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HomeMy WebLinkAbout02/18/2003, BUS 4 - 2002-03 MID-YEAR BUDGET REVIEW coon a L Meecw Dar 2-18-03 ac,Enba wpmt ,=� CITY OF SAN LU I S OBISPO FROM: Ken Hampian,City Administrative Officer Bill Statler,Director of Finance Carolyn Dominguez, Accounting Manager SUBJECT: 2002-03 MID-YEAR BUDGET REVIEW CAO RECOMMENDATION 1. Consider the mid-year budget review for 2002-03. 2. Approve mid-year budget requests for General Fund operating programs totaling$311,100. 3. Reduce appropriations in the Capital Outlay Fund for street pavement resealing and resurfacing by$42,000 to account for reduced State funding for this purpose. 4. Increase General Fund support to the Creek and Flood Protection Fund to offset reduced revenue estimates of$33,000 from Zone 9. 5. Increase General Fund support to the Golf Fund to offset reduced revenue estimates of$32,000. DISCUSSION The accompanying Mid-Year Budget Review for 2002-03 provides a comprehensive overview of the City's fiscal condition at the mid-point of the fiscal year.. The Transmittal Memorandum (page A-1) sets forth a concise summary of key revenue and expenditure trends since adoption of the 2002-03 Financial Plan Supplement, along with a comparison of this updated information with the more recent five-year fiscal forecast. It also includes supporting documentation for the recommended mid-year budget adjustments. Overview: How Are We Doing? To borrow from Charles Dickens,this mid-year budget review is the"tale of two reports:" 1. How we are doing compared with the 2002-03 Financial Plan Supplement, which the Council adopted in June 2002—and until it is formally amended as part of the mid-year budget review, is still our`official" starting point for comparison. 2. And how we are doing compared with the more recent five-year General Fund forecast, which was presented to the Council in December 2002. The following summarizes the different meanings of these two stories: Compared with the 2002-03 Adopted Budget. Overall, our updated projections compare favorably with those set forth in the 2002-03 Financial Plan Supplement, which the Council adopted in June 1/4 2002-03 Mid-Year Budget Review Page 2 2002. Most key revenues are performing well compared with original budget estimates and expenditures are generally on-target with our projections. As such, the projected General Fund balance at the end of 2002-03 is $7.4 million, which is $985,200 higher than the $6.4 million estimate in the 2002-03 Budget; and reflects an ending balance that is 23% of operating expenditures compared with our minimum fund balance policy of 20%. While improved revenues and contained costs play a modest role, the main reason for this is the higher-than-projected General Fund balance at the beginning of the fiscal year. The reasons for this were discussed in detail when we presented the Annual Financial Report Plan for 2001-02 to the Council in December 2002. As such, because most of this improvement is one-time carryover from 2001-02, and recent revenue trends have been mixed at best, we will be watching economic trends and our revenue projections closely, and making modifications as part of the Preliminary 2003-05 Financial Plan as appropriate. Because of the volatile economic, State budget and foreign policy situation ahead of us, combined with adverse trends in insurance costs, transient occupancy tax (TOT) and PERS rates, there is the strong likelihood that our revenue and projected ending funding balance picture will have eroded further when we present the Preliminary 2003-05 Financial Plan to the Council in May 2003. Compared with the More Recent Forecast. The mid-year budget review builds on the results of the five-year forecast; however, it also reflects changes since then based on updated information. As a result, it projects a different—and lower—estimate for the 2002-03 ending General Fund balance than the forecast. This means that while the projected ending fund balance for 2002-03 of$7.4 million is favorable compared with the adopted budget, it is less favorable compared with the more recent five-year forecast. After adjusting for mid-year budget requests and other revenue and expenditure changes, our revised ending fund balance estimate of $7.4 million is $600,000 lower than the $8.0 million balance projected in the five-year fiscal forecast. This is due to three key factors, which were foreshadowed as potential problems in the forecast: 1. Supplemental appropriations, including mid-year budget requests with a net fiscal impact of $271,100 ($311,100 before offsetting funding of $40,000) and City funding of $90,500 for the Orcutt Area EIR. 2. State budget cuts that are likely to occur in 2002-03 ($125,000). 3. And a combination of revised revenue and expenditure estimates based on more recent trend information ($183,600). Where to From Here? Given the challenges facing us in preparing a balanced budget for 2003-05, we have only proposed mid-year budget requests that need to be approved now in order to meet timing requirements, or adequately fund current programs and projects through the end of the fiscal year. As noted in the Transmittal Memorandum, based on recent trends in TOT revenues; insurance costs and PERS rates, combined with the volatile economic, State budget and foreign policy situation ahead of us, we are likely to see our carryover into 2003-05 get smaller, and the projected $5.5 million gap beginning in 2003-04 get bigger, when we present the Preliminary 2003-05 Financial Plan to the Council in May 2003. 2002-03 Mid-Year Budget Review Page 3 Background: Purpose of the Mid-Year Budget Review The City's two-year Financial Plan provides for the submittal of a report on our financial status to the Council every six months. For fiscal monitoring purposes, on-line access to up-to-date information is available to all departments, financial reports are issued monthly to key staff members and comprehensive quarterly financial reports are distributed to the Council and Department Heads on an ongoing basis. However, the formal submittal of a review at the mid- point of the fiscal year provides an opportunity to take a broader look at the City's financial picture, including: 1. Comparing revised revenue and expenditure projections with those originally made in the 2002- 03 Financial Plan Supplement. 2. Identifying and presenting any fiscal problem areas to the Council, and recommending corrective action or additional funding if required. 3. Presenting the status of major City goals and other important objectives. Report Organization Introducing the accompanying mid-year budget review is the Transmittal Memorandum, which provides a concise review and analysis of the City's financial position, and summarizes the need for the requested mid-year budget adjustments. The report also includes: 1. Comprehensive presentations of projected revenues, expenditures and changes in fund balance/working capital for each of the City's funds for 2002-03 compared with original budget estimates and actual results from 2001-02. 2. Detailed supporting documentation for the requested mid-year budget adjustments. 3. Recent financial and revenue reports. 4. Status reports on major City goals and other important objectives. ENCLOSURE Mid-Year Budget Review for 2002-03 (A copy is available for public review in the City Clerk's office) G:Budget Folders/Mid-Year Budget Reviews/Mid-Year Budget Review,2002-03/Council Agenda Report r .� , ,� rt tux r }': .,� •r. Jt � r y:4L ♦ R t yMl4:I \J � �',�S.v1` / \{ [� WRIY^+CYs•MJES.4'A8#Ms.�..X 1��1f<sAf'1!Y'1R9 MOM Yly.f fr{��' T '1't ._�'-..t'✓ tle �T: Z'.'n' _F `�/ii si'S,?�d'A"�M�� z . t, t�rL�t 2001 -0.3 Financial Plan MID-YEAR BUDGET REVIEW: 2002-03 1 ' DAVID ROMERO,MAYOR CHRISTINE MULHOLLAND,VICE MAYOR JOHN EWAN, COUNCIL MEMBER KEN SCHWARTZ, COUNCIL MEMBER ALLEN SETTLE, COUNCIL MEMBER ' KEN HAMPIAN, CITY ADMINISTRATIVE OFFICER ' Prepared by the Department of Finance Bill Statler,Director of Finance/City Treasurer ' Carolyn Dominguez, Accounting Manager city of san tuis oBISPO I I TABLE� OF CONTENTS A.Transmittal Memorandum Enterprise Funds Water B-37 Overview A-1 Sewer B-38 Financial Condition Summary A-2 Creek and Flood Protection B-39 ' Mid-Year Budget Requests A-3 Parking B-40 Prospects for the Future A4 Transit B41 Conclusion A4 Golf Fund B42 General Fund Financial Condition Summary A-5 Whale Rock Reservoir B43 B. Financial Condition Summaries C. Mid-Year Budget Requests Revenues by Major Category and Source B-1 Summary of Mid-Year Budget Requests C-1 Operating Programs B-5 Significant Operating Program Changes Summary By Function B-8 Summary By Program Booking Fees C-2 Public Safety B_9 Margarita and Airport Specific Plans C-3 Public Utilities B-10 Housing Element Update C-7 Transportation B-11 Building Plan Review Contract Services C-10 Leisure,Cultural &Social Services B-12 Property Insurance Premium C-11 Community Development B-13 General Government B-14 D. Recent Financial and Revenue Reports Capital Improvement Plan B-15 Quarterly Financial Newsletter. ' Interfirnd Transactions December 2002 D-1 Operating Transfers B-17 Monthly TOT Report: December 2002 D-3 Reimbursement Transfers B-19 Sales Tax Newsletter: ' -4 Changes in Financial Position Third Calendar Quarter, 2002 D Combined Statements E. Goals and Objectives Status Report ' All Funds Combined B-20 Governmental Funds B-21 Introduction E-1 Enterprise and Agency Funds B-22 Major City Goals E4 General Fund B-23 Other Council Objectives E-21 Special Revenue Funds Downtown Association B-24 ' Gas Tax B-25 Transportation Development Act B-26 CDBG B-27 ' Law Enforcement Grant Fund B-28 Capital Project Funds I Capital Outlay B-29 Parkland Development B-30 Transportation Impact Fee B-31 Open Space Protection B-32 Airport Area Impact Fee B-33 Affordable Housing B-34 Fleet Replacement B-35 IDebt Service Fund B-36 I 1 Section A TRANSMITTAL MEMORANDUM I TRANSMITTAL February 18,2003 ITO: City Council 4� FROM: Ken Hampian, City Administrative Officer Bill Statler,Director of Finance/City Treasurer �`"�i�` Carolyn Dominguez, Accounting Manager SUBJECT: MID-YEAR BUDGET REVIEW FOR 2002-03 I OVERVIEW set forth in the 2002-03 Financial Plan Supplement, which the Council adopted in June 2002. Most key revenues are performing well compared with This document has been prepared in accordance original budget estimates and expenditures are with the City's Financial Plan policy of submitting a generally on-target with our projections. As such, formal report on the City's fiscal status to the the projected General Fund balance at the end of Council every six months. Although financial 2002-03 is $7.4 million, which is $985,200 higher reports are distributed to the Council on an ongoing than the $6.4 million estimate in the 2002-03 basis, the formal submittal of a review at the mid- Budget; and reflects an ending balance that is 23% ' point of the fiscal year provides an opportunity to of operating expenditures compared with our identify and present any fiscal problem areas to the minimum fund balance policy of 20%. Council, and to recommend corrective action or additional funding if required. A summary of key factors accounting for this change is provided on page A-5. As reflected in this Summary of Findings and Conclusions summary, while improved revenues and contained ' costs play a modest role, the main reason for this To borrow from Charles Dickens, this mid-year improvement is the higher-than-projected General budget review is the"tale of two reports:" Fund balance at the beginning of the fiscal year. The reasons for this were discussed in detail when 1. How are we doing compared with the 2002-03 we presented the Annual Financial Report Plan for Financial Plan Supplement, which the Council 2001-02 to the Council in December.2002. adopted in June 2002? (Until it is formally amended as part of the mid-year Compared with the More Recent Forecast. The budget review, this is still mid-year budget review builds on the results of the our `official" starting five-year forecast; however, it also reflects changes The General Fund's point for comparison.) since then based on updated information. As a financial condition is result, it projects a different—and lower—estimate more favorable than presented in the adopted 2. How are we doing for the 2002-03 ending General Fund balance than 2002-03 Budget, but less compared with the more the forecast. This means that while the projected favorable than projected recent five-year General ending fund balance for 2002-03 of$7.4 million is in the more recent Five- Fund forecast, which was favorable compared with the adopted budget, it is Year.Fiscal Forecast presented to the Council less favorable compared with the more recent five- in December 2002? year forecast. The following summarizes the answers to the After adjusting for mid-year budget requests and different questions raised in these two stories: other revenue and.expenditure changes, our revised ending fund balance estimate of $7.4 million is Compared with the Adopted Budget. Overall, our $600,000 lower than the $8.0 million balance updated projections compare favorably with those projected in the five-year fiscal forecast. This is due A-1 Transmittal Memorandum lam` to three key factors, which were foreshadowed as FINANCIAL CONDITION SUMMARY potential problems in the forecast: 1. Supplemental appropriations, including mid- Beginning Fund Balance I year budget requests with a net fiscal impact of $271,100($311,100 before offsetting funding of The beginning General Fund balance (net of $40,000) and City funding of $90,500 for the encumbrances and carryovers) is $688,400 greater Orcutt Area EIR. than projected in the 2002-03 Financial Plan Supplement. As comprehensively discussed in the 2. State budget cuts that are likely to occur in Annual Financial Report for 2001-02, which was 2002-03 ($125,000). presented to the Council in December 2002,this was solely due to improved.revenues over projections. 3. And a combination of revised revenue and expenditure estimates based on more recent Revenues trend information. These include downward revisions in VLF ($39,300) and business tax Included in Section B of this report is a summary of revenues ($36,100); and increased General Fund revenues by fund and major source that provides support for the Creek and Flood Protection Fund actual results for 2001-02 along with a comparison ($33,000) and Golf Fund ($32,000) due to of the 2002-03 revenue projections with original reduced revenues in these funds. budget estimates. The following summarizes key f General Fund revenue variances: General Fund Focus Property Tax. We have increased this projection by ' This mid-year budget review primarily focuses on $221,700, which is consistent with the forecast and programs and projects financed through the General based on property tax revenue estimates provided by Fund. Consistent with the City's policy of annually the County and likely increases from supplemental I reviewing our enterprise fund rates, a assessments. comprehensive analysis will be presented on May 29, 2003 addressing rate and revenue issues in the Transient Occupancy Tax (TOT). We have I water, sewer,parking, transit and golf funds: retained our original revenue projection for a 5% increase over the prior year. However, if year-to- Mid-Year Budget Requests date trends continue as shown in the most recent TOT Monthly Report (page D-3), we will need to A limited number of mid-year budget requests are revise this downward in the Preliminary 2003-05 presented in this review, which are discussed in Financial Plan. ' greater detail below. Given our current fiscal outlook for 2003-05, we have only proposed mid-year budget Business Taxes. While unchanged from the 2002- requests that need to be approved now in order to 03 Financial Plan Supplement, the current estimate meet timing requirements or adequately fund current is $36,000 less than the five-year forecast programs through the end of the fiscal year: no funding for"new"initiatives is recommended. Franchise Fees. Consistent with the five-year fiscal forecast, this revenue source is estimated to increase Totaling $311,100 (with direct offsetting revenues of by 4% over the prior year. $40,000, for a net cost of $271,100) the most significant of these are completing the Housing Subventions and Grants. The overall revised Element update ($140,100) and the Airport/Margarita projections for subventions and grants reflect an Area Specific Plans ($80,000, with a "net" cost of increase in revenues of $54,500 in 2002-03. This $40,000 due to property owner contributions). consists of: ' 1. An increase of$74,100 in motor vehicle in-lieu (VLF) revenues. (However, based on year-to- A-2 Transmittal Memorandum date trends, this is$39,300 less than projected in carryovers, and Council approved budget the forecast.) amendments. There are no mid-year CIP requests. 2. Reduction of$70,000 in estimated SB 90 State Interfund Transactions reimbursements. The State has placed a hold on this funding source. This portion of Section B reflects actual interfund 3. .Reduction of$55,000 in Police training (POST) transfers for 2001-02 along with the original budget reimbursements. The State plans no further and revisions for 2002-03. The revised operating reimbursements after March 2003. transfers are generally driven by other changes in the mid-year budget review. The reimbursement 4. Increase of $105,400 in unanticipated booking transfers are based on the 2001-03 Cost Allocation fee reimbursements already received. Plan. ' (However, we do not project receiving this revenue source in the future; the only reason we Projected Fund Balances/Working Capital most likely did not lose all or some of this ' revenue in 2002-03 is that payment in full has Based on the revised revenue projections and already been received.) expenditures summaries, this part of Section B includes a summary of projected changes in Service Charges. An increase of $454,900 is financial position for each of the City's operating primarily due to the following: funds. As with the revenue projections, the changes in financial position schedules include the actual I 1. Projections for planning and building fees have fund balances/working capital for 2001-02 and the been increased by $378,700 based upon current original budget and projections for 2002-03. trends and known projects in the pipeline. MID YEAR BUDGET REQUESTS 2. Projections for Fire Services have increased by -- $32,000 based on additional funding from Cal ti ` Poly for excess service calls. On the other hand, As noted previously, we have only proposed mid-year based on prior year revenues and current trends, budget requests that need to be approved now in order revenue from accident report copies in the to meet timing requirements or adequately fund Police Department has been reduced by current programs through the end of the fiscal year. ' $12,300. Supporting documentation that fully justifies the 3. An increase of $56,500 in anticipated fee from need for these adjustments is provided in Section C Parks & Recreation programs, based on prior and summarized below: revenues. I. Booking Fees: $45,000. Increased arrest Operating Programs activity, which is likely to continue, has increased booking fee expenses and will cost Section B also includes an overview of changes to $45,000 for the remainder of 2002-03. ' the operating program budgets. Organized by 2 Airport and Margarita Area Specific Plans: function and program, the schedule includes the $g0,000. Completing the EIR and updating the original budget, encumbrances and budget changes infrastructure financing plans for the Airport previously approved by Council. These summaries also reflect the mid-year requests that are being Area and Margarita Area Specific Plans will cost $80,000. However, there are outside submitted to Council for consideration as discussed later in this report. contributions of$40,000,resulting in a net fiscal impact of$40,000. I Capital Improvement Plan(CIP) 3. Housing Element Update: $1409100. This part of Section B reflects the original CIP Preparing an Environmental Impact Report for the City's Housing Element update, which must budgets for 2002-03 by fund, encumbrances and be completed by December 31, 2003, will cost I A-3 Transmittal Memorandum $120,000; and hiring a consultant to prepare a foreshadowed in the forecast. Moreover, based on ' financial analysis of the impacts to the City by recent trends in TOT revenues, insurance costs and implementing changes proposed in the draft PERS rates, combined with the volatile economic, Housing Element update will cost $35,000. State budget and foreign policy situation ahead of However, offsetting reductions in other areas of us, we are likely to face even greater fiscal $14,900 reduce the net cost to$140,100. challenges than reflected in the five-year forecast when we present the Preliminary 2003-05 Financial 4. Building Plan Review Contract Services: Plan to the Council in May y 2003. $25,000. Continuing contract services to meet the workload for plan review of building permit Preparing for 2003-05: Actions Already Taken ' applications will cost $25,000 for the remainder of the 2002-03. This additional expense is more In accordance with the "action steps" set forth.in the than offset by increased revenue projections for City's Fiscal Health Contingency Plan, we have 2002-03 of$181,000. already taken a number of actions in positioning us for 2003-05, including: 5. Property Insurance Premiums. Maintaining the City's property insurance coverage will cost 1. Reducing the 2002-03 Budget by$1.8 million. an additional $21,000 for the increased insurance premium 2. Limiting travel and training. 