HomeMy WebLinkAbout07/00/1989, 1 - ADOPTION OF THE 1989-91 FINANCIAL PLAN AND 1989-90 BUDGET MEETING DATE:
City of San lues OBISpo July 24, 1989
ITEM NUMBER:
COUNCIL AGENDA REPORT
FROM: William C. Statler, Director of FinanceW24P�
SUBJECT: ADOPTION OF THE 1989-91 FINANCIAL PLAN AND 1989-90 BUDGET
CAO RECOMMENDATION
Adopt the attached resolution approving the 1989-91 Financial Plan and appropriating
funds for the 1989-90 Fiscal Year..
OVERVIEW
Since January 9, 1989, the proposed 1989-91 Financial Plan and 1989-90 Budget has been
reviewed with the City Council at fourteen study sessions and public hearings. Based on
the comments from the Council, public, and staff during these meetings, the proposed
1989-91 Financial Plan and the 1989-90 Budget is being submitted for City Council
approval at this time. The proposed 1989-91 Financial Plan and 1989-90 Budget has been
revised to reflect City Council direction and the cost of the Council Work Program.
To assist in the Council's review of the revised Financial Plan, the enclosed Preliminary
Budget Supplement has been prepared which provides the Council Work Program in its final
form, Budget Graphics and Summaries, and supplemental financial summaries for the
operating programs and capital improvement plan. This supplement can be used in
conjunction with the other major budget documents presented to the Council during the
financial plan process:
• Draft Council Work Program
• Preliminary 1989-91 Financial Plan and 1989-90 Budget
• CAO Recommended Significant Expenditure and Staffing Changes and Capital
Improvement Plan Projects
• 1989-91 Financial Plan Preparation Guidelines and
Supporting Documentation (Work Papers)
BUDGET HIGHLIGHTS
In considering adoption of the proposed 1989-91 Financial Plan, it is appropriate to ask
ourselves: what are we providing to our citizens through this budget? In answering this
question, the proposed financial plan represents a balance between planning for the
future and delivering tangible services to our citizens today. As shaped during the
Council Work Program process, the proposed budget includes financial support for a number
of future planning efforts, most notably the General Plan Update. At the same time, the
financial plan provides for the delivery of an excellent program of municipal services,
which reflects the emphasis of the Council Work Program: downtown planning;
neighborhood preservation; environmental concerns; and recreational opportunities.
The financial plan provides augmented funding in meeting our basic infrastructure
maintenance needs (increased chipsealing, overlay, and tree trimming) while also
addressing "quality of life" issues such as alternative transportation needs (pilot
downtown shuttle program and bikeway improvements), hazardous waste storage and disposal,
downtown beautification, open space and parkland acquisition, and playground
improvements. /� /
city of San Luis OBIspo
GiS COUNCIL AGENDA REPORT
COUNCIL WORK PROGRAM
The 1989-91 Financial Plan reflects the full integration of the Council Work Program into
the budgetary process. Based on Council discussions at their June 27, 1989 meeting, the
impact of the work program on the Financial Plan and Budget is summarized in Attachments
A and B of this staff report. As reflected in the work program objectives, time frames
rather than dates have generally been provided for the accomplishment of key milestones.
Using the prioritization of objectives developed at the June 27, 1989 meeting, a defined
time schedule will be prepared for each objective for tracking purposes. Further, each
objective will be incorporated into the Operating Program and Capital Improvement Plan
sections of the final Financial Plan document, and the Council Work Program will be
included in its entirety. As an integral component of the financial plan, the status of
each work program objective will be included in the Quarterly Goals and Objectives
Reporting System.
FINANCIAL CONDITION
With the notable exception of the City's wastewater operation, the proposed 1989-91
Financial Plan can be implemented without requiring any rate or tax increases during the
two year financial plan period. However, as noted in the Budget Message included in the
Preliminary 1989-91 Financial Plan, significant challenges will face the City over the
next ten years in achieving its capital improvement goals while maintaining operating
program levels. Fortunately, the City's committment to long-term financial planning has
provided us with the time and opportunity to address and resolve any potential financial
problems before, rather than after, they occur.
REVIEW PROCESS
From January 1989 to the present, the Council has met at fourteen study sessions and
public hearings to discuss and consider the 1989-91 Financial Plan. During this
extensive review process, the Council has considered:
• Key budget policies to be used in the preparation and execution of the financial
plan.
• Goals and priorities of the City as identified in the Council Work Program,
Management Team Objectives, and operating program objectives.
• Significant operating program and staffing changes
• Capital improvement plan projects
• Current and long-term financial condition
All aspects of the Financial Plan have been subject to revisions throughout the budgetary
process. Significant operating program changes and capital improvement plan (CIP)
projects were initially presented to Council at their May 25, 1989 meeting. In response
to Council discussion and public input at following meetings, the CIP was significantly
revised in order to:
• Bring expenditures over the next two years into better alignment with current
resources
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MiGn COUNCIL AGENDA REPORT
• Respond to Council comments on specific projects during their review of the CIP
• Recognize more realistic time frames
The changes from this review were incorporated into the Preliminary 1989-91 Financial
Plan presented to the Council at their June 26, 1989 meeting. The accompanying
Preliminary Budget Supplement reflects the most recent refinements to the 1989-91
Financial Plan by fully incorporating the Council Work Program.
i
SUMMARY
It is recommended that the City Council adopt the attached resolution approving the
1989-91 Financial Plan and appropriating funds for the 1989-90 Fiscal Year.
