TABLE OF CONTENTS
Introduction
City Manager’s Proposed Budget Transmittal Letter ------------------------------------------------------------------------ 1
Organizational Chart ------------------------------------------------------------------------------------------------------------------ 3
Board and Commissions-------------------------------------------------------------------------------------------------------------- 4
Government Finance Officers Association Distinguished Budget Presentation Award for Budget Period
Beginning July 1, 2001 ------------------------------------------------------------------------------------------------------------- 5
California Society of Municipal Finance Officers Certificate of Award for Excellence in Operational
Budgeting 2002- 2004 --------------------------------------------------------------------------------------------------------------- 6
Executive Summary ------------------------------------------------------------------------------------------------------------------- 7
Community Profile and Statistics -------------------------------------------------------------------------------------------------- 18
Budget Process, Fund Structure and Budget Basis -------------------------------------------------------------------------- 20
Debt Summary -------------------------------------------------------------------------------------------------------------------------- 22
Budget Summary
Summary of Revenues, Expenditures and Fund Balances ( All Funds) -
Fiscal Year 2002 - 2007--------------------------------------------------------------------------------------------------------- 25
Summary of Revenues, Expenditures and Fund Balances by Fund –
Fiscal Year 2004- 2005 --------------------------------------------------------------------------------------------------------- 26
Fiscal Year 2005- 2006 --------------------------------------------------------------------------------------------------------- 27
Fiscal Year 2006- 2007 --------------------------------------------------------------------------------------------------------- 28
Full- Time Positions Summary ------------------------------------------------------------------------------------------------------ 29
General Fund Extended Financial Forecast 2003- 2012 --------------------------------------------------------------------- 31
General Fund
Summary of Revenues, Expenditures and Fund Balance ------------------------------------------------------------------ 33
General Fund Revenue Details ---------------------------------------------------------------------------------------------------- 34
Consolidated Schedule of Expenditures by Object Code ------------------------------------------------------------------- 36
Departmental Organization, Responsibilities, Accomplishments & Objectives
City Council ----------------------------------------------------------------------------------------------------------------------- 39
City Manager --------------------------------------------------------------------------------------------------------------------- 41
City Attorney ---------------------------------------------------------------------------------------------------------------------- 45
Finance ---------------------------------------------------------------------------------------------------------------------------- 47
General Government ----------------------------------------------------------------------------------------------------------- 51
Police ------------------------------------------------------------------------------------------------------------------------------- 52
Fire--------------------------------------------------------------------------------------------------------------------------- ------- 56
Planning --------------------------------------------------------------------------------------------------------------------------- 61
Building ---------------------------------------------------------------------------------------------------------------------------- 65
Public Works Department ----------------------------------------------------------------------------------------------------- 68
Public Works Administration ------------------------------------------------------------------------------------------- 71
Streets ----------------------------------------------------------------------------------------------------------------------- 72
Special Revenue Funds
Public Safety Special Tax Fund --------------------------------------------------------------------------------------------- 73
Gas Tax Fund -------------------------------------------------------------------------------------------------------------------- 74
Measure “ A” Tax Fund --------------------------------------------------------------------------------------------------------- 75
Police Grants Fund ------------------------------------------------------------------------------------------------------------- 76
Capital Projects Fund
Capital Projects Fund ---------------------------------------------------------------------------------------------------------- 77
Capital Projects Status Report - Projected at June 30, 2004 ------------------------------------------------------- 78
Summary of Requests for Capital Improvement ------------------------------------------------------------------------ 79
Individual Capital Improvement Requests -------------------------------------------------------------------------------- 80
i
Internal Service – Replacement Fund
Replacement Fund ------------------------------------------------------------------------------------------------------------- 88
Vehicle Replacement Schedule --------------------------------------------------------------------------------------------- 89
Enterprise Funds
Water Fund ----------------------------------------------------------------------------------------------------------------------- 90
Sewer Fund ----------------------------------------------------------------------------------------------------------------------- 92
Enterprise Funds Capital Improvement Plan ---------------------------------------------------------------------------- 94
Glossary of Budget Terms ----------------------------------------------------------------------------------------------------------------- 95
Appendices
Appendix A – Budget and Fiscal Policies
Appendix B – Schedule of Fees and Charges
Appendix C – Resolutions
Budget Adoption - Fiscal Year 2004- 2005
Fees and Charges - Fiscal Year 2004- 2005
Appropriations Limit - Fiscal Year 2004- 2005
Appendix D – Fiscal Year 2004- 2005 Cost Allocation Plan
ii
INTRODUCTION
toward improved PERS investments, the Town’s plan has been to institute the new retirement benefits in more
favorable economic conditions.
Staff Teamwork – The Town staff functions well together and, unlike many cities, are not territorial in the
management of their budgets. A hallmark of this culture is the handling of year- end budget surpluses. Most
agencies spend all budgeted amounts by the end of the fiscal year, regardless of changing needs.
Hillsborough’s departments expend only the necessary amounts that are required to continue to provide
excellent services. It is not unusual to have unexpended funds at the close of the fiscal year in Hillsborough.
Financial Advisory Committee – The Town uniquely benefits from a group of professional residents that
donate their time to oversee and advise the Council and staff on financial matters. The Committee brings a
high level of expertise and a private sector viewpoint. They serve as an outstanding sounding board for Town
financial matters that adds thoroughness to future planning.
Major Budget Changes
Details of the combination of cost savings, revenue enhancements, balancing measures and revenues and expenditures
assumptions are fully discussed in the Executive Summary of this budget document. The primary changes to the
Operating Budget from the previous year are listed below:
• 911 Fee – This fee reimburses the Town for the costs associated with providing emergency response
communication services to the general public.
• Finance Department Position - The new position converts 2 part- time positions to allow operational
efficiency in the Finance Department.
• Sewer Rates – A 5% increase in sewer rates to comply with the debt service coverage requirement is
recommended.
Budget Recommendations
1. Adopt the Operating and Capital Budget for Fiscal Year 2004/ 05. The recommended budget is in balance
and incorporates all the recommendations listed above.
2. Conceptually accept the 2nd Fiscal Year ( 2005/ 06) and the 3rd Fiscal Year ( 2006/ 07) of the Operating
Budget subject to adjustments identified prior to the start of each of those respective years. The
Council would consider appropriations for the second year and third year as listed in this document with special
notations for any revenue and expenditure changes and unexpected circumstances that could alter
appropriations.
Acknowledgments
Despite the uncertainties in local government financing, the Town of Hillsborough is in sound financial health. I wanted to
thank the members of the City Council and the Financial Advisory Committee for their review of the budget issues and
documents. In addition, I wanted to thank the Department Heads, Division Heads, and support staff whose efforts made
the publication of this document possible. In particular, the Finance Director, Edna Masbad, with able assistance from the
Finance Department, has incorporated improved accounting and funding procedures that make the proposed budget
more comprehensive and accurate.
The Town of Hillsborough has been a very stable organization that has provided excellent services to the community.
Police services continue to provide a very low crime rate among mid- size cities in California; fire protection services
continue to provide a high quality of service that is sensitive to the unique terrain of the city; community services, such as
engineering, planning, building inspection, and public works provide timely and thorough results to the individual needs of
the residents and their representatives; and the courteous staff that work directly with the public who provide prompt
customer services on a daily basis. The public is served well by the women and men of this organization who take pride
in a history of providing outstanding public service.
Respectfully submitted,
Anthony Constantouros
City Manager
2
BOARD AND COMMISSIONS
ARCHITECTURE & DESIGN REVIEW BOARD
John J. Fannon – Commissioner
Richard C. Reisman, Chairman
David Luebkeman
Walter Heyman
Jennifer Werbe
George Jewett
Kathleen Benoit ( alternate)
FINANCIAL ADVISORY COMMITTEE
Charles F. Adams, Commissioner
J. Lawrence Onderdonk, Chairman
Jay Benton
John Lockton
Al Clark
Al Royse
Josh Cooperman
Larree Renda
CITIZENS COMMUNICATION ADVISORY COMMITTEE
Catherine U. Mullooly, Commissioner
Diana Witzel, Chairwoman
Christine Krolik
Janet MacGregor
Betsy Pace
BeBe Trinkner
HILLSBOROUGH RECREATION
D. Paul Regan, Commissioner
Charles F. Adams, Commissioner
4
EXECUTIVE SUMMARY
Mission
statement
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.
STRATEGIC PLANNING
Budget
planning
process
Policy
framework
and city
goals
Strategic
plan
The Town of Hillsborough’s budget planning process continues to evolve towards the ideals based on
the guidelines issued by the National Advisory Council for State and Local Budgeting.
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:
To protect neighborhoods and family environments through responsive land use planning
and quality neighborhood services.
To provide a safe community in which to live, work and play through quality neighborhood
services.
To protect the capital investment of the City in its facilities and infrastructure, and develop
new ones as necessary.
To assure the long- term financial stability of the City through an active and comprehensive
approach to financial planning.
To provide positive community experiences through the development of quality programs.
To actively participate in providing efficient inter- jurisdictional operations that focus on cost-effective
services to the community.
To provide effective representation of the City through active involvement in municipal
associations and interaction with other government entities and community organizations.
To provide an efficient work environment and promote employee excellence.
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 service delivery.
MACRO BUDGET PROCESS
Budget
mechanics
The town’s budget mechanics follow the “ Macro Budget Process”. It essentially calls for using a base
budget and showing cost increments above that base to provide complete visibility to the Council and
the community.
The base budget is the prior period’s budget less non- recurring costs covering one- time programs or
projects, capital outlay and infrastructure investments. Added to the base in increments were salary
and benefit changes, adjustments to materials and services beyond staff’s control such as utility rate
increases and increases for certain contractual services, requested one- time items for capital,
technology and infrastructure and program or service enhancements.
GENERAL FUND ( GF)
Adopted
budget for
FY 04/ 05;
preliminary
estimates
for FY 05/ 06
and FY
06/ 07
Discussed below is the GF adopted budget for fiscal year 2004- 2005 and preliminary budgets for
2005- 2006 and 2006- 2007. Traditionally, the Town develops a multiple year ( 3- year) budget but due
to the difficult financial times and uncertainties in several areas both at the local and the state level,
staff does not present a “ proposed” budget for the last two of the 3- year budget but rather submits
preliminary figures ( rough draft) intended to be starting points for future budget planning based on
updated information for these 2 fiscal years. Staff presented the budget for fiscal year 2004- 2005
only, following Council initial guidance received after a Town’s fiscal update presentation at the
beginning of the budget process.
In order to balance the GF budget with the short- term goal of no new taxes or major reductions on the
services currently provided, Council approved the following:
Revenues:
Budget
solutions –
FY 2004-
2005
Implement the general plan maintenance fee
Increase alarm monitoring fee revenues with increased subscription
Implement new engineering fees
Include an estimate of an ERAF I refund from the County of San Mateo
Total
$ 32,500
30,000
7,630
100,000
170,130
Use of Prior Year Reserves ( in lieu of implementing the 911 fee) $ 325,000
7
Expenditures:
Defer transfer to retirees’ health insurance reserve
Decrease transfer to the vehicle replacement reserves – Fire $ 128,000
Police - $ 49,000 and Building - $ 24,700
Eliminate contribution to the Streets Capital Projects
Decrease budget for professional services in Planning and Streets
Leaving vacancy for PW Superintendent position open for 8 months –
savings decrease labor allocation to the enterprise funds - $ 53,525
Share of savings from the Deputy Fire Chief position to be filled with
existing fire personnel
Total
$ 81,595
201,700
150,000
50,000
80,712
564,007
GRAND TOTAL $ 1,059,137
Additionally, the following positions left unfilled during the last fiscal year as part of cost- cutting
measures in the prior year, will remain vacant during FY 2004- 2005 at these approximate savings:
Police Lieutenant
2 Patrol Officers
Total
$ 155,000
200,000
$ 355,000
New
account
clerk
position in
Finance in
lieu of 2
part- time
positions
A new full- time position ( Account Clerk) was requested in the Finance Department to replace 2 part-time
positions. Additional net costs in the FY 2004- 2005 budget year would be $ 8,800. The
conversion allows for some stability of staffing to perform current functions and additional tasks
resulting from the implementation of new programs including alarm monitoring, enhanced
enforcement of the business license ordinance, improved collection process of water and other
receivable accounts, increased accounting processes brought on by new regulations ( GASB 34) and
the implementation of the purchase order system. It also allows better internal control for separation
of duties pursuant to recommended practices.
A balanced
GF budget
for FY 04/ 05
Summarized below is the GF adopted budget and fund balance for the FY 2004- 2005 with
comparative figures for the year before and 2 years after and a comparison to GF minimum reserves
recommended at 30% of operating budget. A detailed report can be found on page 33 of this budget
document.
Projected
Actual
2003- 2004
Adopted
2004- 2005
Preliminary
2005- 2006
Preliminary
2006- 2007
Revenues
Expenditures
Excess ( Shortfall)
One- time Transfer to Repl Fund
Beginning Fund Balance
Ending Fund Balance
$ 14,200,255
14,200,255
- 0 –
6,666,273
$ 6,666,273
$ 14,842,283
14,796,865
45,418
( 325,000)
6,666,273
$ 6,386,691
$ 14,970,678
16,241,821
( 1,271,143)
6,386,691
$ 5,115,548
$ 15,447,385
16,544,912
( 1,097,527)
5,115,548
$ 4,018,021
Minimum
level of
reserves
Recommended minimum
reserves @ 30% of operating
budget
$ 4,260,077
$ 4,439,060
$ 4,872,546
$ 4,963,474
General Fund Revenue Summary
How the
Governor’s
proposed
state budget
affects the
Town
The revenue projections reflect the Governor’s proposal for an additional shift of property taxes to the
Educational Revenue Augmentation Fund ( ERAF) dubbed as ERAF II which is estimated to be 24% of
the current ERAF shift or approximately $ 300,000 for the Town. It assumes full backfill of the Vehicle
License Fee ( VLF) discussed more fully elsewhere in this summary. Below is a summary of revenue
projections outlining the Town’s major revenues:
Projected
Actual
2003- 2004
Adopted
2004- 2005
Preliminary
2005- 2006
Preliminary
2006- 2007
Revenue
summary
Property taxes
Special public safety tax
Business license
Construction permits
Vehicle license fee
Fees and service charges
All others
Total Revenues
$ 7,441,083
2,142,590
569,128
782,576
434,963
930,790
1,899,125
$ 14,200,255
$ 7,270,606
2,185,442
580,511
806,053
645,750
1,073,482
2,280,439
$ 14,842,283
$ 7,612,406
2,228,556
592,121
830,236
678,038
1,094,900
1,934,421
$ 14,970,678
$ 7,950,926
2,228,556
603,963
855,143
711,940
1,115,001
1,981,856
$ 15,447,385
8
Below is a graph presentation of the 2004- 05 GF revenue breakdown:
WHERE THE MONEY COMES FROM - GENERAL
FUND REVENUES
Property taxes
50%
All others
15%
Special public safety tax
15%
Fees and service charges
7%
Business license
4%
Construction permits
5%
Vehicle license fee
4%
MAJOR REVENUES ANALYSIS
Property Tax Revenue
A cautious
5% annual
growth for
the secured
property tax
Governor’s
proposed
ERAF II shift
Property tax revenue is the Town’s largest discretionary GF revenue source. Average secured
property tax growth in the last 9 years was 8.4% and projections for the next three years reflect a
cautious 5% average annual growth, assuming no additional shifts to the Educational Augmentation
Revenue Fund ( ERAF). Unsecured property tax which is approximately $ 690,000 annually has
remained stable in the last three years and is projected to remain flat in the next three years.