3. And implementing a hiring "chill" for the past i Other Budget Adjustments year, which is now a total "freeze" pending adoption of the 2003-05 Financial Plan, when ' 1. Due to reduced estimates for Zone 9 revenues of our longer-term budget-balancing strategy will $33,000, we recommend increasing the General be in place. Fund's support to the Creek and Flood Protection Fund to offset this loss, since all of Because of this hiring freeze, we now have 19 the Fund's budgeted programs and projects.are regular position vacancies, which should grow to 26 already underway. by June based on expected retirements. While we will recommend that any position reductions (if 2. Based on actual Golf Fund results in 2001-02, needed) be based on service priorities—and not the we have reduced revenue estimates in the Golf serendipity of vacancies—the fact is that freezing Fund by $32,000. We recommend increasing vacant positions increases our flexibility, and ' the General Fund's support to the Golf Fund decreases the likelihood of actual lay-offs. according (from$213,800 to$245,800)to offset this. SUNE1 ARY 3. As part of the Governor's budget balancing solution, State support for local street The mid-year budget review document for 2002-03 maintenance is likely to be cut by $42,000(from has been prepared in order to present the Council $92,000 to $50,000). We recommend reducing with a formal review ' of the City's financial the paving budget in the Capital Outlay Fund condition six months into the second year of our ' accordingly, rather than backfilling the loss with two-year budget process. The Department of General Fund revenues. Finance and Department Heads will be prepared to respond to any questions the Council may have ' PROSPECTS FOR THE FUTURE regarding this report at their February 18, 2003 f ! meeting. If you have any questions in the interim, or require additional information, please do not ' While revised General Fund estimates, including the hesitate to contact us. proposed mid-year budget requests, are favorable compared with the original 2002-03 Financial Plan Supplement, they are less favorable than the more recent five-year forecast; due largely to concerns A-4 ' ' GENERAL FUND FIN NCIAL CONDITIONSUMMARY ' Comparison of Mid-Year Budget Projections with Those Initially Presented in the 2002-03 Financial Plan Supplement ' variances WHERE WE'RE UP One-Time On-Going Total Revenues and Sources ' ■ Beginning Fund Balance(Net of Carryovers and Encumbrances) 688,400 688,400 ■ Property Tax 221,700 221,700 ' ■ Utility Users Tax 26,900 26,900 ■ Franchise Fees 91,600 91,600 ■ Motor Vehicle In-Lieu 74,100 74,100 ' ■ Booking Fee Reimbursement 105,400 105,400 ■ Cal Poly Fire Services 32,000 32,000 ' ■ Development Review Fees 157,700 130,500 288,200 ■ Recreation Fees 56,500 56,500 ■ Other"Ups and Downs" 4,300 4,300 ' WHERE WE'RE DOWN 951,500 637,600 1,589,100 ' Revenues and Sources ■ SB 90 Reimbursements (70,000) (70,000) ' ■ Police Training(POST) (55,000) (55,000) ■ Police Accident Reports (12,300) (12,300) ■ Reduction in Zone 9 Reimbursements(Increase in Support (33,000) (33,000) ' to the Creek and Flood Protection Fund) ■ Reduced Estimate for Golf Fund Reveneus(Increase in (32,000) (32,000) ' Support to the Golf Fund) Expenditures and Uses I ■ Mid-Year Budget Requests (245,100) (66,000) (311,100) ■ Orcun Area Specific Plan (90,500) (90,500) (335,600) (268,300) (603,900) ' NET CHANGE F $615,900 $369,300 $985,200 ' Ending Fund Balance-Jane 30, 2003 _ $7,379,800 ' Percent of Operating Expenditures 23% I A-5 1 Section B FINANCIAL CONDITION SUMMARIES 1 I I I !!!!111 111111111 1 m mymmmam-- SUMMARY BY FUND 2001-02 2002.03 Original Revised Actual Budget Projection Variance GOVERNMENTAL FUNDS General Fund 34,834,600 33,821,500 34,697,200 875,700 Special Revenue Funds 2,677,300 2,353,400 3,425,700 1,072,300 Capital Project Funds 7,799,400 2,225,000 9,995,300 7,770,300 Total Governmental Funds 45,311,300 38,399,900 48,118,200 9,718,300 ENTERPRISE FUNDS Water Fund 10,088,200 10,252,400 10,252,400 Sewer Fund 8,327,400 8,100,800 8,100,800 Creek and Flood Protection Fund 385,800 67,000 (318,800) Parking Fund 2,879,800 3,612,800 3,612,800 Transit Fund 3,118,700 3,430,900 4,588,000 1,157,100 Golf Fund 272,600 318,700 286,700 (32,000) Whale Rock Reservoir Fund 785,300 790,600 790,600 Total Enterprise Funds 25,472,000 26,892,000 27,698,300 806,300 TOTAL $70,783,300 $65,291,900 $75,816,500 $10,524,600 1 1 1 ' B-1 REVENUESIBY MAJOR CATEGORY AND SOURCE GENERAL FUND ' 2001-02 2002.03 ' Original Revised Actual Budget Projection Variance Tax Revenues ' Sales&use tax t General 10,099,200 10,368,800 10,402,200 33,400 Public safety(Proposition 172) 217,300 243,200 223,800 (19,400) Property tax 5,219,000 5,362,600 5584,300 221,700 Transient occupancy tax 3,790,300 3,992,700 3,979,800 (12,900) ' Utility users tax 3532,300 3,646,700 3,673,600 26,900 Franchise fees 1,388,100 1,352,000 1,443,600 91,600 Business tax certificates 1,355,900 1,387,600 1,387,600 ' Real property transfer tax 205,200 175,000 175,000 Total Tax Revenues 25,807,300 26,528,600 26,869,900 341,300 Fines and Forfeitures ' Vehicle code fines 216,900 205,000 205,000 Other fines and forfeitures 104,800 99,000 99,000 ' Total Fines and Forfeitures 321,700 304,000 304,000 Investment and Property Revenues ' Investment earnings 700,800 600,000 600,000 Rents&concessions 41,700 34,600 34,600 Total Investment and Property 742,500 634,600 634,600 ' Subventions and Grants Motor vehicle in-lieu 2,467,400 2,502,000 2,576,100 74,100 ' Homeowners&other property taxes in-li 81,800 80,000 80,000 Other in-lieu taxes 44,600 46,000 46,000 SB 90 reimbursements 70,000 (70,000) , Police training(POST) 48,000 80,000 25,000 (55,000) Traffic Safety grant 131,400 Local Law Enforcement 100,000 100,000 100,000 Booking fee reimbursement 102,200 105,400 105,400 ' Other State&Federal grants 60,500 5,000 5,000 Total Subventions and Grants 3,035,9(10 2,883,000 2,937,500 54,500 Service Charges ' Public Safety Police Services ' Accident reports 3,100 17,300 5,000 (12,300) Alarm permits 114,400 81,600 81,600 DUI cost recovery 10,000 6,600 6,600 ' Second response fees 1,600 5,100 5,100 Booking fee reimbursements 18,500 17,300 17,300 Other police services 23,100 56,100 56,100 ' 170,700 184,000 171,700 (12,300) B-2 ' REVENUES BY O . CATEGORY AND SOURCE ' GENERAL FUND ' 200142 2002-03 Original Revised Actual Budget Projection Variance Fire Services Cal Poly fire services 168,000 135,000 167,000 32,000 ' Medical emergency recovery 120,300 122,400 122,400 Fire-safety/haz mat permits 41,800 102,300 102,300 Other fire services 422,900 102,000 102,000 ' 753,000 461,700 493,700 32,000 Transportation Maintenance of State highways 23,700 25,000 25,000 ' Zone 9 reimbursements 83,800 107,500 25,000 25,000 Development Review ' Planning&zoning fees 456,800 334,200 531,500 197,300 Construction plan check&inspection: 1,512,000 907,100 1,088,500 181,400 Infrastructure plan check&inspection 335,000 214,900 214,900 ' Encroachment permits 58,100 67,900 67,900 Fire plan check&inspections 263,500 143,300 143,300 2,625,400 1,667,400 2,046,100 378,700 ' Leisure,Cultural&Social Services Adult athletic fees 107,200 113,500 113,500 Youth athletic fees 21,900 41,600 41,600 ' Instruction fees 85,700 95,700 95,700 Special event fees 64,600 66,000 66,000 Rental&use fees 84,800 64,300 64,300 Children services 485,000 438,200 494,700 56,500 ' Teens&seniors 23,700 23,500 23,500 Aquatics 141,900 142,400 142,400 Other recreation revenues 3,500 3,500 ' 1,014,800 988,700 1,045,200 56,500 General Government Sales of publications 20,300 22,000 22,000 ' CCCJPA reimbursements 50,000 52,500 52,500 Other service charges 5,800 20,000 20,000 76,100 94,500 94,500 ' Total Service Charges 4,747,500 3,421,300 3,876,200 454,900 ' Other Revenues Insurance refunds 137,400 Other revenues 42,300 50,000 75,000 25,000 ' Total Other Revenues 179,700 50,000 75,000 25,000 Total General Fund $34,834,600 $33,821,500 $34,697,200 $875,700 ' B-3 REVENUES BY ZO. CATEGORY AND SOURCE SPECIAL REVENUE FUNDS 2001-02 200243 , Original Revised Actual Budget Projection Variance Downtown Association Fund Investment and Property Revenues 6,200 5,000 5,000 Service Charges 402,200 348,500 348,500 , Total Downtown Association Fund 408,400 353,500 353,500 Community Development Block Grant Fund ' Subventions and Grants 1,176,000 996,200 1,845,800 849,600 Gas Tax Fund ' Subventions and Grants 980,900 959,800 917,800 (42,000) Transportation Development Act Fund ' Subventions and Grants 21,200 19,900 19,900 Law Enforcement Grant Fund , Investment and Property Revenues 20,700 14,000 14,000 Subventions and Grants 53,400 264,700 Service Charges 16,700 10,000 10,000 t Total Law Enforcement Grant Fund 90,800 24,000 288,700 264,700 Total Special Revenue Funds 2,677,300 2,353,400 3,425,700 1,072,300 ' B-4 , CAPITAL PROJECT FUNDS ' 2001-02 2002-03 Original Revised Actual Budget projection Variance 1 Capital Outlay Fund Subventions and Grants ' State of California Traffic Safety grant SLTPP/STP grant 453,000 453,000 ' Proposition 116 STP/SHA-RRTC 1,686,100 1,650,600 1,650,600 State Public Safety CLETEP ' Other State grants 414,300 414,300 Federal Government Highway and bridge rehabilitation and ' replacement(HBRR) 2,022,500 2,626,100 2,626,100 Transportation enhancement(TEA) 276,000 1,169,100 893,100 Other Federal grants 69,300 69,300 ' Service Charges Zone 9 reimbursements Other Revenues ' Sale of Surplus Property 490,500 490,500 Other Revenue Contributions 113,800 111,200 111,200 Total Capital Outlay Fund 3,822,400 276,000 6,984,100 6,708,100 ' Parkland Development Fund Investment and Property Revenues 21,900 20,000 20,000 ' Subventions and Grants 127,500 403,500 276,000 Service Charges Park in-lieu fees 493,600 5,000 170,900 165,900 ' Dwelling unit charge 4,900 5,000 5,000 Other Revenue Total Parkland Development Fund 520,400 157400 599,400 441,900 ' Transportation Impact Fee Fund Investment and Property Revenues 39,200 13,500 13,500 ' Subventions and Grants 664,000 664,000 Service Charges 638,200 392,000 410,000 18,000 Contributions 600,000 600,000 ' Total Transportation Impact Fee Fund 677,400 1,669,500 1,687,500 18,000 Fleet Replacement Fund ' Investment and Property Revenues 37,300 60,000 60,000 Other Revenues Sale of surplus property 96,600 40,000 40,000 ITotal Fleet Replacement Fund 133,900 100,000 100,000 I B-5 REVENUES BY O . CATEGORY 1 CAPITAL PROJECT FUNDS ' 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance Open Space Protection Fund ' Investment and Property Revenues 24,400 14,000 14,000 Subventions and Grants 1,921,300 525,000 525,000 ' Service Charges 58,800 Other Revenue 105,800 Total Open Space Protection Fund 2,110,300 149000 539,000 525,000 ' Airport Area Impact Fee Fund Investment and Property Revenues 10,900 5,000 5,000 ' Service Charges 39,200 27,300 27,300 Total Airport Area Impact Fee Fund 50,100 5,000 32,300 27,300 Affordable Housing Fund ' Investment and Property Revenues 20,000 3,000 3,000 Service Charges 464,900 50,000 50,000 ' Total Affordable Housing Fund 484,900 3,000 53,000 50,000 Total Capital Project Funds 7,799,400 2,225,000 9,995,300 7,770,300 ' B-6 I 1 REVENUES BY O . CATEGORY ENTERPRISE FUNDS ' 2001-02 2002-03 original Revised Actual Budget Projection variance Water Fund Investment and Property Revenues 504,300 365,800 365,800 ' Subventions&Grants 5,000 Service Charges 9,265,600 9,757,200 9,757,200 Other Revenues 313,300 129,400 129,400 ' Total Water Fund 10,088,200 10,252,400 10,252,400 Sewer Fund ' Investment and Property Revenues 173,600 159,200 159,200 Subventions&Grants Service Charges 8,153,800 7,941,600 7,941,600 ' Total Sewer Fund 8,327,400 81100,800 8,100,800 Creek and Flood Protection Fund Investment and Property Revenues ' Subventions&Grants 100,000 67,000 (33,000) Service Charges 285,800 (285,800) Total Creek and Flood Protection Fun, 385,800 67,000 (318,800) ' Parking Fund Fines and Forfeitures 635,700 591,000 591,000 ' Investment and Property Revenues 237,700 199,100 199,100 Service Charges 2,006,400 2,822,700 2,822,700 Total Parking Fund 2,8799800 3,612,800 3,612,800 ' Transit Fund Investment and Property Revenues 2,600 2,600 Subventions and Grants 2,748,200 3,055,900 4,208,100 1,152,200 ' Service Charges 370,500 370,400 370,400 Other Revenues 2,000 6,900 4,900 Total Transit Fund 3,118,700 3,430,900 4,588,000 1,157,100 ' Golf Fund Investment and Property Revenues 1,600 1,000 1,000 Service Charges 271,000 317,700 285,700 (32,000) Total Golf Fund 272,600 318,700 286,700 (32,000) Whale Rock Commission I Investment and Property Revenues 30,100 22,800 22,800 Subventions and Grants Service Charges 754,100 767,800 767,800 ' Other Revenues 1,100 Total Whale Rock Commission Fund 785,300 790,600 790,600 Total Enterprise&Agency Funds $25,472,000 $26,892,000 $27,698,300 $806,300 B-7 • • - • MIT SUMMARY BY FUNCTION ' 2002.03 Changes ' Original Carryovers/ Other Mid-Year Revised Budget Encumbrances Changes Requests Budget Public Safety 14,852,100 141,800 (25,200) 45,000 15,013,700 ' Public Utilities 8,549,700 509,400 (129,500) 8,929,600 Transportation 5,146,900 66,300 (7,500) 5,205,700 Leisure,Cultural&Social Services 5,524,300 205,300 (35,800) 5,693,800 ' Community Development 4,397,600 231,000 206,000 245,100 5,079,700 General Government 7,473,800 641,000 18,100 21,000 8,153,900 Total 45,944,400 1,794,800 269100 311,100 48,076,400 SUMMARY OF NET BUDGET CHANGES TO-DATE: , Council/CAO General Other ' Approval Date Fund Funds Total Increase number of paramedics 7/8/02 7,900 7,900 ' Damaged has stop* 8/15/02 4,900 4,900 Creek&Flood Protection support 8/20/02 (163,800) 100,200 (63,600) Bus Yard HVAC improvements 9/3/02 (6,100) (6,100) ' Traffic safety grant from Kiwanis* 9/25/02 500 500 Law Enforcement Block Grant match 10/15/02 (3,400) (3,400) Advertising grant* 10/27/02 1,200 1,200 , Maintenance Marsh Street garage restrooms 11/7/02 40,100 40,100 walmart Grants* 11/11/02 2,000 2,000 Valve replacement CIP 12/5/02 (52,400) (52,400) Police protective clothing grant* 12/15/02 700 700 , Sewer lateral CIP 12/17/02 (75,000) (75,000) Sinsheimer Park lot improvement project 10/23& 12/16/02 (8,400) (8,400) Other miscellaneous adjustments (3,300) (3,300) ' Orcutt Area specific plan* 2/40/3 181,000 181,000 Total $14,400 $11,700 $26,100 * There are revenue offsets for these costs-no net fiscal impact. ' B-8 ' PUBLIC SAFETY ' 2002-0 cnang� Original Carryovers/ Other Mid-Year Revised Budget Encumbrances Changes Requests Budget POLICE PROTECTION Administration 1,137,100 110,600 (44,100) 45,000 1,248,600 ' Neighborhood/Crime Prevent Services 184,600 184,600 Support Services 1,431,600 2,700 4,300 1,438,600 Investigative Services 1,182,300 (8,600) 1,173,700 ' Traffic Safety 616,000 300 1,500 617,800 Patrol Services 4,364,100 700 4,364,800 Total Police Protection 8,915,700 113,600 (46,200) 45,000 9,0289100 FIRE AND ENVIRONMENTAL SAFETY Administration 454,500 1,200 455,700 Emergency Response 4,754,000 8,000 7,300 4,769,300 ' Hazard Prevention 403,400 (100) 403,300 Training 67,000 18,600 85,600 Technical Services 92,700 1,600 100 94,400 ' Radio Communications Services 155,300 12,500 167,800 Disaster Preparedness 9,500 9,500 Total Fire and Environmental Safety 5,936,400 28,200 21,000 5,985,600 TOTAL PUBLIC SAFETY _ 14,852,100 1419800 (25,200) 45,000 15,013,700 I I ' B-9 OPERATING PROGRAMS PUBLIC UT LMES ' 2002-03 Changes ' Original Carryovers) Other Md-Year Revised Budget Encumbrances Changes Requests Budget WATER SERVICE Water Source of Supply 840,500 25,800 866,300 Water Treatment 1,038,000 8,700 1,046,700 ' Water Distribution 728,100 728,100 Water Customer Service 249,500 249,500 Utilities Conservation Office 346,000 26,800 372,800 Water Administration/Engineering 725,200 97,100 (300) 822,000 Total Water Service 3,927,300 158,400 (300) 4,085,400 SEWER SERVICE Wastewater Collection 624,300 624,300 Wastewater Pretreatment 203,100 203,100 Water Reclamation Facility 2,644,000 2,644,000 ' Wastewater Administration/Engineering 479,700 281,600 (76,800) 684,500 Total Sewer Service 3,951,100 281,600 (76,800) 4,155,900 WHALE ROCK RESERVOIR ' Reservoir Operations 671,300 69,400 (52,400) 688,300 ' TOTAL PUBLIC UTILITIES 8449,700 509,400 (129,500) - 8,929,600 B-10 ' OPERATING PROGRMS ' TRANSPORTATION ' 2002.03 Changes Original Carryovers/ Other Mid-Year Revised Budget Encumbrances chaum Requests Budget ' TRANSPORTATION MANAGEMENT Transportation Planning&Eng 420,500 1,500 (1,400) 420,600 STREETS Pavement Maintenance 806,600 (154,000) 652,600 ' General:Sidewalks,Signs,Markings 485,100 485,700 Traffic Signals&Street Lights 383,300 36,200 4,200 423,700 Total Streets 1,675,600 36,200 (149,800) 1,562,000 ' CREEK AND FLOOD PROTECTION Operations&Maintenance* 251,800 105,700 357,500 ' PARKING Operation,Maintenance& Enforcement 957,600 15,000 39,200 1,011,800 ' MUNICIPAL TRANSIT SYSTEM Operations and Maintenance 1,841,400 13,600 (1,200) 1,853,800 ' TOTAL TRANSPORTATION 5,146,900 66,300 (79500) - 5,205,700 ' * The Creek and Flood Protection enterprise fund was previously accounted for in the General Fund. I I I I B-11 OPERATING PROGRAMS LEISURE, CULTURAL& SOCIAL SERVICES 2002.03 Changes ' Original Carryovers/ Other Mid-Year Revised Budget Encumbrances Changes Requests Budget PARKS AND RECREATION ' Recreation Programs Recreation Administration 497,100 59,800 (500) 556,400 Aquatics 278,200 278,200 Day Care 726,000 (500) 725,500 Classes&Adult Athletics 322,500 1,200 323,700 ' Major Events/Facilities 120,700 120,700 Youth Sports&Special Events 239,300 14,700 254,000 Teen&Senior Services 223,800 (500) 223,300 ' Park Ranger 151,400 151,400 Total recreation programs 2,559,000 2,633,200 Maintenance Services , Landscape and Park Maintenance 1,378,500 32,000 (31,800) 1,378,700 Swim Center Maintenance 293,300 7,200 300,500 Tree Maintenance 270,700 270,700 Total maintenance services 1,942,500 1,949,900 ' Golf Course 368,300 (2,500) 365,800 Total Parks and Recreation 4,869,800 114,900 (35,800) 4,948,900 CULTURAL SERVICES ' Cultural Activities 339,400 4,400 343,800 SOCIAL SERVICES Human Relations 127,100 1,500 128,600 Housing Assistance 188,000 84,500 272,500 ' Total Social Services 315,100 86,000 401,100 TOTAL LEISURE,CULTURAL ' &SOCIAL SERVICES 5,524,300 205,300 (35,800) - 5,693,800 1 i B-12 ' I W . U: COMMUNITY DEVELOPMENT M2-0 ChauW Original Carryovere Other Mid-Year Revised Budget Encnmbrances changes Requests Budget ' PLANNING Commissions&Committees 49,700 49,700 ' Community Development Administratioi 437,700 38,900 (26,000) 450,600 Development Review 462,300 69,400 531,700 Long Range Planning 353,200 44,800 181,000 220,100 799,100 ' Total Planning 1,302,900 153,100 1559000 2209100 1,831,100 CONSTRUCTION REGULATION Building and Safety 544,300 23,900 25,800 25,000 619,000 CEP Project Engineering 1,136,500 6,600 1,143,100 Engineering Development Review 255,400 (1,400) 254,000 Total Construction Regulation 1,936400 23,900 31,000 25,000 2,016,100 NATURAL RESOURCES PROTECTION Natural Resources Protection 294,900 35,500 330,400 ECONOMIC HEALTH Economic Development 164,100 20,000 184,100 ' Community Promotion 353,800 14,500 368,300 Downtown Association 345,700 4,000 349,700 Total Economic Health 863,600 18,500 20,000 902,100 TOTAL COMMUNITY DEVELOPMENT 4,3979600 231,000 206,000 245,100 5,079,700 t ' B-13 OPERATING PROGR IVIS GENERAL GOVERNMENT ' 2002-03 Changes ' Original Carryovers/ Other Md-Year Revised Budget Encumbrances Changes Requests Budget LEGISLATION AND POLICY ' City Council 161,000 (9,800) 151,200 GENERAL ADMINISTRATION ' City Administration 509,700 27,800 (11,400) 526,100 Public Works Administration 609,000 209,100 (28,800) 789,300 Total General Administration 1,118,700 236,900 (40400) 1,315,400 ' LEGAL SERVICES City Attorney 3529100 352,100 ' CITY CLERK SERVICES Administration&Records 395,700 75,100 470,800 ' Elections 41,400 41,400 Total City Clerk Services 437,100 75,100 512,200 ORGANIZATIONAL SUPPORT SERVICES , Human Resources Administration 607,200 29,800 637,000 Risk Management 882,700 21,000 903,700 ' Finance Administration 235,200 76,600 (3,400) 308,400 Accounting 512,200 19,700 531,900 Revenue Management 462,100 32,100 494,200 ' Support Services 357,600 26,700 (8,600) 375,700 Information Systems Management 784,800 140,900 925,700 Geodata Services 268,600 8,500 277,100 ' Total Organizational Services 4,110,400 334,300 (12,000) 21,000 4,453,700 BUILDINGS AND EQUIPMENT Building Maintenance 735,400 4,500 60,300 800,200 ' Fleet Management 559,100 10,000 569,100 Total Buildings and Fleet 1,294,500 4,500 70,300 1,369,300 , TOTAL GENERAL GOVERNMENT 7,473,800 641,000 18,100 21,000 8,153,900 B-14 , 2002-03 Original Encumbrances/ Other Budget Mid-Year ' Budget Carryovers Changes Adjustments Revised Capital Outlay 7,586,600 15,845,200 364,000 (42,000) 23,753,800 1 Parkland Development 413,000 577,500 490,000 1,480,500 Fleet Replacement 737,500 69,300 46,000 852,800 CDBG 486,200 720,800 1,207,000 Law Enforcement Block Grant 399,600 33,800 433,400 Transportation Impact Fee 1,877,000 657,500 2,534,500 Open Space Protection 200,000 552,200 752,200 ' Airport Area Impact Fee Water 1,995,000 15,483,600 17,478,600 Sewer 1,135,000 2,487,700 75,000 3,697,700 1 Creek and Flood Protection 286,000 (31,100) 254,900 Parking 8,906,400 3,104,800 12,011,200 Transit 1,089,000 . 