Loading...
HomeMy WebLinkAbout06/19/2007, PH1-C - ADOPTION OF 2007-09 FINANCIAL PLAN council M"w,D� 6-19-07 acEnba Repoin �� ��•� CITY OF SAN LU I S O B I S P O FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance &Information Technology SUBJECT: ADOPTION OF 2007-09 FINANCIAL PLAN CAO RECOMMENDATION Adopt a resolution approving the 2007-09 Financial Plan and 2007-08 Budget. DISCUSSION After twelve Council budget workshops and hearings beginning in August 2006, the 2007-09 Financial Plan is ready for adoption. (The resolution approving the Financial Plan is provided in Attachment 1). Key features include: 1. Responds to Measure Y priorities: public safety, neighborhood street paving, traffic congestion relief, flood protection, senior services, neighborhood code enforcement and open spaceENITIMM preservation. • Public safety, including 2. Provides a balanced budget, both fiscally and from a restoring cut traffic patrol, service delivery perspective: operating revenues fully Fire Marshal and training cover operating costs; and reserves are maintained at positions policy levels. • Neighborhood street paving and pothole repair 3. Meaningfully invited community involvement, and . Traffic congestion relief responds to what we heard. Flood protection 4. Effectively integrates Council goal-setting.. • Senior citizen services and facilities 5. Is fiscally prudent and protects the City's long-.term . Neighborhood code fiscal health. In short, while the Financial Plan enforcement responds to current community priorities and provides for better services and facilities, it also maintains our Open space preservation long-standing commitment to long-term fiscal heath and responsible stewardship of the resources that have been entrusted to us. Changes to the Preliminary Financial Plan At the June 5, 2007 meeting, we reviewed Council direction to-date from the May 24, 29 and 31 budget workshops. These are summarized in Attachment 2. Adoption of 2007-09 Financial Plan Page 2 And Some More Good Grant News: OTS Traffic Safety Grant. We noted in the major City goal work program for public safety that there was a possibility that some of the cost for the proposed traffic safety officer position might be offset by a grant from the State Office of Traffic Safety (OTS). We were recently notified by OTS that our grant application for $313,500 has been approved. Key features of the two-year grant, which runs from October 1, 2007 to September 30, 2009, include: 1. Full funding of the position in the first year and 50% in the second year($197,000). The City will be responsible for all staffing costs after this. 2. Funding for initial uniforms, equipment, motorcycle and training ($36,200). 3. Overtime funding for"DUI" checkpoints (one each year: $12,400). 4. Radar enforcement equipment totaling $67,900: ten patrol-mounted radar units ($31,100); five motorcycle-mounted radar units ($18,500); and five hand-held radar units ($17,200). Given its workscope and timeframe, this grant will have a net positive impact compared with the Preliminary Financial Plan of$133,200 in 2007-08; and $83,100 in 2008-09. Based on the grant term, there will be a final offset of $16,900 in 2009-10, resulting in a total savings of $233;200 over the next three fiscal years. (Funding for the DUI checks and radar equipment totaling $80,300 are in addition to the workscope reflected in the Preliminary Financial Plan.) This change is also reflected in Attachment 2 and will be included in the final budget document. Final Documents After Council adoption of the 2007-09 Financial Plan, we will prepare and distribute a final version reflecting all approved changes from the Preliminary Financial Plan. Based on these changes, we will also revise and distribute a final version of Appendix A: Significant Operating Program Changes; and Appendix B: Capital Improvement Plan. Along with a standard printed distribution of these documents, they will also be published on the City's web site. Additionally, we will prepare a Budget-in-Brief that highlights the City's budget process, key budget features, major City goals and basic "budget facts." This budget summary is widely distributed: it will be available at all public counters, included with the utility billings in August and published on the City's web site. With this broad distribution, it will also meet our Measure Y reporting commitments to the community on the use of these funds. Ongoing Monitoring Adoption of the Financial Plan is the beginning—not the end—of a continuous financial management process. Ongoing monitoring efforts include: Adoption of 2007-09 Financial Plan Page 3 1. Interim Financial Reports. On-line access to "up-to-date" financial information is provided to staff throughout the organization. Additionally, comprehensive financial reports are prepared monthly to monitor the City's fiscal condition, and a concise but comprehensive report is issued on a quarterly basis. These are complemented by special reports such as the quarterly Sales Tax Newsletter, Monthly TOT Report and Monthly Investment Report. 