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02-17-2015 B1 2014-15 Mid-Year Budget Review
City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Katie Lichtig, City Manager Wayne Padilla, Director of Finance & IT Jason Stilwell, Interim Director of Information Technology & Financial Planning Joe Lamers, Budget Manager SUBJECT: 2014-15 MID-YEAR BUDGET REVIEW RECOMMENDATION 1. Receive an update of changes in financial position and revised projections for all funds for the 2014-15 Fiscal Year 2. Approve revenue and expenditure changes presented in the accompanying Mid-Year Budget Review document. REPORT IN BRIEF The City of San Luis Obispo has received national recognition for its use of a two-year budget process that involves the community in the goal-setting process, emphasizes long-range financial planning and supports effective program management. The City’s Budget and Fiscal Policies call for a formal financial status report to the City Council for every six-month period. This report provides an overview of the status of the 2014-15 budget at its mid-point ending December 31, 2014 with revised projections through June 30, 2015. This report also provides a financial condition summary and mid-year budget adjustment requests. In short, General Fund revenues are projected to increase by $2,774,000. Salary savings of 2% continues to be the estimate for this fiscal year. The mid-year budget proposes establishing a reserve designation for retrospective insurance liabilities as described in a December 2014 report to the City Council. Development Services revenue is being reallocated for application and permit processing activities per Council policy. Five supplemental funding requests totaling $157,450 in 2014-15 are proposed to meet timing requirements or adequately fund current programs. These requests are described in detail later in this report and also in Section C of the Mid-Year Budget Update. The General Fund reserve exceeds the 20% level by $3.6 million, after considering the supplemental funding requests and insurance reserve referred to above. Staff recommends that other potential uses of the amount above the minimum reserve should be considered by the City Council during strategic budget direction in April. In the Water Fund, Water Service charges are projected to be $869,200 less than the original budget estimate for 2014-15. This is due to a reduction in the use of water. This reduction is offset by Development Impact Fees which are projected to increase by $921,400 in 2014-15. Consistent with the City’s policy of annually reviewing the enterprise fund rates, a 2/17/15 B1 B1-1 Mid-Year Budget Review for 2014-15 Page 2 comprehensive review of Water Fund rates will be presented to the City Council in advance of the 2015-17 Financial Plan adoption. DISCUSSION The City’s two-year Financial Plan process calls for the submittal of a formal financial status report to the Council every six months. The accompanying Mid-Year Budget Review for 2014-15 meets this requirement and provides a comprehensive overview of the City’s fiscal condition at the mid-point of the current fiscal year. Background: Purpose of the Mid-Year Budget Review For routine fiscal monitoring, all departments have on-line access to real time accounting information. Financial reports are issued monthly to key staff members and quarterly financial reports are available to the Council and staff. Additionally, the Finance and Information Technology (IT) Department issues regular reports to the Council and staff and the community on key revenues such as sales tax, transient occupancy tax and investments, as well as ad hoc reports as needed. The preparation and submittal of a formal financial review at the mid-point of the fiscal year provides an opportunity to take a broader look at the City’s financial picture across all funds and identify recommended adjustments to make the city-wide 2014-15 budget reflect current assumptions and trends. Report Organization The accompanying Mid-Year Budget Review is organized into five main sections: Section A: Transmittal Memorandum: Provides a narrative overview of the City’s fiscal environment and a narrative of key changes made to revenue projections as a result of this review. Section B: Financial Condition Summaries: Provides comprehensive presentations and updates of projected revenues and expenditures based on staff’s best and most prudent professional judgment applied to current conditions. Beginning fund balances/working capital balances have been updated using the audited 2013-14 results. Projected ending balances for 2014-15 have been forecast using the revised budget estimates and reflect budget changes that have already been approved since the beginning of the fiscal year. Council action is required to approve certain revenue and expenditure items that are part of the forecast changes. Section C: Mid-Year Requests: Provides detailed supporting documentation for the requested mid-year budget adjustments submitted by various departments. These requests require affirmative action on the part of Council to be approved. Section D: Recent financial and revenue reports: Provides the most recent quarterly investment report, quarterly Sales Tax newsletter, and monthly TOT report. Summary of Mid-Year Budget Review Results After reviewing the City’s audited results for 2013-14 and the year-to-date revenue activity, the mid-year review revealed the following with regard to the original 2014-15 budget: B1-2 Mid-Year Budget Review for 2014-15 Page 3 1. Revenues and Inter-fund Transfers-In: The General Fund revenue projections have been updated and key changes are described starting on page A3 of the Transmittal Letter contained in the Mid-Year Budget Report. On-going revenue sources reflect changes that resulted in a net increase of approximately $2.8 million or 4.7% over the original budget. Of this amount, the primary factors are: o Property tax revenues increasing by $330,000 from the original budget based on updates by the County; o Vehicle license fee in-lieu revenue growing by $128,000; o A 7.5% growth in transient occupancy tax (TOT) revenue increasing the revised budget by $454,000 over the prior year. This also reflects an increase above the 5% growth rate in TOT was assumed in the original budget; o $1,328,000 is from an increase in the forecast for development review fees; o One-time revenues, which include grant sources and mutual aid reimbursements, increased by $391,000 over the adopted budget amount (grant revenues and mutual aid reimbursements are offset by increases in related program costs); o Investment and property rent revenues are projected to increase by $150,000 compared to the original budget. Other Fund revenue projections include the following: o The Public Art Capital Fund is reflecting in-lieu fees of $20,701 which reflects year to date receipts. Per City practice, the original budget did not anticipate the receipt of development fees. o The Sewer Enterprise Fund revenue projections reflect an increase of $188,700 in service charges driven primarily by higher than anticipated development fees. o The Water Enterprise Fund revenue forecast is reflecting both a decrease in estimated water sales (due to reduction in use of water) and an increase in water impact fees. Combined the two changes result in a revision that decreases revenue projections by $14,308. o The Tourism Improvement Board Fund’s revenue from assessments is tied to the growth level that is forecast for the Transient Occupancy Tax in the General Fund. As a result, the annual assessment revenue is forecast to increase by $45,260. o The Parkland Development Fund’s adopted budget did not include an estimate for in-lieu fees as the amount that might be collected could not be reasonably estimated. The revised budget includes an estimate for dwelling unit fees in the amount of $10,200 and the Park in-lieu fees are estimated at $116,000 which reflects year to date collections. B1-3 Mid-Year Budget Review for 2014-15 Page 4 o The Affordable Housing Fund’s year to date receipts of the Inclusionary Housing Fee are $263,700 and such fees were not included in the original budget. o General Purpose Capital Outlay Fund increases by $2.9 million to recognize unspent grant funds from the prior year. Council action is required to affirm certain items contained in the summary schedule that is provided in Section B of the Mid-Year Budget Update which reflect changes to the revenue forecast that have not been previously approved by prior Council action or by the City Manager under the authority of that office. These items are shown in the column labeled “Pending Approval (page B-8 to B-10).” 2. Expenditures and Transfers-Out: As part of the process of transitioning from one fiscal period to the next, the budget procedures provide for the carryover of unspent capital project monies into the new year. For all affected funds, this has been accomplished and is reflected in the summary schedule that is provided in Section B of the Mid-Year Budget Update. In addition, encumbrances representing existing obligations to outside vendors for work in progress for various activities that were underway in 2013-14 have also been rolled over to the current year and the budget for expenditures has been increased accordingly. The details of these encumbrances are listed in the same summary schedule that is contained within Section B of the Mid-Year Budget Update document. Various items that have been previously approved by Council action or by the City Manager under the authority of that office have been included in the budget of the affected fund when approved. These are also listed in the summary schedule of changes to expenditure contained in Section B of the Mid-Year Budget Update document. The following items represent changes made to the expenditure budgets of the various funds and departments shown. General Fund $1,212,000 pertains to encumbrance roll-over for prior year commitments; $680,200 is from the carryover of unexpended balances from 2013-14 to meet multi- year objectives; $468,400 reflects the appropriation of excess Development Services fee revenue from 2013-14; $348,900 relates to expenditures tied to grant reimbursements, with the majority of the cost being for mutual aid fire services which are reimbursed by grants with the corresponding revenues added to the budget; $33,250 in Significant Operating Program Changes for the Revenue Enhancement Oversight Commission and Fire Apparatus program; B1-4 Mid-Year Budget Review for 2014-15 Page 5 Reduction of $69,700 which is a transfer of legal fees to the Parking Fund related to a settlement agreement, representing the return of excess support received from the Parking Fund for CBS billboard and litigation costs; Also, there is a $7,500 reduction representing costs which were previously included in the General Fund but which are to be reflected in the Boysen Ranch Endowment Fund. Tourism Business Improvement District Fund Increased appropriations to reflect the use of available fund balance that exceeded the $100,000 minimum amount that the committee had established. ____ Water Enterprise Fund The fund’s budgeted public utilities component has increased by $494,495 primarily reflecting carryover of both encumbrances and certain unexpended balances from 2013-14. Parking Enterprise Fund This fund’s operating budget was increased by $111,939, reflecting carryover of certain unspent balances from 2013-14. Sewer Enterprise Fund Operating costs in the public utilities program are increasing by $614,210 due to carryover of certain unspent balances and encumbrances from 2013-14. Transit Enterprise Fund This fund’s expense budget was increased by $69,743 for carryover of certain unspent balances and encumbrances. Whale Rock Commission A $2,653 encumbrance rolled over from 2013-14 to 2014-15 in the Whale Rock Fund. Council action is required to affirm certain items contained in the summary schedule that is provided in Section B of the Mid-Year Budget Update which reflect changes to the expenditure forecast that have not been previously approved by prior Council action or by the City Manager under the authority of that office. These items are shown in the column labeled “Pending Approval.” 3. Fund Balances and Working Capital Totals Following the completion of the City’s Comprehensive Annual Financial Report, staff reviewed all of the final fund balance and working capital totals to establish the new amounts that are reflected in the mid-year budget update. These amounts and the amount of any change from the original estimate used for the 2014-15 original budget are shown in the Change in Financial Position documents which are included in Section B of the Mid-Year Budget Update document. B1-5 Mid-Year Budget Review for 2014-15 Page 6 The changes in financial position schedules include the actual fund balances/working capital along with the revised budget estimates and compare them to the original budget projections for 2014-15. 4. Supplemental Funding Requests Section C of the Mid-Year Budget Update document contains detailed information on the five supplemental funding requests that have been received. Three are operating program requests and two are capital improvement plan requests. These requests meet the criteria to qualify for supplemental funding by having a critical relationship to one or more major city goals, not having existing support from current appropriations and requiring urgent action in order to meet existing service delivery expectations. The table below represents the proposed 2014-15 funding amounts related to each request and the proposed source of funding. General Fund 2014-15 Amount One-time or On-going Revenue Enhancement Oversight Commission To fund the new Commission to conduct meetings and carry out its responsibilities. $7,250 On going Fire Apparatus Maintenance This request is to fund a one-time cost for vehicle maintenance. $26,000 One time Parking Fund Chinatown artifacts To complete stabilization and preparation for storage of Palm Street Chinatown artifacts. This request can be funded with an available balance in the Parking Fund completed projects account. $55,000 One time Capital Improvement Santa Rosa Park netting This request is made to install new poles and barrier netting along the softball field adjacent to the new skate park. Completion of the new skate park is scheduled for late February 2015. $40,000 One time Pedestrian and bike path maintenance This request is to fund the reconstruction of pathways adjacent to the tennis courts at Sinsheimer Park. $29,200 One time The complete details of each request are shown in Section C of the Mid-Year Budget Update document. Below is a brief description of each request. SUMMARY After evaluating the fiscal environment described above, along with the submissions of the various departments, staff recommends that the City Council should consider and approve the three operating program supplemental funding requests and two Capital Improvement Program requests submitted as part of this Mid-Year Budget Review. After taking these requests into consideration, along with reserve designations for insurance programs ($2.444 million) and development services ($995,900), the General Fund balance exceeds the 20% policy reserve level by $3.6 million. Staff intends to present recommended potential uses of the amount above the minimum reserve during strategic budget direction in April. ATTACHMENT B1-6 Mid-Year Budget Review for 2014-15 Page 7 1. Mid-Year Budget Review for 2014-15 2. Resolution T:\Council Agenda Reports\2015\2015-02-17\Mid-Year Budget Review (Stilwell-Lamers)\Council Agenda Report 2014-15 MYR.docx B1-7 THIS PAGE IS INTENTIONALLY LEFT BLANK 2014-15 Mid-Year Budget Review San Luis Obispo, California For the 2013-15 Financial Plan Attachment 1 B1-8 2013-15 Financial Plan MID-YEAR BUDGET REVIEW: 2014-15 February 2015 JAN HOWELL MARX, MAYOR JOHN ASHBAUGH, VICE MAYOR CARLYN CHRISTIANSON, COUNCIL MEMBER DAN CARPENTER, COUNCIL MEMBER DAN RIVOIRE, COUNCIL MEMBER KATIE LICHTIG, CITY MANAGER Prepared by the Department of Finance & Information Technology Wayne Padilla, Director of Finance & Information Technology Jason Stillwell, Interim Director of Information Technology and Financial Planning Joe Lamers, Budget Manager Vilma Warner, Finance Operations Manager Michelle Bulow, Administrative Assistant Attachment 1 B1-9 TABLE OF CONTENTS A. Transmittal Memorandum Overview A-1 Financial Condition Summary A-3 Mid-Year Budget Requests A-7 Conclusion A-8 B. Financial Condition Summaries Revenues by Major Category and Source B-1 Summary of Revenue Adjustments B-8 Summary of Expenditure Adjustments B-10 Interfund Transactions Operating Transfers B-20 Reimbursement Transfers B-24 Changes in Financial Position Combined Statements All Funds Combined B-25 Governmental Funds B-26 Enterprise and Agency Funds B-27 General Fund B-28 Special Revenue Funds Downtown Business Improvement B-29 Tourism Business Improvement B-30 Gas Tax B-31 Transportation Development Act B-32 CDBG B-33 Law Enforcement Grant Fund B-34 Capital Project Funds Public Art Fund B-35 General Purpose CIP B-36 Parkland Development B-37 Transportation Impact Fee B-38 Open Space Protection B-39 Airport Area Impact Fee B-40 Affordable Housing B-41 Fleet Replacement B-42 LOVR Sub-Area Fee Fund B-43 Major Facility Replacement B-44 I.T. Replacement B-45 Debt Service Fund B-46 Enterprise Funds Water B-47 Sewer B-48 Parking B-49 Transit B-50 Agency Funds Whale Rock Reservoir B-51 Boysen Ranch Conservation B-52 Internal Service Fund Insurance Benefit Fund B-53 C. Mid-Year Supplemental Budget Requests Summary of Mid-Year Budget Requests C-1 Revenue Enhancement Oversight Commission C-2 Fire Apparatus Operating Budget C-4 Santa Rosa Park Ball Field Barrier Netting C-7 Pedestrian and Bike Path Maintenance C-10 Palm Street Chinatown Artifacts C-13 D. Recent Financial and Revenue Reports Sales Tax Newsletter: Third Calendar Quarter 2014 D-1 Monthly TOT Report: December 2014 D-3 Quarterly Investment Report: December 2014 D-4 Attachment 1 B1-10 Section A TRANSMITTAL MEMORANDUM Attachment 1 B1-11 February 17, 2015 TO: Mayor and City Council FROM: Katie Lichtig, City Manager Wayne Padilla, Director of Finance and Information Technology Jason Stilwell, Interim Director of Information Technology and Financial Planning Joe Lamers, Budget Manager SUBJECT: MID-YEAR BUDGET REVIEW FOR 2014-15 OVERVIEW The City’s Budget and Fiscal Policies call for a formal financial status report to the Council for every six-month period. The Mid-Year Budget Review meets this requirement and allows the Council to take a broader look at the City’s financial picture at the mid-point of the fiscal year. This report provides: 1. An update to the beginning fund balance projections based on actual audited results from the prior fiscal year with uses to be considered during strategic budget direction. 2. An analysis of revenue trends since adoption of the Financial Plan, and revision of revenue and ending fund balance projections accordingly. 3. Identification of any budget adjustments that require Council action, and recommendations for supplemental budget adjustments. This midyear budget update provides indication that the economy is recovering and expenditures are being managed. Taken together, this gives the city the opportunity to evaluate options for dedicating one-time funding in the General Fund to address needs such as payments towards the unfunded liability and/or deferred maintenance of city infrastructure and assets. These options will be presented to the City Council for consideration as part of a separate item on February 17, 2015. All Funds Reviewed This mid-year budget review primarily focuses on programs and projects financed through the General Fund, but it does contain basic numerical information regarding any projected changes affecting the City’s other funds, including the enterprise funds. Staff has reviewed the projections for these funds to ensure that they are sound in light of current conditions. Summary of Findings and Conclusions After reviewing the City’s audited financial results from 2013-14 and analyzing the current fiscal year- to-date revenue and expenditure trends, staff applied its best and most prudent professional judgment to confirm the revenue and expenditure projections for the rest of the fiscal year. The following points highlight the major changes that have been made to the original General Fund revenue and expenditure projections compared to the adopted 2014-15 budget: 1. General Fund revenues received through January were compared to receipts from 12 months ago and a forecast of future revenues for the next 5 months was developed to determine the annual revenues to be derived from each revenue source. The key changes in the revenue forecast that resulted from this analysis are described starting on page A-3 below. 2014-15 revenues are forecast to increase by a total of $2.774 million over the original budget amount. Of this amount, tax revenues are projected to increase by $810,400. $1.443 million of the increase in revenue is from service charges, including a $1.328 million projected increase in development review fees. Grant and other non-recurring revenues increased by $391,800 compared to the original budget. Other revenues are projected to decline by $20,800. The revised projections for major revenues shown in this document represent growth trends that are in line with those provided by the City’s sales tax advisor for sales tax assumptions, and other outside sources such as the county for property tax receipts, current contract agreements related to fee reimbursements and current local revenue trends. 2. This mid-year update continues the assumption that there will be savings equal to 2% of budgeted salaries and benefits. A-1 Attachment 1 B1-12 3. In general, staff has only proposed mid-year budget requests that need to be considered now in order to meet timing requirements or adequately fund current programs. Accordingly, there are four General Fund expenditure requests submitted for Council consideration during this Mid-Year Review. These four requests include two Significant Operating Program Changes (SOPC’s) and two CIP requests, which have a combined total cost of $102,450 in the General Fund in the current fiscal year. While the majority of these costs are one-time, one General Fund SOPC is an on-going request for the monthly stipend and operating costs for the new Revenue Enhancement Oversight Commission which includes $14,500 in 2015-16 costs. In addition, there is one SOPC in the Parking Fund for $55,000 which has available funding from completed projects. 