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06-09-2015 B1 Preliminary 2015-17 Financial Plan
City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number -Xne 9 & , 2015 FROM: Katie Lichtig, City Manager Prepared By: Wayne Padilla, Director of Finance & Information Technology Jason Stilwell, Interim Director of Information Technology & Financial Planning SUBJECT: PRELIMINARY 2015-17 FINANCIAL PLAN RECOMMENDATION Review and consider the Preliminary 2015-17 Financial Plan at the budget workshops and public hearings scheduled for June 9, 11, and 16, 2015, and consider adoption of the budget at the June 23, 2015 City Council meeting. REPORT-IN-BRIEF The Preliminary Financial Plan identifies and funds vital services important to the community, enables the implementation of the three Major City Goals and four Other Important Objectives outlined by Council, reinvests in infrastructure and deferred maintenance, and provides City staff with the tools and equipment to deliver services in the most effective way. The Preliminary Financial Plan reflects the priorities of the Council, residents and the other members of the community. Importantly, the proposed plan represents a balanced approach to the provision of essential services with the resources available now and in the future. All of this affirms the City’s on-going commitment to delivering a high level of municipal services to our community in a fiscally prudent manner. The 2015-17 Financial Plan: • Ensures the policy of maintaining an appropriate reserve or working capital amount in the General and Enterprise Funds; • Uses fund balance above the required minimums for one-time, not ongoing, purposes; • Invests in the future by funding maintenance and improvements to City essential infrastructure, fleet, existing facilities, and information technology; and • Honors and implements Measure G priorities, the ½-cent local sales tax approved by voters in 2014. Overall, the Significant Operating Program Changes (SOPCs) proposed to accomplish Major City Goals and other service delivery objectives total approximately $3.85 million in 2015-16 and $5.0 million in 2016-17 for all funds. For the General Fund the total is $2.48 million in 2015-16 and $3.68 million in 2016-17. These include service enhancements such as the new rental housing inspection program, increased staffing to maintain service levels and meet workload demands as a result of robust development review applications, new Ranger Services staff to support open space maintenance and patrol, increased premiums for general liability and workers’ compensation insurance, and staffing in Public Utilities to facilitate automation and the departmental reorganization. B1 B1 - 1 Preliminary 2015-17 Financial Plan Page 2 An important part of meeting the City’s obligations to the community for maintaining and/or expanding levels of service involves staffing enhancements which add 23.2 full time equivalent positions during the 2015-17 Financial Plan. The majority of the proposed staffing enhancements are needed to meet the growing demand for service. Moreover 83% of these positions are funded directly by development services or program fees collected or by City enterprise funds that are supported through fees for service. This total is also offset by a reduction of temporary FTE (the Transportation Engineer, for example), as these positions have been serving the City for several years in a temporary capacity and the need for the service has been demonstrated as long term. In every case, the proposal has been evaluated for consistency with the City’s Fiscal Responsibility Philosophy. Proposed Capital Improvement Plan (CIP) expenditures total $22.3 million in 2015-16 and $104.7 million in 2016-17 for all funds. Specifically, the CIP includes funding for the Water Resource Recovery Facility Upgrade project, new bicycle facility improvements, public safety vehicle replacements, neighborhood traffic improvements, and open space acquisition, among many other projects. Other financial highlights include: • The City’s top three General Fund revenue sources, sales tax, property tax and transient occupancy tax (TOT), are all projected to increase during the 2015-17 Financial Plan period. • The General Fund budget includes an appropriation of $750,000 to prepay a portion of the pension liability and $250,000 as a prepayment to the Other Post Employment Benefit (OPEB) liability. • The General Fund budget also reflects additional funding in the following amounts for CIP compared to the previous estimates for 2015-16: $275,000 for deferred road maintenance; $450,000 for the City’s fleet replacement; $450,000 for information technology equipment replacement. • Consistent with the multi-year rate setting strategy previously approved by the Council to improve the City’s water distribution and treatment systems as well as fund participation in the Nacimiento water project, the Council will consider an increase to only the base (or minimum) charge portion of the rate. The base fee is proposed to increase from $5.28 to $7.63 in July 2015 and increase from $7.63 to $9.98 in July 2016. The volume charges will not increase. Additionally, a drought surcharge is proposed to offset the additional loss in revenue associated with the Governor’s Executive Order mandating statewide water use reductions. Overall the projected revenues from these rate changes are less than prior projections for 2015-17. • The Sewer Fund also uses a multi-year rate setting strategy. In order to continue supporting an adequate capital improvement plan and meet high wastewater treatment standards and mandates, the Council will consider rate increases of 4.6% in July 2015 and 3% in July 2016. The 2015-16 increase is slightly higher than projected to offset reduced wastewater generation due to indoor water conservation. The increase for 2016- 17 is on target with prior projections. • Parking fine and fee increases are proposed in the 2015-17 Financial Plan in accordance with the established expectation that rates would be reviewed and adjusted every three years. Parking rates and fines and forfeiture adjustments will be necessary in FY 2015- B1 - 2 Preliminary 2015-17 Financial Plan Page 3 16 and again in FY 2020-21 to fund anticipated expenses, capital projects, and debt service obligations. • Bus service fare rate increases are currently projected for 2015-17. Revenues from Transit Development Act and State Transportation Act sources are projected to decrease in 2015-16 based on estimates from San Luis Obispo