CITY COUNCIL: Resolution Adopting Triennial Budget Fiscal Years 2008/09 Through 2010/11

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2008 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING THE FISCAL YEARS 2008/09 THROUGH 2010/11 TRIENNIAL BUDGET

WHEREAS, the City Council was presented a balanced Triennial Budget for Fiscal
Years 2008/09 through 2010/11; and

WHEREAS, the City Council held public meetings to review and receive public
comment on the Triennial Budget; and

WHEREAS, certain City financial policies (Policy C94-01) have not been accomplished
with the adoption of the Fiscal Years 2008/09 through 2010/11 Triennial Budget; and
WHEREAS, the City Council has approved certain special reserve and restricted funds
for specific purposes as defined in the Municipal Code; and

WHEREAS, the City Council authorizes deposit accounts into and from which funds are
received and disbursed, and maintained in the City’s bank account; and

WHEREAS, the City Council approves the Five-Year Capital Program; and

WHEREAS, in accordance with California Government Code Section 53646, the Triennial Budget includes the City’s Investment Policy C89-27, revised June 13, 2006;
and

WHEREAS, in accordance with Title XIII, B, of the Constitution of the State of
California, the City of Carmel-by-the-Sea has prepared its annual appropriation limit calculated by a combination of variable factors composed of the 2008 increase in the population of the County of Monterey of 1.56% and the increase in California per capita personal income of 4.29%, which together produce an estimated appropriation limit for the City of Carmel-by-the-Sea for Fiscal Year 2008-09 of $23,465,253.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Adopt Fiscal Years 2008/09 through 2010/11 Triennial Budget and place said budget on file at City Hall and on the City’s Web Site.

2. Adopt the Five-Year Capital Program.

3. Approve the City’s Work Plan for Fiscal Years 2008/09 through 2010-11.

4. Approve the proposed fee schedule changes per the City Administrator’s budget message.

5. Acknowledge that the following City budgetary financial policy (Policy C94-01) has not been met for Triennial Budget Fiscal Years 2008/09 through 2010/11: 1) The annual operating budget shall contain a current surplus (or “revenue buffer”) of at least five percent (5%) of projected expenditures, and 2) City Council Discretionary Account of at least one-half of one percent (0.5%) of total expenditures shall be maintained.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 10th day of June 2008 by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

____________________________
Heidi Burch, City Clerk

ATTEST:

_______________________
SUE McCLOUD, MAYOR


City of Carmel-by-the-Sea
Proposed Changes to Draft Budget
FY 2008-09 to 2010-11
Budget Budget Budget
2008-09 2009-10 2010-11
Revenues
Total Revenues Per Draft Budget 5/20/08 $ 1 4,354,434 $ 1 4,770,159 $ 1 4,927,443
Proposed Increases (Decreases):
Sales Tax $ ( 68,940)
Transfer (to)/from Capital Project Reserve $ 8 2,400 $ 6 7,040
Adjusted Total Revenues $ 1 4,285,494 $ 1 4,852,559 $ 1 4,994,483
Expenditures
Total Expenditures Per Draft Budget 5/20/08 $ 1 4,354,434 $ 1 4,770,159 $ 1 4,927,443
Proposed Increases (Decreases):
Capital Budget, Beach Restrooms on Scenic at 10th &
13th (Carver Schicketanz Architects proposal, Phase
1) $ 6 5,500
Capital Budget, Police Dept Cameras (purchase 2
cameras sooner, from 2010-11 to 2008-09) $ 1 2,960 $ ( 12,960)
Capital Budget, Finance Software/Operating System
(schedule project expenses to start late FY 09-10 and
complete proj in FY 10-11) $ ( 80,000) $ 8 0,000
Community Services Dept, Fine Art
Maint/Preservation (S. Nonnenberg proposal) $ 1 5,000
Police Dept, Radios for NGEN project (move from
2008-09 to 2009-10) $ ( 93,450) $ 9 3,450
Public Wks Dept, Radios for NGEN project (move
from 2008-09 to 2009-10) $ ( 68,950) $ 6 8,950
Adjusted Total Expenditures $ 1 4,285,494 $ 1 4,852,559 $ 1 4,994,483
Surplus (Deficit) $ - $ - $ -

