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CITY OF BRENTWOOD
OPERATING BUDGET
2005/ 06 – 2006/ 07 Operating Budget Page i
City Officials
Brian Swisher ............................................................................................................................... ... Mayor
Ana Gutierrez...................................................................................................................... ... Vice- Mayor
Annette Beckstrand ...................................................................................................... Council Member
Robert Brockman .......................................................................................................... Council Member
Robert Taylor ................................................................................................................ Council Member
Executive Team
Donna Landeros................................................................................................................... City Manager
Craig Bronzan ........................................................................................ Director of Parks & Recreation
Karen Chew......................................................................................................... Assistant City Manager
Tom Curry ............................................................................................................ Interim City Attorney
Mike Davies ............................................................................................................................ Police Chief
Pamela Ehler ........................................ City Treasurer / Director of Finance & Information Systems
Cynthia Garcia........................................................................................................... Interim City Clerk
Bailey Grewal ....................................................................................................................... City Engineer
Howard Sword ............................................................................ Director of Community Development
Paul Zolfarelli................................................................................................... Director of Public Works
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page ii
Budget Preface
City Officials and Administration ............................................................................................................................... .................................... i
Table of Contents ............................................................................................................................... ............................................................ ii
Budget Message ............................................................................................................................... ............................................................. xi
City Organizational Chart ............................................................................................................................... .......................................... xxvi
Community Services Location Map ............................................................................................................................... ......................... xxvii
Certificate of Award – GFOA ............................................................................................................................... ................................ xxviii
Certificate of Award – CSMFO ............................................................................................................................... ................................. xxix
Budget Documents ............................................................................................................................... ...................................................... xxx
Budget Policy ............................................................................................................................... .......................................................... xxxiii
Budget Development Process ............................................................................................................................... .................................. xxxiv
Budget Calendar ............................................................................................................................... ....................................................... xxxv
City Revenue Sources ............................................................................................................................... ............................................. xxxvii
City Expenditures ............................................................................................................................... .................................................... xxxix
Constitutional Spending Limits ............................................................................................................................... ..................................... xl
Significant Accounting Policies ............................................................................................................................... .................................... xli
Long- Term Debt ............................................................................................................................... ........................................................ xliii
Capital Improvement Budget Overview ............................................................................................................................... ..................... xlvi
Capital Improvement Program Summary ............................................................................................................................... ... xlviii
Non- Recurring Capital Costs ............................................................................................................................... ....................... xlvii
Capital Improvements for Fiscal Years 2005/ 06 and 2006/ 07 ...................................................................................................... xlix
Capital Improvement Program Revenue Summary ......................................................................................................................... liv
Capital Improvement Program Accomplishments ............................................................................................................................ lv
Resolution No. 2005- 143 ( Adopting the City’s Operating Budget for Fiscal Years 2005/ 06 – 2006/ 07) ......................................................................... lvi
Resolution No. 2005- 128 ( Establishing an Appropriations Limit) ........................................................................................................................ lvii
Annual Budget Summary ( All Funds) ............................................................................................................................... ................ 1
General Fund
Ten Year Projection ............................................................................................................................... .................................................... 11
Fund Balance ............................................................................................................................... ................................................................ 12
Revenue and Interfund Transfers Graph ............................................................................................................................... ....................... 14
Revenue Summary ............................................................................................................................... ......................................................... 15
Revenue Detail......................................................................................................................... ..................................................................... 16
Schedule of Interfund Transfers ............................................................................................................................... .................................... 22
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page iii
General Fund ( Cont.)
Expenditures Graph ............................................................................................................................... ...................................................... 23
Expenditure Summary ............................................................................................................................... .................................................. 24
Summary of Expenditures by Category ............................................................................................................................... ........................ 26
Personnel Services Expenditure Summary ............................................................................................................................... ................... 27
Supplies and Services Expenditure Summary ............................................................................................................................... .............. 29
Internal Service Expenditure Summary ............................................................................................................................... ........................ 31
Capital Outlay Expenditure Summary ............................................................................................................................... .......................... 33
Legislative ............................................................................................................................... ..................................................................... 35
City Administration
Organizational Chart ............................................................................................................................... ..................................................... 38
City Manager ............................................................................................................................... ................................................................ 42
City Clerk ............................................................................................................................... ...................................................................... 45
Human Resources ............................................................................................................................... ......................................................... 48
City Attorney
Organizational Chart ............................................................................................................................... ..................................................... 51
City Attorney ............................................................................................................................... ................................................................ 55
Finance and Information Systems
Organizational Chart ............................................................................................................................... ..................................................... 58
Administrative Services ............................................................................................................................... ................................................ 62
Purchasing ............................................................................................................................... ..................................................................... 65
Business Services ............................................................................................................................... .......................................................... 68
Financial Services ............................................................................................................................... ......................................................... 71
Non- Departmental ............................................................................................................................... ......................................................... 74
Community Services ............................................................................................................................... ..................................................... 77
Police
Organizational Chart ............................................................................................................................... ..................................................... 78
Police ............................................................................................................................... ............................................................................ 82
COPS Universal Hiring Grant ............................................................................................................................... ...................................... 86
COPS in School ............................................................................................................................... ............................................................ 87
Youth Diversion Program ............................................................................................................................... ............................................. 88
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page iv
Public Works – Street Maintenance Division
Organizational Chart ............................................................................................................................... ..................................................... 89
Street Maintenance ............................................................................................................................... ........................................................ 93
Community Development
Organizational Chart ............................................................................................................................... ..................................................... 97
Economic Development ............................................................................................................................... .............................................. 101
Building ............................................................................................................................... ...................................................................... 104
Planning ............................................................................................................................... ...................................................................... 107
Planning Commission ............................................................................................................................... ................................................. 110
Engineering
Organizational Chart ............................................................................................................................... ................................................... 112
Development Engineering ............................................................................................................................... .......................................... 116
Construction Inspection ............................................................................................................................... .............................................. 119
Traffic & Transportation ............................................................................................................................... ............................................. 122
NPDES ............................................................................................................................... ........................................................................ 125
Parks and Recreation
Organizational Chart ............................................................................................................................... ................................................... 128
Recreation Administration ............................................................................................................................... .......................................... 132
City Pool ............................................................................................................................... ..................................................................... 135
Park and Recreation Commission ............................................................................................................................... ............................... 138
Youth Commission ............................................................................................................................... ..................................................... 140
Park Planning ............................................................................................................................... .............................................................. 142
Cultural Arts ............................................................................................................................... ............................................................... 145
Community Center ............................................................................................................................... ...................................................... 147
Senior Programs ............................................................................................................................... .......................................................... 149
Sports ............................................................................................................................... .......................................................................... 152
Programs ............................................................................................................................... ..................................................................... 155
Landscape Operations ............................................................................................................................... ................................................. 158
Police Activity League ............................................................................................................................... ................................................ 161
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page v
Capital Improvement Program
Organizational Chart ............................................................................................................................... ................................................... 165
Summary ............................................................................................................................... ..................................................................... 169
Revenue and Expenditure Summary ............................................................................................................................... ........................... 170
Capital Improvement Program Administration ............................................................................................................................... ........... 171
Capital Improvement Program Project Services ............................................................................................................................... ......... 175
Roadway CIP Projects ............................................................................................................................... ................................................ 178
Community Facilities CIP Projects ............................................................................................................................... ............................. 179
Parks and Trails CIP Projects ............................................................................................................................... ..................................... 180
Drainage CIP Projects ............................................................................................................................... ................................................. 181
Solid Waste CIP Projects ............................................................................................................................... ............................................ 182
Water CIP Projects ............................................................................................................................... ...................................................... 183
Wastewater CIP Projects ............................................................................................................................... ............................................. 184
Parks and Recreation Enterprise
Revenue and Expense Summary ............................................................................................................................... ................................. 185
Recreation Administration ............................................................................................................................... .......................................... 186
City Pool ............................................................................................................................... ..................................................................... 187
Park and Recreation Commission ............................................................................................................................... ............................... 188
Youth Commission ............................................................................................................................... ..................................................... 189
Planning ............................................................................................................................... ...................................................................... 190
Community Center ............................................................................................................................... ...................................................... 191
Sports ............................................................................................................................... .......................................................................... 192
Programs ............................................................................................................................... ..................................................................... 193
Solid Waste Enterprise
Organizational Chart ............................................................................................................................... ................................................... 195
Ten Year Projection ............................................................................................................................... .................................................... 199
Net Assets ............................................................................................................................... ................................................................... 200
Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 201
Revenue and Expense Summary ............................................................................................................................... ................................. 202
Revenue Detail ............................................................................................................................... ............................................................ 203
Expense Detail ............................................................................................................................... ............................................................ 204
Operations ............................................................................................................................... ................................................................... 205
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page vi
Solid Waste Enterprise ( Cont.)
Utility Billing ............................................................................................................................... .............................................................. 209
Transfer Station ............................................................................................................................... ........................................................... 212
Water Enterprise
Organizational Chart ............................................................................................................................... ................................................... 217
Ten Year Projection ............................................................................................................................... .................................................... 221
Net Assets ............................................................................................................................... ................................................................... 222
Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 223
Revenue and Expense Summary ............................................................................................................................... ................................. 224
Revenue Detail ............................................................................................................................... ............................................................ 225
Expense Detail ............................................................................................................................... ............................................................ 226
Operations ............................................................................................................................... ................................................................... 227
Utility Billing ............................................................................................................................... .............................................................. 231
Non- Potable Water ............................................................................................................................... ...................................................... 234
Wastewater Enterprise
Organizational Chart ............................................................................................................................... ................................................... 237
Ten Year Projection ............................................................................................................................... .................................................... 241
Net Assets ............................................................................................................................... ................................................................... 242
Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 243
Revenue and Expense Summary ............................................................................................................................... ................................. 244
Revenue Detail ............................................................................................................................... ............................................................ 245
Expense Detail ............................................................................................................................... ............................................................ 246
Operations ............................................................................................................................... ................................................................... 247
Utility Billing ............................................................................................................................... .............................................................. 251
Lateral Maintenance ............................................................................................................................... .................................................... 254
City Rentals Enterprise
Organizational Chart ............................................................................................................................... ................................................... 257
Ten Year Projection ............................................................................................................................... .................................................... 261
Net Assets ............................................................................................................................... ................................................................... 262
Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 263
Revenue and Expense Summary ............................................................................................................................... ................................. 264
Revenue Detail ............................................................................................................................... ............................................................ 265
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page vii
City Rentals Enterprise ( Cont.)
CAM Main Rental ............................................................................................................................... ....................................................... 266
College Rental ............................................................................................................................... ............................................................. 268
Incubator Rental ............................................................................................................................... .......................................................... 270
Housing Enterprise
Organizational Chart ............................................................................................................................... ................................................... 273
Net Assets ............................................................................................................................... ................................................................... 277
Revenue and Expense Summary ............................................................................................................................... ................................. 278
Revenue Detail ............................................................................................................................... ............................................................ 279
Housing Administration ............................................................................................................................... .............................................. 280
Housing Rental ............................................................................................................................... ........................................................... 283
Special Revenue Funds
Reserves ............................................................................................................................... ...................................................................... 285
Revenue Summary ............................................................................................................................... ...................................................... 287
Expenditure Summary ............................................................................................................................... ................................................ 289
Revenue Detail ............................................................................................................................... ............................................................ 291
Gas Tax ............................................................................................................................... ....................................................................... 296
Economic Development ............................................................................................................................... .............................................. 297
Asset Forfeiture ............................................................................................................................... ........................................................... 298
Abandoned Vehicle Abatement ............................................................................................................................... .................................. 299
PEG Media ............................................................................................................................... .................................................................. 300
Measure C ............................................................................................................................... ................................................................... 301
City CIFP Capital ............................................................................................................................... ........................................................ 302
Police Grants ............................................................................................................................... ............................................................... 303
Other Grants ............................................................................................................................... ................................................................ 304
Water Facility ............................................................................................................................... ............................................................. 305
Roadway Improvements ............................................................................................................................... ............................................. 306
Parks & Trails ............................................................................................................................... ............................................................. 307
Storm Drain ............................................................................................................................... ................................................................. 308
Wastewater Facility ............................................................................................................................... .................................................... 309
Community Facilities ............................................................................................................................... .................................................. 310
Open Space ............................................................................................................................... ................................................................. 311
Facility Fee Administration ............................................................................................................................... ........................................ 312
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page viii
Special Revenue Funds ( Cont.)
Agriculture Administration ............................................................................................................................... ......................................... 313
Agriculture Land Trust ............................................................................................................................... ............................................... 315
Affordable Housing In- Lieu ............................................................................................................................... ....................................... 316
Public Art Administration ............................................................................................................................... ........................................... 317
Public Art Acquisition ............................................................................................................................... ................................................ 318
Parking In- Lieu ............................................................................................................................... ........................................................... 319
Arts Commission Programs ............................................................................................................................... ........................................ 320
98- 1 City Wide Assessment District ............................................................................................................................... ........................... 323
Community Facilities District # 2 ............................................................................................................................... ................................ 327
Community Facilities District # 3 ............................................................................................................................... ................................ 328
Community Facilities District # 4 ............................................................................................................................... ................................ 329
94- 1 Blackhawk LLD Assessment District ............................................................................................................................... ................. 330
95- 5 California Spirit LLD Assessment District ............................................................................................................................... ......... 331
95- 6 Gerry Ranch LLD Assessment District ............................................................................................................................... .............. 332
95- 2 Hawthorn LLD Assessment District ............................................................................................................................... ................... 333
95- 7 Greystone LLD Assessment District ............................................................................................................................... .................. 334
95- 8 Garin LLD Assessment District ............................................................................................................................... .......................... 335
97- 1 Hancock LLD Assessment District ............................................................................................................................... .................... 336
98- 5 Arroyo Seco LLD Assessment District ............................................................................................................................... .............. 337
98- 3 Solana LLD Assessment District ............................................................................................................................... ........................ 338
98- 4 Birchwood Estates LLD Assessment District ............................................................................................................................... ..... 339
99- 3 Spa L ............................................................................................................................... ................................................................... 340
99- 4 California Grove ............................................................................................................................... ................................................. 341
99- 5 Deer Creek ............................................................................................................................... .......................................................... 342
99- 6 Trailside ............................................................................................................................... .............................................................. 343
99- 7 Termo ............................................................................................................................... ................................................................. 344
99- 8 Gerry Ryder ............................................................................................................................... ........................................................ 345
99- 9 Richmond America ............................................................................................................................... ............................................. 346
00- 2 Lyon Woodfield ............................................................................................................................... .................................................. 347
00- 3 CA Orchard ............................................................................................................................... ........................................................ 348
00- 4 Brentwood Park ............................................................................................................................... .................................................. 349
01- 1 Laird Property ............................................................................................................................... ..................................................... 350
02- 2 Oak Street ( Schulyer- Lyon) ............................................................................................................................... ................................ 351
02- 3 Apricot Way ( Pringle) ............................................................................................................................... ........................................ 352
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page ix
Special Revenue Funds ( Cont.
02- 4 Braddock & Logan ............................................................................................................................... ............................................. 353
02- 5 Sand Creek & Brentwood Blvd. ............................................................................................................................... ......................... 354
02- 6 Balfour & John Muir ............................................................................................................................... .......................................... 355
02- 7 San Jose & Sand Creek ............................................................................................................................... ....................................... 356
02- 8 Lone Tree Arco ............................................................................................................................... ................................................... 357
02- 9 Balfour Plaza ............................................................................................................................... ...................................................... 358
02- 11 Lone Tree Plaza ............................................................................................................................... ................................................ 359
02- 12 Sunset Industrial ............................................................................................................................... ............................................... 360
02- 13 Stonehaven ............................................................................................................................... ....................................................... 361
03- 3 Brookdale Court ............................................................................................................................... ................................................. 362
03- 6 Arbor Village ............................................................................................................................... ...................................................... 363
03- 7 Garin Ranch Commercial ............................................................................................................................... ................................... 364
04- 2 Balfour Griffith Commercial ............................................................................................................................... .............................. 365
Internal Service Funds
Reserves ............................................................................................................................... ...................................................................... 367
Revenue and Expenditure Summary ............................................................................................................................... ........................... 368
Summary of Expenditures by Category ............................................................................................................................... ...................... 369
Emergency Preparedness ............................................................................................................................... ............................................ 371
Information Services ............................................................................................................................... ................................................... 372
Vehicle/ Equipment Replacement ............................................................................................................................... ................................ 375
Information Systems Replacement ............................................................................................................................... ............................. 377
Building Replacement ............................................................................................................................... ................................................. 379
Tuition Program ............................................................................................................................... .......................................................... 382
Fleet Maintenance ............................................................................................................................... ....................................................... 383
Facilities Maintenance Services....................................................................................................................... ........................................... 386
LLD Assessment Replacement ............................................................................................................................... ................................... 389
Insurance ............................................................................................................................... ..................................................................... 390
Debt Service Funds
Introduction ............................................................................................................................... ................................................................. 393
Summary of Fund Balances ............................................................................................................................... ........................................ 394
Summary of Revenues ............................................................................................................................... ................................................ 395
Summary of Expenditures ............................................................................................................................... ........................................... 398
CITY OF BRENTWOOD
OPERATING BUDGET
TABLE OF CONTENTS
2005/ 06 – 2006/ 07 Operating Budget Page x
Redevelopment Agency
List of Officers ............................................................................................................................... ............................................................ 403
Ten Year Projection ............................................................................................................................... .................................................... 407
Summary ............................................................................................................................... ..................................................................... 408
Revenue ............................................................................................................................... ...................................................................... 409
Expenditure Summary ............................................................................................................................... ................................................ 410
Administration & Projects ............................................................................................................................... .......................................... 411
Low/ Moderate Housing ............................................................................................................................... .............................................. 415
Debt Service ............................................................................................................................... ................................................................ 418
Resolution ............................................................................................................................... ................................................................... 420
Appendix
Adopted Equipment List ............................................................................................................................... ............................................. A- 1
Vehicle Replacement List ............................................................................................................................... ........................................... A- 2
Compensation Plan ............................................................................................................................... ..................................................... A- 4
Summary of Positions ............................................................................................................................... ................................................. A- 8
City Basic Data ............................................................................................................................... ......................................................... A- 10
History of Population Growth ............................................................................................................................... ................................... A- 11
Ten Year Personnel History ............................................................................................................................... ...................................... A- 12
Guide to Funds by Fund Numbers ............................................................................................................................... .............................. B- 1
Glossary of Terms ............................................................................................................................... ....................................................... C- 1
Acronyms ............................................................................................................................... .................................................................... D- 1
Index ............................................................................................................................... ........................................................................... E- 1
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xi
June 2005
The Honorable Mayor, Members of the City Council and Citizens of Brentwood
City of Brentwood
Brentwood, California 94513
Dear Mayor Swisher, Members of the City Council and Citizens of Brentwood:
I am pleased to submit the Operating Budget for the City of Brentwood and the Brentwood Redevelopment Agency for Fiscal Years
2005/ 06 and 2006/ 07. The City’s Operating Budget of $ 172.7 million and the Redevelopment Agency’s Budget of $ 10.2 million
adhere to the City Council’s Goals and Objectives. These budgets reflect an organization whose top priorities continue to be:
Regional Transportation
Fiscal Model
Attract and Retain Businesses
Regional Agricultural Preservation and Development
General Plan Update
Emergency Preparedness
Cultural Arts Master Plan
Youth/ Teen Master Plan
The City of Brentwood enjoys a very bright future. The standard of new development in the community has provided excellent
housing, schools, parks and trails, streets and recreation programs. Our City is safe and clean and our residents appreciate the high
quality of life. The City is beginning a new transition phase in which the Council’s policy is to slow down residential development
and to pace build out over the next 10- 15 years. The budget for FY 2005/ 06 and FY 2006/ 07 begins to address that transition.
