Western City November 2013 by Western City Magazine

NOVEMBER 2013 |

The Monthly Magazine of the League of California Cities速

FINANCIAL RESOURCES TO SUPPORT

ENERGY

EFFICIENCY p.8 New Elements in Governmental Financial Statements p.10 Walnut Creek Takes a Graphic Approach to Its Budget p.11

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CONTENTS 2 Calendar of League Events 3 Executive Director’s Message Can Art and Emotion Inspire Effective Leadership?

By Chris McKenzie

Artist and speaker Erik Wahl’s performance at the League’s recent annual conference inspired city officials to think creatively about personal skills that can be put to work in serving the public.

City Forum

Property Assessed Clean Energy Financing for Commercial Building Upgrades

By James Hamill

Efforts to achieve greater energy efficiency in commercial and industrial buildings are often hampered by substantial upfront costs. To help businesses overcome these cost barriers, California cities and counties can take advantage of an innovative solution.

News from the Institute for Local Government

Resources to Help Promote Public Trust And Confidence in Local Government The competency of both local officials and staff provides a basis for establishing public trust and confidence. Elements of ethics, public input and transparency also play a key role.

Sustainable Cities

By Yvonne Hunter

Financial Resources to Support Energy Efficiency California’s energy utilities and state agencies offer rebates, zerointerest loans, grants and other types of financing incentives to cities, residents and businesses.

10 What Local Officials

Need to Know About New Elements in GASB Financial Statements

By Gary M. Caporicci Two new elements required for government financial statements may seem complicated at first glance, but will improve the accuracy of reporting by including future commitments.

11 California Cities Helen Putnam Award for Excellence

alnut Creek Takes W A Graphic Approach To Its Budget

he city did something dramatically T different to capture the community’s attention about a looming deficit.

14 Job Opportunities 19 Professional Services Directory

Cover Photo: Denemmanuel/ Shutterstock.com

President José Cisneros Treasurer San Francisco

1400 K Street Sacramento, CA 95814 (916) 658-8200 Fax (916) 658-8240

First Vice President Tony Ferrara Mayor Arroyo Grande

Second Vice President Katherine Miller Council Member Stockton

Immediate Past President Bill Bogaard Mayor Pasadena

Executive Director Chris McKenzie

leaguevents

Magazine Staff Editor in Chief Jude Hudson, Hudson + Associates (916) 658-8234 email: editor@westerncity.com

NOVEMBER 4&6

Managing Editor Eva Spiegel (916) 658-8228 email: espiegel@cacities.org

Legislative Briefings, Redding and Webinar Learn about the latest legislative developments affecting cities in this interactive program. This information will be provided on-site in Redding on Nov. 4 and online on Nov. 6.

Advertising Sales Manager Pam Maxwell-Blodgett (916) 658-8256 email: maxwellp@cacities.org

7– 8

Administrative Assistant Anita Lopez (916) 658-8223 email: alopez@cacities.org

Board of Directors’ Meeting, Newport Beach The League board reviews, discusses and takes action on a variety of issues affecting cities, including legislation, legal advocacy, education and training, and more.

Contributors Dan Carrigg Norman Coppinger JoAnne Speers Randi Kay Stephens Perry Stottlemeyer

4–5

DECEMBER Municipal Finance Institute, San Diego This conference provides essential information for city officials and staff involved in fiscal planning for municipalities.

Associate Editors Jim Carnes Carol Malinowski Carolyn Walker

4–6

City Clerks’ New Law and Elections Seminar, San Diego The seminar covers laws affecting elections as well as many aspects of the clerk’s responsibilities.

Design Taber Creative Group Advertising Design ImagePoint Design

JANUARY 2014

For photo credits, see page 15. Western City (ISSN 0279-5337) is published monthly by the League of California Cities, 1400 K St., Sacramento, CA 95814. Subscriptions: $39.00/1 year; $63.00/2 years; student: $26.50; foreign: $52.00; single copies: $4.00, including sales tax. Entered as periodical mail January 30, 1930, at the Post Office, Los Angeles, CA 90013, under the Act of April 13, 1879. Periodical postage paid at Sacramento, Calif.

NT RI

New Mayors and Council Members’ Academy, Sacramento This vitally important training prepares newly elected officials for the demands of office and introduces them to the legal constraints on city councils.

23 – 24

Policy Committee Meetings, Sacramento The League’s policy committees review issues of interest to cities statewide and make recommendations to the League board of directors.

Legal Advocacy Committee, Sacramento The committee reviews and recommends friend-of-the-court efforts on cases of significant statewide interest to California cities.

ED US IN G

Postmaster: Send address changes to Western City, 1400 K Street, Sacramento, CA 95814. Western City Trademark Reg. U.S. Pat. Off. ©2013 League of California Cities. All rights reserved. Material may not be reprinted without written permission. This issue is Volume LXXXIX, No. 11.

22 – 24

Event and registration information is available at www.cacities.org/events. W

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Executive Director’s Message by Chris McKenzie

Can Art and Emotion Inspire

Effective Leadership? As I write this column, the League’s 2013 Annual Conference & Expo has just concluded. It provided a great experience for me and, it seems, for everyone who attended. Over and over again, city officials reported that the General Sessions, concurrent workshops and City Talks really hit the mark! Even the special sessions offered by our League Partners in the Exposition Hall were wildly popular. In short, I heard that the program and the fellowship were spot-on. These are sweet words to the League staff, including me. After the conference I asked how many of our own staff were able to enjoy Erik Wahl’s deeply moving opening keynote address on the role of creativity and emotion in being an effective leader. Very few of them got to see it because they were busy with the work of running the conference. It was a good reminder to me that when we have eye-opening experiences, we need to share them with our own staff as well. continued

Statue of Liberty by Erik Wahl

Western City, November 2013

Can Art and Emotion Inspire Effective Leadership?, continued

The Makings of an Uncomfortable Audience I intentionally went to the back of the auditorium at the beginning of Wahl’s presentation to pay close attention to the audience’s reaction. If you weren’t there, imagine a man with blond shoulder-length hair, dressed in black, talking rapidly

about his childhood love of drawing, how he unfortunately began thinking as he grew older that he had no talent and really could not draw, and his own personal journey back to it 30 years later. When he described himself as a “graffiti artist,” you had the makings of an uncomfortable audience of city officials.

