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City of Brentwood
2003/ 04 - 2004/ 05
Final Operating
Budget
Prepared by:
Finance Department
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page i
List of Principal Officials
City Officials
Brian Swisher........................................................................................................................ .. Mayor
Annette Beckstrand ........................................................................................................ Vice- Mayor
Ana Gutierrez ......................................................................................................... Council Member
Bill Hill..................................................................................................................... Council Member
Pete Petrovich ........................................................................................................ Council Member
Administrative Staff
John Stevenson............................................................................................................. City Manager
Dennis Beougher .......................................................................................................... City Attorney
Craig Bronzan............................................................................... Director of Parks & Recreation
Mike Davies .................................................................................................................... Police Chief
Karen Diaz............................................................ City Clerk/ Director of Administrative Services
Pamela Ehler ............................................................. Director of Finance & Information Systems
Bailey Grewal............................................................................................................... City Engineer
Mitch Oshinsky.................................................................... Director of Community Development
Howard Sword ........................................................................ Director of Economic Development
Paul Zolfarelli ........................................................................................... Director of Public Works
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page ii
Budget Preface
List of Principal Officials...................................................................................................................... ........................................................ i
Table of Contents....................................................................................................................... .................................................................. ii
Budget Message........................................................................................................................ ................................................................... x
Mission Statement...................................................................................................................... .................................................................. xx
City Council Goals.......................................................................................................................... ............................................................. xxi
City Organizational Chart ............................................................................................................................... ............................................. xxii
Community Services Location Map ............................................................................................................................... ............................. xxiii
Operating Budget Calendar....................................................................................................................... ................................................... xxiv
Budget Guidelines..................................................................................................................... ................................................................... xxvii
Article XIII ( B) Appropriations Limit ............................................................................................................................... .......................... xxxix
History of Population Growth ............................................................................................................................... ...................................... xl
Ten Year Personnel History per Thousand Residents ............................................................................................................................... .. xli
Significant Accounting Policies....................................................................................................................... ............................................ xlii
Long- Term Debt ............................................................................................................................... ........................................................... xlv
Capital Improvement Program ( CIP) Overview and Highlights................................................................................................................... liv
Capital Budget Summary........................................................................................................................ ..................................................... lv
Capital Improvements for Fiscal Years 2003/ 04 and 2004/ 05...................................................................................................................... lvi
Major Capital Improvement Projects for Fiscal Years 2003/ 04 - 2007/ 08 ................................................................................................... lxii
Capital Budget by Fund / Source......................................................................................................................... ........................................ lxiii
Highlights by Category – Five Year ( 2003/ 04 – 2007/ 08) Capital Budget ................................................................................................. lxiv
City of Brentwood Economic Outlook ............................................................................................................................... ......................... lxv
Resolution No. 2893 ( Adopting the City’s Operating Budget for Fiscal Years 2003/ 04 – 2004/ 05)................................................................................. lxvii
Resolution No. 2892 ( Establishing an Appropriations Limit) ............................................................................................................................... ...... lxviii
All Funds Annual Budget Summary........................................................................................................................ ............................... 1
General Fund
Ten Year Projection ............................................................................................................................... .......................................................... 9
Fund Balance ............................................................................................................................... ..................................................................... 10
Revenue Graph ............................................................................................................................... .................................................................. 12
Revenue ............................................................................................................................... ............................................................................. 13
Schedule of Interfund Transfers...................................................................................................................... .................................................. 17
Expenditure Graph.......................................................................................................................... .................................................................. 18
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page iii
General Fund ( Cont.)
Expenditure Summary ............................................................................................................................... ....................................................... 19
Expenditure Line Item Summary by Category ............................................................................................................................... .................. 21
Legislative.................................................................................................................... ..................................................................................... 30
City Administration
Organizational Chart.......................................................................................................................... ............................................................... 33
City Manager ............................................................................................................................... ..................................................................... 37
City Clerk.......................................................................................................................... ................................................................................ 40
Human Resources ............................................................................................................................... .............................................................. 43
City Attorney
Organizational Chart.......................................................................................................................... ............................................................... 46
City Attorney ............................................................................................................................... ..................................................................... 50
Economic Development
Organizational Chart.......................................................................................................................... ............................................................... 53
Economic Development.................................................................................................................... ................................................................ 57
Finance and Information Systems
Organizational Chart.......................................................................................................................... ............................................................... 60
Finance........................................................................................................................ ...................................................................................... 64
Purchasing..................................................................................................................... .................................................................................... 67
Non- Departmental................................................................................................................... .......................................................................... 70
Community Facilities..................................................................................................................... ................................................................... 73
Village Resource Center ............................................................................................................................... .................................................... 74
Dimes- A- Ride ............................................................................................................................... .................................................................... 75
Police Activity League ( PAL) ............................................................................................................................... ........................................... 76
Police
Organizational Chart.......................................................................................................................... ............................................................... 77
Police ............................................................................................................................... ................................................................................. 81
COPS Universal Hiring Grant ............................................................................................................................... ........................................... 85
COPS More Civilian Grant.......................................................................................................................... ..................................................... 86
COPS in School ............................................................................................................................... ................................................................. 87
Parks and Recreation – Landscape Division
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page iv
Organizational Chart.......................................................................................................................... ............................................................... 88
Landscape Operations..................................................................................................................... .................................................................. 92
Public Works – Street Division
Organizational Chart.......................................................................................................................... ............................................................... 95
Streets & Storm Drain Operations ............................................................................................................................... ..................................... 99
Community Development
Organizational Chart.......................................................................................................................... ............................................................... 103
Building ............................................................................................................................... ............................................................................. 107
Planning Division ............................................................................................................................... .............................................................. 110
Planning Commission ............................................................................................................................... ........................................................ 113
Engineering
Organizational Chart.......................................................................................................................... ............................................................... 115
Development Engineering ............................................................................................................................... ................................................. 119
Construction Inspection ............................................................................................................................... ..................................................... 122
Traffic & Transportation................................................................................................................. .................................................................. 125
NPDES.......................................................................................................................... .................................................................................... 128
Capital Improvement Program
Organizational Chart.......................................................................................................................... ............................................................... 131
Summary ............................................................................................................................... ............................................................................ 135
Revenue ............................................................................................................................... ............................................................................. 136
Expenditures ............................................................................................................................... ...................................................................... 138
Capital Improvement Program........................................................................................................................ .................................................. 139
Roadway Projects ............................................................................................................................... .............................................................. 142
Community Facilities..................................................................................................................... ................................................................... 145
Parks and Recreation Enterprise
Organizational Chart.......................................................................................................................... ........................................................... 147
Operations Ten Year Projection..................................................................................................................... ............................................... 151
Summary ............................................................................................................................... ........................................................................ 152
Historical Revenue and Expense Analysis Graph.......................................................................................................................... ............... 153
Parks and Recreation Enterprise ( Cont.)
Revenue ............................................................................................................................... ......................................................................... 154
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page v
Expenditure Summary ............................................................................................................................... ................................................... 158
Recreation Administration ............................................................................................................................... ............................................. 161
City Pool ............................................................................................................................... ........................................................................ 164
Parks and Recreation Commission ............................................................................................................................... ................................ 167
Youth Commission ............................................................................................................................... ........................................................ 169
Planning....................................................................................................................... ................................................................................. 171
Arts Commission ............................................................................................................................... ........................................................... 175
Community Center......................................................................................................................... ............................................................... 178
Sports......................................................................................................................... ................................................................................... 181
Programs ............................................................................................................................... ........................................................................ 183
CIP Projects ............................................................................................................................... ................................................................... 185
Replacement.................................................................................................................... .............................................................................. 187
Solid Waste Enterprise
Organizational Chart.......................................................................................................................... ............................................................... 189
Operations and Debt Ten year Projection ............................................................................................................................... .......................... 193
Summary ............................................................................................................................... ............................................................................ 194
Historical Revenue and Expenditure Analysis Graph.......................................................................................................................... ............. 195
Revenue ............................................................................................................................... ............................................................................. 196
Expenditures ............................................................................................................................... ...................................................................... 197
Expenditure Summary ............................................................................................................................... ....................................................... 198
Operations..................................................................................................................... .................................................................................... 199
Utility Billing........................................................................................................................ ............................................................................ 203
Transfer Station........................................................................................................................ ......................................................................... 206
Capital Projects ............................................................................................................................... .................................................................. 210
Replacement.................................................................................................................... .................................................................................. 211
Water Enterprise
Organizational Chart.......................................................................................................................... ............................................................... 213
Operations Ten Year Projection..................................................................................................................... ................................................... 217
Summary ............................................................................................................................... ............................................................................ 218
Historical Revenue and Expense Analysis Graph.......................................................................................................................... ................... 219
Revenue ............................................................................................................................... ............................................................................. 220
Water Enterprise ( Cont.)
Expenditures ............................................................................................................................... ...................................................................... 221
Expenditure Summary ............................................................................................................................... ....................................................... 222
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page vi
Operations..................................................................................................................... .................................................................................... 223
Utility Billing........................................................................................................................ ............................................................................ 227
Non- Potable Water.......................................................................................................................... .................................................................. 230
CIP Projects ............................................................................................................................... ....................................................................... 232
Replacement.................................................................................................................... .................................................................................. 235
Debt Service........................................................................................................................ .............................................................................. 236
Wastewater Enterprise
Organizational Chart.......................................................................................................................... ............................................................... 237
Operations Ten Year Projection..................................................................................................................... ................................................... 241
Summary ............................................................................................................................... ............................................................................ 242
Historical Revenue and Expenditure Analysis Graph.......................................................................................................................... ............. 243
Revenue ............................................................................................................................... ............................................................................. 244
Expenditures ............................................................................................................................... ...................................................................... 245
Expenditure Summary ............................................................................................................................... ....................................................... 246
Operations..................................................................................................................... .................................................................................... 247
Utility Billing........................................................................................................................ ............................................................................ 251
CIP Projects ............................................................................................................................... ....................................................................... 254
Replacement.................................................................................................................... .................................................................................. 256
City Rental Enterprise
Organizational Chart.......................................................................................................................... ............................................................... 257
Operations Ten Year Projection..................................................................................................................... ................................................... 261
Summary ............................................................................................................................... ............................................................................ 262
Historical Revenue and Expense Analysis Graph.......................................................................................................................... ................... 263
Revenue & Expenditures Summary........................................................................................................................ .......................................... 264
CAM Main Rentals........................................................................................................................ ................................................................... 265
College Rental......................................................................................................................... .......................................................................... 267
Incubator Rental......................................................................................................................... ....................................................................... 269
Development Services Fund
Revenue ............................................................................................................................... ............................................................................ 273
Expenditure Summary ............................................................................................................................... ....................................................... 275
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page vii
Special Revenue Funds
Reserves ............................................................................................................................... ............................................................................. 277
Revenue ............................................................................................................................... ............................................................................. 279
Gas Tax............................................................................................................................ ................................................................................. 284
Economic Development Fund........................................................................................................................... ................................................ 285
Asset Forfeiture Fund ............................................................................................................................... ........................................................ 286
Abandoned Vehicle Abatement Fund ............................................................................................................................... ................................ 287
Measure C.............................................................................................................................. ........................................................................... 288
Youth Diversion Program........................................................................................................................ ......................................................... 289
Police Grants......................................................................................................................... ............................................................................ 292
Other Grants......................................................................................................................... ............................................................................. 293
Water Facility ............................................................................................................................... .................................................................... 294
Roadway Improvements ............................................................................................................................... .................................................... 295
Parks & Trails ............................................................................................................................... .................................................................... 296
Storm Drain.......................................................................................................................... ............................................................................. 297
Wastewater Facility ............................................................................................................................... ........................................................... 298
Community Facilities Fund........................................................................................................................... .................................................... 299
Open Space ............................................................................................................................... ....................................................................... 300
Facility Fee Administration ............................................................................................................................... ............................................... 301
Agriculture Conservation................................................................................................................... ............................................................... 302
98- 1 City Wide Assessment District....................................................................................................................... .......................................... 304
Community Facilities District # 2.............................................................................................................................. ........................................ 308
Community Facilities District # 3.............................................................................................................................. ........................................ 309
94- 1 Blackhawk LLD Assessment District....................................................................................................................... ................................ 310
95- 5 California Spirit LLD Assessment District....................................................................................................................... ........................ 311
95- 6 Gerry Ranch LLD Assessment District ............................................................................................................................... ..................... 312
95- 2 Hawthorn LLD Assessment District....................................................................................................................... .................................. 313
95- 7 Greystone LLD Assessment District ............................................................................................................................... ......................... 314
95- 8 Garin LLD Assessment District....................................................................................................................... ......................................... 315
97- 1 Hancock LLD Assessment District ............................................................................................................................... ........................... 316
98- 5 Arroyo Seco LLD Assessment District ............................................................................................................................... ..................... 317
Special Revenue Funds ( Cont.)
98- 3 Solana LLD Assessment District....................................................................................................................... ....................................... 318
98- 4 Birchwood Estates LLD Assessment District....................................................................................................................... .................... 319
99- 3 Spa L.............................................................................................................................. ........................................................................... 320
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page viii
99- 4 California Grove.......................................................................................................................... ............................................................. 321
99- 5 Deer Creek.......................................................................................................................... ...................................................................... 322
99- 6 Trailside...................................................................................................................... .............................................................................. 323
99- 7 Termo ............................................................................................................................... ........................................................................ 324
99- 8 Gerry Ryder ............................................................................................................................... ............................................................... 325
99- 9 Richmond America........................................................................................................................ ........................................................... 326
00- 2 Lyon Woodfield...................................................................................................................... .................................................................. 327
00- 3 CA Orchard ............................................................................................................................... ............................................................... 328
00- 4 Brentwood Park ............................................................................................................................... ......................................................... 329
01- 1 Laird Property....................................................................................................................... .................................................................... 330
02- 2 Oakstreet ( Schulyer- Lyon) ............................................................................................................................... ....................................... 331
02- 3 Apricot Way ( Pringle) ............................................................................................................................... ............................................... 332
02- 4 Braddock & Logan ............................................................................................................................... .................................................... 333
02- 5 Sand Creek & Brentwood Blvd. ............................................................................................................................... ............................... 334
02- 6 Balfour & John Muir ............................................................................................................................... ................................................. 335
02- 7 San Jose & Sand Creek.......................................................................................................................... ................................................... 336
02- 8 Lone Tree Arco........................................................................................................................... .............................................................. 337
02- 9 Balfour Plaza ............................................................................................................................... ............................................................. 338
Internal Services Funds
Reserves ............................................................................................................................... ............................................................................. 339
Revenue ............................................................................................................................... ............................................................................. 340
Emergency Preparedness ............................................................................................................................... ................................................... 345
Information Services....................................................................................................................... .................................................................. 346
Vehicle/ Equipment Replacement.................................................................................................................... .................................................. 349
Information Systems Replacement ............................................................................................................................... .................................... 351
Building Replacement.................................................................................................................... ................................................................... 353
Tuition Program........................................................................................................................ ........................................................................ 356
Fleet Maintenance.................................................................................................................... ......................................................................... 357
LLD Assessment Replacement ............................................................................................................................... .......................................... 360
Debt Service Funds
Summary of Fund Balances ............................................................................................................................... ............................................... 361
Summary of Revenues ............................................................................................................................... ....................................................... 362
Summary of Expenditures................................................................................................................... .............................................................. 365
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
TABLE OF CONTENTS
City of Brentwood Page ix
Redevelopment Agency
List of Officers....................................................................................................................... ........................................................................... 369
Ten Year Projection ............................................................................................................................... .......................................................... 373
Summary ............................................................................................................................... ............................................................................ 374
Revenue ............................................................................................................................... ............................................................................. 375
Expenditures ............................................................................................................................... ...................................................................... 377
Administration & Projects ............................................................................................................................... ................................................. 378
Low/ Moderate Housing ............................................................................................................................... ..................................................... 382
Debt Service........................................................................................................................ ................................................................................ 385
North Brentwood RDA Administration ............................................................................................................................... .............................. 387
North Brentwood RDA Debt Service ............................................................................................................................... .................................. 388
Resolution No. RA- 69 ( Adopting RDA Budget) ............................................................................................................................... ....................... 389
Appendix
Adopted Equipment List ............................................................................................................................... .................................................... A- 1
Vehicle Replacement Fund List........................................................................................................................... ............................................. A- 3
Compensation Plan ............................................................................................................................... ............................................................ A- 5
New Personnel Requests....................................................................................................................... ............................................................ A- 8
Summary of Positions ............................................................................................................................... ........................................................ A- 9
Basic Data ............................................................................................................................... .......................................................................... A- 11
Guide to Funds by Fund Numbers ............................................................................................................................... ..................................... B- 1
Glossary....................................................................................................................... ..................................................................................... C- 1
Acronyms....................................................................................................................... ................................................................................... D- 1
Index.......................................................................................................................... ....................................................................................... E- 1
City of Brentwood Page x
June 2003
The Honorable Mayor and City Council Members
City of Brentwood
Brentwood, California 94513
Dear Mayor Swisher and Members of the City Council:
I am pleased to submit the Operating Budget for the City of Brentwood and Brentwood Redevelopment Agency for Fiscal Years
2003/ 04 and 2004/ 05. The City’s Operating Budget of $ 180 million and the Redevelopment Agency’s Budget of $ 7.4 million
adhere to the City Council’s Goals and Objectives. These budgets reflect an organization whose top priorities continue to be:
Provide and build public facilities
Provide and maintain an adequate public infrastructure
Plan and manage growth to maintain and enhance our small town character
Enhance and promote Brentwood’s economic vitality
Provide friendly customer service
Finance has taken each department step- by- step through the entire budget process. Hand in hand with Brentwood’s growth, are
many policy challenges facing the City. Brentwood possesses growing service demands and a limited degree of revenue and
expenditure flexibility. The practical constraints on expenditure reductions is reflected in a General Fund expenditure rate per capita
that is below average for California cities of similar size. The City’s strong fund balance levels, additional reserves and prudent
fiscal management allow for us to be prepared for future growth. This budget includes anticipated state budget cuts to the Vehicle
License Fee ( VLF) “ backfill”. The legislations establishing the backfill approach was enacted in 1998 as part of a larger package
that also reduced the VLF tax paid by consumers. A voter- passed constitutional amendment in 1986 earmarks the VLF as a source of
local government revenue. The backfill was intended to cover the loss of revenue to local governments, in effect shifting the burden
of the consumer tax cut to the state general fund. However, many of the expenditure reallocations in this budget are being
recommended in preparation for any additional State budget cuts.
