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HomeMy WebLinkAbout06-11-2015 B1 Preliminary 2015-17 Financial PlanCity 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 #2 2015-17 Financial Plan June 11, 2015 Budget Workshop Series 2015-17 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 2015-17 Preliminary Budget Review 1.Background - Purpose, Scope, Development 2.Proposed CIP Investments All Funds 3.CIP Investments – Enterprise Excluded 4.New Infrastructure Split 5.Key Projects 6.Wrap -Up, Questions and Direction 3 Credit: nccc2010.calpoly.edu/sanluisobispo/ Purpose, Scope, Development 4 Purpose - A Systematic Approach To Ensure: 1.Cost Effectiveness 2.Conformance With Policies 3.Consistency With Long-term Plans 4.On Time Project Delivery 5 YEAR CIP Pl a n Purpose, Scope, Development 5 SCOPE 1.$25,000 Typical Project Limit 2.Five Year Planning Horizon 3.CIP Projects Are Guided By: COUNCIL PRIORITIES AND GOALS MEASURE G PRIORITIES ADVISORY BODY INPUT Purpose, Scope, Development 6 CIP Development CIP Investments – All Funds 2015-17 Preliminary Budget Review 7 Public Safety $1,356,600 1% Transportation $11,768,031 11% Leisure, Cultural & Social Services $1,085,400 1% Community Development $2,304,000 2% General Government $607,312 1% Public Utilities $87,608,657 84% 2016-2017 CIP $104.7 Million Public Safety $1,728,200 10% Transportation $5,400,764 31% Leisure, Cultural & Social Services $1,875,500 11% Community Development $1,811,250 11% General Government $236,406 1% Public Utilities $6,304,147 36% 2015-2016 CIP $22.2 Million Proposed Projects 8 Utilities: Sewer and Water Sewer Lift Station Installation Water Main Replacement CIP Investments 9 Five Year Spending •Enterprise Funds Will Be Discussed on June 16th, 6 PM CIP Investments – 10 $10,459,173 $16,701,512 $7,886,885 $13,652,507 $9,470,659 $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 FIVE YEAR PROPOSED DOLLARS Enterprise Funds Excluded Public Safety, $1,356,600 8% Transportation, $11,768,031 68% Leisure, Cultural & Social Services, $1,085,400 6% Community Development, $2,304,000 14% General Government, $607,312 4% 2016-2017 CIP $17 Million CIP Investments – Enterprise Excluded 2015-17 Preliminary Budget Review 11 Public Safety, $1,728,200 17% Transportation $5,400,764 46% Leisure, Cultural & Social Services, $1,875,500 18% Community Development, $1,811,250 17% General Government, $236,406 2% 2015-2016 CIP $10.4 Million CIP Investments – Enterprise Excluded 2015-17 Preliminary Budget Review 12 New Improvements 11% Maintenance, Replacement Investment 89% 2015-2017 PROPOSED CAPITAL IMPROVEMENT PLAN New vs. Maintenance or Rehabilitation New vs. Maintenance and Rehabilitation 2015-17 Preliminary Budget Review 13 2015-2017 PROPOSED CAPITAL IMPROVEMENT PLAN •Prado Road Bridge, Laguna Lake, Mission Plaza Restroom, Santa Fe Road Bridge Rehab or Replace Existing Infrastructure •Pavement, Traffic Safety, ADA Ramps, Storm Drain replacements, Annual Program •PD Scheduling Program , New And Replacement Vehicles, Open Space Purchases •Infrastructure Investment Capital Fund, Bob Jones Octagon Barn Trail, Wayfinding Signs New Facilities 89% 11% Proposed Projects By Function 14 Public Safety Fire Department Electronic Patient Care Reporting Police Department Facility Site Assessment Proposed Projects By Function 15 Transportation: Bike Paths, Flood Protection, Transit Bob Jones Bike Path Corrugated Metal Pipe (CMP) Replacement Proposed Projects By Function 16 Leisure, Cultural & Social Services: Parks and Recreation Pedestrian and Bicycle Path Maintenance Sinsheimer Playground Proposed Projects By Function 17 Community Development: Natural Resources Protection, Building and Safety Open Space Protection Laguna Lake Master Plan Implementation Proposed Projects By Function 18 General Government: IT, Buildings, Fleet Management Facilities Maintenance Fleet Replacement FLEET 19 Fleet Replacement Per Year 2015-17 Preliminary Budget Review 15 8 5 2 5 34 24 32 39 0 10 20 30 40 50 60 70 # o f V e h i c l e s R e p l a c e d FLEET - 2 Year Financial Plan General Fund Vehicle Replacement 20 2015-17 Preliminary Budget