TOWN OF
HILLSBOROUGH, CALIFORNIA
ADOPTED BUDGET
FISCAL YEAR 2006- 2007
With Preliminary Budgets
For Fiscal Years 2007- 2008 & 2008- 2009
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.
Section A
INTRODUCTION
Budget Message 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.
Section C
BUDGET SUMMARIES
Fund Structure and Basis of Budgeting 23
Shows budgetary fund structure including description of each fund and
discusses “ basis of accounting” used.
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 2006/ 07 25
Fiscal Year 2005/ 06 26
Fiscal Year 2004/ 05 27
Combined Funding Sources 28
Combined Expenditures by Type 29
Combined Operating Expenditures
By Function 30
By Object 31
Combined Capital Expenditures by Function 32
Combined Debt Service Expenditures by
Function 33
Authorized Regular Positions by Function 34
Summary of Changes in Fund Balance
Fiscal Years 2006/ 07, 2005/ 06 &
2004/ 05 35
GENERAL FUND
Summary of Revenues, Expenditures and Changes
In Fund Balance 36
Operating Expenditures
By Function 37
By Object 38
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 39
Operating Expenditures by Object: All Funds 40
Operating Expenditures by Object:
General Fund 41
Public Safety
Police 42
Fire 46
Public Utilities
Water 50
Wastewater 53
Streets
Streets 56
Leisure and Social Activities
General Government 58
Community Development
Planning 59
Building 62
General Government
Legislative and Policy
City Council 65
General Administration
City Manager’s 67
Public Works Administration 70
Legal Services
City Attorney 73
Support Services
WHAT’S INSIDE
Finance 75
General Services 78
Section E
CAPITAL IMPROVEMENT PLAN ( CIP)
Includes information of major capital projects and prior year’s highlights.
Summary of CIP Expenditures by Function 79
CIP Expenditures Project Detail by Function
and Department 80
Individual Project Descriptions –
Fiscal Year 2006/ 07 83
Prior Year’s Capital Improvement Plan
Highlights 95
Vehicle Replacement Schedule 99
Miscellaneous Replacement Schedule 100
Section F
DEBT SERVICE REQUIREMENTS
Includes summary information about outstanding debt by function.
Debt Summary 101
Summary of Annual Payments by Function
and Funding Source 103
Computation of Legal Debt Margin 104
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 105
All Governmental Funds 106
All Enterprise Funds 107
All Non- Major Governmental Funds 108
All Special Revenue Funds 109
Individual Fund Balance Statements
General Fund 110
Special Revenue Funds
Public Safety Special Tax Fund 111
Gas Tax Fund 112
Measure “ A” Tax Fund 113
Police Grants Fund 114
Capital Project Funds 115
Internal Service – Replacement Fund 116
Enterprise Funds
Water Fund 117
Sewer Fund 118
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 119
Revenues by Major Category and Source 128
Expenditure Summaries
Includes expenditures summaries by type and function
Total Expenditures by Type and Function 131
Interfund Transactions
A summary of inter- departmental and inter- fund transfers.
Operating Transfers 132
Staffing Summary 133
A listing of regular positions by function and by department
Other Statistical and Financial Summaries:
2006/ 07 Appropriations Limit Calculation 135
A statement of the City’s compliance to the State’s appropriations
limitation law.
Revenue and Expenditure Trends
( All Governmental Funds):
Last Five Completed Fiscal Years 136
Includes summaries showing revenue and expenditure trends for
the last five years for governmental funds
Community Profile and Statistic 137
Includes an overview of Hillsborough and demographic and economic
statistics
Section I
BUDGET REFERENCE MATERIALS
Summary of Major Policy Documents 143
Includes a list of policy documents that guide the preparation and execution
of the City’s Financial Plan and its implementation
Budget Glossary 145
A listing of terms and abbreviations used throughout this document
Budget Resolutions 149
Includes the City Council resolutions adopting the budget
Budget Calendar 153
A detailed budget calendar - Fiscal Year 2006- 07 budget.
WHAT’S INSIDE
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 for the fiscal year 2006- 07 used in
Identifying the 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.
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 an in-depth
workshop to review the City’s fiscal outlook for
the next three years and the status of prior goals;
present their individual goals and then set and prioritize
major goals and work programs for the next three
years. 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
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.
PREFACE
BUDGET PROCESS OVERVIEW
ii
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. Please refer to Section I of this budget
document to view the budget year’s detail budget
calendar.
Section A
INTRODUCTION
INTRODUCTION
BUDGET MESSAGE
1
TO: City Council
FROM: Anthony Constantouros, City Manager
Maria Edna J. Masbad, Finance Director
OVERVIEW
The Town staff has successfully prepared a
balanced budget for Fiscal Year 2006/ 07 that
continues to deliver a high level of service to the
community while maintaining a strong financial
position.
This year’s focus is to continue critical water and
sewer and storm drain infrastructure improvements
and seek additional funding for streets repair and
maintenance ( Pavement Management Program).
Another area the Town addressed this budget year
is funding of several unfilled positions and the
development of a disaster preparedness program.
CHALLENGES AND STRATEGY
BACKGROUND – WHAT WE HAVE DONE
Like most cities in the peninsula, the Town, faced
with rising benefits- related personnel costs, has
been careful in managing expenses and studying
ways in sustaining fiscal viability. The Town
addressed these challenges by the following
preventive measures:
1. Combined fire services with the City of
Burlingame with cost savings in excess of $ 1.8
million a year for the citizens of Burlingame and
Hillsborough.
2. Vacant positions were left unfilled. Three ( 3)
public safety and a Human Resources Specialist
positions were left unfilled at the start of FY
03/ 04.
3. Diversified revenue base by implementing user
cost recovery goals ensuring that Town is
reimbursed actual costs for services delivered to
consumers other than the general public.
4. Deferred regular transfers to fund vehicle and
equipment replacement and the unfunded
liability for retirees’ health insurance costs.
5. Implemented other reductions in various areas
and was proactive in seeking additional revenue
sources in the forms of grants and combined
services with other municipalities.
CONTINUING CHALLENGES
Retirement, health insurance and workers
compensation costs
The city continues to face rising costs in the areas of
health insurance, retirement and workers’
compensation costs. Like other governments, the
Town seeks to find some relief from double- digit
increases in these areas. The graphs below showed
the dramatic increases of these costs since FY
99/ 00:
$ 0
$ 500
$ 1,000
$ 1,500
$ 2,000
$ 2,500
Thousands
00 01 02 03 04 05 06 07
Health & Other Insurances - All Funds
Active Retirees
INTRODUCTION
BUDGET MESSAGE
2
$ 0
$ 500
$ 1,000
$ 1,500
$ 2,000
$ 2,500
$ 3,000
$ 3,500
$ 4,000
Thousands
00 01 02 03 04 05 06 07
Retirement & Workers' Compensation Costs - All Funds
Retirement Costs Workers' Comp
As in the past, Town management will be closely
monitoring these costs to ensure that it continues to
be fiscally prudent while maintaining the usual high
level of service to its citizens despite these higher
costs. The city is committed to an ongoing program
of productivity improvements. It is proud of its ability
to cutting costs without adversely impacting the level
of service. It will continue to look for efficiencies in
the delivery of services and doing more with less.
Previous Years’ Reprogramming of Scheduled
Transfers to the Asset Replacement Fund and
Funding for the Other Post Employment Benefits
( OPEB)
The Town’s inability to transfer funding in this area
as scheduled is a concern. However, there are
enough reserves in the fund that meet the vehicle
replacement needs in the next couple of years.
KEY BUDGET FEATURES
The FY 06/ 07 budget contains the following key
features:
Staffing Changes – Funding for the 2nd patrol officer
was restored. This leaves only the Police Lieutenant
position of the 3 that were unfilled in the previous
budget cycles. The Human Resources Specialist
that was initially authorized in FY 03/ 04 is fully
funded in this budget cycle. Service clerk functions
that were previously performed by part- time help are
now being done by a permanent full- time position.
Two maintenance workers were reclassified to
working supervisors allowing the Assistant
Superintendent to assume a larger role in the
management and inspection of water capital
projects.
Disaster Preparedness Program – The budget also
includes funding for a part- time Disaster
Preparedness Coordinator to assess disaster
readiness and update the Town’s Disaster Plan.
This position will also explore a combined
Emergency Operations Center ( EOC) with the City
of Burlingame, and provide training to Town
employees.
Additional Funding for Streets Improvements – Major
streets improvements were traditionally funded from
the gas tax and Measure " A”. These revenues fund
approximately $ 400,000 a year– a funding level that
proved not sufficient to allow the Town to maintain
its streets. This budget year, the City Council
approved a vehicle impact fee (. 83% of reported
permit valuation paid upon issuance of building
permit) - a charge levied on construction trucks,
which account for the largest percentage of damage
to city streets. The fee is expected to bring in an
additional $ 490,000 annually.
Water and Wastewater Rates Increases – The water
and sewer funds’ combined operating expenditures
total $ 13.4 million ( GAAP basis). To pay for these
operations, including debt service of approximately
$ 40.2 million in long- term debt, the Town approved a
12 percent increase in wastewater fees and plans
for a mid- year 10 percent water rate increase.
Capital Improvement Program – The Town plans to
undertake $ 4 million in water and wastewater and
storm drain capital improvement projects this year as
part of a 10- year improvement plan. Approximately
$ 400,000 is committed to streets improvement. The
rest of the capital improvement program can be
found in Section E of this budget document.
Employee Compensation and Benefits – The Town
prides itself with its ability to attract and retain
outstanding employees with excellent work ethics.
Town employees are divided into five groups for the
purpose of determining salary compensation and
INTRODUCTION
BUDGET MESSAGE
3
benefits – Public Works and Clerical, Police, Fire,
Fire Administrators and the unrepresented
employees. The Town continues to maintain
excellent labor relations and recently concluded
negotiations for a five- year contract with the Police
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. This allows the Town to offer a
competitive salary and benefit package.
