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HomeMy WebLinkAbout02/04/2003, BUS 5 - CONTINUED CONSIDERATION OF COUNCIL GOAL-SETTING FOR 2003-05 (ONLY IF NEEDED)0 FROM SUBJECT i council ac cn c)a Report C I T Y OF S A N L U I S O B I S P O Wei., Dw 2-4 -03 i lam I�umhcr n � a Ken Hampian, City Administrative Officer Bill Statler, Director of Finances CONTINUED CONSIDERATION OF COUNCIL GOAL- SETTING FOR 2003 -05 (ONLY IF NEEDED) CAO RECOMMENDATION If needed, continue consideration of goals for 2003 -05 from the February 1 budget workshop. DISCUSSION Council consideration and prioritization of goals for 2003 -05 has been scheduled for an all -day budget workshop on Saturday, February 1. While we hope that this step in the 2003 -05 Financial Plan process will be completed at the February 1 budget workshop, this item has been conditionally scheduled in the event that additional time is required to complete this process. G: Budget Folders/2003 -05 Financial Plan /Council Goal- Setting/Council Agenda Reports /Continued Goals Consideration RECEIVED F`B 0 3 2003 b9fficouncit memmanoum Icity of San Luis Obispo DATE: February 3, 2003 TO: Mayor & Members of the City Council RED FILE AflE 1NG AGENDA► VIA: Ken Hampian, CAO DAT� ITEM # FROM: Lee Price, City Clerk SUBJECT: 2/4/03 Council Agenda Item B5: RESULTS OF COUNCIL GOAL SETTING The attached Council Agenda Report should replace the one in your packet, which was intended to be a "place holder ". COUNCIL RT CAO ;Z ACAO 2r- ATTORNEY [;'CLERK/ORIG Gr CDD DIR ZrFIN DIR rZ FIRE CHIEF B'PW DIR E!r POLICE CHF Z REC DIR ;d'UTIL DIR eHR DIR Cou dMc rondum Htu rILJt T NG AGENDA RECEIVED ITEM #War lat FEB 0 1;� 2oQ� "'`m°`D� 2 -4 -03 ac,Enda RepoRt 1L0 CITY CLERK "h' &� CITY OF SAN LUIS OBISPO FROM: Ken Hampian, City Administrative Officer( �/ Bill Statler, Director of Finance SUBJECT: RESULTS OF COUNCIL GOAL - SETTING CAO RECOMMENDATION COUNCIL' tai CDD DIP G.YCAO FIN DIP J2 ACAO 1a FIRE CHIEF Z ATTORNEY rd PW DIR 0 CLERK/ORIG POLJCECHF ❑ D6 PlEADS ZREC DIP u UTIL DIP I _ L HR DIR 1. Set direction for the 2003 -05 Financial Plan by affirming Council goals as established at the February 1, 2003 workshop. 2. Approve a conceptual budget balancing strategy that includes an appropriate combination and weighing of five key factors: CIP reductions and deferrals; strategic use of fund balance; revenue enhancements allowed under Proposition 218; organization -wide cost reduction strategies; and operating program reductions. DISCUSSION Overview As discussed with the Council at the goal- setting workshop on February 1, the City's budget process needs to begin with direction from our elected leaders—the Council —on the most important, highest priorities things for the City to accomplish over the next two years. In light of the budget balancing decisions ahead of us, this focus is especially critical for 2003 -05. However, it is important to stress that setting Council goals at this stage is the beginning of our budget process, not the end; it is Council priorities leading the way, with the rest of the process to follow. It is also important to stress that final adoption of Major City Goals does not occur at this point, but with adoption of the 2003 -05 Financial Plan in June 2003, where they are placed in the overall context of the City's fiscal policies, revenue picture, other program objectives, capital improvement plan (CIP) projects and overall resource allocation decisions. As such, while it is important for staff to have clear direction from the Council on priorities as we prepare the Preliminary Financial Plan for Council consideration in May 2003, it also important to note that these goals are not "cast in stone," and changes can (and are likely to) be made to them as the Financial Plan process goes forward over the next free months. Council Goal- Setting Attached are the goal- setting results from the Council's workshop on February 1, organized by priority category: major City goals and other important objectives: 1. Major City Goals. In general, goals in this category represent new initiatives, or the continuation of existing ones where significant additional resources are likely to be required. Results of Council Goal- Setting Page 2 If the work program approved by the Council for a Major City Goal is not included in the CAO's Preliminary Financial Plan, compelling reasons and justification must be provided as to why resources could not be made available to achieve