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HomeMy WebLinkAbout03-Budget Overview w Cl ;h rnw w- ::E~ f-w w> ClO o ::J lD , ~ I CITY OF SAN BERNARDINO CITY MANAGER'S OFFICE INTEROFFICE MEMORANDUM TO: The Honorable Mayor and Common Council FROM: Charles E. McNeely, City Manager SUBJECT: Fiscal Year 2009-2010 Adopted Budget Transmittal DATE: September I, 2009 I am pleased to present to the Mayor and Common Council the FY 2009-2010 Adopted Budget which was approved by the Mayor and Council on August 17, 2009. Reflecting the priorities and goals of the Mayor and Council, the Budget serves as a financial roadmap for the City. It is a flexible spending plan that determines the level and quality of municipal services to be provided to the community given the limited economic resources we have available. Backeround As you know, maintaining acceptable levels of municipal services in the face of devastating economic decline became the overriding theme of the FY 2009-2010 budget preparation process. The months that have passed since the fall of 2008 have been unprecedented with respect to manner and speed in which the City needed to respond to changing financial conditions. The stock market incurred record losses, housing values experienced steep declines, the foreclosure rate skyrocketed and unemployment rates dramatically escalated. The State of California wrestled with a multi-billion dollar deficit and passed some of their financial burden on to local government with the suspension of Proposition IA. Sales tax, until this year the City's largest source of General Fund revenue, has decreased by over $10 million compared to FY 2005-06 levels. The national, state, and regional economy is still volatile and unstable. No one can be sure of the duration or depth ofthe present decline. In response to this economic tailspin, the City began a series of meetings with the Mayor and Council in January to begin addressing a projected deficit of $9 million in FY 2008-09 and (if no measures were adopted) a projected deficit of approximately $19.8 million for FY 2009- 2010. At the February 17, 2009 Council Meeting a number of expenditure reductions, employee concessions, and revenue enhancements, as well as use of $5,278,900 in General Fund reserves, were approved by the Mayor and Council to eliminate the FY 2008-09 projected deficit of $9 million. The proposals presented by the interim City Manager at that time and approved by the Mayor and Council on February 17, 2009 also carried into FY 2009-2010 and it was hoped they would prevent a deficit situation of approximately $19.8 million. Unfortunately, after receiving more bad news primarily regarding sales tax combined with a delay in implementing some employee concessions and budget strategy proposals, it was estimated in the FY 2009- 2010 Preliminary Budget that the City would end FY 2009-2010 with a deficit of $6,089,100. It is at this point that I was appointed City Manager and we began our work to eliminate this remaining deficit of $6,089,100. Preliminary to Adopted FY 2009-2010 Hudeet As previously stated, the Preliminary Budget presented an estimated deficit of $6,089,100. However, when the Preliminary Budget document went to press, we were notified that the last group to finalize a concessions agreement with the City, the Fire Union, had agreed upon a package that is estimated to result in savings to the City of approximately $1.3 million. So, the estimated deficit was reduced to approximately $4.7 million, a more manageable number than $6 million, but still challenging. In June I began a series of budget workshops with the Mayor and Council to address this $4.7 million deficit. The workshops continued until mid August when a balanced budget was finally adopted. During these workshops we discussed the financial crisis facing the nation, state, and City, and what this crisis means for the City. We also presented a number of budget balancing options that were ultimately approved by the Mayor and Council and are summarized in attachment "A" to this transmittal. The primary elements of the approved budget savings actions included expenditure reductions, transfer of eligible projects from the General Fund to other City funds, and short-term borrowing from the City's Economic Development Agency. Preparation for the Future In my first few months here I have come to realize how ill-prepared the City was for the sharp economic downturn that occurred. General Fund reserves are insufficient and almost non- existent. Personnel costs continue to rise due to City Charter requirements and unfunded pension obligations. Because the City has had to make many difficult decisions in the past to keep the City running, little or no funding has been set aside for equipment and facility repair and/or replacement, or infrastructure improvements. Eighty-seven (87) full-time positions were eliminated when the FY 2008-09 Budget was adopted, and then again during mid-year of FY 2008-2009, another ninety-six (96) full-time positions were eliminated; we are struggling to maintain service levels with a greatly reduced workforce. And, we find ourselves in a week borrowing position; as the 2007 Management Partners' organizational study emphasized, the City's "financial condition is fragile." As we discussed during our workshops in June, July and August, we need to begin preparing now for FY 2010-2011. We will look at many revenue generating options including: citywide landscape and maintenance districts, increase in property transfer tax, library tax, paramedic tax, a 911 tax/fee, and opportunities for capitalizing on our Integrated Waste Management operation. We will also continue to explore the operational efficiencies outlined in the 2007 Management Partners' study and I will be bringing forward in the near future a plan to explore the consolidation of many of the City's functions - some of them requiring charter changes and others just policy alterations. ii Conclusion The issues touched upon above will challenge us all in the coming months and years as we (elected officials, staff, and the community) work together to move our City forward. By using a long-range view and taking proactive and creative steps to confront these obstacles, I am confident that working together as a team we can move this City forward to a stronger financial future with greater resources to improve the quality of our services to the residents of San Bernardino. As the author Norman Vincent Peale said: "Empty pockets never held anyone back Only empty heads and empty hearts can do that. " Directly following this transmittal is a detailed overview to the budget document. The overview summarizes changes in revenues, expenditures and transfers for the General Fund, Special Revenue Funds, CIP Funds, and Internal Service Funds. The Budget Overview also serves as a guide to the budget document. I wish to thank the Mayor and City Council members for their hard work and determination in setting policy direction for the City. 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The Budeet Document The FY 2009-2010 Budget document provides two important benchmarks to assist in prioritizing the City's responsibilities and goals. First, the document presents to you the cost of providing services to the community. Second, the document provides you with estimated funding resources available, given the current economic outlook, legal restrictions, and availability of state and federal funding sources. Again this year the document contains descriptive information regarding the various city departments and their divisions. It also includes summarized information regarding proposed departmental expenditures for FY 2009-2010. The document also outlines recent departmental accomplishments and lists proposed departmental goals for FY 2009-2010. Provided for you in the section entitled Budget Summaries, is summarized information regarding revenues, expenditures, transfers, and staffing levels. The section entitled Community Profile provides background and historical information about the City. The Budget Glossary section provides definitions of financial and governmental terms comrnonly used during the budget process. There are also the usual sections regarding line-item expenditure detail, grants, capital projects, debt service, and assessment districts. GENERAL FUND OVERVIEW At the June 4th meeting of the Mayor and Common Council, the FY 2009-2010 Preliminary Budget was presented with a total projected budgeted shortfall of $6,089,100. After the Preliminary FY 2009-2010 budget document was printed, the City and Fire Union completed negotiations for employee concessions which lowered the estimated deficit to $4,773,300. Based on the meetings with the Mayor and Council in June, July, and August, various options and ideas were explored to bring the FY 2009-2010 projected General Fund budget into balance. The proposed FY 2009-2010 final budget is now balanced, despite a number of factors that adversely impacted the General Fund. The strong revenue growth that had been seen over the last several years, particularly in sales tax, property tax, and development fee revenues, has peaked, and many key revenues are now projected to be stagnant or decline; the most significant decline being in sales tax. Sales tax revenue in past years has been the General Fund's largest revenue source but with the steep decline in the economy this is no longer true. Sales tax revenue since FY 2005-2006 has been on the largest decline ever experienced by the City with the FY 2009-2010 proposed budget being the lowest estimate in over 10 years. In FY 2005-2006 the City received $28,371,610 in regular sales tax revenue and now for FY 2009-2010 the estimate is only $17,757,200, a decline of about $10,600,000 in 4 years. vi With the exception of the items discussed below, it should also be noted that the proposed FY 2009-2010 budget includes no significant requests from departments for additional expenditures. Total FY 2009-2010 General Fund expenditures are budgeted at $136,993,600. Total deductions to the General Fund, including anticipated expenditure savings of $900,000 and transfers-out of $2,497,500 are projected to be $138,591,100. This is a $10,568,800 decrease over the FY 2008-2009 Adopted Budget. This reduction is primarily due to the expenditure reductions approved by the Mayor and Council on 2/17/09. Deletion of approximately ninety-six (96) positions and estimated ernployee concessions of $7 million offset an estimated deficit of $9 million in FY 2008-2009 and reduced an estimated FY 2009- 2010 deficit of approximately $19 million to approximately $4,773,300. Adding to the City's budget deficit were the measures included in the State's budget. On July 20th the State Legislature reached agreement on a budget plan to eliminate the State's projected deficit of $26 billion and on July 28th, 2009 Governor Schwarzenegger signed the FY 2009-2010 State Budget. Unfortunately, a significant portion of the State's final budget package relies on local funds to balance the State's deficit. The State will "borrow" 8% of property tax from local governments ($1.935 billion in total) and $2.05 billion in local redevelopment funds ($1.7 billion being taken in FY 2009-2010). For the City, this translates into a loss of $2,938,300, bringing the projected deficit to $7,711,600 (before factoring in proposed budget actions.) Chanees from FY 2008-09 Preliminary to Adopted Budeet: Described below are the actions that the Mavor and Council approved as Dart of adoDtine the FY 2009-2010 Budeet: 1.) Remove Continf!encv for potential health insurance premiums - $350.000 During preparation of the FY 2009-2010 Preliminary Budget, the Human Resources Department (HR) indicated that the City's cost for providing health insurance benefits to its employees could increase by as much as 10%. Since then, HR has initiated negotiations with the City's health insurance providers to address costs and is confident that through some modifications to our plans (for example higher co-pays) costs can be contained to similar levels as FY 2008-09. 2.1 Increase over budf!eted amount for Police JAG f!Yant - $160.000 At the time the FY 2009-2010 Preliminary Budget was prepared the amount of the JAG grant was expected to be at the same level as the FY 2008-2009 amount. However, in early June we learned that the amount ofthe grant would actually be $160,000 more than what had been included in the Preliminary Budget document. 3.) Delete General Fund contribution to vehicle replacement fUnd - $150.000 Each year included in the General Fund budget is a contribution to the Fleet Fund for future purchases of vehicles for General Fund Departments. For the last 3 years this amount has been $300,000. Included in the FY 2009-2010 Preliminary Budget was $150,000. With this action the amount will now be $0. vii 4.) New revenue - Delman Heif!hts lease af!f'eement with Countv Head Start - $23.000 After the Preliminary FY 2009-2010 Budget document was printed, the Parks and Recreation Department reached a tentative agreement with the County for the County to take over the management of the Head Start program with net additional revenue to the City of approximately 23,000. The additional revenue is a result of the County continuing to operate the Head Start program at the Delman Heights site and paying the City for use of the site. A detailed item will be brought to the Mayor and Council for approval in July of2009. 5.) Shiff elif!ible Gas Tax vroiects to CDBG Stimulus funds - $375.000 As a result of President Obama's American Recovery and Reinvestment Act (ARRA), the City was allocated an additional $951,548 in CDBG funding. By using a portion of this money to fund the Speicher Park skate project ($500,500) and ADA projects ($451,000), the City has freed up Gas Tax monies to be used to fund General Fund street obligations. It should be noted that the Speicher Park and ADA projects are not being cancelled or delayed; only the funding source for these projects is changing. 6.) Shiff slurry seal vroiects trom Gas Tax - $250.000 The $250,000 of slurry seal funds that were going to be paid from Gas Tax were shifted to Measure I Funds in the Half Cent Sales Tax Fund, thereby allowing the transfer from the Gas Tax Fund to the General Fund to be increased by $250,000. The FY 2009-2010 CIP includes a total of $606,600 between carryover and new allocated Measure I Funds to do slurry seal projects in FY 2009-2010. This will actually allow more funds to be allocated to slurry seal projects than was allocated in FY 2008-2009. Developrnent Services and Public Services will finalize the proposed list of slurry seal projects to be done in FY 2009-2010 and will distribute the list when it is completed. 7. ) Reduce Contract Street Strivinf{ - $200.000 The reduction in striping of $200,000 will not have significant effect on CIP projects, as the mill and overlay projects have the striping cost built into the total amount budgeted for each project. All remaining striping and re-striping of the City's streets will be reduced to work orders generated from Engineering and only the locations with faded or missing striping will be re-striped. $100,000 remains in the General Fund budget for contract street striping. 