HomeMy WebLinkAbout06/06/1988, 7 - ADOPTION OF THE 1988-89 BUDGET AND ANNUAL WORK PROGRAM II�HII�@II�IIIII�II� III 11/ f MEETING Q6,
Cly,' osan lues os�spo June 6, 1988
u
COUNCIL AGENDA REPORT N
FROM: William C. Statler, Director of Finance
SUBJECT: ADOPTION OF THE 1988-89 BUDGET AND ANNUAL WORK PROGRAM
CAO RECOMMENDATION
Adopt the attached resolution appropriating funds for the 1988-89 Fiscal
Year and approving the Annual Work Program.
OVERVIEW
The proposed Budget. and Annual Work Program for 1988-89 were formally
submitted for City Council review and consideration at their May 17, 1988
meeting. Based on the City Council 's discussion and comments at that
time, no changes have been made to the proposed Budget and Annual Work
program being submitted for City Council approval at this time.
BACKGROUND
As noted at the May 17, 1988 meeting, the primary policy and financial
guidelines used in preparing the 1988-89 Budget were established in the
1987-89 Financial Plan. In preparation for final adoption of the 1988-89
Budget, the following reviews and meetings have been held with the City
Council:
• Capital project review and
field trip. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .02/09/88
a Mid-year budget review
Including initial 1988-89 revenue
projections submitted to City Council. . . . . . . . . . .03/15/88
0 Financial study session. . . . . . . . . . . . . . . . . . . . . . . . . . .04/11/88
0 Capital improvement plan study session
and review of proposed permanent
personnel additions. . . . . . . . . . . . . . . . . . . . . . . . . . . . .05/02/88
• Review and consideration of the
proposed 1988-89 Budget and
Annual Work Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . .05/17/88
Based on projected revenues and beginning fund balances, adequate
resources are available to fund the proposed non-enterprise expenditures
and to maintain fund balance reserves at policy levels. However, as noted
at the May 17, 1988 meeting and in the 1987-89 Financial Plan, rate
increases will be required in several of the City's enterprise funds (most
notably water and sewer) in order to develop and maintain the financial
resources required to support the City's operating and capital programs in
these areas.
�������N►�►Illlflllll►► ���ll city of San pais OBISPO
COUNCIL AGENDA REPORT
1988-89 BUDGET
As noted at the May 17, 1988 meeting, modest changes (3.7%) are
recommended to the operating programs from the adjusted levels proposed in
the 1987-89 Financial Plan. As also noted at that time, the primary
policy item reflected in the proposed operating budget is the inclusion of
an update to the City's Park and Open Space Element in conjunction with
the current General Plan update. The City Council was supportive of this
concept and authorized the Department of Community Development to initiate
recruitment for a contract planner.
Recommended changes to the Capital Improvements Program reflect the
requests submitted for City Council review at the May 2 and May 17
meetings. During the May 2, 1988 study session , the City Council
requested additional information regarding two proposed projects: site
preparation/demolition at the civic center site after completion of the
new library; and the installation of landscaped medians along Grand
Avenue. In response to this request, a summary of the Facilities Master
Plan and a supplemental report on the Grand Avenue medians have been
distributed to the City Council under separate cover.
It should be noted that the proposed Capital Improvements Program was
reviewed by the Planning Commission on May 11, 1988, at which time they
determined that the proposed adjustments are consistent with the General
Plan.
