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Council Reading File - 2016-17 Mid Year
San Luis Obispo, California 2016‐17 Mid‐Year Budget Review For the 2015‐17 Financial Plan 2015-17 Financial Plan MID-YEAR BUDGET REVIEW: 2016-17 February 2017 HEIDI HARMON, MAYOR DAN RIVOIRE, VICE MAYOR CARLYN CHRISTIANSON, COUNCIL MEMBER AARON GOMEZ, COUNCIL MEMBER ANDY PEASE, COUNCIL MEMBER KATIE LICHTIG, CITY MANAGER Prepared by the Department of Finance Xenia Bradford, Interim Director of Finance Courtney Steck, Interim Budget Manager Rico Pardo, Accounting Manager/Controller Mika McGee, Administrative Assistant TABLE OF CONTENTS A. Transmittal Memorandum Overview A-1 Summary of Significant Findings A-2 Recommendations A-4 General Fund Balance A-6 Conclusion A-8 B. Financial Condition Summaries Revenue by Major Category B-1 Changes in Financial Position B-8 Revenue Budget Adjustments B-39 Expenditure Budget Adjustments B-40 Interfund Transactions B-42 C. Status of Goals and Objectives D. Recent Financial and Revenue Reports Sales Tax Newsletter: Second Calendar Quarter 2016 D-1 Monthly TOT Report: November 2016 D-3 Overview C-1 Open Space Preservation C-4 Multimodal Transportation C-10 Housing C-14 Neighborhood Wellness C-20 Laguna Lake Restoration C-24 Fiscal Stability and Responsibility C-26 Downtown C-30 Status of Major CIP C-32 Section A TRANSMITTAL MEMORANDUM February 21, 2017 TO: Mayor and City Council FROM: Katie Lichtig, City Manager Xenia Bradford, Interim Finance Director Courtney Steck, Budget Manager SUBJECT: 2016-17 MID-YEAR BUDGET REVIEW OVERVIEW The City’s Budget and Fiscal Policies call for a formal financial status report to the Council six months after the beginning of each fiscal year. The Mid-Year Budget Review meets this requirement and allows the Council to take a broader look at the City’s financial picture at the mid-point of the fiscal year. This report provides: 1. An update to the beginning fund balance projections based on actual audited results from the prior fiscal year with uses to be considered during strategic budget direction. 2. An analysis of revenue trends since adoption of the Financial Plan, and revision of revenue and ending fund balance projections accordingly. 3. An update on the status of the Major City Goals, Other Important Objectives, Capital Improvement Plan projects, and other objectives. 4. Identification of any budget adjustments that require Council action, and recommendations for supplemental budget adjustments. This mid-year budget update shows that the City remains financially sound; maintaining a positive fund balance in fiscal years 2015-16 and 2016-17. Sales tax projections for 2016-17 have been lowered by $1.2 million due to two primary factors. Sales tax revenue growth is slower than originally anticipated six months ago. The analysis is based on statewide trends as well as San Luis Obispo receipts: both show a slower rate of growth. California Legislative Analyst office analysis predicts further slowing down of the economy with a mild recession in 2019-20. The second reason is a potential reporting issue identified by the City’s contracted HdL companies, who review the City’s tax receipts. Up to $400,000 of sales tax revenue was likely incorrectly reported within the City’s limits. These fund will be set-aside pending the Board of Equalization review. The projections into the future have also been lowered to account for this potential reporting error. Property tax estimates received from the County of San Luis Obispo, came-in higher by $256,000. Other major General Fund revenues such as, Transient Occupancy Tax (TOT), Property Tax, Utility User’s Tax, continue to increase, in alignment with previous budget estimates, although TOT growth over prior year actuals is lower than in previous years. Development Review fees have once again showed higher growth than originally budgeted and are estimated at $247,000 higher than original budget. Overall, General Fund revenue sources are estimated to decrease by $548,000. There are no significant expenditure variances that would impact fund balances projected as a result of expenditure trends through the end of December 2016. The General Fund balance, including Local Revenue Measure sub-fund, at the end of fiscal year 2015-16 was approximately $29.6 million, of which $10.4 million was classified as unassigned per year-end Comprehensive Annual Report audited results. Of this amount, $5.8 million was allocated in one-time funds with the 2016-17 Supplement. $344,727 was encumbered within the Local Revenue Measure sub-fund and is reclassified as committed funds. Per the City’s Long-Term Financial Planning policy and balanced budget, this available fund balance can only be used to fund “one-time,” non-recurring expenditures. Based on latest revenue trends and expenditures, the estimated fund balance at the end of the current 2016-17 fiscal year above policy required reserve A-1 of 20% of operating expenditures, is estimated at $3.35 million and may be recommended to be allocated for one- time expenditures as part of the 2017-19 Financial Plan development. The current 2015-17 Financial Plan budget prefunds portions of the City’s long-term liabilities. As part of the December 13, 2016 Budget Foundation meeting, the Council adopted policy prioritizing the City’s unassigned fund-balance due to one-time expenditure savings or one-time increase in revenue to pay down long-term unfunded liabilities and invest in infrastructure. This policy will be incorporated into the 2017-19 Financial Plan. All Funds Reviewed Revenue and expenditure trends for all funds have been reviewed and budget adjustments are proposed in this document, based on revised projections. General Fund Summary of Significant Findings After reviewing the City’s audited financial results from 2015-16 and analyzing the current fiscal year-to-date revenue and expenditure trends, staff applied its best and most prudent professional judgment to confirm the revenue and expenditure projections for the rest of the fiscal year. The following points highlight the major changes that have been made to the original General Fund revenue and expenditure projections compared to the adopted 2016-17 budget: 1. Revenue: General Fund and Local Revenue Measure Fund revenues received through December 2016 were compared to receipts from 12 months ago and a forecast of future revenues for the rest of 2016-17 was developed to determine the annual revenues to be derived from each revenue source. 2016-17 revenues are forecasted to decrease by a total of $548,000 from the original budget amount. This projected decline is due to the Sales Tax decrease partially offset by an increase in Property Tax and Development Review fees. The revised projections for major revenues shown in this document represent growth trends that are in line with the those provided by the City’s Sales Tax advisor for sales tax assumptions, and other outside sources such as San Luis Obispo County for Property Tax receipts, current contract agreements related to fee reimbursements and current Local Revenue Measure trends. 