2011/05/10 City Council Agenda Packet (Special Meeting)Judy Hauff
City Clerk
City Hall
City of Rohnert Park* 130 Avram Avenue +Rohnert Park, California 94928
Phone: (707) 588 -2225 ♦ FAX: (707) 792 -1876 ♦ WEB: www.rncity.org
ROHNERT PARK CITY COUNCIL
& COMMUNITY DEVELOPMENT COMMISSION
JOINT SPECIAL MEETING
NOTICE AND AGENDA
NOTICE IS HEREBY GIVEN that a JOINT SPECIAL MEETING of the
ROHNERT PARK CITY COUNCIL and the COMMUNITY DEVELOPMENT
COMMISSION
of the CITY OF ROHNERT PARK,
will be held on
Tuesday, May 10, 2011 at 10:00 a.m.
MEETING LOCATION CITY HALL — COUNCIL CHAMBER
130 Avram Avenue, Rohnert Park, California,
Said special meeting shall be for the purpose of the following:
10:00 a.m.
1. CITY COUNCIL & CDC JOINT SPECIAL MEETING - Call to Order /Roll Call
(Ahanotu Callinan Mackenzie_ Stafford_Belforte__)
2. PUBLIC COMMENTS
3. WORK SESSION for REVIEW of CITY & CDC BUDGETS
A. Discussion of Critical Financial Issues
1. Total Budget Structural Deficit
2. Unfunded Liabilities
a. Retiree Medical
b. Infrastructure
c. Vehicles
d. Accrued Leaves
e. Current Health & Pensions
3. City Revenues Impacted Most by Recession
4. Sewer Fund Overview
5. Redevelopment Agency Update
6. General Fund Budget FY 2011 -12
7. Proposed Fiscal Policies
�ity of Rohnert Park JOINT SPECIAL MEETING Agenda (2 of 2) May 10, 2011
. for City CouncillCommunity Development Commission / Rohnert Park Financing Authority
B. City Departments — Overview of Services /Programs
1. Administration
a. City Manager
b. City Clerk
c. Economic Development
d. Human Resources
2. City Attorney
3. Administrative Services
a. Finance
b. Information Services (IS)
4. Development Services
a. Building /Planning /Engineering
C. Council discussion /direction
4. ADJOURNMENT of City Council & CDC Joint Special Meeting
DISABLED ACCOMMODATION: If you have a disability which ;requires an interpreter or other person to assist you while
attending this City Council meeting, please contact the City Offices at (707) 588 -2225 at least 72 hours prior to the meeting to ensure
arrangements for accommodation by the City. Please make sure the City Manager's office is notified as soon as possible if you have
a visual impairment requiring meeting materials to be produced in another format (Braille, audio -tape, etc.)
PUBLIC COMMENTS: For public comment on items listed or not listed on the agenda, or on agenda items if unable to
speak at the scheduled time (limited to three minutes per appearance and a 30 minute total time limit, or allocation of time
based on number of speaker cards submitted) - PLEASE FILL OUT A SPEAKER CARD PRIOR TO SPEAKING —
JH- 051011 Joint Special Agenda- RPCity Council -CDC'
City of Rohnert Park
5110111 City Council & CDC
Joint Special Meeting
AGENDA & ITEMS
TO
FOLLOW
IN SUPPLEMENTAL PACKETS TO BE
DELIVERED FRIDAY, 5/6/11
THE OFFICE OF THE CITY MANAGER
City of Rohnert Park. 130 Avram Avenue. Rohnert Park, CA 94928 .[707] 588 -2226. Fax: [707] 792 -1876
TO: City Council
FROM: Gabriel A. Gonzalez, City Manage
DATE: May 6, 2011
RE: Budget Process Message
As City Manager, my role during a budget process is to inform the City Council and residents of
Rohnert Park's financial condition, whether it is good, bad or ugly news. The news I have to
deliver is, candidly, ugly.
Simply stated, we are broke, and even worse, as a community we face a pile of debt.
There is no denying that the finances of the City are, all things considered, in desperate shape.
And there is no short-term solution for us until we address all of the financial issues facing the
City.
However, in the past two - and -a -half years, we have made much progress on forthrightly
addressing the issue of our expenditures greatly exceeding our revenues. We have reduced our
annual operating budget expenditure by about $7 million dollars. We have reduced City staff
from 191 to 153 positions, or 38 fewer positions today. We have asked our employees to join
with us and to help us in this cost - cutting crusade.
On May 10th, we commence the budget presentation and preparation process.
The "big picture" regarding this year's budget may be less on the operational side and more in
the "unfunded liability" arena. Unfunded liabilities simply means the City has made future
commitments to our employees and our residents but has not as yet set the money aside to pay
for these future commitments.
May 10th will largely be the presentation of background materials on the City's overall finances,
with a special emphasis on unfunded liabilities in two areas: Retiree health benefits, and the
City's capital improvement /infrastructure, utility, building rehabilitation and general
replacements needs, along with vehicle and equipment replacement needs.
These two areas are real problems for the City and ,very expensive to address. While there is no
possibility that the City can address unfunded liabilities, in the shorter term, we must develop a
longer -term approach toward addressing them. Left unaddressed, the problem just grows
exponentially over time.
The way to proceed is to set aside funds for just this purpose and restricted to this sole function.
After this extensive overview, and as time permits, we shall then move into the presentation of
the departmental budgets. You'll notice two substantial changes to the presentation.
The first is that we have attempted to distinguish between mandated, core, and discretionary
services. These distinctions are not absolute, but will serve as a guide to make certain that the
City is addressing the most critically important objectives with available resources.
The second is that we have attempted to identify alternative service delivery options, the major
tasks completed in Fiscal year 2010/2011, and the major goals for Fiscal year 2011/2012. The
latter is particularly important as we move over the next few years from an emphasis on what we
buy (object of expenditure budgeting) to what we achieve (performance budgeting) with the
resources available to us.
We will also be presenting the beginning of some new proposed financial policies for the City,
which will receive further refinement in the weeks ahead.
Obviously, establishing the appropriate share of the budget to be devoted to providing some level
of funding towards our unfunded liabilities will be one of the more difficult parts of the budget
process.
A major topic of discussion at the appropriate point, after the analysis is completed, will be the
costs /cost savings of police and fire services. It is anticipated it will be at least May 24th before
we have the facts and analysis available for that discussion.
Conclusion
It will again be a difficult and challenging budget year, as we attempt to present a high level of
services to our residents within the resources available. I am the eternal optimist who always
sees the glass half full; however, I am compelled to inform you, that while we have opportunities
ahead, we will also be faced with difficult choices as we chart a course towards financial
stability.
NECESSARY MUNICIPAL FUNCTIONS VIS -A -VIS THOSE THAT ARE NOT
In the U.S. Constitution there are just two levels of sovereignty: the national (federal)
government and the state government. The U.S. Constitution is silent on local government,
which is a power left to the states and the people. Cities are, therefore, "creatures of the state."
In California the state constitution empowers general law cities to make and enforce within their
limits all local, police, sanitary, and other ordinances and regulations not in conflict with general
laws. The Legislature, through the adoption of state statutes, prescribes what cities can and
cannot do; however, much discretion is left to the cities to define their own path.
The following city services are truly "necessary" in order to maintain the health and safety of the
City's citizens, and to comply with local obligations, duties, and requirements as set forth in
State law.
• Clean water
• Sewage disposal
• Garbage pick -up /Recycling
• Building inspection
• Community Planning /Planning Agency
• Street and sidewalk safety
• Fire prevention
• Police service
• Fire response
• Open meetings
• Preservation and maintenance of municipal records
• And some few other functions which I'm sure you'll think of.
Generally speaking, the following services are not "necessary" for the preservation of the health
and safety of the City's citizens nor are they considered local obligations, duties, or restrictions:
• Sports Center
• Community Center
• Animal Shelter
• Performing Arts Center
• Senior Center
• Swimming pools
• Community parks
• Recreation programs
• Farmers' Market
• Community landscaping
• Hiking /biking trails
• Playgrounds
• Graffiti abatement
• After School programs
• Community event support
• Economic Development
• Golf courses
• Ball fields
• Youth programs
• School Resource Officer
These types of facilities and programs generally emerge as community choices.
Consequently, there is only a partial relationship between "necessary" services and what we
actually do as a community. Much of what we do relates to our history as a community (when
you build a facility or infrastructure, you're also making the decision to operate it and maintain
it). What we do relates to choices made over the years to respond to citizen needs, to provide
better service and to pursue "quality of life" goals, for the community.
So while it's important for us to define our "core" services, that will not necessarily be
synonymous with services "necessary" for the preservation of the health and safety of the City's
citizens and /or mandated by state law.
CITY OF ROHNERT
PARK
2011 -12 BUDGET WORK SESSION
May 10, 2011
Budget Work Session Agenda
1. Fiscal overview
2. Discussion of critical issues
— Total Budget Structural Deficit
— Unfunded Liabilities
— Impacts of Current Economic Recession
— General Fund Budget FY 2010/11 Expenditures
— General Fund Cash Balances
— Sewer Fund Overview
— Redevelopment Agency Update
3. Discussion of proposed fiscal policies
1
Fiscal Status
• Where we are today
— Budget and structural deficit
— Unfunded liabilities
— Deteriorating infrastructure
• How we got here
— Lack of a long term fiscal plan
• Reactive versus proactive approach
— Lack of new long term revenue sources
— Lack of setting aside reserve funds to pay for escalating
personnel and operational costs
— Deferment of Capital Improvement Program
— State takeaways
Budget Definitions
• Liability
— Current or future monetary obligation that legally binds the City to pay a debt
• Unfunded Liability
— The amount by which the liabilities (debt) of a program exceeds the program
assets (income)
• Operating Budget
— The portion of the budget that pertains to day -to -day operations providing
basic governmental services
• Infrastructure
— The basic physical structures and facilities needed for the operation of a
community including roads, utilities (water, sewer and refuse)
• Structural Deficit
— A budget deficit that results from a long -term imbalance in income and
expenditures
• City Fleet
— City owned vehicles and equipment such as patrol cars, fire trucks, service
trucks, tractors, etc.
• Capital Improvements
— New construction or improvements that add value to an existing capital asset
either by lengthening its estimated useful life or increasing its service capacity
01
GENERAL FUND
STRUCTURAL DEFICIT
OPERATING BUDGET DEFICIT
$ 2.9M'
UNFUNDED LIABILITIES:
Infrastructure
$1049M
S 18.5M
Vehicles
S 7.3M
$ 0.5M
Retiree Medical
$ 44.9M
$ 2.5M
Accrued Leaves
$ 1.5M
$ N/A
TOTAL STRUCTURAL DEFICIT
$158.6M
$ 24.4M
I Removed $500K projected funding from Tribe
2Accrued leave consists of vacation and compensatory time
TOTAL
STRUCTURAL DEFICIT
OPERATING BUDGET DEFICIT
$ 2.9M'
UNFUNDED LIABILITIES:
Infrastructure
$104.9M
$ 18.5M
Vehicles
$ 8.5M
$ 0.6M
Water & Server
$ 167.8M
$ 12.OM
Retiree Medical
$ 44.9M
$ 2.5M
Accrued Leaves'
$ 1.5M
$ N/A
TOTAL STRUCTURAL DEFICIT
$327.6M
$ 36.5M
' Removed $500K projected funding from Tribe
2Accrued leave consists of vacation and compensatory time
5
6
3
City Facilities
Unfunded Liabilitii
(Future IOUs)
Physical Asset Maintenance
• Operating Cost
— Cleaning
— Handy -man tasks
— Graffiti Removal
• Major Maintenance Cost
— Re -roof
— Painting
— Equipment Replacement
L,
If We Fail to Maintain,
Rehabilitate and Replace
I-Q �r Af Y
14401AArION,
OR h5 7#15
P/1 f OF I EA WS
O'b7TIM;
Why We Care:
End of the vainbow
for future �nerations...
IN
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5
Staff Analysis of Unfunded Liabilities
(IOUs) for City Facilities
• Intended to quantify the size of the issue
• Based on reasonable estimates and industry
standards for asset life
• Estimates are considered order -of- magnitude,
good to within plus or minus 40%
6
Definitions
• Annual Shortfall
— Difference between what City spends and what it
should spend or set aside to maintain,
rehabilitate, or replace existing facilities.
—Amount needed to keep problem from getting
worse.
— ($12) million per year city -wide
— ($6) million per year General Fund
— ($3) million per year each Water & Sewer Funds
Definitions
• Accrued Unfunded Liability (Backlog)
— Total of past Annual Shortfalls over life of asset.
— Total backlog of maintenance, rehabilitation, or
replacement needs.
— ($273) million city -wide
— ($105) million General Fund
— ($86) million Water Fund
— ($82) million Sewer Fund
7
Definitions
• Annual Unfunded Liability (Catch -up)
— Amount needed to rehabilitate or replace an asset
by the end of its estimated useful life.
—Annual Shortfall plus a portion of Accrued
Unfunded Liability (Backlog)
— Funding at this level allows an asset to be replaced
or rehabilitated at the end of its life.
N.
All Facilities
Total Accrued Unfunded Liability (Backlog)
$160
_...
$145
$140
$120
..._........
$100
aa'
C
$80 :_
........
$69
..............
$47 3s
$40 ...
�... .... _ ..... _ .............
�\
$20 ..
......... ,. $12 ..__ ..................
Buildings Water & Sewer Streets & Drains Parks & Recreation
N.
Annual Unfunded Liability
(Catch-up)
• ($31) million per year total
• ($18) million per year General Fund
• ($7) million per year Water Fund
• ($5) million per year Sewer Fund
Summarv: Citv Facilitv IOUs (Millions)
Category
Liability
Description
Total
General Fund
Water
Sewer
Annual Shortfall
($3)
($2)
($1)
($0)
Buildings
Accrued Unfunded Liability
Backlog
($47)
($24)
($20)
($3)
Annual Unfunded Liability
Catch -up
($6)
($3)
($3)
($0)
Annual Shortfall
($5)
$0
($2)
($3)
Water &
Sewer
Accrued Unfunded Liability
Backlog
($145)
$0
($65)
($80)
Annual Unfunded Liability
Catch -up
($9)
$0
($4)
($5)
Annual Shortfall
($4)
($4)
$0
$0
Streets &
Drains
Accrued Unfunded Liability
Backlog
($69)
($69)
$0
$0
Annual Unfunded Liability
Catch -up
($14)
($14)
$0
$0
Annual Shortfall
($1)
($1)
$0
$0
Parks &
Recreation
Accrued Unfunded Liability
Backlog
($12)
($12)
$0
$0
Annual Unfunded Liability
Catch -up
($2)
($2)
$0
$0
Annual Shortfall
($12)
($6)
($3)
($3)
Total
Accrued Unfunded Liability
Backlog
($273)
($105)
($86)
($82)
Annual Unfunded Liability
Catch -up
($31)
($18)
($7)
($5)
9
10
General Fund Facilities
General Fund Facilities
Annual Unfunded Liabilities
$20.0
$18.0
-_
Park & _-
Recreation
$16.0
v, $14.0
$23.2
C
0
$12.0
_.._
a
s
$20
$18.5
Streets &
o $10.0
Drains ............... -
v
Parks
$8.0
c
Parks &
Q $6.0
Recreation -
-. .....
$4.0
__'
Streets & Drains
m �
J
$2.0
t
Buildings
Buildings
$10
Annual Shortfall Annual Unfunded
Liability (Catch -up)
10
General Fund Facilities
Future Annual Liability if No Change (Catch -up)
$25
$23.2
$21.1
a
s
$20
$18.5
$.19:2 -.....
...................
Parks
$15
__'
m �
J
t
a
v
Streets
$10
.. _._..._._
c
$5
Buildings
2011
2012
2014
2016
10
Buildings
Total Unfunded Liabilities (Backlog)
$25
$20 ` \
2 s
—_ $15 i j3 3
_.........
� vie t
O \ t
P 1
i
U
U
General Fund Water Sewer
11
12
Streets & Drains
Sewer
Annual Liabilities
Net Annual
Shortfall
Annual Unfunded Liability (Catch -up)
$3.0
$25
e
$2.5
N
o
$2.0
!...
$1.5
$20
....... /2 ..
G
..
m
..............
f
$15
a
$1.0
.._ r f
......
.......
N
$10
.-
_.....
$0.5 :__
s
$5
m`,
�y
"s
7 .
f
NSA,
Street
Storm Drains Sidewalks Curb and
Pipelines
Forcemains
Medium Large Services Manholes Buildings
Pavement
Gutter
Services
12
Streets & Drains
Total Unfunded Liabilities (Backlog)
$30
$25
e
__.....
�
Q
$20
....... /2 ..
G
..... ... .................
............
..............
$15
0
.a
N
$10
.-
_.....
