2019-20 City of Ukiah Budget Story

Budget Story Providing Value To Our Quality of Life For Period 7/1/2019 - 6/30/2020

Contents

3

Message from the Mayor, Maureen Mulheren

4

Our Community

5 6

Department updates and a look ahead

Message from the City Manager, Sage Sangiacomo

16

Budget breakdown

18 25 Message from the Contacts Finance Director, Daniel Buffalo

The full budget document can be found here: 2019-20 Budget *Best used in Chrome*

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City of Ukiah Mayor Maureen Mulheren

Maureen Mulheren -Mayor

I am excited for you to review this year’s budget. For many years the general public has stuggled to understand the City budget and called for more transparency and ease of use. The City Council has worked with the Team Members in the Finance Department to make sure that everyone can access and understand the City of Ukiah Budget. Our residents, our tax payers, and our team members trust the City with the use of their hard earned dollars and using our resources wisely is a key priority. I hope that you use this document as a view finder into the inner workings of the City and that it leads you to see how vital each of our team members are and how all of the departments work together for the betterment of our community. It has been a pleasure to serve our growing community and be part of a devoted team of professionals at the City of Ukiah. The 2019/20 budget is a reflection of continued projects and exciting progression for the Ukiah Valley.

-Maureen Mulheren, Mayor

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Our Community Community Profile

at least some

Ukiah, incorporated in 1876, operates a full range of municipal functions including public safety, public works, community development, and community services. Furthermore, the City of Ukiah provides electric, water and wastewater utilities for its residents and operates an airport, golf course, museum, and conference center.

government. In addition to serving as the policy makers for the community, the City Council is also responsible for numerous land use decisions within its borders, including the General Plan. The City Council appoints the City Manager and City Attorney, and all members of advisory boards and commissions.

college education

Government

Education

Demographics • Over 50% of labor force have attained

• 16,075 Residents 104,452 within 30 Minutes of Ukiah • 4.67 square miles Within City Limits

Ukiah is a general law city operated under a council-manager form of government in which policy is set by a five-member council, elected at large to four-year overlapping terms. Council members must be residents of the City. The positions of Mayor and Vice-Mayor are chosen by the Council through its own policy and rotates among its members. The Mayor conducts the Council meetings and represents the City in ceremonial occasions.

The Council serves as the policy board for the municipality. It provides direction, establishes goals, and sets priorities for city

The Ukiah area offers big-city educational opportunities in a small-town environment. Ukiah Unified School District provides traditional public schools, as well as a Spanish-immersion elementary school, a Montessori-based charter school, a Waldorf based charter school, an independent study-focused charter school, and more.

Other options include a private Waldorf school, a private Catholic K-8 school, and the Instilling Goodness/ Developing Virtue Buddhist school. Furthermore, the University of California Davis’s Hopland Research and Extension Center is one of nine operated by the UC Division of Agriculture and Natural Resources, and Mendocino College, with its 127-acre campus enrolls over 5,000 students each term.

Lifestyle and recreation

Ukiah is the only place where you can sip wine from America’s greenest wine region or sample a locally brewed ale, hike amongst some of the tallest redwood trees in the world, and relax in a naturally warm and carbonated mineral spring…all in a day. Ukiah is where the redwoods meet the vines, a place where year-round events draw locals and visitors together, and where the entrepreneurial spirit is alive and well.

In the historic downtown, Ukiah’s up-andcoming dining scene and the surrounding wineries have garnered attention from Wine Spectator, VIA Magazine, Wine Enthusiast, and more. Sunset Magazine praised Ukiah’s “19th-century architecture, charming treelined neighborhoods, and its laid-back vibe.”

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I am proud to represent the team members at the City of Ukiah, who are dedicated to protecting a quality of life that supports the diverse needs of our citizens and businesses while preserving the unique character of the Valley. Our team has a strong sense of purpose because we live and work among our family, friends, and neighbors who rely on our services. We continue to foster this culture by embedding the core values of professionalism, service, teamwork, innovation, and safety into every aspect of our work. Together, we are committed to tackling our biggest challenges and preparing our community for a vibrant future.