2. Expenditures: The budget continues the assumption that there will be savings in expenditures equal to approximately $1.4 million. 3. Insurance Benefit Fund: 2016-17 Supplemental Budget authorized an additional payment of $750,000 for CalPERS unfunded liability and $250,000 for OPEB unfunded liability. These funds were originally transferred to the Insurance Benefit Fund. 4. Development Services: By resolution on June 17, 2014 the City Council revised fiscal policies to provide for the City Manager to reallocate up to 75% of Development Services revenues to acquire temporary resources for the timely processing of development applications and other permit processing activities. The policy calls for reallocated revenues to be reported to the City Council on a semi-annual basis as part of the mid-year and annual budget presentations. Development review activity remains high and is projected to continue increasing over the five-year forecast period. In 2015-16 Development Services revenues collected were $1.7 million in excess of the budget; $1.2 million (or 75%) of this excess has been allocated to Development Services operating expenditures. The remaining amount of over-realized revenues has been allocated to the Development Services program in order to accomplish the timely processing of development permit applications and perform other related permit processing activities. In 2016-17, Development Services revenues are projected to be $247,000 in excess of the original budget forecast, of which $185,000 (or 75%) is recommended to be either allocated or designated for Development Services expenditures once the revenue is actually realized at the end of 2016-17 fiscal year. A-2 Development review fees paid at the time of an application represent a prepayment for work in conjunction with the development review process. Not all of these fees should be allocated for expenditures in the period they are received because some of the work can only occur when the project is under construction, which may be many months or years after an application is processed and payment is received. Development Services Revenues & Allocation ($ in thousands) 2015-16 75% 2016-17 75% Adopted Budget 3,957 5,126 Mid-Year Revised Budget 4,636 5,373 Variance 679 509 247 185 Year-End Actual 5,624 Variance 1,667 1,250 2016-17 2016-17 Financial Plan Allocation 807 Year-End Manager Allocation 69 Total Allocated 876 Development Services Expenditure Appropriations of 75% in Over-Realized Revenue A-3 FINANCIAL CONDITION SUMMARY 2015-16 General Fund Balance Based on the 2015-16 financial results reported in the Comprehensive Annual Financial Report, the 2015-16 unrestricted fund balance above the 20% policy level is $11.1 million. This amount is a result of one-time expenditure savings and higher than budgeted revenue growth. Actual revenue received was $2.8 million higher than final budget and expenditures were $5.4 million lower than final budget. 2015-16 Local Revenue Measure In 2014, voters approved the extension of the one-half cent local sales tax, known as Measure G, which included a provision to create a Citizen’s Revenue Enhancement Oversight Commission (REOC) to make recommendations to the Council for local revenue measure uses. Staff will continue to seek recommendations from REOC for allocation of any excess local revenue measure funds and return to Council with final recommendations as part of the 2017-19 Financial Plan. A-4 The REOC meets regularly to determine the level of support that will be given to the various programs. These support amounts are primarily based on the cost of certain positions within the program performing basic functions that are identified as being a Measure G priority in order to provide a reasonable and quantifiable sum. Fiscal year 2015-16 original expenditure budget for Local Revenue Measure was approximately $9.3 million. By the end of 2015-16, revenues totaled $7.2 million, expenditures totaled $4.9 million, carryover funds to 2016-17 totaled approximately $4 million, leaving the Local Revenue Measure fund with an approximate unreserved fund balance of $770,000. The 2016-17 Supplemental Budget drew on the $474,000 fund balance of the Local Revenue Measure sub-fund. In addition, 2016-17 revenue is forecasted at $545,000 lower than original budget, thus leaving the Local Revenue Measure sub-fund with a negative $321,000 variance. The Local Revenue Measure is a sub-fund of the General Fund, which means that the General Fund balance will contribute to expenditures originally planned to be funded with Local Revenue Measure resources. The following demonstrates the distribution of the Local Measure expenditures by program. 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 A-5 General Fund Revenues Included in Section B of this report is a summary of revenues by fund and major sources that provides actual results for 2015-16, and original budgeted amounts for 2016-17 along with revised projections and respective variances for each source. Based on this Mid-Year Review, the following are anticipated changes over previously projected figures in the 2016-17 Supplement to the 2015-17 Financial Plan: 1. General Sales Tax. Based on the latest forecast provided by HdL, the City’s sales tax advisor, general sales tax receipts will reflect a decrease of $713,000 compared to the original budget. 2. Local Sales Tax. Using the HdL forecast for Local Sales Tax revenue (Measure Y/G), mid-year revisions reflected a decrease of approximately $495,000 to anticipated receipts of Local Sales Tax revenue compared to original budget. 3. Property Tax. Based on revised estimates from the County, the General Fund’s Property Tax revenues were adjusted to reflect an increase of $256,000. 4. Transient Occupancy Tax. Even though Transient Occupancy Tax receipts compared to previous year actuals increased only by a little over 1% through November, 2016 comparison; the revenue is in line with original budget. 5. Development Review Fees. Revenues collected through December 2016 are well ahead of expectations. The mid-year revised projection reflects adjustments to account for the fees already received and those anticipated to be received during the current year from proposed development activity. Based on the amounts received and staff’s estimate for the rest of the year, development fee revenue is forecast to be $247,000 more than the original budget forecast. Per Council adopted policy, 75% of this revenue may be allocated or designated by the City Manager for Development Review expenditures due to increased workload. 