TOWN OF
HILLSBOROUGH, CALIFORNIA
ADOPTED BUDGET
FISCAL YEAR 2007- 2008
With Preliminary Budgets
For Fiscal Years 2008- 2009 & 2009- 2010
WHAT’S INSIDE
PREFACE
Budget Process Overview i
Includes a concise narrative description of the budget process from initial
planning to preparation, adoption and implementation.
Budget Calendar iii
A detailed budget calendar - Fiscal Year 2007/ 08 budget
Section A
INTRODUCTION
Budget in Brief 1
An overview of the City’s long and short- term goals along with explanation
about priorities and issues for the budget year.
Where We Are and our Mission Statement 7
Location and a concise statement of what the City works toward to.
Meet the City Council 8
Pictures and term information of Council Members
Organizational Chart 9
City organization showing Council Members and Management Staff
Advisory Bodies 10
List of Volunteer Citizens for the City’s Advisory Boards and Commissions
Awards for Distinguished Budget Presentation 11
Includes awards received for the previous year’s budget documents.
Section B
POLICIES AND OBJECTIVES
Budget and Fiscal Policies 13
Discussion of the long- term financial policies used during the budget
process.
Major City Goals 22
Shows list of City goals and objectives used as policy framework by the
departments in developing their individual budgets
Linking City Goals to Budget 23
Shows a crosswalk or link of goals to the current budget
Section C
BUDGET SUMMARIES
Fund Structure and Basis of Budgeting 25
Shows budgetary fund structure including description of each fund and
discusses “ basis of accounting” used.
Operations and Accounting Structure Table 27
Shows the relationship between functional units, major funds, and non-major
funds in the aggregate.
Budget Graphics and Summaries
Includes charts and tables summarizing revenues, expenditures and
changes in fund balance and the overall budget document; also includes
summary of regular positions..
ALL FUNDS
Combined Revenues, Expenditures and
Changes in Fund Balance
Fiscal Year 2004/ 05 28
Fiscal Year 2005/ 06 29
Fiscal Year 2006/ 07 30
Fiscal Year 2007/ 08 31
Fiscal Year 2008/ 09 32
Fiscal Year 2009/ 10 33
Combined Funding Sources 34
Combined Expenditures by Type and
Function 35
Combined Expenditures by Type 36
Combined Operating Expenditures
By Function 37
By Object 38
Combined Capital Expenditures by Function 39
Combined Debt Service Expenditures by
Function 40
Authorized Regular Positions by Function 41
Summary of Changes in Fund Balance
Fiscal Years 2007/ 08, 2006/ 07 &
2005/ 06 42
GENERAL FUND
Summary of Revenues, Expenditures and
Changes in Fund Balance 43
Operating Expenditures
By Function 44
By Object 45
Extended Financial Forecast 2005- 2015 46
Section D
OPERATING PROGRAMS
Operating Expenditure Summaries
Includes summary of departmental expenditures, mission, description,
goals, objectives and productivity measures.
Operating Expenditures by Function and by
Department 47
Operating Expenditures by Object: All Funds 48
Operating Expenditures by Object:
General Fund 49
Public Safety
Police 50
Fire 54
Public Utilities
Water 58
Wastewater 62
Streets
Streets 65
Leisure and Social Activities
General Government 68
WHAT’S INSIDE
Community Development
Planning 69
Building 73
General Government
Legislative and Policy
City Council 76
General Administration
City Manager’s 78
Public Works Administration 81
Legal Services
City Attorney 84
Support Services
Finance 85
General Services 88
Section E
CAPITAL IMPROVEMENT PLAN ( CIP)
Includes information of major capital projects and prior year’s highlights.
Summary of CIP Expenditures by Function 89
CIP Expenditures Project Detail by Function
and Department 90
Individual Project Descriptions 93
Vehicle Replacement Schedule 113
Miscellaneous Replacement Schedule 114
Section F
DEBT SERVICE REQUIREMENTS
Includes summary information about outstanding debt by function.
Debt Summary 115
Summary of Annual Payments by Function
and Funding Source 117
Computation of Legal Debt Margin 118
Section G
CHANGES IN FUND BALANCE
Includes combining and individual fund balance statements reflecting
revenues, expenditures and changes in fund balance..
Combining Fund Balance Statements
All Funds Combined 119
All Governmental Funds 120
All Enterprise Funds 121
All Non- Major Governmental Funds 122
All Special Revenue Funds 123
Individual Fund Balance Statements
General Fund 124
Special Revenue Funds
Public Safety Special Tax Fund 125
Gas Tax Fund 126
Measure “ A” Tax Fund 127
Police Grants Fund 128
Capital Project Funds 129
Internal Service – Replacement Fund 130
Enterprise Funds
Water Fund 131
Sewer Fund 132
Section H
FINANCIAL AND STATISTICAL TABLES
Revenue Summaries
Includes descriptions of major revenues and revenue assumptions used in
the development of the budget.
Summary of Key Revenue Assumptions 133
Revenues by Major Category and Source 143
Interfund Transactions
A summary of inter- departmental and inter- fund transfers.
Operating Transfers 146
Staffing Summary 147
A listing of regular positions by function and by department
Other Statistical and Financial Summaries:
2007/ 08 Appropriations Limit Calculation 149
A statement of the City’s compliance to the State’s appropriations
limitation law.
Appropriations Limit – Extended Outlook 150
Revenue and Expenditure Trends
( All Governmental Funds):
Last Five Completed Fiscal Years 151
Includes summaries showing revenue and expenditure trends for
the last five years for governmental funds
Comparison to Other Cities
A comparison of the Town’s financial transactions to its neighbors
and similar- size California Cities 152
Community Profile and Statistic 153
Includes an overview of Hillsborough and demographic statistics
WHAT’S INSIDE
Section I
BUDGET REFERENCE MATERIALS
Summary of Major Policy Documents 159
Includes a list of policy documents that guide the preparation and execution
of the City’s Financial Plan and its implementation
Budget Resolution 161
Includes the City Council resolution adopting the budget
Section J
APPENDICES
A – Schedule of Fees and Charges
A master list of the City’s fees and charges for the budget year
B – Cost Allocation Plan
Cost allocation plan used to determine total costs of providing
specific city services and the bases of allocation used to
distribute program costs.
C – Line Items Departmental Budget
Detailed departmental budget to be utilized by the individual
departments for their operations throughout the budget year.
BUDGET GLOSSARY
A listing of terms and abbreviations used throughout this
Document.
PREFACE
PREFACE
BUDGET PROCESS OVERVIEW
i
Recently, the Town updated its budget and fiscal policy
to integrate a three- year extended financial outlook
emphasizing long- range planning and effective program
management. Appropriations continue to be made
annually under this process; but the preliminary budget
for the next two years out, serve as the foundation for
preparing the subsequent budgets.
Purpose of the Budget
The fundamental purpose of the City’s budget is to link
what we want to accomplish for the community with the
resources necessary to do so. The budget process
does this by setting City goals and objectives;
establishing reasonable timeframes and organizational
responsibility for achieving them and allocating
resources for programs and projects. To this end, the
budget serves four roles:
􀂃 Policy Document. Sets forth goals and objectives
to be accomplished and the fundamental fiscal
principles upon which the budget is prepared.
􀂃 Fiscal Plan. Identifies and appropriates the
resources necessary to accomplish objectives and
deliver services and ensures that the City’s fiscal
health is maintained.
􀂃 Operations Guide. Describes the basic
organizational units and activities of the City.
􀂃 Communications Tool. Provides the public with a
blueprint of how public resources are being used
and how these allocations were made.
Major City Goals
Linking important objectives with necessary resources
requires a process that identifies key goals at the very
beginning of budget preparation. The City begins this
process with key management people holding a series
of budget meetings to discuss current year’s goals that
guide the departments in their budget preparation. The
status of prior goals is discussed and departments
present their individual goals. Thereafter, priorities and
work programs are set. Every other year, in- depth
workshops are held to further review the City’s
extended fiscal outlook and discuss Council’s values,
goals and short- term objectives. City staff then
prepares the proposed budget based on the Council’s
policy guidance.
Financial Plan Policies
Formally articulated budget and fiscal policies provide
the foundation for preparing and implementing the
budget while assuring the City’s long- term fiscal
health. Included in this budget document, these
policies cover a broad range of areas such as user
fee cost recovery goals, enterprise fund rates,
investments, capital improvement management, debt
management, capital financing, fund balance and
reserves, human resource management and
productivity.
Preparation and Review Process
The budget development is headed by the City
Manager and the Finance Director together with the
city’s department heads. The following discusses the
general approach under the City’s budget process:
The budget process begins with Finance sending out
budget instructions to the operating departments.
Concurrently, Finance prepares revenue projections
utilizing sources that include economic trends as
reported in the national media, economic and fiscal
information developed by the State and materials
prepared by various governments. Similarly,
personnel costs are projected based on factors such
as the consumer price index ( CPI) and related
information from vendors providing these services. A
summary of key revenue assumptions are fully
discussed in Section H of this budget document.
At the workshop as discussed above, departments
present their goals and their initial budget proposals.
Together with revenue forecasts, these proposals are
comprehensively reviewed and priorities and
allocations determined. A detailed budget is then
prepared and the City Manager issues the preliminary
budget for public comment. A series of workshops is
PREFACE
BUDGET PROCESS OVERVIEW
ii
held with both the Financial Advisory Committee and
the City Council leading to a public hearing and Council
adoption of the budget by June 30.
Mid- Year Reviews. The Council formally reviews the
City’s financial conditions and amends appropriations, if
necessary, six months after the beginning of each fiscal
year.
Interim Financial and Project Status Reports. On-line
access to “ up- to- date” financial information is
provided to staff throughout the organization.
Additionally, comprehensive financial reports are
prepared monthly to monitor the City’s fiscal condition,
and more formal reports are issued to the Council on a
quarterly basis. The status of major program
objectives, including Capital Improvement Program
( CIP) projects, is also periodically reported to the
Council on a formal basis.
Administration
As set forth in the Town policies, the department heads
may make transfers of appropriations within the
department. The City Manager may transfer budgeted
amounts within any fund. Any revisions that alter the
total expenditures of any fund must be approved by the
City Council. The legal level of budgetary control ( i. e.
the level at which expenditures may not legally exceed
appropriations) is the fund level.
Budget Calendar
A calendar is prepared for the annual budget
development. This budget year’s budget calendar is
presented on the next page.
PREFACE
DETAIL BUDGET CALENDAR – FISCAL YEAR 2007- 2008
iii
Date Tasks Description
December 2006 Forms to update Fees and Charges distributed to departments
January 2007 Departments discuss staffing changes ( if any) with City Manager and submit
staffing changes to Finance. If requesting for a new position or program, please
complete a “ Request for New Position or Program Change”.
Finance updates salary projections.
Finance updates revenue projections.
February 20,2007 Finance distributes departmental budget worksheets to departments.
Finance distributes other budget forms to departments:
A. Request for Capital Equipment
B. Capital Improvement Request
C. Budget Narrative Template ( or previous budget’s version)
D. Current Organizational Chart
E. Performance or Workload Measures
Feb – March 2007 Informal budget meetings among Finance, City Manager and Departments
On or before March 8, 2007 Departments submit the following budget documents to Finance:
A. Completed departmental budget worksheets
B. Request for Capital Equipment
C. Capital Improvement Request
D. Proposed changes to Fees and Charges
E. Budget Narrative
F. Updated performance or workload measures
March 15,2007 Finance returns budget documents to departments for review.
NONE HELD THIS YEAR MANAGEMENT BUDGET WORKSHOP
March 19 – 20, 2007 Finance reviews revenue projections with departments.
Management reviews and balances draft budget and approves capital
improvement requests.
March 21 – 27, 2007 Budget meetings ( Departments, City Manager, Finance)
March 21 – 2: 00 PM POLICE
March 26 – 9: 00 AM FIRE
March 26 – 10: 00 AM ADMINISTRATION
March 26 – 1: 30 PM PLANNING
March 26 – 2: 30 PM BUILDING
March 27 - 1: 30 PM PUBLIC WORKS
PREFACE
DETAIL BUDGET CALENDAR – FISCAL YEAR 2007- 2008
iv
March 27 – April 26, 2007 City Manager prepares budget submittal letter.
Finance prepares PROPOSED BUDGET DOCUMENT
April 26, 2007 Finance distributes proposed operating and capital budget to Financial Advisory
Committee.
April 30, 2007 ( continued to
May 3 if needed)
Finance submits proposed operating and capital budget to Financial Advisory
Committee
April 30 and May 7, 2007
Public notice for fees and charges [ Two publications with at least 5 days
between the dates of the first and last publication] – Government Code § 66018
and § 6062a.
April 30, 2007 Finance distributes proposed operating and capital budget to Council
May 14, 2007 Council holds public hearing ( if necessary, continues to 2nd meeting) and adopts
the following:
• Budget including Cost of Allocation Plan [ requires public hearing]
• Resolution to adopt sewer charges for Fiscal Year 2007/ 2008
• Fees and charges [ requires public notice and public hearing]
• Public safety special tax
• Interim Modifications to Business License Tax
May 24, 2007 Documentation for the calculation of the Appropriations Limit made available to
the public [ at least 15 days prior to the June 11, 2007 meeting] – Government
Code § 7910.
June 11, 2007 Council holds public hearing and adopts the following:
• Appropriations limit [ Consent calendar but should be approved by a roll
call vote]
Week of June 18 and
June 25 2007
Public notice on collection of sewer charges [ once a week for 2 successive
weeks with at least 5 days between publications] – Government Code § 6062a.
June 30, 2007 Adopted Operating and Capital Budget and Fees and Charges distributed to
departments
July 1, 2007 Adopted fees and charges take effect
July 9, 2007 Council holds public hearing and adopts the following:
• Collection of sewer charges on the county tax roll [ requires 2- week public
notice] – Government Code § 5473.1 and § 6066.
• Collection of storm drainage charge and the public safety special tax on
the county roll
August – September Production and Distribution of the Adopted Budget Document
Section A
INTRODUCTION
INTRODUCTION
BUDGET IN BRIEF
1
OVERVIEW
Although there were some improvements to the local
economy, governmental agencies in the area,
continue to face fiscal challenges. It is with this
environment that the Town of Hillsborough (“ The
Town”) continues to take a proactive approach to
deliver cost effective public services.
The Town is continuing the policy that in budgeting
for a particular year, it will look and plan ahead by
presenting preliminary budgets for the next two
years. With this budget cycle, concerned about
further fiscal challenges on the horizon, an extended
financial forecast through FY 2014- 2015 for the
General Fund is also presented ( see page 46 of the
budget document for forecast details).
Mindful that personnel costs represent the single
highest cost for service operations like the Town’s,
initial requests from the departments for 7 additional
positions to enhance and increase service level in
various areas for the next 4 years, were not
accommodated. Instead, the Town approved to add
only one new maintenance worker in the Water
Department to meet government mandates, and
looked for other ways to increase service levels.
Staff has substantially completed the reformat of the
budget document from a “ Line- item” budget to a
“ Program” budget format. Each of the departments
will have their budgets organized into the various
services and programs each undertake. It is
anticipated that the new presentation will provide
much better information concerning budget
allocation priorities and service changes.