FINANCIAL HIGHLIGHTS
Total appropriations for 2006/ 07 are $ 34.8 million
summarized as follows:
Governmental/
Internal
Service Funds
Enterprise
Funds
Total
Operations $ 17,258,624 $ 9,568,272 $ 26,826,896
Capital 1,037,310 4,050,000 5,087,310
Debt Service 209,876 2,151,838 2,361,714
TOTAL $ 18,505,810 $ 15,770,110 $ 34,275,920
Utilities account for 46% of the total budget followed
by Public Safety accounting for 38%.
TOTAL EXPENDITURES BY FUNCTION
Public Safety
38%
Public Utilities
46%
Community
Development
5%
Streets
6%
Leisure & Social
Activities
2%
General
Government
3%
There are adequate resources to fund the proposed
expenditures.
As a service oriented entity, personnel costs
represent the largest component of the operating
costs of $ 26.8 million:
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel services $ 17,339,644 $ 18,306,484 $ 19,359,726
Contract services 5,263,980 5,552,506 5,865,019
Materials &
services
3,775,672
3,991,469
4,143,281
Transfers to
Internal Service
Fund
447,600
198,300
135,800
TOTAL $ 26,826,896 $ 28,048,759 $ 29,503,826
The table also reflects that, based on the revenue
projections for the next two years, the Town would
not be able to maintain the desired funding level for
the asset replacement fund.
GENERAL FUND
Total General Fund operations for 2006/ 07 amount
to $ 17.4 million as summarized in the following
chart. The chart also provides an extended financial
outlook for the next two years and includes the
recommended minimum level of reserves computed
@ 30% of operating budget:
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Revenues $ 17,339,298 $ 17,979,098 $ 18,476,240
Expenditures 17,339,298 17,979,098 18,976,240
Excess( Shortfall) - 0 - - 0 - ( 500,000)
Beginning Fund
Balance
9,114,131
9,114,131
9,114,131
Ending Fund
Balance
$ 9,114,131
$ 9,114,131
$ 8,614,131
Recommended
Minimum Level Of
Reserves
$ 5,201,789
$ 5,393,729
$ 5,692,872
While this chart shows a projected $ 500,000
shortfall three years out, this figure is a conservative
estimate representing less than 3% of the budget.
Past experience has indicated that these projections
can self- correct when actual revenues are known,
or, if needed, minimal delays in filling a few
positions.
Revenues
Total General Fund revenues are projected to
increase by 6% as reflected in the following table.
INTRODUCTION
BUDGET MESSAGE
4
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Property taxes $ 8,615,700 $ 9,012,700 $ 9,429,400
Excess ERAF 760,200 813,400 854,100
Special public
safety tax
2,228,560
2,228,560
2,228,560
Business license 615,900 628,200 640,800
Construction
permits
750,600
765,600
780,900
Vehicle license fee 777,240 792,800 808,700
Service charges 1,078,614 1,101,971 1,125,874
All others 2,512,484 2,635,867 2,607,906
TOTAL $ 17,339,298 $ 17,979,098 $ 18,476,240
% of change over
prior year
6%
4%
3%
The graph on the upper right depicts Town’s general
fund revenues. It also shows the Town’s reliance on
property taxes which have been stable through the
years with property valuation going up an annual
average of 7% most recently. Construction permits
are expected to remain flat the next 3 years.
Business license tax revenues will follow that trend
since most of the business licenses are paid by
contractors.
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 is expected to remain flat.
The vehicle license fee subvention from the State is
back at its original level. The Town continues to
receive excess Educational Revenue Augmentation
Fund ( ERAF), representing property tax
contributions mandated by the State in excess of
school funding levels.
Major fees 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 fiscal policies.
WHERE THE MONEY COMES FROM - GENERAL
FUND
Fees and
service
charges
6%
All others
14%
Construction
permits
4%
Business
license
4% Special public
safety tax
13%
Vehicle license
fee
4%
ERAF Refund
4%
Property taxes
51%
Expenditures
Similarly, the general fund FY 06/ 07 appropriations
are projected to increase by 6% as summarized
below:
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Public safety $ 12,666,918 $ 13,244,856 $ 13,940,609
Streets 1,371,078 1,453,359 1,522,888
Leisure & Social
Services
798,200
816,750
850,250
Community
Development
1,543,691
1,474,292
1,612,811
General
Government
959,411
989,841
1,049,682
TOTAL $ 17,339,298 $ 17,979,098 $ 18,976,240
% of change over
prior year
6%
4%
6%
As depicted 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
Services
4%
Community
Development
9%
INTRODUCTION
BUDGET MESSAGE
5
PUBLIC FACILITIES CAPITAL IMPROVEMENT
PLAN
The adopted budget reflects funding for the following
capital improvements:
􀂃 Audio/ Visual improvements in the Council
Chambers - $ 50,000
􀂃 Various improvements in the Police
Department Building - $ 24,200
􀂃 Building Permit Application - $ 125,000
􀂃 Annual Streets Overlay - $ 400,000
ASSET REPLACEMENT FUND
Nine vehicles are expected to be replaced in this
year’s budget for a total amount of $ 378,970 and all
other replacements amounting to $ 44,140.
The following table illustrates compliance to the
reserve requirement for the Asset Replacement
Fund pursuant to the Town’s fiscal policy:
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Projected working
capital reserved for
asset replacement
$ 1,980,075
$ 2,053,551
$ 1,985,386
Reserve
requirements @
20% of asset
$ 662,652
$ 701,452
$ 756,852
ENTERPRISE FUNDS – WATER AND SEWER
OPERATIONS
2006/ 07 Operating Budget
The adopted budgets for the enterprise operations
as reflected in the table below, basically maintain the
same level of operations from the previous year:
Summarized below are the operations’ adopted
budgets for FY 2006/ 07, debt service coverage, and
compliance to the Town’s reserve requirements:
Water
Sewer
Combined
Operations
OPERATIONS
Revenues $ 6,954,923 $ 6,004,268 $ 12,959,191
Expenses 7,493,757 5,896,353 13,390,110
Change in net
assets ( GAAP
BASIS)
( 538,834)
107,915
( 430,919)
Beginning net
assets
18,920,270
11,656,947
30,577,217
Ending net assets $ 18,381,436 $ 11,764,862 $ 30,146,298
Excess of
revenues and
other sources
over ( under)
expenditures and
other uses
( BUDGETARY
BASIS)
$ 452,464
$ 786,617
$ 1,239,081
DEBT SERVICE
Expenses before
debt service and
excluding
depreciation
$ 5,659,685
$ 3,908,587
$ 9,568,272
Revenues avail-able
for debt
service
$ 1,295,238
$ 2,095,681
$ 3,390,919
Debt Service $ 612,393 $ 1,096,405 $ 1,708,798
Coverage $ 2.12 $ 1.91 $ 1.98
RESERVES
Projected Working
Capital
$ 10,477,502
$ 4,841,406
$ 15,318,908
Reserve
Requirement
$ 1,300,492
$ 1,043,530
$ 2,344,022
Water and Sewer Capital Improvement Plan
A $ 12 million debt in bonds was issued in April 2006
to continue the system’s capital improvement
program. The proceeds will fund the following
capital improvement plan:
2006/ 07 2007/ 08 2008/ 09
Water $ 2,150,000 $ 1,650,000 $ 2,400,000
Wastewater 1,900,000 1,650,000 1,840,000
Storm Drain 325,000 201,000
TOTAL $ 4,050,000 $ 3,625,000 $ 4,441,000
Consistent with the Town’s practices, the variable
debt was swapped into a synthetic fixed rate of
3.507% for the 30- year term of the bond.
The Town was assigned the high credit ratings of
AA+ by Fitch and AA by Standard & Poor’s for the
new issue and affirmed the same high ratings for the
Town’s older bond issues.
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 Thomas M. Kasten
Term ends December 2008
Vice- Mayor Catherine Mullooly
Term ends December 2008
Council Member John J. Fannon
Term ends December 2006
Council Member Christine M. Krolik
Term ends December 2008
Council Member D. Paul Regan
Term ends December 2006
INTRODUCTION
ORGANIZATIONAL CHART AND PRINCIPAL OFFICIALS
9
FIRE FINANCE MANAGER’S POLICE PUBLIC WORKS
Paramedic General Accounting Human Resources Patrol Streets
Suppression Financial Services Records Management/ Elections Investigation Storm Drainage
Disaster Planning Utility Billing Risk Management Dispatch Water
Prevention Investments/ Cash Management PLANNING Alarm Program Wastewater
Vegetation Management Payroll Design Review Neighborhood Services Municipal Service Center
Information Technology Environmental Assessment Traffic Safety
Debt Management General Plan
Zoning
BUILDING
Permits
Inspection
CITIZENS OF
HILLSBOROUGH
CITY COUNCIL
Mayor Thomas M. Kasten
Vice- Mayor Catherine Mullooly
Council Member John J. Fannon
Council Member Christine M. Krolik
Council Member D. Paul Regan
ADVISORY BODIES
Architecture & Design Review Board
Communication Advisory Committee
Financial Advisory Committee
Hillsborough Recreation
CITY MANAGER
Anthony Constantouros
CITY ATTORNEY
Norm Book
FIRE CHIEF
Bill Reilly
FINANCE DIRECTOR
Maria Edna J. Masbad
ASSISTANT CITY
MANAGER
Katharine Leroux
POLICE CHIEF
Matthew O’Connor
PUBLIC WORKS
DIRECTOR
Martha DeBry
CITY PLANNER
Maureen Morton
CHIEF BUILDING
OFFICIAL
John Mullins
CITY CLERK
Miyuki Yokoyama
CITY ENGINEER
Cyrus Kianpour
INTRODUCTION
ADVISORY BODIES
10
ARCHITECTURE & DESIGN REVIEW BOARD
John J. Fannon, Commissioner
Walter Heyman, Chairman
Richard C. Reisman
Jennifer Werbe
George Jewett
Ward Carey
Mark Heine, Alternate
FINANCIAL ADVISORY COMMITTEE
D. Paul Regan, Commissioner
Jess “ Jay” Benton, Chairman
J. Lawrence Onderdonk
John Lockton
Al Clark
Al Royse
Josh Cooperman
Larree Renda
CITIZENS COMMUNICATION ADVISORY COMMITTEE
Catherine U. Mullooly, Commissioner
Diana Witzel, Chairwoman
Marie Chuang
Candace Lyche
Janet MacGregor
BeBe Trinkner
HILLSBOROUGH RECREATION
D, Paul Regan, Commissioner
Christine Krolik, Commissioner
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, 2005.
