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Home My WebLink AboutREOCmemoPacketMar16 Memorandum March 12, 2015 TO: Revenue Enhancement Oversight Commission (REOC) FROM: James David, Principal Analyst SUBJECT: Preliminary 2015-17 Measure G Capital Expenditures A REOC Commissioner inquired about reviewing the preliminary list of Capital Improvement Projects (CIP) that is referenced in your March 16th Agenda Report for Item #2. Staff did not initially include this finer level of detail with the agenda materials because it is still being developed and changes daily. Furthermore, the list will be refined based on the REOC’s discussion and recommendations about other items on the agenda. Council will refine the CIP list at Strategic Budget Direction on April 21st as well. In an effort to maintain transparency in the process, staff is now presenting the preliminary CIP list to the REOC (Attachment 1). Please be aware that this is a snapshot in time and subject to change. The preliminary CIP list contains projects proposed for funding in fiscal years 2015-16 and 2016-17. An internal CIP subcommittee has priority-ranked the projects. Staff has also included information on each project’s nexus to Major City Goals as well as Measure G language. The amount of capital investment shown is based on sixty percent of forecasted Measure G revenue for 2015-17. Forecasted Measure G revenue for 2015-17 is $14,534,000 (Attachment 2, General Fund Forecast). Sixty percent of this value is $8,720,400. The total 2015-17 Measure G capital investment shown on the enclosed preliminary CIP list is $8,516,067. As noted earlier, the amount of Measure G investment in capital is subject to change if the REOC and Council decide that a different split between capital and operating is preferred. Lastly, the City anticipates a fund balance of $3,637,000 at the end of fiscal year 2014-15 (per mid-year budget). $2,197,000 of this balance relates to Measure Y/G ($1,620,000 is from the contingency reserve and $577,000 is savings from the prior year). The use of this fund balance is still being refined. A list of potential capital investments using the Measure Y/G balance is included for REOC review (Attachment 3). These projects are not included on the preliminary CIP list at this time. Please focus your attention on the agenda items presented for March 17th. The REOC may wish to discuss the preliminary CIP list at the end of the scheduled agenda. The REOC may also consider another meeting in mid-May when the Preliminary Financial Plan is drafted and the Measure G expenditure plan is closer to being finalized. Please contact James David, jdavid@slocity.org or 805.781.7151, for any questions or comments in advance of the March 16 REOC meeting. Preliminary 2015-17 Capital Improvement Project Recommendations Capital projects funded by one-time resources, fleet replacement or IT replacement funds not included 03/12/15 Major City Goal (MCG) = Open Space Preservation (OS); Housing (H); Multi-Modal Transportation (T) Other Important Objective (OIO) = Neighborhood Wellness (N); Laguna Lake Restoration (LL); Downtown (D); Fiscal Sustainability/Responsibility (F) CIP Description MCG OIO Measure G Funding General Fund General Fund Rank Bicycle Facility