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HomeMy WebLinkAbout16-09 CC Resolution RESOLUTION NO. 16-09 ' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AMENDING THE FISCAL YEAR 2015-16 ANNUAL OPERATING BUDGET, BUDGET AND FISCAL POLICIES, AND SALARY SCHEDULE B THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1 . The purpose of this review is to conduct an analysis of revenues and expenditures to ensure that the City maintains a prudent and healthy fiscal position. Section 2. That each year a mid-year review is conducted of City operating budgets. Section 3. That the mid-year review has been completed and the recommended adjustments are reflected in the attached schedules for the City's General Fund, Special Revenue, and Internal Services Funds. Section 4. That the Fiscal Year 2015-16 General Fund Annual Operating Budget is hereby amended in accordance with the attached Exhibit A, General Fund ' Fiscal Year 2015-16 Mid-Year Budget. Section 5. That the Fiscal Year 2015-16 Special Revenue Funds Annual Operating Budgets are hereby amended in accordance with the attached Exhibit B — Special Revenue Funds Fiscal Year 2015-16 Mid-Year Budget. Section 6. That the Fiscal Year 2015-16 Internal Services Funds Annual Operating Budgets are hereby amended in accordance with the attached Exhibit C, Internal Services Funds Fiscal Year 2015-16 Mid-Year Budget. Section 7. That the Fiscal Year 2015-16 Budget and Fiscal Policies is hereby amended in accordance with the attached Exhibit D, Budget and Fiscal Policies. Section 8. That the Fiscal Year 2015-16 Salary Schedule B is hereby amended in accordance with the attached Exhibit E, Salary Schedule B. Section 9. The City Clerk shall certify adoption of the resolution. 1 Resos 16-09 1 PASSED, APPROVED, AND ADOPTED by the City Council of the City of ' Temecula this 9th day of February, 2016. Michael S. Naggar, Mayor ATTEST: Randi Johl, rk [SEAL] Resos 16-09 2 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 16-09 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 9th day of February, 2016, by the following vote: AYES: 5 COUNCIL MEMBERS: Comerchero, Edwards, McCracken, Rahn, Naggar NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None Randi Johl, City Clerk Resos 16-09 3 1 City of Temecula Fiscal Year 2015-16 ' Mid-Year Adjustments EXHIBIT A General Fund FY2015-16 Mid-Year Budget 1 ' Fiscal Year 2015-16 Mid-Year Budget Adjustments 1-� City of Temecula - Fiscal Year 201536 Mid-Year Adjustments ' Fund:001 GENERAL FUND 2015.16 Year to Date Proposed 2015-16 2014-15 Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease( Budget (Decrease) Prior year Contractual Obligations - - 207,884 207,884 0.00% Revenues by Category Taxes and Franchises 47,342,100 48,148,124 12,719,093 3,435,751 51,583,875 714% Licenses,Permits and Service Charges 4,360,725 4,274,771 2,249,679 4,464 4,279,235 0.10% Fines and Forfeitures 810,332 860,415 310,348 (95,071) 765,344 -11.05% Use of Money and Property 82,351 133,573 12,762 (50,000) 83,573 -37.43% Intergovernmental Revenues 6,799,415 7,055,799 43,947 63,067 7,118,866 0.89% Reimbursements 2,081,053 2,315,546 670,444 29,284 2,344,830 1.26% Operating Transfers In 3,196,644 2,912,992 1,420,537 104,552 3,017,544 3.59% Miscellaneous Revenue 181,853 152,540 64,562 4,590 157,130 3.01% Total Operating Revenues 64,854,473 65,853,760 17,491,372 3,704,521 69,SS8,281 5.63% Expenditures by Department City Council 449,291 458,521 139,772 - 458,521 0.00% Community Support 88,010 88,000 51,450 - 88,000 0.00% City Manager 1,181,747 1,306,949 562,113 67,817 1,374,766 5.19% Economic Development 1,063,360 925,920 450,713 9,818 935,738 1.06% Emergency Management - 109,074 55,640 6,907 115,981 6.33% City Clerk 1,049,220 1,029,914 410,484 9,850 1,039,764 0.96% City Attorney 493,063 735,726 200,781 - 735,726 0.00% Finance 2,063,118 2,147,834 917,661 120,719 2,268,553 5.62% ' Human Resources 727,903 662,891 283,771 38,113 701,004 5.75% Planning 1,925,801 2,000,129 720,503 85,518 2,085,647 4.28% Building&Safety 2,225,189 2,444,269 742,233 68,064 2,512,333 2.78% Land Development 1,328,894 1,430,977 621,459 26,687 1,457,664 1.86% Public Works 4,896,165 5,263,211 1,810,450 11,587 5,274,798 0.22% CIP Admin 2,091,110 2,098,579 949,960 26,364 2,124,943 1.26% Parks Maintenance 3,675,165 3,834,558 1,455,828 (15,264) 3,819,294 -0.40% Police 23,492,761 25,694,620 8,093,652 131,076 25,825,696 0.S3% Fire 5,186,588 6,287,590 2,629,928 (391,930) 5,895,660 -6.23% Animal Control 469,410 471,808 312,836 - 471,808 0.00% Non Departmental: - 0.00% Property Tax Admin 76,705 79,024 - (13,097) 65,927 -16.57% Recreation Funding 5,256,456 4,601,783 2,160,921 - 4,601,783 0.00% Service Level B Funding - 390,888 - - 390,888 0.00% Library Funding - 644,205 - - 644,205 0.00% Retiree Medical Contribution 488,207 512,617 187,711 - 512,617 O.DD% PERs Replacement Benefit 60,841 62,067 18,797 9,393 71,460 15.13% Separation CAL Payout - - - 100,000 100,000 O.DO% Classification Plan Transition - - - 150,000 150,000 O.DO% Classification Plan Stipend(Non-GF) - - - 116,702 116,702 0.00% 2011 Financing Lease-2001&2008 COPS 2,137,190 2,137,366 1,067,975 - 2,137,366 0.00% Pavement Management Program 1,500,000 0.00% Total Operating Expenditures 61,926,193 65,418,521 23,844,638 558,323 65,976,844 0.85% Excess of Revenues Over(Under)Expenditures 2,928,280 435,239 (6,353,266) 3,146,198 3,581,437 722.87% Fund Description The General Fund is the main operating fund for the City of Temecula. It is used to account for all financial resources for the City that are not restricted to a special purpose and otherwise required to be accounted for in another fund. The General fund provides the resources necessary to sustain the day-to-day activities and pays for all administrative and operating expenditures. '�!1 City of Temecula l Fiscal Year 2015-16 Mid-Year Adjustments ' Fund:001 GENERAL FUND 2015-16 Year to Date Proposed 2015-16 2014-15 Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 IDecreasel Budget (Decrease) Excess of Revenues Over(Under)Expenditures 2,928,280 435,239 (6,353,266) 3,146,198 3,581,437 722.87% Operating Transfers Out/One Time Payments DIF Fire Facilities (817,400) - - - - 0.00% Theater Remediation (203,621) - - - - 0.00% Workers'Compensation - (250,000) (125,000) - (250,000) 0.00% Capital Improvement Fund (1,066,281) (1,668,326) (1,668,326) - (1,668,326) 0.00% Intern Fellowship Program Fund (12,000) (19,645) (12,552) - (19,645) 0.00% Affordable Housing Fund (23,307) - - - - 0.00% Business Incubator Fund (45,876) (187,127) (43,563) - (187,127) 0.00% Total Transfers Out/One Time Payments (2,168,485) (2,125,098) (1,849,441) - (2,125,098) 0.00% Fund Balance,Beginning of Year 25,301,101 26,060,896 26,060,896 26,060,896 0.00% Fund Balance,End of Year 26,060,896 24,371,037 17,858,188 3,146,198 27,517,235 12.91% Detail of Fund Balance Nonspendable: Inventory 3,058 3,058 3,058 - 3,058 0.00% Prepaid Costs - - - - 1,325 0.00% ' Deposits 1,325 1,325 1,325 - - O.DD% Committed To: 0.00% Contractual Obligations 207,885 0.00% Economic Uncertainty Reserve(20%) 12,385,239 13,083,704 13,083,704 111,665 13,195,369 0.85% Secondary Reserve(5%) 3,096,310 3,270,926 3,270,926 27,916 3,298,842 0.85% Assigned To: O.DD% Capital Projects 1,198,236 348,648 348,648 - 348,648 0.00% Pavement Management - 250,000 250,000 - 250,000 0.00% Theater Reconstruction - - - - - 0.00% City and Park Facilities Improvements 470,000 420,000 420,000 - 420,000 0.00% Unrealized Gains - - - - 0.0D% Unassigned: 8,698,843 6,993,376 480,527 3,006,617 9,999,993 42.99% 26,060,896 24,371,037 17,858,188 3,146,198 27,517,235 12.91% 1 City of Temecula Fiscal Year 2015-16 ' Mid-Year Adjustments EXHIBIT B Special Revenue and Debt Service Funds FY2015-16 Mid-Year Budget 1 ' Fiscal Year 2015-16 Mid-Year Budget Adjustments City of Temecula ' Fiscal Year 2Mid-Yew Mld-Ye Adjustments FUND:100 GAS TAX FUND 2015-16 Year to Date Proposed 2015-16 2014-15 Current Actual, Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source Taxes and Franchises Gas Tax 2,948.069 2,246,801 931,927 172,712 2,419,513 7.7% Use of Mastery and property Investment Interest 2,872 3,000 341 1,000 4,000 313% Total Revenues and Other Sources 1,950,941 2,249,/01 932,2" 173,712 2,423,513 7.7% Expenditures by Category Operating Transfers Out General Fund 3,018,353 2,741,992 695,498 105,299 2,947,291 18% Total Expenditures and Other Financing Uses 3,0111 2,741,992 61 198 los,299 ;847,291 18% Excess of Revenues Over(Under)Expenditures (67,412) (492,191) 246,770 69,413 (423,778) -139% Fund Balance,Beginning of Year 491,190 423,778 423,778 423,778 00% Fund Balance,End of Year 423,778 (68,413) 670,548 68,413 -100.0% Fwd Description This fund was established to account for the tax per gallon on the purchase of motor vehicle fuel imposed by the State of California.A portion is ' allocated to the City of Temecula as specified in the California Streets and Highways Code(SHC)(Sections 2013,2105,2107 and 2107.5).Gas Tax monies are restricted to the repair,maintenance and upkeep of City streets and roads,and the purchase of equipment used to maintain roads. ' I City of Temecula C_' 1 Fiscal Year 2015-1 ,G�r G( Mid-Year Adjustments FUND: 125 PUBLIC, EDUCATION &GOVERNMENT(PEG)FEES 2015-16 Year to Date Proposed 2015-16 201415 Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source Taxes and Franchises PEG Fees - - 18,665 55,995 55,995 0.0% Investment Interest - - (101 - - 0.0% Use of Money and Property Investment Interest - - - - 0.0% Total Revenues and Other Sources 18,655 55,995 ss,99S 0.0% Expenditures by Category Operations and Maintenance - 24,500 24,500 0.0% Toul Expendkures and Other Financing Uses 24,500 21,500 0.0% Excess of Revenues Over(Under)Expenditures - - 18,655 31,495 31,495 0,0% Fund Balance,Beginning of Year - - - - - 0.0% Fund Balance,End of Year - 18,655 31,495 31,495 0.0% Fund DestriPUan ' This lund was established to account for Public Education and Government(PEG)fees.Fees received from local cable operatorsfor the sole purpose of supporting the access facilities and activities within the City. ' City of Temecula Fiscal Year 2015-16 It �!7 __. Mid-Year Adjustments FUND: 135 BUSINESS INCUBATOR RESOURCE FUND Z01S-16 Yearto0ate proposed 2015-16 2014-1s Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source Use of Money and Properly Investment Interest 140 200 5 - 200 0.0% Rental Income 30,202 27,800 18,803 6,785 34,585 24.4% Operating Transient In General Fund 45,876 187,127 93,564 187,127 0.0% Total Revenues and Other Sources 76,213 216,127 112,372 6,795 221,912 3.2% Expenditures by Category personnel - 104,369 51,471 - 104,369 0.0% Operations and Maintenance 16,959 22.324 31906 - 22,324 0.0% Facilities 94,282 88,434 22,109 88,434 0.0% Total Expendltum and Other Financing Uses 111,241 235,127 77,486 215,127 0.0% Excess of Revenues Oyer(Under)Expenditures (3S,023) - 34,886 6,785 6,785 0.0% Fund Balance,Beginning of Year 41,031 6,008 6,008 6,008 0.0% Fund Balance,End of Year 61008 6,008 40,894 6,785 12,793 112.9% 1 Fund Dascription This fund was established to account for all activity at the City of Temecula Entrepreneur's Exchange Business Incubator(TVE2). The Business Incubator offers affordable,flexible and scalable space for startup businesses to network,collaborate and grow their business. City Temecula Fiscal Year 2015-1[� Mid-Year Adjustments FUND:140 COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG)FUND 2015-16 Year to Date Proposed 2015-16 201415 Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source Intergwemmental Revenues Community Development Block Grant 376,250 1,217,713 52,266 1,217,713 0.016 Total Revenues and Other Sources 376,250 1,217,713 52,266 1,217,713 0.0% Expenditures by Category Personnel 108,814 104,548 50,589 - 104,548 0.0% Operations and Maintenance 85,224 156,008 1,677 - 156,008 0.0% Operating Transfers Out-CIP 182,212 957,157 957,157 0.0% Total Expenditures and Other Financing Uses 37111 1,217,713 52,266 1,217,713 0.09% Excess of Revenues Over jUnder)Expenditures - - - - - D.O% Fund Balance,Beginning of Year 0V% Fund Balance,End of Year - - - - - 0.0% Fund Description This fund was established to account for grants received from the U.S.Department of Housing and Urban Development(HUD).The grants are used for 1 the redevelopment of a viable community by providing decent housing,a suitable living environment,and for expanding opportunities,principally for persons of low and moderate income. 1 ' City Temecula Fiscal Year 2015-16 �- Mid-Year Adjustments FUND: 145 TEMECULA ENERGY EFFICIENCY ASSET MANAGEMENT(TEEM)FUND 2015-16 Year to Date Proposed 2015-16 201415 Current Actuate Increase Revised %Increase Description Actual, Budget 12/31/2015 IDecreasel Budget (Decrease) Revenues by Source Use of Money and Property Investment Interest 905 1,000 (31) HID 1,200 20.D% Reimbursements Energy Efficiency Rebates 29,%9 29,600 19,934 29,600 0.056 Total Revenues and Other sources 30,874 30,600 19,903 200 30,800 0.7% Expenditures by Category Operations and Maintenance - - - 0.0% Total Expenditures and Other Financing Uses - 0.0% Excess of Revenues Over(Under)Expenditures 30,874 30,600 19,903 200 30,800 03% Fund Balance,Beginning of Year 165,166 1 96,040 196,040 - 1 96,040 0.0% Fund Balance,End of Year 1 96,040 226,640 215,943 200 226,840 0.1% Fund Description This fund was established to capture energy efficiency rebates and reimbursements as well as expenditure savings resulting from energy efficiency 1 projects completed at various City facilities. Revenue collected in this fund will be utilized on future energy efficiency projects. 1 City Temecula 1 � Fiscal Year 2015-16 q -i7 Mid-Year Adjustments FUND: 150 AB 2766 MOTOR VEHICLE SUBVENTION FUND 2015-16 Year to Date Proposed 2015-16 2010-15 Current Actual, Increase Revised %Increase Description Actuals Budge 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source lustergweremenbl Revenues AB2766 Motor Vehicle Subvention Revenues 131,874 134,290 32,739 (1,261) 133,033 -0.9% Use at Money and Property Investment Interest 2,480 2,700 (83) 300 3,000 11.1% Total Revenues and Other Sources 139,350 136,890 32,656 (961) 136,033 -0.7% Expenditures by Category Operations and Maintenance 30,284 37,790 5,115 37,790 0.0% Operating Transfers Out-CIP 655,693 655,693 0.0% Total Expenditures and Other Financing Uses 30,250 693,983 5,115 693,9113 0.0% Excess of Revenues Over(Under)Expenditures ID4,070 (556,489) 27,541 (961) (557,450) 0.2% Fund Balance,Beginning of Year 462,831 566,901 566,901 - 566,901 0.0% Fund Balance,End of Year 566,901 10,412 594,442 (961) 9,451 -9.2% Fund Description This fund was established to account for State funds that arc used to implement programs and projects that reduce air pollution from motor vehicles. 1 This fund is used for Capital projects and to account for operational costs such as the natural gas operated Hameston Trolley,which provides free transportation within the Temecula business district. 1 ca Temecula 1 ' Fiscal Year 2015-16 Mid-Year Adjustments FUND: 160 SUPPLEMENTAL LAW ENFORCEMENT SERVICES(SLESF(FUND 2015-16 Year to Date proposed 2015-16 2014-IS Current Actuate Increase Revised %Increase Description Actuals Budget 32/31/2015 IDevease) Budge) (Decrease) Revenues by Source IrltergovemmeMal Revenues SLESF Grant Revenue 178,277 171,000 49,537 (747) 170,253 0.4% Use of Money and property Investment Interest 14 5 - 0.0% Total Revenues and Other Sources 176,291 171,000 49,542 (747) 170,253 -0.4% Expenditures by Category Operating Transfers Out-General fund 178,291 171,000 32,880 (747) 170,253 -0.4% Total Expenditures and Other Financing Uses 173,291 171,000 32,680 (747) 170,253 -0.4% Excessof Revenues Over iUnder)Expenditures - - 16,662 - - 0.0% Fund Balance,Beginning of Year 0.0% Fund Balance,End of Year 16,662 0.0% Fund Description This fund was established to account for the Supplemental Law Enforcement Services grant monies from the State of California which are provided to assist Cities in delivering front line law enforcement services. These monies supplement existing services and may not be used to supplant any existing funding for law enforcement services provided by the City. r City of Temecula ' ✓�� Fiscal Year 2015-16 Mid-Year Adjustments FUND: 161 LARRY ROBINSON REWARD FUND 2015-16 Year to Date proposed 2015-16 2014-15 Current Actuals Increase Revised %Increase Description A uals Budget 12/31/2015 IOetrease) Budget (Decrease) Revenues by Source the of Money and property Investment Interest 130 100 (2) - 100 0096 Total Remmers and Other sources 130 100 (2) 100 0.0% Expenditures by Category Operations and Maintenance 0.0% Total Expenditures and Other Financing Uses 0.0% Excess of Revenues Over(tinder)Expenditures 130 100 (2) - 100 0.0% Fund Balance,Beginning of Year 25,145 25,275 25,275 25,275 0.0% Fund Balance,End of Year 25,275 25,375 25,273 25,375 0.0% Fund Desogmn This fund was established to account for a reward for information that leads to the rapture and conviction of the persons)responsible for the murder of Larry Robinson. The General Fund contributed$25,000 and the public can also contribute to this fund. Once the reward is due to be paid,an appropriation will be made for the original$25,000 as well as any contributions made up to that time. This fund is to remain open until such time as ' the reward is paid out or until March 22,2018. If no person has been apprehended or charged with causing the death of Larry Robinson by March 22, 2018,all monies in the Fund will be returned with interest allocated to each contribution based on earning of City pooled investments,to the respective donors.Any undisbursed balance will be deposited in the City's General Fund for law enforcement or public safety purposes designated by the City Council. If one or more persons have been apprehended and charged but not yet convicted by March 22,2018,the Fund will be retained until trial of the persons)charged has been completed. If a conviction is not obtained,disbursements will be made as outlined above. City of Temecula Fiscal Year 2015-16 Mid-Year Adjustments FUND:165 AFFORDABLE HOUSING FUND 2015-I6 Year to Date Proposed 2015-16 2014-15 Current Actuals Increase Revised Is Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source Licem es,Permits and Service Charges Monitoring Fees 2,782 - - - - 0.0% Use of Money and Property Residual Receipt Distribution 46,997 35,172 - - 35,172 0.0% Investment Interest 480 300 97 - 300 0.0% Loan Interest 19,068 2,552 1,873 - 2,552 0.0% Rental Income 173,000 184,000 - - 184,000 0.0% Forgivable Loan Repayment 67,390 405 - - 0.0% Intergovernmental Revenues Agency Trust Contributions 250,000 250,000 - - 250,000 0.0% Reimbursements Miscellaneous Non Taxable 26,102 61 - - 0.096 Operating Transfers In General Fund 23,307 0.091 Total Revenues and Other Sources 609,125 472,024 2,436 472,024 0.0% Expenditures by Category Personnel 277,981 262,042 108,070 2,000 264,042 01% Operations and Maintenance 117,175 192,721 28,720 (2,000) 190,721 -1.0% Insurance 11.432 2.459 11.432 DO% Information Technology 17,938 3,219 17,938 0.0% support Services 3,904 367 3,904 0.0% Facilities 14,400 3,259 14,400 0.0% Total Expenditures and Other Financing Uses 39511% 502,437 1",094 502,437 OU% Excess of Revenues Over(Under)Expenditures 213,969 (30,413) 1143,659) - (30,413) 0.0116 Fund Balance,Beginning of Year 10,158,85s 10,372,824 10,372,824 10,372,824 0.0% Fund Balance,End of Year 10,372,824 10,342,411 10,229,166 10,342,411 0,D% Detail of Fund{Mare Nompandabie: Land Held for Resale 4,400,388 4,400,388 4,400,388 - 4,400,388 0.0% Notes and Loans 345,817 345,817 345,817 - 345,817 0.0% Advances to Successor Agency 5,250,954 5,250,954 5,250,954 - 5,250,954 0.0% gastrMad For: Community Development Projects 375,665 345,252 232,007 345,252 0.0% 10,372,824 10,342,411 10,229,166 10,342,411 0.0% Fund Description The Affordable Housing fund contains the assets as well as loan and rental income which have been transferred to the City of Temecula from the former Redevelopment Agency. 