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Published by nvoelker, 2021-09-28 02:31:25

FY22 Adopted Budget fixed 092821

FY22 COB Budget Adopted_web_092821

City of Belmont

Adopted Fiscal Year 2022 Budget



Table of Contents

CITY MANAGER'S MESSAGE 5 DEPARTMENT INFORMATION 61

Letter of Transmittal 6 Departments by Fund 62

CITY OVERVIEW City Attorney 66

Achievement Highlights 19 City Council 70
City Council Vision 74
Organizational Values 20 City Manager 82
Strategic Focus Areas 22 Community Development 90
City Organizational Chart 23 Finance 98
City Profile 24 Human Resources 102
Basis of Budgeting 25 Information Technology 108
Budget Preparation Process 26 Parks and Recreation 116
Annual Budget Calendar 28 Police 124
GFOA Award 29 Public Works 132
30 Belmont Fire Protection District 136
FINANCIAL TRENDS 31 Non-Departmental

Major General Fund Tax Revenues 33 FUND INFORMATION 141
General Fund Ending Balance
Citywide Staffing 34 Introduction 142
37 Fund Descriptions
BUDGET OVERVIEW 38 General Funds 145

Citywide Operating Budget by Fund Revenue and Expenditure Assumptions 150
Citywide Operating Budget by Category
Citywide Sources of Funding by Fund 156
Citywide Sources of Funding by Category
Schedule of Interfund Transfers 41 Special Revenue 164
Capital Improvement Program Budget 184
All Funds Budget Summary 42 Capital Projects
Permanent Staffing Plan
44 Debt Service 192

46 Enterprise 194

48 Internal Service 200

50

52 CAPITAL IMPROVEMENT PROGRAM 209

54 CIP Project Listing 212

58 Funded Projects 218

Deferred Capital Maintenance 286

APPENDIX 299

Financial Policies 300
Gann Appropriations Limit 306
Legal Bonded Debt Margin 307
Glossary 308
Operating Changes 310
Budget Adoption Documentation 312



CITY MANAGER'S
MESSAGE

BUDGET MESSAGE 5

Letter of Transmittal

CITY MANAGER'S MESSAGE

Honorable Mayor Stone and Members of the City Council:

This past year, the Belmont community, along with the state, the nation, and the world, has seen unprecedented
times with the impacts associated from the COVID-19 pandemic. The initial shelter-in-place mandate and the
extended stay-at-home order have halted many activities, shutting down schools, businesses, and leisure travel.
While the impact was swift and significant, Belmont responded immediately and pivoted quickly to continue our
high-quality services to our community. I want to first express my gratitude for the generous response and hard
work from both our Council and our staff. We transitioned our operations in ways we could not have imagined
before, including moving our public meetings online, providing planning and permitting services remotely, and
connecting with our community through frequent and enhanced communication channels. Our dedication to our
community remains as strong as ever.

Through these challenging times, our staff connected with our community to provide information on financial
assistance and other resources available to businesses. The City contributed $150,000 to the San Mateo County
Strong Fund – a public/private partnership that provided grants directly to local businesses impacted by the
pandemic. Together with funds leveraged from County Measure K allocated by the Board of Supervisors, 33
Belmont businesses were each awarded a $10,000 grant, and additional businesses are currently being identified
for the grant awards. The steadfast commitment to our community highlighted the best of who we are in this past
year. I am proud of what we have accomplished and overcome as an organization.

From a financial perspective, similar to many other communities, we experienced a substantial shortfall to our
revenues, especially in our hotel room tax and recreation fees. Prior to the pandemic, Belmont had built General
Fund reserves at the highest level we have ever seen at nearly $15 million. But just three months after the shelter-
in-place was issued, General Fund reserves fell $1.2 million by the end of fiscal year (FY) 2020. Along with other
factors that I will explain later in this transmittal letter, the fund balance is projected to fall by another $6.1 million in
the next five years, a staggering nearly 50% drop.

Facing these losses, and with the support of CIty Council, our organization has implemented a series of strategies
that would not cause a major impact to our service levels, including reducing certain operational expenditures and
placing a hiring freeze on vacant positions. Our fiscal prudence continues to serve us well. That said, this can only
be one part of the solution.

We also turn our attention towards long-term fiscal sustainability, being thoughtful in rebounding our organization
stronger and more resilient through identifying opportunities to diversify our revenue sources and expand our

revenue base. Now more than ever, Belmont must have local
control over local funds for local needs – allowing Belmont to
be self-reliant and ensuring that local tax dollars are spent for
Belmont residents. As our community grows and flourishes,
our organization must use our resources strategically to
support our community. While reducing expenditures is a
good short-term measure, targeting investments in Strategic
Focus Areas to respond to our evolving community is the
long-term solution to build resiliency. Balancing short-term
response and long-term investment will remain a priority for
our organization. I am confident that this focus will guide us
through this challenging time and make Belmont stronger
than we were before.

6 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Letter of Transmittal

Fiscal Year 2022 Budget

With this framework in mind, I am pleased to present the FY 2022 budget. Overall, the citywide budget, including
both operating and capital, is $87.6 million.

CITYWIDE BUDGET FISCAL YEAR FISCAL YEAR
2021 2022
Citywide Operations
City BUDGET BUDGET
Belmont Fire Protection District
Total $54.4 $53.1
Capital Improvement Program (CIP) $10.3 $11.6
Total Citywide Budget $64.7 $64.7
In millions. $24.0 $22.9
$88.7 $87.6

Citywide operating budget for FY 2022 is $64.7 million and is flat over the adopted budget for last fiscal year. This
is primarily due to efforts taken by the departments to contain and reduce expenditures, despite rising costs that
are out of the City’s control such as health and pension cost increases. The Capital Improvement Program (CIP)
for FY 2022 totals $22.9 million and provides significant funding towards streets and storm drain improvements.
Overall, the City’s FY 2022 budget continues to provide for core services and makes a substantial investment in

our capital and infrastructure needs.

BUDGET MESSAGE 7

Letter of Transmittal

Capital Improvement Program (CIP)
In a community survey conducted this year, residents identified the following City service priorities:

• Fix potholes, and repair streets and sidewalks
• Maintain 9-1-1- emergency response times
• Maintain parks, open space, and sports fields
• Maintain neighborhood police patrols and crime prevention
• Maintain Public Works staff necessary to keep streets, like the Ralston Avenue improvements, and

sewer projects on-time and on-budget
• Keep public areas healthy, safe, and clean

This year we also launched the Belmont Conversation to expand the dialogue on City service needs and priorities
through the budget process. As this engagement effort gets underway, we look forward to updating the City
Council with the community’s feedback this summer.

The City’s five-year CIP plan is $61.5 million, with the CIP budget for FY 2022 at $22.9 million. With an aging
infrastructure, the City faces hundreds of millions of dollars in street and storm drain infrastructure needs alone,
in addition to maintenance needs for the City’s facilities and parks. While reducing support to capital projects
may seem like an easy solution to our financial pressures, keeping the funding intact is essential to maintaining
the City’s infrastructure, as delaying critical projects will only cost us more later. That is why we continue to make
long-term investments in our capital needs. The chart below shows allocation of the CIP budget in FY 2022 to the
different categories.

3% 2% STREETS $11.4M
1%
Includes Measure I improvement projects, general
50% street improvements and RMRA projects.

44% RECREATIONAL FACILITIES $470K

Includes improvements to recreational and general
facilities, and facilities management.

SEWER/STORM $10.1M

Includes improvements to the sewer infrastructure
and storm drainage systems.

PARKS/OPEN SPACE $325K

Includes library maintenance and operations,
planned park development, open space
maintenance/improvements and maintenance of the
athletic fields.

TECHNOLOGY $640K

Includes improvements to communication
infrastructure, fleet and equipment.

