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HomeMy WebLinkAbout06/03/2008, PH1 - ADOPTION OF 2008-09 BUDGET council MccbmD� June 3,2008 j agenda Repout �� i CITY OF SAN LUIS O B I S P O FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance& Information Technology Debbie Malicoat, Finance Manager SUBJECT: ADOPTION OF 2008-09 BUDGET CAO RECOMMENDATION Adopt a resolution approving the 2007-09 Financial Plan Supplement and 2008-09 Budget. DISCUSSION Consistent with the City's two year approach to the budgetary process, the 2008-09 Budget presented for formal Council adoption at this time has been prepared using the 2007-09 Financial Plan as its primary foundation. It also incorporates the analysis presented to Council as part of the 2007-08 mid-year review on February 19, 2008; the enterprise fund rate reviews held on May 20, 2008; and other budget changes affecting 2008-09 approved by the Council since the adoption of the 2007-09 Financial Plan such as the community development block grant program. A comprehensive analysis of the significant budget issues facing the City for 2008-09 along with recommended supplemental appropriations are included in the Introduction (under Budget Message and Budget Highlights)of the accompanying Preliminary 2008-09 Budget. ATTACHMENT Resolution approving the 2007-09 Financial Plan Supplement and adopting the 2008-09 Budget ENCLOSURE Preliminary 2007-09 Financial Plan Supplement and 2008-09 Budget G:\Finance\Budget Folders\Financial Plan Supplements\2008-09\Council Agenda Report,Budget Adoption RESOLUTION NO. (2008 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE 2007-09 FINANCIAL PLAN SUPPLEMENT AND ADOPTING THE 2008-09 BUDGET WHEREAS, the Council adopted the 2007-09 Financial Plan on June 19, 2007, which established comprehensive financial and policy guidelines for fiscal years 2007-08 and 2008-09; and WHEREAS, the 2007-09 Financial Plan included appropriations for fiscal year 2008-09; and WHEREAS, the Council has reviewed proposed changes to the 2007-09 Financial Plan to be effective for fiscal year 2008-09 after holding noticed public hearings; and WHEREAS, the City Administrative Officer has submitted the 2007-09 Financial Plan Supplement and Preliminary 2008-09 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 the 2007-09 Financial Plan Supplement and adopts the 2008-09 Budget. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted on June 3,2008. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: J nathan Lowell, City Attorney J , c o u n c i L C ity o�san tws osispo, aammistitation pj pp merit DATE: June 2, 2008 RED FILE RECEIVED TO: City Council MEETING AGENDA JUN 0 2 2008 DATE � 3/ca' ITEM #22L, FROM: Ken Hampian, CAO SLO CITY CLERK SUBJECT: EVC Request Attached is a request from the EVC received late on Friday asking that the Council increase EVC operational funding from the current level of$5,000 annually to $20,000 annually. Requests of this kind have typically been considered as a part of our two-year goal setting process, rather than as a mid-cycle adjustment. I suggest that we treat this request in this fashion. By doing so, the Council may also have a better idea as to the direction of the Chamber's update of their San Luis Obispo Economic Development Vision. As you know, the City will be more actively involved in the update of the vision, to include Council representation and Council action on the final document. By know more about the direction and priorities for our community's economic development efforts, we may better direct added funding and to support specific programs and goals (which could include an enhanced role for the EVC). LC COUNCIL 'CDD DIR CAO �°i FIN DIR CAO FIRE CHIEF ATTORNEY PW DIR CLERIVORIG POLICE CHF DEPT HEADS R€C DIR e« UTIL DIR 7-94BuA.dF HR DIR Z our tc C AO CADocuments and Settings\ecanolLocal Settings7emporary Internet Flies\OLMEVC Request.doc INC May 28, 2008 City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Attn: Ken Hamoian City Manager Andrew Carter City Council Member& EVC Board Member Re: Request for sponsorship increase Dear Mr. Hampian and Mr. Carter. On behalf of the Board of Directors and staff of the Economic Vitality Corporation, I wish to thank the City of San Luis Obispo for its continued support of the EVC. Please accept this request to increase the City's annual sponsorship to the EVC in the amount of$20,000 for the 2008-09 fiscal year. I would like to take this opportunity to provide a brief background and update on the EVC's recent accomplishments, its impact to the City, and provide input on the need for an increase in the City's sponsorship. EVC