FINANCIAL POLICIES
User fees and charges shall be established at a level that fully covers both direct and indirect costs of providing the service, wherever possible, in accordance with the Cost Recovery policies and Master Fee Schedule established by the City Council. Fees shall be reviewed and updated on an ongoing basis. Development process costs and related administrative expenses shall be fully offset by development fees, wherever possible. I. Cost Allocation for Administrative and Support Functions The City shall maintain a Cost Allocation Plan (CAP) to appropriately charge special funds for central administrative and support functions costs such as executive management, legal services, personnel, equipment and facility maintenance. CAP shall be updated at least every three years. J. Grants and Federal Funds The City shall aggressively pursue all grant opportunities; however, before accepting grants, the City will consider the current and future implications of both accepting and rejecting the monies, including: The amount of matching funds required; In-kind services to be provided; Requirements for reporting, earmarking and level of effort requirements; The related operating expenses; and Length of grant and consequential disposition of service (i.e. is the City obligated to continue the services after the grant has ended). K. Risk Management The City manages risk through a combination of purchased insurance and direct payment (self-insurance). The City self-insures workers’ compensation claims and general/auto liability claims up to a certain amount ($300,000 and $350,000 per claim, respectively, as of 2019). Excess workers’ compensation and general/auto liability insurance coverage shall be purchased. (In 2019, purchased insurance coverage of up to $3,000,000 per claim is provided through a risk- sharing pool, the California Insurance Pool Authority (CIPA). CIPA also purchases excess coverage up to $43,000,000 for general/auto liability and $53,000,000 for workers’ compensation.) Claims against the City are filed with the City Clerk’s office, pursuant to Government Code 915. The City may outsource workers’ compensation and general/auto liability claims administration services by contracting with a third-party claims administrator. (In 2019, claims administration services are provided by AdminSure (workers’ compensation) and George Hills Company (general/auto liability) through CIPA.) Property, earthquake/flood, pollution liability and cyber liability exposures are insured through the purchase of traditional insurance policies.
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FY 2019-21 Proposed Budget
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