HomeMy WebLinkAbout11-16-2016 REOC Agenda Packet
City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis
Obispo
Agenda
Revenue Enhancement Oversight Commission
Wednesday, November 16, 2016
5:30 pm
REGULAR MEETING
Council Hearing Room
990 Palm Street
San Luis Obispo, CA
CALL TO ORDER:
ROLL CALL: Jeri Carroll, Chris Coates, Ken Kienow, Michael Multari, and
Ken Tasseff
MINUTES: Minutes of April 26, 2016. Approve or amend.
OATHS OF OFFICE
1. Administer the Oaths of Office to newly-appointed Commissioners Ken
Tasseff and Chris Coates. (Kevin Christian)
PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
At this time, people may address the Commission about items not on the agenda.
Persons wishing to speak should come forward and state their name and city of
residence. Comments are limited to five minutes per person. Items raised at this time
are generally referred to the staff and, if action by the Commission is necessary, may
be scheduled for a future meeting.
BUSINESS ITEMS
2. Review Purpose of the Revenue Enhancement Oversight Commission and
Elect Officers. Review the purpose and scope of the Revenue Enhancement
Oversight Commission and elect a Chairperson and Vice-Chairperson to serve
for a one-year term. (Greg Hermann)
3. 2015-16 Local Revenue Measure Year-end Expenditures. Receive a report
and review unaudited operating and capital expenditures of local half -percent
sales tax revenue in the last fiscal year. (Greg Hermann)
4. 2015-16 Annual Community Report. Discuss concepts and provide direction for
the 2015-16 Annual Community Report and appoint two Commissioners to serve
on a subcommittee to assist in the development of the report. (Greg Hermann)
San Luis Obispo - REOC Agenda of November 16, 2016 Page 2
5. 2017-19 Financial Plan Process and Revenue Enhancement Oversight
Commission Meeting Schedule. Review the process to develop the 2017-19
Financial Plan and discuss recommended clarifications and changes to the
Revenue Enhancement Oversight Commission meeting schedule. (Greg
Hermann)
COMMENT & DISCUSSION
6. Staff Communications
7. Commission Communications
ADJOURNMENT
Minutes (DRAFT)
Citizen’s Revenue Enhancement Oversight Commission
Tuesday, April 26, 2016 - 5:30 p.m.
City Council Hearing Room, 990 Palm Street
San Luis Obispo, California
CALL TO ORDER
A regular meeting of the Citizens’ Revenue Enhancement Oversight Commission (REOC) was
called to order on Tuesday April 26, 2016, at 5:30 p.m. in the Council Hearing Room at 990 Palm
Street, San Luis Obispo, California, by Chair Kardel.
ROLL CALL
Commission Members
Present: Commission Members Jeri Carroll (departed at 6:44), Michael Multari,
Vice Chair Ken Kienow, and Chair Amy Kardel
Absent: One Seat Vacant
Staff Present: Derek Johnson, Assistant City Manager and Interim Finance Director; Greg
Hermann Principal Analyst; and Kevin Christian, Recording Secretary.
MINUTES
CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION
MINUTES OF MARCH 10, 2016
ACTION: MOTION BY COMMISSIONER MULTARI, SECOND BY COMMISSIONER
KIENOW, CARRIED 4-0, to approve the Citizens’ Revenue Enhancement Oversight
Commission meeting minutes of March 10, 2016.
PUBLIC COMMENT
San Luis Obispo residents Allan Cooper, David Brodie, Cheryl McLean and Mila Vujovich-
LaBarre spoke in favor of creating a public park at 71 Palomar Avenue.
To avoid possible conflict of interest issues, Assistant City Manager Johnson excused himself
from the meeting during Commission discussion on 71 Palomar Avenue. The Commission
determined that the park proposal would fit with Business Item 1 and therefore invited the
public to comment during that item.
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Revenue Enhancement Oversight Commission Minutes – April 26, 2016 Page 2
BUSINESS ITEMS
1. FY 2016-17 LOCAL REVENUE MEASURE FUNDING RECOMMENDATIONS FOR
ADDITIONAL REVENUE.
Principal Analyst Hermann provided a PowerPoint presentation outlining the 2016-2017
Supplemental Budget, summarizing the oversite role of the Commission and the Local
Revenue Ballot (Measure G), noting that there is $999,389 in additional revenue generated by
the fund and provided an overview of six major projects proposed for funding, including: 1)
PulsePoint, 2) Enhanced Tree Maintenance, 3) Enhanced Sidewalk Replacement, 4) Enhanced
Park Major Maintenance, 5) Enhanced Street Reconstruction and Resurfacing and 6) Enhanced
Open Space Maintenance.
PUBLIC COMMENT
The following residents all spoke in favor of their proposal that the city acquire 71 Palomar
Avenue for use as a park and community facility: Allan Cooper, David Brodie, Cheryl McLean
and Mila Vujovich-LaBarre.
---End of Public Comment---
The Commission concurred that the funding nature of the request was outside the
Commission’s purview of oversight, and it was suggested that the public address the City
Council with the request.
Commission discussion followed regarding the suitability of the proposed projects for the
Local Revenue funding source. There was consensus that the proposed removal of the
California Street Palm Trees component of the Enhanced Tree Maintenance project was not
appropriate for funding.
ACTION: MOTION BY COMMISSIONER MULTARI, SECOND BY CHAIR KARDEL,
CARRIED 3-0-1 (Carroll absent), that based on the staff report, the amount of revenue
available from the Local Revenue Enhancement funds in the supplemental budget for 2016-17
is $999,389; and that, after consideration of the Council adopted major city goals, and public
input at the annual oversight meeting, as well as other testimony and written correspondence,
the REOC finds that the recommended expenditures, as described in Attachment A of the staff
report, are consistent with the purpose of the local revenue measure and are appropriate uses
of the revenue generated by the essential services measure for inclusion in the 2016-17
supplemental budget, with the exception of the removal of the California Street Palm Trees
component of the Enhanced Urban Forest Maintenance and Restoration project.
4
Revenue Enhancement Oversight Commission Minutes – April 26, 2016 Page 3
COMMENT AND DISCUSSION
2. Staff Communications
Assistant City Manager Johnson updated the Commission on the Government Finance Officers
Association (GFOA) recommendation to reorganize the City Finance Department and invest
in a new finance information system. Additionally, he reported that the City has launched the
recruitment for a new Finance Director.
Principal Analyst Hermann reported that there will be a realignment of the recruitment process
for the REOC and outlined the process for filling vacancies.
Service awards from the City’s Advisory Body recognition dinner were presented to Chair
Kardel and Commissioner Kienow.
Principal Analyst Hermann stated that the next REOC meeting is scheduled for next Fall. A
date specific will be set and communicated later.
3. Commission Communications
Commissioner Multari thanked Principal Analyst Hermann for his work, thanked Chair Kardel
for her service and wished her well upon her departure from the Commission, and expressed
gratitude for Commissioner Kienow for reapplying for the Commission.
ADJOURNMENT
ACTION: MOTION BY COMMISSIONER KIENOW, SECOND BY COMMISSIONER
MULTARI, CARRIED 3-0-1 (Carroll absent) , to adjourn the meeting at 7:00 p.m.
Respectfully Submitted,
Kevin Christian
5
Revenue Enhancement Oversight Commission
November 16, 2016
FROM: Derek Johnson, Assistant City Manager
Greg Hermann, Principal Analyst
SUBJECT: REVIEW PURPOSE OF THE REVENUE ENHANCEMENT OVERSIGHT
COMMISSION AND ELECT OFFICERS
RECOMMENDATION
1. Review the purpose and scope of the Revenue Enhancement Oversight Commission
(REOC); and
2. Elect a Chairperson and Vice-Chairperson to serve for a one-year term.
DISCUSSION
Background
On July 15th, 2014, Council adopted an ordinance establishing the Citizens’ Revenue
Enhancement Oversight Commission (REOC), to review the half-percent sales tax revenues and
expenditures, report on the City’s stewardship of this general purpose tax, and provide
recommendations directly to the City Council regarding expenditures of these tax revenues as an
integral part of the budget process. The establishment of the REOC became effective following
the passage of an extension to the Essential Services Transaction (Sales) and Use Tax
(Attachment 1, REOC Ordinance) during the November general election. The REOC is to
consist of five members who must be residents of the City.
The November 4th, 2014 general election results indicate that 70 percent of voters in the City of
San Luis Obispo approved Ballot Measure G that stated:
To protect and maintain essential services and facilities – such as open space preservation; bike
lanes and sidewalks; public safety; neighborhood street paving and code enforcement; flood
protection; senior programs; and other vital services and capital improvement projects – shall the
City’s Municipal Code be amended to extend the current one-half percent local sales tax for
eight years, with independent annual audits, public goal-setting and budgeting, and a Citizens’
Oversight Commission?