BUDGET HISTORY
The Town’s 2007/ 08 ( fiscal year runs from July 1 to
June 30) budget totals $ 36.6 million, a 7% decrease
over 2006/ 2007 mainly from a $ 3.5 million variation
in major construction projects. Operating
expenditures register a 4% increase over that of the
current fiscal year. The Town’s budget history over
the past four years is shown in the following graph
and table:
Operating
Capital
Debt Service
Operating
Capital
Debt Service
Operating
Capital
Debt Service
Operating
Capital
Debt Service
$ 0
$ 5
$ 10
$ 15
$ 20
$ 25
$ 30
$ 35
$ 40
Millions
04/ 05 05/ 06 06/ 07 07/ 08
k
04/ 05 05/ 06 06/ 07 07/ 08
Operating $ 22,475,328 $ 24,757,851 $ 27,274,795 $ 28,304,646
Capital 5,641,344 7,965,195 9,507,032 6,022,076
Debt 1,917,178 2,064,711 2,361,714 2,254,748
TOTAL $ 30,033,850 $ 34,787,757 $ 39,143,541 $ 36,581,470
In terms of overall approach to the budget, the following
assumptions, considerations, and priorities guided the
Town’s deliberations, recommendations and the final
approvals:
􀂃 Continue to provide a safe and healthy community
for the residents ensuring that Police and Fire have
the resources they need ( personnel and
equipment) to deliver quality services to its citizens.
􀂃 Continue to improve its infrastructure including
streets, water and sewer. This year’s budget will
focus on increasing level of service for streets
improvement to improve its current rating ( currently
identified as fair from the last assessment), in
addition to the on- going program to rehabilitate the
water and sewer infrastructure. The latter is
approaching the end of the part of the program
funded through a bond issue. Subsequently, the
Town will work towards funding the program
through service rate charges.
􀂃 Continue to improve delivery of services citywide,
enhancing efficiency through the use of modern
technology and processes.
􀂃 Continue to maintain competitive compensation for
its employees.
􀂃 Maintain long- term fiscal health. Continue to work
from a balanced budget for governmental
operations. The Town also implemented
INTRODUCTION
BUDGET IN BRIEF
2
recommendations from a comprehensive study
of the water and sewer operations including
alignment of service charges that will prepare
the Town to pay for its share of the capital
improvements planned for its water source ( San
Francisco Hetch Hetchy system) and to continue
the enterprise capital program out of service
charges.
Economic assumptions for revenues assumed
moderately aggressive revenue growth:
FY 2007/ 08 Economic Growth
Property tax 7%
Construction permits & business license 3%
Motor vehicle license fees 2%
Franchise fees 2%
Assumptions used in non- discretionary expenditures
changes were as follows:
FY 2007/ 08 Expenditures Assumptions
Salaries ( contractual compliance) 4%
CALPERS retirement rates:
Police
Fire
Miscellaneous
37.472%
28.427%
25.459%
Health insurance 15%
Workers Compensation 5%
CITY- WIDE REVENUE & EXPENDITURE
OVERVIEW
In total, the Town’s budget decreased by 7% over
06/ 07 mainly from the variation in capital projects.
Governmental/
Internal
Service Funds
Enterprise
Funds
Total
Operating $ 18,226,838 $ 10,077,808 $ 28,304,646
Capital 1,122,676 4,899,400 6,022,076
Debt Service 2,254,748 2,254,748
TOTAL $ 19,349,514 $ 17,231,956 $ 36,581,470
Funding for above comes mainly from taxes for
governmental operations and from service charges
for the enterprise ( water and sewer) operations. The
following chart reflects the citywide funding sources
for the budget year. The revenues for the Internal
Service Funds have been excluded from the totals
since these funds were transferred from the other
departments. The $ 1.4 million excess of funding
sources over expenditures belongs to the water and
sewer operations as discussed earlier.
2007- 2008 Funding Sources - $ 38 Million
( Excludes Transfers to Reserves Fund)
Taxes
$ 13,571,160
36%
Proceeds
from
borrowing
$ 4,765,000
13%
Permits
$ 925,200
2%
All others
$ 138,103
0%
Enterprise
service
charges
$ 13,570,000
36%
Service
charges
$ 1,514,700
4%
Use of Assets
$ 1,865,285
5%
Intergovern-mental
$ 1,667,500
4%
`
Though total expenditures decreased by 7% over FY
2006/ 2007, operations increased by 4% resulting
mainly from contractual obligations with labor groups.
Approximately 47% of the Town’s total budget is spent
on public safety. That is followed by 36% for public
utilities. The following graph breaks down the $ 28.3
million operations cost by function.
2007- 2008 Operating Expenditures by Function -
$ 28.3 Million
Community
Development
$ 1,481,851
5%
Leisure &
Social
Services
$ 847,900
3%
Streets
$ 1,477,101
5%
Public Safety
$ 13,408,293
47%
Public
Utilities
$ 10,077,808
36%
General
Government
$ 1,011,693
4%
The following graph breaks down the same information
by object code showing personnel costs as the largest
component of the $ 28.3 million operational costs.
INTRODUCTION
BUDGET IN BRIEF
3
2007- 2008 Operating Expenditures by Object - $ 28.3
Million
Personnel
Services
$ 18,801,987
66%
Materials &
Services
$ 3,664,282
13%
Transfers to
Internal
Service
$ 221,997
Contract 1%
Services
$ 5,616,380
20%
KEY BUDGET CHANGES
Staffing Changes
􀂃 The Police Lieutenant position left unfilled since
FY 2003- 2004 to help balance the prior years’
budget is fully funded in this budget year.
􀂃 To improve workflow and plan- checking
processes and enhance customer service for the
permitting process – a vital function in the
Town’s operations, a new Permit Technician is
allocated in the Building Department. Funds for
this new position will partly come from cost
savings from part- time help and contractual
services both heavily utilized by the department
in the previous years.
􀂃 To improve effectiveness, the City Planner
position ( vacated with retirement) is reclassified
to a Building and Planning Director who will
oversee both Planning and Building operations.
􀂃 To enhance organizational effectiveness in the
combined fire services between Burlingame and
Hillsborough, the Administration Division Chief
position is eliminated; the Administrative
Secretary is reclassified to Administrative
Support Officer; and one senior clerk is moved
from ½ to ¾ FTE position.
􀂃 To increase service levels in streets
improvement function, the Town is increasing
the level of work from the normal $ 400,000
annual commitment to $ 700,000. The Town will
continue to utilize third- party vendors to perform
this job; funds for the additional level will come
from the vehicle impact fee adopted by Council last
year, and available federal and state grants.
􀂃 One additional maintenance worker is authorized
for the Water Department to help address on- going
system maintenance needs and comply with state
mandates on water quality.
Special Programs
􀂃 The adopted budget included a $ 25,000 one- time
contribution to the San Mateo library for additional
programs including extended library hours.
􀂃 $ 10,000 was budgeted for consultant costs to
perform an actuarial study needed to comply with a
new governmental accounting standard ( GASB 45)
for accounting and reporting other post employment
benefits ( OPEB).
􀂃 Funds were appropriated ($ 99,600) to continue and
expand the Disaster Preparedness Program
ensuring appropriate training for personnel, and
to combine plans with the City of Burlingame for
cost efficiency and effectiveness.
􀂃 $ 2,000 one- time contribution to the Human
Investment Project ( HIP) Housing was also
approved.
Capital Expenditures
􀂃 Funds to replace dispatch equipment were
approved for $ 40,676.
􀂃 $ 85,500 was allocated for various improvements in
the Police Department.
􀂃 To continue the long- term strategic plan for
improved processes by using modern technology,
$ 60,000 was earmarked to purchase and
implement an Electronic Document Management
System ( EDMS) including automating the agenda
preparation process.
􀂃 $ 50,000 was appropriated to update the Town’s
telephone system.
􀂃 A breaker hammer ($ 17,900) in FY 2007/ 2008 was
authorized and an asphalt zipper ($ 80,000) is to be
considered in FY 2008/ 2009.
􀂃 Scanners for the Building Department for its plans
were approved for $ 19,600.
􀂃 Replacements for Rescue 33 ($ 351,800) and
breathing apparatus ($ 185,000) for the Fire
Department were to be considered in Fiscal Year
2008/ 2009.
INTRODUCTION
BUDGET IN BRIEF
4
􀂃 The Housing Element update ($ 80,000) was
also to be considered for Fiscal Year 2008/ 2009.
􀂃 Funds for an excavator with trailer ($ 60,900) and
a Water Quality Control Van ($ 60,000) in the
Water Department were approved.
􀂃 A utility vehicle ($ 13,500) for the Sewer
Department was also approved.
􀂃 Four vehicles are expected to be replaced in the
Internal Service Fund for a total amount of
$ 183,600; all other replacements including
furniture and computers total $ 16,600.
􀂃 The Water and Sewer Capital Improvement Plan
funded from the $ 12 million debt issued on April
2006 continues as follows:
Project Name Amount
Cherry Creek Pump Station $ 1,000,000
Vista Tank Site Improvement 1,500,000
Fire Main Projects 400,000
Advanced Meter Reading Project 500,000
Sewer Lining Phase 4 700,000
Elimination of Hayne Pump Station 400,000
Storm Drain Replacement 265,000
TOTAL $ 4,765,000
GENERAL FUND
The General Fund is the fund that receives
undesignated revenues which can be budgeted for
any appropriate purpose. This fund finances the
majority of the traditional services associated with
city government.
The following chart presents the approved General
Fund budget for FY 2007/ 2008, the preliminary
budget for the next two years as well as the
compliance to the Town’s fiscal policy of maintaining
the General Fund recommended level of reserves at
30% of operating expenditures.
Adopted
2007/ 08
Preliminary
2008/ 09
Preliminary
2009/ 10
Revenues $ 18,173,638 $ 19,115,180 $ 19,973,686
Expenditures $ 18,173,638 $ 19,115,180 $ 19,973,686
% of change 2.5% 5.2% 4.5%
Fund Balance $ 9,802,887 $ 9,802,887 $ 9,802,887
Recommended
Minimum Level Of
Reserves
$ 5,452,091
$ 5,734,554
$ 5,992,106
Revenues
Total General Fund revenues are projected to increase
by 2.5% in FY2007- 2008 as reflected in the following
table:
Adopted
2007/ 08
Revised
2006/ 2007
Change
Property taxes $ 9,487,600 $ 8,876,100 $ 611,500
Excess ERAF 755,000 990,500 ( 235,500)
Special public
safety tax
2,228,560
2,228,560
- 0 -
Business license 628,200 615,900 12,300
Construction
permits
790,200
774,650
15,550
Vehicle license fee 737,700 723,200 14,500
Franchise fees 519,975 521,242 ( 1,267)
Service charges 1,095,700 1,081,625 14,075
All others 1,930,703 1,919,570 11,133
TOTAL $ 18,173,638 $ 17,731,347 $ 442,291
% of change over
prior year
2.5%
The Town’s major revenues are derived from property
taxes which have been stable through the years with
property valuation going up an annual average of 7% in
the most recent years. The special public safety tax, a
non- ad valorem tax on parcels of real property
approved by the voters on June 1998, has reached the
maximum allowed by law and will be flat.
The Town continues to receive excess Educational
Revenue Augmentation Fund ( ERAF) which represents
that portion of the ERAF tax shift available after
distribution to school districts to meet their revenue
limit.
Service charges are reviewed annually and adjusted as
needed. These fees follow the Town’s objective to
diversify its revenue base and work towards the user
fee cost recovery goals discussed in the Town’s fiscal
policies.
The following graph depicts the Town’s General Fund
revenue sources:
INTRODUCTION
BUDGET IN BRIEF
5
WHERE THE MONEY COMES FUND -
GENERAL FUND
Property taxes
53%
Motor vehicle
license fee
4%
Franchise fees
3%
Service charges
6%
Construction
permits
4%
Special public
safety tax
12%
Business license
tax
3% Excess ERAF
4%
All others
11%
Expenditures
Similarly, the General Fund FY 2007/ 2008
appropriations are projected to increase by 2.5% as
summarized below:
Adopted
2007/ 08
Revised
2006/ 07
Change
Public safety $ 13,307,793 $ 12,851,918 $ 455,875
Streets 1,479,801 1,483,127 ( 3,326)
Leisure & Social
Services
847,900
823,200
24,700
Community
Development
1,501,451
1,613,691
( 112,240)
General
Government
1,036,693
959,411
77,282
TOTAL $ 18,173,638 $ 17,731,347 $ 442,291
% of change over
prior year
2.5%
As further shown in the graph below, public safety
( police and fire) is the Town’s largest General Fund
cost.
WHERE THE MONEY GOES - GENERAL
FUND
Public Safety
73%
General
Government
6%
Streets
8%
Leisure &
Social
Activities
5%
Community
Development
8%
ASSET REPLACEMENT FUND
The following table illustrates compliance to the reserve
requirement for the Asset Replacement Fund pursuant
to the Town’s fiscal policy:
Adopted
2007/ 08
Preliminary
2008/ 09
Preliminary
2009/ 10
Projected working
capital reserved for
asset replacement
$ 2,366,218
$ 2,052,290
$ 1,816,787
Reserve
requirements @
20% of asset
$ 627,148
$ 782,128
$ 864,528
ENTERPRISE FUNDS – WATER AND SEWER
OPERATIONS
Following the recommendations from the
comprehensive water and sewer rates study mentioned
earlier, the adopted budget reflected the changes to the
water rates structure including increasing the fixed
meter charge and changing tier breakpoints and flow
charges to maintain a stable revenue stream for the
long- term fiscal health of the enterprise. These
changes are expected to bring about approximately a
6% increase in revenues each year for the next two
years and an 8% increase each year for the following
two years. The first rates changes took effect in
February 2007 and subsequent annual rates changes
are to take effect on January 1 of 2008, 2009 and 2010.
Likewise, residential sewer rates are to increase by 3%
on July 1 of each of the next 4 years. Rates for non-residential
accounts will be computed based on their
relationship to an equivalent dwelling unit ( EDU).
Summarized below are the operations’ adopted
budgets for FY 2007/ 2008, debt service coverage, and
compliance to the Town’s reserve requirements.
Water
Sewer
Combined
Operations
OPERATIONS
Revenues $ 7,908,000 $ 6,177,000 $ 14,085,000
Expenses 8,387,010 5,383,009 13,770,019
Change in net
assets ( GAAP
BASIS)
( 479,010)
793,991
314,981
Beginning net
assets
18,869,234
12,721,682
31,590,916
Ending net assets $ 18,390,224 $ 13,515,673 $ 31,905,897
INTRODUCTION
BUDGET IN BRIEF
6
Excess
( BUDGETARY
BASIS)
$ 402,804
$ 1,215,240
$ 1,618,044
DEBT SERVICE
Expenses before
debt service and
excluding
depreciation
$ 6,644,457
$ 3,567,751
$ 10,212,208
Revenues avail-able
for debt
service
$ 1,263,543
$ 2,609,249
$ 3,872,792
Debt Service $ 666,703 $ 1,107,108 $ 1,773,811
Coverage $ 1.90 $ 2.36 $ 2.18
RESERVES
Projected Working
Capital
$ 11,363,536
$ 10,833,742
$ 22,197,278
Reserve
Requirement
$ 2,181,039
$ 1,265,352
$ 3,446,391
The Town continues to be assigned the high credit
ratings of AA+ by Fitch and AA by Standard & Poor’s
for all of its bond issues.
