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Home My WebLink AboutAgenda Report - June 2, 2021 H-02AGENDA ITEM Hm2, CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2021/22 Financial Plan and Budget; Approving the Fiscal Year 2021/22 Appropriation Spending Limit; Approving the Job Specifications and Salary Ranges for Three New Positions; Approving the FY 2021/22 Investment Policy; and Approving the FY 2021/22 to 2022/23 Budget and Fiscal Policies MEETING DATE: PREPARED BY: June 2, 2021 Deputy City Manager RECOMMENDED ACTION. Adopt resolution approving Fiscal Year 2021/22 Financial Plan and Budget; approving the Fiscal Year 2021/22 Appropriation Spending Limit; approving the job specifications and salary ranges for three new positions; approving the FY 2021/22 Investment Policy; and approving the FY 2021 to 2023 Budget and Fiscal Policies. BACKGROUND INFORMATION: Staff presented information to Council regarding the FY 2021/22 budget at a series of shirtsleeve sessions on May 4th, 11th and 25tH The draft budget document was released and made available to City Council and for public review online on May 14, 2021. The full proposed budget document is available on the City's webpage at httD://ca-lodi.civicDlus.com/ArchiveCenterNiewFile/Item/470. The Budget presented to Council this evening is consistent with the draft released on May 14th and presented at the May 4th, 11th and 25th shirtsleeve Council meeting with the following changes related to the city's Capital Improvement Project program: Pa # De ment Che Add $200,000 in revenue to General Fund Capital 43100000.57702 to recognize a General Fund donation from the todl Police Foundation for their support of renovations to the Annex 265 Capital Gun Ran a Pro ct #216 General Fund Add $1,347,440 in expenses to General Fund Capital 43199000.77020 forthe follmving 257 capital jxgeets:_.. . $200,001) Increase to Chvni hStieci Parkinsg tnt, project #136 $120,000 Increase to Fire Station #3 Generator, project 4140 $50,000 increase for Animal Shelter Roof, project 4207 $300,000 increase for New Animal Shelter, project 4208 $5,000 Increase for Carnegie Forum water Heater, project #211 S10,000 increase for Facilities Office Remodel, project #212 $337,440 increase for Police Department Training Facility, project 9212 $25,000 increase for Miscellaneous CIP Projects, project #215 + 5300 000 Increase for Annex Gun Range improvements. project #216 Parks & Rec Add $10,000 in expenseto 43299000.77020 for Beckman/Vinewood Dog Parks, project 267 capital 4191 In addition to the above projects, the following projects are being included or updated to reflect future project needs. All new and revised forms are attached to this staff report: 185-250 CIP Section 429, 30, 35, 36, 40, 42, 177, 209, 230 and 213. 'CNal 4.. summailos and destirptlmn effeetad by the ahrnw line Item changas mll he upAltid to reflott accurate flgurK. Addin g new GP forms will than a the pm numbers to the final wlntM dotumersl. APPROVED: Stephen Schwabauer, City Manager Adopt Resolution Approving Fiscal Year 2021/22 Financial Plan and Budget; Approving the Fiscal Year 2021/22 Appropriation Spending Limit; Approving the Job Specifications and Salary Ranges for Three New Positions; Approving the FY 2021/22 Investment Policy; and Approving the FY 2021/22 to 2022/23 Budget and Fiscal Policies June 2, 2021 Page 2 The General Fund for FY 2021/22 is presented with revenues and expenditures of $67,074,130. The June 30, 2022 unreserved fund balance is projected to be $11,193,410. The remaining fund expenditures are show in the table below, bringing the City's total FY 2021/22 budget to $245,314,760: City Wide Expenses by Fund Budget 2021-22 Electric Utility $85,326,720 Wastewater Utility 519,471..630 Water Utility $12,706,150 Transit $12,612,620 Employee Benefits Internal Service $9,661,250 Parks, Rec & Cultural Services $9,480,710 Streets $6,228,250 Self -Insurance Internal Service $6,048,360 Community Development $2,947,940 Capital Outlay Fund $4,126,440 Fleet Services $2,051,090 Vehicle & Equipment Replacement $1,866,030 Library $1,666,850 Debt Service $1,658,720 Community Improvement Grants $1,442,070 Special Revenue & Grants $839,800 Trust and Agency $76,000 TDA $30,000 Staffing Changes: The budget proposes 421 full time employees, a net increase of six from FY 2020/21 authorized positions. The recommended changes are shown in the table below: .lob Title De artment +/- I ILegal Secretary City Attorney +1 (Management Analyst Internal Services +1 I Sr. Customer Service Rep Internal Services +1 (Utility Billing Specialist Internal Services -1 (Network Administrator Internal Services +1 Code Enforcement Officer Police +1 (Police Records Clerk Police +1 ,Asst/Assoc Civil Engineer Public Works +1 CDD Program Specialist Community Development +1 Administrative Assistant Community Development -1 Sr. Permit Technician Community Development +1 Permit Technician Community Development -1 Sr. Administrative Clerk PRCS +1 ,Administrative Clerk PRCS -1 iNet Increase +6 Add (1) Legal Secretary — this is a restoration of the Legal Secretary position in the City Attorney's Office that was eliminated in FY 2018/19. Duties at that time were combined with the City Manager's Secretary into a new Executive Administrative Assistant. Over the past three years, the workload of the Executive Administrative Assistant has significantly increased. A part-time Legal Secretary was brought in for 16 months to work through the back -log; however the increasing volume of work in the City Attorney's Office requires clerical support on a full-time basis. Add (1) Management Analyst — this position is being requested on a six-month basis for succession planning in the Internal Services Department/Budget Division due to an upcoming retirement. Adopt Resolution Approving Fiscal Year 2021/22 Financial Plan and Budget; Approving the Fiscal Year 2021/22 Appropriation Spending Limit; Approving the Job Specifications and Salary Ranges for Three New Positions; Approving the FY 2021/22 Investment Policy; and Approving the FY 2021/22 to 2022/23 Budget and Fiscal Policies June 2, 2021 Page 3 Add (1) Sr. Customer Service Representative and Eliminate (1) Utility Billing_ Specialist — a Sr. Customer Service Representative is being requested in the Internal Services Department/Finance Division to replace a vacant Utility Billing Specialist position resulting in a net increase of zero. This position will provide a lead worker in the customer service area of the Collections unit of the Finance Division to perform more complex customer service tasks while also providing support for the Billing unit as needed. The job description for the Sr. Customer Service Representative is attached to this report. The salary scale is requested at 5% higher than a Customer Services Representative: Position: I Step 0 1 Step 1 1 Step 2 1 Step 3 1 Step 4 Sr Customer Service Representative 1 $ 43,038.81 1 $ 45,190.69 1 $ 47,450.21 1 $ 49,822.73 1 $ 52,313 98 • Add 1 Network Administrator — the addition of this position in the Internal Services/IT Division will provide needed support of the cyber infrastructure and virtual server environment. The position will provide the department the resources to maintain operating systems, cloud services, business applications, security tools, web servers and email. • Add 1 Code Enforcement Officer -- the addition of this position in the Police Department will provide staff resources to address over 100 active and open cases in the Code Enforcement Division as well as provide coverage on weekends, thus eliminating overtime and callouts by current staff. • Add 1 Police Records Clerk — the addition of this positon in the Police Department provides staff to support the significant workload increase due to unfunded mandates of state reporting requirements from the National Incident -Based Reporting System and record keeping for the Racial and Identity Profiling Act programs. • Add (1) CDD Program Specialist and Eliminate(l) Administrative Assistant -- the CDD Program Specialist position is being recommended as a reclassification of the Administrative Assistant position in the Community Development Department. This position will provide staff support in the area of long and short term planning efforts to Community Development Block Grants and other grant related programs. Administrative clerical support for the department will be provided by the Administrative Clerk that was added in FY 21 The job description for the CDD Program Specialist is attached to this report. The salary scale for this new position is as follows: Position: I Step 0 1 Step 1 1 Step 2 1 Step 3 1 Step 4 Community Development Program Specialist 1 $ 61,702.69 1 $ 64,787.82 1 $ 68,02721 1 $ 71,428.57 1 $ 75,000.00 • Add (1) Sr, Permit Technician and Eliminate (1) Permit Technician — this new position in the Community Development Department will provide higher level permit technician work, including supervision of the unit and provide support to Plan Examiners. This position will be a promotional opportunity for the Permit Technician. The job description for the Sr. Permit Technician is attached to this report. The salary scale is requested at 15% higher than a Permit Technician: Position: I Step 0 1 Step 1 1 Step 2 1 Step 3 1 Step 4 Senior Permit Technician 1 $ 53,925.66 1 $ 56,622.58 1 $ 59,453.68 I $ 62,426.47 $ 65,547.78 • Add (1) Sr. Administrative Clerk and Eliminate (1) Administrative Clerk — this is a reclassification request in the Parks, Recreation and Cultural Services Department to correct a long-term out of class pay status of the incumbent Administrative Clerk. The clerk has been performing the higher level duties for after a restructuring of clerical support occurred three years ago. FY 2021/22 Investment Policy — staff will be bringing the annual investment policy with the annual budget adoption each year. The investment policy is attached to this report. There are no changes requested for FY 2021/22. Adopt Resolution Approving Fiscal Year 2021/22 Financial Plan and Budget; Approving the Fiscal Year 2021/22 Appropriation Spending Limit; Approving the Job Specifications and Salary Ranges for Three New Positions; Approving the FY 2021/22 Investment Policy; and Approving the FY 2021/22 to 2022/23 Budget and Fiscal Policies June 2, 2021 Page 4 FY 2021/22 to 2022/23 Budget and Fiscal Policies — the Budget and Fiscal Policies are adopted every 2 years. In FY 21, Council adopted a resolution revising the policy to include a temporary suspension of the Pension Stabilization Policy (PSP) due to the unknown impact of the COVID-19 pandemic. Revenues at FY 21 mid -year and projected for FY 22 indicate that the suspension of the PSP is no longer needed and staff recommends reinstating the PSP for the FY 22 and 23 policy period. The updated policy is attached to this report. A resolution adopting the Financial Plan and Budget is attached. Included in the budget resolution is the adoption of the Appropriation Spending Limit for the 2021/22 fiscal year. This limit represents the maximum spending authority for the City based upon population and inflation changes over the last year. The 2021/22 Appropriation Limit is $124,907,868, an increase of $8,043,163 from the prior year. Details of the calculation are included in Attachment A. Also included in the resolution is adopting the Investment Policy and the Budget and Fiscal Policies as indicated above. FISCAL IMPACT: The 2021/22 budget provides an expenditure plan for all funds. The All -Funds expenditure budget is project to be $245,314,760, a decrease of $18,372,790 from the current revised FY 2020/21 budget. General Fund revenues and expenses are projected at $67,074,130. 0OW6"^r Andrew Keys, Deputy City Manager Attachment A —Appropriations Spending Limit Attachment B — Job Specification for Sr Customer Service Representative Attachment C — Job Specification for CDD Program Specialist Attachment D — Job Specification for Sr. Permit Technician Attachment E — Investment Policy Attachment F — Budget and Fiscal Policies Attachment G — New or Updated CIP Project Forms ATTACHMENT A 2021-22 FINANCIAL PLAN AND BUDGET APPROPRIATIONS SPENDING LIMIT CITY OF LODI SENIOR CUSTOMER SERVICE REPRESENTATIVE Attachment B May 2021 Job descriptions are intended to present a broad and general range of duties, which includes, purpose, responsibilities, and scope of work. Job descriptions are not intended to reflect all duties performed within the job. DEFINITION Under general supervision, provides a variety of general office support services related to cashiering, customer service, research and analysis related to customer service, utility billing, and/or other functions as assigned; this position may involve extensive public contact; performs related duties as assigned. DISTINGUISHING CHARACTERISTICS This is an advanced journey level and lead worker classification that is distinguished from Customer Service Representative II in that this class performs the more complex customer service tasks that require analysis, judgement, and decision-making. In addition to complex Customer Service Representative duties this class will be performing Utility Billing functions, including daily tasks and serving as back-up as needed. The position may also exercise technical oversight or indirect supervision over other positions, and provide training, and mentorship to lower -level positions. Receives general supervision from higher-level personnel. EXAMPLES OF DUTIES Duties may include, but are not limited to the following: Provides technical information and instruction regarding policies and procedures to other City departments and staff; Serves as a lead to lower level staff, providing guidance, responding to questions, and directing work activities and duties; may act as the Supervisor in their absence; Reviews own work and work of others for accuracy, completeness, format and compliance with policies and procedures; Performs difficult or complex customer service office support work in assigned function; Resolves the most complex problems involving customer statements, fees, payments and other service related problems; Provides training on customer service and utility billing functions; Provides assistance to utility billing by completing reports, service orders, and other duties as assigned; Serves as a backup to utility billing and/or customer service duties when needed; Attachment B Responds to questions on utility billing, customer service, and other City financial transactions; Acts as liaison to field personnel to initiate or resolve consumption related issues, meter mis-reads and other exceptions related to billing and delinquent accounts; Receives utility bill payments over a public counter or through the mail; Receives revenue for licenses, permits, recreation fees, and other City revenue accounts; Performs other duties related to the operation of the department and the city, including additional duties that enable the department and City to meet the diverse needs of its community. MINIMUM QUALIFICATIONS: Knowledge of: Customer service principles and practices; Utility rate structures and schedules; Working principles of electric and water meters; Research and analysis techniques; Department policies and procedures pertaining to utility billing and collection; Basic math skills; Written and oral communication skills, including spelling, grammar and punctuation, and letter writing; Standard office equipment, including personal computer, and computer software such as Microsoft Word, Excel, Outlook and financial applications/programs. Ability to: Conduct research, perform analysis of data, recommend solutions; use independent judgment and decision-making skills; organize and maintain accurate financial and customer records; Explain policies and utility rates to customers; learn and apply approved general ledger chart of accounts; Establish and maintain effective working relationships with those contacted in the course of work, often in stressful situations; Use good judgment and customer service skills in responding to customer requests or complaints; Communicate clearly and concisely; Prioritize work and coordinate several activities; Attachment B Organize and oversee the work of others; provide input into the duties and performance of staff; Understand and carry out oral and written instructions; interact with the public and staff efficiently and courteously; communicate clearly and concisely. EDUCATION AND EXPERIENCE: Any combination and education that would provide the required knowledge and ability is qualifying. A typical combination is: Education: Equivalent to completion of high school. Associate degree from an accredited college or university in Finance, Accounting, Business Administration, Public Administration or comparable degree is highly desirable. Experience: Two years of experience performing a variety of customer service tasks related to utility billing, service disconnects and reconnects, high/low bill investigation, customer inquiry resolution, and collecting, recording and balancing cash OR one year as a Customer Service Representative II with the City of Lodi. WORKING CONDITIONS: Environmental Conditions: Office environment Physical Conditions: Essential and marginal functions may require maintaining physical condition necessary for sitting, standing bending and stooping for prolonged periods of time; using various office equipment including a computer screen and keyboard and occasionally lifting up to 30 pounds. *FLSA Status: NON-EXEMPT CITY OF LODI PROGRAM SPECIALIST Attachment C MAY 2021 Job descriptions are intended to present a broad and general range of duties, which includes, purpose, responsibilities, and scope of work. Job descriptions are not intended to reflect all duties performed within the job. DEFINITION Provides responsible analytical and journey -level program support; Performs highly skilled, specialized professional activities related to the development, implementation and administration of programs related to housing, community and homeless services and projects requiring independent decision-making, judgment and initiative; oversees the support functions of the assigned program. DISTINGUISHING CHARACTERISTICS Distinguished from Administrative Assistant position in that the latter is responsible for all internal administrative support functions for a department. SUPERVISION EXERCISED AND RECEIVED Receives supervision from higher-level staff. May be responsible for direct and indirect supervision of lower -level staff. ESSENTIAL AND MARGINAL FUNCTIONS Duties may include, but are not limited to the following: Plans, coordinates and administers assigned project or program with department or citywide impact; Confers with department heads, division managers or other professional staff concerning the administrative needs and requirements related to the program or project; Represents the program to members of the public, businesses, other City departments, and various outside public and private agencies; Monitors program activity and objectives to assure compliance with State or Federal administrative regulations and program guidelines; Monitors and evaluates program effectiveness and outcomes; implements program policies and procedures; helps develop guidelines, forms and related documents; Researches, analyzes and reviews grant opportunities; compiles information for preparation of grants, contracts and agreements; Implements, monitors and prepares reports on conduct and performance of grants in coordination with Division Manager; Provides excellent customer service to those contacted in the course of work; Produces various reports, charts, graphs, presentations and high-level correspondence related to program or project; Individual duties, tasks, and projects may vary or differ based on Departmental assignment and operational needs; Attachment C CITY OF LODI Page 2 of 3 Program Specialist Monitors, reviews, analyzes legislation, and provides legislative updates and impacts to management staff; Develop recommendations and conduct meetings with management staff pertaining to assigned program area; Establish and maintain record keeping, filing and tracking system; Check and process invoices; May supervisor, review, or coordinate the work of others; Performs other duties related to the operation of the department and the City including additional duties that enable the department and City to meet the diverse needs of its community. QUALIFICATIONS Knowledge of: English usage, spelling, grammar and punctuation; Modern office methods, procedures and equipment, including word processing spreadsheet, database and scheduling software for personal computers; Applicable laws and administrative regulations relating to the program area to which assigned; Principles and practices of public administration and governmental finance, budgeting, and accounting; Procurement methods; Research techniques, methods and procedures; Methods and practices of modern office management; Principles and practices of program management and administration; Technical report writing; Principles of supervision, training and performance evaluation. Ability to: Analyze administrative, operational and organizational problems, evaluate alternatives and reach sound conclusions; Collect, evaluate and interpret varied information and data, either in statistical or narrative form; Attachment C CITY OF LODI Page 3 of 3 Program Specialist Interpret and apply laws, regulations, policies and procedures; Communicate effectively, orally and in writing; Prepare clear, concise and complete reports and other written materials; Maintain accurate records and files; Coordinate and prioritize multiple projects and meet critical deadlines; Exercise sound independent judgment within established guidelines; Use initiative and independent judgement; Work independently; Establish and maintain effective working relationships with those contacted in the course of the work. EDUCATION AND EXPERIENCE Any combination of experience and education that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities are: Education: Equivalent to the completion of high school supplemented by college courses in business or public administration or a closely related field. Bachelor's degree preferred. Experience: Four years of progressively responsible professional -level administrative experience. LICENSES AND CERTIFICATES Possession of a valid Driver's License (Class C) issued from the California Department of Motor Vehicles. WORKING CONDITIONS: Environmental Conditions: Office environment Physical Conditions: Essential and marginal functions may require maintaining physical condition necessary for sitting, standing bending and stooping for prolonged periods of time; using various office equipment including a computer screen and keyboard and occasionally lifting up to 30 pounds. *FLSA Status: NON-EXEMPT CITY OF LODI SENIOR PERMIT TECHNICIAN Attachment D MAY 2021 Job descriptions are intended to present a broad and general range of duties which includes, purpose, responsibilities, and scope of work. Job descriptions are not intended to reflect all duties performed within the job. DEFINITION: Under general direction, responsible for, organizing, and coordinating the day-to-day operations of the Permit Center within the Community Development Department; including, supervising the work and activities of Permit Center staff engaged in providing information and direction to the public on building issues, processes, and requirements; providing technical expertise in building, plan review administration; performs related duties as assigned. DISTINGUISING CHARACTERISTICS This is an advanced journey level and first line supervisor classification that is distinguished from the Permit Technician in that this class performs the more complex Permit Technician tasks that require analysis, judgement, and decision-making. May be responsible for functional, technical, or direct supervision over lower level staff. Receives general supervision from higher level personnel. EXAMPLES OF DUTIES: Duties may include, but are not limited to the following: Coordinates the activities and functions of the permit/customer center as required with other departments and divisions within the City; Responds to inquiries from staff and the general public and addresses any concerns or complaints; Reviews policies, procedures, regulations, reports and legislations to determine operational changes; Implements new technology; oversees enhancements/improvements to existing technology and programs; maintains and improves processes to enhance work efficiency and the delivery of services; Develops and oversees the distribution of information handouts, brochures and website materials related to the Permit/Customer Center; Performs a full range of technical duties in support of the Community Development Department's building services division, including but not limited to, conformance with the City's building requirements and processes, minor plan checks, issue minor permits, Attachment D CITY OF LODI Senior Permit Technician Pale 2 of 4 and review and approve plans and accompanying documents on over-the-counter permits; Operates and maintains the division's automated permit tracking system; Calculates permit and mitigation fees, and provides fee estimates as requested; Access, enter, and update computerized plan check data entry and tracking systems, and provides information to the public relating to the status of projects and permits; Supervises, trains and evaluates subordinates and assigned staff; Preparesreports, memos, and letters pertaining to development review and permitting; Collects, records, and balances permit -related monetary transactions; Researches, compiles, and analyzes data for special projects and various reports; Builds, and maintains positive working relationships with co-workers, other City employees and the public using principles of good customer service; Performs other duties related to the operation of the department and the city, including additional duties that enable the department and City to meet the diverse needs of its community. MINIMUM QUALIFICATIONS: Knowledge of: Applicable codes and laws enforced by the Building Inspection Division; Basic office practices and procedures, including filing and the operation of standard office equipment; Basic business data processing principles and the use of and operation of a personal computer; Basic real property descriptive terminology and concepts; building materials and modern methods of building construction; Customer service principles and practices; Principles of supervision, training and performance evaluation; Land use regulations; Building plans, blueprints, site plans, maps and civil drawings; Attachment D CITY OF LODI Senior Permit Technician Page 3 of 4 Business arithmetic, including the calculation of areas and fees. Ability to: Process permit applications for new construction and building modifications; Assist in coordinating the permitting process with building official, inspectors, planners, engineers, fire inspectors, other City staff, County, State and other outside agencies; Calculate and collect building permit fees accurately; Read and interpret blueprints, plans, codes, ordinances and procedures; Communicate clearly, concisely and effectively both verbally and in writing; Communicate tactfully and effectively with the public; Operate office equipment including a computer and associated software programs; Organize and maintain accurate records and office files; Use and operate centralized telephone equipment, personal computer, related software and peripheral equipment; Organize and oversee the work of others; provide input into the duties and performance of staff; Establish and maintain cooperative and effective relationships with those contacted during the course of work; Use good judgement and customer service skills in responding to customer requests or complaints. EDUCATION AND EXPERIENCE: Any combination of experience and education that would likely produce the qualifying knowledge and ability. A typical combination is: Education: Equivalent to the completion of high school including completion of College course work in related field. Experience: Four years of responsible public agency experience reviewing and processing commercial, industrial, or residential building permits; Some lead or supervisory experience is desirable. LICENSES AND CERTIFICATES: Attachment D CITY OF LODI Senior Permit Technician Page 4 of 4 Possession of a valid Driver's License (Class C) issued from the California Department of Motor Vehicles. ICC Certification as a permit technician. WORKING CONDITIONS: Physical Conditions: Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, and over the telephone. Essential and marginal functions may require maintaining physical condition necessary for sitting, standing, bending, stooping, kneeling, reaching, pushing and pulling; occasionally lift and carry reports and records that typically weigh less than 20 pounds. Environmental Conditions: Office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances; may work in the field and occasionally be exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, mechanical and/or electrical hazards, and hazardous physical substances and fumes; may interact with upset staff and/or members of the public. *FLSA Status: NON-EXEMPT Attachment E CITY OF LODI INVESTMENT POLICY Fiscal Year 2020/212021/22 Resolution 2020-273 2021- TABLE OF CONTENTS 1.1 PURPOSE............................................................................................................................................1 1.2 POLICY.................................................................................................................................................1 1.3 SCOPE.................................................................................................................................................1 1.4 PRUDENT INVESTOR STANDARD....................................................................................................1 1.5 PUBLIC TRUST....................................................................................................................................2 1.6 ETHICS AND CONFLICTS OF INTEREST.........................................................................................2 1.7 OBJECTIVES.......................................................................................................................................3 1.8 LIMITING MARKET VALUE EROSION...............................................................................................4 1.9 STATEMENT OF INVESTMENT POLICY...........................................................................................4 1.10 DELEGATION OF AUTHORITY.........................................................................................................4 1.11 MONITORING AND ADJUSTING THE PORTFOLIO........................................................................4 1.12 INTERNAL CONTROL.......................................................................................................................5 1.13 REPORTING......................................................................................................................................5 1.14 AUTHORIZED INVESTMENTS..........................................................................................................6 1.15 BANKS AND QUALIFIED BROKER/DEALERS.................................................................................7 1.16 PURCHASE OF CDs FROM LOCAL INSTITUTIONS.......................................................................8 1.17 SAFEKEEPING AND COLLATERILIZATION...................................................................................8 1.18 ADMINISTRATION............................................................................................................................9 2.1 INTERNAL CONTROLS - GENERAL..............................................................................................11 2.2 INTERNAL CONTROL PROCEDURES...........................................................................................12 2.3 TREASURY FUNCTION RESPONSIBILITIES...............................................................................13 2.4 BROKER/DEALER QUESTIONNAIRE...........................................................................................14 2.5 BROKER DEALER CERTIFICATION.............................................................................................16 GLOSSARY.......................................................................................................................17 CITY OF LODI INVESTMENT POLICIES 1.1 PURPOSE The purpose of this policy is to state the City's policies for the investment of surplus funds in the City treasury in a prudent and systematic manner conforming to all state and local statutes governing the investment of public funds. Safety of principal is given the highest priority. In addition, this statement is intended to formalize investment -related activities to provide the highest investment return with maximum security while meeting daily cash flow demands. The ultimate goal is to protect the City's pooled investment cash while enhancing the City's economic status. 1.2 POLICY It is the policy of the City of Lodi to invest public funds in a manner which will provide a sound investment return with maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statues governing the investment of public funds. The City of Lodi's investment policy has three objectives: (1) protect principal, (2) provide for liquidity needs, and (3) obtain the most reasonable rate of return possible within the first two objectives. The overarching theme of this policy is to utilize the "prudent investor" standard (see discussion below). This affords a broad range of investment opportunities so long as the investment is prudent and permissible under current state and local law. 1.3 SCOPE The investment policy applies to all funds under the direct authority of the City Treasurer of the City of Lodi, including but not limited to the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, Internal Service Funds and Trust and Agency Funds. All funds are accounted for in the City's Comprehensive Annual Financial Report. Investments of debt proceeds held by bond trustee are governed by the provisions of the debt agreements. Proceeds of bonds will be invested in accordance with the ordinance, resolution, indenture or other agreement governing the issuance of the bonds. 1.4 PRUDENT INVESTOR STANDARD The prudent investor standard requires all those involved in the investment process to act as if the assets in the portfolio are their own. By the prudent investor standard, the rules outlined in this policy, and other applicable state and local laws and regulation, are binding constraints to be considered in taking any action. The City Council, Treasurer and all persons authorized to make investment decisions on behalf of the City are trustees and therefor fiduciaries subject to the prudent investor standard. The "prudent investor" standard, is in accordance with Government Code Section 53600.3 which states "...all governing bodies of local agencies or persons authorized to CITY OF LODI INVESTMENT POLICIES make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." It is the City's full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. However, it is realized that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized, that in a well -diversified investment portfolio, occasional measured losses are inevitable due to economic, bond market or individual security credit analysis. These occasional losses must be considered within the context of the overall investment program objectives and the resultant long tem rate of return. The City Treasurer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner, appropriate action is taken to control adverse developments, and the relieved parties acted at all times in a fashion that met their fiduciary obligation to the City of Lodi. 1.5 PUBLIC TRUST All participants in the investment process shall act as fiduciaries and custodians of public funds. Investment officials shall recognize the portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. 1.6 ETHICS AND CONFLICTS OF INTEREST As a minimum standard, the City Treasurer and all other personnel authorized to make investment decisions are governed by The Political Reform Act of 1974 regarding disclosure of material financial interests as well as Government Code Section 87103. The City Treasurer and all other personnel authorized to make investment decisions shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair the ability to make impartial investment decisions. The Treasurer is CITY OF LODI INVESTMENT POLICIES required to make known to the City Manager and City Council any conflicts of interest that may arise immediately upon becoming aware of a potential conflict. The Treasurer and other key finance personnel are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPCC). 