1 ' City of Temecula Fiscal Year 2015-16 �i/A,GNf� Mid-Year Adjustments FUND:170 MEASURE FUND 2015-16 Year to Date Proposed 2015-I6 2014-15 Current Actuals Increase Revised %Increase Description Actuals Budget W31/2015 (Decrease) Budget (Decreasel Revenues by Source Use of Money and Property Investment Interest 17,632 24,000 (5141 4,000 28,000 163% Reimbursements Miscellaneous 35,483 - - - 0.0% latergovernmental Revenues Measure A Reven ue 2,636,632 2,817,159 921,259 (73,480) 2,743,679 -2.6% Total Revenues and Other Sources 2,6119,747 2,841,159 920,745 (69,480) 2,771,679 -2.4% Expenditures by Category Operations and Maintenance 1,865,015 1,764,595 281,357 - 1,764,595 0.D% Operating Transfers Out-CIP 1,Sooi 3,891,614 3,891,614 O.D% Total Expenditures and Other Financing Uses 3,365,015 5,656,209 281,357 S,6S6,209 0.0% Excess of Revenues Over(Underl Expenditures 1675,268) (2,815,050) 639,398 (69,480) (2,884,530) 2.5% Fund Balance,Beginning of Year 4,492,915 3,817,646 3,817,646 3,817,646 0.0% Fund Balance,End of Year 3,817,646 1,002,596 4,457,034 (69,480) 933,116 -6.9% ' This and was This fund was established to account for the City's allocation of the County of Riverside's additional one-hat percent Saks tax for transportation. These monies are restncted for use on local streets.In 2002,Measure A was extended by Riverside County voters. Measure A will continue to fund transportation improvements through 2039. ' City of Temecula Fiscal Year 2015-16 Mid-Year Adjustments FU-----NFFF��D: 395 2011 FINANCING LEASE 2015-16 year to Date Proposed 2015-16 2010-15 Current Actuals Increase Revised %Increase Description Actuals Budget 12/3112015 (Decrease) Budget (Decrease) Revenues by Source Operating Transfers In General Fill 2,137,190 2,137,366 1,067,975 - 2,137,366 0D% Total Reverrues and Other sources 2,137,190 2,137,366 1,067,975 2,137,366 O.D% Expenditures by Category Debt Service Interest 893,190 846.366 428,975 - 866,366 0.096 Debt service Principal 1,244,000 1,291,000 639,000 1,291,000 D.O% Total Expenditures and Other Financing Uses 2,137,190 2,137,366 1,067,975 2,137,366 0.0% Excess of Revenues Over(Under)Expenditures - - - - QO% Fund Balance,Beginning of Year 0.0% Fund Balance,End of Year 0.0% Fund Description This fund was established to account for the payment of interest and principal of the refunding of the 2001 and 2008 Certificates of Participation (COPS).The 2001 COPS were originally issued to finance the construction of the Community Recreation Center and the 2008 Cops were originally issued to finance the construction of the Civic Center. 1 11' 1 City of Temecula Fiscal Year 2015-16 Mid-Year Adjustments EXHIBIT C Internal Service Funds FY2015-16 Mid-Year Budget ' Fiscal Year 2015-16 Mid-Year Budget Adjustments ' City of Temecula Fiscal Year 2015-16 Mid-Year Adjustments FUND:300 INSURANCE FUND 2015-16 Year to Date Proposed 2015-16 2014-15 Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source Licenses,Permits and Service Charges Charges For Services 1,018,153 995,378 233,951 - 995,378 0.0% Use of Money and Property Investment Interest 1,820 1,900 48 400 2,300 211% Total Revenues and Other Sources 1,019,973 997,278 233,999 400 997,678 0.0% Expenses by Category Personnel 107,368 116,822 54,728 6,395 123,217 5.5% Operations and Maintenance 838,982 864,979 231,336 (101,963) 763,016 -11.8% Total Expenses and Other Financing Uses 946,350 981,801 286,064 (95,568) 986,233 -9.7% Excess of Revenues Over(Under)Expenses 73,623 15,477 (52,065) 95,968 111,445 620.1% Net Position,Beginning of Year 206,736 280,359 280,359 280,359 0.0% Net Position,End of Year 280,359 295,836 228,294 95,968 391,904 32.4% Fund Description The Insurance Fund was established to account for the City's liability and property insurance costs. Fund Balance is a combination of both ' spendable and non spendable assets. These costs are allocated to each department based on the total number of Full Time Equivalent positions assigned to those departments. The City has a Self-Insured Retention(SIR)of$150,000 per incident,and strives to maintain a fund balance equal to two times the SIR. City of Temecula t- Fiscal Year 2015-16 (e k Gf ,F Mid-Year Adjustments FUND:305 WORKERS'COMPENSATION FUND 2015-16 Year to Date Proposed 2015-16 2014.15 Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decreasel Revenues by Source Licenses,Permits and Service Charges Charges for Services 243,953 - - - - 0.0% Use of honey and Property Investment Interest 747 500 (85) 300 800 60.0% Operating Transfers In General Fund - 250,000 125,000 - 250,000 0.0% Total Revenues and Other sources 24,700 250,500 124,915 300 250,800 0.1% Expenses by Category Operations and Maintenance 15,518 35,267 31,731 101,963 137,230 2891% Total Expenses and Other Financing Uses 15,518 35,267 31,731 101,963 137,230 289.1% Excess of Revenues Over(Under)Expenses 229,182 215,233 93,184 (101,663) 113,570 0.0% Net Position,Beginning of Year - 229,182 229,182 229,182 0.0% Net Position,End of Year 229,182 444,415 322,366 (101,663) 342,752 0.0% ' Fund tlon The Workers' Compensation Fund was established in Fiscal Year 2014-15 as the City transitions to aself-insured status for Workers' Compensation liabilities. Departments are charged based on each position allocated on a Full Time Equivalent basis,with a cost assigned to each position based on job duties and potential for risk. ' '1 City of Temecula ���-.%�� Fiscal Year 2015-16 /p 14 _. _ Mid-Year Adjustments FUND:310 VEHICLES AND EQUIPMENT FUND ZO15-16 Year to Date Proposed 2015-16 201415 Current Actuals Increase Revised %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease( Revenues by Source Licenses,Permits and Service Charges Charges for Services 197,858 168,833 37,122 - 168,833 0.0% Use of Money and Property Investment Interest 7,435 8,400 (119) 1,600 10,000 19.0% Total Revenues and Other Sources 205,293 177,233 37,003 1,600 178,633 0.9% Expenses by Category Operations and Maintenance 191,220 161,120 36,382 - 161,120 02% Total Expenses and Other Financing Uses 191,220 161,120 36,382 - 161,120 02% Excess of Revenues Over(Under)Expenses 14,073 16,113 621 1,600 17,713 9.9% Net Position,Beginning of Year 1,893,610 1,907,683 1,907,683 - 1,907,683 02% Net Position,End of Year 1,907,683 1,923,796 1,908,304 1,600 1,925,396 0.1% Detail of Fund Balance ' Nonsle: Vehicles les and and Equipment 337,043 353,156 371,753 353,156 0.0% Spendable: Vehicle and Equipment Purchases 1,570,640 1,570,640 1,536,551 1,600 1,572,240 0.0% 1,907,683 1,923,796 1,908,304 1,600 1,925,396 0.1% Fund Description The Vehicles and Equipment Fund was established to account for the depreciation of vehicles and capital equipment over their estimated useful lives,and to accumulate resources for the purchase of future replacement vehicles and equipment.Fund Balance is a combination of both spendable and non spendable assets.Departments are charged based on their percentage of assigned vehicles that carry a depreciable value. ' 1 City of Temecula 1 ` - Fiscal Year 2015-16 Mid-Year Adjustments FUND:320 INFORMATION TECHNOLOGY FUND 2015-16 Year to Date Proposed 2015-16 2014-15 Current Actuals Increase Revlsed %Increase Description Actuals Budget 12/31/2015 (Decrease) Budget (Decrease) Revenues by Source Licenses,Permits and service Charges Charges for Services 2,221,922 2,483,360 480,166 0 2,483,360 0.0% Use of Money and Property Investment Interest 3,493 2,500 192 100 2,600 4.0% Operating Transfers In General Fund - - Total Revenues and Other sources 2,225,415 2,485,860 480,358 l0D 2,485,960 0.0% Expenses by Category Personnel 1,444,807 1,551,351 689,892 - 1,551,351 0.0% Operations and Maintenance 768,735 934,510 471,382 2,549 937,059 0.3% Operating Transfer Out-Technology Replacement 1,226,510 - - - Total Expenses and Other Financing Uses 3,440,052 2,485,861 1,161,274 2,549 2,488,410 0.1% Excess of Revenues Over(Under)Expenses (1,214,637) (1) (690,916) (2,449) (2,450) 244853.5% Net Position,Beginning of Year 1,252,859 38,222 38,222 38,222 0.0% Net Position,End of Year 38,222 38,221 (642,694) (2,449) 35,772 -6.4% ' Fund Description The Information Technology Fund was established to fund and account for computer and telephone system operating and maintenance expenses. It is also used to depreciate all related computer and telephone equipment over their useful lives.Fund Balance is a combination of bath spendable and non spendable assets. Departments are charged based on the number of workstations assigned.The Temecula Public Library facility is charged directly for all IT expenditures and personnel costs related to the facility. ' t aY of Temecula Fiscal Year 2015-16 1 Mid-Year Adjustments FUND: 325 TECHNOLOGY REPLACEMENT FUND 2015-I6 Yearto Date Proposed 2015-16 2014-15 Current Actuate Increase Revised %Inmate Description Actuals Budget 12/31/2015 (Decrease) Budget [Decrease) Revenues by Source Licenses,Permits and Service Charges Charges for Services 291,186 316,330 47,769 - 316,330 0.0% Operating Transfer In Information Technology Fund 1,226,510 - - - - 0.0% Use of Money and Property Investment Interest 1,350 500 (1651 800 1,300 160.0% Total Revenues and Other sources 1,S19,046 316,&30 47,604 am 317,630 0.3% Expenses by Category Operations and Maintenance 291,097 316,830 48,673 316,830 0.0% Total Expenses and Other Financing Uses 291,097 316,830 48,573 316,830 0.0% Excess of Revenues Over(Under)Expenses 1,227,949 - (1,069) 800 800 100.0% Net Position,Beginning of Year - 1,227,949 1,227,949 - 1,227,949 0.0% Net Position,End of Year 1,227,949 1,227,949 1,226,880 800 1,228,749 0.1% ' Fund Description The Technology Replacement Fund was established in Fiscal Year 2014-15 in order to accumulate resources for computer and telephone equipment and software to fund future equipment replacement.Fund Balance is a combination of both spendable and non spendable assets. Contributions to this fund are made by departments utilizing the assets in an amount equivalent to the estimated cast to replace the item at the end of its useful life. ' L City of Temecula (7e^=-44T_� Fiscal Vear 2015-16 Mid-Year Adjustments FUND:330 SUPPORT SERVICES FUND 2035-16 Year to Date Proposed 201516 ZD14-15 Curtest Actuals Increase ReWsed %Inatase Description Actuate Budget 12/31/2015 leceease) Budget (Decrease) Revenues by Source Licenses,Permits and Service Charges Charges for Services 522,141 521,178 117,146 - 521,178 0.0% Use of Money and Property Investment Interest 2,244 2,700 51 300 3,000 11.1% Total Revenues and Other Sources 524,385 523,878 117,197 300 524,176 0.1% Expenses by Category Personnel 324,303 350,760 162,874 350,760 0.D% Operations and Maintenance 183,471 173,118 61,128 4,315 177,433 2.5% Total Expenses and Other Financing Uses 507,774 523,878 224,002 4,315 528,193 0.8% Excess of Revenues Over(Under)Expenses 16,611 - (106,805) (4,015) (4,015) 0.0% Net Position,Beginning of Year 438,258 454,869 454,869 454,869 0.0% Net Position,End of Year 454,869 454,869 348,064 (4,015) 450,854 -0.9% ' Des,criptlon Sere The Support Services Fund was established as a cost center for the City's central receptionist,duplicating,printing,and mailing activities. It is also used to depreciate all related copying and mailing equipment over their useful lives,and to accumulate resources for the purchase of future equipment. Fund Balance is a combination of both spendable and non spendable assets.Departments are charged based on a count of copies made in the previous fiscal year. L L City of Temecula ' f Fiscal Year 2015-16 (/j R Mid-Year Adjustments FUND:340 FACILITIES FUND 201536 Year to Date Proposed 2015,36 2014-15 Current Actuals Increase Revised %lnsxeasa Description ilctuals Budget 12/3112015 (Decrease( Budget (Decrease) Revenues by Source Unimues,Permits and Senike Charges Charges for Services 1,371,131 1,458,348 336,597 - 1,458,348 0.D% Use of Money and Property Investment Interest 1,682 700 57 1,800 2,500 257.1% Total Revenues and Other Sources 1,372,813 1,459,046 336,654 1,800 1,460,84111 0.1% Expenses by Category Personnel 506,136 529,582 255,688 - 529,582 D.D% Operations and Maintenance 786,036 937,187 358,142 29,204 966,391 31% Total Expenses and Other Financing Uses 1,292,172 1,466,769 613,830 29,204 1,495,973 2.0% Excess of Revenues Over(Under)Expenses 80,641 (7,721) (277,176) (27,404) (35,125) 354.9% Net Position,Beginning of Year 383,811 464,452 464,452 464,452 0.0% Net Position,End of Year 464,452 456,731 187,276 (27,404) 429,327 -6.0% ' Fund I/escHptlon The Facilities Fund was established to account for the cost of the Civic Center, Former City Hall Facility, City Maintenance Facility, Field Operations Center,and Civic Center Parking Structure operations and maintenance. Fund Balance is a combination of both spendable and non spendable assets.Departments are charged based on square footage allotted as well as full time staff equivalents assigned. City Temecula Fiscal Year 2015-16 ' Mid-Year Adjustments EXHIBIT D Budget and Fiscal Policies 1 ' Fiscal Year 2015-16 Mid-Year Budget Adjustments City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES Pages I. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION.......................................... 229 A. Annual Operating Budget(AOB)...........................................................................................229 B. Balanced Budget....................................................................................................................231 C. Five Year Financial Forecast..................................................................................................231 D. Capital Improvement Program(CIP).....................................................................................232 II. FINANCIAL REPORTING.......................................................................................................235 A. Annual Reporting...................................................................................................................235 B. Interim Reporting..................................................................................................................235 C. Budget Amendments.............................................................................................................235 D. Extended Annual Reporting ..................................................................................................235 III. FUND BALANCE AND RESERVES.........................................................................................236 A. Fund Balance Policy...............................................................................................................236 B. Reserve for Economic Uncertainty........................................................................................236 C. Secondary Reserve for Contingencies...................................................................................236 ' D. Future Capital Project Designations......................................................................................236 E. Other Designations and Reserves.........................................................................................236 F. Fund Balance Components....................................................................................................237 G. Hierarchy of Spending Fund Balance.....................................................................................238 IV. CONTINGENCY PLANNING..................................................................................................239 A. One Time Events....................................................................................................................239 B. Ongoing Fiscal Constraints....................................................................................................239 V. STAFFING POLICY................................................................................................................240 A. Regular Staffing.....................................................................................................................240 B. Project Staffing......................................................................................................................240 C. Temporary Staffing................................................................................................................241 D. Work Hours ...........................................................................................................................241 E. Overtime Management.........................................................................................................241 F. Independent Contractors......................................................................................................242 G. Productivity...........................................................................................................................242 H. Contracting for Services—Private Sector..............................................................................243 I. Contracting for Services—Government Service Contracts...................................................244 J. Contracting for Services—Regional Approach......................................................................244 K. Classification Plan Transition L. Comprehensive Annual Leave Payout Fiscal Year 2015-16 Annual Operating Budget L City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES Pages VI. ASSET MANAGEMENT AND REPLACEMENT(AMAR) POLICY............................................ 