EMPLOYEE COMPENSATION AND BENEFITS
As discussed earlier, the Town’s priority to maintain
competitive compensation for its employees has
enabled it to build a highly effective and efficient
workforce with very low turnover. Continuation of this
strategic policy will further promote a strong work
environment. Pursuant to an agreement with the
Fire labor group, the Town will implement a
retirement benefit improvement for the Fire Group by
enhancing its retirement plan to 3% @ 55 from 2%
@ 50. Continuing to look into costs containment,
the Town has successfully negotiated with all labor
groups except one, to change the more expensive
benefit of providing health insurance to retired
employees to the more reasonably- cost benefit of
Health Savings Account for later hires. As of date,
33% of the city’s workforce is in this new program.
The Town continues to maintain excellent labor
relations and recently concluded negotiations for a
five- year contract with the Public Works/ Clerical
Group. This year’s budget reflects the Town’s
commitment to offer a range of benefits that include
retirement, health and life insurances, income
protection insurances, savings plans and other tax
deferment programs.
MORE FISCAL CHALLENGES DOWN THE ROAD
Unfunded Liability for Other Post Employment
Benefit ( OPEB)
Until recently when it starts to negotiate with the labor
groups for a reduced level of post employment benefit
for new hires, the Town provides post- retirement health
benefits, administered through CalPERS and other
compensated absences. There currently, are 80
retirees receiving the benefits. The Town finances the
plan on a pay- as- you- go basis. In July 2001, the Town
started to put aside minimal amounts from the General
Fund towards a reserve to fund this liability. The
planned transfers have either been trimmed or deferred
altogether to help balance the previous budgets. An
informal valuation done on June 30, 2000 estimates the
Town’s unfunded actuarial liability for qualified
employees, are in excess of $ 10 million. As of the end
of fiscal year 2005/ 06, the Town has put aside
approximately $ 970,000 towards this purpose.
A new accounting standard now requires the Town to
identify the liability exposure for this benefit. Funding
this liability is a big concern that needs to be addressed
as the Town implements the standard. Included in this
budget are funds for an actuarial study to determine the
Town’s liability.
Health Care and Workers Compensation Costs
There is no relief in sight for health care costs which
have been increasing in double digits. While costs
containment were implemented by way of charging
higher co- payments to employees, double digits
increases are still expected in this budget cycle. Same
can be said with workers compensation costs as the
Town experiences some lingering industrial disabilities.
CONCLUSION
The Town staff takes pride in submitting a balanced
budget in FY 2007/ 2008. This achievement would not
be possible without the collaboration of the Town
departments and more importantly, the Financial
Advisory Committee and City Council’s leadership. It is
with this vision of identifying and confronting future
fiscal challenges that the Town can continue to provide
the highest level of service to its citizens.
INTRODUCTION
WHERE WE ARE AND OUR MISSION STATEMENT
7
The government of the Town of Hillsborough exists to serve the needs
of our diverse community by providing for its safety and well- being,
while promoting a superior quality of life.
The Town of Hillsborough
lies in the heart of the San
Francisco Peninsula.
INTRODUCTION
MEET THE CITY COUNCIL
8
Mayor Catherine U. ( Kitty) Mullooly
Fire Department Commissioner
Vice- Mayor Christine M. Krolik
Public Works Department Commissioner
Council Member John J. Fannon
Community Development Department Commissioner
Council Member Thomas M. Kasten
Police Department Commissioner
Council Member D. Paul Regan
Administration & Finance Departments Commissioner
9
ORGANIZATIONAL CHART AND PRINCIPAL OFFICIALS
FIRE FINANCE MANAGER’S COMMUNITY
DEVELOPMENT
POLICE PUBLIC WORKS
Paramedic General Accounting Human Resources PLANNING: Patrol Streets
Suppression Financial Services Records Management/ Design Review Investigation Storm Drainage
Disaster Planning
Prevention
Utility Billing
Investments/ Cash
Elections
Risk Management
Environmental
Assessment
Dispatch
Alarm Program
Water
Wastewater
Vegetation
Management
Management
Payroll
General Plan
Zoning
Neighborhood Services
Traffic Safety
Municipal Service
Center
Information Technology
Debt Management
BUILDING:
Permits
Inspection
CITIZENS OF
HILLSBOROUGH
CITY COUNCIL
Mayor Catherine Mullooly
Vice- Mayor Christine M. Krolik
Council Member John J. Fannon
Council Member Thomas M. Kasten
Council Member D. Paul Regan
ADVISORY BODIES
Architecture & Design Review Board
Communication Advisory Committee
Financial Advisory Committee
CITY MANAGER
Anthony Constantouros
CITY ATTORNEY
Norm Book
FIRE CHIEF
Don Dornell
FINANCE
DIRECTOR
Maria Edna J.
Masbad
ASSISTANT CITY
MANAGER
Katharine Leroux
POLICE CHIEF
Matthew O’Connor
PUBLIC WORKS
DIRECTOR
Martha DeBry
CITY CLERK
Miyuki
Yokoyama
CITY
ENGINEER
Cyrus Kianpour
DIRECTOR OF
PLANNING &
BUILDING
Elizabeth Cullinan
Chief Building
Official
John Mullins
JOINT POWER BOARDS
Hillsborough Recreation JPA Board
Central County Fire Board
INTRODUCTION
ADVISORY BODIES
10
ARCHITECTURE & DESIGN REVIEW BOARD
John J. Fannon, Commissioner
Jennifer Werbe, Chair
Walter Heyman
George Jewett
Mark Heine
Charlie Barnett
Bruce Herman, Alternate
FINANCIAL ADVISORY COMMITTEE
D. Paul Regan, Commissioner
Jess “ Jay” Benton, Chair
Allason Clark Jr.
Josh Cooperman
John Lockton Jr.
Larree M. Renda
Alvin Royse
CITIZENS COMMUNICATION ADVISORY COMMITTEE
Catherine U. Mullooly, Commissioner
Diana Witzel, Chair
Marie Chuang
Candace Lyche
Janet MacGregor
Beatrice “ BeBe” Trinkner
HILLSBOROUGH RECREATION
D, Paul Regan, Commissioner
Christine Krolik, Commissioner
CODE ENFORCEMENT HEARING PANEL
Jim Curry
Wallace Baldwin
INTRODUCTION
AWARDS
11
The Government Finance Officers Association of the United States and Canada ( GFOA) presented a
Distinguished Budget Presentation Award to the Town of Hillsborough, California for its budget for the fiscal year
beginning July 1, 2006.
In order to receive this award, a governmental unit must publish a budget document that meets program criteria
as a policy document, as an operations guide, as a financial plan and as a communication device.
The award is valid for one year only. We believe our current budget continues to conform to program
requirements.
INTRODUCTION
AWARDS
12
The California Society of Municipal Finance Officers presented a Certificate of Award for Excellence in Operating
Budgeting to the Town of Hillsborough for the fiscal year 2006- 07 Budget. This certificate reflects an outstanding
budget document and the underlying budgeting process through which the budget is implemented. This award is
valid for one year only. We believe our current budget continues to conform to program requirements.
Section B
POLICIES AND OBJECTIVES
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
13
POLICY NO. 409 - BUDGET AND FISCAL POLICIES Revised: 1/ 9/ 06 ( Swap Policy)
FINANCIAL PLAN PURPOSE AND
ORGANIZATION
A. Financial Plan Objectives. Through its
budget or financial plan, the City will link
resources with results by:
1. Identifying community needs for essential
services.
2. Organizing the programs required to provide
these essential services.
3. Establishing program policies and goals that
define the nature and level of program
services required.
4. Identifying activities performed in delivering
program services.
5. Proposing objectives for improving the
delivery of program services.
6. Identifying and appropriating the resources
required to perform program activities and
accomplish program objectives.
B. Three- Year Extended Financial Outlook.
Following the City’s favorable experience over
the utilization of multiple- year budget, the City
will continue using a three- year extended
financial outlook, emphasizing long- range
planning and effective program management.
Appropriations continue to be made annually
under this process; but the preliminary budget
for the next two years out, serve as the
foundation for preparing the subsequent
budgets. The following benefits were identified
with the multiple- year budget:
1. Reinforcing the importance of long- range
planning in managing the City’s fiscal affairs.
2. Concentrating on developing and budgeting
for the accomplishment of significant
objectives.
3. Establishing realistic timeframes for
achieving objectives.
4. Creating a pro- active budget that provides
for stable operations and assures the City’s
long- term fiscal health.
5. Promoting more orderly spending patterns.
6. Reducing the amount of time and resources
allocated to preparing annual budgets.
C. Measurable Objectives. The financial plan will
establish measurable program objectives and
allow reasonable time to accomplish those
objectives.
D. Operating Carryover. Operating program
appropriations not spent during the prior year for
major projects, may be carried over for specific
purposes into the following fiscal year with the
approval of the City Manager.
E. Goal Status Reports. The status of major
program objectives will be formally reported to
the Council on an ongoing, periodic basis.
F. Mid- Year Budget Reviews. The Council will
formally review the City’s fiscal condition, and
amend appropriations, if necessary, at mid- year.
G. Balanced Budget. The City will maintain a
balanced budget in the General Fund which
means the following:
1. Operating revenues must fully cover
operating expenditures, including debt
service.
2. It is allowable for total expenditures to
exceed revenues in a given year to fund
capital improvement plan projects, or other
“ one- time” non- recurring expenditures ,
subject to the Fund Balance minimum level
of reserves as fully discussed in FUND
BALANCE DESIGNATIONS AND
RESERVES section of this document.
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
14
Budgeting for all other governmental funds will
be project specific and will be subject to the
available individual fund balances.
Budgeting for the water and sewer funds will be
subject to the policies set forth under the
“ Enterprise Fund Fees and Rates” paragraph of
this policy document.
FINANCIAL REPORTING AND BUDGET
ADMINISTRATION
A. Annual Reporting. The City will prepare
annual financial statements as follows:
1. The City will contract for an annual audit by
a qualified independent certified public
accountant. The City will strive for an
unqualified auditors’ opinion.
2. The City will use generally accepted
accounting principles in preparing its annual
financial statements, and will strive to meet
the requirements of the Governmental
Finance Officers Association ( GFOA)’ s
Award for Excellence in Financial Reporting
program.
3. The City will issue audited financial
statements within 180 days after year- end.
B. Interim Reporting. The City will prepare and
issue timely interim reports on the City’s fiscal
status to the Council, the Financial Advisory
Committee and staff. This includes: monthly
reports to program managers; quarterly reports
to the Council, the Financial Advisory Committee
and Department Heads; mid- year budget
reviews; and interim annual reports.
C. Budget Administration. The Council may
amend or supplement the budget at any time
after its adoption by majority vote of the
members. The City Manager may make
administrative adjustments to the budget as long
as those changes will not have a significant
policy impact nor affect budgeted- year end fund
balances.
GENERAL REVENUE MANAGEMENT
A. Diversified and Stable Base. The City will
seek to maintain a diversified to the extent
possible given the nature of the community, and
stable revenue base.
B. Long- Range Focus. To emphasize and
facilitate long- range financial planning, the City
will maintain current projections of revenues for
the succeeding five years.
C. Current Revenues for Current Uses. The City
will make all current expenditures with current
revenues, avoiding procedures that balance
current budgets by postponing needed
expenditures, accruing future revenues, or
rolling over- short term debt.
D. Interfund Transfers and Loans. Transfers
between funds for operating purposes can only
be made in accordance with an adopted budget.
From time- to- time, interfund borrowings which is
specifically distinguished from interfund transfers
and are intended to be repaid in the near- term,
may be appropriate; however, these are subject
to the following criteria to ensure that the
fiduciary purpose of the fund is met:
1. The Finance Director is authorized to
approve temporary interfund borrowings for
cash flow purposes whenever the cash
shortfall is expected to be resolved within 45
days.
2. Any other interfund borrowings for cash flow
or other purposes require case- by- case
approval by the Council.
USER FEE COST RECOVERY GOALS
A. Ongoing Review. Fees will be reviewed and
updated on an ongoing basis to ensure that they
keep pace with changes in the cost- of- living as
well as changes in methods or levels of service
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
15
B. User Fee Cost Recovery Levels. In setting
user fees and cost recovery levels, the following
factors will be considered:
1. Community- Wide Versus Special Benefit.
The level of user fee cost recovery should
consider the community- wide versus special
service nature of the program or activity.
The use of general- purpose revenues is
appropriate for community- wide services,
while user fees are appropriate for services
that are of special benefit to easily identified
individuals or groups.
2. Service Recipient Versus Service Driver.
After considering community- wide versus
special benefit of the service, the concept of
service recipient versus service driver
should also be considered. Example: While
an applicant may not be the ultimate
beneficiary of the City’s development review
efforts, the applicant is the driver of
development review costs, and as such,
cost recovery from the applicant is
appropriate.
3. Feasibility of Collection and Recovery.
The feasibility of assessing and collecting
charges should also be considered in
developing user fees as there might be
instances where it is impractical or too costly
to establish a system to identify and charge
the user.
C. General Concepts Regarding The Use Of
Service Charges.
The following general concepts will be used in
developing and implementing service charges:
1. Revenues should not exceed the reasonable
cost of providing the service.
2. Cost recovery goals should be based on the
total cost of delivering the service, including
direct costs, departmental administration
costs, and organization- wide support costs
such as accounting, personnel, data
processing, vehicle maintenance and
insurance.
3. The method of assessing and collecting fees
should be as simple as possible in order to
reduce the administrative cost of collection.
4. Rate structures should be sensitive to the
“ market” for similar services as well as to
smaller, infrequent users of the service.
5. A unified approach should be used in
determining cost recovery levels for various
programs based on the factors discussed
above.
D. Development Review Programs
The following cost recovery policies apply to
the development review programs:
1. Services provided under this category
include:
a. Planning ( rezonings, general plan
amendments, variances, design
review).
b. Building and safety ( building
permits, structural plan checks,
inspections).
c. Engineering ( tentative tract and
parcel maps, public improvement
plan checks, inspections,
subdivision requirements,
encroachments).
d. Fire plan check.
2. Cost recovery for these services should be
100% except in instances where a process
is clearly intended to serve the broader
community as well as the applicant.
ENTERPRISE FUND FEES AND RATES
A. Water and Sewer. The City will set fees and
rates at levels which fully cover the total direct
and indirect costs – including operations, capital
outlay and debt service – of the water and sewer
operations.
B. Ongoing Rate Review. The City will review
and adjust enterprise fees and rate structures as
required to ensure that they remain appropriate
and equitable.
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
16
C. Franchise and In- Lieu Fees. City will treat the
water and sewer funds in the same manner as if
they were privately owned and operated. In
addition to setting rates at levels necessary to
fully cover the cost of providing water and sewer
service, City will assess reasonable franchise
fees. Franchise fees are based on the statewide
standard for public utilities like electricity and
gas: 2% of gross revenues from operations.
INVESTMENTS
A. Responsibility. Investments and cash
management is the responsibility of the City
Treasurer or designee.
B. Investment Objective. The City’s primary
investment objective is to achieve a reasonable
rate or return while minimizing the potential for
capital losses arising from market changes or
issuer default.
