Westminster City Council/Successor Agency to the Westminster Redevelopment Agency
SUBJECT
Title
Fiscal Year 2024-25 Proposed Budget.
End
publichearing
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Erin Backs, Finance Director
____________________________________________________________
RECOMMENDED ACTION
Recommendation
A. Adopt a Resolution entitled, "A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, ADOPTING AND APPROPRIATING THE BUDGET FOR THE 2024-2025 FISCAL YEAR AND AUTHORIZING THE CITY MANAGER TO INCREASE THE 2023-2024 OPERATING BUDGET"; and
B. Adopt a Resolution entitled, "A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, ESTABLISHING THE ARTICLE XIIIB APPROPRIATION LIMIT FOR THE 2024-25 FISCAL YEAR"; and
C. Adopt a Resolution entitled, "A RESOLUTION OF THE WESTMINSTER HOUSING AUTHORITY ADOPTING AND APPROPRIATING THE BUDGET FOR THE 2024-25 FISCAL YEAR"; and
D. Adopt a Resolution entitled, "A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA ADOPTING THE FUND BALANCE POLICY"; and
E. Approve the job descriptions for Principal Planner, Communications Specialist, and Park Ranger; and
F. Adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, REVISING RESOLUTION NO. 5235, AMENDING THE SALARY SCHEDULE FOR THE MANAGEMENT, ADMINISTRATIVE AND CONFIDENTIAL EMPLOYEES FOR THE PERIOD OF JULY 1, 2023, THROUGH AND INCLUDING JUNE 30, 2026”; and
G. Adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, REVISING RESOLUTION NO. 5233, AMENDING THE SALARY SCHEDULE FOR THE WESTMINSTER POLICE OFFICERS’ ASSOCIATION (WPOA) FOR THE PERIOD OF JULY 1, 2023, THROUGH AND INCLUDING JUNE 30, 2026.”
end
BACKGROUND
The budget document provides the foundation for the next fiscal year and more importantly provides the community with information related to the priorities of the City Council in the upcoming year as outlined in the Strategic Plan. The proposed Fiscal Year (FY) 2024-25 operating and capital projects budget document presents our best assumptions for revenue and expenditures for the remainder of the current fiscal year and for the next fiscal year.
The City Council has made Achieving Financial Stability one of the City's strategic objectives. As part of that objective, the City Council placed Measure E on the March 2024 ballot, asking the residents of Westminster to consider a half-cent transaction use tax to sustain Westminster's long- term financial stability and prevent future cuts to services. The Measure was approved by the voters and collections will begin July 1, 2024, generating $8 million annually.
The first study session for the proposed 2024-25 budget was held on May 8, 2023. At that time, the City Council requested that staff prioritize the requested supplemental positions and provide additional information of justification for each request. Additional information was provided at the second study session on June 12, 2024. After reviewing the requests, the City Council requested that three versions of the budget be brought back for discussion at the June 26, 2024 City Council Meeting:
• Version 1 - Does not include any of the requested supplementals (shown in green in the attached budget document).
• Version 2 - Includes all requested supplementals (shown in purple in the attached budget document).
• Version 3 - Includes all supplemental requests except the requested Community Services Coordinator position (shown in blue in the attached budget document).
Fiscal Year 2023-24
During the current year, staff has worked hard to show the community that we are prudent stewards of local funds and continue to strive to do more with less. Some FY 2023-24 highlights that emphasize the priorities of our community are as follows:
Administration
• Closed 50 out of 57 claims with no loss to the city.
• Successfully negotiated and agreed on MOUs/Compensation Plan for a three-year period for four units.
• Recruited 61 positions.
• Received GFOA Certificate of Achievement for Excellence in Financial Reporting for FY 2021-22.
• Received GFOA Distinguished Budget Presentation Award for FY 2023-24.
• Received $134,368 through the Extended Water and Wastewater Arrearage Program through the State of California to assist water customers with outstanding balances related to Covid.
• Completed utility billing conversion to Munis including a more extensive online water account access portal where customers can check balances, pay bills, download bills, and view consumption history.
• Launched “Westminster Build,” an online development services platform.
Community Services & Recreation
• Hosted numerous City-led special events including Movies and Music, Fall Festival (expanded to a weekend long festival), Halloween Spooktacular Trunk or Treat and Movie Night, Santa on the Go, Tree Lighting Ceremony, American Vietnam War Veterans Day Event, Black April Commemoration, Bunny Hop, and Earth Day activities.
• Successfully led the 2024 Tet Parade.
• Managed 24 approved special event permits including Movie Nights at Balsa Chica Park, Blessed Sacrament's Annual Festival, Asian Garden Mall Night Market, ceremonial events at Sid Goldstein Freedom Park, and several large events at Westminster Mall.
• Successfully operated the Splash Pad in summer 2023 with 27 private party rentals.
• Processed 62 facility rentals with over 7,000 guests.
• Registered over 5,909 participants in 463 recreation classes, programs, and activities.
• Reserved over 6,500 hours of field use.
