HomeMy WebLinkAbout02/15/2005, BUS 1 - 2004-05 MID-YEAR BUDGET REVIEW Y
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CITY OF SAN LUIS OBISPO
FROM: Ken Hampian,City Administrative Officer "'
Bill Statler, Director of Finance & Information Technology
Carolyn Dominguez,Finance Manager
SUBJECT: 2004-05 MID-YEAR BUDGET REVIEW
CAO RECOMMENDATION
1. Review and discuss the City's financial condition at the mid-point of 2004-05.
2. Approve revenue and expenditures changes presented in the accompanying Mid-Year Budget
Review document,including added General Fund appropriations of$70,000.
DISCUSSION
The accompanying Mid-Year Budget Review for 2004-05 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 General Fund revenue and expenditure trends since
adoption of the 2004-05 budget in June 2004. It also includes supporting documentation for the
recommended mid-year budget adjustments.
Overview: How Are We Doing?
Consistent with the five-year General Fund forecast presented to the Council in December 2004,
revenue trends are down in several of our key sources compared with original budget estimates,
most notably sales tax, utility users tax, development review fees and investment earnings..
Fortunately, most of the impact of the reduction in those
revenues is offset by some positive trends: property tax, and
bowns�_' Summary
transient occupancy tax and franchise fees are doing better At the end of the Transmittal
than projected in the original 2004-05 budget. Memorandum is a one-page
overview of our projected ending
The net result of these revisions—including recommended financial condition for the General
budget requests—is a projected ending General Fund Fund at June 30, 2005 that
balance that is slightly higher. (by $64,800) than the summarizes"where we're up"
December 2004 forecast: The ending fund balance and "where we're down'from our
remains at 16% of operating expenditures compared with initial estimates in the
our minimum fund balance policy of 20%. Financial Plan Supplement. 5
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
( J I
i 1
2004-05 Mid-Year Budget Review Page 2
quarterly financial reports are distributed to the Council and staff on an ongoing basis. Additionally,
we issue focused reports to the Council and staff on key revenues such as sales tax, transient
occupancy tax and investments,as well as ad hoc reports as needed.
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. Updating beginning fund balance projections based on actual results for the prior fiscal year.
2. Analyzing revenue trends since adoption of the Financial Plan, and revising revenues and
ending fund balance projections accordingly.
3. Identifying and presenting any fiscal problem areas to the Council, and recommending
corrective action or additional funding if required.
4. Presenting the status of major City goals, capital improvement plan projects and other important
objectives.
Report Organization
The accompanying Mid-Year Budget Review is organized into five main sections:
Section A: Transmittal Memorandum, which provides a concise review and analysis of the
City's financial position and summarizes requested midyear budget adjustments.
Section B: Comprehensive presentations of projected revenues, expenditures and changes in
fund balance/working capital for each of the City's funds for 2004-05 compared with
original budget estimates and actual results from 2003-04.
Section C. Detailed supporting documentation for the requested mid-year budget adjustments.
Section D. Recent financial and revenue reports: Quarterly Financial Newsletter, Sales Tax
Newsletter and Monthly TOT Report.
Section E. Status reports on major City goals, other Council objectives and major CIP projects.
This includes recommended"Action Plan"revisions,which are fully discussed in the
report.
ENCLOSURE
Mid-Year Budget Review for 2004-05
G:Budget Folders/Mid-Year Budget Reviews/Mid-Year Budget Review,200405/Council Agenda Report
city of • i P •
BUDGET REVIEW
for the 2003=05 Financolal Plan
2003=05 Financial Plan
MID-YEAR BUDGET REVIEW: 2004=05
DAVID ROMERO,MAYOR
JOHN EWAN,VICE-MAYOR
PAUL BROWN, COUNCIL MEMBER
CHRISTINE MULHOLLAND, COUNCIL MEMBER
ALLEN SETTLE, COUNCIL MEMBER
KEN HAMPIAN, CITY ADMINISTRATIVE OFFICER
Prepared by the Department of Finance&Information Technology
Bill Statler,Director/City Treasurer
Carolyn Dominguez, Finance Manager
cityo San lues OBISPO
TABLE OF •
A Transmittal Memorandum Enterprise Funds
Water B-30
Overview A-1 Sewer B-31
Financial Condition Summary A2 Parking B-32
Mid-Year Budget Requests A-3 Transit B-33
Prospects for the Future A-4 Golf Fund B-34
Status of Goals and Objectives A-4 Whale Rock Reservoir B-35
Conclusion A-4
General Fund Financial Condition
Summary: Ups and.Downs A-5 C. Mid-Year Budget Requests
B. Financial Condition Summaries Summary of Mid-Year Budget Requests C-1
Significant Operating Program Changes
Facility Use Fees for
Revenues by Fund B-1 Recreation Programs C-2
Operating programs B-8 Revenue Ballot Measure
Capital Improvement Plan B-9 Feasibility Analysis C 5
Capital Improvement Plan Projects
Interfund Transactions Short-Term Mosquito Abatement
Operating Transfers B-10 Services for Laguna Lake C-8
Reimbursement Transfers B-12
Changes in Financial Position --
D. Recent Financial and Revenue Reports
Combined Statements - -
All Funds Combined B-13 Quarterly Financial Newsletter:
Governmental Funds B-14 December 2004 D-1
Enterprise and Agency Funds B-15 Sales Tax Newsletter:
General Fund B-16 Third Calendar Quarter 2004 D-3
Monthly TOT Report:December 2004 D-4
Special Revenue Funds
Downtown Association B-17
Gas Tax B-18 E. Status of Goals and Objectives
Transportation Development Act B-19
CDBG B-20 Introduction E-1
Law Enforcement Grant Fund B-21 Status of Major City Goals E-4
Capital Project Funds Status of Other Council Objectives E-19
Capital Outlay B-22 Status of Major CIP Projects E-21
Parkland Development B-23
Transportation Impact Fee B-24
Open Space Protection B-25
Airport Area Impact Fee B-26
Affordable Housing B-27
Fleet Replacement B-28
Debt Service Fund B-29
TRANSMITTAL MEMORANDUM
TRANSMITTAL MEMORANDUM
February 15, 2005
TO: City Council
FROM: Ken Hampian,City Administrative Officer
Bill Statler, Director of Finance&Information Technology
Carolyn Dominguez, Finance Manager
SUBJECT: MID-YEAR BUDGET REVIEW FOR 2004-05
OVERVIEW Council on December 14, 2004 as part of the 2005-
(: { 07 Financial Plan process. As discussed below, the
only notable exception are revenue estimates for
In monitoring our fiscal condition, we provide development review fees: the Forecast projected
ongoing financial information through a variety of these to be about$800,000 less than 2004-05 budget
methods, including on-line access to up-to-date estimates. While still less, we have revised the
information, "hard copy" monthly reports, quarterly reduction to$495,000.
financial newsletters, and focused reports on key
fiscal indicators such as sales tax, transient At the end of this Transmittal Memorandum is a
occupancy tax(TOT)and investments. one-page overview of our projected ending financial
condition for the General Fund at June 30, 2005 that
In addition to these, the City's Budget and Fiscal summarizes "where we're up" and "where we're
Policies also call for preparing a formal report to the down" from our initial estimates in the 2004-05
Council every six months on the City's financial Budget.
status. This allows us to take a broader look at our
financial picture at the mid-point of the fiscal year Continued Tough Times Ahead Due primarily to
by: added State takeaways—totaling$1.5 million in 2003-
05—our fiscal position is not as strong as we projected
1. Updating beginning fund balance projections in the 2003-05 Financial Plan. Nonetheless,compared
based on actual results for the prior fiscal year. with many other cities in California, we are well-
positioned to deal with the challenges facing us. This
2. Analyzing revenue trends since adoption of the is only true because of the steps we have taken over a
Financial Plan, and revising revenues and number of years to ensure our fiscal health
ending fund balance projections accordingly.
Most recently, these include closing a $7 million
3. Identifying and presenting any fiscal problem annual budget gap as part of the 2003-05 Financial
areas to the Council, and recommending Plan process(largely through expenditure reductions);
corrective action or additional funding if and revisiting the budget again to due to even more
required. State budget grabs. This meant making additional
expenditure cuts (most notably in our paving
This is also an opportunity to provide the Council program); and for the first time since we adopted our
with a formal update on the status of major City minimum reserve policy fifteen years ago of 20% of
goals, capital improvement plan (CIP) projects and operating expenditures,we dropped below this to 16%.
other objectives.
While this is significant in signaling the tough fiscal
Summary of Findings and Conclusions times facing us, it is also consistent with the strategy
adopted as part of the 2003-05 Financial Plan: to use
The updated revenue and expenditure projections our reserves as the first line of defense against State
reflected in the mid-year review are generally budget takeaways.
consistent with the results of the recent five-year
General Fund forecast (Forecast) presented to the
A-1
TRANSMITTAL MEMORANDUM
General.Fund Focus is $173,900 (1.5%) less than the original 2004-05
budget.
This mid-year budget review primarily focuses on
programs and projects financed through the General Property Tax. Consistent with the Forecast, we
Fund. Consistent with the City's policy of annually have increased this projection by 3% ($190,900),
reviewing our enterprise fund rates,a comprehensive based on property tax revenue estimates provided by
analysis will be presented on June 2, 2005 the County, combined with likely increases from
addressing rate and revenue issues in the water, supplemental assessments.
sewer,parking,transit and golf funds.
Transient Occupancy Tax. We are retaining our
Limited Mid-Year Budget Requests projection for 3% growth. However, this is applied
against an actual "base" in 2003-04 that was greater
Given our current fiscal outlook for 2004-05 and than original budget estimates. This results in
beyond, we have only proposed mid-year budget revised estimate that is consistent with the Forecast.
requests that are essential to meet costs that were not
anticipated when preparing the 2004-05 Budget. Utility Users Tax. Consistent with the Forecast, this
�y
These requests, which are discussed in greater detail revenue source has been reduced by $157,300 (4%)
below, need to be approved now in order to meet to reflect a lower level of collections from the cable
timing requirements or adequately fund current and major phone companies.
programs through the end of the fiscal year.
Franchise Fees. Based on prior year collections,we
FINANCIAL CONDITION SUMMARY have increased this estimate by $90,000 (4%). This
revision is consistent with the Forecast
Beginning General Fund Balance Vehicle License Fees. The State's budget for 2004-
05 includes the "VLF Swap," under which an equal
The beginning General Fund balance (net of amount of "VLF Backfill" (in our case, about $1.9
encumbrances and carryovers) is $557,700 greater million annually) will be "swapped" for an equal
than projected in the 2004-05 Financial Plan amount of increased property tax revenues. If this
Supplement As discussed in the Comprehensive works as it is supposed to, this swap should be
Annual Financial Report for 2003-04 presented to revenue neutral for the City, resulting in lower VLF
the Council in December 2004, this was due to a revenues than budgeted, but equally higher property
combination of revenues, which were 1% higher tax revenues.
than projections, and operating expenditure savings,
which were 1% better than estimated and reflected Public Sq{fety Service Charges. Police booking fee
the successful efforts of the operating departments to revenues are $21,900 greater than projected based
further tighten their belts in light of the tough fiscal on current collections.
circumstances facing us..
Development Review Fees. The Forecast
General Fond Revenues anticipated reducing the 2004-05 projection for
development review fees by about $500,000. Since
Included in Section B of this report is a summary of that time, we have taken a close look at year-to-date
revenues by fund and major source that provides actuals and projected collections for the remainder
actual results for 2003-04 along with a comparison of the year, and we have modified the reduction to
of the revised 2004-05 revenue projections with $495,000. In summary, while down from original
original budget estimates.. The following budget estimates, the revised projection is about
summarizes the most significant General Fund $300,000 better than the Forecast.
revenue revisions:
Fines and Forfeitures. Consistent with the
Sales Tax. Consistent with the Forecast, sales tax Forecast, this has been reduced by $50,000 based on
revenues are projected to be flat from 2003-04. This actual results in 2003-04.
A-2
TRANSMITTAL • 'A
Interest Earnings. Consistent with the Forecast, fund balances/working capital for 2004-05 and the
this has been reduced by $72,000 based on actual original budget and revised projections for 200405.
results in 2003-04, which reflect lower investment
yields and lower investable cash balances. M[D-YEAR BUDGET REQUESTS
Operating Programs
As noted previously, we have only proposed mid-year
Section B includes an overview of changes to the budget requests that need to be approved now in order
operating program budgets. Organized by function, to meet timing requirements or adequately fund current
these schedules include the original budget, re- programs through the end of the fiscal year.
appropriations for encumbrances and carryovers,and Supporting documentation that fully justifies the
budget changes to-date since approval of the 2004 need for these adjustments is provided in Section C,
05 Financial Plan Supplement in June 2004. These summarized as follows:
summaries also reflect the mid-year budget requests
as discussed later in this report. Operating Proms
Other than the proposed mid-year budget requests Facility Use Fees for Recreation Programs. Cost
totaling $70,000, the only significant "net" change recovery efforts by the School District resulted in
in General Fund costs since budget adoption is the increased fees of $20,000 for facilities used for
appropriation of$109,800 for the April 2005 special Parks & Recreation programs in 2004-05, and
election. $50,000 annually thereafter (increasing from the
current budget of$45,000 annually to$95,000).
Capital Improvement Plan
However, as detailed in their request, the Parks &
This part of Section B reflects the original CIP Recreation Department has identified several
budgets for 2004-05 by fund, re-appropriations for strategies for offsetting this cost increase in 2005-07.
encumbrances and carryovers, and budget changes
to-date since approval of the 2004-05 Financial Plan Even with the significant fee increase, the rates
Supplement in June 2004. As discussed in more charged by the School District are very reasonable.
detail later, only one CEP project is recommended For $95,000 annually, the City uses: 11 classrooms,
for Council consideration at this time: $15,000 for 7 gymnasiums and selected other indoor facilities,
mosquito abatement at Laguna Lake. totaling over 44,000 square feet. This is the
equivalent of two additional Ludwick Centers at a
Interftmd Transactions cost of 17 cents per square foot per month.. Similar
space in the open market would cost $1.60 per
This portion of Section B reflects actual interfund square foot per month
transfers for 2004-05 along with the original budget
and revisions for 2004-05. The revised operating .Revenue Ballot Measure Feasibility Analysis.
transfers are generally driven by Council approved Using professional assistance in analyzing the
changes since the adoption of the 2004-05 budget. feasibility of a revenue ballot measure in 2006 will
The reimbursement transfers are based on the 2003- cost$35,000 in 2004-05.
05 Cost Allocation Plan adopted by Council on
February 3,2004. Capital Improvement Plan
Projected bind Balances/Worldng Capital Short-Term Mosquito Abatement Services for
Laguna Lake. Contracting.for multiple applications
Based on the revised revenue projections and of granular larvacide by helicopter into Laguna Lake
expenditures summaries, this part of Section B as directed by the County Health Department will
includes a summary of projected changes in cost$15,000 in 2004-05.
financial position for each of the City's operating
funds. As with the revenue projections, the changes
in financial position schedules include the actual
A-3
TRANSMITTAL MEMORANDUM
PROSPECTS FOR THE FUTURE with a formal review of the City's financial condition
six months into the fiscal year, and to provide an
update on the status of major City goals, CIP
Council has already begun the arduous task of projects and other objectives.
balancing the budget for 2005-07 and beyond.
Unless the economy performs significantly better The Department Heads and Budget Review Team
than projected or new revenues are implemented, the and will be prepared to respond to any questions the
Forecast shows that we are facing a budget gap of Council may have regarding this report at their
$2.4 million annually in 2005-07, excluding the February 15, 2005 meeting. If you have any
carryover reserve shortfall of$1.4 million. questions in the interim, or require additional
information,please do not hesitate to contact us.
While the budget-balancing difficulties facing us are
significant, we go into the 2005-07 budget process
with a much better foundation than most cities in
California
• We are in good fiscal shape.
• We have good information.
• We have strong financial systems and
procedures in place.
• We have an excellent organization and capable
staff.
• We have excellent Council leadership.
We have a great tradition of responsible
stewardship.
This "civic infrastructure" is simply not in place in
many other cities. And it will serve us well in
successfully meeting the challenges ahead of us.
STATUS OF GOALS AND OBJECTIVES
Section E of this report provides a formal look at the
status of Major City Goals, Other Council
Objectives and Major CIP Projects as of February
2005. As reflected in the report, with about 80% of
the Financial Plan period completed, we are
generally on track in achieving the major City goal
"action plans." On the other hand, some of the goals
and objectives require modifications to task
schedules.
There are no significant changes in the action plan
status from the last time Council reviewed the goals.
