CITY OF MARTINEZ
CALIFORNIA
2005- 06 AND 2006- 07
BIENNIAL BUDGET
ROB SCHRODER, MAYOR
BILL WAINWRIGHT, VICE MAYOR
LARA DELANEY, COUNCILMEMBER
JANET KENNEDY, COUNCILMEMBER
MARK ROSS, COUNCILMEMBER
JUNE CATALANO, CITY MANAGER
JUNE 15, 2005
TABLE OF CONTENTS
SECTION 1: INTRODUCTION
Budget Message i
CSMFO Awards xiii
Organization Chart xv
Area Map xvi
Miscellaneous Statistics xvii
Demographics xviii
SECTION 2: BUDGET GUIDE
Elements of the Budget Document 1
Budget Calendar 3
Budget Development 4
Structure of City’s Finances 8
Revenue Descriptions 11
Key Budget Assumptions 19
Long Term Debt 21
SECTION 3: SUMMARY SCHEDULES
All Funds Budget Summary 25
Summary Graph of All Funds Revenue 26
Summary of All Funds Revenues 27
Summary Graph of All Funds Expenditures 28
Summary of All Funds Expenditures 29
All Funds Transfer Summary 30
Summary of Positions 31
SECTION 4: GENERAL FUND
Fund Balance 34
Revenue Graph 35
Revenues 36
Expenditure Graph 39
Expenditures by Department 40
10 Year History of Revenues 42
10 Year History of Expenditures 43
General Fund 4 Year Projections 44
General Fund Projections 45
Debt Service Revenue 46
Debt Service Expenditures 47
SECTION 5: GENERAL GOVERNMENT
Organization Chart 48
Overview 49
City Council 50
City Manager 52
Economic Development 54
City Clerk 55
City Attorney 55
City Treasurer 56
Nondepartmental Services 56
Expenditure Summary 57
SECTION 6: ADMINISTRATIVE SERVICES DEPARTMENT
Department Organization Chart 60
Department Overview 61
Administration 62
Personnel 63
Finance 64
Information Systems 65
Expenditure Summary 66
SECTION 7: BUILDING DEPARTMENT
Department Organization Chart 67
Department Overview 68
Building Permits/ Inspection 69
Code Enforcement 70
Construction Management 71
Solid Waste 72
Expenditure Summary 73
SECTION 8: POLICE DEPARTMENT
Department Organization Chart 74
Department Overview 75
Administrative Services 76
Investigative Services 77
Support Services 78
Traffic Enforcement 79
Field Services 80
Emergency Services 81
Expenditure Summary 82
SECTION 9: COMMUNITY DEVELOPMENT DEPARTMENT
Department Organization Chart 84
Department Overview 85
Community Development Administration 87
Planning 88
Engineering 89
Public Works 90
Recreation and Community Services 92
Expenditure Summary 94
SECTION 10: ENTERPRISE FUNDS
Organization Chart 98
Overview 99
Water System 100
Marina 101
Parking Services 102
Enterprise Funds Summary 103
Revenue 104
Schedule of Interfund Transfers 106
Expenditure Summary 107
SECTION 11: SPECIAL REVENUE FUNDS
Special Revenue Funds Summary 116
Revenue 117
Expenditure Summary 120
SECTION 12: INTERNAL SERVICE FUNDS
Internal Service Funds Summary 128
Revenue 129
Expenditure Summary 130
SECTION 13: CAPITAL IMPROVEMENT PROGRAM
Overview 131
Capital Improvement Program Summary 133
Revenue 134
Expenditure Summary 139
SECTION 14: APPENDICES
Appendix A: Budget Resolution
Appendix B: Resolution Establishing an Appropriation Limit
Appendix C: Investment Policy
Appendix D: Fixed Assets Capitalization & Inventory Control Policy
Appendix E: Capital Financing and Debt Management Policy
Appendix F: Summary of Benefits by Represented Unit
Appendix G: Guide to Funds by Number
Appendix H: Glossary
Appendix I: List of Acronyms
Appendix J: Budget Index
City of Martinez Page i
June 15, 2005
Honorable Mayor and City Council Members:
I respectfully submit to you the Biennial Budget for the City of Martinez for fiscal years 2005- 2007. The City Council
held a Goal Setting Session on February 1, 2005. In that meeting the Council articulated several overarching
principles regarding what is especially important to the community, and identified specific goals and objectives for the
next two years in support of those principles. Those principles are outlined below:
Retain and enhance the City’s small town character and strong sense of community. Martinez is a special place.
It retains a small town charm and feels buffered from the more hectic pace and congestion of many other Bay Area
cities. Martinez has its own school district, it is generally safe, and residents consider it a good place to live and to
raise their families. People enjoy traditional community events such as the Fourth of July and Little League parades.
These characteristics have contributed to a tangible sense of community.
Continue to preserve the City’s history to the community’s advantage. Martinez has nurtured a sense of its history,
reflected in the architecture of older residential neighborhoods, in the scale and ambience of its downtown, and by an
appreciation of such features as John Muir’s home and the railroad. This respect for history will contribute to
maintaining the character of the community, an improved City image, and continued economic development.
Enhance the City’s image to attract more investors and visitors. The City has been associated, by some persons not
familiar with it, with nearby oil refining facilities and unattractive gateway corridors, suggesting to them an industrial
character— however, that is not borne out by the real nature of the area. With its strong sense of community pride,
Martinez seeks to enhance its image, and thereby bolster investment, property values, and tourism.
Work toward a stronger, more diverse local economy. The community would benefit from a stronger and more
diversified local economy that would give residents added options for dining out and buying goods and services near
City of Martinez Page ii
home. A more vibrant economy would also contribute to greater City revenues that could be used for desired facilities
and services. The marina and downtown will be where most economic development will be concentrated.
Expand opportunities for outdoor recreation. Martinez also enjoys an attractive natural setting, lying between
hillsides and the waterfront that affords a wide variety of outdoor recreation options. However, additional sports fields
and facilities like a bike park would benefit the community’s young people. A new community swimming pool is
another important goal.
The Council identified several goals that they would like to achieve, along with specific objectives that could be
accomplished during the fiscal years 2005- 2007. The highest priority goals are as follows:
1. Enhance Marina area. Realizing this goal would mean a better functioning marina with physical improvements
such as a new breakwater and deeper channels; new landside improvements such as restaurants, possibly visitor
accommodations, and new active recreation facilities; and more attractive and efficient access through town to the
marina.
Within the timeframe of the 2005- 07 Budget, the City hopes to achieve the following specific objectives:
• Select and enter into a new contract with a new marina operator.
• Review and where necessary, update the master plan and business plan.
• Removal of the old pier.
• Start the permitting process for the new breakwater and dredging; identify funding sources for implementation
of those improvements.
2. Revitalize Downtown. Realizing this goal would mean a downtown with more diverse stores and restaurants,
improved parking and circulation, more housing opportunities, the fuller development of underutilized public
properties, retrofitted un- reinforced masonry buildings, and the addition of a wider range of cultural facilities.
Within the timeframe of the 2005- 07 Budget, the City hopes to achieve the following specific objectives:
City of Martinez Page iii
• Completion and adoption of the Downtown Specific Plan.
• Underground overhead utilities on Marina Vista.
• Assess the feasibility of a new parking structure on existing surface parking lots.
• Move the City Corporation Yard out of downtown.
3. Move Forward on the John Muir Festival Center. Realizing this goal would mean the development of a new
performing arts theater at the old auto parts site, completion of improvements to the John Muir amphitheater, and
remodeling and enlarging the National Park Service Visitor Center.
Within the timeframe of the 2005- 07 Budget, the City hopes to achieve the following specific objectives:
• The JMFC Committee to begin construction of the new theater.
• Completion of the John Muir amphitheater improvements.
4. Vote on Formation of Redevelopment Agency. Realizing this goal would mean a public vote on this issue. If
approved, a number of follow up actions would be needed to actually create the agency and develop a
redevelopment plan.
Within the timeframe of the 2005- 07 Budget, the City hopes to realize the following specific objectives:
• An election on the formation of a Redevelopment Agency.
5. Update emergency response plan. Realizing this goal would mean an updated emergency response plan that
covers protection measures for wildfires and industrial accidents, identification of needed infrastructure and
equipment upgrades, and emergency evacuation plans.
Within the timeframe of the 2005- 07 Budget, the City hopes to achieve the following specific objectives:
• Completion and approval of the updated plan.
• Identification of those implementation measures that are highest priority and most feasible.
City of Martinez Page iv
The 2005- 2007 Biennial Budget incorporates the Council’s principles, goals and objectives and continues existing
levels of service to the community. It also adheres to the fundamental City Council policies of funding current
operations expenditures with current year revenues, maintaining an adequate fund balance to protect the City from
unforeseen circumstances, and allocating resources to the highest priority services.
RECAP OF 2004- 2005
Despite the State’s continuing dependence on local revenues to fill the gap in its operating budget, the City’s revenues
in 2004- 05 are expected to exceed original projections by $ 1,146,000, or a total of $ 16,024,000. In addition to mid-year
revenue adjustments of $ 377,000, this increase reflects several one time revenues, including the VLF Gap Loan
Repayment of $ 569,000, a Community Development Block Grant of $ 25,000, and $ 175,000 for the sale of property.
The approval by voters of Proposition 1A in November 2004 is expected to protect local agencies from future local
revenue shifts by the State. The Triple Flip tax swap imposed by the State in 2004- 05 has reduced the sales tax and
vehicle license fee revenues the City receives, and replaced them with additional property tax revenue. The General
Fund is expected to end fiscal year 2004- 05 with an unreserved fund balance of $ 4.7 million.
The City can be proud of its many accomplishments in support of the Council’s goals for fiscal years 2003- 2005.
These achievements are enumerated in each department’s budget narrative, and the most significant are highlighted
below.
Ensure public safety and security
􀂉 Implemented a “ Wireless 911” system, becoming one of the first agencies in the State to enable cell phone users in
Martinez direct access to the Martinez Police Dispatch in case of an emergency.
􀂉 Implemented the “ Cell Phones for Seniors” program, providing more than 150 cell phones to needy seniors for use
in the event of an emergency.
􀂉 Developed a page on the City’s website that allows citizens to access the general locations of sex offenders
registered in Martinez.
􀂉 In conjunction with Mothers Against Drunk Driving ( M. A. D. D.), implemented a program to target impaired drivers
and monitor drunk driving cases as they migrate through the court system.
􀂉 Implemented a program to provide free gunlocks to citizens to prevent injuries, particularly to children.
City of Martinez Page v
Develop methods of financing infrastructure
􀂉 Secured Measure C funding for the Alhambra Avenue Improvement Project, which will run from Highway 4 to
Alhambra Valley Road and MacAlvey Drive.
􀂉 Obtained grants from the Coastal Conservancy and Department of Boating and Waterways to fund construction of
the Ferry Plaza and reconstruction of the boat launch ramp.
􀂉 Received a Community Development Block Grant ( CDBG) to fund a Façade Improvement Program that provides
money to local businesses as an incentive to improve their storefronts and exteriors.
􀂉 Obtained a grant from the United States Tennis Association to offer basic tennis instructions to children, adults and
people with disabilities.
􀂉 Provided informational workshops and held an advisory vote to gauge citizen support for establishment of a
Redevelopment Agency.
􀂉 Developed a proposed general obligation bond measure that was placed on the November 2004 ballot that would
have supported improvements to the marina, parks, the library and other community facilities.
Revitalize Downtown
􀂉 Hired an Economic Development Director to facilitate attracting new businesses to the City, in particular to the
downtown.
􀂉 Assisted in the opening of 12 new businesses, including several downtown restaurants and retail establishments
􀂉 Completed the draft Downtown Specific Plan and Environment Impact Report ( EIR) and held public workshops.
􀂉 Leased a downtown building for use by the Willows Theatre Company as an indoor performing arts center, with
live performances scheduled to begin in December 2005.
Enhance community pride and involvement
􀂉 Worked with representatives from the ABC show “ Extreme Makeover: Home Edition,” hundreds of community
volunteers, and the local construction firm DeNova Homes to build a new home in one week for a Martinez family
in need.
􀂉 Received the 2004 Helen Putnam Award for Excellence, Honorable Mention, from the League of California Cities
for its efforts to enhance public trust and ethics, while fostering greater community involvement.
􀂉 Worked with local groups to sponsor a successful Jazz Festival.
City of Martinez Page vi
􀂉 Partnered with local civic groups to present the Holiday Frolic event, including the Children’s Light Parade and
lighting of the “ Tree of Spirit.”
􀂉 Continued to aggressively implement code enforcement and introduced a new Administrative Citation Ordinance to
provide additional tools for enforcement.
Practice fiscal responsibility.
􀂉 Received the Government Finance Officers’ Association ( GFOA) Certificate of Excellence Award and the
California Society of Municipal Finance Officers ( CSMFO) Award of Excellence for the City’s 2002- 03 and 2003-
04 comprehensive annual financial reports ( CAFRs).
􀂉 Received the CSMFO Public Communications and Operating Budget Awards for the 2003- 05 budget.
􀂉 Designated reserve funds for one- time expenditures such as paving and beautification projects to enhance the
appearance and livability of the City.
􀂉 Maintained a healthy reserve, despite revenue shifts by the State to fill its budget gap.
􀂉 Invested in replacing more than 1,000 outdated downtown parking meters with modern electronic meters designed
to resist vandalism and theft.
􀂉 Successfully reduced on the job injuries by 48% and realized savings of $ 349,000 in the City’s Workers’
Compensation premium
FINANCIAL SUMMARY
Economic growth is expected to slow this year but the unemployment rate is expected to drop from 5.5% to 5.2%.
Economic forecasters are predicting that gross domestic product ( GDP) will expand by 2.8 – 3.6% in 2005 and 2.6 –
3.6% in 2006. Growth is expected to decelerate in 2006, with the trade deficit and low national savings rate causing
potential problems for the economy. Economists generally agree that the housing market will cool as mortgage rates
rise. Consumer prices are expected to rise 2.2% this year and 2.3% next year.
In California, solid growth is expected in 2005. In 2006, state and local economies will be impacted by an overall
downturn in the national economy. The Bay Area remains the most expensive place to live in the United States. The
cost of housing is the single most important factor driving the cost of living, however, the housing market is expected
to begin to slow leading to tepid overall growth in the next few years.
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There are certain trends in California city finances. State and Federal aid to California cities has declined from 21% of
a typical city’s budget in 1974- 75 to 10% today. The sales tax base is declining due to a shift toward a service- oriented
economy and increasing internet and catalog retail sales. Public safety spending has increased since September 11,
2001, and infrastructure improvements and maintenance are lagging.
The Governor’s proposed 2005- 06 budget recognizes the passage of Proposition 1A in November 2004, which limits
the State’s ability to shift revenues designated for local governments. However, local governments are committed to
contributing $ 1.3 billion in additional property tax shifts in 2005- 06 to help the State balance its budget. The City’s
share is $ 399,000. This amount is in addition to the ongoing ERAF property tax shifts occurring since 1992- 93 from
local governments, which help the State meet its constitutional requirement to fund schools. Through 2004- 05, the
City has lost $ 17,022,000 in these ERAF takeaways. In addition, some funding to cities for special programs not
covered by Proposition 1A has been cut, deferred or suspended, including proposed borrowing from Proposition 42
revenues in 2005- 06; deferral and suspension of some state mandates; elimination of funding for booking fees, and
limitations on charges that counties can impose on cities for these services.