245 A. AMAR Definit ion....................................................................................................................245 B. AMAR Process .......................................................................................................................245 C. AMAR Policy..........................................................................................................................246 D. AMAR Funding Strategy........................................................................................................246 E. Replacement Funds...............................................................................................................247 VII. INVESTMENTS..................................................................................................................... 247 A. Introduction...........................................................................................................................247 B. Objectives..............................................................................................................................247 C. Scope.....................................................................................................................................248 D. Investment Authority............................................................................................................249 E. Safekeeping of Securities......................................................................................................250 F. Reporting...............................................................................................................................250 G. Qualified Dealers...................................................................................................................250 ' H. Authorized Investments........................................................................................................250 LIneligible Investments...........................................................................................................253 J. Swapping of Securities..........................................................................................................253 K. Portfolio Adjustments...........................................................................................................253 L. Policy Review.........................................................................................................................253 M. Ethics and Conflict of Interest...............................................................................................254 VIII. CAPITAL FINANCING AND DEBT MANAGEMENT...............................................................255 A. Capital Financing...................................................................................................................255 B. Debt Management................................................................................................................256 C. Debt Capacity........................................................................................................................257 D. Independent Disclosure Counsel...........................................................................................257 E. Land-Based Financings..........................................................................................................258 F. Conduit Financings................................................................................................................261 G. Refinancings..........................................................................................................................261 Fiscal Year 2015-16 Annual Operating Budget `e City of Temecula _ l`/ J R Fiscal Year 2015-16 BUDGET AND FISCAL POLICIES Annual Operating Budget Pages IX. INTERFUND TRANSFERS AND LOANS POLICY....................................................................262 A. Establishment of Various Funds............................................................................................262 B. Transfer Between Funds........................................................................................................262 C. Interfund Loans.....................................................................................................................262 X. APPROPRIATIONS LIMITATION..........................................................................................262 A. Adopting a Resolution...........................................................................................................262 B. Supporting Documentation Available for Review.................................................................262 C. Calculating Appropriations....................................................................................................263 D. Review of User Fees and Charges.........................................................................................263 E. Support of Legislation or Initiatives......................................................................................263 F. Voter Approval to Amend Appropriation Limit.....................................................................263 1 Fiscal Year 2015-16 Annual Operating Budget ���f/�� City of Temecula ( "t Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES As a part of the budget process, staff reviews the City's Budget and Fiscal Policies to ensure that the policies are timely and that they provide sufficient guidance for implementation of Council direction. Staff made the following recommendations as part of the Fiscal Year 2014-15 Annual Operating Budget process in order to add further clarification and to augment the policy document,as summarized below. I II.B. Reserve for Economic Uncertainty-modified Eligible uses of these reserve funds were added to the policy, so as to clearly define how and when these funds may be utilized in the future. III.C.Secondary Reserve far Contingencies-new A secondary level of reserve for the City's General Fund was added, equal to 5% of expenditures, to serve as an added cushion before utilizing the reserve for economic uncertainty in the event the City experiences unforeseen economic hardship. IV. Contingency Planning—new As the City transitions into a maintenance City and excess Fund Balance is not as plentiful as in prior years,a contingency plan can serve as a roadmap to follow in the event of significant fiscal decline. VI.E. Replacement Funds—new ' In addition to the existing Vehicles and Equipment Replacement Fund, the Technology Replacement fund was established,to accumulate the necessary funds to replace the City's technology infrastructure. Meetings were held with Councilmembers in order to relay these recommendations and to gain direction, culminating in a discussion of the updated policies at the Budget Workshop. The result is the following comprehensive list of budget and fiscal policies which were used in the preparation of the Fiscal Year 2014-15 Annual Operating Budget, and which will be used throughout the fiscal year. As policies are refined and or reworked,they will be maintained as one document and brought forward to Council for review as part of the budget preparation, modification,and adoption process. I. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION A. Annual Operating Budget(AOB) Through its Annual Operating Budget,the City will link resources with results by: 1. Identifying community needs for essential services that improve quality of life through strategic planning that: a. Organize the programs required to provide these essential services; b. Establish program policies and goals, which define the nature and level of program services required; C. Identify activities performed in delivering program services. 2. Proposing goals for improving the delivery of program services that: a. Identify and appropriate the resources required to perform program ' activities and accomplish program goals. Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES I. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) b. Set objectives to measure Performance(progress)pertaining to: • Long term goals that align Council priorities with financial resources; • Output of program activities; • Accomplishment of program objectives; • Expenditure of program appropriations. 3. The AOB process encompasses the development,implementation, and evaluation of a plan for the provision of services for the upcoming fiscal year. The process includes political, managerial, planning, communication, and financial dimensions. The budget incorporates a long-term perspective, establishes linkages to broad organizational goals, and focuses budget decisions on desired results and outcomes.The AOB is formalized via the following process: a. A budget workshop is held with the City Council to receive Council direction and public comment, prior to budget preparation; b. Budget team updates policies and procedures for budget preparation, creates the budget process calendar, and prepares the current budget schedules for each department to use in preparing the new budget; C. A budget kickoff workshop is held with the City Manager, Department Directors, and Department Analysts to discuss the status of the current fiscal year budget, discuss the Five Year Financial Forecast, review the upcoming budget process calendar, discuss the impacts of the current economic conditions at the State and Federal levels, and discuss the essential principles and elements of the budget process; d. Individual meetings are held with the budget team and each department to assist in the budget development process; e. The City Manager, in collaboration with the budget team, holds meetings with each department director (and analysts) to discuss their department budget request; f. A budget workshop is held with the City Council to receive public comment and to review the components of the proposed budget, prior to formal consideration for adoption; g. City Manager submits the proposed AOB and salary plan to the City Council at a public meeting for approval. Fiscal Year 2015-16 Annual Operating Budget t?� A l City of Temecula Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES I. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) B. Balanced Budget The City will maintain a balanced budget over the period of the Financial Strategic Plan. This means that: 1. Operating revenues must fully cover operating expenditures; 2. Ending fund balance must meet minimum policy levels. For the General Fund, this level has been established at 20% of operating expenditures for economic uncertainties and to support the City's credit worthiness, cash flow, and response to local disasters. C. Five Year Financial Forecast The City will prepare a five year financial forecast bi-annually to assist in long range planning and policy development. The five year forecast provides a tool to evaluate the ability of the City to fund proposed programs, operating and maintenance costs, capital expenditures,as well as operating costs related to future capital improvement projects. 1. Revenues are projected using a conservative approach, and are based on ' historical trends,stable residential development projections, internal analysis,and commercial growth that incorporates known development projects. Separate sets of assumptions are developed for major revenue types such as sales tax property tax, community development fees, transient occupancy taxes, and investment income; 2. Departmental expenditure projections are developed using anticipated cost of living increases for general administrative operating costs.Additional assumptions are incorporated for major expenditure categories such as public safety to ensure that commercial and residential growth projections are addressed to main current service levels. The five year capital improvement program is reviewed with the annual operating budget, and maintenance costs of each proposed project are identified and included in the forecast; 3. The five-year forecast indicates whether projected revenue growth will support anticipated expenditures for current levels of service. However, as the City continues to grow, it is important to ensure that it can meet increasing demands, and be in a position to respond to possible changes in economic conditions. The five-year forecast is a dynamic tool that requires bi-annual update and review of its underlying assumptions to keep the City in a position of strong fiscal condition. Fiscal year 2015-16 Annual Operating Budget �_ oT City of T emecula CeFiscal Year Budget ' Annual Operating Budget BUDGET AND FISCAL POLICIES I. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) D. Capital Improvement Program (CIP) 1. CIP Purpose - The purpose of the Capital Improvement Program (CIP) budget document is to serve as a planning tool, which coordinates the level ranking, financing, and scheduling of major projects undertaken by the City. All projects presented in the five-year CIP budget are carefully programmed to ensure the community's capital improvement needs are met both now and in the future. In addition, the projects provide additional opportunities and access to the City and improve the overall quality of life as identified in the Quality of Life Master Plan (QLMP). This document is dynamic and, consequently, must be revised annually to address changing needs, level rankings, and financial conditions. The City's goal in providing a CIP Budget is to develop a multi-year plan for capital improvement, update it annually, and follow through with all capital improvements in accordance with the plan. It also allows staff to budget operating and maintenance costs into the five year projection in order to determine the total cost of each project before it is undertaken. ' 2. CIP Development-This CIP budget document is developed by incorporating input from City Council and key management team members, based on community comments and feedback received throughout the year. This team then, through several workshops, identifies and evaluates community needs in the areas of roads/streets, bridges, public buildings, parks and recreation facilities, and redevelopment projects. Each proposed project is reviewed and discussed to ensure funding, timing, and necessity. A CIP City Council workshop is held to provide the City Council with an opportunity to review each project in detail, and to receive public comments concerning the five-year program. 3. CIP Proiects: $30,000 or More - The capital improvements presented in the budget are the City's major projects, which exceed $30,000 in cost, have long-term life spans, and are generally non-recurring. These projects include land and right of way acquisition, design, construction or rehabilitation of public buildings or facilities, public infrastructure design and construction, park design and construction, and redevelopment projects. 4. Project Manager- Every CIP project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed,and periodically report project status. S. Project Benefit - Projects must identify a benefit and reference a Core Value (QLMP)goal. 6. CIP Review Committee - In determining the relative merit of a proposed project, key management team members evaluate projects for feasibility, community enhancement, infrastructure and historic preservation,and safety. Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 ' BUDGET AND FISCAL POLICIES Annual Operating Budget I. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) 7. CIP Levels - Projects in the CIP are scheduled in each of five fiscal years based on community needs, as determined by the City Council and availability of funding. Level rankings in each major category(Circulation, Infrastructure/Other, Parks and Recreation, and SARDA/Housing) are assigned in accordance with the following guidelines: a. LEVEL I: The project is urgent and must be completed as soon as feasible. Failure to address the project may impact the health, safety, or welfare of the community or have a potential significant impact on the financial well-being of the City. The project must be initiated or financial opportunity losses may result. b. LEVEL II: The project is important and addressing it is necessary. The project impacts safety, law enforcement, health, welfare, economic base, quality of life,and has been identified as a priority in the Quality of Life Master Plan. C. LEVEL III:The project will enhance quality of life and will provide a benefit to the community. Completion of the project will improve the community by providing cultural, recreational, and/or aesthetic value, or is deemed as a ' necessary improvement to a public facility. d. Future Years Projects: The project will be an improvement to the community, but does not necessarily need to be completed within a five year capital improvement program time frame. 8. CIP Administrative Costs - The administrative costs associated with managing CIP projects are estimated (generally as five to ten percent of estimated construction costs), and included in each project budget 9. CIP Operations and Maintenance (O & M) - Future operations and maintenance costs that result from CIP projects are estimated and identified in the CIP project sheets. These incremental future operating costs are incorporated into the five year forecast. 10. CIP Phases - The CIP will emphasize project planning, with projects progressing through at least two and up to ten of the following phases: a. Designate (Assigned). Appropriates funds based on projects designated for funding by the Council through adoption of the Financial Strategic Plan. b. Study_ Concept design, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, specification preparation for equipment purchases. C. Environmental Review. Compliance with CEQA, NEPA and other environmental studies, if necessary. Fiscal Year 2015-16 Annual Operating Budget iTt City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES 11. FINANCIAL STRATEGIC PLAN PURPOSE AND ORGANIZATION (continued) d. Real Property Acquisitions. Property acquisition for projects, if necessary. e. Site Preparation. Demolition, hazardous materials abatements, other pre construction work. f. Design. Final design, plan and specification preparation and construction cost estimation. g. Construction. Construction contracts. h. Construction Management. Contract project management and inspection, soils and material tests,other support services during construction. i. Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other equipment items acquired and installed independently from construction contracts. 11. CIP Appropriation - The City's annual CIP appropriation for study, design, acquisition and/or construction is based on the projects designated by the Council through adoption of the Financial Strategic Plan. Adoption of the Financial Strategic Plan CIP appropriation does not automatically authorize funding for ' specific project phases. This authorization generally occurs only after the preceding project phase has been completed and approved by the Council and costs for the succeeding phases have been fully developed. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fund balance or allocated to another project. If project costs at the time of bid award are greater than budget amounts, five basic options are available: a. Eliminate the project; b. Defer the project for consideration to the next Financial Strategic Plan period; C. Rescope or change the phasing of the project to meet the existing budget; d. Transfer funding from another specified, lower level ranking project. e. Appropriate additional resources as necessary from fund balance. 12. CIP Budget Carryover - Project accounts, which have been appropriated, will not lapse until completion of the project phase. 13. Program Obiectives - Project phases will be listed as objectives in the program narratives of the programs,which manage the projects. 14. General Plan Consistency Review-All projects are evaluated by the City's Planning Commission to ensure consistency with the provisions of the City of Temecula General Plan, while considering the City's long-term vision as developed by the City Council. The proposed Circulation, Infrastructure, and Parks and Recreation ' projects are reviewed and approved by the Planning Commission, Public/Traffic Safety Commission,and the Parks and Recreation Commission. Fiscal Year 2015-16 Annual Operating Budget 1 City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES Ill. FINANCIAL REPORTING A. Annual Reporting The City will prepare annual financial statements as follows: 1. The City will contract for an annual audit by a qualified independent certified public accountant (or accounting firm). The City will strive for an unqualified auditors'opinion. 2. The City will use generally accepted accounting principles in preparing its annual financial statements, and will strive to meet the requirements of the GFOA's Award for Excellence in Financial Reporting program. 3. The City will issue audited financial statements within 180 days after year-end. B. Interim Reporting The City will prepare and issue timely interim reports on the City's fiscal status to the Council and staff. This includes: on-line access to the City's financial management system by City staff; monthly reports to program managers; formal quarterly reports to the Council and Department Directors; mid-year budget reviews; and interim annual reports. ' C. Budget Amendments The Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances. D. Extended Annual Reporting The City will prepare extended annual reports as required by federal and state requirements including, but not limited to: 1. State Controller Report 2. Street Reports Fiscal Year 2015-16 Annual Operating Budget 1 ` City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES 1111. FUND BALANCE AND RESERVES A. Fund Balance Policy Fund balance represents the accumulation of actual revenues and other financing sources in excess of actual expenditures and other uses at year-end. In general terms, it represents the City's accumulated "savings' from year to year, as any fund balance realized at year-end is added to (or deducted from if expenditures exceeded revenues for that particular year)the previous year's fund balance. Fund balance is often referred to as"reserves." B. Reserve for Economic Uncertainty The City will maintain a minimum fund balance of at least 20% of operating expenditures in the General Fund, in order to adequately provide resources in the event of an unexpected draw on City finances. Eligible uses of these reserve funds include: • Expenditures due to local disasters/acts of nature • Lass of major revenue source(s) due to financial hardship or economic downturn • State-imposed take of local revenue/mandated payments • Significant unanticipated expenditures ' • Significant payout of Comprehensive Annual Leave for employees leaving City service C. Secondary Reserve for Contingencies In addition to the Reserve for Economic Uncertainty, the City will strive to maintain an operating reserve within the General Fund in the amount of 5% of General Fund operating expenditures. Use of these reserve funds shall be limited to: • Covering annual operating expenditures if revenue falls short of projections, creating an annual operating deficit. • Making one-time investments in Capital infrastructure that will create long-term operational savings to the General Fund, leverage available grant funds, or provide funding for projects that will create an economic benefit to the City. D. Future Capital Project Designations The Council may designate specific fund balance levels for future development of capital projects that it has determined to be in the best long-term interests of the City. E. Other Designations and Reserves In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law,or generally accepted accounting principles. 1 Fiscal Year 2015-16 Annual Operating Budget �l City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES III. FUND BALANCE AND RESERVES (continued) F. Fund Balance Components This policy establishes the procedures for reporting unrestricted fund balance in the General Fund financial statements, as well as a fund balance expenditures hierarchy. Fund Balance commitments and assignments ensure that there will be adequate financial resources to protect the City against circumstances such as revenue shortfalls and unanticipated expenditures. The Policy also authorizes and directs the Director of Finance to prepare financial reports and categorize fund balance per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. There are five separate components of fund balance which identify the specific purposes for which amounts can be spent: (1) Nonexpendable Fund Balance — inherently nonexpendable; (2) Restricted Fund Balance — externally enforceable limitations on use; (3) Committed Fund Balance — self-imposed limitations on use; (4) Assigned Fund Balance — limitation resulting from intended use; (5) Unassigned Fund Balance—residual net resources. 1. Nonexpendable Fund Balance - Amounts that cannot be spent because they are ' either (a) not in spendable form, such as prepaid items or inventories; or (b) legally required to be maintained intact, such as the principal portion of an endowment. 2. Restricted Fund Balance - Amounts for a specific purpose that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, other governments' regulations; or (b) imposed by law through constitutional provisions or enabling legislation. 3. Committed Fund Balance - Amounts authorized for specific purposes by a government's highest level of decision making authority (City Council). These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period however, the amount can be determined subsequently.The City's committed fund balance includes a reserve for economic uncertainty. It is City policy to maintain a reserve of 20% of Annual General Fund appropriations. Amounts are committed to finance any significant unanticipated revenue shortfalls, negative State budget impacts or impacts from natural disasters or other catastrophic events. Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES III. FUND BALANCE AND RESERVES (continued) 4. Assigned Fund Balance - Amounts that are constrained for specific purposes, but are neither restricted nor committed. For all governmental funds other than the General Fund, any remaining amounts not classified as nonexpendable, restricted, or committed are considered assigned. For the General Fund,this policy delegates the authority to assign amounts to be used for specific purposes to the Finance Director in consultation with the City Manager for the purpose of reporting these amounts in annual financial statements. 5. Unassigned Fund Balance - Residual net resources of the General Fund in excess of what can be classified in one of the other four categories. G. Hierarchy of Spending Fund Balance Restricted fund balance should be spent first when an expenditure is incurred for which both restricted and unrestricted fund balance is available. When an expenditure is incurred for purposes where amounts in any of the unrestricted classifications of fund balance could be used, committed amounts are to be spent first, followed by assigned amounts and then unassigned amounts. 1 1 Fiscal Year 2015-16 Annual Operating Budget L City of Temecula Fiscal Year 2015-16 ' BUDGET AND FISCAL POLICIES Annual Operating Budget IV. CONTINGENCY PLANNING In response to adverse financial and economic conditions that could negatively impact the City's fiscal health, a Contingency Plan will provide for a measured response to potential fiscal challenges, as opposed to reactionary decision-making that could hinder the long-term financial solvency of the City. In accordance with Budget Policies III.B and III.C,the City will strive to maintain reserves in the amount of 25% of General Fund operating expenditures. Eligible uses of these reserve funds are outlined in the aforementioned policy; however this Contingency Plan will address the hierarchy of utilizing reserve funds, in the event the City experiences significant or sudden fiscal constraints. The type of fiscal challenge will dictate the appropriate budgetary measure to implement in order to ensure solvency. If the fiscal constraint cannot be absorbed by annual budgetary savings,the following hierarchy shall be followed: A. One Time Events In the event the City is faced with a non-recurring fiscal constraint, such as a State mandated payment or a natural disaster, the use of reserve funds is an appropriate ' mitigation. The Secondary Reserve for Contingencies shall be utilized first, and fully exhausted prior to utilizing the Economic Uncertainty Reserve. B. Ongoing Fiscal Constraints In the event the City experiences the loss of a major revenue source outside of the City's control lie. acts of legislation, corporate decisions and/or economic downturn), the City will need to adjust its operations in order to maintain a balanced budget. Circumstances may arise when the City is unable to react quick enough to offset a sudden loss in revenue, and will be required to utilize reserves to supplant the current Operating Budget. The Secondary Reserve for Contingencies shall be utilized first, and fully exhausted prior to utilizing the Economic Uncertainty Reserve. Continued use of reserve funds shall not exceed two budget cycles, to allow adequate time for the implementation of operational changes, while limiting the ongoing dependency on reserves. Implementation of Contingency Plan actions requires the majority approval of the City Council. 1 Fiscal Year 2015-16 Annual Operating Budget y/�� City of Temecula (e�Z"" '� Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES V. STAFFING POLICY A. Regular Staffing 1. The budget will fully appropriate the resources needed for authorized regular staffing. 2. Regular full-time benefitted employees will represent the core work force and the preferred means of staffing ongoing, year-round program activities and services. The City will strive to provide competitive compensation and benefit schedules for its authorized regular work force. Each regular employee will: a. Fill an authorized regular position; b. Receive salary and benefits consistent with labor agreements or other City Council approved compensation plans. 3. To manage the growth of the regular work force and overall staffing costs,the City will follow these procedures: a. The Council will authorize all regular positions. b. The Human Resources Department will coordinate and approve the hiring of all regular employees. ' C. Supplement core staff with a balanced workforce consisting of part-time, contract,and independent contractors. d. All requests for additional regular positions will include evaluations of: • The necessity,term and expected results of the proposed activity; • Staffing and material costs including salary, benefits, equipment, uniforms, clerical support and facilities; • The ability of private industry to provide the proposed service; • Additional revenues or cost savings,which may be realized. e. Periodically, and before any request for additional regular positions, existing programs will be re-evaluated to determine if services can be provided with existing regular employees. f. The City will make every effort to conduct an internal recruitment to fill regular positions. The City will evaluate the advantages and disadvantages of conducting an internal recruitment versus an external recruitment on a case-by-case basis. B. Project Staffing 1. The hiring of project employees will not be used as an incremental method for expanding the City's regular work force. 2. Project employees include all employees other than regular employees, ' temporary staffing, elected officials and volunteers. Project employees will generally augment regular City staffing as extra-help employees, seasonal employees,contract employees, interns and work-study assistants. Fiscal Year 2015-16 Annual Operating Budget 11 ���" City of Temecula Cep"" l ' Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES V. STAFFING POLICY (continued) 3. The City Manager and Department Directors will encourage the use of project employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than full-time, year-round staffing is required. Under this guideline, project employees will be hired for up to one year at a time in conjunction with the annual operating budget on an at-will basis. Moreover, project employee hours will generally not exceed 50% of a regular, full-time position (1,000 hours annually). There may be limited circumstances where the use of project employees on an ongoing basis in excess of this target may be appropriate due to unique programming or staffing requirements. However, any such exceptions must be approved by the City Manager based on the review and recommendation of the Human Resources Department. C. Temporary Staffing 1. Temporary Staffing agencies can be contacted only in the case of a short-term assignment such as sick leave,disability leave, maternity leave, etc. 2. The City will pay the Temporary Staffing Agency a fair base rate for the employee with a negotiated markup while the temporary employee is providing work for the 1 City. D. Work Hours 1. Regular employee, project employee,and temporary employee work hours will be based on the needs of the City and the position. 