8.) Reduce Estimate for Ch. 186 increases - $200.000 During the budget preparation process, Human Resources estimated that FY 2009-2010 costs related to Ch. 186 increases (General Fund only, not Measure Z) would be approximately 4% higher than FY 2008-2009 actual costs. However, given the current economy and that FY 2008-2009 Ch. 186 costs were higher than normal, it is recommended that the estimated increase for FY 2009-2010 be lowered by approximately $200,000. 9.1 OffSet Librarv costs with transfer trom Cultural Develovment Fund - $200.000 A review of eligible uses of funds in the Cultural Development Fund indicates that some Library costs related to the "California Room" could be offset with Cultural Development funds, thereby reducing the amount needed from the General Fund to subsidize the Library Fund in a corresponding amount. The California Roorn houses historical and informational materials about the City and County of San Bernardino, the Inland Empire and the State. viii There is no other facility in the area that maintains such a complete history of the area. Included in the collection are materials related to historical homes, farms, railroads, lakes, springs, businesses, lost buildings, roads, wildlife, and residents. 10.) Reimburse Devartments for svecial event costs wi Cultural Develovment. funds- $100.000 For many special events held in the City (parades, Route 66, etc.) City Departments incur overtime and other related costs when providing support for the functions. Many times departments are required to fund these costs through their existing General Fund budgets when these costs could be offset with Cultural Development monies, saving the General Fund approximately $100,000. 11.) Use Fleet Fund excess balance to offset Police Devt. vehicle maintenance costs - $100.000 It is projected that the Fleet Fund will have an unallocated fund balance of approximately $364,700 at June 30, 2010. For FY 2009-2010 it is suggested that $100,000 of this available fund balance be used to fund costs related to maintenance ofthe Police Department's vehicles. 12.) Use Fire Chief's vrovosed manaf!ement reorf!anization - $223.000 As part of the Fire Department's requested contribution toward balancing the City's budget, the Fire Chief proposed a reorganization of the Fire Department's Management staffing which was recently approved by the Mayor and Council at the 8/3/09 Council Meeting. This reorganization, which calls for the deletion of an Administrative Training Captain and Battalion Chief position, will save approximately $223,000 in FY 2009/1 0 and approximately $279,000 annually in subsequent years. 13.) State Loan Pro '{ram to offset Prov 1A Takeawav - $2.938.300 On July 28th, 2009 the Governor signed into law ABx4 15 authorizing the State to "borrow" 8% of local property tax due to cities. This equates to a loss of$2,938,300 in property tax to the City of San Bernardino. The legislation also mandates that the State repay cities the full amount borrowed plus interest by June 30, 2013. The legislation also authorizes cities and other local agencies to sell this repayment commitment (or "Prop. IA Receivable") to California Communities, a JPA sponsored by the League of CA Cities and the CA State Association of Counties (CSAC). In turn for selling our "Prop IA Receivable" the City would receive an upfront payment of the amount the State borrowed, $2,938,300. In the near future California Communities and the League of CA Cities will provide information on how the City can participate in this program. 14.) Shift elif!ible street maintenance costs to available Measure I fund - $500.000 At the time the Preliminary CIP was prepared it was unknown whether or not the State would raid the City's Gas Tax funds. If the State were to take the City's Gas Tax funds projects that were budgeted in the Gas Tax Fund would have had to been shifted to other funding sources, including Measure 1. Now that we know that is not the case, it is recornrnended that the remaining available balance in Measure I be used to offset General Fund street maintenance costs. ix 15). Eliminate cost budzeted for TRAN - $100.000 Included in the Preliminary FY2009-201O budget was approximately $117,800 (expenditures net of revenues) related to the City's participation in the issuance of a pooled "Tax Revenue Anticipation Note," or TRAN. TRANs allow local governments to borrow funds on a short- term basis for anticipated cash flow deficits. Unfortunately, the statewide JP A offering the TRAN was not able to sell the bonds due to the States precarious budget situation. It is proposed that $100,000 of the savings be used to balance the City's budget and the remaining $17,800 be used for any costs associated with the State Loan Program discussed above. 16.) Postvone vurchase of eauivment with Gas Tax Funds. shift funds to street maintenance- $85.000 Development Services had proposed in the CIP to use $85,000 of Gas Tax Funds to purchase Office Software and Design Equipment Updates (AutoCAD, Office 2007, and Plotter). But these purchases can be postponed and the savings can be utilized to offset General Fund street maintenance costs. 17.) Shift Police evidence fund costs & undercover vehicle maintenance costs to Asset For( - $48.600 In prior years when Asset Forfeiture had available funds, the cost to repair undercover vehicles and the funding for the evidence draw down account was budgeted in the Asset Forfeiture Fund. In more recent years, the General Fund has picked up these costs, but now that the Asset Forfeiture fund has a large available balance it is proposed to shift these costs back to the Asset Forfeiture fund. 18.) Use Police DIFF monies to offset a vortion of vatrol car lease vavments - $200.000 $265,000 was included in the Police Department's preliminary FY 2009-2010 budget for the debt service payment on the recent purchase of28 new patrol cars. Approximately $227,000 is available in the Police Department's mFF so it is recommended that $200,000 of this available balance be used to offset the patrol car debt service payment. 19.) Increase exvenditure savinzs zoal- $200.000 Included in the Preliminary FY 2009-2010 budget are estimated expenditure savings of $700,000. By delaying filling of vacant positions and continuing to obtain 5% reductions when possible from City contractors it is estimated that savings will increase by $200,000. 20.) Short Term Loan from EDA - $1.308. 700 The City and EDA have reached a tentative agreement that would allow the City to borrow funds on a short term basis. The funds would be drawn down as needed up to $1,308,700. Repayment terms negotiated between the City and the Agency include repayment of the full $1,308,700 (including interest) from the City to the Agency at the end of one year, with the option for two I-year extensions with Council approval. As soon as the 09/10 budget is adopted, staff will begin work on the revenue enhancements and efficiency measures that have been presented to you during budget deliberations. Implernentation of these measures will ensure timely repayment to EDA. x Other Chanf!es Included in the FY 2009-2010 Final Budf!et: Citv Attornev's Office - Per the direction of the Mayor and Council, the City Attorney's budget has been increased by $469,000. This increase is for outside attorney costs. Council Office - At the July 20th, 2009 Council Meeting (item #19A) the Council approved restoring funding to the Council budget for the position of Council Administrative Supervisor. The estimated cost of$71,900 will come from the General Fund's fund balance and will result in a decrease to the General Fund's budget reserve. Citv Manaf!er's Office - At the July 20th, 2009 Council Meeting (item #18) the Council approved the recently appointed City Manager's proposal to reorganize the City Manager's Office. Partial funding was included in the Preliminary Budget and the additional cost to fully implement the reorganization is approximately $158,100. The $158,100 will be funded from the following sources so that there is no net increase to the General Fund for this reorganization: Estimated Additional Cost ($158,100) Contribution from SBET A Contribution from the Mayor's Office Budget Contribution from IWM/Environmental/Recycling funds Contribution from the Police Department (Asset Forfeiture funds will replace PO funding used for reorg.) Total Funding $50,000 $40,000 $30,000 $38.1 00 $158,100 Parks & Recreation - On June 151h, the Mayor and Council approved the Director of Parks and Recreation's plan to reinstate eleven (11) positions that had previously been deleted as part of the budget balancing measures approved on February 17,2009. This plan has been incorporated into the proposed final budget and has also resulted in additional projected savings to the General Fund of $25,100. This approved plan also generated savings in the Soccer Fund. Because of this savings and a better than expected ending fund balance in the Soccer Fund, the part-time staff budget was increased by $20,000 to maintain the staffing level needed to run Soccer Fund operations effectively. Facilities Manaf!ement - As first discussed and presented to the Mayor and Council at the June 4th Budget Meeting, funding for the position of Director of Facilities Management has been reinstated in the budget. This position had previously been deleted as part of the budget balancing measures approved on February 17, 2009. For FY 2009-2010 it is recommended that this position be funded with excess fund balance in the Utility and IT funds. It is anticipated that the Director of Facilities Management will now assume temporary oversight of the IT Department and Animal Control operations. Code Comoliance - With full implementation of Code's citation program in place, the Code Compliance Department estimates that revenues from Code Administrative Citations will be approximately $65,000 higher than projected in the Preliminary FY 2009-20 I 0 Budget. It is recommended that this additional revenue fund the part-time Code Compliance Director position for FY 2009-2010 until a full assessment of the City's organization structure can be completed by the City Manager. xi General Fund Budeeted Reserve The City has been working to establish, at a minimum, a General Fund budgeted reserve equal to 10% of the total General Fund budgeted deductions. Based on the Adopted FY 2009-2010 General Fund budget of $138,993,600 (includes transfers out) a 10% reserve would be about $13.8 million. Assuming the reserve is not used during the course of FY 2009-2010, the budget reserve included in the FY 2009-2010 budget is $2,280,600. Below is a reconciliation of the General Fund (including Measure Z) budgeted reserve from the FY 2008-2009 Adopted Budget to the FY 2009-2010 Adopted Budget: Total Budaet Reserve in FY 2008-09 Adopted Budaet Contribution to reserve w/Caltrans $$ for Fire Repair Facility Contribution to GF - MZ reserves additional FY 08 savings Contribution to GF reserves additional FY 08 savings Contribution for cell tower agreement net revenue Use of GF-MZ reserves helicopter Use of GF-MZ reserves helicopter Use of GF reserves Increased cost of Ch. 186 Use of GF reserves Delman Heights Security System Use of reserve-City Attorney per M&CC 9/5/08 Use of reserve-City Attorney per M&CC 1/5/09 Total BUdgeted Reserve in FY 2008-09 Finance Mid- Year 08-09 Report Total Budgeted Reserve in FY 2008-09 Finance MN Report Adjustment for revenue loss net of expenditure savings (MN 08-09) Revised estimate of Budget Reserve in FY 2008-09 Finance Mid-Year estimate Revised estimate of Budget Reserve in FY 2008-09 Finance Mid-Year 08-09 Report Use of G.F. reserves to balance budget per M&CC 2/17/09 Use of G.F.-MZ reserves to balance budget per M&CC 2/17/09 Use of G.F. tow fee set aside reserves per M&CC 2/17/09 Projected Budget Reserve for FY 08-09 after 2/17t09 cuts Projected Budget Reserve for FY 08-09 after 2/17/09 cuts Contribution to budgeted reserve (additional savings FY 08-09) Use of GF reserve for Fire Repair Facility (Caltrans $$) Budgeted Reserve in FY 2009-2010 Preliminary Budget Budgeted Reserve in FY 2009-2010 Preliminary Budget Use of budget reserve to restore a Council Office position Additional savings from Parks reorg. approved 6/15 Use of budget reserve in lieu of tow program net revenue Budgeted Reserve in FY 2009-2010 Adopted Budget xii $ 7,118,100 $ 630,000 $ 889,600 $ 943,100 $ 9,100 $ (121,700) $ (278,000) $ (226,900) $ (21,700) $ (56,700) $ (200.000) $8 ,684,900 $ 8,684,900 $ (399,500) $ 8,285,400 $ 8,285,400 $ (4,950,000) $ (205,800) $ (123,100) $3,006,500 $ 3,006,500 $ 434,300 $ (630,000) $ 2,810,800 $2,810,800 ( $ 71,900) $ 25,100 ($ 483,400) :lii~!l.O;l?llq The estimated budgeted reserve at 6/3011 0 of $2,280,600 consists of the following designations: Total Budaet Reserve in FY 2009-2010 Budaet General Budget Reserve $ 673,400 Development Services Technology Fee $ 96.900 $ 1,510,300 Reserve related to Admin Civil Penalties Budgeted Reserve in Adopted FY 2009-2010 Budget 1$"2;280:600 General Fund Revenues Total budgeted General Fund revcnues for FY 2009-2010 (not including loan proceeds) are projected to be $122,641,900, which includes $6,100,000 in revenue from the Measure Z District Tax. Included in the revenue estimates for FY 2009-2010 is $648,800 in new revenue estimated to result from the recently approved fee increases by the Council. Also included in various Code, Fire, City Clerk, and Development Services revenues are the recently adopted Administrative Civil Penalties (ACP's). Combined for all departments, ACP's are expected to bring in approximately $821,300 in FY 2009-2010. Even though fee increases were approved, an overall decline in revenues is still expected in most of the major revenue categories. This decline is the result of the poor economy we are still experiencing today. The most significant revenue reduction is in the area of sales tax. Below is a brief discussion of some of the major revenue changes for FY 2009-2010. Property Taxes - The category of Property Tax overall (not including "Property Tax in Lieu of VLF") is expected to have a net decrease of $918,000 over FY 2008-2009 estimated revenues. Base current secured property tax revenues are projectcd to decrease over the current year's estimated amount by $678,000 to a total of $10,622,000. The County's Property Tax Division has notified the City that the Assessor is projecting a 6% decrease in the countywide tax roll for FY 2009-20 10; this assumption has been assumed in the budget. Also assumed is about a 6% reduction in the current unsecured property tax revenue for FY 2009-20 10. With many properties going into foreclosure we have also cstimated that Prior Taxes and Supplemental Property Taxcs will see a decline in FY 2009-2010. It should be noted that the latest information from thc