this goal. 2. Other Important Objectives. Goals in this category are also important for the City to accomplish. In general, goals in this category are the continuation of current goals, or new initiatives that are not likely to have significant General Fund resource requirements. Within each priority category, the goals are organized by functional and program areas. Next Step. On April 10, 2003, we plan to return to the Council with detailed work programs for the Major City Goals (as well as for the Long -Term Fiscal Health "preamble ") in order to ensure that we have a clear understanding of what the Council hopes to achieve with each Major City Goal over the next two years. Unless the staff fully understands the scope and timeframe that the Council intended, we cannot identify needed resources; and without this understanding, the Preliminary Financial Plan may significantly over (or under) fund the desired work effort. Accordingly, the purpose of each work program is to: 1. Define and scope the adopted goal. 2. Ensure that there is a clear understanding of the goal so appropriate resources are allocated, and progress can be measured in achieving it. This is especially important in the case of objectives where fully achieving the goal is likely to extend well beyond the two -year Financial Plan period. However, we can measure progress — and our success in accomplishing the goal —by clearly defining the specific actions we plan to undertake over the next two years. Work Program Content. Each work program will include the following information: 1. Objective. Generally, this is the action statement adopted by Council. In some cases, staff may recommend some minor text changes for clarity; however, any such changes will be clearly highlighted. 2. Discussion. This section has two parts: • Background. What is the proposed workscope? What related work has the City done in the past? • Challenges we will face in achieving this goal What obstacles can we reasonably expect in achieving this goal as we begin implementation? This could include the results of environmental review, regulatory or granting agency requirements, potential stakeholder oppositions, financial challenges or the results of the public review process. 3. Action Plan. What specific tasks can we reasonably achieve over the next two years, and when will we do them? Knowing this will help us in scoping and defining the project and in monitoring our progress in accomplishing it over the next two years. As noted above, Results of Council Goal- Setting Page 3 defining tasks over the next two years is especially important for long -term goals that are likely to have work efforts associated with them beyond the 2003 -05 Financial Plan timeframe. 4. Responsible Department. Organizationally, who is accountable for getting this done? In some cases, more than one department will be responsible for certain tasks, or there will be a lead department with support from others. While this will be noted, we need to clearly identify which department has the overall responsibility for overseeing and managing accomplishment of the goal. 5. Financial and Staff Resources Required to Achieve the Goal. What will it take to achieve the goal? Do we have to add resources to do this? If so, what kind and how much will it cost? 6. General Fund Revenue Potential. What (if any) General Fund revenue potential exists if the goal is achieved? 7. OutcomefFinal Work Product. What will we get if we achieve the goal —what is the "deliverable" —and why is this important? Conceptual Budget Balancing Strategy As discussed with the Council at the goal- setting workshop, we recommend that the following principles be used in developing the City's budget balancing plan for 2003 -05. 1. Reflect Council Goals and Priorities. First and foremost, the budget balancing strategy needs to reflect the results of the Council's goal- setting process. This includes the "formal goals" set by the Council as well as the informal discussion and ideas generated at the workshop on possible revenue enhancements and cost reductions areas. 