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xii
Key to planning for build out is the development of a fiscal model that ensures the City continues to budget conservatively, with
revenues exceeding expenditures, and with adequate reserves to cover future liabilities and unexpected emergencies. Staff anticipates
that during the next year we will continue refinement of our 10- year fiscal model. The fiscal model will incorporate customer service
standards identified by the community and adopted by the City Council. Once adopted by the Council, the fiscal model will be the
long term road map for the executive staff to follow. This fiscal model will also identify staffing needs and a strategic plan will be
developed. The recommended operating budget does not include any new positions so that we can analyze our staff needs at build out
and begin to adjust accordingly.
In the upcoming year we are also embarking on a City wide organizational development program which will involve all employees
throughout the City organization. The City has an excellent General Plan which will be updated next year. The City continues to
improve on our standards for the “ built” City. The organizational development program will ensure the “ people side” of the City, our
employees, share a common mission and are effective in providing the highest quality of service to our residents and businesses.
We know we cannot do all of this by ourselves. We need to hear from our residents and businesses about their priorities and concerns
about their City’s future. Included in the budget is funding for outreach to the community through town hall meetings and active
participation. We need to be listening to our community as staff develops the service standards, and we need to be talking to our
community so they understand the range of options available.
I wish to thank the City Council for providing clear policy direction and goals that have been used to prepare the Operating Budget
each year. I would also like to express my appreciation to all those staff members who have taken the time to participate in the
development of the Operating Budget. A great deal of effort and attention to detail has gone into the preparation of this budget
document, representing many hours of work by staff members throughout the organization.
Though the challenges are great, the City is firmly committed to meeting each and every challenge that comes our way. This budget
is the next step towards meeting those challenges. By continuing to follow the financial policy set forth by the City Council,
Brentwood will deliver the highest level of service permitted by the available resources.
Sincerely,
Donna Landeros
Donna Landeros
City Manager
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xiii
Mission Statement
Elevating Confidence in Government
Mission Statement Adopted September 14, 2004
Vision and Culture
We create and institutionalize a vision and culture that furthers the goal of Brentwood representing
the highest civic standard. We form the organization around these values to create the “ Brentwood
Way”:
Integrity – uncompromising adherence to morals and ethical principles
Passion – boundless enthusiasm for what we do
Accountability – answerable for our actions
Respect – to feel and show esteem and consideration for others
Quality – the highest degree of excellence
The “ Brentwood Way”
Good enough is never good enough and we find a way to do it better.
Striving to be the best. The best is never defined or constrained. It is never
reached and we advance the standard every day.
Taking the best of both business and government for the benefit of the community.
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xiv
BUDGET OVERVIEW
This Operating Budget underscores the City Council’s commitment to continue to make cost containment a high priority while
adhering to the Budget Development Guidelines. In accordance with these guidelines, the Operating Budget is free from reliance
upon non- recurring revenue sources and does not commit to spending more than a conservatively prepared estimate of recurring
revenues.
Key Budget Initiatives
A major change for the General Fund this year was the movement of Parks and Recreation from an Enterprise Fund into
the General Fund. Parks and Recreation was originally a Parks district that was substantially supported by its own
property tax revenue. When the Parks District was annexed to the City it was accounted for as an Enterprise. In recent
years, property taxes and program fee revenues have been partly subsidized by the General Fund in the form of reduced
internal service charges. The City has now determined Parks and Recreation is better managed as part of the General
Fund. Some of the increases in the Parks and Recreation budget in FY 2005/ 06 are due to the divisions being charged their
full share for internal service.
The City’s population has increased at an annual average rate of 13.4% over the past decade. However, this tremendous
growth is expected to slow down in the upcoming years. The City cannot ignore the fiscal impact that the development
slowdown will have, and is taking steps to address this. The first step is that the 2005/ 06 - 2006/ 07 budget does not add
any new positions.
In FY 2005/ 06 the City is implementing a 10- year plan to minimize its dependence on development impact fees.
Beginning in 2005/ 06, the Finance Department will move 20% of its staff, currently funded through the Capital
Improvement Program ( CIP), to the General Fund. Parks and Recreation will move all of their staff previously funded
through CIP to the Landscape Division. Economic Development will have all of their staff reallocated by the 2006/ 07
budget year. Engineering will begin this same reallocation process in 2006/ 07.
Investment yields continued to be at historic lows in FY 2004/ 05. As such, the City’s investment income was lower than
anticipated. In addition, the City implemented Governmental Accounting Standards Board ( GASB) Statement No. 40 a
year ahead of the required implementation date. GASB 40 requires the City to report investments at fair market value,
which also led to lower overall returns. The City is conservatively estimating investment income for the General Fund will
be $ 1,250,000 for FY 2005/ 06.
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xv
In an effort to attract and retain top quality employees, the City contracted with Johnson and Associates to perform a
Classification and Compensation study. The classification portion of the study encompassed all City positions and
classifications and included a total of approximately 294 positions currently allocated to 156 classes. The results of the
study have increased General Fund personnel costs in FY 2005/ 06 by $ 359,001, and by $ 795,494 City- wide. The City has
incorporated the annual CPI increase of 2.4% for all salaries in the FY 2005/ 06 budget and has also included a 3% CPI
increase for salaries in FY 2006/ 07.
For FY 2005/ 06, a new Facilities Maintenance internal service fund has been established to provide for the custodial,
janitorial and maintenance needs of the City's buildings and facilities. The personnel costs for the custodians, which had
previously been charged to Building Replacement, will now be funded through this new Facilities Maintenance fund.
Since the Building Replacement fund will pay only for major repairs, the building replacement rate charged to the City
departments has been substantially lowered. This decrease is reflected in the FY 2005/ 06 Internal Services line item in
departmental budgets. Beginning in FY 2006/ 07, the building replacement rate will gradually be increased to ensure the
City has enough resources to pay for future building repairs and replacements.
One of the biggest challenges local governments have faced over the past couple of years has been the rapid increase in
PERS rates. The City’s miscellaneous PERS contribution rate has increased 341% since 2000/ 01. The City’s safety PERS
contribution has risen 472% since 2000/ 01. In an effort to help contain costs, the City prepaid the employer portion of
PERS retirement for the first time in 2004/ 05, resulting in a budgetary savings of over $ 1 million. This savings will be
transferred to the Insurance Fund.
The Insurance fund will consist of the savings realized from future prepayments of the employer portion of retirement
costs, as well as any savings in worker’s compensation and PERS charges associated with having approved positions
which go unfilled. These savings, estimated to be around $ 1.5 million per year, will then be used to pay for the increasing
retiree medical costs facing the City. In an effort to raise public awareness of the true costs and rising liabilities of retiree
medical benefits, GASB issued Statement No. 45 which addresses how local governments should account for their costs
and obligations for retiree healthcare. Statement 45 also establishes reporting and disclosure requirements. The City is
required to implement GASB 45 in fiscal year 2008/ 09, and has budgeted for the insurance fund to pay for an actuarial
valuation report in 2006/ 07.
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xvi
LEGISLATIVE ISSUES
Proposition 1A
In November 2004, the voters of California approved Proposition 1A, an amendment to the State constitution intended to restore
predictability and stability to local government budgets. Proposition 1A:
Strengthens prohibitions against unfunded state mandates by requiring the State to suspend state mandates in any year the
Legislature does not fully fund those laws.
Expands the definition of state mandate to include transfer of responsibility of a program for which the state previously had
full or partial responsibility.
Prohibits the State from:
- Reducing the local Bradley Burns Uniform Sales & Use Tax rate or altering its method of allocation unless complying
with Federal law or an interstate compact.
- Decreasing VLF revenue from the 0.65% rate without providing replacement funding to cities and counties.
- Shifting property taxes from cities, counties or special districts with certain exceptions.
Proposition 1A was one part of a 2004/ 05 State Budget Agreement between Governor Schwarzenegger, the Legislature and local
governments. The core details of Proposition 1A and the Budget Agreement are outlined below along with their impact on the City’s
finances.
Cities, counties, special districts and redevelopment agencies will give up $ 1.3B in local revenues in both FY 2004/ 05 and
FY 2005/ 06 to help with the State budget crisis. This is referred to as “ ERAF III”, the Education Revenue Augmentation
Fund ( ERAF) property tax transfer. The League of California Cities estimates ERAF III will cost Brentwood $ 318,732 for
both FY 2004/ 05 and FY 2005/ 06.
Eliminates the current Vehicle License Fee ( VLF) backfill from the State’s General Fund and provides these amounts to
cities and counties from ERAF. This swapping of dollars takes the majority of the City’s VLF fees and replaces them,
dollar for dollar, with property tax funds. This will result in a change in cash flow for VLF revenue but should not have a
significant impact upon the total amount of VLF revenue received.
Constitutionally protects the rate and method of distribution of the local Bradley- Burns Sales Tax and Transactions and
Use Tax. Proposition 1A also guarantees payment of property tax backfill monies lost due to Proposition 57’ s suspension
of the ¼ cent sales tax and guarantees the return of the ¼ cent Bradley- Burns sales tax when the bonds purchased as part of
Proposition 57 are retired. This addresses the “ triple flip” component of Proposition 57 which suspended one- quarter of
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xvii
the Bradley- Burns sales tax, replaced the lost revenues on a dollar- for- dollar basis with funds from the county- wide ERAF
property tax funds and increased the State’s sales and use tax by one- quarter percent. The distribution of quarterly sales
tax estimates began at the reduced level in September, 2004. The City’s 2005/ 06 – 2009/ 10 CIP reflects these reductions
in State sales tax distributions.
Brentwood anticipates losing the following in FY 2005/ 06 due to additional revenue taken away by the State: $ 95,000 due to
unfunded mandated cost reimbursements; $ 337,000 due to the Governor’s Additional RDA ERAF Shift and $ 200,000 in sales tax
revenue due to the “ Triple Flip”. Despite the difficult economic times, the City’s projections have managed to come within 1% of its
2004/ 05 revenue budget, while staying 7% under its budgeted expenditures. This revenue shortfall was unanticipated due to the
State’s restructuring of their accrual method for sales tax, resulting in our being paid for only 10.5 months instead of one full year.
Most of the expense savings are due to approved personnel positions that were not filled during the year.
VLF Loan Repayment
The “ VLF Loan” is the result of the State withholding three months of VLF backfill revenues from its normal distribution to cities
during FY 2003/ 04. The State’s budget for FY 2004/ 05 calls for the repayment of the “ VLF Loan” in FY 2006/ 07. As a result, the
City should receive the $ 559,947 owed in FY 2006/ 07.
Measure J and the Urban Limit Line
Measure J is a $ 2B transportation funding measure passed by Contra Costa County voters on November 2, 2004. Beginning in 2009,
Measure J will withhold millions of dollars, designated for street improvements, from any city that fails to abide by a mutually agreed
upon urban limit line. A “ mutually agreed upon” urban limit line requires support from: 1) 75% of the City councils representing 75%
of the county’s population; 2) four of the five county Supervisors and 3) approval of a majority of voters in a countywide election.
Any city may opt out of the countywide process at any time if their residents approve a City- drawn line. Expansion of the Brentwood
urban limit line would result in the following:
Gross Acreage Open Space Acreage Net Buildable Acreage Potential Units Potential Jobs
2,034 643 1,391
Residential: 964 2,900
Commercial: 427 14,000
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xviii
ECONOMIC OVERVIEW
Fiscal Year 2004/ 05 General Fund revenues are projected to reach $ 31,271,626, which is an increase of $ 2,366,989 or 8.2% from FY
2003/ 04. In the past year the City continued to emphasize growth in the commercial, industrial and retail sectors, approving 16
projects totaling 1,852,860 sq. ft. Brentwood continues to cultivate a vital,
thriving and charming historical Downtown consisting of restaurants, unique
retail businesses and personal service businesses. Numerous community
workshops have been held to develop a community consensus for the Downtown
revitalization. All economic indicators point to the City’s continued growth and
stability as shown by the following statistics from FY 2003/ 04:
The City’s population increased by 11.08%
Residential construction valuation increased by 9.87%
The median price for new homes increased by 16%
The median price for existing homes increased by 19.7%
Commercial construction valuation increased by 146.47%
Enterprise Funds
Generally speaking, enterprise funds are self supporting and recoup their costs through rates charged to the users of the service.
Budgetary notes relating to enterprise funds are discussed below.
The Solid Waste Enterprise Fund will continue to see revenue growth commensurate with the increase in the City’s
annual population levels. Most of these costs are tied to resident needs and demands and will increase accordingly. The
Budget includes $ 250,000 for a fleet facility upgrade and $ 82,500 for an upgraded fuel dispensing system. The Solid
Waste Enterprise will also begin payments on the possible Series 2006 Revenue Bonds. The bond proceeds will be used
for the Solid Waste Transfer station improvements, which include a scale, scale house, litter containment devices, and a
new building with a concrete loading pad, as well as other improvements to adequately meet the City’s needs.
The Water and Wastewater Enterprise Funds, like the Solid Waste Fund, will continue to see both revenues and expenses
increase as the needs for service increase. The Water Fund will also begin payments on a new Water Treatment Plant
Loan. Debt service will be approximately $ 1,350,000 annually for the Water Fund, with an equal amount being paid by
development impact fees. The Wastewater Fund will begin payment of a State Water Resources Loan in FY 2005/ 06. A
Downtown
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xix
rate study is underway for both the Water and Wastewater Enterprises to ensure that the rates charged in the future are
appropriate. The Wastewater Enterprise fund will fall short of this year’s revenue projections due to budgeted revenue
based on the previous rate study.
The City Rentals Enterprise includes the Brentwood Education and Technology Center and Los Medanos College.
Approximately 22% of the available space at the Technology Center is vacant while 29% is leased by the City to house
employees. The money collected does not offset the cost of running the Center and the City has had to provide a subsidy
to keep the Brentwood Center open. Next year will be the first time that City Rentals will be charged their full share for
internal services, including replacement funds, and because of this the General Fund subsidy has increased by $ 188,632.
The Housing Enterprise has been established to help provide an affordable housing program for the citizens of
Brentwood. The City creates affordable housing by requiring that 10% of all newly constructed dwelling units be
designated as affordable housing for very- low, low and moderate income households. Units must be integrated into each
neighborhood and must be built with the same quality, fit and finish as market rate units. The ownership units in this
program must remain affordable for 45 years, while the rental units must remain affordable for 55 years.
Residential Growth Management Program ( RGMP)
The intent of the RGMP is to maintain a consistent sustainable rate of growth over the next 15 to 20 years and to synchronize this
growth with public infrastructure and facilities as defined by the CIP. The City issued 1,421 building permits for single- family homes
during FY 2003/ 04 and an additional 1,400 in FY 2004/ 05.
User Fees
The City of Brentwood utilizes a User Fee Model to compute city- wide and departmental overhead factors, full hourly rate costs by
City Classification and/ or full costs associated with the provision of selected services. The City reviews and updates their fees on an
annual basis based on changes in the Consumer Price Index ( CPI). Examples of City fees covered in the Cost Allocation and
Schedule of City fees include: Building, Inspection, Planning, Engineering, Park and Recreation, Water Service, Wastewater Service
and Solid Waste Service fees.
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xx
ORGANIZATIONAL PRIORITIES
Vasco Road
Vasco Road is a major thoroughfare which is used by Brentwood
residents who work in the Tri- Valley and the Bay Area. Ensuring the
safety of travelers on Vasco Road is vital to the uninterrupted flow of
commerce for both Brentwood and Contra Costa County.
On October 14, 2003 the City Council approved a loan to Contra Costa
County, in the amount of $ 1.5 million, for Vasco Road safety and road
improvements. The loan included a sunset clause which required
construction to begin within six months. On April 13, 2004, the City
Council approved an additional $ 500,000 and extended the sunset date
an additional eighteen months from the adoption of the resolution. On
September 14, 2004 the City Council approved the formation of a Joint
Powers Agreement between the County and City. To date there has
only been one agreement for an amount not to exceed $ 450,000.
Regional Leadership
The focus on providing leadership on issues that affect the entire region, such as transportation and economic development continues
in FY 2005/ 06. The City Council and City staff will continue to be involved in policy development and issue resolution through its
memberships and participation with regional and state- wide organizations. Through these affiliations, the City stays on top of current
legislative issues, participates in regional transportation goals and can prepare for impacts caused by the state budget shortfalls.