$5
m`,
$
7 .
_. I��,... _......
Street
Storm Drains Sidewalks Curb and
Street Lights
Traffic Signals
Pavement
Gutter
12
13
PAVEMENT LIFE CYCLE
PAVEMENT
Condition RECOMMENDED TREATMENT
EXCELLENT
PREVENTATIVE MAINTENANCE
($5 1SQ. YD.)
VERY GOOD
a
40%
DROP IN
QUALITY
REHABILITATION
75% OF
PALIFEENT (�$3'1 /SQ. YO.)
VV EM
GOOD
PARTIAL RECONSTRUCTION
($58 1SQ. YD.)
40%
POOR
DROP IN
QUALITY FULL RECONSTRUCTION
12% ($1 0015Q. YD.)
OF LIFE Q-
VERY POOR
4 8 12 16 20
Pavement Age (Years)
13
Conclusions
• Our public facilities are part of what makes
Rohnert Park special.
• Problem is not unique to Rohnert Park or city
government.
• Costs are enormous and growing each year.
• City facilities are assets and also liabilities.
• Problem will not be solved with one step.
Conclusions
• First step is identifying problem today.
• Next step is getting operating budget in
balance.
• Then start funding Annual Shortfall.
• Lastly, start working on backlog.
14
Recommendation
- Conduct formal study using outside
professionals to evaluate unfunded facility
liabilities to better understand problem.
CITY FLEET - Summary
AGE rs) Number of Vehicles Percent of Fleet
20+ 14 10%
11 -19 50 32%
1 -10 87 58%
TOTAL: 151
15
CITY FLEET - Summary
Department General Types of Vehicles
Administration
Community Services Passenger vehicles, light -duty tricks, vans
Development Services
Ladder truck, pump trucks, emergence /hazmat
Fire vehicle, light trucks, utility vehicles
Police
Interceptors, patrol motorcycles, utility vehicles, light-
duty trucks
Construction /heavy maintenance vehicles, backhoes,
Public `y/orks mowers, sewer hydro -vac, heavy -duty utility trucks,
dump trucks, light -duty trucks
31
CITY FLEET - Unfunded Liabilities
Fleet Summary
49 vehicles beyond useful service life
62 vehicles will exceed their useful service
life within the next 5 years
— 40 anticipated future replacements
Available Set Aside Replacement Funds (cash)
Total Estimated
Replacement
Cost ($ M)
$2.2
$2.9 (accrued & future liability)
$3.4 (beyond 5 years) — fidzure It'abAi),
$0.0
Total Accrued & Future Unfunded Liability: $$,5M ( to replace all vehicles)
16
CITY FLEET — Required Total Annual Depreciation
Wbat we should be paying each year:
Fund Annual Depreciation (s /yr)
General Fund 505,000
Water 51,000
Sewer 29,500
Total Annual Depreciation: $585,500
-Based on maintaining current fleet of 151 vehicles
CITY FLEET — Replacement Practices
Vehicles replaced/ funded:
- On an as- needed basis
- Typically postponed
- Kept in service beyond useful life
- No set -aside funding (depreciation)
- Funded through appropriation in
operations budget (pay -as- you -go)
17
CITY FLEET — Replacement Practices
Problems:
- Excessive (and growing) maintenance costs
- Legal requirements /mandates
- Diminished reliability
THESE PROBLEMS ARE COMPOUNDING IN NATURE
CITY FLEET — Industry Standards Best Practices
A life -cycle approach:
- Consider replacement costs upon purchase
- Fund replacements incrementally over life -cycle
- Purchase replacements from established capital fund
- Replace when maintenance costs > vehicle value
IN
Vehicle Replacement Best Practices
Vehicle Value
i nce > value
(z 2 Yc f City vehicles)
I
I
1
1
I
Maintenance Cost 1
I
*Ideal Replacement Time Time
'Varies with vehicle Jae & usage
CITY FLEET — Recommendations
1. Establish VEHICLE REPLACEMENT FUND
2. Each year: fund replacement (depreciation) of all new
vehicles
3. As possible: fund replacement of all vehicles (< 5 yrs)
4. Continue "Pay /Go" system for older vehicles (> 5 yrs)
5. Surplus retired vehicles (remove from fleet)
19
CITY FLEET — Recommendations
VEHICLE REPLACEMENT FUND
How it works...
Vehicle Capital
Replacement Fund
Operating
Budget
Revenue
4ee - Annual Depreciation
Revenue et from departments
City Departments
,ea c1�lepis
aee'a Vehicle
•
A „a�QT
Expense ense EY ense Purchases
- Vehicle Replacement
CITY FLEET— Recommendations
VEHICLE REPLACEMENT FUND
DIFFERENCE
2tl0910 2010 -11 201112 FROM
ACTUAL ACTUAL BUDGET ACTUAL DIFFERENCE
REVENUES
!rte++ut Income
t�;pa+ ttntl Frays {IfeltlYU'1:ltlonj
.�n.lKe FI�?s
TOTAL REVENUES
EXPENSES BY DEPARTMENT
r n unlry Sees
(teaealion ^rcgrams
it C-I”
[kvel+ga'Iwm Servicrs
CIA h rq UttN.
Ervia�e!aing
Pubac Sotery
T'OYM
(IrP.
MaI1.0 SYI[�Irr
Pubtic iNm45
:)!$fn1CV5
1,'Uti; +rte;
TOTAL EXPENSES
RESULTING GAIN (LOSS)
VEHICLEIEQUIPMENT REPLACEMENTS - FY 2011 12
Department Purchase Cost
Puh41: ?1?l Aty (Fi-
PuhHC Solely (Police)
PuI>5c lq<asv<(GUlcual S¢rvrtes)
:ere'rre
F'uoUc Wales
TlvU HS)
venue Ti +e
TOTAL PURCHASES
20
CITY FLEET — Recommendations
Depreciation Methodology
A Practical Example:
- New vehicle = $20,000
- Life expectancy = 15 years
- Future replacement cost = $31,200
(3% inflationary index)
- Annual depreciation = $2,080 /yr
Note — life expectancy varies by vehicle type and use
21
CITY FLEET — Recommendations
How We Could Get Caught Up -
A phased approach with all existing vehicles
49 vehicles fully depreciated
62 vehicles > 5 years old
40 vehicles < 5 years old (newer)
Continue pay -as- you -go $5.1M
(accrued liability)
Fund annual depreciation (as possible)
General Fund $150,000 /yr
Water - $24,500/yr
Sewer - $29,400/yr
TOTAL ANNUAL DEPRECIATION: $203,900/yr
* ** Note — this value will increase as older vehicles are replaced through the "Pav /Go" system
CITY FLEET — Recommendations
What we should do beginning 201112012:
- Establish a Vehicle Replacement Fund
- Implement depreciation schedule
- Apply depreciation methodology
- Implement phased approach with newer
existing vehicles
22
ACCRUED LEAVE BALANCES
• VACATION @ 6/30/10: $1,338,971
• COMP TIME @ 3/31/11: $ 128,971
TOTAL: $1,467,942
ACCRUED LEAVE BALANCES
• VACATION *6/30/10: $1,338,971
• COMP TIME @ 3/31/11: $ 128,971
TOTAL: $1,467,942
45
46
23
RETIREE MEDICAL
UNFUNDED LIABILITY
UNFUNDED $5.3M $3.OM $44.9M $53.2M
LIABILITY
ANNUAL ' $0.4M $0.3M $4.OM $4.7M
REQUIRED
CONTRIBUTION
PROJECTED $0.4M $0.3M $15M $2.2M
CONTRIBUTION
UNFUNDED $ - $ - ($2.5M) ($2.5M)
RETIREE MEDICAL
ACTUAL PAY -GO COST
1,800,000 154% INCREASE
1,600,000 IN SEVEN YEARS
1,400,000
1,200,000 -
1,000,000 945,948 988,606
800,000 6 5 704,377 723,303
26,66
600,000
400,000
200,000
1,589,047
1,497,468
1,291,472
2004 2005 2006 2007 2008 2009 2010 2011
47
48
24
2almert Park — General Pund Pr'efunding Study — Chart 2
Projected ('01111-ibution Amounts — July 1, 2010 Yale .Ition
($'s In thnusandc)
30:IS 42(X) 100 u
-Full prJunding contributions: 7.511% di t rate
- Phase-in rmntribulions: Discunnl rak, graded from 4.23% to 7.50% over phase-in period.
" Payments in 1st 5 ye: = benefit pay., ots + SIOOK in year 1, S300K in years 2 - 5
Pm• Benefit
?0 -year Phase -in
FIT
as Duc
(5 -vnu s Fixed')
15 -yt_rr PFrna-in
10 -near Phase-in
Full PrefundinR
^_011
$ 1,20E
:S 1,201)
$ I,'6U
S 1.200
$ 1,200 -
2012
1,20(.1
1,300
1.400
].4GU
3,IA19
2013
1,ApU
1,,(,0
1,(410
1, ?fli)
3,(Pl0
'_014
1,500
1,800
I.V)o
2�JGCi
3,14)Q
200
1500
I,R00
" IO
2,300
3P)0
'016
I,H)Q
2,400
2,600
3X01
2in0
2,100
3ltlti
3,3ii1
3,(�)il
2,SyJ0
2025
(y)
.Ii XI(i
' V0.1
N
'Ylu
3,300
=4 201;
3,'110
3,200
2'(0)
2(135
3400
3 ^00
3,1(10
', iAi
2,4110
2218
1,100
3,40.1
2,'00
2,100
21)39
'1.1cil
900
200
0
O
30:IS 42(X) 100 u
-Full prJunding contributions: 7.511% di t rate
- Phase-in rmntribulions: Discunnl rak, graded from 4.23% to 7.50% over phase-in period.
" Payments in 1st 5 ye: = benefit pay., ots + SIOOK in year 1, S300K in years 2 - 5
25
Kohnert Park General Fund
Prefunding Study - Chart 1
Unfunded Actuarial Accrued Liability Comparison
so
70
60
n
50
0
30
20
10
N
N N r5 ('�J N N N N N N N lV N N N t rat
l rJ
Fiscal Year Fndfng
—No Pre fundin g 2� t Year l_. ise -m 15 Ycar _Ilia _....
10 Y e rr Phase -it FtJll Pre fxttdute
25
26
27
gm
EXPENDITURES BY CATEGORY
FY 2010 -11 BUDGET
OTHER GENERAL
RECREATION /PAC
6.8% GOVERNMENT
7.0/
PUBLIC
WORKSIPARKS
ys
\i � 3+ +,V � •j
PUBLIC SAFETY
54.2
Ell
68
11. 11 11: 11•
1 1 1 �
� 1
gm
EXPENDITURES BY CATEGORY
FY 2010 -11 BUDGET
OTHER GENERAL
RECREATION /PAC
6.8% GOVERNMENT
7.0/
PUBLIC
WORKSIPARKS
ys
\i � 3+ +,V � •j
PUBLIC SAFETY
54.2
68
gm
DEPARTMENT EXPENSE
COMPARISON 2008 VS. 2011
25,000,000
19,664,828
20,000,000
- __
,;
" 15 535,000
15,000,000
10,000,000
9,073,105
7 291,065
\�
5,000,000
>
t� �\
�� Z 976
555
3,273,860
\\ \�
K
2,236,786
1,993,324
0
--
GENERALGOVT
PUBLICSAFETY
PUBLIC RECREATION/PAC
WORKS /PARKS
$7.9M REDUCTION
IN EXPENDITURES;
69
STAFFING LEVEL
200
190 1 190.75 """ REDUCED STAFFING
88.5 LEVEL BYTHIRTY -SEVEN
7.5 AUTHORIZED POSITIONS
{r
180 181 5
~ 176.5
170 1 ACTUAL
-0-AUTHORIZED
164
160
153.7.5 $M
150 152.75
140
2006 2007 2008 2009 2010 2011
70
35
GENERAL FUND RESERVE
■ GFOA RECOMMENDED MINIMUM LEVEL OF
RESERVE IS 10% OF TOTAL EXPENDITURES
■ THUS, CITY SHOULD HAVE $3M SET ASIDE FOR
ECONOMIC SWINGS AND CONTINGENCIES
■ THE CITY HAS DEPLETED THE GENERAL FUND
RESERVE
■ THE CITY HAS $3.9M IN GENERAL FUND CASH
71
SEWER OPERATING FUND
■ AT THIS TIME:
Annual Revenue: $ 9.6 Million
Annual Expense: $12.0 Million
Annual Operating Deficit: (S 2.4 Million)
■ AT THIS RATE, SEWER OPERATING FUND WILL
BE DEPLETED IN EARLY 2013
■ THE CITY COUNCIL REVIEWED THE PROPOSED
SEWER RATE INCREASE ON MARCH 8, 2011
72
36
SEWER OPERATING FUND
■ THE PUBLIC HEARING ON THE SEWER RATE
INCREASE IS SCHEDULED FOR MAY 10, 2011
■ IF LESS THAN A MAJORITY PROTEST, THE NEW
RATES WOULD GO INTO EFFECT JULY 1, 2011
■ THE SEWER OPERATING FUND WOULD THEN
BE SELF - SUPPORTING AND THE CITY'S SEWER
OPERATION WOULD BE SUSTAINABLE
73
STATE PROPOSAL TO ELIMINATE
REDEVELOPMENT AGENCIES
• Focus is shifting from elimination to reform
• Bills which include elimination of redevelopment are
still available for consideration
• If redevelopment is eliminated ...
— Reimbursement Agreement may be nullified
— Property Transfers may be invalidated
— General Fund could be required to reimburse state
for expenditures if legislation retroactive
37
IMPLICATIONS OF
REDEVELOPMENT ELIMINATION
Critical funding will be lost!
✓Capital projects will not go forward
✓Housing projects will be postponed
✓Funding in support of business and tourism will be
lost
,/Housing and homeless prevention programs will be
at risk
v/ General fund will not be reimbursed for
administrative costs
STATUS OF REDEVELOPMENT
AGENCY
• State take -away of $845,908 on May 10th
• CDC funds available to fund interfund obligations
• CDC has met its bonded debt service obligations
• Redevelopment Fund balance projected to be $1.2
million
• Availability of bond funds for projects and
programs:
— $ 4.9 million in redevelopment bond funds
-- $13.3 in housing bond funds
.J
CITY OF ROHNERT PARK
FISCAL HEALTH PLAN
FISCAL HEALH PLAN
OBJECTIVE
Achieve strong financial
condition &fiscal sustainability
39
SOLVENCY ACTION PLAN
• Cash solvency
— Retain sufficient liquid cash for short term
expenditures
• Budget solvency
—Reduce and /or eliminate structural budget
deficit
—Balance operational budget - expenditures must
not exceed revenues over normal budget period
SOLVENCY ACTION PLAN
• Longterm solvency
— Adopt fiscal policies that commit City to annually
set aside monies to build up reserves
— Commit monies to fund unfunded liabilities such
as retiree medical
,ff
SOLVENCY ACTION PLAN
• Service level solvency
— Fund replacement of capital equipment and
facilities
• Fund annual replacement of existing equipment &
facilities
• Fund what has been deferred
— Fund infrastructure
• hnplement and fund pavement management system
• Replace aging utilities
FISCAL STRATEGY
• Address the structural deficit — expenditures
greater than revenues
• Identify and create new long term revenue
sources
• Adopt fiscal plan and policies
• Identify short and long term goals and priorities
• Establish restricted reserve funds to pay for
deferred maintenance and capital
improvements
41
PROPOSED FISCAL POLICIES
Short Term Goals & Priorities
• Fund essential services
• Reduce operational budget
—Explore shared resource opportunities
• Identify and create new revenue sources
— Survey other municipalities & implement
successful measures
PROPOSED FISCAL POLICIES
Short Term Goals & Priorities
• Fund annual retiree medical contribution
• Fully fund reserves - using phased approach
over the course of the next several years
• Achieve balanced budget
• Move toward sustainable
benefits programs
42
PROPOSED FISCAL POLICIES
Long Term Goals & Priorities
• Reserves are fully funded
— 10 year process
• Sustainable employee benefit programs in
place
• Unfunded liabilities are fully funded
— annual and deferred
• Capital equipment and facilities replacement
program in place and underway
PROPOSED RESTRICTED RESERVE
FUNDS
• General Fund
• Capital Replacement
— (e.g., Vehicles, Equipment)
• Facility Maintenance
— (e.g., Buildings)
• Infrastructure
— (e.g., streets, parks)
43
PROPOSED POLICY STRUCTURE
• If at year end there is an operating surplus
that exceeds $500,000, allocate excess funds
as follows;
— 50% carryover to contingency fund
— 40% distributed to restricted reserve funds
• 20% General Fund
• 10% Capital Replacement
• 10% Facility Maintenance
• 10% Infrastructure
CRITERIA FOR UTILIZATION OF
RESTRICTED RESERVE FUNDS
• No borrowing from restricted reserve funds except for
extraordinary circumstances
• Triggers for borrowing of restricted funds
— Natural or human -made disasters
— State budget takeaways
— Large, unexpected costs
— Economic downturns
• Utilization requires 4 /5ths Council
vote
• Funds shall be replenished as follows;
— 50% following fiscal year
— 50% second fiscal year
..
