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HomeMy WebLinkAbout11/16/2006, 1-5 - BUDGET WORKSHOP: ""SETTING THE TABLE"" FOR THE 2007-09 GOAL-SETTING AND FINANCIAL PLAN PROCESS" council himm 11-16-06 acEnoa Report '.N..b -s CITY O F SAN LUIS O B I S P O FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance & Information Technology ✓ SUBJECT: BUDGET WORKSHOP: "SETTING THE TABLE"FOR THE 2007-09 GOAL-SETTING AND FINANCIAL PLAN PROCESS CAO RECOMMENDATION Review and discuss the accompanying status reports in preparation for the 2007-09 goal-setting and Financial Plan process: 1. Status of General Plan Implementation Programs 2. Long-Term Capital Improvement Plan: Summary of Facility and Infrastructure Improvements Through General Plan Build-Out 3. Status of 2005-07 Goals and Objectives 4. Status of Current CII'Projects 5. General Fiscal Outlook DISCUSSION As discussed in the August 15, 2006 agenda report to the Council outlining the proposed process and schedule for the 2007-09 Financial Plan, this "setting the table" workshop is the first "formal" step in this process. Its purpose is to provide a comprehensive review of the status of current plans, goals and policies. In short, it is a meaningful opportunity to consider "where we are and where we've been"before launching into`where do we want to go next." This is an especially appropriate start for Council goal-setting, as we have always defined the purpose of the City's budget process as asking ourselves: of the many goals, objectives and work programs set forth in our long-term planning and policy documents, which are we going to focus on in the next two years? With this approach, the City's two-year budget process becomes our key tool in programming the implementation of these plans and policies by allocating the resources necessary to do so. In short, we do not start the goal-setting process from scratch with an empty plate: it needs to be informed by our adopted long-term plans, current two-year goals and fiscal outlook. Accordingly, we have prepared the following five resource documents for this workshop in providing a comprehensive menu of candidate goal entrees for 2007-09. Adopted Long-Term Plans and Goals These include the General Plan (and its many elements), Urban Water Management Plan, Water and Wastewater System Master Plans, Pavement Management Plan, Short Range Transit Plan, Budget Workshop:2005-07 Goal-Setting and Financial Plan Process Page 2 Access and Parking Management Plan, Neighborhood Traffic Management Program, Bicycle Plan, Public Art Policy, Conceptual Physical Plan for the City's Center, Information Technology Strategic Plan and Facilities Master Plan. These plans were subjects of significant staff analysis, community involvement and advisory body and Council deliberation before they were adopted. As such, these should play an important role as a starting point in setting goals for the next two years. To facilitate taking a close look at these long-term plans as the first step in the goal:setting process, we have prepared two resource documents, which accompany this report: 1. Comprehensive overview of the current status of General Plan implementation programs. 2. Long-term capital improvement plan (CII') summarizing the costs of the new facilities and infrastructure that will be needed to implement our General Plan, or achieve the goals of other important plans and policies previously adopted by the Council. In preparing these reports, our goal was to make them comprehensive on one hand,but concise and meaningful on the other. With this goal in mind, each of the reports is introduced by a short. summary of key findings. Status of Current Two-Year Major City Goals,Other Objectives and CIP Projects Some of our Major City Goals (and"Other Important Council Objectives)may not be complete by June 2007,as such, the"carryover"work on them may be candidate major City goals for 2007-09. And even for those goals where the specific work programs for 2005-07 may be completed by June 2007, there maybe"spin-off' tasks as a result. This is especially true for work programs in 2005- 07 where the objective was to complete plans or studies: with those now in place, a likely "spin- off'into 2007-09 may be implementation of these studies. To assist with this review,we have prepared the accompanying reports: 1. Status of 2005-07 Goals and Objectives 2. Status of Current CIP Projects Each of these reports is introduced by a short summary of key findings. General Fiscal Outlook Along with long-standing plans and current goals, it is also important to place goal-setting in the context of our fiscal condition and outlook. We