DRAFT
(Includes proposedchanges)
City of Carmel-by-the-Sea
General Fund Budget Summary - Revenues and Expenditures
FY 2006-07 Thru FY 2010-11
Revised Revised Revised Proposed
Actual Budget Budget Budget Budget
2006-07 2007-08 2008-09 2009-10 2010-11
Revenues:
Transient Occupancy Tax $ 4,123,602 $ 4 ,220,000 $ 4 ,393,500 $ 4 ,481,370 $ 4 ,593,404
Property Tax $ 3,725,693 $ 3 ,800,000 $ 3 ,974,000 $ 4 ,053,480 $ 4 ,215,620
Sales Tax $ 2,143,171 $ 2 ,217,000 $ 2 ,362,060 $ 2 ,479,620 $ 2 ,566,407
Interest income, Rents, Parking Lot fees $ 626,953 $ 5 84,543 $ 5 18,025 $ 5 30,153 $ 5 42,587
Business License Tax $ 532,861 $ 6 10,400 $ 6 40,000 $ 6 52,800 $ 6 78,912
Fees and Permits $ 487,645 $ 5 19,156 $ 4 46,600 $ 4 57,792 $ 4 76,988
Franchise Fees $ 466,108 $ 4 55,950 $ 4 67,571 $ 4 81,516 $ 4 95,962
Other Governmental Agencies (VLF, HOPTR) $ 375,744 $ 3 79,700 $ 3 72,730 $ 3 83,207 $ 3 93,998
Traffic Safety $ 292,632 $ 2 50,000 $ 3 18,000 $ 3 24,360 $ 3 30,850
Charges for Services $ 44,304 $ 4 0,100 $ 4 4,883 $ 4 4,964 $ 4 5,046
Fines (court fines) $ 9,224 $ 8 ,760 $ 8 ,160 $ 8 ,356 $ 8 ,565
Miscellaneous Revenue $ 505,174 $ 1 42,745 $ 4 8,655 $ 4 9,271 $ 5 3,009
Transfers (to)/from Capital Project Reserve $ (497,322) $ (692,814) $ 2 75,000 $ 2 97,400 $ 4 17,040
Transfer from Gas Tax Fund (Prop 1B monies in 08-09 & 09-10) $ 66,823 $ - $ 2 15,600 $ 1 84,400 $ -
Transfer from Workers Compensation Fund $ - $ 4 9,203 $ 8 0,000 $ 8 0,000 $ 8 0,000
Transfer from Benefit Liability Fund $ - $ 4 0,000 $ 7 2,000 $ 7 4,160 $ 7 6,385
Transfers from Equipment Acquisition Fund $ 8,335 $ - $ - $ - $ -
Transfers from Debt Svc fund (interest accrued-Union Bk) $ 56,872 $ 2 9,600 $ 1 5,000 $ 1 5,000 $ 1 5,000
Transfer from General Fund Reserve $ - $ 4 1,209 $ - $ - $ -
Transfers from Other Funds (TAMC, Prop 172, Deposit Accts) $ - $ 2 2,615 $ 3 3,710 $ 2 54,710 $ 4 ,710
Transfer to Debt Reduction Reserve $ - $ (678,822) $ - $ - $ -
Surplus from prior period $ - $ 1 ,904,018 $ - $ - $ -
Total Revenues (excluding grants) $ 12,967,819 $ 1 3,943,363 $ 1 4,285,494 $ 1 4,852,559 $ 14,994,483
Expenditures:
60 City Council $ 84,330 $ 2 11,021 $ 1 41,494 $ 1 45,116 $ 1 49,571
61 Legal $ 168,966 $ 2 99,760 $ 1 64,434 $ 1 64,434 $ 1 64,434
62 Engineering $ 5,800 $ 9 ,300 $ 9 ,300 $ 9 ,300 $ 9 ,300
63 Treasurer $ 2,238 $ 2 ,400 $ 2 ,400 $ 2 ,400 $ 2 ,400
64 Administration $ 687,478 $ 8 51,813 $ 8 06,999 $ 8 34,526 $ 9 57,033
65 Information Services/Network Management $ 293,778 $ 3 34,570 $ 2 24,763 $ 2 31,403 $ 2 36,805
67 Administrative Services $ 734,516 $ 7 94,651 $ 9 94,753 $ 1 ,032,733 $ 1 ,058,458
69 Community Planning and Building $ 552,744 $ 7 85,000 $ 8 10,167 $ 8 52,201 $ 8 98,284
70 Building Maintenance Services $ 387,095 $ 3 65,981 $ 4 49,236 $ 4 65,116 $ 4 71,942
72 Fire $ 1,334,065 $ 1 ,629,611 $ 1 ,741,807 $ 1 ,836,409 $ 1 ,911,346
74 Police $ 2,410,656 $ 2 ,792,821 $ 2 ,886,975 $ 3 ,137,601 $ 3 ,200,053
76 Public Works $ 983,603 $ 1 ,103,200 $ 1 ,333,668 $ 1 ,434,200 $ 1 ,415,873
78 Forest, Parks and Beach $ 391,218 $ 4 80,454 $ 4 79,778 $ 4 88,871 $ 5 05,360
80 Community and Cultural (SCC Enabling Grant) $ 713,000 $ 7 50,000 $ 7 13,000 $ 6 80,000 $ 6 80,000
82 Community Services $ 187,097 $ 2 30,952 $ 1 40,362 $ 1 08,747 $ 1 11,699
84 Harrison Memorial Library $ 887,529 $ 8 07,386 $ 9 49,011 $ 9 94,240 $ 1 ,044,946
85 Marketing and Economic Revitalization $ 247,532 $ 3 08,600 $ 3 25,030 $ 3 31,612 $ 3 32,978
88 Capital Outlay Program $ 224,760 $ 7 21,627 $ 4 70,902 $ 4 13,650 $ 4 09,687
89 Capital Improvement Program $ 416,032 $ 5 75,700 $ 9 75,400 $ 1 ,017,660 $ 7 60,992
90 Facility Improvement(Property Assessments) $ 25,005 $ 2 6,034 $ 2 7,300 $ 2 8,665 $ 3 0,100
91 Debt Service $ 759,229 $ 7 96,070 $ 5 66,715 $ 5 69,515 $ 5 66,837
93 Benefit Liability $ 43,077 $ 9 0,000 $ 7 2,000 $ 7 4,160 $ 7 6,385
Total Expenditures (excluding grants) $ 11,539,748 $ 1 3,966,951 $ 1 4,285,494 $ 1 4,852,559 $ 14,994,483
Surplus (Deficit) $ 1,428,071 $ (23,588) $ - $ - $ -
s:\cityhall\data\budgetfolders\budget 2006-07 3 yr\Summary Gen Fund Revenues and Expend_FOR JUNE 10TH MTG,6/6/2008 S 1
7
DRAFT City of Carmel-by-the-Sea
Reserve Balances
FY 2008-09 Projected Balances
Estimated FY 08-09 Transfers Estimated
7/1/08 Interest/ (To) From 6/30/09
Reserve Name Purpose Balance & Oth Income Gen Fund Balance
Capital Capital improvements & outlays $ 3,071,994 $ (275,000) $ 2 ,796,994
General Fund
For general fund shortfalls. Policy C94-01 requires at least 10% of annual
revenues be held in reserve. $ 1,950,000 $ 1 ,950,000
OPEB To fund portion of Other Post Employment Benefits Liability (GASB 45) $ 1,045,500 $ 31,000 $ 1 ,076,500
Workers Compensation For self-funded workers comp claims, as requred by Muni Code 3.08.050 $ 1,031,496 $ (80,000) $ 9 51,496
Debt Reduction Reserve To fund Sunset Center bond debt reductions, per Reso 2008-8 $ 691,000 $ 20,700 $ 7 11,700
Debt Service
To comply with reserve requirements of the the Sunset Center 2001
Certificates of Participation Trust Agreement with Union Bank $ 610,000 $ 15,000 $ (15,000) $ 6 10,000
Parking In-Lieu To develop off-street parking in or near business district $ 608,200 $ 18,000 $ 6 26,200
Benefit Liability Employee vacation and sick leave, as required by Muni Code 3.08.030 $ 610,000 $ (72,000) $ 5 38,000
Hostelry
For transient occupancy tax shortfalls. Policy C94-01 requires at least
10% of annual revenues be held in reserve. $ 439,350 $ 4 39,350
Natural Disaster
For unanticipated expenses during an emergency event and recovery
periods $ 250,000 $ 2 50,000
Forest Theater For Forest Theater improvements $ 37,000 $ 18,340 $ 5 5,340
Total $ 10,344,540 $ 103,040 $ (442,000) $ 1 0,005,580
Note: Shaded lines indicate reserves based on municipal code, City policy, or trust agreement provisions.

