HomeMy WebLinkAboutAgenda Report - June 7, 2023 H-01CITY OF
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CALIFORNIA
COUNCIL COMMUNICATION
AGENDA ITEM Howl
AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2023/24 Financial Plan and Budget; Approving
the Fiscal Year 2023/24 Appropriation Spending Limit; Approving the Classifications and
Salary Ranges for Four New Positions; Approving Three New Job Descriptions; and
Approving the FY 2023/24 Investment Policy
MEETING DATE:
PREPARED BY:
June 7, 2023
Deputy City Manager
RECOMMENDED ACTION: Adopt resolution approving Fiscal Year 2023/24 Financial Plan and Budget;
approving the Fiscal Year 2023/24 Appropriation Spending Limit;
approving the classifications and salary ranges for four new positions;
approving three new job descriptions; and approving the FY 2023/24
Investment Policy
BACKGROUND INFORMATION: Staff presented information regarding the FY 2023/24 budget at shirtsleeve
sessions on May 9 and May 16. The draft budget document was made
available to Council on May 12, 2023 and released online May 22, 2023.
The full -proposed budget document is available on the City's webpage at:
http://www.lodi gov/ArchiveCenter/ViewFile/Item/588
The budget document presented to Council this evening for adoption is consistent with the draft released and
presented at the shirtsleeve sessions.
The General Fund for FY 2023/24 is presented with revenues and expenditures of $80,565,740. The remaining
fund expenditures are shown in the table below, bringing the City's total FY 2023/24 budget to $280,205,474.
APPROVED' &AL
ate .Se uerlMay25,202313:391'i)[I
Stephen Schwabauer, City Manager
Utility
$
Citywide Expenses
100,598,340
by Fund
Community Development
$
4,047,980
Wastewater Utility $ 22,650,330
Fleet Services $
2,525,350
Water Utility $ 16,663,339
Vehicle/Equipment Replacement $
2,365,280
Employee Benefits $ 10,870,520
Library $
1848,240
Parks, Recreation and Cultural Srvs $ 9,028,490
Community Grants $
1,822,930
Transit $ 8,188,200
Debt Service $
1,646,000
Self Insurance $ 6,432,850
Special Revenue & Grants $
574,955
Streets $ 6,120,930
Trust &Agency $
76,000
Capital Outlay $ 4,150,000
Transportation Development Act $
30,000
APPROVED' &AL
ate .Se uerlMay25,202313:391'i)[I
Stephen Schwabauer, City Manager
Staffing Changes: The budget proposes 450 full time employees, a net increase of six (6) from FY 2022/23
authorized positions. The recommended changes are shown in the table below:
• Add 0.5 Administrative Assistant in the City Attorney's office; reduce 0.5 Administrative in the City
Manager's office — this more accurately reflects the support the position provides to both offices.
Add (1) Electrical Engineer and eliminate (1) Electric Distribution Operator in Electric Utilitv — the
additional Electric Distribution Operator (Operator) was approved as part of the FY 2022/23 budget,
however there was a need for additional staffing resources in Engineering to keep up with increased
workloads associated with project design including new development, business expansion, solar
installations, and electrification as well as SCADA and GIS integrations. The department received
authorization to underfill the Operator position with an Electrical Engineer and requests to make this
change permanent.
Add (1) Substation Technician Apprentice — this new classification is part of an overall strategy as it
relates to succession planning in the Technical Services Division of Electric Utility. With a number of key
positions retiring within the next 12-24 months, it is critical that the utility maintains sufficient qualified
staff to operate and maintain the utility's most critical assets including electric distribution system
substations. The job description for Substation Technician Apprentice is attached to this report. The
salary scale for the position is as follows:
Position: Step 0 Step 1 Step 21 Step 31 Step 4
Substation Technican Apprentice (IBEW) $104,597.72 $109,827.61 $115,318.991 $121,084.941 $127,139.19
Step 5 Step 6
Substation Technican Apprentice (IBEW), cont. $133,496.15 $140,170.95
Add 1 Animal Services Manacle — this new classification is being requested by the Police Department
to provide managerial oversight at the ground level of the new animal shelter build — to plan for the ability
to house more animals, provide additional services, attract more volunteers, and the possibility to grow
revenue and staffing. The position will oversee current operations and begin planning for operational
updates, policies/procedures, and budget/finance needs. The job description for Animal Services
Manager is currently under review by LCMMA and Human Resources will bring the final job description
to Council for approval at a future meeting. The salary scale for the position is as follows:
Position: I Step 01
Step 11
Step 21
.. Title
Administrative Assistant- (C)
Department
City Attorney !
-0.5
Administrative Assistant- (C)
City Manager
+0.5
Electrical Engineer
Electric Utility - Engineering
+1
Electric Distribution Operator
Electric Utility - Operations
- 1
Substation Technican Apprentice
Electric Utility-SubstationMaintenance
+1
Animal Services Manager
Police -Animal Services
+1
Associate Civil Engineer
Public Works - Engineering
+ 1
Street Maintenance Worker
Public Works - Streets
+ 1
Junior Transportation Planner
PublicWorks- Transit
-1
Transportation Coordinator
PublicWorks- Transit
+1
Wastewater Plant Operator
Public Works - Water Services
+ 1
Water Conservation Specialist
Net increase
Public Works - Water Services
+ 1
+6
• Add 0.5 Administrative Assistant in the City Attorney's office; reduce 0.5 Administrative in the City
Manager's office — this more accurately reflects the support the position provides to both offices.
Add (1) Electrical Engineer and eliminate (1) Electric Distribution Operator in Electric Utilitv — the
additional Electric Distribution Operator (Operator) was approved as part of the FY 2022/23 budget,
however there was a need for additional staffing resources in Engineering to keep up with increased
workloads associated with project design including new development, business expansion, solar
installations, and electrification as well as SCADA and GIS integrations. The department received
authorization to underfill the Operator position with an Electrical Engineer and requests to make this
change permanent.
Add (1) Substation Technician Apprentice — this new classification is part of an overall strategy as it
relates to succession planning in the Technical Services Division of Electric Utility. With a number of key
positions retiring within the next 12-24 months, it is critical that the utility maintains sufficient qualified
staff to operate and maintain the utility's most critical assets including electric distribution system
substations. The job description for Substation Technician Apprentice is attached to this report. The
salary scale for the position is as follows:
Position: Step 0 Step 1 Step 21 Step 31 Step 4
Substation Technican Apprentice (IBEW) $104,597.72 $109,827.61 $115,318.991 $121,084.941 $127,139.19
Step 5 Step 6
Substation Technican Apprentice (IBEW), cont. $133,496.15 $140,170.95
Add 1 Animal Services Manacle — this new classification is being requested by the Police Department
to provide managerial oversight at the ground level of the new animal shelter build — to plan for the ability
to house more animals, provide additional services, attract more volunteers, and the possibility to grow
revenue and staffing. The position will oversee current operations and begin planning for operational
updates, policies/procedures, and budget/finance needs. The job description for Animal Services
Manager is currently under review by LCMMA and Human Resources will bring the final job description
to Council for approval at a future meeting. The salary scale for the position is as follows:
Position: I Step 01
Step 11
Step 21
Step 31
Step 4
Animal Services Manager(LCMMA) 1 $85,170.561
$89,429.231
$93,900.701
$98,595.671
$103,525.44
• Add (1) Associate Civil Engineer — this position is being requested on a five-month basis for succession
planning in the Public Works/Engineering Division due to an upcoming retirement in Development
Services.
• Add 1 Street Maintenance Worker — this Public Works position will add staff to the storm maintenance
crew. The added position will allow the crew to run the storm line cleaning truck with more proactive
frequency and to manage the additional MS4 state -mandated storm trash capture devices, reducing
debris build up in storm lines to increase flow and reduce the chances of street flooding.
Add Transportation Coordinator and eliminate (1) Junior Transportation Planner in Public
Works[Transit — the Transportation Coordinator is a new classification to assist with oversight of transit
services by third -party service providers; serve as a liaison and information source to customers,
community agencies and the public; support management on compliance with federal and state
requirements; and evaluate and recommend modifications to transit services. This position will replace
the vacant Junior Transportation Planner position to provide efficiency and greater breadth of expertise
across the needs of the division. The job description for Transportation Coordinator is attached to this
report. The salary scale for the position is as follows:
Position:
Step 01
Step 11
Step 2 Step 3
Step 4
Transportation Coordinator(AFSCME)
$56,771.091
$59,759.041
$62,904.251 $66,215.001
$69,700.00
• Add (1) Wastewater Plant Operator — this position is being requested for Public Works to meet the
increased demands for operational maintenance of the 20 -year old LIV disinfection system at the White
Slough WPCF, and the consistently increasing regulatory requirements for both the treatment and land
application processes.
• Add 1 Water Conservation 5 ecialist — this new full-time classification will replace one of the part-time
Deputy Water Conservation Officer positions. With continued city growth and new regulations regarding
water conservation and limits on indoor water use, additional outreach, education and water conservation
enforcement are necessary. The job description for the Water Conservation Specialist is attached to this
report. The salary scale for the position is as follows:
Iosition:
Step 0
Step 1
Step 2
Step 3
Step 4
Water Conservation Specialist (AFSCME)
$41,308.80
$43,388.80
$45,552.00
$47,819.20
$50,211.20
Budget and Fiscal Policies - Staff recommends the City Council adopt the Budget and Fiscal Policies contained
within the budget. Policies are unchanged from the prior year with the exception of the Pension Stabilization
Policy. Changes were discussed in detail with City Council at a shirtsleeve held on May 9, 2023. The changes
address the City's rising Pension Stabilization Fund balance at PARS, the occurrence of reserves substantially
above the 16% fund balance target in the General Fund in a given year, and the need to continue focus on
pension funding to address the unfunded accrued liability.
Fiscal Year 2022/23 Actions Requested — There are two items from FY 2022-23 that need addressing prior to
the start of Fiscal Year 2023-24. The budget resolution contains provisions to address the following staff
recommendations.
1.) Staff recommends the City Council allocate $2.8 million in rental revenue received in Fiscal Year 2022-
23 from Department of Water Resources for use of land at Lodi Lake as follows:
Transfer to Parks Capital (Fund 432)
Designate as Restricted Reserve for purpose of
exercising $11.2 million purchase option after 5
$560.000 l
$2,240,000
2.) Staff recommends the City Council designate the $470,000 appropriation from Fiscal Year 2022-23 for
the Hometown Microloan program as a restricted fund balance for the sole purpose of executing the
programs objectives and reauthorize appropriations from that fund balance up to the full amount for Fiscal
Year 2023-24.
FY 2021/22 One Time Funds: City staff has yet to invest in the Pension Stabilization Fund the $7,160,260 in
General Fund fund balance in excess of the 16% reserve requirement accrued at the end of FY 2021/22. The
policy would require staff to make these investments before June 30, 2023. Given the recommended revisions
to the Pension Stabilization Policy, staff is recommending to temporarily suspend the policy until July 19 when
City staff can present an item for Council to allocate these funds.
FY 2023/24 Investment Policy: Staff will bring 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 2023/24.
Strategic Vision Addition: Subsequent to the initial presentations of the budget to City Council, the City Council
adopted a Strategic Vision at its regular meeting on May 17, 2023. City staff distributed to City Council a workplan
based on the Strategic Vision and staff's workplan for the Fiscal Year 2023/24 budget. The workplan shows the
short term (FY 2023/24) efforts the City will undertake to make progress towards the milestones laid out in the
Strategic Vision. The workplan has also been incorporated into the published version of the budget on the City's
website.
FISCAL IMPACT: The 2023/24 budget provides an expenditure plan for all funds. The All -Funds
expenditure budget is projected to be $280,205,474. General Fund revenues and
expenses are projected at $80,565,740.
FUNDING AVAILABLE: N/A
r
Andrew Keys
Deputy City Manager/Internal Services Director
Attachment A —Appropriations Spending Limit
Attachment B — Job Descriptions for Substation Technician Apprentice, Transportation Coordinator, Water Conservation Specialist
Attachment C — Investment Policy
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APPROPRIATIONS SPENDING LIMIT
Last Year's Limit
Adjustment Factors
1 Population % 0.9998
2 Inflation % 1.0444
Total Adjustment %
Annual Adjustment
Adjustments
Total Adjustment
ATTACHMENT A
AMOUNTI
135,198,178 1
1.0442 1
5,974,559
None
5,974,559 1
AMOUNTI
Proceeds of Taxes 62,085,960
Exclusions -
Appropriations subject to limitations 62,085,960
Current Year Limit 141,172,737
ATTACHMENT B
CITY OF LODI APRIL 2023
APPRENTICE SUBSTATION TECHNICIAN
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
Substation Apprentices assist Substation Journeyman with installing, maintaining,
testing, and repairing high voltage electrical substation equipment. Apprentices operate
substation equipment, including the switching of the electrical network and grounding of
de -energized equipment, perform substation apparatus testing such as power factor,
transformer turns ratio, insulation resistance, ductor, battery load, oil sampling, and other
analytical tests under the direction of a Substation Journeyman; perform work in the
installation, testing, maintenance, calibration, repair and modification of electrical and
electronic, communication and protective relay equipment related to the City's receiving
and distribution substations and electronic metering systems.