Following certification of the election results, the Council and the People of the City of San Luis
Obispo adopted an ordinance amending Chapter 3.15 of the Municipal Code to extend the
existing Essential Services Transactions (Sales) and Use Tax (Attachment 2, Sales Tax
Ordinance). This ordinance details the full text of amended Chapter 3.15, which includes specific
citizen oversight and fiscal accountability provisions:
A. Revenue Enhancement Oversight Commission. A citizen's commission will be established
to provide transparency and maximize City accountability. The Commission will be
responsible for reviewing and making budget recommendations directly to the City Council
6
City of San Luis Obispo, Title, Subtitle
Purpose and Election of Officers Page 2
regarding expenditures from the essential services transactions (sales) and use tax, and
reporting annually to the community on the City's use of these tax revenues.
B. Accounting and Tracking Expenditures. The funds collected through the City of San Luis
Obispo essential services transactions (sales) and use tax ordinance shall be accounted for
and tracked by the City Treasurer separately to facilitate citizen oversight.
C. Independent Annual Financial Audit. The amount generated by this general purpose
revenue source and how it was used shall be included in the annual audit of the city's
financial operations by an independent certified public accountant.
D. Integration of the Use of Funds into the City's Budget and Goal-Setting Process. The
estimated revenue and proposed use of funds generated by this measure shall be an integral
part of the city's budget and goal- setting process, and significant opportunities will be
provided for meaningful participation by citizens in determining priority uses of these funds.
E. Annual Community Report. A written report shall be reviewed at a public hearing by the
Revenue Enhancement Oversight Commission, and a summary will be provided annually to
every household in the community detailing how much revenue is being generated by the
measure and how funds are being spent.
F. Annual Citizen Oversight Meeting. An invitation will be extended each year to the entire
community inviting them to participate in a forum to review and discuss the use of the
revenue generated by this measure. City staff will also be available to meet with any group
that requests a specific briefing with their members to discuss and answer questions about the
revenues generated by the measure and their uses.
Purpose and Scope of the REOC
The codified charge of the REOC is to review, report and provide recommendations. The REOC
is an advisory body to the Council that will provide important citizen oversight of local sales tax
revenues and expenditures. The REOC will not be making final decisions on City spending.
REOC meetings will be open to the public and serve as a venue for citizen engagement on local
sales tax revenues and expenditures. The REOC will also aid in community education and
outreach about how much local sales tax is received and where that revenue is being expended.
REOC Bylaws
The REOC bylaws contain the Commission’s purpose, and policies on conduct, membership,
terms, officers, meetings, attendance, quorum, voting, subcommittees, public records and other
rules and procedures (Attachment 1, REOC Bylaws).
These bylaws state that the REOC shall select a Chairperson and Vice-Chairperson from among
its members to serve for a one-year term.
ATTACHMENTS
1. REOC Bylaws
7
Citizens’ Revenue Enhancement Oversight Commission
The Citizens’ Revenue Enhancement Oversight Commission (REOC) has five members.
Members must be residents and registered voters of the City. When recruiting members, the
City seeks members that have experience with finance, budgeting, or municipal accounting,
though this is not a requirement of membership.
ARTICLE 1. MEETINGS
A. The REOC shall meet a minimum of four times per year to conduct its business.
B. REOC regular meetings will follow the diagram below and be integrated into the City’s
budget processes for the two‐year financial plan, fiscal year‐end, and financial plan
supplement. Meeting dates may change from year to year according to the actual
budget schedule.
Attachment 1
8
REOC Bylaws Page 2
C. Agenda items shall be completed by 9:00 p.m. unless the consent of a majority of
commissioners agree to extend the meeting.
D. Regular meetings shall be held in the Council Hearing Room, City Hall, 990 Palm Street,
San Luis Obispo, California.
E. Special meetings may be called by a majority of the REOC, or by City staff in consultation
with the Chairperson, if additional meetings are necessary to accomplish the purpose
and duties of the Commission.
F. In the event that the REOC desires to hold all or any portion of a regular meeting at a
place other than the Council Hearing Room, then the place of such meeting shall be
posted on at the doors of the Council Hearing Room prior to the time designated for the
meeting in accordance with law.
ARTICLE 2. ELECTION OF OFFICERS
A. The commission shall select a Chairperson and Vice‐Chairperson from among its
members to serve for a one‐year term beginning with the first meeting following the
start of each fiscal year (July 1).
B. Commissioners shall serve as Chairperson or Vice‐Chairperson at the discretion of the
Commission.
C. The Chairperson shall preside at all meetings of the commission. The Vice‐Chairperson is
Chairperson in the absence of the Chairperson or in case of inability of the Chairperson
to act.
ARTICLE 3. CONDUCT OF MEETINGS
A. Commissioners should address questions through the chairperson.
B. Members of the audience should address commissioners or other persons present
through the chairperson.
C. Procedure for reviewing public hearing items:
After roll call the Chairperson shall announce to the public the procedures to be followed to
consider the items listed on the agenda and then proceed as follows:
1.The Chairperson shall introduce the items and ask for oral staff reports, as
appropriate.
2.The staff report previously submitted to the REOC shall be placed into the record
with all communications received regarding the item. Staff reports shall be
submitted for all public hearing items in a form acceptable to the Commission.
3.Members of the public wishing to speak on the topic of the agenda item shall be
invited to make a presentation. Public comment shall be accepted for agenda
items that are listed as presentations, business items, or public hearings.
4.Following public testimony on an agenda item, the public hearing or public
testimony portion of the meeting shall be closed to the public and discussion
confined to members of the commission; provided that the commission may
reopen the public hearing or invite additional testimony at any time prior to a
decision on an item on an affirmative vote of the majority of those members
present.
Attachment 1
9
REOC Bylaws Page 3
5.The Commission, upon formal motion, shall take action on the item or
recommendation.
ARTICLE 4. QUORUM
A. Three members of the commission constitutes a quorum for the transaction of business.
B. No action of the commission shall become effective without receiving the affirmative
vote of a majority of the members present.
ARTICLE 5. VOTING
A. Except as otherwise provided in the San Luis Obispo Municipal Code and state law, no
motion or any other action shall be passed or become effective without receiving the
affirmative vote of at least a majority of members present.
B. Failure to receive such an affirmative vote shall result in failure or denial, as appropriate,
of the motion or other action.
C. Except as allowed under the Political Reform Action of 1974, any member abstaining
due to a declared conflict of interest shall not participate in the discussion of the items
or otherwise influence or attempt to influence in any manner the decision on the item.
D. All members, when present, must vote except when refraining from participating due to
actual or potential conflict of interest.
E. Commissioners not supporting a motion for action shall summarize the reason for their
vote.
ARTICLE 6. PUBLIC RECORDS
A. Records of all public hearings shall be made available to the public in the office of the
City Clerk.
B. Secretary – Duties: The secretary shall be a representative of the City Clerk’s Office, and
shall keep minutes of each meeting and shall record the official actions taken. The
records of all proceedings shall be available to the council and to the public.
ARTICLE 7. ATTENDANCE
A. Any member of the REOC who fails, for any reason, to attend three (3) regular,
adjourned regular, or specially‐scheduled meetings, within any 12 month period, shall
be reviewed by the Chairperson for possible referral to the City Council.
ARTICLE 8. FILLING VACANCIES AND REMOVAL OF MEMBERS.
A. Vacancies shall be filled for unexpired terms. The council, by majority action, may
remove any commissioner as provided in the City Charter.
ARTICLE 9. RULES, REGULATIONS AND PROCEDURES.
A. The Commission may adopt rules, regulations and procedures as required for the
transaction of its business. These rules shall become effective upon approval of the
council.
Attachment 1
10
Revenue Enhancement Oversight Commission
November 16, 2016
Revenue Enhancement Oversight Commission
November 16, 2016
FROM: Derek Johnson, Assistant City Manager
Greg Hermann, Principal Analyst
SUBJECT: 2015-16 LOCAL REVENUE MEASURE YEAR-END EXPENDITURES
RECOMMENDATION
Receive a report and review unaudited operating and capital expenditures of local half-percent
sales tax revenue in the last fiscal year.
DISCUSSION
Local Revenue Measure Uses
The Local Revenue Measure Summary Schedule for the Fiscal Year (FY) 2015-16 lists unaudited
expenditures for operating and capital project costs (Attachment 1). Expenditures are broken into
the following categories: 1) Open Space Preservation, 2) Bicycle and Pedestrain Improvements,
3) Traffic Congestion Relief/Safety Improvements, 4) Public Safety, 5) Neighborhood Street
Paving, 6) Code Enforcement, 7) Flood Protection, and 8) Parks and Recreation/Senior Programs
and Facilities.
