Loading...
HomeMy WebLinkAboutStaff Report 2311-2233CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, February 12, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     11.Discuss the FY 2024 Mid-Year Budget Review and Approve 1) FY 2024 Budget Amendments in Various Funds, and 2) Amendments to the FY 2024 Table of Organization to add 1.00 Full Time Equivalent (FTE) Position. CEQA Status – Not a Project. City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Administrative Services Meeting Date: February 12, 2024 Report #:2311-2233 TITLE Discuss the FY 2024 Mid-Year Budget Review and Approve 1) FY 2024 Budget Amendments in Various Funds, and 2) Amendments to the FY 2024 Table of Organization to add 1.00 Full Time Equivalent (FTE) Position. CEQA Status – Not a Project. RECOMMENDATION Staff recommends that the City Council review, discuss, and approve: 1) Amendments to the Fiscal Year 2024 Budget Appropriation for various funds and various capital projects, as identified in Attachment A, Exhibits 1 and 2 (requires a supermajority, 2/3 approval); and 2) Amend the FY 2024 Table of Organization in Attachment B consistent with the budget amendments in Attachment A, adding 1.00 full time position. EXECUTIVE SUMMARY This report provides an extensive update on the City’s financial status as of December 31, 2023. Included in this report are: 1) Recommended budget adjustments to FY 2024 that reflect urgent / high priority fiscal needs, revenue supported program activities, and technical adjustments, 2) Recommended changes in staffing levels in FY 2024 adding 2.00 positions and deleting 1.00 position, 3) Updated information on the City’s financial position and outlook in FY 2024 including positioning for the upcoming FY 2025 budget process, and 4) FY 2024 2nd quarter financial status updates (Attachment C). The next significant financial planning and budget discussions will be the review of the FY 2025 proposed operating and capital budgets and municipal fee schedule (May 2024 – June 2024) and recommended utility rate updates (March 2024 – June 2024). This report addresses the City Council referral adopted with the FY 2024 budget to revisit key Council priority investments, makes recommended funding adjustments based on activities through December 2023, and proposes technical adjustments. If approved, these actions will authorize investments for immediate needs and key priority areas to be addressed in FY 2024 (rather than waiting for the FY 2025 budget process) and position the Council for its FY 2025 budget deliberations in the coming months with the most current financial projections. The balancing strategy works to continue the practice of funding ongoing activities with ongoing revenue sources to continue use of the uncertainty reserve and excess savings in the Budget Stabilization Reserve to offset projected deficits for the next several years. If this report is approved as recommended, the Uncertainty Reserve will maintain a balance of $9.5 million and the Budget Stabilization will remain at $57.2 million, $3.3 million above the Council- approved 20% level or $53.9 million. These amounts are in line with estimates provided in the FY 2025-2034 Long Range Financial Forecast (LRFF) and this reserve funding will be used in the financial planning for the FY 2025 Proposed Budget and beyond. Staff will continue to monitor these estimates and may bring forward a year-end budget adjustment report in June with any additional refinements to budgeted levels based on the most current information available. The City Council may amend the annual budget through appropriate motion; Attachment A and B, if approved as recommended, provide the necessary transactional information for official amendment of the annual budget. The budget appropriation actions require a supermajority approval by the City Council (PAMC 2.28.080(c)(1)), or five (5) votes. BACKGROUND Staff provides the Mid-Year Budget Review to report the financial status of major funds and the Capital Improvement Program as of the second quarter (Q2) of the current fiscal year and recommends adjustments to the Adopted Budget. This Mid-year Budget Review also recommends funding for priority initiatives in advance of the FY 2025 budget process in alignment with expressed priorities by the City Council during the FY 2024 Adopted Budget process. Additionally, this report aligns estimates for significant changes that have occurred in FY 2024, including projections for major tax revenues. In the first half of FY 2024, staff brought forward the FY 2023 Annual Comprehensive Financial Report (ACFR) (Staff Report 2311-2230)1 for Council approval and the First Quarter (Q1) FY 2024 Financial Report (Staff Report 2307-1774)2 as an informational report. Staff reported higher annual earnings for general fund revenues in FY 2023 as compared to the budget primarily due to a faster recovery of major tax revenues in the last two quarters of the fiscal year. This recovery trend continued in the first and second quarter of FY 2024, with several major tax 1 January 16, 2024 City Council Meeting: FY 2023 Annual Comprehensive Financial Report https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13566 2 January 22, 2024 City Council Meeting: FY 2024 First Quarter Financial Status Report https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13333 revenue categories tracking to exceed budgeted levels; actual year end results may vary due to continued economic uncertainty. Staff is recommending that the City Council recognize this additional funding as part of this report and anticipates using this additional one-time funding and reserves to support near-term funding priorities and bridge projected shortfalls as part of the FY 2025 budget development. Longer term, staff expects that economic recovery and a more diverse revenue base will help to stabilize the fiscal outlook. Where possible, budget change recommendations are brought forward for City Council consideration as part of the approval of the Mid-Year Budget Report to consolidate requests and streamline changes to budget appropriations. These adjustments are necessary as revenues and expenditures vary from the original budget plan for many reasons such as changes in economic factors, project estimates and scope, and City Council policy and direction. The Mid-Year Budget Report reflects adjustments to align with prior City Council approved direction, fund Council priorities deferred from the FY 2024 Adopted Budget, and clean-up actions based on FY 2023 actual experience or current FY 2024 actual activities. As discussed in the FY 2025-2034 Long Range Financial Forecast (LRFF)3, and consistent with the projections in the FY 2024 Adopted Budget, deficits are reflected in the near term due to ongoing resources added to support priority initiatives and projected economic stagnation. Ongoing financial stability will require continued prioritization of spending and utilization of one-time surplus funding and the Uncertainty Reserve to address short term deficits in the next few years. ANALYSIS This item serves as a continuation of the many touch points as the City balances responding to emergent priorities with following through on established commitments. Findings and recommended adjustments in this report are based on the data available at the time of reporting and reflect preliminary 2nd Quarter financial activity in FY 2024 (Attachment C). Final Q2 data is typically available at the end of March 2024, though material differences are not expected. The staff report provides discussion of the balancing strategy as well as key highlights from the detailed adjustments. This report is organized as follows: 1) FY 2024 Mid-Year Budget Adjustments (Attachment A) a. General Fund i. Mid-Year Budget Review Balancing Strategy Summary ii. Recommended Amendments to the FY 2024 Adopted Budget iii. Position/Table of Organization Changes Summary (Attachment B) iv. City’s Financial Position in FY 2024 and FY 2025 3 January 22, 2024 City Council Meeting: 2025-2034 Long Range Financial Forecast https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13333 b. Internal Service Funds c. Special Revenue Funds d. Enterprise Funds e. Capital Funds 2) Preliminary General Fund Q2 Financial Status & public safety overtime (Attachments C & D) 3) Timeline and Next Steps The following is an overview of the status for the General Fund, Enterprise Funds, and other funds including recommended budget adjustments as they pertain to the City’s FY 2024 Operating and Capital Budgets. 1.a. General Fund 1.a.i. Mid-Year Budget Review Balancing Strategy Summary The following table outlines the major drivers of the General Fund mid-year recommended balancing strategy to offset the collective impact of a few key activities: - Completion of FY 2023 year-end financial transactions which ended with funding of $3.4 million above the 20% Council adopted target level in the Budget Stabilization Reserve as discussed in the FY 2023 Annual Comprehensive Financial Report (ACFR). - Alignment with current FY 2024 estimated major tax revenue projections as discuss in the FY 2025-2034 Long Range Financial Forecast (LRFF). - Support to continue Council priority investments as referred during the FY 2024 Adopted Budget process and routing operations. This report continues to work to balance the immediate needs with the mid- and longer-term forecast needs, using one-time funds as a key tool in bridging uneven economic trends. There are potential risks and benefits associated with continuing this balancing strategy that should be considered when looking beyond FY 2024. The risks would further reduce the City’s ability to fund the current level of services over the next several years, while the benefits could offset costs for a longer period or even increase available funding sources. These are discussed further in the Proposed Balancing Solutions section of this report. Table 1: General Fund Mid-Year Adjustments and Balancing Solutions Summary of General Fund Adjustments Net $ Impact (Cost)/Benefit FY 2024 Council Budget Referral and Priorities Investments Rental Registry Program $(0.2) M California Avenue Car Free Streets $(0.1) M Parklet Prototypes $(0.1) M Fleet Electrification $(0.1) M Summary of General Fund Adjustments Net $ Impact (Cost)/Benefit Youth Mental Health $(33,000) Subtotal FY 2024 Priority Investments:$(0.6) M Recommended Funding: Planning and Transportation Services $(0.2) M Public Safety Services $(0.1) M Subtotal Recommending Funding:$(0.3) M Technical Adjustments: Major Tax Revenues & Investment Earnings (Property Tax, Sales Tax, Utility Users Tax, Transient Occupancy Tax, Documentary Transfer Tax) $3.6 M Utility Equity Transfer FY 2023 True-up $0.3 M Utility Equity Transfer Case (Net-Neutral Action) ($11.2M for first round of settlement, offset by $11.2M from Reserve) $0.0 M Supplemental Pension 115 Trust Contribution ($1.7M of the excess FY23 Budget Stabilization Reserve) $(1.7) M Capital Improvement Funding ($1.7M of the excess FY23 Budget Stabilization Reserve) $(1.7) M El Camino Real Ballpark/Lot 37 FY 2023 Rent $(0.2) M Golf Course Services Revenue FY 2023 True-up $(0.1) M Subtotal Technical Adjustments:$0.2 M Use of Uncertainty Reserve (Uncertainty Reserve remains at $9.5M) $0.6 M Use of Budget Stabilization Reserve (BSR) (BSR remains at 21.2% and $3.3 M above the 20.0% target level) $0.1 M Total Net Impact General Fund Mid-Year Adjustments $0.0 M 1.a.ii. Recommended Amendments to the FY 2024 Adopted Budget This report includes budget adjustments to 1) make key investments in alignment with deferred investments identified by Council through its FY 2024 Budget and priorities, 2) recommended funding for grants, urgent or timely needs, or 3) technical adjustments. Major changes are recommended as directed by the City Council and/or recommended by staff are below, and all transactions can be found in greater detail in Attachment A. It should be noted that recommended budget adjustments have been prorated for the remainder of the fiscal year where appropriate. FY 2024 Council Budget Referral and Priorities Investments As part of the FY 2024 budget process, the Finance Committee and City Council referred some priority investments to be reviewed during the FY 2024 Mid-Year Budget Review. This section addresses each of these and the status and investments in alignment with the Council priority objectives: •Fleet Electrification (PWD): $1,350,000 is requested to allow for nine additional FY 2024 vehicle replacements to be all-electric: 3 Ford F-150s, 2 GMC 6yrd Dump Trucks, 2 Ford Ranger Small Pickup Trucks, and 2 Chevy Blazers. The cost is spread across five funds (General, Electric, Gas, Wastewater Collection, and Water) in the Community Services, Planning and Development Services, and Utilities Departments, with $130,000 in the General Fund. Fleet electrification is ongoing, and staff will return to Council with recommendations for additional replacement of vehicles with electric models as part of the FY 2025 Budget. •Sea Level Rise (PWD): No additional funding is requested yet. Staff is in the process of evaluating future steps and investments to better inform the request for additional funding in the context of correspondence with the Army Corps of Engineers about the South San Francisco Bay Shoreline Phase II Feasibility Study. Work continues; however, additional funding is likely to be requested as part of the FY 2025 budget process rather than at this time. •Youth Mental Health (CSD): This brings forward $30,000 in funding to host an event with the goal of nurturing support and sharing knowledge on topics relevant to youth mental health. In pursuit of this goal, the Community Services Department will actively engage in partnerships with Youth Community Service, Project Safety Net, Allcove, and other partners to identify specific target audiences and refine event formats. Partnership with the Department of Transportation to fund rides through Palo Alto Link ($3,000) for youth attending this event and other locations to access programs and services conducive to enhancing mental health is also included. This is an incremental step and reflects expected activity during the remaining months of FY 2024. •Eucalyptus Tree Removal (CSD/OES): No additional funding is requested at this time as staff has pursued a grant to support funding for this project to increase wildfire safety. •Unhoused Resident Services (CMO): No additional funding is requested as initially, staff expected to develop a plan for better coordination among homeless individuals and housing/services. However, most services are already managed by the County through the Palo Alto-supported Community Plan to End Homelessness4. To avoid duplication, the focus shifted to strengthening services through improved coordination and launching a pilot outreach worker program. Additionally, staff expects to propose a new Priority Objective 4 https://housingtoolkit.sccgov.org/take-action/santa-clara-county-community-plan-end-homelessness-2020-2025 for 2024 focused on increasing capacity, coordination and effectiveness relating to housing and services for the unhoused in Palo Alto. •Regulate Short Term Rentals (PDS): No additional funding has been brought forward at this time as staff continues to not have the capacity to take on this objective at this time. Resources, as discussed later, are added for the establishment of a new Rental Registry Program prioritizing that program and other Council Priorities at this time. In addition to those items referred for consideration as part of this Mid-Year review, limited investment in Council priorities is recommended including: •California Avenue Car Free Streets Project Management (CMO): Funding of $85,000 is recommended for provisional staff for the oversight of the California Avenue car free street efforts. Recognizing the critical and focused effort needed to support this area, this resource will provide a more flexible means to engage on this multidisciplinary effort going forward with the City's consultant, Urban Field Studio, stakeholders, and City staff. •Rental Registry Program (PDS): A new Senior Planner position and contractual resources of $228,000 are recommended to be added in alignment with the Council priority objecting and prior council direction to establish a Rental Registry Program. •Parklet Prototypes (PDS): This action appropriates $84,000 for the estimated costs of development of up to three parklet prototype concepts. This uses one of the City's on-call contracts with Urban Planning Partners, Inc. and will include long range planning, application processing, and environmental review services. Recommended Additional Funding In limited areas staff recommends appropriation of additional funding to continue operations and support needed investment. Key investments are summarized here by service delivery area: •Planning and Transportation Services: $214,000 revenue, $461,000 expense For the