2. Employee work hours may be flexed in an effort to minimize overtime. E. Overtime Management 1. Overtime should be used only when necessary and when other alternatives are not feasible or cost effective. 2. All overtime must be pre-authorized by a Department Director or delegated in accordance with existing policy. 3. Departmental operating budgets should reflect anticipated annual overtime costs and departments will regularly monitor overtime use and expenditures. 4. When considering the addition of regular, project, or temporary staffing, the use of overtime as an alternative will be considered. The department will take into account: a. The duration that additional staff resources may be needed; b. The cost of overtime versus the cost of additional staff; C. The skills and abilities of current staff, d. Training costs associated with hiring additional staff; ' e. The impact of overtime on existing staff; f. The impact on quality of services. Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES V. STAFFING POLICY (continued) F. Independent Contractors Independent contractors are not City employees.They may be used in two situations: 1. Short-term, peak workload assignments to be accomplished using personnel contracted through an outside employment agency (OEA). In this situation, it is anticipated that City staff will closely monitor the work of OEA employees and minimal training will be required. However, they will always be considered the employees of the OEA and not the City. All placements through an OEA will be coordinated through the Human Resources Department and subject to the approval of the Human Resources Department. 2. Construction of public works projects and delivery of operating, maintenance or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills and equipment will generally be determined and provided by the contractor. Contract awards will be guided by the City's purchasing policies and procedures. G. Productivity ' The City will repeatedly monitor and review the City's methods of operation to ensure that services continue to be delivered in the most cost-effective manner possible. This review process encompasses a wide range of productivity issues, including: 1. Analyzing systems and procedures to identify and remove unnecessary review requirements. 2. Evaluating the ability of new technologies and related capital investments to improve productivity. 3. Developing the skills and abilities of all City employees. 4. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance. 5. Evaluating the ability of the private sector to perform the same level of service at a lower cost. 6. Periodic formal reviews of operations on a systematic,ongoing basis. 7. Maintaining a decentralized approach in managing the City's support service functions. Although some level of centralization is necessary for review and control purposes,decentralization supports productivity by: a. Encouraging accountability by delegating responsibility to the lowest possible level; b. Stimulating creativity, innovation and individual initiative; C. Reducing the administrative costs of operation by eliminating unnecessary review procedures; Fiscal Year 2015-16 Annual Operating Budget �64 City of Temecula C(Z Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES V. STAFFING POLICY (continued) d. Improving the ability of the organization to respond to changing needs, and identify and implement cost-saving programs; e. Assigning responsibility for effective operations and citizen responsiveness to the department. H. Contracting for Services—Private Sector 1. General Policy Guidelines: a. Contracting with the private sector for the delivery of services may provide the City with a significant opportunity for cost containment and productivity enhancements. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost-effective programs. b. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies and ongoing operating and maintenance services. C. In evaluating the costs of private sector contracts compared with in-house performance of the service, indirect, direct, and contract administration ' costs of the City will be identified and considered. d. Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below. e. For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition, reassignment or absorption by the contractor. 2. Evaluation Criteria - Within the general policy guidelines stated above, the cost effectiveness of contract services in meeting established service levels will be determined on a case-by-case basis using the following criteria: a. Is a sufficient private sector market available to competitively deliver this service and assure a reasonable range of alternative service providers? b. Can the contract be effectively and efficiently administered? C. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? d. Can a private sector contractor better respond to expansions, contractions or special requirements of the service? e. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as the contractor's performance after bid award? f. Does the use of contract services provide us with an opportunity to redefine service levels? Fiscal Year 2015-16 Annual Operating Budget IQL �_ oT City of Temecula C(Z Fiscal Year Budget ' Annual Operating Budget BUDGET AND FISCAL POLICIES V. STAFFING POLICY (continued) g. Will the contract limit our ability to deliver emergency or other high priority services? h. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for its delivery? I. Contracting for Services—Government Service Contracts 1. General Policy Guidelines: a. Contracting with other government entities for the delivery of services such as police and fire provides the City with significant opportunities for cost containment and productivity enhancements. The City utilizes government service contracts to deliver municipal services as a key element in the City's continuing efforts to provide cost-effective programs. b. Police Contract Services—The City contracts with Riverside County Sheriff's Department for police services. Under this contract the City maintains a ratio of one (1) uniformed police officer for every one thousand (1000) residents. The City will ensure that contracted staffing levels are compatible with the City population and needs. Contracting with the County facilitates an efficient, effective and affordable model of policing for the community. The police contract allows the city to partner with the County to leverage resources to reduce costs for supervision, administration, training, clerical support,vehicles and equipment. C. Fire Contract Services - The City contracts with the Riverside County Fire Department for all fire services. Contracting with the County facilitates an efficient, effective and affordable model of fire protection, disaster preparedness, fire prevention, and emergency operation services for the community. The fire contract allows the City to partner with the County to leverage resources to reduce costs for supervision, administration, training, clerical support,vehicles and equipment. J. Contracting for Services—Regional Approach 1. A regional approach to public services leverages economies of scale to improve outcomes and services to the citizens. Therefore, prior to entering into private or government service contracts, the City will require the completion of a systematic assessment to determine whether a regional approach to providing services is necessary. a. Animal Control Services - The City contracts with Animal Friends of the Valleys for animal control services and the County of Riverside (via the Southwest Community Financing Authority) for animal sheltering services. Contracting with multi-agencies for these services demonstrates a regional ' approach of leveraging resources to provide efficient services (at a reduced cost). Fiscal Year 2015-16 Annual Operating Budget �_ 4�T City of Temecula Ce Fiscal Year 2015-11 ' Annual Operating Budget BUDGET AND FISCAL POLICIES V. STAFFING POLICY (continued) K. Classification Plan Transition 1. On September 8, 2015, the Temecula City Council adopted a Side Letter to the 2013 Memorandum of Understanding between the City of Temecula and the General Employees of the City of Temecula, represented by Teamsters Local 911. The Side Letter outlined the implementation of the 2014 Classification Structure adopted by the City Council on March 25,2014. b. Effective July 1, 2015, the City will make all good faith attempts to fill all vacancies following the Reclassification Study/Finalized Reclassification Study Recommendations instead of a competitive process until all said recommendations are implemented. C. Employees filling vacancies and all newly created positions shall use the 2014 Classification Structure and Salary Schedule B. ' d. In the event a department does not have adequate salary savings to offset the cost associated with the implementation of the 2014 Classification Structure and Salary Schedule B for said vacancy or newly created position, the City Manager is authorized to transfer an amount equal to the funding shortfall from the General Fund Non-Departmental Account No. 001.199.999.5354 — Classification Plan Transition to the affected department. L. Comprehensive Annual Leave Time Payout 1. Upon an employee's voluntary separation from City service, the employee shall have the option to defer their official separation date to that which corresponds to the exhaustion of the employee's Comprehensive Annual Leave (CAL) balance. 2. The separated employee's vacant position will be evaluated by the Department Director, and upon City Manager approval, the Department Director may fill the vacant position. In the event the department does not have adequate savings to offset the cost to fill the vacancy, the City Manager is authorized to transfer an amount equal to the funding shortfall from the General Fund Non-Departmental Account No. 001.199.999.5353—Separation CAL Payout to the affected department. 1 Fiscal Year 2015-16 Annual Operating Budget /z City Temecula l// �_ 17_ Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES VI. ASSET MANAGEMENT AND REPLACEMENT (AMAR) POLICY A. AMAR Definition Asset Management and Replacement is the practice of strategically managing the life cycle of the City's capital infrastructure to achieve the greatest return on every tax dollar invested. The capital infrastructure's life-cycle includes how the asset is planned, designed, constructed, operated, maintained, replaced, and disposed. Capital infrastructure includes streets, roads, public facilities, parks and trails, and drainage facilities,as follows: 1. Streets and Roads - Assets related to the provision of transportation (e.g. pedestrian, bicycles, commercial vehicles, private vehicles,and public vehicles.) 2. Public Facilities - Building and land assets used for a diverse range of services including community services, recreation, accommodation, and municipal administration. 3. Parks and Trails - Assets which provide opportunities for organized and informal recreation activities (e.g. sports, exercise), provide aesthetic and cultural value to the community, and provide public spaces for social interaction. ' 4. Drainage Facilities - Assets which provide a measure of flooding protection to the community from storm water runoff and those assets which improve the water quality of storm water runoff going into main drains and waterways. B. AMAR Process As assets age, their performance (service provided) will deteriorate. Therefore, a process must be applied to determine when the ability of an asset to meet service standards deteriorates to an unacceptable level. This means considering all management options and strategies as part of the asset lifecycle, from planning to disposal.The objective of managing the assets in this manner is to look at long-term cost impacts when making asset management decisions. An effective process will be based on the following sequence: IWIW The AMAR Policy provides general direction and guidance for the AMAR Plan.The AMAR Plan provides more detailed direction and guidance for all major asset classes (Streets and Roads, Public Facilities, Parks and Trails, and Drainage Facilities). The AMAR Operational Plans cater for the delivery of specific asset management. The AMAR Plan is based on applicable management studies, best practices, and analysis and should be updated every five years. The actual replacement of assets via the AMAR Operational Plans is dependent on staff analysis and recommendation after a review of ' any intervening variables such as variations in service delivery demands, force majeure, and programming. Fiscal Year 2015-16 Annual Operating Budget City of Temecula (eZ�_ 4 Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VI. ASSET MANAGEMENT AND REPLACEMENT (AMAR) POLICY C. AMAR Policy The purpose of the Asset Management and Replacement Policy (AMAR Policy) is to demonstrate the City's commitment to the responsible management of the City's capital infrastructure. The AMAR Policy ensures adequate provisions are made for the long-term replacement of the City's capital infrastructure by: 1. Incorporating appropriate asset management best practices to ensure that the City delivers the highest appropriate level of service through its assets to: a. Ensure service delivery needs form the basis of asset management; b. Incorporate a life-cycle approach to asset management. 2. Applying transparent and responsible financial management of City assets that: a. Integrate asset management with budgetary planning; b. Provide for present needs while protecting resources for future generations. 3. Meeting or surpassing legislative requirements for asset management. 4. Ensuring resources and operational capabilities are identified and responsibility ' for asset management is allocated. D. AMAR Funding Strategy 1. AMAR Fund Policy: a. The funding strategy will be based on the following: • An evaluation of available funds in the General Fund, Special Reserve Funds, and the Internal Service Funds; • A comparison of available funds against the requirements of AMAR Plan (based on applicable management studies, best practices, and analysis); • Establishment of a separate AMAR Fund and Policy (e.g. designation, reservation)that best meets the needs of the City. b. When established,the drafting of the actual AMAR Fund Policy will be dependent on Council guidance and direction,and based on the analysis of the completed management studies. 2. The purpose of the Asset Management Fund is to: a. Accumulate earnings to provide a long-term funding source for replacement/rehabilitation of City infrastructure while preserving the principal balance of the Fund; b. Provide financial reserves to respond to natural disasters and other emergencies; ' C. Provide a source for internal loans and liquidity; d. Serve as collateral for City debt issues; e. Asset Management Fund assets may not be used for any purpose without approval of the City Council. Fiscal Year 2015-16 Annual Operating Budget > City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VI. ASSET MANAGEMENT AND REPLACEMENT(AMAR) POLICY E. Replacement Funds 1. Fund 310 Vehicles and Equipment Fund has been established as an Internal Service Fund, for the purpose of accumulating the funds necessary to replace the City's fleet and major equipment. Annually, each department owning an eligible vehicle or piece of large equipment contributes an amount equivalent to the estimated cost to replace the item at the end of its useful life, as summarized in the Vehicle/Equipment Replacement Schedule. Eligible assets funded through the Vehicle/Equipment Replacement Schedule include vehicles and large equipment items that have a useful life longer than three years and cost in excess of$10,000. 2. Fund 325 — Technology Replacement Fund has been established as an Internal Service Fund, for the purpose of accumulating the funds necessary to replace the City's technology infrastructure (hardware and software). Annually, each department owning an eligible technology-related asset contributes an amount equivalent to the estimated cost to replace the item at the end of its useful life,as summarized in the Technology Replacement Schedule. Eligible assets funded through the Technology Replacement Schedule include those technology-related assets that have a useful life longer than three years and cost in excess of$3,000. VII. INVESTMENTS A. Introduction The intent of this Investment Policy is to establish the limits within which the City's Investment Program will be conducted. Investment goals and objectives are defined. Authorized investments and reporting requirements are identified. The monies entrusted to the City Treasurer will be referred to as the "Fund" throughout the remainder of this document. B. Objectives The investment policies and practices of the City of Temecula are based upon State law and prudent money management.The primary goals of these policies include: 1. To protect the principal monies entrusted to this office. Safety of principal is the foremost objective of the City of Temecula. Each investment transaction will seek to ensure that capital losses are avoided, whether from securities default, broker dealer default, or erosion of market value. The City will seek to preserve principal by mitigating the two types of risk(credit risk and market risk). a. Credit Risk - Defined as the risk of loss due to failure of the issuer of a security, will be mitigated by investing only with issuers whose financial strength and reputation can be verified to be the highest as rated by ' nationally known rating agencies, and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City's cash flow. Fiscal Year 2015-16 Annual Operating Budget L City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VII. INVESTMENTS (continued) b. Market Risk -The risk of market value fluctuations due to overall changes in the general level of interest rates, will be mitigated by (a) structuring the portfolio so that securities mature earlier than or concurrent with the timing of major cash outflows, thus eliminating the need to sell securities prior to their maturity; (b) prohibiting the use of leverage and margin accounts; and (c) prohibiting the taking of short positions — that is, selling securities which the City does not own. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable, and must be considered within the context of the overall investment return. 2. To provide sufficient liquidity to meet normal operating and unexpected expenditures. The portfolio will be structured with sufficient liquidity to allow the City to meet expected cash requirements.This will be accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Since all possible cash demands cannot be anticipated, the portfolio will maintain a liquidity buffer and invest primarily in securities with active secondary and resale markets. ' 3. To ensure compliance with all Federal. State, and Local laws governing the investment of monies under the control of the City Treasurer. The legal basis for the City's investment activities is the City of Temecula Municipal Code, Chapter 3.04, Revenue and Finance, Fiscal Provisions Generally and Government Code Sections 5922, 16429.1, 53600 to 53609, and 53630 to 53686, which include parameters for authorized investments, report of investments and investment authority. 4. To generate a maximum amount of investment income within the parameters of prudent risk management and consistent with the above policies. The City's investment portfolio will be designed to attain a market-average rate of return through economic cycles. The market-average rate of return is defined as the average return on three-month U.S. Treasury bills. Whenever possible, and consistent with risk limitations and prudent investment principles, the Treasurer will seek to augment returns above the market average rate of return. The policy will also address risk management because it is such an integral part of the investment policy. To concentrate only on maximizing return would be dangerous. Therefore, policy issues will be directed to: 1) limiting the Fund's exposure to each issue and issuer of debt, and 2) determining a minimum credit requirement that firms must have in order to hold City money. C. Scope This investment policy applies to all funds under the control of the City Treasurer, ' including but not limited to the general fund, special revenue funds, debt service funds, capital improvement funds, trust funds and bond proceeds in the custody of the Fiscal Year 2015-16 Annual Operating Budget 1 City of Temecula Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES VII. INVESTMENTS (continued) Treasurer and any other funds under his/her control. California Government Code Section 53601(1) permits money from bond proceeds, obligations under a lease, installment sales or other agreements to be invested in any security that meets the statutory provisions governing the issuance of the bond or other agreements made by the issuing agency. Furthermore, California Government Code Section 5922(d) provides that notwithstanding any other provision of law, proceeds of bonds and any moneys set aside and pledged to secure payment of the bonds or certain other contracts specified in Section 5922, may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds or the contract. D. Investment Authority The City of Temecula Municipal Code delegates to the City Treasurer the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping. The City Treasurer is responsible for daily management of the investment program, including: 1. Establishing procedures for operation consistent with the investment policy; ' 2. Approving daily investment transactions; 3. Developing projections of the City's cash requirements for operating needs; 4. Reviewing the liquidity position of the investment portfolio; 5. Ensuring that the City s cash position is consistent with operating requirements; 6. Preparing appropriate investment reports; 7. Developing, implementing and monitoring controls over investments; 8. Developing record keeping for investment transactions. The City Treasurer may delegate investment authority to qualified and competent officials and City employees such as the Revenue Manager. All persons authorized to make investment decisions on behalf of the City are trustees of the public funds and therefore fiduciaries subject to the following prudent investor standard as defined in California Government Code Section 53600.3: When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee will act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. Fiscal Year 2015-16 Annual Operating Budget City of Temecula CFiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VII. INVESTMENTS (continued) E. Safekeeping of Securities To protect against potential losses by collapse of individual securities dealers, all securities owned by the City, including collateral on repurchase agreements, will be held in safekeeping by a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. All securities will be received and delivered using standard delivery versus payment procedures (i.e., the City's safekeeping agent will only release payment for a security after the security has been properly delivered). This section is intended to comply with Government Code Sections 53601 and 53608. F. Reporting The City Treasurer will render a monthly report to the City Manager and City Council showing the type of investment, issuing institution, selling institution, date of maturity, par and dollar amount of deposit, current market value for all securities, return on the City's investment portfolio expressed as an annual percentage rate, yield to maturity, cash flow information demonstrating that the City can meet its upcoming financial obligations, and such data as may be required by the City Council. The report will also ' state its relationship to this statement of investment policy, as directed under the Code. The Treasurer will at least annually submit a recommended updated Investment Policy to be reviewed and approved by the City Council.The City's investment reporting policy meets or exceeds the requirements of Section 53646 of the California Government Code. G. Qualified Dealers The City will transact investments only with banks, savings and loans, state-licensed investment security broker-dealers, the State of California Local Agency Investment Fund, or brokerage firms designated as primary government dealers by, and regularly reporting to, the New York Federal Reserve Bank. Investment staff will investigate dealers who wish to do business with the City in order to determine if they are adequately capitalized, market securities appropriate to the City's needs, and are recommended by managers of portfolios similar to the City's. The City's Broker/Dealer Questionnaire will be used in this investigation. The City will, at least annually, send a copy of the current investment policy to all dealers approved to do business with the City. Confirmation of receipt of this policy will be considered as evidence that the dealer understands the City's investment policies, and intends to show the City only appropriate investments. H. Authorized Investments Investments will be made in the context of the "prudent investor" rule,which states: Investments will be made with judgment and care, ' under circumstances then prevailing, which persons of prudence,discretion,and intelligence exercise in the Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 Annual Operating Budget BUDGET AND FISCAL POLICIES VII. INVESTMENTS (continued) management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The City is further governed by the California Government Code, Sections 5922, 16429.1, and 53600 et seq. Within the context of these limitations, the following investments are authorized,as further limited herein: 1. United States Treasury Bills. Bonds. and Notes, or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no limitation as to the percentage of the portfolio that can be invested in this category. Maturity is not to exceed the projected dates of the City's cash needs or five years,whichever is less. 2. Obligations issued by the Federal Farm Credit Bank System (FFCB), the Federal Home Loan Bank Board (FHLB). the Federal Home Loan Mortgage Corporation (FHLMC), the Federal National Mortgage Association IFNMAI. and other United States agency obligations with maturities of five years or less. Although there is no percentage limitation on the dollar amount that can be invested in these issues, the "prudent investor" rule will apply for a single agency name. Maturity is not to exceed the projected dates of the City's cash needs or five years, whichever is less. 3. Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as banker's acceptances. Banker's acceptances purchased may not exceed 180 days to maturity or 40% of the market value of the portfolio. No more than 30% of the market value of the portfolio may be invested in banker's acceptances issued by any one bank. 4. Commercial paper ranking of the highest letter and number rating by a nationally recognized statistical rating organization (NRSRO), and issued by a domestic corporation having assets in excess of$500.000.000 and having an "A-1" or better rating on its long-term debentures as Provided by a NRSRO. Purchases of eligible commercial paper may not exceed 15% of the market value of the portfolio. No more than 10% of the market value of the portfolio may be invested in commercial paper issued by any one corporation. The City may invest in no more than 10% of a single corporation. The City may invest in no more than 10% of a single corporation's commercial paper. Maturity is not to exceed 180 days. 5. Negotiable certificates of deposit issued by nationally or state-chartered banks or state or federal savings and loan associations. Negotiable certificates of deposit (NCDs) differ from other certificates of deposit by their deposit liquidity. They are issued against funds deposited for specified periods of time and earn specified or 1 Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VII. INVESTMENTS (continued) variable rates of interest. NCDs are traded actively in secondary markets. When feasible, an independent trading service will be used as part of the evaluation process. Issuers must be rated "B" or better by Thomson Bank Watch or equivalent rating service, or rated A-1 for deposits by Standard & Poors,or P-1 for deposits by Moodys or comparably rated by a national rating agency. Transactions in NCDs will not collectively exceed 30% of the total portfolio in effect immediately after any such investment is made. 6. Repurchase Agreements. The City may invest in repurchase agreements with banks and dealers with which the City has entered into a master repurchase agreement which specifies terms and conditions of repurchase agreements. Transactions will be limited to the primary dealers and the top banking institutions according to the rating agency based on liquidity, profitability, and financial strength. The maturity of repurchase agreements will not exceed thirty days. The market value of securities used as collateral for repurchase agreements will be monitored daily by the investment staff and will not be allowed to fall below 102%of the value of the repurchase agreement plus the value of collateral in excess of the value of the repurchase agreement. In order to conform with provisions of the Federal Bankruptcy Code which provide for the liquidation of ' securities held as collateral for repurchase agreements, the only securities acceptable as collateral will be certificates of deposit, eligible bankers' acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States. No more than 50% of the portfolio may be invested in repurchase agreements, and a "perfected security interest" will always be maintained in the securities subject to a repurchase agreement. 7. Local Agency Investment Fund. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer for the benefit of local agencies up to the maximum permitted by State law. 8. Time Deposits. As to the deposits of non-surplus funds, the City may invest in non-negotiable time deposits collateralized in accordance with the California Government Code (including, but not limited to, entering into a contract with the depository institution pursuant to California Government Code Section 53649) in those banks and savings and loan associations that meet the requirements for investment in negotiable certificates of deposit.Since time deposits are not liquid, no more than 15% of the portfolio may be invested in this category. The depository institution should have been in existence for at least five years. The City may waive the first $100,000 of collateral security for such deposits if the institution is insured pursuant to federal law. In order to secure the uninsured portions of such deposits, an institution will maintain at least 10% in excess of the total amount deposited. Real estate ' mortgages may not be accepted as collateral.The maximum term for deposits will Fiscal Year 2015-16 Annual Operating Budget iL City of Temecula Fiscal year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VII. INVESTMENTS (continued) be one year. In general, the depository institution must have a minimum 6% net worth to assets ratio or the minimum ratio established by the Comptroller of the Currency. The depository institution's operation must have been profitable during their last reporting period. 9. Money Market Funds. The City may invest in money market funds that invest solely in U.S. Treasuries, obligations of the U.S. Treasury, and repurchase agreements relating to such treasury obligations. To be eligible, the money market fund must have attained the highest ranking available as evaluated by a nationally recognized rating service and retained an investment advisor with not less than five years' experience and that is registered with the SEC, and which advisor has assets under management in excess of$500 million. Except as otherwise noted, this list of authorized investments is intended to apply to the investment of all operating and surplus funds. The investment of bond proceeds will be governed by the permitted investments as specified in the official statement for each bond issue. ' I. Ineligible Investments Investments not described herein, including, but not limited to, reverse repurchase agreements, mutual funds (other than money market funds), zero coupon bonds, inverse floaters, mortgage-derived securities, common stocks and corporate notes and bonds are prohibited from use in the City's investment portfolio. J. Swapping of Securities A swap is the movement from one security to another and may be done for a variety of reasons, such as to increase yield, lengthen or shorten maturities,to take a profit, or to increase investment quality. The purchase transaction and the sale transaction must each be recorded separately and any losses or gains on the sale must be recorded. K. Portfolio Adjustments Should an investment percentage-of-portfolio limitation be exceeded due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer will consider reconstructing the portfolio basing his or her decision, in part, on the expected length of time the portfolio will be unbalanced. L. Policy Review This investment policy will be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. The City Council will be responsible for maintaining guidance over this investment policy to ensure that the City can adapt ' readily to changing market conditions, and will approve any modification to the investment policy prior to implementation. Fiscal Year 2015-16 Annual Operating Budget City of Temecula _ (M� Fiscal year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VII. INVESTMENTS (continued) 71 M. Ethics and Conflict of Interest Officers and employees involved in the investment process will refrain from personal business activity that conflicts with the proper execution of the investment program or impairs their ability to make impartial investment decisions. In addition, no funds will be invested in negotiable certificates of deposit issued by, or non-negotiable time deposits under contract with a State or Federal credit union if a member of the City Council or any person with investment decision making authority in the administrative office, manager's office, budget office, auditor-controller's office, or treasurer's office of the City also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the State or Federal credit union issuing the negotiable certificates of deposit or in which the non-negotiable time deposit is proposed to be deposited. Additionally,officers and staff involved in the investment of public funds are required to annually file a Fair Political Practices Commission Statement of Economic Interest form. Fiscal Year 2015-16 Annual Operating Budget 1 ` City of Temecula Fiscal Year 2015-16 ' BUDGET AND FISCAL POLICIES Annual Operating Budget VIII. CAPITAL FINANCING AND DEBT MANAGEMENT A. Capital Financing 1. The City will consider the use of debt financing only for one-time capital improvement projects and only under the following circumstances: a. When the project's useful life will exceed the term of the financing; b. When project revenues or specific resources will be sufficient to service the long-term debt. 2. Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. The issuance of short-term instruments such as revenue, tax or bond anticipation notes is excluded from this limitation. (See Investment Policy) 3. Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes or developer agreements when benefits can be specifically attributed to users of the facility. Accordingly, development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community ' facilities. 4. Transportation related impact fees are a major funding source in financing transportation system improvements. However, revenues from these fees are subject to significant fluctuation based on the rate of new development. Accordingly, the following guidelines will be followed in designing and building projects funded with transportation impact fees: a. The availability of transportation impact fees in funding a specific project will be analyzed on a case-by-case basis as plans and specification or contract awards are submitted for City Manager or Council approval. b. If adequate funds are not available at that time, the Council will make one of two determinations: • Defer the project until funds are available; • Based on the high-priority of the project, advance funds from the General Fund, which will be reimbursed as soon as funds become available. Repayment of General Fund advances will be the first use of transportation impact fee funds when they become available. 5. The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in funding capital improvements: a. Factors Favoring Pay-As-You-Go Financing: • Current revenues and adequate fund balances are available or project phasing can be accomplished; ' • Existing debt levels adversely affect the City's credit rating; • Market conditions are unstable or present difficulties in marketing. Fiscal Year 2015-16 Annual Operating Budget i �Mr City of Te mecula C(eZ Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VIII. CAPITAL FINANCING AND DEBT MANAGEMENT b. Factors Favoring Long Term Financing: • Revenues available for debt service are deemed sufficient and reliable so that long-term financings can be marketed with investment grade credit ratings; • The project securing the financing is of the type,which will support an investment grade credit rating; • Market conditions present favorable interest rates and demand for City financings; • A project is mandated by state or federal requirements, and resources are insufficient or unavailable; • The project is immediately required to meet or relieve capacity needs and current resources are insufficient or unavailable. B. Debt Management 1. The City will not obligate the General Fund to secure long-term financings except when marketability can be significantly enhanced. ' 2. An internal feasibility analysis will be prepared for each long-term financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt service. 3. The City will generally conduct financings on a competitive basis. However, negotiated financings may be used due to market volatility or the use of an unusual or complex financing or security structure. 4. The City will seek an investment grade rating (Baa/BBB or greater) on any direct debt and will seek credit enhancements such as letters of credit or insurance when necessary for marketing purposes,availability and cost-effectiveness. 5. The City will monitor all forms of debt annually coincident with the City's Financial Strategic Plan preparation and review process and report concerns and remedies, if needed,to the Council. 6. The City will diligently monitor its compliance with bond covenants and ensure its adherence to federal arbitrage regulations. 7. The City will maintain good, ongoing communications with bond rating agencies about its financial condition.The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement). 1 Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VIII. CAPITAL FINANCING AND DEBT MANAGEMENT C. Debt Capacity 1. General Purpose Debt Capacity. The City will carefully monitor its levels of general-purpose debt. Because our general purpose debt capacity is limited, it is important that we only use general purpose debt financing for high-priority projects where we cannot reasonably use other financing methods for two key reasons: a. Funds borrowed for a project today are not available to fund other projects tomorrow; b. Funds committed for debt repayment today are not available to fund operations in the future. In evaluating debt capacity, general-purpose annual debt service payments should generally not exceed 10% of General Fund revenues; and in no case should they exceed 15%. Further, direct debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement outlays will be funded from long-term financings. D. Independent Disclosure Counsel The following criteria will be used on a case-by-case basis in determining whether the City should retain the services of an independent disclosure counsel in conjunction with specific project financings: 1. The City will generally not retain the services of an independent disclosure counsel when all of the following circumstances are present: a. The revenue source for repayment is under the management or control of the City, such as general obligation bands, revenue bands, lease-revenue bonds or certificates of participation; b. The bonds will be rated or insured. 2. The City will consider retaining the services of an independent disclosure counsel when one or more of following circumstances are present: a. The financing will be negotiated, and the underwriter has not separately engaged an underwriter's counsel for disclosure purposes; b. The revenue source for repayment is not under the management or control of the City, such as land-based assessment districts, tax allocation bonds or conduit financings; C. The bonds will not be rated or insured; d. The City's financial advisor, bond counsel or underwriter recommends that the City retain an independent disclosure counsel based on the circumstances of the financing. 1 Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VIII. CAPITAL FINANCING AND DEBT MANAGEMENT E. Land-Based Financings 1. Public Purpose. There will be a clearly articulated public purpose in forming an assessment or special tax district in financing public infrastructure improvements. This should include a finding by the Council as to why this form of financing is preferred over other funding options such as impact fees, reimbursement agreements or direct developer responsibility for the improvements. 2. Eligible Improvements. Except as otherwise determined by the Council when proceedings for district formation are commenced, preference in financing public improvements through a special tax district will be given for those public improvements that help achieve clearly identified community facility and infrastructure goals in accordance with adopted facility and infrastructure plans as set forth in key policy documents such as the General Plan, Specific Plan, Facility or Infrastructure Master Plans, or Capital Improvement Plan. Such improvements include study,design,construction and/or acquisition of: a. Public safety facilities; b. Major transportation system improvements, such as freeway interchanges; ' bridges; intersection improvements; construction of new or widened arterial or collector streets (including related landscaping and lighting); sidewalks and other pedestrian paths;transit facilities;and bike paths; C. Storm drainage,creek protection and flood protection improvements; d. Parks,trails,community centers and other recreational facilities; e. Open space; I. Cultural and social service facilities; g. Other governmental facilities and improvements such as offices, information technology systems and telecommunication systems. 3. Active Role. Even though land-based financings may be a limited obligation of the City, we will play an active role in managing the district. This means that the City will select and retain the financing team, including the financial advisor, bond counsel, trustee, appraiser, disclosure counsel, assessment engineer and underwriter. Any costs incurred by the City in retaining these services will generally be the responsibility of the property owners or developer, and will be advanced via a deposit when an application is filed; or will be paid on a contingency fee basis from the proceeds from the bonds. 4. Credit Quality. When a developer requests a district, the City will carefully evaluate the applicant's financial plan and ability to carry the project, including the payment of assessments and special taxes during build-out. This may include detailed background, credit and lender checks, and the preparation of ' independent appraisal reports and market absorption studies. For districts where one property owner accounts for more than 25% of the annual debt service obligation,a letter of credit further securing the financing may be required. Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VIII. CAPITAL FINANCING AND DEBT MANAGEMENT S. Reserve Fund. A reserve fund should be established in the lesser amount of: the maximum annual debt service; 125% of the annual average debt service; or 10% of the bond proceeds. 6. Value-to-Debt Ratios. The minimum value- to-date ratio should generally be 4:1. This means the value of the property in the district, with the public improvements, should be at least four times the amount of the assessment or special tax debt. In special circumstances, after conferring and receiving the concurrence of the City's financial advisor and bond counsel that a lower value-to-debt ratio is financially prudent under the circumstances; the City may consider allowing a value-to-debt ratio of 3:1. The Council should make special findings in this case. 7. Appraisal Methodology. Determination of value of property in the district will be based upon the full cash value as shown on the ad valorem assessment roll or upon an appraisal by an independent Member Appraisal Institute (MAI). The definitions, standards and assumptions to be used for appraisals will be determined by the City on a case-by-case basis, with input from City consultants and district applicants, and by reference to relevant materials and information promulgated by the State of California, including the Appraisal Standards for Land Secured Financings prepared by the California Debt and Investment Advisory Commission. 8. Capitalized Interest During Construction. Decisions to capitalize interest will be made on case-by-case basis, with the intent that if allowed, it should improve the credit quality of the bonds and reduce borrowing costs, benefiting both current and future property owners. 9. Maximum Burden. Annual assessments (or special taxes in the case of Mello-Roos or similar districts) should generally not exceed 1% of the sales price of the property; and total property taxes, special assessments and special taxes payments collected on the tax roll should generally not exceed 2%. 10. Benefit Apportionment. Assessments and special taxes will be apportioned according to a formula that is clear, understandable, equitable and reasonably related to the benefit received by, or burden attributed to, each parcel with respect to its financed improvement. Any annual escalation factor should generally not exceed 2%. 11. Special Tax District Administration. In the case of Mello-Roos or similar special tax districts, the total maximum annual tax should not exceed 110% of annual debt service. The rate and method of apportionment should include a back-up tax in the event of significant changes from the initial development plan, and should include procedures for prepayments. ' 12. Foreclosure Covenants. In managing administrative costs, the City will establish minimum delinquency amounts per owner, and for the district as a whole, on a case-by-case basis before initiating foreclosure proceedings. Fiscal Year 2015-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VIII. CAPITAL FINANCING AND DEBT MANAGEMENT 13. Disclosure to Bondholders. In general, each property owner who accounts for more than 10% of the annual debt service or bonded indebtedness must provide ongoing disclosure information annually as described under SEC Rule 15(c)-12. 14. Disclosure to Prospective Purchasers. Full disclosure about outstanding balances and annual payments should be made by the seller to prospective buyers at the time that the buyer bids on the property. It should not be deferred to after the buyer has made the decision to purchase. When appropriate, applicants or property owners may be required to provide the City with a disclosure plan. F. Conduit Financings 1. The City will consider requests for conduit financing on a case-by-case basis using the following criteria: a. The City's bond counsel will review the terms of the financing, and render an opinion that there will be no liability to the City in issuing the bonds on behalf of the applicant; b. There is a clearly articulated public purpose in providing the conduit financing; ' C. The applicant is capable of achieving this public purpose. 2. This means that the review of requests for conduit financing will generally be a two-step process: a. First asking the Council if they are interested in considering the request,and establishing the ground rules for evaluating it; b. And then returning with the results of this evaluation, and recommending approval of appropriate financing documents if warranted. This two-step approach ensures that the issues are clear for both the City and applicant, and that key policy questions are answered. 3. The work scope necessary to address these issues will vary from request to request, and will have to be determined on a case-by-case basis. Additionally, the City should generally be fully reimbursed for our costs in evaluating the request; however,this should also be determined on a case-by-case basis. G. Refinancings 1. General Guidelines. Periodic reviews of all outstanding debt will be undertaken to determine refinancing opportunities. Refinancings will be considered (within federal tax law constraints) under the following conditions: a. There is a net economic benefit; b. It is needed to modernize covenants that are adversely affecting the City's financial position or operations ' C. The City wants to reduce the principal outstanding in order to achieve future debt service savings, and it has available working capital to do so from other sources. Fiscal Year 2015-16 Annual Operating Budget � � Fiscal of Temecula e " 'l cal Year 2015-16 ' Annual Operating Budget BUDGET AND FISCAL POLICIES VIII. CAPITAL FINANCING AND DEBT MANAGEMENT 2. Standards for Economic Savings. In general, refinancings for economic savings will be undertaken whenever net present value savings of at least five percent (S%)of the refunded debt can be achieved. a. Refinancings that produce net present value savings of less than five percent will be considered on a case-by-case basis, provided that the present value savings are at least three percent(3%)of the refunded debt. b. Refinancings with savings of less than three percent (3%), or with negative savings, will not be considered unless there is a compelling public policy objective. IX. INTERFUND TRANSFERS AND LOANS POLICY A. Establishment of Various Funds The City has established various funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds,with its own revenue sources,expenditures and fund equity. ' B. Transfer between Funds Any transfers between funds for operating purposes are set forth in the budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from interfund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources. In summary, interfund transfers result in a change in fund equity; interfund borrowings do not,as the intent is to repay the loan in the near term. C. Interfund Loans Interfund loans may be appropriate whenever the loan is expected to be repaid within the immediate future. The most common use of interfund loans is for grant programs, where costs are incurred before drawdowns are initiated and received. Receipt of funds is typically received shortly after the request for funds has been made. X. APPROPRIATIONS LIMITATION A. Adopting a Resolution The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article X111-B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit. B. Supporting Documentation Available for Review The supporting documentation used in calculating the City's appropriations limit and ' projected appropriations subject to the limit will be available for public and Council review at least fifteen days before Council consideration of a resolution to adopt an appropriations limit. The Council will generally consider this resolution in connection with final approval of the budget. Fiscal Year ZO1S-16 Annual Operating Budget City of Temecula Fiscal Year 2015-16 A ' nnual Operating Budget BUDGET AND FISCAL POLICIES X. APPROPRIATIONS LIMITATION (continued) C. Calculating Appropriations The City will strive to develop revenue sources, both new and existing, which are considered non-tax proceeds, in calculating its appropriations subject to limitation. D. Review of User Fees and Charges The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any that is being provided by the General Fund. An annual inflator is automatically calculated each year based on changes in the Consumer Price Index. E. Support of Legislation or Initiatives The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council. F. Voter Approval to Amend Appropriation Limit ' The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are in excess of allowable limits. Fiscal Year 2015-16 Annual Operating Budget 1 � City of Temecula Fiscal Year 2015-16 ' Mid-Year Adjustments EXHIBIT E Salary Schedule B 1 ' Fiscal Year 2015-16 Mid-Year Budget Adjustments City of Temecula Salary Schedule 8 Effective February 9,2016 