FY 2020-2021CITY OF EL SEGUNDO, CALIFORNIA
ADOPTED OPERATING & CAPITAL IMPROVEMENT BUDGET
FISCAL YEAR 2020-2021
Drew Boyles
Mayor
Carol Pirsztuk
Councilmember
CITY COUNCIL
Chris Pimentel
Mayor Pro Tern
Scot Nicol
Councilmember
Tracy Weaver Matthew Robinson
City Clerk City Treasurer
Scott Mitnick
City Manager
Mark Hensley
City Attorney
Lance Giroux
Councilmember
(This page intentionally left blank.)
CITY OF EL SEGUNDO
TABLE OF CONTENTS
PAGE
City Manager's Budget Message
City Manager's Budget Message............................................................................................ i
Resolution No. 5103 - Operating & Capital Improvement Budget Adoption ......................... xxii
General Information
CityOrganizational Chart....................................................................................................... 1
List of Public Officials............................................................................................................. 2
List of Boards/Commissions/Committees.............................................................................. 3
Budget Calendar/Budget Process........................................................................................... 4
Description of Funds & Fund Types....................................................................................... 5
Description of Major Revenues Sources................................................................................ 9
Summaries of Financial Data
11
Estimated Fund Balances - All Funds......................................................................................
12
Estimated Revenues & Other Financing Sources - All Funds ..................................................
14
Schedule of Interfund Transfers.............................................................................................
22
Adopted Budget Summary By Fund/By Department - All Funds ...........................................
23
Adopted Budget Summary By Function - All Funds...............................................................
27
Adopted Revenues & Expenditures Summary - General Fund ...............................................
30
Adopted Budget Summary By Account - General Fund .........................................................
31
Four -Year Personnel Summary - By Department...................................................................
34
Reconciliation of Position Changes........................................................................................
41
Departmental Details
City Council
OrganizationalChart..............................................................................................................
43
Four -Year Personnel Summary..............................................................................................
44
CityCouncil Profile.................................................................................................................
45
AdoptedBudget Summary.....................................................................................................
46
AdoptedBudget Details.........................................................................................................
47
City Clerk
OrganizationalChart..............................................................................................................
49
Four -Year Personnel Summary..............................................................................................
50
City Clerk's Department Profile..............................................................................................
51
AdoptedBudget Summary.....................................................................................................
52
Adopted Budget Summary By Account..................................................................................
53
AdoptedBudget Details.........................................................................................................
54
City Manager
OrganizationalChart..............................................................................................................
57
Four -Year Personnel Summary..............................................................................................
58
City Manager's Department Profile........................................................................................
59
AdoptedBudget Summary.....................................................................................................
64
Adopted Budget Summary By Account - General Fund .........................................................
65
AdoptedBudget Details.........................................................................................................
66
City Attorney
OrganizationalChart..............................................................................................................
69
City Attorney's Department Profile........................................................................................
70
AdoptedBudget Summary.....................................................................................................
71
AdoptedBudget Details.........................................................................................................
72
CITY OF EL SEGUNDO
TABLE OF CONTENTS
PAGE
Information Technology Services Department
OrganizationalChart.............................................................................................................. 73
Four -Year Personnel Summary.............................................................................................. 74
Information Technology Services Profile............................................................................... 75
AdoptedBudget Summary..................................................................................................... 76
AdoptedBudget Details......................................................................................................... 77
Human Resources Department
OrganizationalChart..............................................................................................................
79
Four -Year Personnel Summary..............................................................................................
80
Human Resources Department Profile..................................................................................
81
AdoptedBudget Summary.....................................................................................................
83
AdoptedBudget Details.........................................................................................................