City of Brentwood Page xi
This budget includes, but is not limited to, the following:
Increase of four ( 4) Police officers to comply with the 1.5 sworn positions per 1,000 residents – FY 2003/ 04
$ 179,268 for Police Activities League Program
Includes new staff for Arts Commission FY 2004/ 05
Contribution of $ 432,000 for Fire Department/ EMT Service each year
Continued support to the Library - $ 97,611
Funding for new accounting software
This Operations Budget underscores the City Council’s commitment to continue to make cost containment a high priority. These
Budgets adhere 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.
The Budget for the City’s other funds include the ongoing support and services for the activities in the Enterprise, Debt Service, and
Special Revenue Funds. The Operating Budget has also been prepared in conjunction with the City’s Five- Year Capital
Improvement Program for Fiscal Years 2003/ 04 – 2007/ 08.
The Operating Budget is a flexible- spending plan and is the legal authority for departments to commit financial resources to provide
services within the City of Brentwood. The Operating Budget will continue to be reviewed quarterly or sooner if necessary, to allow
the City Council to respond to changes in the economy or development community in a timely manner.
REVENUES AND ECONOMIC CONDITIONS
Fiscal Year 2002/ 03 General Fund revenues are projected to reach $ 23,441,564, an increase of $ 4,067,921 or 21% from FY 2001/ 02,
and reflect the continued growth of the local economy. In the past year the City has experienced significant interest in relocation and
expansion of existing businesses. The City has continued to work with the Chamber of Commerce and Economic Development in
its effort to encourage either the expansion or relocation of industries that generate local sales tax and employment advantages.
City of Brentwood Page xii
Economic Highlights
Business Licenses: Business License revenues are expected to increase from $ 106,500 to $ 300,000 for FY 2003/ 04. This projected
increase is due to the new business license tax that was passed by the voters in November 2002, new businesses that are expected to
come to Brentwood, and continued code enforcement.
Franchise Fees: Franchise Fee revenue is anticipated to increase from $ 414,116 to $ 496,939 due to population growth and
commercial development.
Property Tax: The 2003/ 04 revenue estimate for property taxes is based on an assumed 2% increase in assessed valuation of
existing property. Future additional assessed valuation increases will be partially offset by the impact of pending assessed valuation
appeals by property owners. The FY 2003/ 04 estimate of $ 3,664,727 represents approximately 13% of the total General Fund
revenues. In fiscal year 2002/ 03 the City’s assessed valuation rose by 29.9%, which was 22% greater than the increase experienced
county- wide at 8%.
Vehicle License Fees: This approximately $ 1.9 million revenue source is not safe from State takeaway due to continuing budget
uncertainty on the State level. We are concerned that the State may act further to lower the amount of the fee that local governments
receive. The State makes up the balance of the vehicle license fee from its general fund, thereby trading one of our rather constant
revenue sources for one subject to the impulse of the State legislature. This revenue has been reduced in anticipation of State budget
cuts.
Investment Interest: Investment interest is anticipated to increase from $ 1,200,000 in FY 2002/ 03 to $ 1,800,000 in FY 2003/ 04.
Our projection assumes that the national and state economies will continue to expand at subdued rates until mid- 2003, when
improvements in business spending and export sales start to boost overall economic growth. Although interest rates are at a 40 year
low, Brentwood continues to show an increase in consumer confidence and exponential growth with new home construction, the
addition of several large chain outlets on the frontier and residents’ quest for a sophisticated way of life. Brentwood is also on the
cutting edge of technology, which allows a small City like Brentwood to continue to reach for their peak production frontier.
Permits and Charges for Services: An overall increase from $ 8,364,326 to $ 9,242,540 is projected in FY 2003/ 04. This increase
is due to the continued growth in building inspection and plan check fees.
City of Brentwood Page xiii
KEY ECONOMIC ISSUES
PRIORITIES AND ISSUES FOR THE CURRENT YEAR:
Global Economy: In FY 2002/ 03 we were concerned about how the war in Iraq would affect us and our economic and financial
problems. While our local economy experienced healthy economic growth and low inflation, the high- tech industry in the Bay Area
faltered from the slowdown in the demand for computers and electronic goods. There are signs that the downturn is ending and a
recovery could begin soon.
Economic Development: FY 2002/ 03 saw positive economic news for the City of Brentwood with growth in population, residential
construction, sales and median prices and rapidly accelerating commercial and industrial development. Until recently, Brentwood
was a small, rural, agricultural community. The need for housing in the Bay Area in the early 1990’ s prompted Brentwood’s growth
at a rate of 10% to 15% per year. The City’s population has increased steadily over the last fiscal year as predicted and the
development of single- family homes, commercial sites and infrastructure reflects the increase in this expanding population.
The City issued 1,160 building permits for single- family homes during the previous fiscal year. To keep up with the growth
demands, infrastructure development also was at a high level with several large projects at various stages of design, construction or
completion for the year.
Business License Tax: The City of Brentwood has developed additional revenue from business license tax by citizens passing
Measure D, which increased our tax by moving to gross receipts. This revenue is significant because it is not considered
discretionary and therefore is not subject to state take away.
Rate Studies: Rate studies have been completed for the Water, Sewer and Park and Recreation Enterprises. The rate study for
Solid Waste is currently underway and is expected to be completed by September 2003. This is to ensure collection of user fees
and/ or utility rates for services provided to the public.
PRIORITIES AND ISSUES FOR THE BUDGET YEAR:
Advocacy on Strategic Legislative Issues: Resources will be dedicated to advocating appropriate and equitable solutions to issues
that affect our community and the region, including transportation issues and the fiscal stability of the City. Resources are being
City of Brentwood Page xiv
allocated to allow the City Council the opportunity to take a more direct role in this advocacy work. Funds for staff and advocacy
consultants have also been included in the budget.
Redevelopment: The Brentwood Redevelopment Agency ( RDA) will continue its investigation of a multi- level public parking
structure with ground floor retail space, and a retail/ restaurant project, both in the Downtown area. RDA staff will also begin
negotiations for a reimbursement agreement for roadway improvements at the Central Business Park, a 40- acre, mixed use
commercial and housing project. The implementation of several existing workforce housing projects, plus consideration of the
RDA’s participation in proposed and upcoming workforce housing projects, will be part of the RDA’s housing programs and
projects. Public infrastructure and improvements within the Redevelopment Project Areas, of approximately $ 3 million, will be
funded by the RDA’s tax allocation bond proceeds.
System and Organizational Improvements: The City will be acquiring and implementing new financial software that will allow
integration with all City systems. The City’s Website has become an e- commerce site and will be working on the ability to allow
users to inquire about their Utility Billing accounts or Business License information. 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 some steps
being taken to make good, economic use of technology and provide quality customer service.
Regional Leadership: The focus on providing leadership on issues that affect the entire region, such as transportation and
economic development, will continue in FY 2003/ 04. The City Council and staff will continue to be involved in policy development
through its memberships and participation in the Economic Development Alliance for Business, Contra Costa Economic Partnership
and the state sponsored Inter- Regional Partnership.
Fiscal Model: The City of Brentwood has contracted the services of Gruen & Gruen + Associates ( GG+ A) to assist in the
preparation of a 10- year Fiscal Model. GG+ A will monitor this process and develop a strategic plan for the next ten years that will
enable the city to continue its long run of fiscal health. The initial tasks have been to provide assistance to representatives within all
the departments to improve accuracy within the individual departments’ projections. GG+ A’s economic and market analysts assisted
in the financial process by providing economic and market forecasting, as required, to refine and update the exogenous determinants
of costs and revenues. In all likelihood, these forecasts relate alternative economic and marketing input scenarios so as to enable the
core team and the Council to consider the short run and the long run implications of alternatively likely economic and growth
futures.
Strategic Opportunities for the Future: We recognize the importance of taking a long- range view for both the City and the
organization. The City Council and the executive management team will work together to discuss community issues and
City of Brentwood Page xv
development priorities for change and improvement. Among other strategic planning efforts are the partnerships with the Police
Activities League ( PAL), the addition of a John Muir Medical Center in Brentwood and joint partnerships with Heritage High
School on ball field, pool and gymnasium use. To that end, the City is preparing a ten- year fiscal forecast.
City Salaries: Effective July 1, 2003, the City Council changed the pay policy from 10% above the mean to the 85th percentile of
designated survey cities. The survey cities include: Antioch, Benicia, Livermore, Manteca, Pittsburg, Pleasant Hill, Pleasanton,
Tracy and Vacaville. Also on the list are: Contra Costa County as a major area employer, Contra Costa Water District for water
only, Dublin San Ramon Services District for wastewater only, BFI and Waste Management for solid waste only. The July 1, 2003
pay plan adjustment includes updated salary survey information from the designated survey list provided above.
Levels of Service: In light of budget pressures stemming from the general economy and looming state takeaways, the City of
Brentwood will strive to maintain or surpass its current levels of service. This goal will be aided by the increase in salaries in that it
will allow the City to hire and keep quality staff.
Vehicle License Fee: The most recent Governor’s Budget Revision ( May 2003) contemplates fully funding Vehicle License Fees
revenues for local government. Under this proposal, the “ trigger” for VLF will be pulled some time in July, insuring 100% full funding of
VLF. What this means to the City of Brentwood is approximately $ 1.9 million in revenue. We have adjusted the 2003/ 04 and 2004/ 05
budgets with the anticipated reduction of the backfill from the State.
MILESTONES AND ACCOMPLISHMENTS
For FY 2002/ 03 the City Development activity surpassed the City’s budgeted projections. Under residential development, the City’s
budget was built with the projection of issuing 850 new single family dwelling permits. It is estimated that with the close of FY
2002/ 03, the City will have issued approximately 1,400 permits. Listed below are just a few of the City Council’s accomplishments:
Completed Wastewater Treatment Plant – The completion of this plant will ensure that treatment facilities are
available for the expected growth of the City.
Business License Tax – Measure D was passed by citizens on November 5, 2002. A flat tax was replaced with a tax
based on gross receipts.
Formed Community Facilities District for Fire and Open Space – ensures a long- term revenue stream. These funds
are non- discretionary and not subject to state takeaway.
City of Brentwood Page xvi
Formed Agricultural Trust – The Brentwood Agricultural Land Trust was formed on October 24, 2002 to help
implement the City’s Agricultural Enterprise Preservation Program and mitigate the loss of agricultural within the
City of Brentwood.
Corporation Yard Relocation – The City of Brentwood Public Works Department has vacated its site at 161 Sycamore
Avenue and relocated to an interim site located next to the new Wastewater Treatment Facility. This interim site,
incorporating the existing office trailers and a new 10,000 square foot multi- use facility, will be utilized until a
permanent corporation yard facility is financed and constructed.
Capital Reinvestment:
Pavement Management of City Streets - $ 900,000 – Existing pavement is a large investment for the City.
Preventative maintenance is the best means for keeping this large investment in acceptable condition. The City’s
pavement management software selects those streets that are most cost effective to do preventative maintenance on
for the year.
ADA Improvements - $ 190,000 – The 1990 Americans with Disabilities Act requires public agencies to identify, plan
and modify barriers of access to the disabled. Annual efforts now require the identification of problems City wide,
including restrooms and facility improvements.
City Walk Sidewalk Replacement - $ 125,000 – A regular sidewalk replacement program is required to ensure public
safety and reduce liability exposure.
Traffic Calming Installations - $ 50,000 – Proper engineering judgment should alter driver behavior and
reduce/ manage vehicle speed or volume and enhance pedestrian safety. This project will improve roadway
circulations.
Progress Toward Public Safety: The City Council has put Public Safety as one of its priorities and is committed to make
Brentwood one of the safest cities in California. Safe streets and low crime rates attract growth in both residential and business
development. FY 2003/ 04 includes hiring four ( 4) sworn positions. This will bring sworn staffing levels in the Police Department
to 56. On October 11, 2002, the new police station groundbreaking was held. This new facility includes a 30,900 square foot police
station, a 4,000 sq. ft. warehouse and a 2,400 sq. ft. range. Completion of the police station is estimated to be late fall 2004.
Expanding Recreation Programs: As the population of Brentwood continues to grow, the City of Brentwood 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”.
City of Brentwood Page xvii
For seniors, 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. The City has also recently partnered with Contra Costa
County to open the CC Café, a daily senior nutrition site that is open to all seniors in Brentwood.
The City of Brentwood Youth Commission has just completed their first youth survey and is moving forward with a number of
projects to better inform and serve the needs of the youth in our community. Staff continues to add and adjust youth programs to
meet the many sport, class and special interests needs of our youth.
The City and local school districts have a long history of joint- use community projects, which include three joint- use gymnasiums,
with two more in the planning stages. Additionally, the City and Liberty Union High School have plans for a joint- use 50- meter
swimming pool to be built at the new Heritage High School, opening in July 2005.
The City of Brentwood is also committed to the expansion of family activities, which include an expansion of the free Summer
Concerts Under the Stars that is held in City Park on Friday nights, and a joint project with the Brentwood Police Activities League
to sponsor two after school enrichment programs for elementary and middle school students.
Upcoming Park Projects: The City is very proud of the number of parks in Brentwood. The City Council has listened to the
community and has responded with both more facilities and improvements to existing facilities. Current upcoming park projects
include:
Balfour Road Park Development – this 11+ acre park will start construction in late summer 2003. This park will
complete the aquatic complex site and will include picnic areas which can be reserved, bocce and volleyball courts,
and open space play areas.
Blackhawk/ Apple Hill Trail – this trail project will complete an under crossing of Apple Hill Drive, and connect
Apple Hill Park with the Deer Creek detention basin. The trail is expected to be complete in late summer of 2003.
Heron Park Development – construction of this 5 acre neighborhood park will begin in the late summer of 2003 and is
scheduled for completion in 2004.
Marsh Creek Regional Trail expansion to Concord Avenue – completing this trail is a condition of the final phase of
Summerset. The expansion will include a pedestrian bridge across the ECCID main canal and extension of the Marsh
Creek Trail from Creekside Park, along Creek Road, to Concord Avenue. Completion is expected in late 2003.
Neighborhood park/ pocket park development in five subdivisions
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Oak Meadow Community Park Development – this 10 acre community and neighborhood park will be adjacent to R.
Paul Krey Elementary School. The park, which will have a children’s play area and two lighted baseball diamonds, is
expected to be open in the spring of 2004.
Sunset Sports Park Master Expansion – the expansion will enlarge the Sunset Sports Park from 10 acres to 37+ acres.
The expanded facility will include four soccer fields, a baseball and softball complex with four fields, and three multi-use
fields. The expansion project will begin construction in the summer of 2003.
Community Development Projects:
Update Zoning Ordinances – Involves a comprehensive review and update of the complete Zoning Ordinance to
bring it into conformance with contemporary zoning standards, make it user friendly, and clear up any
inconsistencies.