2016-17 General Fund Operating Program Expenditures Section B includes an overview of changes to the operating program budgets. Organized by fund, these schedules include the original budget, re-appropriations for encumbrances and carryovers, and budget changes to-date since approval of the 2015-17 Financial Plan Supplement. Below is a description of items affecting General Fund. General Fund - The revised budget shows a $3.5 million increase in the General Fund operations. Of this amount: $2.7 million represents Year 2 Financial Plan Carryover from 2015-16; and $850,855 pertains to encumbrance roll-over for prior year commitments. Local Revenue Measure Sub-Fund - The revised budget shows a $4 million increase in the Local Revenue Measure Sub-Fund expenditure budget operations. Of this amount: $3.6 million pertains to Capital Improvement Plan project carry forward; and $344,727 was encumbrance roll-over for prior year commitments. A detailed listing of expenditure budget adjustments is provided in Section B of this Mid-Year Report (Summary of Expenditure Budget Adjustments). Other Funds Significant Changes 1. Law Enforcement Grant Fund – In October 2016, an Office of Traffic Safety (OTS) Grant expired, which resulted in a reduction of $272,000 in Operating budget. The City has reapplied for OTS grant funds. A-6 2. Fleet Replacement Fund – Increased revenue and expenditure budget of $7,500 for Green Fleet (Rebate). 3. Transportation Impact Fee Fund - Increased revenue and expenditure budget of $1,095 for a PG&E Change Order. 4. Open Space Fund – A revenue and expenditure budget increase of $6,900 was made for funds related to an Easement Agreement for Rachel Ct Terrace Hill Trail. 5. Affordable Housing Fund – On October 18, 2016, Council approved up to $300,000 from the Affordable Housing Fund to purchase, and resell, an affordable housing unit located at 867 Humbert. 6. Sewer Fund – On October 4, 2016, Council approved a transfer of $756,870 from the Sewer Fund working capital to the project account for the Jennifer Street Sewer Line Replacement. On August 6, 2016, Council also approved $152,000 for the construction phase of the Margarita Lift Station Replacement project. Also, $38,500 in funds were authorized for Legal Services related to California River Watch litigation. 7. Parking Fund. During 2016-17 Supplemental Budget Adoption, Council authorized an additional $100,000 for Parking Supply and Demand Modeling. 8. Parkland Development Fund. During 2016-17 Supplemental Budget Adoption, Council allocated $900,000 to be transferred to Parkland Development fund. This action has no impact on the 2016-17 analysis because it was included in the current year’s budget. Capital Improvement Program Expenditures The Capital Improvement Program (CIP) budget reflects an increase of $43.5 million across all funds. The majority of this amount represents carryover of encumbrances and unexpended balances from 2015-16. Changes are displayed in Section B, summary of Expense Budget Changes. Projected Fund Balances/Working Capital Based on the revised estimates for revenue projections and expenditures, this part of Section B includes a summary of projected changes in financial position for each of the City's funds. The changes in financial position schedules include the actual fund balances/working capital along with the original budget and revised budget projections for 2016-17, and reflect budget changes that have already been approved since the beginning of the fiscal year. The costs and estimated revenues (if any apply) that are associated with the following Mid-Year supplemental funding requests are also reflected in the ending fund balance. Summaries of Revenue & Expenditure Budget Adjustments This part of Section B reflects the budget changes that have taken place to carryover prior year encumbrances, carryover unspent capital project balances and other routine budget changes that do not have significant policy impacts and will not affect budgeted fund balances or working capital that have occurred since the approval of the 2015-17 Financial Plan Supplement in June 2016. Inter-Fund Transactions This portion of Section B reflects actual inter-fund transfers for 2015-16 along with the original budget and revisions for 2016-17. A-7 CONCLUSION This Mid-Year review shows that the City continued to experience slow economic growth for the past six months. Sales tax revenue which is the most volatile source of revenue for the General Fund because it closely correlated with economic fluctuations and which amounts to 37% of total General Fund revenues, showed a slowing down in growth. Due to prudent expenditure management and more favorable than expected revenue trends in 2015-16, the City has one-time funds in the amount of $4.25 million; however, further draw on this fund balance is projected within this fiscal year due to decline in revenue. Unassigned fund balance for General fund including Local Revenue Measure sub-fund is projected at $3.35 million at the end of fiscal year 2016-17. There are no Local Revenue Measure funds not previously allocated available to be considered for allocation. Staff intends to return to Council with the 2017-19 Financial Plan Budget in June 2017 to make recommendations for the use of these one- time funds. The Budget Review Team and Department Heads will be prepared to respond to any questions the Council may have regarding this report at the February 21, 2017 meeting. If you have any questions in the interim, or require additional information, please do not hesitate to the Interim Finance Director, Xenia Bradford, at 805-781-7132. A-8 Section B FINANCIAL CONDITION SUMMARIES REVENUES BY MAJOR CATEGORY AND SOURCE SUMMARY BY FUND Actual Original Revised2015-16 Budget Projection Variance % Change GOVERNMENTAL FUNDSGeneral Fund 60,863,001 58,941,339 58,827,948 (113,391) 0%Local Revenue Measure Fund 7,178,160 7,936,000 7,391,000 (545,000) -7%Special Revenue Funds 3,322,827 3,383,057 3,400,846 17,789 1%Capital Project Funds 11,220,127 11,168,700 14,847,711 3,679,011 33%Total Governmental Funds 82,584,115 81,429,096 84,467,505 3,038,409 4% ENTERPRISE FUNDS & AGENCY FUNDSWater Fund 20,430,353 19,337,708 19,337,708Sewer Fund 16,644,012 15,868,500 15,868,500Parking Fund 7,580,158 4,433,800 4,433,800Transit Fund 3,559,492 3,747,051 3,747,051Boysen Ranch Convervation Fund 1,800 1,800Whale Rock Reservoir Fund 1,438,507 1,512,705 1,512,705Total Enterprise Funds 49,652,521 44,901,564 44,901,564 TOTAL $132,236,636 $126,330,660 $129,369,069 3,038,409 2% 2016-17 B-1 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised2015-16 Budget Projection Variance % Change GENERAL FUND Tax & Franchise RevenuesSales & use taxGeneral 17,498,218 17,297,334 16,584,000 (713,334)-4%Public safety (Proposition 172)405,066 428,443 428,443Property tax 10,186,858 10,510,790 10,767,000 256,210 2%Property tax in lieu of VLF 4,113,244 4,365,153 4,365,153Transient occupancy tax 7,113,466 7,186,067 7,186,067Utility users tax 5,413,720 5,562,000 5,505,703 (56,297)-1%Franchise fees 1,537,922 1,557,383 1,540,364 (17,019)-1%Business tax certificates 2,491,516 2,395,090 2,500,000 104,910 4%Real property transfer tax 366,088 301,000 373,000 72,000 24%Total Tax & Franchise Revenues 49,126,097 49,603,260 49,249,730 (353,530)-1% Fines & ForfeituresVehicle code fines 154,844 120,000 120,000Other fines & forfeitures 17,509 36,000 36,000Total Fines & Forfeitures 172,353 156,000 156,000 Investment and Property RevenuesInvestment earnings 373,460 120,300 120,300Rents & concessions 189,196 161,400 161,400Total Investment & Property 562,656 281,700 281,700 Subventions & GrantsMotor vehicle in-lieu 18,480Homeowners & other in-lieu taxes 75,043 74,000 74,000Other in-lieu taxes 18,695 