Office of Transportation, this report recommends the recognition of Measure B grant revenue in the amount of $213,725, along with an increase in contract services by the same amount. Staff will use the grant funding to hire a consultant to manage the Safe Routes to School Program. Palo Alto Transportation Management Authority (PATMA) has requested additional funding of $84,000 to maintain existing service levels, but an increase of $42,000 is recommended to support continued services. Staff expects to reassess funding needs in preparation for FY 2025. Although the current contract amount is $200,000, PATMA has identified that the true cost of current services is $330,000 per year and they have utilized surplus funding received in prior years to cover costs. Those surplus funds have been exhausted. PATMA will need to evaluate staff time and outreach at hotels, restaurants, and shops in the City. For the Planning and Development Services Department, this report includes recommendations to delete an Assistant Chief Building Official position and add a Planning Division Manager for the Development Center and planning special projects to better align with the goals and needs of improving the Development Center and planning operations. Funding totaling $163,000 is also recommended to continue the Department’s cost allocation fee study, update development impact fee calculations, and fund a new electric vehicle for code enforcement staffing. •Public Safety Services: $65,000 expense Ongoing funding of $50,000 for the Fire Department will be used for first responder equipment maintenance and training supplies. This funding addresses maintenance and repair costs for personal protective equipment (PPE), equipment tracking software, and supplied air respirator machines. Ongoing funding of $15,000 will be used to cover cost increases for training drill supplies such as lumber as well as increases due to staff turnover and increased training needs. Technical Adjustments and Previous Council Direction This report includes actions that are technical in nature and are needed to align budget with current trends, and previous direction approved by the Council. Major changes are recommended as directed by the City Council and/or recommended by staff are below, and all transactions can be found in greater detail in Attachment A. •Major Tax Revenue ($3.3 million additional revenue; ($300,000) expense reduction): Staff evaluated departmental and major tax revenue through Q2 and recommends actions that result in a net $3.6 million increase. As noted in the Q1 Financial Report, major tax revenue categories are trending higher than budgeted in FY 2024, and a $3.3 million increase is recommended to adjust Sales Tax ($1.6 million increase), Utility Users Tax (UUT) ($1.2 million increase), Investment Earnings ($1.1 million increase), and Property Tax ($0.8 million increase), partially offset by Transient Occupancy Tax (TOT) ($1.3 million decrease) and Documentary Transfer Tax (DTT) ($0.1 million decrease) based on trends experienced in the first half of FY 2024. Since a portion of TOT revenue has been dedicated to fund capital improvements, per Council direction, the reduced TOT revenue estimates warrant a reduction in the transfer from the General Fund to the Capital Improvement Fund ($0.3 million decrease). •Utility Equity Transfer FY 2023 True-up ($293,000 additional revenue): This action increases the equity transfer to the General Fund by $293,000 with additional funding from the Gas Fund ($508,000) partially offset by reduced funding from the Electric Fund ($215,000) in FY 2024. This action is in alignment with the FY 2023 Annual Comprehensive Financial Report (ACFR) as of June 30, 2023 (Staff Report 2311-2230)5 . •Utility Transfer Litigation (Equity Transfer) Reserve (Net Neutral Expense Adjustment): This action implements the first set of refunds issued to class members as a result of the Green v. City of Palo Alto (Santa Clara Superior Court, Case No. 1-16-CV-300760) settlement. Use of $11.2 million for this first refund leave a remaining reserve balance of $6.3 million for planned future settlement payment needs. •Uncertainty Reserve: Use of $0.6 million from the FY 2024 Adopted Budget level of $10.1 million is half of the $1.0 million set aside as part of the FY 2024 budget process for additional priority investments. $9.5 million remains in the reserve; approximately $6.0 million of the reserve will be necessary to provide one-time funding for the FY 2025 forecasted deficit outlined in the City's 2025-3034 Long Range Financial Forecast. •Supplemental Pension Trust Contribution ($1.7 million expense): This adjustment adds a $1.7 million transfer to the General Benefits Fund for an additional contribution to the City’s Section 115 Pension Trust. This action was approved by the City Council in the FY 2023 Annual Comprehensive Financial Report (ACFR) for BSR exceeding target levels of 18.5%, reflects General Fund contributions only, and is consistent with the City’s Retiree Benefits Funding Policy. Staff will include adjustments for proportional contributions from other (non-General Fund) funds as part of the FY 2024 year-end or FY 2025 proposed process consistent with past practice and policy guidelines. •Capital Improvement Funding ($1.7 million expense): This adjustment formalizes City Council actions to allocate $1.7 million resulting from FY 2023 year-end excess BSR, bringing the total base General Fund transfer to the Capital Improvement Fund to $12.5 million in FY 2024 and is consistent with the Council policy guiding use of surplus funds. This funding will increase the fund balance in the Capital Improvement Fund for use in the development of the upcoming 2025-2029 five-year Capital Improvement Plan. •El Camino Real Ballpark/Lot 37 FY 2023 Rent ($221,000 expense): This action will allow the payment of the Fiscal Year 2023 rent due to Stanford for the El Camino Real Ballpark, also referred to as Lot 37. The FY 2023 rent was withheld by the City while a minor error on the rental invoice was resolved with Stanford. Agreement was reached in FY 2024; however, the remaining funding in FY 2023 was inadvertently omitted from the reappropriation process to move funds into FY 2024. •Golf Course Services Revenue FY 2023 True-up ($51,000 expense): This adjustment increases contract expenditure by $51,000 for City Golf Course operations owed to the management company, OB Sports. The terms of agreement include a revenue share equivalent to 20% of 5 January 16, 2024 City Council Meeting: FY 2023 Annual Comprehensive Financial Report https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13566 the calculated FY 2023 difference between Gross Revenue and Target Revenue for that fiscal year. 1.a.iii. Position/Table of Organization Changes Summary Two position actions are recommended in this report, both in the Planning and Development Services Department. They include the addition of 1.00 Senior Planner to facilitate the rental registry program and the addition of 1.00 Planning Division Manager and deletion of 1.00 Assistant Chief Building Official. This will increase full-time staffing levels in the General Fund from the FY 2024 adopted level of 586.06 to 587.06. Although staffing challenges remain citywide, staff is focusing on recruitments of current vacant position and all others new staffing requests will be addressed through the FY 2025 annual budget process. This reflects movement towards the City’s practices prior to the pandemic in alignment with best budgeting practices. Staff will continue to use appropriate temporary staffing measures, such as overstrength positions overseen by the City Manager, to proactively address time sensitive staffing needs and maintain high quality services for residents. 1.a.iv. City’s Financial Position in FY 2024 and FY 2025 With any forecast and adjustments based on projections, there are inherent risks and benefits. Staff seeks to position the City in order to provide organizational stability, while acknowledging the service and resource needs, capacity to implement, and project pipeline to continue to reinvest at a pace the organization can support. Should the Council approve the actions recommended in this report, there will be three (3) reserves in the General Fund with the following status: 1. Reserve: Utility Transfer Litigation (Equity Transfer) $6.3 million, from $17.5 million Planned to be used for the continued compliance with the Green v. City of Palo Alto (Santa Clara Superior Court, Case No. 1-16-CV-300760) settlement 2. Budget Uncertainty Reserve $9.5 million, from $10.1 million Planned to be used for the FY 2025 projected deficit of $6.0 million with remaining funds to be discussed and planned uses identified as part of the FY 2025 budget process. This reserve was established to help the City manage the immediate term recovery and uncertainty, ensuring that the City has a stable financial plan to address current service levels while investing in core priority service areas. As a reminder the City also is facing a forecasted deficit in FY 2026 of $5.4 million too. 3. Budget Stabilization Reserve estimated to be $57.2 million, which is above the adopted 20% level of $53.9 million by $3.3 million. The City’s Budget Stabilization Reserve (BSR) serves as the primary General Fund reserve and is maintained at a level between 15% and 20% of General Fund operating expenses in any given year. This is both intended for catastrophic events as well as a repository for unspent operating funds at year-end used to fund one-time unexpected needs that arise outside of the regular budget preparation process. Prudent financial management practices dictate that the BSR not be used to fund or solve on-going, recurring financial needs. Alternatively, Council could amend this and appropriate the excess BSR of $3.3 million to the Uncertainty Reserve. This would consolidate one-time funding to support FY 2025 and immediate outer years and Council priority investments in one location. If this was done, the Uncertainty Reserve would be $12.8 million, of which $6.0 million is planned to resolve the FY 2025 deficit. Remaining funds could be used for the FY 2026 deficit of $5.4 million and/or investing in Council priorities. Potential risks and benefits associated with this balancing solution that should be considered when looking beyond FY 2024. The risks would further reduce the City’s ability to fund the current level of services over the next several years, while the benefits could offset costs for a longer period of time or even increase available funding sources. Risks include but are not limited to the unresolved deficit beyond FY 2025 - estimated deficits in FY 2026 and FY 2027 (approximately $8.8 million in total) need to be resolved; labor contracts will be renegotiated around the time of developing the FY 2026 budget; economic recession or more sever stagnation of economic growth would cause increased deficits over the next several years. Benefits include but are not limited to the reserve levels to bridge FY 2025 services for at least one more year; revenue and expense estimates may materialize additional available funds; the City’s diligence in funding long term liabilities such as pension have the potential to fund annual pension and retiree healthcare costs to provide short-term relief; a more robust economic recovery. 1.b. Internal Service Funds – Mid-Year Budget Adjustments Mid-Year actions recommended in these funds are related to technical adjustments to align the City’s contributions to the 115 Pension Trust Fund with Council policy, increase funding for higher estimated liability costs, and provide funding for the Council priority for electrification of the City’s fleet. See Attachment A, Exhibit 1 for further information regarding the recommended changes in the Internal Service Funds. •General Benefits Fund: Supplemental Pension Trust Contribution of $5.7 million in additional contributions to the City’s Section 115 Pension Trust consistent with the funding policies outlined in the City’s Retiree Benefits Funding Policy. This brings total principal contributions to $73.3 million ($47.5 million from the General Fund) since inception in 2017. Included in this adjustment are true-up actions for FY 2023 excess BSR funds of $1.7 million and $1.2 million in FY 2023 year-end pension savings and $2.8 million in non-General Fund funds proportional contributions to “catch-up” to prior year General Fund contributions. •General Liabilities Fund: Supplemental insurance funding of $355,000 supports increasing insurance premium costs. Specifically, $196,000 in expense for umbrella excess liability insurance and $159,000 for property loss insurance. This brings FY 2024 funding for umbrella excess liability insurance from $4.2 million to $4.4 million and property loss insurance from $0.8 million to $0.9 million. •Vehicle Replacement and Maintenance Fund: Fleet Electrification adjustment adds $1.3 million in expense and revenue to allow for 9 additional FY 2024 vehicle replacements to be all-electric: 3 Ford F-150s, 2 GMC 6yrd Dump Trucks, 2 Ford Ranger Small Pickup Trucks, and 2 Chevy Blazers. The cost of $1.3 million is spread across 5 funds (General Fund, Electric Fund, Gas Fund, Wastewater Collection Fund, and Water Fund) in the Community Services, Planning and Development Services, and Utilities Departments, with $130,000 in the General Fund. Fleet electrification is ongoing, and staff will return to Council with recommendations for additional replacement of vehicles with electric models as part of the FY 2025 Budget. A new vehicle to support a new Code Enforcement Supervisor position added in FY 2024 in the amount of $64,000 for a new electric Chevy Blazer supporting daily off-site duties and sustainability goals is also added. 1.c. Special Revenue Funds – Mid-Year Budget Adjustments Mid-Year actions recommended in these funds are related to technical adjustments to align updated revenue projections from the State for Gas Tax funding and align a transfer from the Community Development Block Grant Fund to the Capital Improvement Fund for Sidewalk repair work. See Attachment A, Exhibit 1 for further information regarding the recommended changes in the Special Revenue Funds. •Gas Tax Fund: The City receives revenues from California’s Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation Account (RMRA SB1). In January, the Department of Finance’s updates for estimated revenues from these accounts indicated that receipts would be lower than what is currently in the City’s budget. To align with the new estimates, gas tax revenues will be reduced by $16,194, and transfers to the Capital Improvement Fund for the Street Maintenance project (PE-86070) will be reduced by the same amount. •Community Development Block Grant: A technical adjustment is needed to align the FY 2024 Budget with the FY 2023-24 CDBG Action Plan by recognizing a $211,673 transfer from CDBG to the Capital Improvement Fund for the Sidewalk Repairs project (PO-89003). 1.d. Enterprise Funds – Mid-Year Budget Adjustments Mid-year actions being recommended in these funds are primarily related to the alignment of the Utilities Department budgets with current market conditions for revenues and expenses related to the purchase of commodities and the operation of utilities. The actions recommended for FY 2024 mid-year will align revenues and expenses for interfund transfers for the Gas and Electric Fund Utilities Equity Transfers; Electric Fund revenue projections and commodity costs; and shared costs for Water, Gas, Wastewater Utility GIS Data project WS- 02014. See Attachment A, Exhibits 1 and 2 for further information regarding the recommended changes in the Enterprise Funds. Capital Budget – Mid-Year Budget Adjustments Several Capital Improvement Program projects require adjustments in FY 2024. For a detailed view of all project adjustments by Fund, see Attachment A, Exhibit 2. •All remaining funding in the Automated External Defibrillator Replacement (FD-21000) and Extrication Tool Replacement (FD-22000) projects will be removed because both projects have been completed. The remaining amounts are $38,000 of revenue in FD-21000, and $20,845 of revenue and $79,153 of appropriation in FD-22000. •As approved by the Valley Transportation Agency (VTA), Measure B revenue will be reallocated from the Railroad Grade Separation and Safety Improvements project (PL- 17001) to the Traffic Signal and Intelligent Transportation Systems (PL-05030) and Transportation and Parking Improvements (PL-12000) projects in the amounts of $701,500 and $233,833, respectively. •Align the Street Maintenance project (PE-86070) with reduced gas tax revenue estimates discussed in the Gas Tax Fund section above with a reduction of $16,194. •Align the Roth Building Rehabilitation project (PF-23001) with County grants awarded for the building’s windows and roof in the amount of $387,590, as well as $200,000 of interest earnings on Transfer Development Rights (TDR) funding reserved for this project in the Capital Improvement Fund. •$211,673 of appropriation and CDBG grant revenue will be added to the Sidewalk Repairs project (PO-89003) to align the FY 2024 budget with the FY 2023-24 CDBG Annual Action Plan. •Nine projects require technical adjustments to align FY 2024 budgets with FY 2023 actual financial activity, with no changes to project schedules or scopes. 