1,152,200 6,100 2,247,300 Golf 45,000 40,500 85,500 Whale Rock 53,000 570,800 111,000 734,800 Total $24,809,700 $41,661,700 ,$1,094,800 ($42,000) $67,524,200 SUMMARY OF NET BUDGET ADJUSTMENTS TO-DATE ' Council/CAO Revenue Net Approval Date Total Offset Impact ' Capital Outlay Fund(General Fund) Battery back for traffic signals 7/2/02 25,200 25,200 Correct public art for Santa Rosa Park 8/13/02 18,500 18,500 ' Use CIP reserve for Creek&Flood Protection 8/20/02 (147,400) (147,400) Sculpture at RR Square 8/29/02 17,000 17,000 Recreation Center remodel-ZBerg Harris grant 9/3/02 125,300 125,300 Sincheimer Park parking improvement 10/23 & 12/16/02 8,400 8,400 ' Damon Garcia Sports Fields 10/15/02 250,000 250,000 Donations for Puck 12/3/02 58,000 58,000 Johnson Avenue seismic retrofit-grant funded 12/17/02 9,000 9,000 ' 364,000 484,500 (120,500) 1 B-15 CAPITAL ° ' •VEMrNT PLAN - ALL FUNDS COMYNED CouncWCAO Revenue Net Approval Date Total Offset Impact Parkland Development Fund _ 1 Damon Garcia Sports Fields 10/15/02 490,000 490,000 Law Enforcement Block Grant Fund I I G Grant 10/15/02 30,400 30,400 General Fund grant match 10/15/02 3;400 3,400 33,800 33,800 Fleet Replacement Fund Replace vehicle#9017 7%2/02 26,000 26,000 Replace vehicle#9708 11/19/02 20,000 20,000 46,000 46,000 Sewer Fund Sewer lateral replacements 12/17/02 75,000 75,000 1 Creek&Flood Protection Fund Tank Farm silt removal-rescind fee 8/20/02 (31,100) (31,100) Transit 1 Bus Yazd HVAC improvements-from operating 9/3/02 6,100 6,100 Whale Rock Surge tanks 10/8/02 11,000 11,000 Valve replacement 12/5/02 100,000 52,400 47,600 ' 111,000 52,400 58,600 Total Adjustments $1,094,800 $576,800 $518,000 B-16 MIUMN ' OPERATING TRANSFERS ' 2001-02 2002-03 Original Actual Budget Revised Variance ' General Fund Operating Transfers In ' Gas Tax Fund 869,800 867,800 867,800 TDA Fund 21,200 19,900 19,900 Law Enforcement Block Grant Fund 43,700 ' Transportation Impact Fee Fund Total operating transfers in 934,700 887,700 887,700 Operating Transfers Out ' Downtown Association Fund Law Enforcement Block Grant Fund (4,900) (3,400) (3,400) Capital Outlay Fund (4,574,400) (2,602,800) (2,482,700) 120,100 ' Open Space Protection Fund (250,000) (200,000) (200,000) Fleet Replacement Fund (461,700) (486,700) (486,700) Debt Service Fund (1,715,200) (1,697,900) (1,699,500) (1,600) ' Creek and Flood Protection Fund (290,700) (637,600) (346,900) Golf Fund (221,700) (216,300) (245,800) (29,500) Total operating transfers out (7,227,900) (5,494,400) (5,755,700) (261,300) Total Operating Transfers (6,293,200) (4,606,700) (4,868,000) (261,300) Downtown Association Fund Operating Transfer In ' General Fund Gas Tax Fund ' Operating Transfer Out General Fund (869,800) (867,800) (867,800) Capital Outlay Fund (111,100) (92,000) (50,000) 42,000 ' Total operating transfer out (980,900) (959,800) (9179800) 42,000 Transportation Development Act Fund ' Operating Transfer Out General Fund (21,200) (19,900) (19,900) ' Law Enforcement Grant Fund Operating Transfer In General Fund 4,900 3,400 3,400 ' Operating Transfer Out General Fund (43,700) Total operating transfers (389800) 3,400 3,400 ' Capital Outlay Fund Operating Transfer In ' General Fund 4,574,400 2,602,800 2,482,700 (120,100) Gas Tax Fund 111,100 92,000 50,000 (42,000) Total operating transfers in 4,685,500 2,694,800 2,532,700 (1629100) ' B-17 ' INTERFUND TRANSACTIONS ' OPERATING TRANSFERS ' 2001.02 2002-03 Original Actual Budget Revised Variance ' Open Space Protection Fund Operating Transfer In IGeneral Fund 250,000 200,000 200,000 Transportation Impact Fee Fund ' Operating Transfer Out General fund ' Fleet Replacement Fund Operating Transfers In General Fund 461,700 486,700 486,700 ' Debt Service Fund Operating Transfer In General Fund 1,715,200 1,697,900 1,699,500 1,600 Creek and Flood Protection Fund Operating Transfer In ' General Fund 290,700 637,600 346,900 Golf Course Fund ' Operating Transfer In General fund 221,700 216,300 245,800 29,500 ' NET OPERATING TRANSFERS $ - $ $ $ I I I B-18 INTERFUND TRANSACTIONS REIMBURSEMENT TRANSFERS 2001-02 2002-03 ' Original Actual Budget Revised Variance General Fund (2,895,900) (3,045,400) (3,089,700) (44,300) Community Development Block Grant Fund 28,200 44,300 44,300 Enterprise and Agency Funds Water 1,104,500 1,137,600 1,137,600 Sewer 986,400 969,000 1,015,500 46,500 Creek and Flood Protection 138,700 92200 (46,500) Parking 313,200 322,600 322,600 Transit 270,800 278,900 278,900 Golf 113,700 117,100 117,100 Whale Rock Commission 79,100 81,500 81,500 Total Enterprise and Agency Funds 2,867,700 3,045,400 3,045,400 NET REIMBURSEMENT TRANSFERS $ - $ $ - $ I I I I 1 B-19 ' i ALL FUNDS COMBINI D ' 2001-02 2002-03 Original Revised Actual Budget Pro'ection variance ' Revenues Tax Revenues 25,807,300 26,528,600 26,869,900 341,300 Fines and Forfeitures 957,400 895,000 895,000 ' Investment and Property Revenues 1,870,400 1,519,600 1,519,600 Subventions and Grants 13,650,500 9,082,300 18,235,700 9,153,400 Service Charges ' Governmental Funds 6,866,000 4,181,800 4,897,900 716,100 Enterprise Funds 20,067,300 21,505,400 21,187,600 (317,800) Trust and Agency Revenues 755,200 767,800 767,800 ' Other Revenues 809,200 811,400 1,443,000 631,600 Total Revenues 70,783,300 65,291,900 75,816,500 10,524,600 Expenditures ' Operating Programs Public Safety 13,897,200 14,852,100 15,013,700 (161,600) Public Utilities 7,928,900 8,549,700 8,929,600 (379,900) ' Transportation 4,411,400 5,146,900 5,205,700 (58,800) Leisure,Cultural,&Social Services 5,079,100 5,524,300 5,693,800 (169,500) Community Development 4,235,800 4,397,600 5,079,700 (682,100) ' General Government 6,811,300 7,473,800 8,153,900 (680,100) Total Operating Programs 42,363,700 45,944,400 48,076,400 (2,132,000) Capital Projects 24,203,500 24,809,700 67,524,200 (42,714,500) ' Debt Service 6,008,400 6,371,100 6,045,200 325,900 Total Expenditures 72,575,600 77,125,200 121,645,800 (44,520,600) ' Other Sources(Uses) Operating Transfers In 8,273,700 6,474,100 6,693,400 219,300 Operating Transfers Out (8,273,700) (6,474,100) (6,693,400) (219,300) ' Proceeds from Debt Financings 5,263,300 10,623,200 10,623,200 Potential MOA Adjustments (993,900) (986,000) 7,900 Other Sources(Uses) 1,962,000 1,471,500 (490,500) ' Expenditure Savings 759,900 759,900 Total Other Sources(Uses) 5,263,300 129351,200 119868,600 482,600 ' Revenues and Other Sources Over(under) Expenditures and Other Uses 3,471,000 517,900 (33,960,700) (34,478,600) Fund Balance(Working Capital ' Beginning of Year 42,836,500 23,137,700 46,307,500 22,756,200 Fund Balance/Working Capital ' End of Year Reserved for Debt Service 1,568,500 1,731,800 1,568,500 (163,300) Unreserved 44,739,000 21,923,800 10,778,300 (11559,100) ' Total Fund Balance $46,307,500 $23,655,600 $12,346,800 ($11,722,400) ' B-20 I RAN 11,Lei RN 0 3 • ALL GOVERNMENTAL FUNDS COMBINED ' 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance Revenues ' Tax Revenues 25,807,300 26,528,600 26,869,900 341,300 Fines and Forfeitures 321,700 304,000 304,000 Investment and Property Revenues 923,100 769,100 769,100 ' Subventions and Grants 10,897,300 5,926,400 13,960,600 8,034,200 Service Charges 6,866,000 4,181,800 4,897,900 716,100 Other Revenues 495,900 690,000 1,316,700 626,700 ' Total Revenues 45,311,300 38,399,900 48,118,200 9,718,300 Expenditures ' Operating Programs Public Safety 13,897,200 14,852,100 15,013,700 (161,600) Transportation 1,954,100 2,096,100 1,982,600 113,500 Leisure,Cultural,&Social Services 4,711,000 5,156,000 5,328,000 (172,000) ' Community Development 4,235,800 4,397,600 5,079,700 (682,100) General Government 6,839,500 7,473,800 8,198,200 (680,100) Total Operating Programs 31,637,600 33,975,600 35,602,200 (1,582,300) ' Reimbursed Expenditures (2,895,900) (3,045,400) (3,089,700) 44,300 Total Operating Expenditures 28,741,700 30,930,200 32,512,500 (1,582,300) Capital Improvement Plan Projects 12,222,400 11,300,300 31,014,200 (19,280,500) ' Debt Service 2,036,700 2,019,900 2,021,500 (1,600) Total Expenditures 43,000,800 44,250,400 65,548,21H1 (21,297,800) Other Sources(Uses) ' Operating Transfers In 8,052,000 5,967,100 5,810,000 (157,100) Operating Transfers Out (8,273,700) (6,474,100) (6,693,400) (219,300) ' Proceeds from Debt Financings (163,300) 4,125,300 4,125,300 Other Sources(Uses) 490,500 (490,500) Potential MOA Adjustments (823,200) (815,300) 1,638,500 ' Expenditure Savings 759,900 759,900 Total Other Sources(Uses) (385,000) 4,045,500 3,186,500 771,600 Revenues and Other Sources Over(under) ' Expenditures and Other Uses 1,925,500 (1,805,000) (14,243,500) (12,438,500) Fund Balance,Beginning of Year 23,380,300 11,628,500 25,305,800 13,263,700 ' Fund Balance,End of Year Reserved for Debt Service 1,568,500 1,731,800 1,568,500 (163,300) ' Unreserved 23,737,300 8,091,700 9,493,800 1,402,100 Total Fund Balance $25,305,800 $9,823,500 $11,062,300 1,238,800 ' B-21 Amk ' ALL ENTERPRISE AND AGENCY FUNDS COMBINED ' 2001-02 2002-03 Original Revised Actual Budget Projection Variance Revenues Fines and Forfeitures 635,700 591,000 591,000 Investment and Property Revenues 947,300 750,500 750,500 ' Subventions and Grants 2,753,200 3,155,900 4,275,100 1,119,200 Service Charges 20,067,300 21,505,400 21,187,600 (317,800) Other Revenues 313,300 121,400 126,300 4,900 ' Trust and Agency Revenues 755,200 767,800 767,800 Total Revenues 25,472,000 26,892,000 27,698,300 806,300 Expenditures ' Operating Programs Public Utilities 7,928,900 8,549,700 8,929,600 (379,900) Transportation 2,457,300 3,050,800 3,223,100 (172,300) Leisure,Cultural,&Social Services 368,100 368,300 365,800 2,500 General Government 2,867,700 3,045,400 3,045,400 Total Operating Programs 13,622,000 15,014,200 15,563,900 (549,700) ' Capital Projects 11,981,100 13,509,400 36,510,000 (23,000,600) Debt Service 3,971,700 4,351,200 4,023,700 327,500 Total Expenditures 29,574,800 32,874,800 569097,600 (23,222,800) Other Sources(Uses) Operating Transfers In 221,700 507,000 883,400 376,400 ' Proceeds from Debt Financings 5,426,600 6,497,900 6,497,900 Expenditure Savings Other Sources(Uses) 1,471,500 1,471,500 ' Potential MOA Adjustments (170,700) (170,700) Total Other Sources(Uses) 5,648,300 8,305,700 89682,100 376,400 Revenues and Other Sources Over(under) Expenditures and Other Uses 1,545,500 2,322,900 (19,717,200) (22,040,100) Working Capital,Beginning of Year 19,456,200 11,509,200 21,001,700 9,492,500 Fund Balance,End of Year $21,001,700 $13,8329100 $1,284,500 ($12,547,600) I B-22 A • • • ' GENERAL FUND ' 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance Revenues Tax Revenues 25,807,300 26,528,600 26,869,900 341,300 Fines and Forfeitures 321,700 304,000 304,000 Investment and Property Revenues 742,500 634,600 634,600 ' Subventions and Grants 3,035,900 2,883,000 2,937,500 54,500 Service Charges 4,747,500 3,421,300 3,876,200 454,900 Other Revenues 179,700 50,000 75,000 25,000 ' Total Revenues 34,834,600 33,821,500 34,697,200 875,700 Expenditures Public Safety 13,897,200 14,852,100 15,013,700 (161,600) ' Transportation 1,954,100 2,096,100 1,982,600 113,500 Leisure,Cultural,and Social Services 4540,000 4,968,000 5,055,500 (87,500) Community Development 3,852,000 4,051,900 4,730,000 (678,100) General Goverment 6,811,300 7,473,800 8,153,900 (680,100) Total Program Expenditures 31,054,600 33,441,900 34,935,700 (1,493,800) Reimbursed Expenditures (2,895,900) (3,045,400) (3,089,700) 44,300 ' Total Expenditures 28,158,700 30,396,500 31,846,000 (1,449,500) Other Sources(Uses) Operating Transfers In 934,700 887,700 887,700 ' Operating Transfers Out (7,227,900) (5,494,400) (5,755,700) (261,300) Expenditure Savings 759,900 759,900 Potential MOA Adjustments (823,200) (815,300) 7,900 ' Total Other Sources(Uses) (6,293,200) (4,670,000) (4,923,400) (253,400) Revenues and Other Sources Over(Under) ' Expenditures and Other Uses 382,700 (1.245,000) (2,072,200) (827,200) Fund Balance,Beginning of Year 9,069,300 7,639,600 9,452,000 1,812,400 Fund Balance,End of Year $9,452,000 $6,394,600 $7,379,800 $985,200 B-23 ' CHANGES IN FINANCIAL POSITION ' DOWNTOWN ASSOCIATION FUND ' 2001-02 2002-03 Original Revised Actual Budget Projection variance ' Revenues Investment and Property Revenues 6,200 5,000 5,000 Service Charges 402,200 348,500 348,500 ' Total Revenues 408,400 353,500 353,500 ' Operating Expenditures Community Development 383,800 345,700 349,700 (4,000) ' Total Expenditures 383,800 345,700 349,700 4,000 Other Sources(Uses) ' Operating Transfers In Revenues and Other Sources Over(Under) Expenditures and Other Uses 24,600 7,800 3,800 (4,000) Fund Balance,Beginning of Year 44,800 39,700 69,400 29,700 ' Fund Balance,End of Year $69,400 $47,500 $73,200 $25,700 1 I ' B-24 _ I CHANGES IN FINANCIAL POSITION- GAS TAX 2001-02 2002-03 Original Revised Actual Budget Projection Variance Revenues Subventions and Grants Traffic Congestion Grant 111,100 92,000 50,000 (42,000) Gasoline Tax 869,800 867,800 867,800 Total Revenues 980,900 959,800 9179800 (42,000) Other Sources(Uses) Operating Transfers Out (980,900) (959,800) (917,800) 42,000 Revenues and Other Sources Over(Under) Expenditures and Other Uses Fund Balance,Beginning of Year Fund Balance,End of Year $ - $ - $ - $ - I 1 1 I I B-25 ' I CHANGES IN FINANCIAL POSITION TRANSPORTATION DEVELOPMENT ACT FUND ' 2001-02 2002-03 Original Revised Actual Budget Projection Variance ' Revenues Subventions and Grants ' TDA Revenues 21,200 19,900 19,900 Total Revenues 21,200 19,900 19,900 ' Other Sources(Uses) Operating Transfers Out (21,200) (19,900) (19,900) ' Revenues and Other Sources Over(Under) Expenditures and Other Uses ' Fund Balance,Beginning of Year Fund Balance,End of Year $ - $ - $ $ _ 1 I I ' B-26 LCHANGES IN FINANCIAL POSITION COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)FUND 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance Revenues ' Subventions and Grants CDBG Allocation 1,153,800 946,200 1,795,800 849,600 ' State Grant Close-out 22,200 50,000 50,000 Total Revenues 1,176,000 996,200 1,845,800 849,600 Expenditures ' Operating Programs Leisure,Cultural,&Social Services 171,000 188,000 272,500 (84,500) ' General Government 28,200 44,300 (44,300) Total Operating Programs 199,200 188,000 316,800 (128,800) Capital Improvement Plan Projects 655,300 486,200 1,207,000 (720,800) ' Debt Service 321,500 322,000 322,000 Total Expenditures 1,176,000 996,200 1,845,800 (849,600) Other Sources(Uses) ' Proceeds from Debt Financing ' Total Other Sources(Uses) Revenues and Other Sources Over(Under) ' Expenditures and Other Uses Fund Balance,Beginning of Year ' Fund Balance,End of Year $ - $ - $ - $ I B-27 ' ICHANGES IN FINANCIAL POSITION ' LAW ENFORCEMENT GRANT FUND ' 2001-02 2002-03 Original Revised Actual Bud et Projection tion Variance ' Revenues Investment and Property Revenue 20,700 14,000 14,000 ' Subventions and Grants Federal Grants 264,700 State Grants 53,400 ' Service Charges 16,700 10,000 10,000 Total Revenues 90,800 24,000 288,700 ' Expenditures Operating Programs Public Safety ' Total Operating Programs Capital Improvement Plan Projects 9,700 433,400 (433,400) Total Expenditures 9,700 433,400 (433,400) ' Other Sources(Uses) Operating Transfers In 4,900 3,400 ' Operating Transfers Out (43,700) Total Other Sources(Uses) (38,800) 3,400 ' Revenues and Other Sources Over(Under) Expenditures and Other Uses 42,300 24,000 (141,300) (165,300) ' Fund Balance,Beginning of Year 174,800 46,900 217,100 170,200 ' Fund Balance,End of Year $217,100 $70,900 $75,800 $47900 B-28 1 FINANCIALCHANGES IN POSITION CAPITAL OUTLAY FUND 2001-02 2002-03 Original Revised Actual Budget Pro ection Variance Revenues Subventions and Grants 3,708,600 276,000 6,382,400 6,106,400 Service Charges Other Revenues 113,800 601,700 601,700 Total Revenues 3,822,400 276,000 6,984,100 6,708,100 Expenditures Capital Improvement Plan Projects 7,718,500 7,586,600 23,753,800 (16,167,200) Total Expenditures 7,718,500 7,586,600 23,753,800 (16,167,200) Other Sources(Uses) Operating Transfers In 4,685,500 2,694,800 2,532,700 (162,100) Other Sources(Uses) 490,500 (490,500) Proceeds from Debt Financing 4,125,300 4,125,300 Total Other Sources(Uses) 4,685,500 7,310,600 6,658,000 (652,600) Revenues and Other Sources Over(Under) Expenditures and Other Uses 789,400 (10,111,700) (10,111,700) Fund Balance,Beginning of Year 9,322,300 10,111,700 10,111,700 Fund Balance,End of Year $10,111,700 $ - $ - $ - I I I I I I B-29 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND ' 2001-02 2002-03 Original Revised Actual Bu Pro'ection Variance ' Revenues Investment and Property Revenue 21,900 20,000 20,000 Subventions and Grants 127,500 403,500 ' Service Charges Park In-Lieu Fees 493,600 5,000 170,900 165,900 ' Dwelling Unit Fees 4,900 5,000 5,000 Other Revenue Total Revenues 5209400 157,500 599,400 441,900 ' Expenditures Capital Improvement Plan Projects 27,100 413,000 1,480,500 (1,067,500) ' Total Expenditures 27,100 413,000 1,480,500 (1,067,500) Revenues and Other Sources Over(Under) Expenditures and Other Uses 493,300 (255,500) (881,100) (625,600) ' Fund Balance,Beginning of Year 554,000 270,500 1,047,300 776,800 ' Fund Balance,End of Year $1,047,300 $15,000 $166,200 $151,200 1 I I I ' B-30 INI-FINANCIAL .POSITION TRANSPORTATION IlvIPACT FEE FUND 2001-02 2002-03 O'rigunal Revised Actual, Budget Pro` ` 'offVariance Revenues Investment and Property Revenue 39,200 13,500 13,500 Subventions and Grants 664,000 664,000 Service Charges 638,200 392,000 410,000 18,000 Other Revenue 600,000 600,000 Total Revenues 677,400 1,669,500 19687,500 18,000 ' Expenditures Capital Improvement Plan Projects 69,500 1,877,000 2,534,500 (657,500) ' Total Expenditures 69,500 1,877,000 2,534,500 (657,500) Other Sources(Uses) ' Operating Transfer Out Revenues and Other Sources Over(Under) ' Expenditures and Other Uses 607,900 (207,500) (847,000) (639,500) Fund Balance,Beginning of Year 273,800 243,200 881,700 638,500 ' Fund Balance,End of Year $881,700 $35,700 $34,700 ($11000) ' B-31 ' CHANGES IN FINANCIAL POSITION ' OPEN SPACE PROTECTION FUND ' 2001-02 2002-03 Original Revised Actual Budget Projection Variance ' Revenues Investment and Property Revenue 24,400 14,000 14,000 Subventions and Grants 1,921,300 525,000 525,000 ' Service Charges 58,800 Other Revenue 105,800 Total Revenues 2,110,3110 14,000 539,000 525,000 ' Expenditures ' Capital Improvement Plan Projects 2,848,300 200,000 752,200 (552,200) Total Expenditures 2,848,300 200,000 752,200 (552,200) ' Other Sources(Uses) Operating Transfer in 250,000 200,000 200,000 ' Revenues and Other Sources Over(Under) Expenditures and Other Uses (488,000) 14,000 (13,200) (27,200) ' Fund Balance,Beginning of Year 585,800 188,200 97,800 (90,400) Fund Balance,End of Year $97,800 $202,200 $84,600 ($117,600) I I ' B-32 �CHANGES IN FINANCIAL POSITION AIRPORT AREA Ev PACT FEE FUND ' 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance ' Revenues Investment and Property Revenues 10,900 5,000 5,000 Service Charges 39,200 27,300 27,300 ' Total Revenues 50,100 5,000 32,300 27,300 Expenditures Capital Improvement Plan Projects Other Sources(Uses) ' Operating Transfer in Revenues and Other Sources Over(Under) ' Expenditures and Other Uses 50,100 5,000 32,300 27,300 Fund Balance,Beginning of Year 240,200 245,200 290,300 45,100 ' Fund Balance,End of Year $290,300 $250,200 $322,600 $72,400 1 1 B-33 ' CHANGES IN FINANCIAL ' AFFORDABLE HOUSING FUND ' 2001-02 a 2002-03 Qflglnal Revised _ -Actual Budget ,,,, ection Variance ' Revenues Investment and Property Revenues 20,000 3,000 3,000 Service Charges 464,900 50,000 50,000 ' Total Revenues 484,900 3,000 53,000 50,000 ' Expenditures Capital Improvement Plan Projects ' Other Sources(Uses) Operating Transfer in ' Revenues and Other Sources Over(Under) Expenditures and Other Uses 484,900 3,000 53,000 50,000 ' Fund Balance,Beginning of Year 201,900 443,400 686,800 243,400 Fund Balance,End of Year $686,800 $446,400 $739,800 $293,400 1 I I ' B-34 POSITION FLEET REPLACEMENT FUND ' 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance Revenues ' Investment and Property Revenues 37,300 60,000 60,000 Other Revenues Sale of Surplus Property 96,600 40,000 40,000 ' Total Revenues 133,900 100,000 100,000 Expenditures , Capital Improvement Plan Projects 894,000 737,500 852,800 (115,300) Total Expenditures 894,000 737,500 852,800 (115,300) , Other Sources(Uses) Operating Transfers In ' General Fund 461,700 486,700 486,700 Total Other Sources(Uses) 461,700 486,700 486,700 Revenues and Other Sources Over(Under) ' Expenditures and Other Uses (298,400) (150,800) (266,100) (115,300) Fund Balance,Beginning of Year 1,181,600 780,000 883,200 103,200 , Fund Balance,End of Year $883,200 $629,200 $617,100 ($12,100) ' 1 t 1 B-35 ,CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND ' 2001-02 2002-03 Original Revised Actual Budget Pro'ection Variance ' Expenditures Debt Service ' 1994 Refunding Revenue Bonds 380,900 382,400 382,400 1996 Lease Revenue Bonds 524,200 520,500 520,500 1999 Revenue Bonds 609,500 2001 Refunded Revenue Bonds 200,600 795,000 795,000 Energy Conservation Lease Purchase 1,600 1,600 Total Expenditures 1,715,200 1,697,900 1,699,500 1,600 ' Other Sources(Uses) Proceeds from debt financing (163,300) ' Operating Transfers In 1,715,200 1,697,900 1,699,500 1,600 Total Other Sources(Uses) 1,551,900 1,697,900 1,699,500 1,600 ' Revenues and Other Sources Over(Under) Expenditures and Other Uses (163,300) ' Fund Balance,Beginning of Year Reserved for Debt Service 1,731,800 1,731,800 1,568,500 (163,300) ' Unreserved Fund Balance,End of Year $1,568,500 $1,731,800 $1,568,500 ($163,300) I I I ' B-36 CHANGES FINANCIAL • • WAS FUND 2001-02 2002-03 ' Origind Revised Actual Budget Projection Variance Revenues Investment and Property Revenues 504,300 365,800 365,800 Subventions and Grants 5,000 Service Charges ' Water Sales Water Service Charges 7,055,700 7,744,000 7,744,000 Sales to Cal Poly 414,600 392,000 392,000 Capital Improvement Charges 1,546,500 1,491,200 1,491,200 Connection Charges and Meter Sales 34,900 22,500 22,500 Account Set-up Fee 99,100 107,500 107,500 ' Other Service Charges 114,800 10,000 10,000 Other Revenues 313,300 119,400 119,400 Total Revenues 109088,200 10,252,400 10,252,400 Expenditures ' Operating Programs Public Utilities 3,866,400 3,927,300 4,085,400 (158,100) ' General Government 1,104,500 1,137,600 1,137,600 Total Operating Programs 4,970,900 5,064,900 5,223,000 (158,100) Capital Improvement Plan Projects 3,209,200 1,995,000 17,478,600 (15,483,600) Debt Service 1,166,100 1,144,200 1,102,500 41,700 ' Total Expenditures 9,346,200 8,204,100 23,804,100 (15,600,000) Other Sources(Uses) ' Other Sources 3,390,000 (3,390,000) Proceeds from Debt Financing 8,850,000 (8,850,000) Potential MOA Adjustments (70,300) (70,300) Total Other Sources(Uses) (70,300) 12,169,700 12,240,000 ' Revenues and Other Sources Over(under) Expenditures and Other Uses 742,000 1,978,000 (1,382,000) (3,360,000) ' Working Capital,Beginning of Year 8,874,700 5,917,900 9,616,700 3,698,800 Working Capital,End of Year $9,616,700 $7,895,900 $8,234,700 $338,800 ' I I B-37 ' CHANGES • • POSITION SEWER FUND ' 2001-02 2002-03 Original Revised Actual Budget Projection Variance ' Revenues Investment and Property Revenues 173,600 159,200 159,200 Subventions and Grants ' Service Charges Customer Sales Sewer Service Charges 6,880,600 7,131,000 7,131,000 ' Sales to Cal Poly 313,400 256,100 256,100 Industrial User Charges 