4. The mid-year budget proposes the establishment of a $2,444,000 reserve designation for retrospective insurance liabilities. This amount is consistent with what was reported in the Five Year Fiscal Forecast presented in December 2014. Of the $2.4 million designation, $1.1 million is the General Fund share of an anticipated retrospective insurance adjustment to be paid in 2015-16 to the California Joint Powers Insurance Authority (CJPIA). In addition, staff recommends increasing the reserve by $1.32 million in order to guard against cost increases of this nature in the future. The reserve amount will be reviewed annually in concert with the annual review conducted by the self-insurance authority. While the CJPIA has developed a new funding model that is designed to eliminate retrospective adjustments in the future, this only applies to plan years after 2012-13. The most recent retrospective adjustment applies to plan years ending with 2012-13. Retrospective costs could accrue as the claims from 2012-13 and before are processed. This is why establishing the designated reserve is prudent. 5. By resolution on June 17, 2014 the City Council revised fiscal policies to provide for the City Manager to reallocate up to 75% of Development Services revenues to acquire temporary resources for the timely processing of development applications and other permit processing activities. The policy calls for reallocated revenues to be reported to the City Council on a semi-annual basis as part of the mid-year and annual budget presentations. Development review activity remains at a high level. In Fiscal Year 2013-14 Development Services revenues collected were $624,448 in excess of the budget; $468,336 or 75% of this excess has been allocated to Development Services operating expenditures. In 2014-15, Development Services revenues are projected to be $1,327,918 in excess of the original budget forecast. $995,939 has been placed in a designated reserve for potential uses related to permit processing and development related activities. Development review fees paid at the time of an application represent a prepayment for work in conjunction with the development review process. Not all of these fees should be allocated for expenditures in the period they are received because some of the work can only occur when the project is under construction, which may be many months or years after an application is processed and payment is received. It is anticipated that an allocation of excess revenues from 2014-15 will be carried over and appropriated in 2015-16. Development Services Revenues & Allocation 2013-14 2014-15 Revenue Budget 3,582,638 3,396,300 Actual (2013-14) Revised Budget (2014-15) 4,207,086 4,724,218 Excess Revenue 624,448 1,327,918 75% Allocation 468,336 995,939 A-2 Attachment 1 B1-13 FINANCIAL CONDITION SUMMARY FY 2014-15 Fund Balance Based on the 2013-14 financial results reported in the Comprehensive Annual Financial Report, combined with updates to revenue and expenditure projections in 2014-15, the 2014-15 unrestricted fund balance above the 20% policy level is $3.637 million. This is comprised of: Part of the overall increase in the unrestricted fund balance is due to the release of $1.62 million in Measure Y contingency funds which were set aside in the event Measure G failed in November 2014 (this figure is net of $79,000 which was allocated to the Downtown Renewal project). In addition to the Measure Y contingency reserve, the General Fund realized $577,000 in Measure Y savings when comparing actual revenues to actual expenditures at 2013-14 year end. A $1.439 million positive variance in non-Measure Y revenues exists after taking into account 2013-14 year end results and 2014-15 revised projections. The $3.6 million excess reserve balance amount represents resources available for use on future, one- time spending. As part of strategic budget direction in April 2015, staff intends to report back to Council with recommendations for potential uses of the reserve, taking into consideration Major City Goals, Other Important Objectives, Measure G priorities, and other Council direction. General Fund Revenues Included in Section B of this report is a summary of revenues by fund and major sources that provides actual results for 2013-14, and original budgeted amounts for 2014-15 along with revised projections and respective variances for each source. Based on this Mid-Year Review, overall projections for 2014- 15 General Fund revenues are now anticipated to be $2.774 million higher than projected in the 2013-15 Financial Plan Supplement. Approximately $1.3 million of that amount represents service charges primarily resulting from increased development review fees. The following summarizes the most significant General Fund revenue trends: 1. General Sales Tax. Based on the latest forecast provided by HdL, the City’s sales tax advisor, general sales tax receipts will reflect a decrease of $44,000 compared to the original budget. This decrease is the result of revised calculations provided by HdL in January 2015. The reduction in sales tax revenue pertains to the triple-flip sales tax for property tax exchange deduction which is anticipated to take place in 2014-15. 2. Local Sales Tax. Using the HdL forecast for Local Sales Tax revenue (Measure Y/G), the mid-year revision reflects an increase in receipts of approximately $127,000 compared to the original budget. The local sales tax revenue is not impacted by the triple-flip tax exchange process. 3. Property Tax. Property tax revenues continue to show modest growth and are building on the positive growth that began, for the first time in three years, during 2012-13. The revised budget recommends an increase of $330,000 to the current budget to reflect the county’s current forecast amount. 4. Vehicle License Fees In-lieu. The county has forecast that this amount will grow by $203,000 over the prior year or $128,000 over the current budget estimate. 5. Transient Occupancy Tax (TOT). TOT continues to show year over year growth. The revised projection indicates that TOT will A-3 Attachment 1 B1-14 increase by 7.5% or $454,000 over the prior year. The revised projection represents $228,000 more revenue over the original 2014-15 budget. 6. Franchise Fees. Franchise fee revenues show year over year growth which was not anticipated in the original budget. The revised projection indicates that franchise fee revenue will increase by 1.5% or $40,000 over the prior year and $136,000 over the original 2014-15 budget. 7. Utility Users Tax (UUT). The 2014-15 UUT projection has been reduced by $154,600 compared to the original budget. The revised budget is consistent with receipts from 2013-14 year-end. While the original budget included a 3% growth estimate, receipts received over the first six months do not reflect an increase, as UUT has remained relatively flat. 8. Other Subventions and Grants. These revenues include funding from state and federal sources. The mid-year forecast reflects an increase of $391,000 in this revenue category. $257,000 is to reflect Mutual Aid Reimbursements that are expected for claims that were filed by the Fire Department. With the exception of administrative overhead, this revenue is off-set by costs of sending staff to mutual aid events. Additional grants are also reflected in the mid- year revision primarily consisting SB 90 mandated cost reimbursements totaling $67,300, additional Zone 9 county flood control district reimbursements of $40,000, a Justice Assistance Grant reimbursement for $10,355 and Fire Prevention Grant reimbursement of $15,300. Each of these grants have off-setting costs which have been factored into the 2014-15 Mid Year budget. 9. Development Review Fees. Revenues collected through January 2015 are well ahead of expectations. The mid-year revised projection reflects adjustments to account for the fees already received and those anticipated to be received during the current year from proposed development activity. Based on the amounts received and staff’s estimate for the rest of the year, development fee revenue is forecast to be $1,327,918 more than the original budget forecast. Per fiscal policy, 75% of development services revenue can be allocated to fund temporary work to facilitate permit processing and related activities. $468,000 was allocated to the 2014-15 budget from 2013-14 revenues. A 2014-15 allocation of $996,000 is being placed in a designated reserve for potential allocation towards development services in the future and is not allocated to the department budget at this time. 10. Investment and property rent revenues are projected to increase by $150,000 compared to the original budget. Investment revenues grew in 2013-14 and are expected to be similar in 2014- 15. Other Fund Revenues 1. Public Art – recognize $20,701 representing collections to date for private sector in-lieu fee contributions. 2. Sewer Enterprise Fund – The service charge fee revenue estimate budget is proposed to increase by $188,700. The increase is driven primarily by higher than anticipated development impact fees. The Other Revenue category is also anticipated to be $9,600 higher than the original budget estimate. The net revision to the Sewer Enterprise Fund revenue budget is an increase of $198,300 or 1.2%. 3. Water Enterprise Fund – Service charges and other revenues are proposed for a net reduction in the amount of $14,308, or less than 1%, to reflect the current estimate for the rest of the year. The two primary components are water impact fees, which have a positive variance of $921,400, offset by water sales with a negative variance of $952,108 due to a reduction in the use of water. 4. Tourism Improvement Board Fund – The assessment revenue for this fund is tied to the growth level that is forecast for the Transient Occupancy Tax in the General Fund. As a result, the annual assessment revenue is forecast to increase by $45,260 which represents a 4% increase over the original budget estimate. 5. Transportation Impact Fee Fund – The original budget for subventions and grants, which was set at $1,234,000, was increased by $221,379 to reflect grant funding received for the Taft to Pepper trail project. A-4 Attachment 1 B1-15 6. Parkland Development Fund – The original budget did not include an estimate for in-lieu fees or dwelling unit charges, however actual receipts are material. The revised budget includes an estimate for dwelling unit fees in the amount of $10,200 and the Park in-lieu fees are estimated at $116,000. 7. Open Space Protection Fund – The current year’s subvention and grant total budget was increased by $58,595 to reflect carryover project with available grant funding. 8. Affordable Housing Fund – Year to date receipts of the Inclusionary Housing Fee are $263,700 and the proposed budget reflects a like amount for the year. 9. General Purpose Capital Outlay Fund - Recognize unspent grant funds from the prior year in the total amount of $2,869,000. The projects that these grant funds will be used for are listed in the Summary of Revenue Adjustments provided in Section B of this document. Operating Program Expenditures Section B includes an overview of changes to the operating program budgets. Organized by fund, these schedules include the original budget, re- appropriations for encumbrances and carryovers, and budget changes to-date since approval of the 2013-15 Financial Plan in June 2013. These summaries also reflect the mid-year budget requests, which are discussed later in this document. Below is a description of items affecting each fund. General Fund - The revised budget shows a $2,665,000 increase in the General Fund operations. Of this amount: • $1,212,000 pertains to encumbrance roll-over for prior year commitments; • $680,200 is carryover of unexpended balances from 2013-14 to meet multi-year objectives; • $468,400 reflects allocation of excess Development Services fee revenue from 2013-14; • $348,900 relates to expenditures tied to grant reimbursements, with the majority of the cost being for mutual aid fire services which are reimbursed by grants with the corresponding revenues added to the budget; • $33,250 in Significant Operating Program Changes for the Revenue Enhancement Oversight Commission ($7,250) and Fire Apparatus program ($26,000); • Reduction of $69,700 which is a transfer of legal fees to the Parking Fund related to a settlement agreement; • $7,500 reduction representing costs which were previously included in the General Fund but which are to be reflected in the Boysen Ranch Endowment Fund. Detailed listing of expenditure budget adjustments are provided in Section B of this Mid-Year Report (Summary of Expenditure Budget Adjustments). Tourism Business Improvement District Fund (TBID) - TBID expenditures are projected to be $148,402 or 12% above original budget. This adjustment would bring available appropriations to $1,381,176 and is funded from higher than expected revenues received in 2013-14. The increase in appropriations reduces the fund balance to the approved minimum level of $100,000. Water Enterprise Fund – The fund’s budgeted public utilities component has increased by $494,495. Of this amount $458,239 reflects carryover of encumbrances and certain unexpended appropriations from 2013-14. The budget was also increased by $30,000 to fund an educational and public outreach plan related to draught conditions, funded from working capital and approved by Council in August. The amount of $6,557 was added to account for sale of scrap metal being used for purchase of small tools and water meters. Parking Enterprise Fund - This fund’s operating budget was increased by $111,939, reflecting carryover from 2013-14. Sewer Enterprise Fund – Operating costs in the public utilities program of the Sewer Fund are increasing by $614,210. The increase is related to carryover and encumbrances from 2013-14. A-5 Attachment 1 B1-16 Transit Enterprise Fund - This fund’s expense budget was increased by $69,743 to reflect prior year expense carryover and encumbrances. Whale Rock Commission – A $2,653 encumbrance rolled over from 2013-14 to 2014-15 in the Whale Rock Fund. Capital Improvement Program Expenditures The Capital Improvement Program (CIP) budget reflects an increase of $37.5 million across all funds. The majority of this amount represents carryover of encumbrances and unexpended balances from 2013- 14. Changes are displayed in Section B, summary of Expense Budget Changes. There are two new CIP requests for City Council consideration which have a combined total of $69,200. These two requests include $40,000 for a ball field netting at Santa Rosa Park and $29,200 for pedestrian and bike math maintenance. Both requests are described below and in Section C of this document. Listing of Encumbrances and Other Budget Changes that have Occurred Prior to the Mid- Year Budget Update This part of Section B reflects the budget changes that have taken place to re-appropriate prior year encumbrances, carryover unspent capital project balances and other routine budget changes that have occurred since the approval of the 2013-15 Financial Plan Supplement in June 2014. Inter-Fund Transactions This portion of Section B reflects actual inter-fund transfers for 2013-14 along with the original budget and revisions for 2014-15. The revised operating transfers are explained below: General Fund Transfer In -The General Fund is scheduled to receive a $913 increase in the transfer from the TBID related to an increase in the Transient Occupancy Tax revenue estimate. The transfer to the General Fund is based on 2% of the revenues to be received by this program. General Fund Transfer Out – The transfer out of the General Fund is increasing by $97,800 due to a combination of factors described below: • $69,200 represents the combined total of two mid-year CIP requests for the Santa Rosa ball field netting and ($40,000) pedestrian and bike path maintenance projects ($29,200); • $79,000 represents funding that was recently approved by the City Council for the Downtown Renewal project; • A $75,000 transfer to the Open Space fund is recognized in the mid-year budget for Pismo Preserve, also approved by Council; • The Transfer Out to Debt Service is being reduced by $195,135 in 2014-15 due to a revised payment schedule for Lease Revenue Bonds (LOVR) and Capital Lease for I.T. Equipment; • A $69,700 transfer of legal fees to the Parking Fund is reflected, representing the return of excess support received from the Parking Fund for CBS Billboard and litigation costs. Public Art Fund Transfer In –transfer from the Capital Outlay Fund of $47,200 for the Bridge Enhancement art project. Open Space Protection Fund Transfer In – Costs increased by $75,000 following Council’s approval of the contribution the Pismo Coast Preserve program. General Capital Outlay Fund Transfer Out – A $141,500 Transfer Out of the Capital Outlay Fund is shown to reflect the assignment of Bridge Art project to the Public Art Fund ($47,200) and Facility Maintenance Master Plan project funding ($94,300) is being moved to the Major Facility Replacement Fund. Projected Fund Balances/Working Capital Based on the revised estimates for revenue projections and expenditures, this part of Section B includes a summary of projected changes in financial position for each of the City's funds. The changes in financial position schedules include the actual fund balances/working capital along with the original budget and revised budget projections for 2014-15, and reflect budget changes that have already been approved since the beginning of the fiscal year. The costs and estimated revenues (if any apply) that are A-6 Attachment 1 B1-17 associated with the following Mid-Year supplemental funding requests are also reflected in the ending fund balance. MID-YEAR BUDGET REQUESTS Mid-year budget requests focus on areas that need to be approved now in order to meet timing requirements or adequately fund current programs through the end of the fiscal year. Supporting documentation that fully justifies the need for these adjustments is provided in Section C, summarized as follows. Operating Program Requests There are three operating program requests in the mid-year budget for Council consideration, including two requests in the General Fund and one request in the Parking Fund. These requests are summarized below: Revenue Enhancement Oversight Commission - This request is being made to provide fund the new Commission to conduct meetings and carry out its responsibilities. The associated costs include member compensation at $60 per meeting, materials and supplies, training through the League of California Cities, and other incidental expenses. Fire Apparatus Operating Budget – This request is to fund a one-time cost of $26,000 for vehicle maintenance. The Fire Department’s contract and operating supplies accounts related to maintenance of emergency response apparatus are insufficiently funded due to rising costs. This funding gap was identified during the FY 2013-14 midyear process, and funding was allocated to address this need during the midyear report. Prior to submitting the FY 2013- 14 midyear budget request, the Fire Department performed an extensive analysis of its budget to search for funds that could be reprioritized and reallocated to support apparatus maintenance needs. The result of this analysis was the conclusion that the Fire Department does not have the capacity to reallocate funding for this need. To allow for the continued maintenance of emergency response apparatus, the City Council authorized an additional $26,000 to the Fire Department’s FY 2013-14 budget at midyear. Since this is an on-going need it is likely to be addressed in the 2015-17 Financial Plan. Palm Street Chinatown Artifacts (Parking Fund) – This request is to complete stabilization and preparation for storage of Palm Street Chinatown artifacts, and will create products associated with the collection that demonstrate its historic significance in the community. The cost of $55,000 can be covered with available funding in the Parking Fund’s completed projects account. Capital Improvement Plan Requests There are also two Capital Improvement Plan requests for Council consideration in the mid-year budget: Santa Rosa Park Ball Field Barrier Netting – This request is made to install new poles and barrier netting along the softball field adjacent to the new skate park, at a cost of $40,000. Completion of the new skate park is scheduled for late February 2015, and the expansion brings users of the park even closer together posing safety issues between the skate park and the softball field. The need for this safety measure has recently become apparent to staff as construction has neared completion and was not readily seen in reviewing of the plans. The installation of protective barrier netting will ensure safety for all users of Santa Rosa Park. The basic concern is that softball players could hit balls into the skate park. Pedestrian and Bike Path Maintenance - This request is to fund the reconstruction of pathways adjacent to the tennis courts at Sinsheimer Park. The Pedestrian and Bike Path Maintenance 2015 project was advertised for construction bids in January 2015. The project was bid with two “additive alternates” – the reconstruction of two sections of pathways adjacent to the tennis courts at Sinsheimer Park. By increasing the CIP budget by $29,200, the additive alternates can be included in the award of the project’s construction contract. Potential Uses of Excess Fund Balance Staff’s intent is to develop recommendations for potential uses of the year end fund balance that exceeds the minimum 20% reserve level that will be presented during the Council meeting on setting the strategic budget direction in April 2015. These recommendations will take into consideration Major City Goals for 2015-17, potential uses of Measure Y, and other direction provided by the Council. A-7 Attachment 1 B1-18 CONCLUSION This mid-year review provides further indication that the economy is recovering and expenditures are being carefully managed. As a result, the city has the opportunity to evaluate options for dedication of one- time General Fund resources for addressing prioritized unfunded liabilities and/or deferred maintenance of infrastructure assets. Information pertaining to these options is being presented to the City Council as part of a separate item on February 17, 2015. The Budget Review Team and Department Heads will be prepared to respond to any questions the Council may have regarding this report at