County. The Transit Fund has a modest working capital reserve and unspent revenue from prior years due to the one-time only increases in the Local Transit Fund that will help address this funding reduction. The update to the Short Range Transit Plan (March 2016) will make final recommendations for fare modifications and service changes for the 2015-17 period. There are changes included in the Preliminary Financial Plan based on the guidance of City Council from the April 21 Strategic Budget Direction Hearing. They include modifications to the Bicycle Transportation Plan Implementation project, a contribution for the Octagon Barn land conservation program (Land Conservancy proposal attached), funding to address future high priority organizational issues as proposed by the City Manager and considered by City Council, and funding for ongoing support costs related to the City Clerk’s Laserfiche Document Management project. In addition, Cost Allocation Plan and Cost of Service Fee numbers have been updated and included in the Financial Plan. The hearing schedule has been published in the Tribune, and the agenda includes: • June 9, 2015, 5:00 PM: Key Budget Issues, Major City Goal Work Programs and General Fund Operating Programs • June 11, 2015, 4:00 PM: Capital Improvement Plan • June 16, 2015, 6:00 PM: Enterprise Fund Reviews and Water and Sewer Fund Rate Reviews • June 23, 2015, 5:00 PM: Budget Adoption • June 30, 2015, 5:00 PM: Budget Adoption continued if needed Each of these areas is covered in the body of this report. DISCUSSION Financial Plan Introduction and Summary Enclosed for City Council review and consideration is the City of San Luis Obispo Preliminary 2015-17 Financial Plan, and 2015-16 budget. The Preliminary Financial Plan identifies the funding and work programs needed to provide municipal services to City residents, and achieve the Council’s Major City Goals. This Preliminary Financial Plan represents continued progress on the path to financial sustainability, allows the City to maintain its assets and infrastructure, and enables important investments in the future of the City. Financial Highlights As shown in the following table, total proposed appropriations for 2015-16 are $122.7 million. B1 - 3 Preliminary 2015-17 Financial Plan Page 4 Governmental Funds Enterprise and Other Funds Total Operating Programs 60,262,56032,578,37592,840,935 CIP 10,467,50611,812,76122,280,267 Debt Service 3,014,6744,600,8517,615,525 Total $73,744,740$48,991,987$122,736,727 Operating revenues are equal to or greater than operating expenditures, including debt service, across all City funds. The City’s top three General Fund revenue sources (sales tax, property tax and transient occupancy tax), are all projected to increase during the 2015-17 Financial Plan period. The City operates enterprise funds for Water, Sewer, Transit, and Parking operations. These four enterprise funds comprise 38% of the City’s overall budget. The two largest are the Water and the Sewer Fund, which are 17% and 15% respectively. The enterprise funds are recovering from the impacts of the economic downturn with increased funding for capital improvement projects and are proactively addressing the fiscal impacts the drought has and will have on water sales and rates. An important part of meeting the City’s obligations to the community for maintaining and/or expanding levels of service involves staffing enhancements. The majority of the proposed staffing enhancements are to meet the growing demand for service and are funded directly by development services fees collected or to support the cost of processing applications for entitlements and construction permits, or by City enterprise funds that are supported through fees for service. Other positions are needed to implement the City Council’s Major City Goals, such as the new Open Space Maintenance Worker. A new Capital Improvement Plan Engineer is proposed and funded through the San Luis Obispo Essential Services Measure (Measure G); the position will be supporting design and construction of capital projects funded through the local sales tax and gives the City the capacity to manage the projects to be funded though Measure G. A Communications Technician is also proposed to ensure that staffing of the City’s Emergency Communications Center meets the demands of the community for emergency response support. In total, 21.7 new full-time equivalent (FTE) staff positions are proposed in 2015-16, and 23.2 FTE (an additional 1.5) in 2016-17. This total is also offset by a reduction of temporary FTE as these positions (the Transportation Engineer, for example) have been serving B1 - 4 Preliminary 2015-17 Financial Plan Page 5 the City for several years in a temporary capacity and the need for the service has been demonstrated as long term. In total 13.2 FTE are net new and 10.0 are converted from temporary or contract to regular. In every case, the proposal has been evaluated for consistency with the City’s Fiscal Responsibility Philosophy. Changes to Financial Plan since April 21 Strategic Budget Direction Meeting There are changes included in the Preliminary Financial Plan based on the guidance of City Council from the April 21 Strategic Budget Direction Hearing and updates since the Hearing. They include: • The Bicycle Transportation Plan Implementation portion of the Capital Improvement Plan has been revised to prioritize the Broad Street Bicycle Boulevard within the original $400,000 amount of the project; • Resources to provide a $50,000 contribution to the Land Conservancy of San Luis Obispo County for the Octagon Barn restoration project has been identified after spending for two CIP projects (Open Space Acquisition and Bicycle Transportation Plan) were reprioritized with no net change in project dollar amounts. o A copy of the Land Conservancy’s request is provided as an attachment to this report. o The Land Conservancy was also encouraged to reach out to the City’s Tourism Business Improvement District Board regarding potential promotional or event sponsorship opportunities; • Funding in the amount of $166,000 was added to the Ventures and Contingency designation for both 2015-16 and 2016-17 to address future high priority organizational issues as proposed by the City Manager and approved by City Council; • A Significant Operating Program Change was added to fund ongoing support costs of $14,200 annually related to the City Clerk’s Laserfiche Document Management project. The project was approved as part of the 2013-15 Financial Plan to