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I noticed a small group of individuals leave the auditorium. (My staff later told me that one of them came to the registration desk to complain about the speaker and his use of “graffiti” when it is the plague of many cities.) Then the music, video images and the graffiti art began. What emerged in just a few minutes of furious brush strokes was an incredible painting of President Abraham Lincoln. The faster Wahl talked and painted, the more he engaged the audience. After he completed the first painting, he threw a stuffed animal into the audience, and then ran down to interview the official who caught it: a city manager. Wahl told the city manager he wanted him to come onstage and help him with his next painting, but that the city manager could designate one of his friends to do it in his place. When Wahl asked if he would do it himself or designate someone, the manager said, “I wouldn’t do that to anyone, so I’ll do it myself.” Wahl took him onstage and gave him an envelope that contained a note he asked the manager to read to the audience. The note said, “The painting of President Lincoln is yours to keep.”

Confronting Fear and Taking Risks

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The crowd roared its approval, and the city manager thanked Wahl, who commented that in 95 percent of his corporate audiences the fear of drawing makes his “volunteers” designate someone else. He was pleasantly surprised by the city manager’s fearlessness. He didn’t know (as we do) that city officials are by nature among the most fearless people in the world — they confront difficult crowds and situations all the time. Wahl proceeded to do two more paintings, accompanied by music and videos of emotion-producing scenes, like military veterans returning home and surprising their spouses and children, as well as other touching scenes. At times he had the audience in tears. His final portrait was executed upside down. He turned it right side up when he finished so the crowd could see it was Albert Einstein.

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Wahl’s story is really not all that different from many of ours, except he looked deep inside himself to rediscover his love of drawing and painting and turn it into more than a pastime. In the process he discovered the importance of confronting one’s fears, taking what may seem like extreme risks and ending up with a career that is both fulfilling and challenging. The audience gave Wahl a standing ovation at the conclusion of his performance. He later signed nearly 150 copies of his book in the Expo Hall. Not surprisingly, his book is titled UN-Think: Rediscover Your Creative Genius.

Catalysts for Change As I spoke to city officials over the next few days, many of them spoke with enthusiasm about Wahl’s performance and how it inspired them to think about the skills they may have that can be put

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to work in serving the public, and how it caused them to adopt a broader vision of what it meant to be a “graffiti artist.” Wahl also spoke effectively about the fact that change at all levels of government, even needed change, can sometimes happen only if members of the public are asked respectfully to confront their own fear of change and they are shown possibilities that evoke their own aspirations and vision for their communities. Listening to Wahl, I recalled how my father — an artist who had become an advertising executive — would talk about how he had learned to use effective artistic presentation to evoke positive emotions in potential customers for his clients’ products. A good ad, he often said, connected its viewer with memories that carried positive emotions. The best, he added, were elegantly simple.

Ultimately, if Erik Wahl did nothing more than awaken in his audience an appreciation for their own latent artistic and leadership skills, it was an outstanding experience. For others, he may even have helped clarify the solution to a perplexing problem at home that had been eluding resolution. Either way, it was a presentation worth experiencing — intellectually and emotionally. ■

The faster Wahl talked and painted, the more he engaged the

audience.

Western City, November 2013

(as well as the energy savings) can be passed along to tenants; • It allows owners to finance improvements while incurring no additional debt on a property; and • Generally, PACE allows projects to be cash-flow positive from the outset because the financing offered is relatively low cost and payable over an extended period of time (up to 20 years). Thus, the energy savings can more than offset the property tax increase.

Property Assessed

Clean Energy Financing for Commercial Building Upgrades

by James Hamill In the United States, commercial and industrial buildings account for more than 70 percent of all energy consumption. Efforts to achieve greater energy efficiency in commercial and industrial buildings are often hampered by substantial upfront costs associated with improving energy efficiency and water conservation as well as implementing renewable energy measures. To help the business community overcome upfront cost barriers, California cities and counties can take advantage of an innovative solution available through CaliforniaFIRST, a Property Assessed Clean Energy (PACE) financing program offered by California Communities.

land-secured financing district. After a local government or joint powers authority establishes the district, the property owner voluntarily agrees to place a lien on the commercial property undergoing efficiency upgrades. A bond, secured by the property, is then issued to finance the project. The property owner repays the bond over the course of 10 to 20 years via a special line item on his or her property taxes. Property owners may use the program to finance solar photovoltaic systems; heating, ventilation and air conditioning (HVAC) systems; cool roofs; lighting; insulation; retrocommissioning and water-efficiency upgrades.

Originally created as a tool to help homeowners finance solar and energy-efficiency improvements, the residential PACE program’s implementation has been delayed until Federal Housing Finance Agency regulatory issues are resolved. However, a growing number of communities nationwide are using PACE as a way to help businesses finance commercial building energy-efficiency upgrades.

Key Benefits to Property Owners

How PACE Works

• PACE assessments qualify as an operating expense under most triple-net lease agreements. This means payments

The PACE program uses a traditional local government financing tool, the

PACE financing offers a number of important advantages that appeal to commercial property owners: • Because it is a property-tax assessment, the repayment obligation for the PACE assessment remains with the property if it is sold;

Creating Jobs and Reducing Energy Use In addition to helping achieve the goal of reduced energy consumption, PACE is gaining popularity due to its significant potential to create local jobs. A 2011 study conducted by the Portland-based econometrics firm ECONorthwest shows that $1 million in spending on PACE projects would create 60 jobs, generate $10 million in gross economic output and generate $1 million in combined federal, state and local tax revenue. According to a landmark report by Johnson Controls, cost-effective measures can reduce energy usage in commercial buildings by more than 20 percent.