MCP Only Class Family Level Title 30 15 20 25 30 35 40 45 50 55 60 65 70 75 80 ADMIN 4 Executive Assistant $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 ADMIN 4 Senior Administrative Assistant $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 ADMIN 3 Administrative Assistant $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 ADMIN 2 Senior Office Specialist $3,541 $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 ADMIN 1 Office Specialist II $3,208 $3,288 $3,371 $3,455 $3,541 $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 ADMIN 1 Office Specialist 1 $3,0541 $3,1301 $3,208 $3,2981 $3,3711 $3,455 $3,5411 $3,630 $3,720 $3,8131 $3,9091 $4,007 $4,1071 $4,2091 $4,315 ANALYST 7 Principal Management Analyst $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 ANALYST 6 Senior Management Analyst $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 ANALYST 5 Management Analyst $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $504 ANALYST 4 Management Assistant $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,8821 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 ANALYST 3 Management Aide IF $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 ANALYST 2 Management Aide ll $3,371 $3,455 $3,541 $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 ANALYST 1 Management Aide l $3,05,11 $3,1301 $3,208 $3,2881 $3,371 $3,455 $3,5411 $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 ANALYST 1 Intern $1,647 $1,688 $1,730 $1,774 $1,818 $1,863 $1,910 $1,958 $2,007 $2,057 $2,108 CD B Director of Community Development $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 $13,435 $13,771 $14,115 $14,468 $14,830 $15,200 $15,580 $15,970 $16,369 CD-8LDG 7 Building Official $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 CD-BLDG 4 Field Supervisor-Building $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,8291 $9,050 $9,276 $9,508 CD-BLDG 4 Plan Checker $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 CD-BLDG 3 Senior Building Inspector $6,405 $6,565 $6,7291 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 CD-BLDG 2 Building Inspector ll $5,803 $5,9481 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 CD-BLDG 1 Building Inspector l $5,257 $5,3991 $5,523 $5,661 $5,9031 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 CD-CODE 4 Field Supervisor-Code Enforcement $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,0701 $7,247 $7,428 CD-CODE 3 Senior Code Enforcement Officer $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 CD-CODE 2 Code Enforcement Officer 11 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,6611 $5,803 $5,948 $6,096 CD-CODE 1 Code Enforcement Officer I $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 CD-PLAN 7 Planning Manager $8,4041 58,6141 $8,829 $9,0501 $9,2761 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 CD-PLAN 6 Principal Planner $7,614 $7,&Xl $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 CD-PLAN 5 Senior Planner $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 CD-PLAN 4 Associate Planner II $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 CD-PLAN 3 Associate Planner 1 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 CD-PLAN 2 Assistant Planner $5,129 $5,257 $5,388 $5,523 55,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 CD-PLAN 1 Planning Technician $4,646 $4,762 $4,882 $5,004 $5,1291 $5,2571 $5,3981 $5,5231 $5,6611 $5,8031 $5,948 City of Temecula Salary Schedule 6 Effective February 9,2016 MCP Only Class Family Level Title 10 15 20 25 30 35 40 45 50 55 60 65 70 IS 80 CD-SVGS 4 CommDev Processing Supervisor $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 CD-SVCS 3 Senior CommDev Services Technician $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 CD-SVGS 2 CommDev Services Technician II $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 CD-SVGS 1 CommDev Services Technician l $4,1071 $4,2091 $4,315 $4,4221 $4,5331 $4,646 $4,7621 $4,8821 $5,004 $S,1291 $5,257 CLERK 8 City Clerk $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,1711$12,4761 $12,788 CLERK 7 Deputy City Clerk $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,6141 $8,829 CLERK 6 Records Manager $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 CLERK 4 Records Supervisor $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 CLERK 3 Senior Records Coordinator $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 CLERK 2 Records Coordinator $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 CLERK 1 Records Technician $3,2881 $3,3711 $3,455 $3,5411 $3,6301 $3,720 $3,813 $3,909 $4,007 $4,1071 $4,209 CM 8 Assistant City Manager $12,476 $12,788 $13,107 $13,435 $13,771 $14,115 $14,46111$14,8301$15,200 $15,580 $15,970 $16,369 $16,778 $17,198 $17,628 CM 7 Deputy City Manager $11,302 $11,585 $11,875 $12,171 $12,476 $12,798 $13,107 $13,435 $13,771 $14,115 $14,468 $14,830 $15,2001$15,5801 $15,970 CM 6 Assistant to the City Manager $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 CM 5 Economic Development Manager $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 CSD 8 Director of Community Services $11,5851$11,8751$12,171 $12,4761$12,788 $13,107 $13,435 $13,771 $14,115 $14,468 $14,830 $15,200 $15,580 $15,970 $16,369 CSD 7 Assistant Director of Community Services $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 CSD 6 Community Services Superintendent $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 CSD 5 Community Services Manager $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,9991 $8,1991 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 CSD 4 Community Services Supervisor II $5,129 $5,257 $5,398 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 C50 4 Community Services Supervisor 1 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 C50 3 Community Services Coordinator 11 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 CSD 3 Community Services Coordinator l $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 CSD 2 Community Services Specialist II $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 CSD 2 Community Services Specialist l $3,6301 $3,7201 $3,813 $3,909 $4,0071 $4,107 $4,209 $4,315 $4,422 $4,5331 $4,646 C5D 1 Community Services Assistant $3,288 $3,371 $3,455 $3,541 $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 CSD-AQ 4 Aquatics Supervisor 11 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 CSD-AQ 4 Aquatics Supervisor l $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,903 $5,948 $6,096 $6,249 $6,405 CSD-AQ 3 Aquatics Coordinator $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,398 $5,523 $5,661 $5,803 CSD-AQ 2 Lead Lifeguard $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 CSD-AQ 1 Senior Lifeguard $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 City of Temecula Salary Schedule 8 Effective February 9,2016 MCP Only Class Family Level Title 30 15 20 25 30 35 40 45 50 55 60 65 70 75 80 CSD-AQ 1 Lifeguard $3,541 $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 CSD-RANGE 4 Supervising Park Ranger $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 CSD-RANGE 3 Park Ranger III $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 CSD-RANGE 2 Park Ranger II $4,3151 $4,4221 $4,533 $4,6461 $4,7621 $4,882 $5,004 $5,129 $5,257 $5,3881 $5,523 CSD-RANGE 1 Park Ranger 1 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 CSD-THEATI 3 Theater Technical Coordinator 11 $4,422 $4,533 $4,646 $4,762 $4,882 SS,OD4j $5,129 $5,2571 $5,388 $5,523 $5,661 CSD-THEATI 3 Theater Technical Coordinator l $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 CSD-THEATI 2 Theater Technical Specialist II $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 CSD-THEATI 2 Theater Technical Specialist l $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 CSD-THEATI 1 Theater Technical Assistant $3,288 $3,371 $3,455 $3,541 $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 FIN 8 Director of Finance $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 $13,435 $13,771 $14,115 $14,468 $14,830 $15,200 $15,580 $15,970 $16,369 FIN 7 Assistant Director of Finance $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 FIN 6 Fiscal Services Manager $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 FIN-ACCrG 4 Senior Accountant $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 FIN-ACCTG 3 Accountant II $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 FIN-ACCTG 3 Accountant I $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 FIN-ACCrSU 4 Accounting Support Supervisor $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,8981 $7,0701 $7,247 $7,428 $7,614 $7,804 $7,999 FIN-ACCTSU 3 Senior Accounting Technician $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 FIN-ACCTSU 2 Accounting Technician 11 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 FIN-ACCT5U 2 Accounting Technician l $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 FIN-ACCTSU 1 Accounting Assistant $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 FIN-ACCTSU 1 Cashier $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 FIN-BUSLIC 4 Business License Supervisor $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 FIN-BUSLIC 3 Senior Business License Technician $4,9821 $5,0041 $5,129 $5,2571 $5,3981 $5,523 $5,6611 $5,8031 $5,948 $6,096 $6,249 FIN-BUSLIC 2 Business License Technician $4,422 54,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 FIN-BUSLIC 1 Business Ucense Assistant $4,0071 $4,1071 $4,209 $4,315 $4,422t $4,533 $4,646 $4,7621 $4,882 $5,004 $5,129 FIN-P/R 5 Payroll Manager $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 City of Temecula Salary Schedule B Effective February 9,2016 MCP Only Clan Family Level Title 30 15 20 25 30 35 40 45 50 55 80 65 70 75 80 FIN-P/R 4 Payroll Administrator $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 FIN-P/R 4 Payroll Supervisor $5,388 $5,523 $5,661 $5,603 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 FIN-P/R 3 Senior Payroll Coordinator $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,0% $6,249 $6,405 $6,565 $6,729 $6,898 FIN-P/R 2 Payroll Coordinator $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 FIN-P/R 1 Payroll Technician $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 FIN-PURCH 5 Purchasing Manager $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 FIN-PURCH 4 Purchasing Supervisor $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 FIN-PURCH 3 Senior Buyer $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 FIN-PURCH 2 Buyer ll $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 FIN-PURCH 2 Buyer $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 FIN-PURCH 1 Purchasing Assistant $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 FIRE 4 Field Supervisor-Fire $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 FIRE 4 Senior Fire Inspector $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 FIRE 2 Fire Inspector II $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,8041 $7,9991 $8,199 $8,4041 $8,614 FIRE 1 Fire Inspector 1 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 HR 8 Director of HR/Risk Management $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 $13,435 $13,771 $14,115 $14,468 HR 7 Assistant Directorof HR/Risk Management $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 HR 6 HR Manager $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 HR 6 Risk Manager $7,4281 $7,6141 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 HR 4 HR Supervisor $5,523 $5,661 $5,803 $5,9481 $6,0961 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 HR 3 Senior HR Technician $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,8031 $5,9481 $6,096 $6,2491 $6,4051 $6,565 $6,729 $6,898 $7,070 HR 2 HR Technician ll $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,2571 $5,3881 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 HR 2 HR Technician $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,0% HR 1 HR Assistant $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 IT 8 Director of IT/Support Services $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 $13,435 $13,7711$14,115 $14,468 IT 7 Assistant Director of IT/Support Services $8,8291 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,171 $12,476 IT 6 IT Manager $7,999 $8,199 $8,404 $8,614 $8,8291 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 IT 5 IT Administrator $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,2761 $9,508 $9,746 $9,990 $10,239 IT 4 IT Supervisor $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 IT 3 Senior IT Specialist $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,4281 $7,614 IT 2 IT Specialist 11 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 IT 2 IT Specialist $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 IT 1 IT Technician 11 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,9031 $5,948 City of Temecula Salary Schedule 8 Effective February 9,2016 MCP Only Class Family Level Title 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 IT 1 IT Technician $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 PW 8 Director of Public Works/City Engineer $11,875 $12,171 $12,476 $12,788 $13,107 $13,435 $13,771 $14,115 $14,468 $14,830 $15,200 $15,580 $15,970 $16,369 $16,778 PW-CUST 2 Custodian ll $2,7661 $2,8361 $2,906 $2,9791 $3,0541 $3,130 $3,2081 $3,2881 $3,371 $3,455 $3,541 PW-CUST 1 Custodian 1 $2,506 $2,569 $2,633 $2,699 $2,7661 $2,836 $2,906 $2,979 $3,054 $3,130 $3,208 PW-ENG 7 Engineering Manager $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 $13,435 $13,771 $14,115 $14,468 PW-ENG 6 Principal Civil Engineer $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 $12,171 $12,476 $12,788 $13,107 PW-ENG 5 Senior Civil Engineer $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 $11,027 $11,302 $11,585 $11,875 PW-ENG 4 Associate Civil Engineer $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 PW-ENG 4 Associate Engineer ll $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 PW-ENG 3 Associate Engineer 1 $6,405 $6,565 $6,729 $6,898 $7,070 $7,2471 $7,428 $7,6141 $7,8041 $7,999 $8,199 PW-ENG 2 Assistant Engineer II $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 PW-ENG 2 Assistant Engineer 1 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 PW-ENG 1 Engineering Technician ll $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 PW-ENG 1 Engineering Technician l $4,762 $4,882 $5,004 $5,129 $5,2571 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 PW-INSP 4 Construction Manager $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 PW-INSP 4 Supervising PW Inspector $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,7291 $6,898 $7,070 $7,247 $7,428 PW-INSP 3 Senior PW Inspector $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 PW-INSP 2 PW Inspector It $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 PW-INSP 1 PW Inspector 1 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,157 $5,388 $5,523 PW-LANDS 5 Maintenance Supervisor-Landscape $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 PW-LANDS 4 field Supervisor-Landscape $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 1 PW-LANDS 3 Senior Landscape Inspector $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 PW-LANDS 2 Landscape Inspector 11 $5,01341 $5,1291 $5,257 $5,388 $5,523 $5,661 $5,8031 $5,948 $6,096 $6,249 $6,4051 1 PW-LANDS 1 Landscape Inspector l $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 PW-MAINT 7 Maintenance Manager $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 PW-MAINT 6 Maintenance Superintendent $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,5081 $9,746 PW-MAINT 5 Maintenance Supervisor $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 PW-MAINT 4 Field Supervisor-Maintenance $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 55-8031 $5,948 $6,096 $6,249 PW-MAINT 3 Lead Maintenance Worker $4,422 $4,533 $4,liftj $4,7621 $4,8821 $5,004 $5,129 $5,2571 $5,388 $5,523 $5,661 City of Temecula Salary Schedule 9 Effective February 9,2016 MCP Only Class Family Level Title 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 PW-MAINT 2 Maintenance Worker 11 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 PW-MAINT 1 Maintenance Worker l $3,630 $3,720 $3,813 $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 PW-FACILITI 4 Field Supervisor-Facilities $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,565 $6,729 PW-FACILITI 3 Lead Maintenance Worker-Facilities $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 $5,661 $5,803 $5,948 $6,096 PW-FACILITI 2 Maintenance Worker 11-Facilities $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 $5,129 $5,257 $5,388 $5,523 PW-FACILITI 1 Maintenance Worker I-Facilities $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $4,762 $4,882 $5,004 PW-51G 5 Maintenance Supervisor Signal $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 $9,050 $9,276 $9,508 $9,746 $9,990 $10,239 $10,495 $10,758 PW-SIG 4 Field Supervisor-Signal $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 $8,199 $8,404 $8,614 $8,829 PW-SIG 3 Senior Signal Technician $6,249 $6,405 $6,565 $6,729 $6,898 $7,070 $7,247 $7,428 $7,614 $7,804 $7,999 PW-SIG 2 Signal Technician II $5,661 $5,803 $5,948 $6,096 $6,249 $6,405 $6,5651 $6,7291 $6,898 $7,070 $7,247 PW-SIG 2 Signal Technician 1 $5,3881 $5,5231 $5,661 $5,803 $5,9481 $6,096 $6,249 $6,405;$4,762 L$3,630 $6,898 SS 4 Support Services Supervisor $3,909 $4,007 $4,107 $4,209 $4,315 $4,422 $4,533 $4,646 $5,004 SS 3 Senior Support Services Technician $3,541 $3,630 $3,720 $3,813 $3909 $4OD7 $4,107 $4,209 $4,533 SS 2 Support Services Technician $3,208 $3288 $3,371 $3,455 $3,541 $3,630 $3,720 $3,813 $4,107 SS 1 Support Services Assistant $2,906 $2,979 $3,054 $3,130 $3,208 $3,288 $3,371 $3,455 $3,720