8 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Letter of Transmittal

General Fund
The General Fund is the primary funding source for the vast majority of core services. General Fund
expenditures for FY 2022 total $22.7 million, down 5.0% from the estimated $23.9 million in FY 2021. This is
primarily due to the mitigation strategies implemented to reduce operating expenditures, as described earlier
in this transmittal letter. The budget for Measure I funds in FY 2022 includes $4.1 million in CIP projects towards
roadway improvements. Total General Fund expenditures, including Measure I, are broken down into four
categories as shown in the chart:

PUBLIC SAFETY $14.4M HIGHWAYS AND STREETS $4.1M
Includes law enforcement administration, Includes street and highway improvement
crime control, traffic and community safety.
projects.

GENERAL GOVERNMENT $6.3M CULTURE AND RECREATION $2.0M
Includes human resources, including City Includes operation and maintenance of parks
staff, appointed and elected officials and
and open space, and associated
financial operations. programming.

15% 23%

8%

54% * Includes Measure I
BUDGET MESSAGE
9

Letter of Transmittal

General Fund revenues directly and indirectly support core services including police, public works, parks and
recreation, and general government operations. The FY 2022 revenue budget, including Measure I, total $28.4
million, down 6.3% from the $30.3 million estimated in FY 2021. The majority of the decrease comes from
taxes, which is partly due to the continual impacts from COVID-19, especially on hotel room tax. Additionally, for
reasons I will explain in more detail later in this transmittal letter, the City is facing further revenue impacts due
to Sacramento’s actions affecting property taxes, the General Fund’s top revenue source. While the City has
responded immediately to address and mitigate these impacts, and the long-term forecast assumes that the
strategies will be successful, in the short-term, property tax revenues are taking a hit. If the strategies prove not to
be successful, property tax impacts will be longer lasting and the financial plan will need to be adjusted accordingly.

11%

6%6%
5%
5%

15%
14% 6645%%

* Includes Measure I

TAXES $18.1M Includes property taxes, sales tax, transient
SERVICE CHARGES $4.1M occupancy tax or hotel room tax, business license
tax, and property transfer tax.
FRANCHISES $1.4M
OTHER $1.6M Includes revenues received from administrative
reimbursements, and public safety contracts and
COVID-19 FEDERAL RELIEF FUNDING $3.2M fees.

Includes franchise payments from companies
providing garbage, electricity, gas, and cable
television services in Belmont.

Includes federal grants, property rentals, billboard
space rentals, street access fees, fines, and interest
earnings.

Includes the second half of the one-time allocation
from the American Rescue Plan COVID-19 federal
relief funding.

10 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Letter of Transmittal

Enterprise Funds
Enterprise funds are self-supporting government funds that provide goods and services to the public for a fee that
covers the cost of the service, rather than a tax. For FY 2022, the City’s enterprise funds support a total of $25.8
million towards operational and capital needs:

$17.2 MILLION SEWER COLLECTIONS

$5.4 MILLION
SEWER TREATMENT FACILITY

$2.7 MILLION STORM DRAINAGE

$0.5 MILLION SOLID WASTE

BUDGET MESSAGE 11

Letter of Transmittal

Budget Development Priorities
As I mentioned earlier, balancing short-term response in the face of financial pressures and making targeted,
long-term investment will remain a priority for our organization. While we must continue reducing our expenditures
given the economic impacts we are facing, we still must make longer-term investments in the City so that when
this turbulent time subsides, our community will be positioned for long-term success.

With that in mind, part of the budget development process was to establish a baseline budget for FY 2022.
The lessons from the pandemic on how services can be delivered helped guide each department to evaluate
and “right-size” their budgets. For example, recreation activity guides that have traditionally been printed and
mailed are transitioning to an online format that are proving to be just as successful in reaching our community,
thereby reducing expenditures while still providing effective service. Once the baseline budget for FY 2022 was
established, which provided for core services at existing levels, funding priorities were evaluated that aligned with
Council and community priorities in the following Strategic Focus Areas:

• Infrastructure and Mobility
• Economic Development and Housing
• Fiscal and Organizational Sustainability
• Public Safety
• Quality of Life

Overall, I am pleased with what the FY 2022 budget is able to accomplish in right-sizing operations and funding
targeted areas. In spite of the economic downturn, the draft budget will maintain core City services at their
current levels and focus on City Council's goals of meeting community priorities. Some of the key items that are
incorporated in the budget include:

• Funding for Community Police Academy in conjunction with a neighboring jurisdiction to further public
engagement and trust;

• Funding for Public Art Master Plan implementation and a citywide tree risk assessment to further
quality of life;

• The addition of two positions to address economic
recovery and development demand, and
organizational sustainability; and

• Continue to develop diversity, equity and inclusion
programs; and

• Enhanced funding for street improvements.

Opportunities and Challenges
Even while impacts from the COVID-19 pandemic still remain, it
is important to note that Belmont is poised in a strong position
with many opportunities ahead. Major initiatives such as
economic development and accelerated street improvements
are occurring simultaneously. As our community continues to
grow, decisions that are made now will shape the future of
our community and set us on the course that our Council and
residents envision. There’s much to do, but I am confident that
with careful planning and execution, our talented staff is up to
both the opportunities and challenges ahead of us.

12 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Letter of Transmittal

Opportunities

HOUSING AND ECONOMIC DEVELOPMENT

Following a comprehensive update of the Belmont General Plan and adoption of the Belmont Village Specific
Plan in 2017, the City has experienced a significant growth in development activity, both in the downtown area
and extending along the El Camino Real and Old County Road corridors. New housing development provides the
critical mass necessary to support the existing Belmont business community, but also to attract new economic
development. As the City embarks on the State required update to the Housing Element of the General Plan,
the trend towards increased growth and development activity is expected to continue. This is an important time
for our community, and as an organization we are aligning our resources to support our continuing initiative
in creating charming and vibrant activity centers both in
downtown and other commercial centers and improving
the quality of life in Belmont.

Other recent accomplishments include breaking ground
on the City-owned Firehouse Square Phase 1 affordable
housing and mixed-use project by Mid-Pen Housing
(66 affordable housing units), issuing permits for the
Artisan Crossings 250-unit multi-family housing project
(38 affordable housing units), processing a record high
number of development entitlement applications in the
Community Development Department, enhancing business
communications and outreach, and continuing a strong
partnership with the Belmont Chamber of Commerce.

MEASURE I

Measure I is the ½-cent sales tax that Belmont voters passed in 2016. This locally-controlled funding source has
greatly enhanced the City’s ability to invest in roadway repairs. Most recently in March 2021, a $2.1 million 2020
Street Reconstruction project was awarded using Measure I funds, and the project is slated to begin construction
this summer. Measure I funds will again be utilized in the FY 2022 CIP budget, and total $7.1 million in the 5-year
CIP plan with projects including slurry seal, pavement rehabilitation, and storm drain infrastructure improvements.
These projects highlight our commitment in making long-term investments to improve and maintain our streets.

AMERICAN RESCUE PLAN

With the passage of the American Rescue Plan, federal relief funding was made available to state and local
municipalities to help with the economic recovery from COVID-19. This one-time funding is allocated based on
population, not in proportion of revenue loss. With a population of about 27,000, Belmont’s allocation is $6.4
million and will be remitted through the State split into two tranches, one at the end of this fiscal year, and one
next fiscal year. They are shown as a separate line item in the accompanying long-term financial plan under the
Fund Information Section of this budget document. These funds will be used to help Belmont and those that
have been impacted in Belmont to recover from the crisis. While this is very positive news for Belmont, it is also
important to note that we are not out of the woods yet, as financial challenges remain that are depleting our
General Fund reserves. Even with the federal relief funding, our reserves are projected to continue to decline, for
reasons that are described below.