• Through the Family Resource Center (WFRC), in-person services to 1392 individuals from 1052 family clients, including counseling, case management, parenting classes and special activities.
• The WFRC expanded services to include monthly community workshops including disaster prep, domestic violence awareness, health and wellness classes, tenant rights and financial planning.
• WFRC continued to offer low-cost medical services, monthly citizenship and legal clinics, employment and job search assistance and food distributions.
• Graduated 24 students through the Project SHUE program.
• Senior Center provided 25 social events with lunch for the older adult community and four afternoon dances.
• Hosted 82 educational classes and presentations for the older adult community.
• Provided food distribution to 125 low-income families each month.
• Senior Center partnered on two occasions with LA Quinta High School AVID students for nutritional program support.
• Senior Center partnered with Westminster High School Workability program on eight events for volunteer opportunities with nutrition programs.
• Hosted two intergenerational events with meals on wheels.
• Senior Center hosted an intergenerational ping pong tournament with the Westminster Youth Committee.
• Hosted four teen tech help workshops for older adults.
• Entered a partnership with the Assistance League to provide a
• breakfast program for older adults.
• Hosted 12 free sessions for 1-1 appointments for older adults with HICAP and community legal aid.
• WOW transportation provided over 7,500 one-way trips for senior Westminster residents.
• Senior Center provided goody bags to all Home Delivered Meals clients during summer and at Christmas.
Public Works
• Installed 39 new ADU water services.
• Repaired 40 service leaks and 3 water main breaks.
• Exercised 300 water valves and serviced 35 fire hydrants.
• Pumped 100% well water and saved approximately $300,000 in import water costs.
• Repaired 3,461 potholes citywide.
• Removed 3,109 graffiti locations.
• Picked up 523 abandoned items in the public right of way. Replaced 17 damaged sidewalk locations and installed 9 pedestrian wheelchair ramps.
• Planted 12 new trees in public right of way and parks.
• Completed construction of Westminster Boulevard improvement project from Goldenwest Street to Hoover Street.
• Completed construction of Edwards Street improvements from Westminster Boulevard to Trask Avenue.
• Completed the construction of the Garden Grove complete street Edwards/Trask trail improvements.
• Completed the design of Garden Grove Boulevard Street improvement project from Edwards Street to Beach Boulevard. Anticipate construction in July 2024.
• Completed the design of Magnolia Street improvement project, from Heil Street to Edinger Avenue. Anticipate construction in September 2024.
• Completed the construction of CDBG overlay project which included threef residential street segments.
• Completed the design of CDBG citywide overlay project which included 10 residential street segments.
• Completed the design of citywide slurry seal project which included 63 residential street segment.
• Completed the traffic signal installation and median improvements at Brookhurst Street and Greenstone Lane.
• Completed new playground installation at Sigler Park and Liberty Park.
• A new playground installation at Newcastle Park playground renovation project is underway.
• Completed the design of Tony Lam Park playground renovation project. Anticipate construction in October 2024.
• Completed the design of Mendez Historic Trail improvement project. Anticipate construction in September 2024.
• Completed the installation of the Cherry Outdoor Dining Patio at Westminster Boulevard and Cherry Street.
• The design for ARPA-funded playground projects at Bolsa Chica, Westminster Village, Russell Paris, College, and Bowling Green Parks is in progress.
• The design for ARPA-funded baseball field improvement project at Westminster and Buckingham Parks is in progress.
• The design for ARPA-funded Community Garden project on Cherry Street is in progress.
• The design for ARPA-funded HVAC/roofing project for the City Hall, Council Chamber, Senior Center, and Community Services buildings is in progress.
• The design for ARPA-funded Blakey Park renovation project is in progress.
Police
• Leadership: Hosted a new promotion on-boarding supervisor/management training.
• Be-Well started responding to assist Westminster in July.
• Over a dozen traffic operations and DUI checkpoints were conducted by our traffic division.
• Hosted Safety Day at Sigler Park.
• Hosted a Coffee with a K9 event.
• Participated in National Walk to School Day.
• Hosted a National Prescription Drug Take Back event.
• Hosted a Community Crime Prevention Workshop.
• Hosted our local Hotel Association for a crime update/prevention workshop.
• Police made 2,406 arrests since July 1, 2023.
• Hosted quarterly Probation Officer Training.
• Two more officers were added to the Homeless Liaison Unit.
• Numerous Homeless Outreach Events were conducted.
• Several Homeless sweeps were conducted to focus on illegal encampments.
• Code Enforcement/CPU conducted weekly Street Vendor Operations.
• Facilitated National Night Out 2023.
• Held a Community Academy and graduated 13 attendees.
• Hired 13 new Police Officers, three Dispatchers and seven Professional Staff employees.
• Hired a new Emergency Manager who will facilitate training and compliance throughout all city departments regarding emergency operations.
• WPD Detectives hosted a Free Crime Prevention Workshop for residents and the business community.
• Patrol handled approximately 89,810 calls for service.
• Dispatch handled a total of 125,282 calls (incoming/outgoing).