2) Preliminary Q2 Financial Status & public safety overtime (Attachment C & D) Attachments C and D provide summary information on actual preliminary financial activity through December 2023. These actuals have been factored into the analysis and projections used in the development of this Mid-Year Budget Review. Overall, they remain consistent with trends seen in the first quarter of the fiscal year. Staff will continue to monitor trends and update assumptions as part of the FY 2025 budget process as necessary. 3) Timeline and Next Steps Staff is actively working on the FY 2025 budget and regular reporting activities over the coming months. Below is a list of expected reports and Council updates planned for the remainder of FY 2024. The Council and Finance Committee will continue to be updated through these planned discussions with adjustments brought forward as necessary. Expected upcoming financial status and budget reporting include: March/April 2024: ➢Utility Advisory Commission (UAC) and Finance Committee Meetings – Five Year Utility Financial Plans and FY 2025 Rate Recommendations May 2024: ➢Release of the FY 2025 Proposed Operating and Capital Budgets & Municipal Fee Changes ➢Public Budget Hearings on the Proposed Budgets with Finance Committee, including Utility Rates, Municipal Fees, and the 5-Year Capital Improvement Plan June 2024: ➢FY 2024 Third Quarter (Q3) Fiscal Analysis Report (information) ➢FY 2025 Operating and Capital Budget Adoption ➢FY 2025 Municipal Fee Adoption ➢FY 2025 Utility Rates adoption In addition, routine information reports including but not limited to utilities risk management, investment reports, contracts and lease reporting will continue. FISCAL/RESOURCE IMPACT Approval of the attached transactions is required to amend the FY 2024 budget appropriation. With the approval of these amendments, the Budget Stabilization Reserve (BSR) would be reduced by $0.1 million and the projected ending balance of the General Fund BSR is anticipated to be $57.2 million, which is $3.3 million above the 20% City Council target level $53.9 million. As mentioned previously, Council could amend this and appropriate the excess BSR of $3.3 million to the Uncertainty Reserve. This would consolidate one-time funding to support FY 2025 and immediate outer years and Council priority investments in one location. If this was done, the Uncertainty Reserve would be $12.8 million, of which $6.0 million is planned to resolve the FY 2025 deficit. Remaining funds could be used for the FY 2026 deficit of $5.4 million and/or investing in Council priorities. The projected changes to the fund balance for all other funds including Capital Funds, Enterprise Funds, Internal Services Funds, and Special Revenue Funds, and are outlined in Attachment A and accompanying exhibits and impacts to fund balance by fund are summarized as follows: Table 2: Resource Impact (Non-General Fund) Fund Type Fund Amount Capital Capital Improvement Fund $0.7 M Enterprise Airport Fund $(36,000) Electric Fund $24.4 M Fiber Optics Fund $(38,000) Gas Fund $(0.1 M) Refuse Fund $(0.1 M) Stormwater Management Fund $(0.1 M) Utility Administration Fund $(0.1 M) Wastewater Collection Fund $0.2 M Wastewater Treatment Fund $(0.9 M) Water Fund $(2.3 M) Internal Service General Benefits Fund $(4.0 M) General Liabilities Fund $(0.4 M) Information Technology Fund $(0.4 M) Print and Mail Services Fund $(9,000) Vehicle Replacement Fund $(0.1 M) Workers’ Compensation Fund $(11,000) Special Revenue California Avenue Parking Fund $(6,000) Community Development Block Grant Fund $(0.2 M) Gas Tax Fund $(16,000) Housing In Lieu Fund $(2,000) Public Art Fund $(6,000) Residential Parking Permit Fund $(11,000) University Avenue Parking Fund ($22,000) STAKEHOLDER ENGAGEMENT The Office of Management and Budget has coordinated with all departments city-wide and the City Manager’s Office, as appropriate, to bring forward the changes discussed and recommended in this report. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because the amendments to the FY 2024 Budget Appropriation and FY 2024 Table of Organization are fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS Attachment A, Exhibit 1: FY 2024 Recommended Operating Budget Adjustments Attachment A, Exhibit 2: FY 2024 Recommended Capital Budget Adjustments Attachment B: Amended FY 2024 Table of Organization Attachment C: Preliminary FY 2024 2nd Quarter Financial Status Attachment D: Public Safety Overtime Analysis APPROVED BY: Kiely Nose, Assistant City Manager Revenues Department  FTE Adjustment Adjustment GENERAL FUND (102) Administrative  Services Technical Adjust: Business Tax Revenue/Business Registry Administration Contract Funding  This action increases expenses to support the business tax and registry program administration contract, as  scheduled to be presented to the City Council in Staff Report 2401‐2481 on February 5, 2024, and recognizes  sufficient Measure K revenue to offset this expense. This contract will provide administration, collection, and  enforcement services for the City’s business tax and business registry certificate program. (Ongoing costs: $0)                        ‐   41,000$                     41,000$                   City Manager's  Office FY 2024 Budget Council Priority: California Avenue Car Free Streets Project Management This action increases the appropriation for salaries and benefits to fund the equivalent of 0.60 Assistant to the  City Manager provisional limited term position to support the oversight of the California Avenue car free street  efforts. This work is currently being done through consultant services; however, as staff this resource will  provide a more flexible means to engage on this multidisciplinary effort going forward with the City's  consultant, Urban Field Studio, stakeholders, and City staff. (Ongoing costs: $170,000 FY 2025 only)                        ‐    ‐$                           85,000$                   Community  Services FY 2024 Budget Council Priority: Fleet Electrification This action allows for a vehicle in the Community Services Department to be replaced by an all‐electric Ford F‐ 150. As part of the FY 2024 Budget Adoption, select priorities were identified to be revisited at Mid‐Year.  This  action reflects a recommended continued transition to electric vehicles to allocate an additional $1.3 million  across various funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)                        ‐    ‐$                           80,000$                   Community  Services Technical Adjust: Golf Course Green Fee Contract Services Alignment This action increases expenditures related to City Golf Course operations. Contract expenditures are increased  by $51,000 to reflect amounts owed to the service provider, OB Sports, per the compensation terms of the  agreement with the City.  The calculated FY 2023 revenue share, or 20% of the difference between Gross  Revenue and Target Revenue for that fiscal year is reflected in this true‐up adjustment. (Ongoing costs: $0)                        ‐    ‐$                           51,000$                   Community  Services Recommended Funding: Charges for Services Revenue/Children and Teen Studio Art Class Funding This action provides $50,000 in contract dollars for the Art Center's Kids and Teens Studio program offset by  $50,000 in additional registration revenue. This increase will allow for increased demand for spring classes and  summer camps, provide increases in hourly pay for contract instructors, and remain competitive in the  marketplace. (Ongoing costs: $0)                        ‐   50,000$                     50,000$                   Community  Services FY 2024 Budget Council Priority: Youth Mental Health Event Funding This action allows for a Youth Mental Health program to support and plan an event with community partners  focused on youth mental health and empowerment. As part of the FY 2024 Budget Adoption, select priorities  were identified to be revisited at Mid‐Year. The $0.2 million estimated for these services has been updated  due to event dates shifting from FY24 to FY25, and recalculated costs to administer these events. Additional  funding ($3,000) is recommended in the Office of Transportation to fund rides through PA Link for youth  attending this and other vital locations to access programs and services conducive to enhancing mental health.  (Ongoing costs: $100,000)                        ‐    ‐$                           30,000$                   Community  Services Recommended Funding: Development Impact Fee Conversion  This action increases funding for contractual services to facilitate the conversion of three existing  Development Impact Fee Programs. Currently assessed on a per dwelling basis, these fees will be transitioned  to a per building square foot basis, in compliance with California State Assembly Bill 602. Additional funding is  recommend in the Planning and Development Services Department ($20,000) to fund half of the total contract  cost as these fees are maintained jointly by the two departments. (Ongoing costs: $0)                        ‐    ‐$                           20,000$                   CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 65,000$                  ‐$                                                  ‐   Recommended Funding: Fire Equipment Maintenance and Training Supplies This action adds $65,000 in ongoing funding for first responder equipment maintenance and training supplies.  This funding addresses maintenance and repair costs for personal protective equipment (PPE), equipment  tracking software, and supplied air respirator machines. Additionally, this action adds funding for training drill  supplies due to an increase in costs such as lumber as well as an increase in training needs due to staff  turnover. (Ongoing costs: $65,000) Fire Revenues Department  FTE Adjustment Adjustment GENERAL FUND (102) CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 Non‐ Departmental Technical Adjust: Projected Tax Revenue/Transfer to the Capital Improvement Fund This action recognizes adjustments to estimates for Sales Tax ($1.6 million increase), Utility Users Tax (UUT)  ($1.2 million increase), Investment Earnings ($1.1 million increase), and Property Tax ($0.8 million increase),  partially offset by Transient Occupancy Tax (TOT) ($1.3 million decrease) and Documentary Transfer Tax (DTT)  ($0.1 million decrease) based on trends experienced in the first half of FY 2024. This adjustment would bring  Property Tax revenue to $64.6 million, Sales Tax revenue to $37.7 million, TOT revenue to $25.5 million, UUT  revenue to $19.7 million, DTT to $5.8 million, and Investment Earnings to $2.9 million. This action also  decreases the transfer to the Capital Infrastructure Reserve by $0.3 million due to the reduced TOT revenue  that Council designated to fund Capital Improvements. (Ongoing savings: $0)                        ‐   3,289,000$               (300,000)$                Non‐ Departmental Technical Adjust: Business Tax Revenue Alignment/Transfer to the Capital Improvement Fund This is a technical correction to consolidate the recognition and receipt of all Business Tax revenue in the City's  General Fund; no new revenue is reflected in this action. Previously the budget reflected tax revenues in  association to transportation capital investments in the Capital Improvement Fund ($0.8 million). This action  also establishes a transfer to the Capital Improvement Fund to maintain the allocation of the funding in  alignment with the Council's adopted Advisory Spending Resolution to fund transportation and grade  separation projects. (Ongoing savings: $0)                        ‐   750,000$                  750,000$                 Non‐ Departmental Technical Adjust: El Camino Real Ballpark/Lot 37 FY 2023 Rent Funding This action increases expenses to allow payment of the Fiscal Year 2023 rent due to Stanford for the El Camino  Real Ballpark, also referred to as Lot 37. The FY 2023 rent was withheld by the City while a minor error on the  rental invoice was resolved with Stanford. Agreement was reached in FY 2024 and the City is now ready to  release the FY 2023 rent payment; however, the remaining funding in FY 2023 was inadvertently omitted from  the reappropriation process to move funds into FY 2024. (Ongoing costs: $0)                        ‐    ‐$                           220,540$                 Non‐ Departmental Technical Adjust: Transfer to the Capital Improvement Fund This action transfers $1.7 million to the Infrastructure Reserve in the Capital Improvement Fund, as approved  by the City Council on January 16, 2024 in the FY 2023 Annual Comprehensive Financial Report (ACFR) for BSR  exceeding the 20% target level. (Ongoing costs: $0)                        ‐    ‐$                           1,700,000$              Non‐ Departmental Technical Adjust: Transfer to the General Benefits Fund for Supplemental Pension Contributions This action transfers $1.7 million to the General Benefits Fund to increase the contribution to the City's Section  115 Pension Trust Fund, as approved by the Council on January 16, 2024 in the FY 2023 Annual  Comprehensive Financial Report (ACFR) for BSR exceeding the 20% target level. (Ongoing costs: $0)                        ‐    ‐$                           1,700,000$              Non‐ Departmental Technical Adjust: FY 2023 Year‐End Cleanup for the Equity Transfer This action adjusts the equity transfer from the gas and electric funds with an overall increase of $0.3 million  to align with FY 2023 year‐end actuals. The gas equity transfer increases by $0.5 million to adjust the FY23  year‐end amount from $6.7 million to $7.2 million per the staff report on April 17, 2023 to Council (CMR 2303‐ 1219). This action also includes a decrease to the electric equity transfer by $0.2 million to adjust the FY23  year‐end amount from $14.5 million to $14.3 million based on a reduced PG&E Return on Equity estimate  from 10.25% to 10.00%. (Ongoing savings: $0)                        ‐   293,000$                   ‐$                          Non‐ Departmental Technical Adjust: Utility Transfer Settlement Funding (Green v. City of Palo Alto) This action appropriates $11.2 million from the Utility Transfer Legal Cost Reserve to the General Fund for the  first set of refunds issued to class members as a result of the Green v. City of Palo Alto (Santa Clara Superior  Court, Case No. 1‐16‐CV‐300760) settlement. The reserve will retain a balance of $6.3 million that will be  appropriated based on future settlement payment needs. (Ongoing costs: $6.3M)                        ‐    ‐$                           11,153,960$            Non‐ Departmental Technical Adjust: Reduce Utility Transfer Legal Cost Reserve This action reduces the Utility Transfer Legal Cost Reserve by $11.2 million to fund the first round of refunds  issued to class members as a result of the Green v. City of Palo Alto (Santa Clara Superior Court, Case No.  1‐16‐CV‐300760) settlement. The reserve will retain a balance of $6.3 million that will be appropriated based  on future settlement payment terms. (Ongoing savings: $6.3M)                        ‐    ‐$                           (11,153,960)$          Revenues Department  FTE Adjustment Adjustment GENERAL FUND (102) CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 Non‐ Departmental Technical Adjust: Uncertainty Reserve This action reduces the City's FY 2024 Uncertainty Reserve by $0.6 million from it's FY 2024 Adopted Budget  level of $10.1 million. The Uncertainty Reserve was set aside as part of the FY 2024 process to proactively  reserve funding for FY 2025 forecasted deficit between General Fund revenues and expenses as well as $1.0  million for FY 2024 Mid‐Year additional priority investments for: fleet electrification, sea level rise, youth  mental health, eucalyptus tree removal, unhoused services, and regulating short term rentals. This Mid‐Year  recommends investments in fleet electrification, youth mental health, a rental registry program, California  Avenue car free streets and parklet prototypes. This leaves $9.5 million in unspent reserve funds. Of this $9.5  million, approximately $6.0 million will be necessary to provide one‐time funding for the FY 2025 forecasted  deficit outlined in the City's 2025‐3034 Long Range Financial Forecast. (Ongoing savings: $9.5M)                        ‐    ‐$                           (560,000)$                Office of  Transportation Recommended Funding: Measure B for Safe Routes to School/Revenue from Other Agencies This action recognizes $0.2 million in grant revenue from the Valley Transportation Agency's (VTA) 2016  Measure B Bicycle and Pedestrian Education and Encouragement Funding and increases contract services by  the same amount. Staff will use the grant funding to hire a consultant to manage its Safe Routes to School  Program. Currently, the City utilizes multiple vendors for services such as bicycle safety classes and bicycle  repair. Combining such functions within a single contract will simplify program administration and  performance. (Ongoing costs: $0)                        ‐   213,725$                  213,725$                 Office of  Transportation Recommended Funding: Palo Alto Transportation Management Authority (PATMA) This action increases the contract with PATMA by $42,000, half of the amount requested. The current annual  budget is $200,000, but the true cost of annual services is $330,000. PATMA has been utilizing surplus funding  received in prior years to cover costs exceeding the annual budget, but those surplus funds have now been  spent, and $84,000 is needed to continue the current service level of an estimated 306 cars taken off the road.  