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HomeMy WebLinkAbout06/20/2006, PH 6 - ADOPTION OF 2006-07 BUDGET council ht"u,N" June 20,2006 JAL ac,Enc)a nEpont 1W.Nu. C I TY OF SAN LU I S O B I S P O FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance& Informaton Technology Carolyn Dominguez, Finance Manager SUBJECT: ADOPTION OF 2006-07 BUDGET CAO RECOMMENDATION Adopt a resolution approving amendments to the 2005-07 Financial Plan and appropriating funds for fiscal year 2006-07. DISCUSSION Consistent with the City's two year approach to the budgetary process, the 2006-07 Budget presented for formal Council adoption at this time has been prepared using the 2005-07 Financial Plan as its primary foundation. It also incorporates the analysis presented to Council as part of the 2005-06 mid-year review on February 21, 2006; the enterprise fund rate reviews held on June 6, 2006; and other budget changes affecting 2006-07 approved by the Council since the adoption of the 2005-07 Financial Plan such as the community development block grant program. A comprehensive analysis of the significant budget issues facing the City for 2006-07 along with recommended supplemental appropriations are included in the Introduction(under Budget Message and Budget Highlights)of the accompanying Preliminary 2006-07 Budget. ATTACHMENT Resolution amending the 2005-07 Financial Plan and appropriating funds for 2006-07 ENCLOSURE Preliminary 2005-07 Financial Plan Supplement and 2006-07 Budget G:\Finance\Budget FoldersTinancial Plan Supplements\2006-07\Council Agenda Report,Budget Adoption RESOLUTION NO. (2006 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING AMENDMENTS TO THE 2005-07 FINANCIAL PLAN AND APPROPRIATING FUNDS FOR FISCAL YEAR 2006-07 WHEREAS, the Council adopted the 2005-07 Financial Plan on June 21, 2005, which established comprehensive financial and policy guidelines for fiscal years 2005-06 and 2006-07; and WHEREAS, the 2005-07 Financial Plan included appropriations for fiscal year 2006-07; and WHEREAS, the Council has reviewed proposed changes to the 2005-07 Financial Plan to be effective for fiscal year 2006-07 after holding noticed public hearings; and WHEREAS, the City Administrative Officer has submitted the 2005-07 Financial Plan Supplement and Preliminary 2006-07 Budget to the Council for their review and consideration. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo hereby approves amendments to the 2005-07 Financial Plan and appropriates funds for fiscal year 2006-07. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted on June 20, 2006. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jona . Lowell, City Attorney, counat memomnbum IVEDcouNCIL EtbCDDDIRL Lr. FIN DIR June 16,2006 JUN 16 1006 �ACAOO TFIRE CHIEF ®'ATTORNEY Fi PW DIR TO: City Council SLO CITY CLERK R CLERK/ORIG R POLICE CHF ❑ DEPT HEADS R-REC DIR FROM: Ken H lan,Cit Administrative Officer � A43 0 UTIL DIR John M deville,Director of Community Development � E HRDIR RED FILE SUBJECT: SUPPLEMENTAL INFORMATION: 2006-07 BUDGET ADOPTION MEETING AGENDA RECOMMENDATION DATE ITEM # L As part of budget adoption for 2006-07, approve converting the Housing Manager position from a contract to regular position. As discussed below, there are no adverse fiscal impacts associated with this change but it will recognize that the services provided by the Housing Manager are now part of the City's ongoing operations and significantly improve our ability attract qualified applicants for this important, now-vacant position. DISCUSSION On June 20, 2006, the Council will consider adoption of the 2006-07 Budget. As part of this action, we recommend that the Council approve converting the Housing Manager position from a contract to regular position for the following reasons: 1. Regular Part of Our Operations. The services provided by this position are now part of our regular operations,and is essential in achieving our housing program goals and objectives. Under our Human Resources Management policy, contract positions should only be used for pilot programs or limited- term projects where we need specialized skills for a specific period of time: they should not be used for services delivered on an ongoing basis. Under this criteria, it made sense for this to be a contract position when we created it almost three years ago. However,this is no longer the case. The attached details the duties of the Housing Manager and recent accomplishments.. 2. No Fiscal Impact. The position will continue to be funded through the Community Development Block Grant. This is conceptually no different from the 70 regular employees funded by our enterprise funds. In short, regular does not mean General Fund. Additionally, there is no difference in cost between keeping this a contract versus regular position: we already provide this contract position with the same salary and benefits as a regular employee. 