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 communications 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
Operational Budgeting to the Town of Hillsborough for the its budget for the fiscal year beginning July 1, 2005.
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).
Section C
BUDGET SUMMARIES
BUDGET SUMMARIES
FUND STRUCTURE AND BASIS OF BUDGETING
23
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
24
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.
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
BUDGET GRAPHICS AND SUMMARIES
25
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS
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 $ 10,476,800 $ 2,598,560 $ 13,075,360
Permits 900,600 900,600
Intergovernmental 903,840 330,000 1,233,840
Use of assets 1,209,380 84,600 $ 73,500 $ 400,000 $ 250,000 2,017,480
Service charges 1,078,614 630,000 422,600 6,554,923 5,754,268 14,440,405
All others 176,504 10,000 186,504
Total Revenues 14,745,738 3,643,160 506,100 6,954,923 6,004,268 31,854,189
EXPENDITURES:
Operations 17,132,924 100,700 25,000 5,659,685 3,908,587 26,826,896
Capital 614,200 423,110 2,150,000 1,900,000 5,087,310
Debt Service 7,174 202,702 842,774 1,309,064 2,361,714
Total Expenditures 17,140,098 714,900 650,812 8,652,459 7,117,651 34,275,920
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,593,560 614,200 3,207,760
Operating Transfers Out ( 199,200) ( 3,008,560) ( 3,207,760)
Proceeds from borrowing 2,150,000 1,900,000 4,050,000
Total Financing Sources ( Uses) 2,394,360 ( 2,394,360) 2,150,000 1,900,000 4,050,000
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
533,900
( 144,712)
452,464
786,617
1,628,269
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 423,110 2,150,000 1,900,000 4,473,110
Proceeds from borrowing ( 2,150,000) ( 1,900,000) ( 4,050,000)
Total adjustments to GAAP 269,257 ( 991,298) ( 678,702) ( 1,400,743)
CHANGE IN FUND BALANCE
533,900
124,545
( 538,834)
107,915
227,526
BEGINNING FUND BALANCE
9,114,131
356,743
4,255,690
18,920,270
11,656,947
44,303,781
ENDING FUND BALANCE
$ 9,114,131
$ 890,643
$ 4,380,235
$ 18,381,436
$ 11,764,862
$ 44,531,307
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
26
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS
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 $ 9,485,272 $ 2,585,556 $ 12,070,828
Permits 886,017 886,017
Intergovernmental 1,057,509 608,252 1,665,761
Use of assets 1,073,590 104,770 $ 70,000 $ 300,000 $ 234,940 1,783,300
Service charges 1,051,854 130,000 559,505 5,995,634 5,146,900 12,883,893
All others 157,420 600,000 10,000 767,420
Total Revenues 13,711,662 4,028,578 639,505 6,295,634 5,381,840 30,057,219
EXPENDITURES:
Operations 16,220,214 100,700 25,000 5,001,345 3,861,952 25,209,211
Capital 2,312,534 407,000 4,848,824 3,390,117 10,958,475
Debt Service 14,349 202,702 619,859 1,145,282 1,982,192
Total Expenditures 16,234,563 2,413,234 634,702 10,470,028 8,397,351 38,149,878
OTHER FINANCING SOURCES ( USES):
Operating Transfers In 2,608,556 708,395 3,316,951
Operating Transfers Out ( 85,655) ( 3,023,296) ( 188,000) ( 20,000) ( 3,316,951)
Proceeds from borrowing 4,848,824 3,101,091 7,949,915
Total Financing Sources ( Uses) 2,522,901 ( 2,314,901 4,660,824 3,081,091 7,949,915
REVENUES AND OTHER SOURCES OVER
( UNDER) EXPENDITURES AND OTHER
USES ( BUDGETARY BASIS)
( 699,557)
4,803
486,430
65,580
( 142,744)
ADJUSTMENTS TO GAAP:
Depreciation and amortization ( 290,000) ( 1,106,150) ( 967,500) ( 2,363,650)
Principal payment 187,719 175,888 324,412 688,019
Capital expenditures 407,000 4,848,824 3,390,117 8,645,941
Proceeds from borrowing ( 4,848,824 ( 3,101,091) ( 7,949,915)
Total adjustments to GAAP 304,719 ( 930,262) ( 354,062) ( 979,605)
CHANGE IN FUND BALANCE
( 699,557)
309,522
( 443,832)
( 288,482)
( 1,122,349)
BEGINNING FUND BALANCE
9,114,131
1,056,300
3,946,168
19,364,102
11,945,429
45,426,130
ENDING FUND BALANCE
$ 9,114,131
$ 356,743
$ 4,255,690
$ 18,920,270
$ 11,656,947
$ 44,303,781
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
27
COMBINED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-ALL
FUNDS
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 $ 2,540,665 $ 11,632,254
Permits 1,002,681 1,002,681
Intergovernmental 825,357 317,071 $ 480,325 1,622,753
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 84,096 2,849,733 1,854,835 5,610,935
Debt Service 14,349 202,702 568,021 1,132,106 1,917,178
Total Expenditures 14,626,615 953,945 286,319 8,273,051 5,863,511 30,003,441
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)
600,673
627,034
2,292,988
4,339,323
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 84,096 2,849,733 1,854,835 4,788,664
Proceeds from borrowing ( 2,677,225) ( 1,828,389) ( 4,505,614)
Total adjustments to GAAP ( 18,188) ( 811,945) ( 642,049) ( 1,472,182)
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
28
2006- 2007 Funding Sources - $ 35.9 Million
Taxes
36%
Enterprise service
charges
34%
Proceeds from
borrowings
11%
Use of assets
6%
All others
1%
Service charges
6%
Permits
3%
Intergovernmental
3%
COMBINED FUNDING SOURCES – ALL FUNDS
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Taxes $ 11,632,254 $ 12,070,828 $ 13,075,360 $ 13,561,660 $ 14,056,360
Permits 1,002,681 886,017 900,600 918,600 937,000
Intergovernmental 1,622,753 1,665,761 1,233,840 1,255,200 1,276,900
Use of Assets 1,548,519 1,783,300 2,017,480 1,978,955 1,904,194
Service Charges:
Governmental 2,032,235 1,741,359 2,131,214 1,940,271 1,901,674
Enterprise 11,679,011 11,142,534 12,309,191 13,297,052 14,381,923
Proceeds from borrowing 4,505,614 7,949,915 4,050,000 3,625,000 4,441,000
All others 319,697 767,420 186,504 279,487 236,546
TOTAL $ 34,342,764 $ 38,007,134 $ 35,904,189 $ 36,856,225 $ 39,135,597
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
29
2006- 2007 Expenditures by Type - $ 34.3 Million
Capital
15%
Debt Service
7%
Operations
78%
COMBINED EXPENDITURES BY TYPE – ALL FUNDS
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Operating $ 22,475,328 $ 25,209,211 $ 26,826,896 $ 28,048,759 $ 29,503,826
Capital 5,610,935 10,958,475 5,087,310 4,749,000 5,713,000
Debt Service 1,917,178 1,982,192 2,361,714 2,124,511 2,336,146
TOTAL $ 30,003,441 $ 38,149,878 $ 34,275,920 $ 34,922,270 $ 37,552,972
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
30
2006- 2007 Operating Expenditures by Function - $ 26.9 Million
Public Safety
48%
Public Utilities
36%
Streets
5%
Leisure & Social
Services
3%
General Government
3%
Community
Development
5%
COMBINED OPERATING EXPENDITURES BY FUNCTION – ALL FUNDS
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Public Safety $ 10,737,971 $ 12,041,696 $ 12,728,218 $ 13,330,356 $ 14,026,109
Public Utilities 7,731,867 8,863,297 9,568,272 9,968,961 10,481,886
Streets 1,354,455 1,444,320 1,386,278 1,468,559 1,538,088
Leisure & Social Activities 737,116 768,812 798,200 816,750 850,250
Community Development 1,201,736 1,315,096 1,418,691 1,474,292 1,532,811
General Government 712,183 775,990 927,237 989,841 1,074,682
TOTAL $ 22,475,328 $ 25,209,211 $ 26,826,896 $ 28,048,759 $ 29,503,826
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
31
2006- 2007 Operating Expenditures by Object - $ 26.9 Million
Personnel Services
64%
Contract Services
20%
Materials & Services
14%
Transfers to Internal
Service
2%
COMBINED OPERATING EXPENDITURES BY OBJECT – ALL FUNDS
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Personnel Services $ 14,070,696 $ 16,084,130 $ 17,339,644 $ 18,306,484 $ 19,359,726
Contract Services 4,715,659 4,798,605 5,263,980 5,552,506 5,865,019
Materials & Services 2,917,483 3,766,971 3,775,672 3,991,469 4,143,281
Transfers to Internal Service 771,490 559,505 447,600 198,300 135,800
TOTAL $ 22,475,328 $ 25,209,211 $ 26,826,896 $ 28,048,759 $ 29,503,826
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
32
2006- 2007 Total Capital Expenditures by Function - $ 5.1 Million
Public Utilities
82%
Streets
10%
Community
Development
3%
Public Safety
3%
General Government
2%
COMBINED CAPITAL EXPENDITURES BY FUNCTION – ALL FUNDS
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Public Safety $ 5,541 $ 290,100 $ 163,310 $ 105,000 $ 175,000
