HomeMy WebLinkAbout06/17/1997, 1C - ADOPTION OF 1997-99 FINANCIAL PLAN Council
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C I T Y OF SAN LUI S O B I S P O
FROM: John Dunn, City AdministrativeOffic
Prepared By. Bill Statler,Director of Finance
Carolyn Dominguez,Accounting Manager
SUBJECT: ADOPTION OF 1997-99 FINANCIAL PLAN
CAO RECOMMENDATION
■ Adopt a resolution approving the 1997-99 Financial Plan and appropriating funds for
fiscal year 1997-98.
■ Approve carrying-over $40,000 in CDBG funding for homeless services center
operations from 1996-97 to 1997-98.
DISCUSSION
Beginning in December of 1996, nine budget workshops and hearings were held by the Council
before the Preliminary 1997-99 Financial Plan was issued by the City Administrative Officer
(CAO) on May 12, 1997. Since then, the Council has held four public workshops and hearings
to review and discuss the content of the Plan. In response to Council direction received at these
hearings,the following is a summary of proposed changes to the Preliminary Financial Plan:
Expenditures
The following summarizes operating program and capital improvement plan (CIP) changes
directed by the Council:
Operating Program Changes
1997-98 1998-99 Total
Enhanced neighborhood services 25,700 4,300 30,000
Homeless Shelter Operation 38,200 0 38,200
TOTAL $63,900 $49300 $68400
Capital Improvement Plan Changes
1997-98 1998-99 1999-00 2000-01
Police vehicle rephasing 40,000 (20,000) (20,000)
Patrol vehicle replacement 319,000
Water supply mitigation 350,000
Corporation yard warehouse 150,000 (150,000)
TOTAL $409000 1 $330,000 $1509000 $149,000
Council Agenda Report—Adoption of 1997-99 Financial Plan
Page 2
The following briefly summarizes the proposed changes for the neighborhood and homeless
services programs:
■ Enhanced neighborhood services. Expanding the current neighborhood services
program will cost an additional $25,700 in 1997-98 and $4,300 in 1998-99. This
augmentation will be in addition to the $5,700 previously requested annually to expand
public outreach efforts. While these enhanced resources are likely to be used in some
combination for expanding the "Working to Improve our Neighborhoods" (WIN)
program, initiating a neighborhood walk program, and more formally assessing
neighborhood needs (perhaps through the use of a survey), the specific allocation of
funding will be finther reviewed by staff and neighborhood representatives, and a
recommendation provided to the Council by September of 1997. The work program for
this major City goal will reflect this change in the final budget document.
■ Homeless shelter operations. Ensuring full operation of the homeless shelter during
1997-98 will cost an added $38,200. As the Council is aware, the State has reduced
funding for the shelter from $122,000 to $45,500, resulting in a shortfall of$76,500 for
1997-98. Under commitments made by the State to the EOC, this "bridge" funding
should only be needed in 1997-98.
As requested by the Council, we have reviewed the collective effort to-date (including
the materials presented to the Council on June 3 by Lillian Judd of the EOC) to reverse
what we believe is an extremely poor decision by the State Department of Community
Development. In addition, attached is a chronology of the entire effort prepared by Ms.
Judd. Based on this information, we have concluded that a change in this decision for
1997-98 is highly unlikely. This conclusion was reinforced by a follow-up discussion
with Senator O'Connell on June 4, who expressed his belief that there is very little
possibility of changing this situation for 1997-98. As requested by the Council, we have
separately distributed a compilation of the notes provided to the Council over the past
several months apprising them of this funding problem.
In summary, "no stones have been left unturned" in the effort to change the funding
status for this program for 1997-98. Accordingly, in order to ensure fill operation of this
important facility during 1997-98, we recommend approving the EOC's request that the
City fund 50% of the $76,500 shortfall for 1997-98 ($38,200), contingent upon the
County paying the other half. Before making any supplemental payments, we will return
to the Council with an amended agreement with the EOC, and confirmation that the
County has agreed to fund their share. Additionally, we will work closely with the EOC,
our State legislators and others to ensure that the State honors its commitment to allow
the shelter to apply for the competitive funding stream in 1998-99.
■ Homeless services center operations. The State's poor funding decision also affects the
homeless services center, resulting in a one-time need for funding of$47,000 in 1997-
98. Again, based on commitments made by the State that they will not repeat this same
poor decision in 1998-99, supplemental `bridge" funding should only be needed for one
year. To address most (but not all) of this funding shortfall, we recommend carrying-
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Council Agenda Report—Adoption of 1997-99 Financial Plan
Page 3
over into 1997-98 $40,000 in unused City CDBG funds allocated in 1996-97 for
homeless services center operations. In conjunction with the $40,000 already approved
for operations in 1997-98, this will provide $80,000 to assist in funding homeless
services center operations for 1997-98. We believe the other partners in this program
should fund the remaining $7,000 shortfall. Before spending these finds, we will return
to the Council with a revised operating agreement that identifies the funding source for
this ruining amount.