Review Past Policy (Mileage) 16% Past Policy by 10 Years 4% Past Policy by 5 Years 16% Past Policy (1-5 Years) 48% Specialized Replacement Need 16% Outstanding Capital Project Issues 2015-17 Preliminary Budget Review A.Council Direction From Tuesday, June 9th B.Mission Plaza Restroom Coordination With Mission Plaza Master Plan C.Bike Transportation Plan Implementation 21 Outstanding Capital Project Issues 22 Revised per Council direction of June 9, 2015 1. BTP Prioritization Education & Advocacy Program $5,000 2. Active Transportation Education & Advocacy Program $10,000 3. Highland & Chorro Bicycle Improvements $20,000 4. Boysen & Santa Rosa Crossing Project Study Report Deferred 5. Prado Rd. Class I Connection Project Development & Right of way $100,000 6. Chorro & Foothill Bike Box $10,000 7. RRST Class I Connection Laurel & Orcutt $150,000 8. Bicycle & Pedestrian Grants Support $15,000 9. Broad Street Bike Boulevard Plan Development $90,000 10. Octagon Barn Total: $400,000 Bike Transportation Plan Implementation – Total $400,000 2015-17 Preliminary Budget Review Summary For 2015-2020 2015-17 Preliminary Budget Review A.A Sustainable Plan For Future Capital Expenditures B.Incorporates Community Input, Council Priorities and Goals, Advisory Body Input and Local Revenue Measure Priorities C.Greater Emphasis On Infrastructure Maintenance: 1.Additional Funding For Sidewalk Repair (Accessibility) 2.Increase In Storm Drain Funding (Flood Reduction) 3.New maintenance initiatives: a.Parks Major Maintenance b.Open Space Maintenance c.Street Marking and Striping Annual Program 23 Recommendation 2015-17 Preliminary Budget Review 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 to staff on the 2015-17 Preliminary Capital Improvement Plan 24 Infrastructure Investment Capital Fund: Goal to help fund infrastructure projects that benefit quality of life and economic development Guidelines established by Council Evaluated and ranked according to specific criteria Request for IICF funding would be made by a member of the public, a private developer, or City staff The project could be stand-alone, or proposed in combination with a specific private development proposal Projects measured and reported against baseline benefits Funding $60K (current), $250K (2015-16), $250K (2017-18) Aligning Trans. Capital with Mode Split Goal 2015-17 Preliminary Budget Review 26 Bike, 20% Ped , 18% Transit, 12% Vehicle, 50% General Plan Modal Split Goal Bike, 23% Ped , 27% Transit, 4% Vehicle, 46% ~$3.6m ~$4.6m ~$600k ~$7.3m 2015-17 Trans. Capital Funds By Mode Bicycle Transportation Plan CIP Alternaternate 2015-17 Preliminary Budget Review 27 1.BTP Prioritization & Implementation Plan 2.Active Trans. Education & Advocacy 3.Highland & Chorro Bicycle Improvements 4.Boysen & Santa Rosa Bridge/Tunnel PSR 5.Prado Rd. Class I Connection Project Dev. 6.Chorro & Foothill Bike Box 7.RRST Class I Connection Laurel & Orcutt 8.Bicycle & Pedestrian Grants Support Bicycle Transportation Plan CIP Alternaternate 2015-17 Preliminary Budget Review 28 BROAD STREET BIKE BLVD. PLAN DEV. 1.BTP Prioritization & Implementation Plan 2.Active Trans. Education & Advocacy 3.Highland & Chorro Bicycle Improvements 4.Boysen & Santa Rosa Bridge/Tunnel PSR 5.Prado Rd. Class I Connection Project Dev. 6.Chorro & Foothill Bike Box 7.RRST Class I Connection Laurel & Orcutt 8.Bicycle & Pedestrian Grants Support 9.Octagon Barn Contribution CIP Investments – All Funds 2015-17 Preliminary Budget Review 29 20% 59% 1% 16% 3% 1% 2015-17 Major City Goal/Objective Capital Expenditures Open Space Preservation Multimodal Transportation Housing Neighborhood Wellness Laguna Lake Restoration Downtown Fleet – Examples of Specialized Replacement Needs 2015-17 Preliminary Budget Review 1)Police Motorcycles: Current Policy only has Mileage Recommendation a.3 Motor Cycle Proposed for Replacement all over 11 years at TOR 2)Problematic Vehicle Types/Use a.Police Dodge Chargers (2) b.Police Chevy Caprice 3)Regulations a.Fire Forklift – CARB Regulations (no longer in fleet) 30 FLEET 31 2015-17 Preliminary Budget Review FLEET 32 2015-17 Preliminary Budget Review