enable automation and easy retrieval and management of City records; • Updated Cost Allocation Plan and Cost of Service Fee numbers have been updated and included in the Financial Plan. The City Council will see an agenda item seeking approval of these items on June 23, 2015. Fund Reviews On June 16, 2015, the City Council will consider the proposed revenues and expenditures, and the financial condition of the City’s four enterprise funds, water, sewer, parking and transit. In addition to the fund reviews, the Council will consider approving the release of certain previously approved Capital Improvement Projects and return these appropriations to working capital. The Council will also consider adopting a resolution increasing the water base fee and adding a drought surcharge associated with both the water base fee and volumetric rates, a resolution increasing the wastewater service charge by 4.6 percent effective July 1, 2015 and three percent effective July 1, 2016 provided there is no majority protest against such increases, a resolution approving modifications to parking rates in the parking structures effective August 1, 2015, and an ordinance approving an increase in parking meter rates to $1.50 at all credit card capable meters relocated from surface parking lots 2, 3, and 11. B1 - 5 Preliminary 2015-17 Financial Plan Page 6 After the Preliminary Budget went to print, staff learned that the Water Fund requires additional debt proceeds to finance a portion of the 2016-17 Reservoir #2 project in order to maintain adequate cash reserves in 2018-20. If the City Council approves the assumptions shown within this Fund Review, staff will prepare an amendment to the Preliminary Financial Plan that incorporates both the debt proceeds and the related debt service costs. Policy Changes Reflected in Financial Plan Policy changes proposed in the Preliminary 2015-17 Financial Plan include the following: 1) Changes to the goal status reports schedule, 2) Infrastructure investment policy, 3) Minimum fund and working capital balances policy, and 4) Fleet and information technology replacement funds policy. It should be noted that while the proposed policy language specifies that the Information Technology Fund will establish and maintain a specified contingency balance (which was based on a cost estimate to replace critical equipment that might be lost in a catastrophic event), staff has found that equipment that is currently being replaced has a remaining useful life that makes it suitable to be retained as replacement items stored at the Emergency Communications Center, thus eliminating the need for this reserve. In addition, a new Local Revenue Measure Sub-Fund has been created as part of this Financial Plan. This fund, which is a sub-fund to the General Fund, will account for Measure G revenue and its allocation to services and capital improvement projects. Format of the Preliminary Financial Plan The 2015-17 Financial Plan consists of two documents, the Preliminary Financial Plan and the Capital Improvement Plan. 1. Preliminary Financial Plan This includes: Section A. City Manager’s Budget Message, Financial Highlights, Measure G Funding Summary, and Process Overview Section B. About the City, Organizational Chart, Mission Statement, Organizational Values Section C. Major City Goals, Other Important Council Objectives, Status of Past Major City Goals Section D. Revenue Summary, Expenditure Summary, Departmental Summary Section E. Staffing Information and Operating Program Narratives Section F. Capital Improvement Plan (CIP) Summary Section G. Debt Service Requirements Section H. Budget Reference Materials including budget and fiscal policies, changes in financial position, pension obligation cost trends, retiree health care obligations and appropriations limit history B1 - 6 Preliminary 2015-17 Financial Plan Page 7 2. Capital Improvement Plan This document provides supporting documentation and descriptions for each of the CIP projects proposed in the Preliminary Financial Plan. An introduction is included that further describes its purpose, organization and content. Although the Council is only making funding decisions about the first two years of the CIP, 2015-17, the 5-Year CIP is aligned with the financial resources identified in the General Fund 5-Year Forecast and enterprise fund reviews. The CIP was reviewed by the Planning Commission on May 13, 2015 and was found in conformance with the General Plan as required by Government Code Section 65401. The proposed five-year capital improvement plan represents an investment in the City’s infrastructure, fleet, technology, and building facility assets. Based on the Council determined goals, and balanced with the City’s financial circumstances, the recommended General Fund capital improvement projects total $14.8 million for the 2015-17 Financial Plan and $32.8 million over the five-year plan. The capital investment for the enterprise funds total $11.7 million for 2015-16 and $88 million in 2016-17 which includes $76.8 million for the Water Resource Recovery Facility upgrade project. Focus of the Budget Workshops and Budget Adoption Tuesday, June 9 Budget Workshop (Starts at 5:00 PM) 5:00 PM 1. Overview of key budget issues, financial highlights, Major City Goals and Other Important Council Objectives 2. City Department presentations of operating programs 3. Public Comment and City Council discussion/direction (focus on General Fund operating programs) Thursday, June 11 Budget Workshop (Starts at 4:00 PM) 4:00 PM 1. Capital Improvement Plan presentation 2. Public Comment and City Council discussion/direction Tuesday, June 16 Budget Workshop and Public Hearing (Starts at 6:00 PM) – Enterprise Fund Reviews, programs, projects, revenues and rates or fees 6:00 PM 1. Parking Fund Review a. Presentation b. Public Comment and City Council discussion/direction 2. Transit Fund Review a. Presentation b. Public Comment and City Council discussion/direction 3. Sewer Fund Review and Rate Adoption a. Presentation b. Public Hearing c. City Council action on proposed sewer rates for 2015-17 4. Water Fund Review and Rate Adoption a. Presentation B1 - 7 Preliminary 2015-17 Financial Plan Page 8 b. Public Hearing c. City Council action on proposed water rates for 2015-17 5. Continue meeting to June 23, 2015 Tuesday, June 23 Budget Adoption Public Hearing (Starts at 5:00 PM) Adoption of the Preliminary 2015-17 Financial Plan is scheduled for Tuesday, June 23, 2015. Tuesday, June 30 Continued Budget Adoption Public Hearing, if needed (Starts at 5:00 PM) Continuation of adoption of the Preliminary 2015-17 Financial Plan is scheduled for Tuesday, June 30, 2015, if needed. ATTACHMENTS 1. Draft Resolution adopting the 2015-17 Financial Plan 2. Land Conservancy Octagon Barn proposal PROVIDED TO COUNCIL AND AVAILABLE ON-LINE 1. 