HomeMy WebLinkAbout3/17/2020 Item 15, Elke
Council Agenda Correspondence
City of San Luis Obispo, Council Memorandum
DATE:March 16, 2020
TO:City Council
FROM: Brigitte Elke,Finance Director
Shelly Stanwyck, Assistant City Manager
VIA:Derek Johnson, City ManagerDJ
SUBJECT:ITEM 15–AUTHORIZE THE USE OF FY 2018-19UNDESIGNATED FUND
BALANCE FOR ONE-TIME BUDGET ALLOCATIONS AND A
RESOLUTION FORMALLY ADOPTING THE FEDERAL EMERGENCY AND
FEDERAL GRANT PROCUREMENT PROCEDURES
Current Agenda Item 15.
At the City Council meeting on Tuesday, March 17, 2020, the Council is scheduled to review the
allocation of one-timefundingto FY2019-20 operating budgets. This funding is available from
FY 2018-19 year-end General Fund balance above required reserve levels. Item 15 outlines the
recommended use of the funding.
Rapidly Evolving Conditions
Since the release of the Council agendaand this reportresponse tothe spread of COVID-19 have
ramped up exponentially. We arenow atunprecedented and evolvingemergency levels of
response based on the Governor’s proclamation,theCouncil’s proclamation,and the City’s
response to keep the community and staff safe.
At this time, staff is modeling fiscal scenarios to better assess financialramificationsgiven the
anticipateddownturn inTransient Occupancy and Sales Taxesand the possibleeffectson the
City’s long-term fiscal outlook.In the coming weeks we will be monitoring these unprecedented
impacts to the City as an organization and a community of businesses, employers, employees, and
visitors. We will be preparing for our recovery.
Staff Recommendation
In order to respond to any and all emergency measures and activities associated with COVID-19
staff recommends waiting on theassignment of available fund balance.
Since changes and developments associated with COVID-19and theglobal response to stop the
spread are occurringdaily,and the outcomesaredifficult to predict, staff recommends to wait with
any allocationsto current budget and keep availableunassigned fund balance in the amount of
$6,185,574for emergency measuresor until such time as the long-term effects of the current state
of emergency can be better assessed.
Insert Report TitlePage 2
In order to have flexibility to respond quickly to the COVID-19crisis, staff further recommends
that Council adopt a resolution(Attachment A) to allow the City Manager to utilize the funding as
appropriate to:
1.Address any and all emergency measures necessary in response to COVID-19tomaintain
the public’s health and safety and addressand mitigatelong-term fiscal ramifications.
2.Funduses as recommended in the published staff report, should the funding not be needed
to address emergency measures or long-term fiscal ramifications due to COVID-19.
AttachmentA: City Council Resolution
RESOLUTION NO. _____ (2020SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, GIVING AUTHORITY TO THE CITY
MANAGER TO USE FY 2018-19 UNASSIGNED FUND BALANCE ABOVE
REQUIRED RESERVE LEVELS.
WHEREAS,the City presently hasFY 2018-19 unassigned fund balance in the amount of
$6,185,574;
WHEREAS,since the publication of the Council’s March 17, 2020 agenda report, the
State of California, the County of San Luis Obispo, and the City of San Luis Obispohave declared
a state of emergency in response to the spread of the virus known as COVID-19; and
WHEREAS,emergency measures are anticipated to be needed at a yet to be determined
level in order to respond to COVID-19 to assure the health andsafety of the community, staffand
the City; and
WHEREAS,the short-and long-term effects of the emergency on the current budget and
long-term fiscal outlook cannot yet be determined.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1.The City Manager is hereby authorized to utilize $6,185,574 in unassigned
FY2018-19 fund balance for the following purposes:
A.)Any and all emergency measures required to assure public health and safety in response
to the COVID-19 health emergency.
B.)To address and mitigate the long-term fiscal ramifications due to the COVID-19 health
emergency.
C.)Make additional one-time payments to CalPERS as determined responsible given the
City’s long-term fiscal outlookwhen it is better known.
D.)Allocate budget to FY 2019-20 and FY 2020-21 as outlined in the staff report from
March 17, 2020, if the funding is not otherwise required to respond to the COVID-19
health emergency or to preserve the long-term fiscal health of the City.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2020.
R ______
Resolution No. _____ (2020Series)Page 2
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________,2020.
____________________________________
Teresa Purrington
City Clerk
R ______