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HomeMy WebLinkAbout060419 Agenda - Regular MeetingCity Council Agenda Tuesday, June 4, 2019 6:30 PM The Government Center South Coast Air Quality Management District/ Main Auditorium 21865 Copley Drive, Diamond Bar, CA 91765 CAROL HERRERA Mayor STEVE TYE Mayor Pro-Tem ANDREW CHOU Council Member RUTH M. LOW Council Member NANCY A. LYONS Council Member City Manager Dan Fox • City Attorney David DeBerry • City Clerk Tommye Cribbins Copies of staff reports or other written documentation relating to agenda items are on file in the Off ice of the City Clerk, and are available for public inspection. If requested, the agenda will be made available in an alternative format to a person with disability as required by Section 202 of the Americans with Disabilities Act of 1990. If you have questions regarding an agenda item, please contact the City Clerk at (909) 839-7010 during regular business hours. In an effort to comply with the requirements of Title II of the Americans with Disabilities Act of 1990, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting. Have online access? City Council Agendas are now available on the City of Diamond Bar’s web site at www.diamondbarca.gov Please refrain from smoking, eating or drinking in the Council Chambers. The City of Diamond Bar uses recycled paper and encourages you to do the same. DIAMOND BAR CITY COUNCIL MEETING RULES Welcome to the meeting of the Diamond Bar City Council. Meetings are open to the public and are broadcast live on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47. You are invited to attend and participate. PUBLIC INPUT Members of the public may address the Council on any item of business on the agenda during the time the item is taken up by the Council. In addition, members of the public may, during the Public Comment period address the Council on any Consent Calendar item or any matter not on the agenda and within the Council’s subject matter jurisdiction. Persons wishing to speak should submit a speaker slip to the City Clerk. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration. Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal. Public comments must be directed to the City Council. Behavior that disrupts the orderly conduct of the meeting may result in the speaker being removed from the Council chambers. INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for regular City Council meetings are available 72 hours prior to the meeting and are posted in the City’s regular posting locations, on DBTV Channel 3, Spectrum Cable Channel 3, Frontier FiOS television Channel 47 and on the City’s website at www.diamondbarca.gov. A full agenda packet is available for review during the meeting, in the foyer just outside the Council chambers. The City Council may take action on any item listed on the agenda. ACCOMMODATIONS FOR THE DISABLED A cordless microphone is available for those persons with mobility impairments who cannot access the podium in order to make a public comment. Sign language interpretation is available by providing the City Clerk three business days’ notice in advance of a meeting. Please telephone (909) 839-7010 between 7:30 a.m. and 5:30 p.m. Monday through Thursday and 7:30 a.m. to 4:30 p.m. on Fridays. HELPFUL PHONE NUMBERS Copies of agendas, rules of the Council, Cassette/Video tapes of meetings: (909) 839-7010 Computer access to agendas: www.diamondbarca.gov General information: (909) 839-7010 Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s Office at 21810 Copley Dr., Diamond Bar, California, during normal business hours. THIS MEETING IS BEING BROADCAST LIVE FOR VIEWING ON SPECTRUM CABLE CHANNEL 3 AND FRONTIER FiOS TELEVISION CHANNEL 47, AS WELL AS BY STREAMING VIDEO OVER THE INTERNET AND BY REMAINING IN THE ROOM, YOU ARE GIVING YOUR PERMISSION TO BE TELEVISED. THIS MEETING WILL BE RE-BROADCAST EVERY SATURDAY AND SUNDAY AT 9:00 A.M. AND ALTERNATE TUESDAYS AT 8:00 P.M. AND ARE ALSO AVAILABLE FOR LIVE AND ARCHIVED VIEWING ON THE CITY’S WEB SITE AT WWW.DIAMONDBARCA.GOV. CITY OF DIAMOND BAR CITY COUNCIL AGENDA June 04, 2019 Next Resolution No. 2019-21 Next Ordinance No. 02(2019) CALL TO ORDER: 6:30 p.m. PLEDGE OF ALLEGIANCE: Mayor INVOCATION: Father John Palmer, St. Denis Catholic Church ROLL CALL: Chou, Low, Lyons, Mayor Pro Tem Tye, Mayor Herrera APPROVAL OF AGENDA: Mayor 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Presentation of Certificate Plaque to Impeccable Pooch, 582 N. Diamond Bar Boulevard as New Business of the Month for June, 2019. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 3. PUBLIC COMMENTS: Public Comments" is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council JUNE 4, 2019 PAGE 2 on Consent Calendar items or other matters of interest not on the agenda that are within the subject matter jurisdiction of the Council. Although the City Council values your comments, pursuant to the Brown Act, the Council generally cannot take any action on items not listed on the posted agenda. Please comple te a Speaker's Card and give it to the City Clerk (completion of this form is voluntary). There is a five-minute maximum time limit when addressing the City Council. 4. RESPONSE TO PUBLIC COMMENTS: Under the Brown Act, members of the City Council may briefly respond to public comments but no extended discussion and no action on such matters may take place. 5. SCHEDULE OF FUTURE EVENTS: 5.1 Meet the Mayor – June 8, 2019 - :10:00 a.m.- 12:00 p.m., Albertsons Shopping Center1235 S. Diamond Bar Boulevard. 5.2 “Family Day of Play” – June 8, 2019 – 9:00 a.m. – 11:00 a.m., Larkstone Park, 20668 Larkstone Drive. 5.3 Planning Commission Meeting – June 11, 2019 – 6:30 p.m., Windmill Community Room, 21810 Copley Drive. 5.4 Concerts in the Park – June 12, 2019 - The Answer (Classic Rock) 6:30 p.m. – 8:00 p.m. Movies “Under the Stars” Small Foot – Immediately following the Concert - Sycamore Canyon Park, 22930 Golden Springs Drive 5.5 City Council Meeting – June 18, 2019- 6:30 p.m., AQMD/Government Center, 21865 Copley Drive. 5.6 State of the City - June 27, 2019- 6:00 p.m.-7:30 p.m., Diamond Bar Center, 1600 Grand Avenue 6. CONSENT CALENDAR: All items listed on the Consent Calendar are considered by the City Council to be routine and will be acted on by a single motion unless a Council Member or member of the public request otherwise, in which case, the item will be removed for separate consideration. 6.1 APPROVAL OF CITY COUNCIL MEETING MINUTES. 6.1.a Study Session of May 21, 2019. 6.1.b Regular Meeting of May 21, 2019. JUNE 4, 2019 PAGE 3 Recommended Action: Approve. Requested by: City Clerk 6.2 PLANNING COMMISSION MEETING MINUTES. 6.2.a Regular Meeting of April 9, 2019. Recommended Action: Receive and file. Requested by: City Clerk 6.3 PARKS AND RECREATION COMMISSION MEETING MINUTES. 6.3.a Regular Meeting of April 25, 2019. Recommended Action: Receive and file. Requested by: Parks & Recreation Department 6.4 RATIFICATION OF CHECK REGISTER DATED MAY 16, 2019 THROUGH MAY 29, 2019 TOTALING $840,376.45. Recommended Action: Ratify. Requested by: Finance Department 6.5 TREASURER'S STATEMENT FOR APRIL 2019. Recommended Action: Approve. Requested by: Finance Department 6.6 REJECTION OF CLAIM FILED BY SAN GABRIEL VALLEY WATER AND POWER, LLC. Recommended Action: That the City Council reject the claim filed by San Gabriel Valley Water and Power, LLC. Requested by: City Manager 6.7 AMENDMENT NO. 1 TO TRAFFIC SIGNAL MAINTENANCE SERVICES AGREEMENT WITH SIEMENS MOBILITY, INC. Recommended Action: Approve, and authorize the Mayor to sign Amendment No. 1 to Traffic Signal Maintenance Services Agreement with Siemens Mobility, Inc. for a total authorization not-to-exceed amount of 202,118.80. Requested by: Public Works Department 6.8 ADDITIONAL EXPENDITURES FOR SPECIAL LEGAL SERVICES Recommended Action: Approve, and authorize the City Manager to issue, a Purchase Order in the not-to-exceed amount of $250,000 for continued JUNE 4, 2019 PAGE 4 special legal services provided by Sheppard, Mullin, Richter & Hampton LLP. Requested by: City Manager 7. PUBLIC HEARINGS: NONE. 8. COUNCIL CONSIDERATION: 8.1 ADOPTION OF THE FY 2019-2020 CITY OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM, INCLUDING ESTABLISHMENT OF THE APPROPRIATIONS LIMIT, EMPLOYEE COMPENSATION PLAN AND INVESTMENT POLICY. Recommended Action: A. Adopt Resolution No. 2019-XX approving the FY 2019-2020 City Operating Budget and Capital Improvement Program; B. Adopt Resolution No. 2019-XX establishing the appropriations limit for FY 2019-2020 in the amount of $48,024,685; C. Adopt Resolution No. 2019-XX amending Resolution No. 2018-21 establishing a compensation plan, salary ranges and fringe benefits for all employee classifications; and D. Adopt Resolution No. 2019-XX approving the FY 2019-2020 Investment Policy. Requested by: Finance Department 9. COUNCIL SUB-COMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: 10. ADJOURNMENT: Agenda #: 6.1 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: APPROVAL OF CITY COUNCIL MEETING MINUTES. STRATEGIC GOAL: Open, Engaged & Responsive Government RECOMMENDATION: Approve. PREPARED BY: Attachments: 1. 6.1.a Study Session of May 21, 2019. 2. 6.1.b Regular Meeting of May 21, 2019. 6.1 Packet Pg. 7 CITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION May 21, 2019 STUDY SESSION: M/Herrera called the Study Session to order at 5:30 p.m. in Room CC-8 of the South Coast Air Quality Management District/Government Center, 21865 Copley Drive, Diamond Bar, CA 91765. ROLL CALL: Council Members Chou, Lyons, MPT/Tye, M/Herrera Absent: Council Member Low was excused. Staff Present: Dan Fox, City Manager; Ryan McLean, Assistant City Manager; David DeBerry, City Attorney; Ryan Wright, Parks and Recreation Director; Greg Gubman, Community Development Director; David Liu, Public Works Director; Anthony Jordan, Parks and Maintenance Superintendent; Dianna Honeywell, Finance Director; Marsha Roa, Public Information Director; Cecilia Arellano, Public Information Coordinator, and Tommye Cribbins, City Clerk. DRAFT FY 2019-20 DRAFT OPERATING BUDGET. CM/Fox introduced tonight’s session and turned the presentation over to FD/Honeywell. FD/Honeywell stated that tonight’s session focuses on the 2019-20 Draft Operating Budget, Special Revenue Funds, Internal Service Funds and Debt Service Funds. Staff began working on this budget right after the mid-year budget adjustments. Currently, the General Fund estimated resources amount to about $26.8 million and the estimated expenditures are about $26.5 million leaving the City in a positive position of about $350,000, including the use of reserves of nearly $900,000 for carryover CIP projects that were not completed in the current fiscal year Staff is assuming that for the upcoming fiscal year there will be about a 3.4 percent increase in the property tax revenue. Housing prices remain high; however, there is a slowdown in the sale of homes within the City. The parcels are expected to increase about 4.63 percent this year but only about 3.75 percent next year. Sales tax is projected to decline next year by about 2.9 percent (primarily from gas stations). In this budget, staff has proposed the sale of $250,000 of excess Prop A funds at a rate of 70 cents on the dollar, for a total of $175,000 that would go back into the General Fund or into a special fund, depending on the Council’s decision. Current service charges, construction of the South Pointe project has ended and one-time planning and permit revenues are expected to decline as a result. General Fund Expenditures are anticipated to be about $26.5 million and the City Administration (City Council, City Attorney and City Manager’s office) will be lower in the upcoming year because of increased costs for Tres Hermanos this current fiscal year. Admin support includes the Human Resources Department which is proposing to look at the March to March CPI on an annual basis to help guide the 6.1.a Packet Pg. 8 May 21, 2019 PAGE 2 CC STUDY SESSION City to an annual proposed COLA. This year the March to March CPI was 2.7 percent. Staff is proposing a 2 percent COLA (benefit for full time employees) and a $50 increase in the Benefit Allotment. Included in this budget is an Alternative Retirement System for part time employees which sets aside mo ney on a pre-tax basis that is put into a retirement budget Deferred Compensation 457 Plan. This plan is portable and fully funded when the employee leaves service with Diamond Bar and allows them to take advantage of the opportunity to continue paying into the fund should they become employed by another city that has a similar Deferred Compensation account. Additionally, this is a savings to Diamond Bar because currently, the City contributes 6.2 percent and the employee contributes 6.2 percent and by federal law, Diamond Bar would be required to provide 7.5 percent for retirement. Staff is proposing that the employee assume the entire 7.5 percent. In examples that staff has calculated, an average employee would still realize more money in their paycheck. C/Lyons asked if other cities were working under this plan. FD/Honeywell responded “quite a few cities.” C/Lyons asked if it was working well. FD/Honeywell responded “yes.” C/Lyons asked how many part timers Diamond Bar has. FD/Honeywell responded “about 60.” CM/Fox said that most of the part timers are in the Parks and Rec Department. MPT/Tye asked if this was going forward only and not retroactive . FD/Honeywell responded “correct.” Staff is proposing that this would apply to all current employees and commence October 1st. In response to C/Lyons question regarding explaining the program to the part time employees, CM/Fox stated that assuming there is support from the Council, it will require further Council action that staff will bring back. Staff has included the savings that were estimated, based upon nine months with an implementation of October 1st and there will need to be outreach education for the employees. If something comes up in between and staff decides it is not as great as staff thought it would be, staff will share that at the time of request for recommendation or modification. FD/Honeywell continued stating that another item to point out is that effective January 1, 2020 the minimum wage will go up to $13 per hour which will translate to a very minimal initial impact to the budget, but as it rises to $15 in the next couple of years, more consideration will have to be given to calculating how this will impact 6.1.a Packet Pg. 9 May 21, 2019 PAGE 3 CC STUDY SESSION the organization because there will be classifications that will have to be looked at in more detail. Staff is also looking at a benefit allotment/staff alternative for prospective employees so that the benefit would change for new employees only and existing employees would have their benefit allotment swept into the 457 Plan. Going forward, the Council may want to look at placing some limits to the amount that is allowed to be put into the 457 Plan because this scenario is not currently built into the budget. One of the recommendations under the Fiscal Sustainability Plan presented by ACM/McLean a few meetings back was to start paying down the CalPERS unfunded pension liability. Each year there have been some rather large losses and those are being amortized over time ranging from 15 to 30 years. The City is required to make a UAL payment (payment toward that unfunded liability) related to those losses, and the minimum the City has to pay each year based on the 30 - year schedule is about $341,000. However, the City has chosen to make a higher payment of about $520,000 which would pay that unfunded liability in full in about 15 years for a saving to the City of about $1.9 million over the 15-year period. MPT/Tye asked what losses the City suffered. FD/Honeywell responded that it was CalPERS that suffered Investment losses which spread over all of the plans and Diamond Bar’s portion had to be amortized over 30 years. At the same time, the expected return rate is down 7.25 percent which is causing the City’s costs to go higher each year. The budget proposes some personnel changes, particularly in the Public Works Department where there has been some turnover with the loss of some great engineers and at this point, it has been difficult to fill the Senior Maintenance Worker position. So, staff is proposing some new job classifications to handle the vacancies. The proposal is that the City have a Public Works Manager and Assistant City Engineer come on board to help with CIP projects, and help manage the other associate engineers at the salary range 46E which is $170,000 to 243,000 plus benefits. Staff is also proposing to add an Engineering Technician which would replace the vacant assistant class associate engineer position that was vacated by John Beshay. The Engineering Technician would work the counter more which would provide greater coordination between Planning and Engineering. In addition, staff is proposing to add a Public Works Inspector. At this point the City spends a lot of money on contractors for this service, and the City would have an in-house inspector which would save the City a significant amount of money on contract services. The Senior Civil Engineer position, recently vacated by Kimberly Young, would be adjusted down one level because the Public Works Manager would be assuming more of those duties. C/Lyons asked if the Engineering Technician position would provide more customer service focus. FD/Honeywell responded “yes.” 6.1.a Packet Pg. 10 May 21, 2019 PAGE 4 CC STUDY SESSION PWD/Liu responded to C/Lyons that the position would provide more customer service and that person would be working more closely with Building and Safety. C/Lyons asked if the person would have an engineering background plus education or experience. PWD/Liu said a combination of, but not necessarily an engineering degree. FD/Honeywell continued that staff would also make some adjustments to other engineering positions by defunding one of the assistant class associate engineers and defunding one of the Senior Maintenance Worker positions. C/Chou asked if the positions staff intended to defund were currently vacant . FD/Honeywell responded “correct.” No one is being laid off or demoted. FD/Honeywell summarized that this proposed reorganization would, in staff’s opinion, reduce the City’s contract services on CIP projects by about $250,000 annually. FD/Finance then spoke about Economic Development reporting that Restaurant Week was the City’s most popular event so staff has allocated $22,500 for that event in the next fiscal year. With regard to Public Safety, FD/Honeywell stated that the increase to the contract this year was about 5 percent and the liability trust fund rate increased by 11 percent about $350,000 increase over the current fiscal year). Staff is again proposing that 100,000 be allocated out of a Law Enforcement Reserve Fund for any kind of special controls, assignments, suppression controls, etc. C/Chou asked if $100,000 was enough. FD/Honeywell responded that this year staff believes it will use about $35,000. The 100,000 has been more than enough to allocate. And there is plenty of money in the fund should it be determined at mid -year that a greater amount needs to be allocated. There has been an increase to the Crossing Guard costs by about $13,000 which means that Diamond Bar will be spending about $180,000. M/Herrera asked if the increase was due to adding more schools. FD/Honeywell said no, that it was just a contract increase. M/Herrera asked who the City contracts with for the crossing guard services. 6.1.a Packet Pg. 11 May 21, 2019 PAGE 5 CC STUDY SESSION AE/Malpica answered American Crossing. FD/Honeywell reiterated that with respect to Community Development the City will have lower permit expectations since the South Pointe project is completed so there will be lower revenues and lower costs because the City will not be paying RKA as much for services. For Parks and Recreation this year there was the formation of the Special Events Subcommittee which looked at all of the programs and revamped the events, some of which was because certain venues were not available. With all of these changes and not having the City Birthday Party annually, to the extent it has been over the past years, costs will be reduced by about 2.7 percent in the Recreation department. C/Lyons felt 2.7 percent was too low because the Birthday Party alone costs how much. ACM/McLean responded that the birthday party costs $100,000, the 4th of July is about $70,000, and the new patriotic concert is another $5 -7,000. Overall, estimates total about $165,000. FD/Honeywell pointed out that the 2.7 percentage figure is net because there will be increases in salary proposed for the 2 percent plus the higher PERS costs. C/Lyons said that those two events, the City Birthday Party and the 4th of July event, are the two biggest events the City has and she was hoping that the result of not having those events annually would drop costs off by at least 10 percent. FD/Honeywell said that the Recreation Department budget is about $2 million and in addition to increased salaries and benefits, costs of programs increase each year. FD/Honeywell went on to discuss Public Works/Engineering reporting that the budget continues to include the $150,000 for the Safe Routes to School update as part of the strategic plan. Also, this year, staff was able to reprogram some of the costs that the City paid for with General Fund monies whereas, things such as the traffic signal contractor can now be paid with Prop C funds (nearly $200,000). PWD/Liu responded to C/Chou’s request to explain the Safe Routes program which he did and Council discussed the details of the program. FD/Honeywell went on to explain that as in previous years, the General Fund will be subsidizing LLD’s, a matter under consideration by the City Council. The costs are lower for the upcoming year because the current budget was higher due to 6.1.a Packet Pg. 12 May 21, 2019 PAGE 6 CC STUDY SESSION additional tree trimming costs this fiscal year. This upcoming year it is proposed that the City will subsidize the LLD’s with General Fund money by $429,000 without any changes to the current assessments. General Fund Reserves are carried over for the Capital Improvement Projects and for the Lighting and Landscape Districts for a total of about $897,000. The Community Organization Support Fund – staff is suggesting to allocate 20,000 for all groups in the City (local non -profit organization); the Law Enforcement Reserve Fund – staff is proposing to allocate the $100,000 (current reserves about $1 million); the Technology Reserve Fund – money has been set aside in previous years to help fund the Recreation System, the new Client System and staff is now proposing to set money aside that is being collected through the City’s Permit Fees specifically to replace the current Permit System; Fund 20 is the OPEC Fund where money was set aside a few years back to help fund the retirement health benefits and money continues to be transferred to the Trust Fund with CERT with a current balance of nearly $300,000. C/Chou said that for the Law Enforcement Reserve Fund the City is spending about 100,000 a year on potential overtime and suppression patrol booth and he wanted to know the rationale for maintaining that large of a balance. FD/Honeywell responded to C/Chou that when the City had unfunded positions in previous years, whatever savings the City had were taken from the Law Enforcement Contract and set aside in that fund for any future use where the City might have an increase that the City might not want to absorb with just the General Fund monies. It is kept in place just in case there is a significant increase. To date, the City has been able to absorb the increases and has left the balance there to use on special occasions for suppression patrols. C/Chou suggest the City could use the excess to pay for the increased liability fund. Staff is requesting to set up a new fund during FY 2019 -20 for Fund 107 which is for Measure W that was passed last election and will be used for the Storm Water/Waste Water projects. This revenue will not be forthcoming until the second half of the fiscal year. CIP projects have been programmed for the SW /WW projects; however, those projects will not commence until the City is certain it has the funds. Staff is awaiting the guidelines that will specify whether the money can be used for admin costs to offset salaries. C/Lyons asked what projects would fall under Measure W . PWD/Liu responded the Canyon Loop Trail project, the Diamond Bar Slope repair and the Groundwater Drainage Improvements. CM/Fox emphasized and reiterated FD/Honeywell’s statement that these projects are subject to the ultimate approval of the County and what their guidelines will be. 6.1.a Packet Pg. 13 May 21, 2019 PAGE 7 CC STUDY SESSION At this point, staff believes they will be eligible projects and if something changes this will be revisited mid-year or sooner. INTEL SERVICE FUND (Insurance – approximately $500,000 plus) This is a transfer from the General Fund. The City needs to purchase a new truck to replace a 2006 F150 during the next fiscal year and accordingly, staff is requesting to transfer that money during the current fiscal year to cover both vehicles and additional equipment because the money is available. C/Lyons asked if it was in the budget to replace the City Hall copier. ACM/McLean responded yes; it is in the 530 Fund. FD/Honeywell explained that the money has been transferred to replace servers and the ERP and staff will be expensing these items over the next couple of years as staff works through the project beginning in the next couple of weeks. The debt service comes to approximately $158,000 each year and at the end of the upcoming fiscal year the balance will be about $8.6 million. The fixed interest rate is about 3.4 percent. C/Chou thanked staff for doing a great job on what he believes is a really good budget considering Arcadia, Claremont and other cities are running a $7 -8 million deficit. C/Chou reiterated his concerns about exchanging Prop A Funds. Because there is no current project, he feels that Council should hold off on exchanging the funds until staff has time to identify a project that can be funded. M/Herrera said that before anything can be done, there needs to be Council consensus. M/ Herrera said she disagreed with what C/Chou is suggesting. She does not believe it is a prudent action for this City Council. The City of Pomona is already taking action on this agenda item and there is a small window of time to complete the exchange. Council discussion ensued. Council concluded 3-1 (Chou, Lyons, MPT/Tye – Yes; M/Herrera – No) to remove from the draft budget for 2019/20 the sale of Prop A Funds from consideration at this time. M/Herrera referred to Page 160, Tres Hermanos Conservation Authority Fund totaling $477,000. 6.1.a Packet Pg. 14 May 21, 2019 PAGE 8 CC STUDY SESSION FD/Honeywell responded that this was an error and it should read $70,000, and that the item would be corrected in the next version of the budget. C/Lyons said she is still concerned about the 2.7 percent reduction for parks and does not believe it is correct. It would only be $54,000 and she would like for FD/Honeywell to pencil it out for her. C/Chou said he would be out of town on June 4th and to him this item is important enough that all Council Members should be present for the budget vote . He asked if the vote could be moved forward to the June 18th meeting when he would be present. M/Herrera said she believed that would be detrimental for the City because there are timelines to follow for auditing reasons. Therefore, she believes the Council should continue with the June 4th date and if staff finds a reason it needs to be deferred to June 18th, there is that opportunity. FD/Honeywell further explained that the City cannot legally spend one dollar if there is no approved budget by July 1st. While June 18th provides enough time, should there be an issue arise that defers approval of the budget, it would need to be continued to the first meeting in July and the City is then without a budget which puts it at risk. M/Herrera stated that with affirmative consensus the FY 2019-2020 budget item will be brought forth for consideration on June 4th, 2019. Public Comments: None. ADJOURNMENT: With no further business to come before the City Council, M/Herrera recessed the Study Session at 6:23 p.m. to the Regular Meeting. TOMMYE CRIBBINS, City Clerk The foregoing minutes are hereby approved this day of , 2019. CAROL HERRERA, Mayor 6.1.a Packet Pg. 15 MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR MAY 21, 2019 STUDY SESSION: 5:30 P.M., Room CC-8 FY 2019/20 DRAFT OPERATING BUDGET Public Comments: None CALL TO ORDER: Mayor Herrera called the Regular City Council meeting to order at 6:32 p.m. in the South Coast Air Quality Management District/Government Center Auditorium, 21865 Copley Drive, Diamond Bar, CA. Staff Present: Dan Fox, City Manager; Ryan McLean, Assistant City Manager; David DeBerry, City Attorney; Ken Desforges, IS Director; David Liu, Public Works Director; Ryan Wright, Parks and Recreation Director; Dianna Honeywell, Finance Director; Greg Gubman, Community Development Director; Marsha Roa, Public Information Director; ; Anthony Jordan, Parks and Maintenance Superintendent; Cecilia Arellano, Public Information Coordinator, and Tommye Cribbins, City Clerk. CM/Fox reported that during tonight’s Study Session, the City Council received staff’s report on the Fiscal Year 2019/20 Draft Operating Budget . Overall, the City is running about $26.9 million in revenue and $26.5 million in expenditures leaving a small surplus. There were Council comments and changes that will be incorporated into the budget that staff plans to have prepared for the June 4th Regular meeting for Council adoption. PLEDGE OF ALLEGIANCE: Mayor Herrera led the Pledge of Allegiance. INVOCATION: Garrett Rice, Youth Pastor, Diamond Canyon Christian Church, provided the invocation. ROLL CALL: Council Members Chou, Lyons, Mayor Pro Tem Tye and Mayor Herrera. Absent: Council Member Low was excused. APPROVAL OF AGENDA: As presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 MPT/Tye stated that the owner of P.L. Bakery Café, 2767 S. Diamond Bar Boulevard was unable to attend and that the Certificate Plaque would be taken be delivered. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None. 6.1.b Packet Pg. 16 MAY 21, 2019 PAGE 2 CITY COUNCIL 3. PUBLIC COMMENTS: Pui Ching Ho, Librarian, Diamond Bar Library, spoke about events and programs available through the library during the remainder of May and the first portion of June. Allen Wilson thanked C/Chou for posting information online. He believes that a COLA should not be automatically included as a guarantee for staff and that he is discouraged to see that the City Council is selling Prop A funds at a percentage on the dollar because it means Diamond Bar taxpayer dollars are being given away. He is generally concerned about the budget because it seems to him that the City is spending more than it is taking in. He appreciated the community meeting on the Sunset Crossing Park concept and he would like an update on the Contract Cities meeting that took place in Indian Wells. Mr. Harrison said he was concerned about the lack of African America n teachers in the Walnut Valley Unified School District. Paul Sherwood was bothered that Mr. Harrison was not able to speak for five minutes. 4. RESPONSE TO PUBLIC COMMENTS: Responding to Mr. Sherwood and Mr. Harrison, M/Herrera stated that she spoke with Mr. Harrison at length and explained that the City Council is a separate legal entity and does not have authority over the Walnut Valley Unified School District. She knows that Mr. Harrison had spoken with administrators at the WVUSD office regarding his issue. With respect to Mr. Wilson’s comments about Prop A funds, M/Herrera explained that this is a practice that the City has done for years, selling excess Prop A funds to other cities and by selling the surplus Prop A funds the City has the flexibility to spend those funds on items other than what they are restricted to under Prop A. She believes that it is in the City’s best interest to have the most flexibility in how it can spend its funds. During tonight’s budget study session however, the line item to sell Prop A funds was removed from consideration and those funds are now designated to be held in an account to see if there are projects that the City might want to pursue that are allowed under Prop A guidelines. MPT/Tye said he felt it was very unfortunate that a speaker would come forward and say that the City is “giving taxpayer dollars away” when in fact, the City is not giving money away. Instead, the City receives a certain dollar amount of Prop A funds that it is allowed to use in very, very specific ways. At the end of a certain period, if those funds are not used, the money will go back to Metro or, the City has an option to sell them to the highest bidder. This year it happened to be Pomona. There are 70 plus pages of information about Prop A and he would be 6.1.b Packet Pg. 17 MAY 21, 2019 PAGE 3 CITY COUNCIL glad to supply a copy to anyone who wants to see for himself that indeed, the money goes back to Metro. To say that the roads are in bad condition and the money could be used for that, the roads are not in bad condition. The City keeps its roads updated and in good repair on a regular basis. PWD/Liu has provided information and how this is done on a regular basis and he could provide that information again at this time to explain the pavement condition index and where Diamond Bar stands. He is glad that the City Council had an opportunity to look at the budget and consider Proposition A and realize the City is actually keeping as much money as the system allows. 5. SCHEDULE OF FUTURE EVENTS: 5.1 Parks and Recreation Commission Meeting – May 23, 2019, 2019 – 6:30 p.m., Windmill Community Room, 21810 Copley Drive. 5.2 Memorial Day Holiday – May 27, 2019 – City Offices closed in observance of Memorial Day and reopen Tuesday, May 28, 2019 at 7:30 a.m. 5.3 Planning Commission Meeting – May 28, 2019 – 6:30 p.m., Windmill Community Room, 21810 Copley Drive (canceled). 5.4 City Council Meeting – June 4, 2019 – 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 6. CONSENT CALENDAR: C/Lyons moved, C/Chou seconded, to approve the Consent Calendar as presented. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Lyons, MPT/Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Low 6.1 APPROVED CITY COUNCIL MEETING MINUTES: 6.1a REGULAR MEETING OF May 7, 2019 – as presented. 6.2 RATIFIED CHECK REGISTER DATED MAY 2, 2019 THROUGH MAY 15, 2019 TOTALING $863,520.63. 6.3 LANDSCAPE ASSESSMENT DISTRICT NOS. 38, 39 & 41 FOR FISCAL YEAR 2019-20: 1. ADOPTED RESOLUTION NO. 2019-15 (NO. 38) DECLARING THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE ASSESSMENT DISTRICT NO. 38 AND DIRECTED THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR THE JUNE 18, 2019 REGULAR MEETING 6.1.b Packet Pg. 18 MAY 21, 2019 PAGE 4 CITY COUNCIL 2. ADOPTED RESOLUTION NO. 2019-16 (NO. 39) DECLARING THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE ASSESSMENT DISTRICT NO. 39 AND DIRECTED THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR THE JUNE 18, 2019 REGULAR MEETING; AND, 3. ADOPTED RESOLUTION NO. 2019-17 (NO. 41) DECLARING THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE ASSESSMENT DISTRICT NO. 41 AND DIRECTED THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR THE JUNE 18, 2019 REGULAR MEETING. 7. PULIC HEARINGS: NONE. 8. COUNCIL CONSIDERATION: 8.1 PROPOSITION 218 ASSESSMENT BALLOT PROCEEDING PROCEDURES TO REPLACE EXISTING DISTRICT NOS. 39 AND 41. 8.2 FORMATION OF NEW LANDSCAPING ASSESSMENT DISTRICT NO. 41-2019 TO REPLACE EXISTING DISTRICT NO. 41. 8.3 FORMATION OF NEW LANDSCAPING ASSESSMENT DISTRICT NO. 39-2019 TO REPLACE EXISTING DISTRICT NO. 39. CM/Fox asked that the Council take Items 8.1, 8.2 and 8.3 together for purposes of staff’s report. Item 8.1 is to describe and set in place the Proposition 218 Assessment balloting procedures; Item 8.2 and Item 8.3 talks about the Engineer’s Reports and new proposed assessments for both LLD 41 and LLD No. 39, Much of the material is duplicative so staff’s presentation will cover everything and at the end the Council will have the ability to take individual actions on each of the three items. PWD/Liu introduced John Bliss, President, SCI Consulting Group, who provided staff’s presentation. Mr. Bliss stated that there are a couple of key factors and events as to how California has developed over time. Prior to Diamond Bar’s incorporation, there were a number of subdivisions and with those subdivisions, there is often a need and interest to have landscaping and a variety of improvements. As California was developed, the model and challenge was “how do we sustainably pay for the maintenance of those improvements that go with typical subdivisions”. Many cities up and down the state have had this same challenge and Diamond Bar is very typical. Before the City was incorporated, there were assessment districts formed under a set of rules that has subsequently changed. In 1985 these two developments were created with associated improvements. In 1989, the City 6.1.b Packet Pg. 19 MAY 21, 2019 PAGE 5 CITY COUNCIL incorporated and in 1996 was an important year for financing of local districts in California with the passage of Proposition 218. Proposition 218 was designed to protect taxpayers from runaway costs from local government and it was, like it’s more famous cousin Prop 13, sponsored and promoted by the Jarvis Taxpayers Association. The philosophy of 218 is very solid and is that when there is any kind of improvement to a parcel those property owners ought to pay a fair -share in relationship to the special benefit that particular parcels receive. In the case of Landscaping Assessment District No. 39 and 41 these were created, designed and properly funded, and one of the unintended consequences of Prop 218 when it passed was it essentially eliminated the ability for a public agency to make an adjustment as costs went up. For these two assessment districts, the rate was frozen in time and as costs continued to increase, there was no ability for the City to raise the rates for those costs. As a result, the City looked at reducing services as well as, other types of budget cuts to compensate for the increase. In the end, the reason we are here this evening is because without an explicit balloting that created a CPI (Consumer Price Index) escalator, those rates are frozen in time. So, many cities and other governments up and down the state are faced with the same challenges. This left the City with three choices: 1) the City can reduce the services; 2) dissolve the districts and let the property owners create some alternative; or, (3) the decision that this City Council made is the one that is most typical which is to create a new assessment. This entails a mail-in ballot by property owners that will have two specific goals: 1) Make a correction in costs so that the rate goes up to generate additional revenue allowing the district to be self-sustaining; and, 2) add a much needed CPI mechanism allowing, with direction from Council each year based if and only if there is an increase in costs, to increase that rate limited by 3 percent of the local CPI. Thus, the decision was made to go with the mail-in ballot. There are essentially four steps that are part of any Prop 218 assessment – an Engineer’s Report (analysis) done by a Registered Civil Engineer. It is essentially an analysis that looks at the issue of proportionality (is every parcel assessed fair) and the concept of general benefit to ensure that if some of these benefits received and conferred onto other property owners or people traveling through, that the local property owners do not pay on that behalf. The study comes up with a rate and rate methodology which is what his firm has produced. Tonight, the City Council will be asked to consider a couple of resolutions, and if resolutions are approved for District No’s 39 and 41, SCI will mail out ballots to the property owners in each district who will have 45 days to return those ballots. At the end of that 45-day period, the City Council will conduct a Public Hearing and at the end of the public hearing, there will be a “last call” for ballots after which the ballots will be tabulated. If the “yes” votes are 50 percent plus 1 of the returned ballots weighted by their proposed assessment, the City Council is then empowered to pass another resolution and impose the assessment on those parcels. 6.1.b Packet Pg. 20 MAY 21, 2019 PAGE 6 CITY COUNCIL Tabulation is a very important concept. Prop 218 requires an analysis that has different rates for different types of benefits. For example, a parcel that has a lot of benefit would be assessed more versus a parcel that had less benefit be assessed less. The voting consists of the same kind of structure. As an example, if he had an assessment of $1000 and his neighbor, for whatever reason, had a less benefit parcel or smaller parcel and did not get the same views and was assessed $500, he would get 1000 votes and his neighbor would get 500 votes. In this way, if one is assessed m ore that parcel/property owner gets more voting power. If the tabulation is in support, the City Council will be empowered to pass a resolution and put the assessment on the property taxes. SCI uses an unusual sized (5 ½ by 8 ½) window envelope for sending out the ballots. It is much like a water bill and there are three documents inside the envelope: 1) the ballot itself which has a place for someone to indicate “yes” or no” and sign their name, and lists the parcels on the back with the proposed assessment. Most of the property owners in both Districts 39 and 41 own one parcel. However, there are a couple that own more than one parcel which are all printed on the same ballot. The property owner can vote and return the ballot in the prepaid postage return envelope (contained in the packet). In addition, there is a document “Official Notice and Ballot Information Guide” printed on both sides and provides non-advocacy information about what the services are, what is the budget, what is the proposed rate and describes the tabulation process and provides information to the property owner so that the property owner can make a decision as to whether they would like to vote “yes” or “no”. It also serves another legal requirement which is that it is an invitation to the Public Hearing which is 45 days from the beginning of the balloting. That Public Hearing will be conducted here in the AQMD Auditorium during the Regular City Council meeting and that the ballot can be returned any time up until close of the Public Hearing. Ballots will be tabulated and results will be given on July 16th. Three key dates: On April 16th, 2019 the City Council adopted a Resolution that initiated these proceedings and directed SCI to write the Engineer’s Report and conduct the study. Today the City Council makes its decision about moving forward to mail out the ballots. On July 16th, the end of the 45-day balloting period, the balloting will be closed immediately at close of the Public Hearing and begin the tabulation of the votes. Community Outreach and Education – The goal is to get the most participation possible. SCI’s role, working closely with the engineer and staff , is to give information and get people to participate and embrace this concept. To that end, each and every property owner received an individual letter sent to them which contained a fact sheet and information similar to the notice. The notice is what is legally required, but the City took an extra step to get that information out in the form of a fact sheet infographic that explained the history, the budgeting history, why the CPI could not be done, what the City has done to reduce costs overtime and why the City is coming out at this time to ask for some additional information. In the letter was an invitation to a community meeting which, again, is above and 6.1.b Packet Pg. 21 MAY 21, 2019 PAGE 7 CITY COUNCIL beyond what cities do. Most cities rely on the ballot and the Public Hearing. In addition, Diamond Bar has a dedicated website Assessment Ballot Proceeding FAQ under www.diamondbarca.gov/faq.aspx. The City has gone out of its way to notify property owners because the goal is to get the information out to make sure everyone understands the budget challenges and to get people to participate in the process. The City conducted two very successful community meetings, one for each of the two districts. These were back-to-back community meetings. About 40-50 people attended the District 41 meeting which is less than half the size of District 39 where 150 people attended with both meetings being very productive. The Engineer’s Report goes into the establishment of these rates, on the budget side and with respect to abstract concept of “special benefit” and how “special benefit” can we quantified to make sure people pay their fair-share - not more and not less. District No. 41 has 554 parcels with an annual revenue of about $122,000 . The proposed assessment is an increase of that, but the best way to help people get their arms around it is by a monthly rate. The annual rate is $461 to $501 per typical residence per year. The monthly rate is $20.04 to $23.38 per month depending on what the property yields. That would generate $281,703 and that would render the district self -sustaining, particularly with the CPI going forward. 