22,000 15,000 (7,000) -32%SB 90 reimbursements 108,718Police training (POST)15,667 40,000 40,000Mutual aid reimbursements 949,584COPS grant AB3229 143,942 100,000 100,000Zone 9 reimbursements 79,094 85,000 85,000Other state & federal grants 129,645 2,000 2,000Total Subventions & Grants 1,538,869 323,000 316,000 (7,000)-2% Service ChargesPolice ServicesAccident reports 2,647 3,000 3,000Collision investigation 9,869 10,000 10,000Alarm permits and false alarm fees 122,175 80,000 80,000DUI cost recovery 40,535 20,000 20,000Tow release fee 12,069 12,000 12,000Booking fee recoveryTobacco permit fees 20,503 20,000 20,000Administrative citations 155,657 115,000 115,000 2016-17 B-2 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised2015-16 Budget Projection Variance % Change GENERAL FUNDParking citations 76,549 80,000 80,000Other police services 194,457 110,300 110,300Total Police Services 634,461 450,300 450,300 Fire ServicesCal Poly fire services 273,391 276,125 276,125Medical emergency recovery 174,620 173,000 173,000Fire safety/haz mat permits 135,909 130,000 130,000Multi-dwelling unit inspections 195,378 194,000 194,000CUPA fees 100,567 97,000 97,000Other fire services 24,627 8,000 8,000Total Fire Services 904,491 878,125 878,125 Development ReviewPlanning & zoning fees 731,828 490,913 838,223 347,310 71%Building Permits 1,585,825 1,714,988 1,972,988 258,000 15%Construction plan check & inspection 788,496 664,620 534,422 (130,198)-20%Infrastructure plan check & inspections 845,203 525,050 474,000 (51,050)-10%Encroachment permits 165,902 140,626 126,953 (13,673)-10%Fire plan check & inspections 396,607 350,000 423,500 73,500 21%Credit Card Fees (67,692)(97,464)(24,374)73,090 -75%Other Development Fees 936,079 891,990 881,000 (10,990)-1%Rental Inspection Fees 242,046 445,000 146,150Total Development Review 5,624,294 5,125,723 5,372,862 247,139 5%Parks & RecreationAdult athletic fees 113,861 122,400 122,400Youth athletic fees 25,000 33,700 33,700Skate park fees 2,000 2,000Instruction fees 93,780 91,000 91,000Special event fees 88,456 92,700 92,700Rental & use fees 181,572 161,500 161,500Children services 772,553 600,000 600,000Teens & seniors 11,216 1,500 1,500Aquatics200,236 246,700 246,700Golf263,870 291,700 291,700Other recreation revenues 8,797 3,000 3,000Total Parks & Recreation 1,759,342 1,646,200 1,646,200 General GovernmentBusiness license 379,571 389,531 389,531Sales of publications 2,333 2,500 2,500Other service charges 32,252 30,000 30,000Total General Government 414,156 422,031 422,031Total Service Charges 9,336,744 8,522,379 8,769,518 247,139 3% Other RevenuesInsurance refunds 17,295 20,000 20,000Other revenues 108,987 35,000 35,000Total Other Revenues 126,282 55,000 55,000 Total General Fund $60,863,001 $58,941,339 $58,827,948 ($113,391)0% 2016-17 B-3 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised2015-16 Budget Projection Variance % Change LOCAL REVENUE MEASURE FUND Measure G 7,178,160 7,886,000 7,391,000 (495,000)-6%Investment & Property Revenues 9,043 50,000 (50,000) -100%Total Local Revenue Measure Fund 7,187,203 7,936,000 7,391,000 (545,000) -7% SPECIAL REVENUE FUNDS Downtown Business Improvement District FundInvestment & Property RevenuesService Charges 222,111 214,000 214,000Other RevenuesTotal Downtown BID Fund 222,111 214,000 214,000 Tourism Business Improvement District FundInvestment & Property Revenues 1,723 1,100 1,100Other RevenuesService Charges 1,429,190 1,433,975 1,433,975Total Tourism BID Fund 1,430,913 1,435,075 1,435,075 Community Development Block Grant FundInvestment & Property RevenuesSubventions & Grants 304,004 364,964 597,863 232,899 64%Other Revenues 304,004 364,964 597,863 232,899 1 Gas Tax FundSubventions & Grants 1,033,757 965,000 965,000 Transportation Development Act FundSubventions & Grants 40,531 41,100 41,100 Law Enforcement Grant FundInvestment & Property Revenues 12Subventions & Grants 206,831 320,818 105,708 (215,110) -67%Service Charges 1,782Total Law Enforcement Grant Fund 208,625 320,818 105,708 (215,110) Public Art Contributions FundInvestment & Property Revenues 2,892 2,100 2,100Service Charges 40,000 40,000Other Revenues 79,994Total Public Art Contributions Fund 82,886 42,100 42,100Total Special Revenue Funds $3,322,827 $3,383,057 $3,400,846 17,789 1% 2016-17 B-4 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised2015-16 Budget Projection Variance % Change CAPITAL PROJECT FUNDS General Purpose CIPSubventions & GrantsState of CaliforniaTraffic safety grantSHA/USHASafe routes to school grantSLTPP/STP grantSTP/SHA - RRTC 8,381,533 9,060,000 12,124,611 3,064,611Other state grantsFederal GovernmentHighway & bridge rehabilitation &replacement (HBRR)44,292Transportation enhancement (TEA)Other federal grants 59,408Service ChargesZone 9 reimbursements 88,894Other RevenuesContributionsOther Revenue 2,506Total General Purpose CIP 8,576,634 9,060,000 12,124,611 3,064,611 34% Parkland Development FundInvestment & Property Revenues 5,756 3,000 3,000Subventions & GrantsService ChargesPark in-lieu fees 174,799Dwelling unit charge 7,950Other Revenues 34,320Total Parkland Development Fund 222,825 3,000 3,000 Transportation Impact Fee FundInvestment & Property Revenues 107,807 1,000 1,000Subventions & GrantsService ChargesImpact Fees 1,356,158 75,000 75,000Other RevenuesTotal Transportation Impact Fee Fund 1,463,965 76,000 76,000 Fleet Replacement FundInvestment & Property Revenues 13,625 6,000 6,000Other Revenues Sale of surplus property 69,220 10,000 10,000Green Vehicle Rebates 7,500Total Fleet Replacement Fund 82,845 16,000 23,500 7,500 47% 2016-17 B-5 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised2015-16 Budget Projection Variance % Change CAPITAL PROJECT FUNDS Open Space Protection FundInvestment & Property Revenues 4,101Subventions & Grants 2,000,000 2,600,000 600,000Service Charges 47,369 6,900 6,900Total Open Space Protection Fund 51,470 2,000,000 2,606,900 606,900 Airport Area Impact Fee FundInvestment & Property Revenues 8,248 1,000 1,000Service Charges 134,210Total Airport Area Impact Fee Fund 142,458 1,000 1,000 Affordable Housing FundInvestment & Property Revenues 34,415 8,000 8,000Subventions & GrantsService Charges 625,506Total Affordable Housing Fund 659,921 8,000 8,000 Los Osos Valley Road Sub-Area Fee FundInvestment & Property Revenues 2,586 1,700 1,700Service Charges 14,661Total LOVR Sub-Area Fee Fund 17,246 1,700 1,700 Information Technology Replacement FundInvestment & Property Revenues 2,765 1,500 1,500Subventions & Grants 73,861Service ChargesTotal IT Replacement Fund 2,765 1,500 1,500 Major Facility Replacement FundInvestment & Property Revenues 606 500 500Service Charges 22,000Total IT Replacement Fund 22,606 500 500 Infrastructure Investment FundInvestment & Property Revenues 1,660 1,000 1,000Total IT Replacement Fund 1,660 1,000 1,000 Total Capital Project Funds $11,220,127 $11,168,700 $14,847,711 3,679,011 33% TOTAL-GOVERNMENTAL FUNDS $82,593,157 $81,429,096 $84,467,505 3,038,409 4% 2016-17 B-6 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised2015-16 Budget Projection Variance % Change ENTERPRISE & AGENCY FUNDS Water FundInvestment & Property