As reflected in the attached resolution, the following is a summary of the
proposed operating and capital appropriations by major functional area:
Operating Capital
Public Safety. . . . . . . . . . . . .$ 7,479,400 $ 484,000
Public Utility. . . . . . . . . . . . 5,373,800 4,032,000
Transportation. . . . . . . . . . . . 2,482,000 2,760,000
Leisure. Cultural , and
Social Services. . . . . . . . . . 3,028,600 741 ,800
Community Development. . . . . 2,290,900 27,000
General Government. . . . . . . . 2,566, 100 993,000
TOTAL. . . . . . . . . . .$23,220,800 $9,037,800
APPROPRIATIONS LIMIT
Two measures (Proposition 71 and 72) have been submitted for voter
approval on the June 7, 1988 ballot which will change the methodology for
computing the City's Appropriations Limit for. 1988-89 if-adopted. As w
��� ►b►►►�IIIIIi�p �@SII CI-W Of san LPJIs OBISPO
COUNCIL AGENDA REPORT
such, it is recommended that the formal adoption of the City's
Appropriations Limit be deferred until after the results of the ballot
measures are known. However, based on the current methodology for
computing the Appropriations Limit, the City's limit for 1988-89 would be
$17,069,100, which is approximately $900,000 greater than appropriations
subject to limit proposed in the 1988-89 Budget. Although this favorable
variance provides a comfortable margin for 1988-89, it reflects a
continued narrowing of the gap between the City's expenditures and the
limit, which is likely to continue as long as tax revenues grow at a
faster rate than population and cost of living.
ANNUAL WORK PROGRAM
Based on the general direction received at the May 17, 1988 meeting, the
attached 1988-89 Annual Work Program has been prepared for City Council
approval as originally submitted. As noted at the May 17, 1988 meeting,
the 1988-89 Budget reflects the resources required to support the goals
and objectives of the Annual Work Program.
SUMMARY
The proposed 1988-89 operating and capital budget has been prepared using
the 1987-89 Financial Plan as its policy base. Overall , the City's
projected financial position at the end of 1988-89 compares favorably with
original 1987-89 financial plan estimates.
Representatives from the operating departments will be available at the
meeting to respond to any questions or ,concerns that the City Council may
have regarding the proposed changes or modifications to the 1988-89 Budget.
EG88044/TXTELLA
RESOLUTION NO. (1988 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ADOPTING APPROPRIATIONS FOR THE 1988-89 FISCAL YEAR
WHEREAS, the City Council adopted the 1987-89 Financial Plan on
June 30, 1987 which established comprehensive financial and policy
guidelines for the 1987-88 and 1988-89 Fiscal Years; and
WHEREAS, the 1987-89 Financial Plan included appropriation estimates
for Fiscal Year 1988-89; and
WHEREAS, the City Council has reviewed proposed changes to 1987-89
Financial Plan to be effective for Fiscal Year 1988-89 after scheduled
public budget study sessions and hearings held between February 9, 1988
and June 6, 1988; and
WHEREAS, a summary of the City Administrative Officer's recommended
adjustments to the 1987-89 Financial Plan for Fiscal Year 1988-89 is
provided in Exhibit A (Operating Budget) and Exhibit B (Capital Budget)
which are herein incorporated by reference and attached hereto; and
WHEREAS, the City Council has reviewed an Annual Work Program for
1988-89.
NOW, THEREFORE„ be it resolved by the Council of the City of San Luis
Obispo that the Operating and Capital Budget for the Fiscal Year beginning
July 1, 1988 and ending June 30, 1989 as summarized below and referenced
In Exhibits A and B is hereby adopted:
T-4
Resolution No. (1988 Series)
Page 2
1988-89 BUDGET SUMMARY
Operating Capital
Public Safety. . . . . . . . . . . . .$ 7,479,400 $ 484,000
Public Utility. . . . . . . . . . . . 5,373,800 4,032,000
Transportation. . . . . . . . . . . . 2,482,000 2,760,000
Leisure, Cultural, and
Social Services. . . . . . . . . . 3,028,600 741,800
Community Development. . . . . 2,290,900 27,000
General Government. . . . . . . . 2,566,100 993,000
TOTAL. . . . . . . . .$23,220,800 $9,037,800
Further be it resolved that the Annual Work Program for 1988-89 as
provided in Exhibit C and attached hereto is hereby approved.
On motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of
1988.