“Our team

has a strong sense of purpose because we live and work among our family, friends, and neighbors who rely on our services.�

The adopted budget presented in the following pages represents a balanced fiscal spending plan for services and capital improvement projects as directed by the policies and objectives of the City Council. This plan reflects our continued commitment by ensuring that key services such as police, fire, utilities and quality infrastructure for streets, are provided to safeguard a well-maintained community.

The City of Ukiah provides a diverse set of municipal services in a business model that is organized to promote efficiency and leverage an economy of scale to keep administrative overhead costs low. These costs are shared by all departments through an allocation plan that is detailed within this budget.

This budget is accompanied by a five-year Capital Improvement Plan (CIP) that strategically identifies future infrastructure projects and vehicle/equipment purchases. Capital improvements preserve and enhance the quality of life in Ukiah by methodically planning for our future. The CIP will invest in our community with enhanced parks and public spaces, continual street and transportation improvements, and utility system upgrades. Complete CIP project descriptions accompany this budget.

Sage Sangiacomo -City Manager The 2019-20 budget continues to build on previous successes while remaining financially sensible. I look forward to ongoing engagement with our community as we review, improve, and streamline operations, and invest in public infrastructure.

-Sage Sangiacomo.

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Valuing Our Safety

The Ukiah Police Department is responsible for general public safety and public order for Ukiah’s residents and visitors, and we strive to improve the quality of life in our neighborhoods. Our officers serve by patrolling the City and by responding to calls for police service, performing crime prevention activities, conducting investigations, promoting traffic safety, and apprehending offenders. Dispatch provides dispatching services to Fire, Electric, Water, Wastewater, and other City of Ukiah services, Ukiah and Fort Bragg Police, as well as emergency notifications to the community.

The Fire Department provides all-hazard response, preparedness, and prevention services to protect life and property from fire and all other emergencies. This is accomplished through public education, fire code management, fire suppression, paramedic level (ALS) prehospital emergency medical care, hazardous condition mitigation, and rescue services.

Looking Ahead

Cost of Service: Police and Fire Direct Personnel $11,186,928 Materials, services, and other operating 2,314,350 Grants, loans, and other assistance Debt service 67,825 Capital outlay/CIP 131,259 Total direct 13,700,362 Indirect Administration and overhead 763,049 Internal service use 1,819,186 Total indirect 2,582,235 Total cost of service $16,282,598

68.7% 14.2% 0.4% 0.8% 84.1% 4.7% 11.2% 15.9% 100%

The majority of this increase is due to additional staffing, retirement plan costs, and the replacement of aging fire safety equipment. The City will continue to work with the Ukiah Valley Fire Authority to provide unified operational services to the greater Ukiah Valley.

Additionally, the amount needed to provide valley-wide fire services has increased, as we work to match service levels of the City with that of the District. Quite simply, property tax revenues collected by the District for the unincorporated areas are insufficient for fire protection and medical support services. The City has committed its own general fund resources to ensure the District, as a partner, can meet the needs of its citizenry. In order to support sustainability in the years I take the most pride in “Our loyal and to come, long-term strategies to dedicated staff of course! We have many meet the public safety service needs of our community must be employees in the dispatch center and the developed in collaboration with the police department who have been partnering services providers and here for over 10 years, even 20. These the County of Mendocino. people really care about our organization

The Police Department’s budget includes appropriation for 34 sworn police officers, but is presently staffed at only 26 officers. The Department has fewer officers today than in the 1990’s when staffing remained consistent at 28 sworn officers. The Department strives to provide consistent and quality law enforcement services despite staffing challenges and will continue to evaluate effective recruiting methods as well as how personnel are deployed to best maintain this level of service to the community.

The general fund will continue to be committed to funding public safety with the use of Measure P proceeds in 19-20.

and our community. We may not always agree, but we are a family.”

-Tracey Porter, Police Communications & Records Supervisor

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DID YOU KNOW? Ukiah has a unique Golf Course where you can see spawning steelhead, grazing deer, and wild turkeys while you play golf.

Cost of Service: Public Works Direct Personnel Materials, services, and other operating Grants, loans, and other assistance Debt service Capital outlay/CIP Total direct Indirect Administration and overhead Internal service use Total indirect Total cost of service

Looking Ahead

$1,255,666

11%

544,015

5.0%

- 0.0% 8,975,997 81% 10,228,325 97% 113,060 228,609

1% 2%

3% 341,669 $11,117,347 100%

Measure Y, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2016, is a general (unrestricted) transaction and use tax. Similar to Measure P, this general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax but was accompanied by an advisory Measure Z (2016).

