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HomeMy WebLinkAbout06-14-2016 Item 22 Adopting of 2016-17 Gann Limit and 2015-17 Financial Plan Supplemental Budget Meeting Date: 6/14/2016 FROM: Katie Lichtig, City Manager Prepared By: Derek Johnson, Interim Finance & IT Director and Assistant City Manager Shelly Stanwyck, Parks & Recreation Director Xenia Bradford, Budget Manager SUBJECT: ADOPTION OF 2016-2017 GANN LIMIT AND 2015-17 FINANCIAL PLAN SUPPLEMENTAL BUDGET RECOMMENDATION 1. Adopt a resolution (Attachment A) establishing the City’s appropriation limit for 2016-17 in compliance with Article XIII B of the State Constitution, Gann Spending Limitation Initiative; and 2. Receive and discuss the 2015-17 Financial Plan Supplemental Budget Report, including Major City Goals and Other Important Objectives progress report and the Five Year Forecast update; and 3. Adopt resolution (Attachment B) approving the 2015-17 Financial Plan Supplement and 2016-17 Budget. DISCUSSION Three actions are requested to be taken by Council with this agenda item. 1. Adopt the 2016-17 Appropriations Limit. The 1st recommended action is to adopt an appropriations limit (“Limit”) under Article XIII B of the California Constitution as amended, which the City is required to adopt each year. As a result of the City’s appropriations subject to the Limit being well below the calculated Limit for 2016 -17, no adjustments are required to be made to the proposed expenditures contained within the 2016-17 Preliminary Budget. Appropriations Limit $66,451,524 Estimated Appropriations Subject to Limit $49,397,217 Favorable Variance $17,054,306 22 Packet Pg. 636 2. Receive the 2015-17 Financial Plan Supplement. The second action is to receive and file a report that covers the 2015-2016 Fiscal Year period on progress made on Major City Goals and Other Important Objectives. This information is contained in Section B of the 2016-2017 Supplemental Budget. 3. Adopt the 2016-17 Budget. The last action for Council is to adopt the 2016-2017 Budget Supplement. Consistent with the City’s two year approach to the budgetary process, the 2016-17 Budget presented for formal Council adoption at this time has been prepared using the 2015-17 Financial Plan as its primary foundation. It also incorporates the analysis presented to Council as part of the 2015-16 Mid-Year review on February 16, 2016; and other budget changes approved by the Council since the adoption of the 2015-17 Financial Plan. The 2016-2017 Supplemental Budget includes Significant Operating Program Changes (SOPCs) that require the allocation of one time and ongoing resources. An overview of these SOPC’s is provided in the City Manager’s Budget Message with the full details of each SOPC found in Section D of the 2016-2017 Supplemental Budget. Alternatives 1. It is not recommended that the Council adjust the Gann Limit calculation as the formula is prescribed by statute and was prepared in accordance with the State Department of Finance’s guidance. This calculation is audited as part of the City’s annual financial statements. The City Council can amend the proposed 2016-2017 Budget. Direction should be provided to Staff to amend the budget within identified revenues to maintain the integrity and positive financial outlook in the 5-Year Financial Forecast. 2. Not adopt the 2016-2017 Budget or take action on the Gann Limit. This is not recommended as budget appropriations are required by the City’s Charter and are necessary to continue to operate the City. Appropriations are subject t o the Gann Limit and hence its adoption is also required. Attachments: 22.a a - Resolution - Adopting the City's Appropriations Limit for 2016-17 22.b b - Resolution - Approval of the 2015-17 Financial Plan Supplement and 2016-17 Budget Adoption 22.c c - 2015-17 Financial Plan Supplement Proposed 2016-17 Budget 22 Packet Pg. 637 R ______ RESOLUTION NO. _______ (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING THE APPROPRIATIONS LIMIT