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HomeMy WebLinkAboutMID-YEAR DOCUMENT2010-11 Mid-Year Budget Review For the 2009-11 Financial Plan Major City Goal: Traffic Congestion Relief Major City Goal: Preservation of Critical Services City of San Luis Obispo Major City Goal: Economic Development Major City Goal: Infrastructure Maintenance 2009-11 Financial Plan MID-YEAR BUDGET REVIEW: 2010-11 JAN HOWELL MARX, MAYOR JOHN ASHBAUGH, VICE-MAYOR ANDREW CARTER, COUNCIL MEMBER DAN CARPENTER, COUNCIL MEMBER KATHY SMITH, COUNCIL MEMBER KATIE LICHTIG, CITY MANAGER Prepared by the Department of Finance & Information Technology Mary Bradley, Interim Director/City Treasurer Debbie Malicoat, Finance Manager Jennifer Thompson, Revenue Supervisor City of San Luis Obispo TABLE OF CONTENTS A. Transmittal Memorandum Overview A-1 Financial Condition Summary A-2 Mid-Year Budget Requests A-4 Prospects for the Future A-4 Status of Goals and Objectives A-5 Conclusion A-5 B. Financial Condition Summaries Revenues by Fund B-1 Operating Programs B-8 Capital Improvement Plan B-9 Interfund Transactions Operating Transfers B-11 Reimbursement Transfers B-13 Changes in Financial Position Combined Statements All Funds Combined B-14 Governmental Funds B-15 Enterprise and Agency Funds B-16 General Fund B-17 Special Revenue Funds Downtown Association B-18 Tourism Business Improvement B-19 Gas Tax B-20 Transportation Development Act B-21 CDBG B-22 Law Enforcement Grant Fund B-23 Capital Project Funds Public Art Fund B-24 Proposition 42 Fund B-25 Capital Outlay B-26 Parkland Development B-27 Transportation Impact Fee B-28 Open Space Protection B-29 Airport Area Impact Fee B-30 Affordable Housing B-31 Fleet Replacement B-32 LOVR Sub-Area Fee Fund B-33 Debt Service Fund B-34 Enterprise Funds Water B-35 Sewer B-36 Parking B-37 Transit B-38 Golf Fund B-39 Whale Rock Reservoir B-40 C. Mid-Year Budget Requests Summary of Mid-Year Budget Requests C-1 D. Recent Financial and Revenue Reports Quarterly Financial Newsletter: December 2010 D-1 Sales Tax Newsletter: Third Calendar Quarter 2010 D-3 Monthly TOT Report: December 2010 D-4 E. Status of Goals and Objectives Introduction E-1 Status of Major City Goals E-4 Status of Other Council Objectives E-26 Carryover Goals and Objectives E-27 Status of Major CIP Projects E-29 Section A TRANSMITTAL MEMORANDUM TRANSMITTAL MEMORANDUM A-1 March 1, 2011 TO: City Council FROM: Katie Lichtig, City Manager Mary Bradley, Interim Director of Finance & Information Technology Debbie Malicoat, Finance Manager Jennifer Thompson, Revenue Supervisor SUBJECT: MID-YEAR BUDGET REVIEW FOR 2010-11 OVERVIEW In monitoring our fiscal condition, we provide ongoing financial information through a variety of methods, including on-line access to up-to-date information, “hard copy” monthly reports, quarterly financial newsletters, and focused reports on key fiscal indicators such as sales tax, transient occupancy tax (TOT) and investments. In addition to these, the City’s Budget and Fiscal Policies also call for preparing a formal report to the Council every six months on the City’s financial status. This allows us to take a broader look at our financial picture at the mid-point of the fiscal year by: 1. Updating beginning fund balance projections based on actual results for the prior fiscal year. 2. Analyzing revenue trends since adoption of the Financial Plan Supplement, and revising revenues and ending fund balance projections accordingly. 3. Identifying and presenting any fiscal problem areas to the Council, and recommending corrective action or additional funding if required. This is also an opportunity to provide the Council with a formal update on the status of major City goals, capital improvement plan (CIP) projects and other objectives. Focus on Sustainability. Although experts have declared the “Great Recession” over, the General Fund is still suffering from its economic impacts. While revenue available to operate the City has dropped significantly, expenses have continued to increase. Our major revenues have, for the most part, reached bottom and started a slow, moderate climb. Unfortunately, while revenues are finally increasing, they are down from their recent peaks and in some cases, we do not expect them to return to past levels for some time. Our task now is to address the structural gap between revenues and expenditures and develop a Financial Plan which will be sustainable for the long term. Over the last several years, a number of significant steps have been taken to keep our community’s fiscal health strong as the long-term effects of the recession unfolded. Most recently, employee groups and the City agreed that salary costs would remain unchanged in calendar year 2011. In addition, there was agreement that most employees would be responsible for a larger share of their health insurance costs as premiums rose. Although the City has continued efforts to prepare for our new economic reality, key challenges to fiscal sustainability remain. These include: • Adverse State Fiscal Outlook. Our City was spared large budget reductions in the State budget process earlier this year. In the meantime, Governor Brown has proposed deep cuts to State services to address the $25 billion State budget gap projected for next fiscal year. While it is possible that we may again escape major State budget cuts, continued funding for the COPs program and jail booking fees are dependent upon voter approval of a Vehicle License Fee extension in June. The total at risk for these two programs is $350,000. • Increased Retirement Costs. CalPERS has provided information about the City’s employer contribution rates for 2011-12 and estimates for TRANSMITTAL MEMORANDUM A-2 the following two years. Due to changes in demographic assumptions, the rates for 2011-12 were higher than originally projected. The effect of these increases was approximately $520,000 more than was originally assumed. Steeper increases are projected beginning in 2013-14 as prior year investment losses begin to be reflected in the rates. There are several other issues which could cause rates to rise even further in the future, most notably a possible decrease in assumed investment return and cash flow considerations which could require additional contributions. • Ongoing Infrastructure and Asset Maintenance Needs. The City has a variety of assets that are important to our delivery of services to the community. These include infrastructure such as streets, sidewalks, traffic signals, lights, and buildings as well as vehicles and information technology equipment. In the past, maintenance and replacement of these General Fund assets have been funded on a “pay as you go” basis. In order to develop a Financial Plan that is sustainable for the future, funds should be set aside to provide for maintenance and replacement of these assets. In many cases, failure to repair or replace infrastructure can result in increased future costs or service disruption. Staff is working to develop a five year Capital Improvement Plan which includes the necessary funds on a measured and prudent schedule for Council’s consideration. These amounts are likely to be larger than what has previously been anticipated in the Five Year Forecast that was presented to Council in December 2010. General Fund Focus This mid-year budget review primarily focuses on programs and projects financed through the General Fund. In addition, notable changes in several other funds are highlighted. Consistent with the City's policy of annually reviewing our enterprise fund rates, a comprehensive analysis will be presented on June 14, 2011 addressing rate and revenue issues in the water, sewer, parking, transit and golf funds. No Mid-Year Budget Requests Given our current fiscal outlook for 2010-11 and beyond, there are no proposed mid-year budget requests that are essential to meet costs that were not anticipated when preparing the 2010-11 Financial Plan Supplement (Supplement). FINANCIAL CONDITION SUMMARY Beginning General Fund Balance The beginning General Fund balance is $1.7 million more than projected in the adopted 2010-11 budget. After accounting for funds that were unspent in 2009-10 and “carried over” to 2010-11, the net increase to beginning fund balance is $623,000 more than originally anticipated. Assuming that revenues and expenditures perform as anticipated, the projected ending General Fund balance for 2010-11 is on target, and the reserves are projected to be over 20% of operating expenditures. While this information requires no action as part of the Mid- Year Budget Review, it is an opportunity to highlight the prudent fiscal management taking place. General Fund Revenues Included in Section B of this report is a summary of revenues by fund and major source that provides actual results for 2009-10 along with a comparison of the revised 2010-11 revenue projections with original budget estimates. The following summarizes the most significant General Fund revenue revisions: Sales Tax. Sales tax revenues are projected to be up from the original 2010-11 budget by $368,000 (2.2%). This is $172,900 (1.5%) more than the original 2010-11 budget for general sales tax and $195,100 (3.7%) more for Measure Y sales tax. This is still below the 2007 peak for general sales tax by $2,493,800 (17.8%). Property Tax. Property tax has been decreased from the original budget by 5.6% ($523,100), based on property tax revenue estimates provided by the County. This decrease is a result of slightly lower assessed valuation combined with a negative Consumer Price Index adjustment to property values for this fiscal year Transient Occupancy Tax. The original budget estimated that TOT would grow by 2%. Based on year-to-date receipts, we are revising this to an TRANSMITTAL MEMORANDUM A-3 increase of 6%. This results in a revised estimate of $4,770,000. This is still below the 2008 peak by $284,700 (1%). Utility Users Tax. Based on stronger than anticipated year-to-date results, we have increased this by $247,800 (5.4%) from the original estimate. Utility Users Tax is one revenue that has remained stable despite the state of the economy. Franchise Fees. We have decreased this projection from the original budget by 5.5% ($140,400) based on weaker than anticipated year to date results. This is .5% below the 2009 peak. Property Tax In-lieu of Vehicle License Fees. Based on collections to-date, this has been revised upward from the original budget by $96,300 based on actual receipts from the County. This is 2.8% above the original estimate. Public Safety Service Charges. Police administrative citation revenues are $130,000 greater and other police department service charges are $60,000 greater than projected based on current collections. Fire service charges are also up by about $50,000. This results in a net increase for public safety service charges that are $240,000 higher than the original budget. Fines and Forfeitures. This has been decreased by $22,100 from the original budget based on actual results in 2009-10 and year-to-date results. Interest Earnings. Based on results to-date, and the very low interest yields currently experienced, this has been revised to a decrease of $75,000. Mutual Aid Revenues. Revenues from mutual aid responses are $73,300 year to date, with no further collections expected for the year. This is $576,700 less than the original budget and $1,390,000 less than the 2009 peak. General Fund Operating Expenditures Section B includes an overview of changes to the operating program budgets. Organized by function, these schedules include the original budget, re- appropriations for encumbrances and carryovers, and budget changes to date since approval of the Supplement in June 2010. At the end of 2009-10, there were unspent operating budgets, some of which were not required for carryover to the next fiscal year. Of the unspent amount, $1.1 million carried over to the current fiscal year. Along with the carryover amount, an offsetting amount of fund balance rolled forward. Providing for carryover allows departments to expend funds to complete projects or workplans over the course of the two year Financial Plan. While it appears that all these funds will not be needed during this fiscal year, this practice allows the Departments to achieve their mission and be agile in responding to changes. The current Mid-Year Budget assumes all but $300,000 will be spent during the year. To date, the Council has approved about $200,000 in additional operating expenditures in the current fiscal year. In addition to the carryovers, other changes to the budget include assumptions made for adjustments to salaries and benefits that, due to recent employee group agreements, will not be necessary in the current fiscal year as well as assumptions for current year expenditure savings. Significant Changes in Other Funds Golf Fund On June 2, 2010 Council deferred implementing a $1.00 per round rate increase. The Mid-Year Budget Review reflects the fiscal impacts of this deferral, which results in an additional contribution from the General Fund of $79,300. Parking Fund On June 2, 2010 Council deferred implementing a proposed rate increase. The Mid-Year Budget Review reflects the fiscal impacts of this deferral, which results in reduced revenues of $357,400 from the original budget. Water Fund TRANSMITTAL MEMORANDUM A-4 Based on current trends, revenue estimates for water sales revenues have been revised downward significantly. There are a variety of factors that influence water sales. A full fund analysis will be presented in June 2011 with the 2011-13 Financial Plan. Transit Fund Public Works staff has recently discovered that there may be a shortfall of Federal Transit Administration (FTA) funding for 2010-11. In February 2011, the Federal government released its first apportionment for FTA formula funding. FTA is one of the two largest funding sources for the Transit Fund each year. Due to reporting inconsistencies in the National Transit Database, the appropriation for the SLO Urbanized Area (UZA) was reduced by approximately $450,000. This reduced amount affects the operating assistance grant that has been reflected for the Transit Fund in the current fiscal year. Staff proposes to offset the effect primarily by deferring one capital bus replacement ($377,000) that was approved in this year’s federal program of projects. These changes are reflected in the enclosed Mid-Year Budget Review. Additionally, staff will seek to program some of the existing SLO UZA reserve for operations to cover the shortfall. Staff is working with the FTA to discuss the circumstances that led to the reporting inconsistencies, which in turn led to the reduction in funding. The National Transit Database reporting was impacted by a medical leave of absence by SLO Transit’s Resident Manager. During this leave of absence, the City sought and received reporting requirement waivers, however it was not known at the time that such a waiver would potentially reduce transit funding for the UZA. A final apportionment is scheduled for later this fiscal year. Capital Improvement Plan This part of Section B reflects the original CIP budgets for 2010-11 by fund, re-appropriations for encumbrances and carryovers, and budget changes to date since approval of the 2010-11 Financial Plan Supplement in June 2010. The total capital improvement plan is $8,981,700 greater than projected in the Supplement due primarily to carryovers and encumbrances. There are no new CIP projects for Council consideration. Interfund Transactions This portion of Section B reflects actual interfund transfers for 2009-10 along with the original budget and revisions for 2010-11. The revised operating transfers are generally driven by Council approved changes since the adoption of the 2010-11 budget. The reimbursement transfers are based on the 2009- 2011 Cost Allocation Plan adopted by Council on February 2, 2010. Projected Ending Fund Balances/Working Capital Based on the revised revenue projections and expenditures summaries, this part of Section B includes a summary of projected changes in financial position for each of the City's operating funds. As with the revenue projections, the changes in financial position schedules include the actual fund balances/working capital for 2010-11 and the original budget and revised projections for 2010-11. Based on the revised revenue and expenditure projections for the General Fund, the ending fund balance is anticipated to be $1.3 million higher than originally budgeted. This is $1 million more than the minimum reserve policy requires. While this is positive news, the Mid-Year Budget indicates that there is a structural gap between revenues and expenditure and absent corrective action, this gap will continue. MID-YEAR BUDGET REQUESTS As noted previously, there are no mid-year operating or capital budget requests that need to be approved now. PROSPECTS FOR THE FUTURE General Fund Five-Year Forecast As part of the background materials prepared for the Goal Setting Workshop, on December 14, 2010 Council received an updated General Fund Five- Year for 2011-12 through 2015-16. The Forecast projected a budget gap of $3 million in 2011-12, growing to $3.4 million in 2013-14. On average, the TRANSMITTAL MEMORANDUM A-5 budget gap was projected to be $2.7 million over the five year period. Based on the revised revenue and expenditure assumptions included in the Mid-Year Budget Review, modifications to the budget that the Council has already approved, and staff’s continued analysis of current trends, the projected gap between revenues and expenditures has narrowed. This is primarily due to two factors: revenues appear to be recovering slightly more quickly than originally anticipated and recent employee contracts have helped contain costs. However, other financial practices are being reviewed (such as best practices for one-time revenues and expenditures such as for mutual aid) that may have an impact on the budget gap. Moreover, while this issue is still being assessed, it appears that capital and infrastructure needs will probably be larger than anticipated in the previous Forecast. In sum, in spite of the positive changes to revenues and the efforts to contain staffing costs, the City is still facing a significant structural gap between revenues and expenditures for the five-year period unless corrective action is taken. Council will receive a formal update of the Forecast on April 12, 2011 in the context of providing Strategic Budget Direction. 