CaliforniaFIRST: Nation’s Largest PACE Program The CaliforniaFIRST commercial PACE program, which operates under the auspices of the California Statewide Communities Development Authority (CSCDA), is currently active in 14 counties and 127 cities throughout the state. Three additional counties recently voted to join the program. Local government members of CSCDA can participate in the PACE program through a simple majority vote of the city council or county board of supervisors. For more information, visit www.californiafirst.org. ■

James Hamill is a program manager for California Communities, a joint powers authority sponsored by the League and California State Association of Counties. He can be reached at jhamill@cacommunities.org. For more about California Communities, visit www.cacommunities.org.

League of California Cities

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News from the Institute for Local Government RESOURCES TO HELP PROMOTE PUBLIC TRUST AND CONFIDENCE IN LOCAL GOVERNMENT Promoting public trust and confidence in local agency decisionmaking is a key focus of the Institute for Local Government (ILG). Various factors influence such trust and confidence. The competency of both local officials and staff provides a basis for establishing public trust and confidence. But while competency is necessary, it is not sufficient to earn the public’s trust. The additional components needed to build public trust and confidence involve the intersection of three overlapping elements: transparency, ethics and public input.

ETHICS Ethics plays a role in the community’s trust and confidence by assuring residents that public servants’ actions are motivated by the public’s interests — as opposed to public servants’ personal interests. The ILG website’s ethics section offers a wealth of information about ethics principles and ethics laws that apply to public service. These materials include an archive of “Everyday Ethics for Local Officials” articles that examine issues that can arise in public service (at www.ca-ilg.org/everydayethics). The Institute also offers a number of plain-language explanations of California ethics laws, including the 2013 update of Understanding the Basics of Public Service Ethics Laws. This free e-book covers: • Personal financial gains laws; • Perk issues, including compensation, use of public resources and gift laws; • Transparency laws; and

TRANSPARENCY ETHICS

PUBLIC INPUT

TRANSPARENCY Transparency applies to both local agency information and local agency processes. Informational transparency includes: • Making it easy for community members to understand what a local agency does and who to contact when issues arise; and • Providing information about local agency regulations and activities, as well as financial information. Process transparency helps community members understand how local agency decision-making processes work and how they can participate in those processes. Information about core aspects of local agency decision-making is available through the ILG website as part of its Local Government 101 program (www.ca-ilg.org/local-government-101). ILG welcomes local agencies to link to its website. To help local agencies that are considering which types of information to include on their website as part of their transparencyrelated efforts, ILG has compiled a useful checklist, available at www.ca-ilg.org/WebsiteTransparency. www.westerncity.com

• Fair process and merit-based decision-making. This free resource is available due to the generous financial support of ILG supporters Aleshire & Wynder, Best Best & Krieger, Burke Williams & Sorensen, Hanson Bridgett, Kronick Moskovitz Tiedemann & Girard, Liebert Cassidy Whitmore, Richards Watson & Gershon, and Renne Sloan Holtzman Sakai.

PUBLIC INPUT How does the thoughtful public servant determine what the public’s interest is in any given situation? One way, of course, is to ask. A key goal of ILG’s public engagement efforts is to help local agency officials and staff understand the options available for seeking public involvement and input into local agency decisionmaking processes. The ILG website offers resources on core concepts related to successful public engagement (www.ca-ilg.org/publicengagement), as well as strategies for broadening public participation beyond the “usual” small number of people who typically take part in agency decision-making processes (www. ca-ilg.org/ broadening-participation). Public engagement strategies and options for specific situations — for example, engaging the public in the budget process (www.ca-ilg.org/engaging-public-budgeting) — are also available on the ILG website. ILG’s work in the public engagement area is based on the theory that providing local decision-makers with the full range of perspectives on an issue enables them to make informed and supported decisions that are in the community’s best interests — and promotes public trust and confidence. ■ Western City, November 2013

FINANCIAL RESOURCES TO SUPPORT

ENERGY EFFICIENCY by Yvonne Hunter

he old saying “There is no such thing as a free lunch” is mostly true — except when it comes to investing in energy efficiency. While the “lunch” may not be entirely free, it’s certainly available at a lower cost through rebates, zero-interest loans, grants and other types of financing incentives offered by California’s energy utilities and state agencies. These incentives cover energy-efficiency projects in local agency buildings, and similar incentives are available for business and residential customers as well. As a service to local officials, Western City periodically provides a summary of key

energy-efficiency financing programs. Because these programs change over time, local officials may wish to review the available options. Additional information — including links to utility, state agency and other financing programs — is provided in the online version of this article.

Utility Incentive Programs California’s investor-owned and municipal utilities offer a variety of incentives to help finance energy efficiency in local agency buildings and operations. Municipal utility programs vary by individual utility. Investor-owned utility incentives are regulated by the California Public Utilities Commission.

The investor-owned utilities, Pacific Gas and Electric Company, San Diego Gas and Electric Company, Southern California Edison and Southern California Gas Company, offer an array of energyefficiency incentive programs. These range from rebates for purchasing qualified energy-efficient equipment to lowor zero-interest loans. The rebates help reduce the upfront cost of the equipment, thus shortening the payback period. Energy-Efficiency Incentives for Buildings. Rebates are available for energy-efficient retrofitting of heating, ventilation and air conditioning (HVAC) equipment, lights, water and wastewater systems, motors

Yvonne Hunter is co-director of the Sustainability program for the Institute for Local Government (www.ca-ilg.org) and can be reached at yhunter@ca-ilg.org. For more about the Sustainability program, visit www.ca-ilg.org/sustainable-communities.