BUDGET HIGHLIGHTS
Revenues
Total General Fund revenues are projected at $ 16,484,258 in 2005- 06 and $ 17,195,063 in 2006- 07. Property tax,
which is the largest source of General Fund revenue, is estimated to grow by 5% in both years, to $ 5,565,000 in 2005-
06 and to $ 5,843,250 in 2006- 07. Sales tax and Sales Tax In- Lieu are expected to increase by 6% in 2005- 06 to
$ 4,133,954, and to increase by 3% in 2006- 07 to $ 4,257,973. Other major revenue sources include franchise fees, user
fees, and business license taxes.
Expenditures
General Fund operating expenditures are $ 16,403,395 in 2005- 06 and $ 17,168,432 in 2006- 07, with an additional
$ 779,276 in transfers out in 2005- 06 and $ 610,431 in 2006- 07. Staff has carefully reviewed all proposed expenditures.
The City’s staffing levels remain low in comparison to surrounding cities of similar size. For example, the City’s ratio
of FTEs per 1,000 of population is 3.2.1 The average of other cities in Contra Costa County is 4.14 FTEs/ 1,000 of
1 Includes totals for primary services that are contracted by other cities ( i. e. Police and Building) and excludes Water System personnel
City of Martinez Page viii
population. No additional general fund positions have been requested. A parking meter technician position to collect
parking meter revenue and funded by parking fund revenue is budgeted. The total FTEs for all funds is 131.8.
Highlights of the budget are identified in the following table:
BUDGET HIGHLIGHTS
INCREASES TO OPERATING FY 2004- 05
BUDGET
FY 2005- 06
BUDGET
DIFFERENCE
FROM 2004- 05
FY 2006- 07
BUDGET
DIFFERENCE
FROM 2004- 05
Salaries 8,026,328 8,186,972 160,644 8,349,831 323,503
PERS 1,607,473 2,025,959 418,486 2,092,586 485,113
Employee health benefits 1,083,524 1,224,121 140,597 1,382,842 299,318
Retiree benefits 367,938 440,966 73,028 509,877 141,939
Utilities 702,560 811,105 108,545 842,659 140,099
TOTAL 11,787,823 12,689,123 901,300 13,177,795 1,389,972
AREAS OF SAVINGS FY 2004- 05
BUDGET
FY 2005- 06
BUDGET
DIFFERENCE
FROM 2004- 05
FY 2006- 07
BUDGET
DIFFERENCE
FROM 2004- 05
Reduction in Overtime 443,300 411,000 ( 32,300) 421,300 ( 22,000)
Reduction in Temporary Salaries 516,874 496,250 ( 20,624) 502,400 ( 14,474)
Reduction in Workers Comp 703,984 516,350 ( 187,634) 542,957 ( 161,027)
Reduction in Liability Insurance 520,794 346,608 ( 174,186) 2 364,469 ( 156,325)
Equipment Replacement Expenditures 401,235 188,000 ( 213,235) 199,000 ( 202,235)
2003 General Bond 240,341 57,306 ( 183,035) 241,306 965
Sworn Disability Insurance 41,585 8,308 ( 33,277) 8,337 ( 33,238)
Disability Insurance Assessment 44,276 24,565 ( 19,711) 24,566 ( 19,710)
TOTAL 2,912,389 2,048,387 ( 864,002) 2,304,335 ( 608,054)
2 Does not include $ 182,000 credit received for reduction in claims experience
City of Martinez Page ix
A healthy fund balance is important to protect the City in times of economic uncertainty. This budget maintains an
undesignated fund balance of $ 4,018,254, or 24% of the operating budget in 2005- 06, and $ 3,434,454, equal to 20% of
the operating budget in 2006- 07. It is equally important to target appropriate investments that will enhance the quality
of life for our citizens and support economic development that will provide long term benefits to the City. A portion of
the fund balance has been designated for one time expenditures that support the City Council’s goals and meet future
financial obligations. These one time expenditures and transfers are presented in the table below:
TRANSFERS FROM RESERVES FY 2005- 06 FY 2006- 07
Transfers to Designated Reserves:
Retiree Benefits 368,641 334,796
Future Pension Obligations 100,000 150,000
Insurance Reserve 125,000
Transfers to Other Funds:
Paving Projects ( CIP) 150,000 105,000
9/ 11 Memorial ( CIP) 15,000
Lifeline Water Program ( Water) 20,635 20,635
One- time Expenditures:
Library Hours 42,800 45,000
Chamber of Commerce 50,000 50,000
Main Street 50,000 50,000
Events Coordinator 30,000 30,000
636 Ward Street Rent 43,740 44,430
Art and Library Grants 13,500 5,000
First Night 5,000 5,000
TOTAL 1,014,316 839,861
City of Martinez Page x
The table below summarizes the General Fund revenues, expenditures, transfers and fund balances for each of the two
years:
GENERAL FUND SUMMARY FY 2005- 06 FY 2006- 07
Revenues 16,484,258 17,195,063
Expenditures 16,403,395 17,168,432
Excess Revenues/ Expenditures 80,863 26,631
Transfer to CIPs ( 165,000) ( 105,000)
Transfer to Water System ( 20,635) ( 20,635)
Transfers to Designated Reserves ( 593,641) ( 484,796)
Beginning Fund Balance 4,716,667 4,043,254
Net Change to Fund Balance ( 698,413) ( 583,800)
Ending Fund Balance 4,018,254 3,434,454
The total budgeted revenue for all City funds in 2005- 06 is $ 33,539,265, with expenditures of $ 36,902,296. In 2006- 07,
revenues are budgeted at $ 36,375,445, with expenditures of $ 39,099,016. All City funds include: General, Gas Tax,
Transportation, Equipment Replacement, Information Services, NPDES- Stormwater, Parking Services, Water System,
Marina, Lighting and Landscaping, Debt Service, and Special Assessment Funds. Each of these funds consolidates the
revenues, expenditures, and one- time investments for specific activities.
Highlights of the Other Funds budgets include:
The Water System Fund includes an increase in the cost of purchasing raw water of $ 200,000 the first year and
$ 267,500 in the second year of the budget. Labor and benefits increased due to the reclassification of four
maintenance workers to the Water System, but was offset by a reduction in job costing for these workers. The Water
System’s overall budget in 2005- 06 is $ 11,920,443, including CIP expenses of $ 2,900,000 and debt service of
$ 900,144. Revenues are budgeted at $ 9,588,660 for 2005- 06. The Water System’s overall budget in 2006- 07 is
City of Martinez Page xi
$ 11,959,561, including CIP expenses of $ 2,750,000 and debt service of $ 892,661. Revenues are budgeted at
$ 9,600,860 for 2006- 07. The capital improvement expenses include the City’s continuing effort to replace existing
water meters with meters that can be read remotely, a block at a time, which allows for more efficient consumption
readings and reduces labor costs. Another ongoing capital improvement is the replacement of water mains that have
reached the end of their useful life cycle, which reduces leak repairs and inconvenience to the public. The largest
project is the replacement of the Harborview Reservoir which will ensure a safe and reliable supply of water to our
citizens. All CIPs for the Water System can be found under Section 10, Enterprise Funds.
The Parking Fund includes a Parking Meter Technician position that was recommended in the parking needs study that
was completed last year. The cost is $ 46,700 in 2005- 06 and $ 55,700 in 2006- 07. The budget reflects a reduction in
repair and maintenance of $ 15,000 due to the installation of new parking meters, which was a capital improvement
project in 2004- 05. The operating budget for 2005- 06 is $ 470,547; revenues are projected at $ 472,700. The 2006- 07
operating budget is $ 480,950 and revenues are budgeted at $ 483,800. The fund balance will increase slightly over the
two year period.
The Marina Fund includes a reduction in expenditures over the two year budget of $ 48,035 in relation to the 2004- 05
budget. This reduction is due primarily to the completion of the restaurant design. Revenues are estimated at $ 163,319
in 2005- 06 with expenditures of $ 157,228. Revenues in 2006- 07 are projected to be $ 166,747 with expenditures of
$ 166,191. There are no new capital improvements budgeted for the Marina in 2005- 06 and 2006- 07.
Capital Improvement Program
The Capital Improvement Program ( CIP) budget, excluding enterprise funds, is $ 3,176,485 for 2005- 06 and $ 5,331,994
in 2006- 07. The projects included in the program are described in Section 13, Capital Improvement Projects.
CONCLUSION
The City must continue to identify both opportunities to reduce costs and to attract new sources of revenue. It must
also continue its efforts to support existing businesses and attract new businesses that meet the community’s needs and
strengthen its economic base. Finally, it is essential that the City continue its practice of prudent fiscal management to
ensure that its resources are adequate to draw upon during economic downturns and to meet its future obligations. This
City of Martinez Page xii
Budget presents a plan for addressing the goals of the City Council within existing resources. It supports both the
immediate needs of the community and the long- term fiscal health of the City.
Respectfully Submitted,
June Catalano
City Manager
CITY OF MARTINEZ ORGANIZATION CHART
Citizens of Martinez
City Clerk ( elected)
Administration
Personnel
Finance
Information Systems
Admin Services Dept
Building Permits/ Inspections
Code Enforcement
Construction Management
Solid Waste
Building Dept Economic Development
Administration
Planning
Public Works
Water System
Parking Services
CIP
Engineering
Marina
Senior Center
Recreation and Community Services
Community Development Dept
Administrative Services
Investigative Services
Support Services
Traffic Enforcement
Field Services
Emergency Services
Police Dept
City Manager
City Council ( elected) City Treasurer ( elected)
City of Martinez Page xv
AREA MAP
N
S
City of Martinez
City of Martinez Page xvi
Police Protection
Number of Police Stations 1
Number of Sworn Officers 39
Number of Support Personnel 16
Employees ( Full Time) 131.8
Miles of Water Lines ( Estimated) 200
Area ( Miles) 12.5
Water Meters ( Estimated) 9,800
Miles of Streets 122 Building Permits Issued ( Estimated) 3,200
Building Inspections ( Estimated) 12,000
Acres of Developed Park Land 103
Hospitals
Elevation 30 feet Contra Costa Regional Medical Center
Kaiser Permanente Hospital
Population 36,818 VA Medical Center
Average Minimum Temperature 57 degrees Education
Average Maximum Temperature 92 degrees Elementary Schools 4
Middle School 1
Average Rainfall 18” High School 1
Continuation School 1
Median Household Income $ 63,010 Independent Study 1
Students 5,297
Median Home Price $ 415,000
Sources:
US Census Bureau
Various City Records and the Martinez Unified School District
City of Martinez Area Chamber of Commerce
MISCELLANEOUS STATISTICS
Council/ Manager
Year of Incorporation 1876
Form of Government
City of Martinez Page xvii
DEMOGRAPHICS INFORMATION
City of Martinez Page xviii
Martinez Housing Units
Source: 2004 Draft Housing Element
0
5,000
10,000
15,000
20,000
Total
Housing
Units
Vacant
Housing
Units
Occupied
Housing
Units
Owner
Occupied
Housing
Units
Renter
Occupied
Housing
Units
Age of the Martinez Population
Source: U. S. Census Bureau
27%
10%
25%
38% Age 45- 64
Age 65+
Age 0- 19
Age 20- 44
Martinez Workforce
Source: Dun & Bradstreet
Retail Trade
Construction
Health Services
Transportation, Public Utilities
Business Services
Engineering, Accounting, Research,
Management Services
Manufacturing
Wholesale Trade
Finance, Insurance, Real Estate
Public Administration*
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
* Martinez is the County Seat of Contra Costa County.
City of Martinez Page 1
ELEMENTS OF THE BUDGET DOCUMENT
The Budget for 2005- 2007 is a policy document that describes the City’s goals and objectives and indicates how resources are
allocated to achieve these goals. In addition, it serves as a financial plan, an operations guide, and a communications tool.
The document includes the following key elements:
Introduction
The Introduction includes the City Manager’s Budget Message to the City Council. The Budget Message highlights the Council’s
goals, summarizes the City’s financial position, highlights key issues that are addressed in the budget, documents proposed new
programs, and recommends strategies for ensuring financial stability while continuing to provide high quality services to the
community. The Introduction also has the overall City organization chart, area map and miscellaneous statistics and demographics.
Budget Guide
The Budget Guide section includes the budget calendar, an explanation of the budget process, structure of the City’s finances, revenue
descriptions, key assumptions used to build the budget, and the City’s long term debt.
Summary Schedules
This Summary Schedules section provides summary financial information regarding fund balances, projected revenues, expenditures
and transfers for all funds in the City. This section also includes a summary of positions by department.
General Fund and Departmental Operating Budgets
The General Fund section provides descriptive information on the functions, accomplishments, objectives, and budget highlights of
the General Government budget group, and a listing of both historical and proposed expenditures for this area.
The Departmental Operating Budgets are divided into individual sections for the following operating departments: Administrative
Services, Building, Police, and Community Development. Each section includes a departmental organization chart, staffing summary,
and a list of major responsibilities. Additionally, each department budget provides summary narrative and financial information for
City of Martinez Page 2
each of its divisions/ program areas that includes significant accomplishments for FY 2004- 05, upcoming objectives, and budget
highlights. The historical and proposed two year budget expenditures by division are provided.
Enterprise Funds
The Enterprise section provides information on the City’s three enterprise funds: Water System, Marina and Parking Services.
Special Revenue Funds
This section provides information on the City’s five special revenue funds: COPS Grants, Gasoline Tax, Transportation, NPDES,
Lighting and Landscaping, and Mitigation/ Impact Fees.
Internal Service Funds
This section includes information on the City’s two internal service funds: Equipment Replacement and Information Systems.
Capital Improvements
The Capital Improvements section details the proposed capital projects for the 2005- 07 fiscal years and those projects carried forward
from the prior year. This section includes projects that have been reviewed and approved by the City Council. Projects recommended
for funding have been selected based on criteria approved by the City Council.
Appendices
The Appendices section includes: Budget Resolution; Appropriation ( Gann) Limit Resolution and Description; Investment Policy;
Fixed Assets Capitalization and Inventory Control Policy; Capital Financing and Debt Management Policy; Summary of Benefits by
Representative Unit; Guide to Funds by Number; Budget Glossary; List of Acronyms; and Budget Index.
City of Martinez Page 3
2005- 06 AND 2006- 07 BUDGET CALENDAR
October 26, 2004: Budget Calendar and staffing summaries/ personnel listings distributed to departments
November 9, 2004: Departments return staffing summaries/ personnel listings to Finance
December 7, 2004: Program revenue and operations budget worksheets distributed to departments
January 17, 2005: Departments return program revenue and operations budget worksheets to Finance
January 26, 2005 Budget narrative worksheets distributed to departments
February 1, 2005: Council goal- setting session
February 18, 2005: Finance completes initial draft of budget and assembles workbooks
February 22 – March 4, 2005: Budget work sessions with City Manager and Department Heads
February 23, 2005: Departments return budget narratives to Administrative Services
March 10, 2005: Final budget narratives distributed to departments
March 14, 2005: CIP updates to Finance
March 17, 2005: Departments return final budget narratives to Administrative Services
March 23, 2005: Meet with Budget Subcommittee
April 20, 2005: Public budget workshop
April 21, 2005: Review changes with Budget Subcommittee
May 4, 2005: Additional discussion by City Council at Council Meeting
June 1, 2005: Present proposed budget to Council
June 15, 2005: Budget adopted by Council
June 30, 2005: Budget printed and available for distribution
City of Martinez Page 4
BUDGET DEVELOPMENT
Budget Process
The proposed budget includes estimated revenues and expenditures for operating and capital improvement projects for the two fiscal
years on a basis consistent with Generally Accepted Accounting Principles ( GAAP). The data is presented to the City Manager for
review and a public meeting is conducted to obtain public comments. The City Council adopts the budget by June 30 through passage
of an adopting resolution.