the February 17, 2015 meeting. If you have any questions in the interim, or require additional information, please do not hesitate to contact Interim Information Technology and Financial Planning Director Jason Stilwell at 805-781-7569 or Budget Manager Joe Lamers at 805-781-7132. A-8 Attachment 1 B1-19 Section B FINANCIAL CONDITION SUMMARIES Attachment 1 B1-20 REVENUES BY MAJOR CATEGORY AND SOURCE SUMMARY BY FUND Actual Original Revised 2013-14 Budget Projection Variance % Change GOVERNMENTAL FUNDS General Fund 61,387,700 59,138,300 61,912,944 2,774,644 5% Special Revenue Funds 4,357,890 3,716,237 3,667,431 (48,806)-1% Capital Project Funds 4,463,669 18,102,800 21,642,266 3,539,466 20% Total Governmental Funds 70,209,259 80,957,337 87,222,641 6,265,304 8% ENTERPRISE FUNDS Water Fund 19,829,309 18,884,708 18,870,400 (14,308)0% Sewer Fund 17,202,930 16,157,000 16,355,300 198,300 1% Parking Fund 4,122,860 4,076,800 4,076,800 Transit Fund 3,235,713 4,397,300 4,397,300 Whale Rock Reservoir Fund 985,973 1,029,100 1,029,100 Total Enterprise Funds 45,376,785 44,544,908 44,728,900 183,992 0% TOTAL $115,586,044 $125,502,245 $131,951,541 6,449,296 5% 2014-15 B-1 Attachment 1 B1-21 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2013-14 Budget Projection Variance GENERAL FUND Tax & Franchise Revenues Sales & use tax General 15,405,800 15,276,800 15,232,511 (44,289)0% Measure Y 6,774,400 6,775,000 6,902,000 127,000 2% Public safety (Proposition 172)391,600 350,400 411,000 60,600 17% Property tax 8,960,000 8,933,600 9,263,333 329,733 4% Property tax in lieu of VLF 3,645,700 3,721,600 3,849,341 127,741 3% Transient occupancy tax 6,063,200 6,289,800 6,517,974 228,174 4% Utility users tax 5,345,300 5,500,000 5,345,343 (154,657)-3% Franchise fees 2,636,600 2,540,200 2,676,148 135,948 5% Business tax certificates 2,143,000 2,184,500 2,184,515 15 0% Real property transfer tax 287,600 180,000 180,000 Total Tax & Franchise Revenues 51,653,200 51,751,900 52,562,165 810,265 2% Fines & Forfeitures Vehicle code fines 112,600 120,000 120,000 Other fines & forfeitures 37,600 36,000 36,000 Total Fines & Forfeitures 150,200 156,000 156,000 Investment and Property Revenues Investment earnings 175,100 20,300 170,300 150,000 739% Rents & concessions 197,600 161,400 161,400 Total Investment & Property 372,700 181,700 331,700 150,000 83% Subventions & Grants Motor vehicle in-lieu - Homeowners & other in-lieu taxes 74,000 74,000 74,000 Other in-lieu taxes 22,200 22,000 22,000 SB 90 reimbursements 12,100 Police training (POST)36,800 40,000 40,000 Mutual aid reimbursements 456,300 256,635 256,635 COPS grant AB3229 100,000 100,000 100,000 OTS Grant 40,000 Zone 9 reimbursements 37,000 85,000 125,000 40,000 47% Other state & federal grants 460,100 6,000 101,170 95,170 Total Subventions & Grants 1,238,500 327,000 718,805 391,805 120% Service Charges Police Services Accident reports 3,400 3,000 3,000 Collision investigation 10,500 12,000 8,000 (4,000)-33% Alarm permits and false alarm fees 129,700 80,000 80,000 DUI cost recovery 26,400 15,000 25,000 10,000 67% Tow release fee 14,500 12,000 12,000 Booking fee recovery Tobacco permit fees 21,100 20,000 20,000 Administrative citations 137,100 100,000 125,000 25,000 25% 2014-15 % Change B-2 Attachment 1 B1-22 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2013-14 Budget Projection Variance GENERAL FUND Parking citations 82,800 80,000 80,000 Other police services 162,200 103,000 109,300 6,300 6% Total Police Services 587,700 425,000 462,300 37,300 9% Fire Services Cal Poly fire services 270,700 270,700 270,684 (16)0% Medical emergency recovery 168,800 170,000 172,209 2,209 1% Fire safety/haz mat permits 128,500 130,000 130,000 Multi-dwelling unit inspections 193,700 194,000 194,000 CUPA fees 51,400 100,000 100,000 Other fire services 35,700 25,000 9,000 (16,000)-64% Total Fire Services 848,800 889,700 875,893 (13,807)-2% Development Review Planning & zoning fees 1,124,300 317,200 317,228 28 0% Building Permits 1,131,000 975,000 1,600,000 625,000 64% Construction plan check & inspection 907,900 676,500 676,484 (16)0% Infrastructure plan check & inspections 580,600 374,900 600,000 225,100 60% Encroachment permits 163,300 160,700 160,700 Fire plan check & inspections 308,800 305,000 350,000 45,000 15% Waterways management plan fees Other Development Fees (8,900)587,000 1,019,806 432,806 74% Total Development Review 4,207,000 3,396,300 4,724,218 1,327,918 39% Parks & Recreation Adult athletic fees 124,200 122,400 122,400 Youth athletic fees 30,100 33,700 33,700 Skate park fees Instruction fees 95,700 83,900 91,000 7,100 8% Special event fees 110,400 92,700 92,700 Rental & use fees 216,700 161,500 161,953 453 0% Children services 618,600 511,600 600,000 88,400 17% Teens & seniors 6,300 500 1,500 1,000 200% Aquatics 201,200 256,700 246,700 (10,000)-4% Golf 336,700 291,700 291,700 Other recreation revenues (7,000)(7,000)(7,000) Total Parks & Recreation 1,732,900 1,547,700 1,634,653 86,953 6% General Government Business license 407,600 371,000 371,000 Sales of publications 2,600 2,500 2,500 Other service charges 35,500 9,500 14,500 5,000 53% Total General Government 445,700 383,000 388,000 5,000 1% Total Service Charges 7,822,100 6,641,700 8,085,064 1,443,364 22% Other Revenues Insurance refunds 48,700 20,000 20,000 Other revenues 102,300 60,000 39,210 (20,790)-35% Total Other Revenues 151,000 80,000 59,210 (20,790)-26% Total General Fund $61,387,700 $59,138,300 $61,912,944 $2,774,644 5% 2014-15 % Change B-3 Attachment 1 B1-23 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2013-14 Budget Projection Variance SPECIAL REVENUE FUNDS Downtown Business Improvement District Fund Investment & Property Revenues Service Charges 218,267 214,000 214,000 Other Revenues 150 Total Downtown BID Fund 218,417 214,000 214,000 Tourism Business Improvement District Fund Investment & Property Revenues 9,040 1,100 1,100 Other Revenues Service Charges 1,217,781 1,257,960 1,303,580 45,620 4% Total Tourism BID Fund 1,226,821 1,259,060 1,304,680 45,620 4% Community Development Block Grant Fund Investment & Property Revenues 351 Subventions & Grants 1,012,873 760,567 645,440 (115,127)-15% Other Revenues 18,950 1,032,174 760,567 645,440 (115,127)(0) Gas Tax Fund Subventions & Grants 1,460,290 1,141,700 1,141,700 Transportation Development Act Fund Subventions & Grants 49,169 54,800 54,800 Law Enforcement Grant Fund Investment & Property Revenues 2,167 100 100 Subventions & Grants 256,149 260,110 260,110 Service Charges 2,616 2,000 2,000 Total Law Enforcement Grant Fund 260,932 262,210 262,210 Public Art Contributions Fund Investment & Property Revenues 3,147 2,100 2,100 Service Charges 20,000 40,701 20,701 104% Other Revenues 106,940 Total Public Art Contributions Fund 110,087 22,100 42,801 20,701 94% Boyson Ranch Conservation Fund Investment & Property Revenues 1,800 1,800 Subventions & Grants Service Charges Total Bosyson Ranch Fund 1,800 1,800 Total Special Revenue Funds $4,357,890 $3,716,237 $3,667,431 (48,806)-1% 2014-15 % Change B-4 Attachment 1 B1-24 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2013-14 Budget Projection Variance CAPITAL PROJECT FUNDS General Purpose CIP Subventions & Grants State of California T SHA/USHA 246,654 306,111 306,111 Safe routes to school grant SLTPP/STP grant 16,289,400 16,289,500 100 0% STP/SHA - RRTC 338,593 1,073,783 1,073,783 Other state grants 153,448 2,520 2,520 Federal Government Highway & bridge rehabilitation & replacement (HBRR)140,024 390,887 390,887 Transportation enhancement (TEA) Other federal grants 600,000 708,800 708,800 Service Charges Zone 9 reimbursements 60,903 234,391 234,391 Other Revenues Contributions Other Revenue 153,000 153,000 Total General Purpose CIP 1,539,622 16,289,400 19,158,992 2,869,592 18% Parkland Development Fund Investment & Property Revenues 9,500 3,000 3,000 Subventions & Grants Service Charges Park in-lieu fees 94,235 116,000 116,000 Dwelling unit charge 3,300 10,200 10,200 Other Revenues Total Parkland Development Fund 107,035 3,000 129,200 126,200 Transportation Impact Fee Fund Investment & Property Revenues 28,352 10,000 10,000 Subventions & Grants 282,207 1,234,000 1,455,379 221,379 Service Charges Impact Fees 1,002,592 177,200 177,200 Other Revenues Total Transportation Impact Fee Fund 1,313,151 1,421,200 1,642,579 221,379 16% Fleet Replacement Fund Investment & Property Revenues 19,074 6,000 6,000 Other Revenues Sale of surplus property 59,123 10,000 10,000 Total Fleet Replacement Fund 78,197 16,000 16,000 2014-15 % Change B-5 Attachment 1 B1-25 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2013-14 Budget Projection Variance CAPITAL PROJECT FUNDS Open Space Protection Fund Investment & Property Revenues 4,560 1,500 1,500 Subventions & Grants 50,205 350,000 408,595 58,595 Service Charges 20,981 Total Open Space Protection Fund 75,746 351,500 410,095 58,595 Airport Area Impact Fee Fund Investment & Property Revenues 6,676 1,000 1,000 Service Charges 255,011 Total Airport Area Impact Fee Fund 261,687 1,000 1,000 Affordable Housing Fund Investment & Property Revenues 59,726 17,000 17,000 Subventions & Grants 100,955 34,700 34,700 Service Charges 911,262 229,000 229,000 Total Affordable Housing Fund 1,071,943 17,000 280,700 263,700 Los Osos Valley Road Sub-Area Fee Fund Investment & Property Revenues 8,939 1,700 1,700 Service Charges 3,097 Total LOVR Sub-Area Fee Fund 12,036 1,700 1,700 Information Technology Replacement Fund Investment & Property Revenues 4,252 1,500 1,500 Service Charges Total IT Replacement Fund 4,252 1,500 1,500 Major Facility Replacement Fund Investment & Property Revenues 5,091 500 500 Service Charges Total IT Replacement Fund 5,091 500 500 Total Capital Project Funds $4,463,669 $18,102,800 $21,642,266 3,539,466 20% TOTAL-GOVERNMENTAL FUNDS $70,209,259 $80,957,337 $87,222,641 6,265,304 8% % Change 2014-15 B-6 Attachment 1 B1-26 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2013-14 Budget Projection Variance ENTERPRISE & AGENCY FUNDS Water Fund Investment & Property Revenues 136,205 50,000 50,000 Impact Fees 819,477 Service Charges 18,645,973 18,802,608 18,789,400 (13,208)0% Other Revenues 227,654 32,100 31,000 (1,100)-3% Total Water Fund 19,829,309 18,884,708 18,870,400 (14,308)0% Sewer Fund Investment & Property Revenues 98,087 97,600 97,600 Impact Fees 268,132 158,300 560,000 Service Charges 16,799,287 15,894,300 15,681,300 (213,000)-1% Other Revenues 37,424 6,800 16,400 9,600 141% Total Sewer Fund 17,202,930 16,157,000 16,355,300 198,300 1% Parking Fund Fines & Forfeitures 585,783 708,300 708,300 Investment & Property Revenues 124,130 21,000 21,000 Service Charges 3,412,947 3,347,500 3,347,500 Other Revenues Total Parking Fund 4,122,860 4,076,800 4,076,800 Transit Fund Investment & Property Revenues 6,129 5,800 5,800 Subventions & Grants 2,540,999 3,718,000 3,718,000 Service Charges 664,069 669,500 669,500 Other Revenues 24,516 4,000 4,000 Total Transit Fund 3,235,713 4,397,300 4,397,300 Whale Rock Commission Investment & Property Revenues 7,167 1,000 1,000 Service Charges 976,083 1,026,700 1,026,700 Other Revenues 2,723 1,400 1,400 Total Whale Rock Commission Fund 985,973 1,029,100 1,029,100 Total Enterprise & Agency Funds $45,376,785 $44,544,908 $44,728,900 $183,992 0% TOTAL - ALL FUNDS $115,586,044 $125,502,245 $131,951,541 $6,449,296 5% % Change 2014-15 B-7 Attachment 1 B1-27 Budget Amendment Pending Name Description Amount Approval Total GENERAL FUND Code Enforcement Fees Funds received from a code violation 100 Outdoor Rental & Use Fees Revenue received from Facility Use Permit 453 Zone 9 Streambed Clearance Zone 9 Streambed Clearance Revenue 40,000 LHMP (FEMA Pass-Thru)Carryover of 13-14 LHMP Grant 1,033 Other State Grants ABC Grant Revenue 6,467 Cal OES Engine Reimbursement OES Engine Reimbursement 1,223 JAG Grant JAG Grant 10,355 Fire Prevention 2013 Carryover of 13-14 FEMA Fire Prevention Grant 31,164 (15,864) Forecast Update Adjust for Subventions/Grants 317,427 Forecast Update Adjust for Preperty Tax/VLF In-lieu 457,483 Forecast Update Adjust for Sales Tax/Public Safety Sales Tax 16,356 Forecast Update Adjust for Local Sales Tax (Measure Y/G)127,000 Forecast Update Adjust for Transient Occupancy Tax 228,174 Forecast Update Adjust for Franchise Fees 135,949 Forecast Update Adjust for Utility Users Tax (154,627) Forecast Update Adjust for Public Safety Fees 23,509 Forecast Update Adjust for development fees 1,327,734 Forecast Update Adjust for leisure/cultural fees 86,500 Forecast Update Adjust for General Government Fees (20,000) Forecast Update Adjust for Sale of Surplus Property 4,210 Forecast Update Adjust for Interest on Investments 150,000 90,795 2,683,849 2,774,644 COMMUNITY DEVELOPMENT BLOCK GRANT FUND CDBG 2012 13-14 Carry over (10,001) CDBG 2013 13-14 Carry over (105,300) (115,301) - (115,301) PUBLIC ART FUND Forecast Update Adjust for In-lieu fees 20,701 - 20,701 20,701 TOURISM BUSINESS IMPROVEMENT DISTRICT FUND Forecast Update TBID Assessment forecast change tied to TOT 45,620 45,620 45,620 GENERAL PURPOSE CIP FUND CIP Carryforward-Grants 2,649,984 RRST Taft to Pepper Transfer of funds from Hwy 101 Bridge Project (171,379) Marsh St. Bridge Project Carryforward Grants HBRR (Marsh St. Bridge)390,887 2,869,592 - 2,869,592 SUMMARY OF REVENUE BUDGET ADJUSTMENTS B-8 Attachment 1 B1-28 Budget Amendment Pending Name Description Amount Approval Total SUMMARY OF REVENUE BUDGET ADJUSTMENTS TRANSPORTATION IMPACT FEE FUND RRST Taft to Pepper Transfer of funds from Hwy 101 Bridge Project 221,379 221,379 - 221,379 PARKLAND DEVELOPMENT FUND Forecast update Park In-Lieu Fees Collected 116,000 Forecast update Dwelling Unit Fees Collected 10,200 126,200 126,200 OPEN SPACE FUND Forecast Update Subventions and Grants 58,595 58,595 - 58,595 AFFORDABLE HOUSING FUND Forecast Update Subvention and Grants Collected 34,700 Forecast Update Service Charges 229,000 263,700 263,700 WATER FUND Other Revenue Revenue from sale of scrap metal 5,068 Other Revenue Revenue from sale of scrap metal 1,489 Forecast Update Adjust for Water Servcie Charges (875,757) Forecast Update Adjust for Sales to Other Agencies (82,908) Forecast Update Adjust for Development Impact Fees 921,400 Forecast Update Adjust for Connection Charges and Meter Sales 17,500 Forecast Update Adjust for Other Revenues (1,100) 6,557 (20,865) (14,308) SEWER FUND Forecast Update Adjust for Sewer Service Charges (177,300) Forecast Update Adjust for Sales to Cal Poly (54,300) Forecast Update Adjust for Development Impact Fees 401,700 Forecast Update Adjust for Account Set-Up Feess (3,700) Forecast Update Adjust for Connection Charges and Meter Sales 22,300 Forecast Update Adjust for Other Revenues 9,600 198,300 198,300 B-9 Attachment 1 B1-29 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total GENERAL FUND-PUBLIC SAFETY 13-14 Carry Over 97,514 Allocation of ABC Grant 6,467 Use of 2014 Jag Funds for Spillman Dashboard Analytics 10,355 Totals for Police 114,336 - - - 114,336 13-14 Carry Over 140,384 Allocation of 13-14 LHMP Grant 1,033 Allocation of 13-14 FEMA Fire Prevention Grant 31,164 OES engine reimbursement for parts/maintenance 1,223 Credit for Returned Automotive Core 162 Dewberry Consultants, Inc Consulting Services-LHMP 5,806 Staples Business Advantage Fire Station 1 Chairs 2,300 MedStop Urgent Care Medical Exams 1,410 Silverado Avionics, Inc IT Supplies 1,092 Kronos, Inc Training Services 1,088 Mutual Aid Reimbursement Mutual Aid Reimbursement 257,950 SOPC Fire Apparatus SOPC Fire Apparatus 26,000 Totals for Fire 173,966 11,697 - 283,950 469,613 Totals for Public Safety 288,302 11,697 - 283,950 583,949 GENERAL FUND-TRANSPORTATION 13-14 Carryover 2,340 Funds received from code violation 100 Zone 9 streambed clearance 40,000 Transfer of carryover funds from General Gov't 36,604 Browning & Associates Public Works 5 Yr Strategic Plan 371 Michael Di Milo Education Program 1,862 Verdin Marketing Inc Community Outreach 4,307 SP Maintenance Services Inc Downtown Monthly Sweeping 34,993 Browning & Associates Public Works 5 Yr Strategic Plan 371 ATSI Conflict Monitor Tester 894 Browning & Associates Public Works 5 Yr Strategic Plan 371 Peak Racks, Inc Bike Racks 2,300 Atkins North America Prado Rd Roudabout 1,500 SLO County Bicycle Coalition Bicycling Promotional Efforts 5,124 SLO County Bicycle Coalition Bicycle Transportation Plan 2,422 Central Coast Transportation Land Use & Circulation Updates 25,980 Browning & Associates Public Works 5 Yr Strategic Plan 371 Hamner Jewell & Associates Land AQ Right of Way Service 1,142 Peak Racks, Inc Parking Rack Plaques 2,997 PRP Companies Printing Services 1,236 SLO Regional Rideshare Advertising Projects 3,000 Totals for Transportation 79,044 89,241 - - 168,285 GENERAL FUND-LEISURE, CULTURAL AND SOCIAL SERVICES 13-14 Carryover 28,100 Facility Permit Fee (Honey Hut delivery)453 Tennis Landscape Landscape Maintenance 856 K D Janni Landscaping, Inc.Landscape Maintenance 333 Browning & Associates Public Works 5 Yr Strategic Plan 371 Browning & Associates Public Works 5 Yr Strategic Plan 371 Floor Connection Flooring Installation 7,030 Browning & Associates Public Works 5 Yr Strategic Plan 371 The Cana Family Video Production of Skate Park 12,575 Gaia Graphics & Associates Design Services 1,565 Floor Connection Parks & Recreation Conference Room Carpeting 1,862 Totals for Leisure, Cultural, and Social Services 28,553 25,335 - - 53,888 SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS B-10 Attachment 1 B1-30 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS GENERAL FUND-COMMUNITY DEVELOPMENT 13-14 Carryover 520,143 Verdin Marketing, Inc.Events Promotion 6,685 Pierre Rademaker Design Style Guide & ID Standard 155 Citygate Associates, LLC Implementation of CDD's Strategic Action Plan 4,014 SWCA Environmental Consultants Towneplace Suites GPA Development 16 Rincon Consultants Tract Project 2353/2428 9,456 Pacific Municipal Consultants Project Management Nine on Rockview 3,033 Flint Strategies, Inc Parking Ordinance Outreach 1,120 Matrix Design Group, Inc Land Use & Circulation Element 166,692 Johnson Aviation Lan Use & Circulation Element 8,353 SWCA Environmental Consultants Towneplace Suites G/Plan 17,593 SWCA Environmental Consultants Digital West Plan/Review 5,985 Rincon Consultants Contract Planning Service 37,320 Pacific Municipal Consultants Project Management 2,359 Pacific Municipal Consultants Midstate Property Pre Appraisal 64 Bureau Veritas North America Public Improvement Plans 2,904 Cannon Corporation Utility Plan Review 25,000 Filippin Engineering, Inc Engineering Services 24,900 Rincon Consultants, Inc Contract Planning LUCE 85,960 City of San Luis Obispo Development Services 107,877 City of San Luis Obispo Development Services 275,018 California Code Check Building Plans Checks 1,772 California Code Check Building Plans Checks 6,344 California Code Check Building Plans Checks 441 Bureau Veritas North America Project Management 6,231 Bureau Veritas North America Project Management 3,116 Rincon Consultants, Inc Contract Planning 29,100 Browning & Associates Public Works 5 Yr Strategic Plan 371 Browning & Associates Public Works 5 Yr Strategic Plan 371 SOPC for REOC SOPC for Revenue Enhancement Oversight Comm.7,250 Totals for Community Development 520,143 832,250 - 7,250 1,359,643 GENERAL FUND-GENERAL GOVERNMENT 13-14 Carryover 360,094 Transfer of carryover funds to Transportation (36,604) Transfer of legal fees to Parking Fund (69,738) Green, Debortnowsky & Quintanilla Legal Services 2,500 Liebert, Cassidy, Whitmore Legal Services 10,944 Burke, Williams & Sorensen LLP Legal Services 69,739 Law Offices of Jones & Mayer Legal Services 2,179 Silver & Wright LLP Legal Services 23,085 Jarvis, Fay, Doporto & Gibson LLP Legal Services 5,016 Software Solutions Team Budget Document Automation 9,600 Hinderliter Dellamas & Associates Sales Tax Review and Audit 3,600 NBS Government Finance Group User/Regulatory Fee Study 11,635 Muniservices, LLC Comp Utility Tax Program 3,725 Donal Maynor Utility User Tax Compliance 1,875 HDL Coren & Cone Contract Services for Sales Tax Report 5,479 Maximus, Inc Mandated Costs Claim Preparation 760 Maximus, Inc Mandated Costs Claim Preparation 2,429 Maximus, Inc Mandated Costs Claim Preparation 2,397 Sungard Public Sector, Inc Community Plus Upgrade 520 Mahoney & Associates Consulting FTA Cost Allocation Plan 4,500 CITIG, Inc Upgrade VM Ware Cluster 201 Quickstart Network Admin Training 4,990 Sterling Communications Preventative Maintenance 6,484 CITIG, Inc PD VM Ware View Build 7,408 Woolpert, Inc Energov 8,506 VPN Dynamics Firewall & VPN Training 10,782 ECS Imaging, Inc Laserfiche Weblink Portal 5,250 Silverado Avionics, Inc IT Supplies 5,459 B-11 Attachment 1 B1-31 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS Liebert, Cassidy, Whitmore Legal Services 12,613 Browning & Associates Public Works Five Yr Strategic Plan 371 Servicemaster Janitorial Contract Services 60 Browning & Associates Public Works Five Yr Strategic Plan 371 3 Day Blinds Purchase of Blinds 724 San Luis Powerhouse, Inc Emergency Generator Maintenance 9,311 Browning & Associates Public Works Five Yr Strategic Plan 371 Jim Ritterbush Repair Services Emergency Vehicle Repair 9,720 Cartegraph Systems, Inc On-site Training 10,800 Boysen Ranch Adjustment Boysen Ranch Adj (funding in Boysen Ranch Fund)(7,500) Totals for General Government 253,752 253,405 - (7,500) 499,657 GENERAL FUND TOTAL 1,169,794 1,211,928 - 283,700 2,665,422 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Operating to Capital (152,892) CIP Carryforward CIP Carryforward 37,681 Totals, CDBG Fund (152,892) - 37,681 - (115,211) LAW ENFORCEMENT GRANT FUND 99899999 Completed Projects 607 - Totals, Law Enforcement Grant Fund - - 607 - 607 PUBLIC ART FUND 99899999 Completed Projects 18,510 90752965 Skate Park Improvements 33,600 91017965 Meadow Park Comm Garden 7,601 91018965 9-11 Memorial 63,149 91128965 Library Mural Project 12,369 90455965 Fountain at Marsh/Hig 235 90525965 Public Art Maintenance 7,739 91286965 Public Art Master Plan 40,000 91287965 Kyle Roofing Mural 5,000 Jeffrey Laudenslager Artwork Design & Fabrication 62,500 Jed Joyce Santa Rosa Skate Park 66,000 John Jones Santa Rosa Skate Park 66,000 Bridge Art Project from General CIP to Public Art 47,200 Totals, Public Art Fund 194,500 188,203 47,200 429,903 TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) FUND Allocation of 13-14 fund balance 148,402 Totals, TBID Fund - 148,402 148,402 GENERAL PURPOSE CIP FUND 91320953 Measure Y Contingency to Downtown Renewal 79,000 RRST Taft to Pepper Transfer of funds from Hwy 101 Bridge Project (171,379) 91250953 Transfer Facility Maint project to