• Created 2023 Annual Report (currently in draft form).
• Doubled the amount of FLOCK cameras from four to eight mounted throughout the city.
• Catalytic Converter Etching Event conducted at City Yard.
• Kept our community informed on Police & City matters via social media.
• Processed over 14,591 police reports for internal and court purposes.
• Processed over 1,695 public records requests for insurance agencies, attorneys, public requests, and criminal discovery requests.
• Processed over 4,500 court packages and evidence discovery requests for criminal filing with the Orange County District Attorney's Office.
• WPD was awarded a grant from the California Department of Alcohol Beverage Control which has supported multiple undercover operations throughout the city.
Fire (Provided by OCFA)
• Handled 178,370 emergency calls in 2023 - 3,000 more incidents than in 2022 and 30,000 more than in 2021, and a 20% increase in just three years.
• Emergency Command Center received over 228,000 911 calls in 2023, dispatching responses in 56 seconds, well under the 1:04 national guideline.
• Westminster is staffed with three paramedic engine companies and a battalion chief. A fourth engine, Engine 25, is stationed in Midway City which supported Westminster with over 1,000 responses in 2023.
• Westminster's contract costs are for the three engines and chief; the city is not charged for all the OCFA specialty programs including technical rescue units, hazmat team, and incident management team.
• Units in Westminster ran 9,026 emergency calls, a 14% increase over the past three years, including 142 fires, 604 traffic collisions, and 2,933 critical need medical emergencies.
• Fire inspectors and firefighters conducted 1,200 fire safety building inspections.
• Supported Westminster development services with numerous projects, including the Westminster Mall redevelopment.
• Participated in 47 city events, including the Tet Parade, Movies and Music, 65th Anniversary Fall Festival, Trunk or Treat & Halloween Movie Night, Santa on the Go, Tree Lighting.
• Cadet Post 64 hosted at Fire Station 64 has over 35 cadets, many of whom are Westminster residents.
• Supported Westminster High School with "Stop the Bleed" training for over 150 faculty and staff.
• Received 10's of millions of dollars in grant funding to minimize costs for cash contract cities like Westminster.
• Hosted its largest Open House in March, with more than 5,400 community members in attendance.
• Social media increased its followers by 20%, garnered 1.7 million total engagements and 31 million impressions.
• Garnered $292.3M worth of earned media coverage in 2023.
• Hosted the 4th Annual Girls Empowerment Camp, a camp dedicated to introducing the fire service to high school aged women.
• Launched the agency's first #OCFAWomenlnFire year-round Social Media Campaign.
• Conducted two recruit academies with 50 candidates each, two engineer academies, two captain academies, and one battalion chief academy in 2023.
• The training section hosts quarterly training for the fire crews and provides 25 career development courses, including promotional leadership classes and academies.
• Continues to be recognized as a cutting-edge agency, constantly at the forefront of fire services, especially in emerging technology. Chief Fennessy was named a "Top 25 Doers, Dreamers & Drivers" by Governing Technology.
• Led the way with the FIRIS program, which provided real-time airborne intelligence to incident commanders via aircraft and a supercomputer at UC San Diego.
• Purchased and outfitted to new Sikorsky S70 FIREHAWKS that will join agency's two Bell 412EP helicopters and empower OCFA Air Operations to perform day/night aerial fire suppression, remote rescues, and other all-hazard missions at a far safer and capable level.
Budget Layout
The city budget is broken down into three main sections. The Summaries section includes the total sources and uses schedule which shows revenue, expenditures, and balances for all funds on one page. Each fund is further detailed on individual schedules located behind the fund statements tab. Within each fund are programs. The programs are categorized by department and are located behind the department tabs. The budget is broken down further by objects. Objects are more specific and provide the most detail included in the document. Also included in the budget are recommended capital projects for the upcoming year. Capital improvement project (CIP) requests totaling $12.8 million are found behind the capital improvements tab.
Schedules show FY 2022-23 actuals, FY 2023-24 adjusted budget, FY 2023-24 estimated year-end actual, and the proposed FY 2024-25 budget. The proposed budget includes contracted increases for current services and all service additions added by the City Council during FY 2023-24.
The expenditure objects for the city are grouped together by type and categorized as follows:
• Salaries and Benefits
o Salaries & Personnel Costs - Costs associated with employee compensation and benefits and retiree medical payments.
o Employee related administration, insurance, and claims costs
• Operations and Maintenance
o Operating costs including contractual, legal, supplies, training, vehicle use, uniforms, postage, printing, utility costs including gas, electric, phone and water, licensing fees.
o Equity Taxes - Water ground pumping costs
o Other Uses - Bad debt expense
• Capital Outlay/Other
o Expenditure relating to improvement projects and the purchase of equipment.
o Depreciation - Accounting method used to allocate the cost of a tangible or physical asset over its useful life or life expectancy.
• Debt Service
o Interest & Fiscal Charges - Interest charges on outstanding balance of debt issuances.
o Principal Retirement - Payments applied to outstanding debt balance.