1.7 OBJECTIVES Funds of the City will be invested with the following objectives in priority order: Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Lodi shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. The City of Lodi will diversify its investments by security type and institution. Financial institutions and broker/dealers will be prequalified and monitored as well as investment instruments they propose. The City shall seek to preserve principal by mitigating two types of risk: Credit Risk — Defined as the risk of loss due to failure of the issuer of a security. Credit risk shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City's cash flow. Market Risk — Defined as the market value fluctuations due to overall changes in the general level of interest rates. Market risk shall be mitigated by limiting the weighted average maturity of the City of Lodi s investment portfolio to three and one-half years, the maximum maturity of any one security to five years, and structuring the portfolio based on historic and current cash flow analysis, thereby eliminating the need to sell securities prior to maturity. Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. This will be accomplished through maturity diversification in accordance with California Government Code 53635 and the State Local Agency Investment Fund with immediate withdrawal provision. Yield: CITY OF LODI INVESTMENT POLICIES The City's investment portfolio shall be designed with the objective of attaining a sound yield (rate of return) through budgetary and economic cycles, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio. The City will attempt to obtain the most reasonable yield possible when selecting an investment, provided the criteria for safety and liquidity of the total portfolio are met. 1.8 LIMITING MARKET VALUE EROSION It is the general policy of the City to limit the potential effects from erosion in market values by adhering to the following guidelines: • All immediate and anticipated liquidity requirements shall be addressed prior to purchasing investments. • Maturity dates for investments shall coincide with significant cash flow requirements, where possible, to assist with cash requirements at maturity. • All securities shall be purchased with the intent to hold all investments to maturity. However, economic or market conditions may change, making it in the City's best interest to sell or trade a security prior to maturity. 1.9 STATEMENT OF INVESTMENT POLICY The City of Lodi's Investment Policy shall be adopted by Resolution of the City Council. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidly and yield, and its relevance to current law and financial and economic needs. Any amendments to the policy shall be forwarded to the City Council for approval. 1.10 DELEGATION OF AUTHORITY The Treasurer is designated by the authority of the legislative body as the investment officer of the City as provided for in Government Code Section 53607 and is responsible for the investment decisions and activities of the City. The Treasurer will develop and maintain written administrative procedures for the operation of the investment program, consistent with this investment policy. The Treasurer may delegate certain day to day functions as necessary to execute this policy and manage the portfolio in the most efficient and effective manner. The Treasurer shall hereafter assume full responsibility for such transactions until such time as the delegation of authority is revoked, and shall make a quarterly report of such transactions to the legislative body. 1.11 MONITORING AND ADJUSTING THE PORTFOLIO CITY OF LODI INVESTMENT POLICIES The Treasurer will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments, and will adjust the portfolio accordingly. It is the City's full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. 1.12 INTERNAL CONTROL The Treasurer will establish a system of written internal controls, which will be reviewed annually by the City's independent audit firm. The controls will be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions. 1.13 REPORTING The Treasurer will submit a quarterly investment report to the City Council, in accordance with Government Code Section 53646, to disclose the following information: • A listing of individual securities held at the end of the reporting period by authorized investment category. • Notation of Securities purchased within the reporting period. • Percentage of the portfolio represented by each investment category. • Institution. • Average life and final maturity of all investments listed. • Coupon, discount or earnings rate. • Par value or cost of the security • Current market value of securities with maturity in excess of 12 months and the source of this valuation. • Ability of the city to meet its expenditure requirements for the next six months or provide an explanation of why sufficient funds will not be available as required by Gov. Code 53646 (b)(3). The quarterly investment report to the Lodi City Council, acting legislative authority, as endorsed by Government Code Section 53646, will be in addition to the Treasurer's monthly report and accounting of all receipts, disbursements and fund balances. 5 CITY OF LODI INVESTMENT POLICIES 1.14 AUTHORIZED INVESTMENTS The City will invest surplus funds not required to finance the immediate needs of the City as provided in California Government Code Sections 16429.1, 53601, 53601.6, 53601.8, 53635, 53635.2, 53638 and 53684. In selecting authorized investments consideration must be given to credit ratings, maturities, current makeup of the City's portfolio and collateralization of applicable instruments. A list of eligible instruments is provided below. Permitted Investments Maturity Maximum % of Minimum Portfolio Quality Requirements U.S. Treasury Obligations (Bills, notes and 5 years 100% None bonds) US Government Agency Securities and 5 years 100% None Instrumentalities Bankers Acceptances 180 days 40% None Certificates of Deposit 5 years 100% None Negotiable Certificates of Deposit 5 years 30% None Commercial Paper 270 days 30% Credit Rating of P1/A1 or Al +/F1 or F1+ by Moody's, S&P or Fitch California State Local Agency Investment Indefinite 100% None Fund Passbook Deposits Indefinite 100% None Mutual Funds and Money Market Mutual N/A 20% Multiple Funds Requirements per Gov't Code Medium Term Corporation Notes 5 years 30% A-/A3/A- by Moody's, S&P, or Fitch Joint Powers Authority Pool Indefinite 30% Multiple (Funds held at Requirements NCPA shall not per Gov't count to this limit) Code Certificate of Deposit Account Registry Indefinite 30% None Service (CDARS) CITY OF LODI INVESTMENT POLICIES Supranational Obligations 5 years 30% AA-/Aa3/AA- by Moody's, S&P, or Fitch Municipal Securities (50 States or 5 years 100% None California Local Agencies) Investments not listed in this section, including those otherwise authorized by California Government Code are ineligible investments for the City of Lodi. Ineligible investments include, but are not limited to, common stocks, long term (over five years in maturity) notes and bonds, swaps, options, derivatives, repurchase and reverse repurchase agreements and swap agreements. Pooled funds invested for the City by entities such as California State Local Agency Investment Fund, CalTRUST, NCPA, or other Joint Powers Authority Pools may invest in swaps, options, derivatives or repurchase and reverse repurchase agreements as permitted by California Government Code and the respective policy guidelines of the investing agency. 1.15 BANKS AND QUALIFIED BROKER/DEALERS The Treasurer will consider the credit worthiness of institutions in selecting financial institutions for the deposit or investment of City funds. These institutions will be monitored to ensure their continued stability and credit worthiness. The City shall conduct investment transactions only with qualified banks, savings and loans, and broker/dealers. The Treasurer shall investigate dealers who wish to do business with the City to determine that they are adequately capitalized, have no pending legal action against the firm or the individual broker and that they participate in markets appropriate to the City's needs. Third parties in this category will be required to provide their most recent Consolidated Report of Condition ("call report") prior to transacting business with the City and at the request of the Treasurer during the course of conducting business. The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will be maintained of approved security brokers/dealers selected for credit worthiness. The City shall send a copy of the current investment policy to all broker/dealers approved to do business with the City. Written and signed confirmation, on company letterhead, of receipt of this policy shall be considered evidence that the dealer understands the City's investment policies and intends to sell the City only appropriate investments authorized by this policy and all applicable state and federal laws and regulations. CITY OF LODI INVESTMENT POLICIES In addition, all financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Treasurer with the following: • Audited financial statements • Proof of Financial Industry Regulatory Authority registration. • Trading Resolution • Proof of State Registration • Certification of having read the City of Lodi's investment policy and depository contracts. An annual review of the financial condition and registration of qualified bidders will be conducted by the Treasurer. The City will not normally use more than three qualified dealer/brokers to obtain bids. 1.16 PURCHASE OF CDs FROM LOCAL INSTITUTIONS To the extent reasonable and within the limits specified above, the Treasurer may purchase a Certificate of Deposit, up to the amount fully insured by the Federal Deposit Insurance Corporation (FDIC), from each bank and savings and loan institution located within the corporate limits of the City to promote economic development and as a statement of support for those institutions maintaining an office in Lodi. These investments are limited to those institutions which offer Certificates of Deposit insured by the Federal Deposit Insurance Act and have a Community Reinvestment Act Rating of satisfactory or above. To aid in the diversification of the portfolio, additional Certificates of Deposit in amounts up to fully insured FDIC limits, may be purchased from local institutions provided the investment has the safety, liquidity and a rate of return comparable to that offered from LAIF at the time the original investment is made. Additional Certificates of Deposit may be purchased from a single institution so long as the amounts are fully collateralized as described in Section 1.17. 1.17 SAFEKEEPING AND COLLATE RILIZATION All investment securities purchased by the City will be held in third -party safekeeping by an institution designated as primary agent. The custodian will hold these securities in a manner that establishes the City's right of ownership. The primary agent will issue a safekeeping receipt to the City listing the specific instruments, rate, maturity and other pertinent information. Deposit type securities (i.e., certificates of deposit) will be collateralized. CITY OF LODI INVESTMENT POLICIES Collateral for time deposits in savings and loans will be held by the Federal Home Loan Bank or an approved Agent of Depository. If collateral is government securities, 110% of market value to the face amount of the deposit is required. Promissory notes secured by first mortgages and first trust deeds used as collateral require 150% of market value to the face amount of the deposit. An irrevocable letter of credit issued by the Federal Home Loan Bank of San Francisco requires 105% of market value to the face amount of the public deposit. The collateral for time deposits in banks should be held in the City's name in the bank's Trust Department, or alternately, in the Federal Reserve Bank. The City may waive collateral requirements for deposits which are fully insured up to limits prescribed by the FDIC. The amount of securities placed with an agent of depository will at all times be maintained in accordance with California Government Code 53652. 1.18 ADMINISTRATION The following administrative policies will be strictly observed: Payment: All transactions will be executed on a delivery versus payment basis which should be done by the City's safekeeping agent. Bid: A competitive bid process in which no less than three competitive bids are obtained, when practical, will be used to place all investment purchases. Typically when soliciting bids, the Treasurer or Supervising Budget Analyst will specify through email with a blind copy to qualified brokers the following: maturity date, credit quality, eligible investment category, amount available to invest and security names the City will not consider due to overconcentration. The open window for providing offers shall be a minimum of one hour and the City's review period shall be no more than one hour in order to minimize the risk of market price fluctuations between security offer and the City's decision to purchase. Securities not matching the requirements for the portfolio will not be considered in that solicitation. The Treasurer has the right to refuse all bids and reissue a solicitation. If less than three qualifying responses are received, the Treasurer may choose to select from the responses received or to reissue the solicitation. Wire Transfers: 9 CITY OF LODI INVESTMENT POLICIES All wire transfers will be initiated by the Supervising Budget Analyst and approved by the Treasurer. The City's utilizes electronic dual controls on all wire transfers requiring that approvers cannot be initiators and vice versa. Pre -formatted wire transfers will be used to restrict the transfer of funds with preauthorized accounts only. Confirmations: Receipts for confirmation of a purchase of authorized securities should include the following information: trade date; par value; maturity; rate; price; yield; settlement date; description of securities purchased; net amount due; third -party custodial information. Confirmations of all investment transactions are to be received by the Treasurer not later than the business day immediately following the trade. Same day confirmations are preferred. Pooled Cash: The City will consolidate into one bank account and invest on a pooled concept basis. Interest earnings will be allocated monthly based on current cash balances. Bond Proceeds: The City will comply with applicable federal tax law and regulations in connection with the investment of bond proceeds. 10 CITY OF LODI INVESTMENT POLICY 2.1 INTERNAL CONTROLS - GENERAL Through this system of internal control, the City is adopting procedures and establishing safeguards to prevent or limit the loss of funds invested or held for investment due to errors, losses, misjudgments and improper acts. Internal control procedures are not intended to address every possible situation but are intended to provide a reasonable and prudent level of protection for the City's funds. Obiectives: These procedures and policies are established to ensure: • the orderly and efficient conduct of investment practices, including adherence to investment policies • the safeguarding of surplus cash • the prevention or detection of errors and fraud • the accuracy and completeness of investment records • the timely preparation of reliable investment reports General Control Policies: The following policies are to be used to safeguard investments: Organization A description of responsibilities and procedures for the investment of City funds, lines of authority and reporting requirement will be maintained. Personnel Only qualified and assigned personnel will be authorized to approve investment transactions; make and liquidate investments; maintain investment records; and maintain custody of negotiable instruments. Personnel assigned responsibility for the investment of City surplus funds will maintain their professional qualifications by continued education and membership in professional associations. • Segregation of functions No one having general ledger functions will have responsibility for the investment of City funds. Safekeeping All securities are to be held in the name of the City of Lodi. The City will contract with a third party, usually a bank, to provide custodial services and securities safekeeping. Although a cost is involved, the risk of losing physical securities outweighs the fees involved. Preference should be given to custodial services which include reporting 11 CITY OF LODI INVESTMENT POLICY services as part of their service, including marking the portfolio to market value, performance evaluation and internal reporting • Reconciliation of records Regular and timely reconciliation will be made of detailed securities records with the general ledger control account. • Performance evaluation Performance statistics will be maintained and reported monthly as provided in the Investment Policies. WAIkik94Nki/_1 Weis] 0kI:To]0>:ZIZs]4101:7*[ Assigned Responsibilities: a. City Council responsibilities: • Adoption of City's investment policies by Resolution • Review and evaluation of investment performance. b. Treasurer duties and responsibilities: • Formulating, recommending and implementing the City's investment policies • Approves all investment transactions prior to execution of any transaction • Approves broker/dealer arrangements. c. Supervising Budget Analyst duties and responsibilities: • Recommends broker/dealer arrangements • Recommends investments • Executes investment transactions • Maintains records of all investment transactions • Prepares quarterly investment report for City Council review • Prepare fiscal year end investment reports for City's independent audit firm review • Review's financial condition of the City's depositories (banks) at least annually for compliance with collateralization requirements under government code and financial condition and reports results to City Treasurer. d. Financial Services Manager duties and responsibilities: • Maintains general ledger control account and duplicate records of investment transactions • Verifies investment records and reconciles detailed securities records with general ledger control accounts. 12 CITY OF LODI INVESTMENT POLICY e. City's independent audit firm: • Will review the City's investment policies and procedures and make appropriate recommendations and findings as to compliance and steps to be taken to improve internal controls. 2.3 TREASURY FUNCTION RESPONSIBILITIES FUNCTION RESPONSIBILITIES 1. Recommendations: • Recommends broker/dealer arrangements Supervising Budget Analyst • Recommends investments Supervising Budget Analyst 2. Authorization of Investment Transactions • Formal investment policy prepared by Treasurer • Formal investment policy approved by City Council • Investment transactions approved by Treasurer • Broker/deal arrangements approved by Treasurer 3. Execution of Investment Transactions Supervising Budget Analyst 4. Recording of Investment Transactions • Recording of transactions in Treasurer's records Supervising Budget Analyst • Recording of transactions in Accounting records Financial Services Manager 5. Safeguarding of assets and records • Maintenance of Treasurer's records Supervising Budget Analyst • Reconciliation of Treasurer's records to Financial Services Manager accounting records • Review of (a) financial institution's financial condition, (b) safety, liquidity, and potential yields Supervising Budget Analyst of investment instruments, and (c) reputation and financial condition of investment brokers • Periodic reviews of collateral Supervising Budget Analyst • Review and evaluation of performance City Council 6. Preparation of reports Supervising Budget Analyst 7. Annual review of investment portfolio for City's Audit Firm conformance to City's investment policy 13 CITY OF LODI INVESTMENT POLICY 2.4 BROKER/DEALER QUESTIONNAIRE BROKER/DEALER QUESTIONNAIRE CITY OF LODI TREASURER'S OFFICE P. O. Box 3006 Lodi, California 95241 1. Name: 2. Branch Address: 3. Telephone No.: Primary Account Representative: Name: Title: Telephone No.: 5. Is your firm a primary dealer in US Government Securities? Y/N 6. Identify the personnel who will be trading with or quoting securities to our agencies employees: Name Title Telephone No. National Headquarters Address: Corporate Contract: Telephone No.: Compliance Officer (Name, Address, Telephone): 8. What was your firm's total volume in US Government and Agency securities trading last calendar year? 9. Which securities are offered by your firm? ( ) US Treasury ( ) Commercial Paper ( ) US Treasury Notes ( ) BAs Domestic ( ) US Treasury Bonds ( ) BAs Foreign ( ) Agencies (specify) ( ) Repurchase Agreements ( ) Negotiable CD's ( ) Reverse Repurchase Agreements 10. List your personnel who have read the City of Lodi Treasurer's Investment Policy. 11. Please identify your public -sector clients in our geographical area who are most comparable to our government with which you currently do business. 12. Have any of your clients ever sustained a loss on a securities transaction arising from misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, please explain. 14 CITY OF LODI INVESTMENT POLICY 13. Have any of your public -sector clients ever reported to your firm, is officers or employees, orally or in writing, that they sustained a loss exceeding 10% of the original purchase price in a single year on any individual security purchased thorough your firm? Explain. 14. Has your firm ever been subject to a regulatory or state/federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees ever been so investigated? Explain. 15. Has a public sector client ever claimed in writing that your firm or members of your firm were responsible for investment losses? 16. Please include samples of research reports that your firm regularly provides to public -sector clients. 17. Please explain your normal delivery process. Who audits these fiduciary systems? 18. Please provide certified financial statements and other indicators regarding your firm's capitalization. 19. Describe the capital line and trading limits that support/limit the office that would conduct business with our government. 20. What training would you provide to our employees and investment officers? 21. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? As of this date, does your firm comply with the guidelines? Has your capital position every fallen short? By what factor (1.5x, 2x, etc.). Does your firm presently exceed the capital adequacy guidelines, measure of risk? Include certified documentation of your capital adequacy as measured by the Federal Reserve standards. 22. Do you participate in the Securities Investor Protection Corporation (SIPC) insurance program? not, why? 23. What portfolio information do you require from your clients? 24. What reports, confirmations and paper trail will we receive? 25. Enclose a complete schedule of fees and charges for various transactions. 26. How many and what percentage of your transactions failed last month? Last year? 27. Describe the precautions taken by your firm to protect the interest of the public when dealing with governmental agencies as investors. 28. Is your firm licensed by the State of California as a broker/dealer? Y/N 15 CITY OF LODI INVESTMENT POLICY 2.5 BROKER/DEALER CERTIFICATION CERTIFICATION ATTACHEDCERTIFICATION I hereby certify that I have personally read the latest adopted resolution of investment policies and objectives of the City of Lodi Treasurer and the California Government Codes pertaining to the investments of the City of Lodi, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out to transaction conducted between our firm and the City of Lodi. All sales personnel will be routinely informed of the City of Lodi's investment objectives, horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City of Lodi of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire. SIGNED TITLE COUNTERSIGNED DATE (Person in charge of government securities operations) DATE NOTE: Completion of Questionnaire is only part of the City of Lodi's Certification process and DOES NOT guarantee that the applicant will be approved to do business with the City of Lodi. On this day of 20 before me the undersigned Notary Public personally appeared ( ) personally known to me ( ) proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) subscribed to the within instrument and acknowledged that executed it. State of County of WITNESS my hand and official seal. Notary's Signature 16 CITY OF LODI INVESTMENT POLICY GLOSSARY AGENT: an agent is a firm or individual which executes orders for others or acts on behalf of others (the principal). The agent is subject to the control of the principal and does not have title to the principal's property. The agent may charge a fee or commission for this service. AGENCIES: federal agency securities and/or Government-sponsored enterprises. AGREEMENT: an agreement is an arrangement or understanding between individual traders to honor market quotes within predetermined limits on dollar amount and size. AMORTIZATION: straight-line reduction of debt by means of periodic payments sufficient to meet current interest charges and to pay off the debt at maturity. ARBITRAGE: a technique used to take advantage of price differences in separate markets. This is accomplished by purchasing securities, negotiable instruments or currencies in one market for immediate sale in another market at a better price. ASKED: the price at which securities are offered. AT THE MARKET: a trading term for the buying or selling of securities at the current market price rather than at a predetermined price. BANKERS ACCEPTANCE (BA): a bearer time draft for a specified amount payable on a specified date. An individual or business seeking to finance domestic or international trade draws it on a bank. Commodity products collateralize the BA. Sale of goods is usually the source of the borrower's repayment to the bank. The bank finances the borrower's transaction and then often sells the BA on a discount basis to an investor. At maturity, the bank is repaid and the investor holding the BA receives par value from the bank. BASIS PRICE: price expressed in yield -to -maturity or the annual rate of return on the investment. BEAR MARKET: a period of generally pessimistic attitudes and declining market prices. (Compare: Bull market) BELOW THE MARKET: a price below the current market price for a particular security. BID AND ASKED OR BID AND OFFER: the price at which an owner offers to sell (asked or offer) and the price at which a prospective buyer offers to buy (bid). It is often referred to as a quotation or a quote. The difference between the two is called the spread. BOND: an interest-bearing security issued by a corporation, government, governmental agency or other body, which can be executed through a bank or trust company. A bond is a 17 CITY OF LODI INVESTMENT POLICY form of debt with an interest rate, maturity, and face value, and is usually secured by specific assets. Most bonds have a maturity of greater than one year, and generally pay interest semiannually. BOND ANTICIPATION NOTE (BAN): short-term notes sold by states and municipalities to obtain interim financing for projects which will eventually be financed by the sale of bonds. BOND DISCOUNT: the difference between a bond's face value and a selling price, when the selling price is lower than the face value. BOND RATING the classification of a bond's investment quality. (See: Rating). BOND RESOLUTION: a legal order or contract by a governmental unit to authorize a bond issue. A bond resolution carefully details the rights of the bondholders and the obligation of the issuer. BOOK VALUE: the amount at which a security is carried on the books of the holder or issuer. The book value is often the cost, plus or minus amortization, and may differ significantly from the market value. BROKER: a middleman who brings buyers and sellers together and handles their orders, generally charging a commission for this service. In contrast to a principal or a dealer, the broker does not own or take a position in securities. BULL MARKET: a period of generally optimistic attitudes and increasing market prices. (Compare: Bear Market). BUYERS MARKET: a market where supply is greater than demand, giving buyers an advantage in purchase price and terms. CALL: an option to buy a specific asset at a certain price within a particular period. CALLABLE: a feature which states a bond or preferred stock may be redeemed by the issuer prior to maturity under terms designated prior to issuance. CALL DATE: the date on which a bond may be redeemed before maturity at the option of the issuer. CALLED BONDS: bonds redeemed before maturity. CALL PREMIUM: the excess paid for a bond or security over its face value. CALL PRICE: the price paid for a security when it is called. The call price is equal to the face value of the security, plus the call premium. W CITY OF LODI INVESTMENT POLICY CALL PROVISION: the call provision describes the details by which a bond may be redeemed by the issuer, in whole or in part, prior to maturity. A Security with such a provision will usually have a higher interest rate than comparable, but noncallable securities. CAPITAL GAIN OR LOSS: the amount that is made or lost, depending upon the difference between the sale price and the purchase price of any capital asset or security. CAPITAL MARKET: the market in which buyers and sellers, including institutions, banks, governments, corporations and individuals, trade debt and equity securities. CASH SALE: a transaction calling for the delivery and payment of the securities on the same day that the transaction takes place. CERTIFICATE OF DEPOSIT (CD): debt instrument issued by a bank that usually pays interest. Institutional CD's are issued in denominations of $100,000 or more. Maturities range from a few weeks to several years. Competitive forces in the marketplace set interest rates. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS): deposits made with a "selected" depository institution, in accordance with California Government Code Section 53601.8, that uses a private entity to assist in the placement of certificates of deposit. Such deposits shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. The selected depository institution shall serve as custodian for each certificate of deposit that is issued with placement service for the City of Lodi's account. COLLATERAL: securities or other property, which a borrower pledges for the repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COLLATERAL NOTE: a promissory note, which specifically mentions the collateral, pledged by the borrower for the repayment of an obligation. COMMERCIAL PAPER: short-term obligations with maturities ranging from 2 to 270 days issued by banks, corporations, and other borrowers to investors with temporarily idle cash. Such instruments are unsecured and usually discounted, although some are interest-bearing. COMMISSION: the brokers or agent's fee for purchasing or selling securities for a client. COUPON: the annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. COVENANT: a pledge in the bond resolution or indenture of the issuing government to perform in a way that may benefit the bondholders, or to refrain from doing something that might be disadvantageous to them. 19 CITY OF LODI INVESTMENT POLICY COVER: the spread between the winning bid (or offer) and the next highest bid (or the next lowest offer). It is useful as a basis for evaluation of the bids. COVERAGE RATIO: the ratio of income available to pay a specific obligation versus the total amount obligated. This is a measure of financial stability. CREDIT ANALYSIS: a critical review and appraisal of the economic and financial condition of a government agency or corporation. The credit analysis evaluates the issuing entity's ability to meet its debt obligations, and the suitability of such obligations for underwriting or investment. CURRENT MATURITY: amount of time left to the maturity of an obligation. DEBENTURE: a bond secured by the general credit of the issuer rather than being backed by a specific lien on property as in mortgage bonds. DEBT COVERAGE: this term is normally used in connection with revenue and corporate bonds. It indicates the margin of safety for payment of debt, reflecting the number of times by which earnings for a certain period of time exceed debt payable during the same period. DEBT LIMIT (OR CEILING): the maximum amount of debt that can legally be acquired under the debt -incurring power of a state or municipality. DEBT SERVICE: interest and principal obligation on an outstanding debt. This is usually for a one-year period. DEFAULT: failure to pay principal or interest promptly when due. DELIVERY VERSUS PAYMENT: securities industry procedure, common with institutional accounts, whereby delivery of securities sold is made to the buying customer's bank in exchange for payment, usually in the form of cash. (Institutions are required by law to require "assets of equal value" in exchange for delivery.) Also called Cash on Delivery. DERIVATIVE: contracts written between a City and a counter party such as a bank, insurance company or brokerage firms. Their value is derived from the value of some underlying assets such as Treasury Bonds or a market index such as LIBOR. Derivatives are used to create financial instruments to meet special market needs. Two contrasting reasons for the use of derivatives are: 1) to limit risk or transfer it to those willing to bear it; and, 2) to speculate about future interest rates and leverage in hope of increasing returns. DISCOUNT: the difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after a sale also is considered to be at a discount. 20 CITY OF LODI INVESTMENT POLICY DIVERSIFICATION: dividing investment funds among a variety of securities offering independent returns. DUE DILIGENCE: exercising of due professional care in the performance of duties. FACE VALUE: the principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity. FANNIE MAE: trade name for the Federal National Mortgage Association. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): federal agency established in 1933 that guarantees (within limits) funds on deposit in member banks and performs other functions such as making loans to or buying assets from members banks to facilitate mergers or prevent failures. FEDERAL FUNDS RATE: the rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. FEDERAL HOME LOAN BANKS (FHLB): government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (FOMC): consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: the central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. 21 CITY OF LODI INVESTMENT POLICY FIDUCIARY: an individual or group, such as a bank or trust company, which acts for the benefit of another party or to which certain property is given to hold in trust, according the trust agreement. FISCAL YEAR: an accounting or tax period comprising any twelve-month period. The City's fiscal year starts July 1. FREDDIE MAC: trade name for the Federal Home Loan Mortgage Corporation. FULL FAITH AND CREDIT: the unconditional guarantee of the United States government backing a debt for repayment. GENERAL OBLIGATION BONDS (GO's): bonds secured by the pledge of the municipal issuer's full faith and credit, usually including unlimited taxing power. GINNIE MAE: trade name for the Government National Mortgage Association. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FmHA mortgages. The term "pass-through" is often used to describe Ginnie Maes. HOLDER: the person or entity which is in possession of a negotiable instrument. INDEBTEDNESS: the obligation assumed by a borrower, guarantor, endorser, etc. to repay funds which have been or will be paid out on the borrower's behalf. INDENTURE: a written agreement used in connection with a security issue. The document sets the maturity date, interest rate, security and other terms for both the issue holder, issuer and, when appropriate, the trustee. INTEREST RATE: the interest payable each year on borrowed funds expressed as a percentage of the principal. INVESTMENT: use of capital to create more money, either through income-producing vehicles or through more risk -oriented ventures designed to result in capital gains. INVESTMENT PORTFOLIO: a collection of securities held by a bank, individual, institution, or government agency for investment purposes. IRREVOCABLE LETTER OF CREDIT: instrument or document issued by a bank guaranteeing the payment of a customer's drafts up to a stated amount for a specified period. It substitutes the bank's credit for the buyer's and eliminates the seller's risk. This 22 CITY OF LODI INVESTMENT POLICY arrangement cannot be changed or terminated by the one who created it without the agreement of the beneficiary. ISSUE PRICE: the price at which a new issue of securities is put on the market. ISSUER: any corporation or governmental unit, which borrows money through the sale of securities. JOINT AND SEVERAL OBLIGATION: a guarantee to the holder in which the liability for a bond or note issue may be enforced against all parties jointly or any one of them individually so that one, several or all may be held responsible for its payment. LAIF: trade name for California State Local Agency Investment Fund. LEGAL INVESTMENT: a list of securities in which certain institutions and fiduciaries may invest as determined by regulatory agencies. LEGAL OPINION: an opinion concerning the legality of a bond issue, usually written by a recognized law firm specializing in the approval of public borrowings. LIQUIDITY: a liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. MARKETABILITY: the measure of ease with which a security can be sold in the secondary market. MARKET ORDER: an order to buy or sell securities at the prevailing bid or ask price on the market. MARKET VALUE: the price at which a security is trading and could presumably be purchased or sold. MARKET VS. QUOTE: quote designates the current bid and ask on a security, as opposed to the price at which the last security order was sold. MASTER REPURCHASE AGREEMENT: a written contract covering all future transactions between the parties to repurchase—reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller -borrower. MATURITY: the date that the principal or stated value of debt instrument becomes due and payable. It is also used as the length of time between the issue date and the due date. 23 CITY OF LODI INVESTMENT POLICY MONEY MARKET: the market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. MORTGAGE BOND: a bond secured by a mortgage on property. The value of the property used as collateral usually exceeds that of the mortgage bond issued against it. NEGOTIABLE: a term used to designate a security, the title to which is transferable by delivery. Also used to refer to the ability to exchange securities for cash or near -cash instruments. NO PAR VALUE: a security issued with no face or par value. NON-NEGOTIABLE: a security whose title or ownership is not transferable through a simple delivery or endorsement. (See: Negotiable.) OBLIGATION: a responsibility for paying back a debt. OFFER: the price of a security at which a person is willing to sell. OFFERING: placing securities for sale to buyers. The offering usually states the price and terms. OPEN MARKET OPERATIONS: purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PAR VALUE: the stated or face value of a security expressed as a specific dollar amount marked on the face of the security; the amount of money due at maturity. Par value should not be confused with market value. PAYING AGENT: the agency, usually a commercial bank, which dispenses the principal and interest payable on a maturing issue. PORTFOLIO: the collection of securities held by an individual or institution. PREMIUM: the amount by which the price paid for a security exceeds the par value. Also, the amount that must be paid over the par value to call an issue before maturity. PRIMARY DEALER: a group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and 24 CITY OF LODI INVESTMENT POLICY Exchange Commission (SEC) -registered securities broker-dealers, banks, and a few unregulated firms. PRINCIPAL: the face or par value of an instrument. It does not include accrued interest. PRUDENT INVESTOR RULE: an investment standard adopted by the State of California in 1995. It states that a trustee shall consider the entire investment portfolio when determining the prudence of an individual investment; diversification is explicitly required within a portfolio; suitability of an investment is a primary determinant; and delegation of investment management is acceptable. PRUDENT MAN RULE: an investment standard established in 1630. It states that a trustee who is investing for another should behave in the same way as a prudent individual of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUOTATION (QUOTE): the highest bid to buy or the lowest offer to sell a security in any market at a particular time. RATE OF RETURN: 1) the yield which attainable on a security based on its purchase price or its current market price. 2) This may be the amortized yield to maturity on a bond the current income returns. RATING: the designation used by investors' services to rate the quality of a security's creditworthiness. Moody's ratings range from the highest Aaa, down through Aa, A, Baa, Ba, B, etc., while Standard and Poor's ratings range from the highest AAA, down through AA, A, BBB, BB, B, etc. REFINANCING: rolling over the principal on securities that have reached maturity or replacing them with the sale of new issues. The object may be to save interest costs or to extend the maturity of the loan. REGISTERED BOND: a bond whose principal and/or interest is payable only to that person or organization which is registered with the issuer. This form is not negotiable and it can be transferred only when endorsed by the registered owner. REPURCHASE AGREEMENT (REPO): agreement between a seller and a buyer, usually of U.S. Government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. The attraction of repos is the flexibility of maturities that makes them an ideal place to "park" funds on a very temporary basis. Dealers also arrange reverse repurchase agreements, whereby they agree to buy the securities and the investor agrees to repurchase them at a later date. REVENUE ANTICIPATION NOTES (RAN): short-term notes sold in anticipation of receiving future revenues. The notes are to be paid from the proceeds of those revenues. 25 CITY OF LODI INVESTMENT POLICY REVENUE BOND: a state or local bond secured by revenues derived from the operations of specific public enterprises, such as utilities. Such bonds are not generally backed by the taxation power of the issuer unless otherwise specified in the bond indenture. SAFEKEEPING: a service banks offer to customers for a fee, where securities are held in the bank's vaults for protection. SECURED DEPOSIT: bank deposits of state or local government funds which, under the laws of certain jurisdictions, must be secured by the pledge of acceptable securities. SECONDARY MARKET: a market made for the purchase and sale of outstanding issues following the initial distribution. SECURED DEPOSIT: bank deposits of state or local government funds which, under the laws of certain jurisdictions, must be secured by the pledge of acceptable securities. SECURITIES: investment instruments such as bonds, stocks and other instruments of indebtedness or equity. SECURITIES & EXCHANGE COMMISSION: agency created by Congress to protect investors in securities transactions by administering securities legislation. SERIAL BOND: bonds of the same issue, which have different maturities, coming due over a number of years rather than all at once. This allows the issuer to retire the issue in small amounts over a long period of time. SETTLEMENT DATE: date by which an executed order must be settled, either by buyer paying for the securities with cash or by a seller delivering the securities and receiving the proceeds of the sale for them. SINKING FUND: a reserve fund set aside over a period of time for the purpose of liquidating or retiring an obligation, such as a bond issue, at maturity. SPECIAL ASSESSMENT BONDS: bonds that are paid back from taxes on the property that is benefiting from the improvement being financed. The issuing governmental entity agrees to make the assessments and earmark the tax proceeds to repay the debt on these bonds. SPREAD: the difference between two figures or percentages. For example, it may be the difference between the bid and asked prices of a quote, or between the amount paid when bought and the amount received when sold. SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development; International Finance Corporation, or Inter -American Development Bank. 26 CITY OF LODI INVESTMENT POLICY TAX ANTICIPATION NOTES (TAN): short-term notes issued by states or municipalities to finance current operations in anticipation of future tax collections which would be used to repay the debt. TAX-EXEMPT BONDS: interest paid on municipal bonds issued by state and local governments or agencies is usually exempt from federal taxes, and in some cases, the state and/or local taxes. The interest rate paid on these bonds is generally lower than rates on non-exempt securities. TERMS: the conditions of the sale or purchase of a security. TREASURY BILL (T -BILL): a non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS AND NOTES: obligations of the U. S. government which bear interest. Notes have maturities of one to seven years, while bonds have longer maturities. TREASURY BONDS: long-term coupon bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: medium-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. TRUSTEE: a bank designated as the custodian of funds and the official representative for bondholders. UNDERWRITER: a dealer bank or other financial institution, which arranges for the sale and distribution of a large batch of securities and assumes the responsibility for paying the net purchase price. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one -reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: the annual rate of return on an investment, expressed as a percentage of the investment. YIELD CURVE: graph showing the term structure of interest rates by plotting the yields of all bonds of the same quality with maturities ranging from the shortest to the longest available. The resulting curve shows if short-term interest rates are higher or lower than long-term 27 CITY OF LODI INVESTMENT POLICY rates. For the most part, the yield curve is positive (short-term rates are lower), since investors who are willing to tie up their money for a longer period of time usually are compensated for the extra risk they are taking by receiving a higher yield. W Attachment F City of Lodi Budget and Fiscal Policies CALIFORNIA Adopted by the Lodi City Council ni,,,,,,m beF 18, 2020lune 2, 2021 Resolution 20210-274 City of Lodi Budget and Fiscal Polices Table of Contents 1. Purpose................................................................................................................................................ 3 2. Budget Development........................................................................................................................... 3 3. Budget Administration and Adjustment.......................................................................................... 5 4. Appropriation Limit........................................................................................................................... 7 5. Components of Fund Balance............................................................................................................ 7 6. Fund Balance Policies......................................................................................................................... 8 7. General Fund Reserves...................................................................................................................... 8 8. Measure L Fund Reserves................................................................................................................ 10 9. Special Revenue Fund Reserves...................................................................................................... 10 10. Enterprise Fund Reserves................................................................................................................ 13 11. Internal Service Fund Reserves....................................................................................................... 13 12. Capital Improvement Plan............................................................................................................... 14 13. Encumbrance Accounting................................................................................................................ 16 14. Pension Stabilization Policy............................................................................................................. 16 15. Review and Update........................................................................................................................... 18 2 1. Purpose The City's primary financial objective is to maintain the fiscal stability of the organization. The purpose of this policy is to establish guidelines for budget development, administration, and management as well as outline the City's fiscal policies in regard to cost recovery of various programs, target reserve levels in all funds and funding mechanisms for various programs. 2. Budget Development The budget will reflect the goals and priorities of the Council each year and make the best use of available funding within those goals and priorities. While goals and priorities may change from year to year, some basic tenets will apply to all budgets. Those tenets are reflected below. A. The General Fund budget will be balanced each year, without the use of reserves. Current year revenues will support current year expenditures. B. One-time revenue will be used to fund one-time expenditures or be placed in reserves. One-time revenue will not be used to fund on-going operations. C. Annual budgetary savings will be used to fund one-time expenditures or be placed in reserves. D. Funding for the Vehicle Replacement Fund shall be based upon annual depreciation schedules for vehicles and amounts will be reflected in departmental budgets. E. Funding for the Other Post -Employment Benefits (OPEB) Fund shall be no less than the Actuarial Required Contribution shown in the actuarial report and charged to each fund based upon ratio of current full time positions. All reserves in the Benefits Fund category in excess of 25% of estimated annual costs for benefits in this fund shall be budgeted for investment in the City's OPEB trust fund. F. Funding for Ca1PERS pension costs are as follows. Current year Normal Cost will be budgeted in each fund based on the estimated cost for employees in that fund. Current year Unfunded Accrued Liability (UAL) payments will be budgeted within each fund based on each fund's share of employee's within each class (Safety or Miscellaneous). For purposes of allocating UAL, employees funded by Measure L will be allocated to the General Fund. The City will budget for the monthly payment of the UAL but will make the annual UAL payment to 3 recognize the approximately 3.6% savings offered by Ca1PERS on this option. The Deputy City Manager will then use the UAL savings to make Additional Discretionary Payments (ADP) to Ca1PERS to further reduce the City's UAL. G. Funding for the Information Technology (IT) Replacement Fund shall be based upon the replacement cycle for equipment contained in the fund. H. Budgetary allotments for OPEB, Pension Stabilization and IT Replacement shall be reflected in the Non -Departmental Organization Unit for all General Fund units. a. Special Revenue, Enterprise and Internal Service funds will reflect budgetary allotments for these items within their respective funds. I. Fixed Assets a. Capital purchases of $10,000 or more, with a three year useful life, will be capitalized. b. Infrastructure additions or new construction of $10,000 or more will be capitalized. c. Vehicle purchases of any amount will be capitalized and useful lives will be determined based upon the Government Finance Officers Association Best Practices guidelines. d. Straight-line depreciation will be used for all depreciable assets. J. Library a. The Library is primarily funded through a transfer from the General Fund. Council will set the level of funding each year based upon available General Fund revenue. K. Parks, Recreation and Cultural Services (PRCS) a. Recreation and Community Center Programs i. The goal is to recover, on average, 40% of program costs from participants. Individual programs may be fully self-supporting while other programs may have a nominal cost recovery ratio. b. General Fund Transfer 4 i. The General Fund Transfer shall be determined by Council each year. The intent of the General Fund Transfer is to cover the costs associated with Parks Maintenance, PRCS administration, Debt Service and Hutchins Street Square Maintenance. L. Community Development a. The Community Development Department should primarily be self- supporting through fee revenue. b. A General Fund Transfer, determined by Council each year, will be designed to support the value of the general information function that the department provides and support at least one-half of the costs associated with a Youth Outreach function designed to divert youth involvement in gang activities. M. Enterprise Funds a. Enterprise funds will set fees and rates at levels that meet operating, debt service, capital and reserve needs. N. Internal Service Funds a. Internal Service funds will set rates and charges at levels that will ensure full recovery of costs each year. 3. Budget Administration and Adjustment 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 Council. The legal level of budgetary control is at the fund level. A. City Manager The City Manager, as the chief administrative officer, provides staff with general direction in the development and formulation of the City Manager's budget recommendations to Council. This includes: evaluating and assessing current and anticipated issues facing the City; determining the demand for services and facilities; identifying the concerns of the citizenry; assessing the current and projected financial condition of the City; and determining the final staffing recommendations. 5 B. Deputy City Manager/Internal Services Director The Deputy City Manager/Internal Services Director, as the chief financial officer, is responsible for budget development and day-to-day administration of adopted budgets. This includes: developing and issuing the budget instructions and calendar; advising the City Manager on budget policies and issues, including the recommended level of funding for each department within the General Fund; reviewing budget requests to ensure they are complete and accurate; preparing the preliminary budget recommendations for review by the City Manager; and publishing the approved budget, Capital Improvement Plan, and Budget in Brief documents. C. Department Directors Department directors are responsible for preparing their operating and capital budget requests in accordance with the City's budget instructions and managing their respective departments within their approved budget allotments. D. Failure to Adopt a Budget If the City 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 appropriation of funds: (1) Provide the City Manager with Continuing Resolution Authority to allow continued services at expenditure levels not greater than those in the prior year budget; or (2) Require staff to obtain prior approval for any expenditure (payment) of City funds. E. Public Record The budget document will be available on-line at the City's website (www.lodi.gov). Hard copies will be available for public review at the Lodi Public Library, City Hall and the Carnegie Forum. F. Budget Adjustments a. City Council approval is required for any increase in total appropriations within any individual fund. All budget adjustments that increase one fund's total appropriations, including net zero budget adjustments, must have City Council approval. b. The City Manager and Deputy City Manager have the authority to adjust appropriations within a fund, so long as total appropriations within the fund do not increase. This includes adjustments between departments within a fund. 0 c. Department directors have the authority to adjust appropriations within their department, so long as total appropriations within the department within the fund do not increase. 4. Appropriation Limit 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. 5. Components of Fund Balance A. Governmental Accounting Standards Board Statement Number 54 — Fund Balance Reporting and Governmental Fund Type Definitions outlines the requirements to report fund balance for governmental funds in specific classifications which create a hierarchy primarily based upon the extent to which a City is bound to constraints on the specific purposes for which the funds can be spent. Fund Balance consists of the following five categories: i. Non -spendable fund balance: amounts that cannot be spent because they are either (a) not in a spendable form (e.g., inventories or pre-paids) or (b) legally or contractually required to be maintained intact (e.g., endowment). ii. Restricted fund balance: amounts that can only be spent for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation (e.g., grants, gas tax, impact fees). iii. Committed fund balance: amounts that can be used for the specific purposes determined by formal action of the government's highest level of decision making authority. Committed fund balance can be changed only by the government taking the same formal action that initially created the commitment. (e.g., Council approved catastrophic or economic reserves). iv. Assigned fund balance: amounts that are intended to be used by the government for specific purposes. Intent can be established by either the governing body or delegated to a City official. v. Unassigned fund balance: the remaining amount of fund balance after all other fund balance classifications are accounted for and can be either positive or negative. Positive unassigned fund balance is available for any purpose. 7 6. Fund Balance Policies A. Committing Fund Balance The City Council is the City's highest level of decision making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution or ordinance approved by the City Council at a City Council meeting. For reporting purposes, the resolution or ordinance approving, modifying or rescinding a fund balance commitment must be approved prior to the last day of the fiscal year for which the commitment is to be reported. The amount of the commitment may be determined in a subsequent period. B. Assigning Fund Balance i. The City Council retains the authority to assign fund balance. C. Hierarchy of Fund Balance Use i. When multiple categories of fund balance are available for expenditure, the City will spend the most restrictive funds first before moving down to the next category with available funds in the following order: 1. Restricted 2. Committed 3. Assigned 4. Unassigned. 7. General Fund Reserves Maintaining reserves in the General Fund is critical to the successful and stable short- and long-term operations of the City. Adequate reserves in the General Fund ensure that the City is able to respond to emergencies and continue providing services to the citizens of Lodi. Adequate reserves also ensure that the City will have sufficient funds available to meet its operating, capital and debt service obligations. A. Catastrophic Reserve A Catastrophic Reserve is established within the General Fund. This reserve is established to maintain the ability of the City to meet operational expenses during times of declared emergency or major catastrophe. 8 1. It is recognized that during a time of emergency, the City will need to expend more resources than normal operations dictate to meet the community's need. In addition to an increased level of expenditure, the tax base of the City may be impaired after a major catastrophic event. ii. The amount of the Catastrophic Reserve shall be a minimum of 8% of annual General Fund revenues, including Operating Transfers. iii. The Catastrophic Reserve shall be exclusive of all other reserve amounts. iv. Council may draw on the Catastrophic Reserve only upon declaration of an emergency pursuant to the Lodi Municipal Code. v. If the Catastrophic Reserve falls below 8% of annual General Fund revenue, including Operating Transfers, the City Manager shall prepare a plan within three months of Council approval of the Comprehensive Annual Financial Report (CAFR) to restore the reserve balance to the 8% level within 12 months. vi. The Catastrophic Reserve is not intended for normal unanticipated expenditures and shall be funded before all other committed General Fund B. Economic Reserve i. An Economic Reserve is established within the General Fund. This reserve is established to maintain the City's economic viability and to meet seasonal cash flow needs. 1. It is recognized that economic cycles can cause significant fluctuations in the revenue streams of the City and the recovery from down cycles can be prolonged and affect service levels to the community dramatically. The Economic Reserve is intended to assist the City in maintaining service levels while revenues recover from a down economic cycle. ii. The amount of the Economic Reserve shall be a minimum of 8% of annual General Fund revenues, including Operating Transfers. iii. The Economic Reserve shall be exclusive of all other reserve amounts. iv. Council may draw on the Economic Reserve only upon adoption of a resolution of the City Council. 9 v. If the Economic Reserve falls below 8% of annual General Fund revenue, including Operating Transfers, the City Manager shall prepare a plan within three months of Council approval of the Comprehensive Annual Financial Report (CAFR) to restore the reserve balance to the 8% level within 12 months. vi. The Economic Reserve is not intended to be used to encourage development through the expansion of infrastructure to undeveloped areas of the City and shall be funded once the General Fund Catastrophic Reserve is fully funded. C. Should there be a lower fund balance presented in the proposed Budget, the City Manager shall first recommend use of Pension Stabilization Funds to offset Unfunded Accrued Liability (UAL) costs in the Fiscal year. The Deputy City Manager shall first pay all UAL costs with current year resources and shall only draw on the PSF in the final month of the Fiscal Year if in his/her opinion it is still estimated a draw is needed to meet the 16% total fund balance requirement. 8. Measure L Fund Reserves As a general purpose revenue, maintaining healthy reserves in the Measure L fund is critical for the same reasons as in the General Fund. Adequate reserves ensure that the City will continue to be able to provide Lodi citizens the services funded by Measure L in the long term. The Measure L Fund shall maintain the same 8% Catastrophic and 8 % Economic Reserves as outlined under Section 7 A. and Section 7 B. above. Measure L Funds shall not be subject to the City's Pension Stabilization Policy. By allocating UAL in the method described in Section 1 F. above, the General Fund will cover any UAL costs attributable to the employees funded by Measure L. As a new revenue stream beginning April 1, 2019, Measure L will take time to build up a reserve to comply with this policy. Initially, the fund balance will be built to the full 16% combined fund balance over a three year timeframe beginning with the FY 2019/20 budget and ending with FY 2021/22. Budgets from FY 2019/20 through FY 2021/22 shall include approximately 5.33% of revenue as a deliberate set aside to fund these reserve categories. 9. Special Revenue Fund Reserves Maintaining reserves in the City's Special Revenue Funds is also critical to the successful and stable short- and long-term operations of the City. Adequate reserves in the Special Revenue Funds, where appropriate, ensure that the City is able to carry out the purpose of the special revenue fund and ensure compliance with underlying laws and contractual 10 provisions associated with the funds. Additionally, bond rating agencies often evaluate a City's General Fund financial resilience by looking at reserves that may be drawn from Special Revenue funds to help support General Fund activities. A. Library i. Since the Library is primarily funded by a General Fund transfer, there is no need to duplicate reserves associated with the transfer amount within the Library Fund. ii. Reserves within the Library Fund should be maintained at a minimum level of 16% of annual Non -General Fund Transfer revenue. B. Parks, Recreation and Cultural Services (PRCS) i. Since a significant portion of PRCS revenue comes from a General Fund transfer, there is no need to duplicate reserves associated with the transfer amount within the PRCS fund. ii. Reserves within the PRCS Fund should be maintained at a minimum level of 16% of annual Non -General Fund Transfer revenue. C. Community Development i. The Community Development Fund is primarily self-supporting from fee revenue associated with development activities. The activities and financing of this fund are subject to wide fluctuations based upon the state of the development economy. Many of the fees assessed are collected ahead of services being provided. In the event of an economic downturn, the fund will have collected fees for services that have not yet been provided. As such, it is prudent to carry a large reserve to recognize that the reserve represents services that have not yet been provided. ii. Reserves within the Community Development Fund should be maintained at a minimum level of 50% of annual operating expenses, including transfers. D. Vehicle Replacement i. It is the City Council's goal to maintain reserves in the Vehicle Replacement equal to the accumulated depreciation of the vehicles in the fund. 11 1. The City Manager's proposed budget will recommend fully funding vehicle replacement funds equal to the annual straight-line depreciation of all vehicles in the fund. 2. Should Council elect not to fund the straight-line annual depreciation in the budget, the Deputy City Manager will report on the short fall in the fund within the budget document. 3. It is recognized that a shortfall currently exists and fully funding only one year of straight-line depreciation will result in a continued under -funding of vehicle replacements until the current vehicle stock is replaced. E. Information Technology Replacement i. It is the City Council's goal to maintain reserves in the Information Technology Replacement fund equal to the accumulated depreciation of the equipment in the fund. 1. The City Manager's proposed budget will recommend fully funding the Information Technology Replacement fund equal to the annual straight-line depreciation of all equipment in the fund. 2. Should Council elect not to fund the straight-line annual depreciation in the budget, the Deputy City Manager will report on the shortfall in the fund within the budget document. 3. It is recognized that a shortfall currently exists and fully funding only one year of straight-line depreciation will result in a continued under funding of Information Technology Equipment replacements until the current equipment stock is replaced. F. Other Special Revenue Funds i. All reserve balances in the following fund categories are restricted by the terms of the individual funds within the fund category: 1. Streets 2. Transportation Development Act 3. Community Development Block Grant 4. Debt Service 12 5. Public Safety Special Revenue 6. General Fund Capital Outlay 7. Parks Capital Outlay 8. Vehicle and Equipment Replacement 10. Enterprise Fund Reserves Maintaining reserves in the City's Enterprise Funds is also critical to the successful and stable short- and long-term operations of the City. Adequate reserves in the Enterprise Funds ensures that the City is able to carry out the purpose of the fund and ensures compliance with underlying laws and contractual provisions associated with the funds. Among other metrics, bond rating agencies review compliance with reserve policies in determining credit ratings. A. Electric Utility i. The City Council separately adopts a reserve policy for the Electric Utility and reviews the components of the policy every three years. As part of the annual budget process, Council is apprised of the level of reserves desired under that policy. B. Water Utility i. The City Council has adopted a financial model for the Water Enterprise that incorporates a reserve target of 25% of Operating Expenses. ii. Additionally, all funds collected in relation to PCE/TCE rates or settlements are restricted to use solely for the mitigation and remediation of those pollutants. C. Wastewater Utility i. The City Council has adopted a financial model for the Wastewater Enterprise that incorporates a reserve target of 25% of Operating Expenses. D. Transit i. All reserve funds in the Transit Enterprise are restricted as to use solely for transit purposes. 11. Internal Service Fund Reserves 13 Maintaining reserves in the City's Internal Service Funds demonstrates fiscal accountability and financial prudence. Adequate reserves in the Internal Service Funds ensure that the City has set aside sufficient funds to meet the future obligations it has committed to provide to its employees. Additionally, bond rating agencies review these funds and look favorably upon entities that are funding the long-term liabilities represented in the City's Internal Service Funds. A. Benefits Fund i. Reserves equal to 25% of the estimated annual cost of all benefits paid for by this fund. ii. The Deputy City Manager/Treasurer will invest all reserves in the fund, as reported in the prior fiscal year's CAFR, in excess of 25% of the estimated annual cost of all benefits paid in a current fiscal year upon completion of the prior fiscal year's CAFR. B. General Liability Insurance and Worker's Compensation Funds i. Reserves, at a minimum, equal to the 90% confidence level shown in the annual actuarial report, should be held locally and invested along with the City's pooled cash portfolio. ii. Funding at the 90% confidence level will be recommended in each annual budget. iii. The Deputy City Manager will review the status of the funds as of December 31 each year. If it is estimated that the full budget transfer is not needed to maintain the 90% confidence level in that year, he/she may reduce the budgeted transfer for that Fiscal Year for each fund prorated to each fund's budgeted contribution. C. Fleet Maintenance Fund i. Reserves equal to a minimum of 16% of Operating Expenses shall be held in the Fleet Maintenance Fund. 12. Capital Improvement Plan The City is committed to ensuring that all of its assets are operated, maintained and replaced in a manner that is the most prudent method of maintaining the public stewardship of those assets. To that end, the City will prepare and update annually a 14 Capital Improvement Plan (CIP) that encompasses those assets and looks out over a five- year lifespan. The first year of the five-year plan will be the current budget year. The Internal Services Department will be responsible for gathering the data for inclusion in the plan. A. CIP Projects Construction projects that are expected to cost $25,000 or more should be included in the CIP. Projects will be a combination of projects that repair, replace or enhance existing facilities and infrastructure and projects that expand or add to the City's existing fixed assets. Vehicles and equipment (rolling stock) are not to be included in the CIP. B. CIP Appropriations Approval of the CIP estimates beyond the current year budget do not constitute appropriation of the funds necessary or designation of the funds necessary to complete the project. Unspent current year budget allocations will automatically carryforward until project completion with the exception of unencumbered budgets in annual maintenance programs within the CIP. Upon completion of a project, unspent budget is returned to the fund until appropriated by future City Council action. Employee labor costs do not carry forward. C. Level of Budget Control Budget control for CIP projects will be at both the general ledger account level and the CIP project level. Budget allocated to one CIP project cannot be moved to another project within the CIP or to a non-CIP use without Council approval. Department Directors may transfer budget between line items within a project and fund as long as the total expenditure for the project or for the amount of the funding source specific to that project does not increase. D. Elements of the CIP i. Each project listed in the CIP will address the following items: • project description • project timeline • anticipated funding sources • estimated expenditures 15 • revenues and expenditures will be reflected by fiscal year over the five-year timespan of the CIP • estimated annual ongoing operating and maintenance costs 13. Encumbrance Accounting Encumbrances represent commitments to contracts not yet performed and orders not yet filled. They are used to control expenditure commitments for the year and to enhance cash management. Encumbrances do not represent expenditures for a period, only a commitment to expend resources. As a contract is completed, the budgetary encumbrance control accounts are liquidated or reduced and the actual expenditure is recorded. A. Lapsing Appropriations i. All unencumbered funds lapse at the end of the Fiscal Year with the exception of Capital Projects funds. Funds encumbered on contracts will roll into the next year. The Deputy City Manager shall review all contracts to determine what encumbered funds shall lapse due to contract completion. ii. Capital Projects — appropriated funds in the current fiscal year do not lapse until project completion or abandonment, whether encumbered or unencumbered. 14. Pension Stabilization Policy On- I J�pl��111 III � I I O This section replaces the policy adopted by Resolution 2017-219 and amends language and form for consistency with this policy. The policy is also updated and amended to factor in UAL funding for UAL costs attributable to positions funded by Measure L. A. Pension Stabilization Funding i. The Treasurer is authorized to invest all fund balance in excess of 16% in the General Fund (Pension Stabilization Resources, or PSR), based on the City's Comprehensive Annual Financial Report (CAFR) from the previous year in the City's Internal Revenue Code Section 115 Trust account with 16 Public Agency Retirement Solutions (PARS); and with Council consent use PARS trust funds to make: a. ADP to the Safety Plan of the City of Lodi held by CalPERS; or b. ADP to the Miscellaneous Plan of the City of Lodi held by Ca1PERS; until such time that the combined Market Value of Assets at the two Ca1PERS Plans plus the Market Value of Assets in the PARS fund exceed 80% of the combined `Entry Age Normal Accrued Liability" for both Safety and Miscellaneous or its most proximate equivalent as calculated by Ca1PERS in the annual Actuarial Reports. B. Allocation of Pension Stabilization Reserve Funding i. PSR investments made under this policy shall be accounted for by source fund and be made from all source funds in equal proportions to the actual allocation of Ca1PERS combined normal cost plus UAL cost within the Fiscal Year of the most recently approved CAFR. 1. The Measure L Fund shall not contribute to the Pension Stabilization Fund. ii. The base fund for determining the amount of proportional PSR for other funds shall be the City's General Fund (Fund 100). 