Public Utilities 4,788,664 8,370,941 4,210,000 3,705,000 4,461,000
Streets 654,361 976,673 508,000 890,000 940,000
Leisure & Social Activities 883,852
Community Development 137,352 129,000 2,000 90,000
General Government 25,017 436,909 77,000 47,000 47,000
TOTAL $ 5,610,935 $ 10,958,475 $ 5,087,310 $ 4,749,000 $ 5,713,000
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
33
2006- 2007 Total Debt Service Expenditures by Function - $ 2.4 Million
Public Safety
9%
Public Utilities
91%
General Government
0%
COMBINED DEBT SERVICE EXPENDITURES BY FUNCTION – ALL FUNDS
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Public Safety $ 202,702 $ 202,702 $ 202,702
Public Utilities 1,700,127 1,765,141 2,151,838 $ 2,124,511 $ 2,336,146
General Government 14,349 14,349 7,174
TOTAL $ 1,917,178 $ 1,982,192 $ 2,361,714 $ 2,124,511 $ 2,336,146
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
34
2006- 07 Funded Positions by Function - 111.75 FTE
Public Safety
59%
Public Utilities
16%
Streets
6%
Community
Development
6%
General Government
13%
AUTHORIZED REGULAR POSITIONS BY FUNCTION – ALL FUNDS
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Public Safety 63.75 64.75 65.75 65.75 65.75
Public Utilities 18.00 18.00 18.00 18.00 18.00
Streets 7.00 7.00 7.00 7.00 7.00
Community Development 7.00 7.00 7.00 7.00 7.00
General Government 12.00 14.00 14.00 14.00 14.00
TOTAL FUNDED POSITIONS BY FUNCTION 107.75 110.75 111.75 111.75 111.75
Public Safety 3.00 2.00 1.00 1.00 1.00
General Government 1.00
TOTAL UNFUNDED POSITIONS BY FUNCTION 4.00 2.00 1.00 1.00 1.00
TOTAL AUTHORIZED POSITIONS 111.75 112.75 112.75 112.75 112.75
*
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
35
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 2006/ 07 – ADOPTED BUDGET
GOVERNMENTAL:
General Fund $ 14,745,738 $ 17,140,098 $ 2,394,360 $ 9,114,131 $ 9,114,131
Special Revenue
Funds:
Public Safety Special
Tax Fund
2,368,560
( 2,368,560)
Gas Tax Fund 230,500 10,000 ( 225,000) ( 4,500) 11,870 7,370
Measure “ A” Fund 371,000 5,200 ( 400,000) ( 34,200) 34,706 506
Police Grants Fund 100,500 85,500 ( 15,000) 158,689 158,689
Capital Projects Fund 572,600 614,200 614,200 572,600 151,478 724,078
PROPRIETARY:
Internal Service Fund 506,100 650,812 $ 269,257 124,545 4,255,690 4,380,235
Enterprise Funds:
Water Fund 6,954,923 8,652,459 2,150,000 ( 991,298) ( 538,834) 18,920,270 18,381,436
Sewer Fund 5,381,840 8,397,351 3,081,091 ( 678,702) 107,915 11,656,947 11,764,862
GRAND TOTAL $ 31,854,189 $ 34,275,920 $ 4,050,000 ($ 1,400,743) $ 227,526 $ 44,303,781 $ 44,531,307
FISCAL YEAR 2005/ 06 – REVISED BUDGET
GOVERNMENTAL:
General Fund $ 13,711,662 $ 16,234,563 $ 2,522,901 $ 9,114,131 $ 9,114,131
Special Revenue Funds:
Public Safety Special
Tax Fund
2,358,556
( 2,358,556)
Gas Tax Fund 225,400 10,000 ( 225,000) ( 9,600) 21,470 11,870
Measure “ A” Fund 358,000 5,200 ( 425,000) ( 72,200) 106,906 34,706
Police Grants Fund 104,460 85,500 ( 14,740) 4,220 154,469 158,689
Capital Projects Fund 982,162 2,312,534 708,395 ( 621,977) 773,455 151,478
PROPRIETARY:
Internal Service Fund 639,505 634,702 $ 304,719 309,522 3,946,168 4,255,690
Enterprise Funds:
Water Fund 6,295,634 10,470,028 4,660,824 ( 930,262) ( 443,832) 19,364,102 18,920,270
Sewer Fund 5,381,840 8,397,351 3,081,091 ( 354,062) ( 288,482) 11,945,429 11,656,947
GRAND TOTAL $ 30,057,219 $ 38,149,878 $ 7,949,915 ($ 979,605) ($ 1,122,349) $ 45,426,130 $ 44,303,781
FISCAL YEAR 2004/ 05 – ACTUAL
GOVERNMENTAL:
General Fund $ 13,326,620 $ 14,626,615 $ 2,678,692 $ 1,378,697 $ 7,735,434 $ 9,114,131
Special Revenue Funds:
Public Safety Special
Tax Fund
2,328,692
( 2,328,692)
Gas Tax Fund 218,548 11,935 ( 200,000) 6,613 14,857 21,470
Measure “ A” Fund 359,910 6,548 ( 550,000) ( 196,638) 303,544 106,906
Police Grants Fund 105,462 113,191 ( 7,729) 162,198 154,469
Capital Projects Fund 59,956 822,271 400,000 ( 362,315) 1,135,770 773,455
PROPRIETARY:
Internal Service Fund 886,992 286,319 ($ 18,188) 582,485 3,363,683 3,946,168
Enterprise Funds:
Water Fund 6,222,860 8,273,051 2,677,225 ( 811,945) ( 184,911) 19,549,013 19,364,102
Sewer Fund 6,328,110 5,863,511 1,828,389 ( 642,049) 1,650,939 10,294,490 11,945,429
GRAND TOTAL $ 29,837,150 $ 30,003,441 $ 4,505,614 ($ 1,472,182) $ 2,867,141 $ 42,558,989 $ 45,426,130
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
36
SUMMARY OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE –
GENERAL FUND
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
REVENUES AND OTHER SOURCES BY TYPE:
Taxes $ 9,091,589 $ 9,485,272 $ 10,476,800 $ 10,958,100 $ 11,447,800
Permits 1,002,681 886,017 900,600 918,600 937,000
Intergovernmental 825,357 1,057,509 903,840 920,200 936,900
Use of assets 1,016,188 1,073,590 1,209,380 1,267,180 1,258,560
Service charges 1,120,255 1,051,854 1,078,614 1,101,971 1,125,874
All others 270,550 157,420 176,504 269,487 226,546
Operating transfers 2,678,692 2,608,556 2,593,560 2,543,560 2,543,560
Total Revenues 16,005,312 16,320,218 17,339,298 17,979,098 18,476,240
EXPENDITURES AND OTHER USES BY
DEPARTMENT:
City Council 36,220 44,026 49,180 54,052 74,680
City Manager 334,207 405,658 482,971 497,394 522,517
City Attorney 96,170 98,706 104,956 105,193 104,001
Finance 260,414 272,504 322,304 333,202 348,484
General Government 792,699 828,812 860,200 880,750 916,250
Police 5,333,407 5,964,859 6,289,728 6,598,051 6,961,087
Fire 5,235,790 5,961,437 6,315,190 6,582,805 6,913,522
Planning 325,459 353,750 433,336 442,050 533,433
Building 876,277 961,346 1,110,355 1,032,242 1,079,378
Streets 1,335,972 1,429,120 1,371,078 1,453,359 1,522,888
Total Expenditures 14,626,615 16,320,218 17,339,298 17,979,098 18,976,240
EXCESS ( SHORTFALL) OF REVENUES AND
OTHER SOURCES OVER ( UNDER)
EXPENDITURES AND OTHER USES
( BUDGETARY BASIS)
1,378,697
( 500,000)
BEGINNING FUND BALANCE 7,735,434 9,114,131 9,114,131 9,114,131 9,114,131
ENDING FUND BALANCE $ 9,114,131 $ 9,114,131 $ 9,114,131 $ 9,114,131 $ 8,614,131
RECOMMENDED RESERVES –
30% OF OPERATING EXPENDITURES
$ 4,387,985
$ 4,896,065
$ 5,201,789
$ 5,393,729
$ 5,692,872
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
37
2006- 2007 General Fund Expenditures by Function - $ 17.3 Million
Public Safety
72%
Streets
8%
Leisure & Social
Services
5%
Community
Development
9%
General Government
6%
GENERAL FUND EXPENDITURES BY FUNCTION
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Public Safety
Streets
Leisure & Social Activities
Community Development
General Government
$ 10,624,780
1,335,972
737,116
1,201,736
727,011
$ 11,986,296
1,429,120
768,812
1,315,096
820,894
$ 12,666,918
1,371,078
798,200
1,543,691
959,411
$ 13,244,856
1,453,359
816,750
1,474,292
989,841
$ 13,940,609
1,522,888
850,250
1,612,811
1,049,682
TOTAL $ 14,626,615 $ 16,320,218 $ 17,339,298 $ 17,979,098 $ 18,976,240
BUDGET SUMMARIES
BUDGET GRAPHICS AND SUMMARIES
38
2006- 2007 General Fund Expenditures by Object - $ 17.3 Million
Reimbursements from
Other Funds - ( 12%)
Contract Services - 9%
Personnel Services -
89%
Transfers to Internal
Service - 2%
Transfers to Capital
Projects - 1%
Materials & Services -
11%
-$ 4,000 -$ 2,000 $ 0 $ 2,000 $ 4,000 $ 6,000 $ 8,000 $ 10,000 $ 12,000 $ 14,000 $ 16,000 $ 18,000
Thousands
GENERAL FUND EXPENDITURES BY OBJECT
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
Personnel Services $ 12,495,242 $ 14,255,028 $ 15,298,747 $ 16,151,917 $ 17,083,514
Contract Services 1,646,309 1,493,312 1,607,000 1,642,200 1,686,015
Materials & Services 1,365,583 1,688,115 1,903,337 2,046,388 2,180,812
Charges/( Credits) – Other Programs ( 1,574,629) ( 1,684,017) ( 2,020,586) ( 2,079,707) ( 2,184,901)
Transfers to Internal Service 694,110 482,125 351,600 193,300 130,800
Transfer to Capital Projects 85,655 199,200 25,000 80,000
TOTAL $ 14,626,615 $ 16,320,218 $ 17,339,298 $ 17,979,098 $ 18,976,240
Section D
OPERATING PROGRAMS
OPERATING PROGRAMS
EXPENDITURES BY FUNCTION AND BY DEPARTMENT
39
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
PUBLIC SAFETY
Police Protection $ 5,502,181 $ 6,080,259 $ 6,413,028 $ 6,747,551 $ 7,112,587
Fire Protection 5,235,790 5,961,437 6,315,190 6,582,805 6,913,522