CITY OF ROHNERT PARK
CITY ADMINISTRATION DIVISION
DIVISION SERVICES MODEL
CITY MANAGER
♦ MANDATED
• Serve as administrative head of the City under
the direction and control of the City Council
• Implement all policy decisions and directive of
the City Council
• Enforce all laws and ordinances of the City
Ensure all franchises, contracts, permits and
privileges granted by the city council are
faithfully observed
• Appoint and oversee all executive management
positions
CORE
• Coordinate the preparation of agenda for City
Council meetings
• In consultation with City Council, develop City's annual budget
• Oversees preparation of City's long term capital improvement plans and financing strategy
• Develop and manage programs to assure economic development and financial vitality of City
• Represent City Council with employees, community groups, individual members of the public,
and other governmental agencies
• Manage all aspects of City's personnel function
• Oversee negotiation and management of service contracts and leasing agreements
• Serve as City's representative on a variety of boards and commissions
♦ DISCRETIONARY
o City Manager is not performing discretionary functions
ALTERNATIVE SERVICES DELIVERY OPTIONS
• Freeze Assistant City Manager (ACM) position.
• Hire dedicated economic development professional utilizing savings from frozen ACM position.
• Reorganize administrative support to City Manager through creation of temporary Management
Analyst.
• Continue to explore opportunities for shared services among municipalities.
• Establish partnerships with non - profits to provide alternatives for delivery of social services.
• Evaluate City operations to maximize delivery of City services.
MAJOR TASKS COMPLETED IN FISCAL YEAR 2010/2011
• Restructured City Administration Division
• Established Economic Development Plan
• Recruitment for Economic Development Manager
• Formation of City of Rohnert Park Foundation
✓ Initiated dialogue with City Manager's group regarding shared services
✓ Issued Request for Proposals for Strategic Plan
✓ Established Social Media Policy
✓ Launched social media presence
✓ Improved communication with community (i.e., social media)
✓ Established Sewer Rate Fund Stakeholder Group to conduct community outreach on sewer issue
✓ Developed Sewer Rate Plan
✓ Adopted budget by July I" that further reduces expenditures
MAJOR GOALS FOR FISCAL YEAR 2011/2012
Goal 1: Implement Newly Adopted Budget
City Manager will implement newly adopted budget, including a restored Capital Improvement Program to
address the City's needs for public facilities and infrastructure repair and rehabilitation.
Goal 2: Develop and Implement Long -term Strategic Plan
City Manager will work with qualified consultant to develop a long -term Strategic Plan. City Manager will
implement and follow -up on the decisions coming out of the City's Strategic Plan exercise.
Goal 3: Develop Long -Term Fiscal Policies
City Manager will develop long -term fiscal policies, identify cost - saving measures to reduce /repair structural
deficit, and will develop financial plan to fund unfunded liabilities.
Goal 4: Develop City Marketing Program
The City Manager will work with the Economic Development and Redevelopment Managers to develop a City
marketing program.
Goal 5: Pursue sustainable new revenue sources and continue to reduce costs
Goal 6: Execute Economic Development Plan objectives
Goal 7: Evaluate City operations for improved efficiencies and cost savings that still maintain maximum level of
services.
Goal 8: Develop and Implement Cost Allocation System
City Manager will work with relevant staff to create a cost allocation system for accurately tracking costs
associated with the provision of services to citizens and among City departments /divisions.
Goal 9: Address Unfunded Liabilities
City Manager will take steps to address the issue of the City's unfunded liabilities, particularly Retiree Health
Care.
Goal 10: Implement Labor Agreements
City Manager will implement the agreements reached with the City's labor groups.
Goal 11: Pursue Cooperative Service Agreements
City Manager will continue to pursue cooperative agreements with other agencies to control City costs.
Goal 12: Enhance Communication with Community
City Manager will develop City /Budget newsletter
CITY CLERK
♦ MANDATED
• Serve as Clerk of the Council and Secretary to the
Community Development Commission and
Rohnert Park Financing Authority
• Record and maintain proceedings of Council
meetings
• Attest, index, and file resolutions /ordinances
• Post and publish legal notices
• Act as custodian of city records and provide
certification of copies
• Administer Oaths of Office
• Act as local elections official
• Serve as filing officer and filing official under the
Political Reform Act
o Maintain Local Appointments List under the
Maddy Act (boards and commissions)
o Serve as Secretary to the City of Rohnert Park Foundation
♦ CORE
• Assist City Manager with preparation and posting of City Council, Community and Rohnert
Park Financing Authority agendas in compliance with the Brown Act
• Prepare Council Chamber and coordinate presentations for meetings
• Develop and maintain records management program
• Notarize city documents
• Respond to staff and citizen inquiries
• Coordinate and log responses to requests for public records under Public Records Act
• Maintain and distribute updates to the Municipal Code
• Open competitive bids
• Accept tort claims, subpoenas, and other legal documents for service
• Provide administrative support to City Attorney's Office
♦ DISCRETIONARY
• Oversee and maintain city website
• Serve as public information officer
• Serve as secretary to the Mobile Home Parks Rent Appeals Board
• Process film permit applications
ALTERNATIVE SERVICES DELIVERY OPTIONS
• Freeze Deputy City Clerk position and reorganize administrative support to the City Clerk through
creation of a part-time Administrative Assistant and a part-time Technical Advisor
• Coordinate with another agency to operate records management center
• Utilize interns to develop and maintain electronic recordkeeping and document imaging systems
• Utilize volunteers to perform routine clerical duties
REVENUE OPPORTUNITIES
• Provide notary services to the public at statutory fee of $10 /signature
• Review current fee schedule for potential increases to miscellaneous fees and costs such as copy charges
and taxicab application fees
MAJOR TASKS COMPLETED IN FISCAL YEAR 2010/2011
✓ Conducted November 2010 Election
✓ Amended Conflict of Interest Code
✓ Amended City Council Protocols
MAJOR GOALS FOR FISCAL YEAR 2011/2012
Goal 1: Revise Agenda Process and Templates
The City Clerk's Office will develop a more efficient workflow for agenda items and create electronic templates
for greater ease of use and consistency among departments.
Goal 2: Develop and Implement Agreement Routing and Approval Process
The City Clerk's Office will develop an efficient agreement routing and approval process, which will include
review of all agreements by the City Manager, City Attorney, City Clerk, and Purchasing Agent prior to their
approval.
Goal 3: Develop City Council and Administrative Policy Manuals
The City Clerk's Office will develop a current and comprehensive City Council Policy Manual, which will be
made available online to staff and members of the public. The City Clerk will also develop an Administrative
Policy Manual, which will be made available to City staff via the citywide Intranet.
Goal 4: Develop Citywide Fee Schedule
The City Clerk's Office in collaboration with the Finance Department will update the comprehensive Citywide
Fee Schedule, which will be made available online to staff and members of the public.
ECONOMIC DEVELOPMENT
® MANDATED
o Achieve objectives of the Economic
Development/
Job Creation Action Plan, as authorized by
City Council
0 CORE
o Address overall objective — Improve local
MAJOR GOALS FOR FISCAL YEAR 2011/2012
Goal 1: Develop and implement focused plan objectives and specific work programs.
Goal 2: Implement new Facade Improvement and Commercial Loan Program.
Goal 3: Work with State Farm on creative reuse of property.
Goal 4: Work with Sonoma Mountain Business Cluster to locate company graduates" in City.
Goal 5: Reduce vacancy rates for commercial properties.
Goal 6: Create or bring new jobs into City.
Goal 7: Meet and work with propegy owners to facilitate business retention and attraction.
Goal 8: Establish partnership with SSU and local businesses to create an economic partnership.
COMMUNITY DEVELOPMENT COMMISSION
HOUSING & REDEVELOPMENT
DIVISION SERVICES MODEL
♦ MANDATED
0
• Prepare annual California Department of
Housing & Community Development Report
• Prepare & implement Community
Development Commission Five Year
Implementation Plan
• Maintain affordable housing database
• Submit annual reports for programs funded
through state and federal resources
• Staff Rohnert Park Rent Appeals Board
CORE
• Assist organizations that promote economic
development
• Act as Project Manager on Housing and Redevelopment projects
• Work with community service organizations serving Rohnert Park's low income residents
• Make affordable housing rehabilitation loans available to income qualified residents
• Work with potential buyers and real estate agents to preserve affordable units
• Monitor compliance with contractual obligations to provide affordable units
• Staff Sonoma County Community Development Commission Technical Advisory Committee
• Provide referrals for housing, food and shelter
• Administer budget and bond portfolio
• Search for and obtain grant funding
• Produce annual affordable housing income and maximum rent guidelines
® DISCRETIONARY
• Facilitate acquisition of properties for redevelopmentand the creation of affordable housing
• Assist underwriter and bond counsel with issuing bonds to fund projects and programs
• Provide financial assistance to assist in the development of affordable housing
• Develop & launch new programs that promote economic development and affordable housing
• Participate in annual homeless count administered by the Sonoma County Community
Development Commission
ALTERNATIVE SERVICES DELIVERY OPTIONS
• Enter into a service agreement with the County of Sonoma to administer a new Fagade
Improvement and Commercial Rehabilitation Loan Program
• Look for opportunities to partner with other jurisdictions to provide for other CDC programs and
services
• Outsource low- moderate income housing monitoring
REVENUE OPPORTUNITIES
• Implementation of a Fagade Improvement and Commercial Rehabilitation Loan Program will
generate sales tax and other City revenues
MAJOR TASKS COMPLETED IN FISCAL YEAR 2010/2011
✓ Commercial Area Improvement Pilot Project
✓ Grant for $888,000 to the Sonoma Mountain Business Cluster
✓ Agreement with the Sonoma County Tourism Bureau for exclusive marketing services
✓ Agreement with the Rohnert Park Chamber of Commerce for Professional Services associated with
Chamber operations
✓ Feasibility Study for Avram/Southwest properties
✓ Amended and Restated Lease with the City of Rohnert Park for 6800 Hunter Drive
✓ Public Improvements and Affordable Housing Reimbursement Agreement with City of Rohnert Park
✓ Real Property Transfer and Cooperative Agreement with City of Rohnert Park for certain real property
owned by the CDC
MAJOR GOALS FOR FISCAL YEAR 2011/2012
Goal 1: Promote Economic Development and Create Jobs through Implementation of CDC Programs
A) Assist the City Manager and Economic Development Manager in the implementation of the
City /CDC Economic Development /Job Creation Action Plan.
• Determine creative ways for CDC programs and funding to assist in these efforts.
• Use elements of the CDC Five Year Implementation Plan to strengthen City's economic
development.
B) Administration of the Facade Improvement and Commercial Rehabilitation Loan Program.
The CDC will offer below market interest rate loans to business and commercial property owners in the
Redevelopment Project Area in order to:
• Increase business retention, expansion or attraction efforts
• Decrease vacancies or increase jobs
• Eliminate physical blight or improve economic conditions in the Redevelopment Project Area
Goal 2: Complete Redevelopment Feasibility of Avram and Southwest Sites
The CDC is exploring options to develop two sites. The first site is comprised of the former City Hall (6750
Commerce Boulevard) and 100 and 120 Avram Avenue. The second site is located at 435 Southwest
Boulevard, the former Southwest fire station.
Goal 3: Engage in Competitive Bid Process and Award Contract to Redevelop Avram and Southwest Sites
Following completion of the Redevelopment Feasibility Study, staff will develop a Request for Proposals and
initiate a competitive bid process for the purpose of selecting a qualified developer and awarding a contract to
develop the aforementioned sites.
Goal 4: Initiate & Complete Recreational and Community Facilities Feasibility Study
The CDC wishes to explore opportunities to improve recreational and community facilities serving the Rohnert
Park Redevelopment Project Area.
Goal 5: Initiate Request for Qualifications to solicit qualified developers for Recreational & Community Facilit
Improvements
The CDC will seek qualified developers to develop recreational and community facility improvements.
HUMAN RESOURCES
♦ MANDATED
• Ensure compliance with state - mandated
requirements
• Administer City's labor and employee relations
program
• Administer employee leaves
• Administer compensation and benefits
• Administer hiring processes
•
♦ DISCRETIONARY
• Administer fringe benefits programs for employees
• General risk management policy formulation, training and medical exam notification
• Act as the City's California Public Employees' Retirement System elections official
• Perform a variety of HR and compensation administration services for Redwood Empire
Municipal Insurance Fund (REMIF)
ALTERNATIVE SERVICES DELIVERY OPTIONS
• Contract with a third -party administrator for fringe benefits administration
• Outsource recruitment and selection processes to consultants on an individual, as- needed basis
• Outsource classification and compensation structure studies to consultants on an individual, as- needed
basis
• Contract for Family Medical Leave Act and California Family Rights Act leave administration services
• Outsource personnel investigations to consultants on an as- needed basis
MAJOR TASKS COMPLETED IN FISCAL YEAR 2010/2011
✓ Finalized, adopted and published language for all MOA's and Outlines for 2009 -2011
✓ Consolidated supervision and management positions in Finance and Performing Arts Center, resulting
in reduction of personnel costs
✓ Established new code enforcement positions per City Council request
✓ Communicated and implemented the City's "Fraud in the Workplace" policy (Resolution 2009 -135)
✓ Established city -wide "acting pay" policies
✓ Initiated grievance procedure review and update with bargaining units
✓ Issued Request for Proposal for a Chief Labor Negotiator; successfully obtained these services
✓ Established an internship program, and filled several intern positions
✓ Developed and disseminated an Injury and Illness Prevention Program (IIPP) for the City
✓ Provided guidance and documentation for the adoption of an amendment to the City's Public Employees
Retirement System contract, implementing a negotiated change in retirement benefits for new hires
effective July 1, 2011
MAJOR GOALS FOR FISCAL YEAR 2011/2012
Goal 1: Deploy FLSA - Compliant Timesheet System
Human Resources will work with City staff to develop and deploy FLSA - compliant timesheet system to
improve tracking of employee hours and accrued/paid leave.
Goal 2: Update and Automate Performance Evaluation Syste
Human Resources will work with City staff to develop and deploy an automated performance evaluation module
fro.. current HRIS vendor NeoGOV to improve tracking of employee performance evaluations, increase
supervisory efficiency in producing evaluations, and ensure proper administration of merit increases.
Goal 3: Develop and Implement a Comprehensive Medical Leave Management Policy
Human Resources will work with City staff to develop and implement a medical leave management policy that
is consistent citywide, compliant with current legal requirements, and user - friendly to supervisors and
employees.
Goal 4: Decentralize Some Hiring Procedures
Human Resources will work with City staff to develop and deploy streamlined, collaboratively - administered
hiring procedures that meet both legal guidelines and hiring time frames.
Goal 5: Establish Policy and Procedure for the Use of Temporary Employees
Human Resources will work with City staff to develop and implement policies for the appropriate hiring, use,
and retention of temporary employees.