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and pumps, streetlights, furnaces, boilers, refrigeration and cooking systems. The amount of the rebate depends on the retrofit project and is usually calculated by kilowatt hours or therms saved, up to a maximum level. Eligibility generally is based on predetermined criteria, so it is a good idea to check the requirements before beginning a project. Checking with the account manager of the agency’s utility when evaluating a project is also a good approach for medium-size or larger projects.

and natural gas-powered equipment. For example, utility incentive programs are available for the purchase of more efficient pumps, motors and variablefrequency drives, as well as boilers for wastewater-system digesters. Other Utility Incentive and Assistance Programs. In addition to incentives for retrofitting existing equipment and appliances, utilities offer a variety of other financial incentive programs.

• Financial incentives and technical energy and design assistance are available as part of new, nonresidential construction projects (sometimes referred to as savings by design). • Utility demand response programs offer financial incentives for temporarily reducing power usage in office buildings upon request by continued on page 16

Since lighting may account for up to 39 percent of a building’s energy use, utility programs can offer solutions and incentives to upgrade to efficient lamps and fixtures, including sensors and controls, dimmable ballasts and lightemitting diodes (LEDs), a newer energyefficient lighting technology. Similarly, in an average office, the HVAC system may account for 28 percent of the energy use. Most utilities offer incentives for upgrading to energy-efficient equipment, including HVAC improvements and electric heat pumps. Natural gas utilities offer rebates for new, energy-efficient equipment that uses natural gas — for example, water heaters, boilers, programmable thermostats, space heaters, swimming pool heaters and tankless water heaters. Agencies that use a lot of natural gas, such as those with central boiler systems, swimming pools or wastewater treatment plants, have opportunities to save more money and reduce natural gas usage by retrofitting their equipment and appliances to be more energy efficient. Local agencies that do not use much natural gas still have opportunities to use natural gas efficiently. For example, they can fine-tune equipment performance and purchase energy-efficient appliances, such as gas stoves or water heaters, and take advantage of rebates when replacements are needed. Water and Wastewater. Agencies that own or operate water or wastewater systems may be able to benefit from utility incentive programs for both electric

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ZERO-INTEREST LOANS OF UP TO $250,000 AVAILABLE FOR LOCAL AGENCY ENERGY-EFFICIENCY PROJECTS On-bill financing (OBF) is a relatively new program offered by the investor-owned utilities to provide zero-interest financing for qualified energy-efficiency retrofit projects. Local governments are eligible for loans from $5,000 to $250,000 with a loan period of approximately 10 years. Business customers are eligible for loans between $5,000 and $100,000 for up to five years. The loan is repaid through the monthly utility bill, which means that customers often experience no to little change in their utility bill until the loan is repaid; at that point their bill will decrease due to savings from the energy-efficiency upgrade. While the potential cost, savings and payback period will depend on the individual project and utility rates, the table below illustrates a hypothetical on-bill financing project. Hypothetical On-Bill Financing Project Project Cost

$100,000

Energy-efficiency rebates and/or incentives from utility

$25,000

Loan amount (remaining cost to be funded after rebates and/or incentives)

$75,000

Estimated monthly energy savings from completed retrofit project

$3,000

Simple payback period (loan amount divided by monthly savings amount, which remains on the monthly bill until the loan is paid off)

25 months

Western City, November 2013

What Local Officials Need to Know About

New Elements in GASB Financial Statements by Gary M. Caporicci Financial statements typically present the basic elements of assets, liabilities and equity. This is the case for all business and nonbusiness entities including public companies, other for-profit entities, notfor-profit entities and governments. These three elements are intended to present what an entity owns (assets), what the

entity owes (liabilities) and the entity’s residual or net assets (equity). This information, of course, is used by outside parties, such as banks, creditors and investors, to assess the value of the entity for the purposes of conducting business, making financial loans, issuing credit, buying stocks or bonds and so forth.

Gary M. Caporicci is a partner with Pun & McGeady LLP in Irvine and chair of the California Committee on Municipal Accounting. He can be reached at gcaporicci@pm-llp.com.

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This format has been the standard for many years. To keep these financial statements in order and consistent, standard-setting organizations were formed. These standard-setters are the: • Financial Accounting Standards Board (FASB) for public companies, other for-profit entities and certain not-forprofit entities; and • Governmental Accounting Standards Board (GASB) for governments and certain other not-for-profit entities. The accounting principles of the two boards are very different from one another. Business accounting stresses profitability (or losses), and not-for-profit entities follow the same accounting principles. However, governments stress budget, transparency, compliance with laws and regulations and management of citizens’ funds. Accordingly, the financial statements are similar, but have different objectives.

Long-Term Transactions Spur New Elements in Financial Statements Governments have in many cases entered into significant transactions that affect not only the current year, but also many years in the future. Such transactions may include long-term capital asset management contracts, derivative instruments, public-private partnerships, pension plans and other items. Business entities typically do not enter into such contracts. With these long-term transactions in mind, GASB created standards that will present such transactions as “new continued on page 18

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Walnut Creek Takes A Graphic Approach To Its Budget You might say the City of Walnut Creek is the victim of its own budgeting success. Over the past six years, city leaders have managed to close significant budget gaps with minimal impact on the community. They achieved this by implementing internally focused strategies that included staff reductions and negotiating concessions on health care and pension contributions. To residents and visitors in this eastern San Francisco Bay Area community, everything appears as it always has. In fact, 96 percent rated the overall quality of life

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in Walnut Creek as excellent or good in a recent citizens’ survey. But long-term financial projections show a different picture. The programs, services and facilities that the city provides to the community will no longer be fiscally sustainable at current levels as of July 1, 2014. Whatever the solution — service cuts, revenue increases or a combination of both — will require the support of an informed community.

clockwise from top left

Walnut Creek Mayor Cindy Silva shares the budget report with residents at the local farmers market; the report uses bold graphics to convey complex information in a reader-friendly way.

continued

The City of Walnut Creek won the 2013 Helen Putnam Award for Excellence in the Internal Administration category. For more about the award program, visit www.helenputnam.org.

