FYE 2016 Mid Year Budget Review City of Clearlake FYE 2016 Mid Year Budget Review

Clearlake Budget Policy 11/28/2018 Clearlake Budget Policy “The City Manager will provide the City Council with a mid-year review of the city’s financial activities. The review will be presented in February and compare annual budget projections with actual results.”

11/28/2018 Appropriations of fiscal resources are the responsibility of the City Council and the City Manager. Appropriations requiring City Council action are: appropriation of reserves, except replacement reserves; transfers between funds; appropriations of any unassigned revenues; and inter-fund loans. Appropriations requiring City Manager action are: transfers within a fund or department; appropriation of replacement reserves; and appropriation of unbudgeted assigned revenues.

Personnel - Budgeted vs Actual Positions 11/28/2018 Personnel - Budgeted vs Actual Positions 72% of the City Budget (non-capital projects) is spent on personnel. Staffing allocations and priorities should reflect the goals Employee staffing is extremely tight and at, or very near, capacity. Frequently, employees cover more than their positions. For example the Grants Technician frequently assists Community Development at the front counter. The ability to achieve identified priority goals is very much dependent on identified staffing.

Staffing Levels (FTE's) as of December 31 11/28/2018 City of Clearlake Staffing Levels (FTE's) as of December 31 Department/Area Budgeted Actual Difference Police 30.50 26.50 (4.00) Sworn 22.50 21.50 (1.00) Dispatch 5.00 2.00 (3.00) Non-Sworn 3.00 - Code Enforcement 4.00 Community Development 1.00 Public Works 7.50 Roads & Public Works 5.50 Parks Administration 6.50 General (CM/CC/Asst) 2.50 Finance Grants Engineer Totals 49.50 45.50

SHORT TERM STATE DROUGHT RELIEF WORKERS 11/28/2018 SHORT TERM STATE DROUGHT RELIEF WORKERS The State has contracted workers to the City, at State cost, to keep workers adversely impacted by the drought employed. Five workers have been allocated to Public Works and two have been allocated to administration. Workers are not counted toward staffing. The agreement will terminate in May of this year.

11/28/2018

Unbudgeted and Received Revenues 11/28/2018 Unbudgeted and Received Revenues Workers Compensation Reimbursement $ 88,765 Liability Insurance Reimbursement $ 6,244 Total Unanticipated Revenue $ 95,009

11/28/2018 Revenue Watch Estimated additional revenue adjustments based on actual receipts to date $ (15,500) Refunds to City $ 5,000 Vehicle Release Fees $ 75,000 Transient Occupancy Tax (42% increase) $ 10,000 Building Permit Fees $ 3,000 Senior Center Rental Fees $ 77,500 Net Revenue Watch

SIGNIFICANT BUDGET ADJUSTMENTS 11/28/2018 SIGNIFICANT BUDGET ADJUSTMENTS Five significant areas of adjustment since adoption of FYE 2016 Budget net of savings: ANIMAL CONTROL $ 34,268 COMMUNITY DEVELOPMENT 102,000 LEGAL FEES 83,075 ENGINEERING 39,067 PD Nixle Service 6,500 TOTAL $ 264,910

ANIMAL CONTROL FYE 2016 Animal Control adopted budget = $89,550 11/28/2018 ANIMAL CONTROL FYE 2016 Animal Control adopted budget = $89,550 ADD: Temporary Facility improvements = $10,333 New Kennels = $13,650 (Bond Funds) Temporary Kennel Tech = $5,300 Full Time Office Assistant = $19,988 LESS: Termination of SPCA saves $15,003 in FYE 2016 Adjusted FYE 2016 Animal Control Budget = $123,818 Net Change $34,268 Caveat: These are the temporary costs. The long run costs of Animal Control will be significantly higher. But will likely impact the FYE 2017 budget.