SUPERVISION RECEIVED AND EXERCISED
Receives immediate supervision from an assigned supervisor; and receives technical and
functional supervision from the Substation/Metering Supervisor and/or Substation
Technicians as assigned.
DISTINGUISHING CHARACTERISTICS
Apprentice Substation Technician is the entry-level class in the Substation Technician
series. Positions in this class typically have little or no directly related work experience
and work under immediate supervision while learning job tasks. The Apprentice
Substation Technician class is distinguished from the Substation Technician by the
performance of less than the full range of duties assigned to the Substation Technician.
After successfully completing the substation electrician apprentice program, incumbents
will move into the journey -level Substation Technician position.
EXAMPLES OF DUTIES
Duties may include, but are not limited to the following:
Under the leadership of a journey -level Substation Technician, progressively learns the
necessary skills of a Journey level substation technician through classroom and on-the-
job training;
Incumbents attend and successfully pass a qualified substation electrician apprentice
program; work under immediate supervision and guidance of journey -level Substation
Technicians or other authorized persons;
Learns and installs wiring systems and control panels as well as performs routine
maintenance and emergency repairs on electrical substations;
Learns and performs testing, troubleshooting, repair, and installation of protective relaying
and control systems associated with the City's generating, transmission and distribution
systems while learning job tasks, progressing to general supervision as procedures and
processes of assigned area of responsibility are learned;
Utilizes various meters, testing, and diagnostic devices to perform routine testing and
troubleshoots equipment problems;
Learns to install, troubleshoot, maintain and repair fiber optic systems and associated
equipment;
Learns to troubleshoot, repair, maintain and calibrate computer-based SCADA system,
transducers, input devices, communication equipment and data transmission equipment;
Learns and performs periodic inspections of substation equipment and facilities and
maintains appropriate records, including building, site and yard maintenance and
housekeeping; maintains substation properties in good working order and clean condition;
Learns to test, calibrate, maintain and repair indicating and recording instruments and
measuring devices; test, calibrate, maintain and repair distribution system line equipment
such as transformers, capacitors, regulators, reclosers and associated control equipment;
test prior to energization and perform fault locating of high-voltage underground cable
systems;
Installs distribution substation equipment such as transformers, circuit breakers,
disconnects, buswork, etc.;
Assists Substation Technicians in the installation, maintenance, and wiring of electric
substations;
Maintains a safety conscious work environment by following safety protocols and safe
work practices;
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:
Types of tools, methods and materials used in electrical work;
Components, parts and basic safety used in substations;
Working knowledge of math including algebra and basic trigonometry;
Fiber optic principles and practices;
Computers and software programs (e.g., Microsoft software packages) to conduct,
compile, and/or generate documentation;
Safe work practices.
Ability to:
Acquire and apply a working knowledge of mechanical and electrical principles;
Perform maintenance, troubleshoot and repair work on substations and related
equipment;
Know and understand operations, and observe safety rules; follow oral and written
directions; intermittently analyze problem equipment; identify and locate equipment;
interpret work orders; operate assigned equipment; remember equipment location; and
explain jobs to others;
Maintain and repair SCADA system. Install and maintain City of Lodi communication
systems as it relates to substations;
Use and care for tools and equipment used in maintaining and repairing electrical and
electronic devices. Work safely under emergency, hazardous conditions and high voltage
environments;
Maintain accurate records. Communicate clearly and concisely, both orally and in writing;
assimilate and understand information;
Respond to after-hours emergency work at any time. Operate equipment in a safe and
efficient manner in a variety of hazardous environments including toxic liquids, gases,
and high voltages;
Build and maintain positive working relationships with co-workers, other City employees
and the public using principles of good customer service;
Make sound decisions in a manner consistent with the essential job functions;
Attend and maintain passing grades at Apprentice Substation Electrician Technician
training classes and/or courses at remote locations as assigned.
Experience and Education
Experience:
One year of experience in the maintenance, repair and testing of high voltage electrical
equipment in an industrial environment is preferred.
Possession of journey level Electrician, Lineman, or Metering Technician status is
preferred but not required.
Education:
Equivalent to a high school diploma or equivalent, college level courses in electrical
theory preferred.
License or Certificate
Possession of a valid Class C Driver's License issued from the California Department of
Motor Vehicles.
Possession of First Aid and cardiopulmonary resuscitation (CPR) certificates within
twelve (12) months of date of appointment.
WORKING CONDITIONS:
Environmental Conditions: Works indoors in an office environment and outdoors in varied
weather conditions including cold, hot, rain and high winds. The work environment will
occasionally include high noise levels and/or exposure to hazardous substances (i.e.,
solvents, PCB's chemicals, etc.) that could, if precautions are not followed, pose a health
risk. Approved respiratory and safety equipment shall be worn when hazardous
substances are being handled. Work near energized power lines and equipment.
Physical Conditions: Essential and marginal functions may require maintaining physical
condition necessary for walking sitting, standing, bending, stooping, kneeling, twisting
when installing, repairing and servicing equipment; perform simple and power grasping,
pushing, pulling, and fine manipulation; lifting and carrying up to 40lbs and 70lbs
occasionally; climbing into and down from vehicles; work in locations inaccessible to
mobile equipment and in confined spaces such as underground vaults. Must possess
mobility to work in a standard office setting and use standard office equipment, including
a computer, and to operate a motor vehicle to visit various City and meeting sites; vision
to read printed materials and a computer screen; and hearing and speech to
communicate in person and over the telephone.
Emergencies, critical system conditions, or outage limitations may require that work be
done at night and/or under time restraints. System priorities may require extended periods
of overtime including working weekends.
FLSA (Non -Exempt)
CITY OF LODI
TRANSPORTATION COORDINATOR
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.
nFFINITInN
Under general supervision, coordinates the day-to-day operations and activities of the
City's transportation system; assists with oversight of transit services by third -party
service providers including transit operations contractors; assists with a wide variety of
administrative, technical and analytical tasks in support of the City's transit system; and
performs related duties, as assigned.
SUPERVISION EXERCISED AND RECEIVED
Receives general direction from assigned supervisory or management staff. May provide
technical oversight to other staff.
DISTINGUISHING CHARACTERISTICS
This is a technical classification performing a wide variety of programmatic coordination
duties for the City's transportation program. Incumbents serve to relieve the manager of
performing administrative detail work and are expected to function with very little direct
oversight.
EXAMPLES OF DUTIES
Duties may include, but are not limited to the following:
Serves as liaison to customers, community agencies, and the general public regarding
City of Lodi transportation services;
Supports management in ensuring compliance with federal and state requirements;
evaluates and recommends modifications to transit services;
Participates in the development and implementation of goals, objectives, policies, and
priorities for transit services and programs; identifies resource needs; recommends and
implements policies and procedures, including standard operating procedures for
assigned programs and facilities;
Plans, coordinates, reviews, and assesses the effectiveness of various transit programs,
activities, and systems; recommends improvements or modifications;
Assists with coordination of day-to-day operations of transit programs and services;
monitors and reviews the work of third -party transit service providers to ensure that
CITY OF LODI Page 2 of 5
Transportation Coordinator
service levels are consistent with contract provisions; takes remedial action or elevates
problems to supervisor when necessary;
Creates and maintains a variety of narrative and statistical reports, files, records, and
other documentation required for Federal Transit Administration (FTA) Triennial audits
and other regulatory requirements;
Assists management in all aspects of transit operations and works to ensure service
quality, providing analysis of operations data and other assistance;
Monitors and oversees the daily service of transit operations in compliance with City
policy and standard operating procedures;
Reviews all logs and paperwork from dispatch and maintenance; ensures that
maintenance schedules and services comply with contract provisions and other
requirements; reviews logs for service anomalies and follows up with contract service
providers as needed;
Develops, communicates and monitors standards for service delivery functions of
contractor; conducts monthly and annual performance reviews and identifies and
recommends contract modifications as needed;
Confers with appropriate staff and other agency departments as necessary to
troubleshoot, resolve, and assure a satisfactory response to paratransit ADA customer
concerns;
Provides administrative support for the Americans with Disabilities Act Certification
program through Access San Joaquin. Ensures eligibility/appeal process is followed
properly (scheduling, creation and maintenance of files; ensuring all steps are completed
in a timely manner);
Conducts regular contract compliance quality checks, ensures vehicle inspections are
performed properly, reviews preventive maintenance audits, and prepares written reports;
Ensures fixed route and paratransit service delivery standards meet state and federal
guidelines;
Represents the City of Lodi at regional meetings as needed to provide transit information
and feedback regarding transit needs and issues; assists with the preparation of reports
and updates for commission meetings, verifies legal notices have been posted or
published, and completes the necessary arrangements to ensure an effective meeting;
Assists in the preparation of transit procurements, including Requests for Proposals,
developing Scopes of work, and identifying deliverables;
Assists in the coordination of various transportation management programs as directed;
CITY OF LODI Page 3 of 5
Transportation Coordinator
Assists in the preparation of transportation division grants and related reports;
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:
Transit system program operations and best practices; resources available, operational
elements, program evaluation and performance measurements;
Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures
relevant to the assigned area of responsibility;
Current mass transit systems practices and technology;
Methods and techniques of developing, coordinating and implementing public
involvement and outreach processes on complex and/or politically sensitive transit issues;
Principles and practices for contract management and administration;
Customer service and public relations principles and practices;
Basic mathematics and account record keeping;
Techniques for providing a high level of customer service by effectively dealing with the
public, vendors, contractors, and City staff;
The structure and content of the English language, including the meaning and spelling of
words, rules of composition, and grammar;
Modern equipment and communication tools used for business functions and program,
project, and task coordination;
Computers and software programs (e.g., Microsoft software packages) to conduct,
compile, and/or generate documentation.
Ability to:
Plan, organize and direct contracted transit operations;
Analyze operating conditions and problems and recommend and implement appropriate
solutions;
Prepare clear and concise administrative and financial reports;
CITY OF LODI Page 4 of 5
Transportation Coordinator
Develop, read, and interpret rules, policies and procedures;
Research complaints, problems and prepare responses for management, including
composing correspondence;
Understand, interpret, and apply all pertinent laws, codes, regulations, policies and
procedures, and standards relevant to work performed;
Effectively represent the department and the City in meetings with individuals;
governmental agencies; community groups; various business, professional, and
regulatory organizations;
Understand the organization and operation of the City and of outside agencies as
necessary to assume assigned responsibilities;
Independently organize work, set priorities, meet critical deadlines, and follow-up on
assignments; Make decisions, exercise good judgement, set priorities and meet
deadlines;
Effectively use computer systems, software applications, and modern business
equipment to perform a variety of work tasks;
Communicate clearly and concisely, both orally and in writing, using appropriate English
grammar and syntax; communicates with tact and diplomacy;
Use tact, initiative, prudence, and independent judgment within general policy,
procedural, and legal guidelines;
Establish, maintain, and foster positive and effective working relationships with those
contacted in the course of work.
EDUCATION AND EXPERIENCE
Any combination of training and experience that would provide the required knowledge,
skills, and abilities is qualifying. A typical way to obtain the required qualifications would
be:
Education:
Equivalent to an associate degree in public or business administration, recreation,
community services, or a related field.
Experience:
Two (2) years of increasingly responsible administrative experience in a public
transportation or similar program.
CITY OF LODI Page 5 of 5
Transportation Coordinator
LICENSES AND CERTIFICATES
Possession of, or the ability to obtain, a valid Class C California driver's license upon
appointment.
WORKING CONDITIONS:
Environmental Conditions: Employees typically work in an office environment with
moderate noise levels, and controlled temperature conditions. Some field work with
minimal exposure to extreme temperatures and dust, gas, odors from vehicles and traffic.
Employees may interact with upset staff and/or public and private representatives in
interpreting and enforcing division policies and procedures.