PATMA will need to evaluate staff time and outreach at hotels, restaurants, and shops in the City. Additional  ongoing cost increases for PATMA services will be considered during the FY 2025 budget development  process. (Ongoing costs: $0)                        ‐    ‐$                           42,000$                   Office of  Transportation FY 2024 Budget Council Priority: Youth Mental Health Event Funding (PALink) This action funds rides through PA Link for youth attending a city‐hosted youth mental health event and other  vital locations to access programs and services conducive to enhancing mental health. As part of the FY 2024  Budget Adoption, select priorities were identified to be revisited at Mid‐Year. Additional funding is  recommended in the Community Services Department ($30,000) to host the event. (Ongoing costs: $6,000)                        ‐    ‐$                           3,000$                      Planning and  Development Recommended Funding: Development Impact Fee Conversion  This action increases funding for contractual services to facilitate the conversion of three existing  Development Impact Fee Programs. Currently assessed on a per dwelling basis, these fees will be transitioned  to a per building square foot basis, in compliance with California State Assembly Bill 602. Additional funding is  recommend in the Community Services Department to fund half of the total contract cost as these fees are  maintained jointly by the two departments. (Ongoing costs: $0)                        ‐    ‐$                           20,000$                   Planning and  Development Recommended Funding: Cost Allocation Fee Study Amendment This action increases funding for an amendment to the cost allocation fee study for Planning and Development  services fees. Commenced in 2021, the study faced delays due to shifts in priorities induced by the pandemic.  Additional funding is needed to address escalated costs associated with these delays and to encompass the  extended time needed to complete the scope of services. (Ongoing costs: $0)                        ‐    ‐$                           59,000$                   Planning and  Development FY 2024 Budget Council Priority: Parklet Prototypes This action appropriates $84,000 for the estimated costs of development of up to three parklet prototype  concepts. This uses one of the City's on‐call contracts with Urban Planning Partners, Inc. and will include long  range planning, application processing, and environmental review services. (Ongoing costs: $0)                        ‐    ‐$                           84,000$                   Revenues Department  FTE Adjustment Adjustment GENERAL FUND (102) CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 Planning and  Development FY 2024 Budget Council Priority: Rental Registry Program Administration and Implementation This action adds a 1.00 FTE Senior Planner position and $228,000 in contractual funding for software to  establish the rental registry program as adopted and directed by the City Council on November 27, 2023.  These resources reflect first year expenditures after factoring vacancy savings, but the program is expected to  be fully funded by collected fees starting in FY 2025. (Ongoing costs: $0)                   1.00  ‐$                           228,000$                 Planning and  Development Technical Adjust: Deposit‐Based Cost Recovery Amendment This action increases revenue and expenses accordingly to support the continuity of services for the deposit‐ based cost recovery program. The Planning and Development Services Department provides a service to  expedite entitlement studies through the use and expertise of outside consultants for private development  projects. These services are fully cost recoverable and paid for by the planning applicant who directly receives  these services. (Ongoing costs: $0)                        ‐   146,000$                  146,000$                 Planning and  Development Recommended Funding: Development Center and Planning Special Project Staffing This action deletes a 1.00 FTE Assistant Chief Building Official position and adds a 1.00 FTE Planning Division  Manager position. The Assistant Chief Building Official was added in FY 2023, to focus on improving the permit  process, establish interdepartmental workflows, and problem solve complex policy and operational issues as  they arise.  After recruitment challenges and a closer review of duties, it is recommended that this realignment  of staffing be made to better align with the goals and needs of improving the Development center and  planning operations. Ongoing this will have a net cost of approximately $78,000 as this includes funding  reallocation between revenue backed fee activities and General Fund activities as well as increased costs for  the Planning Division Manager position. In FY 2024, these costs will be absorbed within existing levels through  vacancy savings. (Ongoing costs: $78,000)                        ‐    ‐$                            ‐$                          Planning and  Development FY 2024 Budget Process Priority Referal: Fleet Electrification This action allows for two Chevy Blazers in the Planning and Development Services Department used for  Building Inspections to be purchased as electric vehicles instead of the gas powered vehicles previously  approved as part of the FY 2024 Adopted Budget. This is part of an action that was deferred by Council during  FY 2024 Budget Adoption to allocate $1.3 million across various funds to allow for additional FY 2024 vehicle  purchases and replacements to be all‐electric. (Ongoing costs: $0)                        ‐    ‐$                           50,000$                   Planning and  Development Recommended Funding: Code Enforcement Supervisor Vehicle This action allocates $64,000 for a new electric Chevy Blazer for the Code Enforcement Supervisor position  added as part of the FY 2024 Adopted Budget. The Department has attempted to use a shared vehicle;  however, this position manages the City's more complex enforcement cases and builds relationships with the  community and partner departments which supports a dedicated electric vehicle for daily off‐site duties.  (Ongoing costs: $0)                        ‐    ‐$                           64,000$                   Fund Balance Adjustment to Fund Balance FY 2023 Year End use of BSR This action reduces the current Budget Stabilization Reserve (BSR) FY 2024 projected level by $3.6 million in  alignment with the actions recommended and approved by the City Council in the FY 2023 Year‐End Annual  Comprehensive Financial Report (ACFR) and Year End Budget transactions approved by Council on January 16,  2024.  This reflects allocation of funds above the Council goal of 20% of General Fund expenses based on FY  2023 year end actual financial activity. (Ongoing cost: $0)                        ‐    ‐$                           (3,620,540)$             Fund Balance Adjustment to Fund Balance This action adjusts the fund balance increases the Budget Stabilization Reserve (BSR) projected for June 30,  2024.  This would bring the BSR to an estimate of $57.2 million, this is above the Council target of 20% by $3.3  million and staff expects to discuss use of these funds as part of the FY 2025 budget process in the coming  months. These funds combined with any unspent Uncertainty Reserve funds are expected to be part of the  financial planning for FY 2025 and the near term beyond that.                        ‐    ‐$                           3,561,000$              GENERAL FUND (102) SUBTOTAL 1.00                 4,782,725$               4,782,725$              Revenues Department  FTE Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS GENERAL FUND CAPITAL IMPROVEMENT FUND (471) Capital Capital Improvement Project Adjustments    This action reflects the combined impact from adjustments to projects as outlined in  Attachment A, Exhibit 2.                   ‐   (8,253,248)$      (7,556,567)$             Capital Technical Adjust: Transfer from the General Fund (FY 2023 Year‐End Savings) This action transfers $1.7 million from the General Fund to the Infrastructure Reserve in the  Capital Improvement Fund, as approved by the City Council on January 16, 2024 in the FY  2023 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the 20% target level.  (Ongoing savings: $0)                   ‐   1,700,000$        ‐$                               Capital Technical Adjust: Transfer from the General Fund (Business Tax Revenue) This action transfers Business Tax revenue recognized in the General Fund to rail grade  separation capital projects (PL‐24000 and PL‐24001) in the Capital Improvement Fund in  alignment with the Council's adopted Advisory Spending Resolution. (Ongoing savings: $0)                   ‐   750,000$           ‐$                          Capital Technical Adjust: Business Tax Revenue Category Realignment This action removes Business Tax revenue that had been budgeted as such in rail grade  separation capital projects (PL‐24000 and PL‐24001) in the Capital Improvement Fund. That  revenue will instead be recognized in the General Fund and, in alignment with the Council's  adopted Advisory Spending Resolution, allocated to the Capital Improvement Fund via  transfers. (Ongoing costs: $0)                   ‐   (750,000)$          ‐$                          Capital Technical Adjust: Transfer from General Fund (TOT) This action reduces transfers from the General Fund to the Infrastructure Reserve in the  Capital Improvement Fund in alignment with adjustments to estimates for Transient  Occupancy Tax (TOT) revenue based on trends experienced in the first half of FY 2024.  (Ongoing costs: $0)                   ‐   (300,000)$          ‐$                          Capital Technical Adjust: Transfer from Community Development Block Grant (CDBG) This action aligns the FY24 Budget with the FY23‐24 CDBG Annual Action Plan by recognizing a  transfer from the CDBG Fund to the Capital Improvement Fund for the Sidewalk Repairs  project (PO‐89003). (Ongoing costs: $0)                   ‐   211,673$          211,673$                  Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                   ‐    ‐$                   703,319$                  GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL                   ‐   (6,641,575)$     (6,641,575)$             CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 Revenues Department  FTE Adjustment Adjustment ENTERPRISE FUNDS AIRPORT ENTERPRISE FUND (530) Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   36,112$                   Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (36,112)$                  AIRPORT ENTERPRISE FUND (530) SUBTOTAL                  ‐   ‐$                    ‐$                          UTILITIES ADMINISTRATION FUND (521) Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   121,124$                 Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (121,124)$                UTILITIES ADMINISTRATION FUND (521) SUBTOTAL                  ‐   ‐$                    ‐$                          ELECTRIC FUND (513 & 523) Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for two vehicles in the Utilities Department to be replaced by two all‐electric Ford  Ranger Small Pickup Trucks. It is part of an action that was deferred by Council during FY 2024 Budget  Adoption to allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water  Funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)                  ‐    ‐$                   160,000$                 Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   748,983$                 Utilities Technical Adjust: Net Sales Revenue/Electric Commodity Adjustments This one‐time action aligns the Electric commodity purchase and sales budget with a net increase of  $25.0 million to the Electric Fund, reflecting the updated forecasts as of November 2023. The reduction  of $11.2 million in expenses is attributed to lower power revenue requirements for Base Resource  customers, reduced CVPIA Restoration Fund charges, and decreased market purchase costs due to  significantly higher hydro output. The $13.8 million increase in revenue is due to surplus sales revenue  and improved hydro conditions, enabling the sale of excess renewable energy credits. (Ongoing costs:  $0)                  ‐   13,818,733$     (11,226,940)$          Utilities Technical Adjust: Year‐end Cleanup Equity Transfer to General Fund This action also includes a decrease to the electric equity transfer by $0.2 million to adjust the FY23  year‐end amount from $14.5 million to $14.3 million based on a reduced PG&E Return on Equity  estimate from 10.25% to 10.00%. (Ongoing costs: $0)                  ‐    ‐$                   (215,000)$                Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   24,351,690$            ELECTRIC FUND (513 & 523) SUBTOTAL                  ‐   13,818,733$     13,818,733$            FIBER OPTICS FUND (533) Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   38,182$                   Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (38,182)$                  FIBER OPTICS FUND (533) SUBTOTAL                  ‐   ‐$                    ‐$                          CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 Revenues Department  FTE Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 GAS FUND (514 & 524) Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for a vehicle in the Utilities Department to be replaced by an all‐electric Ford F‐150. It  is part of an action that was deferred by Council during FY 2024 Budget Adoption to allocate $1.3  million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow for  additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)                  ‐    ‐$                   80,000$                   Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   284,498$                 Utilities Technical Adjust: Water, Gas, Wastewater Operating Transfer Technical Clean Up This one‐time action corrects the transfers between the Gas and Water Funds from FY2018 to FY2022  for a shared recurring project, WS‐02014 WGW Utility GIS Data. In 2018, a change in fund transfer  methodology to collect the Gas portion of the project changed for more visibility on the fund transfers,  and the action to terminate the former method was overlooked. (Ongoing costs: $0)                  ‐   728,920$           ‐$                          Utilities Technical Adjust: Year‐end Cleanup Equity Transfer to General Fund This mid‐year action increases the gas equity transfer by $0.5 million to adjust the FY23 year end  amount from $6.7 million to $7.2 million per the staff report on April 17, 2023 to Council (CMR 2303‐ 1219). (Ongoing costs: $0)                  ‐    ‐$                   508,000$                 Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (143,578)$                GAS FUND (514 & 524) SUBTOTAL                  ‐   728,920$          728,920$                 REFUSE FUND (525) Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   90,253$                   Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (90,253)$                  REFUSE FUND (525) SUBTOTAL                  ‐   ‐$                    ‐$                          STORMWATER MANGEMENT FUND (528) Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   85,132$                   Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (85,132)$                  STORMWATER MANGEMENT FUND (528) SUBTOTAL                  ‐   ‐$                    ‐$                          Revenues Department  FTE Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 WASTEWATER COLLECTION FUND (527) Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for one vehicle in the Utilities Department to be replaced by an all‐electric GMC 6yrd  Dump Truck and another vehicle to be replaced by an all‐electric Ford F‐150 Truck. It is part of an action  that was deferred by Council during FY24 Budget Adoption to allocate $1.3 million across the General,  Electric, Gas, Wastewater Collection, and Water Funds to allow for additional FY 2024 vehicle  replacements to be all‐electric. (Ongoing costs: $0)                  ‐    ‐$                   530,000$                 Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   142,032$                 Utilities Technical Adjust: Water, Gas, Wastewater Operating Transfer Technical Clean Up This one‐time action corrects the transfers between the Wastewater Collection and Water Funds from  FY2018 to FY2022 for a shared recurring project, WS‐02014 WGW Utility GIS Data. In 2018, a change in  fund transfer methodology to collect the Gas portion of the project changed for more visibility on the  fund transfers, and the action to terminate the former method was overlooked. (Ongoing costs: $0) 850,288$           Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   178,256$                 WASTEWATER COLLECTION FUND (527) SUBTOTAL                  ‐   850,288$          850,288$                 WASTEWATER TREATMENT FUND (526) Capital Capital Improvement Project Adjustments    This action reflects the combined impact from adjustments to projects as outlined in Attachment A,  Exhibit 2.                  ‐   (3,010,000)$      (2,578,200)$             Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                       423,325$                 Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (855,125)$                WASTEWATER TREATMENT FUND (526) SUBTOTAL                  ‐   (3,010,000)$     (3,010,000)$            WATER FUND (522) Utilities FY 2024 Budget Council Priority: Fleet Electrification This action allows for a vehicle in the Utilities Department to be replaced by an all‐electric GMC 6yrd  Dump Truck. It is part of an action that was deferred by Council during FY24 Budget Adoption to  allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow  for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)                  ‐    ‐$                   450,000$                 Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the  City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to  "catch up" to General Fund contribution levels. (Ongoing costs: $0)                  ‐    ‐$                   255,461$                 Utilities Water, Gas, Wastewater Operating Transfer Technical Clean Up This one‐time action corrects the fund transfers from FY2018 to FY2022 for a shared recurring project,  WS‐02014 WGW Utility GIS Data, decreasing the Water Fund by $1,579,209; increasing $850,288 to the  Wastewater Fund and $728,920 to the Gas Fund. (Ongoing costs: $0)                  ‐    ‐$                   1,579,209$              Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                  ‐    ‐$                   (2,284,670)$             WATER FUND (522) SUBTOTAL ‐$                    ‐$                          Revenues Department  FTE Adjustment Adjustment INTERNAL SERVICE FUNDS GENERAL BENEFITS FUND (687) Non‐ Departmental Technical Adjust: Transfer from the General Fund for Supplemental Pension Contributions This net‐neutral action recognizes a transfer of $1.7 million from the General Fund to increase  the contribution to the City's Section 115 Pension Trust Fund, as approved by the City Council  in the FY 2023 Annual Comprehensive Financial Report (ACFR). A corresponding adjustment is  made to recognize pension expense. This brings total contributions to $73.3 million through FY  2024 ($47.5 million from the General Fund). Staff will include proportional contributions from  other funds as part of the FY 2024 year‐end or FY 2025 Proposed Budget process. (Ongoing  costs: $0)                 ‐   1,700,000$       1,700,000$              Non‐ Departmental Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the  contributions to the City's Section 115 Pension Trust Fund. This represents a proportional  contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing  costs: $0)                 ‐    ‐$                   2,776,676$              Non‐ Departmental Technical Adjust: Supplemental Pension Contributions  This action increases contributions to the City's Section 115 Pension Trust Fund by $1.2  million. These savings represents amounts collected from departments that exceeded annual  required payments in the respective fiscal year and remain unspent in the General Benefits  Fund. (Ongoing costs: $0)                 ‐    ‐$                   1,200,000$              Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                 ‐    ‐$                   (3,976,676)$             GENERAL BENEFITS FUND (687) SUBTOTAL                 ‐   1,700,000$       1,700,000$              GENERAL LIABILITIES INSURANCE FUND (689) Human  Resources Technical Adjust: Umbrella Excess Liability Insurance Expense This action increases the estimate for umbrella excess liability insurance to align with higher than anticipated premium costs, from $4.2 million to $4.4 million. (Ongoing costs:  $0)                 ‐    ‐$                   196,000$                  Human  Resources Technical Adjust: Property Loss Insurance Expense This action increases the estimate for property loss insurance to align with higher than  anticipated premium costs, from $0.8 million to $0.9 million. (Ongoing costs: $0)                 ‐    ‐$                   159,000$                  Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                 ‐    ‐$                   (355,000)$                GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL                 ‐   ‐$                    ‐$                          INFORMATION TECHNOLOGY FUND (682) Information  Technology Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the  contributions to the City's Section 115 Pension Trust Fund. This represents a proportional  contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing  costs: $0)                 ‐    ‐$                   368,589$                  Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                 ‐    ‐$                   (368,589)$                INFORMATION TECHNOLOGY FUND (682) SUBTOTAL                 ‐   ‐$                    ‐$                          CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 Revenues Department  FTE Adjustment Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO Expenses ATTACHMENT A, EXHIBIT 1 PRINT AND MAIL SERVICES FUND (683) Administrative  Services Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the  contributions to the City's Section 115 Pension Trust Fund. This represents a proportional  contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing  costs: $0)                 ‐    ‐$                   8,906$                      Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                 ‐    ‐$                   (8,906)$                     PRINT AND MAIL SERVICES FUND (683) SUBTOTAL                 ‐   ‐$                    ‐$                          VEHICLE REPLACEMENT & MAINTENANCE FUND (681) Public Works Fleet Electrification This action, which was deferred by Council during FY24 Budget Adoption, allows for 9  additional FY 2024 vehicle replacements to be all‐electric: 3 Ford F‐150s, 2 GMC 6yrd Dump  Trucks, 2 Ford Ranger Small Pickup Trucks, and 2 Chevy Blazers. The cost of $1.3 million is  spread across 5 funds (General Fund, Electric Fund, Gas Fund, Wastewater Collection Fund,  and Water Fund) in the Community Services, Planning and Development Services, and Utilities  Departments, with $130,000 in the General Fund. (Ongoing costs: $0)                 ‐   1,350,000$       1,350,000$              Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the  contributions to the City's Section 115 Pension Trust Fund. This represents a proportional  contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing  costs: $0)                 ‐    ‐$                   114,486$                  Planning and  Development Recommended Funding: Code Enforcement Supervisor Vehicle This action allocates $64,000 for a new electric Chevy Blazer for the Code Enforcement  Supervisor position added as part of the FY 2024 Adopted Budget. The Department has  attempted to use a shared vehicle; however, this position manages the City's more complex  enforcement cases and builds relationships with the community and partner departments  which supports a dedicated electric vehicle for daily off‐site duties. (Ongoing costs: $0)                 ‐   64,000$             64,000$                    Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                 ‐    ‐$                   (114,486)$                VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL                 ‐   1,414,000$       1,414,000$              WORKERS' COMPENSATION FUND (688) Non‐ Departmental Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the  contributions to the City's Section 115 Pension Trust Fund. This represents a proportional  contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing  costs: $0)                 ‐    ‐$                   11,246$                    Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                 ‐    ‐$                   (11,246)$                   WORKERS' COMPENSATION FUND (688) SUBTOTAL ‐$                    ‐$                          Revenues Department  FTE Adjustment Adjustment SPECIAL REVENUE FUNDS PUBLIC ART FUND (207) Community  Services Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   6,411$                      Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                   (6,411)$                    PUBLIC ART FUND (207) SUBTOTAL                        ‐   ‐$                    ‐$                          GAS TAX FUND (231) Public Works Technical Adjust: Gas Tax Revenues/Transfers to the Capital Improvement Fund for Streets  Improvement Project (PE‐86070) This action reduces Fund 231 Gas Tax revenue by $16,194, and reduces the transfer to the Capital  Improvement Fund by $16,194 for the Streets Improvement project (PE‐86070). This is based on  the State's updated January HUTA and SB1 gas tax revenue estimates. (Ongoing costs: $0)                        ‐   (16,194)$           (16,194)$                  Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                    ‐$                          GAS TAX FUND (231) SUBTOTAL                        ‐   (16,194)$           (16,194)$                  COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) Planning and  Development Technical Adjust: Transfer to Capital Improvement Fund  This action aligns the FY24 Budget with the FY23‐24 CDBG Annual Action Plan by recognizing a  transfer from CDBG to the Capital Improvement Fund for the Sidewalk Repairs project (PO‐89003).                        ‐    ‐$                   211,673$                 Planning and  Development Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   660$                         Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                   (212,333)$                COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL                        ‐   ‐$                    ‐$                          CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Expenses ATTACHMENT A, EXHIBIT 1 Revenues Department  FTE Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Expenses ATTACHMENT A, EXHIBIT 1 HOUSING IN‐LIEU/RESIDENTIAL (233) Planning and  Development Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   990$                         Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                   (990)$                        HOUSING IN‐LIEU/RESIDENTIAL (233) SUBTOTAL                        ‐   ‐$                    ‐$                          HOUSING IN‐LIEU/COMMERCIAL (234) Planning and  Development Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   990$                         Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                   (990)$                        HOUSING IN‐LIEU/COMMERCIAL (234) SUBTOTAL                        ‐   ‐$                    ‐$                          UNIVERSITY AVENUE FUND (236) Office of  Transportation Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   1,976$                      Administrative  Services Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   5,073$                      Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   14,955$                   Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                   (22,004)$                  UNIVERSITY AVENUE FUND (236) SUBTOTAL                        ‐   ‐$                    ‐$                          Revenues Department  FTE Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Expenses ATTACHMENT A, EXHIBIT 1 CALIFORNIA AVENUE FUND (237) Office of  Transportation Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   1,976$                      Administrative  Services Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   2,177$                      Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   1,750$                      Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                   (5,903)$                    CALIFORNIA AVENUE FUND (237) SUBTOTAL                        ‐   ‐$                    ‐$                          RESIDENTIAL PARKING PERMIT FUND (239) Office of  Transportation Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund) This action recognizes a transfer of $2.8 million from various funds to increase the contributions to  the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other  funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)                        ‐    ‐$                   11,392$                   Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report.                        ‐    ‐$                   (11,392)$                  RESIDENTIAL PARKING PERMIT FUND (239) SUBTOTAL                        ‐   ‐$                    ‐$                          Project Number Title Revenue Expense Comments PF‐93009 Americans With Disabilities Act  Compliance  $‐  $          (332,551)This action is a technical correction to align FY  2024 budgets with FY 2023 actual financial  activity. There is no change to the project  schedule or scope. FD‐21000 Automated External Defibrillator  Replacement  $            (38,000) $‐ This action removes all remaining funding  because the project has been completed. FD‐22000 Extrication Tool Replacement  $            (20,845) $            (79,513)This action removes all remaining funding  because the project has been completed. PE‐18004 Fire Station 4  $       (5,200,000) $‐ This action removes revenue budgeted in FY  2024 because it was received in FY 2023 and  reserved in the fund balance. PE‐11011 Highway 101 Pestrian/Bicycle Overpass  $‐  $            (87,105)This action is a technical correction to align FY  2024 budgets with FY 2023 actual financial  activity. There is no change to the project  schedule or scope. PE‐12011 Newell Rd/SFC Bridge Replacement  $       (3,365,799) $       (3,365,799)This action is a technical correction to align FY  2024 budgets with FY 2023 actual financial  activity. There is no change to the project  schedule or scope. PL‐17001 Railroad Grade Separation and Safety  Improvements  $          (935,333) $       (3,995,937)The expense action is a technical correction to  align FY 2024 budgets with FY 2023 actual  financial activity, with no change to the project  schedule or scope; the revenue action  reallocates Measure B revenue to PL‐05030 and  PL‐12000 as approved by VTA. PF‐23001 Roth Building Rehabilitation  $            387,590   $            587,590  This action adds County grant revenue ($0.4  million) for work on the Roth Building's windows  and roof. Interest earnings on Transfer  Development Rights funding ($0.2 million)  reserved for this project is also appropriated.  