Total Public Safety 10,737,971 12,041,696 12,728,218 13,330,356 14,026,109
PUBLIC UTILITIES
Water Distribution 4,855,297 5,001,345 5,659,685 5,985,982 6,196,697
Wastewater Collection 2,876,570 3,861,952 3,908,587 3,982,979 4,285,189
Total Public Utilities 7,731,867 8,863,297 9,568,272 9,968,961 10,481,886
STREETS 1,354,455 1,444,320 1,386,278 1,468,559 1,538,088
LEISURE & SOCIAL ACTIVITIES 737,116 768,812 798,200 816,750 850,250
COMMUNITY DEVELOPMENT
Planning 325,459 353,750 433,336 442,050 453,433
Building 876,277 961,346 985,355 1,032,242 1,079,378
Total Community Development 1,201,736 1,315,096 1,418,691 1,474,292 1,532,811
GENERAL GOVERNMENT
Legislative & Policy 36,220 44,026 49,180 54,052 74,680
City Administration 334,207 405,658 482,971 497,394 522,517
Public Works Administration
Legal Services 96,170 98,706 104,956 105,193 104,001
Finance 260,414 272,504 322,304 358,202 348,484
General Services ( 14,828) ( 44,904) ( 32,174) ( 25,000) 25,000
Total General Government 712,183 775,990 927,237 989,841 1,074,682
TOTAL OPERATING
EXPENDITURES
$ 22,475,328
$ 25,209,211
$ 26,826,896
$ 28,048,759
$ 29,503,826
OPERATING PROGRAMS
SUMMARY EXPENDITURES BY OBJECT – ALL FUNDS COMBINED
40
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
PERSONNEL SERVICES
Salaries and Wages
Salaries – Regular $ 8,629,654 $ 9,310,799 $ 9,910,600 $ 10,399,993 $ 10,913,734
Salaries – Temporary 241,695 217,000 218,500 219,000 221,000
Overtime 693,064 500,250 553,050 571,940 591,642
Total Salaries and Wages 9,564,413 10,028,049 10,682,150 11,190,933 11,726,376
Benefits
Retirement 1,698,707 2,559,502 2,809,052 3,030,529 3,269,660
Social Security/ Medicare 357,135 338,754 370,540 399,347 428,525
Health and Other Insurance 1,096,060 1,469,046 1,542,579 1,664,402 1,795,939
Retirees’ Health Insurance 521,883 651,160 658,550 710,904 767,439
Workers Compensation 435,260 546,410 738,857 775,705 814,394
All Others 397,238 491,209 537,916 534,664 557,393
Total Benefits 4,506,283 6,056,081 6,657,494 7,115,551 7,633,350
TOTAL PERSONNEL SERVICES 14,070,696 16,084,130 17,339,644 18,306,484 19,359,726
CONTRACT SERVICES 4,715,659 4,798,605 5,263,980 5,552,506 5,865,019
MATERIALS & SERVICES 2,917,483 3,766,971 3,775,672 3,991,469 4,143,281
TRANSFERS TO INTERNAL
SERVICE
771,490
559,505
447,600
198,300
135,800
TOTAL OPERATING
EXPENDITURES
$ 22,475,328
$ 25,209,211
$ 26,826,896
$ 28,048,759
$ 29,503,826
OPERATING PROGRAMS
SUMMARY EXPENDITURES BY OBJECT – GENERAL FUND
41
Actual
2004/ 05
Revised
Budget
2005/ 06
Adopted
Budget
2006/ 07
Preliminary
Budget
2007/ 08
Preliminary
Budget
2008/ 09
PERSONNEL SERVICES
Salaries and Wages
Salaries – Regular $ 7,711,009 $ 8,272,443 $ 8,763,762 $ 9,195,813 $ 9,649,345
Salaries – Temporary 170,296 132,000 128,500 129,000 131,000
Overtime 631,748 480,250 492,050 510,940 530,642
Total Salaries and Wages 8,513,053 8,884,693 9,384,312 9,835,753 10,310,987
Benefits
Retirement 1,534,816 2,311,438 2,521,288 2,719,744 2,934,012
Social Security/ Medicare 275,197 263,502 287,687 309,865 331,885
Health and Other Insurance 924,489 1,219,713 1,312,124 1,415,510 1,527,136
Retirees’ Health Insurance 472,235 590,060 597,030 644,463 695,683
Workers Compensation 395,028 494,413 660,095 693,005 727,559
All Others 380,424 491,209 536,211 533,577 556,252
Total Benefits 3,982,189 5,370,335 5,914,435 6,316,164 6,772,527
TOTAL PERSONNEL SERVICES 12,495,242 14,255,028 15,298,747 16,151,917 17,083,514
CONTRACT SERVICES 1,646,309 1,493,312 1,607,000 1,642,200 1,686,015
MATERIALS & SERVICES 1,365,583 1,688,115 1,903,337 2,046,388 2,180,812
CREDITS FROM OTHER
PROGRAMS
( 1,574,629) ( 1,684,017) ( 2,020,586) ( 2,079,707) ( 2,184,901)
TRANSFERS TO INTERNAL
SERVICE
694,110
482,125
351,600
193,300
130,800
TRANSFERS TO CAPITAL
PROJECTS
85,655
199,200
25,000
80,000
TOTAL OPERATING
EXPENDITURES
$ 14,626,615
$ 16,320,218
$ 17,339,298
$ 17,979,098
$ 18,976,240
PUBLIC SAFETY
OPERATION: Police
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grants Fund, Internal Service Fund
42
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
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 4,402,398 $ 5,142,479 $ 5,551,947 $ 5,864,501 $ 6,209,684
Contract Services 55,583 60,000 62,000 64,000 66,000
Materials & Services 613,650 714,680 799,081 819,050 836,903
Transfers to Internal Service 430,550 163,100
Total $ 5,502,181 $ 6,080,259 $ 6,413,028 $ 6,747,551 $ 7,112,587
DESCRIPTION
The department works to ensure the safety and welfare of the Town residents and their property. This goal is
achieved through a dynamic combination of proactive patrol, investigations, crime prevention, community
education and other interactions. The department is broken down into two divisions:
􀂃 Administrative Services Division provides support to the Operations by ensuring the availability and
continued maintenance of supplies and equipment, such as vehicles, weapons and radios, and the
dispatching of officers to calls for service. It is responsible for training, recruitment and retention of
personnel. The Administrative Captain also assists in both external and internal investigations, court
filings, evidence handling and acts as liaison to other law enforcement agencies.
􀂃 Operations Division consists of front line 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- ours, Mutual Aid in surrounding areas and
other multi- jurisdictional safety programs. They also provide a School Resource Officer to schools and
conduct various school programs and activities.
STAFFING SUMMARY
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Police Chief 1 1 1 1 1
Police Captain 2 2 2 2 2
Police Lieutenant *
Police Sergeant 4 4 4 4 4
Police Corporal 4 4 4 4 4
Police Officers * 13 14 15 15 15
Communications Officers 4 4 4 4 4
PUBLIC SAFETY
OPERATION: Police
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grants Fund, Internal Service Fund
43
STAFFING SUMMARY
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Records Supervisor 1 1 1 1 1
Police Services Technician 2 2 2 2 2
Code Enforcement Officer 1 1 1 1 1
Executive Assistant 1 1 1 1 1
Total 33 34 35 35 35
* Total authorized positions in the department are 36. To help balance the budget, the Police Lieutenant
position has been left unfilled since FY 2003/ 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.
SIGNIFICANT PROGRAM CHANGE
This year’s budget resumed full funding for two patrol officers that were cut back in the previous years as fully
discussed above.
Chief of Police
ADMINISTRATIVE SERVICES
Police Captain
PATROL/ OPERATIONS
Police Captain
COMMUNICATIONS
Dispatchers ( 4)
Records
Supervisor
Executive
Assistant
Police Lieutenant
( Vacant)
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
( Volunteer)
Code Enforcement Officer
Police Service Technicians ( 2)
PUBLIC SAFETY
OPERATION: Police
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grants Fund, Internal Service Fund
44
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 equipments and services ( City Goal 4).
􀂃 Seek to replace and update equipments 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
and police training ( 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 improve 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).
PRODUCTIVITY MEASURES 2004/ 05 2005/ 06 2006/ 07
Total calls for service 7,120 7,264 7,294
Response time 4: 27 4: 56 4: 51
Arrests – Felony Adult 18 16 18
Arrests – Felony Juvenile 0 0 0
Arrests – Total Adult 68 80 82
Arrests – Total Juvenile 14 28 32
Accidents – Injury 61 67 68
Citations issued 1,054 1,014 1,062
Crimes – Residential Burglaries 8 14 15
Crimes – Identity Theft 18 11 19
Crimes – Stolen Vehicles 3 9 10
Crimes – Domestic Violence 15 12 16
Crimes – Child Abuse 17 11 18
Crimes – Elder/ Dependent Adult Abuse 7 1 8
Crimes – Drunk Driving ( Arrests) 11 8 12
Crimes – Sexual Assault Investigations 4 3 4
Alarms – Activations 182 169 185
Total Reports Taken 613 528 631
City Ordinance Violations – Cases 60 80 104
City Ordinance Violations – Citations 5 6 8
PRIOR PERIOD’S MAJOR ACCOMPLISHMENTS
􀂃 Continued to hold the lowest crime rate 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).