1. If PSR for a particular fund is not adequate to cover the proportional requirement for that fund, the Treasurer shall prepare a report and recommendations to City Council to seek direction on PSR for that Fiscal Year. iii. Nothing in this policy shall allow the Treasurer to make PSR investments of any fund to have a projected year end fund balance below thresholds established in Section 7, 8, 9, 10, or 11 of this policy. 1. If proportional PSR investments would cause the projected year end fund balance of any fund to fall below thresholds established in the Fiscal Policies, the Treasurer shall prepare a report and recommendations to City Council within the scope of this policy. C. Budget Adjustments i. The City Manager is authorized to make any necessary budget adjustments to execute this policy in each Fiscal Year based on the calculated PSR. 17 D. Pension Stabilization Reporting i. The Treasurer shall prepare and present the funded statuses of the City's combined pension plans in the Annual Budget and the Mid -Year Budget report. 15. Review and Update These policies will be in place for the 204321/282 and 20282/234- fiscal years beginning with the FY 204321/282 budget. These policies will be reviewed and updated every two years in odd numbered years in conjunction with the approval of the annual budget. The next review cycle will be in conjunction with the FY 2024-2/2-24 budget. 18 ATTACHMENT G Project Title: Streets Project Planning Imunis Project Code: PWST-20001 #29 Section I: Description I District Nos: Citywide Projecti-engthl Normal Priority 5tafftime associated with project planning and oversight on projects that may arise that are not included in the budgeted CIP. Justificationlfactord'riving project Justificationtfactor driving project This i5 a public wall maintenance project. Additional Information Additional Information This i5 an annual contract. Of the $52,588.06 FY 1912)total,$27,588.06(Const.FxtLabor.MKjwas carried forward and $25,000(Contractsjwas FY 19120 budget. Section II Estimated Project Costa Expenditure PriorYears FY 20121 Estimate $ 25,000 $ 25,006 FY21122 Budget $ 25,000 S 25,000 FY 22723 FY 23724 FY 24125 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 FY 25726 Future Yrs $ 25,000 NIA Total $ 2d2,588 Section 11: Estimated Project Costs Total Capital Costs S 52,588 $ 25,666 NIA $ 202.568 Section III Expenditure Internal Staff Total Capital Coats Prior Years FY 20121 Estimate $ 25,00) 25,000 S 25.000 S 25.000 FY 21122 Budget $ 25,040 $ 25.000 F1'22723 $ 25,0)0 $ 25,011 FY 23124 FY 24125 $ 25,004 $ 25,000 S 25,000 $ 25,40) FY 25726 $ 25,000 $ 25,000 Future Yrs $ Total $ 175,000 S 175,000 Section III: Funding SourceslMethods of Financing Section IV Operating Budget Impact FundingSource(s) 303-MeasureKFund Total Project Financing Prior Years FY20121 Estimate $ 25,000 $ 25.000 S 25,000 S 25,000 FY 21122 Budget S 25.000 $ 25,006 FY 22723 $ 25,000 $ 25,000 I FY 23124 FY 24125 $ 25,000 $ 25,000 $ 25,000 $ 25.000 FY 25126 $ 25,000 S 25,000 Future Yrs S Total $ 175,000 S 175,400 Section IV Operating Budget Impact Operating Cost or (savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ $EE $ FY 2(W21 Estimate FY 21122 Budget FY 22123 FY 23124 FY 2.4125 FY 25126 4 Future Yrs Total I-tL $ S S $ - $ $ - $ $ $ S Maintenance Project Title: Reverse Frontage Wall Repair Program I Munis Project Code: PWST-0007 #30 Section 1: Descri pti on District Nos: Citywide Project Length Priority Normal This project is to repair damaged GM U (concrete masonry unit} reverse frontage wall throughout the City. Justificationlfactord'riving project This i5 a public wall maintenance project. Additional Information This i5 an annual contract. Of the $52,588.06 FY 1912)total,$27,588.06(Const.FxtLabor.MKjwas carried forward and $25,000(Contractsjwas FY 19120 budget. Section II Estimated Project Costa Expenditure PriorYears FY 20121 Estimate $ 25,000 $ 25,006 FY21122 Budget $ 25,000 S 25,000 FY 22723 FY 23724 FY 24125 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 FY 25726 Future Yrs $ 25,000 NIA Total $ 2d2,588 Contracts $ 52,588 Total Capital Costs S 52,588 $ 25,666 NIA $ 202.568 Section III Funding SourcesNathods of Financing Funding Sources} 303- Measure K Fund Total Project Financing Prior Years $ 52,588 $ 52,588 FY 20721 Estimate $ 25,000 $ 25,000 FY21122 Budget $ 25,000 $ 25,000 FY 22123 FY 23124 FY 24725 FY 25126 Future Yrs $ 25,060 $ 25,9{}0 $ 25,000 $ 25,000 NIA S 25.000 $ 25.000 $ 25,000 $ 25,060 NIA Total _ S 202,588 S 202,588 Section IV Operating Budget Impact Operating 'Cost or(savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ $ $ FY 20721 Estimate $ FY210 Budget $ FY 22+23 FY 23124 FY U25 S S $ FY 25126 Future Yrs S S Total $ $ $ Maintenance Project Title: 2020 Sidewalk Repair I Munis Project Code: PWST-0026 #35 Section 1:Description JR District Nos: Citywide iftojecti-engthl I Priority District Nos: Citywide Project Length Priority Normal ,annual contract for sidewalk and miscellaneous concrete repairs in the City. T he traffi c sig n als need to be maintained to be operation al for traffic and pedestrian safety. Justificationlfactor driving project Additional Information ,annual sidewalk m ai nten an ce work. Section II Estimated Project Costs Additional Information Prior Years FY 20121 Estimate $ 150,066 $ 15QDDD FY 21122 Budget $ 1HUG S 150,000 FY 22J23 FY 23724 FY 24125 $ 156,666 I $ 150,000 $ 150,000 S 150.000 S 15D,000 $ 150,000 FY 25126 Future Yrs $ 156,666 N1A $ 150,000 WA Total Contracts $ 137,790 $1,037,790 Total Capital Costs $ 137,790 $1,037,790 Section III Section 11 Funding5ource(s) 303- Measure K Fund Total Project Financing Estimated Project Costs FY 21122 Budget $ 150,006 S 150,000 FY 22+23 FY 23124 $ 150,600 1 $ 150,000 $ 150,000 $ 150,000 Expenditure Prior Years FY 20121 Estimate FY 21122 Budget $ 92,000 $ 8,000 $ 100,000 FY 22123 $ 92,000 $ 8,000 $ 100,000 FY 23124 FY 24125 $ 92,000 $ 92,060 $ 8,000 $ 8,000 $ 100,000 $ 100,000 FY 25126 Future Yrs $ 92,000 NIA $ 8,ODD NIA $ 100,000 NIA Total $ 655,825 $ 46.000 S 703;825 Contracts $ 103,825 $ 92,000 Internal Staff $ - $ 8,000 Total Capital Costs S 103,825 S 100,000 Section III Total $ $ $ Funding SouroWMethods of Financing Funding Source(s) 300- Street Fund 303- Measure K Fund 331- LTF-PedestrianGike Total Project Financing PriorYears $ 1,632 $ 72,193 $ 30,000 S 103,825 FY 20121 Estimate FY 21122 Budget FY 22123 FY 23124 FY 24125 FY251M Future Yrs NIA $ 70,000 NIA $ 30,00(] NiA S 100,000 NIA Total $ 1,632 $ 492.193 $ 210,000 $ 703,825 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 S 100,000 $ 100,00 S 100,066 S 100,000 $ 100,000 Section IV Operating Budget Impact Operating Cost or (savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ $ rs - FY 20121 Estimate FY 21122 Budget FY 27J23 FY 23724 FY 24125 FY25126 Future Yrs Total $ $ S - $ S S S S S $ Maintenance Project Title: 2020 Signal Preventative Maintenance I Munis Project Code: PWST-0025 #36 Section (:Description a in JR District Nos: Citywide iftojecti-engthl I Priority Normal Provide traffic m ai nten an ce servi ces including detector loop replacement, traffic signal cabinet and equipment repairlreplacement, signal pole and signal head repai rirepl acement, and other related items of work. Justificationtfactor driving project T he traffi c sig n als need to be maintained to be operation al for traffic and pedestrian safety. Additional Information Ofthe FY%20total, $47,790 (Const.Extl-abor}was carried forward, $81,000(contractsy and $9,404(Const.Intl-abor}were FY 1912D budgeted. Section II Estimated Project Costs Expenditure Prior Years FY 20121 Estimate $ 150,066 $ 15QDDD FY 21122 Budget $ 1HUG S 150,000 FY 22J23 FY 23724 FY 24125 $ 156,666 I $ 150,000 $ 150,000 S 150.000 S 15D,000 $ 150,000 FY 25126 Future Yrs $ 156,666 N1A $ 150,000 WA Total Contracts $ 137,790 $1,037,790 Total Capital Costs $ 137,790 $1,037,790 Section III Funding 5ourceslMethoda of Financing Funding5ource(s) 303- Measure K Fund Total Project Financing Prior Years FY 20721 Estimate $ 137,790 $ 150,660 $ 137,790 $ 150,000 FY 21122 Budget $ 150,006 S 150,000 FY 22+23 FY 23124 $ 150,600 1 $ 150,000 $ 150,000 $ 150,000 FY 24125 $ 156,606 $ 150,090 FY 25726 Future Yrs $ 150,000 NIA $ 150,000 NIA Total S 1,037,780 S 1,037,790 Section IV Operating Budget Impact OperatingCostor(saving9) Personnel Other Operating Costs Total Operating Impact Prior Years 5 $ S FY 20121 Estimate $ IS FY 21122 Budget FY 22+23 FY 23124 FY U25 S S $ - FY 25726 Future Yrs $ S Total $ $ $ Maintenance Project Title: Annual Pavement Crack Seal Program I Munis Project Code: PWST-0018 #40 Section 1:Deseription District Nos: 2, 3 Project Length District Nos: Citywide Project Length 7120-6l21 Priority Normal This project is to perform pavement crack seals on various streets in the City. J ustif icati onHactor driving project Justificationlfactor driving project To maintain a clean and inviting downtown atmosphere and to address increased cleaning needs resulting from the homeless population. This project is to perform pavement crack seals on various streets in the City. Additional Information This is an annual contract. Section II Estimated Project Costa Section 11 Prior Years $ 20,040 $ 20,000 FY 20121 Estimate $ 25,004 FY 21122 Budget $ 25,000 Estimated Project Costs FY 25126 Future Yrs $ 25,000 NIR Total Expenditure Contracts Total Capital Costs PriorYears $ 50,000 S 50,000 FY 20121 Eatimate $ 50,000 $ 50,400 FY 21122 Budget $ 50,000 $ 50,400 FY2223 $ 50,000 S 50.000 FY 2124 FY 24+25FY $ 50,000 $ 50,000 S 50,000 $ 50,000 25?26 Future Yrs $ 50,0CC NIA $ 50,000 NIA Total $ 350.000 S 350.000 Section III Funding Sources} 300 -Street Fund Total Project Financing Prior Years $ 20,00011 S 20,404 FY20121 Estimate $ 25,ODD 1 $ 25,004 Funding SourceslMethods of Financing FY 22123 FY 23124 FY 24125 $ 25,0001$ 257000T$ 25,0001$ $ 25,000 $ 25,400 $ 25,000 FY 25126 Future Yrs 25,000 1 NIA S 25,004 NIA FundingSource(s) 302 -Gas Tax 2103 305 -TDA -Streets Total Project Financing Prior Years' $ 50,000 $ 50,000 FY20121 Estimate $ 50,000 $ 50.090 FY21M Budget $ 50,000 $ Bon$ FY 22123FY $ SD,0DO 54,440 23124 FY 24125 $ 50,000 1 $ 50,000 $ 54,440 I S %ODO FY25126 Future Yrs $ 50,000 NA NA$ $ 50,444 NIA Total $ 250.000 140,000 $ 350.000 Section IV Prior Years $ $ FY 20121 Estimate FY21122 Budget Operating Budget Impact FY 25126 Future Yrs S - S Total S $ $ Operating Cost or (savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ $ S - FY20121 Estimate $ - FY 21122 Budget $ FY 22+23 S FY 23124 FY 24125 $ S FY250 Future Yrs $ Total $ $ $ $ Maintenance Project Title: Downtown Concrete Cleaning I Munis Project Code: PWST-0044 #42 Section I: Description District Nos: 2, 3 Project Length Priority Normal Cleaning of the downtown business area sidewalks. J ustif icati onHactor driving project To maintain a clean and inviting downtown atmosphere and to address increased cleaning needs resulting from the homeless population. Additional Information Section II Estimated Project Costa Expenditure Contracts Total Capital Costs Prior Years $ 20,040 $ 20,000 FY 20121 Estimate $ 25,004 FY 21122 Budget $ 25,000 FY 2=3 FY 23Y14 FY 24125 $ 25,040 $ 25,000 $ 25,00(} FY 25126 Future Yrs $ 25,000 NIR Total $ 170,000 $ 170,000 $ 25,0D0 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 NIA Section III Funding SourcWlYlethods of Financing Funding Sources} 300 -Street Fund Total Project Financing Prior Years $ 20,00011 S 20,404 FY20121 Estimate $ 25,ODD 1 $ 25,004 FY21122 Budget $ 25,000 S 25,040 FY 22123 FY 23124 FY 24125 $ 25,0001$ 257000T$ 25,0001$ $ 25,000 $ 25,400 $ 25,000 FY 25126 Future Yrs 25,000 1 NIA S 25,004 NIA Total 1 $ 170,000 $ 170,000 Section IV Operating Budget Impact Operating Cost or (savings) Personnel Other Operating Costs Total Operating Impact Fs Prior Years $ $ FY 20121 Estimate FY21122 Budget FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs S - S Total S $ $ S - $ - $ $ Is Project Title: Church 5t Parking Lot Improvements Imunis Project Code: #140 4135 Section I: Description District Nw:J 3 Project Length I District Nos: 3 Project Length 7122-6l24 JPriority Resurfacing the City parking lot at Church and Walnut including ADA improvements. Justificationlfactordriving project Justificationlfactor driving project The existing backup generator is undersize and unreliable in the event of power outrage. Need to install a properly sized one. This proj ectwi II resurface and improve ADA access to the parking lot. Ad d iti onal I of ormati on The budget is a rough estimate and may request morefunding if needed at timeof project award. Section II: Estimated ProjectCosts Expenditure Contracts Miscellaneous Total Capital Costs Prior Years FY 20721 Estimate $ $ 18,000 $ $ 2,000 S $ 20,000 FY21f22 FY 22123 FY 23724 FY 24725 Budget $ 160,011 $ 160.000 $ $ $ Section II: Estimated Project Costs Total $ 178,000 $ 2,000 $ $ $ 180,000 Expenditure Contracts IntemalStaff Total Capital Costs Prior Years FY 20121 Estimate $ $ S S FY21M Budget FY 22123 S - FY 23724 FY 24725 FY 25725 $ $ - S Future Yrs S Total $ 360,000 $ 40,000 $ 400.000 $ 360,001 $ 40,011 $ 400,000 Section III: Funding Sources7Methods of Financing Operating Budget Impact FundingSource(s) 431- Capital OutlaylGeneral Fund Total Project Financing Prior Years FY 20721 Estimate 5 $ 5 FY 21122 FY22fZ3 =L71 Budget $ 401,000 $ 400,000 S FY 24125 FY 25725 fi S $ - Future Yrs $ Total S 400.000 S 400.000 Section IV Operating Budget Impact $ 0peratingCostor(savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ $ r $ - FY 20121 Estimate FY 21722 FY 22123 Budget FY23124 FY 24+2'5 FY25725 S Future Yrs S Total $ $ $ S - $ S S S Project Title: Fire Station 3 Backup Generator Repl Imunis Project Code: GFCP-21005 #140 Section I: Description District Nw:J 3 Project Length Priority Replace Fire Station 3 backu p generator. Justificationlfactordriving project The existing backup generator is undersize and unreliable in the event of power outrage. Need to install a properly sized one. Additional Information The budget is a rough estimate and may request morefunding if needed at timeof project award. Section II: Estimated ProjectCosts Expenditure Contracts Miscellaneous Total Capital Costs Prior Years FY 20721 Estimate $ $ 18,000 $ $ 2,000 S $ 20,000 FY21f22 FY 22123 FY 23724 FY 24725 Budget $ 160,011 $ 160.000 $ $ $ FY 25725 Future Yrs Total $ 178,000 $ 2,000 $ $ $ 180,000 Section III: Funding SourcWMethods of Financing FundingSource(s) 431- Capital OutlaylGeneralFund Total Project Financing PriarYears FY 20121 Estimate $ $ 20,OCC S FY 21122 Budget 5 16C,000 FY 221M FY 23114 FY24FA FY25Y15 Future Yrs Total $ 180,000 180,000 Section IV Operating Budget Impact Operating Cost or (savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ - $ $ FY 20721 Estimate FY21M FY 22+23 FY 23124 Budget FY24125 FY 25728 Future Yrs Total $ $ $ # $ - $ - $ $ - $ $ Maintenance Project Title: Annual Pavement Maintenance Contract I Munis Project Code 1 #177 Section l: Description District Nos: 3,5_Projedl-engthl so days Priority District Nos: Citywide Project Le 7/21 tosj23Priority I Normal This project is to purchase asphalt concrete materials for street pavement maintenance Justificationlfactor driving project Additional Information This is an annual asphalt concrete material purchase program for PW staff to repair mi nor defects in street pavement $10,000 added for a water station at Beckman Park. Additional Information Section II: Estimated Project Costs New CIP submittal, prior contractwas under PWST-0022 FY 21122 FY 22123 FY 23724 FY 24125 Budget $ 10D,000 $ 100,000 $ - $ $ FY 25726 Future Yrs $ S Total $ 100,000 $ 100,000 Section III: Funding SouroWMethods of Financing Section II Estimated ProjectCosts FY 21122 Budget $ 100,000 $ 100,000 FY22123 FY23124 FY24125 $ $ $ Expenditure Contracts Total Capital Costs Prior Years FY 20121 Estimate FY 21122 Budget $ 100,400 S 100,000 FY 22123 FY 23724 FY 24125 $ 100,000 Is 14D,4DD $ 100,060 $ 100,000 $ 1M.M $ 100,000 FY 25726 Future Yrs $ 106,000 NIA $ 100,000 NIA Total $ FY 21122 FY 22123 FY 23124 FY 24125 Budget 4 $ 500,000 $ 500.000 S $ Section III 3 3 $ $ S - 3 Funding SourcealMethods of Financing FundingSource(s} 302 -Gas Tax 2103 305 -TDA -Streets Total Project Financing Prior Years $ $ $ FY 20721 Estimate FY 21122 Budget FY 22123 FY 23124 FY 24125 $ 100,000 $ 100,000 FY 25126 Future Yrs $ 100,000 N1A NA Total $ 300,000 $ 200,000 $ 100,004 $ 100,000 I $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ $ 100,000 NIA 3 'w000 Section IV Operating Budget Impact Operating Cost or(savings) Person nel 011ier Operating Costs Total Operating Impact Prior Years FY20721 Estimate $ $ $ $ FY21122 Budget $ - FY 22123 FY 23124 FY 24725 $ $ $ FY25726 FutureYm $ $ - Total $ $ $ - Project Title: Beckman & Vinewood Dog Park Improv Munis Project Cade: 1 #191 Section I: Description District Nos: 3,5_Projedl-engthl so days Priority I High Create a new accessible high ground fenced area for smalI dogs upto 25601 b and puppies only at the Beckman and Vinewood park dog areas. Scope of work wouId include concrete flat work, park benches, chain Iinkfen cing, ates, and turf and i rrig ation modifications. Justificationlfactor driving project The goal of the improvements is to provide a safe exercise area for the small dog population and thei r owners. Additional Information $10,000 added for a water station at Beckman Park. Section II: Estimated Project Costs Expenditure Prior Years FY 20721 _ Estimate Contracts $ - Total Capital Costs $ $ - FY 21122 FY 22123 FY 23724 FY 24125 Budget $ 10D,000 $ 100,000 $ - $ $ FY 25726 Future Yrs $ S Total $ 100,000 $ 100,000 Section III: Funding SouroWMethods of Financing FundingSource(s) Prior Years FY 20121 Estimate 432- Parks&Rec Capital 5 Total Project Financing $ S FY 21122 Budget $ 100,000 $ 100,000 FY22123 FY23124 FY24125 $ $ $ FY250 FutureYra $ - $ Total S 100,000 $ 100.000 Section IV Operating Budget Impact Operating Cost or (savings) Prior Years Person nel $ Other Operating Costs $ Total Operating Impact $ FY 20721 Estimate FY 21122 FY 22123 FY 23124 FY 24125 Budget 4 FY 25126 Future Yrs 3 Total $ $ $ 1 3 3 $ $ S - 3 Project Title: Animal Shelter Raaf Repair {temporary} Imunis Project Code: #207 Section I: Description #208 IDistrict Nos: 3 1 Project Lsngk Priority This is to provide temporary repairthe existirig Animal Shelter roof until the new shelter is constructed. 3 Project Length Justificationlfactor driving project This is to design and construction a new animal shelter for the Gity. The existing roof has several sofkeak spost that require reinforcing. The projectwill also waterproof the roof. Additional Information Justificationlfactor driving project Section II: Estimated Project Costs Expenditure Contracts Total Capital Costs Prior Years S $ FY 26721 Estimate S FY 21122 FY22123 FY 23124 FYZC25 FY25f26 Budget $ 50,000 S 50,000 S $ - $ S Future Yrs S Total $ 5%000 $ 5%000 Section III: Funding SourceslMeft The New Animal Shelter Design will cost $300,000 in FY 22 and $1300,600 in FY23. The New Animal Shelter Construction will wst$500,000 in FY23, $4,000,000 in FY 24, and $4,000,000 in FY25. Fundingsource(s) 431- Capital OutlaylGeneral Fund Total Project Financing Prior Years FY 26721 Estimate $ S S FY210 Budget $ 50,000 S 50,066 FY 22123 FY 23124 FY 24125 FY 25126 S S S $ - Future Yrs S Total $ 50,006 $ 5%000 Section ly Operating Budget Irnpact Prior Years $ S FY20121 Estimate S OperatingCostor(savings) Person nel Other Operating Costs Total Operating Impact Prior Years $ $ S FY 26721 Estimate $ FY 21122 FY22723 FY23124 FY 24725 FY 25726 Budget S $ $ $ - $ - Future Yrs $ - Total $ $ $ Project Title: New Animal Shelter Imunis Project Code: #208 Section l: Description District Nos: 3 Project Length 1priority This is to design and construction a new animal shelter for the Gity. Justificationlfactor driving project The existing animal shelter issmall and outdated. Additional Information The New Animal Shelter Design will cost $300,000 in FY 22 and $1300,600 in FY23. The New Animal Shelter Construction will wst$500,000 in FY23, $4,000,000 in FY 24, and $4,000,000 in FY25. Section II: Estimated Project Coats Expenditure Contracts Total Capital Costs Prior Years $ S FY20121 Estimate S FY 21122 Budget $ 30C.0110 S 300,000 FY 22123 $1,100,000 $1,100,006 FY 23124 $ 4,000,000 $ 4,000,000 FY24125 FY 25726 $ 4,00D,000 $ 4,000,000 S Future Yrs S Total $9 '000 9,600 S 9,460,600 Section III: Funding SourceslMethr FundingSource(sy 431- Capital OutlaylGeneral Fund Total Project Financing Prior Years $ $ FY 20121 Estimate FY21122 Budget $ 300:000 $ 300,000 FY22123 $ 1:100,000 $ 1,100,000 FY23124 $ 4,1JDD,000 $ 4,000,000 FY 24125 FY 25126 $ 4,00D,DDD $ 4,000,000 S Future Yrs $ Total S 9.400.000 S 9.400.000 S Section IV Operating Budget Impact Operating Cost or(savings) Person nel Other Operating Costs Total Operating Impact PriorYeara $ $ FS - FY 20721 Estimate S - FY21722 Budget $ - FY 22123 $ FY 23t24 4 $ FY =5 FY 25125 1 $ - $ Future Yrs 1S 1 $ - Total $ $ Project Title: City Hall Annex Bailer Replacement Munis ProjectCod e: #209 Section I: Description 1 District Nos: 3 1 Project Length Priority This is to replace the boiler in the City Hall Annex building. The boiler is used to provide heating in the building. Justificationlfactor driving project The existing boiler has reached its useful life. A com plete boiler fai I re may resu It i n damage to other equipment. Ad d iti onal I of ormati on Additional Information Section II: Estimated Project Costs Section II: Estimated Project Costs Expenditure Contracts Total Capital Costs Expenditure Contracts Total Capital Costs Prior Years FY 20121 Estimate $ $ $ FY 21122 Budget $ FY 27123 FY 23724 FY 24725 FY 25126 $ 160,000 S 160,000 S - $ $ Future Yrs $ Total S 160,400 S 160,000 Section III: Funding SourceslMeM FundingSource(s) 431- Capital OutlaylGeneral Fund Total Project Financing Funding5ource(s) 431- Capital dutlaylGeneral Fund Total Project Financing Prior Years FY 20121 Estimate 5 S S FY21122 Budget S FY 22723 FY 23124 FY 24725 FY 25126 $ S $ - Future Yrs $ Total Is 160,000 $ 160.000 $ 100,000 S 160,460 Section IV Prior Years $ $ $ - Operating Budget Impact FY 21122 Budget FY 22123 FY23124 FY 24725 Operating Cost or (savings) Person nel Other Operating Costs Total Operating Impact Prior Years $ $ $ - FY 20721 Estimate FY 21122 Budget FY22723 FY 23124 FY 24125 FY 25126 Future Yrs Total $ $ - $ - $ $ $ $ $ $ $ - $ - $ - $ $ - $ - $ $ Project Title: City Hall HVAC Duct Cleaning IMunis Project Code: 1 #210 Section I: Description I District Mos:1 3 1 Project Lengt Priority This is to hire a HVAC cleaning contractor to clean the air ducts in City Hall. Access port holes will be cut to make future cleaning easier. Justification/factor driving project The air ducts need to be cleaned periodically to prevent dust and contaminant accumulation. There are no records of previous air duct cleaning. Ad d iti onal I of ormati on Section II: Estimated Project Costs Expenditure Contracts Total Capital Costs Prior Years FY 20121 Estimate $ S $ FY 21122 Budget S FY 22123 FY 23124 FY 24125 FY250 $ 32,000 S 32,000 S $ S Future Yrs $ Total S 32,000 S 32,000 Section III: Funding SouroWMeft FundingSource(s) 431- Capital OutlaylGeneral Fund Total Project Financing Prior Years FY 20121 Estimate 5 S $ FY 2112 FY 22723 FY 23124 FY 24125 FY25126 Budget $ 32,000 $ $ 32,000 $ $ - $ Future Yrs $ Total $ 32,000 $ 32,000 Section IV Operating Budget Impact Operati n g C Dot or (a ay i n go) Personnel Other Operating Casts Total Operating Impact Prior Years $ $ $ - FY 20721 Estimate FY 21122 Budget FY 22123 FY23124 FY 24725 FY 250 Future Yrs Total $ $ $ - $ - $ $ $ $ - $ $ Project Title: Carnegie Forum Water Heater Replcmnt Imunis Project Code: #211 Section 1: Description District Nos: 3Project Lengt District Nos: 3 Project Length Priority This is to remodel the unused rad io eq u i pment room located on the north side of the Facilities building, into an office for the Facilities 5u peri ntendent. To replace the water heater in Camegie Forum. Juatificationlfactor driving project Juatificationlfactor driving project The superintendent is sharing open office space with the Facilities Workers. It is appropriate for this management position to have a private office. Ad d iti onal I of ormati on Exi sing water heater has exceed ifs design life and should be replaced before itfaiIs. Additional Information Section II: Estimated Project Costs Expenditure Contracts Total Capital Costs Prior Years FY 20121 Estimate 5 S Is FY 21122 FY 22123 FY 23124 FY24125 FY 25126 Budget $ 10,000 $ 10,000 I $ $ $ S Section II: Estimated ProjectCosts Total $ 10,000 $ 10,000 Section III: Funding SourceslMethr Expenditure Contracts Total Capital Costs Prior Years 5 S FY 20121 Estimate t Is FYN= Budget is 5,000 Is 5 DDD FY22123 FY23f24 FY 24125 FY 2"6 $ - $ - $ - S Future Yrs $ - Total $ 5.000 $ 6.000 Section III: Funding SourceslMeM $ 10,000 $ 10,000 Section IV Operating Budget Impact FundingSource(s) 431- Capital dutlaylGeneral Fund Total Project Financing PriarYears 5 S FY 20121 Estimate $ 1 FY 21122 FY =23 FY 23t24 FY 24125 FY 25126 Budget is 5,000 S 5,000 S S S S - Future Yrs $ Total $ 6.000 $ 5;000 Section IV Total $ Operating Budget Impact $ Operating Cost or(savings) Person nel Other Operating Costs Total Operating Impact Is Prior Years $ $ - FY 20121 Estimate FY 21122 Budget FY22123 FY 23124 FY 24125 FY 25126 Future Yrs Total $ $ E S - $ $ $ - $ - S $ Project Title: Facilities Office Remodel Imunis Project Code: 1 #212 Section I: Description District Nos: 3Project Lengt Priority This is to remodel the unused rad io eq u i pment room located on the north side of the Facilities building, into an office for the Facilities 5u peri ntendent. Juatificationlfactor driving project The superintendent is sharing open office space with the Facilities Workers. It is appropriate for this management position to have a private office. Ad d iti onal I of ormati on Section II: Estimated Project Costs Expenditure Contracts Total Capital Costs Prior Years FY 20121 Estimate 5 S Is FY 21122 FY 22123 FY 23124 FY24125 FY 25126 Budget $ 10,000 $ 10,000 I $ $ $ S Future Yrs S Total $ 10,000 $ 10,000 Section III: Funding SourceslMethr FundingSource(s) 431 -Capital OutlaylGeneral Fund Total Project Financing PriarYears FY20121 Estimate 5 S S FY210 Budget $ 10,000 S 10,040 FY22123 FY23124 FY240 FY 25126 S S S S - Future Yrs S Total $ 10,000 $ 10,000 Section IV Operating Budget Impact OperatingCostor[savingsj Personnel Other Operating Casts Total Operating Impact Is PriorYeara FY 20121 Estimate $ $ $ - FY21M FY =23 FY 23124 Budget $ - $ $ FY24125 FY 25126 Future Yrs Total $ $ $ - 3 $ $ Project Title: PD HVAC Replacement Imunis Project Cade: #213 Section I: Description District Nos: 3 Project Length Priority Priority This is to replace one of the three large HVAC units on the roof of the Police Department. This is to design and construct an outdoor gun range at the WSWPGF. Justificationlfactor driving project Juatificationlfactor driving project The existing HVAC unit has been repaired numeroustimes. Parts are no longer readily availablewhich inhibits repairefforls. Ad d iti onal I of ormati on save money in the long run. Revenue opportunities associated with outside agency use agreements may be possible Section II: Estimated Project Costs Expenditure Contracts Total Capital Costs Prior Years FY 20121 FY 21722 Estimate Budget $ S S S FY27M FY 23124 FY 24125 FY25126 Future Yrs Total $ 250,000 $ 250,000 $ 250,DDD $ S $ 5OD,O00 $ 2WOM $ - $ 500,000 Section III: Funding SourceslMethi FY 20121 FY 21122 FY22123 FY 23124 FYZQ25 FY25728 Future Yrs FundingSource(s) 431- Capital OutlaylGeneral Fund Total Project Financing Prior Years FY 20121 FY210 FYZM Estimate Budget $ $ 250,000 S S S S 750;000 FY 21124 S FY 24125 FY21126 Future Yrs Total $ 506,000 S 500,000 $ 250,0D0 $ 250,000 S S Section IV Operating Budget Impact $ 2,100,000 S 2,100,000 $ - $ Operati n g C oat or (a ay i n go) Person nel Other Operating Costs Total Operating Impact Prior Years $ $ $ - FY 2(1421 FY 21122 Estimate Budget FY 22123 FY 23124 FY24125 FY 25728 Future Yrs Total S $ - S - S - $ $ $ - $ - $ - $ Project Title: PD Training Facility {WSWPCF} Imunis Project Code: #214 Section I: Description District Nos: Project Lengthl Priority This is to design and construct an outdoor gun range at the WSWPGF. Juatificationlfactor driving project This facility will allow Lodi PD and other enforcement agencies to train on-site and save money in the long run. Revenue opportunities associated with outside agency use agreements may be possible Ad d iti anal I of ormati on The design of the training facility will cost $337,444 in FY 22. Phase 1 will cost $1,000,000 in FY 23 and $1,500,000 in FY 24. Phase 2 will cost$t3O0,000 in FY 23 and $600,000 in FY 24. Phase Swill cost$32UM in FY 23. Section II: Estimated Project Costs Expenditure Prior Years FY 20121 FY 21122 FY22123 FY 23124 FYZQ25 FY25728 Future Yrs Total Estimate Budget Contracts $ $ $ 337,440 S $ WA4O $ 1,925,000 S11,925,000 $ 2,100,000 S 2,100,000 $ - $ S 4,362,440 Total Capital Costs $ $ 4,362,440 Section III: Funding SourcealtlA*m FundingSource(a) Prior Years FY 2(N21 FY 21122 FY22123 FY 23124 FY 24125 FY 25725 Future Yrs Total Estimate Budget 431- Capital OutlaylGeneral Fund $ $ 337,440 $1,925,400 $ 2,100,000 1S 4,362440 Total Project Financing S S S 3VA4O $1,925,000 S 2,140,0DD 1 $ S S S 4,362,440 Section IV Operating Budget Impact OperatingCoat or(savings) Prior Years FY 2(X21 FY 21122 FY M23 FY 23124 FY U25 FY 25126 Future Yrs Total Estimate Budget Person nel $ S Other Operating Costs $ S Total Operating Impact S - $ S S 5 $ $ $ - S - Project Title: City Hall Annex Gun Range ImproWemen Munis Project Code: Misc Projects Imunis Project Code: High Improvement to the existing HVAG and Exhaust system in the City Hall Annex indoor gun range. #215 Section 1:Description The existing HVAC and exhaust system in the gun range is out of GALOSHA compliance and will need to be upgraded in order to provide clean air to the occupants. Additional Information District Not: Citywide Project Length Expenditure Contracts Total Capital Costs Priority FY 20121 Estimate This is a place hol d er for emergen cy repair work in FY 21122. FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total S 315,700 $ $ S $ S S 315,700 $ 15,700 $ 30D,ODD S 15,700 S 300,000 Section III: Funding SourceslMaft J u stif i cati onlf actor driving project Prior Years FY 20121 FY 21122 FY 22123 FY MM Estimate Budget $ $ 15,700 $ $ 30D,000 rS $ 15700 $ 300,000 S S FYZ4125 FY25126 Future Yrs Total $ 15,700 $ 300,000 5 S S S 315,700 Section IV Operating Budget Impact Operating Cost or(savings) Person nel Other Operating Casts Total Operating Impact PriarYears $ $ rs FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total Estimate Budget $ $ $ $ $ $ $ $ $ $ Additional Information Section II: Estimated ProjectCosts Expenditure Contracts Total Capital Costs Prior Years 5 S FY 20121 Estimate $ - FY 21122 Budget $ 25,000 $ 25,000 FY 22123 FY 23724 FY 24125 FY25Y16 $ 25,009 Future Yrs Total $ 25,0(10 $ 25,000 $ 25,000 $ 125,000 $ 25,000 $ 25,000 $ 25,000 $ 25 DDD $ $ 125,000 Section III: Funding SourceslWM FundingSource(s) 431- Capital OutlaylGeneral Fund Total Project Financing PriarYears 5 S FY 20121 Estimate $ FY 21122 Budget $ 25,000 S 25,OM FY22123 FY 23124 $ 25,000 FY 24125 $ 25,000 FY 25728 $ 25,OCC Future Yrs Total $ 25,ODO $ 125,000 S 25,000 $ 25,000 $ 25,000 S 25,000 $ - $ 125,000 Section IV Operating Budget Impact Operating Cost or(savings) Personnel Other Operating Costs Total Operating Impact Prior Years $ $ FS FY 20121 Estimate FY 21122 Budget FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total $ $ $ - $ - $ $ $ - S $ 3 - Project Title: City Hall Annex Gun Range ImproWemen Munis Project Code: #216 Section I: Description District Nos: 3 Project Leng4 Priority High Improvement to the existing HVAG and Exhaust system in the City Hall Annex indoor gun range. Justificationlfactor driving project The existing HVAC and exhaust system in the gun range is out of GALOSHA compliance and will need to be upgraded in order to provide clean air to the occupants. Additional Information The Lodi Police Foundation, a California non-profit corporation, hasoverthe pastseveral years donated funding forseveral equipment purchasesfor use bythe Lodi Police Department. Thesedonations are integral tothe Lodi Police Department's needsthat are not metthrough thegeneral fund. The Lodi Police Foundation is donating $200,0OOto the Cityto offset HVAC and Exhaustsystem equipment, construction materials, and laborfor the City Hall Annex indoor gun rangefor use bythe Lodi Police Department. Section II: Estimated Project Costa Expenditure Contracts Total Capital Costs Prior Years $ S FY 20121 Estimate FY 21122 Budget FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total S 315,700 $ $ S $ S S 315,700 $ 15,700 $ 30D,ODD S 15,700 S 300,000 Section III: Funding SourceslMaft Funding Source(s) 100 -Facilities 431- Capital OutlaylGeneral Fund Total Project Financing Prior Years FY 20121 FY 21122 FY 22123 FY MM Estimate Budget $ $ 15,700 $ $ 30D,000 rS $ 15700 $ 300,000 S S FYZ4125 FY25126 Future Yrs Total $ 15,700 $ 300,000 5 S S S 315,700 Section IV Operating Budget Impact Operating Cost or(savings) Person nel Other Operating Casts Total Operating Impact PriarYears $ $ rs FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total Estimate Budget $ $ $ $ $ $ $ $ $ $ RESOLUTION NO. 2021-164 A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING THE CITY OF LODI FINANCIAL PLAN AND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2021 AND ENDING JUNE 30, 2022; APPROVING THE 2021/22 APPROPRIATIONS SPENDING LIMIT; APPROVING JOB SPECIFICATIONS AND SALARY RANGES FOR THREE NEW POSITIONS; APPROVING THE FISCAL YEAR 2021/22 INVESTMENT POLICY; AND FURTHER APPROVING THE FISCAL YEAR 2021/22 TO 2022/23 BUDGET AND FISCAL POLICIES WHEREAS, the City Manager submitted the 2021/22 Financial Plan and Budget to the City Council on May 14, 2021; and WHEREAS, the 2021/22 Financial Plan and Budget was prepared in accordance with the City Council's goals, budget assumptions, and policies; and WHEREAS, the City Council conducted public budget review meetings on May 4, 11, and 25, 2021; and WHEREAS, the City Council is required to adopt the Appropriations Spending Limit for 2021/22; and WHEREAS, the Appropriations Spending Limit and the annual adjustment factors selected to calculate the Limit are part of the Financial Plan and Budget; and WHEREAS, the City's five-year Capital Improvement Program is presented and included in the Fiscal Plan and Budget document; and WHEREAS, the City of Lodi Investment Policy is adopted each year; and WHERAS, the City of Lodi Budget and Fiscal Policies are adopted every two years in odd - numbered years. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lodi as follows: That the 2021/22 Financial Plan and Budget, as proposed by the City Manager be approved as follows: General Fund Budget Police Department 27,157,950 Fire Department 16,392,350 Internal Services Department 5,799,340 Parks, Rec & Cultural Services 5,233,260 Non -Departmental 4,902,740 Public Works Department 3,175,320 Library (from Measure L) 1,663,200 City Manager 810,290 City Attorney 706,690 City Clerk 704,500 Economic Development 528,490 Total General Fund 67,074,130 Other Funds Department Electric Utility 85,326,720 Wastewater Utility 19,471,630 Water Utility 12,706,150 Transit 12,612,620 Employee Benefits Internal Service 9,661,250 Parks, Rec & Cultural Services 9,480,710 Streets 6,228,250 Self-Insurance Internal Service 6,048,360 Community Development 2,947,940 Capital Outlay Fund 4,126,440 Fleet Services 2,051,090 Vehicle & Equipment Replacement 1,866,030 Library 1,666,850 Debt Service 1,658,720 Community Improvement Grants 1,442,070 Special Revenue & Grants 839,800 Trust and Agency 76,000 TDA 30,000 Grand Total 245,314,760 2. That the funds for the 2021/22 Financial Plan and budget are appropriated in the document on file in the City Clerk's Office; and 3. That the Appropriations Spending Limit be increased by $8,043,163 from the 2020/21 level of $116,864,705 to the 2021/22 level of $124,907,868 in accordance with the calculations on Attachment A; and 4. That staffing position additions and deletions are approved as shown in the table below effective July 1, 2021; and Job Title Department +/- Legal Secretary City Attorney +1 Management Analyst Internal Services +1 Sr. Customer Service Rep Internal Services +1 Utility Billing Specialist Internal Services -1 Network Administrator Internal Services +1 Code Enforcement Officer Police +1 Police Records Clerk Police +1 Asst/Assoc Civil Engineer Public Works +1 CDD Program Specialist Community Development +1 Administrative Assistant Community Development -1 Sr. Permit Technician Community Development +1 Permit Technician Community Development -1 Sr. Administrative Clerk PRCS +1 Administrative Clerk PRCS -1 Net Increase +6 5. That the City Council approves the salary range as indicated below and approves the job description as written for the Senior Customer Service position on Attachment B; and Position: Step 0 1 Step 1 1 Step 2 1 Step 3 1 Step 4 Sr Customer Service Representative 1 $ 43,038.81 1 $ 45,190.69 1 $ 47.450.211 $ 49,822.73 J $ 52,313.98 6. That the City Council approves the salary range as indicated below and approves the job description as written for the CDD Program Specialist position on Attachment C; and Position:I Step 0 1 Step 1 1 Step 2 1 Step 3 1 Step 4 Community Development Program Specialist 1 $ 61,702.69 1 $ 64,787.82 1 $ 68,027.21 1 $ 71,428.57 1 $ 75,000.00 7. That the City Council approves the salary range as indicated below and approves the job description as written for the Senior Permit Technician position on Attachment D; and Position: Step 0 Step 1 Step 2 Step 3 Step 4 Senior Permit Technician $ 53,925.66 1 $ 56,622.581 $ 59,453.68 $ 62,426.47 $ 65,547.78 8. That the City Council approves the FY 2021/22 Investment Policy as provided in Attachment E; and 9. That the City Council approves the FY 2021/22 to 2022/23 Budget and Fiscal Policies as provided in Attachment F; and 10. That the City Council approves the City's five-year Capital Improvement Project Program as follows: City of Lodi Capital Improvement Project Program FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 21,506,8011 24,668,170 26,025,430 23,815,750 29,462,000 1 19,452,000 Dated: June 2, 2021 I hereby certify that Resolution No. 2021-164 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 2, 2021, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi NOES COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None �.