Physical Conditions: Must possess mobility to work in a standard office setting and use
standard office equipment, including a computer, and to operate a motor vehicle to visit
various City and meeting sites; vision to read printed materials and a computer screen;
and hearing and speech to communicate in person and over the telephone. Standing in
and walking between work areas is frequently required. Finger dexterity is needed to
access, enter, and retrieve data using a computer keyboard or calculator and to operate
standard office equipment. Positions in this classification frequently bend, stoop, kneel,
and reach to perform assigned duties, as well as push and pull drawers open and closed
to retrieve and file information. Employees must possess the ability to lift, carry, push,
and pull materials and occasionally lifting objects up to 25 pounds.
*FLSA Status: NON-EXEMPT
CITY OF LODI
WATER CONSERVATION SPECIALIST
JULY 2023
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, performs a variety of specialized program and clerical duties
in support of the City's water conservation program.
SUPERVISION RECEIVED AND EXERCISED
This position receives general direction from the Compliance Manager. May provide
lead direction to part-time employees or volunteers.
EXAMPLE OF DUTIES
Duties include, but are not limited to, the following:
Promotes water conservation and monitors water consumption; conducts public
outreach regarding water conservation to include development of outreach materials,
participation in outreach events, and public speaking;
Provides information and answers questions regarding the Water Conservation
Program to members of the public by phone and in-person;
Responds to citizen complaints regarding water -wasting violations; provides information
on code regulations; investigates and resolves problems;
Conducts field inspections and investigations to assure compliance with the City's water
conservation ordinance and to identify violations pertaining to water wasting; performs
water audits for residents as needed; in-person contact with responsible resident or
property owner or business; issues citations; performs follow-up field review to verify
that remedial action has been taken;
Processes and tracks Water Conservation Rebates;
Researches, prepares, and manages records and documentation, performs filing and
general clerical duties; maintains accurate records or response, description, and
resolution of wasteful water complaints;
Compiles information and prepares correspondence on a variety of water conservation
matters; attends meetings as required;
CITY OF LODI
Water Conservation Specialist
Monitors and implements water conservation awareness program, and other related
programs in classroom settings or to other organizations or groups, as requested;
Provides exceptional customer service to those contacted in the course of work;
Develops and maintains on-going community contacts with local businesses and
community groups; serves as community resource for water related issues;
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:
Laws, regulations and procedures related to wasting water enforcement;
Investigation principles and practices;
Basic knowledge of water conservation programs;
Safety principles, practices, and procedures;
Computer programs and software including word processing, spreadsheets, and
database applications;
City streets and boundaries.
Ability to:
Work independently, set goals and meet established deadlines;
Learn and explain appropriate City water conservation and enforcement codes and
ordinances;
Communicate clearly and concisely, both orally and in writing, read, interpret and follow
written instructions;
Provide exceptional customer service to those contacted in the course of work;
Ability to use computers and other office equipment;
Respond to citizen complaints regarding water conservation violations with tact and
diplomacy; investigate and resolve problems, provide water conservation information to
public by phone and in person regarding code regulations;
CITY OF LODI
Water Conservation Specialist
Maintain accurate records or response, description, and resolution of wasteful water
complaints.
Ability to sit and stand for extended periods.
EDUCATION AND EXPERIENCE
Must possess a high school diploma or its equivalent.
Enforcement experience involving a high degree of public contact, investigative skills, or
any combination thereof.
LICENSES
A valid California Class C Driver's License required at the time of appointment.
WORKING CONDITIONS
Office environment and field work, including extreme fluctuations in temperature, noise,
dust and all types of weather and temperature conditions.
Physical Conditions:
Essential and Marginal functions require maintaining physical conditions necessary to
see well enough to read, write and make observations, operate hand tools, vehicles and
equipment; hear well enough to converse on the telephone and in person; bodily
mobility to walk for extended periods of time including slippery or uneven surfaces;
bend, kneel, reach, stand, crouch or climb occasionally; operate assigned equipment
and vehicles; operate office equipment requiring repetitive hand movement and fine
coordination including use of a computer keyboard; verbally communicate to exchange
information; and be able to lift up to fifteen pounds as necessary.
ATTACHMENT C
CITY OF LODI
INVESTMENT POLICY
Fiscal Year 2023/24
Resolution 2023 -
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.
Iii HVAIkik94N►/_1 Weis] ►kIZT61I
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.
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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 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.
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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.
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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
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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 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.
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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
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2.5 BROKER/DEALER CERTIFICATION
CERTIFICATION ATTACH EDCERTIFICATION
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 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
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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
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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.
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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.
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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.
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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.
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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
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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.
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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
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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.
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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.
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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
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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
RESOLUTION NO. 2023-125
A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING THE
CITY OF LODI FINANCIAL PLAN AND BUDGET FOR THE
FISCAL YEAR BEGINNING JULY 1, 2023 AND ENDING
JUNE 30,2024; APPROVING THE 2023/24 APPROPRIATIONS
SPENDING LIMIT; APPROVING THE CLASSIFICATIONS AND
SALARY RANGES FOR FOUR NEW POSITIONS;
APPROVING THREE NEW JOB DESCRIPTIONS; AND
APPROVING THE FISCAL YEAR 2023/24 INVESTMENT POLICY
WHEREAS, the City Manager submitted the 2023/24 Financial Plan and Budget to the
City Council on May 12, 2023; and
WHEREAS, the 2023/24 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 9 and 16,
2023; and
WHEREAS, the City Council is required to adopt the Appropriations Spending Limit for
2023/24; 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 as part of a
continuous review and best practices for management of the City of Lodi pooled cash
investments.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lodi as follows:
1. That the 2023/24 Financial Plan and Budget, as proposed by the City Manager be
approved as follows:
General Fund
FY 2023/24 Budget
Police Department
$30,976,320
Fire Department
$18,159,110
Internal Services Department
$7,890,950
Non -Departmental
$7,054,000
Parks, Rec & Cultural Services
$6,759,900
Public Works
$4,105,730
Library
$1,877,990
City Attorney
$1,152,110
City Manager
$833,910
City Clerk
$676,420
Economic Development
$587,530
Community Improvement
$491,770
Total General Fund
$80,565,740
Other Funds
I FY 2023/24 Budget
Electric Utility_$100,598,340
Administrative Assistant - (C)
Wastewater Utility
$22,650,330
Water Utility
$16,663,340
Em to ee Benefits
$10,870,520
Parks, Recreation and Cultural Srvs
$9,028,490
Transit
$8,188,200
Self Insurance
$6,432,850
Streets
$6,120,960
Capital Outlay
$4,150,000
Community Development
$4,047,950
Fleet Services
$2,525,350
Vehicle/Equipment Replacement
$2,365,280
Library
$1,848,240
Community Grants
$1,822,930
Debt Service
$1,646,000
Special Revenue & Grants
$574,955
Trust & Agency
$76,000
Transportation Development Act
$30,000
Total General Fund
$199,639,735
2. That the funds for the 2023/24 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 $5,974,559 from the 2022/23
level of $135,198,178 to the 2023/24 level of $141,172,737 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, 2023; and
Job Title
Department
+/-
Administrative Assistant - (C)
City Attorney
-0.5
Administrative Assistant - (C)
City Manager
+0.5
Electrical Engineer
Electric Utility - Engineering
+1
Electric Distribution Operator
Electric Utility - Operations
- 1
Substation Technican Apprentice
Electric Utility -Substation Maintenance
+ 1
Animal Services Manager
Police - Animal Services
+1
Associate Civil Engineer
Public Works - Engineering
+1
Street Maintenance Worker
PublicWorks- Streets
+1
Junior Transportation Planner
PublicWorks- Transit
-1
Transportation Coordinator
Public Works - Transit
+1
Wastewater Plant Operator
Public Works - Water Services
+ 1
Water Conservation Specialist
I PublicWorks- WaterServices
+1
Total
+6
5. That the City Council approves the salary ranges as indicated below and approves the
job descriptions as written for Substation Technician Apprentice, Transportation
Coordinator, and Water Conservation Specialist on Attachment B; and
Position: Step 0 Step 1
Step 21 Step 3 Ste 4
Substation Technican Apprentice (IBEW) $104,597.72 $109,827.61
$115,318.99 $121,084.94 $127,139.19
Step 5 Step 6
Step 4
Substation Technican Apprentice (IBEW), cont. $133,496.15 $140,170.95
Position:
Step 01
Step 1
Step 21
Step 31
Step 4
Transportation Coordinator (AFSCME)
$56,771.09
$59,759.04
$62,904.25
$66,215.001
$69,700.OC
Water Conservation Specialist (AFSCME)
$41,308.801
$43,388.80
$45,552.001
$47,819.201
$50,211.2C
6. That the City Council approves the salary range as indicated below for Animal Services
Manager; and
Position: I Step 01 Step 11 Step 21 Ste 3 Step 4
Animal Services Manager (LCMMA) 1 $85,170.561 $89,429.231 $93,900.701 $98,595.671 $103,525.44
7. That the City Council approves the FY 2023/24 Investment Policy as provided in
Attachment C; and
8. That the City Council approves the City's five-year Capital Improvement Project
Program as follows:
City of Lodi 5 -Year Capital Improvement Program
FY 23/241
FY 24/25 FY 25/26 FY 26/27 FY 27/28
23,416,2001
30,767,7001 16,160,2001 15,595,2001 13,185, 200
9. That the City Council allocate $2.8 million in rental revenue received in Fiscal Year
2022-23 from Department of Water Resources for use of land at Lodi Lake as follows:
Transfer to Parks Capital Fund 432 $560,000
Designate as Restricted Reserve for purpose of exercising $2,240,000
$11.2 million purchase option after 5 years
10. That the City Council designate the $470,000 appropriation from Fiscal Year 2022-23
for the Hometown Microloan program as a restricted fund balance for the sole purpose
of executing the programs objectives and reauthorize appropriations from that fund
balance up to the full amount for Fiscal Year 2023-24; and
11. That the City Council directs the Director of Finance to not consider the $7,160,260 of
General Fund fund balance in excess of 16% at the close of Fiscal Year 2021-22 (one-
time funds) when calculating fund balance for Fiscal Year 2022-23 or for the Fiscal
Year 2023-24 budget; and
12. That the City Council directs the City Manager to bring back an item in July 2023 to
consider allocation of the one-time funds and temporarily suspends the Pension
Stabilization Policy for these funds only until such an item is considered and approved
by Council; and
13. That the City Council hereby adopts the Budget and Fiscal Policies contained within
the Fiscal Year 2023-24 Budget, including revisions to the Pension Stabilization Policy.
Dated: June 7, 2023
------------------------------------------------------------------------
------------------------------------------------------------------------
I hereby certify that Resolution No. 2023-125 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held June 7, 2023 by the following vote:
AYES. COUNCIL MEMBERS — Bregman, Craig, Nakanishi, Yepez, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
OLIVIA NASHED
City Clerk
2023-125
ATTACHMENT A
2023-24 FINANCIAL PLAN AND BUDGET
APPROPRIATIONS SPENDING LIMIT
ATTACHMENT B
CITY OF LODI APRIL 2023
APPRENTICE SUBSTATION TECHNICIAN
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
Substation Apprentices assist Substation Journeyman with installing, maintaining,
testing, and repairing high voltage electrical substation equipment. Apprentices operate
substation equipment, including the switching of the electrical network and grounding of
de -energized equipment, perform substation apparatus testing such as power factor,
transformer turns ratio, insulation resistance, ductor, battery load, oil sampling, and other
analytical tests under the direction of a Substation Journeyman; perform work in the
installation, testing, maintenance, calibration, repair and modification of electrical and
electronic, communication and protective relay equipment related to the City's receiving
and distribution substations and electronic metering systems.
SUPERVISION RECEIVED AND EXERCISED
Receives immediate supervision from an assigned supervisor; and receives technical and
functional supervision from the Substation/Metering Supervisor and/or Substation
Technicians as assigned.
DISTINGUISHING CHARACTERISTICS
Apprentice Substation Technician is the entry-level class in the Substation Technician
series. Positions in this class typically have little or no directly related work experience
and work under immediate supervision while learning job tasks. The Apprentice
Substation Technician class is distinguished from the Substation Technician by the
performance of less than the full range of duties assigned to the Substation Technician.
After successfully completing the substation electrician apprentice program, incumbents
will move into the journey -level Substation Technician position.
EXAMPLES OF DUTIES
Duties may include, but are not limited to the following.