FOR 2016-17 WHEREAS, the voters approved the Gann Spending-Limitation Initiative on November 6, 1979 and Proposition 111 on June 5, 1990, which establish and define annual appropriation limits on state and local government agencies; and WHEREAS, regulations require that the governing body of each local agency establish its appropriations limit and annual adjustment factors by resolution; and WHEREAS, the required calculations to determine the City’s appropriations limit, and estimated appropriations subject to limitation for 2016-17, have been performed by the Finance & Information Technology Department are available for public review. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo hereby adopts the City’s appropriations limit and annual adjustment factors for 2016 -17 as follows: Appropriations Limit 15-16 $62,534,500 Increase in Non-Residential Assessed Valuation Due to New Construction 5.63% Population Factor: County Population Growth 0.60% Compound Percentage Factor (multiplicative not additive) 1.063% Appropriations Limit 2016-17 $66,451,524 Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2016. Mayor Jan Marx ATTEST: Lee Price, MMC Interim City Clerk 22.a Packet Pg. 638 At t a c h m e n t 2 2 . a : a - R e s o l u t i o n - A d o p t i n g t h e C i t y ' s A p p r o p r i a t i o n s L i m i t f o r 2 0 1 6 - 1 7 ( 1 3 6 4 : 2 0 1 5 - 1 7 F i n a n c i a l P l a n S u p p l e m e n t a n d 2 0 1 6 - 1 7 Resolution No. _____ (2016 Series) Page 2 R ______ APPROVED AS TO FORM: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Lee Price, MMC Interim City Clerk 22.a Packet Pg. 639 At t a c h m e n t 2 2 . a : a - R e s o l u t i o n - A d o p t i n g t h e C i t y ' s A p p r o p r i a t i o n s L i m i t f o r 2 0 1 6 - 1 7 ( 1 3 6 4 : 2 0 1 5 - 1 7 F i n a n c i a l P l a n S u p p l e m e n t a n d 2 0 1 6 - 1 7 R ______ RESOLUTION NO. _______ (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE 2015-17 FINANCIAL PLAN SUPPLEMENT, ADOPTING THE 2016-17 BUDGET, AND AMENDING THE FUND BALANCE AND RESERVE POLICY (C) WHEREAS, THE Council adopted the 2015-17 Financial Plan on June 23, 2015, which established comprehensive financial and policy guidelines for fiscal years 2015-16 and 2016-17; and WHEREAS, the 2015-17 Financial Plan included appropriations for fiscal year 2015-16; and WHEREAS, the City Council has reviewed proposed changes to the 2015-17 Financial Plan to be effective for fiscal year 2016-17 after holding noticed public hearings; and WHEREAS, the 2015-17 Financial Plan includes budget and fiscal policies that provide direction on Financial Plan Objectives, Financial Report, Budget Administration, General Revenue Management, User Fee Cost Recovery Goals, Enterprise Fund Fees and Rates, Revenue Distribution, Investments, Appropriations Limitation, Fund Balance and Reserves, Capital Improvement Management, Capital Financing and Debt Management, Human Resource Management, Productivity, and Contracting For Services; and WHEREAS, the proposed Organizational Efficiency, Effectiveness and Transparency Initiative Significant Operating Program Change in the 2016-17 Financial Plan Supplement appropriates fund for the purchase of an Enterprise Resource Planning (ERP) system to replace the City’s finance and accounting system and to provide additional functionality to increase productivity and efficiency of City services; and WHEREAS, the ERP system will be purchased over three fiscal years as a Software-as-a Service (SaaS), meaning it does not fall within the definition of a Capital Improvement Project as defined under budget and fiscal policies which allows for carryover for three years after budget adoption; and WHEREAS, amending Fund Balances and Reserves Policy (C) will allow for the carryover of appropriated funding for the ERP system for the duration of the project; and WHEREAS, the City Manager submitted the 2015-17 Financial Plan Supplement and the 2016-17 Financial Plan Supplement to the City Council for their review and consideration at a duly noticed meeting. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo as follows: 1. That the above recitals are true and correct. 22.b Packet Pg. 640 At t a c h m e n t 2 2 . b : b - R e s o l u t i o n - A p p r o v a l o f t h e 2 0 1 5 - 1 7 F i n a n c i a l P l a n S u p p l e m e n t a n d 2 0 1 6 - 1 7 B u d g e t A d o p t i o n ( 1 3 6 4 : 2 0 1 5 - 1 7 F i n a n c i a l Resolution No. _____ (2016 Series) Page 2 R ______ 2. That the Budget and Fiscal Policy, Fund Balance and Reserve Policy (C), is hereby amended in its entirety to read as follows “Information Technology (IT) Replacement Fund. The City will establish an IT Replacement Fund for the General Fun to provide for the timely replacement of information technology, both hardware and software, with an individual replacement cost of $25,000 or more. During the 2015-17 Financial Plan period, the City will establish and maintain a minimum fund balance in this fund equal to $400,000 for the emergency replacement of equipment that is damaged beyond repair and not covered under the City’s property insurance program. Interest earnings and the proceeds from the sale of surplus equipment as well as any related damage and insurance recoveries will be credited to the fund. Funds appropriated for the Enterprise Resource Planning system in the 2016 -17 Financial Plan Supplement may be carried over for the duration of the project. “ 3. That the 2015-17 Financial Plan Supplement and the 2016-17 Financial Plan Supplement is hereby adopted. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2016. Mayor Jan Marx ATTEST: Lee Price, MMC Interim City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. 22.b Packet Pg. 641 At t a c h m e n t 2 2 . b : b - R e s o l u t i o n - A p p r o v a l o f t h e 2 0 1 5 - 1 7 F i n a n c i a l P l a n S u p p l e m e n t a n d 2 0 1 6 - 1 7 B u d g e t A d o p t i o n ( 1 3 6 4 : 2 0 1 5 - 1 7 F i n a n c i a l Resolution No. _____ (2016 Series) Page 3 R ______ ______________________________ Lee Price, MMC Interim City Clerk 22.b Packet Pg. 642 At t a c h m e n t 2 2 . b : b - R e s o l u t i o n - A p p r o v a l o f t h e 2 0 1 5 - 1 7 F i n a n c i a l P l a n S u p p l e m e n t a n d 2 0 1 6 - 1 7 B u d g e t A d o p t i o n ( 1 3 6 4 : 2 0 1 5 - 1 7 F i n a n c i a l Page intentionally left blank. 1 San Luis Obispo, California 2015-17 Financial Plan Supplement Proposed 2016-17 Budget Introduction: 2015-16 State of the City 2 Major City Goals/ Other Important Objectives Progress Operating Programs Highlights Continued Steady Economic Growth Introduction: 2016-17 Year Ahead 3 Entering second year of 2015-17 Financial Plan with General Fund balance above policy reserve Enterprise Funds Working Capital above policy level Path of Long-Term Sustainability and Fiscal Responsibility Introduction: 2016-17 Year Ahead 4 Strengthen support functions infrastructure Provide Services expected by Community in most efficient way Proactively allocate funds to reduce long-term costs and invest in capital and workforce Recommendations 5 Receive and Discuss the 2016-17 Supplemental Budget •General Fund Five Year Forecast •Update on Major City Goals and Other Important Objectives Adopt Resolution establishing City’s Gann appropriation spending limit Adopt Resolution approving 2015-17 Financial Plan Supplement and appropriate 2016-17 Budget for all funds Presentation Roadmap 6 City’s Budget Process Proposed Budget Changes Financial Plan Policies Financial Condition Significant Changes to Operating Programs New Capital Improvement Projects Major City Goals/Other Important Objectives City’s Budget Process Two year financial planning 2 Year Financial Plan •Council adopts a two- year Financial Plan. •Council receives reports every 6 months on its adopted budgets. Supplemental Budget •2016-17 fiscal year. •Follows adopted Council priorities. •Proposes adjustments consistent with adopted policies. 