�/zi`ryryL JENNIFE CUSMIR City Clerk 2021-164 ATTACHMENT A 2021-22 FINANCIAL PLAN AND BUDGET APPROPRIATIONS SPENDING LIMIT CITY OF LODI SENIOR CUSTOMER SERVICE REPRESENTATIVE Attachment B May 2021 Job descriptions are intended to present a broad and general range of duties, which includes, purpose, responsibilities, and scope of work. Job descriptions are not intended to reflect all duties performed within the job. DEFINITION Under general supervision, provides a variety of general office support services related to cashiering, customer service, research and analysis related to customer service, utility billing, and/or other functions as assigned; this position may involve extensive public contact; performs related duties as assigned. DISTINGUISHING CHARACTERISTICS This is an advanced journey level and lead worker classification that is distinguished from Customer Service Representative II in that this class performs the more complex customer service tasks that require analysis, judgement, and decision-making. In addition to complex Customer Service Representative duties this class will be performing Utility Billing functions, including daily tasks and serving as back-up as needed. The position may also exercise technical oversight or indirect supervision over other positions, and provide training, and mentorship to lower -level positions. Receives general supervision from higher-level personnel. EXAMPLES OF DUTIES Duties may include, but are not limited to the following: Provides technical information and instruction regarding policies and procedures to other City departments and staff; Serves as a lead to lower level staff, providing guidance, responding to questions, and directing work activities and duties; may act as the Supervisor in their absence; Reviews own work and work of others for accuracy, completeness, format and compliance with policies and procedures; Performs difficult or complex customer service office support work in assigned function; Resolves the most complex problems involving customer statements, fees, payments and other service related problems; Provides training on customer service and utility billing functions; Provides assistance to utility billing by completing reports, service orders, and other duties as assigned; Serves as a backup to utility billing and/or customer service duties when needed; Attachment B Responds to questions on utility billing, customer service, and other City financial transactions; Acts as liaison to field personnel to initiate or resolve consumption related issues, meter mis-reads and other exceptions related to billing and delinquent accounts; Receives utility bill payments over a public counter or through the mail; Receives revenue for licenses, permits, recreation fees, and other City revenue accounts; Performs other duties related to the operation of the department and the city, including additional duties that enable the department and City to meet the diverse needs of its community. MINIMUM QUALIFICATIONS: Knowledge of: Customer service principles and practices; Utility rate structures and schedules; Working principles of electric and water meters; Research and analysis techniques; Department policies and procedures pertaining to utility billing and collection; Basic math skills; Written and oral communication skills, including spelling, grammar and punctuation, and letter writing; Standard office equipment, including personal computer, and computer software such as Microsoft Word, Excel, Outlook and financial applications/programs. Ability to: Conduct research, perform analysis of data, recommend solutions; use independent judgment and decision-making skills; organize and maintain accurate financial and customer records; Explain policies and utility rates to customers; learn and apply approved general ledger chart of accounts; Establish and maintain effective working relationships with those contacted in the course of work, often in stressful situations; Use good judgment and customer service skills in responding to customer requests or complaints; Communicate clearly and concisely; Prioritize work and coordinate several activities; Attachment B Organize and oversee the work of others; provide input into the duties and performance of staff; Understand and carry out oral and written instructions; interact with the public and staff efficiently and courteously; communicate clearly and concisely. EDUCATION AND EXPERIENCE: Any combination and education that would provide the required knowledge and ability is qualifying. A typical combination is: Education: Equivalent to completion of high school. Associate degree from an accredited college or university in Finance, Accounting, Business Administration, Public Administration or comparable degree is highly desirable. Experience: Two years of experience performing a variety of customer service tasks related to utility billing, service disconnects and reconnects, high/low bill investigation, customer inquiry resolution, and collecting, recording and balancing cash OR one year as a Customer Service Representative II with the City of Lodi. WORKING CONDITIONS: Environmental Conditions: Office environment Physical Conditions: Essential and marginal functions may require maintaining physical condition necessary for sitting, standing bending and stooping for prolonged periods of time; using various office equipment including a computer screen and keyboard and occasionally lifting up to 30 pounds. *FLSA Status: NON-EXEMPT CITY OF LODI PROGRAM SPECIALIST Attachment C MAY 2021 Job descriptions are intended to present a broad and general range of duties, which includes, purpose, responsibilities, and scope of work. Job descriptions are not intended to reflect all duties performed within the job. DEFINITION Provides responsible analytical and journey -level program support; Performs highly skilled, specialized professional activities related to the development, implementation and administration of programs related to housing, community and homeless services and projects requiring independent decision-making, judgment and initiative; oversees the support functions of the assigned program. DISTINGUISHING CHARACTERISTICS Distinguished from Administrative Assistant position in that the latter is responsible for all internal administrative support functions for a department. SUPERVISION EXERCISED AND RECEIVED Receives supervision from higher-level staff. May be responsible for direct and indirect supervision of lower -level staff. ESSENTIAL AND MARGINAL FUNCTIONS Duties may include, but are not limited to the following: Plans, coordinates and administers assigned project or program with department or citywide impact; Confers with department heads, division managers or other professional staff concerning the administrative needs and requirements related to the program or project; Represents the program to members of the public, businesses, other City departments, and various outside public and private agencies; Monitors program activity and objectives to assure compliance with State or Federal administrative regulations and program guidelines; Monitors and evaluates program effectiveness and outcomes; implements program policies and procedures; helps develop guidelines, forms and related documents; Researches, analyzes and reviews grant opportunities; compiles information for preparation of grants, contracts and agreements; Implements, monitors and prepares reports on conduct and performance of grants in coordination with Division Manager; Provides excellent customer service to those contacted in the course of work; Produces various reports, charts, graphs, presentations and high-level correspondence related to program or project; Individual duties, tasks, and projects may vary or differ based on Departmental assignment and operational needs; Attachment C CITY OF LODI Page 2 of 3 Program Specialist Monitors, reviews, analyzes legislation, and provides legislative updates and impacts to management staff; Develop recommendations and conduct meetings with management staff pertaining to assigned program area; Establish and maintain record keeping, filing and tracking system; Check and process invoices; May supervisor, review, or coordinate the work of others; Performs other duties related to the operation of the department and the City including additional duties that enable the department and City to meet the diverse needs of its community. QUALIFICATIONS Knowledge of: English usage, spelling, grammar and punctuation; Modern office methods, procedures and equipment, including word processing spreadsheet, database and scheduling software for personal computers; Applicable laws and administrative regulations relating to the program area to which assigned; Principles and practices of public administration and governmental finance, budgeting, and accounting; Procurement methods; Research techniques, methods and procedures; Methods and practices of modern office management; Principles and practices of program management and administration; Technical report writing; Principles of supervision, training and performance evaluation. Ability to: Analyze administrative, operational and organizational problems, evaluate alternatives and reach sound conclusions; Collect, evaluate and interpret varied information and data, either in statistical or narrative form; Attachment C CITY OF LODI Page 3 of 3 Program Specialist Interpret and apply laws, regulations, policies and procedures; Communicate effectively, orally and in writing; Prepare clear, concise and complete reports and other written materials; Maintain accurate records and files; Coordinate and prioritize multiple projects and meet critical deadlines; Exercise sound independent judgment within established guidelines; Use initiative and independent judgement; Work independently; Establish and maintain effective working relationships with those contacted in the course of the work. EDUCATION AND EXPERIENCE Any combination of experience and education that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities are: Education: Equivalent to the completion of high school supplemented by college courses in business or public administration or a closely related field. Bachelor's degree preferred. Experience: Four years of progressively responsible professional -level administrative experience. LICENSES AND CERTIFICATES Possession of a valid Driver's License (Class C) issued from the California Department of Motor Vehicles. WORKING CONDITIONS: Environmental Conditions: Office environment Physical Conditions: Essential and marginal functions may require maintaining physical condition necessary for sitting, standing bending and stooping for prolonged periods of time; using various office equipment including a computer screen and keyboard and occasionally lifting up to 30 pounds. *FLSA Status: NON-EXEMPT CITY OF LODI SENIOR PERMIT TECHNICIAN Attachment D MAY 2021 Job descriptions are intended to present a broad and general range of duties which includes, purpose, responsibilities, and scope of work. Job descriptions are not intended to reflect all duties performed within the job. DEFINITION: Under general direction, responsible for, organizing, and coordinating the day-to-day operations of the Permit Center within the Community Development Department; including, supervising the work and activities of Permit Center staff engaged in providing information and direction to the public on building issues, processes, and requirements; providing technical expertise in building, plan review administration; performs related duties as assigned. DISTINGUISING CHARACTERISTICS This is an advanced journey level and first line supervisor classification that is distinguished from the Permit Technician in that this class performs the more complex Permit Technician tasks that require analysis, judgement, and decision-making. May be responsible for functional, technical, or direct supervision over lower level staff. Receives general supervision from higher level personnel. EXAMPLES OF DUTIES: Duties may include, but are not limited to the following: Coordinates the activities and functions of the permit/customer center as required with other departments and divisions within the City; Responds to inquiries from staff and the general public and addresses any concerns or complaints; Reviews policies, procedures, regulations, reports and legislations to determine operational changes; Implements new technology; oversees enhancements/improvements to existing technology and programs; maintains and improves processes to enhance work efficiency and the delivery of services; Develops and oversees the distribution of information handouts, brochures and website materials related to the Permit/Customer Center; Performs a full range of technical duties in support of the Community Development Department's building services division, including but not limited to, conformance with the City's building requirements and processes, minor plan checks, issue minor permits, Attachment D CITY OF LODI Senior Permit Technician Pale 2 of 4 and review and approve plans and accompanying documents on over-the-counter permits; Operates and maintains the division's automated permit tracking system; Calculates permit and mitigation fees, and provides fee estimates as requested; Access, enter, and update computerized plan check data entry and tracking systems, and provides information to the public relating to the status of projects and permits; Supervises, trains and evaluates subordinates and assigned staff; Preparesreports, memos, and letters pertaining to development review and permitting; Collects, records, and balances permit -related monetary transactions; Researches, compiles, and analyzes data for special projects and various reports; Builds, and maintains positive working relationships with co-workers, other City employees and the public using principles of good customer service; Performs other duties related to the operation of the department and the city, including additional duties that enable the department and City to meet the diverse needs of its community. MINIMUM QUALIFICATIONS: Knowledge of: Applicable codes and laws enforced by the Building Inspection Division; Basic office practices and procedures, including filing and the operation of standard office equipment; Basic business data processing principles and the use of and operation of a personal computer; Basic real property descriptive terminology and concepts; building materials and modern methods of building construction; Customer service principles and practices; Principles of supervision, training and performance evaluation; Land use regulations; Building plans, blueprints, site plans, maps and civil drawings; Attachment D CITY OF LODI Senior Permit Technician Page 3 of 4 Business arithmetic, including the calculation of areas and fees. Ability to: Process permit applications for new construction and building modifications; Assist in coordinating the permitting process with building official, inspectors, planners, engineers, fire inspectors, other City staff, County, State and other outside agencies; Calculate and collect building permit fees accurately; Read and interpret blueprints, plans, codes, ordinances and procedures; Communicate clearly, concisely and effectively both verbally and in writing; Communicate tactfully and effectively with the public; Operate office equipment including a computer and associated software programs; Organize and maintain accurate records and office files; Use and operate centralized telephone equipment, personal computer, related software and peripheral equipment; Organize and oversee the work of others; provide input into the duties and performance of staff; Establish and maintain cooperative and effective relationships with those contacted during the course of work; Use good judgement and customer service skills in responding to customer requests or complaints. EDUCATION AND EXPERIENCE: Any combination of experience and education that would likely produce the qualifying knowledge and ability. A typical combination is: Education: Equivalent to the completion of high school including completion of College course work in related field. Experience: Four years of responsible public agency experience reviewing and processing commercial, industrial, or residential building permits; Some lead or supervisory experience is desirable. LICENSES AND CERTIFICATES: Attachment D CITY OF LODI Senior Permit Technician Page 4 of 4 Possession of a valid Driver's License (Class C) issued from the California Department of Motor Vehicles. ICC Certification as a permit technician. WORKING CONDITIONS: Physical Conditions: Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, and over the telephone. Essential and marginal functions may require maintaining physical condition necessary for sitting, standing, bending, stooping, kneeling, reaching, pushing and pulling; occasionally lift and carry reports and records that typically weigh less than 20 pounds. Environmental Conditions: Office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances; may work in the field and occasionally be exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, mechanical and/or electrical hazards, and hazardous physical substances and fumes; may interact with upset staff and/or members of the public. *FLSA Status: NON-EXEMPT ATTACHMENT E CITY OF LODI INVESTMENT POLICY Fiscal Year 2021/22 Resolution 2021- TABLE OF CONTENTS 1.1 PURPOSE.......................................................................................................................................1 1.2 POLICY...........................................................................................................................................1 1.3 SCOPE...........................................................................................................................................1 1.4 PRUDENT INVESTOR STANDARD................................................................................................1 1.5 PUBLIC TRUST..............................................................................................................................2 1.6 ETHICS AND CONFLICTS OF INTEREST......................................................................................2 1.7 OBJECTIVES..................................................................................................................................3 1.8 LIMITING MARKET VALUE EROSION............................................................................................4 1.9 STATEMENT OF INVESTMENT POLICY........................................................................................4 1.10 DELEGATION OF AUTHORITY....................................................................................................4 1.11 MONITORING AND ADJUSTING THE PORTFOLIO.....................................................................4 1.12 INTERNAL CONTROL..................................................................................................................5 1.13 REPORTING.................................................................................................................................5 1.14 AUTHORIZED INVESTMENTS.....................................................................................................6 1.15 BANKS AND QUALIFIED BROKER/DEALERS.............................................................................7 1.16 PURCHASE OF CDs FROM LOCAL INSTITUTIONS....................................................................8 1.17 SAFEKEEPING AND COLLATERILIZATION................................................................................8 1.18 ADMINISTRATION.......................................................................................................................9 2.1 INTERNAL CONTROLS - GENERAL..........................................................................................11 2.2 INTERNAL CONTROL PROCEDURES.......................................................................................12 2.3 TREASURY FUNCTION RESPONSIBILITIES............................................................................13 2.4 BROKER/DEALER QUESTIONNAIRE........................................................................................14 2.5 BROKER DEALER CERTIFICATION..........................................................................................16 GLOSSARY.......................................................................................................................17 CITY OF LODI INVESTMENT POLICIES 1.1 PURPOSE The purpose of this policy is to state the City's policies for the investment of surplus funds in the City treasury in a prudent and systematic manner conforming to all state and local statutes governing the investment of public funds. Safety of principal is given the highest priority. In addition, this statement is intended to formalize investment -related activities to provide the highest investment return with maximum security while meeting daily cash flow demands. The ultimate goal is to protect the City's pooled investment cash while enhancing the City's economic status. 1.2 POLICY It is the policy of the City of Lodi to invest public funds in a manner which will provide a sound investment return with maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statues governing the investment of public funds. The City of Lodi's investment policy has three objectives: (1) protect principal, (2) provide for liquidity needs, and (3) obtain the most reasonable rate of return possible within the first two objectives. The overarching theme of this policy is to utilize the "prudent investor" standard (see discussion below). This affords a broad range of investment opportunities so long as the investment is prudent and permissible under current state and local law. 1.3 SCOPE The investment policy applies to all funds under the direct authority of the City Treasurer of the City of Lodi, including but not limited to the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, Internal Service Funds and Trust and Agency Funds. All funds are accounted for in the City's Comprehensive Annual Financial Report. Investments of debt proceeds held by bond trustee are governed by the provisions of the debt agreements. Proceeds of bonds will be invested in accordance with the ordinance, resolution, indenture or other agreement governing the issuance of the bonds. 1.4 PRUDENT INVESTOR STANDARD The prudent investor standard requires all those involved in the investment process to act as if the assets in the portfolio are their own. By the prudent investor standard, the rules outlined in this policy, and other applicable state and local laws and regulation, are binding constraints to be considered in taking any action. The City Council, Treasurer and all persons authorized to make investment decisions on behalf of the City are trustees and therefor fiduciaries subject to the prudent investor standard. The "prudent investor" standard, is in accordance with Government Code Section 53600.3 which states "...all governing bodies of local agencies or persons authorized to CITY OF LODI INVESTMENT POLICIES make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." It is the City's full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. However, it is realized that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized, that in a well -diversified investment portfolio, occasional measured losses are inevitable due to economic, bond market or individual security credit analysis. These occasional losses must be considered within the context of the overall investment program objectives and the resultant long tem rate of return. The City Treasurer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner, appropriate action is taken to control adverse developments, and the relieved parties acted at all times in a fashion that met their fiduciary obligation to the City of Lodi. 1.5 PUBLIC TRUST All participants in the investment process shall act as fiduciaries and custodians of public funds. Investment officials shall recognize the portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. 1.6 ETHICS AND CONFLICTS OF INTEREST As a minimum standard, the City Treasurer and all other personnel authorized to make investment decisions are governed by The Political Reform Act of 1974 regarding disclosure of material financial interests as well as Government Code Section 87103. The City Treasurer and all other personnel authorized to make investment decisions shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair the ability to make impartial investment decisions. The Treasurer is CITY OF LODI INVESTMENT POLICIES required to make known to the City Manager and City Council any conflicts of interest that may arise immediately upon becoming aware of a potential conflict. The Treasurer and other key finance personnel are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPCC). 1.7 OBJECTIVES Funds of the City will be invested with the following objectives in priority order: Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Lodi shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. The City of Lodi will diversify its investments by security type and institution. Financial institutions and broker/dealers will be prequalified and monitored as well as investment instruments they propose. The City shall seek to preserve principal by mitigating two types of risk: Credit Risk — Defined as the risk of loss due to failure of the issuer of a security. Credit risk shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City's cash flow. Market Risk — Defined as the market value fluctuations due to overall changes in the general level of interest rates. Market risk shall be mitigated by limiting the weighted average maturity of the City of Lodi s investment portfolio to three and one-half years, the maximum maturity of any one security to five years, and structuring the portfolio based on historic and current cash flow analysis, thereby eliminating the need to sell securities prior to maturity. Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. This will be accomplished through maturity diversification in accordance with California Government Code 53635 and the State Local Agency Investment Fund with immediate withdrawal provision. Yield: CITY OF LODI INVESTMENT POLICIES The City's investment portfolio shall be designed with the objective of attaining a sound yield (rate of return) through budgetary and economic cycles, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio. The City will attempt to obtain the most reasonable yield possible when selecting an investment, provided the criteria for safety and liquidity of the total portfolio are met. 1.8 LIMITING MARKET VALUE EROSION It is the general policy of the City to limit the potential effects from erosion in market values by adhering to the following guidelines: All immediate and anticipated liquidity requirements shall be addressed prior to purchasing investments. Maturity dates for investments shall coincide with significant cash flow requirements, where possible, to assist with cash requirements at maturity. All securities shall be purchased with the intent to hold all investments to maturity. However, economic or market conditions may change, making it in the City's best interest to sell or trade a security prior to maturity. 1.9 STATEMENT OF INVESTMENT POLICY The City of Lodi's Investment Policy shall be adopted by Resolution of the City Council. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidly and yield, and its relevance to current law and financial and economic needs. Any amendments to the policy shall be forwarded to the City Council for approval. 1.10 DELEGATION OF AUTHORITY The Treasurer is designated by the authority of the legislative body as the investment officer of the City as provided for in Government Code Section 53607 and is responsible for the investment decisions and activities of the City. The Treasurer will develop and maintain written administrative procedures for the operation of the investment program, consistent with this investment policy. The Treasurer may delegate certain day to day functions as necessary to execute this policy and manage the portfolio in the most efficient and effective manner. The Treasurer shall hereafter assume full responsibility for such transactions until such time as the delegation of authority is revoked, and shall make a quarterly report of such transactions to the legislative body. 1.11 MONITORING AND ADJUSTING THE PORTFOLIO CITY OF LODI INVESTMENT POLICIES The Treasurer will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments, and will adjust the portfolio accordingly. It is the City's full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. 1.12 INTERNAL CONTROL The Treasurer will establish a system of written internal controls, which will be reviewed annually by the City's independent audit firm. The controls will be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions. 1.13 REPORTING The Treasurer will submit a quarterly investment report to the City Council, in accordance with Government Code Section 53646, to disclose the following information: • A listing of individual securities held at the end of the reporting period by authorized investment category. • Notation of Securities purchased within the reporting period. • Percentage of the portfolio represented by each investment category. • Institution. • Average life and final maturity of all investments listed. • Coupon, discount or earnings rate. • Par value or cost of the security • Current market value of securities with maturity in excess of 12 months and the source of this valuation. • Ability of the city to meet its expenditure requirements for the next six months or provide an explanation of why sufficient funds will not be available as required by Gov. Code 53646 (b)(3). The quarterly investment report to the Lodi City Council, acting legislative authority, as endorsed by Government Code Section 53646, will be in addition to the Treasurer's monthly report and accounting of all receipts, disbursements and fund balances. 5 CITY OF LODI INVESTMENT POLICIES 1.14 AUTHORIZED INVESTMENTS The City will invest surplus funds not required to finance the immediate needs of the City as provided in California Government Code Sections 16429.1, 53601, 53601.6, 53601.8, 53635, 53635.2, 53638 and 53684. In selecting authorized investments consideration must be given to credit ratings, maturities, current makeup of the City's portfolio and collateralization of applicable instruments. A list of eligible instruments is provided below. Permitted Investments Maturity Maximum % of Minimum Portfolio Quality Requirements U.S. Treasury Obligations (Bills, notes and 5 years 100% None bonds) US Government Agency Securities and 5 years 100% None Instrumentalities Bankers Acceptances 180 days 40% None Certificates of Deposit 5 years 100% None Negotiable Certificates of Deposit 5 years 30% None Commercial Paper 270 days 30% Credit Rating of P1/A1 or Al +/F1 or F1+ by Moody's, S&P or Fitch California State Local Agency Investment Indefinite 100% None Fund Passbook Deposits Indefinite 100% None Mutual Funds and Money Market Mutual N/A 20% Multiple Funds Requirements per Gov't Code Medium Term Corporation Notes 5 years 30% A-/A3/A- by Moody's, S&P, or Fitch Joint Powers Authority Pool Indefinite 30% Multiple (Funds held at Requirements NCPA shall not per Gov't count to this limit) Code Certificate of Deposit Account Registry Indefinite 30% None Service (CDARS) CITY OF LODI INVESTMENT POLICIES Supranational Obligations 5 years 30% AA-/Aa3/AA- by Moody's, S&P, or Fitch Municipal Securities (50 States or 5 years 100% None California Local Agencies) Investments not listed in this section, including those otherwise authorized by California Government Code are ineligible investments for the City of Lodi. Ineligible investments include, but are not limited to, common stocks, long term (over five years in maturity) notes and bonds, swaps, options, derivatives, repurchase and reverse repurchase agreements and swap agreements. Pooled funds invested for the City by entities such as California State Local Agency Investment Fund, CaITRUST, NCPA, or other Joint Powers Authority Pools may invest in swaps, options, derivatives or repurchase and reverse repurchase agreements as permitted by California Government Code and the respective policy guidelines of the investing agency. 1.15 BANKS AND QUALIFIED BROKER/DEALERS The Treasurer will consider the credit worthiness of institutions in selecting financial institutions for the deposit or investment of City funds. These institutions will be monitored to ensure their continued stability and credit worthiness. The City shall conduct investment transactions only with qualified banks, savings and loans, and broker/dealers. The Treasurer shall investigate dealers who wish to do business with the City to determine that they are adequately capitalized, have no pending legal action against the firm or the individual broker and that they participate in markets appropriate to the City's needs. Third parties in this category will be required to provide their most recent Consolidated Report of Condition ("call report") prior to transacting business with the City and at the request of the Treasurer during the course of conducting business. The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will be maintained of approved security brokers/dealers selected for credit worthiness. The City shall send a copy of the current investment policy to all broker/dealers approved to do business with the City. Written and signed confirmation, on company letterhead, of receipt of this policy shall be considered evidence that the dealer understands the City's investment policies and intends to sell the City only appropriate investments authorized by this policy and all applicable state and federal laws and regulations. CITY OF LODI INVESTMENT POLICIES In addition, all financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Treasurer with the following: • Audited financial statements • Proof of Financial Industry Regulatory Authority registration. • Trading Resolution • Proof of State Registration • Certification of having read the City of Lodi's investment policy and depository contracts. An annual review of the financial condition and registration of qualified bidders will be conducted by the Treasurer. The City will not normally use more than three qualified dealer/brokers to obtain bids. 1.16 PURCHASE OF CDs FROM LOCAL INSTITUTIONS To the extent reasonable and within the limits specified above, the Treasurer may purchase a Certificate of Deposit, up to the amount fully insured by the Federal Deposit Insurance Corporation (FDIC), from each bank and savings and loan institution located within the corporate limits of the City to promote economic development and as a statement of support for those institutions maintaining an office in Lodi. These investments are limited to those institutions which offer Certificates of Deposit insured by the Federal Deposit Insurance Act and have a Community Reinvestment Act Rating of satisfactory or above. To aid in the diversification of the portfolio, additional Certificates of Deposit in amounts up to fully insured FDIC limits, may be purchased from local institutions provided the investment has the safety, liquidity and a rate of return comparable to that offered from LAIF at the time the original investment is made. Additional Certificates of Deposit may be purchased from a single institution so long as the amounts are fully collateralized as described in Section 1.17. 