The Streets crew, a division of the Public Works Department, is dedicated to maintaining over 53 centerline miles of two-way streets within the City of Ukiah. The crew maintains street lights, signs, markings, pothole repairs,

graffiti removal, storm drain maintenance, and street sweeping.

Ukiah's street maintenance is currently funded through the General Fund, Measure Y, and grant funding when available.

In addition to the amounts collected from Measure Y, we anticipate the receipt of additional gas tax and special appropriations for infrastructure from the state in the future. The increase in revenue will not be large, but those additional resources will be used to enhance projects currently scheduled, as well as future projects supported by Measure Y.

Valuing Our Streets and Infrastructure Infrastructure development will continue with the construction of three of the four phases of the recycled water system and ongoing electrical system improvements. In addition, revenues from Measures Y and Z will ensure there is a sustained effort to rebuild and maintain our local streets with more than $3 million dedicated in this year’s budget.

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Valuing Our Water Resources The Water Resources Department is responsible for the production, treatment and distribution of drinking water; the collection, treatment and disposal of wastewater; and for meeting its conservation goals, while simultaneously facilitating the disposal objectives of wastewater disposal in an economical and environmentally sustainable way.

Cost of Service: Water Resources Direct Personnel $4,200,059 22% Materials, services, and other 17% operating 3,279,050 Grants, loans, and other assistance Debt service 54% Capital outlay/CIP 10,266,778 Total direct 17,745,887 94% Indirect 2% Administration and overhead 451,520 4% Internal service use 677,772 6% Total indirect 1,129,292 100% Total cost of service $18,875,179

Looking Ahead

Water and wastewater enterprise activities will continue to experience increased costs; however, the restructured water rate schedule will sustain its operations and capital plans, with a focus on enhanced maintenance. Wastewater activities will focus on maintenance as well – including inflow and infiltration (I&I) identification/mitigation, infrastructure rehabilitation, and addressing disposal costs.

A thorough evaluation of rates for wastewater services must be completed

for the enterprise to find sure footing moving forward. Additionally, both water and wastewater are participating in the effort to implement recycled water in the City of Ukiah. It’s a matter of disposal for the wastewater system and one of increased capacity for the water enterprise. For both, it is an effort to exercise best practices in municipal water and wastewater services and in environmental stewardship.

Did you Know?

Ukiah is home to the World’s Largest Redwood Tree Service Station

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providing the best services possible. Their continual “I value being supported by my responsiveness identifying department and management. We are and answering challenges encouraged to grow professionally and opportunities will have a through trainings, conferences and positive impact for many generations to come. trying new ideas. Hard work is The City of Ukiah Parks recognized and I have been able to Department is responsible for grow in my department from starting the maintenance of 16 parks, as a Community Services Assistant, the Ukiah Municipal Receptionist/Clerk to now the Swimming Pools, five Recreation Coordinator.” sporting areas, five tennis courts, and also provides -Marianne Davison, Recreation Coordinator maintenance for nine parking lots, the City sub stations, Successor Agency Looking Ahead Cost of Service: Parks, Budilings and properties, former Redevel Community Services is committed to Grounds and Recreation opment housing properties, the Civic Direct providing recreational programs, events, Center, Ukiah Railroad Depot property, $2,483,074 45% Personnel activities and facilities that will enhance Ukiah trail systems including the Rail Materials, services, and other the quality of life for all ages. We provide Trail, and the School Street planters.

1,063,144 19% operating programming and facilities of the highest Additionally, the Parks Department Grants, loans, and other quality. The Community Service divimaintains all trees located on City - sions take pride in partnerships and assistance property including those located on City - collaborations with other governmental Debt service Streets. The department also provides 1,364,957 25% agencies, schools, community-based Capital outlay/CIP staffing support for Sundays in the Park, 90% 4,911,175 Total direct organizations, neighborhood groups Family Fun in the Sun, PumpkinFest, Indirect and the business sector for delivery of and other community events. Parks 5% Administration and overhead 254,240 programs that serve our community. The will be focusing on the continued 6% 315,164 Internal service use key to Community Services’ successful renovations to Vinewood and Riverside 569,404 10% Total indirect framework is our staff and their indiParks. Two grants have been applied for $5,480,579 100% vidual and collective commitment to Total cost of service to continue improvements to Vinewood and Oak Manor Parks.