5/6/2011
CITY ADMINISTRATION
5/6/2011
CITY MANAGER
CITY MANAGER
MANDATED SERVICES
❑ Serve as administrative head of City under
direction and control of City Council
❑ Implement all policy decisions and directives
of the City Council
❑ Enforce all laws and ordinances of the City
❑ Ensure all franchises, contracts, permits and
privileges granted by City Council are
faithfully observed
MANDATED SERVICES
❑ Appoint and oversee all executive
management positions
❑ Administer City Injury and Illness Prevention
Program
❑ Perform such other duties and exercise such
other powers as may be delegated by
ordinance or resolution or other action by City
Council
5/6/2011
3
CITY MANAGER
CORE SERVICES
❑ Coordinate the preparation of agendas for City
Council meetings
❑ In consultation with City Council, develop
City's annual budget
❑ Oversee preparation of City's long -term capital
improvement plans and financing strategy
❑ Develop and manage programs to assure
economic development and financial vitality of
City
5/6/2011
4
CORE SERVICES
❑ Represent the City Council with employees,
community groups, individual members of the
public, and other governmental agencies
❑ Manage all aspects of City's personnel
function
• Oversee negotiation and management of
service contracts and leasing agreements
• Serve as City's representative on variety of
boards and commissions
ALTERNATIVE SERVICE
DELIVERY OPTIONS
❑Freeze Assistant City Manager position
❑Hire dedicated economic development
professional utilizing savings from frozen
Assistant City Manager position
❑Reorganize administrative support to City
Manager through creation of temporary
Management Analyst
5/6/2011
61
ALTERNATIVE SERVICE
DELIVERY OPTIONS
❑ Continue to explore opportunities for shared
services
❑Establish partnerships with non - profits to
provide alternatives for delivery of social
services
❑Evaluate City operations to maximize
delivery of City services
MAJOR TASKS COMPLETED IN
FISCAL YEAR 2010/2011
• Restructured City Administration Division
• Established Economic Development Plan
❑ Recruitment for Economic Development
Manager
• Formation of City of Rohnert Park Foundation
• Initiated dialogue with City Manager's group
regarding shared services
5/6/2011
R
MAJOR TASKS COMPLETED
❑ Issued Request for Proposals for Strategic
Plan
❑ Established Social Media Policy
❑ Launched social media presence
❑ Improved communication with community
(i.e., social media)
MAJOR TASKS COMPLETED
❑ Established Sewer Rate Fund Stakeholder
Group to conduct community outreach on
sewer issue
❑ Developed Sewer Rate Plan
❑ Adopted budget by July 1ST that further
reduces expenditures
5/6/2011
MAJOR GOALS FOR FISCAL
YEAR 2011/2012
• Implement Newly Adopted Budget
• Develop and implement long -term Strategic
Plan
• Develop long -term fiscal policies
• Develop City Marketing Program
• Pursue sustainable new revenue sources and
continue to reduce costs
❑ Execute. Economic Development Plan
objectives
MAJOR GOALS FOR FISCAL
YEAR 2011/2012
❑ Evaluate City operations for improved
efficiencies and cost savings that still maintain
maximum level of services
❑ Develop and Implement Cost Allocation
System
• Address Unfunded Liabilities
• Implement Labor Agreements
• Pursue Cooperative Service Agreements
• Enhance Communication with Community
5/6/2011
:
5/6/2011
CITY CLERK
CITY CLERK
MANDATED SERVICES
❑ Serve as Clerk of the Council and Secretary to
the Community Development Commission
and Rohnert Park Financing Authority
❑ Record and maintain proceedings of Council
meetings
❑ Attest, index, and file resolutions /ordinances
❑ Act as custodian of city records and provide
certification of copies
MANDATED SERVICES
❑ Administer Oaths of Office
❑ Act as local elections official
❑ Serve as filing officer and filing official under
the Political Reform Act of 1974
❑ Maintain Local Appointments List under the
Maddy Act (boards and commissions)
❑ Serve as Secretary to the City of Rohnert Park
Foundation
5/6/2011
its]
CITY CLERK
CORE SERVICES
• Assist City Manager with preparation and
posting of City Council, Community
Development Commission and Rohnert Park
Financing Authority agendas in compliance
with the Brown Act
• Prepare Council Chamber and coordinate
presentations for meetings
❑ Develop and maintain records management
program
❑ Notarize city documents
❑ Respond to staff and citizen inquiries
5/6/2011
11
CORE SERVICES
❑ Coordinate and log responses to requests for
public records under Public Records Act
❑ Maintain and distribute updates to the
Municipal Code
❑ Open competitive bids
❑ Accept tort claims, subpoenas, and other legal
documents for service
❑ Provide administrative support to City
Attorney's Office
CITY CLERK
5/6/2011
12
DISCRETIONARY
❑ Oversee and maintain city website
❑ Serve as public information officer
❑ Serve as secretary to the Mobile Home Parks
Rent Appeals Board
❑ Process film permit applications
ALTERNATIVE SERVICE
DELIVERY OPTIONS
❑ Freeze Deputy City Clerk position and
reorganize administrative support to City
Clerk through creation of part -time
Administrative Assistant and part -time
Technical Advisor
❑ Coordinate with another agency to operate
records management center
5/6/2011
13
ALTERNATIVE SERVICE
DELIVERY OPTIONS
❑ Utilize interns to develop and maintain
electronic recordkeeping and document
imaging systems
❑ Utilize volunteers to perform routine clerical
duties
REVENUE OPPORTUNITIES
❑ Provide notary services to public at statutory
fee of $10 /signature
❑ Review current fee schedule for potential
adjustments to miscellaneous fees and costs
such as copy charges and taxicab application
fees
5/6/2011
14
MAJOR TASKS COMPLETED IN
FISCAL YEAR 2010/2011
❑ Conducted November 2010 Election
❑ Amended Conflict of Interest Code
❑ Amended City Council Protocols
MAJOR GOALS FOR FISCAL
YEAR 2011/2012
❑ Revise Agenda Process and Templates
❑ Develop and Implement Agreement Routing
and Approval Process
❑ Develop City Council and Administrative
Policy Manuals
❑ Update Citywide Fee Schedule
5/6/2011
15
ECONOMIC
DEVELOPMENT
ECONOMIC DEVELOPMENT
5/6/2011
16
MANDATED SERVICES
u Achieve objectives of the Economic
Development /Job Creation Action Plan, as
authorized by City Council
ECONOMIC DEVELOPMENT
5/6/2011
17
CORE SERVICES
❑ Address overall objective — Improve local
economy and create jobs for community
residents
❑ Retain existing businesses
o Work with and assist business owners to achieve
their business growth and expansion objectives
❑ Attract new businesses
o Work with business owners to locate new
businesses to City
CORE SERVICES
❑ Work cooperatively with Chamber, Sonoma
Mountain Business Cluster, Sonoma State
University, Sonoma County Community
Development Commission representatives and
others to achieve program goals.
❑ Work with commercial real estate brokers to
fill business vacancies
❑ Increase City revenue through achievement of
above Plan objectives
5/6/2011
CORE SERVICES
❑ Increase Rohnert Park as a desired destination
in the County by showcasing our community's
special qualities and amenities: the new Green
Center, Sonoma State University, the
Performing Arts Center, commercial recreation
facilities, City sports and recreational
facilities, Farmer's Market, community events,
and other attractions.
MAJOR GOALS FOR FISCAL
YEAR 2011/2012
❑ Develop and implement focused plan
objectives and specific work programs.
❑ Implement new Facade Improvement and
Commercial Loan Program.
❑ Work with State Farm on creative reuse of
property.
❑ Work with Sonoma Mountain Business
Cluster to locate company "graduates" in City
5/6/2011
IM
MAJOR GOALS FOR FISCAL
YEAR 2011/2012
❑ Reduce vacancy rates for commercial
properties
❑ Create or bring new jobs into City
❑ Meet and work with property owners to
facilitate business retention and attraction
❑ Establish partnership with SSU and local
businesses to create an economic partnership.
HOUSING &
REDEVELOPMENT
5/6/2011
20
DOUSING & REDEVELOPMENT
MANDATED SERVICES
❑ Prepare annual California Department of
Housing & Community Development Report
❑ Prepare & implement Community
Development Commission Five Year
Implementation Plan
• Maintain affordable housing database
• Submit annual reports for programs funded
through state and federal resources
❑ Staff Rohnert Park Rent Appeals Board
5/6/2011
M
HOUSING & REDEVELOPMENT
CORE SERVICES
❑ Assist organizations that promote economic
development and create jobs
❑ Act as Project Manager on Housing &
Redevelopment projects
❑ Work with community service organizations
serving Rohnert Park's low income residents
❑ Make affordable housing rehabilitation loans
available to income qualified residents
5/6/2011
22
CORE SERVICES
❑ Work with potential buyers and real estate
agents to preserve affordable units
❑ Monitor compliance with contractual
obligations to provide affordable units
❑ Staff Sonoma County Community
Development Commission Technical Advisory
Committee
❑ Provide referrals for housing, food and shelter
CORE SERVICES
❑ Administer budget and bond portfolio
❑ Search for and obtain grant funding
❑ Produce annual affordable housing income &
maximum rent guidelines
5/6/2011
23
HOUSING & REDEVELOPMENT
DISCRETIONARY
❑ Facilitate acquisition of properties for redevelopment
and the creation of affordable housing
❑ Assist underwriter and bond counsel with issuing
bonds to fund projects & programs
❑ Provide financial assistance to assist in the
development of affordable housing
❑ Develop & launch new programs that promote
economic development and affordable housing
❑ Participate in annual homeless count administered by
the Sonoma County Community Development
Commission
5/6/2011
24
ALTERNATIVE SERVICES
DELIVERY OPTIONS
❑ Enter into Service Agreement with County of
Sonoma to administer new Facade Improvement
and Commercial Rehabilitation Program
❑ Look for opportunities to partner with other
jurisdictions to provide support for other CDC
programs and services
❑ Outsource low- moderate income housing
monitoring
REVENUE OPPORTUNITIES
❑ Implementation of Facade Improvement and
Commercial Rehabilitation Loan Program will
generate sales tax and other City revenues
5/6/2011
URI
MAJOR TASKS COMPLETED IN
FISCAL YEAR 2010/2011
❑ Commercial Area Improvement Pilot Project
❑ Grant for $888,000 to the Sonoma Mountain
Business Cluster
❑ Agreement with the Sonoma County Tourism
Bureau for exclusive marketing services
❑ Agreement with the Rohnert Park Chamber of
Commerce for Professional Services associated
with Chamber operations
❑ Feasibility Study for Avram /Southwest properties
MAJOR TASKS COMPLETED IN
FISCAL YEAR 2010/2011
❑ Amended and Restated Lease with the City of
Rohnert Park for 6800 Hunter Drive
❑ Public Improvements and Affordable Housing
Reimbursement Agreement with City of
Rohnert Park
❑ Real Property Transfer and Cooperative
Agreement with City of Rohnert Park for
certain real property owned by the CDC
5/6/2011
26
MAJOR GOALS FOR FISCAL
YEAR 2011/2012
❑ Promote Economic Development and Create Jobs
through Implementation of CDC Programs
❑ Complete Redevelopment Feasibility Study of
Avram and Southwest Sites
❑ Engage in Competitive Bid Process and Award
Contract to Redevelop Avram and Southwest
Sites
❑ Initiate & Complete Recreational and
Community Facilities Feasibility Study
❑ Initiate Request for Qualifications to solicit
qualified developers for Recreational &
Community Facility Improvements
HUMAN RESOURCES
5/6/2011
27
HUMAN RESOURCES
MANDATED SERVICES
❑ Ensure compliance with state - mandated
requirements
❑ Administer City's labor and employee
relations program
❑ Administer employee leaves
❑ Administer compensation and benefits
❑ Administer hiring processes
5/6/2011
W
HUMAN RESOURCES
CORE SERVICES
❑ Design and conduct recruitment and selection
procedures
❑ Provide notice to employees of leave and
benefits rights under law
❑ Resolve return to work, risk management, and
safety issues with supervisors and managers
❑ Coordinate with oversight and benefit
administration organizations
5/6/2011
29
CORE SERVICES
❑ Design and maintain classification and
compensation structures
❑ Provide direction to payroll staff
❑ Coordinate the provision of mandatory
supervisory training, and of non - mandatory
supervisory and managerial training related to
legal compliance in employment practices
CORE SERVICES
❑ Confer with and coach employees at all levels
to identify and resolve workplace concerns
❑ Conduct formal investigations into alleged
violations of employee rights, report findings,
recommend and implement resolutions
❑ Coordinate activities and communications
related to formal grievance or discipline
processing
5/6/2011
30
CORE SERVICES
❑ Compile and maintain official personnel
records for all employees
❑ Maintain, update and disseminate
employment- related City policies and
procedures
❑ Administer and maintain records for health
and safety programs
HUMAN RESOURCES
5/6/2011
31
DISCRETIONARY
❑ Administer fringe benefits programs for
employees
❑ General risk management policy formulation,
training and medical exam notification
❑ Act as the City's California Public Employees'
Retirement System elections official
❑ Perform a variety of HR and compensation
administration services for Redwood Empire
Municipal Insurance Fund (REMIF)
ALTERNATIVE SERVICE
DELIVERY OPTIONS
❑ Contract with a third -party administrator for
fringe benefits administration
❑ Outsource recruitment and selection processes
to consultants on an individual, as- needed
basis
❑ Outsource classification and compensation
structure studies to consultants on an
individual, as- needed basis
5/6/2011
32
ALTERNATIVE SERVICE
DELIVERY OPTIONS
❑ Contract for Family Medical Leave Act and
California Family Rights Act leave
administration services
❑ Outsource personnel investigations to
consultants on an as- needed basis
MAJOR TASKS COMPLETED IN
FISCAL YEAR 2010/2011
❑ Finalized, adopted and published language for all
MOA's and Outlines for 2009 -2011
❑ Consolidated supervision and management
positions in Finance and Performing Arts Center,
resulting in reduction of personnel costs
❑ Established new code enforcement positions per
City Council request
❑ Communicated and implemented the City's
"Fraud in the Workplace" policy (Resolution
2009 -135)
5/6/2011
33
MAJOR TASKS COMPLETED IN
FISCAL YEAR 2010/2011
❑ Established city -wide "acting pay" policies
❑ Initiated grievance procedure review and
update with bargaining units
❑ Issued Request for Proposal for a Chief Labor
Negotiator; successfully obtained these
services
❑ Established an internship program, and filled
several intern positions
MAJOR TASKS COMPLETED IN
FISCAL YEAR 2010/2011
❑ Developed and disseminated an Injury and
Illness Prevention Program (IIPP) for the City
❑ Provided guidance and documentation for the
adoption of an amendment to the City's Public
Employees Retirement System contract,
implementing a negotiated change in
retirement benefits for new hires effective July
112011
5/6/2011
34
MAJOR GOALS FOR FISCAL
YEAR 2011/2012
❑ Deploy Fair Labor Standards Act Compliant
Timesheet System
❑ Update and Automate Performance Evaluation
System
❑ Develop and Implement a Comprehensive
Medical Leave Management Policy
❑ Decentralize Some Hiring Procedures
❑ Establish Policy and Procedure for the Use of
Temporary Employees
5/6/2011
35
1901 Harrison Street - Suite 900
Oakland, California 946 1 2 -3 50 1
voice 510.273.080 - fax 5 10.839.9 104
www,bwslaw.com.
Our File No.: 05605 -0012
MEMORANDUM
TO: Honorable Mayor and Councilmembers
FROM: Michelle Marchetta Kenyon, City Attorney
DATE: May 5, 2011
CC: Gabriel Gonzalez, City Manager
RE: Budget Analysis: City Attorney's Department Services and Legal Fees
This memorandum is provided to assist the Council in analyzing the City Attorney's
Department provision of legal services and the legal costs associated with those
services for the current fiscal year. The mission of the City Attorney's Office is to
provide the highest quality and most cost - effective legal services to the City of Rohnert
Park. The provision of all legal services is done in accordance with the highest
standards of professionalism, honesty, integrity, teamwork and ethical conduct.
The City Attorney is retained by the City Council to provide general legal services to the
City Council, City Manager and City Departments. The City Attorney is retained by the
City Council through a contract relationship, and the City Attorney's client is the City
Council, not any one Council Member. The City Attorney also serves as general
counsel to the City's Community Development Commission ( "CDC ") and Financing
Authority.
Goals of City Attorney Department
Legal Review and Advice:
• Deliver excellent legal advice by continuing to devote the time and resources
necessary to assure that requests for opinions, ordinances, resolutions, contracts
and all other non - litigation matters are completed in a timely and professional
manner.
• Work closely with the City Council, City Manager and City Staff to provide legal
advice and training on all legal matters impacting or affecting the City.
• Provide efficient, cost - effective delivery of legal services through preparation and
implementation of standardized procedures and forms and pursuit of additional
cost recovery where appropriate.
OAK #4845- 3257 -9593 v4
Los Angeles - Inland Empire - Oakland - Orange County - Palm Desert - Silicon Valley - Ventura County
Honorable Mayor and Councilmembers
May 5, 2011
Page 2
• Represent the City in negotiations involving complex agreements and contractual
disputes.
• Attend all regular City Council meetings.
• Attend special meetings and /or ad hoc committee meetings on an as- needed
basis.
• Attend Planning Commission meetings on an as- needed basis.
• Staff office hours at City Hall when necessary.
Litigation Defense:
• Zealously and ethically represent the City by devoting the time and resources
necessary to assure that each case is investigated, analyzed, researched,
defended or prosecuted in accordance with the highest legal professional
standards.
Legal Costs for Fiscal Year 2010 -2011
Below is a detailed cost analysis of the foregoing legal services, major projects, and
litigation performed on behalf of the City and the Community Development Commission
since July 1, 2010.
In summary, out of the general fund, the City has expended approximately $319,000 in
legal fees and costs for general city attorney services, personnel, real estate
transactions and litigation services for the first ten (10) months of this fiscal year. Legal
fees that were paid out of other enterprise, CDC or third -party reimbursements include:
$99,800 out of enterprise funds; $43,500 out of CDC funds; $204,500 was incurred for
development application processing and paid by third -party reimbursements; and
$155,600 was expended in defense of litigation and paid by third -party reimbursements.