The Governor’s proposed budget contained a provision for an additional shift ( ERAF II). Another line
has been added to the graph below to reflect the level of revenues projected using the assumption of
a 24% increase to existing ERAF transfers. A local government financing reform package negotiated
with the Governor by local agencies includes a $ 1.3 billion shift of local government revenues in fiscal
years 2004- 05 and 2005- 06 to address the State’s budget crisis in return for a constitutional
amendment that guarantees to local governments, starting in 2006- 07, property tax revenues
generated by growth, including those from 2004- 05 and 2005- 06. This amendment will be voted on at
the coming November election.
Secured and Unsecured Property Tax Revenues
$ 0
$ 1,000
$ 2,000
$ 3,000
$ 4,000
$ 5,000
$ 6,000
$ 7,000
$ 8,000
$ 9,000
$ 10,000
94/ 95 95/ 96 96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Thousands
Property Tax w/ ERAF I w/ ERAF II
Special Police and Fire Tax
Special
Police and
Fire Tax to
reach
maximum
limits
allowed by
law in FY
The Special Police and Fire tax, a non- ad valorem tax on parcels of real property approved by the
voters on June 2, 1998, augments funding to maintain and enhance police and fire protection and
prevention services including paramedic services. The measure initially set a maximum of $ 496 and
$ 190 per improved and unimproved parcel respectively and allowed a 2% increase each year but not
to exceed 115% ($ 570 and $ 219) of the initial maximum amounts. Current revenue projections
amount to approximately $ 2.2M a year. The maximum allowed by law would be reached in FY 05/ 06.
Staff will be requesting the volunteer Citizens Financial Advisory Committee to explore the possibility
9
05/ 06. of setting new limits that will allow automatic annual CPI adjustments.
Vehicle License Fee ( VLF)
Full
“ backfill” of
VLF subsidy
expected
from the
State and an
ambitious
5% annual
growth
reflected in
adopted
budget
The VLF revenue represents approximately 5% of the Town’s GF revenues. It is a tax on the
ownership of a registered vehicle of which 81.25% is allocated to cities and counties on a population
basis. Starting in 1998, the State reduced the rate from its original 2% to 0.65%. Under the law, local
governments are “ backfilled” by the state GF for any loss of revenue due to the VLF reductions. The
law contained provisions that if state GF revenues are insufficient to fund this subsidy, then the offset
would be removed and the effective taxpayer rate would return to its 1998 level. On June 19, 2003,
the State made findings of insufficient revenues and “ pulled the trigger” to set back the rates, a move
that was repealed by the new Governor starting with the October 2003 registrations. A special
appropriation was passed to resume backfill to the local governments except for the “ 90- day backfill
gap” that resulted, payment of which is deferred to August 2006. That gap is reflected in the dip
illustrated in the graph below. The Governor’s proposed budget contains the VLF backfill for FY
04/ 05. The chart also reflects an annual growth rate of 5% for the next three years.
Vehicle License Fee ( VLF) Revenue
$ 0
$ 100
$ 200
$ 300
$ 400
$ 500
$ 600
$ 700
$ 800
95/ 96 96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Thousands
Construction Permits
A 3% annual
growth in
construction
permits is
estimated.
Construction permits, another major source of GF revenues ( 5.4% of total revenues) start to show a
positive trend during the last year after the successive plunge during the 2 years prior. It is expected
that the upward trend will continue as the economy picks up. A cautious 3% increase each year is
projected for this budget cycle. Although it is estimated that the total number of building permits issued
this year will be 12% higher than last year, this however, does not all translate to higher revenues at
that level as the type of permits have changed and consist primarily of improvements to existing
structures. The same trend is expected for the next three years.
Construction Permits Revenue
$ 0
$ 100
$ 200
$ 300
$ 400
$ 500
$ 600
$ 700
$ 800
$ 900
97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Thousands
10
Business License Fee
Business
License Fee
Revenue to
rise 2% per
year
Another major source of GF revenue is the business license fee which represents approximately 4%
of the total GF revenues. Although the Town does not allow business and commercial outfits, service
providers to the Town residents are required to pay the fee. The fee is also assessed on rental of
properties, home businesses and title insurance companies on sale of properties within the Town
limits.
Business License Fee Revenue
$ 0
$ 100
$ 200
$ 300
$ 400
$ 500
$ 600
$ 700
97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Thousands
Fees and Service Charges
To achieve our fiscal objective to diversify the Town’s revenue base and working towards the user fee
cost recovery goals, fees and service charges have been reviewed to ensure that they keep pace with
changes in the cost- of- living as well as changes in methods or levels of service. Additionally, due to
the fiscal requirements brought on by the economy as discussed throughout this summary, a new
major fee was introduced – alarm monitoring fee – in the last two years. The graph below shows the
trend of recovery level assumed by the Town since FY 99/ 00.
Fees and Service Charges
$ 0
$ 200
$ 400
$ 600
$ 800
$ 1,000
$ 1,200
99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Thousands
General Fund Expenditures Summary
Despite various challenges fully explained in the following paragraphs, the Town’s GF adopted 2004-
2005 expenditures budget rose 6% over the previous budget as summarized below:
11
Projected
Actual
2003- 2004
Adopted
2004- 2005
Preliminary
2005- 2006
Preliminary
2006- 2007
A 6%
increase in
2004- 2005
adopted
budget
General government
Public safety
Community services
Streets
Total
% of change over prior year
$ 589,063
10,273,971
1,905,923
1,431,298
$ 14,200,255
$ 733,097
10,894,619
2,087,374
1,406,775
$ 15,121,865
6%
$ 748,815
11,920,506
2,120,299
1,452,201
$ 16,241,821
9%
$ 763,514
12,139,854
2,174,271
1,467,273
$ 16,544,912
2%
The table below breaks down the 2004- 2005 expenditures by category and compares them to the
previous budget year:
Projected
Actual
2003- 2004
Adopted
2004- 2005
Increase
( Decrease)
% of
Change
Budget
breakdown
by category
Salaries and benefits:
Salaries
Retirement costs
Health & other insurances
Retired employee health
Insurance
Workers comp insurance
All others
Total salaries & benefits
Materials & Services
Grand Total
$ 7,988,772
572,976
915,587
484,500
548,571
1,238,486
11,748,892
2,451,363
$ 14,200,255
$ 8,216,754
1,657,124
1,010,457
520,900
424,794
1,655,045
13,485,074
1,636 791
$ 15,121,865
$ 227,982
1,084,148
94,870
36,400
( 123,777)
416,559
1,736,182
( 814,572)
$ 921,610
3%
189%
10%
8%
- 23%
34%
15%
- 33%
6%
COST CUTTING MEASURES EMPLOYED
Fire Combined Services with City of Burlingame
Fire
combined
services
with City of
Burlingame
In line with the city goal to participate in providing efficient inter- jurisdictional operations, on April 20,
2004, the Town approved a Joint Powers Agreement ( JPA) with the City of Burlingame for fire
combined services that provides both economic and service delivery benefits. Project negotiations
that started three years ago culminated with the approval of the JPA by both councils in April 2004.
Although a coverage area study evaluation ( pilot study) was started on October 2003, contract
implementation starts on July 2004. The combined operations effectively reduced the costs of
providing the same level of services to the residents of both cities with fewer personnel ( 13 positions
eliminated through attrition). The Town’s estimated cost savings from this activity are in excess of
$ 700,000 annually.
The General Fund Expenditures Trend graph below reflects the savings achieved by the town from
this fine example of reducing operating costs and enhancing services.
General Fund Expenditures Trend
$ 0
$ 1,000
$ 2,000
$ 3,000
$ 4,000
$ 5,000
$ 6,000
$ 7,000
01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Thousands
Police Fire Streets All others
12
Vacant Positions Remain Unfilled
3 Police
vacant
positions
unfilled
The three vacant positions ( 1 Police Lieutenant and 2 Police Officers) that were not filled in the current
year will continue to remain vacant as part of the solution to present a 2004- 2005 balanced budget.
Although there is no visible reduction of service levels, there are scheduling and administrative
inefficiencies related to working with fewer field personnel.
Other Solutions
Transfers to
replacement
reserves
deferred
In addition to various reductions in the materials and services area ( professional services, emergency
materials, etc.), the Town continues to defer or drastically reduce regular transfers to fund vehicle
replacement and the unfunded liability for retirees’ health insurance benefit.
EXPENDITURES CHALLENGES
Retirement Costs
Retirement
costs to
triple in
2004- 2005
Rates relief
expected
with recent
CALPERS
investment
yield
The General Fund annual retirement contributions will increase from $ 573,000 in 2003- 2004 to
$ 1,657,000 in 2004- 2005. The main reasons for this increase include poor market performance of the
underlying CALPERS investments for the years 2001 and 2002 that affected this year’s rates, low-levels
of contribution in the same years due to surplus positions of fund assets compared to fund
liabilities and the enhanced benefit for various labor groups. Town continues to explore options to
“ smooth” costs that would limit growth of future contribution rates.
It is anticipated that recent improvements in CALPERS investments yield ( from 3.9% in fiscal year
ending 6/ 30/ 03 to 23.3% in calendar year ending 12/ 31/ 03) should give local agencies some rates
relief, reducing the previously projected rates of 40% or more to the mid 20’ s starting in 2005- 2006.
Healthcare Costs for Active and Retired Employees
Healthcare
costs still
expected to
have double
digit annual
growth rates
The past years have seen double- digit growth rates for the City’s healthcare costs. This trend is
expected to continue over the next ten years with annual growth rates of between 8- 15 percent.
Various factors cited as causing these increases include increased prescription drugs costs, the costs
of new technologies, an aging population ( in Northern California compared to the southern part of the
state), and mergers/ financial weakness within the healthcare industry. Staff has been working on
slowing the growth in costs in this area through collective bargaining for lower retiree’s healthcare
costs for new employees.
PUBLIC FACILITIES CAPITAL IMPROVEMENT PLAN
Due to the current fiscal hard times, staff recommended a minimal level of capital improvement
projects in FY 2004- 2005:
Pump station at Police Department site
Town Hall Facilities Utilization Project
( Above 2 projects will not require new funds.
Funds will be reprogrammed from projects
that were either discontinued or had other
funding sources.)
Annual Streets Overlay
Total
$ 37,000
200,000
747,000
$ 984,000
ENTERPRISE FUNDS – WATER AND SEWER OPERATIONS
2004- 2005 Operating Budget – Water and Sewer Funds
5% rate
increase in
sewer rates
requested
The adopted budgets prepared under generally accepted accounting principles ( GAAP) basis for the
water and sewer operations basically maintain the same level of operations from the previous year.
Assumptions include a modest rate increase of the San Francisco water ( the Town’s water source).
The sewer operations do not expect a major change in the disposal costs contracted out with the
Cities of Burlingame and San Mateo.
However, the sewer operations require a 5% increase for FY 2004- 2005 to maintain the debt service
coverage and build up the fund’s reserves towards the minimum reserve level as recommended in the
Town’s fiscal policies and bond covenants.
13
Below is a summary of the adopted budgets:
Water
Sewer
Combined
Operations
Operating
budget
complies
with the
required
debt service
coverage
and
minimum
level of
reserves
Operating revenues
Operating expenses
Change in net assets
Beginning net assets
Ending net assets
Operating expenses before debt service and
excluding depreciation
Net revenues available for debt service
Total debt service
Debt service coverage
$ 6,807,900
7,345,268
( 537,368)
18,360,719
$ 17,823,351
$ 5,787,506
$ 1,020,394
$ 627,500
$ 1.63
$ 4,992,250
5,257,227
( 264,977)
9,192,616
$ 8,927,639
$ 3,509,439
$ 1,482,811
$ 1,158,800
$ 1.28
$ 11,800,150
12,602,495
( 802,345)
27,553,335
$ 26,750,990
$ 9,296,945
$ 2,503,205
$ 1,786,300
$ 1.40
Water and Sewer Capital Improvement Plan
Bond
proceeds to
fund Capital
Improve-ment
Plan
On August, 2003, the Town issued $ 15,000,000 of variable rate certificates of participation 2003
Series A to finance various water and wastewater projects, consistent with the enterprise’s ten year
capital improvement plan. Bond proceeds will fund majority of the following capital improvement plan:
04/ 05 05/ 06 06/ 07 07/ 08 08/ 09
Water
Sewer
Storm Drain
Total
$ 2,422,000
1,211,500
212,000
$ 3,845,500
$ 3,998,700
1,826,500
213,600
$ 6,038,800
$ 2,878,000
2,397,000
127,600
$ 5,402,600
$ 1,111,500
1,439,500
160,800
$ 2,711,800
$ 1,095,000
3,984,000
144,000
$ 5,223,000
LOCAL ECONOMIC INDICATORS
The following indicators providing information on current local economic activity, are used to establish
trend and assist in generating projections for the major revenues and expenditures growth:
Bay Area Consumer Price Index ( CPI)
Assessed Valuations – Secured Properties
Median Home Price
Building Permits Issued
Unemployment Rate
Bay Area Consumer Price Index ( CPI)
The CPI measures the change in the price of goods over time. The change in the index is referred to
as the rate of inflation and is frequently the basis for calculating future costs. The Bay Area CPI is
projected to grow in FY 03/ 04 by 0.9%, the lowest in more than 10 years, down from 1.9% in FY
02/ 03. California CPI went from 2.6% to 1.6%, and national CPI from 2.2% to 2.0%. Projections for
the next 2 years show a gradual climb with the Bay Area CPI projected at 1.1% in FY 05/ 06.
GENERAL CPI
Bay Area
CPI the
lowest in 10
years and
show a
gradual
climb to
1.1% in FY
05/ 06
FY
90/ 91
91/ 92
92/ 93
93/ 94
94/ 95
95/ 96
96/ 97
97/ 98
98/ 99
99/ 00
00/ 01
01/ 02
02/ 03
03/ 04*
04/ 05*
05/ 06*
Bay Area
5.0%
3.8%
3.1%
1.7%
2.0%
1.9%
3.0%
3.4%
3.6%
4.2%
5.5%
3.2%
1.9%
0.9%
0.9%
1.1%
California
5.3%
3.6%
3.2%
1.8%
1.7%
1.4%
2.3%
2.0%
2.5%
3.1%
4.3%
3.0%
2.6%
1.6%
2.6%
2.7%
U. S.
5.4%
3.2%
3.1%
2.6%
2.9%
2.7%
2.9%
1.8%
1.7%
2.9%
3.4%
1.8%
2.2%
2.0%
2.1%
2.3%
Source: FY 91 to FY 03 – Bureau of Labor Statistics;
FY 04 to FY 06 - CA Dept of Finance Projections for
CA and U. S.; Bay Area CPI – Governor’s Budget
Forecast Nov 2003
14
Assessed Valuations – Secured Properties
The Town’s assessed values for secured properties that saw percentage changes in double digits
during the fiscal years 2001 and 2002 still show a healthy growth though leveling off:
5% increase
in assessed
values for
secured
properties
Secured Properties - Assessed Values Net of Exemptions
$ 0
$ 1,000
$ 2,000
$ 3,000
$ 4,000
$ 5,000
$ 6,000
99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
Millions
Median Home Price
Median
home prices
increased
by 12.8% in
the County
The median home price in the Bay Area climbed to $ 499,000 in March 2004, with San Mateo County
increasing to $ 643,000. Prices are rising in all parts of the Bay Area, up15.2% from the previous year,
with almost similar growth rates in all counties. The number of homes sold was up 24.6% in the Bay
Area in March, 2004 compared to the same time last year. Increase in number of home sales for the
same period in San Mateo County was 9.6%. The California Association of Realtors anticipates, that
in 2004, the median price of single- family homes will continue to rise; however, the number of sales
will drop.