Fiscal Model
One of the hallmarks of a progressively managed City government is the ability to develop a vision of its long- term financial
environment while simultaneously meeting the immediate demands for outstanding service delivery. To ensure the City remains
financially healthy over the next decade, the Finance Department developed a 10- year forecast of the City’s General Fund revenues
and expenses. This fiscal model combines a 10- year financial forecast of expenditures, revenues and fund balance with
recommendations on how any gaps between revenues and expenditures may be closed. The Finance Department will be enhancing
the fiscal model in order to provide a comprehensive, long- term road map for City Council and the Executive staff. The fiscal model
will also be updated on a yearly basis as part of the budget process.
Vasco Road
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xxi
The current fiscal model forecasts cover approximately 98% of General Fund revenues. The most recent data shows the largest
revenue sources are property taxes, building fees, administration fees, sales taxes and engineering fees. Based on the current fiscal
model, total General Fund revenue sources are forecast to grow from approximately $ 31.3 million in FY 2004/ 2005 to approximately
$ 54 million in FY 2013/ 2014. This $ 22.7 million increase equates to an average annual rate of growth of 6.2 percent per year.
Outlined below are the significant changes forecasted for the City’s revenue sources over the next ten years:
Property tax is forecast to increase from approximately 16% of total General Fund revenues in FY 2005/ 2006, to the
largest revenue source at nearly 26% in FY 2013/ 2014.
Sales tax is forecast to shift from the fourth largest source of revenue to the second largest source of revenue, becoming
19% of the total revenue in FY 2013/ 2014.
Revenue attributable to building fees, currently the second largest source of revenue at approximately 15%, is forecast to
decrease to approximately 5% of revenue in FY 2013/ 2014.
Other growth related service revenues, including engineering fees ( currently 8% of total General Fund revenues) and
planning fees ( currently 2% of total General Fund revenues) are forecast to decline from a combined 10% to a combined
5% of total General Fund revenues in FY 2013/ 2014.
Community Facilities District Revenue is forecast to grow in importance, from 1.9% of General Fund revenues in FY
2005/ 06, to approximately 8% of General Fund revenues between FY 2008/ 2009 and FY 2013/ 2014.
Redevelopment
The Brentwood Redevelopment Agency ( RDA) will focus on developing, implementing and managing the City’s Affordable Housing
Program, as well as participate in the creation, preservation and improvement of housing opportunities and support private
reinvestment projects within Redevelopment Project Areas. The RDA will continue development of industrial opportunities and job
creation at Sunset Industrial Complex and negotiate a public / private partnership to develop a retail / residential mixed land use for
the corner at Oak and Walnut and 1000 Central Boulevard. RDA staff will also begin
developing and implementing a City- wide marketing program as an economic
development strategy. Public infrastructure and improvements within the Redevelopment
Project Areas will be funded by the RDA’s tax allocation bond proceeds.
Agriculture
For decades Brentwood has been known for its bountiful cropland and “ U- pick” fruit
stands. However, the rapid population growth in the late ‘ 90s resulted in the loss of
farmland. In 2001, the City adopted the Agriculture Preservation Program in order to
mitigate and offset the loss of valuable farmland resources. In October 2002, the
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xxii
Brentwood Agricultural Land Trust ( BALT), a non- profit corporation, was formed to preserve agricultural land, promote local
agriculture and implement the City’s Agricultural Enterprise Program.
Public Safety
The City Council has put Public Safety as one of its top priorities and is committed to making and keeping Brentwood one of the
safest cities in California. Safe streets and low crime rates attract quality residential and commercial growth. The new 43,984 sq. ft.
police facility, located at 9100 Brentwood Boulevard, is scheduled to open in July of 2005. In addition to the new police facility,
staffing in the Traffic Safety Unit, Investigations Division and Patrols Division serves the goal of making Brentwood a place that its
residents are proud to call home.
System and Organizational Improvements
The City is proposing the acquisition of new financial software. This software will integrate City systems, such as Building Permits,
Utility Billing and Parks and Recreation with the financial accounting system. It will also allow the City to bring the Human
Resource and Payroll functions in- house, removing the need for third- party services. The Workflow component will automate
approval processes City wide and the imaging capabilities will allow for easy sharing of source documents, which will greatly
improve the efficiency of all City employees. The City’s Website will become an e- commerce site that will allow users to inquire
about and/ or pay their Utility Billing accounts. Information Systems is also currently installing fiber optic systems that will allow City
departments to be connected without having to be in the same location. These are just a few of the steps being taken to make efficient
and economic use of technology, while providing quality customer service.
Public Access Channels
One of our new funds this year will be for the Public Access, Educational, and Governmental ( PEG) channels. Comcast has agreed to
provide the City with three PEG channels and will pay the City a total of $ 850,000 for these channels. The formation of the PEG
channels were also set as a Council Goal at the April 16, 2005 Council Goal Setting Workshop. A design and implementation plan for
the cable channel will be established and brought back to Council for approval.
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xxiii
MILESTONES AND ACCOMPLISHMENTS
Sunset Park Master Plan
The completion of the Sunset Park Master Plan and Expansion – This project increased the Sunset Sports Complex from 10 acres to
38 acres making it the only large sports park in the City. The park now includes soccer fields, ball fields, parking lots, a children’s
play area, a concession stand and an equestrian staging area.
Surface Water Treatment Facility – Acquisition of Treatment Capacity
The City Council recently approved an agreement with the Contra Costa Water District
( CCWD). As part of this agreement the City purchased 3,200 acre- feet per year of
existing treatment capacity at the Randall- Bold Water Treatment Plant ( RBWTP). An
additional component of this agreement provides for the City constructing a scaled down
water treatment facility, adjacent to the RBWTP, to treat water purchased under a 1999
agreement between Brentwood and the CCWD. This agreement allows the City to
construct a smaller facility than originally anticipated, at a net capital savings of $ 7
million, while ensuring the City has adequate, long- term supplies of treated water.
Infrastructure Improvements
Pavement Management Program – An annual preventative maintenance program for those City streets selected by the
City’s Pavement Management Software.
ADA Improvements – Annual ADA compliance efforts now require the identification of problems City- wide.
Traffic Calming Installations – On- going roadway circulation improvements.
City- wide Sidewalk Replacement – A replacement program to ensure public safety and reduce liability exposure.
Expanding Recreation Programs
As the population of Brentwood continues to grow, the City is committed to expanding both the park and recreational programs and
facilities to meet the increased need for the constructive use of leisure time. Brentwood is becoming a very diverse community, with a
large percentage of growth in young families, first time home buyers and active seniors. As a result, the Park and Recreation
Department continues to pursue opportunities to enhance the lives of our youth, families and adults of all ages by following the
mission to continue to “… add joy to people’s lives”, as evidenced by a sampling of our current programs:
Sunset Park Athletic Complex
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xxiv
Starry Nights in Brentwood, a free downtown musical series on Friday nights.
Come out and Play … at a Family Fun Day, a quarterly program offered at different neighborhood parks.
Expansion of the Police Activities League – “ After the Bell” offered at three middle schools.
Brentwood Senior Citizens Club – the City has assisted the formation of a non- profit Senior Advisory Board to assist and
advise the City in the expansion of senior programs and future park and facility development projects.
CC Café, a daily senior nutrition site that is open to all seniors in Brentwood.
Youth Commission Job Fair.
Day in the Park – Art and Wine Festival.
Joint- use community projects, which include four joint- use gymnasiums.
New Police Facility
For the past several years the Police Department has been residing in an 8,500
square foot building. This space is significantly less then suggested by the needs
assessment performed in early 2000. By July 2005, the Police Department will
have completed their move to a new, 43,984 square foot facility. The new police
station will include holding facilities and a sally port; an Emergency Operations
Center; space for a dispatch center; evidence area including viewing; SWAT area;
records and reception areas; locker and workout area; a community room and office
space. As such, there will be increased costs related to this new building including
custodial, janitorial, building replacement and utilities costs.
Vineyards at Marsh Creek
In July of 2004, the Contra Costa Local Agency Formation Commission ( LAFCO) approved the City’s request to annex 593 acres
south of the City limits for the Vineyards project. The project includes a winery, a 2,500 seat amphitheater, executive home sites, a
recreation center, a Community College and the establishment of the John Marsh House Park site.
Recreation Facility
Construction of an 8,300 square foot facility will begin in FY 2005/ 06 that will provide additional services to Brentwood citizens.
The facility will be adjacent to the Aquatic Center to allow for a flow between multiple recreational activities.
New Police Station
City of Brentwood
2005/ 06 – 2006/ 07 Operating Budget Page xxv
Sand Creek Park
Conceptual planning has begun on this 13+ acre park, which will fulfill the community park need, as per the Park, Trails and
Recreation Master Plan for northwest Brentwood.
John Marsh Home Restoration
Emergency stabilization is now underway to prevent the collapse of the John
Marsh House. California State Parks will be the lead in the restoration of the John
Marsh House and the development of Pioneer State Park. This project is partially
financed through the Vineyards at Marsh Creek.
Master Plans
General Plan Update – An update is needed to address rapid
community changes since the 1993 and 2001 General Plan Updates. It
is also necessary to ensure internal consistency between the various
elements of the General Plan and to reflect land use changes since
2001.
Specific Plan – Downtown, Brentwood Boulevard and Empire Triangle
– As directed by the General Plan, the purpose of this Specific Plan is
to preserve and enhance the identity and small- town character of
Brentwood; promote balanced, diverse and high- quality development
patterns within the City; encourage retail and services growth which
correspond with local and regional demands and maintain the historical commercial focus and vitality of downtown.
John Marsh Home –
Then and Now
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxvi
CITIZENS
CITY COUNCIL
City Manager
Boards &
Commissions
City Attorney
Finance / IS Engineering
Parks and
Recreation
Police Public Works Administration
City of Brentwood
Organizational Chart
Administration
Operations/
Patrol
Special Projects
Streets
Water
Wastewater
Solid Waste Purchasing
Grants
Administrative
Services
Information
Services
Business Services
Financial Services
Development
Engineering/
NPDES
Traffic
Construction
Inspection
Capital
Improvement
Program
Cultural Arts
Lighting &
Landscape
Districts
Administration
Landscape/
Facilities
City- wide Park
District
Recreation
Human
Resources
City Clerk
GIS/ Mapping
Community
Development
Building
Planning
Housing
Economic
Development
Redevelopment
Project Services Agriculture
Fleet
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxvii
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxviii
The Government Finance Officers
Association ( GFOA) and the
California Society of Municipal
Finance Officers offer a recognition
program for public entities to
determine whether the City conforms
to the highest level of governmental
accounting and financial reporting
standards. Both GFOA and CSMFO
awarded a Distinguished Budget
Presentation Award to the City of
Brentwood for its two- year budget
beginning Fiscal Year 2003/ 04. Its
attainment represents a significant
accomplishment by a government and
its management.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxix
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxx
BUDGET DOCUMENTS
The Finance Department coordinates the preparation of four key budget documents: the Two- Year Operating Budget ( and annual review),
the Five- Year Capital Improvement Program, the Cost Allocation Plan and the Comprehensive Annual Financial Report. The information
contained in these documents is the end product of a thorough financial review performed through the combined efforts of staff within the
City. On subsequent pages, a brief description of the budget documents and a summary of their intended uses are provided.
If You Are Looking For: Where It Is Found:
Budget Overview and Policies
Budget Trends and Graphs
Revenue Detail/ Departmental
Expenditures Summaries
Personnel Information
Four- year Line Item Expenditure Detail
Line Item Detail
Status of Prior- Year Capital Projects
Adopted Current Year Projects
Future Projects Anticipated Funding
Total Cost by Classification
City Staff Billing Rates
City Fees
( Available 120 Days after Budget Adoption)
Financial Statements, City Statistics,
Management Discussion and Analysis
Demographics, Management Statement
( Available 180 days after fiscal year end)
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxi
Adopted Two Year Operating Budget
The Adopted Operating Budget is summarized at a division level. Divisional budgets consolidate program activities into similar service
categories within a fund with the intent of reducing the cumbersome nature of a program- based budget document. Every effort has been
made to present the budget document in a “ user friendly” format with increased emphasis on trends and written explanations.
The Adopted Operating Budget Detail provides a separate line item, object code detail for the budget. Adopted expenditures within each
divisional category are detailed with descriptions. Budgets are broken down to the program level and are listed in account number order.
Historical information is prepared at a detailed object code level for comparison purposes. Cost data within this document is presented by
department.
Operational Line Item Budget
The Operational Line Item Budget provides line item revenue and expenditure detail which is used by City departments for budget
management and tracking purposes.
Adopted Five- Year Capital Improvement Program Budget
The Adopted Five- Year Capital Improvement Program ( CIP) Budget is a separate document that is annually brought to the City Council
for consideration. Prior to City Council’s consideration of the CIP, the document is presented to the Planning Commission to ensure
compliance with the General Plan. The CIP matches funding sources with capital expenditures while developing a five- year schedule for
completion. The relationship between the CIP and the operating budgets is described in detail beginning on page xlvi.
CIP projects are separated into the following seven categories:
1. Roadway Improvements
2. Parks and Trails Improvements
3. Water Improvements
4. Wastewater Improvements
5. Community Facilities Improvements
6. Drainage Improvements
7. Developer Improvements
Each project has been assigned a unique identification number that will remain with the project. The project identification number allows
the City Council to track and monitor project status over multi- year periods.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxii
Cost Allocation Plan
The City- wide Cost Allocation Plan ( CAP) is a budget document that will be prepared and distributed approximately 120 days following
the adoption of the annual operating budget. A CAP is a widely recognized and well- used method of distributing administrative overhead
“ support” costs to the benefiting programs within a City. The City Council adopted its first CAP in December, 1994. That plan established
the method of allocating indirect and direct costs. The CAP is updated each year based upon the approved budget data for the current year
and actual financial and statistical data for prior years. The City’s CAP also becomes a key document in preparing the City’s User Fee
Review and labor charge rates. The City- wide administrative overhead rate for FY 2004/ 05 was 30.86% of direct costs.
The CAP calculates departmental and city- wide overhead factors based on distributions of expenditures between the following three
categories: personnel costs, operating costs and ongoing capital costs. Assumptions regarding management and non- management positions
likewise impact the computation. The methodology for computing these overhead factors is as follows:
Department Overhead: To compute the department overhead factor, costs for department management salaries and benefits, plus
the cost of associated operating and capital items to be included within overhead, are identified. This cost is then divided by the
salary and benefit cost of all non- management employees. The resulting computation is a multiplier that is applied to the hourly
rate of a specific position within the department to compute the resulting department overhead associated with providing a
designated service.
City- wide Overhead: To compute the city- wide overhead factor, general government costs that are not allocable to any line
departments are identified. These costs are divided by the total salaries and benefits of all City employees. The result of this
computation is a multiplier applied to the hourly rate of a specific position to compute the resulting city- wide overhead associated
with providing a designated service.
Comprehensive Annual Financial Report
The Comprehensive Annual Financial Report ( CAFR) is prepared in accordance with principles generally accepted in the United States of
America as promulgated by the GASB. Accounting for all of the City’s activities is centralized under the Finance Department which is
responsible for maintaining the integrity of the City’s recorded financial data. The Finance Department, in conjunction with the City’s
management, is also responsible for establishing and maintaining an internal control structure designed to ensure that the City’s assets
are protected from loss, theft or misuse.
The internal control structure is designed to provide reasonable assurance that the City’s objectives are met, while recognizing that
this assurance is not absolute. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the
benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. City
administration believes the existing internal control systems are adequate to provide reasonable assurance that the City’s assets are
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxiii
safeguarded against loss and that the financial records are reliable for preparing financial statements and maintaining accountability
for assets. This belief is supported by the City’s fifth consecutive “ Unqualified” Audit issued in 2004.
BUDGET POLICY
The City amended its Budget and Fiscal Policy in February 2004. The purpose of the policy is to establish guidelines for budget
development, administration and management as well as outline the City’s fiscal policies in regard to user fee cost recovery goals, capital
financing and debt management. The Operating Budget is developed and managed per the policies defined below.
Budget Objectives
Identify community needs for essential services.
Organize the programs required to provide these essential services.
Establish program policies and goals which define the nature and level of program services required.
Identify activities performed in delivering program services.
Propose objectives for improving the delivery of program services.
Identify and appropriate the resources required to perform program activities and accomplish program objectives.
Set standards to measure and evaluate the:
- Output of program activities
- Accomplishments of program objectives
- Expenditure of program objectives
Two- Year Budget
The City Council shall adopt a two- year budget for the ensuing fiscal year no later than June 30th of each year.
The first year of the two- year budget, the City Council will conduct a budget study session outlining the recommended budget
for the two- year period.
The second year of the two- year budget, the City Council will conduct a budget study session which focuses on changes being
recommended for the second year of the two- year budget.
For each of the two years, the City Council will adopt a resolution appropriating and approving the budget for the ensuing fiscal
year.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxiv
Second Year Budget
Before the beginning of the second year of the two- year cycle, the City Council will review progress during the first year and approve
appropriations for the second fiscal year.
Mid- year Budget Reviews
The City Council will formally review the City’s fiscal condition and amend appropriations, if necessary, six months after the beginning of
each year.
Balanced Budget
The City will maintain a balanced budget over the two- year period of the budget.
Each fiscal year, operating revenues must fully cover operating expenditures, including debt service.
The City will strive to maintain 30% of annual appropriations in the General Fund’s Undesignated Fund Balance.
The City will strive to have cash reserves in the Enterprise Funds at an optimal level of 30%.
Budget Administration
The City Council may, by majority vote, amend or supplement the budget at any time after its adoption. The City Manager has the
authority to make administrative adjustments to appropriations as long as there is no funding source incompatibility and provided those
changes do not increase the overall appropriations. All budget transfers require the approval of the Director of Finance, or designee, except
those affecting personnel which must be approved by the City Manager.
BUDGET DEVELOPMENT PROCESS
The City uses the following procedures in establishing the budgetary data reflected in the financial statements:
Beginning in March, department heads prepare estimates for required appropriations for the two fiscal years commencing the
following July 1. The proposed budget includes estimated expenditures and forecasted revenues 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.
