CITY OF BAKERSFIELD ADOPTED BUDGET FY 2007 – 08 MAYOR Harvey L. Hall CITY COUNCILMEMBERS Irma Carson Councilmember, Ward 1 Susan M. Benham Councilmember, Ward 2 Ken Weir Councilmember, Ward 3 David R. Couch Councilmember, Ward 4 Harold W. Hanson Councilmember, Ward 5 Jacquie Sullivan Councilmember, Ward 6 Zack Scrivner Councilmember, Ward 7 Submitted by Alan Tandy City Manager CITY OF BAKERSFIELD EXECUTIVE STAFF Alan Tandy City Manager Virginia Gennaro City Attorney John W. Stinson Assistant City Manager Florn Core Water Resources Manager Ron Fraze Fire Chief Stan Grady Development Services Director Dianne Hoover Recreation and Parks Director Donna Kunz Economic Development Director Bill Rector Police Chief Raul Rojas Public Works Director Nelson Smith Finance Director TABLE OF CONTENTS BUDGET MESSAGE Letter of Transmittal……………………………………………………… v Distinguished Budget Presentation Award……………………............ xxiii Organizational Chart…………………………………………………….. xxv Employee Incentive Program…………………………………………… xxvi BUDGET SUMMARIES………………………………………………... 1 General Background…………………………………………………….. 2 Exhibits General Fund – Overview……………………………………………... 11 General Fund Graphs………………………………………….. ……... 12 Operating Budget Graphs……………………………………………... 13 Operating Fund Distribution Graphs…………………………………. 14 Revenue Sources – All Funds Graph………………………………... 15 Appropriations by Function – All Funds Graph ……………………... 16 Departmental Appropriations by Fund………………………............. 17 General Fund – Appropriations by Department…………………….. 21 Financial Summary – All Funds………………………………………. 23 Estimated Balances – June 30, 2008………………………………... 27 Interfund Transfers – Summary………………………………………. 28 Interfund Transfers – Detail…………………………………………… 29 FY 2007-08 Appropriations Limitation……………………………….. 30 REVENUES………………………………………………………………….. 31 Exhibits Revenue Charts………………………………………………………… 34 General Fund – Revenue by Source………………………………… 37 Estimated Revenue by Fund………………………………………….. 39 Multi-Year Comparison of Revenues and Appropriations…………. 40 Multi-Year Comparison of Operating Fund Distribution……………. 42 LEGISLATIVE……………………………………………………………… 43 Legislative………………………………………………………………… 44 Mayor & City Council…………………………………………………….. 46 i TABLE OF CONTENTS (Continued) EXECUTIVE........................................................................................... 51 City Manager……………………………………………………………… 54 City Clerk………………………………………………………………….. 57 Human Resources……………………………………………………….. 60 Risk Management………………………………………………….......... 64 Information Technology…………………………………………………. 66 FINANCIAL SERVICES……………………………………………….. 71 Administration…………………………………………………………….. 74 Accounting and Reporting………………………………………………. 76 Treasury…………………………………………………………………… 78 Purchasing………………………………………………………….......... 80 CITY ATTORNEY………………………………………………………… 83 POLICE SERVICES……………………………………………………... 93 Headquarters……………………………………………………………... 97 Support Services…………………………………………………………. 99 Operations………………………………………………………………… 104 Investigations……………………………………………………………... 108 FIRE SERVICES…………………………………………………………... 115 Administration…………………………………………………………….. 119 Fire Safety………………………………………………………………… 122 Fire Suppression…………………………………………………………. 124 PUBLIC WORKS…………………………………………………………..127 Administration…………………………………………………………….. 135 Thomas Roads Improvement Program (TRIP)……………………….. 137 Engineering……………………………………………………………….. 139 General Services…………………………………………………………. 143 Streets…………………………………………………………………….. 146 Equipment………………………………………………………………… 149 Wastewater……………………………………………………………….. 152 Solid Waste………………………………………………………............. 155 WATER RESOURCES…………………………………………………. 159 Agricultural Water………………………………………………………… 162 Domestic Water…………………………………………………………... 165 ii TABLE OF CONTENTS (Continued) RECREATION AND PARKS………………………………………... 167 Administration…………………………………………………………….. 170 Parks………………………………………………………………............ 172 Recreation………………………………………………………………… 175 DEVELOPMENT SERVICES……………………………………….. 179 Planning……………………………………………………………........... 182 Building……………………………………………………………………. 184 ECONOMIC/COMMUNITY DEVELOPMENT………………. 187 Community Development……………………………………………….. 192 Economic Development…………………………………………………. 196 NON-DEPARTMENTAL………………………………………………..199 SPECIAL FUNDS………………………………………………………… 201 Special Revenue Funds…………………………………………………. 201 Internal Service Funds…………………………………………………... 211 Fiduciary Fund……………………………………………………………. 214 Capital Improvement Program Funds………………………………….. 216 Debt Service Funds……………………………………………………… 223 Schedule of Long-Term Debt Outstanding……………………………. 226 Schedule of Long-Term Debt Maturities……………………………..... 227 ENTERPRISE FUNDS…………………………………………………. 229 REDEVELOPMENT FUNDS………………………………………… 239 CAPITAL IMPROVEMENT PROGRAM……………………..... 249 Letter of Transmittal ……………………………………………………... 