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Western City, November 2013

Walnut Creek Takes a Graphic Approach to Its Budget, continued

JETTISONING THE TRADITIONAL BINDER

DEVELOPING KEY MESSAGES

The City of Walnut Creek decided to do something dramatically different to capture the community’s attention. Staff agreed to forgo the traditional budget binder loaded with numbers and charts in favor of creating a 20-page report called A Community Connected: The Budget Story that was compelling, accessible and perhaps even fun to read.

As a first step, the team invited all of the city’s program managers to come to a brainstorming session as a launching point for identifying challenges and the “wow factor” — programs and services that residents valued most highly. This produced more than 200 ideas, which the team reviewed to find common elements.

Then-Assistant City Manager Lorie Tinfow assembled a budget communications team comprising Communications and Outreach Manager Gayle Vassar, Finance Manager Cindy Mosser and Karen Majors, a member of the city’s community task force on fiscal health and a retired public administrator. Two independent contractors, who provided journalism and multimedia skills, rounded out the team.

League of California Cities

The team identified three key messages: 1. The city manages resources on behalf of the community in a thoughtful and effective way; 2. Walnut Creek has an outstanding quality of life thanks to longstanding partnerships among elected leaders, city staff and the community; and

3. Economic challenges require new community-supported solutions if Walnut Creek’s quality of life is to continue. Throughout the creation of The Budget Story, the team repeatedly returned to those key messages, testing each page to make sure the content related to the messages.

DEMYSTIFYING THE BUDGET PROCESS The team framed The Budget Story around the priority-based budgeting process Walnut Creek has used since 2009. Priority-based budgeting is based on identifying community goals, scoring city programs against those goals and then allocating funding to the programs most likely to achieve the goals. It is an effective but complicated process, with

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parallel tracks of community input and staff assessment of programs occurring simultaneously. The team realized that if the community were to believe Key Message 1 — that Walnut Creek manages resources in a thoughtful and effective way — it was essential that they understand how priority-based budgeting works. To demystify the budgeting process, the team created an easy-to-follow info graphic that clearly illustrates the roles played by the city council, the community and staff.

PUTTING IT ALL TOGETHER Each of Walnut Creek’s seven prioritybased budgeting goals has its own chapter with a mix of short articles and graphics. The Budget Story features portraits of staff and community members, along with key quotes, on the outer column of each page to build a virtual sense of community and make the message more personal. Every goal includes at least one “Consider This” box outlining a future challenge. A colorful two-page spread presents budget information. In addition to the traditional “revenues and expenses” pie charts, the illustrations demonstrate how just a fraction of property and sales tax revenues actually stay in Walnut Creek and outlines what the city has already done to cut costs.

DELIVERING THE MESSAGE By having The Budget Story printed and distributed with the existing city newsletter to every address in Walnut Creek, the total project cost was 55 cents per copy. Quick response (QR) codes provide easy access to the traditional budget document and other reports for those who seek more detail. In addition to the printed document, the team created an interactive online version using video already created by the city’s government-access channel, Walnut Creek TV, and also published The Budget Story online.

SPREADING THE WORD Response to The Budget Story has been positive and widespread. City staff introduced the concept at the Center for Priority Based Budgeting’s inaugural conference in 2012, and team members presented The Budget Story at the April 2013 Transforming Local Government conference in Atlanta.

MORE INFORMATION ONLINE For a link to the full version of The Budget Story, read the online version of this article at www.westerncity.com.

Closer to home, the 2013 Walnut Creek Citizens Institute class used The Budget Story as a textbook. “Having The Budget Story as a starting point meant this particular class of 35 people was quick to understand the issues, ask focused questions and take away vital information to share with families, neighbors and friends,” says Vassar, who coordinates the institute. “Too many agencies drown people in numbers when they try to communicate

about their budgets,” Vassar adds. “But a budget is really a story about choices and challenges, and who doesn’t like a good story?” ■ Contact: Gayle Vassar, communications and outreach manager, City of Walnut Creek; phone: (925) 943-5895; email: Vassar@ walnut-creek.org.

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Call Pam Maxwell-Blodgett at (800) 262-1801 to place a display (boxed) ad or for rate and deadline information, or email admanager@westerncity.com. Website Job Postings Display ads are posted on our website at no additional charge. But if you miss the deadline for getting your job opportunity ad into the magazine, you can post it on the Western City website right away. To post your job opportunity ad on our automated website, visit www.westerncity.com or contact Anita Lopez, administrative assistant; email: alopez@cacities.org; phone: (916) 658-8223.

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CITY MANAGER Sunnyvale, the “heart of the Silicon Valley,” is seeking a highly qualified and progressive leader to serve as its new City Manager. The successful candidate must be a true professional with strong skills in finance, large capital project and consensus-building, and have an orientation towards community involvement. A typical background would include a BA/BS (MA/ MS preferred) in public or business administration and at least five years of experience at the senior public manager level. The salary is open DOQ. The current range is up to $264,000. Contact Bill Avery at 408-399-4424 or Ann Slate at 805-459-5132. To apply, submit a letter of interest, resume with current salary and five work references (email preferred) to Avery Associates by November 20, 2013. A job announcement is available at www.averyassoc.net/jobs.

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Temporary staff help is just a phone call away! Police Chief, City of Oakland, CA The City of Oakland (estimated population of 420,183) is located on the east side of the San Francisco Bay and is home to over 50 distinct and eclectic neighborhoods, 17 commercial districts, a progressive downtown, and superior cultural and recreational amenities. The City is now seeking a Chief of Police. Candidates for this position must possess a combination of education and experience equivalent to a Bachelor’s Degree in Public Administration or Law Enforcement and ten to fifteen years of progressively responsible administrative experience—including at least five years of first level (Sergeant) supervisory experience; five years of command-level (Lieutenant or Captain) experience; and two to three years of experience as Deputy Chief in a medium-to-large law enforcement agency. It is desirable that candidates possess a master’s degree. The salary for the Chief of Police is competitive and dependent upon qualifications. If you are interested in this outstanding opportunity, please visit www.bobmurrayassoc.com to view the detailed position brochure and to apply. Please contact Bob Murray or Regan Williams at (916) 784-9080, should you have any questions. Closing date November 29, 2013. phone 916•784•9080 fax 916•784•1985 www.bobmurrayassoc.com

www.cacities.org

City Administrator City of Piedmont, CA

Located in the beautiful Oakland Hills overlooking the San Francisco Bay, Piedmont’s approximately 11,000 residents