1.17 SAFEKEEPING AND COLLATERILIZATION All investment securities purchased by the City will be held in third -party safekeeping by an institution designated as primary agent. The custodian will hold these securities in a manner that establishes the City's right of ownership. The primary agent will issue a safekeeping receipt to the City listing the specific instruments, rate, maturity and other pertinent information. Deposit type securities (i.e., certificates of deposit) will be collateralized. CITY OF LODI INVESTMENT POLICIES Collateral for time deposits in savings and loans will be held by the Federal Home Loan Bank or an approved Agent of Depository. If collateral is government securities, 110% of market value to the face amount of the deposit is required. Promissory notes secured by first mortgages and first trust deeds used as collateral require 150% of market value to the face amount of the deposit. An irrevocable letter of credit issued by the Federal Home Loan Bank of San Francisco requires 105% of market value to the face amount of the public deposit. The collateral for time deposits in banks should be held in the City's name in the bank's Trust Department, or alternately, in the Federal Reserve Bank. The City may waive collateral requirements for deposits which are fully insured up to limits prescribed by the FDIC. The amount of securities placed with an agent of depository will at all times be maintained in accordance with California Government Code 53652. 1.18 ADMINISTRATION The following administrative policies will be strictly observed: Payment: All transactions will be executed on a delivery versus payment basis which should be done by the City's safekeeping agent. Bid: A competitive bid process in which no less than three competitive bids are obtained, when practical, will be used to place all investment purchases. Typically when soliciting bids, the Treasurer or Supervising Budget Analyst will specify through email with a blind copy to qualified brokers the following: maturity date, credit quality, eligible investment category, amount available to invest and security names the City will not consider due to overconcentration. The open window for providing offers shall be a minimum of one hour and the City's review period shall be no more than one hour in order to minimize the risk of market price fluctuations between security offer and the City's decision to purchase. Securities not matching the requirements for the portfolio will not be considered in that solicitation. The Treasurer has the right to refuse all bids and reissue a solicitation. If less than three qualifying responses are received, the Treasurer may choose to select from the responses received or to reissue the solicitation. Wire Transfers: CITY OF LODI INVESTMENT POLICIES All wire transfers will be initiated by the Supervising Budget Analyst and approved by the Treasurer. The City's utilizes electronic dual controls on all wire transfers requiring that approvers cannot be initiators and vice versa. Pre -formatted wire transfers will be used to restrict the transfer of funds with preauthorized accounts only. Confirmations: Receipts for confirmation of a purchase of authorized securities should include the following information: trade date; par value; maturity; rate; price; yield; settlement date; description of securities purchased; net amount due; third -party custodial information. Confirmations of all investment transactions are to be received by the Treasurer not later than the business day immediately following the trade. Same day confirmations are preferred. Pooled Cash: The City will consolidate into one bank account and invest on a pooled concept basis. Interest earnings will be allocated monthly based on current cash balances. Bond Proceeds: The City will comply with applicable federal tax law and regulations in connection with the investment of bond proceeds. 10 CITY OF LODI INVESTMENT POLICY 2.1 INTERNAL CONTROLS - GENERAL Through this system of internal control, the City is adopting procedures and establishing safeguards to prevent or limit the loss of funds invested or held for investment due to errors, losses, misjudgments and improper acts. Internal control procedures are not intended to address every possible situation but are intended to provide a reasonable and prudent level of protection for the City's funds. Objectives: These procedures and policies are established to ensure: • the orderly and efficient conduct of investment practices, including adherence to investment policies • the safeguarding of surplus cash • the prevention or detection of errors and fraud • the accuracy and completeness of investment records • the timely preparation of reliable investment reports General Control Policies: The following policies are to be used to safeguard investments: • Organization A description of responsibilities and procedures for the investment of City funds, lines of authority and reporting requirement will be maintained. Personnel Only qualified and assigned personnel will be authorized to approve investment transactions; make and liquidate investments; maintain investment records; and maintain custody of negotiable instruments. Personnel assigned responsibility for the investment of City surplus funds will maintain their professional qualifications by continued education and membership in professional associations. Segregation of functions No one having general ledger functions will have responsibility for the investment of City funds. • Safekeeping All securities are to be held in the name of the City of Lodi. The City will contract with a third party, usually a bank, to provide custodial services and securities safekeeping. Although a cost is involved, the risk of losing physical securities outweighs the fees involved. Preference should be given to custodial services which include reporting 11 CITY OF LODI INVESTMENT POLICY services as part of their service, including marking the portfolio to market value, performance evaluation and internal reporting • Reconciliation of records Regular and timely reconciliation will be made of detailed securities records with the general ledger control account. • Performance evaluation Performance statistics will be maintained and reported monthly as provided in the Investment Policies. 2.2 INTERNAL CONTROL PROCEDURES Assigned Responsibilities: a. City Council responsibilities: • Adoption of City's investment policies by Resolution • Review and evaluation of investment performance. b. Treasurer duties and responsibilities: • Formulating, recommending and implementing the City's investment policies • Approves all investment transactions prior to execution of any transaction • Approves broker/dealer arrangements. c. Supervising Budget Analyst duties and responsibilities: • Recommends broker/dealer arrangements • Recommends investments • Executes investment transactions • Maintains records of all investment transactions • Prepares quarterly investment report for City Council review • Prepare fiscal year end investment reports for City's independent audit firm review • Review's financial condition of the City's depositories (banks) at least annually for compliance with collateralization requirements under government code and financial condition and reports results to City Treasurer. d. Financial Services Manager duties and responsibilities: • Maintains general ledger control account and duplicate records of investment transactions • Verifies investment records and reconciles detailed securities records with general ledger control accounts. 12 CITY OF LODI INVESTMENT POLICY e. City's independent audit firm: • Will review the City's investment policies and procedures and make appropriate recommendations and findings as to compliance and steps to be taken to improve internal controls. 2.3 TREASURY FUNCTION RESPONSIBILITIES FUNCTION RESPONSIBILITIES 1. Recommendations: • Recommends broker/dealer arrangements Supervising Budget Analyst • Recommends investments Supervising Budget Analyst 2. Authorization of Investment Transactions • Formal investment policy prepared by Treasurer • Formal investment policy approved by City Council • Investment transactions approved by Treasurer • Broker/deal arrangements approved by Treasurer 3. Execution of Investment Transactions Supervising Budget Analyst 4. Recording of Investment Transactions • Recording of transactions in Treasurer's records Supervising Budget Analyst • Recording of transactions in Accounting records Financial Services Manager 5. Safeguarding of assets and records • Maintenance of Treasurer's records Supervising Budget Analyst • Reconciliation of Treasurer's records to accounting records Financial Services Manager • Review of (a) financial institution's financial condition, (b) safety, liquidity, and potential yields Supervising Budget Analyst of investment instruments, and (c) reputation and financial condition of investment brokers • Periodic reviews of collateral Supervising Budget Analyst • Review and evaluation of performance City Council 6. Preparation of reports Supervising Budget Analyst 7. Annual review of investment portfolio for City's Audit Firm conformance to City's investment policy 13 CITY OF LODI INVESTMENT POLICY 2.4 BROKER/DEALER QUESTIONNAIRE BROKER/DEALER QUESTIONNAIRE CITY OF LODI TREASURER'S OFFICE P. O. Box 3006 Lodi, California 95241 1. Name: 2. Branch Address: 3.Telephone No.: 4. Primary Account Name: Title: Telephone No.: 5. Is your firm a primary dealer in US Government Securities? Y/N 6. Identify the personnel who will be trading with or quoting securities to our agencies employees: Name Title Telephone No. 7. National Headquarters Address: Corporate Contract: Telephone No.: Compliance Officer (Name, Address, Telephone): 8.What was your firm's total volume in US Government and Agency securities trading last calendar year? 9.Which securities are offered by your firm? ( ) US Treasury ( ) Commercial Paper ( ) US Treasury Notes ( ) BAs Domestic ( ) US Treasury Bonds ( ) BAs Foreign ( ) Agencies (specify) ( ) Repurchase Agreements ( ) Negotiable CD's ( ) Reverse Repurchase Agreements 10. List your personnel who have read the City of Lodi Treasurer's Investment Policy. 11. Please identify your public -sector clients in our geographical area who are most comparable to our government with which you currently do business. 12. Have any of your clients ever sustained a loss on a securities transaction arising from misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, please explain. 14 CITY OF LODI INVESTMENT POLICY 13. Have any of your public -sector clients ever reported to your firm, is officers or employees, orally or in writing, that they sustained a loss exceeding 10% of the original purchase price in a single year on any individual security purchased thorough your firm? Explain. 14. Has your firm ever been subject to a regulatory or state/federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees ever been so investigated? Explain. 15. Has a public sector client ever claimed in writing that your firm or members of your firm were responsible for investment losses? 16. Please include samples of research reports that your firm regularly provides to public -sector clients. 17. Please explain your normal delivery process. Who audits these fiduciary systems? 18. Please provide certified financial statements and other indicators regarding your firm's capitalization. 19. Describe the capital line and trading limits that support/limit the office that would conduct business with our government. 20. What training would you provide to our employees and investment officers? 21. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? As of this date, does your firm comply with the guidelines? Has your capital position every fallen short? By what factor (1.5x, 2x, etc.). Does your firm presently exceed the capital adequacy guidelines, measure of risk? Include certified documentation of your capital adequacy as measured by the Federal Reserve standards. 22. Do you participate in the Securities Investor Protection Corporation (SIPC) insurance program? If not, why? 23. What portfolio information do you require from your clients? 24. What reports, confirmations and paper trail will we receive? 25. Enclose a complete schedule of fees and charges for various transactions. 26. How many and what percentage of your transactions failed last month? Last year? 27. Describe the precautions taken by your firm to protect the interest of the public when dealing with governmental agencies as investors. 28. Is your firm licensed by the State of California as a broker/dealer? Y/N 15 CITY OF LODI INVESTMENT POLICY 2.5 BROKER/DEALER CERTIFICATION CERTIFICATION ATTACHEDCERTIFICATION hereby certify that I have personally read the latest adopted resolution of investment policies and objectives of the City of Lodi Treasurer and the California Government Codes pertaining to the investments of the City of Lodi, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out to transaction conducted between our firm and the City of Lodi. All sales personnel will be routinely informed of the City of Lodi's investment objectives, horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City of Lodi of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire. SIGNED TITLE DATE COUNTERSIGNED DATE (Person in charge of government securities operations) NOTE: Completion of Questionnaire is only part of the City of Lodi's Certification process and DOES NOT guarantee that the applicant will be approved to do business with the City of Lodi. On this day of 20 before me the undersigned Notary Public personally appeared ( ) personally known to me ( ) proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) subscribed to the within instrument and acknowledged that executed it. State of County of WITNESS my hand and official seal. Notary's Signature 16 CITY OF LODI INVESTMENT POLICY GLOSSARY AGENT: an agent is a firm or individual which executes orders for others or acts on behalf of others (the principal). The agent is subject to the control of the principal and does not have title to the principal's property. The agent may charge a fee or commission for this service. AGENCIES: federal agency securities and/or Government-sponsored enterprises. AGREEMENT: an agreement is an arrangement or understanding between individual traders to honor market quotes within predetermined limits on dollar amount and size. AMORTIZATION: straight-line reduction of debt by means of periodic payments sufficient to meet current interest charges and to pay off the debt at maturity. ARBITRAGE: a technique used to take advantage of price differences in separate markets. This is accomplished by purchasing securities, negotiable instruments or currencies in one market for immediate sale in another market at a better price. ASKED: the price at which securities are offered. AT THE MARKET: a trading term for the buying or selling of securities at the current market price rather than at a predetermined price. BANKERS ACCEPTANCE (BA): a bearer time draft for a specified amount payable on a specified date. An individual or business seeking to finance domestic or international trade draws it on a bank. Commodity products collateralize the BA. Sale of goods is usually the source of the borrower's repayment to the bank. The bank finances the borrower's transaction and then often sells the BA on a discount basis to an investor. At maturity, the bank is repaid and the investor holding the BA receives par value from the bank. BASIS PRICE: price expressed in yield -to -maturity or the annual rate of return on the investment. BEAR MARKET: a period of generally pessimistic attitudes and declining market prices. (Compare: Bull market) BELOW THE MARKET: a price below the current market price for a particular security. BID AND ASKED OR BID AND OFFER: the price at which an owner offers to sell (asked or offer) and the price at which a prospective buyer offers to buy (bid). It is often referred to as a quotation or a quote. The difference between the two is called the spread. BOND: an interest-bearing security issued by a corporation, government, governmental agency or other body, which can be executed through a bank or trust company. A bond is a 17 CITY OF LODI INVESTMENT POLICY form of debt with an interest rate, maturity, and face value, and is usually secured by specific assets. Most bonds have a maturity of greater than one year, and generally pay interest semiannually. BOND ANTICIPATION NOTE (BAN): short-term notes sold by states and municipalities to obtain interim financing for projects which will eventually be financed by the sale of bonds. BOND DISCOUNT: the difference between a bond's face value and a selling price, when the selling price is lower than the face value. BOND RATING the classification of a bond's investment quality. (See: Rating). BOND RESOLUTION: a legal order or contract by a governmental unit to authorize a bond issue. A bond resolution carefully details the rights of the bondholders and the obligation of the issuer. BOOK VALUE: the amount at which a security is carried on the books of the holder or issuer. The book value is often the cost, plus or minus amortization, and may differ significantly from the market value. BROKER: a middleman who brings buyers and sellers together and handles their orders, generally charging a commission for this service. In contrast to a principal or a dealer, the broker does not own or take a position in securities. BULL MARKET: a period of generally optimistic attitudes and increasing market prices. (Compare: Bear Market). BUYERS MARKET: a market where supply is greater than demand, giving buyers an advantage in purchase price and terms. CALL: an option to buy a specific asset at a certain price within a particular period. CALLABLE: a feature which states a bond or preferred stock may be redeemed by the issuer prior to maturity under terms designated prior to issuance. CALL DATE: the date on which a bond may be redeemed before maturity at the option of the issuer. CALLED BONDS: bonds redeemed before maturity. CALL PREMIUM: the excess paid for a bond or security over its face value. CALL PRICE: the price paid for a security when it is called. The call price is equal to the face value of the security, plus the call premium. 10 CITY OF LODI INVESTMENT POLICY CALL PROVISION: the call provision describes the details by which a bond may be redeemed by the issuer, in whole or in part, prior to maturity. A Security with such a provision will usually have a higher interest rate than comparable, but noncallable securities. CAPITAL GAIN OR LOSS: the amount that is made or lost, depending upon the difference between the sale price and the purchase price of any capital asset or security. CAPITAL MARKET: the market in which buyers and sellers, including institutions, banks, governments, corporations and individuals, trade debt and equity securities. CASH SALE: a transaction calling for the delivery and payment of the securities on the same day that the transaction takes place. CERTIFICATE OF DEPOSIT (CD): debt instrument issued by a bank that usually pays interest. Institutional CD's are issued in denominations of $100,000 or more. Maturities range from a few weeks to several years. Competitive forces in the marketplace set interest rates. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS): deposits made with a "selected" depository institution, in accordance with California Government Code Section 53601.8, that uses a private entity to assist in the placement of certificates of deposit. Such deposits shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. The selected depository institution shall serve as custodian for each certificate of deposit that is issued with placement service for the City of Lodi's account. COLLATERAL: securities or other property, which a borrower pledges for the repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COLLATERAL NOTE: a promissory note, which specifically mentions the collateral, pledged by the borrower for the repayment of an obligation. COMMERCIAL PAPER: short-term obligations with maturities ranging from 2 to 270 days issued by banks, corporations, and other borrowers to investors with temporarily idle cash. Such instruments are unsecured and usually discounted, although some are interest-bearing. COMMISSION: the brokers or agent's fee for purchasing or selling securities for a client. COUPON: the annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. COVENANT: a pledge in the bond resolution or indenture of the issuing government to perform in a way that may benefit the bondholders, or to refrain from doing something that might be disadvantageous to them. 19 CITY OF LODI INVESTMENT POLICY COVER: the spread between the winning bid (or offer) and the next highest bid (or the next lowest offer). It is useful as a basis for evaluation of the bids. COVERAGE RATIO: the ratio of income available to pay a specific obligation versus the total amount obligated. This is a measure of financial stability. CREDIT ANALYSIS: a critical review and appraisal of the economic and financial condition of a government agency or corporation. The credit analysis evaluates the issuing entity's ability to meet its debt obligations, and the suitability of such obligations for underwriting or investment. CURRENT MATURITY: amount of time left to the maturity of an obligation. DEBENTURE: a bond secured by the general credit of the issuer rather than being backed by a specific lien on property as in mortgage bonds. DEBT COVERAGE: this term is normally used in connection with revenue and corporate bonds. It indicates the margin of safety for payment of debt, reflecting the number of times by which earnings for a certain period of time exceed debt payable during the same period. DEBT LIMIT (OR CEILING): the maximum amount of debt that can legally be acquired under the debt -incurring power of a state or municipality. DEBT SERVICE: interest and principal obligation on an outstanding debt. This is usually for a one-year period. DEFAULT: failure to pay principal or interest promptly when due. DELIVERY VERSUS PAYMENT: securities industry procedure, common with institutional accounts, whereby delivery of securities sold is made to the buying customer's bank in exchange for payment, usually in the form of cash. (Institutions are required by law to require "assets of equal value" in exchange for delivery.) Also called Cash on Delivery. DERIVATIVE: contracts written between a City and a counter party such as a bank, insurance company or brokerage firms. Their value is derived from the value of some underlying assets such as Treasury Bonds or a market index such as LIBOR. Derivatives are used to create financial instruments to meet special market needs. Two contrasting reasons for the use of derivatives are: 1) to limit risk or transfer it to those willing to bear it; and, 2) to speculate about future interest rates and leverage in hope of increasing returns. DISCOUNT: the difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after a sale also is considered to be at a discount. 20 CITY OF LODI INVESTMENT POLICY DIVERSIFICATION: dividing investment funds among a variety of securities offering independent returns. DUE DILIGENCE: exercising of due professional care in the performance of duties. FACE VALUE: the principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity. FANNIE MAE: trade name for the Federal National Mortgage Association. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): federal agency established in 1933 that guarantees (within limits) funds on deposit in member banks and performs other functions such as making loans to or buying assets from members banks to facilitate mergers or prevent failures. FEDERAL FUNDS RATE: the rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. FEDERAL HOME LOAN BANKS (FHLB): government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (FOMC): consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: the central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. 21 CITY OF LODI INVESTMENT POLICY FIDUCIARY: an individual or group, such as a bank or trust company, which acts for the benefit of another party or to which certain property is given to hold in trust, according the trust agreement. FISCAL YEAR: an accounting or tax period comprising any twelve-month period. The City's fiscal year starts July 1. FREDDIE MAC: trade name for the Federal Home Loan Mortgage Corporation. FULL FAITH AND CREDIT: the unconditional guarantee of the United States government backing a debt for repayment. GENERAL OBLIGATION BONDS (GO's): bonds secured by the pledge of the municipal issuer's full faith and credit, usually including unlimited taxing power. GINNIE MAE: trade name for the Government National Mortgage Association. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FmHA mortgages. The term "pass-through" is often used to describe Ginnie Maes. HOLDER: the person or entity which is in possession of a negotiable instrument. INDEBTEDNESS: the obligation assumed by a borrower, guarantor, endorser, etc. to repay funds which have been or will be paid out on the borrower's behalf. INDENTURE: a written agreement used in connection with a security issue. The document sets the maturity date, interest rate, security and other terms for both the issue holder, issuer and, when appropriate, the trustee. INTEREST RATE: the interest payable each year on borrowed funds expressed as a percentage of the principal. INVESTMENT: use of capital to create more money, either through income-producing vehicles or through more risk -oriented ventures designed to result in capital gains. INVESTMENT PORTFOLIO: a collection of securities held by a bank, individual, institution, or government agency for investment purposes. IRREVOCABLE LETTER OF CREDIT: instrument or document issued by a bank guaranteeing the payment of a customer's drafts up to a stated amount for a specified period. It substitutes the bank's credit for the buyer's and eliminates the seller's risk. This 22 CITY OF LODI INVESTMENT POLICY arrangement cannot be changed or terminated by the one who created it without the agreement of the beneficiary. ISSUE PRICE: the price at which a new issue of securities is put on the market. ISSUER: any corporation or governmental unit, which borrows money through the sale of securities. JOINT AND SEVERAL OBLIGATION: a guarantee to the holder in which the liability for a bond or note issue may be enforced against all parties jointly or any one of them individually so that one, several or all may be held responsible for its payment. LAIF: trade name for California State Local Agency Investment Fund. LEGAL INVESTMENT: a list of securities in which certain institutions and fiduciaries may invest as determined by regulatory agencies. LEGAL OPINION: an opinion concerning the legality of a bond issue, usually written by a recognized law firm specializing in the approval of public borrowings. LIQUIDITY: a liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. MARKETABILITY: the measure of ease with which a security can be sold in the secondary market. MARKET ORDER: an order to buy or sell securities at the prevailing bid or ask price on the market. MARKET VALUE: the price at which a security is trading and could presumably be purchased or sold. MARKET VS. QUOTE: quote designates the current bid and ask on a security, as opposed to the price at which the last security order was sold. MASTER REPURCHASE AGREEMENT: a written contract covering all future transactions between the parties to repurchase—reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller -borrower. MATURITY: the date that the principal or stated value of debt instrument becomes due and payable. It is also used as the length of time between the issue date and the due date. 23 CITY OF LODI INVESTMENT POLICY MONEY MARKET: the market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. MORTGAGE BOND: a bond secured by a mortgage on property. The value of the property used as collateral usually exceeds that of the mortgage bond issued against it. NEGOTIABLE: a term used to designate a security, the title to which is transferable by delivery. Also used to refer to the ability to exchange securities for cash or near -cash instruments. NO PAR VALUE: a security issued with no face or par value. NON-NEGOTIABLE: a security whose title or ownership is not transferable through a simple delivery or endorsement. (See: Negotiable.) OBLIGATION: a responsibility for paying back a debt. OFFER: the price of a security at which a person is willing to sell. OFFERING: placing securities for sale to buyers. The offering usually states the price and terms. OPEN MARKET OPERATIONS: purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PAR VALUE: the stated or face value of a security expressed as a specific dollar amount marked on the face of the security; the amount of money due at maturity. Par value should not be confused with market value. PAYING AGENT: the agency, usually a commercial bank, which dispenses the principal and interest payable on a maturing issue. PORTFOLIO: the collection of securities held by an individual or institution. PREMIUM: the amount by which the price paid for a security exceeds the par value. Also, the amount that must be paid over the par value to call an issue before maturity. PRIMARY DEALER: a group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and 24 CITY OF LODI INVESTMENT POLICY Exchange Commission (SEC) -registered securities broker-dealers, banks, and a few unregulated firms. PRINCIPAL: the face or par value of an instrument. It does not include accrued interest. PRUDENT INVESTOR RULE: an investment standard adopted by the State of California in 1995. It states that a trustee shall consider the entire investment portfolio when determining the prudence of an individual investment; diversification is explicitly required within a portfolio; suitability of an investment is a primary determinant; and delegation of investment management is acceptable. PRUDENT MAN RULE: an investment standard established in 1630. It states that a trustee who is investing for another should behave in the same way as a prudent individual of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUOTATION (QUOTE): the highest bid to buy or the lowest offer to sell a security in any market at a particular time. RATE OF RETURN: 1) the yield which attainable on a security based on its purchase price or its current market price. 2) This may be the amortized yield to maturity on a bond the current income returns. RATING: the designation used by investors' services to rate the quality of a security's creditworthiness. Moody's ratings range from the highest Aaa, down through Aa, A, Baa, Ba, B, etc., while Standard and Poor's ratings range from the highest AAA, down through AA, A, BBB, BB, B, etc. REFINANCING: rolling over the principal on securities that have reached maturity or replacing them with the sale of new issues. The object may be to save interest costs or to extend the maturity of the loan. REGISTERED BOND: a bond whose principal and/or interest is payable only to that person or organization which is registered with the issuer. This form is not negotiable and it can be transferred only when endorsed by the registered owner. REPURCHASE AGREEMENT (REPO): agreement between a seller and a buyer, usually of U.S. Government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. The attraction of repos is the flexibility of maturities that makes them an ideal place to "park" funds on a very temporary basis. Dealers also arrange reverse repurchase agreements, whereby they agree to buy the securities and the investor agrees to repurchase them at a later date. REVENUE ANTICIPATION NOTES (RAN): short-term notes sold in anticipation of receiving future revenues. The notes are to be paid from the proceeds of those revenues. 25 CITY OF LODI INVESTMENT POLICY REVENUE BOND: a state or local bond secured by revenues derived from the operations of specific public enterprises, such as utilities. Such bonds are not generally backed by the taxation power of the issuer unless otherwise specified in the bond indenture. SAFEKEEPING: a service banks offer to customers for a fee, where securities are held in the bank's vaults for protection. SECURED DEPOSIT: bank deposits of state or local government funds which, under the laws of certain jurisdictions, must be secured by the pledge of acceptable securities. SECONDARY MARKET: a market made for the purchase and sale of outstanding issues following the initial distribution. SECURED DEPOSIT: bank deposits of state or local government funds which, under the laws of certain jurisdictions, must be secured by the pledge of acceptable securities. SECURITIES: investment instruments such as bonds, stocks and other instruments of indebtedness or equity. SECURITIES & EXCHANGE COMMISSION: agency created by Congress to protect investors in securities transactions by administering securities legislation. SERIAL BOND: bonds of the same issue, which have different maturities, coming due over a number of years rather than all at once. This allows the issuer to retire the issue in small amounts over a long period of time. SETTLEMENT DATE: date by which an executed order must be settled, either by buyer paying for the securities with cash or by a seller delivering the securities and receiving the proceeds of the sale for them. SINKING FUND: a reserve fund set aside over a period of time for the purpose of liquidating or retiring an obligation, such as a bond issue, at maturity. SPECIAL ASSESSMENT BONDS: bonds that are paid back from taxes on the property that is benefiting from the improvement being financed. The issuing governmental entity agrees to make the assessments and earmark the tax proceeds to repay the debt on these bonds. SPREAD: the difference between two figures or percentages. For example, it may be the difference between the bid and asked prices of a quote, or between the amount paid when bought and the amount received when sold. SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development; International Finance Corporation, or Inter -American Development Bank. 26 CITY OF LODI INVESTMENT POLICY TAX ANTICIPATION NOTES (TAN): short-term notes issued by states or municipalities to finance current operations in anticipation of future tax collections which would be used to repay the debt. TAX-EXEMPT BONDS: interest paid on municipal bonds issued by state and local governments or agencies is usually exempt from federal taxes, and in some cases, the state and/or local taxes. The interest rate paid on these bonds is generally lower than rates on non-exempt securities. TERMS: the conditions of the sale or purchase of a security. TREASURY BILL (T -BILL): a non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS AND NOTES: obligations of the U. S. government which bear interest. Notes have maturities of one to seven years, while bonds have longer maturities. TREASURY BONDS: long-term coupon bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: medium-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. TRUSTEE: a bank designated as the custodian of funds and the official representative for bondholders. UNDERWRITER: a dealer bank or other financial institution, which arranges for the sale and distribution of a large batch of securities and assumes the responsibility for paying the net purchase price. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one -reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: the annual rate of return on an investment, expressed as a percentage of the investment. YIELD CURVE: graph showing the term structure of interest rates by plotting the yields of all bonds of the same quality with maturities ranging from the shortest to the longest available. The resulting curve shows if short-term interest rates are higher or lower than long-term 27 CITY OF LODI INVESTMENT POLICY rates. For the most part, the yield curve is positive (short-term rates are lower), since investors who are willing to tie up their money for a longer period of time usually are compensated for the extra risk they are taking by receiving a higher yield. W ATTACHMENT F City of Lodi Budget and Fiscal Policies CITY OF CALIFORNIA Adopted by the Lodi City Council June 2, 2021 Resolution 2021- City of Lodi Budget and Fiscal Polices Table of Contents 1. Purpose ................................................... 2. Budget Development ............................... 3. Budget Administration and Adjustment 4. Appropriation Limit ............................... 5. Components of Fund Balance ................ 6. Fund Balance Policies ............................. 7. General Fund Reserves ........................... 8. Measure L Fund Reserves ...................... 9. Special Revenue Fund Reserves ............. 10. Enterprise Fund Reserves ...................... 11. Internal Service Fund Reserves ............. 12. Capital Improvement Plan ..................... 13. Encumbrance Accounting ...................... 14. Pension Stabilization Policy .................... 15. Review and Update ................................. 2 .3 .3 .5 .7 .7 .8 .8 10 10 13 13 14 16 16 18 1. Purpose The City's primary financial objective is to maintain the fiscal stability of the organization. The purpose of this policy is to establish guidelines for budget development, administration, and management as well as outline the City's fiscal policies in regard to cost recovery of various programs, target reserve levels in all funds and funding mechanisms for various programs. 