State is that, under the provisions of Proposition IA (approvcd November 2004) they are considering taking a Property Tax Loan from each City with the provision that they will repay the loan to cities within three years with interest. If this proposal is approved the City of San Bernardino would have a potential loss in Property Tax revenue of approximately $3 million. Because it is unknown at this time what action the State will take, this potential reduction has not been factored into the City's preliminary budget. Property Tax In Lieu of VLF - In FY 2004-2005 the League of California Cities and the Governor of California came to an agreement on how cities would financially assist the State to balance their budgct. Beginning in FY 2004-2005 the State's xiii payment to cities for both the VLF "backfill" and the R&T Sec 11005.7 revenue was eliminated and replaced with the "Property Tax In Lieu of VLF" revenue. Growth to this new revenue corresponds with growth/decrease in property values within the City. Accordingly, for FY 2009-2010 a $500,200 decline related to property values has been included in this revenue estimate. Sales Tax - Sales tax revenue in past years has been the General Fund's largest revenue source but with the steep decline in the economy this is no longer true. Sales tax revenue since FY 2005-2006 has been on the largest decline ever experienced by the City with the FY 2009-2010 proposed budget being the lowest estirnate in over 10 years. In FY 2005-2006 the City received $28,371,610 in regular sales tax revenue and now for FY 2009-2010 the estimate is only $17,757,200, a decline of about $10,600,000 in 4 years. PrODertv Tax In Lieu of Sales Tax - As part of the FY 2003-2004 State Budget, Proposition 57 (the "State Fiscal Recovery Funding Mechanism") which approved State issued bonds was approved. Proposition 57 mandated that beginning in FY 2004-2005 cities would give the State Y, cent sales and use tax revenue in exchange for a new revenue called "Property Tax In-lieu of Sales Tax" revenue. This new revenue grows each year in proportion to each jurisdiction's sales and use tax revenue. However, the new account growth lags behind sales tax growth by about a year. Because this new revenue is tied to sales tax, it is considered a subset of sales tax revenue. According to the State, this arrangement is temporary and should last only 7- 10 years. When the State pays the bonds in full in 7 to 10 years, the actual regular sales tax should transfer back to cities. For FY 2008-2009, we expect to receive $6,520,300 from this revenue source. Netted in this amount is a repayment by the City to the State of$I,019,455 for FY 2007-2008. The State Board of Equalization determined that the estimated payment to the City for FY 2006-2007 was not correct and therefore the City was required to make a "true-up" payment to the State. With the continued decline in Sales Tax there most likely will be another "true-up" payment owed by the City for FY 2008-2009 that will have to be paid in FY 2009-2010. Based on this, it is estimated the City will receive $6,531,100 in Property Tax In Lieu of Sales Tax in FY 2009-2010. Utility User Tax - UUT revenue is projected to be the same as the FY 2008-2009 estimate. This is the City's one revenue source that has not experienced a decline in collections due to the economy. Rate increases by utility companies has helped keep this revenue source at a constant level. The City making modifications to its UUT ordinance has also helped stabilize this revenue source. Measure Z - District Tax - This revenue source was approved by the voters and began in April 2007. FY 2007-2008 was the first full fiscal year of this revenue, so without much of a history, estimating this revenue source accurately was difficult. Based on additional analyses and information provided by the City's sales tax consultants, it is estimated that the City will only receive $6,150,000 in FY 2008-2009 xiv which is about $900,000 less than what was originally estimated in the budget. For FY 2009-2010 it is estimated this revenue will again have a decline down to $6,100,000 due to the state of the econorny causing many retailers to go out of business. Business Reeistration - Business Registration revenue is estimated to be approximately $6,500,000 in FY 2008-09. Because of the success the City Clerk's Office is seeing with increased audits, penalties, and the Single-Family Inspection Program, Business Registration revenue for FY 2009-2010 has been increased to $6,600,000. Licenses and Permits - For FY 2008-2009, the net revenue from items within this category is expected to be approximately $527,200 less than budgeted. So, revenue estimates for FY 2009-20 I 0 have been adjusted for this decline and are budgeted at $9,540,500. Motor Vehicle In Lieu Fees (vLF) - VLF revenues are projected to be only $640,000 for FY 2008-2009, which is $160,000 less than originally budgeted. Based on information recently received from the State, the estimate for FY 2009-2010 has been increased to $725,000. EDA & CDBG - FY 2009-2010 reimbursements from EDA are budgeted approximately $579,000 less than estimated actuals for FY 2008-2009. The major change is the shift of CATV to EDA. In FY 2008-2009 the plan was to keep CATV under the City's budget but bill EDA for reimbursement of $350,000. In FY 2009- 2010, EDA will directly take over operation of CATV, so the revenue reimbursement of $350,000 has been deleted and expenditures in the City's budget related to operation of CATV have also been deleted. Mutual AidlDisaster Reimb. - In FY 2008-2009 the City had an unusual amount of requested mutual aid calls for which the City was reimbursed ($1,000,000). For FY 2009-2010 it is anticipated the City will not have as many requested mutual aid calls and therefore the estimate for this revenue account has been reduced to reflect more of a historical average. $700,000 has been budgeted in Mutual Aid/Disaster Reimbursement for FY 2009-2010. Charees for Seryice - The FY 2009-20 I 0 projection for this category is approximately $1,651,400 higher than expected FY 2008-2009 receipts. The major factor contributing to this increase is related to the Single-Family Rental Inspection Program (SFRIP). Now that the Single-Family Rental Inspection Program (SFRIP) is up and running, revenues for a full year of operation are expected to be $982,000; approximately $722,200 higher than FY 2008-2009 projections. xv Otherwise, for the most part, FY 2009-20 I 0 revenues in the category of "Charges for Services" have been budgeted at FY 2008-2009 levels. Construction activity in the City of San Bernardino is projected to remain sluggish again in FY 2009-2010. Use of Monev & ProperlY - This category is approximately $1,282,500 less than expected FY 2008-09 levels. The primary reason for this is that in FY 2008-09 the City received approximately $1.4 million from the sale of the Fire Department's repair maintenance facility to Caltrans related to the 215 freeway widening project. $810,000 of this was use to balance the City's budget and the remainder is budgeted for the purchase of a new facility property and related renovation costs. Miscellaneous - Revenues for this category are budgeted overall at the same level as FY 2007-2008. One-time revenue of $238,400 expected in FY 2008-09 as part of the City Manager's Budget Strategy (sale of sewer credits to Water Department) will not be received again in FY 2009-20 I 0, so the revenue estimate has been adjusted downward accordingly. LNG/CNG Fuel Rebate - This item was part of the City Manager's Budget Strategy and was estimated to bring the General Fund approximately $262,000 in revenue. However it has been determined that this revenue needs to be credited back to where the expenditure occurred, which is primarily Refuse. General Fund Expenditures Total FY 2009-2010 General Fund expenditures are budgeted at $136,993,600. Total deductions to the General Fund, including anticipated expenditure savings of $900,000 and transfers-out of $2,847,500 are projected to be $138,591,100. This is a $10,568,800 decrease over the FY 2008-2009 Adopted Budget. This reduction is primarily due to the expenditure reductions approved by the Mayor and Council on 2/17/09. Deletion of approximately ninety- six (96) positions and estimated employee concessions of $7 million offset an estimated deficit of $9 million in FY 2008-2009 and, if no measures were taken, a deficit of approximately $19 million in FY 2009-2010. Summarized below are the cuts as they were presented; items highlighted are items with significant changes or issues: FY 2009/10 Department Program Position/Notes Annual Savingsl Revenue (based on 2/17/09 proposals) ,,-, H , , ~ , ~'."""~'l1.:<<~..._~,;;;;"".:<o."':;""'-"l:i-4"\'f~ ":~- ,j'- .~~<~'~. ,- Ail depts Eliminate employee tuition n/a $ 18,000 reimbursement proqram All depts Reduce budget for supervisory n/a $ 12.500 training by 50%; increase class sizes and reduce # of sessions Animal Control Eliminate contract services for n/a $ 125.089 ~:ighbor Cit~~s; reduce staffing net savinns xvi City Attorney Attorney to charge EDA for $ 305,500 Services, revenue enhancement of $305,500 Code Eliminate Director of Code Director of Code $ 219.530 Enforcement Comnliance Comoliance Code Reduce Code enforcement Senior Code $ 90,331 Enforcement staffina Comoliance Officer Code Reduce Code enforcement . (lfCode $ 143,552 Enforcement staffing Enforcement OlIicer II & (1) Adminlslr8tive Assislall~Jo;IianQed' from original proposal to delela,(2) Code Compliance OIIicer 1I'.,d~:=~~CY in clerical, ion Code Revise Muni Code to eliminate Not IncI,UOid'in $ 235,274 Enforcement certified mailings - reduce Preliminary -under mailina costs review Development Reduce Planning Division OS Tech: Associate $ 289.001 Services staffing Planner (2); Assistant Planner Development Reduce Building Services Building Inspector I $ 225.360 Services Division staffing (2); Building Inspector II Development Reduce Plan Check section (2) Plans Examiner II $ 176,700 Services staffing Development Reduce NPDES section staffing Construction Inspector $ 31,670 Services 1150%) Development Reduce Traffic Engineering Engineering Assistant $ 69,420 Services section staffinn II Development Reduce Field Engineering per 3/16109 M&CC $ 35,972 Services section staffing poeitionS'not lo,be c1eIel8d, inllla8d "cha""'.loo% 10 CIP Development Reduce Engineering Design Senior Civil Engineer - $ 149,380 Services section staffing Land Development; Engineering Assistant I Land Develooment Development Reduce Administration section Customer Service $ 100,320 Services staffing Rep.; Administrative Assistant Facilities Eliminate Director of Facilities Director of Facilities $ 178.576 Manaoement Mananement Facilities Eliminate City funded cell nfa $ 57.300 phones except for direct connect use, and go to phone allowance Fire Civilian Personnel Administrative $ 57,996 Assistant Fire Sworn personnel- delete 12 RiiiJliced savings l1y $ 1.600.800 firefighter positions by attrition S250!OOO<for ' att1i\lonlp8youls IT Eliminate Director of IT Director of IT $ 171,600 IT IT services (3) IT Tech II $ 219.017 IT IT services IT Analyst I $ 71,465 xvii Library Reduce Feldheym to 4 Deputy Director, $ 742.400 day/week schedule; eliminate Library Assistant, staff. and operate branches Branch Manager II, 2 with volunteers Branch Manager I's, 3 LibraN Tech /I Mayor's Office Reduction in personnel and Assistant to the Mayor contractual services I $ 147,383 Police Transfer Route 66 police $ 51,347 overtime costs to the Cultural Develooment Fund Police Eliminate Corridor Patrol OT - $ 752,400 Measure Z Police Eliminate long rifle program - $ 50.000 Measure Z Police Eliminate Young Visionaries $ 35.000 nronram - Measure Z Police Eliminate contract backgrounds $ 25,000 - Measure Z Police Reducing hiring incentives - ., Hiring' in(:eintiveS'" $ 1 00,000 Measure Z reinslat8d-pa1t of MOU Police Eliminate PAL program funding $ 35.000 - Measure Z Police Eliminate helicopter contract Only $156,300 was $ 555.900 Includedjn AdpPled Budget"incre..... were made lo.this as b';~"amendments. Police Modify jail schedule and staffing $ 373.800 Police Reduction in purchase of $ 48,900 marked Police vehicles Police Reduction in budget line items $ 443.000 in FY 09/10 Police Salary savings by attrition - hold Reduced savings by $ 317,684 vacancies as they occur- 2 5250.000 for Seroeants atJ1ition/p8youts Police Salary savings by attrition - hold $ 429, 120 vacancies as they occur 3 Detectives ... "~.' Police Salary savings - vacant GF Police Officer $ 106.457 nnsitio~ (included in mid-vearl Police Salary savings - maintain Police Officer $ 638,743 current Measure Z vacancies - use savings to offset other PO eXnRnses Police ~a/ary savings ~ GF po~~~ions Police Officer $ 425.828 not included in mid-vear PRCS Keep all pools closed for the $ 47,000 2009 summer season, except Jerrv Lewis Swim Center PRCS Contract out most park On June 15" the $ 1.085.566 maintenance; Shift 12 Mayor and Council personnel to LMD maintenance, approved restoring and eliminate LMO contracts; funding for eliminate 14 positions (net reinstatement of 11 savings) positions and deletion of contract costs. This change is expected to generate an additional $25,100 in expenditure savinns. PRCS Close Nicholson Community 3/4 Rec Coordinator - $ 58,800 Center 4 nart-time staff xviii PRCS Discontinue contract w/New $ 100.800 Hope Church for operations at Wests ide Community Center PRCS Discontinue contract wfCasa $ 50.783 Ramona for operation of the Oroo-In Center PRCS Close Galaxy/Norton Rec COmmunity RoC' - $ 160.100 Center ' Program SupeJVisor; 3 part lime position. (original proeoaal also induded _n of 314 Rec.egoidinator pos~ion. but new 8gniement witt\ PSA will n",,: ~nd 314 time """ilion. " "" PRCS Convert Operation Phoenix 3/4 Rec Coordinator $ 82,261 Center East to un staffed site and 4 nart-time staff PRCS Eliminate a portion of $ 110.000 recreation/aquatics part time salaries PRCS Reduce Recreation Division Recreation/Communit $ 134.900 Staffing y Services Division Mar PRCS Reduce Administration Division Senior Office $ 94,032 staffinn Assistant Public Services Transfer various percentages of Administrative and Street $ 100,220 Lighting personnel to Sewer Fund Public Services Transfer of remaining Right of Way expenditures and various $ 257.339 percentages of Administrative Personnel to IWM Fund Public Services Contract out !t~~ffiC Signa~\ Traffic Signal maintenance net savinns Technician II $ 80,216 All depts Friday Closure: $ 533.040 ManagemenVconfidential/ unclassified 10% work week reduction (additional 5% savings over current salary reduction) All depts Friday Closure: General and $ 2.575.200 Mid-Management 10% work week reduction Fire 10% concession ActUal concession $ 1,246,000 equals 8.7% of salary Fire Management 10% salary reduction (net of $ 140.000 uniform allowance) Chief, Assistant Chief, Fire Marshal/, Training Officer & Battalion Chiefs Police Police Manaaement: 10% pay Tola' concessions $ 2.565,600 Management & reduction for Chief and total $1.973:/100. Police Officers Assistant Chief; $8861month Apptox. $592;800 less Association reduction in health for Captains; than originaHy $794/month reduction in health ' astimatad. for Lieutenants. POA $400/ month reduction in health contribution! no uniform allowance XIX Although large savings were achieved through implementation of the items listed above, there were some items that contributed to less than expected savings and are briefly discussed below: Charter 186 In FY 2008-2009 $2.4 million was included in the Adopted Budget for anticipated Police and Fire Ch. 186 raises. However, the actual amount of the increase (not including Measure Z positions) was $2,626,900, an additional $226,900 over the budgeted amount (factored into Police and Fire salary and benefits for FY 2009-2010). For FY 2009-2010, Human Resources estimates that Ch. 186 raises will be approximately $131,900 higher than the budgeted amount in FY 2008-09, but still less than FY 2008-09 actuals. PERS Trust In the FY 2008-09 budget, a credit of $1,200,000 was factored into the General Government Budget related to excess funds that accumulated in the City's PERS trust account. This balance represents funds that have accumulated over the years. A review of this trust is in process and it has been determined that only $700,000 is available for FY 2009-2010. If additional funding is available upon completion of the audit of this trust, the City Manager will be notified. 