39,800 39,700 39,700 CUPA Inspection Fees 39,600 84,000 84,000 Capital Improvement Charges 761,500 428,800 428,800 Other Service Charges 118,900 2,000 2,000 Total Revenues 8,327,400 8,100,800 8,100,800 ' Expenditures Operating Programs Public Utilities 3,474,100 3,951,100 4,155,900 (204,800) ' General Government 986,400 969,000 1,015,500 (46,500) Total Operating Programs 4,460,500 4,920,100 5,171,400 (251,300) Capital Improvment Plan Projects 1,692,800 1,135,000 3,697,700 (2,562,700) ' Debt Service 2,129,400 2,135,700 2,143,300 (7,600) Total Expenditures 8,282,700 8,190,800 11,012,400 (2,821,600) Other Sources(Uses) ' Potential MOA Adjustments (63,900) (63,900) Total Other Sources(Uses) (63,900) (63,900) Revenues and Other Sources Over(Under) Expenditures and Other Uses 44,700 (153,900) (2,975,500) (2,821,600) Working Capital,Beginning of Year 5,080,000 1,900,100 5,124,700 3,224,600 ' Working Capital,End of Year $5,124,700 $1,746,200 $2,149,200 $403,000 I B-38 CHANGES IN FINANCIAL POSITION CREEK AND FLOOD PROTECTION FUND 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance Revenues Investment and Property Revenues Subventions and Grants-Zone 9 100,000 67,000 (33,000) Service Charges ' Single-Family Residential 109,400 (109,400) Multi-Family Residential 28,800 (28,800) Educational 3,000 (3,000) ' Other Non-Residential 144,600 (144,600) Other Revenue Total Revenues 385,800 67,000 (318,800) Expenditures Operating Programs Transportation 251.800 357,500 (105,700) ' General Government 138,700 92,200 46,500 Total Operating Programs 390,500 449,700 (59,200) Capital Improvment Plan Projects 286,000 254,900 31,100 ' Total Expenditures 676,500 704,600 (28,100) Other Sources(Uses) ' Operating Transfer In 290,700 637,600 346,900 Total Other Sources(Uses) 290,700 637,600 346,900 Revenues and Other Sources Over(Under) Expenditures and Other Uses Working Capital,Beginning of Year I Working Capital,End of Year $ - $ - $ - $ - I I I B-39 I ' CHANGES IN FINANCIAL POSITION ' PARKING FUND ' 2001-02 2002-03 Original Revised Actual Budget Pro'ection Variance ' Revenues Investment and Property Revenues 237,700 199,100 199,100 Fines and Forfeitures 635,700 591,000 591,000 ' Service Charges Parking Meter Collections Lots 414,600 336,600 336,600 Streets 762,800 815,300 815,300 Parking Structure Collections 379,300 556,300 556,300 Long-Term Parking Revenues 110,800 309,800 309,800 Lease Revenues 162,000 195,600 195,600 ' Parking In-Lieu Fees 75,400 608,800 608,800 Other Service Charges 101,500 300 300 Total Revenues 2,8799800 3,612,800 3,612,800 ' Expenditures Operating Programs Transportation 875,100 957,600 1,011,800 (54,200) I General Government 313,200 322,600 322,600 Total Operating Programs 1,188,300 1,280,200 1,334,400 (54,200) Capital Improvement Plan Projects 5,843,600 8,906,400 12,011,200 (3,104,800) ' Debt Service 676,200 1,071,300 777,900 293,400 Total Expenditures 7,7089100 11,257,900 14,123,500 (2,865,600) Other Sources(Uses) ' Proceeds from Debt Financing 5,426,600 6,497,900 6,497,900 Other Sources(Uses) 1,471,500 1,471,500 Potential MOA Adjustments (13,500) (13,500) ' Total Other Sources(Uses) 5,426,600 7,955,900 7,955,900 Revenues and Other Sources Over(Under) Expenditures and Other Uses 598,300 310,800 (2,554,800) (2,865,600) ' Working Capital,Beginning of Year 4,529,200 3,463,600 5,127,500 1,663,900 Working Capital,End of Year: $5,127,500 $3,774,400 $2,572,700 ($1,201,700) I B-40 CHANGES IM FINANCIAL POSITION ' TRANSIT FUND ' 2001-02 2002-03 ' Original Revised Actual Budget Projection Variance Revenues ' Investment and Property Revenues 2,600 2,600 Subventions and Grants TDA Revenues 1,236,900 1,171,200 1,171,200 ' Other Grants 1,000,000 1,289,900 289,900 FTA Grants 1,511,300 884,700 1,747,000 862,300 Service Charges 370,500 370,400 370,400 Other Revenues 2,000 6,900 4,900 Total Revenues 3,118,700 3,430,900 4,588,000 1,157,100 ' Expenditures Operating Programs ' Transportation 1,582,200 1,841,400 1,853,800 (12,400) General Government 270,800 278,900 278,900 Total Operating Programs 1,853,000 2,120,300 2,132,700 (12,400) ' Capital Improvement Plan Projects 1,185,500 1,089,000 2.247,300 (1,158,300) Total Expenditures 3,038,500 3,209,300 4,380,000 (1,170,700) Other Sources(Uses) ' Potential MOA Adjustments (6,300) (6,300) I Total Other Sources(Uses) (6,300) (6,300) Revenues and Other Sources Over(Under) Expenditures and Other Uses 80,200 215,300 201,700 13,600 ' Working Capital,Beginning of Year 187,100 7,200 267,300 260,100 Working Capital,End of Year $267,300 $222,500 $469,000 $2462500 ' I B-41 CHANGES IN FINANCIAL POSITION GOLF FUND ' 2001.02 2N2-03 Original Revised Actual Budget Projection variance ' Revenues Investment and Property Revenues 1,600 1,000 1,000 ' Service Charges Retail Sales 9,200 12,000 12,000 Green Fees 223,700 281,000 249,000 (32,000) ' Other Fees 38,100 24,700 24,700 Total Revenues 272,600 318,700 286,700 (32,000) ' Expenditures Operating Programs Leisure,Cultural&Social Services 368,100 368,300 365,800 2,500 ' General Government 113,700 117,100 117,100 Total Operating Programs 481,800 485,400 482,900 2,500 Capital Improvement Plan Projects 45,000 85,500 (40,500) ' Total Expenditures 481,800 530,400 568,400 (38,000) Other Sources(Uses) ' Operating Transfers In 221,700 216,300 245,800 29,500 Expenditure Savings ' Potential MOA Adjustments (4,600) (4,600) Total Other Sources(Uses) 2219700 211,700 241,200 29,500 Revenues and Other Sources Over(under) Expenditures and Other Uses 12,500 (40,500) (40,500) Working Capital,Beginning of Year 28,000 40,500 40,500 ' Working Capital,End of Year $40,500 $ - $ - $ - I I I I B-42 CHANGES POSITION WHALE ROCK COMMISSION ' 2001-02 2002.03 ' Original Revised Actual Budget Projection variance ' Revenues Investment and Property Revenues 30,100 22,800 22,800 Subventions&Grants Service Charges Member Agency Contributions 477,700 447,300 447,300 Water Distribution Charges 275,300 320,000 320,000 ' Other Revenues 1,100 Other Revenues 1,100 500 500 Total Revenues 785,300 790,600 790,600 ' Expenditures Operating Programs Public Utilities 588.400 671,300 688,300 (17,000) General Government 79,100 81,500 81,500 ' Total Operating Programs 667,500 752,800 769,800 (17,000) Capital Improvement Plan Projects 50.000 53,000 734.800 (681,800) Total Expenditures 717,500 805,800 1,504,600 (698,800) ' Other Sources(Uses) Potential MOA Adjustments (12,100) (12,100) ' Total Other Sources(Uses) (12,100) (12,100) Revenues and Other Sources Over(under) ' Expenditures and Other Uses 67,800 (27,300) (726,100) (698,800) Working Capital,Beginning of Year 757,200 220,400 825,000 604,600 ' Working Capital,End of Year $825,000 $193,100 $98,900 ($94,200) I I B-43 ' Section C ' MID-YEAR BUDGET REQUESTS 1 1 I SUMMARY OF 2002-03 MID-YEAR BUDGET tPage No. 2002-03 1 Police Administration Y Booking Fees C-2 $ 45,000 Long-Range Planning ■ Airport and Margarita Area Specific Plans C-3 80,000 There will be$40,000 in revenue offsets from property owners, resulting in a net cost of$40,000. ® Housing Element Update C-7 140,100 Net of$14,900 in other offsetting departmental savings. ' Building&Safety ■ Building Plan Review Contract Services C-10 25,000 (An additional$181,000 in revenue is expected to offset this request.) 1 Risk Management ■ Property Insurance Premiums C-11 21,000 ' Total:General Fund Operating Programs $ 311,100 1 1 I I C-1 SIGNIFICANT OPERATING o PROGRAM BOOKING FEES Request Summary Funding booking fees due to increased arrest activity will cost$45,000. ' Key Objectives Fund increased booking fee costs resulting from increased arrest activity. Factors Driving the Request for Change ' 1. Increased arrest activity to-date, which is forecasted to continue. The following chart shows two years of arrest activity, which is continuing to climb: Quarter 2001 2002 l'Quarter 797 861 8% ' 2nd Quarter 659 852 29% 3`d Quarter 771 891 16% 4d Quarter 660 787 19% Total 2 887 39,391 17% ' Although we do not incur booking fees for all arrests, the above data shows that arrest activity, which ultimately drives booking costs, is increasing. 2. Contract Services account is 99% expended at mid-year, with a balance of $1,800, with a booking fees quarterly payment due in April 2003 at a projected cost of$45,000. 3. This cost was funded based on a projected cost of$140,000 annually ($35,000 per quarter): 1,500 bookings at $92.50 per arrest. Current trends indicate that approximately 2,000 bookings will be made this year, an increase of 33% from our original estimate. Fiscal year to-date, quarterly booking fee expense history is $45,600 in August 2002,$48,655 in November 2002 and $44,125 in January 2003. Consequently,fiscal year to-date at mid-year, booking fees were underfunded, and increased arrest and related booking activity is ' forecasted to continue. 4. Offsetting revenues from local booking fee payments are down,based on Court ordered decisions. ' Alternatives There are no practical alternatives. Cost Summary ' Line Item Description Account No. 2602.03 Booking Fees 100-80100-7227 45,000 C-2 SIGNIFICANT OPERATING PROGRAM CHANGE AIRPORT AND MARGARITA AREA SPECIFIC PLANS Request Summary ' Completing the EIR for the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans and to provide an updateto the Public Facilities Financing Plan for the two specific plans will cost $80,000. However, reimbursements by two area property owners in the amount of$40,000 reduce the "net' cost to the ' City to$40,000. Key Objectives ' 1. Revise and complete the final EIR for the Margarita and Airport areas so these specific plans can proceed to public hearings. ' 2. Revise the public facility financing plan to address the revisions to the land use mix and reduction in infrastructure costs. 3. Adopt the specific plans and ultimately annex the specific plan areas as directed by the General Plan. ' Factors.Driving the Request for Change Addressing Property Owner Concerns The public review of the draft the Airport Area Specific Plan (AASP) and draft environmental impact report generated a large number of comments and significant concerns on the part of the property owners in the area. Comments addressed both the draft specific plan as well as the draft EIR. A primary concern regarding the draft specific plan was the cost of the infrastructure identified for providing services to the area. In addition, the Margarita Area property owners expressed concern over the time still needed to complete the Margarita Area ' plan and requested that.it proceed before the Airport Area.plan Infrastructure Cost 1 Unocal, the largest private property owner in the Airport Area, raised specific issues regarding cost of required infrastructure and the types of urban land uses designated on their property. Several of the Margarita property owners also expressed concern over the infrastructure costs and financing. Because Unocal is the largest property owner in the Airport Area, their support of the specific plan is seen as vital to its success. In addition, the City critically needs housing in the Margarita Area. This led staff to again examine alternatives for reducing infrastructure costs,phasing and level of the infrastructure improvements, and financing mechanisms. ' Previous Cost Reduction Actions The infrastructure plans have already been revised once with the purpose of keeping costs in a range that would be acceptable to the property owners. In the year 2000, the Council approved additional consultant funding for storm water drainage plan changes for the purpose of reducing infrastructure costs. The storm water detention basin located southeast of the BuckleyNachell Road intersection was revised to locate the area-wide detention ' basin south of Buckley Road. The relocation reduced land costs substantially. In addition, a creek by-pass channel and culvert under Broad Street was also eliminated,again with a substantial cost reduction. The Council has supported plan revisions that reduce costs in order to acknowledge the concern of property owners. Additional Infrastructure Cost Reduction Recommendations Staff re-evaluated the infrastructure plans to find alternatives that would still provide the necessary services for the recommended land uses yet lower the costs. Several items were identified. The key costs reducers are a ' major change to the handling of storm water runoff and a change in the timing for providing aesthetic improvements to the Airport Area. Storm water drainage will.change from an area-wide conveyance and detention facility to independent, smaller scale facilities. This approach reduces the costs for the Airport and ' C-3 JIM V AIRPORT AND MARGARITA AREA SPECIFIC PLANS ' Margarita area owners by over$6 million and provides equal or better protection to downstream property owners and San Luis Creek. It does not remove AASP properties from the 100-year flood plain and it does not allow full economic development of properties within the AASP. However, it does significantly reduce the overall cost of development and does strengthen the prospects that multiple properties within the AASP will approve the plan and move forward with adoption and annexation. The other area of cost reductions involves the median improvements for major streets,the deletion of portions of the bicycle route, and delaying undergrounding of utilities. The delay of median improvements along Broad Street south of Prado Road and Tank Farm Road between Santa Fe and Broad Streets will save about $3.5 ' million. The bicycle paths and undergrounding would remain in the specific plans but most would be accomplished along with project improvements as they are built. Some gaps in the system could be completed through grant funding or use of other City resources. This delay will save about$5.5 million in startup costs. Land Use Distribution Changes To Margarita Area For Airport Land Use Plan Compliance Since completion of the draft EIR and draft Margarita Area Specific Plan, the Airport Land Use Commission ' completed a major update to the San Luis Obispo Airport Land Use Plan (ALUP) that affected the Margarita Area Specific Plan. The previous ALUP provided for only a very low intensity of residential development in the Margarita Area. The revised ALUP now allows for up to 800 dwellings, but it required a substantial ' rearrangement of the land uses. These changes result in corresponding changes to the EIR's project description. Also, several of the property owners in the Margarita area are clearly ready and able to proceed with development of their property. This would provide sites for critically needed housing in short distance to existing city ' services. Because of this there is a need to proceed with revising the EIR as soon as possible. Funding Not Available In The Existing Budget Long Range Planning has approximately $29,800 in 2002-2003 budget allocations that will not be spent before July 1. Of this amount we have allocated 50% to this request and 50% to another request related to the City's Housing Element update program. Even so, the available resources are not sufficient to complete the high priority programs the additional funding is being requested to complete. Because of the high level of ' development and building permit applications, it is not possible to transfer resources from these operations without a substantial and.adverse effect on the City residents and other applicants requesting permits. Property Owner Participation Is Available Two property owners, John King and Unocal, are willing to pay half the costs to complete the planning documents. Both King and Unocal have previously contributed to the cost of preparing the Airport Area Specific ' Plan and the EIR for the Airport Area and the Margarita Area. Unocal's contribution is with the understanding that the City will refund the $20,000 if the AASP is not adopted within two years. Staff believes that it is reasonable to allow Unocal this condition because they have already advanced $30,000 toward the project ' whereas most of the other property owners have only advanced $5,000. Short-Term Costs v.Long-Term Gains ' The additional planning and environmental review costs will be recovered through development impact fees as the area develops. There is no reliable method for predicting how long this will take. The "net" expenditure of $40,000 to complete the plans can be expected to improve property owner support for the specific plan. This will ' facilitate annexing the area to the City,which is expected to result in additional sales tax revenues projected to be about$400,000 per year. C-4 AIRPORT AND MARGARITA AREA SPECIFIC PLANS. iAlternatives ' 1. Defer the request to the 2003-2005 budget. There does not appear to be any financial advantage to deferring this action.. There is no reason to believe that there will be any additional sources of funding in the next fiscal year and the costs for completing this project will only increase. In addition, the property owners in the ' Margarita area who have already been annexed to the City are anxious to continue processing their projects and that can only be done if the EIR and specific plan are complete. Deferring the completion of the plans will also result in inefficiencies that come with staff changes that occur over time in the various consultant firms involved with the plans and the EIR. 2. Revise the planning documents with staff resources. The alternative to funding the contract services is to complete the necessary work with City staff. This would require the participation of several departments. ' Given the declining staff resources and the other high priority assignments these same staff are currently dedicated to (including preparation of the 2003-05 financial plan, City budget, the Copeland, Marketplace, Costco, and Housing Element update projects),reassigning existing resources will result in adverse effects to other high priority work. Additional staffing is needed to complete the specific plans, because the staff person presently carrying the primary workload on these projects (Glen Matteson) is retiring in February. The current hiring freeze and budget shortfalls may prevent refilling that position until at least July, perhaps ' longer. The Community Development Department is reserving about $8,000 in contract services to try and. minimize a loss in momentum in completing the Airport and Margarita specific plans. That funding was intended to fund staff resources to process the Orcutt Area Specific Plan application. Staff is recommending ' that this funding be directed to the Airport and Margarita Area specific plans because these plans are at a critical stage in their completion. 3. Continue the status quo. No action would mean that work on the specific plans would cease. This would ' not be consistent with City policy on annexation and a major City goal of implementing programs to achieve the City's housing goals, or with previous actions by the Council to fund and complete these projects. 4. Existing program evaluation. No increase in regular staffing is being requested Implementation Task bate Complete the project change-order with the EIR consultant February 2003 Complete the agreement with Goodwin Assoc. for Financing Plan revisions March 2003 Public review draft EIR ready to circulate May 2003 Complete hearing draft of MASP July 2003 Complete Draft EIR August 2003 Begin public hearings on MASP and EIR September 2003 ' Council adoption of MASP and EIR December 2003 Complete hearing draft of AASP December 2003 Begin public hearings on AASP January 2004 Council adoption of AASP April 2004 . G5 AIRPORT AND MARGARITA AREA SPECIFIC PLANS Cost Summary Line Item Description Account No. 2002A3 Corifracfi5ervtces_�`'. - 80,000 Jones&Stokes Associates Inc:EIR 100-40400-722750,000 Goodwin Associates:Public Facilities Financing Plan 100-40400-7227 23,000 Contingencies @ 10% 100-40400-7227 7,000 As noted above, two area property owners have agreed to fund $40,000 of this cost,resulting in net cost to the , City of 540,000. i . 1 C-6 1 OPERATING nn . - • . ' ' HOUSING ELEMENT UPDATE Request Summary ' 1. Preparing an Environmental Impact Report (EIR) for the City's Housing Element update and related Land Use Element changes, which must be completed by December 31, 2003, will cost $120,000 for consultant services. ' 2. Analyzing the fiscal impacts to the City of implementing these proposed changes will cost $35,000 for consultant services. I Combined,these two work efforts will cost$155,000. However,there is $14,900 in offsetting savings in other departmental areas,resulting in a net budget request of$140,100. Key Objectives 1. Provide for an environmental review as required by CEQA for the State mandated update to the City's approved Housing Element. 2. Provide the community and Council with an analysis of the fiscal effects of implementing the draft update to the Housing Element. Such an analysis will help the community and the Council understand the short- and 1 long- range impacts of any significant changes to the existing General Plan, and to develop quantified objectives to address the difficulties in meeting the Regional Housing Needs Allocation numbers adopted by the San Luis Obispo Council of Governments. t3. Evaluate alternative housing scenarios for meeting the City's Regional Housing Needs Allocation while adhering to the community goals and values expressed in the General Plan Land Use Element. Factors Driving the Request for Change 1. The State mandated update of the City's approved Housing Element is a project under CEQA and as such requires environmental analysis. The staff has already determined that the changes likely to be recommended in the updated plan will have the potential to be significant and that an EIR will be required prior to adoption. 2. By budgeting for these.costs now (and not waiting until 2003-04) the City can get an earlier start on developing all of the above information so that the council can adopt an updated Housing Element by the State deadline of December 31, 2003. 