BUDGET MESSAGE 13

Letter of Transmittal

Challenges

HOTEL ROOM TAX

Transient occupancy tax, or hotel room tax, is dependent on both the occupancy levels and room rates of the
City’s hotel stock. Belmont’s hotels mainly serve business travelers, and prior to the pandemic, revenues from
hotel room tax were approximately $4 million, making up one of the top revenue sources for the General Fund.
That being said, travel restrictions from the pandemic have devastated this revenue source. In FY 2021 alone,
hotel room tax is estimated to drop 65% to $1.4 million. Based on the clientele our hotels serve, even with a
successful vaccine rollout, the speed of recovery remains uncertain as virtual meetings and conferences have
become part of the new normal. As such, a slow recovery is projected for this revenue source, with $1.8 million
projected for FY 2022. As conditions change, we will monitor this revenue closely and adjust our long-term
forecast accordingly.

PROPERTY TAX

While dealing with the unprecedented impacts from COVID-19, Belmont is hit with yet another fiscal challenge that
came from Sacramento’s actions and directed to property tax, the largest source of revenues in the General Fund.

In August 2020, a decision made by the California Court of Appeals has modified the calculation on how
redevelopment agency (RDA) residual property tax is distributed by the County. The modified methodology
excludes each entity’s AB1290 statutory pass-through payments when calculating the proportionate share of
Redevelopment Property Tax Trust Fund (RPTTF) that gets applied to the residual balance. For Belmont, this results
in approximately $700,000 shortfall to the General Fund and $900,000 to the Belmont Fire Protection District on
an annual basis.

With such a significant and ongoing impact, a lot of work is being done to remedy this situation. Belmont has
identified and taken some first steps to discharge obligations from the Successor Agency by seeking an early
defeasance of the RDA bonds. With obligations discharged from the Successor Agency, the Successor Agency
can receive a final dissolution that will result in the shift of property tax revenues from RPTTF to general tax,
thereby mitigating the shortfall to RDA residuals. In March and April of 2021, Belmont received approvals from
the Successor Agency and County Oversight Board, respectively. The next step is seeking approval from the
Department of Finance, who has 100 days to review. We will know with more certainty by the summer of 2021
whether the mitigation efforts will prove successful. For now, the long-term financial plan assumes that the efforts
are successful and that the revenue shortfall is partially mitigated in FY 2022 and fully mitigated by FY 2023. We
will continue to monitor this situation closely and adjust the financial plan accordingly.

Another development that is impacting property tax revenue is property tax in lieu of VLF. In 2004, the California
Legislature approved a swap of vehicle license fee (VLF) for property tax as part of a state-local budget
agreement. The VLF that local municipalities had been receiving was permanently reduced from 2% to 0.65%,
and the difference is replaced with a like amount that is to be funded by property tax from non-basic aid school
districts. Any monies taken from non-basic aid school districts are backfilled by the State. Given the decreasing
number of non-basic aid school districts in San Mateo County, there are not enough non-basic aid school districts
to generate sufficient property tax to fund the amount owed to local municipalities. County officials are projecting
over $96 million countywide shortfall for FY 2021, Belmont’s share of which is $1.5 million. This follows a $10 million
countywide shortfall in the prior FY 2020. Further, with only 5 non-basic aid school districts remaining out of a total
of 26 school districts in the County, the trend is heading towards every school district flipping to basic aid status

14 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Letter of Transmittal

in the near future. The long-term forecast projects a scenario of zero non-basic aid school districts in the County
in six years that would, absent any legislative change, result in an approximate County-wide shortfall of upwards
of $270 million, Belmont’s share of which is $4 million. This only intensifies the need for Belmont to be self-reliant
and have our own locally-controlled funding sources.

In order to recover from the shortfall, the County has to submit a claim for consideration in the State’s budget
that, if approved, gets distributed two years later. While the State has backfilled shortfalls in previous years, there
is no requirement for the State to do so. As the shortfall increases County-wide from $10 million last year to over
$96 million this year, and is expected to increase further in subsequent years, there is much uncertainty around
the security of this funding source. Given the magnitude of this matter, a subcommittee of the San Mateo County
City Managers’ Group will be taking the lead on working with State representatives to address this issue. We will
continue to monitor this issue, collaborate with San Mateo County officials, and keep the City Council updated on
developments.

ORGANIZATIONAL DEVELOPMENT

An important issue facing Belmont and other jurisdictions throughout the public sector is the wave of retirements
that are happening right now. Especially for Belmont, we run a lean and “flat” organization, which means that
there is not a lot of room for overlap between our employees when they perform different responsibilities to
cover the comprehensive range of services we deliver to our community. So while retirements are not a surprise
and are a part of ongoing organizational change, we are needing to deal with the loss of institutional knowledge
that our long-term employees leave with when they retire.

Our efforts to focus on succession planning and attracting new talent are more important than ever. Over
half of our workforce will be retirement eligible in 5 years or less. As we see more retirements in the horizon,
we are moving to succession planning as best we can as an organization. This requires thoughtful foresight
and execution, while keeping an eye on our Strategic Focus Areas and advancing those priorities. Our focus
to attract new talent at a time when there are seemingly fewer in the next generation wanting to enter the
public sector, as well as our efforts to grow talent from within the organization, will be key to our success. As a
service organization, we are only as strong as our people. As we evolve as an organization, it is important that
we continue to find creative ways to meet our employees’ needs, so we can attract, retain, and develop new
dedicated talent to serve our community.

General Fund Long-Term Financial Plan

One of the key benefits of long-term financial planning is the ability to identify issues beyond the budget year,
so that appropriate actions can be taken to address those issues and course correct. As I mentioned earlier, the
financial challenges we are facing from COVID-19 and property tax will likely extend beyond the budget year. The
long-term financial plan allows us to see the effects of the impacts, and incorporates revenue assumptions on
recovery and mitigation efforts. On the flip side, the plan also incorporates expenditure assumptions for the long-
term. With over half of the General Fund operating expenditures going to personnel costs, the plan projects for
key factors such as salary increases, pension cost increases, and medical premium increases. While the City has
worked diligently to build its reserves to reach $15 million in FY 2019, we are now experiencing how quickly the
reserves can be drawn down when hit with factors outside our control, including COVID-19 and actions taken by
Sacramento. The graph on the following page shows our projected ending fund balance in the next ten years.

BUDGET MESSAGE 15

Letter of Transmittal

General Fund Balance Long-Term Forecast

$18

$16

$14

Millions $12 33%
Target

$10

$8

Minimum

$6

$4

$2

$0 ACTUAL ESTIMATED ADOPTED FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST

FY 2020 FY 2021 BUDGET FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031

FY 2022

The accompanying long-term financial plan in the Fund Information Section of this budget document underscores
the importance of carefully considering additional ongoing General Fund commitments. As we move forward, this
plan will continually be evaluated to identify issues and assess options to address those issues.

As we have experienced this past year with the draw down on our General Fund reserves, building back better,
more resilient and self-reliant will remain a focus to our organization. Our service is to our community, and to that
end, we continue to engage our community to identify priorities that are important. A recent engagement effort
shows that enhancing locally-controlled revenues to support fiscal sustainability is a key priority. A significant
proportion shows interest in updating and simplifying our business tax ordinance having large businesses pay
their fair share, and in assessing options on how best to have visitors pay their fair share to Belmont. With these
input, we look forward to working with the Council and our community to address these priorities.

New Budget Document

As you have undoubtedly noticed, the FY 2022 budget has a new look. Along with this new look is a change
to the structure of the document, with content being enhanced in a number of areas. The FY 2022 budget is
organized into eight sections, including a new financial trends section, new information on the City’s funds with
a ten-year financial plan for the General Fund and five-year plans for most of the other funds, and a section
organizing budgetary information by department. A lot of thought and effort have been put into revamping the
budget document. As you read this document, I hope you will agree with my assessment that the additional effort
was well worth the outcome.