The following represents the different categories of legal fee expenditures and their
approximate corresponding costs for the past ten (10) months:
General Fund Expenditures
General City Attorney Services: $182,000
Real Estate/Transaction Services: $ 27,750
OAK #4845- 3257 -9593 v4
Honorable Mayor and Councilmembers
May 5, 2011
Page 3
Specialized Personnel Services: $ 95,500
Litigation General Fund: 13,750*
Total: $319,000
Third -Party Reimbursements
Development Application Reimbursements: $205,000
Development Project Litigation` $156,000
Total: $361,000
Enterprise Funds
Water /Sewer, Rent Appeals Board Services: $100,000
CDC Services: 47,000
Total: $147,000
As you can see from the foregoing, there has been a marked reduction in legal fees for
general fund litigation from the previous year. Legal fees incurred in FY 2009/2010
were nearly $400,000 as opposed to the $13,500 expended in the first ten months of
this fiscal year. This reduction is due, in large part, to the resolution of virtually every
major litigation that had been pending over the last year.
You also will see that there has been a much larger sum in legal fees paid for third -party
reimbursement matters in this fiscal year. This is due primarily to the processing of 5
specific plan developments and legal defense of a project approval. With regard to the
development applications, two of those plans (Sonoma Mountain Village Plan and
Southeast Specific Plan) have been processed to completion with approvals in place,
and without any legal challenges being filed. Southeast Specific Plan applicants have
also paid to the City $250,000 as a one time payment, which was a negotiated term in
its Development Agreement. The litigation matter involves a CEQA challenge by the
This $13,000 will be reduced by $10,000 due to a negotiated settlement of attorneys' fees being paid by
a litigant to the City.
OAK #4845- 3257 -9593 v4
Honorable Mayor and Councilmembers
May 5, 2011
Page 4
Sierra Club to the City's approval of the Wal -Mart Store expansion project and
certification of the project's EIR.
As always, I will be available to answer any questions you may have regarding the
services provided and costs associated therewith.
OAK #4845- 3257 -9593 v4
FINANCE DEPARTMENT
DEPARTMENT SERVICES MODEL
® MANDATED
• Prepare Annual City-Budget
• Prepare Audited Financial Reports
• Respond to Public Records Requests
• Prepare Federal, State & County Reports
• Prepare Semi - monthly Payroll
• Administer Bond Requirements
• Administer Animal & Business Licensing
• Administer Grant Requirements
CORE
• Administer Utility Billing Operation
• Process Accounts Payable/Receivable
• Administer Centralized Purchasing
• Process Cash Receipts
• Perform Treasury Management
® DISCRETIONARY
• Perform Financial Analysis
• Perform Internal /External Audits
• Write Grant Applications
• Review Contractual and Lease Agreements
• Perform Feasibility and Cost - Benefit Studies
ALTERNATIVE SERVICES DELIVERY OPTIONS
• Restructure and consolidate functions
• Contract out or partner with another agency or firm
• Hire consultants
• Use part-time staff or unpaid interns
REVENUE OPPORTUNITIES
• Review animal license fees
• Review business license fees
• Research admissions tax as a potential source of revenue
• Enhance treasury management function to track cash flows and move investments daily
• Perform external audits to capture all revenue.
• Perform internal audits to improve efficiencies, reduce expenditures and increase revenues
• Apply for grant funding
• Perform feasibility and cost - benefit studies on existing and potential benefits /programs /services
MAJOR TASKS COMPLETED IN FISCAL YEAR 2010/2011
✓ Worked with "team" to finalize rate study and report, prepare communication materials, prepare legal
notices and provide information to the Citizen's Stakeholder Group
✓ Prepared and presented quarterly and mid -year budget updates
✓ Prepared the Comprehensive Annual Financial Report (CAFR) and other annual financial reports;
received the GFOA Certificate of Excellence award for the twenty- eighth consecutive year
✓ Prepared and presented the annual City budget
• Worked with consultant to prepare the actuarial report for Other Post Employment Benefits (OPEB) and
review funding options
• Conducted a Request for Proposal (RFP) for audit services
• Conducted an RFP for a new electronic digital display vendor and negotiated a lease agreement
✓ Performed calculations for labor negotiations
✓ Established an OPEB Trust Fund and started pre - funding a portion of the annual required contribution
✓ Assisted with tax filings to establish a 501(c)3 foundation for fundraising efforts to support City
operations
✓ Began rollout of electronic timecard reporting system
✓ Restructured Finance Department to consolidate functions and reduce full -time positions by one
position
✓ Conducted an RFP for Public Works replacement dump truck
✓ Prepared an RFP for a new radio system for Public Safety
MAJOR GOALS FOR FISCAL YEAR 2011/2012
1. Goal Update the City budget document and apply for the CSMFO budget award
a. Create Departmental Budget Documents outlining service model, delivery options, revenue
opportunities, tasks accomplished and goals. Create departmental org charts.
b. Include Enterprise Funds, Redevelopment Funds and Special Revenue Funds
c. Include Five -Year Capital Improvement Project Budget and CDC Budget
d. Create a glossary of financial and budgetary terms
e. Include all required criteria for CSMFO budget award and submit for award
2. Goal Prepare the CAFR and annual reports
a. Work with new auditing firm to review internal controls and management concerns
b. Attend training on implementation of GASB 54 on fund balance presentation
c. Submit all reports within prior to December 31St and apply for GFOA award
3. Goal Present Admissions Tax Study to City Council for consideration
a. Conduct survey of cities that have admissions tax
b. Analyze survey and present to council for consideration
c. Meet with business community impacted by tax
d. Place measure on ballot
4. Goal Implement full roll -out of electronic time card reporting system
a. Change pay period from semi- monthly to bi- weekly
b. Train departments on time card input
c. Meets FLSA requirements for recording all time worked
5. Goal Conduct an RFP for temporary debris box service
a. The current contract with two haulers expires June 30, 2011
b. Review terms of new contract, i.e. exclusive vs. non - exclusive, franchise fee, term, etc.
c. Consultant prepares RFP, evaluates proposals and recommends vendor to award contract
6. Goal Review the current refuse rates to determine if rates are sufficient to cover cost of service
a. Consultant updates the refuse rate model and staff reviews proposed rates
b. Staff/Consultant presentation to Council (only if rate change required)
c. Proposition 218 process followed to implement rate change
7. Goal Replace part-time Accountant position with full -time Budget Analyst/Accountant to perform the
following additional duties:
a. Prepare new budget book, perform financial analysis and reporting, create presentation
materials, perform feasibility and cost - benefit studies and assist with negotiation calculations
b. Create Cash Flow model to more manage investment portfolio on a daily basis.
c. Perform internal and external audits to find efficiencies, errors in payments for revenues &
expenditures and identify potential compliance /fraud issues.
8. Goal Assist with implementation of City non - profit foundation
a. File all tax forms with Internal Revenue Service and Franchise Tax Board
b. Participate as the Treasurer on the Board of Directors
c. Prepare Donation Policy
d. Develop a Fundraising Plan document and engage community members
9. Goal Update Purchasing Ordinance
a. Research and review current laws and dollar limits
b. Update and submit to City Manager for review and Council for approval
10. Goal Establish Purchasing Policy and provide training to employees
a. Research and develop a policy that follows updated Ordinance
b. Submit draft policy to City Manager for approval
c. Implement policy and train staff
11. Goal Establish a Cell Phone Policy
a. Research and develop a Cell Phone Policy that provides guidelines on:
i. Types of phones issued
ii. Optional cell phone stipends and amounts
iii. Who is given a cell phone
iv. Guides for usage and liabilities for misuse
v. Submit draft to City Manger for Approval
vi. Implement Policy and inform users
12. Goal Establish City Credit Card Use Policy
a. Research and develop a Credit Card Policy that coincides with Purchasing Policy
b. Establish who receives credit cards, what the limits are and how to use
c. Submit to City Manager for approval
d. Implement Policy and inform users
13. Goal Conduct RFP for Generator Maintenance
a. Current contract expires 9 -30 -2011
b. Meet with staff to determine services needed
c. Prepare RFP, submit for approval
d. Initiate new contract
14. Goal RFP for Janitorial Services
a. Current contract expires 5 -31 -2012
b. Meet with staff to determine service levels needed
c. Prepare and Issue RFP
d. Review RFP's and submit recommendation to Council for approval.
e. Implement New Contract
15. Goal RFP for Printing and Mailing Services for Utility Billing, Animal License and Business License
a. Current contract expires 11 -30 -2011
b. Meet with staff to write scope of work
c. Issue RFP
d. Review RFP and submit recommendation to Council for approval
16. Goal Update contracts set to expire, GADS, Postage Machine, etc.
a. Review contracts, meet with vendors and establish service levels
b. Approve any new contracts and implement
INFORMATION SYSTEMS DEPARTMENT
DEPARTMENT SERVICES MODEL
MANDATED
• Ensure that City complies with State
Federal and Local Laws regarding the Privacy,
Security and reliability of its data.
• Ensure data systems meet the Cities Records
retention policy and Electronic Media Use Policy
s CORE
o Maintain City Network Infrastructure
o Maintain Phone Network
• Maintain all City Computers and Servers
• Maintain Applications(Email, Springbrook etc)
• Control all Technology Costs and Purchases
® DISCRETIONARY
• Run PEG Channel
• Participate in SCPSC Meetings for Public Safety
• Assist in maintaining SCADA System
• Review of contractual agreements
• Feasibility Studies
• Assist departments with hosted services
• Employee intranet
ALTERNATIVE SERVICES DELIVERY OPTIONS
• Contract out or partner with another agency or firm
• The cities current Model for IT is very cost effective and could be used elsewhere.
• We can research outsourcing areas where it is cost effective or for needed expertise.
• Hire consultants
o They are usually expensive; however, we are looking at three companies to help us in areas we
are not proficient at.
• Use part-time staff or unpaid interns
• We already use part- time staff. We are investigating IT staffing companies.
• Simplify the delivery method to reduce the need of part timers.
REVENUE OR COST REDUCTION OPPORTUNITIES
• Consider offering IT services to non profits and smaller agencies.
• Perform feasibility and cost - benefit studies on existing and potential services
• Review all current contracts.
MAJOR TASKS COMPLETED IN FISCAL YEAR 2010 /2011
✓ Replaced a third of Public Safety PC's along with updating all other computers. Encrypted 45 car -based
laptops, securing the data on these mobile devices.
✓ Upgraded the PC's at the Animal Shelter and assisted deploying Pawtrax. The new Animal Shelter
software management tool should help streamline the workflow for the staff; new desktops should
improve the process and staff productivity.
✓ Responded to over 1600 requests from city employees 90 percent within 24 hours. IS is in the second
year of using the new help desk software. As users begin utilizing this software more and more
frequently, IS is able to respond quickly and follow up effectively to employee requests in a timely
manner.
✓ Negotiated a 25% reduction in Microsoft software cost for the next three years.
✓ Server Optimization 90 percent completed. We have converted our servers to software (Virtualized)
and move them to a central site to better manage the city resources. Increasing efficiency while saving
energy.
✓ Deploy hosted Citizen Request Management solution to help Public Works manage customer requests.
✓ Setup a low cost employee intranet
MAJOR GOALS FOR FISCAL YEAR 2011/2012
1. Goal Research and come up with possible solutions to reduce the lease cost of our current desktop
fleet.
a. By reducing the number of leased PC's we can lower cost and reduce the overall cost of
supporting them. We plan on using new technologies.
2. Goal Streamline or outsource PEG channel operation.
a. A large part of staff time is spent on operating the PEG channel. This is taking key personnel
away from other more important duties.
3. Goal Look into replacing options for our current AT &T OPT -E -MAN fiber contract which expires in
FY 2012 -2013. The goal is a 50 percent cost reduction.
a. We currently spend $ 68,000 a year on network and internet connectivity. The plan is to
research a more cost effective solution while maintaining or enhancing current performance.
4. Goal Cost effectively increase data storage overall by 100 percent.
a. We are closer to running out of data storage room. We have been curtailing employees' space
needs for several years. Recently the cost of hard disk storage has dropped opening up the way
to increase the networks capacity at a reasonable cost.
5. Goal Create a new disaster recovery plan for the new storage capacity and virtualized network.
a. Ascertain from each department how long they could go without their data and how much they
could afford to lose and develop a plan to meet these needs and present it to them.
6. Goal Upgrade email system to Exchange 2010 and implement a new email archiving system.
a. Bring email archiving in harmony with Public Records Act requirements.
7. Goal Upgrade the Sports Center Class and the Performing Arts Center ticketing servers.
8. Goal Assist Public Works with their Water and Sewer control system Server replacement.
9. Goal Maintain high level of customer service by promptly responding to Helpdesk requests.
ADMINISTRATIVE
SERVICES PRESENTATION
May 10, 2011
ORGANIZATIONAL CHART
5/6/2011
1
DEPARTMENT SERVICE MODEL
5/6/2011
2
FINANCE DEPARTMENT
• MANDATED SERVICES:
• Prepare annual City budget
• Prepare audited financial reports
• Comprehensive Annual Financial Report
• Community Development Commission Report
• RP Financing Authority Report
• GANN Report
• Transportation Development Act Report
• Single Audit
• Respond to Public Records Requests
FINANCE DEPARTMENT
MANDATED SERVICES:
• Prepare Federal, State & County Reports
• State Controller's Reports
• Statement of Indebtedness
• Streets Report
• Development Impact Report
• Business Improvement Area Quarterly TOT Report
• Prepare Semi - Monthly Payroll
■ Quarterly State & Federal Reporting
■ Annual W -2's
■ State Controller's Report on Wages
5/6/2011
3
FINANCE DEPARTMENT
• MANDATED SERVICES:
• Administer Bond Requirements
• Annual Continuing Disclosure Statements
• Arbitrage Reports
• Debt Service Coverage Requirements
• Administer Annual Animal & Business Licensing
• Current Rabies Certificate for Canines
• Bill annual Fire Inspection for Businesses
• Grant Administration
■ Record and Track Program Expenses
■ Submit Required Compliance Reports
FINANCE DEPARTMENT
5/6/2011
4
FINANCE DEPARTMENT
• CORE SERVICES:
• Treasury Management
• Check Bank Balances Daily
• Manage Investment Portfolio
• Record and Track Investments
• Prepare Monthly Cash Reports and Bank
Reconciliations
• Contract Management
• Lease Agreements
• Contracts
• Franchise Agreements
5/6/2011
19
FINANCE DEPARTMENT
• DISCRETIONARY SERVICES:
• Perform Financial Analysis
• Perform Internal /External Audits
• Perform Feasibility and Cost - Benefit Studies
5/6/2011
D
DEPARTMENT REORGANIZATION
TO IMPROVE EFFICIENCIES
CURRENT STRUCTURE: 5.5 FTE's
COUNTER FRONT
C FULL -TIME
PURCHASING
HALF -TIME
ACCOUNTING
PROPOSED STRUCTURE:
5 FTE's
(3.5) FRONT HALF -TIME
COUNTER PURCHASING
FULL -TIME
ACCOUNTING/
BUDGETING
Net Savings and Improved Efficiencies:
• Reduce staff by .5 FTE
•Cross -train Purchasing Agent to assist at front counter
•Hire Full -Time Accountant/ Budget Analyst to improve internal controls,
monitor and
analyze budget and perform internal /external audits
BUY AND /OR SELL SERVICES
• Partner with Another Agency or Firm:
• Currently Process Payroll for REMIF
• Currently Process Refuse Billing for RP Disposal
• Currently have one SSU Intern
• Buy /Sell Services - Other Agencies
• Purchasing
• Billing
• Accept Payments/ Provide Customer Service
• Payroll
• Financial Analysis
• Internal /External Audits
5/6/2011
7
OTHER OPTIONS
• Consultant Services:
• Financial Statements
• State Controller's Reports
• Treasury Management
• Increase Utilization of Interns
5/6/2011
8
REVENUE OPPORTUNITIES
• Review Animal License Fees
• Review Business License Fees
• Research Admissions Tax as a Potential
Source of Revenue
• Perform External Audits to Capture All
Revenue
REVENUE OPPORTUNITIES
• Perform Internal Audits to Improve
Efficiencies, Reduce Expenditures and
Increase Revenues
• Perform Feasibility and Cost - Benefit Studies
on Existing and Potential
Benefits/ Program/ Services
5/6/2011
4
MAJOR TASKS COMPLETED
• Instrumental with Development and
Communication of New Rates Necessary to
Sustain Sewer Operations
• Assisted with Preparation of OPEB Retiree
Medical Actuarial Report and Funding Options
• Awarded GFOA's Certificate of Excellence for
CAFR
5/6/2011
10
MAJOR TASKS COMPLETED
• Conducted a Request for Proposal for:
• New Electronic Digital Display
• Public Safety Radio System
• Performed Labor Negotiation Calculations
• Establish an OPEB Trust Fund for Retiree
Medical by Year End
• Submit application to obtain 501(c)3 status
from IRS
5/6/2011
11
MAJOR GOALS
• GOAL 1: Update the City Budget Document
• Create new budget templates that meet CSMFO
budget award criteria
• Include all funds
• Incorporate the 5 -Year CIP Budget and the CDC
Budget
GOAL 2: Prepare CAFR and annual reports
• Work with new auditing firm
• Implement GASB 54 Fund Balance Classification
• Submit CAFR and CDC report prior to December 31,
2011
MAJOR GOALS
• GOAL 3: Present Admissions Tax Study
• Conduct survey, analyze data and present to
Council
• Meet with business community
• Recommend proposed ballot measure
• GOAL 4: Implement City -wide electronic time
card reporting system
• GOAL 5: Review current refuse rates and
implement new rates if warranted
5/6/2011
12
MAJOR GOALS
• GOAL 6: Update the Purchasing Ordinance
and establish purchasing policies
5/6/2011
13
ORGANIZATIONAL CHART
INFORMATION SYSTEMS
➢ Ensure data systems meet the City's Records
Retention Policy and Electronic Media Use Policy
➢Oversee and operate the City's Public Access
channel
5/6/2011
1
■ Control City Technology Budget and costs.