3. Housing has become a high-profile, critical issue for many jurisdictions in California, and particularly in San Luis Obispo City and County. High housing costs and relatively low incomes (compared with more urbanized areas) have resulted in San Luis Obispo becoming one of the least affordable housing markets in ' the U.S. 4. Complex and at times, controversial discussions of Regional Housing Needs have focused state and regional attention on San Luis Obispo as a key player in meeting a significant portion of the county's housing needs. The Housing Element Update will provide the technical analysis needed to address the issues raised and to chart strategies for meeting housing needs, particularly housing affordable to low- and moderate-income persons and households. I5. Preparation of a housing element that is certified by HCD will enable the City to apply for state housing grants for which we are not now eligible,and these grants could help offset housing element update costs. I 6. Updating the Housing Element is expected to result in some level of change to other elements of the General Plan including the Land Use Element. Although the level of changes is unknown, it is likely that some amendment to the Land Use Element map Service and Manufacturing areas to allow high-density housing ' C-7 Alk 1 • • � 1 . • . • 1 1 HOUSING ELEMENT UPDATE and changes increasing density in or around the downtown will result. Given this level of potential change, staff believes the Council policy on providing fiscal impact analysis adopted in October 2002 requires a fiscal analysis be completed before proceeding to public hearings. In order to meet the demanding Housing Element schedule,the fiscal impact analysis must be started before July 2003: Alternatives 1. Continue the status quo. The Housing Element update is required by State law to be completed by December 31, 2003. Although work on the update continues with present funding as anticipated, beginning the necessary EIR should not be delayed until 2003-04 if the City expects to meet the mandated.deadline. 2. Do not prepare a fiscal impact analysis. A fiscal impact analysis is not mandated, and the results are unlikely to change the decision-making process. However, it has been requested by numerous members of the public in testimony before the Council. As such, since this is likely to be a topic of major interest in the review process, we recommend preparing this analysis to answer questions about this a timely fashion, resulting in a more efficient,responsive process. 3. Defer or re phase the request. Deferring the request would result in the City not meeting the State's deadline for updating the Housing Element. Failing to meet the update deadline will result in the City's General Plan being out of compliance with State law. This will make the City vulnerable to a legal challenge that the General Plan is inadequate. This would also subject the City to potential penalties or the loss of grant opportunities. There are no provisions in State law for obtaining an extension to the update deadline past December 31, 2003. 4. Implement it in a different way. The alternative to contracting out for the preparation of an EIR is for the City staff to prepare the EIR. This would require the participation of several departments. The City does not have the staff resources to complete the tasks in the required timeframe without substantially slowing work on the Airport Area- Margarita Area- and Orcutt Area specific plans, and slowing the development permit process. Slowing the development review process for a sustained period of time will result in an inability to meet State Permit Processing Streamlining Act deadlines. Implementation Task Date Review . - Review proposals for a consultant prepared EIR April 5,2003 I Sign a contract with the selected consult for the EIR preparation June 1,2003 Receive the Administrative Draft EIR Oct. 15,2003 Prepare an RFP for a consultant prepared fiscal analysis of the draft H.E. update April 15,2003 Sign a contract for the fiscal analysis June 1,2003 Receive the Admin Draft of the analysis Oct. 15,2003 ' C_8 ' SIGNIFICANT OPERATINGPROGRAM ' HOUSING ELEMENT UPDATE ' Cost Summary ' Line Item Description Account No. 2002-03 Contract Services 155,000 Environmental Impact Report 100-40400-7287 120,000 ' Fiscal Effects Analysis ---T ,100-40400-7287 35,000 Total Operating Costs 155,000 Offsetting Costs Savings or Revenues ' Project Fees and Expenses(AASP&OASP Annexation Fees) 100-40400-7287 (13,900) Computer Supplies 100-40400-7413 (500) Professional Conferences 100.40400-7529 (500) ' Net Operating Costs 140,100 I I I ' C-9 BUIIAING PLAN REVIEW CONTRACT SERVICES Request Summary - 1 Adding funding to continue contract services for plan review of building permit applications will cost $35,000 for the remainder of 2002-03. An unusually high tempo for construction activity experienced during 2002 and forecast for 2003 generated a 20% increase in the projected plan check revenue for 2002-03. We have identified $10,000 in other operating savings to offset this request. An additional $181,000 in revenue is expected to offset 1 this request to fund additional plan review consultant services. Key Objectives 1. Ensure timely processing of building permit applications during peak activity periods. 2. Provide a resource to check plans for cotriplex buildings that may be beyond the expertise of City staff. Factors Driving the Request for Change 1. .Robust construction activity and loss of the Plans Examiner during the first half of the 2001-03 period exhausted the funds budgeted for plan review consultant services. The transfer of the Plans Examiner and additional building permit activity was unexpected. 2. The number of Planning Applications approved and discussions with developers suggest that the increased level of building permit activity will continue through the spring of 2003. Alternatives 1. Continue the status quo. Staff resources are inadequate to maintain timely processing for the number of building permit applications anticipated. Applicants will experience delays up to 10 weeks if plan review consultant services are not available to supplement the staff plan check resources. 2. Defer or re phase the request. Plan review under a building permit application cannot be deferred to the next fiscal period. Implementation Assignment of work to plan review consultants will continue without interruption. I Cost Summary Line Item Description Ammnt No. 2002-03 ContraetSeivtoes35,000. _.. En 'neering&Plan Checks 100-40700-7231 35,000 Total Operating Costs 35,000 Offsetting Cost Savings or Revenues Education and Training 100-40700-7459 (2.000) Professional Conferences 100-40700-7529 (3,000) Data Processing 100-40700-7229 (5,000) Net Operating Costs* 25,000 *$181,000 in additional revenue is expected to offset this request. C-10 Adlbk 161 Eel ki I 19[evil 011 IM a:I an k1LJHit91C1M=1 PROPERTY INSURANCE PREMIUMS Request Summary ' Increasing funding for the City's property insurance premium for 2002-03 will cost an additional$21,000 to maintain the City's property insurance coverage. Key Objectives Maintain the City's property insurance coverage on all City facilities. Factors Driving the Request for Change 1 1. For the past several years and prior to September 11, 2001, the property and casualty insurance market had been soft. This meant that prices for automobile,property and liability coverages and workers' compensation declined or held steady for many insurance buyers, including local goverment. Moreover, competition and very aggressive pricing by insurance companies over the last few years also, until recently, gave rise to a "buyers' market". 2. As is the case with many other,segments of the economy, the insurance market is cyclical. Because of the steadily increasing investment returns in the late 1990's, the emphasis during the last several years was on reducing prices and selling insurance. After years of competitive pricing, insurance companies were beginning to see some "red ink" from the practice of pricing insurance below losses and expenses. The 1 decline in the stock market in early 2001 compounded by the events of September 11, 2001, drastically weakened the ability of the insurance industry financially.. 3. Insurance companies cannot sustain continued losses, so they are increasing premiums at renewal time. Our property insurance rate for 2002-03 doubled—a not-uncommon phenomenon. In addition to the increase in the rate, the values of key properties were significantly increased following a site inspection of major City properties by a representative of the insurance company. ' Alternatives 1 1. With estimated property values of over $78 Million, property insurance is an important aspect of the City's risk management program. It would not be prudent to"self-insure"our facilities. 2. The premium for 2002-03 has already been paid. We are expecting a refund of $25,000 as a result of ' 'double-counting" the values for some facilities, but an additional $21,000 is needed to cover the remaining deficit. There is not sufficient funding in the Risk Management or other Human Resources budgets to fund this unanticipated cost. Cost Summary ' Currently,$75,100 is budgeted for property insurance in the Insurance Premiums line item. This request represents an additional $21,000 for property insurance, for a total of$96,100 for that component. Other insurance premiums are also included in that line item. ' Line Item Description Account No. 2002-03 Insurance Premiums 100-30200-7727 21,000 C-11 1 1 Section D 1 . RECENT FINANCIAL AND REVENUE REPORTS I 1 I 1 1 1 1 I ��►iii��ililllill Ilu l i� crty of san tins oEispo f Quarterly Financial Report Second Quarter of 2002-03 January 31,2003 . ••Ten Revenues Saks tax 10,612,000 5,254,700 50% OVERVIEW Property tax 5,362,600 3,267,500 61% Transient occupancy tax 3,992,700 2.186,000 55% ' Utility users tax 3,646,700 2,004,000 55% The accompanying financial statements reflect the Vehicle in-lieu(VLF) 2.502,000 1,251,600 50% City's overall financial position for the fiscal year Business tax 1,387,600 1,297,900 94% Franchise fees 1,352,000 663,300 49% ' through December 2002. Except as noted below, Development review fees 1,667,400 1,067,600 64% revenues and operating expenditures are generally on Recreation fees 988,700 436,800 44% target based on past trends for the second quarter. 1 Interest on investments 600,000 263.000 44% Total 32,111,700. 17,692 00 55% Adjusted Budgets. The revenue projections and • property Tax These reflect apportionment budgets include adjustments for encumbrances and ' carryovers as well as any supplemental payments made to us by the County as of December appropriations approved by the Council as of 31, 2002. December 31,2002. 0 Business Tax. The renewal cycle for business ' tax is substantially complete during the first quarter Mid-Year Review. The City's overall revenue and of each year. expenditure picture will be discussed in greater detail during the Mid-Year Budget Review scheduled for • Development Review Fees. Receipts are the ' Council consideration on February 18,2003. same as the second quarter last year, reflecting continued local development activity. GENERAL FUND • Recreation Fees. Seasonal recreation fees are at ' the same percent collected during the same quarter General Fund Financial Condition. With 50% of last year. the year complete, General Fund revenues are at 56% . Interest on Investments Earnings reflect the ' of projections and expenditures are at 48% as shown below: continuing decline in interest rates and investable. balances. General Fund Balance Budget YTD Actual Percent t Revenues 33,826,000 190771, 00 56% Expenditures. Operating costs are right on target for Expenditures 31,353,800 15,078,700 48% the second quarter of the year as summarized below: Other Sources(Uses) (4856,800) (2,554,200) 53% Balance.,Start of-Year 9:452,000 9,452,000 - Expegidi.tures By Type Budget YTD . , ed Balance Year-to-Date 7,067,4001 10.8%,200 Staffing 25,172,500 12,542;500 —50% Contract services 4,007,200 1,529,600 38% ' Top Ten Revenues. Our top ten revenues_account Telecomm&utilities 1,336,000 603,000 45% for 95% of total General Fund revenues. By focusing Insurance 733,700 776,100 106% Other operating costs 2,963,700 1,112,500 38% on these, we can get an excellent understanding of Minor capital 230,400 54,500 24% our revenue position. Overall, these key revenues are Total by type 34,443,500 16,618.200 48% performing as projected based on payment schedules Reimbursed expenditures (3,089,700) (1,539,500) 50% and past trends for the second quarter. Any i tal 31,353 00 1s,o7s,7oo 49% ' significant variances are noted below. The only key variance "by type" is insurance. This reflects the City's annual premium for liability and property insurance, which is due in full in August of ' D-1 Quarterly Financial Report Second Quarter of 2002-03 each year. While over-expended at this point, we Creek and.Flood Protection Fund 1 expect a credit from our carrier to correct for this. ' Actual Percent Revenues 100,000 67,000U Departmental operating expenditures are also on Expenditures 1 Operating programs 449,700 159,800 target as summarized by the following: em projects zsa,9oo 47,200Other Sources(Uses) 604,600 375,300Expenditures .,- . ,• Balance,Start of Year - - 1 Administration 1,752,700 733,500 42% Balance Year=to Date 235 00 City Attorney 352,100 172;200 49% City Clerk 663,400 203,100 31% parkin Fund Human Resources 1,648.300 1,239,300 75% Working Capital Budget YTD Actual Percent1 Finance 2,635,900 1,156,300 44% Revenues 5.084,300 1,479.600 299'0 Community Development 2,024,000 837.400 41% Expenditures Parks&Recreation 2,633,300 1,154,800 44% Operating programs 1,334,400 612,700 46% Public Works 7,765.300 3,506,600 45% CIP projects 12,011,200 1,700,200 14% 1 Police 8.983,000 4.312,800 48% Debt service 1,071;300 208,400 19% Fire 5,985,500 3,302,200 55% Other Sources(Uses) 6,484,400 2.481,600 38%4 Total Departmental 34,443.50016;618,200 46% Balance,Start'of Year 5,]27,500 5,127,500 1 Reimbursed Expenditures (3.089,700) (1,539,500) 50% Balance Year-to Date - 79 00 6 67400 Total Expenditures 31 53,800 1 15,078,700 48% Key variances by department include: Transit Fund Working�apltal Budget D Actual Percent1 • City Clerk. Election expenditures were less Reveiiues - 4,588,600 400,600 9% Expenditures than anticipated; and vacancies result in staffing Operating programs 2,132,700 612.200 29% savings. CTP projects 2,247,300 577,800 26% Other Sources(Uses) (6,300) 0% • Human Resources As noted above, this Balance.Start of Year 267.300 267,300 reflects the City's annual insurance premiums. Balance Year-to-Date 469,600 (522,100) 1 ENTERPRISE FUNDS Golf Fund Working Capital Budget YTD Actual Percent Revenues 318,700 145,900 46% The following summarizes year-to-date revenues, Expenditures expenditures and changes in working capital for the Operating programs 482,900 248,400 51% enterprise funds. In general, revenues and CIP projects 85,500 2300 3%a' 1 expenditures are consistent with past trends. Other Sources(uses) 209,200 106,900 51% Balance,Start of Year 40,500 -40;500 - Balance Year-to-Date 42,600 Water Fund ' Revenues 10.252.400 5,856,400 57g{ Whale Rock Commission Working Capital Budget YTD Actua-1 Percent Expenditures Revenues 790,600 376.500 48% Operating programs 5,222.900 2,285,900 44`� Expenditures 1 CIP projects 17,478.600 317,400 2% Operating programs 769.800 315.300 41% Debt service 1,144,200 607,000 53% CIP projects 734,800 18,500 3% Other.Sources(Uses) 8.779,700 0% Other Sources(Uses) (12,100) 0% Balance,Stan of Year 9,616,700 9,616,700 - Balance,Start of Year 825,000 825.000 - 1 Balance Year-to-Date -0 03100 12,262 800 Balance Year-to-Date 98,900 867,700 Sewer Fund _ For More Information. This summary is based on Working Capital Budget �-Tb Actual Percent Revenues 8,100.800 4,057,400 sow detailed information produced by the City's financial Expenditures management system If you would like additional Operating programs 5.171,400 2.240,400 43%4 information, or have any questions about the report, CIP projects 3,697,700 627,000 17% please call the Department of Finance at 781-7127. Debt service 2.135,700 2,135,700 100% Other Sources(Uses) (63,900) 0%a Balance,Start of Year 5,124.700 1.12F4 700 - Balan Year-,._Date 2156 00 4179,000 Hard Copy Distribution:Council,Department Heads,Fiscal Officers, Division Managers,Association Presidents■Electronic Distribution: All Employees ' D-2 illlllllllll����� �Illlill�' ! C O IJ► �y f san tins omspo �.,'•?;-[� � �'rr. .y:�s,, -, w.. C,t � -'N t s�f � 4 a.:v. ,i. l i•+.�� .:v'� ¢7ti.�, °•*. _�+..'ti'�,ti f Monthly TOT Report December 2002 February 7, 2003 This report covers the City's transient occupancy tax (TOT) revenues for the months of July 2002 ' through December 2002 compared with the two prior years. As reflected below, revenues for December are down by 0.5% from last year and up 3.3% year to year-to-Date TOT Revenues date. Increase ase) Prior Year Last Year This Year Last Year Vs This Year 2000-01 2001-= 2002 03 Arnountl Percent Trend Analysis. With the July $ 451,913 $ 417,233 $ 441,914 $ 24,681 5.90% minor decline in TOT August 430,054 462,428 490,001 $ 27,573 6.0% revenues in December, fiscal September 350,295 323,271 313,424 $ (9,647) -3Aa/a year 2002-03 is still trending October 325,355 287,150 313,400 $ 26,250 9.1% on a comparable basis with November 285,052 273,450 272,426 $ (1,022) -0.4% fiscal year 2000-01, when December 256,013 232,954 231,657 $ (1,097) -0.5% TOT revenues totaled $3.9 veatito=cece Totat"` 2,q68;682 . 1;996;486 .2;063;024, s61s a^� million. We continue to be January 217,468 207,410 cautious in making any February 249,530 239,883 assessments about what this Mann 281,445 263,061 ' means, however, a review of April 334,074 319,791 May 346,464 339,584 our growth projections may June 392,487 394,047. ' soon become necessary if the - ,r decline continues. ' In the 2002-03 Financial Plan Supplement, we projected TOT revenues would grow by 5% in 2002-03 (to $4.0 million) over revised TOT projections of $3.8 million in 2001-02. (As shown in the sidebar chart, our revised estimate for 2001-02, which projected a 3% decrease in TOT revenues, was right on ' target.) What's This Mean? The results from the first six months of the fiscal year show that year-to-date we are up by 3.3% over fiscal year 2001-02. However, the minor decline of .5% in December is not the good news we were hoping for. Perhaps more significant is the fact that 2002-03 "year-to-date" total is comparable (although slightly less) than the 2000-01 "year-to-date" total. If this is not sustained, however, we may fall short of our expected growth of 5%. We will be monitoring TOT revenue closely during the next quarter and will make any revisions in our projections, if appropriate, at the Mid-Year Budget Review. For More Information. Please call Jodi Polk, Customer Services Supervisor, at (805) 781-7129. IDMTRIBUIlON: City Council, Department Heads, Deparagent Fiscal Officers, Budget Review Team, Economic Development Manager, Promotional Coordinating Committee,Visitors&Conference Bureau,SLA Chamber of Commerce,Barnett Cox&Associates,The Tribune(Lsslic Stevens) ' D-3 City Of san Luis ompo Sales Tax Newsletter ' Third Quarter of Calendar Year 2002 January 15,2003 For the Year. Sales tax revenues for 2002-03 are OVERVIEW projected to be$10.4 million,an increase of 3%from last year. Based upon the strength of the increase in new and For the Quarter. This newsletter covers the City's used car sales and general consumer goods this quarter, sales tax revenues received in December of 2002 for the City's sales tax advisor is forecasting us to meet this ' sales occurring from July through September 2002. After projection. However, anecdotal comments regarding the adjusting for apportionment Christmas quarter sales are not encouraging — it is After adjustments, errors and late payments, anticipated sales tax revenue will not increase over last ' point-of-sale revenues "point-of-sale" revenues were year. Accordingly, we will be reviewing the sales tax were up by 5.T.6 up by 5.7%compared with the revenue projection during the mid-year review process. compared with the same quarter last year. same quarter last year. NEWSLETTER CONTENTS ' Sales Tax Rece' is Sunurign This newsletter includes a summary prepared by the Sales Tax Receipts d Qtr 02 3rdO Reported Point-of-Sale 2,508,841 2,244,083 11.8% City's sales tax advisor (ales taxiter de Llamas) ' Net Adjustments 177,995 38,945 highlighting key trends and sales tax issues. It also Adjusted Point-of Sate 2,330,846 2,205,138 5.7% includes supplemental charts and graphs about the City's 266,904 226,248 18.0% sales tax base,including: Pool Receipts ' Total 1 2,597,75012,431,366 6.8% ■ Major business groups: last five quarters The following summarizes "point-of-sale" revenues by ■ Major business groups: last thirteen quarters major business group, after adjusting for late payments, ■ Sales tax revenues by geographic area:this quarter ' apportionment errors last year and other adjustments compared with last year identified by our sales tax advisor: ■ Sales tax revenues by These charts are based geographic areas: last on "raw"unadjusted Adjusted Sales Tar Receipts Bv T e thirteen quarters data. As such,caution Point-of-Sale Receipts 3rd Qtr 02 3rd0trshould be used in Gen Consumer Goods 640,646 608,962 5-2% ■ Sales per capita:city analyzing these results. Autos&Transportation 724,948 649,631 11.6% compared with the ' Business&Industry 183,102 157,733 16.1% County and state:last thirteen quarters Restaurants&Hotels 245,864 254,377 -3.3% ■ Sales per capita:city compared with six other cities Building&Construction 187,785 186,597 0.6% in the region Food&Drugs 175,230 169,912 3.1% ' Fuel&Service Stations 173,271 177,926 -2.6% Total2,330,8461 2,205,1381 A listing of individuals and organizations that routinely receive this newsletter is provided at the end of the Continuing Trends. Compared with sales tax revenue report. ' for the same time period last year, the adjusted data for this quarter continues to reflect strong new and used car MORE INFORMATION AVAILABLE sales. General consumer goods showed an increase for ' the