40 percent would be the maintenance, 28 percent utility (primarily water, some electrical for limited lighting and some irrigation control systems), about 20 percent weed and pest abatement and the overhead at 12 percent. Proposition 218 requires that there be some specificity as to how a parcel is assessed commensurate to the benefit. District No. 41 is relatively small and the types of improvements actually are conferred pretty generally on all of the parcels. The perimeter brush clearance and landscaping can be seen from every street and therefore zones were not required. However, there are two different property types – single family homes and condos. Some of the condo building geometry receives less benefit with respect to view and access and condos tend to have fewer people and by looking at census information to determine the average number of people residing in a condo versus a single-family home. This information was blended with a slight reduction in the types of benefits a condo would receive. In this case, the single-family home rate is $401 and the condo rate is 92 percent or $461 annually. Proposition 218 benefit assessment requires separate quantification and separation of general benefit which is an abstract term, but the best way to think about this is if someone drove through the district and did not know anyone there, had no friends there or were not doing any yard work or any maintenance, they would enjoy the view, the landscaping, etc. The law is very clear that the property owners should not pay for the enjoyment of that particular person just described. This is called “general benefit” and not special to the property which was calculated that “general” benefit needs to be paid for directly by the City and that will continue and to that end, the City will contribute $10,314 annual as required by Proposition 218. 6.1.b Packet Pg. 22 MAY 21, 2019 PAGE 8 CITY COUNCIL District No. 39 has its own peculiarities and special aspects. It is a little bigger than District No. 41 with about 1245 parcels. The current annual rate is $236 and people will be balloted an annual rate of $358.34 up to $387.39, the range of rates depending on the zone. The additional amount is from $10.20 up to $12.62 per month, again with a CPI. Of this amount, 56 percent goes for maintenance, 29 percent for utilities, 9 percent for weed and pest control and 7 percent contract administration. In District 41, everyone got about the same improvements. In this case, District 39 is bigger and there are discernable different zones, areas that get a different type of benefit. Zones A, B and C were developed due to different types of improvements, different concentrations in brush clearing areas, mini parks and linear landscaping. Zone A on the south portion (green) has all three of those improvements in a very concentrated way an d are conferred on all of the parcels. B & C zones have a different combination of those and the rates are slightly lower because they are associated with less special benefit. Zone A is the 100 percent rate of $387.39, Zone B is $377.70 and Zone C $358.34. The general benefit is $33,396. The unusual parcels in District No. 39 are looked at very specifically because sometimes they will contribute special benefit. A park parcel is always an interesting parcel in an assessment district that is paying for park maintenance. One of the differences between an assessment and a special tax, both of which were generated by the Jarvis Taxpayers Association, is that there are tax-exempt parcels. An assessment is different by design with specific language in Proposition 218 that requires public agencies and otherwise tax-exempt properties such as churches, to pay that assessment. Therefore, every single parcel is looked at with the assumption it has some sort of assessment. However, there are some parcels that there will be a finding of no special benefit. A park is a good example because it is one that can be looked at as “if we are assessing these houses to pay for parks, the park is providing a benefit and is not receiving any special benefit from these services. There is a large parcel in the northeast corner, a large parcel with an elementary school, and it was determined that most of the special benefits that the other parcels receive are not conferred on the school parcel which led to a very low assessment (a low estimate of single-family equivalence). In this instance, SCI worked closely with PWD/Liu and other staff members on this issue and looked at it in the area of safety and security in terms of lighting, fire retardant structures and proximity to fire and with the additional information he received from the City, he made a change on that parcel to indicate the school is receiving no special benefit which does not affect any of the other parcels. The school will not receive a ballot, it will not receive an assessment or property tax bill associated with this matter and it will not affect the other parcels within the zones. PWD/Liu recommended City Council approval of the Engineer’s Report and authorization for mailing of the ballots. MPT/Tye asked when the ballots would be mailed. 6.1.b Packet Pg. 23 MAY 21, 2019 PAGE 9 CITY COUNCIL Mr. Bliss explained that the timeline calls for notices and ballots to be mailed on May 31st. C/Lyons asked what Mr. Bliss anticipated participation to be. Mr. Bliss responded that in a typical situation, he would see participation between 25 and 40 percent and the reaction to that typically is at the last election I know they got 50, 60, or 70 percent. The reason for that is, unfortunately in California, only about 50 percent of eligible adults register to vote. In a community like this it might be 60 percent. But using the example of 50 percent, when they say “50 percent of people voting” it is the 50 percent of the 50 percent that are registered which means it is 25 percent. In this instance, the 25-40 percent participation is very, very similar to a regular election. Furthermore, more than 50 percent of Californian’s receive their ballots by mail or about 55 percent statewide. This mail ballot format was unusual 20 years ago but now is very common and expected which means his numbers may be low because Diamond Bar got a higher percentage in the community meeting or double what SCI would normally expect and Diamond Bar may get 40-50 percent on this ballot issue. C/Lyons asked how many mailings to property owners came back as undeliverable. PWD/Liu said he did not have that information as yet but that it should be forthcoming. C/Lyons asked if mail forwarding would be done . Mr. Bliss explained that they are obliged to use the County Assessor records which have a field called “mail address” which is where the property tax bills go. The LA County Assessor data is very good – one of the best in the state. Still, people move, there is change of ownership, etc. and we could expect to see a one to three percent return. When they come back there is a service that will be working with the City to determine a forwarding address so in this case, about 30 percent will be mailed a second time. MPT/Tye said using the assessor records means the property owner should be voting and not the property resident. Mr. Bliss said was correct. This is a “property owner” ballot and in a community like this, there are few renters. If someone owns the house and lives in Milwaukee, that ballot will go to Milwaukee and the property owner gets to participate and the person who lives in the property does not. C/Chou asked if there was provision for drop-off ballots in addition to the mail-in ballot. Mr. Bliss responded the City is required to do that and there is a postage paid 6.1.b Packet Pg. 24 MAY 21, 2019 PAGE 10 CITY COUNCIL return envelope that will go on the ballot as well as instructions that they can drop the ballot off during the Public Hearing. In addition, there are protections in place for lost ballots to prevent double voting, especially if they request a replacement ballot late in the timeline. Those people will be encouraged to attend the Public Hearing where there will be a ballot box in which they can place their ballot. M/Herrera asked if property owners need to be registered voters to vote on this ballot issue. Mr. Bliss responded no, that this is a property-owner balloting issue only and there is no constitutional requirement that they be a registered voter. M/Herrera asked if anyone wished to speak on this matter. Seeing no one who wished to speak on this matter, M/Herrera closed public comments. Motion on Item 8.1: C/Chou moved, MPT/Tye seconded, to approve Item 8.1. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Lyons, MPT/Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Low Motion on Item 8.2: C/Lyons moved, C/Chou seconded, to approve Item 8.2. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Lyons, MPT/Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Low Motion on Item 8.3: MPT/Tye moved, C/Lyons seconded to approve Item 8.3 as amended. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Lyons, MPT/Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Low 9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: C/Chou responded to comments made earlier that democracy is a beautiful thing and Council Members were elected as public servants to provide input and it is okay to disagree. He appreciates his colleagues voicing their opinions. As elected officials Council Members are held to a higher standard and must speak their minds because ultimately, elected officials are responsible to the people and not necessarily in agreement in all cases. C/Chou reported that on May 9th he 6.1.b Packet Pg. 25 MAY 21, 2019 PAGE 11 CITY COUNCIL attended the Diamond Bar Corporate Showcase event at the Diamond Bar Center, one of the best facilities in the area. He attended both the assessment and community park workshops which were very well attended. It is great to have public workshops so that staff and Council can receive public input to learn what they need and want and proceed accordingly. MPT/Tye and M/Herrera and he attended the Contract Cities Municipal Update Conference. It was a great update from County Supervisors, State Senators, and State Assemblymen on a variety of things including Measure W, Measure H, several propositions and SB 50. It is our duty as elected officials to stay informed on what is happening. A hundred years ago the US passed the 19th Amendment to the Constitution which gave women the right to vote. The ultimate goal was not just to have the right to vote but give women the same freedoms as men. Although the work is never over, he believes as a nation, we have come a long way. C/Lyons attended one of the Landscape and Lighting District presentations for District No. 39 and as Mr. Bliss said, it was great to see so many residents there. The room was packed. She is hoping between those presentations and tonight’s presentation and the two weeks they have to look into this matter prior to the ballots being mailed out, that each property owner will get the information they need to make an informed decision. That same night she attended the end of the Heritage Park meeting. Staff put together four design options for Heritage Park and received resident input. It was well done but there were very few people in attendance but there will be other opportunities for public input. Two nights later there was a Parks meeting to get input into the Sunset Crossing Park and that meeting was packed and full of energy. In this instance, staff also put out four different proposals for different amenities, price tags, etc. and everyone had an opportunity to rank the different options and provide additional input. She attended the Spring Showcase at the Diamond Bar Center and as C/Chou said, it was very well done. She thinks residents tend to take for granted how nice the Diamond Bar Center is. She congratulated C/Low’s son, Ryan Wei, who received his Medical Degree (MD) this weekend. MPT/Tye attended the 60th Annual California Contract Cities Association Municipal Seminar in Indian Wells. A lot of information was forthcoming from Sheriff Villanueva and Supervisors Hahn and Barger. Congratulations to Sandra Armenta, the current Mayor of Rosemead as the incoming President of California Contract Cities. This afternoon he returned from ICSC in Las Vegas – he had two goals, one to talk to any restaurants that might be interested in coming to Diamond Bar and why it makes sense for them to come here and thank the people from Charles Company who have, in his opinion, led to a renaissance of the old Kmart facility, the new Sprouts Center. He talked with them about future occupants as well. He came away encouraged about the responses to Diamond Bar and the different retailers that are interested in talking with the City. Accordingly, ACM/McLean came back with a pocket full of business cards for follow up. The other goal MPT/Tye had was to talk with the folks at ROIC and ask what is the agenda here? Diamond Bar has lost the Whole Enchilada, a cleaner, and Rite-Aid (who intended to leave the facility anyway). The City will 6.1.b Packet Pg. 26 MAY 21, 2019 PAGE 12 CITY COUNCIL continue to see losses but he and others will keep doing their best to fill those locations and provide more amenities for Diamond Bar. M/Herrera said she appreciates MPT/Tye’s attention to bringing more businesses to Diamond Bar. Contract Cities was interesting. There were many learning centers, one of which was fascinating to her was “what do you do when you encounter an active shooter?” which was a very interesting workshop with a focus on “do you know when you’re in a room how many and wher e the exits are because one never knows when they might encounter an active shooter. It could be in a business meeting such as this evening’s meeting, it could be in a restaurant and it could be at City Hall. So, it is important to remain vigilant about one’s surroundings and take note of such things. It is always an instructional event and Contract Cities does their very best to provide learning opportunities for Council Members. ADJOURNMENT: With no further business to conduct, M/Herrera adjourned the Regular City Council Meeting at 7:44 p.m. TOMMYE CRIBBINS, CITY CLERK The foregoing minutes are hereby approved this ____ day of , 2019. CAROL HERRERA, MAYOR 6.1.b Packet Pg. 27 Agenda #: 6.2 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: PLANNING COMMISSION MEETING MINUTES. RECOMMENDATION: Receive and file. PREPARED BY: Attachments: 1. 6.2.a Regular Meeting of April 9, 2019. 6.2 Packet Pg. 28 6.2.a Packet Pg. 29 6.2.a Packet Pg. 30 6.2.a Packet Pg. 31 6.2.a Packet Pg. 32 6.2.a Packet Pg. 33 6.2.a Packet Pg. 34 6.2.a Packet Pg. 35 Agenda #: 6.3 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: PARKS AND RECREATION COMMISSION MEETING MINUTES. RECOMMENDATION: Receive and file. PREPARED BY: Attachments: 1. 6.3.a Regular Meeting of April 25, 2019. 6.3 Packet Pg. 36 6.3.a Packet Pg. 37 6.3.a Packet Pg. 38 6.3.a Packet Pg. 39 6.3.a Packet Pg. 40 Agenda #: 6.4 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: RATIFICATION OF CHECK REGISTER DATED MAY 16, 2019 THROUGH MAY 29, 2019 TOTALING $840,376.45. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Ratify. FINANCIAL IMPACT: Expenditure of $840,376.45. BACKGROUND: The City has established the policy of issuing accounts payable checks on a weekly basis with City Council ratification at the next scheduled City Council Meeting. DISCUSSION: The attached check register containing checks dated May 16, 2019 through May 29, 2019 for $840,376.45 is being presented for ratification. All payments have been made in compliance with the City’s purchasing policies and procedures. Payments have been reviewed and approved by the appropriate departmental staff and the attached Affidavit affirms that the check register has been audited and deemed accurate by the Finance Director. PREPARED BY: 6.4 Packet Pg. 41 REVIEWED BY: Attachments: 1. 6.4.a Check Register Affidavit 6-4-2019 2. 6.4.b Check Register 6-4-2019 6.4 Packet Pg. 42 6.4.a Packet Pg. 43 Agenda #: 6.5 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: TREASURER'S STATEMENT FOR APRIL 2019. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Approve. FINANCIAL IMPACT: No Fiscal Impact. BACKGROUND: Per City policy, the Finance Department presents the monthly Treasurer’s Statement for the City Council’s review and approval. This statement shows the cash balances with a breakdown of various investment accounts and the yield to maturity from investments. This statement also includes an investment portfolio management report which details the activities of investments. All investments have been made in accordance with the City’s Investment Policy. PREPARED BY: 6.5 Packet Pg. 52 REVIEWED BY: Attachments: 1. 6.5.a April 2019 Treasurer's Report 2. 6.5.b April 2019 Investment Portfolio Report 6.5 Packet Pg. 53 6.5.a Packet Pg. 54 6.5.a Packet Pg. 55 6.5.b Packet Pg. 56 6.5.b Packet Pg. 57 6.5.b Packet Pg. 58 6.5.b Packet Pg. 59 6.5.b Packet Pg. 60 Agenda #: 6.6 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: REJECTION OF CLAIM FILED BY SAN GABRIEL VALLEY WATER AND POWER, LLC. STRATEGIC GOAL: Open, Engaged & Responsive Government RECOMMENDATION: That the City Council reject the claim filed by San Gabriel Valley Water and Power, LLC. FINANCIAL IMPACT: There are no financial implications associated with rejecting the claim. The amount of the claim for damages is unspecified. BACKGROUND/ANALYSIS: On March 14, 2019, the City Clerk received a Claim for Damages from San Gabriel Valley Water and Power, LLC., alleging damages due to the transfer of the property known as Tres Hermanos. The City Attorney has determined that the claim appears to lack merit and has recommended denial of such claim. Upon action by the City Council, appropriate notice will be sent to the claimant. PREPARED BY: 6.6 Packet Pg. 61 REVIEWED BY: Attachments: 1. 6.6.a San Gabriel Valley Water and Power, LLC Claim For Damages 6.6 Packet Pg. 62 6.6.a Packet Pg. 63 6.6.a Packet Pg. 64 6.6.a Packet Pg. 65 6.6.a Packet Pg. 66 6.6.a Packet Pg. 67 6.6.a Packet Pg. 68 6.6.a Packet Pg. 69 6.6.a Packet Pg. 70 6.6.a Packet Pg. 71 6.6.a Packet Pg. 72 6.6.a Packet Pg. 73 6.6.a Packet Pg. 74 Agenda #: 6.7 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: AMENDMENT NO. 1 TO TRAFFIC SIGNAL MAINTENANCE SERVICES AGREEMENT WITH SIEMENS MOBILITY, INC. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Approve, and authorize the Mayor to sign Amendment No. 1 to Traffic Signal Maintenance Services Agreement with Siemens Mobility, Inc. for a total authorization not-to-exceed amount of $202,118.80. FINANCIAL IMPACT: Approval of Contract Amendment No. 1 will increase the total fiscal year contract amount for Siemens Mobility, Inc. (Siemens) by an additional $17,118.80 from $185,000 to $202,118.80. The approved Fiscal Year 2018-2019 Public Works Operating Budget of $275,000 for both routine and extraordinary traffic signal maintenance services is adequate for the additional expenditure. BACKGROUND/DISCUSSION: Routine maintenance services are provided on 66 signalized intersections (including shared traffic signals with Caltrans and the City of Pomona), six (6) underpass lights, and three (3) flashing beacons. On January 1, 2019, a vehicular accident occurred at the intersection of Diamond Bar Boulevard and Maple Hill Road, causing a total loss to the City’s traffic control cabinet including traffic controller, battery back-up and communication units. A full replacement work was performed by Siemens at a cost of $17,118.80. City staff also followed up and filed a claim against the responsible party’s insurance. The claim has not been approved as of this date; therefore, it is likely that reimbursement will not be received by June 30, 2019. This will result in exceeding the annual contract amount with Siemen by the amount of $17,118.80, from $185,000 to $202,118.80. 6.7 Packet Pg. 75 Therefore, Amendment No. 1 is being requested to cover the additional cost until reimbursement is received. PREPARED BY: Attachments: 1. 6.7.a FIRST AMENDMENT 6.7 Packet Pg. 76 FIRST AMENDMENT TO AGREEMENT FOR TRAFFIC SIGNAL MAINTENANCE SERVICES This First Amendment to Agreement for Signal Maintenance Services is made and entered into as of June 4, 2019, by and between the City of Diamond Bar, a municipal corporation (“City”), and Siemens Mobility, Inc. (Formerly Siemens Industry, Inc.), a California corporation (herein referred to as the “Contractor”) with reference to the following: A. The City and the Contractor entered into that certain Traffic Signal Maintenance Agreement dated as of May 2, 2017, which is incorporated herein by this reference (the “Original Agreement”); and B. The City and the Contractor desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement . NOW, THEREFORE, the parties hereby agree as follows: 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. 2. Compensation. The total not-to-exceed annual compensation set forth in Section 3 of the Original Agreement was the sum of One Hundred Eighty-Five Thousand Dollars ($185,000) for Fiscal Year 2018-2019. Section 3 of the Original Agreement is hereby amended to provide for an increase of Seventeen Thousand One Hundred Eighteen Dollars and Eighty Cents ($17,118.80) in Fiscal Year 2018-2019, so that the total no-to-exceed compensation, as amended by this First Amendment shall not exceed Two Hundred Two Thousand One Hundred Eighteen Dollars and Eighty Cents ($202,118.80) for FY2018-2019 without the prior authorization of the City. 3. Integration. This First Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negoti ations with respect hereto. This First Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control. 6.7.a Packet Pg. 77 IN WITNESS hereof, the parties enter into this First Amendment on the year and day first above written. CONTRACTOR” “CITY” Siemens Mobility, Inc. CITY OF DIAMOND BAR 1026 E Lacy Avenue Anaheim, California 92805 By: By: Printed Name: Carol Herrera, Mayor Title: By: ATTEST: Printed Name: Title: Tommye Cribbins, City Clerk APPROVED AS TO FORM: David A. DeBerry, City Attorney NOTE: If Contractor is a corporation, the City requires the following signature(s): 1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. 6.7.a Packet Pg. 78 Agenda #: 6.8 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: ADDITIONAL EXPENDITURES FOR SPECIAL LEGAL SERVICES STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Approve, and authorize the City Manager to issue, a Purchase Order in the not-to- exceed amount of $250,000 for continued special legal services provided by Sheppard, Mullin, Richter & Hampton LLP. FINANCIAL IMPACT: Sufficient funds are included in the FY 2018/2019 Budget to cover these services. BACKGROUND/DISCUSSION: In addition to the City’s primary legal representatives Woodruff, Spradlin & Smart, the City often enlists the services of additional legal experts to assist in a number of matters important to the community. The City has secured the services of Jack Rubens of Sheppard, Mullin, Richter & Hampton LLP for such special legal counsel. On February 5, 2019, the City Council approved a Settlement Agreement to resolve three lawsuits that were filed by the City related to the Tres Hermanos Ranch property. This agreement between the cities of Diamond Bar, Chino Hills and Industry brought to a close a 15-month legal battle that involved litigation challenging the sale of the Tres Hermanos Ranch from the Industry Successor Agency to the City of Industry and the Master Lease which contemplated the construction of a large solar generating facility on the 2,450 acres of undeveloped open space located along the eastern edge of the city between Diamond Bar and Chino Hills. As part of the Settlement Agreement, the existing Tres Hermanos Conservation Authority Joint Powers Agreement was re-constituted, and paved the way for the ownership of Tres Hermanos Ranch to be transferred from the City of Industry to the 6.8 Packet Pg. 79 Conservation Authority. Following the approval of the Settlement Agreement, San Gabriel Valley Water & Power filed a law suit against the City challenging the settlement agreement and transfer of the property to the Tres Hermanos Conservation Authority. Additional special lega l services are required to defend this new lawsuit. At the September 19, 2017 meeting, the City Council authorized the City Manager to execute the Letter of Engagement with Sheppard, Mullin, Richter & Hampton LLP, and appropriated $250,000 for special legal services. It was anticipated at that time that additional resources would be required. On February 6, 2018, and December 18, 2018, the City Council authorized an additional appropriation of $250,000, for a cumulative Council authorization of $750,000 to date. At this time, an additional $250,000 is requested to maintain and continue these legal services. LEGAL REVIEW: The City Attorney previously approved the Letter of Engagement. PREPARED BY: REVIEWED BY: 6.8 Packet Pg. 80 Agenda #: 8.1 Meeting Date: June 4, 2019 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: ADOPTION OF THE FY 2019-2020 CITY OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM, INCLUDING ESTABLISHMENT OF THE APPROPRIATIONS LIMIT, EMPLOYEE COMPENSATION PLAN AND INVESTMENT POLICY. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: A. Adopt Resolution No. 2019-XX approving the FY 2019-2020 City Operating Budget and Capital Improvement Program; B. Adopt Resolution No. 2019-XX establishing the appropriations limit for FY 2019- 2020 in the amount of $48,024,685; C. Adopt Resolution No. 2019-XX amending Resolution No. 2018-21 establishing a compensation plan, salary ranges and fringe benefits for all employee classifications; and D. Adopt Resolution No. 2019-XX approving the FY 2019-2020 Investment Policy. FINANCIAL IMPACT: PROGRAMS FY 2019-2020 BUDGET General Government $6,286,127 Public Safety $7,714,901 Community Development $2,115,756 Public Works $9,007,760 Parks & Recreation $3,428,564 Debt Service $860,806 Internal Service $1,721,576 Subtotal – Operating Budget $31,135,490 Capital Improvement Program $8,581,574 8.1 Packet Pg. 81 Total FY 2019-2020 Budget $39,717,064 BACKGROUND: A. FY 2019-2020 Operating Budget and Capital Improvement Program Each year the City Manager prepares and submits a draft municipal budget for review and adoption. The draft budget for FY 2019-2020 was presented to the City Council during study sessions held on April 16 and May 21, 2019. The proposed budget implements the City Council’s priorities and strategic goals, provides a financial plan that continues the delivery of first -rate services to the community and is responsive to the needs of our residents. The allocation of resourc es is guided by the three overarching goals found in the City’s adopted 2017 -2020 Strategic Plan which includes: Responsible Stewardship of Public Resources Open, Engaged & Responsive Government Safe, Sustainable & Healthy Community The proposed FY 2019-2020 budget (Attachment 1) is a comprehensive funding package that is conservative in revenue and expenditure growth while providing the desired services, programs and projects that benefit the residents and businesses of Diamond Bar. Estimated General Fund resources are approximately $26.7 million including the use of approximately $897,000 in reserves for several Capital Improvement carryover projects and for the subsidy of ongoing operations in the Lighting and Landscape Assessment Districts. The proposed General Fund Operating Budget expenditures total an estimated $26.5 million and the Capital Improvement Program totals approximately $8.6 million. ESTIMATED GENERAL FUND RESOURCES - $26,670,548 The following highlighted items have been incorporated into the revenue estimates: Property Taxes – The assessed valuation of parcels in the City increased by 4.63% during FY 18/19. This will result in an overall increase to property tax revenue of 3.4% over the anticipated FY 18/19 amount of $5.4 million to $5.6 million. Property Tax in Lieu of VLF is anticipated to increase 3.7% to $6.5 million during FY 19/20 Sales Tax - Sales tax revenue is projected to decrease by 2.9% over the expected FY 2018-2019 amount to $5.02 million. This decrease is due to an already slowing economy which is expected to continue into the new fiscal year. Current Service Charges - With the remainder of the South Pointe housing development permits being issued in early FY 2018-2019, it is anticipated that FY 2019-2020 building activity will return to pre-development levels which means significantly lower revenue than the City has seen during the last few budget cycles. 8.1 Packet Pg. 82 Revenue from all sources of service charges (which include Building, Planning, Engineering and Recreation fees) are estimated to be down 15.8% or a total of 433,000. ESTIMATED GENERAL FUND APPROPRIATIONS - $26,497,599 The following highlights have been incorporated into the expenditure estimates: Public Safety - The annual increase to the FY 2019-2020 law enforcement contract rate is 4.91% (rounded to 5% in the budget). The Liability Trust Fund rate applied to each position for FY 2019-2020 is 11%. An additional $100,000 is proposed from the Law Enforcement Reserve Fund for special assignments and suppression patrols which have proven to be a cost-effective approach to reducing crime and responding to specific public safety issues throughout the year. The FY 2018 -2019 LA Sheriff Contract Budget totals $6,923,660, or approximately 26.1% of the operating budget expenditures. In addition, $150,000 is included in the Engineering Division operating budget for Safe Routes to School Updates consistent with the new Strategic Plan Item. Safe Route to School Grants would be sought to off -set this expense. The City currently provides for 17 Crossing Guards at 8 elementary schools and 2 middle schools. The total budget for crossing guard services is $187,000 which is a $13,000 increase over the previous year. Parks & Recreation – FY 18/19 saw the formation of the Special Events Sub- Committee which looked at the City’s existing special events schedule and determined what mix of events would best represent the wants and needs of the residents of Diamond Bar. Based on the Sub-Committee recommendations and City Council concurrence, the program changes resulted in a savings of approximately 165,000. Economic Development - The amount included in the FY 2019-20 budget is down 34,700 from FY 2018-19 based on estimated as-needed services. The proposed budget includes $22,500 for the Restaurant Week program. Use of General Fund Reserves – The proposed FY 2019-2020 General Fund budget includes the following use of reserves to fund the following expenditures: o Capital Improvement Projects (CIP) $467,459 – There are a few CIP projects that are anticipated to be in progress but not complete by June 30, 2019. Appropriated funds for these projects will need to be “carried over” into FY 20 19- 2020. These projects include the completion of the Sycamore Canyon Park Slope Erosion Repairs, Sycamore Canyon Creek Repair and the Sunset Crossing Park Design. There are no new projects scheduled to use General Fund reserves FY 2019-2020. o Lighting & Landscape Assessment Districts (LLAD) $429,068 – As in previous years, the General Fund has subsidized the LLADs. Every effort was made to keep costs down but with rising costs and a fixed amount of property tax 8.1 Packet Pg. 83 assessment revenue available, General Fund reserves are required to fund the deficit in each district. The table below summarizes the level of subsidy required in each area. As the Council is aware, staff is in the process of conducting a Proposition 218 election to determine if property owners are in favor of increasing the property tax assessments in District #39 & #41. Meetings were held May 13 and 14 and information has been mailed to all affected property owners. The results of the election are expected in mid-July 2019. If successful, the General Fund subsidies could be reduced by as much as $367,000. LLAD District Proposed Expenditures Est. Assessment Resources Est. General Fund Resources 38 $336,829 $276,330 $60,499 39 $463,832 $294,764 $169,068 41 $321,658 $122,157 $199,501 Total $1,122,319 $693,251 $429,068 Special Funds – Special Funds are generally used to set aside General Fund revenue from one year for a specific purpose over more than one budget cycle. This ensures that the funds will not go into General Fund reserves at the end of the year or get reprogrammed for other purposes in future years. As previously mentioned, up to $100,000 will be transferred from the Law Enforcement Reserve Fund to the General Fund to pay for as-needed additional special assignments and suppression patrols throughout the City. Special Revenue Funds - The City has several special revenue funds which account for and report proceeds for specific revenue sources that are restricted for specified purposes. Some examples of special revenue funds utilized by the City include Measure R Fund, Prop A & C Funds and the Lighting and Landscape District Funds. Each of these funds has a specific revenue source and strict guidelines as to how those resources may be spent. The City uses these restricted resources to pay for things such as street slurry seal projects, transit related programs, park projects and solid waste reduction programs. As part of the proposed budget, Special Revenue fund (Fund 107) is included and described below: The Safe Clean Water Act (ACW Program) also known as Measure W was approved by the voters in November 2018. The revenue generated from this measure is intended to maximize the ability of local governments to address local storm water and urban runoff challenges and is to be used for water quality improvements within the City. It is estimated that the City will receive $900,000 annually as part of this program. During FY 2019-2020 staff has identified 4 capital improvement projects that these funds are an appropriate funding source. 8.1 Packet Pg. 84 Internal Service Funds – These funds are used to track the City’s shared costs such as liability and worker’s compensation insurance, vehicle maintenance and replacement, equipment maintenance and replacement and building and facility maintenance. These internal service funds generally receive their funds from a transfer in from the General Fund. Capital Improvement Fund - The FY 2019-2020 Capital Improvement Projects CIP) list includes projects that total $8.6 million of which $4.4 million are project carryovers from FY 2018-2019 with the balance of $4.2 million which are new projects. Included in the new projects for FY 2019-2020 are three new street improvement projects, two traffic management projects, two bus shelter replacements, a groundwater drainage improvement project and two park projects. The CIP was reviewed for consistency with the City’s General Plan at the May 14, 2019 Planning Commission Meeting. Maintenance and operation costs related to capital improvement projects completed during the fiscal year are programmed in the Public W orks Operating Budget and may include additional contract maintenance services, additional engineering support services and supplies needed to maintain various capital investment projects. B. FY 2019-2020 Appropriations Limit Pursuant to Article XIIIB of the California Constitution (known as the Gann Limit), the City must compute an annual appropriations limit. This appropriations limit will place a ceiling on the City’s total amount of tax revenues and the total amount of appropriations. The appropriation limit can be calculated by the use of one of the following factors: Based on the growth factor of County population change over the prior year and the change in the California per capita income over the prior year. Based on the growth factor of City population change over the prior year and the change in the California per capita income over the prior year. Based on the growth factor of change in the City’s non -residential new construction valuation and the change in the County or City population. The recommended factor to compute the appropriation limit is based on the growth factor of change in the County population change over the prior year and the change in the California per capita income over the prior year. By using this factor , the City will have an appropriation limit of $48,024,685 for Fiscal Year 2019-2020 (Attachment 2). The City’s total proposed appropriations subject to the limitation is $35,404,570 which is 12,620,115 less than the FY 2019-2020 limit of $48,024,685. C. FY 2019-2020 Compensation Plan Each year, the City Council adopts the Compensation and Benefits Plan for the Each 8.1 Packet Pg. 85 year, the City Council adopts the Compensation and Benefits Plan for the upcoming fiscal year which includes employee positions, associated salary ranges and benefits. The City’s Personnel Rules and Regulations specify that the City Manager may request that the City Council authorize a Cost of Living Adjustment (COLA) for employees based on the March-to-March rates of the federal Consumer Price Index (CPI) for Wage Earners and Clerical Workers in Los Angeles/Orange Counties. Although the CPI was 2.7% during the established 2019 measurement period, the recommendation is for a 2.0% COLA for all benefitted classifications of employment including all executi ve positions such as Department Heads, Assistant City Manager and the City Manager position. Additionally, the City Manager’s contract provides that the annual salary shall be maintained at 15% above the Assistant City Manager. The City Manager’s salary would therefore need to increase from $219,504 (inclusive of the proposed COLA) to 227,049, an additional 3.44% or $7,545. It is also recommended that a $50 per month increase to the Benefit Allotment be approved for all benefitted classifications of em ployment including the executive positions and the members of the City Council to keep up with health premium rate increases. With the monthly Benefit Allotment increase, full -time non-exempt staff will receive $1,370 and full-time exempt staff and City Council Members will receive $1,400 to be used towards health benefits. The approximate annual cost to implement these actions is $165,163. Minimum Wage: Effective January 1, 2020, California’s minimum wage will rise to $13 per hour. Adjustments to the Part-Time salary schedule to comply with state law will have a negligible impact based on the current makeup of the part -time staff. Moving forward, the Minimum Wage increases to $14 per hour in 2021 and $15 per hour in 2022 will have more significant financial implications. CalPERS Unfunded Pension Liability: Each year, as part of its required contributions to CalPERS, the City must make a payment towards the City’s unfunded pension liability. CalPERS has set the minimum payment due each year which is based on a 30-year amortization schedule. The City makes this payment each July and by making a voluntary lump sum payment (rather than a monthly payment) in order to realize a 3.5% discount. As presented in the Long-Term Financial Forecast, it is estimated that if the City pays this liability down over 15 years the savings would be approximately $1.9 million. During FY 19/20 it is proposed that the City pay approximately $520,000 as set forth in the 15-year amortization schedule vs. the $341,000 it would have paid if using the 30-year amortization schedule ($179,000 net difference). Personnel: The City Council has made the development and maintenance of a professional and effective workforce to serve the public a priority. It is the duty and responsibility of the City Manager to periodically review departmental operations and staffing structures for efficient, cost effective, and economical delivery of services to the public and to conduct long-term organizational and succession planning. Within a four - month period between November 2018 and February 2019, the Engineering Division of the Public Works Department accepted the resignations of an Assistant/Associate Engineer and Senior Civil Engineer, reducing division staffing levels by 50%. The department also has a vacant Maintenance Worker/Senior Maintenance Worker 8.1 Packet Pg. 86 position which has proven difficult to recruit for and retain over the past several years. With these vacancies, contract services have been engaged to ensure service expectations are met. Following a thorough review of the current operational, technical and staffing needs of the department, the following recommendations are proposed: Add three new job classifications and fund the positions, as follows: o Public Works Manager/Assistant City Engineer This position would replace the vacant Senior Civil Engineer position and provide management oversight of the three divisions within the Public Works Department (Engineering, Street Maintenance, and Parks & Facilities). The position would also serve as the Assistant City Engineer, providing support for the Capital Improvement Program, Traffic Engineering/Management functions, and general departmental administration. The recommended salary schedule placement is 46E ($106,811.32 - 143,137.38) as an Exempt Manager with commensurate benefits, resulting in an annual net salary increase between $5,583 and 7,481. o Engineering Technician This position would replace the vacant Assistant/Associate Engineer position and would be primarily dedicated to the public counter assisting with the development review process and other public inquires to the Engineering Division. This is intended to improve customer service and provide greater coordination with planning and building through the development review process. The recommended salary schedule placement is 17NE ($52,225.63 69,987.34) as a non-exempt overtime eligible employee with commensurate benefits, resulting in an annual net salary decrease between $27,242 and $36,507. o Public Works Inspector The City relies heavily on contract services for public works inspections of streets and other City infrastructure. By bringing the work in-house, the City would realize an estimated $250,000 in annual savings based on the proposed Capital Improvement Projects and other work within the City’s Rights-of-Way. The recommended salary schedule placement is 17NE ($52,225.63 - 69,987.34) as a non-exempt overtime eligible employee with commensurate benefits. The position would replace the vacant Maintenance Worker/Senior Maintenance Worker position and result in a net annual salary increase between $8,290 and $11,100. 8.1 Packet Pg. 87 o Adjust the Senior Civil Engineer salary schedule and defund the position. It is recommended that the salary range for this position be adjusted 10% downward from 44E to 40E ($90,294.40 - 121,003.14). This recommendation is based on the City’s labor market survey group and is in line with the commensurate job duties of a Senior Civil Engineer. Defund one (1) of the three (3) Assistant/Associate Engineer positions. Defund one (1) of the four (4) Maintenance Worker/Senior Maintenance Worker positions. In summary, the proposed reorganization maintains the same number of personnel and reduces reliance on contract services by approximately $250,000 annually, thereby resulting in an annual net savings of approximately $263,369 to $267,926. Considering the other personnel related items, including the COLA/Benefit Allotment and Alternative Retirement Program for Part-Time Employees, there is an overall annual net savings of approximately $132,886 to $149,003. These actions will be effective at the beginning of the first pay period closest to July 1, 2019 which is July 6, 2019. D. FY 2019-2020 Investment Policy The Investment Policy states the goals of the City’s investment activities, the types of investments in which the City is allowed to invest its funds and the reporting requirements. In January 2018, the City Council adopted an updated Investment Policy which was prepared in accordance with the provisions outlined in the California Municipal Treasurer’s Association (CMTA) Investment Policy Certification Program. CMTA is solely focused on public agency treasury management in the State of California which lends itself more closely to the City’s investment requirements and goals. The Investment Policy was submitted to CMTA and was certified with a score of 95 out of 100 points possible. There are two minor proposed changes to the Investment Policy for FY 2019-2020 since the last revision in June 2018. (See Attachment 4 for the proposed policy). The first proposed change is regarding the broker list maintained by the City Treasurer or Finance Director). Previously the broker information was embedded in the policy document. This practice made it more cumbersome to add or delete brokers during the course of the fiscal year due to the fact that City Council would need to amend the Investment Policy each time a broker would change. This list shall be referenced in the Investment Policy but as a practice, kept as a separate document that can be updated administratively as needed. 8.1 Packet Pg. 88 The second proposed change is to update the amount allowed in the Local Agency Investment Fund (LAIF) to $65 million which is the current balance per account permitted by the State of California. PREPARED BY: REVIEWED BY: Attachments: 1. 8.1.a Reso 2019-xx FY 19-20 Budget 2. 8.1.b FY 19-20 Budget 3. 8.1.c Reso 2019-xx Gann Limit FY 19-20 4. 8.1.d Reso 2019-xx Salary & Comp FY 19-20 5. 