2015-17 Preliminary Financial Plan 2. 2015-17 Capital Improvement Plan 3. Updated Significant Operation Program Change descriptions (Reading File) B1 - 8 Attachment 1 RESOLUTION NO. (2015 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE 2015-17 FINANCIAL PLAN AND 2015-16 BUDGET WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City Manager has submitted the 2015-17 Financial Plan to the Council for its review and consideration consistent with budget policies and objectives established by the Council; and WHEREAS, the 2015-17 Financial Plan is based upon extensive public comment and direction of the Council after scheduled budget workshops and public hearings held on June 9th, 11th, 16th and 23rd. NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo that: 1. The 2015-17 Financial Plan is hereby approved and that the operating, debt service and capital improvement plan budget for the fiscal year beginning July 1, 2015 and ending June 30, 2016 is hereby adopted. 2. Where fund reserves are used as shown in the 2015-17 Financial Plan, restricted reserves shall be drawn down in advance of any draws from unrestricted reserves and when unrestricted reserve amounts are drawn down, committed and assigned amounts shall be used in advance of any draws from unassigned reserve amounts, whenever possible. On motion of ___________________, seconded by _______________________, and on the following vote: AYES: NOTE: ABSENT: the foregoing Resolution was passed and adopted on June , 2015. ______________________________ Mayor Jan Marx ATTEST: Anthony Mejia, City Clerk APPROVED: Christine Dietrick, City Attorney B1 - 9 Page intentionally left blank. B1 - 10 Raising A Barn, Raising a Community Octagon Barn Center City of San Luis Obispo Partnership Proposal April 2015 Attachment 2 B1 - 11 After decades of effort along San Luis Creek: The Land Conservancy controls key pieces along the next phase in developing the Bob Jones Pathway. 4/28/2015 © Land Conservancy of San Luis Obispo 2 The Octagon Barn Center is the new start of the Bob Jones Trail Attachment 2 B1 - 12 © Land Conservancy of San Luis Obispo 3 Buckley Road Extension Geographic Orientation (North to Left) Avila Ranch City of SLO Trail Routes Existing & Preferred Future County Bob Jones City-to-Sea Trail Route Octagon Barn Center Caltrans Maintenance Yard Attachment 2 B1 - 13 The Octagon Barn Center Start of the Bob Jones City- to-Sea Trail (Multi-modal trailhead designation & amenities) Octagon Barn (Historic structure & event space for up to 200; 5000 sq. ft.) “Barn Commons” Open Space with “The Shed” Milking Parlor (Education & meeting space for 100) Wetland Open Space Parking Area (112 spaces) Calf Barn & Trail Start: 2 restrooms; shelter; bike racks; water station; picnic area; kiosk 1997 2009 ¼ mi. walking path The Shed: 4 restrooms; windscreen; shelter Buckley Road access Attachment 2 B1 - 14 Progress and Partnerships Hayashi; Caltrans; County Parks 2008 – Octagon Barn restoration complete; Land Conservancy has pending lease for 2 acres. Land Conservancy leases 4 acres from Caltrans (initiated March 28, 2008 in a letter from Aileen Loe). 5 year lease begins in July 2009. Land Conservancy approaches County Parks about joining together at the Barn for the Bob Jones Pathway Staging Area. MOU to work together is approved by Board of Supervisors, August 2008. 2010 – Subdivision map for the Hayashi parcel and 98 year lease is recorded; water provided to the site. September 25, 2010. 2012 – Conditional Use Permit accepted by Planning Commission. Estimated sunk cost in project (actual, volunteer, and pro bono effort) is now $1M. May 12, 2012. 2013 – SLOCOG allocates $461K for left hand turn lane on South Higuera. December 4, 2013 Octagon Barn joins the National Registry of Historic Places. November 12, 2013. Land Conservancy awarded grant from CNRA for completion of the water system and site landscaping. October 17, 2013 2014 – Operating Agreement approved by Parks Commission and Board of Supervisors. June 3, 2014 Funding secured to make sure sufficient funds were available for turn land/parking lot. 4/28/2015 © Land Conservancy of San Luis Obispo 5 Attachment 2 B1 - 15 Bob Jones City-to-Sea Multi-modal Trailhead Detail 4/28/2015 © Land Conservancy of San Luis Obispo 6 Attachment 2 B1 - 16 The Commons Open Space Shelter, Restrooms, Lawn, Amphitheater Key Shed Features: •Four restrooms stalls •Backdrop and windscreen for outdoor open space •Interior storage and small gathering space •Sheltered outdoor space (wind/rain); Display/info area Key Commons Features: •Multi-use open space with views of conservation lands •Outdoor seating and gathering place for 200 •Natural amphitheatre setting for classrooms, large groups, etc. 4/28/2015 © Land Conservancy of San Luis Obispo 7 Shed Concept Drawing Commons Open Space Octagon Barn Center Attachment 2 B1 - 17 4/28/2015 © Land Conservancy of San Luis Obispo 8 Project Budget Project Components Cost Estimate In-Kind & Direct Investment (before present time) $1,000,000 Barn Parcel (lease) $0 Land for parking (lease) $0 Site Grading & Parking Lot Construction (permeable paving, bike path, permits, etc.) $1,800,000 Turn Lane Engineering & Construction $535,000 Milking Parlor Rennovation (construction, electrical, plumbing, permits, occupancy requirements, etc.) $400,000 Barn Upgrades for Occupancy & Events (fire protection, electrical connection, concrete floor, interior furnishings, safety measures, etc.) $180,000 Toilets & Plumbing (6 stalls) $150,000 Barn Commons Open Space & Utility Shed (landscaping, amphitheater, seating, shelter, restroom facilities building, trash/recycling, display, etc.) $158,000 Start-up Costs & Support Funding $150,000 Pump House & Water Tanks $143,000 Landscaping & Plant Screening (native plants, pathways, walking trail, lighting, etc. $92,000 Multi-modal Trail Start Amenities & Calf Barn (trailhead designation, bike racks, water station, picnic area, seating, restroom structure, info kiosk, trash/recycling, etc. $48,000 Permits, Fees, Insurance, Contingency $50,000 Total Cost $4,706,000 Attachment 2 B1 - 18 4/28/2015 © Land Conservancy of San Luis Obispo 9 Anticipated Funding Sources Funding Source Income Estimate % of Total San Luis Obispo County & SLOCOG $2,485,000 53% The Land Conservancy of San Luis Obispo County & Previous Major Funding Partners $1,000,000 21% Private Donor Charitable Gifts $435,000 9% EEMP Grant, State of CA Natural Resources $235,000 5% City of San Luis Obispo $206,000 4% Local Foundation (Pledge) $135,000 3% Foundations & Grants $120,000 3% Local Business Contributions $50,000 1% Private Contribution (Pledge) $40,000 1% Total Cost $4,706,000 100% Attachment 2 B1 - 19 City of San Luis Obispo Partnership Request 4/28/2015 © Land Conservancy of San Luis Obispo 10 •Establish formal commitment of support from the City of San Luis Obispo •Enter into a MOU to memorialize the relationship between the City of San Luis Obispo and the Octagon Barn Center •Formalize partnership to establish working relationship, framework and uniform goals •Octagon Barn Center will likely be annexed into the City in the future •Assist City in meeting current Major City Goals via Octagon Barn Center Opening 2016 •Gateway facility serving residents & visitors as community open space •Multi-modal transportation hub of the Bob Jones City-to-Sea Trail and other SLO City bike paths •Funds will directly support expanding open space around the City and providing visitor-serving amenities at a new multi-modal transportation trailhead & trail hub •Inclusion of interpretive displays, info kiosk, and way-finding signage in coordination with City staff •Return on investment •Reasonable upfront investment of $206K (4% of total project cost) from 2015-2017 City Budget will leverage $4.5M from other sources •City will have no long-term liability or maintenance costs for a major amenity serving its residents and visitors •Opportunity for City naming rights and public acknowledgment on-site Attachment 2 B1 - 20 Project Plan & Timeline •Keep County Parks on track to get grading done within 2015 (winter/spring season) •Track work by Wallace Group on behalf of County Parks •Secure commitment from County Parks for bathroom installation •LC to develop water infrastructure per our EEMP grant [“Element 1”] (mid- 2015) •Permit issued in February 2015 •Complete Small Water Company agreement and start service (mid-2015) •Raise sufficient funds to inaugurate the Octagon Barn Center (2015-2016) •Dependent on County grading and turn lane: •Landscape in Winter, per EEMP grant [“Element II”]. •Complete fire safety (sprinklers) and access amenities for Barn. •Construct Calf Barn Restroom Building and Barn Commons Open Space (mid- 2016) •Inaugurate Octagon Barn Center (open for parking & occupancy) by late-2016 4/28/2015 © Land Conservancy of San Luis Obispo 11 Attachment 2 B1 - 21 4/28/2015 © Land Conservancy of San Luis Obispo 12 Attachment 2 B1 - 22 Preliminary Budget Review City Council Workshop #1 2015-17 Financial Plan June 9, 2015 Budget Workshop Series Preliminary Budget Review June 9 1.Key Budget Issues 2.Major City Goal Work Programs 3.General Fund Operating Programs June 11 1.Capital Improvement Plan June 16 1.Enterprise Fund Reviews 2.Water/Sewer Rate Reviews June 23 1.Budget Adoption 2 Tonight’s Presentation Overview Preliminary Budget Review 1.Maintaining Sustainability Now and in the Future a.Fiscal Responsibility Philosophy b.New resources for providing service 2.Major City Goals and Objectives – Work Programs 3.Local Revenue Measure Summary 4.Other Financial Plan Highlights a.Budget Assumptions b.General Fund Revenues and Expenses c.All Funds – Expenses and Reserves d.Functional Area Highlights e.Uncertainties f.Changes since Strategic Budget Direction 5.Wrap -up 3 Fiscal Sustainability: Now and in the Future Preliminary Budget Review 4 All Funds Combined Actual 2013-14 Current 2014-15 2015-16 2016-17 Operating Programs 79.7 88.5 92.8 94.5 Capital Improvement Plan 15.9 73.6 22.3 104.7 Debt Service 8.1 10.0 7.6 12.4 Total $103.7 $172.1 $122.7 $211.6 Financial Plan (millions) 1.Operating revenues are equal to or greater than operating expenditures, including debt service, across all City funds. 2.Continued investment in capital improvements. 3.Prefund portions of long-term liabilities. 4.Maintaining and enhancing quality of life for the community through funding for new or expanded services. New Resources for Providing Service Preliminary Budget Review 5 •Response to growing demands for service. •Mostly funded by application and user fees. •Some positions needed to implement Major City Goals. Fiscal Responsibility Philosophy Preliminary Budget Review 6 1.Informed Decision-making 2.Shared responsibility 3.Increased Transparency 4.Aligned Investments 5.Diversified and Aligned Revenue Sources 6.Long-Term Unfunded Liabilities 7.Continued Efficiency and Effectiveness Commit to fiscal responsibility through good economic times, as well as economic downturns, with the following directives: Major City Goals & Other Important Objectives Preliminary Budget Review 7 Major City Goals & Other Important Objectives Preliminary Budget Review 8 20% 59% 1% 16% 3% 1% 2015-17 Major City Goal/Objective Capital Expenditures ($20.9M) Open Space Preservation Multimodal Transportation Housing Neighborhood Wellness Laguna Lake Restoration Downtown 5% 40% 21% 24% 2% 8% 2015-17 Major City Goal/Objective Operating Expenditures ($3.1M) Open Space Preservation Multimodal Transportation Housing Neighborhood Wellness Fiscal Sustainability Downtown Budget Page C-5 Major City Goal: Open Space Preservation Preliminary Budget Review Protect and Maintain Open Space. Work Program: 1.Real Property Acquisition and Conservation Planning 2.Open Space Enhancements, Maintenance, User Safety and Patrol 3.Land Restoration, Stewardship, Monitoring, and Education 4.Wildland-Urban Interface Fuel Reduction Related CIP Projects: 1.Open Space Acquisition (existing) 2.Open Space Acquisition (new) 3.Open Space Maintenance 4.Ranger Fleet Vehicle Related SOPCs: 1.Open Space Ranger (1 FTE) 9 Budget Page C-6 Major City Goal: Multi-Modal Transportation Preliminary Budget Review Prioritize implementation of the Bicycle Master Plan and improve and maintain bicycle, pedestrian, and transit facilities. Work Program: 1.New or Expanded Programs a.Examples: Bike Plan implementation, Active Transportation Manager, sidewalk & bike path maintenance, markings & legends, Short-Range Transit Plan 2.Continued Programs a.Examples: Bicycle facilities, Bob Jones and Railroad Safety trails, Mission Plaza railing, Safe Routes to School, traffic safety, street maintenance Related SOPCs: 1.Transportation Planner/Engineer and Transportation Program Assistant 2.Dev. Services Staffing & CDD Reorg 4.Short