Fac. Maint. Fund (94,326) Penfield & Smith Storm Drain Repairs 14 Terra Verde Environmental On-Call Agreement 5,000 Questa Engineering Corp Flood Plan Phase II 600 Garcia and Associates Archaelogical Study 2,441 Dokken Engineering Marsh St Bridge 56,873 Dokken Engineering Marsh St Bridge 240,722 Dokken Engineering Marsh St Bridge 144,085 Toste Construction Removal & Install Signs 810 SWCA Environmental Consultants Foothill Reveg Monitoring 9,826 Applied Earthworks, Inc Achaeological Monitoring 4,881 B-12 Attachment 1 B1-32 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS Pro Line Striping, Inc Striping Highland Dr 6,045 Woolpert, Inc Maint & Asset Management System 12,492 Allen Instruments & Supplies Global Positioning 1,276 Pacific Builders Construction Services 22,500 Tyler Technologies Purchase FoxPro Project 16,000 Vision Internet Providers, Inc Website Project 9,044 Accuvant, Inc Wireless Network Upgrade 4,202 Thinkstream, Inc Spillman CAD API Integration 10,000 Solutions II Inc CAD/RMS 14,028 Fraser Seiple Architects Acrchitectural Design Services 6,220 Filippin Engineering, Inc Santa Rosa Skate Park 46,887 RRM Design Group Play Equipment Replacement Project 4,652 RRM Design Group Meadow Park Playground Renovation 339 RRM Design Group Sinsheimer Design Services 49,660 The Cana Family Santa Rosa Skate Park 754,000 Dokken Engineering Bob Jones Bikeway Connection 3,505 Zumar Industries, Inc Professional Sign & Fab 28,823 Toste Construction Bicycle Exit 6,952 Rowley International, Inc Design Services 7,975 Dokken Engineering Mid Higuera Bypass 41,835 Wallace Group Mid Higuera Bypass 21,191 Toste Construction Removal of Traffic Signs 6,590 PD Programming, Inc Crash Magic Software 5,627 90766952 Design-City Gateways 2,212 90766953 Construction-City Gateways 125,000 90495953 Construction-City to Sea Greenway 26,983 91006963 Fox Pro Replacement 41,553 91022963 Laserfiche 906 91167963 EM Comm Ctr Blade WRN 13,841 91194956 GPS System replacement 2,245 90658956 Construction-Loma Adobe 7,041 91303950 Land Acquisition-Homeless Service Ctr 250,000 90106953 Construction-SPRR Freight Warehouse (429) 91193953 Construction-Damon Garcia Pkg Lot 824 91211956 Central Irr Controler 7,590 91247953 Construction-Mission Plaza Railing 7,500 91300953 Construction-Mission Plaza Mstr Plan 100,000 99110957 Laguna Lake Dredging 13,721 91151952 Design-Pool Boiler Replace 5,250 91151953 Construction-Pool Boiler Replace 20,125 91208952 Olympic Pool Replaster 11,500 91107953 City Hall Entry Steps 7,499 91209953 Sinsheimer Pkg 73 91250953 Facility Maint Master Plan 27,971 90346951 Study-Street Reconstruction & Resurfacing Main Acct 91,310 90346952 Design-Street Reconstruction & Resurfacing Main Acct 120,000 90346954 Construction Management-Street Reconst. & Resurfacing Maint Acct 70,101 90646952 Design-Toro St Ck Bank Stabil 450 90646957 Environmental Review-Toro St Ck Bank Stabil 865 90742952 Design-Master CMP Replace 36,392 90742953 Construction-Master CMP Replace 38,058 90742954 Construction Management-Master CMP Replace 16,400 90849953 Construction-Sidewalk Repair 524 90943956 Equipment Acquisition-Street Sign Maint 57,381 90979953 Construction-Downtown Beautification 105 91079963 Computer Acquisition-Util Asset Mgmt Sys 5,932 91100953 Construction-Toro St Bank Stabil 30,000 91165952 Design-Broad St Bank Reinforce 2,381 91165957 Environmental Review-Broad St Bank Reinforce 5,807 99501952 Design-Neighborhood Traffic 3,543 90346953 Construction-Master Street R&R 486,892 91079956 Equipment Acquisition-Util Asset Mgmt Sys 40,000 91161953 Construction-Street Reconst 2013 13,441 91206952 Design-Prado Bridge Deck Ovrl 2,300 B-13 Attachment 1 B1-33 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS 91210953 Construction-CDBG Curb Ramps 2014 5,511 91245953 Construction-Johnson Underpass Pum 190,000 99501953 Construction-Neighborhood Traffic 33,718 99868953 Construction-Sidewalk Access Imp 11,859 90740952 Design-Directional Sign Prgm 9,743 90740953 Construction-Directional Sign Prgm 31,184 90884953 Construction-Traffic Oper Report Implm 39,706 90398953 Construction-Traffic Safety Report (2,751) 90572953 Construction-Bicycle Facility Imrov 74,112 91098953 Construction-Bob Jones Trail Conn 3,908 91294953 Construction-50 Higuera Widening 49,900 90752952 Design-Skate Park Imprv 9,800 90752953 Construction-Skate Park Imprv 299,300 90752954 Construction Management-Skate Park Imprv 100,000 90851954 Construction Management-Play Equip Rep-Meadow 3,598 90883965 Public Art-Bridge Enhance Art 47,200 91029952 Design-Santa Rosa Prk Play 5,762 91029953 Construction-Santa Rosa Prk Play 51,609 91101963 Cumputer Acquisition-PR Admin Software Rep 1,296 91103952 Design-Play Equip Repl 6,065 91103953 Construction-Play Equip Repl 88,858 91103954 Construction Management-Play Equip Repl 90,000 91166951 Study-Sinsheimer Stadium Bl 20,556 90650952 Design-Sinsheimer Equip Repl 15,211 90650953 Construction-Sinsheimer Equip Repl 89,693 91246953 Construction-Playground Equip 13-1 210,000 91246954 Construction Management-Playground Equip 13-1 50,000 91096956 Equipment Acquisition-CAD Server Replacement 60,244 90649952 Design-Mid-Hig By-Pass Chann 81,366 90581957 Environmental Review-Silt Removal 90,000 90741953 Construction-RRST Hwy 101 BR 376,899 90821953 Construction-RRST Phase 4A 158,464 90872953 Construction-Gen Traf Signal Imp 48,477 90875952 Design-HWY 227 Sig Upgrades 550 90875953 Construction-HWY 227 Sig Upgrades 34,022 91111952 Design-RR Safety Trail Taft/Pepper 300,000 90875956 Equipment Acquisition-HWY 227 Sig Upgrades 680 91288952 Design-Calle Joaquin Pk & Ride 40,000 91288953 Construction-Calle Joaquin Pk & Ride 325,000 91293953 Construction-Foothill/Calif RR X 370,000 91294950 Land Acquisition-50 Higuera Widening 2,000 91294952 Design-50 Higuera Widening 30,000 91294953 Construction-50 Higuera Widening 416,800 91295952 Design-Traffic Sfty & Oper Imp 300,484 Move Bridge Art Project to Public Art Fund (47,200) SOPC Santa Rosa Ballfield Netting 40,000 SOPC Bike & Ped Maintenance Projct 29,200 Totals, General CIP Fund (186,705) 1,545,095 5,864,111 22,000 7,244,501 TRANSPORTATION IMPACT FEE FUND Budget reduced for closed encumbrance (2,678) Appropriation of TIF funds for Prado Bridge Proj.390,000 RRST Taft to Pepper Transfer of funds from Hwy 101 Bridge Project 361,379 R Burke Corporation Palm Tree Maintenance 1,200 TRC Engineers, Inc Design Services/Engineering Work 38,426 Wallace Group Topographic Survey 11,200 Southstart Engineering Engineering LOVR Interchange 256,085 Cambridge Systematics Inc Services Traffic Model 6,746 MNS Engineers, Inc Construction Management Services/LOVR 418,835 Whitaker Construction Railroad Safety Trail Hathway 3,500 R Burke Corporation Railroad Safety Trail 2,678 99899999 Completed Projects 116 90073953 Mid-Higuera Impr Proj 42,724 B-14 Attachment 1 B1-34 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS 91161953 Construction-Street Reconst 2013 1,500 90741952 Design-RRST HWY 101 BR 10,909 90949951 Study-Traffic Model Update 133,941 90950951 Study-RR Safety Tr Lighting 5,000 90950952 Design-RR Safety Tr Lighting 2,175 90950953 Construction-RR Safety Tr Lighting 60,000 90950954 Construction Management-RR Safety Tr Lighting 10,000 91111950 Land Acquisition-RR Sfty Trl Taft/Pepr 355,000 91111952 Design-RR Sfty Trl Taft/Pepr 293,477 99821950 Land Acquisition-LOVR Interchange 217,583 90398953 Construction-Traffic Safety Report 210 90572953 Construction-Bicycle Facility Impr 56,634 90653951 Study-Traffic Volume Counts 28,792 91252951 Study-Prado Rd Bridge Widen 3,292 91276951 Study-Traffic Counts 2014 6,664 99615953 Construction-Bicycle Projects 37,470 99821954 Construction Management-LOVR /US 101 Interchange 157 748,701 738,670 1,265,644 - 2,753,015 FLEET REPLACEMENT FUND Reduce Budget for 2013-14 Chargeback (80,837) National Auto Fleet Group Water Truck Cab 102,805 Hanford Toyota Vehicle Purchases 26,535 Hanford Toyota Vehicle Purchases 27,542 Altec Industries, Inc Purchase Signal Truck 80,837 Woolpert, Inc Maintenance & Asset Management System 1,972 Quinn Company WRFF Tractor-Loader 129,147 Turf Star, Inc Turf Mower 60,610 National Auto Fleet Group 2 Ford Interceptor Sedans 12,104 The Bancorp Bank Patrol Sedan Lease 13,556 National Auto Fleet Group 4 PD Interceptor Utility 43,200 National Auto Fleet Group 4 PD Interceptor Utility 129,275 Downtown Ford Sales Police Pickup Vehicle 45,876 Pierce Manufacturing Fire Engine 548,351 10-8 Retrofit Inc Emergency Vehicle Access 3,230 10-8 Retrofit Inc Emergency Vehicle Access 3,230 National Auto Fleet Group Fire Inspector Vehicle 40,169 National Auto Fleet Group Fire Chief Vehicle 40,169 99899999 Completed Projects 1,560 91238956 Equipment Acquisition-Parks Maint Equipment 1,461 99830956 Equipment Acquisition-Parks Maint Pickup 32,300 90255956 Equipment Acquisition-Pickup Streets 62,300 91079963 Computer Acquisition-Util Asset Mgmt Sys 9,725 91221956 Equipment Acquistion-WRF 4WD Loader 13-14 1,553 90118956 Equipment Acquistion-Fleet Maint Pickup 658 91232956 Equipment Acquistion-Transport Eng Trk/Van 1,256 91025956 Equipment Acquistion-Police SUV 48,489 91171956 Equipment Acquistion-PD Marked Patrol Sedan 5,020 90576956 Equipment Acquistion-PD Admin Vehicles 38,200 91190956 Equipment Acquistion-PD Marked Utility Vehicle 3,254 91230956 Equipment Acquistion-PD Unmarked Det Vehicle 89,846 91172956 Equipment Acquistion-Command Vehicle 658 90424956 Equipment Acquistion-Fire Admin Sedan 251 91231956 Equipment Acquistion-Fire Prevention SUV 601 Totals, Fleet Replacement Fund (80,837) 1,308,607 297,132 - 1,524,902 INFORMATION TECHNOLOGY REPLACEMENT FUND 91237956 Equipment Acquistion-Document Management 77,948 91240956 Equipment Acquistion-Enterprise Storage Growth 1,092 91241956 Equipment Acquistion-Firewall Replacement 157,500 91242956 Equipment Acquistion-Network Security Upgrade 106,800 B-15 Attachment 1 B1-35 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS 91243956 Equipment Acquistion-VPN Replacement 108,300 91225956 Equipment Acquistion-Public Safety Video Pro 1,772 91236956 Equipment Acquistion-MDC & In-Car Video 693,000 91239956 Equipment Acquistion-ER Comm Ctr Blade Com 180,069 Totals, IT Replacement Fund - - 1,326,481 - 1,326,481 MAJOR FACILITY REPLACEMENT FUND 91250953 Move Fac Maint Project from General CIP 94,326 Fraser Seiple Architects Design Services 30,964 Fraser Seiple Architects HVAC Unit Replaces PD 7,881 Omni Design Group, Inc Sinsheimer Stadium Stairs 1,200 91290952 Design-City Hall Renovation 4,036 91290953 Construction-City Hall Renovation 215,000 99899999 Completed Projects 13,097 91255952 Design-Sinsheimer Stair Repl 8,200 91209953 Construction-Sinsheimer Pkg Resurf 79,761 91260952 Design-CH Perimeter Drain Repl 1,475 91263953 Construction-Jack House Ext Painting 25,000 91251952 Design-PD Admin HVAC Repl 3,667 91258952 Design-Fire St 2 Dorm Remodel 2,070 Totals, Major Facility Replacement Fund 94,326 40,045 352,306 - 486,677 PARKLAND DEVELOPMENT FUND Earth Systems Pacific Santa Rosa Skate Park 22,665 Prowest Constructors Santa Rosa Skate Park 806,312 99899999 Completed Projects 715 99031950 Land Acquisition-Open Space-Parkland A 3,360 90752953 Construction-Skate Park Impr (6,261) Totals, Parkland Development Fund - 828,977 (2,186) - 826,791 OPEN SPACE PROTECTION California Conservations Corps Prefumo Enhancements 16,200 90768955 Site Preparation-Creek Mitigation 15,000 91112950 Land Acquisition-Froom Ranch Improvement 4,549 91112953 Construction-Froom Ranch Improvement 55,638 91112957 Environmental Review-Froom Ranch Improvement 5,000 91195953 Construction-Calle Joaquin Ag Resr 58,595 99837950 Land Acquisition-Open Space Protection 200,000 Pismo Preserve 75,000 Totals, Open Space Protection Fund 75,000 16,200 338,782 - 429,982 AIRPORT AREA IMPACT FEE FUND Omni Means, Inc Design Services 75,000 30,156 Totals, Airport Area Impact Fee Fund - 30,156 - - 30,156 AFFORDABLE HOUSING FUND 91034950 Land Acquisition-313 South Street 650,000 Totals, Affordable Housing Fund - - 650,000 - 650,000 WATER FUND 13-14 Carryover 286,500 From sale of scrap metal for small tools 5,068 From sale of scrap metal for water meters 1,489 State mandated drought measures 30,000 Allen Instruments & Supply Global Positioning 1,276 Springbrook Software, Inc Billing Software Upgrade 1,667 B-16 Attachment 1 B1-36 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS Wallace Group Design Services for Water Pump 692 Accuvant Inc Wireless Network Upgrade 115 Cannon Corporation Design Services Monterey St 26,036 Hanford Toyota 5 Vehicle Purchases 23,826 Hanford Toyota 5 Vehicle Purchases 23,826 Woolpert Inc Maintenance & Asset Management System 13,092 MNS Engineers, Inc 16" Waterline Replacement 33,786 Filippin Engineering Inc Project Management SCADA 20,351 Cannon Corporation Design Services for SCADA 121,209 Filippin Engineering Inc Project Management SCADA 2,368 Filippin Engineering Inc Plan Check Services 2,100 Cannon Corporation Utilities Plan Review Services 173 Verdin Marketing Inc Community Outreach 9,778 Wallace Group Inc Engineering Services W/M Plan 22,200 Harris & Lee Environment WTP Safety Study 11,822 Brownstein Hyatt Farber Salinas Dam Safety 3,975 FGL Environmental Inc Water Lab 7,014 Olin Corp Sodium Hypochlorite 14,723 Polydyne Inc Liquid Cationic Polymer 18,608 Brenntag Pacific Inc Sodium Silicon Fluoride 12,000 Univar USA Inc Sodium Hydroxide 10,000 Chemtrade Chemicals US Liquid Alum Sulphate 12,750 Sterling Water Technology Aluminum Sulphate 22,307 Electricraft Inc Power Supply Replacement 21,921 99899999 Completed Projects 90,033 91022963 Computer Acquisition-Laserfiche 465 90490953 Construction-Telemetry Sys Upgrade 1,495,744 91237956 Equipment Acquistion-Document Management 5,200 91241956 Equipment Acquistion-Firewall Replacement 11,500 91242956 Equipment Acquistion-Network Security Upgrade 6,500 91243956 Equipment Acquistion-VPN Replacement 15,500 91079963 Computer Acquisition-Util Asset Mgmt Sys 17,719 91114956 Equipment Acquisition-Water Reuse Auto Impr 16,150 91147953 Construction-Trench Repair (12,277) 91148953 Construction-Fire Lateral Reimb 105,000 91149953 Construction-Raise Valve Covers 26,625 91178952 Design-Wtr Pump Station Anly 3,404 91192952 Design-16" Waterline Replace 33,766 91194956 Equipment Acquistion-GPS System Replacement 1,443 90227953 Construction-Dist Sys Impr Master 1,342,242 91212952 Design-WTP Air Compressor RP 10,000 91213951 Study-Stenner Cyn Wtrln Rep 14,935 91213952 Design-Stenner Cyn Wtrln Rep 35,000 91215956 Equipment Acquistion-Util Admin Sedan 13-14 16,200 91216956 Equipment Acquistion-Wtr Cust Svc Truck 13-14 474 91217956 Equipment Acquistion-WTP Compact Truck 13-14 474 99653953 Construction-WTP Major Equip Maint 42,425 Totals, Water Fund 323,057 437,615 3,278,221 - 4,038,893 PARKING FUND 13-14 Carryover 73,819 Parker & Associates Catalogue Artifacts 842 Palm 8,242 Watry Design Inc Palm Nipomo Parking Structure 1,290 Watry Design Inc Palm Nipomo Parking Structure 27,591 Allen Instruments & Supply Global Positioning 1,276 Electricraft Inc Parking Garage Light Replacement 3,365 Sonoma State University Archaeological Services 5,000 IPS Group Inc Parking Meters 216 Flint Strategies Inc Consulting Services 1,820 Burke, Williams & Sorensen LLP Attorney Retention 13,213 Walker Parking Consultants Inc Organizational Assessment 22,500 Browning & Associates Public Works 5 Yr Strategic Plan 371 99899999 Completed Projects 172,878 B-17 Attachment 1 B1-37 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS 99899999 Completed Projects (49,855) 91022963 Computer Acquisition-Laserfiche 116 91237956 Equipment Acquistion-Document Management 2,400 91241956 Equipment Acquistion-Firewall Replacement 5,500 91242956 Equipment Acquistion-Network Security Upgrade 3,100 90436956 Equipment Acquistion-Utility Scooter 16,347 90960956 Equipment Acquistion Upgrade Pkg Struct Equip 113,000 91173953 Construction-Marsh St Paint-Phase2 84,701 91194956 Equipment Acquistion-GPS System Replacement 1,443 99860956 Equipment Acquistion-Parking Vehicle 5,802 90435950 Land Acquisition-Palm-Nipomo Pkg Garage 3,627 90435952 Design-Palm-Nipomo Pkg Garage 1,040,282 90435957 Environmental Review-Palm-Nipomo Pkg Garage 222,200 91226953 Construction-Marsh St Pkg Light RP 70,946 91227953 Construction-Retrofit 919 Pkg Sta 29,700 91227956 Equipment Acquistion-Retrofit 919 Pfk Sta 20,000 91289953 Construction-Palm St Tile Removal 61,485 Totals, Parking Fund 73,819 84,884 1,803,672 - 1,962,375 SEWER FUND 13-14 Carryover 360,200 Filippin Engineering, Inc Project Management SCADA 2,368 Verdin Marekting Inc Community Outreach 10,586 Larry Walker Associates Permit Reissuance Support 12,093 Larry Walker Associates 00262.03/00262.04 8,352 Somach Simmons & Dunn Attorney-Client Fee Contr 46,105 Allen Instruments & Supply Global Positioning 1,276 Dokken Engineering Engineering Services Marsh St Bridge 18,650 Filippin Engineering, Inc Sewerline Replacement Rachel/Chorro 1,987 Filippin Engineering, Inc Sewerline Replacement Stafford 9,374 Springbrook Software Inc Billing Software Upgrade 1,667 Terra Verde Environmental Calle Joaquin Permitting 19,501 Michael K. Nunley Design Services Margarita/Foothill 57,760 Water System Consulting Wastwater Infrastructure Replacement 68,527 Hanford Toyota 5 Vehicle Purchases 26,535 Woolpert Inc Maintenance & Asset Management System 13,092 Quinn Company WRRF Tractor-Loader 29,841 Filippin Engineering, Inc Jennifer St Railroad Crossing 13 Filippin Engineering, Inc Higuera/Marsh Sewerline 2,968 D-Kal Engineering Santa Rosa Sewerline Replacement 138,372 Filippin Engineering, Inc Santa Rosa Sewerline Replacement 4,507 Michael K. Nunley Design Services Margarita/Foothill 97,661 Filippin Engineering, Inc Santa Rosa Sewerline Replacement 28 Raminha Construction Laguna Lift Station 42,769 AECOM, USA Calle Joaquin Laguna Lift 110,094 AECOM, USA Calle Joaquin Laguna Lift 40,915 Water System Consulting Services for WRRF Upgrade 1,714,247 Filippin Engineering, Inc Constructability Review Services 15,560 FGL Environmental, Inc Water Quality Lab 36,560 Engel & Gray Inc Bio Solids Contract 4,602 Kemira Water Solutions I Ferrous Chloride 131 Olin Corp Sodium Hypochlorite 64,688 Univar USA, Inc Sodium Bisulfite 66,254 Hill Brothers Chemical Purchase & Del MGOH 2,272 99899999 Completed Projects 242,977 91022963 Computer Acquisition-Laserfiche 310 91237956 Equipment Acquistion-Document Management 3,800 91241956 Equipment Acquistion-Firewall Replacement 8,500 91242956 Equipment Acquistion-Network Security Upgrade 5,500 91243956 Equipment Acquistion-VPN Replacement 6,200 91063956 Equipment Acquistion-Scada Upgrade Integration 32,153 91079963 Computer Acquisition-Util Asset Mgmt Sys 10,723 91116953 Construction-Laguna Lift Sta Repl 125,895 B-18 Attachment 1 B1-38 City Council/ CM Approved Budget Encumbrance CIP Pending Combined Name/Project #Description:Amendments Rollover Carryforward Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS 91116954 Construction Management-Laguna Lift Sta Repl 445 91117951 Study-WW Infr Repl Strategy 450 91120953 Construction-WRF Major Maintenance 630,088 91150952 Design-WRF Energy Efficiency 1,325 91180953 Construction-Santa Rosa Swrln Repl 101,191 91185951 Study-Jennifer RR/Hig-Marsh 7,593 91194956 Equipment Acquistion-GPS System replacement 1,443 90239953 Construction-Master Coll Sys Improve 418,047 90480952 Design-Marsh St Bridge Repair 21,350 91118953 Construction-Calle Joaquin Lift Sta 2,950,760 91118954 Construction Management-Calle Joaquin Lift Sta 300,000 91150953 Construction-WRF Energy Efficiency 6,800,054 91214952 Design-Margarita Lift Sta 23 91215956 Equipment Acquistion-Util Admin Sedan 13-14 16,200 91218952 Design-Madonna Lift Sta 99,954 91219951 Study-WRF Upgrade 150,000 91219952 Design-WRF Upgrade 1,499,918 91220956 Equipment Acquistion-WWC Pickup 29,500 91221956 Equipment Acquistion-WRF 4WD Loader 13-14 359 91222956 Equipment Acquistion-WRF Pickup 265 91224952 Design-Foothill Lift Station 79 91264953 Construction-Swrline Repl Rachel R 880 91265953 Construction-Swrline Repl Stffrd/K 6,636 Totals, Sewer Fund 360,200 2,669,354 13,472,618 - 16,502,172 TRANSIT FUND 13-14 Carryover 68,000 Allen Instruments & Supply Global Positioning 1,276 Browning & Associates Public Works 5 Yrs Strategic Plan 371 Ridership Development Co Consultant Services 1,372 Totals, Transit Fund 68,000 3,019 - - 71,019 WHALE ROCK FUND Cannon Corporation Design Services for SCADA 12,728 Converse Consultants MBS Cicil Engineering Assessment 2,653 90490952 Design-Telemetry Sys Upgrade 25,115 90490953 Construction-Telemetry Sys Upgrade 350,000 90069952 Design-Old Creek Habitat Pla 145,316 Totals, Whale Rock Fund - 15,381 522,355 - 537,736 B-19 Attachment 1 B1-39 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget Pending 2013-14 Budget Budget Amendments Approval General Fund Operating Transfers In Gas Tax Fund 1,460,290 1,141,700 1,141,700 TDA Fund 49,169 54,800 54,800 Tourism BID Fund 24,356 25,159 26,072 913 Affordable Housing Fund 17,000 17,000 17,000 Transportation Impact Fee Fund 250,000 250,000 Fleet Replacement Fund 35,000 Utility Billing Control 2,770 Sewer Enterprise Fund Parking Enterprise Fund General Purpose CIP 51,000 CIP Grant Debt Service Fund Total operating transfers in 1,639,585 1,488,659 1,489,572 0 913 Operating Transfers Out Insurance Benefit Fund (280,000)(280,000) Community Development Block Grant (52,493) (74,611) (74,611) General Purpose CIP (5,535,900) (2,285,700)(2,433,900)(79,000) (69,200) Open Space Protection Fund (200,000) (200,000) (275,000)(75,000) Fleet Replacement Fund (411,360) (532,600) (532,600) Debt Service Fund (3,550,964) (5,576,862) (5,381,727)195,135 Information Technology Fund (565,500) (967,100) (967,100) Major Facility Replacement Fund (852,700) (551,400) (551,400) Public Art Fund (18,185) (29,900)(29,900) Parking Fund (69,738)(69,738) Total operating transfers out (11,187,102) (10,498,173)(10,595,976)(223,738)125,935 Total Operating Transfers (9,547,517)(9,009,514)(9,106,404)(223,738)126,848 Community Development Block Grant Fund Operating Transfer In Park Hotel Fund General Fund 52,493 74,611 74,611 52,493 74,611 74,611 Gas Tax Fund Operating Transfer Out General Fund (1,460,290)(1,141,700)(1,141,700) Transportation Development Act Fund Operating Transfer Out General Fund (49,169)(54,800)(54,800) Tourism Business Improvement District Fund Operating Transfer Out General Fund (24,356)(25,159)(26,072)(913) 2014-15 B-20 Attachment 1 B1-40 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget Pending 2013-14 Budget Budget Amendments Approval 2014-15 Information Technology Replacement Fund Operating Transfer In General Fund 565,500 967,100 967,100 Public Access Channel