MAYOR RON DUNIN
ATTEST:
CITY CLERK PAM VOGES
APPROVED:
VAdmnistrative Officer/Y
Director of Finance
�'
EXHIBIT A
CITY OF SAN LUIS OBISPO 1988-89 OPERATING BUDGET .
1987-89 RECOMMENDED PROPOSED
FINANCIAL PLAN* ADJUSTMENTS 1988-89
-------------------------------------------------------------------------------------------
Public Safety:
Police Protection. . . . . . . . . . . . . . . . . . . . 4,072,100 34,800 4,106,900
Fire & Environmental Safety. . . . . . . . . . 3,283,400 34,000 31317,400
Disaster Preparedness. . . . . . . . . . . . . . . . 55,100 0 55,100
Public Utilities:
Water Service. . . . . . . . . . . . . . . . . . . . . . . . 3,303,900 218,700 3,522,600
Wastewater Service. . . . . . . . . . . . . . . . . . . 1 ,150,300 43,100 1 ,193,400
Whale Rock Reservoir & Fishing. . . . . . . 415,100 234,200 649,300
Special Assessment Districts. . . . . . . . . 8,500 0 8,500
Transportation:
Streets/Flood Control. . . . . . . . . . . . . . . . 11318,100 15,000 11333,100
Parking Operations & Maintenance. . . . . 340,000 32,500 372,500
Parking Enforcement. . . . . . . . . . . . . . 72,100 0 72,100
Municipal Transit System. . . . . . . . . . . . . 513,600 0 513,600
Vehicle & Equipment Maintenance. . . . . . 190,700 0 190,700
Leisure, Cultural , and Social Services:
Parks and Recreation:
Recreation and Aquatic Programs. . . . 1,323,200 0 1,323,200
Landscape, Parks, & Swim Center
Maintenance. . . . . . . . . . . . . . . . . . . 860,100 0 860,100
Tree Maintenance. . . . . . . . . . . . . . . . . . . . . 211 ,700 0 211 ,700
Golf Course. . . . . . . . . . . . . . . . . . . . . . . . . . 208,900 6,600 215,500
City/County Library. . . . . . . . . . . . . . . . . . 5,000 0 5,000
Community Promotion. . . . . . . . . . . . . . . . . . 220,000 0 220,000
Human Relations. . . . . . . . . . . . . . . . . . . . . . 193,100 0 193,100
Community Development:
Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789,000 129,000 918,000
Construction Development:
Engineering. . . . . . . . . . . . . . . . . . . . . . . . 709,900 6,700 716,600
Construction Regulation. . . . . . . . . . . . 487,800 30,000 517,800
Economic Development -
Business Improvement Area (BIA) . :. . 111 ,000 27,500 138,500
General Government:
City Council. . . . . . . . . . . . . . . . . . . . . . . . . 78,800 0 78,800
General Administration. . . . . . . . . . . . . . . 285,700 0 285,700
Legal Services. . . . . . . . . . . . . . . . . . . . . . . 171,400 0 171,400
City Clerk. . . . . . . . . . . . . . . . . . . . . . . . . . . 205,500 0 205,500
Finance Administration. . . . . . . . . . . . . . . 478,600 0 478,600
Personnel Administration. . . . . . . . . . . . . 276,000 0 276,000
Public Works Administration. . . . . . . . . . 215,500 7,200 222,700
Buildings (Operations & Maintenance) . 357,600 15,000 372,600
Non-Departmental. . . . . . . . . . . . . . . . . ... . . 474,800 0 474,800
-------------------------------------------------
Total. . . . . . . . . . . . . . . . . . . . . . . . . 22,386,500 834,300 23,220,800
aaaaaaaasaaaaaaaaaaaaaaaaaaaaaaaasaaaaaaaaaaaaaaa
s Adjusted to reflect approved Memorandums of Understanding
and other salary changes scheduled for 1988-89. +
EXHIBIT B
CITY OF SAN LUIS OBISPO • 1988-89 CAPITAL IMPROVEMENT BUDGET
1987-89 PROPOSED PROPOSED
FINANCIAL PLAN CHANGE 1988-89
----------------------------------------------------------------------------------------
Public Safety:
Fire & Environmental Safety. . . . . . . 484,000 0 484,000
Public Utilities:
Water Service. . . . . . . . . . . . . . . . . . . . . 2,987,000 0 2,987,000
Wastewater Service. . . . . . . . . . . . . . . . 0 1 ,045,000 1 ,045,000
Transportation:
Streets/Flood Control. . . . . . . . . . . . . 2,192,000 508,000 2,700,000
Parking Operations & Maintenance. . 0 60,000 60,000
Leisure, Cultural, and Social Services:
Parks and Recreation. . . . . . . . . . . . . . 352,000 242,300 594,300.