Accordingly, the following factors will be
considered in priority order in determining
individual investment placements:
1. Safety
2. Liquidity
3. Yield
C. Selecting Maturing Dates. The City will strive
to keep all idle cash balances fully invested
through daily projections of cash flow
requirements. To avoid forced liquidations and
losses of investment earnings, cash flow and
future requirements will be the primary
consideration when selecting maturities.
D. Diversification. As the market and the City’s
investment portfolio change, care will be taken
to maintain a healthy balance of investment
types and maturities.
E. Authorized Investments. The City will invest
only in those instruments as authorized in the
City’s adopted investment policy. The City will
not invest in stock, will not speculate and will not
deal in futures or options.
F. Authorized Institutions. Current financial
statements will be maintained for each institution
in which cash is invested and the amount of
investments in each institution will be as
authorized in the City’s adopted policy.
G. Consolidated Portfolio. In order to maximize
yields from its overall portfolio, the City will
consolidate cash balances from all funds for
investment purposes, and will allocate
investment earnings to each fund in accordance
with generally accepted accounting principles.
H. Safekeeping. Ownership of the City’s
investment securities will be protected through
third- party custodial safekeeping.
I. Investment Management Plan. The City
Treasurer will develop and maintain an
Investment Management Plan that addresses
the City’s administration of its portfolio, including
investment strategies, practices and procedures.
J. Reporting. The City Treasurer will develop and
maintain an investment reporting system
pursuant to Government Code Section 53607.
APPROPRIATIONS LIMITATION
A. The Council will annually adopt a resolution
establishing the City’s appropriations limit
calculated in accordance with Article XIII- B of
the Constitution of the State of California,
Section 7900 of the State of California
Government Code, and any other related voter
approved amendments or state legislation.
B. The supporting documentation used in
calculating the City’s appropriations limit and
projected appropriations subject to the limit will
be available for public and Council review at
least 10 days before Council consideration of a
resolution to adopt an appropriations limit. The
Council will generally consider this resolution
connection with final approval of the budget.
C. The City will seek voter approval to amend its
appropriation limit at such time that tax proceeds
are in excess of allowable limits.
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
17
FUND BALANCE DESIGNATIONS AND
RESERVES
A. Minimum Fund and Working Capital
Balances. The City will strive to maintain fund
or working capital balances of at least 30% of
operating expenditures in the General Fund
( Refer to Attachment “ A” to this policy document
for discussion of the General Fund Reserve
Policy.) and a combined 20% in the water and
sewer enterprise funds. This is considered the
minimum level necessary to maintain the City’s
credit worthiness and to adequately provide for:
1. Economic uncertainties, local disasters, and
other financial hardships or downturns in the
local or national economy.
2. Contingencies for unseen operating or
capital needs.
3. Cash flow requirements.
B. Equipment Replacement. The City will
establish and maintain and equipment
replacement Fund to provide for the timely
replacement of vehicles and capital equipment
with an individual replacement cost of $ 10,000
or more. The City will maintain a minimum fund
balance in the Equipment Replacement Fund of
at least 20% of the original purchase cost of the
items accounted for in this fund.
The annual contribution to this fund will
generally be based on the annual use allowance
which is determined based on the estimated life
of the vehicle or equipment and its original
purchase cost. Interest earnings and sales of
surplus equipment as well as any related
damage and insurance recoveries will be
credited to the Equipment Replacement Fund.
C. Future Capital Project Designations. The
Council may designate specific fund balance
levels for future development of capital projects
that it has determined to be in the best long- term
interests of the City.
D. Other Designations and Reserves. In addition
to the designations noted above, fund balance
levels will be sufficient to meet funding
requirements for projects approved in prior years
which are carried forward into the new year;
debt service requirements; reserves for
encumbrances; and other reserves or
designations required by contractual obligations,
state law, or generally accepted accounting
principles.
E. Use of One- Time Revenues and Fund
Balance in Excess of Minimum Levels of
Reserves.
The City will strive to strategically use one- time
revenues such as sale of surplus property, and
fund balance in excess of the minimum levels
of reserves, for one- time expenditures and
non- recurring costs only and not to be used to
fund ongoing service improvements.
CAPITAL IMPROVEMENT MANAGEMENT
A. CIP Projects - $ 10,000 or More. Construction
projects which cost $ 10,000 or more will be
included in the Capital Improvement Plan ( CIP)
as well as minor capital outlays for equipments
and furnishings.
B. CIP Purpose. The purpose of the CIP is to
systematically plan, schedule, and finance
capital projects to ensure cost- effectiveness as
well as conformance with established policies.
The CIP is a five- year plan organized into the
same functional groupings used for the
operating programs. The CIP will reflect a
balance between capital replacement projects
that repair, replace or enhance existing facilities,
equipment or infrastructure; and capital facility
projects that significantly expand or add to the
City’s existing fixed assets.
C. CIP Appropriation. The City’s annual CIP
appropriation for study, design, acquisition
and/ or construction is based on the projects
designated by the Council through adoption of
the Financial Plan. Adoption of the Financial
Plan CIP appropriation does not automatically
authorize funding for specific project phases.
This authorization generally occurs only after the
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
18
preceding project phase has been completed
and approved by the Council and costs for the
succeeding phases have been fully developed.
Accordingly, project appropriations are generally
made when contracts are awarded. If project
costs at the time of bid award are less than the
budgeted amount, the balance will be returned
to fund balance or allocated to another project.
If project costs are greater than the budgeted
amounts, appropriation of additional resources
must be identified and approved by the Council.
D. CIP Budget Carryover. Appropriations for CIP
projects lapse three years after budget adoption.
Projects which lapse from lack of project
account appropriations may be resubmitted for
inclusion in a subsequent CIP. Project accounts
which have been appropriated will not lapse until
completion of the project phase.
CAPITAL FINANCING
AND DEBT MANAGEMENT
A. Capital Financing
1. The City will consider the use of debt
financing only for one- time capital
improvement projects and only under the
following circumstances:
a. When the project’s useful life will exceed
the term of the financing.
b. When project revenues or specific
resources will be sufficient to service the
long- term debt.
2. Debt financing will not be considered
appropriate for any recurring purpose such
as current operating and maintenance
expenditures.
3. The City will use the following criteria to
evaluate pay- as- you- go versus long- term
financing in funding capital improvements:
Factors favoring pay- as- you- go financing
a. Current revenues and adequate fund
balances are available or project
phasing can be accomplished.
b. Existing debt levels adversely affect the
City’s credit rating.
c. Market conditions are unstable or
present difficulties in marketing.
Factors favoring long- term financing
d. Revenues available for debt service are
deemed sufficient and reliable so that
long- term financings can be marketed
with investment grade credit ratings.
e. The project securing the financing is of
the type which will support an
investment grade credit rating.
f. A project is mandated by state or federal
requirements, and resources are
insufficient or unavailable.
g. The project is immediately required to
meet or relieve capacity needs and
current resources are insufficient or
unavailable.
h. The life of the project or asset to be
financed is 5 years or longer.
B. Debt Management
1. The City will not obligate the General Fund
to secure long- term financings except when
marketability can be significantly enhanced.
2. A feasibility analysis will be prepared for
each long- term financing which analyzes the
impact on current and future budgets for
debt service and operations. This analysis
will also address the reliability of revenues to
support debt service.
3. The City will generally conduct financings on
a competitive basis. However, negotiated
financings may be used due to market
volatility or the use of an unusual or complex
financing or security structure.
4. The City will seek an investment grade
rating ( Baa/ BBB or greater) on any direct
debt and will seek credit enhancements
such as letters of credit or insurance when
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
19
necessary for marketing purposes,
availability and cost- effectiveness.
5. The City will monitor all forms of debt
annually coincident with the City’s financial
plan preparation and review process and
report concerns and remedies, if needed, to
the Council.
6. The City will diligently monitor its compliance
with bond covenants and ensure its
adherence to federal arbitrage regulations.
7. The City will maintain good, ongoing
communications with bond rating agencies
about its financial condition. The City will
follow a policy of full disclosure on every
financial report and bond prospectus.
8. When interest rate products are utilized,
they will be issued in accordance to Section
5922( a) of the Government Code and the
Town’s Interest Rate Risk Mitigation Policy
( Swap Policy) adopted on January 2006.
C. Debt Capacity
1. General Purpose Debt Capacity. The City
will carefully monitor its level of general-purpose
debt. Because our general purpose
debt capacity is limited, it is important that
we only use general purpose debt financing
for high- priority projects where we cannot
reasonably use other financing methods.
In evaluating debt capacity, general- purpose
annual debt service payments should
generally not exceed 10% of the General
Fund revenues; and in no case should they
exceed 15%.
2. Enterprise Fund Debt Capacity. The City
will set enterprise fund rates at levels
needed to fully cover debt service
requirements as required by the debt
covenants, as well as operations,
maintenance, administration and capital
improvement costs. The ability to afford
new debt for enterprise operations will be
evaluated as an integral part of the city’s
rate review and setting process.
HUMAN RESOURCE MANAGEMENT
A. Regular Staffing
1. The budget will fully appropriate the
resources needed for authorized regular
staffing and will limit programs to the regular
staffing authorized.
2. Regular employees will be the core work
force and the preferred means of staffing
ongoing, year- round program activities. The
City will strive to provide competitive
compensation and benefit schedules for its
authorized regular work force.
3. To manage the growth of the regular work
force and overall staffing costs, the City will
follow these procedures:
a. The Council will authorize all regular
positions preferably in conjunction with
the budget process.
b. The City Manager’s office will coordinate
and approve the hiring of all regular and
temporary employees.
c. All requests for additional regular
positions will include evaluations of:
• The necessity, term and expected
results of the proposed activity.
• Staffing and materials costs
including salary, benefits,
equipment, uniforms, clerical
support and facilities.
• Additional revenues or cost savings,
which may be realized.
B. Temporary Staffing
1. The hiring of temporary employees will not
be used as an incremental method for
expanding the City’s regular work force.
2. Temporary employees include all
employees other than regular employees,
elected officials and volunteers. Temporary
employees will generally augment regular
City staffing as extra- help employees,
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
20
seasonal employees, contract employees,
interns and work- study assistants.
3. The City Manager and department heads
will encourage the use of temporary rather
than regular employees to meet peak
workload requirements, fill interim
vacancies, and accomplish tasks where
less than full- time, year- round staffing is
required.
Under this guideline, temporary employee
hours will generally not exceed 1,000 hours
annually. Limited circumstances where the
use of temporary employees on an ongoing
basis in excess of this target due to unique
programming or staffing requirements, must
be approved by the City Manager.
4. Contract employees are defined as
temporary employees with written contracts
approved by the City Manager. Contract
employees will generally be used for
medium- term ( generally between six
months and two years) projects, programs
or activities requiring specialized or
augmented levels of staffing for a specific
period.
The services of contract employees will be
discontinued upon completion of the
assigned project, program or activity.
C. Independent Contractors
Independent contractors are not City employees
and may be used in the following situations:
1. Short- term, peak workload assignments to
be accomplished using personnel contracted
through an outside temporary employment
agency. In this situation, City staff will
closely monitor the work of these employees
and minimal training will be required.
However, they will always be considered the
employees of the employment agency and
not the City. All placements will be
coordinated with the City Manager’s Office
and subject to the approval of the City
Manager or designee.
2. Construction of public works projects and
delivery of operating, maintenance or
specialized professional services not
routinely performed by City employees.
Such services will be provided without close
supervision by City staff, and the required
methods, skills and equipment will generally
be determined and provided by the
contractor. Contract awards will be guided
by the City’s purchasing policies and
procedures.
PRODUCTIVITY
The City will constantly monitor and review its
methods of operation to ensure that services
continue to be delivered in the most cost- effective
manner possible. This review process
encompasses a wide range of productivity issues,
including:
A. Analyzing systems and procedures to identify
and remove unnecessary review requirements.
B. Evaluating the ability of new technologies and
related capital investments to improve
productivity.
C. Developing the skills and abilities of all City
employees.
D. Developing and implementing appropriate
methods of recognizing and rewarding
exceptional employee performance.
E. Evaluating the ability of the private sector to
perform the same level of service at a lower
cost.
F. Periodic formal reviews of operations on a
systematic, ongoing basis.
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
21
CONTRACTING FOR SERVICES
General Policy Guidelines
1. Contracting with the private sector for the
delivery of services provides the City with a
significant opportunity for cost containment
and productivity enhancements. As such,
the City is committed to using private sector
resources in delivering municipal services
as a key element in our continuing efforts to
provide cost- effective programs.
2. Private sector contracting approaches
under this policy include construction
projects, professional services, outside
employment agencies and ongoing
operating and maintenance services.
3. In evaluating the costs of private sector
contracts compared with in- house
performance of the service, indirect, direct
and contract, administration costs of the city
will be identified and considered.
4. For programs and activities currently
provided by City employees, conversions to
contract services will generally be made
through attrition, reassignment or
absorption by the contractor.
22
MAJOR CITY GOALS
Based on Council’s guidance, city goals and priorities were developed and served as the basis for the
development of the budget proposals and the core of the city strategic plan. The city goals form the backdrop and
serve as the policy guidance to staff in the development of the budget proposal. Departmental goals or key plans
can be individually linked to one or more of the following city goals.
City staff used this policy framework and developed shorter- term steps required towards the Council’s goals and
priorities. Departments develop departmental plans related to the city’s plan and their own initiatives for
continuous improvement in their services and services delivery. Individual departmental objectives are linked to
one or more of the following city goals.
Land Use
To provide for the
preservation and
enhancement of the
Town’s unique residential
character ( Goal 1).
Community Safety
To provide a safe and
healthy community for the
residents ( Goal 2).
Infrastructure
To protect the capital
investments in the Town’s
facilities and infrastructure
through maintenance,
enhancement and when
necessary expansion
( Goal 3).
Long- Term Fiscal Health
To develop and
implement a long- term
plan to deliver desired
service levels, adequately
maintain infrastructure
and facilities, and
preserve the Town’s fiscal
health ( Goal 4).
Programs and
Services
To provide numerous
and varied programs
and services to
preserve and
enhance the quality of
living in the Town
( Goal 5).
Inter- Jurisdictional
Operations
To work co-operatively
with other
agencies to provide
cost- effective and
other positive services
to the Town ( Goal 6).
Community
Representation
To actively participate
in municipal and
multi- jurisdictional
associations and
community
organizations
( Goal 7).
Employee
Excellence
To provide an efficient
work environment and
promote employee
excellence ( Goal 8).
LINKING CITY GOALS TO BUDGET
23
CITY GOALS
RELATED BUDGET ITEMS
LAND USE PLANNING – Housing Element Update ( 08/ 09) ($ 80,000)
COMMUNITY DEVELOPMENT – Reclassification of
City Planner Position ( vacated from retirement) to Director of
Planning and Building to better serve the needs of the
community.
BUILDING – A new Permit Technician position to
increase level of customer service of the permitting
function and free- up time for building inspections
( additional cost $ 25,000).
COMMUNITY SAFETY POLICE – Fully funding authorized Lieutenant position
in the Department left unfilled in the prior years due to
fiscal constraints to ensure a more effective operations.