Valuing Our Parks and Recreational Opportunities

The City of Ukiah’s Community Services department offers an array of programs, services and facilities to the residents of our city and the broader communities. The department is subdivided into eight segments: Ukiah Valley Conference Center, Alex Rorabaugh Recreation Center, Ukiah Valley Golf Course, Grounds and Maintenance, Grace Hudson Museum and Nature Education Center, Observatory Park, Parks, Recreation & Aquatics.

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Valuing Our Community’s Growth

The Community Development Department carries out three primary functions: Building Permits and Code Enforcement, Housing services, and Planning services. The Building Services Division regulates construction and development to safeguard and ensure the health and safety of the public. To ensure compliance with building codes, the Division processes permits, conducts plan review, and performs building inspections. The Planning Division assists property owners, developers and the public to ensure that future development and changes are implemented in accordance with regulations and ordinances adopted by the community. The Housing Division assists in meeting the housing needs of Ukiah.

Cost of Service: Community Development Direct Personnel $876,114 80.8% Materials, services, and other operating 85,200 7.9% Grants, loans, and other assistance Debt service Capital outlay/CIP Total direct 961,314 88.6% Indirect Administration and overhead 59,808 5.5% Internal service use 63,538 5.9% Total indirect 123,346 11.4% Total cost of service $1,084,660 100%

Looking Ahead

Community Development assists property owners, developers, and the public in matters related to the use and development of private property. This includes: providing information on the regulations and guidelines that apply to property and projects, reviewing and processing of building permits, providing assistance on project design and development, processing land use entitlements for private and public development proposals, and performing environmental review associated with development proposals.

Long Range Planning focuses on the

development and implementation of the City of Ukiah General Plan. The General Plan consists of six State of California mandated Elements and a State-certified Housing Element. Long Range Planning also develops, implements, and/or assists in the creation of special programs and projects such as the Airport Industrial Park Planned Development and creek master plans and the maintenance of the Zoning ordinance. Such efforts reflect current State law and modern planning principles.

From processing land use entitlements, to working with developers and businesses in navigating the permit process, to implementing the housing element of the General Plan, we are here to serve you, the citizenry of Ukiah.

“Helping our community stay safe is at the forefront of my mind. Helping design professionals, contractors, and homeowners build a safer Ukiah one building project at a time.�

-Steven Oropeza, Building Inspector II

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Staff has been very active in pursuing a regional economic development approach. As the “An easy way to make a positive step County seat and the business, forward for our town is to get engaged with medical, and education hub any of the varied service groups in Ukiah. for parts of three counties, we From community gardens, to park volunteer recognize that we serve a much work days, to traditional service groups, larger population base than just our residents. While this there is something for everyone! If we each often means increased costs and pitch in a small amount of time imagine the workload for some departments, overall benefit to our town.” there is also a benefit for our business community and an expanded tax base for the City’s General Fund. Therefore, it -Maya Simerson, Project and Grant Administrator behooves us to look beyond our city limits for collaborations.

Looking Ahead Staff has utilized CDBG funds to provide Cost of Service: Economic Development The City has emerged as a leader for low-interest loans and technical assistance economic development activities in Direct for small businesses. Also, we invest in Mendocino County. Partnerships with $70,093 8% Personnel partnerships with organizations including both private and public entities is the Materials, services, and other the Greater Ukiah Chamber of Commerce, cornerstone of our approach.

22% 193,550 operating the Ukiah Main Street Program, the West The City’s economic development Grants, loans, and other Company, and the Economic Development efforts are focused primarily on busi17% 150,000 assistance and Financing Corporation, who provide ness retention and recruitment and Debt service other specialized services to the business the partnership with the Community 430,000 49% Capital outlay/CIP community.