■ Approve all purchases r`
Standardize as much as possible.
c
INFORMATION SYSTEMS
DEPARTMENT
• DISCRETIONARY SERVICES:
• Participate In Sonoma County Public Safety
Consortium
• Review of Contractual Agreements
• Assist departments with hosted services and in
house applications.
• Laserfiche Document Imaging
• Citizen Request System °
• Assist with key department systems.G
• Firehouse System for Public Safety
■ SCADA Support for Public Works Water system 0 i
�x
5/6/2011
2
Partnering with another agency
► The City's current model for Information Systems
is very cost effective and efficient and could be
modeled elsewhere. We have offered this to
smaller agencies. And will continue to.
► We outsource areas only where needed expertise
is required. If we can do it at a lower cost, we do.
► Hire consultants only when absolutely necessary.
We partner with Petaluma whenever possible.
5/6/2011
k,
Major Accomplishments
• Responded to over 1,600 requests for service.
• Negotiated a 25 percent reduction in Microsoft
Software cost for the next three years.
• Optimized Server fleet; PG &E rebate on the way.
• Deploy a Citizen Request Management Solution.
V
MAJOR GOALS FOR NEXT YEAR
► Implement plan to replace leased PC's with
Virtual desktops, lowering leased cost by 15
percent.
► Research lowering our Fiber Network Costs
► Outsource Public Access Channel Operation
with no cost to General Fund.
► Upgrade Exchange Email servers
► Update DATA Disaster Recovery Plan
Continue to offer the best service at the lowest
cost.
5/6/2011
4
DEPARTMENT OF DEVELOPMENT SERVICES
DEPARTMENT SERVICES MODEL
m MANDATED
• Comply with state and federal laws
• Ensure safe buildings
o Build safe and usable streets
• Keep water and sewer systems working
• Keep traffic moving
• Ensure adequate water supply
• Ensure adequate sewer treatment
• Prevent future flooding
11
CORE
• Create and maintain attractive neighborhoods
• Assist in the creation of economically vibrant development
• Protect property rights & enhance property values
• Keep city financially viable
• Respond to community
• Bring amenities to benefit citizens and businesses
• Participate in broader regional community
• Customer service
s DISCRETIONARY
• Extra assistance to help with incomplete permit applications
• Extra research and response to informal developer inquiries
• Response to public inquiries and requests beyond core and mandated services
• Other regional coordination
ALTERNATIVE SERVICES DELIVERY OPTIONS
m In -house Delivery
Outside professional delivery
m Other Municipality Delivery
REVENUE OPPORTUNITIES
m Code Compliance
m Deliver capital projects from water, sewer, roads funding and grants — in house if possible
MAJOR TASKS COMPLETED IN FISCAL YEAR 2010/2011
✓ Completed the Sonoma Mountain Village project entitlement process and certification of its
environmental document
✓ Amended the Zoning Ordinance to incorporate the SMV — Planned Development
✓ Completed the Southeast Specific Plan project entitlement process and certification of the
environmental document.
✓ Completed the Southeast Specific Plan annexation process and received approval for
annexation by the Sonoma County LAFCO
✓ Completed the entitlement process for the Wa1Mart Expansion
✓ Completed the entitlement process for the North Bay Centre rehabilitation and refurbishment
✓ Completed the General Plan Amendment for the Transportation Element
✓ Completed the adoption of the Planning Fees Update
✓ Completed the adoption of the Building Fees Update
Rescinded the Public Art Fee
✓ Completed and Adopted the 2010 Building Standards Code
✓ Completed road resurfacing project funded by Federal Stimulus money
✓ Completed Roads and Water Standard Updates
✓ Secured grant funding and started preliminary design of Copeland Creek Bike path
✓ Completed design of Eastside Trunk Sewer
✓ Rewrote Sewer Ordinance to pave way for new development
✓ Designed two street re- paving projects
✓ Completed demolition of Southwest Fire Station
MAJOR GOALS FOR FISCAL YEAR 2011/2012
GOAL 1: Conduct Building Permitting Needs Assessment
• An essential first step toward electronic and online permitting
GOAL 2: Amend /Adopt Citywide Design Guidelines
• Assist implementation of Fagade and Commercial Rehabilitation Program
GOAL 3: Amend the Zoning Ordinance
• To comply with Housing Element update requirements
GOAL 4: Secure Multiple Plan Check Services Contracts to Reduce Costs and Streamline Permitting
• Lowers costs and increases competition among plan check firms
GOAL 5: Update Code Compliance Program
• Revise forms, create process for complaint intake and resolution. Review and make
recommendations for administrative process within the Municipal Code
GOAL 6: Complete Traffic and Street Lighting Standards
• To meet State law, prevent unnecessary costs for incoming development, and ensure low -cost
maintenance
GOAL 7: Streamline the encroachment permit process
GOAL 8: Undertake $1.5 million of Sewer Construction Projects
• Replace aging sewer collection system
GOAL 9: Undertake $2 million in Water Construction Projects
• Preserve and replace aging water distribution system
GOAL 10: Undertake $1.5 million in Streets and Pathway Projects
• Preserve streets and existing bike path
• Meets requirements for future regional funding for streets
CITY OF ROHNERT PARK
DEVELOPMENT SERVICES
Development Services combines
Planning, Building and Engineering
to efficiently provide technical and professional services
that ensure that Rohnert Park's development, growth and
improvement exceeds the expectations of the community
and is of the highest possible quality.
1
Department Org Chart
DEVELOPMENT
SERVICES �
PLANNING i
BUILDING
ENGINEERING
CONTROLS
CONTROLS
DESIGN
BUILDING
CAPITAL PROJECTS
LNPBIE 1
GRANT
REVIEW
PLAN REVIEW
(Walrr, sevaer,
F{EIGHBORHO...
WRITING
_...._...__.__..— .__._. _.
sneers, drainage)
. __._...._........__._......_...
__..___ _ ................ _.
NVIRONtdENTAI
E NVI.R.O.N.M.E'N'TA-
BUIIDING
PRESERVE l
COST
REVIEW
FPWVATE PROJECT
PROPERTY VALUES
RECOVERY
REVIEW &
.___ - --
INSPECTIONS
F ADVANCE
BUILDING
-- -- - ----
CONTRACT
PLANNING
INSPECTIONS
PUBLIC FACIIlTIES
ADMINSTRATION
FINANCE PLANNING
—� --
HOUSING SUPPLY
&AFFORDABILITY
WATER SUPPLY &
INSURANCE
ADMINISTRATION
SEWER TREATMENT
—
SPECIAL
MAPPINIC G )
_
PRO)ECTS
GE06RAPH INFO
SYSTEMS
DEVELOPMENT SERVICES
z
MANDATED SERVICES
COMPLY WITH STATE AND FEDERAL LAWS
o Ensure that City and its customers
comply with laws
0 Implement regulatory changes
o Update ordinances, codes, building
and construction standards
13 Provide required reporting to
regulatory agencies
MANDATED SERVICES
ENSURE SAFE BUILDINGS
v Implement building standards
codes
D Review project plans
for compliance
o Inspect building projects for
safe construction
3
MANDATED SERVICES
BUILD SAFE AND'USABLE STREETS
MANDATED SERVICES
o Build, pave and
reconstruct streets
G Replace curb ramps
for ease of use by all
KEEP WATER AND SEWER SYSTEMS WORKING
13 Build new pipes
o Replace aging pipes
o Develop accurate data
and plans to fund pipes
lH
MANDATED SERVICES
KEEP TRAFFIC MOVING
o Conduct traffic speed surveys
v Update traffic signals and signs
as needed to comply with laws
a Administer permits for oversize
Loads passing through the City
MANDATED SERVICES
ENSURE ADEQUATE WATER SUPPLY
o Assess water needs of current and
future residents and businesses
o Develop Urban Water
Management Plan
o Coordinate water conservation
o Coordinate with regional partners
for Rohnert Park's share of water
5
MANDATED SERVICES
ENSURE ADEQUATE SEWER TREATMENT
13 Coordinate with regional
partners for Rohnert Park's
share of sewer treatment
MANDATED SERVICES
PREVENT FUTURE FLOODING
o Work with new development
on stormwater management
o Manage floodplain
o Coordinate with regional
flood control agency
L
DEVELOPMENT SERVICES
CORE SERVICES
CREATE AND MAINTAIN
ATTRACTIVE NEIGHBORHOODS
o Administer zoning,
environmental, noise
ordinances
o Enforce code compliance
13 Review building & site
design compatibility
7
CORE SERVICES
ASSIST IN THE CREATION OF
ECONOMICALLY VIBRANT DEVELOPMENT
13 Administer zoning, environmental, noise ordinances
o Enforce code compliance
0 Review building & site design compatibility
CORE SERVICES
PROTECT PROPERTY RIGHTS &
ENHANCE PROPERTY VALUES
o Enforce codes and ordinances
0 Provide review, permitting and
inspections for sites and
buildings
CORE SERVICES
KEEP CITY FINANCIALLY VIABLE
CORE SERVICES
o Cost recovery from private
projects and development
(over $1.25 million in 2010)
o Secure grants to support
mandated activities
0 Administer over $1 million in
grant funding annually
o Manage cell tower leases
RESPOND TO COMMUNITY
o Council requests
o Citizen requests (e.g. traffic
requests such as curbs, stop
signs, crosswalks)
D Provide staff to Commissions
and Committees
9
CORE SERVICES
BRING AMENITIES TO BENEFIT CITIZENS
AND BUSINESSES
CORE SERVICES
0 SMART station
0 Highway 101 amenities
(e.g. ramps and signals)
0 Community Development
Commission projects
PARTICIPATE IN BROADER
REGIONAL COMMUNITY
■ City Center Plaza
■ Spray parks, all- weather fields
or parks of any type
0 Sonoma County
Transportation
Authority
10
CORE SERVICES
CUSTOMER SERVICE
13 Provide regular
walk -up counter hours
DEVELOPMENT SERVICES
11
DISCRETIONARY SERVICES
13 Extra assistance to help with incomplete permit
applications
o Extra research and response to informal developer
inquiries
o Response to public inquiries and requests beyond core
and mandated services
o Other regional coordination
ALTERNATIVE
SERVICE DELIVERY OPTIONS
12
IN -HOUSE DELIVERY
• Most economical
delivery
• In -house staff allow
direct and indirect cost
recovery
13 Billing covers overhead
costs otherwise borne
by General Fund
❑ Costs for in -house staff
are fixed 4 not easily
scaled up or down when
project work fluctuates
IN -HOUSE DELIVERY
❑ In -house delivery variations
is Part -time / Limited -term staff to fill fluctuating
workload
io Cross - training to broaden capacity across existing
staff
■ Administrative Assistants and Community Development
Assistants
■ Project inspector is also building inspector
13
OUTSIDE PROFESSIONALS
13 Provide capabilities
not available from
staff
13 Use of consultants
easily scaled to
workload
❑ Expensive alternative
to in -house staff
OUTSIDE PROFESSIONALS
❑ Variations
0 Master Agreements with outside professionals
to create competition amongst them
o Master Agreements 4 faster task order
execution and ability to move quickly on
projects
14
OTHER AGENCY DELIVERY
❑ Explored shared resources with other
Sonoma County cities
o Code compliance position
13 Coordinated /shared capital project delivery
OTHER AGENCY DELIVERY
❑ Past experience
o Offered to work with Cotati, but the project type,
mix and timing has not lined up
o Offered to work with Santa Rosa on larger sewer or
roads projects, but timing and project type has not
lined up.
13 Canon Manor Sewer — Facilities are
County- constructed, but City- operated
0 V
OTHER AGENCY DELIVERY
❑ Observations
13 Lack of available staff to be responsive to Rohnert
Park projects
o Uncertain timing, more difficult coordination of both
municipalities' projects
o Priorities — Whose projects takes precedence?
o Risk in involving other staff in our projects
■ Knowledge of standards
■ Lack of local history
OTHER AGENCY DELIVERY
❑ Continuing efforts
0 Looking into City of Santa Rosa's testing and quality
control lab for our roadway projects
16
REVENUE
OPPORTUNITIES
REVENUE OPPORTUNITIES
❑ Code Compliance
o Code officer to
enforce permits and
licenses for new
business (e.g. sign
permits or business
licenses)
17
REVENUE OPPORTUNITIES
❑ Deliver water, sewer,
street projects
o These projects make
engineering most billable
and offset overhead costs
usually borne by the
General Fund
o Enterprise funds and local
streets and roads funds
offset General Fund costs
MAJOR TASKS COMPLETED IN FISCAL
YEAR 2010/2011
M
MAJOR TASKS COMPLETED
❑ Sonoma Mountain Village project entitlement
13 Adopted Planned Development
13 Amended the Zoning Ordinance
❑ Southeast Specific Plan
project entitlements
o Specific Plan annexation
MAJOR TASKS COMPLETED
❑ WalMart Expansion
❑ North Bay Centre
rehabilitation and
refurbishment
(aka 24 -Hour Fitness)
IR
MAJOR TASKS COMPLETED
❑ General Plan Amendment
for the Transportation
Element
❑ Updated Planning Fees
❑ Updated Building Fees
❑ Rescinded the Public Art
Fee
MAJOR TASKS COMPLETED
❑ Adopted the 2010 Building
Standards Code
❑ Completed Street and Water
Standard Updates
❑ Rewrote Sewer Ordinance to
pave way for new development =. ' °1
20
MAJOR TASKS COMPLETED
❑ Completed street resurfacing
project funded by
Federal Stimulus
❑ Secured grant funding for
Copeland Creek Bike Path
Reconstruction
❑ Designed two street
re- paving projects
❑ Completed demolition of
Southwest Fire Station
MAJOR TASKS COMPLETED
m
❑ Completed design of Eastside Trunk Sewer (Ph. 2)
s
i
Wb
Pla a nned
Development
n� r
Q � 'iE � Hz Uf spec f oty
Plan Area
LEGEND:'�U:
t. EAST50ETRUNKSNJER PrusEt' � �j¢ i;'' tt IG ``�'--
2 ERSTSIDETR- S- RPHASE2
P
J. EM1STSIDE TRIk1KStl4ER PHA5E 2a
1. EASTSIDE-KSEWERPHASES
S. ItnERCEPTOR DUIPALL PROJECT q \j
Canon
Manor
Specific
Plan Area
21
MAJOR GOALS FOR FISCAL YEAR
2011/2012
MAJOR GOALS
❑ GOAL 1:
Conduct
Building Permitting
Needs Assessment
O An essential first step
toward electronic and
online permitting
22
MAJOR GOALS
❑ GOAL 2:
Amend /Adopt Citywide
Design Guidelines
o Assist implementation of Fagade
and Commercial Rehabilitation
Program
❑ GOAL 3: Amend the
Zoning Ordinance
o To comply with Housing Element
update requirements
MAJOR GOALS
❑ GOAL 4:
Secure Multiple Plan Check Services Contracts to
Reduce Costs and Streamline Permitting
13 Lowers costs and increases competition among plan
check firms
❑ GOAL 5:
Update Code Compliance Program
o Revise forms, create process for complaint intake and
resolution. Review and make recommendations for
administrative process within the Municipal Code
23
MAJOR GOALS
❑ GOAL 6:
Complete Traffic and Street
Lighting Standards
13 To meet State law, prevent
unnecessary costs for incoming
development, and ensure low -cost
maintenance
❑ GOAL 7: Streamline the
encroachment permit process
MAJOR GOALS
❑ GOAL 8:
Undertake $1.5 million
of Sewer Construction
Projects
o Replace aging
sewer collection system
24
MAJOR GOALS
❑ GOAL 9:
Undertake $2 million in
Water Construction
Projects
o Preserve and replace
aging water distribution
system
MAJOR GOALS
❑ GOAL 10:
Undertake $1.5 million
in Streets and Pathway
Projects
o Preserve streets and
existing bike path
o Meets requirements for
future regional funding
for streets
25
CITY COUNCIL SPEAKER CARD
Date: _r U (l Agenda Item #:
Name: d �Ao (1, (
Address: % 7-9
Phone: —70 —]
TOPIC: I s V5(N eSS V PG-Ct, Q'
Brief Summary of Comments:
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CITY OF ROHNERT
PARK
2011 -12 BUDGET WORK SESSION
May 10, 2011
Budget Work Session Agenda
1. Fiscal overview
2. Discussion of critical issues
— Total Budget Structural Deficit
— Unfunded Liabilities
— Impacts of Current Economic Recession
— General Fund Budget FY 2010/11 Expenditures
— General Fund Cash Balances
— Sewer Fund Overview
— Redevelopment Agency Update
3. Discussion of proposed fiscal policies
Fiscal Status
• Where we are today
— Budget and structural deficit
— Unfunded liabilities
— Deteriorating infrastructure
• How we got here
— Lack of a longterm fiscal plan
• Reactive versus proactive approach
— Lack of new longterm revenue sources
— Lack of setting aside reserve funds to pay for escalating
personnel and operational costs
— Deferment of Capital Improvement Program
— State takeaways
Budget Definitions
• Liability
— Current or future monetary obligation that legally binds the City to pay a debt
• Unfunded Liability
— The amount by which the liabilities (debt) of a program exceeds the program
assets (income)
• Operating Budget
The portion of the budget that pertains to day -to -day operations providing
basic governmental services
• Infrastructure
— The basic physical structures and facilities needed for the operation of a
community including roads, utilities (water, sewer and refuse)
• Structural Deficit
— A budget deficit that results from a long -term imbalance in income and
expenditures
• City Fleet
— City owned vehicles and equipment such as patrol cars, fire trucks, service
trucks, tractors, etc.