plan to present a comprehensive look at our fiscal outlook when we present the results of our five-year General Fund fiscal forecast to the Council at the upcoming"Budget Foundation"workshop scheduled for December 12, 2006. However, in "setting the table" for this forecast, we have prepared the attached report outlining our General Fiscal Outlook, which highlights six key factors that will shape our fiscal outlook in the next two years: o Budget Workshop: 2005-07 Goal-Setting and Financial Plan Process Page 3 1. Where we've been: past fiscal challenges and budget balancing actions 2. Interim financial results for 2005-06: our current financial condition 3. Current trends 4. Retirement costs: projected stabilization of rates and costs is happening 5. Infrastructure and facilities maintenance 6. Results of November 2006 sales tax measure Workshop Summary While the goal-setting process can certainly be used to initiate goals that have never been on our radar before, it should start from where we are today, based on the long-term plans and objectives we have already adopted and the high-priority programs and projects already underway. And we should place this in the context of our fiscal outlook. Hopefully, this workshop's first step in "setting the table" for the goal-setting process provides a meaningful look at these issues. Next Steps in the Financial Plan Process: Key Dates The following summarizes key dates for the goal-setting process before issuing the Preliminary Financial Plan: When What Tuesday,December 12 Budget Foundation. Finalize plans for the goal-setting process; review Council Chambers Financial Plan policies and organization; review audited fmancial results 7:00 to 10:00 PM for 2005-06; and discuss the results of five-year fiscal forecast. Wednesday,January 10 Community Forum. Consider comments and suggestions from Ludwick Community Or community groups; interested individuals and Council advisory bodies. 6:30 to 9:30 PM Saturday,January 27 Council Goal-Setting Workshop. Discuss candidate goals presented at Library Community Room the January 10 forum; consider Council member goals;prioritize and set 8:30 AM to 4:00 PM major City goals. Tuesday,February 6 Follow-Up to Council Goal-Setting if Needed. Continued Regular Meeting consideration of goal-setting at the next regularly scheduled Council Only if needed meeting following the January 27 workshop if needed. Tuesday,February 10 Mid-Year Budget Review. Consider the City's fiscal status at the mid- Regular Meeting point of the fiscal year and make appropriation adjustments as needed. Tuesday April 10 Major City Goal Work Programs. Review and conceptually approve Council Chambers detail work programs to accomplish major City goals; and set strategic 7:00 to 10:00 PM budget direction as needed. As outlined in the calendar approved by the Council in August 2006, we plan to finalize and issue the Preliminary Financial Plan by May I T, and hold the first three preliminary budget workshops on the evenings of May 24 (Financial Plan overview and General Fund operating programs), May 29 ® O Budget Workshop: 2005-07 Goal-Setting and Financial Plan Process Page 4 (General Fund capital improvement plan projects) and May 31 (Enterprise Fund programs,projects and rates). The Financial Plan is also scheduled to be a topic of discussion at the following two regular Council meetings (June S and 19), with Financial Plan adoption planned for the June 19 meeting. SUMMARY As presented in the General Fiscal Outlook, our financial situation as we enter the 2007-09 Financial Plan process is much better than it has been in many years. This is due to three key factors: 1. Passage of Measure Y 2. Structural budget balance already in place 3. Stronger beginning financial condition based on fiscal results for 2005-06 However, even with this improved situation, significant challenges remain ahead of us in answering the fundamental policy questions posed by the budget process: Of all the things we want to do in making our community an even better place to live, workand play, which are the most important? And what are the resource trade-offs we have to make to do them? ATTACHMENTS 1, Status of General Plan Implementation Programs 2. Long-Term Capital Improvement Plan: Summary of Facility and Infrastructure Improvements Through General Plan Build-Out 3. Status of 2005-07 Goals and Objectives 4. Status of Current CIP Projects 5. General Fiscal Outlook G:Budget Folders/Financial Plans/2007-09 Financial Plan/Council Goal-Setting/November 14 Workshop/Council Agenda Report ATTACHMENT 1 Attachment 1 STATUS REPORT Implementation Programs -General Plan November 2006 