Actual operating expenditures for FY 2015-16 were approximately $2.1M and capital expenditures
were about $2.8M, totaling approximately $4.9M. Expenditures for the Local Revenue Measure
in the 2015-17 Financial Plan were budgeted to account for approximately 30 percent operating
12%
5%4%
23%
24%
5%
13%
14%
FY 2015‐16 Local Revenue Measure Uses ($4.9M)
1. Open Space Preservation
2. Bicycle and Pedestrian Improvements
3. Traffic Congestion Relief / Safety
Improvements
4. Public Safety
5. Neighborhood Street Paving
6. Code Enforcement
7. Flood Protection
8. Parks and Recreation/Senior
Programs and Facilities
11
2015-16 Local Revenue Expenditures Page 2
and 70 percent capital costs. In the FY 2015-16, the actual uses were 43 percent operating and 57
percent capital expenditures. This is due to multi-year nature of capital improvement projects and
some savings from projects that were completed under budget. Expenditues are expected to
rebalance in the second year of the 2015-17 Financial Plan.
1. Operating Uses ($2.1M)
92 percent of budgeted Local Revenue Measure operating program funds were expended in FY
2015-16. The 8 percent balance remaining was due to salary variances and hiring gaps for
individual positions. Any unexpended funds remain in the Local Revenue Measure fund balance
for redistribution. The largest use of local revenue measure funding for operating costs was for
Public Safety. Examples of these costs were salaries for the Downtown Patrol Officers.
2. Capital Uses ($2.8M)
40 percent of available Local Revenue Measure capital project funds were expended in FY 2015-
16. Available funds are a combination of what was budgeted in FY 15-16 and what was carried
over from past fiscal years. All of the funds available were not spent due to savings from projects
that were completed under budget and projects that span multiple years. In addition, project phases
don’t always align with fiscal years, and project schedules are subject to variables that cause
delays. Budgeted funds for capital projects carry over year to year until the project is completed.
The total amount of Local Revenue Measure funding that carried forward to FY 2016-17 is
approximately $3.6M.
Specific details on all of the capital projects are included in Attachment 1. Any funding remaining
once projects are completed will be transferred into a Local Revenue Measure Completed Projects
account. This funding could be used for other approved Local Revenue Measure projects that end
up costing more than what was budgeted (subject to City Manager approval), or be reprogrammed
6%
8%
5%
34%
8%
11%
25%
4%
2015‐16 Local Revenue Measure Operating Uses ($2.1M)
1. Open Space Preservation
2. Bicycle and Pedestrian Improvements
3. Traffic Congestion Relief / Safety
Improvements
4. Public Safety
5. Neighborhood Street Paving
6. Code Enforcement
7. Flood Protection
8. Parks and Recreation/Senior Programs
and Facilities
12
2015-16 Local Revenue Expenditures Page 3
to other capital projects that meet Local Revenue Measure priorities subject to Revenue
Enhancement Oversight Commission (REOC) and City Council approval during the budget
process.
The largest capital expenditures funded by the Local Revenue Measure in FY 2015-16 were for
Neighborhood Street Paving, specifically for street reconstruction and resurfacing on Johnson
Ave. and Osos Street.
3. Net Available for Future Appropriations
There is currently no net balance of Local Revenue Measure funding available for future uses at
this time due to decreases in expected revenues. All existing funds for the Local Revenue Measure
have been carried over to or are already budgeted for the current fiscal year.
Local Revenue Measure Revenues
Unaudited revenues from the local half-percent sales tax totaled $7.1M in FY 2015-16. This is a
one percent decrease from last fiscal year and six percent decrease from the budgeted revenues.
The revenue decrease is due to a variety of factors including falling gas prices and a general
reduction revenues from what wasforecasted and budgeted. Staff is working to refine future
revenue forecasts based on current data for both the 2016-2017 Mid Year Budget and 2017-2019
Financial Plan.
FY 2015-16 Budgeted Revenues (per 2015-17
Financial Plan Forecast)
$7,447,054
FY 2015-16 Year End Revenues $7,056,217
16%
3%
3%
15%
36%
0%
5%
22%
FY 2015‐16 Local Revenue Measure Capital Uses ($2.8M)
1. Open Space Preservation
2. Bicycle and Pedestrian Improvements
3. Traffic Congestion Relief / Safety
Improvements
4. Public Safety
5. Neighborhood Street Paving
6. Code Enforcement
7. Flood Protection
8. Parks and Recreation/Senior Programs
and Facilities
13
2015-16 Local Revenue Expenditures Page 4
FY 2016-17 revenue from the local revenue measure is forecasted to be $7,417,000. This forecast
of revenues will change over time. The next updated forecast will be presented to Council during
the 2017-19 Financial Plan process in December 2016.
ATTACHMENT
1. Fiscal Year 2015-16 Local Revenue Measure Funding Summary Schedule
14
2015-16 (budget)2015-16 (unaudited actual)2016-17 (budget + projected carryover) 2015-16 (budget) 2015-16 (unudited actual) 2016-17 (budget + projected carryover) 1 Laguna Lake Dredging and Sediment Management 450,000 283,632 166,368 450,000 LL 60% Draft Alternatives were provided to Council and the preferred project size was selected. The project is now entering the design phase. 2 Open Space Acquisition 250,000 - 500,000 500,000 OS 30% Potential acquisitions in the Cuesta Canyon area (Miossi and Ahearn Ranches). The Wadell Ranch property acquisition is anticipated to be complete by December 2016. 3 Open Space Maintenance 285,000 57,362 552,638 610,000 OS 50% Trailhead enhancement and deferred maintenance including kiosks and pet waste bag stations. 4 Ranger Program Pickup Truck (3 in 15-16) 139,000 111,201 27,799 139,000 OS 100% Fleet replacement (1), Fleet expansion (2). All units are in service. 5Natural Resources (Open Space Wildfire Fuel Reduction) 5,000 1,600 5,000 60,000 70,000 OS - Open Space maintenance efforts for fire prevention. 6 Ranger Services (Ranger Staffing; FTE = 2) 121,590 117,060 129,530 251,120 OS - Two Ranger Maintenance Workers. Subtotal 2,020,120 7 Bicycle Facility Improvements 100,000 30,573 169,427 200,000 T 30% Designing and constructing small-scale, miscellaneous bicycle facility improvements or additions to larger transportation projects to improve bicycle circulation including buffered bike lanes on Johnson and Longview. 8 Bicycle Transportation Plan Implementation 400,000 26,641 373,359 400,000 T 30%Implementing specific, significant projects identified in the Bicycle Transportation Plan. Bicycle improvements at Highland and Chorro have been completed. Construction on the Railroad Safety Trail Class I Connection Laurel & Orcutt is scheduled for early 2017. Plan development for the Broad Street Bike Boulevard is underway.9 Bike Bridge at Phillips Lane 250,000 250,000 T 25% Extending the Railroad Safety Trail from California/Phillips to Phillips/Pepper. 10 Bob Jones Trail Octagon Barn Connection 50,000 7,469 42,531 50,000 T95% Funding for the planning and environmental review of the extension of the Bob Jones pathway between the Octagon Barn and LOVR.. Approval expected in November 2016. 11 Downtown Renewal 6,000 6,000 D - Complete design of sidewalk replacement projects. Project will be started Winter 2016-17. 12 Pedestrian and Bicycle Pathway Maintenance 100,000 - 160,000 160,000 T100% Railroad Safety Trail maintenance. Completed October 2016. 13 Replacement of Lighted Crosswalk on Higuera Street 43,500 43,500 D,T75% Replacement of an aging system that has exceeded its service life. Construction is expected to be complete in early 2017. 14Safe Route to School Improvements-Pacheco and Bishop Peak 45,000 200 44,800 45,000 T15%Plan and implement Safe Route to School improvements to enhance safety and access for bicycling and walking to Bishop's Peak and Pacheco Elementary Schools. The community outreach meeting has been completed on assessment issues. Currently analyzing assessment issues and conducting technical studies. % Complete(as of 11/1/16) FY 2015-17 LOCAL REVENUE MEASURE EXPENDITURESThe following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure G, and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC).Bicycle and Pedestrian Improvements Description # MCGOIOOpen Space PreservationOperating Programs CIP 2-yr Total Funding Project TitleMajor City Goal (MCG) = Open Space Preservation (OS); Housing (H); Multi-Modal Transportation (T)Other Important Objective (OIO) = Neighborhood Wellness (N); Laguna Lake Restoration (LL); Downtown (D); Fiscal Sustainability/Responsibility (F)9/7/16Attachment 115