CITY OF CARMEL-BY-THE-SEA
TRIENNIAL BUDGET
FISCAL YEARS 2008/09 - 2010/11
BUDGET QUESTIONS & ANSWERS
COMMENTS/GENERAL QUESTIONS:
Q.1. Can a statement of Reserve Balances be added to the budget?
Response:
A statement of City Reserve balances will be added to the final budget document. A
draft will be included in the Agenda packet for the June 10, 2008, Special City
Council meeting.
Q.2. Is there any advantage to buying our supplies in bulk? What do Office Supplies
amount to in total?
Response:
The City receives special government pricing on orders from its office supplies
vendors. In total, the proposed office supplies budget for FY 2008-09 is $8,870.
Q.3. Why was the request from the Chamber of Commerce to cover mailing costs for
the “Guide to Carmel” not included in the budget?
Response:
The proposed budget includes nearly $129,000 for a marketing contract with Anda
Burghardt. In addition, there is $60,000 budgeted for an Economic Development
Manager consultant, $126,280 for participation in regional marketing by the
Monterey County Convention & Visitors Bureau (MCCVB), and $10,000 for
implementation of the Economic Revitalization Plan. This is a total investment of
$325,000 to stimulate the local economy at a regional level.
Q.4. With an annual budget of $14 million and $10 million in reserve funds, why does
our city outsource so many projects which could be done by competent, professional inhouse
City employees?
Response:
The primary purpose to outsource is to augment in-house staff. The benefits of
outsourcing include cost savings, improved quality, specialized knowledge, access to
a large talent pool and risk management mitigation.
Q.5. If fires are not going to be banned on the beach, can monies be spent to clean up
the fire areas each Monday? Also, money for reclaiming of Mission Trail Park from
invasive species should be included in the budget.
Response:
The proposed budget includes spending $10,000 annually in contracted labor costs
to assist City staff with the beach cleanups on Monday mornings from Memorial
Day to Labor Day. Public Works internal staff will continue to clean up trash and
will use additional contracted staff, if necessary.
In regards to Mission Trail Nature Preserve (MTNP), some invasive plants are cut
and removed in the fuel abatement zones, but not plants such as live ivy, acacias and
eucalyptus in other areas. Additional funding would be required to specifically
target invasive species in MTNP. The City could contract with the California
Conservation Corps or other private contractors for this service.
TAB 1 - BUDGET MESSAGE:
Q.1. The City’s capital reserve stands at ~ $3.1 million currently? How much money
from this year’s capital budget will be transferred to the capital reserve, money budgeted
but not spent? Will the $275,000 to be drawn from capital reserves next fiscal year be
offset by an increase to those reserves from this year’s budget?
Response:
It is estimated that approximately $230,000 of the current year’s capital budget will
not be spent by the end of the fiscal year. If the City completes the current fiscal
year with a net surplus, the City Council can consider transferring the net surplus
to the Capital reserve, thus increasing the Capital Reserve balance.
Q.2 Were the City’s many events historically coordinated and managed by Christie
Miller? With her departure, are these events being de-emphasized? How can a $20,000-
a-year, part-time contractor be expected to do a comparable job?
Response:
The special events oversight by Christie Miller was only a part of her complete
responsibilities. Ms. Miller has stated that a part-time person can handle the special
events. Staff will seek to hire a half-time staff person and will commence
recruitment upon the adoption of the proposed budget. Once a person is hired,
he/she will assess the list of City events and determine the number of hours needed
need to manage/facilitate the events.
Q.3 Regarding Vehicle Tow, Abandoned Vehicle Tow Fee & Animal Transport Fee,
please explain what these are and why the fees are being increased. $3,000 is not a big
increase in revenue and may not be necessary at this time.
Response:
These fees relate to staff time spent on towing vehicles and/or providing
transportation of animals to the Monterey County animal shelter in Salinas. As
authorized by law, the fees are calculated on the basis of cost recovery for staff time
spent to provide these services. The fees are periodically adjusted due to increases
in employee salaries and benefits.
Q.4 The dollar amount for the potential debt service increase to finance the NGEN
public safety radios should be included in the budget for informational purposes, if
possible.
Response:
The NGEN project is still in a development phase. Monterey County may apply for
special financing for the core costs. Individual agencies which participate in such
financing will annually pay their pro-rata share. The City will include the financing
costs in its budget once the financing information is available and cost estimates are finalized.
TAB 2 –BUDGET RESOLUTION & INVESTMENT POLICY
Q.1. What is the history of City Policy C94-01? Does it need to be revised?
Response:
City Policy C94-01 was originally approved by City Council on July 13, 1994, and
then revised on June 11, 1996. The policy outlines financial policies for the
City, including minimum levels of capital outlay and capital improvement
expenditures in the budget, amounts to budget as a revenue buffer, and minimum
amounts to spend under the Council Discretionary account. Due to the length of
time since the June 1996 revision, it would be wise to revisit this policy and
determine if revisions should be made.

