Operating Budget Manual

CITY OF ESCONDIDO • CALIFORNIA

December 2017

Prepared by the Budget Division

CITY OF ESCONDIDO

Operating Budget Manual Table of Contents

DEC

2017

1. GETTING STARTED ................................................................................................................................ 1

Introduction ............................................................................................................................................. 1

What is a Budget .............................................................................................................................. 1

Budget News .......................................................................................................................................... 1

Preparation Schedule/Due Dates ........................................................................................................... 1

Budget Cycle .......................................................................................................................................... 2

Pre-Budget Preparation .......................................................................................................................... 2

Budget Staff ............................................................................................................................................ 3

2. WORKFLOW ............................................................................................................................................ 5

Budget Checklist ................................................................................................................................. 5

Line Item Detail ................................................................................................................................... 5

Revised Prior Year ........................................................................................................................... 6

Salary and Benefit Worksheet ......................................................................................................... 6

Overhead Rates for Other Pay ........................................................................................................ 7

Maintenance and Operations ........................................................................................................... 8

Capital Outlay ................................................................................................................................... 8

Internal Service Funds/Charges ...................................................................................................... 8

Allocations Out ................................................................................................................................. 9

Sources and Uses ............................................................................................................................. 10

Revenue Projections (Sources) ..................................................................................................... 11

Expenditure Projections (Uses) ..................................................................................................... 11

Reserves/Fund Balance ................................................................................................................. 11

Executive Summary .......................................................................................................................... 12

Department Pictures .......................................................................................................................... 13

Department Organization Charts....................................................................................................... 13

Department Descriptions ................................................................................................................... 13

Monitoring Budgets ............................................................................................................................... 13

Budget Errors in PeopleSoft .......................................................................................................... 14

Budget Adjustments ....................................................................................................................... 15

Carryovers ............................................................................................................................................ 16

Reporting .............................................................................................................................................. 17

3. APPENDIX .............................................................................................................................................. 19

Commonly Used Expenditure Account Numbers ................................................................................. 19

Sample Budget Submittal/Packet ......................................................................................................... 21

Frequently Asked Questions ................................................................................................................ 30

Budget Glossary ................................................................................................................................... 32

Section 1

Getting Started

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Getting Started 1

INTRODUCTION

If you are new to the operating budget

process, welcome! This budget manual has

been prepared by the Budget Division for

each department to be used in the

preparation and administration of each

budget that is requested to be adopted by

City Council in June. Department Heads and

Budget Coordinators are encouraged to

acquaint themselves with this manual.

You will notice the following icon

throughout the Operating Budget Manual:

. It will be next to items that are

considered to be important to remember

while creating your budget submittal. Before

turning your budget in to the Budget Division,

please go back and verify that all of these

requirements have been met.

This manual does not include

information regarding the Capital

Improvement Budget.

WHAT IS A BUDGET?

A financial plan and guide that

consists of many different funds that

operate like a personal checkbook

A numerical representation of

Council priorities and goals

Funding levels for City services

BUDGET NEWS

At the beginning of the budget

process, the Budget Division will issue a

budget newsletter to each department. This

newsletter may contain guidance information

such as current revenue constraints,

economic or community conditions, City

Manager’s direction regarding required

expenditure levels, employee wage and

benefit changes, location of budget materials

and due dates.

PREPARATION SCHEDULE/DUE DATES

Budget preparation can be a time-

consuming process and generally takes

about six months to complete. Important key

events and due dates are listed below (these

dates are subject to change):

Month Task

December Determine available fund balances

Budget News distributed

Budget line item detail and sources and uses worksheets become available for use by departments

1

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Getting Started 1

Month Task

January Salary and benefit worksheets distributed to departments

Budget submissions due for benefit - related Internal Service funds

February Budget submissions due for General Fund and remaining Internal Service Fund departments

March Budget submissions due for Special Revenue, Debt Service and Enterprise Funds

Mid-year financial report to Council

Finance Staff meet with City Manager to review summary of all budget requests

April Budget kick-off Council meeting

May* Preliminary budget document distributed

June Budget presented to Council

July Adopted budget projections posted to financial system and departments begin monitoring their budgets

August Requested carryover of prior year budget amounts due

September- December

Final close of prior fiscal year

*Major budget changes received after May 15th will not be

included in the preliminary budget document provided to

Council, but will be discussed at the June budget hearing and

proposed as an amendment to the preliminary budget

document to be included in the final budget document.

BUDGET CYCLE

The budget cycle begins in around

December of each year. Once departments

finish creating their projections and the

Budget Division agrees that they are

consistent with budget direction and policy,

they are summarized and presented to the

City Manager and then to the City Council for

approval. Upon adoption, the annual

operating budget is applied and departments

begin monitoring and evaluating their

budgets and adjust as necessary throughout

the year until the fiscal year is closed. The

budget cycle is an ongoing process.

PRE-BUDGET PREPARATION

It is important to always code/charge

each financial transaction to the correct

account, not just where there is available

budget. This will provide useful historical

information on spending and be helpful when

it comes time to start projecting for the new

budget year.

Some additional procedures that can

be done to ensure successful budgeting are

as follows:

Review and chart out several years’

worth of budget vs. actual amounts

Track percentage changes

Look at the timing of revenues and

expenditures

Budgetary Forecasting

Budget Approval

Implement Budget

Monitor, Evaluate, & Adjust Budget

2

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Getting Started 1

Identify known changes for next year

and adjust accordingly

Keep Council, City Manager and

department goals and objectives in

mind when developing your budget

BUDGET STAFF

The following staff can help answer your

Operating Budget related questions:

Sheryl Bennett

Deputy City Manager

Administrative Services

x4589

Joan Ryan

Assistant Director of Finance

x4338

Jodi Coco

Budget Manager

x4063

Depending on the area of your

question, other Finance Staff can also be

helpful:

Edid Molina

Finance Manager

x4580

-Home Program

-CDBG Admin

-Warehouse

Christina Holmes

Revenue Manager

x4620

-Vehicle Parking District

-Successor Agency-Housing

-Mobilehome Park Management

Becky Le

Treasury Manager

x4336

-Interest Revenue

Michelle Lefever

Accountant II

x4334

-Recreation

-Reidy Creek Golf Course

Scott Peterson

Accountant II

x4316

-Landscape Maintenance Districts

-Water

-Wastewater

-Fleet Services

3

Section 2

Workflow

4

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 BUDGET CHECKLIST

The following is a list of documents to be

considered for each budget submittal:

Line-Item Detail

Overhead Calculations for Other Pay

Types

Allocation Out Calculation

Worksheet

Sources & Uses

Internal Service Charges Calculation

Worksheet

Executive Summary

Department Pictures

Department Organization Charts

Department Descriptions

Not all items on this checklist will

apply to every department. These items will

be discussed in detail below. An example

budget submittal/packet is located in the

Appendix section of this manual. Depending

on the Fund type (General Fund, Special

Revenue, Debt Service, Enterprise, or

Internal Service) that your department is

within, budget submissions are due

sometime between January and March (See

Preparation Schedule/Due Dates in Section

1). Please forward all items together

to the Budget Division electronically and

remember to round all amounts to the

nearest 5 or 0.