Cit! Of 7B5b � �6 san LUIS 0131SPO UfCE1VT�' %I STATUS OF GENERAL PLAN IMPLEMENTATION PROGRAMS November 2006 TABLE OF • INTRODUCTION Overview 1 Report Organization 1 Findings 3 STATUS OF GENERAL PLAN IMPLEMENTATION PROGRAMS BY ELEMENT Land Use Element 5 Housing Element 9 Circulation Element 12 Conservation and Open Space Element 15 Noise Element 21 Safety Element 22 Parks and Recreation Element 24 Water and Wastewater Element 26 STATUS OF DOWNTOWN PLAN IMPLEMENTATION PROGRAMS 27 city of san Luis oBi spo �z INTRODUCTION OVERVIEW The following schedules provide a concise yet comprehensive summary of the status of all General Plan implementation programs. As discussed in greater detail below, of the 402 individual implementation programs in the General Plan, 83% (333) of Status of Implementation Programs:All Elements them are completed or have been integrated into the City's ongoing 0High operations. 6% o Medium 10% Given the ambitious nature of our General Plan and its thirty-year time a Lav 1% 0 complete horizon, we believe that this or ongoing represents significant progress in aa% achieving General Plan goals: ®Difficulty to te Of the remaining 17% (69) of c 17 programs that are not yet complete, we have classified: ■ 1% (5) of them as being relatively easy to achieve from a resource perspective. ■ 6% (22) as being difficult to achieve. ■ And 10%(42) as being somewhere in between. Report Focus: Why Report on the Status of Programs? The City's General Plan is composed of a"building block"hierarchy of goals, objectives, policies and programs. Goals and objectives are direction-setters. They describe desirable conditions and preferred outcomes as they are applied to specific situations. Goals are generally not quantifiable, time-dependent or suggestive of specific actions for their achievement. Objectives generally state an intermediate step toward attaining a•goal. Policies are typically more specific statements that guide decision-making. Programs implement goals, objectives and policies. As such, monitoring our progress in implementing General Plan programs is an excellent way of monitoring our progress in achieving General Plan goals and objectives. And for this reason, it is the focus of this report. REPORT ORGANIZATION General Plan Elements. The report first organizes each of the implementation programs into one of our eight General Plan elements: ■ Land Use(LU) ■ Noise(N) ■ Housing(H) ■ Safety(S) ■ Circulation (Cl) ■ Parks and Recreation (PR) ■ Conservation and Open Space(COSE) ■ Water and Wastewater(WW) 1 - /-,3 INTRODUCTION Implementation Program Summary. A short "one-line" narrative is provided for each implementation program, referencing the specific General Plan Program number. (Each program is assigned a"line number" solely for easy internal reference within the report itself.) Lead Department. The lead responsible for implementing the program is presented. (In many cases, several departments work closely together in implementing the program; this simply indicates which department has the lead role in coordinating program implementation.) ■ Administration (ADM) ■ Parks and Recreation (P&R) ■ Community Development(CD) ■ Police(PD) e Finance& Information Technology(F&IT) ■ Public Works (PW) ■ Fire(FD) E Utilities(UT) Implementation Status. All programs are organized into one of two major"status" categories: 0 If it's complete (or will be complete by June 2007) or has been integrated into City operations as an ongoing program, this is noted with a"C" (complete) or an"O" (ongoing) in the first status column of the summary. For easy reference, within each element, completed programs are listed first in the summary, followed by those that are ongoing. © If it won't be completed (or an ongoing program) by June 2007, then we have rated how difficult it will be to complete on an "order of magnitude" (qualitative) basis using the following coding: Low (L) Minimal staff effort and no consultant assistance will be needed to complete the analytical work and coordinate stakeholder-public outreach. While this is a qualitative assessment by the lead department, this generally means that less than 80 hours of staff work and no additional budget resources will be needed to implement the program. Medium (tib: Significant staff effort, some consultant assistance or supplemental funding for operations or capital projects will be needed to complete the analytical work and coordinate stakeholder-public outreach or implement the program. Again, while this is a qualitative assessment by the lead department, this generally means between 80 to 500 hours of staff work and/or up to $25,000 for added budget