FIRE – Replace Rescue # 33 to increase effectiveness
of the Special Operations response ($ 351,800).
FIRE – Replace Self- Contained Breathing Apparatus
($ 185,000).
POLICE – Update dispatch programs and equipments
($ 40,676).
POLICE/ FIRE – Continue implementation of
RoamSecure Community Alert Notification System
INFRASTRUCTURE STREETS – Expand streets projects to improve City’s
Pavement Management Index with a combination of
additional 2 Maintenance Workers, New Equipments
( Asphalt Zipper $ 80,000; Hydraulic Breaker Hammer $ 17,900); and
additional contractual services.
WATER AND SEWER – Continue major capital
improvements to the infrastructure funded from bond
proceeds for the next 2 years ($ 7.3 million).
CITY- WIDE – Upgrade or replace aging telephone
system ($ 50,000).
POLICE – Various renovations/ improvements to the
Police Building ($ 85,500).
WATER AND SEWER – Purchase several equipments
to increase effectiveness ( Mini excavator & trailer $ 60,900;
Quality Control Van $ 60,000; Gator Utility Vehicle $ 13,500).
LONG- TERM FISCAL HEALTH CITY MANAGER/ FINANCE – Balanced budget for FY
07/ 08 and preliminary balanced budgets for the next 2
years.
FINANCE- Actuarial study to implement GASB 45 –
Reporting and accounting for Other Post Employment
Benefits ( OPEB) ($ 10,000).
WATER AND SEWER – Implementation of
recommendations from the rates study to align water
and sewer rates for equity and ensure long- term fiscal
health of the water and sewer operations
LINKING CITY GOALS TO BUDGET
24
CITY GOALS
RELATED BUDGET ITEMS
PROGRAMS AND SERVICES WATER AND SEWER – Additional 5 maintenance
workers in the next 4 years to comply with state
mandates and implement programs previously not
done in the prior years due to short staffing.
FIRE/ GENERAL GOVERNMENT – Expansion of the
Disaster Preparedness Program allowing for more
personnel training and ensure on- going preparedness
for disaster response ( additional funding of $ 48,600); set up a
local emergency response center in the Council
Chambers.
GENERAL GOVERNMENT – One- time contribution to
San Mateo Library for program expansion ($ 25,000).
WATER - Purchase Advanced Meter Reading ( AMR)
for more efficient meter reading function ($ 500,000).
INTER- JURISDICTIONAL OPERATIONS FIRE – Merging of Disaster Preparedness Program
operations between Hillsborough and Burlingame
COUNCIL/ ADMINISTRATION/ FIRE – Continue to
review and implement efficiency measures on the
merged fire operations between Hillsborough and
Burlingame.
FINANCE – Continue implementation of technology
plan through contract with South San Francisco
( update of operating systems and replace equipments),
COMMUNITY REPRESENTATION COUNCIL/ CITY WIDE – Continue
membership/ representation with various organizations
EMPLOYEE EXCELLENCE FIRE – Enhanced retirement plan of the Fire Group
( approximately $ 170,000 increase in annual costs).
CITY- WIDE – Implement labor contracts contractual
obligations
PUBLIC WORKS LABOR GROUP – Implement new
terms from 5- year labor contract.
CITY MANAGER/ FINANCE – Phase 1 of the Records
Management System – Agenda Management System
($ 60,000).
WATER – Training for/ and recertification of various
employees per State Mandate
BUILDING – Purchase scanners for efficiency of
operations in the permitting function ( 19,600).
Section C
BUDGET SUMMARIES
BUDGET SUMMARIES
FUND STRUCTURE AND BASIS OF BUDGETING
25
In accordance with generally accepted principles, the City’s financial reporting system is organized on a fund
basis consisting of two major types – governmental and proprietary – and two self- balancing account groups:
general fixed assets and general long- term. The City's various funds are structured to segregate and identify
those financial transactions and resources associated with providing specific activities or programs in
conformance with special regulations, restrictions, or limitations.
The basis of accounting used for purposes of financial reporting is in accordance with generally accepted
accounting principles ( GAAP). The bases for each of the funds are not necessarily the same as the basis used in
preparing the budget document. The Town of Hillsborough used the modified accrual basis for budgeting. This
basis is the method under which revenues and other financial resources are recognized when they become both
“ measurable” and available to finance expenditures of the current period”. However, reconciling items are
presented to convert the respective funds to the accounting basis used for financial reporting.
Budgets are prepared for each fund except the capital projects fund which adopt project- length projects and is
effectively controlled at the project level.
Following is a discussion and a graphic presentation of the city’s fund structure for budgeting:
Budgets for major funds are individually presented while budget is aggregated for non- major funds. Funds whose
revenues or expenditures, excluding other financing sources and uses, constitute more than 10 percent of the
revenues or expenditures of the appropriated budget are considered a major fund for budgeting purposes.
Town of Hillsborough
Budgetary Funds
Governmental
Funds
Proprietary
Funds
General Fund
( Major Fund)
Special Revenue
Funds
Capital
Projects Fund Enterprise
Funds
Internal Service
Fund
Water Fund
( Major Fund)
Sewer Fund
( Major Fund)
Public Safety
Special Tax Fund
Measure “ A” Fund
Gas Tax Fund
Police Grants Fund
BUDGET SUMMARIES
FUND STRUCTURE AND BASIS OF BUDGETING
26
Major Fund Descriptions
General Fund accounts for all general government
activity not accounted for in other funds. It includes
most tax revenues and such services as public safety,
parks, recreation, engineering, planning and
administration.
Water Fund accounts for activities associated with the
distribution and transmission of potable water to the
Town of Hillsborough citizens.
Sewer Fund accounts for activities associated with
sewage transmission and treatment.
Nonmajor Special Revenue Funds
These funds are used to account for the proceeds of
specific revenue resources that are legally restricted.
The funds include: Public Safety Special Tax, Gas
Tax, Measure “ A” and Police Grants Funds.
Public Safety Special Tax – This fund accounts for
revenues from a Town of Hillsborough voter- approved
special tax which proceeds are designated for public
safety operations and capital expenditures.
Gas Tax – This fund accounts for receipts and
disbursements of funds apportioned under California
Streets and Highways Code Sections 2105, 2106, 2107
and 2107.5 for major street construction projects.
Measure “ A” – This fund accounts for a San Mateo
County half- cent sales tax approved by the voters in
June 1988 ( Measure A) for the purpose of improving
local transportation including streets and roads.
Police Grants – This accounts for activities funded from
various police grants and programs.
Nonmajor Internal Service Fund
The city’s internal service fund account for the
acquisition and replacement of vehicles and
equipments and funding for the Town’s other post
employment benefits ( OPEB). These activities are
entirely self- supported by user charges.
Capital Projects Fund
Town adopts project- length budgets for capital projects.
BUDGET SUMMARIES
OPERATIONS AND ACCOUNTING STRUCTURE TABLE
27
USE OF FUNDS BY DEPARTMENTS
Department
General
Fund
( Major)
Water
Fund
( Major)
Sewer
Fund
( Major)
Capital
Projects
Fund
Asset
Replacement
Fund
Public
Safety
Tax
Fund
Gas
Tax
Fund
Measure
“ A”
Fund
Police
Grants
Fund
City Council 􀀳 􀀳 􀀳
City Manager 􀀳 􀀳 􀀳
City Attorney 􀀳
Finance 􀀳 􀀳 􀀳
General Government 􀀳 􀀳 􀀳
Police 􀀳 􀀳 􀀳 􀀳 􀀳
Fire 􀀳 􀀳 􀀳 􀀳
Planning 􀀳 􀀳 􀀳
Building 􀀳 􀀳 􀀳
Public Works Administration 􀀳 􀀳 􀀳 􀀳 􀀳 􀀳 􀀳
Streets 􀀳 􀀳 􀀳 􀀳 􀀳
Water 􀀳 􀀳 􀀳
Sewer 􀀳 􀀳 􀀳
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
28
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS - ACTUAL
FISCAL YEAR 2004- 2005
Major Enterprise Funds
General
Fund
Non- Major
Govern-mental
Funds
Non- Major
Internal
Service
Fund
Water
Fund
Sewer
Fund
Total
REVENUES:
Taxes $ 9,091,589 $ 2,188,202 $ 11,279,791
Permits 1,002,681 1,002,681
Intergovernmental 825,357 669,534 $ 480,325 1,975,216
Use of assets 1,016,188 74,342 $ 66,355 $ 280,113 111,521 1,548,519
Service charges 1,120,255 140,490 771,490 5,942,747 5,736,264 13,711,246
All others 270,550 49,147 319,697
Total Revenues 13,326,620 3,072,568 886,992 6,222,860 6,328,110 29,837,150
EXPENDITURES:
Operations 14,612,266 131,674 ( 479) 4,855,297 2,876,570 22,475,328
Capital 822,271 114,505 2,849,733 1,854,835 5,641,344
Debt Service 14,349 202,702 568,021 1,132,106 1,917,178
Total Expenditures 14,626,615 953,945 316,728 8,273,051 5,863,511 30,033,850
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,678,692 400,000 3,078,692
Operating Transfers Out ( 3,078,692) ( 3,078,692)
Proceeds from borrowing 2,677,225 1,828,389 4,505,614
Total Financing Sources ( Uses) 2,678,692 ( 2,678,692) 2,677,225 1,828,389 4,505,614
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
1,378,697
( 560,069)
570,264
627,034
2,292,988
4,308,914
ADJUSTMENTS TO GAAP:
Depreciation and amortization ( 282,270) ( 1,160,341) ( 992,907) ( 2,435,518)
Principal payment 179,986 175,888 324,412 680,286
Capital expenditures 114,505 2,849,733 1,854,835 4,819,073
Proceeds from borrowing ( 2,677,225) ( 1,828,389) ( 4,505,614)
Total adjustments to GAAP 12,221 ( 811,945) ( 642,049) ( 1,441,773)
CHANGE IN FUND BALANCE
1,378,697
( 560,069)
582,485
( 184,911)
1,650,939
2,867,141
BEGINNING FUND BALANCE
7,735,434
1,616,369
3,363,683
19,549,013
10,294,490
42,558,989
ENDING FUND BALANCE
$ 9,114,131
$ 1,056,300
$ 3,946,168
$ 19,364,102
$ 11,945,429
$ 45,426,130
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
29
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS - ACTUAL
FISCAL YEAR 2005- 2006
Major Enterprise Funds
General
Fund
Non- Major
Govern-mental
Funds
Non- Major
Internal
Service
Fund
Water
Fund
Sewer
Fund
Total
REVENUES:
Taxes $ 9,688,685 $ 2,233,132 $ 11,921,817
Permits 973,812 973,812
Intergovernmental 1,150,206 980,380 $ 88,206 2,218,792
Use of assets 1,127,020 87,812 $ 102,472 $ 449,114 349,156 2,115,574
Service charges 1,149,151 145,428 558,505 6,471,820 5,224,185 13,549,089
All others 166,544 182,306 37,732 386,582
Total Revenues 14,255,418 3,629,058 698,709 6,920,934 5,661,547 31,165,666
EXPENDITURES:
Operations 16,079,618 83,999 34,274 5,226,297 3,333,663 24,757,851
Capital 1,426,647 236,282 2,971,223 3,331,043 7,965,195
Debt Service 14,349 202,702 675,951 1,171,709 2,064,711
Total Expenditures 16,093,967 1,510,646 473,258 8,873,471 7,836,415 34,787,757
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,628,560 666,995 3,295,555
Operating Transfers Out ( 101,255) ( 3,043,300) ( 151,000) ( 3,295,555)
Proceeds from borrowing 2,910,607 3,238,621 6,149,228
Total Financing Sources ( Uses) 2,527,305 ( 2,376,305) 2,759,607 3,238,621 6,149,228
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
688,756
( 257,893)
225,451
807,070
1,063,753
2,527,137
ADJUSTMENTS TO GAAP:
Depreciation and amortization ( 272,847) ( 1,312,035) ( 1,184,348) ( 2,769,230)
Principal payment 188,066 178,702 321,298 688,066
Capital expenditures 236,282 3,029,978 3,359,965 6,626,225
Proceeds from borrowing ( 2,910,607) ( 3,238,621) ( 6,149,228)
Total adjustments to GAAP 151,501 ( 1,013,962) ( 741,706) ( 1,604,167)
CHANGE IN FUND BALANCE
688,756
( 257,893)
376,952
( 206,892)
322,047
922,970
BEGINNING FUND BALANCE
9,114,131
1,056,300
3,946,168
19,364,102
11,945,429
45,426,130
ENDING FUND BALANCE
$ 9,802,887
$ 798,407
$ 4,323,120
$ 19,157,210
$ 12,267,476
$ 46,349,100
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
30
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS- REVISED BUDGET
FISCAL YEAR 2006- 2007
Major Enterprise Funds
General
Fund
Non- Major
Govern-mental
Funds
Non- Major
Internal
Service
Fund
Water
Fund
Sewer
Fund
Total
REVENUES:
Taxes $ 10,937,710 $ 2,228,560 $ 13,166,270
Permits 909,650 909,650
Intergovernmental 979,630 834,771 1,814,401
Use of assets 1,171,242 84,100 $ 73,500 $ 250,000 $ 150,000 1,728,842
Service charges 1,081,625 394,000 607,600 7,246,000 5,783,500 15,112,725
All others 103,930 417,694 10,000 531,624
Total Revenues 15,183,787 3,959,125 691,100 7,496,000 5,933,500 33,263,512
EXPENDITURES:
Operations 17,318,906 170,997 25,000 6,094,705 3,665,187 27,274,795
Capital 1,318,532 408,910 4,604,590 3,175,000 9,507,032
Debt Service 7,174 202,702 842,774 1,309,064 2,361,714
Total Expenditures 17,326,080 1,489,529 636,612 9,091,059 8,149,251 39,143,541
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,547,560 876,267 3,423,827