16 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Letter of Transmittal

Concluding Remarks
The FY 2022 budget has been developed to strike a thoughtful balance between the short-term and long-term.
What I hope to accomplish with this budget is to provide the Council with a comprehensive framework with which
to make decisions. Even in challenging times, hope and opportunities abound. Decisions that are being made
now can help create a better level of sustainability that will serve Belmont well in the future. The events in this
past year have certainly been unprecedented. But the support from the Council to our community and to our
organization have been just as unprecedented. Our core principles remain the same: to execute on the Council’s
vision and to serve our community with high-caliber services. With this as our anchor, I am confident that whether
we face new opportunities or whether we face challenging circumstances, we will come out better and stronger
and more resilient than we were before.

The development and delivery of this budget was a team effort across the board, the culmination of months of
work from staff throughout the organization. First and foremost, I would like to thank the Council for articulating
a vision and setting priorities that guided us through the budget process. Next, I would like to thank my senior
management team, along with their respective staff members, for their efforts in developing their respective
departmental budgets. And finally, I would like to thank the members of the Finance Department, who drove
the process to develop the budget and execute on a vision of what our budget document could be. I am very
pleased with what we have delivered to you, both in substance and in style, and hope you are just as pleased.

Respectfully submitted,

Afshin Oskoui, P.E., PWLF
City Manager

BUDGET MESSAGE 17

18 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

CITY OVERVIEW

CITY OVERVIEW 19

Achievement Highlights

INFRASTRUCTURE AND MOBILITY development of secondary dwelling units, and facilitate
Infrastructure achievements include significant investments development of new housing by eliminating certain
regulatory barriers. Long range planning efforts in FY22 will
in the City’s storm and sewer systems with the ongoing include updates to the Belmont Village Specific Plan, Belmont
construction of North Road Pump Station and Force Main General Plan, and CEQA documents to ensure adequate
Rehabilitation Project, and the El Camino Real and Old growth capacity will serve growing demand for new housing.
County Road Sanitary and Storm Sewer Rehabilitation The City will continue Economic Development activities,
Project. In addition the development of Master Plans for including launching a new website, enhancing business
the city’s storm drain system, and our sewer infrastructure community outreach and communications, and establishing
system have begun in early 2021. The rehabilitation an ad-hoc economic advisory committee to assist Belmont
on various streets were completed as part of the 2019 businesses with post-COVID-19 reopening and recovering
Pavement Project Phase II (8 streets). The City also started efforts.
the construction for the 2020 Pavement Project (12 streets)
and the advertisement of the 2021 Slurry Seal Project (116 FISCAL & ORGANIZATIONAL SUSTAINABILITY
streets). Transportation and Mobility accomplishments
include the start of construction on the Ralston Avenue The City received the Award for Excellence in financial
Segment 3 project which will provide pedestrian and audits for the FY 2020 Comprehensive Annual Financial
bicycle improvements as well as a new road surface from Report. With a balanced budget, the City Manager's Office
South Road to Alameda de las Pulgas. The design of implemented proactive public information and social media
the Alameda de las Pulgas Corridor Project (Carlmont outreach to keep the community informed during the
Drive to San Carlos City limit) is also underway. Additional COVID-19 pandemic. Communication and engagement with
accomplishments include the adoption of the Transportation the Belmont community remain a key priority, and a Strategic
Demand Management Plan, adoption of new Vehicle Miles Communications Plan was developed and adopted by the
Traveled CEQA thresholds to comply with AB 743, and the City Council that will commit to proactive and transparent
establishment of a Traffic Impact Fee to address the impact communications, gather valuable input and feedback, and
of future development and creating investments in new city- create purposeful dialogue about important issues. The IT
wide transportation improvements. Department continues to enhance the City’s ability to inform
and respond to the community with investment in the City’s
ECONOMIC DEVELOPMENT & HOUSING website and its civic engagement capabilities. Using the City’s
GIS platform, the IT Department launched the City’s Open
During FY 2022, the City anticipates issuing building permits Data and Transparency Dashboard, providing public access
for 302 new housing units, including 152 affordable rental and interaction experiences to City information. Finally,
housing units available to lower income households. The Human Resources has been the central contact for employee
City will continue to process development entitlements for related Covid-19 issues, making employee health and safety
three additional housing projects that could add up to 156 of utmost importance. The MOU for BPOA was extended,
residential units, inclusive of 53 affordable units. There is virtual employee development opportunities and internships
continued efforts to ensure ongoing compliance with State were offered during the pandemic, and HR will be embarking
Housing laws adopted in 2019, including Belmont Zoning in labor contract negotiations with all bargaining units in 2021.
Ordinance amendments to provide objective development Succession planning efforts are an ongoing priority.
and design standards, ensure expedited review, promote

20 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Achievement Highlights

PUBLIC SAFETY QUALITY OF LIFE

The Belmont Police Department is working hard toward The Parks & Recreation Department completed the
transparency, and in doing so, has added to their Belmont North Field ImprovemeWnts project, including
transparency page and streamlined the Police Department’s installation of synthetic turf, energy efficient lighting, and
website. In addition, the department is working side-by- ADA improvements. A Public Art Master Plan was approved
side with a sub-committee of the City Council in an effort to and a Public Art Development fee was implemented to
review and improve police policies and procedures. The expand art opportunities in private developments and
Police Department created a new community outreach on City property. The Department also initiated its Parks,
team tasked with developing educational videos for Recreation and Open Space Master Plan project, which will
the community, and has also created the C.A.R.E. (Crisis be completed in FY21. This project will deliver the 15-year
Assessment, Response and Education) Team to enhance vision by which parks and recreation resources will be
the department’s response to calls of those experiencing allocated and improvements will be made. The Department
a mental health crisis. The C.A.R.E. Team follows-up with provided numerous virtual recreation programs and special
victims, family members and loved ones after a crisis, and events, including a Virtual Sweetheart Dance, Holiday
also provides resources and information. Additionally, the Home Decorating Contests, and a Golden Egg Scavenger
Team provides on-going education to police personnel in Hunt through City parks. Numerous volunteer projects
an effort to improve the Department's response to mental were completed, including open space trail and bridge
health crisis calls. The Police Department has also created improvements, invasive species removal, and library box
a “Community Academy” to further the department’s goal construction and decorating, Parks staff continues to work
of expanding a community oriented policing philosophy. with SMC Fire and Cal Fire to advance fuel reduction in the
Recognizing the importance of community and police City’s open spaces.
interaction and cooperation, the Department’s Community
Academy creates a unique opportunity for an exchange
of ideas and education between the Department and
community members. The Belmont Community Academy
provides participants with an inside look at the Belmont
Police Department by presenting the functions, capabilities
and limitations of the department.

CITY OVERVIEW 21

City Council Vision Statement

DISTINCTIVE COMMUNITY CHARACTER

• Belmont prides itself on being unique.
• Its small-town ambience sets it apart as a tranquil, inclusive, safe, and desirable place to live, work

and play.
• We get involved in town matters because we care about living here.
• We connect with each other in all kinds of gathering places.
• We value and celebrate a strong commitment to diversity, inclusion, safety, equality and dignity for

all individuals in Belmont.
• Our strong sense of community and enjoyment of the town’s assets and activities deepen as we

become better informed and connected.

EASY MOBILITY

• We put a priority on getting out of, into, and through town efficiently.
• Bicyclists, walkers, and other nondrivers get where they’re going easily and safely.
• We require safe residential streets and smooth-flowing thoroughfares.

NATURAL BEAUTY

• We choose to make our home among these beautiful hills, trees, parks, views, and open spaces.
• Our natural surroundings inspire us to play, create, and contemplate.
• Our actions today preserve and enhance Belmont’s beauty to make it even lovelier for future

generations.
• Our wooded residential areas are diverse, peaceful and well maintained.

THRIVING CULTURE

• Belmont is a wonderfully safe, culturally diverse and supportive place to raise a family.
• We facilitate lifelong learning in our academic, artistic, athletic, and social dimensions and we thrive

in interconnection with the rest of the world.
• Our schools and library are the pride of the community.
• Our university is intrinsic to Belmont’s social, artistic and economic life.
• Our playgrounds and athletic fields are of high quality and in high gear.
• The arts thrive in this creative, appreciative town – the arts hub of the Peninsula.
• Our history makes Belmont what it is, and we preserve that heritage for our children.