TAB 3 – ORGANIZATIONAL CHART
Q.1. Why isn’t there a provision for a full-time person to water trees? The proposed
new director of the Forest, Beach and Public Services Department will have no impact
on tree watering because he/she will oversee other areas besides the preservation of the
forest.
Response:
The existing funding level for a person to water trees is $20,200. The funding level
to make this position a full-time person is $52,000, which includes benefits. This is a
job duty that could easily be outsourced to the City’s contract landscapers and a
cost comparison should be performed prior to increasing the existing funding.
Trees on the City tree list are considered drought tolerant once established.
Q.2. In times of near drought conditions, is it reasonable to hire a full-time tree
waterer? Should the City focus on planting trees that are more drought tolerant? Should we postpone re-plantings until our future water supply is more certain?
Response:
All of the trees on the City tree list are considered drought tolerant once established.
Our tree watering program utilizes the non-potable spring water from the Del Mar
area and is independent of the local potable water issues. The City is committed to
planting new trees. However, whatever hourly level this position is allocated will
determine the number of trees that can be planted and sufficiently supported each
year.
TAB 4 – WORK PLAN AND 5-YEAR CAPITAL BUDGET
Q.1. On the Work Plan, can amounts be added for:
Administration Document Imaging
Community Planning & Building LCP and Green Building Policies
Police Department Emergency Preparedness
Public Works Feasibility Study for permanent toilets on Scenic at 10th & 13th
Response:
The Work Plan document is designed to reflect projects that support the City
Administrator’s goals. Dollar amounts associated with these projects are included
in the Capital Budget and departmental schedules of expenditures.

Q.2. What is the difference between the two footbridges for Mission Trails Nature
Preserve? Shouldn’t the total for the grant funded project be $16,800?
Response:
The grant funded project is a new bridge crossing for the Doolittle Trail near Rio
Road The other MTNP bridge project is to replace or significantly repair the
smaller bridge on the Serra trail near the Mt. View entrance.
The total project cost for the grant funded project is $16,800. The amount of
$11,800 as shown on the capital budget schedule is net of the $5,000 grant amount.
Q.3. Why is the Forest Study Implementation cost for 2008-09 only $20,000 and not
the $50,000 approved by the City Council?
Response:
Approximately $30,000 of the total $50,000 approved for this project will be spent in
the current FY 2007-08. The remaining $20,000 will be spent in FY 2008-09.
Q.4. Is the annual Carmel Beach sand replenishment just the dozing of the sand
toward the bluffs?
Response:
Yes.
Q.5. Why does the City need design work for the new Del Mar tank? Can’t the City
just replace it?
Response:
We are looking to put a new tank with better access and capacity to service the
City’s needs. Replacement costs for one or both existing tanks may exceed the cost
to put in a new tank.
Q.6. Is the $60,000 budgeted in FY 2011-12 for the pedestrian path on San Antonio
between 2nd & 4th the cost of design work?
Response:
The $60,000 is estimated for design and construction, particularly if other funding
sources can be found to supplement the city funds.