COMMUNITY DEVELOPMENT 11/28/2018 COMMUNITY DEVELOPMENT FYE 2016 Adopted Budget = $75,305 Add: Planning Assistance Gary Price $30,000 General Plan Gary Price $72,000 (B Bond Funds) Adjusted FYE 2016 Budget = $177,305 Net Adjustment $102,000

CITY ATTORNEY/LEGAL FEES 11/28/2018 CITY ATTORNEY/LEGAL FEES FYE 2016 Adopted Budget = $79,200 ADD: Contract Adjustment Jones & Mayer = $9,075 Litigation costs Misc.: = $15,000 Lit. Reserve (Non Jones & Mayer) = $59,000** Adjusted FYE 2016 Budget = $162,275 Net Adjustment $83,075 **Amount scheduled in current year. May not be spent this year, if at all.

ENGINEERING ADOPTED FYE 2016 Budget = $65,329 11/28/2018 ENGINEERING ADOPTED FYE 2016 Budget = $65,329 LESS: Contract Services Unused = $12,280 ADD: City Engineer/Superintendent = $51,347** Adjusted FYE 2016 Budget = $104,396 Net Adjustment $39,067 **Allocated as follows: City Engineer = 75% Public Works=12.5%/Roads=12.5%

Police Department – Nixle System 11/28/2018 Police Department – Nixle System During the recent emergency situations of the Rocky, Jerusalem, and Valley fires the ability of local emergency responders to communicate information to the public in a timely manner became obvious. Many surrounding jurisdictions have subscribed to Nixle as a fast and efficient system to provide such information. The County Sheriff and City of Lakeport subscribe to the system. The School district does not use Nixle, but has a similar mass notification system. The PD is recommending that Clearlake also subscribe to the system. The annual cost of the system for Clearlake is approximately $6,500 for unlimited usage.

Police Department Spending Rate 11/28/2018 Police Department Spending Rate

Net Adjustment Reconciliation 11/28/2018 Net Adjustment Reconciliation $ 95,009 Unbudgeted & Received Revenues $ 77,500 Revenue Watch $ 350,992 Estimated PD unspent funds $ 523,501 Total Available Funds for Budget Adjustments $ 264,910 Less: Reallocated/additional Spending $ 258,591 Net Unallocated Funds** $ 212,600 Allocate to Reserve Estimate (PD) $ 45,991 Unallocated

Designated Reserve Funds 11/28/2018 Designated Reserve Funds Revenue Reserve – Currently $257,132 with budgeted $50,000 addition by year end would increase to $307,132 (6.77% of GF) Equipment Replacement Reserve – $212,600 annual allocation to cover PD equipment expense. $293,100 to cover all Departments. Employee Benefit Reserve (To fund = $601,300.00) Capital Improvement Reserve (?????) Litigation Reserve (To fund = $150,000 RMR +) Community Fund Reserve (?????)

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11/28/2018 PD COMMUNICATIONS The Police Department operates two communications panels. These panels are the link between incoming calls to the police department dispatch and communications to and from the officers who respond to those calls. The panels perform other functions such as remote operation of the Saly-port doors. Currently one Panel is not operative and the other panel is significantly out of date and in very poor condition. The failure of the second panel will effectively break this critical link. Cost of Communications Panels approximately $47,000.

11/28/2018

PUBLIC WORKS Public Works is proposing to purchase the following: 11/28/2018 PUBLIC WORKS Public Works is proposing to purchase the following: 2 – 4X4 ½ ton pick-up trucks (either extended or Crew Cab). These trucks will cost approximately $30,000 each. 1 – Utility Dump Trailer at an approximate cost of $10,000 The current PW vehicles are old and the trailer is not a licensed trailer. The cost of these items will be funded via the accumulated balance in Fund 200 - Road Tax funds. There is an approximate balance in that fund of $580,000 which is sufficient to cover the $70,000 cost.

Estimated Annual Equipment Reserve Requirements 11/28/2018 Estimated Annual Equipment Reserve Requirements The estimated amount required to be set aside annually to fund required equipment purchases over time. $293,100 Police Department = $212,600 Public Works = $ 65,500 Administration = $ 5,000 Code Enforcement = $10,000

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