As with any budget preparation, the ongoing process includes the phases of development, proposal, adoption, and monitoring. The
process began with the preparation and distribution of budget instructions and guidelines by the Administrative Services Department
in October 2004. Departments were instructed to submit their budget requests to the City Manager by mid January 2005 so that the 2-
year budget could be developed and reviewed by the Budget Subcommittee. Additionally, the City Council held a public goal- setting
session in February 2005 to establish the City’s priorities for the budget period. On June 1, 2005, the Council was presented with the
proposed budget. The budget – and an appropriations resolution to fund both years of the budget – were adopted at a public City
Council meeting on June 15, 2005.
After the budget has been adopted, the monitoring phase will begin. Department heads will maintain control over their respective
funds and ensure adequate resources are available. A mid- year budget review will be conducted in February of each of the two fiscal
years. The City will conduct an annual budget review in June of the first year, and at that time make any changes to update the second
budget year. Any necessary adjustments to the budget will be enacted by City Council resolution.
Level of Budget Control
The 2- year budget is prepared by fund, function, and department. The City’s department heads may make transfers of appropriations
within their respective departments. The City Manager is authorized to revise the budget so long as the total revisions in any single
budget year do not exceed 5% of the budget, and provided that sufficient revenues are available to offset such revisions. Council
approval is required for additional appropriation from fund balances or new revenue sources. The legal level of budgetary control is
the department level.
City of Martinez Page 5
Reporting Entity
The City of Martinez was incorporated 1876 under the laws of the State of California and enjoys all the rights and privileges
applicable to a General Law City. The City operates under a Council- Manager form of government, and currently provides a wide
variety of services to its citizens, including police, public services, community development, engineering, recreation, and general
administrative services. The financial statements for the City of Martinez are prepared in conformity with Generally Accepted
Accounting Principles ( GAAP) as applied to government units. The Governmental Accounting Standards Board ( GASB) is the
accepted standard- setting body for establishing government accounting and financial reporting principles. The more significant of the
City’s accounting policies are described below.
Fund Accounting
The City uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is
designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City
functions or activities.
A fund is an accounting entity with a self- balancing set of accounts established to record the financial position and results of
operations of a specific governmental activity. An account group is a financial reporting device designed to provide accountability for
certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial
resources. The City maintains both governmental and proprietary fund types.
Governmental Fund Types
General Fund: The General Fund is the general operating fund of the City and accounts for all unrestricted financial resources except
those required to be accounted for in another fund.
Special Revenue Funds: Special Revenue Funds account for the proceeds of specific revenue sources ( other than special assessments,
expendable trusts or capital projects) that are restricted by law or administrative action to expenditures for specified purposes.
Debt Service Funds: Debt Service Funds account for the accumulation of resources for and the payment of, interest and principal on
general long- term debt and related costs.
Capital Projects Funds: Capital Projects Funds account for financial resources segregated for the acquisition of major capital projects
or facilities ( other than those financed by proprietary fund types.)
City of Martinez Page 6
Proprietary Fund Types
Enterprise Funds: Enterprise Funds account for operations in a manner similar to private business enterprises where the intent is that
the costs ( expenses, including depreciation) of providing goods or services to the general public on a continuing basis is to be financed
or recovered primarily through user charges.
Internal Service Funds: Internal Service Funds account for the financing of goods and services provided by one department or agency
to other departments or agencies of the City or to other governmental units, on a cost- reimbursement basis.
Basis of Accounting
Basis of accounting refers to how revenues and expenditures are recognized in the accounts and reported in the financial statements,
regardless of the measurement of focus applied. Governmental fund types use a modified basis of accounting. Revenues are
recognized when available and measurable. Revenues which are accrued include Federal and State grants and subventions, transient
occupancy taxes, document transfer tax, sales taxes collected by the State on behalf of the City prior to year- end, interest and certain
charges for current services. Revenues which are not considered susceptible to accrual include certain licenses, permits, fines,
forfeitures and penalties. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term
debt and special assessment debt are recorded as expenditures when paid.
All proprietary funds are accounted for using the accrued basis of accounting. Their revenues are recognized when they are earned
and their expenses are recognized when they are incurred. Depreciation of all proprietary fund fixed assets is charged as an expense
against operations each year, and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on
the proprietary fund’s balance sheet as a reduction in the book value of fixed assets.
Basis of Budgeting
The budgets of General Governmental Type Funds are prepared on a modified accrual basis, which means that obligations of the City
are budgeted as expenditures, but revenues are recognized only when they are measurable and available.
The Enterprise Funds also recognize expenditures as encumbrances when a commitment is made. Revenues, on the other hand, are
recognized when they are obligated to the City, for example water user fees are recognized as revenue when service is provided.
In all cases for the General Governmental and Enterprise Funds when goods and services are not received by year end, the
encumbrances lapse.
City of Martinez Page 7
The Comprehensive Annual Financial Report ( CAFR) shows the status of the City’s finances on the basis of “ Generally Accepted
Accounting Principles” ( GAAP). In most cases this conforms to the way the City prepares its budget with the following exceptions:
• Principal payments on long- term debt within the Enterprise Funds are applied to the outstanding liability on a GAAP basis, as
opposed to being expended on a Budget basis.
• Capital Outlay within Enterprise Funds are recorded as assets on a GAAP basis and expended on a Budget basis.
• Depreciation expense is recorded on a GAAP basis only.
City of Martinez Page 8
STRUCTURE OF THE CITY’S FINANCES
The City’s finances are structured in a variety of funds, which are the basic accounting and reporting entities in governmental
accounting: The funds that comprise the 2005- 07 budget are described as follows:
General Fund
The General Fund is the City’s primary reporting entity for current general government operations of the City of Martinez. It accounts
for all financial resources not required by law or administrative action to be accounted for in another fund. Section 4 of this Budget
provides detailed financial information of the General Fund. The budget by department can be found under Sections 5- 9.
Enterprise Funds
The City’s Enterprise Funds include the Water System, Marina, and Parking Services. Each is financed and operated in a manner
similar to a private business enterprise. The intent is that the costs of providing goods or services to the general public on a continuing
basis are to be financed or recovered primarily through user charges. The rate schedules for these services are established to ensure
that revenues are adequate to meet all necessary expenditures. Section 10 provides the financial information for the City’s Enterprise
Funds, which includes their respective Capital Improvement Program ( CIP) information.
Water System Fund
The Water System Fund accounts for the funds received from customers receiving water service provided by the City and the related
expenditures for administration, system improvements, maintenance and repair, and debt service issue related to the provision of water
service to the customers.
Marina Fund
The Marina Fund revenues include lease payments, sales and property taxes, and a State loan for capital improvement projects.
Parking Services Fund
Parking Fund accounts for the activities related to the various parking lots and parking meters in the City. Revenue is generated from
parking meters and parking permits
City of Martinez Page 9
Special Revenue Funds
Special Revenue Funds account for revenue sources that are legally restricted to specific purposes. These funds can be found in detail
under Section 11.
Cops Grants
These are Federal and State grants received by the Police Department for improvements in public safety technology and other special
projects.
National Pollution Discharge Elimination System ( NPDES)
The City participates in the Contra Costa County Flood Control and Water Conservation District for the collection, administration,
distribution, and expenditure of funds derived from stormwater utility assessments. The assessment is collected with property taxes
received by the County Tax Collector and is used for pollution control improvements and drainage system maintenance.
Transportation
These funds are a combination of State and Federal grants and Measure C funds that provide congestion relief through capital
improvements and transportation network and growth management. Measure C funds are local revenue used to leverage Federal and
State contributions available for transportation projects.
Gasoline Tax
Gasoline tax is a tax on each gallon of fuel used to propel a motor vehicle or aircraft. Gas tax revenue is distributed to cities using
several formulas. These funds must be used exclusively for engineering costs, maintenance and repair, and capital improvement
projects related to City streets.
Lighting and Landscaping
This fund accounts for the installation, maintenance and improvements of subdivision landscape and lighting within the various
special assessment districts. Monies are collected through an annual levy on the property owners within each district.
Mitigation/ Impact Fees
This fund accounts for fees collected from developers to mitigate the impact of new development. The City established the following
impact fees: traffic, park in- lieu, child care, drainage, cultural facilities, police facilities, and park and recreation.
City of Martinez Page 10
Internal Service Funds
Internal Service Funds are proprietary funds used by the City to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City on a cost- reimbursement basis. The following are the City’s two
Internal Service Funds, which can be found under Section 12:
Equipment Replacement
The Equipment Replacement Fund accounts for the accumulation of funds for equipment replacement and the subsequent replacement
and maintenance of the equipment under City control. Costs are charged to departments by way of “ rental charges” of City vehicles
and equipment.
Information Systems
The Information System Fund accounts for the services rendered to all City departments for management of the City’s hardware and
software needs. Costs are charged to departments by percent based on the number of computer work stations and overall use of
technology.
Capital Improvement Program
The Capital Improvement Program ( CIP) budget is for expenditures on capital projects such as major street or park improvements,
building construction, and major facility maintenance. Section 13 provides those projects that are in progress or will be undertaken in
the next two budget years ( other than those paid for by Enterprise Funds).
Debt Service Funds
Debt Service Funds are used to account for the accumulation of resources for and the payment of general long- term debt principal,
interest and related costs ( other than those paid for by the Enterprise Funds). Information on the debt service of the General Fund can
be found in Section 4.
City of Martinez Page 11
REVENUE DESCRIPTIONS
General Fund Revenues
The General Fund is the City’s primary reporting entity for current general government operations of the City of Martinez. It accounts
for all financial resources not required by law or administrative action to be accounted for in another fund. All revenues not restricted
to specific purposes are recorded in the General Fund, and likewise all services that are of a general nature – police, routine public
works activities, development- related functions, leisure activities, and general administrative support – are budgeted here. The
General Fund is the City’s largest operating fund.
The City of Martinez relies on four major revenue sources, listed below, to balance the General Fund. These revenue sources make up
79% of the General Fund budget.
Property Tax
Property taxes are levied by the County and are based on an annual assessed valuation of the property by the County Assessor. The
property tax is limited to 1% of the assessed value, of which Martinez receives approximately 14% as its share. The balance is shared
by the following: Contra Costa County ( 26%), school districts ( 35%), special districts ( 7%) and the Education Revenue Augmentation
Fund ( ERAF 18%). The chart below illustrates how the City shares property tax with other agencies.
City of Martinez - Property Tax Allocation
14%
26%
35%
18%
7%
City County Schools ERAF Special Districts
City of Martinez Page 12
Local governments are committed to contributing $ 1.3 billion in additional property tax shifts in 2005- 06 to help the State balance its
budget, of which the City’s share is $ 399,000. This amount is in addition to the ongoing ERAF property tax shifts that have occurred
since 1992- 93 from local governments which help the State meet its constitutional requirement to fund schools. Through 2004- 05,
the City has lost $ 17,022,000 in these ERAF takeaways. The chart below highlights the cumulative amounts of lost revenue to the
City as a result of ERAF.
Martinez Total ERAF Shift
1992- Present
$-
$ 5,000,000
$ 10,000,000
$ 15,000,000
$ 20,000,000
1992/ 93
1993/ 94
1994/ 95
1995/ 96
1996/ 97
1997/ 98
1998/ 99
1999/ 00
2000/ 01
2001/ 02
2002/ 03
2003/ 04
2004/ 05
Property tax revenue is expected to increase by 5% in FY 2005- 06 to $ 5.6 million and 5% in FY 2006- 07 to $ 5.8 million, largely due
to new construction and the reassessment of recently sold properties. These assumptions are representative of the region- wide surge in
real estate values as a result of strong home sales activity. Projections are based on historical trends of assessed valuation growth for
the City of Martinez and input from the County Assessor’s Office.
Sales and Use Tax & Sales Tax In- Lieu
Sales tax is imposed on retailers for the privilege of selling tangible personal property. Use tax is imposed on the user of a product
purchased out- of- state and delivered for use in California. Local sales tax revenue is distributed by the State. Prior to 2004- 05, cities
City of Martinez Page 13
received 1% of sales tax revenue based on a point- of- sale formula. As of July 1, 2004, the State reduced the local allocation by .25%,
and uses this portion as security for the State’s “ Economic Recovery Bonds.” The State has replaced the .25% reduction of sales tax
with a dollar- for- dollar allocation of local property tax, which is referred to as Sales Tax In- Lieu. Sales tax revenue, including the
Sales Tax In- Lieu, is projected to grow by 6% in FY 2005- 06 to $ 4.1 million and 3% in FY 2006- 07 to $ 4.3 million. The table below
illustrates the percentage of sales tax revenue by economic category.
Top Sales Tax Generators of 2004
Source: MBIA MuniServices Company
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Tra nsportation
General Reta il
Food Products
Construction
Business to Business
Miscellaneous
VLF Property Tax Swap & Motor Vehicle In- Lieu Tax
Prior to fiscal year 2004- 05, a license fee equivalent to 2% of the market value of motor vehicles was imposed annually by the State
“ in lieu” of personal property taxes ( the “ Motor Vehicle In- Lieu Tax”) and amounted to approximately $ 2 million of revenue to the
City. Beginning in 2004- 05, this rate was dropped to .67%, which will drop Motor Vehicle In- Lieu Tax to $ 175,498 in 2005- 06 and to
$ 179,008 in 2006- 07. The difference between the old and new VLF rate is being made up with a new revenue source referred to as
the “ VLF Property Tax Swap,” which will grow with property taxes. This revenue is estimated to be $ 2,018,225 in 2005- 06 and
City of Martinez Page 14
increase by 4% to $ 2,058,590 in 2006- 07. The City lost $ 625,588 in VLF revenue in 2003- 04 due to the gap caused by the delayed
backfill of VLF revenue ( referred to as the “ VLF Gap Loan”). The City chose to “ sell” its loan in 2004- 05 and received $ 568,991,
which is reflected in the Major Revenues History graph below.
Franchise Fees
The City imposes fees on certain utility companies and other businesses for “ rental” of the City streets and rights- of- way. In
Martinez, franchise fees based upon a percentage of total revenue are collected from several agencies including PG& E, Comcast
( cable television), and Pleasant Hill/ Bayshore Disposal ( refuse collection, disposal, recycling). The City also receives franchise fees
for pipelines that are based upon specific dimensions. These calculations are periodically adjusted to reflect CPI increases. This
revenue source is projected to increase by 16% to $ 1,117,500 in FY 2005- 06 due to the anticipated renewal of the City’s cable
television franchise, and increase marginally to $ 1,132,500 in FY 2006- 07. The chart below provides a historical perspective of the
growth of the top four General Fund revenue sources over the past 10 years.
City of Martinez Major Revenues History
$-
$ 1
$ 2
$ 3
$ 4
$ 5
$ 6
Property Sales Tax VLF and Franchise
Taxes and Sales Tax In- Lieu Property Tax Swap Fees
Millions
1994/ 95
1995/ 96
1996/ 97
1997/ 98
1998/ 99
1999/ 00
2000/ 01
2001/ 02
2002/ 03
2003/ 04
2004/ 05
Note: Sales Tax Revenues for FY 2001- 02 include audit adjustments for deferred revenues and accruals at year- end. The decrease from FY 2001- 02 to FY
2002- 03 is the result of these adjustments and an overall softening of the economy.
City of Martinez Page 15
Other revenue sources that generate at least $ 100,000 annually and comprise 14% of the General Fund budget are listed below.