THRIVING ECONOMY

• A charming, vibrant town center is the heart of our civic and economic life.
• Our economy prospers with a mix of attractive, successful businesses that fit with our community

character.
• We look first into our town shops and restaurants for what we need.
• Education, arts and the economy flourish in concert.

22 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Organizational Values

We believe local government exists because of our
citizen-customer and seek to understand and meet their needs

within the resources available to us.

We are dedicated to the highest standards of
honesty, integrity and ethics in all that we do.

We believe that employees are our most important resource
and the cornerstone of the City's success.

We are dedicated to providing our employees with
the tools, training and incentives necessary to accomplish our mission.

We are dedicated to an open government process
which encourages citizen involvement
in all aspects of municipal activities.

We are dedicated to the fair and respectful treatment of all people,
and we recognize and value

the strengths derived from our diversity.

We are dedicated to responsible fiscal management,
the development of a sound local economy and long-term fiscal stability.

We are dedicated to providing quality services
and continuously improving our service delivery
through relevant, reliable and consistent processes.

We believe that teamwork, partnership and interagency cooperation
synergizes work and improves the quality and consistency of outcomes

by strenghtening and refining ideas, objectives and work products.

CITY OVERVIEW 23

Strategic Focus Areas

INFRASTRUCTURE & MOBILITY

GOAL: A transportation, facilities and infrastructure system that maintains

and improves our community to meet current and future demand.

OBJECTIVES:

• Advance sewer and storm improvements
• Advance pavement and street improvements
• Enhance multi-modal transportation
• Improve parks and facilities

ECONOMIC DEVELOPMENT & HOUSING

GOAL: Local business, land use and housing policies to support

economic development, downtown revitalization and diversity of

housing choices.

OBJECTIVES:

• Coordinate housing and land use

• Implement Economic Development strategy

FISCAL & ORGANIZATIONAL STABILITY

GOAL: Long-term financial stability and investment in our employees to

strengthen organizational development and effectiveness.

OBJECTIVES:

• Ensure fiscal/revenue sustainability

• Strengthen organizational development

PUBLIC SAFETY

GOAL: Forward-thinking public safety services aligned with community

needs, including civic engagement, partnerships and public

education.

OBJECTIVES:

• Ensure public safety - Police and Fire

QUALITY OF LIFE

GOAL: Maintain and enhance Belmont’s character and quality of life in our

community.

OBJECTIVES:

• Promote place-making

• Improve parks and recreational programs and facilities

• Expand communication and outreach

24 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Organizational Chart

CITIZENS OF BELMONT

CITY COUNCIL

(FIRE DISTRICT &
SUCCESSOR AGENCY DIRECTORS)

Davina Hurt Warren Lieberman Charles Stone Julia Mates Tom McCune
Council Member Council Member Mayor
Vice Mayor Council Member

CITY ATTORNEY CITY MANAGER CITY
Scott Rennie Afshin Oskoui COMMISSIONS

CITY CLERK/ COMMUNITY
COMMUNICATIONS DEVELOPMENT
Carlos de Melo
Jozi Plut
Director
Acting Clerk/Communications
HUMAN RESOURCES
FINANCE Cora Dino
Grace Castaneda
Director
Acting Director
PARKS & RECREATION
INFORMATION TECH. Brigette Shearer
John Jones
Director
Director
PUBLIC WORKS
POLICE Peter Brown
Tony Psaila
Director
Police Chief

San Mateo Consolidated Silicon Valley Clean Water South Bay Waste
Fire Department Management Authority

CITY OVERVIEW 25

City Profile

CITY OF BELMONT PROFILE

Location

The City of Belmont is a residential community
located mid-way on the San Francisco peninsula,
midway between San Francisco and San Jose in
the Bay Area. Covering approximately 4.6 square
miles in size, the City is uniquely situated just north
of Silicon Valley. It is bordered by by San Mateo
to the north, Redwood Shores to the east, coastal
mountains to the west, and San Carlos to the south.

The City

Belmont was incorporated in 1926 as a general law Services
city. The City is governed by a five-member City
Council and is administered by a City Manager. The The City provides a full range of municipal
Council members serve at-large four-year terms services including police, planning, building,
and select a Mayor from among its members each sewer and street maintenance, infrastructure,
December for a one-year term. The City Council is community development, parks and recreational
responsible for policy making, adopting the budget, activities, and general administrative government
appointing commissions, and hiring both the City activities. Fire service is provided by the San
Manager and City Attorney. The CityManager Mateo Consolidated Fire Department. Water is
serves as chief executive officer and is responsible provided to the residents of the City of Belmont
for carrying out the policies and ordinances of by Mid-Peninsula Water District, an outside
the Council, overseeing day-to-day operations of agency. Sanitary Sewer Services are provided by
the City, and appointing the heads of the various Silicon Valley Clean Water, which serves Belmont,
departments. Belmont's current population is San Carlos, Redwood City, and Menlo Park. The
estimated at 26,813. City offers sixteen parks, nineteen community
buildings, 300+ acres of open space, and a library.

26 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

CCiittyy PPrrooffiillee

GENERAL FAST FACTS FISCAL & ORGANIZATIONAL
SUSTAINABILITY
1926 Belmont incorporated as a City
4.61 square miles within City limits 135.30 authorized employees
26,813 population* 57% of City workforce will be retirement eligible
64.7% Bachelor's degree or above in 5 years or less
$13.0 million unassigned General Fund reserves
*U.S. Census as of fiscal year 2020

INFRASTRUCTURE & MOBILITY PUBLIC SAFETY

70 miles of streets and alleys 31 sworn police officers
15.14 4.61 square miles within City limits 12 civilian police personnel
26,813 population* 32 police fleet vehicles
64.6% Bachelor's degree or above 29,918 Incidents responded to in 2020
3 minutes 58 seconds average police priority call
ECONOMIC DEVELOPMENT & response time
HOUSING 2 fire stations*
2 fire trucks - Fire Engine 14 and Fire Engine 15
2,072 active business licenses 2,337 calls for fire service
320 new housing unit building permits 4 minutes 58 seconds average fire response time
issued in FY 2021
$135,342 median household income* * Fire protection provided by San Mateo Consolidated Fire Department
60% of homes occupied by owner **
QUALITY OF LIFE
*U.S. Census Bureau
**Data USA 16 developed parks
61.7 acres of developed parks
16 playgrounds
300+ acres of open space
2,089 Senior meals served
244 Online youth & teen recreation programs
offered
430 In-person youth & teen recreation programs
offered

CITY OVERVIEW 27

Basis of Budgeting

FUND ACCOUNTING BUDGET SYSTEM system as one technique of accomplishing budgetary control.
There is no formal provision in departmental budgets for
The City of Belmont’s budget is based upon the principle depreciation and compensated absences (i.e. accrued
of cost centers (i.e., funds, departments, and service areas). vacation and sick leave time), but they are budgeted as
The City of Belmont prepares its budget based upon internal services fund charges.
discrete service centers, which represent the many cost
centers through which services are delivered. This allows All governmental fund budgets are accounted for using the
the City Council to determine with accuracy what the true modified accrual basis of accounting whereby revenues are
cost of delivering a service is and what impacts either recognized when they become measurable and available.
increasing or decreasing appropriations will have on a Likewise, expenditures are recognized when an event or
particular service. This method is consistent with generally transaction is expected to draw upon current spendable
accepted accounting principles. resources. Governmental funds include the General Funds,
Special Revenue Funds, Debt Service Fund, and Capital
The budget is organized on the basis of the fund accounting Projects Funds. All proprietary fund budgets are accounted
system, in which each fund is considered a separate for on a flow of economic resources measurement focus and
budgeting entity. Government resources are allocated to a full accrual basis. These funds include the Enterprise Funds
and expenses accounted for in individual funds based upon and Internal Service Funds.
the purposes for which they are to be spent and the means
by which spending activities are controlled. All operating BUDGETARY CONTROLS
funds’ budgets lapse at the end of the adoption cycle. The
City of Belmont also maintains an encumbrance accounting The City Manager submits to the City Council a proposed
annual operating budget for the ensuing fiscal year. The
operating budget includes proposed expenditures and
the means of financing them and is subjected to public
hearings where comments are obtained for consideration.
The Council adopts the budget through passage of a budget
resolution at which time the proposed expenditures become
appropriations. The budget is effective the following July 1
and may be amended by subsequent resolutions. The City
Manager is authorized to transfer appropriations between
any departments; however, any revisions, which increase the
total appropriations of any fund, must be approved by the
Council. Transfers not included in the original budget must be
approved by the Finance Director. Where not contractually
committed, expenditures may not exceed appropriations at
the fund level. Unencumbered appropriations lapse at year
end.