2015-16 (budget)2015-16 (unaudited actual)2016-17 (budget + projected carryover) 2015-16 (budget) 2015-16 (unudited actual) 2016-17 (budget + projected carryover) % Complete(as of 11/1/16) FY 2015-17 LOCAL REVENUE MEASURE EXPENDITURESThe following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure G, and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). Description # MCGOIOOperating Programs CIP 2-yr Total Funding Project Title15 Sidewalk and Tree Replacements 100,000 17,579 402,421 420,000 N,D,T 20% First sidewalk project area repairs including removing trip hazards, rebuilding tree wells, and installing dowtown mission-style sidewalks are completed. Additional project areas are currently being released for construction. 16 Sidewalk Ramp Construction 45,000 - 45,000 45,000 T100%Partially funded curb ramp construction on LOVR and Madonna Roads.Accessible curb ramps are coordinated with paving projects 17 Traffic, Bicycle & Pedestrian Marking Replacement 20,000 - 20,000 20,000 T - Project areas to replace crosswalks, stop bars and lane lines have been identified. Construction will occur in late 2016. 18Transportation Planning and Engineering (Engineers, Bike Coordinator; FTE = 1.6) 173,799 161,711 175,948 349,747 T - Engineers and Bicycle Coordinator. Subtotal 1,989,247 19 Monterey & Osos Traffic Signal Safety Upgrade 225,000 3,236 221,764 225,000 T25% Reconstruct traffic signal at location identified in the Traffic Safety Report. Plans are in design and construction is expected early 2017. 20 Neighborhood Traffic Improvements 20,000 20,000 20,000 40,000 N,T50% Improve traffic conditions in existing neighborhoods. Current efforts are being done for the South Chorro Street neighborhood, Buchon Street and High Street. 21 Parking Structures Assessment and Rehabilitation Study 8,333 - 8,333 8,333 - Study is primarily funded through the Parking Fund. 22 Signals and Lighting Maintenance Lift Truck 91,000 91,000 75% Fleet replacement. Unit is on order. 23 South & Parker Traffic Safety Project: Median 30,000 27,845 2,155 30,000 T100% Concrete median was installed on South Street at Parker Street to restrict left turning movements. This project was originally proposed through the City's Traffic Safety Program. 24 Traffic Operation Improvement Projects 30,000 - 30,000 30,000 T25%Small projects identified in Annual Traffic Operations Report to reduce congestion and improve travel times along major corridors. Locations have been identified and projects are in the planning phase. 25 Traffic Safety Improvement Projects 25,000 21,804 28,196 50,000 T50% Small projects identified in Annual Traffic Safety Report, including signal indication upgrades, signing and striping projects at location identified in the report. 26 Transportation Radar Trailer 15,000 14,520 480 15,000 100% Fleet replacement. Unit is in service. 27 Signal and Light Maintenance (Technician; FTE = 1) 96,866 96,866 98,127 194,993 T - Signal Technician. Subtotal 684,326 28 911 Phone System 245,000 27,598 - 245,000 100% Scheduled replacement. Project is complete. 29 Computer-Aided Dispatch 25,000 - 25,000 25,000 - Scheduled replacement of software for connectivity to County dispatch. 30 Fire Electronic Patient Care Reporting System 53,800 27,305 52,195 79,500 95% Electronic Patient Records Management for emergency response. 31 Fire Emergency Response Forklift 50,000 47,572 2,428 50,000 100% Fleet replacement. Unit is in service. 32 Fire Emergency Response SUV 99,400 99,400 - Fleet replacement. Traffic Congestion Relief / Safety ImprovementsPublic SafetyMajor City Goal (MCG) = Open Space Preservation (OS); Housing (H); Multi-Modal Transportation (T)Other Important Objective (OIO) = Neighborhood Wellness (N); Laguna Lake Restoration (LL); Downtown (D); Fiscal Sustainability/Responsibility (F)9/7/16Attachment 116
2015-16 (budget)2015-16 (unaudited actual)2016-17 (budget + projected carryover) 2015-16 (budget) 2015-16 (unudited actual) 2016-17 (budget + projected carryover) % Complete(as of 11/1/16) FY 2015-17 LOCAL REVENUE MEASURE EXPENDITURESThe following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure G, and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). Description # MCGOIOOperating Programs CIP 2-yr Total Funding Project Title33Fire Emergency Response Van with Ambulance Package 180,000 - 180,000 180,000 50% Fleet replacement. Unit is on order. 34 Fire Prevention SUV (2 in 15-16) 91,000 74,777 16,223 91,000 100% Fleet replacement. Unit is in service. 35 Fire Command Vehicle Equipment 5,260 - 5,260 5,260 - Installation of equipment that enables the Fire Command Vehicle to operate as a mobile command center. 36 Fire Station 2 Exterior Driveway Ramp Replacement 10,000 10,000 20% Settling and structural problems with existing driveway of Station #2. 37Fire Station 2 Restroom and Dorms Privacy Modifications 160,000 1,770 158,230 160,000 100% ADA upgrades and facility modernization to support female firefighters. Project is complete. 38 Police Administration Sedan 38,500 25,887 12,613 38,500 100% Fleet replacement. Unit is in service. 39 Police CAD hardware 250,000 - 250,000 250,000 - Additional server space for Police dispatch system. 40 Police Investigations Sedans (2 in 15-16) 66,600 58,210 8,390 66,600 100% Fleet replacement. Unit is in service. 41 Police Patrol Sedans (2 in 15-16, 3 in 16-17) 83,500 80,686 132,514 213,200 65% Fleet replacement. 2015-16 units are in service. 1 of the 2016-17 units is on order.. 42 Police Patrol SUV 53,000 - 53,000 53,000 100% Fleet replacement. Unit is in service. 43 Police Support Services Pickup 31,400 31,400 31,400 100% Fleet replacement. Unit is in service. 44 Police Traffic Safety Motorcycles (2, 1) 63,400 57,714 39,886 97,600 65% Fleet replacement. 2015-16 units are in service. 45 Policy Facility Site Assessment 45,000 - 45,000 45,000 15% Evaluate space needs and redevelopment potential of existing site. Completed scoping activities. Preparing to hire Architect to develop schematic layout. 46 Patrol Services (Officers, Sergeant; FTE = 4) 764,741 704,243 786,655 1,551,396 - Three Patrol Officers, Police Sergeant. 47 PuslePoint CPR Software 8,000 18,000 26,000 - App that allows community members to act as first responders. Subtotal 3,317,856 48 Capital Engineering Pickup Truck 31,500 30,076 1,424 31,500 100% Fleet replacement. Unit is in service. 49 Street Reconstruction & Resurfacing 1,566,817 967,372 2,580,145 3,547,517 T100% Johnson Avenue and Osos resurfacing completed in 2015-16. 2016-17 projects included Area 1 (neighborhoods north of Highland Drive and east of California) and Area 8 (east of california and Johnson up to Fixlini) and are also complete. 50 Streets Maintenance Asphalt Grinder & Trailer Mount 89,100 89,100 75% Fleet replacement. Unit on order. 51 Streets Maintenance Backhoe 128,000 128,000 100% Fleet replacement. Unit is in service. 52 Streets Maintenance Trucks 69,000 69,000 - Fleet replacement. 53 CIP Project Engineering (Inspector; FTE = 1) 109,234 93,361 116,258 225,492 - Field Engineering Inspector. 54Streets and Sidewalk Maintenance (Maintenance Worker; FTE = 1) 80,597 76,115 85,003 165,600 - Streets Maintenance Worker Subtotal 4,256,209 Neighborhood Street PavingCode EnforcementMajor City Goal (MCG) = Open Space Preservation (OS); Housing (H); Multi-Modal Transportation (T)Other Important Objective (OIO) = Neighborhood Wellness (N); Laguna Lake Restoration (LL); Downtown (D); Fiscal Sustainability/Responsibility (F)9/7/16Attachment 117
2015-16 (budget)2015-16 (unaudited actual)2016-17 (budget + projected carryover) 2015-16 (budget) 2015-16 (unudited actual) 2016-17 (budget + projected carryover) % Complete(as of 11/1/16) FY 2015-17 LOCAL REVENUE MEASURE EXPENDITURESThe following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure G, and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). Description # MCGOIOOperating Programs CIP 2-yr Total Funding Project Title55 Mission Plaza Railing Upgrade 30,000 - 60,000 60,000 D,T50% ADA upgrades required to fence picket spacing in guardrails. Project is designed and construction is expected to begin in Winter 2016-17. 56Building and Safety (Code Enforcement Officer, Neighborhood Services Specialists; FTE = 3) 247,185 235,376 256,639 503,824 N - Building Code Enforcement Officer, Neighborhood Services Specialists. Subtotal 563,824 57 Broad Street Bank Reinforcement 40,000 40,000 - 40,000 100% Old Garden Creek bank stabilization and sediment removal. Project is complete. 58 Flood Control Pickup Truck 28,500 25,548 2,952 28,500 100% Fleet replacement. Unit is in service. 59 Marsh Street Bridge Replacement 734,000 734,000 D,T50% Complete replacement of bridge build in 1909. 60 Storm Drain System Replacement 548,500 18,519 1,104,281 1,122,800 N100% Continued replacement of substandard corrugated metal pipes. 2015-16 projects consisting of three project areas are complete and included Albert Drive and Broad and High Street. Additional projects scheduled for summer 2017. 61 Toro Street Bank Stabilization 50,000 50,000 - 50,000 100% San Luis Creek bank stabilization and sediment removal. Project is complete. 