• Administrative Charges/Transfers
o Admin Offsets/Credits - Overhead charge spread between city funds.
o Operating Transfers - Transfers between city funds
Total Budget
The total city budget of $146.9 million includes 35 funds, and funding for 256 full-time positions, plus seven supplemental positions and one reclassed position. The total FY 2024-25 budget including all funds is summarized in the following table.
|
|
Beginning Balance |
Revenue |
Transfers In |
Expenditures |
Transfers Out |
Ending Balance |
|
General Fund |
34,470,433 |
86,583,422 |
0 |
86,962,867 |
1,525,000 |
32,565,987 |
|
Special Revenue Funds |
22,447,592 |
13,531,856 |
0 |
7,502,672 |
6,736,052 |
21,740,724 |
|
Capital Project Funds |
26,541,470 |
124,000 |
8,581,052 |
10,088,469 |
0 |
25,158,053 |
|
Enterprise Funds |
17,329,791 |
21,398,500 |
4,006,066 |
22,975,933 |
3,981,066 |
15,777,358 |
|
Fiduciary Funds |
1,395,601 |
5,866,572 |
0 |
5,866,572 |
0 |
1,395,601 |
|
Internal Service Funds |
(722,232) |
13,606,134 |
0 |
13,529,421 |
345,000 |
(990,519) |
|
Total |
101,462,655 |
141,110,484 |
12,587,118 |
146,925,934 |
12,587,118 |
95,647,204 |
Revenue for all funds is projected to total $141.1 million and budgeted expenditures total $146.9 million. The largest categories of expenditures in the city are in the general fund followed by the enterprise (water) funds, internal service funds, and capital projects. Ending balances for all funds are projected to total $95.6 million.
General Fund
The general fund is the primary operating fund of the City. All general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other funds are accounted for in the general fund. General fund expenditures include operations traditionally associated with activities which are not required to be accounted for or paid by another fund.
The General Fund Budget is presented in 3 versions:
• Version 1 - None (shown in green in the attached budget document) - does not include any of the requested supplementals and uses $1.5 million of reserves.
• Version 2 - All (shown in purple in the attached budget document) - includes all requested supplemental and uses $1.9 million of reserves.
• Version 3 - Less 1 (shown in blue in the attached budget document) - includes all supplemental requests except the requested Community Services Coordinator position and uses $1.8 million of reserves.
Revenues are projected at $86.6 million and expenditures, including transfers out, are projected at $88.1 million in Version 1, $88.5 million in Version 2 and $88.4 million in Version 3. The use of reserve funds has drastically improved over the prior year adjusted budget of $7.2 million use of reserves. The additional revenue generated from the Measure E transaction use tax made it possible for revenue to cover operating costs. Reserves are being used to fund the $1.5 million in capital improvements funded through the general fund and any approved supplemental requests.
Westminster has struggled with budget shortfalls and loss of revenue from state takeaways for over 30 years. The city finances heavily relied on redevelopment funds to maintain basic service and staffing levels and provide business development assistance, low-moderate income housing and community-based programs. When the state eliminated redevelopment agencies, the city lost over $30 million in property tax annually with $12 million directly benefiting the general fund. When faced with massive cuts, the City Council approved the placement of a one-cent transaction use tax measure on the ballot and the voters approved Measure SS in November 2016. Measure SS was a limited term solution that ended December 31, 2022. On August 12, 2022, the City Council voted to put the continuation measure on the ballot and Measure Y was approved by the voters in November 2022. Measure Y collections started April 1, 2023. In March of 2024, the voters were once again faced with a choice to fund service levels through the approval of an additional ½ cent transaction tax which will be remitted to the city starting in July 2024.
Projected fund balances for FY 2024-25 are based on current year projections. The FY 2023-24 General Fund revenues are trending above budgeted projections by $1.2 million. This is primarily a result of higher charges for services primarily due to development fees and ambulance billing charges. General fund expenditures are projected to be under budget by $2.5 million. The estimated decrease is due to continuing efforts by all departments to contain costs and the high number of vacancies the city is experiencing in all departments. The budget was adopted with a use of reserves of $6.9 million and the adjustment budget shows a $7.2 million use of reserves. Current projections use $3.5 million of reserves.
The salary savings from the 27 current vacant positions will continue until these vacancies are filled. One of the City's Strategic Goals is to Attract, Develop and Retain Well Qualified Staff Members and the City is working hard to fill these vacancies and achieve this goal through the objectives identified through the strategic planning process. In addition, staff is working on creating job descriptions which are more accessible and easier to read in attempts to appeal to a broader audience.