Downtown, Brentwood Boulevard and Empire Triangle Specific Plan – As directed by the General Plan, the purpose
of this Specific Plan is to maintain and enhance the vitality of these areas by establishing comprehensive policies to
guide long term use, urban design, parking, development standards and economic development.
Community Facilities Projects:
Interim City Hall – The current City Hall functions are overcrowded and under productive. This expansion should
facilitate the existing Downtown City Hall for another four to five years. The majority of these improvements are
related to the base building and will be a fixed asset after the interim City Hall use. This project includes expanding
and renovating the City Hall facility at 120 Oak Street to accommodate the Engineering Department.
New City Hall – In order to provide a permanent City Hall to house all appropriate City functions in an effective and
productive environment, this project consists of designing and constructing a new City Hall in the vicinity of the
existing City Hall.
Sunset Industrial Complex – Construction of a 28.8 acre medium industrial complex to facilitate moving industrial
users from Brentwood Boulevard. This project will increase available industrial land, locate industrial users with
compatible land uses, and increase the Redevelopment Agency’s tax increment cash flow.
Fiscal Strength and Long- Term Financial Stability, based on the actions taken by the Mayor and City Council once again in FY
2002/ 03 Budget, includes a General Fund Reserve of $ 15.7 million. The following budgetary principles have guided us in
increasing our reserves and in preparation of the budget:
1. Ongoing revenues must support ongoing expenditures. Consequently, one- time revenues should not be used for ongoing
expenditures on a continual basis.
City of Brentwood Page xix
2. When capital projects are considered, all associated costs should be identified in order to properly consider future financial
impacts.
3. Each enterprise fund should reflect the true cost of operation, including direct and indirect costs of services provided by the
General Fund.
4. Activities that are supported by user fees should be fully cost recoverable.
5. Discretionary General Fund revenues should not be earmarked, thereby allowing maximum flexibility in funding decisions
on an annual basis.
Some fund balances are projected to decrease and level off within five years. The large fund balances were primarily due to the
rapid growth of the City of Brentwood, are expected taper off within five ( 5) years.
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.
The City of Brentwood has a bright future ahead because of its committed elected leadership and the talents and ingenuity of the
individuals within this organization. The key to turning this hope into reality is through a well- planned, long- term fiscal strategy,
based upon economic development that will generate, high paying long- term employment opportunities, new and stable sales tax
revenue sources and improving intergovernmental relations.
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,
John Stevenson
John Stevenson
City Manager
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MISSION STATEMENT
The City of Brentwood is dedicated to creating, maintaining and enhancing
a well- planned community that is friendly, safe and healthy for everyone.
Mission Statement Adopted January 5, 2001
CORE VALUES
As City employees, we value . . .
Brentwood’s Quality of Life
with enthusiasm and a positive attitude, we strive to provide the highest quality community service thereby
contributing to the quality of life for City residents and businesses, present and future
Brentwood’s Community Spirit
we strive to represent the public’s concerns, needs and vision in the day- to- day activities of responsible public service
Accountability
prudent management, interdepartmental cooperation and employee performance that produces cost effective results
which demonstrate our respect for the citizens whose tax dollars support this organization
Innovation
initiative and willingness to be adaptable and creative with decisions that will endure the test of time and meet the
needs of future generations
Ethics
we believe a sound basis for judging the rightness of an action is a test of its high standards and its effect on people
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Brentwood City Council’s
THREE YEAR GOALS
Not in priority order
• Provide and build public facilities
• Provide and maintain an adequate public infrastructure
• Plan and manage growth to maintain and enhance our small town character
• Enhance and promote Brentwood’s economic vitality
• Provide friendly customer service
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11
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Operating Budget Calendar
Task 2002 2003
# Activity Responsibility Aug Sep Oct Nov Dec Jan Feb Mar Apr 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/ 13
5 Mid- Year Budget Report
( Council Meeting) Finance ● 1/ 14
6 Second Quarter Report to City
Clerk Finance ♦ 1/ 15
7 Budget Packets Distributed All Departments ● 1/ 28
8 Class on Budget Preparation All Departments ● 1/ 28
9 Open On- Line Budget System All Departments ● 1/ 28
10 Capital Request to City Engineer
and Finance Director All Departments ♦ 2/ 21
11 Permit Projections due to Finance
Building,
Engineering,
Finance
♦ 2/ 21
12 Capital Projects Forms Due All Departments ♦ 2/ 24
13 Capital Improvement Program
Budget Session
All Project
Managers ● 3/ 10
14 Budget Packets Due to Finance All Departments ♦ 3/ 14
15 Personnel Budget Due to Finance Human
Resources ♦ 3/ 17
16 Capital Improvement Program
Project Details Due to Finance
All Project
Managers ♦ 3/ 21
17 CIP Quality Control Review Engineering and
Finance ♦ 3/ 24
Legend: ● Meeting Date ♦ Due Date
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Operating Budget Calendar ( Cont.)
Legend: ● Meeting Date ♦ Due Date
Task # Activity Responsibility Aug Sep 2O00c2t Nov Dec Jan Feb Mar Ap2r0 03 May Jun Jul
18 Park & Recreation Commission
Workshop on CIP Project
Finance &
Parks ● 3/ 27
19 Internal Services Charges Due Finance ♦ 3/ 31
20 Revenue Projections ( All Funds) Finance ♦ 3/ 31
21 Close On- Line Budget System All
Departments ♦ 3/ 31
22 CIP Final Review Finance /
Engineering ♦ 3/ 31
23 CIP Budget Workshop All Project
Managers ● 4/ 7
24 Department Heads Meet with Finance
Director
All
Departments ● 4/ 7
25 Notice of Negative Declaration for
Publication Engineering ♦ 4/ 14
26 Letter to County Clerk for Public
Notice of CIP Budget Engineering ♦ 4/ 14
27 Third Quarter Report to City Clerk Finance ♦ 4/ 15
28 Notice of Negative Declaration
published for 20- day comment Engineering ♦ 4/ 21
29 CIP Budget to Council for Referral to
Planning Commission Finance ● 4/ 22
30 Operations Budget Review
City Manager
and Finance
Director
♦ 4/ 24
31 CIP Budget to Planning Commission to
confirm compliance with General Plan
Finance /
Engineering ● 5/ 6
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Operating Budget Calendar ( Cont.)
Task # Activity Responsibility Aug Sep 2O00c2t Nov Dec Jan Feb Mar Apr200M3 ay Jun Jul
32 CIP Budget to Council for Adoption Finance ● 5/ 27
33 File and record CIP documents with
City Clerk Engineering ♦ 5/ 31
34 Distribute Operations Budget to Council Finance ♦ 6/ 4
35 Operations Workshop with Council All
Departments ● 6/ 10
36 Council Adoption of Budget Finance ● 6/ 10
37 Publish Adopted Operations and CIP
Budget Finance ♦ 6/ 30
38 Operations and CIP Budget on Web Site Information
Systems ♦ 6/ 30
39 Fourth Quarter Report to City Clerk Finance ♦ 7/ 15
40 Prepare Cost Allocation Plan Finance ♦ 7/ 31
Legend: ● Meeting Date ♦ Due Date
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Budget Guidelines
I. User’s Guide to the Adopted Operating Budget
Each year, the Finance Department coordinates the preparation of four key budget documents:
1. Operating Two Year Budget
2. Five- Year Capital Improvement Program
3. City- Wide Cost Allocation Plan
4. 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 Adopted Operating Budget
Budget Trends and Graphs
Revenue Detail/ Departmental Expenditures
Summaries
Personnel Information
Four- year Line Item Expenditure Detail
Line Item Justification for all Funds
Status of Prior- Year Capital Projects Adopted Five- Year Capital Improvement Program Budget
Adopted Current Year Projects
Future Projects Anticipated Funding
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Total Cost by Classification Cost Allocation Plan ( CAP)
City Staff Billing Rates
City Fees
( Available 120 Days after Budget Adoption)
Financial Statements, City Statistics,
Management Discussion and Analysis
Demographics, Management Statement
Comprehensive Annual Financial Report ( CAFR)
( Available 180 days after fiscal year end)
A. Adopted Operating Two Year Budget Detail
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. Increased emphasis has
been placed on text, 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.
B. Adopted Five- Year Capital Improvement Program
The Adopted Five- Year Capital Improvement Program ( CIP) Budget is a separate document that is annually brought to the
City Council for consideration. This document 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 on subsequent
pages of this document.
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Within the CIP document, projects have been separated into 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 throughout its life. The project
identification number allows the City Council to track and monitor project status over multi- year periods. Prior to City
Council’s consideration of the CIP, the document was provided to the Planning Commission for comments. Additionally, a
cross- reference index has been included in the appendix of the CIP document to simplify the identification of the status of
projects included in prior CIP documents.
C. City- Wide 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 Cost Allocation Plan is a widely recognized and well- used method of
distributing administrative overhead “ support” costs to the benefiting programs within the 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 Plan calculates departmental and city- wide overhead factors based on distributions of expenditures between three
categories including 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.
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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.
The City- Wide administrative overhead rate for Fiscal Year 2002/ 03 was 22.88% of direct costs. The City’s Cost Allocation
Plan ( CAP) also becomes a key document in preparing the City’s User Fee Review and labor charge rates.
D. Comprehensive Annual Financial Report
The City prepared its second award- winning Comprehensive Annual Financial Report ( CAFR). The City took a leadership
role in implementing GASB 34. This early implementation, before the 2003 deadline, enabled the City Council and residents
to become more aware of the benefits and information contained in the new financial reporting model.
Providing reliable financial information requires the establishment of accounting records adequately supported by systems of
internal control. The City’s management is responsible for establishing and maintaining an internal control structure designed
to ensure that the City’s assets are protected from loss, theft, or misuse. They must also ensure that adequate accounting data is
compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America. The internal control structure is designed to provide reasonable assurance that these 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 require estimates and
judgments by management. City administration believes the existing internal control systems are adequate to provide this
reasonable assurance that City assets are safeguarded against loss and that financial records are reliable for preparing financial
statements and maintaining accountability for assets. Furthermore, the City received the second “ Unqualified” Audit this past
year.
The City’s accounting records are maintained on the Accrual Basis, or Modified Accrual Basis, as appropriate. Budgets are
prepared and expenditures recorded at the object of expenditure level. In addition to fund- by- fund financial information, we
are now including government- wide financial statements. The government- wide financial statements include a Statement of
Net Assets that provides the total net equity of the City including infrastructure and the Statement of Net Activities that shows
the cost of providing government services. These statements have been prepared using the accrual basis of accounting versus
the modified accrual method used in the fund financial statement. A reconciliation report is provided as a key to understanding
the charges between the two reporting methods. In addition, the new reporting model includes an emphasis on the City’s major
funds as shown in the Governmental Fund Statements. These new statements combined with other information are further
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analyzed in a new narrative section called Management’s Discussion and Analysis ( MD& A). The MD& A provides “ financial
highlights” and interprets the financial reports by analyzing trends and by explaining changes, fluctuations and variances in the
financial data. In addition, the MD& A is intended to disclose any known significant events or decisions that affect the
financial condition of the City.
The Comprehensive Annual Financial Report ( CAFR) is prepared in accordance with principles generally accepted in the
United States of America as promulgated by the Governmental Accounting Standards Board ( GASB).
II. Budget Development Guidelines
The Budget Development Guidelines, when approved by the City Council, will provide the policy framework in which the
Operating Budget for Fiscal Years 2003/ 04 – 2004/ 05 will be prepared by staff.
1. The number one financial management priority for the City of Brentwood in Fiscal Years 2003/ 04 – 2004/ 05 will
continue to be to stabilize its financial and service base and build reserves.
2. The Fiscal Years 2003/ 04 – 2004/ 05 will reflect the City Council's values and principles for:
A fiscally balanced budget.
Full cost allocation and fee collection wherever possible.
Consistent conservative fiscal management practice.
3. General Fund departmental budgets for Fiscal Years 2003/ 04 – 2004/ 05 will be set at a spending level that will be
free from reliance upon non- recurring revenue sources or deficit spending.
4. The City will strive to maintain 15% of annual appropriations in the General Fund’s Undesignated Fund Balance at
June 30, 2003 and 2004.
5. Citizen participation is to be encouraged by providing an opportunity for public review and comment on the
preliminary budget with a Workshop and Public Hearing.
It is the goal to constantly improve long- range financial stability.
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III. Key Budget Assumptions
Several budget assumptions were included in the Adopted Operating Budget for Fiscal Years 2003/ 04 and 2004/ 05. These
assumptions will be carefully monitored throughout the fiscal years while evaluating budgetary performance. The key budget
assumptions for Fiscal Years 2003/ 04 and 2004/ 05 include:
A. Uncertainty of health care increases have been budgeted for a 20% increase for each year.
B. Property Tax revenues will remain stable. No factor has been included for large delinquencies or valuation adjustments
beyond those that have been experienced historically from growth.
C. Developer- related revenues were conservatively forecast based on current year activity levels and the conservative
estimate from the Capital Improvement Program adopted budget.
D. CPI – annual increase of 3%
IV. Key Financial Issues Ahead
Emergency Preparedness Fund: Fiscal year 2003/ 04 represents the third year the City will have the Emergency
Preparedness fund totaling $ 5,000,000. Having this fund underscores the City Councils continued commitment to be
prepared for a critical incident or catastrophic event in the future.
Proposition # 218: When Proposition 218 was passed by the electorate on November 5, 1996, it effected a change to the
California State Constitution by making changes to local government finance law. This measure impacts the generation
and use of many fundamental revenues including fees, charges, assessments and taxes. The 2003/ 04 and 2004/ 05 budgets
fully comply with the provisions of Proposition 218.
Community Facilities District ( CFD): The Community Facilities District is a preferred financing mechanism because it
offers greater flexibility regarding police facilities and services; fire suppression services; emergency medical services;
public safety services; open space services; flood control and storm drainage services; joint use school facilities; and the
purchasing of open space facilities that benefit the general public. On May 13, 2003, the City Council approved a
Resolution declaring the intent to establish the City of Brentwood Community Facilities District No. 3 to levy a special tax
therein to finance certain public facilities and space. This will be the City’s second CFD. CFDs are significant revenue
sources as they are not considered discretionary funds and are therefore exempt from possible state takeaways.
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Long- Term Debt: Managing the City’s debt ( approximately $ 39.2 million in Governmental Activities and $ 47.1 million
in Business Type Activities as of fiscal year end 2001/ 02) will remain a high priority. On September 27, 2001, the City
refinanced a series of tax allocation and capital improvement program bonds. The City continues to look for opportunities
to take advantage of lower interest rates and appropriate financing structures.
V. State and Local Legislative Highlights
The following is a list of significant State and Local legislation:
2000s Initiatives
Business License Measure D - The City amended its fifty- four year old Business License Tax and Regulations, as set forth
in Ordinance No. 707. The City proposed that its business license fee and regulations be comparable to other cities,
provide for a fair and equitable basis and rate, require all business to pay a business license fee, provide a consistent
general fund revenue for such vital services as police services, and establish updated regulations and fees so it will not be
difficult or costly to administer and for the business community to understand. The change to the business license tax was
voted on and passed in Measure D on November 5, 2002.
Measure J authorized the issuance of a $ 6,000,000 general obligation bond to construct a new police station. The new station
will provide the expected twenty- year space needs of the Police Department, approximately 30,000 square feet. Measure J
passed by the voters in 2001.
1990s Initiatives
Measure M is a City- wide Park District Assessment used to fund park and recreational opportunities for the youth and families
of Brentwood. A fee per parcel will be levied each year to be used to maintain the park lands of the City. Measure M passed
by the voters in 1998.
Proposition 218 can be considered the fourth component of Proposition 13 in that it extended the two- thirds majority vote
requirement for any new user fees or new taxes to be levied at the local level. Assessments, fees and charges must be
submitted to property owners for either approval or rejection, after notice and public hearing. It also has the effect of reducing
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the bond ratings of all California cities, including the City of Brentwood, meaning that future bond financings could potentially
cost more. Proposition 218 passed by the voters in 1996.
Proposition 172 enacted a half- cent sales tax increase. Monies derived from this tax must be utilized solely for public safety
services. Revenue is distributed to cities and counties for purposes such as police, sheriffs, fire, district attorneys and
corrections. Proposition 172 passed by the voters in 1990.
Proposition 111 enacted a statewide traffic congestion relief program and changed the procedures for calculating the Gann
Limit by updating the spending limit on state and local government to better reflect the needs of a growing California
population. It provided new revenues to be used to reduce traffic congestion by building state highways, local streets and
roads, and public mass transit facilities. Proposition 111 passed by the voters in June of 1990.