resources will be needed to implement the program. High (H): Major staff effort, consultant assistance or supplemental funding for operations or capital projects will be needed to complete the analytical work, coordinate stakeholder-public outreach or implement the program. Generally, this means that more than 500 hours of staff work and/or more than $25,000 for added budget resources will be needed to implement the program. For easy reference, within each element, the incomplete programs follow those that are complete/ongoing, with the "low" difficulty programs listed first, followed by those that are "medium and high." -2- i INTRODUCTION Downtown Plan. The Conceptual Physical Plan for the City's Center(Downtown Plan) is not a General Plan Element. However, several of its programs are closely linked to the General Plan, and as such, the status of its programs are provided for supplemental information at the end of this report. It is organized in the same manner as the status report on General Plan program implementation. FINDINGS General Plan Programs Status Summary. As noted above, 82% of the City's General Plan implementation programs have been completed or integrated into the City's day-to-day operations. The following is a more detailed summary of the status of General Plan implementation programs by element: Plan Implementation Programs -Summary: Status of General Complete Difficulty to Complete Or Ongoing Low 11 Medium 11 High No. Pct 11 No. I Pct.11 No. I Pct 11 No. I Pct Total Land Use 55 750/ 00/ 12 16°/ 7 90 74 Housing 60 8B"/ 3 4° 6 9 1 7070 Circulation 52 800 2 . _ 3°/ 10 150/0 1 2°/ 65 -Conservation&Open Space 91 -- -to% _ 06/ 13 12°/ 9 80 113 Noise 4 100014 Safe 32A10001, 1 3% 1 3° 34 Parks&Recreation 36 0°/ 3 8% 39 Water&Wastewater 3 3 Total 1 333 83i/41 51 10141 421 100141 221 60402 Resource Requirements. Based on our qualitative assessment of the resources need to complete the implementation of the remaining programs, the following is a "high-level" assessment of the staff resources and added budget resources that will ultimately be needed to complete these programs at some point: Remaining Staff Effort Other Added Programs FTEs* Cost** Resources Total Low Dfficulty 5 0.2 32,500 32,500 Medium 42 7.2 988,700 1,050,000 2,038,700 High 22 15.0 2,071,600 2,200,000 4,271,600 Total 69 22.4 $3,092,800 $3,250,000 $6,342,800 *Annual full-time equivalent(FTE) **Includes salary, benefits and indirect costs But What's Their "Value?" These summaries show which programs remain undone, and the resources that would be needed to complete them. However, they don't address their relative value to the community compared with the effort that would be required to complete them. For example, it might be tempting to direct our resources to finishing-up the "low difficulty" programs to get them off our plate. However, this should be weighed against the value likely to be derived. In this case, we might have a greater impact in improving the community's quality -3 - /—"5, INTRODUCTION of life if we focused the same level of resources towards accomplishing a fewer number of"high value" (but relatively higher effort) programs. On the other hand, we would want to avoid undertaking high-effort but lower-value programs. In his book The Seven Habits of Highly Effective People, Stephen Covey presents a paradigm for assessing these "value versus effort" trade-offs, which can be summarized as follows in the context of allocating resources towards completing General Plan programs: •3 0 J Quadrant A Quadrant B Low Effort, High Value Low Effort, Low Value H O LL LL W Quadrant C Quadrant D High Effort, High Value High Effort, Low Value r _I x High Low VALUE In this model, we would want to first go to those programs falling in "Quadrant A:" low effort but high value." (These are the proverbial "low hanging fruit.") After this, Quadrants B and C are a"toss-up." However, in all cases, we would want to avoid any programs that might fall into Quadrant D. Ultimately, assessing the value of individual programs and directing resources towards completing them is the Council's decision (and in the final analysis, this is what the City's goal- setting and budget process is all about.) However, the staff can prepare an "order of magnitude" assessment of those programs we believe would have the most near-term benefits relatively quickly if the Council believes that this would be helpful background information in the goal- setting process. Downtown Plan Programs As reflected in this summary, two of the fifteen Downtown Plan implementation programs have been completed. . 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