3% @ 50 PARS for Police The previously negotiated "3% @ 50" PARS benefit retirement plan that was negotiated for a set number of Police employees prior to of irnplementation of the equivalent PERS plan is expected to increase from approximately $400,000 per year to $600,000 based on the most current actuarial of this benefit. Election Costs Estimated costs for elections in FY 2009-2010 are estimated to be $500,000, which is $105,000 higher than the amount budgeted in FY 2009-20 I O. Fire Devartment Avvaratus Revair Facility In FY 2008-2009 the City reached agreement with Caltrans on the sale price of the City's Fire apparatus maintenance facility. The facility had to be relocated due to widening of the 215 freeway. Of the $1.4 million negotiated, approximately $800,000 was used in FY 2008-2009 to help offset the City's deficit. The remaining $630,000 was placed in the City's reserve for future relocation costs. Included in the FY 2009- 2010 budget is expected use of this reserve: $430,000 for landlbuilding purchase down payment and related costs; $60,000 for estimated debt service payment on loan, and $100,000 for renovations to the new facility. xx Some major ongoing costs include: 3% @ 50 PERS for Saktv (sworn) The "3% @ 50" PERS retirement plan was implemented in January of 2009. With implementation of the 3% @ 50 plan in January of 2009, the rate increased from 18.951% to 24.009%. For FY 2009-2010 the PERS rate slightly declined to 23.356%. This rate includes a 30-year "hardship" amortization rate from PERS. In lieu of paying the 9% employee contribution for Safety personnel, the City pays an additional 9% of salary to Safety employees (sometimes referred to as the "9% salary conversion"). Combined, the total retirement benefit rate for the Safety Group is approximately 32.36%. In addition, the City continues to also annually pay approximately $3 million on the Pension Obligation Bond (POB) for Safety retirements. 2.7% @ 55 PERS for Miscellaneous Emvlovees (non-sworn) The previously negotiated "2.7% @ 55" PERS retirement plan was implemented in January of 2008. At that time the PERS rate for the Miscellaneous Group increased from 9.094% to 15.266%. After receiving approval for a 30-year "hardship" amortization rate from PERS in July of 2008, the rate was reduced to 13.427%. For FY 2009-2010, the PERS rate for the Miscellaneous Group is 12.544%. Additionally, the City fully pays the "member contribution" rate of 8%, bringing the combined retirement benefit rate for the Miscellaneous Group to 20.544%. Measure Z (Police Department) In April of 2007 the .25% Measure Z district tax becarne effective. New divisions to track expenditures related to Measure Z were set up in the Police Department and Parks & Recreation budgets. Each year since the inception of the Measure Z tax, police positions were added incrementally to the Police Department's budget. FY 2009-2010 is the first year that a Measure Z will fully fund 55 positions. Unfortunately because of declining Measure Z revenues, a number of other items were shifted from the Measure Z budget to other divisions in the Police Department, most notably overtime. In FY 2008-09, $2,064,600 was budgeted in Measure Z overtime. As part of the City Manager's Budget Reduction Strategy, $752,400 in overtime for "corridor patrols" was eliminated. The remaining $1,321,200 was moved to patrol. $84,300 was also budgeted for MOU commitments for hiring incentives for existing officers and anticipated new hires should the City receive additional grant funding. $149,000 out of $6.1 million of Measure Z funds were again allocated to Parks and Recreation for various programs designed to reach out to "at risk" youth. OTHER FUNDS OVERVIEW Other funds include special revenue funds such as Refuse, Library, Animal Control, Stadium, Asset Forfeiture and Transportation. It also includes Internal Service Funds such as Fleet, xxi Information Technology (IT) and Worker's Compensation. Overall, departments were held to the same expenditure levels as FY 2008-2009. Internal Seryice Funds The Fleet Fund's operating costs are estimated to decrease by approximately $508,000. Approximately $200,000 of this is for decreased fuel costs. Additionally, personnel costs have decreased by 10% with employees agreeing to furloughs. Of the $508,000 savings, approximately $300,000 is passed on to the General Fund as savings in chargebacks. The Information Technolof!V - Overall, IT costs have gone down by approximately $700,000. Approximately $400,000 of this is due to the elimination of 5 positions (including the Director), 10% pay reductions (furloughs) and removal of one-time costs and reimbursement revenue of $393,600 for the "911 - Public Safety Answering Point" (PSAP) upgrades. Utilitv Fund & Televhone Fund costs to the General Fund are expected to be approximately the same as FY 2008-09. If the City goes to a phone stipend program and no longer provides cell phones to ernployees, it is anticipated that costs could decrease from the proposed budget by approximately $57,000. The first year of payments on the recently completed HV AC upgrades at the Police Department will occur in FY 2009-2010. Annual payment of$88,500 will be offset by equivalent energy savings. Workers Comvensation and Liabilitv Fund Costs - In FY 2008-2009 a one-time additional transfer of $400,000 was made from the General Fund to the Liability Fund to offset the deficit in that fund. The estimated amount of clairns was also increased in a corresponding amount. For FY 2009-2010, based on a review of claims activity, the claims budget has been reduced by $400,000 and the $400,000 transfer has been eliminated. Inteerated Waste Manaeement Fund (lWM) IWM is finally beginning to see the results of their recently approved rate increase. Increased revenues combined with approximately 10% savings in personnel costs due to employee concessions has brought the estimated beginning balance for FY 2009-2010 to $940,200. Overall, IWM costs are being held to the same levels as FY 2008-2009. The only major difference is that, as part of the City Manager's Budget Strategy, the Right-of-Way Division expenditures will now be budgeted in IWM rather than the General Fund. This is an additional cost of $682,900. Debt service costs have also increased for the recent purchase of replacement Refuse trucks. (Please see "debt service" section of this document for a detailed list of vehicles financed.) The expected IWM fund balance at 6/30/2010 is estimated to be $776,300. Library Fund The Library, by reducing hours of operation at libraries and using volunteers when possible, deleted 8 positions for savings of approximately $742,400. xxii Animal Control Fund As part of the reductions approved by the Mayor and Council on 2117/09, Animal Control eliminated contracts providing other cities with San Bernardino Animal Control services. The elimination of 8 positions combined with reduced contract revenue is estimated to result in net savings of approximately $125,000. CAPITAL PROJECTS The Mayor and Common Council approved the FY 2009-2010 to 2013-2014 five-year CIP at the June 29th, 2009 Council Meeting (Resolution No. 2009-178). Detailed information regarding projects planned over this five-year period can be found in that document. Projects approved for FY 2009-2010 have been incorporated into this final budget document under the "Capital Improvements Projects" tab. GRANT FUNDING City departments continue to diligently pursue grant opportunities. The Mayor and Council should note that there is a competitive aspect to many of these grants and the City is often in competition with other agencies for the same grant dollars. Overall, the City expects to receive $7,384,800 (including $1.98 million for SBETA) in grant funding. Additionally, many departments are pursing other grant activities. For example, the Police Department recently was awarded approximately $3.8 million in COPS Hiring Recovery grant funding. CONCLUSION Although careful preparation has gone into this document, it must be considered a prelirninary, flexible document. The annual budget, while a financial plan for the City, must be dynamic enough to accommodate the unanticipated. The City's financial position will continued to be monitored by the Finance Department and the Mayor and Council will be updated on a quarterly basis. xxiii BUDGETING & ACCOUNTING POLICIES The City of San Bernardino, California was incorporated on April 13, 1854 as a Charter City and operates under a "Strong Mayor" form of government. The Mayor is elected at large by voters citywide while the seven (7) Councilmembers are elected by voters within their respective wards. The City Manager provides overall management and supervision of all City departments. The City provides the following services: public safety (police and fire), highways and streets, sanitation, health and social services, culture-recreation, public improvernents, community development (planning, building and zoning), public utilities (water and sewage), and general administrative services. Annual Budeet Process Mid-Year Budget Review The City's fiscal year begins July 151 and ends on June 30th. Preparation for the annual budget process actually begins with a rnid-year review of the current year's budget. In February, City departments are asked to estimate what their actual expenditures and revenues will be at June 30th based on actual expenditures and revenues received through December (the first half of the fiscal year). Finance Department staff analyzes the departmental estimates and makes adjustments to the estimates as needed. A report is then presented to the Mayor and Council which not only details what year-end expenditures and revenues are estimated to be, but also gives a preliminary first estimate of the City's budget needs for the upcoming year. PreliminarY Budget Preparation Departments are given their budget instructions in March. The budget instructions include: bottom-line departmental budget amounts, personnel costs for currently authorized budgeted positions, costs for internal service charges, instructions on how to use the automated budget system and current year revenue information. City departments are essentially held to the same bottom-line budget amounts as allocated in the current budget year with adjustrnents for changes in internal service charges, negotiated changes in personnel costs, increases/decreases in retirement and health benefit costs, and any other specific changes approved by the Director of Finance and City Administrator. Internal Service Departrnents (Information Services (IS), Fleet Services, Risk Management, Utilities and Telephone) prepare their expenditure and revenue budgets prior to other City departments so that internal service charges can be developed and included with the budget information and instructions given to other City departments. Preliminarv Budget Review Budget submittals are due back in Finance in early April for review and analysis before submittal to the City Administrator. Finance staff makes adjustments to departmental submittals as needed. XXIV Throughout the month of April, budget hearings are held with individual City departments, Finance staff, and the City Administrator. During the hearings, departments present their budget submittals and explain any requests for increased funding. Upon completion of hearings with each individual department, the City Administrator makes final adjustments to the departmental requests. A preliminary budget document is developed which presents the cost of providing service to the community at current levels (no service reductions are included in the Preliminary Budget Document). The Preliminary Budget Document also presents the estirnated funding resources available, given the current economic outlook, legal restrictions, and the availability of state and federal funding. The Preliminary Budget Document is presented to the Mayor and Council in early May. Final Budget Adoption A series of special Council rneetings are held in the month of June to review the Preliminary Budget Document and, if necessary, discuss options for balancing the City's budget. Departmental suggestions for revenue enhancements and expenditure reductions are presented to the Mayor and Council for their consideration. By June 30th, the Council adopts a balanced budget through passage of a resolution. Budl!:etarv Control and Accountinl!: The City utilizes the following general procedures in establishing its annual budgets: . The Annual Budget adopted by the Common Council provides for the City's general operations. Such annual budget includes proposed expenditures and estimated revenues for all Governmental Fund Types. . The City Administrator or designee is authorized to administratively transfer budgeted amounts (with the exception of personnel accounts) within departments up to $25,000. Any other transfers or amendments to the budget required the approval of the City Council. Actual expenditures may not exceed budgeted appropriations at the department level for the General Fund and at the fund level for all other budgeted funds. The budget figures used in the financial statements are final adjusted amounts. . The budget is formally integrated into the accounting system and employed as a managed control device during the year for all funds. . Budgets for the budgeted Governmental Fund Types are adopted on a basis consistent with generally accepted accounting principles. . At fiscal year-end, operating budget appropriations lapse; however, incomplete