7 •The City’s budget is a collaborative process •Department Heads, Analysts, Fiscal Officers, Program Managers •Capital Improvement Plan Committee •Budget Review Team Committee •Revenue Oversight Committee Supplemental Budget City’s Budget Process 8 •Financial Responsibility Philosophy (Adopted July 1, 2014) •Informed Decision-making •Shared responsibility •Increased Transparency •Aligned Investments •Diversified and Aligned Revenue Sources •Long-Term Unfunded Liabilities •Continued Efficiency and Effectiveness Fiscal Policy 9 Financial Plan Policies Major City Goals •Open Space Preservation •Multi-Modal Transportation •Housing Other Important Objectives •Neighborhood Wellness •Laguna Lake Restoration •Fiscal Sustainability and Responsibility •Downtown 10 Financial Plan Policies •Unfunded Pension Liability •Other Post Employment Benefits (OPEB) •Roads Infrastructure; and •Equipment Replacement Funds Council Policy Adopted February 17, 2015: “Addressing the Long Term Costs” Financial Plan Policies 11 •2014-15 audited Year-End Fund Balance Results: Mid-Year Five Year Forecast •$4.9 M available in Unassigned General Fund Balance for one- time expenditure allocations •Additional $281,935 available in Local Revenue Measure Sub- Fund Balance General Fund Balance 12 Financial Condition •The 2016-17 Supplemental Budget is based on updated Revenue Assumptions •Reviewed and Updated Salary Models and Expenditures Supplemental Budget 13 Financial Condition •National Economy: 2016-17 Forecasts predict 2 to 2.5 % healthy GDP growth •California Economy: positive growth in Sales Tax and job creation •San Luis Obispo: •Community development strong •Retain & attract technology companies •Downtown thriving Economic Outlook 14 Financial Condition •Sales Tax: steady growth •Property Tax: better than expected •TOT: meets and exceeds expectations •Development Review: continued growth Five Year Forecast 15 Financial Condition 16 Total Transient Occupancy Tax 17 18 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Fire Budget Fire Actual Planning Budget Planning Actual Engineering Budget Engineering Actual Building Budget Building Actual Budgeted Development Services Fee Revenue Verses Actual City’s Budget Process: •Significant Operating Program Changes: •Change in Operations •Over $7,500 •New and Enhanced Capital Improvement Projects Supplemental Budget 19 Proposed Budget Changes City’s Budget Process: •REOC Advisory Body •Met on April 25, 2016 •Reviewed staff recommendations •Consistent with Local Revenue Measure Revenue Enhancement Oversight Committee 20 Proposed Budget Changes 21 4,948,895 1,093,598 6,042,493 948,252 948,252 TOTAL SOURCES 6,990,745 2014-15 Fund Balance 2015-16 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONE-TIME ALLOCATIONS 2016-17 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONGOING ALLOCATION GENERAL FUND * Excludes Local Revenue Measure SOURCES RECOMMENDED FOR ALLOCATION Proposed Budget Changes 22 750,000 250,000 200,000 170,000 30,000 2,832,000 270,000 900,000 29,944 25,000 664,656 145,400 TOTAL CHANGE IN ONE-TIME USES 6,267,000 Essential Safety Gear for Police Officers CIP Infrastructure Designation Development Services Space Lease Resources to Address Stormwater Mandates Development Services Enhanced Sidewalk Maintenance & Intersection Replacement Enhanced Tree Maintenance Organizational Efficiency & Effectiveness Facilities Master Plan RECOMMENDED CHANGES IN USES Unfunded Liability Prepayment (CalPERS) Unfunded Liablity Prepayment (OPEB) California & Taft Roundabout Proposed Budget Changes 23 4,948,895 750,000 250,000 200,000 170,000 30,000 2,832,000 270,000 446,895 Roads Infrastructure and Equipment Replacement Funds 3,948,895 4,948,895TOTAL ALLOCATED TO ADRESS LONG-TERM COSTS PRIORITIES California & Taft Roundabout Enhanced Sidewalk Maintenance & Intersection Replacements Enhanced Tree Maintenance Organizational Efficiency & Effectiveness Facilities Master Plan CIP Infrastructure Designation RECOMMENDED CHANGES IN USES Unfunded Liability Prepayment (CalPERS) Unfunded Liablity Prepayment (OPEB) GENERAL FUND * Excludes Local Revenue Measure SOURCES RECOMMENDED FOR ALLOCATION 2014-15 Fund Balance 24 472,545 125,000 0 64,200 60,000 2,000 TOTAL CHANGE IN ONGOING USES 723,745 Insurance Savings Reallocation & Retention Cost Neutral Fire Fighter Over-Hire Aquatics Temporary Staffing @SLO Swimcenter Resources to Address Stormwater Mandates Organizational Efficiency & Effectiveness Leadership & Learning Academy 25 281,935 264,000 545,935 435,065 435,065 TOTAL SOURCES 981,000 LOCAL MEASURE REVENUE SUB-FUND 2016-17 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONGOING ALLOCATION SOURCES RECOMMENDED FOR ALLOCATION 2014-15 Fund Balance 2015-16 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONE-TIME ALLOCATIONS 26 Enhanced Park Major Maintenance 220,000 Enhanced Tree Maintenance 185,000 Enhanced Sidewalk Maintenance & Intersection Replacements 450,000 Enahnced Open Space Mintenance 100,000 Pulse Point Software 18,000 TOTAL CHANGE IN ONE-TIME USES 973,000 8,000 TOTAL CHANGE IN ONGOING USES 8,000 TOTAL RECOMMENDED USES 981,000 Pulse Point Software RECOMMENDED CHANGES IN USES City’s Budget Process: •Aligned with most recent revenue and expenditure trends •Based on Long-Term Financial Planning •Optimizes allocation of available resources by immediately applying toward services •Focused on priorities Prudent Allocation of Resources 30 Budget Allocation Summary 31 32 SIGNIFICANT OPERATING PROGRAM CHANGES Pulse Point Software Operating Change: Ongoing $8,000, One-Time $18,000 Local Revenue Measure Increased bystander CPR participation Improved survival rates for cardiac arrest victims Free smartphone application download Empowering everyday citizens to provide life-saving actions 34 Fire Fighter Over-Hire Operating Change: Cost Neutral $0 Maintains constant staffing level while reducing overtime Enhances capacity to address vacancies and recruitment Cost Neutral Over-Hire 3 Firefighters Offset by OT reduction *Subject to Meet and Confer requirements 95% of all 24-hour shifts require at least one off-duty Firefighter to work overtime 35 Temporary Staffing @SLO Swim Center Operating Change: Ongoing $64,200 General Fund Increased Safety & Retention Trained Staff = Reduced Risk Recommended Best Practices American Red Cross American Lifeguard Association Retain Expertise Meet minimum recommended staffing Staffing on pool deck – directly tied to the level of safety 36 Operating Change: Organizational Effectiveness & Efficiency Ongoing $472,545 One-Time $2,832,000 General Fund Best management practices Streamline business policy and practices Utilize Technology: alternative delivery method Future cost containment Addresses Financial Responsibility Philosophy Fiscal Sustainability & Responsibility Other Important Objective Long Term Costs Reductions Priorities Government Finance Officers Association recommendation (GFOA) 37 Change the way we do business 40 41 42 Leadership & Learning Operating Change: Ongoing $125,000 General Fund Invest in Workforce Enhanced Workforce Retention Attract Talent Centre for Organizational Effectiveness: Public sector competencies Preparation for supervisory roles Program management Leadership development 20% of Academy graduates have already promoted or are acting in higher level roles in the organization 45 Safety Gear Operating Change: One-Time $29,944 General Fund Required gear to safely provide police services Replace Past Expiration Equipment: 45 Helmets 2 Ballistic Shields 46 Essential Safety Gear Replacement Tourism Program Support Operating Change: Cost Neutral $0 TBID Enhance program effectiveness Increase Strategic Planning Hire Tourism Coordinator (FTE) Operations & Planning Cost offset by reduction in Contract Services 47 Recommended by Tourism Business Improvement Board Maintain established level of service Address increasing volume of highly complex permits Match Resources to Services Requested Improve Customer Satisfaction Add 4 Contract Positons