PUBLIC SAFETY
OPERATION: Police
DEPARTMENT: Police, General Government
FUNDS: General Fund, Police Grants Fund, Internal Service Fund
45
􀂃 Secured grants which support and enhance equipment acquisitions for police personnel ( City Goals 2,4, and 8).
􀂃 Accessed departmental training and equipment support from region- wide grants funding ( 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 ( City Goals 2
and 5).
􀂃 Fully participated in the 2005 County- wide Gang Task Force to disrupt and dismantle area criminal street
gang activity ( City Goals 2 and 6).
􀂃 Created and started the Peninsula Rangemasters Group, a highly specialized cadre of firearms instructors
covering the San Mateo County ( City Goals 5 and 8).
􀂃 Implemented and distributed two “ more of less than lethal” options for patrol, a new versatile collapsible baton
and the most up- to- date version of the Taser ( City Goal 8).
􀂃 Fully participated in the County data interoperability “ ThinkStream” project with other county agencies ( City
Goal 6).
PUBLIC SAFETY
OPERATION: Fire
DEPARTMENT: Fire, General Government
FUNDS: General Fund
46
MISSION
The Central County Fire Department is dedicated to enhancing the quality of life of the citizens and
visitors in our communities by protecting their lives, property and the environment through emergency
mitigation, fire prevention, community outreach and public education.
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 4,789,959 $ 5,344,138 $ 5,494,515 $ 5,815,005 $ 6,155,213
Materials & Services 326,761 484,599 560,675 607,800 658,309
Charges/( Credits) – Other
Programs
( 25,000)
( 25,000)
Transfers to Internal Service 144,070 157,700 260,000 160,000 100,000
Total $ 5,235,790 $ 5,961,437 $ 6,315,190 $ 6,582,805 $ 6,913,522
DESCRIPTION
The department protects lives, property and the environment from fire and exposure to hazardous
materials, provides pre- hospital emergency medical care, offers programs which prepare our citizens for
emergencies and provides non- emergency services, including fire prevention and related code
enforcement to the Town residents.
In response to one of the city goals of working cooperatively with other agencies to provide cost- effective
and other positive services to the Town ( City Goals 4 and 6), on April 20, 2004, the Town of Hillsborough and
the City of Burlingame approved a Joint Powers Agreement for fire combined services in which except for
certain items, operational costs will be shared 40%- 60% respectively.
Above program costs represent 40% city share of the Central County Fire Department combined program
costs in serving the fire protection and environmental safety needs of the Town of Hillsborough and the
City of Burlingame.
STAFFING SUMMARY*
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Fire Chief 1 1 1 1 1
Deputy Fire Chief 1 1 1 1 1
Division Chief 2 2 2 2 2
Fire Marshal 1 1 1 1 1
Battalion Chief 3 3 3 3 3
Fire Captain 21 21 18 18 18
Firefighter/ Paramedic 42 42 45 45 45
Fire Inspector 2 2 2 2 2
Administrative Secretary 1 1 1 1 1
Secretary 2.25 2.25 1.25 1.25 1.25
Total 76.25 76.25 75.25 75.25 75.25
PUBLIC SAFETY
OPERATION: Fire
DEPARTMENT: Fire, General Government
FUNDS: General Fund
47
* This summary comprises the combined services of the Town of Hillsborough and
City of Burlingame.
CENTRAL COUNTY FIRE DEPARTMENT
( COMBINED FIRED SERVICES – CITY OF BURLINGAME AND TOWN OF HILLSOBOROUGH)
SIGNIFICANT CHANGE
None
KEY PLANS FOR THE NEXT PERIOD
􀂃 Expand the in- house, video- based training program with equipment purchased through grant funds
( City Goals 4 and 8).
Fire Chief
Deputy Fire Chief
Administrative
Secretary
Fire Marshal Division Chiefs ( 2) Battalion Chiefs ( 3)
Captains ( 18)
Fire Inspectors ( 2)
Secretary (. 75) Secretary (. 5)
Paramedics ( 27)
Firefighters ( 18)
PUBLIC SAFETY
OPERATION: Fire
DEPARTMENT: Fire, General Government
FUNDS: General Fund
48
􀂃 Develop a Vegetation Management Plan for Burlingame, Hillsborough and San Mateo, which
encompasses the new state regulations ( City Goals 2, 5 and 6).
􀂃 Research and implement a new staffing/ payroll program to consolidate payrolls in 2007 ( City Goals 4
and 6).
􀂃 Expand disaster training programs for both Burlingame and Hillsborough by providing quarterly
information seminars for residents and response/ mitigation training to city staff ( City Goals 2, 5 and 8).
􀂃 Implement the Emergency Notification System for employee and citizen contact as part of a
countywide program ( City Goals 2 and 6).
􀂃 Provide necessary office space for staff to work towards consolidation of the offices into one location
( City Goals 3 and 6).
􀂃 Adopt/ rewrite ordinances to meet the State’s adoption of the 2006 International Codes ( City Goal 2).
PRODUCTIVITY MEASURES ( COMBINED SERVICES) 2005/ 06
Medical responses 2,499
Fire suppression responses 162
Hazardous materials responses 263
Other responses 1,483
Fire and life- safety inspections 1,197
Building plan review 220
Development plan review
Hillsborough 30
Burlingame 250
Juvenile fire education activities ( number of children) 1,500
Adult fire education activities ( number of adults) 377
Fire and arson investigations 25
Underground storage tank modifications 1
Special events inspections 48
EMPLOYEE TRAINING
TB Tests 70
EMT recertification 37
Paramedic recertification 30
Training hours completed 1,700
Square feet of fire stations maintained 32,000
Citizens given public outreach programs on fire safety and accident prevention 377
City employees trained in city- wide disaster drills 180
General public trained for disaster response 55
Fire flow test performed 118
Car Seat Inspections 51
Training programs conducted 45
SCHOOL PROGRAMS
Junior Fire Marshal Picnic ( Number of children) 185
Fund raising events conducted by off- duty firefighters 3
PUBLIC SAFETY
OPERATION: Fire
DEPARTMENT: Fire, General Government
FUNDS: General Fund
49
PRIOR PERIOD’S MAJOR ACCOMPLISHMENTS
􀂃 Equipped Rescue 33 as a Special Operations rescue unit through grant funds ( City Goals 2, 3 and 4).
􀂃 Sent six personnel to New Orleans, Louisiana to assist with Hurricane Katrina disaster efforts ( FEMA
reimbursed) ( City Goals 4 and 7).
􀂃 Acquired donated ambulance to support Police SWAT activities with our tactical medics ( City Goal 4,
and 8).
􀂃 Began a shared training program with San Bruno, Millbrae and San Mateo Fire Departments ( City
Goals 6 and 8).
􀂃 Sent two personnel to Emmitsburg, Maryland for specialized disaster mitigation training ( City Goals 2
and 6).
􀂃 On- going efforts to support the successful merger through our second year ( City Goals 4 and 6).
PUBLIC UTILITIES
OPERATION: Water
DEPARTMENT: Public Works
FUNDS: Water Fund, Internal Service Fund
50
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 985,994 $ 1,110,864 $ 1,285,170 $ 1,357,466 $ 1,434,403
Contract Services 1,994,205 1,653,293 1,911,980 2,083,806 2,161,909
Materials & Services 964,189 1,245,358 1,144,699 1,235,224 1,224,037
Charges ( Credits) – Other
Programs
881,869
962,790
1,266,836
1,306,486
1,373,348
Transfer to Internal Service 29,040 29,040 51,000 3,000 3,000
Total $ 4,855,297 $ 5,001,345 $ 5,659,685 $ 5,985,982 $ 6,196,697
DESCRIPTION
The Town operates and maintains a water distribution system to serve its residents and other water
users. It is a complex system with varying topography requiring 16 separate pressure zones. The San
Francisco Water Department ( SFWD) wholesales treated water to the Town from its Hetch- Hetchy
system. Water is delivered through 8 water meter locations from the SFWD’s 42 and 60- inch service
mains. From these metered connections, the Town pumps and distributes water through approximately
97 miles of transmission and distribution lines, 15 pump stations, and 11 storage tank locations.
Together with the sewer and streets operations, administration for the operations and long- term planning
for design, repair and maintenance of the water systems are the responsibilities of the Public Works
Director, who is assisted by a contract City Engineer. The Administrative Division is discussed in details
under the General Government- Public Works Administration Section presented on page of this budget
document. Program costs from the Administrative Division and other departments providing support
services are allocated to this operation based on a cost allocation program included in Appendix B of this
document.
The capital projects undertaken by the department are fully discussed in the Capital Improvement Plan
( CIP) section of this budget document.
STAFFING SUMMARY
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Assistant Superintendent 1 1 1 1 1
Supervisor 2 2 2 2
Water Quality Technician 1 1 1 1 1
Lead Maintenance Worker 2 2 2 2 2
Maintenance Workers 7 5 5 5 5
Total 11 11 11 11 11
PUBLIC UTILITIES
OPERATION: Water
DEPARTMENT: Public Works
FUNDS: Water Fund, Internal Service Fund
51
SIGNIFICANT PROGRAM CHANGE
Because of the impact of the capital program on operations, staff requested to reorganize to allow the
Assistant Superintendent to assume a larger role in the management and inspection of water capital
projects. Two maintenance workers positions were reclassified to working supervisors to assist in the
day- to- day operations. The water enterprise is broken down into two distinct sets of duties: Operations
focuses on meter reading, leak detection, main and meter repairs, security, responding to resident
inquiries and installing new or upgraded service connections; Water Quality administers the Supervisory
Control and Data Acquisition ( SCADA) system, organize the unidirectional flushing program, collect and
test samples, perform hydrant maintenance, repairs and flow testing and complete reports to the
California Department of Health Services.
Wholesale water costs are based on dramatically decreased water consumption ( 20% less from FY
2003/ 04 level) and the latest available rate information from the Town’s sole water source. It is
anticipated that these rates could change during the budget year depending on various factors.