Fund 27,947 Total Operating Transfers 593,447 967,100 967,100 0 Sewer Enterprise Fund Operating Transfer In Wastewater Dev Impact Fee Fund 73,770 Utility Billing Control 46,372 Total Transfers In 120,142 Operating Transfer Out Insurance Benefit Fund (22,200)(22,200) General Fund Total Operating Transfers 120,142 (22,200)(22,200)- Wastewater Development Impact Fee Fund Operating Transfer Out Sewer Fund (73,770) Parking Enterprise Fund Operating Transfer In General Fund 69,738 69,738 Operating Transfer Out Insurance Benefit Fund (5,400)(5,400) General Fund Total Operating Transfers (5,400)64,338 69,738 - Water Enterprise Fund Operating Transfer In Utility Billing Control 62,805 Operating Transfer Out Insurance Benefit Fund (20,800)(20,800) Total Operating Transfers 62,805 (20,800)(20,800) Transit Enterprise Fund Operating Transfer Out Insurance Benefit Fund (1,400)(1,400) B-21 Attachment 1 B1-41 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget Pending 2013-14 Budget Budget Amendments Approval 2014-15 Insurance Benefit Fund Operating Transfer In General Fund 280,000 280,000 Water Enterprise Fund 20,800 20,800 Sewer Enterprise Fund 22,200 22,200 Parking Enterprise Fund 5,400 5,400 Transit Enterprise Fund 1,400 1,400 Whale Rock Commission 12,900 12,900 Total Operating Transfers 342,700 342,700 0 Whale Rock Commission Operating Transfer Out Insurance Benefit Fund (12,900)(12,900) General Purpose CIP Operating Transfer In General Fund 5,535,900 2,285,700 2,433,900 79,000 69,200 Major Facility Replacement 59,878 Debt Service 850,775 Total Transfers In 6,446,553 2,285,700 2,433,900 79,000 69,200 Operating Transfer Out Major Facility Replacement (79,927)(94,326)-94326 General Fund (51,000) Public Art Fund (62,500)(47,200)(47,200) Total Transfers Out (193,427)0 (141,526)(94,326)(47,200) Total Operating Transfers 6,253,126 2,285,700 2,292,374 (15,326)22,000 Transportation Impact Fee Fund Operating Transfer Out General Fund (250,000)(250,000) Open Space Protection Fund Operating Transfers In General Fund 200,000 200,000 275,000 75,000 Fleet Replacement Fund Operating Transfers In General Fund 411,360 532,600 532,600 Operating Transfers Out General Fund (35,000) Total Operating Transfers 376,360 B-22 Attachment 1 B1-42 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget Pending 2013-14 Budget Budget Amendments Approval 2014-15 Debt Service Fund Operating Transfer In General Fund 3,550,964 5,576,862 5,381,727 (195,135) Operating Transfer Out General Fund (850,775) Total operating transfers 2,700,189 5,576,862 5,381,727 (195,135) Major Facility Replacement Fund Operating Transfer In General Fund 79,927 551,400 551,400 Capital Outlay Fund 852,700 94,326 94,326 Total Transfers In 932,627 551,400 645,726 94,326 Operating Transfer Out Capital Outlay Fund (59,878) Total Operating Transfers 872,749 551,400 645,726 94,326 Park Hotel Fund Operating Transfer Out CDBG Fund Affordable Housing Fund Operating Transfer Out General Fund (17,000)(17,000)(17,000) Public Art Fund Operating Transfer In General Fund 18,185 29,900 29,900 Capital Outlay Fund 62,500 47,200 47,200 Public Art Fund Total 80,685 29,900 77,100 0 47,200 Public Access Channel Fund (PEG) Operating Transfer Out Information Technology Fund (27,947) Utility Billing Control Operating Transfer Out Water Fund (62,805) Sewer Fund (46,372) General Fund (2,770) Total Operating Transfers (111,947) NET OPERATING TRANSFERS $0 $0 $0 $0 $0 B-23 Attachment 1 B1-43 INTERFUND TRANSACTIONS REIMBURSEMENT TRANSFERS Actual Original Revised City Council/ CM Approved 2013-14 Budget Budget Amendments General Fund ($3,897,500)($3,451,208)($3,897,500) Enterprise and Agency Funds Water 1,268,900 1,167,004 1,167,004 Sewer 1,609,600 1,291,008 1,291,008 Parking 609,300 604,225 604,225 Transit 320,400 290,742 290,742 Whale Rock Commission 89,300 98,229 98,229 Total Enterprise and Agency Funds $3,897,500 $3,451,208 $3,451,208 2014-15 B-24 Attachment 1 B1-44 CHANGES IN FINANCIAL POSITION ALL FUNDS COMBINED Actual Original Revised 2013-14 Budget Budget Revenues Tax Revenues 51,653,200 51,751,800 52,562,165 810,365 2% Fines and Forfeitures 735,983 864,300 864,300 Investment and Property Revenues 897,094 403,400 553,400 150,000 37% Subventions and Grants 8,553,719 24,135,577 27,596,521 3,460,944 14% Service Charges Governmental Funds 11,663,422 8,312,960 10,177,745 1,864,785 22% Enterprise Funds 40,757,136 38,872,208 39,047,700 175,492 0% Trust and Agency Revenues 985,973 1,029,100 1,029,100 Other Revenues 349,016 132,900 120,610 (12,290)-9% Total Revenues 115,595,544 125,502,245 131,951,541 6,449,296 5% Expenditures Operating Programs Public Safety 24,120,011 24,430,510 25,014,459 583,949 2.4% Public Utilities 19,181,100 20,599,500 21,710,859 1,111,359 5% Transportation 7,579,194 8,305,600 8,655,568 349,968 4% Leisure, Cultural & Social Services 7,155,619 7,486,400 7,540,288 53,888 0.72% Community Development 8,389,957 9,048,344 10,403,496 1,355,152 15% General Government 13,228,346 14,798,023 15,297,680 499,657 3% Total Operating Programs 79,654,227 84,668,377 88,622,349 3,953,972 5% Capital Improvement Plan Projects 15,455,759 39,397,151 76,957,001 37,559,850 95.3% Debt Service 7,278,589 10,146,562 9,951,427 (195,135)-2% Total Expenditures 102,388,574 134,212,090 175,530,777 41,318,687 31% Other Sources (Uses) Adjustment to Working Capial Operating Transfers In 14,090,661 12,049,532 12,289,774 240,242 2% Operating Transfers Out (13,876,997)(12,049,532)(12,289,774)(240,242)2% Proceeds from Debt Financings 8,099,775 7,500,000 9,425,351 1,925,351 26% Potential MOA Adjustments Other Sources (Uses)(28,779) Expenditure Savings 1,051,000 1,051,000 Total Other Sources (Uses)8,284,660 8,551,000 10,476,351 1,925,351 23% Revenues and Other Sources Over (Under) Expenditures and Other Uses 21,491,629 (158,845)(33,102,885)(32,944,040) Fund Balance/Working Capital, Beginning of Year 74,889,501 50,339,404 96,381,130 46,041,726 91% Fund Balance/Working Capital, End of Year Prior Year Restatement Reserved for Debt Service 2,043,222 2,043,200 2,043,200 Unreserved 94,337,908 48,137,359 61,235,046 13,097,687 27% Total Fund Balance/Working Capital 96,381,130$ 50,180,559$ 63,278,246$ 13,097,687 26% 2014-15 Variance % change B-25 Attachment 1 B1-45 CHANGES IN FINANCIAL POSITION ALL GOVERNMENTAL FUNDS COMBINED Actual Original Revised 2013-14 Budget Budget Revenues Tax Revenues 51,653,200 51,751,800 52,562,165 810,365 2% Fines and Forfeitures 150,200 156,000 156,000 Investment and Property Revenues 530,339 227,200 377,200 150,000 66% From Other Governments 6,009,271 20,417,577 23,878,521 3,460,944 17% Service Charges 11,663,422 8,312,960 10,177,745 1,864,785 22% Other Revenues 210,123 90,000 69,210 (20,790)-23% Total Revenues 70,216,555 80,955,537 87,220,841 6,265,304 8% Expenditures Operating Programs Public Safety 24,120,011 24,430,510 25,014,459 583,949 2% Transportation 2,882,241 3,321,300 3,489,585 168,285 5% Leisure, Cultural & Social Services 7,155,619 7,486,400 7,540,288 53,888 1% Community Development 8,389,957 9,048,344 10,403,496 1,355,152 15% General Government 13,228,326 14,790,523 15,290,180 499,657 3% Total Operating Programs 55,776,153 59,077,077 61,738,008 2,660,931 5% Reimbursed Expenditures (3,897,400)(3,451,208)(3,451,208) Total Operating Expenditures 51,878,753 55,625,869 58,286,800 2,660,931 5% Capital Improvement Plan Projects 7,839,097 31,553,721 47,294,416 15,740,695 50% Debt Service 3,550,964 5,576,862 5,381,727 (195,135)-3% Total Expenditures 63,268,815 92,756,452 110,962,943 18,206,491 20% Other Sources (Uses) Operating Transfers In 13,907,715 12,049,532 12,220,036 170,504 1% Operating Transfers Out (13,876,997)(11,986,832)(12,227,074)(240,242)2% Proceeds from Debt Financings 850,775 7,500,000 8,736,851 1,236,851 16% Potential MOA Adjustments Other Sources (Uses) Expenditure Savings 1,051,000 1,051,000 Total Other Sources (Uses)881,492 8,613,700 9,780,813 1,167,113 14% Revenues and Other Sources Over (Under) Expenditures and Other Uses 7,829,233 (3,187,215)(13,961,289)(10,774,074)338% Fund Balance, Beginning of Year 34,290,254 24,972,083 42,117,260 17,145,177 69% Prior Year Restatement 34,290,254 24,972,083 42,117,260 17,145,177 69% Fund Balance, End of Year Reserved for Debt Service 2,043,222 2,043,200 2,043,200 Unreserved 40,076,265 19,741,668 26,112,771 6,371,103 32% Total Fund Balance 42,119,487$ 21,784,868$ 28,155,971$ 6,371,103 29% 2014-15 Variance % change B-26 Attachment 1 B1-46 CHANGES IN FINANCIAL POSITION ALL ENTERPRISE AND AGENCY FUNDS COMBINED Actual Original Revised 2013-14 Budget Budget Revenues Fines and Forfeitures 585,783 708,300 708,300 Investment and Property Revenues 366,755 176,200 176,200 From Other Governments 2,544,448 3,718,000 3,718,000 Service Charges 40,757,136 38,872,208 39,047,700 175,492 0% Other Revenues 138,893 42,900 51,400 8,500 20% Trust and Agency Revenues 985,973 1,029,100 1,029,100 Total Revenues 45,378,989 44,546,708 44,730,700 183,992 0% Expenditures Operating Programs Public Utilities 19,181,100 20,599,500 21,710,859 1,111,359 5% Transportation 4,696,953 4,984,300 5,165,982 181,682 4% Leisure, Cultural & Social Services General Government 3,897,420 3,458,708 3,458,708 Total Operating Programs 27,775,474 29,042,508 30,335,549 1,293,041 4% Capital Improvement Plan Projects 7,616,662 7,843,430 29,662,585 21,819,155 278% Debt Service 3,727,624 4,569,700 4,569,700 Total Expenditures 39,119,759 41,455,638 64,567,834 23,112,196 55.8% Other Sources (Uses) Adjustment to Working Capial Operating Transfers In 182,946 69,738 69,738 Proceeds from Debt Financings 7,249,000 Operating Transfers Out (62,700)(62,700) Other Sources (Uses)(28,779)(26,625)(26,625) Potential MOA Adjustments Total Other Sources (Uses)7,403,167 (89,325)(19,587)69,738 Revenues and Other Sources Over (Under) Expenditures and Other Uses 13,662,397 3,001,745 (19,856,721)(22,858,466)-762% Working Capital, Beginning of Year 40,599,247 25,366,321 54,261,645 28,895,324 114% Working Capital, End of Year 54,261,644$ 28,368,066$ 34,404,924$ 6,036,858 21% 2014-15 Variance % change B-27 Attachment 1 B1-47 CHANGES IN FINANCIAL POSITION GENERAL FUND Actual Original Revised 2013-14 Budget Budget Revenues Tax Revenues 51,653,200 51,751,800 52,562,165 810,365 2% Fines and Forfeitures 150,200 156,000 156,000 Investment and Property Revenues 372,700 181,700 331,700 150,000 83% Subventions and Grants 1,238,500 327,000 718,805 391,805 120% Service Charges 7,822,100 6,641,800 8,085,064 1,443,264 22% Other Revenues 151,000 80,000 59,210 (20,790)-26% Total Revenues 61,387,700 59,138,300 61,912,944 2,774,644 5% Total Resources Available in 2013-14 Expenditures Operating Programs Public Safety 23,863,500 24,170,400 24,754,348.6 583,949 2% Transportation 2,882,241 3,321,300 3,489,585 168,285 5% Leisure, Cultural & Social Services 7,155,619 7,486,400 7,540,288 53,888 1% Community Development 6,748,307 7,028,513 8,388,155 1,359,642 19% General Government 13,228,326 14,790,523 15,290,180 499,657 3% Total Program Expenditures 53,877,993 56,797,136 59,462,557 2,665,421 5% Reimbursed Expenditures (3,897,400)(3,451,208)(3,451,208) Total Expenditures 49,980,593 53,345,928 56,011,349 2,665,421 5% Other Sources (Uses) Operating Transfers In 1,639,585 1,488,659 1,489,572 913 0% Proceeds from Debt Issuance Operating Transfers Out (11,187,102)(10,498,173)(10,595,976)(97,803)1% Expenditure Savings 1,051,000 1,051,000 Total Other Sources (Uses)(9,547,517)(7,958,514)(8,055,404)(96,890)1% Revenues and Other Sources Over (Under) Expenditures and Other Uses *1,859,590 (2,166,142)(2,153,809)12,333 -1% Fund Balance, Beginning of Year 18,938,000 14,857,709 20,797,590 5,939,881 40% Prior Year Restatement Fund Balance, End of Year sub-total 20,797,590$ 12,691,567$ 18,643,781$ 5,952,214 47% Fund Balance Components: Designated Reserves (6,603,880)(1,700,000)(3,771,939) Policy Reserve Level @ 20%:(9,996,119)(10,812,626)(11,234,270) Amount Over (Under) Policy Reserve:4,197,592 178,941 3,637,573 * Expenditures exceed revenues due to one-time expenses funded from reserve balance. 2014-15 Variance % change B-28 Attachment 1 B1-48 CHANGES IN FINANCIAL POSITION DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (DBID) FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues Service Charges Assessments 218,267 214,000 214,000 Other Service Charges 150 Total Service Charges 218,417 214,000 214,000 Other Revenues Total Revenues 218,417 214,000 214,000 Expenditures Operating Programs Community Development 218,417 214,000 214,000 Total Expenditures 218,417 214,000 214,000 Other Sources (Uses) Operating Transfers In Total Other Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year 1,122 1,100 1,122 22 2% Fund Balance, End of Year 1,122$ 1,100$ 1,122$ 22 2% Variance % change 2014-15 B-29 Attachment 1 B1-49 CHANGES IN FINANCIAL POSITION TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues 9,040 1,100 1,100 Service Charges 1,217,781 1,257,960 1,303,580 45,620 4% Total Revenues 1,226,821 1,259,060 1,304,680 45,620 4% Expenditures Operating Programs Community Development 1,175,402 1,232,774 1,381,176 148,402 12% Capital Improvement Plan Projects Total Expenditures 1,175,402 1,232,774 1,381,176 148,402 12% Other Sources (Uses) Operating Transfer In Operating Transfer Out (24,356)(25,159)(26,072)(913)4% Total Other Sources (Uses)(24,356)(25,159)(26,072)(913)4% Revenues and Other Sources Over (Under) Expenditures and Other Uses 27,063 1,127 (102,568)(103,695) Fund Balance, Beginning of Year 221,900 147,800 248,963 101,163 68% Prior Year Restatement Fund Balance, End of Year 248,963$ 148,927$ 146,396$ (2,531)-2% 2014-15 Variance % change B-30 Attachment 1 B1-50 CHANGES IN FINANCIAL POSITION GAS TAX FUND Actual Original Revised 2013-14 Budget Budget Revenues From Other Governments - Gasoline Tax 1,460,290 1,141,700 1,141,700 Total Revenues 1,460,290 1,141,700 1,141,700 Other Sources (Uses) Operating Transfers Out (1,460,290)(1,141,700)(1,141,700) Total Other Sources (Uses)(1,460,290)(1,141,700)(1,141,700) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year Variance % change 2014-15 B-31 Attachment 1 B1-51 CHANGES IN FINANCIAL POSITION TRANSPORTATION DEVELOPMENT ACT (TDA) FUND Actual Original Revised 2013-14 Budget Budget Revenues Subventions and Grants 49,169 54,800 54,800 Total Revenues 49,169 54,800 54,800 Other Sources (Uses) Operating Transfers Out (49,169)(54,800)(54,800) Total Other Sources (Uses)(49,169)(54,800)(54,800) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year Variance % change 2014-15 B-32 Attachment 1 B1-52 CHANGES IN FINANCIAL POSITION COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Actual Original Revised 2013-14 Budget Budget Revenues From Other Governments CDBG Allocation 1,012,873 760,567 645,440 (115,127)-15% Other Revenues 19,301 Total Revenues 1,032,174 760,567 645,440 (115,127)-15% Expenditures Operating Programs Community Development 247,831 573,057 420,165 (152,892)-27% General Government Total Operating Programs 247,831 573,057 420,165 (152,892)-27% Capital Improvement Plan Projects 834,106 262,121 299,802 37,681 14% Debt Service Total Expenditures 1,081,937 835,178 719,967 (115,211)-14% Other Sources (Uses) Operating Transfer In 52,493 74,611 74,611 Total Other Sources (uses)52,493 74,611 74,611 Revenues and Other Sources Over (Under) Expenditures and Other Uses 2,730 84 84 Fund Balance, Beginning of Year (2,814) (84)(84) Fund Balance, End of Year (84)$ 0$ 0$ Variance % change 2014-15 B-33 Attachment 1 B1-53 CHANGES IN FINANCIAL POSITION LAW ENFORCEMENT GRANTS FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues 2,167 100 100 Subventions and Grants 256,149 260,110 260,110 Service Charges 2,616 2,000 2,000 Total Revenues 260,932 262,210 262,210 Expenditures Operating Programs Public Safety 256,511 260,110 260,110 Capital Improvement Plan Projects 607 607 Total Expenditures 256,511 260,110 260,717 607 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 4,422 2,100 1,493 (607)-29% Fund Balance, Beginning of Year 22,724 21,800 27,146 5,346 25% Fund Balance, End of Year 27,146$ 23,900$ 28,639$ 4,739$ 20% 2014-15 Variance % change B-34 Attachment 1 B1-54 CHANGES IN FINANCIAL POSITION PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues 3,147 2,100 2,100 Service Charges In-lieu fees 106,940 20,000 40,701 20,701 104% Other Revenues Total Revenues 110,087 22,100 42,801 20,701 94% Expenditures Operating Programs Leisure, Cultural & Social Services Capital Improvement Plan Projects 122,226 429,903 429,903 Total Expenditures 122,226 429,903 429,903 Other Sources (Uses) Operating Transfer In 80,685 29,900 77,100 47,200 158% Operating Transfer Out Total Other Sources (Uses)80,685 29,900 77,100 47,200 Revenues and Other Sources Over (Under) Expenditures and Other Uses 68,547 52,000 (310,002)(362,002)-696% Fund Balance, Beginning of Year 347,557 25,785 416,104 390,319 Fund Balance, End of Year 416,104$ 77,785$ 106,102$ 28,317$ 36% % changeVariance 2014-15 B-35 Attachment 1 B1-55 CHANGES IN FINANCIAL POSITION GENERAL PURPOSE CIP Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues Subventions and Grants 1,539,622 16,289,400 19,158,992 2,869,592 18% Service Charges Other Revenues Total Revenues 1,539,622 16,289,400 19,158,992 2,869,592 Expenditures Capital Improvement Plan Projects 5,066,505 19,500,600 26,745,101 7,244,501 37% Total Expenditures 5,066,505 19,500,600 26,745,101 7,244,501 37% Other Sources (Uses) Operating Transfers In 6,446,553 2,285,700 2,433,900 148,200 6% Operating Transfers Out (193,427)(141,526)(141,526) Other Sources (Uses) Sale of Surplus Property Total Other Sources (Uses)6,253,126 2,285,700 2,292,374 6,674 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 2,726,243 (925,500)(5,293,735)(4,368,235) Fund Balance, Beginning of Year 2,690,900 1,025,506 5,417,143 4,391,637 Prior Year Restatement Fund Balance, End of Year 5,417,143$ 100,006$ 123,408$ 23,402$ 23% 2014-15 Variance % change B-36 Attachment 1 B1-56 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues 9,500 3,000 3,000 Subventions and Grants Service Charges Park In-Lieu Fees 94,235 116,000 116,000 Dwelling Unit Fees 3,300 10,200 10,200 Other Revenues Total Revenues 107,035 3,000 129,200 126,200 Expenditures Capital Improvement Plan Projects 173,119 826,791 826,791 Total Expenditures 826,791 826,791 Revenues and Other Sources Over (Under) Expenditures and Other Uses (66,084)3,000 (697,591)(700,591) Fund Balance, Beginning of Year 1,232,407 325,390 1,166,323 840,933 Fund Balance, End of Year 1,166,323$ 328,390$ 468,733$ 140,343$ 43% 2014-15 % changeVariance B-37 Attachment 1 B1-57 CHANGES IN FINANCIAL POSITION TRANSPORTATION IMPACT FEE FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 28,352 10,000 10,000 Subventions and Grants 282,207 1,234,000 1,455,379 221,379 18% Impact Fees 1,002,592 177,200 177,200 Other Revenues Total Revenues 1,313,151 1,421,200 1,642,579 221,379 Expenditures Capital Improvement Plan Projects 709,600 8,734,000 11,487,015 2,753,015 32% Total Expenditures 709,600 8,734,000 11,487,015 2,753,015 32% Other Sources (Uses) Bond Proceeds 7,500,000 7,500,000 Operating Transfer In Operating Transfer Out (250,000)(250,000) Total Other Sources (Uses)7,250,000 7,250,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses 603,551 (62,800)(2,594,436)(2,531,636) Fund Balance, Beginning of Year 3,038,149 1,519,710 3,641,700 2,121,990 140% Prior Year Restatement Fund Balance, End of Year 3,641,700$ 1,456,910$ 1,047,263$ (409,647)$ -28% Variance % change 2014-15 B-38 Attachment 1 B1-58 CHANGES IN FINANCIAL POSITION OPEN SPACE PROTECTION FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 4,560 1,500 1,500 Subventions and Grants 50,205 350,000 408,595 58,595 17% Service Charges 20,981 Other Revenues Total Revenues 75,746 351,500 410,095 58,595 17% Expenditures Capital Improvement Plan Projects 58,452 550,000 979,982 429,982 78% Total Expenditures 58,452 550,000 979,982 429,982 78% Other Sources (Uses) Operating Transfer In 200,000 200,000 275,000 75,000 38% Operating Transfer Out Total Other Sources (Uses)200,000 200,000 275,000 75,000 38% Revenues and Other Sources Over (Under) Expenditures and Other Uses 217,294 1,500 (294,887)(296,387) Fund Balance, Beginning of Year 194,299 131,366 411,593 280,227 213% Fund Balance, End of Year 411,593$ 132,866$ 116,706$ (16,160)$ -12% Variance % change 2014-15 B-39 Attachment 1 B1-59 CHANGES IN FINANCIAL POSITION AIRPORT AREA IMPACT FEE FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 6,676 1,000 1,000 Service Charges 255,011 Total Revenues 261,687 1,000 1,000 Expenditures Capital Improvement Plan Projects 9,845 30,156 30,156 Total Expenditures 30,156 30,156 Revenues and Other Sources Over (Under) Expenditures and Other Uses 251,842 1,000 (29,156)(30,156) Fund Balance, Beginning of Year 704,799 1,009,791 956,641 (53,150)-5% Fund Balance, End of Year 956,641$ 1,010,791$ 927,486$ (83,305)$ -8% % changeVariance 2014-15 B-40 Attachment 1 B1-60 CHANGES IN FINANCIAL POSITION AFFORDABLE HOUSING FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 59,726 17,000 17,000 Subventions and Grants 100,955 34,700 34,700 Service Charges 911,262 229,000 229,000 Total Revenues 1,071,943 17,000 280,700 263,700 Expenditures Capital Improvement Plan Projects 30,000 650,000 650,000 Total Expenditures 30,000 650,000 650,000 Transfer Out (17,000)(17,000)(17,000) Revenues and Other Sources Over (Under) Expenditures and Other Uses 1,024,943 (386,300)(386,300) Fund Balance, Beginning of Year 1,921,905 1,882,900 2,946,848 1,063,948 57% Fund Balance, End of Year 2,946,848$ 1,882,900$ 2,560,548$ 677,648 36% Variance % change 2014-15 B-41 Attachment 1 B1-61 CHANGES IN FINANCIAL POSITION FLEET REPLACEMENT FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues 19,074 6,000 6,000 Service Charges Other Revenues Sale of Surplus Property 59,123 10,000 10,000 Total Revenues 78,197 16,000 16,000 Expenditures Capital Improvement Plan Projects 422,106 748,200 2,273,102 1,524,902 204% Total Expenditures 422,106 748,200 2,273,102 1,524,902 204% Other Sources (Uses) Proceeds from Debt Financing 548,351 548,351 Operating Transfers Out (35,000) Operating Transfers In 411,360 532,600 532,600 Total Other Sources (Uses)376,360 532,600 1,080,951 548,351 103% Revenues and Other Sources Over (Under) Expenditures and Other Uses 32,451 (199,600)(1,176,151)(976,551)489% Fund Balance, Beginning of Year 2,590,184 1,599,005 2,622,635 1,023,630 64% Fund Balance, End of Year 2,622,635$ 1,399,405$ 1,446,484$ 47,079$ 3% 2014-15 Variance % change B-42 Attachment 1 B1-62 CHANGES IN FINANCIAL POSITION LOS OSOS VALLEY ROAD SUB-AREA FEE FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 8,939 1,700 1,700 Service Charges 3,097 Total Revenues 12,036 