1970s Initiatives
Proposition 13 placed a substantial limitation on the ability of local governments to collect sufficient property taxes
commensurate with the historical role this revenue source has played in funding both municipal operations and new public
facilities. Proposition 13 specified that an assessed value may increase at the rate of the Consumer Price Index, not to exceed 2
percent per year based on the 1979 value, unless the property is improved or sold to establish new market value. Proposition
13 passed by the voters in 1979.
Proposition 4, otherwise known as the “ Gann Limit”, stipulated that the City must compute an annual appropriations limit
which places a ceiling on the total amount of tax revenues the City can appropriate annually. The limit is adjusted each year
using the following criteria: 1) the percentage change in California Per Capita Income or the change in the City’s Assessed
Valuation due to new nonresidential construction, whichever is greater and 2) the percentage change in the City- wide
population, whichever is greater. Proposition 4 passed by the voters in 1979.
1940s
January 21, 1948 the City of Brentwood was incorporated as a general law city under the laws of the State of California.
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VI. Revenue Descriptions
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 the following: Property Taxes, Sales Taxes,
Motor Vehicle- In- Lieu Taxes, Building Permits and Building Plan Check Fees. Together these revenues account for
$ 12,003,111, or approximately 50% of the total revenue projected in fiscal year 2002/ 03. Listed below are the assumptions we
used for estimating the major revenue sources for the fiscal year 2002/ 03.
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 during fiscal years 1992/ 93 through 1994/ 95 to balance its budget, the City has permanently lost a total of $ 5,509,247
through fiscal year 2001/ 02 due to the State shifting property tax revenues from the Cities to the Education Revenue
Augmentation Fund ( ERAF) to assist schools. This State take away represents 35.5% of the City’s secured property tax
revenue. In fiscal year 2002/ 03 the City’s assessed valuation rose by 29.9%, which was 22% greater than the increase
experienced county- wide at 8%. The revenue estimate of $ 3,664,727 for fiscal year 2003/ 04 is 20% above the 2002/ 03
budgeted amount.
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 in fiscal year 2003/ 04 of $ 3,060,000, not including the public safety portion, is $ 660,000 above the
revised 2002/ 03 estimate of $ 2,400,000. This increase is forecasted because of an anticipated rise in local economic activity
and new businesses locating in Brentwood.
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xxxvi
Motor Vehicle 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; the State then
distributes this revenue to cities and counties on a per capita basis. Motor Vehicle- in- Lieu taxes are expected to decrease by
12% the next fiscal year less than the 2002/ 03 current estimate of $ 1,700,000.
Building Permit
Building Permits have been issued for approximately 400 millions dollars worth of building construction fiscal year to date.
Permits fees cover the cost of inspection, plan retention, records keeping, materials investigation, special inspection
management and overhead. The $ 3,550,000 of building permit revenue for FY 2003/ 04 was projected to reflect 1,000 new
single family dwellings as well as commercial development that is expected to occur.
Building Plan Check
Building Plan Check has reviewed approximately 400 million dollars worth of building construction fiscal year to date. 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 $ 1,900,000 for
FY 2003/ 04.
Percentage of Total General Fund Revenues
Major Recurring Revenues Sources Projected FY 2002/ 03 Adopted Budget FY 2003/ 04
Building Permits 13% 13%
Property Tax 13% 13%
Sales and Use Tax 10% 11%
Building Plan Check Fee 7% 7%
Motor Vehicle- In- Lieu 7% 5%
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xxxvii
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 Parks, 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.
VII. 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:
Projection FY 2002/ 03 Budget FY 03/ 04 Budget FY 04/ 05
General $ 29,812,362 $ 26,910,078 $ 29,844,737
Capital Improvement 18,822,663 42,348,333 16,773,288
Enterprise 23,946,896 47,928,176 50,595,436
Special Revenue 38,308,680 54,382,665 28,695,116
Assessment Districts 2,916,776 4,712,155 4,060,478
Internal Service 2,465,718 3,711,150 4,319,513
Debt Service 12,257,327 13,244,577 12,973,091
Redevelopment Agency 10,218,693 7,433,090 7,523,285
Total $ 138,749,115 $ 200,670,224 $ 154,784,944
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xxxviii
VIII. 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 2003/ 04 has been calculated to be $ 28,229,032. 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.
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xxxix
Article XIII ( B) Appropriations Limit for the City of Brentwood
For Fiscal Year 2003/ 04
Appropriations Limit for Fiscal Year 2002/ 03 $ 24,739,231
Population in January 2003 33,021
Population in January 2002 29,608
Percentage Increase in Population - City 11.53
Percentage Increase in Contra Costa County 1.43
California Per Capital Personal Income 2.31
Factor to be applied to Prior Year 1.141063
( Population Factor x Per Capita Factor)
Appropriations Limit for Fiscal Years 2003/ 04 $ 28,229,032
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xl
History of Population Growth*
* Figures for 2004 and 2005 are estimates only
1970 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
0
5000
10000
15000
20000
25000
30000
35000
40000
Date
P
o
p
u
l
a
t
i
o
n
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xli
Ten Year Personnel History Per Thousand Residents
7.35
7.98 8.06
7.32
6.58 6.70 6.78
7.52
6.88
7.39
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
1993/ 94 1994/ 95 1995/ 96 1996/ 97 1997/ 98 1998/ 99 1999/ 00 2000/ 01 2001/ 02 2002/ 03
Date
Positions Per Thousand Residents
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xlii
Significant Accounting Policies
The financial statements for the City of Brentwood ( City) are prepared in conformity with Generally Accepted Accounting
Principles ( GAAP) as applied to government units. The Governmental Accounting Standards Board ( GASB) is the accepted
standard- setting body for establishing 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 January 19, 1948 under the laws of the State of California and enjoys all the rights
and privileges applicable to a General Law City. The City operates under a Council- Manager form of government, and
currently provides a wide variety of services to its citizens, including: police, public services, community development,
engineering, and general administrative services. 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.
Fund Accounting
The City uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is
designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City
functions or activities.
A fund is an accounting entity with a self- balancing set of accounts established to record the financial position and results of
operations of a specific governmental activity. An account group is a financial reporting device designed to provide
accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net
expendable available financial resources. The City maintains the following fund types and account groups:
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xliii
Governmental Fund Types
General Fund: The General Fund is the general operating fund of the City and accounts for all unrestricted financial
resources except those required to be accounted for in another fund.
Special Revenue Funds: Special Revenue Funds account for the proceeds of specific revenue sources ( other than
special assessments, expendable trusts or capital projects) that are restricted by law or administrative action to
expenditures for specified purposes.
Debt Service Fund: Debt Service Funds account for the accumulation of resources for, and the payment of, interest
and principal on general long- term debt and related costs.
Capital Projects Fund: Capital Projects Funds account for financial resources segregated for the acquisition of major
capital projects or facilities ( other than those financed by proprietary fund types).
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 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xliv
Account Groups
General Fixed Assets Account Group: This account group is used to account for and control all City general fixed
assets, other than those in the proprietary funds, of long- term character such as land, buildings and structures, and major
equipment.
General Long- Term Debt Account Group: This account group is used to account for the City’s outstanding long-term
liabilities that are expected to be paid from future revenues of the governmental funds.
Basis of Accounting
Governmental fund types and fiduciary fund types use a modified accrual basis of accounting. Revenues are recognized when
available and measurable. 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 when the related fund liability is incurred. Principal and interest on
general long- term debt and special assessment debt are recorded as expenditures when paid.
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 funds types using a modified
accrual basis and the Proprietary fund types are budgeted on a full accrual basis.
The Comprehensive Annual Financial Report ( CAFR) shows the status of the City’s finances on the basis of “ generally
accepted accounting principles” ( GAAP). This conforms to the way the City prepares its budget.
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xlv
Budgetary Process
The City uses the following procedures in establishing the budgetary data reflected in the financial statements: After March 1,
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 June, 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. The City Council adopts the budget by June 30 through passage of an adopting resolution. This appropriated
budget covers substantially all City expenditures, all appropriated amounts shown are as originally adopted or as amended by
the City Council, and unexpended prior year appropriations lapsed at the year end.
The City Manager is authorized to transfer budgeted amounts between departments, within the same fund. Transfers of
appropriations between funds may be made only by authority of the City Council. Formal budgetary integration is employed
as a management control device during the fiscal year for all governmental funds. The City Council may, by majority vote,
amend or supplement the budget at any time after its adoption.
Long- Term Debt
The City of Brentwood’s total long- term debt obligations are segregated below. These schedules contain audited numbers
from the June 30, 2002 Comprehensive Annual Financial Report. Audited 2003 numbers are not yet available.
The legal debt limit as of June 30, 2002, based on the total assessed value of all real and personal property of $ 2,197,532,997
and the debt limit percentage of 3.75%, per Government Code 25 and 43605, was $ 82,407,487. The amount of debt applicable
to the debt limit is $ 5,999,976, the 2002 General Obligation Bonds, payable from an unlimited ad valorem tax on real property.
The debt margin available as of June 30, 2002 was $ 76,407,511.
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 fund and general obligation debt), the most recent rating reviews from S& P and Moody’s list overall
direct debt at $ 548 per capita and 0.7% 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 15% general
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xlvi
fund balance target, but consistently exceeds that target. In 2002, the general fund has a balance of $ 8.9 million, or 63% of
expenditures. Of that balance, $ 7.4 million was unreserved.
A substantial amount of the city’s direct general fund lease debt is self- supporting. Tax increment revenues pay debt service on
the 1992 Certificates of Participation ( COPs). The 1992 COPs will be fully paid off on June 2004, with the last payment being
made from the debt service reserve fund. 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.
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 City of Brentwood does not currently have a formalized debt policy. In August 2003, the City Council will receive a
request to amend the Budget and Fiscal Policies, which will include a section on debt management. 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 non rated
assessments bonds or complex senior subordinate structures, and 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 “ plain vanilla” in nature.
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xlvii
A. Bonds
Certificates of Participation
On October 1, 1992, the City issued $ 2,400,000 in Certificates of Participation ( ABAG XXVI) to finance utility construction
projects, total annual debt service payment, including interest at 4.5 percent to 6.4 percent ($ 137,070 o $ 328,520). The rating
was upgraded to BBB+ in 1992, by Standard & Poor’s. Payments are supported by tax increment and the debt service reserve
fund. The payment schedule is as follows:
Year Ending June 30, Principal Interest Total
2003 $ 290,000 $ 28,655 $ 318,655
2004 305,000 9,760 317,760
Total $ 595,000 $ 38,415 $ 633,415
General Obligation Bonds
On February 22, 2002, the City issued $ 5,999,976 in General Obligation Bonds, Series 2002 to finance the construction,
acquisition, and improvement of a new police station located in the City of Brentwood. Total annual debt service payments,
including interest at 3.625 percent to 5.68 percent, ranging from $ 261,656 to $ 925,000. The bonds are rated AAA, with an
underlying A2 by Moody’s. There is no additional bond authorization.
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xlviii
Year Ending
June 30,
Principal Interest Total
2003 $ - $ 208,666 $ 208,666
2004 105,000 160,856 265,856
2005 105,000 156,656 261,656
2006 120,000 152,456 272,456
2007 140,000 148,256 288,256
2008- 2012 1,035,000 631,618 1,666,618
2013- 2017 1,820,000 306,139 2,126,139
2018- 2022 1,007,807 1,702,193 2,710,000
2023- 2027 941,076 2,513,924 3,455,000
2028- 2031 726,093 2,718,907 3,445,000
Total $ 5,999,976 $ 8,699,671 $ 14,699,647
CIP 2001 Revenue Bonds
On September 27, 2001, the Brentwood Infrastructure Financing Authority issued $ 32,080,000 in Brentwood Capital
Improvement Revenue Bonds, Series 2001. The bonds include $ 21,415,000 of tax allocation bonds, and $ 10,665,000 of
general fund lease supported debt. The purpose was to refund the 1996 CIP Bonds under a Facilities Lease; to refund a series
of tax allocation bonds issued by the Redevelopment Agency of the City of Brentwood; to finance Redevelopment projects;
and to finance the Brentwood Education & Technology Center ( BETC). The economic gain from refinancing the CIP Bonds
was $ 514,989. The economic gain from refinancing the tax allocation bonds was $ 365,602. Total annual debt service
payments, including interest at 3.0 percent to 5.35 percent, is $ 2,105,294 dropping to $ 1,685,000 in 2027. The bonds carry
and insured AAA rating.
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page xlix
Future Payments for the combined obligations is as follows:
Year Ending June 30, Principal Interest Total
2003 $ 445,000 $ 1,492,900 $ 1,937,900
2004 610,000 1,477,075 2,087,075
2005 635,000 1,457,606 2,092,606
2006 650,000 1,435,913 2,085,913
2007 675,000 1,412,725 2,087,725
2008- 2012 3,770,000 6,653,016 10,423,016
2013- 2017 4,625,000 5,770,019 10,395,019
2018- 2022 5,850,000 4,500,059 10,350,059
2023- 2027 7,520,000 2,801,750 10,321,750
2028- 2031 7,300,000 948,000 8,248,000
Total $ 32,080,000 $ 27,949,063 $ 60,029,063
Water Revenue Bonds
On October 25, 1994, the City issued $ 6,570,000 in Water Revenue Bonds with interest rates ranging from 4.5 percent to 7.4
percent are due August 1, 2013. The balance at June 30, 2002 is $ 1,030,000.
Future payments for the Water Revenue Bonds are as follows:
Year Ending June 30, Principal Interest Total
2003 $ 65,000 $ 74,242 $ 139,242
2004 70,000 69,956 139,956
2005 75,000 65,268 140,268
2006 80,000 60,168 140,168
2007 85,000 54,644 139,644
2008- 2012 525,000 172,632 697,632
2013 130,000 10,318 140,318
Total $ 1,030,000 $ 507,228 $ 1,537,228
Water/ Wastewater Revenue Bonds
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page l
On December 11, 1996, the City issued $ 12,195,000 in Water/ Wastewater Revenue Bonds with interest rates ranging from 4.0
percent to 5.5 percent due July 1, 2026. The balance at June 30, 2002 is $ 11,300,000. Future payments for these bonds are as
follows:
Year Ending June 30, Principal Interest Total
2003 $ 245,000 $ 614,431 $ 859,431
2004 260,000 603,406 863,406
2005 270,000 591,446 861,446
2006 285,000 578,621 863,621
2007 295,000 564,656 859,656
2008- 2012 1,735,000 2,578,895 4,313,895
2013- 2017 2,255,000 2,059,350 4,314,350
2018- 2022 2,945,000 1,360,340 4,305,340
2023- 2026 3,010,000 435,095 3,445,095
Total $ 11,300,000 $ 9,386,240 $ 20,686,240
B. Capital Leases
The combined Capital leases have future payments as follows:
Year Ending June 30, Payments
2003 $ 87,100
2004 37,243
2005 37,243
2006 37,243
Subtotal 198,829
Less amount representing interest ( 20,725)
Total $ 178,104
C. Compensated Absences
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page li
The long- term compensated absences balance at June 30, 2002 is:
Governmental $ 361,423
Business- Type $ 138,970
D. Leases
Solid Waste Capital Lease
The Solid Waste Funds Capital Lease has future payments as follows:
Year Ending June 30, Payments
2003 $ 55,865
2004 55,865
2005 55,865
2006 55,865
Subtotal 223,460
Less amount representing interest ( 27,105)
Total $ 196,355
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page lii
E. Notes Payable
Solid Waste Note Payable
The note payable to Koch Financial Corporation relates to the construction of the Solid Waste Transfer Station. Payments of
$ 100,012 are to be made semi- annually with interest at 6.3 percent. The estimated payment schedule is as follows:
Year Ending June 30, Principal Interest Total
2003 $ 148,997 $ 51,027 $ 200,024
2004 158,531 41,493 200,024
2005 168,676 31,348 200,024
2006 179,470 20,554 200,024
2007 190,955 9,068 200,023
Total $ 846,629 $ 153,490 $ 1,000,119
Solid Waste Note Payable – BDS Settlement
The note payable to BDS is for the remainder of a settlement agreement. The agreement called for one half of the judgment to
be payable during the 1995/ 96 fiscal year with the remainder to be financed over a ten year period. The remaining amount has
a variable interest rate adjusted annually to coincide with the interest rate equal to that of a one year United States Treasury bill.
The interest rate is estimated at approximately six ( 6) percent for presentation purposes. The estimated payment schedule is as
follows:
Year Ending June 30, Principal Interest Total
2003 $ 57,300 $ 13,752 $ 71,052
2004 57,300 10,314 67,614
2005 57,300 6,876 64,176
2006 57,300 3,438 60,738
Total $ 229,200 $ 34,380 $ 263,580
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page liii
F. State Water Resources Loan
The City entered into a loan contract with the State of California ( State Water Resources Control Board) in December of
2000, for the purpose of financing the System Improvement Project. During FY 2001/ 02, the construction loan increased
$ 21,010,789 as a result of the completion of several projects. The loan amount totals $ 33,439,743 with an interest rate of zero
percent per annum. Principal payments are due annually beginning in 2004.