249 Capital Improvement Program………………………………………….. 255 Exhibits C.I.P. Summary by Fund Chart……………………………………….. 263 Key to Funding Codes…………………………………………………. 264 Infrastructure Graphs………………………………………………….. 265 CIP Five-Year Plan Summary by Department………………………. 266 CIP Five-Year Plan Funding Summary……………………………… 267 CIP Five-Year Plan Department Detail………………………………. 268 iii TABLE OF CONTENTS (Continued) APPENDICES………………………………………………………………. 279 2005 City Council Goals and Guiding Principles……………………... 281 City Budget Process……………………………………………………... 302 Operating Budget………………………………………………………… 304 Basis of Budgeting and Accounting……………………………………. 305 Investment Policy………………………………………………………… 307 Budget Amendment Process…………………………………………… 308 Exhibits City Council Ward Boundaries Map………………………………….. 292 Miscellaneous Statistics……………………………………………….. 293 Miscellaneous Statistics Graphs ……………………………………... 294 Multi-Year Comparison of Assessed Value…………………………. 295 Assessed Valuation of Principal Taxpayers…………………………. 296 Multi-Year Comparison of Per Capita Income………………………. 297 Multi-Year Comparison of Building Activity………………………….. 298 Multi-Year Comparison of Building Permits…………………………. 299 Personnel Complement by Division………………………………….. 300 Budget Calendar……………………………………………………….. 303 GLOSSARY…………………………………………………………………. 311 iv BUDGET MESSAGE FROM CITY MANAGER v Honorable Mayor and City Council FY 2007-08 Adopted Budget - Letter of Transmittal July 1, 2007 Page 2 As a result of decreased construction activity, staff is recommending that six vacant positions in the Building Department related to development activity be eliminated. Some positive budget trends indicate that there are currently few threats of State budget actions which might negatively impact City finances. Further, the passage of the recent State bond measures may provide additional road funding and a variety of grant opportunities for City transportation, housing, parks, water resources-related infrastructure improvements, and capital projects. Staff is actively pursuing these funding opportunities. The Thomas Roads Improvement Program (TRIP) projects will be continuing to progress. The City paid off the water bonds for the purchase of the Kern River water rights in December 2006, so water funds previously committed to debt service may be committed to other water related projects. We have been able to address a major portion of the City’s long-term office space needs with the purchase of the Borton, Petrini and Conron Building. The relocation of departments to that facility has already begun and will continue over the next few years as leases expire and space becomes available. Departments have budgeted for costs associated with moves to the new facilities where applicable for this upcoming fiscal year. We have also included some capital funds to make the building more energy efficient and cost effective to operate. The extreme increase in construction costs that we have experienced during the construction boom seems to be slowing and, hopefully, bid prices will improve. The adopted budget will support the efforts of our employees to meet Council Goals by providing the staffing and other resources required to provide quality municipal services to our citizens. COPING WITH THE CHANGING PACE OF GROWTH Even with the slow down in home construction, the City of Bakersfield continues to experience a steady pace of growth, which has presented both challenges and opportunities. During the past year approximately ten square miles were added. Several developers with large tracts of land have annexed or are in the processing of annexing their property and have entered into development agreements with the City. Over the next few years these projects are likely to proceed with development. The budget provides funds towards several key projects, including transportation, fire stations, parks and recreational facilities, wastewater treatment plant expansion, as well as various repair and renovation projects. vi Honorable Mayor and City Council FY 2007-08 Adopted Budget - Letter of Transmittal July 1, 2007 Page 3 NEW POSITIONS FOR FY 2007-08 The FY 2007-08 budget includes a historically normal number of position additions. The net increase in the number of positions from FY 2006-07 to FY 2007-08, including three (3) mid-year additions, will total forty-three (43) as follows: Human Resources – One (1) Clerk Typist. Information Technology – One (1) GIS Analyst, one (1) Network Systems Analyst, and one (1) Programmer Analyst. City Attorney – One (1) Administrative Assistant I/II, added mid-year in FY 2006-07. Police – Eight (8) Police Sergeants and three (3) Police Service Technicians. One (1) Clerk-Typist I/II and one (1) Police Officer were added mid-year in FY 2006-07. Fire – Three (3)