CONCLUSION
The mid-year budget review document for 2004-05
has been prepared in order to present the Council
A-4
g . • t • t •
Comparison of Mid-Year Budget Projections with Those Initially Presented
in the 2004-05 Financial Plan Supplement
WHERE WE'RE UP Variance L,
One-Time One-Time On-Going
Revenues and Other Sources
Beginning Fund Balance(Net of Carryovers and Encumbrances) 557,700 557,700
Property Tax 190,900 190 ,900
Proposition 172 Sales Tax 11,900 11,900
Transient Occupancy Tax 83,900 83,900
Franchise Fees 90,000 90,000
Public Safety Service Charges 21,900 21,900
WHERE WE'RE DOWN
Revenues and Other Sources
Sales Tax (173,900) (173,900)
Utility Users Tax (157,300) (157,300)
Fines and Forfeitures (50,000) (50,000)
Interest Earnings on Investments (72,000) (72,000)
Development Review Fees (495,000) (495,000)
Other Ups&Downs (3,200)
Expenditures and Uses
Special Municipal Election (109,800) (109,800)
Mid-Year Requests (50,000) (20,000) (70,000)
NET CHANGE 1 $397,900 1 ($569,600) ($174 )
Ending Fund Balance-June 30, 2005 5,833,900
Percent of Operating Expenditures l6%
Comparison with the.December 2004 Forecast
The results summarized above are consistent with the December 2004 Forecast with two exceptions:
it did not reflect appropriations for the special municipal election($109,800)or mid-year budget
requests($70,000);and it estimated that development review fees would be less than estimated in
the 2004-05 Financial Plan Supplement by$780,000,versus the revised reduction of$495,000. For
comparison purposes,the Forecast projected an ending fund balance of$5,769,100-a variance of
only$64,800 from the revised estimate of$5,833,900 shown above.
A-5
FINANCIAL CONDITION SUMMARIES
BY
MAJOR
SUMMARY BY FUND
2003.04 2004-05
Original Revised
Actual Budget Projection Variance
GOVERNMENTAL FUNDS
General Fund 36,872,400 38,578,900 37,562,500 (1,016,400)
Special Revenue Funds 2,164,300 2,153,700 2,873,700 720,000
Capital Project Funds 2,233,200 5,827,900 19,414,900 13,587,000
Total Governmental Funds 41,269,900 46,560,500 5998510100 13,290,600
ENTERPRISE FUNDS
Water Fund 10,056,200 10,556,600 12,566,300 2,009,700
Sewer Fund 8,272,800 9,001,700 9,023,700 22,000
Parking Fund 4,621,800 3,593,500 4,121,500 528,000
Transit Fund 2,610,200 2,541,400 2,501,000 (40,400)
Golf Fund 301,700 304,100 304,100
Whale Rock Reservoir Fund 950,100 968,900 968,900
Total Enterprise Funds 26,812,800 26,966,200 299485,500 2,519,300
TOTAL $68,082,700 $7395269700 $899336,600 $15,809,900
B-1
BY
• u CATEGORY SOURCE
GENERAL FUND
2003.04 2004=05 -
Original Revised ,
Actual _ -._Budget =_., ,Pro ection- Variance
Tax Revenues
Sales&use tax
General 11,294,300 11,468,200 11,294,300 (173,900)
Public safety(Proposition 172) 256,500 244,600 256,500 11,900
Property tax 6,069,600 6,333,900 6,524,800 190,900
VLF property tax swap 1,942,200 1,942,200
Transient occupancy tax 3,922,200 3,956,000 4,039,900 83,900
Utility users tax 3,669,200 3,973,300 3,816,000 (157,300)
Franchise fees 1,967,800 1,956,500 2,046,500 90,000
Business tax certificates 1,475,100 1,546,600 1,519,400 (27,200)
Real property transfer tax 293,000 215,000 250,000 35,000
Total Tax Revenues 28,947,700 29,694,100 3196899600 1,995,500
Fines and Forfeitures
Vehicle code fines 176,600 220,000 199,700 (20,300)
Other fines and forfeitures 103,200 110,000 80,300 (29,700)
Total Fines and Forfeitures 279,800 3309000 .280,000 (50,000)
Investment and Property Revenues
Investment earnings 22,000 300,000 228,000 (72,000)
Rents&concessions 71,100 47,000 47,000
Total Investruent and Property 939100 347,000 275,000 (727000)
Subventions and Grants
Motor vehicle in-lieu 2,013,300 2,840,100 217,700 (2,622,400)
Homeowners&other in-lieu taxes 80,500 84,000 84,000
Other in-lieu taxes 46,700 48,800 48,800
SB 90 reimbursements
Police training(POST) 54,400 84,900 84,900
Traffic Safety grant
Local Law Enforcement 112,100 100,000 109,800 9,800
Booking fee reimbursement 105,300 105,400 105,400
Other State&Federal grams 747,200 165,400 165,400
Total Subventions and Grants 3,159,500 3,263400 8169000 (29447,200)
Service Charges
Public Safety
Police Services
Accident reports 3,400 4,200 4200
Alarm permits 111,700 126,100 126,100
DUI cost recovery 7,100 6,400 6,400
Second response fees 2,100 5,300 2,000 (3300)
Booking fee recovery 41,200 18,100 40,000 .21,900
Tobacco permit fees 12,500 13,100 600
Other police services 28,200 50,400 59,700 9,300
193,700 223,000 251,500 28,500
B-2
REVENUES BY O . CATEGORY AND SOURCE
GENERAL FUND
2003-04 2004-05
Original Revised
Actual Budget Projection Variance
Fire Services
Cal Poly fire services 233,000 200,000 200,000
Medical emergency recovery 165,900 129,900 129,900
Fire-safety/haz mat permits 135,200 51,700 51,700
CUPA fees 62,300 80,500 80,500
Other fire services 15,000 4,500 11,600 7,100
611,400 466,600 473,700 7,100
Transportation
Maintenance of State highways 24,400 25,000 25,000
Zone 9 reimbursements 43,500 67,000 67,000
67,900 92,000 92,000
Development Review
Planning&zoning fees 669,600 946,300 721,300 (225,000)
Construction plan check&inspectior 1,048,300 1,380,000 1,170,000 (210,000)
Infrastructure plan check&inspectio 73,800 187,900 187,900
Encroachment permits 198,400 206,000 206,000
Fire plan check&inspections 130,800 180,000 120,000 (60,000)
2,120,900 2,900,200 2,405,200 (495,000)
Leisure,Cultural&Social Services
Adult athletic fees 98,100 106,100 106,100
Youth athletic fees 25,100 33,000 33,000
Instruction fees 90,900 100,800 100,800
Special event fees 76,400 76,200 80,000 3,800
Rental&use fees 87,900 74,000 74,000
Children services 544,200 550,500 550,500
Teens&seniors 20,800 25,000 26,200 1,200
Aquatics 166,000 153,000 153,000
Other recreation revenues 3,400 3,700 13,500 9,800
1,112,800 1,122,300 1,137,100 14,800
General Government
Sales of publications 18,700 35,000 35,000
CCCJPA reimbursements 54,100 10,100 10,100
Other service charges 36,300 20,400 22,300 1,900
109,100 65,500 67,400 1,900
Total Service Charges 4,215,800 4,869,600 4,426,900 (442,700)
Other Revenues
Insurance refunds 33,100 5,000 5,000
Other revenues 143,400 75,000 70,000 (5,000)
Total Other Revenues 176,500 75,000 75,000
Total General Fund $367872,400 $38,578,900 $374629500 ($19016,400)
B-3
REVENUES BY MAJOR CATEGORY AND SOURCE
SPECIAL REVENUE FUNDS
2003.04 20"05
'- - �r>gina7 'Revisixl
:Actual._ _.__:_ Oudiiet
_--:. Projection :.. variance
Downtown Association Fund
Investment and Property Revenues 1,100 4,000 4,000
Service Charges 399,700 380,600 380,600
Total Downtown Association Fund 400,800 384,600 384AN
Community Development Block Grant Fund
Subventions and Grants 759,200 842,200 1,5629200 720,000
Gas Tax Fund
Subventions and Grants 874,100 885,200 885,200
Transportation Development Act Fund
Subventions and Grants 309000 21,100 21,100
Law'Enforcement Grant Fund
Investment and Property Revenues 700 10,000 10,000
Subventions and Grants 84,600
Service Charges 14,900 10,600 10,600
Total 1,aw Enforcement Grant Fund 100,200 20,600 20,600
Total Special Revenue Fonds 2,164,300 29153,700 21873,700 720,000
B-4
REVENUES BY O . CATEGORY AND SOURCE
CAPITAL PROJECT FUNDS
2003-04 2004A5
Original Revised
Actual Budget Projection variance
Capital Outlay Fund
Subventions and Grants
State of California
Traffic Safety grant 40,000 40,000
SLTPP/STP grant 308,400 1,069,000 1,922,600 853,600
Proposition 116
STP/SHA-RRTC 69,400 1,071,000 1,071,000
State Public Safety CLETEP
Other State grants 183,500 540,000 901,300 361,300
Federal Government
Highway and bridge rehabilitation and
replacement(HERR) 207,600 64,000 5,694,700 5,630,700
Transportation enhancement(TEA) 28,500 523,700 523,700
Other Federal grants 500,000 981,300 481,300
Service Charges
Zone 9 reimbursements
Other Revenues
Sale of Surplus Property 452,000
Other Revenue 36,200 36,200
Contributions 42,300
Total Capital Outlay Fund 1,2919700 2,213,000 119170,800 8,9571800
Parkland Development Fund
Investment and Property Revenues 5,400 20,000 20,000
Subventions and Grants 312,800 125,000 215,700 90,700
Service Charges
Park m-lieu fees 24,800 5,000 320,500 315,500
Dwelling unit charge 600 5,000 8,700 3,700
Other Revenue
Total Parkland Development Fund 343,600 155,000 564,900 409,900
Transportation Impact Fee Fund
Investment and Property Revenues 15,200 10,000 30,000 20,000
Subventions and Grants 664,000 . 664,000
Service Charges 284,400 834,600 1,051,300 216,700
Contributions
Total Transportation Impact Fee Fun 299,600 844,600 1,745,300 900,700
Fleet Replacement Fund
Investment and Property Revenues 2,500 15,000 15,000
Other Revenues
Sale of surplus property 46,800 40,000 40,000
Total Fleet Replacement Fund 499300 55,000 559000
B-5
REVENUES BJY MAJOR CATEGORY AND SOURCE
CAPITAL PROJECT FUNDS
200344 __. ._ . -. - 2004.05
Original 'Revised
•
Actual_. _ Budget_
Pro ectjon _ _....__Variance_
Open Space Protection Fund
Investment and Property Revenues 3,900 2,000 10,000 8,000
Subventions and Grants 2,030,000 5,555,000 3,525,000
Service Charges
Other Revenue
Total Open Space Protection Fund 3,900 290329000 5,5659000 3,5339000
Airport Area Impact Fee Fund
Investment and Property Revenues 3,700 6,200 10,000 3,800
Service Charges 172,400 28,900 28,900
Total Airport Area Impact Fee Fund 176,100 . 35,100 38,900 39800
Affordable Housing Fund
Investment and Property Revenues 8,500 15,800 25,000 9,200
Service Charges 60,500 477,400 250,000 (227,400)
Total Affordable Housing Fund 69,000 4939200 275,000 (218400)
Total Capital Project Funds 2,233,200 59827,900 1994149900 13,587,000
B-6
REVENUES BY O . CATEGORY
ENTERPRISE FUNDS
2003-14 2004-05
Original Revised
Actual Budget Projection Variance
Water Fund
Investment and Property Revenues 42,900 184,600 184,600
Subventions&Grants 910,000 2,009,700 2,009,700
Service Charges 8,833,700 10,357,000 10,357,000
Other Revenues 269,600 15,000 15,000
Total Water Fund 10,056400 10,556,600 12,5669300 21009,700
Sewer Fund
Investment and Property Revenues 32,500 66,300 66,300
Subventions&Grants
Service Charges 8,240,300 8,935,400 8,935,400
Other Revenues 22,000 22,000
Total Sewer Fund 8472,800 9,0019700 9,023,700 22,000
Parking Fund
Fines and Forfeitures 777,000 763,500 763,500
Investment and Property Revenues 81,100 191,000 191,000
Service Charges 2,287,700 2,639,000 3,167,000 528,000
Other Revenues 1,476,000
Total Parking Fund 4,621,800 3,593,500 4,121,500 5289000
Transit Fund
Investment and Property Revenues 1,800 2,600 2,600
Subventions and Grants 2,277,000 2,139,300 2,093,300 (46,000)
Service Charges 331,400 397,500 397,500
Other Revenues 2,000 7,600 5,600
Total Transit Fund 2,6109200 29541,400 295019000 (40,400)
Goff Fund
Investment and Property Revenues 800 1,500 1,500
Service Charges 300,900 302,600 302,600
Total Golf Fund 3019700 304,100 304,100
Whale Rock Commission
Investment and Property Revenues 3,500 20,000 20,000
Subventions and Grants
Service Charges 941,600 948,900 948,900
Other Revenues 5,000
Total Whale Rock Commission Fund 950,100 968,900 968,900
Total Enterprise&Agency Funds $26,8129800 $26,966,200 $29,485,500 $2,519,300
B-7
OPERATING
■ s ■ ■ ' s
SUMMARY BY FUNCTION
Changes
. O71111aal GarryOtheoveWr
Mid-Year 12evlsed,
-.. _
Public Safety 18,301,400 (119,700) 209,300 18,391,000
Public Utilities 9,518,500 680,900 39,700 10,239,100
Transportation 4,990,500 147,400 13,100 5,151,000
Leisure,Cultural&Social Services 6,098,200 131,000 38,700 20,000 6,287,900
Community Development 5,053,200 241,700 71,700 5,366,600
General Government 9,061,800 174,800 (11,600) 35,000 9,260,000
Total 53,023,600 19256,100 360,900 55,000 54,695,600
SUN 4ARY OF NET BUDGET CHANGES TO-DATE:
Council/CAO General Other
Approval Date Fund Funds Total
Fire Interim Training Officer net effect 7/1/2004 27,000 27,000
SLOPD SWAT van engine replacement 7/20/2004 4,800 4,800
Whale Rock legal services 8/122004 10,000 10,000
Residential Parking Permit Program 8/172004 5,500 5,500
Triathlon Transition services donations 8/312004 2,500 2,500
Grandparents Fun Run printing donations 8/31/2001 200 200
SWRCB supplemental environmental project 9/282004 (18,000) (18,000)
Seismic URM Coordinator 10/8/2004 27,700 27,700
Janssen Foundation donation for roller hockey program* 1021/2004 2,000 2,000
Transportation for Junior Giants 10/21/2004 1,000 1,000
USA marling 1022/2004 (47,700) 47,700
Damaged bus stop 10222004 5,600 5,600
Arrest&citation statistical data provided to Cal Poly 11/82004 3,000 3,000
Law Enforcement Block Grant match 11/182004 9,800 9,800
Police protective clothing grant 11/182004 300 300
CERT program expenses 11/10-11/23/04 2,100 2,100
Cuesta share of Mardi Gras community information 12/9/2004 1,500 1,500
Police/Fire overtime-Nissan commercial 12/9/2004 1,200 1,200
Mutual aid response overtime 12/15/2004 143,100 143,100
Special Municipal Election 12/16/2004 109,800 109,800
Damon Garcia shade structure 12/16/2004 6,800 6,800
PG&E donation for Winter Brochure advertising 1227/2004 3,000 3,000
Laguna Lake Park mitigation project 1228/2004 10,000 10,000
City Chipping Day 1229/2004 100 100
Electrical Engineering for street light 1229/2004 1,900 1,900
Total $310,100 $50,800 $360,900
All changes have revenue or expenditure offsets and have no net fiscal impact with the exception of the special
municipal election costs, which are funded by the General Fund.
B-8
CAPITAL IMPROVEMENT PLAN: ALL FUNDS COMBINED
2004-05
Original Encumbrances/ Other Budget Mid-Year
Budget Carryovers Changes Adjustments Revised
Capital Outlay 5,776,600 20,453,900 (176,700) 15,000 26,068,800
Parkland Development 193,800 368,400 562,200
Fleet Replacement 84,000 73,700 157,700 .
CDBG 235,300 685,500 920,800
Law Enforcement Block Grain 31,400 31,400
Transportation Impact Fee 1,115,000 2,703,900 149,000 3,967,900
Open Space Protection 2,1301000 3,953,700 6,083,700
Affordable Housing 30,000 30,000
Water 11,069,500 9,903,800 127,000 21,100,300
Sewer 8,686,800 2,775,400 36,000 11,498,200
Parking 1,224,300 10,040,100 11,264,400
Transit 339,300 559,800 111,000 1,010,100
Golf 45;300 45,300
Whale Rock 90,000 616,500 (10,000) 696 500
Total $30,944,600 $52,241,400 $236,300 $15,000 $83,437,3W
SUMMARY OF NET BUDGET ADJUSTMENTS TO-DATE
CouncWCAO Revenue Net
Approval Date Total Offset Impact
Capital Outlay Fund(General Fund)
Seismic URM Coordinator 10/8/2004 (27,700) (27,700)
LOVR Interchange reflected in TIF fund (149,000) (149,000)
Subtotal Capital Outlay Fund (176,700) (149,000) (27,700)
Transportation Impact Fee
LOVR interchange reflected in TIF fund 149,000 149,000
Water Ftimd
Water Reuse Design 12n104 127,000 127,000
Sewer Fund
Sale of Video Inspection Van 12/7/04 18,000 22,000 (4,000)
SWRCB penalty-Froon Creek 9/28/04 18,000
Subtotal Sewer Fund 36,000 22,000 (4,000)
Transit
Bus Stops 11/1/04 111,000 (46,000) 157,000
Whale Rock
Creek Habitat Conservation Plan reduction 8/12/2004 (10,000) (10,000)
Total Adjustments $2361300 ($242000) $242,300
B-9
OPERATING TRANSFERS
200304 2004-05
-
tginal .