In May, the City Manager submits to the City Council a proposed operating budget for the upcoming fiscal year. The operating
budget includes a summary of the proposed expenditures and financial resources of the City. Public meetings are conducted to
obtain public comments.
By June 30th, the City Council adopts the operating budget through passage of an adopting resolution. This appropriated budget
covers substantially all City expenditures. For all funds, the budget includes all appropriated amounts as originally adopted,
plus amendments by the City Council and unexpended prior year appropriations which lapsed at the year end.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxv
BUDGET CALENDAR
Legend: ● Meeting Date ♦ Due Date
Task # Activity Responsibility Oct 2N0o0v4 Dec Jan Feb Mar 2A0p0r5 May Jun Jul
1 First Quarter Report to City
Clerk Finance ♦ 10/ 15
2 Mid- Year Budget
Adjustments Due to Finance All Departments ♦ 12/ 15
3 Mid- Year Budget Report due
to City Clerk Finance ♦ 1/ 7
4 CIP Budget Packets
Distributed All Departments ● 1/ 10
5 Mid- Year Budget Report
( Council Meeting) Finance ● 1/ 11
6 Second Quarter Report to
City Clerk Finance ♦ 1/ 14
7 Operating Budget Packets
Distributed All Departments ● 1/ 25
8 Class on Preparation of
Operating Budget All Departments ● 1/ 25
9 Open On- Line Budget
System All Departments ♦ 1/ 28
11 Permit Projections due to
Finance
Bldg., Eng.,
Finance ♦ 2/ 18
12 CIP Project Budget Sheets
Due to Finance All Departments ♦ 3/ 4
13 CIP Budget Session All Project
Managers ● 3/ 14
14 Operating Budget Packets
Due to Finance All Departments ♦ 3/ 11
15 Close On- Line Budget
System Finance ♦ 3/ 11
16 Personnel Budget Due to
Finance Human Resources ♦ 3/ 11
17 Park & Recreation
Commission CIP Workshop Parks & Finance ● 3/ 24
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxvi
BUDGET CALENDAR ( Cont.)
Legend: ● Meeting Date ♦ Due Date
Task 2004 2005
# Activity Responsibility Oct Nov Dec Jan Feb Mar Apr May Jun Jul
18 CIP Final Review All Departments ● 3/ 28
19 Operating Budget Review Dept. Heads
w/ Dir. of Finance ● 3/ 29
20 CIP Budget Workshop /
Public Hearing
All Project
Managers ● 4/ 12
21 Notice of Negative
Declaration Published Engineering ♦ 4/ 15
22 Letter to County Clerk
Regarding Public Notice Engineering ♦ 4/ 15
23 Third Quarter Report to
City Clerk Finance ♦ 4/ 19
24 Operating Budget Review City Manager and
Dir. of Finance ● 5/ 10
25 CIP Budget to Council for
Referral to Planning Comm. Finance ● 5/ 10
26 CIP Budget to Planning
Commission for Approval
Finance /
Engineering ● 5/ 17
27 CIP Budget to Council for
Adoption Finance ● 5/ 24
28 Operating Budget
Workshop / Public Hearing All Departments ● 5/ 24
29
File and Record CIP
Documents with County
Clerk
Engineering ♦ 5/ 25
30 Operating Budget to
Council for Adoption Finance ● 6/ 14
31
Post Adopted CIP and
Operating Budgets on Web
Site
Finance ♦ 6/ 15
32 Publish Adopted CIP and
Adopted Operating Budgets Finance ♦ 6/ 15
33 Fourth Quarter Report Due
to City Clerk Finance ♦ 7/ 15
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxvii
CITY REVENUE SOURCES
The City of Brentwood relies on several major revenue sources to balance its General Fund budget. The most important of these revenue
sources, based on the percentage of the total revenue budget, are: Property Tax, Building Fees, Administration Fees, Sales Tax,
Engineering Fees, Motor Vehicle- in- Lieu Taxes, County Revenue and Investment Income. Together these revenues account for
$ 31,731,894, or approximately 79.4% of the total revenue projected in FY 2005/ 06. Listed below are the assumptions used for estimating
the major revenue sources for FY 2005/ 06.
Property Tax
The County of Contra Costa levies a tax of 1% on the assessed valuation of property within the County. The City of Brentwood receives
approximately a 13.38% share of this 1% levy for property located within the City limits. Because of State actions to balance its budget
during fiscal years 1992/ 93 through 1994/ 95, the City has permanently lost in excess of $ 11M through FY 2004/ 05. The FY 2005/ 06
estimate of property tax revenue, $ 6,209,609, represents 15.5% of the General Fund and is based on an assumed 2% increase in assessed
valuation of existing property.
Building Fees
Permits fees cover the cost of inspection, plan retention, records keeping, materials investigation, special inspection management and
overhead. The projected building permit revenue for FY 2005/ 06, $ 3,800,842, reflects 1,200 new, single family dwellings as well as
expected commercial development. Plan review fees cover the cost of structural as well as nonstructural plan review, zoning compliance,
project condition compliance, design review compliance, record keeping and overhead. Revenue generated from this service is expected to
be $ 2,124,386 for FY 2005/ 06.
Administration Fees
These fees cover the costs associated with staff time involved in administering either a function or a program. The revenue estimate for FY
2005/ 06 is $ 4,710,493.
Sales Tax
The City of Brentwood receives a 1% share of all taxable sales generated within its borders. In addition to this 1% share, the City receives
a portion of an additional voter- approved 1/ 2% sales tax amount, which is dedicated for public safety purposes. The sales tax estimate for
FY 2005/ 06 is $ 4,461,250, not including the public safety portion. This is $ 892,250 above the revised FY 2004/ 05 estimate of $ 3,569,000.
This increase is forecasted because of an anticipated rise in local economic activity and new businesses locating in Brentwood.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxviii
Engineering Fees
Engineering fees cover the costs of inspection, review, plan check, record keeping and overhead. Revenue generated from these fees is
expected to be $ 3,302,950 in FY 2005/ 06.
Motor Vehicle- in- Lieu Tax
The State Revenue and Taxation code imposes an annual license fee of 2% of the market value of motor vehicles in lieu of a local motor
vehicle property tax. Cities and counties equally share 81.25% of the total tax collected statewide, which is distributed to cities and
counties on a per capita basis. Motor Vehicle- in- Lieu tax revenue is expected to increase by 20% in FY 2005/ 06 to $ 2,580,600. This is
$ 430,100 more than the FY 2004/ 05 amount of $ 2,150,500.
Parks and Recreation Charges and Fees
Parks and Recreation provides many services on a “ fee- for- service” basis. The main sources of revenue for Parks and Recreation are
recreational programs with registration fees, facility rentals and reimbursement for services. The FY 2005/ 06 estimate for Charges and
Fees is $ 1,654,004.
Parks and Recreation Property Taxes
The County of Contra Costa levies a tax of 1% on the assessed valuation of property within the County. Beginning in FY 2005/ 06, the City
of Brentwood Parks and Recreation Department will receive approximately a 3.1% share of this 1% levy for property located within the
City limits. The FY 2005/ 06 estimate of County property tax revenue, $ 1,344,025 represents 3.4% of the General Fund.
Investment Income
Investment income declined in 2004/ 05 due to investment yields being at significantly lower rates than anticipated. Additionally,
accounting regulations requiring the City to report investments at fair market value were responsible for the lower overall returns.
The City is conservatively estimating investment income will be $ 1,250,000 for FY 2005/ 06.
Other Revenue Sources
User Fees – Fees charged for the use of services based on the cost recovery goals set by Council. User fees are a major
revenue source for the Solid Waste, Water and Wastewater Enterprise Funds.
Facility Fees – Developer Impact Fees are collected for all new development in the City of Brentwood. These are fees
collected for the purpose of constructing or improving Master Planned City infrastructure.
Franchise Fees – Franchise Fees are charged for utility services based on a percentage of the gross revenues of the utility
company.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xxxix
Total General Fund Revenues – By Major Recurring Revenue Sources
Major Recurring Revenues Sources Projected FY 2004/ 05 Budget FY 2005/ 06 Budget FY 2006/ 07
Property Tax 20.4% 15.5% 16.9%
Building Fees 17.0% 15.2% 13.0%
Administration Fees 13.2% 11.8% 11.4%
Sales Tax 11.7% 11.6% 12.5%
Engineering Fees 10.7% 8.3% 6.9%
Motor Vehicle- In- Lieu 7.1% 6.5% 6.4%
Parks and Recreation Charges and Fees 0% 4.1% 3.4%
Parks and Recreation Property Taxes 0% 3.4% 4.3%
Investment Income 3.3% 3.1% 3.8%
CITY EXPENDITURES
The City’s budget is financed by the use of various types of funds for its operations. The table below is a summary of these major
expenditures with the General Fund highlighted:
Projected FY 2004/ 05 Budget FY 2005/ 06 Budget FY 2006/ 07
General $ 36,827,436 $ 39,956,022 $ 41,588,668
Capital Improvement 23,887,381 42,589,835 53,148,331
Enterprise* 25,878,914 26,082,805 28,454,649
Special Revenue 63,098,163 51,284,604 49,161,990
Assessment Districts 3,835,586 5,520,307 6,240,301
Internal Service 5,861,772 7,259,305 7,002,400
Debt Service 12,546,967 13,800,382 13,718,280
Redevelopment Agency 9,427,304 10,226,152 6,484,969
TOTALS $ 181,363,523 $ 196,719,412 $ 205,799,588
* Beginning in FY 2005/ 06, the Parks and Recreation Enterprise moved from Enterprise to the General Fund.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xl
CONSTITUTIONAL SPENDING LIMITS
Commonly referred to as the Gann Limit, this was a ballot initiative adopted in 1980, and modified by Proposition 111 which passed in
1990, to limit the amount of tax proceeds state and local governments can spend each year. The Gann limit now appears in California’s
State Constitution as Article XIII ( B).
The limit changes annually and is different for every city. Each year’s limit is based on the amount of tax proceeds that were authorized to
be spent in FY 1978/ 79 in each city, and modified for changes in inflation and population in each subsequent year. By law, inflationary
adjustments are based on the California Department of Finance’s official report on changes in the state’s per capita income or in non-residential
assessed valuation due to new construction. Population adjustments are based on changes in either city or county population
levels.
Article XIII ( B) of the California Constitution provides that the City’s annual appropriations be subject to certain State limitations. This
appropriations limit is often referred to as the Gann Limitation. The City’s limitation is calculated each year and is established by a
resolution of the City Council as a part of the Annual Operating Budget. The Article XIII ( B) limitation for Fiscal Years 2005/ 06 has been
calculated to be $ 37,884,693. This amount was calculated by taking the prior year’s limitation and adjusting it by the total change in
California per capita personal income. The Article XIII ( B) limitation is not a restricting factor for the City of Brentwood. This is due to
the combination of high population growth and reduced Operating Budget Appropriations during the past several years. This factor will
continue to be monitored annually and budget adjustments will be recommended if they are required in future years.
Article XIII ( B) Appropriations Limit for the City of Brentwood
For Fiscal Year 2005/ 06
Appropriations Limit for Fiscal Year 2004/ 05 $ 32,767,242
Population in January 2005 40,912
Population in January 2004 37,246
Percentage Increase in Population - City 9.84
Percentage Increase in Contra Costa County 1.18
California Per Capital Personal Income 5.26
Factor to be applied to Prior Year 1.156176
( Population Factor x Per Capita Factor)
Appropriations Limit for Fiscal Years 2005/ 06 $ 37,884,693
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xli
SIGNIFICANT ACCOUNTING POLICIES
The financial statements for the City of Brentwood are prepared in conformity with GAAP as applied to government units. The
Governmental Accounting Standards Board ( GASB) is the accepted standard- setting body for establishing governmental accounting and
financial reporting principles. The more significant of the City’s accounting policies are described below.
Reporting Entity
The City of Brentwood was incorporated in 1948 as a general law city under the laws of the State of California and enjoys all the rights
and privileges applicable to a General Law City. The City is governed by a five member City Council, under the Council– Manager
form of government. The City provides a full range of services including: Police, Public Works, Economic Development, Planning,
Building, Engineering and Inspection, Parks and Recreation, Housing and General Administrative services. The City also operates
public water and wastewater utilities, as well as providing refuse collection and disposal, and a recycling program. All of these
services are accounted for in the City’s financial statements. The Brentwood Redevelopment Agency was activated on August 13, 1982
pursuant to the State of California Health and Safety Code Section 33000, for the purpose of preparing and carrying out plans for the
improvement, rehabilitation and development of blighted areas within the territorial limits of the City of Brentwood.
Basis of Accounting
Governmental fund types and fiduciary fund types use a modified accrual basis of accounting. Under the modified accrual basis of
accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures
of the current period. Revenues which are accrued include Federal and State grants and subventions, property taxes, transient occupancy
taxes, 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 in the accounting period in which the related fund liability is incurred. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when the payment is due. The accrual
basis of accounting is utilized by proprietary fund types, agency funds and trust funds. Under this method, revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred.
Basis of Budgeting
The basis of budgeting is the same as the basis of accounting. Governmental fund and fiduciary fund types use a modified accrual basis
and the proprietary fund types are budgeted on a full accrual basis. The CAFR shows the status of the City’s finances on the basis of
GAAP. This conforms to the way the City prepares its budget.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xlii
Fund Accounting
The City uses funds 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. The City maintains the following fund types:
Governmental Fund Types
General Fund: The General Fund is the government’s primary operating fund. It accounts for all financial resources of
the general government, 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 Fund: Debt Service Funds account for the accumulation of resources for, and the payment of, long- term debt
principal, interest and related costs.
Capital Projects Fund: Capital Project Funds account for the acquisition and construction of major capital facilities not
financed by Proprietary Funds.
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 or 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.
Fiduciary Fund Types
Agency Funds: Agency Funds account for assets held by the City as trustee or agent for individuals, private organizations, or
other governmental units, and/ or other funds. These funds are custodial in nature ( assets correspond with liabilities) and do not
involve measurement of results of operations.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xliii
LONG- TERM DEBT
The City of Brentwood has an established debt management policy and written guidelines that outline the restrictions that affect the amount
and type of debt issued by the City, the issuance process and the debt management portfolio. A debt management policy improves the
quality of decisions, provides justification for the structure of debt issuance, identifies policy goals and demonstrates a commitment to long-term
financial planning, including a multi- year capital plan. Adherence to a debt management policy signals to rating agencies and the
capital markets that a government is well managed and should meet its obligations in a timely manner.
Debt Policy
The following is an excerpt from the Budget and Fiscal Policies adopted February 24, 2004 that outlines some of the highlights of the
Capital Financing and Debt Management policy.
Debt financing will only be used for one- time capital improvement projects under the following circumstances:
- when the project’s useful life will exceed the term of the financing
- when project revenues or specific resources will be sufficient to service the long- term debt
Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance
expenditures.
Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes, or
developer agreements when benefits can be specifically attributed to users of the facility. Accordingly, development
impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the
cost of constructing necessary community facilities.
The City will not obligate the General Fund to secure long- term financings except when marketability can be significantly
enhanced.
An internal feasibility analysis will be prepared for each long- term financing which analyzes the impact on current and
future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt
service.
The City will conduct financings on a competitive basis for revenue and general fund debt obligations. Negotiated
financing will be used when there is market volatility, the bonds are non rated, or the financing entails the use of complex
security or structure.
The City will seek a rating on any direct debt and will seek credit enhancements such as letters of credit or bond insurance
when it will improve marketing and is cost effective.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xliv
The City will monitor all forms of debt annually coincident with the City’s Financial Plan preparation and review process
and report concerns and remedies, if needed, to the Council.
Debt Obligations
The legal debt limit, as of June 30, 2004, is $ 133,988,904. This is based on the total assessed value of all real and personal property,
$ 3,573,037,432, and the debt limit percentage of 3.75% set by Government Code 25 and 43605. The amount of debt applicable to the debt
limit is $ 6,255,772, comprised of the 2002 General Obligation Bonds, payable from an unlimited ad valorem tax on real property. The debt
margin available, as of June 30, 2004, is $ 127,733,132.
The City’s current debt levels are manageable and should have no adverse effect on future operations. With respect to the city’s direct debt
( general obligation debt), the most recent rating reviews from S& P and Moody’s list overall direct debt at $ 417 per capita and 0.47% of
assessed value. By comparison to other cities these are low, and will decline rapidly given the extraordinary growth the city is experiencing
both in population and assessed value. The City has a 30% General Fund balance target, but consistently exceeds that target.
Historically, most of Brentwood’s bond issues have been negotiated due to their unique structure and the fledgling status of the city’s
credit ratings. The one exception was the 1996 Water and Sewer Revenue Bonds which were sold on a competitive basis. This will
continue to be the case for the City’s Capital Improvement Financing Program ( CIFP) program, which are either non- rated assessment
bonds or complex senior subordinate structures or other complicated lease and/ or redevelopment financings. The city will consider
competitive sales on standard Enterprise Fund and General Obligation bonds, which have established credit ratings and are more
ordinary in nature.
The City of Brentwood’s total long- term debt obligations are segregated below. These schedules contain audited numbers from the June
30, 2004 CAFR. The 1996 Water and Wastewater Revenue Bonds, the 2001 CIP Revenue Bonds and the 2002 General Obligation Bonds
are rated AAA by Standard & Poors and AAA by Moody’s. The city’s underlying general obligation debt rating is A2 by Moody’s. The
2001 Capital Improvement Program ( CIP) Revenue Bonds include $ 4,275,000 for the Brentwood Education & Technology Center
( BETC), and $ 5,940,000 for the CIP Roadway Bonds. The BETC is supported by rental payments from Los Medanos Community
College. The CIP Roadway Bonds are supported by gas tax, Measure C funds and roadway impact fees. The City’s Enterprise Fund debt
is self- supporting with adequate coverage ratios and rate flexibility.