• Capital Improvements
— New construction or improvements that add value to an existing capital asset
either by lengthening its estimated useful life or increasing its service capacity
2
GENERAL FUND
STRUCTURAL DEFICIT
OPERATING BUDGET DEFICIT
$ 2.9M'
UNFUNDED LIABILITIES:
Infrastructure
$104.9M
$ 18.5M
Vehicles
$ 7.3M
$ 0.5M
Retiree Medical
$ 44.9M
$ 2.5M
Accrued Leaves2
$ I.SM
$ N/A
TOTAL STRUCTURAL DEFICIT
$158.6M
$ 24AM
Removed $500K projected funding from Tribe
2Accrued leave consists of vacation and compensatory time
TOTAL
STRUCTURAL DEFICIT
OPERATING BUDGET DEFICIT
$ 2.9M'
UNFUNDED LIABILITIES:
Infrastructure
$104.9M
$ 18.5M
Vehiclesz
$ 8.5M
$ 0.6M
Water & Sewer
$ 167.8M
$ 12.OM
Retiree Medical
$ 53.2M
$ 2.5M
Accrued Leaves3
$ 1.5M
$ N/A
TOTAL STRUCTURAL DEFICIT
$335.9M
$ 36.5M
' Removed $500K projected funding from Tribe
2 Includes Water and Sewer Fund vehicle replacement
3Acerued leave consists of vacation and compensatory time
s
6
3
City Facilities
Unfunded Liabilith
(Future IOUs)
Physical Asset Maintenance
• Operating Cost
— Cleaning
— Handy -man tasks
— Graffiti Removal
• Major Maintenance Cost
— Re -roof
— Painting
— Equipment Replacement
M
If We Fail to Maintain,
Rehabilitate and Replace
R A5 7�,5
a
Why We Care:
End of the Nainbow 4
for future �enerationS ..
V
is
VME 6FANWN wvnv.davogran[und . tnm
5
Staff Analysis of Unfunded Liabilities
(IOUs) for City Facilities
• Intended to quantify the size of the issue
• Based on reasonable estimates and industry
standards for asset life
• Estimates are considered order -of- magnitude,
good to within plus or minus 40%
6
Definitions
• Annual Shortfall
— Difference between what City spends and what it
should spend or set aside to maintain,
rehabilitate, or replace existing facilities.
—Amount needed to keep problem from getting
worse.
— ($12) million per year city -wide
- ($6) million per year General Fund
— ($3) million per year each Water & Sewer Funds
Definitions
• Accrued Unfunded Liability (Backlog)
— Total of past Annual Shortfalls over life of asset.
— Total backlog of maintenance, rehabilitation, or
replacement needs.
— ($273) million city -wide
— ($105) million General Fund
— ($86) million Water Fund
— ($82) million Sewer Fund
VA
Definitions
• Annual Unfunded Liability (Catch -up)
— Amount needed to rehabilitate or replace an asset
by the end of its estimated useful life.
— Annual Shortfall plus a portion of Accrued
Unfunded Liability (Backlog)
— Funding at this level allows an asset to be replaced
or rehabilitated at the end of its life.
i
All Facilities
Total Accrued Unfunded Liability (Backlog)
$160
$145
$140
$120
$100
N
�
�
G
$69
$60
$47 \ i
$40
......... _
$20 ...................
a
$12
Buildings Water & Sewer Streets & Drains Parks & Recreation
i
Annual Unfunded Liability
(Catch -up)
• ($31) million per year total
• ($18) million per year General Fund
• ($7) million per year Water Fund
• ($5) million per year Sewer Fund
Summarv: Citv Facilitv IOUs (Millions)
Category
Liability
Description
Total
General Fundi
Water
Sewer
Annual Shortfall
($3)
($2)
($1)
($0)
Buildings
Accrued Unfunded Liability
Backlog
($47)
($24)
($20)
($3)
Annual Unfunded Liability
Catch -up
($6)
($3)
($3)
($0)
Annual Shortfall
($5)
$0
($2)
($3)
Water &
Sewer
Accrued Unfunded Liability
Backlog
($145)
$0
($65)
($80)
Annual Unfunded Liability
Catch -up
($9)
$0
($4)
($5)
Annual Shortfall
($4)
($4)
$0
$0
Streets &
Drains
Accrued Unfunded Liability
Backlog
($69)
($69)
$0
$0
Annual Unfunded Liability
Catch -up
($14)
($14)
$0
$0
Annual Shortfall
($1)
($1)
$0
$0
Parks &
Recreation
Accrued Unfunded Liability
Backlog
($12)
($12)
$0
$0
Annual Unfunded Liability
Catch -up
($2)
($2)
$0
$0
nnual Shortfall
($12)
($6)
($3)
($3)
Total
Accrued Unfunded Liability
Backlog
($273)
($105)
($86)
($82)
Annual Unfunded Liability
Catch -up
($31)
($18)
($7)
($5)
9
General Fund Facilities
Annual Unfunded Liabilities'
Annual Shortfall Annual Unfunded Liability (Catch -up)
10
General Fund Facilities
Future Annual Liability if No Change (Catch -up)
$25
...
...................
$23.2
$21.1
3
$20
$18.5 .... _
$.19.2..._.
s
Y
m
Parks
s
$15
..... __..
a �
m c
_! 0
Streets
$10
C
D
7
p
C
a
$5
_ ._.._..
Buildings
3
2011
2012
2014
2016
10
Buildings
Total Unfunded Liabilities (Backlog)
$25
$20�
° $15 -' Z
0
0
gw-
. __ . ..............
s
General Fund Water Sewer
11
Water
Annual liabilities
Net Annual Shortfall
"_ Annual Unfunded Liability (Catch -up)
$3.5
$3.0
$2.5
0
$2.0
_
0
0
v
$1.5
3
a
$10
$0.5
y
��
Pipelines
Buildings &
Small Services Medium Large Services Hydrants
Wells
Services
11
$3.0
$2.5
o $2.0
5.
o $1.5
v
m
C
C
a $1.0
$0.5
Sewer
Annual Liabilities
I Net Annual Shortfall Annual Unfunded Liability (Catch -up)
pp
Pipelines forcemains Medium Large Services Manholes Buildings
Services
Streets & Drains
Total Unfunded Liabilities (Backlog)
$30
$20_. \ _....
c /Ox/3 �� O
;e
� 15rt
N
ri
..........
Q \ \1
$5�
F1�:fba
Street Storm Drains Sidewalks Curb and Street Lights Traffic Signals
Pavement Gutter
12
13
PAVEMENT LIFE CYCLE
PAVEMENT
Condition RECOMMENDED TREATMENT
EXCELLENT
PREVENTATIVE MAINTENANCE
VERY GOOD
($5 1SQ. YD.)
40%
DROP IN
QUALITY
75/ OF REHABILITATION
GOOD
PAVEMENT ($34 1SQ. YD.)
<--
LIFE
PARTIAL RECONSTRUCTION
($58 1SQ. YD.)
40/ v
POOR
DROPIN
QUALITY FULL RECONSTRUCTION
12/ ($100 1SQ.YD,)
OF LIFE --" -
VERY POOR
4 8 12 16 20
Pavement Age (Years)
13
Conclusions
• Our public facilities are part of what makes
Rohnert Park special.
• Problem is not unique to Rohnert Park or city
government.
• Costs are enormous and growing each year.
• City facilities are assets and also liabilities.
• Problem will not be solved with one step.
Conclusions
• First step is identifying problem - today.
• Next step is getting operating budget in
balance.
• Then start funding Annual Shortfall.
• Lastly, start working on backlog.
14
Recommendation
• Conduct formal study using outside
professionals to evaluate unfunded facility
liabilities to better understand problem.
CITY FLEET - Summary
AGE rs) Number of Vehicles Percent of Fleet
20+ 14 10%
11 -19 50 32%
1 -10 87 58%
TOTAL: 151
15
CITY FLEET - Summary
Department General Types of Vehicles
Administration
Community Services Passenger vehicles, light -duty tricks, vans
Development Services -
Ladder truck, pump trucks, emergency /hazmat
Fire vehicle, light trucks, utility vehicles
Police
Interceptors, patrol motorcycles, utility vehicles, light -
duty trucks
Construction /heavy maintenance vehicles, backhoes,
Public \Forks mowers, sewer hydro -vac, heavy -duty utility trucks,
dump trucks, light -duty trucks
31
CITY FLEET - Unfunded Liabilities
Fleet Summary
49 vehicles beyond useful service life
62 vehicles will exceed their useful service
life within the next 5 years
40 anticipated future replacements
- -available Set Aside Replacement Funds (cash)
Total Estimated
Replacement
Cost ($ M)
$2.2
$2.9 (accrued & future liability)
$3.4 (beyond 5 years) — f tlu e Iiabiliiy
$0.0
Total Accrued & Future Unfunded Liability: $$.5M (to replace all vehicles)
16
CITY FLEET — Required Total Annual Depreciation
What we should be paying each year:
Fund Annual Depreciation (s /yr)
General Fund 505,000
Water 51,000
Sewer 29,500
Total Annual Depreciation: $585,500
-Based on maintaining current fleet of 151 vehicles
CITY FLEET — Replacement Practices
Vehicles replaced/ funded:
- On an as- needed basis
- Typically postponed
- Kept in service beyond useful life
- No set -aside funding (depreciation)
Funded through appropriation in
operations budget (pay -as- you -go)
17
CITY FLEET — Replacement Practices
Problems:
- Excessive (and growing) maintenance costs
- Legal requirements /mandates
- Diminished reliability
THESE PROBLEMS ARE COMPOUNDING IN NATURE
CITY FLEET — Industry Standards Best Practices
A life -cycle approach:
- Consider replacement costs upon purchase
- Fund replacements incrementally over life -cycle
- Purchase replacements from established capital fund
- Replace when maintenance costs > vehicle value
18
Vehicle Replacement Best Practices
Vehicle Value
inaffilewnce > $value
(4 2 X, f City vehicles)
I
I
1
1
1
Maintenance Cost
I
I
*Ideal Replacement Time Time
*Varies with vehicle type & tisaize
CITY FLEET — Recommendations
1. Establish VEHICLE REPLACEMENT FUND
2. Each year: fund replacement (depreciation) of all new
vehicles
3. As possible: fund replacement of all vehicles (< 5 yrs)
4. Continue "Pay /Go" system for older vehicles (> 5 yrs)
5. Surplus retired vehicles (remove from fleet)
19
CITY FLEET — Recommendations
VEHICLE REPLACEMENT FUND
How it works...
Vehicle Capital
Replacement Fund
Operating
Budget
Revenue
`4ee - Annual Depreciation
Revenue Ilex' front departments
City Departments nc eme tsVehlCle
V A.UC�10T
Expense Ex pens Purchases
Vehicle Replacement
CITY FLEET— Recommendations
VEHICLE REPLACEMENT FUND
DIFFERENCE
2009 -10 201041 2011.12 FROM
ACTUAL ACTUAL BUDGET ACTUAL DIFFERENCE
REVENUES
kllen3�t lnr:oine
Rnping3nnall fca� (r1eL'edntionj
9tln'K'R Frres
TOTAL REVENUES
EXPENSES BY DEPARTMENT
Connruniry Servkns
Ftecreuna� ?rgnms
Sen*x Cantu;
ftl—Wg alts Centro
(kv:,b{m3fM SYrvicec
Bu:l :iirw DIV
Eogatecair 3
V''ubaC'>plery•
1`obce
Irm
M-.A ShWw
P.DacVJ<ak<
wrul S.,ices
Uft-
TOTALEXPENSES
Se SII LTING GAIN (LOSS)
VEHICLEIEQUIPMENT REPLACEMENTS - FY 2011.12
�R,dment Purclese Cost
Pt(uet; 40,!Iy(Fire)
t'r! w,! TI•irn -
IvbhC Solaro (Pofce)
Veittza 7Yf 1
Pubes Wfais (('KneroE Srsmres)
f'trotic V.brbs (V6litgsl -
iaN>it T AL
T OTAL
T PURCHASES
20
CITY FLEET — Recommendations
Depreciation Methodology
A Practical Example:
- New vehicle = $20,000
- Life expectancy = 15 years
- Future replacement cost = $31,200
(3% inflationary index)
- Annual depreciation = $2,080 /yr
Note — life expectancy varies by vehicle type and use
21
CITY FLEET — Recommendations
How We Could Get Caught Up -
A phased approach with all existing vehicles
49 vehicles fully depreciated $5.1M
,Continue pay -as- you -go
62 vehicles > 5 years old (accrued liability)
40 vehicles < 5 years old (newer) - Fund annual depreciation (as possible)
General Fund - $150,000 /yr
Water- $24,500/yr
Sewer - $29,400/yr
,'TOTAL ANNUAL DEPRECIATION. $203,900/yr
Not(: — this, value hill inrrrase as alder uehirlec arr replaced through the "Pay/ (_on sy-ster,
CITY FLEET — Recommendations
What we should do beginning 201112012:
- Establish a Vehicle Replacement Fund
- Implement depreciation schedule
- Apply depreciation methodology
- Implement phased approach with newer
existing vehicles
22
ACCRUED LEAVE BALANCES
• VACATION @ 6/30/10: $1,338,971
• COMP TIME @ 3/31/11: $ 128,971
TOTAL: S1,467,942
45
RETIREE MEDICAL
UNFUNDED LIABILITY
46
23
UNFUNDED
$5.3M
$3.OM
$44.9M
$53.2M
LIABILITY
ANNUAL
$0.4M
$0.3M '
$4.OM
$4.7M
REQUIRED
CONTRIBUTION
PROJECTED
$0.4M
$0.3M
$1.5M
$2.2M
CONTRIBUTION
UNFUNDED
$ -
$ -
(S2.M)
46
23
RETIREE MEDICAL
ACTUAL PAY —GO COST
In
2004 2005 2006 2007 2008 2009 2010 2011
47
24
Rohncrt Pnrk— Ccnend
Fund Prefun ling Study — Cluvt 2
Projected Contribution Amounts —.July 1, 2010
Valuation
(5's In thousands)
ray Be ft
20 -year Phase
-in
FIT
Pam rnts s Duc
(5 -years Fiarcl
") L -vem Ph ss • -i
10 -year Pl • -'n
F I1 P f ding
2011
,200
F J,^_-Oi)
S 12)in
$ 1,200)
^_072
1, 21)0
1,Y)')
1,400
1,4p0
3,(�1ti
^_013
1;:100
1,700
I ,C.0
1,7(Kl
3,000
2014
1,500
1,800
1,900
2,(KA
3,ow
2015
1,500
1,800
2.100
2,300
S,C4)ti
2!116
1,610
l,!X)U
2,400
2,606
3,rpn
3030
2;100
3,tii<ID
3,300
3 <,O0
2.;rn)
2tn_5
2600
4,100
'I.W)
3,?ti0
°,SOIi
3,300
4,201)
3,;01;
3;2pn
2,600
2035
800
0,700
A'ui
2(>i3
1AW
1, too
"OU
1,10o
2, 10i
203')
,1 t)(.)
gn0
200_)
(.1
0
2045
.1,200
100
i.)