Range Transit Plan and Transit Marketing 5. LUCE Implementation & Fee Update 10 Budget Page C-13 Major City Goal: Multi-Modal Transportation Preliminary Budget Review Prioritize implementation of the Bicycle Master Plan and improve and maintain bicycle, pedestrian, and transit facilities. Related CIPs: Bikes, Peds, All Modes 1.Traffic, Bicycle & Pedestrian Markings 2.Bob Jones Prefumo Creek Bike Path 3.BTP Implementation 4.Bicycle Facility Improvements 5.Bob Jones Octagon Barn Bike Path 6.Safe Routes to School 7.Neighborhood Traffic Management 8.Traffic Safety Improvements 9.Marsh & Higuera Lighted Crosswalk 10.Mission Plaza Railing Upgrades 11.Pedestrian & Bicycle Pathway Maintenance 12.Sidewalk Ramp Construction 13.Sidewalk Repairs & Tree Replacement 14.Street Reconstruction & Resurfacing 15.Santa Fe Realignment & Bridge Rehab 16.South & Parker Traffic Safety 17.Prado Road Bridge Widening 18.Traffic Operations 19.Transportation Monitoring 20.Monterey & Osos Safety Project 11 Budget Page C-13 Major City Goal: Housing Preliminary Budget Review Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. Work Program: 1.Implement the Housing Element 2.Facilitate workforce and affordable housing options 3.Facilitate supportive and transitional housing options 4.Support for needed infrastructure within the City’s fair share (LUCE) Related CIP Projects: 1.Infrastructure Investment Fund Related SOPCs: 1.Dev. Services Staffing & CDD Reorg 2.LUCE Implementation & Fee Update 3.Zoning Regulations Update 12 Budget Page C-19 Other Important Objective: Neighborhood Wellness Preliminary Budget Review Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. Work Program: 1.Work with residents and educational institutions and students 2.Public safety 3.Collaborative Solutions 4.Code Compliance 5.Administrative Order Process 6.Maintenance Related CIP Projects: 1.Sidewalk Repair 2.Storm drain Replacements 3.Silt Removal 4.Neighborhood Street Repairs Related SOPCs: 1.Rental Housing Inspection 2.Neighborhood Match Program 13 Budget Page C-35 Other Important Objective: Laguna Lake Restoration Preliminary Budget Review Initiate implementation of the Laguna Lake Natural Reserve Conservation Plan. Work Program: 1.Install new, updated signage at trailheads and along trails 2.Install accessible paths 3.Install sediment basins 4.Begin a dredging project 5.Evaluate long-term project financing options and mechanisms Related CIP Projects: 1.Open Space Maintenance 2.Laguna Lake ADA Paths 3.Laguna Lake Dredging and Sediment Related SOPCs: 1.n/a 14 Budget Page C-38 Other Important Objective: Fiscal Sustainability and Responsibility Preliminary Budget Review Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. Work Program: 1.Increased use of performance management and reporting, including new public dashboards 2.Address long term unfunded liabilities 3.Maintain diversified and aligned revenue sources 4.Explore options and opportunities to control costs, i.e. insurance premiums Related CIP Projects: 1.n/a Related SOPCs: 1.Request for Business License Compliance Services 15 Budget Page C-42 Other Important Objective: Downtown Preliminary Budget Review Adopt a Downtown Concept Plan, develop a plan for expansion of Mission Plaza, and improve safety, infrastructure, and maintenance in the Downtown. Work Program: 1.Vision and Economic Vitality 2.Safety 3.Infrastructure and Maintenance Related CIP Projects: 1.Lighted Crosswalk Replacement 2.Sidewalk Repairs & Tree Replacement 3.Mission Plaza Railing Upgrade 4.Mission Plaza Restroom Replacement 5.Marsh Bridge Replacement Related SOPCs: 1.Assistant Parking Services Manager 2.Downtown Concept Plan (LUCE) 3.Video Cameras 16 Budget Page C-46 Local Revenue Measure Expenditures 17 Preliminary Budget Review 13% 11% 4% 20% 23% 3% 19% 7% 2015-17 Local Revenue Measure Expenditures ($16.8M) (operating & capital) Open Space Preservation Bicycle & Pedestrian Improvements Traffic Congestion Relief (Safety Improvements) Public Safety Neighborhood Street Paving Code Enforcement Flood Protection Parks & Recreation/ Senior Programs & Facilities •Voter-approved sales tax to protect and maintain essential services and facilities. •Expenditures have been reviewed and approved by the Citizen’s Revenue Enhancement Oversight Commission (REOC). Budget Page A-24 Other Financial Plan Highlights 1.Budget Assumptions 2.General Fund Revenues and Expenses 3.All Funds – Expenses and Reserves a.More on Enterprise Funds June 16 4.Functional Area Highlights 5.Uncertainties 6.Changes since Strategic Budget Direction 18 Preliminary Budget Review Other Financial Plan Highlights: 2015-17 Preliminary Budget Review 19 1.2.9% savings forecast from staffing costs each year 2.2.5% savings from non-staffing costs in 2nd year of Financial Plan 3.Adequate revenue base to sustain ongoing costs a.Revenue growth in General Fund is 3.4% over 2014-15 with modest growth in later years b.Forecasts for both revenues and expenses are reasonable and prudent in light of current information 4.Cost Allocation Plan reimbursements incorporated 5.Utility Cost of Service fees analysis incorporated 6.No new fees except those related to rental housing inspections Budget Assumptions Other Financial Plan Highlights: General Fund Revenue Preliminary Budget Review 20 1.Top 3 revenues (65% of total GF): a.Sales Tax (incl. Measure G) b.Property Tax c.Transient Occupancy Tax 2.Major revenues are growing a.Consistent and moderate growth 3.Revenues up 3.4% from 14-15 General Sales Tax, 27% Measure G Sales Tax, 11% Property Tax, 15% TOT, 11% Utility Users Tax, 9% Other Taxes, 7% Property Tax In-lieu VLF, 6% Service Charges, 12% All Other Revenues, 1% 2015-16 General Fund Revenues ($63.2 million) Other Financial Plan Highlights: General Fund Revenue 21 $43,000,000 $48,000,000 $53,000,000 $58,000,000 $63,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Fund Revenue Trend Total Revenue Total Revenue Excluding Grants Preliminary Budget Review 22 Other Financial Plan Highlights: General Fund Revenue $3,821,900 Property Tax $13,768,300 $1,000,000 Local Sales Tax $7,133,000 $6,589,500 General Sales Tax $17,247,000 $2,641,500 TOT $6,844,000 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Top 4 Revenues (1996 - 2016) Preliminary Budget Review CIP transfer, 12% Debt Service transfer, 4% Other Transfers, 3% Operating Costs, 81% Total General Fund Expenses and Transfers Out ($72 M) Other Financial Plan Highlights: 2015-16 General Fund Expenses 23 Operating costs Staffing, 74% Other Operating, 17.0% Contract Services, 9.0% Breakdown