Actual ---Budget . -- Revised __- .,Variance
General Fund
Operating Transfers In
Gas Tax Fund 874,100 885,200 885,200
TDA Fund 30,000 21,100 21,100
Law Enforcement Block Grant Fund 1,000
Total operating transfers in 905,100 906,300 906,300
Operating Transfers Out
Downtown Association Fund
Law Enforcement Block Grant Fund
Capital Outlay Fund (3,388,700) (1,744,800) (1,732,100) 12,700
Open Space Protection Fund (100,000) (100,000)
Fleet Replacement Fund (433,700) (458,700) (458,700)
Debt Service Fund (1,760,200) (1,672,500) (1,672,500)
Golf Fund (171,700) (208,900) (208,900)
Total operating transfers out (5,754,300) (4,184,900) (4,172,200) 12,700
Total Operating Transfers (4,849,200) (3,278,600) (3,265,900) 12,700
Gas Tag Fund
Operating Transfer Out
General Fund (874,100) (885,200) (885,200)
Transportation Development Act Fund
Operating Transfer Out
General Fund (30,000) (21,100) (219100)
Law Enforcement Grant Fund
Operating Transfer Out
General Fund (11000)
Capital Outlay Fund
Operating Transfer In
General Fund 3;388,700 1,744,800 197329100 (12,700)
B-10
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
2003-04 _2004-N
Revised--_ Variance
Open Space Protection Fund
Operating Transfer In
General Fund 100,000 1009000
Fleet Replacement Fund
Operating Transfers In
General Fund 433,700 455,700 458,700
Debt Service Fund
Operating Transfer In
General Fund 1,760,200 1,672,500 1,672,500
Golf Course Fund
Operating Transfer In
General fund 171,700 208,900 208,900
NET OPERATING TRANSFERS $ $ $ $
B-11
INTERFUND TRANSACTIONS
REIMBURSEMENT TRANSFERS
.2003-04
--,-2004,05-
0604W
Actual Bud ' t _" --_Revised___. Variance
General Fund (3,373,900) (3,472,600) (3,424,900) 47,700
Community Development Block Grant Fund 49,800 48,800 48,800
Enterprise and Agency Funds
Water 1,321,200 1,360,800 1,313,100 (47,700)
Sewer 1,076,900 1,109,200 1,109,200
Parking 413,800 426,200 426,200
Transit 285,800 294,400 294,400
Golf 103,200 106,300 106,300
Whale Rock Commission 123200 126,900 126,900
Total Enterprise and Agency Funds 3,324,100 3,423,800 3,376,100 (47,700)
NET REIMBURSEMENT TRANSFERS $ $ - $ - $
B-12
CHANGES IN FINANCIAL POSITION
ALL FUNDS COMBINED
2003-04 2004.05
Original Revised
Actual Budget Projection Variance
Revenues
Tax Revenues 28,947,700 29,694,100 31,689,600 1,995,500
Fmes and Forfeitures 1,056,800 1,093,500 1,043,500 (50,000)
Investment and Property Revenues 296,700 896,000 865,000 (31,000)
Subventions and Grants 9,204,600 11,519,000 24,956,800 13,437,800
Service Charges
Governmental Funds 5,173,100 6,611,700 6,477,500 (134,200)
Enterprise Funds 21,470,000 22,631,500 23,181,500 550,000
Trust and Agency Revenues 946,600 948,900 948,900
Other Revenues 987,200 132,000 173,800 41,800
Total Revenues 68,082,700 73,526,700 89,336,600 15,809,900
Expenditures
Operating Programs
Public Safety 17,254,000 18,301,400 18,391,200 (89,800)
Public Utilities 9,366,000 9,518,500 10,239,100 (720,600)
Transportation 5,107,100 4,990,500 5,151,000 (160,500)
Leisure,Cultural,&Social Services 5,469,700 6,098,200 6,287,900 (189,700)
Community Development 4,823,700 5,053,200 5,366,600 (313,400)
General Government 8,194,600 9,061,800 9,259,800 (198,000)
Total Operating Programs 50,215,100 53,023,600 54,695,600 (1,672,000)
Capital Projects 23,537,300 30,944,600 83,437,300 (52,492,700)
Debt Service 6,354,900 7,001,900 7,001,900
Total Expenditures 80,107,300 9070,100 145,134,500 (549164,700)
Other Sources(Uses)
Operating Transfers In 6,659,400 5,091,200 5,078,500 (12,700)
Operating Transfers Out (6,659,400) (5,091,200) (5,078,500) 12,700
Proceeds from Debt Financings 4,553,900 17,698,800 38,320,300 20,621,500
Potential MOA Adjustments (541,900) (541,900)
Proposed State Budget Takeaway (683,900) 683,900
Other Sources(Uses) (63,900) (183,300) (119,400)
Expenditure Savings 719,600 23,900 (695,700)
Total Other Sources(Uses) 4,553,900 17,128,700 37,619,000 (20,490,300)
Revenues and Other Sources Over(under)
Expenditures and Other Uses (7,470,700) (314,700) (18,179,200) (17,864,500)
Fund Balance/Working Capital
Beginning of Year 49,062,700 23,793,100 41,592,000 17,798,900
Fund Balance/Working Capital
End of Year
Reserved for Debt Semce 1,568,500 1,568,500 1568,500
Unreserved 40,023,500 21,909,900 21,844,300 (65,600)
Total Fund Balance $41,592,000 $239478,400 $73,412,800 ($65,600)
B-13
,CHANGES IN FINANCIAL POSITION
ALL GOVERNMENTAL FUNDS COMBINED
2003.04 2004-05
Original Revised
Actual Budget Projection Variance
Revenues
Tax Revenues 28,947,700 29,694,100 31,689,600 1,995,500
Fines and Forfeitures 279,800 330,000 280,000 (50,000)
Investment and Property Revenues 134,100 430,000 399,000 (31,000)
Subventions and Grants 6,017,600 9,379,700 20,853;800 11,474,100
Service Charges 5,173,100 6,611,700 6,477,500 (134,200)
Other Revenues 717,600 115,000 151,200 36,200
Total Revenues 41,269,900 46,560,500 59,851,100 13,290,600
Expenditures
Operating Programs
Public Safety 17,254,000 18,301,400 18,391,200 (89,800)
Transportation 1,854,200 1,949,700 2,055,600 (105,900)
Leisure,Cultural,di:Social Services 5,092,000 5,697,500 5,863,300 (165,800)
Community Development 4,823,700 5,053,200 5,366,600 (313,400)
General Government 8,244,400 9,110,600 9,308,600 (198,000)
Total Operating Programs 37,268,300 40,112,400 40,985,300 (872,900)
Reimbursed Expenditures (3,373,900) (3,472,600) (3,424,900) (47,700)
Total Operating Expenditures 33,894,400 36,639,800 37,560,400 (920,600)
Capital Improvement Plan Projects 8,635,400 9,534,700 37,822,500 (28,287,800)
Debt Service 2,086,300 2,001,400 2,001,400
Total Expenditures 44,616,100 48,175,900 7784,300 (29,208,400)
Other Sources(Uses)
Operating Transfers In 6,487,700 4,882,300 4,869,600 (12,700)
Operating Transfers Out (6,659,400) (5,091,200) (5,078,500) 12,700
Proceeds from Debt Financings (39,000) 1,818,800 7,719,600 5,900,800
Proposed State Budget Takeaway (683,900) 683,900
Potential MOA Adjustments (419,900) (419,900)
Other Sources(Uses) (183,300) (183,300)
Expenditure Savings 719,600 (719,600)
Total Other Sources(Uses) (210,700) 1,225,700 6,907400 516811800
Revenues and Other Sources Over(under)
Expenditures and Other Uses (3,556,900) (389,700) (10,625,700) (10,236,000)
Fund Balance,Beginning of Year 25,499,300 12,051,000 21,942,400 9,891,400
Fund Balance,End of Year
Reserved for Debt Service 1,568,500 1,568,500 1,568,500
Unreserved 20,373,900 10,092,800 9,748,200 (344,600)
Total Fund Balance $21,9422400 $119661,3(10 $11,316,700 ($3441600)
B-14
CHANGES a aL POSITION
ALL ENTERPRISE AND AGENCY FUNDS COMBINED
2003.04 2004.05
Original Revised
Actual Budget Projection Variance
Revenues
Fines and Forfeitures 777,000 763,500 763,500
Investment and Property Revenues 162,600 466,000 466,000
Subventions and Grants 3,187,000 2,139,300 4,103,000 1,963,700
Service Charges 21,470,000 22,631,500 23,181,500 550,000
Other Revenues 269,600 17,000 22,600 5,600
Trust and Agency Revenues 946,600 948,900 948,900
Total Revenues 26,8129800 26,966400 299485400 2,519,300
Expenditures
Operating Programs
Public Utilities 9,366,000 9,518,500 10,239,100 (720,600)
Transportation 3,252,900 3,040,800 3,095,400 (54,600)
Leisure,Cultural,&Social Services 377,700 400,700 424,600 (23,900)
General Government 3,324,100 3,423,800 3,376,100 47,700
Total Operating Programs 16,320,700 16,383,800 17,135,200 (751,400)
Capital Projects 14,901,900 21,409,900 45,614,800 (24,204,900)
Debt Service 4,268,600 5,000,500 5,000,500
Total Expenditures 351491,200 42,794,200 67,750400 (24,956,300)
Other Sources(Uses)
Operating Transfers In 171,700 208,900 208,900
Proceeds from Debt Financings 4,592,900 15,880,000 30,600,700 8,024,100
Expenditure Savings 23,900 23,900
Other Sources(Uses) 10,400 (63,900)
Potential MOA Adjustments (122,000) (122,000) 63,900
Total Other Sources(Uses) 4,775,000 15,903,000 309711,500 8,111,900
Revenues and Other Sources Over(under)
Expenditures and Other Uses (3,903,400) 75,000 (7,553,500) (7,628,500)
Working Capital,Beginning of Year 23,563,400 11,742,100 19,649,600 7,907,500
Fund Balance,End of Year $19,660,000 ____$11,817,100 $12,096,100 $279,000
B-15
CHANGES IN FINANCIAL POSITION
GENERAL FUND
2003-04 2004-05
Original Revised
Actual Budget Pro ection Variance
Revenues
Tax Revenues 28,947,700 29,694,100 31,689,600 1,995,500
Fines and Forfeitures 279,800 330,000 280,000 (50,000)
Investment and Property Revenues 93,100 347,000 275,000 (72,000)
Subventions and Grants 3,159,500 3,263,200 816,000 (2,447,200)
Service Charges 4,215,800 4,869,600 4,426,900 (442,700)
Other Revenues 176,500 75,000 75,000
Total Revenues 36,872,400 38,578,900 37,562,500 (1,016,400)
Expenditures
Public Safety 17,254,000 18,301,400 18,391,200 (89,800)
Transportation 1,854,200 1,949,700 2,055,600 (105,900)
Leisure,Cultural,and Social Services 4,896,400 5,468,300 5,599,600 (131,300)
Community Development 4,420,600 4,672,200 4,969,200 (297,000)
General Government 8,194,600 9,061,800 9,259,800 (198,000)
Total Program Expenditures 36,619,800 399453,400 40475,400 (822,000)
Reimbursed Expenditures (3,373,900) (3,472,600) (3,424,900) (47,700)
Total Expenditures 33,245,900 35,980,800 36,850,500 (869,700)
Other Sources(Uses)
Transfers In 905,100 906,300 906,300
Transfers Out (5,754,300) (4,184,900) (4,172,200) 12,700
Proceeds from Debt Financings (39,000)
Expenditure Savings 719,600 (719,600)
Proposed State Budget Takeaway (683,900) 683,900
Potential MOA Adjustments (419,900) (419,900)
Total Other Sources(Uses) (4,888,200) (3,662,800) (39685,800) (23,000)
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (1,261,700) (1,064,700) (2,973,800) (1,909,100)
Fund Balance,Beginning of Year 10,069,400 7,073,500 8,807,700 1,734,200
Fund Balance,End of Year $8,807,700 $6,008,800 $5,833,900 ($174,900)
B-16
'CHANGES IN FINANCIAL
POSITION
DOWNTOWN ASSOCIATION FUND
2003-04; 2004-,W , _
_ O _ Revised
:Actual B et _':V-projection' Variance
Revenues
Investment and Property Revenues 1,100 4,000 4,000
Service Charges 399,700 380,600 380,600
Total Revenues 400,800 384,600 384,600
Operating Expenditures
Community Development 403,100 - 381,000 397,400 (16,400)
Total Expenditures 4031100 381,000 397,400 16,400
Other Sources(Uses)
Operating Transfers In
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (2,300) 3,600 (12,800) (16,400)
Fund Balance,Beginning of Year 61,000 61,000 58,700 (2,300)
Fund Balance,End of Year $58,700 $64,600 $45,900 ($18,700)
B-17
CHANGES IN FINANCIAL POSITION
GAS TAX
- � •._- 2003-04
- _ Original Rolsed -
Actual :.. Bud et.v __ . Projection Variance
Revenues
Subventions and Grants
Traffic Congestion Grant
Gasoline Tax 874,100 885,200 885,200
Total Revenues 874,100 885,200 885,200
Other Sources(Uses)
Operating Transfers Out (874,100) (885,200) (885,200)
Revenues and Other Sources Over(Under)
Expenditures and Other Uses
Fund Balance,Beginning of Year
Fund Balance,End of Year $ - $ - $ $
B-18
CHANGES IN FINANCIAL POSITION
TRANSPORTATION DEVELOPMENT ACT FUND
2003-04.
Original r Revised
_ Actual. -Budget_ _:Pro ecNon Varlauce
Revenues
Subventions and Grants
TDA Revenues 30,000 21,100 21,100
Total Revenues 30,000 21,100 21,100
Other Sources(Uses)
Operating Transfers Out (30,000) (21,100) (21,100)
Revenues and Other Sources Over(Under)
Expenditures and Other Uses
Fund Balance,Beginning of Year
Fund Balance,End of Year $ $ $ $
B-19
,CHANGES IN FINANCIAL POSITION
COM AUNTTY DEVELOPMENT BLOCK GRANT(CDBG)FUND
200344. 2004-05 .
_ Urtginal Revised _
Actual. Bud et_. __Pro ection _ Variance
Revenues
Subventions and Grants
CDBG Allocation 734,200 818,300 1,547,100 728,800
State Grant Close-out 25,000 23,900 15,100 (8,800)
Total Revenues 759,200 842,200 1,562,200 720,000
Expenditures .