2. Five -Point Strategy. In closing the $5.5 million gap ahead of us, we recommend bringing a broad range of options to the table, including an appropriate combination and balancing of five key factors: a. CIP reductions and deferrals. b. Strategic use of fund balance. c. Revenue enhancements allowed under Proposition 218. d. Organization -wide cost reduction strategies. e. Operating program reductions. Additionally, as noted above, Council Members offered a number of suggestions at the workshop for further consideration, which we have documented and will reference as we develop our recommended budget balancing strategy and prepare the Preliminary Financial Plan. Results of Council Goal- Setting Page 4 We plan to bring our recommended budget balancing strategy for 2003 -05 to the Council on April 10, 2003, along with the Major City Goal Work Programs. Next Steps The following summarizes the remaining Council steps in the 2003 -05 Financial Plan process: Council Dates Tuesday, February 18 1 • Mid -Year Budget Review. Consider the City's fiscal status at the Regular Meeting mid -point of the fiscal year and make appropriation adjustments as necessary. Thursday, April 10 • Major City Goal Work Programs. Review and approve detail Special Budget Workshop work programs to accomplish major City goals. • Budget Balancing Strategy. Review and approve the budget - balancing strategy for 2003 -05. Thursday, May 15 • Preliminary Financial Plan. Receive 2003 -05 Preliminary Financial Plan and Appendices A & B: Significant Operating Program Changes and Capital Improvement Plan (CIP) Projects. Thursday, May 22 • Budget Workshop. Review the Financial Plan overall and General Special Budget Workshop Fund operating programs. Tuesday, May 27 • Budget Workshop. Review General Fund CIP projects. Special Budget Workshop Thursday, May 29 • Budget Workshop. Review Enterprise Fund operating programs, Special Budget Workshop CIP projects, revenue requirements and rates. Tuesday, June 3 • Budget Workshop. Continue to discuss and receive public Regular Meeting comment on the Preliminary Financial Plan. Tuesday, June 17 • Public Hearing. Continue to discuss and receive public comment Regular Meeting on the Preliminary Financial Plan; adopt the budget. SUNEMRY Council goal - setting is an important "first step" in the City's Financial Plan process. In fact, it is important to stress just this fact —it is the beginning of the budget process, not the end. Setting goals —and subsequently approving work programs for major City goals —is not adoption of the budget. As reflected in the budget schedule above, this will not occur until June 2003, following issuance of the Preliminary Financial Plan and extensive budget workshops and hearings. ATTACHNIENT Council Goals for 2003 -05 G: Budget Folders/2003 -05 Financial Plan/Council Goal- Scuing/Council Agenda Reports/Results of Council Goal- Setting February 3, 2003 OVERVIEW The Council has set the following goals for the next two years in providing direction for preparing the 2003 -05 Financial Plan. They are organized into two priority categories: major City goals and other important objectives: Major City Goals. In general, goals in this category represent new initiatives, or the continuation of existing ones where significant additional resources are likely to be required. If the work program approved by the Council for a Major City Goal is not included in the CAO's Preliminary Financial Plan, compelling reasons and justification must be provided as to why resources could not be made available to achieve this goal. 2. Other Important Objectives. Goals in this category are also important for the City to accomplish over the next two years. In general, goals in this category reflect the continuation of current goals, or new initiatives that are not likely to have significant General Fund resource requirements. Within each priority category, the goals are organized by functional and program areas. Next Step. On April 10, 2003, the Council will consider detailed work programs for the Major City Goals in order to: 1. Define and scope the adopted goal. 2. Ensure that there is a clear understanding of the goal so appropriate resources are allocated, and progress can be measured in achieving it. This is especially important in the case of objectives where fully achieving the goal is likely to extend well beyond the two -year Financial Plan period. However, we can measure progress —and our success in accomplishing the goal —by clearly defining the specific actions we plan to take over the next two years. Each work program will fully discuss work already completed to -date on the goal, challenges we are likely to face in achieving the goal, an "action plan" detailing specific tasks and due dates over the next two years, and the financial and staff resources that will be