Revenues 322,538 50,000 50,000Impact Fees 1,542,268 800,000 800,000Service Charges 18,302,445 18,437,708 18,437,708Other Revenues 263,101 50,000 50,000Total Water Fund 20,430,353 19,337,708 19,337,708 Sewer FundInvestment & Property Revenues 388,885 50,000 50,000Impact Fees 502,393 250,000 250,000Service Charges 15,689,263 15,531,000 15,531,000Other Revenues 63,471 37,500 37,500Total Sewer Fund 16,644,012 15,868,500 15,868,500 Parking FundFines & Forfeitures 579,823 669,900 669,900Investment & Property Revenues 333,687 48,200 48,200Service Charges 6,263,285 3,215,100 3,215,100Lease Revenue 403,630 500,500 500,500Other Revenues (266)100 100Total Parking Fund 7,580,158 4,433,800 4,433,800 Transit FundInvestment & Property Revenues 11,355 5,800 5,800Subventions & Grants 2,888,820 3,046,270 3,046,270Service Charges 659,292 690,381 690,381Other Revenues 25 4,600 4,600Total Transit Fund 3,559,492 3,747,051 3,747,051 Boysen Ranch Conservation FundInvestment & Property Revenues 2,981 1,800 1,800Subventions & GrantsService ChargesTotal Boysen Ranch Fund 2,981 1,800 1,800 Whale Rock CommissionInvestment & Property Revenues 23,698 1,000 1,000Service Charges 1,414,066 1,510,205 1,510,205Other Revenues 743 1,500 1,500Total Whale Rock Commission Fund 1,438,507 1,512,705 1,512,705 Total Enterprise & Agency Funds $49,655,503 $44,901,564 $44,899,764 ($1,800)0% TOTAL - ALL FUNDS $132,248,660 $126,330,660 $129,367,269 $3,036,609 2% 2016-17 B-7 CHANGES IN FINANCIAL POSITION ALL FUNDS COMBINED Actual Original Revised 2015-16 Budget Budget RevenuesTax Revenues 49,140,388 57,489,259 56,640,730 (848,529) -1%Fines and Forfeitures 752,176 825,900 825,900 - Investment and Property Revenues 1,640,080 515,400 464,400 (51,000) -10%Subventions and Grants 14,660,801 16,121,152 19,796,552 3,675,400 23%Service ChargesGovernmental Funds 13,358,191 10,285,354 10,539,393 254,039 2%Enterprise Funds 41,338,105 39,424,789 39,424,789 - Trust and Agency Revenues 1,438,507 1,512,705 1,512,705 - Other Revenues 673,898 158,600 158,600 - Total Revenues 123,002,146 126,333,159 129,363,069 3,029,910 2% Expenditures Operating ProgramsPublic Safety 25,718,455 26,589,473 26,902,897 313,424 1%Public Utilities 19,767,227 23,590,549 24,543,754 953,205 4%Transportation 7,972,922 9,330,808 9,883,796 552,988 6%Leisure, Cultural & Social Services 7,428,198 7,912,032 8,619,751 707,719 9%Community Development 9,957,712 11,424,283 11,958,749 534,466 5%General Government 17,209,243 19,627,724 20,435,677 807,953 4%Total Operating Programs 88,053,756 98,474,869 102,344,624 3,869,755 4% Capital Improvement Plan Projects 27,023,834 29,944,336 72,506,913 42,562,577 142% Debt Service 7,615,865 7,844,645 7,844,645 - Total Expenditures 122,693,456 136,263,850 182,696,182 46,432,332 34%- Other Sources (Uses)- Adjustment to Working Capial - - - - Operating Transfers In 10,123,214 11,099,475 11,099,475 - Operating Transfers Out (8,514,070) (11,098,475) (11,998,475) (900,000) 8%Proceeds from Debt Financings - 1,166,600 1,166,600 - Projected MOA Adjustments - (15,398) - 15,398 -100%Other Sources (Uses)- - - - Expenditure Savings - 1,428,944 1,428,944 (0) 0%Total Other Sources (Uses)1,609,144 2,581,146 1,696,544 (884,602) -34% Revenues and Other Sources Over (Under)Expenditures and Other Uses 1,917,834 (7,349,545) (51,636,568) (44,287,024) 603%- Fund Balance/Working Capital,Beginning of Year 108,855,305 69,605,170 115,471,572 45,866,402 66% Fund Balance/Working Capital,End of YearPrior Year Restatement (709,020) - - - Reserved for Debt Service 2,043,222 2,043,222 2,043,222 - Unreserved 108,020,897 60,212,403 61,791,781 1,579,378 3%- Total Fund Balance/Working Capital 110,773,139 62,255,625 63,835,003 1,579,378 3% 2016-17 Variance % change B-8 CHANGES IN FINANCIAL POSITION ALL GOVERNMENTAL FUNDS COMBINED Actual Original Revised 2015-16 Budget Budget RevenuesTax Revenues 49,140,388 57,489,259 56,640,730 (848,529) -1%Fines and Forfeitures 172,353 156,000 156,000 - Investment and Property Revenues 758,880 358,600 308,600 (50,000) -14%From Other Governments 11,771,981 13,074,882 16,750,282 3,675,400 28%Service Charges 13,358,191 10,285,354 10,539,393 254,039 2%Other Revenues 335,059 65,000 65,000 - Total Revenues 75,536,851 81,429,095 84,460,005 3,030,910 4%- Expenditures - Operating Programs - Public Safety 25,718,455 26,589,473 26,902,897 313,424 1%Transportation 3,317,177 3,694,341 4,050,322 355,981 10%Leisure, Cultural & Social Services 7,428,198 7,912,032 8,619,751 707,719 9%Community Development 9,957,712 11,424,283 11,958,749 534,466 5%General Government 17,209,243 18,617,224 20,425,177 1,807,953 10%Total Operating Programs 63,630,785 68,237,353 71,956,896 3,719,543 5%Reimbursed Expenditures (4,008,992) (4,164,747) (4,164,747) - Total Operating Expenditures 59,621,793 64,072,606 67,792,149 3,719,543 6% Capital Improvement Plan Projects 19,102,153 22,568,512 40,473,434 17,904,922 79% Debt Service 3,060,964 3,245,866 3,245,866 - Total Expenditures 81,784,910 89,886,984 111,511,449 21,624,465 24% Other Sources (Uses)Operating Transfers In 9,950,118 11,099,475 11,099,475 - Operating Transfers Out (8,514,070) (10,046,912) (10,946,912) (900,000) 9%Proceeds from Debt Financings - 1,166,600 1,166,600 - Projected MOA Adjustments - - - Expenditure Savings - 1,428,944 1,428,944 (0) 0%Total Other Sources (Uses)1,436,048 3,648,107 2,748,107 (900,000) -25% Revenues and Other Sources Over (Under)- - - - Expenditures and Other Uses (4,812,011) (4,809,782) (24,303,337) (19,493,555) 405%- Fund Balance, Beginning of Year 48,154,267 27,014,391 50,922,843 23,908,452 89%Prior Year Restatement (709,020) - - - 47,445,247 27,014,391 50,922,843 23,908,452 89%Fund Balance, End of Year - Reserved for Debt Service 2,043,222 2,043,222 2,043,222 - Unreserved 40,590,014 20,161,387 24,576,284 4,414,897 Total Fund Balance 42,633,236 22,204,609 26,619,506 4,414,897 20% 2016-17 Variance % change B-9 CHANGES IN FINANCIAL POSITION ALL ENTERPRISE AND AGENCY FUNDS COMBINED Actual Original Revised 2015-16 Budget Budget RevenuesFines and Forfeitures 579,823 669,900 669,900 - Investment and Property Revenues 881,200 156,800 155,800 (1,000) -1%From Other Governments 2,888,820 3,046,270 3,046,270 - Service Charges 41,338,105 39,424,789 39,424,789 - Other Revenues 338,840 93,600 93,600 - Trust and Agency Revenues 1,438,507 1,512,705 1,512,705 - Total Revenues 47,465,294 44,904,064 44,903,064 (1,000) 0%- Expenditures - Operating Programs - Public Utilities 19,767,227 23,590,549 24,543,754 953,205 4%Transportation 4,655,745 5,636,467 5,833,474 197,007 3%Leisure, Cultural & Social Services - - - - General Government 4,008,992 5,175,247 4,175,247 - Total Operating Programs 28,431,964 34,402,263 34,552,475 150,212 0% Capital Improvement Plan Projects 7,921,680 7,375,824 32,033,478 24,657,654 334% Debt Service 4,554,901 4,598,779 4,598,779 - Total Expenditures 40,908,545 46,376,866 71,184,732 24,807,866 53%- Other Sources (Uses)- Adjustment to Working Capial - - - - Operating Transfers In 173,096 - - - Proceeds from Debt Financings - - - - Operating Transfers Out (1,436,048) (1,051,563) (1,051,563) - Projected MOA Adjustments (15,398) Other Sources (Uses)- - - - Total Other