Contract Services 48 Community Development Development Services: Staffing Operating Change: One-Time $664,656 General Fund/Development Services Over- Realized Revenue Increase Customer Satisfaction: One-Stop Shop Provide Adequate Workspace for Existing Staff Accommodate Temporary Staff Allow time to design permanent solution 3-Year Lease at 999 Monterey Implement One-Stop Shop at 919 Palm 49 Community Development Development Services: Office Space Operating Change: One-Time $145,400 General Fund/Development Services Over-Realized Revenue Municipal Stormwater Program Operating Change: Ongoing $60,000, One-Time $25,000 General Fund Maintain compliance Improved water quality and environmental protection Support new Stormwater Program elements 50 Program mandated by State Risk Management Program Operating Change: Cost Neutral $0 General Fund Conduct: ADA Assessment and Transition Plan Risk Management Program Audit Safety Policies Update Apply Worker’s Compensation & Liability Insurance Savings to fund key Risk Management Priorities Reduce Long-Term Costs 53 CAPITAL IMPROVEMENT PROJECTS Facilities Master Plan $270,000 General Fund Fiscal Sustainability & Responsibility Project Accelerated from 2017-18 Augment to include Police and Community Development Services Space Needs Assess 221,000 Square Feet of Buildings 55 California Taft Roundabout $200,000 General Fund Multimodal Transportation Major City Goal Complete Study and Design 56 Enhanced Park Major Maintenance $220,000 Local Revenue Measure Parks & Recreation/Senior Programs and Facilities Backstop at Sinsheimer park ($90,000) Meadow Park Bridge and King Street Bridge ($130,000) 57 Enhanced Tree Maintenance $185,000 Local Revenue Measure, $30,000 General Fund Bicycle and Pedestrian Improvements 58 Urban forest is losing street trees due to age and drought Approximately 30 trees lost in each recent year This project to replace 40 trees 139 Large Blue Gum Eucalyptus Trees Pruning Replace failing Canary Island Date Palms on California Street Enhanced Street & Sidewalk Maintenance $170,000 General Fund, $450,000 Local Revenue Measure Bicycle and Pedestrian Improvements Intersection Accessibility Improvements ($520,000) Toro & Palm Palm & Johnson Nipomo & Dana Sidewalk Maintenance ($100,000) 59 Enhanced Open Space Maintenance $100,000 Local Revenue Measure Enhanced Open Space Maintenance •Additional resources for fuel reduction in wildland-urban interfaces from contract labor and grazing operations. •Focused removal of invasive species. 60 Bike Bridge at Phillips Lane $3,244,000 Grant Grant awarded Project adopted with 2015-16 Financial Plan Capital Improvement Program 61 Status of Major City Goals & Other Important Objectives 64 Open Space Preservation 40% COMPLETE 65 65 Open Space Preservation •The Natural Resources Roundtable beginning to formulate its vision for the future. •Rangers implementing adopted Open Space Maintenance Plan. •3 separate land conservation opportunities in progress. •Wetland meadow and riparian planting/invasive species control at Calle Joaquin Agricultural 66 66 Multi-Modal Transportation 30% Complete 67 Multi-Modal Transportation The Fixlini Bike Boulevard diverter installation is complete. Chorro St. Neighborhood Traffic Management Broad St. Bike Blvd. underway The Active Transportation Manager has been hired. Chorro Traffic Circle Broad St. Bike Blvd. Neighborhood Meeting 68 Housing 50% COMPLETE 69 Housing Over $155,000 in affordable housing fund awards made Specific projects underway: Avila Ranch, Sun Luis Ranch, Froom Ranch (projected 1,500 new units) Building permits issued for 465 new units 70 71 Other Important Objectives Highlights •Staff Hired and inspections begun. •2 neighborhood grants awarded. Neighborhood Wellness •Work on design/engineering and fiscal analysis ongoing with summer presentations anticipated. Laguna Lake Restoration •GFOA analysis complete results presented and proposed budget for 2016-17 begins implementation. Fiscal Sustainability •Downtown Concept & Mission Plaza projects underway. •Construction and public safety and infrastructure enhancements ongoing. Downtown 71 Major City Goals and OIOs The next review of the 2015-17 Major City Goals and Other Important Objectives will occur at the 2016-17 Mid-Year Budget. Individual items requiring policy direction and/or Council approval will continue to be brought to Council for consideration and direction. 