Development Department to facilitate 97% 843,643 Total direct Ukiah is well poised for strong economic the development of housing, both Indirect growth in the coming years. Our Ecomarket rate and affordable. The 1.6% 14,343 Administration and overhead nomic Development team is committed strength of our business community 1.8% 16,140 Internal service use to facilitating that growth in a way that relies on the a vailability of housing for 30,483 3% Total indirect preserves Ukiah’s unique character and its its workforce, therefore, these two $874,126 100% Total cost of service balance between large industry and small, efforts go hand in hand. independent businesses.

Valuing Our Economic Health The Economic Development team has continued to significantly improve the level of support for business activity, resulting in the creation and retention of businesses and jobs. By leveraging multiple cross-department disciplines on an as-needed basis, the team maximizes staff expertise while efficiently addressing business and economic development needs.

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Valuing Our Housing and Supportive Opportunities The Housing Division of the Community Development administers and implements the City’s federal, state, and local housing and community development programs to improve and expand the City’s housing stock and assist in the development of economic opportunities for residents. .

Cost of Service: Housing

Looking Ahead

developers.

In January 2018, the City released its first Notice of Funding Availability for $500,000.

Three applications were received, which if all proposed units are built, would lead to the development of 151 new affordable housing units (two have approved entitlements, and one is actively pursuing financing). Also in 2018, the City adopted a residential density calculation ordinance applicable to mixed-use and medium density residential projects, designed to increase density by at least one to three units per acre. In 2019, the City initiated an update to its Housing Element as required by State Law. In preparing this 2019-2027 Housing Element Update, the City consolidated existing strategies and policies into one plan presenting a balanced and diverse array of policies covering housing needs identified “My favorite experience was during the Update process, input from the public, and four overall areas of participating in the Leadership concern: constrcution , rehabilitation, Academy. Having the opportunity to conservation, and administration. take part in something so grand has In 2018-2019, the City of Ukiah was helped me grow professionally and listed by the State Department of personally. I have never had more Housing and Community Development self-confidence than I do now.”

(HCD) as one of 12 cities and counties in the State, out of 534, in full compliance with its Housing Element responsibilities. HCD also recognized the City as a Best Practice Community -Alicia Tlelo, Assistant Planner in late 2019 due to its creation of the Housing Trust Fund.

Direct Personnel $0 0.0% Materials, services, and other operating 116,500 6.9% Grants, loans, and other assistance 1,566,500 92.8% Debt service Capital outlay/CIP Total direct 1,683,000 99.7% Indirect Administration and overhead 2,993 0.2% Internal service use 2,295 0.1% Total indirect 5,288 0.3% Total cost of service $1,688,288 100%

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Over the last approximately five years, Ukiah has experienced significant demand for housing. To address this demand, the City Council adopted a Housing Strategy in 2017 desinged to facilitate the production of new housing units for lower and middle income residents. Part of implementation of this strategy involved the creation of the Ukiah Housing Trust Fund, a new loan fund to incent the production of affordable housing units. The other part proposed regulatory relief, outreach to developers, and streamlining the development process for builders and

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• Custom design services • Maintenance and operation of Ukiah’s street lighting system "As a member of the Electric team I strive • Operation and mainteto complete my work to the best of my nance of the Lake Mendocino Hydroelectric Plant abilities. I find pride in my work because I Our primary objective is to engage in the success of projects with exceed the expectations of other project members and look forward the Ukiah community, electric to viewing the successful end of a project.” utility customers, and City Council with the delivery of electric energy that is safe, reliable and at a value that promotes the economic health - Diann Lucchetti, Electric Utility Program Coordinator of the Community. This is accomplished through indiLooking Ahead Cost of Service: Electric Utility vidual and team development The City’s Electric Utility provides assuring a highly skilled and professional Direct low-cost, high-quality energy services staff ready to meet the Ukiah’s needs. $3,555,922 17% Personnel that power our homes, businesses, and Further, we strive for the highest level Materials, services, and other daily lives. of customer service possible.

Making 49% 10,038,881 operating We take pride knowing that we are able sure you have the power to enjoy all that Grants, loans, and other to provide these services at rates that are Ukiah has to offer is our ultimate goal.