of General Fund Operating Costs ($58 M) Preliminary Budget Review Other Financial Plan Highlights: General Fund Expenses 24 General Government 23% Public Safety 44% Transportation 6% Leisure, Cultural, Social Services 13% Community Development 14% 2015-16 General Fund Operating Costs by Functional Area ($58 million) Preliminary Budget Review Other Financial Plan Highlights: General Fund 1.General Fund Revenue and Expenditure forecasts are consistent with the April update of the 5 Year Financial Forecast a.Forecast is based on prudent and reasonable estimates b.No new fees are proposed except those related to rental housing inspections 2.Measure G supported costs will be reflected in a new sub-fund of the General Fund 3.Fleet and I.T. replacement schedules are adequately funded 4.New Infrastructure Investment Fund is included in 2015-17 Financial Plan 5.One-time expenditures total $6.2M a.Investments in CalPERS, OPEB, Capital Improvements 25 Preliminary Budget Review Other Financial Plan Highlights: All Funds Preliminary Budget Review 26 General Fund 45% Other Funds 15% Enterprise & Agency Funds 40% 2015-16 Expenditures by Fund Type ($122.7 million) Operating Programs 76% Capital Improvement Plan 18% Debt Service 6% 2015-16 Expenditures by Category ($122.7 million) Other Financial Plan Highlights: Capital Improvement Plan Costs by Function 27 Operating Programs 76% CIP 18% Debt Service 6% 2015-16 Expenses (All Funds) Functional Area CIP Expense Public Safety $1,728,200 Public Utilities $11,228,147 Transportation $5,400,764 Leisure, Cultural & Social Services $1,875,500 Community Development $1,811,250 General Government $236,406 Total $22,280,267 More on Capital Improvement Plan at June 11 Preliminary Budget Review Preliminary Budget Review Other Financial Plan Highlights: 2015-17 Debt Service 1.The budget reflects that the City is able to meet its debt service obligations 2.2016-17 new debt proposed: a.Fleet Replacement of fire engine #2 and street sweeper totaling $1.2 million in 2016-17 b.Sewer Fund will borrow $74 million for WRRF upgrade c.Water Enterprise may borrow up to $5 million for Reservoir #2 upgrade 28 Preliminary Budget Review Other Financial Plan Highlights: 2017-20 Debt Service 1.2017-18 new debt proposed: a.Fleet Replacement of dump truck and street sweeper totaling $591,000 in 2017-18 b.Parking Fund will borrow for Palm/Nipomo parking structure – estimated at $23.6 million 2.2019-20 new debt proposed: a.Fleet Replacement of fire engine #3 totaling $623,500 in 2019-20 b.I.T. Replacement Fund will borrow approximately $2.5 million for replacement of various hardware items 29 Preliminary Budget Review Other Financial Plan Highlights: Fund Reserves 1.All funds meet their required fund balance reserve targets 2.Fund balance use is limited to one-time, not on-going purposes 3.The General Fund is forecast to maintain a modest excess over the 20% minimum reserve level over the 5 Year Financial Forecast period 4.New policies are proposed, setting contingency levels for the Fleet and I.T. replacement funds 30 Preliminary Budget Review Other Financial Plan Highlights 1.Updated Investment Policy and Investment Management Plan are proposed a.Policy and Budget adoption resolution reflect delegation of investment responsibility to City Treasurer for 2015-16 2.Master user fee schedule is proposed for update using CPI increase a.Value of change is not included in the Financial Plan b.Changes to the master fee schedule based on the current fee study will be brought back to Council in late Summer or Fall 31 Preliminary Budget Review Functional Areas City Departments and Operating programs are organized by: 32 Public Safety Public Utilities Transportation Leisure, Cultural & Social Services Community Development General Government Preliminary Budget Review Functional Areas 33 Preliminary Budget Review Public Safety 28% Public Utilities 23% Transportation 10% Leisure, Cultural & Social Services 8% Community Development 11% General Government 20% 2015-16 Operating Budget ($92.8 million) Functional Areas: Operating Changes (SOPCs) Preliminary Budget Review 34 14% 20% 21% 2% 21% 22% 2015-16 Summary increases by function ($3.6M) Public Safety Public Utilities Transportation Leisure, Cultural, and Social Services Community Development General Government 6% 14% 13% 2% 32% 33% 2016-17 Summary increases by function ($4.7M) Public Safety Public Utilities Transportation Leisure, Cultural, and Social Services Community Development General Government Functional Area Highlights •Public Safety •Police Department •1 FTE added in 2015-16 for Communications Tech •Animal Service Cost increase $11,610 in 2015-16 and $20,871 in 2016-17 •Fire Department •Fire apparatus repair equipment $26,000 in each year for 2015-17 •Emergency responder turnout gear replacement $110,464 in 2015-16 •Rescue Training $59,776 in 2015-16 •Public Utilities •Water Enterprise Fund •Special studies cost $50,000 in 2015-16 and $10,000 in 2016-17 •Control system staff1 cost $106,900 in 2015-16 and $106,200 in 2016-17 •Drought response strategy approved on 6/2 will add $179,000 to 2015-16 •Department reorganization costs $136,700 in 2015-16 and $136,950 in 2016- 17 35 Preliminary Budget Review Functional Area Highlights •Public Utilities •Sewer Enterprise Fund •Special studies cost $25,000 in 2015-16 and $5,000 in 2016-17 •Control system staffing1 cost $118,750 in 2015-16 and $117,900 in 2016-17 •Lab Analyst add 1 FTE $77,200 in 2015-16 and $81,200 in 2016-17 •Department reorganization costs $136,700 in 2015-16 and $136,950 in 2016- 17 •NPDES Permit Studies $17,000 per year in 2015-17 •Minor capital costs $37,400 in 2015-16 and $20,000 in 2016-17 •Whale Rock Commission •Control system staffing1 cost $11,600 in 2015-16 and $11,500 in 2016-17 1 Control system staffing adds 2 FTEs 36 Preliminary Budget Review Functional Area Highlights •Transportation •Transit Enterprise Fund •1 FTE converted from existing part-time position for Transit Program Assistant $57,800 in 2015-16 and $62,300 in 2016-17 •Parking Enterprise Fund •1 FTE converted from existing position for Assistant Parking Services Manager $53,000 in 2015-16 and $58,400 in 2016-17 •Adding part-time Admin. Hearing Officer – no additional cost in 2015-17 •Leisure, Cultural and Social Services •Reorganize golf course operations and add 1 FTE for Recreation Coordinator but with no added cost to program 37 Preliminary Budget Review Functional Area Highlights •Community Development •Add 1 FTE for Project Engineer III $136,500 in 2015-16 and $145,200 