2. Budget Development The budget will reflect the goals and priorities of the Council each year and make the best use of available funding within those goals and priorities. While goals and priorities may change from year to year, some basic tenets will apply to all budgets. Those tenets are reflected below. A. The General Fund budget will be balanced each year, without the use of reserves. Current year revenues will support current year expenditures. B. One-time revenue will be used to fund one-time expenditures or be placed in reserves. One-time revenue will not be used to fund on-going operations. C. Annual budgetary savings will be used to fund one-time expenditures or be placed in reserves. D. Funding for the Vehicle Replacement Fund shall be based upon annual depreciation schedules for vehicles and amounts will be reflected in departmental budgets. E. Funding for the Other Post -Employment Benefits (OPEB) Fund shall be no less than the Actuarial Required Contribution shown in the actuarial report and charged to each fund based upon ratio of current full time positions. All reserves in the Benefits Fund category in excess of 25% of estimated annual costs for benefits in this fund shall be budgeted for investment in the City's OPEB trust fund. F. Funding for CAPERS pension costs are as follows. Current year Normal Cost will be budgeted in each fund based on the estimated cost for employees in that fund. Current year Unfunded Accrued Liability (UAL) payments will be budgeted within each fund based on each fund's share of employee's within each class (Safety or Miscellaneous). For purposes of allocating UAL, employees funded by Measure L will be allocated to the General Fund. The City will budget for the monthly payment of the UAL but will make the annual UAL payment to recognize the approximately 3.6% savings offered by Ca1PERS on this option. The Deputy City Manager will then use the UAL savings to make Additional Discretionary Payments (ADP) to CAPERS to further reduce the City's UAL. G. Funding for the Information Technology (IT) Replacement Fund shall be based upon the replacement cycle for equipment contained in the fund. H. Budgetary allotments for OPEB, Pension Stabilization and IT Replacement shall be reflected in the Non -Departmental Organization Unit for all General Fund units. a. Special Revenue, Enterprise and Internal Service funds will reflect budgetary allotments for these items within their respective funds. I. Fixed Assets a. Capital purchases of $10,000 or more, with a three year useful life, will be capitalized. b. Infrastructure additions or new construction of $10,000 or more will be capitalized. c. Vehicle purchases of any amount will be capitalized and useful lives will be determined based upon the Government Finance Officers Association Best Practices guidelines. d. Straight-line depreciation will be used for all depreciable assets. J. Library a. The Library is primarily funded through a transfer from the General Fund. Council will set the level of funding each year based upon available General Fund revenue. K. Parks, Recreation and Cultural Services (PRCS) a. Recreation and Community Center Programs i. The goal is to recover, on average, 40% of program costs from participants. Individual programs may be fully self-supporting while other programs may have a nominal cost recovery ratio. b. General Fund Transfer 4 i. The General Fund Transfer shall be determined by Council each year. The intent of the General Fund Transfer is to cover the costs associated with Parks Maintenance, PRCS administration, Debt Service and Hutchins Street Square Maintenance. L. Community Development a. The Community Development Department should primarily be self- supporting through fee revenue. b. A General Fund Transfer, determined by Council each year, will be designed to support the value of the general information function that the department provides and support at least one-half of the costs associated with a Youth Outreach function designed to divert youth involvement in gang activities. M. Enterprise Funds a. Enterprise funds will set fees and rates at levels that meet operating, debt service, capital and reserve needs. N. Internal Service Funds a. Internal Service funds will set rates and charges at levels that will ensure full recovery of costs each year. 3. Budget Administration and Adjustment 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 Council. The legal level of budgetary control is at the fund level. A. City Manager The City Manager, as the chief administrative officer, provides staff with general direction in the development and formulation of the City Manager's budget recommendations to Council. This includes: evaluating and assessing current and anticipated issues facing the City; determining the demand for services and facilities; identifying the concerns of the citizenry; assessing the current and projected financial condition of the City; and determining the final staffing recommendations. B. Deputy City Manager/Internal Services Director The Deputy City Manager/Internal Services Director, as the chief financial officer, is responsible for budget development and day-to-day administration of adopted budgets. This includes: developing and issuing the budget instructions and calendar; advising the City Manager on budget policies and issues, including the recommended level of funding for each department within the General Fund; reviewing budget requests to ensure they are complete and accurate; preparing the preliminary budget recommendations for review by the City Manager; and publishing the approved budget, Capital Improvement Plan, and Budget in Brief documents. C. Department Directors Department directors are responsible for preparing their operating and capital budget requests in accordance with the City's budget instructions and managing their respective departments within their approved budget allotments. D. Failure to Adopt a Budget If the City 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 appropriation of funds: (1) Provide the City Manager with Continuing Resolution Authority to allow continued services at expenditure levels not greater than those in the prior year budget; or (2) Require staff to obtain prior approval for any expenditure (payment) of City funds. E. Public Record The budget document will be available on-line at the City's website (www.lodi.gov). Hard copies will be available for public review at the Lodi Public Library, City Hall and the Carnegie Forum. F. Budget Adjustments a. City Council approval is required for any increase in total appropriations within any individual fund. All budget adjustments that increase one fund's total appropriations, including net zero budget adjustments, must have City Council approval. b. The City Manager and Deputy City Manager have the authority to adjust appropriations within a fund, so long as total appropriations within the fund do not increase. This includes adjustments between departments within a fund. 0 c. Department directors have the authority to adjust appropriations within their department, so long as total appropriations within the department within the fund do not increase. 4. Appropriation Limit 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. 5. Components of Fund Balance A. Governmental Accounting Standards Board Statement Number 54 — Fund Balance Reporting and Governmental Fund Type Definitions outlines the requirements to report fund balance for governmental funds in specific classifications which create a hierarchy primarily based upon the extent to which a City is bound to constraints on the specific purposes for which the funds can be spent. Fund Balance consists of the following five categories: i. Non -spendable fund balance: amounts that cannot be spent because they are either (a) not in a spendable form (e.g., inventories or pre-paids) or (b) legally or contractually required to be maintained intact (e.g., endowment). ii. Restricted fund balance: amounts that can only be spent for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation (e.g., grants, gas tax, impact fees). iii. Committed fund balance: amounts that can be used for the specific purposes determined by formal action of the government's highest level of decision making authority. Committed fund balance can be changed only by the government taking the same formal action that initially created the commitment. (e.g., Council approved catastrophic or economic reserves). iv. Assigned fund balance: amounts that are intended to be used by the government for specific purposes. Intent can be established by either the governing body or delegated to a City official. v. Unassigned fund balance: the remaining amount of fund balance after all other fund balance classifications are accounted for and can be either positive or negative. Positive unassigned fund balance is available for any purpose. 7 6. Fund Balance Policies A. Committing Fund Balance i. The City Council is the City's highest level of decision making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution or ordinance approved by the City Council at a City Council meeting. For reporting purposes, the resolution or ordinance approving, modifying or rescinding a fund balance commitment must be approved prior to the last day of the fiscal year for which the commitment is to be reported. The amount of the commitment may be determined in a subsequent period. B. Assigning Fund Balance i. The City Council retains the authority to assign fund balance. C. Hierarchy of Fund Balance Use i. When multiple categories of fund balance are available for expenditure, the City will spend the most restrictive funds first before moving down to the next category with available funds in the following order: 1. Restricted 2. Committed 3. Assigned 4. Unassigned. 7. General Fund Reserves Maintaining reserves in the General Fund is critical to the successful and stable short- and long-term operations of the City. Adequate reserves in the General Fund ensure that the City is able to respond to emergencies and continue providing services to the citizens of Lodi. Adequate reserves also ensure that the City will have sufficient funds available to meet its operating, capital and debt service obligations. A. Catastrophic Reserve i. A Catastrophic Reserve is established within the General Fund. This reserve is established to maintain the ability of the City to meet operational expenses during times of declared emergency or major catastrophe. 8 1. It is recognized that during a time of emergency, the City will need to expend more resources than normal operations dictate to meet the community's need. In addition to an increased level of expenditure, the tax base of the City may be impaired after a major catastrophic event. ii. The amount of the Catastrophic Reserve shall be a minimum of 8% of annual General Fund revenues, including Operating Transfers. iii. The Catastrophic Reserve shall be exclusive of all other reserve amounts. iv. Council may draw on the Catastrophic Reserve only upon declaration of an emergency pursuant to the Lodi Municipal Code. v. If the Catastrophic Reserve falls below 8% of annual General Fund revenue, including Operating Transfers, the City Manager shall prepare a plan within three months of Council approval of the Comprehensive Annual Financial Report (CAFR) to restore the reserve balance to the 8% level within 12 months. vi. The Catastrophic Reserve is not intended for normal unanticipated expenditures and shall be funded before all other committed General Fund reserves. B. Economic Reserve i. An Economic Reserve is established within the General Fund. This reserve is established to maintain the City's economic viability and to meet seasonal cash flow needs. 1. It is recognized that economic cycles can cause significant fluctuations in the revenue streams of the City and the recovery from down cycles can be prolonged and affect service levels to the community dramatically. The Economic Reserve is intended to assist the City in maintaining service levels while revenues recover from a down economic cycle. ii. The amount of the Economic Reserve shall be a minimum of 8% of annual General Fund revenues, including Operating Transfers. iii. The Economic Reserve shall be exclusive of all other reserve amounts. iv. Council may draw on the Economic Reserve only upon adoption of a resolution of the City Council. 9 v. If the Economic Reserve falls below 8% of annual General Fund revenue, including Operating Transfers, the City Manager shall prepare a plan within three months of Council approval of the Comprehensive Annual Financial Report (CAFR) to restore the reserve balance to the 8% level within 12 months. vi. The Economic Reserve is not intended to be used to encourage development through the expansion of infrastructure to undeveloped areas of the City and shall be funded once the General Fund Catastrophic Reserve is fully funded. C. Should there be a lower fund balance presented in the proposed Budget, the City Manager shall first recommend use of Pension Stabilization Funds to offset Unfunded Accrued Liability (UAL) costs in the Fiscal year. The Deputy City Manager shall first pay all UAL costs with current year resources and shall only draw on the PSF in the final month of the Fiscal Year if in his/her opinion it is still estimated a draw is needed to meet the 16% total fund balance requirement. 8. Measure L Fund Reserves As a general purpose revenue, maintaining healthy reserves in the Measure L fund is critical for the same reasons as in the General Fund. Adequate reserves ensure that the City will continue to be able to provide Lodi citizens the services funded by Measure L in the long term. The Measure L Fund shall maintain the same 8% Catastrophic and 8 % Economic Reserves as outlined under Section 7 A. and Section 7 B. above. Measure L Funds shall not be subject to the City's Pension Stabilization Policy. By allocating UAL in the method described in Section 1 F. above, the General Fund will cover any UAL costs attributable to the employees funded by Measure L. As a new revenue stream beginning April 1, 2019, Measure L will take time to build up a reserve to comply with this policy. Initially, the fund balance will be built to the full 16% combined fund balance over a three year timeframe beginning with the FY 2019/20 budget and ending with FY 2021/22. Budgets from FY 2019/20 through FY 2021/22 shall include approximately 5.33% of revenue as a deliberate set aside to fund these reserve categories. 9. Special Revenue Fund Reserves Maintaining reserves in the City's Special Revenue Funds is also critical to the successful and stable short- and long-term operations of the City. Adequate reserves in the Special Revenue Funds, where appropriate, ensure that the City is able to carry out the purpose of the special revenue fund and ensure compliance with underlying laws and contractual 10 provisions associated with the funds. Additionally, bond rating agencies often evaluate a City's General Fund financial resilience by looking at reserves that may be drawn from Special Revenue funds to help support General Fund activities. A. Library i. Since the Library is primarily funded by a General Fund transfer, there is no need to duplicate reserves associated with the transfer amount within the Library Fund. U. Reserves within the Library Fund should be maintained at a minimum level of 16% of annual Non -General Fund Transfer revenue. B. Parks, Recreation and Cultural Services (PRCS) i. Since a significant portion of PRCS revenue comes from a General Fund transfer, there is no need to duplicate reserves associated with the transfer amount within the PRCS fund. ii. Reserves within the PRCS Fund should be maintained at a minimum level of 16% of annual Non -General Fund Transfer revenue. C. Community Development i. The Community Development Fund is primarily self-supporting from fee revenue associated with development activities. The activities and financing of this fund are subject to wide fluctuations based upon the state of the development economy. Many of the fees assessed are collected ahead of services being provided. In the event of an economic downturn, the fund will have collected fees for services that have not yet been provided. As such, it is prudent to carry a large reserve to recognize that the reserve represents services that have not yet been provided. ii. Reserves within the Community Development Fund should be maintained at a minimum level of 50% of annual operating expenses, including transfers. D. Vehicle Replacement i. It is the City Council's goal to maintain reserves in the Vehicle Replacement equal to the accumulated depreciation of the vehicles in the fund. 11 1. The City Manager's proposed budget will recommend fully funding vehicle replacement funds equal to the annual straight-line depreciation of all vehicles in the fund. 2. Should Council elect not to fund the straight-line annual depreciation in the budget, the Deputy City Manager will report on the short fall in the fund within the budget document. 3. It is recognized that a shortfall currently exists and fully funding only one year of straight-line depreciation will result in a continued under -funding of vehicle replacements until the current vehicle stock is replaced. E. Information Technology Replacement i. It is the City Council's goal to maintain reserves in the Information Technology Replacement fund equal to the accumulated depreciation of the equipment in the fund. 1. The City Manager's proposed budget will recommend fully funding the Information Technology Replacement fund equal to the annual straight-line depreciation of all equipment in the fund. 2. Should Council elect not to fund the straight-line annual depreciation in the budget, the Deputy City Manager will report on the shortfall in the fund within the budget document. 3. It is recognized that a shortfall currently exists and fully funding only one year of straight-line depreciation will result in a continued under funding of Information Technology Equipment replacements until the current equipment stock is replaced. F. Other Special Revenue Funds i. All reserve balances in the following fund categories are restricted by the terms of the individual funds within the fund category: 1. Streets 2. Transportation Development Act 3. Community Development Block Grant 4. Debt Service 12 5. Public Safety Special Revenue 6. General Fund Capital Outlay 7. Parks Capital Outlay 8. Vehicle and Equipment Replacement 10. Enterprise Fund Reserves Maintaining reserves in the City's Enterprise Funds is also critical to the successful and stable short- and long-term operations of the City. Adequate reserves in the Enterprise Funds ensures that the City is able to carry out the purpose of the fund and ensures compliance with underlying laws and contractual provisions associated with the funds. Among other metrics, bond rating agencies review compliance with reserve policies in determining credit ratings. A. Electric Utility i. The City Council separately adopts a reserve policy for the Electric Utility and reviews the components of the policy every three years. As part of the annual budget process, Council is apprised of the level of reserves desired under that policy. B. Water Utility i. The City Council has adopted a financial model for the Water Enterprise that incorporates a reserve target of 25% of Operating Expenses. ii. Additionally, all funds collected in relation to PCE/TCE rates or settlements are restricted to use solely for the mitigation and remediation of those pollutants. C. Wastewater Utility i. The City Council has adopted a financial model for the Wastewater Enterprise that incorporates a reserve target of 25% of Operating Expenses. D. Transit i. All reserve funds in the Transit Enterprise are restricted as to use solely for transit purposes. 11. Internal Service Fund Reserves 13 Maintaining reserves in the City's Internal Service Funds demonstrates fiscal accountability and financial prudence. Adequate reserves in the Internal Service Funds ensure that the City has set aside sufficient funds to meet the future obligations it has committed to provide to its employees. Additionally, bond rating agencies review these funds and look favorably upon entities that are funding the long-term liabilities represented in the City's Internal Service Funds. A. Benefits Fund i. Reserves equal to 25% of the estimated annual cost of all benefits paid for by this fund. ii. The Deputy City Manager/Treasurer will invest all reserves in the fund, as reported in the prior fiscal year's CAFR, in excess of 25% of the estimated annual cost of all benefits paid in a current fiscal year upon completion of the prior fiscal year's CAFR. B. General Liability Insurance and Worker's Compensation Funds i. Reserves, at a minimum, equal to the 90% confidence level shown in the annual actuarial report, should be held locally and invested along with the City's pooled cash portfolio. ii. Funding at the 90% confidence level will be recommended in each annual budget. iii. The Deputy City Manager will review the status of the funds as of December 31 each year. If it is estimated that the full budget transfer is not needed to maintain the 90% confidence level in that year, he/she may reduce the budgeted transfer for that Fiscal Year for each fund prorated to each fund's budgeted contribution. C. Fleet Maintenance Fund i. Reserves equal to a minimum of 16% of Operating Expenses shall be held in the Fleet Maintenance Fund. 12. Capital Improvement Plan The City is committed to ensuring that all of its assets are operated, maintained and replaced in a manner that is the most prudent method of maintaining the public stewardship of those assets. To that end, the City will prepare and update annually a 14 Capital Improvement Plan (CIP) that encompasses those assets and looks out over a five- year lifespan. The first year of the five-year plan will be the current budget year. The Internal Services Department will be responsible for gathering the data for inclusion in the plan. A. CIP Projects i. Construction projects that are expected to cost $25,000 or more should be included in the CIP. Projects will be a combination of projects that repair, replace or enhance existing facilities and infrastructure and projects that expand or add to the City's existing fixed assets. Vehicles and equipment (rolling stock) are not to be included in the CIP. B. CIP Appropriations i. Approval of the CIP estimates beyond the current year budget do not constitute appropriation of the funds necessary or designation of the funds necessary to complete the project. Unspent current year budget allocations will automatically carryforward until project completion with the exception of unencumbered budgets in annual maintenance programs within the CIP. Upon completion of a project, unspent budget is returned to the fund until appropriated by future City Council action. Employee labor costs do not carry forward. C. Level of Budget Control i. Budget control for CIP projects will be at both the general ledger account level and the CIP project level. Budget allocated to one CIP project cannot be moved to another project within the CIP or to a non-CIP use without Council approval. Department Directors may transfer budget between line items within a project and fund as long as the total expenditure for the project or for the amount of the funding source specific to that project does not increase. D. Elements of the CIP i. Each project listed in the CIP will address the following items: • project description • project timeline • anticipated funding sources • estimated expenditures 15 • revenues and expenditures will be reflected by fiscal year over the five-year timespan of the CIP • estimated annual ongoing operating and maintenance costs 13. Encumbrance Accounting Encumbrances represent commitments to contracts not yet performed and orders not yet filled. They are used to control expenditure commitments for the year and to enhance cash management. Encumbrances do not represent expenditures for a period, only a commitment to expend resources. As a contract is completed, the budgetary encumbrance control accounts are liquidated or reduced and the actual expenditure is recorded. A. Lapsing Appropriations i. All unencumbered funds lapse at the end of the Fiscal Year with the exception of Capital Projects funds. Funds encumbered on contracts will roll into the next year. The Deputy City Manager shall review all contracts to determine what encumbered funds shall lapse due to contract completion. ii. Capital Projects — appropriated funds in the current fiscal year do not lapse until project completion or abandonment, whether encumbered or unencumbered. 14. Pension Stabilization Policy This section replaces the policy adopted by Resolution 2017-219 and amends language and form for consistency with this policy. The policy is also updated and amended to factor in UAL funding for UAL costs attributable to positions funded by Measure L. A. Pension Stabilization Funding i. The Treasurer is authorized to invest all fund balance in excess of 16% in the General Fund (Pension Stabilization Resources, or PSR), based on the City's Comprehensive Annual Financial Report (CAFR) from the previous year in the City's Internal Revenue Code Section 115 Trust account with Public Agency Retirement Solutions (PARS); and with Council consent use PARS trust funds to make: a. ADP to the Safety Plan of the City of Lodi held by Ca1PERS; or b. ADP to the Miscellaneous Plan of the City of Lodi held by Ca1PERS; 16 until such time that the combined Market Value of Assets at the two Ca1PERS Plans plus the Market Value of Assets in the PARS fund exceed 80% of the combined "Entry Age Normal Accrued Liability" for both Safety and Miscellaneous or its most proximate equivalent as calculated by Ca1PERS in the annual Actuarial Reports. B. Allocation of Pension Stabilization Reserve Funding i. PSR investments made under this policy shall be accounted for by source fund and be made from all source funds in equal proportions to the actual allocation of Ca1PERS combined normal cost plus UAL cost within the Fiscal Year of the most recently approved CAFR. 1. The Measure L Fund shall not contribute to the Pension Stabilization Fund. ii. The base fund for determining the amount of proportional PSR for other funds shall be the City's General Fund (Fund 100). 1. If PSR for a particular fund is not adequate to cover the proportional requirement for that fund, the Treasurer shall prepare a report and recommendations to City Council to seek direction on PSR for that Fiscal Year. iii. Nothing in this policy shall allow the Treasurer to make PSR investments of any fund to have a projected year end fund balance below thresholds established in Section 7, 8, 9, 10, or 11 of this policy. 1. If proportional PSR investments would cause the projected year end fund balance of any fund to fall below thresholds established in the Fiscal Policies, the Treasurer shall prepare a report and recommendations to City Council within the scope of this policy. C. Budget Adjustments i. The City Manager is authorized to make any necessary budget adjustments to execute this policy in each Fiscal Year based on the calculated PSR. D. Pension Stabilization Reporting i. The Treasurer shall prepare and present the funded statuses of the City's combined pension plans in the Annual Budget and the Mid -Year Budget report. 17 15. Review and Update These policies will be in place for the 2021/22 and 2022/23 fiscal years beginning with the FY 2021/22 budget. These policies will be reviewed and updated every two years in odd numbered years in conjunction with the approval of the annual budget. The next review cycle will be in conjunction with the FY 2022/24 budget. 18 Fiscal Year 2021/22 Budget Adoption Presented by Andrew Keys, Deputy City Manager *Changes from Draft Document • Position Requests • Capital Improvement Project Program *All Fund Expenditures • Recommended Action • Questions • Prior Shirtsleeve Information The FY 2021/22 draft document was published May 141h. The below changes are included in the budget adoption and will be updated in the final version. Page -# Department Change; * Add $200,000 in revenue to General Fund Capital 43100000.57702 to recognize a General Fund donation from the Lodi Police Foundation fortheir support of renovations to the Annex 255 Capital Gun Range Project 4216 General Fund Add $1,347,444 in expenses to General Fund Capital 43199000.77020 forthe following 257 Capital ---------------------------------- projects: ------------------------------------------------------------------------- • $200,000 increase to Church Street Parking Lot, project #136 • $120,000 increase to Fire Station 93 Generator, project #140 • $50,000 increase for Animal Shelter Roof, project #207 • $300,000 increase for New Animal Shelter, project #208 • $5,000 increase for Carnegie Forum Water Heater, project #211 • $10,00D increase for Facilities Office Remodel, project #212 • $337,440 increase for Police Department Training Facility, project #212 • $25,000 increase for Miscellaneous Cl P Projects, project #215 • $300,000 increase for Annex Gun Range Improvements, project #215 Parks & Rec Add $10,000 in expense to 43299000.77020 for Beckman/Vinewood Dog Parks, project 267 Capital #191 In addition to the above projects, the follavving proiects are be ..g ncluc:ed or undated to reflect future project needs. All new ana revised forms are attached to this staff report: 185-250 CIP Section #29, 30, 35, 36, 40, 42, 177, 209, 210 and 213. *Charts, summaries and descriptions effected bythe above line item changes will be updated to reflect accurate figures. Adding new CIP forms will change the page numbers in the final printed document. OF <O Oq<IFOa`'�P • A net increase of six positions is being requested: Job Title Department +/- Legal Secretary City Attorney +1 Management Analyst Internal Services +1 Sr. Customer Service Rep Internal Services +1 Utility Billing Specialist Internal Services -1 Network Administrator Internal Services +1 Code Enforcement Officer Police +1 Police Records Clerk Police +1 Asst/Assoc Civil Engineer Public Works +1 CDD Program Specialist Community Development +1 Administrative Assistant Community Development -1 Sr. Permit Technician Community Development +1 Permit Technician Community Development -1 Sr. Administrative Clerk PRCS +1 Administrative Clerk PRCS -1 Net Increase 1 +6 OF <O Oq<IFOa`'�P • A 5 -year capital improvement project (CIP) program is included in the budget document. This program includes current projects, requested FY 2021/22 project funding and projected funding needs through FY 2025/26. • Budget and projects are approved for FY 2021/22. Projects and budgets recommended in future years will need future approval by City Council. City of Lodi Capital Improvement Project Program FY 20/21FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 21,506,801 24,668,170 26,025,430 23,815,750 29,462,000 19,452,000 • The FY 2021/22 requested budget: General Fund Budget Police Department 27,157,950 Fire Department 16,392,350 Internal Services Department 5,799,340 Parks, Rec & Cultural Services 5,233,260 Non -Departmental 4,902,740 Public Works Department 3,175,320 Library (from Measure L) 1,663,200 City Manager 810,290 City Attorney 706,690 City Clerk 704,500 Economic Development 528,490 Total General Fund 67,074,130 Other Funds Electric Utility 85,326,720 Wastewater Utility 19,471,630 Water Utility 12,706,150 Transit 12,612,620 Employee Benefits Internal Service 9,661,250 Parks, Rec & Cultural Services 9,480,710 Streets 6,228,250 Self -Insurance Internal Service 6,048,360 Community Development 2,947,940 Capital Outlay Fund 4,126,440 Fleet Services 2,051,090 Vehicle & Equipment Replacement 1,866,030 Library 1,666,850 Debt Service 1,658,720 Community Improvement Grants 1,442,070 Special Revenue & Grants 839,800 Trust and Agency 76,000 TDA 30,000 Grand Total 245,314,760 • Adopt a FY 2021/22 Budget of $245,314,760 • Adopt the Appropriations Spending Limit of $124,907,868 (General Fund limit) • Approve a net increase of 6 additional positions, including job descriptions and salary ranges for 3 new positions • Adopt the 5 -year Capital Improvement Project Program • Adopt the FY 2021/22 Investment Policy • Adopt the FY 2021/22 to 2022/23 Budget and Fiscal Policies Questions? �L �l� • Revenue recovery from Covid-19 impacts • Sales Tax estimates 9.1% more than mid -year • Business License Tax 55.7% more than mid -year • Transient Occupancy Tax 32.2% more than mid -year • Expenditures restored for full service delivery • Net increase of 6 positions • Restoration of PARS contribution as required in fiscal policies Revenue Budget FY 2021/22 Tax Revenues $ 48,649,540 Revenue from Others $ 7,095,320 Operating Transfers In $ 6,478,410 Investments & Property Revenue $ 1,777,140 Charges for Services $ 1,716,540 Fines & Forfeitures $ 843,100 Other Revenue $ 450,580 Licenses & Permits $ 631500 Total $ 67,074,130 Fines & Charges for Investments 81 g ForEeitur� Other Revenue Property Revenue Services Licenses & Permits Operating I -Ni Transfers In Revenue from Others Tax Revenues General Fund Expenses by Department Budget FY 2021/22 Police $ 27,157,950 Fire $ 16,392,350 Non -Departmental $ 11,695,720 Internal Services $ 4,943,050 Public Works $ 3,175,320 City Manager $ 810,290 City Attorney $ 706,690 City Clerk $ 704,500 Economic Development $ 528,490 Library (from Measure L) $ 217,400 Parks, Rec & Cultural Srvs (from Measure L) $ 742,370 Total $ 67,074,130 Noi ..�_,.._ EconomicDevelooment • Net increase of 6 full-time positions Job Title Department +/- Legal Secretary City Attorney +1 Management Analyst Internal Services +1 Sr. Customer Service Rep Internal Services +1 Utility Billing Specialist Internal Services -1 Network Administrator Internal Services +1 Code Enforcement Officer Police +1 Police Records Clerk Police +1 Asst/Assoc Civil Engineer Public Works +1 Customer Service Rep IS - Revenue +1 Net Increase +6 • Restored transfer for Capital Outlay projects - $435,000 •Increased base operational support to Library and Parks, Recreation and Cultural Services • Library: $113,920 funded by Measure L • PRCS: $342,370 funded by Measure L • Restored transfer to Parks Capital Fund • $400,000 funded by Measure L • Restored transfers to Police and Fire Vehicle Replacement Fund • Police: $476,000 • Fire: $750,000 • Restored Police and Fire Transfer to Equipment Replacement • Police: $291,000 • Fire: $93,000 • Restored transfer to Information Systems Replacement Fund • New Network Refresh Replacement Program: $388,000 • New Staff Desktop Replacement Program: $94,530 • Economic Development • 10% match ($20,000) for an SBA center and staff in LODI • Revenues: $7,757,500 • Expenditures: $7,757,500 Measure L Funded Positions FY 2020/21 Budget FY 2021/22 Budget Cost: Police Officers* 20 20 $2,940,130 Firefighters 8 8 $1,062,270 Librarian 1 1 $97,820 Street Maintenance W rk III 0,2 0. $30,770 Total Full -Time 29.E 29.2 $4,130,990 Public Safety Overtime $2,015,510 Part -Time Community Service Officers (2) $72,150 Supplies, Materials, Training $682,560 Library Operations $113,920 Parks, Recreation & Cultural Srvs Operations $342,370 Parks Capital $400,000 Measure LTota l $7,757,500 In FY 2020/21 adopted budget, 6 Police Officer Positions were unfunded due to Covid-19 uncertainties; 2 positions were in Measure L. Funding for those positions was restored FY 2020/21 mid -year adoption , 89,996 0 0 89,996 44,276 45,720 181,240 750,000 85,000 846,240 1,159,375 -313,135 534,721 476,000 435,000 575,721 1,716,621 -1,140,900 346,390 101,800 82,290 365,900 948,977 -583,077 75,798 0 0 75,798 142,788 -66,990 -"Fund Target is the straight line depreciation value of vehicle stock that should beset aside for future renlacements using Fleet Services estimated useful life expectancies 6v vehicle tune. Comm. Dev $4,570 $0 ($4,570) Fire dept. $168,834 $750,000 $581,166 Police Dept. $296,347 $476,000 $179,653 PRCS $67,873 $101,800 $33,927 PW -GF $19,353 $0 ($19,353) Grand Total :i� i $177,305 $1,102,531 ($925,223) *Fund Target is the straight line depreciation ware of city-wide network components that should be set aside forfuture replacements using estimated useful life expectancies by component type. • FY 2021 budget as recommended is projected forward • Includes substantial catchup contributions to PRCS capital, network infrastructure, and new positions • Labor contracts expire at the end of FY 2021/22 or during FY 2022/23 • No assumptions for future contracts are included • Assumes 100% full employment (no vaccancies) Property Taxes - Secured 7.3% 3.7% 3.7% 3.7% 3.7% 3.7% Sales & Use Taxes 7.7% 3.5% 3.5% 3.5% 3.5% 3.5% Transient Occupancy Tax 32.2% 15.0% 10.0% 5.0% 5.0% 5.0% Business License Tax 55.7% 10.0% 10.0% 3.5% 3.5% 3.5% Other Taxes 19.8% 3.0% 3.0% 3.0% 3.0% 3.0% EU Pilot 0.8% 0.5% 0.5% 0.5% 0.5% 0.5% Property Tax in Lieu VLF 10.0% 3.7% 3.7% 3.7% 3.7% 3.7% Transfers In 3.5% 1.2% 1.2% 1.2% 1.2% 1.2% Property Taxes - CFD 29.4% 10% 10% 10% 10% 10% Measure L 11.7% 2.0% 2.0% 2.0% 2.0% 2.0% Other Revenues [1] -53.1% 2.0% 2.0% 2.0% 2.0% 2.0% CategoryExpense Salaries [2] 11.4% 3.0% 2.0% 2.0% 2.0% 2.0% PERS Normal Cost -0.2% 2.0% 2.0% 2.0% 2.0% 2.0% PERS UAL 3.9% 7.5% 7.5% 5.0% 5.0% 5.0% Other Benefits 9.1% 2.5% 2.5% 2.5% 2.5% 2.5% Operations [1] -20.9% 2.0% 2.0% 2.0% 2.0% 2.0% Debt [3] -8.7% -0.4% 0.0% -0.2% 0.1% -9.5% Transfers [4] 47.2% 0.5% 0.5% 0.5% 0.5% 0.5% [1] These line items include the FEMA reimbursements and costs, including the Great Plates Delivered program. [2] Includes all positions added in the FY 21/22 budget remain funded. [3] Does not factor in refunding opportunity for Fiscal year 2021/22. [4] Measure L includes a large transfer to the PRCS fund for capital as opposed to directly paying for the expenses. New IT Network replacement fund increases transfers. Property Taxes 11,900,000 12,768,070 13,241,000 13,731,000 14,240,000 14,767,000 15,314,000 Sales & Use Taxes 13,026,000 14,035,240 14,527,000 15,036,000 15,563,000 16,108,000 16,672,000 Transient Occupancy Tax 605,000 800,000 920,000 1,012,000 1,063,000 1,117,000 1,173,000 Business License Tax 1,155,810 1,800,000 1,980,000 2,178,000 2,255,000 2,334,000 2,416,000 Other Taxes 2,992,150 3,583,190 3,691,000 3,802,000 3,917,000 4,035,000 4,157,000 EU Pilot 7,375,170 7,432,690 7,470,000 7,508,000 7,546,000 7,584,000 7,622,000 Property Tax in Lieu VLF 5,796,960 6,375,000 6,611,000 6,856,000 7,110,000 7,374,000 7,647,000 Transfer In 6,256,620 6,478,410 6,557,000 6,636,000 6,716,000 6,797,000 6,879,000 Property Taxes - CFD 378,420 489,630 539,000 593,000 653,000 719,000 791,000 Measure L 6,932,000 7,740,720 7,896,000 8,054,000 8,216,000 8,381,000 8,549,000 Other Revenues 11,881,550 5,571,180 5,683,000 5,797,000 5,913,000 6,032,000 6,153,000 [1] Actual Revenue Growth for FY 2021122 is projected at approximately 8.2%. This excludes FEMA related reimbursements. 