1,700 1,700 Expenditures Capital Improvement Plan Projects 13,076 Total Expenditures 13,076 Revenues and Other Sources Over (Under) Expenditures and Other Uses (1,040)1,700 1,700 Fund Balance, Beginning of Year 146,250 141,021 145,210 4,189 3% Fund Balance, End of Year 145,210$ 142,721$ 146,910$ 4,189$ 3% 2014-15 % changeVariance B-43 Attachment 1 B1-63 CHANGES IN FINANCIAL POSITION MAJOR FACILITY REPLACEMENT Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 500 500 Service Charges 5,091 Total Revenues 5,091 500 500 Expenditures Capital Improvement Plan Projects 283,997 747,800 1,234,477 486,677 65% Total Expenditures 283,997 747,800 1,234,477 486,677 65% Other Sources (Uses) Operating Transfer In 932,627 551,400 645,726 94,326 17% Operating Transfer Out (59,878) 872,749 551,400 645,726 94,326 15% Revenues and Other Sources Over (Under) Expenditures and Other Uses 593,843 (195,900)(588,251)(392,351)200% Fund Balance, Beginning of Year 196,400 593,843 397,443 202% Fund Balance, End of Year 593,843$ 500$ 5,592$ 5,092$ 2014-15 Variance % change B-44 Attachment 1 B1-64 CHANGES IN FINANCIAL POSITION INFORMATION TECHNOLOGY REPLACEMENT Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 4,252 1,500 1,500 Service Charges Total Revenues 4,252 1,500 1,500 Expenditures Capital Improvement Plan Projects 116,066 1,011,000 2,337,481 1,326,481 Total Expenditures 116,066 1,011,000 2,337,481 1,326,481 Other Sources (Uses) Operating Transfer In 593,447 967,100 967,100 Debt Proceeds 688,500 688,500 Total Sources (Uses)593,447 967,100 1,655,600 688,500 71% Revenues and Other Sources Over (Under) Expenditures and Other Uses 481,632 (42,400)(680,381)(637,981) Fund Balance, Beginning of Year $199,650 43,600$ $681,282 637,682$ Fund Balance, End of Year $681,282 1,200$ 901$ (299)$ 2014-15 Variance % change B-45 Attachment 1 B1-65 CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND Actual Original Revised 2013-14 Budget Budget Expenditures Debt Service 2012/2001 Refunded Revenue Bonds 385,800 390,400 390,400 2004/1994 Refunding Revenue Bonds 294,872 10,700 10,700 2005/1996 Refunding Revenue Bonds 507,139 468,100 468,100 2006 Lease Revenue Bonds 460,374 458,200 458,200 2009 Lease Revenue Bonds 838,859 834,900 834,900 Fire Engine/Truck Lease Purchase 128,920 130,800 130,800 Capital Lease / Fire Truck 2014 116,703 116,703 Capital Lease (I.T. Equipment)184,500 88,500 (96,000)-52% 2014 Lease Revenue Bond/ LOVR 250,000 140,165 (109,835)-44% Insurance Retrospective Charges 2,443,259 2,443,259 PERS Side Fund Payment 935,000 300,000 300,000 Total Expenditures 3,550,964 5,576,862 5,381,727 (195,135)-3% . Other Sources (Uses) Operating Transfers In 3,550,964 5,576,862 5,381,727 (195,135)-3% Operating Transfers Out (850,775) Proceeds from Debt Financing 850,775 Total Other Sources (Uses)3,550,964 5,576,862 5,381,727 (195,135)-3% Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year 2,043,222 2,043,200 2,043,200 Fund Balance, End of Year Reserved for Debt Service 2,043,222 2,043,200 2,043,200 Total Fund Balance 2,043,222$ 2,043,200$ 2,043,200$ -$ 2014-15 Variance % change B-46 Attachment 1 B1-66 CHANGES IN FINANCIAL POSITION WATER FUND Actual Original Revised 2013-14 Budget Budget Revenues Service Charges Water Sales Water Service Charges 17,601,184 17,019,200 16,150,000 (869,200)-5% Sales to Other Agencies 906,566 842,908 760,000 (82,908)-10% Development Impact Fees 819,477 678,600 1,600,000 921,400 136% Connection Charges and Meter Sales 42,716 27,500 45,000 17,500 64% Account Set-up Fee 95,506 103,400 103,400 AB 939 Reimbursement 147,252 131,000 131,000 Total Service Charges 19,612,701 18,802,608 18,789,400 (13,208)0% Other Revenues 80,403 32,100 31,000 (1,100)-3% Subventions and Grants Investment and Property Revenues 136,205 50,000 50,000 Total Revenues 19,829,309 18,884,708 18,870,400 (14,308)0% Expenditures Operating Programs Public Utilities 12,272,232 13,003,700 13,498,195 494,495 4% General Government 1,268,800 1,167,004 1,167,004 Total Operating Programs 13,541,032 14,170,704 14,665,199 494,495 3% Capital Improvement Plan Projects 1,029,624 2,546,130 6,090,528 3,544,398 139% Debt Service 2,191,161 2,195,300 2,195,300 Total Expenditures 16,761,817 18,912,134 22,951,027 4,038,893 21% Other Sources (Uses) Other Sources (Uses) Proceeds from Debt Financing Projected MOA Adjustments Operating Transfer In 62,804 Operating Transfers Out (20,800)(20,800) Expenditure Savings Other Sources (Uses)24,399 (78,700)(78,700) Total Other Sources (Uses)87,203 (99,500)(99,500) Revenues and Other Sources Over (Under) Expenditures and Other Uses 3,154,695 (126,926)(4,180,127)(4,053,201)3193% Working Capital, Beginning of Year 14,845,300 11,564,073 17,999,995 6,435,922 56% Working Capital, End of Year 17,999,995$ 11,437,147$ 13,819,868$ 2,382,721$ 21% Variance % change 2014-15 B-47 Attachment 1 B1-67 CHANGES IN FINANCIAL POSITION SEWER FUND Actual Original Revised 2013-14 Budget Budget Revenues Service Charges Customer Sales Sewer Service Charges 15,654,332 14,767,300 14,590,000 (177,300)-1.2% Sales to Cal Poly 930,041 929,300 875,000 (54,300)-5.8% Development Impact Fees 268,132 158,300 560,000 401,700 253.8% Account Set-Up Fees 95,506 107,100 103,400 (3,700)-3.5% Industrial User Charges 76,693 67,900 67,900 Connection Charges and Meter Sales 42,716 22,700 45,000 22,300 98.2% Total Service Charges 17,067,419 16,052,600 16,241,300 188,700 1.2% Other Revenues 37,424 6,800 16,400 9,600 141.2% Investment and Property Revenues 98,087 97,600 97,600 Total Revenues 17,202,930 16,157,000 16,355,300 198,300 1.2% Expenditures Operating Programs Public Utilities 6,043,739 6,641,900 7,256,110 614,210 9% General Government 1,609,600 1,291,008 1,291,008 Total Operating Programs 7,653,339 7,932,908 8,547,118 614,210 8% Capital Improvement Plan Projects 6,137,018 4,707,900 20,595,862 15,887,962 337% Debt Service 965,239 1,405,300 1,405,300 Total Expenditures 14,755,596 14,046,108 30,548,280 16,502,172 117% Other Sources (Uses) Cashflow adjustment for working capital Proceeds from Debt Financing 7,249,000 Projected MOA Adjustments Operating Transfer In 120,142 Operating Transfers Out (22,200)(22,200) Other Sources (Uses)(53,178) Total Other Sources (Uses)7,315,964 (22,200)(22,200) Revenues and Other Sources Over (Under) Expenditures and Other Uses 9,763,298 2,088,692 (14,215,180)(16,303,872)-781% Working Capital, Beginning of Year 16,937,500 8,075,603 26,700,798 18,625,195 231% Working Capital, End of Year 26,700,798$ 10,164,295$ 12,485,618$ 2,321,323$ 23% 2014-15 Variance % change B-48 Attachment 1 B1-68 CHANGES IN FINANCIAL POSITION PARKING FUND Actual Original Revised 2013-14 Budget Budget Revenues Service Charges Parking Meter Collections Lots 534,002 530,300 530,300 Streets 1,381,090 1,325,000 1,325,000 Parking Structure Collections 845,574 863,800 863,800 Long-Term Parking Revenues 423,363 391,500 391,500 Lease Revenues 225,488 218,300 218,300 Parking In-Lieu Fees 9,320 18,500 18,500 Other Service Charges (5,889)100 100 Total Service Charges 3,412,947 3,347,500 3,347,500 Investment and Property Revenues 124,130 21,000 21,000 Fines and Forfeitures 585,783 708,300 708,300 Other Revenues Total Revenues 4,122,860 4,076,800 4,076,800 Expenditures Operating Programs Transportation 1,869,872 2,044,700 2,156,639 111,939 5% General Government 609,320 604,225 604,225 Total Operating Programs 2,479,192 2,648,925 2,760,864 111,939 4% Capital Improvement Plan Projects 347,510 17,200 1,867,636 1,850,436 Debt Service 571,224 969,100 969,100 Total Expenditures 3,397,926 3,635,225 5,597,600 1,962,375 54% Other Sources (Uses) Cashflow adjustment for working capital Expenditure Savings 42,775 42,775 Operating Transfer In 69,738 Operating Transfer Out (5,400)(5,400) Proceeds from Debt Financing Other Sources (Uses) Potential MOA Adjustments Total Other Sources (Uses)37,375 107,113 Revenues and Other Sources Over (Under) Expenditures and Other Uses 724,933 478,950 (1,413,687)(1,962,375)-410% Working Capital, Beginning of Year 6,587,000 4,196,880 7,311,933 3,115,053 74% Working Capital, End of Year 7,311,933$ 4,675,830$ 5,898,246$ 1,152,678$ 25% 2014-15 % changeVariance B-49 Attachment 1 B1-69 CHANGES IN FINANCIAL POSITION TRANSIT FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues 6,129 5,800 5,800 From Other Governments TDA Revenues (LTF)1,012,989 1,941,563 1,941,563 TDA Revenues (STA)182,298 176,137 176,137 Other Grants 48,948 30,300 30,300 FTA Grants 1,300,213 1,570,000 1,570,000 Service Charges 664,069 669,500 669,500 Other Revenues 21,066 4,000 4,000 Total Revenues 3,235,713 4,397,300 4,397,300 Expenditures Operating Programs Transportation 2,827,081 2,939,600 3,009,343 69,743 2% General Government 320,400 290,742 290,742 Total Operating Programs 3,147,481 3,230,342 3,300,085 69,743 2% Capital Improvement Plan Projects 88,231 497,200 498,476 1,276 0% Total Expenditures 3,235,712 3,727,542 3,798,561 71,019 2% Other Sources (Uses) Cashflow adjustment for working capital Potential MOA Adjustments Operating Transfer Out (1,400)(1,400) Other Sources Expenditure Savings 9,300 9,300 Total Other Sources (Uses)7,900 7,900 Revenues and Other Sources Over (Under) Expenditures and Other Uses 1 677,658 606,639 (71,019)-10% Working Capital, Beginning of Year 986,147 946,571 986,148 39,577 4% Working Capital, End of Year 986,148$ 1,624,229$ 1,592,787$ (31,442)$ -2% 2014-15 Variance % change B-50 Attachment 1 B1-70 CHANGES IN FINANCIAL POSITION WHALE ROCK COMMISSION Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenues 7,167 1,000 1,000 Service Charges Member Agency Contributions 587,300 600,300 600,300 Water Distribution Charges 387,263 426,400 426,400 Other Service Charges 1,520 Total Service Charges & Interest 983,250 1,027,700 1,027,700 Other Revenues 2,723 1,400 1,400 Total Revenues 985,973 1,029,100 1,029,100 Expenditures Operating Programs Public Utilities 865,129 953,900 956,553 2,653 0% General Government 89,300 98,229 98,229 Total Operating Programs 954,429 1,052,129 1,054,782 2,653 0% Capital Improvement Plan Projects 14,278 75,000 610,083 535,083 Total Expenditures 968,707 1,127,129 1,664,865 537,736 48% Other Sources (Uses) Transfer out (12,900)(12,900) Other Sources (Uses) Adjust for working capital Total Other Sources (Uses)(12,900)(12,900) Revenues and Other Sources Over (Under) Expenditures and Other Uses 17,266 (110,929)(648,665)(537,736) Working Capital, Beginning of Year 1,156,700 496,594 1,173,966 677,372 136% Working Capital, End of Year 1,173,966$ 385,665$ 525,301$ 139,636$ 36% 2014-15 Variance % change B-51 Attachment 1 B1-71 CHANGES IN FINANCIAL POSITION BOYSEN RANCH CONSERVATION FUND Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue 2,205 1,800 1,800 Service Charges Total Revenues 2,205 1,800 1,800 Expenditures Operating Programs 7,500 7,500 Total Expenditures 7,500 7,500 Other Sources (Uses) Operating Transfer In Debt Proceeds Total Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses 2,205 (5,700)(5,700) Fund Balance, Beginning of Year $86,600 86,600$ 88,805$ 2,205$ Fund Balance, End of Year 88,805$ 80,900$ 83,105$ 2,205$ 2014-15 Variance % change B-52 Attachment 1 B1-72 CHANGES IN FINANCIAL POSITION INSURANCE BENEFIT Actual Original Revised 2013-14 Budget Budget Revenues Investment and Property Revenue Service Charges Total Revenues Expenditures Operating Programs General Government Capital Improvement Plan Projects Total Expenditures Other Sources (Uses) Operating Transfer In 342,700 342,700 Operating Transfer Out Total Other Sources (Uses)342,700 342,700 Revenues and Other Sources Over (Under) Expenditures and Other Uses 342,700 342,700 Fund Balance, Beginning of Year Fund Balance, End of Year 342,700$ 342,700$ Variance % change 2014-15 B-53 Attachment 1 B1-73 Section C MID-YEAR SUPPLEMENTAL BUDGET REQUESTS Attachment 1 B1-74 SUMMARY OF 2013-14 MID-YEAR BUDGET REQUESTS Significant Operating Program Changes FY 14-15 FY 15-16 Note Revenue Enhancement Oversight Commission 7,250 14,500 On-going Fire Apparatus Operating Budget 26,000 One-time Capital Improvement Santa Rosa Park Ballfield Barrier Netting 40,000 One-time Pedestrian & Bike Path Maintenance 29,200 One-time General Fund Total 102,450 14,500 Parking Fund FY 14-15 FY 15-16 Note Palm Street Chinatown Artifacts*55,000 One-time, Funded Total 157,450 14,500 Notes * Palm Street Artifacts project has available funding in the Parking Completed Projects account. C-1 Attachment 1 B1-75 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (General Government) CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION (REOC) Summary of Change: Funding for the REOC, a new advisory body created to provide oversight of local sales tax expenditures. Fiscal Impact: On-going cost of $7,250 in 2014-15 and $14,500 in 2015-16. Beginning in 2016-17 the on-going cost will be $9,500. Service Level Impact: The new commission was created with the voters’ approval of Measure G, an extension of the City’s Essential Services Measure (SLOMC 3.15) to review and report on local sales tax expenditures, and make recommendations to the City Council regarding budgeting to accomplish local sales tax priorities. KEY OBJECTIVES The Revenue Enhancement Oversight Commission (REOC) was established to review, report, and make recommendations regarding the use of revenues collected through the City’s voter-approved general purpose, half-percent sales tax authorized by Section 3.15 of the Municipal Code. The REOC is authorized to review these tax revenues and expenditures, report on the City’s stewardship of this general purpose tax, and provide recommendations directly to the City Council regarding expenditures of these tax revenues as an integral part of the budget process. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Funding for the REOC is necessary for the new Commission to conduct meetings and carry out its responsibilities. The associated costs include member compensation at $60 per meeting, materials and supplies, training through the League of California Cities, and other incidental expenses. GOAL AND POLICY LINKS The Fiscal Health Major City Goal for 2013-15 included direction to seek approval of an extension of the local half- percent sales tax, which contributes over $6.5 million annually to the City’s general fund. As part of the process to receive Council approval for placing the tax extension on the ballot, it was determined that an oversight commission would be a valuable component of the updated program. In November 2014, the voters of the City of San Luis Obispo passed the local sales tax extension, thereby creating the REOC, with over 70% of the vote. The creation of the REOC is also consistent with the City’s Financial Sustainability Philosophy, which includes increased transparency, and diversified and aligned revenue sources as two of its components. PROGRAM WORK COMPLETED The first meeting of the REOC occurred on January 26, 2015. The Commission is staffed by the City’s Principal Analyst and Budget Manager. The REOC approved its by-laws, elected officers, and received a presentation on the 2013-14 local sales tax expenditures. They will meet again in March to consider proposed expenditures for 2015-17, and make a recommendation to the City Council. OPERATING PROGRAM The REOC is a function of the City Administration program within the Administration Department. C-2 Attachment 1 B1-76 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (General Government) CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION (REOC) COST SUMMARY Line Item Description Account No.2014-15 2015-16 Staffing 1,000 2,000 Commissioner Compensation 1,000 2,000 Contract Services 0 0 Other Operating Expenditures 3,750 12,500 Display Advertisements 2,000 4,000 Printing 500 1,000 Facility Rental 250 500 Commissioner Training*0 5,000 Supplies/Refreshments 250 500 PSAs and Outreach 750 1,500 Minor Capital 0 0 Total Operating Costs 4,750 14,500 Offsetting Costs Savings or Revenues (Enter as a negative number. If there are none, delete this row in the table.) Net Operating Costs 4,750 14,500 *Commissioner training costs are for 2015-16 only and will be reduced in 2016-17, bringing the total cost to $9,500 in 2016-17. C-3 Attachment 1 B1-77 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (Public Safety) FIRE APPARATUS OPERATING BUDGET Summary of Change: Fiscal Impact: One-time cost of $26,000 in 2014-15. Service Level Impact: The increase in the Fire Apparatus operating budget will enable the Fire Department to maintain employee safety by driving well maintained fire apparatus and vehicles. KEY OBJECTIVES 1.Maintain employee safety by driving well maintained fire apparatus and vehicles. 2.Ensure reliability of equipment to support public service functions. 3.Ensure availability of vehicles for out of county mutual aid request and training. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The Fire Department’s contract and operating supplies accounts related to maintenance of emergency response apparatus are insufficiently funded due to rising costs. This funding gap was identified during the FY 2013-14 midyear process, and funding was allocated to address this need during the midyear report. Prior to submitting the FY 2013-14 midyear budget request, the Fire Department performed an extensive analysis of its budget to search for funds that could be reprioritized and reallocated to support apparatus maintenance needs. The result of this analysis was the conclusion that the Fire Department does not have the capacity to reallocate funding for this need. To allow for the continued maintenance of emergency response apparatus, the City Council authorized an addition $26,000 to the Fire Department’s FY 2013-14 budget at midyear. While it was acknowledged during the FY 2013-14 midyear process that this funding gap is an ongoing issue for the Fire Department, funding was not extended beyond FY 2013-14 to allow the Fire Department and Public Works Department the opportunity to collaborate in assessing the capacity for Public Works to transfer funds to the Fire Department to cover the ongoing funding gap. Upon completion of the FY 2013-14 budget, Public Works conducted an extensive analysis of that department’s capacity to support Fire’s budget need. The result of this analysis was the conclusion that Public Works does not have the capacity to transfer funding to Fire for this need. While efforts have been made to identify savings in other accounts to transfer the funds to the line items that are overspent, none was available and additional funding is needed to maintain operations at the existing level. At 50% of the current fiscal year, operating expenditures for mechanic-related contracts services and tires, batteries and accessories are close to and over 100% spent in some accounts. Prior to FY 2013-14, the Fire Vehicle Mechanic deferred maintenance and repair during the final months of the budget cycle due to inadequate funding. As costs have increased at rates greater than the mechanic-related operating expenditures budget has increased, this system of deferring maintenance from one budget cycle to the next has become unsustainable. The calculated request for additional funding of $26,000 would provide the Fire Vehicle Mechanic with sufficient funding to provide maintenance and repair at a consistent level of service throughout the entire year. As with all other budget accounts, any funding not utilized for its authorized purchase would be realized in year-end savings. The identified on-going funding gap for the 2015-17 Financial Plan has been captured in a significant operating program change (SOPC) related to maintenance of the City’s total fleet, with the Fire Department and Public Works Department collaborating to address this systemic issue. The continued healthy collaboration between these two departments ensures a level of confidence and consistency in the assessment and maintenance of City vehicles. C-4 Attachment 1 B1-78 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (Public Safety) FIRE APPARATUS OPERATING BUDGET GOAL AND POLICY LINKS How does this operating program change tie to previously adopted goals or policies? This could include: 1. Major City Goals or Other Council Objectives: Essential Services, Infrastructure & Fiscal Health. Preserve public health and safety and provide essential services in line with residents’ priorities. This budget increase request is consistent with circumstances described during the 2013-2014 midyear budget request to support maintenance of critical emergency response apparatus. 2. General Plan, Safety Element: The Fire Department has a response time goal in the Safety Element of four minutes or less (travel time) to 95% of all emergencies. Maintaining emergency response apparatus is directly linked to this goal. 3. Operating Program Goals: Fire Department apparatus, vehicle and equipment are well maintained. Emergency Response time of four minutes or less (travel time) to 95% of all emergencies. A safe work environment for all employees. PROGRAM WORK COMPLETED Staff has reviewed existing expenditures and needed funding by accounts with anticipated for expenses for the remainder of the year. Staff has reviewed other program budgets for potential savings and transfer but none was available. Funding was transferred to other accounts that were overspent. ENVIRONMENTAL REVIEW No environmental review required. PROGRAM CONSTRAINTS AND LIMITATIONS None STAKEHOLDERS Fire Department personnel, Community due to the Fire Department response time, and Out of County Mutual Aid requests are all expecting safe and well maintained apparatus and vehicles. IMPLEMENTATION Task Date 1. Additional funding would be added to the identified account once approval is received Feb. 2015 2. Ongoing monitoring of the budget Feb – June 2015 KEY PROGRAM ASSUMPTIONS Expenditures will remain at FY 2013-14 level. There will not be significant overhaul or major repairs needed on any of the apparatus, vehicles or equipment. C-5 Attachment 1 B1-79 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (Public Safety) FIRE APPARATUS OPERATING BUDGET PROGRAM MANAGER AND TEAM SUPPORT Jeff Gater, Deputy Chief Jeremy Schmidt, Fire Vehicle Mechanic Josh Pinson, Mechanic Helper Project Team: Public Works - Fleet Alternatives: Continue the status quo but this is not recommended as the budget will be overspent or vehicle maintenance will be deferred which will likely result in safety concerns, premature failure of high-dollar assets, and/or delays in providing emergency fire, medical and rescue services. OPERATING PROGRAM 85210 Emergency Response COST SUMMARY The current expenses are on track with FY 2013-14 level. Line Item Description Account No.2014-15 Staffing 0 Contract Services 21,000 Maintenance and Minor Repair 85210-7563 21,000 Other Operating Expenditures 5,000 Tires, Batteries & Accessories 85210-7907 5,000 Minor Capital 0 Total Operating Costs 26,000 Net Operating Costs 26,000 C-6 Attachment 1 B1-80 CAPITAL IMPROVEMENT PROGRAM REQUEST: 2014-15 MID-YEAR BUDGET (Leisure, Cultural & Social Services) SANTA ROSA PARK BALL FIELD BARRIER NETTING Summary of Change: Installation of new poles and barrier netting along the softball field adjacent to the new skate park at Santa Rosa Park will cost $40,000 in 2014-15. Fiscal Impact: One-time cost of $ 40,000 in 2014-15. Service Level Impact: The recent construction and expansion of the new skate park has brought park users even closer (literally) together with various uses of Santa Rosa Park. The new skate park “snake run” and “bowl,” located near the rear of the skating area, are now immediately adjacent to the softball outfield. Protective barrier netting is proposed along the softball outfield as a safety measure to the public and to prevent errant balls from coming into contact with other park users. Barrier netting would consist of black UV treated netting with sewn-in vertical, horizontal and perimeter rib lines, extra high strength galvanized cable, 5/8” galvanized bolts and heavy duty galvanized attachment hardware. With the park being utilized seven days a week, installation would occur during breaks in adult softball play to allow for continued use of the park by other users while the contractor performs the scope of work. KEY OBJECTIVES 1. Provide safety for all users of Santa Rosa Park. 2. Increase use of the park while providing safety measures for the new skate park and the softball field. 