Median Home Price
By County
March
2003
March
2004
% of
Change
Bay Area
Alameda
Contra Costa
Santa Clara
San Mateo
San Francisco
Marin
Napa
Solano
Sonoma
$ 433,000
$ 408,000
$ 365,000
$ 480,000
$ 570,000
$ 560,000
$ 655,000
$ 415,000
$ 285,000
$ 369,000
$ 499,000
$ 470,000
$ 415,000
$ 564,000
$ 643,000
$ 649,000
$ 750,000
$ 477,000
$ 330,000
$ 433,000
15.2%
15.2%
13.7%
17.5%
12.8%
15.9%
14.5%
14.9%
15.8%
17.3%
Source: DataQuick
Median home price for the Town of Hillsborough in 2004 Qtr 1 was $ 2,200,000 up 18% from
$ 1,860,000 in 2003 ( www. reil. com).
Building Permits
Building
permits to
increase by
12% in FY
03/ 04 and
expected to
have
modest
increases in
the next 3
years
It is estimated that the number of permits issued by the end of this fiscal year will be 12% higher than
last year.
Building Permits Issued
813
972
833 817
739
697
780
-
200
400
600
800
1,000
1,200
97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04
15
Unemployment Rate
Unemploy-ment
rate
remains 5th
lowest in the
State
The latest unemployment figures show signs of leveling off. The unemployment rate in the County
averaged 5.0% in 2003; the same rate as 2002. The County’s rate remains one of the lowest in the
state ( 5th lowest).
FY San Mateo California U. S.
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2.8%
2.7%
2.6%
4.0%
5.1%
5.0%
4.7%
4.3%
3.4%
2.7%
2.4%
2.0%
1.6%
2.9%
5.0%
5.0%
5.3%
5.1%
5.8%
7.7%
9.3%
9.4%
8.6%
7.8%
7.2%
6.3%
5.9%
5.2%
4.9%
5.4%
6.7%
6.7%
5.5%
5.3%
5.6%
6.8%
7.5%
6.9%
6.1%
5.6%
5.4%
4.9%
4.5%
4.2%
4.0%
4.8%
5.8%
6.0%
Source: CA Employment Development Department
MAJOR ACCOMPLISHMENTS FOR THE PREVIOUS BUDGET CYCLE
Summarized below are some of the Town’s major accomplishments during the previous budget cycle:
Successfully merged fire services with the City of Burlingame with projected annual savings
for the Town in excess of $ 700,000.
Issued a $ 15M bond issue and refinanced $ 9.9M for the water and sewer capital
improvement program.
Completed Phase I of the Records Management Program project.
Implemented the Governmental Accounting Standards Board ( GASB) 34 to comply with
generally accepted accounting principles.
Received both GFOA and CSMFO awards for financial reporting and budgeting.
Completed the CAD/ RMS system in the Police Department.
Completed and installed the latest high technology alarm monitoring system.
Placed two new Pierce Fire Apparatus into service.
Received State certification for the Housing Element of the General Plan.
Updated the Town’s Design Guidelines.
Implemented an automated permitting system.
Placed the Supervisory Control and Data Acquisition System ( SCADA) into service
providing accurate and expanded telemetry monitoring of water and sewer facilities.
Adopted new chloramine water disinfection program.
Implemented recommendations from a Corrosion Control Study.
Completed vulnerability assessment.
Completed various water and sewer capital improvement projects.
WHAT LIES AHEAD
Continual
challenges
on salaries
and benefits
costs
An extended financial projection based on available information is presented on page 31 of this
budget document. Municipal budgets in the state will continue to be subject to a wide variety of future
legislative and initiative proposals as well as to economic uncertainty in the region – factors that could
drastically alter revenue and expenditures projections.
Like most local governments, the Town is a labor- intensive, service- driven organization with the
majority of the costs tied to labor. The salary- benefit cost segment represents approximately 87% of
the GF expenditures. Some factors that make salary and benefit cost- containment difficult include:
The statewide CalPERS pension system will soon be based on a pooling of assets and
liabilities. While this helps to spread risk, the contribution amounts could potentially be
externally determined.
Double digit growth in healthcare costs over a long period of time.
The Town is part of a larger employer marketplace and must continue to be competitive in
hiring qualified talent.
16
Unfunded Liability for ( Other) Post Employment Benefit ( OPEB)
Unfunded
liability for
post
employment
benefits
Until recently when it starts to negotiate with the labor groups for a reduced level of post employment
benefit for new hires, the Town provides postretirement health benefits, administered through
CalPERS, and other compensated absences. There currently, are 75 eligible participants receiving
the postretirement health benefits. The Town finances the plan on a pay- as- you- go basis. In July
2001, the Town started to put aside minimal amounts from the GF towards a reserve to fund this
liability. However, the planned transfers have either been trimmed or deferred altogether to help
balance the recent budgets.
The Governmental Accounting Standards Board ( GASB), the authoritative body that sets standards
for state and local governments, is developing accounting and reporting standards for post
employment benefits. The adopted standard generally would require that employers recognize the
benefits on an accrual basis ( i. e., form of compensation) as benefits are earned by employees and
that accounting for the cost be treated similar to that for pension benefits. As such, unfunded liability
for the benefit should be reflected in the books. An informal valuation done on June 30, 2000
estimates the Town’s unfunded actuarial liability for qualified employees, are in excess of $ 10M.
Employee Compensation and Benefits
The Town employees are divided into five groups for the purpose of determining salary compensation
and benefits – Public Works and Clerical, Police, Fire, Fire Administrators and the unrepresented
employees. While the Town continues to negotiate for cost containment in this area ( personnel costs
represent approximately 85% of total budget), it is guided with its policy to compensate its employees
at competitive levels.
Proposition 4 Appropriations Limit
The Town is within approximately a million of the State- defined limit and does not expect to exceed it
in the near future. It continues to closely monitor its appropriations limit and will be ready to address
the issue if it goes over the limit.
CONCLUSION
The departments take pride in being able to submit the 2004- 2005 budget that required a minimal use
of prior year reserves. However, the Town needs to explore long- term solutions for the projected
shortfalls in the ensuing years.
17
COMMUNITY PROFILE AND STATISTICS
Brief History
The Town of Hillsborough is a residential community located in San Mateo County, California and incorporated on May 5,
1910 after a popular vote of 60- 1 held on April 25, 1910. The Town initially included a series of large estates, some of
which over time, were divided into the now existing mix of large estate parcels, acreage and minimum one- half acre lots.
The Town is located west of Highway 101 and El Camino Real and east of Highway 280 within a short commute to San
Francisco and minutes from San Francisco International Airport.
Town’s Profile
The community location offers excellent weather and a geographic advantage to its residents. One of the main attractions
that Hillsborough has for home buyers is its rural charm, which is not always captured in the newer developments. The
community is well known for its trees and rural nature. It still offers its escape from the pressures of the city. In addition to
its generally quiet atmosphere, people are attracted to Hillsborough for its excellent public schools, fine police and fire
protection, public works service, and the stability that the community offers. The Town’s community based school system
receives many awards and consistently provides high scholastic achievement. There are several private schools located
in the community.
For the last 12 years, the Town of Hillsborough is consistently ranked as one of the safest cities in the nation as well as
one of the safest among cities with populations over 10,000, as reported in the Federal Bureau of Investigation ( FBI)
annual Uniform Crime Report.
On April 20, 2004, the Town of Hillsborough signed a Joint Powers Agreement with the City of Burlingame for combined
fire services providing both economic and service delivery benefits. The combined operations effectively reduced the
costs of providing the same level of services to the residents of both cities with fewer personnel ( 13 positions eliminated
through attrition). The Town’s estimated cost savings from the merge are in excess of $ 700,000 annually.
The community residents provide a commendable level of support to the municipal government and individual
departments through a number of advisory bodies, a community beautification foundation, enhanced communication
through a quarterly newsletter, an annual holiday party for the employees, and other forms of recognition. The residents
work diligently at maintaining the historical and strong family- based community values.
Land Area and Population
The Town currently has a land area of approximately 6.23 square miles and a population of 10,825. It is empowered to
levy a property tax on both real and personal property located within its boundaries. The Town has also approved a
public safety special tax designated for public safety operations and capital expenditures including paramedic and fire
automatic aid response programs, and a voter- approved ½ % sales tax designated for streets and road purposes.
Form of Governance
The Town operates under the council- manager form of government. Policy- making and legislative authority are vested in
the governing city council, which consists of a mayor, a vice- mayor and three council members. Council members are
elected to overlapping four- year terms, in even numbered years. The Council members select the Mayor and Vice- Mayor
every year. The Council is responsible among other things, for passing ordinances, adopting the budget, appointing
commission and board members and hiring the City Manager and the City Attorney. The City Manager is responsible for
carrying out the policies and ordinances of the governing council, for overseeing the day- to- day operations of the Town,
and for appointing the heads of the town departments.
18
Miscellaneous Statistics
Miles of Streets
Number of Budgeted Employees
POLICE -
Number of station
Number of sworn personnel
FIRE ( COMBINED OPERATIONS) –
Number of fire stations/ companies
Number of fire protection personnel
WATER ENTERPRISE –
Number of accounts
Average units of daily consumption
Miles of water mains
Number of water tanks and
distribution reservoir
SEWER ENTERPRISE –
Number of accounts
Miles of sewer mains
Miles of storm drain piping
LIBRARY
RECREATION
EDUCATION –
Hillsborough City School District
Private Schools
81
107.75
1
24
5 Stations/ Engine Companies/ 1 Truck Company
73
4,177
4,407
97.4
17 tanks
1 reservoir
3,892
93.79
33.22
Provided through Burlingame and San Mateo Libraries
Provided through Hillsborough Recreation Joint Power
Agreement
Elementary:
North Hillsborough Elementary
South Hillsborough Elementary
West Hillsborough Elementary
Middle School:
Crocker Middle School
Nueva Learning Center – Preschool, K – 8
Crystal Springs Uplands School – Grades 6 - 12
19
BUDGET PROCESS, FUND STRUCTURE AND BUDGET BASIS
The City Budget
The Town of Hillsborough provides a wide variety of services including police and fire protection, construction and
maintenance of streets and other infrastructure, sanitation services, delivery of water service and certain recreational
activities and other community services. Municipal services are financed through a variety of taxes, fees, charges for
services and intergovernmental subventions. In order to plan for the delivery of services and efficiently manage the
revenues that support these services, the Town adopts a financial plan.
Direction of the budget comes from many sources. The State Constitution and the Town local fiscal policy provide the
basic legal requirements and time lines for the process. Council and the Financial Advisory Committee goals and public
input provide the policy direction to respond to the needs of the community.
The Town’s fiscal year runs from July to June. Pursuant to its Fiscal and Budget Policies ( Appendix A), the Town may
adopt budgets for a term of one or more fiscal year( s). As a matter of procedure, Council conceptually approves a three-year
budget. However, the State and Town’s local policy require that prior to each fiscal year an appropriation resolution
must be adopted to authorize budgeted expenditures for the coming fiscal year.
In this budget cycle, due to the uncertainties in several areas both at the local and the state level, Council did not consider
a 3- year budget. Although 3- year budget figures are still presented, the last 2 of the 3- year cycle are preliminary figures.
Budget Process
The intent of the process is more than just budget preparation and financial presentation of revenues and expenditures
but rather the most important objective is to generate a sound operational plan to serve the residents of the community
and measure the impact of decisions projected in financial plan.
The Town’s budget is developed over a five month period, beginning in February and ending in the budget adoption in
June. The budget development is headed by the City Manager and the Finance Director together with the city’s
department heads.
Outlined below is the budget process calendar:
Month Process
February
March
April
May
June
July- Aug
Revenue projections and economic assumptions.
Departments prepare budgets; review budget and hold study
sessions; Prepare and print recommended budget.
Study Session with the Financial Advisory Committee.
Study Session with Council; Public Hearing
Council Approves Budget.
Prepare and Public Adopted Budget
Fund Accounting
Fund accounting is used both for budgeting and accounting purposes. Each fund is established for a specific purpose
and is considered a separate accounting entity.
The Town utilizes several types of funds: General, Special Revenues, Capital Project, Internal Service and Enterprise
Funds.
The general fund includes the majority of city services that include the City Council, City Administration, City Attorney,
Finance, Planning and Building Inspection, Police, Fire and Public Works.
The special revenue funds each have specific revenue sources, which are restricted to specific purposes for expenditure
by federal or state law, or by city ordinance or resolution. Special revenue funds include the Public Safety Special Tax
fund, Gas Tax Fund, Measure ” A” Tax Fund and the Police Grants Fund.
20
The city’s Capital Project Fund is funded by various sources such as grant funds, specific fees and transfers from the
General and the Special Revenue Funds.
The internal service fund provides replacement and reserves to other city departments. Included in the fund are
replacement and reserves for equipment, computer systems, vehicles, communication equipment, dispatch and
paramedic equipment and retirees health insurance costs. The fund is supported by charges and transfers from the
various funds that use the services.
The enterprise funds consist of the Water and Sewer Funds that are supported by the service charges from the users of
the systems.
Budget Basis
The Town adopts annual budgets on a basis consistent with generally accepted accounting principles for all governmental
funds except the capital projects funds, which adopt project- length budgets. The basis used for budgeting is the same as
used in accounting. Budgets are also adopted and controlled for the proprietary funds. The basis of fund accounting and
budgeting varies according to which category the fund resides.
Governmental funds, which include the General, Special Revenue and the Capital Project Fund use the modified accrual
basis of budgeting. This means that revenues are recognized when they become measurable or available while
expenditures are accounted for or recognized in the budgeting period incurred.
Proprietary funds which include the Enterprise and the Internal Service Funds, use the accrual basis of budgeting.
Revenues are recognized when they are earned and expenses are recognized when incurred. The cash basis budget in
the proprietary funds is also included for enhanced understanding and additional information.
The appropriated budget is prepared by fund, function and department. During the year, the town’s department heads
may make transfers of appropriations within a 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 Town council. The legal level of
budgetary control ( i. e., the level at which expenditures may not legally exceed appropriations is the fund level.
21
DEBT SUMMARY
OVERVIEW
The Town has traditionally financed public facilities and major equipments on a pay- as- you- go basis. During the last 10
years, however, the Town faced a great need to maintain an aging water and sewer infrastructure. Starting in the late
90s, Town started a series of bond issues to finance this need.
The Town of Hillsborough’s debt policy is to maintain the ability to provide high quality essential city services in a cost
effective manner. The Town’s Council and management weigh this goal against maintaining the ability to borrow at the
lowest possible rates. Thus, the Town uses the following guidelines before financing one- time capital improvement
projects only, with long- term debt:
Management conservatively projects the revenue sources to pay off the debt.
The financing of the improvement will not exceed its useful life
The benefits of the improvement must out- weight its costs including the interest costs of financing.
DEBT SUMMARY
Pursuant to the Town’s debt policy, general purpose annual debt service payments should generally not exceed 10% of
the General Fund revenues and in no case should they exceed 15%. Currently, it has two types of debts – capital lease
obligations arising from the acquisition of various copiers and the 2 fire engines acquired in fiscal year 2002- 2003 and
certificates of participations issued to finance improvements to the water and sewer infrastructure payable solely from the
Town- operated enterprise operations. The table below presents a summary of the Town debt:
Estimated Debt Outstanding – Year- end 2004 and 2005
Governmental activities:
Capital leases
Business- type activities:
Certificates of participation
Total outstanding debt
2004
$ 596,857
29,200,000
$ 29,796,857
2005
$ 404,358
28,700,000
$ 29,104,358
The table below summarizes the debt service requirements for 2004- 2005 through 2006- 6007:
04/ 05 05/ 06 06/ 07
Governmental activities:
Principal
Interest
Total
Business- type activities:
Principal
Interest
Total
Grand Total
$ 192,499
24,550
217,049
500,000
1,286,300
1,786,300
$ 2,003,349
$ 201,213
15,837
217,050
500,000
1,265,000
1,765,000
$ 1,982,050
$ 203,146
6,729
209,875
500,000
1,245,000
1,745,000
$ 1,954,875
The Town’s established wealthy residential base, strong utility maintenance records, financial flexibility for its enterprise
operations and manageable forecast rate increases all contribute to the Town’s maintaining favorable credit ratings. The
Town’s August 2003 $ 15M Variable Rate Certificates of Participation issue to finance additional acquisition, construction
of installation of certain water and sewer systems improvements was awarded an AA rating from Standard & Poor’s and
AA+ from Fitch.