The following table shows revenue, expenditures and reserve balances for the FY 2023-24 year-end estimate, FY 2024-25 proposed budget plus 3 additional years of projections based on Version 2 All Supplements. As new revenue sources are identified and implemented this use of reserve will diminish.
|
General Fund |
2023-24 Estimate |
2024-25 V1 None |
2024-25 V2 All |
2024-25 V3 Less 1 |
2025-26 Projected |
2026-27 Projected |
2027-28 Projected |
|
Revenue |
77,261,918 |
86,583,422 |
86,583,422 |
86,583,422 |
88,807,457 |
91,349,850 |
93,978,134 |
|
Expenditures |
80,734,754 |
88,052,760 |
88,487,867 |
88,389,858 |
91,668,089 |
95,099,705 |
98,208,340 |
|
(Use) Reserves |
(3,472,836) |
(1,469,338) |
(1,904,445) |
(1,806,436) |
(2,860,632) |
(3,749,855) |
(4,230,206) |
|
Reserve Balance |
34,470,433 |
33,001,095 |
32,565,987 |
32,663,996 |
30,140,463 |
26,390,608 |
22,160,403 |
The following lists the differences between the adopted FY 2023-24 budget and the proposed FY 2024-25 budget.
• Revenue projections increased $10.5 million with the largest changes as follows:
o Property Tax increased $1.2 million
o Transaction Use tax increased $5.7 million - full year of Measure Y and Measure E
o Charges for service increased $1.8 million
o Utility Users Tax increase $820 thousand
• Expenditures increased $4.8 million primarily related to the following increases:
o PERS retirement costs increased $650 thousand
o Part time/minimum wages increased $138 thousand
o OCFA 4.1% contracted increase $620 thousand
o Liability Fund cost increase $1 million
o Salary and benefit increased per MOU $700 thousand
o Supplemental Requests $460 thousand (if approved)
Transfers out total $25 thousand to the water fund in FY 2024-25 for the Lifeline program. A $1.5 million transfer out for capital projects is included in FY 2024-25. Version 2 of the proposed budget including all supplemental requests shows an estimated ending fund balance/reserve of $32.6 million (unassigned fund balance at $17.5 million) in FY 2024-25 after the use of $1.9 million of reserves to balance the budget.
Pension 115 Trust Accounts
Since establishment in 2017, the city has contributed salary savings in the amount of $250 thousand to both of our pension and Other Post- Employment Benefits (OPEB) Section 115 Trust accounts. Staff is recommending this practice continue with FY 2023-24 salary savings. This would bring the projected use of reserves for FY 2023-24 to $3.2 million and the total general fund ending reserve balance to $34.2 million. Section 115 Trusts for future pension and OPEB costs have been established and management is recommending funding an additional $406 thousand to be paid from savings accomplished by prepaying our unfunded PERS liability in FY 2024-25. This can also be postponed or eliminated to help offset general fund shortages.
Supplemental Requests
At the time of budget preparation, 27 or 13% of the 256 funded full-time positions were vacant. Four full-time positions in the General Fund, three full-time positions in the Water Fund, and one position reclass in the Equipment Replacement Fund totaling $709 thousand in supplemental requests are included in budget Version 2. Budget Version 3 excludes the Community Services Coordinator $98 thousand. The total of the supplemental requests included in Version 3 is $611 thousand. The following list provides additional data for each requested position, includes the fully burdened cost and is in priority order.
General Fund Supplemental Requests $460,012 (fully burdened in priority order):
1. Management Analyst - New position, $119,723, Community Services Administration Program 70000
• This position will provide comprehensive support to the entire department with professional-level research, administrative, operational and analytical duties including review of policies and procedures, draft staff reports, contract management, seek grant opportunities, prepare technical materials and assist with complex event planning processes. Also, they will analyze data to help the department make informed decisions based on trends, patterns, and performance metrics. This data-driven approach will enhance resource efficiency and improve outcomes for the community. Currently, the department lacks professional-level staff for these tasks, leaving them to be handled by the Director with assistance from the Supervisors and Senior Administrative Assistant.
• This position will oversee department wide tasks including:
o Review/update policies and procedures
o Marketing and social media management
o Website content
o Recreation Management Platform administration
o Hiring and recruitment of part-time staff
o Community Garden program implementation
o Banner Agreements
o Community Outreach events
o Manage contracts with vendors, monitor compliance
o Monitor grant programs, monitor compliance
• Potential future responsibilities:
o Creating a more structured volunteer program
o Community/program surveys
o Online facility reservations
o Research potential implementation of park shade shelter reservations
o Research potential implementation of tennis and pickleball court reservations
o Seek additional grant/funding opportunities
2. Administrative Assistant - New position, $98,010, Engineering Program 50500
• Provide administrative support in day-to-day operations for the Engineering Division. Serves as the primary departmental contact via telephone and at the counter to the public to receive, route, process and follow citizen inquiries, assisting to ensure the department provides complaint resolution and information in a timely manner; relieves Engineering staff from handling routine questions and requests for service and elevating only the unusual or complex issues. Performs technical and clerical functions such as maintaining the department's database programs, spreadsheets, website, and producing correspondence, tracking and processing of utility bills, invoices, utility and traffic signal billing; provides administrative support for meetings as assigned, including scheduling meetings and preparing minutes. Assist with capital project coordination including advertising, bidding, contracting, documentation, meeting notes and document collection. Maintains department records and prepares documentation in response to requests for public records. Purchases and maintains an inventory of supplies and materials for the Public Works Department. Review and issuance of wide load permits.