8.1.e Reso 2019-xx Investment Policy FY 19-20 8.1 Packet Pg. 89 1 RESOLUTION NO. 2019-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING AND ADOPTING THE CITY OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM FOR THE CITY OF DIAMOND BAR FOR THE FISCAL YEAR COMMENCING JULY 1, 2019 AND ENDING JUNE 30, 2020 AND APPROPRIATING FUNDS NECESSARY TO MEET THE EXPENDITURES SET FORTH THEREIN WHEREAS, the City Manager has submitted for the consideration of the City Council a proposed City Operating Budget and City Capital Improvement Program for FY 2019-2020; WHEREAS, the proposed Operating Budget and City Capital Improvement Program for FY 2019-2020 was reviewed and considered in two public budget study sessions and in a public City Council meeting; WHEREAS, the Planning Commission of the City of Diamond Bar has publicly reviewed the proposed Capital Improvement Program for FY 2019-2020 and found it to be in conformity with the City’s General Plan as required by California Government Code Section 65401; WHEREAS, copies of the City Operating Budget and Capital Improvement Program for FY 2019-2020 are on file in the office of the City Clerk labeled “City of Diamond Bar FY 2019-2020 Budget” and said Budget is made a part of this Resolution and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows: Section 1. The City Council has reviewed the proposed Operating Budget and Capital Improvement Program and the funds included therein for the fiscal year (FY) commencing July 1, 2019 through June 30, 2020 and hereby finds that such budgets, as revised, are sound plans for the financing during FY 2019-2020 of required City operations, services and capital improvements. Such budgets are hereby adopted and appropriated as follows: Programs FY 2019-2020 Budget General Government $6,286,127 Public Safety $7,714,901 Community Development $2,115,756 Public Works $9,007,760 Parks & Recreation $3,428,564 8.1.a Packet Pg. 90 2 Debt Service $860,806 Internal Service $1,721,576 Subtotal – Operating Budget $31,135,490 Capital Improvement Program $8,581,574 Total FY 2019-2020 Budget $39,717,064 Section 2. The City Manager is hereby authorized to transfer funds appropriated hereby or by supplemental appropriation as follows: with respect to departments, the City Manager may transfer amounts between and within departments, but only within a fund. Section 3. Encumbrances for all funds at the end of FY 2018-2019 will be re-appropriated for continued use in FY 2019-2020. PASSED, APPROVED AND ADOPTED this 4th day of June, 2019. Carol Herrera, Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 4th day of June, 2019, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Tommye Cribbins, City Clerk 8.1.a Packet Pg. 91 City of Diamond Bar ANNUAL BUDGET Fiscal Year 2019 - 2020 21810 Copley Drive, Diamond Bar, CA 91765 l p: 909.839.7000 l www.diamondbarca.gov 8.1.b Packet Pg. 92 GOVERNMENT FINANCE OFFICERS ASSOCIATION The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Diamond Bar, California, for its Annual Budget for the fiscal year beginning July 1, 2018. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to the program requirements, and we are submitting it to GFOA to determine its eligibility for another award. BUDGET AWARDS City of Diamond Bar, California 2 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 93 CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS The California Society of Municipal Finance Officers (CSMFO), presented its Operating Budget Meritorious Award to the City of Diamond Bar, California for its Fiscal Year 2018 -2019 Budget. The City of Diamond Bar is confident that the Fiscal Year 2019-2020 Budget will continue to conform to award requirements. BUDGET AWARDS City of Diamond Bar, California 3 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 94 Section 1: Introduction 7 City Leadership 8 Organizational Structure 9 City Manager’s Budget Message 10 City Council’s Budget Resolution 18 Section 2: Community Profile 20 Diamond Bar at a Glance 21 Community Snapshot 22 Section 3: Strategic Plan 23 2017-2020 Strategic Plan; Year 3 Update 24 Section 4: Guide to the Budget 39 What is the Budget?40 Basis of Budgeting 41 Budget Process 42 Fund Structure 43 Financial Policies 44 Section 5: Financial Summaries 46 Consolidated Financial Schedule 47 Three Year Consolidated and Fund Financial Schedules 48 Fund Balance 50 Section 6: Revenue Overview 52 Revenue Descriptions 53 General Fund Revenue Overview 62 Section 7: Expenditure Overview 65 Expenditure Summary 66 Departmental City Administration 69 City Council 70 City Attorney 72 City Manager/City Clerk 74 Administration & Support 76 Finance 77 Human Resources & Risk Management 79 Health & Safety Program 81 Information Systems 83 Civic Center 85 Public Information 87 Economic Development 89 Public Safety 91 Law Enforcement 92 Volunteer Patrol 94 Fire Protection 96 Animal Control 98 Emergency Preparedness 100 TABLE OF CONTENTS City of Diamond Bar, California 4 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 95 Community Development 102 Planning 103 Building and Safety 105 Neighborhood Improvement 107 Parks & Recreation 109 Diamond Bar Center Operations 111 Recreation 113 Public Works 114 Public Works Administration 116 Engineering 117 Road Maintenance 118 Parks & Facilities Maintenance 119 Landscape Maintenance 120 Transfers Out 121 Citywide Personnel 122 Personnel Summary 122 Full-Time Benefited Personnel Summary 123 Part-Time Benefited Personnel Summary 125 Part-Time Non-Benefited Personnel Summary 126 Section 8: Special Fund Overview 127 011 - Community Organization Support Fund 128 012 - Law Enforcement Fund 129 015 - General Plan Revision Fund 130 018 - Technology Reserve Fund 131 020 - Other Post Employment Benefits Fund 132 Section 9: Special Revenue Fund Overview 133 107 - Measure W Fund 134 108 - Road Maintenance & Rehabilitation Fund 135 109 - Measure M Fund 136 110 - Measure R Fund 137 111 - Gas Tax Fund 138 112 - Prop A Transit Fund 139 113 - Prop C Transit Fund 140 115 - Integrated Waste Management Fund 141 116 - Traffic Imp Fund 143 117 - Sewer Mitigation Fund 144 118 - AB2766 Fund 145 119 - SB821 Fund 146 120 - MTA Grants Fund 147 121 - Waste Hauler Fund 148 122 - Quimby Fees Fund 149 123 - Prop A-Safe Neighborhood Parks Fund 150 124 - Park & Facility Development Fund 151 125 - Community Development Block Grant Fund 152 126 - Citizens Option for Public Safety Fund 153 128 - CA Law Enforcement Equipment Program (CLEEP) Fund 154 TABLE OF CONTENTS City of Diamond Bar, California 5 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 96 131 - Street Beautification Fund 155 132 - Measure A Neighborhood Parks Act Fund 156 133 - CASP SB1186 Fund 157 134 - Tres Hermanos Conservation Authority Fund 158 135 - Public Educational Governmental Fees Fund 159 138 - Lighting & Landscape Assessment District 38 Fund 160 139 - Lighting & Landscape Assessment District 39 Fund 161 141 - Lighting & Landscape Assessment District 41 Fund 162 160 - Use Oil Grant Fund 163 161 - Beverage Recycling Grant Fund 164 Section 10: Capital Improvement Projects Fund 165 250 - Capital Improvement Project List 166 250 - Capital Improvement Project Detail 170 250 - Capital Improvement Projects Fund 194 Section 11: Debt Service Fund Overview 196 370 - Debt Service Fund 197 Section 12: Internal Service Fund Overview 198 510 - Self Insurance Fund 199 520 - Vehicle Replacement Fund 200 530 - Equip Replacement Fund 201 540 - Building Facility & Maintenance Fund 202 Section 13: Fiduciary Fund 203 620 - Other Post Employment Benefits Trust Fund 204 Appendix 205 Glossary 206 City of Diamond Bar Appropriation Limit Calculation 209 TABLE OF CONTENTS City of Diamond Bar, California 6 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 97 7 8.1.b Packet Pg. 98 City Manager - Daniel Fox Assistant City Manager - Ryan McLean City Clerk - Tommye Cribbins Community Development Director - Greg Gubman Finance Director - Dianna Honeywell Human Resources and Risk Manager - Amy Haug Information Systems Director - Ken Desforges Parks and Recreation Director - Ryan Wright Public Information Manager - Marsha Roa Public Works Director - David Liu CITY LEADERSHIP City of Diamond Bar, California 8 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 99 ORGANIZATIONAL STRUCTURE City of Diamond Bar, California 9 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 100 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 10 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 101 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 11 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 102 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 12 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 103 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 13 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 104 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 14 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 105 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 15 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 106 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 16 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 107 CITY MANAGER'S BUDGET MESSAGE City of Diamond Bar, California 17 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 108 CITY COUNCIL'S BUDGET RESOLUTION City of Diamond Bar, California 18 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 109 CITY COUNCIL'S BUDGET RESOLUTION City of Diamond Bar, California 19 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 110 City of Diamond Bar, California 20 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 111 DIAMOND BAR AT A GLANCE City of Diamond Bar, California 21 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 112 COMMUNITY SNAPSHOT City of Diamond Bar, California 22 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 113 City of Diamond Bar, California 23 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 114 City of Diamond Bar, California 24 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 115 City of Diamond Bar, California 25 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 116 City of Diamond Bar, California 26 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 117 City of Diamond Bar, California 27 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 118 City of Diamond Bar, California 28 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 119 City of Diamond Bar, California 29 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 120 City of Diamond Bar, California 30 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 121 City of Diamond Bar, California 31 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 122 City of Diamond Bar, California 32 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 123 City of Diamond Bar, California 33 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 124 City of Diamond Bar, California 34 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 125 City of Diamond Bar, California 35 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 126 City of Diamond Bar, California 36 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 127 City of Diamond Bar, California 37 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 128 City of Diamond Bar, California 38 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 129 City of Diamond Bar, California 39 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 130 The budget is an annual financial plan for the City of Diamond Bar. It specifies the level of municipal services to be provided in the coming year and reflects strategic priorities set by the City Council. The City of Diamond Bar's budget is designed to serve five major purposes: 1. Definition of policy in compliance with legal requirements for General Law cities in the State of California, Governmental Accounting Standards Board (GASB) financial reporting requirements and audit standards, and fiscal directions of the City Council. 2. Prepare the budget in conformity with Generally Accepted Accounting Principles using the modified accrual basis of accounting. 3. Utilization as an operations guide for administrative staff in the management and control of fiscal resources. 4. Presentation of the City's financial plan for the ensuing fiscal year, itemizing projected revenues and estimated expenditures. 5. Illustration as a communications document for citizens who wish to understand the operations and costs of City services. WHAT IS THE BUDGET? City of Diamond Bar, California 40 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 131 The City of Diamond Bar's annual operating budget is prepared in conformity with Generally Accepted Accounting Principles (GAAP), using the modified accrual basis of accounting. Under this method of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current fiscal period while expenditures are recognized in the accounting period in which the liability is incurred. Each of the City's funds is considered a separate accounting entity with a self-balancing set of accounts that records assets, liabilities, fund equity, revenue and expenditures. Funds are established and segregated for the purpose of recording specific programs or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The General Fund accounts for all the general revenue of the City not specifically levied or collected for other City funds and for expenditures related to rendering the general services provided by the City. The City of Diamond Bar has twenty-nine Special Revenue Funds that are used to account for specific revenues that are legally restricted to expenditure for particular purposes. The Capital Project Fund is used to account for the purchase or construction of major capital facilities. The Debt Service Fund is used to account for principal and interest payments on outstanding fixed rate bonds. Internal Service Funds are used to account for goods and services provided to other departments within the City such as liability insurance and equipment replacement. The budget is prepared on a line item basis by fund and department. The six major General Fund divisions are: Legislative Administration & Support Public Safety Community Development Parks & Recreation Public Works BASIS OF BUDGETING City of Diamond Bar, California 41 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 132 BUDGET AMENDMENT PROCESS The City Manager is responsible to the City Council for the faithful execution of the City Budget. In order to ensure authorized expenditures are managed in the most efficient and economical manner possible, the City Council authorizes the City Manager to increase or transfer appropriations within the General Fund, Special Revenue Fund or any other unrestricted Fund. The City’s budget may be amended in the following ways: If a fund has an Undesignated Fund Balance during the Fiscal Year, the City Manager may approve requests for budget increases with Council approval. Budget adjustments between a department’s line items with a null effect on the overall department budget may be made with the City Manager’s approval. During the fiscal year, the City Council may modify approved programs and activities or implement new activities that may require budget amendments. On such occasions when the Council approves a project without amending the budget, that approval will constitute authority for the Finance Director to amend the budget subject to the City Manager’s approval. BUDGET PROCESS City of Diamond Bar, California 42 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 133 DESCRIPTIONS General Fund is the most versatile fund and is used to account for any legal budgetary purpose not accounted for elsewhere in the budget. Debt Service Funds are used to account for debt payments owed by the City. Capital Improvement Project Funds are used to account for the purchase or construction of major capital projects, which are not financed by proprietary, special assessment or trust funds. Special Revenue Funds are used to account for certain funds, which are legally restricted to certain purposes. Internal Service Funds account for a department of a governmental agency, which provides services to other departments of the agency. The costs of all or a part of the operations and the provision of services are recovered through fees charged to the user departments. Fiduciary (Trust And Agency) Funds account for assets held by the City in a trustee capacity or as agency for individuals, private organizations, other governments, and/or other funds. FUND STRUCTURE City of Diamond Bar, California 43 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 134 The City’s budget development is shaped by several financial and operational polices. These policies promote and ensure organizational continuity, consistency, transparency, and responsibility from year to year. This section identifies some of the major short and long- term planning documents, financial and operational policies, and fiscal management tools that the City of Diamond Bar employs in order to guarantee fiscal and programmatic integrity and to guide the development of the City’s budget. Annual Budget and Financial Reporting Policy The purpose of this policy is to ensure a balanced annual operating budget and reporting procedures to safeguard public funds and maximize resources available for use by the City in delivering programs and services. CAL Card Use Policy The City of Diamond Bar has joined the CAL Card program which is administered through the State General Services Division and US Bank. This program provides a mechanism for government agencies to provide purchasing cards to their employees to expedite purchases of goods and services. This policy sets forth policies and procedures for CAL Card usage. Compensation for City Commissioners/Committee Members The purpose of this policy is to establish compensation for attendance at Commission/ Committee Meetings for City Commissioners/Committee Members. Drawing Warrants and Checks Upon City Funds California State law requires the Mayor and City Clerk to execute and countersign all warrants and checks issued for payment from City funds. Government Code Section 37203 provides that the City Council may prescribe an alternative method for drawing warrants and checks. Through adoption of this Policy, the City Council established an alternative method to insure the timely drawing of warrants and checks upon City funds. Travel, Expense and Reimbursement Policy The City of Diamond Bar recognizes the value of attendance by City officials and employees at professional conferences, seminars, meetings with other government officials, professional organizations, community organizations, and constituents and ceremonial events and activities that promote or benefit the City. This policy establishes travel authorization, expense, reimbursement, and reporting standards consistent with the provisions of this policy and in compliance with California Government Code Sections 53232.2 and 53232.3. Fixed Asset Capitalization and Inventory Control Policy The purpose of this policy is to ensure adequate control and appropriate use of City fixed assets. The procedures are intended to define fixed assets and to establish guidelines for budgeting, purchasing and disposing fixed assets. This policy does not apply to infrastructure assets. FINANCIAL POLICIES City of Diamond Bar, California 44 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 135 Anti-Fraud Policy To establish policy and procedures for clarifying acts that are considered to be fraudulent, describing the steps to be taken when fraud or other related dishonest activities are suspected, and providing procedures to follow in accounting for missing funds, restitution and recoveries. Cash Handling Policy The purpose of this policy is to safeguard public funds and also to maximize resources available for use by the City in delivering programs and services. These policies recognize the decentralized nature of the receipting and depositing process, while providing for standardized procedures. Fund Balance and Reserves Policy The purpose of this policy is to establish a key element of the financial stability of the City by setting guidelines for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur for unforeseen revenue fluctuations, unanticipated expenditures, and other unexpected circumstances. The fund balance also provides cash flow liquidity for the City's general operations. Capital Financing and Debt Management Policy The purpose of this policy is to provide guidelines for the City's utilization of capital financing and debt for capital improvement projects, property acquisition, and projects whose useful life will exceed the term of the financing. Unclaimed Funds Policy The purpose of this policy is to establish the proper disposition and accounting for unclaimed money in accordance with Government Code Sections 50050 through 50056. FINANCIAL POLICIES City of Diamond Bar, California 45 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 136 City of Diamond Bar, California 46 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 137 SUMMARY OF ESTIMATED FINANCIAL SOURCES & USES - ALL FUNDS General Fund Special Funds Special Revenue Funds Capital Projects Fund Debt Service Fund Internal Service Funds Fiduciary Funds Total EST. FUND BAL @ 6/30/2019 $17,338,263 $1,566,077 $12,686,648 $10,673 $199 $3,323,935 $329,760 $35,255,555 Estimated Revenues Property Taxes $5,577,160 $—$1,593,251 $—$—$—$—$7,170,411 Other Taxes 8,075,000 — 6,341,869 ———— 14,416,869 State Subventions 6,519,465 —————— 6,519,465 From Other Agencies —— 1,634,863 678,328 ——— 2,313,191 Fines & Forfeitures 430,000 —————— 430,000 Current Service Charges 2,311,810 36,000 1,314,000 ———— 3,661,810 Use Of Money & Property 1,503,500 — 74,800 —100 26,500 5,000 1,609,900 Cost Reimbursements 127,150 — 91,470 ———— 218,620 Transfers In 1,229,936 20,000 499,068 7,903,246 860,706 596,451 88,000 11,197,407 Use of Reserves 896,527 440,700 1,456,841 —— 1,098,625 — 3,892,693 Total Revenue $26,670,548 $496,700 $13,006,162 $8,581,574 $860,806 $1,721,576 $93,000 $51,430,366 Expenditures by Function City Administration $1,996,788 $20,000 $—$—$—$—$—$2,016,788 Administration & Support 4,180,639 20,000 68,700 ———— 4,269,339 Public Safety 7,694,901 — 20,000 ———— 7,714,901 Community Development 1,733,149 268,700 113,907 ———— 2,115,756 Parks & Recreation 3,428,564 —————— 3,428,564 Public Works 5,019,874 — 3,987,886 ———— 9,007,760 Capital Projects ——— 8,581,574 —— 8,581,574 Debt Service ———— 860,806 —— 860,806 Internal Service ————— 1,721,576 — 1,721,576 Transfers Out 2,443,684 188,000 8,565,723 ———— 11,197,407 Total Expenditures $26,497,599 $496,700 $12,756,216 $8,581,574 $860,806 $1,721,576 $—$50,914,471 Use of Reserves $896,527 $440,700 $1,456,841 $—$—$1,098,625 $—$3,892,693 EST. FUND BAL @ 6/30/2020 $16,614,685 $1,125,377 $11,479,753 $10,673 $199 $2,225,310 $422,760 $31,878,757 Net Change In Fund Balance (723,578)(440,700)(1,206,895)—— (1,098,625)93,000 (3,376,798) Percentage of Change (4.2)%(28.1)%(9.5)%—%—%(33.1)%28.2%(9.6)% CONSOLIDATED FINANCIAL SCHEDULE City of Diamond Bar, California 47 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 138 SUMMARY OF ESTIMATED FINANCIAL SOURCES & USES - ALL FUNDS in Thousands of Dollars) Governmental Funds Proprietary Funds Fiduciary Funds Total General Fund CIP Fund Non-Major Funds Internal Service Funds OPEB Trust Fund All Funds 2018 Actual 2019 Est Actual 2020 Budget 2018 Actual 2019 Est Actual 2020 Budget 2018 Actual 2019 Est Actual 2020 Budget 2018 Actual 2019 Est Actual 2020 Budget 2018 Actual 2019 Est Actual 2020 Budget 2018 Actual 2019 Est Actual 2020 Budget Financial Sources Property Taxes $5,158 $5,361 $5,577 $—$—$—$684 $691 $1,593 $—$—$—$—$—$—$5,842 $6,052 $7,170 Other Taxes 7,844 8,012 8,075 — — — 4,778 5,682 6,342 — — — — — — 12,622 13,694 14,417 State Subventions 6,040 6,316 6,519 — — — —— — — — — — — — 6,040 6,316 6,519 From Other Agencies — 888 — 290 339 678 1,456 2,356 1,635 — — — — — — 1,746 3,583 2,313 Fines & Forfeitures 460 415 430 — — — —— — — — — — — — 460 415 430 Current Service Charges 3,188 2,745 2,312 — — — 1,213 7,330 1,350 — — — — — — 4,401 10,075 3,662 Use Of Money & Property 1,005 1,338 1,504 — — — 113 107 75 29 26 27 7 2 5 1,154 1,473 1,611 Cost Reimbursements 127 216 127 — — — 7 17 91 — — — — — — 134 233 218 Transfers In 1,099 962 1,230 4,563 5,639 7,903 1,243 1,495 1,380 906 2,250 596 85 87 88 7,896 10,433 11,197 Use of Reserves 2,634 5,228 896 — — — —— 1,899 — — — — — — 2,634 5,228 2,795 Total Financial Sources $27,555 $31,481 $26,670 $4,853 $5,978 $8,581 $9,494 $17,678 $14,365 $935 $2,276 $623 $92 $89 $93 $42,929 $57,502 $50,332 Financial Uses City Administration $2,304 $3,735 $1,997 $—$—$—$15 $20 $20 $—$—$—$—$—$—$2,319 $3,755 $2,017 Administration & Support 3,682 4,052 4,181 — — — 14 16 89 — — — — — — 3,696 4,068 4,270 Public Safety 6,886 7,230 7,695 — — — 17 20 20 — — — — — — 6,903 7,250 7,715 Community Development 1,739 1,826 1,733 — — — 415 255 382 — — — — — — 2,154 2,081 2,115 Parks & Recreation 2,885 3,469 3,429 — — — 35 50 — — — — — — — 2,920 3,519 3,429 Public Works 5,270 5,400 5,020 — — — 3,167 4,820 3,988 — — — — — — 8,437 10,220 9,008 Capital Projects —— — 4,611 5,919 8,581 62 30 — — — — — — — 4,673 5,949 8,581 Debt Service —— — — — — 859 858 861 — — — — — — 859 858 861 Internal Service —— — — — — —— — 827 1,613 1,722 — — — 827 1,613 1,722 Transfers Out 2,870 4,956 2,443 — — — 4,992 5,318 8,754 — 100 — — — — 7,862 10,374 11,197 Total Financial Uses $25,636 $30,668 $26,498 $4,611 $5,919 $8,581 $9,576 $11,387 $14,114 $827 $1,713 $1,722 $—$—$—$40,650 $49,687 $50,915 Surplus (Deficit)$1,919 $813 $172 $242 $59 $—$(82) $6,291 $251 $108 $563 $(1,099) $92 $89 $93 $2,279 $7,815 $(583) Fund Balance Beginning Balance $22,469 $21,754 $17,339 $(290) $(48) $11 $8,043 $7,961 $14,252 $2,653 $2,761 $3,324 $149 $241 $330 $33,024 $32,669 $35,256 Surplus (Deficit) 1,919 813 172 242 59 — (82)6,291 251 108 563 (1,099)92 89 93 2,279 7,815 (583) Use of Reserves (2,634)(5,228)(896)— — — —— (1,899)— — — — — — (2,634)(5,228)(2,795) Ending Balance 21,754 17,339 16,615 (48)11 11 7,961 14,252 12,604 2,761 3,324 2,225 241 330 423 32,669 35,256 31,878 Change in Balance $(715) $(4,415)(724) $242 $59 —$(82) $6,291 (1,648) $108 $563 (1,099) $92 $89 93 $(355) $2,587 (3,378) Change -3.2%-20.3%-4.18%83%122.92%—%-1.0%79.0%-11.6%4.1%20.4%-33.1%61.7%36.9%28.2%-1.1%7.9%-9.6% THREE YEAR CONSOLIDATED AND FUND FINANCIAL SCHEDULE City of Diamond Bar, California 48 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 139 WHAT IS FUND BALANCE? Fund balance reflects the net financial resources of a fund - in other words, assets minus liabilities - in simpler terms, dollars available to spend. If some of the funds’ resources are not available to spend, this would be indicated by “restricting” or “reserving” a portion of fund balance. The Governmental Accounting Standards Board (GASB) Statement Number 54, Fund Balance Reporting and Governmental Fund Type Definitions, is effective for fiscal years beginning after June 15, 2010. The objective of the statement is to improve the usefulness and understandability of governmental fund balance information. The statement provides clearly defined categories of fund balance to make the nature and extent of the constraints placed on a government’s fund balance more transparent. GASB 54 classifications of fund balance are as follows: Nonspendable - The net current financial resources that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Generally, not in spendable form means that an item is not expected to be converted to cash. Examples include inventory, prepaid amounts, long-term amounts of loans and notes receivable and property acquired for resale. Restricted - The portion of fund balance on which constraints have been placed by creditors, grantors, contributors, laws or regulations of other governments, constitutional provisions or enabling legislation. Committed - The portion of fund balance that can only be used for specific purposes pursuant to constraints imposed by formal action of the highest level of decision- making authority i.e. the City Council. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same action it employed to previously commit the amounts. Assigned - The portion of fund balance that is intended to be used for specific purposes, but is neither restricted nor committed. Such intent needs to be established at either the highest level of decision-making i.e. City Council or by an official designated for that purpose i.e. City Manager and/or Finance Director. Unassigned - The portion of fund balance that represents amounts that are not nonspendable, restricted, committed or assigned to specific purposes. The General Fund is the only fund that should report this category of fund balance. The City will strive to maintain an unassigned fund balance of 3 months of the budgeted operational expenditures in the City's General Fund. The purpose of this unassigned balance is to alleviate significant unanticipated budget shortfalls and to ensure the orderly provisions of services to citizens. GASB 54 classification is only required for governmental funds. Therefore, no presentation is included on Internal Service Funds or Agency Funds - those balances are restricted by their individual purposes 100%. FUND BALANCE City of Diamond Bar, California 49 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 140 Resources Uses Fund # Fund Title FB Reserves @ 06/30/19 Revenues Transfers In Total Resources Expenditures Transfers Out FB Reserves @ 06/30/20 Change in FB Reserves Explanation of Change in FB Reserves Greater Than 10% 1 General Fund 17,338,263 24,544,085 1,229,936 43,112,284 24,053,914 2,443,684 16,614,686 (4)%GF Reserves are being used primarily for CIP projects and subsidy of LLAD's 11 Com Organization Support Fund —— 20,000 20,000 20,000 ———% 12 Law Enforcement Reserve Fund 1,013,311 —— 1,013,311 — 100,000 913,311 (10)%Money to be used for as-needed assignments and suppression patrols 15 General Plan Revision Fund 292,653 —— 292,653 268,700 — 23,953 (92)%Money set aside for GP will be expended 18 Technology Reserve Fund 1,500 36,000 — 37,500 —— 37,500 2400 %Money is being collected for the update of the Land Management System 20 OPEB Reserve Fund 258,613 —— 258,613 20,000 88,000 150,613 (42)%Reserves are being invested into OPEB Trust 107 Measure W — 900,000 — 900,000 — 453,000 447,000 —% 108 Road Maintenance & Rehab (RMRA) 1,181,511 952,348 — 2,133,859 — 1,806,811 327,048 (72)%Reserves are being used for CIP projects 109 Measure M Fund 371,042 825,413 — 1,196,455 — 1,152,691 43,764 (88)%Reserves are being used for CIP projects 110 Measure R Fund (6,774)726,266 — 719,492 — 719,492 —(100)%Reserves are being used for CIP projects 111 Gas Tax Fund 72,986 1,498,315 — 1,571,301 — 1,472,821 98,480 35 %The annual allocation is more that expenses this year 112 Prop A - Transit Fund 397,467 1,916,574 — 2,314,041 1,653,427 378,102 282,512 (29)%Reserves are being built up for future projects 113 Prop C - Transit Fund 877,333 974,751 — 1,852,084 448,468 883,031 520,585 (41)%Reserves are being used for CIP projects 114 MAP-21 Fund 363 ——363 ——363 —% 115 Integrated Waste Mgt Fund 1,278,463 653,470 — 1,931,933 589,771 10,000 1,332,162 4 %The annual allocation is more that expenses this year 116 Traffic Mitigation Fund 6,957,013 8,000 — 6,965,013 — 110,000 6,855,013 (1)%Reserves are being used for CIP projects 117 Sewer Mitigation Fund 66,579 2,000 — 68,579 — 16,138 52,441 (21)%Reserves are being used for CIP projects 118 Air Quality Improvement Fd 90,545 74,500 — 165,045 51,000 16,948 97,097 7 %The annual allocation is more that expenses this year 119 SB821 Trails (TDA)— 151,298 — 151,298 — 109,918 41,380 —% 120 MTA Grants Fund — 777,898 — 777,898 — 777,898 ——% 121 Waste Hauler Fund 469 137,000 — 137,469 — 134,469 3000 540 %The annual allocation is more that expenses this year 122 Park Fees (Quimby) Fd 107,663 3,500 — 111,163 — 36,250 74,913 (30)%Reserves are being used for CIP projects 123 Prop A - Safe Neighborhood Pks Fd 41,538 —— 41,538 —— 41,538 —% 124 Park & Facility Development Fd 48,722 1,000 — 49,722 — 25,000 24,722 (49)%Reserves are being used for CIP projects 125 Community Dev Block Grant Fd 44,843 273,907 — 318,750 113,907 160,000 44,843 —% 126 Citizens Option for Public Sfty Fd 245,942 104,500 — 350,442 10,000 118,154 222,288 (10)%Reserves are being used for Law Enforcement purposes 128 CA Law Enforcement Eq Fund 14,534 200 — 14,734 10,000 — 4,734 (67)%We no longer receive this funding source 131 Street Beautification 392,439 2,000 — 394,439 —— 394,439 1 %Reserves are being built up for future projects 132 Measure A Neighborhood Parks Act 46,000 231,000 — 277,000 — 185,000 92,000 100 %Reserves are being built up for future projects 133 CASP (SB1186) Fund 14,165 8,100 — 22,265 —— 22,265 57 %Reserves are being built up for future projects 134 Tres Hermanos —— 70,000 70,000 70,000 ———% 135 PEG Fees Fund 373,302 104,000 — 477,302 68,700 — 408,602 9 %The annual allocation is more that expenses this year 138 Landscape Maint Dist - 38 — 276,330 60,499 336,829 336,829 ———% 139 Landscape Maint Dist - 39 — 294,764 169,068 463,832 463,832 ———% 141 Landscape Maint Dist - 41 — 122,157 199,501 321,658 321,658 ———% 160 Used Oil Grant 16,486 15,800 — 32,286 15,900 — 16,386 (1)% 161 Beverage Recycling Grant 54,016 15,162 — 69,178 37,000 — 32,178 (40)%Reserves are being used for expanded programs FUND BALANCE City of Diamond Bar, California 50 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 141 Resources Uses Fund # Fund Title FB Reserves @ 06/30/18 Revenues Transfers In Total Resources Expenditures Transfers Out FB Reserves @ 06/30/19 Change in FB Reserves Explanation of Change in FB Reserves Greater Than 10% 250 Capital Improvement Project Fd 10,673 678,328 7,903,246 8,592,247 8,581,574 — 10,673 —% 370 Debt Service Fund 199 100 860,706 861,005 860,806 —199 —% 510 Self Insurance Fund 1,000,000 9,000 487,451 1,496,451 496,451 — 1,000,000 —% 520 Vehicle Maint & Replacement Fund 435,333 5,000 — 440,333 226,900 — 213,433 (51)%No transfer in this FY so expenses are funded w/reserves 530 Equipment Maint & Repl Fd 1,682,495 5,500 109,000 1,796,995 848,225 — 948,770 (44)%Reduction in reserves is due to depreciation expense 540 Building Facility & Maint Fund 206,107 7,000 — 213,107 150,000 — 63,107 (69)%No transfer in this FY so expenses are funded w/reserves 620 OPEB Trust Fund 329,760 5,000 88,000 422,760 —— 422,760 28 %Contribution being made from OPEB Reserve Fund Grand Totals 35,255,554 36,340,266 11,197,407 82,793,227 39,717,062 11,197,407 31,878,758 FUND BALANCE City of Diamond Bar, California 51 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 142 City of Diamond Bar, California 52 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 143 All revenues which, by law, do not have to be placed in a separate fund are deposited in the General Fund. All general operations of the City are charged to this fund. All expenditures must be made pursuant to appropriations, which lapse annually and at the end of the fiscal year. Unexpended balances are transferred to the unappropriated reserve. PROPERTY TAXES Secured - Current Year Tax levied on secured property pursuant to the revenue and taxation code. Unsecured - Current Year Tax levied on all personal property not secured by real property held in title by the same owner. Due to the transitory nature of unsecured property, a tax is levied immediately after assessed values are determined. Supplemental Roll Taxes levied when secured property is sold to a new owner. It is calculated as the difference between what the seller paid for property tax and what the new owner is expected to pay prorated from the time of closing escrow until the next property tax bill is prepared by the Assessor. Prior Year Uncollected Taxes paid in the current year, which were due in a prior year. Interest and Penalties Interest and penalties charged for the late payment of property taxes. Consultant HdL & Companies provides annual estimates for Secured and Unsecured Property Taxes. Supplemental and Delinquent Property Taxes are based on the latest 3 year average trend. OTHER TAXES Sales and Use Tax As a result of the Bradley-Burns Local Sales and Use Tax law, 1% of the Sales & Use Tax is to be distributed to the City. Consultant HdL & Companies provides annual estimates. Transient Occupancy Tax These revenues are received on a monthly basis from the hotels in the City. The hotels are required to pay a 10% tax based on the amount of their room rental revenues. Estimate based on historical trends. REVENUE DESCRIPTIONS City of Diamond Bar, California 53 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 144 Franchise Fees Companies are granted special privileges for the continued use of public property, such as city streets. Such companies usually involve elements of monopoly and may require regulation. The Franchise Fees are the amounts required for the continued granting of these privileges. Franchises currently granted within the City are Electric, Gas, Cable TV, Bus Benches and Waste Hauler. Estimate based on franchise agreements with each franchisee. FINES AND FORFEITURES Vehicle Code Fines Amounts derived from traffic citations and fines for violations occurring within the city limits. Court Fines and Forfeitures Fines collected by the county courts for city code violations other than traffic, which are shared with Los Angeles County. Impound Fees Fines collected upon the release of vehicles, which have been impounded and stored by the Sheriff's Department. Miscellaneous Other fines and forfeitures not included above. Estimate based on historical trends and changes to the City and/or County Fee Schedule. LICENSES AND PERMITS Building Fees Building Fees are collected in accordance with the Uniform Building Code. The revenues from these fees are used to cover the cost of providing building inspections to insure compliance with building codes. Estimate based on anticipated building activity and any changes to the City's Fee Schedule. Encroachment Permit Fees These fees are levied to cover costs of inspections for work within the public right- of-way for the construction of new or repair of existing utility facilities and other public improvements such as sidewalks, curb, gutter, asphalt roadway, etc. Estimate based on anticipated building activity and any changes to the City's Fee Schedule. REVENUE DESCRIPTIONS City of Diamond Bar, California 54 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 145 Certified Access Specialist Program (CASP) Fees SB 1186 requires that a $4 additional fee is to be paid by any applicant seeking a local business license when it is initially issued or renewed. From January 1, 2018 through December 31, 2023, the City will retain 90% of the fees collected. The purpose of the fee is to increase disability access and compliance with construction related accessibility. Estimate based on historical business license volume and the State's Fee Schedule. CURRENT SERVICE CHARGES Planning and Engineering Fees These fees are levied to cover costs of plan checks, inspections, etc. which maybe necessary in conjunction with new construction or improvements being made by contractors. Estimate based on anticipated building activity and any changes to the City's Fee Schedule. Recreation Fees These fees are levied to cover the cost of providing recreation programs such as fee classes, Tiny Tot programs, excursions, summer day camp, youth and adult athletics, senior activities and community events. Estimate based on trending program participation and any changes to the City's Fee Schedule. Public, Educational and Governmental (PEG) Fees Fees totaling 1% of gross revenues are remitted to the City by all video service providers with a valid state franchise. These funds may only be used for capital improvements related to the City's operations of its PEG channels. Estimate based on historical trends. INTERGOVERNMENTAL REVENUE Vehicle License Fee (VLF) - Property In-Lieu Tax The Motor Vehicle In-Lieu fee is a tax on the ownership of a vehicle in place of taxing vehicles as personal property. The tax rate used to be 2%, and then the rate was cut by 67.5% which greatly affected the revenue allocated to the City by the State. VLF has now been totally eliminated. To fill the gap created by the cut the State instituted a property tax swap where the City receives additional property tax to offset the loss of VLF. These funds are included in the budget as VLF Property Tax in Lieu revenue. Projection prepared by consultant HdL Companies, LLC. REVENUE DESCRIPTIONS City of Diamond Bar, California 55 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 146 AB2766 - Air Quality Improvement/Pollution Reduction Fees These fees are derived from the imposition of an additional motor vehicle registration fee which shall be used to fund the implementation of air quality management compliance and provisions of the California Clean Air Act of 1988. Estimate based on historical trends. Gas Tax Section 2105 This Section of the Streets and Highways Code provides for the collection and distribution of special gas tax to fund improvements for regional transportation needs. Gas Tax Section 2106 Section 2106(a) of the Streets and Highways Code provides that each city shall receive a fixed monthly apportionment of $400; Section 2106(c) provides for distribution on a per capita basis. Gas Tax Section 2107 This section provides monthly allocations of 1.315 cents per gallon of gasoline, 1.8 cents per gallon of diesel and 2.59 cents per liquefied petroleum gas (LPG) based on population. Gas Tax Section 2107.5 This account represents a fixed amount of revenue received from the state based on population. Highway Users Tax Act (HUTA) This revenue source replaces the Proposition 42 sales tax on gasoline with a franchise tax. It is intended to be revenue neutral to Cities and allow greater flexibility at the State level. Road Maintenance & Rehabilitation Act of 2017 (SB-1) This source of revenue was signed into law in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide. A fuel tax increase began on November 1, 2017. The value-based transportation fee began on January 1, 2018. The price-based excise tax will be reset on July 1, 2019 and the new zero emissions vehicle fee will begin on July 1, 2020. Gas Tax, HUTA and SB-1 estimates are provided by California Local Government Finance Almanac which bases their estimates on State Department of Finance statewide revenue projections. REVENUE DESCRIPTIONS City of Diamond Bar, California 56 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 147 Measure W The Safe Clean Water Act (ACW Program) also known as Measure W was approved by the voters in November 2018. The revenue generated from this measure is intended to maximize the ability of local governments to address local storm water and urban runoff challenges and is to be used for water quality improvements within the City. It is estimated that the City will receive $900,000 annually as part of this program. Measure M Approved by the voters on November 6, 2016, this half-cent sales tax increase will fund projects that will improve local streets, repair potholes and improve traffic flow/ safety. The City received its first allocation of Measure M funds during FY 2017-18. Prop A - Transit Tax The City receives twenty-five percent of the 1/2% Prop A Sales tax (approved by voters in 1980). These funds are distributed by the L.A. County Metropolitan Transportation Authority (MTA), and are distributed to Los Angeles County cities on a proportional population basis. The funds are to be used for the development of transit programs within the guidelines established by the MTA. Prop C - Transit Tax The City receives twenty percent of the 1/2% Prop C sales tax (approved by voters in 1990). These funds are distributed by the L.A. County Metropolitan Transportation Authority (MTA), and are distributed to Los Angeles County cities on a proportional population basis. The funds are to be used the improving, expanding and maintaining public transit services. These expenditures must be consistent with the County's Congestion Management Program. Measure R - Local Return Funds Measure R is funded with 1/2 cent sales tax revenues that LA County voters approved in November 2008 to meet the transportation needs of the County. Fifteen percent of this tax is designated for the Local Return program to be used by cities. These funds are to be used for local transportation projects. Measure M, Prop A, Prop C and Measure R estimates come from L.A. County Metropolitan Transportation Authority (MTA). Prop A - Safe Parks Program Funds transferred to the City as a result of the 1992 and 1996 L.A. County Safe Neighborhood Parks Act. These funds are to be used to improve, preserve and restore parks and to employ at-risk youth. Projects utilizing the California Conservation Corps are funded through the at-risk youth element of this program. This program ended in FY 2017-18. REVENUE DESCRIPTIONS City of Diamond Bar, California 57 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 148 Measure A Neighborhood Parks Act Approved by the voters in November 2016, this new source of revenue in FY 2018-19 provides funds to improve the quality of life throughout Los Angeles County by preserving and protecting parks, safe places to play, community recreation facilities, beaches, rivers, open spaces and water conservation. Measure A funds provide local funding for parks, recreation, trails, cultural facilities, open space and Veteran and youth programs. Annual estimates are received from the Los Angeles County Regional Park and Open Space District. STATE GRANTS State TDA The Transportation Development Act provides this source of funding. Derived from statewide sales tax, and allocated by formula to the County Transportation Commission, allocations are deposited in each regional entity's State Transit Assistance Fund. Estimate based on historical trends. SB821 - Bike and Pedestrian Paths SB821 allows the City to request specifically allocated monies for the purpose of constructing bike and pedestrian paths. Estimate based on historical trends. Habitat Conservation Fund (HFC) Established by the California Wildlife Protection Act of 1990 (Proposition 117), the HCF provides funding to local agencies to protect threatened species, to address wildlife corridors, to create trails and to provide for nature interpretation programs which bring urban residents into park and wildlife areas. Grant awards vary from year to year so this is based on individual grant criteria. COUNTY GRANTS County TDA The Transportation Development Act provides this source of funding. Derived from state sales tax and allocated by formula to the County Local Transportation Fund, allocations are available to operators for the support of public transportation systems. Based on estimates from Los Angeles County. REVENUE DESCRIPTIONS City of Diamond Bar, California 58 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 149 FEDERAL GRANTS Community Development Block Grant (CDBG) The federal government provides funds for metropolitan areas whose population exceeds 50,000. The funds are based upon a federal formula and are to be used only within low and moderate-income census tracts and/or to benefit low and moderate-income persons. Based on estimates received from the Community Development Commission of the County of Los Angeles. Moving Ahead For Progress In The 21st Century (MAP-21) The Federal Government has created a Federal Surface Transportation Program that allocates funds for various improvements to the nation’s streets and roads. This two year legislation has annual allocations funded primarily by the Highway