Operating Transfers Out ( 405,267) ( 2,962,560) ( 32,000) ( 24,000) ( 3,423,827)
Proceeds from borrowing 4,551,010 3,160,000 7,711,010
Total Financing Sources ( Uses) 2,142,293 ( 2,086,293) 4,519,010 3,136,000 7,711,010
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
383,303
54,488
472,941
920,249
1,830,981
ADJUSTMENTS TO GAAP:
Depreciation and amortization ( 350,000) ( 1,170,000) ( 1,000,000) ( 2,520,000)
Principal payment 196,147 178,702 321,298 696,147
Capital expenditures 408,910 4,781,391 3,372,659 8,562,960
Proceeds from borrowing ( 4,551,010) ( 3,160,000) ( 7,711,010)
Total adjustments to GAAP 255,057 ( 760,917) ( 466,043) ( 971,903)
CHANGE IN FUND BALANCE
383,303
309,545
( 287,976)
454,206
859.078
BEGINNING FUND BALANCE
9,802,887
798,407
4,323,120
19,157,210
12,267,476
46,349,100
ENDING FUND BALANCE
$ 9,802,887
$ 1,181,710
$ 4,632,665
$ 18,869,234
$ 12,721,682
$ 47,208,178
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
31
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS- ADOPTED BUDGET
FISCAL YEAR 2007- 2008
Major Enterprise Funds
General
Fund
Non- Major
Govern-mental
Funds
Non- Major
Internal
Service
Fund
Water
Fund
Sewer
Fund
Total
REVENUES:
Taxes $ 11,342,600 $ 2,228,560 $ 13,571,160
Permits 925,200 925,200
Intergovernmental 957,500 710,000 1,667,500
Use of assets 1,176,975 99,810 $ 73,500 $ 318,000 $ 197,000 1,865,285
Service charges 1,095,700 419,000 221,997 7,590,000 5,980,000 15,306,697
All others 128,103 10,000 138,103
Total Revenues 15,626,078 3,457,370 305,497 7,908,000 6,177,000 33,473,945
EXPENDITURES:
Operations 18,086,138 115,700 25,000 6,523,557 3,554,251 28,304,646
Capital 37,500 884,976 200,200 3,520,900 1,378,500 6,022,076
Debt Service 860,739 1,394,009 2,254,748
Total Expenditures 18,123,638 1,000,676 225,200 10,905,196 6,326,760 36,581,470
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,547,560 465,000 3,012,560
Operating Transfers Out ( 50,000) ( 2,962,560) ( 3,012,560)
Proceeds from borrowing 3,400,000 1,365,000 4,765,000
Total Financing Sources ( Uses) 2,497,560 ( 2,497,560) 3,400,000 1,365,000 4,765,000
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
( 40,866)
80,297
402,804
1,215,240
1,657,475
ADJUSTMENTS TO GAAP:
Depreciation and amortization ( 350,000) ( 1,286,000) ( 1,098,000) ( 2,734,000)
Principal payment 210,150 389,850 600,000
Capital expenditures 200,200 3,594,036 1,651,901 5,446,137
Proceeds from borrowing ( 3,400,000) ( 1,365,000) ( 4,765,000)
Total adjustments to GAAP ( 149,800) ( 881,814) ( 421,249) ( 1,452,863)
CHANGE IN FUND BALANCE
( 40,866)
( 69,503)
( 479,010)
793,991
204,612
BEGINNING FUND BALANCE
9,802,887
1,181,710
4,632,665
18,869,234
12,721,682
47,208,178
ENDING FUND BALANCE
$ 9,802,887
$ 1,140,844
$ 4,563,162
$ 18,390,224
$ 13,515,673
$ 47,412,790
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
32
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS- PRELIMINARY BUDGET
FISCAL YEAR 2008- 2009
Major Enterprise Funds
General
Fund
Non- Major
Govern-mental
Funds
Non- Major
Internal
Service
Fund
Water
Fund
Sewer
Fund
Total
REVENUES:
Taxes $ 12,035,900 $ 2,228,560 $ 14,264,460
Permits 948,700 948,700
Intergovernmental 962,200 715,000 1,677,200
Use of assets 1,139,720 99,810 $ 77,175 $ 350,000 $ 242,000 1,908,705
Service charges 1,114,550 434,000 230,997 8,100,000 6,158,000 16,037,547
All others 311,550 10,000 321,550
Total Revenues 16,512,620 3,477,370 318,172 8,450,000 6,400,000 35,158,162
EXPENDITURES:
Operations 18,923,980 115,700 25,000 6,761,565 3,636,654 29,462,899
Capital 80,000 831,200 774,900 900,000 1,601,000 4,187,100
Debt Service 80,000 984,847 1,504,014 2,568,861
Total Expenditures 19,003,980 946,900 879,900 8,646,412 6,741,668 36,218,860
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,602,560 526,200 3,128,760
Operating Transfers Out ( 111,200) ( 3,017,560) ( 3,128,760)
Proceeds from borrowing 351,800 900,000 1,601,000 2,852,800
Total Financing Sources ( Uses) 2,491,360 ( 2,491,360) 351,800 900,000 1,601,000 2,852,800
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
39,110
( 209,928)
703,588
1,259,332
1,792,102
ADJUSTMENTS TO GAAP:
Depreciation and amortization ( 350,000) ( 1,413,600) ( 1,205,800) ( 2,969,400)
Principal payment 66,000 343,270 516,730 926,000
Capital expenditures 774,900 900,000 1,601,000 3,275,900
Proceeds from borrowing ( 351,800) ( 900,000) ( 1,601,000) ( 2,852,800)
Total adjustments to GAAP 139,100 ( 1,070,330) ( 689,070) ( 1,620,300)
CHANGE IN FUND BALANCE
39,110
( 70,828)
( 366,742)
570,262
171,802
BEGINNING FUND BALANCE
9,802,887
1,140,844
4,563,162
18,390,224
13,515,673
47,412,790
ENDING FUND BALANCE
$ 9,802,887
$ 1,179,954
$ 4,492,334
$ 18,023,482
$ 14,085,935
$ 47,584,592
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
33
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS- PRELIMINARY BUDGET
FISCAL YEAR 2009- 2010
Major Enterprise Funds
General
Fund
Non- Major
Govern-mental
Funds
Non- Major
Internal
Service
Fund
Water
Fund
Sewer
Fund
Total
REVENUES:
Taxes $ 12,780,000 $ 2,228,560 $ 15,008,560
Permits 973,000 973,000
Intergovernmental 1,029,800 735,000 1,764,800
Use of assets 1,162,116 99,810 $ 74,500 $ 387,000 $ 287,000 2,010,426
Service charges 1,134,003 444,000 304,997 8,750,000 6,341,000 16,974,000
All others 372,207 10,000 382,207
Total Revenues 17,451,126 3,507,370 389,497 9,137,000 6,628,000 37,112,993
EXPENDITURES:
Operations 19,973,686 115,700 25,000 7,020,692 3,797,615 30,932,693
Capital 700,000 412,000 1,500,000 700,000 3,312,000
Debt Service 80,000 975,910 1,487,205 2,543,115
Total Expenditures 19,973,686 815,700 517,000 9,496,602 5,984,820 36,787,808
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,522,560 440,000 2,962,560
Operating Transfers Out ( 2,962,560) ( 2,962,560)
Proceeds from borrowing
Total Financing Sources ( Uses) 2,522,560 ( 2,522,560)
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
169,110
( 127,503)
( 359,602)
643,180
325,185
ADJUSTMENTS TO GAAP:
Depreciation and amortization ( 360,000) ( 1,553,960) ( 1,324,380) ( 3,238,340)
Principal payment 68,000 348,390 521,610 938,000
Capital expenditures 412,000 1,500,000 700,000 2,612,000
Proceeds from borrowing
Total adjustments to GAAP 120,000 294,430 ( 102,770) 311,660
CHANGE IN FUND BALANCE
169,110
( 7,503)
( 65,172)
540,410
636,845
BEGINNING FUND BALANCE
9,802,887
1,179,954
4,492,334
18,023,482
14,085,935
47,584,592
ENDING FUND BALANCE
$ 9,802,887
$ 1,349,064
$ 4,484,831
$ 17,958,310
$ 14,626,345
$ 48,221,437
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
34
2007- 2008 Funding Sources - $ 38 Million ( Excludes Transfers
to Reserves Fund)
Taxes
$ 13,571,160
36%
Proceeds from
borrowing
$ 4,765,000
13%
Permits
$ 925,200
2%
All others
$ 138,103
0%
Enterprise service
charges
$ 13,570,000
36% Service charges
$ 1,514,700
4%
Use of Assets
$ 1,865,285
5%
Intergovern-mental
$ 1,667,500
4%
`
COMBINED FUNDING SOURCES – ALL FUNDS
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Taxes $ 11,279,791 $ 11,921,817 $ 13,166,270 $ 13,571,160 $ 14,264,460 $ 15,008,560
Permits 1,002,681 973,812 909,650 925,200 948,700 973,000
Intergovernmental 1,975,216 2,218,792 1,814,401 1,667,500 1,677,200 1,764,800
Use of Assets 1,548,519 2,115,574 1,728,842 1,865,285 1,908,705 2,010,426
Service Charges:
Governmental 1,260,745 1,294,579 1,475,625 1,514,700 1,548,550 1,578,003
Enterprise 11,679,011 11,696,005 13,029,500 13,570,000 14,258,000 15,091,000
Proceeds from borrowing 4,505,614 6,149,228 7,711,010 4,765,000 2,852,800
All others 319,697 386,582 531,624 138,103 321,550 382,207
TOTAL $ 33,571,274 $ 36,756,389 $ 40,366,922 $ 38,016,948 $ 37,779,965 $ 36,807,996
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
35
TOTAL EXPENDITURES BY TYPE AND FUNCTION – ALL FUNDS
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
OPERATING PROGRAM EXPENDITURES
Public Safety $ 10,737,971 $ 11,834,735 $ 12,928,218 $ 13,408,293 $ 14,081,174 $ 14,929,930
Public Utilities 7,731,867 8,559,960 9,759,892 10,077,808 10,398,219 10,818,307
Streets 1,354,455 1,540,963 1,472,216 1,477,101 1,496,141 1,537,071
Leisure & Social Activities 737,116 767,152 798,200 847,900 860,060 878,315
Community Development 1,201,736 1,275,780 1,488,691 1,481,851 1,528,609 1,607,922
General Government 712,183 779,261 827,578 1,011,693 1,098,696 1,161,148
Total Operating Program Expenditures 22,475,328 24,757,851 27,274,795 28,304,646 29,462,899 30,932,693
CAPITAL EXPENDITURES
Public Safety 11,691 255,621 120,410 191,176 772,100 117,000
Public Utilities 4,795,497 6,346,401 7,924,590 4,979,400 2,521,000 2,426,000
Streets 654,361 844,811 608,000 717,900 780,000 765,000
Leisure & Social Activities 470,801 477,873
Community Development 141,273 18,215 129,000 21,600 82,000 2,000
General Government 38,522 29,346 247,159 112,000 32,000 2,000
Total Capital Expenditures 5,641,344 7,965,195 9,507,032 6,022,076 4,187,100 3,312,000
DEBT SERVICE EXPENDITURES
Public Safety 202,702 202,702 202,702 80,000 80,000
Public Utilities 1,700,127 1,847,660 2,151,838 2,254,748 2,488,861 2,463,115
Streets
Leisure & Social Activities
Community Development
General Government 14,349 14,349 7,174
Total Debt Service Expenditures 1,917,178 2,064,711 2,361,714 2,254,748 2,568,861 2,543,115
TOTAL EXPENDITURES
Public Safety 10,952,364 12,293,058 13,521,330 13,599,469 14,933,274 15,126,930
Public Utilities 14,227,491 16,754,021 19,836,320 17,311,956 15,539,405 15,940,121
Streets 2,008,816 2,385,774 2,080,216 2,278,061 2,452,380 2,489,083
Leisure & Social Activities 737,116 1,237,953 1,276,073 847,900 860,060 878,315
Community Development 1,343,009 1,293,995 1,617,691 1,503,451 1,610,609 1,609,922
General Government 765,054 822,956 1,081,911 1,123,693 1,130,696 1,163,148
Total Expenditures $ 30,033,850 $ 34,787,757 $ 39,143,541 36,581,470 36,218,860 36,787,808
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
36
2007- 2008 Expenditures by Type - $ 36.6 Million
Operating
$ 28,304,646
78%
Capital
$ 6,022,076
16%
Debt service
$ 2,254,748
6%
COMBINED EXPENDITURES BY TYPE – ALL FUNDS
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Operating $ 22,475,328 24,757,851 $ 27,274,795 $ 28,304,646 $ 29,462,899 $ 30,932,693
Capital 5,641,344 7,965,195 9,507,032 6,022,076 4,187,100 3,312,000
Debt Service 1,917,178 2,064,711 2,361,714 2,254,748 2,568,861 2,543,115
TOTAL $ 30,033,850 $ 34,787,757 $ 39,143,541 $ 36,581,470 $ 36,218,860 $ 36,787,808
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
37
2007- 2008 Operating Expenditures by Function - $ 28.3
Million
Community
Development
$ 1,481,851
5%
Leisure & Social
Services
$ 847,900
3%
Streets
$ 1,477,101
5%
Public Safety
$ 13,408,293
47%
Public Utilities
$ 10,077,808
36%
General
Government
$ 1,011,693
4%
COMBINED OPERATING EXPENDITURES BY FUNCTION – ALL FUNDS
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2008/ 09
Public Safety $ 10,737,971 $ 11,834,735 $ 12,928,218 $ 13,408,293 $ 14,081,174 $ 14,929,930
Public Utilities 7,731,867 8,559,960 9,759,892 10,077,808 10,398,219 10,818,307
Streets 1,354,455 1,540,963 1,472,216 1,477,101 1,496,141 1,537,071
Leisure & Social Activities 737,116 767,152 798,200 847,900 860,060 878,315
Community Development 1,201,736 1,275,780 1,488,691 1,481,851 1,528,609 1,607,922
General Government 712,183 779,261 827,578 1,011,693 1,098,696 1,161,148
TOTAL $ 22,475,328 $ 24,757,851 $ 27,274,795 $ 28,304,646 $ 29,462,899 $ 30,932,693
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
38
2007- 2008 Operating Expenditures by Object - $ 28.3 Million
Personnel
Services
$ 18,801,987
66%
Materials &
Services
$ 3,664,282
13%
Transfers to
Internal Service
$ 221,997
1%
Contract
Services
$ 5,616,380
20%
COMBINED OPERATING EXPENDITURES BY OBJECT – ALL FUNDS
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Personnel Services $ 14,070,696 $ 16,231,607 $ 17,339,644 $ 18,801,987 $ 19,930,230 $ 21,084,423
Contract Services 4,719,166 4,665,802 5,614,734 5,616,380 5,713,704 5,820,489
Materials & Services 2,913,976 3,300,937 3,712,817 3,664,282 3,587,968 3,722,784
Transfers to Internal Service 771,490 559,505 607,600 221,997 230,997 304,997
TOTAL $ 22,475,328 $ 24,757,851 $ 27,274,795 $ 28,304,646 $ 29,462,899 $ 30,932,693
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
39
2007- 2008 Total Capital Expenditures by Function - $ 6 Million
Streets
$ 717,900
12%
Public Safety
$ 191,176
3%
General
Government
$ 112,000
2%
Community
Development
$ 21,600
0%
Public Utilities
$ 4,979,400
83%
COMBINED CAPITAL EXPENDITURES BY FUNCTION – ALL FUNDS
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Public Safety $ 11,691 $ 255,621 $ 120,410 $ 191,176 $ 772,100 $ 117,000