Revenues
■ Planning fees. The Preliminary 1997-99 Financial Plan proposed implementing fees for
selected planning services where we do not currently assess any charges at all. Staff
recommended setting fees at: 25% of costs for sidewalk sale permits, Christmas
tree/pumpkin lot permits, fence height exceptions, voluntary lot mergers and agreements;
and at 7%of costs for appeals. At the May 19 budget workshop,the Council decided not
to consider implementing an appeal fee at this time. This reduces projected General
Fund revenues by$3,400 per year.
■ "Third" fire safety inspection fee. The Preliminary 1997-99 Financial Plan also
recommended establishing a fee for when a "third" follow-up fire safety inspection is
required. The original estimate for this was $15,000 annually based on the current level
of"third"inspections performed. In finther evaluating this revenue estimate, we believe
that this new fee is likely to increase initial compliance (a positive outcome), and will
reduce the volume of additional inspections over time. Accordingly, we have reduced
the revenue projection for this service to $10,000 in 1997-98 and$5,000 in 1998-99.
SUNU IARY
Incorporating the changes discussed above results in 1997-99 Financial Plan appropriations of
$65.3 million in 1997-98 and$49.9 million in 1998-99 summarized as follows:
Expenditures by Type
1997-98 1998-99
Operating Programs 1 33,650,100 33,316,300
Capital Improvement Plan 25,889,100 9,449,200
Debt Service 5,753,200 7,223,900
TOTAL $65,292,400 $49,989,400
ATTACHMENTS
■ Resolution approving the 1995-97 Financial Plan and appropriating funds for 1997-98
■ Chronology of funding efforts for the homeless shelter and services center
G:\groups\fmance\budget97\adopt97_99.car
/e 3
RESOLUTION NO. (1997 SERIES)-
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING THE 1997-99 FINANCIAL PLAN AND
APPROPRIATING FUNDS FOR THE 1997-98 FISCAL YEAR
WHEREAS, the City Administrative Officer has submitted the 1997-99 Financial Plan to
Council for their review and consideration in accordance with budget policies and objectives
established by the Council; and
WHEREAS, the 1997-99 Financial Plan is based upon public comment and direction of the
Council after scheduled budget study sessions and public hearings,
NOW,THEREFORE,be it resolved by the Council of the City of San Luis Obispo that the
1997-99 Financial Plan is hereby approved and that the operating, debt service and capital
improvement plan budget for the fiscal year beginning July 1, 1997 and ending June 30, 1998 is
hereby adopted as follows:
Operating programs $33,650,100
Debt service 5,753,200
Capital improvement plan 25,889,100
TOTAL $65,292,400
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 June, 1997.
Mayor Allen Settle
ATTEST:
City Clerk
APPROVED:
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JUN-06-97 FRI 13;24 EOC FAX NO. 8055498388 P. 02
June 6, 1997
TO: Ken Hampian, City of San Luis Obispo
FROM: Lillian Judd, EOC Homeless Services
RE: Synopsis of Communication re 97-98 FESG Funding
This is the chronology of interaction on the FESG funding that I can reconstruct
from my files and notes. In addition to countless telephone calls made by EOC, calls
were made by Dana Lilley to the LA and SF HUD offices and by Jim Gardiner to
Carol Whiteside and Dean Shelton in Sacramento. On-going updates on this
funding dilemma were presented at the weekly Prado Day Center Executive
Committee meeting attended by Jim Gardiner and Wendy George.
This funding crisis occurred because:
HCD made their eligibility decision too quickly (between 11/22/96 and
12/17/96 per HCD) without appropriate input from those most severely
impacted — the counties and local service providers;
HCD then implemented their new eligibility rule too quickly without
allowing a transition or grace period for counties and local service providers
to mitigate the impact.
To put a human face on our dilemma, we can't put homeless people "on hold" for a
year while bureaucratic problems are worked out. Entitlement counties and our
homeless community members should not suffer the consequences of this flawed
process.