62Creek and Flood Protection (Collection Operators, Stormwater Management Plan; FTE = 6) 577,878 519,634 583,794 1,161,672 N - Stormwater Code Enforcement Officer, Stormwater Collection Operators, Stormwater Management Plan. Subtotal 3,136,972 63 Golf Course Pickup Truck 28,500 28,500 10% Fleet replacement. Obtaining bids. 64 Olympic Pool Replastering 290,000 190,351 99,649 290,000 100% Replacement of existing shell plaster which is 17 years old and underwater lights which are 33 years old. Project is complete. 65 Park Major Maintenance & Repairs 86,000 41,490 549,510 591,000 25% Projects include sports courts, sports lights, bleachers and fencing. 66 Restroom Replacement and Remodeling 400,000 354,707 125,293 480,000 D50% Golf course restroom construction complete. Mission Plaza restroom design on hold waiting for the completion of the Mission Plaza Master Plan. 67 Octagon Barn Facility 206,000 3,282 202,718 206,000 - Funding to preserve and enhance the Octagon Barn through a community partnership. 68 Jack House Elevator Removal 22,000 21,136 864 22,000 100% Removal of non-historic elevator from the House. Project is complete. 69Parks and Landscape Maintenance (Maintenance Worker; FTE = 1) 77,658 77,658 78,657 156,315 - Parks Maintenance Worker. Subtotal 1,773,815 Fund Balance 2,254,548 2,083,624 2,323,611 7,078,110 2,797,463 10,149,346 17,742,369 Parks and Recreation/Senior Programs and FacilitiesTotal Local Revenue Measure UsesFlood ProtectionMajor City Goal (MCG) = Open Space Preservation (OS); Housing (H); Multi-Modal Transportation (T)Other Important Objective (OIO) = Neighborhood Wellness (N); Laguna Lake Restoration (LL); Downtown (D); Fiscal Sustainability/Responsibility (F)9/7/16Attachment 118
Revenue Enhancement Oversight Commission
November 16, 2016
FROM: Derek Johnson, Assistant City Manager
Greg Hermann, Principal Analyst
SUBJECT: 2015-16 ANNUAL COMMUNITY REPORT
RECOMMENDATION
1.Discuss concepts and provide direction for the 2015-16 Annual Community Report; and
2.Appoint two Commissioners to serve on a subcommittee to assist in the development of
the report.
DISCUSSION
Chapter 3.15 of the Municipal Code (the Essential Services Transactions [Sales] and Use Tax)
includes specific citizen oversight and fiscal accountability provisions. One of these provisions
requires an annual community report:
Annual Community Report. A written report shall be reviewed at a public hearing by the
Revenue Enhancement Oversight Commission, and a summary will be provided annually to
every household in the community detailing how much revenue is being generated by the
measure and how funds are being spent (MC 3.15.040.E).
The community report is produced annually based on revenues and expenditures from the
previous fiscal year. The most recent report was published for Fiscal Year (FY)
2014-15 (Attachment 2). This report included:
1.Background of the sales tax measure
2.Current and historical detail on Local Revenue Measure funding
3.How Local Revenue Measure funds were used including a Project Spotlight
4.Planned Local Revenue Measure uses for the following year
5.Detailed Local Revenue Measure funding schedule
The REOC should consider concepts and provide any direction on ways to enhance this report
for the public. Some previous improvements included 1) more graphics and charts, 2) translating
some of the “government jargon” into meaningful and simple terms, 3) eliminating some of the
narrative, 4) making the report shorter or producing a one-page version for public
distribution and inclusion in utility bills (Attachment 1), and 5) emphasizing how
resident input was integrated into the spending priorities and uses.
This year the City will be using Barnett, Cox and Associates (BCA) to design the report. BCA is
a San Luis Obispo-based public relations and marketing firm and currently provides a variety of
City wide communications support services.
19
Annual Community Report Page 2
The Annual Community Report and Report in Brief will be included in City utility bills in
February 2017 and discussed at the March 2017 REOC meeting.
ATTACHMENT
1.2014-15 Annual Community Report in Brief
2.2014-15 Annual Community Report
20
What is the Local Revenue Measure?
The Local Revenue Measure was approved by City voters in November 2006 to preserve essential
services for the community (Measure Y). Measure Y established a one-half percent local sales tax with
an eight-year sunset clause. The original measure would have expired on March 31, 2015, however voters
approved its extension for an additional eight years during the 2014 General Election when they passed
Measure G. The Local Revenue Measure is subject to voter extension by March 31, 2023.
Measures Y and G were general purpose measures and, as such, the proceeds are not restricted
to specific purposes. This provides the Council with flexibility to respond to new circumstances and
challenges.
The voter-approved ballot language provides guidance to use local sales tax revenue to protect and
maintain essential services and facilities, and identifies examples of services and projects that achieve
this objective. These community spending priorities help guide the Citizen’s Revenue Enhancement
Oversight Commission (REOC) when making recommendations to the Council about Local Revenue
Measure uses. The Council uses the REOC’s input, and additional public feedback, to prioritize the
use of Local Revenue Measure funding as part of the City’s two-year financial planning process. In the
annual report for FY 2014-15, the term Local Revenue Measure refers to the combined revenues from
Measure Y and G.
Local Revenue Measure ballot language (Measure G)
To protect and maintain essential services and facilities – such as open space
preservation; bike lanes and sidewalks; public safety; neighborhood street
paving and code enforcement; flood protection; senior programs; and other vital
services and capital improvement projects – shall the City’s Municipal Code be
amended to extend the current one-half percent local sales tax for eight years,
with independent annual audits, public goal-setting and budgeting,
and a Citizens’ Oversight Commission?
Local Revenue Measures Y and G
Annual Community Report in Brief
City of San Luis Obispo
July 2014 – June 2015
Attachment 1
21
Local Revenue Measure Uses
FY 2014-15 Local Revenue Measure funds were used on four Council-adopted priorities:
Preservation of Essential Services, Traffic Congestion Relief, Open Space Preservation,
and Infrastructure Maintenance and Improvements.
FY 2014-15 Local Revenue Measure Uses ($6.7M)
Open Space Preservation
Infrastructure Maintenance
and Improvements44%
1%
Traffic Congestion Relief 2%
Preservation of Essential Services 53%
Public Safety – 28%
Maintenance Services – 21%
Neighborhood Wellness – 4%
The Annual Community Report with further detail on FY 2014-15 Local Revenue Measure funds
and uses is available online at www.slocity.org/budget. A public meeting to discuss the report
will be held at the Ludwick Community Center at 6 p.m. on Thursday, March 10, 2016.
Attachment 1
22
Local Revenue Measures Y and G
Annual Community Report
City of San Luis Obispo
July 2014 – June 2015
Attachment 2
23
What is the Local Revenue Measure?
The Local Revenue Measure was approved by City voters in November 2006 to preserve essential
services for the community (Measure Y). Measure Y established a one-half percent local sales tax with
an eight-year sunset clause. The original measure would have expired on March 31, 2015, however voters
approved its extension for an additional eight years during the 2014 General Election when they passed
Measure G. The Local Revenue Measure is subject to voter extension by March 31, 2023.
Measures Y and G were general purpose measures and, as such, the proceeds are not restricted
to specific purposes. This provides the Council with flexibility to respond to new circumstances and
challenges.
The voter-approved ballot language provides guidance to use local sales tax revenue to protect and
maintain essential services and facilities, and identifies examples of services and projects that achieve
this objective. These community spending priorities help guide the Citizen’s Revenue Enhancement
Oversight Commission (REOC) when making recommendations to the Council about Local Revenue
Measure uses. The Council uses the REOC’s input, and additional public feedback, to prioritize the
use of Local Revenue Measure funding as part of the City’s two-year financial planning process. In the
annual report for FY 2014-15, the term Local Revenue Measure refers to the combined revenues from
Measure Y and G.
Local Revenue Measure ballot language (Measure G)
To protect and maintain essential services and facilities – such as open space
preservation; bike lanes and sidewalks; public safety; neighborhood street
paving and code enforcement; flood protection; senior programs; and other vital
services and capital improvement projects – shall the City’s Municipal Code be
amended to extend the current one-half percent local sales tax for eight years,
with independent annual audits, public goal-setting and budgeting,
and a Citizens’ Oversight Commission?