Background Celebrating fourteen years as a non-profit organization, the EVC helps to create a more Vital local economy by providing resources to create jobs and foster the startup, growth and retention of businesses. Mission Statement Stimulate the economic vitality of San Luis Obispo County;generate jobs, increase investment in the community; and promote the start-tip, growth and attraction ofbttsinesses. Since inception, examples of the EVC's accomplishments are as follows: • Assisted thousands of entrepreneurs and companies to start or expand business • Helped create or save several hundred jobs through two business loan programs • Provides workshops and seminars on key business topics • Leveraged over$6 million in business loans • Commissioned first-ever industry cluster studies to foster economic growth 1 of 6 C Economic Vitality Corporation .seeping SLv Lo., .bao:nee; . .�.. P.O. 5257. San Luis 00i500.C; slcy..� May 28,2008 The Local Economy The local economy is driven by a relatively small number of industry sectors including agriculture, tourism and government, and there is the need for growing other industry sectors to provide more head-of-household jobs. • The local unemployment rate is relatively low, but pay-scales are also low. • Head-of-household jobs, particularly in growth sectors, are relatively scarce and are a cause for under-employment. • High housing costs are also contributing to a job/housing imbalance. This imbalance causes pressure on businesses and communities, thus making it difficult to attract and retain employees, and also contributes to a loss of young workers and families. As community leaders look to the future,there is a need to further develop and implement strategies to plan our economy and foster promising industry sectors. Fostering promising industry sectors can compliment existing industries and create more job opportunities. We believe that a healthy community requires a healthy business community. Thoughtful economic development will have a positive impact to the City of San Luis Obispo and its citizens. Compelling Need The EVC is thankful that the City of San Luis Obispo has been a supporter for many years. As you know, the City pays $5,000 per year in semi=annual installments. The amounts paid to the EVC several years ago was several times what they are today (see below), although there is a greater need for economic development resources in collaboration with the City's EconomicDevelopment Department. The EVC is more effective than ever, and its services and resources come at a time when more head-of- household jobs are needed, and more private businesses are also needed. The relationship between the EVC and the City is better than ever, and new opportunities for collaboration continue to surface, for example, related to the airport annexation. The excellent working relationship with the City's Economic Development Manager, Claire Clark, is far from reaching its full potential and we look forward to working even closer in the future. Because the other cities are paying equal to or more than the City of San Luis Obispo, this is causing an imbalance in the use of EVC resources because a large percentage of our resources and time is spent in, and for the benefit of, the City of San Luis Obispo. Contributions by other cities The funding from the other cities is currently as follows: Paso Robles $10,000 Atascadero 10,000 Grover Beach 7,500 Pismo Beach 7,500 Arroyo Grande 5,000 Morro Bay 5,000 2of6 INC May 28,2008 Previous City of SLO contributions Current and past contributions from the City of SLO have been as follows. The contributions have decreased in recent years, although the need for EVC services has increased. I understand that one of the causes for the decreases related to pre-Measure Y impacts. 2008-09 $5,000(current contract) 2007-08 S5,000 2006-07 $5,000 2005-06 55,000 2004-05 $10,000 2003-04 $10,000 2001-02 $15,000 2000-01 515,000 1999-00 $15,000 1998-99 S12,400 Recent Accomplishments Examples of recent accomplishments for the City of San Luis Obispo and its citizens are as follows: 1. Business Counseling/Attraction The EVC spends a large percentage of its staff time and resources for the benefit of the business community in the City of San Luis Obispo. This includes counseling hundreds of businesses and entrepreneurs per year, and providing access capital for companies in the City that range in size and industry. Examples of such companies include AeroMech Engineering, BiScotti, Bali Isle, and many more. One of the world's largest aerospace companies will be announcing the opening of an engineering office with high-paying engineering jobs thanks in part to the effort of the EVC. This has taken many months, but a facility is likely to open in the City of San Luis Obispo and I look forward to announcing this positive development soon. 2. Tourism Industry Studv Thanks to the City s support, the EVC commissioned a comprehensive analysis of the county's tourism industry which is vital to the City's economy. The report completion is anticipated in late summer/early fall of 2008. This public/private partnership has taken the better part of one year of the EVC's time to commission. 