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take great pride in their community and enjoy quality homes on

Peckham & McKenney

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service, and quality of life. A full-service Charter city, Piedmont operates under a Council/Administrator form of government with 94 FTE’s, $23.2M budget, and the departments of Administration, Public Works, Police, Fire, and Recreation. The ideal candidate will possess proven local government leadership

Filing deadline: November 25, 2013.

experience and a solid understanding of sustainability, public/ private partnerships, and the provision of high-quality, responsive customer service. A Bachelor’s degree in public/business administration or related field is required; Master’s preferred. Competitive salary DOQ and excellent benefits.

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City Engineer City of Tracy

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Getting up to speed on city issues can be challenging. Western City magazine makes it easier to get a handle on the issues affecting your city. Our website gives you a way to easily locate recent articles that address:

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» Municipal Finance » Land Use & Planning » Personnel » Public Safety » Public Trust & Ethics » Public Works & Infrastructure » Youth Visit www.westerncity.com and click on “Topics” to read helpful articles that give you both the big picture on statewide issues and detailed examples from cities throughout California.

Western City, November 2013

Financial Resources to Support Energy Efficiency, continued from page 9

• Some agency facilities may be eligible for free audits (or analyses) to identify energy-efficiency opportunities. Other agency facilities can use do-it-yourself assessments to identify potential energy savings.

the utility during periods of high energy demand. The programs also offer financial incentives to water and wastewater facilities for temporarily reducing usage upon request by the utility during periods of high energy demand. J

City Clerk Director of Safety and Community Services City of Commerce, CA The City of Commerce (population of 13,000) is a vibrant and growing “Industry Gem” in the heart of Los Angeles County. Commerce is now seeking a City Clerk and a Director of Safety and Community Services. The salary range for the City Clerk is $8,198 to $9,981 monthly, and the salary range for Director of Safety and Community Services is $9,979 to $12,162 monthly; placement within the salary range for both positions is dependent upon qualifications. The City also offers an attractive benefits package. If you are interested in applying for either of these outstanding opportunities or would like to view a detailed recruitment brochure for either position, please visit www.bobmurrayassoc.com. Please contact Mr. Joel Bryden or Mr. Bob Murray at (916) 784-9080 should you have any questions. Closing date November 8, 2013. phone 916•784•9080 fax 916•784•1985 www.bobmurrayassoc.com

Director of Human Resources City of Rancho Cucamonga, CA Highlighted by scenic mountain views and tree-lined neighborhoods, Rancho Cucamonga (pop. 169,498) is one of Southern California’s most family-oriented, safe and prosperous communities. Reporting to the Deputy City Manager/Administrative Services, the Director will work closely with the City Manager and executive management team to manage the areas of employee relations, benefits administration, recruitment, and risk management. An experienced, hands-on manager with in-depth understanding of all aspects of human resources, particularly labor negotiations and risk management is sought. Bachelor’s degree in business/ public administration, human resources, or related field required. Salary range $100,368 to $142,296 DOQ.

League of California Cities

Please send your cover letter and resume electronically to:

Peckham & McKenney apply@peckhamandmckenney.com Resumes acknowledged within two business days. Call Bobbi Peckham at (866) 912-1919 for more information. A detailed brochure is available at www.peckhamandmckenney.com. Filing deadline: November 27, 2013.

• Utilities also offer benchmarking opportunities, which are ways of evaluating the energy performance of buildings, as a means of understanding building energy use and savings options.

California Energy Commission Funding Opportunities The California Energy Commission periodically offers energy grants and/or financing programs to support investments in energy-efficient equipment and fuelefficient vehicles, as well as alternativeenergy generation projects. Specific program availability varies over time. Information about these programs is available at www.energy.ca.gov/efficiency/financing/.

Sustainable Energy Bond Program Offered by the California Statewide Communities Development Authority and the Foundation for Renewable Energy and Environment, this program offers access to tax exempt financing for sustainable energy investments. Under the Sustainable Energy Bond Program, participating entities and organizations contract with an energy service company to complete energy efficiency and water conservation retrofits. Improvements could include street lighting, building lighting, pumps, HVAC, system controls, boilers, chillers, ducting, windows, partial roofing, toilets and more. The program participants will receive substantial cost savings, including a contractual guarantee sufficient to cover the full cost of all retrofit work. All projects are financed through tax-exempt bonds. Information is available at www.cacom munities.org/energy-finance-programs.

Online Funding Wizard The CoolCalifornia Funding Wizard is an online tool that identifies funding resources (grants, loans and rebates) to support energy and water efficiency, green fleets, recycling and other sustainability projects. Find more information at www. coolcalifornia.org/funding-wizard-home.

www.cacities.org

Getting Started For those new to utility incentive or financing opportunities, a good place to start is by contacting your utility account manager. And for agencies that are part of an Energy Watch, Energy Leader or Local Government Partnership, contacting the partnership is also a good place to start. ■

MORE RESOURCES ONLINE For more information about these and other energy financing programs, read the online version of this article at www.westerncity.com.

In an average office, the HVAC system may account for 28 percent of the energy use.

E S

City Manager City of Eureka, CA

The City of Eureka, with a population of 28,600 (with another 14,000 just outside city limits) is located on Humboldt Bay, with

Please send your cover letter and resume electronically to:

the Pacific Ocean to the west and mountains and forests to the

Peckham & McKenney

east, north, and south. It is the North Coast’s largest coastal town

apply@peckhamandmckenney.com

north of San Francisco and the principal city and county seat of

Resumes acknowledged within two business days. Call Phil McKenney at (866) 912-1919 for more information. A detailed brochure is available at www.peckhamandmckenney.com.