Cultural Facilities. . . . . . . . . . . . . . . 38,500 0 38,500
Golf Course. . . . . . . . . . . . . . . . . . . . . . . 109,000 0 109,000
Community Development:
Planning. . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 0 15,000
Cultural Heritage. . . . . . . . . . . . . . . . . 0 12,000 12,000
General Government:
Administration. . . . . . . . . . . . . . . . . . . . 67,000 0 67,000
Buildings. . . . . . . . . . . . . . . . . . . . . . . . . 846,000 80,000 926,000
-------------------------------------------------
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . 7,090,500 1 ,947,300 9,037,800
vaaaasvavaaaaaavavasaaaaavasavaaavavaaaaaaaavvaaa
• �I I
EXHIBIT C
1988 - 1989
AMJAL WORK PROGRAM
GOALS AND OBJECTIVES
I. Provisions for Resources and Services
A. Develop and implement a plan for obtaining supplemental
water resources.
B. Continue implementation of the Wastewater Management Plan
Including upgrading the plant and collection system
providing for beneficial use of the treated effluent.
II. Health and Safety
A. Review revised Flood Management Policy.
B. Review and adopt a Fire Master Plan.
C. Review and adopt a Five-Year Police Services Plan.
III. Parking. Circulation and Public Transportation
A. Implement and monitor the Parking Management Plan.
IV. Housing
A. Participate in the development of a Homeless Program in
collaboration with the County, other public entities, the
private sector, and service providers.
V. Beautification. Recreation and Cultural Development
A. Support three-party agreement to develop a performing arts
facility at Cal Poly. Explore feasibility of increasing
the Lodging tax by two to three percent.
B. Encourage and support a voluntary program for "art in
public places" including city matching funds. .
C. Develop and implement a pilot donor tree-planting program,
specifically in and around the Laguna Lake Park area and
provide a means to recognize donors.
D. Continue improvements and beautification of Mission Plaza
(amphitheater) .
E. Encourage and support private efforts to beautify downtown.
VI. Planning Issues
A. Review and adopt a comprehensive revision to the General
Plan including: land use; circulation; parks and open
space; . annexation; and downtown strategy.
B. Review and adopt the Airport Area Specific Plan.
C. Review and adopt a Facility Master Plan, including a
development program for additional space for activities at
City Hall.
VII . Fiscal Independence
A. Review and implement the Financial Services Plan, including
a revision to the business tax ordinance: consideration of
fees and charges; and updating of the Strategic Planning
program.
B. Support and implepoent a development project for Court.
Street.
VIII . City Council and Administration
A. Participate in an organizational development program for
the City Council and Management Team.
B. Continue joint meetings with Advisory Bodies to improve
communication and to review the activities and roles of the
advisory bodies.
C. Continue participation in the Cal Poly Liaison Committee to
improve community/university relations.
D. Establish a Charter Committee to review and recommend
revisions to the City Charter.
E. Review and modify the City Council's policies and
procedures.
F. Evaluate the Volunteer Program and adopt a policy to
encourage expanded use of volunteers.
EG88043/TXTELLA