3. Community Services Coordinator - New position, $98,010, Recreation Services Program 71000
• This position will be primarily assigned to city hosted special events. With the increased demands on staff in producing successful and well received city hosted special events, this position will be the lead in those tasks. Our events have become increasingly complex and have demanded the support of the entire department including extensive involvement from the Community Services Director. This role will build relationships with the community and vendors, look for ways for our events to be increasingly self-sufficient by identifying potential revenue streams, staying informed on event trends and best practices.
• When comparing calendar year 2023 (25) to 2024 (32) the Department has produced 28% additional events. Participation and attendance have grown tremendously at these events.
• The three-day Fall Festival and Tet Parade exemplify the increasingly complex events staff now manages:
o Tet Parade had 28% increase in entries - significant additional time reviewing and processing applications, assisting with participants, reviewing and translating scripts and coordinating logistics
o Fall Festival went from a single simple event to a 3-day event with carnival rides, food vendors, live entertainment - significantly more complex that any event managed by the Department with substantial additional support needed from other City departments.
• Department has processed 20% more Special Event Permits to date this current calendar year vs. 2023 impacting the workload of that coordinator to support city events shifting responsibilities to other staff including the Community Services Supervisor, Senior Administrative Assistant and Director.
|
Number |
Event Date |
Event Name |
|
|
Recreation Events Calendar Year 2023 |
|
1 |
1/22/2023 |
Tet Parade |
|
2 |
4/1/2023 |
Bunny Hop at Bolsa Chica Park |
|
3 |
4/1/2023 |
Bunny Hop at Sigler Park |
|
4 |
4/8/2023 |
Bunny Hop at Tony Lam Park |
|
5 |
4/8/2023 |
Bunny Hop at Westminster Park |
|
6 |
4/22/2023 |
Earth Day - Civic Center |
|
7 |
4/22/2023 |
Earth Day - Buckingham Park |
|
8 |
4/30/2023 |
Black April |
|
9 |
7/13/2023 |
Movie Night - Puss in Boots: The Last Wish |
|
10 |
7/19/2023 |
Safety Day |
|
11 |
7/20/2023 |
Movie Night - Lightyear |
|
12 |
7/27/2023 |
Movie Night - Minions: The Rise of Guru |
|
13 |
8/3/2023 |
Concert - Funk Station |
|
14 |
8/10/2023 |
Concert - Gold Rush Country |
|
15 |
8/17/2023 |
Concert - Selena Tribute |
|
16 |
8/24/2023 |
Concert - Moonflower |
|
17 |
9/22/2023 |
Fall Festival Weekend (3 days) |
|
18 |
10/27/2023 |
Halloween Spooktacular |
|
19 |
12/4/2023 |
Tree Lighting |
|
20 |
12/9/2023 |
Breakfast with Santa |
|
21 |
12/8/2023 |
Santa on the Go at Sigler Park |
|
22 |
12/9/2023 |
Santa on the Go at Westminster Village Park |
|
23 |
12/16/2023 |
Santa on the Go at Coronet Park |
|
24 |
12/16/2023 |
Santa on the go at Westminster Park |
|
25 |
12/19/2023 |
Ribbon Cutting Ceremony - Liberty Park Playground |
|
Number |
Event Date |
Event Name |
|
|
Recreation Events Calendar Year 2024 |
|
1 |
2/10/2024 |
Tet Parade |
|
2 |
3/23/2024 |
Bunny Hop at Gillespie Park |
|
3 |
3/23/2024 |
Bunny Hop at Liberty Park |
|
4 |
3/25/2024 |
Community Outreach Meeting at Bolsa Chica Park |
|
5 |
3/25/2024 |
Community Outreach Meeting at Westminster Village Park |
|
6 |
3/26/2024 |
Virtual Community Outreach Meetings |
|
7 |
3/29/2024 |
American Vietnam War Veterans Day |
|
8 |
3/30/2024 |
Bunny Hop at Boys and Girls Club |
|
9 |
4/11/2024 |
Ribbon Cutting Ceremony - Sigler Park Playground |
|
10 |
4/20/2024 |
Earth Day Event at Margie L. Rice Park |
|
11 |
4/20/2024 |
Earth Day Event at Coronet Park |
|
12 |
4/30/2024 |
Black April |
|
13 |
5/1/2024 |
Community Outreach Meeting at Russell C. Paris |
|
14 |
5/1/2024 |
Community Outreach Meeting at College Park |
|
15 |
5/1/2024 |
Community Outreach Meeting at Bowling Green Park |
|
16 |
5/2/2024 |
Virtual Community Outreach Meetings |
|
17 |
7/11/2024 |
Movie Night - Trolls |
|
18 |
7/17/2024 |
Safety Day |
|
19 |
7/18/2024 |
Movie Night - Lilo and Stitch |
|
20 |
7/25/2024 |
Movie Night - Teenage Mutant Ninja Turtles |
|
21 |
8/1/2024 |
Concert - Pulp Vixen |
|
22 |
8/8/2024 |
Concert - Redneck Rodeo | National Night Out |
|
23 |
8/15/2024 |
Concert - The C Band |
|
24 |
8/22/2024 |
Concert - The New Originals |
|
25 |
9/26/2024 |
Fall Festival Weekend (3 days + preview night) |
|
26 |
10/25/2024 |
Halloween Spooktacular |
|
27 |
12/2/2024 |
Tree Lighting |
|
28 |
12/6/2024 |
Santa on the Go - location TBD |
|
29 |
12/7/2024 |
Santa on the Go - location TBD |
|
30 |
12/7/2024 |
Breakfast with Santa |
|
31 |
12/14/2024 |
Santa on the Go - location TBD |
|
32 |
12/14/2024 |
Santa on the Go - location TBD |
• Registration for classes & programs has increased at least 10% currently for the year and we have yet to enter our busy summer season which has impacted the ability of that part-time coordinator and front desk staff to take on additional duties. We are offering over 1,100 classes this year, more than ever. Ideally this position should be actively expanding revenue-generating activities. While supporting events is valuable, it is preferred to avoid continuing to divert these staff members from their core tasks.