Sources (Uses)(1,262,952) (1,066,961) (1,051,563) 15,398 - Revenues and Other Sources Over (Under)- Expenditures and Other Uses 5,293,797 (2,539,763) (27,333,231) (24,793,468) 976%- Working Capital, Beginning of Year 61,410,058 42,590,779 64,548,728 21,957,949 52%- Working Capital, End of Year 66,703,855 40,051,016 37,215,497 (2,835,519) -7% 2016-17 Variance % change B-10 CHANGES IN FINANCIAL POSITION GENERAL FUND Actual Original Revised 2015-16 Budget BudgetRevenuesTax Revenues 49,140,388 49,603,259 49,249,730 (353,529) -1%Fines and Forfeitures 172,353 156,000 156,000 - Investment and Property Revenues 562,656 281,700 281,700 - Subventions and Grants 1,538,869 323,000 316,000 (7,000) -2%Service Charges 9,322,456 8,522,379 8,769,518 247,139 3%Other Revenues 149,220 55,000 55,000 - Total Revenues 60,885,943 58,941,338 58,827,948 (113,390) 0% Expenditures Operating Programs Public Safety 24,870,762 25,457,225 25,985,759 528,534 2%Transportation 2,462,851 2,378,572 2,734,553 355,981 15%Leisure, Cultural & Social Services 7,233,480 7,703,845 8,137,529 433,684 6%Community Development 7,741,381 9,384,956 9,826,194 441,238 5%General Government 15,080,806 18,617,224 20,425,177 1,807,953 10%Total Program Expenditures 57,389,279 63,541,822 67,109,211 3,567,389 6%Reimbursed Expenditures (4,008,992) (4,164,747) (4,164,747) - Total Expenditures 53,380,287 59,377,075 62,944,464 3,567,389 6% Other Sources (Uses)Operating Transfers In 2,920,748 2,353,342 2,353,342 - Proceeds from Debt Issuance - Operating Transfers Out (6,975,470) (8,705,233) (9,605,233) (900,000) 10%Expenditure Savings 1,428,944 1,428,944 - Other Sources - - - Total Other Sources (Uses)(4,054,722) (4,922,947) (5,822,947) (900,000) 18% Revenues and Other Sources Over (Under)Expenditures and Other Uses 3,450,933 (5,358,684) (9,939,463) (4,580,779) 85%Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 22,140,527 17,481,628 24,882,440 7,400,812 42%Prior Year Restatement (709,020) - Fund Balance, End of Year sub-total 24,882,440 12,122,944 14,942,977 2,820,033 23%Fund Balance Components:Designated Reserves (4,112,465) (1,153,126) (489,000) 664,126 -58%Policy Reserve Level @ 20%:(11,475,178) (10,851,000) (10,851,000) - Amount Over (Under) Policy Reserve:9,294,797 118,818 3,602,977 3,484,159 2932% 2016-17 Variance % change B-11 CHANGES IN FINANCIAL POSITION LOCAL REVENUE MEASURE SUB-FUND Actual Original Revised 2015-16 Budget Budget RevenuesTax Revenues 7,178,160 7,886,000 7,391,000 (495,000) -6%Investment & Property Revenue 9,043 50,000 - (50,000) -100%Total Revenues 7,187,203 7,936,000 7,391,000 (545,000) -7%- - Expenditures - Operating Programs - Public Safety 705,843 812,655 812,655 - Transportation 854,326 1,315,769 1,315,769 - Leisure, Cultural & Social Services 194,718 208,187 208,187 - Community Development 328,737 5,000 5,000 - General Government - - - - Capital Improvement Plan Projects 2,797,460 6,068,100 10,030,836 3,962,736 65%Total Expenditures 4,881,084 8,409,711 12,372,447 3,962,736 47%- Other Sources (Uses)- Operating Transfers Out - - - - Total Other Sources (Uses)- - - - - Revenues and Other Sources Over (Under)- Expenditures and Other Uses 2,306,119 (473,711) (4,981,447) (4,507,736) 952%- Fund Balance, Beginning of Year 2,426,279 545,935 4,732,398 4,186,463 767%Fund Balance, End of Year sub-total*4,732,398 72,224 (249,050) (321,274) -445%Fund Balance Components:Reserved (3,962,736) Unreserved 769,662 *20% Reserve fund balance is fully reported/calculated within General Fund Changes in Financial Position. 2016-17 Variance % change B-12 CHANGES IN FINANCIAL POSITION INSURANCE BENEFIT Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 987 - - Service Charges - Total Revenues 987 - - - ExpendituresOperating ProgramsGeneral Government 2,128,437 1,000,000 1,000,000 - Capital Improvement Plan Projects - - Total Expenditures 2,128,437 1,000,000 1,000,000 - Other Sources (Uses)Operating Transfer In 2,124,000 1,739,898 1,739,898 - Operating Transfer Out - - Total Other Sources (Uses)2,124,000 1,739,898 1,739,898 - Revenues and Other Sources Over (Under)Expenditures and Other Uses (3,449) 739,898 739,898 - Fund Balance, Beginning of Year 343,301 343,301 339,852 (3,449) -1% Fund Balance, End of Year 339,852 1,083,199 1,079,750 (3,449) 2016-17 Variance % change B-13 CHANGES IN FINANCIAL POSITION DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues - Service Charges - Assessments 222,111 214,000 214,000 Other Service Charges - - Total Service Charges 222,111 214,000 214,000 Other RevenuesTotal Revenues 222,111 214,000 214,000 - - Expenditures - Operating Programs - Community Development 222,111 214,000 214,000 - Capital Improvement Plan Projects - - Total Expenditures 222,111 214,000 214,000 - - Other Sources (Uses)- Operating Transfer In - Operating Transfer Out - - Total Other Sources (Uses)- - - - - Revenues and Other Sources Over (Under)- Expenditures and Other Uses - - - - - Fund Balance, Beginning of Year 1,122 1,122 1,122 - Prior Year Restatement - Fund Balance, End of Year 1,122 1,122 1,122 - Variance % change 2016-17 B-14 CHANGES IN FINANCIAL POSITION TOURISM BUSINESS IMPROVEMENT DISTRICT FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues 1,723 1,100 1,100 - Service Charges 1,429,190 1,433,975 1,433,975 - Total Revenues 1,430,913 1,435,075 1,435,075 - - Expenditures - Operating Programs - Community Development 1,395,253 1,406,395 1,499,624 93,229 7%Capital Improvement Plan Projects - - Total Expenditures 1,395,253 1,406,395 1,499,624 93,229 7%- Other Sources (Uses)- Operating Transfer In - Operating Transfer Out (28,412) (28,679) (28,679) - Total Other Sources (Uses)(28,412) (28,679) (28,679) - - Revenues and Other Sources Over (Under)- Expenditures and Other Uses 7,247 1 (93,228) (93,229) -100%- Fund Balance, Beginning of Year 333,028 270,254 340,275 70,021 26%Prior Year Restatement - Fund Balance, End of Year 340,275 270,255 247,047 (23,208) -9% 2016-17 Variance % change B-15 CHANGES IN FINANCIAL POSITION COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Actual Original Revised 2015-16 Budget BudgetRevenuesFrom Other GovernmentsCDBG Allocation 304,004 364,964 597,863 232,899 64%Other Revenues - - - - Total Revenues 304,004 364,964 597,863 232,899 64% ExpendituresOperating ProgramsCommunity Development 270,230 413,932 413,932 - General GovernmentTotal Operating Programs 270,230 413,932 413,932 - Capital Improvement Plan Projects 164,853 105,000 337,899 232,899 222%Debt ServiceTotal Expenditures 435,083 518,932 751,831 232,899 45% Other Sources (Uses)Operating Transfer In 147,487 153,969 153,969 - Total Other Sources (uses)147,487 153,969 153,969 - Revenues and Other Sources Over (Under)Expenditures and Other Uses 16,408 1 1 - Fund Balance, Beginning of Year (83) (83) 16,325 16,408 -19769% Fund Balance, End of Year 16,325 (82) 16,326 16,408 -20010% Variance % change 2016-17 B-16 CHANGES IN FINANCIAL POSITION GAS TAX FUND Actual Original Revised 2015-16 Budget BudgetRevenuesFrom Other Governments -Gasoline Tax 1,033,757 965,000 965,000 - Total Revenues 1,033,757 965,000 965,000 - Other Sources (Uses)Operating Transfers Out (1,033,757) (965,000) (965,000) - Total Other