84
Finance Department
OrganizationalChart.............................................................................................................. 85
Four -Year Personnel Summary.............................................................................................. 86
Finance Department Profile................................................................................................... 87
AdoptedBudget Summary..................................................................................................... 89
Adopted Budget Summary By Account - General Fund ......................................................... 90
AdoptedBudget Details......................................................................................................... 91
Police Department
OrganizationalChart.............................................................................................................. 97
Four -Year Personnel Summary.............................................................................................. 98
Police Department Profile...................................................................................................... 99
AdoptedBudget Summary..................................................................................................... 100
Adopted Budget Summary By Account - General Fund ......................................................... 102
AdoptedBudget Details......................................................................................................... 104
Fire Department
OrganizationalChart..............................................................................................................
109
Four -Year Personnel Summary..............................................................................................
110
FireDepartment Profile.........................................................................................................
111
AdoptedBudget Summary.....................................................................................................
115
Adopted Budget Summary By Account - General Fund .........................................................
117
AdoptedBudget Details.........................................................................................................
119
Develepment Services Department
OrganizationalChart..............................................................................................................
125
Four -Year Personnel Summary..............................................................................................
126
Development Services Department Profile............................................................................
127
AdoptedBudget Summary.....................................................................................................
128
Adopted Budget Summary By Account - General Fund .........................................................
130
AdoptedBudget Details.........................................................................................................
131
Public Works Department
OrganizationalChart.............................................................................................................. 137
Four -Year Personnel Summary.............................................................................................. 138
Public Works Department Profile.......................................................................................... 139
AdoptedBudget Summary..................................................................................................... 142
Adopted Budget Summary By Account - General Fund ......................................................... 145
AdoptedBudget Details......................................................................................................... 147
CITY OF EL SEGUNDO
TABLE OF CONTENTS
Community Services Department
PAGE
Community Services Organizational Chart.............................................................................
157
Community Services Department Profile...............................................................................
159
Recreation Division
Recreation Division Four -Year Personnel Summary...............................................................
162
AdoptedBudget Summary.....................................................................................................
163
Adopted Budget Summary By Account - General Fund .........................................................
166
AdoptedBudget Details.........................................................................................................
167
Library Services Division
Library Services Four -Year Personnel Summary.....................................................................
174
AdoptedBudget Summary.....................................................................................................
175
Adopted Budget Summary By Account - General Fund .........................................................
177
AdoptedBudget Details.........................................................................................................
178
Non -Departmental
Non -Departmental Profile......................................................................................................
183
AdoptedBudget Summary.....................................................................................................
184
AdoptedBudget Details.........................................................................................................
185
Internal Service Funds
Equipment Replacement Fund
Equipment Replacement Fund Profile................................................................................... 187
Adopted Budget Summary by Account.................................................................................. 188
Schedule of Equipment Eligible for Replacement.................................................................. 189
General Liability Insurance Fund
General Liability Insurance Fund Profile............................................................................ 194
AdoptedBudget Summary................................................................................................ 195
AdoptedBudget Details..................................................................................................... 196
Workers' Compensation Insurance Fund
Workers' Compensation Insurance Fund Profile............................................................... 197
AdoptedBudget Summary................................................................................................ 198
AdoptedBudget Details..................................................................................................... 199
Capital Improvement Projects
Citywide Capital Improvement Program Budget................................................................... 201
Multi -Year Capital Improvement Program............................................................................. 202
CapitalImprovement Projects............................................................................................... 203
Appendix
Historyof El Segundo............................................................................................................. 217
Financial Policies & Procedures.............................................................................................. 224
Top 10 Property & Sales Taxpayers/Top 10 Employers......................................................... 225
Glossaryof Budget Terms...................................................................................................... 226
AccountCode Description...................................................................................................... 228
AcronymsUsed...................................................................................................................... 234
(This page intentionally left blank.)