capital improvements, equipment and contractual appropriations and can be carried over to the following year upon approval by the Mayor and Common Council. xxv Sh!:nificant Accountin!!: Policies Reporting Entitv As required by generally accepted accounting principles, the City's financial statements present the activities of the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and so data from these units are combined with data of the primary government. Each discretely presented component unit, on the other hand, is reported in a separate column in the combined financial statements to emphasize it is legally separate from the government. Each blended and discretely presented component unit has a June 30 year-end. Because these blended units are leeallv separate entities. budeets for these entities are adopted separatelv bv their respective boards and not included in this document. Blended Components Units: The Economic Development Agency (Agency) of the City serves all the citizens of the City and is governed by a board comprised of the City's elected council. The activity of the Agency is reported as a separate fund in the special revenue, debt service, capital projects and enterprise fund types. Included with the Agency's activities is the San Bernardino Joint Powers Financing Authority which is a blended component unit of the Agency. Discretely presented Component Units: The Municipal Water Department (Department) of the City serves all the citizens of the City and is governed by a board whose members are appointed by the mayor of the City. The Department operates three enterprise funds: the Water utility, Sewer Utility and Geothermal utility Enterprise Funds. Each of the Department's utilities are reported as separate enterprise funds. Included with the Department's activities is the West End Water Development, Treatment and Conservation Joint Powers Authority, the San Bernardino Public Safety Authority and the Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority, all of which are reported as blended component units ofthe Department. Complete financial statements and budgets of the individual component units can be obtained directly from their administrative offices. Economic Development Agency 201 North "E" Street, Third Floor San Bernardino, CA 92401 Municipal Water Department of the City of San Bernardino 300 North "D" Street, Fifth Floor San Bernardino, CA 92402 Measurement Focus, Basis of Accounting, and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management XXVI in demonstrating compliance with finance-related legal and contractual provISIons. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental funds are used to account for the City's general government achvlhes. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year- end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and judgments and claims which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Sales taxes collected and held by the state at year end on behalf of the City are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes (not including major capital projects). The debt seryice funds account for the servicing of general long-term debt not being financed by proprietary funds. The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. Proprietary funds are accounted for on the flow of economic resources measurernent focus and use the accrual basis of accounting. Under this rnethod, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable F ASB pronouncements in accounting and reporting for its proprietary operations. Proprietary funds include the following fund types: xxvii Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the council has decided that the determination of revenues earned costs incurred and/or net income is necessary for management accountability. Internal service funds account for operations that provide services to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. Fiduciarv funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the City under the terms of a formal trust agreement. The agency fund is custodial in nature and does not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account for assets that the City holds for others in an agency capacity. Fund EQuitv Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of retained earnings are limited to outside third- party restrictions. Designations of fund balance represent managernent plans that are subject to change. The proprietary funds' contributed capital represent equity through capital grants and capital contributions from developers, customers or other funds. XXVlll FY 2009-2010 BUDGET CALENDAR February 17, 2009 Present FY 2008-09 Mid-Year Report to Mayor & Council February 26, 2009 Finance distributes info re: updated goals, accomplishments, descriptive text, and organizational charts for FY 2009-2010 February 11, 2009 Finance distributes budgeted personnel costs and information for FY 2009-2010 to departments for review February 11, 2009 Internal Service Departments receive expenditure/revenue budget instructions for FY 2009-2010 from Finance February 25,2009 FY 2009-2010 Internal Service expenditure budgets due back to Finance February 25,2009 Changes to FY 2009-2010 budgeted personnel costs due back to Finance from departments February 25,2009 Finance distributes revenue instructions to departments (FY 2009-2010) February 26,2009 Finance distributes FY 2009-2010 expenditure budget instructions to departments March 4, 2009 FY 2009-2010 revenue budgets due back to Finance from departments March 9, 2009 FY 2009-2010 expenditure budget submittals due back to Finance from departments March 17, 2009 Updated goals, accomplishments, descriptive text, and organizational charts for FY 2009-2010 due back to Finance from departments March 10 - 25,2009 Review of department expenditure budget/revenue budget submittals by Finance April 2009 Budget meetings with Departments, City Manager and Finance May 4, 2009 Target date for distribution of Preliminary FY 2009-2010 Preliminary Budget April/May/June Budget Meetings with Mayor & Council as determined by City Manager June 30, 2009 Target Date for Adoption of FY 2009-2010 Budget by Mayor and Council August 17, 2009 Adoption of FY 2009-2010 Budget by Mayor and Council Resolution No. 2009-305 XXIX City of San Bernardino Department Summaries City Manager The City Manager is responsible for the day-to-day administration of City government. The City Manager provides overall management and supervision of all City departments. The City Manager's Office acts as the nexus for interaction, coordination, and comrnunication among all City departments. Providing a sound fiscal direction for the City is the main goal of this department. The City Manager's Office is responsible for managing budget resources, carrying out policy implementation, and providing analysis and recomrnendations to aid in policy development. The City Manager's Office, in addition to providing the lead role in policy formulation and budgetary management, focuses on special projects as directed by the Mayor and Common Council. This department performs the agenda development function for the Mayor and Common Council, administers the City's Employee' Rideshare Program and coordinates grant writing efforts. City Attorney. The City Attorney is an elected position established by the City Charter. The City Attorney is the chief legal advisor for the City, and for all Departments, Boards, and Comrnissions of the City. The City Attorney's Office provides legal counsel and representation for the City, prosecutes and defends legal actions, and protects the interests of the public. The City Attorney, with a staff of 24, including 9 attorneys, secretaries and investigators, provides the following important and valuable legal services: . Defends the City in civil actions brought against the City, its officials, employees, and its departments; prosecutes violations of the City's Municipal Code and certain state laws; and, pursues actions to recover costs from third parties for damages and liability to the City. . Negotiates, reviews, edits, and drafts contracts and other transactional documents and agreements for the City. . Serves as general legal counsel and representative, researches, prepares ordinances, resolutions, and legal opinions on a wide variety of issues, and advises City employees regarding liability issues. xxx City Clerk The City Clerk is elected at large to a four-year term. The City Clerk is custodian of all public documents for the City of San Bernardino. In addition to this, the City Clerk's Office is responsible for the City's Business Registration Division, the Record and Information Management Program (RIM), all City elections, and the City's Passport Acceptance Facility. The City Clerk serves as the filing officer for all Campaign Statements and Staternents of Economic Interest and is responsible for the preparation and distribution of City Council agendas and minutes. Division: 031 Administration The City Charter mandates that the City Clerk maintain all official City records, including minutes, agendas, resolutions, ordinances, agreement, contracts, etc., and attend all City Council meetings. Also State mandates designate the City Clerk as the filing officer for all Campaign Statements and Statement of Economic Interest forms. In addition, the City Clerk's office is responsible for conducting any general or special elections required as a result of a recall, referendum, initiative or charter petition filed and determined qualified. The Administrative Division is in charge of the SB90 Claim open rneeting act process. Division: 032 Elections The City's next regular election is scheduled to take place during the 2009-2010 fiscal year; the City Clerk will issue nomination papers and serves as the Filing Officer for candidates campaign statements and Statement of Economic Interests. Division: 033 Business Registration The objective of the Business Registration Division is the efficient collection of business registration fees. This division is also responsible for tracking and collecting Uniform Transient Lodging Tax (TLT). The Business Registration Division registers over 17,000 businesses and collects over $8,000,000 in Business Registration and TL T revenue. Division: 035 Rim Program The objective of the RIM Program (Records & Information Management Program) is to control costs, increase space availability, streamline delivery of information and record-keeping systems and preserve the City's historical documents. The goal of the RIM Program is to strive to provide information in the most effective rnanner. xxxi City Treasurer The City Treasurer is a part-time position elected at large to a four-year term. The City Treasurer is responsible for overseeing City investments and related policies as established by the Common Council. The City Treasurer gives direction to the Treasurer's Office staff on when and what types of investments to make on behalf of the City and Water Departments. Prior to any investment being made, the City Treasurer reviews each investment for safety, liquidity, and yield. Civil Service Civil Service provides employment services for all classified positions in the City and the Water Department. This includes development of testing standards and content, and administration of all pre-employment written, oral and performance testing resulting in certification of candidates for over 300 job classifications. Civil Services ensures compliance with the Civil Service Rules, and review appeals to the Civil Service Board. Code Enforcement Under the direction of the City Manager, Code Enforcement is responsible for the implementation of the Mayor and Council's Cornprehensive Blight Reduction Strategy. Included in Code Enforcement are General Code Enforcement, Weed Abatement, Neighborhood Revitalization, and the Single Family Rental Inspection Program. Division: 071 Code Enforcement The Code Enforcement Division is responsible for enforcement of the city's property maintenance standards as well as other municipal code requirements pertaining to land use, and substandard housing, health and sanitation. The Division receives and investigates complaints, does active enforcement and follows up to assure compliance and correction of violations. The Division also provides staff support to the Board of Building Commissioners. Division: 073 Neighborhood Revitalization The Neighborhood Revitalization program handles general Code Enforcement in the Cities low and rnoderate income areas. The Program is funded with CDBG grant funds that rnust be applied for on an annual basis. Division: 074 Weed Abatement The Weed Abatement Division rnonitors all parcels for excess weeds and solid waste hazards. Abatement notices are mailed to owners of property requiring clean up. After a designated period of time, if the property owner has not corrected the problem, the city corrects the violation and bills the property owner for clean-up related costs. xxxii Division: 079 Single Fam. Rental Prop. Inspection Prog. The Single-Family Rental Inspection Program requires that Code Enforcement Officers conduct an annual inspection of every Single-Family Rental in the City. The owner of the property being inspected is required to pay an annual inspection fee to the City sufficient to recover the cost of the inspection. Thus this program is fee supported. This program is authorized by City Ordinance and began in November of2008. Common Council The Common Council is an elected body with legislative powers to enact ordinances, resolutions, policies, and enforcement, and funding actions to enhance the social and economic well being of the City and its citizens. Residents within their respective wards elect the seven rnembers of Council to four-year terms. The seven Council members serve at various times on a number of sub-committees including Personnel Committee, Ways & Means, and Legislative Review. Support personnel, funding and equipment is necessary to accomplish the goals, strategies, and objectives of this body. Development Services Development Services is responsible for planning and administration of the City's regulatory functions relating to proposed and existing development, permitting and inspecting buildings and related site irnprovements, managing the design and construction of public improvement projects, issuance of permits, real property management, assessment district services, acquisition and vacation of easements and right of way, and compliance with the City's National Pollution Discharge Elimination System (NPDES) permit requirements. Division: 181 Administration The Administrative Division of the department is responsible for the overall policy direction and management of the department. The division provides administrative support to management staff and department divisions as well as telephone/reception support to the staff and the public at the front counter. The division is also responsible for budget preparation and maintenance, billing for departmental services, processing