Operating Programs
Leisure,Cultural,&Social Services 195,600 229,200 263,700 (34,500)
General Government 49,800 48,800 48,800
Total Operating Programs 245,400 278,000 312,500 (34,500)
Capital Improvement Plan Projects 187,700 . 235,300 920,800 (685,500)
Debt Service 326,100 328,900 328,900
Total Expenditures 759,200 842,200 1,5629200 (7209000)
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 $ - $ $ - $ -
B-20
CHANGES + + POSITION
LAW ENFORCEMENT GRANT FUND
2003.01
,Original Revised
Actual,_ Budget _ : .-Projection- Variance
Revenues
Investment and Property Revenue 700 10,000 10,000
Subventions and Grants
Federal Grants
State Grants 84,600
Service Charges 14,900 10,600 10,600
Total Revenues 100,2110 209600 209600
Expenditures
Operating Programs
Public Safety
Total Operating Programs
Capital Improvement Plan Projects 264,000 31,400 (31,400)
Total Expenditures 264,000 31,400 (31,400)
Other Sources(Uses)
Operating Transfers In
Operating Transfers Out (1,000)
Total Other Sources(Uses) (19000)
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (164,800) 20,600 (10,800) (31,400)
Fund Balance,Beginning of Year 271,800 93,300 107,000 13,700
Fund Balance,End of Year $107,000 $113,900 $96,200 ($17;700)
B-21
POSITION
CAPITAL OUTLAY FUND
Original _ :Revised
Actual ' Budget ' _.Pro ection. ._ variance
Revenues
Subventions and Grants 797,400 2,213,000 11,134,600 8,921,600
Service Charges
Other Revenues 494,300 36,200 36,200
Total Revenues 1,291,700 2,2139000 11,170,800 8,957,800
Expenditures
Capital Improvement Plan Projects 6,714,900 5,776,600 26,068,800 (20,292,200)
Total Expenditures 6,7149900 5,776,600 269068,800 (20492,200)
Other Sources(Uses)
Operating Transfers In 3,388,700 1,744,800 1,732,100 (12,700)
Other Sources(Uses) (183,300) (183,300)
Proceeds from Debt Financing 1,818,800 7,719,600 5,900,800
Total Other Sources(Uses) 3,388,706 3,563,606 9,268,466 51704,800
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (2,034,500) (5,629,600) (5,629,600)
Fund Balance,Beginning of Year 7,664,100 5,629,600 5,629,600
Fund Balance,End of Year $5,629,600 $ $ $
B-22
CHANGES IN �FINANciAL POSITION
PARKLAND DEVELOPMENT FUND
4
oginal Revised
Actual ` Budget ,Pro ec#lon Variance
Revenues
Investment and Property Revenue 5,400 20,000 20,000
Subventions and Grants 312,800 125,000 215,700 90,700
Service Charges
Park In-Lieu Fees 24,800 5,000 320,500 315,500
Dwelling Unit Fees 600 5,000 8,700 3,700
Other Revenue
Total Revenues 343,600 155,000 564,900 409,900
Expenditures
Capital Improvement Plan Projects 920,100 193,800 562,200 . (368,400)
Total Expenditures 920,100 193,800 562,200 (368,400)
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (576,500) (38,800) 2,700 41,500
Fund Balance,Beginning of Year 958200 103,200 381,700 278,500
Fund Balance,End of Year $381,700 $64,400 $384,400 $320,000
B-23
CHANGES IN FINANCIAL POSITION
TRANSPORTATION AIPACT FEE FUND
2003.04- 2004-05_
Original. Revised.
Actual: . .,Budget-,,- ,, .'Pro ectiod. Variance
Revenues
Investment and Property Revenue 15,200 10,000 30,000 20,000
Subventions and Grants 664,000 664,000
Service Charges 284,400 834,600 1,051,300 216,700
Other Revenue
Total Revenues 299,600 844,600 19745,300 900,700
Expenditures
Capital Improvement Plan Projects 161,000 1,115,000 3,967,900 (2,852,900)
Total Expenditures 161,000 1,115,000 3,967,900 (2,852,900)
Other Sources(Uses)
Operating Transfer Out
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 138,600 (270,400) (2,222,600) (1,952,200)
Fund Balance,Beginning of Year 2,100,800 270,400 2,239,400 1,969,000
Fund Balance,End of Year $2,239,400 $ $ 16,800 $ 16,800
B-24
CHANGES ► ► POSITION
OPEN SPACE PROTECTION FUND
200344 2004-M
Original Revised
Actual BudW Pro action Variance
Revenues
Investment and Property Revenue 3,900 2,000 10,000 8,000
Subventions and Grants 2,030,000 5,555,000 3,525,000
Service Charges
Other Revenue
Total Revenues 3,900 2,032,000 59565,000 3,533,000
Expenditures
Capital Improvement Plan Projects 3,900 2,130,000 6,083,700 (3,953,700)
Total Expenditures 3,900 2,130,000 650839700 (3,9539700)
Other Sources(Uses)
Operating Transfer in 100,000 100,000
Revenues and Other Sources Over(Under)
Expenditures and Other Uses. 2,000 (418,700) (420,700)
Fund Balance,Beginning of Year 507,300 8,700 507,300 498,600
Fund Balance,End of Year $507,3W $10,700 $99,600 $77,900
B-25
CHANGES IN FINANCIAL POSITION
AIRPORT AREA HAPACT FEE FUND
200304 _ 004-05 _ _ -
_ w
' Oiiginal ,. . :Revised ,
B" ._ __,r Pio ectlon _ __.. _-Variance
Revenues
Investment and Property Revenues 3,700 6,200 10;000 3,800
Service Charges 172,400 28,900 28,900
Total Revenues 176,100 35,100 38,900 3,800
Expenditures
Capital Improvement Plan Projects
Other Sources(Uses)
Operating Transfer in
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 176,100 35,100 38,900 3,800
Fund Balance,Beginning of Year 437,400 471,500 613,500 142,000
Fund Balance,End of Year $613,500 $506,600 $662,400 $145,800
B-26
CHANGES POSITION
AFFORDABLE HOUSING FUND
2003,04. 2004-05_ ..
Original : Revised
..Actual'_ r _ _'B t =JPc»ection _ lVariance
Revenues
Investment and Property Revenues 8,500 15,800 25,000 9,200
Service Charges 60,500 477,400 250,000 (227,400)
Total Revenues 69,000 493,200 275,000 (218,200)
Expenditures
Capital Improvement Plan Projects 30,000 30,000 (30,000)
Other Sources(Uses)
Operating Transfer in
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 39,000 493,200 245,000 (248,200)
Fund Balance,Beginning of Year 1,247,900 1,726,700 1,286,900 (439,800)
Fund Balance,End of Year $1286,900 $29219,900 $1,5311900 ($688,000)
B-27
ICHANGES IN FINANCIALPOSITION
FLEET REPLACEMENT FUND
2003-04 2004-05
Original Revised
Actual Budget Pro variance
Revenues
Investment and Property Revenues 2,500 15,000 15,000
Other Revenues
Sale of Surplus Property 46,800 40,000 40,000
Total Revenues 49,300 55,000 55,000
Expenditures
Capital Improvement Plan Projects 353,800 84,000 157,700 (73,700)
Total Expenditures 353,800 849000 157,700 (73,700)
Other Sources(Uses)
Operating Transfers In
General Fund 433,700 458,700 458,700
Total Other Sources(Uses) 433,700 458,700 458,700
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 129,200 429,700 356,000 (73,700)
Fund Balance,Beginning of Year 612,900 674,200 742,100 67,900
Fund Balance,End of Year $742,100 $19103,900 $1,098,100 ($5,800)
B-28
POSITION
-CHANGES IN FINANCIAL
DEBT SERVICE FUND
2003-04 2004-05
Original Revised
Actual Budget Projection Variance
Expenditures
Debt Service
1994 Refunding Revenue Bonds 381,100
1996 Lease Revenue Bonds 521,500 521,700 521,700
2001 Refunded Revenue Bonds 799,800 800,600 800,600
2004 Refunding Revenue Bonds 293,700 293,700
Energy Conservation Lease Purchase 57,800 56,500 56,500
Total Expenditures 1,760,200 1,672400 19672,500
Other Sources(Uses)
Proceeds from debt financing
Operating Transfers In 1,760,200 1,672,500 1,672,500
Total Other Sources(Uses) 19760,2011 1,672,500 1,672,500
Revenues and Other Sources Over(Under)
Expenditures and Other Uses
Fund Balance,Beginning of Year
Reserved for Debt Service 1,568,500 1,568,500 1,568,500
Unreserved
Fund Balance,End of Year $1468,500 $1,568,500 $19568,500
B-29
CHANGES IN FINANCIAL POSITION
WATER FUND
2003.04 2004-05
Original Revised
Actual Budget projection Variance
Revenues
Investment and Property Revenues 42,900 184,600 184,600
Subventions and Grants 910,000 2,009,700 2,009,700
Service Charges
Water Sates
Water Service Charges 7,123,600 7,739,500 7,739,500
Sales to Cal Poly 484,600 504,900 504,900
Development Impact Fees 960,700 1,873,800 1,873,800
Connection Charges and Meter Sales 28,200 22,500 22,500
Account Set-up Fee 125,700 105,600 105,600
Other Service Charges 110,900 110,700 110,700
Other Revenues 269,600 15,000 15,000
Total Revenues 10,056,2011 10456,600 129566,300 2,0091700
]Expenditures
Operating Programs
Public Utilities 4,708,100 4,577,200 4,761,800 (184,600)
General Government 1,321,200 1,360,800 1,313,100 47,700
Total Operating Programs 6,029,300 5,938,000 6,074,900 (136,900)
Capital Improvement Plan Projects 9,757,500 11,069,500 21,100,300 (10,030,800)
Debt Service 1,122,900 1,678,600 1,678,600
Total Expenditures 16,909,701 18,686,101 25,853,800 (10,167,700)
Other Sources(Uses)
Other Sources(uses) (10,400)
Proceeds from Debt Financing 3,483,600 8,085,000 13,711,900 (5,626,900)
Potential MOA Adjustments (45,300) (45,300)
Total Other Sources(Uses) 314739200 8,039,700 13,6669600 5,6269900
Revenues and Other Sources Over(under)
Expenditures and Other Uses (3,380,300) (89,800) (2,620,900) (2,531,100)
Worsting Capital,Beginning of Year 12,408,500 6,147,300 9,028,200 2,880,900
Working Capital,End of Year $9,028,200 $6,057,500 $6,407,300 $349,800
B-30
,CHANGES IN FINANCIAL POSITION
SEWER FUND
2003-04 200445
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 32,500 66,300 66,300
Subventions and Grants
Service Charges
Customer Sales
Sewer Service Charges 7,582,200 7,959,800 7,959,800
Sales to Cal Poly 242,000 262,500 262,500
Industrial User Charges 45,800 47,500 47,500
CUPA Inspection Fees 200
Development Impact Fees 366,600 655,600 655,600
Other Service Charges 3,500 10,000 10,000
Other Revenues 22,000 22,000
Total Revenues 8,2721800 99001,700 990239700 4000
Expenditures
Operating Program
Public Utilities 4,098,300 4,251,400 4,655,000 (403,600)
General Government 1,076,900 1,109,200 1,109,200
Total Operating Programs 5,175,200 5,360,600 5,764,200 (403,600)
Capital Improvment Plan Projects 2,161,300 8,686,800 11,498,200 (2,811,400)
Debt Service 2,432,400 2,412,200 2,412,200
Total Expenditures 9,768,900 1(44599600 199674,600 (3,2151000)
Other Sources(Uses)
Proceeds from Debt Financing 417,200 7,795,000 8,864,700 (1,069,700)
Potential MOA Adjustments (43,700) (43,700)
Other Sources(Uses) 10,400 (63,900) 63,900
Total Other Sources(Uses) 427,600 7,687,400 8,821,000 191339600
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (1,068,500) 229,500 (1,829,900) (2,059,400)
Working Capital,Beginning of Year 4,798,000 1,879,500 3,729,500 1,850,000
Working Capital,End of Year $3,729,500 $2,1092000 $1099600 ($209,400)
B-31
,CHANGES IN FINANCIAL POSITION
PARKING FUND
2003-04 200405
Original Revised
Actual Budget Projection variance
Revenues
Investment and Property Revenues 81,100 191,000 191,000
Fines and Forfeitures 777,000 763,500 763,500
Service Charges
Parking Meter Collections
Lots 328,100 308,200 308,200
Streets 900,500 896,700 896,700
Parking Structure Collections 535,100 735,700 735,700
Long-Term Parking Revenues 364,800 430,800 430,800
Lease Revenues 159,200 160,900 160,900
Parking In-Lieu Fees 105,700 106,600 634,600 528,000
Other Revenues 1,370,300 100 100
Total Revenues 49621,800 3,5939500 4,121,500 528,000
Expenditures
Operating Programs
Transportation 1,391,000 1,335,600 1,364,500 (28,900)
General Government 413,800 426,200 426,200
Total Operating Programs. 1,804,800 1,761,800 1,790,700 (28,900)
Capital Improvement Plan Projects 2,559,500 1,224,300 11,264,400 (10,040,100)
Debt Service 713,300 909,700 909,700
Total Eapeoditums 5,077,600 3,895,800 13,964,800 (10,069,000)
Other Sources(Uses)
Proceeds from Debt Financing 692,100 8,024,100 8,024,100
Other Sources(Uses)
Potential MOA Adjustments (12,200) (12,200)
Total Other Sources(Uses) 692,100 (12,200) 8,011,900 8,024,100
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 236,300 (314,500) (1,831,400) (1,516,900)
Working Capital,Beginning of Year 5,246,500 3,456,900 5,482,800 2,025,900
Working Capital,End of Year. $5,482,800 $3,142,400 $3451,400 $509,000
B-32
�CHANGES IN FINANCIAL POSITION
TRANSIT FUND
2003-04 2004-05
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 1,800 2,600 2,600
Subventions and Grants
TDA Revenues 1,312,000 1,339,300 1,340,500 1,200
Other Grants
FTA Grants 965,000 800,000 752,800 (47,200)
Service Charges 331,400 397,500 397,500
Other Revenues 2,000 7,600 5,600
Total Revenues 2,610,200 2,541,400 2,501,000 (40,400)
Expenditures
Operating Programs
Transportation 1,861,900 1,705,200 1,730,900 (25,700)
General Government 285,800 294,400 294,400
Total Operating Programs 2,147,700 1,999,600 2,025,300 (25,700)
Capital Improvement plan Projects 260,800 339,300 1,010,100 (670,800)
Total Expenditures 2,408,500 2438,900 31035,400 (6969500)
Other Sources(Uses)
Potential MOA Adjustments (2,700) (2,700)
Total Other Sources(Uses) (2,700) (2,700)
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 201,700 199,800 (537,100) 736,900
Working Capital,Beginning of Year 401,300 162,600 603,000 440,400
Wonting Capital,End of Year $603,000 $362,400 $65,900 ($296,500)
B-33
CHANGES IN FINANCIAL POSITION
GOLF FUND
2003-04 2004-W
Original Revd
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 800 1,500 1,500
Service Charges
Retail Sales 26,200 16,500 16,500
Green Fees 235,400 243,900 243,900
Other Fees 39,300 42,200 42,200
Total Revenues 301,700 304,100 304,100
Expenditures
Operating Programs
Leisure,Cultural&Social Services 377,700 400,700 424,600 (23,900)
General Government 103,200 106,300 106,300
Total Operating Programs 480,900 507,000 530,900 (23,900)
Capital Improvement Plan Projects 17,100 45,300 (45,300)
Total Expenditures 498,000 507,000 5769200 (69,200)
Other Sources(Uses)
Operating Transfers In 171,700 208,900 208,900
Expenditure Savings 23,900 23,900
Potential MOA Adjustments (6,000) (6,000)
Total Other Sources(Uses) 171,700 2029900 226,800 23,900
Revenues and Other Sources Over(under)
Expenditures and Other Uses (24,600) (45,300) (45,300)
Worldng Capital,Beginning of Year 69,900 45,300 45,300
Worldng Capital,End of Year $457300 $ - $ - $ -
B-34
CHANGES IN FINANCIAL POSITION
WHALE ROCK CONMSSION
2003-04 2004-05
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 3,500 20,000 20,000
Subventions&Grants
Service Charges
Member Agency Contributions 717,600 651,900 651,900
Water Distribution Charges 224,000 296,000 296,000
Other Revenues
Other Revenues 5,000 1,000 1,000
Total Revenues 9509100 9681900 968,900
Expenditures
Operating Programs
Public Utilities 559,600 689,900 822,300 (132,400)
General Government 123,200 126,900 126,900
Total Operating Programs 682,800 816,800 949,200 (132,400)
Capital Improvement Plan Projects 145,700 90,000 696500 (606,500)
Total Expenditures 828,500 906,800 1,6459700 (738,900)
Other Sources(uses)
Potential MOA Adjustments (12,100) (12,100)
Total Other Sour-ces(uses) (12,100) (12,100)
Revenues and Other Sources Over(under)
Expenditures and Other Uses 121,600 50,000 (688,900) (738,900)
Worsting Capital,Beginning of Year 639,200 95,800 760,800 665,000
Working Capital,End of Year $760,800 $145,800 $71,900 ($73,900)
B-35
MID-YEAR BUDGET REQUESTS
SUMMARY OF 11 • 1 MID-YEAR BUDGET REQUESTS
Page No. One-time On-going Total
OPERATING PROGRAMS
General Fund
Parks &Recreation ■ Increase in facility use fees C-2 20,000 20,000
Finance&I T ■ Revenue ballot measure analysis C-5 35,000 35,000
General Fund subtotal 35,000 20,000 55,000
Total Operating Programs 35,000 20,000 55,000
CAPITAL RAPROVEMENT PLAN
Capital Outlay
General Fund ■ Mosquito abatement services C-8 159000
TOTAL MID-YEAR REQUESTS-General Fund $ 70,000
ai
SIGNIFICANTbPERATING PROGRAM
FACILITY USE FEES FOR RECREATION PROGRAMS
Request Summary
Approve an increase in the 2004-05 operating budget for use fees totaling $20,000 to cover rising costs for facility
usage of San Luis Coastal Unified School District(SLCUSD)properties.
Key Objectives
1. Increase line items related to building and property use to reflect an increase in facility charges to the City from
SLCUSD.
2. Allow recreation programs to continue in school district facilities as the City has limited recreational facility
space to accommodate its programs.