Budget for Fiscal Years 2005/ 06 – 2006/ 07
City of Brentwood Page xlv
Annual Debt Service
FY 2005/ 06 and FY 2006/ 07
Fund Type of Debt Description Amount Due
FY 2005/ 06
Amount Due
FY 2006/ 07
250 Note Payable CCWD Water Connection $ 700,000 $ 700,000
250 Note Payable CCWD Water Entitlement 107,039 -
255 Loan State Water Resources Loan 1,245,629 1,247,072
303 Bond CIP 2001 Revenue Bonds 1,369,244 1,369,806
445 Bond CIP 2001 Revenue Bonds 716,670 717,920
448 Bond 2002 General Obligation 272,456 288,256
450 Lease Capital Lease - Streets 73,325 73,325
540 Lease Capital Lease - Solid Waste 56,248 -
540 Bond Solid Waste Revenue Bond - 355,990
540 Note Payable Koch Financial 200,024 200,024
540 Note Payable BDS 59,078 -
560 Inter- fund Loan Water Facility Fee Loan 66,250 -
560 Bond Water/ Wastewater Revenue Bond 687,011 683,857
560 Loan Water Treatment Plant Loan - 1,350,000
590 Bond Water/ Wastewater Revenue Bond 176,611 175,800
590 Loan State Water Resources Loan 1,020,83
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| Rating | |
| Title | Budget. 2005-2007. |
| Description | Harvested from the web on 8/15/07 |
| Transcript | CITY OF BRENTWOOD OPERATING BUDGET 2005/ 06 – 2006/ 07 Operating Budget Page i City Officials Brian Swisher ............................................................................................................................... ... Mayor Ana Gutierrez...................................................................................................................... ... Vice- Mayor Annette Beckstrand ...................................................................................................... Council Member Robert Brockman .......................................................................................................... Council Member Robert Taylor ................................................................................................................ Council Member Executive Team Donna Landeros................................................................................................................... City Manager Craig Bronzan ........................................................................................ Director of Parks & Recreation Karen Chew......................................................................................................... Assistant City Manager Tom Curry ............................................................................................................ Interim City Attorney Mike Davies ............................................................................................................................ Police Chief Pamela Ehler ........................................ City Treasurer / Director of Finance & Information Systems Cynthia Garcia........................................................................................................... Interim City Clerk Bailey Grewal ....................................................................................................................... City Engineer Howard Sword ............................................................................ Director of Community Development Paul Zolfarelli................................................................................................... Director of Public Works CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page ii Budget Preface City Officials and Administration ............................................................................................................................... .................................... i Table of Contents ............................................................................................................................... ............................................................ ii Budget Message ............................................................................................................................... ............................................................. xi City Organizational Chart ............................................................................................................................... .......................................... xxvi Community Services Location Map ............................................................................................................................... ......................... xxvii Certificate of Award – GFOA ............................................................................................................................... ................................ xxviii Certificate of Award – CSMFO ............................................................................................................................... ................................. xxix Budget Documents ............................................................................................................................... ...................................................... xxx Budget Policy ............................................................................................................................... .......................................................... xxxiii Budget Development Process ............................................................................................................................... .................................. xxxiv Budget Calendar ............................................................................................................................... ....................................................... xxxv City Revenue Sources ............................................................................................................................... ............................................. xxxvii City Expenditures ............................................................................................................................... .................................................... xxxix Constitutional Spending Limits ............................................................................................................................... ..................................... xl Significant Accounting Policies ............................................................................................................................... .................................... xli Long- Term Debt ............................................................................................................................... ........................................................ xliii Capital Improvement Budget Overview ............................................................................................................................... ..................... xlvi Capital Improvement Program Summary ............................................................................................................................... ... xlviii Non- Recurring Capital Costs ............................................................................................................................... ....................... xlvii Capital Improvements for Fiscal Years 2005/ 06 and 2006/ 07 ...................................................................................................... xlix Capital Improvement Program Revenue Summary ......................................................................................................................... liv Capital Improvement Program Accomplishments ............................................................................................................................ lv Resolution No. 2005- 143 ( Adopting the City’s Operating Budget for Fiscal Years 2005/ 06 – 2006/ 07) ......................................................................... lvi Resolution No. 2005- 128 ( Establishing an Appropriations Limit) ........................................................................................................................ lvii Annual Budget Summary ( All Funds) ............................................................................................................................... ................ 1 General Fund Ten Year Projection ............................................................................................................................... .................................................... 11 Fund Balance ............................................................................................................................... ................................................................ 12 Revenue and Interfund Transfers Graph ............................................................................................................................... ....................... 14 Revenue Summary ............................................................................................................................... ......................................................... 15 Revenue Detail......................................................................................................................... ..................................................................... 16 Schedule of Interfund Transfers ............................................................................................................................... .................................... 22 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page iii General Fund ( Cont.) Expenditures Graph ............................................................................................................................... ...................................................... 23 Expenditure Summary ............................................................................................................................... .................................................. 24 Summary of Expenditures by Category ............................................................................................................................... ........................ 26 Personnel Services Expenditure Summary ............................................................................................................................... ................... 27 Supplies and Services Expenditure Summary ............................................................................................................................... .............. 29 Internal Service Expenditure Summary ............................................................................................................................... ........................ 31 Capital Outlay Expenditure Summary ............................................................................................................................... .......................... 33 Legislative ............................................................................................................................... ..................................................................... 35 City Administration Organizational Chart ............................................................................................................................... ..................................................... 38 City Manager ............................................................................................................................... ................................................................ 42 City Clerk ............................................................................................................................... ...................................................................... 45 Human Resources ............................................................................................................................... ......................................................... 48 City Attorney Organizational Chart ............................................................................................................................... ..................................................... 51 City Attorney ............................................................................................................................... ................................................................ 55 Finance and Information Systems Organizational Chart ............................................................................................................................... ..................................................... 58 Administrative Services ............................................................................................................................... ................................................ 62 Purchasing ............................................................................................................................... ..................................................................... 65 Business Services ............................................................................................................................... .......................................................... 68 Financial Services ............................................................................................................................... ......................................................... 71 Non- Departmental ............................................................................................................................... ......................................................... 74 Community Services ............................................................................................................................... ..................................................... 77 Police Organizational Chart ............................................................................................................................... ..................................................... 78 Police ............................................................................................................................... ............................................................................ 82 COPS Universal Hiring Grant ............................................................................................................................... ...................................... 86 COPS in School ............................................................................................................................... ............................................................ 87 Youth Diversion Program ............................................................................................................................... ............................................. 88 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page iv Public Works – Street Maintenance Division Organizational Chart ............................................................................................................................... ..................................................... 89 Street Maintenance ............................................................................................................................... ........................................................ 93 Community Development Organizational Chart ............................................................................................................................... ..................................................... 97 Economic Development ............................................................................................................................... .............................................. 101 Building ............................................................................................................................... ...................................................................... 104 Planning ............................................................................................................................... ...................................................................... 107 Planning Commission ............................................................................................................................... ................................................. 110 Engineering Organizational Chart ............................................................................................................................... ................................................... 112 Development Engineering ............................................................................................................................... .......................................... 116 Construction Inspection ............................................................................................................................... .............................................. 119 Traffic & Transportation ............................................................................................................................... ............................................. 122 NPDES ............................................................................................................................... ........................................................................ 125 Parks and Recreation Organizational Chart ............................................................................................................................... ................................................... 128 Recreation Administration ............................................................................................................................... .......................................... 132 City Pool ............................................................................................................................... ..................................................................... 135 Park and Recreation Commission ............................................................................................................................... ............................... 138 Youth Commission ............................................................................................................................... ..................................................... 140 Park Planning ............................................................................................................................... .............................................................. 142 Cultural Arts ............................................................................................................................... ............................................................... 145 Community Center ............................................................................................................................... ...................................................... 147 Senior Programs ............................................................................................................................... .......................................................... 149 Sports ............................................................................................................................... .......................................................................... 152 Programs ............................................................................................................................... ..................................................................... 155 Landscape Operations ............................................................................................................................... ................................................. 158 Police Activity League ............................................................................................................................... ................................................ 161 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page v Capital Improvement Program Organizational Chart ............................................................................................................................... ................................................... 165 Summary ............................................................................................................................... ..................................................................... 169 Revenue and Expenditure Summary ............................................................................................................................... ........................... 170 Capital Improvement Program Administration ............................................................................................................................... ........... 171 Capital Improvement Program Project Services ............................................................................................................................... ......... 175 Roadway CIP Projects ............................................................................................................................... ................................................ 178 Community Facilities CIP Projects ............................................................................................................................... ............................. 179 Parks and Trails CIP Projects ............................................................................................................................... ..................................... 180 Drainage CIP Projects ............................................................................................................................... ................................................. 181 Solid Waste CIP Projects ............................................................................................................................... ............................................ 182 Water CIP Projects ............................................................................................................................... ...................................................... 183 Wastewater CIP Projects ............................................................................................................................... ............................................. 184 Parks and Recreation Enterprise Revenue and Expense Summary ............................................................................................................................... ................................. 185 Recreation Administration ............................................................................................................................... .......................................... 186 City Pool ............................................................................................................................... ..................................................................... 187 Park and Recreation Commission ............................................................................................................................... ............................... 188 Youth Commission ............................................................................................................................... ..................................................... 189 Planning ............................................................................................................................... ...................................................................... 190 Community Center ............................................................................................................................... ...................................................... 191 Sports ............................................................................................................................... .......................................................................... 192 Programs ............................................................................................................................... ..................................................................... 193 Solid Waste Enterprise Organizational Chart ............................................................................................................................... ................................................... 195 Ten Year Projection ............................................................................................................................... .................................................... 199 Net Assets ............................................................................................................................... ................................................................... 200 Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 201 Revenue and Expense Summary ............................................................................................................................... ................................. 202 Revenue Detail ............................................................................................................................... ............................................................ 203 Expense Detail ............................................................................................................................... ............................................................ 204 Operations ............................................................................................................................... ................................................................... 205 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page vi Solid Waste Enterprise ( Cont.) Utility Billing ............................................................................................................................... .............................................................. 209 Transfer Station ............................................................................................................................... ........................................................... 212 Water Enterprise Organizational Chart ............................................................................................................................... ................................................... 217 Ten Year Projection ............................................................................................................................... .................................................... 221 Net Assets ............................................................................................................................... ................................................................... 222 Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 223 Revenue and Expense Summary ............................................................................................................................... ................................. 224 Revenue Detail ............................................................................................................................... ............................................................ 225 Expense Detail ............................................................................................................................... ............................................................ 226 Operations ............................................................................................................................... ................................................................... 227 Utility Billing ............................................................................................................................... .............................................................. 231 Non- Potable Water ............................................................................................................................... ...................................................... 234 Wastewater Enterprise Organizational Chart ............................................................................................................................... ................................................... 237 Ten Year Projection ............................................................................................................................... .................................................... 241 Net Assets ............................................................................................................................... ................................................................... 242 Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 243 Revenue and Expense Summary ............................................................................................................................... ................................. 244 Revenue Detail ............................................................................................................................... ............................................................ 245 Expense Detail ............................................................................................................................... ............................................................ 246 Operations ............................................................................................................................... ................................................................... 247 Utility Billing ............................................................................................................................... .............................................................. 251 Lateral Maintenance ............................................................................................................................... .................................................... 