2011-13 Financial Plan Council has already begun the arduous task of balancing the budget for 2011-13 and beyond. While the budget-balancing difficulties facing us are significant, we go into the 2011-13 budget process with a number of strengths. We have strong financial systems and procedures in place. We have an engaged community and information on community priorities. We have committed staff and strong Council leadership. And, we have a great tradition of doing the right thing. All of these taken together will result in a Financial Plan that aligns community priorities and financial resources over the long term. STATUS OF GOALS AND OBJECTIVES Section E of this report provides a formal look at the status of Major City Goals, Other Council Objectives and Major CIP Projects as of February 2011. As reflected in the report, with about 80% of the Financial Plan period completed, we are generally on track in achieving the major City goal “action plans.” On the other hand, some of the goals and objectives require minor modifications to task schedules. CONCLUSION The Mid-Year Budget Review document for 2010- 11 has been prepared in order to present the Council with a formal review of the City's financial condition six months into the fiscal year, and to provide an update on the status of major City goals, CIP projects and other objectives. The Department Heads and Budget Review Team and will be prepared to respond to any questions the Council may have regarding this report at their March 1, 2011 meeting. If you have any questions in the interim, or require additional information, please do not hesitate to contact us. Section B FINANCIAL CONDITION SUMMARIES REVENUES BY MAJOR CATEGORY AND SOURCE SUMMARY BY FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance GOVERNMENTAL FUNDS General Fund 49,265,700 50,769,700 51,071,300 301,600 Special Revenue Funds 3,177,700 2,998,800 4,086,500 1,087,700 Capital Project Funds 2,326,500 1,211,700 10,193,400 8,981,700 Total Governmental Funds 54,769,900 54,980,200 65,351,200 10,371,000 ENTERPRISE FUNDS Water Fund 14,475,600 15,727,500 15,407,500 (320,000) Sewer Fund 13,636,100 13,407,600 13,467,600 60,000 Parking Fund 3,788,300 4,006,000 3,648,600 (357,400) Transit Fund 3,859,200 2,832,400 4,681,700 1,849,300 Golf Fund 395,300 423,700 346,100 (77,600) Whale Rock Reservoir Fund 1,066,000 1,170,000 1,170,000 Total Enterprise Funds 37,220,500 37,567,200 38,721,500 1,154,300 TOTAL $91,990,400 $92,547,400 $104,072,700 $11,525,300 B-1 REVENUES BY MAJOR CATEGORY AND SOURCE GENERAL FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Tax Revenues Sales & use tax General 10,723,900 11,327,100 11,500,000 172,900 Measure Y 5,252,500 5,293,900 5,489,000 195,100 Public safety (Proposition 172)257,900 258,900 258,900 Property tax 8,579,300 9,323,100 8,800,000 (523,100) Transient occupancy tax 4,496,100 4,295,800 4,770,000 474,200 Utility users tax 4,862,400 4,612,200 4,860,000 247,800 Property tax in-lieu of VLF 3,565,100 3,454,700 3,551,000 96,300 Franchise fees 2,396,700 2,567,400 2,427,000 (140,400) Business tax 1,830,100 1,868,100 1,786,700 (81,400) Real property transfer tax 129,000 175,000 140,000 (35,000) Total Tax Revenues 42,093,000 43,176,200 43,582,600 406,400 Fines & Forfeitures Vehicle code fines 151,900 155,000 155,000 Other fines & forfeitures 49,800 62,100 40,000 (22,100) Total Fines & Forfeitures 201,700 217,100 195,000 (22,100) Investment and Property Revenues Investment earnings 843,400 625,000 700,000 75,000 Rents & concessions 61,400 175,600 120,000 (55,600) Total Investment & Property 904,800 800,600 820,000 19,400 Subventions & Grants Motor vehicle in-lieu 135,000 132,000 132,000 Homeowners & other in-lieu taxes 75,600 76,500 75,400 (1,100) Other in-lieu taxes 20,500 17,500 20,900 3,400 SB 90 reimbursements Police training (POST)37,600 60,000 30,000 (30,000) Mutual aid reimbursements 639,000 650,000 73,300 (576,700) COPS grant AB3229 100,000 100,000 100,000 State Office of Traffic Safety (OTS)22,300 Zone 9 reimbursements 100,200 95,000 95,000 Other state & federal grants 104,800 167,000 167,000 Total Subventions & Grants 1,235,000 1,131,000 693,600 (437,400) Service Charges Police Services Accident reports 3,300 3,000 3,000 Colision investigation 13,400 12,000 12,000 Alarm permits 125,100 100,000 100,000 DUI cost recovery 7,500 30,000 33,000 3,000 Police department permits 10,800 8,000 10,000 2,000 Tow release fee 22,100 21,000 21,000 Booking fee recovery Tobacco permit fees 19,600 12,500 20,000 7,500 Administrative citations 138,000 120,000 250,000 130,000 Parking citations - PD issued 64,500 50,000 88,000 38,000 Other police services 25,300 29,000 40,400 11,400 Total Police Services 429,600 385,500 577,400 191,900 B-2 REVENUES BY MAJOR CATEGORY AND SOURCE GENERAL FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Fire Services Cal Poly fire services 250,000 250,000 250,000 Medical emergency recovery 158,300 158,300 159,700 1,400 Fire safety/haz mat permits 133,400 136,000 136,000 Multi-dwelling unit inspections 188,800 188,300 188,300 CUPA fees 66,500 96,600 96,600 Other fire services 70,000 67,200 114,700 47,500 Total Fire Services 867,000 896,400 945,300 48,900 Development Review Planning & zoning fees 429,600 405,000 443,800 38,800 Construction plan check & inspections 829,000 765,000 760,000 (5,000) Infrastructure plan check & inspections 283,500 350,000 305,500 (44,500) Encroachment permits 130,700 120,000 135,000 15,000 Fire plan check & inspections 103,700 125,400 125,400 Waterways management plan fees 17,500 7,400 7,400 Total Development Review 1,794,000 1,765,400 1,777,100 11,700 Parks & Recreation Adult athletic fees 136,500 120,000 120,000 Youth athletic fees 35,600 33,000 33,000 Skate park fees 200 Instruction fees 94,900 82,300 82,300 Special event fees 87,000 83,700 83,700 Rental & use fees 179,800 178,700 183,500 4,800 Children services 496,400 601,600 551,600 (50,000) Teens & seniors 2,200 3,400 500 (2,900) Aquatics 235,700 215,700 213,400 (2,300) Other recreation revenues 5,000 5,000 Total Parks & Recreation 1,268,300 1,323,400 1,273,000 (50,400) General Government Business license 232,400 261,100 369,000 107,900 Sales of publications 8,200 20,000 5,000 (15,000) Other service charges 92,100 15,000 15,000 Total General Government 332,700 296,100 389,000 92,900 Total Service Charges 4,691,600 4,666,800 4,961,800 295,000 Other Revenues Insurance refunds 15,700 15,400 15,400 Sale of surplus property 70,300 5,000 5,000 Other revenues 53,600 778,000 797,900 19,900 Total Other Revenues 139,600 778,000 818,300 40,300 Total General Fund $49,265,700 $50,769,700 $51,071,300 $301,600 B-3 REVENUES BY MAJOR CATEGORY AND SOURCE SPECIAL REVENUE FUNDS 2009-10 2010-11 Original Revised Actual Budget Projection Variance Downtown Business Improvement District Fund Investment & Property Revenues Service Charges 208,300 220,800 220,800 Total Downtown Association Fund 208,300 220,800 220,800 Tourism Business Improvement District Fund Investment & Property Revenues 17,800 6,800 6,800 Service Charges 902,500 853,800 905,000 51,200 Tourism BID Fund 920,300 853,800 911,800 58,000 Community Development Block Grant Fund Subventions & Grants 817,000 629,600 1,596,400 966,800 Gas Tax Fund Subventions & Grants 762,400 1,254,300 1,215,600 (38,700) In March 2010,the Legislature passed ABx8 6 and ABx8 9, which contained the provisions for a swap of Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). Transportation Development Act Fund Subventions & Grants 27,800 22,500 22,500 Law Enforcement Grant Fund Investment & Property Revenues 1,300 1,400 1,100 (300) Subventions & Grants Service Charges 3,200 4,400 2,600 (1,800) Total Law Enforcement Grant Fund 4,500 5,800 3,700 (2,100) Public Art Contributions Fund Investment & Property Revenues 12,100 7,000 5,300 (1,700) Service Charges 20,100 5,000 80,000 75,000 Other Revenues 30,400 30,400 Total Public Art Contributions Fund 32,200 12,000 115,700 103,700 Proposition 42 Fund Investment & Property Revenues Subventions and Grants 405,200 Proposition 42 Fund 405,200 In March 2010,the Legislature passed ABx8 6 and ABx8 9, which contained the provisions for a swap of Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). Proposition 1B Fund Investment & Property Revenues Subventions and Grants Proposition 1B Fund Total Special Revenue Funds 3,177,700 2,998,800 4,086,500 1,087,700 B-4 REVENUES BY MAJOR CATEGORY AND SOURCE CAPITAL PROJECT FUNDS 2009-10 2010-11 Original Revised Actual Budget Projection Variance Capital Outlay Fund Subventions & Grants State of California Traffic safety grant SLTPP/STP grant 430,900 430,900 STP/SHA - RRTC 324,400 1,511,700 1,511,700 Safe routes to school 1,053,800 1,053,800 Other state grants 213,600 Federal Government Highway & bridge rehabilitation & replacement (HBRR)1,200 485,700 485,700 Transportation enhancement (TEA)44,100 4,400 4,400 Other federal grants 156,600 1,484,900 1,484,900 Service Charges Zone 9 reimbursements 90,000 240,000 150,000 Other Revenues Contributions 13,100 173,200 173,200 Other Revenue 100,000 Total Capital Outlay Fund 853,000 90,000 5,384,600 5,294,600 Parkland Development Fund Investment & Property Revenues 41,800 37,200 37,200 Subventions & Grants 50,000 50,000 Service Charges Park in-lieu fees 35,200 50,000 50,000 Dwelling unit charge 1,200 200 1,000 800 Other Revenue 323,300 323,300 Total Parkland Development Fund 78,200 460,700 461,500 800 Transportation Impact Fee Fund Investment & Property Revenues 107,500 40,000 40,000 Subventions & Grants 399,900 2,341,300 2,341,300 Service Charges 30,200 150,000 780,000 630,000 Other Revenue 87,200 7,200 7,200 Total Transportation Impact Fee Fund 624,800 190,000 3,168,500 2,978,500 Fleet Replacement Fund Investment & Property Revenues 59,800 50,000 30,000 (20,000) Other Revenues Sale of surplus property 27,500 Total Fleet Replacement Fund 87,300 50,000 30,000 (20,000) B-5 REVENUES BY MAJOR CATEGORY AND SOURCE CAPITAL PROJECT FUNDS 2009-10 2010-11 Original Revised Actual Budget Projection Variance Open Space Protection Fund Investment & Property Revenues 12,700 5,000 1,000 (4,000) Subventions & Grants 314,800 750,000 750,000 Other Revenue 10,500 Total Open Space Protection Fund 338,000 5,000 751,000 746,000 Airport Area Impact Fee Fund Investment & Property Revenues 31,500 24,000 24,000 Service Charges 3,600 Total Airport Area Impact Fee Fund 35,100 24,000 24,000 Affordable Housing Fund Investment & Property Revenues 41,600 40,000 20,000 (20,000) Subventions & Grants 270,000 Service Charges (21,300)350,000 350,000 Total Affordable Housing Fund 290,300 390,000 370,000 (20,000) Los Osos Valley Road Sub-Area Fee Fund Investment & Property Revenues 8,600 2,000 3,800 1,800 Service Charges 11,200 Total Los Osos Valley Road Sub-Area Fee 19,800 2,000 3,800 1,800 Total Capital Project Funds 2,326,500 1,211,700 10,193,400 8,981,700 B-6 REVENUES BY MAJOR CATEGORY AND SOURCE ENTERPRISE FUNDS 2009-10 2010-11 Original Revised Actual Budget Projection Variance Water Fund Investment & Property Revenues 663,500 182,100 229,700 47,600 Subventions & Grants Service Charges 13,755,800 15,520,000 15,147,400 (372,600) Other Revenues 56,300 25,400 30,400 5,000 Total Water Fund 14,475,600 15,727,500 15,407,500 (320,000) Sewer Fund Investment & Property Revenues 411,000 74,500 93,900 19,400 Subventions & Grants Service Charges 13,228,100 13,321,800 13,370,700 48,900 Other Revenues (3,000)11,300 3,000 (8,300) Total Sewer Fund 13,636,100 13,407,600 13,467,600 60,000 Parking Fund Fines & Forfeitures 690,500 676,500 676,500 Investment & Property Revenues 292,200 145,000 145,000 Service Charges 2,815,200 3,184,500 2,827,100 (357,400) Other Revenues (9,600) Total Parking Fund 3,788,300 4,006,000 3,648,600 (357,400) Transit Fund Investment & Property Revenues 5,100 5,000 5,600 600 Subventions & Grants 3,302,500 2,219,000 4,060,900 1,841,900 Service Charges 584,900 603,900 592,700 (11,200) Other Revenues (33,300)4,500 22,500 18,000 Total Transit Fund 3,859,200 2,832,400 4,681,700 1,849,300 Golf Fund Investment & Property Revenues 56,400 59,300 59,300 Service Charges 333,900 364,400 286,800 (77,600) Other Revenues 5,000 Total Golf Fund 395,300 423,700 346,100 (77,600) Whale Rock Commission Investment & Property Revenues 31,100 13,800 13,800 Subventions & Grants Service Charges 1,033,500 1,154,700 1,154,700 Other Revenues 1,400 1,500 1,500 Total Whale Rock Commission Fund 1,066,000 1,170,000 1,170,000 Total Enterprise & Agency Funds $37,220,500 $37,567,200 $38,721,500 $1,154,300 B-7 OPERATING PROGRAMS SUMMARY BY FUND 2010-11 Changes Original Carryovers/ Other Mid-Year Revised Budget Encumbrances Changes Requests Budget General Fund Public Safety 24,612,500$ 74,100$ 181,700$ -$ 24,868,300$ Transportation 3,030,200 99,900 17,700 3,147,800 Leisure, Cultural & Social Services 6,752,100 8,100 9,100 6,769,300 Community Development 5,626,100 106,000 5,732,100 General Government 11,559,900 830,400 (7,300)12,383,000 Total General Fund 51,580,800 1,118,500 201,200 52,900,500 Downtown BID Fund 220,800 220,800 Tourism BID Fund 853,800 106,600 960,400 CDBG Fund 270,400 10,700 281,100 Water Fund 12,073,400 278,100 12,351,500 Sewer Fund 5,981,000 450,100 6,431,100 Parking Fund 1,665,900 35,300 23,900 1,725,100 Transit Fund 2,527,900 90,400 2,618,300 Golf Fund 525,400 525,400 Whale Rock Fund 878,700 33,400 912,100 Total All Funds Combined.76,578,100$ 2,112,400$ 235,800$ -$ 78,926,300$ SUMMARY OF NET BUDGET CHANGES TO-DATE: Revenue or Council/CM General Transfer Approval Date Fund Offsets Total General Fund CUPA reimbusement 12/29/2010 1,300 (1,300) Damage to City property various 24,100 (24,100) Triathlon sponsorship 7/30/2010 4,500 (4,500) SLO night with neighbor program 11/22/2010 2,000 (2,000) Business license residential rental enforcement 12/9/2010 10,800 (10,800) OTS grant - Police assistance to other agencies various 16,400 (16,400) ABC grant various 6,100 (6,100) Tiller truck training 11/9/2010 10,500 (10,500) Assistance to firefighter grant 10/5/2010 53,000 (53,000) Hazmat manager salary and benefits 7/20/2010 9,500 (9,500) Jr. giants contribution 9/8/2010 1,300 (1,300) Memorial bench contribution 9/8/2010 700 (700) Various reimbursements various 1,300 (1,300) JAG grant 7/22/2010 78,900 (78,900) Retirement incentive program 6/9/2010 10,000 (10,000) Accelerate funding - fiscal sustainability task force 6/12/2010 (10,000) 10,000 Accelerate funding - half cent sales tax communications 6/8/2010 (19,200) 19,200 Total $201,200 ($201,200) Community Development Grant Fund Homeless shelter annual contract 7/1/2010 10,700 10,700 Total 10,700 Parking Fund Damage to city property 10/12/2010 300 (300) Palm-Nipomo parking garage design transfer from CIP 7/2/2010 23,600 (23,600) Total 23,900 (23,900) TOTAL $235,800 ($225,100) B-8 CAPITAL IMPROVEMENT PLAN: ALL FUNDS COMBINED SUMMARY OF CHANGES BY FUND Original Encumbrances/ Other Budget Mid-Year Budget Carryovers Changes Adjustments Revised Capital Outlay 2,499,300 14,175,800 (148,600)16,526,500 Parkland Development 1,293,000 405,400 19,900 1,718,300 Fleet Replacement 126,500 221,900 348,400 CDBG 409,200 494,900 443,000 1,347,100 Law Enforcement Block Grant 2,000 2,000 Transportation Impact Fee 253,600 5,699,800 (85,500)5,867,900 Open Space Protection 1,136,500 1,136,500 Public Art Private Sector 218,600 49,000 267,600 Airport Area Impact Fee 375,000 375,000 LOVR Impact Fee 61,400 61,400 Affordable Housing 157,500 (38,000)119,500 Water 3,375,000 5,131,900 (100)8,506,800 Sewer 1,605,400 4,624,000 (15,300)6,214,100 Parking 36,600 2,648,700 (20,000)2,665,300 Transit 67,000 1,393,300 (374,600)1,085,700 Golf 43,400 43,400 Whale Rock 350,000 223,400 573,400 Total $10,015,600 $37,013,500 ($170,200)$46,858,900 B-9 CAPITAL IMPROVEMENT PLAN: ALL FUNDS COMBINED SUMMARY OF NET CIP BUDGET ADJUSTMENTS Council/CAO Revenue Net Approval Date Total Offset Impact Capital Outlay Fund (General Fund) Caltrans paving agreement 11/22/2010 25,000 25,000 Laserfiche 9/21/2010 90,000 90,000 Carryover adjustments various (255,700)(255,700) City hall roof repair 7/26/2010 (1,000)(1,000) Downtown beautification - moved budget to prior year 8/11/2010 (22,300)(22,300) Holcomb Art Donation 7/20/2010 15,400 15,400 Subtotal Capital Outlay Fund (148,600) 25,000 (173,600) Parkland Development Fund Close project 11/22/2010 (37,500)(37,500) Adjust carryover balance 11/8/2010 57,400 Subtotal Parkland Development Fund 19,900 (37,500) CDBG Fund Women's business center 11/30/2010 10,800 10,800 Women's shelter housing rehab 11/30/2010 37,000 37,000 3592/3594 Broad St acquisition 11/30/2010 189,600 189,600 313 South St acquisition 11/30/2010 205,600 205,600 Subtotal CDBG Fund 443,000 443,000 Transportation Impact Fee Adjust carryover balance 11/8/2010 (8,000)(8,000) LOVR interchange 8/13/2010 (77,500)(77,500) Subtotal Transportation Impact Fee Fund (85,500)(85,500) Public Art in Lieu Fund Holcomb donation to Community Garden public art project 15,000 15,000 Box Art 34,000 34,000 Subtotal Public Art in Lieu Fund 49,000 49,000 Affordable Housing Fund Close 3301 Rockview project (68,000)(68,000) SLO County Housing Trust Fund 30,000 30,000 Subtotal Affordable Housing Fund (38,000)30,000 Water Fund Adjust carryover 11/8/2010 (14,500)(14,500) Laserfiche 10/28/2010 14,400 14,400 Subtotal Water Fund (100)(100) Sewer Fund Adjust carryover 11/8/2010 (24,900)(24,900) Laserfiche 10/28/2010 9,600 9,600 Subtotal Sewer Fund (15,300)(15,300) Parking Fund Laserfiche 10/28/2010 3,600 3,600 Palm-Nipomo garage design transfer to operating 7/6/2010 (23,600)(23,600) Subtotal Parking Fund (20,000)(20,000) Transit Fund Document Management System 2,400 2,400 Defer bus replacement from approved Program of Projects (377,000)(377,000) Subtotal Transit Fund (374,600)(374,600) Total Adjustments ($170,200) $25,000 ($184,600) B-10 INTERFUND TRANSACTIONS OPERATING TRANSFERS 2009-10 2010-11 Original Actual Budget Revised Variance General Fund Operating Transfers In Gas Tax Fund 762,400 1,254,300 1,215,600 (38,700) TDA Fund 27,800 22,500 22,500 Tourism BID Fund 32,000 32,000 Proposition 42 Fund 405,200 Total operating transfers in 1,195,400 1,308,800 1,270,100 (38,700) Operating Transfers Out Transportation Impact Fee Fund (74,000) Community Development Block Grant (21,800)(50,000) (31,900) 18,100 Capital Outlay Fund (3,542,500) (2,409,300) (2,499,300) (90,000) Open Space Protection Fund (260,400) Fleet Replacement Fund (79,100) Debt Service Fund (2,908,700) (2,670,900) (2,670,900) Golf Fund (301,500) (277,100) (356,400) (79,300) Total operating transfers out (7,188,000) (5,407,300) (5,558,500) (151,200) Total Operating Transfers (5,992,600) (4,098,500) (4,288,400) (189,900) Gas Tax Fund Operating Transfer Out General Fund (762,400) (1,254,300) (1,215,600) 38,700 Transportation Development Act Fund Operating Transfer Out General Fund (27,800)(22,500) (22,500) Community Development Block Grant Operating Transfer In General Fund 21,800 50,000 31,900 (18,100) Proposition 42 Fund Operating Transfer Out General Fund (405,200) Tourism Business Improvement District Fund Operating Transfer Out General Fund (32,000) (32,000) Capital Outlay Fund Operating Transfer In General Fund 3,542,500 2,409,300 2,499,300 90,000 Total Operating Transfers In 3,542,500 2,409,300 2,499,300 90,000 B-11 INTERFUND TRANSACTIONS OPERATING TRANSFERS 2009-10 2010-11 Original Actual Budget Revised Variance Open Space Protection Fund Operating Transfer In General Fund 260,400 Fleet Replacement Fund Operating Transfers In General Fund 79,100 Debt Service Fund Operating Transfer In General Fund 2,908,700 2,670,900 2,670,900 Transportation Impact Fee Fund Operating Transfer In General Fund 74,000 Golf Course Fund Operating Transfer In General fund 301,500 277,100 356,400 79,300 NET OPERATING TRANSFERS -$ -$ -$ -$ B-12 INTERFUND TRANSACTIONS REIMBURSEMENT TRANSFERS 2009-10 2010-11 Original Actual Budget Revised Variance General Fund (4,264,000) (4,349,400) (4,349,400) Enterprise and Agency Funds Water 1,669,300 1,702,700 1,702,700 Sewer 1,438,400 1,467,200 1,467,200 Parking 538,500 549,300 549,300 Transit 350,200 357,200 357,200 Golf 168,300 171,700 171,700 Whale Rock Commission 99,300 101,300 101,300 Total Enterprise and Agency Funds 4,264,000 4,349,400 4,349,400 NET REIMBURSEMENT TRANSFERS -$ -$ -$ -$ B-13 CHANGES IN FINANCIAL POSITION ALL FUNDS COMBINED 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Tax Revenues 42,093,000 43,176,200 43,582,600 406,400 Fines and Forfeitures 892,200 893,600 871,500 (22,100) Investment and Property Revenues 2,667,700 1,473,100 1,522,700 49,600 Subventions and Grants 8,274,500 5,306,400 15,701,700 10,395,300 Service Charges Governmental Funds 5,885,800 6,391,000 7,591,200 1,200,200 Enterprise Funds 30,712,500 33,005,900 32,227,700 (778,200) Trust and Agency Revenues 1,066,000 1,170,000 1,170,000 Other Revenues 398,700 1,131,200 1,405,300 274,100 Total Revenues 91,990,400 92,547,400 104,072,700 11,525,300 Expenditures Operating Programs Public Safety 24,203,800 24,612,500 24,868,300 (255,800) Public Utilities 12,384,300 18,933,100 19,694,700 (761,600) Transportation 7,069,800 7,224,000 7,529,200 (305,200) Leisure, Cultural, & Social Services 6,785,200 7,277,500 7,294,700 (17,200) Community Development 6,690,200 6,971,100 7,194,400 (223,300) General Government 11,517,500 11,559,900 12,383,000 (823,100) Total Operating Programs 68,650,800 76,578,100 78,964,300 (2,386,200) Capital Projects 22,649,700 10,015,600 46,859,000 (36,843,400) Debt Service 9,999,900 10,085,100 10,118,000 (32,900) Total Expenditures 101,300,400 96,678,800 135,941,300 (39,262,500) Other Sources (Uses) Operating Transfers In 4,835,500 6,716,100 6,828,600 112,500 Operating Transfers Out (8,383,400) (6,716,100) (6,828,600) (112,500) Proceeds from Debt Financings 3,542,500 Potential MOA Adjustments (563,600) (75,000) 488,600 Other Sources (Uses)(202,000)(411,600) (411,600) Expenditure Savings 1,124,000 1,436,100 312,100 Total Other Sources (Uses)(207,400)148,800 949,500 (800,700) Revenues and Other Sources Over (under) Expenditures and Other Uses (9,517,400) (3,982,600) (30,919,100) (26,936,500) Fund Balance/Working Capital Beginning of Year 75,318,900 35,569,500 65,801,500 30,232,000 Fund Balance/Working Capital End of Year Reserved for Debt Service 2,285,700 1,939,700 1,939,700 Unreserved 63,515,800 29,647,200 32,942,700 3,295,500 Total Fund Balance $65,801,500 $31,586,900 $34,882,400 $3,295,500 B-14 CHANGES IN FINANCIAL POSITION ALL GOVERNMENTAL FUNDS COMBINED 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Tax Revenues 42,093,000 43,176,200 43,582,600 406,400 Fines and Forfeitures 201,700 217,100 195,000 (22,100) Investment and Property Revenues 1,239,500 1,007,200 989,200 (18,000) Subventions and Grants 4,972,000 3,087,400 11,640,800 8,553,400 Service Charges 5,885,800 6,391,000 7,591,200 1,200,200 Other Revenues 377,900 1,101,300 1,352,400 251,100 Total Revenues 54,769,900 54,980,200 65,351,200 10,371,000 Expenditures Operating Programs Public Safety 24,203,800 24,612,500 24,868,300 (255,800) Transportation 3,019,700 3,030,200 3,147,800 (117,600) Leisure, Cultural, & Social Services 6,279,900 6,752,100 6,769,300 (17,200) Community Development 6,690,200 6,971,100 7,194,400 (116,700) General Government 13,246,100 11,559,900 12,383,000 (823,100) Total Operating Programs 53,439,700 52,925,800 54,362,800 (1,330,400) Reimbursed Expenditures (5,992,600) (4,349,400) (4,349,400) Total Operating Expenditures 47,447,100 48,576,400 50,013,400 (1,437,000) Capital Improvement Plan Projects 17,100,600 4,581,600 27,770,300 (22,859,700) Debt Service 2,908,700 3,016,900 3,016,900 Total Expenditures 67,456,400 56,174,900 80,800,600 (24,625,700) Other Sources (Uses) Operating Transfers In 4,539,400 6,439,000 6,472,200 33,200 Operating Transfers Out (8,383,400) (6,716,100) (6,828,600) (112,500) Proceeds from Debt Financings 3,542,500 Potential MOA Adjustments (484,900)484,900 Other Sources (Uses) Expenditure Savings 1,057,400 1,369,500 312,100 Total Other Sources (Uses)(301,500)295,400 1,013,100 717,700 Revenues and Other Sources Over (under) Expenditures and Other Uses (12,988,000)(899,300) (14,436,300) (13,537,000) Fund Balance, Beginning of Year 44,405,900 16,464,300 31,417,900 14,953,600 Fund Balance, End of Year Reserved for Debt Service 2,285,700 1,939,700 1,939,700 Unreserved 29,132,200 13,625,300 15,041,900 1,416,600 Total Fund Balance $31,417,900 $15,565,000 $16,981,600 $1,416,600 B-15 CHANGES IN FINANCIAL POSITION ALL ENTERPRISE AND AGENCY FUNDS COMBINED 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Fines and Forfeitures 690,500 676,500 676,500 Investment and Property Revenues 1,428,200 465,900 533,500 67,600 Subventions and Grants 3,302,500 2,219,000 4,060,900 1,841,900 Service Charges 30,712,500 33,005,900 32,227,700 (778,200) Other Revenues 20,800 29,900 52,900 23,000 Trust and Agency Revenues 1,066,000 1,170,000 1,170,000 Total Revenues 37,220,500 37,567,200 38,721,500 1,154,300 Expenditures Operating Programs Public Utilities 12,384,300 18,933,100 19,694,700 (761,600) Transportation 4,050,100 4,193,800 4,381,400 (187,600) Leisure, Cultural, & Social Services 505,300 525,400 525,400 General Government 4,264,000 4,349,400 4,349,400 Total Operating Programs 21,203,700 28,001,700 28,950,900 (949,200) Capital Projects 5,549,100 5,434,000 19,088,700 (13,654,700) Debt Service 7,091,200 7,068,200 7,101,100 (32,900) Total Expenditures 33,844,000 40,503,900 55,140,700 (14,636,800) Other Sources (Uses) Operating Transfers In 296,100 277,100 356,400 79,300 Proceeds from Debt Financings Expenditure Savings 66,600 66,600 Other Sources (Uses)(202,000)(411,600) (411,600) Potential MOA Adjustments (78,700) (75,000)3,700 Total Other Sources (Uses)94,100 (146,600) (63,600) 83,000 Revenues and Other Sources Over (under) Expenditures and Other Uses 3,470,600 (3,083,300) (16,482,800) (13,399,500) Working Capital, Beginning of Year 30,913,000 19,105,200 34,383,600 15,278,400 Fund Balance, End of Year $34,383,600 $16,021,900 $17,900,800 $1,878,900 B-16 CHANGES IN FINANCIAL POSITION GENERAL FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Tax Revenues 42,093,000 43,176,200 43,582,600 406,400 Fines and Forfeitures 201,700 217,100 195,000 (22,100) Investment and Property Revenues 904,800 800,600 820,000 19,400 Subventions and Grants 1,235,000 1,131,000 693,600 (437,400) Service Charges 4,691,600 4,666,800 4,961,800 295,000 Other Revenues 139,600 778,000 818,300 40,300 Total Revenues 49,265,700 50,769,700 51,071,300 301,600 Expenditures Public Safety 24,203,800 24,612,500 24,868,300 (255,800) Transportation 3,019,700 3,030,200 3,147,800 (117,600) Leisure, Cultural, and Social Services 6,279,900 6,752,100 6,769,300 (17,200) Community Development 5,394,000 5,626,100 5,732,100 (106,000) General Government 13,246,100 11,559,900 12,383,000 (823,100) Total Program Expenditures 52,143,500 51,580,800 52,900,500 (1,319,700) Reimbursed Expenditures (5,992,600) (4,349,400) (4,349,400) Total Expenditures 46,150,900 47,231,400 48,551,100 (1,319,700) Other Sources (Uses) Transfers In 1,195,400 1,308,800 1,270,100 (38,700) Transfers Out (7,188,000) (5,407,300) (5,558,500) (151,200) Proceeds from Debt Financings Expenditure Savings 1,057,400 1,369,500 312,100 Potential MOA Adjustments (484,900)484,900 Total Other Sources (Uses)(5,992,600) (3,526,000) (2,918,900) 607,100 Revenues and Other Sources Over (Under) Expenditures and Other Uses (2,877,800)12,300 (398,700) (411,000) Fund Balance, Beginning of Year 13,991,900 9,372,600 11,114,100 1,741,500 Fund Balance, End of Year $11,114,100 $9,384,900 $10,715,400 $1,330,500 Policy Reserve (20%)$9,710,200 Amount Over (Under) Policy Reserve $1,005,200 B-17 CHANGES IN FINANCIAL POSITION DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues Service Charges 208,300 220,800 220,800 Total Revenues 208,300 220,800 220,800 Operating Expenditures Community Development 208,300 220,800 220,800 Total Expenditures 208,300 220,800 220,800 Other Sources (Uses) Operating Transfers In Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year 1,100 1,100 1,100 Fund Balance, End of Year $1,100 $1,100 $1,100 B-18 CHANGES IN FINANCIAL POSITION TOURISM BUSINESS IMPROVEMENT DISTRICT FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 17,800 6,800 6,800 Service Charges 902,500 853,800 905,000 51,200 Total Revenues 920,300 853,800 911,800 58,000 Operating Expenditures Community Development 828,100 853,800 960,400 (106,600) Total Expenditures 828,100 853,800 960,400 106,600 Other Sources (Uses) Operating Transfers Out (32,000) (32,000) Revenues and Other Sources Over (Under) Expenditures and Other Uses 92,200 (32,000) (80,600) (48,600) Fund Balance, Beginning of Year 523,800 265,800 616,000 350,200 Fund Balance, End of Year $616,000 $233,800 $535,400 $301,600 B-19 CHANGES IN FINANCIAL POSITION GAS TAX 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Subventions and Grants Gasoline Tax 762,400 1,254,300 1,215,600 (38,700) Total Revenues 762,400 1,254,300 1,215,600 (38,700) Other Sources (Uses) Operating Transfers Out (762,400) (1,254,300) (1,215,600) 38,700 Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year In March 2010,the Legislature passed ABx8 6 and ABx8 9, which contained the provisions for a swap of Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). B-20 CHANGES IN FINANCIAL POSITION TRANSPORTATION DEVELOPMENT ACT FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Subventions and Grants TDA Revenues 27,800 22,500 22,500 Total Revenues 27,800 22,500 22,500 Other Sources (Uses) Operating Transfers Out (27,800)(22,500) (22,500) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year B-21 CHANGES IN FINANCIAL POSITION COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Subventions and Grants CDBG Allocation 817,000 629,600 1,596,400 966,800 Total Revenues 817,000 629,600 1,596,400 966,800 Expenditures Operating Programs Community Development 259,800 270,400 281,100 (10,700) General Government Total Operating Programs 259,800 270,400 281,100 (10,700) Capital Improvement Plan Projects 579,000 409,200 1,347,200 (938,000) Debt Service Total Expenditures 838,800 679,600 1,628,300 (948,700) Other Sources (Uses) Operating Transfers In 21,800 50,000 31,900 (18,100) Total Other Sources (Uses)21,800 50,000 31,900 (18,100) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year B-22 CHANGES IN FINANCIAL POSITION LAW ENFORCEMENT GRANT FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenue 1,300 1,400 1,100 (300) Subventions and Grants Federal Grants State Grants Service Charges 3,200 4,400 2,600 (1,800) Total Revenues 4,500 5,800 3,700 (2,100) Expenditures Operating Programs Public Safety Total Operating Programs Capital Improvement Plan Projects 13,000 2,000 (2,000) Total Expenditures 13,000 2,000 (2,000) Other Sources (Uses) Operating Transfers In Operating Transfers Out Total Other Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses (8,500)5,800 1,700 (4,100) Fund Balance, Beginning of Year 47,200 37,400 38,700 1,300 Fund Balance, End of Year $38,700 $43,200 $40,400 ($2,800) B-23 CHANGES IN FINANCIAL POSITION PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 12,100 7,000 5,300 (1,700) Service Charges In-lieu fees 20,100 5,000 80,000 75,000 Other Revenues 30,400 30,400 Total Revenues 32,200 12,000 115,700 103,700 Expenditures Operating Programs Leisure, Cultural & Social Services Capital Improvement Plan Projects 59,700 267,600 267,600 Total Expenditures 59,700 267,600 267,600 Other Sources (Uses) Operating Transfer In Operating Transfer Out Total Other Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses (27,500)12,000 (151,900) (163,900) Fund Balance, Beginning of Year 415,800 255,400 388,300 132,900 Fund Balance, End of Year $388,300 $267,400 $236,400 ($31,000) B-24 CHANGES IN FINANCIAL POSITION PROPOSITION 42 FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues Subventions and Grants State Grants 405,200 Total Revenues 405,200 Expenditures Operating Programs Transportation Capital Improvement Plan Projects Total Expenditures Other Sources (Uses) Operating Transfer In Operating Transfer Out ($405,200) Total Other Sources (Uses)($405,200) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year In March 2010,the Legislature passed ABx8 6 and ABx8 9, which contained the provisions for a swap of Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). B-25 CHANGES IN FINANCIAL POSITION CAPITAL OUTLAY FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Subventions and Grants 739,900 4,971,400 4,971,400 Service Charges 90,000 240,000 150,000 Other Revenues 113,100 173,200 173,200 Total Revenues 853,000 90,000 5,384,600 5,294,600 Expenditures Capital Improvement Plan Projects 10,285,000 2,499,300 16,526,500 (14,027,200) Total Expenditures 10,285,000 2,499,300 16,526,500 (14,027,200) Other Sources (Uses) Operating Transfers In 2,409,300 2,499,300 90,000 Operating Transfers Out Proceeds from Debt Financing 3,542,500 Total Other Sources (Uses)3,542,500 2,409,300 2,499,300 90,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses (5,889,500)(8,642,600) (8,642,600) Fund Balance, Beginning of Year 14,795,400 8,905,900 8,905,900 Fund Balance, End of Year $8,905,900 -$ 263,300$ 263,300$ B-26 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenue 41,800 37,200 37,200 Subventions and Grants 50,000 50,000 Service Charges Park In-Lieu Fees 35,200 50,000 50,000 Dwelling Unit Fees 1,200 200 1,000 800 Other Revenue 323,300 323,300 Total Revenues 78,200 460,700 461,500 800 Expenditures Capital Improvement Plan Projects 67,000 1,293,000 1,718,300 (425,300) Total Expenditures 67,000 1,293,000 1,718,300 (425,300) Revenues and Other Sources Over (Under) Expenditures and Other Uses 11,200 (832,300) (1,256,800) (424,500) Fund Balance, Beginning of Year 1,319,900 897,900 1,331,100 433,200 Fund Balance, End of Year $1,331,100 $65,600 $74,300 $8,700 B-27 CHANGES IN FINANCIAL POSITION TRANSPORTATION IMPACT FEE FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenue 107,500 40,000 40,000 Subventions and Grants 399,900 2,341,300 2,341,300 Service Charges 30,200 150,000 780,000 630,000 Other Revenue 87,200 7,200 7,200 Total Revenues 624,800 190,000 3,168,500 2,978,500 Expenditures Capital Improvement Plan Projects 893,300 253,600 5,867,900 (5,614,300) Total Expenditures 893,300 253,600 5,867,900 (5,614,300) Other Sources (Uses) Operating Transfers In 74,000 Operating Transfers Out Total Other Sources (Uses)$74,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses (194,500)(63,600) (2,699,400) (2,635,800) Fund Balance, Beginning of Year 3,592,800 97,200 3,398,300 3,301,100 Fund Balance, End of Year $3,398,300 33,600$ 698,900$ 665,300$ B-28 CHANGES IN FINANCIAL POSITION OPEN SPACE PROTECTION FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenue 12,700 5,000 1,000 (4,000) Subventions and Grants 314,800 750,000 750,000 Service Charges Other Revenue 10,500 Total Revenues 338,000 5,000 751,000 746,000 Expenditures Capital Improvement Plan Projects 370,500 1,136,500 (1,136,500) Total Expenditures 370,500 1,136,500 (1,136,500) Other Sources (Uses) Operating Transfers In 260,400 Operating Transfers Out Total Other Sources (Uses)$260,400 Revenues and Other Sources Over (Under) Expenditures and Other Uses 227,900 5,000 (385,500) (390,500) Fund Balance, Beginning of Year 261,500 113,800 489,400 375,600 Fund Balance, End of Year $489,400 $118,800 $103,900 ($14,900) B-29 CHANGES IN FINANCIAL POSITION AIRPORT AREA IMPACT FEE FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 31,500 24,000 24,000 Service Charges 3,600 Total Revenues 35,100 24,000 24,000 Expenditures Capital Improvement Plan Projects 375,000 (375,000) Other Sources (Uses) Operating Transfers Out Revenues and Other Sources Over (Under) Expenditures and Other Uses 35,100 24,000 (351,000) (375,000) Fund Balance, Beginning of Year 993,700 643,300 1,028,800 385,500 Fund Balance, End of Year $1,028,800 $667,300 $677,800 $10,500 B-30 CHANGES IN FINANCIAL POSITION AFFORDABLE HOUSING FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 41,600 40,000 20,000 (20,000) Subventions and Grants 270,000 Service Charges (21,300)350,000 350,000 Total Revenues 290,300 390,000 370,000 (20,000) Expenditures Capital Improvement Plan Projects 3,407,600 119,500 (119,500) Other Sources (Uses) Operating Transfers in Revenues and Other Sources Over (Under) Expenditures and Other Uses (3,117,300)390,000 250,500 (139,500) Fund Balance, Beginning of Year 3,785,000 604,800 667,700 62,900 Fund Balance, End of Year $667,700 $994,800 $918,200 ($76,600) B-31 CHANGES IN FINANCIAL POSITION FLEET REPLACEMENT FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 59,800 50,000 30,000 (20,000) Other Revenues Sale of Surplus Property 27,500 Total Revenues 87,300 50,000 30,000 (20,000) Expenditures Capital Improvement Plan Projects 1,406,500 126,500 348,400 (221,900) Total Expenditures 1,406,500 126,500 348,400 (221,900) Other Sources (Uses) Proceeds from Debt Financing 1,044,000 (1,044,000) Operating Transfers In General Fund 79,100 Total Other Sources (Uses) 79,100 1,044,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses (1,240,100) (76,500) 725,600 (241,900) Fund Balance, Beginning of Year 2,223,900 1,784,200 983,800 (800,400) Fund Balance, End of Year $983,800 $1,707,700 $1,709,400 $1,700 B-32 CHANGES IN FINANCIAL POSITION LOS OSOS VALLEY ROAD SUB-AREA FEE FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 8,600 2,000 3,800 1,800 Service Charges 11,200 Total Revenues 19,800 2,000 3,800 1,800 Expenditures Capital Improvement Plan Projects 19,000 61,400 (61,400) Other Sources (Uses) Operating Transfers In Revenues and Other Sources Over (Under) Expenditures and Other Uses 800 2,000 (57,600) (59,600) Fund Balance, Beginning of Year 168,200 106,200 169,000 62,800 Fund Balance, End of Year $169,000 $108,200 $111,400 $3,200 B-33 CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Expenditures Debt Service 2001 Refunded Revenue Bonds 797,800 799,800 799,800 2004 Refunding Revenue Bonds 293,200 295,000 295,000 2005 Refunding Revenue Bonds 463,100 469,900 469,900 2006 Lease Revenue Bonds 459,600 458,400 458,400 2009 Lease Revenue Bonds 837,600 839,400 839,400 2010 Fire Truck Financing 97,000 97,000 Energy Conservation Lease Purchase 57,400 57,400 57,400 Total Expenditures 2,908,700 3,016,900 3,016,900 Other Sources (Uses) Proceeds from debt financing Operating Transfers In 2,908,700 2,670,900 2,670,900 Total Other Sources (Uses)2,908,700 2,670,900 2,670,900 Revenues and Other Sources Over (Under) Expenditures and Other Uses (346,000) (346,000) Fund Balance, Beginning of Year Reserved for Debt Service 2,285,700 2,285,700 2,285,700 Unreserved Fund Balance, End of Year $2,285,700 $1,939,700 $1,939,700 B-34 CHANGES IN FINANCIAL POSITION WATER FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 663,500 182,100 229,700 47,600 Subventions and Grants Service Charges Water Sales Water Service Charges 12,037,400 14,006,900 13,334,300 (672,600) Sales to Cal Poly 939,600 1,030,100 1,030,100 Development Impact Fees 448,200 267,400 567,400 300,000 Other Service Charges 330,600 215,600 215,600 Other Revenues 56,300 25,400 30,400 5,000 Total Revenues 14,475,600 15,727,500 15,407,500 (320,000) Expenditures Operating Programs Public Utilities 5,934,200 12,073,400 12,351,500 (278,100) General Government 1,669,300 1,702,700 1,702,700 Total Operating Programs 7,603,500 13,776,100 14,054,200 (278,100) Capital Improvement Plan Projects 2,618,100 3,375,000 8,506,800 (5,131,800) Debt Service 2,377,600 2,341,500 2,341,500 Total Expenditures 12,599,200 19,492,600 24,902,500 (5,409,900) Other Sources (Uses) Other Sources (Uses) (119,700) (45,000) (45,000) Expenditure Savings 66,600 66,600 Potential MOA Adjustments Total Other Sources (Uses) (119,700) 21,600 21,600 Revenues and Other Sources Over (under) Expenditures and Other Uses 1,756,700 (3,743,500) (9,473,400) (5,729,900) Working Capital, Beginning of Year 13,897,100 9,675,600 15,653,800 5,978,200 Working Capital, End of Year $15,653,800 $5,932,100 $6,180,400 $248,300 B-35 CHANGES IN FINANCIAL POSITION SEWER FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 411,000 74,500 93,900 19,400 Subventions and Grants Service Charges Customer Sales Sewer Service Charges 12,171,900 12,350,500 12,350,500 Sales to Cal Poly 779,300 751,400 751,400 Development Impact Fees 98,700 70,500 119,400 48,900 Other Service Charges 178,200 149,400 149,400 Other Revenues (3,000)11,300 3,000 (8,300) Total Revenues 13,636,100 13,407,600 13,467,600 60,000 Expenditures Operating Programs Public Utilities 5,606,400 5,981,000 6,431,100 (450,100) General Government 1,438,400 1,467,200 1,467,200 Total Operating Programs 7,044,800 7,448,200 7,898,300 (450,100) Capital Improvement Plan Projects 1,803,400 1,605,400 6,214,100 (4,608,700) Debt Service 3,191,600 3,243,700 3,243,700 Total Expenditures 12,039,800 12,297,300 17,356,100 (5,058,800) Other Sources (Uses) Proceeds from Debt Financing Potential MOA Adjustments (35,500) (35,500) Other Sources (Uses) (132,800) (366,600) (366,600) Total Other Sources (Uses) (132,800) (402,100) (402,100) Revenues and Other Sources Over (Under) Expenditures and Other Uses 1,463,500 708,200 (4,290,600) (4,998,800) Working Capital, Beginning of Year 8,165,000 3,718,300 9,628,500 5,910,200 Working Capital, End of Year $9,628,500 $4,426,500 $5,337,900 $911,400 B-36 CHANGES IN FINANCIAL POSITION PARKING FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 292,200 145,000 145,000 Fines and Forfeitures 690,500 676,500 676,500 Service Charges Parking Meter Collections Lots 392,100 406,400 398,600 (7,800) Streets 1,153,200 1,264,400 1,153,500 (110,900) Parking Structure Collections 702,400 948,400 713,200 (235,200) Long-Term Parking Revenues 349,900 352,200 348,700 (3,500) Lease Revenues 204,800 199,700 199,700 Parking In-Lieu Fees 12,800 13,300 13,300 Other Service Charges 100 100 Other Revenues (9,600) Total Revenues 3,788,300 4,006,000 3,648,600 (357,400) Expenditures Operating Programs Transportation 1,603,900 1,665,900 1,725,100 (59,200) General Government 538,500 549,300 549,300 Total Operating Programs 2,142,400 2,215,200 2,274,400 (59,200) Capital Improvement Plan Projects 100,200 36,600 2,665,300 (2,628,700) Debt Service 1,522,000 1,483,000 1,515,900 (32,900) Total Expenditures 3,764,600 3,734,800 6,455,600 (2,720,800) Other Sources (Uses) Proceeds from Debt Financing Other Sources (Uses)17,200 Potential MOA Adjustments (23,100) (23,100) Total Other Sources (Uses)17,200 (23,100) (23,100) Revenues and Other Sources Over (Under) Expenditures and Other Uses 40,900 248,100 (2,830,100) (3,078,200) Working Capital, Beginning of Year 7,250,900 4,438,100 7,291,800 2,853,700 Working Capital, End of Year:$7,291,800 $4,686,200 $4,461,700 ($224,500) B-37 CHANGES IN FINANCIAL POSITION TRANSIT FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 5,100 5,000 5,600 600 Subventions and Grants TDA Revenues 992,400 930,100 1,046,200 116,100 Other Grants 979,100 67,000 851,300 784,300 FTA Grants 1,331,000 1,221,900 2,163,400 941,500 Service Charges 584,900 603,900 592,700 (11,200) Other Revenues (33,300)4,500 22,500 18,000 Total Revenues 3,859,200 2,832,400 4,681,700 1,849,300 Expenditures Operating Programs Transportation 2,446,200 2,527,900 2,656,300 (128,400) General Government 350,200 357,200 357,200 Total Operating Programs 2,796,400 2,885,100 3,013,500 (128,400) Capital Improvement Plan Projects 986,500 67,000 1,085,700 (1,018,700) Total Expenditures 3,782,900 2,952,100 4,099,200 (1,147,100) Other Sources (Uses) Expenditure Savings Other Sources 33,300 Potential MOA Adjustments (7,500) (7,500) Total Other Sources (Uses)33,300 (7,500) (7,500) Revenues and Other Sources Over (Under) Expenditures and Other Uses 109,600 (127,200) 575,000 (702,200) Working Capital, Beginning of Year 729,000 585,600 838,600 253,000 Working Capital, End of Year $838,600 $458,400 $1,413,600 $955,200 B-38 CHANGES IN FINANCIAL POSITION GOLF FUND 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 56,400 59,300 59,300 Service Charges Retail Sales 24,300 23,000 23,750 750 Green Fees 255,300 296,000 220,150 (75,850) Other Fees 48,900 45,400 42,900 (2,500) Other Revenues 10,400 Total Revenues 395,300 423,700 346,100 (77,600) Expenditures Operating Programs Leisure, Cultural & Social Services 505,300 525,400 525,400 General Government 168,300 171,700 171,700 Total Operating Programs 673,600 697,100 697,100 Capital Improvement Plan Projects 40,900 43,400 (43,400) Total Expenditures 714,500 697,100 740,500 (43,400) Other Sources (Uses) Operating Transfers In 296,100 277,100 356,400 79,300 Other Sources Expenditure Savings Potential MOA Adjustments (3,700)3,700 Total Other Sources (Uses)296,100 273,400 356,400 83,000 Revenues and Other Sources Over (under) Expenditures and Other Uses (23,100)(38,000) (38,000) Working Capital, Beginning of Year 61,100 38,000 38,000 Working Capital, End of Year $38,000 -$ -$ -$ B-39 CHANGES IN FINANCIAL POSITION WHALE ROCK COMMISSION 2009-10 2010-11 Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 31,100 13,800 13,800 Subventions & Grants Service Charges Member Agency Contributions 660,900 766,100 766,100 Water Distribution Charges 372,600 388,600 388,600 Other Revenues 800 Other Revenues 600 1,500 1,500 Total Revenues 1,066,000 1,170,000 1,170,000 Expenditures Operating Programs Public Utilities 843,700 878,700 912,100 (33,400) General Government 99,300 101,300 101,300 Total Operating Programs 943,000 980,000 1,013,400 (33,400) Capital Improvement Plan Projects 350,000 573,400 (223,400) Total Expenditures 943,000 1,330,000 1,586,800 (256,800) Other Sources (Uses) Potential MOA Adjustments (8,900) (8,900) Total Other Sources (Uses)(8,900) (8,900) Revenues and Other Sources Over (under) Expenditures and Other Uses 123,000 (168,900) (425,700) (256,800) Working Capital, Beginning of Year 809,900 687,600 932,900 245,300 Working Capital, End of Year $932,900 $518,700 $507,200 ($11,500) B-40 Section C MID-YEAR BUDGET REQUESTS SUMMARY OF 2010-11 MID-YEAR BUDGET REQUESTS Page No.2010-11 OPERATING PROGRAMS „There are no new operating program requests. Total Operating Programs 0 CAPITAL IMPROVEMENT PLAN (CIP) „There are no new CIP requests. Total CIP Projects 0 TOTAL -$ FUNDING SOURCES 0 0 -$ C-1 Section D RECENT FINANCIAL AND REVENUE REPORTS San Luis Obispo City of Quarterly Financial Report Second Quarter of 2010-11 January 15, 2011 OVERVIEW This report summarizes the City’s overall financial position for the fiscal year through December 2010. Except as noted below, revenues and operating expenditures are generally on target based on past trends for the second quarter. We will provide the Council with a detailed analysis of the City’s financial condition as part of the mid-year budget review. Adjusted Budgets and Revenue Estimates. The revenue projections and budgets include adjustments for encumbrances, carryovers and any supplemental appropriations made by the Council as of December 31, 2010. Mid-Year Budget Review. The City’s overall revenue and expenditure picture will be discussed in greater detail during the Mid-Year Budget Review scheduled for Council consideration on March 1, 2011. And updated General Fund Fiscal Forecast will also be presented at that time. GENERAL FUND General Fund Financial Condition. With 50% of the year complete, General Fund revenues are at 48% of projections and expenditures are at 52%. This is a normal pattern for this time of year, as more fully explained below: General Fund Balance Budget YTD Actual Percent Revenues 50,932,200 24,561,300 48% Expenditures 47,927,000 24,951,100 52% Other Sources (Uses) (2,981,800) (2,220,500) 74% Balance, Start of Year 11,114,100 11,114,100 Balance, Year-to-Date 11,137,500 8,503,800 - - Top Ten Revenues. Our top ten revenues account for about 90% of total General Fund revenues. By focusing on these, we can get an excellent understanding of our revenue position. Overall, these key revenues are performing as projected based on revised estimates, payment schedules and past trends for the second quarter. Any significant variances are noted below. Top Ten Revenues Budget YTD Actual % Received Sales tax - general 11,327,100 4,465,000 39% Sales tax - measure Y 5,293,900 2,792,100 53% Property tax 9,323,100 5,104,200 55% Property tax in lieu of VLF 3,454,700 0% Transient occupancy tax 4,295,800 2,728,400 64% Utility users tax 4,612,200 2,470,300 54% Business tax 1,871,300 1,774,700 95% Franchise fees 2,567,400 1,514,300 59% Development review fees 1,765,400 917,100 52% Recreation fees 1,324,900 532,900 40% Total 45,835,800 22,299,000 49% Sales Tax. Results to-date are closer to budget estimates than it appears. Due to the “triple flip,” we only receive 75% of our base revenues from State allocations: the remaining 25% is remitted to us from the County in January and June. We are beginning to see economic recovery in this area. As our top revenue source, we will continue to monitor this closely. Property Tax. The first major apportionment of 2010-11 taxes occurred in December 2010 and thus far collections are below estimates. We will revise our revenue estimate with the Mid-Year Budget Review. Transient Occupancy Tax. As noted in the TOT report for November 2010, year-to-date revenues are 8.5% higher for year-to-date than they were one year ago. We are currently above our projected 2% increase, but remain cautiously optimistic. Property Tax In-Lieu of VLF. We will not receive any revenues from this revenue source until January 2011. Business Tax. The renewal cycle for business tax occurs during the first quarter of the fiscal year and as such, most of the revenues for the year have been collected. Franchise Fees. We will not receive the largest components of our franchise fee revenues—payments from PG&E and Southern California Gas Company—until April 2011; however, franchise fees from City utilities exceeded budget estimates. Development Review Fees. Collections to date are on target with budget estimates. Recreation Fees. These revenues are slightly below targets based on results from the same quarter last year. D-1 Quarterly Financial Report Second Quarter of 2010-11 D-2 Expenditures. Operating costs are generally on target for the second quarter of the year as summarized below: Expenditures By Type Budget YTD Actual % Expended Staffing 41,111,200 21,001,300 51% Contract services 4,388,200 2,111,200 48% Telecomm & utilities 1,910,100 814,100 43% Insurance 1,976,900 1,899,000 96% Other operating costs 2,851,800 1,300,200 46% Minor capital 38,200 0% Total by type 52,276,400 27,125,800 52% Reimbursed expenditures (4,349,400) (2,174,700) 50% Total 47,927,000 24,951,100 52% Because there were three payrolls in July and December, we are actually on target for staffing costs. The only other key variance by type is insurance: this reflects the City’s annual premium for liability, workers compensation and property insurance, which is due in full in July. Departmental operating expenditures are also generally on target: Expenditures Budget YTD Actual % Expended Administration 2,650,400 1,416,100 53% City Attorney 515,000 262,500 51% Human Resources 3,088,000 2,412,500 78% Finance & IT 4,130,600 2,079,900 50% Community Development 2,664,000 1,290,800 48% Parks & Recreation 3,097,600 1,549,100 50% Public Works 11,262,500 5,538,300 49% Police 15,089,300 7,574,200 50% Fire 9,779,000 5,002,400 51% Total Departmental 52,276,400 27,125,800 52% Reimbursed Expenditures (4,349,400) (2,174,700) 50% Total Expenditures 47,927,000 24,951,100 52% The only significant variance is in Human Resources, which reflects the City’s annual insurance premium payments as discussed above. ENTERPRISE FUNDS In general, enterprise fund revenues and expenditures are consistent with past trends. The Golf Fund currently has a negative cash position, which is due to the timing of revenues from cell site leases. Water Fund Working Capital Budget YTD Actual Percent Revenues 15,727,500 8,545,700 54% Expenditures Operating programs 14,054,300 7,901,400 56% CIP projects 8,506,800 1,276,400 15% Debt service 2,341,500 1,030,100 44% Balance, Start of Year 15,653,800 15,653,800 Balance, Year-to-Date 6,478,700 13,991,600 Sewer Fund Working Capi tal Budget YTD Actual Percent Revenues 13,407,600 6,951,200 52% Expenditures Operating programs 7,898,400 3,655,100 46% CIP projects 6,214,100 903,500 15% Debt service 3,243,700 2,721,600 84% Other Sources (Uses)(35,500) 0% Balance, Start of Year 9,628,500 9,628,500 - Balance, Year-to-Date 5,644,400 9,299,500 - Parking Fund Working Capi tal Budget YTD Actual Percent Revenues 4,006,000 1,919,500 48% Expenditures Operating programs 2,274,400 1,085,300 48% CIP projects 2,665,300 147,600 6% Debt service 1,483,000 542,800 37% Other Sources (Uses)(23,100) 0% Balance, Start of Year 7,291,800 7,291,800 - Balance, Year-to-Date 4,852,000 7,435,600 - Transit Fund Working Capi tal Budget YTD Actual Percent Revenues 4,350,100 2,013,500 46% Expenditures Operating programs 2,981,600 1,245,800 42% CIP projects 1,786,200 908,500 51% Other Sources (Uses)(7,500) Balance, Start of Year 838,600 838,600 - Balance, Year-to-Date 413,400 697,800 - Golf Fund Working Capi tal Budget YTD Actual Percent Revenues 386,700 168,100 43% Expenditures Operating programs 697,100 367,000 53% CIP projects 43,300 24,800 57% Other Sources (Uses)315,700 138,600 44% Balance, Start of Year 38,000 38,000 - Balance, Year-to-Date - (47,100) - Whale Rock Commission - - Working Capital Budget YTD Actual Percent Revenues 1,170,000 628,100 54% Expenditures Operating programs 1,013,400 472,400 47% CIP projects 573,400 - 0% Other Sources (Uses)(8,900) 0% Balance, Start of Year 932,900 932,900 - Balance, Year-to-Date 507,200 1,088,600 - For More Information. This summary is based on detailed information produced by the City’s financial management system. If you would like additional information, or have any questions about the report, please call Finance at 781-7128. Electronic Distribution: All Employees San Luis Obispo City of Sales Tax Newsletter Third Quarter of Calendar Year 2010 OVERVIEW It appears that revenues are slowly recovering to a new lower base. However, revenues are still down 18% from the peak in the 4th quarter of 2006. For the Quarter. This newsletter covers the City’s sales tax revenues received in January 2011 for sales occurring from July through September 2010. After adjusting for apportionment errors and late payments, “point-of-sale” revenues were up by 7.6% compared with the same quarter last year. This follows a 2.9% increase last quarter. Sales Tax Receipts Summary Sales Tax Receipts 3rd Qtr 2010 3rd Qtr 2009 % Change Reported Point-of-Sale 2,801,823 2,734,015 2.5% Net Adjustments 2,197 (129,062) Adjusted Point-of Sale 2,804,020 2,604,953 7.6% Pool Receipts 285,806 264,771 7.9% Total 3,089,826 2,869,724 7.7% The following summarizes “point-of-sale” revenues by major business group, after adjusting for late payments, apportionment errors last year and other adjustments identified by our sales tax advisor: Adjusted Sales Tax Receipts By Type Point-of-Sale Receipts 3rd Qtr 2010 3rd Qtr 2009 % Change Gen Consumer Goods 1,023,282 946,764 8.1% Autos & Transportation 523,978 487,993 7.4% Restaurants & Hotels 326,819 315,297 3.7% Building & Construction 276,513 258,511 7.0% Fuel & Service Stations 296,581 236,592 25.4% Business & Industry 176,699 182,205 -3.0% Food & Drugs 180,148 177,591 1.4% Total 2,804,020 2,604,953 7.6% Second consecutive quarter of revenue increases. The automobile industry recovery continued as consumers responded favorably to dealer incentives during this quarter. The City also benefited from general consumer goods gains from new businesses as well as from strong sales of electronics, home furnishings and specialty stores. The large increase in receipts for service stations is due to higher fuel prices and consumption. Although the construction industry continues to suffer from the economic downturn, the City saw an increase in sales of lumber/building materials, plumbing/electrical supplies and paint/glass supplies. Measure Y Revenues. Measure Y revenues were up 3.6% from last year, generating $1,372,135 for the quarter. NEWSLETTER CONTENTS This newsletter includes a summary prepared by the City's sales tax advisor highlighting key trends and sales tax issues. It also includes the following charts and graphs about the City's sales tax base:  Major business groups: third quarter 2010 and 2009 Several of these charts are sed on “raw” unadjuste data. As such, caution be used in ana ba d should lyzing these results.  Top 25 sales tax producers (listed alphabetically for this quarter)  Top 15 business categories: this quarter compared with last year  Sales per capita: City compared with the County and State, last 13 quarters  Major business groups: last 13 quarters  Sales per capita: City compared with five other agencies in the region, last 13 quarters  Sales tax revenues by geographic area: this quarter compared with last year A listing of individuals and organizations that routinely receive this newsletter is provided at the end of the report. MORE INFORMATION AVAILABLE The information provided in this newsletter is based on a detailed database available to the City through our sales tax advisor. If you require additional information about the City's retail base, or have any questions about this newsletter, please contact Mary Bradley, Interim Director of Finance & Information Technology, at (805) 781- 7125. D-3 Monthly TOT Report December 2010 February 7, 2011 This report covers the City's transient occupancy tax (TOT) revenues for December 2010 compared with the two prior years. As reflected below, revenues for the month of December 2010 are up by 11.2% from the same month last year and up 8.8% year to date. Year End TOT Revenues Prior Year Last Year This Year 2008-09 2009-10 2010-11 Amount Percent July $565,637 $508,195 $541,806 $33,610 6.6% August 609,452 511,564 542,296 30,732 6.0% September 416,859 400,023 437,543 37,520 9.4% October 416,905 414,870 442,586 27,716 6.7% November 354,737 280,913 330,924 50,010 17.8% December 274,871 246,684 274,417 27,733 11.2% Year To Date Total 2,638,461 2,362,250 2,569,572 207,322 8.8% January 258,316 230,279 February 292,343 273,373 March 289,506 326,099 April 391,891 423,158 May 393,431 372,997 June 456,098 489,924 Year End Total 4,720,047 4,478,080 The revenues shown in this report are prepared on an accrual basis as of the end of the month. They are based on TOT amounts reported by operators but not necessarily remitted to the City within the 30 days after month-end required by the City's TOT ordinance. Last Year Vs This Year Increase (Decrease) Trend Analysis. December brings the seventh straight month of TOT revenue increases. Although this is encouraging news, TOT revenues are still below their 2007-08 pre-economic decline level by 12% for December and 5% year-to-date. We remain cautiously optimistic that this positive trend will continue. The City recently received positive publicity on the Oprah show that we are hopeful will bulster tourist activity and, thus, TOT revenues. We are currently above our projected increase of 2% for the 2010-11 fiscal year and will update our projections for TOT revenue at the mid-year budget review in March. For More Information. Please call Jennifer Thompson, Revenue Supervisor, at (805) 781-7129. DISTRIBUTION: City Council, Budget Review Team, Fiscal Officers, Department Heads, The Tribune, Economic Development Manager, John Lindt, Dave Kastner, Chamber of Commerce, Verdin Marketing, Pragna Patel, Business Times, New Times, SLO City News, SLO Journal D-4 Section E STATUS OF GOALS AND OBJECTIVES STATUS OF GOALS AND OBJECTIVES As of February 1, 2011 TABLE OF CONTENTS INTRODUCTION Overview 1 Report Card: Major City Goals and Other Important Objectives 1 Report Card: Other Council Objectives 2 Action Plan Changes 2 Next Report 3 MAJOR CITY GOALS Infrastructure Maintenance 4 Traffic Congestion Relief 6 Economic Development 11 Preservation of Essential Services and 15 Fiscal Health OTHER IMPORTANT OBJECTIVES Land Use and Circulation Elements Tasks 18 Open Space Preservation 19 Green House Gas Reduction and 21 Energy Conservation Downtown Maintenance and Beautification 23 Historic Preservation 25 OTHER COUNCIL OBJECTIVES Creek and Flood Protection 26 Skate Park 26 Urban Forest 26 Homeless Services 26 CARRYOVER GOALS AND OBJECTIVES Major City Goals Economic Development: Sales Tax and 27 TOT Revenues Other Council Objectives Waterways Management Plan 27 Implementation Program Laguna Lake Dredging Study 27 Tree Planting and Maintenance 27 Airport Area Annexation 27 Broad Street Corridor Plan 28 STATUS OF MAJOR CIP PROJECTS Status of Major Capital Improvement 29 Plan (CIP) Projects INTRODUCTION OVERVIEW E-1 This report details the status of Major City Goals and Other Important Objectives set by the Council as part of the 2009-11 Financial Plan as of February 1, 2011. In general, we are on-track in accomplishing these objectives based on the work programs adopted by the Council. Report Card. The following is a quick “report card” on the status of Major City Goals and Other Important Objectives based on the “action plans” approved by the Council as part of the 2009-11 Financial Plan. As a benchmark, at February 1, 2011, we are 75% through the two- year Financial Plan period. Most of the goals and objectives are near or exceed this level. Organization. The “report card” is followed by a short summary of notable changes from the original action plan. After this is a more detailed report on each Major City Goal and Other Important Objectives, which shows the objective, action plan as adopted by the Council, any revisions (additions are shown in italics; date changes are also shown in italics and highlighted in a separate column; and deletions are shown in strikeout) and a brief status summary as of February 1, 2011. Important Note Many of these are multi- year goals that have activities associated with them that go beyond the two-year 2009-11 time frame. This status report is focused on approved “Action Plan” tasks as of February 1, 2011. Shorter reports are provided for “other Council objectives” for 2009-11 as well as for “carryover goals” from 2007-09. Report Card: 2009-11 Major City Goals & Other Important Objectives Percent Complete as of February 1, 2011 Per Actions Plan Tasks 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Historic Preservation Downtown Maintenance & Beautification Green House Gas Reduction & Energy Conservation Open Space Preservation Land Use & Circulation Element Tasks OTHER IMPORTANT OBJECTIVES Preservation of Essential Services & Fiscal Health Economic Development Traffic Congestion Relief Infrastructure Maintenance MAJOR CITY GOALS INTRODUCTION Report Card: 2009-11 Other Council Objectives Percent Complete as of February 1, 2011 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Homeless Services Urban Forest Skate Park Creek & Flood Protection ACTION PLAN CHANGES As noted above, in general we are on-track in accomplishing these goals and objectives based on the work programs adopted by the Council. However, notable changes from the original action plans include the following. Major City Goals E-2 Traffic Congestion Relief. The economy and development market have slowed considerably, and as a result, congestion relief improvements contingent upon development (such as Prado Road extension) have been delayed significantly. However, the impacts of these delays are partially offset by the absence of increased traffic associated with the new developments. State transit funding continues to be volatile. Passage of Proposition 22 in the November election may stabilize some of these funding sources for the remainder of FY 2010-11 and beyond. Funding from the Transportation Development Act (TDA) has decreased in 2010-11 but was partially offset by the 2010 Gas Tax swap as well as the allocation of State Transit Assistance (STA) funding to local jurisdictions. Transit service changes were deferred in October 2010 based on revised revenue projections and potential fare adjustments in FY 2011-12. The Los Osos Valley Road (LOVR) interchange project has been delayed due to environmental litigation against Caltrans. Staff continue to work with Caltrans to resolve the issues, and 60% of the plans, specifications and estimates (PS&E) are complete and awaiting resolution of the litigation. The Bob Jones Trail bridges project has been delayed as staff work with Caltrans to coordinate the LOVR interchange project (the south end of the project). Caltrans rejected the City’s request to encroach into US 101 to construct the southern connection to LOVR, prompting a revision of the project to make the necessary connection with a stand alone bridge. Costs for the bridge project will exceed the amount budgeted so staff will seek additional grant funding for this project. It is anticipated that the northern connection at Prado Road will be fully designed and ready for construction by spring 2011. Staff continue to develop a revised alignment for the Railroad Safety Trail (RRST) in the Phase 3 area. Union Pacific Railroad (UPRR) reversed its earlier approval of the project based on a corporate policy that does not allow any type of easement that places activities closer than 40 feet from the centerline of the tracks. As the trail is currently designed, the bicycle path through this area would be placed inside that limit. Staff are exploring other routing options to complete the Trail in this area and will present findings to the Council by June 2011. Phase 4A of the RRST is substantially complete but awaiting final permit approval by UPRR of signal improvements at the intersection of Foothill and California. The Madonna Bike Path was completed INTRODUCTION E-3 in January 2011. Measure H, a voter initiative to delete a portion of the Prado Road extension adjacent to the Damon-Garcia Sports facility, qualified for the November election. Staff delivered numerous presentations to community groups about the potential impact to future congestion relief efforts if the measure passed. However, the measure was ultimately defeated at the polls. The State Route 1 Major Investment Study (SR-1 MIS) was completed and adopted by Council on June 6, 2010. Other Important Objectives Land Use and Circulation Element Tasks. The traffic model update is now complete and being beta tested by staff. Final revisions to the forecast transit module were completed in January 2011. Evaluation of the Land Use Element policies and programs is in process. Greenhouse Gas Reduction and Energy Conservation. This work program is in progress. The City received $199,400 from the Energy Efficiency and Conservation Block Grant Program (EECBG) and will use $48,400 of these funds to develop a Climate Action Plan. Staff are updating the Cal Poly developed draft prior to releasing it for public review. The Council adopted a resolution to participate with the County of San Luis Obispo in the California FIRST energy efficiency financing pilot program; however, that program has been placed on hold until mortgage lending issues are resolved. Staff will continue to work with the program team to explore other alternatives to energy improvement financing. Other Council Objectives All objectives have seen progress. There are no significant changes to report. NEXT REPORT We will present the next “formal report” to the Council in May 2011. In the interim, we will keep the Council up-to-date on the status of major projects through agenda reports, Council Notes and other briefing opportunities. MAJOR CITY GOALS E-4 INFRASTRUCTURE MAINTENANCE Objective. Sustain an effective level of core existing infrastructure maintenance such as streets, sidewalks, creeks and flood protection, as well as the protection and maintenance of other physical assets. Action Plan Task Current Revised Building Maintenance Projects 1. Fire Station 3 Shower Stall Construction, Police Annex Sewer Lateral Replacement, Carnegie Library Exterior Sealing, Laguna Lake Restroom Replacement Complete 2. Meadow Park Roof Replacement, Santa Rosa Restroom Replacement 6/11 FY2011-13 Playground Equipment Projects 1. Throop Park playground Equipment Replacement Complete 2. Meadow Park playground Equipment Replacement construction; Johnson, Santa Rosa and Emerson Park playground Equipment Replacement design 6/11 Street and Flood Protection Projects 1. Andrews Drainage System Design, Drainage Facility Design, Street Reconstruction and Resurfacing Design, Sign Reflectivity Software and Equipment Purchase, Sidewalk Repairs, Sidewalk Ramp Construction, and Street Light Pole Painting 2/11 6/11 2. Andrews Drainage System Permitting, Drainage Facility Construction, Sidewalk Repairs, Pavement Area and Downtown Street Reconstruction and Resurfacing Design and Construction, Sign Replacements, Sidewalk Ramp Construction, Parking lot resurfacing, Street Light Pole Painting, Downtown Tree Management Plan Tree and Sidewalk work 6/11 3. Pavement and sidewalk maintenance by City staff Ongoing Utility Projects 1. Polybutylene Water Service Replacement, Waterline Replacement, Sewerline Replacement, Raw Waterline Coating 6/11 2. Polybutylene Water Service Replacement, Waterline Replacement, Sewerline Replacement, Water Treatment Plant Roof Replacement and Filter Media Replacement, Clarifier Recoating, 6/11 Downtown Design Standards Complete review and modifications of Downtown design standards used in infrastructure maintenance as part of the Council’s Downtown Maintenance and Beautification objective Complete Status Summary: 75% Complete. The following is a summary of accomplishments and important next steps for this goal. Due to a heavy workload in Engineering, and other factors such as the UPRR negotiations, Caltrans permit delays, detailed work to deliver a modified Downtown project, and neighborhood issues, some delay in project schedules has occurred. Staff are working to keep the new schedules for project delivery. Engineering staff have also accelerated the delivery of the Upper Monterey Street reconstruction project to take advantage of American Recovery and Reinvestment Act (ARRA) funds from the RRST Phase 3 project, which has been put on hold. MAJOR CITY GOALS E-5 Building Maintenance Projects. The Fire Station 3 Shower Stall construction, Police Annex lateral replacement, the Laguna Lake restrooms, and the sealing of the Carnegie Library are complete. Park Projects. Design for the Santa Rosa restrooms is complete. The Meadow Park Roof project will be delayed until next year because a bidding issue prevented contract award. Construction is expected to begin in August 2011. Design is nearly complete for the Meadow Park playground equipment. The Throop playground equipment replacement project is complete. The design of the next projects has been delayed and is now expected to be completed in summer 2011. Street and Flood Protection Projects. Marsh Street microsurfacing, along with some minor utility work, is complete along with the LOVR pavement repairs which were accelerated due to damage resulting from the wet weather. The Andrews Street drainage system plans are nearing completion, and staff will meet with the neighbors to discuss the projects this spring. Permitting for work in the channel is not complete and it is currently unknown if work will begin this summer or next. Higuera Culvert and Street Reconstruction projects are under design. Sidewalk repairs are complete. Staff has moved to the next paving area and are preparing for next year’s street microsurfacing, as well as completing smaller scale full overlay maintenance work. The Warden Bridge resurfacing project was deleted by the Council. The street light pole painting work will continue with the Downtown beautification project. Utility Projects. Polybutylene service replacement project and waterline replacement projects are complete and sewerline work is underway. The Raw Waterline Protection project has been postponed. Clarifier recoating project is complete. The Digester repair project will take place during the summer of 2011 to take advantage of reduced plant loads. MAJOR CITY GOALS E-6 TRAFFIC CONGESTION RELIEF Objective. Continue efforts on projects and programs which relieve traffic congestion, such as street modifications, intersection improvements, pedestrian improvements, bicycle facilities, trip reduction programs, traffic signal operations and public transit. Action Plan Task Current Revised Transit Service Levels 1. Maintain existing transit levels for local and regional services with uncertain levels of State and Federal funding. Ongoing 2. Implement recommendation in the Short Range Transit Plan if funding is available. Ongoing 3. Explore alternative fuel and vehicle type to offset operational costs. Ongoing Transit Improvements 1. Use federal and state capital funding to replace and upgrade vehicles. Ongoing 2. Use federal American Recovery and Reinvestment Act (ARRA) and state capital funding to upgrade Automatic Vehicle Location (AVL) system for improved on time performance. 12/10 Complete 3. Use federal (ARRA-completed) and state capital funding to improve the transit facility on Prado Road. 4/11 FY2011-13 Congestion Management Report Implement low cost recommendations of the Congestion Management Report. Ongoing State Route 1/Highway 101 Work with San Luis Obispo Council of Governments (SLOCOG) and Caltrans regarding further planning for State Route 1 (Santa Rosa Street) including an alternatives assessment for US 101/State Route 1 interchange. Complete Prado Road Extension Work with west side Margarita area property owners to implement phased improvements to Prado Road. Ongoing Signalization of US 101/Grand Avenue Intersection 1. Complete design. 12/10 3/11 2. Begin construction. 3/11 5/11 3. Complete construction. 8/11 FY2011-13 Los Osos Valley Road Interchange 1. Complete construction plans and specifications. 6/11 2. Begin right of way acquisition. Complete 3. Complete right of way acquisition. 6/11 4. Pursue additional funding. Ongoing 5. Implement phase improvements as new development occurs. Ongoing Traffic Model Update 1. Complete base year traffic model update. Complete MAJOR CITY GOALS E-7 Task Current Revised 2. Recruit temporary or contract staff, or consultant assistance for traffic model development. Complete 3. Complete Traffic Model Update with existing Land Use scenarios. 1/11 Complete 4. Identification and development of strategic revisions to the Land Use Element in superseded sections. 6/11 5. Conduct traffic model assessments of various land use modifications for future year forecasts and strategic revisions to the Circulation Element. 6/11 Neighborhood Traffic Management Program Update Update the Neighborhood Traffic Management program to reflect current practices and principles. 4/11 Aero Drive Realignment Work with the County of San Luis Obispo to relocate Aero Drive and signalize access to San Luis Obispo Regional Airport. Complete SLO County 511 Work with Rideshare to promote a new 511 traffic hotline. Ongoing Johnson and Buchon Intersection Improvements 1. Begin project design (combined scope of Pismo/Buchon neighborhood traffic management program). Complete 2. Begin construction. 2/11 3. Complete construction. 6/11 Tank Farm Road Intersection Improvements 1. Initiate design of Tank Farm Road widening project. 2. Complete project design. Complete 6/11 Railroad Safety Trail - Phase 3: Amtrak to Marsh Street 1. Identify alternative routes and present initial findings to the Council. 2. Pursue additional funding. 6/11 Ongoing Railroad Safety Trail - Phase 4A: The Missing Link (Foothill to Cal Poly) 1. Complete construction drawings. Complete 2. Begin construction Complete 3. Complete construction 4/11 Railroad Safety Trail - Phase 4: Foothill to Hathaway 1. Complete construction drawings. Complete 2. Begin construction Complete 3. Complete construction Complete Railroad Safety Trail Bridge: Highway 101 Crossing 1. Identify alternative routes and present initial findings to the Council. 6/11 2. Pursue additional funding Ongoing Bob Jones City-to-Sea Trail: North Connection to Prado Road 1. Pursue outside funding for trail connections. Ongoing MAJOR CITY GOALS E-8 Task Current Revised 2. Complete construction drawings. 4/11 3. Complete construction. 6/11 FY2011-13 Bob Jones City-to-Sea Trail: Southern Connection to LOVR 1. Pursue outside funding for trail connections. Ongoing 2. Complete Caltrans permitting. 4/11 Bill Roalman Phase II Complete construction. Complete Madonna Road Bike Path Work with property owners and Caltrans to implement a new bicycle facility that connects Madonna Road to Marsh Street. 2/11 Complete Mid-Higuera Widening Evaluate the costs and benefits of landscaped medians in the as set forth in the Mid- Higuera Street Enhancement Plan and present results to the Council. Complete Other Projects That Reduce Traffic Congestion 1. Complete curb ramps, on-street bicycle facility paving and striping improvements in conjunction with City Street paving projects. Ongoing 2. Implement Neighborhood Traffic Management projects. Ongoing 3. Construct curb ramps and install sidewalks. Ongoing 4. Conduct bi-annual vehicle and bicycle traffic counts. Ongoing 5. Complete miscellaneous bicycle facility improvements identified in the Bicycle Transportation Plan, as resources permit. Ongoing 6. Develop a list, in conjunction with the Bicycle Committee, of streets that would benefit from increased street sweeping and coordinate with Street Maintenance to use miscellaneous sweeping hours, when available, to increase frequency. Ongoing 7. Seek funding for the design and construction of bikeways and pedestrian paths within the City. Ongoing 8. Promote bicycling, walking and transit as alternative forms of transportation. Ongoing 9. Provide more bicycle parking through the City’s “Racks with Plaques” program. Ongoing Status Summary: 75% Complete. The following is a summary of accomplishments and important next steps for this goal. 1. The City learned in June 2010 that the State implemented a Gas Tax swap and re-established some State Transit Assistance (STA) funding for FY 2010-11. SLOCOG programmed approximately $216,000 in STA funding for the current fiscal year to assist in transit operations. State TDA funding is still significantly below historic levels. 2. On October 5, 2010, the Council implemented a partial list of fare box modifications that adjusted the Trolley fare and deferred consideration of other fare increases until the 2011-13 Financial Plan process. 3. ARRA grant funding for transit improvements has been programmed, and projects are completed. The AVL system is 100% complete, and the City accepted the system on October 31, 2010. The fare box upgrade project is complete. The transit facility ARRA improvements are 100% complete and the roof repairs have been completed. Modification to the facility to accommodate the double deck bus has been completed and MAJOR CITY GOALS E-9 approximately $44,000 in Federal Transit Administration (FTA) 5307 2007-08 (non-ARRA) grant funding remains to be spent. Facility projects, such as the retirement of the in-floor bus lift system, have been delayed due to design and permitting review and are expected to be included in the work programs for the 2011-13 Financial Plan. 4. Work was completed on the SR-1 MIS project and it was adopted by Council on June 6, 2010. Construction funding for the LOVR/Highway 101 interchange project was delayed by the California Transportation Commission (CTC) and is now scheduled for FY 2014-15. The City had requested that SLOCOG accelerate right-of-way (ROW) funding for the LOVR/Highway 101 interchange project but instead the City has advanced ROW funding for the project in exchange for funding an equivalent amount in the construction phase of the project. Plans, specifications and engineering (PS&E) for the interchange are approximately 60% complete; however, the project report still needs to be approved by Caltrans and processing of the PS&E is on hold due to environmental litigation between Caltrans and residents of the Los Verdes condominiums. This delays the approval of final construction drawings until 2011. Staff continue to work with Caltrans to resolve these issues and complete the design and environmental approvals for the project. 5. The draft update to the Neighborhood Traffic Management (NTM) Program has been completed and is circulating internally for review. Final Council review of these changes will be delayed until March 2011 in order to complete the design for the Buchon/Pismo/Johnson NTM and Laguna Village Shopping Center driveway issues. 6. The neighborhood vote on the Buchon/Pismo/Johnson NTM was adopted by Council on June 1, 2010. Design has begun on the public improvements, and construction will begin in early 2011. 7. The Tank Farm Road intersection improvements design project has been initiated and scoping of the project is underway. 8. Public improvement plans have been approved for the Prefumo Creek Commons project. Offsite improvement plans which include improvements to the intersection of Madonna/LOVR are being reviewed and. approval is anticipated in February 2011 with construction in spring. The Target store is scheduled to open in late summer or early fall of 2011. 9. The Bob Jones Trail bridges project has been delayed as efforts are underway with Caltrans to coordinate the work with the LOVR Interchange project. Encroachment into the Caltrans right of way has been denied due to conflicts with the clear recovery area of the freeway. Revised conceptual plans have been submitted to Caltrans for a stand alone bridge facility to complete the southern connection. This project will cost substantially more than budgeted so staff will need to solicit additional grant sources for its completion. The design of the northern bridge connection (to Prado Road) is moving forward and should be completed in April 2011. However, due to permit conditions from resource agencies, the construction of the bridges will be limited in the creek areas to the August-October 2011 timeframe. This will delay final construction completion to November 2011. MAJOR CITY GOALS E-10 10. RRST Phase 4A - the Missing Link is under construction and approximately 80% complete. The traffic signal work at the intersection of Foothill and California is delayed as UPRR reviews the timing changes to accommodate railroad preemption for the new crossing. 11. Measure H, a voter initiative to delete part of the Prado Road extension adjacent to the Damon-Garcia Sports facility, qualified for the November election. Staff made numerous presentations to community groups about the potential impact to future congestion relief efforts of the various specific plans and mitigating infrastructure. 12. Staff have received final confirmation from UPRR that a lease agreement for the RRST Phase 3 (Amtrak to Marsh Street) and Highway 101 Bridge is not possible as these projects are currently designed, which was based on UPRR approvals received in 2004. UPRR has reversed its earlier approval based on a corporate policy that does not allow any type of easement that would place activities closer than 40 feet from the centerline of the tracks. The bicycle path through this area had to be placed inside that limit. Staff will explore other options to complete the Trail in these two key locations and plan to present initial findings to the Council by June 2011. MAJOR CITY GOALS E-11 ECONOMIC DEVELOPMENT Objective. In collaboration with Cal Poly, Cuesta and the business community, develop strategies to increase economic development including emphasis on head-of-household jobs and environmentally sustainable businesses. Action Plan Task Current Revised Business Retention and Expansion (BRE) – Data Collection and Analysis 1. Finance & Information Technology (IT) hires Administrative Analyst. Complete 2. Develop Business Retention and Expansion (BRE) database using existing data from city and external sources. Ongoing 3. Conduct 72 business surveys (4 per month beginning January 2010). 6/11 4. Update BRE database with information from surveys and existing sources of information. Ongoing 5. Use BRE data to produce a quarterly newsletter on business retention and expansion efforts. Ongoing 6. Use BRE data to produce metrics about inquiries to the City. Ongoing 7. Work with Administrative Analyst to manage the BRE database, analyze the information, produce metrics and disseminate information. Ongoing 8. Continue to conduct 10 business visitations with Council per year. Complete 9. Continue to collaborate with Community Development on the Seismic Retrofit Program. Ongoing Identify Industry Clusters and Opportunities 1. Begin a series of forums to identify industry clusters and opportunities for job growth drawing on expertise from the business, environmental, educational and governmental communities. Ongoing 2. Draft a working list of industry clusters and opportunities. Ongoing 3. Present working list of industry clusters and opportunities to participants and foster opportunities for continuing collaboration on the list and opportunities. Ongoing Information Outreach 1. Identify changes that would make economic development information more accessible to users of the City web pages. Complete 2. Work on web upgrades as time and staffing constraints permit. Ongoing 3. Coordinate with available staff to periodically update the web pages with data to market City as place to do business. Ongoing 4. Explore ideas and opportunities to support the business community during the economic downturn through strategic economic development initiatives program. Complete MAJOR CITY GOALS E-12 Task Current Revised 5. Continue to contract with HdL and economic forecasters for data pertinent to businesses. Ongoing Collaborative Economic Development Efforts 1. Develop Strategic Economic Development Initiatives Program and recommend funding allocations to Council. Complete 2. Participate with the Chamber of Commerce coordinated committee for collaboration between business, government and universities. Ongoing 3. Foster collaborative activities with the environmental community (including ECOSLO, Sierra Club, and Land Conservancy) beginning with participation with the Chamber’s Sustainability Committee. Ongoing 4. Collaborate with Community Development and Finance & IT Departments to explore opportunities for economic development action presented by AB 811. Ongoing 5. Partner with tourism efforts to market the community as a place to do business. Ongoing Status Summary: 75% Complete. The following is a summary of accomplishments and important next steps for this goal. Business Retention and Expansion Efforts The City’s business retention and expansion efforts have proven to be an important vehicle to let businesses know they are valued by the City. The meetings that occur through this program also generate information about the make-up of the local business community through a survey instrument. With 44 of 72 surveys currently accomplished, program efforts continue to provide a baseline of information about businesses in the City and to provide encouragement to businesses for the work they do in creating jobs. The focus of the work on this Major City Goal has evolved to include electronic outreach. Economic Development staff have utilized interns and support from other City departments to collect email addresses for one-third of in-City businesses. Collection of the addresses is an ongoing effort that pulls information from business license applications and other resources. At the start of the project, the program maintained no email data and this effort has now matured into a priority so that a reliable and robust group of business emails can be used as an effective communication tool for the Economic Development effort. With the ability to reach out electronically, targeted surveying has started, which enhances the data collection about the City’s local business mix. An outgrowth of the effort to enable electronic outreach is the e-tips program. Originally envisioned as a newsletter with statistics about our community, the e-tip offers a quick way to get information out to the City business community on an “as-needed” basis and about a wide range of issues. Business license data has been the target of another large effort. Elimination of inconsistencies and incorrect business coding is underway to make this database more reliable and useful. The transition of business codes from Land Use to the new system (Energov) is being scrutinized to assure consistency with the business licensing coding. The 2011 business visitation program is underway with a recent visit to Shopatron, a local on-line retail sales facilitator, and the Prefumo Creek Commons retail center on Los Osos Valley Road (Target Center). As a Chamber of Commerce activity, this program highlights local business endeavors. The visit to the Target Center highlighted the continuing work to build out the center. Two stores, the Target and the MAC Superstore will MAJOR CITY GOALS E-13 open in early July with others following closely. Shopatron’s business model was of particular interest to participants, including the high growth, high tech nature of the business. Seismic strengthening projects continue to make good progress. Compliance with the current deadlines is being managed by the Building Division with assistance and outreach from Economic Development. Council accepted the annual unreinforced masonry hazard mitigation program status report in January 2011, showing 23 of 126 buildings still requiring strengthening. The buildings that qualified for the 2012 deadline group by strengthening to Level A have started to come to life with owners looking at beginning their work. Special attention will be given to the status of the Springfield Baptist Church relative to its deadline in July 2011. Industry Clusters and Opportunities The Economic Strategy planning effort undertaken by the Economic Vitality Corporation (EVC) for the County included identification of the clusters where job growth occurs, convening of focus groups, and identification of business needs for fostering business expansion and job growth within the clusters. The identified industry clusters are the growth industries of the County-wide economy. Given that clusters transcend City and even County boundaries, City-identified clusters were adjusted to conform to those identified in the County’s Strategic Economic Planning process rather than initiating a wholly separate process. The separate effort envisioned in this Major City Goal to identify industry clusters was streamlined to build on the efforts undertaken by the EVC and to facilitate coordination between County (EVC) efforts and those of the City. Targeted businesses in the City have been sorted by cluster to effectively accomplish outreach via the Business Retention and Expansion program. In addition, business districts have been identified within the City using geographic information systems (GIS) to illustrate the locations of like businesses. This data can be used for marketing certain areas to growing or relocating businesses. City staff continues to participate in the industry groups that grew out of the process of formulating the Economic Strategy. These meetings, facilitated by the EVC, provide the City an opportunity to reach out to additional businesses, provide input and to facilitate communication of business needs that are surfaced via the work of the industry groups. Information Outreach The Economic Development web presence within the City of San Luis Obispo website remains an ongoing focus for improvements to facilitate access to information and organizations that assist businesses. These improvements are incrementally undertaken to update information and provide links to outside organizations of interest and utility to business. Utilizing the expertise of existing staff, changes continue to be accomplished. Although it was originally envisioned that the City would hire an outside consultant to provide expertise for web upgrades, alternative funding through the Promotional Coordinating Committee (PCC) became available for a fully separate website aimed at business owners visiting the City and looking for information and assistance in setting up shop here. The site is also intended to offer a “welcome mat” to any business looking for help. A contract for this work has been awarded to the Chamber of Commerce with the new site expected to go live in June 2011. This exciting site will emphasize business to business concerns and will bring Chamber of Commerce and City Economic Development efforts together on the web. The HdL Business Licensing database has become a source of statistics about businesses in the City. Information from the Business License database is also provided to the City’s partners in economic development upon request. The ability to provide information about the total number of businesses, the types of businesses, and the changes in the business community has grown with the data being used for purposes beyond revenue collection. More information about new businesses is posted on the website and work by staff continues to enhance this resource. Collaborative Economic Development Effort MAJOR CITY GOALS E-14 The jointly sponsored “Collaboration” Committee, comprised of the City of San Luis Obispo, Cal Poly, the County, the EVC and the business community, has assessed the region and identified key factors for creating an entrepreneurial ecosystem here. By studying communities that are similar to San Luis Obispo, the key factors were identified and compared to factors already existing here. The strategic economic development initiative approved in concept by Council on July 21, 2009 has provided the City’s portion of funding for this joint planning effort. Action steps are currently being formulated by the Committee with the overriding goal of creating jobs via support of emerging business. Businesses continue to rely on the City’s partners for business support: Cuesta College’s Business Assistance Center, now the Business and Entrepreneurship Center at Cuesta College; Mission Community Services Corporation, the EVC’s revolving loan fund for City of San Luis Obispo businesses; and Service Corps of Retired Executives (SCORE). An emphasis on “green” businesses continues to drive program efforts to identify new business licensees with a focus on sustainability and to offer a welcome mat to all businesses, particularly green businesses. As a result, staff continues to take all opportunities to foster relationships with local conservation organizations and gain knowledge via the work accomplished by Natural Resources staff. Finally, collaboration between the Economic Development Program and the City’s tourism efforts is ongoing with an aim to maximize the effectiveness of both programs. The new contract for website development is a major crossover between the two City efforts. MAJOR CITY GOALS E-15 PRESERVATION OF ESSENTIAL SERVICES AND FISCAL HEALTH Objective. Adopt a balanced budget that retains the City's fiscal health, preserves essential services and implements long-term productivity improvements and cost-reduction strategies. Action Plan Task Current Revised 1. Implement organization-wide savings recommended by community members and City employees. Ongoing 2. Continue to closely review and monitor the City’s fiscal situation.Ongoing 3. Implement budget-balancing strategies adopted in the 2009-11 Financial Plan.Complete 4. Review and update as appropriate key infrastructure maintenance plans. a. Present Pavement Management Plan update to Council.Complete b. Review other plans for update as appropriate and present the results to the Council. 6/11 5. Resume “best practice reviews” that focus on one to two significant internal control areas annually that typically cross department activities. Ongoing 6. Continue supporting pension reform. Ongoing 7. Implement ongoing “benchmark” analysis of key financial and outcome measures with comparable communities every two years. 6/11 8. Update the Property Management Manual: comprehensive review of our property management policies and procedures, including property acquisition, sale and lease. Complete 9. Continue evaluating contracting-out opportunities for cost reductions or service improvements. Ongoing 10. Maximize grant funding opportunities, including “Stimulus Package.”Ongoing 11. Review Memorandums of Agreements. Ongoing 12. Continue succession planning efforts. Ongoing 13. Continue to develop, review, modify and implement Human Resources policies in support of fiscal health. Ongoing Status Summary: 70% Complete. The following highlights key accomplishments so far and important next steps: Implement Organization-Wide Savings Recommended by Community Members and City Employees. Many of these, such as deferring vehicle replacements, lengthening technology replacement cycles and reducing overtime and temporary staffing costs, were implemented as part of the 2009-11 budget-balancing actions. Departments continue to identify and implement cost saving measures on an ongoing basis. MAJOR CITY GOALS E-16 Continue to Closely Review and Monitor the City’s Fiscal Situation. We have continued to issue timely interim reports on the City’s overall fiscal condition, including an interim report on financial results for 2008-09; quarterly financial reports; quarterly sales tax reports; monthly transient occupancy tax (TOT) reports; and monthly cash and investment reports. We presented a detailed review of interim 2008-09 financial results and key fiscal trends to the Council on October 3, 2009. This included a recommendation to participate in the “securitization” of Proposition 1A takeaway from the State, which the Council approved on October 17, 2009. The Comprehensive Annual Financial Report (CAFR) for 2008-09, which includes audited financial statements, was presented to the Council on December 15, 2009. A detailed review of the City’s current financial position and revised projections for 2009-11 was presented to the Council as part of the Mid-Year Budget Review on February 23, 2010. As part of this review, the City implemented the “short-term budget-balancing actions” in the Fiscal Health Contingency Plan, which include: 1. Hiring freeze 2. Travel and training chill 3. Capital Improvement Plan (CIP) deferrals/reductions 4. Operating budget reductions 5. Consider use of reserves below policy levels 6. Other short-term savings as appropriate Specific budget-balancing goals included returning to the Council with $1.5 million in General Fund budget reductions as part of the 2010-11 Financial Plan Supplement in order to retain reserves at minimum policy levels of 20% of operating expenditures. The Council also received a comprehensive briefing on retirement cost trends and future outlook at this meeting. Staff presented a detailed Five-Year General Fund Fiscal Forecast to Council on October 19, 2010. This report included projections of an ongoing budget gap averaging $2.6 million annually over the next five years. These projections included steep increases in CalPERS retirement costs that are expected in 2013-14. Staff recently completed a Service Prioritization Project to give the community and Council another tool to compare and contrast services in deciding how to address this budget gap. During this process, staff identified services the City provides to the community and ranked these services according to an established set of criteria. Department heads met in January 2011 to discuss the project results and identify opportunities for cross- departmental efficiencies and program scalability, as well as potential reduction candidates for the 2011-13 Financial Plan. In a continuing effort to monitor and contain labor costs, staff negotiated agreements with four employee groups in November 2010. The one year agreements (January 1, 2011 through December 31, 2011) provide no cost of living increases or increases to the City’s contribution towards health insurance costs. The agreements, approved by Council on November 16, 2010, save approximately $490,000 annually. On January 4, 2011, Council approved a one-year agreement (January 1, 2011 through December 31, 2011) for the Police Officer Association that provided no cost of living increases or increases to the City’s contribution towards health insurance costs. This agreement saved approximately $233,800 annually. The CAFR for 2009-10 was presented to Council on January 18, 2011. Implement Budget Balancing Strategies Adopted in the 2009-11 Financial Plan. All budget-balancing strategies have been implemented. Present Pavement Management Plan Update. This was presented to the Council on October 6, 2009. MAJOR CITY GOALS E-17 Resume Best Practice Reviews. Staff performed two best practice reviews in 2009-10 on the petty cash and grant management policies. Candidates for future years include fare box collections; parking meter collections; construction change orders; new development-related fee collections; and Fair Labor Standards Act (FLSA) compliance. Update the Property Management Manual. This was presented to the Council on May 18, 2010. Maximize Grant Funding Opportunities, Including “Stimulus Package.” We have pursued several “stimulus” grants as described in further detail on the City’s webpage http://www.slocity.org/administration/econstim.asp. Departments continue to look for opportunities to pursue grants for which the City is eligible. Continue Succession Planning Efforts. The Succession Planning Steering Committee continues to meet bimonthly. The committee’s work on improving the Educational Assistance Program was implemented July 1, 2009. The committee is now reviewing performance management rating scale standards and updating guidelines for performance appraisals to ensure constructive feedback is provided and received as part of the City’s employee development process. Participation in CAL-ICMA Coaching webinars continue to be well attended, with post-call discussions facilitated by City staff. Employee Profiles and Lunch and Learn sessions continue to profile employee’s career paths. During the 2009-11 Financial Plan, the City filled 51% of its job openings through the Employment Opportunity Program, the City’s internal promotion program. OTHER IMPORTANT OBJECTIVES E-18 LAND USE AND CIRCULATION ELEMENTS POLICY AND PROGRAM EVALUATION Objective. Prepare to initiate a focused revision to the Land Use and Circulation Elements by conducting an evaluation of policies and programs of the elements and upgrading the City’s circulation model. Action Plan Task Current Revised 1. Recruit temporary or contract staff or consultant assistance for traffic model development. Complete 2. Develop traffic forecast model. 1/11 Complete 3. Evaluate effectiveness of existing Land Use and Circulation Element policies and programs and identify where changes should be considered. 3/11 5/11 4. Public outreach and input (throughout process). Ongoing 5. Identify and develop of strategic revisions to the Land Use Element and Circulation Element where sections have been superseded. 6/11 6. Produce work program for Sphere of Influence areas and identify new programs that may be warranted to address changing legislation. 6/11 7. Conduct traffic model assessments of various land use modifications for future year forecasts and strategic revisions to the Land Use and Circulation Elements. 6/11 FY2011-2013 Status Summary: 25% Complete The traffic model update is substantially complete and was incorporated into the SR-1 MIS project. Final revisions to the forecast transit module of the model were completed in January 2011. The modeling work will then be updated by staff (possibly via temporary/contract services) to be used in forecasting land use scenarios and changes. Work on this goal was partially delayed due to Measure H, a voter initiative to delete part of the Prado Road extension adjacent to the Damon-Garcia Sports facility, which qualified for the November election. Staff made numerous presentations to community groups about potential impacts to future congestion relief efforts of the various specific plans and mitigating infrastructure prior to the election which displaced work on this objective. Evaluation of existing Land Use and Circulation Element policies and programs has begun but completion may be delayed depending upon budget reduction options and resource changes. Project initiation was delayed due to staffing losses and additional work associated with the Housing Element update and subsequent Historic Preservation Ordinance development. Staff anticipates review of the analysis by the Planning Commission in spring 2011. A more comprehensive update may be possible due to the City’s award of $880,000 in Proposition 84 grant funds. It is likely a new schedule for implementation of the updates will result from the acquisition of these funds and the ability to expand upon the previous scope of the update project. OTHER IMPORTANT OBJECTIVES E-19 OPEN SPACE PRESERVATION Objective. Continue efforts to acquire, preserve, and protect open space, and develop a master plan for City- owned agricultural land at Calle Joaquin. Action Plan Task Current Revised Continued Open Space Acquisition, Preservation and Protection 1. Secure grant funding for the acquisition of Froom Ranch and take ownership. Complete 2. Participate in planning efforts that at a minimum include: (a) the Chevron Tank Farm; (b) the Orcutt Area; (c) County property near General Hospital and the Filipponi/Twisselman property to the east; (d) the Filipponi/Denbow property at the end of Calle Joaquin; and (e) the Gap property on Los Osos Valley Road. Ongoing 3. Continue implementation of elements of City adopted Conservation Plans for: Johnson Ranch; South Hills; Stenner Springs; and the Bob Jones Trail. Ongoing 4. Continue efforts to improve informational signage, trail signage, trail conditions and environmental restoration programs. Ongoing 5. Continue to participate and oversee City-sponsored or –directed mitigation projects, including the Los Osos Valley Road interchange, Bob Jones Trail environmental enhancements, and various private mitigation and enhancement projects throughout the city. Ongoing 6. Review open space “Conservation Guidelines” for consistency with Conservation and Open Space Element of the General Plan and recommend changes if appropriate. 2/11 4/11 7. Continue leadership role in management of the City’s natural waterways through Zone 9 projects, and provide administrative oversight to the Stormwater Management Program. Ongoing Develop Master Plan for City-Owned Agricultural Land 1. Present a Project Plan for Council Review and consideration including recommended task force structure. Complete 2. Conduct and complete research on various public and quasi-public farming models (e.g., Fairview Gardens). Complete 3. Identify interested parties and groups. Hold a series of public input workshops to identify various ideas for the use of City-owned agricultural lands. Develop an email group of participants and provide electronic information updates to this group. Complete 4. Develop a project plan from initial public input that will outline the remainder of the process. Hold a study session with Council to discuss project plan and public participation. Complete 5. Complete public workshops on master plan for City-owned agricultural lands. Use public input as the basis for drafting the master plan for the use of City-owned agricultural lands. Complete 6. Draft a master plan for the use of City-owned agricultural lands. 12/10 Complete 7. Present draft master plan to: Stakeholders, Parks and Recreation Commission, and 1/11 2/11 OTHER IMPORTANT OBJECTIVES E-20 Task Current Revised Planning Commission. 8. Present Master Plan for adoption by Council. 2/11 3/11 Status Summary: 85% Complete. The following is a summary of accomplishments and important next steps for this goal. Secure Grant Funding for Froom Ranch Acquisition and Take Ownership. The property was acquired on July 28, 2010. Agricultural Master Plan for Calle Joaquin Open Space. This project is slightly behind schedule. The draft plan was completed in January 2011 and is currently available for public review. The Planning Commission will review the plan at the meeting on February 23, 2011, and in mid-March 2011, the plan will be presented to Council for adoption. OTHER IMPORTANT OBJECTIVES E-21 GREEN HOUSE GAS REDUCTION AND ENERGY CONSERVATION Objective. Adopt and begin implementing a plan to reduce greenhouse gas emissions and conserve energy for municipal operations and the community. Action Plan Task Current Revised 1. Research Climate Action Plans from other jurisdictions and explore formation of an energy facilities financing district. Complete 2. Analyze green house gas (GHG) emissions inventory to identify GHG sources and opportunities for reductions. Complete 3. Review International Council for Leadership and Environmental Initiatives (ICLEI) best practices information. Complete 4. Identify policies and programs already underway that address energy reductions. Complete 5. Develop “talking paper” for internal staff review and brainstorming including review of Utilities Conservation Office role in the delivery and oversight of energy conservation programs. Complete 6. Present review of progress to Council and adoption of reduction target. 3/11 7. Develop website and information mailer. Complete 8. Implement public outreach and input (i.e. Earth Day event, mailers, interactive web site). Complete 9. Enter data and model alternatives. Complete 10. Prepare draft action plan. 3/11 11. Continue public outreach and input. 2/11 12. Present Action Plan for Council adoption. 