Account. Estimate based on historical trends. Land & Water Conservation Fund (LWCF) LWCF is a Federal program that conserves irreplaceable lands and improves outdoor recreation opportunities. Funds are administered by the State of California and are allocated to local agencies through competitive grants. Grant awards vary from year to year so this is based on individual grant criteria. Recreational Trails Program (RTP) RTP is a Federal program that provides financial assistance to local agencies for the development of recreational trails, trailheads and trailside facilities. Funds are administered by the State of California and are allocated to local agencies through competitive grants. Grant awards vary from year to year so this is based on individual grant criteria. OTHER FINANCING SOURCES Proceeds from Sale of General Fixed Assets This includes proceeds from the sale of fixed assets (used by governmental funds only). Damage to City Property These funds include reimbursement to the City for repairing willful or accidental damage to city property. Generally these are associated with automobile accidents. REVENUE DESCRIPTIONS City of Diamond Bar, California 59 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 150 Cost Reimbursements Reimbursements to the City for various expenditures incurred that are reimbursable i.e. legal expenses. All three of these revenue source estimates are based on historical trends. Street Beautification - Developer Paid Funds received from development projects to be used toward the Diamond Bar Complete Streets improvements as well as other identified capital improvement streetscape or complete streets projects as conditioned by the development projects entitlements. Estimate based on anticipated development projects and the associated fees. OPERATING TRANSFERS IN Operating Transfers In Includes monies transferred from one fund to another. Transfers are income to recipient fund. USE OF MONEY AND PROPERTY Interest Earnings Investments Inactive City funds are pooled and invested on a continuing basis in certain types of investments that are state approved such as time certificate of deposits, money market accounts, Local Agency Investment Fund, and Federal Agency notes. The City's investment software produces a projection based on the holdings in the portfolio. REVENUE DESCRIPTIONS City of Diamond Bar, California 60 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 151 Property Taxes 5,577,160 20.9% Other Taxes 8,075,000 30.3% Subventions - State 6,519,465 24.4% Fines & Forfeitures 430,000 1.6% Current Service Charges 2,311,810 8.7% Use of Money and Property 1,503,500 5.6% Cost Reimbursements 127,150 0.5% Transfers In-Other Funds: 1,229,936 4.6%Fund Balance Reserves 896,527 3.4% Total Revenue: $26,670,548 FY 2019/20 GENERAL FUND REVENUE City of Diamond Bar, California 61 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 152 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed Property Taxes 30010 Current Secured $ 4,824,840 $ 5,043,469 $ 5,043,000 $ 5,250,560 30020 Current Unsecured 187,673 188,000 188,000 188,000 30050 Supplemental Roll 138,830 124,700 125,000 132,250 30100 Prior Year Property Tax (8,804) (10,000) (10,000) (10,000) 30200 Misc. Property Taxes ———— 30250 Interest Penalties & Delinquencies 15,481 20,000 15,000 16,350 Total Property Taxes $ 5,158,020 $ 5,366,169 $ 5,361,000 $ 5,577,160 Other Taxes 31010 Sales Tax $ 4,999,873 $ 5,098,000 $ 5,169,000 $ 5,020,000 31200 Transient Occupancy Tax 1,019,915 1,250,000 1,250,000 1,400,000 31210 Franchise Tax 1,419,605 1,285,000 1,317,888 1,380,000 31250 Property Transfer Tax 404,452 275,000 275,000 275,000 Total Other Taxes $ 7,843,845 $ 7,908,000 $ 8,011,888 $ 8,075,000 Subventions - State 31340 Homeowners Exemption $ 29,610 $ 30,500 $ 30,500 $ 30,000 31700 Motor Vehicle in Lieu (VLF)30,039 —27,581 — 31701 VLF - Property Tax in Lieu 5,981,138 6,257,924 6,257,924 6,489,465 Total Subventions - State $ 6,040,786 $ 6,288,424 $ 6,316,005 $ 6,519,465 From Other Agencies 31900 Intergovernmental Revenue - Other Cities $—$ 840,000 $888,500 $— Total From Other Agencies $— $ 840,000 $ 888,500 $— Fines & Forfeitures 32150 Vehicle Code Fines $ 165,501 $ 185,000 $ 155,000 $ 160,000 32200 General Fines 27,569 15,000 10,000 15,000 32210 Municipal Code Fines 5,044 5,000 25,000 30,000 32230 Parking Fines 243,226 185,000 215,000 215,000 32250 Vehicle Impound Fees 6,400 7,500 10,000 10,000 32270 False Alarm Fees 11,875 10,000 —— Total Fines & Forfeitures $ 459,614 $ 407,500 $ 415,000 $ 430,000 Current Service Charges Building Fees: 34110 Building Permits $ 555,354 $ 476,219 $ 476,219 $ 369,900 34120 Plumbing Permits 147,278 117,873 117,873 48,785 34130 Electrical Permits 69,767 67,752 67,527 53,425 34140 Mechanical Permits 47,113 56,961 56,961 28,225 34200 Permit Issuance Fee 86,745 91,378 91,378 72,065 34250 Inspection Fees 339 8,653 8,653 6,820 34300 Plan Check Fees 528,552 498,939 498,939 470,920 34310 Plan Retention Fee 41,169 55,194 55,194 24,070 34350 SMIP Fees 6,236 5,273 5,273 4,155 34355 Building Standards Admin Fee 2,114 2,087 2,087 1,645 34415 Waste Reduction Fees 2,604 900 900 500 Sub-Total $ 1,487,272 $ 1,381,229 $ 1,381,004 $ 1,080,510 GENERAL FUND REVENUE OVERVIEW City of Diamond Bar, California 62 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 153 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed Planning Fees: 34430 Current Planning Fees $ 136,265 $ 192,000 $ 125,000 $ 125,000 34435 Planning Administration Fees ———— 34550 Developer Fees ———— 34554 Willow Heights Park Improvement Fees ———— 34556 South Pointe Developer Fees 500,000 110,000 110,000 — 34560 Business License Fees 27,067 20,000 24,000 27,000 34561 Business License Late Fees 4,092 2,500 2,500 2,500 Sub-Total $ 667,424 $ 324,500 $ 261,500 $ 154,500 Engineering Fees: 34610 Engineering - Plan Check Fees $ 23,875 $ 37,000 $ 37,000 $ 37,000 34620 Engineering - Address Change Fee 3,839 2,000 2,000 2,000 34630 Engineering - Encroachment Fees 90,856 90,000 90,000 95,000 34640 Engineering - Inspections Fees 18,403 25,000 25,000 25,000 34650 Soils/Traffic/Misc Engineering Fees 29,491 35,000 35,000 35,000 34660 Traffic Mitigation - Engineering 11,919 ——— 34662 Waste Hauler Fees 190,000 195,000 195,000 203,000 34665 Industrial Waste Fees 35,612 40,000 35,000 35,000 Sub-Total $ 403,994 $ 424,000 $ 419,000 $ 432,000 Recreation Fees: 34720 Community Activities $ 38,101 $ 64,550 $ 65,550 $ 29,600 34730 Senior Activities 39,715 40,350 40,350 41,500 34740 Athletics 47,789 63,750 63,750 58,200 34760 Fee Programs 241,581 260,715 258,840 259,500 34780 Contract Classes 245,294 255,000 255,000 256,000 34800 Special Event Fees 16,740 ——— Sub-Total $ 629,220 $ 684,365 $ 683,490 $ 644,800 Total Current Service Charges $ 3,187,911 $ 2,814,094 $ 2,744,994 $ 2,311,810 Use of Money and Property Misc Use of Money & Property 36600 Returned Check Charges $ 485 $ 460 $ 150 $ 150 36630 Sale of Fixed Assets ———— 36637 Film Permits 3,153 3,000 3,000 3,000 36660 Donations 1,650 500 1,100 500 36900 Miscellaneous Revenue 27,526 10,000 10,000 10,000 Sub-Total $ 32,814 $ 13,960 $ 14,250 $ 13,650 Investments 36100 Investment Earnings $ 398,794 $ 420,900 $ 420,900 $ 485,750 36110 Unrealized Gain/(Loss) on Invests (472,353)——— 36120 Gain/Loss On Sale of Investments 4,139 7,500 —— Sub-Total $ (69,420) $ 428,400 $ 420,900 $ 485,750 GENERAL FUND REVENUE OVERVIEW City of Diamond Bar, California 63 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 154 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed Rents & Concessions 36610 Rents & Concessions $ 154,144 $ 150,000 $ 160,000 $ 160,000 36615 Diamond Bar Center Rental 788,339 725,000 650,000 725,000 36618 Facility Security 38,566 39,000 52,500 52,500 36620 Heritage Park Building Rental 19,165 25,000 20,000 20,000 36622 Pantera Park Building Rental ———5,000 36625 Parks & Fields Rental 19,511 15,000 15,000 10,000 36627 Concert Share Revenue ———24,600 Sub-Total $ 1,019,724 $ 954,000 $ 897,500 $ 997,100 Taxable Sales 36640 City Store Sales $45 $— $— $— 36650 Sale of Printed Material 963 2,500 1,000 1,000 Sub-Total $ 1,008 $ 2,500 $ 1,000 $ 1,000 Property Damage 36800 Property Damage - Public Works $ 20,936 $ 24,000 $ 4,500 $ 5,000 36810 Property Damage - Parks 32 2,000 100 1,000 Sub-Total $ 20,968 $ 26,000 $ 4,600 $ 6,000 Total Use of Money and Property $ 1,005,094 $ 1,424,860 $ 1,338,250 $ 1,503,500 Cost Reimbursements 36950 Cost Reimbursements $ 126,884 $ 215,777 $ 215,777 $ 127,150 Total Cost Reimbursements $ 126,884 $ 215,777 $ 215,777 $ 127,150 Transfers In-Other Funds: 39012 Transfer In - Law Enforcement Fund $— $ 100,000 $ 35,000 $ 100,000 39111 Transfer In - Gas Tax Fund 939,088 757,122 757,122 1,001,782 39115 Transfer In - Integrated Waste Mgmt. Fund 30,000 10,000 10,000 10,000 39123 Transfer In - Prop A Safe Parks Fund 35,000 50,000 50,000 — 39126 Transfer In - COPS Fund 95,180 110,226 110,226 118,154 Total Transfers In-Other Funds $ 1,099,268 $ 1,027,348 $ 962,348 $ 1,229,936 Fund Balance Reserves Use of Fund Balance Reserves $ 2,633,643 $ 5,748,010 $ 5,227,685 $ 896,527 GENERAL FUND TOTAL $ 27,555,065 $ 32,040,182 $ 31,481,447 $ 26,670,548 GENERAL FUND REVENUE OVERVIEW City of Diamond Bar, California 64 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 155 City of Diamond Bar, California 65 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 156 By Department City Administration 1,996,788 7.5% Administration & Support 4,180,639 15.8% Public Safety 7,694,901 29.0% Community Development 1,733,149 6.5% Parks & Recreation 3,428,564 12.9% Public Works 5,019,874 18.9% Transfers Out 2,443,684 9.2% Total Appropriations: $26,497,598 FY 2019/20 GENERAL FUND APPROPRIATIONS City of Diamond Bar, California 66 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 157 By Category Personnel Services 8,469,095 32.0% Supplies 444,000 1.7% Operating Expenditures 2,655,170 10.0% Professional Services 1,132,745 4.3% Contract Services 11,278,404 42.6% Capital Outlay 74,500 0.3% Transfers 2,443,684 9.2% Total Appropriations: $26,497,598 FY 2019/20 GENERAL FUND APPROPRIATIONS City of Diamond Bar, California 67 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 158 Personnel Operating Professional Contract Capital Department Services Supplies Expenditures Services Services Outlay Transfers Total Percentage Community Administration City Council $142,432 $250 $45,350 $1,200 $—$—$—$189,232 0.71 % City Attorney ——— 210,000 ——— 210,000 0.79 % City Manager/Clerk 1,201,681 31,000 188,375 176,500 ——— 1,597,556 6.03 % Finance 631,271 3,000 42,450 165,095 ——— 841,816 3.18 % Human Resources 398,565 3,000 45,705 2,000 ——— 449,270 1.70 % Health & Safety Program — 7,300 4,500 8,000 ——— 19,800 0.07 % Information Systems 622,140 33,000 486,400 84,300 31,000 —— 1,256,840 4.74 % Civic Center 139,076 44,000 459,926 2,500 — 2,000 — 647,502 2.44 % Public Information 391,197 34,250 173,475 88,650 4,700 —— 692,272 2.61 % Economic Development 144,889 — 11,250 105,000 12,000 —— 273,139 1.03 % Law Enforcement — 6,000 16,000 — 7,387,850 —— 7,409,850 27.96 % Community Volunteer Patrol — 1,000 5,000 ———— 6,000 0.02 % Fire ———— 7,500 5,000 — 12,500 0.05 % Animal Control ———— 196,501 —— 196,501 0.74 % Emergency Preparedness — 20,000 25,050 25,000 ——— 70,050 0.26 % Transfers Out —————— 1,547,157 1,547,157 5.84 % Use of General Fund Reserves —————— 896,527 896,527 3.38 % Community Development Planning 695,979 2,400 13,200 10,000 ——— 721,579 2.72 % Building and Safety 162,257 2,500 2,000 — 537,000 —— 703,757 2.66 % Neighborhood Improvement 251,263 1,200 5,050 — 50,300 —— 307,813 1.16 % Diamond Bar Center 873,600 36,000 283,435 19,500 205,090 22,500 — 1,440,125 5.43 % Recreation Services 1,363,079 107,400 159,510 7,500 350,950 —— 1,988,439 7.50 % Public Works - Admin 437,290 5,000 29,240 227,500 30,000 —— 729,030 2.75 % Engineering 226,063 — 4,250 — 701,950 —— 932,263 3.52 % Road Maintenance 405,328 61,000 100,000 — 1,000,000 —— 1,566,328 5.91 % Parks & Facilities Maintenance 382,986 45,700 555,004 — 431,678 45,000 — 1,460,368 5.51 % Landscape Maintenance ———— 331,885 —— 331,885 1.25 % GENERAL FUND TOTAL $8,469,095 $444,000 $2,655,170 $1,132,745 $11,278,404 $74,500 $2,443,684 $26,497,598 100.00% Percentage of Total 31.96%1.68%10.02%4.27%42.56%0.28%9.22%100.00% FY 2019/20 GENERAL FUND APPROPRIATIONS City of Diamond Bar, California 68 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 159 CITY ADMINISTRATION City of Diamond Bar, California 69 FY 2019/20 Proposed Budget ESTIMATED EXPENDITURES SUMMARY Organization #: 001-4010 through 001-4030 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES $ 1,111,496 $ 1,203,084 $ 1,204,226 $ 1,344,113 SUPPLIES 22,059 31,250 31,250 31,250 OPERATING EXPENDITURES 209,157 474,915 365,465 233,725 PROFESSIONAL SERVICES 961,521 927,991 929,191 387,700 DEPARTMENT TOTAL $ 2,304,233 $ 3,842,273 $ 3,735,165 $ 1,996,788 DEPARTMENT INCLUDES: 4010 City Council $ 189,232 4020 City Attorney 210,000 4020 City Manager/City Clerk's Office 1,597,556 Total Department Expenditures $ 1,996,788 City Council 189,232 9.5% City Attorney 210,000 10.5% City Manager/City Clerk's Office 1,597,556 80.0% 8.1.b Packet Pg. 160 DIVISION NO. 4010 The City Council is the legislative and policy-making body for the City of Diamond Bar. Five Council Members are elected at-large for four-year, overlapping terms of office. The Council annually elects one of its members to serve as Mayor. The Mayor presides over all Council meetings and is the ceremonial head of the City for official functions. As Diamond Bar's elected representatives, the City Council sets policy and establishes quality of municipal services for the community by determining service levels and revenue obligations through the adoption of an annual budget, authorizing City contracts and expenditures, and adopting necessary regulatory measures. Council Members represent the City on various intergovernmental organizations to achieve governmental cooperation and advocate for programs that are consistent with the needs of the community. CITY COUNCIL City of Diamond Bar, California 70 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 161 DEPARTMENT: City Administration DIVISION:City Council ORGANIZATION #:001-4010 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $44,910 $44,760 $44,760 $44,760 40070 City Paid Benefits 3,528 5,684 5,684 4,101 40080 Classic Member Retirement 5,731 2,828 2,828 3,162 40081 Classic Member - UAL Pmt —1,003 1,003 2,189 40082 PEPRA Member Retirement 49 2,167 2,167 2,024 40083 Worker's Comp. Expense —358 —— 40085 Medicare 3,253 1,327 1,327 695 40087 Social Security 62 —1,500 1,500 40090 Benefit Allotment 77,904 81,000 81,000 84,000 TOTAL PERSONNEL $135,436 $139,127 $140,269 $142,432 SUPPLIES 41200 Operating Supplies $143 $250 $250 $250 TOTAL SUPPLIES $143 $250 $250 $250 OPERATING EXPENDITURES 42112 Photography $50 $1,000 $500 $500 42125 Telephone 2,595 2,700 2,700 2,700 42315 Membership & Dues —500 500 500 42325 Meetings 1,046 1,000 1,000 1,000 42330 Travel-Conferences 12,927 22,650 22,650 22,650 42335 Travel-Mileage & Auto Allow 17,952 18,000 18,000 18,000 TOTAL OPERATING EXP $34,570 $45,850 $45,350 $45,350 PROFESSIONAL SERVICES 44000 Professional Services $1,000 $—$1,200 $1,200 TOTAL PROFESSIONAL SERVICES $1,000 $—$1,200 $1,200 DIVISION TOTAL $171,149 $185,227 $187,069 $189,232 CITY COUNCIL City of Diamond Bar, California 71 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 162 DIVISION NO. 4020 The City Attorney serves as the City's legal counsel, reviews resolutions, ordinances and agreements, and advises the City Council and staff on all legal matters relating to the operation of the municipal government. This service is provided through a contract with the law offices of Woodruff, Spradlin & Smart, APC. In addition to the general legal services provided by Woodruff, Spradlin & Smart, the City periodically has the need for legal services related to code enforcement prosecution which is also provided for within this Division. The City may also enlist the services of additional legal experts as needed to address personnel issues and to assist with other matters important to the community. CITY ATTORNEY City of Diamond Bar, California 72 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 163 DEPARTMENT: City Administration DIVISION:City Attorney ORGANIZATION #:001-4020 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PROFESSIONAL SERVICES 44020 Prof Svcs - General Legal $167,784 $155,000 $155,000 $170,000 44021 Prof Svcs - Special Legal 557,037 546,491 546,491 — 44023 Prof Svcs - Sp Lgl Code Enf 35,444 40,000 40,000 40,000 TOTAL PROFESSIONAL SVCS $760,265 $741,491 $741,491 $210,000 DIVISION TOTAL $760,265 $741,491 $741,491 $210,000 CITY ATTORNEY City of Diamond Bar, California 73 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 164 DIVISION NO. 4030 The City Manager/City Clerk's Office budget provides administrative direction to all operating divisions in compliance with the City's Municipal Code. This division is responsible for the execution of Council policy and the enforcement of all laws and ordinances. The City Manager, in concert with the City Council, establishes policy, provides leadership and implements efficient and effective services. The City Manager is the director of all City personnel and establishes and maintains appropriate controls to ensure that all operating departments adhere to Council and legally mandated policies and regulations. Additionally, the City Manager is responsible for the preparation and administration of the annual budget. The City Clerk has the statutory duty to record the official minutes of all City Council meetings. The division maintains original resolutions and ordinances, is responsible for the management of all City records, public hearing notices and for the maintenance of the municipal code. This position also acts as the chief election officer for municipal elections. Administrative and clerical support to the Council Members is also provided through the City Manager/City Clerk’s office. CITY MANAGER / CITY CLERK City of Diamond Bar, California 74 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 165 DEPARTMENT: City Administration DIVISION: City Manager/ Clerk ORGANIZATION #:001-4030 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $ 699,572 $ 730,223 $ 730,223 $ 808,376 40020 Over-Time Wages 323 500 500 500 40030 Part Time Wages 20,957 36,875 36,875 36,666 40070 City Paid Benefits 6,478 7,800 7,800 7,272 40080 Classic Member Retirement 130,074 111,670 111,670 127,924 40081 Classic Member - UAL Pmt — 39,594 39,594 82,641 40083 Worker's Comp. Expense 6,487 12,310 12,310 11,000 40084 Short/Long Term Disability 3,428 4,292 4,292 4,668 40085 Medicare 12,459 12,168 12,168 12,313 40087 Social Security 27 2,286 2,286 575 40090 Benefit Allotment 96,256 106,239 106,239 109,746 TOTAL PERSONNEL $ 976,060 $ 1,063,957 $ 1,063,957 $ 1,201,681 SUPPLIES 41200 Operating Supplies $ 18,559 $ 21,500 $ 21,500 $ 21,500 41300 Small Tools & Equipment 1,660 2,000 2,000 2,000 41400 Promotional Supplies 1,697 7,500 7,500 7,500 TOTAL SUPPLIES $ 21,915 $ 31,000 $ 31,000 $ 31,000 OPERATING EXPENDITURES 42110 Printing $ 5,566 $ 8,000 $ 8,000 $ 8,000 42113 Engraving Services 304 2,500 2,500 2,000 42115 Advertising 5,558 15,000 15,000 10,000 42120 Postage 17,620 25,000 25,000 25,000 42124 Technology 4,200 4,200 4,200 4,200 42125 Telephone 1,335 1,100 1,100 1,100 42130 Rental/Lease of Equipment 46 750 50 50 42140 Rental/Lease of Real Prop 53,159 54,000 54,000 56,000 42200 Equipment Maintenance 2,513 2,800 2,800 500 42315 Membership & Dues 38,122 44,575 44,575 44,835 42320 Publications 10,453 9,750 9,750 1,800 42325 Meetings 11,497 7,000 7,000 7,000 42330 Travel-Conferences 11,345 12,700 12,700 15,200 42335 Travel-Mileage & Auto Allow 11,015 6,440 5,440 4,940 42340 Education & Training 1,662 1,500 500 1,500 42390 Elections 191 233,750 127,500 6,250 TOTAL OPERATING EXP $ 174,587 $ 429,065 $ 320,115 $ 188,375 PROFESSIONAL SERVICES 44000 Professional Services $ 200,256 $ 186,500 $ 186,500 $ 176,500 TOTAL PROFESSIONAL SVCS $ 200,256 $ 186,500 $ 186,500 $ 176,500 MISCELLANEOUS EXPENDITURES 47230 Cont to other Govts $— $ 1,205,033 $ 1,205,033 $— Total Contract Services $— $ 1,205,033 $ 1,205,033 $— DIVISION TOTAL $ 1,372,818 $ 2,915,555 $ 2,806,605 $ 1,597,556 CITY MANAGER / CITY CLERK City of Diamond Bar, California 75 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 166 ESTIMATED EXPENDITURES SUMMARY Organization #: 001-4050 through 001-4096 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES $ 1,938,858 $ 2,174,766 $ 2,174,955 $ 2,327,138 SUPPLIES 109,174 133,250 127,050 124,550 OPERATING EXPENDITURES 1,037,117 1,201,600 1,155,350 1,223,706 PROFESSIONAL SERVICES 529,946 511,414 506,984 455,545 CONTRACT SERVICES 45,764 62,274 58,024 47,700 CAPITAL OUTLAY 21,557 30,100 30,100 2,000 DEPARTMENT TOTAL $ 3,682,416 $ 4,113,404 $ 4,052,463 $ 4,180,639 DEPARTMENT INCLUDES: 4050 Finance $ 841,816 4060 Human Resources & Risk Management 449,270 4065 Health & Safety Program 19,800 4070 Information Systems 1,256,840 4093 Civic Center 647,502 4095 Public Information 692,272 4096 Economic Development 273,139 Total Department Expenditures $ 4,180,639 Finance 841,816 20.1% Human Resources 449,270 10.7%Health & Safety Program 19,800 0.5% Information Systems 1,256,840 30.1% Civic Center 647,502 15.5% Public Information 692,272 16.6% Economic Development 273,139 6.5% ADMINISTRATION & SUPPORT City of Diamond Bar, California 76 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 167 DIVISION NO. 4050 The Finance Division administers the financial affairs of the City of Diamond Bar. The department manages the City's revenues, expenditures, budget, investments, purchasing, accounting and transit activities. The Finance Division processes all financial transactions of the City. Specific activities include accounts payable, cash receipts, payroll, fixed assets, banking services, issuance of Metrolink train and Foothill Transit bus passes, budget preparation, audits, financial reporting, issuance and management of City debt and financial administration of grants. The Finance Division is also responsible for the safety, liquidity and maximization of the yields of the City's financial resources. FINANCE City of Diamond Bar, California 77 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 168 DEPARTMENT: Administration Support DIVISION:Finance ORGANIZATION #:001-4050 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $419,369 $415,056 $415,000 $424,430 40020 Over-Time Wages 1,196 2,000 3,000 6,000 40070 City Paid Benefits 4,984 5,142 5,142 4,898 40080 Classic Member Retirement 79,735 64,716 64,716 70,563 40081 Classic Member - UAL Pmt — 22,946 22,940 45,558 40083 Worker's Comp. Expense 3,285 3,278 3,278 3,375 40084 Short/Long Term Disability 2,246 2,499 2,499 2,573 40085 Medicare 6,670 6,602 6,602 6,197 40090 Benefit Allotment 66,719 64,994 64,994 67,677 TOTAL PERSONNEL $584,205 $587,233 $588,171 $631,271 SUPPLIES 41200 Operating Supplies $1,819 $2,000 $2,000 $2,000 41300 Small Tools & Equipment —1,000 1,000 1,000 TOTAL SUPPLIES $1,819 $3,000 $3,000 $3,000 OPERATING EXPENDITURES 42110 Printing $5,508 $5,250 $5,250 $6,000 42124 Technology 1,200 1,200 1,200 1,200 42128 Banking Charges 14,107 18,600 18,600 19,000 42200 Equipment Maintenance —1,000 1,000 1,000 42315 Membership & Dues 1,030 1,250 1,250 1,250 42320 Publications —500 500 500 42325 Meetings 300 500 250 500 42330 Travel-Conferences 1,573 4,200 3,500 6,700 42335 Travel-Mileage & Auto Allow 3,248 3,500 3,500 3,500 42340 Education & Training 2,734 2,800 2,800 2,800 TOTAL OPERATING EXP $29,700 $38,800 $37,850 $42,450 PROFESSIONAL SERVICES 44000 Professional Services $77,420 $79,145 $81,765 $84,445 44010 Prof Svcs-Acctg & Auditing 77,509 77,250 72,700 80,650 TOTAL PROFESSIONAL SVCS $154,929 $156,395 $154,465 $165,095 DIVISION TOTAL $770,653 $785,428 $783,486 $841,816 FINANCE City of Diamond Bar, California 78 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 169 DIVISION NO. 4060 The Human Resources and Risk Management Division provides for the management of personnel services and risk management. Primary functions include the development, modification and management of all employee recruitment, classifications, compensation, education/training, employee relations, employee safety, worker’s compensation and general liability claims. The Human Resources and Risk Management staff also act in an advisory capacity to the City Executive team on administrative matters that impact the workforce. HUMAN RESOURCES & RISK MANAGEMENT City of Diamond Bar, California 79 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 170 DEPARTMENT: Administration Support DIVISION: Human Resources & Risk Management ORGANIZATION #:001-4060 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $194,865 $276,577 $276,577 $283,799 40030 Part-Time Salaries 31 ——— 40070 City Paid Benefits 1,983 2,574 2,574 1,951 40080 Classic Member Retirement 40,835 43,396 43,396 46,111 40081 Classic Member - UAL Pmt — 15,387 15,387 26,378 40083 Worker's Comp. Expense 1,548 1,618 1,618 1,658 40084 Short/Long Term Disability 1,156 1,234 1,234 1,264 40085 Medicare 2,958 4,179 4,179 4,164 40090 Benefit Allotment 30,840 32,040 32,040 33,240 40093 Benefits Administration 4,287 ——— TOTAL PERSONNEL $278,504 $377,005 $377,005 $398,565 SUPPLIES 41200 Operating Supplies $786 $1,500 $1,000 $1,500 41400 Promotional Supplies 1,616 1,500 1,500 1,500 TOTAL SUPPLIES $2,402 $3,000 $2,500 $3,000 OPERATING EXPENDITURES 42110 Printing $33 $1,500 $500 $500 42115 Advertising 987 1,000 1,000 2,000 42124 Technology 1,200 1,200 1,200 1,200 42315 Membership & Dues 4,523 4,855 4,855 5,205 42320 Publications 143 600 500 600 42325 Meetings 2,384 2,500 2,000 2,500 42330 Travel-Conferences 227 2,500 550 2,500 42335 Travel-Mileage/Auto Allow 1,481 1,740 1,740 — 42340 Education & Training 17,793 15,000 16,000 15,000 42341 Employee Tuition Reimb 5,405 3,500 4,100 3,500 42345 Pre-Employment Screening 11,342 8,000 8,000 8,000 42346 Misc Employee Benefits 1,337 1,500 1,500 1,500 42347 Employee Recognition Prgm.1,054 3,250 3,250 3,200 TOTAL OPERATING EXP $47,909 $47,145 $45,195 $45,705 PROFESSIONAL SERVICES 44000 Professional Services $133 $2,000 $2,000 $2,000 TOTAL PROFESSIONAL SVCS $133 $2,000 $2,000 $2,000 DIVISION TOTAL $328,948 $429,150 $426,700 $449,270 HUMAN RESOURCES & RISK MANAGEMENT City of Diamond Bar, California 80 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 171 DIVISION NO. 4065 The goal of the Health and Safety Program is to integrate wellness elements into all work practices and conditions. In order to promote employee safety and reduce the number of workplace injuries or illness, a Safety Committee was established as part of the Injury Illness Prevention Program (IIPP). The Human Resources Manager is the designated Safety Officer to oversee and implement the IIPP and the designated departmental Safety Committee members are responsible for conducting worksite inspections, employee training and recommending policy as well as solutions to correct safety deficiencies in the workplace. It is the mission of the Employee Relations Committee and the Wellness Initiative to promote a healthy work environment for the employees of the City of Diamond Bar by creating and supporting a calendar of educational, social, and community building events to better connect employees within the civic community and the wider community, to nurture positive relations between all employees, and to stimulate continuous growth in the sense of well-being of the City of Diamond Bar work force. HEALTH & SAFETY PROGRAM City of Diamond Bar, California 81 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 172 DEPARTMENT: Administration Support DIVISION:HR - Safety Prog ORGANIZATION #:001-4065 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed SUPPLIES 41200 Operating Supplies $1,089 $1,000 $1,000 $1,000 41300 Small Tools & Equipment 1,409 10,000 10,000 4,300 41400 Promotional Supplies 1,867 2,000 1,000 2,000 TOTAL SUPPLIES $4,365 $13,000 $12,000 $7,300 OPERATING EXPENDITURES 42315 Membership & Dues $300 $—$—$— 42320 Publications ———500 42325 Meetings 117 1,500 1,500 1,000 42340 Education & Training 2,174 2,500 2,500 2,500 42347 Employee Recognition Program 548 500 500 500 TOTAL OPERATING EXP $3,139 $4,500 $4,500 $4,500 PROFESSIONAL SERVICES 44000 Professional Services $—$9,000 $6,000 $8,000 TOTAL PROFESSIONAL SVCS $—$9,000 $6,000 $8,000 DIVISION TOTAL $7,503 $26,500 $22,500 $19,800 HEALTH & SAFETY PROGRAM City of Diamond Bar, California 82 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 173 DIVISION NO. 4070 The Information Systems Division is responsible for the management and enhancement of the City’s information technology including the evaluation, procurement, implementation, and maintenance of computer/network systems and software; including ongoing technical and software support/training to all the departments of the City. The service areas consist of: telephone & mobile systems, network services, application services, desktop services, digital access controls/cameras, and e-government. INFORMATION SYSTEMS City of Diamond Bar, California 83 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 174 DEPARTMENT: Administration Support DIVISION:Info Systems ORGANIZATION #:001-4070 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $ 385,246 $ 417,868 $ 417,868 $ 433,452 40020 Over-Time Wages 1,437 1,500 1,500 1,500 40070 City Paid Benefits 3,551 4,777 4,777 4,067 40080 Classic Member Retirement 67,769 55,860 55,860 61,473 40081 Classic Member - UAL Pmt — 19,806 19,806 39,947 40082 PEPRA Member Retirement 72 4,012 4,012 3,765 40083 Worker's Comp. Expense 5,779 4,848 4,848 6,380 40084 Short/Long Term Disability 2,061 2,461 2,461 2,570 40085 Medicare 5,376 6,067 6,067 6,319 40090 Benefit Allotment 57,602 60,417 60,417 62,667 TOTAL PERSONNEL $ 528,894 $ 577,616 $ 577,616 $ 622,140 SUPPLIES 41200 Operating Supplies $ 30,145 $ 32,500 $ 30,500 $ 31,000 41300 Small Tools & Equipment 1,834 2,500 1,300 2,000 TOTAL SUPPLIES $ 31,979 $ 35,000 $ 31,800 $ 33,000 OPERATING EXPENDITURES 42100 Photocopying $ 12,976 $ 16,000 $ 13,000 $ 16,000 42124 Technology 2,400 2,400 2,400 2,400 42125 Telephone 51,635 64,800 64,800 57,400 42200 Equipment Maintenance —3,500 4,250 3,500 42205 Computer Maintenance 329,204 366,506 351,806 394,200 42315 Membership & Dues 1,695 2,250 2,100 2,200 42320 Publications 216 200 200 200 42325 Meetings 40 1,000 600 600 42330 Travel-Conferences 3,496 4,200 4,200 4,200 42335 Travel-Mileage & Auto Allow 3,894 3,200 3,200 3,200 42340 Education & Training 2,322 3,000 2,500 2,500 TOTAL OPERATING EXP $ 407,877 $ 467,056 $ 449,056 $ 486,400 PROFESSIONAL SERVICES 44000 Professional Services $ 64,359 $ 52,000 $ 52,000 $ 51,000 44030 Prof Svcs-Data Processing 75,708 68,293 68,293 33,300 TOTAL PROFESSIONAL SVCS $ 140,067 $ 120,293 $ 120,293 $ 84,300 CONTRACT SERVICES 45000 Contract Services $ 17,001 $ 32,000 $ 32,000 $ 31,000 TOTAL CONTRACT SERVICES $ 17,001 $ 32,000 $ 32,000 $ 31,000 CAPITAL OUTLAY 46230 Computer Equip-Hardware $ 3,025 $ 20,300 $ 20,300 $— 46235 Computer Equip-Software 18,532 4,300 4,300 — TOTAL CAPITAL OUTLAY $ 21,557 $ 24,600 $ 24,600 $— DIVISION TOTAL $ 1,147,375 $ 1,256,565 $ 1,235,365 $ 1,256,840 INFORMATION SYSTEMS City of Diamond Bar, California 84 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 175 DIVISION NO. 4093 The Civic Center Division has been established to account for expenditures related to the operation of the City Hall building. This includes the budget for the utilities, maintenance and salaries related to both City Hall and the County Library. CIVIC CENTER City of Diamond Bar, California 85 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 176 DEPARTMENT: Administration Support DIVISION:Civic Center ORGANIZATION #:001-4093 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $ 57,959 $ 84,299 $ 84,299 $ 93,112 40020 Over-Time Wages 1,830 2,500 2,500 2,500 40070 City Paid Benefits 742 1,216 1,216 1,015 40080 Classic Member Retirement 9,634 9,668 9,668 11,499 40081 Classic Member - UAL Pmt —3,428 3,425 7,522 40082 PEPRA Member Retirement 27 1,609 1,609 1,572 40083 Worker's Comp. Expense 1,737 2,340 2,340 2,583 40084 Short/Long Term Disability 352 495 495 556 40085 Medicare 870 1,274 1,274 1,397 40090 Benefit Allotment 12,336 16,020 16,020 17,320 TOTAL PERSONNEL $ 85,487 $ 122,849 $ 122,846 $ 139,076 SUPPLIES 41200 Operating Supplies $ 27,065 $ 42,500 $ 42,500 $ 42,500 41300 Small Tools & Equipment 1,249 1,500 1,500 1,500 TOTAL SUPPLIES $ 28,314 $ 44,000 $ 44,000 $ 44,000 OPERATING EXPENDITURES 42125 Telephone $ 1,481 $— $— $— 42126 Utilities 158,923 212,700 212,700 223,335 42130 Rental/Lease of Equipment 2,145 2,000 2,000 2,000 42210 Maint. of Grounds/Buildings 192,491 202,834 202,834 213,591 42315 Membership & Dues $— $ 21,000 $ 21,000 $ 21,000 TOTAL OPERATING EXP $ 355,041 $ 438,534 $ 438,534 $ 459,926 PROFESSIONAL SERVICES 44000 Professional Services $— $ 2,500 $ 2,500 $ 2,500 TOTAL PROFESSIONAL SVCS $— $ 2,500 $ 2,500 $ 2,500 CAPITAL OUTLAY 46220 Furniture/Fixtures $— $ 5,500 $ 5,500 $ 2,000 TOTAL CAPITAL OUTLAY $— $ 5,500 $ 5,500 $ 2,000 DIVISION TOTAL $ 468,841 $ 613,383 $ 613,380 $ 647,502 CIVIC CENTER City of Diamond Bar, California 86 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 177 DIVISION NO. 4095 The Public Information Division provides an ongoing program of public information, which is designed to inform and educate community residents and business owners about the City’s activities, programs, and policies. A variety of methods and materials are utilized to disseminate information including the City’s monthly Community Newsletter, which provides current news and information; the City's web site; the local government access cable channel; local advertising; media releases and advisories; special publications; and community events. The Public Information Division is also responsible for the general marketing and promotion of the City at the local, regional and national levels, and provides assistance in support of economic development activities. The Division is also engaged in the facilitation of programs that recognize the efforts of individuals and organizations that contribute to the enhancement and general well being of the community. PUBLIC INFORMATION City of Diamond Bar, California 87 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 178 DEPARTMENT: Administration Support DIVISION: Public Information ORGANIZATION #:001-4095 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $ 248,266 $ 255,180 $ 255,180 $ 260,325 40020 Overtime Wages 5,351 6,000 6,000 6,000 40070 City Paid Benefits 3,044 3,158 3,158 2,998 40080 Classic Member Retirement 47,019 38,982 38,982 42,405 40081 Classic Member - UAL Pmt — 13,822 13,822 27,376 40083 Worker's Comp. Expense 4,909 4,936 4,936 5,070 40084 Short/Long Term Disability 1,460 1,506 1,506 1,546 40085 Medicare 3,977 3,969 3,969 3,801 40090 Benefit Allotment 38,837 40,176 40,176 41,676 TOTAL PERSONNEL $ 352,863 $ 367,729 $ 367,729 $ 391,197 SUPPLIES 41200 Operating Supplies $ 5,461 $ 5,000 $ 5,000 $ 5,000 41300 Small Tools & Equipment 3,787 5,750 4,250 4,750 41400 Promotional Supplies 31,047 24,500 24,500 24,500 TOTAL SUPPLIES $ 40,295 $ 35,250 $ 33,750 $ 34,250 OPERATING EXPENDITURES 42110 Printing $ 72,733 $ 95,000 $ 81,000 $ 85,000 42112 Photography 4,072 8,500 8,500 8,500 42115 Advertising 43,299 19,500 19,500 10,000 42120 Postage 58,700 58,650 51,000 58,200 42124 Technology 1,200 1,200 1,200 1,200 42315 Membership & Dues 1,455 3,875 2,615 1,835 42320 Publications 19 500 300 500 42325 Meetings 96 150 —150 42330 Travel-Conferences 5,067 4,900 3,550 6,050 42335 Travel-Mileage & Auto Allow 1,440 1,540 1,540 1,540 42340 Education & Training 20 500 260 500 TOTAL OPERATING EXP $ 188,101 $ 194,315 $ 169,465 $ 173,475 PROFESSIONAL SERVICES 44000 Professional Services $ 169,502 $ 88,650 $ 88,650 $ 88,650 TOTAL PROFESSIONAL SVCS $ 169,502 $ 88,650 $ 88,650 $ 88,650 CONTRACT SERVICES 45000 Contract Services $ 16,574 $ 18,274 $ 14,024 $ 4,700 TOTAL CONTRACT SERVICES $ 16,574 $ 18,274 $ 14,024 $ 4,700 DIVISION TOTAL $ 767,336 $ 704,218 $ 673,618 $ 692,272 PUBLIC INFORMATION City of Diamond Bar, California 88 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 179 DIVISION NO. 4096 The Economic Development division assists in the development and advancement of the local business community, and in the general promotion and marketing of the City of Diamond Bar. Among the functions of this division is the facilitation of programs and activities that are designed to enhance business retention and business attraction efforts, and provide business resource assistance for existing and potential businesses. ECONOMIC DEVELOPMENT City of Diamond Bar, California 89 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 180 DEPARTMENT: Administration Support DIVISION: Econ Development ORGANIZATION #:001-4096 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $83,481 $103,588 $103,588 $100,163 40020 Over Time Wages ——250 — 40070 City Paid Benefits 564 841 841 703 40080 Classic Member Retirement 15,350 15,842 15,842 16,142 40081 Classic Member - UAL Pmt —5,617 5,617 10,435 40083 Worker's Comp. Expense 708 2,006 1,010 1,932 40084 Short/Long Term Disability 312 612 612 589 40085 Medicare 1,215 1,513 1,513 1,461 40090 Benefit Allotment 7,308 12,315 12,315 13,464 TOTAL PERSONNEL $108,937 $142,334 $141,588 $144,889 OPERATING EXPENDITURES 42315 Membership & Dues $5,350 $5,750 $5,750 $5,750 42325 Meetings $—$2,500 $2,000 $2,500 42330 Travel - Conferences $—$3,000 $3,000 $3,000 TOTAL OPERATING EXP $5,350 $11,250 $10,750 $11,250 PROFESSIONAL SERVICES 44000 Professional Services $65,315 $132,576 $133,076 $105,000 TOTAL PROFESSIONAL SVCS $65,315 $132,576 $133,076 $105,000 CONTRACT SERVICES 45000 Contract Services $12,189 $12,000 $12,000 $12,000 TOTAL CONTRACT SERVICES $12,189 $12,000 $12,000 $12,000 DIVISION TOTAL $191,792 $298,160 $297,414 $273,139 ECONOMIC DEVELOPMENT City of Diamond Bar, California 90 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 181 ESTIMATED EXPENDITURES SUMMARY Organization #: 001-4411 through 001-4440 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed SUPPLIES $ 8,300 $ 25,000 $ 25,000 $ 27,000 OPERATING EXPENDITURES 24,754 46,200 44,304 46,050 PROFESSIONAL SERVICES 31,583 29,500 20,000 25,000 CONTRACT SERVICES 6,816,591 7,201,174 7,135,874 7,591,851 CAPITAL OUTLAY 4,596 5,000 5,000 5,000 DEPARTMENT TOTAL $ 6,885,824 $ 7,306,874 $ 7,230,178 $ 7,694,901 DEPARTMENT INCLUDES: 4411 Law Enforcement $ 7,409,850 4415 Volunteer Patrol 6,000 4421 Fire Protection 12,500 4431 Animal Control 196,501 4440 Emergency Preparedness 70,050 Total Department Expenditures $ 7,694,901 Law Enforcement 7,409,850 96.3% Volunteer Patrol $6,000 0.1% Fire Protection $12,500 0.2% Animal Control $196,501 2.6% Emergency Preparedness 70,050 0.9% PUBLIC SAFETY City of Diamond Bar, California 91 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 182 DIVISION NO. 4411 The City of Diamond Bar contracts with the Los Angeles County Sheriff's Department for law enforcement services. General law enforcement provides an assortment of deputies to provide law enforcement services including crime prevention and traffic enforcement, specialized suppression patrols and undercover operations, neighborhood watch and community relations, and the general enforcement of laws. Additionally, the law enforcement budget includes funds for additional as-needed special operations, as-needed aero bureau patrols, the City’s fingerprint program, and funding for the City’s Report for Reward program. This division also includes contract services for crossing guards and the administration of the City's parking citations. With the passage of AB408, Cities are now required to issue and collect their own parking citations. The City is currently under contract with DataTicket, Inc. for the administration of parking citations. The following is a breakdown of the proposed contracted sheriff's service levels: TYPE OF SERVICE NUMBER General Law Units: One-Man 56 Hour 10 One-Man 40 Hour 1 One-Man 40 Hour Non-Relief (Special Problems) 5 Community Service Assistant w/vehicle 1 Law Enforcement Technician 1 Narcotics Deputy (STAR) 1 Special Investigations As Requested Helicopter Patrol 4 hours per month DB Fingerprint Program As Required LAW ENFORCEMENT City of Diamond Bar, California 92 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 183 DEPARTMENT:Public Safety DIVISION: Law Enforcement ORGANIZATION #:001-4411 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed SUPPLIES 41200 Operating Supplies $876 $5,000 $5,000 $5,000 41300 Small Tools & Equipment —1,000 1,000 1,000 TOTAL SUPPLIES $876 $6,000 $6,000 $6,000 OPERATING EXPENDITURES 42200 Equipment Maintenance $366 $1,000 $1,000 $1,000 42325 Meetings 2,112 2,500 2,500 2,500 42361 Criminal Apprehension Award 500 5,000 5,000 2,500 42363 Public Safety Outreach 6,737 10,000 10,000 10,000 TOTAL OPERATING EXP $9,716 $18,500 $18,500 $16,000 CONTRACT SERVICES 45401 CS-Sheriff Department $6,318,667 $6,563,903 $6,563,903 $6,923,660 45402 CS-Sheriff /Special Events 142,040 241,100 175,800 247,250 45405 CS-Parking Citation Admin 26,995 30,000 30,000 30,000 45410 CS-Crossing Guard Services 148,020 174,000 174,000 186,940 TOTAL CONTRACT SERVICES $6,635,722 $7,009,003 $6,943,703 $7,387,850 DIVISION TOTAL $6,646,313 $7,033,503 $6,968,203 $7,409,850 LAW ENFORCEMENT City of Diamond Bar, California 93 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 184 DIVISION NO. 4415 The Community Volunteer Patrol Program was established in FY 94/95. This program is coordinated by the Los Angeles County Sheriff's Department and provides general support to law enforcement personnel. Diamond Bar Community Volunteer Patrol members routinely patrol the community and are responsible for reporting any suspicious activity and/or problems to the Sheriff's Department. In addition to their patrol activities, other assignments performed by the Community Volunteer Patrol include vacation and business security checks, park and special event security, graffiti watch, community relations, and other non-hazardous duties. VOLUNTEER PATROL City of Diamond Bar, California 94 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 185 DEPARTMENT:Public Safety DIVISION:Volunteer Patrol ORGANIZATION #:001-4415 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed SUPPLIES 41200 Operating Supplies $93 $1,000 $1,000 $1,000 TOTAL SUPPLIES $93 $1,000 $1,000 $1,000 OPERATING EXPENDITURES 42325 Meetings $2,561 $3,000 $3,000 $5,000 TOTAL OPERATING EXP $2,561 $3,000 $3,000 $5,000 DIVISION TOTAL $2,654 $4,000 $4,000 $6,000 VOLUNTEER PATROL City of Diamond Bar, California 95 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 186 DIVISION NO. 4421 The City is a part of the Consolidated Fire Protection District. The district provides fire and emergency medical services. Upon incorporation, the City became responsible for fire protection within the City boundaries, therefore the City assumed wildland fire protection. This has required additional resources to be used by the Consolidated Fire Protection District. It is a responsibility of the City to pay annually for these added costs. FIRE PROTECTION City of Diamond Bar, California 96 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 187 DEPARTMENT:Public Safety DIVISION:Fire Protection ORGANIZATION #:001-4421 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed CONTRACT SERVICES 45404 Contract Services-Fire Dept $7,359 $7,500 $7,500 $7,500 TOTAL CONTRACT SERVICES $7,359 $7,500 $7,500 $7,500 CAPITAL OUTLAY 46250 Misc Equipment $4,596 $5,000 $5,000 $5,000 TOTAL CAPITAL OUTLAY $4,596 $5,000 $5,000 $5,000 DIVISION TOTAL $11,955 $12,500 $12,500 $12,500 FIRE PROTECTION City of Diamond Bar, California 97 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 188 DIVISION NO. 4431 Animal Control provides for the care, protection, and control of animals that stray from their homes or are abused by their owners. This service, currently under contract with the Inland Valley Humane Society, includes enforcement of leash laws and the provision of a shelter for homeless animals. In addition to the services rendered by the Humane Society, the City has been called upon to assist in the control of coyotes within the City. Additional funding has been included to fund these activities. ANIMAL CONTROL City of Diamond Bar, California 98 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 189 DEPARTMENT:Public Safety DIVISION:Animal Control ORGANIZATION #:001-4431 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed CONTRACT SERVICES 45403 CS - Animal Control $169,938 $177,171 $177,171 $189,001 45406 CS - Wild Animal Control 3,573 7,500 7,500 7,500 TOTAL CONTRACT SERVICES $173,511 $184,671 $184,671 $196,501 DIVISION TOTAL $173,511 $184,671 $184,671 $196,501 ANIMAL CONTROL City of Diamond Bar, California 99 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 190 DIVISION NO. 4440 The preservation of life and property is an inherent responsibility of local, state and federal governments. The City of Diamond Bar has prepared several planning and response documents, which serve as the basis for the City's emergency organization and emergency operations. The primary objective is to enhance the overall capability of government to respond to emergencies. This is accomplished by incorporating the policies, principles, concepts and procedures contained within the City’s emergency plans into an efficient organization capable of responding adequately in the face of any disaster. EMERGENCY PREPAREDNESS City of Diamond Bar, California 100 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 191 DEPARTMENT:Public Safety DIVISION: Emergency Prep ORGANIZATION #:001-4440 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed SUPPLIES 41200 Operating Supplies $7,331 $18,000 $18,000 $20,000 TOTAL SUPPLIES $7,331 $18,000 $18,000 $20,000 OPERATING EXPENDITURES 42125 Telephone $5,341 $8,650 $7,150 $8,700 42126 Utilities 250 4,350 4,350 4,500 42130 Rental/Lease - Equipment 945 1,000 1,000 1,000 42140 Rental/Lease - Real Property 150 150 150 150 42200 Equipment Maintenance 2,684 5,500 5,500 5,500 42315 Membership & Dues 2,866 3,200 2,854 3,200 42340 Education & Training 241 1,850 1,800 2,000 TOTAL OPERATING EXP $12,477 $24,700 $22,804 $25,050 PROFESSIONAL SERVICES 44000 Professional Services $31,583 $29,500 $20,000 $25,000 TOTAL PROFESSIONAL SVCS $31,583 $29,500 $20,000 $25,000 DIVISION TOTAL $51,391 $72,200 $60,804 $70,050 EMERGENCY PREPAREDNESS City of Diamond Bar, California 101 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 192 ESTIMATED EXPENDITURES SUMMARY Organization #: 001-5210 through 001-5230 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES $ 975,576 $ 1,003,044 $ 1,007,510 $ 1,109,499 SUPPLIES 4,622 4,850 6,050 6,100 OPERATING EXPENDITURES 17,719 25,450 18,263 20,250 PROFESSIONAL SERVICES 9,871 8,150 5,600 10,000 CONTRACT SERVICES 731,288 785,116 788,435 587,300 DEPARTMENT TOTAL $ 1,739,077 $ 1,826,610 $ 1,825,858 $ 1,733,149 DEPARTMENT INCLUDES: 5210 Planning $ 721,579 5220 Building & Safety 703,757 5230 Neighborhood Improvement 307,813 Total Department Expenditures $ 1,733,149 Planning 721,579 41.6% Building and Safety 703,757 40.6% Neighborhood Improvement 307,813 17.8% COMMUNITY DEVELOPMENT City of Diamond Bar, California 102 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 193 DIVISION NO. 5210 The Planning Division is responsible for the functions related to current and long-term advance”) planning, and economic development. The Planning Division prepares and updates the City’s General Plan to guide Diamond Bar’s long-term growth and preservation of the community’s quality of life. The Division administers and updates the zoning and subdivision ordinances, which are the primary tools used to implement the General Plans land use and development goals, objectives and policies. The planners provide information and assistance to the public by explaining the City’s zoning regulations, and reviewing all land use, development and business license applications, and performing inspections to ensure compliance with regulations and conditions of approval. For projects requiring Planning Commission and City Council review, the Planning Division serves as those bodies’ technical staff, and provides recommendations based on analysis of environmental, land use compatibility and design factors. The Planning Division is also responsible for the development and administration of economic development. It updates and maintains records for the general public and coordinates projects and programs with other governmental agencies. PLANNING City of Diamond Bar, California 103 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 194 DEPARTMENT: Community Development DIVISION:Planning ORGANIZATION #:001-5210 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $ 431,813 $ 445,563 $ 445,563 $ 467,690 40020 Over-Time Wages 5,278 5,000 5,000 5,000 40070 City Paid Benefits 5,243 5,400 5,400 5,162 40080 Classic Member Retirement 82,746 69,035 69,035 77,258 40081 Classic Member - UAL Pmt — 24,477 24,047 49,882 40083 Worker's Comp. Expense 7,661 7,947 16,343 8,396 40084 Short/Long Term Disability 2,417 2,666 2,666 2,817 40085 Medicare 6,543 6,756 6,756 6,897 40090 Benefit Allotment 68,345 69,840 69,840 72,876 TOTAL PERSONNEL $ 610,043 $ 636,684 $ 644,650 $ 695,979 SUPPLIES 41200 Operating Supplies $ 2,093 $ 1,200 $ 2,400 $ 2,400 TOTAL SUPPLIES $ 2,093 $ 1,200 $ 2,400 $ 2,400 OPERATING EXPENDITURES 42110 Printing $ 497 $ 1,000 $500 $ 500 42115 Advertising 1,796 2,400 500 1,000 42120 Postage 813 1,000 200 200 42124 Technology 1,200 1,200 1,200 1,200 42315 Membership & Dues 1,529 2,000 1,600 1,800 42320 Publications 581 800 800 800 42325 Meetings 1,087 1,000 100 200 42330 Travel-Conferences 3,370 4,000 3,000 4,000 42335 Travel-Mileage & Auto Allow 3,000 3,500 3,200 3,200 42340 Education & Training 258 500 250 300 TOTAL OPERATING EXP $ 14,130 $ 17,400 $ 11,350 $ 13,200 PROFESSIONAL SERVICES 44000 Professional Services $ 4,445 $ 3,000 $600 $ 3,000 44100 Commission Compensation 3,835 2,150 3,500 4,000 44240 Prof Services - Environmental 1,591 3,000 1,500 3,000 TOTAL PROFESSIONAL SVCS $ 9,871 $ 8,150 $ 5,600 $ 10,000 DIVISION TOTAL $ 636,138 $ 663,434 $ 664,000 $ 721,579 PLANNING City of Diamond Bar, California 104 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 195 DIVISION NO. 5220 The Building and Safety Division is responsible for the protection of public health and safety through the enforcement of Building Codes and other related codes. This Division provides for Building and Safety plan check, permit issuance, and inspection services. Much of the plan check and inspections are provided through contract services. BUILDING & SAFETY City of Diamond Bar, California 105 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 196 DEPARTMENT: Community Development DIVISION: Building & Safety ORGANIZATION #:001-5220 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $92,139 $90,129 $90,129 $109,603 40020 Over-Time Wages —200 200 250 40070 City Paid Benefits 866 1,305 1,305 864 40080 Classic Member Retirement 17,758 13,640 13,640 17,727 40081 Classic Member - UAL Pmt —4,836 4,836 11,441 40083 Worker's Comp. Expense 1,032 1,007 1,007 1,171 40084 Short/Long Term Disability 502 527 527 646 40085 Medicare 1,238 1,307 1,307 1,596 40090 Benefit Allotment 17,466 16,686 16,686 18,960 TOTAL PERSONNEL $130,998 $129,637 $129,637 $162,257 SUPPLIES 41200 Operating Supplies $1,662 $2,500 $2,500 $2,500 TOTAL SUPPLIES $1,662 $2,500 $2,500 $2,500 OPERATING EXPENDITURES 42110 Printing $—$500 $500 $500 42128 Banking Charges 550 1,000 1,000 1,000 42340 Education & Training —500 500 500 TOTAL OPERATING EXP $550 $2,000 $2,000 $2,000 CONTRACT SERVICES 45201 CS-Building & Safety $686,806 $727,635 $727,635 $537,000 TOTAL CONTRACT SERVICES $686,806 $727,635 $727,635 $537,000 DIVISION TOTAL $820,017 $861,772 $861,772 $703,757 BUILDING & SAFETY City of Diamond Bar, California 106 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 197 DIVISION NO. 5230 The City’s Neighborhood Improvement Officers work proactively to investigate Municipal Code violations and in response to complaints filed by concerned residents, business operators or property owners. The Diamond Bar Municipal Code is based on high standards set by the residents and business owners to ensure an attractive and well-maintained community. It is the responsibility of the Neighborhood Improvement Officers to make sure the community conforms to the standards set by the code. NEIGHBORHOOD IMPROVEMENT City of Diamond Bar, California 107 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 198 DEPARTMENT: Community Development DIVISION: Neighborhood Improvement ORGANIZATION #:001-5230 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $160,540 $152,602 $152,602 $174,626 40020 Over-Time Wages 5,445 8,500 5,000 5,000 40070 City Paid Benefits 1,814 2,867 2,867 2,727 40080 Classic Member Retirement 28,572 18,089 18,089 8,817 40081 Classic Member - UAL Pmt —6,481 6,481 6,223 40082 PEPRA Member Retirement 71 4,202 4,202 8,390 40083 Worker's Comp. Expense 2,832 3,063 3,063 3,143 40084 Short/Long Term Disability 884 1,024 1,024 1,051 40085 Medicare 2,632 2,617 2,617 2,598 40090 Benefit Allotment 31,746 37,278 37,278 38,688 TOTAL PERSONNEL $234,534 $236,723 $233,223 $251,263 SUPPLIES 41200 Operating Supplies $867 $1,150 $1,150 $1,200 TOTAL SUPPLIES $867 $1,150 $1,150 $1,200 OPERATING EXPENDITURES 42110 Printing $1,387 $2,000 $2,000 $2,000 42315 Membership & Dues 559 600 600 600 42325 Meetings —100 200 200 42330 Travel-Conferences 1,093 3,000 1,363 1,500 42335 Travel-Mileage and Auto —50 50 50 42340 Education & Training —300 700 700 TOTAL OPERATING EXP $3,039 $6,050 $4,913 $5,050 CONTRACT SERVICES 45213 CS-Code Enforcement $9,538 $17,481 $20,800 $8,000 45214 CS - Property Abatement —3,000 3,000 5,000 45520 CS-Graffiti Removal 34,944 37,000 37,000 37,300 TOTAL CONTRACT SERVICES $44,482 $57,481 $60,800 $50,300 DIVISION TOTAL $282,922 $301,404 $300,086 $307,813 NEIGHBORHOOD IMPROVEMENT City of Diamond Bar, California 108 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 199 ESTIMATED EXPENDITURES SUMMARY Organization #: 001-5333 through 001-5350 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES $ 1,790,864 $ 2,200,639 $ 2,152,247 $ 2,236,679 SUPPLIES 158,950 164,850 166,550 143,400 OPERATING EXPENDITURES 375,587 531,592 526,580 442,945 PROFESSIONAL SERVICES 8,769 22,950 22,750 27,000 CONTRACT SERVICES 495,548 583,854 578,854 556,040 CAPITAL OUTLEY 53,032 26,653 21,759 22,500 DEPARTMENT TOTAL $ 2,882,751 $ 3,530,538 $ 3,468,740 $ 3,428,564 DEPARTMENT INCLUDES: 5333 Diamond Bar Center 1,440,125 5350 Recreation 1,988,439 Total Department Expenditures $ 3,428,564 Diamond Bar Center 1,440,125 42.0% Recreation 1,988,439 58.0% PARKS & RECREATION City of Diamond Bar, California 109 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 200 DIVISION NOS. 5333-5350 The Parks & Recreation Department administers the City's community recreation program, including community events, enrichment programs, athletics, excursions, activities, and facilities for residents of all ages. The Parks & Recreation Department also oversees the operation of the Diamond Bar Center, a facility offering public programs and private meeting and event space. PARKS & RECREATION City of Diamond Bar, California 110 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 201 DEPARTMENT: Parks & Recreation DIVISION:D-Bar Center ORGANIZATION #:001-5333 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $187,093 $301,096 $301,096 $319,474 40020 Over-Time Wages 4,768 7,000 7,000 6,000 40030 Part-Time Salaries 358,378 393,700 393,700 390,500 40070 City Paid Benefits 3,280 4,946 4,946 3,913 40080 Classic Member Retirement 27,369 29,876 29,876 34,512 40081 Classic Member - UAL Pmt —10,593 10,593 22,767 40082 PEPRA Member Retirement 93 8,650 8,650 7,697 40083 Worker's Comp. Expense 14,837 18,982 18,982 8,141 40084 Short/Long Term Disability 1,140 1,808 1,808 1,928 40085 Medicare 29,987 10,317 10,317 10,482 40087 Social Security 416 24,273 24,273 6,100 40090 Benefit Allotment 46,346 63,126 63,126 62,086 TOTAL PERSONNEL $673,708 $874,367 $874,367 $873,600 SUPPLIES 41200 Operating Supplies $55,251 $35,150 $35,150 $34,000 41300 Small Tools & Equipment 265 2,000 2,000 2,000 TOTAL SUPPLIES $55,517 $37,150 $37,150 $36,000 OPERATING EXPENDITURES 42110 Printing $3,153 $19,950 $19,950 $16,400 42115 Advertising —30,000 30,000 30,000 42124 Technology 600 612 600 1,800 42125 Telephone 4,306 ——— 42126 Utilities 88,785 102,500 102,500 107,625 42130 Rental/Lease - Equipment 5,034 8,500 8,500 4,500 42141 Rental/Lease - Exhibit Space 2,198 2,500 2,500 2,500 42200 Equipment Maintenance 14,472 30,725 30,725 34,100 42210 Maint. of Grounds/Buildings 38,486 97,820 97,820 82,510 42330 Travel - Conferences 2,003 500 500 2,500 42335 Travel - Mileage & Auto All —1,500 1,500 1,500 TOTAL OPERATING EXP $159,038 $294,607 $294,595 $283,435 PROFESSIONAL SERVICES 44000 Professional Services $6,519 $20,250 $20,250 $19,500 TOTAL PROFESSIONAL SVCS $6,519 $20,250 $20,250 $19,500 CONTRACT SERVICES 45010 CS-Security $39,194 $50,344 $50,344 $53,000 45300 CS-Parks & Recreation 141,537 125,880 125,880 152,090 TOTAL CONTRACT SERVICES $180,731 $176,224 $176,224 $205,090 DIAMOND BAR CENTER OPERATIONS City of Diamond Bar, California 111 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 202 CAPITAL OUTLAY 46250 Misc Equipment $13,774 $21,759 $21,759 $22,500 46410 Capital Improvements 39,258 4,894 —— TOTAL CAPITAL OUTLAY $53,032 $26,653 $21,759 $22,500 DIVISION TOTAL $1,128,546 $1,429,251 $1,424,345 $1,440,125 DIAMOND BAR CENTER OPERATIONS City of Diamond Bar, California 112 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 203 DEPARTMENT: Parks & Recreation DIVISION:Recreation ORGANIZATION #:001-5350 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $ 465,152 $ 551,950 $551,950 $ 618,551 40020 Over-Time Wages 16,919 19,600 18,600 10,300 40030 Part-Time Salaries 343,212 425,450 382,100 382,775 40070 City Paid Benefits 8,719 12,227 10,000 9,996 40080 Classic Member Retirement 88,799 69,882 69,882 79,480 40081 Classic Member - UAL Pmt —23,680 21,865 52,061 40082 PEPRA Member Retirement 196 12,421 12,421 13,175 40083 Worker's Comp. Expense 18,363 22,959 22,959 14,782 40084 Short/Long Term Disability 3,415 3,638 3,638 4,039 40085 Medicare 30,385 14,691 14,691 15,500 40087 Social Security 702 22,984 22,984 6,000 40090 Benefit Allotment 141,295 146,790 146,790 156,420 TOTAL PERSONNEL $ 1,117,156 $ 1,326,272 $ 1,277,880 $ 1,363,079 SUPPLIES 41200 Operating Supplies $98,381 $ 127,700 $129,400 $ 107,400 41210 Car Show Supplies 3,000 ——— 41300 Small Tools & Equipment 2,052 ——— TOTAL SUPPLIES $ 103,434 $ 127,700 $129,400 $ 107,400 OPERATING EXPENDITURES 42110 Printing $13,309 $24,400 $24,400 $18,400 42115 Advertising ———9,000 42120 Postage Charges 14 ——— 42124 Technology Allowance —600 600 1,200 42128 Banking Charges 30,416 24,000 24,000 5,000 42130 Rental/Lease of Equipment 43,712 45,800 45,800 19,600 42140 Rental/Lease of Real Property 38,711 47,000 47,000 47,500 42145 Rental/Lease Rides & Attractions 38,896 29,000 24,000 — 42315 Membership & Dues 2,175 3,635 3,635 3,660 42320 Publications —100 100 100 42325 Meetings 1,800 2,500 2,500 2,000 42330 Travel - Conferences 2,770 8,500 8,500 3,000 42335 Travel - Mileage & Auto Allowance 81 1,500 1,500 1,500 42340 Education & Training 1,378 3,400 3,400 3,000 42410 Admissions-Youth Activities 43,286 46,550 46,550 45,550 TOTAL OPERATING EXP $ 216,549 $ 236,985 $231,985 $ 159,510 PROFESSIONAL SERVICES 44000 Professional Service $— $— $500 $4,800 44100 Commission Compensation $2,250 $2,700 $2,000 $2,700 TOTAL PROFESSIONAL SVCS $2,250 $2,700 $2,500 $7,500 CONTRACT SERVICES 45300 CS-Parks & Recreation $ 141,840 $ 209,130 $204,130 $ 150,950 45305 CS-Concerts in the Park 21,352 ——— 45306 CS-City Birthday 1,440 ——— 45310 CS-Excursions 10,965 15,500 15,500 17,000 45320 CS-Contract Classes 128,719 158,000 158,000 158,000 45402 CS-Sheriff's Dept Special Events 10,501 25,000 25,000 25,000 TOTAL CONTRACT SERVICES $ 314,817 $ 407,630 $402,630 $ 350,950 DIVISION TOTAL $1,754,205 $2,101,287 $2,044,395 $1,988,439 RECREATION City of Diamond Bar, California 113 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 204 DIVISION NOS. 5510-5558 The Public Works Department is committed to providing for the efficient operation of public works systems and programs. The vital services include: planning, designing, constructing, and monitoring the City’s roadways and sidewalk infrastructure as well as sewer and storm drain systems; overseeing traffic management/control systems and traffic signal timing programs; maintaining and repairing all City buildings and fleet of vehicles and equipment; maintaining public parks/public property and Landscape Assessment Districts’ medians, parkways, mini parks, slopes, and open space; managing the engineering design and construction of the City’s robust capital improvements program; reviewing/planning and permitting land development activities and subdivisions; and managing environmental programs such as the National Pollutant Discharge Elimination System (NPDES). The Department budget consists of Public Works Administration, Engineering, Road Maintenance, Parks and Facilities Maintenance, and Landscape Maintenance. Public Works is also actively involved in representing community’s interests on significant regional issues, such as storm water and transportation. Together, these programs provide a wide variety of vital services to Diamond Bar. The Department is committed to providing high-quality professional services to the community and works diligently to ensure that our infrastructure and facilities are well-designed, engineered and constructed properly, and maintained and/or modified in professional and safe conditions. PUBLIC WORKS City of Diamond Bar, California 114 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 205 ESTIMATED EXPENDITURES SUMMARY Organization #: 001-5510 through 001-5558 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES $ 1,395,474 $ 1,389,961 $ 1,411,875 $ 1,451,667 SUPPLIES 88,375 141,601 124,600 111,700 OPERATING EXPENDITURES 559,351 705,330 667,230 688,494 PROFESSIONAL SERVICES 224,702 222,500 214,500 227,500 CONTRACT SERVICES 2,266,386 2,971,609 2,863,891 2,495,513 CAPITAL OUTLAY 735,882 198,184 118,184 45,000 DEPARTMENT TOTAL $ 5,270,171 $ 5,629,185 $ 5,400,280 $ 5,019,874 DEPARTMENT INCLUDES: 5510 Public Works Administration $ 729,030 5551 Engineering 932,263 5554 Road Maintenance 1,566,328 5556 Parks & Facilities Maintenance 1,460,368 5558 Landscape Maintenance 331,885 Total Department Expenditures $ 5,019,874 PW Administration 729,030 14.5% Engineering 932,263 18.6% Road Maintenance 1,566,328 31.2% Parks & Facilities Maintenance 1,460,368 29.1% Landscape Maintenance 331,885 6.6% PUBLIC WORKS City of Diamond Bar, California 115 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 206 DEPARTMENT:Public Works DIVISION: Public Works Administration ORGANIZATION #:001-5510 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $ 371,318 $ 280,320 $ 280,320 $ 301,620 40020 Over-Time Wages 156 —500 500 40070 City Paid Benefits 3,853 3,168 3,168 3,077 40080 Classic Member Retirement 65,876 45,520 45,520 45,972 40081 Classic Member - UAL Pmt —16,140 16,140 29,791 40082 PEPRA Member Retirement 32 —1,542 1,542 40083 Worker's Comp. Expense 6,584 5,151 5,151 5,380 40084 Short/Long Term Disability 1,986 1,758 1,758 1,811 40085 Medicare 5,423 4,393 4,393 4,405 40090 Benefit Allotment 52,446 35,451 35,451 43,192 TOTAL PERSONNEL $ 507,675 $ 391,901 $ 393,943 $ 437,290 SUPPLIES 41200 Operating Supplies $ 2,993 $ 4,500 $4,000 $ 4,500 41300 Small Tools & Equipment —500 100 500 TOTAL SUPPLIES $ 2,993 $ 5,000 $4,100 $ 5,000 OPERATING EXPENDITURES 42110 Printing $ 4,075 $ 8,000 $3,500 $ 4,000 42115 Advertising —30,000 11,000 8,000 42124 Technology 1,800 1,800 1,800 1,800 42126 Utilities 74,406 ——— 42315 Membership & Dues 1,164 2,000 2,000 2,000 42320 Publications 1,000 1,500 1,500 1,500 42325 Meetings 1,462 500 500 500 42330 Travel-Conferences 2,918 4,000 4,000 4,000 42335 Travel-Mileage & Auto Allow 3,000 3,000 3,000 4,440 42340 Education & Training 824 3,000 3,000 3,000 TOTAL OPERATING EXP $ 90,648 $ 53,800 $ 30,300 $ 29,240 PROFESSIONAL SERVICES 44000 Professional Services $800 $ 1,500 $1,500 $ 1,500 44100 Commissioner Compensation 2,000 3,000 3,000 3,000 44240 Prof Svcs-Environmental 139,166 218,000 210,000 223,000 TOTAL PROFESSIONAL SVCS $ 141,966 $ 222,500 $ 214,500 $ 227,500 CONTRACT SERVICES 45000 CS - Contract Services $ 13,138 $— $— $— 45530 CS - Industrial Waste 29,031 30,000 30,000 30,000 TOTAL CONTRACT SERVICES $ 42,168 $ 30,000 $ 30,000 $ 30,000 DIVISION TOTAL $ 785,450 $ 703,201 $ 672,843 $ 729,030 PUBLIC WORKS ADMINISTRATION City of Diamond Bar, California 116 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 207 DEPARTMENT:Public Works DIVISION:Engineering ORGANIZATION #:001-5551 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $117,380 $145,278 $145,278 $151,554 40020 Over-time Wages 289 1,500 1,500 1,500 40070 City Paid Benefits 1,422 2,266 2,266 1,861 40080 Classic Member Retirement 19,329 16,776 16,776 21,576 40081 Classic Member - UAL Pmt —10,469 24,489 14,024 40083 Worker's Comp. Expense 2,304 3,557 3,557 3,074 40084 Short/Long Term Disability 712 1,140 1,140 921 40085 Medicare 1,795 2,890 2,890 2,238 40090 Benefit Allotment 20,165 24,984 24,984 27,773 TOTAL PERSONNEL $163,456 $208,860 $225,880 $226,063 OPERATING EXPENDITURES 42315 Membership & Dues $1,003 $2,000 $1,800 $1,800 42325 Meetings 699 750 750 750 42330 Travel-Conferences —500 300 500 42335 Travel-Mileage & Auto Allow 11 500 200 200 42340 Education & Training 597 1,000 500 1,000 TOTAL OPERATING EXP $2,310 $4,750 $3,550 $4,250 CONTRACT SERVICES 45221 CS - Engineering $224,683 $475,380 $442,250 $241,950 45222 CS - Traffic 72,660 373,400 373,400 365,000 45223 CS - Plan Checking 28,680 31,971 20,000 45,000 45224 CS - Soils 8,880 37,650 20,000 20,000 45226 CS - Surveying 3,972 10,000 4,000 10,000 45227 CS - Inspection 16,339 53,967 25,000 20,000 TOTAL CONTRACT SERVICES $355,213 $982,368 $884,650 $701,950 DIVISION TOTAL $520,978 $1,195,978 $1,114,080 $932,263 ENGINEERING City of Diamond Bar, California 117 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 208 DEPARTMENT:Public Works DIVISION: Road Maintenance ORGANIZATION #:001-5554 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $223,341 $274,830 $277,000 $265,993 40020 Over-Time Wages 3,567 3,500 3,500 3,500 40070 City Paid Benefits 3,166 4,385 4,385 3,457 40080 Classic Member Retirement 42,449 38,703 38,703 39,419 40081 Classic Member - UAL Pmt —13,723 13,723 25,540 40082 PEPRA Member Retirement 29 1,823 1,823 1,692 40083 Worker's Comp. Expense 6,250 7,707 7,707 7,316 40084 Short/Long Term Disability 1,324 1,633 1,633 1,584 40085 Medicare 3,389 4,225 4,225 3,939 40090 Benefit Allotment 45,061 57,068 57,843 52,888 TOTAL PERSONNEL $328,577 $407,597 $410,542 $405,328 SUPPLIES 41200 Operating Supplies $2,972 $500 $1,000 $1,000 41250 Road Maintenance Supplies 31,884 81,601 65,000 50,000 41300 Small Tools & Equipment 19,668 10,000 10,000 10,000 TOTAL SUPPLIES $54,524 $92,101 $76,000 $61,000 OPERATING EXPENDITURES 42126 Utilities $—$85,000 $85,000 $90,000 42130 Rental/Lease of Equip $1,937 $4,000 $4,000 $4,000 42200 Equipment Maintenance 717 6,000 2,000 6,000 TOTAL OPERATING EXP $2,674 $95,000 $91,000 $100,000 PROFESSIONAL SERVICES 44520 Prof Svcs - Engineering $82,736 $—$—$— TOTAL PROFESSIONAL SVCS $82,736 $—$—$— CONTRACT SERVICES 45501 CS-Street Sweeping $176,489 $180,000 $180,000 $180,000 45502 CS-Road Maintenance 204,511 195,000 185,000 195,000 45504 CS-Sidewalk Insp & Repair 394,862 250,000 250,000 270,000 45506 CS-Striping & Signing —50,000 50,000 50,000 45507 CS-Traffic Signal Maintenance 199,023 279,250 279,250 90,000 45508 CS - Vegetation Control 120,000 130,000 130,000 130,000 45512 CS-Storm Drainage 11,272 30,000 30,000 35,000 45522 CS-Right of Way Maintenance 30,000 50,000 50,000 50,000 TOTAL CONTRACT SERVICES $1,136,157 $1,164,250 $1,154,250 $1,000,000 CAPITAL OUTLAY 46250 Misc Equipment $—$80,000 $—$— TOTAL CAPITAL OUTLAY $—$80,000 $—$— DIVISION TOTAL $1,604,667 $1,838,948 $1,731,792 $1,566,328 ROAD MAINTENANCE City of Diamond Bar, California 118 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 209 DEPARTMENT:Public Works DIVISION: Parks & Facility Maintenance ORGANIZATION #:001-5556 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed PERSONNEL SERVICES 40010 Salaries $235,953 $231,250 $231,250 $224,039 40020 Over-Time Wages 11,207 8,000 8,000 8,000 40030 Part-Time Salaries 36,912 36,000 36,000 36,941 40070 City Paid Benefits 3,441 3,529 3,529 2,805 40080 Classic Member Retirement 43,195 30,215 30,125 34,188 40081 Classic Member - UAL Pmt —10,713 10,710 22,122 40082 PEPRA Member Retirement 42 2,536 2,536 964 40083 Worker's Comp. Expense 6,789 5,130 5,130 6,019 40084 Short/Long Term Disability 1,427 1,359 1,359 1,330 40085 Medicare 6,473 4,037 4,037 3,933 40087 Social Security 50 2,232 2,232 575 40090 Benefit Allotment 50,276 46,602 46,602 42,070 TOTAL PERSONNEL $395,767 $381,603 $381,510 $382,986 SUPPLIES 41200 Operating Supplies $28,365 $39,500 $39,500 $40,700 41300 Small Tools & Equipment 2,494 5,000 5,000 5,000 TOTAL SUPPLIES $30,858 $44,500 $44,500 $45,700 OPERATING EXPENDITURES 42125 Telephone $3,203 $—$—$— 42126 Utilities 306,010 351,225 351,225 368,754 42130 Rental/Lease of Equipment 4,102 8,700 8,700 7,500 42210 Maint. of Grounds/Bldgs 149,955 181,005 181,005 172,300 42330 Travel-Conferences 450 10,850 1,450 6,450 TOTAL OPERATING EXP $463,720 $551,780 $542,380 $555,004 CONTRACT SERVICES 45300 CS-Park & Facility Maint $390,234 $447,278 $447,278 $431,678 TOTAL CONTRACT SERVICES $390,234 $447,278 $447,278 $431,678 CAPITAL OUTLAY 46250 Misc Equipment $—$118,184 $118,184 $45,000 46305 Real Estate Acquisition $735,882 $—$—$— TOTAL CAPITAL OUTLAY $735,882 $118,184 $118,184 $45,000 DIVISION TOTAL $2,016,462 $1,543,345 $1,533,852 $1,460,368 PARKS & FACILITIES MAINTENANCE City of Diamond Bar, California 119 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 210 DEPARTMENT:Public Works DIVISION: Landscape Maintenance ORGANIZATION #:001-5558 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed CONTRACT SERVICES 45500 CS - Public Works $34,643 $50,000 $50,000 $35,000 45503 CS - Parkway Maintenance 26,832 29,196 29,196 30,072 45509 CS - Tree Maintenance 262,935 244,993 244,993 243,289 45510 CS - Tree Watering 18,203 23,524 23,524 23,524 TOTAL CONTRACT SERVICES $342,613 $347,713 $347,713 $331,885 DIVISION TOTAL $342,613 $347,713 $347,713 $331,885 LANDSCAPE MAINTENANCE City of Diamond Bar, California 120 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 211 DEPARTMENT:Transfers-Out DIVISION:Transfers-Out ORGANIZATION #:001-9915 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed OPERATING TRANSFER OUT 49011 Transfer Out-Com Orgnztn Fd $14,712 $20,000 $20,000 $20,000 49015 Transfer Out - Gen Plan 33,007 ——— 49018 Transfer Out - IS Replcmt Fund 100,000 ——— 49134 Transfer Out - Tres Hermanos Fund — 55,000 55,000 70,000 49370 Transfer Out-Debt Service Fd 859,059 858,307 858,092 860,706 49510 Transfer Out-Self Ins Fund 460,706 456,628 456,628 487,451 49520 Transfer Out - Vehicle Replace ——150,000 — 49530 Transfer Out-Equip Replcmt 401,949 368,800 368,800 109,000 TOTAL OPERATING TRANSFERS $1,869,433 $1,758,735 $1,908,520 $1,547,157 USES OF FUND BALANCE RESERVES 49138 Transfer Out-LLAD #38 146,199 111,215 111,738 60,499 49139 Transfer Out-LLAD #39 3,737 277,759 277,957 169,068 49141 Transfer Out-LLAD #41 84,865 171,938 172,138 199,501 49250 Transfer Out-CIP Fund 738,733 2,323,933 1,615,694 467,459 49530 Transfer Out-Equip Replcmt 26,825 870,442 870,442 — TOTAL USE OF RESERVES $1,000,359 $3,755,287 $3,047,969 $896,527 TOTAL TRANSFERS OUT $2,869,792 $5,514,022 $4,956,489 $2,443,684 TRANSFERS OUT City of Diamond Bar, California 121 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 212 PERSONNEL SUMMARY City of Diamond Bar, California 122 FY 2019/20 Proposed Budget Budget FY 2017/18 Budget FY 2018/19 Budget FY 2019/20 Department Full Part Total Full Part Total Full Part Total of TotalTimeTime*Time Time*Time Time* City Manager's Office 10.00 0.43 10.43 10.00 0.43 10.43 10.00 0.43 10.43 12 % Community Development 8.00 0.43 8.43 8.00 0.43 8.43 8.00 0.43 8.43 10 % Finance 5.00 — 5 5.00 — 5.00 5.00 — 5.00 6 % Information Systems 4.00 — 4 4.00 — 4.00 4.00 — 4.00 5 % Parks and Recreation 11.00 25.45 36.45 11.00 28.00 39.00 11.00 28.44 39.44 46 % Public Information 3.00 — 3 3.00 — 3.00 3.00 — 3.00 3 % Public Works 15.00 1.33 16.33 15.00 1.33 16.33 15.00 1.33 16.33 19 % Total 56.00 27.64 83.64 56.00 30.19 86.19 56.00 30.63 86.63 100% Part-time staff hours are converted to full-time equivalencies (FTEs) - one FTE equals 40 hours per week, 52 weeks per year. CITYWIDE AUTHORIZED PERSONNEL FY 2019/20 City Manager's Office: 12% Community Development: 10%Finance: 6% Information Systems: 5% Parks and Recreation: 46% Public Information: 3% Public Works: 19% 8.1.b Packet Pg. 213 Fiscal Year 2019 - 2020 CITY MANAGER'S OFFICE Job Title Authorized Funded City Manager 1 1 Assistant City Manager 1 1 City Clerk 1 1 Administrative Assistant 1 1 Senior Office Specialist 1 1 Human Resources & Risk Manager 1 1 Human Resources Technician 1 1 Assistant to the City Manager 1 1 Management Analyst/Senior MA 2 2 Total:10 10 PUBLIC INFORMATION Job Title Authorized Funded Public Information Manager 1 1 Public Information Coordinator 1 1 Media Specialist 1 1 Total:3 3 PARKS AND RECREATION Job Title Authorized Funded Parks and Recreation Director 1 1 Administrative Assistant 1 1 Recreation Supervisor 2 2 Recreation Coordinator 2 2 Recreation Specialist 4 4 Recreation Superintendent 1 1 Total:11 11 FINANCE Job Title Authorized Funded Finance Director 1 1 Senior Accountant 1 1 Accountant 1 1 Accounting Technician 2 2 Total:5 5 FULL-TIME BENEFITTED PERSONNEL SUMMARY City of Diamond Bar, California 123 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 214 INFORMATION SYSTEMS Job Title Authorized Funded Information Systems Director 1 1 Network Systems Administrator 1 1 Information Systems Analyst 1 1 Network/Systems Technician 1 1 Total:4 4 COMMUNITY DEVELOPMENT Job Title Authorized Funded Community Development Director 1 1 Administrative Coordinator 1 1 Senior Planner 1 1 Assistant/Associate Planner 2 2 Permit Services Coordinator 1 1 Neighborhood Improvement Officer/Senior NIO 2 2 Total:8 8 PUBLIC WORKS Job Title Authorized Funded Public Works Director 1 1 Public Works Manager/Assistant City Engineer 1 1 Administrative Coordinator 2 2 Assistant/Associate Engineer 2 2 Engineering Technician 1 1 Public Works Inspector 1 1 Street Maintenance Superintendent 1 1 Maintenance Worker/Senior MW 3 3 Parks Maintenance Superintendent 1 1 Facilities Maintenance Supervisor 1 1 Facilities & Asset Maintenance Tech.1 1 Total:15 15 Total Full-Time Benefitted Positions:56 56 FULL-TIME BENEFITTED PERSONNEL SUMMARY City of Diamond Bar, California 124 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 215 Fiscal Year 2019 - 2020 PARKS AND RECREATION Job Title Authorized Funded Pre-School Teacher 1 1 Assistant Pre-School Teacher 1 1 Total:2 2 Total Part-Time Benefitted Positions:2 2 PART-TIME BENEFITTED PERSONNEL SUMMARY City of Diamond Bar, California 125 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 216 Fiscal Year 2019 - 2020 CITY MANAGER'S OFFICE Job Title Hours Authorized FTE* Administrative Intern **900 0.43 Total:900 0.43 COMMUNITY DEVELOPMENT DEPARTMENT Job Title Hours Authorized FTE * Administrative Intern **900 0.43 Total:900 0.43 PARKS AND RECREATION Job Title Hours Authorized FTE * Facility Attendant I 11,225 5.4 Facility Attendant II 9,104 4.38 Recreation Leader I/II/III 31,976 15.37 Recreation Specialist 1,960 0.94 Recreation Worker 728 0.35 Total:54,993 26.44 PUBLIC WORKS Job Title Hours Authorized FTE * Administrative Intern **900 0.43 Maintenance Worker I/II 1,872 0.9 Total:2,772 1.33 Total Part-Time Non-Benefitted Positions:59,565 28.63 Part-time staff hours are converted to full-time equivalencies (FTEs) - one FTE equals 40 hours per week, 52 weeks per year. Although Administrative Interns are assigned to various departments based upon the needs of the organization, these positions are budgeted out of the City Manger/City Clerk's Office budget. PART-TIME NON-BENEFITTED PERSONNEL SUMMARY City of Diamond Bar, California 126 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 217 City of Diamond Bar, California 127 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 218 FUND TYPE:General Fund FUNCTION: Community Organization Support FUND #011 FUND DESCRIPTION: This fund was established in FY 97-98 to account for transfers and expenditures related to the City Council's policy to support various non profit community organizations which are of a benefit to the City. The City has continued this program to show their ever increasing interest and support of the City's non profit community organizations. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserves $— $— $— $— 39001 Transfer-in General Fund 14,712 20,000 20,000 20,000 TOTAL RESOURCES 14,712 20,000 20,000 20,000 OPERATING EXPENDITURES 4010-42355 Contributions - Com Groups $ 14,712 $ 20,000 $ 20,000 $ 20,000 TOTAL OPERATING EXP $ 14,712 $ 20,000 $ 20,000 $ 20,000 FUND BALANCE RESERVE 25500 Reserves ———— FUND BALANCE RESERVES ———— TOTAL USES $ 14,712 $ 20,000 $ 20,000 $ 20,000 COMMUNITY ORGANIZATION SUPPORT FUND City of Diamond Bar, California 128 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 219 FUND TYPE:General Fund FUNCTION:Public Safety FUND #012 FUND DESCRIPTION: This fund was established in FY12-13 to incorporate a method to fund future increases in the Sheriff's Department contract and the Liability Trust Fund. The primary revenue source in this fund is from annual savings realized in the law enforcement budget in the General Fund. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Unrestricted Fund Balance $ 1,017,944 $ 1,035,310 $ 1,035,310 $ 1,013,310 36100 Investment Earnings 17,366 13,000 13,000 — TOTAL RESOURCES $ 1,035,310 $ 1,048,310 $ 1,048,310 $ 1,013,310 TRANSFERS OUT 9915-49001 Transfer Out - General Fund $— $ 100,000 $ 35,000 $ 100,000 TOTAL TRANSFERS OUT $— $ 100,000 $ 35,000 $ 100,000 FUND BALANCE RESERVE 25500 Reserves $ 1,035,310 $ 948,310 $ 1,013,310 $ 913,310 FUND BALANCE RESERVES $ 1,035,310 $ 948,310 $ 1,013,310 $ 913,310 TOTAL USES $ 1,035,310 $ 1,048,310 $ 1,048,310 $ 1,013,310 LAW ENFORCEMENT RESERVE FUND City of Diamond Bar, California 129 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 220 FUND TYPE:General Fund FUNCTION: General Plan Update FUND #015 FUND DESCRIPTION: This fund was created in FY 14-15 to establish an allocation of resources needed to fund the preparation of a comprehensive update to the City's General Plan. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Unrestricted Fund Balance $ 685,638 $ 411,753 $ 411,753 $ 292,653 36100 Investment Earnings 9,476 8,000 8,000 — 39001 Transfer In - General Fund 33,007 ——— TOTAL RESOURCES $ 728,121 $ 419,753 $ 419,753 $ 292,653 OPERATING SUPPLIES 5210-41200 Operating Supplies $ 113 $ 500 $ 500 $ 500 5210-41400 Promotional Supplies 2,712 2,500 —— TOTAL OPERATING SUPPLIES $ 2,826 $ 3,000 $ 500 $ 500 OPERATING EXPENDITURES 5210-42110 Printing 8,183 10,000 2,000 10,000 5210-42115 Advertising —4,000 —4,000 5210-42120 Postage —4,000 100 500 5210-42325 Meetings 2,590 4,000 200 200 TOTAL OPERATING EXP $ 10,773 $ 22,000 $ 2,300 $ 14,700 PROFESSIONAL SERVICES 5210-44000 Professional Services $ 2,685 $ 3,000 $ 4,300 $ 3,500 5210-44220 PS - Planning General Plan 300,085 381,332 120,000 250,000 TOTAL PROFESSIONAL SERVICES $ 302,770 $ 384,332 $ 124,300 $ 253,500 FUND BALANCE RESERVE 25500 Reserves $ 411,753 $ 10,420 $ 292,653 $ 23,953 FUND BALANCE RESERVES $ 411,753 $ 10,420 $ 292,653 $ 23,953 TOTAL USES $ 728,121 $ 419,753 $ 419,753 $ 292,653 GENERAL PLAN UPDATE FUND City of Diamond Bar, California 130 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 221 FUND TYPE:General Fund FUNCTION: Technology Reserve FUND #018 FUND DESCRIPTION: This fund was created in FY 15-16 to establish an allocation of resources needed to fund the future replacement of a variety of hardware and software platforms throughout the City. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Unrestricted Fund Balance $ 302,906 $ 391,898 $ 391,898 $ 1,500 34305 Permit System Replacemnt ———36,000 36100 Investment Earnings 5,168 3,000 4,500 — 39001 Transfer In - General Fund 100,000 ——— TOTAL RESOURCES $ 408,074 $ 394,898 $ 396,398 $ 37,500 TRANSFERS OUT 9915-49530 Transfer Out - Maint & Repl $ 16,176 $ 394,898 $ 394,898 $— TOTAL TRANSFERS OUT $ 16,176 $ 394,898 $ 394,898 $— FUND BALANCE RESERVE 25500 Reserves $ 391,898 $— $ 1,500 $ 37,500 FUND BALANCE RESERVES $ 391,898 $— $ 1,500 $ 37,500 TOTAL USES $ 408,074 $ 394,898 $ 396,398 $ 37,500 TECHNOLOGY RESERVE FUND City of Diamond Bar, California 131 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 222 FUND TYPE:General Fund FUNCTION:OPEB Fund FUND #020 FUND DESCRIPTION: This fund was created in FY 14-15 to establish an allocation of resources needed to fund the Other Post Employment Benefits (OPEB) unfunded liability. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Unrestricted Fund Balance $ 446,625 $ 355,743 $ 355,743 $ 258,613 36100 Investment Earnings 7,419 5,500 5,500 — 36950 Cost Reimbursements ———— TOTAL RESOURCES $ 454,044 $ 376,743 $ 361,243 $ 258,613 PERSONNEL SERVICES 4060-40086 Post Retirement Benefits $ 13,710 $ 15,500 $ 15,500 $ 20,000 TOTAL PERSONNEL SERVICES $ 13,710 $ 15,500 $ 15,500 $ 20,000 TRANSFERS OUT 9915-49620 Contribution To - OPEB Trust $ 84,591 $ 86,600 $ 87,130 $ 88,000 TOTAL TRANSFERS OUT $ 84,591 $ 86,600 $ 87,130 $ 88,000 FUND BALANCE RESERVE 25500 Reserves $ 355,743 $ 274,643 $ 258,613 $ 150,613 FUND BALANCE RESERVES $ 355,743 $ 274,643 $ 258,613 $ 150,613 TOTAL USES $ 454,044 $ 376,743 $ 361,243 $ 258,613 OTHER POST EMPLOYMENT BENEFITS (OPEB) RESERVE FUND City of Diamond Bar, California 132 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 223 City of Diamond Bar, California 133 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 224 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:107 FUND DESCRIPTION: Approved by the voters on November 6, 2018, the Measure W parcel tax of 2.5 cents a square foot of impermeable space", will fund projects that will improve water quality. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ — $— $— $— 31327 Measure W Revenue ——— 900,000 TOTAL RESOURCES $ — $— $— $ 900,000 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ — $— $— $ 453,000 TOTAL TRANSFERS OUT $ — $— $— $ 453,000 FUND BALANCE RESERVES 25500 Reserves $ — $— $— $ 447,000 FUND BALANCE RESERVES $ — $— $— $ 447,000 TOTAL USES $ — $— $— $ 900,000 MEASURE W FUND City of Diamond Bar, California 134 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 225 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:108 FUND DESCRIPTION: Senate Bill 1 (SB-1), the Road Repair and Accountability Act of 2017 was signed into law in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide. SB-1 prioritizes funding towards maintenance, rehabilitation and safety improvements on state highways, local streets and roads, and bridges, and to improve the State's trade corridors, transit and active transportation facilities. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $— $ 335,136 $ 335,136 $ 1,181,511 31732 Road Maint Rehab Acct 334,381 911,144 908,875 944,348 36100 Investment Earnings $ 754 $ 7,500 $7,500 $ 8,000 TOTAL RESOURCES $ 335,136 $ 1,253,780 $ 1,251,511 $ 2,133,859 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $— $ 1,276,811 $ 70,000 $ 1,806,811 TOTAL TRANSFERS OUT — 1,276,811 70,000 1,806,811 FUND BALANCE RESERVES 25500 Reserves $ 335,136 $ (23,031) $ 1,181,511 $ 327,048 FUND BALANCE RESERVES $ 335,136 $ (23,031) $ 1,181,511 $ 327,048 TOTAL USES $ 335,136 $ 1,253,780 $ 1,251,511 $ 2,133,859 ROAD MAINTEANCE & REHABILITATION FUND City of Diamond Bar, California 135 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 226 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:109 FUND DESCRIPTION: Approved by the voters on November 8, 2016, the Measure M half-cent sales tax increase will fund projects that will improve local streets, repair potholes and improve traffic flow/safety. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ — $ 217,420 $ 217,420 $ 371,042 31323 Measure M Revenue 599,463 787,501 787,501 817,913 36100 Investment Earnings 3,374 7,000 7,000 7,500 TOTAL RESOURCES $ 602,837 $ 1,011,921 $ 1,011,921 $ 1,196,455 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 385,417 $ 977,850 $ 640,879 $ 1,152,691 TOTAL TRANSFERS OUT $ 385,417 $ 977,850 $ 640,879 $ 1,152,691 FUND BALANCE RESERVES 25500 Reserves $ 217,420 $ 34,071 $ 371,042 $ 43,764 FUND BALANCE RESERVES $ 217,420 $ 34,071 $ 371,042 $ 43,764 TOTAL USES $ 602,837 $ 1,011,921 $ 1,011,921 $ 1,196,455 MEASURE M FUND City of Diamond Bar, California 136 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 227 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:110 FUND DESCRIPTION: The Measure R Local Return program funds are to be used for major street resurfacing, rehabilitation, and reconstruction; pothole repair; left turn signals; bikeways; pedestrian improvements; streetscapes; signal synchronization; & transit. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 680,953 $ 63,393 $ 63,393 $ (6,774) 31325 Measure R Revenue 661,492 694,868 694,868 721,766 36100 Investment Earnings 3,155 4,500 4,500 4,500 TOTAL RESOURCES $ 1,345,600 $ 762,761 $ 762,761 $ 719,492 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 1,282,207 $ 769,535 $ 769,535 $ 719,492 TOTAL TRANSFERS OUT $ 1,282,207 $ 769,535 $ 769,535 $ 719,492 FUND BALANCE RESERVES 25500 Reserves $ 63,393 $ (6,774) $ (6,774) $— FUND BALANCE RESERVES $ 63,393 $ (6,774) $ (6,774) $— TOTAL USES $ 1,345,600 $ 762,761 $ 762,761 $ 719,492 MEASURE R FUND City of Diamond Bar, California 137 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 228 DEPARTMENT: Special Revenue DIVISION: Street Maintenance/ Construction FUND #:111 FUND DESCRIPTION: The City receives funds from Sections 2105, 2106, 2107, and 2107.5 of the Streets and Highway Code. State law requires that these revenues be recorded in a Special Revenue Fund, and that they be utilized solely for street related purposes such as new construction, rehabilitation or maintenance. It is anticipated that the City will use Gas Tax Funds to fund ongoing street maintenance programs to the extent possible. Any remaining funds will be used to assist in the funding of the City's Capital Improvement Project Program. Beginning in 2011-12, the State replaced Prop 42 funds with Gas Tax funds. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $2,423 $72,222 $72,222 $72,986 31705 Gas Tax - 2105 309,678 321,585 319,145 319,117 31710 Gas Tax - 2106 190,781 194,703 193,232 193,215 31720 Gas Tax - 2107 403,027 422,357 416,830 416,792 31730 Gas Tax - 2107.5 7,500 7,500 7,500 7,500 31731 HUTA - Prop 42 Replacement 222,229 203,825 210,757 494,893 31734 Loan Repayment 64,874 64,874 64,798 64,798 36100 Interest Revenue 2,033 2,500 2,500 2,000 TOTAL RESOURCES $1,202,546 $1,289,566 $1,286,984 $1,571,301 TRANSFERS OUT 9915-49001 Transfer to General Fund $939,088 $757,122 $757,122 $1,001,782 9915-49250 Transfer to CIP Fund 191,236 532,444 456,876 471,039 TOTAL TRANSFERS OUT $1,130,324 $1,289,566 $1,213,998 $1,472,821 FUND BALANCE RESERVES 25500 Reserves $72,222 $—$72,986 $98,480 FUND BALANCE RESERVES $72,222 $—$72,986 $98,480 TOTAL USES $1,202,546 $1,289,566 $1,286,984 $1,571,301 GAS TAX FUND City of Diamond Bar, California 138 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 229 DEPARTMENT: Special Revenue DIVISION: Public Transportation FUND #:112 FUND DESCRIPTION: The City receives Proposition A Transit Tax which is a voter approved sales tax override for public transportation purposes. This fund has been established to account for these revenues and approved project expenditures. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 466,006 $ 1,073,300 $ 1,073,300 $ 397,467 31310 Transportation Tax 1,064,747 1,116,939 1,116,939 1,160,074 34850 Transit Subsidy Program Rev 767,659 925,000 707,600 744,000 36100 Interest Revenue 14,331 10,000 10,000 12,500 TOTAL RESOURCES $ 2,312,743 $ 3,125,239 $ 2,907,839 $ 2,314,041 PERSONNEL SERVICES 5553-40010 Salaries $ 103,978 $ 102,819 $102,819 $ 107,325 5553-40070 City Paid Benefits 1,156 1,722 1,722 1,625 5553-40080 Classic Member Retirement 19,693 15,671 15,671 17,435 5553-40081 Classic Member - UAL Pmt —5,495 5,557 11,257 5553-40082 PEPRA Member Retirement —9 217 204 5553-40083 Workers Comp Expense 1,417 903 903 1,017 5553-40084 Short/Long Term Disability 582 622 622 653 5553-40085 Medicare Expense 1,638 1,723 1,723 1,572 5553-40090 Cafeteria Benefits 17,852 22,468 22,468 23,490 TOTAL PERSONNEL $ 146,316 $ 151,432 $151,702 $ 164,577 OPERATING SUPPLIES 5553-41200 Supplies $ 1,180 $1,200 $1,200 $1,200 TOTAL OPERATING SUPPLIES $ 1,180 $1,200 $1,200 $1,200 OPERATING EXPENDITURES 5553-42128 Bank Charges $ 11,931 $ 15,000 $15,000 $15,000 5553-42205 Computer Maintenance —2,100 2,100 8,100 5553-42315 Membership & Dues 19,491 20,000 20,000 20,000 TOTAL OPERATING EXP $ 31,422 $ 37,100 $37,100 $43,100 CONTRACT SERVICES 5350-45310 CS - Excursions $ 62,582 $ 70,250 $70,250 $64,550 5553-45529 CS - Dial-A-Cab Services —100,000 100,000 350,000 5553-45533 Transit Subsidy Program 203,828 231,250 176,900 200,000 5553-45535 Transit Subsidy-Fares 781,022 925,000 707,600 800,000 TOTAL CONTRACT SERVICES $ 1,047,432 $ 1,326,500 $ 1,054,750 $ 1,414,550 CAPITAL OUTLAY 5553-46230 Computer Equip-Hardware $— $ 17,000 $17,000 $20,000 5553-46235 Computer Equip-Software —15,000 15,000 10,000 TOTAL CAPITAL OUTLAY $— $ 32,000 $32,000 $30,000 MISC EXPENDITURES 5553-47230 Sale of Prop A Funds $— $ 1,200,000 $ 1,200,000 $— TOTAL MISC EXPENDITURES $— $ 1,200,000 $ 1,200,000 $— TRANSFERS OUT 9915-49250 Transfer Out - CIP Fund $ 13,092 $ 311,722 $33,620 $ 378,102 TOTAL TRANSFERS OUT $ 13,092 $ 311,722 $33,620 $ 378,102 FUND BALANCE RESERVES 25500 Reserves $ 1,073,300 $ 65,285 $397,467 $ 282,512 FUND BALANCE RESERVES $ 1,073,300 $ 65,285 $397,467 $ 282,512 TOTAL USES $ 2,312,743 $ 3,125,239 $ 2,907,839 $ 2,314,041 PROPOSITION A FUND City of Diamond Bar, California 139 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 230 DEPARTMENT: Special Revenue DIVISION: Street Maintenance/ Construction FUND #:113 FUND DESCRIPTION: The City receives Proposition C Tax which is additional allocations of State Gas Tax funds from Los Angeles County. These funds must be used for street-related purposes such as construction, rehabilitation, maintenance or traffic safety. The projects must be transit related improvements. In order to spend these funds, the City must submit the project to the County for prior approval. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 678,682 $ 729,278 $ 729,278 $ 877,333 31320 Transportation Tax 879,898 926,471 926,471 962,251 36100 Interest Revenue 12,661 10,500 10,500 12,500 TOTAL RESOURCES $ 1,571,241 $ 1,666,249 $ 1,666,249 $ 1,852,084 PERSONNEL SERVICES 5553-40010 Salaries $ 79,853 $ 146,303 $ 146,303 $ 125,220 5553-40070 City Paid Benefits 627 1,677 1,677 1,175 5553-40080 Classic Member Retirement 18,103 22,362 22,362 13,375 5553-40081 Classic Member - UAL Pmt —7,925 7,929 8,843 5553-40082 PEPRA Member Retirement —5 108 3,186 5553-40083 Workers Comp Expense 1,290 2,728 2,728 2,384 5553-40084 Short/Long Term Disability 401 872 872 765 5553-40085 Medicare Expense 1,132 2,192 2,192 1,824 5553-40090 Benefit Allotment 9,451 21,969 21,969 20,697 TOTAL PERSONNEL $ 110,857 $ 206,033 $ 206,140 $ 177,468 OPERATING EXPENDITURES 5553-42205 Computer Maintenance $ 6,000 $ 6,000 $6,000 $ 26,000 TOTAL OPERATING EXP $6,000 $6,000 $6,000 $26,000 CONTRACT SERVICES 5553-45222 CS - Traffic $— $— $— $ 60,000 5553-45507 CS - Traffic Signal Maintenance ———185,000 5553-45529 Para -Transit Dial a Cab 310,435 250,000 250,000 — TOTAL CONTRACT SERVICES $ 310,435 $ 250,000 $ 250,000 $ 245,000 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 414,671 $ 829,495 $ 326,776 $ 883,031 TOTAL TRANSFERS OUT $ 414,671 $ 829,495 $ 326,776 $ 883,031 FUND BALANCE RESERVES 25500 Reserves $ 729,278 $ 374,721 $ 877,333 $ 520,584 FUND BALANCE RESERVES $ 729,278 $ 374,721 $ 877,333 $ 520,584 TOTAL USES $ 1,571,241 $ 1,666,249 $ 1,666,249 $ 1,852,084 PROPOSITION C FUND City of Diamond Bar, California 140 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 231 DEPARTMENT: Special Revenue DIVISION: Waste Management FUND #:115 FUND DESCRIPTION: The Integrated Waste Management Fund was created during FY90-91, to account for expenditures and revenues related to the activities involved with the City's efforts to comply with AB939. Revenues recorded in this fund are the adopted waste hauler fees and funds received from the State for recycling education and efforts. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $1,170,472 $1,204,605 $1,204,605 $1,278,463 34820 AB939 Admin Fees 552,706 547,000 547,000 562,000 36950 Cost Reimbursement 6,735 —17,000 91,470 TOTAL RESOURCES $1,729,912 $1,751,605 $1,768,605 $1,931,933 PERSONNEL SERVICES 5515-40010 Salaries $284,924 $197,105 $197,105 $214,417 5515-40020 Over-Time Wages 847 2,000 2,000 2,000 5515-40030 Part Time Wages 902 2,000 —1,000 5515-40070 City Paid Benefits 3,246 2,646 2,646 2,414 5515-40080 Classic Member Retirement 54,004 29,617 29,617 32,855 5515-40081 Classic Member - UAL Pmt —10,505 10,509 21,330 5515-40082 PEPRA Member Retirement 4 412 558 1,021 5515-40083 Worker's Comp. Exp.3,933 3,647 3,647 3,811 5515-40084 Short/Long Term Disability 1,554 1,187 1,187 1,282 5515-40085 Medicare 4,401 3,202 3,202 3,148 5515-40090 Benefit Allotment 40,966 34,578 34,578 34,592 TOTAL PERSONNEL $394,782 $286,899 $285,049 $317,871 SUPPLIES 5515-41200 Operating Supplies $15,696 $19,500 $19,500 $20,500 5515-41300 Small Tools & Equipment 8,960 29,294 25,293 16,000 5515-41400 Promotional Supplies 12,035 17,500 17,500 21,500 TOTAL SUPPLIES $36,691 $66,294 $62,293 $58,000 OPERATING EXPENDITURES 5515-42110 Printing $3,749 $15,000 $12,000 $12,000 5515-42115 Advertising 3,100 3,000 3,000 3,000 5515-42120 Postage 3 4,000 4,000 4,000 5515-42315 Membership/Dues 487 700 500 500 5515-42320 Publications 11 200 200 200 5515-42325 Meetings 75 1,000 300 500 5515-42330 Travel-Conferences & Meetings 15 2,000 —— 5515-42340 Education & Training 267 1,000 500 1,000 TOTAL OPERATING EXP $7,707 $26,900 $20,500 $21,200 INTEGRATED WASTE MANAGEMENT FUND City of Diamond Bar, California 141 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 232 DEPARTMENT: Special Revenue DIVISION: Waste Management FUND #:115 PROFESSIONAL SERVICES 5515-44000 Professional Services $28,104 $71,600 $49,600 $134,600 TOTAL PROFESSIONAL SERVICES $28,104 $71,600 $49,600 $134,600 CONTRACT SERVICES 5515-45500 CS - Professional Services $26,364 $31,500 $31,500 $35,600 TOTAL CONTRACT SERVICES $26,364 $31,500 $31,500 $35,600 CAPITAL OUTLAY 5515-46250 Miscellaneous Equipment $—$30,000 $30,000 $20,000 TOTAL CAPITAL OUTLAY $—$30,000 $30,000 $20,000 INSURANCE EXPENSE 5515-47220 Insurance Expense $1,659 $2,500 $1,200 $2,500 TOTAL INSURANCE EXPENSE $1,659 $2,500 $1,200 $2,500 TRANSFERS OUT 9915-49001 Transfer Out - General Fund $30,000 $10,000 $10,000 $10,000 TOTAL TRANSFERS OUT $30,000 $10,000 $10,000 $10,000 FUND BALANCE RESERVES 25500 Reserves $1,204,605 $1,225,912 $1,278,463 $1,332,162 FUND BALANCE RESERVES $1,204,605 $1,225,912 $1,278,463 $1,332,162 TOTAL USES $1,729,912 $1,751,605 $1,768,605 $1,931,933 INTEGRATED WASTE MANAGEMENT FUND City of Diamond Bar, California 142 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 233 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:116 FUND DESCRIPTION: The Traffic Mitigation Fund is used to account for funds which have been received from development projects and designated by the City Council for traffic mitigation projects. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 1,000,504 $ 483,646 $ 483,646 $ 6,957,013 31331 Federal STPL Revenue 8,417 ——— 34660 Traffic Mitigation Fees - Eng 73,214 —6,543,657 — 36100 Investment Earnings 13,744 8,000 8,000 8,000 TOTAL RESOURCES $ 1,095,880 $ 491,646 $ 7,035,303 $ 6,965,013 TRANSFERS OUT 9915-49133 Transfer to CASP Fund $ 2,039 $— $— $— 9915-49250 Transfer to CIP Fund 610,195 158,067 78,290 110,000 TOTAL TRANSFERS OUT $ 612,234 $ 158,067 $ 78,290 $ 110,000 FUND BALANCE RESERVES 25500 Reserves $ 483,646 $ 333,579 $ 6,957,013 $ 6,855,013 FUND BALANCE RESERVES $ 483,646 $ 333,579 $ 6,957,013 $ 6,855,013 TOTAL USES $ 1,095,880 $ 491,646 $ 7,035,303 $ 6,965,013 TRAFFIC MITIGATION FUND City of Diamond Bar, California 143 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 234 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:117 FUND DESCRIPTION: This fund was established in FY 14-15 as a result of Developer Impacts to existing sewer facilities in the City. The fund will be used to account for funds which have been received from development projects and designated by the City Council for sewer facility mitigation/improvement projects. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 111,097 $ 112,992 $ 112,992 $ 66,579 36100 Investment Earnings 1,895 2,000 2,000 2,000 TOTAL RESOURCES $ 112,992 $ 114,992 $ 114,992 $ 68,579 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $— $ 64,551 $ 48,413 $ 16,138 TOTAL TRANSFERS OUT $— $ 64,551 $ 48,413 $ 16,138 FUND BALANCE RESERVES 25500 Reserves $ 112,992 $ 50,441 $ 66,579 $ 52,441 FUND BALANCE RESERVES $ 112,992 $ 50,441 $ 66,579 $ 52,441 TOTAL USES $ 112,992 $ 114,992 $ 114,992 $ 68,579 SEWER MITIGATION FUND City of Diamond Bar, California 144 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 235 DEPARTMENT: Special Revenue DIVISION:Air Quality FUND #:118 FUND DESCRIPTION: This fund was established in FY91-92 to account for revenues received as a result of AB2766 which authorized the imposition of an additional motor vehicle registration fee to fund the implementation of air quality management compliance and provisions of the California Clean Air Act of 1988. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 184,074 $ 139,290 $ 139,290 $ 90,545 31810 Pollution Reduction Fees 73,140 70,000 70,000 73,000 36100 Interest Revenue 1,782 3,000 1,500 1,500 TOTAL RESOURCES $ 258,995 $ 212,290 $ 210,790 $ 165,045 CAPITAL OUTLAY 5098-46100 Auto Equipment $— $ 56,000 $ 54,300 $ 21,000 5098-46412 Traffic Control Improvement —68,545 8698 30,000 TOTAL CAPITAL OUTLAY $— $ 124,545 $ 62,998 $ 51,000 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 119,705 $ 74,195 $ 57,247 $ 16,948 TOTAL TRANSFERS OUT $ 119,705 $ 74,195 $ 57,247 $ 16,948 FUND BALANCE RESERVES 25500 Reserves $ 139,290 $ 13,550 $ 90,545 $ 97,097 FUND BALANCE RESERVES $ 139,290 $ 13,550 $ 90,545 $ 97,097 TOTAL USES $ 258,995 $ 212,290 $ 210,790 $ 165,045 AIR QUALITY IMPROVEMENT FUND City of Diamond Bar, California 145 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 236 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:119 FUND DESCRIPTION: The State allocates funds to cities for the specific purpose of the construction of bike and pedestrian paths via SB821. This fund has been established to account for transactions related to the receipt and expenditure of these funds. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $— $— $— $— 31880 SB821 Revenue 37,525 157,338 22,419 151,298 TOTAL RESOURCES $ 37,525 $ 157,338 $ 22,419 $ 151,298 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 37,525 $ 132,337 $ 22,419 $ 109,918 TOTAL TRANSFERS OUT $ 37,525 $ 132,337 $ 22,419 $ 109,918 FUND BALANCE RESERVES 25500 Reserves $— $ 25,001 $— $ 41,380 FUND BALANCE RESERVES $— $ 25,001 $— $ 41,380 TOTAL USES $ 37,525 $ 157,338 $ 22,419 $ 151,298 SB 821 FUND - BIKE AND PEDESTRIAN PATHS (TDA) City of Diamond Bar, California 146 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 237 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:120 FUND DESCRIPTION: The Los Angeles County Metropolitan Transportation Authority (Metro) Call for Projects allocates discretionary transportation capital funds for regionally significant projects proposed by local jurisdictions, Caltrans, and other public agencies. The Call is a competitive grant process that is typically held biannually in odd-numbered years. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Reserve $33 $— $— $— 31332 MTA Grant Revenue 66,277 1,289,418 511,520 777,898 36100 Investment Earnings 54 ——— TOTAL RESOURCES $ 66,364 $ 1,289,418 $ 511,520 $ 777,898 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 66,364 $ 1,289,418 $ 511,520 $ 777,898 TOTAL TRANSFERS OUT $ 66,364 $ 1,289,418 $ 511,520 $ 777,898 FUND BALANCE RESERVES 25500 Reserves $— $— $— $— FUND BALANCE RESERVES $— $— $— $— TOTAL USES $ 66,364 $ 1,289,418 $ 511,520 $ 777,898 MTA GRANTS FUND City of Diamond Bar, California 147 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 238 DEPARTMENT: Special Revenue DIVISION: Street/Paths Improvements FUND #:121 FUND DESCRIPTION: The Waste Hauler Fund was established in FY 2013-14. These funds are received from the City's Waste Hauler in order to mitigate damage to City streets by large trash trucks. Previously these funds were recognized in the General Fund. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 88,878 $ 79,725 $ 79,725 $469 34662 Solid Waste Impact Fees 124,001 130,000 132,000 136,000 36100 Investment Earnings 924 1,000 2,000 1,000 TOTAL RESOURCES $ 213,803 $ 210,725 $ 213,725 $ 137,469 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 134,079 $ 213,256 $ 213,256 $ 134,469 TOTAL TRANSFERS OUT $ 134,079 $ 213,256 $ 213,256 $ 134,469 FUND BALANCE RESERVES 25500 Reserves $ 79,725 $ (2,531) $469 $ 3,000 FUND BALANCE RESERVES $ 79,725 $ (2,531) $469 $ 3,000 TOTAL USES $ 213,803 $ 210,725 $ 213,725 $ 137,469 WASTE HAULER FUND City of Diamond Bar, California 148 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 239 DEPARTMENT: Special Revenue DIVISION: Park Improvement FUND #:122 FUND DESCRIPTION: Within the California Subdivision Map Act is a requirement that developers either contribute land or pay fees to the local municipal government to provide recreational facilities within the development area. This fund is used to account for the fees received. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $496,567 $258,410 $258,410 $107,663 36100 Interest Revenue 6,028 5,000 5,000 3,500 TOTAL RESOURCES $502,595 $263,410 $263,410 $111,163 TRANSFERS OUT 9915-49250 Transfer Out - CIP $244,186 $237,210 $155,747 $36,250 TOTAL TRANSFERS OUT $244,186 $237,210 $155,747 $36,250 FUND BALANCE RESERVES 25500 Reserves $258,410 $26,200 $107,663 $74,913 FUND BALANCE RESERVES $258,410 $26,200 $107,663 $74,913 TOTAL USES $502,595 $263,410 $263,410 $111,163 PARK FEES FUND (QUIMBY) City of Diamond Bar, California 149 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 240 DEPARTMENT: Special Revenue DIVISION: Park Improvement FUND #:123 FUND DESCRIPTION: The County allocates voter approved funds to the City for the purpose of creating and maintaining an environment which addresses the needs of the City's at risk youth. This FY funds are being used toward the implementation of the youth master plan and the construction of improvements at Stardust Park. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $— $738 $738 $ 41,538 31815 Prop A-Safe Neighborhood Parks 35,000 50,000 90,000 — 36100 Investment Earnings 738 —800 — TOTAL RESOURCES $ 35,738 $ 50,738 $ 91,538 $ 41,538 TRANSFERS OUT 9915-49001 Transfer to General Fund $ 35,000 $ 50,000 $ 50,000 $— TOTAL TRANSFERS OUT $ 35,000 $ 50,000 $ 50,000 $— FUND BALANCE RESERVES 25500 Reserves $ 738 $738 $ 41,538 $ 41,538 FUND BALANCE RESERVES $ 738 $738 $ 41,538 $ 41,538 TOTAL USES $ 35,738 $ 50,738 $ 91,538 $ 41,538 PROP A - SAFE NEIGHBORHOOD PARKS FUND City of Diamond Bar, California 150 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 241 DEPARTMENT: Special Revenue DIVISION: Park Improvement FUND #:124 FUND DESCRIPTION: The purpose of this fund is to provide resources for the development and enhancement of the City's parks and facilities. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 75,804 $ 68,526 $ 68,526 $ 48,722 36100 Interest Revenue 1,262 1,000 1,000 1,000 TOTAL RESOURCES $ 77,066 $ 69,526 $ 69,526 $ 49,722 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 8,540 $ 45,804 $ 20,804 $ 25,000 TOTAL TRANSFERS OUT $ 8,540 $ 45,804 $ 20,804 $ 25,000 FUND BALANCE RESERVES 25500 Reserves $ 68,526 $ 23,722 $ 48,722 $ 24,722 FUND BALANCE RESERVES $ 68,526 $ 23,722 $ 48,722 $ 24,722 TOTAL USES $ 77,066 $ 69,526 $ 69,526 $ 49,722 PARK & FACILITY DEVELOPMENT FUND City of Diamond Bar, California 151 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 242 DEPARTMENT: Special Revenue DIVISION:Community Dev FUND #:125 FUND DESCRIPTION: The City receives an annual CDBG allotment from the federal government via the Community Development Commission. The purpose of this grant is to fund approved community development programs and projects benefiting low and moderate income citizens. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 31630 CDBG Revenue-Carry Over $— $ (1,319) $ (1,319) $ 44,843 31630 CDBG Revenue 363,842 501,416 501,416 273,907 TOTAL RESOURCES $ 363,842 $ 500,097 $ 500,097 $ 318,750 PERSONNEL SERVICES 5350-40010 Salaries $ 14,653 $ 10,644 $ 10,935 $ 24,443 TOTAL PERSONNEL $ 14,653 $ 10,644 $ 10,935 $ 24,443 SUPPLIES 5215-41200 Operating Supplies $ 1,751 $ 2,400 $— $ 2,400 TOTAL SUPPLIES $ 1,751 $ 2,400 $— $ 2,400 PROFESSIONAL SERVICES 5215-44000 Professional Services $ 81,792 $ 117,000 $ 117,000 $ 87,064 TOTAL PROFESSIONAL SERVICES $ 81,792 $ 117,000 $ 117,000 $ 87,064 TRANSFERS OUT 9915-49250 Transfer to CIP Fund $ 266,965 $ 343,732 $ 327,319 $ 160,000 TOTAL TRANSFERS OUT $ 266,965 $ 343,732 $ 327,319 $ 160,000 CDBG Carry Over $ (1,319) $ 26,321 $ 44,843 $ 44,843 FUND BALANCE RESERVES $ (1,319) $ 26,321 $ 44,843 $ 44,843 TOTAL USES $ 363,842 $ 500,097 $ 500,097 $ 318,750 COMMUNITY DEVELOPMENT BLOCK GRANT FUND City of Diamond Bar, California 152 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 243 DEPARTMENT: Special Revenue DIVISION:Public Safety FUND #:126 FUND DESCRIPTION: The purpose of these funds are to enhance the City's public safety budget and to fund special public safety related projects. These funds are used to provide at-risk youth counseling with a majority of the funds being transfered to the General Fund to pay for City's contracted Law Enforcement Technician. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 222,456 $ 221,468 $ 221,468 $ 245,942 31855 Public Safety Grant - State 100,000 100,000 150,000 100,000 36100 Interest Revenue 4,091 4,500 4,500 4,500 TOTAL RESOURCES $ 326,547 $ 325,968 $ 375,968 $ 350,442 PROFESSIONAL SERVICES 4411-44000 Professional Services $ 4,900 $ 5,000 $5,000 $ 5,000 TOTAL PROFESSIONAL SERVICES $ 4,900 $ 5,000 $5,000 $ 5,000 CAPITAL OUTLAY 4411-46250 Misc Equipment $ 4,999 $ 15,000 $ 14,800 $ 5,000 TOTAL CAPITAL OUTLAY $ 4,999 $ 15,000 $ 14,800 $ 5,000 TRANSFERS OUT 9915-49001 Transfer Out-General Fund $ 95,180 $ 110,226 $ 110,226 $ 118,154 TOTAL TRANSFERS OUT $ 95,180 $ 110,226 $ 110,226 $ 118,154 FUND BALANCE RESERVE 25500 Reserves $ 221,468 $ 195,742 $ 245,942 $ 222,288 FUND BALANCE RESERVES $ 221,468 $ 195,742 $ 245,942 $ 222,288 TOTAL USES $ 326,547 $ 325,968 $ 375,968 $ 350,442 CITIZENS OPTION FOR PUBLIC SAFETY FUND City of Diamond Bar, California 153 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 244 DEPARTMENT: Special Revenue DIVISION:Public Safety FUND #:128 FUND DESCRIPTION: During FY1999-2000, the City received California Law Enforcement Equipment Program (CLEEP) from the State. These funds are to be used to enhance equipment resources available to the City's local law enforcement agency. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 21,187 $ 14,284 $ 14,284 $ 14,534 36100 Interest Revenue 297 250 250 200 TOTAL RESOURCES $ 21,484 $ 14,534 $ 14,534 $ 14,734 CAPITAL OUTLAY 4411-46250 Misc Equipment $ 7,199 $ 10,000 $— $ 10,000 TOTAL CAPITAL OUTLAY $ 7,199 $ 10,000 $— $ 10,000 FUND BALANCE RESERVES 25500 Reserves $ 14,284 $ 4,534 $ 14,534 $ 4,734 FUND BALANCE RESERVES $ 14,284 $ 4,534 $ 14,534 $ 4,734 TOTAL USES $ 21,484 $ 14,534 $ 14,534 $ 14,734 CA LAW ENFORCEMENT EQUIPMENT PROGRAM FUND City of Diamond Bar, California 154 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 245 DEPARTMENT: Special Revenue DIVISION: Street Beautification FUND #:131 FUND DESCRIPTION: This fund was established in FY 17-18 as a result of funds received from development projects to be used towards the Diamond Bar Complete Streets improvements as well as other identified capital improvement streetscape or complete streets projects as conditioned by the development projects entitlements. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $— $ 318,439 $ 318,439 $ 392,439 34550 Developer Fees 368,197 70,000 70,000 — 36,100 Investment Earnings 243 —4,000 2,000 TOTAL RESOURCES $ 368,439 $ 388,439 $ 392,439 $ 394,439 TRANSFERS OUT 9915-49250 Transfer to CIP $ 50,000 $— $— $— TOTAL TRANSFERS OUT $ 50,000 $— $— $— FUND BALANCE RESERVES 25500 Reserves $ 318,439 $ 388,439 $ 392,439 $ 394,439 FUND BALANCE RESERVES $ 318,439 $ 388,439 $ 392,439 $ 394,439 TOTAL USES $ 368,439 $ 388,439 $ 392,439 $ 394,439 STREET BEAUTIFICATION City of Diamond Bar, California 155 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 246 DEPARTMENT: Special Revenue DIVISION: Park Improvement FUND #:132 FUND DESCRIPTION: Measure A Neighborhood Parks Act was approved by the voters in November 2016 and provides funds to improve the quality of life throughout Los Angeles County by preserving and protecting parks, safe places to play, community recreation facilities, beaches, rivers, open spaces and water conservation. Measure A funds provide local funding for parks, recreation, trails, cultural facilities, open space and Veteran and youth programs. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $— $— $— $ 46,000 31341 Category 1 Revenue — 190,717 190,717 185,000 31342 M&S Revenue —46,053 46,000 46,000 TOTAL RESOURCES $— $ 236,770 $ 236,717 $ 277,000 TRANSFERS OUT 49250 Transfer Out - CIP Fund $— $ 190,717 $ 190,717 $ 185,000 TOTAL TRANSFERS OUT $— $ 190,717 $ 190,717 $ 185,000 FUND BALANCE RESERVES 25500 Reserves $— $ 46,053 $ 46,000 $ 92,000 FUND BALANCE RESERVES $— $ 46,053 $ 46,000 $ 92,000 TOTAL USES $— $ 236,770 $ 236,717 $ 277,000 MEASURE A NEIGHBORHOOD PARKS ACT City of Diamond Bar, California 156 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 247 DEPARTMENT: Special Revenue DIVISION:Disability Access FUND #:133 FUND DESCRIPTION: SB 1186 requires that a $4 additional fee is to be paid by any applicant seeking a local business license when it is initially issued or renewed. From January 1, 2018 through December 31, 2023, the City will retain 90% of the fees collected. The purpose of the fee is to increase disability access and compliance with construction-related accessibility. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $— $ 6,065 $6,065 $ 14,165 34562 Business License - SB1186 3,946 8,000 8,000 8,000 36100 Investment Earnings 80 —100 100 39116 Transfer In - Traffic Impr Fund 2,039 ——— TOTAL RESOURCES $ 6,065 $ 14,065 $ 14,165 $ 22,265 FUND BALANCE RESERVES 25500 Reserves $ 6,065 $ 14,065 $ 14,165 $ 22,265 FUND BALANCE RESERVES $ 6,065 $ 14,065 $ 14,165 $ 22,265 TOTAL USES $ 6,065 $ 14,065 $ 14,165 $ 22,265 CASP SB1186 City of Diamond Bar, California 157 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 248 DEPARTMENT: Special Revenue DIVISION: Conservation FUND #:134 FUND DESCRIPTION: The Tres Hermanos Conservation Authority Fund was created in 2019 to track the CIty's portion of the maintenance costs related at the Tres Hermanos property and transfers in from the General Fund. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $— $— $— $— 39001 Transfer In - General Fund —55,000 55,000 70,000 TOTAL RESOURCES $— $ 55,000 $ 55,000 $ 70,000 OPERATING EXPENDITURES 42210 Maint. of Grounds/Bldgs $— $ 55,000 $ 55,000 $ 70,000 TOTAL OPERATING EXP $— $ 55,000 $ 55,000 $ 70,000 FUND BALANCE RESERVES 25500 Reserves $— $— $— $— FUND BALANCE RESERVES $— $— $— $— TOTAL USES $— $ 55,000 $ 55,000 $ 70,000 TRES HERMANOS CONSERVATION AUTHORITY FUND City of Diamond Bar, California 158 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 249 DEPARTMENT: Special Revenue DIVISION: Public Information FUND #:135 FUND DESCRIPTION: Public, Educational and Governmental (PEG) fees totaling 1% of gross revenues are remitted to the City by all video service providers with a valid state franchise. In accordance with federal law, PEG fees may be used only for capital expenditures related to the City's operations of its PEG channels. Capital expenditures include equipment, and related labor, software, training and associated warranty costs. Repairs are not considered capital expenditures. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $ 252,471 $ 299,302 $ 299,302 $ 373,302 31215 PEG Fees 104,870 100,000 100,000 100,000 36100 Interest Revenue 4,320 4,000 4,000 4,000 TOTAL RESOURCES $ 361,661 $ 403,302 $ 403,302 $ 477,302 CAPITAL OUTLAY 4095-46250 Miscellaneous Equipment $ 62,359 $ 35,000 $ 30,000 $ 68,700 TOTAL CAPITAL OUTLAY $ 62,359 $ 35,000 $ 30,000 $ 68,700 TRANSFERS OUT 9915-49250 Transfer Out - CIP Fund $— $ 75,000 $— $— TOTAL TRANSFERS OUT $— $ 75,000 $— $— FUND BALANCE RESERVES 25500 Reserves $ 299,302 $ 368,302 $ 373,302 $ 408,602 FUND BALANCE RESERVES $ 299,302 $ 368,302 $ 373,302 $ 408,602 TOTAL USES $ 361,661 $ 403,302 $ 403,302 $ 477,302 PEG FEES FUND City of Diamond Bar, California 159 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 250 DEPARTMENT: Special Revenue DIVISION:Landscape FUND #:138 FUND DESCRIPTION: The City is responsible for the operations of the LLAD #38 which primarily maintains the City's medians. This district was was set up in accordance with the Landscape and Lighting Act of 1972. Property owners benefiting from this district receive a special assessment on their property taxes. This fund accounts for this district's operations. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserves $— $— $— $— 30300 Prop Tax-Special Assessment 267,337 274,170 274,170 276,330 39001 Transfer in - General Fund 146,199 111,215 111,738 60,499 TOTAL RESOURCES $ 413,536 $ 385,385 $ 385,908 $ 336,829 PERSONNEL SERVICES 5538-40010 Salaries $ 24,524 $ 26,467 $ 26,467 $ 27,028 5538-40020 Over Time Wages 371 300 500 400 5538-40070 City Paid Benefits 300 300 300 286 5538-40080 Classic Member Retirement 4,792 3,981 3,981 4,358 5538-40081 Classic Member - UAL Pmt —1,412 1,410 2,814 5538-40083 Worker's Comp. Exp.729 756 756 782 5538-40084 Short/Long Term Disability 149 154 154 159 5538-40085 Medicare 349 389 389 398 5538-40090 Benefit Allotment 3,882 4,032 4,032 4,182 TOTAL PERSONNEL $ 35,096 $ 37,791 $ 37,989 $ 40,406 OPERATING EXPENDITURES 5538-42115 Advertising $ 2,205 $ 5,000 $5,000 $ 5,000 5538-42126 Utilities 144,392 168,000 168,000 176,399 5538-42210 Maint. of Grounds/Bldgs 7,698 46,070 46,070 36,500 TOTAL OPERATING EXP $154,295 $219,070 $219,070 $217,899 PROFESSIONAL SERVICES 5538-44000 Professional Services $ 5,319 $ 5,500 $5,500 $ 5,500 TOTAL PROFESSIONAL SERVICES $ 5,319 $ 5,500 $5,500 $ 5,500 CONTACT SERVICES 5538-45500 Contract Services $ 215,612 $ 116,524 $ 116,524 $ 66,524 5538-45509 Tree Maintenance 3,214 6,500 6,825 6,500 TOTAL CONTRACT SERVICES $ 218,826 $ 123,024 $ 123,349 $ 73,024 FUND BALANCE RESERVE 25500 Reserves $— $— $— $— FUND BALANCE RESERVES $— $— $— $— TOTAL USES $ 413,536 $ 385,385 $ 385,908 $ 336,829 LANDSCAPE MAINTENANCE - DIST. #38 FUND City of Diamond Bar, California 160 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 251 DEPARTMENT: Special Revenue DIVISION:Landscape FUND #:139 FUND DESCRIPTION: The City is responsible for the operations of the LLAD #39. This district was set up in accordance with the Landscape and Lighting Act of 1972. Property owners benefiting from this district receive a special assessment on their property taxes. This fund accounts for this district's operations. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Approp Fund Balance $ 66,810 $— $— $— 30300 Prop Tax-Special Assessment 293,634 294,764 294,764 294,764 39001 Transfer In - General Fund 3,737 253,959 277,957 169,068 TOTAL RESOURCES $ 364,180 $ 548,723 $ 572,721 $ 463,832 PERSONNEL SERVICES 5539-40010 Salaries $ 13,822 $ 14,868 $ 14,868 $ 15,265 5539-40020 Over Time Wages 371 300 500 400 5539-40070 City Paid Benefits 180 180 180 172 5539-40080 Classic Member Retirement 2,697 2,249 2,249 2,475 5539-40081 Classic Member - UAL Pmt —797 795 1,598 5539-40083 Worker's Comp. Exp.414 427 427 444 5539-40084 Short/Long Term Disability 84 87 87 90 5539-40085 Medicare 203 221 221 225 5539-40090 Benefit Allotment 2,322 2,412 2,412 2,502 TOTAL PERSONNEL $ 20,093 $ 21,541 $ 21,739 $ 23,170 OPERATING EXPENDITURES 5539-42115 Advertising $ 2,205 $ 5,000 $5,000 $ 5,000 5539-42126 Utilities 106,522 133,035 133,035 139,686 5539-42210 Maint. of Grounds/Bldgs 21,566 42,871 42,871 34,500 TOTAL OPERATING EXP $130,292 $180,906 $180,906 $179,186 PROFESSIONAL SERVICES 5539-44000 Professional Services $ 5,319 $ 5,500 $ 29,300 $ 5,500 TOTAL PROFESSIONAL SERVICES $ 5,319 $ 5,500 $ 29,300 $ 5,500 CONTACT SERVICES 5539-45500 Contract Services $ 208,476 $ 208,476 $ 208,476 $ 208,476 5539-45509 Tree Maintenance —95,400 95,400 6,500 5539-45519 Weed Abatement —36,900 36,900 41,000 TOTAL CONTRACT SERVICES $ 208,476 $ 340,776 $ 340,776 $ 255,976 FUND BALANCE RESERVE 25500 Reserves $— $— $— $— FUND BALANCE RESERVES $— $— $— $— TOTAL USES $ 344,087 $ 527,182 $ 550,982 $ 463,832 LANDSCAPE MAINTENANCE - DIST. #39 FUND City of Diamond Bar, California 161 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 252 DEPARTMENT: Special Revenue DIVISION:Landscape FUND #:141 FUND DESCRIPTION: The City is responsible for the operations of the LLAD #41. This district was set up in accordance with the Landscape and Lighting Act of 1972. Property owners benefiting from this district receive a special assessment on their property taxes. This fund is to account for the cost of the operations of this special district. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserves $— $— $— $— 30300 Prop Tax-Special Assessment 123,130 122,157 122,157 122,157 39001 Transfer in - General Fund 84,865 149,138 172,138 199,501 TOTAL RESOURCES $ 207,995 $ 271,295 $ 294,295 $ 321,658 PERSONNEL SERVICES 5541-40010 Salaries $ 11,950 $ 14,868 $ 14,868 $ 15,265 5541-40020 Over Time Wages 148 200 400 400 5541-40070 City Paid Benefits 144 180 180 172 5541-40080 Classic Member Retirement 2,336 2,249 2,249 2,475 5541-40083 Worker's Comp. Exp.362 427 427 444 5541-40084 Short/Long Term Disability 73 87 87 90 5541-40085 Medicare 169 221 221 225 5541-40090 Benefit Allotment 1,865 2,412 2,412 2,502 TOTAL PERSONNEL $ 17,046 $ 21,441 $ 21,641 $ 23,170 OPERATING EXPENDITURES 5541-42115 Advertising $ 1,680 $ 5,000 $5,000 $ 5,000 5541-42126 Utilities 61,309 71,138 71,138 74,694 5541-42210 Maint. of Grounds/Bldgs —25,000 25,000 20,000 TOTAL OPERATING EXP $ 62,989 $ 101,138 $ 101,138 $ 99,694 PROFESSIONAL SERVICES 5541-44000 Professional Services $ 5,319 $ 9,500 $ 32,300 $ 5,500 TOTAL PROFESSIONAL SERVICES $ 5,319 $ 9,500 $ 32,300 $ 5,500 CONTACT SERVICES 5541-45500 Contract Services $ 68,430 $ 68,076 $ 68,076 $ 68,076 5541-45509 Tree Maintenance 18,000 ——71,000 5541-45519 CS-Weed/Pest Abatement 36,211 71,140 71,140 54,218 TOTAL CONTRACT SERVICES $ 122,641 $ 139,216 $ 139,216 $ 193,294 FUND BALANCE RESERVE 25500 Reserves $— $— $— $— FUND BALANCE RESERVES $— $— $— $— TOTAL USES $ 190,949 $ 249,854 $ 272,654 $ 321,658 LANDSCAPE MAINTENANCE - DIST. # 41 FUND City of Diamond Bar, California 162 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 253 DEPARTMENT: Special Revenue DIVISION:Grant Fund FUND #:160 FUND DESCRIPTION: The Department of Resources Recycling and Recovery (CalRecycle) administers the annual Used Oil Payment Program (OPP) grant program to provide cities with the opportunity to offer used oil recycling and disposal programs. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserves $17,292 $16,486 $16,486 $16,486 31870 Used Motor Oil Block Grant 15,496 15,700 15,700 15,800 36100 Interest Revenue 305 300 —— TOTAL RESOURCES $33,093 $32,486 $32,186 $32,286 SUPPLIES 5516-41200 Operating Supplies $3,484 $3,000 $3,000 $3,000 5516-41300 Small Tools and Equipment 5,819 6,000 6,000 6,000 TOTAL SUPPLIES $9,302 $9,000 $9,000 $9,000 OPERATING EXPENDITURES 5516-42110 Printing $1,200 $1,000 $1,000 $400 5516-42115 Advertising 1,400 900 900 2,000 5516-42120 Postage 2,700 2,000 2,000 1,500 TOTAL OPERATING EXP $5,300 $3,900 $3,900 $3,900 PROFESSIONAL SERVICES 5516-44000 Professional Services $1,460 $2,800 $2,800 $3,000 TOTAL PROFESSIONAL SERVICES $1,460 $2,800 $2,800 $3,000 CONTRACT SERVICES 5516-45500 Contract Services $545 $—$—$— TOTAL CONTRACT SERVICES $545 $—$—$— FUND BALANCE RESERVE 25500 Reserves $16,486 $16,786 $16,486 $16,386 FUND BALANCE RESERVES $16,486 $16,786 $16,486 $16,386 TOTAL USES $33,093 $32,486 $32,186 $32,286 USED OIL BLOCK GRANT FUND City of Diamond Bar, California 163 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 254 DEPARTMENT: Special Revenue DIVISION:Grant Fund FUND #:161 FUND DESCRIPTION: The Department of Resources Recycling and Recovery (CalRecycle) administers this annual grant program to provide cities with the opportunity to offer beverage container recycling programs, including aluminum, glass, plastic and bi-metal. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Approp Fund Balance $54,044 $53,264 $53,264 $54,016 31875 Beverage Container Grant 14,409 14,409 14,562 14,562 36100 Interest Revenue 818 600 600 600 TOTAL RESOURCES $69,271 $68,273 $68,426 $69,178 OPERATING EXPENDITURES 5516-41200 Supplies $9,421 $8,410 $8,410 $— 5516-41300 Small Tools & Equipment ———37,000 5516-42110 Printing 1,200 1,000 1,000 — 5516-42115 Advertising 1,400 3,000 3,000 — 5516-42120 Postage 3,987 1,000 1,000 — TOTAL OPERATING EXP $16,008 $13,410 $13,410 $37,000 PROFESSIONAL SERVICES 5516-44000 Professional Services $—$1,000 $1,000 $— TOTAL PROFESSIONAL SERVICES $—$1,000 $1,000 $— FUND BALANCE RESERVE 25500 Reserves $53,264 $53,863 $54,016 $32,178 FUND BALANCE RESERVES $53,264 $53,863 $54,016 $32,178 TOTAL USES $69,271 $68,273 $68,426 $69,178 BEVERAGE CONTAINER RECYCLING GRANT FUND City of Diamond Bar, California 164 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 255 CityofDiamond Bar, California 165 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 256 Project #Project Description Status Total Budget 108) RMRA 109) Measure M 110) Measure R Local Return 111) Gas Tax 113) Prop C 121) Hauler Fees 125) CDBG Street Improvement Projects (250-5510-46411) 01419 Residential and Collector Street Rehab.- Area 7 (Construction)New $1,700,000 $—$420,000 $719,492 $426,039 $—$134,469 $— 23919 * Arterial Street Rehab (DBB from Mountain Laurel to Clear Creek Cyn) Const.) Carryover - In Design 630,000 330,000 — — — 300,000 — — 01420 Residential and Collector Street Rehab.- Area 1a, 1b, 2 (Design) Arterial Street Rehab (Design) DBB from Pathfinder to Mountain Laurel) Golden Springs from Brea Canyon to Lemon) Golden Springs from Grand to BCY) New 300,000 — 100,000 — — 200,000 — — 02120 Arterial Street Rehab (DBB from Pathfinder to Mountain Laurel Way) Const.) New 600,000 600,000 — — — — — — 60206919 CDBG Area 1 ADA Curb Ramp Project (Const.)New 160,000 — — — — — — 160,000 Total - Street Improvement Projects $3,390,000 $930,000 $520,000 $719,492 $426,039 $500,000 $134,469 $160,000 Project #Project Description Status Total Budget 109) Measure M 111) Gas Tax 112) Prop A 113) Prop C 120) MTA Grant Traffic Management/Safety Projects (250-5510-46412) 24616 *Adaptive Traffic Control System Carryover - Under Const.$1,056,000 $—$—$278,102 $—$777,898 24819 *LED Illuminated Street Name Sign and HSL Replacement (Design) Carryover - In Design 45,000 — 45,000 — — — 24819 LED Illuminated Street Name Sign and HSL Replacement (Construction)New 350,000 350,000 — — — — 24120 Battery Back Up System- Final 11 Locations (Design and Construction)New 200,000 — — 100,000 100,000 — Total - Traffic Projects $1,651,000 $350,000 $45,000 $378,102 $100,000 $777,898 CAPITAL IMPROVEMENT PROJECT LIST City of Diamond Bar, California 166 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 257 Project #Project Description Status Total Budget 113) Prop C Foothill Transit Grant Transportation Infrastructure Improvements (250-5510-46413) 23318 *Lemon Avenue Quiet Zone Carryover - In Design $60,000 $60,000 $— 23420 Bus Shelter Replacement - GSD/ Calbourne New 40,000 — 40,000 23620 Bus Shelter Replacement - DBB/ Temple Ave New 40,000 — 40,000 Total-Transportation Infrastructure Improvements $140,000 $60,000 $80,000 Project #Project Description Status Total Budget 107) Measure W 108) RMRA 109) Measure M 113) Prop C 116) Traffic Imp Fund 117) Sewer Imp Fund 118) AB2766 (119) TDA (250) MSRC Grant Miscellaneous PW Improvements (250-5510-46420) 26019 * Groundwater Drainage Improvements-Phase 3 (Flapjack- Design) Carryover $65,000 $65,000 $—$—$—$—$—$—$—$— 26019 Groundwater Drainage Improvements-Phase 3 (Flapjack- Construction) New 280,000 280,000 — — — — — — —— 26116 *Sewer System Evaluation & Capacity Assurance Plan Carryover 16,138 — — — — — 16,138 — —— 26217 *Diamond Bar Blvd. Complete Streets GSD - 60FWY) - (Design) Carryover - In Design 75,000 — — 75,000 — — — — —— 22818 *Grand/GSD Intersection Enhancement (Construction)Carryover 1,527,451 — 876,811 207,691 223,031 110,000 — — 109,918 — 26319 *Electric Charging Station at City Hall Carryover - In Design 47,895 — — — — — — 16,948 — 30,947 Total-Miscellaneous PW Improvements $2,011,484 $345,000 $876,811 $282,691 $223,031 $110,000 $16,138 $16,948 $109,918 $30,947 CAPITAL IMPROVEMENT PROJECT LIST City of Diamond Bar, California 167 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 258 Project #Project Description Status Total Budget 001) GF Reserves 001) Prop A Exchange 122) Quimby 124) Park Dev Fund 107) Measure W Habitat Conserv Grant 31814) FEMA 31620) 132) Measure A Facilities, Parks and Rec Improvements (250-5556-46415) 25414 *Heritage Park Improvements (Design)Carryover - In Design $ 36,250 $—$—$36,250 $—$—$—$—$— 25517 *Canyon Loop Trail (Design)Carryover - In Design 50,000 — — — 25,000 — 25,000 — — 25517 Canyon Loop Trail (Construction)New 485,000 — — — — 33,000 267,000 — 185,000 25917 *Sycamore Canyon Park Slope Erosion Repairs (Construction) Carryover - Under Construction 587,840 188,701 123,758 — — — — 275,381 — 25819 *Sycamore Canyon Creek Repair Carryover - In Design 80,000 — 80,000 — — — — — — 25919 *Sunset Crossing Park (Design)Carryover - In Design 75,000 — 75,000 — — — — — — 25120 DBC Slope Creep Repairs and Enhancements (Design) New 75,000 — — — — 75,000 — — — Total - Facilities, Parks and Rec Improvements $1,389,090 $188,701 $278,758 $36,250 $25,000 $108,000 $292,000 $275,381 $185,000 FY 19-20 CIP Projects Grand Total $8,581,574 Indicates carryover of project from FY 18-19 CAPITAL IMPROVEMENT PROJECT LIST City of Diamond Bar, California 168 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 259 Funding Source Totals CIP Project Type Totals 001 General Fund Reserves $ 188,701 Street Improvements $ 3,390,000 001 Sale of Prop A Funds 278,758 Traffic Management/Safety Improvements 1,651,000 108 RMRA (SB-1)1,806,811 Transportation Infrastructure Improvements 140,000 109 Measure M 1,152,691 Miscellaneous PW Improvements 2,011,484 110 Measure R - Local Return Fd 719,492 Facilities, Parks and Rec. Improvements 1,389,090 111 Gas Tax Fund 471,039 $8,581,574 112 Prop A 378,102 113 Prop C 883,031 116 Traffic Mitigation 110,000 117 Sewer Improvement Fund 16,138 118 AB 2766 16,948 119 SB 821 Fund - Bike and Pedestrian Paths (TDA)109,918 120 MTA Grants 777,898 121 Waste Hauler Fund 134,469 122 Quimby 36,250 124 Park Development Fund 25,000 125 CDBG Funds 160,000 132 Measure A 185,000 250 Habitat Conservation Grant 292,000 250 FEMA 275,381 250 MRSC Grant 30,947 107 Measure W 453,000 TBD Foothill Transit Grant 80,000 Total $8,581,574 CAPITAL IMPROVEMENT PROJECT LIST City of Diamond Bar, California 169 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 260 City of Diamond Bar, California 170 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 261 City of Diamond Bar, California 171 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 262 City of Diamond Bar, California 172 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 263 City of Diamond Bar, California 173 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 264 City of Diamond Bar, California 174 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 265 City of Diamond Bar, California 175 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 266 City of Diamond Bar, California 176 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 267 City of Diamond Bar, California 177 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 268 City of Diamond Bar, California 178 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 269 City of Diamond Bar, California 179 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 270 City of Diamond Bar, California 180 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 271 City of Diamond Bar, California 181 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 272 City of Diamond Bar, California 182 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 273 City of Diamond Bar, California 183 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 274 City of Diamond Bar, California 184 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 275 City of Diamond Bar, California 185 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 276 City of Diamond Bar, California 186 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 277 City of Diamond Bar, California 187 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 278 City of Diamond Bar, California 188 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 279 City of Diamond Bar, California 189 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 280 City of Diamond Bar, California 190 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 281 City of Diamond Bar, California 191 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 282 City of Diamond Bar, California 192 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 283 City of Diamond Bar, California 193 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 284 DEPARTMENT:Capital Project DIVISION:Capital Project FUND #:250 FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Appropriated Fund Balance $(290,141) $(48,299) $(48,299) $10,673 31620 FEMA Revenue 21,028 544,813 154,256 275,381 31809 MSRC Grant —38,930 7,983 30,947 31814 Habitat Conservation Grant 181,579 25,000 —292,000 31816 CDAA Revenue 4,223 —118,151 31,816 31820 Land & Conservation Grant ——58,972 58,972 31821 Recreation Trails Grant 83,244 ——— 31952 Foothill Transit Grant ———80,000 36950 Cost Reimb - Various Funds —75,000 —— 39001 Transfer in - General Fund 738,733 2,323,933 1,615,694 467,459 39107 Transfer in - Measure W ———453,000 39108 Transfer in - RMRA Fund — 1,276,811 70,000 1,806,811 39109 Transfer in - Measure M 385,417 977,850 640,879 1,152,691 39110 Transfer in - Measure R 1,282,207 769,535 769,535 719,492 39111 Transfer in - Gas Tax 191,236 532,444 456,876 471,039 39112 Transfer in - Prop A - Transit 13,092 311,722 33,620 378,102 39113 Transfer in - Prop C - Transit 414,671 829,495 326,776 883,031 39114 Transfer in - MAP-21 ———— 39116 Transfer in - Traffic Mitigation 610,195 158,067 78,290 110,000 39117 Transfer in - Sewer Mitigation —64,551 48,413 16,138 39118 Transfer in - AB2766 119,705 74,195 57,247 16,948 39119 Transfer in - Trails Fund 37,525 132,337 22,419 109,918 39120 Transfer in - MTA Grants Fund 66,364 1,289,418 511,520 777,898 39121 Transfer in - Waste Hauler Fund 134,079 213,256 213,256 134,469 39122 Transfer in - Quimby 244,186 237,211 155,747 36,250 39123 Transfer in - Prop A - Safe Parks ———— 39124 Transfer in - Park Development 8,540 45,804 20,804 25,000 39125 Transfer in - CDBG 266,965 343,733 327,319 160,000 39131 Transfer in - Street Beautification 50,000 ——— 39132 Transfer in - Measure A — 190,717 190,717 185,000 39135 Transfer in - PEG Fees —75,000 —— 39540 Transfer in - Build & Fac Maint — 100,000 100,000 — TOTAL RESOURCES $4,562,847 $10,581,523 $5,930,175 $8,592,247 CAPITAL IMPROVEMENT PROJECTS FUND City of Diamond Bar, California 194 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 285 CAPITAL OUTLAY 5310-46415 Park & Rec Improvements $ 346,837 $— $— $— 5510-46411 Street Improvements 2,756,214 2,739,098 2,098,104 3,390,000 5510-46412 Traffic Mgmt Improvements 835,321 2,032,314 961,537 1,651,000 5510-46413 Transportation Infrastructure 6,498 312,934 177,934 140,000 5510-46420 Misc. Capital Improvements 666,277 2,625,440 777,592 2,011,484 TOTAL CAPITAL OUTLAY $ 4,611,146 $ 10,629,821 $ 8,581,574 $ 8,581,574 FUND BALANCE RESERVES 25500 Reserves $ (48,299) $ (48,298) $ 10,673 $ 10,673 FUND BALANCE RESERVES $ (48,299) $ (48,298) $ 10,673 $ 10,673 TOTAL USES $ 4,562,847 $ 10,581,523 $ 5,930,175 $ 8,592,247 CAPITAL IMPROVEMENT PROJECTS FUND City of Diamond Bar, California 195 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 286 City of Diamond Bar, California 196 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 287 FUND TYPE:Debt Service FUNCTION:Debt Service FUND #:370 FUND DESCRIPTION: This fund was established to account for the debt service on the 2002 fixed rate bonds used to finance the Diamond Bar Center. The fund will account for principal and interest payments on the bonds and any banking charges related to the bond. The costs will be reimbursed by means of a transfer from the General Fund. The bonds will mature June 1, 2033. The outstanding principal balance at June 30, 2019 is $8,775,000. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $80 $199 $199 $199 36100 Investment Earnings 250 100 100 100 39001 Transfer from General Fund 859,059 858,307 858,092 860,706 TOTAL RESOURCES $859,390 $858,606 $858,391 $861,005 OTHER EXPENDITURES 5333-42128 Banking Charges $3,285 $3,500 $3,285 $3,500 5333-47050 Bond Principal 420,000 440,000 440,000 460,000 5333-47100 Interest Expense 435,906 414,907 414,907 397,306 TOTAL OTHER EXP $859,191 $858,407 $858,192 $860,806 FUND BALANCE RESERVES 25500 Reserves $199 $199 $199 $199 FUND BALANCE RESERVES $199 $199 $199 $199 TOTAL USES $859,390 $858,606 $858,391 $861,005 DEBT SERVICE FUND City of Diamond Bar, California 197 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 288 City of Diamond Bar, California 198 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 289 FUND TYPE:Internal Service FUNCTION:Self Insurance FUND #:510 FUND DESCRIPTION: This fund was established in accordance with Resolution #89-53. The resolution states the City will establish a self-insurance reserve fund. The purpose of the fund shall be to pay all self-assumed losses and related costs. Contributions to the fund shall be pro-rata from all other City funds afforded protection under the program based upon each of the funds exposure to liability. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $921,506 $1,000,000 $1,000,000 $1,000,000 36100 Interest Revenue 8,140 8,500 8,500 9,000 39001 Transfer in - General Fund 460,706 456,628 456,628 487,451 TOTAL RESOURCES $1,390,351 $1,465,128 $1,465,128 $1,496,451 OTHER EXPENDITURES 4081-47200 Insurance Expenditures $31,055 $42,927 $42,927 $46,292 4081-47210 Insurance Deposits 359,296 422,201 422,201 450,159 TOTAL OTHER EXP $390,351 $465,128 $465,128 $496,451 FUND BALANCE RESERVES 25500 Reserves $1,000,000 $1,000,000 $1,000,000 $1,000,000 FUND BALANCE RESERVES $1,000,000 $1,000,000 $1,000,000 $1,000,000 TOTAL USES $1,390,351 $1,465,128 $1,465,128 $1,496,451 SELF INSURANCE FUND City of Diamond Bar, California 199 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 290 FUND TYPE: Internal Service FUNCTION: Equip Maint/ Replacement FUND #:520 FUND DESCRIPTION: This fund was established in FY99-00 to incorporate a method for the eventual replacement of the City's vehicles and associated equipment. The vehicles and equipment will be capitalized over its useful life expectancy. Beginning with FY 2015/16 the fleet fuel and maintenance costs will also be tracked in this fund. The necessary funds to cover the costs incurred are transferred from the General Fund. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserve $652,911 $532,721 $532,721 $435,333 36100 Investment Revenue 7,212 7,500 5,000 5,000 39001 Transfer in - General Fd —— 150,000 — TOTAL RESOURCES $660,123 $540,221 $687,721 $440,333 OPERATING EXPENDITURES 4093-42310 Fuel - Pool Cars $2,971 $6,000 $6,000 $6,000 5333-42310 Fuel - DBC —500 500 500 5350-42310 Fuel - Recreation 223 ——— 5230-42310 Fuel - Neighborhood Improvement 1,534 2,400 2,400 2,400 5556-42310 Fuel - Parks & Facilities 17,872 19,500 19,500 19,500 5554-42310 Fuel - Road Maintenance 6,512 8,000 8,000 8,000 4030-42203 Vehicle Maint - City Manager —500 500 500 4093-42203 Vehicle Maint - Pool Cars 6,436 7,000 7,000 7,000 5230-42203 Vehicle Maint - NI 1,173 2,500 2,500 2,500 5310-42203 Vehicle Maint - Parks & Rec Admin 160 ——— 5350-42203 Vehicle Maint - Recreation 91 ——— 5556-42203 Vehicle Maint - Parks & Facilities 19,027 20,000 20,000 20,000 5554-42203 Vehicle Maint - Road Maint 6,380 8,500 8,500 5,500 4090-42215 Depreciation Expense 65,022 50,000 65,000 75,000 TOTAL OPERATING EXP 127,402 124,900 139,900 146,900 CAPITAL OUTLAY 4090-46100 Auto Equipment $—$87,488 $87,488 $40,000 5554-46250 Miscellaneous Equipment — 25,000 25,000 40,000 TOTAL CAPITAL OUTLAY $—$112,488 $112,488 $80,000 FUND BALANCE RESERVES 25500 Reserves $532,721 $302,833 $435,333 $213,433 FUND BALANCE RESERVES $532,721 $302,833 $435,333 $213,433 TOTAL USES $660,123 $540,221 $687,721 $440,333 VEHICLE MAINTENANCE & REPLACEMENT FUND City of Diamond Bar, California 200 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 291 FUND TYPE:Internal Service FUNCTION:Equip Maint/Rpl FUND #:530 FUND DESCRIPTION: This fund has been established to assist the City in funding and anticipating various equipment replacement and/or enhancements. The equipment will be capitalized over the life expectancy and the amount will be transferred into this fund from the General Fund. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance, Beginning of Year $642,762 $783,755 $783,755 $1,682,495 36100 Investment Revenue 5,238 5,800 5,800 5,500 39001 Transfer in - General Fund 428,774 989,895 1,248,242 109,000 39018 Transfer in - Tech Reserve Fund 16,176 394,898 394,898 — TOTAL RESOURCES $1,092,950 $2,174,348 $2,432,695 $1,796,995 OPERATING EXPENDITURES 4070-42215 Depreciation - Expense $96,263 $150,000 $150,000 $150,000 TOTAL OPERATING EXP $96,263 $150,000 $150,000 $150,000 CAPITAL OUTLAY 4070-46230 Computer Equip-Hardware $151,748 $368,800 $368,800 $109,000 4070-46235 Computer Equip-Software 50,201 976,694 231,400 589,225 TOTAL CAPITAL OUTLAY $201,949 $1,345,494 $600,200 $698,225 LOSS ON EQUIPMENT DISPOSAL 4070-47170 Loss on Equipment Disposal $10,983 $—$—$— TOTAL LOSS ON EQUIP DISPOSAL $10,983 $—$—$— FUND BALANCE RESERVES 25500 Reserves $783,755 $678,854 $1,682,495 $948,770 FUND BALANCE RESERVES $783,755 $678,854 $1,682,495 $948,770 TOTAL USES $1,092,950 $2,174,348 $2,432,695 $1,796,995 EQUIPMENT MAINTENANCE & REPLACEMENT FUND City of Diamond Bar, California 201 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 292 FUND TYPE:Internal Service FUNCTION: Equip Maint/ Replacement FUND #:540 FUND DESCRIPTION: This fund was established in FY12-13 to incorporate a method to fund the eventual replacement of equipment at City Hall. The primary revenue source in this fund is rebates received from Southern California Edison from the installation of solar panels at City Hall. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserves $435,578 $444,107 $444,107 $206,107 36100 Investment Revenue 7,446 7,000 7,000 7,000 36760 Solar Incentive Revenue 1,084 ——— TOTAL RESOURCES $444,107 $451,107 $451,107 $213,107 CAPITAL OUTLAY 4093-46410 Capital Improvements $—$18,000 $18,000 $10,000 5333-46410 Capital Improvements — 100,000 100,000 75,000 5556-46410 Capital Improvements — 55,000 27,000 65,000 TOTAL CAPITAL OUTLAY $—$173,000 $145,000 $150,000 TRANSFERS OUT 9915-49250 Transfer Out - CIP Fund $—$100,000 $100,000 $— TOTAL TRANSFERS OUT $—$100,000 $100,000 $— FUND BALANCE RESERVES 25500 Restricted Fund Balance $—$—$—$— 25500 Reserves 444,107 178,107 206,107 63,107 FUND BALANCE RESERVES $444,107 $178,107 $206,107 $63,107 TOTAL USES $444,107 $451,107 $451,107 $213,107 BUILDING FACILITY & MAINTENANCE FUND City of Diamond Bar, California 202 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 293 City of Diamond Bar, California 203 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 294 FUND TYPE:Fiduciary Funds FUNCTION:OPEB Trust FUND #:620 FUND DESCRIPTION: This fund was established in accordance with the GASB Statement 74 (previously GASB 43) for Post Employment Benefit Plans Other Than Pension Plans. FY 17/18 Actual FY 18/19 Adjusted FY 18/19 Projected FY 19/20 Proposed ESTIMATED RESOURCES 25500 Fund Balance Reserves $149,069 $240,630 $240,630 $329,760 36100 Interest Revenue 6,970 10,000 2,000 5,000 39020 Contrib from OPEB Reserve 84,591 86,600 87,130 88,000 TOTAL RESOURCES $240,630 $337,230 $329,760 $422,760 OTHER EXPENDITURES 4090-40086 OPEB Expenditure $—$—$—$— TOTAL OTHER EXP $—$—$—$— FUND BALANCE RESERVES 25500 Reserves $240,630 $337,230 $329,760 $422,760 FUND BALANCE RESERVES $240,630 $337,230 $329,760 $422,760 TOTAL USES $240,630 $337,230 $329,760 $422,760 OTHER POST EMPLOYMENT BENEFITS TRUST City of Diamond Bar, California 204 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 295 City of Diamond Bar, California 205 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 296 Accounting System The set of records and procedures that are used to record, classify, and report information of the financial status and operations of an entity. Appropriation Money set aside by the City Council for a specific purpose. Appropriation Limit The calculated dollar amount that restricts the ability to receive and appropriate proceeds of taxes. Balanced Budget A budget in which sources of income (revenue) is equal to spending uses (expenditures). Baseline Budget A baseline budget serves as the starting point for City departments' budget, and typically includes initial revenue and expenditure projections. Beginning/Ending Fund Balance Unencumbered resources available in a fund from the prior/current year after payment of the prior/ current year expenses. Budget The City's financial plan for the 12 month period through June, which details spending priorities for the year and how the City will pay for them. Budget Calendar The schedule of key dates or milestones, which the City follows in the preparation and adoption of the budget. Capital Improvement Program (CIP) Funds used to account for the purchase or construction of major capital projects, which are not financed by proprietary, special assessment or trust funds. Capital Outlays Expenditures for the acquisition of capital assets. Capital Project Any improvement or acquisition of major facilities with a useful life of at least five years such as roads, bridges, buildings, or land. Carry-over A quantity left over or held for future use. Community Development Block Grants (CDBG) Funds established to account for revenues from the federal government and expenditures as prescribed under the Community Development Block Grant program. Cost Allocation A method used to charge general fund overhead costs to other funds such as an Internal Service Fund. Debt An obligation resulting from the borrowing of money or for the purchase of goods and services. GLOSSARY City of Diamond Bar, California 206 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 297 Debt Service Interest and principal payments on debt issued for major projects. Department An organizational unit comprised of programs or divisions. Encumbrance A legal obligation to pay funds, an expenditure of which has not yet occurred. Expense A cost incurred for operations, maintenance, interest or other charges. Fee A general term used for any charge levied by government for providing a service or performing an activity. Fiscal Year (FY) A 12-month accounting period that doesn't necessarily correspond to the calendar year. Diamond Bar's fiscal year starts on July 1 and in any given year and ends on June 30 of the following year. Franchise Fees Companies are granted special privileges for the continued use of public property, such as city streets. Such companies usually involve elements of monopoly and may require regulation. The Franchise Fees are the amounts required for the continued granting of these privileges. Franchises currently granted within the City are Electric, Gas, Cable TV, Bus Benches, and Waste Hauler. Full-Time Equivalent FTE) A position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. Fund A self-balancing set of accounts. Fund Balance The amount of financial resources in a given fund that are not restricted to fund existing commitments and are therefore available for any use permitted for the fund. General Fund A general fund typically is the chief operating fund of a government. Interfund Transfers Payments from one fund to another fund, primarily for work or services provided. Internal Service Fund A fund accounting for centralized services provided to various City departments where the cost is reimbursed. Operating Budget The annual appropriation of funds for on-going program costs, which include salaries, benefits, maintenance, operation, and capital outlay items. GLOSSARY City of Diamond Bar, California 207 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 298 Operating Costs Estimated expenses that can be expected to occur. Restricted Fund Balance The part of a fund that is legally limited to a specific use. Revenue Sources of income that finance the operations of government. Sales and Use Tax As a result of the Bradley-Burns Local Sales and Use tax law, 1% of the Sales & Use Tax is to be distributed to the City. Special Revenue Funds A fund that collects revenues that are restricted by the City, State or federal government as the method by which they may be spent. Transient Occupancy Tax (TOT) These revenues are received on a monthly basis from the hotels in the City. The hotels are required to pay a 10% tax based on the amount of their room rental revenues. Unrestricted Fund Balance The part of a fund not restricted for a specific use and available for general use. Vehicle License Fee VLF) Are collected by the State of California when vehicles are registered with the California Department of Motor Vehicles and distributed to various public agencies, including the City. GLOSSARY City of Diamond Bar, California 208 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 299 Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was approved by California voters in November 1979 and placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and spend in one year. The limit is different for each agency and the limit changes each year. Each year's limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. For cities which incorporated after 1978-79, such as the City of Diamond Bar, the initial appropriations limit was set by the voters at the time of incorporation. The City of Diamond Bar's base year is 1989-90. Each year the City Council must adopt, by resolution an appropriations limit for the following year. The factor that the City uses to compute the appropriation limit is base on the growth factor of change in the Los Angeles County population change over the prior year and the change in the State of California per capita income over the prior year. By using this factor the City will have an appropriation limit of $48,024,685 for FY 2019-2020. This City's total proposed appropriations subject to the limitation is $35,404,570 which is $12,620,115 less than the FY 2019-2020 limit of $48,024,685. 2019 - 2020 California Per Capita Income 3.85 % Change over Prior Year Population Change (0.01)% Change over Prior Year (County) Per Capita converted to a Ratio 1.0385 Population converted to a Ratio 0.9999 Calculation of Growth Factor 1.0384 Growth Factor = Per Capita Ratio x Population Ratio) 2018-2019 Appropriations Limit 46,248,905 2019-2020 Appropriations Limit 48,024,685 New Appropriations Limit = Prior Year Appropriations Limit x Growth Factor) APPROPRIATION LIMIT CALCULATION City of Diamond Bar, California 209 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 300 1989-90 Base Year 9,882,416 1990-91 Adjusted Base 10,785,669 1991-92 Adjusted Base 11,585,192 1992-93 Adjusted Base 11,762,247 1993-94 Adjusted Base 12,275,495 1994-95 Adjusted Base 13,169,824 1995-96 Adjusted Base 14,005,207 1996-97 Adjusted Base 14,729,615 1997-98 Adjusted Base 15,608,665 1998-99 Adjusted Base 16,482,389 1999-00 Adjusted Base 17,561,562 2000-01 Adjusted Base 18,772,045 2001-02 Adjusted Base 20,576,003 2002-03 Adjusted Base 22,364,058 2003-04 Adjusted Base 24,723,466 2004-05 Adjusted Base (revision)25,886,770 2005-06 Adjusted Base (revision)27,569,946 2006-07 Adjusted Base 28,885,277 2007-08 Adjusted Base 30,379,173 2008-09 Adjusted Base 31,954,909 2009-10 Adjusted Base 33,809,489 2010-11 Adjusted Base 33,408,743 2011-12 Adjusted Base 34,377,442 2012-13 Adjusted Base 35,809,031 2013-14 Adjusted Base 37,902,186 2014-15 Adjusted Base 38,109,968 2015-16 Adjusted Base 39,891,361 2016-17 Adjusted Base 42,563,150 2017-18 Adjusted Base 44,385,292 2018-19 Adjusted Base 46,248,905 2019-20 Adjusted Base 48,024,685 APPROPRIATION LIMIT CALCULATION City of Diamond Bar, California 210 FY 2019/20 Proposed Budget 8.1.b Packet Pg. 301 RESOLUTION NO. 2019 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, SETTING THE PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-2020 FOR THE CITY OF DIAMOND BAR IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE WHEREAS, Article XIII B of the Constitution of the State of California (enacted with the passage of Proposition 4 in 1979 and modified with the passage of Proposition 111 in 1990), provides that the total annual appropriations limit of such entity for the prior year be adjusted for changes in the non-residential assessed valuation or the percentage change in the California Per Capita Income and population except as otherwise specifically provided for in said Article; and WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIII B at a regularly scheduled meeting or a noticed special meeting. Prior to such meeti ng, documentation used in the determination of the appropriation limit shall be available to the public; and WHEREAS, Proposition 111 as approved by the voters of the State of California, revised the method for calculating the Gann Spending Limit, it also requires a recorded voice vote of the City Council regarding which of the annual adjustment factors have been selected each year; and WHEREAS, Section 7902 (a) and 7902.6 of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the fiscal year; and WHEREAS, the City Council of the City of Diamond Bar wishes to establish the appropriation limit for fiscal year 2019-2020 for the City of Diamond Bar. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar, California, as follows: Section 1. That it is hereby found and determined that the documentation used in the determination of the appropriations limit for the City of Diamond Bar for fiscal year 2019-2020 was available to the public in City offices of said City at least fifteen days prior to this date. 8.1.c Packet Pg. 302 Section 2. That the County of Los Angeles LAFCO, established the original appropriation limit for the newly incorporated City. Section 3. That the factor selected is the growth factor of the County population change over the prior year and the change in the California per capita income as the annual adjustment growth factor for use in calculating the Fiscal Year 2019 - 2020 Appropriations Limit. Section 4. That the Appropriation Limit for the City of Diamond Bar as established in accordance with Section 7902(a) and Section 7902.6 of the California Government Code is $48,024,685 for fiscal year 2019-2020. Section 5. That the Mayor of the City of Diamond Bar shall sign and the City Clerk shall certify to the passage and adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 4th day of June, 2019. Carol Herrera, Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 4th day of June, 2019, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Tommye Cribbins, City Clerk City of Diamond Bar 8.1.c Packet Pg. 303 1 RESOLUTION NO. 2019- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, AMENDING CITY OF DIAMOND BAR COMPENSATION PLAN AND FRINGE BENEFITS FOR FY 2019-2020 WHEREAS, the City Council of the City of Diamond Bar adopted and amended the City of Diamond Bar Compensation Plan (hereafter, the “Plan”) by adoption of Resolution No. 2018-21, which became effective July 7, 2018; WHEREAS, the City Council of the City of Diamond Bar has approved and adopted the annual budget for Fiscal Year 2019-2020; WHEREAS, the City Council of the City of Diamond Bar desires to amend Resolution 2018-21, to include a 2% cost of living adjustment for all benefitted classifications of employment including all executive positions (Department Heads, Assistant City Manager and City Manager) as reflected in the attached compensation plan as “EXHIBIT A”; WHEREAS, the City Council of the City of Diamond Bar desires to include an increase of $50 to the benefit allotment for all benefited classifications of employment including all executive positions (Department Heads, Assistant City Manager and City Manager) and City Council Members; and WHEREAS, the State minimum wage will increase to $13.00 per hour effective January 1, 2020. NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Diamond Bar, does hereby amend Resolution 2018-21 as follows: Section 1. The Salary Schedules for all City positions is hereby amended and adopted as shown in Exhibit A attached hereto as follows: A. Schedule A-1 shall be effective from July 6, 2019 through December 20, 2019. B. Schedule A-2 shall be effective December 21, 2019. C. Schedules B, C, D, E and F shall be effective July 6, 2019. Section 2. The Benefit Allotment for all benefitted classifications of employment shall be increased by $50 per month. 8.1.d Packet Pg. 304 2 PASSED, APPROVED AND ADOPTED this 4th day of June 2019. Carol Herrera, Mayor I, TOMMYE A. CRIBBINS, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 4th day of June 2019, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Tommye A. Cribbins, City Clerk City of Diamond Bar Attachment: Exhibit A, Salary Schedules for FY 2019/2020 8.1.d Packet Pg. 305 GRADE CLASSIFICATION A B C D E F G H1 Recreation Worker $12.00 $12.29 $12.90 H4 Recreation Leader I $12.00 $12.51 $13.14 $13.79 $14.48 H6 Administrative Intern I $12.32 $12.93 $13.58 $14.26 $14.97 $15.72 $16.50 Facility Attendant I Recreation Leader II Maintenance Worker I H8 Recreation Leader III $14.04 $14.74 $15.48 $16.25 $17.06 $17.92 $18.81 H12 Facility Attendant II $16.40 $17.22 $18.08 $18.99 $19.94 $20.93 $21.98 Maintenance Worker II H14 Recreation Specialist $18.03 $18.93 $19.88 $20.87 $21.92 $23.01 $24.16 Schedule A-1 CITY OF DIAMOND BAR COMPENSATION PLAN BY POSITION FY 2019 - 2020 PART-TIME/HOURLY NON-EXEMPT/NON-BENEFITED POSITIONS Effective July 6, 2019 through December 20, 2019 Approved by City Council on June 4, 2019 8.1.d Packet Pg. 306 GRADE CLASSIFICATION A B C D E F G H4 Recreation Leader I $13.00 $13.79 $14.48 H6 Administrative Intern I $13.00 $13.58 $14.26 $14.97 $15.72 $16.50 Facility Attendant I Recreation Leader II Maintenance Worker I H8 Recreation Leader III $14.04 $14.47 $15.48 $16.25 $17.06 $17.92 $18.81 H12 Facility Attendant II $16.40 $17.22 $18.08 $18.99 $19.94 $20.93 $21.98 Maintenance Worker II H14 Recreation Specialist $18.03 $18.93 $19.88 $20.87 $21.92 $23.01 $24.16 Schedule A-2 CITY OF DIAMOND BAR COMPENSATION PLAN BY POSITION FY 2019 - 2020 PART-TIME/HOURLY NON-EXEMPT/NON-BENEFITED POSITIONS Effective December 21, 2019 Approved by City Council on June 4, 2019 8.1.d Packet Pg. 307 COMPENSATION PLAN BY POSITION FY 2019 - 2020 GRADE CLASSIFICATION A B C D E F G H8 Asst. Pre-School Teacher $14.34 $15.06 $15.81 $16.60 $17.43 $18.30 $19.22 H10 Pre-School Teacher $15.79 $16.58 $17.41 $18.28 $19.20 $20.16 $21.17 CITY OF DIAMOND BAR PART-TIME/HOURLY NON-EXEMPT/BENEFITED POSITIONS Schedule B Effective July 6, 2019 Approved by City Council on June 4, 2019 8.1.d Packet Pg. 308 GRADE CLASSIFICATION A B C D E F G 6NE Maintenance Worker $19.14 $20.09 $21.10 $22.15 $23.26 $24.42 $25.64 1,530.90 $1,607.45 $1,687.82 $1,772.21 $1,860.82 $1,953.86 $2,051.56 3,316.96 $3,482.81 $3,656.95 $3,839.79 $4,031.78 $4,233.37 $4,445.04 39,803.50 $41,793.67 $43,883.35 $46,077.52 $48,381.40 $50,800.47 $53,340.49 7NE Recreation Specialist $19.61 $20.60 $21.63 $22.71 $23.84 $25.03 $26.29 Senior Office Specialist $1,569.18 $1,647.63 $1,730.02 $1,816.52 $1,907.34 $2,002.71 $2,102.85 3,399.88 $3,569.88 $3,748.37 $3,935.79 $4,132.58 $4,339.21 $4,556.17 40,798.58 $42,838.50 $44,980.43 $47,229.45 $49,590.92 $52,070.47 $54,673.99 10NE Senior Maintenance Worker $21.12 $22.18 $23.29 $24.45 $25.68 $26.96 $28.31 1,689.83 $1,774.32 $1,863.04 $1,956.19 $2,054.00 $2,156.70 $2,264.54 3,661.30 $3,844.37 $4,036.58 $4,238.41 $4,450.33 $4,672.85 $4,906.49 43,935.61 $46,132.39 $48,439.01 $50,860.96 $53,404.01 $56,074.21 $58,877.92 14NE Administrative Assistant $23.32 $24.48 $25.71 $26.99 $28.34 $29.76 $31.25 1,865.26 $1,958.52 $2,056.45 $2,159.27 $2,267.23 $2,380.59 $2,499.62 4,041.39 $4,243.46 $4,455.63 $4,678.42 $4,912.34 $5,157.95 $5,415.85 48,496.69 $50,921.53 $53,467.60 $56,140.98 $58,948.03 $61,895.43 $64,990.20 17NE Accounting, HR, Network/Systems, $25.11 $26.36 $27.68 $29.07 $30.52 $32.05 $33.65 Planning, Engineering Technician $2,008.68 $2,109.11 $2,214.57 $2,325.30 $2,441.56 $2,563.64 $2,691.82 Recreation Coordinator $4,352.14 $4,569.74 $4,798.23 $5,038.14 $5,290.05 $5,554.55 $5,832.28 Senior Administrative Assistant $52,225.63 $54,836.91 $57,578.76 $60,457.69 $63,480.58 $66,654.61 $69,987.34 Public Works Inspector 18NE Neighborhood Improvement Officer $25.74 $27.02 $28.37 $29.79 $31.28 $32.85 $34.49 Media Specialist $2,058.89 $2,161.84 $2,269.93 $2,383.43 $2,502.60 $2,627.73 $2,759.12 4,460.94 $4,683.98 $4,918.18 $5,164.09 $5,422.30 $5,693.41 $5,978.08 53,531.26 $56,207.82 $59,018.21 $61,969.12 $65,067.58 $68,320.96 $71,737.00 19NE Facilities & Asset Maintenance Tech.$26.38 $27.70 $29.08 $30.54 $32.06 $33.67 $35.35 2,110.37 $2,215.89 $2,326.68 $2,443.01 $2,565.16 $2,693.42 $2,828.09 4,572.46 $4,801.08 $5,041.14 $5,293.20 $5,557.86 $5,835.75 $6,127.54 54,869.54 $57,613.02 $60,493.67 $63,518.35 $66,694.27 $70,028.98 $73,530.43 21NE Administrative Coordinator $27.72 $29.10 $30.56 $32.08 $33.69 $35.37 $37.14 Executive Assistant $2,217.20 $2,328.06 $2,444.47 $2,566.69 $2,695.03 $2,829.78 $2,971.27 Accountant $4,803.94 $5,044.14 $5,296.35 $5,561.16 $5,839.22 $6,131.18 $6,437.74 Permit Services Coordinator $57,647.31 $60,529.68 $63,556.16 $66,733.97 $70,070.67 $73,574.20 $77,252.92 23NE Assistant Engineer $29.12 $30.57 $32.10 $33.71 $35.39 $37.16 $39.02 Assistant Planner $2,329.45 $2,445.92 $2,568.22 $2,696.63 $2,831.46 $2,973.04 $3,121.69 Sr. Neighborhood Improvement Officer $5,047.14 $5,299.50 $5,564.48 $5,842.70 $6,134.83 $6,441.58 $6,763.65 60,565.72 $63,594.01 $66,773.71 $70,112.39 $73,618.01 $77,298.91 $81,163.86 Schedule C CITY OF DIAMOND BAR COMPENSATION PLAN BY POSITION FY 2019 - 2020 FULL-TIME NON-EXEMPT BENEFITED POSITIONS Effective July 6, 2019 Approved by City Council on June 4, 2019 8.1.d Packet Pg. 309 GRADE CLASSIFICATION A B C D E F G 24E Management Analyst $29.85 $31.34 $32.90 $34.55 $36.28 $38.09 $40.00 2,387.64 $2,507.02 $2,632.37 $2,763.99 $2,902.19 $3,047.30 $3,199.67 5,173.22 $5,431.88 $5,703.48 $5,988.65 $6,288.08 $6,602.49 $6,932.61 62,078.67 $65,182.60 $68,441.73 $71,863.82 $75,457.01 $79,229.86 $83,191.36 28E Recreation Supervisor $32.94 $34.59 $36.32 $38.14 $40.04 $42.05 $44.15 2,635.56 $2,767.34 $2,905.70 $3,050.99 $3,203.54 $3,363.72 $3,531.90 5,710.38 $5,995.90 $6,295.69 $6,610.48 $6,941.00 $7,288.05 $7,652.45 68,524.55 $71,950.78 $75,548.32 $79,325.73 $83,292.02 $87,456.62 $91,829.45 29E Information Systems Analyst $33.77 $35.46 $37.23 $39.09 $41.05 $43.10 $45.25 2,701.45 $2,836.52 $2,978.35 $3,127.26 $3,283.63 $3,447.81 $3,620.20 5,853.14 $6,145.80 $6,453.09 $6,775.74 $7,114.53 $7,470.25 $7,843.77 70,237.66 $73,749.54 $77,437.02 $81,308.87 $85,374.32 $89,643.03 $94,125.18 30E Associate Planner $34.61 $36.34 $38.16 $40.07 $42.07 $44.18 $46.38 Senior Accountant $2,768.98 $2,907.43 $3,052.81 $3,205.45 $3,365.72 $3,534.00 $3,710.70 Senior Management Analyst $5,999.47 $6,299.44 $6,614.41 $6,945.13 $7,292.39 $7,657.01 $8,039.86 71,993.59 $75,593.27 $79,372.94 $83,341.58 $87,508.66 $91,884.10 $96,478.30 32E Facilities Maintenance Supervisor $36.36 $38.18 $40.09 $42.10 $44.20 $46.41 $48.73 2,909.16 $3,054.62 $3,207.35 $3,367.72 $3,536.11 $3,712.91 $3,898.56 6,303.19 $6,618.35 $6,949.27 $7,296.73 $7,661.57 $8,044.64 $8,446.88 75,638.27 $79,420.18 $83,391.19 $87,560.75 $91,938.79 $96,535.72 $101,362.51 34E Associate Engineer $38.21 $40.12 $42.12 $44.23 $46.44 $48.76 $51.20 Public Information Coordinator $3,056.44 $3,209.26 $3,369.73 $3,538.21 $3,715.12 $3,900.88 $4,095.92 6,622.29 $6,953.40 $7,301.07 $7,666.13 $8,049.43 $8,451.90 $8,874.50 79,467.46 $83,440.84 $87,612.88 $91,993.52 $96,593.20 $101,422.86 $106,494.00 36E Parks & Maintenance Supt.$40.14 $42.15 $44.25 $46.47 $48.79 $51.23 $53.79 Recreation Services Supt.$3,211.17 $3,371.73 $3,540.32 $3,717.33 $3,903.20 $4,098.36 $4,303.28 Senior Planner $6,957.54 $7,305.42 $7,670.69 $8,054.22 $8,456.94 $8,879.78 $9,323.77 Street Maintenance Supt.$83,490.50 $87,665.03 $92,048.28 $96,650.69 $101,483.23 $106,557.39 $111,885.26 37E Network/Systems Administrator $41.14 $43.20 $45.36 $47.63 $50.01 $52.51 $55.14 3,291.45 $3,456.02 $3,628.83 $3,810.27 $4,000.78 $4,200.82 $4,410.86 7,131.48 $7,488.05 $7,862.46 $8,255.58 $8,668.36 $9,101.78 $9,556.86 85,577.76 $89,856.65 $94,349.48 $99,066.95 $104,020.30 $109,221.31 $114,682.38 40E Senior Civil Engineer $44.31 $46.52 $48.85 $51.29 $53.86 $56.55 $59.38 3,544.53 $3,721.76 $3,907.85 $4,103.24 $4,308.40 $4,523.82 $4,750.01 7,679.82 $8,063.82 $8,467.01 $8,890.36 $9,334.87 $9,801.62 $10,291.70 92,157.89 $96,765.78 $101,604.07 $106,684.28 $112,018.49 $117,619.42 $123,500.39 41E Assistant to the City Manager $45.41 $47.69 $50.07 $52.57 $55.20 $57.96 $60.86 3,633.15 $3,814.80 $4,005.55 $4,205.82 $4,416.11 $4,636.92 $4,868.77 7,871.82 $8,265.41 $8,678.68 $9,112.62 $9,568.25 $10,046.66 $10,548.99 94,461.84 $99,184.93 $104,144.18 $109,351.38 $114,818.95 $120,559.90 $126,587.90 Schedule D FY 2019 - 2020 COMPENSATION PLAN BY POSITION CITY OF DIAMOND BAR FULL-TIME EXEMPT BENEFITED POSITIONS Effective July 6, 2019 Approved by City Council on June 4, 2019 8.1.d Packet Pg. 310 GRADE CLASSIFICATION A B C D E F G 40E Public Information Manager $44.31 $46.52 $48.85 $51.29 $53.86 $56.55 $59.38 Recreation Svcs. Manager $3,544.53 $3,721.76 $3,907.85 $4,103.24 $4,308.40 $4,523.82 $4,750.01 7,679.82 $8,063.82 $8,467.01 $8,890.36 $9,334.87 $9,801.62 $10,291.70 92,157.89 $96,765.78 $101,604.07 $106,684.28 $112,018.49 $117,619.42 $123,500.39 41E City Clerk $45.41 $47.69 $50.07 $52.57 $55.20 $57.96 $60.86 3,633.15 $3,814.80 $4,005.55 $4,205.82 $4,416.11 $4,636.92 $4,868.77 7,871.82 $8,265.41 $8,678.68 $9,112.62 $9,568.25 $10,046.66 $10,548.99 94,461.84 $99,184.93 $104,144.17 $109,351.38 $114,818.95 $120,559.90 $126,587.90 44E Human Res. & Risk Manager $48.91 $51.35 $53.92 $56.62 $59.45 $62.42 $65.54 3,912.50 $4,108.13 $4,313.53 $4,529.21 $4,755.67 $4,993.45 $5,243.13 8,477.09 $8,900.94 $9,345.99 $9,813.29 $10,303.95 $10,819.15 $11,360.11 101,725.07 $106,811.32 $112,151.88 $117,759.48 $123,647.45 $129,829.83 $136,321.32 46E Public Works Manager/$51.35 $53.92 $56.62 $59.45 $62.42 $65.54 $68.82 Assistant City Engineer $4,108.13 $4,313.53 $4,529.21 $4,755.67 $4,993.45 $5,243.13 $5,505.28 8,900.94 $9,345.99 $9,813.29 $10,303.95 $10,819.15 $11,360.11 $11,928.12 106,811.32 $112,151.88 $117,759.48 $123,647.45 $129,829.83 $136,321.32 $143,137.38 Schedule E CITY OF DIAMOND BAR COMPENSATION PLAN BY POSITION FY 2019 - 2020 FULL-TIME EXEMPT MANAGEMENT POSITIONS Effective July 6, 2019 Approved by City Council on June 4, 2019 8.1.d Packet Pg. 311 GRADE CLASSIFICATION A B C D E F G 51E Parks & Rec Director $58.10 $61.00 $64.05 $67.26 $70.62 $74.15 $77.86 4,647.83 $4,880.22 $5,124.23 $5,380.44 $5,649.47 $5,931.94 $6,228.54 10,070.30 $10,573.81 $11,102.50 $11,657.63 $12,240.51 $12,852.54 $13,495.16 120,843.58 $126,885.76 $133,230.05 $139,891.55 $146,886.12 $154,230.43 $161,941.95 52E Deputy City Manager $59.59 $62.57 $65.70 $68.98 $72.43 $76.05 $79.85 4,767.01 $5,005.36 $5,255.62 $5,518.40 $5,794.32 $6,084.04 $6,388.24 10,328.51 $10,844.94 $11,387.18 $11,956.54 $12,554.37 $13,182.09 $13,841.19 123,942.13 $130,139.24 $136,646.20 $143,478.51 $150,652.44 $158,185.06 $166,094.31 55E Community Dev. Director $64.17 $67.38 $70.75 $74.28 $78.00 $81.90 $85.99 Finance Director $5,133.54 $5,390.22 $5,659.73 $5,942.72 $6,239.85 $6,551.85 $6,879.44 Info. Systems Director $11,122.68 $11,678.81 $12,262.75 $12,875.89 $13,519.68 $14,195.67 $14,905.45 133,472.12 $140,145.72 $147,153.01 $154,510.66 $162,236.19 $170,348.00 $178,865.40 58E City Engineer/PW Director $69.10 $72.56 $76.19 $80.00 $84.00 $88.20 $92.61 5,528.26 $5,804.68 $6,094.91 $6,399.66 $6,719.64 $7,055.62 $7,408.40 11,977.91 $12,576.80 $13,205.64 $13,865.92 $14,559.22 $15,287.18 $16,051.54 143,734.86 $150,921.61 $158,467.69 $166,391.07 $174,710.62 $183,446.15 $192,618.46 59E Assistant City Manager $70.83 $74.37 $78.09 $82.00 $86.10 $90.40 $94.92 5,666.47 $5,949.79 $6,247.28 $6,559.65 $6,887.63 $7,232.01 $7,593.61 12,277.35 $12,891.22 $13,535.78 $14,212.57 $14,923.20 $15,669.36 $16,452.83 147,328.24 $154,694.65 $162,429.39 $170,550.86 $179,078.40 $188,032.32 $197,433.93 N/A City Manager $105.56 8,444.42 18,296.25 219,555.00 227,049.02 Schedule F CITY OF DIAMOND BAR COMPENSATION PLAN BY POSITION FY 2019 - 2020 FULL-TIME EXEMPT EXECUTIVE MANAGEMENT POSITIONS Effective July 6, 2019 Approved by City Council on June 4, 2019 8.1.d Packet Pg. 312 RESOLUTION NO. 2019- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADOPTING THE STATEMENT OF INVESTMENT WHEREAS, it is the City’s policy to annually adopt the City Investment Policy; and WHEREAS, the Investment Policy is intended to provide guidelines for the prudent investment of the City’s temporarily idle cash and to outline the policies for maximizing the efficiency of the City’s cash management system. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Diamond Bar does as follows: SECTION 1. That the City Council of the City of Diamond Bar adopts the attached Statement of Investment Policy (Exhibit A). PASSED, APPROVED AND ADOPTED THIS 4th Day of June, 2019. Carol Herrera, Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 4th day of June, 2019, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Tommye Cribbins, City Clerk 8.1.e Packet Pg. 313 CITY OF DIAMOND BAR INVESTMENT POLICY— FY 2019-20 1.0 POLICY: This Statement is intended to provide guidelines for the prudent investment of the City of Diamond Bar’s (“City”) temporarily idle cash and to outline the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled funds in accordance with the applicable local, state and federal laws. It is the policy of the City Council to review, update and adopt the City's Investment Policy on an annual basis. 2.0 SCOPE: This investment policy applies to all financial assets of the City of Diamond Bar. The Policy applies to the following funds and is accounted for in the City’s annual audited financial statements. A.General Fund B. Special Revenue Funds C. Debt Service Funds D. Capital Improvement Fund E. Internal Service Funds 3.0 STANDARDS OF PRUDENCE: The City Treasurer (or Finance Director) authorized to make investment decisions on behalf of the City of Diamond Bar investing public funds pursuant to this policy are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, a trustee shall act with care, skill, prudence and diligence under the circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, the City Treasurer or Finance Director is authorized to acquire investments as authorized by law. 4.0 INVESTMENT OBJECTIVES: The investment of funds of the City of Diamond Bar is directed to the goals of safety, liquidity and yield. The authority governing investments for municipal governments is set forth in the Government Code, Sections 53600, et. seq. 1 8.1.e Packet Pg. 314 1.Safety. Safety of principal is the foremost objective of the investment program. Investments of the City of Diamond Bar shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City of Diamond Bar will diversify its investments by investing funds among a variety of securities with independent returns. . The City will operate only in those investments that are considered very safe. 2.Liquidity. The investment portfolio will remain sufficiently liquid to meet all operating requirements which might be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature at the same time as cash is needed to meet anticipated demands. Additionally, since all possible cash demands cannot be anticipated, the portfolio will consist largely of securities with active secondary or resale markets or local government investment pools which offer same-day liquidity for short-term funds. 3.Yield. The investment portfolio shall be designed with the objective of achieving a competitive market rate of return or yield, while taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to safety and liquidity. The core investments shall be limited to low risk securities to be held to maturity with the following exceptions: A security with declining credit may be sold early to minimize loss of principal A security swap would improve the quality, yield or target duration of the portfolio. The liquidity needs of the portfolio require security to be sold. 5.0 DELEGATION OF AUTHORITY Authority to manage the City of Diamond Bar’s investment program is derived from Section 2.16.210 of the City of Diamond Bar’s Municipal Code which designates the City Manager to perform all duties associated with the legal function of the treasurer position. Management responsibility is hereby delegated to the City Treasurer who shall be responsible for all transactions undertaken and for establishing a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. 6.0 ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. Employees and investment officials are required to file annual disclosure statements as required for “public officials who manage public investments” (as defined and required by the Political Reform Act and related regulations, being Government Code Sections 81000 and the Fair Political Practices Commission [FPPC]). 2 8.1.e Packet Pg. 315 7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Treasurer (or Finance Director) will maintain a list of approved financial institutions authorized to provide investment services to the public agency in the State of California. A determination should be made to insure that all approved broker/dealer firms and individuals covering the City of Diamond Bar are reputable and trustworthy. In addition, the broker/dealer firms should have the ability to meet all of their financial obligations in dealing with the City of Diamond Bar. The firms and individuals covering the City of Diamond Bar should be knowledgeable and experienced in Public Agency investing and the investment products involved. No public deposit shall be made except in a qualified public depository as established by State law. All financial institutions and broker/dealers who desire to conduct investment transactions with the City of Diamond Bar must supply the City Treasurer or the Finance Director with the following: audited financial statements, proof of NASD certification, trading resolution, proof of State of California registration, completed broker/dealer questionnaire, certification of having read the City of Diamond Bar’s investment policy and depository contracts. An annual review of the financial condition and registrations of qualified bidders will be conducted by the Treasurer or the Finance Director. A current audited financial statement is required to be on file for each financial institution and broker/dealer with which the City of Diamond Bar invests. 8.0 AUTHORIZED AND SUITABLE INVESTMENTS The City’s investments are governed by the California Government Code (CGC). Specific types of investments are defined in CGC 53635. Also, CGC 53635.2 permits the use of CGC 53601 investment instruments, therefore, both CGC 53601 et seq. and CGC 53635 et seq. are the governing sections pertaining to legal investments. Investments will only be made in authorized securities with a maturity date of five (5) years or less from the transaction settlement date. For the purpose of these investments, the compliance with the investment percentage(s), in regards to the total investment portfolio, shall be calculated on the date the investment is acquired. If the percentage is legally compliant on the date of purchase, then compliance with the law shall have been met. 3 8.1.e Packet Pg. 316 Investment California Legal Requirements City of Diamond Bar Requirements Government Obligations: U.S. Treasury and Agency Obligations U.S. Treasury obligations are bills, notes and bonds issued by and direct obligations of the U.S. Government. Agency obligations are notes and bonds of Federal agencies and government sponsored enterprises, although not direct obligations of the Treasury, they involve federal sponsorship or guarantees) Authorized by CGC 53601(b), (f) 1. No limit on amount in the portfolio Bankers Acceptances A draft or bill of exchange accepted by a bank or trust company and brokered to investors in a secondary market. Its purpose is to facilitate trade and provide liquidity to the import-export markets). Authorized by CGC 53601(g) 1.Not to exceed 180 days 2. Not to exceed 40% of portfolio 3. Not to exceed 30% of portfolio if done with one bank. Commercial Paper Short term, unsecured, promissory notes issued by firms in the open market. These notes are generally backed by a bank credit facility, guarantee/bond of indemnity or some other support agreement. Authorized by CGC 53601 (h), CGC 53601.2 & CGC 53635 (a) 1.Not to exceed 270 days 2. Not to exceed 25% of portfolio 3. No more than 10% of portfolio may be invested in a single issuer 4. Must be rated P-1 by Moody’s Investors Service or A-1 by Standard and Poor’s Medium Term Notes Corporate notes, deposit notes and bank notes sold by an agent in the open market on a continually offered basis. These notes are debt obligations generally unsecured, although some issues come to market on a collateralized or securitized basis. Authorized by CGC 53601 (k), CGC 53601.2 1. Must have an minimum “A” rating 2. Not to exceed 30% of portfolio 3. Not to exceed 5% of portfolio with single issuer Negotiable Certificates of Deposit Issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. NCD’s differ from other CD’s because of their increased liquidity as they are actively traded on the secondary market. These deposits are uninsured and uncollateralized promissory notes. Authorized by CGC 53601 (i), GCC 53638 1.Not to exceed 30% portfolio 2.All purchases must be from institutions rated by a nationally recognized rating organization as designated by the Security and Exchange Commission. 4 8.1.e Packet Pg. 317 Certificates of Deposit Unsecured, direct obligations of a U.S. bank or savings & loan association. Federal Deposit Insurance Corporation FDIC) coverage is provided for government deposits, but limited to the first 250,000 on deposit on behalf of a given entity at a single financial institution. California law requires that deposits of public funds shall be collateralized if not insured). Authorized by CGC 53635, 53635.2, 53635.8, 53636, 53637, 53638, 53641 1. Must not exceed 30% of portfolio 2. Deposits in excess of the $250,000 FDIC insured limit shall be collateralized at a level of 110% of market value of principal and accrued interest. Repurchase Agreement These are agreements between an investor (the pool) who agrees to purchase securities and a seller (broker/dealer) who commits to repurchase these securities at a later date at the same price, plus interest). Authorized by CGC 53601 (j) 1. Market value of the security must be 102% or greater, and adjusted quarterly. 2. The minimal market value of 102% can’t be established by more than the next business day. 3. Requires a signed Master Repurchase Agreement from the participating bank or broker/dealer. Local Agency Obligations Bonds, notes warrants or other evidences of indebtedness of any local agency or by a department, board or authority of any local agency within the 50 United States). Authorized by CGC 53601(a)(c)(d) 1. Must comply with the financial requirements pertaining to temporary borrowing (TRANS, RANS, GANS) as shown in CGC 53820 – 53858. 2. Minimum credit requirement – Issuers must be at or above the following investment grade from one of these rating firms: Standard & Poors – Sp-1 or A; Fitch – F-1 or A; Moody’s – MIG 1 or A Money Market Funds Shares of beneficial interest issued by management companies. Shares represent ownership of diversified portfolio securities, which are redeemable at their net asset value). Authorized by CGC 53601 (l) 1. The pooled investments that comprise these funds must comply with 53601 and 53630 inclusive. Local Agency Investment Fund (LAIF) Provides high liquidity allowing deposits to be credited to the City’s checking account within twenty-four (24) hours. State Pool funds are operated directly by the Office of the State Treasurer, who commingles state and local funds. Authorized by CGC 16429.1 (b) 1. No more than 60% or $65 million whichever is less shall be invested in LAIF. 5 8.1.e Packet Pg. 318 Supranational United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. Authorized by CGC 53601 (q) 1. Maximum maturity of five years or less 2. Eligible for purchase and sale within the United States 3. “AA” rated or better by an NRSRO 4. Not to exceed 30% of the portfolio 9.0 PROHIBITED AND RESTRICTED CATEGORIES OF INVESTMENTS The following investments are either prohibited by law or authorized by law and prohibited by the City Treasurer. Inverse Floaters Prohibited by CGC 53601.6 Range Notes Prohibited by CGC 53601.6 Mortgage Derived, Interest-only Strips Prohibited by CGC 53601.6 Zero (“Strip”) Coupons Prohibited by CGC 53601.6 Futures Market Allowable by CGC 53601.6 Prohibited by City Treasurer Options Market Allowable by CGC 53601.6 Prohibited by City Treasurer Priority Obligations Allowable by CGC 53601 (n) Prohibited by City Treasurer 10.0 REVIEW OF INVESTMENT PORTFOLIO The securities held by the City of Diamond Bar must be in compliance with Section 8.0 Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section 8.0 subsequent to the date of purchase the City Treasurer shall at least quarterly review the portfolio to identify those securities that do not comply. The City Treasurer shall establish procedures to report to the City Council major and critical incidences of noncompliance identified through the review of the portfolio. Should any investment listed in Section 8 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer shall consider rebalancing the portfolio after evaluating the expected length of time that it will be imbalanced. Portfolio percentage limits are in place in order to ensure diversification of the City investment portfolio; a small temporary imbalance will not significantly impair that strategy. 11.0 COLLATERALIZATION Collateralization will be required on two types of investments: certificates of deposit and repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value of principal and accrued interest. The City Treasurer, at his/her discretion may waive the collateral 6 8.1.e Packet Pg. 319 requirement for deposits up to the maximum dollar amount which are covered by the Federal Deposit Insurance Corporation, currently $250,000. 12.0 SAFEKEEPING AND CUSTODY All security transactions, including collateral for repurchase agreements, entered into by the City of Diamond Bar shall be conducted on a delivery versus payment (DVP) basis. Securities will be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts. 13.0 MAXIMUM MATURITIES To the extent possible the City of Diamond Bar will attempt to match its investments with anticipated cash flow requirements. The prescribed method of the City of Diamond Bar shall be referred to as “layering” the investments. Monies not needed to cover immediate operating costs may be invested up to a five year maturity. 14.0 INTERNAL CONTROLS The City Treasurer and the Finance Director shall establish procedures that separate the internal responsibility for management and accounting of the investment portfolio. An analysis by an independent, external auditor shall be conducted periodically to review internal controls, account activity and compliance with policies and procedures. 15.0 REPORTING As required by California Government Code Section 53607, a monthly report of investments will be provided to the City Council. The required elements of this report are as follows: a) Type of investment b) Issuer c) Date of Maturity d) Amount of deposit or cost of security e) Current market value of securities with maturity in excess of twelve months f) Statement relating the report to the Statement of Investment Policy g) Rate of interest h) Statement that there are sufficient funds to meet the next six months' obligations The basic premise underlying the City of Diamond Bar's investment philosophy is to insure that money is always available when needed. 16.0 Investment Policy Adoption The City of Diamond Bar’s investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council. 7 8.1.e Packet Pg. 320 Attachments: Appendix A - Broker Dealer Questionnaire Appendix B - Glossary of Cash and Investment Management Terms Appendix C - Local Agency Investment Fund Description 8 8.1.e Packet Pg. 321 CITY OF DIAMOND BAR BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1.Name of Firm: 2.Address: 3.Telephone: 4.Broker's Representative to the City (attach resume): 5.Manager/Partner-in-Charge (attach resume): Name: Title Telephone: 6.List all personnel who will be trading with or quoting securities to City employees (attach resume) 7.Which of the above personnel have read the City's investment policy? 8.Is your firm a primary dealer in United States Government Securities? Yes____ No____ Name: Title Telephone: Name: Title Telephone: mfCITY0 DIAMOND BAR CALIFORNIA 9 8.1.e Packet Pg. 322 9.List the total volume of United States Government and Agency Securities for the last calendar year. Firm-wide _______________ No. of Transactions Your local office __________ No. of Transactions 10.Which instruments are offered regularly by your local office? 11. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity __________________________ Contact ________________________ Telephone Client Since 12.Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 13.Has your local office ever subject to a regulatory or state/federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so explain: 14.Has a client ever claimed in writing that your firm was responsible for investment losses? If so, explain. _____________________________________________ 10 8.1.e Packet Pg. 323 15.Explain your normal custody and delivery process. Who audits these fiduciary systems? Can you meet safekeeping requirements? ___________________ 16. How many and what percentage of your transactions failed Last month? ___________ Last year? ______________ 17. Describe the capital line and trading limits of the office that would conduct business with the City of Diamond Bar. 18. Does your firm participate in the S.I.P.C. insurance program if not, explain. 19.What portfolio information, if any, do you require from your clients? 20.What reports, transactions, confirmations and paper trail will the City receive? 21.Does your firm offer investment training to your clients? 22.Please enclose the following: Latest audited financial statements. Samples of reports, transactions, and confirmations the City will receive. Samples of research reports and/or publications that your firm regularly provides to clients. Complete schedule of fees and charges for various transactions. NoYes_ 11 8.1.e Packet Pg. 324 CERTIFICATION*** I hereby certify that I have personally read the Statement of Investment Policy of the City of Diamond Bar, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Diamond Bar. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of Diamond Bar of all foreseeable risks associated with financial transactions conducted with our firm. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Signed __________________________ Date Title ____________________________ Countersignature* _________________ Date Title ____________________________ Company president or person in charge of government securities operations. 