Sales and Use Tax – Public Safety
This is a one- half cent sales tax received from the County based on our local sales tax and is earmarked for local public safety. This
revenue is estimated to increase at the same rate as our regular sales tax revenue. Projected revenues are $ 389,765 for FY 2005- 06
and $ 401,458 for FY 2006- 07.
Water System In- Lieu Tax
This tax is assessed to the water district as “ rent” to cover the cost of using the City’s infrastructure. This revenue is projected to rise
by 5% in FY 2005- 06 to $ 334,995, and 5% in FY 2006- 07 to $ 351,745.
Documentary Transfer Tax
The documentary transfer tax is based on the transfer of ownership of real estate. The City shares in the $ 1.10 tax that is collected by
the County. This revenue source is projected to increase by 5% over current year’s revenues to $ 262,500 in FY 2005- 06, and by
another 5% to $ 275,625 in FY 2006- 07. This projected increase can be attributed to the overall increased value of properties within
City limits.
Transient Occupancy Tax
The transient occupancy tax is a 10% tax imposed by the City on hotel and motel room charges. The revenue for this fiscal year is
expected to remain flat at $ 250,000 in FY 2005- 06 and increase slightly to $ 255,000 in FY 2006- 07.
Business License Tax
The business license tax is imposed on businesses for the privilege of conducting business within the City. This revenue source is
estimated to increase by 2.5% in FY 2005- 06 to $ 460,000 and by 2% in FY 2006- 07 to $ 470,000.
Building Permits
Building permit fees are collected to cover the cost of regulating the construction of new buildings. This regulation allows cities the
means to protect the overall community interests. Building permit revenue is estimated at $ 370,200 in FY 2005- 06 and $ 414,600 in
FY 2006- 07.
City of Martinez Page 16
Parking Citations
This includes fines for parking violations. The annual revenue is estimated at $ 171,000 in each of the next two years.
Interest Income
This is the interest the City earns on investment of its funds. The City invests in the State investment pool referred to as the Local
Agency Investment Fund ( LAIF). Interest income of $ 250,000 is projected for the next fiscal two years as interest rates are expected
to remain constant.
Daycare Fees
These fees are collected to offset the cost of providing contract child daycare services. This revenue is expected to decrease to
approximately $ 130,000 for both years.
Enterprise Funds
The City’s Enterprise Funds include the Water System, Marina, and Parking Services funds. Each is financed and operated in a
manner similar to a private business, and receives its revenues primarily through user fees.
Water System Fund
Water Sales: The City has four elevation zones and each zone has a consumption rate charge of between $ 2.65 and $ 3.00 per hundred
cubic feet, based on the customer’s meter above mean sea level. This consumption charge represents water sales, which is estimated
at $ 5,579,000 for both budget years.
Service Charges: Monthly service charges are based on the size of the customer’s meter. 92% of the City’s 9,800 meters are 5/ 8 of an
inch with a charge of $ 19. The balance of meters is between 1 to 10 inches, with the charges between $ 45 and $ 2,490. Service
charges are projected at $ 3,200,000 for the next two years.
Fire Service Charges: This charge is for water system capacity to supply water to automatic fire protection systems. Approximately
100 accounts benefit from this service and revenue is approximately $ 290,000 each year.
Other revenues: The balance of revenues for the water system amount to $ 519,660, which includes interest income, backflow charges,
connection fees and other miscellaneous revenue.
Marina Fund
Revenues to the Marina fund include lease payments, sales and property taxes, and a State loan for capital improvement projects.
Revenue is estimated at $ 163,319 for 2005- 06 and $ 166,747 in 2006- 07.
City of Martinez Page 17
Parking Services Fund
Parking Services Fund revenue is generated from parking meters and estimated to be $ 390,000 in 2005- 06 and $ 392,000 in 2006- 07.
Other revenues in the Parking Fund amount to $ 82,700 in 2005- 06 and $ 91,800 in 2006- 07.
Special Revenue Funds
Special revenue funds account for revenue sources that are legally restricted to specific purposes and listed below are each fund’s
revenue source.
Cops Grants
These are State and Federal grants received by the Police Department for improvements in public safety technology and other special
projects. The City will receive $ 291,164 in 2005- 06 and at this time there are no grants budgeted in 2006- 07.
National Pollution Discharge Elimination System ( NPDES)
The City participates in the Contra Costa County Flood Control and Water Conservation District for the collection, administration,
distribution and expenditure of funds derived from stormwater utility assessments. The assessment is collected by the County Tax
Collector with the property tax. The revenue received from the assessment is used for pollution control improvements, and drainage
system maintenance. Revenue is projected at $ 540,000 for both years.
Transportation
These funds are a combination of State and Federal grants and Local Measure C funds that provide congestion relief through a
combination of capital improvements, and transportation network and growth management. Local Measure C funds are local revenue
used to leverage State and Federal contributions available for transportation projects and are projected to be $ 486,000 for each of the
next two years.
Gasoline Tax
Gasoline tax is a tax on each gallon of fuel used to propel a motor vehicle or aircraft. The gasoline tax revenue is distributed to cities
using several formulas. These funds must be used exclusively for engineering costs, maintenance and repair, and capital improvement
projects related to City streets. The City of Martinez will receive an estimated $ 709,200 in gas tax revenue in 2005- 06 and $ 724,500
in 2006- 07.
City of Martinez Page 18
Lighting and Landscaping
Revenue comes from an annual levy on property owners within the Lighting and Landscaping Assessment districts that is collected
with property taxes. Revenue is projected at $ 122,831 for each of the next two years.
Mitigation/ Impact Fees
Fees are collected from developers to mitigate the impact of new development. The total projected revenue is estimated at $ 124,000
for each of the next two years.
City of Martinez Page 19
KEY BUDGET ASSUMPTIONS
A number of assumptions were used to develop the 2- year operating budget. These assumptions will be carefully monitored
throughout the budget period, and adjusted as necessary during the budget cycle. The key budget assumptions for the 2- year budget
include both revenues and expenditures.
Revenue Assumptions
􀂉 Property Tax revenues are expected to increase by 5% in both FY 2005- 06 and FY 2006- 07. These growth assumptions are
representative of the region- wide surge in real estate values as a result of home sales and are based on historical trends of assessed
valuation growth for the City of Martinez, and input from the County Assessor’s Office.
􀂉 Sales Tax revenues will increase by approximately 6% in FY 2005- 06 and 3% in FY 2006- 07. These projections are based on
trend and input from the City’s sales tax consultant.
􀂉 Motor Vehicle In- Lieu Tax revenues were based on the State assessing 2% on the value on car registrants on behalf of local
governments. Beginning in FY 2004- 05, local governments are now receiving .67% of assessed value with the difference being
made up in a new allocation of property tax referred to as “ VLF Property Tax Swap.” The City has calculated a 2% increase on
the Motor Vehicle In- Lieu Tax for both fiscal years and a 4% increase on the VLF Property Tax Swap revenue.
􀂉 Franchise Fee Revenues are expected to grow by 16% in FY 2005- 06 over the current year in anticipation of a new cable franchise
agreement, but will remain relatively the same in FY 2006- 07.
􀂉 Other major general fund tax revenues such as Business License Tax, Documentary Transfer Tax, and Transient Occupancy Tax
are expected to increase between 2% and 3%.
􀂉 Revenues from Police Services and Fines & Forfeitures are expected to remain relatively the same in both fiscal years.
Expenditure Assumptions
􀂉 Salary increases for all employee groups are anticipated for both budget years based upon the provisions of each bargaining unit’s
MOU.
􀂉 Employer PERS contribution rates for Police Sworn personnel are budgeted at 24.63% in FY 2005- 06 and 25% in FY 2006- 07.
Employer PERS contribution rates for miscellaneous personnel are budgeted at 10.1% in the first year and 10.3% in the second
year. These figures are based on estimates from PERS.
􀂉 Healthcare costs are expected to increase by 15% in both fiscal years, with medical costs for retirees over 65 years of age
increasing by 45% in the first budget year and 30% in the second year.
City of Martinez Page 20
􀂉 Worker’s Compensation rates are projected to decrease in FY 2005- 06 to $ 601,245 due to significant reduction in claims over the
past several years. For FY 2006- 07 the City calculated a 5% increase to $ 630,152 based on an increase in rates.
􀂉 Liability insurance has been budgeted in FY 2005- 06 at $ 403,685. The City estimated a 5% increase for FY 2006- 07 at $ 423,000.
􀂉 A vehicle- purchasing reduction will be instituted for FY 2005- 06, resulting in total savings of $ 213,000 the first year and $ 199,000
the second year as compared to the current fiscal year.
City of Martinez Page 21
LONG- TERM DEBT
The City of Martinez has a capital financing and debt management policy that sets the parameters for issuing debt and provides
guidance in the timing and structuring of long- term debt commitments. This policy can be found under Appendix E. The City
of Martinez’s total long- term debt obligations are listed below. These schedules contain audited numbers from the June 30,
2004 Comprehensive Annual Financial Report. Audited numbers for 2005 were not yet available at the time this budget was
prepared.
The legal debt limit as of June 30, 2004, based on the total assessed value of all real and personal property of $ 3,352,491,393
and the debt limit percentage of 15%, per Government Code 25 and 43605, was $ 502,873,709. The debt margin available as of
June 30, 2004 was $ 502,873,709. Below is a chart of the Assessed Value of taxable property for the last five years.
Fiscal Total
Year Unsecured Secured Assessed
2000 87,049,640 2,436,784,325 2,523,833,965
2001 103,657,475 2,640,208,257 2,743,865,732
2002 112,004,636 2,879,599,484 2,991,604,120
2003 118,371,038 2,990,800,498 3,109,171,536
2004 138,013,747 3,214,477,646 3,352,491,393
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
2000 2001 2002 2003 2004
Unsecured Secured
5 Year Assessed Valuation of Taxable Property
City of Martinez Page 22
Bonds
1999 Certificates of Participation
On August 1, 1999, the City issued Certificates of Participation ( COPs) in the amount of $ 6,040,000 to fund and retire the
construction of various improvements to the City’s existing municipal water system. The bonds are rated AAA by Standard &
Poor’s with interest ranging from 4.2% to 5.375%. Interest and principal payments are payable from net revenues derived
from the operation of the Water System.
Year Ending June 30, Principal Interest Total
2005 $ 145,000 $ 291,919 $ 436,919
2006 150,000 285,724 435,724
2007 155,000 279,241 434,241
2008 160,000 272,389 432,389
2009 170,000 265,044 435,044
2010 175,000 257,172 432,172
2011 185,000 248,731 433,731
2012 195,000 239,609 434,609
2013 200,000 229,930 429,930
2014 210,000 219,677 429,677
2015- 2019 1,240,000 917,664 2,157,664
2020- 2024 1,605,000 542,289 2,147,289
2025- 2029 1,185,000 97,691 1,282,691
Total $ 5,775,000 $ 4,147,080 $ 9,922,080
City of Martinez Page 23
2003 Certificates of Participation
On March 11, 2003, the City issued Certificates of Participation ( COPs) in the amount of $ 7,795,000 to refund and retire the
outstanding 1992 City Hall Refurbishment COPs and the 1993 Water System Improvements COPs. The bonds are rated AAA
by Standard & Poor’s with interest ranging from 2% to 4%. Interest and principal payments are payable from lease revenues
on City Hall and net revenues derived from the operation of the water system.
General Fund Water System Total
Year Ending June 30, Principal Interest Principal Interest
2005 $ 195,000 $ 59,256 $ 295,000 $ 166,370 $ 715,626
2006 200,000 55,306 300,000 160,420 715,726
2007 200,000 51,306 300,000 154,420 705,726
2008 205,000 47,256 310,000 148,320 710,576
2009 215,000 42,516 315,000 141,282 713,798
2010- 2014 1,185,000 106,254 1,730,000 550,678 3,571,932
2015- 2019 2,055,000 206,367 2,261,367
Total $ 2,200,000 $ 361,894 $ 5,305,000 $ 1,527,857 $ 9,394,751
Loans Payable
State of California
The City entered into agreements on three separate occasions with the State of California to fund various projects at the
Marina. The three loans are as follows:
In January of 1960, a loan of $ 1,300,000 was granted to the City for the construction of a Marina.
On December 20, 1973, a loan of $ 450,000 was granted to the City to complete a small craft harbor at the Marina.
City of Martinez Page 24
On January 14, 1983, a loan of $ 770,425 was granted to the City to fund twelve capital improvements projects at the Marina.
The above loan agreements, except the 1960 loan which has no specific repayment terms, require the Marina to remit
approximately $ 170,000 per year for each of the subsequent five years for debt service, and additional amounts thereafter.
However, the Marina did not make any principal or interest payments on the above loans between fiscal 1996 and fiscal 2004.
During fiscal year ended June 30, 2004, accrued interest was added to the outstanding principal for all the state loans with the
exception of the 1960 loan. The City and State are currently in negotiations to amend these loan agreements. Subsequent to
fiscal year end 2004, the City made an interest payment in August 2004.
Budget for Fiscal Years 2005- 06 and 2006- 07
ALL FUNDS BUDGET SUMMARY
2005- 06 2006- 07
Budget Budget Transfers Budget Budget Transfers
Fund Balance Revenues Appropriations In( Out) Fund Balance Revenues Appropriations In( Out) Fund Balance
at 6/ 30/ 05 05/ 06 05/ 06 05/ 06 at 6/ 30/ 06 06/ 07 06/ 07 06/ 07 at 6/ 30/ 07
General Fund $ 4,716,667 $ 1 6,484,258 $ 1 6,403,395 $ ( 779,276) $ 4 ,018,254 $ 1 7,195,063 $ 1 7,168,432 $ ( 610,431) $ 3 ,434,454
Enterprise Funds
Water System 6,420,548 9,568,025 11,784,993 ( 114,815) 4,088,765 9,580,225 11,828,294 ( 110,632) 1,730,064
Marina ( 3,463,163) 163,319 157,228 ( 3,457,072) 166,747 166,191 ( 3,456,516)
Parking Services 361,297 472,700 470,547 363,450 483,800 480,950 366,300
Sub- total of Enterprise Funds 3,318,682 10,204,044 12,412,767 ( 114,815) 995,144 10,230,772 12,475,435 ( 110,632) ( 1,360,152)
Special Revenue Funds
COPS Grants 65,774 291,164 256,938 100,000 0 100,000 ( 0)
NPDES 8,715 540,000 468,881 ( 50,000) 29,834 540,000 477,391 ( 50,000) 42,443
Transportation 438,308 486,000 182,947 ( 713,825) 27,536 486,000 184,001 ( 187,494) 142,041
Gas Tax 372,014 709,200 483,677 ( 200,000) 397,537 724,500 495,638 ( 200,000) 426,399
Lighting & Landscape 205,994 122,831 94,983 233,842 122,831 95,973 260,700
Mitigation/ Impact Fees 921,738 124,000 0 1,045,738 124,000 0 1,169,738
Sub- total of Special Revenue 2,012,543 2,273,195 1,487,426 ( 963,825) 1,834,487 1,997,331 1,353,003 ( 437,494) 2,041,320
Capital Improvement Programs 0 2,047,660 3,176,485 1,128,825 0 4,789,500 5,331,994 542,494 0
Internal Service Funds
Equipment Replacement 1,375,857 966,667 929,690 1,412,833 966,667 945,977 1,433,524
Information Systems 322,868 356,675 356,675 322,868 391,677 391,677 322,868
Sub- total of Internal Service 1,698,725 1,323,342 1,286,366 0 1,735,701 1,358,344 1,337,654 0 1,756,392
Debt Service 212,000 57,306 257,306 12,000 241,306 253,306 0
Totals $ 11,958,617 $ 3 2,389,805 $ 35,023,745 $ ( 729,091) * $ 8,595,586 $ 35,812,316 $ 37,919,824 $ ( 616,063) * $ 5,872,014
* This net transfer out balance is the amount transferred from General Fund and Water System to
General Fund Designated Fund Balance for Retiree Health Benefits, Insureance and future Pension Obligations.