3. Venture Capital Seminar& Angel Investor Network The EVC will continue to expand this network and include a means for San Luis Obispo businesses and entrepreneurs to access this resource. On March 18, the EVC held its second annual venture capital seminar in the City which was a great success by all measures. See web site for more. This event has placed San Luis Obispo on the map for ventures capitalists. • The only event of its kind in county grew event by over 100% • Featured VC key note speaker • Provided training to companies beforehand • Results: Companies receive funding as a result of the event 3of6 INC May 28, 2008 3. Emergency Preparedness Seminar This first—ever seminar brought together experts from throughout the state to teach local businesses and.govemment organizations the benefits of preparing for emergencies. See the EVC's web site for more. • 220 attendees, 16 Company Booths • Received the Governor's Office endorsement • The City's Fire Chief played a vital roll in this event • Preparedness information and plans available on EVC web site • Results: Helped many organizations become prepared The following organizations are partners and affiliates of the EVC: Affiliations • Cal Poly College of Engineering Dean's Advisory Council • - Cal Poly Orfalea College of Business, Community Advisory Council • California Space Authority • Central Coast Marketing Team • Cuesta College Business Advisory Committee . • SOFTEC (Central Coast Software & Technology Association) • UCSB Economic Forecast Project, SLO County Board • Workforce Investment Board Partners • Cuesta College Small Business Development Center • Mission Community Services • Chambers of Commerce & SLOCHX—Chamber Directors of SLO County • Private Industry Council • SCORE • Santa Maria Chamber of Commerce • Santa Maria Valley Economic Development Commission Sponsorship Update Both public and private sponsorship amounts have increased significantly over the last three years, as have the overall number of sponsors, now over 100. The City's support is more important than ever as the economy has softened and economic development is playing a very tangible role. I am pleased to report that we have now achieved our goals of having at least half of our sponsorship dollars coming from the business community. Attached is a sampling of EVC success stories and a recap of services. Please do not hesitate to contact me for questions or comments. Thank you for your consideration of this proposal. Since ly, Michael E. Manchak President & CEO 4of6 May 28, 2008 cc: Dave Romero, Mayor Paul Brown, Council Member Allen Settle, Council Member Christine Mullholland, Council Member Shelly Stanwyck, Assistant City Manager Claire Clark, Economic Development Manager 5of6 { i EVC Resources Recap Currently Services Provided 1 Business Connections&Counseling Yes 2 Business Expansion, Retention Yes i£Attraction 3 Business Loan Programs (2) Yes 4 Business Retention Surveys Yes 5 Business Seminars &Workshops Yes 6 Site Selection Services Yes 7 Trailing Spouse Jobs Network Yes 8 Venture Capital&Angel Investor Network Yes 9 Business Incubator Study Finalizing funding to launch in 2008 10 Tourism Industry Study In-progress, pending fall completion Note:The above list is not in any particular order of priority or emphasis 6of6 EVC ECON0611C VITALITY CORP. Success Stories Download testimonials from 2007 Martha Van Inwegen, President, Life Elements www.LifeElements.com, Atascadero "...I set forth to learn how to create the products I wanted, get them manufactured and get them to market. But there was much more to it than that. There was establishing the business,finding the capital, learning how to importlexport, marketing, public speaking, PR...and more!That's when I contacted the EVC." More Jonas Bailey, Owner, Infinity Tile& Design .z ,k e� Infinity H e www.infinitvtiledesign.com, San Luis Obispo L,. :[A ,. "I decided to take an international trade course with the EVC, which helped immensely in regards to best logistic practices. Furthermore, [the EVC]set me up with a mentor, Ross