• The Front Desk has experienced high turnover which has stressed existing administrative resources and affected the entire department. The sole Administrative Assistant and other office staff has had to fill in gaps, spend extra time training and covering shifts thus shifting some routine event planning tasks to department leadership. Additionally, demand for service has continued to increase:
o Class offerings increase - 50%+
o Enrollment increase - 10%
o Facility rentals increase - 25%
o Reserved field hours increase - 25%
4. Equipment Mechanic - Reclassification of current Mechanic position, $7,868, Equipment Replacement Program 58000
• The current employee (Mechanic) is working out of class. Responsible for the repair and maintenance of specialized City equipment and vehicles such as loaders, backhoes, street sweeper, asphalt truck, dump trucks, boom truck, ALTEC truck, WOW buses, police department motorcycles, specialized water vehicles, and fuel dispensers.
• In-house staff vs. outside vendors: Much lower cost, reliability, and less turn-around time for the equipment or vehicle to be available to the maintenance staff.
5. Communications Specialist (Webmaster) - New position, $136,401, City Manager Program 11500
• This position was requested as part of the strategic plan goal setting session on April 10, 2024. Objective 4 of the Improving Customer Service Delivery to the Community Goal is to present hiring a web master to the City Council for approval in the FY 2024-25 Budget.
Water Fund Supplemental Requests $248,850 (fully burdened)
1. Water Technician I - Three new positions, $82,950 each, $248,850 total, Water Production and Supply Program 56500
• Responsible for replacing/repairing water meters for multi-year exchange project, exercising 3,450 water valves within 12 months, large-scale flushing of water mains in all areas to improve water quality and public health, and complying with State and Federal mandated programs such as PFAS and Lead & Copper Rule Revisions. Water meter exchange program takes place every 10-15 years. Using a contractor for the installation labor only will cost approximately $7 million for approximately 20,000 meters versus in-house employees will cost approximately $2 million total for the 5-year replacement project. In-house employees are also sufficient, reliable, and cost effective.
Other Funds
While the budget process is largely focused on the general fund revenues and expenditures, it is important to note that the City's total budget of $146.9 million is made up of several different funding sources, such as the City's water utility, gas tax, Measure M, and various federal and state grants. The funding made available from these sources is highly restrictive and is dedicated to the completion of various infrastructure and capital improvements projects. This funding cannot be used for general city operations (except for specific administrative costs).
Special Revenue Funds (200-295) account for the proceeds of specific revenue sources that are legally restricted or otherwise assigned for specific purposes. Park dedication, gas tax, Measure M, CDBG, HOME, special police grants, and Family Resource Center are some of the main funds in this category. Special revenue sources total $13.5 million and expenditures total $14.2 for FY 2024-25. The American Rescue Plan Act (ARPA) funds were allocated by the City Council during FY 2022-23 at the October 24, 2022, November 8, 2022 and March 27, 2024 City Council meetings. Unspent ARPA project balances will be carried over to the FY 2024-25 budget.
Enterprise funds operate like a business that charges for a service. The water utility is budgeted for in this category. The City Council passed a water rate increase in February 2021 which included five years of rate adjustments, through January 2025. This has helped achieve financial stability in the Water Enterprise Funds (600, 601, and 602) and provides for funding of necessary improvements to the water system. Combined, water revenues total $21.4 million and expenditures total $22.9 million for the FY 2024- 25 budget.
The budget has five internal service funds that account for activities that provide an internal service to the city departments. Total revenue, primarily from department charges, is projected at $13.6 million and the expenditure budget is $13.9 million for FY 2024-25. The General Benefits Fund 740, and Liability Administration Fund 750 do not meet the minimum fund balance policy of a $500,000 unreserved balance. Liability charges were increased by $1 million, spread to all funds, to cover operating costs and start to build work toward the $500 thousand minimum fund balance. Charges for the liability fund cover the costs of legal fees, insurance and claims. As claims are eliminated the costs in the fund will be reduced. The General Benefits Fund has $10 million in cash, however, $4.7 million of this fund is the 115 Trust reserved for pension benefits. The fund has a large reserve of $9.8 million in worker's compensation claims payable which causes the negative balance. The projected unreserved ending balance of all funds is a negative $991 thousand. Charges will continue to be increased going forward to work toward meeting and maintaining minimum reserve levels. Any excess fund balance above the $500 thousand policy level could be transferred to the general fund.