all invoices and purchase orders, and personnel processing and policy. The department's managers provide the connecting link between what should be done (strategic planning) and what is done (operational control). Division: 182 Real Property The Real Property Division maintains records on annexations, dedications, vacations, easements, rights of way, and prepares all legal descriptions. The division also handles all aspects of sale and purchase of city property, including right of way and easement acquisitions. The division maintains records on all city property and leases, and is responsible for the formation and administration of assessment districts, prepares assessment rolls and responds to public inquiries xxxiii and various City Departments regarding City Property, right of way and easements. The division is also responsible for processing all street name changes. The division provides staff support to the Underground Utility District Committee. Division: 183 CIP/Design The CIP Design Division designs all public improvement projects and prepares the plans, specifications and estimates. The division administers the design and construction of Capital Improvement Projects, special City facilities, recreation park projects, and administers Federal/State funded projects as adopted by the Mayor and Common Council. Division: 184 Field Engineering/Inspection The Field Engineering/Inspection Division is responsible for contract administration, change orders and progress payments on all public works projects. The division provides inspections on all public improvements, onsite inspections for all site improvements, landscape maintenance districts, utility street cuts, temporary traffic control, and lane and street closures, material testing for both CIP and land development projects. The inspector's role is to ensure cornpliance with project plans, specifications, and City codes, standards, and policies. This division also includes the City survey crew whose duties include design survey for all CIP projects, verification of new and replaced monumentation, and maintenance of City survey control points, benchmarks, centerline ties, and bench marks. Division: 185 Traffic Engineering The Traffic Engineering Division responds to traffic related complaints from various sources, including the public, Council Office and City Manager's Office. The division is responsible for the issuance of work orders for installation of traffic control devices, signs and markings. The division reviews all development plans for traffic related issues, traffic impacts, calculates traffic fees, determines needs for traffic studies, operates traffic models, prepares signal timing plans, maintains the city-wide central control system for traffic signals, implements signal coordination plans, studies accidents, monitors accident rates and recommends traffic related solutions. The division also prepares Federal/State aid transportation-related funding applications. The division additionally provides technical support to Risk Management and the City Attorney's office on traffic related issues. Division: 188 NPDES The National Pollution Discharge Elimination System (NPDES) division inspects construction sites for compliance with Storm Water Pollution Program (SWPP), as well as commercial and industrial businesses and municipal sites for compliance with Water Quality Management Plans (WQMP). Staff also provides input in the design of development projects, tests water quality for reporting purposes, participates in multi-agency committees, ensures contract compliance with the City's Municipal Separate Storm Drain System (MS4) permit, and participates in public education programs. xxxiv Division: 190 Planning The Planning Division's responsibilities include periodic update of the City's General Plan (including the State mandated land use, circulation, housing, open space, conservation, noise and safety elernents, as well as several optional elements) and processing of applications for conditional use permits, subdivisions, variances, and development permits consistent with the City's General Plan and Development Code, and other planning-related laws as outlined in the California Government Code. Staff also provides support to the Planning Commission and Development/Environmental Review Committee, and provision of land use and development processing information to the general public. The division oversees environmental analysis for public and private projects, prepares and administers specific plans and area plans, conducts special studies related to land use and development and works with other agencies and the public on special projects related to land uses such as recreation trails, transit-oriented development, redevelopment and neighborhood revitalization. Division: 191 Building and Safety Inspection The Building Inspection Section seeks to establish the nexus between the Mayor and Common Council's enactment ofregulations and the desired result. Responsibilities include inspection of new and rehabilitative construction in commercial, industrial and residential building, the enforcement of various municipal and state regulations that pertain to construction and use of structures, enforcement of building codes, development code, state laws and regulations pertaining to energy and disabled access requirements, implementation of the City's unreinforced masonry building mitigation program, providing staff support to the Disabled Access Appeals Board. Division: 192 Building and Safety Plan Check The Building Plan Check Division is responsible for providing plan check services for review of all building plans and calculations to assure compliance with building codes, state laws and regulations, state energy and disable access requirements and City ordinances. The division is also responsible for providing front counter assistance to the public for issuance of building permits, permit processing information, status and requirements. The division provides staff support to the Disabled Access Appeals Board and the Development/Environmental Review Committee. Division: 193 Land Development Engineering The Land Development Engineering Division is responsible for plan checks related to on-site and off-site infrastructure construction and improvements, review of parcel and tract maps, administration of engineering permits and maintenance of all record maps and drawings. xxxv Facilities Manaf!ement Facilities Management provides building maintenance and custodial services for 142 City owned or leased buildings including: City Hall, Carousel Mall and the City Yards. The Department also enforces parking regulations, issuing over 30,000 citations annually. Division: 321 Administration Facilities Management Administration provides the overall supervISIon for the department including personnel, policy and budget administration. Facilities Management Administration also oversees the Utilities and Telephone Support Divisions. Division: 324 Custodial Maintenance The Custodial Maintenance section provides custodial services to a majority of City-owned facilities. Custodial Maintenance also does set-ups for special events. Division: 325 Building Maintenance The Building Maintenance section provides skilled craftsmen to perform facility maintenance in City-owned buildings. Services include electrical maintenance; HV AC maintenance, plumbing, and carpentry. Division: 326 Parking Control The Parking Control section provides enforcement of municipal codes relating to parking in downtown parking lots and handicapped parking throughout the City. The section also administers the collection of fines and the ticket review process. Finance The Finance Department is responsible for the City's financial planning (budgeting); accounting of the City's resources; fair and accurate reporting of the City's financial position; and management and control of all of the City's financial activities. Additionally, the Finance Department provides data and analysis to assist the City Administrator, Mayor, and Common Council in formulating policies. The Finance Department provides the following support services to City Departments: accounting, accounts payable, payroll, purchasing, budgeting, and cash management. The Finance Department also administers the Printshop. XXXVI Division: 121 Administration The Administration Division of the Finance Department is responsible for managing and maintaining the City's financial records and for providing meaningful reports to elected officials, City departments, the general public, and other entities. Finance Administration is also responsible for other various financial functions including payroll processing, accounts payable, general ledger, budgeting, billing and collections. Division: 122 Purchasing The Purchasing Division of the Finance Department is responsible for the procurement of goods and services for City Departments at the best terms and price possible. Purchasing maintains a bidder's list which provides for fair access to public funds. Public bid openings are conducted as required and departments are assisted with contract compliance and administration. Fire Department The Fire Department provides protection of life & property from fire and other disasters; provides emergency medical services; conducts safety inspections of businesses; educates the public through school and disaster preparedness programs; responds to hazardous materials incident scenes; provides aircraft rescue and fire fighting; and is responsible for city-wide disaster preparedness. Division: 201 Administration The Adrninistrative Division is responsible for the administration and coordination of the total department, to include: budget preparation and management, payroll, personnel matters and planning. The physical plant consists of 12 fire stations and one vehicle maintenance shop. The Central station houses the Administrative Office, the Fire Prevention Bureau, the Disaster Preparedness Division, and the Rental Housing Division. One fire station at the San Bernardino International Airport Authority is staffed on an "as needed basis". Division: 202 Emergency Operations The Emergency Operations Division protects life and property from fire and other disasters and provides medical care. The division is responsible for all emergency operations necessary to protect life and property and the training necessary to mitigate the related events. All suppression companies also perform fire protection inspections, hazard reductions operations, public education programs, fire station and equipment maintenance. Division: 203 Fire Prevention The Prevention Division conducts inspections for the prevention of fire and enforces all fire codes and related laws and is responsible for arson investigations. In addition, the Division conducts fire and life safety plans review and coordinates with the Police Department and Code Enforcement with blight eradication efforts. XXXVll Division: 204 Vehicle Maintenance The Vehicle Maintenance Division performs preventative maintenance and repair of all fire vehicles and apparatus. The activities are anticipated to provide an adequate level of preventative maintenance and unit repairs. Division: 205 Fire Dispatch Fire Dispatch provides dispatching and radio communications for the department on a 24-hour basis, as well as after hours dispatching for other City departments. Division: 206 Disaster Preparedness The Disaster Preparedness Division coordinates the City's Disaster Response and mitigation programs. The activities provide and enhance the efficiency of all city emergency management operations. Division: 207 Fire Rental Housing Inspection Division The Fire Rental Housing Inspection Division is part of the City of San Bernardino's overall effort to encourage upkeep of multi-family rental housing units. As required by the California Health and Safety Code multi-family rental housing properties are inspected annually by the Fire Department. Owners of these types of structures will be required to maintain these units in accordance with applicable housing, fire, building, and property maintenance codes and standards as adopted by the City. General Government General Government consists of two sections: 1.) Fine Arts & Cultural Affairs; and 2.) Non- Departmental. Funds budgeted for Fine Arts support various programs that aid the City in improving its community, developing and enhancing the cultural and aesthetic values of the City, and developing the civic affairs of the City. The Non-Departmental budget identifies and accounts for citywide program costs which are not directly applicable to anyone department. Division: 091 Fine Arts & Cultural Affairs Funds budgeted for Fine Arts support various programs that aid the City in improving its community, developing and enhancing the cultural and aesthetic values of the City, and developing the civic affairs of the City. Request for funding are presented to the Way & Means committee which then presents its recommendations to the Mayor and Common Council. xxxviii Division: 092 Non-Departmental The Non-Departmental budget identifies and accounts for citywide program costs which are not directly applicable to anyone department. Examples of items budgeted here include contingencies for anticipated MOU and Charter 186 salary and benefit increases, debt service on the City Hall building and miscellaneous audit and consulting fees. Human Resources The Human Resources Department is comprised of three divisions; Administration/Personnel Services and Risk Management. and Workers' Compensation. The Administration/Personnel Services Division is responsible for recruitments; administration of employee benefits; classification and compensation; tuition reimbursement program; employee training; employee relations and negotiations; grievance hearings; EEO investigations; new employee processing and employee separations. Additionally the Human Resources Director is responsible for all Risk Management functions (Workers' Compensation and Liability). Mavor The City of San Bernardino operates under a "Strong Mayor" form of municipal government. Elected citywide by the residents of the City to a four-year term, the Mayor is the executive leader of the City of San Bernardino. The Mayor is responsible for general supervision of the city's management and operation, and for goal setting and policymaking. The Mayor also serves as the executive leader of the Economic Development Agency. Members of the Mayor's staff are responsible for supporting the Mayor's executive functions in the City and for acting as intergovernmental and community liaisons on behalf of the Mayor and City. Members of the Mayor's staff are responsible for shepherding implementation of various initiatives, projects and priorities of the Mayor, In collaboration with the City Council, City Manager, city departments, and community. The Mayor's Office is responsible for public information regarding the City, for stewarding arts and cultural affairs in the City, and for hosting visiting dignitaries. Parks, Recreation & Communitv Services The Parks, Recreation and Community Services Department provides a diversified system of parks and open spaces, recreation centers, programs and community services to meet social and leisure needs and enhance the quality of life for all City residents. The Administration Division manages personnel, finance and community services. The Parks Division maintains parks facilities and conducts landscape plan checks and inspections services. The Recreation Division provides comrnunity and social services as well as recreation programs for all ages. XXXIX Division: 381 Administration The Administration Division is responsible for the total administrative rnanagement of the Parks, Recreation and Community Services Department. This includes all matters of finance, accounting, personnel, risk management, facility reservations, projects and programs management and other related department functions. The clerical staff processes more than 30,000 various letters, memos, forms, applications and other documents as well as filing and other administrative functions for the department. Division: 382 Park Maintenance The Park division provides diversified maintenance and construction activities at over forty (40) park facilities totaling 550 acres. These activities include yearly ball field maintenance, fencing, bleacher and plumbing repairs for twenty-five (25) little league fields and one (1) baseball field. Repairs to play structure at twenty-nine (29) play grounds and plumbing repairs at twenty-five (25) park restroom facilities. Additionally, the division is responsible for administration of seven (7) landscape and mowing contracts totaling over 306 acres. These sites include the landscape maintenance of the Carousel Mall, Public libraries, City Hall, Animal Shelter and various landscape areas such as Mt. View Avenue, Waterman Avenue and Muscupiabe Avenue. The park division also maintains the fountains at City Hall and the Carousel Mall. In addition, the division maintains fifty-one (51) Landscape Maintenance Districts (LMD) totaling over 6,602 assessed parcels. Division: 383 Recreation The Recreation Division is responsible for developing and implementing quality, value-based programs that encourage healthy lifestyles and celebrate the community's diversity. We provide quality recreation, social, and cultural activities for your, adults, and families. We accomplish our vision "Creating community through people, parks, and programs" by offering programs and services at our community centers, swimming and wading pools. Other programs include adult and youth sports, summer, after-school and off-track school sites programs. We administer various grants such as senior nutrition, summer lunches, and a head start program. In addition, the division gives oversight and supervision to the Senior Companion Program (SCP) and Retired and Senior Volunteer Program (RSVP). Division: 384 Center For Individual Development (C.I.D.) The Center for Individual Development (C.LD.) provides a wide range of therapeutic and inclusion recreation services for people with disabilities. Programs include aquatics, after school recreation, leisure education and special events. The customers served include those with physical disabilities, rnental illness, seniors, and those without disabilities. The C.LD. is operated through a joint powers authority consisting ofthe City, County and School District. xl Division: 386 Senior Citizens Center The Downtown Senior Center and the Perris Hill Senior Center facilities offer a wide range of services to seniors including senior nutrition, health services and screening, and educational and recreational programs. Division: 387 Norton Gym/Galaxy Ballroom The Norton Recreation Center and Galaxy Ballroom provide a variety of recreation programs for all ages. The Norton Gymnasium tennis courts, racquetball courts, fitness and weight room offer health and wellness program for both youth and adults. The Galaxy ballroom. Provides rental opportunities for family gatherings, business seminars and various special events. Division: 388 Community Centers The Community Centers provide a wide range of recreational, cultural, youth and adult services, and rentals. This cost center's programs include after-school, drop-in, leisure education, computers, special events, teen programming, drug prevention, aquatics, summer lunch/nutritional programs, and special interest/contract classes. Grants are also administered within this division. Division: 389 Aquatics/Sports The Aquatics/Sports division provides citywide aquatic programs and maintenance at six locations throughout the city. Adult sports programs, fitness classes, ball field and tournament reservation, and liaison to "Run the Route" and supervision of the cooperative use of Mills Community Center. Contracts with sports management groups, and liaison with various sports associations. Police Department The Police Department provides general police services to the City. It is the Police Department's responsibility to protect life, property and human rights, reduce fear of crime, and increase neighborhood vitality in partnership with the community. Division: 211 Administration Under Police Chief Michael A. Bildt, department personnel are focused on identifying at risk corridors and high-density crime areas throughout the city and delivering innovative, proactive police services to these target areas with a goal of mitigating violent crime. These programs will involve working synergistically with neighboring police agencies, federal and state agencies, and community and city leaders to provide cost effective solutions to identified community problems. xli Division: 212 Station Command Station Command provides 24-hour functional control of all police services and operations. The Watch Commander serves as the operational head of the department in the absence of the Chief of Police. He/she directly supervises personnel assigned to the Front Desk, and receives, evaluates and responds to citizen complaints. Station Comrnand is managed by three Lieutenants assigned with responsibility for the various Patrol shifts. Three Assistant Watch Commanders (Lead Sergeants) assist them in this function and also staff the Watch Commander's Office. Each Watch Commander is responsible for management and oversight of the deployed Patrol shifts, the station and all functions of the police departrnent. Division: 213 Patrol The Patrol Division is directly responsible for crime suppression and enforcement activities, cornmunity policing activities, first response to emergencies, enhancing community safety and providing a good level of police responsiveness. Police officers are distributed city-wide within a structured Patrol Beat Plan designed to provide beat stability, build ownership of the beat by officers (called territorial imperative) and enhance police-community partnerships to work on community identified problems. In addition to policing activities arising from calls for service, Patrol Division personnel pro actively address identified problems enlisting assistance frorn specialized details, including detectives, traffic, vice/narcotics, gang unit (MET), and graffiti task force. Division: 214 Carousel Mall The Carousel Mall unit oversees the administration of the San Bernardino Municipal Enforcement (SBME) unit, providing the uniformed security presence in the public areas and parking lots encompassing the Carousel Mall and downtown parkinglbusiness district. Division: 215 Vice & Narcotics Vice & Narcotics is responsible for investigating vice and narcotics activities, overseeing and administering asset forfeiture cases, investigating applications of business operators permits and ABC licenses, and investigating criminal and administrative violations of business operators permits and ABC laws. Division: 216 MET The Multiple Enforcement Team (MET) provides gang identification, repression and investigation efforts; provides gang awareness training to the public; and responds to police emergency situations requiring Special Weapons and Tactics (SW AT), and hostage negotiations. Division: 217 Traffic The Traffic Bureau provides proactive enforcement of traffic laws focusing available resources on chronic traffic accident locations, conducts follow up traffic accident investigations, and oversees the prosecution of traffic related offenses including driving under the influence and hit- and-run cases. The unit in partnership with the San Bernardino City Unified School District, manages the school crossing guard program, providing supervised street crossing at selected locations for children attending schooL xlii Division: 218 Investigations The Detective Bureau provides follow-up investigations on all crimes reported to various divisions of the police department with the exception of vice and narcotic violations and traffic violations. Investigators focus their activities on increasing the department's clearance rate, especially in the area of violent crimes, through targeting known offenders, tracking and intervening in crime patterns, and interaction and sharing of information with patrol district Crime Analysis and allied police agencies. The unit's goals of reducing crime and fear of crime are achieved through these efforts and positive interaction with crime victims and public notification of crime patterns. Division: 219 Identification & Property The Identification Bureau collects, preserves and presents in court, crime scene physical evidence, evaluates/identifies suspects from evidence collected, and participates in the State automated fingerprint identification system (CAL ID) to routinely conduct searches of latent prints against those of known criminal offenders. Forensic Technicians evaluate and enter bullet casings recovered from crime scenes and test fire recovered firearms for entry into the Rapid Brass Identification (RBI) system. RBI enables investigators to link various crimes by matching bullet casings fired from the same gun. Property stores and safeguards all evidence and property collected by department personnel and notifies victims when stolen property has been recovered. Division: 220 Financial Unit The Financial Unit oversees all budget, payroll, alarm compliance and grant program functions. The budget for this division includes department-wide internal service charges, lease payments, materials, supplies and contractual services. Personnel within this unit are responsible for payroll, purchasing, budget processes, billing, grant management, maintenance of financial records and the collection of revenue generated by the Police Department. Division: 221 Dispatch Police Communications provide emergency communication services for the community and Police Department personnel through telephone and radio contact. Dispatchers often serve as the first point of contact for the public via 911 calls and are responsible for entering and dispatching those calls for services to field personnel. It is our goal to deliver effective and efficient services through timely, courteous, and professional communications. Division: 222 Records The Records Bureau is the central collection point of all crime and traffic related reports and is responsible for processing and maintaining official documentation according to DOJ guidelines and regulations. This includes typing taped reports, entering report data into local, state and nationwide computer systems; generating monthly and annual crime statistics for DOJ and FBI; and duplicating crime and report arrests. xliii Division: 223 Measure Z The Measure Z budget is funded from the "quarter-cent" sales tax increase approved by voters in November 2006 for the purpose of crime suppression, prevention and intervention as well as earmarked to fund additional police officers and support personnel., and other urgent general fund programs. Expenditures are monitored by the Measure Z Steering Committee and are subject to an annual outside audit. Division: 224 Personnel and Training Personnel and Training Unit oversees all aspects of the Department's hiring process which includes all sworn, non-sworn, reserve officer, citizen patrol, department volunteer and explorer positions. Recruitment is also done through this unit. A recruitment officer visits academies and job fairs as well as coordinates and administers the OPAL (Outreach Police Advisory Liaison) program for future applicants. This unit also coordinates all training aspects of the department. The Personnel & Training Unit also maintains the Police Pistol Range where officers qualify on a quarterly basis. Members of the public also utilize the range on the weekends and on one night during the week. The Auxiliary Resources Coordinator is also a part of the Personnel & Training Division. This person serves as the liaison between volunteers and the rest of the Department. Division: 228 City Jail This budget reflects the expenditures associated with booking and housing prisoners in the city jail and includes jail operation costs, contractual services for jailers and projected booking fees for those prisoners ultimately lodged at the county jail facility. Public Services The Public Services Department maintains all streets, sidewalks, curbs, gutters, street trees, and streetlights, traffic signals, graffiti removal and sewer mains in the City. Public Services provides administrative support to other funds including the Integrated Waste Management, (IWM), Fleet, and Sewer Line Maintenance. Right-of-Way is now budgeted in the IWM budget. Division: 401 Street Administration Public Services Street Administration processes work orders and complaints from residents which may include potholes, street sweeping, tree maintenance, sidewalks, streetlights, traffic signals, graffiti removal and sewers. This division is also responsible for providing administrative and clerical support to all of the other divisions within the Public Services Department. Division: 402 Street Maintenance This section provides maintenance of 583 miles of roads, pothole filling, crack sealing, grading and clean up of unimproved roadway shoulders. This division also provides clean up after rainstorms and high winds. xliv Division: 403 Graffiti Removal This section administers the City's Graffiti Removal program. The program removes graffiti from public and private property utilizing environmentally safe methods such as power washing, gel removers, and painting. Division: 404 Street Tree Maintenance This section provides for the regular trirnrning and maintenance of street trees. The City has approximately 1,800 individual requests per year for emergencies that include hanging branches, removal of dead trees and clearance for traffic visibility. City crews also clean up after windstorms. Division: 406 Concrete This program will continue to concentrate on removal and replacement of 50,000 square feet of City sidewalks damaged by street trees, etc. This division also handles grinding of trip hazards and contracting of some sidewalk repair work. Division: 408 