2
Attachment 2
24
FY 2014-15 Local Revenue Measure Funds
Local half-percent sales tax revenue totaled $7.1M in FY 2014-15. This is a five percent increase
from the previous fiscal year. The Local Revenue Measure has generated over $50M since its
original adoption in November 2006.
*Forecasted revenue per 2015-17 Financial Plan
$-
$1
$2
$3
$4
$5
$6
$7
$8 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16* 2016-17* MILLIONSFISCAL YEAR
Local Revenue Measure Funds
3
Attachment 2
25
Local Revenue Measure Uses
FY 2014-15 local revenue measure funds were used on four Council-adopted priorities:
Preservation of Essential Services, Traffic Congestion Relief, Open Space Preservation,
and Infrastructure Maintenance and Improvements.
FY 2014-15 Local Revenue Measure Uses ($6.7M)
Open Space Preservation
Infrastructure Maintenance
and Improvements44%
1%
Traffic Congestion Relief 2%
Preservation of Essential Services 53%
Public Safety – 28%
Maintenance Services – 21%
Neighborhood Wellness – 4%
4
Attachment 2
26
Local revenue measure uses fall into two categories: operating expenses such as funding a full-
time Open Space Ranger, and capital expenses such as constructing bicycle paths. Operating uses
in FY 2014-15 were approximately $2.6M (39%), and capital uses were about $4.1M (61%), totaling
approximately $6.7M.
The largest use of local revenue measure funding for operating costs was for Preservation of
Essential Services, specifically for Public Safety. Examples of these costs are funding for such
positions as Downtown Patrol Officers and Fire Prevention personnel.
The largest capital expenditures funded by the local revenue measure in FY 2014-15 were for
Infrastructure Maintenance & Improvements, specifically for the Santa Rosa Skatepark,
Street Paving, and Downtown Renewal projects.
Further detail on FY 2014-15 local revenue measure funds and uses can
be found in the Local Revenue Measure Summary (FY 14-15), which is
included in this report and available online at www.slocity.org/budget.
1. Operating Uses ($2.6M)
2. Capital Uses ($4.1M)
For every $1 of Measure Y and G
revenue, $.72 is paid by visitors
and $.28 is paid by City residents.
(2014 Retail Sales Analysis)
5
Attachment 2
27
43% of funding
for the SLO Skate
Park came from
Measure Y
The SLO Skate Park project would not have been possible in its full capacity without significant funding
generated by the Local Revenue Measure. Other funding came from City parkland development funds
and a notable grant from the Tony Hawk Foundation.
The SLO Skate Park at Santa Rosa Park
opened on Saturday, February 28, 2015. It
progressed from a dream of the local skate
community, to a master plan, and finally to the
construction phase, after being adopted as a
Measure Y Project Spotlight:
Measure Y Project in Focus:
SLO Skate Park
Major City Goal and Measure Y priority project in
the 2013-15 Financial Plan. The SLO Skate Park
is a 15,500 square-foot concrete park that is an
invaluable addition to the City’s multi-use facilities,
serving locals and visitors alike.
43%57%
Future Focus
6
Attachment 2
28
Planned Local Revenue Measure Uses
A shift towards more capital uses and less operating (about 70/30) should be expected in future fiscal
years given the Council’s new direction on Local Revenue Measure priorities in the latest Financial Plan:
FY 2015-16 Local Revenue Measure Expenditures ($9.3 M)
Open Space Preservation
Bicycle & Pedestrian Improvements
Traffic Congestion Relief
(Safety Improvements)
Public SafetyNeighborhood Street Paving
Flood Protection
Code Enforcement
Parks & Recreation/
Senior Programs & Facilities12%
13%
3%
19%
13%
11%
24%
5%
7
Attachment 2
29
CITY OF SAN LUIS OBISPO
LOCAL REv ENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Police Services 924,073 914,952 ----
Police Vehicles --141,379 175,600 266,970 50,009
Public Safety Mobile
Data Computers
--184,500 188,000 -372,500
Fire Prevention & Training 450,421 450,421 ----
Extrication Equipment ------
Fire Engine/Truck Replacement:
Debt Service
---247,503 247,503 -
Fire Station #2 Remodel --2,070 27,800 18,514 11,356
Quickest Route Software --1,970 -1,970 -
Preservation of Essential Services – Public Safety
Item Budgeted Actual
Spent
Previous
Carryover
Budgeted Actual
Spent
Carryover
to FY15-17
Streets, Sidewalks and
Traffic Signal Operations
177,055 174,095 ----
Creek & Flood Protection 455,824 447,140 31,021 450,000 53,162 427,859
Parks 77,837 77,837 569,625 580,000 504,500 645,125
Project Management & Inspection 113,253 111,130 ----
Preservation of Essential Services – Maintenance Services
Enhanced Building & Zoning
Code Enforcement
118,268 107,273 ----
“SNAP” Enhancement 53,079 53,079 ----
Neighborhood Code
Enforcement Specialists
147,368 116,769 ----
Preservation of Essential Services – Neighborhood Wellness
Traffic Safety Report
Implementation
--25,000 25,000 6,045 43,955
Traffic Operations Report
Implementation
--30,000 --30,000
Traffic Engineer 100,351 91,295 ----
Traffic Sign Maintenance ---40,000 -40,000
Bicycle Facility Improvements --81,064 100,000 29,666 151,398
Neighborhood Traffic
Improvements
--15,154 20,000 11,374 23,780
Traffic Congestion Relief
8
Operating Programs Capital Projects
Attachment 2
30
CITY OF SAN LUIS OBISPO
LOCAL REv ENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Open Space Preservation
Infrastructure Maintenance & Improvements
Santa Rosa Skatepark --1,209,987 -949,521 260,466
Street Reconstruction
& Resurfacing
--461,128 1,174,300 458,203 1,177,225
Broad Street Creek
Bank Reinforcement
--15,629 -9,736 5,893
Downtown Renewal ---687,500 554,404 133,096
Facility Maintenance --27,971 94,000 40,618 81,353
Jack House Exterior Painting --25,000 -25,000 -
Johnson Avenue
Underpass Pump
--190,000 -78,799 111,201
Mission Plaza Railing Upgrade --30,000 30,000 38,821 21,179
Olympic Pool Replastering --19,475 310,000 3,606 325,869
Pedestrian and Bicycle Pathway
Maintenance
---60,000 60,000 -
Sidewalk Repairs ---25,000 21,733 3,267
Tree Maintenance Equipment --100,400 --100,400
Playground Equipment
Replacement
--203,141 -33,750 169,391
Sinsheimer Stadium
Building Assessment
--26,776 --26,776
Sinsheimer Parking Lot Paving --79,834 -79,834 -
Mission Plaza Master Plan --100,000 --100,000
I.T. Replacement Fund -- 383,934 - 383,934 -
Facility Maintenance Reserve --206,521 -206,521 -
Open Space Acquisition --200,000 200,000 -400,000
Froom Ranch Improvement --2,687 -2,687 -
Ranger Services Staffing 57,028 54,426 ----
Open Space Wildfire Reduction 5,000 5,000 ----
Sub-Totals - Actual Spent 2,598,332 4,086,851
9
Item Budgeted Actual
Spent
Previous
Carryover
Budgeted Actual
Spent
Carryover
to FY15-17
Operating Programs Capital Projects
2014-15 Local Revenue Measure Uses – Actual Spent – Combined Total 6,685,183
Attachment 2
31
Priorities set by the City Council for FY 2014-15 include:
City of San Luis Obispo
www.slocity.org/budget
Preservation of Essential Services,
Traffic Congestion Relief,
Open Space Preservation, and
Infrastructure Maintenance
and Improvements.
For more information, please visit:
Attachment 2
32
Revenue Enhancement Oversight Commission
November 16, 2016
FROM: Derek Johnson, Assistant City Manager
Greg Hermann, Principal Analyst
SUBJECT: 2017-19 FINANCIAL PLAN PROCESS AND REVENUE ENHANCEMENT
OVERSIGHT COMMISSION MEETING SCHEDULE
RECOMMENDATION
1. Review the process to develop the 2017-19 Financial Plan; and
2. Discuss recommended clarifications and changes to the REOC meeting schedule.
DISCUSSION
Background
The City utilizes a two-year financial planning process to create its budgets. This process
includes extensive public outreach to assist the City Council in establishing Major City Goals.
The benefits of this process are two-fold, it ensures that resources are provided in the budget to
accomplish the community’s highest priority, most important objectives, and it helps create a
mutual understanding among residents, decision makers, and staff about what can be achieved by
working together.
The fundamental purpose of the City’s Financial Plan is to link what the City wants to
accomplish for the community with the resources necessary to do so. The City’s Financial Plan
process does this by: 1) clearly setting major city goals and other important objectives; 2)
establishing reasonable time frames and organizational responsibility for achieving them; and 3)
allocating resources for programs and projects. A complete schedule for the 2017-19 Financial
Plan was presented to the City Council on September 6th, 2016 (Attachment 1).
