11 ATTACHMENT 1, EXHIBIT A - Laserfiche WebLink

City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/2511 Staff is conducting a comprehensive water rate study. The results of the water supply study, together with anticipated operating and capital funding needs, will be examined through the rate study to determine the level of adjustments needed. This study is anticipated to be completed in early FY 2023/24, and recommended rate adjustments, along with corresponding budget amendments, will be presented to the City Council. Storm Drain Similar to the Water Utility, Storm Drain Utility is also experiencing a funding gap issue where operating costs are higher than the revenues. To cover this funding gap, the General Fund has been providing a subsidy annually to cover some of the deficit. The General Fund will contribute almost $1.9 million over a three-year period from FY 2022/23 to FY 2024/25. However, even with this subsidy, the Storm Drain Operating Fund is projected to have a negative ending fund balance of $0.9 million in FY 2024/25. Revenues have remained mostly static at just over $0.5 million for several years while operating costs have been increasing each year. Staff is exploring options that will increase revenues to fully fund the Storm Drain operation. Service Level Changes from FY 2022/23 The proposed budget reflects limited enhancements to bridge service gaps and increase operational efficiencies. Proposed staffing adjustments will result in a net increase of 1.0 full-time equivalent (FTE) for FY 2023/24 and additional 1.5 FTE for FY 2024/25 in the General Fund. It should be noted that 0.5 FTE of the Police Officer position is funded by a state grant. One additional FTE, Sustainability Coordinator, will be fully funded from a non-General Fund. These adjustments are the result of a careful assessment of the current staffing model for all departments and identifying areas of need based on community priorities. In order to minimize an increase in staffing costs in the General Fund while addressing staffing needs, two existing positions, ERP Coordinator and Senior Accountant, in the Finance Department are proposed to be downgraded to Junior Accountant and Administrative Assistant positions. Due to the projected deficit in the long-term forecast, the proposed full-time positions are not effective until January 1, 2024 or January 1, 2025. This strategy will provide the City the flexibility to defer filling new positions should economic or financial conditions change within the next two years. Increased service levels included in the budget are primarily in the area of recreation, arts and library services that were reduced during the pandemic. This proposed service increase represents an ongoing effort to meet the needs of the community based on the community’s input and current year’s participation data. A half time limited-term Human Resources Manager, as well as additional temporary staffing funding of $150,000, has been added to Human Resources to manage increased workload in the areas of employee and labor relations activities, recruitment, organizational training, and other personnel- related engagement. A Chief Diversity Officer position has been added to the City Manager’s Office, to be effective January 2025. This Chief Diversity Officer will lead the implementation and ongoing support of the City’s Diversity, Equity, and Inclusion (DEI) Action Plan. As a Council priority, this position will help the City to establish appropriate benchmarks, programs, policies, and implementation strategies. $100,000 in consulting services is also included in the FY 2023/24 budget to support the DEI program.