2. Goal Status Reports. Formal reports are provided to the Council on an ongoing basis on status of Major City Goals, other important objectives and Capital Improvement Plan projects. These are supplemented by ongoing updates through Agenda reports, Council Notes and other special reports. 3. Mid-Year Budget Reviews. The Council formally reviews the City's financial condition and makes "course corrections" as needed six months after the beginning of each fiscal year. 4. Financial Plan Supplement for 2008-09. While we prepare a two-year Financial Plan, appropriations are still made annually. As such, we will return to the Council in June 2008 for formal approval of the 2008-09 Budget. However, these "second year" appropriations will be based on the foundation developed during the two=year planning and budgetary process. In short, the Supplement is much like our mid-year budget reviews, and focuses on changes since adoption of the Financial Plan. 5. Comprehensive Annual Financial Report. This year-end report shows the final results of the City's financial operations for all funds. It includes audited financial statements by the City's independent certified public accountant as well as a comprehensive "transmittal memorandum" highlighting key trends and findings about the City's financial condition. Budget Process Review Consistent with our long-standing practice, once the dust has settled for a few months on this Financial Plan process, we will review areas where it went well, and areas where we can improve in the future. This will include soliciting comments from the Council as well as Department Heads, Budget Review Team and key staff from the departments involved in the budget preparation process. This type of analysis has been very valuable in the past in surfacing areas of improvement. After completing this review, we will return to the Council at an appropriate time with recommendations for the 2009-11 Financial Plan process. ATTACHWNTS 1. Resolution approving the 2007-09 Financial Plan and 2005-06 Budget 2. Summary of Budget Changes and Council Direction G:Budget Folders/Financial Plan/2007-09 Financial Plan/Preliminary Budget/Agenda Reports/Adoption of 2007-09 Financial Plan C-' - Attachment 1 RESOLUTION NO. (2007 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE 2007-09 FINANCIAL PLAN AND 2007-08 BUDGET WHEREAS, the City Administrative Officer has submitted the 2007-09 Financial Plan to the Council for its review and consideration in accordance with budget policies and objectives established by the Council; and WHEREAS, the 2007-09 Financial Plan is based upon extensive public comment and direction of the Council after twelve scheduled budget study sessions and public hearings. NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo that the 2007-09 Financial Plan is hereby approved and that the operating, debt service and capital improvement plan budget for the fiscal year beginning July 1, 2007 and ending June 30, 2008 is hereby adopted. On motion of seconded by and on the following vote: AYES: NOTE: ABSENT: the foregoing Resolution was passed and adopted on June 19, 2007. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED: J Lowell, City Attorney Attachment 2 • ' • M. • o • • The following summarizes Council direction and changes to the Preliminary Financial Plan. From the May 24 Budget Workshop 1. Graffiti. The Police and Public Works Departments will report back to the Council within the next three months on the scope of the problem, existing strategies for addressing graffiti and any proposed new efforts. This will be added as a Program Objective in the 2007-09 Financial Plan in the Police Administration and Public Works Administration Programs. 2. Major City Goal: Senior Citizen Facilities. We will attempt to accelerate the schedule for the Senior Center parking lot to see if it can be completed sooner than November 2008, prior to the rainy season, but without short-cutting the advisory body and public input process. The commitment to complete construction by the rainy season, along with any changes in the schedule, will be reflected in the work program for this goal in the final 2007-09 Financial Plan. 3. Major City Goal.: Open Space Preservation. We will revise the "Action Plan" on page B- 94 to reflect a target date of August 2007 for hiring a contractor for homeless camp cleaning. From the May 29 Workshop 1. DARE Vehicle. We have evaluated the use of a hybrid option (Ford Escape) for this fleet replacement. In follow-up with Police and Public Works, the Ford Escape will meet program transportation needs and the cost can be accommodated within the proposed budget. Accordingly, we recommend replacing the DARE vehicle with a hybrid Ford Escape. This change will be reflected in the 2007-09 Financial Plan as well as Appendix B: Capital Improvement Plan. 2. Pavement Management Plan. Public Works staff will brief Council Member Carter on the Pavement Management Plan; and depending on the outcome from this briefing, we may hold a follow-up study session with the Council. 