Improvement T Bike Lanes and Sidewalks General 100,000 100,000 35 Bike Bridge at Phillips Lane T Bike Lanes and Sidewalks General, TIF - 250,000 35 Bob Jones Trail Octagon Barn Connection T Bike Lanes and Sidewalks Grant, General 50,000 - 35 Downtown Renewal D Bike Lanes and Sidewalks General - 6,000 35 Pedestrian and Bicycle Pathway Maint T Bike Lanes and Sidewalks General 100,000 60,000 35 Replacement of lighted crosswalks on Marsh & Higuera D, T Bike Lanes and Sidewalks General - 43,500 35 Safe Route to School Improvements - Pacheco and Bishop Peak Elementary T Bike Lanes and Sidewalks General 45,000 - 35 Sidewalk Repairs and Tree Replacement N,D,T Bike Lanes and Sidewalks General 100,000 100,000 35 Sidewalk Ramp Construction T Bike Lanes and Sidewalks General, CDBG 45,000 33 Office Remodel & Fleet for Rental Inspection Program N Code Enforcement General 203,750 - 35 Broad St Bank Reinforcement Flood Protection General, Grant 40,000 - 35 Storm Drain System Repl Flood Protection General 578,000 595,600 35 Toro Street Bank Stabilization Flood Protection General 50,000 - 35 Street Reconstruction & Resurfacing T Neighborhood Street Paving General 1,431,617 1,775,600 35 Fleet Expansion - Ranger Services Program Pickup Truck OS Open Space Preservation Fleet 52,500 - 35 Open Space Acquisition OS Open Space Preservation General, Grant 250,000 250,000 35 Mission Plaza Railing Upgrade D Other Capital Improvement General 30,000 30,000 35 Neighborhood Traffic N,T Other Capital Improvement General 20,000 20,000 35 Olympic Pool Replastering Other Capital Improvement General 290,000 - 35 Park Facilities Major Maintenance Other Capital Improvement General 86,000 220,000 35 South & Parker Traffic Safety Proj T Other Capital Improvement General 30,000 - 35 Traffic Safety Improvement Projects T Other Capital Improvement General 25,000 25,000 35 Marsh Street Bridge Repl D,T Other Capital Improvement General, Grant, Sewer - 734,000 33 Restroom Replacement & Remodeling D Other Capital Improvement General 400,000 80,000 33 Road Stripes T Other Capital Improvement General 20,000 33 Traffic Operatins Improvement Proj T Other Capital Improvement General 30,000 33 2015-16 2016-17 Attachment 1 Preliminary 2015-17 Capital Improvement Project Recommendations Capital projects funded by one-time resources, fleet replacement or IT replacement funds not included 03/12/15 Major City Goal (MCG) = Open Space Preservation (OS); Housing (H); Multi-Modal Transportation (T) Other Important Objective (OIO) = Neighborhood Wellness (N); Laguna Lake Restoration (LL); Downtown (D); Fiscal Sustainability/Responsibility (F) CIP Description MCG OIO Measure G Funding General Fund General Fund Rank 2015-16 2016-17 Fire Dept EPCR (New IT Request)Public Safety General 53,800 25,700 35 Fire Station 2 Remodel of Dorms & Bathroom Public Safety General 160,000 - 35 FS 2 Ext Driveway Slab Replacement Public Safety General - 10,000 35 4,190,667 4,325,400 Facility Maintenance General 57,000 146,000 35 Fire Station 1 Carpet, Painting and Wiring Repl General 88,600 35 Police Scheduling System General 37,000 35 Public Art Fund - $ TBD General 30,000 30,000 35 Golf Course Pro Shop Building Assessment General 37,000 33 Palm Garage Building Assessment General, Parking 8,333 