LINE ITEM DETAIL

The line item detail is a workpaper

worksheet that is not included in the actual

adopted operating budget document.

Templates of these worksheets become

available by the end of December or shortly

after the last Council meeting in December

and are located at P:\Temp:\Finance\

Operating Budget\FY xxxx-xx. It includes

prior year revised and current year

expenditure projections and five main

categories: Employee Services,

Maintenance and Operations, Capital,

Internal Service Charges and Allocations.

These areas will be discussed further below.

New items under each account number can

be added to the end of the list. They do not

need to be added in alphabetical order. Also,

if a description needs to be changed, the old

description can be struck out and the new

description can be added. Please submit

any changes to budgets after submission

directly to the Budget Manager electronically.

The Budget Division does not go back and

check for any changes to worksheets placed

on the PTemp:\ drive.

2013-14 2014-15

REVISED BUDGET

001-034 VIDEO SERVICES

5004-001-034 TEMPORARY PART-TIME 29,400 37,500

5025-001-034 EMPLOYEE OVERHEAD 1,000 1,580

TOTAL, EMPLOYEE SERVICES 30,400 39,080

5101-001-034 OFFICE/OPERATING SUPPLIES

Misc Office Supplies 150 150

Video/VCR Tapes 1,600 1,600

1,750 1,750

5126-001-034 MAINTENANCE OF EQUIPMENT

Audio and Video Equipment 11,500 4,450

5131-001-034 PROFESSIONAL SERVICES/CONTRACTS

Channel 19 Program Resources 600 600

5162-001-034 DUES AND SUBSCRIPTIONS

Magazines 20 20

Scanatoa Membership 120 120

140 140

TOTAL, M & O 13,990 6,940

5172-001-034 TELEPHONE 690 720

5178-001-034 OFFICE AUTOMATION 5,095 5,345

TOTAL, INTERNAL SERVICE CHARGES 5,785 6,065

SUBTOTAL, VIDEO SERVICES 50,175 52,085

5902-001-034 ALLOCATED OUT

Neighborhood Services/CDBG (450) (470)

Water (7,960) (8,260)

Wastewater (4,210) (4,370)

Capital Improvement Projects (3,225) (3,480)

(15,845) (16,580)

TOTAL, VIDEO SERVICES 34,330 35,505

CITY OF ESCONDIDO

FY 2014-15 Operating Budget

Line Item Detail

5

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 The following is the expenditure account number format used by the City of Escondido:

Account-Fund-Department.

REVISED PRIOR YEAR

The revised prior year column reflects projections adopted by Council in the prior year

plus any budget adjustments that were posted through December. These amounts will be

updated by the Budget Division and included in the Line Item Detail worksheets that become

available in December. Please do not change or delete any of the information in this

column.

SALARY AND BENEFIT WORKSHEET

Open enrollment for benefits occurs in October/November of each year. Once the Human

Resources department has had a chance to process all of the benefit changes and the Personnel

division has processed any major changes to salaries, the Budget division begins reconciling

positions and creating the salary and benefits (S & B) worksheet.

This worksheet includes regular full-time, grant-funded and regular part-time salary costs,

as well as the overhead costs for these positions. Salary costs include all known scheduled step

increases and negotiated salary increases. Overhead costs include projected changes to the

cost of benefits. The formula for Other Employee Overhead amount is the SUI (State

Unemployment Insurance) rate + the Medicare rate x salary. The resulting variable overhead

amount is then added to the following fixed overhead costs: Dental, Life Insurance and Benefits

Administration. Bilingual pay and cafeteria plan costs are also included on the S & B worksheet.

Changes to salary and benefit information resulting from the negotiation process, promotions, etc.

will continue to be made up until mid-March.

The S & B worksheet does not include costing information for temporary part-time

(account 5004) positions. Salary and overhead projections for these positions are costed by the

departments and reviewed by the Budget Division. The following queries within the PeopleSoft

HRMS system may help departments obtain information needed for their temporary part-time

projections: (1) ESC610B_ACTIVE_PT1_DEPT - This query provides the hourly rate for each

temporary part-time employee and (2) ESC331__PT_HOURS_WORKED - This query provides

the number of hours worked each pay end date for each temporary part-time employee as well

Fund Dept Account Union Job Description Count

Projected

FY 17-18

Salary

(5001/2/3)

Bilingual

(5001)

Other

Employee

Overhead

(5025)

PERS

(5026)

Medical

(5027)

Workers'

Comp

(5028)

Proj. CAF

Plan Amt

(5030)

1 5 5001 EME City Treasurer 1 97,488 - 2,803 9,934 15,574 546 5,400

City Treasurer Total 1 97,488

1 5 5001 UCT Sr Accounting Assistant 1 48,407 - 1,974 4,933 5,786 271 3,136

Sr Accounting Assistant Total 1 48,407

1 5 5001 MGT Treasury Manager 1 83,031 - 2,559 8,461 15,574 465 4,521

Treasury Manager Total 1 83,031 - 7,336 23,328 36,934 1,282 13,057

6

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 as their current retirement plan. The path to

the queries in HRMS is: Main

Menu/Reporting Tools/Query/Query

Manager.

Beginning in fiscal year 2017/18,

PERS changed the method of billing cities for

PERS contributions. PERS plans will now be

billed as a percentage of payroll for the

normal cost portion and as a monthly dollar

amount for the unfunded liability portion. As

a result, account 5026 was renamed PERS-

Normal Cost and account 5029, PERS-

Unfunded Liability was created. The normal

cost portion will be projected based on a

percentage of each positions projected

salary and included on the S & B. The total

annual unfunded liability portion will be

allocated across department budgets based

on projected salary and it will not be included

on the S & B. Departments that allocate out

salary and benefits to other funds will also

allocate out a portion of the unfunded liability

(except for CDBG-Admin, which allocates

out to CDBG CIP and the two funds are

combined for financial statement purposes).

The S & B worksheet is distributed to

departments in January and should be

reviewed by departments for accuracy.

Please keep in mind that the City budgets

conservatively. That means vacant positions

will be costed at the middle of the salary

range and their medical benefits are costed

at the family rate. Once the Budget Division

and each department agree with the

information, this worksheet is used by the

departments to populate the current year

employee services section of the Line Item

Detail worksheet.

If a department plans on making

changes to employee services such as

adding positions or completing a

reorganization of staff, these types of

changes will need to be reviewed by the

Human Resources department and

approved by the City Manager prior to each

budget due date. The Budget Division can

assist departments with projecting the

cost/savings resulting from these changes, if

needed. The Compensation Plan report can

be used by departments to project salary

information for each position. The path to

this report in PeopleSoft HRMS is: Main

Menu/Escondido Applications/HRMS/HRMS

Reports/Compensation Plan. Please

do not include these changes in your

submitted Line Item Detail until they have

been discussed and approved by the City

Manager. Finance, HR and the City

Manager all need to be on the same page

before any item is included within the budget

document that is presented to City Council.