Q.7. Please explain what the Autofind Mobile LPG unit is and why the City needs it.
Also explain what the Go-4 parking unit is and why the City needs two new units.
Response:
The Autofind Mobile LPG is the Global Positioning System (GPS) technology that
was approved for installation on one existing Go-4 parking enforcement scooter in
FY 07-08. The Go-4 parking unit is the three-wheeled scooter driven by parking
enforcement officers. There are three Go-4 scooters in the Police Department fleet,
two of which are becoming unreliable due to age, mileage, and/or mechanical
breakdown. These two Go-4 scooters must be replaced in the next few years,
especially if additional investment is made to equip them with GPS technology.
Q.8. For the Autofind Mobile LPG, it is possible to have a report from staff to learn
how the initial system is working before we budget for two more?
Response:
Yes, a six-month status report will be presented to the City Council in August 2008.
Q.9. What are the Year 4 and 5 vehicle replacements intended for? See FY 2011-12
and 2012-13.
Response:
The Year 4 and 5 vehicle replacements are intended to set aside monies to replace
aging City vehicles used by the Public Works and Forest, Parks & Beach
departments. The specific vehicles in need of replacement will be determined when
those outlying years become part of the Triennial Budget.
Q.10. Why are the Prop 1B and TAMC funds monies subtracted at the bottom of the
Capital budget?
Response:
The Prop 1B and TAMC monies are subtracted at the bottom of the Capital Budget
as a way to note that the City is expecting to use these funds toward specific street
and road projects. Prop 1B monies of $400,000 were already received by the City.
The $250,000 from TAMC is currently allocated to the City but will not be received
until TAMC approves the project and expenditures are submitted to TAMC for
reimbursement.

Q.11. Of the $1,367,842 earmarked for capital projects, how much is expected to be
“carried over” from this year. Several projects were not completed this year, including
4th Avenue landscaping, the General Plan update, the Historic Context Statement, etc.
How much money is in next year’s budget that was budgeted this year? What part of the
$1,367,842 is for new projects vs. carryovers this fiscal year??
Response:
Unspent funds from the current fiscal year are not “carried over” to the new year.
If the City has unspent funds that create a net surplus for the year, the City Council
can consider transferring the net surplus to a reserve fund, such as the Capital
Project Reserve.
For the current year’s total capital projects budget, it is estimated that
approximately $230,000 will not be spent by the fiscal year end. The amount in the
FY 2008-09 draft budget for projects not completed in 2007-08 totals $360,000.
Increases were requested for certain projects, such as the Fire Department
Generator project and the Historic Context Statement.
Q.12. The Nichols Study said the city needs to spend ~ $660,000 to maintain city streets
at their current state. How much will be spent next year on City streets from all sources
(Including 1B money, TAMC, etc.)?
Response:
For FY 2008-09, the proposed capital projects budget includes a total of $515,600
for street and road projects. Due to limited staff resources, staff recommends
focusing on the proposed street and road projects and add additional projects if
resources and funds are available by mid-year.
Q.13. The Planning Commission recommended that money be allocated for a
pedestrian path between 2nd and 4th on San Antonio for safety reasons. Shouldn’t that be
part of the Del Mar and North Dunes Master Plan? Will the pedestrian path expense be
incorporated into the Master Plan? Should the path be listed separately in 2011-2012?
Response:
The Del Mar Master Plan was intended to incorporate the Del Mar parking area,
Del Mar Dunes (between parking lot and 8th Avenue) and the North Dunes (north of
parking lot). We had not intended to include the pathway between 2nd & 4th in the
plan and it was not included in the budget estimate. It may be more appropriately
incorporated into the 4th Avenue Riparian Restoration Project. However, we
certainly could include it in the Del Mar Plan if requested by Council.
7
Q.14. The Police Dept./Youth Center Generator is listed in 2010-2011 for design work
and 2011-2012 for implementation. Doesn’t emergency preparedness require that this
project be moved up in the schedule? Doesn’t the possibility of another winter storm like
this year’s, earthquakes, etc. give an urgency to this project?
Response:
This project is intended to supplement Red Cross sheltering services that are
already available to the City. The generator project is one of several strategies
underway to increase the City’s capacity for managing emergencies. The Carmel
Foundation also is initiating efforts to acquire a generator which would fully operate
its facility in the event of extended power outages.
Q.15. Are there plans for a public meeting to review the concept of the Forest Theater
remodel? How can the public obtain a copy of the booklet given to City Council
members on this plan?
Response:
The public will have ample opportunity to review and give input to the project as it
goes forward in the process. A workshop has been tentatively scheduled for June
17, 2008. The McCann pre-design concept is available at the reference desk at
Harrison Memorial Library.
Q.16. Recommendation: The Capital Outlay for the Fire Engine Type 1/3 Lease
($78,000) should be moved up to FY 2008/09, not delayed until FY 2009/10.
Response:
The Fire Engine is custom ordered and the manufacturing lead time is close to one
year. If the City Council approves the proposed Triennial Budget, the Fire Engine
can be ordered, but not delivered, until approximately June 2009.
Q.17. What is the status of the Scenic Road beach restroom project either at 10th or 13th
to replace the temporary porta-potties?
Response:
Staff is currently reviewing an architectural services proposal to complete a
conceptual design of the Scenic Road beach restroom.