3. Mid-Higuera Street Median. We will return with an evaluation of right-of-way options for the mid-Higuera Street widening as part of the Council's review of environmental documents for this project. 4. Chorro Street Sidewalks: Murray to Meinecke. This will be considered as part of the 2009-11 Financial Plan process. 5. Stockton Field Synthetic Turf. We will schedule a Council study session on this within the next three to six months, prior to incurring any consultant costs for study or design. We will C Jr t n Attachment 2 SUMMARY OF AND • DIRECTION invite members of the Parks & Recreation Commission, youth sports organization and other field users to this study session. This will be added as a Program Objective in the 2007-09 Financial Plan in the Parks & Recreation Administration program. 6. Public Art Policy. In conjunction with the planned report to the Council recommending the allocation of public art funding to specific projects in Fall 2007, we will return with a discussion of the public art policy and project costs that should be included in calculating the "1% for public art" amount. Completing this analysis will be added as a Program Objective in the 2007-09 Financial Plan in the Parks & Recreation Administration program. 7. Revised Public Art Funding. Under the current public art policy, underground projects are exempt, including storm drains. Based on this review, the Preliminary Financial Plan includes three underground, storm drain related projects that will be eliminated from the 1% calculation based on this: corrugated metal pipe (CMP) replacements, minor storm drain facilities and culvert repairs. This results in the following change: Revised Public Art Funding 2007-08 2008-09 2009-10 2010-11 CMP Replacement 666,200 696,200 729,700 728,700 Minor Storm Drain Facilities 25,000 25,000 25,000 25,000 Storm Drain Culvert Repair 40.,000 90,000 40,000 90,000 Total Project Cost Reduction 731,200 811,200 794,700 843,700 Total Public Art Reduction @ 1% 1 (7,300) (8,100) (7,900) (8,400) Preliminary Financial Plan 1 51,600 1 59,0061 89,700 52,800 Revised Funding Recommendation 44,300 1 50,900 1 81,800 44,400 8. Johnson Ranch Open Space. The title of this project will be changed to: Johnson Ranch Public Access Improvements. 9. City Hall Steps and Walkway. Along with other possible "sprucinb up" of the exterior of City Hall, we will consider improvements to the City Hall steps and walkway as part of the 2009-11 Financial Plan process. 10. Railroad History Museum. We will return to the Council at the mid-year budget review with an evaluation of our responsibility for additional improvements under our agreement with the San Luis Obispo Railroad Museum, and based on this, cost estimates, phasing strategies and funding sources as appropriate. This will be added as a Program Objective in the 2007-09 Financial Plan in the Public Works Administration program. -2- i Attachment 2 SUMMARYOF • DIRECTION From the May 31 Workshop Parking In-Lieu Fees. We will return for consideration of a rate increase in parking in-lieu fees within six months. This will be added as a Program Objective in the 2007-09 Financial Plan in the Parking program. From the June 5 Council Meeting Railroad Safety Trail Bridge: Highway 101 Crossing. Based on recent notification of grant award from Caltrans, we will include $550,000 in the 2007-09 Financial Plan for this project, funded as follows: Railroad Safet y Trail Bridge: Highway 101 Crossing State Grant(9001o) 495,000 Local Matching Share (10%) General Fund (50% of Local Match) 27,500 Transportation Impact Fee Fund(50% of Local Match) 27,500 Total $550 000 OTS Traffic Safety Grant We were recently notified that the State Office of Traffic Safety (OTS) has approved our grant application for $313,500. This two-year grant runs from October 1, 2007 to September 30, 2009 (spanning three City fiscal years), and includes the following key features: 1. Full funding of the position in the first year and 50% in the second year($197,000). The City will be responsible for all staffing costs after this. 2. Funding for initial uniforms, equipment, motorcycle and training ($36,200). 3. Overtime funding for"DLT'checkpoints (one each year: $12,400). 4. Radar enforcement equipment totaling $67,900: ten patrol-mounted radar units ($31,100); five motorcycle-mounted radar units($18,500); and five hand-held radar units ($17,200). Given its workscope and timeframe, this grant will have a net positive impact compared with the Preliminary Financial Plan of$133,200 in 2007-08; and $83,100 in 2008-09. Based on the grant term, there will be a final offset of $16,900 in 2009-10, resulting in a total savings of$233,200 over the next three City fiscal years. (Funding for the DUI checks and radar equipment totaling $80,300 are in addition to the workscope reflected in the Preliminary Financial Plan.) This change will be reflected in the final 2007-09 Financial Plan. - 3-