- 0.0% assistance as much as 30 percent lower than other - 0.0% Debt service for-profit entities, such as PG&E. 5,610,000 27% Capital outlay/CIP The entire compliment of servivces we 94% 19,204,803 Total direct provide include: Indirect • High voltage construction & mainte4% Administration and overhead 762,400 nance 2% 520,537 Internal service use • Procurement of wholesale power 1,282,937 6% Total indirect • Planning and operation of the City’s $20,487,740 100% Total cost of service electric distribution system • Planning and advanced engineering for services

Valuing Our Energy The Electric Enterprise Fund provides 24-hour, 365-day response to emergency service calls for customer power problems, and outages. Additionally, this team is responsible for making high voltage power lines safe for Fire & Police personnel at structure fires, automobile accidents and to make other situations where electric lines are near emergency crews.

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Valuing Our Other Quality of Life Services In addition to the services already presented, the City provides numerous other services that benefit our community. These include airport operations, the Ukiah Municipal Golf Course, the Ukiah Valley Conference Center, and Solid Waste Management.

Cost of Service: Airport, Golf, and Conference Center

Looking Ahead

future.

The Ukiah Valley Golf Course, leased by 12.2% Tayman Park Golf Group, provides both a physical activity along with social benefits 17.3% to persons of all ages. The Golf Course plans to continue working with the City of Ukiah toward providing additional food and beverage services and other various 67.5% renovations that will benefit the golfers 97.0% and the community as well as renting out the Todd Grove room.

1.8% The Ukiah Valley Conference Center 1.2% provides a variety of rooms for meetings, 3.0% trainings, weddings and parties of all 100% group sizes. The Conference Center continues to make improvements to the Conference Center such as the purchase of new chairs, increase online “Most people don’t realize the exposure, as well as modernize huge role the Airport and it’s City signage for the rear of the workers contribute during building. The Conference emergencies to Lake and Center is highly used and Mendocino counties. If the Airport continued improvements are was not available for firefighting needed to ensure continued rental use. operations, the closest airport is The Landfill Closure Project, Santa Rosa, which is about 15 to part of Waste Management, is 20 minutes between each load.” still ongoing. Final construction activities are scheduled to occur in Spring of 2020.

-Ken Ronk, Airport Assistant

Direct $687,605 Personnel Materials, services, and other 980,058 operating Grants, loans, and other assistance Debt service 3,815,000 Capital outlay/CIP 5,482,663 Total direct Indirect Administration and overhead 103,471 65,483 Internal service use 168,955 Total indirect $5,651,618 Total cost of service

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The Ukiah Municipal Airport provides an alternative form of transportation and emergency access in and out of Ukiah. To support this, the major activities of the Airport support the fueling of all forms of aircraft. The operations and maintenance activities include the management, supervision and training of staff as well as the upkeep of facilities and equipment.

This upcoming year, the Airport plans to install a 20,000-gallon Jet A Fuel Tank.

This will enable the Airport to meet the high demand of fuel sales during the fire season. Staff feels that increasing fuel capacities will provide better service and increased revenue for the Airport in its

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-City Council Cost of Service: General Government Direct Personnel Materials, services, and other operating Grants, loans, and other assistance Debt service Capital outlay/CIP Total direct Indirect Administration and overhead Internal service use Total indirect Total cost of service

Looking Ahead

$73,246

43.7%

7,250 80,496

4.3% 48.0%

7,602 79,336 86,938 $167,434

48.1% 51.9% 100%

The City focuses on efficient, effective and economical service delivery that has meaningful and positive impacts on health, comfort, and happiness. This focus supports the City’s efforts in making difficult decisions among competing priorities while delivering and demonstrating value in the services provided.

The City continues to ensure Ukiah residents get the services they need and want, as well as getting value for the tax dollars spent delivering those services.

Innovation is a key element in improving service delivery.

The City utilizes a cost allocation plan as a means of capturing the total costs of providing services and a method for distributing administration and internal service costs across the various operations that utilize the corresponding services. The cost allocation plan establishes separate basis of allocation for each indirect activity and is founded on an approach that is reasonable, fair, and equitable. Because services and utilization of services can change over time, the City Council established an adhoc to work with staff on the development of an ongoing audit plan to review the bases of allocation and consider modifications when warranted.