OVERHEAD RATES FOR OTHER PAY

Other pay items such as Overtime,

Holiday Pay, Shift Pay, etc. and applicable

overhead are also costed by each

14-15 Overhead Rates

UCT SUP M & O ACE POL NSF NSP NSX FIR FM

Overtime/Callback

Wk Comp 1.87 4.81 5.39 2.61 6.30 4.11 2.15 2.15 4.11

Unemployment 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Medicare 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

3.47 6.41 6.99 4.21 7.90 5.71 3.75 3.75 5.71

Temp Part Time(TPT)

Wk Comp 2.61 2.61 2.61 2.61 2.61 2.61 2.61 2.61 2.61

Unemployment 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Medicare 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

TPT Levels 3 & 4 4.21 4.21 4.21 4.21 4.21 4.21 4.21 4.21 4.21

PERS 26.92 26.92 26.92 26.92 26.92 26.92 26.92

TPT Level 2 = 1,000 - 1,500 hrs/yr. 31.13 31.13 31.13 31.13 31.13 31.13 31.13

Bilingual Pay/Crew Leader

Holiday Pay (Time Used)

Wk Comp 1.87 4.81 5.39 2.61 6.30 4.11 2.15 2.15 4.11

PERS 26.92 26.92 26.92 26.92 36.92 26.92 26.92 26.92 36.92

Unemployment 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Medicare 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

30.39 33.33 33.91 31.13 44.82 32.63 30.67 30.67 42.63

Stand By:

Medicare 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

Float & Fire Holiday Pay

Wk Comp 1.87 4.81 5.39 2.61 6.30 4.11 2.15 2.15 4.11 4.11

PERS - Fire only 36.92 36.92

Unemployment 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Medicare 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

3.47 6.41 6.99 4.21 7.90 5.71 3.75 3.75 42.63 42.63

Shift Differential

Wk Comp 1.87 5.39

PERS 26.92 26.92

Unemployment 0.15 0.15

Medicare 1.45 1.45

30.39 33.91

Reclass Contingency

Wk Comp 1.87 4.81 5.39 2.61 6.30 4.11 2.15 2.15 4.11

PERS 26.92 26.92 26.92 26.92 36.92 26.92 26.92 26.92 36.92

Unemployment 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Medicare 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

30.39 33.33 33.91 31.13 44.82 32.63 30.67 30.67 42.63

Welders Pay

Wk Comp 5.39

PERS 26.92

Unemployment 0.15

Medicare 1.45

33.91

Tactical Operations Pay

Wk Comp 6.30 4.11

PERS 36.92 36.92

Unemployment 0.15 0.15

Medicare 1.45 1.45

44.82 42.63

7

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 department and reviewed by the Budget

Division.

Departments will be provided a copy

of the most recent Overhead Rates

worksheet from the Budget Division to apply

to each type of other pay.

If your department has

several different other pay line items, please

submit an additional worksheet showing

salary and benefit costs for other pay as part

of your budget submittal packet.

MAINTENANCE & OPERATIONS (M&O)

Projections for costs that keep

various items in good condition and/or good

working order (maintenance) and various

other ongoing expenses that are required to

keep each department’s operations in

working order can be included in the

maintenance and operations section of the

line item detail worksheet. Refer to the list of

most Commonly Used Expenditure Account

Numbers in the Appendix section for various

existing M & O account numbers.

Projections can be based on prior

year actuals and then adjusted by

removing/reducing costs for items that are no

longer applicable and/or adding costs that

are required because of City Council

priorities, various mandates, increased

workload, etc. Depending on the budget

direction received from the City Manager,

increased costs may need to be absorbed by

each department by decreasing other areas

of the budget so that the bottom line total is

not affected by these increased costs.

CAPITAL OUTLAY

Capital assets are budgeted in the

Capital Outlay section. In order for an asset

to be capitalized it must meet all of the

following criteria:

(1) Must be of a tangible nature

(2) Must have an anticipated useful life

extending beyond one year

(3) Must cost $5,000 or more

Capital Assets that meet these

criteria are coded to account numbers in the

5200 series. For assets that do not meet

these criteria, other expenditure account

numbers such as 5107- Minor Tools &

Equipment, 5194-Minor Office Equipment,

etc. may be more appropriate. Refer to the

list of most Commonly Used Expenditure

Account Numbers in the Appendix section.

INTERNAL SERVICE FUNDS/CHARGES

The City has several Internal Service

(IS) Funds: Building Maintenance,

Warehouse, Fleet Services, Duplicating,

Telecommunications, Mail Services, Office

Automation, Workers' Compensation

Insurance, General Liability Insurance,

Benefits Administration, Property Insurance,

Dental Insurance and Unemployment

Insurance.

Internal Service Funds charge other

departments for goods or services that they

provide (cost–reimbursement basis). These

costs are budgeted for in the Internal Service

Charges section.

8

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 Internal Service Funds

Departments that are within an

internal service fund begin the budget

process early by determining their fund

balance that is available for appropriation.

This calculation is completed by the Budget

Division once the most recent

Comprehensive Annual Financial Report has

been completed by December. A portion of

this available balance may be needed to

balance total sources and uses.

As part of their budget submission,

internal service departments will need to

submit an Internal Service Charges

Calculation Worksheet. This worksheet will

need to show the basis for allocating their

costs across applicable departments and

include the department number for each

budget being charged.

Internal Service Charges

The following are the account

numbers Internal Service departments use to

charge each applicable department:

IS Charge Account

Building Maintenance 5125

Fleet Services 5164

Duplicating 5165

Telecommunications 5172

Mail Services 5175

Office Automation 5178

Gen. Liability/ Property Insurance

5183

Radio Communications1

5174

(1Radio Communications is not an IS fund. It is a

department within the General Fund that allocates out

its costs to various departments that are included

within the IS charge section of each applicable budget.)

Please do not code

transactions (AP invoices, inventory, etc.) to

these IS Charge account numbers. They are

used by the Internal Service Funds only.

Other expenditure account numbers such as

5159-Other Mail, 5166-Other Duplicating,

5169—Other Insurance, 5173-Other

Telephone and 5139-Other Building

Repairs/Maintenance may be more

appropriate. If your department did not

budget for these more appropriate M&O

accounts, please send a request to the

Budget Division to have a zero budget set up

so that your transaction can be posted to the

correct account, not just where there is

budget.

Departments that are being charged

will not need to provide updated IS charge

projections as part of their budget

submission. The Budget Division will update

these projections once all of the Internal

Service Fund budgets have been finalized.

Please submit your budget using

prior year IS charge amounts.

ALLOCATIONS OUT

Some non-internal service funds

allocate out certain costs associated with

providing services to other funds. These

costs that are allocated out are not limited to

employee services. They can also be M&O

costs and internal service charges. The

purpose of allocating out these costs is to

match the funding source to the cost of

providing service. Therefore, it is generally

not necessary to allocate from one

department to another department that are

within the same fund because they share the

same funding source.

Please submit an Allocation

Out Calculation Worksheet as part of your

9

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 budget submittal packet, if applicable. If your

department has allocations out to several

departments, it is requested that this

worksheet be in excel format to help expedite

the review process and to make it easier to

recalculate as needed for changes made

during the budget preparation process. An

explanation of your calculation method and a

justification for charging out to other funds is

required for each allocation out and can be

included either within the allocation

worksheet or on the Executive Summary

(discussed below).