first time in three quarters, reflecting the opening of The information provided in this newsletter is based on a new stores as part of the refurbishing of the Madonna detailed database available to the City through our sales Plaza. The decrease in 'restaurants & hotels" is tax advisor. If you require additional information about ' consistent with nationwide trends. The decline in fuel the City's retail base, or have any questions about this and service stations is due to lower fuel prices than last newsletter, please contact Linda Asprion, the City's year. Revenue Manager,at(805)781-7126. D-4 ' Section E STATUS OF GOALS AND OBJECTIVES I I ' 161 CAN tWK61ae1*J.A / 1 • ' TABLE OF CONTENTS ' INTRODUCTION General Government ' Civic Offices E-19 Overview E-1 Maintenance of Basic Services E-20 Report Card: Major City Goals E-1 ' Report Card: Other Council Objectives E-2 Action Plan Changes E-2 OTHER COUNCIL OBJECTIVES Next Report E-3 ' MAJOR CITY GOALS Leisure,Cultural &Social Services Laguna Lake Master Plan E-22 ' Public Utilities Community Development Water Supply E-4 Central Commercial Zone Expansion E-22 ' Large Building Development Standards E-22 Transportation Court Street Portion of the Copeland Project E-22 Streets and Sidewalks E-6 Historic Preservation E-22 ' Los Osos Valley Road Improvements E-7 Downtown Pedestrian Lighting Plan E-23 Flood Protection E-8 Convention Center Strategy E-23 Railroad Recreational Trail E-9 ' Downtown Transportation Center: North Area Regional Facility E-10 Parking and Access Advisory Body E-12 ' Leisure,Cultural& Social Services Athletic Fields E-13 ' Recreation Center Remodel: Community-Senior Center E-14 Cultural Services E-15 ' Community Development Housing E-16 IOpen Space Preservation E-18 I I I I &I wil 6 e e i INTRODUCTION ' OVERVIEW approved by the Council as part of the 2001-03 Financial Plan. As a benchmark,through February 2003, we are 8001c through the two-year Financial This report details the status of major City goals and Plan period Many of the goals are at or near this other objectives set by the Council as part of the level and most have seen consistent progress since 2001-03 Financial Plan as the last update. of February 2003. In .. general, we are on-track Organization. The "report card" is followed by a I in accomplishing these Many of these are multi-year goals that "high level" summary of any notable changes from objectives based on the have activities the original action plan. Following this is a more work programs adopted associated with them detailed report on each goal and objective. by the Council. that go beyond the 1 two-year 2001-03 For Major Cit Goals, the report shows the time frame. J Y P Report Card. The objective, action plan as adopted by the Council, following is a quick revised action plan (if applicable) and brief status 1 "report card" on the status of major City goals and summary as of February 2003. Shorter reports are other Council objectives based on the "action plans" provided for"Other Council Objectives." Report Card: Major City Goals Water Supply ' Street and Sidewalk Maintenance Los Osos Valley Road laproverrents Rood Rotection Railroad Recreational Trail DTC:North Area Regional Facility Parking and Access Advisory Body Athletic Fields ' Corr unity-Senior Center Remodel Cultural Services I ' Housing Open Space Reservation Civic Offices ' Maintenance of Basic Services 0% 10% 209/0 30% 400/6 50% 60% 70% 80% 90% 100% Note. The projected status is based on the Action Plan as originally approved in the 2001-03 along with amendments to ' specific tasks as approved by the Council since then. E-1 STATUS OF •AOBJECTIVES INTRODUCTION I Report Card: Other Council Objectives Laguna Lake Master Plan I Central Commercial Zone Expansion Large Building Development Standards t Court Street Portion of the Copeland Project I Historic Preservation Downtown Pedestrian Lighting Plan ' Convention Center Strategy 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ACTION PLAN CHANGES - -J -,----- c. Award of contract for Phase I construction 1 • •-- --� - _---� ' Y•--=- -°-� of the water reuse project has been delayed As noted above, in general we are on-track in from July 2002 to April 2003. accomplishing these objectives based on the work 2. Streets and Sidewalks. Five hundred and ten f programs adopted by the Council. However, notable new 10" arterial street signs will be installed by changes from the original action plans include the August rather than June 2003. following.. I 3. Los Osos Valley Road Improvements. The Major City Goals PSR-PDS has been moved forward once again 1and the consultant will be able have it completed . Water Supply. The following action plan steps by the June 2003 date. have been delayed: a. Presentation of the revised Nacimiento 4. Flood Protection. Final completion of the pipeline EIR from January 2002 to June Waterways Management Plan has been delayed 2003 due to unavoidable delays associated until May 2003 to allow for completion of the with defining the project alignment. EIR and subsequent public hearings. Design ' b. The environmental analysis for increased and the processing of the EIR have pushed back groundwater production is now proposed to beginning construction on the new Foothill be completed concurrent with the facility bridge to May 2003 with completion now design by March 2004. expected by September 2004. Completion of the Storm Drainage Master Plan has been delayed until May 2003, due to in- ' E-2 INTRODUCTION house engineering workloads. In June 2002, completed by March 2003 with the remaining Council rescinded the Creek and Flood plans to follow on a three-month schedule. Protection Fund Program fee schedule. In the coming year, staff will be researching new ways 11. Civic Offices. Due to delays in contract to fund the program negotiations, completion of Civic offices in the I Palm-Morro Parking/office project has been set 5. Railroad Recreational Trail. Completion of the back from 2003 to 2004. Morro Street Bike Boulevard is now anticipated in July 2003 rather than June. Other Council Objectives 6. North Area Regional Facility. A combined 12. Laguna Lake Master Plan. This project was parking and Transit Facdity. With combining delayed initially by shortages in the engineering Transit and Parking studies and hiring of the staff. Further work on the project is to be consultants finalized, the draft conceptual design deferred due to a shortage of available funding. and environmental review have been pushed back to April 2003. Council approval of the 13. Historic Preservation. This program is implementation plan is still expected in June recommended to be put on hold pending 2003. These schedule changes are due to added completion of the Housing Element. work on the Copeland project. 14. Downtown Pedestrian Plan, Two fixtures have 7. Athletic Fields. Delays in this project occurred been installed in the Downtown area to allow for early on due to engineering staff shortages and a full evaluation by the public, Downtown other unexpected priorities such as the Foothill Association, CHC, ARC and City Council. bridge. Stockton Field and Sinsheimer Stadium Council action to adopt a light fixture and pole ' lighting upgrades are under design with design is expected this Spring. completion anticipated for August 2003 rather than June. 15. Convention Center Strategy. Based on a ' recently identified City Council Major City Goal S. Recreation Center Remodel. The contract has for 2003-05 to increase Transient Occupancy been awarded and the remodel is scheduled for Tax revenue, a formal work program, including completion in September 2003. a Convention Center strategy, will be developed. 9. Cultural Services. Design work for NEXT REPORT _ rehabilitation of the Southern Pacific Freight I_. . .:. m�._ __.:. Warehouse for a railroad museum did not begin until January 2003 with construction anticipated We will present the next "formal report" to the to begin in August 2003. Council as part the 2003-05 Preliminary Financial 10. Open Space Preservation. With the approval of Plan in May 2003. In the interim, we will keep the the Conservation Guidelines in September 2002, Council up-to-date on the status of major projects the first open space management plan (Irish through agenda reports, Council Notes and other Hills Natural Reserve) is expected to be briefing opportunities. 1 E-3 MAJOR CITY GOALS , WATER SUPPLY ' Objective. Continue efforts to develop long-term water supplies, including: preserving present water rights and ' pursuing all options with the exception of State Water; using and protecting groundwater; pursuing acquisition of property for water supply; completing the water reuse project; seeking water supply opportunities as part of any annexations; and confirming Council water subcommittee to build relationship with North County. Action Plan Task Original Revised ' Preserve Present Water Rights 1. Revise agreements with URS Consultants for completion of Salinas 9/01 Complete ' Downstream Fisheries Studies and present to Council for approval. 2. Prepare Request for Proposals and solicit proposals for Seismic Study Peer 1/02 Complete Review. 3. Complete Seismic Study Peer Review and present results to the Council and 7/02 Complete ' State Water Resources Control Board. 4. Complete Downstream fisheries Studies and present results to the State 12/02 Complete ' Water Resources Control Board. Pursue All Options; and Use and Protect Groundwater 1. Approve budget for Water Conservation program including program 7/01 Complete , enhancements. 2. Complete Groundwater Basin analysis and present to Council. 9/01 Complete 3. Present Revised Nacimiento Pipeline EIR as prepared by the County to 1/02 6/03 ' Council for consideration. 4. Complete required environmental work for increased groundwater 7/02 3/04 production. ' 5. Solicit proposals and award contract for groundwater production and 12/02 9/03 treatment system design. 6. Complete initial analysis of opportunities for seawater desalination and 6/02 Complete present to Council with 2002 Water Resources Status Report. Complete the Water Reuse Project ' 1. Finalize concurrence on specific mitigation projects with the National Marine 9/01 Compete Fisheries Service. 2. Obtain commitment of State Revolving Fund Grant and Loan Financing from 9/01 Complete ' the State Water Resources Control Board. 3. Complete Phase I design. 12/01 Complete , 4. Award Phase I Construction contract. 7/02 1 4/03 Status Summary: 75% Complete. The majority of action plan activities listed are in progress or have been ' completed. 1 E-4 , ' IRI VA MANaciel.&I 16y. t • 1 MAJOR CITY GOALS Salinas Reservoir. The work has been completed relative to protection of the Salinas Reservoir water rights permit and compliance with State Water Resources Control Board (SWRCB) identified as objectives for this ' period. Nacimiento Pipeline. The County is proceeding with the preparation of the Revised Draft Environmental Impact ' Report for the Nacimiento pipeline project. Due to unavoidable delays associatedwith defining the project alignment, the County now estimates the release of the Draft EIR in March/April of 2003 and staff will present the draft to Council by June 2003. Groundwater and Other Options. A Groundwater development program was presented to Council on January 30, 2003. Based on direction from Council, budget for development of facilities required to pump and treat groundwater will be included in the 2003-05 Financial Plan. At this time staff anticipates completing the environmental review process concurrent with the design, which should begin work in September 2003 and be completed by March 2004. Current activities relative to groundwater development include locating and drilling of test wells, evaluating options to avoid impacts to riparian systems, and evaluating exchange opportunities and amounts. Water Reuse. Loan and Grant funding for the project has been secured from the State Water Resources Control ' Board. Plans and Specifications have been completed and approved by the SWRCB and Council. Staff anticipates award of a construction contract in April 2003 and construction to begin in the summer of 2003. Mitigation work for,the project is proceeding on schedule with a consultant recently hired for the design of the ' Coon Creek barrier removal project. Additionally, a consultant has been selected to develop a long range Water Reuse Master Plan to identify the logical extension of the water reuse distribution system over time. This master planning effort will be 50%grant funded up to$75,000. 1 1 I I E-5 Ask MAJOR CITY GOALS ' STREETS AND SIDEWALKS ! Objective. Continue implementing street paving and repair programs; and augment funding for sidewalk ' installations and repair, new street sign installations on arterials and tree planting in all available tree wells. Action Plan ' Task Original Revised 1. Continue the program of monitoring the condition of existing sidewalks. 2001-03 ' 2. Install street name signs at downtown arterial street intersections. 11/01 Complete 3. Install new sidewalks. 2001-03 4. Continue implementation of the 1998 Pavement Management Plan for 2001-03 ' Areas 5 and 6. 5. Continue to repair damaged sidewalks,curbs and gutters. 2001-03 ' 6. Inventory tree wells in the community that do not have trees installed. 11/01 Complete 7. Consider CDBG funding for Oceanaire-Huasna area. 4/02 Complete 8. Complete installation of all trees in empty tree wells. 6/02 Complete ' 9. Install new sidewalk on Higuera Street south of Elks Lane. 6/02 5/03 10. Complete installation of 130, 18"new street name signs at all arterial 7/02 2/03 intersections. ' 11. Complete installation of 510, 10"new street name signs at all arterial 6/03 8/03 intersections. Status Summary: 75% Complete. Area 5 street project is complete and Area 6 is planned for late spring and ' early summer. New sidewalks and repair of sidewalks budgeted for 2001 are complete. Due to other workload ' priorities established by the Pavement Management Plan, installation of new sidewalks on Higuera Street south of Elks Lane was delayed but is now under design and scheduled for construction in late spring. Contract for 130 new street signs was completed by February 2003 and the contract for 510 signs was approved for bidding in January 2003. ! ! ! ! E-6 ! ' MAJOR CITY GOALS LOS OSOS VALLEY ROAD IMPROVEMENTS ' Objective. Widen Los Osos Valley Road from Madonna Road to Highway 101; and begin preparing plans to widen the freeway overpass and fix difficulties between freeway exits/entrances and Calle Joaquin, improve flood ' structures and provide bicycle and pedestrian lanes over the freeway. Action Plan Task Original Revised ' Widening—From Madonna Rd to Hwy 101 1. Review,approve and issue permits for DeVaul Ranch North project. 7/01 Complete ' 2. Begin LOVR widening,signal installation/modification and minor drainage 7/01 Complete improvements. 3. Complete improvements. 7/02 2103 ' Interchange Improvements 1. Obtain funding for the EIR, Project Report and PS&E. 11/01 6/03 ' 2. Complete PSR-PDS. 5/02 6/03 3. Prepare RFP for the EIR and Project Report. 6/02 10/03 4. Obtain Caltrans approval of PSR-PDS. 8/02 6/03 ' 5. Begin EIR and Project Report. 10/02 1/04 Flood Improvements 1. Complete Waterways Management Plan. 12101 5/03 ' 2. Complete Storm Drainage Master Plan. 6/02 5/03 3. Incorporate drainage improvement requirements into the scope of work for 6/02 1/04 ' the Project Report. Status Summary: 25% Complete. The LOVR consultant has submitted preliminary traffic analysis for the ' interchange. The project has been significantly delayed due to modeling effort by the traffic subconsultant. All other technical reports are complete or significantly underway. DeVaul permits have been approved and the LOVR widening is under construction. Army Corps of Engineer permit issues have been resolved and the Froom Ranch street improvements are now commencing. At this time, there is insufficient funding for the initial ' engineering work for the LOVR interchange to provide full drainage evaluation; as such, it will have to be incorporated into the Project Report Phase. The Waterways Management Plan is 100% complete and is now in the process of having the EIR completed (See Flood Protection). The Storm Drain Master Plan, being prepared ' by staff,receives attention from staff when time among other CIP Projects allows. 1 ' E-7 ► M-613367.1 M • : ' MAJOR CITY GOALS , FLOOD PROTECTION ' Objective. Improve flood protection for residents and businesses,including alleviating impediments to carrying ' off floodwater and preserving flood plains. Action Plan ' Task Original Revised 1. Continue drop inlet maintenance program. 2001-03 , 2. Complete construction of lEguera Street Bridge. 10/01 Complete 3. Prepare plans to replace the Foothill/Stenner culverts. 12/01 Complete ' 4. Complete Waterways Management Plan. 12/01 5/03 5. Construct new bridge on Foothill Blvd at Stenner Creek. 1/02 9/04 6. Review flood plain preservation options. 6/02 Complete ' 7. Complete Citywide Storm Drainage Master Plan. 6/02 5/03 8. Submit a Notice of Intention to comply with the NPDES permit 3/03 ' Status Summary: 50% Complete. Design work on the Foothill Bridge is finished but awaiting permitting. , Completion is now anticipated for early fall 2004. The Waterways Management Plan is written but awaiting EIR approval. The draft EIR is now complete and has been forwarded to permitting agencies for comments, followed by subsequent public hearings and Council review in May 2003. Data collection for the Storm Drainage Master t Plan has been completed and is now being analyzed. Due to pending litigation in other jurisdictions, Council rescinded the Creek and Flood Protection Program fee schedule in June 2002, which resulted in significant delays in beginning implementation of the program. The drop inlet project for 2003 has been awarded and should be , complete by March 2003. E-8 , ' STATUS OF • OBJECTIVES ' MAJOR CITY GOALS ' RAILROAD RECREATIONAL TRAIL ' Objective. Continue planning and purchasing property for the Railroad Recreational Trail to Cal Poly; extend planning to the south connecting the Edna-Islay Area into the master plan; establish the Monro Street "SLO ' Street"from the Railroad District to Downtown;and pursue grant funding to complete these projects. Action Plan Original Revised ' Phase III: RRT from AMTRAK Passenger Terminal to Marsh Street 1. Pursue grant funding for design and construction. 2001-03 ' 2. Achieve UPRR support for the project and initiate property acquisition. 1/02 3/03 3. Complete conceptual plans and environmental review. 9/02 Complete ' 4. Complete property acquisition. 12/02 12/04 Phase IV:RRT from Marsh Street to Foothill Boulevard ' 1. Pursue grant funding for design and construction. 2001-03 2. Council approves route plan for trail. 7/01 Complete ' 3. Achieve UPRR support for project and initiate property actions. 1/02 3/03 4. Complete property acquisition. 4/03 12/04 RRT: Morro Street"SLO Street" ' 1. Complete conceptual design of bicycle boulevard. 12/01 Complete ' 2. Finalize project plans and specifications for traffic signal at Morro and Santa 7/02 4/03 Barbara and other minor improvement;complete environmental review; advertise for bids. ' 3. Complete project. 11/02 7/03 Status Summary: 15% Complete. The Consultant prepared plans for UPRR representatives on RRT Phase III ' to prove feasibility. UPRR is now reviewing those documents. Lack of grants for acquisition, design and construction for RRT Phase IV means limited progress for a long time to come. The ARC approved the Morro Street bike boulevard plans and environmental review and the design is now in progress. Construction is ' anticipated to start in late spring. ' E-9 AOL MAJOR CITY GOALS ' NORTH AREA REGIONAL FACILITY:A COMBINED PARKING AND TRANSIT FACILITY , Objective. Work with other agencies to acquire land for a multi-modal transportation center and parking ' structure,northeast of Santa Rosa Street between Monterey and Marsh Streets. Action Plan ' Task Original Revised Transit 1. Pursue discretionary grant funding for property acquisition and 2001-03 ' construction. 2. Begin negotiations for"right of entry"to the Shell Station property to 8/01 NIA , conduct Phase II hazardous material testing. 3. Begin conceptual design phase for the Transit Plaza. 11/01 Complete 4, ; begin Phase U 11/01 2/03 ' hazardous material study. 5. Complete appraisal of the Shell Station property. 1/02 4/03 ' 6. Complete draft conceptual design and environmental review;begin to hold 04/02 4/03 public workshops and advisory body meetings on proposed plan. 7. Council approves implementation plan. 10/02 6/03 , 8. Secure funding for property;begin negotiations. 1/03 6/03 9. Acquire property. 6/03 12/03 ' Parldn 1. Pursue County financial participation in the project. 2001-03 ' 2. Hire parking design consultant team to develop preliminary project 1/02 Complete conceptual plans; begin property appraisals for all remaining properties on ' block;begin environmental review of conceptual design. 3. Complete draft preliminary project conceptual plans, appraisals, 10/02 3/03 environmental review and financing plan. , 4. Begin holding public workshops and advisory body meetings on proposed 10/02 3/03 plan. 5. Council adopts implementation plan. 6/03 6/03 , E-10 ' AML MAJOR CITY GOALS 1 Status Summary: 15% Complete. Work efforts on this goal were delayed due to workload issues of other goals 1 and new workloads imposed by lawsuits against the City in other areas. As an alternative to gaining a right-of- entry to the Shell site, theL consultant will be placing perimeter monitoring wells to determine if there are migratory hazardous material issues with the site, which in tum will be used as a basis for property appraisals. 1 The County Board of Supervisors approved sharing in the cost of the Parking Study ($75,000) and their representative is participating in the project review as the consultant prepares various scenarios. It is anticipated that the Planning Commission will review the project in late winter with Council review in early spring. 