Year Ending June 30, Principal Only
2003 $ -
2004 2,279,044
2005 2,279,044
2006 2,279,044
2007 2,279,044
2008- 2012 11,395,220
2013- 2017 11,395,220
2018- 2022 1,533,127
TOTAL $ 33,439,743
Budget for Fiscal Years 2003/ 04 – 2004/ 05
City of Brentwood
City of Brentwood Page liv
2003/ 04 Operations
Appropriations
$ 179,992,557
Fiscal Year
2003/ 04 City
Capital
Improvement
Program
$ 67,873,754
Fiscal 2003/ 04- 2007/ 08
City Capit
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| Transcript | City of Brentwood 2003/ 04 - 2004/ 05 Final Operating Budget Prepared by: Finance Department Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page i List of Principal Officials City Officials Brian Swisher........................................................................................................................ .. Mayor Annette Beckstrand ........................................................................................................ Vice- Mayor Ana Gutierrez ......................................................................................................... Council Member Bill Hill..................................................................................................................... Council Member Pete Petrovich ........................................................................................................ Council Member Administrative Staff John Stevenson............................................................................................................. City Manager Dennis Beougher .......................................................................................................... City Attorney Craig Bronzan............................................................................... Director of Parks & Recreation Mike Davies .................................................................................................................... Police Chief Karen Diaz............................................................ City Clerk/ Director of Administrative Services Pamela Ehler ............................................................. Director of Finance & Information Systems Bailey Grewal............................................................................................................... City Engineer Mitch Oshinsky.................................................................... Director of Community Development Howard Sword ........................................................................ Director of Economic Development Paul Zolfarelli ........................................................................................... Director of Public Works Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page ii Budget Preface List of Principal Officials...................................................................................................................... ........................................................ i Table of Contents....................................................................................................................... .................................................................. ii Budget Message........................................................................................................................ ................................................................... x Mission Statement...................................................................................................................... .................................................................. xx City Council Goals.......................................................................................................................... ............................................................. xxi City Organizational Chart ............................................................................................................................... ............................................. xxii Community Services Location Map ............................................................................................................................... ............................. xxiii Operating Budget Calendar....................................................................................................................... ................................................... xxiv Budget Guidelines..................................................................................................................... ................................................................... xxvii Article XIII ( B) Appropriations Limit ............................................................................................................................... .......................... xxxix History of Population Growth ............................................................................................................................... ...................................... xl Ten Year Personnel History per Thousand Residents ............................................................................................................................... .. xli Significant Accounting Policies....................................................................................................................... ............................................ xlii Long- Term Debt ............................................................................................................................... ........................................................... xlv Capital Improvement Program ( CIP) Overview and Highlights................................................................................................................... liv Capital Budget Summary........................................................................................................................ ..................................................... lv Capital Improvements for Fiscal Years 2003/ 04 and 2004/ 05...................................................................................................................... lvi Major Capital Improvement Projects for Fiscal Years 2003/ 04 - 2007/ 08 ................................................................................................... lxii Capital Budget by Fund / Source......................................................................................................................... ........................................ lxiii Highlights by Category – Five Year ( 2003/ 04 – 2007/ 08) Capital Budget ................................................................................................. lxiv City of Brentwood Economic Outlook ............................................................................................................................... ......................... lxv Resolution No. 2893 ( Adopting the City’s Operating Budget for Fiscal Years 2003/ 04 – 2004/ 05)................................................................................. lxvii Resolution No. 2892 ( Establishing an Appropriations Limit) ............................................................................................................................... ...... lxviii All Funds Annual Budget Summary........................................................................................................................ ............................... 1 General Fund Ten Year Projection ............................................................................................................................... .......................................................... 9 Fund Balance ............................................................................................................................... ..................................................................... 10 Revenue Graph ............................................................................................................................... .................................................................. 12 Revenue ............................................................................................................................... ............................................................................. 13 Schedule of Interfund Transfers...................................................................................................................... .................................................. 17 Expenditure Graph.......................................................................................................................... .................................................................. 18 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page iii General Fund ( Cont.) Expenditure Summary ............................................................................................................................... ....................................................... 19 Expenditure Line Item Summary by Category ............................................................................................................................... .................. 21 Legislative.................................................................................................................... ..................................................................................... 30 City Administration Organizational Chart.......................................................................................................................... ............................................................... 33 City Manager ............................................................................................................................... ..................................................................... 37 City Clerk.......................................................................................................................... ................................................................................ 40 Human Resources ............................................................................................................................... .............................................................. 43 City Attorney Organizational Chart.......................................................................................................................... ............................................................... 46 City Attorney ............................................................................................................................... ..................................................................... 50 Economic Development Organizational Chart.......................................................................................................................... ............................................................... 53 Economic Development.................................................................................................................... ................................................................ 57 Finance and Information Systems Organizational Chart.......................................................................................................................... ............................................................... 60 Finance........................................................................................................................ ...................................................................................... 64 Purchasing..................................................................................................................... .................................................................................... 67 Non- Departmental................................................................................................................... .......................................................................... 70 Community Facilities..................................................................................................................... ................................................................... 73 Village Resource Center ............................................................................................................................... .................................................... 74 Dimes- A- Ride ............................................................................................................................... .................................................................... 75 Police Activity League ( PAL) ............................................................................................................................... ........................................... 76 Police Organizational Chart.......................................................................................................................... ............................................................... 77 Police ............................................................................................................................... ................................................................................. 81 COPS Universal Hiring Grant ............................................................................................................................... ........................................... 85 COPS More Civilian Grant.......................................................................................................................... ..................................................... 86 COPS in School ............................................................................................................................... ................................................................. 87 Parks and Recreation – Landscape Division Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page iv Organizational Chart.......................................................................................................................... ............................................................... 88 Landscape Operations..................................................................................................................... .................................................................. 92 Public Works – Street Division Organizational Chart.......................................................................................................................... ............................................................... 95 Streets & Storm Drain Operations ............................................................................................................................... ..................................... 99 Community Development Organizational Chart.......................................................................................................................... ............................................................... 103 Building ............................................................................................................................... ............................................................................. 107 Planning Division ............................................................................................................................... .............................................................. 110 Planning Commission ............................................................................................................................... ........................................................ 113 Engineering Organizational Chart.......................................................................................................................... ............................................................... 115 Development Engineering ............................................................................................................................... ................................................. 119 Construction Inspection ............................................................................................................................... ..................................................... 122 Traffic & Transportation................................................................................................................. .................................................................. 125 NPDES.......................................................................................................................... .................................................................................... 128 Capital Improvement Program Organizational Chart.......................................................................................................................... ............................................................... 131 Summary ............................................................................................................................... ............................................................................ 135 Revenue ............................................................................................................................... ............................................................................. 136 Expenditures ............................................................................................................................... ...................................................................... 138 Capital Improvement Program........................................................................................................................ .................................................. 139 Roadway Projects ............................................................................................................................... .............................................................. 142 Community Facilities..................................................................................................................... ................................................................... 145 Parks and Recreation Enterprise Organizational Chart.......................................................................................................................... ........................................................... 147 Operations Ten Year Projection..................................................................................................................... ............................................... 151 Summary ............................................................................................................................... ........................................................................ 152 Historical Revenue and Expense Analysis Graph.......................................................................................................................... ............... 153 Parks and Recreation Enterprise ( Cont.) Revenue ............................................................................................................................... ......................................................................... 154 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page v Expenditure Summary ............................................................................................................................... ................................................... 158 Recreation Administration ............................................................................................................................... ............................................. 161 City Pool ............................................................................................................................... ........................................................................ 164 Parks and Recreation Commission ............................................................................................................................... ................................ 167 Youth Commission ............................................................................................................................... ........................................................ 169 Planning....................................................................................................................... ................................................................................. 171 Arts Commission ............................................................................................................................... ........................................................... 175 Community Center......................................................................................................................... ............................................................... 178 Sports......................................................................................................................... ................................................................................... 181 Programs ............................................................................................................................... ........................................................................ 183 CIP Projects ............................................................................................................................... ................................................................... 185 Replacement.................................................................................................................... .............................................................................. 187 Solid Waste Enterprise Organizational Chart.......................................................................................................................... ............................................................... 189 Operations and Debt Ten year Projection ............................................................................................................................... .......................... 193 Summary ............................................................................................................................... ............................................................................ 194 Historical Revenue and Expenditure Analysis Graph.......................................................................................................................... ............. 195 Revenue ............................................................................................................................... ............................................................................. 196 Expenditures ............................................................................................................................... ...................................................................... 197 Expenditure Summary ............................................................................................................................... ....................................................... 198 Operations..................................................................................................................... .................................................................................... 199 Utility Billing........................................................................................................................ ............................................................................ 203 Transfer Station........................................................................................................................ ......................................................................... 206 Capital Projects ............................................................................................................................... .................................................................. 210 Replacement.................................................................................................................... .................................................................................. 211 Water Enterprise Organizational Chart.......................................................................................................................... ............................................................... 213 Operations Ten Year Projection..................................................................................................................... ................................................... 217 Summary ............................................................................................................................... ............................................................................ 218 Historical Revenue and Expense Analysis Graph.......................................................................................................................... ................... 219 Revenue ............................................................................................................................... ............................................................................. 220 Water Enterprise ( Cont.) Expenditures ............................................................................................................................... ...................................................................... 221 Expenditure Summary ............................................................................................................................... ....................................................... 222 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page vi Operations..................................................................................................................... .................................................................................... 223 Utility Billing........................................................................................................................ ............................................................................ 227 Non- Potable Water.......................................................................................................................... .................................................................. 230 CIP Projects ............................................................................................................................... ....................................................................... 232 Replacement.................................................................................................................... .................................................................................. 235 Debt Service........................................................................................................................ .............................................................................. 236 Wastewater Enterprise Organizational Chart.......................................................................................................................... ............................................................... 237 Operations Ten Year Projection..................................................................................................................... ................................................... 