72 73 Recommendation 1.Adopt a resolution (Attachment A) establishing the City’s appropriation limit for 2016-17 in compliance with Article XIII B of the State Constitution, Gann Spending Limitation Initiative; and 1.Receive and discuss the 2015-17 Financial Plan Supplemental Budget Report, including Major City Goals and Other Important Objectives progress report and the Five Year Forecast update; and 1.Adopt resolution (Attachment B) approving the 2015-17 Financial Plan Supplement and 2016-17 Budget. 75 4,948,895 1,093,598 6,042,493 948,252 948,252 TOTAL SOURCES 6,990,745 2014-15 Fund Balance 2015-16 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONE-TIME ALLOCATIONS 2016-17 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONGOING ALLOCATION GENERAL FUND * Excludes Local Revenue Measure SOURCES RECOMMENDED FOR ALLOCATION Proposed Budget Changes 76 750,000 250,000 200,000 170,000 30,000 2,832,000 270,000 900,000 29,944 25,000 664,656 145,400 TOTAL CHANGE IN ONE-TIME USES 6,267,000 Essential Safety Gear for Police Officers CIP Infrastructure Designation Development Services Space Lease Resources to Address Stormwater Mandates Development Services Enhanced Sidewalk Maintenance & Intersection Replacement Enhanced Tree Maintenance Organizational Efficiency & Effectiveness Facilities Master Plan RECOMMENDED CHANGES IN USES Unfunded Liability Prepayment (CalPERS) Unfunded Liablity Prepayment (OPEB) California & Taft Roundabout Proposed Budget Changes 77 4,948,895 750,000 250,000 200,000 170,000 30,000 2,832,000 270,000 446,895 Roads Infrastructure and Equipment Replacement Funds 3,948,895 4,948,895TOTAL ALLOCATED TO ADRESS LONG-TERM COSTS PRIORITIES California & Taft Roundabout Enhanced Sidewalk Maintenance & Intersection Replacements Enhanced Tree Maintenance Organizational Efficiency & Effectiveness Facilities Master Plan CIP Infrastructure Designation RECOMMENDED CHANGES IN USES Unfunded Liability Prepayment (CalPERS) Unfunded Liablity Prepayment (OPEB) GENERAL FUND * Excludes Local Revenue Measure SOURCES RECOMMENDED FOR ALLOCATION 2014-15 Fund Balance 78 472,545 125,000 0 64,200 60,000 2,000 TOTAL CHANGE IN ONGOING USES 723,745 Insurance Savings Reallocation & Retention Cost Neutral Fire Fighter Over-Hire Aquatics Temporary Staffing @SLO Swimcenter Resources to Address Stormwater Mandates Organizational Efficiency & Effectiveness Leadership & Learning Academy 79 281,935 264,000 545,935 435,065 435,065 TOTAL SOURCES 981,000 LOCAL MEASURE REVENUE SUB-FUND 2016-17 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONGOING ALLOCATION SOURCES RECOMMENDED FOR ALLOCATION 2014-15 Fund Balance 2015-16 Revenue Increase TOTAL SOURCES AVAILABLE FOR ONE-TIME ALLOCATIONS 80 Enhanced Park Major Maintenance 220,000 Enhanced Tree Maintenance 185,000 Enhanced Sidewalk Maintenance & Intersection Replacements 450,000 Enahnced Open Space Mintenance 100,000 Pulse Point Software 18,000 TOTAL CHANGE IN ONE-TIME USES 973,000 8,000 TOTAL CHANGE IN ONGOING USES 8,000 TOTAL RECOMMENDED USES 981,000 Pulse Point Software RECOMMENDED CHANGES IN USES 81 Recommendation 1.Adopt a resolution (Attachment A) establishing the City’s appropriation limit for 2016-17 in compliance with Article XIII B of the State Constitution, Gann Spending Limitation Initiative; and 1.Receive and discuss the 2015-17 Financial Plan Supplemental Budget Report, including Major City Goals and Other Important Objectives progress report and the Five Year Forecast update; and 1.Adopt resolution (Attachment B) approving the 2015-17 Financial Plan Supplement and 2016-17 Budget.