DEBT MANAGEMENT POLICIES
The Town’s Budget and Fiscal Policies ( Appendix “ A”) presented in this budget document include a comprehensive debt
management policy that will continue to guide the Town’s management in its financing decisions.
22
FUTURE DEBT PLANNING
The Town does not expect to incur additional indebtedness for governmental activities. It will complete most capital
improvements for general government operations on a pay- as- you- go basis. It would have completed a great portion of
the enterprise infrastructure capital needs with the issuance of the approximately $ 30M certificates of participation. Staff
is currently assessing future improvements needs of the water and sewer systems.
CONCLUSION
The town’s council and management have set policies to be sure that the town meets its debt payments in a timely
manner. The policies state that new debt will be issued only after careful consideration. The Town’s overall financial
health is positive and through its policies Town emphasizes continued effort toward maintaining the Town’s financial
performance.
23
BUDGET SUMMARY
S
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES ( ALL FUNDS)
FISCAL YEAR 2002- 2007
Projected Adopted Preliminary Preliminary
Actual Actual Actual Budget Budget Budget
2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 REVENUES
2 Taxes $ 9,892,532 $ 10,012,028 $ 10,819,437 $ 10,722,802$ 1 1,133,707 $ 11,499,096
3 Permits 820,094 726,212 923,198 1,016,053 1 ,046,536 1,077,932
4 Fines & forfeitures 29,380 35,024 29,401 29,500 2 5,500 25,500
5 Intergovernmental revenues 1,084,530 1,095,918 1,096,683 1,036,550 1 ,069,238 1,103,140
6 Use of assets 1,173,086 822,428 1,069,049 1,198,696 1 ,225,597 1,251,516
7 Service charges 1 0,270,081 11,037,728 13,010,368 12,959,832 1 4,115,695 14,712,996
8 Miscellaneous 65,635 727,609 52,410 237,550 4 7,200 47,200
9 Total Revenues 2 3,335,338 24,456,947 27,000,546 27,200,983 2 8,663,473 29,717,380
10
11 EXPENDITURES ( EXPENSES)
12 Operations 2 0,348,548 22,590,252 25,665,995 26,502,558 2 8,517,379 29,102,975
13 Capital 1,918,666 1,128,852 731,869 999,000 4 70,000 470,000
14 Interest expense - 507,152 1,342,767 1,310,550 1 ,280,837 1,251,729
15 Total 2 2,267,214 24,226,256 27,740,631 28,812,108 3 0,268,216 30,824,704
16
17 OPERATING TRANSFERS
18 In 5,377,423 3,100,094 3,007,590 3,540,442 2 ,908,556 2,908,556
19 Out ( 5,377,423) ( 3,100,094) ( 3,007,590) ( 3,540,442) ( 2,908,556) ( 2,908,556)
20 Total - - - - - -
21
22 EXCESS ( SHORTFALL) 1,068,124 230,691 ( 740,085) ( 1,611,125) ( 1,604,743) ( 1,107,324)
23
24 BEGINNING FUND BALANCE/ NET ASSET 3 8,052,886 39,121,010 39,797,351 39,057,266 3 7,446,141 35,841,398
25 PRIOR PERIOD ADJUSTMENT - 445,650
26 ENDING FUND BALANCE/ NET ASSETS $ 3 9,121,010 $ 39,797,351 $ 39,057,266 $ 37,446,141 $ 3 5,841,398 $ 34,734,074
25
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES BY FUND
FISCAL YEAR 2004- 2005
General Public Measure Police Capital Internal
Fund Safety Gas Tax " A" Grants Projects Service Water Sewer Total
REVENUES
Taxes $ 8,187,360 $ 2,185,442 $ 350,000 $ 10,722,802
Permits 1,016,053 1,016,053
Fines & forfeitures 29,500 29,500
Intergovernmental revenues 716,550 220,000 100,000 1,036,550
Use of assets 922,196 500 500 500 55,000 50,000 130,000 40,000 1,198,696
Service charges 1,073,482 130,000 126,700 6,677,900 4,951,750 12,959,832
Miscellaneous 231,700 5,350 500 237,550
Total Revenues 12,176,841 2,315,442 220,500 350,500 100,500 55,000 182,050 6,807,900 4,992,250 27,200,983
EXPENDITURES ( EXPENSES)
Operations 14,795,363 10,000 5,200 70,500 305,000 6,893,656 4,422,839 26,502,558
Capital 15,000 984,000 999,000
Debt Service 1,502 23,048 451,612 834,388 1,310,550
Total 14,796,865 - 10,000 5,200 85,500 984,000 328,048 7,345,268 5,257,227 28,812,108
OPERATING TRANSFERS
In 2,665,442 550,000 325,000 3,540,442
Out ( 325,000) ( 2,315,442) ( 350,000) ( 550,000) ( 3,540,442)
Total 2,340,442 ( 2,315,442) ( 350,000) ( 550,000) - 550,000 325,000 - - -
EXCESS ( SHORTFALL) ( 279,582) - ( 139,500) ( 204,700) 15,000 ( 379,000) 179,002 ( 537,368) ( 264,977) ( 1,611,125)
BEGINNING FUND BALANCE/ NET ASSETS 6,666,273 157,481 321,115 143,927 920,454 3,294,681 18,360,719 9,192,616 39,057,266
ENDING FUND BALANCE/ NET ASSETS $ 6,386,691 $ - $ 17,981 $ 116,415 $ 158,927 $ 541,454 $ 3,473,683 $ 17,823,351 $ 8,927,639 $ 37,446,141
26
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES BY FUND
FISCAL YEAR 2005- 2006
General Public Measure Police Capital Internal
Fund Safety Gas Tax " A" Grants Projects Service Water Sewer Total
REVENUES
Taxes $ 8,555,151 $ 2,228,556 $ 350,000 $ 11,133,707
Permits 1,046,536 1,046,536
Fines & forfeitures 25,500 25,500
Intergovernmental revenues 749,238 220,000 100,000 1,069,238
Use of assets 949,097 500 500 500 55,000 50,000 130,000 40,000 1,225,597
Service charges 1,094,900 130,000 700,195 6,995,500 5,195,100 14,115,695
Miscellaneous 41,700 5,000 500 47,200
Total Revenues 12,462,122 2,358,556 220,500 350,500 100,500 55,000 755,195 7,125,500 5,235,600 28,663,473
EXPENDITURES ( EXPENSES)
Operations 16,240,967 10,000 5,200 70,500 315,000 7,290,371 4,585,341 28,517,379
Capital 15,000 455,000 470,000
Debt Service 854 14,983 444,148 820,852 1,280,837
Total 16,241,821 - 10,000 5,200 85,500 455,000 329,983 7,734,519 5,406,193 30,268,216
OPERATING TRANSFERS
In 2,508,556 400,000 2,908,556
Out ( 2,358,556) ( 200,000) ( 350,000) ( 2,908,556)
Total 2,508,556 ( 2,358,556) ( 200,000) ( 350,000) - 400,000 - - - -
EXCESS ( SHORTFALL) ( 1,271,143) - 10,500 ( 4,700) 15,000 - 425,212 ( 609,019) ( 170,593) ( 1,604,743)
BEGINNING FUND BALANCE/ NET ASSETS 6,386,691 17,981 116,415 158,927 541,454 3,473,683 17,823,351 8,927,639 37,446,141
ENDING FUND BALANCE/ NET ASSETS $ 5,115,548 $ - $ 28,481 $ 111,715 $ 173,927 $ 541,454 $ 3,898,895 $ 17,214,332 $ 8,757,046 $ 35,841,398
27
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCES BY FUND
FISCAL YEAR 2006- 2007
General Public Measure Police Capital Internal
Fund Safety Gas Tax " A" Grants Projects Service Water Sewer Total
REVENUES
Taxes $ 8,920,540 $ 2,228,556 $ 350,000 $ 11,499,096
Permits 1,077,932 1,077,932
Fines & forfeitures 25,500 25,500
Intergovernmental revenues 783,140 220,000 100,000 1,103,140
Use of assets 975,016 500 500 500 55,000 50,000 130,000 40,000 1,251,516
Service charges 1,115,001 130,000 688,395 7,329,000 5,450,600 14,712,996
Miscellaneous 41,700 5,000 500 47,200
Total Revenues 12,938,829 2,358,556 220,500 350,500 100,500 55,000 743,395 7,459,000 5,491,100 29,717,380
EXPENDITURES ( EXPENSES)
Operations 16,544,738 10,000 5,200 70,500 325,000 7,355,733 4,791,804 29,102,975
Capital 15,000 455,000 470,000
Debt Service 174 6,555 436,999 808,001 1,251,729
Total 16,544,912 - 10,000 5,200 85,500 455,000 331,555 7,792,732 5,599,805 30,824,704
OPERATING TRANSFERS
In 2,508,556 400,000 2,908,556
Out ( 2,358,556) ( 200,000) ( 350,000) ( 2,908,556)
Total 2,508,556 ( 2,358,556) ( 200,000) ( 350,000) - 400,000 - - - -
EXCESS ( SHORTFALL) ( 1,097,527) - 10,500 ( 4,700) 15,000 - 411,840 ( 333,732) ( 108,705) ( 1,107,324)
BEGINNING FUND BALANCE/ NET ASSETS 5,115,548 28,481 111,715 173,927 541,454 3,898,895 17,214,332 8,757,046 35,841,398
ENDING FUND BALANCE/ NET ASSETS $ 4,018,021 $ - $ 38,981 $ 107,015 $ 188,927 $ 541,454 $ 4,310,735 $ 16,880,600 $ 8,648,341 $ 34,734,074
28
TOWN OF HILLSBOROUGH
FULL- TIME POSITIONS SUMMARY
FISCAL YEARS 2004- 2005 through 2006- 2007
99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
1 Administration:
2 City Manager:
3 City Manager 1 1 1 1 1 1 1 1
4 Assistant City Manager 1 1 1
5 Assistant to City Manager 1 1 1 1 1
6 Personnel Assistant 1 1 1 1 1
7 City Clerk/ Deputy City Clerk 1 1 1 1 1 1 1 1
8 Total - City Manager 3 3 3 4 4 4 4 4
9 Finance:
10 Finance Director 1 1 1 1 1 1 1 1
11 Assistant Finance Director 1 1 1 1 1 1 1
12 Accountant I/ II 1
13 Account Clerk 2 2 2 2 2 3 3 3
14 Total - Finance 4 4 4 4 4 5 5 5
15 Community Services:
16 Building & Planning Director 1 1 1 1
17 Chief Building Official 1 1 1 1
18 City Planner 1 1 1 1 1 1 1 1
19 Assistant/ Associate Planner 1 1 1 1 1 1 1 1
20 Senior Building Inspector 1 1 1 1 1 1 1
21 Building Inspector II 1 1 1 1 1 1 1 1
22 Clerk/ Services Clerk III 1 1 1 1 1 1 1 1
23 Secretary 1 1 1 1 1 1 1 1
24 Total - Community Services 6 7 7 7 7 7 7 7
25 Public Works:
26 Administration:
27 Public Works Director 1 1 1 1 1 1 1
28 City Engineer / City Engineer ( Contract) 1 1 1 1 1
29 Secretary 1 1 1 1 1 1
30 Construction Inspector 1 1 1 1 1 1
31 PW Superintendent 1 1 1 1 1 1 1 1
32 Total - PW Administration 2 2 4 4 5 5 5 5
33 Maintenance:
34 Streets:
35 Supervisor 1 1 1 1 1 1 1 1
36 Maintenance Craftsworker 1 1 1 1 1 1 1
37 Lead Maintenance Worker 1 1 1 1 1 1 1
38 Maintenance Worker I/ II/ III 4 5 5 5 4 4 4 4
39 Total - Streets 6 7 8 8 7 7 7 7
40 Water:
41 Asst. Superintendent 1 1 1 1 1 1 1 1
42 Lead Maintenance Worker 1 1 1 1 2 2 2 2
43 Water Quality Technician 1 1 1 1
44 Maintenance Worker I/ II/ III 4 5 5 5 7 7 7 7
45 Total - Water 6 7 7 7 11 11 11 11
46 Sewer:
47 Supervisor 1 1 1 1 1 1 1 1
48 Lead Maintenance Worker 1 1 1 1 1 1 1 1
49 Maintenance Worker I/ II/ III 4 4 4 4 5 5 5 5
50 Total - Sewer 6 6 6 6 7 7 7 7
51 Total- Public Works 20 22 25 25 30 30 30 30
29
TOWN OF HILLSBOROUGH
FULL- TIME POSITIONS SUMMARY
FISCAL YEARS 2004- 2005 through 2006- 2007
99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07
52 Fire:
53 Fire Chief 1 1 1 1 1
54 Deputy Chief 2 1 1 1 1
55 Fire Inspector 1 1 1 1 1 1 1
56 Battalion Chief 3 3 3 3 3 2 2 2
57 Fire Captain 9 9 9 9 9 10 10 10
58 Firefighter Engineers/ Paramedics 21 21 21 21 21 16 16 16
59 Clerical Position 0.75 0.75 0.75 0.75 0.75
60 Secretary 1 1 1 1 1 1 1 1
61 Total - Fire 37 37 37 37.8 37.75 30.75 30.75 30.75
62 Police:
63 Police Chief 1 1 1 1 1 1 1 1
64 Police Captain 2 2 2 2 2 2 2 2
65 Police Lieutenant 1 1 1 1 1 1 1
66 Police Sergeant 5 4 4 4 4 4 4 4
67 Police Corporal 4 4 4 4 4 4 4 4
68 Police Officers 16 16 15 15 15 15 15 15
69 Communications Officers 4 4 4 4 4 4 4 4
70 Records Supervisor 1 1 1 1 1 1 1 1
71 Police Services Technician 1 1 1 2 2 2 2 2
72 Code Enforcement Officer 1 1 1 1 1 1
73 Executive Assistant 1 1 1 1 1 1 1 1
74 Total - Police 35 35 35 36 36 36 36 36
75
76 GRAND TOTAL 105 108 111 114 118.75 112.75 112.75 112.75
77
78 GENERAL FUND TOTAL 93 95 98 101 100.75 94.75 94.75 94.75
79
80 POSITIONS NOT FILLED/ FUNDED/ ON CONTRACT:
81 Associate Engineer 1 1 1 1
82 Deputy Fire Chief 1
83 Police Lieutenant 1 1 1 1
84 Police Officer 2 2 1 1
85 Personnel Assistant 1 1 1 1
86 Associate Planner 1
87 TOTAL 7 5 4 4
30
GENERAL FUND EXTENDED FINANCIAL FORECAST 2003- 2012 ($ 000)
1 This extended financial forecast is a model, designed to take a forward look and project what could occur given a certain set of
2 parameters. It can help the city identify its priorities, allocate its resources efficiently and continue to deliver quality services to the
3 community.