Public Utilities 4,795,497 6,346,401 7,924,590 4,979,400 2,521,000 2,426,000
Streets 654,361 844,811 608,000 717,900 780,000 765,000
Leisure & Social Activities 470,801 477,873
Community Development 141,273 18,215 129,000 21,600 82,000 2,000
General Government 38,522 29,346 247,159 112,000 32,000 2,000
TOTAL $ 5,641,344 $ 7,965,195 $ 9,507,032 $ 6,022,076 $ 4,187,100 $ 3,312,000
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
40
COMBINED DEBT SERVICE EXPENDITURES BY FUNCTION – ALL FUNDS
2007- 2008 Total Debt Service by Function
- $ 2.3 Million
Public Utilities
2,254,748
100%
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Public Safety $ 202,702 $ 202,702 $ 202,702 $ 80,000 $ 80,000
Public Utilities 1,700,127 1,847,660 2,151,838 $ 2,254,748 2,488,861 2,463,115
General Government 14,349 14,349 7,174
TOTAL $ 1,917,178 $ 2,064,711 $ 2,361,714 $ 2,254,748 $ 2,568,861 $ 2,543,115
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
41
2007- 2008 Funded Positions by Function - 114.75 FTE
Public Utilities
19.00
17%
Streets
7.00
6%
Community
Development
8.00
7%
General
Government
14.00
12%
Public Safety
66.75
58%
AUTHORIZED REGULAR POSITIONS BY FUNCTION – ALL FUNDS
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Public Safety 63.75 64.75 65.75 66.75 66.75 66.75
Public Utilities 18.00 18.00 18.00 19.00 19.00 19.00
Streets 7.00 7.00 7.00 7.00 7.00 7.00
Community Development 7.00 7.00 7.00 8.00 8.00 8.00
General Government 12.00 14.00 14.00 14.00 14.00 14.00
TOTAL FUNDED POSITIONS BY FUNCTION 107.75 110.75 111.75 114.75 114.75 114.75
Public Safety 3.00 2.00 1.00
General Government 1.00
TOTAL UNFUNDED POSITIONS
BY FUNCTION
4.00
2.00
1.00
TOTAL AUTHORIZED POSITIONS 111.75 112.75 112.75 115.75 118.75 119.75
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
42
SUMMARY OF CHANGES IN FUND BALANCE
BUDGETARY BASIS GAAP BASIS
Other
Financing
Sources
Adjustment
Change in
Fund
Fund Balance
Revenues Expenditures ( Uses) To GAAP Balance Beginning Ending
FISCAL YEAR 2007/ 08 ADOPTED BUDGET
GOVERNMENTAL:
General Fund $ 15,626,078 $ 18,123,638 $ 2,497,560 $ 9,802,887 $ 9,802,887
Special Revenue Funds:
Public Safety Special
Tax Fund
2,322,560
2,322,560
Gas Tax Fund 235,000 10,000 ( 225,000)
Measure “ A” Fund 376,000 5,200 ( 400,000) ( 29,200) 48,644 19,444
Police Grants Fund 100,500 85,500 ( 15,000) 134,546 134,546
Capital Projects Fund 423,310 899,976 465,000 ( 11,666) 998,520 986,854
PROPRIETARY:
Internal Service Fund 305,497 225,200 ( 149,800) ( 69,503) 4,632,665 4,563,162
Enterprise Funds:
Water Fund 7,908,00 10,905,196 3,400,000 ( 881,814) ( 479,010) 18,869,24 18,390,224
Sewer Fund 6,177,00 6,326,760 1,365,000 ( 421,249) 793,991 12,721,682 13,515,673
GRAND TOTAL $ 33,473,945 $ 38,904,030 $ 7,087,560 ($ 1,452,863) $ 204,612 $ 47,208,178 $ 47,412,790
FISCAL YEAR 2006/ 07 – REVISED BUDGET
GOVERNMENTAL:
General Fund $ 15,183,787 $ 17,326,080 $ 2,142,293 $ 9,802,887 $ 9,802,887
Special Revenue Funds:
Public Safety Special
Tax Fund
2,322,560
2,322,560
Gas Tax Fund 230,000 9,297 ( 225,000) ( 4,297) 4,297
Measure “ A” Fund 371,000 5,200 ( 400,000) ( 34,200) 82,844 48,644
Police Grants Fund 100,500 85,500 ( 15,000) 134,546 134,546
Capital Projects Fund 935,065 1,389,532 876,267 421,800 576,720 998,520
PROPRIETARY:
Internal Service Fund 691,100 636,612 $ 255,057 309,545 4,323,120 4,632,665
Enterprise Funds:
Water Fund 7,496,000 11,542,069 4,519,010 ( 760,917) ( 287,976) 19,157,210 18,869,234
Sewer Fund 5,933,500 8,149,251 3,136,000 ( 466,043) 454,206 12,267,476 12,721,682
GRAND TOTAL $ 33,263,512 $ 41,466,101 $ 10,033,570 ($ 971,903) $ 859,078 $ 46,349,100 $ 47,208,178
FISCAL YEAR 2005- 06 – ACTUAL
GOVERNMENTAL:
General Fund $ 14,255,418 $ 16,093,967 $ 2,527,305 $ 688,756 $ 9,114,131 $ 9,802,887
Special Revenue Funds:
Public Safety Special
Tax Fund
2,378,560
2,378,560
Gas Tax Fund 213,255 5,428 ( 225,000) ( 17,173) 21,470 4,297
Measure “ A” Fund 414,338 13,400 ( 425,000) ( 24,062) 106,906 82,844
Police Grants Fund 106,164 111,347 ( 14,740) ( 19,923) 154,469 134,546
Capital Projects Fund 516,741 1,380,471 666,995 ( 196,735) 773,455 576,720
PROPRIETARY:
Internal Service Fund 698,709 473,258 151,501 376,952 3,946,168 4,323,120
Enterprise Funds:
Water Fund 6,920,934 8,873,471 2,759,607 ( 1,013,962) ( 206,892) 19,364,102 19,157,210
Sewer Fund 5,661,547 7,836,415 3.238.621 ( 741,706) 322,047 11,945,429 12,267,476
GRAND TOTAL $ 31,165,666 $ 37,166,317 $ 8,527,788 ($ 1,604,167) $ 922.970 $ 45,426,130 $ 46,349,100
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
43
SUMMARY OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE –
GENERAL FUND
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
REVENUES AND OTHER SOURCES BY
TYPE:
Taxes $ 9,091,589 $ 9,688,685 $ 10,937,710 $ 11,342,600 $ 12,035,900 $ 12,780,000
Permits 1,002,681 973,812 909,650 925,200 948,700 973,000
Intergovernmental 825,357 1,150,206 979,630 957,500 962,200 1,029,800
Use of assets 1,016,188 1,127,020 1,171,242 1,176,975 1,139,720 1,162,116
Service charges 1,120,255 1,149,151 1,081,625 1,095,700 1,114,550 1,134,003
All others 270,550 166,544 103,930 128,103 311,550 372,207
Operating transfers 2,678,692 2,628,560 2,547,560 2,547,560 2,602,560 2,522,560
Total Revenues 16,005,312 16,883,978 17,731,347 18,173,638 19,115,180 19,973,686
EXPENDITURES AND OTHER USES BY
DEPARTMENT:
City Council 36,220 42,008 49,180 26,675 34,963 37,992
City Manager 334,207 365,256 482,971 521,823 537,766 573,111
City Attorney 96,170 110,166 104,956 118,336 124,246 125,389
Finance 260,414 281,672 322,304 369,859 376,721 399,656
General Government 792,699 833,071 885,200 903,080 915,260 933,715
Police 5,333,407 5,809,801 6,289,728 6,833,666 7,201,267 7,557,304
Fire 5,235,790 5,961,227 6,500,190 6,418,947 6,755,407 7,216,726
Planning 325,459 351,359 503,336 444,251 542,117 486,664
Building 876,277 924,421 1,110,355 1,057,200 1,066,492 1,121,258
Streets 1,335,972 1,516,241 1,483,127 1,479,801 1,560,941 1,521,871
Total Expenditures 14,626,615 16,195,222 17,731,347 18,173,638 19,115,180 19,973,686
EXCESS ( SHORTFALL) OF REVENUES
AND OTHER SOURCES OVER ( UNDER)
EXPENDITURES AND OTHER USES
( BUDGETARY BASIS)
1,378,697
688,756
BEGINNING FUND BALANCE 7,735,434 9,114,131 9,802,887 9,802,887 9,802,887 9,802,887
ENDING FUND BALANCE $ 9,114,131 $ 9,802,887 $ 9,802,887 $ 9,802,887 $ 9,802,887 $ 9,802,887
RECOMMENDED RESERVES –
30% OF OPERATING EXPENDITURES
$ 4,387,985
$ 4,858,567
$ 5,319,404
$ 5,452,091
$ 5,734,554
$ 5,992,106
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
44
2007- 2008 General Fund Expenditures by Function - $ 18.2 Million
Streets
$ 1,479,801
8%
Leisure & Social
Activities
$ 847,900
5%
Community
Development
$ 1,501,451
8%
General
Government
$ 1,036,693
6%
Public Safety
$ 13,307,793
73%
GENERAL FUND EXPENDITURES BY FUNCTION
Actual
2004/ 05
Revised
Budget
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Public Safety
Streets
Leisure & Social Activities
Community Development
General Government
$ 10,624,780
1,335,972
737,116
1,201,736
727,011
$ 11,829,539
1,516,241
767,152
1,275,780
806,510
$ 12,851,918
1,483,127
798,200
1,613,691
984,411
$ 13,307,793
1,479,801
847,900
1,501,451
1,036,693
$ 14,011,874
1,560,941
860,060
1,608,609
1,073,696
$ 14,829,430
1,521,871
878,315
1,607,922
1,136,148
TOTAL $ 14,626,615 $ 16,195,222 $ 17,731,347 $ 18,173,638 $ 19,115,180 $ 19,973,686
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
45
2007- 2008 General Fund Expenditures by Object - $ 18.2 Million
Capital Outlay - 0%
$ 87,500
Transfers to Internal
Service - 0%
$ 33,747
Contract Services -
10% $ 1,766,380
Personnel Services -
91% $ 16,547,333
Reimbursements -
( 11%) $( 2,091,773)
Materials & Services
- 10% $ 1,830,451
Debt Service - 0% -
GENERAL FUND EXPENDITURES BY OBJECT
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
Personnel Services $ 12,495,242 $ 14,225,446 $ 15,298,747 $ 16,547,333 $ 17,547,057 $ 18,567,050
Contract Services 1,663,060 1,704,450 1,693,320 1,766,380 1,722,204 1,732,814
Materials & Services 1,334,483 1,465,559 1,793,036 1,830,451 1,796,000 1,845,519
Charges/( Credits) –
Other Programs
( 1,574,629)
( 1,797,962)
( 1,977,796)
( 2,091,773)
( 2,180,028)
( 2,280,444)
Transfers to Internal Service 694,110 482,125 511,600 33,747 38,747 108,747
Capital 101,255 405,267 87,500 191,200
Debt Service 14,349 14,349 7,174
TOTAL $ 14,626,615 $ 16,195,222 $ 17,731,347 $ 18,173,638 $ 19,115,180 $ 19,973,686
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
46
GENERAL FUND EXTENDED FINANCIAL FORECAST 2005- 2015 ($ 000) ( 1)
This extended financial forecast is a model, designed to take a forward look and project what could occur given a certain set of parameters. It
can help the Town identify its priorities, allocate its resources efficiently and continue to deliver quality services to the community
05/ 06 06/ 07 07/ 08 08/ 09 09/ 10 10/ 11 11/ 12 12/ 13 13/ 14 14/ 15
Revenues:
Property taxes $ 7,980 $ 8,876 $ 9,488 $ 10,098 $ 10,754 $ 11,453 $ 12,197 $ 12,990 $ 13,834 $ 14,733
Excess ERAF 623 991 755 800 848 903 962 1,025 1,092 1,163
Public safety tax 2,233 2,229 2,229 2,229 2,229 2,229 2,229 2,229 2,229 2,229
Business license tax 635 616 628 647 666 686 707 728 750 773
Construction permits 841 775 790 814 838 863 889 916 943 971
Vehicle license fee 963 723 738 753 768 783 799 815 831 848
Franchise fees 673 521 520 476 491 507 523 540 557 575
Service charges 1,149 1,082 1,096 1,115 1,134 1,157 1,180 1,204 1,228 1,253
All others 1,787 1,918 1,930 2,183 2,245 2,310 2,376 2,443 2,512 2,582
Total 16,884 17,731 18,174 19,115 19,973 20,891 21,862 22,890 23,976 25,127
Expenditures:
Salaries 7,999 8,764 9,304 9,794 10,284 10,798 11,338 11,905 12,500 13,125
Retirement costs 2,244 2,521 2,926 3,192 3,448 3,620 3,801 3,991 4,191 4,401
Insurances 1,102 1,312 1,460 1,581 1,707 1,844 1,992 2,151 2,323 2,509
All others 2,880 2,701 2,857 2,980 3,128 3,191 3,255 3,320 3,386 3,454
Total 14,225 15,298 16,547 17,547 18,567 19,453 20,386 21,367 22,400 23,489
Mat, supplies 1,387 1,516 1,543 1,418 1,297 1,323 1,349 1,377 1,405 1,433
Transfers 583 917 84 150 109 115 127 146 171 205
Total 16,195 17,731 18,174 19,115 19,973 20,891 21,862 22,890 23,976 25,127
Excess 689
Beg Fund Balance 9,114 9,803 9,803 9,803 9,803 9,803 9,803 9,803 9,803 9,803
End Fund Balance $ 9,803 $ 9,803 $ 9,803 $ 9,803 $ 9,803 $ 9,803 $ 9,803 $ 9,803 $ 9,803 $ 9,803
Percentage Changes in Forecast for Revenues and Expenditures
Revenues:
Property taxes 5.5% 11.2% 6.9% 6.4% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5%
Excess ERAF 47.6% 59.0% - 23.8% 6.0% 6.0% 6.5% 6.5% 6.5% 6.5% 6.5%
Public safety tax 2.1% - 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Business license tax - 0.6% - 3.1% 2.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Construction permits - 3.3% - 7.9% 2.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Vehicle license fee 36.6% - 24.9% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Franchise fees 14.8% - 22.5% - 0.2% - 8.5% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2%
Service charges 2.6% - 5.9% 1.3% 1.7% 1.7% 2.0% 2.0% 2.0% 2.0% 2.0%
All others - 6.5% 7.5% 0.6% 13.2% 2.8% 3.0% 3.0% 3.0% 3.0% 3.0%
Total 5.5% 5.0% 2.5% 5.2% 4.5% 4.6% 4.6% 4.7% 4.7% 4.8%
Expenditures:
Salaries 3.7% 9.6% 6.2% 5.3% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Retirement costs 46.2% 12.4% 16.1% 9.1% 8.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Insurances 19.2% 19.0% 11.3% 8.3% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
All others 23.9% - 6.2% 5.8% 4.3% 5.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Total 13.8% 7.5% 8.2% 6.0% 5.8% 4.8% 4.8% 4.8% 4.8% 4.9%
Materials & supplies 5.7% 9.7% 4.0% - 1.0% - 0.6% 2.0% 2.0% 2.0% 2.0% 2.0%
Reimbursements 14.2% 10.0% 5.8% 4.2% 4.6% 2.0% 2.0% 2.0% 2.0% 2.0%
Contributions - 16.0% 57.2% - 90.9% 79.0% - 27.5% 5.5% 10.0% 15.0% 17.0% 20.0%
Total 10.7% 9.5% 2.5% 5.2% 4.5% 4.6% 4.6% 4.7% 4.7% 4.8%
CALPERS rates:
Police 24.945% 35.765% 37.472% 39.445% 40.572% 40.572% 40.572% 40.572% 40.572% 40.572%
Fire 22.739% 22.839% 28.427% 31.805% 32.714% 32.714% 32.714% 32.714% 32.714% 32.714%
Miscellaneous 21.287% 25.092% 25.459% 26.853% 27.621% 27.621% 27.621% 27.621% 27.621% 27.621%
Valuation dates 6/ 30/ 03 6/ 30/ 04 6/ 30/ 05 6/ 30/ 06 6/ 30/ 07 6/ 30/ 08 6/ 30/ 09 6/ 30/ 10 6/ 30/ 11 6/ 30/ 12
PLAN CHANGES: Police to 3% @ 50 effective 1/ 05; Miscellaneous to 3% @ 60 effective 7/ 05; Fire to 3% @ 55 effective 7/ 07
( 1) Forecast does not include potential cost to fund GASB 45 ( Other Post Employment Benefits).