Upon adoption of this resolution, the final 1989-91 Financial Plan and Approved 1989-90
Budget document will be prepared incorporating any changes from the Preliminary Financial
Plan and accompanying Supplement. As noted previously, the Council Work Program will be
incorporated into the final document in its entirety, and the Operating Programs and
Capital Improvement Plan sections modified as appropriate.
APPROVALS:
' C
City Adm1pistrative Officer
City Attorney
I
Staff Report/CAADOPTFPSUD
ATTACHMENT A
COUNCIL WORK PROGRAM COST SUMMARY
-- --
�.; 1989-90 1990-91
/ --------------------------- ---------------------------
OPERATING CAPITAL OPERATING CAPITAL
------------------------------------------------------------------------------------------------------------
A. DOWNTOWN PLANNING
1 Concept Physical Plan for Downtown 30,000
2 Purchase/Reuse the Fremont Theater 1,450,000
3 Sidewalk Reconstruction 200,000 200,000
4 Downtown Beautification
a. Construction 150,000 150,000
b. Reduce Regulatory Impediments
5 Noise Amplification
6 Downtown Shuttle 90,000
B. NEIGHBORHOOD PRESERVATION
1 Greek Row 30,000
2 Enhanced Historical Preservation 100,000 100,000
3 Neighborhood Traffic Management 4,000 70,000 100,000
4 Rental Residential Regulations 20,000
5 Private Property Maintenance 20,000
6 Density Calculations
7 Office Conversions 5,000
C. ENVIRONMENTAL CONCERNS
1 Enhanced Coordination 5,000 50,000
2 Bikeway Improvements 200,000 * 200,000 '
r" 3 Bus Stop Improvements 5,300
_ 4 Vehicle Emmissions Control
5 Build-out Projections
6 Freeway Signing 50,000
7 Hazardous Waste Inventory 35,000 25,000
8 Art-in-Public Places 53,500 5,000
9 firefighter Monument 80,000
10 Recycling Enhancements 25,000 25,000 100,000 *
D. RECREATIONAL OPPORTUNITIES
1 Playground Improvements 107,000 * 63,000 *
2 Senior/Community Center 50,000 *
3 Open Space/Parkland Acquisition 300,000 * 50,000 ' 300,000 *
4 Laguna Lake Master Plan 50,000
E. OTHER
1 PC and ARC Compensation Review
2 Use of Water Utility Users Tax
3 Low and Moderate Intone Housing
4 Council/Community Fund Raising
--------------------------------------------------------------
TOTAL 382,800 0 2,707,000 0 0 295,000 0 1,113,000
--------------------------------------------------------------
LESS COSTS INCLUDED IN THE
PRELIMINARY BUDGET (5,300) (2,107,000) (50,000) (663,000)
TOTAL CHANGE $377,500 $O $600,000 $O $O 4245,000 $O 8450,000
-----------------------------------------------------------
* Included in the Preliminary Financial Plan /revised Capital Improvement Plan
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RESOLUTION NO. (1989 Series)
A RESOLUTION OF THE COUNCIL OF THE
CITY OF SAN LUIS OBISPO
APPROVING THE 1989-91 FINANCIAL PLAN
AND APPROPRIATING FUNDS FOR
THE 1.989-90 FISCAL YEAR
WHEREAS, the City Administrative Officer recommends a comprehensive Financial Plan
for the 1989-91 Fiscal Years in accordance with accepted budget policies and programs
established by the Council; and
WHEREAS, the Financial Plan is based upon public comment and direction of the
Council after scheduled budget hearings held between January 9 and July 24, 1989;
WHEREAS, the Council reviewed the City's Annual Work Program as an integral
component of the Financial Plan preparation process.
NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo that:
i
Section 1. The Financial Plan for Fiscal Years 1989-91 is hereby approved.
Section 2. The Operating, Debt Service, and Capital Outlay Budget for the Fiscal
Year beginning July 1, 1989 and ending June 30, 1990 is hereby appropriated as follows:
Ooeratin? Debt Service Capital
Public Safety $ 8,202,300 $ 0 $ 3,299,400
Public Utilities 4,578,200 677,400 .32,585,000
Transportation 2,453,300 1,400,000 2,231,600
Leisure, Cultural, and Social Services 3,266,700 67,000 1,058,000
Community Development 2,909,600 0 330,000
General Government 4,150,000 34,400 415.000
TOTAL $25,560,100 $2,178,800 $39,919,000
L�
/ 1
On motion of seconded by and on
the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of
1989.
Mayor Ron Dunin
ATTEST:
City Clerk Pam Voges
A OVED:
City inistrative ficer
City torn
hector of Finance