45
02/ 03 03/ 04 04/ 05 05/ 06 06/ 07 07/ 08 08/ 09 09/ 10 10/ 11 11/ 12
6 Revenues:
7 Property taxes $ 6 ,797 $ 7 ,441 $ 7,271 $ 7,612 $ 7,951 $ 8,349 $ 8,766 $ 9 ,204 $ 9 ,572 $ 9,859
8 Special public safety tax 2 ,098 2 ,143 2,185 2,229 2,229 2,274 2,319 2 ,365 2 ,412 2,460
9 Business license tax 4 21 5 69 581 592 604 628 653 6 73 690 693
10 Construction permits 5 92 7 83 806 830 855 889 925 9 62 991 996
11 Motor vehicle license fee 6 50 4 35 646 678 712 733 755 7 78 797 817
12 Franchise fees 2 71 5 85 605 629 647 666 686 7 07 725 743
13 Service charges 7 36 9 31 1,073 1,095 1,115 1,148 1,182 1 ,217 1 ,247 1,278
14 All others 1 ,654 1 ,313 1,675 1,306 1,335 1,375 1,416 1 ,458 1 ,494 1,531
15 Total $ 1 3,219 $ 1 4,200 $ 14,842 $ 14,971 $ 15,448 $ 16,062 $ 16,702 $ 1 7,364 $ 1 7,928 $ 18,377
16
17 Expenditures:
18 Salaries 8 ,125 7 ,989 8,217 8,229 8,433 8,602 8,774 8 ,949 9 ,128 9,311
19 Retirement costs 4 0 5 73 1,657 2,295 2,352 2,807 2,863 2 ,920 2 ,978 3,038
20 Health, life, dental
21 & disability insurance 1 ,299 1 ,400 1,531 1,698 1,740 1,827 1,918 2 ,014 2 ,115 2,221
22 All other benefits 2 ,262 1 ,787 1,755 1,750 1,738 1,773 1,808 1 ,844 1 ,881 1,919
23 Total 1 1,726 1 1,749 13,160 13,972 14,263 15,009 15,363 1 5,727 1 6,102 16,489
24 Materials & Supplies 3 32 1 ,787 1,588 1,647 1,671 1,704 1,738 1 ,773 1 ,808 1,844
25 Contributions 6 90 6 64 49 623 611 623 635 6 48 661 674
26 Total 1 2,748 1 4,200 14,797 16,242 16,545 17,336 17,736 1 8,148 1 8,571 19,007
27
28 Excess ( Shortfall) 4 71 - 45 ( 1,271) ( 1,097) ( 1,274) ( 1,034) ( 784) ( 643) ( 630)
29 Beginning Fund Balance 6 ,195 6 ,666 6,666 6,386 5,115 4,018 2,744 1 ,710 926 283
30 Transfers ( 325)
31 Ending Fund Balance $ 6 ,666 $ 6 ,666 $ 6,386 $ 5,115 $ 4,018 $ 2,744 $ 1,710 $ 9 26 $ 283 $ ( 347)
32
33
34 Percentage Changes in Forecast for Revenues and Expenditures
35
36 Revenues:
37 Property taxes 9.5% - 2.3% 4.7% 4.5% 5.0% 5.0% 5.0% 4.0% 3.0%
38 Special public safety tax 2.1% 2.0% 2.0% 0.0% 2.0% 2.0% 2.0% 2.0% 2.0%
39 Business license tax 35.2% 2.1% 1.9% 2.0% 4.0% 4.0% 3.0% 2.5% 0.5%
40 Construction permits 32.3% 2.9% 3.0% 3.0% 4.0% 4.0% 4.0% 3.0% 0.5%
41 Motor vehicle license fee - 33.1% 48.5% 5.0% 5.0% 3.0% 3.0% 3.0% 2.5% 2.5%
42 Franchise fees 115.9% 3.4% 4.0% 2.9% 3.0% 3.0% 3.0% 2.5% 2.5%
43 Service charges 26.5% 15.3% 2.1% 1.8% 3.0% 3.0% 3.0% 2.5% 2.5%
44 All others - 20.6% 27.6% - 22.0% 2.2% 3.0% 3.0% 3.0% 2.5% 2.5%
45 Total 7.4% 4.5% 0.9% 3.2% 4.0% 4.0% 4.0% 3.2% 2.5%
46
47 Expenditures:
48 Salaries - 1.7% 2.9% 0.1% 2.5% 2.0% 2.0% 2.0% 2.0% 2.0%
49 Retirement costs 1332.5% 189.2% 38.5% 2.5% 19.3% 2.0% 2.0% 2.0% 2.0%
50 Health, life, dental
51 & disability insurance 7.8% 9.4% 10.9% 2.5% 5.0% 5.0% 5.0% 5.0% 5.0%
52 All other benefits - 21.0% - 1.8% - 0.3% - 0.7% 2.0% 2.0% 2.0% 2.0% 2.0%
53 Total 0.2% 12.0% 6.2% 2.1% 5.2% 2.4% 2.4% 2.4% 2.4%
54 Materials & Supplies 438.3% - 11.1% 3.7% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0%
55 Reimbursements 0.2% 12.0% 6.2% 2.1% 2.0% 2.0% 2.0% 2.0% 2.0%
56 Transfers 438.3% - 11.1% 3.7% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0%
57 Total 11.4% 4.2% 9.8% 1.9% 4.8% 2.3% 2.3% 2.3% 2.3%
58
59 CalPERS retirement rates:
60 Police 0.000% 4.828% 17.244% 34.417% 34.500% 34.500% 34.500% 34.500% 34.500% 34.500%
61 Fire 0.000% 4.828% 17.244% 22.417% 22.417% 34.500% 34.500% 34.500% 34.500% 34.500%
62 Miscellaneous 1.364% 11.034% 17.741% 23.063% 23.063% 23.063% 23.063% 23.063% 23.063% 23.063%
63
64 Assumptions: Police Plan changes to 3% @ 50 as of January 1, 2005; Fire Plan changes to 3% @ 50 as of July 1, 2007
31
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32
GENERAL FUND
SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE -
GENERAL FUND
FISCAL YEARS 2004- 2005 THROUGH 2006- 2007
Projected Adopted Preliminary Preliminary
Actual Actual Actual Budget Budget Budget
2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 REVENUES: ( 1) ( 1)
2 Operating Revenues:
3 Property Taxes $ 6 ,642,868 $ 6,797,149 $ 7,441,083 $ 7,270,606 $ 7,612,406 $ 7,950,926
4 Business License 5 59,221 421,194 569,128 580,511 592,121 603,963
5 Other Taxes 4 21,063 355,939 323,636 336,243 350,624 365,651
6 Permits 8 20,094 726,212 923,198 1,016,053 1,046,536 1,077,932
7 Fines & Forfeitures 2 9,380 35,024 29,401 29,500 25,500 25,500
8 MV License Fees 6 03,593 650,266 434,963 645,750 678,038 711,940
9 Other State Subventions 9 1,972 106,919 71,820 70,800 71,200 71,200
10 Interest 2 44,533 133,155 60,416 150,000 153,000 160,650
11 Rent 1 45,787 142,544 166,930 167,000 167,000 167,000
12 Franchise Fees 3 02,033 271,332 584,598 605,196 629,097 647,366
13 Service Charges 7 48,347 735,901 930,790 1,073,482 1,094,900 1,115,001
14 All Others 8 5,596 93,369 41,702 231,700 41,700 41,700
15 Total 1 0,694,487 10,469,004 11,577,665 12,176,841 12,462,122 12,938,829
16 PY Reserves for One- Time Charge 1 ,860,000
17 Operating Transfers:
18 Capital Projects Fund 8 7,315
19 Replacement Fund 125,000
20 Public Safety Special Tax 1 ,918,162 2,098,084 2,142,590 2,185,442 2,228,556 2,228,556
21 JPA - ALS Program 1 31,996 135,486 130,000 130,000 130,000 130,000
22 Measure " A" 3 25,000 350,000 350,000 350,000 150,000 150,000
23 Police Grants 41,524
24 Total 2 ,462,473 2,750,094 2,622,590 2,665,442 2,508,556 2,508,556
25 TOTAL AVAILABLE FUNDS 1 5,016,960 13,219,098 14,200,255 14,842,283 14,970,678 15,447,385
26 % of Change - 12% 7% 5% 1% 3%
27
28 EXPENDITURES:
29 City Council 4 8,457 66,154 38,456 38,393 41,933 42,847
30 City Manager 1 04,198 116,042 268,642 323,231 339,828 348,137
31 City Attorney 4 4,091 32,863 84,719 101,302 100,300 102,307
32 Finance 9 3,540 89,220 197,246 263,671 266,754 270,223
33 General Government 3 ,099,911 1,012,624 687,712 791,500 795,518 819,958
34 Police 4 ,020,490 4,088,504 4,711,171 5,298,905 6,021,732 6,123,873
35 Fire 4 ,503,288 4,913,754 5,562,800 5,308,114 5,898,774 6,015,981
36 Planning 3 58,642 400,321 396,086 403,664 417,365 423,932
37 Building 6 99,287 689,282 822,125 889,610 907,416 930,381
38 Streets 1 ,308,162 1,339,495 1,431,298 1,378,475 1,452,201 1,467,273
39 TOTAL EXPENDITURES 1 4,280,066 12,748,259 14,200,255 14,796,865 16,241,821 16,544,912
40 % of Change 4% 10% 2%
41
42 EXCESS ( SHORTFALL) $ 7 36,894 $ 470,839 $ - $ 45,418 $ ( 1,271,143) $ ( 1,097,527)
43
44 TRANSFERS OUT ( 325,000)
45
46 BEGINNING FUND BALANCE $ 5 ,458,540 $ 6,195,434 $ 6,666,273 $ 6,666,273 $ 6,386,691 $ 5,115,548
47 ENDING FUND BALANCE $ 6 ,195,434 $ 6,666,273 $ 6,666,273 $ 6,386,691 $ 5,115,548 $ 4,018,021
48
49 RECOMMENDED RESERVES $ 4 ,284,020 $ 3,824,478 $ 4,260,077 $ 4,439,060 $ 4,872,546 $ 4,963,474
50
51
52
53
54
55
56 ( 1) Revenue and expenditure estimates for FY 05/ 06 and FY 06/ 07 are subject to many unknown factors, including legislation,
57 pending initiatives, CalPERS rates and economic conditions. The budget figures for Years 2 and 3 of the three- year budget
58 will have significant changes and are designed to be starting points for future budget planning.
33
Projected %
Actual Actual Actual To
2001- 2002 2002- 2003 2003- 2004 Totals % Amount % Amount % Amount
1 TAXES: 100- 000.00-
2 Secured Property Tax 40.401.000 $ 5 ,466,054 $ 5,792,634 $ 6,331,434 45% 5% $ 6,648,006 5% $ 6 ,980,406 5% $ 7,329,426
3 ERAF II shift ( 300,000) 5% ( 315,000) 5% ( 330,750)
4 Unsecured Property Tax 40.402.000 6 55,359 667,056 682,259 5% 690,000 6 90,000 690,000
5 Supplemental Roll 40.403.000 4 41,956 268,249 85,602 1% 85,600 1 00,000 100,000
6 Supplemental Roll - Prior 40.404.000 5,181 21,875 2,000 0% 2,000 2,000 2,000
7 Prior Year Property Tax 40.406.000 405 ( 4,666) ( 3,871) 0%
8 Unitary Revenue Tax 40.408.000 5 1,539 49,032 44,138 0% 45,000 5 0,000 50,000
9 ERAF REFUND 40.409.000 2 2,374 2,969 299,521 2% 100,000 5% 1 05,000 5% 110,250
10 Property Transfer Tax 40.413.000 2 19,770 200,620 204,475 1% 5% 214,699 5% 2 25,434 5% 236,706
11 Sales & Use Tax 41.410.000 7 9,288 70,267 78,251 1% 2% 79,816 3% 8 2,210 3% 84,676
12 Public Safety Sales Tax 41.411.000 1 22,005 85,052 40,910 0% 2% 41,728 3% 4 2,980 3% 44,269
13 Business License Tax 41.412.000 5 59,221 421,194 569,128 4% 2% 580,511 2% 5 92,121 2% 603,963
14 Total Taxes 7 ,623,152 7,574,282 8,333,847 59% 8,187,360 8 ,555,151 8,920,540
15 PERMITS:
16 Home Business Permits 41.412.004 5,100 8,280 4,295 0% 3% 4,424 3% 4,557 3% 4,694
17 Building Permits 43.431.000 5 82,830 482,162 622,622 4% 3% 641,301 3% 6 60,540 3% 680,356
18 Electrical Permits 43.433.000 3 9,339 34,405 49,532 0% 3% 51,018 3% 5 2,549 3% 54,125
19 Plumbing Permits 43.435.000 4 2,452 38,846 51,783 0% 3% 53,336 3% 5 4,936 3% 56,584
20 Mechanical Permits 43.437.000 1 8,113 16,036 21,477 0% 3% 22,121 3% 2 2,785 3% 23,469
21 Grading Permits 43.441.000 1 4,087 10,183 32,267 0% 3% 33,235 3% 3 4,232 3% 35,259
22 Charitable Use Permits 43.443.000 170 2,100 600 0% 3% 618 3% 637 3% 656
23 Alarm Permits 43.456.000 1 18,003 134,200 140,622 1% 3% 210,000 3% 2 16,300 3% 222,789
24 Total Permits 8 20,094 726,212 923,198 7% 1,016,053 1 ,046,536 1,077,932
25 FINES & FORFEITURES:
26 BL Fines/ Other Penalties 44.451.000 2 0,429 28,151 2,987 0% 3,000 3,000 3,000
27 Other Fines & Forfeitures 44.453.000 8,951 6,873 21,414 0% 21,500 2 1,500 21,500
28 Alarm Fines 45.455.002 5,000 0% 5,000 1,000 1,000
29 Total Fines & Forfeitures 2 9,380 35,024 29,401 0% 29,500 2 5,500 25,500
30 STATE SUBVENTIONS:
31 HOPTR 45.461.000 7 0,494 66,713 70,623 0% 70,600 7 1,000 71,000
32 Peace Officers Training 45.463.000 1 9,354 11,590 1,004 0%
33 Motor Veh License Fee 45.465.000 6 03,593 650,266 434,963 3% 5% 645,750 5% 6 78,038 5% 711,940
34 Off Highway License 45.469.000 107 290 193 0% 200 200 200
35 Mandated Costs 45.470.000 10 0%
36 Other Grants 45.471.000 2,017 28,316 0%
37 Total State Subventions 6 95,565 757,185 506,783 4% 716,550 7 49,238 783,140
38 USE OF ASSETS:
39 Interest 46.475.000 2 44,533 133,155 60,416 0% 150,000 2% 1 53,000 5% 160,650
40 Rents 46.477.000 1 45,787 142,544 166,930 1% 167,000 1 67,000 167,000
41 Franchise Tax - Electric 46.479.000 4 6,283 51,432 51,500 0% 2% 58,500 2% 5 9,700 2% 60,900
42 Franchise Tax - Gas 46.481.000 7 1,592 46,033 46,000 0% 2% 51,700 2% 5 2,700 2% 53,800
43 Franchise Tax - Garbage 46.483.000 7 9,350 78,286 163,270 1% 1% 165,000 1% 1 66,700 1% 168,400
44 Franchise Tax - Cable TV 46.485.000 1 04,808 95,581 103,552 1% 2% 105,623 2% 1 07,735 2% 109,890
45 Franchise Tax - Water 127,000 1% 127,038 1 40,060 147,064
46 Franchise Tax - Sewer 92,700 1% 97,335 1 02,202 107,312
47 Franchise Tax - Other 46.487.000 576 0%
48 Sale of City Property 46.493.000 2 0,091 0%
49 Total Use of Assets 7 12,444 547,031 811,944 6% 922,196 9 49,097 975,016
50 SERVICE CHARGES:
51 Gen Plan Maint Fee 32,500 2% 3 3,150 2% 33,813
52 Technology Fee 43.444.000 14,274 0% 2% 14,600 2% 1 4,892 2% 15,190
53 Planning Applications 47.501.000 1 36,659 163,319 142,659 1% 2% 145,500 2% 1 48,410 2% 151,378
54 Building Plan Checking 47.503.000 3 08,642 301,627 367,686 3% 2% 375,000 2% 3 82,500 2% 390,150
55 Subdivision 47.505.000 1,500 18,500 2,000 0% 2% 2,000 2% 2,040 2% 2,081
56 Engineering Fees 47.506.000 2,200 0% 2% 16,182 2% 1 6,506 2% 16,836
57 Streets, Curb 47.507.000 6 0,725 18,725 20,000 0% 2% 20,400 2% 2 0,808 2% 21,224
58 Bus Lic Application 47.509.000 1 63,672 167,525 167,643 1% 2% 171,000 2% 1 74,420 1% 176,164
59 Microfilm 47.511.000 6,821 6,562 6,000 0% 2% 6,100 2% 6,222 2% 6,346
60 Fire/ Paramedic Services 47.513.000 4 4,444 35,902 28,777 0% 2% 29,400 2% 2 9,988 2% 30,588
GENERAL FUND REVENUE DETAILS