Traffic Signals The Traffic Signal section maintains and operates 250 traffic signalized intersections, 8 automatic gates, 18 flashing beacons, and the City's fuel system. The section provides for testing of all new signal equipment for the Development Services-Public Works projects and private sector installations. Staff members provide 24-hour emergency response on signal or access problems, emergency replacement of accident damaged poles, controllers, signals heads, and provide response to underground alerts to mark underground installations. Also, the section inspects new signal projects, makes sure preventative rnaintenance on signals is completed. Division: 409 Street Lighting The Street Lighting Section provides maintenance and service on approximately 11,000 city street lights. This section repairs and/or replaces damaged street lights from accidents, upgrades existing systems. This section also maintains scoreboards and lighting systems at 33 city owned ball fields, tennis courts, parks, library exterior lights, 3 and 5 level parking structures, and other city owned parking lots. Air Oualitv_(AB2766) The Air Quality Fund must be used for projects that help reduce pollution coming from mobile sources, such as cars and trucks. This goal is accomplished primarily through the employee ridesharing program, which offers a variety of incentives to encourage employees to carpool, take the bus, walk, and bicycle to work. xlv AB 2766, which established a fee for every vehicle registered in California, is the Air Quality Fund's revenue source. A portion of the money collected is allocated back to cities for use on emissions reduction projects. Animal Control Animal Control provides a wide range of services for people and animals in our community. Providing investigative services for citizen complaints, dangerous dog hearings, bites and cruelty cases are just part of the job. Maintaining a high level of rabies vaccination compliance and pet licensing addresses health and safety issues. Protecting people from the dangers and nuisances of uncontrolled animals and keeping animals safe from mistreatment and abuse is vital to our cornmunity. Promoting, motivating and enforcing responsible pet ownership is our number one goal. Contrary to the "limited admission" philosophies of some animal shelters we maintain an open door policy. We turn away no animal, regardless of health temperament, age or condition. Unfortunately, this does not enable us to place every animal in a new home. The sad fact remains however, that many otherwise healthy animals never get adopted because there aren't enough families who want them. Our philosophy is to keep working at the root causes of pet overpopulation and irresponsible pet ownership - to provide alternatives to indiscriminate breeding of pets, to encourage people to become better pet owners and to make our community a better place for both people and animals. Division: 230 Administration The division is responsible for the administrative operation of the animal shelter. The front office staff is usually the first point of contact for the public, either by phone or in person. The staff receives and processes over 60,000 telephone calls a year. Service request calls are entered into the department's animal management and complaint tracking system and dispatched to field officers for resolution. The staff processes cash transactions for animal adoptions, owner turn- ins, redemptions and other services including billing and maintaining department files. Division: 231 Field Services Animal Control Officers in the field services division are responsible for responding to request from citizens to investigate reports of dog bites, loose or aggressive animals, cruelty cases, dead animal removal and any violation of the City Municipal Code or state codes as they relate to animals. In addition, these officers provide humane education to pet owners, individuals, groups and schools. The Licensing staff is responsible for the annual canvassing of neighborhoods to maintain a high level of rabies compliance and to promote responsible pet ownership through city pet licensing. Division: 233 Shelter Services Anirnal Shelter Attendants, are responsible for the daily care of animals in the shelter which typically averages about 200 dogs and 60 cats. These attendants provide for the daily feeding xlvi and watering of the animals and the cleaning and sanitizing of kennels, cages and facilities. Staff members interact with the public when selecting animals for adoption or redemption and work closely with a variety of breeds and rescue groups that help place unwanted animals with new families. The division operates 7 days a week in providing care to the animals. Asset Forfeiture The Asset Forfeiture Unit is responsible for the examination and investigation of asset seized by various units of the police department to determine their potential for seizure. The unit generates revenue to supplement law enforcement through the legal process of rernoving seized assets from persons involved in various criminal enterprises. Division: 271 Asset Forfeiture Fund provides asset forfeiture proceeds to augment Police Department operations, above General Fund appropriations. Division: 272 Drug/Gang Education Fund provides money for drug/gang education disbursements approved by the County of San Bernardino Oversight Committee. Funds are distributed pursuant to Health and Safety Code Section 11489 and must be used solely for programs designed to combat drug abuse and divert gang activity. Cemetel1!.. The Department currently maintains the 26 acre Pioneer Memorial Cemetery. Comprehensive grounds maintenance consisting of mowing, trimming, setting of grave memorials, tree trimming, fertilization, irrigation and general beautification are included in the scope of services. Approxirnately 100 interments are performed annually, while a "pre-need" prograrn is also available for all city customers. InteJ!rated Waste ManaJ!ement Under the direction of the Public Services Director, the Public Services Integrated Waste Management Division is responsible for the following: Automated Residential Refuse Collection, Commercial Refuse Collection, Street Sweeping, Environmental Programs, and Right -of-Way operations. Division: 411 Administration Public Services Integrated Waste Management Administration provides customer service including temporary bin deliveries, commercial accounts, commercial and residential billing payment posting, collection activities, and inquiries. xlvii Division: 412 Automated Residential Collection The Automated Residential Collection section is responsible for the collection of trash, green waste, and recyclables from approximately 40,000 residences in the City. Division: 413 Subscription Refuse Services Subscription Collection Services provides service to local businesses and includes temporary bin deliveries to residents. Subscription Services removes and disposes of waste from comrnercial establishments, light industrial businesses and apartment cornplexes. Division: 414 Street Sweeping The Street Sweeping section is responsible for sweeping all of the City's streets and disposing of the debris and rnaterials generated by sweeping. All streets are swept twice (2) per month. Division: 415 Environmental Projects The Environmental Projects section of the Public Services Integrated Waste Managernent Division is responsible for developing and monitoring educational and incentive programs to reduce the tonnage of solid waste transported to local landfills. Division: 416 Right-Of-Way The Right-of-Way crew is responsible for the spraying and removal of weeds maintaining alleys, cleaning roadway shoulders, general clean up of right-of-ways and removal of illegally dumped materials from streets. This section also provides abatement services to the Code Compliance Department. Librarr The mission ofthe San Bernardino Public Library is to provide free access to the world of ideas, information and creative experience for all citizens of San Bernardino. The Library is a cultural center where the people of San Bernardino come together to learn and participate in public discourse. It aids the community in the creation of informed and educated citizenry and provides opportunities for free lifelong learning and economic improvement. The San Bernardino Public Library is governed by an autonomous administrative Library Board of Trustees as provided by Article XII of the Charter of the City of San Bernardino. Library services are provided at four sites: Norman F. Feldheym Central Library, Villasenor Library, Inghram Library, and Rowe Library. xlviii Sewer Line Maintenance Under the direction of the Public Services Director, this section is responsible for maintaining approximately 510 miles of sewer mains through the use of hydro-jetting equipment. Sewer lines are cleaned on varying schedules. This section uses video equipment to record the condition of sewer lines and handles emergency repairs. Sewer crews are available 24 hours per day to handle emergencies. Soccer Fields The San Bernardino Soccer Complex features 17 tournament quality fields and plays host to 48 weekend events per year in addition to league play. Currently the complex is managed by professional City Staff. As a major attraction to the community, the Complex generates direct and indirect revenue that covers the cost of maintenance and operations and contributes to the economic viability of the City. San Bernardino Stadium Under the direction of the Director of Parks, Recreation, and Community Services, the Stadium section is currently responsible for landscape maintenance, coordinating building and equipment maintenance and facilities-related functions such as bleacher repair, debris removal, general cleaning and stocking of restrooms for non-baseball related activities. The maintenance of the baseball field is the responsibility of the 66'ers Baseball Club. Funding related to marketing and promotion of the Stadium is also included in this cost center. Traffic Sa&Jy Fund Expenditures related to Red-Light Camera Enforcement Program are budgeted in the 128 Traffic Safety Fund. All moving violations revenues are deposited in this special fund by law. Fleet Services Under the direction of the Public Services Director, the Fleet Division is responsible for acquisition, service and maintenance for the City's vehicle and equipment fleet comprised of approxirnately 841 iterns. Fleet procures all City vehicles and equipment through the developrnent of technical specifications. Final selection is based on life cycle costing and user requirements. xlix !.!!formation TechnoloJ!V..1L T.) As a result of the budget reduction measures undertaken in February 2009, FY 2009/10 will represent the first year the LT. Department will report to the City Manager's Office. 1.1. is an internal service department providing technology creation and maintenance, and general automation support to the City Departments, including the Water Department. LT. is responsible for all hardware, software, and network infrastructure within the City. Additionally, LT. is responsible for maintaining and coordinating all radios, MDT's, MDC's, and miscellaneous public safety gear. Division: 215 IT LT. provides citywide technical support to the network infrastructure, computer systems, printers, desktop hardware, and the City's various software applications including the City Business Systems, CADIRMS systems, G.LS., Office Automation, Document Imaging and the City web site. The LT. Division also provides similar services to the Water Department. Division: 252 Communications Operations The Communication Operation division of IT coordinates and maintains financial accounting and maintenance support of citywide radios, radio infrastructure, MDC's, sirens, light bars and miscellaneous public safety gear. Liabilitv/Risk Management The Risk Management Liability program provides support for the City's operating departments by quickly resolving legitimate third party claims, managing the Hazardous Materials, Department of Transportation and Drug Testing Programs; conducting city-wide safety/incident committee and advising departments on a wide range of insurance related issues. The cost- effective placement of excess insurance and property coverage is a critical component of the program. Print Sho1l. Under the direction of the Administrative Services Manager, the Print Shop operates as an internal service fund; it provides printing services and covers its operational costs in charge- backs to City Departments. The Print Shop is responsible for providing support related to various printed products including business cards, letterhead, flyers and forms. In addition, the Print Shop is responsible for all sorting, distribution and stamping of all outgoing mail and sorting and distribution of inter-office mail. Telephone SU1]]Jort The Telephone Support section operates under the direction of the Director of Facilities Management. Telephone Support is responsible for the maintenance of the City-owned telephone system, and for providing recommendations for new technologies in the area of communications. Utilities Under the direction of the Director of Facilities Management, the Utilities Fund operates as an internal service fund. All City utility charges are paid through the Utility Fund for better control, management, and efficiency. Utilities paid through the fund include electricity, water, sewer, geothermal and natural gas. Workers Compensation The Workers' Compensation Division is responsible for the management of all ernployee injury claims in a fair and cost effective manner. The program involves the administration of the employees' health and prevention programs to include the pre-employment physicals and fitness- for-duty; as well as a Self Insured/Self-Administered Workers' Compensation program, which is a benefit and delivery program for City employees injured while in the course and scope of employment. Ii City of San Bernardino Patrick J. Morris, Mayor Our Vision: Our vision for the City of San Bernardino is for it to be strong and prosperous. The City of San Bernardino will be the hub of economic growth in the Inland Empire. San Bernardino will offer a wide range of housing, recreation, cultural, educational, and employment opportunities for all who come live and work here. A strong sense of community will continue to grow and thrive within our city limits. Our Mission: Our mission is to provide quality and cost effective services to the people of San Bernardino. We will provide excellence in leadership through the allocation of public resources to City programs that are responsive to community priorities and maximize opportunities for economic and cultural viability. Iii Adopted Goals: Overarching goal: Improve Governance by 1. Public Safety 2. City and EDA financial security 3. Image enhancement and quality of life 4. Adequate staffing level 5. Signature development projects 6. More effective community beautification 7. Streamlining City operations liii