33 Tranportation Monitoring (Traffic Counts)T TIF, General 12,000 33 181,333 264,600 4,372,000 4,590,000 Total forecasted General Fund revenue recommended for CIP projects non-Measure G Subtotal Measure G Subtotal City of San Luis Obispo - General Fund Five Year Fiscal Forecast December 2014 $ in 000's Actual ActualActualBudgetProjected 2011-12 2012-132013-142014-152014-15 2015-162016-172017-182018-192019-20 Sales Tax 13,290 14,242 15,406 15,277 15,739 15,907 16,897 17,542 18,099 18,664 Measure Y/G Sales Tax 6,237 6,494 6,774 6,775 6,882 7,141 7,393 7,635 7,880 8,129 Sales Tax Prop 172 307 328 392 350 411 432 464 500 534 567 Property Taxes 8,367 9,177 8,960 8,934 9,263 9,801 10,183 10,600 11,046 11,520 Property Tax in Lieu of VLF 3,492 3,533 3,646 3,722 3,849 4,073 4,231 4,405 4,590 4,787 Transient Occupancy Tax 5,222 5,572 6,063 6,290 6,518 6,844 7,170 7,496 7,822 8,148 Utility Users Tax 4,584 4,916 5,345 5,500 5,506 5,720 5,949 6,187 6,434 6,692 Franchise Fees 2,462 2,552 2,637 2,540 2,676 2,716 2,757 2,798 2,840 2,883 Business Tax 1,838 2,055 2,143 2,185 2,197 2,251 2,308 2,365 2,425 2,485 Real Property Transfer Tax 144 256 288 180 180 184 187 191 195 199 Subtotal Taxes 45,94449,12651,65351,75253,22155,06957,54059,71961,86464,074 Gas Tax / TDA / Transfers In 1,408 1,375 1,640 1,489 1,489 1,489 1,489 1,489 1,489 1,489 Other Subventions & Grants 564 1,355 1,238 327 399 319 319 319 319 319 Development Review Fees 2,454 2,595 4,207 3,396 5,206 4,115 4,527 5,260 6,044 6,775 Recreation Fees 1,742 1,748 1,733 1,548 1,635 1,667 1,701 1,735 1,769 1,805 Other Service Charges 2,090 1,851 1,952 1,743 1,763 1,764 1,764 1,764 1,764 1,764 Other Revenues 893 903 604 373 496 496 496 496 496 496 Bond Proceeds 5,386 - - - - - - - - - Subtotal Non-Tax Revenues 14,5379,82811,3748,87510,9879,85010,29511,06311,88112,648 Total Revenues 60,48158,95363,02760,62764,20964,91967,83570,78173,74576,721 Operating Expenses (excl PERS)38,845 40,996 42,417 43,982 46,309 45,101 46,186 47,895 48,708 50,432 PERS Normal Costs 1 4,189 3,145 2,921 4,522 4,621 3,535 3,735 3,836 3,935 4,031 PERS Unfunded Liability 4,178 4,443 4,642 3,791 3,791 5,629 6,327 6,942 7,592 8,278 Development Svcs Allocation2 - - - - 1,358 1,154 1,460 2,007 2,595 3,143 Subtotal: Operating Expenses 47,21248,58349,98152,29556,07955,41957,70860,68062,83065,885 Bond Costs 5,779 Debt Service 2,437 2,773 3,551 5,577 5,382 3,000 2,994 2,994 2,892 2,280 Transfer to CDBG 54 45 52 75 75 126 126 126 126 126 Transfer to Insurance Benefit Fund - - - 280 280 1,124 - - - - CIP - Fleet Replacement 500 500 411 533 533 624 655 824 824 975 CIP - IT Replacement - 200 566 967 967 650 683 700 850 900 CIP - Major Facility Replacement - - 853 551 551 607 637 720 825 850 CIP - All Other 3,723 3,496 5,754 2,516 2,739 3,765 3,953 3,953 4,072 4,400 Subtotal: Operating Transfers 12,4927,01411,18710,49810,5279,8969,0489,3179,5899,531 Total Expenditures 59,70455,59761,16862,79366,60665,31566,75769,99772,41975,416 Revenues Over/(Under) Expenses 3 777 3,356 1,860 95 2,175 728 1,079 784 1,326 1,306 One Time Use of Reserve4 - - - (2,261) (4,572) (1,124) - - - - Fund Balance, Beginning of Year12,908 13,684 18,938 15,189 20,797 18,400 18,004 19,083 19,867 21,193 Funding Adjustment- 1,897 - - - - - - Ending Fund