254 City Rentals Enterprise Organizational Chart ............................................................................................................................... ................................................... 257 Ten Year Projection ............................................................................................................................... .................................................... 261 Net Assets ............................................................................................................................... ................................................................... 262 Historical Revenue and Expense Analysis Graph ............................................................................................................................... ....... 263 Revenue and Expense Summary ............................................................................................................................... ................................. 264 Revenue Detail ............................................................................................................................... ............................................................ 265 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page vii City Rentals Enterprise ( Cont.) CAM Main Rental ............................................................................................................................... ....................................................... 266 College Rental ............................................................................................................................... ............................................................. 268 Incubator Rental ............................................................................................................................... .......................................................... 270 Housing Enterprise Organizational Chart ............................................................................................................................... ................................................... 273 Net Assets ............................................................................................................................... ................................................................... 277 Revenue and Expense Summary ............................................................................................................................... ................................. 278 Revenue Detail ............................................................................................................................... ............................................................ 279 Housing Administration ............................................................................................................................... .............................................. 280 Housing Rental ............................................................................................................................... ........................................................... 283 Special Revenue Funds Reserves ............................................................................................................................... ...................................................................... 285 Revenue Summary ............................................................................................................................... ...................................................... 287 Expenditure Summary ............................................................................................................................... ................................................ 289 Revenue Detail ............................................................................................................................... ............................................................ 291 Gas Tax ............................................................................................................................... ....................................................................... 296 Economic Development ............................................................................................................................... .............................................. 297 Asset Forfeiture ............................................................................................................................... ........................................................... 298 Abandoned Vehicle Abatement ............................................................................................................................... .................................. 299 PEG Media ............................................................................................................................... .................................................................. 300 Measure C ............................................................................................................................... ................................................................... 301 City CIFP Capital ............................................................................................................................... ........................................................ 302 Police Grants ............................................................................................................................... ............................................................... 303 Other Grants ............................................................................................................................... ................................................................ 304 Water Facility ............................................................................................................................... ............................................................. 305 Roadway Improvements ............................................................................................................................... ............................................. 306 Parks & Trails ............................................................................................................................... ............................................................. 307 Storm Drain ............................................................................................................................... ................................................................. 308 Wastewater Facility ............................................................................................................................... .................................................... 309 Community Facilities ............................................................................................................................... .................................................. 310 Open Space ............................................................................................................................... ................................................................. 311 Facility Fee Administration ............................................................................................................................... ........................................ 312 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page viii Special Revenue Funds ( Cont.) Agriculture Administration ............................................................................................................................... ......................................... 313 Agriculture Land Trust ............................................................................................................................... ............................................... 315 Affordable Housing In- Lieu ............................................................................................................................... ....................................... 316 Public Art Administration ............................................................................................................................... ........................................... 317 Public Art Acquisition ............................................................................................................................... ................................................ 318 Parking In- Lieu ............................................................................................................................... ........................................................... 319 Arts Commission Programs ............................................................................................................................... ........................................ 320 98- 1 City Wide Assessment District ............................................................................................................................... ........................... 323 Community Facilities District # 2 ............................................................................................................................... ................................ 327 Community Facilities District # 3 ............................................................................................................................... ................................ 328 Community Facilities District # 4 ............................................................................................................................... ................................ 329 94- 1 Blackhawk LLD Assessment District ............................................................................................................................... ................. 330 95- 5 California Spirit LLD Assessment District ............................................................................................................................... ......... 331 95- 6 Gerry Ranch LLD Assessment District ............................................................................................................................... .............. 332 95- 2 Hawthorn LLD Assessment District ............................................................................................................................... ................... 333 95- 7 Greystone LLD Assessment District ............................................................................................................................... .................. 334 95- 8 Garin LLD Assessment District ............................................................................................................................... .......................... 335 97- 1 Hancock LLD Assessment District ............................................................................................................................... .................... 336 98- 5 Arroyo Seco LLD Assessment District ............................................................................................................................... .............. 337 98- 3 Solana LLD Assessment District ............................................................................................................................... ........................ 338 98- 4 Birchwood Estates LLD Assessment District ............................................................................................................................... ..... 339 99- 3 Spa L ............................................................................................................................... ................................................................... 340 99- 4 California Grove ............................................................................................................................... ................................................. 341 99- 5 Deer Creek ............................................................................................................................... .......................................................... 342 99- 6 Trailside ............................................................................................................................... .............................................................. 343 99- 7 Termo ............................................................................................................................... ................................................................. 344 99- 8 Gerry Ryder ............................................................................................................................... ........................................................ 345 99- 9 Richmond America ............................................................................................................................... ............................................. 346 00- 2 Lyon Woodfield ............................................................................................................................... .................................................. 347 00- 3 CA Orchard ............................................................................................................................... ........................................................ 348 00- 4 Brentwood Park ............................................................................................................................... .................................................. 349 01- 1 Laird Property ............................................................................................................................... ..................................................... 350 02- 2 Oak Street ( Schulyer- Lyon) ............................................................................................................................... ................................ 351 02- 3 Apricot Way ( Pringle) ............................................................................................................................... ........................................ 352 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page ix Special Revenue Funds ( Cont. 02- 4 Braddock & Logan ............................................................................................................................... ............................................. 353 02- 5 Sand Creek & Brentwood Blvd. ............................................................................................................................... ......................... 354 02- 6 Balfour & John Muir ............................................................................................................................... .......................................... 355 02- 7 San Jose & Sand Creek ............................................................................................................................... ....................................... 356 02- 8 Lone Tree Arco ............................................................................................................................... ................................................... 357 02- 9 Balfour Plaza ............................................................................................................................... ...................................................... 358 02- 11 Lone Tree Plaza ............................................................................................................................... ................................................ 359 02- 12 Sunset Industrial ............................................................................................................................... ............................................... 360 02- 13 Stonehaven ............................................................................................................................... ....................................................... 361 03- 3 Brookdale Court ............................................................................................................................... ................................................. 362 03- 6 Arbor Village ............................................................................................................................... ...................................................... 363 03- 7 Garin Ranch Commercial ............................................................................................................................... ................................... 364 04- 2 Balfour Griffith Commercial ............................................................................................................................... .............................. 365 Internal Service Funds Reserves ............................................................................................................................... ...................................................................... 367 Revenue and Expenditure Summary ............................................................................................................................... ........................... 368 Summary of Expenditures by Category ............................................................................................................................... ...................... 369 Emergency Preparedness ............................................................................................................................... ............................................ 371 Information Services ............................................................................................................................... ................................................... 372 Vehicle/ Equipment Replacement ............................................................................................................................... ................................ 375 Information Systems Replacement ............................................................................................................................... ............................. 377 Building Replacement ............................................................................................................................... ................................................. 379 Tuition Program ............................................................................................................................... .......................................................... 382 Fleet Maintenance ............................................................................................................................... ....................................................... 383 Facilities Maintenance Services....................................................................................................................... ........................................... 386 LLD Assessment Replacement ............................................................................................................................... ................................... 389 Insurance ............................................................................................................................... ..................................................................... 390 Debt Service Funds Introduction ............................................................................................................................... ................................................................. 393 Summary of Fund Balances ............................................................................................................................... ........................................ 394 Summary of Revenues ............................................................................................................................... ................................................ 395 Summary of Expenditures ............................................................................................................................... ........................................... 398 CITY OF BRENTWOOD OPERATING BUDGET TABLE OF CONTENTS 2005/ 06 – 2006/ 07 Operating Budget Page x Redevelopment Agency List of Officers ............................................................................................................................... ............................................................ 403 Ten Year Projection ............................................................................................................................... .................................................... 407 Summary ............................................................................................................................... ..................................................................... 408 Revenue ............................................................................................................................... ...................................................................... 409 Expenditure Summary ............................................................................................................................... ................................................ 410 Administration & Projects ............................................................................................................................... .......................................... 411 Low/ Moderate Housing ............................................................................................................................... .............................................. 415 Debt Service ............................................................................................................................... ................................................................ 418 Resolution ............................................................................................................................... ................................................................... 420 Appendix Adopted Equipment List ............................................................................................................................... ............................................. A- 1 Vehicle Replacement List ............................................................................................................................... ........................................... A- 2 Compensation Plan ............................................................................................................................... ..................................................... A- 4 Summary of Positions ............................................................................................................................... ................................................. A- 8 City Basic Data ............................................................................................................................... ......................................................... A- 10 History of Population Growth ............................................................................................................................... ................................... A- 11 Ten Year Personnel History ............................................................................................................................... ...................................... A- 12 Guide to Funds by Fund Numbers ............................................................................................................................... .............................. B- 1 Glossary of Terms ............................................................................................................................... ....................................................... C- 1 Acronyms ............................................................................................................................... .................................................................... D- 1 Index ............................................................................................................................... ........................................................................... E- 1 City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xi June 2005 The Honorable Mayor, Members of the City Council and Citizens of Brentwood City of Brentwood Brentwood, California 94513 Dear Mayor Swisher, Members of the City Council and Citizens of Brentwood: I am pleased to submit the Operating Budget for the City of Brentwood and the Brentwood Redevelopment Agency for Fiscal Years 2005/ 06 and 2006/ 07. The City’s Operating Budget of $ 172.7 million and the Redevelopment Agency’s Budget of $ 10.2 million adhere to the City Council’s Goals and Objectives. These budgets reflect an organization whose top priorities continue to be: Regional Transportation Fiscal Model Attract and Retain Businesses Regional Agricultural Preservation and Development General Plan Update Emergency Preparedness Cultural Arts Master Plan Youth/ Teen Master Plan The City of Brentwood enjoys a very bright future. The standard of new development in the community has provided excellent housing, schools, parks and trails, streets and recreation programs. Our City is safe and clean and our residents appreciate the high quality of life. The City is beginning a new transition phase in which the Council’s policy is to slow down residential development and to pace build out over the next 10- 15 years. The budget for FY 2005/ 06 and FY 2006/ 07 begins to address that transition. City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xii Key to planning for build out is the development of a fiscal model that ensures the City continues to budget conservatively, with revenues exceeding expenditures, and with adequate reserves to cover future liabilities and unexpected emergencies. Staff anticipates that during the next year we will continue refinement of our 10- year fiscal model. The fiscal model will incorporate customer service standards identified by the community and adopted by the City Council. Once adopted by the Council, the fiscal model will be the long term road map for the executive staff to follow. This fiscal model will also identify staffing needs and a strategic plan will be developed. The recommended operating budget does not include any new positions so that we can analyze our staff needs at build out and begin to adjust accordingly. In the upcoming year we are also embarking on a City wide organizational development program which will involve all employees throughout the City organization. The City has an excellent General Plan which will be updated next year. The City continues to improve on our standards for the “ built” City. The organizational development program will ensure the “ people side” of the City, our employees, share a common mission and are effective in providing the highest quality of service to our residents and businesses. We know we cannot do all of this by ourselves. We need to hear from our residents and businesses about their priorities and concerns about their City’s future. Included in the budget is funding for outreach to the community through town hall meetings and active participation. We need to be listening to our community as staff develops the service standards, and we need to be talking to our community so they understand the range of options available. I wish to thank the City Council for providing clear policy direction and goals that have been used to prepare the Operating Budget each year. I would also like to express my appreciation to all those staff members who have taken the time to participate in the development of the Operating Budget. A great deal of effort and attention to detail has gone into the preparation of this budget document, representing many hours of work by staff members throughout the organization. Though the challenges are great, the City is firmly committed to meeting each and every challenge that comes our way. This budget is the next step towards meeting those challenges. By continuing to follow the financial policy set forth by the City Council, Brentwood will deliver the highest level of service permitted by the available resources. Sincerely, Donna Landeros Donna Landeros City Manager City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xiii Mission Statement Elevating Confidence in Government Mission Statement Adopted September 14, 2004 Vision and Culture We create and institutionalize a vision and culture that furthers the goal of Brentwood representing the highest civic standard. We form the organization around these values to create the “ Brentwood Way”: Integrity – uncompromising adherence to morals and ethical principles Passion – boundless enthusiasm for what we do Accountability – answerable for our actions Respect – to feel and show esteem and consideration for others Quality – the highest degree of excellence The “ Brentwood Way” Good enough is never good enough and we find a way to do it better. Striving to be the best. The best is never defined or constrained. It is never reached and we advance the standard every day. Taking the best of both business and government for the benefit of the community. City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xiv BUDGET OVERVIEW This Operating Budget underscores the City Council’s commitment to continue to make cost containment a high priority while adhering to the Budget Development Guidelines. In accordance with these guidelines, the Operating Budget is free from reliance upon non- recurring revenue sources and does not commit to spending more than a conservatively prepared estimate of recurring revenues. Key Budget Initiatives A major change for the General Fund this year was the movement of Parks and Recreation from an Enterprise Fund into the General