Actual allocation amounts that are

posted to the general ledger/PeopleSoft, with

the exception of Capital Improvement Project

allocations, are based on budgeted amounts.

These amounts are divided by twelve and

processed via a monthly journal entry by the

Budget Division. Capital Improvement

Project allocations are processed differently.

They are generally based on actual time

charged to each project.

“Home Fund/Department Rule” -

Employees that are budgeted to have a

portion of their salary and benefits allocated

out to other departments should still code

their time to their home fund/department on

their timecard. A couple of exceptions to this

rule are as follows:

(1) Occasionally employees are assigned

to work on capital projects or

programs that are outside of their

home fund/department. This time

should also be recorded to their home

fund/department. However, in

addition, the appropriate capital

project or program number should be

added to their timecard.

(2) Overtime can be charged directly to

the fund/department in which the time

was worked by coding the timecard to

the non-home fund/department.

SOURCES AND USES

The Sources and Uses pages, like

the Line Item Detail worksheets, become

available by the end of December or shortly

after the last City Council meeting in

December and will be located at

P:Temp\Finance\Budget\FY XX-XX

Operating Budget. This worksheet will not be

applicable to every department’s budget

submission. Only departments within funds

that have their own funding sources such as

Special Revenue Funds, Debt Service

Funds, Enterprise Funds and Internal

Service Funds will need to submit a Sources

and Uses page. The General Fund Sources

and Uses page is completed by the Budget

Division.

This budget worksheet includes

revenue projections or sources of funds and

expenditure projections or uses of funds.

Total sources and uses of funds must

balance prior to budget submission.

Please remember to round all

amounts to the nearest 5 or 0.

Sources of Funds:

Water Sales $38,500,000

Water Service Charges 15,000,000

Vista Irrigation District (Filtration Charge) 1,300,000

Sale of Electric Power 75,000

Lake Income 880,000

Connection Charges 375,000

Other Revenue 30,000

Interest 132,000

Vista Irrigation District (Capital Project Reimbursement) & SRF Loans 9,635,000

State/Federal Grants 500,000

Use of Capital Project Reserves 3,169,400

TOTAL, Sources $69,596,400

Uses of Funds:

Operating Budget (Water, Canal and Lakes)

Employee Services $10,621,570

Maintenance and Operations 35,278,805

Capital Outlay 306,500

Internal Service Charges 2,083,990

Allocations 6,078,880

TOTAL, Operating Budget 54,369,745

Transfer to Water Capital Project Fund 13,850,000

Bond Principal 1,140,000

SRF Loan Principal 236,655

TOTAL, Uses $69,596,400

CITY OF ESCONDIDO

FY 2017-18 Operating Budget

Enterprise Fund Sources and Uses

WATER

This fund was created to account for the financial activity of the City's water utility. The water utility is financed

and operated in a manner similar to a private enterprise. The costs (expenses, including depreciation) of providing

these services to the general public are financed or recovered primarily through user charges.

10

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 REVENUE PROJECTIONS (SOURCES)

There are various types of sources of

funds such as operating revenue, transfers in

from other funds and use of reserves/fund

balance.

There are also various methods of

projecting revenues depending on the nature

of the revenue source such as a professional

guess, mathematical formula, trend analysis

and modeling (a focus on correlations or how

certain indicators can be used to predict how

certain revenues will behave such as how a

rise in car sales may affect sales tax).

It is recommended that all

revenue projections be budgeted

conservatively so as to error on the side of

under projecting revenues rather than

projecting overly optimistic and not having

enough funds to cover operating expenses.

It is better to budget less revenues than

too much.

Operating revenues projected by

departments will need to include revenue

account numbers, so that the Budget

Division can upload the revenue information

into PeopleSoft once the projections are

approved by City Council.

EXPENDITURE PROJECTIONS (USES)

Each section (Employee Services,

Maintenance and Operations, Capital outlay,

Internal Service Charges and Allocations) of

the line item detail expenditure worksheet

has been discussed in detail above. The

total of these sections is reported in the Uses

of Funds section of the Sources and Uses

page.

It is recommended that all

expenditure projections be budgeted

conservatively so as to error on the side of

slightly over projecting expenditures rather

than underestimating and not having enough

budget approved by City Council to cover

costs. It is better to budget more

expenditures than not enough.

Some other types of uses of funds

include transfers of money to other funds and

principal payments on outstanding

lease/loan debt.

RESERVES/FUND BALANCE

The reserve/fund balance accounts

function like a savings account. The amount

of revenue that exceeds total expenditures is

added to the reserve/fund balance account

of each fund at the end of the fiscal year. If

expenditures are more than revenues, using

reserves/fund balance may be necessary to

cover the gap.

For budgeting purposes, once

projections for revenues and expenditures

have been completed it may become evident

that total sources do not equal total uses. In

order to balance, you must show either an

addition to or use of reserves on the Sources

and Uses page. If a use of

reserves/fund balance is projected, please

ensure that available reserves/fund balance

exists.

11

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 EXECUTIVE SUMMARY

The Executive Summary provides an

overview of your budget submission, which

facilitates the review process by the Budget

Division. It includes preparer information,

department priorities, major budget impacts,

allocation justifications and justifications for

any increase or decrease to projections for

the second year.

Please limit your priorities to

approximately five items and include a brief

description of each. The priorities listed on

the Executive Summary will be published in

the Operating Budget document within each

Department Summary.

Any major increase or decrease to

prior year revenue projections or expense

projections that have an impact on the

bottom line of your budget need to be

explained.

An explanation will also be needed

regarding the calculation method and

justification for allocating costs to other

departments. If your department has

allocations out to several departments, an

explanation can be included on the

Executive Summary and a spreadsheet can

be attached showing the calculations.

Sample Executive Summary:

12

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 DEPARTMENT PICTURES

Additional pictures and graphics have

been added throughout the budget

document to enhance its’ understandability

and usability. As part of the fiscal year 2017-

18 operating budget process, departments

were asked to submit a picture that

represented their department.

Please review this picture each year

and submit a new department picture, if

necessary.

DEPARTMENT ORGANIZATION CHARTS

The department summaries now

include an organization chart by function to

give a clear visual of the function of each

department. Please review this chart each

year and let the Budget Division know if

changes are needed.

DEPARTMENT DESCRIPTIONS

The descriptions of the departments

within the department summaries have been

enhanced to give the reader a better

understanding of the function of each

department, which can also be useful to new

employees. Please review this narrative

each year and provide revisions to the

Budget Division.

MONITORING BUDGETS

Once each budget has been

submitted, reviewed by the Budget Division,

approved by the City Manager, adopted by

City Council and entered into the Financial

System, it is the department’s responsibility

to monitor and stay within their budget

throughout the entire fiscal year by

comparing what has been expended to the

amount of available budget on a routine

basis. There are two reports that can be

used to accomplish this: (1) DEPT

BUDGET/EXPENDITURES SUMMARY and

(2) BUDGETS OVERVIEW.

The path to the DEPT

BUDGET/EXPENDITURES SUMMARY

report in PeopleSoft is: Main Menu -

Escondido Applications - Escondido Reports

& Inquiries - Budget & General Ledger –

Report of Department Expenditures.