5 Year Forecast - Expenses se Total Expenditure FY 20121 B FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 FY 26127 66.745.610 67.066.630 69.085.504 70.893.119 72.552.982 74.263.187 75.926.517 Expenditure Growth [3] 14.0% 0.5% 3.0% 2.6% 2.3% 2.4% 2.2% Revenue - Expenditure Total Fund Balance 1,554,070 24.994.712 7,500 25.002.212 29,496 25.031.708 309,881 25.341.589 639,018 25.980.607 984,813 26.965.420 1,446,483 28.411.904 Catastrophic Reserve [4] 4,909,414 4,746,673 4,897,520 5,051,920 5,198,080 5,349,360 5,505,920 Economic Reserve [4] 4,909,414 4,746,673 4,897,520 5,051,920 5,198,080 5,349,360 5,505,920 Measure L Catastrophic Reserve [5] 554,560 619,258 631,680 644,320 657,280 670,480 683,920 Measure L Economic Reserve [5] 554,560 619,258 631,680 644,320 657,280 670,480 683,920 Pension Stabilization Fund [6] 14,066,763 14,270,351 13,973,308 13,949,109 14,269,887 14,925,740 16,032,224 DIVCA - - - - - - - [1] Operations expenditures in FY 2021 include Great Plates Delivered and other COVID expenditures. [2] Does not inclue any assumptions for refunding or new debt issuance. Refunding opportunity available spring of 2022. [3] Expenditure growth net of FY 2021 COVID expenditures is 7.2%, or $4.5 million. [4] Per policy, this is set at 8% of revenue, catostrophic reserves are prioritize, then economic reserves, then unassigned. [5] See footnote 2. Measure L has the same provisions as the General fund once the reserve is fully funded. [6] Earnings accumulate at 6.25%. Per the Pension Stabilization Policy, all reserves in excess of 16% in the General Fund are deposited at the close of the year. Investments from budget savings from annual UAL payments are not factored in this analysis. Draws of �• stabilization reserves are needed from FY 2021122 through FY 2025126 to balance the General Fund. Draws only exceed anticipated annual earnings in FY 2023 and FY 2024. Risks • COV I D • Is there a lingering impact to residents behavior? • Will it come back this summer/fall? • Labor Negotiations • CalPERS UAL or other assumptions changes • Pace of Development • Additional service needs/demands from the public Opportunities • Economic recovery • Revenue enhancement • Debt refinancing 16 Estimate Changes in Cash Balance Forthe Fiscal Year Ended 1une34, 2022 With Actuals for FY2019-20 and Year End Esti mate for FY2020-21 Ne. Difference i evenues Less Er(pencli.ures) 2,781,772 (1,333,214) (3,598,330) Restricted Cash Balance - - - Ending Cash Balance Unreserved 39,791,637 38,458,427 34,860,097 Cash Balance as a percentageof expenses: 52 47% 41% Estimated 2419-24 202421 2421 -ZZ Electric Utility Actual PiEtuais Bunk t Cash 3alance 3eginningCash 3alance Unreserved 37,009,866 39,791,637 38,458,427 ;evenLies 78,907,769 84,415,884 81,728,390 ErcpenCli.Lires 76,125,998 81,749,094 85,326,720 Ne. Difference i evenues Less Er(pencli.ures) 2,781,772 (1,333,214) (3,598,330) Restricted Cash Balance - - - Ending Cash Balance Unreserved 39,791,637 38,458,427 34,860,097 Cash Balance as a percentageof expenses: 52 47% 41% • Revenues are $1,312,510 higher than FY 2020/21 estimated actuals ■ Customer charges - $1,640,240 higher ■ Work for others - $145,000 lower ■ Low Carbon Fuel Proceeds - $93,000 lower ■ Development Impact Fees - $321,910 higher ■ Greenhouse gas - $288,180 lower • Expenses are $3,577,,630 higher than FY 2020/21 estimated actuals ■ Salary & benefits - $137,220 lower (due to higher transfer to capital projects) ■ Supplies, materials & services - $2,601,110 higher ■ $1.8m higher Generation and Transmission costs ■ Insurances - $46,970 higher (PL/PD costs) ■ Transfer Out - $262,680 higher ■ Cost of Services $173,520 ■ Network and Desktop Computer Replacement $89,160 ■ Capital projects & equipment - $804,460 higher • 12kV Overhead - $2,410,000 • 12kV Underground - $165,000 • Streetlight Maintenance - $50,000 • Work for Others - $550,000 • 230kV Interconnection — $20,000 • 1267 Feeder Extension - $245,000 • Substation Load Tap Charger — $159,000 • LED Streetlight Improvements - $250,000 • Henning Feeder Extension - $765,000 • 60kV Breaker Replacement - $2,000,000 • Security Improvements - $50,000 • Warehouse Roof Replacement - $402,500 'J. • Replace Backyard Machine/Trailer - $233,000 • Replace Plotter - $15,000 • New Field Meter Tester - $16,000 • Replace #2 60' Bucket Truck - $233,000 • Replace #09-023 Bucket Truck - $180,000 • New 95' Flatbed Crane Truck - $320,000 P urp ose Basi s 2 -02 -112 -2 - Operating Reserve 90 days cash 19,769,060 Capital Reserve Largest di stri but ion systern contingency 1,000,000 NCPA General Operating Reserve N CPA identified items 4,137j830 Total Target 24,905,890 Est mated FY 2021/22 Reserve 34,86G,897 Estimate Changes in Cash Balance Forthe Fiscal Year Ended June 30, 2022 With Actuals for FY201,920 and Year End Estimatefor FY2020-21 Net Difference (Revenues Less Expenditures) 1,746,393 (5.906.790) 2,351,410 Restricted Cash Balance - - - EndingCash Balance Unreserved 23,765,317 17,858,527 20,200,937 Cash 9@1ance as a p erce nt ag e of expenses: 1551 84% 1591 O160 V Esti mat -d 2419-24 201421 2021-22 Water Utility Actual Actuals Budget Cash Balance Beginning Cash Balance Unreserved 22,018,924 23.765.317 17.858,527 Revenues 17,071,564 15,276,250 15,057,560 Expenditures 15,325,171 21,183,040 12,706,1513 Net Difference (Revenues Less Expenditures) 1,746,393 (5.906.790) 2,351,410 Restricted Cash Balance - - - EndingCash Balance Unreserved 23,765,317 17,858,527 20,200,937 Cash 9@1ance as a p erce nt ag e of expenses: 1551 84% 1591 O160 V • Revenues are $218,690 lower than FY 2020/21 estimated actuals ■ Reimbursable charges- $265,310 lower ■ Developer Impact fees - $99,700 higher ■ Customer accounts - $161,910 higher ■ Investment earnings - $178,690 lower • Expenses are $8,476,,890 lower than FY 2020/21 estimated actuals ■ Salary &benefits - $86,180 lower (this is due to mid -yr UAL extra payment) ■ Supplies, materials &services - $381,560 higher ■ Debt service - $146,400 lower ■ Transfer Out - $106,460 higher ■ Cost of Services $61,470 ■ Network and Desktop Computer Replacement $44,990 ■ Capital projects & equipment - $8,736,010 lower • Water Meter Multi -Family Program — $1,000,0000 • Water Taps/Main Replacements - $125,000 • PCE/TCE Oversight - $100,000 • PCE Remedial Measures - $150,0000 • Well 14 Pump Rehab - $170,000 • Well 17 Pump Rehab - $250,000 • Water Project Planning - $25,000 OF <O • Forklift for loading and unloading deliveries - $40,000 • New Crew Cab Pickup Truck for Water Service Technician duties - $40,000 • Target is 25% of operating expenses • Target for FY 2021/22 equals $2,675,288 • FY 2021/22 estimated available operating reserve is $4,058,446 Estimate Changes in Cash Balance Forthe Fiscal Year Ended lune 30, 2022 With Actu als for FY2019-20 and Year End Esti mate for FY2020-21 Net D ifference (Revenues Less Expenditures) 4,907,420 (3,7-54,130) (1,026,000) Restricted Cash Balance - - - Ending Cash Balance Unreserved 24,322,129 24,557,999 19,531,999 Cash Balance as a percentageof expenses: 157% 89% 109% Estimated 2413-24 242421 2021-22 Wastewater Utility Actual Actuals Bud; et Cash Balance Beginning Cash Balance Unreserved 19,414,709 24,322,129 211.337.999 Revenues 19,441,300 19,244x800 IS.==3.6 Dv Expenditures 14,533x880 23,048,930 19,47_.6 Net D ifference (Revenues Less Expenditures) 4,907,420 (3,7-54,130) (1,026,000) Restricted Cash Balance - - - Ending Cash Balance Unreserved 24,322,129 24,557,999 19,531,999 Cash Balance as a percentageof expenses: 157% 89% 109% • Revenues are $799,170 lower than FY 2020/21 estimated actuals • Development Impact fees - $557,460 lower • Investment earnings - $157,840 lower • Infrastructure Replacement - $50,000 lower • Customer Accounts - $9,730 higher • Expenses are $3,537,300 lower than FY 2020/21 estimated actuals • Salary &benefits - $79,770 lower (this is due to in increases in transfer of staff costs to other funds/capital) ■ Supplies, materials &services - $246,820 lower ■ Debt Service - $5,290 lower ■ Insurances - $54,430 higher (PL/PD costs) ■ Transfer Out - $46,020 higher ■ Network and Desktop Computer Replacement ■ Capital projects & equipment - $3,316,450 lower • Wastewater Main Replacement #9 - $2,000,000 • Electrical/SCADA Improvements - $1,000,000 • Storm Drain Trash Handling - $750,000 • Irrigation System Improvements - $750,000 • White Slough Office Roof - $316,200 • Sewer Lift Station Rehab - $250,000 • Kofu Storm Water Pump Rehab - $200,000 • Dredge Pond 1/EQ Pond 1 - $200,000 • Project Planning and Misc. Projects - $125,000 • Digester #4 Lid Rehab - $100,000 • Laurel Avenue Storm Drain Relocate - $100,000 • Wastewater Taps/Relocations -$75,000 OF <O • Replacement/maintenance of existing process equipment at Wastewater Plant - $110,000 • New commercial mower for basins - $210,000 • Replacement of vehicle #04-146 pickup - $30,000 • Target is 25% of operating expenses • Target for FY 2021/22 equals $3,238,858 • FY 2021/22 estimated available operating reserve is $10,932,886 OF <O Estimate Changes in Cash Balance Forthe Fiscal Year Ended lune 30, 2022 With Actuals for FY2419-24 and Year End Estimate for FY2020-21 Net Difference (Revenues Less Expenditures) 350,414 1,772,120 (101,290) Restricted Cash Balance - - - EndingCashBalanceUnreserved 1,417,324 3,189,444 3,08.8,154 Cash Balance as apercentageof expenses: 30h 69% 24% OF <O Estimat-d 2419-24 2020-Zl 2D21-22 Transit Actual Artuais Dudtee Cash Balance Beginning Cash Balance Unreserved 1,066,910 1,417,324 3,189,444 Revenues 5,127,172 6,392,290 12,511,330 Expenditures 4,776,759 4,620,170 12,612,620 Net Difference (Revenues Less Expenditures) 350,414 1,772,120 (101,290) Restricted Cash Balance - - - EndingCashBalanceUnreserved 1,417,324 3,189,444 3,08.8,154 Cash Balance as apercentageof expenses: 30h 69% 24% OF <O • Revenues are $6,119,,040 higher than FY 2020/21 estimated actuals ■ Transportation Dev Act - $1,150,000 higher ■ Federal grants - $6,579,520 higher ■ Measure K - $1,400,000 higher ■ Prop 16 - $225,130 lower ■ Federal Stimulus — CARES - $3,442,340 lower ■ CMAQ- $750,000 higher OF <O • Expenses are $7,992,,450 higher than FY 2020/21 estimated actuals ■ Salary &benefits - $20,840 higher ■ Supplies, materials &services - $985,050 higher ■ Insurances - $78,380 higher (PL/PD costs) ■ Transfer Out - $49,540 lower ■ Cost of services $55,870 lower ■ Network and Desktop Computer Replacement - $6,330 ■ Capital projects & equipment - $6,957,720 higher • Intelligent Transit System - $600,000 • Video Surveillance Cameras - $300,000 • Transit Facility Repairs/Upgrades - $300,000 • Transit Station Repairs - $40,000 OF <O • Replace (12) 27' and (6) 32' busses - $6,900,000 • Equipment for Transit Fleet Maintenance - $50,000 • Replace #04-047 Transit utility vehicle - $45,000 Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2022 With Actuals for FY2019-20 and Year End Estimates for FY2020-21 Estimated 2019-20 2020-21 2021-22 Streets Fund Actual Actuals Budget Fund Balance Beginning Fund Balance 9,541,948 12,742,160 11,815,060 Revenues 9,753,406 10,867,500 7,635,050 Expenditures 6,553,194 11,794,600 6,228,250 Net Difference (Revenues Less Expenditures) 3,200,212 (927,100) 1,406,800 Restricted Fund Balance 241,851 284,631 284,631 Ending Fund Balance Unreserved 12,500,309 11,530,429 12,937,229 Fund Balance as a percentage of revenue: 128% 106% 169% • Revenues are $3,232,,450 lower than FY 2020/21 estimated actuals ■ Federal Grants - $1,645,600 lower (Lodi/Mills project) ■ Measure K - $1,396,780 lower (Church Street project) ■ Development Impact Fees - $400,610 lower ■ Gas Taxes — $274,460 higher ■ State Grants - $258,000 higher ■ TDA General Allotment - $200,000 lower ■ Investment earnings - $117,070 lower OF <O • Expenses are $5,566,350 lower than FY 2020/21 estimated actuals ■ Salary & benefits - $36,340 lower (mid -yr 1 time UAL payment; higher transfers to capital and other funds) ■ Supplies & Services - $98,320 lower ■ Insurances - $18,520 higher (PL/PD costs) ■ Transfer Out - $28,630 higher ■ Network and Desktop Computer Replacement $20,710 ■ Capital projects & equipment - $5,478,840 lower OF <O • Turner/California Signal - $380,000 • Concrete Paver Maintenance - $30,000 • Garfield Street Safe School Route - $800,000 • Pavement Resurfacing - $1,220,000 • Annual Pavement Maintenance—$100,000 • Sidewalk Repair —$70,000 • Signal Preventative Maintenance - $150,000 • Pavement Crack Seal - $50,000 • Downtown Concrete Cleaning - $25,000 • Streets Project Planning - $25,000 • Reverse Frontage Wall Repair - $25,000 300 - 315 Funds - Streets FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 Beginning Fund Balance 12,742,160 11,815,060 13,221,860 12,855,948 13,673,989 9,082,183 Revenues 10,867,500 7,635,050 5,410,000 5,340,000 5,245,000 5,190,000 Expenditures/Committed Projects 11,794,600 6,228,250 5,775,913 4,521,958 9,836,806 4,520,896 Net Difference (927,100) 1,406,800 (365,913) 818,042 (4,591,806) 669,104 Ending Est Fund Balance 11,815,060 13,221,860 12,855,948 13,673,989 9,082,183 9,751,287 CIP Projects FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 Annual Pavement Maint 135,821 100,000 100,000 100,000 100,000 100,000 Annual Street Striping 80,000 80,000 80,000 Church St Diet 1,551,978 Concrete Paver Maint 60,000 30,000 30,000 30,000 30,000 Downtown Concrete Cleaning 25,000 25,000 25,000 25,000 25,000 25,000 Fog Seal 40,000 Garfield St Safe School Route 800,000 Grapestake Fence Rep 50,000 Guild/Victor traffic signal 762,680 Ham/Elm Signal Mod 40,000 250,000 Harney Ln Widening Project 100,000 5,400,000 Lodi Ave Signal Coordination 160,000 Lodi Ave/Mills Resurfacing 1,870,000 Lower Sac Median Rep 100,000 Lower Sac Street Improvmnt 1,500,000 Pavement Crack Seal 50,000 50,000 50,000 50,000 50,000 50,000 Pavement Resurfacing 1,354,706 1,220,000 Reverse Frontage Wall rep 52,588 25,000 25,000 25,000 25,000 25,000 Sidewalk Grinding 100,000 Sidewalk Repair 79,139 70,000 70,000 70,000 70,000 70,000 Signal Preventative Maint 270,975 150,000 150,000 150,000 150,000 150,000 Streets Project Planning 25,000 25,000 25,000 25,000 25,000 25,000 Turner/Ca Signal 100,000 380,000 Citywide Bike Detection * 768,591 Citywide Bike Lanes & Pedestrian Improv * 78,321 • Citywide Pavement Repairs * 390,451 • Lockeford Street (UPPR to Stockton) * 248,682 Westgate Drive Improvements * 19,907 Streets Operating Est 3,580,762 3,353,250 3,520,913 3,696,958 3,881,806 4,075,896 11,794,600 6,228,250 5,775,913 4,521,958 9,836,806 4,520,896 * Projects closing of end of FY21 �� Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2022 With Actuals for FY2019-20 and Year End Estimates for FY2020-21 Net Difference (Revenues Less Expenditures) 885,893 60,580 76,870 Restricted Fund Balance 255,160 Estimated 300,294 Ending Fund Balance Unreserved Fund Balance as a percentage of revenue: 2019-20 2020-21 2021-22 Community Development Actual Actuals Budget Fund Balance Beginning Fund Balance 3,809,853 4,695,746 4,756,326 Revenues 3,370,395 2,922,260 3,024,810 Expenditures 2,484,502 2,861,680 2,947,940 Net Difference (Revenues Less Expenditures) 885,893 60,580 76,870 Restricted Fund Balance 255,160 300,294 300,294 Ending Fund Balance Unreserved Fund Balance as a percentage of revenue: 4,440,587 132% 4,456,032 152% 4,532,902 150% • Revenues are $102,550 higher than FY 2020/21 estimated actuals ■ Charges for Services - $72,700 higher ■ Plan Check Fees - $49,100 higher ■ Federal Grants - $60,820 lower ■ Brownfields grant — remaining balance at yr 2 of 3 yr grant ■ Operating Transfer In - $60,570 higher ■ Reinstated entire $165,000 transfer from General Fund ■ Licenses and Permits - $62,300 higher ■ Building Permits $56,000 ■ Investment Earnings - $32,200 lower • Expenses are $86,260 higher than FY 2020/21 estimated actuals ■ Salary &benefits - $244,810 higher ■ Youth Outreach Worker fully funded in FY 22 ■ Administrative Clerk added at mid -year ■ FY 22 staff changes listed on next slide ■ Supplies, materials & services - $177,940 lower ■ Miscellaneous Professional Services - $143,740 lower ■ Transfer Out - $23,440 higher ■ Network and Desktop Computer Replacement $23,900 OF <O • Changes to full-time positions Job Title Department +/- CDD Program Specialist Community Development +1 Sr. Permit Technician Community Development +1 Administrative Assistant Community Development -1 Permit Technicial Community Development -1 Net Increase/Decrease I 1 0 Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2022 With Actuals for FY2019-20 and Year End Estimates for FY2020-21 Net Difference (Revenues Less Expenditures) 227,942 (80,370) (6,220) Restricted Fund Balance 143,880 169,331 169,331 Ending Fund Balance Unreserved 549,261 443,440 437,220 Fund Balance as a percentage of revenue: 35% 29% 26% * FY 21 estimates pending $29,678 of American Rescue Plan Act of 2021 funding Estimated 2019-20 2020-21 2021-22 Library Fund Actual Actuals * Budget Fund Balance Beginning Fund Balance 465,199 693,141 612,771 Revenues 1,568,176 1,507,090 1,660,630 Expenditures 1,340,234 1,587,460 1,666,850 Net Difference (Revenues Less Expenditures) 227,942 (80,370) (6,220) Restricted Fund Balance 143,880 169,331 169,331 Ending Fund Balance Unreserved 549,261 443,440 437,220 Fund Balance as a percentage of revenue: 35% 29% 26% * FY 21 estimates pending $29,678 of American Rescue Plan Act of 2021 funding • Revenues are $153,540 higher than FY 2020/21 estimated actuals ■ Operating Transfer In - $197,020 higher ■ Library Fines & Fees - $20,000 higher ■ Fees were down last year due to COVID closures ■ Literacy Grant - $54,180 lower ■ Additional grant funds were received in FY21 ■ Investment earnings - $3,500 lower ■ Donations- $5,800 lower ■ Operating Transfer In - $197,020 higher ■ FY 21 transfer level restored with an increase for operational costs • Expenses are $79,390 higher than FY 2020/21 estimated actuals ■ Salaries &Benefits- $139,860 higher ■ Part-time Salary - $97,540 higher ■ Supplies and Services - $49,100 higher ■ Insurances - $6,450 higher (PL/PD costs) ■ Transfers Out - $91,020 lower ■ $6,880 for computer replacement ■ FY21 included $100,000 transfer from Library Capital to Library Operating Mobile Library: • Onetime costs - $310,000 Evaluation and Needs assessment - $20,000 • Initial startup materials - $40,000 • Design and Construction - $250,000 • Ongoing operations costs - $190,000 One Driver and one Co -Pilot (PT total of 40 Hours/week) - $80,000 • Ongoing operations (collection, maintenance, admin) - $85,000 • Annual Vehicle Replacement - $25,000 Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2022 With Actuals for FY2019-20 and Year End Estimates for FY2020-21 Net Difference (Revenues Less Expenditures) 119,750 (102,500) (2,045,580) Restricted Fund Balance 443,383 521,812 521,812 Ending Fund Balance Unreserved 774,115 593,187 (1,452,393) Fund Balance as a percentage of revenue: 11% 10% -20% * FY21 estimates pending $2,242,066 of American Rescue Plan Act of 2021 funding Estimated 2019-20 2020-21 2021-22 Parks, Recreation & Cultural Services Fund Actual Actuals * Budget Fund Balance Beginning Fund Balance 1,097,749 1,217,499 1,114,999 Revenues 6,937,601 6,239,250 7,435,130 Expenditures 6,817,852 6,341,750 9,480,710 Net Difference (Revenues Less Expenditures) 119,750 (102,500) (2,045,580) Restricted Fund Balance 443,383 521,812 521,812 Ending Fund Balance Unreserved 774,115 593,187 (1,452,393) Fund Balance as a percentage of revenue: 11% 10% -20% * FY21 estimates pending $2,242,066 of American Rescue Plan Act of 2021 funding • Revenues are $1,195,880 higher than FY 2020/21 estimated actuals ■ Charges for Services - $875,390 higher ■ Program Fees were down in FY 21 due to COVID closures ■ Parks and HSS Rental Income - $231,300 higher ■ Rental Income was down last year due to COVID ■ Other Revenue- $97,500 lower ■ FY21 included $100,000 from a trust/donation account ■ Operating Transfer In - $186,690 higher ■ FY 21 transfer level restored with an increase for operational costs • Expenses are $3,138,960 higher than FY 2020/21 estimated actuals ■ Salaries & Benefits- $1,046,170 higher ■ Part-time Salary - $828,000 higher ■ Eliminating 1Admin Clerk and adding 1SrAdmin Clerk ■ Supplies and Services - $298,630 higher (Post-COVID increased activities) ■ Insurances - $22,090 higher (PL/PD costs) ■ Transfers Out - $1,769,570 higher ■ $1,500,000 for capital projects ■ $15,630 for computer replacement • Recent PRCS Capital improvements have been funded by grants or out of operating savings This is an unsustainable model to keeping parks facilities in a safe, working and useable condition • Historic American Rescue Plan Act funding allowed $1.6m m to be transferred from PRCS operating reserves to capital and $400,000 to be transferred from the General Fund Given a positive overall financial outlook in the General Fund, staff is recommending developing a minimum $400,000 annual PRCS capital program; large scale projects with longer term benefit were given priority in the current year due to this historic infusion; Allocations for FY 2022 PRCS Capital projects were based on a combination of safety needs and revenue generation; Items that were a safety concern for revenue generating facilities were given priority; Keeps money coming into the department to continue both the operating capital programs long term 432 Fund - Parks Capital Five Year Forecast FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 Beginning Fund Balance Revenues Expenditures Net Difference Ending Fund Balance CIP Projects Beckman/Vinewood Dog Pks Blakely Park Sports Field Fibar Cover Replace Grape Bowl Bleachers Grape Bowl Turf Replace HSS - Create Hall Flooring HSS Pool Climate Control HSS Roof Phase 1 HSS Wireless Access Points Legion Park Comm Room Legion Playground Equip Lodi Lake Nature Area Lodi Lake Southside Improv Park Facility Demolitions Park Tree Trimming Salas Barrier Gates Salas Pk Sports Lighting Softball Com Parking Lot Zupo Field Improvements 612,720 395,259 308,259 (2,230,491) (4,619,241) (5,189,241) 12,880 2,080,000 400,000 400,000 400,000 400,000 230,341 2,167,000 2,938,750 2,788,750 970,000 1,020,000 (217,461) (87,000) (2,538,750) (2,388,750) (570,000) (620,000) 395,259 308,259 (2,230,491) (4,619,241) (5,189,241) (5,809,241) 20,000 30,000 40,000 40,000 40,000 40,000 90,000 780,000 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 OF,( 100,000 488,750 30,000 250,000 250,000 250,000 250,000 20,000 30,000 40,000 40,000 40,000 40,000 90,000 780,000 880,000 50,000 105,000 1,230,000 680,000 730,000 230,341 2,167,000 2,938,750 373,750 420,000 27,326 140,000 300,000 10,000 1,500,000 OF,( 488,750 180,000 250,000 250,000 250,000 250,000 13,015 2,000 780,000 370,000 405,000 105,000 1,230,000 680,000 730,000 230,341 2,167,000 2,938,750 2,788,750 970,000 1,020,000 OF,( PROPOSED ZUPO FIELD MASTER PLAN RENOVATION IMPROVEMENTS: (as of 04-26-2821) (Projected Total Build -Out Cost: $5,$55,DDB) PHASE 1: FY 22 -$1,4 Million Direct Fire Damaged Items: / (Insurance Coverage) 1. Replace Main Grandstand Seating Area & Concrete Foundation System behind Home Plate (Fire Damage) 2. Replace Press Bax and Storage Room (320 sf+/-) under Press Box (Fire Damage) 3. Replace Alarm System & Keypads at Press Box and Storage Room under Press Box (Fire Damage) 4. Replace Backstop Skirting and Padding Panels (Fire Damage) 5. Replace P.A. Sound System (Fire Damage) 6. Replace "L"- Screens, Base Screens, Field Tarps, Rakes, Shovels, Screen Drags, Portable Pitching Mounds, Field Striping Paint Machine and Hoses (Fire Damage) [These items wil 16e stared in the Proposed Storage Room (141 sf +f-) under the Press Box and the Proposed Sturage Rooms {38 sF+f- each] within the Proposed Dugouts] [Proposed Replacement Storage Space is 220 sr +f-] Building Permit Required Items - (Current Code): / (Insurance Coverage) 7. ADA Path of Travel Improvements (Lawrence Avenue Parking Stalls to Front Gate to New Grandstands/Press Box, to New Dugouts and Bullpen Areas, to Existing Concession Stand Area, to Existing Restroom Facility, to Existing Batting Cage ) (ADA) S. Remove Non-Access!hIe Raised Bleachers on I,' and 3'd Base Sides for New "At -Field Grade" Dugouts (ADA) 9. Remove Non -Accessible Sunken Dugouts on 111 and V Base Sides for New Dugouts {ADA) 10. *Construct New "At -Field Grade" Dugouts with Storage Rooms on 1't and 3- Base Sides (ADA) (' To- Replace Storage Area Lost with Fre Damage, Under Press Box and Raised Grandstand Areal 11. Remove "Old" Concrete Rip -Rap Retaining Wall on 3"d Base Side (Width of Path of Travel Needs) (ADA) 12. Construct New Structural Keystone Retaining Wall on 31d Base Side (ADA) 13. Washington Street Off -Site Improvements (Sidewalk Work) per LMC #15-44.050 / Construction Valuation (ADA) Additional Items Desired for Faciiity: / (City Funds and Donation Funds) • �• 14. Washington Street Improvements- storm drain line infrastructure; water and sewer line upgrades within the street (city) 15. Address Underground Utilities (Storm - Electrical - Water and Sewer) (city) 16. Miscellaneous Concrete Flat Work -ADA sidewalks (City) • Grape Bowl Turf Replacement - $880,000 FY 2021/22 is the last year the turf is playable if not replaced due to visible wear/tear which are safety issues; without replacement it will not be attractive rental asset • Legion Park Community Room - $140,000 Central location and indoor space make this a prime rental opportunity for community; current condition significantly reduces rental potential; no repairs or renovations in over 30 years; needs sewer, electrical, restroom fixtures, cabinets, windows, doors and flooring to become an attractive rental asset • Hutchins Street Square Roof - $420,000 Parks/ $100,000 General Fund 25 year old original roof is in need of replacement; a longer term 30 year roof will be installed; HSS is the prime revenue generating facility and PRCS operations would not be sustainable absent its rental income • Tree Trimming - $180,000 The age and size of the City's park trees present substantial liability if not properly maintained 431 Fund - General Fund Capital Five Year Forecast FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 Beginning Fund Balance 2,187,281 1,850,966 552,526 (2,479,474) (8,144,474) (11,959,474) Revenues 657,806 635,000 435,000 435,000 435,000 435,000 Expenditures/Committed Projects 994,121 1,933,440 3,467,000 6,100,000 4,250,000 - Net Difference (336,315) (1,298,440) (3,032,000) (5,665,000) (3,815,000) 435,000 Ending Est Fund Balance 1,850,966 552,526 (2,479,474) (8,144,474) (11,959,474) (11,524,474) CIP Projects FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 Animal Shelter Kennels 50,000 Animal Shelter Roof Repair (temporary) 50,000 New Animal Shelter 300,000 1,100,000 4,000,000 4,000,000 Fire Station #2 Cameras 10,000 HSS Energy Mgmt 180,000 HSS Roof Phase 1 100,000 Card Access System 60,000 120,000 Church St Parking Lot Imp (rebuild) 400,000 City Hall Air Duct Cleaning 20,000 20,000 City Hall Service Counter 300,000 Fire Station #3 Driveway Imp 30,000 Fire Station #3 Generator 20,000 160,000 Firefighter Memorial 31,000 Firehouse Security Gates 75,000 City Hall Sewer Pump Upgrade 100,000 City Hall Annex Boiler Replacement 160,000 City Hall HVAC Duct Cleaning 32,000 Carnegie Forum Water Heater Replacement 5,000 Facilties Office Remodel 10,000 PD HVAC Replacement 250,000 250,000 PD Training Facility (WSWPCF) Design 337,440 1,925,000 2,100,000 Annex Gun Range Improvements 300,000 Miscellenous projects 25,000 Police Station Intercom Replacement * 10,078 Gun Range * 18,815 Carnegie Forum Interior Improvements * 10,000 • IAT Room HVAC Imp * 57,750 ' Civic Center Security Camera * 76,878 Magellan-Broadbank Feasibility Study * 50,600 994,121 1,933,440 3,467,000 6,100,000 4,250,000 • PRCS CIP Master List of Unfunded Projects Needs Project Description Urgent Improvement Community Enhancement Totals Paygrounds - 16 playgrounds 710,792 2,116,812 1,348,949 4,176,553 Site improvements throughout park system 1,009,636 3,056,926 4,082,127 8,148,689 Ashphalt - maintenance and replacement 1,416,396 939,076 129,707 2,485,179 System-wide Repairs and Maintenance 539,580 498,073 1,789,951 2,827,605 Demolition of Structures/Amenities 233,472 - - 233,472 Roofing Projects - 233,472 - 233,472 ADA Transition Plan 530,241 959,829 1,957,014 3,447,083 Planning & Misc 259,413 - 498,073 757,486 Total 4,699,531 1 7,804,189 1 9,805,821 1 22,309,540 • Lodi Lake Southside Parking Lot Resurfacing This project is part of the Lodi Lake Southside Improvement project listed in FY 23. Only partially funded • Basketball Court at Blakely Park This project is part of the Blakely Park Sports Field project that is being funded through a State of California grant. Project is currently in plan check stage with Public Works • Lighting for existing Cricket Court at Beckman Park (4) Pole lighting configuration - $590,000 • Water station at Beckman & Vinewood Dog Parks Vinewood currently has a drinking fountain; $10,000 to install water station at Beckman Community Needs Enhancement Project Description Urgent Improvement Projects Totals Playgrounds 1 English Oaks Common Site Work & Playground Replacement 285,355 285,355 2 Katzakian Playground Replacement 207,531 207,531 3 Beckman Park Site Work & Playground Replacement 207,531 207,531 4 Replacement Parts/Worn Apparatus/Unforeseen Safety Issues 10,377 41,506 51,883 103,765 5 Century Meadows Park Playground Replacement 259,413 259,413 6 Century Park Playground Replacement 259,413 259,413 7 Lawrence Park Playground Replacement 259,413 259,413 8 Hale Park Playground Replacement 259,413 259,413 9 Van Buskirk Playground Replacement 207,531 207,531 10 Salas Park Playground Replacement 259,413 259,413 11 Rose Gate Park Playground Replacement 259,413 259,413 12 Hutchins Street Square West Park Playground Replacement 259,413 259,413 13 Emerson Park Playground Replacement 259,413 259,413 14 Lodi Lake Park Playground Replacement 259,413 259,413 15 Blakely Park Playground Replacement 259,413 259,413 16 Peterson Playground (West) Replacement 259,413 259,413 17 Peterson Playground (East) Replacement 311,296 311,296 Total Playground Needs: 710,792 2,116,812 1,348,949 4,176,553 Community Needs Enhancement Project Description Urgent Improvement Projects Totals Site Improvements - Continued 1 Video Surveillance - various parks and properties 2 Restroom Upgrades/Partitions & Fixtures 3 Park furniture/Shelter repairs and Replacements 4 Salas Park Restroom Upgrades 5 Beach Gazebo Renovations/Tables 6 Beach House + Beach Operational Upgrades 7 Replace/Repair/Install Drinking Fountains 8 Park Rules and Way Signage; Blakely & Enze Pool Monument Signs 9 Blakely Pool Operations/Program Equipment 10 (3) Park Rental Buildings Tables & Chairs 11 Lodi Lake Park Master Plan w/ Westside 7 Acre Expansion 12 Emerson Park Restroom Replacement 13 Lodi Lake Office 14 Blakely Park Aquatic Restroom Renovation 15 Misc Park Restoom Repairs and Maintenance 16 Enze Pool/Pulsar Chlorine System 17 Kofu Park Community Building 18 Lodi Lake Tot Pool/New Controller 19 Hale Park Community Building 518,827 259,413 259,413 1,037,653 103,765 103,765 259,413 124,518 155,648 539,580 20,753 20,753 20,753 20,753 17,640 17,640 10,377 41,506 51,883 103,765 41,506 41,506 10,377 10,377 6,226 6,226 518,827 1,556,480 2,075,306 311,296 311,296 25,941 25,941 83,012 415,061 498,073 25,941 25,941 15,565 15,565 7,264 7,264 7,264 7,264 2,075 2,075 Community Needs Enhancement Project Description Urgent Improvement Projects Totals Site Improvements - Continued 20 Lodi Lake Riverfront Trail 700,416 700,416 21 Lodi Lake South Restroom Replacement 415,061 415,061 22 Vinewood Park Restroom Replacement w/ ADA Access 518,827 518,827 23 South Pool at Blakely Park - Renovation 259,413 259,413 24 Legion Park Improvements 186,778 186,778 25 Hale Park Improvement 166,024 166,024 26 Kofu Park Improvements 171,213 171,213 27 Zupo Field Lighting Replacement 155,648 155,648 28 Chapman Field Repairs 166,024 166,024 29 Park Maintenance Shop Improvements 77,824 77,824 30 HSS Pool Liner Replacement 77,824 77,824 31 Tennis Courts Lighting Conversion to LED (Energy Efficient) 103,765 103,765 32 Lodi Lake Irrigation Booster Pumps (2) 72,636 72,636 33 Irrigation Booster Pump Motor Replacement (4 Parks) 103,765 103,765 34 Peterson Park Tennis Court 31,130 31,130 35 HSS: External Digital Marquee Sign 25,941 25,941 36 Theatre: Stage Lighting 24,385 24,385 37 Beach Sand Cleaning Machine 12,452 12,452 38 Lodi Lake Office/Shop Buildings (Roof Gutter Replacement) 8,820 8,820 Total Site Improvements 1,009,636 3,056,926 4,082,127 8,148,689 Annual System -wide Repairs and Maintenance 1 Irrigation System Uprgrades and Repairs - Vinewood & Beckman 2 Concrete Sidewalk Safety Hazards 3 Irrigation System Upgrades and Repairs - as needed various parks 4 Unforeseen Satety Hazards 5 Turf Mai ntenance/Repurpose 6 Skate Park Repairs Total System -wide Repairs and Maintenance 415,061 41,506 166,024 207,531 31,130 Community 155,648 25,941 103,765 1,297,066 Needs Enhancement 103,765 5,188 Project Description Urgent Improvement Projects Totals Ashphalt Maintenance/Replacement 1 Salas Parking Lot - Replacement 1,245,184 1,245,184 2 Katzakian Parking Lot - Overlay 145,271 145,271 3 Misc. Parking Lot Maintenance (unforeseen/emergency) 25,941 103,765 129,707 259,413 4 Lodi Lake North Side - Slurry Seal 155,648 155,648 5 Lodi Lake Beach Beach Area & Trail - Slurry Seal 103,765 103,765 6 Nature Area Trail - Overlay 259,413 259,413 7 Park Maintenance Corp Yard, Parking & Alley - Overlay 233,472 233,472 8 Hale Parking Lot - Overlay 83,012 83,012 Total Ashphalt Maintenance/Replacement 1,416,396 939,076 129,707 2,485,179 Annual System -wide Repairs and Maintenance 1 Irrigation System Uprgrades and Repairs - Vinewood & Beckman 2 Concrete Sidewalk Safety Hazards 3 Irrigation System Upgrades and Repairs - as needed various parks 4 Unforeseen Satety Hazards 5 Turf Mai ntenance/Repurpose 6 Skate Park Repairs Total System -wide Repairs and Maintenance 415,061 41,506 166,024 207,531 31,130 124,518 155,648 25,941 103,765 1,297,066 20,753 83,012 103,765 5,188 20,753 25,941 415,061 415,061 311,296 1,426,773 207,531 51,883 539,580 498,073 1,789,951 2,827,605 ADA Transition Plan 1 Barrier Removal City Parks (1-3 years) 2 Barrier Removal City Parks (4-6 years) 3 Barrier Removal City Parks (7-9 years) 4 Barrier Removal City Parks (10-12 years) 5 Hutchins Street Square (7-9 years) 6 Barrier Removal Privately Operated Facilities Owned by the City 7 Grape Bowl - North Side Entrance to Bleachers Total ADA Transition Plan 530,241 Community 959,829 959,829 Needs Enhancement 76,786 Project Description Urgent Improvement Projects Totals Demolition of Structures/Amenities 126,594 126,594 1 South Pool at Blakely Park 233,472 233,472 Total Demolition of Structures/Amenities 233,472 - - 233,472 Roofing Projects 1 Lodi Lake North Restooms 88,201 88,201 2 Blakely Pool Building Roof Repair 77,824 77,824 3 Zupo Field Restroom 67,447 67,447 Total Roofing Projects - 233,472 - 233,472 ADA Transition Plan 1 Barrier Removal City Parks (1-3 years) 2 Barrier Removal City Parks (4-6 years) 3 Barrier Removal City Parks (7-9 years) 4 Barrier Removal City Parks (10-12 years) 5 Hutchins Street Square (7-9 years) 6 Barrier Removal Privately Operated Facilities Owned by the City 7 Grape Bowl - North Side Entrance to Bleachers Total ADA Transition Plan 530,241 530,241 959,829 959,829 76,786 76,786 77,824 77,824 378,743 378,743 126,594 126,594 1,297,066 1,297,066 530,241 959,829 1,957,014 3,447,083 Grand Total of Unfunded Projects 4,699,531 7,570,717 9,805,821 22,309,540 * Project costs weren't included in Totals column in draft budget document; corrected here Community Needs Enhancement Project Description Urgent Improvement Projects Totals Planning & Misc 1 125 N. Stockton Building Remodel for Park Division Office 415,061 415,061 2 UPDATE Park System Master Plan (25 years outdated) * 207,531 207,531 3 UPDATE Strategic Operating Plan (expired in 2019) * 51,883 51,883 4 Architechtural Plans and Specs "Old Rec Office" 83,012 83,012 Total Planning & Misc 259,413 - 498,073 757,487 Grand Total of Unfunded Projects 4,699,531 7,570,717 9,805,821 22,309,540 * Project costs weren't included in Totals column in draft budget document; corrected here