1 1 1 1 1 1 1 1 E-11 1 MAJOR CITY GOALS 1 PARKING AND ACCESS ADVISORY BODY ! Objective. Explore establishing a Citywide parking and access advisory body. 1 Action Plan 1 Task Original Revised 1. Complete research into other jurisdiction's methods of similar advisory 7/01 to 10/01 Complete bodies;receive input from current advisory bodies on governance issues 1 with and between advisory bodies. 2. Hold Council study session to discuss advisory body issues, such as 12/01 Complete purpose,scope of duties,membership and staff support and receive 1 direction. Status Summary: 100% Complete. Council decided that duties of the proposed committee could be better 1 handled by a combination of the Council,the Planning Commission and Staff. 1 1 i 1 1 i i 1 1 E-12 1 IMAJOR CITY GOALS ATHLETIC FIELDS ' Objective. Explore the possibilities for additional athletic fields, including plans for two lighted softball fields. ' Action Plan Task Original 1. Begin assisting athletic organizations in renting fields. 7/01 Complete ' 2. Joint Use Committee begins bi-annual field improvement grant program 8/01 Complete 3. Study potential locations for new lighted softball fields. 1 /02 Complete ' 4. Pursue a joint-field lighting project. 1 /02 Complete 5. Present options to Council. 3/02 Complete ' 6. Complete joint use agreements with appropriate agencies. 6/02 Complete 7. Complete renovation of Santa Rosa Park. 12/02 6103 ' 8. Light existing softball fields. 6/03 8/03 9. Complete renovation of Stockton Field. 6/03 8/03 ' Status Summary: 60% Complete. Cingular Communications Co. will be responsible for completion of the Santa Rosa Park renovation project per the Council approved Agreement dated February, 2003. City and County staffs have discussed how to implement lighted softball fields at El Chorro County Park. City staff will hire a ' consultant to prepare plans for lighting the fields and utilize the County's JOC contractor to construct the field improvements. Stockton Field and Sinsheimer Stadium lighting upgrade is currently under design. 1 I 1 I 1 ' E-13 iAh • WIRM • : ' MAJOR CITY GOALS I RECREATION CENTER REMODEL: COMMUNITY-SENIOR CENTER ' Objective. Complete the remodel of the Recreation Center for community and senior uses. ' Action Plan ' Task Original Revised 1. Complete design and invite bids for construction. 12/01 Complete 2. Award contract and begin construction. 02/02 Complete ' 3. Complete remodel. 06/02 9/03 Status Summary: 60% Complete. A contract has been let and work should be completed by early fall. 1 1 E-14 ' AML ' • • A • ' MAJOR CITY GOALS ' CULTURAL SERVICES ' Objective. Continue funding for arts and culture;and identify long-range funding sources to secure the future of the Performing Arts Center. ' Action Plan Task Original Revised Continue Funding for Arts and Culture ' 1. Continue the current PCC grant program. 2001-03 2. Continue to support the City's formal cultural partnerships. 2001-03 ' 3. Continue to support the City's Art in Public Places program, with 2001-03 particular emphasis on facilitating the new developer contribution aspect of the program ' 4. Seek out outside grant funding for additional City cultural activities. 2001-03 5. Continue funding to County for Wednesday evening hours at City-County 2001-03 library. ' 6. Continue to provide administrative assistance funding to FOCA. 2001-03 7. Provide special assistance to FOCA in using Community Development 2001-02 2003 Block Grant funds for rehabilitation of the Rodriguez Adobe. ' 8. Begin rehabilitation of the Southern Pacific Freight Warehouse for use as a 5/02 8/03 railroad museum. ' Long-Term Funding for Performing Arts Center 1. Adopt revised PAC operations agreement and possible long-term funding 10/01 Compete agreement. ' 2. Begin implementing the PAC long-term funding plan. 2001-02 Complete Status Summary: 80% Complete. PCC grants for 2002-03 were awarded in August, 2002. Staff continues to ' meet monthly with the City's community partners, in particular the Friends of Prado Day Center, FOCA and the Downtown Association. A new two-year contract extension was approved for the Little Theatre in December and staff is working with the Children's Museum on parking in-lieu fees. Public Art In-lieu fees of$67,700 have been ' collected from private development projects and several projects have been processed. Staff processed Garnet, Ironroad Pioneers,Art on Buses,and Hey, Diddle, Diddle in conjunction with partners from the private sector and completed the purchase of Puck. Staff is researching opportunities for historical preservation grants for adobe ' restoration and railroad museums,and works with FOCA to manage CDBG funding for Rodriguez Adobe. In May 2002, staff reported to the City Council on the proposed Railroad Museum rehabilitation and received I direction regarding how to proceed. Pursuant to Council direction, staff is working with the consultant to prepare Phase I construction drawings that will be reviewed by the ARC prior to construction. Due to other projects' higher priorities,design work did not commence until January 2003 with construction now anticipated to begin in August 2003. IStaff completed work with the PAC partners on revisions to an operating agreement that includes a long-term funding plan. It received Council approval in May 2002. The budget for Fiscal Year 2002-03 has been built ' based on the new funding agreement. ' E-15 i III • • : t MAJOR CITY GOALS ' HOUSING ' Objective. Continue implementing programs to achieve the City's housing goals. Action Plan Task Original Revis—ed ' 1. Work cooperatively with Cal Poly and Cuesta College in creating more 2001-03 on-campus student housing. ' 2. Work cooperatively with the Cal Poly Foundation to facilitate construction 2001-03 of affordable faculty and staff housing. 3. Continue implementing the inclusionary housing program. 2001-03 , 4. Approve new housing proposed by the private sector that uses 2001-03 appropriately zoned land, is consistent with the General Plan and meets the ' City's inclusionary housing requirements for low and moderate income families, especially in the Margarita area. 5. Continue processing and review of the Orcutt Area Specific Plan. 2001-03 ' 6. Support the"Community Affordable Housing Fund"concept. 2001-03 7. Continue funding affordable housing programs through Community 2001-03 Development Block Grant program; and retain this as the highest priority ' use of these funds. 8. Evaluate the potential for added staff resources to seek affordable housing 12/02 Complete grant funding, new incentive and regulatory programs,and increased inter- ' agency coordination. 9. Begin updating Housing Element and affordable housing production 1/02 Complete targets. ' Status Summary: 85% complete. While many of this goal's activities are on going, work is generally on track with the action plan schedule: 1 1. On-Campus Housing. Although no real progress has been made in this area since the last goal update, the following report reflects progress to date. Cal Poly is proceeding with new construction of on-campus student ' housing. The City and Cuesta College staffs have held feasibility discussions and an economic feasibility study for on-campus housing has been completed. The Cuesta College Board is now analyzing the feasibility study as well as potential sites for on-campus housing. Staff continues to encourage both institutions to ' provide more on-campus housing. 2. Affordable Faculty and Staff Housing. City staff continues to work with Cal Poly staff and Foundation to ' explore both on- and off-campus student and faculty options. Two potential faculty/staff housing sites have been identified, with detailed design and environmental studies for one of the sites completed and approved by the University Regents. A neighborhood group has filed a lawsuit over that approval so the project is ' delayed. Next key steps involve continued discussions with neighbors, design refinement,recirculation of an amended Environmental Impact Report,and possibly,evaluation of additional sites. E-16 ' OF • OBJECTIVES MAJOR CITY GOALS I3. Inclusionary Housing. This program has been in effect since March 1999 and staff continues to implement the program. Key Council guidance on what constitutes "non-commercial development projects" providing community benefits, and on the use of the Affordable Housing Fund was provided in 2001 and is being applied to the program. The Affordable Housing Fund is assisting in the construction of 32 new affordable senior housing units at Judson Terrace. The balance of the fund as of.December 2002 was approximately $775,000. Additional refinements to the program may be brought forward as part of the City's Housing Element Update in 2003. 4. New Housing. Approval of residential projects is ongoing. Several residential subdivisions are under construction, following the residential growth management phasing schedule approved by the Council. The Margarita Area Specific Plan will be coming to the Council in 2003. The current draft plan provides for up to 880 housing units. 5. Orcutt Area Specific Plan. The draft plan includes significant provisions for expanding affordable housing. The plan has been redrafted to better meet the desires of the owners. The EIR will get underway in 2003 and the Draft Specific Plan will begin public hearings in FY 2003-04. 6. Community Affordable Housing Trust Fund Concept. The San Luis Obispo Supportive Housing Consortium has presented a proposal to establish an affordable housing trust fund to.the City Council. Community Development and Administration staffs are working with the Trust Fund directors on this project. The next steps will involve trust fund proponents identifying how such a program can be effectively funded. 7. CDBG Affordable Housing Programs. Use of CDBG funds for housing is expected to continue in the 2003 Program, and Council confirmed funding priorities at its November 12, 2002 hearing. The Human Relations Commission reviewed the CDBG applications in November, and Council is expected to act on those applications in March 2003. Staff has contacted owners of large properties to solicit interest in another Section 108 loan housing development project in the Downtown and received expressions of interest from three property owners. ' 8. Provide a Housing Programs Administrator. Per the Action Plan, staff is proposing the creation of a Housing Programs Administrator to lead city efforts to expand affordable housing. The Human Relations ' Commission has endorsed the idea, with the new position to be funded through the Community Development Block Grant Program This will be presented to the Council as a 2003-05 budget item for a full position housing planner. 9. Housing Element Update. A Regional Housing Plan has been adopted by SLOCOG, setting the housing needs allocations for the cities and the unincorporated County. The City will continue to work with SLOCOG and the League of Cities for state housing law reform Key steps will involve working with the recently appointed Housing Element Task Force to guide the Housing Element update process and preparing a draft housing element. I 1 E-17 • • : ' • • • • MAJOR CITY GOALS ' OPEN SPACE PRESERVATION Objective. Continue funding for open space and agriculture preservation, including management programs for ' open space lands and staffing for implementation of those plans. Action Plan ' Task Original Revised 1. Continue negotiating with willing property owners. 2001-03 ' 2. Continue planning and stewardship support(Land Conservancy& 2001-03 ECOSLO). ' 3. Contract with CCC and others for trail improvement and associated 2001-03 Complete resource protection at Bishop Peak Natural Reserve and possibly other sites. ' 4. Provide for additional half-time Park Ranger, and evaluate ranger staffing 2001-03 needs for newly acquired open space when Johnson Ranch is ready to be opened to the public. ' 5. Council adopts management standards(Conservation Guidelines)for City 2001-03 Complete open space lands. ' 6. Prepare and submit private,state and federal grant applications. 2001-03 7. Complete individual management programs for four City open space areas, ' tentatively identified as follows: a. Irish Hills (Prefumo,Foster, DeVaul open spaces) 1/02 4/03 b. Bishop Peak 6/02 8/03 ' c. Johnson Ranch 1/03 12/03 d. Cerro San Luis 6/03 4/04 ' Status Summary: 75% Complete. All projects are on track. Acquisition of the Foster and Johnson properties is complete. City accepted donation of a conservation easement for 180 acres on the Bowden property and staff ' anticipates dedication of fee title to the 180 acres plus an additional 27 acres as part of development approval of the Bowden Ranch Estates. Negotiations in varying stages of development continue with six major landowners around the City for conservation transactions. New contracts were signed with ECOSLO and Land Conservancy ' and work on those contracts is underway. The contract with CCC for trail improvements and restoration using County mitigation funds are both complete. Ranger Service staff has been increased by V2 FTE. The Conservation Guidelines were approved by the City Council on September 17, 2002. Grant submittals are ' ongoing. Staff anticipates the first open space management plan (for Irish Hills Natural Reserve) will be completed in April 2003,with others to follow on a four-month schedule. E-18 ' MAJOR CITY GOALS CIVIC OFFICES ' Objective. Complete development and environmental review, conduct construction oversight and management and when completed, purchase the Palm-Mono Parking/Civic Offices Building pursuant to the terms of a Guaranteed Maximum Price contract with Court Street Partners (the Copelands). Action Plan originalTask 1. Approve CIP to purchase the Palm-Morro Parking/Office Building and to improve 6/02 Complete ' the interior office space. 2. Open escrow for property transfers. 8/02 2003 3. Execute construction and development agreements with the Copelands. 9/02 2/03 4. Complete development and environmental review of the Palm-Morro 9/02 Complete ' Parking/Office Building. 5. Issue building permits for the Palm-Morro Parking/Office Building. 9/02 2003 6. Execute guaranteed maximum purchase price contract with the Copelands for the 9/02 2/03 Palm-Morro Parking/Office Building. 7. Close escrow and transfer title to Court Street and the Palm-Morro area. 9/02 2003 8. Begin construction by Copelands on Palm-Morro Parking/Office Building. 10/02 2003 9. Begin construction oversight and management for the Palm-Morro Parking/Office 10/02 2003 Building. ' 10. Complete design of tenant improvements for the offices in the Palm-Morro 6/03 2003 Parking/Office Building. 11. Complete construction of the Palm-Morro Parking/Office Building. 10/03 2004 ' 12. Purchase Palm-Morro Parking/Office Building from Copelands pursuant to the 10/03 2004 terns of the Guaranteed Maximum Price Contract. 13. Begin office tenant improvements. 2004 ' 14. Occupy offices. 2004 Status Summary: 50% Complete. On December 11, 2001, the City and Court Street Partners, LLC (the ' Copelands) entered into an Amended Memorandum of Understanding (the Amended MOU) outlining the terms and conditions for the development of the Court Street Project and the Palm-Morro Parking/Office Building. Development and environmental review of the Court Street Project and the Palm-Morro Parking/Office Building ' began on December 12, 2001 with the submission of project plans to the City's Community Development Department. A contract for construction management services for the City was entered into with Harris and Associates in April 2002. The Draft Environmental Impact Report for the project was published for public review ' and comment on May 20,2002. The Final Environmental Impact Report was certified by Council on September 17, 2002. The ARC granted final ' approval of the project designs on September 24, 2002. Final documents necessary to complete the real property exchange and contracts associated with the project are being prepared for anticipated Council consideration in February 2003. The final legal documents give Copeland until October 1, 2003 to close escrow and November 1, ' 2003 to begin construction on the retail portion of the projects. ' E-19 STATUS OF GOALS AND OBJECTIVES MAJOR CITY GOALS ' MAINTENANCE OF BASIC SERVICES t Objective. Preserve current service levels and adequately maintain existing facilities and infrastructure. ' Action Plan t Task Original Revised 1. Financial Plan. Prepare and approve 2001-03 Financial Plan that 7/01 Complete preserves current service levels,adequately maintains existing facilities , and infrastructure, is consistent with our adopted fiscal policies,funds new initiatives that we can sustain into the foreseeable future and ensures our long-term fiscal heath. ' 2. Interim Reporting. Closely monitor the City's fiscal condition through 2001-03 continued on-line access to fiscal information,monthly financial reports, quarterly financial newsletter and comprehensive reports, mid-year budget ' reviews,Financial Plan Supplement and special reports such as the quarterly sales tax newsletter. 3. Annual Financial Reports. Continue to issue annual financial reports in 2001-03 Complete ' accordance with generally accepted accounting principles. 4. Revenue Management. Ensure we are maximizing our current revenues 2001-03 by continuing revenue management programs like the business tax and , transient occupancy tax (TOT)review programs,sales tax monitoring and user fee updates. Status Summary: 95% Complete. We are on-track in completing all Action Plan tasks: , 1. Financial Plan. Finalized the 2001-03 Financial Plan and prepared the Budget-in-Brief. , 2. Interim Reporting • Issued quarterly financial reports and sales tax newsletters. ' • Initiated Monthly TOT Newsletter. • Prepared a Fiscal Health Contingency Plan and initiated"Stage 1: Short-Term Problem Assessment" action steps: hiring chill;training chill; in-depth CIP review; and in-depth operating program review. ' • Prepared 2001-02 Mid-Year Budget Review (approved by the Council on February 26, 2002). • Prepared the 2002-03 Financial Plan Supplement and Budget-in-Brief(approved by the Council on June 18,2002). ' • Prepared the 2002-03 Mid-Year Budget Review(approved by the Council on February 18, 2003). 3. Annual Financial Reports , • Prepared and distributed the Comprehensive Annual Financial Report(CAFR)for 2000-01 (reviewed by the Council on December 11, 200 1)and for 2001-02(reviewed by the Council on December 10,2002). • Developed and began implementing strategy for complying with a major change in financial reporting ' requirements("GASB 34"), which will be effective for 2002-03 (approved by the Council on June 18, 2002). E-20 ' MAJOR CITY GOALS 4. Revenue Management. Updated user fees for 2001-02 and 2002-03;completed a formal assessment of TOT review program and decided to continue it;business tax and TOT reviews are underway and ongoing; worked closely with Utilities in comprehensively updating water and sewer development impact fees;and initiated an update of transportation impact fees, which will be presented to the Council for approval in Spring 2003. 