Under the leadership of a journey -level Substation Technician, progressively learns the
necessary skills of a Journey level substation technician through classroom and on-the-
job training;
Incumbents attend and successfully pass a qualified substation electrician apprentice
program; work under immediate supervision and guidance of journey -level Substation
Technicians or other authorized persons;
Learns and installs wiring systems and control panels as well as performs routine
maintenance and emergency repairs on electrical substations;
Learns and performs testing, troubleshooting, repair, and installation of protective relaying
and control systems associated with the City's generating, transmission and distribution
systems while learning job tasks, progressing to general supervision as procedures and
processes of assigned area of responsibility are learned;
Utilizes various meters, testing, and diagnostic devices to perform routine testing and
troubleshoots equipment problems;
Learns to install, troubleshoot, maintain and repair fiber optic systems and associated
equipment;
Learns to troubleshoot, repair, maintain and calibrate computer-based SCADA system,
transducers, input devices, communication equipment and data transmission equipment;
Learns and performs periodic inspections of substation equipment and facilities and
maintains appropriate records, including building, site and yard maintenance and
housekeeping; maintains substation properties in good working order and clean condition;
Learns to test, calibrate, maintain and repair indicating and recording instruments and
measuring devices; test, calibrate, maintain and repair distribution system line equipment
such as transformers, capacitors, regulators, reclosers and associated control equipment;
test prior to energization and perform fault locating of high-voltage underground cable
systems;
Installs distribution substation equipment such as transformers, circuit breakers,
disconnects, buswork, etc.;
Assists Substation Technicians in the installation, maintenance, and wiring of electric
substations;
Maintains a safety conscious work environment by following safety protocols and safe
work practices;
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:
Types of tools, methods and materials used in electrical work;
Components, parts and basic safety used in substations;
Working knowledge of math including algebra and basic trigonometry;
Fiber optic principles and practices;
Computers and software programs (e.g., Microsoft software packages) to conduct,
compile, and/or generate documentation;
Safe work practices.
Ability to:
Acquire and apply a working knowledge of mechanical and electrical principles;
Perform maintenance, troubleshoot and repair work on substations and related
equipment;
Know and understand operations, and observe safety rules; follow oral and written
directions; intermittently analyze problem equipment; identify and locate equipment;
interpret work orders; operate assigned equipment; remember equipment location; and
explain jobs to others;
Maintain and repair SCADA system. Install and maintain City of Lodi communication
systems as it relates to substations;
Use and care for tools and equipment used in maintaining and repairing electrical and
electronic devices. Work safely under emergency, hazardous conditions and high voltage
environments;
Maintain accurate records. Communicate clearly and concisely, both orally and in writing;
assimilate and understand information;
Respond to after-hours emergency work at any time. Operate equipment in a safe and
efficient manner in a variety of hazardous environments including toxic liquids, gases,
and high voltages;
Build and maintain positive working relationships with co-workers, other City employees
and the public using principles of good customer service;
Make sound decisions in a manner consistent with the essential job functions;
Attend and maintain passing grades at Apprentice Substation Electrician Technician
training classes and/or courses at remote locations as assigned.
Experience and Education
Experience:
One year of experience in the maintenance, repair and testing of high voltage electrical
equipment in an industrial environment is preferred.
Possession of journey level Electrician, Lineman, or Metering Technician status is
preferred but not required.
Education:
Equivalent to a high school diploma or equivalent, college level courses in electrical
theory preferred.
License or Certificate
Possession of a valid Class C Driver's License issued from the California Department of
Motor Vehicles.
Possession of First Aid and cardiopulmonary resuscitation (CPR) certificates within
twelve (12) months of date of appointment.
WORKING CONDITIONS:
Environmental Conditions: Works indoors in an office environment and outdoors in varied
weather conditions including cold, hot, rain and high winds. The work environment will
occasionally include high noise levels and/or exposure to hazardous substances (i.e.,
solvents, PCB's chemicals, etc.) that could, if precautions are not followed, pose a health
risk. Approved respiratory and safety equipment shall be worn when hazardous
substances are being handled. Work near energized power lines and equipment.
Physical Conditions: Essential and marginal functions may require maintaining physical
condition necessary for walking sitting, standing, bending, stooping, kneeling, twisting
when installing, repairing and servicing equipment; perform simple and power grasping,
pushing, pulling, and fine manipulation; lifting and carrying up to 40lbs and 70lbs
occasionally; climbing into and down from vehicles; work in locations inaccessible to
mobile equipment and in confined spaces such as underground vaults. Must possess
mobility to work in a standard office setting and use standard office equipment, including
a computer, and to operate a motor vehicle to visit various City and meeting sites; vision
to read printed materials and a computer screen; and hearing and speech to
communicate in person and over the telephone.
Emergencies, critical system conditions, or outage limitations may require that work be
done at night and/or under time restraints. System priorities may require extended periods
of overtime including working weekends.
FLSA (Non -Exempt)
CITY OF LODI
TRANSPORTATION COORDINATOR
APRIL 2023
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, coordinates the day-to-day operations and activities of the
City's transportation system; assists with oversight of transit services by third -party
service providers including transit operations contractors; assists with a wide variety of
administrative, technical and analytical tasks in support of the City's transit system; and
performs related duties, as assigned.
SUPERVISION EXERCISED AND RECEIVED
Receives general direction from assigned supervisory or management staff. May provide
technical oversight to other staff.
DISTINGUISHING CHARACTERISTICS
This is a technical classification performing a wide variety of programmatic coordination
duties for the City's transportation program. Incumbents serve to relieve the manager of
performing administrative detail work and are expected to function with very little direct
oversight.
EXAMPLES OF DUTIES
Duties may include, but are not limited to the following
Serves as liaison to customers, community agencies, and the general public regarding
City of Lodi transportation services;
Supports management in ensuring compliance with federal and state requirements;
evaluates and recommends modifications to transit services;
Participates in the development and implementation of goals, objectives, policies, and
priorities for transit services and programs; identifies resource needs; recommends and
implements policies and procedures, including standard operating procedures for
assigned programs and facilities;
Plans, coordinates, reviews, and assesses the effectiveness of various transit programs,
activities, and systems; recommends improvements or modifications;
Assists with coordination of day-to-day operations of transit programs and services;
monitors and reviews the work of third -party transit service providers to ensure that
CITY OF LODI Page 2 of 5
Transportation Coordinator
service levels are consistent with contract provisions; takes remedial action or elevates
problems to supervisor when necessary;
Creates and maintains a variety of narrative and statistical reports, files, records, and
other documentation required for Federal Transit Administration (FTA) Triennial audits
and other regulatory requirements;
Assists management in all aspects of transit operations and works to ensure service
quality, providing analysis of operations data and other assistance;
Monitors and oversees the daily service of transit operations in compliance with City
policy and standard operating procedures;
Reviews all logs and paperwork from dispatch and maintenance; ensures that
maintenance schedules and services comply with contract provisions and other
requirements; reviews logs for service anomalies and follows up with contract service
providers as needed;
Develops, communicates and monitors standards for service delivery functions of
contractor; conducts monthly and annual performance reviews and identifies and
recommends contract modifications as needed;
Confers with appropriate staff and other agency departments as necessary to
troubleshoot, resolve, and assure a satisfactory response to paratransit ADA customer
concerns;
Provides administrative support for the Americans with Disabilities Act Certification
program through Access San Joaquin. Ensures eligibility/appeal process is followed
properly (scheduling, creation and maintenance of files; ensuring all steps are completed
in a timely manner);
Conducts regular contract compliance quality checks, ensures vehicle inspections are
performed properly, reviews preventive maintenance audits, and prepares written reports;
Ensures fixed route and paratransit service delivery standards meet state and federal
guidelines;
Represents the City of Lodi at regional meetings as needed to provide transit information
and feedback regarding transit needs and issues; assists with the preparation of reports
and updates for commission meetings, verifies legal notices have been posted or
published, and completes the necessary arrangements to ensure an effective meeting;
Assists in the preparation of transit procurements, including Requests for Proposals,
developing Scopes of work, and identifying deliverables;
Assists in the coordination of various transportation management programs as directed
CITY OF LODI Page 3 of 5
Transportation Coordinator
Assists in the preparation of transportation division grants and related reports;
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:
Transit system program operations and best practices; resources available, operational
elements, program evaluation and performance measurements;
Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures
relevant to the assigned area of responsibility;
Current mass transit systems practices and technology;
Methods and techniques of developing, coordinating and implementing public
involvement and outreach processes on complex and/or politically sensitive transit issues;
Principles and practices for contract management and administration;
Customer service and public relations principles and practices;
Basic mathematics and account record keeping;
Techniques for providing a high level of customer service by effectively dealing with the
public, vendors, contractors, and City staff;
The structure and content of the English language, including the meaning and spelling of
words, rules of composition, and grammar;
Modern equipment and communication tools used for business functions and program,
project, and task coordination;
Computers and software programs (e.g., Microsoft software packages) to conduct,
compile, and/or generate documentation.
Ability to:
Plan, organize and direct contracted transit operations;
Analyze operating conditions and problems and recommend and implement appropriate
solutions;
Prepare clear and concise administrative and financial reports;
CITY OF LODI Page 4 of 5
Transportation Coordinator
Develop, read, and interpret rules, policies and procedures;
Research complaints, problems and prepare responses for management, including
composing correspondence;
Understand, interpret, and apply all pertinent laws, codes, regulations, policies and
procedures, and standards relevant to work performed;
Effectively represent the department and the City in meetings with individuals;
governmental agencies; community groups; various business, professional, and
regulatory organizations;
Understand the organization and operation of the City and of outside agencies as
necessary to assume assigned responsibilities;
Independently organize work, set priorities, meet critical deadlines, and follow-up on
assignments; Make decisions, exercise good judgement, set priorities and meet
deadlines;
Effectively use computer systems, software applications, and modern business
equipment to perform a variety of work tasks;
Communicate clearly and concisely, both orally and in writing, using appropriate English
grammar and syntax; communicates with tact and diplomacy;
Use tact, initiative, prudence, and independent judgment within general policy,
procedural, and legal guidelines;
Establish, maintain, and foster positive and effective working relationships with those
contacted in the course of work.
EDUCATION AND EXPERIENCE
Any combination of training and experience that would provide the required knowledge,
skills, and abilities is qualifying. A typical way to obtain the required qualifications would
be:
Education:
Equivalent to an associate degree in public or business administration, recreation,
community services, or a related field.
Experience:
Two (2) years of increasingly responsible administrative experience in a public
transportation or similar program.
CITY OF LODI Page 5 of 5
Transportation Coordinator
LICENSES AND CERTIFICATES
Possession of, or the ability to obtain, a valid Class C California driver's license upon
appointment.
WORKING CONDITIONS:
Environmental Conditions: Employees typically work in an office environment with
moderate noise levels, and controlled temperature conditions. Some field work with
minimal exposure to extreme temperatures and dust, gas, odors from vehicles and traffic.
Employees may interact with upset staff and/or public and private representatives in
interpreting and enforcing division policies and procedures.
Physical Conditions: Must possess mobility to work in a standard office setting and use
standard office equipment, including a computer, and to operate a motor vehicle to visit
various City and meeting sites; vision to read printed materials and a computer screen;
and hearing and speech to communicate in person and over the telephone. Standing in
and walking between work areas is frequently required. Finger dexterity is needed to
access, enter, and retrieve data using a computer keyboard or calculator and to operate
standard office equipment. Positions in this classification frequently bend, stoop, kneel,
and reach to perform assigned duties, as well as push and pull drawers open and closed
to retrieve and file information. Employees must possess the ability to lift, carry, push,
and pull materials and occasionally lifting objects up to 25 pounds.
*FLSA Status: NON-EXEMPT
CITY OF LODI
WATER CONSERVATION SPECIALIST
JULY 2023
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, performs a variety of specialized program and clerical duties
in support of the City's water conservation program.
SUPERVISION RECEIVED AND EXERCISED
This position receives general direction from the Compliance Manager. May provide
lead direction to part-time employees or volunteers.
EXAMPLE OF DUTIES
Duties include, but are not limited to, the following:
Promotes water conservation and monitors water consumption; conducts public
outreach regarding water conservation to include development of outreach materials,
participation in outreach events, and public speaking;
Provides information and answers questions regarding the Water Conservation
Program to members of the public by phone and in-person;
Responds to citizen complaints regarding water -wasting violations; provides information
on code regulations; investigates and resolves problems;
Conducts field inspections and investigations to assure compliance with the City's water
conservation ordinance and to identify violations pertaining to water wasting; performs
water audits for residents as needed; in-person contact with responsible resident or
property owner or business; issues citations; performs follow-up field review to verify
that remedial action has been taken;
Processes and tracks Water Conservation Rebates;
Researches, prepares, and manages records and documentation, performs filing and
general clerical duties; maintains accurate records or response, description, and
resolution of wasteful water complaints;
Compiles information and prepares correspondence on a variety of water conservation
matters; attends meetings as required;
CITY OF LODI
Water Conservation Specialist
Monitors and implements water conservation awareness program, and other related
programs in classroom settings or to other organizations or groups, as requested;
Provides exceptional customer service to those contacted in the course of work;
Develops and maintains on-going community contacts with local businesses and
community groups; serves as community resource for water related issues;
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:
Laws, regulations and procedures related to wasting water enforcement,
Investigation principles and practices;
Basic knowledge of water conservation programs;
Safety principles, practices, and procedures;
Computer programs and software including word processing, spreadsheets, and
database applications;
City streets and boundaries.