City Manager's Office
MEMORANDUM
350 Main Street El Segundo, CA 90245
Phone 310-524-2300 1 ww.elsegundo.org
To: Honorable Mayor and Members of City Council
From: Scott Mitnick, City Manager
Date: October 1, 2020
Subject: Adopted FY 2020-2021 Operating & Capital Improvement Program Budget
On behalf of all City employees, it is my pleasure to submit a balanced Adopted Operating Budget for
Fiscal Year (FY) 2020-2021. With this budget, the City will begin the process to shift from using the
October 1 to September 30 fiscal year cycle to a more traditional July 1 to June 30 cycle. As a result, FY
2020-21 will operate within an abbreviated nine -month budget cycle from October 1, 2020 to June 30,
2021. This will allow the following year to run for a full 12 months from July 1, 2021 to June 30, 2022.
COVID-19 & Civil Unrest Impacts
Due to the unanticipated effects of two simultaneous national and local "State of Emergency" situations
(the global COVID-19 pandemic which started in February 2020 and the civil unrest in response to the
tragic death of George Floyd in Minneapolis on May 25, 2020), the local El Segundo economy has
experienced considerable impacts over the past seven months. This has translated into significant
reductions to local City revenues and funding for budget appropriations. Until the number of Coronavirus
cases drop significantly for a sustainable period, a viable vaccine is in place, and the civil unrest tensions
subside, the financial impacts are likely to continue to impact the local El Segundo City Budget.
Extensive Budget Preparation & Discussion Process
The FY 2020-2021 budget preparation process with City Council started in earnest with the April 21, 2020
Closed Session discussion of the early financial impacts of the evolving COVID-19 pandemic crisis. The
public discussion commenced with the May 5th FY 2019-2020 General Fund Mid -Year Budget Update
presentation to City Council. At that meeting, staff presented "Economic Recovery Scenarios" which
were based on the following three different "economic recovery" timeframes:
• Scenario One -- COVID-19 peaks in May 2020 & Economic Recovery starts in July 2020
With the General Fund projected to experience a $9.6 million (12%) revenue decline.
• Scenario Two -- COVID-19 peaks in August 2020 & Economic Recovery starts in Oct. 2020
With the General Fund projected to experience a $15.2 million (or 20%) revenue decline.
• Scenario Three -- COVID-19 peaks in Dec. 2020 & Economic Recovery starts in Jan. 2021
With the General Fund projected to experience a $16.1 million (21%) revenue decline.
Based on the best information available at the time, adjustments were made to accommodate Economic
Recovery Scenario One. Revenue estimates and budget appropriations were amended to ensure that
FY 2019-2020 ended the year with a balanced budget. This included not filling 35 vacant positions.
Over the course of the following two months, it became evident that Economic Recovery Scenario Two
was the more likely outcome. In response, staff made a series of additional internal adjustments to
ensure that the upcoming FY 2020-2021 Budget would be balanced. On July 22nd, City Council held a
study session to review the existing three-year 2020-2022 Citywide Strategic Plan. At that meeting, staff
provided a budget overview and City Council requested revisions to the Strategic Plan's Top Priorities,
Goals, and Activities. On August 5th, a Budget Study Session was held to incorporate these revisions
and review the initial Proposed FY 2020-2021 Operating Budget and Capital Improvement Program (CIP)
Budget. Economic Recovery Scenario Two was included in the proposed budget.
Adhering to Citywide Strategic Plan for 2020-2022
At the August 5th Study Session, City Council approved the revised 2020-2022 Strategic Plan which
included the following Top Ten Priorities and Five Broad Goals:
Top Ten Priorities
1. Obtain an "Age Friendly City" designation
2. Determine future of the Teen Center
3. Continue to advocate for El Segundo's interests regarding LAX expansion
4. Consider guidelines for use of potential revenue from golf course lease
5. Identify further infrastructure and downtown improvements for Main Street
6. Attract senior living facilities to El Segundo
7. Identify areas within the community that are appropriate for housing
8. Conduct a study of repurposing City Hall
9. Develop a unique value proposition for attracting new businesses
10. Ensure that the City is positioned for post COVID-19 recovery
Five Broad Goals
1. Enhance customer service, engagement, & communication; Embrace diversity, equity & inclusion
2. Support community safety and preparedness
3. Develop the City organization to become a choice employer and workforce
4. Develop and maintain quality infrastructure and technology
5. Champion economic development and fiscal sustainability
Reorganization of City Departments
The Proposed FY 2020-2021 Budget that staff presented to City Council as part of both the August 5th
Budget Study Session and September 15th Budget Public Hearing included the initial phase of a
reorganization of several operating departments which will achieve greater operational and financial
efficiencies. While City Council approved the budget to support this reorganization effort, City Council
will formally act on the implementation actions needed to effectuate this effort at its October 20, 2020
meeting. The details of this reorganization are described on pages x and A.