Section D
OPERATING PROGRAMS
OPERATING PROGRAMS
EXPENDITURES BY FUNCTION AND BY DEPARTMENT
47
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
PUBLIC SAFETY
Police Protection $ 5,502,181 $ 5,873,508 $ 6,428,028 $ 6,989,346 $ 7,325,767 $ 7,713,204
Fire Protection 5,235,790 5,961,227 6,500,190 6,418,947 6,755,407 7,216,726
Total Public Safety 10,737,971 11,834,735 12,928,218 13,408,293 14,081,174 14,929,930
PUBLIC UTILITIES
Water Distribution 4,855,297 5,226,297 6,094,705 6,523,557 6,761,565 7,020,692
Wastewater Collection 2,876,570 3,333,663 3,665,187 3,554,251 3,636,654 3,797,615
Total Public Utilities 7,731,867 8,559,960 9,759,892 10,077,808 10,398,219 10,818,307
STREETS 1,354,455 1,540,963 1,472,216 1,477,101 1,496,141 1,537,071
LEISURE & SOCIAL ACTIVITIES 737,116 767,152 798,200 847,900 860,060 878,315
COMMUNITY DEVELOPMENT
Planning 325,459 351,359 503,336 444,251 462,117 486,664
Building 876,277 924,421 985,355 1,037,600 1,066,492 1,121,258
Total Community Development 1,201,736 1,275,780 1,488,691 1,481,851 1,528,609 1,607,922
GENERAL GOVERNMENT
Legislative & Policy 36,220 42,008 49,180 26,675 34,963 37,992
City Administration 334,207 365,256 482,971 521,823 537,766 573,111
Public Works Administration
Legal Services 96,170 110,166 104,956 118,336 124,246 125,389
Finance 260,414 281,672 322,304 369,859 376,721 399,656
General Services ( 14,828) ( 19,481) ( 131,833) ( 25,000) 25,000 25,000
Total General Government 712,183 779,261 827,578 1,011,693 1,098,696 1,161,148
TOTAL OPERATING EXPENDITURES
$ 22,475,328
$ 24,757,851
$ 27,274,795
$ 28,304,646
$ 29,462,899
$ 30,932,693
OPERATING PROGRAMS
SUMMARY EXPENDITURES BY OBJECT – ALL FUNDS COMBINED
48
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
PERSONNEL SERVICES
Salaries and Wages
Salaries – Regular $ 8,629,654 $ 9,054,696 $ 9,910,600 $ 10,559,671 $ 11,136,635 $ 11,693,468
Salaries – Temporary 241,695 344,562 218,500 135,000 90,000 90,000
Overtime 693,064 965,224 553,050 647,500 669,500 684,560
Total Salaries and Wages 9,564,413 10,364,482 10,682,150 11,342,171 11,896,135 12,468,028
Benefits
Retirement 1,698,707 2,485,982 2,809,052 3,246,295 3,519,156 3,800,688
Social Security/ Medicare 357,135 394,422 370,540 407,558 427,294 444,385
Health and Other Insurance 1,096,060 1,318,180 1,542,579 1,725,769 1,878,416 2,028,689
Retirees’ Health Insurance 521,883 595,862 658,550 789,530 853,341 921,607
Workers Compensation 435,260 607,543 738,857 782,221 823,446 864,617
All Others 397,238 465,136 537,916 508,443 532,442 556,409
Total Benefits 4,506,283 5,867,125 6,657,494 7,459,816 8,034,095 8,616,395
TOTAL PERSONNEL SERVICES 14,070,696 16,231,607 17,339,644 18,801,987 19,930,230 21,084,423
CONTRACT SERVICES 4,719,166 4,665,802 5,614,734 5,616,380 5,713,704 5,820,489
MATERIALS & SERVICES 2,913,976 3,300,937 3,712,817 3,664,282 3,587,968 3,722,784
TRANSFERS TO INTERNAL SERVICE 771,490 559,505 607,600 221,997 230,997 304,997
TOTAL OPERATING EXPENDITURES
$ 22,475,328
$ 24,757,851
$ 27,274,795
$ 28,304,646
$ 29,462,899
$ 30,932,693
OPERATING PROGRAMS
SUMMARY EXPENDITURES BY OBJECT – GENERAL FUND
49
Actual
2004/ 05
Actual
2005/ 06
Revised
Budget
2006/ 07
Adopted
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Preliminary
Budget
2009/ 10
PERSONNEL SERVICES
Salaries and Wages
Salaries – Regular $ 7,711,009 $ 7,999,468 $ 8,763,762 $ 9,303,517 $ 9,794,000 $ 10,283,701
Salaries – Temporary 170,296 177,281 128,500 70,000 70,000 70,000
Overtime 631,748 876,916 492,050 562,500 579,500 594,560
Total Salaries and Wages 8,513,053 9,053,665 9,384,312 9,936,017 10,443,500 10,948,261
Benefits
Retirement 1,534,816 2,243,859 2,521,288 2,926,495 3,167,573 3,420,979
Social Security/ Medicare 275,197 296,634 287,687 311,867 325,982 339,021
Health and Other Insurance 924,489 1,102,353 1,312,124 1,460,359 1,580,878 1,707,348
Retirees’ Health Insurance 472,235 537,151 597,030 725,690 783,908 846,620
Workers Compensation 395,028 549,664 660,095 695,740 730,916 767,461
All Others 380,424 442,120 536,211 491,165 514,300 537,360
Total Benefits 3,982,189 5,171,181 5,914,435 6,611,316 7,103,557 7,618,789
TOTAL PERSONNEL SERVICES 12,495,242 14,225,446 15,298,747 16,547,333 17,547,057 18,567,050
CONTRACT SERVICES 1,663,060 1,704,450 1,693,320 1,766,380 1,722,204 1,732,814
MATERIALS & SERVICES 1,334,483 1,465,559 1,793,035 1,830,451 1,796,000 1,845,519
CREDITS FROM OTHER PROGRAMS ( 1,574,629) ( 1,797,962) ( 1,977,796) ( 2,091,773) ( 2,180,028) ( 2,280,444)
TRANSFERS TO INTERNAL SERVICE 694,110 482,125 511,600 33,747 38,747 108,747
TOTAL OPERATING EXPENDITURES
$ 14,612,266
$ 16,079,618
$ 17,318,906
$ 18,086,138
$ 18,923,980
$ 19,973,686
PUBLIC SAFETY
OPERATION: Police Protection
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grant Fund, Capital Projects Fund
50
MISSION
The mission of the Hillsborough Police Department is the detection and prevention of criminal activity, the
apprehension and conviction of offenders, the protection of life and property, the enforcement of laws and
ordinances, and above all, customer service outreach and proactive responsiveness to the public.
OPERATIONAL COSTS
Actual
2004/ 05
Actual
2005/ 06
Revised
2006/ 07
Adopted
2007/ 08
Preliminary
2008/ 09
Preliminary
2009/ 10
Personnel Services $ 4,402,398 $ 5,009,722 $ 5,551,947 $ 6,092,571 $ 6,449,658 $ 6,826,776
Contract Services 55,583 58,511 62,000 55,180 55,200 55,400
Materials & Services 613,650 642,175 814,081 836,446 815,760 825,879
Transfers to Internal Service 430,550 163,100 5,149 5,149 5,149
Total $ 5,502,181 $ 5,873,508 $ 6,428,028 $ 6,989,346 $ 7,325,767 $ 7,713,204
DESCRIPTION
The department works to ensure the safety and welfare of the Town residents and their property. This goal is
realized through a dynamic combination of proactive patrol, investigations, crime prevention, community
education and other interactions. The department consists of two divisions:
􀂃 Administrative Services Division ( Headed by the Services Captain) provides support to Operations by
ensuring the availability and continued maintenance of supplies and equipment, such as vehicles,
weapons ( lethal & less lethal) and radios, as well as the dispatching of Officers to calls for service. It is
responsible for the training, recruitment and retention of personnel. This division also handles both
external and internal administrative investigations, court filings, evidence handling, records management
and is a liaison to other law enforcement agencies, i. e.: FBI, DOJ, Secret Service, etc.
􀂃 Operations Division ( Headed by the Patrol Captain) consists of front line Police Officers and Inspectors
who serve the residents. They accept crime reports, conduct criminal investigations, manage traffic
issues, conduct community policing programs, provide education, manage the Alarm Specialists Program,
and participate in multi- jurisdictional activities such as SWAT & K- 9 trainings and call- outs, Mutual Aid in
surrounding areas and other county- wide regionalized multi- jurisdictional enforcement programs. They
also provide a School Resource Officer to schools, Training Officers to the police academy and conduct
various school programs and activities.
STAFFING SUMMARY
Actual
2004/ 05
Actual
2005/ 06
Revised
2006/ 07
Proposed
2007/ 08
Preliminary
2008/ 09
Preliminary
2009/ 10
Police Chief 1 1 1 1 1 1
Police Captain 2 2 2 2 2 2
Police Lieutenant * 1 1 1
Police Sergeant 4 4 4 4 4 4
Police Corporal 4 4 4 4 4 4
PUBLIC SAFETY
OPERATION: Police Protection
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grant Fund, Capital Projects Fund
51
STAFFING SUMMARY
Actual
2004/ 05
Actual
2005/ 06
Revised
2006/ 07
Adopted
2007/ 08
Preliminary
2008/ 09
Preliminary
2009/ 10
Police Officers * 13 14 15 15 15 15
Communications Officers 4 4 4 4 4 4
Records Supervisor 1 1 1 1 1 1
Police Service Technician 2 2 2 2 2 2
Code Enforcement Officer 1 1 1 1 1 1
Executive Assistant 1 1 1 1 1 1
Total 33 34 35 36 36 36
* Total authorized positions in the department are 36. To help balance the budget, the Police Lieutenant
position had been left unfunded from FY2003/ 04; and two police officers positions were not funded during
2003- 05. Funding for one police officer was resumed in 2005/ 06 and funds for the 2nd police officer were
placed back in budget year 2006/ 07. Funding for the Lieutenant’s position is being resumed starting
FY2007/ 08.
SIGNIFICANT PROGRAM CHANGES
This year’s budget resumed funding for the Lieutenant position that was cut back in the previous years as
discussed above.
Chief of Police
ADMINISTRATIVE SERVICES
Police Captain ( 1)
PATROL/ OPERATIONS
Police Captain ( 1)
COMMUNICATIONS
Dispatchers ( 4) Records
Supervisor ( 1)
Executive
Assistant ( 1)
Police Lieutenant
( 1)
A TEAM ( Days)
Sergeant ( 1)
Corporal ( 1)
Officers ( 4)
B TEAM ( Days)
Sergeant ( 1)
Corporal ( 1)
Officers ( 3)
C TEAM ( Evenings)
Sergeant ( 1)
Corporal ( 1)
Officers ( 3)
D TEAM ( Evenings)
Sergeant ( 1)
Corporal ( 1)
Officers ( 3)
Police Inspectors ( 2) Reserve Police Officer
( 1)
Code Enforcement Officer ( 1)
Police Service Technicians ( 2)
PUBLIC SAFETY
OPERATION: Police Protection
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grant Fund, Capital Projects Fund
52
KEY PLANS FOR THE NEXT PERIOD
􀂃 Continue to provide proactive, front line law enforcement services ( City Goal 2).
􀂃 Continue to procure the most cost effective police equipment and services ( City Goal 4).
􀂃 Seek to replace and update equipment that will advance the technical position of the department’s staff ( City
Goal 8).
􀂃 Continue to advance integration with other law enforcement agencies in multi- jurisdictional issues including
home, vehicle & construction burglaries, identity/ mail theft rings, homeland security issues, SWAT operations,
regional gang enforcement and police training at all levels ( City Goals 2 and 6).
􀂃 Continue in- house team building activities ( City Goal 8).
􀂃 Continue leadership in implementing strategic plans for technology trends among the county’s police
departments ( City Goals 6 and 8).
􀂃 Continue and expand outreach efforts to the community that include summer safety talks, bicycle safety
rodeo, Read All Day program, HTV Channel 27 personal safety commercials, emergency preparedness
training for school faculty, identity theft presentations, internet safety for parents and kids, etc. ( City Goals 2 and
5).
􀂃 Fully roll out and implement the RoamSecure Community Alert notification system for 2007/ 08 ( City Goals 5 and
8).
􀂃 Recruit and retain highly qualified police officer candidates filling the authorized department staffing levels
( City Goal 8).
POLICE ACTIVITY HISTORY 2004/ 05 2005/ 06 2006/ 07
as of March 30 2007
Total calls for service 7,244 7,120 5,232
Average response time 4: 27 4: 56 4: 51
Arrests – Felony Adult 10 18 8
Arrests – Felony Juvenile 2 0 3
Arrests – Total Adult 88 68 46
Arrests – Total Juvenile 39 14 11
Accidents – Injury 18 14 13
Accidents – Non- injury 67 61 48
Citations issued ( all traffic) 952 1,039 716
Crimes – Burglaries ( all) 34 49 13
Crimes – Identity Theft 11 18 13
Crimes – Stolen Vehicles 9 3 6
Crimes – Domestic Violence 12 14 8
Crimes – Child Abuse 11 17 4
Crimes – Elder/ Dependent Adult Abuse 1 7 1
Crimes – Drunk Driving ( Arrests) 7 11 7
Crimes – Sexual Assault Investigations 3 4 2
Alarm activations ( all) 2,711 2,706 1,857
Total Incident Reports 533 528 364
City Ordinance Violations – Case reports 1 3 4
City Ordinance Violations – Citations 80 77 54
PUBLIC SAFETY
OPERATION: Police Protection
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grant Fund, Capital Projects Fund
53
PRIOR PERIOD’S MAJOR ACCOMPLISHMENTS
􀂃 Continued to hold one of the lowest crime rates of any California city with populations over 10,000 through
pro- active patrol and investigation efforts ( City Goal 2).
􀂃 Continued using and coordinating tactical information with the County- wide Electronic Tracking System to
locate and apprehend regional bank robbery suspects ( City Goals 2 and 6).
􀂃 Secured grants which support and enhance equipment acquisitions for police personnel ( City Goals 2,4, and 8).
􀂃 Accessed departmental training and equipment support from regionalized grant funding sources ( City Goals 4
and 6).
􀂃 Continued excellent relationships with the Hillsborough School District through interactive safety programs,
holiday and personal safety presentations, lunch programs and disaster preparedness meetings. This
includes Nueva and Crystal Springs Uplands. ( City Goals 2 and 5).
􀂃 Fully participated in the 2006 County- wide Gang Task Force to disrupt and dismantle area specific criminal
street gang activity ( City Goals 2 and 6).
􀂃 Continued and fully developed the Peninsula Rangemasters Group, a highly specialized cadre of firearms