PO‐11000 Sign Reflectivity Upgrade  $‐  $          (110,000)This action is a technical correction to align FY  2024 budgets with FY 2023 actual financial  activity. There is no change to the project  schedule or scope. PE‐86070 Street Maintenance  $            (16,194) $            (16,194)This action aligns the FY 2024 budget with the  State's updated January HUTA & SB1 Gas Tax  revenue estimates. PL‐05030 Traffic Signal and Intelligent  Transportation Systems  $            701,500   $          (157,058)The expense action is a technical correction to  align FY 2024 budgets with FY 2023 actual  financial activity, with no change to the project  schedule or scope; the revenue action adds  Measure B revenue reallocated from PL‐17001  as approved by VTA. PL‐12000 Transportation and Parking Improvements  $            233,833   $‐ This action adds Measure B revenue reallocated  from PL‐17001 as approved by VTA. Total  $       (8,253,248) $       (7,556,567) WQ‐19003 Advanced Water Purification Facility  $          (500,000) $‐ This action is a technical correction to align FY  2024 budgets with FY 2023 actual financial  activity. There is no change to the project  schedule or scope. WQ‐14002 Laboratory & Environmental Svcs Bldg  $       (2,510,000) $       (2,578,200)This action is a technical correction to align FY  2024 budgets with FY 2023 actual financial  activity. There is no change to the project  schedule or scope. Total  $       (3,010,000) $       (2,578,200) TOTAL CIP ADJUSTMENTS  $    (11,263,248) $    (10,134,767) CITY OF PALO ALTO WASTEWATER TREATMENT FUND ATTACHMENT A, EXHIBIT 2 CAPITAL IMPROVEMENT FUND TABLE OF ORGANIZATION Table of Organization Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % General Fund Administrative Services Account Specialist 4.63 4.13 4.13 4.13 ——% Account Specialist-Lead 3.45 3.45 3.45 3.45 ——% Accountant 3.00 2.00 2.00 2.00 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 1.00 0.50 0.50 1.00 0.50 100.0% Administrative Associate III 1.00 1.00 1.00 1.00 ——% Assistant Director Administrative Services 1.65 1.65 1.65 1.65 ——% Buyer 1.00 2.00 2.00 2.00 ——% Chief Procurement Officer 1.00 1.00 1.00 1.00 ——% Contracts Administrator 2.70 1.70 2.70 3.70 1.00 37.0% Director Administrative Services/CFO 0.80 0.80 0.80 0.80 ——% Director Office of Management and Budget 1.00 1.00 1.00 1.00 ——% Management Analyst 2.00 2.00 2.00 2.00 ——% Manager Budget 2.00 2.00 2.00 2.00 ——% Manager Real Property 1.00 1.00 1.00 1.00 ——% Manager Revenue Collections 0.62 0.62 0.62 0.62 ——% Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 ——% Manager, Finance 1.00 1.00 1.00 1.00 ——% Payroll Analyst 2.00 2.00 2.00 2.00 ——% Performance Auditor II 1.00 —————% Senior Accountant 3.00 3.00 3.00 3.00 ——% Senior Buyer 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 2.30 2.30 2.30 2.30 ——% Storekeeper 1.00 1.00 2.00 2.00 ——% 1 ATTACHMENT B TABLE OF ORGANIZATION Storekeeper-Lead 0.20 0.20 0.20 0.20 ——% Warehouse Supervisor 0.20 0.20 0.20 0.20 ——% Total Administrative Services 40.15 37.15 39.15 40.65 1.50 3.8% City Attorney Assistant City Attorney 3.00 3.00 4.00 4.00 ——% Chief Assistant City Attorney 1.00 1.00 1.00 1.00 ——% City Attorney 1.00 1.00 1.00 1.00 ——% Claims Investigator 1.00 1.00 1.00 1.00 ——% Deputy City Attorney 1.00 1.00 —0.50 0.50 —% Legal Fellow 1.00 1.00 1.00 1.00 ——% Secretary to City Attorney 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Total City Attorney 10.00 10.00 10.00 10.50 0.50 5.0% City Auditor City Auditor 1.00 —————% Senior Performance Auditor 2.00 —————% Total City Auditor 3.00 —————% City Clerk Administrative Associate III 2.00 2.00 2.00 2.00 ——% Assistant City Clerk 1.00 1.00 1.00 2.00 1.00 100.0% City Clerk 1.00 1.00 1.00 1.00 ——% Deputy City Clerk 1.00 1.00 1.00 —(1.00)(100.0)% Total City Clerk 5.00 5.00 5.00 5.00 ——% City Manager Administrative Assistant 2.00 2.00 2.00 3.00 1.00 50.0% Assistant City Manager 1.00 1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 2 ATTACHMENT B TABLE OF ORGANIZATION Assistant to the City Manager 2.00 1.00 3.00 3.00 ——% Chief Communications Officer 1.00 1.00 1.00 1.00 ——% City Manager 1.00 1.00 1.00 1.00 ——% Deputy City Manager 1.00 1.00 1.00 1.00 ——% Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 ——% Manager Communications 1.00 1.00 1.00 1.00 ——% Senior Management Analyst ——1.00 1.00 ——% Total City Manager 10.00 9.00 12.00 13.00 1.00 8.3% Community Services Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate III 1.00 —————% Assistant Director Community Services 2.00 1.00 1.00 2.00 1.00 100.0% Building Serviceperson 1.00 1.00 1.00 2.00 1.00 100.0% Building Serviceperson-Lead 0.60 0.60 0.60 2.00 1.40 233.3% Coordinator Recreation Programs 4.00 4.00 4.00 5.75 1.75 43.8% Director Community Services 1.00 1.00 1.00 1.00 ——% Division Manager Open Space, Parks & Golf*———1.00 1.00 —% Heavy Equipment Operator 0.07 —————% Inspector, Field Services 2.00 2.00 2.00 2.00 ——% Junior Museum & Zoo Educator*3.60 3.25 4.10 4.85 0.75 18.3% Management Analyst 1.00 1.00 1.00 1.00 ——% Management Assistant 1.00 1.00 1.00 1.00 ——% Manager Community Services 5.00 5.00 5.00 5.00 ——% Manager Community Services Senior Program 4.00 4.00 4.00 4.00 ——% Manager Human Services 1.00 1.00 1.00 1.00 ——% Park Maintenance Person 6.00 6.00 6.00 6.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 3 ATTACHMENT B TABLE OF ORGANIZATION Park Maintenance-Lead 1.00 1.00 1.00 1.00 ——% Park Ranger 5.00 5.00 6.00 6.00 ——% Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 ——% Producer Arts/Science Program 12.00 11.00 12.25 9.50 (2.75)(24.4)% Program Assistant I 7.00 3.00 3.00 3.75 0.75 25.0% Program Assistant II 4.00 4.00 4.00 4.00 ——% Project Manager 0.10 0.10 0.10 0.10 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Sprinkler System Representative 4.00 4.00 4.00 4.00 ——% Superintendent Community Services 2.00 2.00 2.00 2.00 ——% Superintendent Recreation 1.00 —————% Theater Specialist 2.00 2.00 2.00 5.00 3.00 150.0% WGW Heavy Equipment Operator —0.07 0.07 0.07 ——% Total Community Services 75.37 67.02 70.12 78.02 7.90 11.3% Fire 40-Hour Captain ——0.20 0.20 ——% 40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 ——% 40-Hour Training Captain 1.00 1.00 1.00 1.00 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 2.20 2.20 2.20 2.20 ——% Administrative Associate III ——0.20 0.20 ——% Battalion Chief 3.00 3.00 3.00 3.00 ——% Business Analyst 0.80 0.80 0.80 0.80 ——% Deputy Chief/Fire Marshal 0.05 0.05 ————% Deputy Director Technical Services Division 0.20 —0.20 0.20 ——% Deputy Fire Chief 2.00 1.00 2.00 2.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 4 ATTACHMENT B TABLE OF ORGANIZATION Emergency Medical Service Director 1.00 1.00 1.00 1.00 ——% Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 ——% Fire Apparatus Operator 26.00 26.00 26.00 26.00 ——% Fire Captain 21.00 20.00 20.00 20.00 ——% Fire Chief 1.00 1.00 1.00 1.00 ——% Fire Fighter 34.00 29.00 34.00 34.00 ——% Fire Fighter Trainee ——3.00 3.00 ——% Fire Inspector 0.80 0.40 0.40 2.40 2.00 500.0% Fire Marshal ——0.05 0.05 ——% Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——% Hazardous Materials Inspector 0.30 0.30 0.70 0.70 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Total Fire 97.85 90.25 100.25 102.25 2.00 2.0% Human Resources Administrative Assistant ———0.75 0.75 —% Assistant Director Human Resources 1.00 1.00 1.00 1.00 ——% Director Human Resources/CPO 1.00 1.00 1.00 1.00 ——% Human Resources Representative 3.00 2.00 2.00 4.00 2.00 100.0% Human Resources Technician 4.00 3.00 4.00 2.00 (2.00)(50.0)% Manager Employee Benefits 1.00 1.00 1.00 1.00 ——% Manager Employee Relations 1.00 1.00 1.00 1.00 ——% Senior Human Resources Administrator 3.00 3.00 3.00 4.00 1.00 33.3% Senior Management Analyst 2.00 2.00 2.00 2.00 ——% Total Human Resources 16.00 14.00 15.00 16.75 1.75 11.7% Library Administrative Assistant ———1.00 1.00 —% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 5 ATTACHMENT B TABLE OF ORGANIZATION Administrative Associate III 1.00 —1.00 —(1.00)(100.0)% Assistant Director Library Services 1.00 —1.00 —(1.00)(100.0)% Business Analyst 1.00 1.00 1.00 —(1.00)(100.0)% Coordinator Library Programs 1.00 1.00 2.00 5.00 3.00 150.0% Director Libraries 1.00 1.00 1.00 1.00 ——% Division Head Library Services 1.00 1.00 1.00 2.00 1.00 100.0% Librarian 6.00 6.00 7.00 4.00 (3.00)(42.9)% Library Associate 7.00 6.00 6.00 10.00 4.00 66.7% Library Specialist 11.50 10.50 12.50 8.00 (4.50)(36.0)% Management Analyst 1.00 1.00 1.00 1.00 ——% Manager Library Services 3.00 3.00 3.00 3.00 ——% Senior Business Analyst ———1.00 1.00 —% Senior Librarian 8.00 6.00 6.00 8.00 2.00 33.3% Supervising Librarian 4.00 4.00 4.00 5.00 1.00 25.0% Total Library 46.50 40.50 46.50 49.00 2.50 5.4% Office of Emergency Services Director Office of Emergency Services 1.00 1.00 1.00 1.00 ——% Office of Emergency Services Coordinator 1.00 1.00 1.00 2.00 1.00 100.0% Program Assistant II 1.00 —————% Total Office of Emergency Services 3.00 2.00 2.00 3.00 1.00 50.0% Office of Transportation Administrative Assistant 0.50 0.60 0.60 0.60 ——% Associate Engineer 0.30 0.35 0.35 0.35 ——% Associate Planner 0.45 0.40 0.40 0.40 ——% Chief Transportation Official 0.70 0.70 0.70 0.70 ——% Coordinator Transportation Systems Management 1.25 0.65 0.65 0.65 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 6 ATTACHMENT B TABLE OF ORGANIZATION Management Analyst*0.50 0.50 0.50 —(0.50)(100.0)% Parking Operations-Lead —0.05 0.05 0.05 ——% Project Engineer 0.45 0.25 0.25 0.25 ——% Senior Engineer 0.20 0.20 0.55 0.55 ——% Senior Management Analyst*———0.50 0.50 —% Senior Planner 0.50 0.15 0.15 1.40 1.25 833.3% Traffic Engineering-Lead 0.35 0.35 ————% Transportation Planning Manager 1.15 1.00 1.00 1.00 ——% Total Office of Transportation 6.35 5.20 5.20 6.45 1.25 24.0% Planning and Development Services 40-Hour Captain ——0.80 0.80 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate I 1.00 1.00 1.00 —(1.00)(100.0)% Administrative Associate II*2.80 2.80 2.80 0.80 (2.00)(71.4)% Administrative Associate III*4.00 3.00 4.80 7.80 3.00 62.5% Assistant Chief Building Official***1.00 1.00 2.00 1.00 (1.00)(50.0)% Assistant Director PCE 1.00 1.00 1.00 1.00 ——% Associate Engineer 0.20 ——0.50 0.50 —% Associate Planner 3.00 3.25 1.25 1.25 ——% Building Inspector Specialist 6.00 6.00 8.00 —(8.00)(100.0)% Building/Planning Technician 3.00 2.00 2.50 2.50 ——% Chief Building Official 1.00 1.00 1.00 1.00 ——% Chief Planning Official 1.00 1.00 1.00 1.00 ——% Code Enforcement Officer 2.00 —1.00 1.00 ——% Code Enforcement-Lead 1.00 1.00 1.00 1.00 ——% Deputy Chief/Fire Marshal 0.80 0.80 ————% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 7 ATTACHMENT B TABLE OF ORGANIZATION Development Project Coordinator II 2.00 2.00 2.00 2.00 ——% Development Project Coordinator III 3.00 3.00 3.00 3.00 ——% Director Planning/Community Environment 1.00 1.00 1.00 1.00 ——% Division Manager Planning***———1.00 ——% Engineer 0.52 0.52 0.52 0.52 ——% Engineering Technician III 1.50 1.50 1.50 1.00 (0.50)(33.3)% Fire Inspector 3.20 1.60 1.60 1.60 ——% Fire Marshal ——0.80 0.80 ——% Hazardous Materials Inspector 1.60 1.60 3.20 3.20 ——% Industrial Waste Investigator 0.35 0.35 0.35 0.35 ——% Inspector, Field Services 0.68 0.68 0.68 0.68 ——% Landscape Architect Park Planner 0.50 0.50 0.50 0.50 ——% Manager Planning 4.00 4.00 4.00 4.00 ——% Planner 4.00 4.00 5.00 5.00 ——% Plans Check Engineer ——1.00 1.00 ——% Principal Planner 2.00 1.00 2.00 2.00 ——% Program Assistant I 1.00 —————% Project Engineer 0.10 —————% Project Manager ——0.50 0.50 ——% Senior Building Inspector**———8.00 8.00 —% Senior Business Analyst 1.00 1.00 1.00 1.00 ——% Senior Engineer 0.40 0.40 0.45 0.45 ——% Senior Management Analyst 2.00 2.00 2.00 2.00 ——% Senior Plan Check Engineer**———2.00 2.00 —% Senior Planner*,***3.60 3.65 4.65 8.65 4.00 86.0% Supervisor Inspection and Surveying 0.25 0.25 0.25 0.25 ——% Supervisor of Code Enforcement**———1.00 1.00 —% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 8 ATTACHMENT B TABLE OF ORGANIZATION Traffic Engineering-Lead 0.10 0.05 ————% Transportation Planning Manager —0.05 0.05 0.05 ——% Total Planning and Development Services 61.60 54.00 65.20 72.20 7.00 10.7% Police Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 3.00 2.00 2.00 3.00 1.00 50.0% Animal Control Officer 3.00 2.00 2.00 2.00 ——% Animal Control Officer-Lead 1.00 1.00 1.00 1.00 ——% Assistant Police Chief 1.00 1.00 1.00 1.00 ——% Business Analyst 1.20 1.20 2.20 2.20 ——% Code Enforcement Officer 1.00 1.00 1.00 1.00 ——% Communications Manager 1.00 —————% Communications Technician 1.00 —————% Community Service Officer 7.50 5.63 5.63 5.63 ——% Court Liaison Officer*1.00 1.00 1.00 2.00 1.00 100.0% Crime Analyst 1.00 1.00 1.00 1.00 ——% Deputy Director Technical Services Division 0.80 —0.80 0.80 ——% Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——% Police Agent 19.00 19.00 19.00 19.00 ——% Police Captain 2.00 2.00 2.00 2.00 ——% Police Chief 1.00 1.00 1.00 1.00 ——% Police Lieutenant 5.00 4.00 4.00 4.00 ——% Police Officer 50.00 39.00 43.00 45.00 2.00 4.7% Police Records Specialist II 6.00 6.00 6.00 6.00 ——% Police Records Specialist-Lead 1.00 1.00 1.00 1.00 ——% Police Sergeant 14.00 14.00 14.00 14.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 9 ATTACHMENT B TABLE OF ORGANIZATION Program Assistant II 1.00 1.00 1.00 1.00 ——% Property Evidence Technician 2.00 2.00 2.00 2.00 ——% Public Safety Communications Manager 1.00 —1.00 1.00 ——% Public Safety Dispatcher 16.00 12.00 14.00 16.00 2.00 14.3% Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 ——% Public Safety Program Manager 2.00 1.00 1.00 1.00 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Total Police 149.00 124.33 133.13 139.13 6.00 4.5% Public Works Administrative Assistant 1.00 0.50 0.50 0.50 ——% Administrative Associate I 0.10 —————% Administrative Associate II 2.65 2.65 2.65 2.65 ——% Administrative Associate III 0.01 —————% Assistant Director Public Works 0.73 0.73 0.73 0.73 ——% Associate Engineer ———0.45 0.45 —% Building Serviceperson-Lead 1.00 1.00 1.00 1.00 ——% Building/Planning Technician ——0.50 0.50 ——% Cement Finisher 2.00 2.00 2.00 2.00 ——% Cement Finisher-Lead 0.26 0.26 0.26 0.26 ——% Coordinator Public Works Projects 1.50 1.50 1.50 1.50 ——% Director Public Works/City Engineer 1.00 1.00 1.00 1.00 ——% Electrician 0.80 0.80 0.80 0.80 ——% Engineer 0.48 0.48 0.48 0.48 ——% Engineering Technician III 1.75 1.75 1.75 1.80 0.05 2.9% Environmental Specialist ——0.33 0.33 ——% Equipment Operator 2.46 2.46 2.46 2.46 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 10 ATTACHMENT B TABLE OF ORGANIZATION Facilities Carpenter 1.00 1.00 1.00 1.00 ——% Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 ——% Facilities Painter 1.75 1.75 1.75 1.75 ——% Facilities Technician 4.05 4.05 4.05 5.05 1.00 24.7% Heavy Equipment Operator 2.33 2.10 2.10 2.10 ——% Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 ——% Inspector, Field Services 0.11 0.11 0.11 0.11 ——% Landscape Architect Park Planner 0.60 0.60 0.60 0.60 ——% Management Analyst 1.45 1.45 0.70 0.70 ——% Manager Environmental Control Program ——0.33 0.33 ——% Manager Facilities 0.90 0.90 0.90 0.90 ——% Manager Maintenance Operations 1.20 1.20 1.20 1.20 ——% Manager Urban Forestry 1.00 1.00 1.00 1.00 ——% Manager Watershed Protection 0.05 0.05 0.05 0.05 ——% Project Manager 2.65 2.00 2.50 2.85 0.35 14.0% Senior Engineer 0.60 0.60 0.60 0.60 ——% Senior Management Analyst 1.11 1.11 1.11 1.11 ——% Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 ——% Surveyor, Public Works 0.33 0.33 0.33 0.33 ——% Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 ——% Traffic Controller Maintainer II 2.00 1.00 1.00 1.00 ——% Tree Maintenance Person 1.00 1.00 1.00 1.00 ——% Tree Trim/Line Clear 7.00 7.00 7.00 7.00 ——% Tree Trim/Line Clear-Lead 1.00 1.00 1.00 1.00 ——% WGW Heavy Equipment Operator —0.23 0.23 0.23 ——% Total Public Works 50.61 48.35 49.26 51.11 1.85 3.8% Total General Fund 574.43 506.80 552.81 587.06 34.25 6.2% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 11 ATTACHMENT B TABLE OF ORGANIZATION Enterprise Fund Public Works Account Specialist 0.30 —————% Accountant 0.40 0.70 0.70 0.70 ——% Administrative Associate I 0.10 —1.00 1.00 ——% Administrative Associate II 2.15 2.15 2.15 2.15 ——% Administrative Associate III 0.10 0.20 0.20 0.20 ——% Airport Specialist II ———2.50 2.50 —% Assistant Director Public Works 1.30 1.30 1.30 1.30 ——% Assistant Manager WQCP 2.00 2.00 2.00 2.00 ——% Associate Engineer 3.00 3.00 3.00 3.05 0.05 1.7% Chemist 3.00 2.00 2.00 3.00 1.00 50.0% Deputy Chief/Fire Marshal 0.07 0.07 ————% Electrician 3.00 3.00 3.00 3.00 ——% Electrician-Lead 2.00 2.00 2.00 2.00 ——% Engineer 0.90 0.90 0.90 1.90 1.00 111.1% Engineering Technician III 0.25 0.25 0.25 0.20 (0.05)(20.0)% Environmental Specialist 2.00 2.00 2.33 2.33 ——% Equipment Operator 0.54 0.54 0.54 0.54 ——% Facilities Maintenance Lead 1.00 1.00 1.00 1.00 ——% Facilities Technician 1.50 1.50 2.50 —(2.50)(100.0)% Fire Marshal ——0.07 0.07 ——% Hazardous Materials Inspector 0.04 0.04 0.04 0.04 ——% Heavy Equipment Operator 0.90 0.90 0.90 0.90 ——% Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 ——% Industrial Waste Inspector 3.00 3.00 3.00 3.