Fund. Parks and Recreation was originally a Parks district that was substantially supported by its own property tax revenue. When the Parks District was annexed to the City it was accounted for as an Enterprise. In recent years, property taxes and program fee revenues have been partly subsidized by the General Fund in the form of reduced internal service charges. The City has now determined Parks and Recreation is better managed as part of the General Fund. Some of the increases in the Parks and Recreation budget in FY 2005/ 06 are due to the divisions being charged their full share for internal service. The City’s population has increased at an annual average rate of 13.4% over the past decade. However, this tremendous growth is expected to slow down in the upcoming years. The City cannot ignore the fiscal impact that the development slowdown will have, and is taking steps to address this. The first step is that the 2005/ 06 - 2006/ 07 budget does not add any new positions. In FY 2005/ 06 the City is implementing a 10- year plan to minimize its dependence on development impact fees. Beginning in 2005/ 06, the Finance Department will move 20% of its staff, currently funded through the Capital Improvement Program ( CIP), to the General Fund. Parks and Recreation will move all of their staff previously funded through CIP to the Landscape Division. Economic Development will have all of their staff reallocated by the 2006/ 07 budget year. Engineering will begin this same reallocation process in 2006/ 07. Investment yields continued to be at historic lows in FY 2004/ 05. As such, the City’s investment income was lower than anticipated. In addition, the City implemented Governmental Accounting Standards Board ( GASB) Statement No. 40 a year ahead of the required implementation date. GASB 40 requires the City to report investments at fair market value, which also led to lower overall returns. The City is conservatively estimating investment income for the General Fund will be $ 1,250,000 for FY 2005/ 06. City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xv In an effort to attract and retain top quality employees, the City contracted with Johnson and Associates to perform a Classification and Compensation study. The classification portion of the study encompassed all City positions and classifications and included a total of approximately 294 positions currently allocated to 156 classes. The results of the study have increased General Fund personnel costs in FY 2005/ 06 by $ 359,001, and by $ 795,494 City- wide. The City has incorporated the annual CPI increase of 2.4% for all salaries in the FY 2005/ 06 budget and has also included a 3% CPI increase for salaries in FY 2006/ 07. For FY 2005/ 06, a new Facilities Maintenance internal service fund has been established to provide for the custodial, janitorial and maintenance needs of the City's buildings and facilities. The personnel costs for the custodians, which had previously been charged to Building Replacement, will now be funded through this new Facilities Maintenance fund. Since the Building Replacement fund will pay only for major repairs, the building replacement rate charged to the City departments has been substantially lowered. This decrease is reflected in the FY 2005/ 06 Internal Services line item in departmental budgets. Beginning in FY 2006/ 07, the building replacement rate will gradually be increased to ensure the City has enough resources to pay for future building repairs and replacements. One of the biggest challenges local governments have faced over the past couple of years has been the rapid increase in PERS rates. The City’s miscellaneous PERS contribution rate has increased 341% since 2000/ 01. The City’s safety PERS contribution has risen 472% since 2000/ 01. In an effort to help contain costs, the City prepaid the employer portion of PERS retirement for the first time in 2004/ 05, resulting in a budgetary savings of over $ 1 million. This savings will be transferred to the Insurance Fund. The Insurance fund will consist of the savings realized from future prepayments of the employer portion of retirement costs, as well as any savings in worker’s compensation and PERS charges associated with having approved positions which go unfilled. These savings, estimated to be around $ 1.5 million per year, will then be used to pay for the increasing retiree medical costs facing the City. In an effort to raise public awareness of the true costs and rising liabilities of retiree medical benefits, GASB issued Statement No. 45 which addresses how local governments should account for their costs and obligations for retiree healthcare. Statement 45 also establishes reporting and disclosure requirements. The City is required to implement GASB 45 in fiscal year 2008/ 09, and has budgeted for the insurance fund to pay for an actuarial valuation report in 2006/ 07. City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xvi LEGISLATIVE ISSUES Proposition 1A In November 2004, the voters of California approved Proposition 1A, an amendment to the State constitution intended to restore predictability and stability to local government budgets. Proposition 1A: Strengthens prohibitions against unfunded state mandates by requiring the State to suspend state mandates in any year the Legislature does not fully fund those laws. Expands the definition of state mandate to include transfer of responsibility of a program for which the state previously had full or partial responsibility. Prohibits the State from: - Reducing the local Bradley Burns Uniform Sales & Use Tax rate or altering its method of allocation unless complying with Federal law or an interstate compact. - Decreasing VLF revenue from the 0.65% rate without providing replacement funding to cities and counties. - Shifting property taxes from cities, counties or special districts with certain exceptions. Proposition 1A was one part of a 2004/ 05 State Budget Agreement between Governor Schwarzenegger, the Legislature and local governments. The core details of Proposition 1A and the Budget Agreement are outlined below along with their impact on the City’s finances. Cities, counties, special districts and redevelopment agencies will give up $ 1.3B in local revenues in both FY 2004/ 05 and FY 2005/ 06 to help with the State budget crisis. This is referred to as “ ERAF III”, the Education Revenue Augmentation Fund ( ERAF) property tax transfer. The League of California Cities estimates ERAF III will cost Brentwood $ 318,732 for both FY 2004/ 05 and FY 2005/ 06. Eliminates the current Vehicle License Fee ( VLF) backfill from the State’s General Fund and provides these amounts to cities and counties from ERAF. This swapping of dollars takes the majority of the City’s VLF fees and replaces them, dollar for dollar, with property tax funds. This will result in a change in cash flow for VLF revenue but should not have a significant impact upon the total amount of VLF revenue received. Constitutionally protects the rate and method of distribution of the local Bradley- Burns Sales Tax and Transactions and Use Tax. Proposition 1A also guarantees payment of property tax backfill monies lost due to Proposition 57’ s suspension of the ¼ cent sales tax and guarantees the return of the ¼ cent Bradley- Burns sales tax when the bonds purchased as part of Proposition 57 are retired. This addresses the “ triple flip” component of Proposition 57 which suspended one- quarter of City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xvii the Bradley- Burns sales tax, replaced the lost revenues on a dollar- for- dollar basis with funds from the county- wide ERAF property tax funds and increased the State’s sales and use tax by one- quarter percent. The distribution of quarterly sales tax estimates began at the reduced level in September, 2004. The City’s 2005/ 06 – 2009/ 10 CIP reflects these reductions in State sales tax distributions. Brentwood anticipates losing the following in FY 2005/ 06 due to additional revenue taken away by the State: $ 95,000 due to unfunded mandated cost reimbursements; $ 337,000 due to the Governor’s Additional RDA ERAF Shift and $ 200,000 in sales tax revenue due to the “ Triple Flip”. Despite the difficult economic times, the City’s projections have managed to come within 1% of its 2004/ 05 revenue budget, while staying 7% under its budgeted expenditures. This revenue shortfall was unanticipated due to the State’s restructuring of their accrual method for sales tax, resulting in our being paid for only 10.5 months instead of one full year. Most of the expense savings are due to approved personnel positions that were not filled during the year. VLF Loan Repayment The “ VLF Loan” is the result of the State withholding three months of VLF backfill revenues from its normal distribution to cities during FY 2003/ 04. The State’s budget for FY 2004/ 05 calls for the repayment of the “ VLF Loan” in FY 2006/ 07. As a result, the City should receive the $ 559,947 owed in FY 2006/ 07. Measure J and the Urban Limit Line Measure J is a $ 2B transportation funding measure passed by Contra Costa County voters on November 2, 2004. Beginning in 2009, Measure J will withhold millions of dollars, designated for street improvements, from any city that fails to abide by a mutually agreed upon urban limit line. A “ mutually agreed upon” urban limit line requires support from: 1) 75% of the City councils representing 75% of the county’s population; 2) four of the five county Supervisors and 3) approval of a majority of voters in a countywide election. Any city may opt out of the countywide process at any time if their residents approve a City- drawn line. Expansion of the Brentwood urban limit line would result in the following: Gross Acreage Open Space Acreage Net Buildable Acreage Potential Units Potential Jobs 2,034 643 1,391 Residential: 964 2,900 Commercial: 427 14,000 City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xviii ECONOMIC OVERVIEW Fiscal Year 2004/ 05 General Fund revenues are projected to reach $ 31,271,626, which is an increase of $ 2,366,989 or 8.2% from FY 2003/ 04. In the past year the City continued to emphasize growth in the commercial, industrial and retail sectors, approving 16 projects totaling 1,852,860 sq. ft. Brentwood continues to cultivate a vital, thriving and charming historical Downtown consisting of restaurants, unique retail businesses and personal service businesses. Numerous community workshops have been held to develop a community consensus for the Downtown revitalization. All economic indicators point to the City’s continued growth and stability as shown by the following statistics from FY 2003/ 04: The City’s population increased by 11.08% Residential construction valuation increased by 9.87% The median price for new homes increased by 16% The median price for existing homes increased by 19.7% Commercial construction valuation increased by 146.47% Enterprise Funds Generally speaking, enterprise funds are self supporting and recoup their costs through rates charged to the users of the service. Budgetary notes relating to enterprise funds are discussed below. The Solid Waste Enterprise Fund will continue to see revenue growth commensurate with the increase in the City’s annual population levels. Most of these costs are tied to resident needs and demands and will increase accordingly. The Budget includes $ 250,000 for a fleet facility upgrade and $ 82,500 for an upgraded fuel dispensing system. The Solid Waste Enterprise will also begin payments on the possible Series 2006 Revenue Bonds. The bond proceeds will be used for the Solid Waste Transfer station improvements, which include a scale, scale house, litter containment devices, and a new building with a concrete loading pad, as well as other improvements to adequately meet the City’s needs. The Water and Wastewater Enterprise Funds, like the Solid Waste Fund, will continue to see both revenues and expenses increase as the needs for service increase. The Water Fund will also begin payments on a new Water Treatment Plant Loan. Debt service will be approximately $ 1,350,000 annually for the Water Fund, with an equal amount being paid by development impact fees. The Wastewater Fund will begin payment of a State Water Resources Loan in FY 2005/ 06. A Downtown City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xix rate study is underway for both the Water and Wastewater Enterprises to ensure that the rates charged in the future are appropriate. The Wastewater Enterprise fund will fall short of this year’s revenue projections due to budgeted revenue based on the previous rate study. The City Rentals Enterprise includes the Brentwood Education and Technology Center and Los Medanos College. Approximately 22% of the available space at the Technology Center is vacant while 29% is leased by the City to house employees. The money collected does not offset the cost of running the Center and the City has had to provide a subsidy to keep the Brentwood Center open. Next year will be the first time that City Rentals will be charged their full share for internal services, including replacement funds, and because of this the General Fund subsidy has increased by $ 188,632. The Housing Enterprise has been established to help provide an affordable housing program for the citizens of Brentwood. The City creates affordable housing by requiring that 10% of all newly constructed dwelling units be designated as affordable housing for very- low, low and moderate income households. Units must be integrated into each neighborhood and must be built with the same quality, fit and finish as market rate units. The ownership units in this program must remain affordable for 45 years, while the rental units must remain affordable for 55 years. Residential Growth Management Program ( RGMP) The intent of the RGMP is to maintain a consistent sustainable rate of growth over the next 15 to 20 years and to synchronize this growth with public infrastructure and facilities as defined by the CIP. The City issued 1,421 building permits for single- family homes during FY 2003/ 04 and an additional 1,400 in FY 2004/ 05. User Fees The City of Brentwood utilizes a User Fee Model to compute city- wide and departmental overhead factors, full hourly rate costs by City Classification and/ or full costs associated with the provision of selected services. The City reviews and updates their fees on an annual basis based on changes in the Consumer Price Index ( CPI). Examples of City fees covered in the Cost Allocation and Schedule of City fees include: Building, Inspection, Planning, Engineering, Park and Recreation, Water Service, Wastewater Service and Solid Waste Service fees. City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xx ORGANIZATIONAL PRIORITIES Vasco Road Vasco Road is a major thoroughfare which is used by Brentwood residents who work in the Tri- Valley and the Bay Area. Ensuring the safety of travelers on Vasco Road is vital to the uninterrupted flow of commerce for both Brentwood and Contra Costa County. On October 14, 2003 the City Council approved a loan to Contra Costa County, in the amount of $ 1.5 million, for Vasco Road safety and road improvements. The loan included a sunset clause which required construction to begin within six months. On April 13, 2004, the City Council approved an additional $ 500,000 and extended the sunset date an additional eighteen months from the adoption of the resolution. On September 14, 2004 the City Council approved the formation of a Joint Powers Agreement between the County and City. To date there has only been one agreement for an amount not to exceed $ 450,000. Regional Leadership The focus on providing leadership on issues that affect the entire region, such as transportation and economic development continues in FY 2005/ 06. The City Council and City staff will continue to be involved in policy development and issue resolution through its memberships and participation with regional and state- wide organizations. Through these affiliations, the City stays on top of current legislative issues, participates in regional transportation goals and can prepare for impacts caused by the state budget shortfalls. Fiscal Model One of the hallmarks of a progressively managed City government is the ability to develop a vision of its long- term financial environment while simultaneously meeting the immediate demands for outstanding service delivery. To ensure the City remains financially healthy over the next decade, the Finance Department developed a 10- year forecast of the City’s General Fund revenues and expenses. This fiscal model combines a 10- year financial forecast of expenditures, revenues and fund balance with recommendations on how any gaps between revenues and expenditures may be closed. The Finance Department will be enhancing the fiscal model in order to provide a comprehensive, long- term road map for City Council and the Executive staff. The fiscal model will also be updated on a yearly basis as part of the budget process. Vasco Road City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xxi The current fiscal model forecasts cover approximately 98% of General Fund revenues. The most recent data shows the largest revenue sources are property taxes, building fees, administration fees, sales taxes and engineering fees. Based on the current fiscal model, total General Fund revenue sources are forecast to grow from approximately $ 31.3 million in FY 2004/ 2005 to approximately $ 54 million in FY 2013/ 2014. This $ 22.7 million increase equates to an average annual rate of growth of 6.2 percent per year. Outlined below are the significant changes forecasted for the City’s revenue sources over the next ten years: Property tax is forecast to increase from approximately 16% of total General Fund revenues in FY 2005/ 2006, to the largest revenue source at nearly 26% in FY 2013/ 2014. Sales tax is forecast to shift from the fourth largest source of revenue to the second largest source of revenue, becoming 19% of the total revenue in FY 2013/ 2014. Revenue attributable to building fees, currently the second largest source of revenue at approximately 15%, is forecast to decrease to approximately 5% of revenue in FY 2013/ 2014. Other growth related service revenues, including engineering fees ( currently 8% of total General Fund revenues) and planning fees ( currently 2% of total General Fund revenues) are forecast to decline from a combined 10% to a combined 5% of total General Fund revenues in FY 2013/ 2014. Community Facilities District Revenue is forecast to grow in importance, from 1.9% of General Fund revenues in FY 2005/ 06, to approximately 8% of General Fund revenues between FY 2008/ 2009 and FY 2013/ 2014. Redevelopment The Brentwood Redevelopment Agency ( RDA) will focus on developing, implementing and managing the City’s Affordable Housing Program, as well as participate in the creation, preservation and improvement of housing opportunities and support private reinvestment projects within Redevelopment Project Areas. The RDA will continue development of industrial opportunities and job creation at Sunset Industrial Complex and negotiate a public / private partnership to develop a retail / residential mixed land use for the corner at Oak and Walnut and 1000 Central Boulevard. RDA staff will also begin developing and implementing a City- wide marketing program as an economic development strategy. Public infrastructure and improvements within the Redevelopment Project Areas will be funded by the RDA’s tax allocation bond proceeds. Agriculture For decades Brentwood has been known for its bountiful cropland and “ U- pick” fruit stands. However, the rapid population growth in the late ‘ 90s resulted in the loss of farmland. In 2001, the City adopted the Agriculture Preservation Program in order to mitigate and offset the loss of valuable farmland resources. In October 2002, the City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xxii Brentwood Agricultural Land Trust ( BALT), a non- profit corporation, was formed to preserve agricultural land, promote local agriculture and implement the City’s Agricultural Enterprise Program. Public Safety The City Council has put Public Safety as one of its top priorities and is committed to making and keeping Brentwood one of the safest cities in California. Safe streets and low crime rates attract quality residential and commercial growth. The new 43,984 sq. ft. police facility, located at 9100 Brentwood Boulevard, is scheduled to open in July of 2005. In addition to the new police facility, staffing in the Traffic Safety Unit, Investigations Division and Patrols Division serves the goal of making Brentwood a place that its residents are proud to call home. System and Organizational Improvements The City is proposing the acquisition of new financial software. This software will integrate City systems, such as Building Permits, Utility Billing and Parks and Recreation with the financial accounting system. It will also allow the City to bring the Human Resource and Payroll functions in- house, removing the need for third- party services. The Workflow component will automate approval processes City wide and the imaging capabilities will allow for easy sharing of source documents, which will greatly improve the efficiency of all City employees. The City’s Website will become an e- commerce site that will allow users to inquire about and/ or pay their Utility Billing accounts. Information Systems is also currently installing fiber optic systems that will allow City departments to be connected without having to be in the same location. These are just a few of the steps being taken to make efficient and economic use of technology, while providing quality customer service. Public Access Channels One of our new funds this year will be for the Public Access, Educational, and Governmental ( PEG) channels. Comcast has agreed to provide the City with three PEG channels and will pay the City a total of $ 850,000 for these channels. The formation of the PEG channels were also set as a Council Goal at the April 16, 2005 Council Goal Setting Workshop. A design and implementation plan for the cable channel will be established and brought back to Council for approval. City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xxiii MILESTONES AND ACCOMPLISHMENTS Sunset Park Master Plan The completion of the Sunset Park Master Plan and Expansion – This project increased the Sunset Sports Complex from 10 acres to 38 acres making it the only large sports park in the City. The park now includes soccer fields, ball fields, parking lots, a children’s play area, a concession stand and an equestrian staging area. Surface Water Treatment Facility – Acquisition of Treatment Capacity The City Council recently approved an agreement with the Contra Costa Water District ( CCWD). As part of this agreement the City purchased 3,200 acre- feet per year of existing treatment capacity at the Randall- Bold Water Treatment Plant ( RBWTP). An additional component of this agreement provides for the City constructing a scaled down water treatment facility, adjacent to the RBWTP, to treat water purchased under a 1999 agreement between Brentwood and the CCWD. This agreement allows the City to construct a smaller facility than originally anticipated, at a net capital savings of $ 7 million, while ensuring the City has adequate, long- term supplies of treated water. Infrastructure Improvements Pavement Management Program – An annual preventative maintenance program for those City streets selected by the City’s Pavement Management Software. ADA Improvements – Annual ADA compliance efforts now require the identification of problems City- wide. Traffic Calming Installations – On- going roadway circulation improvements. City- wide Sidewalk Replacement – A replacement program to ensure public safety and reduce liability exposure. Expanding Recreation Programs As the population of Brentwood continues to grow, the City is committed to expanding both the park and recreational programs and facilities to meet the increased need for the constructive use of leisure time. Brentwood is becoming a very diverse community, with a large percentage of growth in young families, first time home buyers and active seniors. As a result, the Park and Recreation Department continues to pursue opportunities to enhance the lives of our youth, families and adults of all ages by following the mission to continue to “… add joy to people’s lives”, as evidenced by a sampling of our current programs: Sunset Park Athletic Complex City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xxiv Starry Nights in Brentwood, a free downtown musical series on Friday nights. Come out and Play … at a Family Fun Day, a quarterly program offered at different neighborhood parks. Expansion of the Police Activities League – “ After the Bell” offered at three middle schools. Brentwood Senior Citizens Club – the City has assisted the formation of a non- profit Senior Advisory Board to assist and advise the City in the expansion of senior programs and future park and facility development projects. CC Café, a daily senior nutrition site that is open to all seniors in Brentwood. Youth Commission Job Fair. Day in the Park – Art and Wine Festival. Joint- use community projects, which include four joint- use gymnasiums. New Police Facility For the past several years the Police Department has been residing in an 8,500 square foot building. This space is significantly less then suggested by the needs assessment performed in early 2000. By July 2005, the Police Department will have completed their move to a new, 43,984 square foot facility. The new police station will include holding facilities and a sally port; an Emergency Operations Center; space for a dispatch center; evidence area including viewing; SWAT area; records and reception areas; locker and workout area; a community room and office space. As such, there will be increased costs related to this new building including custodial, janitorial, building replacement and utilities costs. Vineyards at Marsh Creek In July of 2004, the Contra Costa Local Agency Formation Commission ( LAFCO) approved the City’s request to annex 593 acres south of the City limits for the Vineyards project. The project includes a winery, a 2,500 seat amphitheater, executive home sites, a recreation center, a Community College and the establishment of the John Marsh House Park site. Recreation Facility Construction of an 8,300 square foot facility will begin in FY 2005/ 06 that will provide additional services to Brentwood citizens. The facility will be adjacent to the Aquatic Center to allow for a flow between multiple recreational activities. New Police Station City of Brentwood 2005/ 06 – 2006/ 07 Operating Budget Page xxv Sand Creek Park Conceptual planning has begun on this 13+ acre park, which will fulfill the community park need, as per the Park, Trails and Recreation Master Plan for northwest Brentwood. John Marsh Home Restoration Emergency stabilization is now underway to prevent the collapse of the John Marsh House. California State Parks will be the lead in the restoration of the John Marsh House and the development of Pioneer State Park. This project is partially financed through the Vineyards at Marsh Creek. Master Plans General Plan Update – An update is needed to address rapid community changes since the 1993 and 2001 General Plan Updates. It is also necessary to ensure internal consistency between the various elements of the General Plan and to reflect land use changes since 2001. Specific Plan – Downtown, Brentwood Boulevard and Empire Triangle – As directed by the General Plan, the purpose of this Specific Plan is to preserve and enhance the identity and small- town character of Brentwood; promote balanced, diverse and high- quality development patterns within the City; encourage retail and services growth which correspond with local and regional demands and maintain the historical commercial focus and vitality of downtown. John Marsh Home – Then and Now Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxvi CITIZENS CITY COUNCIL City Manager Boards & Commissions City Attorney Finance / IS Engineering Parks and Recreation Police Public Works Administration City of Brentwood Organizational Chart Administration Operations/ Patrol Special Projects Streets Water Wastewater Solid Waste Purchasing Grants Administrative Services Information Services Business Services Financial Services Development Engineering/ NPDES Traffic Construction Inspection Capital Improvement Program Cultural Arts Lighting & Landscape Districts Administration Landscape/ Facilities City- wide Park District Recreation Human Resources City Clerk GIS/ Mapping Community Development Building Planning Housing Economic Development Redevelopment Project Services Agriculture Fleet Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxvii Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxviii The Government Finance Officers Association ( GFOA) and the California Society of Municipal Finance Officers offer a recognition program for public entities to determine whether the City conforms to the highest level of governmental accounting and financial reporting standards. Both GFOA and CSMFO awarded a Distinguished Budget Presentation Award to the City of Brentwood for its two- year budget beginning Fiscal Year 2003/ 04. Its attainment represents a significant accomplishment by a government and its management. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxix Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxx BUDGET DOCUMENTS The Finance Department coordinates the preparation of four key budget documents: the Two- Year Operating Budget ( and annual review), the Five- Year Capital Improvement Program, the Cost Allocation Plan and the Comprehensive Annual Financial Report. The information contained in these documents is the end product of a thorough financial review performed through the combined efforts of staff within the City. On subsequent pages, a brief description of the budget documents and a summary of their intended uses are provided. If You Are Looking For: Where It Is Found: Budget Overview and Policies Budget Trends and Graphs Revenue Detail/ Departmental Expenditures Summaries Personnel Information Four- year Line Item Expenditure Detail Line Item Detail Status of Prior- Year Capital Projects Adopted Current Year Projects Future Projects Anticipated Funding Total Cost by Classification City Staff Billing Rates City Fees ( Available 120 Days after Budget Adoption) Financial Statements, City Statistics, Management Discussion and Analysis Demographics, Management Statement ( Available 180 days after fiscal year end) Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxi Adopted Two Year Operating Budget The Adopted Operating Budget is summarized at a division level. Divisional budgets consolidate program activities into similar service categories within a fund with the intent of reducing the cumbersome nature of a program- based budget document. Every effort has been made to present the budget document in a “ user friendly” format with increased emphasis on trends and written explanations. The Adopted Operating Budget Detail provides a separate line item, object code detail for the budget. Adopted expenditures within each divisional category are detailed with descriptions. Budgets are broken down to the program level and are listed in account number order. Historical information is prepared at a detailed object code level for comparison purposes. Cost data within this document is presented by department. Operational Line Item Budget The Operational Line Item Budget provides line item revenue and expenditure detail which is used by City departments for budget management and tracking purposes. Adopted Five- Year Capital Improvement Program Budget The Adopted Five- Year Capital Improvement Program ( CIP) Budget is a separate document that is annually brought to the City Council for consideration. Prior to City Council’s consideration of the CIP, the document is presented to the Planning Commission to ensure compliance with the General Plan. The CIP matches funding sources with capital expenditures while developing a five- year schedule for completion. The relationship between the CIP and the operating budgets is described in detail beginning on page xlvi. CIP projects are separated into the following seven categories: 1. Roadway Improvements 2. Parks and Trails Improvements 3. Water Improvements 4. Wastewater Improvements 5. Community Facilities Improvements 6. Drainage Improvements 7. Developer Improvements Each project has been assigned a unique identification number that will remain with the project. The project identification number allows the City Council to track and monitor project status over multi- year periods. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxii Cost Allocation Plan The City- wide Cost Allocation Plan ( CAP) is a budget document that will be prepared and distributed approximately 120 days following the adoption of the annual operating budget. A CAP is a widely recognized and well- used method of distributing administrative overhead “ support” costs to the benefiting programs within a City. The City Council adopted its first CAP in December, 1994. That plan established the method of allocating indirect and direct costs. The CAP is updated each year based upon the approved budget data for the current year and actual financial and statistical data for prior years. The City’s CAP also becomes a key document in preparing the City’s User Fee Review and labor charge rates. The City- wide administrative overhead rate for FY 2004/ 05 was 30.86% of direct costs. The CAP calculates departmental and city- wide overhead factors based on distributions of expenditures between the following three categories: personnel costs, operating costs and ongoing capital costs. Assumptions regarding management and non- management positions likewise impact the computation. The methodology for computing these overhead factors is as follows: Department Overhead: To compute the department overhead factor, costs for department management salaries and benefits, plus the cost of associated operating and capital items to be included within overhead, are identified. This cost is then divided by the salary and benefit cost of all non- management employees. The resulting computation is a multiplier that is applied to the hourly rate of a specific position within the department to compute the resulting department overhead associated with providing a designated service. City- wide Overhead: To compute the city- wide overhead factor, general government costs that are not allocable to any line departments are identified. These costs are divided by the total salaries and benefits of all City employees. The result of this computation is a multiplier applied to the hourly rate of a specific position to compute the resulting city- wide overhead associated with providing a designated service. Comprehensive Annual Financial Report The Comprehensive Annual Financial Report ( CAFR) is prepared in accordance with principles generally accepted in the United States of America as promulgated by the GASB. Accounting for all of the City’s activities is centralized under the Finance Department which is responsible for maintaining the integrity of the City’s recorded financial data. The Finance Department, in conjunction with the City’s management, is also responsible for establishing and maintaining an internal control structure designed to ensure that the City’s assets are protected from loss, theft or misuse. The internal control structure is designed to provide reasonable assurance that the City’s objectives are met, while recognizing that this assurance is not absolute. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. City administration believes the existing internal control systems are adequate to provide reasonable assurance that the City’s assets are Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxiii safeguarded against loss and that the financial records are reliable for preparing financial statements and maintaining accountability for assets. This belief is supported by the City’s fifth consecutive “ Unqualified” Audit issued in 2004. BUDGET POLICY The City amended its Budget and Fiscal Policy in February 2004. The purpose of the policy is to establish guidelines for budget development, administration and management as well as outline the City’s fiscal policies in regard to user fee cost recovery goals, capital financing and debt management. The Operating Budget is developed and managed per the policies defined below. Budget Objectives Identify community needs for essential services. Organize the programs required to provide these essential services. Establish program policies and goals which define the nature and level of program services required. Identify activities performed in delivering program services. Propose objectives for improving the delivery of program services. Identify and appropriate the resources required to perform program activities and accomplish program objectives. Set standards to measure and evaluate the: - Output of program activities - Accomplishments of program objectives - Expenditure of program objectives Two- Year Budget The City Council shall adopt a two- year budget for the ensuing fiscal year no later than June 30th of each year. The first year of the two- year budget, the City Council will conduct a budget study session outlining the recommended budget for the two- year period. The second year of the two- year budget, the City Council will conduct a budget study session which focuses on changes being recommended for the second year of the two- year budget. For each of the two years, the City Council will adopt a resolution appropriating and approving the budget for the ensuing fiscal year. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxiv Second Year Budget Before the beginning of the second year of the two- year cycle, the City Council will review progress during the first year and approve appropriations for the second fiscal year. Mid- year Budget Reviews The City Council will formally review the City’s fiscal condition and amend appropriations, if necessary, six months after the beginning of each year. Balanced Budget The City will maintain a balanced budget over the two- year period of the budget. Each fiscal year, operating revenues must fully cover operating expenditures, including debt service. The City will strive to maintain 30% of annual appropriations in the General Fund’s Undesignated Fund Balance. The City will strive to have cash reserves in the Enterprise Funds at an optimal level of 30%. Budget Administration The City Council may, by majority vote, amend or supplement the budget at any time after its adoption. The City Manager has the authority to make administrative adjustments to appropriations as long as there is no funding source incompatibility and provided those changes do not increase the overall appropriations. All budget transfers require the approval of the Director of Finance, or designee, except those affecting personnel which must be approved by the City Manager. BUDGET DEVELOPMENT PROCESS The City uses the following procedures in establishing the budgetary data reflected in the financial statements: Beginning in March, department heads prepare estimates for required appropriations for the two fiscal years commencing the following July 1. The proposed budget includes estimated expenditures and forecasted revenues 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. In May, the City Manager submits to the City Council a proposed operating budget for the upcoming fiscal year. The operating budget includes a summary of the proposed expenditures and financial resources of the City. Public meetings are conducted to obtain public comments. By June 30th, the City Council adopts the operating budget through passage of an adopting resolution. This appropriated budget covers substantially all City expenditures. For all funds, the budget includes all appropriated amounts as originally adopted, plus amendments by the City Council and unexpended prior year appropriations which lapsed at the year end. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxv BUDGET CALENDAR Legend: ● Meeting Date ♦ Due Date Task # Activity Responsibility Oct 2N0o0v4 Dec Jan Feb Mar 2A0p0r5 May Jun Jul 1 First Quarter Report to City Clerk Finance ♦ 10/ 15 2 Mid- Year Budget Adjustments Due to Finance All Departments ♦ 12/ 15 3 Mid- Year Budget Report due to City Clerk Finance ♦ 1/ 7 4 CIP Budget Packets Distributed All Departments ● 1/ 10 5 Mid- Year Budget Report ( Council Meeting) Finance ● 1/ 11 6 Second Quarter Report to City Clerk Finance ♦ 1/ 14 7 Operating Budget Packets Distributed All Departments ● 1/ 25 8 Class on Preparation of Operating Budget All Departments ● 1/ 25 9 Open On- Line Budget System All Departments ♦ 1/ 28 11 Permit Projections due to Finance Bldg., Eng., Finance ♦ 2/ 18 12 CIP Project Budget Sheets Due to Finance All Departments ♦ 3/ 4 13 CIP Budget Session All Project Managers ● 3/ 14 14 Operating Budget Packets Due to Finance All Departments ♦ 3/ 11 15 Close On- Line Budget System Finance ♦ 3/ 11 16 Personnel Budget Due to Finance Human Resources ♦ 3/ 11 17 Park & Recreation Commission CIP Workshop Parks & Finance ● 3/ 24 Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxvi BUDGET CALENDAR ( Cont.) Legend: ● Meeting Date ♦ Due Date Task 2004 2005 # Activity Responsibility Oct Nov Dec Jan Feb Mar Apr May Jun Jul 18 CIP Final Review All Departments ● 3/ 28 19 Operating Budget Review Dept. Heads w/ Dir. of Finance ● 3/ 29 20 CIP Budget Workshop / Public Hearing All Project Managers ● 4/ 12 21 Notice of Negative Declaration Published Engineering ♦ 4/ 15 22 Letter to County Clerk Regarding Public Notice Engineering ♦ 4/ 15 23 Third Quarter Report to City Clerk Finance ♦ 4/ 19 24 Operating Budget Review City Manager and Dir. of Finance ● 5/ 10 25 CIP Budget to Council for Referral to Planning Comm. Finance ● 5/ 10 26 CIP Budget to Planning Commission for Approval Finance / Engineering ● 5/ 17 27 CIP Budget to Council for Adoption Finance ● 5/ 24 28 Operating Budget Workshop / Public Hearing All Departments ● 5/ 24 29 File and Record CIP Documents with County Clerk Engineering ♦ 5/ 25 30 Operating Budget to Council for Adoption Finance ● 6/ 14 31 Post Adopted CIP and Operating Budgets on Web Site Finance ♦ 6/ 15 32 Publish Adopted CIP and Adopted Operating Budgets Finance ♦ 6/ 15 33 Fourth Quarter Report Due to City Clerk Finance ♦ 7/ 15 Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxvii CITY REVENUE SOURCES The City of Brentwood relies on several major revenue sources to balance its General Fund budget. The most important of these revenue sources, based on the percentage of the total revenue budget, are: Property Tax, Building Fees, Administration Fees, Sales Tax, Engineering Fees, Motor Vehicle- in- Lieu Taxes, County Revenue and Investment Income. Together these revenues account for $ 31,731,894, or approximately 79.4% of the total revenue projected in FY 2005/ 06. Listed below are the assumptions used for estimating the major revenue sources for FY 2005/ 06. Property Tax The County of Contra Costa levies a tax of 1% on the assessed valuation of property within the County. The City of Brentwood receives approximately a 13.38% share of this 1% levy for property located within the City limits. Because of State actions to balance its budget during fiscal years 1992/ 93 through 1994/ 95, the City has permanently lost in excess of $ 11M through FY 2004/ 05. The FY 2005/ 06 estimate of property tax revenue, $ 6,209,609, represents 15.5% of the General Fund and is based on an assumed 2% increase in assessed valuation of existing property. Building Fees Permits fees cover the cost of inspection, plan retention, records keeping, materials investigation, special inspection management and overhead. The projected building permit revenue for FY 2005/ 06, $ 3,800,842, reflects 1,200 new, single family dwellings as well as expected commercial development. Plan review fees cover the cost of structural as well as nonstructural plan review, zoning compliance, project condition compliance, design review compliance, record keeping and overhead. Revenue generated from this service is expected to be $ 2,124,386 for FY 2005/ 06. Administration Fees These fees cover the costs associated with staff time involved in administering either a function or a program. The revenue estimate for FY 2005/ 06 is $ 4,710,493. Sales Tax The City of Brentwood receives a 1% share of all taxable sales generated within its borders. In addition to this 1% share, the City receives a portion of an additional voter- approved 1/ 2% sales tax amount, which is dedicated for public safety purposes. The sales tax estimate for FY 2005/ 06 is $ 4,461,250, not including the public safety portion. This is $ 892,250 above the revised FY 2004/ 05 estimate of $ 3,569,000. This increase is forecasted because of an anticipated rise in local economic activity and new businesses locating in Brentwood. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxviii Engineering Fees Engineering fees cover the costs of inspection, review, plan check, record keeping and overhead. Revenue generated from these fees is expected to be $ 3,302,950 in FY 2005/ 06. Motor Vehicle- in- Lieu Tax The State Revenue and Taxation code imposes an annual license fee of 2% of the market value of motor vehicles in lieu of a local motor vehicle property tax. Cities and counties equally share 81.25% of the total tax collected statewide, which is distributed to cities and counties on a per capita basis. Motor Vehicle- in- Lieu tax revenue is expected to increase by 20% in FY 2005/ 06 to $ 2,580,600. This is $ 430,100 more than the FY 2004/ 05 amount of $ 2,150,500. Parks and Recreation Charges and Fees Parks and Recreation provides many services on a “ fee- for- service” basis. The main sources of revenue for Parks and Recreation are recreational programs with registration fees, facility rentals and reimbursement for services. The FY 2005/ 06 estimate for Charges and Fees is $ 1,654,004. Parks and Recreation Property Taxes The County of Contra Costa levies a tax of 1% on the assessed valuation of property within the County. Beginning in FY 2005/ 06, the City of Brentwood Parks and Recreation Department will receive approximately a 3.1% share of this 1% levy for property located within the City limits. The FY 2005/ 06 estimate of County property tax revenue, $ 1,344,025 represents 3.4% of the General Fund. Investment Income Investment income declined in 2004/ 05 due to investment yields being at significantly lower rates than anticipated. Additionally, accounting regulations requiring the City to report investments at fair market value were responsible for the lower overall returns. The City is conservatively estimating investment income will be $ 1,250,000 for FY 2005/ 06. Other Revenue Sources User Fees – Fees charged for the use of services based on the cost recovery goals set by Council. User fees are a major revenue source for the Solid Waste, Water and Wastewater Enterprise Funds. Facility Fees – Developer Impact Fees are collected for all new development in the City of Brentwood. These are fees collected for the purpose of constructing or improving Master Planned City infrastructure. Franchise Fees – Franchise Fees are charged for utility services based on a percentage of the gross revenues of the utility company. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xxxix Total General Fund Revenues – By Major Recurring Revenue Sources Major Recurring Revenues Sources Projected FY 2004/ 05 Budget FY 2005/ 06 Budget FY 2006/ 07 Property Tax 20.4% 15.5% 16.9% Building Fees 17.0% 15.2% 13.0% Administration Fees 13.2% 11.8% 11.4% Sales Tax 11.7% 11.6% 12.5% Engineering Fees 10.7% 8.3% 6.9% Motor Vehicle- In- Lieu 7.1% 6.5% 6.4% Parks and Recreation Charges and Fees 0% 4.1% 3.4% Parks and Recreation Property Taxes 0% 3.4% 4.3% Investment Income 3.3% 3.1% 3.8% CITY EXPENDITURES The City’s budget is financed by the use of various types of funds for its operations. The table below is a summary of these major expenditures with the General Fund highlighted: Projected FY 2004/ 05 Budget FY 2005/ 06 Budget FY 2006/ 07 General $ 36,827,436 $ 39,956,022 $ 41,588,668 Capital Improvement 23,887,381 42,589,835 53,148,331 Enterprise* 25,878,914 26,082,805 28,454,649 Special Revenue 63,098,163 51,284,604 49,161,990 Assessment Districts 3,835,586 5,520,307 6,240,301 Internal Service 5,861,772 7,259,305 7,002,400 Debt Service 12,546,967 13,800,382 13,718,280 Redevelopment Agency 9,427,304 10,226,152 6,484,969 TOTALS $ 181,363,523 $ 196,719,412 $ 205,799,588 * Beginning in FY 2005/ 06, the Parks and Recreation Enterprise moved from Enterprise to the General Fund. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xl CONSTITUTIONAL SPENDING LIMITS Commonly referred to as the Gann Limit, this was a ballot initiative adopted in 1980, and modified by Proposition 111 which passed in 1990, to limit the amount of tax proceeds state and local governments can spend each year. The Gann limit now appears in California’s State Constitution as Article XIII ( B). The limit changes annually and is different for every city. Each year’s limit is based on the amount of tax proceeds that were authorized to be spent in FY 1978/ 79 in each city, and modified for changes in inflation and population in each subsequent year. By law, inflationary adjustments are based on the California Department of Finance’s official report on changes in the state’s per capita income or in non-residential assessed valuation due to new construction. Population adjustments are based on changes in either city or county population levels. Article XIII ( B) of the California Constitution provides that the City’s annual appropriations be subject to certain State limitations. This appropriations limit is often referred to as the Gann Limitation. The City’s limitation is calculated each year and is established by a resolution of the City Council as a part of the Annual Operating Budget. The Article XIII ( B) limitation for Fiscal Years 2005/ 06 has been calculated to be $ 37,884,693. This amount was calculated by taking the prior year’s limitation and adjusting it by the total change in California per capita personal income. The Article XIII ( B) limitation is not a restricting factor for the City of Brentwood. This is due to the combination of high population growth and reduced Operating Budget Appropriations during the past several years. This factor will continue to be monitored annually and budget adjustments will be recommended if they are required in future years. Article XIII ( B) Appropriations Limit for the City of Brentwood For Fiscal Year 2005/ 06 Appropriations Limit for Fiscal Year 2004/ 05 $ 32,767,242 Population in January 2005 40,912 Population in January 2004 37,246 Percentage Increase in Population - City 9.84 Percentage Increase in Contra Costa County 1.18 California Per Capital Personal Income 5.26 Factor to be applied to Prior Year 1.156176 ( Population Factor x Per Capita Factor) Appropriations Limit for Fiscal Years 2005/ 06 $ 37,884,693 Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xli SIGNIFICANT ACCOUNTING POLICIES The financial statements for the City of Brentwood are prepared in conformity with GAAP as applied to government units. The Governmental Accounting Standards Board ( GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below. Reporting Entity The City of Brentwood was incorporated in 1948 as a general law city under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City is governed by a five member City Council, under the Council– Manager form of government. The City provides a full range of services including: Police, Public Works, Economic Development, Planning, Building, Engineering and Inspection, Parks and Recreation, Housing and General Administrative services. The City also operates public water and wastewater utilities, as well as providing refuse collection and disposal, and a recycling program. All of these services are accounted for in the City’s financial statements. The Brentwood Redevelopment Agency was activated on August 13, 1982 pursuant to the State of California Health and Safety Code Section 33000, for the purpose of preparing and carrying out plans for the improvement, rehabilitation and development of blighted areas within the territorial limits of the City of Brentwood. Basis of Accounting Governmental fund types and fiduciary fund types use a modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current period. Revenues which are accrued include Federal and State grants and subventions, property taxes, transient occupancy taxes, 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 in the accounting period in which the related fund liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when the payment is due. The accrual basis of accounting is utilized by proprietary fund types, agency funds and trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Basis of Budgeting The basis of budgeting is the same as the basis of accounting. Governmental fund and fiduciary fund types use a modified accrual basis and the proprietary fund types are budgeted on a full accrual basis. The CAFR shows the status of the City’s finances on the basis of GAAP. This conforms to the way the City prepares its budget. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xlii Fund Accounting The City uses funds 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. The City maintains the following fund types: Governmental Fund Types General Fund: The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, 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 Fund: Debt Service Funds account for the accumulation of resources for, and the payment of, long- term debt principal, interest and related costs. Capital Projects Fund: Capital Project Funds account for the acquisition and construction of major capital facilities not financed by Proprietary Funds. 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 or 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. Fiduciary Fund Types Agency Funds: Agency Funds account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and/ or other funds. These funds are custodial in nature ( assets correspond with liabilities) and do not involve measurement of results of operations. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xliii LONG- TERM DEBT The City of Brentwood has an established debt management policy and written guidelines that outline the restrictions that affect the amount and type of debt issued by the City, the issuance process and the debt management portfolio. A debt management policy improves the quality of decisions, provides justification for the structure of debt issuance, identifies policy goals and demonstrates a commitment to long-term financial planning, including a multi- year capital plan. Adherence to a debt management policy signals to rating agencies and the capital markets that a government is well managed and should meet its obligations in a timely manner. Debt Policy The following is an excerpt from the Budget and Fiscal Policies adopted February 24, 2004 that outlines some of the highlights of the Capital Financing and Debt Management policy. Debt financing will only be used for one- time capital improvement projects under the following circumstances: - when the project’s useful life will exceed the term of the financing - when project revenues or specific resources will be sufficient to service the long- term debt Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes, or developer agreements when benefits can be specifically attributed to users of the facility. Accordingly, development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community facilities. The City will not obligate the General Fund to secure long- term financings except when marketability can be significantly enhanced. An internal feasibility analysis will be prepared for each long- term financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt service. The City will conduct financings on a competitive basis for revenue and general fund debt obligations. Negotiated financing will be used when there is market volatility, the bonds are non rated, or the financing entails the use of complex security or structure. The City will seek a rating on any direct debt and will seek credit enhancements such as letters of credit or bond insurance when it will improve marketing and is cost effective. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xliv The City will monitor all forms of debt annually coincident with the City’s Financial Plan preparation and review process and report concerns and remedies, if needed, to the Council. Debt Obligations The legal debt limit, as of June 30, 2004, is $ 133,988,904. This is based on the total assessed value of all real and personal property, $ 3,573,037,432, and the debt limit percentage of 3.75% set by Government Code 25 and 43605. The amount of debt applicable to the debt limit is $ 6,255,772, comprised of the 2002 General Obligation Bonds, payable from an unlimited ad valorem tax on real property. The debt margin available, as of June 30, 2004, is $ 127,733,132. The City’s current debt levels are manageable and should have no adverse effect on future operations. With respect to the city’s direct debt ( general obligation debt), the most recent rating reviews from S& P and Moody’s list overall direct debt at $ 417 per capita and 0.47% of assessed value. By comparison to other cities these are low, and will decline rapidly given the extraordinary growth the city is experiencing both in population and assessed value. The City has a 30% General Fund balance target, but consistently exceeds that target. Historically, most of Brentwood’s bond issues have been negotiated due to their unique structure and the fledgling status of the city’s credit ratings. The one exception was the 1996 Water and Sewer Revenue Bonds which were sold on a competitive basis. This will continue to be the case for the City’s Capital Improvement Financing Program ( CIFP) program, which are either non- rated assessment bonds or complex senior subordinate structures or other complicated lease and/ or redevelopment financings. The city will consider competitive sales on standard Enterprise Fund and General Obligation bonds, which have established credit ratings and are more ordinary in nature. The City of Brentwood’s total long- term debt obligations are segregated below. These schedules contain audited numbers from the June 30, 2004 CAFR. The 1996 Water and Wastewater Revenue Bonds, the 2001 CIP Revenue Bonds and the 2002 General Obligation Bonds are rated AAA by Standard & Poors and AAA by Moody’s. The city’s underlying general obligation debt rating is A2 by Moody’s. The 2001 Capital Improvement Program ( CIP) Revenue Bonds include $ 4,275,000 for the Brentwood Education & Technology Center ( BETC), and $ 5,940,000 for the CIP Roadway Bonds. The BETC is supported by rental payments from Los Medanos Community College. The CIP Roadway Bonds are supported by gas tax, Measure C funds and roadway impact fees. The City’s Enterprise Fund debt is self- supporting with adequate coverage ratios and rate flexibility. Budget for Fiscal Years 2005/ 06 – 2006/ 07 City of Brentwood Page xlv Annual Debt Service FY 2005/ 06 and FY 2006/ 07 Fund Type of Debt Description Amount Due FY 2005/ 06 Amount Due FY 2006/ 07 250 Note Payable CCWD Water Connection $ 700,000 $ 700,000 250 Note Payable CCWD Water Entitlement 107,039 - 255 Loan State Water Resources Loan 1,245,629 1,247,072 303 Bond CIP 2001 Revenue Bonds 1,369,244 1,369,806 445 Bond CIP 2001 Revenue Bonds 716,670 717,920 448 Bond 2002 General Obligation 272,456 288,256 450 Lease Capital Lease - Streets 73,325 73,325 540 Lease Capital Lease - Solid Waste 56,248 - 540 Bond Solid Waste Revenue Bond - 355,990 540 Note Payable Koch Financial 200,024 200,024 540 Note Payable BDS 59,078 - 560 Inter- fund Loan Water Facility Fee Loan 66,250 - 560 Bond Water/ Wastewater Revenue Bond 687,011 683,857 560 Loan Water Treatment Plant Loan - 1,350,000 590 Bond Water/ Wastewater Revenue Bond 176,611 175,800 590 Loan State Water Resources Loan 1,020,83 |
| PDI.Date.Issued | 2005 |
| PDI.Title | Budget. 2005-2007. |
| OCLC number | 244798608 |
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