City of Martinez Page 25
Budget for Fiscal Years 2005- 06 and 2006- 07
SUMMARY OF ALL FUNDS REVENUE
FISCAL YEAR 2005- 06 FISCAL YEAR 2006- 07
General Fund 49.15% 16,484,258 General Fund 47.27% 17,195,063
Enterprise Funds 30.49% 10,224,679 Enterprise Funds 28.18% 10,251,407
Special Revenue Funds 6.78% 2,273,195 Special Revenue Funds 5.49% 1,997,331
Internal Service Funds 3.95% 1,323,342 Internal Service Funds 3.73% 1,358,344
Capital Projects 9.47% 3,176,485 Capital Projects 14.66% 5,331,994
Debt Service 0.17% 57,306 Debt Service 0.66% 241,306
Total All Funds $ 33,539,265 Total All Funds $ 36,375,445
General Fund Enterprise Funds
Special Revenue Funds Internal Service Funds
Capital Projects Debt Service
General Fund Enterprise Funds
Special Revenue Funds Internal Service Funds
Capital Projects Debt Service
City of Martinez Page 26
Budget for Fiscal Years 2005- 06 and 2006- 07
SUMMARY OF ALL FUNDS REVENUE
Capital
Fiscal Year 2005- 06 General Enterprise Special Internal Service Improvement Debt Service
Fund Funds Revenue Funds Funds Program Fund Totals
Taxes $ 13,743,107 $ 52,955 $ 0 $ 0 $ 0 $ 0 $ 13,796,062
Special Assessments 659,326 659,326
Licenses & permits 443,700 443,700
Fines, forfeits & penalties 344,000 344,000
Intergovernmental 706,113 1,477,864 2,047,660 4,231,637
Charges for services 672,689 984,555 124,000 1,323,342 57,306 3,161,892
Use of money & property 288,900 322,364 12,005 623,269
Water Sales & Service 8,779,000 8,779,000
Other Revenue 285,749 65,170 350,919
Total Revenues 16,484,258 10,204,044 2,273,195 1,323,342 2,047,660 57,306 32,389,805
Transfers From Other Funds 20,635 1,128,825 1,149,460
Total Revenues Including Transfers In $ 16,484,258 $ 10,224,679 $ 2,273,195 $ 1,323,342 $ 3,176,485 $ 57,306 $ 33,539,265
Capital
Fiscal Year 2006- 07 General Enterprise Special Internal Service Improvement Debt Service
Fund Funds Revenue Funds Funds Program Fund Totals
Taxes $ 14,644,683 $ 55,483 $ 0 $ 0 $ 0 $ 0 $ 14,700,166
Special Assessments 659,326 659,326
Licenses & permits 491,100 491,100
Fines, forfeits & penalties 344,000 344,000
Intergovernmental 721,316 1,202,000 4,789,500 6,712,816
Charges for services 597,680 990,755 124,000 1,358,344 241,306 3,312,085
Use of money & property 288,900 340,364 12,005 641,269
Water Sales & Service 8,779,000 8,779,000
Other Revenue 107,384 65,170 172,554
Total Revenues 17,195,063 10,230,772 1,997,331 1,358,344 4,789,500 241,306 35,812,316
Transfers From Other Funds 20,635 542,494 563,129
Total Revenues Including Transfers In $ 17,195,063 $ 10,251,407 $ 1,997,331 $ 1,358,344 $ 5,331,994 $ 241,306 $ 36,375,445
City of Martinez Page 27
Budget for Fiscal Years 2005- 06 and 2006- 07
SUMMARY OF ALL FUNDS EXPENDITURES
FISCAL YEAR 2005- 06 FISCAL YEAR 2006- 07
General Fund 46.56% 17,182,671 General Fund 45.47% 17,778,863
Enterprise Funds 34.00% 12,548,217 Enterprise Funds 32.24% 12,606,702
Special Revenue Funds 6.64% 2,451,251 Special Revenue Funds 4.58% 1,790,497
Internal Service Funds 3.49% 1,286,366 Internal Service Funds 3.42% 1,337,654
Capital Projects 8.61% 3,176,485 Capital Projects 13.64% 5,331,994
Debt Service 0.70% 257,306 Debt Service 0.65% 253,306
Total All Funds $ 36,902,296 Total All Funds $ 39,099,016
General Fund Enterprise Funds
Special Revenue Funds Internal Service Funds
Capital Projects Debt Service
General Fund Enterprise Funds
Special Revenue Funds Internal Service Funds
Capital Projects Debt Service
City of Martinez Page 28
Budget for Fiscal Years 2005- 06 and 2006- 07
SUMMARY OF ALL FUNDS EXPENDITURES
Capital
Fiscal Year 2005- 06 General Enterprise Special Internal Service Improvement Debt Service
Fund Funds Revenue Funds Funds Program Fund Totals
General Government $ 1,238,168 $ 1,238,168
Nondepartmental Services 983,254 983,254
Administrative Services 729,044 356,675 1,085,719
Building 869,539 869,539
Police 8,375,575 256,938 8,632,513
Community Development 4,207,815 1,230,488 929,690 6,367,994
Water System 7,984,849 7,984,849
Marina 157,228 157,228
Parking Services 470,547 470,547
Capital Improvement Program 2,900,000 3,176,485 6,076,485
Debt Service 900,144 257,306 1,157,450
Total Expenditures 16,403,395 12,412,767 1,487,426 1,286,366 3,176,485 257,306 35,023,745
Transfers To Other Funds 779,276 135,450 963,825 1,878,551
Total Expenditures Including Transfers Out $ 17,182,671 $ 12,548,217 $ 2,451,251 $ 1,286,366 $ 3,176,485 $ 257,306 $ 36,902,296
Capital
Fiscal Year 2006- 07 General Enterprise Special Internal Service Improvement Debt Service
Fund Funds Revenue Funds Funds Program Fund Totals
General Government $ 1,291,849 $ 1,291,849
Nondepartmental Services 1,116,058 1,116,058
Administrative Services 762,051 391,677 1,153,728
Building 899,453 899,453
Police 8,740,937 100,000 8,840,937
Community Development 4,358,083 1,253,003 945,977 6,557,063
Water System 8,185,633 8,185,633
Marina 166,191 166,191
Parking Services 480,950 480,950
Capital Improvement Program 2,750,000 5,331,994 8,081,994
Debt Service 892,661 253,306 1,145,967
Total Expenditures 17,168,432 12,475,435 1,353,003 1,337,654 5,331,994 253,306 37,919,824
Transfers To Other Funds 610,431 131,267 437,494 1,179,192
Total Expenditures Including Transfers Out $ 17,778,863 $ 12,606,702 $ 1,790,497 $ 1,337,654 $ 5,331,994 $ 253,306 $ 39,099,016
City of Martinez Page 29
Budget for Fiscal Years 2005- 06 and 2006- 07
ALL FUNDS TRANSFER SUMMARY
Budgeted Budgeted Budgeted
Transfer Transfer Transfer
2004/ 05 2005/ 06 2006/ 07
To Fund From Fund Purpose
Water System General Fund Funding of Lifeline for Water $ 18,000 $ 20,635 $ 20,635
Lighting & Landscape General Fund City's share of LLD 5,500
Sub- Total 23,500 20,635 20,635
Capital Improvement Program General Fund Fund Capital Projects 355,000 165,000 105,000
Capital Improvement Program NPDES Fund Capital Projects 50,000 50,000 50,000
Capital Improvement Program Transportation Fund Capital Projects 24,536 713,825 187,494
Capital Improvement Program Gas Tax Fund Capital Projects 236,213 200,000 200,000
Sub- Total 665,749 1 ,128,825 542,494
GF Designated Reserves General Fund Insurance 125,000
GF Designated Reserves General Fund Future Pension Obligations 100,000 150,000
GF Designated Reserves General Fund Retiree Health Benefits 559,493 368,641 334,796
GF Designated Reserves Water System Retiree Health Benefits 135,450 131,267
Sub- Total 559,493 729,091 616,063
TOTAL INTERFUND TRANSFERS $ 1,248,742 $ 1,878,551 $ 1,179,192
City of Martinez Page 30
SUMMARY OF POSITIONS
BUDGETED BUDGETED BUDGETED BUDGETED
2003- 04 2004- 05 2005- 06 2006- 07
GENERAL GOVERNMENT
City Manager 1.0 1.0 1.0 1.0
Secretary to City Manager 1.0 1.0 1.0 1.0
Deputy City Clerk 1.0 1.0 1.0 1.0
Economic Development & Special Proj. Director 0.0 1.0 1.0 1.0
3.0 4.0 4.0 4.0
ADMINISTRATIVE SERVICES
Administrative Services Director 1.0 1.0 1.0 1.0
Management Analyst 1.0 1.0 1.0 1.0
Personnel Technician 1.0 1.0 1.0 1.0
Finance Manager 1.0 1.0 1.0 1.0
Accountant 1.0 1.0 1.0 1.0
Senior Account Clerk 2.0 2.0 2.0 2.0
Account Clerk III 1.0 1.0 1.0 1.0
Account Clerk II 2.0 2.0 2.0 2.0
Information Systems Specialist 1.0 1.0 1.0 1.0
11.0 11.0 11.0 11.0
BUILDING DEPARTMENT
Building Director 1.0 1.0 1.0 1.0
Chief Building Inspector 1.0 1.0 1.0 1.0
Construction Inspector 1.0 1.0 1.0 1.0
Code Enforcement Inspector 1.0 1.0 1.0 1.0
Building Inspector II 2.0 2.0 2.0 2.0
Permit Technician II 1.0 1.0 1.0 1.0
7.0 7.0 7.0 7.0
POLICE DEPARTMENT
Police Chief 1.0 1.0 1.0 1.0
Police Commander 2.0 2.0 2.0 2.0
Police Sergeant 5.0 5.0 5.0 5.0
City of Martinez
Page 31
BUDGETED BUDGETED BUDGETED BUDGETED
2003- 04 2004- 05 2005- 06 2006- 07
POLICE DEPARTMENT CON'T
Police Officer 31.0 31.0 31.0 31.0
Support Services Supervisor 1.0 1.0 1.0 1.0
Lead Police Clerk/ Dispatcher 1.0 1.0 1.0 1.0
Police Clerk Dispatcher 6.0 6.0 6.0 6.0
Administrative Secretary 1.0 1.0 1.0 1.0
Evidence/ Property Technician 1.0 1.0 1.0 1.0
Police Assistant 5.0 4.0 4.0 4.0
Records Clerk 2.0 2.0 2.0 2.0
56.0 55.0 55.0 55.0
COMMUNITY DEVELOPMENT DEPARTMENT
Community Development Director 1.0 1.0 1.0 1.0
Planning Manager 1.0 1.0 1.0 1.0
Management Analyst 1.0 0.0 0.0 0.0
Administrative Aide III 3.0 3.0 3.0 3.0
Senior Planner 1.0 1.0 1.0 1.0
Planning Technician 1.0 1.0 1.0 1.0
City Engineer 1.0 1.0 1.0 1.0
Senior Civil Engineer 1.0 1.0 1.0 1.0
Associate Civic Engineer 1.0 1.0 1.0 1.0
Junior Civil Engineer 1.0 1.0 1.0 1.0
Public Works Superintendent 1.0 1.0 1.0 1.0
Maintenance Supervisor 2.0 2.0 2.0 2.0
Maintenance Lead Worker 3.0 3.0 3.0 3.0
Maintenance Worker II 5.0 5.0 5.0 5.0
Maintenance Worker I 3.0 3.0 3.0 3.0
Equipment Mechanic 2.0 2.0 2.0 2.0
Account Clerk II 1.0 1.0 1.0 1.0
Senior Custodian 1.0 1.0 1.0 1.0
Park Supervisor 1.0 1.0 1.0 1.0
Park Lead Caretaker 3.0 3.0 3.0 3.0
Park Caretaker II 2.0 2.0 2.0 2.0
City of Martinez
Page 32
BUDGETED BUDGETED BUDGETED BUDGETED
2003- 04 2004- 05 2005- 06 2006- 07
COMMUNITY DEVELOPMENT CON'T
Park Caretaker I 2.0 2.0 2.0 2.0
Deputy Director of Recreation 1.0 1.0 1.0 1.0
Recreation Supervisor 1.0 1.0 1.0 1.0
Senior Citizen Supervisor 1.0 1.0 1.0 1.0
Senior Citizen Coordinator 0.8 0.8 0.8 0.8
41.8 40.8 40.8 40.8
WATER SYSTEM
Water Superintendent 1.0 1.0 1.0 1.0
Assistant Water Superintendent 1.0 1.0 1.0 1.0
Senior Meter Service Worker 1.0 1.0 1.0 1.0
Meter Service Worker 1.0 1.0 1.0 1.0
Meter Repair Worker 1.0 1.0 1.0 1.0
Senior Instrument Technician 1.0 1.0 1.0 1.0
Instrument Technician 1.0 1.0 1.0 1.0
Water Operations Supervisor 1.0 1.0 1.0 1.0
Water Plant Operator II 2.0 2.0 2.0 2.0
Water Plant Operator I 3.0 3.0 3.0 3.0
13.0 13.0 13.0 13.0
PARKING
Parking Meter Technician 0.0 0.0 1.0 1.0
0.0 0.0 1.0 1.0
TOTAL PERSONNEL 131.8 130.8 131.8 131.8
City of Martinez
Page 33
Budget for Fiscal Years 2005- 06 and 2006- 07
2004/ 05 2005/ 06 2006/ 07
Budget Budget Budget
Revenues $ 16,023,684 $ 16,484,258 $ 1 7,195,063
Expenditures 15,959,883 16,403,395 1 7,168,432
Excess of Revenues/( Expenditures) 63,801 80,863 26,631
Transfer to Designated Reserves:
Retiree Benefits ( 559,493) ( 368,641) ( 334,796)
Future Pension Obligation ( 100,000) ( 150,000)
Insurance ( 125,000)
Total transfers to Designated Reserves ( 559,493) ( 593,641) ( 484,796)
Transfers to Capital Projects:
Capital Projects for Paving ( 250,000) ( 150,000) ( 105,000)
Capital Projects for 911 Memorial ( 5,000) ( 15,000)
Capital Projects for Open Slide Repairs ( 100,000)
Total transfers to Capital Projects ( 355,000) ( 165,000) ( 105,000)
Transfers to Other Funds:
Water System for Lifeline ( 18,000) ( 20,635) ( 20,635)
Lighting & Landscape ( 5,500)
Total transfers to Other Funds ( 23,500) ( 20,635) ( 20,635)
Total Transfers ( 937,993) ( 779,276) ( 610,431)
Beginning Undesignated Fund Balance 5,590,859 4,716,667 4 ,018,254
Ending Undesignated Fund Balance $ 4,716,667 $ 4,018,254 $ 3,434,454
GENERAL FUND - FUND BALANCE
City of Martinez Page 34
Budget for Fiscal Years 2005- 06 and 2006- 07
GENERAL FUND REVENUES
FISCAL YEAR 2005- 06 FISCAL YEAR 2006- 07
Taxes 83.37% 13,743,107 Taxes 85.17% 14,644,683
License, Permits & Fees 2.69% 443,700 License, Permits & Fees 2.86% 491,100
Fines & Forfeitures 2.09% 344,000 Fines & Forfeitures 2.00% 344,000
Intergovernmental 4.28% 706,113 Intergovernmental 4.19% 721,316
Charges for Services 4.08% 672,689 Charges for Services 3.48% 597,680
Use of Money & Property 1.75% 288,900 Use of Money & Property 1.68% 288,900
Other Revenue 1.73% 285,749 Other Revenue 0.62% 107,384
Total General Fund $ 16,484,258 Total General Fund $ 17,195,063
Taxes License, Permits & Fees
Fines & Forfeitures Intergovernmental
Charges for Services Use of Money & Property
Other Revenue
Taxes License, Permits & Fees
Fines & Forfeitures Intergovernmental