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 12 ATTACHMENT B TABLE OF ORGANIZATION Industrial Waste Investigator 1.15 1.15 1.15 1.15 ——% Laboratory Technician WQC 3.00 3.00 3.00 3.00 ——% Landfill Technician 1.00 1.00 1.00 2.00 1.00 100.0% Management Analyst 2.30 2.30 2.30 2.30 ——% Manager Airport 1.00 1.00 1.00 1.00 ——% Manager Environmental Control Program 5.00 5.00 5.33 5.33 ——% Manager Laboratory Services 1.00 1.00 1.00 1.00 ——% Manager Maintenance Operations 1.96 1.96 1.96 1.96 ——% Manager Solid Waste 1.00 1.00 1.00 1.00 ——% Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 ——% Manager Watershed Protection 0.95 0.95 0.95 0.95 ——% Plant Mechanic 7.00 7.00 7.00 7.00 ——% Program Assistant I 1.00 1.00 1.00 1.00 ——% Program Assistant II 2.00 2.00 2.00 2.00 ——% Project Engineer 1.83 1.83 1.83 2.83 1.00 54.6% Project Manager 1.35 1.35 1.35 1.35 ——% Senior Accountant 0.30 0.30 0.30 0.30 ——% Senior Buyer 1.00 1.00 1.00 1.00 ——% Senior Chemist 1.00 2.00 2.00 2.00 ——% Senior Engineer 3.76 3.76 3.76 3.76 ——% Senior Industrial Waste Investigator 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 0.21 0.21 0.21 0.21 ——% Senior Mechanic 1.00 1.00 1.00 1.00 ——% Senior Operator WQC 6.00 6.00 6.00 6.00 ——% Senior Technologist 1.00 1.00 1.00 1.00 ——% Storekeeper 1.00 1.00 1.00 1.00 ——% Street Maintenance Assistant 1.00 1.00 1.00 —(1.00)(100.0)% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 13 ATTACHMENT B TABLE OF ORGANIZATION Street Sweeper Operator 1.63 1.63 1.63 1.63 ——% Supervisor WQCP Operations 3.00 3.00 3.00 3.00 ——% Surveyor, Public Works 0.12 0.12 0.12 0.12 ——% Technologist 1.00 1.00 1.00 1.00 ——% Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 ——% WQC Plant Operator II 16.00 16.00 16.00 16.00 ——% Zero Waste Coordinator 1.00 1.00 1.00 1.00 ——% Total Public Works 101.32 101.32 103.98 106.98 3.00 2.9% Utilities Account Specialist 1.70 1.00 1.00 1.00 ——% Accountant 0.60 1.30 1.30 1.30 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 6.00 6.00 6.00 6.00 ——% Assistant City Attorney ——1.00 2.00 1.00 100.0% Assistant Director Administrative Services 0.25 0.25 0.25 0.25 ——% Assistant Director Sustainability and Climate Action ———1.00 1.00 —% Assistant Director Utilities Customer Support Services 1.00 1.00 1.00 2.00 1.00 100.0% Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 ——% Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 ——% Assistant Director Utilities/Resource Management 1.00 1.00 1.00 1.00 ——% Associate Sustainability Program Administrator ——1.00 1.00 ——% Business Analyst 6.00 6.00 6.00 6.00 ——% Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 ——% Cathodic Technician 1.00 1.00 1.00 1.00 ——% Cement Finisher 2.00 2.00 2.00 2.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 14 ATTACHMENT B TABLE OF ORGANIZATION Contracts Administrator 0.70 0.70 0.70 0.70 ——% Coordinator Utilities Projects 6.00 6.00 8.00 8.00 ——% Customer Service Representative 7.00 7.00 7.00 7.00 ——% Customer Service Specialist 2.00 2.00 2.00 2.00 ——% Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 ——% Deputy Chief/Fire Marshal 0.08 0.08 ————% Deputy City Attorney 1.00 1.00 —0.50 0.50 —% Director Administrative Services/CFO 0.20 0.20 0.20 0.20 ——% Electric Heavy Equipment Operator 2.00 2.00 1.00 1.00 ——% Electric Project Engineer 4.00 4.00 8.00 8.00 ——% Electric Underground Inspector 2.00 2.00 2.00 2.00 ——% Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 ——% Electrical Equipment Technician 1.00 1.00 1.00 1.00 ——% Electrician Assistant I 3.00 3.00 3.00 3.00 ——% Engineer 4.00 4.00 4.00 5.00 1.00 25.0 Engineering Manager - Electric 1.00 1.00 1.00 1.00 ——% Engineering Manager - WGW 1.00 1.00 1.00 1.00 ——% Engineering Technician III 3.00 3.00 3.00 3.00 ——% Environmental Specialist ——0.34 0.34 ——% Equipment Operator ——1.00 1.00 ——% Fire Marshal ——0.08 0.08 ——% Gas and Water Meter Measurement and Control Technician 4.00 4.00 4.00 4.00 ——% Gas and Water Meter Measurement and Control Technician - Lead 1.00 1.00 1.00 1.00 ——% Hazardous Materials Inspector 0.06 0.06 0.06 0.06 ——% Heavy Equipment Operator - Install/Repair 4.00 4.00 4.00 4.00 ——% Human Resources Representative —1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 15 ATTACHMENT B TABLE OF ORGANIZATION Industrial Waste Investigator 0.50 0.50 0.50 0.50 ——% Inspector, Field Services 5.00 —————% Inspector, WGW Utilities Field Svc —5.00 5.00 5.00 ——% Lineperson/Cable Specialist 10.00 10.00 10.00 10.00 ——% Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 ——% Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 ——% Management Analyst ——1.00 1.00 ——% Manager Communications 1.00 1.00 1.00 1.00 ——% Manager Customer Service 1.00 1.00 1.00 1.00 ——% Manager Electric Operations 1.00 1.00 1.00 1.00 ——% Manager Environmental Control Program ——0.34 0.34 ——% Manager Information Technology ———1.00 1.00 —% Manager Treasury, Debt & Investments 0.40 0.40 0.40 0.40 ——% Manager Utilities Compliance 1.00 1.00 1.00 1.00 ——% Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 ——% Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 ——% Manager Utilities Program Services 1.00 1.00 2.00 2.00 ——% Manager Utilities Strategic Business 1.00 1.00 1.00 1.00 ——% Manager Utilities Telecommunications 1.00 1.00 1.00 3.00 2.00 200.0% Meter Reader 6.00 6.00 6.00 5.00 (1.00)(16.7)% Meter Reader-Lead 1.00 1.00 1.00 1.00 ——% Metering Technician 3.00 3.00 2.00 2.00 ——% Metering Technician-Lead 1.00 1.00 1.00 1.00 ——% Offset Equipment Operator 0.48 0.48 0.48 0.48 ——% Overhead Underground Troubleman 2.00 2.00 2.00 2.00 ——% Power Engineer 1.00 1.00 ————% Principal Business Analyst 1.00 1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 16 ATTACHMENT B TABLE OF ORGANIZATION Principal Utilities Program Manager ——1.00 —(1.00)(100.0)% Program Assistant I 1.50 1.50 1.50 2.00 0.50 33.3% Program Assistant II 1.00 1.00 ————% Project Engineer 5.00 5.00 5.00 5.00 ——% Project Manager 0.75 0.75 0.75 0.75 ——% Resource Planner 5.00 5.00 5.00 5.00 ——% Restoration Lead 1.00 1.00 1.00 1.00 ——% SCADA Technologist 2.00 2.00 ————% Senior Accountant 0.70 0.70 0.70 0.70 ——% Senior Business Analyst 3.00 3.00 3.00 3.00 ——% Senior Electrical Engineer 4.00 5.00 5.00 5.00 ——% Senior Engineer 5.00 5.00 6.00 5.00 (1.00)(16.7)% Senior Management Analyst 0.70 0.70 0.70 0.70 ——% Senior Marketing Analyst ———1.00 1.00 —% Senior Mechanic 1.00 1.00 1.00 1.00 ——% Senior Performance Auditor 1.00 —————% Senior Resource Planner 6.50 6.50 7.00 7.00 ——% Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 ——% Senior Utilities System Operator**———1.00 1.00 —% Senior Water Systems Operator 2.00 2.00 2.00 2.00 ——% Storekeeper 1.00 1.00 1.00 1.00 ——% Storekeeper-Lead 0.80 0.80 0.80 0.80 ——% Street Light, Traffic Signal & Fiber Technician 5.00 5.00 4.00 4.00 ——% Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 ——% Substation Electrician 6.00 6.00 6.00 6.00 ——% Substation Electrician-Lead 2.00 2.00 2.00 2.00 ——% Supervising Electric Project Engineer 1.00 —————% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 17 ATTACHMENT B TABLE OF ORGANIZATION Sustainability Programs Administrator —4.00 5.00 5.00 ——% Tree Maintenance Person 1.00 1.00 1.00 1.00 ——% Utilities Chief Operating Officer 1.00 1.00 1.00 1.00 ——% Utilities Compliance Technician 3.00 3.00 3.00 3.00 ——% Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 ——% Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 ——% Utilities Director 1.00 1.00 1.00 1.00 ——% Utilities Engineer Estimator 5.00 5.00 5.00 5.00 ——% Utilities Field Services Representative 5.00 5.00 5.00 5.00 ——% Utilities Install Repair-Lead-Welding Certified 2.00 2.00 3.00 3.00 ——% Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 ——% Utilities Install/Repair 10.00 10.00 10.00 10.00 ——% Utilities Install/Repair Assistant 1.00 1.00 1.00 1.00 ——% Utilities Install/Repair-Lead 5.00 5.00 4.00 4.00 ——% Utilities Key Account Representative 3.00 3.00 3.00 3.00 ——% Utilities Locator 3.00 3.00 3.00 3.00 ——% Utilities Marketing Program Administrator 4.00 —————% Utilities Safety Officer 1.00 1.00 1.00 1.00 ——% Utilities Supervisor 12.00 12.00 12.00 12.00 ——% Utilities System Analyst ——2.00 2.00 ——% Utilities System Operator 5.00 5.00 6.00 5.00 (1.00)(16.7)% Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 ——% Warehouse Supervisor 0.80 0.80 0.80 0.80 ——% Water System Operator II 4.00 4.00 4.00 4.00 ——% WGW Heavy Equipment Operator 4.70 4.70 4.70 4.70 ——% Total Utilities 257.42 257.42 267.60 273.60 6.00 2.2% Total Enterprise Fund 358.74 358.74 371.58 380.58 9.00 2.4% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 18 ATTACHMENT B TABLE OF ORGANIZATION Other Funds Capital Project Fund Administrative Assistant 0.15 0.65 0.65 0.65 ——% Administrative Associate I 0.80 —————% Administrative Associate III 0.89 0.80 0.80 0.80 ——% Assistant Director Public Works 0.72 0.72 0.72 0.72 ——% Associate Engineer 2.50 1.65 1.65 1.65 ——% Associate Planner 0.30 0.35 0.35 0.35 ——% Building Serviceperson 1.00 1.00 1.00 —(1.00)(100.0)% Building Serviceperson-Lead 1.40 1.40 1.40 —(1.40)(100.0)% Cement Finisher-Lead 0.74 0.74 0.74 0.74 ——% Chief Transportation Official 0.30 0.30 0.30 0.30 ——% Contracts Administrator 0.60 0.60 0.60 0.60 ——% Coordinator Public Works Projects 1.30 1.30 1.30 1.30 ——% Coordinator Transportation Systems Management 0.75 1.35 1.35 1.35 ——% Engineer 3.10 2.10 3.10 3.10 ——% Engineering Technician III 0.50 0.50 0.50 0.50 ——% Facilities Technician 1.50 1.50 1.50 1.50 ——% Inspector, Field Services 1.21 1.21 1.21 1.21 ——% Landscape Architect Park Planner 0.90 0.90 0.90 0.90 ——% Management Analyst*0.95 0.95 0.95 0.80 (0.15)(15.8)% Manager Facilities 0.10 0.10 0.10 0.10 ——% Manager Maintenance Operations 0.65 0.65 0.65 0.65 ——% Parking Operations-Lead 0.40 0.30 0.30 0.30 ——% Project Engineer 7.62 7.92 7.92 7.92 ——% Project Manager 1.15 0.80 0.80 1.45 0.65 81.3% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 19 ATTACHMENT B TABLE OF ORGANIZATION Senior Engineer 4.04 4.04 4.64 4.64 ——% Senior Management Analyst*0.60 0.60 0.60 0.75 0.15 25.0% Senior Planner 0.50 0.80 0.80 1.55 0.75 93.8% Supervisor Inspection and Surveying 0.65 0.65 0.65 0.65 ——% Surveyor, Public Works 0.55 0.55 0.55 0.55 ——% Traffic Engineering-Lead 0.55 0.60 ————% Transportation Planning Manager 0.35 0.45 0.45 0.45 ——% Total Capital Project Fund 36.77 35.48 36.48 35.48 (1.00)(2.7)% General Liabilities Insurance Program Fund Senior Management Analyst ———1.00 1.00 —% Total General Liabilities Insurance Program Fund ———1.00 1.00 —% Printing and Mailing Services Manager Revenue Collections 0.10 0.10 0.10 0.10 ——% Offset Equipment Operator 1.52 1.52 1.52 1.52 ——% Total Printing and Mailing Services 1.62 1.62 1.62 1.62 ——% Special Revenue Funds Account Specialist 1.87 1.37 1.37 1.37 ——% Account Specialist-Lead 0.55 0.55 0.55 0.55 ——% Administrative Assistant 0.35 0.25 0.25 0.25 ——% Administrative Associate II 0.20 0.20 0.20 0.20 ——% Associate Planner 0.25 —————% Community Service Officer 0.50 0.37 0.37 0.37 ——% Coordinator Public Works Projects 0.20 0.20 0.20 0.20 ——% Electrician 0.20 0.20 0.20 0.20 ——% Facilities Maintenance-Lead 0.15 0.15 0.15 0.15 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 20 ATTACHMENT B TABLE OF ORGANIZATION Facilities Painter 0.25 0.25 0.25 0.25 ——% Facilities Technician 0.45 0.45 0.45 0.45 ——% Management Analyst*0.35 0.35 0.35 —(0.35)(100.0)% Manager Community Services Senior Program 1.00 1.00 1.00 1.00 ——% Manager Maintenance Operations 0.19 0.19 0.19 0.19 ——% Manager Revenue Collections 0.28 0.28 0.28 0.28 ——% Parking Operations-Lead 0.60 0.65 0.65 0.65 ——% Senior Management Analyst*———0.35 0.35 —% Senior Planner 0.40 0.40 0.40 0.40 ——% Street Maintenance Assistant 2.00 2.00 2.00 2.00 ——% Street Sweeper Operator 0.37 0.37 0.37 0.37 ——% Transportation Planning Manager 0.50 0.50 0.50 0.50 ——% Total Special Revenue Funds 10.66 9.73 9.73 9.73 ——% Technology Fund Administrative Assistant 1.00 1.00 1.00 1.00 ——% Assistant Director Administrative Services 0.10 0.10 0.10 0.10 ——% Business Analyst 1.00 1.00 1.00 1.00 ——% Desktop Technician 6.00 6.00 6.00 6.00 ——% Director Information Technology/CIO 1.00 1.00 1.00 1.00 ——% Management Analyst ———1.00 1.00 —% Manager Information Technology 3.00 3.00 3.00 3.00 ——% Manager Information Technology Security 1.00 —————% Principal Business Analyst 1.00 —————% Senior Business Analyst 2.00 2.00 2.00 2.00 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Senior Technologist*18.00 14.00 16.00 17.00 1.00 6.3% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 21 ATTACHMENT B TABLE OF ORGANIZATION *The FY 2023 Adopted Budget does not include City Council actions to amend staffing levels approved in the FY 2023 Mid-Year Budget Review (CMR 2212-0515). These positions appear as a base adjustment in the FY 2024 Adopted Budget. **The FY 2024 Budget includes new job classifications that require completion of appropriate review and potential discussions with bargaining groups. Proposals in this budget include estimated funding levels for financial planning purposes only and do not reflect the final terms of the proposed classifications. ***Adjustments recommended in the FY 2024 Midyear Budget Review (2311-2233). Technologist 1.00 —————% Total Technology Fund 36.10 29.10 31.10 33.10 2.00 6.4% Vehicle Replacement and Maintenance Fund Assistant Director Public Works 0.25 0.25 0.25 0.25 ——% Assistant Fleet Manager 1.00 1.00 1.00 1.00 ——% Equipment Maintenance Service Person 2.00 1.00 1.00 2.00 1.00 100.0% Fleet Services Coordinator 1.00 1.00 1.00 2.00 1.00 100.0% Management Analyst 0.20 0.20 0.20 0.20 ——% Management Assistant 1.00 1.00 1.00 1.00 ——% Manager Fleet 1.00 1.00 1.00 1.00 ——% Motor Equipment Mechanic II 6.00 5.00 5.00 5.00 ——% Motor Equipment Mechanic-Lead 2.00 2.00 2.00 1.00 (1.00)(50.0)% Project Manager 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 0.08 0.08 0.08 0.08 ——% Total Vehicle Replacement and Maintenance Fund 15.53 13.53 13.53 14.53 1.00 7.4% Workers' Compensation Program Fund Senior Human Resources Administrator 1.00 1.00 1.00 1.00 ——% Total Workers’ Compensation Program Fund 1.00 1.00 1.00 1.00 ——% Total Other Funds 101.68 90.46 93.46 96.46 3.00 3.2% Total Citywide Positions 1,034.85 956.00 1,017.85 1,064.10 46.25 4.5% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adjusted Budget*** FY 2024 Change FTE FY 2024 Change % 22 ATTACHMENT B  Attachment C  Attachment C – Page 1 of 7    Preliminary FY 2024 2nd Quarter Financial Status  General Fund  Overall, the General Fund is tracking closely to adopted estimated revenues and at or below  adopted expenses. Actual total revenue increased slightly compared to the same period in fiscal  year 2023. Though data continues to be uncertain as 2nd Quarter data will not be finalized until  March 2024, staff believe recommended adjustments are measured and align more closely with  the current financial outlook.     Revenues  The FY 2024 Adopted revenue budget totals $237.1 million (excluding Operating Transfers‐in),  of which $93.3 million or 38.4% of the budget, has been collected as of the end of the 2nd  quarter. Overall, tax revenue estimates in the FY 2024 Adopted budget are $ 10 million higher  than the FY 2023 Adjusted revenue, from approximately $141 million to $151 million.  Adjustments to align revenue with estimates included in the FY 2025‐2034 Long Range Financial  Forecast are recommended in this Mid‐Year Budget Report, including adjustments for Sales Tax  ($1.6 million increase), Utility Users Tax (UUT) ($1.2 million increase), Investment Earnings ($1.1  million increase), and Property Tax ($0.8 million increase), partially offset by Transient  Occupancy Tax (TOT) ($1.3 million decrease) and Documentary Transfer Tax (DTT) ($0.1 million  decrease) based on trends experienced in the first half of FY 2024.     Table 2 below outlines General Fund revenue performance, as of the end of the 2nd quarter,  compared to the adjusted budget. The adjusted budget does not assume staff’s recommended  adjustments presented in this Mid‐Year report.    Table 2    Revenues Inc / (Dec) % change FY 2024 % FY 2023 %   Property Tax $929 4.8% $63,785 32.0% $59,770 32.6% Sales Tax 1,041         8.9% 36,272     35.1% 32,580     35.8% Charges for Services (792)            ‐5.2% 35,131     40.7% 30,786     49.1% Transient Occupancy Tax 670            6.8% 26,834     39.1% 18,199     53.9% Utility User Tax 539            6.7% 18,457     46.3% 15,579     51.4% Permits and Licenses 2,087         66.9% 10,256     50.8% 9,794       31.9% Documentary Transfer Tax 327            13.3% 5,920       47.1% 7,217       34.1% Business Tax ‐     ‐              ‐         1,660       0.0%‐            0.0% All Other Revenue Sources (2,267)        ‐10.7% 44,856     42.2% 41,851     50.7%   Total Revenue 2,534         2.8% $243,171 38.4% $215,776 42.1% General Fund Revenue FY 2024 2nd Quarter  YTD (000's) 2nd Quarter Actuals Adjusted Budget FY 2024 FY 2023 $20,428 $19,499 12,715      11,674    14,313      15,105    10,479      9,809      8,550        8,011      $93,421 $90,887 5,208        3,121      2,791        2,464      18,937      21,204    ‐               Attachment C  Attachment C – Page 2 of 7  Property Tax  The FY 2024 Adopted Budget is $63.8 million, a $0.7 million or 1.1% increase from the FY 2023  actual receipts of $63.1 million. Transfer of ownership has been a significant driver of growth;  however, this growth is expected to moderate due to economic slowdown and higher mortgage  interest rates. For example, the median sales price for a single‐family residential home in the 1st  quarter declined by 3% compared to the previous quarter. Staff recommends a modest $0.8  million increase in this Mid‐Year report.    