The City is currently in Fiscal Year Two of the 2015-17 Financial Plan, and the goal-setting
process for the 2017-19 Financial Plan is now underway.
REOC Meeting Schedule
The REOC standard meeting is included below and was created to complement the existing
financial plan development schedule:
33
City of San Luis Obispo, Title, Subtitle
2017-19 Financial Plan Process and REOC Meeting Schedule Page 2
Staff recommends the Commission consider the following clarifications and changes based on
experience from implementing the meeting schedule over the previous year:
Fiscal Year Two
A. Clarify that the Citizen Oversight Meeting be incorporated into the Community
Forum. In previous years, the Citizen Oversight Meeting for the Local Revenue Measure
has occurred as a part of the Community Forum. This allows the public to only attend one
meeting to provide feedback on both the overall City budget as well as the Local
Revenue Measure. The Community Forum (January 10, 2017) would be a special
meeting of the REOC.
B. Hold the meeting to discuss the Annual Community Report in March. The REOC is
required to hold a public hearing to discuss the Annual Community Report. The data used
in the report is based on the audited figures used for the Comprehensive Annual Financial
Report (CAFR). The CAFR is completed by the end of the calendar year, but the Council
does not approve it until February. It is recommended that the distribution of the Annual
Community Report be aligned with the approval of the CAFR and the public hearing to
discuss the report be held in March. This could be combined with currently planned
March meeting to discuss budget recommendations or be a separate meeting.
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City of San Luis Obispo, Title, Subtitle
2017-19 Financial Plan Process and REOC Meeting Schedule Page 3
Those revisions are reflected in the meeting schedule below:
At the conclusion of the REOC completing its first full, two-year cycle of meetings, staff will
bring forward any recommendations for bylaw or ordinance changes to reflect lessons learned
over that time period.
ATTACHMENTS
1. September 6th, 2016 City Council Agenda Report
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Meeting Date: 9/6/2016
FROM: Xenia Bradford, Interim Finance Director
SUBJECT: FINANCIAL PLAN SCHEDULE FOR 2017-19
RECOMMENDATION
Approve the goal setting process and timetable for the development of the 2017-19 Financial Plan.
REPORT-IN-BRIEF
This report sets forth the proposed Council goal setting process and schedule for the
development of the City’s 2017-19 Financial Plan. The key dates and steps in the goal-setting
process are summarized below and then discussed in greater detail. The Council meeting dates
shown in June 2017 cover the review and final action and adoption of the budget following
Council’s Goal Setting and Strategic Budget Direction:
Proposed Key Council Meeting Dates: Goal-Setting Process for 2017-19
Tuesday, November 15, 2016
Regular Meeting
6:00 p.m.
1) Setting the Stage. Provide the background needed for goal-setting
by considering the current status of both long and short term goals
previously adopted by the City. This meeting will include an update of
the General Plan status, Capital Improvement Plan projects, and Major
City Goals.
Tuesday, December 6, 2016
Regular Meeting
2) Budget Foundation. Finalize plans for the goal-setting process
including deadline for submitting Council Member candidate goals;
review Financial Plan policies (including pay-down of unfunded
liabilities) and organization of the Financial Plan; and review of long-
term economic forecast.
Tuesday, January 10, 2017
Special Workshop
6:30 to 9:30 p.m.
3) Community Forum. Consider comments and suggested goals from
residents, community groups, other interested individuals and Council
advisory bodies.
Saturday, January 28, 2017
Special Workshop
8:30 AM to 4:00 PM
4) Council Goal-Setting Workshop. Discuss candidate goals
presented at Community Forum; consider Council member goals;
prioritize and set Major City Goals.
Tuesday, February 21, 2017
Regular Meeting
5) Mid-Year Report and Guiding Principles for Allocation of
Resources. Review of results from 2015-16; Review Five Year
Forecast; hold initial discussion on guiding principles for fund
allocation within the 2017-19 Financial Plan framework and options to
be considered for paying down the unfunded liabilities.
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Proposed Key Council Meeting Dates: Goal-Setting Process for 2017-19
Tuesday, April 18, 2017
Special Workshop
6:00 p.m.
6) Major City Goal Work Programs & Strategic Budget Direction.
Conceptually approve detailed work programs for Major City Goals
adopted by the Council; set strategic budget direction for preparation
of the 2015-17 Financial Plan.
Tuesdays, June 1 & 6, 2017
June 8 if not complete)
Special Workshops
5:00 p.m.
Hold workshops to review and discuss Preliminary Budget
June 6: General Fund operating programs and General Fund CIP
June 13: Enterprise Fund programs, CIP projects and rates
Tuesday, June 20, 2017
Regular Meeting
Continues Financial Plan review and adopts budget. Holds special
meeting on June 27 if needed to continue review and adopt budget.
DISCUSSION
Based on the City’s experience over the years, informed by Council and community feedback, staff
recommends beginning the two-year 2017-19 Financial Plan process with the Council setting goals
for the most important initiatives for the City to accomplish over the next two years. This has been
a successful approach in assuring the most optimal achievement of the fundamental purpose of the
City's budgetary process which is:
Linking through public engagement and decision making process the interests of
the community to optimize the allocation of financial resources to achieve the
desired results.
As mentioned above and as reflected in the schedule at Attachment A, staff is recommending a six-
step process for identifying and reaching agreement on Financial Policies and Council’s Major City
Goals. Each of the five major goal setting steps is described in greater detail below:
STEP 1. “Setting the Stage” Workshop.
A special meeting on November 15 will be
devoted to a comprehensive review of the status
of current City plans, goals, policies and
programs. This is an especially appropriate start
as the Council goal-setting process should take
into consideration the City’s adopted long-term
plans, current two-year goals, and updated
fiscal outlook. Accordingly, staff plans to
present reports on the following:
a. Status of General Plan Programs. Staff
plans to present an overview of the
status of each General Plan program in
all of the ten Elements (over 400
programs in total). Organized by
New Council-Elect Members
In order to “set the stage” in a timely
manner for the goal-setting and budget
process, this meeting must be scheduled
before any new Council members take
office in December. However, the
Council-Elect Members” will be known
by then and will be encouraged to attend.
With its emphasis on revisiting existing
plans, policies and goals, this is an
excellent “primer” for any new Council
members. For this reason, staff will
highlight the importance of this workshop
with Mayor and Council candidates, and
strongly encourage them to put this on their
calendars to attend if they are elected.
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Element, staff will provide a short summary of each program, whether it has been
completed, and if not, a high level assessment of how difficult it will be to complete. As
we did two years ago, we also plan to present a similar summary of the status of the
programs in the Conceptual Physical Plan for the City’s Center. While this is not a
General Plan Element, it is referenced in the General Plan, and several of its programs are
closely linked and provide a framework for Downtown development.
b. Long Term Capital Improvement Plan. This will provide a “high level” summary of the
estimated costs of the new facilities and infrastructure that will be needed to implement
our General Plan at build-out based on plans and policies previously adopted by the
Council.
c. Status of Our Current Two-Year Major City Goals: Carryovers and Spin-Offs. Since
some of the Major City Goals may not be complete by June 2017, the unfinished work
needed to complete them may be candidate Major City Goals for 2017-19. For those
goals where the specific work programs for 2015-17 may be completed by June 2017,
there may be “spin-off” tasks as a result. This is especially true for work programs where
the objective was to complete plans or studies. A likely “spin -off” into 2017-19 may be
implementation of these studies.
d. Status of Current Capital Improvement Plan (CIP) Projects. This report will present an
overview of the status of all current CIP projects. It will also identify candidate projects
for deletion or deferral based on their status and priority relative to other needs that have
emerged since they were initially approved.
The volume of information to be conveyed at the “Setting the Stage Workshop” makes it most
effective to hold a dedicated budget workshop to ensure adequate time for the Council to ask
questions and fully discuss these issues.
STEP 2. “Budget Foundation” Workshop.
This meeting on December 6th will be dedicated to generating policy guidance from Council that
will serve as the foundation for the City’s budget and goal-setting process. Staff plans to cover the
following topics at this workshop:
a. Finalize plans for the Community Forum and Council Goal-Setting Workshop. Staff will
present a proposed approach for the forum and goal-setting workshop at this meeting.
b. Review Financial Plan policies contained in Section H of the 2015-17 Financial Plan and
update or recommend changes as appropriate. This may include proposed changes to the
existing fund balance targets for enterprise funds and capital replacement funds.
c. Review the organization of the Financial Plan and obtain Council guidance regarding the
style of presentation expected or preferred by Council.
d. Review the City’s long-term economic forecast.