Balance13,68518,93820,79713,02318,40018,00419,08319,86721,19322,499 Reserve @ 20% Operating Costs9,161 10,070 10,458 10,813 11,216 11,384 11,542 12,136 12,566 13,177 Adj for Debt Svc Reserve (603) (332) (332) (332) (332) (332) (332) (332) (332) (332) Encumbrance & Designated Reserve 5 (2,279) (1,768) (6,272) (1,700) (2,444) (1,320) (1,320) (1,320) (1,320) (1,320) Reserve Over/(Under) Policy Level1,6426,7673,7351794,4094,9695,8906,0796,9757,670 Change In 20% Reserve Level 168 158 594 430 611 Undesignated and Available 6 4,409560921190896695 Notes 1 PERS costs estimated based on CalPERS valuation reports and broken out by normal cost vs unfunded liability to show the impact of PERS rate changes. 2 Relfecs 75% of development services revenues in excess of prior fiscal forecast levels 3 Projected revenues over expenses excluces one-time use of designated reserves shown in the line below 4 2014-15 use of reserve includes $2 million CJPIA, $196k Dev Svcs SOPC, $1.8M carryover, $468k Dev Svcs revenue appropriation. 2015-16 reflects CJPIA. 5 2013-14 reserve includes $2.1M CJPIA, $1.7M contingency reserve, $1.8M carryover, $468k Dev Svcs, $196k SOPC. 2014-15 and beyond reflects CJPIA. 6 Undesignated reflects balance available for appropriation. If allocated to operating this amount is to be reduced by 20% for reserve requirements.12/9/2014 Five Year Forecast 15-17 Financial Plan 19 Attachment 2 PROJECTION FACTORS2 Years5 Years10 Years15 Years2014-152015-162016-172017-182018-192019-20 DEMOGRAPHICS Population0.2%0.2%0.2%0.3% Housing Units0.3%0.5%0.6%0.7% Inflation1.6%2.4%2.5%2.5%2.5%2.5%2.5%2.5%2.5%2.5% KEY REVENUES Sales Tax (excluding Triple Flip Adj)8.0%5.4%3.5%4.0%2.2%3.8%3.5%3.3%3.2%3.1% Triple Flip Adjustment (322) Chinatown 95 190 190 190 Measure Y/G Sales Tax4.2%3.9%NANA1.6%3.8%3.5%3.3%3.2%3.1% Property Tax3.7%0.5%4.1%5.2%3.4%5.8%3.9%4.1%4.2%4.3% Transient Occupancy Tax7.8%5.4%4.6%4.0%7.5%5.0%4.8%4.5%4.3%4.2% Utility Users Tax8.2%4.4%4.2%4.2%3.0%3.9%4.0%4.0%4.0%4.0% Franchise Fees3.5%1.6%3.0%7.1%1.5%1.5%1.5%1.5%1.5%1.5% Business Tax8.3%2.6%3.8%4.9%2.5%2.5%2.5%2.5%2.5%2.5% Gas Tax / TDA / Transfers In7.5%15.2%6.7%5.1%-9.2%0.0%0.0%0.0%0.0%0.0% Development Review Fees 34%24%23.7%-21.0%10.0%16.2%14.9%12.1% Recreation Fees0%8%-5.7%2.0%2.0%2.0%2.0%2.0% EXPENDITURES Operating Costs (excluding PERS4.2%2.5%2.5%2.5%2.5% PERS (Estimated based on actuarial reports)-23.5%5.7%2.7%2.6%2.5% Estimated Staff savings 2.0%2.0%2.0%2.0%2.0% Estimated Non-Staff savings 2.0%2.0% Debt Service (Based on Existing Debt)-44.2%-0.2%0.0%-3.4%-21.2% CIP (including Fleet, IT, Major Facility, All Other)17.8%5.0%4.5%6.0%8.4% Forecast AssumptionsHistorical Trends (Annual Growth Rates) 20 Preliminary 2015-17 Capital Investments using One-Time Resources 03/12/15 Street Reconstruction and Resurfacing Fleet Replacement IT Replacement Bikes / Multimodal Infrastructure Fund Open Space Maintenance Laguna Lake Conservation Plan Implementation Monterey / Osos Traffic Signal Fire Dept 1 Parking Lot Wayfinding Signs Police Station Feasibility Projects NOTE: Of the $3,637,000 fund balance at the end of FY 14-15 (per mid-year budget), $2,197,000 relates to Measure Y/G ($1,620,000 is from the contingency reserve and $577,000 is savings from prior year). Attachment 3