Activities of the General Fund, Special Revenue Funds,
Debt Service Fund, Capital Funds, and Proprietary Funds
are included in the annual budget. Department heads are
responsible for containing expenditures within their budgeted
appropriations as approved by the City Council. The City
Manager is authorized to transfer appropriations between
any departments that do not exceed the total appropriations
of any fund. Subsequent to the adoption of the budget, all
additional changes to the budget that have a financial impact
at the fund level require City Council approval.

28 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Budget Preparation Process

ANNUAL BUDGET CALENDAR

Like any large, complex organization, the process to develop and produce the budget is continuous
throughout the fiscal year, which runs from July 1 to June 30. The major activities and milestones are as
follows:

July Through September • Annual mid-year financial report is delivered to
Council.
• Encumbrances are incorporated into
department budgets and long-term financial April Through June
plans of each applicable fund.
• Departmental operating and/or capital budget
• Preliminary financial results from the previous requests are received and evaluated by
fiscal year are reported to Council. Finance and the City Manager’s Office.

October Through December • Revenue projections for major General Fund
tax revenues and long-term financial plans for
• Final financial results from the previous fiscal applicable funds are finalized.
year, in the form of the Comprehensive Annual
Financial Report, are presented to Council. • City Council approves Master Revenue
Schedule during a public hearing.
• Initial scoping meetings are held between
Department Heads and the City Manager • City Council and Belmont Fire Protection
to discuss any significant changes to the District (BFPD) Board hold first public hearing
departmental operating or capital budget that on the proposed budget and provide
will be proposed for the upcoming cycle. feedback and guidance prior to the delivery of
the proposed budget.
January Through March
• Audit Committee reviews proposed budget.
• City Council holds its annual goal setting • City Council and BFPD Board hold second
session to identify budget priorities.
public hearing and receive recommendation
• Budget calendar for the following fiscal year’s from the Audit Committee on the proposed
budget is established and approved by budget.
Council. • Final budget adopted by the City Council and
BFPD Board.
• Development of internal service charges and
cost allocations begins.

CITY OVERVIEW 29

Annual Budget Calendar

Day Date Event Responsibility 
Finance 
Tuesday 1/12/21 Adopt motion approving Budget Calendar

Monday 1/25/21 Council Priority Workshop All Departments
• FY 2022 Strategic Planning & Financial & Finance
Tuesday 2/23/21 Finance & 
Monday 3/8/21 Forecast All Departments
• Priorities and policy considerations
FY 2021 Mid-Year Review and Adoption

• Issue budget priorities, detail budget Finance
instructions and forms to departments.

• Distribute personnel allocations and
revenue forms to departments

Wednesday 3/3/21 Submit personnel allocations, proposed All Departments
initiatives, departmental operating and capital
requests and revenue estimates to Finance

Monday - Friday 4/12/21- Budget conferences with departments City Manager,
4/16/21 Finance &

All Departments

Monday 4/19/21 Begin compilation of FY 2022 Budget and Finance
preparation of budget message

Friday 5/14/21 Distribute proposed FY 2022 Budget Finance

Tuesday 5/25/21 • Introduction of the proposed FY 2022 All Departments 
TBD 6/2/21 Budget and department presentations City Manager, 
Finance
• Set public hearing on adopting the FY
2022 Budget and setting non-Prop. 218
fees and charges – June 8, 2021

Audit Committee reviews proposed FY 2022
Budget

Tuesday 6/8/21 • Recommendation from Audit Committee City Manager,
Finance
• Adopt FY 2022 Budget

• Public Hearing - City Council and Fire
Board

• Adopt resolutions implementing FY 2022
Budget

() denotes Council or Council Standing Committee Action

30 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

GFOA Award - Comprehensive
Annual Financial Report

CITY OVERVIEW 31

32 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

FINANCIAL TRENDS

FINANCIAL TRENDS 33

Major General Fund Tax Revenues

PROPERTY TAX

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Estimated

Fiscal Year

MAJOR GENERAL FUND TAX REVENUES: PROPERTY TAX

Property tax is the General Fund’s largest revenue overall baseline in the General Fund's primary
source. Revenues have grown from just over $5 million revenue source. The expectation moving
in fiscal year 2011 to over $10 million in fiscal year 2020, forward and as reflected in the ten-year financial
and that is attributable primarily to the strong growth plan is a reduction in property transaction
in assessed valuations. As demonstrated in the table, activity to get back to a more sustainable
over the past ten years, assessed valuations in the baseline growth, and a reduction in residual
City have increased an average of 5.1% annually. This property tax until the RDA bonds can be paid
includes one year of impact from the Great Recession off and the Successor Agency is fully dissolved.
where assessed valuations decreased slightly, as well
as the first year of the recovery, where the increase CHANGES IN ASSESSED VALUATIONS
was less than 2%. The assessed valuation in Belmont
is heavily weighted toward residential at almost 90%, FISCAJLUYNEEA3R0ENDS % CPHRAIONRGYEEFARROM
and with many residential properties, especially ones 2011 (1.4%)
that had been in long-term ownership, changing 2012 1.6%
hands during the strong and extended period of 2013 3.5%
recovery from the Great Recession, growth in this 2014 6.4%
revenue source has been significant in the past 2015 3.9%
several years. However, such extended growth is not 2016 8.3%
expected in the long-term. Impact from the COVID-19 2017 7.4%
pandemic has resulted in a 1% inflation adjustment 2018 6.5%
factor in fiscal year 2022 for assessed valuations, 2019 7.3%
compared to 2% that had been applied in prior years. 2020 7.5%
Furthermore, a decision from the California Court 5.1%
of Appeals in 2020 has modified the methodology AVERAGE
for distribution of redevelopment agency residual
property tax, which resulted in Belmont receiving less
residuals beginning fiscal year 2021, and lowering the

34 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Major General Fund Tax Revenues

SALES TAX

$4,000,000
$3,000,000
$2,000,000
$1,000,000

$-

1% Sales Tax Fiscal Year Trendline
Measure I

MAJOR GENERAL FUND TAX REVENUES: SALES TAX

This chart shows sales tax revenues trend over the last ten years, along with the fiscal year 2021
estimates. The blue bar is the 1% local sales tax, the green bar is the 0.50% Measure I sales tax passed
by Belmont voters that began in April 2017, and the orange line is the trendline for the 1% local sales
tax. As demonstrated by the chart, sales tax fell significantly below the trendline in fiscal year 2020,
which reflected the impact of the COVID-19 pandemic and the recognition of sales tax deferments from
businesses at the onset of the pandemic. As more data became available, however, businesses who
were able to have continued to make their sales tax payments instead of deferring. Consumers with
disposable income redirected their spending from leisure travel and dining to luxury auto purchases
and online spending. With Belmont's major sales tax contributors coming from the autos category, their
performance have helped towards the recovery in this revenue source. Further, sales tax from internet
sales have begun to be unilaterally assessed by the end of 2019 as a result of the South Dakota v.
Wayfair Supreme Court decision. With consumer behavior shifting heavily to online spending especially
during the pandemic, the expectation and as reflected in the long-term financial plan is for sales tax,
both the 1% and Measure I, to perform above the trendline in fiscal year 2021 before adjusting back to
a sustainable recovery close to the trendline.