In order to compare budget

amounts to actual amounts of the same fiscal

year, please ensure that you enter the

correct budget period when running this

report. For example, if you want to run this

report from 7/1/2014 thru 6/30/2015, you will

need to enter a budget period of 2015. If you

enter a budget period of 2014, then you will

get fiscal year 2013-14 budget amounts and

fiscal year 2014-15 actual amounts.

13

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 This report is divided into the same

categories as the budget document:

Employee Services, M & O, Capital Outlay,

Internal Service and Allocations and

provides the total remaining budget amount

for each account at any given time. This

report can be downloaded into Excel.

The path to the BUDGETS

OVERVIEW report is: Main Menu -

Escondido Applications - Escondido Reports

& Inquiries - Budget & General Ledger -

Budgets Overview.

This report also provides the total remaining

budget for each account at any given time.

In addition, there are hyperlinks that will drill

down to the transaction detail for both budget

and actual amounts. This report can also be

downloaded into Excel.

Please note that these two reports

pull from different areas of PeopleSoft and

therefore may not match for various reasons.

For the most accurate and up to date

financial information please use the

BUDGETS OVERVIEW report.

BUDGET ERRORS IN PEOPLESOFT

PeopleSoft compares the amount of

each transaction to the amount of available

budget as part of the financial transaction

posting process. Where there is not enough

budget to cover the obligation, Finance will

receive a budget error message.

There are two main types of budget

errors that keep transactions from being

posted in PeopleSoft: (1) No budget exists

and (2) No budget available.

No Budget Exists

If there is a transaction that needs to

be posted to an account that was not

originally budgeted for and there is available

budget within the overall category, please e-

mail the Budget Division and request that a

zero budget be set up for this account before

you submit the transaction to Finance for

payment/posting. This will help expedite the

accounts payable process and ensure the

transaction gets paid/posted in a timely

manner. Zero budgets may also need to be

set up for unanticipated revenue amounts.

No Budget Available

Monitoring budgets becomes

especially important during the fourth quarter

of the fiscal year. If departments run out of

available budget, accounts payable,

inventory, etc. transactions will fail the

budget checking process in PeopleSoft. This

means that invoices will not get paid and

other transactions will not be posted to the

general ledger until the budget errors have

been resolved, which could mean a budget

adjustment (see Budget Adjustment Policy

14

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 section below) may need to go to City

Council for approval. Not only does this keep

transactions from being posted, but it slows

down the accounts payable process overall.

The system does not budget check or

verify available budget for each account

individually. Budget checking occurs at the

total category level (i.e. Maintenance and

Operations). If budget is not available in a

certain M & O account like 5101, a

transaction will still post to this account if

there is available budget in total M & O. 5100

and 5200 (capital outlay) categories are

combined for budget checking purposes.

In an effort to avoid this type

of budget checking error, please monitor

your budget closely during the fourth quarter

to ensure you will have enough funds to

cover each obligation applicable to the

current fiscal year.

BUDGET ADJUSTMENTS

POLICY

Council appropriates the resources

necessary to achieve objectives and deliver

services through the adoption of the annual

Operating Budget. Departments are then

given substantial flexibility in managing the

resources allocated to them for these

purposes.

As Departments manage their

resources, there may be unanticipated costs

that arise that cause an individual

account/line item to go over budget or these

costs may exhaust their budget in total. This

may result in the need for a budget

adjustment that will increase the

department’s line item budget or total

budget.

Authority to increase budget amounts

depends on the type of budget adjustment

needed.

Department Heads have the

authority to make adjustments within their

budget as long as the adjustment does not:

(1) Have significant policy impacts

(2) Increase the overall department

budget

(3) Affect Employee Services

(4) Affect Internal Service charges

The City Manager will need to

approve any budget adjustments that:

(1) Transfer budget amounts from

contingency accounts

(2) Affect Employee Services

(3) Affect Internal Service charges

(4) Transfer from department to

department within the same fund

The Council must approve

any budget adjustment that:

(1) Has a significant policy impact

(2) Increases or decreases the

overall department budget (or

overall total budgets of the fund if

reducing one department and

increasing another department

within the same fund)

Council will also need to approve any

increase in the number of benefitted

positions even if the increase in cost for the

new position is offset by a decrease

somewhere else in the Department’s budget.

PREPARATION & ROUTING

If you have a budget adjustment that

requires City Council approval, please make

reference to the budget adjustment in the

subject title of the Green Sheet.

The Budget Adjustment Request

form is located on the Intranet under Forms

and Templates. It should be completed by

the appropriate Staff member. As a rule of

15

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 thumb, if you are requesting an increase to

an expenditure account, you will also need to

provide a funding source for the increase in

costs. Example funding sources are: An

increase in a revenue account, a transfer in

from another fund, a decrease in a different

expenditure account or use of available fund

balance. The deadline to turn

budget adjustments in to the Budget Division

is Monday the week prior to the City Council

meeting date. Please provide the Budget

Division with the original budget adjustment

signed by the Department Head along with a

copy of the signed Staff Report draft.

Once Finance signs off on the budget

adjustment, the Budget Division will provide

a copy of the signed budget adjustment to

both the City Clerk and Attorney offices to be

included in the Council Meeting Agenda.

CARRYOVERS

POLICY

The Budget Carryover policy

provides Departments with the opportunity to

use prior year available budget amounts to

cover obligations incurred in the prior year

that will be expended during the current year.

To be eligible for carryover, requests

must meet the following criteria:

(1) The item must be for $500 or

more

(2) Sufficient funds need to exist in

your prior year department

expenditure summary report

(3) The item must have been

encumbered under a prior year

purchase order, the result of a

prior year budget adjustment or

specifically referenced in the prior

year adopted operating budget

document

(4) The item must not be for an

employee services account

PREPARATION AND APPROVAL

Items that meet these criteria may be

included on the Carryover Request Form that

is located on the Intranet under Forms and

Templates.

Departments will be provided with a

list of open purchase orders by the

Purchasing Division shortly after year end

and will be requested to respond with which

ones need to be rolled over into the new

fiscal year. Budget amounts for items

encumbered under a purchase order are not

automatically carried over. You must include

them on the Carryover Request Form and

the related purchase order must be listed on

the list of rolled purchase orders.

Please provide a brief and clear

explanation for your request. These

explanations will be included on the

Carryover Summary that is submitted for City

Manager’s approval.

Ensure that the Department Head

has signed the request and submit it to the

Budget Division. Carryover requests are

typically due around August/September. An

e-mail will be sent out in August to

Department Heads and Budget Coordinators

reminding them of the eligibility requirements

and the due date.

Departments will be notified of City

Manager approved Carryover requests and

these requests will be posted as a budget

adjustment in PeopleSoft in around

September or October.

16

SE

CTI

ON

CITY OF ESCONDIDO

Operating Budget Manual Workflow

2 REPORTING

Finance updates Council on the

second (Mid-year), third and final (year-end)

quarter (fiscal year) status of the City’s

overall financial position including projected

revenue shortfalls and expenditure

overages. This may result in budget

increases for unanticipated costs or budget

reductions and/or the freezing of vacant

positions.

Additional budgetary reporting is

included in the City’s Comprehensive Annual

Financial Report (CAFR). This report is

prepared by the Finance department,

audited by Independent Auditor’s in

September and due by the end of December.