241 Summary ............................................................................................................................... ............................................................................ 242 Historical Revenue and Expenditure Analysis Graph.......................................................................................................................... ............. 243 Revenue ............................................................................................................................... ............................................................................. 244 Expenditures ............................................................................................................................... ...................................................................... 245 Expenditure Summary ............................................................................................................................... ....................................................... 246 Operations..................................................................................................................... .................................................................................... 247 Utility Billing........................................................................................................................ ............................................................................ 251 CIP Projects ............................................................................................................................... ....................................................................... 254 Replacement.................................................................................................................... .................................................................................. 256 City Rental Enterprise Organizational Chart.......................................................................................................................... ............................................................... 257 Operations Ten Year Projection..................................................................................................................... ................................................... 261 Summary ............................................................................................................................... ............................................................................ 262 Historical Revenue and Expense Analysis Graph.......................................................................................................................... ................... 263 Revenue & Expenditures Summary........................................................................................................................ .......................................... 264 CAM Main Rentals........................................................................................................................ ................................................................... 265 College Rental......................................................................................................................... .......................................................................... 267 Incubator Rental......................................................................................................................... ....................................................................... 269 Development Services Fund Revenue ............................................................................................................................... ............................................................................ 273 Expenditure Summary ............................................................................................................................... ....................................................... 275 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page vii Special Revenue Funds Reserves ............................................................................................................................... ............................................................................. 277 Revenue ............................................................................................................................... ............................................................................. 279 Gas Tax............................................................................................................................ ................................................................................. 284 Economic Development Fund........................................................................................................................... ................................................ 285 Asset Forfeiture Fund ............................................................................................................................... ........................................................ 286 Abandoned Vehicle Abatement Fund ............................................................................................................................... ................................ 287 Measure C.............................................................................................................................. ........................................................................... 288 Youth Diversion Program........................................................................................................................ ......................................................... 289 Police Grants......................................................................................................................... ............................................................................ 292 Other Grants......................................................................................................................... ............................................................................. 293 Water Facility ............................................................................................................................... .................................................................... 294 Roadway Improvements ............................................................................................................................... .................................................... 295 Parks & Trails ............................................................................................................................... .................................................................... 296 Storm Drain.......................................................................................................................... ............................................................................. 297 Wastewater Facility ............................................................................................................................... ........................................................... 298 Community Facilities Fund........................................................................................................................... .................................................... 299 Open Space ............................................................................................................................... ....................................................................... 300 Facility Fee Administration ............................................................................................................................... ............................................... 301 Agriculture Conservation................................................................................................................... ............................................................... 302 98- 1 City Wide Assessment District....................................................................................................................... .......................................... 304 Community Facilities District # 2.............................................................................................................................. ........................................ 308 Community Facilities District # 3.............................................................................................................................. ........................................ 309 94- 1 Blackhawk LLD Assessment District....................................................................................................................... ................................ 310 95- 5 California Spirit LLD Assessment District....................................................................................................................... ........................ 311 95- 6 Gerry Ranch LLD Assessment District ............................................................................................................................... ..................... 312 95- 2 Hawthorn LLD Assessment District....................................................................................................................... .................................. 313 95- 7 Greystone LLD Assessment District ............................................................................................................................... ......................... 314 95- 8 Garin LLD Assessment District....................................................................................................................... ......................................... 315 97- 1 Hancock LLD Assessment District ............................................................................................................................... ........................... 316 98- 5 Arroyo Seco LLD Assessment District ............................................................................................................................... ..................... 317 Special Revenue Funds ( Cont.) 98- 3 Solana LLD Assessment District....................................................................................................................... ....................................... 318 98- 4 Birchwood Estates LLD Assessment District....................................................................................................................... .................... 319 99- 3 Spa L.............................................................................................................................. ........................................................................... 320 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page viii 99- 4 California Grove.......................................................................................................................... ............................................................. 321 99- 5 Deer Creek.......................................................................................................................... ...................................................................... 322 99- 6 Trailside...................................................................................................................... .............................................................................. 323 99- 7 Termo ............................................................................................................................... ........................................................................ 324 99- 8 Gerry Ryder ............................................................................................................................... ............................................................... 325 99- 9 Richmond America........................................................................................................................ ........................................................... 326 00- 2 Lyon Woodfield...................................................................................................................... .................................................................. 327 00- 3 CA Orchard ............................................................................................................................... ............................................................... 328 00- 4 Brentwood Park ............................................................................................................................... ......................................................... 329 01- 1 Laird Property....................................................................................................................... .................................................................... 330 02- 2 Oakstreet ( Schulyer- Lyon) ............................................................................................................................... ....................................... 331 02- 3 Apricot Way ( Pringle) ............................................................................................................................... ............................................... 332 02- 4 Braddock & Logan ............................................................................................................................... .................................................... 333 02- 5 Sand Creek & Brentwood Blvd. ............................................................................................................................... ............................... 334 02- 6 Balfour & John Muir ............................................................................................................................... ................................................. 335 02- 7 San Jose & Sand Creek.......................................................................................................................... ................................................... 336 02- 8 Lone Tree Arco........................................................................................................................... .............................................................. 337 02- 9 Balfour Plaza ............................................................................................................................... ............................................................. 338 Internal Services Funds Reserves ............................................................................................................................... ............................................................................. 339 Revenue ............................................................................................................................... ............................................................................. 340 Emergency Preparedness ............................................................................................................................... ................................................... 345 Information Services....................................................................................................................... .................................................................. 346 Vehicle/ Equipment Replacement.................................................................................................................... .................................................. 349 Information Systems Replacement ............................................................................................................................... .................................... 351 Building Replacement.................................................................................................................... ................................................................... 353 Tuition Program........................................................................................................................ ........................................................................ 356 Fleet Maintenance.................................................................................................................... ......................................................................... 357 LLD Assessment Replacement ............................................................................................................................... .......................................... 360 Debt Service Funds Summary of Fund Balances ............................................................................................................................... ............................................... 361 Summary of Revenues ............................................................................................................................... ....................................................... 362 Summary of Expenditures................................................................................................................... .............................................................. 365 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood TABLE OF CONTENTS City of Brentwood Page ix Redevelopment Agency List of Officers....................................................................................................................... ........................................................................... 369 Ten Year Projection ............................................................................................................................... .......................................................... 373 Summary ............................................................................................................................... ............................................................................ 374 Revenue ............................................................................................................................... ............................................................................. 375 Expenditures ............................................................................................................................... ...................................................................... 377 Administration & Projects ............................................................................................................................... ................................................. 378 Low/ Moderate Housing ............................................................................................................................... ..................................................... 382 Debt Service........................................................................................................................ ................................................................................ 385 North Brentwood RDA Administration ............................................................................................................................... .............................. 387 North Brentwood RDA Debt Service ............................................................................................................................... .................................. 388 Resolution No. RA- 69 ( Adopting RDA Budget) ............................................................................................................................... ....................... 389 Appendix Adopted Equipment List ............................................................................................................................... .................................................... A- 1 Vehicle Replacement Fund List........................................................................................................................... ............................................. A- 3 Compensation Plan ............................................................................................................................... ............................................................ A- 5 New Personnel Requests....................................................................................................................... ............................................................ A- 8 Summary of Positions ............................................................................................................................... ........................................................ A- 9 Basic Data ............................................................................................................................... .......................................................................... A- 11 Guide to Funds by Fund Numbers ............................................................................................................................... ..................................... B- 1 Glossary....................................................................................................................... ..................................................................................... C- 1 Acronyms....................................................................................................................... ................................................................................... D- 1 Index.......................................................................................................................... ....................................................................................... E- 1 City of Brentwood Page x June 2003 The Honorable Mayor and City Council Members City of Brentwood Brentwood, California 94513 Dear Mayor Swisher and Members of the City Council: I am pleased to submit the Operating Budget for the City of Brentwood and Brentwood Redevelopment Agency for Fiscal Years 2003/ 04 and 2004/ 05. The City’s Operating Budget of $ 180 million and the Redevelopment Agency’s Budget of $ 7.4 million adhere to the City Council’s Goals and Objectives. These budgets reflect an organization whose top priorities continue to be: Provide and build public facilities Provide and maintain an adequate public infrastructure Plan and manage growth to maintain and enhance our small town character Enhance and promote Brentwood’s economic vitality Provide friendly customer service Finance has taken each department step- by- step through the entire budget process. Hand in hand with Brentwood’s growth, are many policy challenges facing the City. Brentwood possesses growing service demands and a limited degree of revenue and expenditure flexibility. The practical constraints on expenditure reductions is reflected in a General Fund expenditure rate per capita that is below average for California cities of similar size. The City’s strong fund balance levels, additional reserves and prudent fiscal management allow for us to be prepared for future growth. This budget includes anticipated state budget cuts to the Vehicle License Fee ( VLF) “ backfill”. The legislations establishing the backfill approach was enacted in 1998 as part of a larger package that also reduced the VLF tax paid by consumers. A voter- passed constitutional amendment in 1986 earmarks the VLF as a source of local government revenue. The backfill was intended to cover the loss of revenue to local governments, in effect shifting the burden of the consumer tax cut to the state general fund. However, many of the expenditure reallocations in this budget are being recommended in preparation for any additional State budget cuts. City of Brentwood Page xi This budget includes, but is not limited to, the following: Increase of four ( 4) Police officers to comply with the 1.5 sworn positions per 1,000 residents – FY 2003/ 04 $ 179,268 for Police Activities League Program Includes new staff for Arts Commission FY 2004/ 05 Contribution of $ 432,000 for Fire Department/ EMT Service each year Continued support to the Library - $ 97,611 Funding for new accounting software This Operations Budget underscores the City Council’s commitment to continue to make cost containment a high priority. These Budgets adhere 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. The Budget for the City’s other funds include the ongoing support and services for the activities in the Enterprise, Debt Service, and Special Revenue Funds. The Operating Budget has also been prepared in conjunction with the City’s Five- Year Capital Improvement Program for Fiscal Years 2003/ 04 – 2007/ 08. The Operating Budget is a flexible- spending plan and is the legal authority for departments to commit financial resources to provide services within the City of Brentwood. The Operating Budget will continue to be reviewed quarterly or sooner if necessary, to allow the City Council to respond to changes in the economy or development community in a timely manner. REVENUES AND ECONOMIC CONDITIONS Fiscal Year 2002/ 03 General Fund revenues are projected to reach $ 23,441,564, an increase of $ 4,067,921 or 21% from FY 2001/ 02, and reflect the continued growth of the local economy. In the past year the City has experienced significant interest in relocation and expansion of existing businesses. The City has continued to work with the Chamber of Commerce and Economic Development in its effort to encourage either the expansion or relocation of industries that generate local sales tax and employment advantages. City of Brentwood Page xii Economic Highlights Business Licenses: Business License revenues are expected to increase from $ 106,500 to $ 300,000 for FY 2003/ 04. This projected increase is due to the new business license tax that was passed by the voters in November 2002, new businesses that are expected to come to Brentwood, and continued code enforcement. Franchise Fees: Franchise Fee revenue is anticipated to increase from $ 414,116 to $ 496,939 due to population growth and commercial development. Property Tax: The 2003/ 04 revenue estimate for property taxes is based on an assumed 2% increase in assessed valuation of existing property. Future additional assessed valuation increases will be partially offset by the impact of pending assessed valuation appeals by property owners. The FY 2003/ 04 estimate of $ 3,664,727 represents approximately 13% of the total General Fund revenues. In fiscal year 2002/ 03 the City’s assessed valuation rose by 29.9%, which was 22% greater than the increase experienced county- wide at 8%. Vehicle License Fees: This approximately $ 1.9 million revenue source is not safe from State takeaway due to continuing budget uncertainty on the State level. We are concerned that the State may act further to lower the amount of the fee that local governments receive. The State makes up the balance of the vehicle license fee from its general fund, thereby trading one of our rather constant revenue sources for one subject to the impulse of the State legislature. This revenue has been reduced in anticipation of State budget cuts. Investment Interest: Investment interest is anticipated to increase from $ 1,200,000 in FY 2002/ 03 to $ 1,800,000 