Valuing Our General Governance

The legislative body for the City of Ukiah is the City Council. The same body acts as the governing authority for the Successor Agency to the City of Ukiah Redevelopment Agency. The City Council for the City of Ukiah, comprised of five council members, provides policy direction to the City Manager. The Council adopts ordinances to control the affairs of the City, as well as oversees the fiscal affairs of the City and approves and adopts the annual City budget. The City of Ukiah Planning Commission is a committee of five persons appointed by the Ukiah City Council to review matters related to planning and development. Costs of general governace include administration comprised of the City Manager’s Office, City Clerk, City Attorney, Finance Department, Human Resources and Risk Management, and City Treasurer.

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11%

Budget by the Numbers

16,075 221 17

16%

Residents in C ity L imits

F ull T ime Employees

Public Safety $16,282,598

8% Admin and Internal Services

C ity D epartments

$100,758,203

$8,060,657

12%

totaL adopted Budget 2019-20

Other Enterprise Operations

$12,028,030

5% Airport Operations

$5,077,759

20% Electric Operations

$20,487,740

The Ukiah Regional Airport is comprised of 4,423 ft. of runway and has aircraft on site.

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Public Works

$11,117,347

0.4%

General Government and Administration

$167,434

5% Parks, Buildings and Grounds, and Recreation

$5,480,579

1% Community Development

The City of Ukiah maintains parks and facilities for the benefit of our community.

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$1,084,660

0.9% Economic Development

$874,126

1.7%

Housing and Support Programs

$1,688,288

20% Water Resources

$18,875,179

Revenue by the Numbers

$3,234,000

estimated measuRe “p” Revenue FisCaL yeaR 2019-20

30.7% GRANT

CONTRIBUTION

FRom state

25.2%

Budget Revenue F rom T axes

$3,220,000

estimated measuRe “y” Revenue FisCaL yeaR 2019-20 City of Ukiah Budget Story 2020 /

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Message From the Finance Director

“We look forward to finding more innovative and valueadded ways of delivering services to the community in which we all live, work and play.”

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T

HE Finance Department is responsible for the fiscal health of the City as well as the collection, analysis, and dissemination of financial information to the citizens of Ukiah, City Council, City management, departments, and other stakeholders.

The City’s overall financial condition continues to reflect a period of positive growth. However, our budgeting approach remains conservative, estimating and committing resources as a means to ensure structural stability with changing economic conditions.

The Management Team has been dedicated to cost savings whenever possible and watchful of their expenditures so that value to the Ukiah citizenry is maximized. This has led to a projected year-end surplus and replenishment of the City’s general fund reserve, which was depleted in the prior fiscal year as the City completed several large capital projects. This reserve will be used to provide the City Council with flexibility to meet unforeseen operating needs and challenges while ensuring that services are maintained in the event of an eventual economic recession. We estimate the total general fund reserves to end the year at 19.1 percent of revenues.

Management has proposed a balanced budget in the general fund and most of the other major funds for fiscal year 2019-20. The wastewater fund, however, is experiencing stress, partly due to increased operating cost but also to significant costs defending the lawsuit brought by the Ukiah Valley Sanitation District, which cost rate payers over $8.9 million in attorney and other litigation-related fees alone.

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Daniel Buffalo City Finance Director The overall City budget remains a prudent spending plan that maintains strong emphasis on value to the City of Ukiah and greater Ukiah Valley. As the City wraps up several major capital projects, we look forward to finding more innovative and value-added ways of delivering services to the community in which we all live, work, and play.

Daniel Buffalo, CPA, CGMA

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2018-19 Measure P

Measure P: Transaction and Use Tax

Measure P, passed by a simple majority (50% plus 1) of Ukiah voters in November of 2014 was a general (unrestricted) transaction and use tax. It continued a sun-setting transaction and use tax, known as Measure S (2005). Measure T (2005), passed in conjunction with Measure S, was a distinctly separate, advisory Measure indicating the voting public's preference for the use of Measure S proceeds.

The City Council has committed to using the full amount of Measure P resources for public safety.