Overview of Adopted FY 2020-2021 Operating Citywide Budget
Total adopted appropriations (for all funds) for FY 2020-2021 is $119,598,827, as follows:
No.
Fund
FY 2019-2020
Adopted Budget
(12 months)
%
FY 2020-2021
Adopted Budget
(9 months)
1
General Fund
$80,782,540
58.6%
$59,051,732
49.4%
2
Water
29,622,670
21.5%
22,083,273
18.5%
3
Equipment Replacement
7,849,761
5.7%
7,871,674
6.6%
4
Transportation Funds
2,284,527
1.7%
7,532,791
6.3%
5
General Fund CIP
2,749,000
2.0%
5,597,057
4.7%
6
Wastewater
5,235,334
3.8%
4,660,165
3.9%
7
Worker's Compensation
2,934,272
2.1%
2,564,421
2.1%
8
Public Safety Special Rev.
1,661,565
1.2%
1,887,407
1.6%
9
Other Special Rev.
578,806
0.4%
1,792,850
1.5%
10
Dev. Services Trust
0
0.0%
1,700,000
1.4%
11
General Liability
1,783,333
1.3%
1,269,399
1.1%
12
Economic Uncertainty
0
0.0%
923,708
0.8%
13
Golf
1,417,800
1.0%
727,000
0.6%
14
Rec & Econ Dev Trusts
0
0.0%
600,850
0.5%
15
Debt Service
545,000
0.4%
545,000
0.4%
16
Cultural Dev. Trust
0
0.0%
486,000
0.4%
17
Solid Waste
230,000
0.2%
230,000
0.2%
18
Senior Housing
74,113
0.1%
75,500
0.1%
Total
$137,748,721
100.0%
$119,598,827
100.0%
FY 2020-2021 Citywide Appropriations by Fund
Special Revenue
Golf (0.6%) Solid Waste (0.2%) Other (1.3%)
(9 4/) Trust (2.3%)
CIP (4.7%)
Work Comp & G/L (3.2%)
Wastewater (3.9%) -
Equipment
Replacement (6.6%)
Water (18.5%)
The General Fund represents the largest portion of the total Adopted Citywide Budget at $59,051,732
(49.4%). Enterprise Funds represent the second largest group at 23.2%, as follows: Water Fund at
$22,083,273 (18.5%); Wastewater Fund at $4,660,165 (3.9%); Golf Fund at $727,000 (0.6%); and Solid
Waste Fund at $230,000 (0.2%). Internal Service Funds total 9.8% as follows: Equipment Replacement
Fund at $7,871,674 (6.6%); Workers' Compensation Fund at $2,564,421 (2.1 %); and, General Liability
Fund at $1,269,399 (1.1%).
The General Fund Capital Improvement Program (CIP) Fund totals $5,597,057 (or 4.7% of all funds).
This consists of $4,347,057 in carryover funding from prior fiscal years to support 22 ongoing projects
and $1,250,000 in "new" funding for two projects supported by City Council at the August 5, 2020 Budget
Study Session to be put back into the CIP (after being deferred earlier in the year due to COVID-19).
The remainder of the funds consist of smaller funds dedicated to specific purposes. These include the
Debt Service Fund, Development Services Trust Fund, Recreation and Parks Fund, Economic
Development Fund, Cultural Development Trust Fund, and Park Vista Senior Housing Project Fund.