As of the end of FY 2023, the reserve for Excess Education Revenue Augmentation Fund (ERAF),  representing the at‐risk amount related to the State Controller’s Office auditing finding on  Marin County, totaled $4.1 million. As of December 2023, the State Controller’s Office has  issued a negative audit finding against Marin County. The state’s assertion is former  Redevelopment Agency funds, which are now part of the regular property taxes, should be  excluded from the excess ERAF calculation. Marin County is challenging this finding and in late‐ December 2023, the County of Santa Clara filed a lawsuit against the State Controller’s Office  on this. The estimate is, if this audit finding is sustained, 22% of excess ERAF is at risk for fiscal  years 2021, 2022, 2023 and 2024. If the finding holds, the County of Santa Clara, as well as  other Excess ERAF counties, could face similar audit findings likely starting in FY 2025. This  reserve is consistent with prior year methodology of assumptions for this challenge.    Sales Tax  The FY 2024 Adopted Budget is $36.3 million, a slight decrease of 1.6% compared to the actual Sales Tax  receipts of $36.9 million in FY Sale Tax for the first four months of FY 2024 is 8.9% higher than the  same period of the prior year. During this period, inflation is still elevated but declining and  consumer spending has remained steady. The expectation is that consumer spending growth  will slow down but remain strong, so Sales Tax is anticipated to generate more than the  conservatively budgeted amount in FY 2024. Staff recommends increasing the budget by $1.6  million in this report.    Transient Occupancy Tax (TOT)  The FY 2024 Adopted Budget assumed an estimate of $26.8 million, a 5.1% increase from FY  2023 actual receipts of $25.5 million and slightly lower than the pre‐pandemic actuals of $25.7  million in FY 2019. TOT economic performance for the first five months of FY 2024 is 5.9%  higher than the same period of the prior year. Table 2 shows a 6.8% increase in TOT; however,  the primary driver of this increase is payment timing difference and does not reflect economic  performance. For the 2nd quarter, the average occupancy rate is 69.3% (prior year it was 73.2%)  and the average room rate is $246 (prior year it was $266). TOT revenue remained stagnant in  the 1st quarter, then experienced double digit growth in the first two months of the 2nd quarter.  Staff continues to monitor trends and conservatively estimates that TOT levels will remain flat  compared to FY 2023 actuals. Staff recommends a $1.3 million decrease to TOT revenue and a  corresponding reduction of $0.3 million to the transfer to the Capital Fund for funding allocated  for capital improvements.   Attachment C  Attachment C – Page 3 of 7  Utility User Tax (UUT)  The FY 2024 Adopted Budget assumed an estimate of $18.5 million, slightly lower than the  $18.8 million FY 2023 actual receipts.  Actual UUT receipts in FY 2023 were above year end  estimated levels, due to commodity price increases which resulted in higher UUT revenue. As a  result, this trend continues in FY 2024 as 2nd quarter UUT revenue totals $8.6 million, or 46.3%  of the FY 2024 adjusted budget. Staff recommends increasing the budget by $1.2 million in this  report as a result of higher utility revenues.     Permits and Licenses  The FY 2024 Adopted Budget assumed an estimate of $10.7 million, slightly higher than the $9.8 million  FY 2023 Adjusted Budget.  Cash receipts as of 2nd quarter total $5.2 million, or 50.8% of the FY  2024 adjusted budget and is $2.1 million, or 66.9%, higher compared to FY 2022 2nd quarter  revenue. The increased revenue levels for FY 2024 is driven by new construction and permit  activity.    Documentary Transfer Tax   The FY 2024 Adopted Budget is $5.9 million, an assumed decline of 18% from the FY 2023  Adjusted budgeted of $7.2 million.   Cash receipts as of 2nd quarter total $2.8 million, or 47.1%  of the FY 2024 adjusted budget and is $0.3 million, or 13.3% higher compared to FY 2023 2nd  quarter revenue due to the higher total property sales value. This revenue source is highly  unpredictable, as it is dependent on the value of properties being sold. Staff continues to  monitor these receipts closely due to significant fluctuations that can occur anytime depending  on the real estate sales activity. The budgeted amount of $5.9 million is 2.9% higher than the  actual receipts of the prior year and expected to be realized.  Staff recommends decreasing the  budget by $0.1 million in this report.    Business Tax   The FY 2024 Adopted Budget includes $2.4 million for Business Tax revenue across all funds and  as of the 2nd quarter, revenue collected totals $0.5 million. The first due date for the tax is  January 1st for the 2023 calendar year, with February 1st being the date that penalties and  interest will begin. In January 2024, an additional $0.5 million was collected. Staff will continue  to monitor collections and expect to begin compliance and enforcement activities in February  2024, before assessment and collection of the first quarter of calendar year 2024 begins. A  small increase of $41,000 in business tax revenue is recommended in this report to align with  increased contractual administration costs for business tax and business registry.     A technical correction is also recommended in this report to consolidate all business tax  revenue in the General Fund. As part of the FY 2024 Adopted Budget $0.8 million in business  tax revenue was budgeted in the Capital Improvement Fund to support transportation capital  projects. This report will move the budget for this $0.8 million to the General Fund and  establish a transfer of $0.8 million to the Capital Improvement program to maintain the   Attachment C  Attachment C – Page 4 of 7  allocation of the funding in alignment with the Council's adopted Advisory Spending Resolution  to fund transportation and grade separation projects.    Charges for Services & Permits and Licenses  The FY 2024 Adopted Budget assumed an estimate of $34.6 million in Charges for Services, a  $4.0 million, or 13.1% increase, compared to the FY 2023 Adjusted Budget. The FY 2024  Adopted Budget assumed an estimate of $10.7 million in permit and license revenue, a $0.9  million or 9.2% increase compared to the FY 2023 Adjusted Budget. Together, these revenue  categories make up nearly half of all non‐tax revenues. In total, $42.5 million was received  during FY 2023, above the revised budget estimates by $2.0 million. These revenue categories  consist of charges to Stanford for fire services and paramedic services, fees related to the City’s  golf course, arts and science classes, plan check fees, Building Permits, Fire Permits, and  miscellaneous health and safety‐related licenses. Several minor adjustments to revenue in  Charges for Service are recommended in this report and discussed below; however, overall  revenues in these categories are in line with activity levels anticipated thus far.      Community Services (CSD): The demand for CSD programming remains at elevated  levels. Total departmental revenue through the end of the second quarter is  approximately $6.1 million or 47% of the FY 2024 total budgeted revenue. At this same  time last year, CSD’s total revenue was tracking at 46% of FY 2023 budgeted revenue  levels through the second quarter. CSD is recommending adjustments to an Art Center  program with high demand. Due to the popularity of art classes, the Kids and Teens  Studio Program has requested $50,000 in additional contract dollars to help meet  demand with an offset of $50,000 of increased revenue from class fees to remain cost‐ neutral.      Golf Course: Golf revenue continues to perform well in the first and second quarters of  FY 2024 and slightly higher by 2% from this time last year.  This could be attributed to  better weather than FY23, which experienced several weeks of heavy rains which  deterred play both at the course and the driving range. Revenue guidance is  recommended to remain at its current budgeted level due to the unpredictability of  winter storms in the coming months. The proposed FY 2025 budget will reassess golf  revenue and expenditures based on additional information from third‐quarter results. In  addition, the division is working on a feasibility study of adding a second story to the  driving range with additional potential revenue as an element of the study. Projections  will be included as a part of future revenue estimates if that potential project moves  forward.     Junior Museum & Zoo (JMZ): Through the first two quarters of FY 2024, revenue is  roughly at 40% of budgeted levels (approximately $0.7 million in actual revenue vs. $1.6  million in budgeted revenue). Memberships remain the best‐performing revenue   Attachment C  Attachment C – Page 5 of 7  category (41% of FY 2024 target), while facilities rentals are the lowest performing (5%  of FY 24 target), reflecting similar trends as the prior year.  Staff is working with a consultant on a comprehensive operational analysis of the Palo  Alto Junior Museum and Zoo. The consultant is preparing a business plan to inform  ongoing operational and budgetary decisions. The study will examine financial,  operational, and programmatic status and make recommendations for future  operations to include ticket and membership prices, and how pricing will impact  consumer demand. Once the study is completed, staff will review the results and  present recommendations for financial and operational efficiencies to Council. In  addition, Staff is currently working with purchasing for a new reservation and ticketing  platform for the JMZ. Staff expects to implement the new system in 2024.      Development Services: Preliminary FY 2024 Development Services revenue is up 3.1%  compared to last year and is currently at 43.8% of the FY 2024 revenue target. This is  mainly driven by increased single family residential permit activity. Department‐ managed expenses are currently under or on pace to meet the budget. The table below  articulates Development Services revenues from January 2021 through December 2023.  Table 3: Development Services Revenue – 2021 through 2023           Attachment C  Attachment C – Page 6 of 7  Expenditures  Overall General Fund expenses are currently expected to remain within the FY 2024 Adjusted  budget levels of $284.3 million (not including transfers to infrastructure or other funds).  General Fund expenses (excluding operating transfers) for second quarter are 17.4% higher  than the prior year and are tracking at 39.0% of the Adjusted Budget (excluding encumbrances);  this trend is consistent with prior year expenditure levels.   Table 4      Salaries and Benefits  As a service driven organization, the largest expenses are salaries and benefits. Preliminary  salary and benefits expenditures through December 2023 are approximately $81.7 million, or  49% of the $166.9 million FY 2024 Adopted Budget, compared to $71.3 million in the same  period in the prior year. The City continues to maintain vacancies of approximately 74  positions; though this changes frequently, this reflects approximately a 13% vacancy rate.   Vacancy levels impact service capacity; however, departments use vacancy savings to mitigate  these impacts through other staffing strategies such as filling staffing gaps by contracting for  professional services, hiring ahead to allow overlap and smooth transitions, piloting new  technologies to increase efficiency in the absence of staff, and supporting a summer internship  program.     Expenditures FY 2024 FY 2023 Inc/(Dec) % change FY 2024 % FY 2023 % Police 26,032$   23,934$  2,098$    8.8% 52,241$    49.8% 47,723$    50.2% Fire 23,925 20,420 3,505 17.2% 47,464 50.4% 41,479 49.2% Community Services 17,976 13,379 4,597 34.4% 40,356 44.5% 34,690 38.6% Public Works 9,761 9,264 497 5.4% 25,763 37.9% 22,764 40.7% Planning and Development Services 10,938 8,916 2,022 22.7% 33,049 33.1% 26,426 33.7% Library 5,289 4,272 1,017 23.8% 12,599 42.0% 10,524 40.6% Administrative Services 4,971 4,705 266 5.7% 11,250 44.2% 10,107 46.6% All Other Departments 12,022 9,609 2,413 25.1% 61,530 19.5% 54,672 17.6%   Total Expenditures 110,914$ 94,499$  16,415$  17.4% 284,252$ 39.0% 248,385$ 38.0% General Fund Expenditures FY 2024 2nd Quarter YTD (000's) 2nd  Quarter Actuals Adjusted Budget  Attachment C  Attachment C – Page 7 of 7  Public Safety Overtime  Table 5    As shown in Table 5 above, Police Department overtime is trending higher compared to FY 2023  due to a number of factors including backfilling shifts due to vacancies; benefited leave or  industrial injuries; and five recruits in training, either in house or at the police academy. As of  the end of the 2nd quarter, 12% of positions are vacant, another 7% of staff are unavailable to  work due to benefited leave or industrial injury, and 5% of filled positions have new staff in  training (in‐house or at the police academy). The Department is anticipating overtime to  continue trending over FY 2024 budget levels, with a leveling off if the hiring cycle continues to  stay ahead of departures. See Attachment D For more information on vacancy and overtime  staffing.   Fire Department overtime expenses are tracking higher compared to FY 2023 due to backfilling  entry level firefighters while completing the Joint Fire Academy and continued vacancies. In the  spring of 2023, the Department hired a total of 13 entry level firefighters which accounts for  16% of all on‐shift personnel positions. Although the positions are filled, those 13 recruits must  complete a 6‐month academy before being able to work on shift. In August 2023, the 13 entry  level firefighters graduated from the academy and are now working on shift.  The Department continues to struggle to fill vacancies; as of writing of this report, the  Department is still carrying 13 vacancies among the International Association of Fire Fighters  (IAFF) ranks. The overtime hours will remain high as backfill is required to maintain daily  operations with a high vacancy rate.  Police and Fire Salaries and Overtime Expense FY 2024 2nd Quarter YTD  (000's) FY 2024 FY 2023 % change FY 2024 % FY 2023 % Inc (Dec) Police ‐ Salaries 9,110$     8,659$     5.2% 21,577$ 42% 19,186$   45.1% Police ‐ Overtime 1,687 1,509 11.8% 1,029 164% 973 155.1% Total Police 10,797     10,168     6.2% 22,606   48% 20,159     50.4% Fire ‐ Salaries 8,413 7,450 12.9% 18,417 46% 15,291 48.7% Fire ‐ Overtime 2,050 1,799 13.9% 2,146 95% 3,801 47.3% Total Fire 10,462     9,249       13.1% 20,564   51% 19,092     48.4% Total Public Safety Salaries & Overtime 21,259$   19,418$   9.5% 43,169$ 49% 39,251$   49.5% 2nd Quarter YTD Actuals Adjusted Budget Attachment D 2022 2023 2024 Q2 POLICE DEPARTMENT Overtime Expense Adopted Budget (A)$944,186 $972,512 $1,028,988 Modified Budget (B)1,244,186 972,512 1,028,988 Net Overtime Cost - see below 781,344 1,107,518 1,149,083 Variance to Budget 462,842 (135,006) (120,096) Overtime Net Cost Actual Expense $2,319,043 $2,940,019 $1,686,904 Less Reimbursements Other Program Reimbursements - 878 California OES/FEMA (Strike Teams) - - Stanford Communications 107,684 124,868 50,526 Utilities Communications Reimbursement 56,004 64,599 28,472 Local Agencies (C)5,456 4,949 3,711 Police Service Fees 120,411 100,413 41,534 Total Reimbursements 289,556 295,707 124,243 Less Department Vacancies (A)1,248,143 1,536,794 413,578 Net Overtime Cost $781,344 $1,107,518 $1,149,083 Department Vacancies (number of days)3,903 4,876 1,259 Workers' Compensation Cases 11 N/A* N/A* Department Disabilities (number of days)1,221 739 177 FIRE DEPARTMENT Overtime Expense Adopted Budget (D)$1,931,121 $2,124,054 $2,146,234 Modified Budget (E)2,703,621 3,801,054 2,146,234 Net Overtime Cost - see below 4,073,011 1,740,750 1,334,108 Variance to Budget (1,369,390) 2,060,304 812,127 Overtime Net Cost Actual Expense $4,684,796 $3,589,198 $2,049,596 Less Reimbursements California OES/FEMA (Strike Teams) - 341,629 - Total Reimbursements - 341,629 - Less Department Vacancies (D)611,784 1,506,819 715,488 Net Overtime Cost $4,073,011 $1,740,750 $1,334,108 Department Vacancies (number of days)1,717 4,105 1,289 Workers' Compensation Cases 35 N/A* N/A* Department Disabilities (number of days)947 484 167 NOTES: (A)The FY 2024 Police Department budget was increased by 1.0 Court Liaison Officer, 1.0 Administrative Associate, 2.0 Public Safety Dispatchers, and 2.0 Police Officers. (B)Police Department adopted budget has not been adjusted in FY 2024. (C)Includes Animal Control Services contract with Los Altos and Los Altos Hills. (D)The FY 2024 Fire Department budget was increased by 2.0 Fire Inspectors. (E)The Fire Department adopted budget has not been adjusted in FY 2024. *Data is not available at time of report release, will update for FY 2024 third quarter financial report. Overtime Analysis for Fiscal Years 2022 through 2024 Public Safety Departments