Factors Driving the Request for Change
1. In 2003, the City entered into a new joint use agreement with SLCUSD for use of school facilities to house
programs for youth and adults in the community. A result of that agreement was a new billing structure from
the school district, which added costs such as custodial overtime, utility use, repairs, etc. Those costs were not
fully anticipated when the current financial plan was being developed.
2. The school district has been erratic in billing the City;bills are usually received en masse at the end of the fiscal
year, and sometimes after the end of the fiscal year in which they were incurred. As a result, there has not been
an opportunity to catch up with the fee increases over the past two years.
Costs estimated during the preparation of the 2003-05 Financial Plan were much lower than what the City has
been billed for. Meeting the needs of elementary school parents for before and after school child care in
Children's Services has required additional rooms at some school sites in order to comply with State child care
licensing requirements for minimum space per child and accommodate those on waiting lists for the Sun N Fun
program. The facility use bill for fiscal year 2004-05 is estimated to be $95,000 (see chart below); the current
budget allocation for all program building & property lines is $45,000. SLCUSD staff has agreed to waive
$30,000 of the projected $95,000 in fees in 2004-05 because the increase in overtime was introduced after the
approval of the 2003-05 Financial Plan for the City. The overtime charges will be assessed in future years as
SLCUSD felt the City would have time to adjust financing to meet the increase in costs.
FACILITY USE&OVERTIME COSTS FOR PARKS It RECREATION PROGRAMS
2003-04 200405
Facility Use Charges 61,300 60,000
Overtime Charges for Custodial Work 5,400 35,000
Total Charges 66,700 95,000
2004-05 Budget for Facility Rental 45,000
Waiver of OT Charges for FY 2004-05 30,000
Net Deficit for 2004-05 20,000
3. Staff compared the use of SLUCSD facilities in2003-04 to the projected uses in 2004-2005. The total use fee
estimated for this fiscal year is $60,000 compared to the rate paid in 2003-2004 of$61,300 (which included a
one-time fee of$3,500 for space while the Ludwick Center was being renovated). The biggest cost increase
C-2
SIGNIFICANT OPERATING
PROGRAM
s • 1
FACILITY USE FEES FOR RECREATION PROGRAMS
comes in the amount of overtime charged to the City for custodial services: $5,400 in 2003-2004 versus
$35,000 for 2004-2005.
4. Staff has met with school district staff to discuss the increased costs and is working to reduce the overtime
charges through exchange of in-kind services and a phasing in of overtime costs over a two year period.
5. Even with the significant fee increase, the rates charged by the School District are very reasonable. For
$95,000 the City uses: 11 classrooms, 7 gymnasiums and selected other indoor facilities totaling over 44,000
square feet. This is the equivalent of 2 additional Ludwick Centers at a cost of 17 cents per square foot per
month. Similar space in the open market would cost$1.60 per square foot per month.
Alternatives
Other than reducing services in other programs,there is no other viable option for the current fiscal year. Revenue
increases and strategies to offset the costs increases are being explored for the 2005-07 Financial Plan, but there is
insufficient time left in this fiscal year to implement them.
Implementation
Implementation would take place within this fiscal year to cover program facility use costs.
Operating Program
Recreation Programs: Adult Athletics/Classes,Youth Sports/Special Events,Teens&Seniors,Children's Services
Cost Summary
Line Item Dmripdm Account No. 2004.05
000
Building&Property-Adult Sports/Classes 100-60230-7701 1,000
Building&Property-Youth Sports/Special Events 100-60240-7701 12,000
Building&Property-Children's Services 100-60250-7701 3,500
.,Building&Pro -Teens&Seniors 100-60270-7701 3,500
Total Increase $20 000
Because the SLCUSD is waiving$30,000 in facility usage fees in 2004-05,this request is for$20,000 to make up
the shortfall in the current fiscal year. For subsequent fiscal years, an additional$50,000 will be needed to cover all
facility and custodial overtime charges being made to the City by the School District.
To offset increasing costs over the next two years,Staff is proposing to do the following:
Revenue Enhancements
1. Increasing the hourly rate for Sun N Fun from$2.70/hour to$3.00/hour will,generate$26,000 annually. (Note:
Nine cents of the 30-cent increase is the projected cost of living adjustment.)
2. Increasing registration fee for Youth Basketball by$7.50/participant will generate$6,000 annually.
Combined,these increases will offset increased costs by$32,000.
C-3
SIGNIFICANT OPERATING • • • 1 1
FACILITY USE FEES FOR RECREATION PROGRAMS
Cost Offsets
1. Offer in-kind service by having the Ranger Services staff patrol school district sites during maintenance down
times. An estimated $10,000 in Ranger Services staff_nwould be utilized to patrol school sites and used to
offset costs. Negotiations with the School District are still underway so acceptance of this service as an option
has not been made. The Ranger Service will addthis to the regular patrol and should impact the Ranger patrol
by .05 hour/patrol day/site during renovation time. There are 7 schools within the City limits. School
renovations are accomplished during August but not all school fields are renovated annually. The workload
impact of the Ranger Service is estimated at 60 hours during the month of August annually.
2. Offer in-kind service in the form of handling all outdoor facility reservations for the District. Since many of
the requests received by the District are similar in nature to what the City handles for youth sports
organizations, impact to staff would be minimal. Should the City go to an online reservation system, those
District facilities could also be scheduled via the Internet. Approximately $8,000 would be offered as an
exchange for staff to complete registration tasks and for materials and supplies. This service has been offered
to the School District as a means to reduce the overtime charges and as of this date,has not been accepted.
Combined,these two possible"in-kind"services would offset the remaining$18,000 cost increase.
C-4
SIGNIFICANT OPERATING PROGRAM
REVENUE BALLOT MEASURE FEASIBILITY ANALYSIS
Request Summary
Using professional assistance in analyzing the feasibility of a revenue ballot measure in 2006 will cost $35,000 in
2004-05.
Background. The results of the five-year General Fund forecast presented to the Council in December 2004 show
that the City is again facing another tough fiscal outlook. The forecast projects an annual budget gap of $2.4
million in 2005-07—excluding the $1.4 reserve shortfall—even if all we do is maintain current service levels and
continue the severely reduced capital
improvement program implemented in 2003-05.
As shown in the sidebar graph, while less severe, Forecast Budget Gap:2005-10
this gap continues beyond 2005-07. 2 2006-07 2W7-08 2008-09 2009.10
$250,000
In pro-actively addressing the forecast results, T `' Ti H
the Council directed staff to return with a -$500,000
proposal for evaluating the feasibility of a -$1,250,000
revenue ballot measure in 2006 as part of the
200405 mid-year budget review. -$2,000,000
Revenue Ballot Measure. Under Proposition $2,7so,000
218, implementation of any significant new -$3,500,0 00
revenues will require voter approval. A number
of communities have been successful in doing -$4,250,000 - '
so; however, this has only occurred when there
have been serious fiscal problems in maintaining
basic service levels, or a compelling vision for a Annual Gap a Carryover Gap from20oa-os
the use of the new revenues.
Although they were driven by very different
factors—hopes versus fears—all of these successful efforts share one thing in common: they were the result of
extensive community-based efforts, which included a combination of outreach tools and professional assistance to
use them effectively such as scientific public opinion research, education programs and a strong follow-on
advocacy group that will aggressively raise funds and campaign for the issue once it is on the ballot.
This last issue cannot be stressed enough. Under State law; cities have broad discretion in using their funds for
professional assistance in researching issues, conducting surveys and developing voter support strategies.
However, once an issue becomes a formal ballot measure, cities cannot participate as an advocate in any way. In
short, unless there is a strong community-based group that is willing to aggressively raise funds and campaign for
the measure,it is not likely to pass.
Related Past Work. The City completed a similar analysis in November 2003 with the assistance of The Lew
Edwards Group and Fairbanks, Maslin, Maullin & Associates (FMMA). While the results regarding satisfaction
with City services were very favorable, not enough support was evidenced for a successful two-thirds measure. As
such, the Council decided not to go forward with a revenue measure at that time. However, the City's fiscal
circumstances have changed significantly since: we are now concerned with our ability to continue core service
levels and adequately maintain existing infrastructure and facilities – let alone fund new ones. This was not the
assumption when we prepared this analysis in November 2003. As such,we do not recommend relying upon those
results. However, if we go forward with this analysis, we recommend retaining the same team based on the quality
of their work and their familiarity with the City.
G5
SIGN I F1 • s PROGRAM
• 1
REVENUE BALLOT MEASURE FEASIBILITY ANALYSIS
City Manager Discussions and Potentially Competing Measures. The City is not alone in considering the need for
added revenues on an ongoing basis: the city managers in the County have had — and will continue to have —.an
ongoing dialog about the most effective way of approaching this. On one hand,each city has its own story to tell to
its own voters. On the other hand, there may be benefits to a coordinated effort. Moreover, there is recognition
that cities need to be sensitive to the legitimate revenue needs of other agencies — such as schools, libraries and
SLOCOG for regional transportation needs—and the possibility of competing measures. While we need to move
forward with this effort,we will continue stay in close contact with the plans of other agencies.
Timing. Under Proposition 218, new or increased general-purpose taxes require majority voter approval, and the
measure must be held at the same time as regular Council elections (November .2006), unless the Council
unanimously decides to do otherwise. On the other hand, special taxes require two-thirds majority approval,but the
election can be held at any time. However, research shows that tax measures typically do better when held in
conjunction with general elections, rather than as standalone items. As such, whether a general or special purpose
tax,this means that the soonest that a revenue measure could be submitted to the voters is June 2006.
In either case,in order to be ready fora revenue ballot measure at some point in 2006, the feasibility analysis needs
to begin right away.
Key Objectives
1. Assess the overall feasibility of a ballot measure in 2006.
2. If feasible,identify programs and projects most likely to generate broad-based community support.
3. Recommend a majority or two-thirds voter approval measure.
4. Recommend election timing(June or November 2006).
5. Advise on the best increased or new revenue sources,and the amount they should raise.
6. Evaluate community-group resource requirements,and the likelihood that such a group will be formed.
Factors Driving the Request for Change
1. Council direction at the December 14, 2004 budget workshop to return with a proposal for evaluating the
feasibility of a revenue ballot measure in 2006 as part of the 2004-05 mid-year budget review.
2. 2003-05 Major City goal to ensure the City's long-term fiscal health.
3. In a post-Proposition 218 environment, successful revenue ballot measures are required to increase existing
taxes or establish new ones.
Alternatives
1. Do not consider the feasibility of revenue ballot measure in 2006. Future operating programs and capital
improvement plan projects will be limited to existing revenue sources if the City does not explore alternative
revenue options. This will significantly limit our ability to maintain current service levels and adequately
maintain existing assets—let alone achieve our long-term CIP goals.
2. Consider a revenue ballot measure in 2006 but do not use professional assistance in preparing for it. Based
on the experience of other communities,this is likely to result in an unsuccessful ballot measure.
Implementation
C-6
OPERATING
s PROGRAM
REVENUE BALLOT MEASURE FEASIBILITY ANALYSIS
Implementation
Task Date
Enter into agreements with The Lew Edwards Group and FMMA. 2-05
Complete the feasibility analysis and present the results to the Council. 7-05
In the event that the Council decides to go forward in preparing for a 2006 revenue ballot measure, additional work
(and related) resources will be required These will be determined at that time, but conducting a successful
community education program before placing the measure on the ballot is likely to cost between $50,000 and
$75,000.
Operating Program
Finance&Information Technology Administration
Cost Summary
Line Item Descaioun - - Account No 2004
Contract Services 100.25100.7227 35,00
Total ra Costs $ 35-0001
C-7
CAPITAL IMPROVEMENT PLAN
SHORT-TERM MOSQUITO ABATEMENT SERVICES FOR LAGUNA LAKE
CIP Project Summary
Contracting for multiple applications of granular larvacide by helicopter into Laguna Lake as directed by the
County Health Department will cost$15,000 in 2004-05.
Project Objectives
3. Comply with immediate, short term needs of vector control standards.
4. Insure reasonable protection to the public from outbreaks of West Nile virus.
5. Provide a one-time,interim protective measure pending any further action by the County.
6. Comply with City Council direction.
Eyisting Situation
At the August 31, 2004 Council meeting, a resolution was adopted formally requesting that the County establish a
permanent vector control district. In addition, one of the ancillary recommendations in the Agenda Report was for
"staff to return with a mid-year budget request for $15,000 to cover future costs of additional helicopter
applications of larvacide at Laguna Lake, beginning in the spring of 2005, if no funds can be found from the
County for this work." Presently, the County has no funds to provide the helicopter service but is providing all
other labor and materials including chemicals, chemical preparation,permits,monitoring,and field monitoring.
This joint cost sharing resulted from the City agreeing to help supplement costs for dispensing granular larvacide
into Laguna Lake through the end of the 2005 mosquito season.The intent was to help offset a portion of the fiscal
impact while the County formally established a permanent vector control district. This cost sharing agreement was
intended to only continue over the short term to buy some time for the County to formally create and fund a vector
control program which they would provide Countywide.
County Health Department staff was recently unsuccessful in gaining approval by the Board of Supervisors to
pursue a ballot measure for funding a vector control district. This would have covered all future costs, including
helicopter contract services, as well as comprehensive pest control services beyond mosquito abatement and control
once funding became available late 2005. Following Council's direction staff is requesting funding to apply the
larvacide in the spring of 2005. Whether or not we will request additional funding to continue this program as part
of the 2005-07 Financial Plan will depend both on the program's success and any future actions by the County.
Goal and Polity links
1. Council adopted agenda item to provide funding for Spring 2005 application of larvacide.
2. Safe,useful,and attractive parks and landscaped areas.
Project Work Completed
1. First application of granular larvacide was applied to the lake in September 2004.
2. An unsuccessful attempt by the County to gain Board approval of a ballot measure to establish a vector control
district.
C-8
CAPITAL
IMPROVEMENT e
SHORT-TERM MOSQUITO ABATEMENT SERVICES FOR LAGUNA LAKE
Environmental Review
No environmental review is required. The County is providing all permitting, monitoring, chemicals and record
keeping.
Project Phasing and Funding Sources
Pro'ect Costs bv Type
Project Costs
To-Date 2004-05 2005-06 2006-07 Total
Contract Services 3,500 15,000_
18,500
Total 39500 15,000 18,500
Department Coordinator and Project Review/Support
Department Coordinator. Todd Beights,Parks and Urban Forest Maintenance Supervisor
Project Review and Support. None
Alternatives
1. Deny the Project. Council agreed to work cooperatively with the County to share in this short term solution..
Denial of this recommendation would be inconsistent with this agreement.and place citizens at a higher risk of
exposure to the West Nile virus.
2. Defer or Re phase the Request. Providing funding for helicopter distribution is an immediate need and part of
a short term solution,therefore deferring it is not realistic.
3. Change the Scope of the Project. City and County staff have researched all the possible methods for mosquito
abatement available and have determined that aerial dispensing of granular larvacide by helicopter is the only
viable option.
Operating Program
Parks and Landscape Maintenance
Project Effect on the Operating Budget
Requesting Department Parks Maintenance Staff 20 hrs per application
Project Support. All other support provided by the County Health
C-9
Section
RECENT FINANCIAL AND REVENUE REPORTS
city of
j san tuts ompo
Quarterly Financial Report
Second Quarter of 2004-05
January 31,2005 1 op Toil RevenUeS Budget YTD Actual
Sales tax 11,712,800 4,975,400 42%
Property tax 6,333,900 3,004,000 47%
OVERVIEW Transient occupancy tax 3,956,000 2,228,800 56%
Utility users tax 3,973.300 1,932,800 49%
This report summarizes the City's overall financial Vehicle in-lieu(VLF) 2,840,100 386,400 14%
position for the fiscal year through December 2004. Frances rax 1.546,500 1,417,800 96%
p Y � Franchise fees 1,956,500 1,112,800 57%
Except as noted below, revenues and operating Development review fees 2,900,200 1.058,100 36%
expenditures are generally on target based on past Recreation fees 1,137,000 420,600 37%
trends for the Second quarter. Interest on investments 300,000 127.800 43%
Toter 36,656,400 16,734,500 46%
Adjusted Budgets. The revenue projections and 0 Sales Tax. Year-to-date results are generally on
budgets include adjustments for encumbrances,
carryovers and expenditure reduction targets as well target with our projections, and are less than 50%
supplemental appropriations approved by the due to the"triple flip." If this works as it is supposed
as any .