Ability to:
Work independently, set goals and meet established deadlines;
Learn and explain appropriate City water conservation and enforcement codes and
ordinances;
Communicate clearly and concisely, both orally and in writing, read, interpret and follow
written instructions;
Provide exceptional customer service to those contacted in the course of work;
Ability to use computers and other office equipment;
Respond to citizen complaints regarding water conservation violations with tact and
diplomacy; investigate and resolve problems, provide water conservation information to
public by phone and in person regarding code regulations;
CITY OF LODI
Water Conservation Specialist
Maintain accurate records or response, description, and resolution of wasteful water
complaints.
Ability to sit and stand for extended periods.
EDUCATION AND EXPERIENCE
Must possess a high school diploma or its equivalent.
Enforcement experience involving a high degree of public contact, investigative skills, or
any combination thereof.
LICENSES
A valid California Class C Driver's License required at the time of appointment.
WORKING CONDITIONS
Office environment and field work, including extreme fluctuations in temperature, noise,
dust and all types of weather and temperature conditions.
Physical Conditions:
Essential and Marginal functions require maintaining physical conditions necessary to
see well enough to read, write and make observations, operate hand tools, vehicles and
equipment; hear well enough to converse on the telephone and in person; bodily
mobility to walk for extended periods of time including slippery or uneven surfaces;
bend, kneel, reach, stand, crouch or climb occasionally; operate assigned equipment
and vehicles; operate office equipment requiring repetitive hand movement and fine
coordination including use of a computer keyboard; verbally communicate to exchange
information; and be able to lift up to fifteen pounds as necessary.
ATTACHMENT C
CITY OF LODI
INVESTMENT POLICY
Fiscal Year 2023/24
Resolution 2023 -
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
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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.
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
1 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
180 days
40%
None
Bankers Acceptances
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,
Indefinite
100%
S&P or Fitch
None
California State Local Agency Investment
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,
Indefinite
30%
or Fitch
Multiple
Joint Powers Authority Pool
(Funds held atRequirements
NCPA shall not
per Gov't
Indefinite
count to this limit)
30%
Code
Certificate of Deposit Account Registry
None
Service (CDARS)
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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.
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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.
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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.
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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
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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.
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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
• Reconciliation of Treasurer's records to
Supervising Budget Analyst
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
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2.4 BROKER/DEALER QUESTIONNAIRE
BROKER/DEALER QUESTIONNAIRE
CITY OF LODI TREASURER'S OFFICE
P. O. Box 3006
Lodi, California 95241
Name.
2. Branch Address:
3. Telephone No.:
4. 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.
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 o { ) 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.
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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
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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 DA
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
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CITY OF LODI
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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
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CITY OF LODI
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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.
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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.
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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.
0
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.
28
Fiscal Year 2023/24 Budget
Adoption
Presented by Andrew Keys, Deputy City Manager
CITY OF
Odt
CALF Fa RN IA
•Position Requests
• Capital Improvement Project Program
• All Fund Expenditures
• FY 2023/24 Strategic Vision Work Plan
• PRCS Current and Deferred Maintenance
• Recommended Action
• Discussion
• Questions
• Prior Shirtsleeve Information
• A net increase of 6 positions requested Citywide with only one (1) in
the General Fund
Administrative Assistant - (C)
City Attorney
-0.5
Administrative Assistant - (C)
City Manager
+0.5
Electrical Engineer
Electric Utility - Engineering
+1
Electric Distribution Operator
Electric Utility - Operations
- 1
Substation Technican Apprentice
Electric Utility -Substation Maintenance
+ 1
Animal Services Manager
Police - Animal Services
+ 1
Associate Civil Engineer
Public Works - Engineering
+ 1
Street Maintenance Worker
Public Works - Streets
+ 1
Junior Transportation Planner
Public Works - Transit
-1
Transportation Coordinator
Public Works - Transit
+1
Wastewater Plant Operator
Public Works - Water Services
+ 1
Water Conservation Specialist
Public Works - Water Services
+ 1
• A 5 -year capital improvement project (CIP) program is included in the
budget document. This program includes current projects, requested FY
2023/24 project funding and projected funding needs through FY 2027/28.
• Funding for FY 2023/24 projects are included in the recommended budget;
budgets recommended in future years will need future approval by City
Council
City of ..i 5 -Year
Capital ImprovementProgram
FY 23/24 FY 24/25
FY 25/26
FY 26/27
FY 27/28
23, 416, 200 30, 767, 700
16,160, 200
15, 595, 200
13,185, 200
• Note pro! ect funding stays with the project until completion and is
approved across fiscal years. FY 23/24 total is new project funding and
does not include FY 22/23 rollover budgets.
• The FY 2023/24 requested expenditure budget:
General Fund
FY 2023/24 Budge -
Police Department
$30,976,320
Fire Department
$18,159,110
Internal Services Department
$7,890,950
Non -Departmental
$7,054,000
Parks, Rec & Cultural Services
$6,759,900
Public Works
$4,105,730
Library
$1,877,990
City Attorney
$1,152,110
City Manager
$833,910
City Clerk
$676,420
Economic Development
$587,530
Community Improvement
$491,770
Total General Fund
$80,565,740
OtherFunds
Electric Utility
FY 2023/24:..
$100,598,340
Wastewater Utility
$22,650,330
Water Utility
$16,663,339
Employee Benefits
$10,870,520
Parks, Recreation and Cultural Srvs
$9,028,490
Transit
$8,188,200
Self Insurance
$6,432,850
Streets
$6,120,960
Capital Outlay
$4,150,000
Community Development
$4,047,950
Fleet Services
$2,525,350
Vehicle/Equipment Replacement
$2,365,280
Library
$1,848,240
Community Grants
$1,822,930
Debt Service
$1,646,000
Special Revenue & Grants
$574,955
Trust & Agency
$76,000
Transportation Development Act
$30,000
Total General Fund
$199,639,734
• City Council adopted a Strategic Vision on May 17, 2023, subsequent to staff
development of budget recommendations.
• Staff has aligned, modified and added to its recommended work plan to complement the
Strategic Vision.
• The FY 2023/24
Strategic
Vision Work
Plan (SVWP) was
added to the budget
beginning
on page 35 and
is available
to view in
the online budget
document as of May
25.
• The SVWP was sent directly to Council on May 25 for review.
• The
SVWP
is also available
for viewing and will be updated with progress quarterly at this
link:
https://www.lodi.gov/1260/City-Council-Strategic-Vision
LA
• To address Council Strategic Imperatives 3, S and 6 (Fiscal Health,
Infrastructure and Parks), City staff conducted a service based
budgeting analysis for parks maintenance.
• The department is 13.2 FTE Maintenance Workers short of current
maintenance obligations system wide.
• Asan example of deferred maintenance funding deficiencies, staff
analyzed playgrounds and found we have $4.5 million in deferred
maintenance and there is a $750,000 annual funding requirement
and $0 in annual funding for playground replacements.
0� 9 ^, 41
PROS Maintenace Service Based Budget Summary
Current Annual Hours
38,194
Current FTE Equivalent
21.8
Needed Annual Hours
61,284
Needed FTE Equivalent
35.0
FTE Defecit
-13
Annual Cost to Fund FTE Deficit $ (1,577,139)
Current Maintenance Budget
$ 21276,290
Increase needed to Current Budget
69.3%
*Note 1 FTE is assumed to work 1,750 hours/year. FTE are paid
2,080 hours, but receive paid time off up to 240 hours vacation, 96
hours sick and 104 hours holiday and are entitled to Darius unpaid
protected leaves. Average cost assumes equal mix of MW I and
MW III Classifications.
04
rf
S 11
9 1 Developer funded new construction
2 Grantfunded replacement
3 City funded replacement through FY 2020/21 Dne time fu nds.
Straight Line Annual
Useful Life
Useful
Annual Contribution to
Contribution To
Park (Includes Fibar)
Year
Cost
Replacemnt bate
Life Years
Playground Replacement
Equip Replacement
Total
FY 2023/24 Budget
Required
Underfunded
Century Park
2061
2011
344,464
16
.................................
..................................
::3UiC3ia:.
364,446
Sa la s
2001
2011
300,066
16
-
:::343ia:
300,000
HSS Playground
2001
2011
300,060
10
-
"::: +i3fk:
366,666
Emerson Park- pour in place
2004
2014
410,000
10
-
410,006
Lawrence- pour in place
2004
2014
280,000
10
-
:::::.;##1:
280,000
Hale- pour in place
2005
2015
500,000
10
-
.:.:5k?I:
500,000
Blakely
2006
2016
345,000
10
-
345,006
Century Meadows- pour in place
2006
2016
425,000
10
-
:::7k
425,000
Peterson Park (west) - pour in place
2006
2016
280,000
10
-
280,000
Van Buskirk
2011
2021
265,000
10
-
265,000
1 Rose Gate North
2015
2025
310,000
to
-
:::
248,000
3 H en rY G laves
2018
2028
380,000
16
-
190,000
1 Orchard Lane
2018
2028
365,000
10
-
:::3€Er
182,500
1 Villa Fiore
2018
2028
340,000
1C
-
:3�4:D
170,000
2 Emerson Park -tot lot
2018
2028
120,000
1C
-
50,000
2 Candy Cane
2019
2029
300,000
16
-
120,000
1 BabJahnson
2021
2031
345,000
16
-
59,000
3 English Oaks
2023
2033
345,000
16
-
:
0
3 Peterson Park (east)
2023
2033
330,000
16
-
# #
4
3 Legion
2023
2033
365,000
16
-
:;:;::;
0
3 Katz@ kia n
2023
2033
310,000
16
-
.. :
0
3 Hale Tot- pour in place
2023
2033
280,000
to
-
1 Lo i Lake
2024
2034
300,000
10
k# #
-30,000
Total
7,495,000
>953
4,414,500
9 1 Developer funded new construction
2 Grantfunded replacement
3 City funded replacement through FY 2020/21 Dne time fu nds.
*Based on the analysis, there is a nearly $2.9 million annual shortfall in
PRCS undinq before addressing annual capital maintenance
or Lodi Lake, Hutchins Street Square, parking lots, facilities,
vehicles and other parks assets.
obligations
equipment,
*The annual $400,000 contribution to PRCS capital that began in FY 2021/22 is not
factored.
Current Maintenance Shortfall fi (11577,139)
Playground Replacement Shortfall $ (749,500)
Operating Budget Deficit $ (527,260)
PRCS Service Level Deficit $ (2,853,899)
•Staff is committed 1
complete this story
considering annual
parks system.
o bring additional information in FY 2023/24 to
and anticipates the annual de icit to grow when
:)bligations to maintenance and capital repair in the
nolle
• Adopt a FY 2023/24 Budget of $280,205,474
• Adopt the Appropriations Spending Limit of $141,172,737 (General Fund limit)
• Approve a net increase of 6 additional positions, including salary ranges for 4 new
classifications, and 3 new job descriptions
• Adopt the 5 -year Capital Improvement Project Program
• Approve Budget and Fiscal Policies for FY 2023/24
• Adopt the FY 2023/24 Investment Policy
• Designate the $470,000 appropriation from FY 2022/23 for the
Hometown Microloan program as a restricted fund balance, and
reauthorize appropriations from that fund balance up to the full
amount for FY 2023/24
• Allocate $2.8 million in FY 2022/23 rental revenue from the
Department of Water Resources for use of land at Lodi Lake as
follows:
• $560,0000 Transfer to Parks Capital (Fund 432)
• $2,240,000 Designate as restricted reserve for purpose of exercising $11.2
million purchase option after 5 years
Vol
• Adopt revisions to the Pension Stabilization Policy discussed on May 9
• Cap annual PSF/ADP contributions to reserves in excess of 16% of fund balance target to 5% of
annual revenues
• Set a 5% of total PERS liability target for PSF funds invested at PARS. All pension contributions
above PERS requirements would then be directed as ADP to pay down pension liability.