KEY PLANS FOR THE NEXT PERIOD
􀂃 Administer water conservation programs which may include water audits and reimbursements for
smart irrigation controllers ( City Goals 4 and 5).
􀂃 Complete the consolidation of Major Hayes and Vista water zones ( City Goal 4).
􀂃 Continue negotiations with California Water Company for emergency water supply tie- ins ( City Goals 2
and 4).
􀂃 Complete design, bid and award project to improve water supply and fire suppression abilities in
Skyfarm and Tournament pressure zones ( City Goals 2 and 3).
Public Works
Administration
( Refer to General Government)
Assistant
Superintendent
Supervisors
( Quality- 1/ Operations- 1)
Lead Maintenance Workers
( Quality- 1/ Operations- 1)
Water Quality
Technician
Maintenance Workers- 5
PUBLIC UTILITIES
OPERATION: Water
DEPARTMENT: Public Works
FUNDS: Water Fund, Internal Service Fund
52
􀂃 Continue to manage the uncertainty of the wholesale water costs from the Town’s main water source
– the San Francisco Hetch- Hetchy system ( City Goal 4).
PRODUCTIVITY MEASURES 2004/ 05 2005/ 06 2006/ 07
Water purchases [ 1 CCF = 748 gals] 1,630,593 1,628,171 1,603,000
Water main breaks 14 12 10
Fire hydrants, new 24 22
Fire hydrants, replaced 1 19
Fire hydrants, repaired 6 4 4
Miles of water main 97 97 97
Valve repairs 1 1 1
New valves installed 108 57
Water meters read ( per average 2- month reading cycle) 4,204 4,207 4,220
New water meters installed 8 10 12
2- inch water meter upgrades 6 8 12
Number of Certified Water Distribution Operators D- 1 1 1 0
Number of Certified Water Distribution Operators D- 2 5 6 3
Number of Certified Water Distribution Operators D- 3 0 0 4
Number of Certified Water Distribution Operators D- 4 1 1 1
Water mains replaced ( miles) 2.8 2.7
Average hours needed to read meters ( per month) 90 90
Number of washing machine rebates 92 83
Number of after hours call- outs 145
PUBLIC UTILITIES
OPERATION: Wastewater
DEPARTMENT: Public Works
FUND: Wastewater Fund, Internal Service Fund
53
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 589,460 $ 718,238 $ 755,727 $ 797,101 $ 841,809
Contract Services 1,075,145 1,652,000 1,745,000 1,826,500 2,017,095
Materials & Services 470,865 722,147 609,110 584,157 612,732
Charges ( Credits) – Other
Programs
692,760
721,227
753,750
773,221
811,553
Transfers to Internal Service 48,340 48,340 45,000 2,000 2,000
Total $ 2,876,570 $ 3,861,952 $ 3,908,587 $ 3,982,979 $ 4,285,189
DESCRIPTION
The Town’s wastewater collection system consists of approximately 94 miles of pipes ranging in size from
4 to 18 inches in diameter. This system provides for a population of approximately 10,965 contained in
an area of approximately 6.25 square miles. Wastewater from the area north of Hayne Road and West
Santa Inez Avenue is transported by gravity pipelines to the Town limits where it is routed to the City of
Burlingame wastewater treatment plant. Wastewater from the remaining areas is transported by gravity
pipelines to the City of San Mateo wastewater treatment plant. Town has wastewater contracts with both
cities that have been in place for approximately 50 years and by their terms remain in effect until
amended or terminated.
Together with the water and streets operations, administration for the operations and long- term planning
for design, repair and maintenance of the wastewater systems are the responsibilities of the Public Works
Director, who is assisted by a contract City Engineer. The Administrative Division is discussed in details
under the General Government- Public Works Administration Section presented on page of this budget
document. Program costs from the Administrative Division and other departments providing support
services are allocated to this operation based on a cost allocation program included in Appendix B of this
document.
The capital projects undertaken by the department are fully discussed in the Capital Improvement Plan
( CIP) section of this budget document.
STAFFING SUMMARY
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Supervisor 1 1 1 1 1
Lead Maintenance Worker 1 1 1 1 1
Maintenance Workers 5 5 5 5 5
Total 7 7 7 7 7
PUBLIC UTILITIES
OPERATION: Wastewater
DEPARTMENT: Public Works
FUND: Wastewater Fund, Internal Service Fund
54
SIGNIFICANT PROGRAM CHANGE
Both the Cities of San Mateo and Burlingame have initiated capital improvement programs to expand
their respective wastewater treatment facilities. These improvement programs have been financed
through bonds which currently do not mature until 2028 for the City of San Mateo and 2018 for the City of
Burlingame. The two cities use the payments received from the Town under their respective contracts to
support a portion of their respective bonded indebtedness and maintenance and operation costs.
KEY PLANS FOR THE NEXT PERIOD
􀂃 Complete inspections of residences for compliance of the Backwater ordinance ( City Goal 2).
􀂃 Continue to maintain the sanitary sewer system in an efficient manner to prevent sanitary sewer
system overspills ( City Goals 2 and 3).
􀂃 Update Sanitary Sewer Master Plan per Regional Water Quality Control Board Standards ( City Goal 2).
PRODUCTIVITY MEASURES 2004/ 05 2005/ 06 2006/ 07
Sanitary wastewater overflows over 100 gals 8 8
Sanitary wastewater overflows under 100 gals 10 6
Miles of wastewater main on chemical root control 4.7 6.6
Feet of storm pipes lined ( in feet) 220 585
Feet of storm pipes replaced ( in feet) 525
Public Works
Administration
( Refer to General Government)
Supervisor
Lead Maintenance Worker
Maintenance Workers ( 5)
PUBLIC UTILITIES
OPERATION: Wastewater
DEPARTMENT: Public Works
FUND: Wastewater Fund, Internal Service Fund
55
PRIOR PERIOD’S MAJOR ACCOMPLISHMENTS
􀂃 Expanded root foaming program to minimize the effects of root intrusion n wastewater pipes and
reduce the maintenance burden ( City Goal 3).
􀂃 Administered wastewater backflow protection device reimbursement program and expanded
inspection program to assist residents with identifying need for devices ( City Goals 2 and 5).
􀂃 Acquired wastewater system management software ( ICOM3) to enhance data collection and
reporting that will serve a significant role to implement a Sanitary Sewer Master Plan ( SSMP) as
mandated by the State Water Resources Control Board ( City Goal 8).
STREETS
OPERATION: Streets
DEPARTMENT: Public Works
FUND: General Fund, Gas Tax Fund, Measure “ A” Fund, Internal Service Fund
56
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 764,870 $ 814,843 $ 868,836 $ 916,522 $ 967,550
Contract Services 26,427 50,000 55,000 55,000 55,000
Materials & Services 263,158 221,858 235,528 256,508 260,577
Charges ( Credits) – Other
Programs
300,000
269,419
226,914
240,529
254,961
Transfers to Internal Service 88,200
Total $ 1,354,455 $ 1,444,320 $ 1,386,278 $ 1,468,559 $ 1,538,088
DESCRIPTION
This program is responsible for the repair and maintenance of approximately 82 miles of paved streets
within the Town limits, and the maintenance of related storm drain facilities. Program goals are to have
smooth, safe and clean street pavement and to have an efficient traffic flow.
Together with the sewer and water operations, administration for the operations and long- term planning
for design, repair and maintenance of the street systems are the responsibilities of the Public Works
Director, who is assisted by a contract City Engineer. The Administrative Division is discussed in details
under the General Government- Public Works Administration Section presented on page of this budget
document. Program costs from the Administrative Division and other departments providing support
services are allocated to this operation based on a cost allocation program included in Appendix B of this
document.
The capital projects undertaken by the department are fully discussed in the Capital Improvement Plan
( CIP) section of this budget document.
STAFFING SUMMARY
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Supervisor 1 1 1 1 1
Lead Maintenance Worker 1 1 1 1 1
Maintenance Craftsworker 1 1 1 1 1
Maintenance Workers 4 4 4 4 4
Total 7 7 7 7 7
STREETS
OPERATION: Streets
DEPARTMENT: Public Works
FUND: General Fund, Gas Tax Fund, Measure “ A” Fund, Internal Service Fund
57
SIGNIFICANT CHANGE
City Council has approved a construction vehicle impact fee at 0.83% of reported valuation to be
collected at the issuance of building permits. This is estimated to bring in $ 500,000 per year that would
bring the annual funding commitment for streets capital improvements to approximately $ 1 million a year.
This is expected to substantively improve the overall condition of streets in the coming years.
KEY PLANS FOR THE NEXT PERIOD
􀂃 To respond to an increased funding level for streets improvement that will improve the City’s
Pavement Condition Index ( PCI) currently identified as fair from the last assessment ( City Goal 3).
􀂃 Enhance storm drain facilities to prevent temporary flooding conditions on street surfaces ( City Goal 3).
PRODUCTIVITY MEASURES 2004/ 05 2005/ 06 2006/ 07
Miles of streets resurfaced 2.63 14 11
PRIOR PERIOD’S MAJOR ACCOMPLISHMENTS
􀂃 Completed 2005 street project resurfacing approximately 14 miles of roadways ( City Goal 3).
􀂃 Remodeled Municipal Service Center offices and interior of sewer garage ( City Goal 3).
Public Works
Administration
( Refer to General Government)
Supervisor
Lead Maintenance Worker
Maintenance Workers ( 4)
Maintenance
Craftsworker
LEISURE & SOCIAL ACTIVITIES
OPERATION: Leisure & Social Activities
DEPARTMENT: General Government
FUND: General Fund
58
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Contract Services $ 709,411 $ 730,312 $ 755,000 $ 780,000 $ 806,000
Materials & Services 27,705 38,500 43,200 36,750 44,250
Total $ 737,116 $ 768,812 $ 798,200 $ 816,750 $ 850,250
DESCRIPTION
This operation primarily accounts for various Town services including library and recreation services,
quarterly newsletter and other community relations activities. The Town contracts with the Cities of
Burlingame and San Mateo to offer library programs to its residents. Recreation programs are offered
through the Hillsborough School District.