2004- 2005 2005- 2006 2006- 2007
Adopted Preliminary Preliminary
34
Projected %
Actual Actual Actual To
2001- 2002 2002- 2003 2003- 2004 Totals % Amount % Amount % Amount
GENERAL FUND REVENUE DETAILS
2004- 2005 2005- 2006 2006- 2007
Adopted Preliminary Preliminary
61 Police Services 47.517.000 3,666 2,312 27,656 0% 2% 28,200 2% 2 8,764 2% 29,339
62 Alarm Monitoring Fees 47.517.001 145,000 1% 230,000 2% 2 34,600 2% 239,292
63 PW- Outside Charges 47.519.000 1 5,375 13,858 1,700 0% 2% 1,700 1,700 1,700
64 Booking Fee Reimb 47.521.000 4,325 4,325 0%
65 Community Serv Fees 47.523.000 ( 256) 271 600 0% 2% 600 600 600
66 Other Service Fees 47.525.000 7,099 2,975 270 0% 2% 300 300 300
67 Total Service Charges 7 48,347 735,901 930,790 7% 1,073,482 1 ,094,900 1,115,001
68 MISCELLANEOUS:
69 Workers Comp Reimb 48.541.000 3 6,038 39,844 30,000 0% 20,000 3 0,000 30,000
70 Sale of Maps/ Ordinances 48.542.000 40 11 2 0%
71 Photocopies 48.543.000 2,314 2,414 1,000 0% 1,000 1,000 1,000
72 Other Insurance Reimb 48.545.000 4,723 5,700 0% 205,700 5,700 5,700
73 Miscellaneous 48.555.000 2 7,113 46,377 5,000 0% 5,000 5,000 5,000
74 Total Misc Revenues 6 5,505 93,369 41,702 0% 231,700 4 1,700 41,700
75
76 SUB- TOTAL 1 0,694,487 10,469,004 11,577,665 82% 12,176,841 1 2,462,122 12,938,829
77
78 OPERATING TRANSFERS:
79 Capital Projects Fund 8 7,315
80 Replacement Fund 125,000
81 Public Safety Spec Tax 49.002.000 1 ,918,162 2,098,084 2,142,590 15% 2% 2,185,442 2 ,228,556 2,228,556
82 JPA - ALS Program 49.003.000 1 31,996 135,486 130,000 1% 130,000 1 30,000 130,000
83 Measure " A" 49.001.000 3 25,000 350,000 350,000 2% 350,000 1 50,000 150,000
84 Police Grants 49.005.000 41,524 0%
85 Total 2 ,462,473 2,750,094 2,622,590 18% 2,665,442 2 ,508,556 2,508,556
86
87 GRAND TOTAL $ 1 3,156,960 $ 13,219,098 $ 14,200,255 100% $ 14,842,283 $ 1 4,970,678 $ 15,447,385
35
CONSOLIDATED SCHEDULE OF EXPENDITURES BY OBJECT CODE -
GENERAL FUND
FISCAL YEAR 2004- 2005 COMPARED TO FISCAL YEAR 2003- 2004
Increase
03/ 04 04/ 05 ( Decrease) % of Change
1 SALARIES AND BENEFITS:
2 Salaries 71.701.001 $ 7,988,772 $ 8,216,754 $ 2 27,982 3%
3 Overtime 71.701.002 498,600 503,000 4 ,400 1%
4 Salaries - Temporary 71.701.003 145,000 97,000 ( 48,000) - 33%
5 Work Holiday Pay 71.701.004 160,960 270,841 1 09,881 68%
6 Uniform Allowance 71.701.005 57,700 49,400 ( 8,300) - 14%
7 PERS 71.703.000 572,976 1,657,124 1 ,084,148 189%
8 Social Security/ Medicare 71.703.002 256,498 262,323 5 ,825 2%
9 401( a) 71.703.004 20,621 18,744 ( 1,877) - 9%
10 Auto Allowance 71.703.005 18,028 30,752 1 2,724 71%
11 Health, Life, Dental & Disability 71.704.000 915,587 1,010,457 9 4,870 10%
12 Retired Employee Benefits 71.704.005 484,500 520,900 3 6,400 8%
13 Workers Compensation Insurance 71.705.000 548,571 424,794 ( 123,777) - 23%
14 Leave at Retirement 71.706.001 30,000 45,685 1 5,685 52%
15 Vacation/ Sick Leave Payout 71.706.002 51,079 52,300 1 ,221 2%
16 Total 11,748,892 13,160,074 1 ,411,182 12%
17 GENERAL TOWN SERVICES:
18 Library Services 75.713.004 545,000 555,900 1 0,900 2%
19 Quarterly Newsletter 75.713.006 25,000 26,000 1 ,000 4%
20 Recreation Services 75.713.012 130,000 130,000 - 0%
21 Animal Regulations 75.713.013 57,028 60,000 2 ,972 5%
22 San Mateo Educational TV 80.739.000 2,800 2,800 - 0%
23 Peninsula TV 80.740.000 6,884 6,500 ( 384) - 6%
24 Elections 80.741.000 7,100 7 ,100
25 Blue Card Notices 80.745.000 1,000 ( 1,000) - 100%
26 Cultural Exchange 80.784.000 5,000 200 ( 4,800) - 96%
27 Community Relations 80.747.000 8,500 3,000 ( 5,500) - 65%
28 781,212 791,500 1 0,288 1%
29 MATERIALS & SERVICES:
30 Employee Incentive 71.706.003 100,000 85,000 ( 15,000) - 15%
31 Supplies 75.711.001 49,100 49,900 800 2%
32 Parts/ Supplies/ Signs 75.711.002 25,000 30,000 5 ,000 20%
33 Small Tools & Equipment Repair 75.711.003 5,000 7,000 2 ,000 40%
34 Miscellaneous 75.711.004 250 4,000 3 ,750 1500%
35 Professional Services 75.713.000 471,300 445,000 ( 26,300) - 6%
36 Professional Services - Fire 75.713.000 74,012 ( 74,012) - 100%
37 JPA County Wide Supervisor 75.714.000 24,515 ( 24,515) - 100%
38 Equipment Lease - Copier 75.713.003 17,000 18,100 1 ,100 6%
39 Auditing Services 75.713.005 20,000 16,000 ( 4,000) - 20%
40 City Attorney - General 75.713.007 145,530 150,000 4 ,470 3%
41 City Attorney - Special Projects 75.713.008 20,000 20,000 - 0%
42 Litigation Attorney 75.713.009 20,000 20,000 - 0%
43 Employee Relations 75.713.010 25,000 25,000 - 0%
44 Municipal Code Update 75.713.011 5,000 ( 5,000) - 100%
45 Equipment Maintenance Contracts 80.715.000 84,375 37,000 ( 47,375) - 56%
46 Staff Development 80.717.001 38,500 25,500 ( 13,000) - 34%
47 Personnel Relations 80.719.000 10,000 8,000 ( 2,000) - 20%
48 Recruiting Expenses 80.721.000 16,000 8,500 ( 7,500) - 47%
49 Annual Recognition 80.723.000 2,500 2,500 - 0%
50 Town Events 80.725.000 7,500 7,900 400 5%
51 Special Events 80.727.000 2,500 1,500 ( 1,000) - 40%
52 Municipal Associations 80.729.000 20,000 15,000 ( 5,000) - 25%
53 Professional/ Staff Development 80.733.000 72,665 45,000 ( 27,665) - 38%
54 Conference & Meetings 80.733.001 5,300 5,000 ( 300) - 6%
55 Mileage Reimbursement 80.733.002 50 100 50 100%
56 Dues & Subscriptions 80.733.003 2,900 2,900 - 0%
57 Employee Training 80.733.004 58,000 56,000 ( 2,000) - 3%
58 Fire Prevention Training 80.733.005 7,070 ( 7,070) - 100%
59 Personnel Costs 80.733.006 71,060 41,000 ( 30,060) - 42%
36
CONSOLIDATED SCHEDULE OF EXPENDITURES BY OBJECT CODE -
GENERAL FUND
FISCAL YEAR 2004- 2005 COMPARED TO FISCAL YEAR 2003- 2004
Increase
03/ 04 04/ 05 ( Decrease) % of Change
60 Hiring/ Recruiting Expense 80.733.007 5,000 2,000 ( 3,000) - 60%
61 Allocated Costs 80.735.000 943,293 849,145 ( 94,148) - 10%
62 Utilities 80.735.002 16,000 16,200 200 1%
63 Budget Contingency 80.737.000 65,000 100,000 3 5,000 54%
64 County Booking Expense 80.749.000 3,500 8,000 4 ,500 129%
65 Radio Expense 80.751.000 32,300 4,500 ( 27,800) - 86%
66 Criminal Justice Contract 80.753.000 37,600 39,900 2 ,300 6%
67 Gas and Oil 80.756.000 75,400 59,400 ( 16,000) - 21%
68 Vehicle Repair & Maintenance 80.757.000 107,000 96,000 ( 11,000) - 10%
69 Microfilming 80.761.000 2,450 5,000 2 ,550 104%
70 Printing 80.763.000 24,750 18,000 ( 6,750) - 27%
71 Postage 80.765.000 9,520 8,900 ( 620) - 7%
72 Station 32- 33 Repairs & Maint 80.766.000 30,000 10,000 ( 20,000) - 67%
73 Station/ Dorm Expense 80.767.000 10,750 ( 10,750) - 100%
74 Dam Inspection Costs 80.768.000 3,700 ( 3,700) - 100%
75 Tree Trimming/ Removal 80.769.000 9,000 9,000 - 0%
76 Park Maintenance Contract 80.770.000 42,000 42,000 - 0%
77 K- 9 Expense 80.771.000 12,000 10,000 ( 2,000) - 17%
78 Corporation Yard Expense 80.772.000 5,000 8,000 3 ,000 60%
79 Film Evidence Expense 80.773.000 9,000 18,000 9 ,000 100%
80 Disaster Preparation 80.774.000 7,500 25,000 1 7,500 233%
81 Clets Pin Access 80.775.000 14,000 14,000 - 0%
82 Community Outreach Program 80.777.000 5,300 5,400 100 2%
83 County Tax Collection Fee 80.778.000 53,000 67,000 1 4,000 26%
84 Capital Outlay 80.790.000 39,300 13,000 ( 26,300) - 67%
85 Information Technology 80.800.000 113,000 100,000 ( 13,000) - 12%
86 Janitorial Services 80.801.000 45,000 40,000 ( 5,000) - 11%
87 Fire, Property & Liability Insurance 80.804.000 310,000 360,000 5 0,000 16%
88 Telephone 80.805.000 80,000 80,000 - 0%
89 Utilities 80.806.000 60,000 70,000 1 0,000 17%
90 Bldg Repair & Maint 80.807.000 85,000 50,000 ( 35,000) - 41%
91 Claims Expense 80.808.000 100,000 15,000 ( 85,000) - 85%
92 Pool Vehicles 80.809.000 8,000 ( 8,000) - 100%
93 Total 3,763,490 3,269,345 ( 494,145) - 13%
94 ALLOCATION:
95 Overhead ( 1,535,299) ( 1,360,685) 1 74,614 - 11%
96 Shared Services Allocation ( 40,439) ( 40,439)
97 Allocated Costs ( 1,222,000) ( 1,072,250) 1 49,750 - 12%
98 Total ( 2,757,299) ( 2,473,374) 2 83,925 - 10%
99 TOTAL OPERATING BUDGET 13,536,295 14,747,545 1 ,211,250 9%
100 TRANSFERS 185,000 325,000 1 40,000 76%
101 RESERVES:
102 Computer Replacement 99.925.000 44,430 43,960 ( 470) - 1%
103 Vehicle Replacement 99.925.001 281,000 3,000 ( 278,000) - 99%
104 Furniture & Fixtures 99.925.002 13,700 2,300 ( 11,400) - 83%
105 Radio & Pagers Replacement 99.925.003 9,470 60 ( 9,410) - 99%
106 Dispatch Equipment Replacement 99.925.004 15,000 ( 15,000) - 100%
107 Hose, Nos, Breathing Apparatus 99.925.005 16,400 ( 16,400) - 100%
108 Paramedic Equipment 99.925.006 16,000 ( 16,000) - 100%
109 Retirement Health 99.930.000 82,960 ( 82,960) - 100%
110 Total 478,960 49,320 ( 429,640) - 90%
111
112 GRAND TOTAL $ 14,200,255 $ 15,121,865 $ 9 21,610 6%
37
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38
FIRE
Projected Adopted Preliminary Preliminary
Account Actual Actual Actual Budget Budget Budget
Number 2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
Burlingame budget net of retirement & vehicles $ 6 ,827,826 $ 7 ,339,913 $ 7 ,890,406
Hillsborough budget net of retirement, vehicles & retirees health 4 ,619,283 4 ,605,474 4 ,712,133
40% of Shared Services Cost 4 ,578,844 4 ,670,421 4 ,763,829
Retirement cost 5 66,370 7 26,143 7 44,297
Vehicle Cost 1 28,000 2 56,000 2 56,000
Retiree's Health Insurance 2 02,300 2 25,800 2 31,445
Retiree's Health Reserve - 2 0,410 2 0,410
$ 5 ,475,514 $ 5 ,898,774 $ 6 ,015,981
59
SPECIAL REVENUE FUNDS
ADOPTED BUDGET - PUBLIC SAFETY SPECIAL TAX
FISCAL YEARS 2004- 2005 THROUGH 2006- 2007
Projected Adopted Preliminary Preliminary
Actual Actual Actual Budget Budget Budget
2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 Revenues:
2 Special tax $ 1 ,918,162 $ 2,098,084 $ 2,142,590 $ 2,185,442 $ 2,228,556 $ 2,228,556
3 JPA income 1 31,996 135,486 130,000 130,000 1 30,000 130,000
4 Total 2 ,050,158 2,233,570 2,272,590 2,315,442 2,358,556 2,358,556
56
Operating Transfers Out:
7 General Fund 2 ,050,158 2,233,570 2,272,590 2,315,442 2,358,556 2,358,556
89
Excess of revenues over transfers - - - - - -
10
11 Beginning fund balance -
12
13 Ending fund balance $ - $ - $ - $ - $ - $ -
73
s
ADOPTED BUDGET - GAS TAX
FISCAL YEARS 2004- 2005 THROUGH 2006- 2007
Projected Adopted Preliminary Preliminary
Actual Actual Actual Budget Budget Budget
2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 Revenues:
2 State subvention $ 245,616 $ 219,915 $ 210,000 $ 220,000 $ 220,000 $ 220,000
3 Investments earnings 2,925 4,502 2,000 500 5 00 500
4 Total 248,541 224,417 212,000 220,500 220,500 220,500
56
Expenditures:
7 General Government 5,428 9,761 10,000 10,000 10,000 10,000
89
Excess of revenues over expenditure 243,113 214,656 202,000 210,500 210,500 210,500
10
11 Operating Transfers Out:
12 Capital Projects 300,000 200,000 200,000 350,000 200,000 200,000
13
14 Excess of revenues over
15 expenditures and transfers ( 56,887) 14,656 2,000 ( 139,500) 1 0,500 10,500
16
17 Beginning fund balance 197,712 140,825 155,481 157,481 1 7,981 28,481
18
19 Ending fund balance $ 140,825 $ 155,481 $ 157,481 $ 17,981 $ 28,481 $ 38,981
74
s
ADOPTED BUDGET - MEASURE " A"
FISCAL YEARS 2004- 2005 THROUGH 2006- 2007
Projected Adopted Preliminary Preliminary
Actual Actual Actual Budget Budget Budget
2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 Revenues:
2 Intergovernmental revenues $ 351,218 $ 339,662 $ 343,000 $ 350,000 $ 350,000 $ 350,000
3 Investments earnings 7,449 6,997 7,000 500 5 00 500
4 Total 358,667 346,659 350,000 350,500 350,500 350,500
56
Expenditures:
7 General Government 5,133 5,250 5,200 5 ,200 5,200
89
Excess of revenues over expenditure 358,667 341,526 344,750 345,300 345,300 345,300
10
11 Operating Transfers Out:
12 General Fund 325,000 350,000 350,000 350,000 150,000 150,000
13 Capital Projects - 200,000 200,000 200,000
14 Total 325,000 350,000 350,000 550,000 350,000 350,000
15
16 Excess of revenues over
17 expenditures and transfers 33,667 ( 8,474) ( 5,250) ( 204,700) ( 4,700) ( 4,700)
18
19 Beginning fund balance 301,172 334,839 326,365 321,115 116,415 111,715
20
21 Ending fund balance $ 334,839 $ 326,365 $ 321,115 $ 116,415 $ 111,715 $ 107,015
75
s
ADOPTED BUDGET - POLICE GRANTS
FISCAL YEARS 2004- 2005 THROUGH 2006- 2007
Projected Adopted Preliminary Preliminary
Actual Actual Actual Budget Budget Budget
2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 Revenues:
2 Intergovernmental revenues $ 143,349 $ 118,818 $ 100,000 $ 100,000 $ 100,000 $ 100,000
3 Investments earnings 3,302 2,469 2,500 500 5 00 500
4 Total 146,651 121,287 102,500 100,500 100,500 100,500
56
Expenditures:
7 General Government 253 465
8 Public Safety 74,069 68,007 70,500 70,500 70,500 70,500
9 Capital Outlay 12,084 15,000 15,000 15,000 15,000
10 74,322 80,556 85,500 85,500 85,500 85,500
11
12 Excess of revenues over expenditure 72,329 40,731 17,000 15,000 15,000 15,000
13
14 Operating Transfers Out:
15 General Fund 41,524 -
16 Capital Projects 33,375 -
17 Total 33,375 41,524 - - - -
18
19 Excess of revenues over
20 expenditures and transfers 38,954 ( 793) 17,000 15,000 15,000 15,000
21
22 Beginning fund balance 88,766 127,720 126,927 143,927 158,927 173,927
23
24 Ending fund balance $ 127,720 $ 126,927 $ 143,927 $ 158,927 $ 173,927 $ 188,927
76
INTERNAL SERVICE – REPLACEMENT
FUND
ADOPTED BUDGET - REPLACEMENT FUND
FISCAL YEARS 2004- 2005 THROUGH 2006- 2007
Projected Adopted Preliminary Preliminary
Actual Actual Actual Budget Budget Budget
GAAP BASIS 2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 Revenues:
2 Departmental charges $ 5 61,375 $ 764,335 $ 559,630 $ 126,700 $ 7 00,195 $ 688,395
3 Miscellaneous revenues 6,040 8,708 50,000 5 0,000 50,000
4 Investments earnings 1 12,466 48,153 13,605 5,350 5,000 5,000
5 Total 6 73,841 818,528 581,943 182,050 7 55,195 743,395
6 Expenses:
7 Materials and supplies 40,653 25,000 25,000 2 5,000 25,000
8 Depreciation 1 84,697 260,281 270,000 280,000 2 90,000 300,000
9 Debt service 35,070 30,767 23,048 1 4,983 6,555
10 1 84,697 336,004 325,767 328,048 3 29,983 331,555
11Excess 4 89,144 482,524 256,176 ( 145,998) 4 25,212 411,840
12 Operating Transfers:
13 Capital Project 2 65,075
14 General Fund ( 125,000) 325,000
15 Total 2 65,075 ( 125,000) - 325,000 - -
16 Change in net assets 7 54,219 357,524 256,176 179,002 4 25,212 411,840
17 Beginning net assets 1 ,926,762 2,680,981 3,038,505 3,294,681 3 ,473,683 3,898,895
18
19 Ending net assets $ 2 ,680,981 $ 3,038,505 $ 3,294,681 $ 3,473,683 $ 3 ,898,895 $ 4,310,735
20
21 CASH BASIS:
22 Proceeds from borrowing $ 904,445
23
24 Debt service:
25 Lease principal $ 164,548 $ 171,935 $ 179,654 $ 1 87,719 $ 196,147
26 Interest on lease - 38,154 30,767 23,048 1 4,983 6,555
27 Total debt service $ - $ 202,702 $ 202,702 $ 202,702 $ 2 02,702 $ 202,702
28
29 Capital acquisition:
30 Vehicles:
31 Police $ 5 2,432 $ 41,017 $ 105,000 $ 140,000 $ 1 44,000 $ 126,000
32 Fire 38,300 888,011 60,000
33 PW 85,432
34 Building 22,000
35 Streets 12,722 45,000 2 3,000 29,000
36 Water 56,000 20,000 2 9,000
37 Sewer 21,986 3 5,000
38 Total vehicles $ 1 76,164 $ 963,736 $ 228,000 $ 160,000 $ 2 31,000 $ 215,000
39
40 All others $ 1 22,244
41
42 Beginning working capital $ 1 ,215,973 $ 1,856,481 $ 2,241,323 $ 2,358,856 $ 2 ,428,204 $ 2,674,697
43 Receipts 9 38,916 1,716,933 573,235 132,050 7 05,195 693,395
44 Outlay 2 98,408 1,332,091 455,702 62,702 4 58,702 442,702
45 Ending working capital $ 1 ,856,481 $ 2,241,323 $ 2,358,856 $ 2,428,204 $ 2 ,674,697 $ 2,925,390
88
2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 POLICE
2 Vehicle # 4
3 Vehicle # 5
4 Vehicle # 5 Crash Replacement $ 33,000 $ 37,000
5 Vehicle # 21 IDA2 33,000 37,000
6 Vehicle # 20 A2 33,000 37,000
7 Vehicle # 3 $ 35,000
8 Vehicle # 8 35,000
9 Vehicle # 7 35,000
10 Vehicle # 22 A3 $ 35,000
11 Vehicle # 2 35,000
12 Vehicle # 4 35,000
13 Vehicle # 6 35,000
14 Vehicle # 19 $ 3 6,000
15 Vehicle # 19 3 6,000
16 Vehicle # 5 3 6,000
17 Vehicle # 25 A1 3 6,000
18 Kawasaki # 11 15,000
19 Total - Police 99,000 105,000 140,000 1 44,000 126,000
20 FIRE
21 Command Vehicle 60,000
22 Fire Engine ( lease payments for 2) 202,702 202,702 202,702 2 02,702 202,702
23 Total - Fire 202,702 202,702 202,702 2 02,702 262,702
24 STREETS
25 Vehicle # 226 ( Maint) ( Dump)
26 Vehicle # 210 ( Pickup) ( Gary) 26,000
27 Vehicle # 224 ( Maint) ( Dump) 45,000
28 Vehicle # 211 ( Maint) ( Dump) 29,000
29 Vehicle # 222 ( Pickup) ( Adams) 2 3,000
30 Total - Streets 26,000 45,000 - 2 3,000 29,000
31 BUILDING INSPECTION
32 Pickup 22,000
33 Total - Building Inspection - 22,000 - - -
34 WATER
35 Vehicle # 314 ( Pickup) ( Dave)
36 Vehicle # 318 ( Maint) ( Pickup)
37 Vehicle # 317 ( Maint) ( Pickup) 28,000
38 Vehicle # 312 ( Maint) ( 1- ton Boom) 35,000
39 Vehicle # 316 ( Pickup) ( John) 21,000
40 Vehicle # 319 ( Pickup) ( Cary) 2 9,000
41 Scooter 20,000
42 Total - Water 28,000 56,000 20,000 2 9,000 -
43 SEWER
44 Vehicle # 225 ( New 1- ton truck) 30,000
45 Rodding Machine ( Tony) 34,000
46 Vehicle # 221 ( Crew) ( Barry) 1992 3 5,000
47 Total - Sewer 64,000 - - 3 5,000 -
48
49 GRAND TOTAL $ 419,702 $ 430,702 $ 362,702 $ 4 33,702 $ 417,702
50
51 GRAND TOTAL LESS LEASE PAYMENTS $ 217,000 $ 228,000 $ 160,000 $ 2 31,000 $ 215,000
VEHICLE REPLACEMENT SCHEDULE
89
ENTERPRISE FUNDS
WATER FUND
Projected Adopted Preliminary Preliminary
Account Actual Actual Actual Budget Budget Budget
Number 2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
1 REVENUES: 500- 000.00-
2 Sale of Water 47.525.000 $ 4,859,952 $ 5,341,432 $ 6,351,948 $ 6,351,900 $ 6 ,669,500 $ 7,003,000
3 Meter Charges 47.529.000 299,596 328,702 292,000 300,000 300,000 300,000
4 Service Charges 47.525.000 2,120 4,560 5,000 5,000 5,000 5,000
5 Connection Charges 118,450 65,598 20,000 20,000 20,000 20,000
6 Water Penalties 44.455.000 1,000 1,000 1,000 1,000
7 Miscellaneous 48.551.000 130 1,000 - - -
8 Total 5,280,248 5,740,292 6,670,948 6,677,900 6,995,500 7,329,000
9
10 NON- OPERATING INCOME:
11 Capital Contributions 375,000
12 Transfer from Capital Proj 1,165,152
13 Interest Income 46.475.000 128,368 157,565 130,000 130,000 130,000 130,000
14
15 TOTAL REVENUES 6,573,768 6,272,857 6,800,948 6,807,900 7,125,500 7,459,000
16
17 OPERATING EXPENSES: 501- 000.00-
18 SALARIES & BENEFITS
19 Salary 71.701.001 586,980 621,449 627,871 643,568
20 Overtime 71.701.002 75,000 70,000 73,500 77,175
21 Salary- Temporary 71.701.003 45,000 45,000 47,250 49,613
22 Retirement Costs 71.703.000 64,766 110,250 144,808 148,428
23 Medicare/ FICA 71.703.002 44,113 46,663 47,237 48,418
24 Health, Life & Dental 71.704.001 107,174 125,161 136,731 140,149
25 Retired Employee Benefit 71.704.005 37,888 91,321 48,000 51,200 57,100 58,528
26 Workers Comp Ins 71.705.000 31,539 25,733 26,367 27,026
27 Vac/ Sick Leave Payout 71.706.002 1,000 1,000 1,020 1,046
28 Total 37,888 91,321 1,003,572 1,096,456 1,161,884 1,193,951
29 MATERIALS & SERVICES
30 Office Supplies 75.711.001 5,640 6,599 6,000 8,000 8,500 9,000
31 Parts & Supplies 75.711.002 22,802 50,159 53,000 53,000 54,600 56,200
32 Tools & Equipment 75.711.003 ( 24,588) 37,490 25,000 25,000 25,000 25,000
33 Professional Services 75.713.000 7,664 113,149 35,000 60,000 60,000 60,000
34 Lease of Equipment 75.713.001 4,628 6,757 4,000 4,000 4,000 4,000
35 Auditing Services 75.713.005 12,000 4,300 12,000 5,000 5,000 5,000
36 Water Purchased 75.713.018 1,706,069 1,610,561 2,500,000 2,600,000 2,860,000 2,860,000
37 System Maintenance 80.714.001 63,964 78,536 86,000 60,000 60,000 60,000
38 Pump Repair & Service 80.714.002 43,493 99,971 54,200 80,000 80,000 80,000
39 Equipment Maintenance 80.715.000 2,413 3,755 4,000 4,000 4,000 4,000
40 Personnel Expenses 80.731.000 6,728 11,237 8,000 9,000 9,000 9,000
41 Staff Development 80.733.000 7,690 11,464 10,000 10,000 10,000 10,000
42 Dues & Subscriptions 80.733.003 48,622 56,354 32,000 32,000 32,000 32,000
43 Allocated Costs 80.735.000 292,812 273,965 170,119 146,331 149,991 152,933
44 Utilities 80.735.001 381,000 381,000 381,000 381,000
45 Gas & Oil 80.756.000 9,575 10,130 10,000 10,000 10,000 10,000
46 Vehicle Repairs 80.757.000 14,701 11,158 11,000 11,000 11,000 11,000
47 Printing 80.763.000 6,556 23,883 15,000 10,000 7,000 7,000
48 Postage 80.765.000 9,095 9,603 12,000 8,000 8,000 8,000
49 Tree Work 80.769.000 10,000 10,000 10,000 10,000
50 Corp Yard Expense 80.772.000 5,000 8,000 8,000 8,000
51 Rebate Program 80.783.000 - - -
52 Conservation Expense 80.785.000 8,219 7,446 16,000 - - -
53 Emergency Proj Acct 80.787.000 150,000 150,000 150,000 150,000
54 State Services 80.788.001 10,078 12,456 11,000 12,500 12,500 12,500
55 Testing/ Gen Repair 80.789.000 24,267 26,901 27,000 27,000 27,000 27,000
56 Depreciation Expense 80.799.000 1,040,145 1,035,791 1,100,000 1,100,000 1,100,000 1,100,000
57 Amortization 81.400.000 6,141 6,141 6,150 6,150 6,150 6,150
58 Capital Outlay 80.790.000 40,879 8,544 10,000 20,000 - -
59 Franchise Fees 99.799.001 127,000 127,038 133,390 140,060
60 Claims Expense 80.808.000 48,868 10,000 10,000 10,000
61 Total 3,369,593 3,565,218 4,890,469 4,987,019 5,236,131 5,247,843
90
WATER FUND
Projected Adopted Preliminary Preliminary
Account Actual Actual Actual Budget Budget Budget
Number 2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
62 TRANSFERS:
63 Overhead Allocation 99.900.000 1,296,705 1,494,022 802,066 781,141 863,316 884,899
64 Interest Expense 99.923.000 148,475 493,533 451,612 444,148 436,999
65 Total 1,296,705 1,642,497 1,295,599 1,232,753 1,307,464 1,321,898
66
67
68 SUB- TOTAL 4,704,186 5,299,036 7,189,640 7,316,228 7,705,479 7,763,692
69
70 CAPITAL EXPENSES 171,533
71
72 RESERVES:
73 Computer Replacement 99.925.000 1,890 1,890 1,890 1,890 1,890 1,890
74 Vehicle Replacement 99.925.001 70,000 130,000 24,000 24,000 24,000 24,000
75 Furn & Fixtures Replacement 99.925.002 2,350 2,350 2,350 1,000 1,000 1,000
76 Radios & Pagers Replacement 99.925.003 2,150 2,150 2,150 2,150 2,150 2,150
77 Total 76,390 136,390 30,390 29,040 29,040 29,040
78
79 TOTAL EXPENSES & RESERVES 4,780,576 5,606,959 7,220,030 7,345,268 7,734,519 7,792,732
80 GAAP BASIS
81 Change in net assets 1,793,192 665,898 ( 419,082) ( 537,368) ( 609,019) ( 333,732)
82 Net assets beginning 1 6,144,366 17,937,558 18,779,801 18,360,719 1 7,823,351 17,214,332
83 Prior period adjustment 176,345
84 Restated net assets - beginning 1 6,144,366 18,113,903 18,779,801 18,360,719 1 7,823,351 17,214,332
85 Total net assets $ 17,937,558 $ 18,779,801 $ 18,360,719 $ 17,823,351 $ 1 7,214,332 $ 16,880,600
86
87 CASH BASIS
88 Expenses and debt service less
89 depreciation and amortization $ 3,904,727 $ 4,627,929 $ 6,264,347 $ 6,415,006 $ 6 ,803,921 $ 6,862,083
90 Excess operating revenues $ 2,669,041 $ 1,644,928 $ 536,601 $ 392,894 $ 321,579 $ 596,917
91
92 DEBT SERVICE COVERAGE
93 Interest Expense $ 138,985 $ 148,475 $ 493,533 $ 451,612 $ 444,148 $ 436,999
94 Principal Payment 31,452 62,902 150,467 175,888 175,552 175,501
95 Total Debt Service $ 170,437 $ 211,377 $ 644,000 $ 627,500 $ 619,700 $ 612,500
96
97 Operating expenses before debt
98 service and excluding depreciation $ 3,734,290 $ 4,416,552 $ 5,620,347 $ 5,787,506 $ 6 ,184,221 $ 6,249,583
99 Net revenues available for debt service $ 1,674,326 $ 1,481,305 $ 1,180,601 $ 1,020,394 $ 941,279 $ 1,209,417