3. Improved Recruitment. With the recent promotion of Doug Davidson to Deputy Community Development Director, the Housing Manager position is now vacant. Our ability to recruit and fill this position will be significantly improved by making it a regular position. CONCURRENCES The Director of Human Resources and Director of Finance&IT concur with this recommendation. ATTACBMENT The Value of the Housing Programs Manager Position G:Finance/Budget FoldersB;nancial Plan Supplements/2006-07/Council Agenda Reports/June 20,2006/Housing Manager Position • I Red File—Supplemental Budget Information Page 2 The Value of the Housing Programs Manager Position The goal of creating the Housing Programs Manager was to accomplish more City housing goals though a staff position than spending the cost of the staff position directly on the production of an affordable housing project. The accomplishments outlined below span a two year period. Most of these accomplishments would not have been achieved at all (or achieved at a lower level), if not for the added resource of the Housing Programs Manager position. • Tumbling Waters (Orcutt Road) - 175 units, "affordable-by-design", including 12 deed restricted affordable units — approved by the Planning Commission (October 12, 2005) and the City Council (November 15, 2005). In a public-private partnership, the City was awarded Proposition 46 funds (BEGIN program) to provide $30,000 in down payment assistance to 10 home buyers, for a total grant of$300,000. On November 15'', the Council agreed to match the $30,000 State grant for each of the 10 units from the City's Affordable Housing Fund. The developer is also an integral part of the program by contributing one dollar for every three the City allocates. By leveraging State, local, and private funds, 10 affordable housing units — beyond the requirements of the Inclusionary Housing Ordinance - will become part of the City's affordable housing inventory. It could easily have cost the City by itself over $2,000,000.00 to fund the building of 10 affordable housing units. • Housing Authority (North Chorro Street) —approved project of 16 apartments for low and very- low income households. The City provided gap financing and tax credit application assistance to enable the Housing Authority to acquire the land. • People's Self-Help Housing (South Higuera Street.) - 30 apartments for low and very-low income households. Project received its land use approvals and the Council will consider using $350,000 of the City's Affordable Housing Fund to help fund the project in summer, 2006. • Broad St. Mixed Use — The Planning Commission and City Council approved an innovative mixed-use project, next to the old Vons site, with 70 residential units and 30,000 square feet of commercial. At least 6 affordable dwellings, rentals and for-sale, will be provided on the site. • Margarita Area Specific Plan — The Specific Plan has been approved and tentative maps are being processed for the western part of the area. Approximately 315 dwellings are planned for this portion of the Margarita Area; the Inclusionary Housing Requirement results in 49 affordable homes. The City, Housing Authority, and developer have come up with an affordable housing plan that could serve as a model for future annexation areas. The developers are dedicating land (2.75 acres) in two distinct locations, including completion of the associated public improvements, to the Housing Authority. Staff and the developer are now exploring ways to go beyond that minimum number. • Downtown: City staff is facilitating development of several new downtown housing projects. Staff is reviewing General Plan policies and Zoning regulations to clarify building height and intensity standards as directed by Council in March,2006. • Cooperative Housing — Humbert Street: The City helped the Housing Authority acquire this site from the UP Railroad with a $600,000 loan from the Affordable Housing Fund. City staff also assisted on the HELP application; a competitive affordable housing funding program from Ca1HFA.. The proposed project is approximately 65 workforce housing units of a cooperative concept whereby a member owns a collective share of the project and enjoys the tax advantages of home ownership. • State/Federal Grants: Due to the certified Housing Element,the State 2005 Workforce Housing Reward Grant will reward the City with approximately $44,000 for approving 40 low-income housing units in 2004. The BEGIN Program($300,000 for down payment assistance)is a public- private partnership and will leverage 10 additional affordable dwellings in the Tumbling Waters project. In September, 2005, the City made an application for CalHome funding of$500,000 for first-time home buyer assistance. The City has been awarded $231,000 for a First-Time Homebuyer Program using federal HOME program funds. The City continues to receive federal Red File—Supplemental Budget Information_ Page 3 CDBG funds to benefit the low- and moderate persons of the community. CDBG funds help to operate the City's Homeless Shelter and assist in the development of affordable housing for lower income households. In total for 2005,the City was awarded$600,000 in grants funds. • City Affordable Housing Fund (AHF): The AHF, established in 1999, implements the City's Inclusionary housing requirement by providing a fund for the collection of in-lieu fees. To date, $1,300,000 has been awarded for affordable housing projects, including$1Million in 2005 for the Housing Authority Cooperative Housing and first-time homebuyer program for Tumbling Waters. • San Luis Obispo County Housing Trust Fund: The City agreed to contribute $30,000 in 2006 from its Affordable Housing Fund to continue assisting in the start-up operations of the Housing Trust Fund; a county-wide non-profit organization dedicated to increasing affordable housing. In September, the Housing Programs Manager was appointed as the City representative on the Housing Trust Fund Commission. • Public Outreach: The City is conducting an increased and ongoing public outreach campaign, seeking more funding, and spreading the word about opportunities. The Housing Programs Manager has spoken before many community groups, including the Chamber of Commerce, SLO Association of Realtors, AIA, Lions Club, SLO Property Owner's Association, and KKAL radio. Two brochures have been completed to encourage affordable housing efforts. • Visit the Housing website: http://www.sloci!y.org/commuiiitydevelol)ment/Housing/housinQ.asn.