PARTIES INVOLVED IN FESG COMMUNICATION:
SLO Couaty:
Dana Lilley, Senior Planner, SLO County
Ann Travers, Homeless Services Coordinator, SLO County
Jim Gardiner, Police Chief, SLO City
Marianne Kennedy, Executive Director, Women's Shelter Program
Eileen Allan, Executive Director, North County Women's Shelter
Biz Steinberg, Executive Director, EOC
Lillian Judd, Acting Director, EOC Homeless Services
SLO County elected representatives and stafh
Assemblyman Tom Bordonaro
State Senator Jack O'Connell
Tara Getty, Field Representative for O'Connell
U.S. Representative Walter Capps
Lisa Moreno, Director of Legislation for Capps
Other elected officials and staff_
Governor Pete Wilson
Dean Shelton, Governor's Liaison to Law Enforcement
Carol Whiteside, Office of Governor
David French,.Assistant to Whiteside
JUN-06-97 FRI 13:24 EOC . FAX N0. 80F`198388 P. 03
Housing and Community Development(HCD):
Ken Peterson, FESG Coordinator
Tom Bettencourt, Homeless Programs Manager
Wayne Walker, Branch Chief
Lita Flores, Chief Deputy
Richard Nelson, Deputy Director
Paul Deiro, Director of Legislation
Richard Mallory, Director
Karen Bianchi, Assistant to Mallory
Community Services and Development (CSD):
Michael Micciche, Director
Dorcas Reyes-Fernandez, Field Representative
Housing and Urban Development (HUD):
Pieter Severynen, CPD Representative, LA HUD office
SYNOPSIS OF COMMUNICATION RE FESG FUNDING CRISIS:
12/17/96 EOC received `Interested Parties" form letter from Peterson and
Bettencourt, regarding the FESG 1997 RFP timeframes, procedure to
request an application, and =ortunity to comment on pro osed
changes. Attached to that letter was the list of counties eligible to apply
for the competitive FESG allocation; San Luis Obispo County was not
included. Comments about this eligibility decision were due 1/13/97.
1/10/97 Kennedy sent written comments to "Program Manager" protesting
impact of this change with copies to Lilley, Travers, Bordonaro,
O'Connell.
1/12 Steinberg/Judd sent written comments to 'Program Manager"
protesting impact of this change with copies to Lilley, Travers,
Bordonaro, O'Connell.
1/24 Kennedy wrote to O'Connell with copies to Travers, Allan, Judd.
1/31 Bordonaro wrote to Flores.
2/3 EOC received "Interested Parties" form letter from Nelson announcing
availability of RFP application packet to eligible counties.
2/7 Judd requested RFP from "Program Manager".
2/10 Judd received RFP from Bettencourt,"provided...purely as a courtesy".
2/19 Steinberg/Judd met with Moreno in SLO.
2/25 ('Connell wrote to Bettencourt with copy to Kennedy mentioning that
Getty "has spoken to you on more than one occasion".
2/25 O'Connell wrote to Kennedy with copies to Travers, Allan, Judd.
2/26 Judd wrote to Capps enclosing 2/25 O'Connell-Bettencourt letter
and 2/25 O'Connell-Kennedy letter_
le-10
JUN-06-97 FRI 13:25 EOC FAX N0. 801;;498388 P. 04
2/28 Judd received Q&As for RFP from Bettencourt "provided...purely as a
courtesy".
3/9 Lilley FAXed issue overview to Judd.
3/10 Judd FAXed 3/9 Lilley overview to Moreno.
3/I0 Deiro wrote to Bordonaro with copy to Kennedy.
3/14 Kennedy FAXed copy of 3/10 Deiro letter to Judd.
3/13 As part of RFP,Judd sent request for "determination of eligibility" and
copy of 3/9 Lilley overview to Bettencourt with copies to Wilson,
Nelson, Capps, Moreno.
3/17 Capps wrote to Wilson.
3/17 EOC submitted grant application to Bettencourt.
3/18 Capps wrote to Judd enclosing 3/17 Capps-Wilson letter.
3/21 O'Connell wrote to Mallory with copies to Gardiner,Judd_
3/26 Walker wrote to Judd.
3/26 O'Connell wrote to Wilson.
early April Deiro wrote to O'Connell answering O'Connell's letter to Mallory.
4/14 Steinberg wrote to Micciche with copies to O'Connell, Bordonaro,
Capps, Reyes-Fernandez.
4/17 Capps wrote to Severynen.
4/25-5/8 Steinberg/Judd called Micciche several times.
5/8 Micciche called French then Judd.
5/12 Steinberg/Judd wrote to Mallory with copies to Whiteside, Walker,
Micciche, O'Connell, Bordonaro, Capps.
5/21 Steinberg/Judd called Mallory several times and talked to Bianchi.
5/22 Deiro wrote to O'Connell answering O'Connell's letter to Wilson.
5/23,5/27 Steinberg/Judd called Bianchi several times to arrange conference call.
6/2 Conference call between Lilley/Gardiner/Steinberg/Judd and
Mallory/Deiro/Walker/Bettencourt.
6/3 Steinberg received letter from Walker that EOC application was not
reviewed because SLO County not eligible. �C- 7