L
Adopted FY 2020-2021 General Fund Budget
The Adopted FY 2020-2021 General Fund Budget is balanced with recurring operating revenues
sufficient to cover recurring operating expenditures. One-time use of reserves will take place for one-time
capital improvement projects to partially maintain deteriorating facilities and aging public infrastructure.
This approach fully complies with the City's Financial Policies. The General Fund pays for the majority of
the City's basic operations and services, including the following:
• Public Safety (Police & Fire)
• Public Works (Streets/Engineering/Facilities/Landscaping)
• Community Services (Library/Senior/Teen/Recreation/Cultural Arts)
• Development Services (Planning/Building/Housing)
• Internal Support (City Clerk/City Treasurer/Finance/Human Resources/Information Technology)
• General Governance (City Council/City Manager/City Attorney)
General Fund Revenues
Total General Fund revenues for the nine -month FY 2020-2021 are anticipated to be $59,051,732, as
illustrated in the following table and chart:
1
Business License Tax
$12,510,000
$10,489,360
$(2,020,640)
2
Property Tax
8,816,500
9,645,025
828,525
3
Sales Tax
11,500,000
8,373,683
(3,126,317)
4
Transient Occupancy Tax
15,200,000
7,524,570
(7,675,430)
5
Chevron Tax Agreement
5,600,000
6,000,000
400,000
6
Utility Users Tax
6,450,000
4,494,047
(1,955,953)
7
Charges for Service
5,298,845
3,415,836
(1,883,009)
8
Franchise Tax
3,200,000
2,250,000
(950,000)
9
Intergovernmental Revenues
1,851,490
1,942,770
91,280
10
Other Revenues
3,218,995
1,916,964
(1,302,031)
11
License & Permits
1,688,358
1,153,769
(534,589)
12
Transfers -In
140,000
948,708
808,708
13
Interest & Rentals
824,000
603,000
(221,000)
14
Fines & Forfeitures
412,020
294,000
(118,020)
In
FY 2020-2021 General Fund Revenues
Franchise Tax (4%)
Chargesfor 1
Services (6%),,0
Other Revenues Transient Occupancy
(12%) Tax (13%)
Sales Tax (14%)
Chevron TRA (10%)
Utility Users Taxe
(7%)
The Top Six General Fund revenue sources are as follows:
1. Business License Tax -- $10.489.360
This represents a decrease of just over $2 million (or -16%) from FY 2019-2020 which is based on the
current challenging economic conditions brought on as a result of COVID-19 and the mandated social
restrictions as determined by the State of California and Los Angeles County Health Department. This
has created a significant temporary impact on the local economy that has resulted in some employers
deciding to downsize in order to weather the COVID-19 virus. Also, decreased filming productions have
impacted Business Film License permits. It is anticipated that this revenue source will increase after a
Coronavirus vaccine is developed.
2. Property Tax -- $9,645,025
This represents an Increase of approximately $828,000 (or 9%) from FY 2019-2020 which is attributed
to rising property values and increased property sales transactions. The City experienced a net taxable
value increase of about 8% for the FY 2019-20 tax roll, which was more than the increase experienced
Countywide at 6.5%. The assessed value increase between FY 2018-19 and FY 2019-20 was $1.12
billion. The change attributed to the 2% Proposition 13 inflation adjustment was $244 million, which
accounted for 22% of all growth experienced in the City.
It is important to remember that the City of El Segundo is a "very low tax city" and receives a small portion
of local Property Tax revenue (about 6 cents for every $1 dollar of Property Tax paid). In total, Property
Tax represents approximately 16% of the estimated total General Fund revenues. This is a smaller
percentage than most California cities.
u
3. Sales Tax -- $8.373.683
This represents a decrease of $3.1 million (or -27%) from FY 2019-2020 which is due, in part, to the
economic slow -down brought on by COVID-19, as well as the City shifting to a nine -month budget for FY
2020-2021. It is anticipated that this revenue source will increase after a Coronavirus vaccine is
developed.