Humboldt County. Appointed by the Mayor and City Council, the City Manager will oversee 275 FTE’s and FY 2013/14 total revenues of $86.5 million. The ideal candidate will have proven experience in economic development, downtown and waterfront development, housing and neighborhood improvements, public

Filing deadline: December 2, 2013.

safety, and transportation management. Bachelor’s required, Master’s preferred. Salary will be commensurate with the experience and qualifications of the selected candidate and the City offers an excellent benefits package.

Administrative Services Director City of Stanton, California Salary: $116,256 - $141,312 annually, DOQ

The City of Stanton, located in northern Orange County, is currently searching for a dynamic, technically proficient, adaptable and team-oriented professional with a proven record of achievement in planning and directing the activities of the Finance Department. Requirements are a Bachelor’s degree in Accounting, Finance or related field (MBA/MPA/CPA is highly desirable) and five years of administrative, municipal and financial management experience. For a detailed announcement, visit the City’s website: www.ci.stanton.ca.us (and click on Employment Opportunities) or Stanton City Hall at 7800 Katella Ave., Stanton, CA 90680.

www.westerncity.com

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Watch for these Upcoming Opportunities: • California State University, East Bay – Police Lieutenant • San Diego State University, California – Director of Public Safety and Chief of Police • City of Dallas, Texas – City Manager • City of Oxnard, California – City Manager • City of Phoenix, Arizona – City Manager For more information and filing deadlines, please contact: Bob Murray and Associates, 1677 Eureka Road, Suite 202, Roseville, CA 95661 Phone: (916) 784-9080, Fax: (916) 784-1985, E-mail: apply@bobmurrayassoc.com

Western City, November 2013

What Local Officials Need to Know About New Elements in GASB Financial Statements, continued from page 10

elements” in the financial statements of governments. GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position, in June 2011, with an effective date after December 2011. In California, these changes took effect in December 2012 or June 2013. J

Two New Elements and a Name Change

The two new elements apply to future reporting periods.

GASB Statement No. 63 added two new elements to the financial statements for governments:

GASB also renamed the equity element, which is now called “Net Position.”

• Deferred Outflow of Resources; and • Deferred Inflow of Resources. R

Palo Alto, located in the Silicon Valley, is known as the global center of technology and innovation with worldwide recognition. This charming community of 65,000 residents, anchored by a vibrant downtown and tree-lined streets, is well served by a full service municipal organization that includes public safety and ownership/operation of utilities. This exciting mix of tradition, leading-edge innovation, and development creates an exceptional environment for high caliber professionals to contribute in a leadership role with a municipal organization that is a national model for best practices and collaborative efforts in local government. Seeking top professionals for the following outstanding career opportunities: City Auditor (Council Appointed Officer) – Oversee the Auditor’s Office on performance, financial, and revenue audits while contributing to enhance efficiencies and effective operations on a city-wide basis. First review of resumes will begin in late November/early December.

So governmental financial statements now have five elements, but the private sector still has the original three elements. The five elements for governments are: 1. Assets; 2. Deferred Outflows of Resources; 3. Liabilities; 4. Deferred Inflows of Resources; and 5. Net Position.

Governments have in many cases entered into significant transactions that affect not only the current year, but also many years in the future.

Chief Building Official – Reporting to the Director of Development Services, the CBO is the City’s primary technical expert on building safety and manages the Division’s plan review and inspection activities. Apply immediately; first review of resumes is currently underway. Confidential inquiries encouraged to Heather Renschler at (916) 630-4900. Further details on responsibilities and compensation are available through Ralph Andersen & Associates. Send resume and supporting materials to apply@ralphandersen.com.

Ralph Andersen & Associates

Police Chief, City of Greenfield, CA The City of Greenfield is a community of approximately 18,000 residents located in the heart of California’s Salinas Valley, at the foothills of the Pinnacles National Park. Greenfield is now seeking Chief of Police to oversee the Police Department’s 14 sworn and 3 professional staff members; the Department has a FY 2014 budget of $2.9 million. The ability to build strong, open, and genuine connections with a very diverse, complex community is essential for a candidate’s success in this position. A typical candidate for this position will possess progressively responsible, diverse experience in law enforcement and have prior experience as a Police Chief in a community of similar size and complexity to Greenfield or command-level experience in a larger city. Candidates should possess a Bachelor’s Degree in Criminal Justice, Public Administration, or a related field. The salary range for the Chief of Police is open, up to $125,000 annually; placement within the range is dependent upon qualifications. If you are interested in this outstanding opportunity, please apply online at www.bobmurrayassoc.com. Please contact Regan Williams at (916) 784-9080 should you have any questions. Brochure available. Closing date November 29, 2013. phone 916•784•9080 fax 916•784•1985 www.bobmurrayassoc.com

League of California Cities

Don’t Miss the Top Hits on Our Website! 1 How the Arts and Cultural Tourism Spur Economic Development – May 2013

2 How the Second Amendment Right to Bear Arms Affects the Local Police Power to Regulate Firearms – November 2010

3 The “Front Page” Test: An Easy Ethics Standard – February 2012

4 The Power of Groupthink: The New Denial – March 2012

5 The Bay Delta Conservation Plan: An Overview and Local Perspectives – July 2013

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More Information About Deferred Outflows And Inflows

E S

City Attorney — City of Point Arena, CA

GASB has released several statements that address in greater detail the deferred outflows and inflows of resources in the context of these topics:

Point Arena is seeking a City Attorney, with municipal, land use, and labor law background, to advise and guide the City and its 5 member volunteer Council. We are a small city of 450 people, nestled on the rugged northern California coast. Gateway to Stornetta Public Lands, the Point Arena Lighthouse, and several other large public reserves, the City is home to a thriving fishing community, 4 schools and an excellent homegrown library and movie and performing arts theater, in the heart of our historic downtown. With strong volunteer spirit and community engagement, our City and our citizens make great things happen, including numerous public festivals throughout the year. Attendance would be required at our regular Council and Planning Commission meetings once a month. Otherwise, teleconferencing is available. For further information, and to view the Request for Qualifications, please see our website at cityofpointarena.com or call City Hall (707) 882-2122. Submit proposals by November 20th, 2013.