Within the CAFR, budgetary comparisons of

actual amounts to budgeted amounts are

presented for the General Fund, Streets,

Community Development Block Grant,

Landscape and Assessment Districts,

HOME, other Miscellaneous Special

Revenue Funds, Golf Course Debt Service

and General Obligation Debt Service Funds.

Large variances between actual and

budgeted amounts will need to be explained.

CONCLUSION

Please see the Appendix section for

Commonly Used Expenditure Account

Numbers, a Sample Budget

Submittal/Packet and Budget Glossary.

Most budget worksheets are

available at P:\temp\Finance\Operating

Budget\FY xxxx-xx.

If there is an operating budget topic

that is not discussed within this Budget

Manual that you still have a question about,

please contact the Budget Division at x4063

or e-mail Jodi Coco or Joan Ryan so that the

Budget Manual can be revised appropriately.

17

Section 3

Appendix

18

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Appendix 3

Commonly Used

Expenditure Accounts

Account Description

5001 Regular Full-Time

5002 Contract Funded

5003 Regular Part-time

5004 Temporary Part-time

5020 Overtime

5025 Other Employee Overhead

5030 Flexible Benefits

5101 Office/Operating Supplies

5107 Minor Tools and Equipment

5126 Maintenance of Equipment

5131 Professional Services

5139 Other Building Repairs/Maintenance

5159 Other Mail

5160 Training & Meetings

5161 Mileage Reimbursement

5162 Dues & Subscriptions

5163 Auto Allowance

5166 Other Duplicating

5167 Advertising & Printing

5169 Other Insurance

5170 Utilities

5171 City Water

5173 Other Telephone

5180 Rent

5190 Other Expense

5193 Software

5194 Minor Office Equipment

5209 Other Capital Outlay

5501 Interest Expense

5502 Bond Interest

5505 Bond Expense

5901 Allocations In

5902 Allocations Out

19

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Appendix 3

Sample Budget

Submittal/Packet

20

Fiscal Year 2017-18

Operating Budget Executive Summary

Department Name:

Building

Maintenance Department Number: 450

Preparer: Rich O’Donnell Phone Extension: 4377

Total Budget Submitted: $4,758,370

Major Budget Impacts:

Employee Services:

Employee services will increase this year due to salary and overhead increases. Also, shift

differential and overtime costs have been adjusted.

Total Employee Services increase: $30,675.

Maintenance & Operations:

Professional Services 5131 – Increase of $33,695 in contracts and support services.

Utilities 5170 – Increase of $44,000 due to rate increase.

Other Telephone 5173 – Increase of $1,300. Added new smart phones.

Rent 5180 – Increase of $600 for lift rental.

Total M&O increase: $79,190.

Internal Service Charges:

Increase of $6,315, primarily Fleet.

Proposed program/service level cuts:

None at this time.

Allocation Justifications & Formulas:

Estimated overtime for services provided to Daley Ranch based on prior actual amounts.

Major Budget Impacts 2018-19:

Utility and water rate increases are anticipated. Also, the Department of Industrial Regulations

(DIR) now requires all contractors to pay prevailing wage when performing Public Works projects

over $1,000. We anticipate these costs to continue to rise.

Department Priorities:

1.

Continue to maintain City facilities and structures to reflect a positive City appearance.

2. Provide custodial services for various City facilities and parks.

3. Open and secure City buildings and, maintain and respond to fire and security alarms.

4.

Review plans for future City structures and facilities to establish equipment continuity, ensure

quality standards, and alleviate potential maintenance problems.

21

Sources of Funds:

Charges to Departments:

City Council $51,245

City Manager 68,305

City Attorney 69,640

City Clerk 50,980

City Treasurer 16,390

Finance 86,945

Human Resources/Risk Mgmt. 84,695

Information Systems/Administration 87,010

Recreation 328,605

Library 252,775

Older Adult Services 287,005

Planning/Building/Code Enforcement 158,750

Engineering 252,090

Maintenance/Streets 52,240

Maintenance/Parks 280,000

Radio Communications -

Recycling and Waste Reduction 96,630

Police 1,086,490

Fire 221,395

Center for the Arts 581,370

ASES 58,790

CDBG Administration 10,155

Successor Agency-Housing 5,455

Water/Lakes 386,110

Wastewater/Environmental Programs 145,715

Duplicating 11,690

Fleet Services 111,505

TOTAL, Charges to Departments $4,841,980Interest 1,000 Use of Available Fund Balance 6,445

TOTAL, Sources $4,849,425

Uses of Funds:

Operating BudgetEmployee Services 2,249,070$ Maintenance and Operations 2,383,380 Internal Service Charges 149,820 Allocations (23,900)

TOTAL, Operating Budget 4,758,370

CEC Loan Principal 88,795

SDG&E Loan Principal 2,260

TOTAL, Uses 4,849,425$

CITY OF ESCONDIDO

FY 2017-18 Operating Budget

Internal Service Fund Sources and Uses

BUILDING MAINTENANCE

This fund was created to account for financial activity related to the maintenance and repair of all City-owned

buildings. Funding is provided through charges to other departments, based on square footage, common area

allocation, and specific maintenance projects. A reserve for replacement will be accumulated to replace carpeting, air

conditioning, roofing and other maintenance items.

22

2016-17 2017-18 $$ %

REVISED BUDGET Change Change

650-450 BUILDING MAINTENANCE

5001-650-450 REGULAR FULL-TIME

1 Deputy Director of Public Works/Maintenance 116,885 116,885 0 0.0%

1 Building Maintenance Superintendent 89,955 89,955 0 0.0%

1 Building Maintenance Supervisor 73,655 73,655 0 0.0%

1 Custodial Supervisor 55,035 55,035 0 0.0%

6 Custodian I/II's 226,650 231,185 4,535 2.0%

1 Facilities Project Coordinator 68,580 72,020 3,440 5.0%

1 HVAC Technician 66,415 67,745 1,330 2.0%

2 Lead Maintenance Technicians 117,405 119,750 2,345 2.0%

1 Management Analyst II 73,990 73,990 0 0.0%

Shift Differential 3,120 11,785 8,665 277.7%

Bilingual Pay 7,800 7,800 0 0.0%

Holiday Pay 20,890 20,890 0 0.0%

920,380 940,695 20,315 2.2%

5003-650-450 REGULAR PART-TIME

1 Custodian I (.75) 26,100 24,335 -1,765 -6.8%

5004-650-450 TEMPORARY PART-TIME

Temporary Part-Time 433,815 435,905 2,090 0.5%

Bilingual Pay 2,700 2,700 0 0.0%

436,515 438,605 2,090 0.5%

5020-650-450 OVERTIME

Overtime 63,550 100,000 36,450 57.4%

Standby Pay 28,300 27,300 -1,000 -3.5%

91,850 127,300 35,450 38.6%

EMPLOYEE OVERHEAD:

43,855 45,815 1,960 4.5%

373,840 125,875 -247,965 -66.3%

0 204,350

182,900 193,705 10,805 5.9%

123,870 129,305 5,435 4.4%

5030-650-450 FLEXIBLE BENEFITS 19,085 19,085 0 0.0%

TOTAL, EMPLOYEE SERVICES 2,218,395 2,249,070 30,675 1.4%

5101-650-450 OFFICE/OPERATING SUPPLIES

Boot Allowance 3,225 3,225 0 0.0%

Miscellaneous Supplies and Code Books 500 500 0 0.0%

Safety Glasses 2,000 2,000 0 0.0%

Small Tools 1,275 1,275 0 0.0%

5028-650-450 WORKERS' COMPENSATION

CITY OF ESCONDIDO

FY 2017-18 Operating Budget

Line Item Detail

5025-650-450 OTHER EMPLOYEE OVERHEAD

5026-650-450 PERS-NORMAL COST

5027-650-450 MEDICAL

5029-650-450 PERS-UNFUNDED LIABILITY

23

2016-17 2017-18 $$ %

REVISED BUDGET Change Change

650-450 BUILDING MAINTENANCE

CITY OF ESCONDIDO

FY 2017-18 Operating Budget

Line Item Detail

7,000 7,000 0 0.0%

5102-650-450 CUSTODIAL SUPPLIES 100,000 103,000 3,000 3.0%

5126-650-450 MAINTENANCE OF EQUIPMENT 3,000 3,000 0 0.0%

5131-650-450 PROFESSIONAL SERVICES/CONTRACTS

5 Year Elevator Load Test 2,500 0 -2,500 -100.0%

Appliance Repair 10,000 15,000 5,000 50.0%

Automatic Doors/Roll Up Doors, Service and Parts 88,000 88,000 0 0.0%

Awning Maintenance and Repair 1,500 1,500 0 0.0%

Backflow Device Inspections 4,500 4,500 0 0.0%

Carpentry and Miscellaneous Repairs 25,000 25,000 0 0.0%

City Hall/Maple Street Plaza/Mercado Fountain Maintenance 30,000 35,500 5,500 18.3%

Citywide HVAC Filter, Belts and Lube (60% CCAE) 66,000 69,000 3,000 4.5%

Collapsible Wall Maintenance (Conference Center Salons) 5,400 6,000 600 11.1%

Custodial Support (Records, DEA Bldg, Oak Hill Rec Bldg) 64,500 73,900 9,400 14.6%

Drain Cleanout/Plumbing Repairs 45,000 45,000 0 0.0%

Electrical Repairs 70,000 70,000 0 0.0%

Electronic Marquee Maintenance 2,000 2,000 0 0.0%

Elevator Maintenance and Repairs 49,000 51,500 2,500 5.1%

Elevator State Inspection Fee 3,800 3,800 0 0.0%

Energy Management System 70,500 60,000 -10,500 -14.9%

Fall Protection Inspection and Certification (CCAE) 2,600 2,900 300 11.5%

Fire Alarm Inspections, Monitoring and Repairs 60,000 77,000 17,000 28.3%

Fire Extinguishers 9,000 9,000 0 0.0%

Floor Repair 5,000 5,000 0 0.0%

Generator and Chiller Permits 26,700 19,000 -7,700 -28.8%

Generator Maintenance 60,000 67,000 7,000 11.7%

Glass Repair 7,500 2,000 -5,500 -73.3%

Gym Floor/Dance Floor Refinishing 15,000 10,000 -5,000 -33.3%

HVAC Repairs 50,000 57,000 7,000 14.0%

HVAC Service Contract (CCAE and City Hall) 50,000 55,000 5,000 10.0%

Hazardous Waste Disposal 4,000 4,000 0 0.0%

Jail Door Maintenance 8,000 8,300 300 3.8%

Lock Repair 2,400 2,400 0 0.0%

Osmosis Equipment Maintenance (Fire Stations 1-7) 7,000 7,000 0 0.0%

Pest Control 18,000 18,000 0 0.0%

Pneumatic Control Maintenance (City Hall and CCAE) 30,000 30,000 0 0.0%

Pressure Washing 9,000 13,850 4,850 53.9%

Rolling Storage File Maintenance (Police/Fire) 7,500 7,500 0 0.0%

Roof Repair 5,000 5,000 0 0.0%

Security System Monitoring and Repairs 27,700 25,000 -2,700 -9.7%

Soft Water Service for Humidifiers (CCAE Museum) 3,300 4,000 700 21.2%

Speed Drive Service (CCAE) 10,000 5,000 -5,000 -50.0%

Stage Lift Maintenance (CCAE) 4,300 4,500 200 4.7%

UPS Maintenance (Police/Fire) 12,800 13,350 550 4.3%

Uniforms 7,000 5,000 -2,000 -28.6%

Water Treatment 12,400 9,800 -2,600 -21.0%

Window Cleaning 11,000 14,550 3,550 32.3%

Stage Rigging Inspection 13,000 13,000 0 0.0%

Painting 10,000 10,000 0 0.0%

Daley Ranch Water System Maintenance & Testing 0 2,500 2,500 #DIV/0!

Daley Ranch Well Permit 0 2,245 2,245 #DIV/0!

24

2016-17 2017-18 $$ %

REVISED BUDGET Change Change

650-450 BUILDING MAINTENANCE

CITY OF ESCONDIDO

FY 2017-18 Operating Budget

Line Item Detail

1,025,900 1,059,595 33,695 3.3%

5139-650-450 OTHER BUILDING REPAIRS/MAINTENANCE

Building Maintenance/Repairs for City Facilities 192,405 192,405 0 0.0%

5162-650-450 DUES AND SUBSCRIPTIONS

Professional Publications 250 250 0 0.0%

5170-650-450 UTILITIES

Gas and Electric 310,000 339,000 29,000 9.4%

Safety Facility Utilities 610,000 625,000 15,000 2.5%

920,000 964,000 44,000 4.8%

5171-650-450 WATER

Water Usage 23,000 23,000 0 0.0%

5173-650-450 OTHER TELEPHONE

Cellular Phone Service 9,700 11,000 1,300 13.4%

5180-650-450 RENT

Pager Rental 400 400 0 0.0%

Other Rent 1,000 1,600 600 60.0%

1,400 2,000 600 42.9%

5501-650-450 INTEREST

CEC Loan Interest 21,535 18,130 -3,405 -15.8%

TOTAL, M & O 2,304,190 2,383,380 79,190 3.4%

5164-650-450 FLEET SERVICES 62,975 73,300 10,325 16.4%

5165-650-450 DUPLICATING 135 180 45 33.3%

5172-650-450 TELECOMMUNICATIONS 1,705 1,205 -500 -29.3%

5174-650-450 RADIO COMMUNICATIONS 3,070 8,665 5,595 182.2%

5178-650-450 OFFICE AUTOMATION 14,175 16,290 2,115 14.9%

5183-650-450 INSURANCE

General Liability Insurance 60,475 49,320 -11,155 -18.4%

Property Insurance 970 860 -110 -11.3%

61,445 50,180 -11,265 -18.3%

TOTAL, INTERNAL SERVICE CHARGES 143,505 149,820 6,315 4.4%

25

2016-17 2017-18 $$ %

REVISED BUDGET Change Change

650-450 BUILDING MAINTENANCE

CITY OF ESCONDIDO

FY 2017-18 Operating Budget

Line Item Detail

SUBTOTAL, BUILDING MAINTENANCE 4,666,090 4,782,270 116,180 2.5%

5901-650-450 ALLOCATED IN

Engineering 21,815 0 -21,815 -100.0%

Streets 0 12,100

21,815 12,100

5902-650-450 ALLOCATED OUT

City Manager - Daley Ranch House Rental (52006) (8,290) (36,000) -27,710 334.3%

TOTAL, BUILDING MAINTENANCE 4,679,615 4,758,370 78,755 1.7%

26

27

28

Building Maintenance Fund

The Building Maintenance Internal Service Fund was created to account for transactions related

to the maintenance and repair of City facilities. Costs to other departments are billed through

charges to each affected department for services received. Funds are collected on an annual

basis through each affected departments operating budget and deposited into the Building

Maintenance Fund. This fund may also accumulate reserves that can be used for major repairs,

unanticipated expenses, and planned capital projects.