Council as December 31, 2004. to, this should be revenue neutral for the City. We
will soon be distributing an update on underlying
Mid-Year Review. The City's overall revenue and Fends for the quarter ended September 30, 2004
expenditure picture will be discussed in greater detail based on information from our sales tax advisor.
during the Mid-Year Budget Review scheduled for a Transient Occupancy Tax (TOT). As
Council consideration on February 15,2005. indicated in the recent TOT newsletter, after a rocky
start this fiscal year, revenues are now showing
GENERAL FUND positive growth more consistent with the 3% growth
projection. Receipts are 2.6% higher than the same
General Fund Financial Condition. With 50% of quarter last year. We will continue to closely
the year complete, General Fund revenues and monitor this revenue source.
expenditures are both at 47% of projections. . VLF. The State's budget for 2004-05 includes
BudgetGeneral Fund Balance the "VLF Swap," under which an equal amount of
Revenues 31,799,300 18,058,700 47% "VLF Backfill" (in our case, about $1.8 million
Expen(!ilurcs 36,795,500 17,449,700 47% annually) will be "Swapped" for an equal amount of
Other Soes(Uses) (4,354,700) (1,735,900) 40% increased property tax revenues. If this works as it is
Balance,start of Year 9,907,700 8,807.700 Yeer-to-Datx 6A56JW 7
supposed to, this swapshould be revenue neutral for
the City, resulting in lower VLF revenues than
Top Ten Revenues. Our top ten revenues account budgeted, but equally higher property tax revenues.
for 94%of total General Fund revenues. By focusing The City will receive its first "swap" payment in
on these, we can get an excellent understanding of January.
our revenue position. Overall,these key revenues are • Business Tax. The renewal cycle for business
generally performing as projected based on payment tax occurs during the second quarter of the fiscal
schedules and past trends for the second quarter. year. Collections are approximately 3% higher than
Any significant variances are noted below. a year ago.
• Development Review Fees. We continue to
closely monitor this revenue source. Collections are
slightly higher (1.5%) than realized for the second
quarter of 2003-04. Unfortunately, this is consistent
D-1
Quarterly Financial Report Second Quarter of 2004-05
with the downward estimates reflected in the recent Sewer Fund
five-year forecast. Working Capital Budget '
Actual Percent
Revenues 9,023,700 3,644,800 40%
Ex nditures. eratin costs are right on target or Expenditures
g for Operating programs 5,764,200 2,751,900 48%
the second quarter of the year as summarized below: CIP projects 11,498,100 785,400 7%
Debt service 2,412,200 2,173,700 90%
Expenditures By�ype Budget YTD Actual %Expended
Other Sources(Uses) 9,672,200 0%
Staffing 30,825,800 15 030,700 49%
Gonane services 4,597,200 1,784,700 39% Balance,Start of Year 3,729,500 3;729500
ane Year-to-Date 750 1
Telecomm&utilities 1.372,700 704,200 51%
_
Insurance 907,400 689,000 76%
Other operating costs 4328,900 921,900 40% Parkin Fund
Minor capital 188,400 42,000 22% Working Capital Budget YTD Actual Percent
Total by type 40,220,400 19,172500 48% Revenues 3593,500 2,811,300 78%
Reimbursed expenditures 3,424,900 (1,722,800 50% Expenditures
Total 795 00 17,449,700 47% Operating programs 1,790,700 791,900 44%
CIP projects 11,264,500 365,600 3%
Debt service 909,700 384500 42%
The only key variance "by type" is insurance. This Other sources(Uses) 8,661,200 651.300 8%
reflects the City's annual premium for liability which Balimm start of Year 5,482,800 5,482,900
is due in full in July of each year. Brileuc Yea*4 nate 3,772,6001 7,403,4
00
Departmental operating expenditures are also on Transit Fund
target as summarized by the following: Budget '
Revenues 2,501,000 554,100 22%
Expenditures Budget YTD Actual %:Expended�1 Expenditures
Administration 1,896,600 995;900 53%
Operating programs 2,025,300 993,800 49%
CIP projects 1,010,100 137,600 14%
City Attorney 398,600 191,100 48% Other Sources(Uses) (2,700)
City Clerk 701,900 208,600 30% Balance,Start of Year 603,000 603,000
Human Resources 1,993,700 1,179,600 59% Balatim Year-to-Date 65 0 25700
Finance&IT 3,192,200 1,171,400 37%
Community Development 2,354,300 1,049,700 45% Golf Fund
Parks&Recreation 2,898,600 1,389,600 48%
Public Works 8,393,160 4,095,300 49%1 Working Cip;tal Buciciet YID Actual Percent.
Police 10,765,900 4,980,600 46% Revenues 304,100 142,900 47%
Fire 7,625,300 3,910,700 51% Expenditures
Total Departmental 40,220,400 19,1725 �
00 48% Operating ms gprogra530,900 269,100 51%
Reimbursed 'tures (3,424,900) (1,722,800) 50% CIP projects 45,300 3,900 9%
Total Eipenditicum 795,500 1 17 9,700 47% Other Sources(Uses) 226,800 104,400 46%
Balance.Start of Year .45300 45,300
As noted above, the only significant variance is in Year-to-Date 19
Human Resources, which reflects the City's annual Whale Rock Commission
liability premium payment Budaet YTD Actual Percent
Revenues 968,900 459;600 47%
ENTERPRISE FUNDS Expenditures
Operating programs 949,200 386,800 41%
CIP projects 696500 84,800 12%
The following summarizes year-to-date revenues, other Sources(Uses) (12,100) o%
expenditures and changes in worldng capital for the Balance,Start of Year 760,800 760,800 -
enterprise funds. In general, revenues and Balance,Year-to-Date 71 7
expenditures are consistent with past trends. For More information. This summary is based on
Water Fund detailed information produced by the City's financial
Wo-rki.ng Capiml Budget YTD Actual Percent management system If you would like additional
Revenues 12,566,300 5,004,800 40% information, or have any questions about the report,
ExpeIIdi°res please call Finance at 781-7127.
Operating programs 6,074,900 3,016,000 50%
CIPprojects 21,100,300 3598,600 17%
Debt service 1,678,600 545,100 32%
Other Sources(Uses) 13,873,9002,419,700 17%
Balance,Start of Year 9,028,200 9,028,200 -Year-to-Date 14 993 Electronic Distribution: All Employees
D-2
city of
i� san lues owspo
�.
Sales Tax Newsletter
Third Quarter of Calendar Year 2004
February 7,2005 moderation in rates recently),the rate of increase over the
last year is unlikely to continue. This is important to
OVERVIEW note, because without this spike,point-of-sale revenues
would have been flat
For the Quarter. This newsletter covers the City's sales
tax revenues received in December 2004 for sales Accordingly, in light of the prior quarter where point-of-
occurring from July through September 2004. After sale revenues were also flat, combined with the strong
---____ adjusting for "base" from 2003-04, we appear to be on-track with the
apportionment errors revised projection in the five-year General Fund forecast
After adfustmants,"point-bf- prepared in December 2004 for flat sales tax revenues in
sale"revenues were up by 4116and late payments, 2004-05.
compared with 619 same "poim-0f-sale"revenues
j
quarter Mitt year. were up by 4'�' NEWSLETTER CONTENTS
compared with the same
quarter last year.
This newsletter includes a summary prepared by the
Sales Tax Rece'" is Summar City's sales tax advisor highlighting key trends and sales
Sales Tax Receipts 3rd,bir 0 2ni Qtr 03 %Chatige tax issues. It also includes the following charts and
Reported Point-of-Sale 2,643,871 2,624,590 0.7% graphs about the City's sales tax base:
Net Adjustments 85,000
Adjusted Point-of Sate 2,728,871 1 2,624,590 4.0% ■ Major business groups:last 5 quarters
Pool Receipts _ 316,074 240,874 31.2% ■ Top
Total 9,044,945 2,865,464 6.3%
25 sales tax producers(listed alphabetically for
.
this quarter)
The following summarizes "point-of-sale" revenues by ■ Top 20 business -~—�
ones:this Several of these,charts
major business group, after adjusting for late payments, categories: are based on-'Yaw"
apportionment.earns last year and other adjustments quarter compared unae>'justad data As i
identified b our sales tax advisor: with last y� i
y ■ Sales capita: such,cauttan should be €
Per ap used In anaWng these
Adjusted Sides Tax Recei is jklTne City compared results.
Point-of-Sale RecPptS 2nd Qtr 04 2nd Qtr D-3 C ha-n 9 e, with the County
Gen Consumer Goods 718,008 707,147 1.5% and State,last 13 quarters
Autos&Transportation 774,047 747,352 3.6% ■ Major business groups:last 13 quarters
Business&Industry 162,958 202;399 -19.5%
Restaurants&Hotels 276,893 285,313 -3.0% ■ Sales per capita:City compared with five other
Building&Construction' 327,830 299,262 9.5% agencies in the region,last 13 quarters
Food&Drugs 172,001 177,704 -32% ■ Sales tax revenues by geographic area:this quarter
Fuel&Service Stations 297,134 205,415 44.7% compared with last year
Total 7728,871 2,624,592 4.0%
A listing of individuals and organizations that routinely
Continuing Trends. The third quarter—summer receive this newsletter is provided at the end of the report.
sales—traditionally the strongest one for new car sales.
With a 3.6%increase from last summer,this is a positive MORE INFORMATION AVAILABLE
trend. General consumer goods, on the other hand,were
basically flat compared with last summer. However, the The information provided in this newsletter is based on a
most important quarter for this category is the fourth one, detailed database available to the City through our sales
and we won't have results for that until April 2005 at the tax advisor. If you require additional information about
soonest. Lastly, revenues from fuel and service stations the City s retail base, or have any questions about this
continue to climb with higher pump prices. Even if gas newsletter,please contact Bill Statler,Director of Finance
prices stay relatively high (and there has been some &Information Technology,at(805)781-7125.
D-3
city of
sAn Luis ompo
.,`,. µ7)l.':'`"
:a.aaY `"T3 "' "- `� e we f: 4.'�`^ .,+ "'+ 'fi'.�„c " •m "c'
Monthly TOT Report
December 2004
February 2, 2005
This report covers the City's transient occupancy tax (TOT) revenues for July through December 2004
compared with the two prior years. As reflected below, revenues for December are up by 6.8 % from
last year,and are up 11 %year-to-date,
What's This Mean? The continued increase in December TOT revenue maintains the positive trend
upward and this is wonderful news. The last four months have been some of the most stable and
significantly positive returns
that we have seen in a longTOTRevenues
__
while, and this is precisely the Prior Year LAW Year This rearlast Year Vs This Year
direction that we hope to keep.
io---_ X03 oa ioo4 os nrrwr,rn _ Percerrt.
moving in. ady $ 441,914 $ 451,822 $ 442,9b5 $ (8,877) -2.00/c
August 490,001 486,415 461,982 (24,433) -5.0%
Although these months have September 313,424 306,109 346,999 40,890 13.4%
October 313,400 316,821 336,055 19,234 6.1%
shown significant growth, the November 272,992 274,442 295,660 21,218 7.7%
additional revenue still does not December 231,857 2g7,g72 254,052 16,180 6.8%
have the same impact on year- tteatiaeroaa 2,osa,see: oTaast si ea,2tr ;.;: a %
to-date totals as the more January 202,337 230,778
traditional "revenue-generatce' Ferry 279,214 282,223
months of summer do. That is nom, 276,196 277,486
why, inspite of the marked April $14,405 364,560
increases, the year-to-date May V4,692 328,708
change is a modest 3.1%. If the June 3OZ131 387,003
7L1TAL, aeaasss - a ,ys7a _.':__.:.
current trend continues, the
City will meet the 2004-05 fiscal year revenue projection in the 2003-05 Financial Plan Supplement,
which forecasts TOT revenue to grow by 3%. We should continue to remain cautious in our
enthusiasm, however,because we are only half way through the year.
Where to From Here? We are pleased to see that revenues increased again in December and remain
guardedly optimistic about future TOT revenues (but privately we are doing a quiet dance of joy, which
may turn into a visible jig down the halls should the next few months follow suit). We will continue to
monitor TOT revenues closely over the next several months.
For More Information. Please call Jodi Polk, Customer Services Supervisor; at (805) 781-7129.
DISTRIBUTION:City Council,Department Pleads,Department Fiscal Officers,Budget Review Team,Economic Development Manager,Promotional
Coordinating Committee,Visitors&Conference Bureau,SIA Chamber of Commerce,Barnett Cox&Associates,The Tribune(Leslie Stevens),UCSB
Forecast Project,Mike Smith,Pragoa Patel,Paul Broom,Chris Overby,Business Times
D-4
STATUS OF GOALS AND OBJECTIVES
2003-05 Financial Plan
STATUS OF GOALS AND OBJECTIVES
As of February 1, 2005
TABLE OF CONTENTS
INTRODUCTION OTHER COUNCIL OBJECTIVES
Overview 1 Transportation
Report Card:Major City Goals 1 Laurel Lane/OccuttBullock Realignment 19
Report Card: Other Council Objectives 2 Santa Barbara Street Widening 19
Action Plan Changes 2 Waterways Management Plan
Next Report 3 Implementation Program 19
MAJOR CITY GOALS Palm-Nipomo Parking Structure Plans 19
Short-Range Transit Plan 19
Public Utilities Communio Development
Long Term Water Supply 4 ``amort`m Annexation 19
Dalidio Property Annexation 19
Transportation Auto Center Expansion 20
Downtown Improvements:
Street and Sidewalk Maintenance 5 Cultural Center Development 20
Los Osos Valley Road Interchange 6
Railroad Safety Trail 7 STATUS OF CIP PROJECTS
Leisure& Cultural Services
,Therapy Pool 8 Status of Major Capital Improvement 21
Plan Projects
Community Development
Housing 9
Neighborhood Wellness 10
South Broad Street Corridor Plan 11
Downtown Improvements:Monterey Plaza 12
Economic Development:TOT 13
Economic Development: Sales Tax 15
General Government
Long-Term Fiscal Health 17
city of San tUIS OBISPO
' INTRODUCTION
OVERVIEW half of the goals are near or exceed this leve4 with
most goals showing good progress.
This report details the status of major City goals set Organization The "report card" is followed by a
by the Council as part of the 2003-05 Financial Plan. short summary of notable changes from the original
In general, we are on- action plan. Following this is a more detailed report
track in accomplishing _ on each goal and objective, which shows the
these objectives based on objective,action plan as adopted by the Council,any
the work programs Many of these are revisions (additions are shown in italics; date
multi-year goals that changes since the last review are also shown in
adopted by the Council. have activities g
associated with them italics and highlighted in a separate column; and
Report Card. The that go beyond the deletions are shown in strikeout) and a brief status
following is a quick two-year 2003-05 summary as of February 1,2005.
"report card" on the I time frame.
status of major City goals Shorter reports are provided for "other Council
based on the"action plans"approved by the Council objectives," and a summary chart is provided on
as part of the 2003-05 Financial Plan. As a status of major Capital Improvement Plan (CII')
benchmark, at February 1, 2005 we are about 80% projects•
through the two-year Financial Plan period. Over
Report Card: Major City Goals
Long-Term Water Supply
Street and Sidewalk Maintenance
Los Osos Valley Road Interchange
Railroad Safety Trail
Therapy Pool
Housing
Neighborhood Wellness
South Broad Street Corridor
Monterey Plaza
Economic Development: TOT
Economic Development: Sales Tax
Long Term Fiscal Health
0% 10'/0 20% 30% 40% 50% 60% 700/6 800/6 90% 100%
E-1
INTRODUCTION
Report Card: Other Council Objectives
Laurel/OrcuttBuilock
Realignment
Santa Barbara Street
Widening
Waterways Management
Plan
Palm-Nipomo Parking
Structure Plans
Short-Range Transit Plan
Airport Area Annexation
Dalidio Property
Annexation
Auto Center Expansion
Downtown Cultural Center
Development
0% 100/6 20% 30% 40% 50% 60% 70% 800/6 90% 1000%
ACTION PLAN CHANGES 2005, thus lengthening the timeframe for remaining
project components. It now appears that
construction of Phase I improvements (Calle
As noted above, in general we are on-track in Joaquin)by Costco may begin in April 2005.
accomplishing these objectives based on the work
programs adopted by the Council. However,notable Neighborhood Wellness. A Council study session
changes from the original action plans include the has been scheduled for March 1, 2005 to receive
following. public input and Council direction on conceptual
program alternatives for the Rental Inspection
Major City Goals Ordinance.
Long-Term Water Supply. With the hiring of a new South Broad Street Corridor Plan. While there are
consultant, design of the user site improvements for no changes in the status of this goal from the
the Water Reuse Project is now moving forward, November 2004 report, it is important to reiterate
with completion expected in February 2005. that the estimated completion date for this goal was
extended to August 2006 because 1) the project is
Los Osos Valley Road Interchange. The late date being pursued only as resources are available, and
in starting Phase A of the Project Report has caused we have yet to hear of the status of the $100,000 .
the completion date to be extended to February grant application, and 2) staff workloads associated
E-2
INTRODUCTION
with other projects, in particular, the adoption of the NEXT REPORT
Margarita Area Specific Plan,have taken priority.