Charges for Services Use of Money & Property
Other Revenue
City of Martinez Page 35
Budget for Fiscal Years 2005- 06 and 2006- 07
GENERAL FUND - REVENUES
2003/ 04 2004/ 05 2005/ 06 2006/ 07
Actual Projected Budget Budget
Taxes
4111 Property Tax $ 5 ,072,309 $ 5 ,300,000 $ 5 ,565,000 $ 5 ,843,250
4199 State Tax Shift $ ( 400,069) $ ( 399,067)
4200 Sales & Use Tax 3 ,683,973 3 ,000,000 3 ,000,000 3 ,090,000
4201 Sales Tax In- Lieu 8 89,286 1 ,133,954 1 ,167,973
4331 VLF Property Tax Swap 1 ,971,541 2 ,018,225 2 ,058,590
4310 Document Transfer Tax 2 40,425 2 50,000 2 62,500 2 75,625
4320 Transient Occupancy Tax 2 52,147 2 50,000 2 50,000 2 55,000
4410 Business License Tax 4 03,405 4 48,900 4 60,000 4 70,000
4420 Franchise Fees 9 62,045 9 63,968 1 ,117,500 1 ,132,500
4613 Water System In- Lieu Tax 3 09,750 3 19,043 3 34,995 3 51,745
Total Taxes $ 1 0,924,054 $ 1 2,992,669 $ 1 3,743,107 $ 1 4,644,683
License, Permit & Fees
4430 Building Permits 2 76,303 2 50,177 3 70,200 414,600
4430.1 Accela Software Fee 1 9,373 0 7 ,500 7,500
4440 Mechanical Permits 6 0,048 4 5,000 6 6,000 6 9,000
Total License, Permit & Fees $ 3 55,725 $ 2 95,177 $ 4 43,700 $ 4 91,100
Fines & Forfeitures
4781 Court Fines 8 4,078 1 60,620 8 0,000 8 5,000
4782 Traffic Safety Fund 0 4 2,000 5 0,000 4 5,000
4783 Parking Citations 1 24,537 1 24,000 1 71,000 1 71,000
4785 Tow Releases 1 0,000 1 5,000 1 5,000
4868 Abandon Vehicle 2 8,135 2 8,000 2 8,000
Total Fines & Forfeitures $ 2 36,750 $ 3 36,620 $ 3 44,000 $ 3 44,000
City of Martinez Page 36
Budget for Fiscal Years 2005- 06 and 2006- 07
2003/ 04 2004/ 05 2005/ 06 2006/ 07
Actual Projected Budget Budget
Intergovernmental Agencies
4211 Public Safety Sales Tax Prop 172 $ 3 65,934 $ 3 74,774 $ 3 89,765 $ 4 01,458
4330 Motor Vehicle- In- Lieu VLF 1 ,686,776 7 85,133 1 75,498 1 79,008
4335 Off Highway $ 1 ,206 1 ,200 1 ,200
4340 Homeowners Property Tax Relief $ 7 4,269 7 5,000 7 5,000
4521 State Grant- POST Reimbursement 7 ,976 5 7,650 5 7,650
4530 State Mandates 5 ,000 5 ,000
4531.1 Bulletproof Vest Grant 2 ,000 2 ,000
4635 Booking Fees Reimbursement 7 5,102 7 6,000
4535.6 CDBG Grant 2 5,000
4860 State Grants 1 0,411
Total Intergovernment Revenues $ 2 ,221,673 $ 1 ,260,907 $ 7 06,113 $ 7 21,316
Charges for Service
4450 Planning Fees 77,207 62,400 97,300 107,100
4621 Public Works Inspections 61,853 50,000 148,109 57,500
4622 Engineering Plan Check Fees 84,900 52,000 64,200 67,200
4631 Police Services 52,677 58,000 40,000 40,000
4643 General Recreation Fees 4 4,730 3 0,276 3 0,280 3 0,280
4643.1 Recreation Class Fees 3 5,779 1 4,120 3 6,000 3 6,000
4644.1 Sports Programs 4 7,961 4 9,480 5 0,500 5 0,500
4644.2 Swimming Pool 4 3,408 2 0,240 4 3,500 4 3,500
4644.3 Tournament Revenue 1 ,189 5 ,060 5 ,000 5 ,000
4649 Day Care Fees 1 63,831 1 72,200 1 30,000 1 30,000
4651 Planning Plan Check Fees 2 5,618 1 5,600 2 7,800 3 0,600
Total Charges for Services $ 6 39,153 $ 5 29,376 $ 6 72,689 $ 5 97,680
City of Martinez Page 37
Budget for Fiscal Years 2005- 06 and 2006- 07
2003/ 04 2004/ 05 2005/ 06 2006/ 07
Actual Projected Budget Budget
Use of Money & Property
4642 Park Rental Fees 2 5,527 2 0,240 $ 3 0,000 $ 3 0,000
4648 Concession 3 ,305 3 ,036 3 ,300 3 ,300
4701 Interest Income 1 33,264 2 75,000 2 50,000 2 50,000
4750 Rental Income 2 ,182 1 ,000 1 ,000 1 ,000
4751 Senior Center Rental 3 ,802 4 ,600 4 ,600 4 ,600
4760 Sale of Property 1 75,000
Total Use of Money & Property $ 1 68,080 $ 4 78,876 $ 2 88,900 $ 2 88,900
Other Revenue
4460 Bond Fees $ 1 0,387 $ 3 ,268 $ 5 ,000 $ 5 ,000
4614 Water Systen Admin Fee 7 9,236 8 2,405 8 5,701 8 9,129
4624 Solid Waste 5 71 1 6,731 6 00 6 00
4650 Maps & Publications 9 36 3 00 3 00 3 00
4770 Miscellaneous Revenue 1 ,233 3 55 3 55 3 55
4775 Refunds and Rebates 1 3,609 5 ,000 5 ,000 5 ,000
4775.2 Workers Comp/ Liability Rebate 6 5,251 1 5,000 1 81,793
4776 Restitution, Damage & Recoveries 1 ,357
4802 Donations & Contributions 3 2,284 7 ,000 7 ,000 7 ,000
Total Other Revenue $ 2 04,864 $ 1 30,059 $ 2 85,749 $ 1 07,384
Sub- total Operating Revenues $ 1 4,750,300 $ 1 6,023,684 $ 1 6,484,258 $ 1 7,195,063
4001 Transfers In 150,000
TOTAL REVENUE GENERAL FUND $ 14,900,300 $ 1 6,023,684 $ 16,484,258 $ 17,195,063
City of Martinez Page 38
Budget for Fiscal Years 2005- 06 and 2006- 07
GENERAL FUND EXPENDITURES
FISCAL YEAR 2005- 06 FISCAL YEAR 2006- 07
General Government 7.21% 1,238,168 General Government 7.27% 1,291,849
Non- Departmental 5.72% 983,254 Non- Departmental 6.28% 1,116,058
Administrative Services 4.24% 729,044 Administrative Services 4.29% 762,051
Building 5.06% 869,539 Building 5.06% 899,453
Police 48.74% 8,375,575 Police 49.16% 8,740,937
Community Development 24.49% 4,207,815 Community Development 24.51% 4,358,083
Transfers Out 4.54% 779,276 Transfers Out 3.43% 610,431
Total General Fund $ 17,182,671 Total General Fund $ 17,778,863
General Government Non- Departmental
Administrative Services Building
Police Community Development
Transfers Out
General Government Non- Departmental
Administrative Services Building
Police Community Development
Transfers Out
City of Martinez Page 39
Budget for Fiscal Years 2005- 06 and 2006- 07
GENERAL FUND EXPEDITURES BY DEPARTMENT
2003/ 04 2004/ 05 2005/ 06 2006/ 07
Actual Budget Budget Budget
0100101 City Council 226,328 255,834 260,637 294,815
0100102 City Clerk 82,864 118,442 160,648 163,702
0100103 City Treasurer 7,630 11,208 12,136 12,855
0100104 City Manager 301,419 317,667 366,751 376,916
0100105 City Attorney 173,202 145,873 112,257 112,842
0100106 Economic Development 0 30,363 325,739 330,720
Total General Government Expenditures 791,443 879,387 1,238,168 1,291,849
0100201 General Services 185,557 238,606 200,150 212,150
0100202 Franchise 77,175 79,058 104,228 100,269
0100203 Contingencies 0 23,936 176,000 232,000
0100204 Retiree Benefits 320,438 387,938 502,875 571,639
Total Non- departmental Expenditures 583,170 729,538 983,254 1,116,058
0100401 Administration 129,866 153,502 140,348 143,293
0100402 Personnel 87,880 109,982 142,976 151,110
0100404 Finance 360,667 377,750 445,719 467,648
Total Administrative Services Expenditures 578,413 641,234 729,044 762,051
0100502 Inspection 533,188 594,836 748,055 774,153
0100503 Code Enforcement 85,057 119,012 121,484 125,300
Total Building Department Expenditures 618,245 713,848 869,539 899,453
0100601 Police Administration 1,052,989 1,286,612 1,133,598 1,240,040
0100602 Investigative Services 1,246,118 1,322,126 1,237,620 1,280,890
0100603 Support Services 1,046,894 1,174,067 1,257,665 1,290,304
0100604 Traffic Enforcement - Patrol 50,783 292,016 411,736 424,358
0100605 Field Services - Patrol 3,909,148 4,007,801 4,310,756 4,481,145
0100607 Emergency Services 49,264 23,027 24,200 24,200
Total Police Department Expenditures 7,355,196 8,105,649 8,375,575 8,740,937
City of Martinez Page 40
Budget for Fiscal Years 2005- 06 and 2006- 07
2003/ 04 2004/ 05 2005/ 06 2006/ 07
Actual Budget Budget Budget
0100701 Community Development 239,467 170,490 124,244 137,476
0100702 Economic Development 327,515 448,289 0 0
0100703 Planning 540,417 648,104 491,860 509,263
0100704 Engineering 269,049 292,190 312,389 324,265
0100710 Traffic Control Maintenance 285,671 274,265 259,126 264,675
0100712 Street Lighting 320,928 346,427 388,059 402,607
0100720 Parks/ Grounds Maintenance 888,288 997,153 1,061,343 1,092,322
0100723 Cemetary Maintenance 2,282 5,680 31,572 32,645
0100724 Open Space Maintenance 58,949 61,611 60,642 61,775
0100730 Public Facilities Maintenance 269,763 210,709 130,987 134,020
0100790 City Hall Building Maintenance * 0 0 0 0
0100791 Maintenance Services 0 0 178,894 187,117
0100801 Community Services Admininstrion 401,946 446,361 322,068 347,903
0100802 Cultural & Arts 102,532 250,416 106,295 108,735
0100803 General Recreation 73,241 68,102 75,118 75,274
0100804 Municipal Swimming Pool 93,401 134,740 159,936 166,092
0100805 Amphitheatre 108,978 38,250 8,250 8,250
0100806 Day Care 136,651 136,450 111,160 111,924
0100808 Sports Programs 86,175 71,680 76,699 71,873
0100809 Senior Center Programs 245,601 280,284 300,297 312,967
0108091 Alzheimer Respite 7,173 9,025 8,877 8,900
Total Community Development 4,458,028 4,890,226 4,207,815 4,358,083
Total General Fund Operating 14,384,495 15,959,883 16,403,395 17,168,432
Transfers Out 1,336,189 937,993 779,276 610,431
Total General Fund Expenditures &
Transfers 15,720,684 16,897,876 17,182,671 17,778,863
* City Hall Building Maintenance costs are distributed among the departments located in City Hall.
City of Martinez Page 41
Budget for Fiscal Years 2005- 06 and 2006- 07
Actual Actual Actual Actual Actual Actual Actual Projected Budget Budget
Description 1997/ 98 1998/ 99 1999/ 00 2000/ 01 2001/ 02 2002/ 03 2003/ 04 2004/ 05 2005/ 06 2006/ 07
Property Taxes 3,439,598 3,675,351 4,056,308 4,454,216 4,435,184 4,591,561 5,072,309 5,300,000 5,565,000 5,843,250
State Tax Shift - ERAF III ( 400,069) ( 399,067)
Sales Tax 2,544,735 2,926,623 3,106,403 2,537,196 3,730,588 2,981,530 3,683,973 3,889,286 4,133,954 4,257,973
Other Taxes 1,623,587 1,986,516 1,880,881 2,006,208 2,113,322 2,149,411 2,167,772 4,203,452 4,443,220 4,543,460
Licenses, Permits and Fees 405,338 549,101 557,888 545,180 380,802 381,300 355,725 295,177 443,700 491,100
Fines & Forfeitures 173,354 234,651 189,891 229,903 280,697 387,676 236,750 336,620 344,000 344,000
Intergovernmental Agencies 2,115,300 2,042,852 2,681,056 2,717,372 2,823,289 3,307,920 2,221,673 1,260,907 706,113 721,316
Charges for Services 519,973 564,653 617,432 612,675 674,532 593,072 639,153 529,376 672,689 597,680
Use of Money and Property 316,618 304,588 260,653 505,929 373,688 232,712 168,080 478,876 288,900 288,900
Other Revenue 670,370 461,909 1,237,199 416,762 456,243 264,157 204,864 130,059 285,749 107,384
Total Operating 11,808,873 12,746,244 14,587,711 14,025,441 15,268,345 14,889,339 14,750,300 16,023,684 16,484,258 17,195,063
Transfer In from Other Funds 14,272 9,476 9,023 6,000 8,093 213,318 150,000
Total General Fund Revenues 11,823,145 12,755,720 14,596,734 14,031,441 15,276,438 15,102,657 14,900,300 16,023,684 16,484,258 17,195,063
GENERAL FUND 10 YEAR HISTORY OF REVENUES
City of Martinez
Page 42
Budget for Fiscal Years 2005- 06 and 2006- 07
Actual Actual Actual Actual Actual Actual Actual Projected Budget Budget
Description 1997/ 98 1998/ 99 1999/ 00 2000/ 01 2001/ 02 2002/ 03 2003/ 04 2004/ 05 2005/ 06 2006/ 07
General Government 934,287 1,010,819 1,111,298 1,419,168 981,212 801,417 791,443 879,387 1,238,168 1,291,849
Non Departmental 712,652 911,277 643,098 450,757 672,191 1,157,970 583,170 729,538 983,254 1,116,058
Admistrative Services 0 0 0 0 596,745 402,692 578,413 641,234 729,044 762,051
Community Development 925,618 1,013,765 961,277 1,304,433 4,182,718 4,171,614 4,458,028 4,890,226 4,207,815 4,358,083
Community Services 1,018,023 923,099 918,710 1,117,326 0 0 0 0 0 0
Public Works 1,525,922 1,418,354 1,384,804 1,445,886 0 0 0 0 0 0
Building Department 0 0 0 0 580,976 609,678 618,245 713,848 869,539 899,453
Police Services 5,273,968 5,777,093 5,793,758 5,924,990 6,505,642 7,255,249 7,355,196 8,105,649 8,375,575 8,740,937
Total Operating 10,390,470 11,054,407 10,812,945 11,662,560 13,519,484 14,398,620 14,384,495 15,959,883 16,403,395 17,168,432
Transfer To Other Funds 369,323 759,175 496,095 422,772 765,575 731,846 1,336,189 937,993 779,276 610,431
Total General Fund Expenditures 10,759,793 11,813,582 11,309,040 12,085,332 14,285,059 15,130,466 15,720,684 16,897,876 17,182,671 17,778,863
Note: The General Fund 10 Year History reflects reorganization of City Departments implemented in 2001/ 02.