Facility Maintenance

Facility maintenance performs a variety of services, such as, preventative maintenance, minor

work orders, small remodels, capital project management, and energy conservation for all City

departments.

Custodial Maintenance

Custodial maintenance performs cleaning and room setups at a number of the City’s major

facilities. They are also typically responsible for opening and securing their assigned building.

Additionally, the City uses some contract services to assist in the custodial maintenance of its

facilities.

Capital Projects

Building Maintenance manages a number of capital projects each year, in addition to the day to

day activities. These projects usually go out to public bid and are awarded to various

contractors. Projects can range from a few thousand dollars, to hundreds of thousands of

dollars.

Who Knew?

The City custodial staff maintains over 336,000 square feet of building space.

Facility repair staff completed 1,146 work orders in the 2016 fiscal year.

Building Maintenance completed over $950,000 in Capital Projects in the 2016 fiscal

year.

Future Challenges

With electricity costs increasing at a high rate every year, we continue to explore and

implement feasible ways to conserve energy at City facilities. Many steps have been taken in

this regard, and we will continue to investigate other possibilities as technology advances.

Aging facilities are another challenge we face. As they age, the demand increases for

maintenance and replacement of roofs, HVAC equipment, flooring and other major building

components.

29

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Appendix 3

FREQUENTLY ASKED QUESTIONS

Q: Our department budget has been submitted, reviewed by the Finance Department and approved by the City Manager. An unanticipated cost has been identified. Can our budget be revised?

A: Yes, budgets can be revised up until the drop dead date of May 15th. Significant changes received after this date will not be included in the printed preliminary budget document provided to City Council, but can be discussed at the June budget hearing and proposed as an amendment to be included in the final budget document. Immaterial changes requested late in the budget process are discouraged in order to timely distribution of the preliminary budget document to City Council.

Q: When do the prior year budget worksheets become available and where are they located?

A: The two-year line item detail and sources and uses worksheets become available shortly after the last City Council meeting in December. This is because the revised column includes budget adjustments thru the month of December. They are located at P:\temp\Finance\Operating Budget\FY xxxx-xx.

Q: Our department is considering doing a reorganization of positions. Whose responsibility is it to project the potential cost/savings of the various reorg scenarios to be considered?

A: Either the department can cost these scenarios to be reviewed by the budget division or the budget division can provide the costing for the department to review. These types of changes will need to be reviewed by the Human Resources department and approved by the City Manager prior to being included in the budget document.

Q: What is included in the Projected Salary amount on the salary and benefits worksheet?

A: This amount includes current salary as of January plus any negotiated salary increases and step increases that are projected to occur during the next fiscal year.

Q: Our department budget includes internal service charges and allocations in from other departments. Where do these amounts come from?

A: Internal Service Funds (ISFs) charge other departments for goods or services that they provide. Similarly, some non-ISF departments allocate out certain costs associated with providing service to other funds. These amounts are calculated by the charging department and reviewed by the Budget Division. ISF charges are preliminarily approved by the City Manager around the end of January and are revised as changes occur throughout the budget process. Departments being charged do not need to provide updated ISF Allocation In amounts prior to submitting their budget. The Budget Division will keep these amounts updated until finalized.

30

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Appendix 3

FREQUENTLY ASKED QUESTIONS (Continued)

Q: Our department incurred an expense that should be coded to an account that was not budgeted for. Can this expense be coded to a different expense account that has available budget?

A: No. All expenses should be coded to the appropriate account. In order for this transaction to pass the budget checking process in PeopleSoft, a zero budget will need to be requested to be set up by the Budget Division. Coding expenses to the proper account facilities proper budgeting in future years when using trend analysis during the projection process.

Q: Do all budget adjustment requests require City Council approval?

A: No. Only budget adjustments that increase the overall department budget will need City Council approval.

31

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Appendix 3

BUDGET GLOSSARY

Account Code - The classification of an expenditure, according to the type of items purchased or services obtained. For example, the cost of placing an advertisement in the paper is classified under the account code entitled "Advertising & Printing."

Allocation - An accounting procedure in which the cost of a service performed by one department is charged to the department receiving the service.

Appropriation - The legal authorization by a City Council to make expenditures and incur obligations for specific purposes. An appropriation is usually limited in the amount and the time in which it may be expended.

Assessed Valuation - A dollar value placed on real estate or other property as a basis for levying property taxes.

Budget - A financial plan that identifies total sources of revenues and specifies how they may be expended during a specific period of time.

Capital Improvement Program - An annual expenditure plan that outlines the funding for and timing of the construction of physical assets, such as parks, streets, water/sewer lines, and recreational facilities, over a fixed period of years.

Capital Outlay - A grouping of object codes that is based on durable items, such as office equipment and furnishings, with a value of $5,000 or more.

Carryover - The use of prior year funds to cover obligations incurred in the prior year, but not disbursed until the current year.

Debt Service - The payment of interest and principal on borrowed funds, such as bonds.

Employee Services - A grouping of object codes based on the different forms of employee compensation, such as salaries of permanent and temporary staff, overtime pay, and benefits.

Encumbrance - An obligation, in the form of an order or contract, that will become payable when goods are delivered or services rendered.

Expenditure - An amount of money disbursed for a budgeted item which results in a decrease in net financial resources.

Fee - A charge levied for providing a service or permitting an activity.

Fiscal Year - The twelve-month period of time on which the budget is based. The City's fiscal year is July 1 through June 30.

Fund - A fiscal and accounting entity with a self-balancing set of accounts in which all resources and related liabilities and equities are recorded and segregated to carry out a specific operation or purpose.

Grant - A contribution by one governmental unit to another unit, usually in support of a specific facility or function

32

SEC

TIO

N

CITY OF ESCONDIDO Operating Budget Manual

Appendix 3

BUDGET GLOSSARY (Continued)

Line Item - A detailed description of a budgeted expenditure within an object code.

Maintenance & Operations (M&O) - A grouping of object codes based on nondurable supplies and services. Office supplies, building maintenance, printing, travel, rent, professional services and contracts, and telephone service are included in this category.

Revenue - Income generated by taxes, bonds, interest income, land rental, fines, fees, licenses, permits, and grants.

Taxes - Mandatory charges levied by a governmental unit for the purpose of financing services performed

for the common benefit.

33