Q.18. Under the Forest, Parks and Beach Department, Police Department, and Public
Works Department, there are allocations for Ford vehicles and a Go-4 Parking Unit.
Have comparable hybrid vehicles been considered in lieu of the FP&B medium duty
truck, FP&B pickup truck, Police Ford Expedition or patrol vehicle, and Public Works
3/4 ton truck? Has the savings in terms of cost, as well as carbon emissions, been
analyzed?
Response:
The Police Department tried electric Go-4 scooters several years ago and found
them to be problematic due to charging limitations.
Surveys of police departments in California indicate some agencies have
experimented with propane and compressed natural gas but difficulties resulted
with lack of engine power, problems with electronics due to the extra emergency
equipment, and lack of fueling stations in the event of out-of-county mutual aid.
CHP is doing some testing with alternate fuel/hybrid cars, but no successes have
been announced yet.
For Public Works and Forest, Parks & Beach vehicles, there are no hybrids
currently on the market in the size that is needed. Quite often these vehicles are
purchased through the State of California contract agreements with dealers around
the state to get the lowest cost available. Perhaps technology will advance to the
point where larger trucks become hybrids or alternative fuels (LPG, etc.) become
cost effective and readily available.
Q.19. Can the City consider fuel efficient models for the replacement vehicles (ex: Ford
Expedition, etc.)?
Response:
Refer to Question 19 above.
Q.20. Why does the Police Department need a thermal imager? Doesn’t the Fire
Department have one?
Response:
Yes, the Fire Department has a thermal imager and it has been used by the Police
Department for just-occurred crimes. The Police Department experiences a delay
due to Fire Department notification and time taken to respond to the scene and/or
the Fire Department being occupied on another call. Since time is of the essence, it
would be preferable for the Police Department to have a thermal imager available
for immediate use. The Police Department is researching grant opportunities to
fund this equipment.
Q.21. What is the Carpenter to Junipero slurry seal project? Is this for Ocean Avenue?
Response:
This project is for the truck route into town, not on Ocean Avenue.

Q.22. The Fire Truck shows four lease payments of $78K each. What does the “Type
1/3” mean?
Response:
“Type 1/3” refers to the type of Fire Engine and does not refer to the lease
payments. The description for this capital item will be clarified on the final budget
document.
TAB 5 –CHARTS
Q.1. Can dollar amounts be added to the revenue pie chart on Page G-2?
Response:
Staff will work on adding dollar amounts to the revenue pie chart on Page G-2.
TAB 6 –SUMMARY PAGES
Q 1. On Page S-1, footnotes should be added to explain why departmental
expenditures have gone up or down dramatically.
Response:
Footnotes explaining significant increases/decreases for departmental expenditures
are found on the individual department budget pages, beginning with Page E-1.
Q.2. Department names clarifications:
What is the difference between Admin Services and Administration?
Can Building Maintenance Department be renamed to Facilities Maintenance?
Can Community & Cultural just be called SCC Enabling Grant?
Response:
Administration Department includes the responsibilities of the City Administrator
and the City Clerk. Administrative Services Department includes the
responsibilities of finance, budget preparation, personnel management, payroll, risk
management, and business license processing. It is common practice to separate
the responsibilities of the City Administrator and the finance department as an
internal control measure.
Regarding renaming the Building Maintenance Department to Facilities
Maintenance, this change will be made with the final budget document.
Renaming Community & Cultural to SCC Enabling Grant is not recommended
because the SCC Enabling Grant is an account under this department/category.
Leaving Community & Cultural intact will allow for the addition of other accounts
to fund cultural support, if needed.

TAB 7 – REVENUE SCHEDULES
Q.1. On Page R-3, why have booking and processing fees dropped off entirely?
Response:
Booking fees revenues are not included in the proposed budget because booking fees
are an item in the State budget that may be cut significantly or eliminated. Due to
the uncertainty of this revenue source, staff recommends budgeting zero at this
time.
Q.2. On Page R-4, was COPS funding dropped from the May revision of the State
budget?
Response:
The Assembly Budget Subcommittee voted to fund the COPS program at the same
level (10% cut) as the Governor’s proposed budget. However, the Senate Budget
Subcommittee voted on May 8th to entirely eliminate COPS funding. The State has
not yet adopted its budget, so the outcome of this debate is still unresolved.
It is important to note that the COPS funding that the City plans to use for FY
2008-09 has already been received. Therefore, if COPS funding is eliminated from
the State budget, the first year that the City will be negatively affected is FY
2009-10.
Q.3. On Page R-4, what is the $250,000 grant revenue from TAMC?
Response:
The $250,000 of TAMC funding on Page R-4 is for street and road projects. The
City plans to submit the Junipero repaving project (budgeted in FY 2009-10) to
TAMC for approval and use the allocated funding to cover a portion of the costs of
the project.
Q.4. On Page R-4, why did Miscellaneous Revenue drop off almost $80,000 between
FY 2007-08 and FY 2008-09?
Response:
In FY 2007-08, the spike in Miscellaneous Revenue is due to the $71,812 of TAMC
Fair Share funds that the City received for the Mission Street repaving project
completed in December 2007.
Q.5. Is a road impact fee for heavy, industrial vehicles in the budget? This fee, like the
City of Monterey’s, has been discussed and studied. Is it being implemented? If so, when?
Response:
No revenues are included from the proposed construction truck impact fee. This
new fee has not yet been implemented. Staff is in the process of gathering more data
on implementing such a fee and will be bringing new recommendations to City
Council at a later date.