Economic Development. Transient Occupancy We will present the next "formal report" to the
Tax. Work on the Tourism Task Force is now Council in June 2005 as part of the 2005-07
scheduled to begin in February 2005 (delayed from Financial Plan. In the interim, we will keep the
November 2004). Associated work tasks have been Council up-to-date on the status of major projects
adjusted to reflect this extension. Due to staff through agenda reports, Council Notes and other
involvement with other aspects of the Major City briefing opportunities.
Goal, exploring the use of the Veteran's Memorial
Building for convention center purposes has been
delayed until April 2005.
Other Council_Objectives
Santa Barbara Street `Videning. State funding
shortfalls continue to delay funding of this project at
least until 2005-06,and probably.beyond.
Airport Area Annexation. Due to staff workloads
associated with adoption of the Margarita Area
Specific Plan, Planning Commission review of the
Airport Area Specific Plan is now scheduled to
begin in March 2005, with public hearings and
Council review to occur in May or June 2005.
E-3
MAJOR CITY GOALS
LONG-TERM WATER SUPPLY
Objective. Continue aggressive efforts to develop permanent, reliable water supplies to meet City General Plan
needs,including all options consistent with Council policy.
Action Plan
Task Original Revised
Water Reuse
1. Complete design of required user site modifications. 12/03 2/05
2. Complete Water Reuse Master Plan defining the logical expansion of the 11/04 Complete
water reuse system and include funding for associated CIP in the 2005-07
Financial Plan.
3. Complete construction of the water reuse project backbone pipeline 12104 6/05
system,Water Reclamation Facility improvements and user site
modifications.
Ground Water Development
4. Issue RFP for groundwater development and treatment system feasibility 12/03 Complete
analysis.
5. Select engineer and begin design. 3/04 Complete
6. Complete design,invite bids for construction and award contract 6/05 Deferred
(Construction is scheduled for completion by June 2006).
Conservation
7. Develop program elements and required informational and programmatic 12/03 Complete
resources.
8. Develop monitoring and evaluation program 3/04 Complete
9. Fully implement landscape and non-residential program 4/04 Complete
10. Present program evaluation report to Council. 6/05
Nacimiento Pipeline
11. Present project reservation agreements and full project information to 1/04 Complete
Council for consideration.
Salinas Reservoir Exwnsion
12. Review options and issues with Council for consideration of possible 6/04 Complete
project
Status Summary: 90% Complete. With the Approval of the City's participation in the Nacimiento Pipeline
Project, progress on achieving a dependable long-term water supply for the City has taken a major leap forward.
This action has also resulted in the Council's reconsideration of the priority for our other water supply efforts. On
June 15,2004, Council considered a revised project priority and placed Salinas Reservoir expansion in Tier 3. As
such, actions relative to the Salinas Project are considered complete. Additionally, with the focus shifting to
Nacimiento,the priority for development of an expanded groundwater program has been lowered to Tier 2. Phase
1 design services for an expanded groundwater were presented to Council in December and Council approved
deferral of further action on groundwater development.
A new consultant has been brought on board to complete the design of the user site improvements for the Water
Reuse Project. Completion of design is now anticipated by the end of February 2005. Construction of the
required user site improvements is still anticipated to coincide with the completion of the overall project in June
2005.
E-4
MAJOR CITY GOALS
STREET AND SIDEWALK MAINTENANCE
Objective. Continue maintenance of streets and sidewalks at a,moderate level.
Action Plan
Task . Revised
1. Continue the program of monitoring the condition of existing sidewalks. Ongoing
2. Continue to repair damaged sidewalks,'curbs and gutters using City staff. Ongoing
3. Continue implementation of the 1998 Pavement Management Plan for Ongoing
Areas 7 and 8.
4. Pursue State grant funding for pavement projects. Ongoing
5. Continue to retrofit existing curbs for disabled access using CDBG finds. Annually in Spring 05
Fall
6. Continue contracts of$60,000 per year to repair damaged sidewalks in Annually in Complete
Area 7. Spring
7. Establish permit guidelines to expedite sidewalk repairs by private 12/03 Complete
property owners.
Status Summary: 65% Complete. All work is ongoing and on schedule: Area 8 inventory is complete; Area 7
paving is complete;2004-05 paving is to occur as planned in Spring 2005;Community Development Block Grant
funded ramps for the disabled for Area 8 were designed this past Fall, with actual construction set for Spring
2005.
E-5
MAJOR CITY ,GOALS
LOS OSOS VALLEY ROAD INTERCHANGE
Objective. Continue working towards improvements at the Los Osos Valley Road/Highway 101 interchange.
Action Plan
Task Original
1. Obtain CalTrans approval of the PSR-PDS. 7/03 Complete
2. Finalize plans for Phase 1 improvement/mitigation strategies not requiring 7/03Complete
Cal Trans approval(non-interchange improvements), such as relocation of
Calle Joaquin.
3. Prepare Request for Proposal for the CEQA Environmental Impact Report 9/03 Complete
(EIR),NEPA Environmental Impact Statement(EIS)and Project Report.
4. Pursue Advance Development Funding for the EIR/EIS,Project Report 9/03 Complete
and PS&E.
5. hire consultant and begin preparing.Initial Study,EI /EIS and Project 12/03 Complete
Report.
6. Complete design of Phase 1 (Calle Joaquin Realignment)improvements 3/04 Complete
and invite construction bids.
7. Review Initial Study and determine if EWEIS is necessary 2/05
8. Complete Phase A of Project Report process to narrow possible designs 10/04 2/05
and speed environmental documentation for the project.
9. Begin EIR/EIS 3/05
10. Complete Draft Project.Report. 5/04 10/05
11. Complete Administrative Draft EIR/EIS. 6/04 9/05
12. Complete negotiations for CalTrans cooperative agreement. 6/04 9/05
13. Award contract and begin construction of Phase 1 improvements. 7/04 Spring 05
14. Complete construction of Phase 1 improvements. 6/05 1/06
Status Summary: 35% Complete. Phase 1 improvements are 100% designed, and Costco has invited
construction bids. It is still pending formal Army Corps of Engineering permitting and acquisition of all needed
property. Depending on Army Corps permit requirements,Calle Joaquin Realignment may be delayed due to wet
season building restrictions, however, it is likely construction may begin in April 2005. The Council approved
splitting the Project Report into two phases (A & B) to speed the overall project schedule and save expenses.
Although the Project Development Team has met and begun work on Phase A of the Project Report, which now
includes both conceptual geometry and environmental documentation, the late date in starting has caused the
completion date to be extended to February 2005. Staff and the project consultant have reduced the project
alternatives from seven to two.A draft Initial Study(IS)has been completed and submitted to the City for review
and processing (November 2004). Staff is reviewing the IS to determine what level of environmental review is
necessary. It is likely that an EUMS will be required,causing the planning and environmental stage to lengthen
in time. Based upon projected dates it is anticipated that the EIR/EIS process should start in March 2005 and will
take a minimum of six months to complete. Processing of the EIIt/EIS through Caltrans may take as much as 12-
24 months depending on the complexity of issues that are reviewed STIP funding has been significantly delayed
due to State budget issues. It is doubtful that-additional construction funding for the project beyond Phase 1 will
be available in FY 2005-07.
E-6
MAJOR CITY GOALS
BIKEWAY IMPROVEMENTS: RAILROAD SAFETY TRAIL
Objective. Acquire right-of-way and property for extension of the Railroad Safety Trail from the Jennifer Street
Bridge to Cal Poly.
Action Plan
OriginalTask
1. Secure Union Pacific support for the final schematic design of the bike 9/03 Complete
path between the AMTRAK passenger depot and Foothill Boulevard.
2. Secure rights of entry permits from UP,complete land survey and prepare 2/04 3/05
a legal description of the area proposed for acquisition.
3. Complete negotiations and execute a contract of sale with UP to acquire 4/05 6/05
the property.
Status Summary: 15% Complete. Staff received feedback from UPRR staff that a positive recommendation for
alignment could be made to the UPRR Board of Directors with minor revisions to the plans. Some progress has
been.made: two levels of approvals have been received within UPRR and a final approval is pending. Once the
final approval is received, staff will begin negotiations on UPRR license agreement, property description and
liability issues. These delays have pushed back all remaining completion dates for key milestones.
E-7
MAJOR CITY GOALS
THERAPY POOL
Objective. Pursue development of a warm water therapy pool at the Swim Center through a financing program
for its construction and on-going operation that does not use general-purpose revenues.
Action Plan
Task •
1. Receive funding approval from the State. 1/04 Complete
2. Select a consultant 3/04 Complete
3. Begin study and environmental review. 3/04 Complete
4. Complete study and environmental review and begin design. 9/04 Complete
5. Complete design;invite construction bids and award contract. 4/05
6. Begin construction. 6/05
Status Summary: 85% Complete. The State has approved its funding and the grant will be managed by Public
Works. At this point, staff will be proceeding under the assumption that the State grant will be the only source of
outside funding. A contract for the design work was entered into in July 2004, a draft study of options was
completed in November and comments returned to the designers. Project scope is now finalized and design work
has begun with completion expected by April. The expanded pool idea is no longer an option, as a combination
therapy pool-swim club workout pool has been deemed incompatible.
E-8
' MAJOR
CITY GOALS
HOUSING
Objective. Adopt a Housing Element that expands housing opportunities for very low, low and.moderate income
households,preserves and enhances residential neighborhoods and complies with state laws including CEQA; and
encourage and support Cal Poly's efforts to provide more on-campus housing consistent with their adopted master
plan for housing and enrollment.
Action Plan
Task Original .
1. Implement existing affordable housing incentive and inclusionary housing Ongoing
Programs.
2. Encourage the Chamber of Commerce to'implement programs that achieve Ongoing
their goals for producing workforce housing.
3. Continue working closely with the County-wide Housing Trust Fund. Ongoing
4. Continue working closely with Cal Poly in encouraging and supporting Ongoing
their efforts to provide more on-campus housing consistent with their
adopted master plan.
5. Coordinate preparation and administration of annual Community Annual
Development Block Grant program. Cycle
6.. Update the General Plan-Housing Mement 12/03 Complete
a. Complete background analyses and documentation. "
b. Identify issues through Housing Element Task Force. "
c. Draft policies and programs. "
d. Begin preparing EIFL "
e. Hold town hall meeting. "
L Hold Planning Commission study session. "
g. Hold Council study session. "
h. Complete environmental review.
i. Submit draft for State Housing and Community Development(HCD) "
review. "
j. Hold Planning Commission public hearings. "
k. Hold Council public hearings and adopt update. "
1. Submit for final HCD certification. Complete
m. Begin implementation. Ongoing
Status Summary: 85% Complete. Most of these tasks are ongoing and are moving forward as predicted. The
Housing Element Update was adopted on March 30,2004. Staff submitted the Element to HCD,and certification
was granted in December 2004. The City's Housing Programs Manager will continue to take the lead in
implementing the Housing Element programs as well as providing guidance on new approaches to addressing
pressing housing issues. With the initial five programs approved by the Council in October 2004,implementation
will be an on-going process.
E-9
MAJOR •
NEIGHBORHOOD WELLNESS
Objective. Improve neighborhoods and neighborhood involvement by continuing to implement the neighborhood
wellness program, including consideration of a rental inspection ordinance.
Action Plan
Task Original Revised
1. Maintain and support all existing neighborhood wellness programs Ongoing
currently in place.
2. Continue encouraging formation and involvement of new voluntary Ongoing
neighborhood groups by use of the Neighborhood Managers Coffee
program,WIN,Neighborhood Services Team,Neighborhood Planner and
similar outreach strategies.
3. Continue involving residents early in the public review of proposed Ongoing
projects by a more defined Neighborhood Planner program in Community
Development,including expanding the Neighborhood Planner duties to
include two-year terms,an annual neighborhood issues conference and
attendance at City neighborhood meetings and coffees.
4. Continue contract.Building Inspector position to support continued high 7/03 Complete
levels of building applications and allow the continuation of a full-time
Code Enforcement Officer.
5. Evaluate a cost recovery program for code enforcement efforts as a 12/03 Complete
strategy to reduce and deter repeat offenders while generating increased
revenues,and present findings and recommendations to the Council.
6. Research a Rental Inspection Ordinance in an effort to provide a safer 9/04 3/05
housing environment for renters and present findings and
recommendations to the Council.
Status Summary: 80% Complete. Staff,working with Cal Poly and Cuesta College established a collaborative,
cost effective Community Solutions Program that is available to residents and students living in the City to
resolve conflicts and community challenges. Known as "SLO Solutions", the program was launched with a
media campaign September 23,2004.
The preliminary background research for the Rental Inspection Ordinance is complete with Community
Development, Police and Fine staff currently meeting to review and finalize conceptual program alternatives. A
study session will be held at the March 1, 2005 City Council meeting to present alternatives to the Council for
discussion and direction.
E-10
MAJOR CITY GOALS
SOUTH BROAD STREET CORRIDOR PLAN
Objective. Adopt General Plan and zoning amendments to create a mixed-use residential neighborhood along the
South Broad Street corridor from South Street to Orcutt Road and seek grant funding to implement the Land Use
Element special design area program and create a neighborhood concept plan for the area
Action Plan
Task Original .
1. Identify housing targets as part of the adopted Housing Element update. 12/03 Complete
2. Hold community meetinglissue identification meeting to develop a schematic 5/04 Complete
concept plan.
3. Develop work program for concept pIan/General Plan amendment/rezoning. 3/04 3/05
4. Hold additional community meeting to discuss concept plan. 11/04 5/05-8/05
5. Council initiation of concept plan/General Plan amendment/rezoning program 9/04 9/05
6. Prepare concept plan&environmental review. 1/05 10/05-1/06
7. Concept plan review at Planning Commission. 8/04 1/06
8. Concept plan approval at Council. 6/05 3/06
9. Prepare Fiscal Impact Analysis. 7/05 4/06
10. Hold Planning Commission hearings on GPA and rezoning. 3/05 6/06
11. Hold Council heating and adopt General Plan amendment/rezoning. 6/05 8/06
12. Continue to seek grant funding for preparation of a neighborhood concept plan. Ongoing Ongoing
Status Summary: 5% Complete. The March 2004 updated Housing Element includes direction to intensify
housing in this and similar areas. In addition, Land Use Element Policy 8.3 directs that the City prepare design
guidelines and implementation programs for the renovation of streetscapes, landscaping and building facades
along Broad. Street from High Street to Orcutt Road. With grant funding, a two-day neighborhood outreach
"charrette" was held in May 2004 (step 2) and provided input on how the Broad Street right-of-way could be
improved. Recommendations addressed traffic and streetscape improvements. The charrettes did not
substantively address the Housing Element objective to intensify housing in the area between Broad Street and the
railroad tracks. In October 2004, the City applied for another grant ($100,000) to support additional charrettes
that would lead to the preparation of a concept plan addressing both General Plan objectives. If grant funds do
not become available, the concept plan will be completed using City resources. This will extend the original
estimated completion date for this goal. An alternative is to focus on amending the land use to allow residential
mixed use and to prepare a plan for streetscape and traffic improvements separately. This approach is not
recommended because land use and streetscape improvements are interrelated. No additional City funding,
however,is requested at this time because it is still unknown whether grant funds will be available,and if they are
not,an entirely different planning approach will be needed(with greatly reduced costs).
E-11
MAJOR CITY GOALS
DOWNTOWN IMPROVEMENTS: MONTEREY PLAZA
Objective. Pursue the creation of a"Monterey Plaza"for civic gatherings and passive recreation,dependent upon
the start-up of the Copeland's Court Street retail-commercial and the Palm-Morro parking projects.
Action Plan
Original Revised
1. Consultant completes concept plan. 7/03 Complete
2. Council reviews concept plan and forwards it for advisory body review. 9/03 Complete
3. After advisory body and public review, Council identifies preferred design 7/04 Complete
concept(s)and establishes the scope of technical and environmental
studies(such as circulation,access,utility and drainage analysis,and
project phasing)for additional study.
6AU
Status Summary: 100% Complete. The consultant provided the City with final drawings that the staff
forwarded to the advisory bodies and Council. Although the revised drawings were not quite what staff had
requested for a complete submittal to the Council, with additional work by staff they were adequate to proceed to
conceptual review. Council.reviewed the concept plan on November 4, 2004 and completed the preliminary
phase of the project by approving the concept plan. Based on Council direction at that time, any decision to
funding further technical and environmental studies will be made as part of the 2005-07 Financial Plan.
E-12
MAJOR
CITY GOALS
ECONOMIC DEVELOPMENT: TRANSIENT OCCUPANCY TAX
Objective. Encourage and promote projects that will increase lodging and conference facilities in order to
generate additional Transient Occupancy Tax revenues.
Action Plan
OriginalTask
1. Refocus existing resources toward Direct Advertisement of the City. Ongoing Complete
Develop s focused advertising and PR campaign for the City that
establishes a stronger identity for the City as a tourist destination with a
wide variety of activities to undertake during a stay.
2. Work with various organizations for tourist promotional purposes Ongoing
benefiting both the City and the organizations.