1 1 ' E-21 STATUS OF • OBJECTIVES OTHER COUNCIL OBJECTIVES ' LAGUNA LAKE MASTER PLAN been incorporated into the City's newly adopted ' ARC guidelines. Objective. Continue implementation of Laguna COURT STREET PORTION ' Lake Park Master Plan. OF THE COPELAND'S PROJECT Status Summary: 5% Complete. The first phase ' of the Master Plan is complete. During the 2002-03 Objective. Complete the mixed-use portion of the budget process, the budget for this project was Copeland's Project on Court Street. ' reduced by $75,000. Further work on this project is to be deferred due to a shortage of available funding. Status Summary: 50% Complete. On December 11, 2001, the City Council amended the existing CENTRAL COMMERCIAL Memorandum of Understanding between the City ' ZONE EXPANSION and the Copeland's regarding the Court Street project. On December 12, 2001, the Copeland's submitted plans for review. The project has received , Objective. In accordance with the Conceptual its regulatory approvals including Council's Physical Plan for the City's Center, expand the certification of the Final Environmental Impact Central Commercial (CC) zone and in-lieu parking Report on September 17, 2002 and the ARC final , district northeast to the railroad tracks and southwest approval of project design on September 24, 2002. to Marsh and Higuera Street intersection. Construction at Court Street will begin after final contractual agreements have been executed by the , Status Summary: 85% complete. The Planning City and Copelands and after Copeland has provided Commission has reviewed the draft set of ordinance notice of readiness to begin the project, anticipated changes, including the proposed expansion of the in late Summer 2003. , City's Central Commercial (C-C) Zoning District and has provided direction to staff and our planning HISTORIC PRESERVATION consultant. The Planning Commission will hold final public hearings on the revised hearing draft on ' February 12`h and March 12'h, 2003. The next step Objective. Consider restoration of funding for low will be review by City Council as early as April or interest loans and seek grants for preserving historic May 2003. In addition to the progress on the properties, including funding restoration of adobes. ' expanded C-C zone district, the City Council adopted an ordinance on September 17, 2002 that Status Summary: 65% complete. The Historic created a downtown parking in lieu fee area, which Rehabilitation Loan Program was designed and ' also accomplishes this objective. presented for budget consideration last year, based on the City's experience of offering a similar LARGE BUILDING program in the 1980's and as recommended by the DEVELOPMENT STANDARDS Cultural Heritage Committee. Coast National Bank agreed to participate with the City in re-establishing the loan program. Implementation details, including , Objective. Adopt design and review standards for city staffing,remain to be worked out. large buildings that address siting, landscaping, parking access and building design, along with Although this program was not specifically funded natural space conditioning and lighting standards. in the 2001-03 Financial Plan, staff continues to ' review potential grant funds that could support Status Summary: 100% Complete. The City preservation and restoration of historic resources. Council adopted the guidelines at their November 6, On an ongoing basis, staff and the Cultural Heritage , 2001 Council meeting. The design guidelines have Committee review public and private development E-22 ' ' OTHER COUNCIL OBJECTIVES project proposals for possible grant eligibility as CONVENTION CENTER STRATEGY well as for compliance with city, state and federal historic preservation policies. This program is recommended to be put on hold pending completion Objective. Develop a strategy in cooperation with of the Housing Element. other agencies for a convention center in the City, convenient to other cultural/visitor resources. DOWNTOWN PEDESTRIAN LIGHTING PLAN Status Summary: 10% Complete. Preliminary analysis indicates that accomplishing this objective would require a significant investment of both staff Objective. Establish a historic downtown time and financial resources. Most successful ' pedestrian lighting plan for the Downtown in convention centers require subsidies from the city in cooperation with the Downtown Association. which they are located, which San Luis Obispo is unable to provide. Status Summary: 10% Complete. The Council ' has taken action to set the color of the lighting However, we recognize that conferences and small fixture. The CHC has reviewed the proposed fixture conventions are important to the City for several twice and will review lighting patterns in the future. reasons, and we will continue to work with the VCB ' Two different fixtures have been installed on to attract appropriate-sized organizations to our Higuera Street to allow a full evaluation by the DA, existing hotels and motels. It is also possible that CHC, the ARC and the City Council. Council action should a hotel eventually be built on the Dalidio to adopt a light fixture and pole design is expected property, the City could assist in building a this Spring. relationship between it and existing hotels in the Madonna Road area, especially with the Embassy ' Suites,to create a small de facto convention area.. In light of the City Council's recently identified 2003-05 Major City Goal to increase Transient Occupancy Tax Revenue, a formal work program including a Convention Strategy, will be developed.. I E-23 :CEIVED FEB 1 1003 MEETINU' AGENDA DATE I D3 ITEM # 012 Liaison Report SLO CITY CLERK COUN IL 2 CDD DIR ICAO jjFIN DIR February 11, 2002 ZACAO FIRE CHIEF ZATTORNEY PW DIR 8 CLERK/ORIC3 2 POLICE CHF TO: Council collea ❑ DEPT EADS td REC DIR From Ken Schwartz p Z UTIL DIR Re: Downtown Board of Directors Meeting, F _1 Z HR DIR Copies: Ken Hampian, endy George,Betsy Kiser The February Board meeting was highly structured and conducted very efficiently. These are some of the highlights: Deborah reported that the DA has a budget of approximately$500/mouth to provide PR info for the upcoming "Century(utilities)Project." Everyone seemed pleased with both City and contractor cooperation to date. March will see elections for six new Board positions;interestingly, 5 of the 6 candidates were present at this meeting. March will also see the annual retreat take place;there was some joking that they now must hold the retreat within the city limits—no more Mulligan's at Avila. Independent businesspeople have a hard time understanding Brown Act requirements when they sit on a "city"advisory committee. Interestingly,two downtown `events' received considerable discussion—the car show and Mardi Gras. There is concern that neither of these events really brings customers into the downtown. Pedestrian lighting is continues to hold broad Board interest,but there is realization that the lighting system still is not fully designed nor costed out and consequently is not likely to be realized quickly. Work on `Taste of San Luis' for '03 is,getting underway. The theme this.year will be Out of Africa. Committee reports were pretty routine. The owner of Koffe Klatsch was present to register a complaint about music at the Thursday Night Farmers' Market—both the type of music and the sound level were characterized as inappropriate. Staff reviewed how bands were selected and then instructed as to basic rules(I was impressed but that it was impossible for DA staff to be at the band's gig to continually police the rules. The end result is that bands that don't adhere to the rules simply will not get to perform again. Incidentally,Beautification Awards have been moved from the Council's February 1 e meeting to a.meeting is March. I was invited to comment and brought the Directors up to date regarding the status of the Copeland projects,our goals setting work and the C of C's hosting of Julie Bornstein of HCD. RED FILE RECEIVED Liaison Report M�,EEETIpG AGENDA a. FEB 1 2003 DATE4 ITEM # SLO CITY CLERK February 18, 2003 To: Council Con From: Ken Sch Copies: Ken Hampian, George,Mille McCluskey,John Mandeville Re: SLOCOG g, February S, 2003 New officers for the upcoming year were seated•,they are Peg Pinard, Chair and Paso Robles Mayor, Frank Mecham, Vice chair. Peg and Frank along with Dave Elliott, immediate past chair make up the Executive Committee. Caltrans Director, Greg Albright, reported on"context sensitive design"and the efforts he will be exerting in our local Caltrans office to implement this `new thinking'-on the partofhis staff Greg also commented on Caltrans'new flexibility in dealing with main street issues where State highways constitute a community's Main Street. Ofparticular interest-to SLO-was the report that bids for the Brizzolara Street Sound Wall were opened .January 6P;estimated cost: $1.370 million. No info.waspresented.re: a.successful bidder. The largest time segment of the meeting was taken up by public testimony on unmet transit needs. The most numerous `complaints' were the frequency ofbuses(too much time between runs),lack ofnight-time service, and lack ofinterconnecting bilge routes. COG staffwill do an analysis ofneedspresegorally and in written form and report back to the Board in March. The question of Regional Jets and the need to extend the SLO County Airport runways to accept these new aircraft generated a number of statements from Board members and north council public. No question,Paso Robles feels strongly that their airport which has runways long enough to accept RJ's should be designated as the principle commercial airport. SLO will need to take some aggressive steps or risk the consequences of losing our commercial air traffic. The Board also adopted a list of legislative positions—nothing surprising. The Ifighway One Median Barrier project is progressing. Caltrans will be asking their headquarters for permission to do a `sole-source' bid based on the design our local review committee has recommended which requires unique equipment to put that barrier into place. COG also agreed to enter into a contract to have seven of its meetings videoed for increased public exposure. 0 COUNCIL E:CDD D0R ErCAO JZ FIN DIR ID ACAO g FIRE CHIEF D'ATTORNEY B PW DIR Q CLE%0RIG 2TOUCE CHF ❑ DEPT HEADS Pf REC DIR ZUTIL DIR Pf �it`1_ eHRHR DIR SAN LUIS OBISR, I. OUNCIL OF GOVERNMENTS MEM. _ .tSHIP (1/8/2003) ` Down the Road...The next scheduled meeting of the SLOCOG Board will be held in the San Luis Obispo Board of Supervisors' Chambers Wednesday, March 5,2003,immediately following the SLORTA meeting. New Officers Elected: At the January meeting, Supervisor Peg Pinard was elected President, and Mayor Frank Mecham was elected Vice President. The Executive Committee membership will include the newly elected officers and the Past President, Council Member Dave Elliott. Past President Elliott will continue representing SLOCOG at the California Association of Councils of Governments (CALCOG), and President Pinard will serve as alternate. President Pinard will also represent SLOCOG as the rail representative, and former Board Member Fred Munroe will remain as alternate. The San Luis Obispo Council of Governments(SLOCOG) is an area wide planning and programming agency for issues of area wide concern. SLOCOG is also the state-designated Metropolitan Planning Organization(MPO), the state- designated Regional Transportation Planning Agency(RTPA), the Service Authority for Freeways and Expressways (SAFE), and the Census Data Affiliate (CDA)for the San Luis Obispo region. Member Agencies are listed below with designated representatives. President—Peg Pinard, Supervisor District 3 Vice President—Frank Mecham, Mayor, Paso Robles RED FILE Past President—Dave Elliott, Council member,Morro Bay MEETING AGENDA Arroyo Grande— Tony Ferrara, Council Member Atascadero— Wendy Scalise, Council member DATE94i47 ITEM L 2 Grover Beach—Dave Ekbom, Council member 4110Ci Pismo Beach—Rudy Natoli, Mayor San Luis Obispo—Ken Schwartz, Council member District 1 Supervisor—Harry Ovitt District 2 Supervisor—Shirley Bianchi District 4 Supervisor—Katcho Achadjian District 5 Supervisor—Mike Ryan Ex-Officio, Gregg Albright—Director, Caltrans District 5 Ronald De Carii, Executive Director SAN LUIS OBISPO COUNCIL OF GOVERNMENTS 1150 Osos Street, Suite 202, San Luis Obispo, CA 93401 http.1Avww.slocog.org1 Wil, 'LI(/ Jn City of San Luis Obispo Ken Schwartz,Council Member 990 Palm St. h x San Luis Obispo,CA 93401 Cd-COUNCIL ❑-CDD DIR 2-CAO ('"FIN DIR ❑AtAO D-FIRECHIEFRECEIVED ❑�CTTORNEY CT-PW DIR O-CLERK/ORIG aPOUCE CHF ❑ DEP H�A DS �REC DIR FEB 13 2003 _ I/5 GUTILDIR ❑ [HR DIR SLO CITY COUNCIL Barrier Resembles Outcroppings of The Morros Leaving north from San Luis Obispo on Highway 1, motorists are presented with breathtaking views. This State Scenic Highway travels past a unique volcanic chain of mountains known as The Morros (aka The Seven Sisters); beginning with Cerro San Luis and ending with Morro Rock. One of the most heavily traveled segment of this corridor is between San Luis Obispo and Cuesta College with a daily average of 26,000 - vehicles. This five-mile stretch of highway has _ narrow median widths Photo Simulation of Median Barrier with Surface Texture Treatment and has experienced an increase in cross median accidents. Caltrans has secured funding to construct a concrete barrier in this location providing a much anticipated safety treatment to this roadway. Balancing the pressing need for safety and the regional importance of this scenic corridor, the SLOCOG Board programmed $400,000 last March as a catalyst for Caltrans to include the design of surface treatments to the barrier that reflect the values of the community. A Caltrans design team, working with community stakeholders, is proposing an innovative and cost effective surface treatment known as Slip-Stone. Wall colors of the barrier will be drawn from the outcroppings of the Morros, and texture will be continuous over the top of the barrier. SLOCOG BOARD HEARS UPDATE ON STATE BUDGET CRISIS AND TRANSPORTATION FUNDING SHORTFALL At the February meeting the Board received a report on the State budget deficit and its impact on transportation funding. Staff have been monitoring the status of the State's $35 billion deficit to address the effects on transportation funding to the San Luis Obispo region. In December,the Governor proposed a $10 billion reduction in the use of General Fund revenue by various programs including$1.8 billion in transportation cuts. Most of the proposed cuts to transportation were as follows: ✓ Returning or suspending $1.1 billion in funding allocated for projects in the Traffic Congestion Relief Program (TCRP) to the General Fund. ✓ Eliminating about$200 million of FY 02-03 Proposition 42 payments to local agencies. ✓ Deferring$550 million in loan payments the General Fund owes to transportation funds. State Budget Deficit— In terms of the proposals directly related to the State budget deficit,transportation programs in the San Luis Obispo region are not expected to be significantly impacted. Our region did not have any major projects programmed in the TCRP, unlike major urban areas, so we will not be experiencing the cuts being experienced by other areas of the State. The County and cities in the region may, however, be subject to the proposed reduction of Proposition 42 funding for local street and roads, and the region may not receive some of the expected increase in funding for transit services and future programming capacity in the Regional Transportation Improvement Program (RTIP). The County and cities have received the first quarter subvention in funding for street and roads and are planning future subventions expenditures. STIP Funding Shortfall— About the same time the State budget deficit issue was being revealed, it was also announced that the 2002 State Transportation Improvement Program (STIP) is underfunded by about $1.3 billion in the current year and up to$4 billion over the entire five years of the program. This situation is largely due to the following factors: r A projected adjustment of$125 million in the Federal Revenue Aligned Budget Authority (RABA) is not expected to occur in each of the next five years totaling $566 million. (A lobbying effort is underway to make the adjustment happen. SLOCOG staff are coordinating efforts with Congresswoman Capps and Congressman Thomas.) A previously expected 20% increase in Federal transportation funds in FY 03-04 will not occur. (SLOCOG.staff are addressing efforts with Congresswoman Capps and Congressman Thomas and the entire California Congressional Delegation to address this situation) r Implementation of a new truck weight fee system is now expected to result in a shortfall of$446 million per year. (The Governor has submitted legislation to address this situation, and SLOCOG staff will be working with Senator McPherson and Assemblyman Maldonado to support the bil! . For more information on this issue,please call Mike Harmon at 781-5724. Board Adopts State aric Federal Legislative Programs At its February 5th meeting, the SLOCOG Board adopted State and Federal SLOCOG—Coming to Legislative programs for the. year 2003. The objectives and policies of these a Channel Near You programs are designed to .provide SLOCOG staff with policy guidance for Steve Mathieu, Nancy responding to proposed legislation, as well as administrative policies and Castle, and the production guidelines. The program is based on five overall objectives: crew at AGP Video will 1. Project Programming-- Preserve existing funding formulas and programming become "regulars" at flexibility of State Transportation Improvement Program (STIP). SLOCOG meetings, and, 2. Existing Funding — Protect, enhance, and maximize flexible use of current thanks to their efforts, funding (also Federal Objective 1). 3. Supplemental Funding — Increase transportation revenue and funding sources SLOCOG meetingswill be to enhance ability of region to implement its transportation plans. available for viewing in 4. Project & Program Delivery— Reform administrative policies and procedures to homes around the county. improve delivery of transportation projects, programs, and services (also Federal Video production of public Objective 2). meetings is a growing 5. Community Development — Provide local governments with resources opportunity to maximize necessary to effectively implement their community development plans. public participation in the At the State level, the most important need is to address the diversion of governmental decision- transportation funds to help reduce the State budget deficit. In this regard, a new policy has been added under the Existing Funding objective calling for legislation making process. to assure eventual and timely repayment of transportation funds currently loaned Jurisdictions currently to the general fund and to eliminate further diversions. SLOCOG staff have been taping governing board working with Caltrans and other regional agencies throughout the State to meetings include the address this difficult issue in a fair and equitable manner. County Board of In recognition of the difficulties the region had with the State Department of Supervisors, and the cities Housing and Community Development last year, a new policy has been added of Arroyo Grande, Grover under the Community Development objective calling for reform of the Regional Beach, Morro Bay, Pismo Housing Need Allocation process. In this regard, SLOCOG staff have been Beach, and San Luis working with the League of Cities, the California State Association of Counties Obispo. Meetings will be (CSAC), and other regional planning agencies to develop the proposed reform broadcast live and replaved measures. In order to address issues of concern at the Federal level, SLOCOG staff on Channel 21. have been working with other regional agencies to develop a common position for AGP Video the reauthorization of the Transportation Efficiency Act for the 21s' Century (TEA- videotaped the January 8`h 21). This act is set to expire in October of 2003. Many of the policies of the and February 5th SLOCOG Federal legislative program are therefore focused on provisions to be included in and SLORTA meetings at the new Act. no charge to SLOCOG and If there are any questions on either the State or Federal Legislative SLORTA. Copies of the programs, please call Mike Harmon at 781-5724. meetings will also be Regional Jet Study offered for replay on the The report titled the "Economic and Operational Analysis of Regional SLO-Span Channel 20 in Jets" was presented to the SLOCOG Board on February 5th. The report Morro Bay, Pismo Beach, indicated that carriers will replace their turboprop aircraft with regional jet Arroyo Grande and Grover aircraft within the next two years. The studies undertaken as part of the Beach. AGP managed report indicated there are no significant impacts to air quality or increased channels are collectively noise levels associated with the introduction of regional jets. The report also referred to as the SLO- indicated that the main runway should be lengthened by 500 to 700 feet. Span Network.. AGP The current trend in the aviation industry is a shift to regional jets. The Video maintains a website way the airport prepares for this transition has several ramifications for air at wwwHslo-span.org with travel in this area. The introduction of regional jets would provide additional information about the benefit by making more destinations viable, travel more comfortable, and an channels, programming additional $170,000 per year to the County. The SLOCOG Board approved schedules, as well as links the report and directed it be distributed to the various planning agencies to a wide variety of within the County, and that the County include the extension as part of the governmental websites. Airport Master Plan Update and Airport Capital Improvement Program. For more information about the regional jet study, please call Pete Rodgers at 781-5712. Newsletter of the San Luis Obispo Council if Governments * VoL X Issue 2 THE COORDINATOR Febru2003 * 1150 Osos Street Suite 202 SLO CA 93401 * Phone 805-781-4219 * Fax 805-781-5703 BOARD MEMBERS RECOGNIZED FOR THEIR CONTRIBUTIONS Unmet Needs Hearing At the January meeting, former Board Member Mike Arrambide, Atascadero, The Board received 130 accepted a resolution of appreciation for his service (below right). At the requests from more than February meeting, former President Dave Elliott, Morro Bay, accepted a 300 individuals by phone, plaque recognizing his service as President during the 2002 calendar year letter, email, or at the public (below left). hearing on February 5h. The bicycle requests (petition signed by 79 citizens) will be forwarded to the jurisdictions. Key transit requests were: • Require funding for Avila Beach weekend trolley service. ■ Increase Transportation Development Act (TDA) funds for the senior 71 Cambria Community Bus. • Expand CCAT weekend service to evenings and add Sunday service. • Provide adequate and Regional Housing allocation Plan Adopted convenient parking for At their January meeting, the SLOCOG Board adopted the Regional North County vanpoolers. Housing Needs Plan. This plan assigns a portion of the state's mandated • Secure stable funding for "housing need" for the San Luis Obispo region as an allocation to the Cuesta Grade vanpools Unincorporated County and each of the seven cities. These allocations must following construction. be incorporated into the Housing Element Update that the jurisdictions are • Improve ADA Runabout required to complete by December 31, 2003. The assigned units are broken service between down into four income categories (Very Low, Low, Moderate, and Above Achievement House and Moderate). Adequate zoning must be accommodated within the Land UseLos Osos. Element of each community's General Plan to allow for the assigned allocation • Provide evening service to be developed within the planning time period of 2001 to 2008. on SLO Transit, optimizeday service with reliable The following table lists the allocation by income category for each service, stagger runs on jurisdiction: routes with common legs, and display route JANUARY 2003—SLOCOG REGIONAL HOUSING NEEDS ALLOCATION numbers and schedules Units by Income Category at all bus stops. Jurisdictions Very Above The SLOCOG Board directed Low Low Moderate Moderate Totals staff to review the requests Arroyo Grande 310 223 259 400 1,192 based on criteria adopted in Atascadero 345 254 304 456 1,359 January to determine which Grover Beach 178 142 166 200 686 unmet needs are also Morro Bay 185 122 129 162 599 "reasonable to meet." Staff Paso Robles 627 467 520 1 651 2,266 will present the initial findings Pismo Beach 150 102 105 173 531 at the March 5th meeting. San Luis Obispo 1,484 844 870 1,185 4,383 Findings will be presented at CountyUnincorporated 1,029 778 929 4,284 7,020 the April 2nd meeting for Total Units 4,308 2,933 3,283 7,511 18,035 Board approval.