required to accomplish these tasks. LONG -TERM FISCAL HEALTH Accomplishing the goals outlined below will require a continued commitment to protecting the City's long -term fiscal health. Given the significant fiscal challenges facing us based on the recently prepared five -year forecast, this will mean developing a comprehensive strategy for preserving essential services and adequately maintaining existing facilities and infrastructure, while at the same time protecting the City's fiscal health. Along with the Major City Goals, a Work Program for doing so will also be presented to the Council on April 10, 2003.. MAJOR CITY GOALS Goals in this category represent new initiatives or the continuation of existing ones where significant additional resources are likely to be required. Public Utilities 1. Long -Term Water Supply. Continue with aggressive efforts to develop permanent, reliable water sources to meet City build out needs, including all options under current Council policy. Transportation 2. Street and Sidewalk Maintenance. Continue maintenance of streets and sidewalks at a moderate level. 3. LOVRIHighway 101 Improvements. Continue working towards interchange improvements at the Los Osos Valley Road/Highway 101 overpass. I, I 2003 -05 Financial Plan: Council Goals Page 2 4. Bikeway Improvements: Railroad Safety Trail. Acquire right -of -way and property for extension of the Railroad Safety Trail from the Jennifer Street Bridge to Cal Poly. Leisure, Cultural and Social Services 5. Therapy Pool. Pursue development of a warm water therapy pool at Sinsheimer Aquatic Center through a financing program for its construction and ongoing operation that will not use general - purpose revenues. Community Development 6. Housing. Adopt a housing element that expands housing opportunities for very low, low and moderate income households, preserves and enhances residential neighborhoods and complies with state laws including CEQA; and continue to aggressively advocate that Cal Poly adhere to its own master plan, including adequate on- campus student housing.. 7. Neighborhood Wellness. Improve neighborhoods and neighborhood involvement by continuing to implement the neighborhood wellness program, including consideration of a rental inspection ordinance.. 8. Broad Street Area Plan. Create a neighborhood concept plan for the South Broad Street area from South Street to Orcutt. 9. Downtown Improvements: Monterey Plaza. Pursue the creation of a "Monterey Plaza" for civic gatherings and passive recreation, dependent upon the Copeland project. 10. Economic Development: TOT Generators Encourage and promote projects that will increase lodging and conference facilities to expand transient occupancy tax (TOT) revenues. 11. Economic Development Sales Tax Generators. Encourage and promote retail projects that will increase.sales tax revenues. OTHER IMPORTANT OBJECTIVES Goals in this category are also important for the City to accomplish over the next two years. In general, they reflect the continuation of current goals, or new initiatives that are not likely to have significant General Fund resource requirements. Transportation 12. laurel Lane/Orcutt/Bullock Realignment. Complete the realignment of Laurel Lane /Orcutt/Bullock Streets. 13. Santa Barbara Street Widening. Complete the existing widening project for Santa Barbara Street from Highway 227/Broad Street to Roundhouse. 14. Waterways Management Plan Implementation Program. Upon completion of the Waterways Management Plan, adopt an implementation program. 15. Palm- Nipomo Parking Structure Plans. Complete an environmental assessment, preliminary studies and evaluation of options for a new parking structure at Palm and Nipomo Streets per the Conceptual Physical Plan for the City's Center. 16. Short -Range Transit Plan. Implement the Short-Range Transit Plan. Community Development 17. Airport Area Annexation. Annex the Airport Area. 18. Dalidio Property Annexation. Annex the Dalidio property. 19. Auto Center Expansion. Continue to explore the possibility of expanding Auto Center sites via annexation of the McBride and "gap" properties. 20. Downtown Improvements: Cultural Center Development. Encourage development of a Cultural Center (Art Center, Mission Museum, Historical Museum, Little Theater, Children's Museum, etc.) in the Mission Plaza extension area as illustrated in the Downtown Concept Plan, and support this effort through the existing Partnership Policy where possible.