• Give the General Fund responsibility for funding PRCS and Library PSF/ADP contributions.
• Direct the Director of Finance to not consider $7,160,260 of General Fund fund balance
in excess of 16% at the close of FY 2021/22 (one-time funds) when calculating fund
balance for FY 2022/23 or for the FY 2023/24 budget
• Direct the City Manager to bring back an item in July 2023 to consider allocation of one-
time funds, and temporarily suspend the Pension Stabilization Policy for these funds only
until such time an item is considered and approved by Council
As
Questions?
�L
•
•May 9 — General Fund
• May 16 — Special Revenue/Enterprise Funds
• May 23 — Capital Projects Overview
•June 7 — Consider Adopting FY 2023/24 budget, CI P
and Fiscal Policies
•June 21 (if needed)
*Budget must be approved by June 30 to avoid risk
to state and federal funds.
•General Fund
■Overview/Revenues/Expenses
■ Key Inputs
■ Five Year Forecast
■ Pension Stabilization Policy Update
LA
• "Decent news" budget
• Overall revenues are projected at a small increase
• Expenditures are showing increases primarily in salaries, PERS cost,
medical benefits, additional support to Library and PRCS operations
and general goods and services cost increases
• Increase of 2.0 positions
• No new service capacity
Revenue
Tax Revenues
$
Budget
i
56,329,670
69.9%
Revenue from Others
$
816951220
10.8%
Operating Transfers In
$
71725,810
9.6%
Charges for Services
$
11699,410
2.1%
Property Revenue
$
415851430
5.7%
Fines & Forfeitures
$
11007,100
1.3%
Other Revenue
$
460,890
0.6%
Licenses & Permits
Total80,j565,740
$
621210
0.1%
100.0%
Char
Operating Ti
$7,725
GENERAL FUND REVENUE BY TYPE
n.........+. n.. ,,.. Fines& Forfeitures flthcr Rcwcnim
General Fund Expenditures by Department
Police Department
$
Budget
FY 2023/24
30,976,320
%
38.4%
Fire Department
$
18,159,110
22.5%
Non -Departmental
$
15,573,940
19.3%
Internal Services Department
$
718901950
9.8%
Public Works (General Fund) Department
$
4,105,730
5.1%
City Attorney
$
1,152,110
1.4%
City Clerk
$
6761420
0.8%
City Manager
$
833,910
1.0%
Economic Development
$
5871530
0.7%
Code Enforcement
$
4911,770
0.6%
Library (from Measure L)
Grand Total
$
$
117,950
80,565,740
0.1%
100.0%
ejo
Pub
Internal Sery
Departmei
$7,890,9E
GENERAL FUND EXPENDITURES BY DEPARTMENT
City Manager
$833,910 Economic Develonment
General Fund Expenses by •-
Budget 2023-24',
of •
Salaries & Benefits
$44,904,180
55.7%
Supplies & Services
$13,597,950
16.9%
Operating Transfers Out
$10,608,590
13.2%
UAL
$8,668,600
10.8%
De bt
$1,646,000
2.0%
Insurances
$1,140,420
1.4%
Grand Total
$80,565.340
100.00%
�� jo
General Fund
Expenditures $80,565,740
UAL
$8,668,600
Operating Transfers Out
$10,608,590
Salaries & Benefits
Supplies & Services $44,904,180
$13,597,950
F- Purpose
•
$1,395,000
Capital
IT Network Refresh
$247,680
Library Operations
$1,760,040
Computer Replacement
$94,530
PRCS Operations
$5,3381780
Community Development Support
$165,000
Streets Maintenance of Effort
$755,600
Equipment Replacement
$177,000
Vehicle Replacement
Grand
$674,960
$10,608,590
�� jo
• Net increase of 2.0 full-time positions
* This position is for succession planning and is temporary
• Increased base operational support to Library and Parks, Recreation
and Cultural Services by 2.86% based on the increase in repeatable
general revenues
• Library: $43,630 funded by Measure L
• PRCS: $110,910 funded by Measure L
• Continue transfer to Parks Capital Fund
• $400,000 funded by Measure L
• $560,000 of additional capital support funded by rental revenue from natural
gas power plant
• General Fund support for Parks, Recreation and
Cultural Services:
• Operational Support of $4,133,550
• $3,377,390 General Fund base support
• $756,160 Measure L base support
• FY 22 base $342,370
• FY 23 base $302,880
• FY 24 base $110,910
• $24,440 for vehicle replacement fund
•General Fund support (cont.)
• Cost of Services of $1,205,230
• Debt Service of $436,680 (Hutchins Street Square)
• Ongoing Capital Support of $400,.000 funded by
Measure L
• $560,000 of additional capital support funded by rental
revenue from natural gas power plant
• FY 24 Operating Deficit ($527,260)
• General Fund support for the Library:
• Operational Support of $1,566,390
• $1,289,700 General Fund base support
• $276,690 Measure L base support
• FY 23 base $233,060
• FY 24 base $43,630
• Cost of Services of $193,650
• Librarian position funded in Measure L $113,370
• FY 24 Operating Deficit ($32,.000)
• Revenues: $9,322,220
• Expenditures: $9,322,220
FY 2022/23 FY 2023/24
Measure L Funded Positions Budget Budget
Cost:
Police Officers 26 25
$
4,322,710
Firefighters 8 8
$
1,368,870
Librarian 1 1
$
113,370
Street Maintenance Worker 0.2 0.2
$
32,880
Total Full -Time 35.2 34.2
$
5,837,830
Public Safety Overtime
$
1,628,820
Part -Time Community Service Officers (2)
$
66,600
Supplies, Materials, Training
$
356,120
Library Operations
$
276,690
Parks, Recreation & Cultural Services Operations
$
756,160
Parks Capital
$
400,000
Measure L Total
$
• ,322,220
310,463
298,160
455,000
153,623
1,595,154
(1,441,531)
17,862
0
0
17,862
49,296
138,614)
2,187,022
337,020
436,000
2,088,042
2,371,522
(322,793)
531,265
24,440
197,000
358,705
900,388
(593,463)
53,934
15,340
0
69,274
183,459
(114,185)
*Fund Target is the straight-line depreciation value of vehicle stock that should be set aside for future replacements
Using Fleet Services estimated useful life expectancies by vehicle type.
Comm Dei
7,470
0
-7,470
Fire -JAM
298,160
298,160
0
Community Imp
3,330
0
-3,330
Police AM06w
337,020
337,020
0
FRCS
24,440
24,440
0
PW - GF�
15,340
15,340
0
* b
i.
• City Council will be
asked on
May 17 to
consider approval
Strategic Initiatives
recently
developed
in a public
meeting
• Downtown
• Economic Development
• Fiscal Health
• Housing
• Infrastructure
• Parks
• Public Safety
• Public Well -Being
• Staff will continue aligning workplan to these initiatives and
the milestones within.
• Update will be provided to Council prior to June 7t" budget
hearing
POW
• FY 2024 budget as recommended is projected forward
• Includes continued contributions to PRCS capital,
network infrastructure, vehicle replacement and
continued increases to PRCS and Library operating
support
• Labor contracts expire June 30, 2025 or December 31,
2025
• No fiscal impact from future negotiations is factored into this
forecast
• Assumes 100% full employment (no vacancies)
• Slow growth is anticipated through the forecast term
Property Taxes - Secured
3.2%
2.5%
2.5%
2.5%
2.5%
2.5%
Sales & Use Taxes
-0.7%
1.0%
3.0%
3.0%
3.0%
3.0%
Transient Occupancy Tax [1]
14.1%
5.0%
3.0%
3.0%
3.0%
3.0%
Business License Tax [1]
15.5%
5.0%
3.5%
3.5%
3.5%
3.5%
Other Taxes
8.0%
5.0%
5.0%
5.0%
5.0%
5.0%
EU Pilot
1.0%
0.5%
0.5%
0.5%
0.5%
0.5%
Property Tax in Lieu VLF
4.0%
3.7%
3.7%
3.7%
3.7%
3.7%
Transfers In
8.6%
5.0%
4.0%
4.0%
4.0%
4.0%
Property Taxes - CFD [2]
36.6%
10.0%
5.0%
5.0%
5.0%
5.0%
Measure L
1.5%
1.0%
3.0%
3.0%
3.0%
3.0%
Other Revenues
-1.5%
2.0%
2.0%
2.0%
2.0%
2.0%
[1] Outsized growth in Business License and TOT is due to increased monitoring of compliance and collections efforts of the City's
contracted service provider.
[2} Growth reflects continued strong demand for residential housing in calendar year 2023.
Salaries [1] 100% Staffed 3.0%
3.0%
2.5%
2.5%
2.5%
PERS Normal Cost 100% Staffed 3.0%
3.0%
2.5%
2.5%
2.5%
PERS UAL Aug 2022 Report 3.5%
3.5%
3.0%
3.0%
3.0%
Other Benefits 100% Staffed 2.0%
2.0%
2.0%
2.0%
2.0%
Operations Work Plan 5.0%
5.0%
5.0%
5.0%
5.0%
Debt [2] Actual Actual Actual
Actual
Actual
Actual
Transfers Actual 0.5%
0.5%
0.5%
0.5%
0.5%
Ale,
[1] Includes current contracts only with known contracts considered.
+�
[2] Based on actual debt service including the new animal shelter financing.
Property Taxes
13,070,000
13,486,880
13,825,000
14,171,000
14,526,000
14,890,000
15,263,000
Sales & Use Taxes
16,891,970
16,779,430
16,948,000
17,457,000
17,981,000
18,521,000
19,077,000
Transient Occupancy Tax
1,490,000
1,700,000
1,785,000
1,839,000
1,895,000
1,952,000
2,011,000
Business License Tax
1,900,000
2,193, 720
2,304,000
2,385,000
2,469,000
2,556,000
2,646,000
Other Taxes
4,016,220
4,337,070
4,554,000
4,782,000
5,022,000
5,274,000
5,538,000
EU Pilot
7,564,240
7,636,350
7,675,000
7,714,000
7,753,000
7,792,000
7,831,000
Property Tax in Lieu VLF
6,820,000
7,090,000
7,353,000
7,626,000
7,909,000
8,202,000
8,506,000
Transfer In
7,115,470
7,725,810
8,113,000
8,438,000
8,776,000
9,128,000
9,494,000
Property Taxes - CFD
640,000
874,000
962,000
1,011,000
1,062,000
1,116,000
1,172,000
Measure L
9,183,800
9,322,220
9,416,000
9,699,000
9,990,000
10,290,000
10,599,000
Other Revenues
6,723,590
6,620,260
6,753,000
6,889,000
7,027,000
7,168,000
7,312,000
Year ForecastA" ra 41n;
Salaries
32,190, 510
33,160, 610
34,155, 000
35,180, 000
36, 060, 000
36, 962, 000
37, 886, 000
PERS Normal Cost
2,358,740
3,218,590
3,315,000
3,414,000
3,499,000
3,586,000
3,676,000
PERS UAL
8,640,220
8,668,600
8,972,000
9,286,000
9,565,000
9,852,000
10,148,000
Other Benefits
9,108,750
10,153,160
10,356,000
10,563,000
10,774,000
10,989,000
11,209,000
Operations [1]
16,480,040
16,636,358
17,468,000
18,341,000
19,258,000
20,221,000
21,232,000
Debt
1,207,210
1,209,326
1,209,030
1,207,390
1,208,120
1,208,120
1,208,120
Transfers
5,194,040
4,719,096
4,743,000
4,767,000
4,791,000
4,815,000
4,839,000
Catastrophic Reserve [4] 5,298,519 5,475 482 5.621.760 5 784 960 5,953,600 6,127,920 6,308,000
5,298,519 5,475,482 5,621,760 5,784,960 5,953,600 6,12 ,
MeasuFLCat�asrop� 847,920
Economic Rese 734,704 745,778 753,280 775,920 799,200 823,200
Pension Stabilization Fund 14, 032,M-4 109391,334 9,232,614
[1] All pandemic related activity is netted out of operations.
[2] Does not include $2.8 million in expenditures related to the new Peaker power plant revenue. Of that $2.24 million is programmed as
restricted fund balance to purchase the plant in 5 years and $560,000 is programmed as additional Parks Capital transfer out.
[3] Does not include $7.6 million in one time funds from reserves over 16% available at close of FY 2021/22.
[4] Per policy, this is set at 8% of revenue, catastrophic reserves are prioritize, then economic reserves, then unassigned.
[5] 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 projected every year beyond FY 2023/24 through the forecast term.