12 8.1.e Packet Pg. 325 Appendix B Glossary of Cash and Investment Management Terms Accrued Interest. Interest earned but which has not yet been paid or received. Agency. See "Federal Agency Securities." Ask Price. Price at which a broker/dealer offers to sell a security to an investor. Also known as offered price.” Asset Backed Securities (ABS). A fixed-income security backed by notes or receivables against assets other than real estate. Generally issued by special purpose companies that “own” the assets and issue the ABS. Examples include securities backed by auto loans, credit card receivables, home equity loans, manufactured housing loans, farm equipment loans and aircraft leases. Average Life. The average length of time that an issue of serial bonds and/or term bonds with a mandatory sinking fund feature is expected to be outstanding. Bankers' Acceptance (BA's). A draft or bill of exchange drawn upon and accepted by a bank. Frequently used to finance shipping of international goods. Used as a short-term credit instrument, bankers' acceptances are traded at a discount from face value as a money market instrument in the secondary market on the basis of the credit quality of the guaranteeing bank. Basis Point. One hundredth of one percent, or 0.01%. Thus 1% equals 100 basis points. Bearer Security. A security whose ownership is determined by the holder of the physical security. Typically, there is no registration on the issuer’s books. Title to bearer securities is transferred by delivery of the physical security or certificate. Also known as “physical securities.” Benchmark Bills: In November 1999, FNMA introduced its Benchmark Bills program, a short- term debt securities issuance program to supplement its existing discount note program. The program includes a schedule of larger, weekly issues in three- and six-month maturities and biweekly issues in one-year for Benchmark Bills. Each issue is brought to market via a Dutch single price) auction. FNMA conducts a weekly auction for each Benchmark Bill maturity and accepts both competitive and non-competitive bids through a web based auction system. This program is in addition to the variety of other discount note maturities, with rates posted on a daily basis, which FNMA offers. FNMA's Benchmark Bills are unsecured general obligations that are issued in book- entry form through the Federal Reserve Banks. There are no periodic payments of interest on Benchmark Bills, which are sold at a discount from the principal amount and payable at par at maturity. Issues under the Benchmark program constitute the same credit standing as other FNMA discount notes; they simply add organization and liquidity to the short- term Agency discount note market. Benchmark Notes/Bonds: Benchmark Notes and Bonds are a series of FNMA “bullet” maturities non-callable) issued according to a pre-announced calendar. Under its Benchmark Notes/Bonds program, 2, 3, 5, 10 and 30- year maturities are issued each quarter. Each Benchmark Notes new 13 8.1.e Packet Pg. 326 issue has a minimum size of $4 billion, 30- year new issues having a minimum size of $1 billion, with re-openings based on investor demand to further enhance liquidity. The amount of non-callable issuance has allowed FNMA to build a yield curve in Benchmark Notes and Bonds in maturities ranging from 2 to 30 years. The liquidity emanating from these large size issues has facilitated favorable financing opportunities through the development of a liquid overnight and term repo market. Issues under the Benchmark program constitute the same credit standing as other FNMA issues; they simply add organization and liquidity to the intermediate- and long-term Agency market. Benchmark. A market index used as a comparative basis for measuring the performance of an investment portfolio. A performance benchmark should represent a close correlation to investment guidelines, risk tolerance and duration of the actual portfolio's investments. Bid Price. Price at which a broker/dealer offers to purchase a security from an investor. Bond Market Association (BMA). The bond market trade association representing the largest securities markets in the world. In addition to publishing a Master Repurchase Agreement, widely accepted as the industry standard document for Repurchase Agreements, the BMA also recommends bond market closures and early closes due to holidays. Bond. Financial obligation for which the issuer promises to pay the bondholder (the purchaser or owner of the bond) a specified stream of future cash flows, including periodic interest payments and a principal repayment. Book Entry Securities. Securities that are recorded in a customer’s account electronically through one of the financial markets electronic delivery and custody systems, such as the Fed Securities wire, DTC and PTC (as opposed to bearer or physical securities). The trend is toward a certificate-free society in order to cut down on paperwork and to diminish investors’ concerns about the certificates themselves. The vast majority of securities are now book entry securities. Book Value. The value at which a debt security is reflected on the holder's records at any point in time. Book value is also called “amortized cost” as it represents the original cost of an investment adjusted for amortization of premium or accretion of discount. Also called “carrying value.” Book value can vary over time as an investment approaches maturity and differs from market value” in that it is not affected by changes in market interest rates. Broker/Dealer. A person or firm transacting securities business with customers. A “broker” acts as an agent between buyers and sellers, and receives a commission for these services. A dealer” buys and sells financial assets from its own portfolio. A dealer takes risk by owning inventory of securities, whereas a broker merely matches up buyers and sellers. See also "Primary Dealer." Bullet Notes/Bonds. Notes or bonds that have a single maturity date and are non-callable. California Local Agency Bonds: Bonds that are issued by a California county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation. Call Date. Date at which a call option may be or is exercised. 14 8.1.e Packet Pg. 327 Call Option. The right, but not the obligation, of an issuer of a security to redeem a security at a specified value and at a specified date or dates prior to its stated maturity date. Most fixed- income calls are a par, but can be at any previously established price. Securities issued with a call provision typically carry a higher yield than similar securities issued without a call feature. There are three primary types of call options (1) European - one-time calls, (2) Bermudan - periodically on a predetermined schedule (quarterly, semi-annual, annual), and (3) American continuously callable at any time on or after the call date. There is usually a notice period of at least 5 business days prior to a call date. Callable Bonds/Notes. Securities, which contain an imbedded call option giving the issuer, the right to redeem the securities prior to maturity at a predetermined price and time. Certificate of Deposit (CD). Bank obligation issued by a financial institution generally offering a fixed rate of return (coupon) for a specified period of time (maturity). Can be as long as 10 years to maturity, but most CDs purchased by public agencies are one year and under. Collateral. Investment securities or other property that a borrower pledges to secure repayment of a loan, secure deposits of public monies, or provide security for a repurchase agreement. Collateralization. Process by which a borrower pledges securities, property, or other deposits for securing the repayment of a loan and/or security. Collateralized Mortgage Obligation (CMO). A security that pools together mortgages and separates them into short, medium, and long-term positions (called tranches). Tranches are set up to pay different rates of interest depending upon their maturity. Interest payments are usually paid monthly. In “plain vanilla” CMOs, principal is not paid on a tranche until all shorter tranches have been paid off. This system provides interest and principal in a more predictable manner. A single pool of mortgages can be carved up into numerous tranches each with its own payment and risk characteristics. Commercial Paper. Short term unsecured promissory note issued by a company or financial institution. Issued at a discount and matures for par or face value. Usually a maximum maturity of 270 days, and given a short-term debt rating by one or more NRSROs. Convexity. A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates greater sensitivity of a bond's price to interest rate changes. Corporate Note. A debt instrument issued by a corporation with a maturity of greater than one year and less than ten years. Counterparty. The other party in a two party financial transaction. "Counterparty risk" refers to the risk that the other party, to a transaction, will fail in its related obligations. For example, the bank or broker/dealer in a repurchase agreement. Coupon Rate. Annual rate of interest on a debt security, expressed as a percentage of the bond’s face value. Current Yield. Annual rate of return on a bond based on its price. Calculated as (coupon rate / price), but does not accurately reflect a bond’s true yield level. 15 8.1.e Packet Pg. 328 Custody. Safekeeping services offered by a bank, financial institution or trust company, referred to as the “custodian.” Service normally includes the holding and reporting of the customer's securities, the collection and disbursement of income, securities settlement and market values. Dealer. A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. Delivery Versus Payment (DVP). Settlement procedure in which securities are delivered versus payment of cash, but only after cash has been received. Most security transactions, including those through the Fed Securities Wire system and DTC, are done DVP as a protection for both the buyer and seller of securities. Depository Trust Company (DTC). A firm through which members can use a computer to arrange for securities to be delivered to other members without physical delivery of certificates. A member of the Federal Reserve System and owned mostly by the New York Stock Exchange, the Depository Trust Company uses computerized debit and credit entries. Most corporate securities, commercial paper, CDs and BAs clear through DTC. Derivatives. For hedging purposes, common derivatives are options, futures, swaps and swaptions. All Collateralized Mortgage Obligations (“CMOs”) are derivatives. (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). Derivative Security. Financial instrument created from, or whose value depends upon, one or more underlying assets or indexes of asset values. Designated Bond. FFCB’s regularly issued, liquid, non-callable securities that generally have a 2 or 3 year original maturity. New issues of Designated Bonds are $1 billion or larger. Re- openings of existing Designated Bond issues are generally a minimum of $100 million. Designated Bonds are offered through a syndicate of two to six dealers. Twice each month the Funding Corporation announces its intention to issue a new Designated Bond, reopen an existing issue, or to not issue or reopen a Designated Bond. Issues under the Designated Bond program constitute the same credit standing as other FFCB issues; they simply add organization and liquidity to the intermediate- and long-term Agency market. Discount Notes. Unsecured general obligations issued by Federal Agencies at a discount. Discount notes mature at par and can range in maturity from overnight to one year. Very large primary (new issue) and secondary markets. Discount Rate. Rate charged by the system of Federal Reserve Banks on overnight loans to member banks. Changes to this rate are administered by the Federal Reserve and closely mirror changes to the “fed funds rate.” Discount Securities. Non-interest bearing money market instruments that are issued at discount and redeemed at maturity for full face value. Examples include: U.S. Treasury Bills, Federal Agency Discount Notes, Bankers' Acceptances and Commercial Paper. Discount. The amount by which a bond or other financial instrument sells below its face 16 8.1.e Packet Pg. 329 value. See also "Premium." Diversification. Dividing investment funds among a variety of security types, maturities, industries and issuers offering potentially independent returns. Dollar Price. A bond’s cost expressed as a percentage of its face value. For example, a bond quoted at a dollar price of 95 ½, would have a principal cost of $955 per $1,000 of face value. Duff & Phelps. One of several NRSROs that provide credit ratings on corporate and bank debt issues. Duration. The weighted average maturity of a security’s or portfolio’s cash flows, where the present values of the cash flows serve as the weights. The greater the duration of a security/portfolio, the greater its percentage price volatility with respect to changes in interest rates. Used as a measure of risk and a key tool for managing a portfolio versus a benchmark and for hedging risk. There are also different kinds of duration used for different purposes (e.g. MacAuley Duration, Modified Duration). Fannie Mae. See "Federal National Mortgage Association." Fed Money Wire. A computerized communications system that connects the Federal Reserve System with its member banks, certain U. S. Treasury offices, and the Washington D.C. office of the Commodity Credit Corporation. The Fed Money Wire is the book entry system used to transfer cash balances between banks for themselves and for customer accounts. Fed Securities Wire. A computerized communications system that facilitates book entry transfer of securities between banks, brokers and customer accounts, used primarily for settlement of U.S. Treasury and Federal Agency securities. Fed. See "Federal Reserve System." Federal Agency Security. A debt instrument issued by one of the Federal Agencies. Federal Agencies are considered second in credit quality and liquidity only to U.S. Treasuries. Federal Agency. Government sponsored/owned entity created by the U.S. Congress, generally for the purpose of acting as a financial intermediary by borrowing in the marketplace and directing proceeds to specific areas of the economy considered to otherwise have restricted access to credit markets. The largest Federal Agencies are GNMA, FNMA, FHLMC, FHLB, FFCB, SLMA, and TVA. Federal Deposit Insurance Corporation (FDIC). Federal agency that insures deposits at commercial banks, currently to a limit of $250,000 per depositor per bank. Federal Farm Credit Bank (FFCB). One of the large Federal Agencies. A government sponsored enterprise (GSE) system that is a network of cooperatively-owned lending institutions that provides credit services to farmers, agricultural cooperatives and rural utilities. The FFCBs act as financial intermediaries that borrow money in the capital markets and use the proceeds to make loans and provide other assistance to farmers and farm-affiliated businesses. Consists of the consolidated operations of the Banks for Cooperatives, Federal Intermediate Credit Banks, and Federal Land Banks. Frequent issuer of discount notes, agency notes and callable agency securities. FFCB debt is not an obligation of, nor is it guaranteed by 17 8.1.e Packet Pg. 330 the U.S. government, although it is considered to have minimal credit risk due to its importance to the U.S. financial system and agricultural industry. Also issues notes under its “designated note” program. Federal Funds (Fed Funds). Funds placed in Federal Reserve Banks by depository institutions in excess of current reserve requirements, and frequently loaned or borrowed on an overnight basis between depository institutions. Federal Funds Rate (Fed Funds Rate). The interest rate charged by a depository institution lending Federal Funds to another depository institution. The Federal Reserve influences this rate by establishing a "target" Fed Funds rate associated with the Fed's management of monetary policy. Federal Home Loan Bank System (FHLB). One of the large Federal Agencies. A government sponsored enterprise (GSE) system, consisting of wholesale banks (currently twelve district banks) owned by their member banks, which provides correspondent banking services and credit to various financial institutions, financed by the issuance of securities. The principal purpose of the FHLB is to add liquidity to the mortgage markets. Although FHLB does not directly fund mortgages, it provides a stable supply of credit to thrift institutions that make new mortgage loans. FHLB debt is not an obligation of, nor is it guaranteed by the U.S. government, although it is considered to have minimal credit risk due to its importance to the U.S. financial system and housing market. Frequent issuer of discount notes, agency notes and callable agency securities. Also issues notes under its “global note” and “TAP” programs. Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac"). One of the large Federal Agencies. A government sponsored public corporation (GSE) that provides stability and assistance to the secondary market for home mortgages by purchasing first mortgages and participation interests financed by the sale of debt and guaranteed mortgage backed securities. FHLMC debt is not an obligation of, nor is it guaranteed by the U.S. government, although it is considered to have minimal credit risk due to its importance to the U.S. financial system and housing market. Frequent issuer of discount notes, agency notes, callable agency securities and MBS. Also issues notes under its “reference note” program. Federal National Mortgage Association (FNMA or "Fannie Mae"). One of the large Federal Agencies. A government sponsored public corporation (GSE) that provides liquidity to the residential mortgage market by purchasing mortgage loans from lenders, financed by the issuance of debt securities and MBS (pools of mortgages packaged together as a security). FNMA debt is not an obligation of, nor is it guaranteed by the U.S. government, although it is considered to have minimal credit risk due to its importance to the U.S. financial system and housing market. Frequent issuer of discount notes, agency notes, callable agency securities and MBS. Also issues notes under its “benchmark note” program. Federal Reserve Bank. One of the 12 distinct banks of the Federal Reserve System. Federal Reserve System (the Fed). The independent central bank system of the United States that establishes and conducts the nation's monetary policy. This is accomplished in three major ways: (1) raising or lowering bank reserve requirements, (2) raising or lowering the target Fed Funds Rate and Discount Rate, and (3) in open market operations by buying and selling government securities. The Federal Reserve System is made up of twelve Federal Reserve 18 8.1.e Packet Pg. 331 District Banks, their branches, and many national and state banks throughout the nation. It is headed by the seven member Board of Governors known as the “Federal Reserve Board” and headed by its Chairman. Financial Industry Regulatory Authority, Inc (FINRA). A private corporation that acts as a self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). Though sometimes mistaken for a government agency, it is a non-governmental organization that performs financial regulation of member brokerage firms and exchange markets. The government also has a regulatory arm for investments, the Securities and Exchange Commission. Fiscal Agent/Paying Agent. A bank or trust company that acts, under a trust agreement with a corporation or municipality, in the capacity of general treasurer. The agent performs such duties as making coupon payments, paying rents, redeeming bonds, and handling taxes relating to the issuance of bonds. Fitch Investors Service, Inc. One of several NRSROs that provide credit ratings on corporate and municipal debt issues. Floating Rate Security (FRN or “floater”). A bond with an interest rate that is adjusted according to changes in an interest rate or index. Differs from variable-rate debt in that the changes to the rate take place immediately when the index changes, rather than on a predetermined schedule. See also “Variable Rate Security.” Freddie Mac. See "Federal Home Loan Mortgage Corporation". Ginnie Mae. See "Government National Mortgage Association". Global Notes: Notes designed to qualify for immediate trading in both the domestic U.S. capital market and in foreign markets around the globe. Usually large issues that are sold to investors worldwide and therefore have excellent liquidity. Despite their global sales, global notes sold in the U.S. are typically denominated in U.S. dollars. Government National Mortgage Association (GNMA or "Ginnie Mae"). One of the large Federal Agencies. Government-owned Federal Agency that acquires, packages, and resells mortgages and mortgage purchase commitments in the form of mortgage-backed securities. Largest issuer of mortgage pass-through securities. GNMA debt is guaranteed by the full faith and credit of the U.S. government (one of the few agencies that is actually full faith and credit of the U.S.). Government Securities. An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, Bonds, and SLGS." Government Sponsored Enterprise (GSE). Privately owned entity subject to federal regulation and supervision, created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy such as students, farmers, and homeowners. GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. For this reason, these securities will offer a yield premium over U.S. Treasuries. Some consider GSEs to be stealth recipients of corporate welfare. Examples of GSEs include: 19 8.1.e Packet Pg. 332 FHLB, FHLMC, FNMA and SLMA. Government Sponsored Enterprise Security. A security issued by a Government Sponsored Enterprise. Considered Federal Agency Securities. Index. A compilation of statistical data that tracks changes in the economy or in financial markets. Interest-Only (IO) STRIP. A security based solely on the interest payments from the bond. After the principal has been repaid, interest payments stop and the value of the security falls to nothing. Therefore, IOs are considered risky investments. Usually associated with mortgage- backed securities. Internal Controls. An internal control structure ensures that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points: 1. Control of collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer. 2. Separation of transaction authority from accounting and record keeping - By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. 3. Custodial safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party for custodial safekeeping. 4. Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. 5. Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities. 6. Written confirmation of transactions for investments and wire transfers - Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures. 7. Development of a wire transfer agreement with the lead bank and third-party custodian - The designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers. 20 8.1.e Packet Pg. 333 Inverse Floater. A floating rate security structured in such a way that it reacts inversely to the direction of interest rates. Considered risky as their value moves in the opposite direction of normal fixed-income investments and whose interest rate can fall to zero. Investment Advisor. A company that provides professional advice managing portfolios, investment recommendations and/or research in exchange for a management fee. Investment Adviser Act of 1940. Federal legislation that sets the standards by which investment companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance reporting requirements, and securities valuations. Investment Grade. Bonds considered suitable for preservation of invested capital; bonds rated a minimum of Baa3 by Moody’s, BBB- by Standard & Poor’s, or BBB- by Fitch. Although BBB” rated bonds are considered investment grade, most public agencies cannot invest in securities rated below “A.” Liquidity. Relative ease of converting an asset into cash without significant loss of value. Also, a relative measure of cash and near-cash items in a portfolio of assets. Also, a term describing the marketability of a money market security correlating to the narrowness of the spread between the bid and ask prices. Local Agency Investment Fund (LAIF): A voluntary investment fund open to state and local government entities and certain non-profit organizations in California in which organization pools their funds for investment. LAIF is managed by the State Treasurer’s Office. Long-Term Core Investment Program. Funds that are not needed within a one year period. Market Value. The fair market value of a security or commodity. The price at which a willing buyer and seller would pay for a security. Mark-to-market. Adjusting the value of an asset to its market value, reflecting in the process unrealized gains or losses. Master Repurchase Agreement. A widely accepted standard agreement form published by the Bond Market Association (BMA) that is used to govern and document Repurchase Agreements and protect the interest of parties in a repo transaction. Maturity Date. Date on which principal payment of a financial obligation is to be paid. Medium Term Notes (MTN's). Used frequently to refer to corporate notes of medium maturity 5-years and under). Technically, any debt security issued by a corporate or depository institution with a maturity from 1 to 10 years and issued under an MTN shelf registration. Usually issued in smaller issues with varying coupons and maturities, and underwritten by a variety of broker/dealers (as opposed to large corporate deals issued and underwritten all at once in large size and with a fixed coupon and maturity). Money Market. The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptance, etc.) are issued and traded. Money Market Mutual Fund (MMF). A type of mutual fund that invests solely in money 21 8.1.e Packet Pg. 334 market instruments, such as: U.S. Treasury bills, commercial paper, bankers' acceptances, and repurchase agreements. Money market mutual funds are registered with the SEC under the Investment Company Act of 1940 and are subject “rule 2a-7” which significantly limits average maturity and credit quality of holdings. MMF’s are managed to maintain a stable net asset value (NAV) of $1.00. Many MMFs carry ratings by a NRSRO. Moody's Investors Service. One of several NRSROs that provide credit ratings on corporate and municipal debt issues. Mortgage Backed Securities (MBS). Mortgage-backed securities represent an ownership interest in a pool of mortgage loans made by financial institutions, such as savings and loans, commercial banks, or mortgage companies, to finance the borrower's purchase of a home or other real estate. The majority of MBS are issued and/or guaranteed by GNMA, FNMA and FHLMC. There are a variety of MBS structures, some of which can be very risky and complicated. All MBS have reinvestment risk as actual principal and interest payments are dependent on the payment of the underlying mortgages which can be prepaid by mortgage holders to refinance and lower rates or simply because the underlying property was sold. Mortgage Pass-Through Securities. A pool of residential mortgage loans with the monthly interest and principal distributed to investors on a pro-rata basis. Largest issuer is GNMA. Municipal Note/Bond. A debt instrument issued by a state or local government unit or public agency. The vast majority of municipals are exempt from state and federal income tax, although some non-qualified issues are taxable. Mutual Fund. Portfolio of securities professionally managed by a registered investment company that issues shares to investors. Many different types of mutual funds exist (bond, equity, money fund); all except money market funds operate on a variable net asset value (NAV). Negotiable Certificate of Deposit (Negotiable CD). Large denomination CDs ($100,000 and larger) that are issued in bearer form and can be traded in the secondary market. Net Asset Value. The market value of one share of an investment company, such as a mutual fund. This figure is calculated by totaling a fund's assets which includes securities, cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing this total by the number of shares outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio. (See below.) Total assets) - (Liabilities)]/(Number of shares outstanding) NRSRO. A “Nationally Recognized Statistical Rating Organization.” A designated rating organization that the SEC has deemed a strong national presence in the U.S. NRSROs provide credit ratings on corporate and bank debt issues. Only ratings of a NRSRO may be used for the regulatory purposes of rating. Includes Moody’s, S&P, Fitch and Duff & Phelps. Offered Price. See also "Ask Price." Open Market Operations. Federal Reserve monetary policy tactic entailing the purchase or sale of government securities in the open market by the Federal Reserve System from and to primary dealers in order to influence the money supply, credit conditions, and interest rates. 22 8.1.e Packet Pg. 335 Par Value. Face value, stated value or maturity value of a security. Physical Delivery. Delivery of readily available underlying assets at contract maturity. Portfolio. Collection of securities and investments held by an investor. Premium. The amount by which a bond or other financial instrument sells above its face value. See also "Discount." Primary Dealer. Any of a group of designated government securities dealers designated by to the Federal Reserve Bank of New York. Primary dealers can buy and sell government securities directly with the Fed. Primary dealers also submit daily reports of market activity and security positions held to the Fed and are subject to its informal oversight. Primary dealers are considered the largest players in the U.S. Treasury securities market. Prime Paper. Commercial paper of high quality. Highest rated paper is A-1+/A-1 by S&P and P-1 by Moody’s. Principal. Face value of a financial instrument on which interest accrues. May be less than par value if some principal has been repaid or retired. For a transaction, principal is par value times price and includes any premium or discount. Prudent Investor Standard. Standard that requires that when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. More stringent than the “prudent person” standard as it implies a level of knowledge commensurate with the responsibility at hand. Range Note. A type of structured note that accrues interest daily at a set coupon rate that is tied to an index. Most range notes have two coupon levels; a higher accrual rate for the period the index is within a designated range, the lower accrual rate for the period that the index falls outside the designated range. This lower rate may be zero and may result in zero earnings. Rate of Return. Amount of income received from an investment, expressed as a percentage of the amount invested. Realized Gains (Losses). The difference between the sale price of an investment and its book value. Gains/losses are “realized” when the security is actually sold, as compared to unrealized” gains/losses which are based on current market value. See “Unrealized Gains Losses).” Reference Bills: FHLMC’s short-term debt program created to supplement its existing discount note program by offering issues from one month through one year, auctioned on a weekly or on an alternating four-week basis (depending upon maturity) offered in sizeable volumes ($1 billion and up) on a cycle of regular, standardized issuance. Globally sponsored and distributed, 23 8.1.e Packet Pg. 336 Reference Bill issues are intended to encourage active trading and market-making and facilitate the development of a term repo market. The program was designed to offer predictable supply, pricing transparency and liquidity, thereby providing alternatives to U.S. Treasury bills. FHLMC’s Reference Bills are unsecured general corporate obligations. This program supplements the corporation’s existing discount note program. Issues under the Reference program constitute the same credit standing as other FHLMC discount notes; they simply add organization and liquidity to the short-term Agency discount note market. Reference Notes: FHLMC’s intermediate-term debt program with issuances of 2, 3, 5, 10 and 30- year maturities. Initial issuances range from $2 - $6 billion with re-openings ranging $1 - $4 billion. The notes are high-quality bullet structures securities that pay interest semiannually. Issues under the Reference program constitute the same credit standing as other FHLMC notes; they simply add organization and liquidity to the intermediate- and long-term Agency market. Repurchase Agreement (Repo). A short-term investment vehicle where an investor agrees to buy securities from a counterparty and simultaneously agrees to resell the securities back to the counterparty at an agreed upon time and for an agreed upon price. The difference between the purchase price and the sale price represents interest earned on the agreement. In effect, it represents a collateralized loan to the investor, where the securities are the collateral. Can be DVP, where securities are delivered to the investor’s custodial bank, or “tri-party” where the securities are delivered to a third party intermediary. Any type of security can be used as collateral,” but only some types provide the investor with special bankruptcy protection under the law. Repos should be undertaken only when an appropriate BMA approved master repurchase agreement is in place. Reverse Repurchase Agreement (Reverse Repo). A repo from the point of view of the original seller of securities. Used by dealers to finance their inventory of securities by essentially borrowing at short-term rates. Can also be used to leverage a portfolio and in this sense, can be considered risky if used improperly. Safekeeping. Service offered for a fee, usually by financial institutions, for the holding of securities and other valuables. Safekeeping is a component of custody services. Secondary Market. Markets for the purchase and sale of any previously issued financial instrument. Securities Lending. An arrangement between and investor and a custody bank that allows the custody bank to “loan” the investors investment holdings, reinvest the proceeds in permitted investments, and shares any profits with the investor. Should be governed by a securities lending agreement. Can increase the risk of a portfolio in that the investor takes on the default risk on the reinvestment at the discretion of the custodian. Sinking Fund. A separate accumulation of cash or investments (including earnings on investments) in a fund in accordance with the terms of a trust agreement or indenture, funded by periodic deposits by the issuer (or other entity responsible for debt service), for the purpose of assuring timely availability of moneys for payment of debt service. Usually used in connection with term bonds. 24 8.1.e Packet Pg. 337 Spread. The difference between the price of a security and similar maturity U.S. Treasury investments, expressed in percentage terms or basis points. A spread can also be the absolute difference in yield between two securities. The securities can be in different markets or within the same securities market between different credits, sectors, or other relevant factors. Standard & Poor's. One of several NRSROs that provide credit ratings on corporate and municipal debt issues. STRIPS (Separate Trading of Registered Interest and Principal of Securities). Acronym applied to U.S. Treasury securities that have had their coupons and principal repayments separated into individual zero-coupon Treasury securities. The same technique and "strips" description can be applied to non-Treasury securities (e.g. FNMA strips). Structured Notes. Notes that have imbedded into their structure options such as step-up coupons or derivative- based returns. Supranational Debt. The debt of an international or multi-lateral financial agency used to finance economic and infrastructure development, environmental protection, poverty reduction and renewable energy around the world. Supranational debt is typically rated AAA by most NRSRO’s as these entities are well-capitalized, have significant capital commitments from a diverse capital base, conservative lending and risk management practices and strong supervision. Swap. Trading one asset for another. TAP Notes: Federal Agency notes issued under the FHLB TAP program. Launched in 6/99 as a refinement to the FHLB bullet bond auction process. In a break from the FHLB’s traditional practice of bringing numerous small issues to market with similar maturities, the TAP Issue Program uses the four most common maturities and reopens them up regularly through a competitive auction. These maturities (2, 3, 5 and 10 year) will remain open for the calendar quarter, after which they will be closed and a new series of TAP issues will be opened to replace them. This reduces the number of separate bullet bonds issued, but generates enhanced awareness and liquidity in the marketplace through increased issue size and secondary market volume. Tennessee Valley Authority (TVA). One of the large Federal Agencies. A wholly owned corporation of the United States government that was established in 1933 to develop the resources of the Tennessee Valley region in order to strengthen the regional and national economy and the national defense. Power operations are separated from non-power operations. TVA securities represent obligations of TVA, payable solely from TVA's net power proceeds, and are neither obligations of nor guaranteed by the United States. TVA is currently authorized to issue debt up to $30 billion. Under this authorization, TVA may also obtain advances from the U.S. Treasury of up to 150 million. Frequent issuer of discount notes, agency notes and callable agency securities. Total Return. Investment performance measured over a period of time that includes coupon interest, interest on interest, and both realized and unrealized gains or losses. Total return includes, therefore, any market value appreciation/depreciation on investments held at period end. Treasuries. Collective term used to describe debt instruments backed by the U.S. Government and issued through the U.S. Department of the Treasury. Includes Treasury bills, 25 8.1.e Packet Pg. 338 Treasury notes, and Treasury bonds. Also a benchmark term used as a basis by which the yields of non-Treasury securities are compared (e.g., "trading at 50 basis points over Treasuries"). Treasury Bills (T-Bills). Short-term direct obligations of the United States Government issued with an original term of one year or less. Treasury bills are sold at a discount from face value and do not pay interest before maturity. The difference between the purchase price of the bill and the maturity value is the interest earned on the bill. Currently, the U.S. Treasury issues 4- week, 13-week and 26-week T-Bills Treasury Bonds. Long-term interest-bearing debt securities backed by the U.S. Government and issued with maturities of ten years and longer by the U.S. Department of the Treasury. The Treasury stopped issuing Treasury Bonds in August 2001. Treasury Notes. Intermediate interest-bearing debt securities backed by the U.S. Government and issued with maturities ranging from one to ten years by the U.S. Department of the Treasury. The Treasury currently issues 2-year, 5-year and 10-year Treasury Notes. Trustee. A bank designated by an issuer of securities as the custodian of funds and official representative of bondholders. Trustees are appointed to insure compliance with the bond documents and to represent bondholders in enforcing their contract with the issuer. Uniform Net Capital Rule. SEC regulation 15C3-1 that outlines the minimum net capital ratio ratio of indebtedness to net liquid capital) of member firms and non-member broker/dealers. Unrealized Gains (Losses). The difference between the market value of an investment and its book value. Gains/losses are “realized” when the security is actually sold, as compared to unrealized” gains/losses which are based on current market value. See also “Realized Gains Losses).” Variable-Rate Security. A bond that bears interest at a rate that varies over time based on a specified schedule of adjustment (e.g., daily, weekly, monthly, semi-annually or annually). See also “Floating Rate Note.” Weighted Average Maturity (or just “Average Maturity”). The average maturity of all securities and investments of a portfolio, determined by multiplying the par or principal value of each security or investment by its maturity (days or years), summing the products, and dividing the sum by the total principal value of the portfolio. A simple measure of risk of a fixed-income portfolio. Weighted Average Maturity to Call. The average maturity of all securities and investments of a portfolio, adjusted to substitute the first call date per security for maturity date for those securities with call provisions. Yield Curve. A graphic depiction of yields on like securities in relation to remaining maturities spread over a time line. The traditional yield curve depicts yields on U.S. Treasuries, although yield curves exist for Federal Agencies and various credit quality corporates as well. Yield curves can be positively sloped (normal) where longer-term investments have higher yields, or inverted” (uncommon) where longer-term investments have lower yields than shorter ones. 26 8.1.e Packet Pg. 339 Yield to Call (YTC). Same as “Yield to Maturity,” except the return is measured to the first call date rather than the maturity date. Yield to call can be significantly higher or lower than a security’s yield to maturity. Yield to Maturity (YTM). Calculated return on an investment, assuming all cash flows from the security are reinvested at the same original yield. Can be higher or lower than the coupon rate depending on market rates and whether the security was purchased at a premium or discount. There are different conventions for calculating YTM for various types of securities. Yield. There are numerous methods of yield determination. In this glossary, see also "Current Yield,” "Yield Curve," "Yield to Call" and "Yield to Maturity." Appendix C Local Agency Investment Fund Program Description The Local Agency Investment Fund (LAIF) is a voluntary program created by statute in 1977 as an investment alternative for California’s local governments and special districts and it continues today under Treasurer John Chiang’s administration. The enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code. This program offers local agencies the opportunity to participate in a major portfolio which invests hundreds of millions of dollars, using the investment expertise of the Treasurer’s Office investment staff at no additional cost to the taxpayer. This in-house management team is comprised of civil servants who have each worked for the State Treasurer’s Office for an average of 20 years. The LAIF is part of the Pooled Money Investment Account (PIMA). The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance and State Controller. The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The Board consists of five members as designated by statute. The Chairman is the State Treasurer or his designated representative. Two members qualified by training and experience in the field of investment or finance, and the State Treasurer appoints two members who are treasurers, finance or fiscal officers or business managers employed by any county, city or local district or municipal corporation of this state. The term of each appointment is two years or at the pleasure of the appointing authority. All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer’s Office takes delivery of all securities purchased on a delivery versus payment basis using a third party custodian. All investments are purchased at market and a market valuation is conducted monthly. 27 8.1.e Packet Pg. 340 Additionally, the PMIA has Policies, Goals, and Objectives for the portfolio to make certain that our goals of Safety, Liquidity and Yield are not jeopardized and that prudent management prevails. These policies are formulated by investment staff and reviewed by both the PMIB and the LIAB on an annual basis. The State Treasurer’s Office is audited by the Bureau of State Audits on an annual basis and the resulting opinion is posted to the STO website following its publication. The Bureau of State Audits also has a continuing audit process throughout the year. All investments and LAIF claims are audited on a daily basis by the State Controller’s Office as well as an in-house audit process involving three separate divisions. Under Federal Law, the State of California cannot declare bankruptcy, thereby allowing the Government Code Section 16429.3 to stand. This Section states that “moneys placed with the Treasurer for deposit in the LAIF by cities, counties, special districts, nonprofit corporations, or qualified quasi-governmental agencies shall not be subject to either of the following: (a) transfer or loan pursuant to Sections 16310, 16312, or 16313, or (b) impoundment or seizure by any state official or state agency.” During the 2002 legislative session, California Government Code Section 16429.4 was added to the LAIF’s enabling legislation. The Section states that “right of a city, county, city and county, special district, nonprofit corporation, or qualified quasi-governmental agency to withdraw its deposited moneys from the LAIF, upon demand, may not be altered, impaired, or denied in any way, by any state official or state agency based upon the state’s failure to adopt a State Budget by July 1 of each new fiscal year.” The LAIF has grown from 293 participants and $468 million in 1977 to 2,447 participants and $23.0 billion at the end of May 2017. State Treasurer’s Office Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 916)653-3001 http://www.treasurer.ca.gov/pmia-laif 28 8.1.e Packet Pg. 341