Sources (Uses)(1,033,757) (965,000) (965,000) - Revenues and Other Sources Over (Under)Expenditures and Other Uses - - - - Fund Balance, Beginning of Year - - - - Fund Balance, End of Year - - - - In March 2010,the Legislature passed ABx8 6 and ABx8 9, which contained the provisions for a swap of Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). Variance % change 2016-17 B-17 CHANGES IN FINANCIAL POSITION TRANSPORTATION DEVELOPMENT ACT (TDA) FUND Actual Original Revised 2015-16 Budget BudgetRevenuesSubventions and Grants 40,531 41,100 41,100 - Total Revenues 40,531 41,100 41,100 - Other Sources (Uses)Operating Transfers Out (40,531) (41,100) (41,100) - Total Other Sources (Uses)(40,531) (41,100) (41,100) - Revenues and Other Sources Over (Under)Expenditures and Other Uses - - - - Fund Balance, Beginning of Year - - - - Fund Balance, End of Year - - - - Variance % change 2016-17 B-18 CHANGES IN FINANCIAL POSITION LAW ENFORCEMENT GRANTS FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues 12 - - - Subventions and Grants 206,831 320,818 105,708 (215,110) -67%Service Charges 1,782 - - - 100%Total Revenues 208,625 320,818 105,708 (215,110) ExpendituresOperating ProgramsPublic Safety 141,850 319,593 104,483 (215,110) -67%Capital Improvement Plan Projects 60,169 69,000 69,607 607 100%Total Expenditures 60,169 388,593 174,090 (214,503) -55% Other Sources (Uses)Operating Transfer In - - - - Operating Transfer Out - - - - 100%Total Other Sources (Uses)- - - Revenues and Other Sources Over (Under)Expenditures and Other Uses 148,456 (67,775) (68,382) (607) 100% Fund Balance, Beginning of Year 16,886 28,639 165,342 136,703 477% Fund Balance, End of Year 165,342 (39,136) 96,960 136,096 -348% Variance % change 2016-17 B-19 CHANGES IN FINANCIAL POSITION PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues 2,892 2,100 2,100 - Service ChargesIn-lieu fees 40,000 40,000 - Other Revenues 79,994 - - - Total Revenues 82,886 42,100 42,100 - ExpendituresOperating ProgramsLeisure, Cultural & Social Services - 274,035 274,035 Capital Improvement Plan Projects 58,321 39,900 40,061 161 0%Total Expenditures 58,321 39,900 314,096 274,196 Other Sources (Uses)Operating Transfer In 36,400 39,900 39,900 - Operating Transfer OutTotal Other Sources (Uses)36,400 39,900 39,900 - Revenues and Other Sources Over (Under)Expenditures and Other Uses 60,965 42,100 (232,096) (274,196) -651% Fund Balance, Beginning of Year 362,844 86,924 423,809 336,885 Fund Balance, End of Year 423,809 129,024 191,713 62,689 49% Variance 2016-17 % change B-20 CHANGES IN FINANCIAL POSITION GENERAL PURPOSE CIP Actual Original Revised 2015-16 Budget BudgetRevenuesSubventions and Grants 8,574,127 9,060,000 12,124,611 3,064,611 34%Service Charges - - - Other Revenues 2,304 - - - Total Revenues 8,576,432 9,060,000 12,124,611 3,064,611 34% ExpendituresCapital Improvement Plan Projects 9,972,831 9,460,000 15,499,077 6,039,077 64%Total Expenditures 9,972,831 9,460,000 15,499,077 6,039,077 64% Other Sources (Uses)Operating Transfers In 281,733 439,900 439,900 - Operating Transfers Out (53,900) (39,900) (39,900) - Other Sources (Uses)Sale of Surplus PropertyTotal Other Sources (Uses)227,833 400,000 400,000 - Revenues and Other Sources Over (Under)Expenditures and Other Uses (1,168,566) - (2,974,466) (2,974,466) Fund Balance, Beginning of Year 4,352,266 173,253 3,183,700 3,010,447 Prior Year RestatementFund Balance, End of Year 3,183,700 173,253 209,234 35,981 21% 2016-17 Variance % change B-21 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues 5,756 3,000 3,000 - Subventions and Grants - - - Service Charges - Park In-Lieu Fees 174,799 - - - Dwelling Unit Fees 7,950 - - - Other Revenues 34,320 - - - Total Revenues 222,825 3,000 3,000 - ExpendituresCapital Improvement Plan Projects 1,572 - 252,697 252,697 Total Expenditures 1,572 - 252,697 252,697 Other Sources (Uses)Operating Transfers In - 900,000 900,000 Operating Transfers OutTotal Other Sources (Uses) Revenues and Other Sources Over (Under)Expenditures and Other Uses 221,253 3,000 (249,697) (252,697) 1% Fund Balance, Beginning of Year 620,558 369,289 841,811 472,522 Fund Balance, End of Year 841,811 372,289 592,113 219,824 59% % change Variance 2016-17 B-22 CHANGES IN FINANCIAL POSITION TRANSPORTATION IMPACT FEE FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 107,807 1,000 1,000 - Subventions and Grants - Impact Fees 1,356,158 75,000 75,000 - Other Revenues - Total Revenues 1,463,965 76,000 76,000 - ExpendituresCapital Improvement Plan Projects 3,803,935 300,000 3,734,040 3,434,040 1145%Total Expenditures 3,803,935 300,000 3,734,040 3,434,040 1145% Other Sources (Uses)Proceeds from Debt Financing - Operating Transfer InOperating Transfer Out (320,000) (250,000) (250,000) - Total Other Sources (Uses)(320,000) (250,000) (250,000) - Revenues and Other Sources Over (Under)Expenditures and Other Uses (2,339,970) (474,000) (3,908,040) (3,434,040) Fund Balance, Beginning of Year 8,879,649 1,938,175 6,539,679 4,601,504 237%Prior Year RestatementFund Balance, End of Year 6,539,679 1,464,175 2,631,639 1,167,464 80% 2016-17 Variance % change B-23 CHANGES IN FINANCIAL POSITION FLEET REPLACEMENT FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues 13,625 6,000 6,000 - Service Charges - - - Other RevenuesSale of Surplus Property 69,220 10,000 10,000 - Green Vehicle Rebates - 7,500 7,500 Total Revenues 82,845 16,000 23,500 7,500 47% ExpendituresCapital Improvement Plan Projects 686,387 1,694,400 2,154,331 459,931 27%Total Expenditures 686,387 1,694,400 2,154,331 459,931 27% Other Sources (Uses)Proceeds from Debt Financing - 1,166,600 1,166,600 - Operating Transfers Out - - - Operating Transfers In 384,100 - - - Total Other Sources (Uses)384,100 1,166,600 1,166,600 - Revenues and Other Sources Over (Under)Expenditures and Other Uses (219,442) (511,800) (964,231) (452,431) 88% Fund Balance, Beginning of Year 2,029,047 1,326,425 1,809,605 483,180 36% Fund Balance, End of Year 1,809,605 814,625 845,374 30,749 4% % change 2016-17 Variance B-24 CHANGES IN FINANCIAL POSITION OPEN SPACE PROTECTION FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 4,101 - - Subventions and Grants 2,000,000 2,600,000 600,000 30%Service Charges 47,369 - 6,900 6,900 Other Revenues - - - Total Revenues 51,470 2,000,000 2,606,900 606,900 30% ExpendituresCapital Improvement Plan Projects 32,743 2,000,000 2,970,881 970,881 49%Total Expenditures 32,743 2,000,000 2,970,881 970,881 49% Other Sources (Uses)Operating Transfer In - - - Operating Transfer Out - - Total Other Sources (Uses)- - - - Revenues and Other Sources Over (Under)Expenditures and Other Uses 18,726 - (363,981) (363,981) - Fund Balance, Beginning of Year 530,623 133,899 549,349 415,450 310%- - - Fund Balance, End of Year 549,349 133,899 185,369 51,470 38% 2016-17 % change Variance B-25 CHANGES IN FINANCIAL POSITION AIRPORT AREA IMPACT FEE FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 8,248 1,000 1,000 - Service Charges 134,210 - - - Total Revenues 142,458 1,000 1,000 - ExpendituresCapital Improvement Plan Projects - - 56,669 56,669 Total Expenditures - - 56,669 56,669 Other Sources (Uses)Operating Transfer