• Hedging Derivatives (GASB Statement No. 53); • Certain Service Concession Arrangements (GASB Statement No. 60); • Items Previously Reported as Assets and Liabilities (GASB Statement No. 65); • Pension Plans (GASB Statements Nos. 67 and 68); and • Government Combinations (GASB Statement No. 69).

City Manager, City of Cathedral City, CA With a population of 53,000, Cathedral City is conveniently located between Palm Springs and Rancho Mirage in Riverside County. Incorporated in 1981, Cathedral City is the second-largest city in the popular Coachella Valley. The City is proud of its cultural diversity and rich history; the Agua Caliente Band of Cahuilla Indians established their reservation in 1876, and the City housed its first subdivision in 1925. The City Council is looking for a confident and mature professional to assume the duties of City Manager. The ideal candidate will be a dynamic leader who can garner the respect of the Council, staff, and members of the community with impeccable communication and interpersonal skills. The City Manager will guide, follow up with and hold staff accountable while including staff in the decision-making process. The new City Manager should have a demonstrated background of success in economic development and should possess an outcome-based mindset. A strong understanding of financial management will be a key to success in this position. A Bachelor’s Degree in Public Administration, Business Administration or a related field is desired. The City also offers an attractive compensation and benefits package. If you are interested in this outstanding opportunity, please apply online at www.bobmurrayassoc.com. Please contact Mr. Bob Murray at (916) 784-9080 should you have any questions. Brochure available. Closing date November 8, 2013.

Conclusion While it may seem that GASB Statement No. 63 will make financial reporting more complicated, displaying the significant deferred elements separately will improve financial reporting. In addition, financial reporting will be consistent with new GASB standards. For more detailed and technical information, read the online version of this article at www.westerncity.com. ■

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Western City, November 2013

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Western City, November 2013

Thank you to all of the 2013 League Partners

Platinum ($15,000+) 1,2

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2 2 2

1,2 BUILDING AMERICA®

Gold ($10,000+) Hanson Bridgett LLP Lewis Investment Company2 Liebert Cassidy Whitmore1 1,2

Meyers Nave1,2 Renne Sloan Holtzman Sakai LLP1,2 Republic Services Inc.2

Richards Watson & Gershon1,2 Willdan Young Homes2

Silver ($5,000+) California & Nevada IBEW/ NECA Labor-Management Cooperation Trust California Grocers Association2 DW Development2 Dart Container Corp.2

Greenwaste Recovery Inc. Interwest Consulting Group Inc. JPMorgan Chase & Co. Kronick Moskovitz Tiedemann & Girard1

Northrop Grumman The Olson Company2 Prometheus Real Estate Group Inc.2 San Manuel Band of Mission Indians2 ServPro2

Schiff Hardin LLP Starbucks Tribal Alliance of Sovereign Indian Nations2 US Bank Union Bank

Bronze ($3,000+) Alvarez-Glasman & Colvin American Forest & Paper Association American Red Cross Best Way Disposal2 CMTC CalPortland2 Cerrell Associates CORE Public Affairs2 Colantuono & Levin2 Desert Valley Medical Group Inc./Prime Healthcare2 2

Edgewood Partners Insurance Center Fieldman Rolapp & Associates Fulbright & Jaworski GDQ Law2 Garaventa Enterprises2 Goldfarb & Lipman LLP Hill International2 Holliday Rock Company Jefferies LLC

Library Systems & Services LLC Marin Sanitary Service2 Molycorp2 Bob Murray & Associates PARS/Phase II Pacific Rail2 Piper Jaffray2 Psomas2 James Ramos2 Recology2

Robson Homes LLC2 San Bernadino County Safety Employees2 San Bernardino Police Officers Association Santa Ynez Band of Mission Indians2 Seifel Consulting Inc. Stradling Yocca Carlson & Rauth SummerHill Homes2 TREH Development2

Basic ($1,000+) AMR2 Charles Abbott Associates2 Accretive Realtors2 Amador Valley Industries2 Architects Orange2 Ashwood Construction Atkins Avery Associates2 Berliner Cohen Blue Line Transfer Inc.2 Bowlby Group Inc.2 CARE2 CR&R2 California Consulting2

California Debt & Investment California Hotel Lodging California Refuse Recycling Council Calimesa Chamber2 City Ventures2 Classic Communities2 Climatec2 Cost Control Associates Inc. Cunningham Davis2 Desert Valley Builders2 Diamond Hills Auto2 DiMare Van Vleck & Brown LLC Dokken Engineering2

E&J Gallo Emanuels Jones and Associates Fard Engineers2 Fresno Police Officers Association GHD Inc.2 Gresham Savage Nolan & Tilden PC Innisfree Ventures2 J.R. Roberts/Deacon Inc. Jamboree Housing Corporation Jones Hall2 Jones & Mayer

Join the Partners Program Today! Contact Mike Egan | (916) 658-8271 | egan@cacities.org

Kasdan Simonds Riley & Vaughan LLP LaBarge Industries2 Lew Edwards Group2 Marchetti Construction Inc.2 Morley Brothers LLC2 Napa Recycling2 Potential Industries Rancho San Gorgonio2 Riverside Construction2 Robobank2 San Mateo County Association of Realtors2 Santa Monica Police Officers Association

Severn Trent Environmental2 Sobrato Organization2 Specialty Solid Waste & Recycling2 Studio T SQ2 Swinerton Management UCLA Government & Community Relations Urban Futures2 Vali Cooper & Associates Inc. Waste Management2 West Builders2 Partial list as of 10/1/2013

1 – Institute for Local Government supporter 2 – CITIPAC supporter