FINANCIAL TRENDS 35

Major General Fund Tax Revenues

TRANSIENT OCCUPANCY TAX

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0

Fiscal Year

MAJOR GENERAL FUND TAX REVENUES: TRANSIENT OCCUPANCY TAX

Transient occupancy tax (TOT) is a tax on hotel or other short-term rental occupants whose stays are
30 consecutive nights or less. This revenue is largely dependent on the overall health of the economy.
As demonstrated by this chart, revenues have been steadily increasing as the economy recovered
from the Great Recession and experienced an extended period of economic growth. Growth in TOT
revenues was amplified in fiscal years 2019 and 2020 as two new hotels opened, which increased the
overall tax base, along with the TOT tax rate increasing from 10% to 12% in January 2019. However, the
COVID-19 pandemic stopped the growth abruptyly, and the reactive nature of TOT to the economy
was clearly demonstrated. Occupancy rates dropped precipitously during the pandemic as travel
was restricted, and have remained low throughout the current fiscal year 2021. In Belmont, hotels
cater mostly to business travelers. This revenue source is projected to stay low and recover slowly.
The impacts on travel, especially business travel, and on the overall health of the economy, will be
monitored closely, and the long-term financial plan will be adjusted accordingly.

36 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

General Fund Ending Balance

ENDING BALANCE

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Estimated

Fiscal Year

GENERAL FUND ENDING BALANCE

This graph shows the ending fund balance for the General Fund over the past ten years, along with
an estimated ending balance for fiscal year 2021. As evidenced by the low level of reserves between
fiscal years 2011 and 2013, the Great Recession had a significant impact on the health of the General
Fund. While the Great Recession officially ended by fiscal year 2009, it took several years for the fund
balance to be replenished. Reserves steadily increased as the period of economic growth extended.
However, the fund balance was once again threatened, and has been taking losses as major sources
of General Fund revenues were impacted significantly from the COVID-19 pandemic. Additionally,
the change in methodology for the calculation of redevelopment agency residual dollars has further
impacted property tax, the largest source of General Fund revenues. Federal and state stimulus relief
funding are helping to mitigate the impact, but the funding are only one-time, while the impact is
expected to continue. In the long-term financial plan, the existing fund balance will be drawn down for
service-level stability and strategic utilization for one-time needs, while long-term adjustments can be
made to achieve long-term sustainability.

FINANCIAL TRENDS 37

Citywide Employees

The following table shows Citywide permanent staffing over the past three years by department.

DEPARTMENT FY 2019 FY 2020 FY 2021

City Attorney 1.00 1.00 1.00
City Council 5.00 5.00 5.00
City Manager 1 4.00 4.00 4.00
Community Development 9.00 9.00 9.00
Finance 2 9.00 8.00 7.00
Human Resources 2.00 2.00 3.00
Information Technology 4.00 4.00 4.00
Parks & Recreation 24.30 24.30 24.30
Police 44.00 44.00 44.00
Public Works 33.00 33.00 33.00
Total City 135.30 134.30 134.30

1 City Clerk was elective rather than appointive prior to November 5, 2019.
2 City Treasurer was elective rather than appointive prior to November 5, 2019. Finance Director is appointed as City Treasurer subsequently.

38 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

FINANCIAL TRENDS 39

40 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

BUDGET OVERVIEW

BUDGET OVERVIEW 41

Citywide Operating Budget

FUND # FUND NAME FY 2020 FY 2021 FY 2022
ACTUALS ESTIMATES ADOPTED
General Funds
101 General Fund 22,755,147 23,889,350 BUDGET
General Funds Total 22,755,147 23,889,350
Special Revenue Funds 22,752,279
205 Recreation 3,142,564 2,551,544 22,752,279
206 Library Maintenance and Operation 370,046 379,988
207 Athletic Field Maintenance 55,000 2,673,091
208 City Trees 45,831 50,276 415,430
210 Development Services 39,704 4,119,093 80,000
212 General Plan Maintenance 3,777,673 130,000 73,990
225 Public Safety Grants 154,069 - 5,130,413
227 Supplemental Law Enforcement 218,880 170,000
231 Street Maintenance 1,295 5,000
234 Street Improvement 213,331 2,410,828 210,989
275 Affordable Housing 2,312,158 60,804
277 Inclusionary Housing 66,320 200,792 2,357,329
Special Revenue Funds Total 468,573 61,177
Capital Projects Funds 1,000,000
308 General Facilities - 11,177,205 281,899
341 Planned Park 10,591,563 -
343 Open Space 8,273
Capital Projects Funds Total 176,123 731,191 11,459,318
399,027 19,956
759,419 41,498
12,500 731,667
587,650
17,465
790,630

42 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Citywide Operating Budget

FUND # FUND NAME FY 2020 FY 2021 FY 2022
ACTUALS ESTIMATES ADOPTED
Debt Service Fund
406 Library Bond Debt Service 661,018 684,416 BUDGET
Debt Service Funds Total 661,018 684,416
Enterprise Funds 684,441
501-505 Sewer Collections 10,066,506 10,603,697 684,441
507 Sewer Treatment Facility 8,366,809 5,910,350
525 Storm Drainage 2,352,567 9,474,342
530 Solid Waste 2,119,817 430,223 5,413,577
Enterprise Funds Total 343,075 2,033,065
City Operating Budget 20,896,206 19,296,836
223 Belmont Fire Protection District 55,491,584 55,807,227 517,954
Total Citywide Operating Budget 10,474,421 17,438,937
Internal Service Funds* 65,966,004 10,771,063 53,125,605
570 Workers' Compensation 66,578,290 11,559,733
571 Liability Insurance 593,354 64,685,338
572 Self-Funded Vision 622,515 217,401
573 Fleet and Equipment Management 523,810 657,475
574 Facilities Management 15,719 1,593,128
575 Benefit Prefunding 3,278,543 9,413
Internal Service Funds Total 3,988,351 13,188
1,807,813 1,838,396 3,494,059
1,851,962 1,610,749 2,044,326
8,169,907 8,188,121 1,482,404
9,284,581

* Informational figures only. Not included in totals as they are already included in department budgets.

BUDGET OVERVIEW 43

Citywide Operating Budget

CATEGORY FY 2020 FY 2021 FY 2022
ACTUALS ESTIMATES ADOPTED
City Operating Budget
Salaries and Wages 14,265,043 14,205,455 BUDGET
Benefits 8,767,730 9,088,269
Supplies and Services 10,992,564 14,999,818
Administrative and Other 10,433,272 10,993,967 10,115,207
Capital Outlay 8,966,376 4,936,949 10,656,950
Debt Service 9,423,451 5,590,024 8,268,199
City Operating Budget 3,635,713 55,807,227 3,406,544
Belmont Fire Protection District 55,491,583 5,678,888
Salaries and Wages - 53,125,605
Benefits 435,000 85,234
Supplies and Services 59,052 9,614,494 -
Administrative and Other 1,071,335 92,692
Belmont Fire Protection District 9,597,201 10,771,063 10,336,099
Total Citywide Operating Budget 383,168 66,578,290 1,130,942
Totals do not include internal services. 11,559,733
10,474,421 64,685,338
65,966,004

44 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Citywide Operating Budget

CITYWIDE OPERATING BUDGET
FY 2022

CCIITTYYCWWITI$IDDY6EWE4.O7IODPMPEEEILRORLAIPAOTETNIRINNAGGTBIBNUUGDDBGGUEEDTTGET
FFYY22F00Y2222022

$$6644..7$76MM4I.IL7LLLMIIOOILNNLION

99%% 9%

55%% 5% 2233%% 23%

1155%% 15%

1166%% 16%

3322%% 32% SSuuppppliSleieusspapanlnidedsSSeaenrrvdvicicSeeessrvices
DDeebbttSDSeeerbrvvticicSeeervice
SSaalalarrieiSesaslaaanrnidedsWWaanaggdeeWss ages BBeenneefBfititsesnefits
AAddmminiAnisidstmtrraaitntiviivseetraaantnidvdeOOatthnhederrOtheCrCaappititaCallaOOpuiuttatlallayOy utlay