in 2016-17 •If approved, staff proposes to offset the higher cost by reductions in street reconstruction/resurfacing and storm drain replacements for a total of $136,500 in 2015-16 and $145,200 in 2016-17 •Project Management Software $27,000 in 2015-16 and $25,200 in 2016-17 •General Government •Additional liability insurance premium cost $294,163 in 2015-16 and $556,942 in 2016-17 •Additional workers comp insurance premium cost $388,016 in 2015-16 and $690,956 in 2016-17 38 Preliminary Budget Review Uncertainties •CalPERS continues to study the retirement funding model this year •Looking for best way to minimize volatility and the discount rate •Financial Plan and 5 Year Forecast reflect current assumptions for employer cost •Changes in OPEB reporting will create higher liability based on implied subsidy •Financial Forecast reflects the higher cost expected from this change as it will occur after 2016-17 •Insurance premiums for Workers Compensation and Liability increasing faster than originally expected in 2013-15 Financial Plan •Financial Plan and 5 Year Forecast reflect growth assumptions in excess of those provided by CJPIA due to their history of understating premium increases •Drought conditions continue require adaptation for impacts 39 Preliminary Budget Review Changes Since Strategic Budget Direction 40 Broad Street Bike Boulevard: •An alternative has been developed to allow the Council to consider trade-offs in relation to the Broad Street Bike Boulevard concept. Octagon Barn: •$50,000 is recommended in support of the Land Conservancy and the Octagon Barn project from existing resources. Organizational Support Services: •$166,000 allocated to address high priority organizational issues, with expenditures to return to the City Council for review and approval. Laserfiche SOPC •This project, totaling $14,200, was previously approved and implemented, but ongoing funding was never allocated through the financial plan. Cost Allocation Reimbursements and Utility Cost of Service Fees Updated •These updates will also be presented to Council as a separate item on 6/23/15. Preliminary Budget Review Changes Since Strategic Budget Direction 41 Water Enterprise Fund Debt •The fund identified the need to borrow up to $5 million to pay for the construction of Reservoir #2 in 2016-17 Transit Enterprise Fund •SOPC for Short Range Transit Plan development now reflects annual cost of $250,000 instead of $500,000 per year •SOPC for Transit Marketing and Advertising program now reflects annual cost of $30,000 per year instead of $60,000 per year Preliminary Budget Review Conclusion Preliminary Budget Review 42 1.Slow and steady growth in service level and capital investments expected. 2.Allocate resources to continue providing high quality services to the community. 3.Continue to involve the public, advisory bodies, & community partners in budget. Goal: Maintain fiscal health and invest in the future. January 2015 Budget Community Forum Recommendation Preliminary Budget Review 43 1.Review and consider the Preliminary 2015-17 Financial Plan at the budget workshops and public hearings scheduled for June 9, 11, and 16, 2015, and consider adoption of the budget at the June 23, 2015 City Council meeting. 2.Provide direction on General Fund Operating Program changes. Regular Staffing Changes: General Fund Preliminary Budget Review 44 NEW 1.Communications Technician 2.Fire Inspector 3.Deputy City Clerk 4.Code Enforcement Supervisor – Rental Housing 5.Code Enforcement Officers (2) – Rental Housing 6.Administrative Assistant – Rental Housing 7.Ranger Maintenance Worker EXISTING/CONVERTED 1.Engineer Technician 2.Senior Civil Engineer 3.CDD Receptionist/Cashier 4.Associate Planner 5.Special Projects and Policy Manager 6.Transportation Planner/Engineers (3) 7.Capital Project Engineer 8.Recreation Coordinator Regular Staffing Changes: Enterprise and Agency Funds Preliminary Budget Review 45 NEW 1.Water Quality Laboratory Analyst 2.Control Systems Administrator 3.Control Systems Technician 4.Utilities Engineer 5.Health and Safety Engineer 6.Administrative Assistant (.2) EXISTING/CONVERTED 1.Transportation Assistant in Transit 2.Assistant Parking Services Manager June 9 Council Memo Preliminary Budget Review 46 City Public Open Space Acreage Staffing Levels Number of Parks and Open Space Properties Miles of Trail Population Funding Source Aurora, Colorado 7,000 acres 21 full-time 9 Ranger Patrol 12 Ranger Maintenance & Operations 110 76 348,000 General Fund Operating & CIP; Dedicated Sales Tax; Lottery Boulder, Colorado 6,555 acres 11 rangers 9 maintenance workers 3 education and outreach 400 145 103,000 Dedicated Sales Tax Bend, Oregon 2,500 acres 17 rangers & maintenance workers 26 seasonal staff 81 65 82,000 Dedicated Bond Measure San Luis Obispo 4,000 acres 2 Full Time Rangers (including 1 Supervisor) 2 Limited Benefit Temp 1 City Worker 5 47 52 46,000 General Fund Operating & CIP; Measure G Ranger Service Comparison Use of One-Time Funding 47 2014-15 above 20% Total CalPERS pension liability $750,000 OPEB liability $250,000 Roads $275,000 Fleet Equipment $450,000 IT Equipment $450,000 Rental Inspection Program start-up costs (total project cost of $274,764) $232,000 Open Space Acquisition $250,000 Open Space Maintenance (Capital Projects) $285,000 Laguna Lake ADA Trail $250,000 Infrastructure Investment Fund $250,000 LUCE implementation (total year 1 project cost of $305,000) $133,000 TOTAL $3,575,000 CalPERS OPEB Roads Fleet IT Equipment Rental Inspection Open Space Acquisition Open Space Maintenance Laguna Lake ADA Trail Infrastructure Investment Fund LUCE 2014-15 Fund Balance Preliminary Budget Review Use of One-Time Funding 48 2015-16 above 20% Total Bikes Multimodal $400,000 Laguna Lake Dog Fencing $50,000 Police Station Feasibility Study $45,000 Laguna Lake Conservation $450,000 Fire Department Turnouts $110,000 Open Space Maintenance Year 2 $285,000 LUCE implementation Year 1 $172,000 LUCE Implementation Year 2 $325,000 Wayfinding Signs $175,000 Public Safety video cameras $32,000 Traffic Signal: Monterey/Osos $225,000 Fire Training $46,000 Open Space Acquisition $250,000 Fire Dept. #1 parking lot $22,000 TOTAL $2,587,000 Bikes Multimodal Laguna Lake Dog Fencing Police Station Feasibility Laguna Lake Conservation Fire Department Turnouts Open Space Maintenance Year 2 LUCE Year 1 LUCE Year 2 Wayfinding Signs Public Safety video cameras Traffic Signal: Monterey/Osos Fire Training Open Space Acquisition Fire Dept. #1 parking lot 2015-16 One-Time Preliminary Budget Review