3. Work with property owners and real estate brokers to explore increasing Ongoing
Bed and Breakfast opportunities,consistent with City land use and zoning
policies.
4. Complete assessment of local lodging industry conditions by identifying 9/03 Complete
all such properties in the City;identifying all property owners and their
managers;and identifying future expansion locations for tourist serving
businesses.
5. Assess transportation opportunities for visitors and if necessary make 9/03 Complete
service improvements. Strongly consider extending trolley service to the
Monterey Street Hotel Area.
6. Present recommendations for improved tourism transportation and trolley 12103 Complete
service to Council for approval.
7. Establish a Task Force of local tourism experts'to develop a transient 7/03 2/05
occupancy tax enhancement strategy.
a Explore ways to coordinate efforts amongst property owners and 1/04 6/05
ways to cooperatively book rooms to prevent business losses to
other communities. Explore ways to increase midweek business
travel.
b. Present Tourism Task Force recommendations to Council. 3/04 6/05
8. Update advertising conversion study completed approximately four years 6/04 Complete
ago-
E-13
MAJOR CITY GOALS
Task Priginal Revised
9. Explore reuse of large properties on Monterey Street,including sites 6/04 Complete
occupied currently by auto dealers(some of whom are expected to
relocate).
10. Explore possibility of using the Veterans Memorial Building for 9/04 410S
convention center purposes,work closely with the Veterans and the
County in this effort.
11. Upon construction,encourage the Dalidio Project hotel.to work with the 1/05 Pending
Embassy Suites and develop a coordinated effort to use rooms to support referendum
existing conference services at the Embassy Suites.
Status Summary: 80% Complete. Council's adoption in July 2003 of a Tourism Marketing Plan established six
objectives for the City's community promotions. The February 2004 approval of the community promotion
brand, "San Luis Obispo, Experience the SLO Life" has resulted in staff and the City's promotions contractors
implementing a focused.advertising and public relations campaign. A market research study was completed in
November. The research results are being incorporated by the City's promotions contractors to further refine the
focus of the City's community promotions. Work on other Tourism Marketing Plan objectives continues, with
many strategic alliances strengthened.
For the fist time ever, the City has a full page ad running in the 2005 California State Visitors Guide with
cooperative funding from several local lodging properties. The City's promotions contractors are attending both a
consumer travel trade show and a travel writers conference this winter in an effort to target new customers and
increase public relations coverage.
New marketing efforts continue with the SLO Vintners and Growers Association events and the upcoming Trout
About Downtown art event.
Construction continues on a bed & breakfast on Santa Barbara Street. Staff continues to work with hotel
developers on several projects,including the Motel Inn remodel and expansion of two Calle Joaquin hotel projects
now in for development review. A report on the assessment of the local lodging industry is forthcoming. Staff
has also worked with many interested parties inquiring about locations for hotel development in the downtown.
Trolley service to the upper Monterey Street area hotels continues to receive positive feedback. All local hotels
and strategic alliance partners were invited to a recent tourism luncheon coordinated by Barnett, Cox and
Associates to continue to provide information and opportunities to their industry. Work on the Tourism Task
Force begins with an ad hoc task force meeting in February 2005.
E-14
MAJOR CITY GOALS
ECONOMIC DEVELOPMENT: SALES TAX
Objective. Encourage and promote retail projects that will increase sales tax revenues.
Action Plan
Task • .
1. Identify retail types that would complement and augment existing market Ongoing
conditions. Develop a retail recruitment strategy to encourage new
retailers to locate.in San Luis Obispo on properties-zoned for this purpose.
Use direct mail and attendance at industry events to support recruitment
strategy. Hold quarterly meetings with local real estate brokers and
property owners.
2. Continue to contract with HmderliterdeLlamas(HdL)for sales tax Ongoing Complete
analysis services to analyze market conditions. thru 3rd
Quarter
3. Continue to conduct demographic research and information gathering Ongoing Complete
about the City,its residents,its visitors and the region to provide to
individuals,businesses,real estate professionals and others in analyzing
San Luis Obispo for their business purposes. Continue to use the UCSB
Economic Forecast Project as a data source.
4. Continue to facilitate and coordinate City involvement in major Ongoing
development projects as directed by the Council.
• In particular,continue to facilitate the Copelands Project toward Complete
construction.
• Continue involvement in the proposed San Luis Marketplace Project. Complete
through negotiations,Development Review,EIR,Annexation and Pre-
zoning and Agreements for Sales Tax Reimbursement.
• Continue involvement in the Airport Area Specific Plan and Ongoing
Annexation.
5. Continue to conduct"economic gardening"in the retail industry through Ongoing
existing customer service oriented programs like the Quick Response
Team,the Economic Development Program's involvement in major
development projects,the Economic Development Program's high level of
customer service to individuals,businesses and real estate professionals.
6. Continue to support the Downtown Strategic Plan. Focus support on Ongoing
efforts that maintain the retail health of Downtown and increase customer
sales in a sustainable way.
7. Explore training opportunities,with local agencies like Cuesta College Ongoing Complete
Institute for Professional Development,Private Industry Council,Small
Business.Development Center and others to assist local retailers in
improving their marketing efforts and their"E"Business presence..
8. Promote shopping as an activity for visitors to San Luis Obispo. Ongoing
E-15
MAJOR •
Jask Original Revised
9. Continue to work with auto dealers in the City. When possible,pursue the Ongoing
expansion of the Auto Park Way area. Consider broadening the program
of incentives to auto dealers who relocate out of downtown to Auto Park
Way to include those who relocate out of downtown to other acceptable
sites in the City. Continue to assist Stanley Motors in its efforts to relocate
to a larger,new facility. Work closely with remaining Downtown auto
dealers to find new locations that are more functional. Explore the reuse
of Downtown auto dealer locations for other retail purposes. If space is
available,encourage new car lines to locate in San Luis Obispo.
10. Advocate for legislation to extend sales tax to include Intemet.sales. Ongoing
11. Conduct an assessment of current retail conditions by surveying existing 9/03 Complete
retail centers,identifying the types of retail business located in existing
centers,identifying retail center property owners or representatives.
12. Develop a"Shop Locally"marketing and PR campaign to encourage 11/03 Complete
residents to purchase goods in the City. Focus on branding San Luis
Obispo as the shopping destination for the region. Work with the
Chamber of Commerce,Downtown Association and others to coordinate
efforts and message about shopping in San Luis Obispo.
13. Explore the potential annexation of the McBride Property and Gap 2/04 Ongoing
Property if the Dalidio Property is annexed.
14. Work with each retail area in the City to define itself and develop,when 9/04 Ongoing
possible,niche-marketing efforts. Work closely with property owner and
businesses in each.area
Status Summary: 80% Complete. Staff continues to work on a strategy for further enhancing the retail sector,
which will include a competitive assessment and discussion of market opportunities. Work with the City's sales
tax advisor (Hinderliter d - .lamas) continues, as does involvement with the UCSB Economic Forecast Project.
The Copelands Project is under construction and on time to open in late Spring 2005. Staff has provided Costco
with continual assistance during the processing of its building permit and other agency permits and in negotiating
a reimbursement agreement with them. Construction on Costco is expected to commence in early Spring 2005.
Involvement in major development projects continues including: the Airport Area Specific Plan, the anticipated
Chinatown Project and the development of Madonna Family properties on Los Osos Valley Road for retail uses.
Action by LAFCO on the Dalidio property annexation is on hold at the request of the applicant pending the
outcome of the three referendums.
Staff has provided high levels of customer service,with particular attention to Quick Response Team Meetings,to
professionals seeking office space(health care professionals in particular), to several automobile dealerships, and
to many locally owned small businesses in the downtown and neighborhood and regional commercial centers.
Work with Cole Motors is complete(they opened for business at their new location)and work with Smith Volvo
continues on their relocation to Broad Street. Staff has worked with a potential developer of the McBride
Property. A Shop Locally program was begun during the holiday shopping season. It received a great deal of
media coverage and numerous businesses now display the stickers to remind community members of the
campaign. The Seismic Coordinator has continued outreach to the tenants of URM buildings in the Downtown to
access their needs during the retrofit process. Significant work by the Seismic Coordinator has been undertaken
on a Federal grant opportunity. An Economic Recovery Plan for local businesses in the event of a disaster is in the
process of being developed.
E-16
MAJOR CITY GOALS
LONG-TERM FISCAL HEALTH
Objective. Develop a comprehensive strategy for preserving essential services, adequately maintaining existing
facilities and infrastructure, and protecting the City's fiscal health.
Action Plan
OriginalTask
1. Organizational Productivity. Continue organizational vitality program Ongoing
in improving productivity and customer service.
2. Fiscal Independence. Support AB 1412(Wolk), which would allow local Ongoing Complete
voters to approve an increase of 0.25%or 0.5%in the local sales tax rate
without special legislation.
3. Legislative Advocacy. Continue working closely with our employee Ongoing
associations,the League of California Cities,other local governments,
professional associations and other groups to prevent further State raids on
city revenue sources.
4. Review and Monitor the City's Fiscal Condition. Continue to Ongoing
effectively review and monitor the City's fiscal condition on an ongoing
and timely basis,including on-line access to financial data,quarterly
newsletters,focused reporting on key revenues,mid-year budget reviews
and preparation of annual financial reports(CAFR)in accordance with
generally accepted accounting principles and nationally recognized
excellence in financial reporting guidelines.
5. Analyze Feasibility of Revenue Ballot Measure in 2004. Use
professional assistance in analyzing the feasibility of a revenue ballot
measure in March or November 2004:
a. Enter into an agreement with The Lew Edwards Group. 7/03 Complete
b. Complete the feasibility analysis and present the results to the Council 11/03 Complete
for a"go/no-go"decision in taking the next step in preparing for a
revenue measure in 2004.
Status Summary: 90% Complete. The following highlights the status of key milestones.
Legislative Advocacy. Staff worked closely with the Regional Coordinator for the League of California Cities to
develop and implement a legislative response strategy for dealing with State takeaways, which resulted in the
passage of Proposition 1A in the November 2004 election.
Review and Monitor the City's Fiscal Condition. In addition to ongoing financial reports, we presented the
Council with a formal "first quarter review" of the City's financial condition on November 4, 2003. On January
6, 2004, we presented the Comprehensive Annual Financial Report for 2002-03 to the Council;and presented the
Mid-Year Budget Review to the Council on February 17, 2004. For the 2004-05 Financial Plan.Supplement, we
presented comprehensive tate reviews and multi-year forecasts for the enterprise finds to the Council on June 1,
2004; and the Preliminary Budget to the Council on June 15, 2004. We have also continued to issue quarterly
financial newslettus—including an interim report on General Fund financial results for 2003-04 in August
2004—as well as ongoing focused reports on sales tax revenues,TOT revenues, and cash and investments. Most
E-17.
MAJOR •
recently, on December 14, 2004 we presented the Comprehensive Annual Financial Report for 2003-04 to the
Council as well as the results of the General Fund five-year fiscal forecast for 2005-10. Lastly, the Mid-Year
Budget Review is scheduled for Council consideration on February 15, 2005.
Analyze FeasibUity of Revenue Ballot Measure in 2004. On November_4, 2003, we presented the Council with
the results of the revenue ballot measure feasibility assessment. The Council concurred with the report
recommendation not to go forward with a measure at this time,but to return to the Council at a later date with an
analysis of the feasibility of forming an assessment district or adoption of property-related fees to assist with
funding storm drainage maintenance and improvements in conjunction with the Storm Drainage Master Plan.
E-18
OTHER • OBJECTIVES
Laurel Iane/OrcutllBullock Realignment per the Conceptual Physical Plan for the City's
Center.
Objective. Complete the realignment of Laurel
Lane/OrcuttBullock Streets. Status Summary: 35% Complete. A Council
study session was held to reduce the number of
Status Summary: 10% Complete. Due to state project alternatives. A second design contract has
funding shortfalls, design of this project remains on been negotiated to prepare final conceptual layouts
hold. We have taken the opportunity to obtain the for return to Council in July 2005.
parcel which will improve the alignment of Bullock
and Laurel lanes, and a new alignment will be Short-Range Transit Plan
developed and design completed. When State or
alternate funding is available, staff will request Objective. Implement the Short-Range Transit
UPRR to complete the crossing work and bid the Plan.
project
Status Summary: 85% Complete. The new bus
Santa Barbara Street Widening schedule and stops were implemented in January
2004. Ridership is increasing along modified routes.
Objective. Complete the existing widening project The second year implementation is underway,
for Santa Barbara Street from Highway 227/Broad including bus stop improvements and installation of
Street to Roundhouse. schedule holders,subject to FTA grant acquisition.
Status Summary: 0% Complete. State funding Airport Area Annexation
shortfalls have delayed funding of this project at
least until 2005-06. Objective. Annex the Airport Area.
Waterways Management Plan Status Summary: 80% Complete. Public
Implementation Program hearings and specific plan adoption are necessary
before the airport area can be annexed to the City.
Objective. Upon completion of the Waterways Planning Commission hearings on the AASP are
Management Plan, adopt an implementation scheduled to begin in March 2005, with public
program. hearings and Council review to occur in May or June
2005. The Margarita Area Specific Plan has been
Status Summary: 60% Complete. The Council adopted and the EIR for both specific plans was
has adopted the Plan. The design element has been certified by the Council in October 2004.
implemented; the storm water quality program has Annexation process of the Margarita area began in
been implemented; the stream maintenance January 2005.
guidelines were partially implemented last fall and
will be fully implemented by next fall; Da&U Property Annexation
implementation of creek and flood protection
projects will depend on significant funding that is Objective. Annex the Dalidio property.
simply not available and therefore it is not
anticipated that any of this program will be Status Summary: 90% Complete. Applications
implemented. The Army Corps of Engineers is have been made to annex the Dalidio property into
currently working on the NEPA clearance for the the City and develop the site with a retail power
Plan. The Zone 9 advisory committee is discussing center known as the San Luis Marketplace. The
what work is needed to begin studies for flood property will accommodate the development of a
protection projects. hotel, business park, affordable housing, access and
freeway infrastructure, and on and off-site open
Palm-Nipomo Parking Structure Plans space. The annexation, prezoning, and development
applications were approved and the Final
Objective. Complete an environmental assessment, Environmental Impact Report (EIR) certified by the
preliminary studies and evaluation of options for a City Council on July 7, 2004. The Council
new parking structure at Palm and Nipomo Streets subsequently approved a Development Agreement
E-19
OTHER COUN�CIL OBJECTIVES
with the project applicant on August 3'd, 2004. Downtown Improvements:
Annexation of the property into the City, which will Cultural Center Development
fully complete this objective, will require approval
by the Local Agency Formation Commission Objective. Encourage development of a Cultural
(LAFCO). Action by LAFCO is on hold at the Center (such as the Art Center, Mission Museum,
applicant's request pending the outcome of three Historical Museum, Little Theater and Children's
referendums that have been filed by citizens on the Museum) in the Mission Plaza extension area as
Council's project approvals. illustrated in the Conceptual Physical Plan for the
City's Center, and support this effort through the
Auto Center Expansion existing Partnership Policy where possible.
Objective. Continue to explore the possibility of Status Summary: 50% Complete. Staff continues
expanding Auto Center sites via annexation of the to work with the Community Partners in terms of
"McBride"and"Gap"properties. expansion and renovation of facilities, Grants-in-Aid
funding and general liaison support. In October of
Status Summary: 75% Complete. Conversations 2004, City Council approved a new parking in-lieu
with the property owners continue. An application fee category for Community Partners to encourage
is on file for the annexation and development of the development of new facilities. The Children's
"McBride" property for automotive and motorcycle Museum demolished their old building and has
sales uses. Staff has been working very closely with received building permits to begin their new facility.
the Madonna family as they master plan the The Art Center's plans for their new facility are
development of their holdings on Los Osos Valley currently undergoing ARC review. Both
Road,including the"Gap"property. organizations are actively involved in capital fund
raising campaigns.
E-20
status of MAJOR cIp pizoj Ects j
2004-05: Third Quarter
As of February 1,2005
Percent Complete
01/6 10% 20% 30% 400/6 50% 60% 70% 80% 90% 100%
dismansix
Water Reuse
2003-05 Paving Program
Foothill Bridge Replacement
Bill Roalman Bicycle Boulevard: Phase 1
Palm-Morro Parking Structure/Offices
Damon-Garcia Athletic Fields
Ludwick Center Remodel
Energy Conservation Projects
• - DESIGN
Water Facilities Master Plan Projects
Tank Farm Sewer&Lift Station
Laurel Lane/Orcutt/Bullock Realignment
Santa Barbara Street Widening
Therapy Pool
8 Chorro Park Athletic Fields
Radio System Upgrade
MENS..amb
UNDER
Groundwater Development
Wastewater Facilities Master Plan Projects
Higuera Street Widening
LOVR Interchange
Railroad Trail:Jennifer Bridge to Cal Poly
Palm-Nipomo Garage
Public Safety Dispatch Upgrade
E-21