Uses and Sources Public Safety Activities Comparative, Baseline (2015) to June 30, 2020 Expenditure Uses

by Category Police: Sworn officers Misc personnel Personnel Operations Capital Total police Fire: Firefighters: City UVFD Personnel Operations: Other Capital Total fire Total public safety

Measure P Baseline FY 2014-15

FY 2019-20

Increase (Decrease)

32 18 $6,049,608 1,866,612 186,594 8,896,287

34 19 $7,791,440 2,717,476 51,259 10,560,175

2 1 $1,741,832 850,864 135,335 2,728,031

11 6 1,506,406 516,180 530,822 30,400 2,583,807

19 3,395,488 1,902,462 344,473 80,000 5,722,423

8 (6) 1,889,082 1,386,282 (186,349) 49,600 3,138,616

11,480,094 16,282,598

4,802,504

Dedicated Revenue Sources

Measure P transaction and use tax Public safety revenue: Police Fire Other Total revenue Excess (deficiency) revenues over expenditures Other Financing Sources General revenues, general fund Remaining resources

Baseline FY 2014-15

FY 2019-20

Increase (Decrease)

2,465,521

3,234,000

768,479

1,001,861 37,235 3,504,617

1,868,058 104,700 5,206,758

866,197 67,465 1,702,141

(7,975,477)

(8,810,587)

(835,110)

7,975,477 $-

8,810,587 $-

835,110 $-

City of Ukiah Budget Story 2020 /

23

2019-20 Measure Y

Measure Y: Transaction and Use Tax

Measure Y, passed by a simple majority (50% plus 1) of Ukiah voters in November of 2016, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of twothirds of the voting public. Measure Z, passed in conjunction with Measure Y, was a distinctly separate, advisory Measure Y, indicating the voting public's preference for the use of Measure Y proceeds.

The City Council has committed to using the full amount of Measure Y resources for City streets and rights-of way.

Street Maintenance and Repair - General Fund Maintenance level Recommended amount for streets in general fund, 2018-19 Increase (decrease) from base year (b) - (a)

2019-20 $385,086 935,913 $550,827

Resources Measure Y: Transaction and Use Tax General revenues and transfers Total available for street maintenance and repair (d) + (e)

2019-20

935,913 $4,155,913

(d) (e) (f)

Analysis General fund base commitment amount (a)

2019-20 $385,086

(g)

Additional resources (c) + (d)

$3,770,827

(h)

Total recommended general fund amount appropriated to street maintenance and repair (g) + (h)

$4,155,913

(i)

Fiscal Year 2019-20 Recommended Measure Y Uses Debt service on new infrastructure borrowing Enhanced Public Works capacity - Streets Road and rights-of-way maintenance Road and rights-of-way rehab and improvement

24

$3,220,000

Project No. Cost 13001 $222,464 200,549 357,015 5,578,000

General Revenue Share $146,826 53,015 -

Other Financing Sources $304,000 2,634,187

Measure Y Share $75,638 200,549 2,943,813

$6,358,028

$199,841

$2,938,187

$3,220,000

/ City of Ukiah Budget Story 2020

(a) (b) (c)

Total Funding $222,464 200,549 357,015 5,578,000 $6,358,028

CONTACT CITY COUNCIL

CITY EXECUTIVE MANAGEMENT

Douglas Crane Vice-Mayor dcrane@cityofukiah.com

Shannon Riley Deputy City Manager sriley@cityofukiah.com

Jim Brown Council Member jbrown@cityofukiah.com

Kristine Lawler City Clerk klawler@cityofukiah.com

Juan Orozco Council Member jorozco@cityofukiah.com

Greg Owen Airport Manager gowen@cityofukiah.com

Steve Scalmanini Council Member sscalmanini@cityofukiah.com

Craig Schlatter Director of Community Development cschlatter@cityofukiah.com

Maureen Mulheren Mayor mmulheren@cityofukiah.com

Sage Sangiacomo City Manager ssaniacomo@cityofukiah.com

Tami Bartolomei Community Services Administrator tbartolomei@cityofukiah.com Mel Grandi Electric Utility Director mgrandi@cityofukiah.com Dan Buffalo Director of Finance dbuffalo@cityofukiah.com Sheri Mannion Director of Human Resources smannion@cityofukiah.com Doug Hutchison Fire Chief dhutchison@cityofukiah.com Justin Wyatt Police Chief jwyatt@cityofukiah.com Tim Eriksen Public Works Director teriksen@cityofukiah.com Sean White Water Resources Director swhite@cityofukiah.com

City of Ukiah Budget Story 2020/

25

Budget Story 2020

City of Ukiah 300 Seminary Avenue Ukiah, California 95482 www.cityofukiah.com The full budget document can be found here:

2019-20 Budget