4. Transient Occupancy Tax (TOT) - $7,524,570
This represents a decrease of $7.7 million (or -51 %) from the FY 2019-2020 estimate of $15.2M largely
due to the economic slow -down brought on by COVID-19, which has impacted the travel and tourism
industry hard. The shift to a nine -month budget for FY 2020-2021 will result in three months less of TOT
revenue. It is anticipated that this revenue source will increase after a Coronavirus vaccine is developed.
5. Chevron Tax Resolution Agreement (TRA) -- $6,000,000
This amount reflects the annual payment from Chevron as an off -setting payment in lieu of the following
revenue sources: Gas/COGEN/Water/Electric UUT; Property Tax; Business Tax; and Sales & Use Tax.
The sum of these taxes from the current year determines the amount that Chevron makes up to meet the
guaranteed amount in the following year per the agreement.
6. Utility Users Tax (UUT) -- $4,494,047
This revenue source is the total of all the Utility Users Taxes from gas, water, telecommunications,
cogenerated electric, and electricity and is estimated to decrease $1.9 million (or 30%) from FY 2019-
2020. This is primarily due to the economic slow -down brought on by COVID-19 and the City shifting to
a nine -month budget cycle. It is anticipated that this revenue source will increase after a Coronavirus
vaccine is developed.
The following graph provides a five-year historical overview of the City's Top Six General Fund revenues:
Five Tier General Fund Top Six Revenue Sources Overview
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Estimated FY Projected FY
2019/20 2020/21
Property Tax Sales & Use Tax UUT
Other Taxes Transient Occupancy Tax Business License Tax
vii
General Fund Appropriations
Total Adopted General Fund Appropriations for the nine month FY 2020-2021 is $59,051,732, as
illustrated in the following tables:
1
Police
$ 23,175,793
$ 17,879,525
$ (5,296,268)
-22.9%
2
Fire
17,015,860
13,068,393
(3,947,467)
-23.2%
3
Public Works
8,098,326
7,253,488
(844,838)
-10.4%
4
Community Services
9,680,013
4,661,460
(5,018,553)
-51.8%
5
Non -Departmental
5,743,964
3,780,218
(1,963,747)
-34.2%
6
Development Services
3,192,691
2,609,024
(583,667)
-18.3%
7
Information Technology
2,774,264
2,440,068
(334,196)
-12.0%
8
Finance
2,767,940
2,038,556
(729,384)
-26.4%
9
City Manager
2,526,032
1,909,586
(616,446)
-24.4%
10
Transfers Out
2,749,000
1,250,000
(1,499,000)
-54.5%
11
Human Resources
1,430,937
917,405
(513,532)
-35.9%
12
City Attorney
585,450
561,950
(23,500)
-4.0%
13
City Clerk
722,838
421,157
(301,681)
-41.7%
14
City Council
319,432
260,903
(58,529)
-18.3%
Summary of General Fund Appropriations (Excluding Transfers Out)
Description
All Salaries/O.T./Other
All Benefits
Subtotal
Maintenance & Operations
Tota I
Adopted
Adopted
Percent
FY 19-20
FY 20-21
Increase
Increase
(12 months)
(9 months)
(Decrease)
(Decrease)
$ 35,092,900
$ 26,111,502
$ (8,981,398)
-26%
24,926,774
19,458,433
(5,468,341)
-22%
60,019,674
45,569,935
(14,449,739)
-24%
18,013,866
12,231,797
(5,782,069)
-32%
$ 78,033,540
$ 57,801,732
$ (20,231,808)
-26%
The decrease from the previous fiscal year reflect both the impact of COVID-19 and temporary use of
the nine -month budget cycle for FY 2020-2021. At best, department budget appropriations were limited
at the previous year's level for non -compensation items. Certain exceptions were made for costs over
which the City has limited control. The two largest General Fund departments remain Police and Fire.