Risks
• Local Recession
• Labor Contracts
• General Fund labor contracts expire June 30, 2025, or December 31, 2025
• Pace of Development
• Inflation
• CaIPERS — Assumption changes and investment risk
• Additional service needs/demands from the public
Opportunities
• Recent revenue trend line is above the forecast base case
• Economic development
• Loan program
• Substantial new municipal capital spending (nearly $25 million for a new animal shelter and variety of projects using one-time surplus dollars)
• Revenue enhancement
• Vacancies and Workforce Demographics
• The PSP was adopted in its current form in 2017.
• Favorable economic conditions led to the City
accumulating significant balance since 2017 in the
PSP and to annual excess fund balances far
exceeding staff expectations or the City's history
experience.
• The Policy Update is designed to maintain the PSF
balance to provide insurance against increasing
pension costs, put downward pressure on future
pension bills and to address outsized fund balance
excess should it occur in the future.
0
6.30.21 PERS Actuarial - as of 3.31.22
MVA
Liability
Safety $ 156,554,968 $ 233,987,791
Miscellaneous $ 177,481,645 $ 224,689,925
All Plans $ 334,036,613 $ 458,677,716
Funded Ratio
66.9%
79.0%
72.8%
PARS Balance 3.31.22
$
20,902,055
N/A
4.6%
Total Pension Funding at 3.31.22
$
354,938,668
$ 458,677,716
77.4%
• Does not include -6.1% nominal earnings for Fiscal Year ending
June 30, 2022, which is similar to a -12.9% real loss for the fund.
MVA of an 80% Funded Plan $ 366,942,172.80
Investments/Earnings Needed to reach 80% $ 12,003,505
of Progress Towards 80% Funded Since PARS
Implementation 63.5%
Investments/Earnings Needed to reach 100% $ 103,739,048
of Progress Towards 100% Funded Since PARS
Implementation 20.1%
• Does not include -6.1% nominal earnings for Fiscal Year ending
June 30, 2022, which is similar to a -12.9% real loss for the fund.
• Maintain 80% target funding when combining PERS and
PARS assets.
• Cap annual PSF contributions from the General Fund at
5% of revenue with excess brought to Council for
appropriation (one time funds).
• This provision is in effect until the PSF is equal to 5% of the
total Liability for Safety and Misc Combined (currently $22.9
million)
• Subsequently, annual excess fund balance in the General
Fund continues to be used for pensions but is made as
Additional Discretionary Payments (ADP) to CalPERS.
• Formally recognizes the practice of making the Library
and PRCS contributions to PSF or ADP a General Fund
responsibility.
•Enterprise Funds
• Electric
• Water
•Wastewater
•Transit
•Special Revenue Funds
• Streets
• Community Development
• Parks, Recreation and Cultural Services
• Library
• Capital Outlay
•Vehicle/Equipment Replacement
°
:e
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2024
With Actuals for FY 2021-22 and Year End Estimates for FY 2022/23
Beginning Cash Balance $42,164,766 $37,741,126
Unreserved
$29,811,227
Revenue
$85,997,192
$97,333,760
$97,632,770
Expenditures
$90,420,832
$102,763,659
$100,598,340
Net Difference
(Revenue Less Expenditures)
($4,423,640)
($5,429,899)
($2,965,570)
Ending Cash Balance
$37,741,126
$29,811,227
$26,845,657
Unreserved"
Cash Balance as % of Expenses
42%
29%
27%
*Annual Continuing Disclosure/Audited Financial Statements
VOW
**Includes $2.5M drawdown of reserves in FY
22/23 to buy down ECA
***Does not include proposed rate increase
• Revenues are $299,010 higher than FY 2022/23 estimated actuals
■ Customer charges - $3,791,840 higher
■ Base rate revenue fairly flat
■ Increase in ECA due to increased power supply costs
■ Reimbursable charges - $3.1M lower
■ One time reimbursement in FY 23 for Power Plant
■ Work for others - $123,000 lower
■ Development Impact Fees - $301,930 lower
■ Greenhouse gas - $140,570 lower
• Expenses are $2,165,319 lower than FY 2022/23 estimated actuals
■ Salary & benefits - $920,390 higher
■ Supplies, materials & services - $3,379,228 higher
■ Due to power supply costs
■ Capital projects & equipment - $6,518,887 lower
■ FY 23 included $4.3M budget for Power Plant
■Staffing requests:
■ Substation Technician Apprentice (+1)
■ Electrical Engineer (+1)
■ Electric Distribution Operator II (-1)
.OW
Lfl
• Forecasted CPI level base rate increase(s) FY 2024 and FY 2025
• Assumes all positions are staffed 100%
• ECA adjusts only for changes in power supply costs
• Need for base rate adjustments dependent on changes in non -power
supply costs and decline in reserves
• FY 24 proposed budget does not include additional revenue from
proposed rate adjustment
• If approved by Council, adjustments will be made at midyear
FY 23/24
.-
Budget
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
FY 27-28
Forecast
Propos
Proposed Rate Adjustments
2%
2%
0%
0%
0%
Available Cash
$29.5M
$32.1M
$34.3M
$36.OM
$37.3M
Reserve Target
$26.9M
$27.5M
$28.1M
$28.7M
$29.2M
of Target
110%
117%
122%
126%
128916
• Spare Substation Transformer - $2,,000;000
• 12kV Overhead Maintenance - $11110,,200
• Substation Relay Modernization - $11040,,000
• Work for Others (Reimbursed) - $750,000
• 60 kV Breaker Upgrades/Replacements - $294,000
• 12kV Underground Maintenance - $265,000
• LED Streetlight Improvements — $250,,000
• Substation Intrusive Maintenance - $80,000
• Substation Load Tap Changer Upgrades - $72,,000
• Streetlight Maintenance - $50,000
• 230kV Interconnection - $20,,000
• Replacement of Material Handler Bucket Truck - $350,000
• Replacement of Single Worker Bucket Truck - $225,000
• Replacement of Digger Derrick Line Truck - $375,000
• Replace of Construction/Maintenance Supervisor Medium Duty Pick Up Truck
with EV - $120,000
For compliance with Advanced Clean Fleets Regulation
• Replacement of LEU Pool Vehicle - $60,000
• Replacement of Worn Out/Undersized Grounding Set - $15,000
.OW
51
11
Distribution Capacity Program
I
Budget*Project FY
$0
FY 24-25
•
$0
FY •
$0
$0
$0
Underground / Overhead Maintenance
$1,375,200
$725,200
$725,200
$725,200
$725,200
Streetlight Maintenance / LED Improvements
$300,000
$300,000
$50,000
$50,000
$50,000
230 kV Interconnection Project*
$20,000
$25,000
$25,000
$25,000
$25,000
Substation Maintenance/ Improvements
$3,486,000
$500,000
$230,000
$230,000
$180,000
Work for Others
$750,000
$750,000
$750,000
$750,000
$750,000
Vehicles & Equipment
$1,145,000
$318,000
$395,000
$455,000
$60,000
Total Projects
$7,076,200
$2,618,200
$2,175,200
$2,235,200
$1,790,200
*Does not include rollover or unexpended funds from FY 23
**Includes planning and design costs only — construction costs estimated at —$30M and will be debt financed
Purpose
Operating Reserves
NCPA General Operating
Reserve
Tota I Ta rget :
Estimated FY 2023/24
Reserve:
90 Days Cash
NCPA Identified Items
$22,672,540
$ 3,796,849
$26,4691389
$26,8451657
0
Estimate Changes in Fund Balance
For the Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for FY2022-23
Net Difference (Revenues Less Ex penditures) 2,675,737 21,861,462 (1,379,170)
Restricted Cash Balance - - -
Ending Cash Balance Unreserved 20,428,915 42,290,377 40,911,207
Cash Balance as a percentage of expenses: 166% 239% 246%
* Actuals include balancing sheet adjustments
NOTE: FY 22/23 revenue includes $24 million revenue for TCP settlement.
s
Estimated
2021-22
2022-23
2023-24
Water Utility
Actuals
Actuals
Budget
Cash Balance
BeginningCash Balance Unreserved
17,753,178
20,428,915
42,290,377
Revenues
14,972,044
39,568,122
15,284,170
Expenditures *
12,296,307
17,706,660
16,663,340
Net Difference (Revenues Less Ex penditures) 2,675,737 21,861,462 (1,379,170)
Restricted Cash Balance - - -
Ending Cash Balance Unreserved 20,428,915 42,290,377 40,911,207
Cash Balance as a percentage of expenses: 166% 239% 246%
* Actuals include balancing sheet adjustments
NOTE: FY 22/23 revenue includes $24 million revenue for TCP settlement.
s
• Revenues are $98,250 lower than FY 2022/23 estimated actuals
■ Developer Impact fees - $145,850 higher
■ Non -potable water - $41,820 higher
■ Investment earnings - $300,370 lower (due to fluctuations in investment
calculations, this item is no longer being included as a budgetary item. Actual
interest earnings will be posted according to fund cash balances.)
54
•Expenses are $1,043,320 lower than FY 2022/23 estimated actuals
■ Salary & benefits - $327,290 higher
■ Supplies, materials & services - $91,300 higher
■ Transfer Out - $45,600 lower
■ Vehicles & equipment - $313,850 lower
■ Capital projects & equipment - $1,102,460 lower
■Staffing request:
.. Title -..
Water Conservation Specialist Public Works - Water Services + 1
Net increase + 1
air,
I 7
MI
• Southwest Gateway Water Tank - $4,000,000
• Well 15 Pump Rehab - $250,000
• MUS Admin Building Roof Replacement - $85,000
Total cost $170,000, shared with Water Utility $85,000 each
• Water Taps/Main Replacements - $125,000
• PCE/TCE Oversight - $100,000
• Water Project Planning - $25,000
• Replace full-size truck for pick and delivery of materials - $60,000
1.8.3
FY 22-23
Forecast
Available Cash $9,467,222
Days Cash 294
(180 day target)
Minimum Reserve $2,933,500
Target (25%)
Reserve Target $5,867,000
(50%)
% of Days Cash 164%
Target
FY 23-24* FY 24-25 FY 25-26 FY 26-27 FY 27-28
Forecast Forecast Forecast Forecast Forecast
$8,623,500 $5,667,450 $4,236,650 $4,150,150 $3,038,550
264 169 123 118 84
$2,979,000 $3,056,000 $3,135,000 $3,217,000 $3,302,000
$5,958,000 $6,112,000 $6,270,000 $6,434,000 $6,604,000
147% 94% 69% 65% 47%
=orecasts are based on current Prop 218 rate plan which expires 12/31/23. New rate study scheduled for 1/1/24
AI go
Estimate Changes in Fund Balance
Forthe Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for FY2022-23
Wastewater Utility
Cash Balance
Beginning Cash Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Restricted Cash Balance
Ending Cash Balance Unreserved
Cash Balance as a percentage of expenses:
* Actuals include balancing sheet adjustments
2021-22
Actuals
Estimated
2022-23
Actuals
2023-24
Budget
26,591,516
30,397,086
17,843,336
19,127,416
19,059,410
19,449,290
15,321,845
31,613,160
22,650,330
3,805,570
(12, 553, 750)
(3,201,040)
30.397.086 17.843.336 14.642.296
198%
56% 65%
• Revenues are $389,880 higher than FY 2022/23 estimated actuals
• Development Impact fees - $661,550 higher
• Customer accounts - $95,330 higher
• Sewer tap fees &other revenue - $38,000 lower
• Investment earnings - $329,000 lower (due to fluctuations in investment
calculations, this item is no longer being included as a budgetary item. Actual
interest earnings will be posted according to fund cash balances.)
• Expenses are $8,962,830 lower than FY 2022/23 estimated actuals
• Salary & benefits - $774,670 higher
■ Supplies, materials & services - $319,380 higher
■ Transfer Out - $278,720 lower
■ Capital projects & equipment - $9,778,160 lower
■Staffing request:
61
• White Slough South Electric Building and
Improvements - $5,500,000
Note: Appropriation approved on April 19 (FY 23 funding)
• MUS Admin Building Roof Replacement - $85,.000
Total cost $170,000, shared with Water Utility $85,000 each
•White Slough Fencing/Cameras/Solar - $300,000
• White Slough Digester # 3 Rehab - $1,000,000
• Miscellaneous Projects/Planning - $125,000
• Wastewater Taps and Relocations - $75,000
62
0
VF*
•New portable storm pumps - $90,000
• Plant equipment/pump upgrades- $250,000
• Replace stationary generator - $75,000
• Replace maintenance truck - $115,000
• Replace light duty pick-up truck - $50,000
• Replace full size pick-up truck - $60,000
• Replace utility van - $90,000
Available Cash
Days Cash
(180 day target)
FY 22-23 FY 23-24* FY 24-25 FY 25-26 FY 26-27 FY 27-28
Budget Forecast Forecast Forecast Forecast Forecast
$11,831,101
$4,597,500
$5,239,400
$5,814,600
$1,689,900
($868,300)
311
118
148
138
39
(22)
Minimum Reserve $3,467,000
Target (25%)
Reserve Target $6,934,000
(50%)
% of Days Cash 173%
Target
$3,545,500 $3,226,000 $3,838,000 $3,925,000 $3,604,500
$7,091,000 $6,452,000 $7,676,000 7,850,000
66% 82% 77% 22%
orecasts are based on current Prop 218 rate plan which expires 12/31/23. New rate study scheduled for 1/1/24
M,
7,209,000
(12%)
• The City is constantly monitoring water supplies and their potential
impact on Lodi.