6/11 Status Summary: 75% Complete. The following is a summary of accomplishments and important next steps for this goal. The Council adopted a baseline Greenhouse Gas Emissions Inventory on September 15, 2009. This report summarizes the sources of emissions from both municipal operations and the community at large for the base year 2005. City staff applied for Recovery Act Stimulus funds in the form of an Energy Efficiency and Conservation Block Grant (EECBG) and received $199,400. The development of the Climate Action Plan and exploration of formation of an energy improvements financing district will be funded by $49,400 from this grant. The City collaborated with the Cal Poly Climate Team to develop a draft Climate Action Plan. The Team submitted their preliminary audit of the City’s policies, procedures and programs to understand where emissions reductions might already be occurring due to efficiencies implemented since 2005, and where future emissions reductions might be captured with implementation of existing programs. City staff reviewed and commented on the audit and the Cal Poly Team incorporated comments and corrections in the draft plan. The Cal Poly Climate Team researched other communities’ Climate Action Plans and met with City staff and toured City facilities. OTHER IMPORTANT OBJECTIVES E-22 The Team coordinated a kick-off meeting with the Planning Commission in fall 2009 and hosted a booth at three Farmers’ Market events. A website (SLOCOOL.org) was created, as well as a Facebook page. Two community workshops were held: one on November 19, 2009 and a second one on February 17, 2010. Information about the Climate Action Plan effort was included in the November utility mailer newsletter. The Chamber of Commerce processed a survey to assess business receptivity to various energy-reduction strategies. Cal Poly submitted an administrative draft of the Climate Action Plan for City staff review at the end of May 2010. Staff evaluated the draft plan and has provided comments and strategy revisions for consideration. Additional work is required to analyze these revisions for their ability to help the City achieve the required emissions reductions prior to the draft being released for public review. Staff anticipates release of the draft plan in spring 2011. Activity #6 is proposed for deletion because the reduction target and progress will be reported as part of the review of the draft Climate Action Plan. The City initiated participation with the County under a statewide effort to create an AB 811 property-assessed clean energy program sponsored by the League of California Cities and California State Association of Counties to provide energy financing districts. This was formalized under the CaliforniaFIRST pilot program (which is organized around counties) which was successful in partnering in a state-wide application for State Energy Program (SEP) grant funds to assist with program marketing and off-setting program start up costs. City staff had participated in program development meetings when recent positions by Fannie Mae and Freddy Mac essentially put an end to this program. City and county staff are still collaborating on finding alternative ways to finance energy improvements until a more comprehensive solution is found. OTHER IMPORTANT OBJECTIVES E-23 DOWNTOWN MAINTENANCE AND BEAUTIFICATION Objective. Expand Downtown beautification efforts to include enhanced maintenance and cleanliness, a review and upgrade of standards and phased physical improvements. Action Plan Task Current Revised Design Standards & Upgrades 1. Assemble all current downtown design guidelines and standards. Complete 2. Working with the Architectural Review Commission, review the current guidelines and standards and revise or confirm the public improvement design strategy for the downtown including street furniture, trash and recycling containers, and regulatory signage, for Council consideration. Complete 3. Develop costs, spending options, and sequencing options to bring the downtown up to new standards. Complete 4. Develop a design and identify possible locations for a centralized news rack enclosure to accommodate a range of different papers in a consolidated and uniform manner, for Council consideration, and possible funding approval. Complete 5. Assess existing planters in the downtown for condition, including planter box, plant material and irrigation, and develop funding request for the 2010-11 budget to improve appearances. Ongoing 6. Install pedestrian level lighting, repair Mission Style Sidewalk and install other upgraded improvements within selected areas of the Downtown. 6/11 Signage Develop a coordinated program for the City informational and directional signage and recommend implementation plan. 6/11 Solid Waste Identify solid waste issues with the Downtown Association and Chamber of Commerce and develop a work plan to address them. 6/11 Facility Maintenance 1. Provide sidewalk scrubbing service and daily cleanup maintenance work. Ongoing 2. Implement the Downtown Tree Management Plan. Ongoing 3. Complete painting of existing street light poles. 6/11 4. Complete downtown street resurfacing projects. Complete 5. Complete water and sewerline replacements. Complete Status Summary: 80% Complete. The following is a summary of accomplishments and important next steps for this goal. 1. Two Downtown walk-throughs have been conducted in order to understand the most problematic items and the highest priorities for upgrade: one with staff and one with members of the Chamber of Commerce and Downtown Association. An “all hands” meeting was held at the end of November, 2009 to discuss a OTHER IMPORTANT OBJECTIVES E-24 recommended approach to prioritizing and completing the improvements with the resources available to the City. 2. On December 15, 2009, the Council approved the Downtown Parking Space Conversion Process through Resolution No. 10139 (2009 Series). On March 4, 2010, the City’s Sidewalk Café Ordinance became effective. 3. On December 7, 2009, Community Development and Public Works staff presented an update to the Architectural Review Commission on the progress of the goal and looked ahead to reviewing the downtown guidelines in spring 2010. The Architectural Review Commission (ARC) discussed possible new standards for the design of news rack enclosures and trash/recycling receptacles in the downtown at their meeting on March 15, 2010 and April 5, 2010. A preferred design was selected by the ARC on July 19, 2010. Staff is preparing technical drawings and specifications to include as official standards. The standards will be reviewed by the ARC and ultimately be presented for approval by the Council. 4. Staff provided the Council with an update on the beautification efforts near the Wineman Hotel, as well obtained direction on the approach to Downtown improvements on February 23, 2010. 5. A new contract has been approved for the Downtown Sidewalk Scrubbing program, with revisions to allow for more frequent problem area scrubbing. 6. Painting of street light poles and Downtown Tree Management is being combined with other downtown projects to take place in early 2011. The Warden Bridge repair was deleted by the Council. Public Works staff has completed painting traffic signal poles and signal controller boxes in the Downtown. Downtown resurfacing is complete. The parking lot resurfacing project is almost ready for construction; however, businesses affected by the work have requested that construction take place in summer 2011. The Downtown Beautification project is scheduled for advertising in late winter 2011 with Council to make a final determination on project initiation in early spring 2011. 7. Landscape planters surrounding public parking lots have been enhanced with soil amendment, new plants, and repaired irrigation supply under the current Parking Fund budget. 8. The “Way Finding” (directional signage) program was introduced to the ARC on January 10, 2011. The Cultural Heritage Committee will review the sign program on February 28, 2011, with the ARC conducting a final review in the spring of 2011. OTHER IMPORTANT OBJECTIVES E-25 HISTORIC PRESERVATION Objective. Adopt a Historic Preservation Ordinance, and if funding permits in 2010-11, update the City’s inventory of Historic Resources. Action Plan Task Current Revised 1. Review and evaluate draft historic preservation ordinance. Complete 2. Present draft ordinance for discussion with stakeholder groups. Complete 3. Complete public hearings on draft ordinance. Complete If Funding Is Available 4. Contract for Historian and Architect to lead inventory. No funding available 5. Train volunteers. No funding available 6. Conduct historic survey. No funding available 7. Hold public hearings for consideration of nominated properties. No funding available Status Summary: 100% Complete for funded action On November 9, 2010, the Council voted to approve updated language for the Historic Preservation Guidelines, and on December 7, 2010, Council voted to approve a new Historic Preservation Ordinance. City staff worked with several community members to address concerns associated with the draft documents after the Cultural Heritage Committee endorsed the drafts for approval. The Council directed further changes be made and the draft documents received majority support after four Council hearings. To date, no funding has been identified to conduct additional historic surveys or inventories. CARRYOVER GOALS AND OBJECTIVES E-26 The following provides brief status reports on “Other Council Objectives” for 2009-11. Creek and Flood Protection Objective. Advance Mid-Higuera flood protection improvements by seeking Zone 9 funding to complete design, obtain approvals and make progress toward construction as resources will allow. Status Summary: 15% Complete. As recommended by the Zone 9 committee, the Board of Supervisors approved additional funding for the completion of technical studies necessary for the environmental document. The County Environmental Division completed the studies early due to regulatory agency concurrence on species issues. Staff are now working on preliminary design concepts. Skate Park Objective. Develop plans and specifications and seek funding to construct a skate park. Status Summary: 65% Complete. Draft plans for the skate park are presently undergoing the City’s development review process. Consideration of the park plans will occur before the Planning Commission in early winter 2011. Staff submitted a grant application for Proposition 84 funding (2008 Statewide Park Development and Community Revitalization Program) on March 1, 2010 but the City was not awarded a grant. Staff intends to re-apply for “round two” Proposition 84 grants in 2011. Additionally, staff continue efforts to raise funds for the project through a variety of fundraisers including the ongoing “Buy a Brick Build a Dream” campaign for the park. Urban Forest Objective. Update master plan and develop recommendations to renew the urban forest and plant more trees. Status Summary: 100% Complete. The Council approved matching funds to complete a Street & Park Tree Inventory and to purchase software to manage the Street & Park trees in the City. The Tree inventory is now complete, and Urban Forestry staff will use the new software to maintain and update the list. Staff will complete an Urban Forest Management Plan for the trees in the City, including parks, open space, private property and street trees. Staff completed a major replanting to replace trees blown over during the heavy wind storm of October 2009. Staff also replaced trees removed as part of the sidewalk repair program and planted nearly 60 trees as part of a free tree program in fall 2010. Homeless Services Objective. Identify and pursue opportunities to implement the "Ten-Year Plan to End Chronic Homelessness." Status Summary: 30% Complete. The Homeless Services Oversight Council (HSOC) was created on June 2, 2009, and meets monthly in an effort to coordinate the efficient provision of homeless services in the County. The HSOC is envisioned by the “Ten-Year Plan” as an organization that can plan, advise and advocate for homeless services in the County. The City’s Police Chief, Deborah Linden, currently serves as the HSOC Vice-Chair and Council Member Ashbaugh is an HSOC member. The City’s Housing Programs Manager attends meetings as necessary to report on City program activities that improve homeless services. On January 20, 2010, staff made a presentation to the HSOC regarding the Homeless Services Campus proposed for 3451 South Higuera Street, adjacent to the County Department of Social Services. The City has processed entitlements to permit the site as a replacement for the Maxine Lewis Homeless Shelter, and the Airport Land Use Commission approved the site in February 2010. The facility is programmed to provide coordinated homeless services, including day services, overnight shelter, case management and limited health services, consistent with the objectives of the “Ten-Year Plan.” In late October 2010, the Community Action Partnership of San Luis Obispo (CAPSLO) became the project applicant and the organization that will move the campus forward into the next phase. The following summarizes the status of “carryover” Major City Goals and Other Council Objectives from the 2007-09 and 2005-07 Financial Plans. In CARRYOVER GOALS AND OBJECTIVES E-27 several cases, “carryover tasks” have been incorporated into the Major City Goals (or “Other Council Objectives”) for 2009-11, and as such, they are not repeated in this section. MAJOR CITY GOALS Economic Development: Sales Tax and TOT Revenues Objective. Encourage and promote projects and programs that will increase sales tax and transient occupancy tax revenues. Status Summary: 80% Complete. The Economic Development Program continues to highlight businesses and business issues via the City/Chamber of Commerce Business Visitation Program. Work in support of Garden Street Terraces has included renegotiation of the Agreement for sale of parking lot 2 as well as certification of the Final Environmental Impact Report. The project is now being redesigned in accordance with the environmental document. The Chinatown Project received final approvals in November 2009. Although there are new businesses along Monterey Street, within and adjacent to the project, no progress has been made in moving the project closer to construction due to the economic climate. Construction on the Prefumo Creek Commons project and the Target store is well underway. In addition to Target, construction on the new location of the Mac Superstore has begun. Olive Garden, also a part of Prefumo Creek Commons, is expected to follow with entitlements granted soon. The Downtown vacancies continue to persist, including the renovated space in the Wineman Hotel. The economic downturn has proved to be lasting for larger commercial spaces in the downtown with vacancy rates pushing down per square foot rates. OTHER COUNCIL OBJECTIVES Waterways Management Plan Implementation Program Objective. Upon completion of the Waterways Management Plan, adopt an implementation program. Status Summary: 100% Complete. The “Record of Decision” by the Army Corps of Engineers is now complete. Staff is now implementing projects under the program outlined in the Plan. Laguna Lake Dredging Study Objective. Develop options and decide future of Laguna Lake, and begin implementation of approved dredging plan. Status Summary: 100% Complete. The Laguna Lake Environmental Document was approved by Council on December 1, 2009, completing the study phase of this project. Council has directed staff to prepare a budget request for the 2011-13 Financial Plan. Tree Planting and Maintenance Objective. Boost tree planting and maintenance. Status Summary: 100% Complete. The City’s tree crew continues to plant vacant wells as they develop and recently assisted in a second neighborhood tree planting event on Higuera Street. Additional trimming funds allocated as part of the 2007-2009 Financial Plan were reduced for 2008-09 on September 30, 2008 as part of the budget balancing activity. The additional funds were used in 2008-09 to accomplish additional tree trimming. Airport Area Annexation Objective. Annex the Airport Area. Status Summary: 100% Complete for Phase 1A. The Local Agency Formation Commission (LAFCO) completed the annexation process for 626 acres associated with Phase 1A of the annexation area. The map and certificate of annexation was delivered to the State Board of Equalization and the land was officially added to the City boundary on July 25, 2008. Discussion with property owners in the Phase 1B area was conducted in early 2009. The proposed development of the Chevron property will result in an amendment to the Airport Area Specific Plan (AASP). That project is in the Environmental Impact Report (EIR) preparation stage and City and County staff are collaborating in the review of the project. The administrative draft of the EIR, along CARRYOVER GOALS AND OBJECTIVES E-28 with the scope of work for a financing plan, shall be underway in early 2011. Annexation of the Chevron property will provide another key piece of the Airport Area annexation. Discussions with LAFCO staff have indicated that LAFCO would prefer the City pursue annexation of the entire remaining area including the San Luis Obispo County Regional Airport, but would support phased annexations as needed. This issue is significant because several areas of the AASP are not contiguous to existing City boundaries and the only way to bring those properties into the City will be to address the airport property itself. Including the airport may significantly alter the timing anticipated for Phase 1B. Broad Street Corridor Plan Objective. Adopt and implement a plan for South Broad Street corridor planning and improvements. Status Summary: 80% Complete. The focus group that helped develop the plan is still active in the process and has provided input to current projects within the plan area. The detailed traffic study is complete and was reviewed by the Planning Commission. After staff evaluated overall densities associated with reducing development to address traffic impacts, it became clear that amending development densities would result in less development than currently allowed. In addition, Utilities staff identified waste collection system issues that needed to be evaluated to ensure orderly development could occur. Staff is proceeding with subsequent evaluation to ensure the project goal of mixed use and infill development is reflected in the revised draft plan. This may trigger the need for an Environmental Impact Report (EIR). Staff anticipate completing the revised draft in spring 2011, with development of a draft EIR to be completed by fall 2011. STATUS OF MAJOR CIP PROJECTS E-29 Percent Complete 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Railroad Trail: Bridge Over Hwy 101 Water Reclamation Plant Improvements Railroad Trail: Phase 3: Amtrak to Marsh Street Telemetry System Improvements SPRR Freight Warehouse Rehabilitation Santa Rosa Park Restroom Replacement Skate Park Construction Andrews Creek Bypass Bob Jones Trail: Bridge Connections Tank Farm/Broad Intersection LOVR Interchange Downtown Improvements Johnson/Buchon Intersection Higuera Culvert Repair Roller Hockey Rink Expansion Railroad Trail: Phase 4a: Foothill to Cal Poly Downtown Paving: Marsh Street Gateway Paving: Monterey Street Radio System Upgrade Dispatch Center UNDER DESIGN UNDER CONSTRUCTION UNDER STUDY