Q.6. Sales tax is expected to grow at a 2% rate, while TOT is expected to grow at 1%?
Is this a reasonable assumption? Isn’t TOT’s historical growth rate higher?
Response:
Sales tax revenues were projected based on information from the City’s sales tax
contractor, HDL. HDL provides sales tax projections based on actual sales tax data
from the State Board of Equalization.
For TOT, a 1% growth over the current year’s actual projections was used for FY
2008-09, followed by 2% growth in FY 2009-10 and 2.5% in FY 2010-11.
Q.7. Some fee and permit charges have not been increased since 2004. Why are they
not reviewed/increased annually? The increases are 11%, 23%, and 32%. Are the
increases based on cost of living, in which case why are they not in line with each other,
or on specific data by fee/permit?
Response:
Annual review of fee and permit charges is a part of the annual budget process.
Staff looks at current costs to determine the level of increase. In recent years,
department heads have focused on those fees that are the most significantly out of
line with actual costs. Ideally, all fees and permits would be reviewed annually, time
permitting.
Q.8. On Page R-5, Traffic Safety, the revised 2007-08 budget amount is $250,000. Why
do projections for the next three budget years jump to $318,000, $324,360, and $330,850
respectively?
Response:
Actual results for Traffic Safety revenues in the current fiscal year are estimated to
be significantly higher than budget. Budget for FY 2007-08 is $250,000, whereas
actual revenues may be as high as $315,000. Projections for the Triennial Budget
period are based on the higher actual revenues the City is currently receiving.
TAB 8 – DEPARTMENTAL EXPENDITURES
Q.1. On Page E-1, doesn’t the City need to pay another $50,000 to the Community
Housing Trust?
Response:
Per Resolution 2007-40 dated July 3, 2007, the City Council approved a
contribution of $50,000 to the Community Housing Trust, funded in the FY 2007-08
budget. The check was issued in July 2007. There is nothing more due at this time
unless the Council approves additional funding.

Q.2. What expenses for legal and consulting professional services are in the budget for
water related issues?
Response: No specific amount for legal expenses is in the budget for water related
issues. Typically, staff includes a line item in the City Attorney’s budget of
professional services to cover any additional costs that may require special legal
counsel.
Q.3. The City needs to revisit the cost difference of an April Election versus an election
that is combined with another election, i.e. February primary, June primary, etc.
Response:
The Mayor and City Council elections in the past have cost approximately $8,000.
Staff has requested that the County Registrar of Voters provide us with a new
estimate that won’t be available for two weeks. Staff believes that the cost for the
past election in April 2008 will cost more than past elections.
Q.4. On Page E-7, the Building Maintenance Services Department expenditures have
some big jumps in FY 2008-09. Can footnotes be added?
Response:
For Building Maintenance, Salaries and Wages are up in FY 2008-09 as compared
to FY 2007-08, primarily due to budgeting for a Building Official for a full year in
2008-09 plus MOU scheduled increases. Other line items with significant increases
are Utilities, Materials & Supplies, and Outside Labor. Utilities were increased
based on actual costs in FY 2007-08. Materials & Supplies and Outside Labor were
increased to cover costs of deferred maintenance projects, such as Fire Department
forced air furnace replacement, Fire Department fluorescent lighting upgrade,
exterior painting at Sunset Center, interior painting at the Park Branch Library,
and fluorescent lighting upgrades at Public Works truck bays.
Footnotes will be added to Page E-7.
Q.5. On Page E-8 Fire Department, can the City ask CRFA to change its budgeting
process?
Response:
CRFA currently adopts its budget during the fiscal year. If CRFA could revise its
budget schedule to be in sync with the City’s budget cycle, the City could better
project the ambulance subsidy. Staff will work with CRFA staff on this issue.