Capital project funds account for the planning, design and construction of major capital improvements funded by federal, state and county grants, impact fees, and transfers. Once allocated, funds remain in the project account and the budget rolls to future years until the project has been completed. The Economic Development Fund is also included in this category and projects a positive fund balance of $9 million of this, $2.4 is available for projects.
Fiduciary funds account for resources held for the benefit of parties outside the government. The Successor Agency to the Westminster Redevelopment Agency is in this category. The SAWRA filed its Last and Final Recognized Obligations Payment Schedule and approval was received in April 2022. Expenditures in this fund relate to debt service and revenue is provided through the county property tax distribution to pay the obligations.
Job Descriptions
Approval of three new job descriptions is necessary to implement the 2024-25 Budget. Descriptions are attached for Principal Planner to replace the recently retired Planning Manager position, Communications Specialist (Webmaster) included in the strategic plan and in the requested budget supplementals, and Park Ranger approved with the ARPA allocation on March 27, 2024. Approval of these descriptions requires resolutions to amend the current salary schedules for the Management, Administrative and Confidential Employees and the Police Officers Association. Funding for these positions is included in Versions 2 and 3 of the budget documents.
Summary
This proposed budget document is the collaboration of all departments and represents the proposed spending plan for all City funds and programs for the next fiscal year. Staff is looking for direction from the City Council on the FY 2024-25 proposed budget Versions 1 - No Supplementals, Version 2- All Supplementals or Version 3 - Less 1 Supplemental. The general fund budget Version 2 - All Supplementals, shows a use of reserve funds of $1.9 million. The City continues to work diligently to find ways to increase revenues to continue to the road to financial health for Westminster in the future. New revenue sources can take years to implement. Future budgets will continue to use reserves to be balanced. There are no short-term substantial revenue fixes to cover the negative spending in the general fund until long- term fixes can be implemented.
Budget Adoption
The City Budget Adoption Resolution approves and appropriates the budget for fiscal year 2024-25 and establishes the rules and responsibilities for administration. It also makes needed budget adjustments to the previous year's budget. These adjustments have been included in the current budget projections.
Appropriations Limit
The Appropriations Limit Resolution is required by Article XIII B of the State Constitution. The City is limited to appropriating "proceeds of taxes" that do not exceed the legal limit established under the appropriations formula, which is adjusted annually by a combination change in per capita income and population growth. The City's Appropriations Limit for fiscal year 2024-25 is $122,504,209.
Westminster Housing Authority
The Housing Authority Resolution approves and appropriates the budget for fiscal year 2024-25 and establishes the rules and responsibilities for administration.
Fund Balance Policy
The Fund Balance Resolution approves the Fund Balance Policy and establishes the rules and responsibilities for maintaining healthy reserves. The Policy was originally approved June 28, 2017 and should be reviewed as part of the annual budget policy.
FISCAL IMPACT
The total proposed budget for all funds for FY 2024-25 is $141 million in revenue and $146.9 million in expenditures. Transfers between funds total $ 12.6 million. Several current year budget adjustments are being requested as noted on the attached 2023-24 Budget Adjustments document.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
This proposed budget document is the collaboration with all departments and represents the proposed spending plan for all City funds and programs for the next fiscal year. City staff continues to work diligently to find ways to increase revenues to fix the financial health of Westminster for the future; however, new revenue sources can take years to implement. Future budgets will continue to use reserves to be balanced until new revenue sources can be realized. There are no short-term substantial revenue fixes to cover the negative spending in the general fund until long-term fixes can be implemented.
Based on discussions at prior study sessions, the budget is presented in 3 versions and incorporates direction provided by the City Council. Staff is looking for the City Council to provide direction and adopt one of the 3 versions presented or a variation of the three.
ATTACHMENTS
1. Resolution - City Council Budget Adoption
2. 2024-25 Proposed Budget
3. 2023-24 Budget Adjustments
4. Resolution - Article XIIIB Appropriations Limit
5. Resolution - Housing Authority Budget Adoption
6. Resolution - Fund Balance Policy
7. Fund Balance Policy
8. Job Description - Principal Planner
9. Job Description - Communications Specialist
10. Resolution - Management, Administrative and Confidential Employees
11. Section 1. Application of Resolution - Management, Administrative and Confidential Employees
12. Management, Administrative and Confidential Employees Salary Schedule
13. Job Description - Park Ranger
14. Resolution - Westminster Police Officers Association
15. Article III- Recognition POA
16. Westminster Police Officers Association (WPOA) Salary Schedule
17. Combined (city-wide) Salary Schedule
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager