HomeMy WebLinkAboutItem 6e. Approve FY 2022-23 Budget Amendment and ongoing Budget Allocations for the 2023-25 Financial Plan Item 6e
Department: Finance
Cost Center: 2002
For Agenda of: 3/7/2023
Placement: Consent
Estimated Time: N/A
FROM: Derek Johnson, City Manager
Prepared By: Emily Jackson, Finance Director
SUBJECT: APPROVE FY 2022-23 BUDGET AMENDMENT AND ONGOING BUDGET
ALLOCATIONS FOR THE 2023-25 FINANCIAL PLAN
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the Council of the City of San Luis
Obispo, California, approving an amendment to the adopted 2022-23 Budget
Appropriations and the 2023-25 Financial Plan.”
POLICY CONTEXT
As set forth in the City Charter Section 804, the Council may amend or supplement the
budget at any time after its adoption by a majority vote of the Council members.
DISCUSSION
Background
As part of the development of the 2021 -2023 Financial Plan, the City allocated one-time
budget to fund critical services in support of Major City Goal objectives. Staff created a
list of one-time budget allocations that are essential and critical items that support
operations and Major City Goal objectives (Attachment A – Exhibit A) and presented it to
Council with the 2022-23 Mid Year Review on February 7, 2023. At the Goal Setting
Workshop held on February 11, 2023 Council adopted the same four Major City Goals
and took action to make this list of one-time items ongoing. This report and the attached
resolution memorialize Council’s action.
Although the 2023-25 Financial Plan will not be adopted until June 2023, action to
approve this resolution will convert the current contract positions into ongoing full-time
equivalent positions immediately. The budget amounts listed in Exhibit A are subject to
change slightly depending on incumbents that are currently in the positions; however, any
changes will not have a significant impact on the General Fund.
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Item 6e
Water Resources Position (1 FTE)
On November 15, 2022, and on February 7, 2022, Utilities Department staff provided the
City Council with information related to the process for maximization of recycled water
resources. During these presentations, staff indicated that additional resources would be
required to complete work related to both short-term and long-term recycled water
maximization. The current request is to add one additional FTE to the Water Fund in the
Water Resources section. In addition to support for recycled water maximization, the
position will also provide ongoing support to the section’s functions in the following areas:
1. Sustainable Groundwater Management Act (SGMA) compliance
2. Groundwater treatment and pumping improvements
3. In-City recycled water program expansion and management
4. New water conservation regulation compliance
5. Cross control connection program compliance
6. Potable reuse and groundwater recharge planning
7. Water loss regulation compliance
Previous Council or Advisory Body Action
February 7, 2023 – Staff asked Council to provide direction on whether the one-time
budget allocations from the 2021-23 Financial Plan listed in Attachment A – Exhibit A
should be considered as ongoing expense and included in the base budget for 2023 -25.
Council directed to continue the discussion to the Council Goal Setting Workshop on
February 11, 2023.
February 11, 2023 – Council provided the direction that the one -time budget allocations
listed in Attachment – Exhibit A should be included in the base budget for the 2023-25
Financial Plan.
Public Engagement
Public comment on the item can be provided to the City Council through written
correspondence prior to the meeting and through public testimony at the meeting. The
Mid-Year Report has also been posted on the City’s website for public review.
CONCURRENCE
The City’s internal Financial Plan Steering Committee has met on multiple occasions and
concurs with the recommendations included in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under CEQA
Guidelines Sec. 15378.
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Item 6e
FISCAL IMPACT
Budgeted: No Budget Year: 2023-25 Financial Plan
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
(Beginning in
FY 2023-24)
General Fund $ $ $ $1,822,586
State
Federal
Fees
Other: Water
Fund $ $ $ $98,027
Total $ $ $ $ 1,920,613
There is no fiscal impact in the current year because the proposed additional FTEs and
other operating expenditure lines are already budgeted in FY 2022 -23. Moving forward,
these items will be included in the base budget for the 2023-25 Financial Plan. Based on
the updated General Fund five-year forecast presented with the 2022-23 Mid-Year
Report, there is sufficient budget to fund the items listed in Attachment A – Exhibit A on
an ongoing basis and the $1.82 million budget assumption was included in the fo recast.
The creation of a new position within the Water Resources section has been included in
the Water Rate Analysis that is currently being conducted for the 2023-25 Financial Plan.
Ongoing fiscal impacts for the creation of this position will be fund ed by water rates and
are estimated to equal $98,027 per year. The fiscal impact for the remainder of the 2022 -
23 fiscal year amounts to $22,622, which will be funded through salary savings.
ALTERNATIVES
The Council could direct staff to not implement the proposed budget change
recommendations. Should the adjustments not be approved, the budget will remain
unchanged at the adopted budget levels. Staff does not recommend an unchanged
budget due to changing needs of the community and the City organization . These ongoing
resources are needed to meet identified Council and Community priorities.
ATTACHMENTS
A - Draft Resolution approving an amendment to the adopted 2022 -23 Budget
Appropriations and the 2023-25 Financial Plan.
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R _____
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING BUDGET APPROPRIATIONS
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City
Manager has submitted the 2021-23 Budget Supplement to the Council for review and
consideration on June 7, 2022; and
WHEREAS, the Council appropriated the 2022-23 budget allocation including
operating, debt service, and capital improvement plan budgets; and
WHEREAS, in accordance with San Luis Obispo Charter Section 804, the Council
may amend or supplement the budget at any time after its adoption by a majority vote of
the Council members; and
WHEREAS, as part of the development of the 2021-2023 Financial Plan, the City
allocated one-time budget to fund critical services in support of Major City Goal objectives;
and
WHEREAS, staff presented a list (Exhibit A) of one-time budget allocations that
are essential and critical items that support operations and Major City Goal objectives to
Council with the 2022-23 Mid-Year Review on February 7, 2023; and
WHEREAS, during the 2023-25 Goal Setting Workshop on February 11, 2023,
Council directed staff to return with recommended council actions to include one-time
budget allocations as ongoing and to include in the 2023-25 base budgets.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The budget allocations listed in Exhibit A will be included in the 2023-
25 Financial Plan as ongoing budget items.
SECTION 1. The budget allocation for an additional Water Resources position will
be included in the 2023-25 Financial Plan.
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Resolution No. ____ (2023 Series) Page 2
R _____
SECTION 2. The City will add nine Full-Time Equivalent (FTE) positions as a result
of the budget appropriations listed in Exhibit A and the approval of a Water Resources
Position.
Upon motion of ___________________, seconded by
_______________________, and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on the ____ day of ___________, 2023.
______________________________
Mayor Erica A. Stewart
ATTEST:
Teresa Purrington,
City Clerk
APPROVED:
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, on ______________________.
________________________________
Teresa Purrington,
City Clerk
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Exhibit A
R _____
Ongoing Budget Allocations to Include in the 2023-25 Financial Plan
1 Admin/IT
2 Arts, Culture and Community Partner Support $ 25,000
3 City 101/Community Academy $ 15,000
4 DEI Civic Spark Fellows $ 30,000
5 DEI High Impact Grants $ 150,000
6 ECOSLO partnership - SLO Stewards, Tree Planting & Maint., Green Business, Creek
Clean Up $ 20,000
7 Sustainability & Natural Resources Analyst (1 FTE) $ 115,000
8 CDD
9 25% Expansion of 40 Prado HSC Beds - Proportion City share to County contribution $ 63,826
10 Housing/Homelessness Assistant (1 FTE) $ 86,000
11 Finance
12 MOTION Subject Matter Expert (Supplemental Staffing) $ 35,568
13 Fire
14 Fire Intern Program $ 23,257
15 Human Resources
16 Intern Funding $ 16,364
17 Classification and Compensation Support $ 43,500
18 Centre for Organization Effectiveness $ 40,000
19 Parks & Rec
20 Volunteer Coordinator (1 FTE) $ 102,000
21 Public Works
22 Increased Trash and Recycling Services in Public Spaces $ 165,000
23 Supplemental Street and Parklet Sweeping $ 250,000
24 Transportation Interns $ 31,071
25 Plant Material and Supplies for Parks Beautification Gardener $ 25,000
26 Contract Coordinator (1 FTE) $ 106,000
27 Police
28 Community Services Officers (4 FTE) $ 480,000
29 Total $ 1,822,586
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