3. Installation of five treated wood poles 40’ high along 200 linear feet of the outfield between the skate park and field. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Completion of the new skate park is scheduled for late February 2015, and the expansion brings users of the park even closer together posing safety issues between the skate park and the softball field. The need for this safety measure has recently become apparent to staff as construction has neared completion and was not readily seen in reviewing of the plans. The installation of protective barrier netting will ensure safety for all users of Santa Rosa Park. GOAL AND POLICY LINKS 1. Completion of Skate Park meets Major City Goal. 2. Additional recreation opportunities at Santa Rosa Park, requiring patron safety. 3. Operating Program Goals – provide and maintain a safe facility for all users. PROGRAM WORK COMPLETED Barrier netting costs have been projected at $40,000 upon consultation, with a 20 year life span. ENVIRONMENTAL REVIEW No review required. Parks & Rec staff collaborated with CDD on design and height and determined there is no Environmental Review required. The height of the netting is under the existing light standards currently at the park and the netting is a “see-through” material; therefore no view issues for the park or surrounding neighbors. C-7 Attachment 1 B1-81 CAPITAL IMPROVEMENT PROGRAM REQUEST: 2014-15 MID-YEAR BUDGET (Leisure, Cultural & Social Services) SANTA ROSA PARK BALL FIELD BARRIER NETTING STAKEHOLDERS All users of Santa Rosa Park are stakeholders in this project, including the new skate park and the softball field. With the park being utilized seven days a week, installation would occur during breaks in adult softball play to allow for continued use of the park by other users while the Contractor performs the scope of work. Installation will occur during softball break, which is determined to be daytime construction hours 7:30 a.m. – 5:00 p.m. The Adult Softball League games are during the night, so the installation will happen when the league is not playing games. The installation of the netting is on the outskirts of the field and will not interfere with the configuration of the ball field. The adjacent neighbors will be notified via door hangers indicating time and length of construction, i.e. Monday through Friday during the hours of 8:00 a.m. to 4:00 p.m. The Skate Park will be opening to the public on February 28, and it was determined due to the safety of the all patrons using Santa Rosa Park installation of the ball field netting deemed immediate response. IMPLEMENTATION At the completion of the Skate Park, the ballfield barrier netting will be scheduled. The installation will not impact use of the park. KEY PROGRAM ASSUMPTIONS Cost projections are based upon an estimate from the contractor and Public Works Engineering staff. The contractor installed the barrier netting at Laguna Lake Golf Course and El Chorro Park. PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Facilities Supervisor will be the program manager for this program, working collaboratively with the Recreational Sports Supervisor and Public Works Engineering staff. Project Team: The project team will consist of staff from Parks & Recreation & Public Works – Engineering. There will be some review by the Building Division as this project comes closer to construction. Alternatives: 1. Continue the Status Quo. The alternative would be to continue as status quo and not provide for barrier netting between the softball fields and skate park. This alternative is not recommended as the safety of the public is a significant concern due to the possibility of errant balls coming into contact with park users. Until the protective barrier netting can be installed, staff will implement the use of lower-flight softballs and installation of signage in this area warning park users of potential risks. 2. Defer or Re-Phase the Request. Project phasing is not recommended as the skate park is scheduled to open to the public in 2015 and will immediately add to safety concerns of the public and park users who are occupying the park at the same time as softball field play. As such, installation of barrier netting is recommended as soon as possible. Should installation of netting be delayed, staff will implement the use of lower-flight softballs and installation of signage to help limit the chances of the public coming into contact with errant balls. C-8 Attachment 1 B1-82 CAPITAL IMPROVEMENT PROGRAM REQUEST: 2014-15 MID-YEAR BUDGET (Leisure, Cultural & Social Services) SANTA ROSA PARK BALL FIELD BARRIER NETTING OPERATING PROGRAM 60230 - Facilities COST SUMMARY This is a one-time cost of $40,000. No ongoing maintenance costs are anticipated with the installation of the softball netting. There is no construction contingency funding anticipated from the Skate Park. Location Map Santa Rosa Park Softball Field Cost by Phase 2014-15 Construction $40,000 Total $40,000 Project Funding Source 2014-15 General Fund $40,000 Total $40,000 C-9 Attachment 1 B1-83 CAPITAL IMPROVEMENT PROGRAM REQUEST: 2014-15 MID-YEAR BUDGET (Leisure, Cultural & Social Services) PEDESTRIAN & BIKE PATH MAINTENANCE Summary of Change: Reconstructing pathways adjacent to the tennis courts at Sinsheimer Park will cost $29,200. Fiscal Impact: One-time cost of $29,200 in 2014-15. Service Level Impact: The Pedestrian and Bike Path Maintenance 2015 project was advertised for construction bids in January 2015. The project was bid with two “additive alternates” – the reconstruction of two sections of pathways adjacent to the tennis courts at Sinsheimer Park. By increasing the CIP budget by $29,200, the additive alternates can be included in the award of the project’s construction contract. KEY OBJECTIVES 1. Provide for the construction of the entire Pedestrian and Bike Path Maintenance 2015 project. 2. Benefit the user of Sinsheimer Park with new asphalt walkways adjacent to the tennis courts. 3. Decrease City’s liability by providing smoother and safer walking surfaces. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE 1. The existing pathways are in extremely poor condition. 2. The intent of the Pedestrian and Bike Path Maintenance 2015 project is to restore the pedestrian pathways at Laguna Lake Park and at Sinsheimer Park. 3. These two locations of pathways experience a lot of use by the public. GOAL AND POLICY LINKS How does this operating program change tie to previously adopted goals or policies? This could include: 1. Major City Goal: Bike and Pedestrian Paths 2. Measure Y Priority: Expand Bicycle & Pedestrian Paths and Maintenance of City Infrastructure. PROGRAM WORK COMPLETED In 2014, pathway repair was completed on the Bob Jones Trail. The 2015 project has been advertised and bids have been received. Pending this request, the additional pathway work can be included in the 2015 project. ENVIRONMENTAL REVIEW Environmental Review has been completed; the Community Development Department has determined that the project is Categorically Exempt from environmental review pursuant to CEQA Guidelines Section 15301 (maintenance or replacement of an existing facility). PROGRAM CONSTRAINTS AND LIMITATIONS There are no constraints associated with this request. The pathway repair work can be included in the contract award through a routine administrative process. C-10 Attachment 1 B1-84 CAPITAL IMPROVEMENT PROGRAM REQUEST: 2014-15 MID-YEAR BUDGET (Leisure, Cultural & Social Services) PEDESTRIAN & BIKE PATH MAINTENANCE STAKEHOLDERS Users of Sinsheimer Park are the primary stakeholders of this project. Users include tennis court users, those who walk or jog the perimeter of the park, and students of Sinsheimer School who walk through the park going to and from school. IMPLEMENTATION The project is scheduled to be awarded in February or March 2015, with completion anticipated by April 2015. KEY PROGRAM ASSUMPTIONS The project has already been bid; the costs for this additional work are known and included in the construction bid by Souza Construction. PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Public Works Engineering Division Supervising Civil Engineer will be the program manager through the award of the construction contract. The Construction Manager will be the program manager for this project through construction. Project Team: The project team consists of the Public Works Engineering Division’s project manager and the Construction Division’s inspector. Additional support may be provided by staff from the Parks and Recreation Department. Alternatives: What are the reasonable alternatives to your request? These could include: 1. Continue the Status Quo. The alternative to not fund this request would result a funding shortfall for the Pedestrian and Bike Path Maintenance 2015 project. The project would be awarded without the inclusion of the two sections of trails adjacent to the Sinsheimer tennis courts, and it is unknown when the maintenance needs of these two sections would be addressed. 2. Defer or Re-Phase the Request. The Pedestrian and Bike Path Maintenance project is funded with an annual amount of $60,000. Deferring this request would allow for the paving of these pathways at a future date, however, the costs would likely be higher as a stand-alone project due to the loss of the economy of scale associated with including the work with other pavement repair work at Sinsheimer Park. OPERATING PROGRAM 50200 Landscape and Park Maintenance COST SUMMARY This is a one-time cost of $29,900. On-going maintenance costs may be slightly reduced due to the improved pavement surface and the reduction in needs of immediate, stop-gap pavement repair. C-11 Attachment 1 B1-85 CAPITAL IMPROVEMENT PROGRAM REQUEST: 2014-15 MID-YEAR BUDGET (Leisure, Cultural & Social Services) PEDESTRIAN & BIKE PATH MAINTENANCE Line Item Description Account No.2014-15 Capital 29,200 Pedestrian & Bike Path Maintenance 2015 400-91248-953 29,200 Total Cost 29,200 C-12 Attachment 1 B1-86 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (Parking Fund) PALM STREET CHINATOWN ARTIFACTS Summary of Change: Complete stabilization and preparation for storage of Palm Street Chinatown artifacts, and create products associated with the collection that demonstrate its historic significance in the community. Fiscal Impact: One-time cost of $55,000 in 2014-15, to be encumbered. Service Level Impact: (1) Complete required mitigation measures associated with artifacts uncovered during construction of the 842 Palm Street Parking Structure. (2) Create products from the collection that offer community value such as interpretive signage, displays, academic papers, and dedicated web pages. KEY OBJECTIVES 1. Complete required mitigation measures associated with artifacts uncovered during construction of the 842 Palm Street Parking Structure. a. Stabilization of the collection (cleaning, rebagging, reorganizing boxes). b. Preparation for storage at the San Luis Obispo County Archaeological Society (SLOCAS). c. Basic excavation report. 2. Create products associated with the collection that demonstrate its historic significance in the community. a. Interpretive outdoor kiosk in the Chinatown District. b. Interpretive display in City Hall or other exhibit case. c. Academic papers and in-depth analysis of the collection to be available at SLOCAS, City Library, and History Center. d. Dedicated project webpages hosted on slocity.org. NOTE: These products are initial ideas offered by the project consultant. The Cultural Heritage Committee will have an opportunity to refine this list. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE In 1987 an archaeological excavation took place in downtown San Luis Obispo. The excavation was part of the construction of a new downtown parking garage, located in the heart of the old 1870's Chinatown. The excavation uncovered features and artifacts from the Mission (1820s) and Chinese (1870s) periods. Approximately 5 tons of artifacts were recovered. The approved Palm Street Garage Environmental Review and the City’s Archaeological Resource Preservation Guidelines require all archaeological materials removed from a project site be curated at a qualified institution. The City has agreed to store the artifacts at the nearby San Luis Obispo County Archaeological Society. The City has contracted with two separate consultants – Archaeological Resource Service and Parker & Associates – in the past to complete this work. They were both unsuccessful in delivering and respective contracts have been terminated. A third consultant – Sonoma State’s Anthropological Studies Center – has completed the majority of stabilization efforts and provided the cost estimate that will bring the project to a close, and deliver quality products that contribute to the community’s historic character. C-13 Attachment 1 B1-87 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (Parking Fund) PALM STREET CHINATOWN ARTIFACTS GOAL AND POLICY LINKS 1. The Major City Goal Assess and Renew the Downtown includes “support the continued development of cultural attractions.” 2. The Conservation and Open Space Element of the General Plan contains numerous polices to preserve, document, protect, and curate significant historic resources (COSE 3.2, 3.3.1, 3.3.3, 3.5.1, 3.5.5, 3.5.9). 3. The Archaeological Resource Preservation Guidelines require all archaeological materials removed from a project site be curated at a qualified institution. 4. Historic preservation is an ongoing goal in the operating program Community Development – Long Range Planning. Providing financial support in cultural areas is an ongoing goal on the operating program Leisure, Cultural and Social Services – Cultural Activities. PROGRAM WORK COMPLETED 1. Late 1980s and early 1990s – Archaeological excavation (Archaeological Resource Service) 2. Late 1990s and early 2000s – Cleaning and cataloguing (Parker & Associates) 3. 2014 – Collection stabilization and cost estimates for completion (Sonoma State Anthropological Studies Center) ENVIRONMENTAL REVIEW No future environmental issues are anticipated. The SOPC will enable the City to satisfy mitigation measures identified in the Palm Street Garage Environmental Review (ER 31-86). In summary, the project’s environmental review required an archaeologist on-site during construction, test and full excavation, and all archaeological materials removed from the project site be curated at a qualified institution. PROGRAM CONSTRAINTS AND LIMITATIONS Sole sourcing this work to Sonoma State’s Anthropological Studies Center (ASC) is justified because they are the only vendor with a high level of expertise and low-cost labor pool in the region. Specifically, the archaeology of the Chinese in the West is one of ASC’s recognized specialties and has been for nearly 40 years. ASC has a large facility and the experienced staff to manage the requested effort and working the project into student internships is a huge cost savings. Furthermore, Cal Poly does not have the appropriate expertise or a graduate program. Contracting with ASC makes good fiscal sense given the challenges the City has faced over the last 25 years completing the project. STAKEHOLDERS Residents and visitors to San Luis Obispo will benefit from enriched understanding of the recovered artifacts and their historical association to the site and relationship to the Chinatown Historic District. IMPLEMENTATION Work is nearly completed on collection stabilization, and work on other key objectives will begin as soon as the funding is secured. Timeframes vary based on product, but it is reasonable to expect finished products over the next two years. KEY PROGRAM ASSUMPTIONS Funds will be encumbered from the Parking Fund Completed Projects account. Costs for stabilizing the collection, preparation for curation, and product alternatives were submitted by the ASC Director in October 2014. Ancillary costs associated with transport of artifacts and installation of products are estimated by staff. C-14 Attachment 1 B1-88 SIGNIFICANT OPERATING PROGRAM CHANGE : 2014-15 MID-YEAR BUDGET (Parking Fund) PALM STREET CHINATOWN ARTIFACTS Ongoing costs of storage at the SLOCAS are not included in this one-time SOPC. Those costs will be better understood once the stabilization efforts are complete and the number of artifacts boxes to be stored is finalized. Funding for these costs will require an ongoing SOPC that will be submitted as part of the 2015-17 Financial Plan or Supplemental Budget . PROGRAM MANAGER AND TEAM SUPPORT Program Manager: James David, Principal Analyst, Administration Project Team: Parking Manager ALTERNATIVES 1. Cost proposals from other consultants or universities could be solicited, which will likely result in higher costs. Parker & Associates submitted a revised proposal (that was rejected) to complete preparation for curation only at a cost of $117,000. 2. Do nothing. Cleaning of the artifacts, placement in appropriate archive boxes, and a box inventory will be completed by ASC. The artifacts will return to the City without a basic excavation report, which is a major gap in the archaeological record. Furthermore, there will be no products that realize the research and interpretive potential of the collection, making its historical significance less accessible to the San Luis Obispo community. 3. Reduce funding for products. According to the consultant, the excavation report should be the City’s first funding priority at a cost of $15,000. Other itemized project costs are listed in the Cost Summary section below. COST SUMMARY Available funding in the Parking Fund’s Completed Projects account is $75,432, which is sufficient to cover this one-time SOPC request (#51050600-99899999). C-15 Attachment 1 B1-89 Section D RECENT FINANCIAL AND REVENUE REPORTS Attachment 1 B1-90 D-1 Attachment 1 B1-91 D-2 Attachment 1 B1-92 Year End TOT Revenues Prior Year Last YearThis Year 2012-132013-142014-15Amount Percent July $636,779$699,845766,29966,4549.5% August 623,655674,279739,80165,5229.7% September 508,583515,314560,72845,4148.8% October 469,977509,435597,11287,67717.2% November 359,163425,789478,67952,890 12.4% December 319,451355,315393,67138,356 10.8% Year To Date Total 2,917,608 3,179,977 3,536,290 $356,31311.2% January 303,196331,853 February 350,383367,300 March 434,212449,179 April 494,831567,570 May 489,862549,986 June 617,724646,237 Year To Date Total 5,607,816 6,092,102 3,536,290 This report is based on the amounts reported by the operators for the month in which the tax is due. Last Year Vs This Year Increase (Decrease) Monthly TOT Report December 2014 February 4, 2015 This report covers the City's transient occupancy tax (TOT) revenues for December 2014 compared with the two prior years. As reflected below, revenues for the month of December 2014 are up by 10.8% from the same month last year and up 11.2% year to date over the prior year. The December results continue the trend in year-over-year growth in this revenue and is a good indicator that travel activities continue to be positively impacted by the City’s ongoing campaign as a travel destination. Currently this report covers 38 hotel establishments representing 2,120 rooms. It also includes $2,539 in taxes collected from 37 Homestay properties. For more information, please call Michelle Bulow at (805) 781-7521. D-3 Attachment 1 B1-93 Quarterly Investment Report As of December 31, 2014 January 30, 2015 This report presents the City’s investment portfolio for the quarter ending December 31, 2014. It has been prepared to comply with regulations contained in California Government Code Section 53646. The report includes all investments managed by the City on its own behalf as well as for other third party agencies on a fiduciary basis such as the Whale Rock Commission. It also includes all City-related investments held by trustees for bond debt service obligations. As required, the report provides information on the investment type, issuer, maturity date, cost, and current market value for each security. The investment objectives of the City of San Luis Obispo are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all operating requirements; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives. The City follows the practice of pooling cash and investments for all funds under its direct control. Funds held by outside fiscal agents under provisions of bond indentures are maintained separately. Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund’s average quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to the related accounts. It is common for governments to pool the cash and investments of various funds to improve investment performance. By pooling funds, the city is able to benefit from economies of scale, diversification, liquidity, and ease of administration. The City uses the services of an investment advisor, PFM Asset Management, who took over as the City’s asset manager in November following the evaluation of proposals received from a variety of asset management firms. PFM manages a portion of the City’s portfolio. The City’s strategy is to retain approximately 20% of the portfolio to manage our day-to-day cash flow needs, while PFM’s focus is on longer-term investment management. In addition, the City has retained direct control of several investments that had been acquired before the City began to use investment advisors. All investments are held by the City in a safe keeping account with Bank of New York, except for investments held by trustees related to bond financings, which are held by US Bank. Investment Portfolio by Fund The City’s cash and investment portfolio represents money from all City funds, including the General Fund, enterprise funds, capital projects funds, and other funds which are restricted to specific purposes. In general, monies held by the city are either allocated by the City Council for spending or are purposefully retained in reserve. For example, the money in the Capital Outlay Fund has been identified to provide particular capital projects for the community and there is a plan for spending down the cash balance as the projects progress. In the General Fund, about $10 million is purposely held in reserve to meet the City’s reserve policy of 20% of operating expenditures. D-4 Attachment 1 B1-94 Quarterly Investment Report *PFM Asset Management took over as the City’s asset manager in November 2014. Current Portfolio Summary The following is a summary of the City’s cash and investments based on market value as of December 31, 2014 compared with the prior quarter: September 30, 2014 December 31, 2014 Percent of Portfolio Cash and investments held by the City 38,380,927 47,618,995 48.83% Cash and investments managed by PFM*45,139,869 45,294,066 46.45% Cash and investments held by trustees 4,604,238 4,601,598 4.72% TOTAL 88,125,034 97,514,659 100% There are a number of factors which result in changes in cash and investment balances from month to month and quarter to quarter. Often they are the result of the receipt of revenues or a large disbursement. Some major City revenues are received on a periodic rather than a monthly basis. Property Tax, for example, is received in December, January, April and May of each year. Other revenues, such as Transient Occupancy Tax, are received monthly but vary considerably because they are seasonal. On the disbursement side, payments for bonded indebtedness or large capital projects can reduce the portfolio substantially in the quarter that they occur. Significant fluctuations of this type will be discussed in the following section of this report. Securities in the City’s portfolio are priced by IDC, an independent pricing service at the end of every month. In some cases, the City may have investments with a current market value that is greater or less than the recorded value. These changes in market value are due to fluctuations in the marketplace having no effect on yield, as the City does not intend to sell securities prior to maturity. Nevertheless, these market changes will impact the total value of the portfolio as reported. At December 31, 2014 the market value of the portfolio was $146,500 less than the cost basis. The portfolio’s yield on a market basis as of December 31, 2014 was 0.46%, and the yield on a cost basis was 0.74%. (These amounts do not reflect the returns on the assets held by the bond trustee.) As of December 31, 2014, the investment portfolio was in compliance with all State laws, the City's Statement of Investment Policy and the City’s Investment Management Plan. Summary of Activity for the Quarter and Future Liquidity The overall value of cash and investments increased this quarter as semi-annual property tax payments totaling nearly $5.7 million were received from the County along with the $7.5 million proceeds from the Los Osos Valley Road Improvement Bond. Aside from the receipt of bond proceeds, cash receipts and disbursements are generally consistent with past trends for the quarter. The cash management program contains enough liquidity to meet the next six months of expected expenditures by the City as well as by related parties, such as the Whale Rock Commission. Report Contents and Distribution. This report includes the following four schedules on the City’s portfolio as of December 31, 2014: summary of investments held or managed by the City, trustees or PFM; summary of investment portfolio liquidity; investment details; and detail of holdings for each investment. These schedules have not yet been reviewed by the City’s independent auditor. If you have any questions concerning this report, or require additional information, contact Wayne Padilla, Director of Finance at (805) 781-7125. D-5 Attachment 1 B1-95 DISTRIBUTION LIST City Council Jan Howell Marx, Mayor John Ashbaugh, Vice Mayor Dan Carpenter, Council Member Carlyn Christianson, Council Member Dan Rivoire, Council Member Investment Oversight Committee Jan Howell Marx, Mayor Wayne Padilla, Director of Finance & Information Technology Michael Codron, Assistant City Manager Katie Lichtig, City Manager Vilma Warner, Finance Operations Manager Steven Barasch, Public Member Independent Auditor Allen E. Eschenbach, Glenn Burdette Attest Corporation PFM Asset Management Nancy Jones, Managing Director Carlos Oblites, VP/Portfolio Manager D-6 Attachment 1 B1-96 CITY OF SAN LUIS OBISPO SUMMARY OF INVESTMENTS As of December 31, 2014 Percent of Current Market Portfolio Yield Value Local Agency Investment Funds 57%0.25%27,222,083.00 Certificate of Deposit 2%0.27%1,000,000.00 Money Market Account 2%0.25%1,006,804.00 Checking Account 36%0.25%17,290,811.00 Treasury Issues 2%9.25%1,099,297.00 Total Investments Held by the City 100%0.45%$47,618,995.00 Percent of Current Market Portfolio Yield Value Federal Agency Issues 63%1.32%28,342,986.00 Money Market Fund 3%0.00%1,407,744.00 US Corporate Notes 14%0.95%6,251,722.00 Treasury Issues 21%1.05%9,291,614.00 Total Investments Managed by Public Financial Management 100%1.17%$45,294,066.00 Percent of Current Market Trustee Portfolio Yield Value First American Treasury Funds 2.00%0.00%91,951.00 Other Money Market Accounts 0.05%0.03%2,256.00 Certificate of Deposit 0.00%0.00% Guaranteed Investment Contracts 44.25%see below 2,036,161.25 Federal Agency Issues 18.41%2.53%847,217.00 Treasury Issues 35.29%Varies 1,624,013.00 Total Investments Held by Trustees 100%$4,601,598.25 Total of all Investments--Market Value $97,514,659.25 INVESTMENTS HELD AND MANAGED BY THE CITY INVESTMENTS OF THE CITY MANAGED BY PUBLIC FINANCIAL MANAGEMENT INVESTMENTS OF THE CITY HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS TOTAL CASH AND INVESTMENTS D-7 Attachment 1 B1-97 CITY OF SAN LUIS OBISPO SUMMARY OF INVESTMENT PORTFOLIO LIQUIDITY As of December 31, 2014 Managed Managed Percent of Market by City by PFM Portfolio Value On Demand 45,519,698.00 1,407,744.00 51%46,927,442.00 Within Three Months 0.00 2,632,168.00 3%2,632,168.00 Within Six Months 1,000,000.00 1,300,037.00 2%2,300,037.00 Six Months to One Year 7,087,259.00 8%7,087,259.00 Within One to Five Years 1,099,297.00 32,866,858.00 37%33,966,155.00 Over Five Years 0%0.00 TOTAL 47,618,995.00 45,294,066.00 100%$92,913,061.00 Percent of Market Portfolio Value On Demand 2%94,207.00 Within Six Months 0% Six Months to One Year 0%0.00 Within One to Five Years 25%1,135,422.00 Over Five Years 73%3,371,969.25 TOTAL 100%$4,601,598.25 Total of all Investments--Market Value $97,514,659.25 INVESTMENTS HELD BY THE CITY AND THOSE MANAGED BY PUBLIC FINANCIAL MANAGEMENT (PFM) INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS TOTAL CASH AND INVESTMENTS D-8 Attachment 1 B1-98 CITY OF SAN LUIS OBISPO INVESTMENT DETAIL As of December 31, 2014 Agency Investment Coupon Current Purchase Maturity Market (Broker)Description Rate Yield Date Date Value Local Agency Money Market Fund On Investment Fund City NA 0.25%Varies Demand 27,154,765.00 Local Agency Money Market Fund On Investment Fund CIB NA 0.22%Varies Demand 67,318.00 On Bank of America Checking Account NA 0.25%Varies Demand 17,290,811.00 Collateralized Heritage Oaks Certificate of Deposit NA 0.27%12/20/2013 12/20/2015 1,000,000.00 On Heritage Oaks Money Market Account NA 0.25%1/24/2012 Demand 1,006,804.00 B of NY Safekeeping U.S. Treasury Bond 9.25%9.25% 4/18/86 2/15/2016 1,099,297.00 TOTAL $47,618,995.00 INVESTMENTS HELD AND MANAGED BY THE CITY D-9 Attachment 1 B1-99 CITY OF SAN LUIS OBISPO INVESTMENT DETAIL As of December 31, 2014 Agency Investment Coupon Current Purchase Maturity Market (Broker)Description Rate Yield Date Date Value 2005 Refunding Lease Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00%Varies on demand $0.00 U. S. Bank United States Corporate Trust Services Treasury Bonds 6.00%4.49%6/26/96 2/15/26 $805,883.00 2006 Lease Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00%Varies on demand $27,285.00 Guaranteed FSA Capital Investment Contract Management Services LLC Treasury Fund 5.545%5.545%5/11/06 5/26/36 $1,000,813.75 2006 Water Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00%Varies on demand $27,259.00 Guaranteed FSA Capital Investment Contract Management Services LLC Treasury Fund 5.355%5.355%8/17/06 5/28/36 $1,035,347.50 2009 Lease Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00%Varies on demand $37,407.00 U. S. Bank Corporate Trust Services Federal Home Loan Bank 1.00%1.00%11/25/2014 6/21/2017 $35,029.00 U. S. Bank ederal Home Loan Mort. Corp Corporate Trust Services Medium term Note 0.75%0.76%11/25/2014 1/12/2018 $78,852.00 U. S. Bank Corporate Trust Services U.S. Treasury Note 1.50%1.50%11/25/2014 2/28/2019 $70,049.00 U. S. Bank Corporate Trust Services U.S. Treasury Note 1.13%1.14%11/25/2014 5/31/2019 $78,582.00 U. S. Bank Fed Home Loan Mort. Corp Corporate Trust Services Debenture 1.25%1.27%11/25/2014 8/1/2019 $78,523.00 U. S. Bank Corporate Trust Services Federal Nat'l Mtge. Assoc.1.75%1.75%11/25/2014 9/12/2019 $50,124.00 U. S. Bank Corporate Trust Services U.S. Treasury Note 0.88%0.88%11/25/2014 1/31/2018 $69,437.00 U. S. Bank Corporate Trust Services U.S. Treasury Note 1.38%1.37%11/25/2014 6/30/2018 $70,137.00 U. S. Bank Federal Nat'l Mtge. Assoc. Corporate Trust Services Debenture 1.88%1.84%11/25/2014 2/8/2018 $35,570.00 U. S. Bank Federal Nat'l Mtge. Assoc. Corporate Trust Services Debenture 0.88%0.88%11/25/2014 2/8/2018 $79,083.00 U. S. Bank Corporate Trust Services Federal Home Loan Bank 1.38%1.37%11/25/2014 3/9/18 $70,170.00 INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS D-10 Attachment 1 B1-100 2012 Water Revenue Refunding Bonds (Refunded 2002 Water Revenue Bonds) U. S. Bank U.S Bank Money Corporate Trust Services Market Account N/A 0.03%Varies on demand $2,252.00 U. S. Bank United States Corporate Trust Services Treasury Bond 2.00%1.99%Varies 11/25/21 $225,826.00 U. S. Bank United States Corporate Trust Services Treasury Bond 7.125%5.150%Varies 2/15/23 $304,099.00 2012 Revenue Refunding Bonds (Refunded 2001 Revenue Refunding Bonds) U. S. Bank U.S Bank Money Corporate Trust Services Market Account NA 0.00%Varies on demand $4.00 U. S. Bank Corporate Trust Services Federal Home Loan Bank 5.50%5.11%Varies 8/15/16 $419,866.00 TOTAL $4,601,598.25 CITY OF SAN LUIS OBISPO INVESTMENT DETAIL As of December 31, 2014 The City of San Luis Obispo maintains certain performance objectives for the investments that are managed by Public Financial Management. The overall performance objective for the portfolio is to earn a total rate of return over the market cycle that equals or exceeds the market index. In order to achieve this objective the portfolio invests in high-quality money market instruments, US Treasury securities, Agency securities, and high-grade corporate securities, with a maximum maturity of five years. To monitor the achievement of this objective, the City uses a “Benchmark” to compare to. The benchmark which is used is based on the BofA Merrill Lynch Index of 0-5 year Treasury securities. Below is a summary of the monthly results as compared to the benchmark. While the City strives to achieve this performance objective every month, the goal is assumed to be met on an annual basis. The City of San Luis Obispo is currently just under the benchmark goals in most categories. We feel that through market trends and current investing adjustments, our performance will meet or exceed the benchmarks by the end of the fiscal year. Benchmark Comparison for the Quarter Ended 12/31/14 Benchmark 12/31/14 Portfolio 9/30/14 Portfolio Average Maturity (yrs)2.23 1.89 1.9 Modified Duration 2.17 1.78 1.85 Average Purchase Yield n/a 1.13%1.15% Average Market Yield 0.79%0.76%0.69% Average Quality AA+AA+/Aaa AA+/Aaa Total Market Value $45,294,066 $45,139,869 The following pages provide a summary of the portfolio under management by Public Financial Management (PFM) as well as a detailed holding report for the month. PFM took over the management of the portfolio in December 2014. MANAGED BY PUBLIC FINANCIAL MANAGEMENT D-11 Attachment 1 B1-101 SLOCity.org © 2014 City of San Luis Obispo Attachment 1 B1-102 THIS PAGE IS INTENTIONALLY LEFT BLANK RESOLUTION NO. (2015 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING CHANGES TO THE 2014-15 BUDGET, INCLUDING THE APPROVAL OF SUPPLEMENTAL FUNDING REQUESTS WHEREAS, on June 17, 2014 the City Council approved the 2014-15 budget; WHEREAS, in accordance with the City’s Budget and Fiscal Policies, staff has completed a review of the city’s revenue and expenditure trends and has developed revised budget amounts which are explained and compiled in the Mid-Year Budget Review; and WHEREAS, the City Manager has recommended the approval of five supplemental funding requests received from the Administration, Public Works, and Fire Departments. NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo that: 1. The revised revenue and expenditure forecast amounts for 2014-15 identified in the Mid-Year Budget Review presented on this date are hereby adopted as the revised budget for 2014-15. 2. The supplemental funding requests for the operating programs of the Fire and Administration Departments and the Capital Program are hereby approved. 3. The City Manager is hereby directed to make modifications to work programs, policies, and other components of the Financial Plan to reflect consistency with funding approvals set forth in this resolution. ****************** Attachment 2 B1-103 Resolution No. _ (2015 Series) 2014-15 Mid-Year Budget Review On motion of ___________________, seconded by _______________________, and on the following vote: AYES: NOTE: ABSENT: The foregoing Resolution was passed and adopted on February 17, 2015. ATTEST: _________________________________ Mayor Jan Marx Anthony J. Mejia City Clerk APPROVED: J. Christine Dietrick City Attorney Attachment 2 B1-104 2014-15 Mid –Year Budget Review 2013-15 Financial Plan. February 17, 2015 Meeting Objectives Review and discuss the City’s financial condition at the mid- point of 2014-15 Consider supplemental funding requests for approval Adopt a resolution approving changes to the 2014-15 budget as identified in the 2014-15 Mid-Year Budget Review Mid-Year Budget Review Process City budget and fiscal policies call for review of revenue and expenditure trends and changes at the mid-point of the fiscal year Incorporates 2013-14 financial results for all funds Recognize encumbrances from the prior year, Recognize capital project budget balances from prior year Recognize other budget changes approved since the start of the year Recognize revenue and expenditure trends and recommend changes where needed Identify supplemental funding requests General Fund Highlights at Mid-Year Mid-Year update provides indication that economy is recovering and expenses are being managed At 2013-14 Fiscal Year end, General Fund reserve exceeds the 20% policy level by $4.2 million 2014-15 reserve exceeds the 20% policy level by $3.6 million after considering: Supplemental funding requests of $102,450 Retrospective Insurance reserve designation of $2.4 million Development Services reserve of $996,000 Staff intends to report back to Council with recommendations for potential uses of reserve balance at Strategic Budget Direction meeting in April Sources of 2014-15 General Fund Balance In Excess of 20% Policy: $3.637 Million Total General Fund Revenues 2014-15 revenues are forecast to increase by $2.7 million over the original budget: Tax Revenues: $810,000 increase Service Charges: $1.443 million increase Development Services: $1.328 million increase Grant Revenues: $391,800 increase 2014-15 Tax Revenues at Mid-Year Original Budget Revised Budget Change General Sales Tax 15,276,800 15,232,511 (44,289) Local Sales Tax 6,775,000 6,902,000 127,000 Public Safety Tax (Prop 172) 350,400 411,000 60,600 Property tax 8,933,600 9,263,333 329,733 Property tax in lieu of VLF 3,721,600 3,849,341 127,741 Transient occupancy tax 6,289,800 6,517,974 228,174 Utility users tax 5,500,000 5,345,343 (154,657) Franchise fees 2,540,200 2,676,148 135,948 Business tax certificates 2,184,500 2,184,500 - Real property transfer tax 180,000 180,000 - Total 51,751,900 52,562,150 810,250 Sales Tax Trends Transient Occupancy Tax (TOT) Property Tax Trends (Including Vehicle License Fee in-lieu) General Fund Operating Expenditures General Fund operating expenditures are forecast to increase by $2.6 million over the original budget for the following purposes: Description Cost Encumbrance roll-over $1,212,000 Carryover of 2013-14 balances for multi-year objectives $680,200 Allocation of 2013-14 Excess Development Services Revenue $468,400 Allocation of Grant Revenues, primarily Fire Dept. Mutual Aid $348,900 SOPC Requests (2) $33,250 Reductions for transfer of Legal Fees to Parking Fund and accounting of Boysen Ranch Fund costs ($77,200) TOTAL $2,665,000 General Fund Transfers Out General Fund transfers to other funds are proposed are increased by $97,803 for the following: Description Cost CIP Requests (2) $69,200 Downtown Renewal Project (previously approved by Council) $79,000 Pismo Preserve (previously approved by Council) $75,000 Debt Service Reduction (revised payment schedule for LOVR & IT debts) ($195,135) Legal Fees Transfer to Parking Fund $69,700 TOTAL $97,803 Mid-Year Funding Requests General Fund SOPC’s Fire Apparatus Operating Budget: $26,000 One-time funding for 2014-15 Emergency response apparatus needs Insufficient funding in contract and operating supply accounts Likely to be an on-going need addressed in 2015-17 Financial Plan Revenue Enhancement Oversight Commission (REOC): $4,250 On-going request. reflects ½ year funding in 2014-15 and start up costs (excluding training) 2015-16 cost of $14,500 Cost of member compensation, materials, supplies, training Mid-Year Funding Requests Parking Fund SOPC Palm Street Chinatown Artifacts: $55,000 Request to complete stabilization and preparation for storage of artifacts Create products associated with the collection to demonstrate its historical significance in the community Cultural Heritage Committee to consider options. Initial ideas include: Outdoor kiosk in the Chinatown district Display at City Hall or other exhibit case Academic papers to be made available Project can be funded with available balance in Parking Fund completed projects account Mid Year Funding Requests Capital Improvement Plan (CIP) Santa Rosa Ball Field Barrier Netting: $40,000 Install poles and netting along softball field adjacent to skate park Address safety concern and prevent softballs from being hit into the skate park Pedestrian and Bike Path Maintenance: $29,200 Allows for reconstruction of two sections of pathways adjacent to tennis courts at Sinsheimer Park Additive to pedestrian pathway maintenance planned at the park Retrospective Insurance $2.44 million General Fund reserve designation is proposed for retrospective insurance costs In 2015-16, $1.4 million total ($1.1 million General Fund) is owed to California Joint Powers Insurance Authority (CJPIA) for a retro adjustment related to plan years ending with 2012-13 Additionally, staff recommends increasing the General Fund reserve by $1.32 million to guard against costs of this nature in the future Reserve will be reviewed annually CJPIA has developed a new funding model designed to eliminate retrospective adjustments in the future This only applies to plan years after 2012-13 Plan years from 2012-13 and earlier will continue to be reviewed annually until all claims are closed Development Services Development Services revenues are projected to be $1.3 million in excess of the original budget $996,000 or 75% of excess revenues are proposed to be put into a designated reserve for future activities Development application fees represent a prepayment for work in the development review process Work can occur months or years after an application is processed Reserve designation is anticipated to be appropriated in 2015-16 Capital Project Fund Changes General Purpose CIP brought forward $7.4 M of funds from the prior year $1.5 million of encumbrance rollovers $5.8 million of CIP carryforward Carry forward was accompanied by $2.9 M of unspent grant monies $69,200 in new requests for Santa Rosa Ball Field netting, Bike & Pedestrian Maintenance Enterprise Fund Expenditure Changes $3.2 million of encumbrances rolled over for all Enterprise Funds $19 million of CIP appropriations were carried forward from the prior year for all Enterprise Funds Sewer Fund $13.4 million in carry forward, including $9 million for the WRRF project Water Fund $3.2 million carry forward Parking Fund $1.8 million carry forward Water Fund Revenues Water Fund revenues are projected to decline by $14,300 Water Service Charges projected to decline by $869,200 Reductions in the use of water Sales to other agencies declining by $82,900 In 2014-15, Development Impact Fee revenues are projected to increase by $921,400 in the Water Fund A comprehensive review of Water Fund rates will be presented to the City Council as part of the 2015-17 Financial Plan process Other Funds Tourism Board Improvement District (TBID) Revenue increased by $45,260, based on increases in TOT $148,400 increase in operating expenditures, funded from higher than expected revenues in 2013-14 Public Art Fund recognizes $20,700 of in-lieu fee revenue which has been realized Affordable Housing Fund revenue increasing by $263,700 in 2014-15 representing: $34,700 in State grant appropriations $229,000 of Inclusionary Housing Fee revenue Recommendation Adopt a resolution approving changes to the 2014-15 budget as identified in the 2014-15 Mid-Year Budget Review