Q.6. On Page E-10 Public Works, what is the storm water runoff program by cost? In
other words, what is the product?
Response:
The major categories that make up the $77,700 budgeted Storm Water Expenses for
FY 2008-09 are:
• Participation in regional groups, including public
education, outreach and annual reporting $50,000
• Analysis of City alternatives for diverting and treating
storm water runoff 20,700
• Consulting and report preparation 7,000
Total $77,700
Q.7. On Page E-11 Forest, Parks, & Beach, what is covered by Outside Labor &
Contractual Services?
Response:
Outside Labor covers the hiring of private companies to perform tree removals, tree
pruning, stump grinding, tree planting, trail clearing, fuel and invasive plant
removal, bridge and stairway repairs, pest control, independent consultant services,
irrigation installation and repairs, and other services as required. Contractual
Services covers an annual contract with a single private tree company for tree
related service for the fiscal year up to the budgeted funds.
Q.8. Currently, it takes months to remove a stump while five underground utility
companies assess the position of their equipment. Is stump removal included as a
package in the outsourced tree trimming service contract? Does the budget include a
point person to oversee and coordinate utility companies in a more timely manner?
Response:
Tree removal contracts usually require grinding of most of the stumps. Not all
stumps require grinding, depending on their location and proximity of other trees.
Stumps remaining from removals done by City staff are usually contracted out once
or twice a year. Those stumps in the sidewalk areas of the business district may
require more direct coordination with the utility companies, City staff and the
stump contractor. Staff tries to grind these stumps and plant a new tree at the same
time to ensure a sufficient amount of the old tree is removed from the planting
location. Some stumps take more time than others, and staff strives to shorten the
time between tree removal, stump grinding and tree replacement.
Q.9. On Page E-13, can Community Services Department be renamed Community
Activities?
Response:
Staff recommends that the Community Services Department name remain the same.
It’s the widely recognized name in the recreation profession.

Q.10. On Page E-14 Harrison Memorial Library, how much of the $140,000 increase
from FY 2007-08 to 2008-09 is due to MOU increases?
Response:
The portion of the $140,000 increase related to MOU salary and wages increases
plus regularly scheduled step increases is approximately $50,000. During FY 2006-
07 and 2007-08, there were staff vacancies, followed by new staff hired at lower
salary ranges. By the end of FY 2007-08, all remaining staff vacancies were filled.
The new FY 2008-09 budget plans for full staffing plus a 12-hour office assistant for
the Library Director (starting salary $13,166 per year).
Q.11. On Page E-15 Marketing & Economic Revitalization, can a breakdown be
provided of what will be accomplished with the marketing dollars and the $70,000 in
revitalization monies?
Response:
Jeff Burghardt will give a presentation of the 2008/09 marketing plan at an
upcoming City Council meeting. The revitalization funds cover the Economic
Revitalization Manager contract and implementation of the Economic
Revitalization Plan.
Q.12. On Page E-16 Grants Department, can grant funds in the pipeline be listed?
Response:
Page E-16 is where Grant Expenditures are shown. If the City chooses to include
grant revenues in the pipeline, it would show those revenues on Page R-4. Staff
recommends continuing the practice of including only those grant revenues actually
received instead of showing grants in the application/approval process.
Q.13. On Page E-17 & E-18 Capital Outlay and Capital Improvements Budget, it would
be helpful to say “See Capital Budget Tab 4, pages 2&3. Can this change be made?
Response:
In the final budget document, the notations found on E-17 & E-18 “See Detailed
Draft Capital Budget” will be replaced with a listing of the actual approved
projects.
Q.14. On Page E-20 Debt Service expenditures, what is the Sunset Theater Admin Fee
for? Why do we pay this every year?
Response:
The annual Admin Fee is paid to the Sunset Center Bonds Trustee, Union Bank.
The fee covers the cost of administering the terms of the bond covenant.
Q.15. On Page E-20 Benefit Liability, is this really a department or an account?
Response:
The Benefit Liability is an account and is maintained in a separate “department”
within the budget because it applies to all City employees.

Q.16. How much money does the City spend on fuel to operate City vehicles? What
department is this budgeted under?
Response:
The City’s fuel expense is budgeted in the Public Works Department on Page E-10.
See account 01-76046 where $84,800 is budgeted for FY 2008-09.
Q.17. Page E-13, Contractual Services needs more clarification.
Response:
The $20,000 budgeted for Contractual Services on Page E-13 (Community Services
Department) is for covering the costs of outsourced community event planning
services. The contractor will plan and organize community events along with the
assistance of internal staff. The plan to outsource this service is due to the
retirement of Christie Miller, Community Services Director.
TAB 9 – GAS TAX FUND
Q.1. How much of Gas Tax goes to under-grounding and where is that account now
and what is the balance?
Response:
Gas Tax Fund monies are used for street and road projects, but not specifically for
under-grounding of utilities projects. California PUC Electric Rule 20 allocates
funds, paid for by PG&E customers through future electric rates, to cities for
specific, PG&E-qualified under-grounding projects. The City’s Rule 20A Electric
Underground Work Credit Balance as of 6/30/07 was $306,413. Staff is working
with the City Engineer to identify a Rule 20A qualifying project.

TAB 10 – FOREST THEATER FUND
Q.1. Can we show Sunset account balances: e.g. Community Foundation Endowment,
City Endowment and Debt Reduction Reserve for 2011?
Response:
The Forest Theater Fund was established to account for the operations of the
Forest Theater. The Community Foundation Sunset Theater Endowment was
established by the non-profit Sunset Center for the Arts and is, therefore, not
included as an asset on the City’s books. The City Endowment Fund has not yet
been established and is still being researched. The Debt Reduction Reserve is
included in the list of City Reserves (see Q.1. under Comments/General Questions).