1. Prior to 2001/ 02 Administrative Services was included in General Government.
2. Starting in 2001/ 02 Community Services and Public Works is included in Community Development.
3. Prior to 2001/ 02 Building Department was part of Community Development.
4. Starting in 2005/ 06 Economic Development was moved from Community Development to General Government.
GENERAL FUND 10 YEAR HISTORY OF EXPENDITURES
City of Martinez
Page 43
City of Martinez Page 44
GENERAL FUND FOUR YEAR BUDGET PROJECTIONS
2007- 08 TO 2010- 11
Revenues
􀂉 Property tax revenues will increase 5% per year based on the assumption that assessed valuations will rise as people continue to
move farther away from the Bay Area, thereby increasing home sales in Contra Costa County.
􀂉 Water system in lieu tax is expected to increase at the same rate as property taxes ( 5% for each year), and the VLF property tax
swap will increase 4% each year.
􀂉 Sales tax, sales and use tax for public safety, documentary transfer tax, vehicle in lieu tax, and transient occupancy tax are
projected to increase by 3% annually.
􀂉 Licenses and permits, fines and forfeits, current fees, income from use of property, and other miscellaneous revenues are also
expected to increase by 3% per year.
􀂉 Intergovernmental will increase 3% for public safety sales tax, and 2% for motor vehicle in lieu and homeowners property tax
relief. All other intergovernmental revenues are projected to remain unchanged.
Expenditures
􀂉 Salaries increase is based on current MOU provisions and employee merit increases.
􀂉 Health benefits are projected to increase 15% annually.
􀂉 PERS employer rates ( from PERS Actuarial):
2005- 2006 2006- 2007 2007- 2008 2008- 2009 2009- 2010 2010- 2011
Sworn 24.63% 25.00% 32.7% 37.3% 37.0% 37.0%
Misc JFA 10.10% 10.30% 11.3% 11.3% 11.3% 11.3%
Misc City $ 61,910 $ 61,762 $ 61,762 $ 61,762 $ 61,762 $ 61,762
Non- salary/ benefit operating expenditures increase by CPI rate projected to be 3%. One- time expenditures are not included in future
year projections.
Budget for Fiscal Years 2005- 06 and 2006- 07
2004/ 05 2005/ 06 2006/ 07 2007/ 08 2008/ 09 2009/ 10 2010/ 11
Projections Budget Budget Projected Projected Projected Projected
REVENUE
Taxes 12,992,669 13,743,107 14,644,683 15,217,184 15,813,653 16,435,145 17,082,767
Licenses, Permits & Fees 295,177 443,700 491,100 505,833 521,008 536,638 552,737
Fines & Forfeitures 336,620 344,000 344,000 354,320 364,950 375,898 387,175
Intergovernmental 1,260,907 706,113 721,316 730,814 748,425 766,513 785,090
Charges for Services 529,376 672,689 597,680 615,610 634,079 653,101 672,694
Use of Money & Property 478,876 288,900 288,900 297,567 306,494 315,689 325,159
Other Revenue 130,059 285,749 107,384 110,396 113,488 116,673 119,954
Total Revenue 16,023,684 16,484,258 17,195,063 17,831,724 18,502,096 19,199,657 19,925,577
EXPENDITURES
General Government 879,387 1,238,168 1,291,849 1,208,201 1,260,238 1,314,980 1,372,606
Nondepartmental 729,538 983,254 1,116,058 1,259,555 1,404,213 1,574,142 1,774,265
Administrative Services 641,234 729,044 762,051 803,267 845,722 890,808 938,719
Community Development 4,890,226 4,207,815 4,358,083 4,425,588 4,621,045 4,826,914 5,043,921
Police Services 8,105,649 8,375,575 8,740,937 9,015,534 9,588,696 10,217,433 10,908,806
Building Department 713,848 869,539 899,453 940,821 983,387 1,028,217 1,075,459
Total Expenditures 15,959,883 16,403,395 17,168,432 17,652,966 18,703,302 19,852,494 21,113,775
Operating Surplus ( Deficit) 63,801 80,863 26,631 178,758 ( 201,205) ( 652,837) ( 1,188,197)
UNDESIGNATED FUND BALANCE
Beginning Balance 5,592,088 4,716,667 4,018,254 3,434,454 3,211,737 2,607,616 1,599,145
Transfer to Capital Improvements ( 355,000) ( 165,000) ( 105,000)
Funding of Lifeline for Water ( 18,000) ( 20,635) ( 20,635) ( 20,635) ( 20,635) ( 20,635) ( 20,635)
Transfers In( Out) Other Funds ( 5,500)
Rent at 636 Ward Street * ( 45,840) ( 47,280)
Transfer to Designated Reserves ( 559,493) ( 593,641) ( 484,796) ( 335,000) ( 335,000) ( 335,000) ( 335,000)
Undesignated Fund Balance 4,716,667 4,018,254 3,434,454 3,211,737 2,607,616 1,599,145 55,312
DESIGNATED FUND BALANCE
Catastrophes 300,000 300,000 300,000 300,000 300,000 300,000 300,000
Contingencies 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Retiree Health Benefits 3,025,965 3,530,056 3,996,119 4,386,119 4,776,119 5,166,119 5,556,119
Future Pension Obligations 100,000 250,000 250,000 250,000 250,000 250,000
Insurance 125,000 125,000 125,000 125,000 125,000 125,000
Deferred Maintenance- City Hall 111,855 111,855 111,855 111,855 111,855 111,855 111,855
Designated Fund Balance 3,537,820 4,266,911 4,882,974 5,272,974 5,662,974 6,052,974 6,442,974
Total Undesignated & Designated 8,254,487 8,285,165 8,317,428 8,484,711 8,270,590 7,652,119 6,498,286
* Rent is included in operating for 2004- 07.
GENERAL FUND PROJECTIONS
City of Martinez Page 45
Budget for Fiscal Years 2005- 06 and 2006- 07
DEBT SERVICE FUND - REVENUE
2003/ 04 2004/ 05 2005/ 06 2006/ 07
Actual Projected Budget Budget
Debt Service ( 41)
4031 Transfers In 73,714 0 0
4701 Interest Income 57
4755 Rental Charges- City 475,753 61,407 57,306 241,306
Total Debt Service $ 549,524 $ 6 1,407 $ 57,306 $ 241,306
City of Martinez Page 46
Budget for Fiscal Years 2005- 06 and 2006- 07
DEBT SERVICE - EXPENDITURES
2003/ 04 2004/ 05 2005/ 06 Increase 2006/ 07 Increase
Actual Projected Budget ( Decrease) Budget ( Decrease)
Debt Service
40 2003 COP - CITY HALL
Operating 5,090 2,150 2,000 ( 150) 2,000
Debt Service 69,504 254,257 255,306 1,049 251,306 ( 4,000)
TOTAL 1992 COP - CITY HALL 74,594 256,407 257,306 899 253,306 ( 4,000)
40 CA ENERGY COMMISSION
Operating 4,149
Direct & Indirect Costs
TOTAL CA ENERGY COMMISSION 4,149
TOTAL DEBT SERVICE FUNCTION 78,743 256,407 257,306 899 253,306 ( 4,000)
City of Martinez
Page 47
General Government
City Clerk
( elected)
Economic Development/
Special Projects
City Manager
City Council
( elected)
City Treasurer
( elected)
City of Martinez Page 48
City Council
Establish City goals and policies
City Manager
Policy Development
Policy Implementation
Direction/ Leadership of City Staff
Economic Development
New Business Promotion
Downtown Revitalization DEPARTMENT STAFFING
Community Coordination Authorized Positions 2003- 04 2004- 05 2005- 06 2006- 07
Manage Special Projects City Manager 1.0 1.0 1.0 1.0
City Clerk Secretary to City Manager 1.0 1.0 1.0 1.0
City Records Management Deputy City Clerk 1.0 1.0 1.0 1.0
Community Meetings Liaison Economic Development Director 0.0 1.0 1.0 1.0
Conduct Elections 3.0 4.0 4.0 4.0
City Attorney
Legal Advice and Representation
City Treasurer
Integrity/ Fidelity of City Finances
General Government
The General Government group supports all City programs. Programs within this section provide
overall operational management, policy direction, economic development, public meeting and
record administration, legal services, and a variety of non- departmental services. Functional areas
of General Government include the City Council, City Manager, Economic Development, City
Clerk, City Attorney ( a contracted service), and City Treasurer. The City Council, including the
Mayor, City Clerk and City Treasurer, are elected positions. Authorized positions in this area
include the City Manager, Economic Development Director, Secretary to the City Manager, and
Deputy City Clerk.
City of Martinez Page 49
City of Martinez Page 50
GENERAL GOVERNMENT
CITY COUNCIL
The Martinez City Council is comprised of the Mayor and four Council Members who are each elected at- large for four- year terms.
The Council is responsible for representing the residents of Martinez, providing policy and programmatic direction to the City
Manager and City organization, and ensuring staff accountability for carrying out policies responsive to the needs of the community.
The Council held a goal- setting session to establish the City’s priorities for the budget period, in which they identified a number of
overarching principles. The principles set for the next two years were to retain and enhance the City’s small town character and strong
sense of community; to continue to preserve the City’s history to the community’s advantage; to enhance the City’s image to attract
more investors and visitors; to work toward a stronger, more diverse local economy; and to expand opportunities for outdoor
recreation.
The following goals and objectives were identified for the 2005- 07 budget period:
2005- 2007 GOALS AND OBJECTIVES
Enhance Marina Area
• Select and enter into a contract with a new marina operator
• Review and where necessary, update the master plan and business plan
• Remove the old pier
• Start the permitting process for the new breakwater and dredging and identify funding sources for implementation of those
improvements
Revitalize Downtown
• Complete and adopt the Downtown Specific Plan
• Underground the overhead utilities on Marina Vista
• Assess the feasibility of a new parking structure on existing surface parking lots
• Move the City Corporation Yard out of the Downtown
City of Martinez Page 51
CITY COUNCIL 2005- 2007 GOALS AND OBJECTIVES ( CONTINUED)
Move Forward on the John Muir Festival Center
• The JMFC Committee to start construction of the new theater
• Complete improvements to the John Muir amphitheatre
Vote on formation of Redevelopment Agency
• Hold election
Update Emergency Response Plan
• Complete and approve the updated plan
• Identify those implementation measures that are the highest priority and most feasible
2005- 2007 BUDGET HIGHLIGHTS
􀂉 $ 14,500 reduction in Professional/ Technical Services each year due to savings on printing fees for the City Newsletter and shifting
postage expenses to General Services
􀂉 $ 5,000 transfer from Reserves for contribution to First Night each year
City of Martinez Page 52
CITY MANAGER
It is the responsibility of the City Manager to assist the City Council in developing and evaluating policies that meet the needs of
Martinez residents and customers, to ensure effective implementation of adopted policies, and to provide direction and leadership to
the City government staff. The City Manager’s significant accomplishments in 2003- 05 include providing leadership and/ or direct
management for the following key projects and programs in support of the 2003- 05 goals of the City Council:
2003- 2005 ACCOMPLISHMENTS
• Maintained a quality police force to ensure a safe community
• Maintained prudent management of the City’s finances
• Improved worker’s compensation and liability insurance rates
• Enhanced economic development and hired an Economic Development Director
• Improved Code Enforcement
• Constructed major improvements to the Marina
• Leased building at 636 Ward Street for cabaret theater run by the Willows Theatre Company
• Implemented a new parking meter program
• Completed a community- wide survey and introduced a bond measure for various community improvements
The City Manager’s specific objectives directly support the 2005- 07 goals of the City Council:
2005- 2007 KEY OBJECTIVES
• Complete long term lease for the Marina
• Continue an aggressive economic development program
• Complete the Downtown Specific Plan
• Working with the JMFC, complete retrofit of 636 Ward Street
• Complete acquisition and transfer of 630 Court Street
• Update Emergency Response Plan
• Monitor Rental Inspection Program
• Develop long- term strategy for enhancement and preservation of the City swimming pool
• Continue to address homeless issues
City of Martinez Page 53
CITY MANAGER 2005- 2007 KEY OBJECTIVES ( CONTINUED)
• Maintain and improve customer service and communications with the community
• Utilize the City website to convey useful information to the public
City of Martinez Page 54
ECONOMIC DEVELOPMENT
Economic Development focuses on downtown revitalization, strengthening the local economy and promoting Martinez as a
destination for new businesses, visitors, and investors. These efforts are strengthened through coordination with local business
organizations, property owners, and business owners. A new position, Economic Development Director, was created to bolster the
City’s efforts in this regard. The functions of Economic Development were formerly staffed and budgeted in the Community
Development Department.
2003- 2005 ACCOMPLISHMENTS
• Assisted in the opening of 12 new businesses, including several downtown restaurants and retail establishments
• Received a Community Development Block Grant ( CDBG) to fund a Façade Improvement Program
• Provided informational workshops and held an advisory vote to gauge citizen support for establishment of a Redevelopment
Agency
2005- 2007 KEY OBJECTIVES
• Continue working to revitalize downtown
• Continue to attract and promote new and diverse businesses
• Assist the JMFC/ Willows Theatre with conversion of 636 Ward Street for live theater
• Manage special projects
2005- 2007 BUDGET HIGHLIGHTS
􀂉 $ 50,000 transfer from Reserves to Contributions/ Promotions each year for Chamber of Commerce
􀂉 $ 50,000 transfer from Reserves in FY 2005- 06 and $ 30,000 transfer from Reserves in FY 2006- 07 to Contributions/ Promotions
for Main Street Martinez
􀂉 $ 30,000 transfer from Reserves to Professional/ Technical Services each year for Events Coordinator
City of Martinez Page 55
CITY CLERK
The Martinez City Clerk, who is elected at- large and serves in a part- time capacity, is the formal guardian of public information,
administers oaths of office, and verifies all resolutions and ordinances.
The Deputy City Clerk, a full- time staff position, is responsible for ensuring the security and accessibility of all official City records;
serving as the information and records manager of all legislative proceedings; conducting all aspects of municipal elections; and
serving as a support office to the City Clerk, City Council, City Manager and staff, City boards and commissions, and the residents of
Martinez. During the period FY 2003- 05, the City Clerk:
• Completed Phase One of the Laserfiche digital records storage system which included all minutes, resolutions, and ordinances
• Conducted regular and special elections in November 2004
2005- 2007 BUDGET HIGHLIGHTS
􀂉 $ 14,000 reduction in Temporary Salaries each year
􀂉 $ 9,600 increase in Professional/ Technical Services each year
􀂉 $ 6,500 increase in Other Services in FY 2005- 06 in anticipation of special election
CITY ATTORNEY
The City Attorney provides the City Council, City Manager, and all City programs with the legal advice and representation they
request or require in order to provide service to the public. The City Attorney also is responsible for advising or taking appropriate
steps to reduce the risks of various City activities, and for assisting in the administration and enforcement of laws, regulations, and
City programs. The City Attorney’s regular duties include: representing the City in legal matters and providing advice as requested on
a variety of issues and concerns; attending City Council meetings to provide expert counsel, clarification, and interpretation; and
providing information and assistance to City staff as needed to support program and service delivery efforts. City Attorney services
are provided to the City of Martinez on a contractual basis.