in FY 2003/ 04. Our projection assumes that the national and state economies will continue to expand at subdued rates until mid- 2003, when improvements in business spending and export sales start to boost overall economic growth. Although interest rates are at a 40 year low, Brentwood continues to show an increase in consumer confidence and exponential growth with new home construction, the addition of several large chain outlets on the frontier and residents’ quest for a sophisticated way of life. Brentwood is also on the cutting edge of technology, which allows a small City like Brentwood to continue to reach for their peak production frontier. Permits and Charges for Services: An overall increase from $ 8,364,326 to $ 9,242,540 is projected in FY 2003/ 04. This increase is due to the continued growth in building inspection and plan check fees. City of Brentwood Page xiii KEY ECONOMIC ISSUES PRIORITIES AND ISSUES FOR THE CURRENT YEAR: Global Economy: In FY 2002/ 03 we were concerned about how the war in Iraq would affect us and our economic and financial problems. While our local economy experienced healthy economic growth and low inflation, the high- tech industry in the Bay Area faltered from the slowdown in the demand for computers and electronic goods. There are signs that the downturn is ending and a recovery could begin soon. Economic Development: FY 2002/ 03 saw positive economic news for the City of Brentwood with growth in population, residential construction, sales and median prices and rapidly accelerating commercial and industrial development. Until recently, Brentwood was a small, rural, agricultural community. The need for housing in the Bay Area in the early 1990’ s prompted Brentwood’s growth at a rate of 10% to 15% per year. The City’s population has increased steadily over the last fiscal year as predicted and the development of single- family homes, commercial sites and infrastructure reflects the increase in this expanding population. The City issued 1,160 building permits for single- family homes during the previous fiscal year. To keep up with the growth demands, infrastructure development also was at a high level with several large projects at various stages of design, construction or completion for the year. Business License Tax: The City of Brentwood has developed additional revenue from business license tax by citizens passing Measure D, which increased our tax by moving to gross receipts. This revenue is significant because it is not considered discretionary and therefore is not subject to state take away. Rate Studies: Rate studies have been completed for the Water, Sewer and Park and Recreation Enterprises. The rate study for Solid Waste is currently underway and is expected to be completed by September 2003. This is to ensure collection of user fees and/ or utility rates for services provided to the public. PRIORITIES AND ISSUES FOR THE BUDGET YEAR: Advocacy on Strategic Legislative Issues: Resources will be dedicated to advocating appropriate and equitable solutions to issues that affect our community and the region, including transportation issues and the fiscal stability of the City. Resources are being City of Brentwood Page xiv allocated to allow the City Council the opportunity to take a more direct role in this advocacy work. Funds for staff and advocacy consultants have also been included in the budget. Redevelopment: The Brentwood Redevelopment Agency ( RDA) will continue its investigation of a multi- level public parking structure with ground floor retail space, and a retail/ restaurant project, both in the Downtown area. RDA staff will also begin negotiations for a reimbursement agreement for roadway improvements at the Central Business Park, a 40- acre, mixed use commercial and housing project. The implementation of several existing workforce housing projects, plus consideration of the RDA’s participation in proposed and upcoming workforce housing projects, will be part of the RDA’s housing programs and projects. Public infrastructure and improvements within the Redevelopment Project Areas, of approximately $ 3 million, will be funded by the RDA’s tax allocation bond proceeds. System and Organizational Improvements: The City will be acquiring and implementing new financial software that will allow integration with all City systems. The City’s Website has become an e- commerce site and will be working on the ability to allow users to inquire about their Utility Billing accounts or Business License information. 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 some steps being taken to make good, economic use of technology and provide quality customer service. Regional Leadership: The focus on providing leadership on issues that affect the entire region, such as transportation and economic development, will continue in FY 2003/ 04. The City Council and staff will continue to be involved in policy development through its memberships and participation in the Economic Development Alliance for Business, Contra Costa Economic Partnership and the state sponsored Inter- Regional Partnership. Fiscal Model: The City of Brentwood has contracted the services of Gruen & Gruen + Associates ( GG+ A) to assist in the preparation of a 10- year Fiscal Model. GG+ A will monitor this process and develop a strategic plan for the next ten years that will enable the city to continue its long run of fiscal health. The initial tasks have been to provide assistance to representatives within all the departments to improve accuracy within the individual departments’ projections. GG+ A’s economic and market analysts assisted in the financial process by providing economic and market forecasting, as required, to refine and update the exogenous determinants of costs and revenues. In all likelihood, these forecasts relate alternative economic and marketing input scenarios so as to enable the core team and the Council to consider the short run and the long run implications of alternatively likely economic and growth futures. Strategic Opportunities for the Future: We recognize the importance of taking a long- range view for both the City and the organization. The City Council and the executive management team will work together to discuss community issues and City of Brentwood Page xv development priorities for change and improvement. Among other strategic planning efforts are the partnerships with the Police Activities League ( PAL), the addition of a John Muir Medical Center in Brentwood and joint partnerships with Heritage High School on ball field, pool and gymnasium use. To that end, the City is preparing a ten- year fiscal forecast. City Salaries: Effective July 1, 2003, the City Council changed the pay policy from 10% above the mean to the 85th percentile of designated survey cities. The survey cities include: Antioch, Benicia, Livermore, Manteca, Pittsburg, Pleasant Hill, Pleasanton, Tracy and Vacaville. Also on the list are: Contra Costa County as a major area employer, Contra Costa Water District for water only, Dublin San Ramon Services District for wastewater only, BFI and Waste Management for solid waste only. The July 1, 2003 pay plan adjustment includes updated salary survey information from the designated survey list provided above. Levels of Service: In light of budget pressures stemming from the general economy and looming state takeaways, the City of Brentwood will strive to maintain or surpass its current levels of service. This goal will be aided by the increase in salaries in that it will allow the City to hire and keep quality staff. Vehicle License Fee: The most recent Governor’s Budget Revision ( May 2003) contemplates fully funding Vehicle License Fees revenues for local government. Under this proposal, the “ trigger” for VLF will be pulled some time in July, insuring 100% full funding of VLF. What this means to the City of Brentwood is approximately $ 1.9 million in revenue. We have adjusted the 2003/ 04 and 2004/ 05 budgets with the anticipated reduction of the backfill from the State. MILESTONES AND ACCOMPLISHMENTS For FY 2002/ 03 the City Development activity surpassed the City’s budgeted projections. Under residential development, the City’s budget was built with the projection of issuing 850 new single family dwelling permits. It is estimated that with the close of FY 2002/ 03, the City will have issued approximately 1,400 permits. Listed below are just a few of the City Council’s accomplishments: Completed Wastewater Treatment Plant – The completion of this plant will ensure that treatment facilities are available for the expected growth of the City. Business License Tax – Measure D was passed by citizens on November 5, 2002. A flat tax was replaced with a tax based on gross receipts. Formed Community Facilities District for Fire and Open Space – ensures a long- term revenue stream. These funds are non- discretionary and not subject to state takeaway. City of Brentwood Page xvi Formed Agricultural Trust – The Brentwood Agricultural Land Trust was formed on October 24, 2002 to help implement the City’s Agricultural Enterprise Preservation Program and mitigate the loss of agricultural within the City of Brentwood. Corporation Yard Relocation – The City of Brentwood Public Works Department has vacated its site at 161 Sycamore Avenue and relocated to an interim site located next to the new Wastewater Treatment Facility. This interim site, incorporating the existing office trailers and a new 10,000 square foot multi- use facility, will be utilized until a permanent corporation yard facility is financed and constructed. Capital Reinvestment: Pavement Management of City Streets - $ 900,000 – Existing pavement is a large investment for the City. Preventative maintenance is the best means for keeping this large investment in acceptable condition. The City’s pavement management software selects those streets that are most cost effective to do preventative maintenance on for the year. ADA Improvements - $ 190,000 – The 1990 Americans with Disabilities Act requires public agencies to identify, plan and modify barriers of access to the disabled. Annual efforts now require the identification of problems City wide, including restrooms and facility improvements. City Walk Sidewalk Replacement - $ 125,000 – A regular sidewalk replacement program is required to ensure public safety and reduce liability exposure. Traffic Calming Installations - $ 50,000 – Proper engineering judgment should alter driver behavior and reduce/ manage vehicle speed or volume and enhance pedestrian safety. This project will improve roadway circulations. Progress Toward Public Safety: The City Council has put Public Safety as one of its priorities and is committed to make Brentwood one of the safest cities in California. Safe streets and low crime rates attract growth in both residential and business development. FY 2003/ 04 includes hiring four ( 4) sworn positions. This will bring sworn staffing levels in the Police Department to 56. On October 11, 2002, the new police station groundbreaking was held. This new facility includes a 30,900 square foot police station, a 4,000 sq. ft. warehouse and a 2,400 sq. ft. range. Completion of the police station is estimated to be late fall 2004. Expanding Recreation Programs: As the population of Brentwood continues to grow, the City of Brentwood 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”. City of Brentwood Page xvii For seniors, 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. The City has also recently partnered with Contra Costa County to open the CC Café, a daily senior nutrition site that is open to all seniors in Brentwood. The City of Brentwood Youth Commission has just completed their first youth survey and is moving forward with a number of projects to better inform and serve the needs of the youth in our community. Staff continues to add and adjust youth programs to meet the many sport, class and special interests needs of our youth. The City and local school districts have a long history of joint- use community projects, which include three joint- use gymnasiums, with two more in the planning stages. Additionally, the City and Liberty Union High School have plans for a joint- use 50- meter swimming pool to be built at the new Heritage High School, opening in July 2005. The City of Brentwood is also committed to the expansion of family activities, which include an expansion of the free Summer Concerts Under the Stars that is held in City Park on Friday nights, and a joint project with the Brentwood Police Activities League to sponsor two after school enrichment programs for elementary and middle school students. Upcoming Park Projects: The City is very proud of the number of parks in Brentwood. The City Council has listened to the community and has responded with both more facilities and improvements to existing facilities. Current upcoming park projects include: Balfour Road Park Development – this 11+ acre park will start construction in late summer 2003. This park will complete the aquatic complex site and will include picnic areas which can be reserved, bocce and volleyball courts, and open space play areas. Blackhawk/ Apple Hill Trail – this trail project will complete an under crossing of Apple Hill Drive, and connect Apple Hill Park with the Deer Creek detention basin. The trail is expected to be complete in late summer of 2003. Heron Park Development – construction of this 5 acre neighborhood park will begin in the late summer of 2003 and is scheduled for completion in 2004. Marsh Creek Regional Trail expansion to Concord Avenue – completing this trail is a condition of the final phase of Summerset. The expansion will include a pedestrian bridge across the ECCID main canal and extension of the Marsh Creek Trail from Creekside Park, along Creek Road, to Concord Avenue. Completion is expected in late 2003. Neighborhood park/ pocket park development in five subdivisions City of Brentwood Page xviii Oak Meadow Community Park Development – this 10 acre community and neighborhood park will be adjacent to R. Paul Krey Elementary School. The park, which will have a children’s play area and two lighted baseball diamonds, is expected to be open in the spring of 2004. Sunset Sports Park Master Expansion – the expansion will enlarge the Sunset Sports Park from 10 acres to 37+ acres. The expanded facility will include four soccer fields, a baseball and softball complex with four fields, and three multi-use fields. The expansion project will begin construction in the summer of 2003. Community Development Projects: Update Zoning Ordinances – Involves a comprehensive review and update of the complete Zoning Ordinance to bring it into conformance with contemporary zoning standards, make it user friendly, and clear up any inconsistencies. Downtown, Brentwood Boulevard and Empire Triangle Specific Plan – As directed by the General Plan, the purpose of this Specific Plan is to maintain and enhance the vitality of these areas by establishing comprehensive policies to guide long term use, urban design, parking, development standards and economic development. Community Facilities Projects: Interim City Hall – The current City Hall functions are overcrowded and under productive. This expansion should facilitate the existing Downtown City Hall for another four to five years. The majority of these improvements are related to the base building and will be a fixed asset after the interim City Hall use. This project includes expanding and renovating the City Hall facility at 120 Oak Street to accommodate the Engineering Department. New City Hall – In order to provide a permanent City Hall to house all appropriate City functions in an effective and productive environment, this project consists of designing and constructing a new City Hall in the vicinity of the existing City Hall. Sunset Industrial Complex – Construction of a 28.8 acre medium industrial complex to facilitate moving industrial users from Brentwood Boulevard. This project will increase available industrial land, locate industrial users with compatible land uses, and increase the Redevelopment Agency’s tax increment cash flow. Fiscal Strength and Long- Term Financial Stability, based on the actions taken by the Mayor and City Council once again in FY 2002/ 03 Budget, includes a General Fund Reserve of $ 15.7 million. The following budgetary principles have guided us in increasing our reserves and in preparation of the budget: 1. Ongoing revenues must support ongoing expenditures. Consequently, one- time revenues should not be used for ongoing expenditures on a continual basis. City of Brentwood Page xix 2. When capital projects are considered, all associated costs should be identified in order to properly consider future financial impacts. 3. Each enterprise fund should reflect the true cost of operation, including direct and indirect costs of services provided by the General Fund. 4. Activities that are supported by user fees should be fully cost recoverable. 5. Discretionary General Fund revenues should not be earmarked, thereby allowing maximum flexibility in funding decisions on an annual basis. Some fund balances are projected to decrease and level off within five years. The large fund balances were primarily due to the rapid growth of the City of Brentwood, are expected taper off within five ( 5) years. 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. The City of Brentwood has a bright future ahead because of its committed elected leadership and the talents and ingenuity of the individuals within this organization. The key to turning this hope into reality is through a well- planned, long- term fiscal strategy, based upon economic development that will generate, high paying long- term employment opportunities, new and stable sales tax revenue sources and improving intergovernmental relations. 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, John Stevenson John Stevenson City Manager Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xx MISSION STATEMENT The City of Brentwood is dedicated to creating, maintaining and enhancing a well- planned community that is friendly, safe and healthy for everyone. Mission Statement Adopted January 5, 2001 CORE VALUES As City employees, we value . . . Brentwood’s Quality of Life with enthusiasm and a positive attitude, we strive to provide the highest quality community service thereby contributing to the quality of life for City residents and businesses, present and future Brentwood’s Community Spirit we strive to represent the public’s concerns, needs and vision in the day- to- day activities of responsible public service Accountability prudent management, interdepartmental cooperation and employee performance that produces cost effective results which demonstrate our respect for the citizens whose tax dollars support this organization Innovation initiative and willingness to be adaptable and creative with decisions that will endure the test of time and meet the needs of future generations Ethics we believe a sound basis for judging the rightness of an action is a test of its high standards and its effect on people Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxi Brentwood City Council’s THREE YEAR GOALS Not in priority order • Provide and build public facilities • Provide and maintain an adequate public infrastructure • Plan and manage growth to maintain and enhance our small town character • Enhance and promote Brentwood’s economic vitality • Provide friendly customer service Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxiii 11 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxiv Operating Budget Calendar Task 2002 2003 # Activity Responsibility Aug Sep Oct Nov Dec Jan Feb Mar Apr 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/ 13 5 Mid- Year Budget Report ( Council Meeting) Finance ● 1/ 14 6 Second Quarter Report to City Clerk Finance ♦ 1/ 15 7 Budget Packets Distributed All Departments ● 1/ 28 8 Class on Budget Preparation All Departments ● 1/ 28 9 Open On- Line Budget System All Departments ● 1/ 28 10 Capital Request to City Engineer and Finance Director All Departments ♦ 2/ 21 11 Permit Projections due to Finance Building, Engineering, Finance ♦ 2/ 21 12 Capital Projects Forms Due All Departments ♦ 2/ 24 13 Capital Improvement Program Budget Session All Project Managers ● 3/ 10 14 Budget Packets Due to Finance All Departments ♦ 3/ 14 15 Personnel Budget Due to Finance Human Resources ♦ 3/ 17 16 Capital Improvement Program Project Details Due to Finance All Project Managers ♦ 3/ 21 17 CIP Quality Control Review Engineering and Finance ♦ 3/ 24 Legend: ● Meeting Date ♦ Due Date Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxv Operating Budget Calendar ( Cont.) Legend: ● Meeting Date ♦ Due Date Task # Activity Responsibility Aug Sep 2O00c2t Nov Dec Jan Feb Mar Ap2r0 03 May Jun Jul 18 Park & Recreation Commission Workshop on CIP Project Finance & Parks ● 3/ 27 19 Internal Services Charges Due Finance ♦ 3/ 31 20 Revenue Projections ( All Funds) Finance ♦ 3/ 31 21 Close On- Line Budget System All Departments ♦ 3/ 31 22 CIP Final Review Finance / Engineering ♦ 3/ 31 23 CIP Budget Workshop All Project Managers ● 4/ 7 24 Department Heads Meet with Finance Director All Departments ● 4/ 7 25 Notice of Negative Declaration for Publication Engineering ♦ 4/ 14 26 Letter to County Clerk for Public Notice of CIP Budget Engineering ♦ 4/ 14 27 Third Quarter Report to City Clerk Finance ♦ 4/ 15 28 Notice of Negative Declaration published for 20- day comment Engineering ♦ 4/ 21 29 CIP Budget to Council for Referral to Planning Commission Finance ● 4/ 22 30 Operations Budget Review City Manager and Finance Director ♦ 4/ 24 31 CIP Budget to Planning Commission to confirm compliance with General Plan Finance / Engineering ● 5/ 6 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxvi Operating Budget Calendar ( Cont.) Task # Activity Responsibility Aug Sep 2O00c2t Nov Dec Jan Feb Mar Apr200M3 ay Jun Jul 32 CIP Budget to Council for Adoption Finance ● 5/ 27 33 File and record CIP documents with City Clerk Engineering ♦ 5/ 31 34 Distribute Operations Budget to Council Finance ♦ 6/ 4 35 Operations Workshop with Council All Departments ● 6/ 10 36 Council Adoption of Budget Finance ● 6/ 10 37 Publish Adopted Operations and CIP Budget Finance ♦ 6/ 30 38 Operations and CIP Budget on Web Site Information Systems ♦ 6/ 30 39 Fourth Quarter Report to City Clerk Finance ♦ 7/ 15 40 Prepare Cost Allocation Plan Finance ♦ 7/ 31 Legend: ● Meeting Date ♦ Due Date Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxvii Budget Guidelines I. User’s Guide to the Adopted Operating Budget Each year, the Finance Department coordinates the preparation of four key budget documents: 1. Operating Two Year Budget 2. Five- Year Capital Improvement Program 3. City- Wide Cost Allocation Plan 4. 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 Adopted Operating Budget Budget Trends and Graphs Revenue Detail/ Departmental Expenditures Summaries Personnel Information Four- year Line Item Expenditure Detail Line Item Justification for all Funds Status of Prior- Year Capital Projects Adopted Five- Year Capital Improvement Program Budget Adopted Current Year Projects Future Projects Anticipated Funding Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxviii Total Cost by Classification Cost Allocation Plan ( CAP) City Staff Billing Rates City Fees ( Available 120 Days after Budget Adoption) Financial Statements, City Statistics, Management Discussion and Analysis Demographics, Management Statement Comprehensive Annual Financial Report ( CAFR) ( Available 180 days after fiscal year end) A. Adopted Operating Two Year Budget Detail 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. Increased emphasis has been placed on text, 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. B. Adopted Five- Year Capital Improvement Program The Adopted Five- Year Capital Improvement Program ( CIP) Budget is a separate document that is annually brought to the City Council for consideration. This document 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 on subsequent pages of this document. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxix Within the CIP document, projects have been separated into 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 throughout its life. The project identification number allows the City Council to track and monitor project status over multi- year periods. Prior to City Council’s consideration of the CIP, the document was provided to the Planning Commission for comments. Additionally, a cross- reference index has been included in the appendix of the CIP document to simplify the identification of the status of projects included in prior CIP documents. C. City- Wide 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 Cost Allocation Plan is a widely recognized and well- used method of distributing administrative overhead “ support” costs to the benefiting programs within the 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 Plan calculates departmental and city- wide overhead factors based on distributions of expenditures between three categories including 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. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxx 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. The City- Wide administrative overhead rate for Fiscal Year 2002/ 03 was 22.88% of direct costs. The City’s Cost Allocation Plan ( CAP) also becomes a key document in preparing the City’s User Fee Review and labor charge rates. D. Comprehensive Annual Financial Report The City prepared its second award- winning Comprehensive Annual Financial Report ( CAFR). The City took a leadership role in implementing GASB 34. This early implementation, before the 2003 deadline, enabled the City Council and residents to become more aware of the benefits and information contained in the new financial reporting model. Providing reliable financial information requires the establishment of accounting records adequately supported by systems of internal control. The City’s management is responsible for establishing and maintaining an internal control structure designed to ensure that the City’s assets are protected from loss, theft, or misuse. They must also ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. The internal control structure is designed to provide reasonable assurance that these 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 require estimates and judgments by management. City administration believes the existing internal control systems are adequate to provide this reasonable assurance that City assets are safeguarded against loss and that financial records are reliable for preparing financial statements and maintaining accountability for assets. Furthermore, the City received the second “ Unqualified” Audit this past year. The City’s accounting records are maintained on the Accrual Basis, or Modified Accrual Basis, as appropriate. Budgets are prepared and expenditures recorded at the object of expenditure level. In addition to fund- by- fund financial information, we are now including government- wide financial statements. The government- wide financial statements include a Statement of Net Assets that provides the total net equity of the City including infrastructure and the Statement of Net Activities that shows the cost of providing government services. These statements have been prepared using the accrual basis of accounting versus the modified accrual method used in the fund financial statement. A reconciliation report is provided as a key to understanding the charges between the two reporting methods. In addition, the new reporting model includes an emphasis on the City’s major funds as shown in the Governmental Fund Statements. These new statements combined with other information are further Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxi analyzed in a new narrative section called Management’s Discussion and Analysis ( MD& A). The MD& A provides “ financial highlights” and interprets the financial reports by analyzing trends and by explaining changes, fluctuations and variances in the financial data. In addition, the MD& A is intended to disclose any known significant events or decisions that affect the financial condition of the City. The Comprehensive Annual Financial Report ( CAFR) is prepared in accordance with principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board ( GASB). II. Budget Development Guidelines The Budget Development Guidelines, when approved by the City Council, will provide the policy framework in which the Operating Budget for Fiscal Years 2003/ 04 – 2004/ 05 will be prepared by staff. 