HomeMy WebLinkAbout6/1/2021 Item 6a, BaraschSan'L,uis Obispo
Property Own,ers Association
P.O, Box 12924
San Luis abispoi CA 93406 f
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TO: The San Luis Obispo City Council and Senior Staff Members c/o The City Clerk's Office
FROM: San Luis Obispo Property & Business Owners Association Board of Directors on May 25, 2021
The 25 year-old San Luis Obispo Property and Business Association (SLOPBOA) has analyzed the city
budgets in depth for nearly twenty years and has sounded the alarm over and over again regarding the
burgeoning pension obligations and continued growth in city spending. In response to the latest news
from the City of San Luis Obispo regarding our city' s goals and future financial plans, we offer the
following comments and observations:
Our City Must Live Within Its Means. We continue to spend, and plan to spend more, on all
manner of desirable projects and services while going deeper and deeper into debt. This is what
we have been doing for the pastfifteen years and largely how we have gotten into the current
situation. The city is now technically insolvent (The city currently has more liabilities than
assets).. We cannot incur more long term debt to service perceived short term goals and needs
without putting our city in financial jeopardy.
Paying Down our Staggering Municipal Debt while Keeping Adequate Available Funds in
Reserve, should be our First Priority. Our CalPERS debt is currently over $165,000,000 and
growing, and the city currently has significant additional bond indebtedness for our existing
parking structures, and from several more recent capital improvement projects. In addition to
the city's significant indebtedness, we are experiencing a period of extremely low investment
returns.
We Must Distinguish "Wants" (Desires) from True "Needs" (Necessities). A review of the new
proposed city budget includes policies that create new debt that may be difficult to service.
Many of these desires are beneficial to the community, but at some point, we must put the
brakes on what is really unnecessary spending in light of the current recession.
Let's focus on the Basic Services our Local City Government Must Provide. This includes
infrastructure such as streets and sidewalks; parks; and public safety services. Unless seasonal
or feel -good programs can be determined to be cost -neutral or within a narrow percentage of
such, it is time to re-evaluate them during this period of economic uncertainty.
The Cumulative Financial Impacts of the Current Health Pandemic that have come on the heels
of "the Greatest Recession since the'Great Depression" are NOT fully known. Therefore, the
City of San Luis Obispo must begin to shore up its lost revenues for the immediate future before
committing anticipated future revenues on anything but essential city services and/or
emergency infrastructure -related projects that may arise.
SLOPBOA'S Recommendations may be "Unpopular" with Certain Community Members, but
the Results will Insure a Fiscally Solvent, Forward Looking Community with Available Funds to
Implement Innovative Policies and Projects.
The San Luis Obispo Property and Business Owners Association would appreciate a continued
serious dialog with both members of the SLO City Council and the senior management staff to
more fully explore the realistic financial options our city is now reviewing in an era of decreasing
municipal revenues and ever-rising, municipal expenses by contacting either Leslie Halls (805)
235-9641 (awallis 124 mail,com) or Steve Barasch at (805) 544-2600 (barn charc aol.com).
ity of San Luis Obispo, CA: City Council Public Hearing https://mail.aol.com/webmail-std/en-us/PrintMessage
From: webmaster@slocity.org,
To: barascharc@aol.com,
Subject: City of San Luis Obispo, CA: City Council Public Hearing
Date: Thu, May 20, 2021 9:01 am
yCouncil
Post Date: 05/20/2021 8:39e AM
The San Luis Obispo City Council invites all interested persons to participate in a public meeting on
'Biesday, June 1, 2021, at 6:01O P.M. While the Council encourages public participation, growing,
concern about the COVID49 partdemic has required that public mee ngs be held via teleconference.
Meetings can be viewed on Goveimment Access Channel 20 or streamed live from the City's
You'halbe Channel at httP://y'outube«slo.city. Public comment, prior to the start of the meeting, may
be submitted in writing via U.S. Mail delivered to the City Clerk's office at 990 Palm Street, San Luis
Obispo, CA 93401 or by email to emailcouncilC&sloci y.org.
Public Hearing Item:
A Public Hearing to consider adopting the 2021-23 Financial Plan. After extensive community
participation and several Council budget workshops and hearings beginning in November 2020, the
2021-23 Financial Plan is now ready for adoption. Key elements of the Financial Plan include:
1. Focus on long-term fiscal health, aligned with Fiscal and Budget Policies and Financial
Responsibility and Sustainability Philosophy.
2. Align budget resources with Council adopted Major City Goal strategies.
3. Meet the minimum fund balance and working capital policy requirements.
4. Invest in the future and fund maintenance"of existing infrastructure and invest in the capital
improvement program.
5. Address both required and "pre" payments to unfunded liabilities.
6. Implement Local Revenue Measure priorities. '
For more information, contact Brigitte Elke, Finance Director, for the City's Finance Department at
(805) 781-7125 or by email, belke@slocity.org.
The City Council may also discuss other hearings or business items before or after the items listed
above. If you challenge the proposed project in court, you may be limited to raising only those issues
you or someone else raised at the public hearing described in this notice, or in written correspondence
delivered to the City Council at, or prior to, the public hearing. ,
The report of this item has been distributed in advance to allow more time for review, and can viewed
in the "i '" o ekk chronic rcliive. All other reports for this meeting will be available for review online at
www.slocity.org no later than 72 hours prior to the meeting. Please call the City Clerk's Office at (805)
781-7100 for more information. The City Council meeting will be televised live on Charter Cable
Channel 20 and live streaming on the Ci.ty's Y+ouTube channel https://youtube.slo.city.
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