100 Debt service coverage $ 9.82 $ 7.01 $ 1.83 $ 1.63 $ 1.52 $ 1.97
91
Projected Adopted Preliminary Preliminary
Account Actual Actual Actual Budget Budget Budget
Number 2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
505- 000.00-
1 REVENUES:
2 Sewer Services Charges 47.531.000 $ 3,262,752 $ 3,589,855 $ 4,635,000 $ 4,866,750 $ 5,110,100 $ 5,365,600
3 Sewer Connection Fees 47.531.000 198,633 8,509 5,000 5 ,000 5,000 5,000
4 Storm Drainage 40.414.000 28,181 26,361 28,000 2 8,000 28,000 28,000
5 Weed Abatement 40.415.000 58,679 36,989 52,000 5 2,000 52,000 52,000
6 Other Service Charges 47.525.000
7 Miscellaneous Income 48.555.000 1,000 5 00 500 500
8 Total 3,548,245 3,661,714 4,721,000 4,952,250 5,195,600 5,451,100
9 NON- OPERATING INCOME:
10 Capital Contributions 253,200
11 Transfer from Cap Project 393,238
12 Interest Income 46.475.000 93,666 34,528 90,000 4 0,000 40,000 40,000
13
14 TOTAL REVENUES 4,035,149 3,949,442 4,811,000 4,992,250 5,235,600 5,491,100
15 OPERATING EXPENSES: 505- 000.00-
16 SALARIES & BENEFITS
17 Salary 71.701.001 394,768 383,843 383,255 392,836
18 Overtime 71.701.002 65,000 5 5,000 57,750 60,638
19 Salary- Temporary 71.701.003 10,000 1 0,000 10,500 11,025
20 Retirement Costs 71.703.000 43,558 6 8,097 88,391 90,601
21 Medicare/ FICA 71.703.002 29,099 2 9,366 29,318 30,051
22 Health, Life & Dental 71.704.001 69,624 8 8,110 96,204 98,609
23 Retired Employee Benefit 71.704.005 4 ,100 4,500 4,613
24 Workers Comp Ins 71.705.000 20,543 1 7,530 17,500 17,938
25 Leave at Retirement 71.706.001 22,937 - - -
26 Vac/ Sick Leave Payout 71.706.002 2,200 - - -
27 Total - 22,937 634,792 656,046 687,418 706,311
28 MATERIALS & SERVICES 505- 201.00-
29 Office Supplies 75.711.001 5,126 5,241 4,700 5 ,500 5,500 6,000
30 Systems Parts/ Supplies 75.711.002 40,141 29,640 25,000 2 5,000 25,000 25,000
31 Small Tools & Equip 75.711.003 13,644 10,744 14,000 1 0,000 10,000 10,000
32 Contractual Services 75.713.000 6,852 52,873 5,000 5 0,000 50,000 50,000
33 Lease of Copier 75.713.001 1,664 2,129 2,000 3 ,000 3,000 3,000
34 Auditing Services 75.713.005 3,200 3,800 4,000 4 ,000 4,000 4,000
35 Disposal - Burlingame 75.713.019 653,476 777,119 950,000 800,000 860,000 924,500
36 Disposal - San Mateo 75.713.020 343,095 444,227 560,000 560,000 602,000 647,150
37 System Maintenance 80.714.001 16,479 22,871 20,000 2 0,000 20,000 20,000
38 Pump Maintenance 80.714.002 16,549 17,260 15,000 4 0,000 40,000 40,000
39 Root Irradiation 80.714.010 4,999 15,000 1 5,000 20,000 25,000
40 Equipment Maintenance 80.715.000 2,746 2,762 2,200 2 ,200 2,200 2,200
41 Personnel Expenses 80.731.000 7,432 8,794 6,900 9 ,000 9,000 9,000
42 Training 80.733.000 1,205 4,861 5,000 5 ,000 5,000 5,000
43 Allocated Costs 80.735.000 109,241 112,508 108,588 7 6,774 77,629 82,558
44 Utilities 80.735.001 36,000 3 6,000 36,000 36,000
45 Gas & Oil 80.756.000 5,412 4,059 7,400 7 ,400 7,400 74,000
46 Vehicle Repair & Maintenance 80.757.000 15,856 14,172 12,000 1 2,000 12,000 12,000
47 Materials Expense 80.760.000 ( 819) 183
48 Printing 80.763.000 1 ,000 1,000 1,000
49 Postage 80.765.000 1 ,000 1,000 1,000
50 Corp Yard Expense 80.772.000 5,000 8 ,000 8,000 8,000
51 County Tax Collection Fee 80.778.000 15,049 8,196 14,300 1 4,300 15,000 15,000
52 Backflow Reimbursement Program 80.783.001 5,193 2 0,000 20,000 -
53 Emergency Project Account 80.787.000 150,000 150,000 150,000 150,000
54 Capital Outlay 80.790.000 15,331 2 0,000 - -
55 Depreciation Expense 80.799.000 829,382 897,895 900,000 900,000 900,000 900,000
56 Amortization Expense 81.400.000 13,385 13,383 13,400 1 3,400 13,400 13,400
57 Franchise Fees 99.799.001 92,700 9 7,335 102,202 107,312
58 Claims Expense 80.808.000 365,385 100,000 150,000 150,000 150,000
59 Total 2,104,114 2,818,626 3,068,188 3,055,909 3,149,331 3,321,120
SEWER FUND
92
Projected Adopted Preliminary Preliminary
Account Actual Actual Actual Budget Budget Budget
Number 2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007
505- 000.00-
SEWER FUND
60
61 STORM DRAINING EXP: 505- 136.00-
62 County Tax Collection Fee 80.778.000 1,000 1,697 1,000
63 Dam Inspection Fee 80.778.001 3 ,700 3,700 3,700
64 New Citywide Fee 80.778.002
65 Miscellaneous 80.778.003 494
66 Overhead Allocation 99.912.000
67 Total 1,000 2,191 1,000 3 ,700 3,700 3,700
68 WEED ABATEMENT EXP: 505- 137.00-
69 Overtime 71.701.008 2 5,000 25,000 25,000
70 Supplies & Small tools 75.711.003 439 4,213 1,000 1 ,000 1,000 1,000
71 Service - Assessments 75.713.000 52,758 29,610 44,000 4 4,000 45,000 46,000
72 Equipment rental 80.716.000 288 200 1 ,000 1,000 1,000
73 Vehicle Repair & Maintenance 80.757.000 1,735 1,500 1 ,500 1,500 1,500
74 County Tax Collection Fee 80.778.000 780 1,597 800 1 ,600 1,600 1,600
75 Sheriff Dept Overhead 80.781.000 5,200 5 ,200 5,200 5,200
76 CA Conservation Corp 80.788.000 3,300 - - -
77 Overhead Allocation 99.904.000 1,192 26,425 25,000 2 5,000 25,000 25,000
78 Total 56,904 62,133 81,000 104,300 105,300 106,300
79
80 TRANSFERS:
81 Overhead Allocation 99.900.000 1,126,225 1,283,834 708,233 554,544 591,252 606,033
82 Debt Service 99.923.000 323,607 818,467 834,388 820,852 808,001
83 Total 1,126,225 1,607,441 1,526,700 1,388,932 1,412,104 1,414,034
84
85 SUB- TOTAL 3,288,243 4,513,328 5,311,680 5,208,887 5,357,853 5,551,465
86
87 CAPITAL PROJECTS 132,343
88
89 RESERVES:
90 Computer Replacement 99.925.000 1,940 1,940 1,940
91 Vehicle Replacement 99.925.001 60,000 84,000 46,000 4 6,000 46,000 46,000
92 Furniture & Fixtures 99.925.002 970 970 970 9 70 970 970
93 Radios & Pagers Replacement 99.925.003 1,370 1,370 1,370 1 ,370 1,370 1,370
94 Total 64,280 88,280 50,280 4 8,340 48,340 48,340
95
96 TOTAL EXPENSES & RESERVES 3,352,523 4,733,951 5,361,960 5,257,227 5,406,193 5,599,805
97 GAAP BASIS
98 Change in net assets 682,626 ( 784,509) ( 550,960) ( 264,977) ( 170,593) ( 108,705)
99 Net assets beginning 9,576,154 10,258,780 9,743,576 9,192,616 8,927,639 8,757,046
100 Prior period adjustment 269,305
101 Reinstated net assets - beginning 9,576,154 10,528,085 9,743,576 9,192,616 8,927,639 8,757,046
102 Total net assets $ 10,258,780 $ 9,743,576 $ 9,192,616 $ 8,927,639 $ 8,757,046 $ 8,648,341
103
104 CASH BASIS
105 Expenses and debt service less
106 depreciation and amortization $ 2,881,231 $ 3,959,771 $ 4,698,093 $ 4,668,239 $ 4,817,241 $ 5,010,904
107 Excess operating revenues $ 1,153,918 $ ( 10,329) $ 112,907 $ 324,011 $ 418,359 $ 480,196
108
109 DEBT SERVICE COVERAGE
110 Interest Expense $ 302,925 $ 323,607 $ 818,467 $ 834,388 $ 820,852 $ 808,001
111 Principal Payment 68,550 137,098 249,533 324,412 324,448 324,499
112 Total Debt Service $ 371,475 $ 460,705 $ 1,068,000 $ 1,158,800 $ 1,145,300 $ 1,132,500
113
114 Operating expenses before debt
115 service and excluding depreciation $ 2,509,756 $ 3,499,066 $ 3,630,093 $ 3,509,439 $ 3,671,941 $ 3,878,404
116 Net revenues available for debt service $ 1,132,155 $ 197,176 $ 1,180,907 $ 1,482,811 $ 1,563,659 $ 1,612,696
117 Debt service coverage $ 3.05 $ 0.43 $ 1.11 $ 1 .28 $ 1.37 $ 1.42
93
SUMMARY OF REQUESTS - CAPITAL IMPROVEMENT PLAN
WATER AND SEWER OPERATIONS
FUNDING SOURCES
04/ 05 05/ 06 06/ 07 07/ 08 08/ 09 Total 2003 Bonds Future Total
WATER
Water Main Replacement Phase II W- 150 $ 1,750,000 $ - $ - $ - $ - $ 1,750,000 $ 1,750,000 $ 1,750,000
Water Main Replacement Phase III W- 151 92,000 1,104,000 1,196,000 1,196,000 1,196,000
Water Main Replacement Phase IV W- 152 85,000 1,020,000 1,105,000 1,105,000 1,105,000
Water Main Replacement Phase V W- 153 133,000 1,342,500 1,475,500 1,475,500 1,475,500
Water System Storage Improvements W- 154 200,000 2,220,000 180,000 450,000 7 0,000 3,120,000 1,570,000 1,550,000 3,120,000
Seismic Improvements ( Water Tanks) W- 155 100,000 30,000 526,500 656,500 656,500 656,500
Pump Station Improvements W- 156 80,000 245,000 90,500 120,000 8 10,000 1,345,500 200,000 1,145,500 1,345,500
Miscellaneous Projects W- 157 300,000 111,700 215,000 15,000 2 15,000 856,700 856,700 856,700
Total Water 2,422,000 3,998,700 2,878,000 1,111,500 1 ,095,000 11,505,200 4,716,000 6,789,200 11,505,200
SEWER
SS Cleaning and Inspection Phase III SS- 250 559,000 559,000 559,000 559,000
SS Cleaning and Inspection Phase IV SS- 251 500,500 500,500 500,500 500,500
SS Rehabilitation Phase III SS- 252 100,000 1,200,000 1,300,000 1,300,000 1,300,000
SS Rehabilitation Phase IV SS- 253 99,000 1,188,000 1,287,000 1,287,000 1,287,000
SS Rehabilitation Phase V SS- 254 76,000 912,000 988,000 988,000 988,000
El Cerrito Ave. SS Replacement SS- 255 400,000 3 ,504,000 3,904,000 400,000 3,504,000 3,904,000
Infiltration/ Inflow Study Phase I SS- 256 70,000 70,000 70,000 70,000
Infiltration/ Inflow Improvements Phase I SS- 257 80,000 480,000 480,000 1,040,000 1,040,000 1,040,000
Infiltration/ Inflow Study Phase II SS- 258 70,000 70,000 70,000 70,000
Infiltration/ Inflow Improvements Phase II SS- 259 80,000 480,000 4 80,000 1,040,000 1,040,000 1,040,000
Sanitary Sewer Manhole Rehabilitation SS- 260 2,500 47,500 2,500 47,500 100,000 50,000 50,000 100,000
Total Sewer 1,211,500 1,826,500 2,397,000 1,439,500 3 ,984,000 10,858,500 4,706,000 6,152,500 10,858,500
STORM DRAIN
Storm Drain Replacement Phase I SD- 350 195,000 195,000 195,000 195,000
Storm Drain Replacement Phase II SD- 351 17,000 204,000 221,000 221,000 221,000
Storm Drain Replacement Phase III SD- 352 9,600 115,200 124,800 124,800 124,800
Storm Drain Replacement Phase IV SD- 353 12,400 148,800 161,200 161,200 161,200
Storm Drain Replacement Phase V SD- 354 12,000 1 44,000 156,000 156,000 156,000
Total Storm Drain 212,000 213,600 127,600 160,800 1 44,000 858,000 416,000 442,000 858,000
Total Sewer Fund 1,423,500 2,040,100 2,524,600 1,600,300 4 ,128,000 11,716,500 5,122,000 6,594,500 11,716,500
GRAND TOTAL - ENTERPRISE FUNDS $ 3,845,500 $ 6,038,800 $ 5,402,600 $ 2,711,800$ 5 ,223,000 $ 23,221,700 $ 9,838,000 $ 13,383,700 $ 23,221,700
94
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APPENDICES
Appendix A
BUDGET AND FISCAL POLICIES
Town of Hillsborough
POLICY NO. 409 - BUDGET AND FISCAL POLICIES Revised: 5/ 10/ 2004
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 Budget. Following the
City’s favorable experience over the
utilization of multiple- year budget, the
City will continue using a three- year
financial plan, emphasizing long- range
planning and effective program
management. 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 three-year
financial plan will establish
measurable program objectives and
allow reasonable time to accomplish
those objectives.
D. Second and Third Year Budgets.
Before the beginning of the second and
third year of the three- year cycle, the
Council will review progress during the
prior year and approve appropriations
for the subsequent fiscal year.
E. 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.
F. Goal Status Reports. The status of
major program objectives will be
formally reported to the Council on an
ongoing, periodic basis.
1
G. Mid- Year Budget Reviews. The
Council will formally review the City’s
fiscal condition, and amend
appropriations, if necessary, at mid-year.
H. 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.
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.
2
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
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).
3
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.
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
authorized by the California Government
Code Section 53601. 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