KEY PLANS FOR THE NEXT PERIOD
􀂃 Explore funding alternatives for the library services ( City Goals 4 and 5).
􀂃 Continue providing funding for recreation and sports programs to the Town’s young population ( City
Goal 5).
􀂃 Continue providing informative quarterly newsletter to the Town residents ( City Goal 5).
COMMUNITY DEVELOPMENT
OPERATION: Planning
DEPARTMENT: City Manager’s Office
FUND: General Fund, Internal Service Fund
59
MISSION
To ensure that new development meets community standards and to ensure compliance with local, state
and federal development, land use and environmental regulations.
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 253,731 $ 279,749 $ 357,175 $ 364,219 $ 371,402
Contract Services 18,198 20,000 22,000 24,200 27,000
Materials & Services 40,810 48,601 50,661 52,031 53,431
Transfer to Internal Service 12,720 5,400 3,500 1,600 1,600
Total $ 325,459 $ 353,750 $ 433,336 $ 442,050 $ 453,433
DESCRIPTION
The Planning Division is responsible for four key functions: Zoning, Environmental Assessment, Long-
Term Planning and Design Review. These functions can be generally described as follows:
􀂃 Zoning includes the administration of the zoning regulations and other development- related
regulations of the Hillsborough Municipal Code and providing zoning information to homeowners
and developers.
􀂃 Environmental Assessment involves the preparation of environmental documents as required
for private and Town projects consistent with provisions of the California Environmental Quality
Act.
􀂃 Long- Term Planning involves the preparation, maintenance and implementation of the Town’s
General Plan.
􀂃 Design Review involves proving staff services to the Town’s Architecture and Design Review
Board ( ADRB), processing applications, conducting public hearings and implementing the Town’s
Design Guidelines.
This function reports to the Assistant City Manager.
STAFFING SUMMARY
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
City Planner 1 1 1 1 1
Assistant/ Associate Planner 1 1 1 1 1
Total 2 2 2 2 2
COMMUNITY DEVELOPMENT
OPERATION: Planning
DEPARTMENT: City Manager’s Office
FUND: General Fund, Internal Service Fund
60
SIGNIFICANT PROGRAM CHANGE
The Assistant Planner position was reclassified to an Associate Planner.
KEY PLANS FOR THE NEXT PERIOD
􀂃 Continue to process zoning and ADRB applications efficiently, processing as many as possible
administratively; explore ways to enhance the current processes ( City Goals 1 and 8).
􀂃 Provide clear, current and precise zoning information, handouts and materials. Increase the use of
the Town’s enhanced website as an information source ( City Goals 1 and 8).
􀂃 Work with the City Attorney and City Engineer to complete remaining portions of the Municipal Code
update ( City Goals 2 and 8).
􀂃 Continue to prepare environmental assessments for private and Town projects ( City Goals 1 and 2).
􀂃 Continue to implement the policies in the Housing Element, especially by encouraging the
development of second units, and the General Plan ( City Goal 1).
􀂃 Complete the General Plan Implementation Plan and the Zoning Study ( City Goal 1).
PRODUCTIVITY MEASURES 2004/ 05 2005/ 06 2006/ 07
City Council- Related Items
Number of agenda items prepared and presented 14 13 13
ADRB appeals 4 0 0
8,000+ square feet houses 0 2 1
Variances processed 0 0 0
Design Guidelines ( adoption, amendment, etc.) 1 1 1
General Plan ( updates, amendments, reports, etc.) 1 1 1
Conceptual plans for subdivisions 1 0 1
Special studies 1 1 2
Environmental Impact Reports ( EIR) 0 0 1
Negative Declarations 2 1 1
ADRB- Related Items
Number of agenda items prepared and presented 104 77 60
Number of ADRB meetings 15 13 13
Assistant City Manager
City Planner
Associate Planner
COMMUNITY DEVELOPMENT
OPERATION: Planning
DEPARTMENT: City Manager’s Office
FUND: General Fund, Internal Service Fund
61
PRODUCTIVITY MEASURES ( continued) 2004/ 05 2005/ 06 2006/ 07
ADRB packets prepared 30 26 26
New houses approved
Associated with teardowns 11 10 7
Total 17 14 8
Preliminary review by ADRB 41 21 20
Administrative design review applications
Received 327 307 300
Approved 196 193 180
Second units approved 16 24 20
Miscellaneous
Emergency tree removal requests processed 38 40 40
Documents notarized 38 30
PRIOR PERIOD’S MAJOR ACCOMPLISHMENTS
􀂃 In 2005, as a result of the Second Unit Ordinance, incentives and outreach programs, 24 second
units were approved, resulting in a total of 45 units approved since the Housing Element was adopted
( City Goal 1).
􀂃 In 2005, 277 Architecture and Design Review applications were processed, of which 214 ( 77%) were
processed administratively by the Planning staff ( City Goal 1).
􀂃 The Nueva School Master Plan Amendment, including new “ green building” facilities, was processed
and approved and the Town’s first “ green building’ single family home was approved ( City Goals 1 and
5).
􀂃 An implementation plan for the Town’s 2005 General Plan and a Zoning study were initiated ( City Goal
1).
􀂃 Research was completed into new roofing materials and products from three different manufacturers
were added to the “ Pre- Approved Roofing Materials List” to provide more roofing options for
homeowners ( City Goals 1, 2 and 5).
􀂃 Town’s website has been utilized and maintained as a source for current information, public notices,
application forms and information, and meeting agendas and minutes ( City Goals 5 and 8).
􀂃 Staff worked successfully with the City Attorney’s Office and Code Enforcement Division on Code
amendments and several Code violations ( City Goals 1 and 2).
􀂃 Staff prepared 3 environmental assessments, reviewed and commented on assessments prepared by
other agencies, and developed and issued to the private schools Permits to Operate ( City Goals 1 and
2).
COMMUNITY DEVELOPMENT
OPERATION: Building
DEPARTMENT: City Manager’s Office
FUNDS: General Fund, Internal Service Fund
62
MISSION
To provide for permitting of land use and building projects, code enforcement and the orderly growth and
development of the city.
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 559,146 $ 672,168 $ 681,209 $ 721,514 $ 762,149
Contract Services 221,575 195,000 199,500 200,500 206,515
Materials & Services 56,166 83,278 96,546 99,528 102,514
Transfer to Internal Service 39,390 10,900 8,100 10,700 8,200
Total $ 876,277 $ 961,346 $ 985,355 $ 1,032,242 $ 1,079,378
DESCRIPTION
The primary purpose of the division is to provide a minimum standard to safeguard life, health and
property and regulate and control the design, construction and quality of materials, use and occupancy,
location and maintenance of all buildings and structures within the Town limits.
In addition to above, this division also performs and assists process of the following:
􀂃 Public Assistance – problem solving of complaints and concerns presented by the public.
􀂃 Recycling – providing information and related services to allow the public to recycle materials
from construction.
􀂃 Planning – plan checking and clerical processing of planning applications including enforcement
of condition of approval.
􀂃 Engineering - clerical processing of engineering permits including plan checking.
􀂃 Public Works – issuance of public works permits and related functions.
􀂃 Code Enforcement – monitors and code enforcement violations including attending Code
Enforcement hearings.
This function reports to the Assistant City Manager.
STAFFING SUMMARY
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Chief Building Official 1 1 1 1 1
Senior Building Inspector/ Plan Checker 1 1 1 1 1
Building Inspector 1 1 1 1 1
Secretary 1 1 1 1 1
Service Clerk 1 1 1 1 1
Total 5 5 5 5 5
COMMUNITY DEVELOPMENT
OPERATION: Building
DEPARTMENT: City Manager’s Office
FUNDS: General Fund, Internal Service Fund
63
SIGNIFICANT PROGRAM CHANGE
The department is procuring a permitting application to enhance productivity. The project is fully
discussed in the Capital Improvement Plan ( CIP) section of this budget document.
KEY PLANS FOR THE NEXT PERIOD
􀂃 Replace retiring staff member with someone dedicated to building safety and customer service ( City
Goals 2, 6, 7 and 8).
􀂃 Explore the market for permitting software programs and implement one ( City Goals 6, 7 and 8).
PRODUCTIVITY MEASURES 2004/ 05 2005/ 06 2006/ 07
Total permits issued 2,507 2,485 2,361
Projects ( 2 or more permits issued for the same property) 776 748 711
Building permits 739 695 660
Electrical permits 419 427 405
Mechanical permits 282 264 250
Plumbing permits 771 882 838
Grading permits 39 46 44
Encroachment permits 139 193 183
Stop works 71 85 80
New homes 19 14 13
Second units 11 18 17
Assistant City
Manager
Chief Building
Official
Senior Building
Inspector/ Plan Checker
Service Clerk
Secretary
Building Inspector
COMMUNITY DEVELOPMENT
OPERATION: Building
DEPARTMENT: City Manager’s Office
FUNDS: General Fund, Internal Service Fund
64
PRIOR PERIOD’S MAJOR ACCOMPLISHMENTS
􀂃 Successfully adopted and implemented the construction management ordinance ( City Goal 1).
􀂃 Continued to provide a high level of customer service ( City Goals 5 and 8).
􀂃 Seamlessly transitioned front counter staff after retirement of key person ( City Goal 8).
GENERAL GOVERNMENT
OPERATION: Legislative & Policy
DEPARTMENT: City Council
FUND: General Fund
65
MISSION
To serve the needs of all members of the community with a responsive, professional, courteous and
timely local government and to cost effectively provide for their safety and well- being.
.
OPERATIONAL COSTS
Actual
2004/ 05
Revised
2005/ 06
Adopted
2006/ 07
Preliminary
2007/ 08
Preliminary
2008/ 09
Personnel Services $ 46,890 $ 63,360 $ 64,530 $ 69,692 $ 75,267
Materials & Services 20,675 20,500 19,600 20,550 36,850
Charges/( Credits) - Other Programs