These two departments consume 54% of the total General Fund Budget (not including Transfers Out),
followed by the Public Works Department at 12%.
viii
Salaries and Benefits
The General Fund continues to experience rising salary costs, CalPERS retirement costs (especially for
public safety employees due to their enhanced retirement pension formulas), Worker's Compensation
costs (mainly among public safety employees), and part-time staff costs due to increased State -
mandated minimum wage requirements. For FY 2020-2021, budgeted General Fund Salaries and
Benefits will total $45.6 million and will equal approximately 79% of the General Fund operating budget.
The following pie chart illustrates how General Fund salaries and benefits will be allocated:
FY 2020-2021
General Fund Salaries & Benefits
Workers' Compensation
(5%)
OPEB & Other
Benefits (1%
Group Insurance
(14%)
Retirement
CaIPERS (22%)
Social
Security/Medicare
(2%)
Salaries (57%)
As is the case with most California cities, El Segundo has historically budgeted to fill 100% of all budgeted
positions. Historically, cities are seldom fully staffed at 100%. For example, the City currently has about
35 vacant General Fund positions. This represents about 12% of the 284 full-time budgeted General
Fund positions. After careful analysis and discussion with City Council during the FY 2020-21 Strategic
Plan Study Session, the Adopted FY 2020-21 Budget includes freezing 20 vacant positions. These frozen
positions will result in budgetary savings of approximately $2 million. It is anticipated that after a
Coronavirus vaccine is developed and when the City's revenues improve, the City will be able to slowly
unfreeze and start to fund some of these positions.
As part of the comprehensive long-term Strategic Financial Plan that will be developed during the year,
each department will develop long-term staffing plans and reassess their organizational structure to
provide essential services in the most cost-effective manner. Each department will be required to take a
closer look at future year staffing levels. Balancing the budget by freezing positions should be viewed as
a temporary measure and not a long-term measure. Going forward, it is anticipated that all City
departments, including public safety, will be leaner and more efficient.
ix
Maintenance & Operations
The Adopted General Fund Budget includes a 32% decrease in Maintenance & Operations costs. This
decrease is primarily due to the impact of Covid-19 and the nine -month budget cycle. It is anticipated that
after a Coronavirus vaccine is developed and when the City's revenues improve, Maintenance &
Operations appropriations will be able to increase.
Charge Backs
Chargebacks consist of services provided by a General Fund department to another Governmental Fund
or Enterprise Fund. During the course of the year, the applicable operations will be charged to reflect the
cost of receiving these services and reimburse (or charge back) the General Fund. The methodology is
based on the City's formal Cost Allocation Plan.
Organizational Changes — Restructuring of Departments
In response to the significant reduction in revenues and financial challenges, the Adopted Budget
includes the following organizational changes to improve customer service delivery, customer
experience, and operational efficiencies:
• Establishment of a Communitv Services Department
This department reflects the merger of the former Library Department and Recreation and Parks
Department. The new department structure will start with two Divisions: 1) Library Division; and,
2) Recreation Division. It is possible that a third division dedicated to "Arts and Culture" will be
established in the future. For now, arts and culture programming will be part of the Library
Division. Parks maintenance (landscaping services) has moved to the Public Works Department.
Oversight of Park Vista Senior Housing Project is now part of the Development Services
Department.
• Development Services Department (name change)
The name of the former "Planning and Building Safety Department" was changed to
"Development Services Department" to better reflect the broader focus of land -use related
services provided. A new Housing Division has been established to manage the City's overall
affordable housing effort. This will include managing the new "Affordable Housing Fund,"
production and management of new affordable housing units, and oversight of the Park Vista
Senior Housing Project.
• Finance Department (consolidated functions
The City Treasurer's Office is now part of the Finance Department to achieve greater internal
efficiencies. The City's overall Risk Management function, which used to be divided among the
Finance Department and Human Resources Department, has been consolidated into the Finance
Department. A new Risk Manager position has been established to manage both the City's
Workers Compensation and General Liability operations. This will produce both recurring
financial savings and operational efficiencies to the broader City organization.
• Information Technology Services Department (name change)
In an effort to more accurately reflect the services provided, the name of the former "Information
Services Department" was changed to "Information Technology Services Department."