2005- 2007 BUDGET HIGHLIGHTS
􀂉 $ 10,000 reduction in Legal Services each year
City of Martinez Page 56
CITY TREASURER
The City Treasurer, a part- time elected official of the City of Martinez, is charged with ensuring the integrity and fidelity of City
finances and signing all checks issued by the City.
NONDEPARTMENTAL SERVICES
This budget group accounts for expenditures that are not based in a specific program. No positions are allocated here.
GENERAL SERVICES
This budget includes general operating supplies and equipment such as postage, telephone charges and contracted maintenance and
repair.
FRANCHISE ADMINISTRATION
Expenditures related to the City’s solid waste, recycling, and cable television franchises are budgeted here.
RETIRED EMPLOYEES
This is the budget for the current year cost of the retired employees’ medical benefit.
CONTINGENCY
Funds have been designated for unknown but anticipated budget increases.
2005- 2007 BUDGET HIGHLIGHTS
􀂉 $ 115,000 increase in Retiree Benefits in FY 2005- 06; $ 184,000 increase in FY 2006- 07
􀂉 $ 52,000 reduction in General Services Professional/ Technical Services each year
􀂉 $ 8,000 increase in Franchise Administration Professional/ Technical Services for additional recycling programs needed to meet the
City’s recycling quota
Budget for Fiscal Years 2005- 06 and 2006- 07
GENERAL GOVERNMENT EXPENDITURES
2003/ 04 2004/ 05 2005/ 06 Increase 2006/ 07 Increase
Actual Projected Budget ( Decrease) Budget ( Decrease)
General Government
01 101 CITY COUNCIL
Labor 73,740 80,887 93,352 12,465 100,142 6,790
Operating 193,989 187,862 174,186 ( 13,677) 177,666 3,480
Direct & Indirect Costs ( 41,402) ( 12,915) ( 6,900) 6,015 17,007 23,907
TOTAL CITY COUNCIL 226,328 255,834 260,637 4,803 294,815 34,177
01 103 CITY TREASURER
Labor 9,913 11,813 12,733 920 13,540 808
Operating 462 1,510 1,545 35 1,583 38
Direct & Indirect Costs ( 2,745) ( 2,115) ( 2,142) ( 27) ( 2,268) ( 127)
TOTAL CITY TREASURER 7,630 11,208 12,136 928 12,855 719
01 104 CITY MANAGER
Labor 365,140 384,492 401,147 16,655 405,082 3,936
Operating 36,214 50,043 39,165 ( 10,878) 40,280 1,114
Direct & Indirect Costs ( 99,935) ( 116,868) ( 73,561) 43,307 ( 68,446) 5,115
TOTAL CITY MANAGER 301,419 317,667 366,751 49,084 376,916 10,165
01 102 CITY CLERK
Labor 107,142 129,002 121,605 ( 7,397) 125,457 3,851
Operating 34,688 55,071 67,990 12,919 65,439 ( 2,552)
Direct & Indirect Costs ( 58,966) ( 65,631) ( 28,948) 36,683 ( 27,193) 1,754
TOTAL CITY CLERK 82,864 118,442 160,648 42,206 163,702 3,054
City of Martinez
Page 57
Budget for Fiscal Years 2005- 06 and 2006- 07
2003/ 04 2004/ 05 2005/ 06 Increase 2006/ 07 Increase
Actual Projected Budget ( Decrease) Budget ( Decrease)
01 105 CITY ATTORNEY
Labor
Operating 252,034 235,504 225,640 ( 9,864) 225,997 357
Direct & Indirect Costs ( 78,832) ( 89,631) ( 113,382) ( 23,751) ( 113,155) 227
TOTAL CITY ATTORNEY 173,202 145,873 112,257 ( 33,616) 112,842 585
01 106 ECONOMIC DEVELOPMENT
Labor 30,363 162,716 132,353 167,140 4,424
Operating 163,023 163,023 163,580 558
Direct & Indirect Costs
TOTAL ECONOMIC DEVELOPMENT 30,363 325,739 295,376 330,720 4,981
TOTAL GENERAL GOVERNMENT 791,443 879,387 1,238,168 358,781 1,291,849 53,681
City of Martinez
Page 58
Budget for Fiscal Years 2005 - 2006 and 2006 - 2007
NONDEPARTMENTAL EXPENDITURES
2003/ 04 2004/ 05 2005/ 06 Increase 2006/ 07 Increase
Actual Projected Budget ( Decrease) Budget ( Decrease)
Nondepartmental
01 201 GENERAL SERVICES
Operating 315,090 362,164 180,150 ( 182,014) 192,150 12,000
Capital 20,000 20,000 20,000
Direct & Indirect Costs ( 129,532) ( 143,558) 143,558
TOTAL GENERAL SERVICES 185,557 238,606 200,150 ( 38,456) 212,150 12,000
01 202 FRANCHISE ADMINISTRATION
Labor
Operating 74,555 74,300 78,450 4,150 73,950 ( 4,500)
Capital
Direct & Indirect Costs 2,620 4,758 25,778 21,020 26,319 541
TOTAL FRANCHISE ADMINISTRATION 77,175 79,058 104,228 25,170 100,269 ( 3,959)
01 204 RETIRED EMPLOYEES
Labor 20,000 61,910 41,910 61,762 ( 148)
Operating 320,438 367,938 440,966 73,028 509,877 68,912
TOTAL RETIRED EMPLOYEES 320,438 387,938 502,875 114,937 571,639 68,764
01 203 CONTINGENCY
Labor 18,936 140,000 121,064 150,000 10,000
Operating 5,000 36,000 31,000 82,000 46,000
TOTAL CONTINGENCY 23,936 176,000 152,064 232,000 56,000
TOTAL NONDEPARTMENTAL 583,170 729,538 983,254 253,716 1,116,058 132,805
City of Martinez Page 59
Administrative Services Department
Administration Personnel Finance Information Systems
Administrative Services Department
City of Martinez Page 60
Administration
Risk Management/ Safety Program
Contract/ Franchise Agreements
Citywide Policies and Programs DEPARTMENT STAFFING
Personnel Authorized Positions 2003- 04 2004- 05 2005- 06 2006- 07
Recruitments Administrative Services Director 1.0 1.0 1.0 1.0
Employee Benefits Management Analyst 1.0 1.0 1.0 1.0
Labor Relations Personnel Technician 1.0 1.0 1.0 1.0
Finance Finance Manager 1.0 1.0 1.0 1.0
Payroll Accountant 1.0 1.0 1.0 1.0
Billing and Collections Senior Account Clerk 2.0 2.0 2.0 2.0
Accounts Payable and Receiveable Account Clerk III 1.0 1.0 1.0 1.0
Financial Audits and Reports Account Clerk II 2.0 2.0 2.0 2.0
Budget Preparation and Analysis Information Systems Specialist 1.0 1.0 1.0 1.0
Business Licenses 11.0 11.0 11.0 11.0
Information Systems
Computer Support
Telephones and Data Accessories
City Website
The Administrative Services Department is charged with the overall administration of several City
programs, including Risk Management, Contract/ Franchise Agreements, Financial Management,
Human Resources, and Information Systems.
Administrative Services Department
City of Martinez Page 61
City of Martinez Page 62
ADMINISTRATION
The Administrative Services Department oversees Risk Management, Contract/ Franchise administration, City policies and programs,
the Safety Program, and State Mandated Services Reimbursement programs. The City participates in the Municipal Pooling Authority
of Northern California ( MPA) for its Risk Management programs. Administration directs the activities of finance, personnel, and
information systems for the City.
2003- 2005 ACCOMPLISHMENTS
• Successfully implemented all modules of the MUNIS Financial/ Human Resource software system on schedule and within budget
• Completed contract negotiations with the Martinez Police Officers’ Association
• Completed analyses and updated Impact Mitigation Fees, User Fees, and Cost Allocation Plan
• Reduced on the job injuries by 48% over the two- year period and received 2nd and 3rd level Safety Program Excellence awards
• Received excellence awards from GFOA and CSMFO for the City’s Comprehensive Annual Financial Report
• Received CSMFO awards for budget document and for public communication of the budget
• Developed a Bond Measure in November 2004 for funding of community facilities
• Released RFRP for cable franchise renewal and continued to participate in the informal negotiations process
• Published 6 new issues of the Martinez City Times Newsletter
• Developed an Administrative Policies Manual and distributed to the City’s management group
2005- 2007 KEY OBJECTIVES
• Complete cable franchise renewal negotiations
• Negotiate labor contracts with 2 bargaining units and update the Management Compensation Plan by December 2005
• Update safety procedures when necessary, conduct monthly safety inspections, and provide 6 safety training courses per year
• Prepare budgets and financial reports that provide meaningful information and meet State and national standards of excellence
• Monitor City’s leases and franchises to ensure compliance
• Update City administrative policies and procedures to reflect legislative changes
• Continue publishing 3 issues per year of the Martinez City Times Newsletter
• Continue to represent the City on the MPA Board of Directors
• Update actuarial analysis of retiree medical in preparation for GASB 45
2005- 2007 BUDGET HIGHLIGHTS
􀂉 $ 7,000 reduction in Professional/ Technical Services each year
City of Martinez Page 63
PERSONNEL
Personnel provides support services to all City departments including recruitment and examination, new employee orientations, labor
relations, employee benefit administration, worker’s compensation claims, staff training and development, and maintenance of official
personnel files. Personnel ensures that the City is in compliance with State and Federal laws, Civil Service Rules, City policy, and
various Memorandums of Understanding. The Division works closely with the MPA, of which the City is a member, coordinates with
ICMA, the City’s deferred compensation administrator, and CalPERS, the California Public Employees Retirement System.
2003- 2005 ACCOMPLISHMENTS
• Completed contract negotiations with the Martinez Police Officers’ Association
• Completed recruitments for 19 positions, including Deputy Director of Parks and Community Services, Economic
Development/ Special Projects Director, Finance Manager, Senior Civil Engineer, and Senior Planner
• Sponsored several Wellness events for City employees and increased attendance at the 2004 and 2005 annual Health Fairs by over
25% from the 2003 event
• Participated in the Bay Area Medical Review ( BAMR) group
• Completed implementation of the Human Resource management software system ( MUNIS)
2005- 2007 KEY OBJECTIVES
• Negotiate expiring labor contracts for two ( 2) bargaining units, and update management compensation plan by December 2005
• Provide continuous administrative, benefit, and recruitment support to all departments
• Sponsor Wellness events and activities and continue to increase attendance
• Develop an employee performance evaluation reporting system in MUNIS by October 2005
• Test the Applicant Tracking System in MUNIS
• Establish employee benefits group to consider benefit program and cost containment measures
2005- 2007 BUDGET HIGHLIGHTS
􀂉 No significant changes
City of Martinez Page 64
FINANCE
Finance prepares and monitors the biennial budget and Comprehensive Annual Financial Report ( CAFR), coordinates annual and
special audits, prepares annual State reports, issues fiscal status reports, and calculates the annual appropriation limit. Finance
provides support services to other departments including general accounting, budget preparation, accounts payable, accounts
receivable, payroll and employee benefits. Finance also administers the City’s treasury and revenue operations, debt service,
maintains the general ledger, issues business licenses and parking permits, administers job costing, staffs the public cashier counter,
and processes billing and collection of water customers. Additionally, Finance monitors the City’s capital improvement budget, and
coordinates major financing transactions for City capital projects.
2003- 2005 ACCOMPLISHMENTS
• Prepared GASB- 34 compliant CAFR
• Received excellence awards from GFOA and CSMFO for the City’s Comprehensive Annual Financial Report
• Received CSMFO awards for budget document and for public communication of the budget
• Completed implementation of all MUNIS financial software modules
• Strengthened internal controls and improved workflow and business processes with cross training of Finance staff
• Processed approximately 60,000 water billings and 3,200 building permit receipts
• Issued over 2,500 business license annual renewals and processed more than 100 new licenses and 400 quarterly renewals
• Initiated audit of business license tax
• Implemented new cost allocation methodology
2005- 2007 KEY OBJECTIVES
• Prepare GASB- 33 compliant CAFR beginning with FY 2004- 05
• Develop centralized finance file system by December 2005
• Develop improved management reports for crucial decision making by City management
• Complete RFP process for banking services by July 2006 and audit services by February 2007
• Review payroll module to improve tracking and reporting capabilities by Spring 2006
• Continue cross training of finance staff to ensure adequate coverage for essential functions
• Complete implementation of the City’s fixed assets into the financial software system
2005- 2007 BUDGET HIGHLIGHTS
􀂉 $ 15,000 reduction in Professional/ Technical Services each year
􀂉 $ 11,000 reduction in Temporary Salaries each year
City of Martinez Page 65
INFORMATION SYSTEMS
Information Systems supports, maintains and enhances citywide information services related to the Wide and Local Area Network
( WAN/ LAN), computer hardware and software, data communications, telecommunications and the City’s website. The Information
Systems budget, which is included in the Internal Service Funds section, provides for the City’s hardware, software and staff support
needs.
2003- 2005 ACCOMPLISHMENTS
􀂾 Completed implementation of the City’s Financial/ Human Resources management software system
􀂾 Implemented the City’s new website and achieved a Golden Web Award from the International Association of Web Masters and
Designers
􀂾 Created a page on City’s website with the general location of sex offenders registered in the City
􀂾 Replaced the City’s phone and voicemail systems
􀂾 Maintained 6 network servers, 100 workstations and 45 printers
􀂾 Provided desktop support and replaced outdated equipment
􀂾 Coordinated maintenance contracts with outside vendors for computer hardware and software and phone system support
2005- 2007 KEY OBJECTIVES
􀂾 Implement anti- spamming software for email system to help eliminate the threat of computer viruses by September 2005
􀂾 Keep network and email servers up to date on software releases and upgrades
􀂾 Update City’s Laserfische program to enable integration with the Police Departments records program by December 2005
􀂾 Update City’s financial server to latest Microsoft server operating system release by September 2005
􀂾 Update City’s financial software and train users on latest version by September 2005
􀂾 Support, maintain and enhance the City’s information technology hardware, software and communications infrastructure
􀂾 Provide desktop support and replace outdated equipment
􀂾 Coordinate maintenance contracts with outside vendors for computer hardware and software and the phone system
2005- 2007 BUDGET HIGHLIGHTS
􀂾 $ 30,300 reduction in Professional/ Technical Services each year
􀂾 $ 16,900 reduction in Repair and Maintenance Services in FY 2005- 06; $ 10,800 increase in FY 2006- 07
Budget for Fiscal Years 2005- 06 and 2006- 07
ADMINISTRATIVE SERVICES EXPENDITURES
2003/ 04 2004/ 05 2005/ 06 Increase 2006/ 07 Increase
Actual Projected Budget ( Decrease) Budget ( Decrease)
Administrative Services
01 401 ADMINISTRATION
Labor 211,856 231,364 253,512 22,148 256,120 2,608
Operating 18,257 42,198 28,826 ( 13,372) 29,770 944
Direct & Indirect Costs ( 100,247) ( 120,060) ( 141,989) ( 21,929) ( 142,597)