BUDGET OVERVIEW 45

Citywide Sources of Funding

FUND # FUND NAME FY 2020 FY 2021 FY 2022
ACTUALS ESTIMATES ADOPTED
General Funds
101 General Fund 26,695,895 28,399,367 BUDGET
102 Measure I 1,649,982 1,907,395
General Funds Total 26,353,893
Special Revenue Funds 28,345,877 30,306,762 2,022,445
205 Recreation
206 Library Maintenance and Operation 1,931,307 797,822 28,376,338
207 Athletic Field Maintenance 321,883 307,610
208 City Trees 111,345 1,788,861
209 Senior Services Donation 55,175 307,415
210 Development Services 11,088 10,375 76,277
212 General Plan Maintenance 4,446 389 6,306
225 Public Safety Grants 2,989,605 5,322
227 Supplemental Law Enforcement 156,109 3,785,915
231 Street Maintenance 516,906 3,994,197
232 Road Maintenance & Rehabilitation 389 139 201,811
156,376 193,781 132
Account Street Project 2,452,549 1,854,111
233 Measure W 480,221 487,756 196,882
234 Street Improvement 1,941,027
237 Traffic Impact - 261,601 533,776
239 Public Art 2,093,349 2,094,926
275 Affordable Housing 265,601
277 Inclusionary Housing - - 3,602,211
Special Revenue Funds Total - - 1,688,095
Capital Projects Funds 94,252 280,748 555,342
308 General Facilities 323,929 2,006 4,140,726
310 Infrastructure Repair 11,070,678 10,705,430
312 Comcast 281,941
341 Planned Park 14,231 3,839 19,585,922
342 Park Impact Fees 47,768 311,100
343 Open Space 7,538 3,647
704 Special Assessment District 6,061,384 1,449 1,223,879
Capital Projects Funds Total 20,073 10,982
2,578 1,069,414 1,377
3,259 10,433
6,156,832 6,891 3,180,669
1,209
1,404,884 847
1,148
4,422,000

46 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Citywide Sources of Funding

FUND # FUND NAME FY 2020 FY 2021 FY 2022
ACTUALS ESTIMATES ADOPTED
Debt Service Fund
406 Library Bond Debt Service 678,058 676,491 BUDGET
Debt Service Funds Total 678,058 676,491
Enterprise Funds 676,741
501-505 Sewer Collections 13,343,760 16,528,947 676,741
507 Sewer Treatment Facility 3,621,987 3,231,505
525 Storm Drainage 1,001,677 1,044,496 17,507,249
530 Solid Waste 605,905 493,509 3,232,854
Enterprise Funds Total 18,573,328 1,022,185
Internal Service Funds* 21,298,457
570 Workers' Compensation 565,300 500,197
571 Liability Insurance 778,271 707,164 22,262,485
572 Self-Funded Vision 11,798 1,091,196
573 Fleet and Equipment Management 775,365
574 Facilities Management 4,518,200 10,703 484,466
575 Benefit Prefunding 1,648,956 5,257,229
Internal Service Funds Total 1,520,106 1,529,922 11,899
City Sources of Funding 9,042,631 1,450,013 5,087,595
223 Belmont Fire Protection District 65,593,783 10,046,226 1,683,026
Total Citywide Sources of Funding 13,341,548 64,466,200
78,935,331 11,626,206 1,457,812
* Internal service charges not included in totals. 76,092,406 9,500,163
75,563,406
14,691,137
90,254,543

BUDGET OVERVIEW 47

Citywide Sources of Funding

CATEGORY FY 2020 FY 2021 FY 2022
ACTUALS ESTIMATES ADOPTED
City Sources of Funding
Business License Tax 921,183 1,185,620 BUDGET
Fines and Forfeitures 160,211 159,921
Franchises 1,383,475 1,072,512
Intergovernmental 3,579,092 1,368,702 164,000
Library Special Assessment Tax 980,803 6,230,839 1,394,451
Licenses and Permits 1,235,053 9,986,858
Miscellaneous 902,174 979,697 979,697
Other Financing Sources 6,000,000 1,824,000 1,844,000
Property Tax 10,234,058 1,808,382 422,344
Property Transfer Tax 241,880 3,750,000
Sales Tax 5,826,711 - 9,092,774
Service Charges 27,120,421 8,866,410 300,000
Transient Occupancy Tax 3,793,530 6,839,255
Use of Money and Property 3,215,192 316,000 36,413,446
City Sources of Funding 65,593,783 6,498,040 1,788,540
Belmont Fire Protection District 32,421,008 1,515,529
Intergovernmental 64,290 1,366,745 75,563,406
Miscellaneous 98,506 1,440,835
Property Tax 12,986,186 64,466,200 64,290
Use of Money and Property 192,566 -
Belmont Fire Protection District 13,341,548 64,290
Total Citywide Sources of Funding 78,935,331 - 14,587,974
38,873
11,520,997
40,919 14,691,137
90,254,543
11,626,206
76,092,406

48 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET

Citywide Sources of Funding

CITYWIDE SOURCES OF FUNDING

CITYWICDIETCYCISTWIOTYFIYWUDYWREI2DCISD0EEOE2SSU2OSOROUFCUREFRCSUCEONESFSDOFOIFNUFFGNUFDUNINNDDGININGG
$89F.Y6 2M0I2LF2LYIFO2YF0NY22020222
$89.6 M$8I$9L$8.L689IO9.M6.N6IMLMLIILOILNILOIONN

0% 4%0%020%4%%%4%4%2%2%2%
10% 10%1010%%

39%393%9%
39%

44%44%4%

44%

TaxTaTRxaexvReRenveuevenesuneuses FeeFseFeasensdanaCdnhdCarChgaherasgregses InteInrIgtneotrevgreogrvonevmrenermnnmteanel tnatlal

Tax RevenMuiesMcsMeisliclsaecnleleallonauensoeuosus Fees andOtChOheOtrahtrFehgireneFrasiFnnicaninacngicnSignoguSroScuoerusIcnrectesersgoUvseeUrUnsoemsf eMoefoonMfntaMeolynoenayenydanaPdnrodPprPeorrpotyepretryty

Miscellaneous Other Financing Sources Use of Money and Property

BUDGET OVERVIEW 49

Schedule of Interfund Transfers

FUND FY 2021 ESTIMATES FY 2022 ADOPTED BUDGET

General Fund Transfer Transfer
To Recreation Fund In Out In Out
To Development Services Fund
To Supplemental Law Enforcement Fund - 1,800,000 - 1,000,000
To Street Maintenance Fund - 750,000 - 1,000,000
To Storm Drainage Fund - 25,000 - 15,000
Total -- - 500,000
Recreation Fund - 423,675 - 500,000
From General Fund - 2,998,675 - 3,015,000
Total
Development Services Fund 1,800,000 - 1,000,000 -
From General Fund 1,800,000 - 1,000,000 -
From General Plan Maintenane Fund
Total 750,000 - 1,000,000 -
General Plan Maintenance Fund - - 200,000 -
To Development Services Fund - 1,200,000 -
Total 750,000
Supplemental Law Enforcement Fund
From General Fund - - - 200,000
Total - - - 200,000
Street Maintenance Fund
From General Fund 25,000 - 15,000 -
Total 25,000 - 15,000 -
Measure W Fund
To Street Improvement Fund - - 500,000 -
Total - - 500,000 -
Street Improvement Fund
From Measure W Fund - 400,000 - -
Total - 400,000 - -

400,000 - - -
400,000 - - -

50 CITY OF BELMONT ADOPTED FISCAL YEAR 2022 BUDGET


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