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STEP 3. Community Forum & Community Engagement.
a. Community Forum. Held on the evening of Tuesday, January 10, 2017, the purpose of
this workshop is to solicit and discuss suggested goals and work programs from Council
advisory bodies, community groups and interested individuals. Advisory Body goals will
be developed during the fall of 2016 and submitted to staff in final form by the end of
December 2016. As in the past, staff plans to hold the community forum at the Ludwick
Community Center.
b. Community Engagement. Following the City’s adopted public engagement manual,
upon Council approval of the budget calendar, staff will mail notices to community groups,
governmental agencies, media organizations and interested individuals inviting them to
participate in this process. In addition to these notices, staff plans to place display ads in
The Tribune, SLO Journal, SLO City News, and New Times in order to encourage the
broadest possible participation in this process. Information about the goal-setting and
budget process will also be placed on the City’s web site. Staff will explore other means
such as social media outlets, that will help spread the word about this important opportunity
including the insertion of a Community Budget Bulletin in all utility bills inviting the public
to participate in the goal-setting and budget process, and soliciting comments on the “three
to five most important things for the City to do in the next two years.” In addition, the City
will follow the Public Engagement Manual and will seek support and guidance from the
City’s communications consultant. In the past the traditional approach has generated
hundreds of replies which were transcribed in their entirety and distributed to the Council
along with a summary of “top themes.” It is anticipated that additional outreach will invite
expanded engagement with the intent to generate a broad range of perspectives
representative of the entire community.
STEP 4. Council Goal-Setting Workshop.
The Council goal-setting workshop will be held on Saturday, January 28, 2017 in a suitable venue
such as the City/County Library Community Room. This will be an all day workshop to answer the
question, “What are the most important, highest priority things for the City to accomplish over the
next two years.” Council members will be asked to provide up to five goals before the workshop
which staff will organize and distribute prior to the workshop. As in the past, staff recommends the
use of a professional facilitator to assist in prioritizing input into three categories, Major City Goals,
Other Council Objectives, and Address as Resources Permit. Using an independent facilitator
allows all Council members to participate fully in the process; and allows staff to devote our efforts
to listening and learning. Moreover, the facilitator can assist the Council ensuring that the number,
size and scope of the goals established are appropriate.
STEP 5. Mid-Year Report and Guiding Principles for Allocation of Resources.
After the Budget Foundation Workshop, the Mid-Year Review and review of Five Year
Forecast, will allow the Council an early opportunity to refine its long-term financial planning
policies while looking at the local economy in the long-term, which could include identification
of potential impacts of the closure of Diablo Canyon. This review will allow for the efficient
allocation of resources with the 2017-19 Financial Plan focusing on community priorities and
will occur at the February 21, 2017 meeting.
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STEP 6. Major City Goal Work Programs and Strategic Budget Direction.
In April 2017, a critical part of this process, referred to as Strategic Budget Direction occurs.
This meeting affords the City Council an early opportunity to review the draft work programs
and associated financial resources proposed to accomplish the adopted Major City Goals for the
2017-17 Financial Plan. At this stage of the process the City Council provides direction on any
changes needed to refine these work programs to achieve the desired outcomes. Additionally, the
City Council is asked to provide the City Manager with the key policy direction needed to
allocate resources in line with Council’s expectations or to further amend budget or fiscal
policies that align with Council direction. This process is extremely helpful so that the
Preliminary Financial Plan that is presented to the City Council and community in May mirrors
the Council’s expectations as much as possible.
Strategic Budget Direction detailed work programs for the Major City Goals will provide the
following information:
Objective. What do we specifically want to accomplish? (This will be based on the
objective adopted by the Council at the January 28th goal-setting workshop.)
Discussion. What are the factors driving the need for this goal? What actions have we
already taken in trying to resolve this problem area? What are the key assumptions? What
key challenges, constraints or obstacles can we expect in achieving this goal? What concern s
or issues will remain unresolved even if the goal is achieved? Who are the key stakeholders?
Action Plan. What specific tasks will we need to accomplish in order to achieve the goal,
and when will we complete them? These “action steps” are the fundamental building blocks
in defining and scoping the work program, and in monitoring our progress in accomplishing
the goal over the next two years.
Responsible Department. Who is accountable for getting it done?
Financial and Staff Resources Required to Achieve the Goal. What will it take to achieve
the goal? Do we need to add resources (staffing, contract services, and/or CIP project) to do
this?
Outcome: Final Work Product. What will we get if we achieve the goal? What’s the
deliverable?”
Other Key Steps in Developing the 2017-19 Financial Plan Include Budget Hearings and
Budget Adoption.
The Budget hearings ( also known as “Fund Reviews” for the enterprise funds) are currently
scheduled for two consecutive meeting days in June (Thursday June 1 and Tuesday June 6). The
proposed schedule combines the General Fund Operating Programs and Capital Improvement
Program reviews into one meeting. Consideration of this slight modification with this report is a
perfect opportunity for the Council to reflect on this schedule versus other options (3 meetings as an
example).
Advisory Body Participation
Consistent with past Council direction, the City’s advisory bodies will again play an important
role in the goal-setting process by providing the Council with their recommended goals for 2017-
19. Staff will provide advisory body members with background materials outlining their
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important role in this process and have scheduled an update on this process at the next quarterly
meeting with the Mayor and advisory body chairs on October 13, 2016. Lastly, support staff
liaisons are already beginning to work with Advisory Body Chairs in scheduling time for this
purpose at upcoming advisory body meetings.
SUMMARY
This report sets forth the proposed Council goal setting process and schedule for the
development and ultimate adoption of the City’s 2017-19 Financial Plan. Council will be asked
to consider whether the budget workshop dates are acceptable or need to be changed to suit their
needs for reviewing the preliminary financial plan.
FISCAL IMPACT
There is no direct fiscal impact from the adoption of the 2017-19 Financial Plan and Goal Setting
Schedule. The Goal Setting Process and the development of the Financial Plan inherently take
considerable amounts of staff time. Publicizing the process and notification of interested parties
will engender nominal advertising and mailing costs covered through current allocations in the
City Clerk and Finance and IT budgets.
Attachments:
a - Financial Plan Schedule 2017-19
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Attachment 1: 2017-19 Financial Plan Calendar: Proposed Key Dates for Council
When Who What
September 6, 2016 Council Approves 2015-17 Financial Plan Schedule
October 13, 2016 City Manager,
Finance
Updates advisory body chairs on the goal-setting process at the
Mayor's quarterly meeting
November 1, 2016 Finance Begin sending letters inviting participation in goal-setting process to
community groups and interested individuals. Begin inserting
Community Budget Bulletins in utility bills
November 7, 2016 Advisory
Bodies
Provide recommended goals to Finance
November 15, 2016
Special Workshop
7:00 p.m.
Council Holds Setting the Stage workshop on status of General Plan
programs, long-termcapital improvement plan (CIP), status of Major
City Goals and objectives, and CIP projects
November 21, 2016 Finance Distributes consolidated listing of draft recommended goals to
advisory bodies for their review
December 6, 2016
Regular Meeting
May start early PM
Council Budget Foundation. Finalizes goal-setting process and plans for
Community Forum. Reviews and provides guidance regarding
Financial Plan policies.
December 13, 2016 Finance Receives written comments from community groups and interested
individuals, and any changes in goals from advisory bodies.
January 10, 2017
Special Workshop
6:30 to 9:30 p.m.
Council Holds Community Forum at the Ludwick Community Center to
receive and review goals presented by individuals, community
groups, and advisory bodies
January 28, 2017
Special Workshop
8:30 a.m. to 4:00 p.m.
Council Holds Saturday Goal-Setting Workshop to discuss candidate goals
presented at January 10 Community Forum; discusses Council
member goals distributed on January 19; prioritizes and sets Major
City Goals
February 21, 2017 Council Mid-Year Report and Guiding Principles for Allocation of
Resources. Review of results from 2015-16; Review Five Year
Forecast; hold initial discussion on guiding principles for fund
allocation within the 2017-19 Financial Plan framework and options
to be considered for paying down the unfunded liabilities.
April 18, 2017
Special Workshop
6:00 p.m.
Council Approves detailed work programs for Major City Goals. Sets
strategic budget direction in preparing Preliminary Financial Plan
May 15, 2017 City Manger Finalizes budget recommendations and issues preliminary budget
May 17, 2017 Planning
Commission
Reviews CIP for consistency with General Plan
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Financial Plan Schedule 2015-2017 Page 2
June 1 & 6, 20171
Special Workshops
Preliminary Budget
5:00 p.m.
Council Holds evening workshops to review and discuss Preliminary Budget
June 6: General Fund operating programs and General Fund CIP
projects
June 13: Enterprise Fund programs, CIP projects and rates
June 20, 2017 Council Holds continued Financial Plan review and adopts budget
June 27, 2017 Council If required, holds special meeting to continue review and adopt
budget
1 June 8th is a “backup” meeting should the City Council needan additional before final adoption on June 20, 2017.
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