• Sufficient supplies through surface and ground water are available to
serve the City's needs.
• Both water and wastewater financial plans forecast rate increases of
at least 3% for the next fiscal year to keep up with inflation. The
current Prop 218 rate plan expires December 31, 2023.
Estimate Changes in Fund Balance
Forthe Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for FY2022-23
Transit
Cash Balance
Beginning Cash Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Restricted Cash Balance
Ending Cash Balance Unreserved
Cash Balance as a percentage of expenses:
Estimated
2021-22 2022-23
Actuals Actuals
2,983,653
3,125, 293
4,350,768
(1,225,475)
1,758,178
10,430,540
10, 648, 530
(217,990)
2023-24
Budget
1,540,188
7,441,380
8,188, 200
(746,820)
1.758.178 1.540.188 793.368
40%
14%
• Revenues are $2,989,160 lower than FY 2022/23 estimated actuals
■ Federal stimulus (CARES) - $1,155,530 lower
■ Federal grants (capital) - $2,951,600 lower
■ Federal grants (Dial -A -Ride) - $688,000 higher
■ FTA —American Rescue Act - $727,000 higher
■ TDA allotment (capital) - $950,000 lower
■ TDA allotment (Dial -A -Ride) - $500,000 higher
■ Prop 1B State of Good Repair - $62,510 higher
AVA
• Expenses are $5,460,330 lower than FY 2022/23 estimated actuals
■ Salary &benefits - $45,000 higher
■ Supplies, materials &services - $145,110 higher
■ Insurances - $31,160 lower (PL/PD costs)
■ Transfer Out - $25,820 higher
■ Capital projects &equipment - $5,645,100 lower
• Staffing request:
• Parking Structure Guard Shack - $85,000
• Park Structure Emergency Lighting Battery Backup Replacement -
$80,000
• Replace (12) 27' busses - $3,000,000 (this is being reprogrammed
from FY 23)
•Special Revenue Funds
• Streets
• Community Development
• Parks, Recreation and Cultural Services
• Library
• Capital Outlay
•Vehicle/Equipment Replacement
Estimate Changes in Fund Balance
Forthe Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for FY2022-23
Estimated
2021-22
2022-23
2023-24
Streets Fund Actuals
Actuals
Budget
Fund Balance
Beginning Fund Balance 14,133,850
17,296,542
8,509,132
Revenues 6,893,133
8,645,820
9,681,830
Expenditures 3,730,441
17,433,230
6,020,930
Net Difference (Revenues Less Expenditures) 3,162,691
(8,787,410)
3,660,900
Restricted Fund Balance 294,423
307,134
307,134
Ending Fund Balance Unreserved 17,002,118
8,201,998
11,862,898
Fund Balance as a percentage of revenue: 247%
95%
123%
• Revenues are $1,037,730 higher than FY 2022/23 estimated actuals
• Federal Grants - $537,490 higher
• State Grants - $901,670 higher
• Measure K - $477,780 lower
• Development Impact Fees - $312,940 higher
• Gas Taxes — $125,100 higher
• Transfer In - $175,000 lower (FY 23 vehicle purchase)
• TDA Allotment - $100,000 lower
• Expenses are $11,312,300 lower than FY 2022/23 estimated actuals
• Salary & benefits - $431,960 higher
• Supplies & Services - $62,890 higher
• Transfer Out - $33,740 lower
• Capital projects & equipment - $11,773,410 lower
• Staffing Request:
74
• Harney Lane Widening - $100,000
• Rapid Flashing Beacons - $50,000
• Lodi Ave Signal Coordination - $90,000
• Signal Preventative Maintenance - $250,000
• Annual Pavement Maintenance - $100,000
• Annual Street Striping - $80,000
• Sidewalk Repair - $170,000
• Pavement Crack Seal - $75,000
• Ham/Elm Signal Modification - $250,000
• Concrete Paver Maintenance - $30,000
• Downtown Concrete Cleaning - $30,000
• Reverse Frontage Wall Repair - $25,000
s!� • Project Planning - $25,000
y
•Replace Dump Truck - $177,800
• Replace 10 -wheel Dump Truck - $250,000
• Replace Roller - $70,000
tgo
l ew
Estimate Changes in Fund Balance
Forthe Fiscal Year Ended
June 30, 2024
With Actuals for FY2021-22 and Year
End Estimates for FY2022-23
Estimated
2021-22
2022-23
2023-2024
Community Development
Actuals
Actuals
Budget
Fund Balance
Beginning Fund Balance
8,389,815
10,069,731
8,606,451
Revenues
4,217,405
2,562,700
2,461,900
Expenditures
2,537,489
4,025,980
4,047,980
Net Difference (Revenues Less Expenditures)
1,679,916
(1,463,280)
(1,586,080)
Restricted Fund Balance
313,055
326,570
326,570
Ending Fund Balance Unreserved
9,756,676
8,279,881
6,693,801
Fund Balance as a percentage of revenue:
231%
323%
272%
•Revenues are $100,800 lower than FY 2022/23 estimated actuals
• Fees - $79,200 higher
• Federal Grants - $94,000 lower
• Investment earnings - $86,000 lower (due to fluctuations in investment
calculations, this
item is
no longer being included
as a budgetary item. Actual
interest earnings
will
be
posted
according
to fund
cash
balances.)
• Expenses are $22,000 higher than FY 2022/23 estimated actuals
• Salary & benefits - $469,010 higher
• Supplies, materials & services - $447,010 lower
Estimate Changes in Fund Balance
For the Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for
FY2022-23
Estimate
2021-22
2022-23
2023-24
Parks, Recreation & Cultural Services Fund
Actuals
Actuals
Budget
Fund Balance
Beginning Fund Balance
1,578,392
2,406,461
2,199,991
Revenues
9,911,725
7,834,760
8,501,230
Expenditures
9,083,656
8,041,230
9,028,490
Net Difference (Revenues Less Expenditures)
828,069
(206,470)
(527,260)
Restricted Fund Balance
541,978
565,375
565,375
Ending Fund Balance Unreserved
1,864,483
1,634,616
1,107,356
Fund Balance as a percentage of revenue:
19%
21%
13%
Parks, Recreation & Cultural S
evenue Highlights
• Revenues are $666,470 higher than FY 2022/23
estimated actuals
• Charges for Services - $517,290 higher
Program Fees were down in FY 21 due to COVID closures
• Parks and HSS Rental Income - $49.,760 lower
• Operating Transfer In - $198,940 higher
• Measure L operational support increase: $110,910
Parks, Recreation & Cultural S
Expenditure Highlights
• Expenses are $987,260 higher than FY 2022/22
estimated actuals
• Salaries &Benefits- $845,980 higher
$581,320 Part -Time
• Supplies and Services - $141,280 higher
Estimate Changes in Fund Balance
Forthe Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for FY2022-23
Estimated
2021-22
2022-23
2023-24
Library Fund
Actuals
Actuals
Budget
Fund Balance
Beginning Fund Balance
964,226
1,341,123
1,007,863
Revenues
1,662,405
2,178,160
1,816,240
Expenditures
1,285,507
2,511,420
1,848,240
Net Difference (Revenues Less Expenditures)
376,898
(333,260)
(32,000)
Restricted Fund Balance
173,405
180,891
180,891
Ending Fund Balance Unreserved
1,167,719
826,972
794,972
Fund Balance as a percentage of revenue:
70%
38%
44%
• Revenues are $361,920 lower than FY 2022/23 estimated actuals
• Operating Transfer In - $327,920 lower
$420,000 in FY 23 transfers for capital projects
• Fees and Grants - $34,000 lower
• Measure L operational support increase: $43,630
• Expenses are $663,380 lower than FY 2022/23
estimated actuals
• Salaries & Benefits - $61,500 higher
• Supplies and Services - $13,860 higher
• Transfers Out - $251,550 lower
• FY 23 transfer out from fund balance to Library Capital
• Capital Projects - $486,990 lower
Estimate Changes in Fund Balance
Forthe Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for FY2022-23
Estimated
2021-22 2022-23 2023-24
Capital Outlay Fund Actuals Actuals Budget
Fund Balance
Beginning Fund Balance 9,165,505 21,306,662 2,299,182
Revenues 14,685,807 2,765,260 3,499,610
Expenditures 2,544,650 21,772,740 4,150,000
Net Difference (Revenues Less Expenditures) 12,141,158 (19,007,480)
Restricted Fund Balance - -
Ending Fund Balance Unreserved 21,306,662 2,299,182
* FV22 actuals and FV 23 estimates include ARPA and General Fund surplus budget allocations
(650,390)
1,648,792
Capital Outlay
Capital Outlay Fund is a grouping of funds for the purpose of managing
governmental -type capital projects. These are kept separate from day-
to-day operating funds. They consist of:
• General Fund Capital
• Parks Capital
• Developer Impact Fee Capital for Police, Fire, Parks, General Facilities,
Neighborhood Parks and Art in Public Places
Capital Outlay Revenue
$3,499,610
• Developer Impact Fees: $2,068,470
• Transfer from General Fund: $435,000 for General Projects
• Transfer from General Fund: $560,000 new revenue for Parks Projects
• Transfer from Measure L: $400,000 for Parks Projects
Capital Outlay
Additions to the CIP Program for FY 24
• General Fund Capital
• New animal shelter - $4,000,000
• Parks Capital
• Tree trimming - $200,000
Vehicle Equipment Replacement
Overview
Estimate Changes in Fund Balance
For the Fiscal Year Ended June 30, 2024
With Actuals for FY2021-22 and Year End Estimates for FY2022-23
Estimated
2021-22
2022-23
2023-24
Vehicle & Equipment Replacement Funds Actuals
Actuals
Budget
Fund Balance
Beginning Fund Balance 1,954,844
2,607,406
3,321,456
Revenues 4,049,958
2,910,750
1,444,670
Expenditures 3,397,396
2,196,700
2,365,280
Net Difference (Revenues Less Expenditures) 652,562
714,050
(920,610)
Restricted Fund Balance -
-
-
Ending Fund Balance Unreserved 2,607,406
3,321,456
2,400,846
* FV22 includes recently adopted General Fund surplus alloctions
.e
Vehicle & Equipment Replacement
Vehicle and Equipment Replacement Fund is a grouping of funds for
the purpose of managing the replacement of items costing more than
$10,000 for governmental departments. These are kept separate from
day-to-day operating funds. They consist of:
• Equipment replacement for Police, Fire, Public Works (Engineering,
Facilities), Community Development, Parks and Community
Improvement
• Information Technology replacement
• Vehicle replacement -Police, Fire, Public Works (Engineering,
Facilities), Community Development, Parks and Community
Improvement
91
Vehicle & Equipment
Replacement Revenue & Expenses
Revenues for replacement funds come 100% as
transfers from operating accounts.
• Equipment replacements: $202,.000
• Vehicle replacements: $674,960
• Information Technology replacements: $567,710
Expenses for FY 24:
• Equipment: $423,980
• Vehicles: $1,088,000
• Information Technology: $853,500
92
310,463
298,160
455,000
153,623
1,595,154
(1,441,531)
17,862
0
0
17,862
49,296
138,614)
2,187,022
337,020
436,000
2,088,042
2,371,522
(322,793)
531,265
24,440
197,000
358,705
900,388
(593,463)
53,934
15,340
0
69,274
183,459
(114,185)
*Fund Target is the straight-line depreciation value of vehicle stock that should be set aside for future replacements
Using Fleet Services estimated useful life expectancies by vehicle type.
Comm Dei
7,470
0
-7,470
Fire -JAM
298,160
298,160
0
Community Imp
3,330
0
-3,330
Police AM06w
337,020
337,020
0
FRCS
24,440
24,440
0
PW - GF�
15,340
15,340
0
* b
i.