0
0
- Full prefmtding mntrihutionsF
7.q)% disenunt rate.
- Pbose. -in cuutributio—
Discount. n fex graded f — 4.25% to 7.50% Deer phax in period.
" Payment_c in 1st 5 years
= benefit pnynum
fx + $1001( in year 1, $30071
in gems 2 - 5
24
25
26
PERS RATES
(EMPLOYEE + EMPLOYER RATE)
60.0
48.4
50.0
43.0 4 43.5 4
40.0
30.0 24.
30.0 30.9�24.32 .7 2. 2 28.5
CIVILIAN
20.0 18.7 E- SWORN
10.0
0.0
2005 2006 2007 2008 2009 2010 2011 2012
Enhanced retirements plans went into effect 7/1/2007
1654
FA
IMPACT ON PERS
RATE INCREASE
SWORN
$30,100
$53,045
1 $22,945
76%
CIVILIAN
$11,500
$ 20,955
$ 9,455
82%
NO. OF
EMPLY.x
FY 2006
COST
FY 2012
COST
INCREASE IN
PERS COST
SWORN
75.0
$2.2M
$3.3M
$1.1M
CIVILIAN
101.5
$1.2M
$1.9M
$0.7M
TAL
NOTE: FY2012 BUDGETED POSITIONS: 153.75
56
28
REVENUES IMPACTED
MOST BY RECESSION
PROPERTYTAX
$ `3.2M
$ 2.6M
(S0.6M)
SALES TAX
$ 7.7M
$ 6.1M"
($1.6M)
TOT
$ 1.9M
$ 1.7M
($0.2M)
INTEREST
$ 1.6M
$ 0.4M
($1.2M)
MVLF
$ 3.IM
$ 2.8M
$(.0.3M)`
TOTAL
$171SM
$lj6.M
-3 9
"DOES NOT INCLUDE MEASURE E REVENUE
ss
29
30
31
SALES TAX
9.0
7.9
8.0
7.5
7.0
6.0 7A 7.4
7:7 7.2
5.0
6.2 5.7 5.9 6.1
4.0
3.0
2.0
1.0
0.0
2005 2006
2007 2008 2009 2010 2011(bud) 2011(est)
NOTE: WITHOUT
MEASURE E, SALES TAX REVENUE IS
ABOUT $1.6
MILLION BELOW THE FY 2007 PEAK
61
31
INTEREST
TRANSIENT OCCUPANCY TAX
2.0
E �
�G
1.8
1.9
FY2011 EST: $0.4M
4.7 °�'
1.8
1.6
1.4
3.7'Vo
to
1.6
to
1.2
2.7 °/u
1.9 0/0
1.0 "la
2005 2006 2007
2008 2009 2010
1.0
64
0.8
0.6
0.4
0.2
2004
2005
2006
2007
2008
2009
2010
2011(bud) 2011(est)
NOTE:
TOT IS ABOUT $237K BELOW THE FY 2008 PEAK
63
INTEREST
RATES
E �
�G
FY2011 EST: $0.4M
4.7 °�'
LOSS: $1.211.1
3.7'Vo
3.2%)
INTEREST
RATES
PEAK: $16M
FY2011 EST: $0.4M
4.7 °�'
LOSS: $1.211.1
3.7'Vo
3.2%)
2.7 °/u
1.9 0/0
1.0 "la
2005 2006 2007
2008 2009 2010
- -Portfolio Yield
64
32
33
TP
33
DEPARTMENT EXPENSE
COMPARISON 2008 VS. 2011
25,000,000
...__
19 664 828
20,000,000
- __..
�� 15,535,000
15,000,000
...........
_ u� y
... _ ...........
9,073,105
10,000,000
7 291,065
si '
3,273,860
5,000,000
�
/� /f 2976 555
2,236,786
GENERALGOVT
PUBLICSAFETY PUBLIC RECREATION/PAC
WORKSIPARKS
$7.9M REDUCTION
IN EXPENDITURES
67
STAFFING LEVEL
200
1 190.75 $M REDUCED STAFFING
190"�''OJ LEVEL BY THIRTY -SEVEN
AUTHORIZED POSITIONS
180
�s178.5 X17 5
* 176.5
170 #--ACTUAL
- AU "I7lORIZED
164
160
\ 153.75
150 152.75
140
2006 2007 2008 2009 2010 2011
68
34
SEWER OPERATING FUND
■ AT THIS TIME:
Annual Revenue: $ 9.6 Million
Annual Expense: $12.0 Million
Annual Operating Deficit: ($ 2.4 Million)
■ AT THIS RATE, SEWER OPERATING FUND WILL
BE DEPLETED IN EARLY 2013
■ THE CITY COUNCIL REVIEWED THE PROPOSED
NEW SEWER RATE ON MARCH 8, 2011
69
SEWER OPERATING FUND
■ THE PUBLIC HEARING ON THE PROPOSED NEW
SEWER RATE IS SCHEDULED FOR MAY 10, 2011
■ IF LESS THAN A MAJORITY PROTEST, THE NEW
RATES WOULD GO INTO EFFECT JULY 1, 2011
■ THE SEWER OPERATING FUND WOULD THEN
BE SELF - SUPPORTING AND THE CITY'S SEWER
OPERATION WOULD BE SUSTAINABLE
70
35
STATE PROPOSAL TO ELIMINATE
REDEVELOPMENT AGENCIES
• Focus is shifting from elimination to reform
• Bills which include elimination of redevelopment are
still available for consideration
• If redevelopment is eliminated ...
— Reimbursement Agreement may be nullified
— Property Transfers may be invalidated
— General Fund could be required to reimburse state
for expenditures if legislation retroactive
IMPLICATIONS OF
REDEVELOPMENT ELIMINATION
Critical funding will be lost!
✓Capital projects will not go forward
✓Housing projects will be postponed
✓Funding in support of business and tourism will be
lost
✓Housing and homeless prevention programs will be
at risk
,/General fund will not be reimbursed for
administrative costs
36
STATUS OF REDEVELOPMENT
AGENCY
• State takeaway of $845,908 on May I 01
• CDC funds available to fund interfund obligations
• CDC has met its bonded debt service obligations
• Redevelopment Fund balance projected to be $1.2
million
• Availability of bond funds for projects and
programs:
— $ 4.9 million in redevelopment bond funds
— $13.3 in housing bond funds
CITY OF ROHNERT PARK
FISCAL HEALTH PLAN
37
FISCAL HEALH PLAN
OBJECTIVE
Achieve strong financial
condition &fiscal sustainability
SOLVENCY ACTION PLAN
1. Cash solvency
— Retain sufficient liquid cash for short term
expenditures
2. Budget solvency
— Reduce and /or eliminate structural budget
deficit
— Balance operational budget - expenditures
must not exceed revenues over normal budget
period
38
SOLVENCY ACTION PLAN
3. Longterm solvency
— Adopt fiscal policies that commit City to annually
set aside monies to buildup reserves
— Commit monies to fund unfunded liabilities such
as retiree medical
SOLVENCY ACTION PLAN
4. Service level solvency
— Fund replacement of capital equipment and
facilities
• Fund annual replacement of existing equipment &
facilities
• Fund what has been deferred
— Fund infrastructure
• Implement and fund pavement management system
• Replace aging utilities
39
FISCAL STRATEGY
• Address the structural deficit — expenditures
greater than revenues
• Identify and create new long term revenue
sources
• Adopt fiscal plan and policies
• Identify short and long term goals and priorities
• Establish restricted reserve funds to pay for
deferred maintenance and capital
improvements
GENERAL FUND RESERVE
■ GFOA RECOMMENDED MINIMUM LEVEL OF
RESERVE IS 10% OF TOTAL EXPENDITURES
■ THUS, CITY SHOULD HAVE S3M SET ASIDE FOR
ECONOMIC SWINGS AND CONTINGENCIES
■ THE CITY HAS DEPLETED THE GENERAL FUND
RESERVE
■ THE CITY HAS $3.9M IN GENERAL FUND CASH
ao
E
PROPOSED FISCAL POLICIES
Short Term Goals & Priorities
• Fund essential services
• Reduce operational budget
—Explore shared resource opportunities
• Identify and create new revenue sources
—Survey other municipalities & implement
successful measures
PROPOSED FISCAL POLICIES
Short Term Goals & Priorities
• Fund annual retiree medical contribution
• Fully fund reserves - using phased approach
over the course of the next several years
• Achieve balanced budget
• Move toward sustainable
benefits programs
41
PROPOSED FISCAL POLICIES
Long Term Goals & Priorities
• Reserves are fully funded
— 10 year process
• Sustainable employee benefit programs in
place
• Unfunded liabilities are fully funded
— annual and deferred
• Capital equipment and facilities replacement
program in place and underway
PROPOSED RESTRICTED RESERVE
FUNDS
• General Fund
• Capital Replacement
— (e.g., Vehicles)
• Facility Maintenance
— (e.g., Buildings)
• Infrastructure
— (e.g., streets, parks)
42
PROPOSED POLICY STRUCTURE
• If at year end there is an operating surplus
that exceeds $500,000, allocate excess funds
as follows;
— 50% carryover to contingency fund
— 50% distributed to restricted reserve funds
• 20% General Fund
• 10% Capital Replacement
• 10% Facility Maintenance
• 10% Infrastructure
CRITERIA FOR BORROWING OF
RESTRICTED RESERVE FUNDS
• No borrowing from restricted reserve funds except for
extraordinary circumstances
• Triggers for borrowing of restricted funds
— Natural or human -made disasters
— State budget takeaways
— Large, unexpected costs
— Economic downturns
• Borrowing requires 4 /5ths Council
vote
• Funds shall be replenished as follows;
— 50% following fiscal year
— 50% second fiscal year
43
QUESTIONS AND DISCUSSION
City of Rohnert Park - General Fund
Projected Contribution Amounts - July 1, 2010 Valuation
($'s in thousands)
Draft _
5/2/2011
'i1 -n n
No Prefunding 4.25%
20 -year Phase -in to Full Annual
15 -year Phase -in to Full Annual
10 -year Year Phase -in to Full
Full Annual Required
Contribution, 7.5% Interest Rate
.
Pre-
Required Contribution
Required Contribution
Annual Required Contribution
Assumption
Pre -
Draft _
5/2/2011
'i1 -n n
Benefit Pre-
Benefit
Pre-
Benefit
Pre-
Benefit
Pre -
Benefit
Pre -
FYE
Payments Funding
Total
Payments
Funding
Total
Payments
Funding
Total Payments
Funding
Total
Payments
Funding
Total
2011
$ 1,200 s -
S 1,200
S 1,200
s -
$ 1,200
S 1,200
$ -
s 1,200
$ 1,200
s -
S 1,200
S 1,200
$ -
S 1,200
2012
1,200 -
1,200
1,200
100
1,300
1,200
100
1,400.
1,200
200
1,400
.1,200
1,800
3,000
2013
1,400
1,400
1,400
300
1,700
1,400
300
1,600
1,400
400
1,700
1,400
1,700
3,000
2014
1,500 -
1,500
1,500
300
1,800
1,500
400
1,900
1,500
600
2,000
- 1,500
1,600
3,000
2015
1,500 -
1,500
1,500
300
1,800
1,500
600
2,100
1,500
800
2,300
1,500
1,500
3,000
2016
1,600 -
1,600
1,600
300
1,900
1,600
700
2,400
1,600
1,000
2,600
1,600
1,400
3,000
2017
1,700 -
1,700
1,700
400
2,200
1,700
900
2,600
1,700
1,200
2,900
1,700
1,300
3,000
2018'
- 1,800 -
1,800
1,800
600
2,400
1,800
1,000
2,900
1,800
1,400
3,200
1,800
1,100
3,000
2019
2,000 -
2,000
2,000
700
2,700
2,000
1,100
3,100
2,000
1,500
3,500
2,000
1,000
2,900
2020
2,100 -
2,100
2,100
900
3,000
2,100
1,300
3,300
2;100
1,600
3,600
,2,100
900.
2,900
2021
2,200 -
2,200
2,200
1,000
3,200
2,200
1,400
3,500
2,200
1,600
3,800
2,200
700
2,900
2022
2,300 -
2,300
2,300
1,200
3,500
2,300
1,400
3,700
2,300
1,500
3,800
2,300
600
2,900
2023
2,400 -
2,400
2,400
1,300
3,700
2,400
1,400
3,800
2,400
1,400
3,800
2,400
400
2,800.
2024
2,500 -
2,500
2,500
1,400
4,000
2,500
1,400
4,000
2,500
1,200
3,800
2,500
300
2,800
2025
2,600 -
2,600
2,600
1,500
4,100
2,600
1,400
4,000
2,600
1,100
3,700
2,600
100
2,800
2026
2,800 -
2,800
2,800
1,600
4,300
2,800
1,300
4,100
2,800
900
3,700
2,800
-
2,700
2027
2,900 -
2,900
2,900
1,500
4,400
2,900
1,100
4,000
2,900
700
3,600
2,900
(200)
2,700
2028
3,000 -
3,000
3,000
1,300
4,300
3,000
800
3,900
3,000
400
3,400
3,000
(400)
2,600
2029
3,200 -
3,200
3,200
1,100
4,300
3,200
600
3,800
3,200
100
3,300
3,200
(600)
2,600
2030
3,300 -
3,300
3,300
900
4,200
3,300
.400
3,700
3,300
(100)
3,200
3,300
(700)
2,600
2031
3,400 -
3,400
3,400
600
4,000
3,400
100
3,500
3,400
(400)
3,000
3,400
(900)
2,500
2032
3,500 -
3,500
3,500
400
3,900
3,500 -
(100)
3,400
3,500
(600)
2,900
3,500
(1,000)
2,500
2033
3,600 -
3,600
3,600
200
3,900
3,600
(300)
3,300
3,600
(900)
2,800
3,600
(1,100)
2,500
2034
3,700 -
3,700
.3,700
-
3,800
3,700
(500)
3,200
3,700
(1,100)
2,600
3,700
(1,300)
2,500
2035
3,800 -
3,800
3,800
(200)
3,700
3,800
(700)
3,100
3,800
(1,300)
2,500
3,800
(1,400)
2,400
2036
3,900
3,900
3,900
(300)
3,600
3,900
(900)
3,000
3,900
(1,500)
2,400
3,900
(1,500)
2,400
2037
4,000 -
4,000
4,000
(500)
3,500
4,000
(1,200)
2,800
4,000
(1,600)
2,400
4,000
(1,600)
2,400
2038
4,100
4,100
4,100
(700)
3,400
4,100
(1,300)
2,700
4,100
(1,700)
2,400
4,100
(1,700)
2,400
2039
4,100
4,100
4,100
(3,300)
900
4,100
(3,900)
200
4,100
(4,100)
4,100
(4,100)
-
2040
4,200 -
4,200
4,200
(3,400)
800
4,200
(4,000)
100
4,200
(4,200)
-
4,200
(4,100)
-
2041
4,200 -
4,200
4,200
(3,500)
600
4,200
(4,200)
-
4,200
(4,200)
-
4,200
(4,200)
-
2042
4,200 -
4,200
4,200
(3,700)
500
4,200
(4,200)
-
4,200
(4,200)
-
4,200
(4,200)
2043
4,200
4,200
4,200
(3,800)
400
4,200
(4,200)
4,200
(4,200)
4,200
(4,200)
}
2044
.4,200 -
4,200
4,200
(3,900)
300
4,200
(4,200)
-
4,200
(4,200)
-
4,200
(4,200)
-
2045
4,200
4,200
4,200
(4,000)
100
4,200
(4,200)
4,200
(4,200)
4,200
(4,100)
2046
4,100 -
4,100
4,200
(4,200)
-
4,200
(4,200)
-
4,200
(4,200)
-
4,100
(4,100)
Estimates for General Fund based on July 1, 2010 valuation data and assumptions, with interest rate assumption
modified for prefunding
results.
10, 15 & 20 year phase -in
result interest
rates graded
from 4.25% to 7.50% over 10, 15, and 20 years, respectively.
85% of July 1, 2010 valuation liabilities,
benefit payments, and normal cost assumed to pertain to General Fund.
July 1, 2010 Unfunded Actuarial Accrued
Liability
amortized
over closed 28 year period.
Contribution losses amortized over 15 years from beginning of next year.
(J
Draft _
5/2/2011
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