1. The number one financial management priority for the City of Brentwood in Fiscal Years 2003/ 04 – 2004/ 05 will continue to be to stabilize its financial and service base and build reserves. 2. The Fiscal Years 2003/ 04 – 2004/ 05 will reflect the City Council's values and principles for: A fiscally balanced budget. Full cost allocation and fee collection wherever possible. Consistent conservative fiscal management practice. 3. General Fund departmental budgets for Fiscal Years 2003/ 04 – 2004/ 05 will be set at a spending level that will be free from reliance upon non- recurring revenue sources or deficit spending. 4. The City will strive to maintain 15% of annual appropriations in the General Fund’s Undesignated Fund Balance at June 30, 2003 and 2004. 5. Citizen participation is to be encouraged by providing an opportunity for public review and comment on the preliminary budget with a Workshop and Public Hearing. It is the goal to constantly improve long- range financial stability. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxii III. Key Budget Assumptions Several budget assumptions were included in the Adopted Operating Budget for Fiscal Years 2003/ 04 and 2004/ 05. These assumptions will be carefully monitored throughout the fiscal years while evaluating budgetary performance. The key budget assumptions for Fiscal Years 2003/ 04 and 2004/ 05 include: A. Uncertainty of health care increases have been budgeted for a 20% increase for each year. B. Property Tax revenues will remain stable. No factor has been included for large delinquencies or valuation adjustments beyond those that have been experienced historically from growth. C. Developer- related revenues were conservatively forecast based on current year activity levels and the conservative estimate from the Capital Improvement Program adopted budget. D. CPI – annual increase of 3% IV. Key Financial Issues Ahead Emergency Preparedness Fund: Fiscal year 2003/ 04 represents the third year the City will have the Emergency Preparedness fund totaling $ 5,000,000. Having this fund underscores the City Councils continued commitment to be prepared for a critical incident or catastrophic event in the future. Proposition # 218: When Proposition 218 was passed by the electorate on November 5, 1996, it effected a change to the California State Constitution by making changes to local government finance law. This measure impacts the generation and use of many fundamental revenues including fees, charges, assessments and taxes. The 2003/ 04 and 2004/ 05 budgets fully comply with the provisions of Proposition 218. Community Facilities District ( CFD): The Community Facilities District is a preferred financing mechanism because it offers greater flexibility regarding police facilities and services; fire suppression services; emergency medical services; public safety services; open space services; flood control and storm drainage services; joint use school facilities; and the purchasing of open space facilities that benefit the general public. On May 13, 2003, the City Council approved a Resolution declaring the intent to establish the City of Brentwood Community Facilities District No. 3 to levy a special tax therein to finance certain public facilities and space. This will be the City’s second CFD. CFDs are significant revenue sources as they are not considered discretionary funds and are therefore exempt from possible state takeaways. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxiii Long- Term Debt: Managing the City’s debt ( approximately $ 39.2 million in Governmental Activities and $ 47.1 million in Business Type Activities as of fiscal year end 2001/ 02) will remain a high priority. On September 27, 2001, the City refinanced a series of tax allocation and capital improvement program bonds. The City continues to look for opportunities to take advantage of lower interest rates and appropriate financing structures. V. State and Local Legislative Highlights The following is a list of significant State and Local legislation: 2000s Initiatives Business License Measure D - The City amended its fifty- four year old Business License Tax and Regulations, as set forth in Ordinance No. 707. The City proposed that its business license fee and regulations be comparable to other cities, provide for a fair and equitable basis and rate, require all business to pay a business license fee, provide a consistent general fund revenue for such vital services as police services, and establish updated regulations and fees so it will not be difficult or costly to administer and for the business community to understand. The change to the business license tax was voted on and passed in Measure D on November 5, 2002. Measure J authorized the issuance of a $ 6,000,000 general obligation bond to construct a new police station. The new station will provide the expected twenty- year space needs of the Police Department, approximately 30,000 square feet. Measure J passed by the voters in 2001. 1990s Initiatives Measure M is a City- wide Park District Assessment used to fund park and recreational opportunities for the youth and families of Brentwood. A fee per parcel will be levied each year to be used to maintain the park lands of the City. Measure M passed by the voters in 1998. Proposition 218 can be considered the fourth component of Proposition 13 in that it extended the two- thirds majority vote requirement for any new user fees or new taxes to be levied at the local level. Assessments, fees and charges must be submitted to property owners for either approval or rejection, after notice and public hearing. It also has the effect of reducing Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxiv the bond ratings of all California cities, including the City of Brentwood, meaning that future bond financings could potentially cost more. Proposition 218 passed by the voters in 1996. Proposition 172 enacted a half- cent sales tax increase. Monies derived from this tax must be utilized solely for public safety services. Revenue is distributed to cities and counties for purposes such as police, sheriffs, fire, district attorneys and corrections. Proposition 172 passed by the voters in 1990. Proposition 111 enacted a statewide traffic congestion relief program and changed the procedures for calculating the Gann Limit by updating the spending limit on state and local government to better reflect the needs of a growing California population. It provided new revenues to be used to reduce traffic congestion by building state highways, local streets and roads, and public mass transit facilities. Proposition 111 passed by the voters in June of 1990. 1970s Initiatives Proposition 13 placed a substantial limitation on the ability of local governments to collect sufficient property taxes commensurate with the historical role this revenue source has played in funding both municipal operations and new public facilities. Proposition 13 specified that an assessed value may increase at the rate of the Consumer Price Index, not to exceed 2 percent per year based on the 1979 value, unless the property is improved or sold to establish new market value. Proposition 13 passed by the voters in 1979. Proposition 4, otherwise known as the “ Gann Limit”, stipulated that the City must compute an annual appropriations limit which places a ceiling on the total amount of tax revenues the City can appropriate annually. The limit is adjusted each year using the following criteria: 1) the percentage change in California Per Capita Income or the change in the City’s Assessed Valuation due to new nonresidential construction, whichever is greater and 2) the percentage change in the City- wide population, whichever is greater. Proposition 4 passed by the voters in 1979. 1940s January 21, 1948 the City of Brentwood was incorporated as a general law city under the laws of the State of California. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxv VI. Revenue Descriptions 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 the following: Property Taxes, Sales Taxes, Motor Vehicle- In- Lieu Taxes, Building Permits and Building Plan Check Fees. Together these revenues account for $ 12,003,111, or approximately 50% of the total revenue projected in fiscal year 2002/ 03. Listed below are the assumptions we used for estimating the major revenue sources for the fiscal year 2002/ 03. 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 during fiscal years 1992/ 93 through 1994/ 95 to balance its budget, the City has permanently lost a total of $ 5,509,247 through fiscal year 2001/ 02 due to the State shifting property tax revenues from the Cities to the Education Revenue Augmentation Fund ( ERAF) to assist schools. This State take away represents 35.5% of the City’s secured property tax revenue. In fiscal year 2002/ 03 the City’s assessed valuation rose by 29.9%, which was 22% greater than the increase experienced county- wide at 8%. The revenue estimate of $ 3,664,727 for fiscal year 2003/ 04 is 20% above the 2002/ 03 budgeted amount. 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 in fiscal year 2003/ 04 of $ 3,060,000, not including the public safety portion, is $ 660,000 above the revised 2002/ 03 estimate of $ 2,400,000. This increase is forecasted because of an anticipated rise in local economic activity and new businesses locating in Brentwood. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxvi Motor Vehicle 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; the State then distributes this revenue to cities and counties on a per capita basis. Motor Vehicle- in- Lieu taxes are expected to decrease by 12% the next fiscal year less than the 2002/ 03 current estimate of $ 1,700,000. Building Permit Building Permits have been issued for approximately 400 millions dollars worth of building construction fiscal year to date. Permits fees cover the cost of inspection, plan retention, records keeping, materials investigation, special inspection management and overhead. The $ 3,550,000 of building permit revenue for FY 2003/ 04 was projected to reflect 1,000 new single family dwellings as well as commercial development that is expected to occur. Building Plan Check Building Plan Check has reviewed approximately 400 million dollars worth of building construction fiscal year to date. 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 $ 1,900,000 for FY 2003/ 04. Percentage of Total General Fund Revenues Major Recurring Revenues Sources Projected FY 2002/ 03 Adopted Budget FY 2003/ 04 Building Permits 13% 13% Property Tax 13% 13% Sales and Use Tax 10% 11% Building Plan Check Fee 7% 7% Motor Vehicle- In- Lieu 7% 5% Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxvii 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 Parks, 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. VII. 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: Projection FY 2002/ 03 Budget FY 03/ 04 Budget FY 04/ 05 General $ 29,812,362 $ 26,910,078 $ 29,844,737 Capital Improvement 18,822,663 42,348,333 16,773,288 Enterprise 23,946,896 47,928,176 50,595,436 Special Revenue 38,308,680 54,382,665 28,695,116 Assessment Districts 2,916,776 4,712,155 4,060,478 Internal Service 2,465,718 3,711,150 4,319,513 Debt Service 12,257,327 13,244,577 12,973,091 Redevelopment Agency 10,218,693 7,433,090 7,523,285 Total $ 138,749,115 $ 200,670,224 $ 154,784,944 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxviii VIII. 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 2003/ 04 has been calculated to be $ 28,229,032. 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. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xxxix Article XIII ( B) Appropriations Limit for the City of Brentwood For Fiscal Year 2003/ 04 Appropriations Limit for Fiscal Year 2002/ 03 $ 24,739,231 Population in January 2003 33,021 Population in January 2002 29,608 Percentage Increase in Population - City 11.53 Percentage Increase in Contra Costa County 1.43 California Per Capital Personal Income 2.31 Factor to be applied to Prior Year 1.141063 ( Population Factor x Per Capita Factor) Appropriations Limit for Fiscal Years 2003/ 04 $ 28,229,032 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xl History of Population Growth* * Figures for 2004 and 2005 are estimates only 1970 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 0 5000 10000 15000 20000 25000 30000 35000 40000 Date P o p u l a t i o n Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xli Ten Year Personnel History Per Thousand Residents 7.35 7.98 8.06 7.32 6.58 6.70 6.78 7.52 6.88 7.39 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 1993/ 94 1994/ 95 1995/ 96 1996/ 97 1997/ 98 1998/ 99 1999/ 00 2000/ 01 2001/ 02 2002/ 03 Date Positions Per Thousand Residents Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xlii Significant Accounting Policies The financial statements for the City of Brentwood ( City) are prepared in conformity with Generally Accepted Accounting Principles ( GAAP) as applied to government units. The Governmental Accounting Standards Board ( GASB) is the accepted standard- setting body for establishing 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 January 19, 1948 under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City operates under a Council- Manager form of government, and currently provides a wide variety of services to its citizens, including: police, public services, community development, engineering, and general administrative services. 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. Fund Accounting The City uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City functions or activities. A fund is an accounting entity with a self- balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The City maintains the following fund types and account groups: Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xliii Governmental Fund Types General Fund: The General Fund is the general operating fund of the City and accounts for all unrestricted financial resources except those required to be accounted for in another fund. Special Revenue Funds: Special Revenue Funds account for the proceeds of specific revenue sources ( other than special assessments, expendable trusts or capital projects) that are restricted by law or administrative action to expenditures for specified purposes. Debt Service Fund: Debt Service Funds account for the accumulation of resources for, and the payment of, interest and principal on general long- term debt and related costs. Capital Projects Fund: Capital Projects Funds account for financial resources segregated for the acquisition of major capital projects or facilities ( other than those financed by proprietary fund types). 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 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xliv Account Groups General Fixed Assets Account Group: This account group is used to account for and control all City general fixed assets, other than those in the proprietary funds, of long- term character such as land, buildings and structures, and major equipment. General Long- Term Debt Account Group: This account group is used to account for the City’s outstanding long-term liabilities that are expected to be paid from future revenues of the governmental funds. Basis of Accounting Governmental fund types and fiduciary fund types use a modified accrual basis of accounting. Revenues are recognized when available and measurable. 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 when the related fund liability is incurred. Principal and interest on general long- term debt and special assessment debt are recorded as expenditures when paid. 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 funds types using a modified accrual basis and the Proprietary fund types are budgeted on a full accrual basis. The Comprehensive Annual Financial Report ( CAFR) shows the status of the City’s finances on the basis of “ generally accepted accounting principles” ( GAAP). This conforms to the way the City prepares its budget. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xlv Budgetary Process The City uses the following procedures in establishing the budgetary data reflected in the financial statements: After March 1, 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 June, 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. The City Council adopts the budget by June 30 through passage of an adopting resolution. This appropriated budget covers substantially all City expenditures, all appropriated amounts shown are as originally adopted or as amended by the City Council, and unexpended prior year appropriations lapsed at the year end. The City Manager is authorized to transfer budgeted amounts between departments, within the same fund. Transfers of appropriations between funds may be made only by authority of the City Council. Formal budgetary integration is employed as a management control device during the fiscal year for all governmental funds. The City Council may, by majority vote, amend or supplement the budget at any time after its adoption. Long- Term Debt The City of Brentwood’s total long- term debt obligations are segregated below. These schedules contain audited numbers from the June 30, 2002 Comprehensive Annual Financial Report. Audited 2003 numbers are not yet available. The legal debt limit as of June 30, 2002, based on the total assessed value of all real and personal property of $ 2,197,532,997 and the debt limit percentage of 3.75%, per Government Code 25 and 43605, was $ 82,407,487. The amount of debt applicable to the debt limit is $ 5,999,976, the 2002 General Obligation Bonds, payable from an unlimited ad valorem tax on real property. The debt margin available as of June 30, 2002 was $ 76,407,511. 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 fund and general obligation debt), the most recent rating reviews from S& P and Moody’s list overall direct debt at $ 548 per capita and 0.7% 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 15% general Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xlvi fund balance target, but consistently exceeds that target. In 2002, the general fund has a balance of $ 8.9 million, or 63% of expenditures. Of that balance, $ 7.4 million was unreserved. A substantial amount of the city’s direct general fund lease debt is self- supporting. Tax increment revenues pay debt service on the 1992 Certificates of Participation ( COPs). The 1992 COPs will be fully paid off on June 2004, with the last payment being made from the debt service reserve fund. 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. 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 City of Brentwood does not currently have a formalized debt policy. In August 2003, the City Council will receive a request to amend the Budget and Fiscal Policies, which will include a section on debt management. 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 non rated assessments bonds or complex senior subordinate structures, and 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 “ plain vanilla” in nature. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xlvii A. Bonds Certificates of Participation On October 1, 1992, the City issued $ 2,400,000 in Certificates of Participation ( ABAG XXVI) to finance utility construction projects, total annual debt service payment, including interest at 4.5 percent to 6.4 percent ($ 137,070 o $ 328,520). The rating was upgraded to BBB+ in 1992, by Standard & Poor’s. Payments are supported by tax increment and the debt service reserve fund. The payment schedule is as follows: Year Ending June 30, Principal Interest Total 2003 $ 290,000 $ 28,655 $ 318,655 2004 305,000 9,760 317,760 Total $ 595,000 $ 38,415 $ 633,415 General Obligation Bonds On February 22, 2002, the City issued $ 5,999,976 in General Obligation Bonds, Series 2002 to finance the construction, acquisition, and improvement of a new police station located in the City of Brentwood. Total annual debt service payments, including interest at 3.625 percent to 5.68 percent, ranging from $ 261,656 to $ 925,000. The bonds are rated AAA, with an underlying A2 by Moody’s. There is no additional bond authorization. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xlviii Year Ending June 30, Principal Interest Total 2003 $ - $ 208,666 $ 208,666 2004 105,000 160,856 265,856 2005 105,000 156,656 261,656 2006 120,000 152,456 272,456 2007 140,000 148,256 288,256 2008- 2012 1,035,000 631,618 1,666,618 2013- 2017 1,820,000 306,139 2,126,139 2018- 2022 1,007,807 1,702,193 2,710,000 2023- 2027 941,076 2,513,924 3,455,000 2028- 2031 726,093 2,718,907 3,445,000 Total $ 5,999,976 $ 8,699,671 $ 14,699,647 CIP 2001 Revenue Bonds On September 27, 2001, the Brentwood Infrastructure Financing Authority issued $ 32,080,000 in Brentwood Capital Improvement Revenue Bonds, Series 2001. The bonds include $ 21,415,000 of tax allocation bonds, and $ 10,665,000 of general fund lease supported debt. The purpose was to refund the 1996 CIP Bonds under a Facilities Lease; to refund a series of tax allocation bonds issued by the Redevelopment Agency of the City of Brentwood; to finance Redevelopment projects; and to finance the Brentwood Education & Technology Center ( BETC). The economic gain from refinancing the CIP Bonds was $ 514,989. The economic gain from refinancing the tax allocation bonds was $ 365,602. Total annual debt service payments, including interest at 3.0 percent to 5.35 percent, is $ 2,105,294 dropping to $ 1,685,000 in 2027. The bonds carry and insured AAA rating. Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page xlix Future Payments for the combined obligations is as follows: Year Ending June 30, Principal Interest Total 2003 $ 445,000 $ 1,492,900 $ 1,937,900 2004 610,000 1,477,075 2,087,075 2005 635,000 1,457,606 2,092,606 2006 650,000 1,435,913 2,085,913 2007 675,000 1,412,725 2,087,725 2008- 2012 3,770,000 6,653,016 10,423,016 2013- 2017 4,625,000 5,770,019 10,395,019 2018- 2022 5,850,000 4,500,059 10,350,059 2023- 2027 7,520,000 2,801,750 10,321,750 2028- 2031 7,300,000 948,000 8,248,000 Total $ 32,080,000 $ 27,949,063 $ 60,029,063 Water Revenue Bonds On October 25, 1994, the City issued $ 6,570,000 in Water Revenue Bonds with interest rates ranging from 4.5 percent to 7.4 percent are due August 1, 2013. The balance at June 30, 2002 is $ 1,030,000. Future payments for the Water Revenue Bonds are as follows: Year Ending June 30, Principal Interest Total 2003 $ 65,000 $ 74,242 $ 139,242 2004 70,000 69,956 139,956 2005 75,000 65,268 140,268 2006 80,000 60,168 140,168 2007 85,000 54,644 139,644 2008- 2012 525,000 172,632 697,632 2013 130,000 10,318 140,318 Total $ 1,030,000 $ 507,228 $ 1,537,228 Water/ Wastewater Revenue Bonds Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page l On December 11, 1996, the City issued $ 12,195,000 in Water/ Wastewater Revenue Bonds with interest rates ranging from 4.0 percent to 5.5 percent due July 1, 2026. The balance at June 30, 2002 is $ 11,300,000. Future payments for these bonds are as follows: Year Ending June 30, Principal Interest Total 2003 $ 245,000 $ 614,431 $ 859,431 2004 260,000 603,406 863,406 2005 270,000 591,446 861,446 2006 285,000 578,621 863,621 2007 295,000 564,656 859,656 2008- 2012 1,735,000 2,578,895 4,313,895 2013- 2017 2,255,000 2,059,350 4,314,350 2018- 2022 2,945,000 1,360,340 4,305,340 2023- 2026 3,010,000 435,095 3,445,095 Total $ 11,300,000 $ 9,386,240 $ 20,686,240 B. Capital Leases The combined Capital leases have future payments as follows: Year Ending June 30, Payments 2003 $ 87,100 2004 37,243 2005 37,243 2006 37,243 Subtotal 198,829 Less amount representing interest ( 20,725) Total $ 178,104 C. Compensated Absences Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page li The long- term compensated absences balance at June 30, 2002 is: Governmental $ 361,423 Business- Type $ 138,970 D. Leases Solid Waste Capital Lease The Solid Waste Funds Capital Lease has future payments as follows: Year Ending June 30, Payments 2003 $ 55,865 2004 55,865 2005 55,865 2006 55,865 Subtotal 223,460 Less amount representing interest ( 27,105) Total $ 196,355 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page lii E. Notes Payable Solid Waste Note Payable The note payable to Koch Financial Corporation relates to the construction of the Solid Waste Transfer Station. Payments of $ 100,012 are to be made semi- annually with interest at 6.3 percent. The estimated payment schedule is as follows: Year Ending June 30, Principal Interest Total 2003 $ 148,997 $ 51,027 $ 200,024 2004 158,531 41,493 200,024 2005 168,676 31,348 200,024 2006 179,470 20,554 200,024 2007 190,955 9,068 200,023 Total $ 846,629 $ 153,490 $ 1,000,119 Solid Waste Note Payable – BDS Settlement The note payable to BDS is for the remainder of a settlement agreement. The agreement called for one half of the judgment to be payable during the 1995/ 96 fiscal year with the remainder to be financed over a ten year period. The remaining amount has a variable interest rate adjusted annually to coincide with the interest rate equal to that of a one year United States Treasury bill. The interest rate is estimated at approximately six ( 6) percent for presentation purposes. The estimated payment schedule is as follows: Year Ending June 30, Principal Interest Total 2003 $ 57,300 $ 13,752 $ 71,052 2004 57,300 10,314 67,614 2005 57,300 6,876 64,176 2006 57,300 3,438 60,738 Total $ 229,200 $ 34,380 $ 263,580 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page liii F. State Water Resources Loan The City entered into a loan contract with the State of California ( State Water Resources Control Board) in December of 2000, for the purpose of financing the System Improvement Project. During FY 2001/ 02, the construction loan increased $ 21,010,789 as a result of the completion of several projects. The loan amount totals $ 33,439,743 with an interest rate of zero percent per annum. Principal payments are due annually beginning in 2004. Year Ending June 30, Principal Only 2003 $ - 2004 2,279,044 2005 2,279,044 2006 2,279,044 2007 2,279,044 2008- 2012 11,395,220 2013- 2017 11,395,220 2018- 2022 1,533,127 TOTAL $ 33,439,743 Budget for Fiscal Years 2003/ 04 – 2004/ 05 City of Brentwood City of Brentwood Page liv 2003/ 04 Operations Appropriations $ 179,992,557 Fiscal Year 2003/ 04 City Capital Improvement Program $ 67,873,754 Fiscal 2003/ 04- 2007/ 08 City Capit |
| PDI.Date.Issued | 2003 |
| PDI.Title | Budget. 2003-2005. |
| OCLC number | 244798608 |
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