Starkenburg,who would always take the time to offer me his advice and credible business opinion at any time of the day. However, it was clear that my student loan was going to run out quick. It was then that I was introduced to Dave Mooklar from the EVC who helped me secure a loan with Mission Community Bank and taught me the importance of cashfiow." (More) Victoria Lowrie MT-BC, NMT Fellow, Owner Harmony In Health., Oceano "The EVC was able to give me a micro-loan to purchase equipment that allows me to give better therapy to my , clients. This loan has meant to me: increased clientele b 50 percent,opening of a second office in Atascadero Y P P 9 to serve North County, and the ability to hire my first HARMONY IN H L•' A L T H employee in 2008. Thank you EVC for allowing me to .' " " follow my dream and make a difference in my community." Jim Aaron Central Coast Custom Water Co. , SL I Cenr al Coaster CustomWater Company f "Thank you so much for helping the success of Central Coast Custom Water Co., an up and coming start-up bom from the heart of the EVC program. This is a testament that the EVC programs are working and bearing fruit. The EVC has helped me create a successful transition from unemployment to an exciting new business that benefits our entire community." Linda May Ace Hardware, Nipomo "After 20 successful years in business, our store went through two years , of simultaneous events which drained cash flow and depleted inventory. The EVC granted us a loan which gave us a much needed boost in inventory and helped to get us back on our feet. The EVC representatives were friendly, knowledgeable and easy to work with.The EVC had faith in us when others did not.Thanks EVC." Kylee Jacobson, Owner ' Love to Learn, San Luis Obispo r; • I T 'fo ASM 'l "As a new business owner, I was very thankful for Loge the EVC's help. I would not hesitate to recommend to �PeSCoo� . � /, other entrepreneurs EVC resources. My overall t� 1 experience with the EVC was extremely positive and helped me realize my dream of owning my own business and in turn help the community." Leticia Perez Miller Tilde Translations, San Luis Obispo 0 Tilde Translations leticia(o7ti Idetranslation s.com "A leap of faith, a sound business plan and the vital financial backing from the EVC has created the opportunity to realize a long-time dream. Not only has EVC furnished me the essential financial support but also with promotional exposure: spotlighting my company in the EVC e- newsletter and on a radio interview which expanded my clientele. Thank you!"' Susan Price, Owner Price Communications Arroyo Grande www.pricecorrimunications.biz "I would like to thank the EVC for supporting my marketing consulting business, Price Communications. Dave Mooklar was so supportive and helpful in getting me a business loan. It was just the kick start I needed. My business is going even better than I had hoped thanks to the backing and encouragement of the EVC." Cindy Alvarez, Owner Nipomo Furniture , Nipomo "Without the EVC 1 would not own my own business!" I was the general manager of The Furniture Broker in Nipomo when the owner offered me the opportunity to buy the business. The EVC helped me obtain a loan so that I am now the owner of Nipomo Furniture Market." Examples of previous EVC clients that have started or expanded business through the EVC: Affordable Mobile Auto Love to Learn Best Clean McCarthy Steel, SLO Big Bubba's Bad BBQ, Paso Robles&Atascadero Mediums Apparel/Graphics, SLO Cayucos Beauty, Cayucos Nipomo Ace Hardware, Nipomo C&S Industrial Coatings, Grover Beach Nipomo Furniture Market, Nipomo Central Coast Custom Water Co., SLO Oceano Market, Oceano Central Weddings Omni Design Group, SLO Central Coast Yoga, Grover Beach Pala Pala Design, Atascadero Cuesta Equipment, SLO& Paso Robles Pemberton Dogwash Dogfathers, SLO&Atascadero Reign Everlite RipSgueak, SLO Exotscapes Sand Cab, Pismo Beach Elemental Herbs, Morro Bay SLO Baked Goods, SLO Finn PlumbingGrossini's Auto Body, Grover Beach San Luis Purified Water, SLO GROW, the nursery at Moonstone Gardens, Cambria Shopatron. Harmony In Health, Oceano Sobrante Wine Systems, Paso Robles Here Comes the Groom, Los Osos This Is It! Hilton Upholstry, SLO Tortillera, San Miguel Jenkins Framing Tilde Translations, SLO Jet Pest Control,Atascadero Truck Top&Accessory Shop, Grover Beach Kaleidoscope Kids,Atascadero Trumpet Vine Catering,Atascadero Le Bas International, SLO Upper Crust Trattoria, SLO LeDome Champagne Truffles Wallace Home LePell Tile& Stone Willis Welding Life Elements, Atascadero Wine Country Cleaning, Paso Robles Life Transformations, SLO and many more...