Out Revenues and Other Sources Over (Under)Expenditures and Other Uses 142,458 1,000 (55,669) (56,669) -5667% Fund Balance, Beginning of Year 937,498 881,829 1,079,956 198,127 22% Fund Balance, End of Year 1,079,956 882,829 1,024,287 141,458 16% 2016-17 % change Variance B-26 CHANGES IN FINANCIAL POSITION AFFORDABLE HOUSING FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 34,415 8,000 8,000 - Subventions and Grants - - - Service Charges 625,506 - - - Total Revenues 659,921 8,000 8,000 - ExpendituresCapital Improvement Plan Projects 636,978 8,000 1,524,227 1,516,227 Total Expenditures 636,978 8,000 1,524,227 1,516,227 Transfer Out (62,000) (17,000) (17,000) - Revenues and Other Sources Over (Under)Expenditures and Other Uses (39,057) (9,000) (1,533,227) (1,524,227) 16936% Fund Balance, Beginning of Year 2,601,882 739,677 2,562,825 1,823,148 246% Fund Balance, End of Year 2,562,825 730,677 1,029,598 298,921 41% 2016-17 Variance % change B-27 CHANGES IN FINANCIAL POSITION LOS OSOS VALLEY ROAD SUB-AREA FEE FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 2,586 1,700 1,700 - Service Charges 14,661 - - - Total Revenues 17,246 1,700 1,700 - ExpendituresCapital Improvement Plan Projects - - - Total Expenditures - - - - Other Sources (Uses)Operating Transfer InOperating Transfer Out Revenues and Other Sources Over (Under)Expenditures and Other Uses 17,246 1,700 1,700 - Fund Balance, Beginning of Year 146,723 148,423 163,969 15,546 10% Fund Balance, End of Year 163,969 150,123 165,669 15,546 10% % change Variance 2016-17 B-28 CHANGES IN FINANCIAL POSITION INFORMATION TECHNOLOGY REPLACEMENT Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 2,765 1,500 1,500 - Subventions and Grants 73,861 - Service ChargesTotal Revenues 2,765 1,500 1,500 - ExpendituresCapital Improvement Plan Projects 481,374 2,318,512 2,803,400 484,888 21%Total Expenditures 481,374 2,318,512 2,803,400 484,888 21% Other Sources (Uses)Operating Transfer In 617,000 2,621,000 2,621,000 - Debt Proceeds 688,500 - Total Sources (Uses)1,305,500 2,621,000 2,621,000 - Revenues and Other Sources Over (Under)Expenditures and Other Uses 826,891 303,988 (180,900) (484,888) -160% Fund Balance, Beginning of Year (159,846) 435,893 667,045 231,152 53% Fund Balance, End of Year 667,045 739,881 486,146 (253,735) -34% 2016-17 Variance % change B-29 CHANGES IN FINANCIAL POSITION MAJOR FACILITY REPLACEMENT Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 606 500 500 - Service Charges Donation 22,000 - Total Revenues 22,000 500 500 - ExpendituresCapital Improvement Plan Projects 405,530 504,600 749,710 245,110 49%Total Expenditures 405,530 504,600 749,710 245,110 49% Other Sources (Uses)Operating Transfer In 163,250 504,600 504,600 - Operating Transfer Out - - 163,250 504,600 504,600 - Revenues and Other Sources Over (Under)Expenditures and Other Uses (220,280) 500 (244,610) (245,110) -49022% Fund Balance, Beginning of Year 488,636 5,586 268,356 262,770 4704% Fund Balance, End of Year 268,356 6,086 23,746 17,660 Variance % change 2016-17 B-30 CHANGES IN FINANCIAL POSITION INFRASTRUCTURE INVESTMENT FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 1,660 1,000 1,000 - Service ChargesTotal Revenues 1,660 1,000 1,000 - ExpendituresOperating Programs - Capital Improvement Projects - 1,000 250,000 249,000 Total Expenditures 1,000 250,000 - Other Sources (Uses)Operating Transfer In 250,000 1,000 1,000 - Debt Proceeds - Total Sources (Uses)250,000 1,000 1,000 - Revenues and Other Sources Over (Under)Expenditures and Other Uses 251,660 1,000 2,000 1,000 Fund Balance, Beginning of Year 60,105 61,000 311,765 250,765 411% Fund Balance, End of Year 311,765 62,000 313,765 251,765 2016-17 Variance % change B-31 CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND Actual Original Revised 2015-16 Budget BudgetExpendituresDebt Service2012/2001 Refunded Revenue Bonds 388,725 385,350 385,350 - 2005/1996 Refunding Revenue Bonds 467,851 466,789 466,789 - 2006 Lease Revenue Bonds 460,374 459,914 459,914 - 2009 Lease Revenue Bonds 829,998 826,610 826,610 - Fire Engine/Truck Lease Purchase 127,492 129,203 129,203 - Capital Lease / Fire Truck 2014 116,702 116,702 116,702 - Capital Lease (I.T. Equipment)154,773 199,049 199,049 - 2014 Lease Revenue Bond/ LOVR 515,050 422,181 422,181 - Fleet Debt Service 2015-17 240,068 240,068 - Total Expenditures 3,060,964 3,245,866 3,245,866 - .Other Sources (Uses)Operating Transfers In 3,025,400 3,245,866 3,245,866 - Operating Transfers Out - - - Proceeds from Debt Financing - - - Total Other Sources (Uses)3,025,400 3,245,866 3,245,866 - Revenues and Other Sources Over (Under)Expenditures and Other Uses - - - Fund Balance, Beginning of Year 2,043,222 2,043,222 2,043,222 - Fund Balance, End of YearReserved for Debt Service 2,043,222 2,043,222 2,043,222 - - - - Total Fund Balance 2,043,222 2,043,222 2,043,222 - 2016-17 Variance % change B-32 CHANGES IN FINANCIAL POSITION WATER FUND Actual Original Revised 2015-16 Budget BudgetRevenuesService ChargesWater SalesWater Service Charges 15,055,071 17,216,708 17,216,708 - Sales to Other Agencies 862,813 850,000 850,000 - Development Impact Fees 1,542,268 800,000 800,000 - Connection Charges and Meter Sales 60,421 71,000 71,000 - Late Charges and Credit Card Fees 39,584 65,000 65,000 - Account Set-up Fee 107,159 100,000 100,000 - AB 939 Reimbursement 141,957 135,000 135,000 - Total Service Charges 17,809,273 19,237,708 19,237,708 - Other Revenues 46,439 50,000 50,000 - Subventions and Grants - Investment and Property Revenues 305,608 50,000 50,000 - Total Revenues 18,161,320 19,337,708 19,337,708 - ExpendituresOperating ProgramsPublic Utilities 12,909,891 15,508,470 16,438,538 930,068 6%General Government 1,328,061 1,477,598 1,477,598 - Total Operating Programs 14,237,952 16,986,068 17,916,136 930,068 5%Capital Improvement Plan Projects 2,366,716 2,958,493 7,514,756 4,556,263 154%Debt Service 2,195,124 2,193,792 2,193,792 - Total Expenditures 18,799,792 22,138,353 27,624,684 5,486,331 25% Other Sources (Uses)Other Sources (Uses)Proceeds from Debt FinancingProjected MOA AdjustmentsOperating Transfer In - - - Operating Transfers Out (469,607) (561,244) (561,244) - Expenditure SavingsOther Sources (Uses)- - - Total Other Sources (Uses)(469,607) (561,244) (561,244) - Revenues and Other Sources Over (Under)Expenditures and Other Uses (1,108,079) (3,361,889) (8,848,220) (5,486,331) 163% Working Capital, Beginning of Year 21,857,589 16,238,604 20,749,510 4,510,906 28% Working Capital, End of Year 20,749,510 12,876,715 11,901,290 (975,425) -8% 2016-17 Variance % change B-33 CHANGES IN FINANCIAL POSITION SEWER FUND Actual Original Revised 2015-16 Budget BudgetRevenuesService ChargesCustomer SalesSewer Service Charges 14,526,319 14,300,000 14,300,000 - Sales to Cal Poly 888,437 875,000 875,000 - Development Impact Fees 502,393 300,000 300,000 - Account Set-Up Fees 107,131 100,000 100,000 - Late Charges and credit card fees 40,066 65,000 65,000 - 100%Industrial User Charges 79,822 70,000 70,000 - Connection Charges and Meter Sales 60,241 71,000 71,000 - Total Service Charges 16,204,409 15,781,000 15,781,000 - Other Revenues 50,718 37,500 37,500 - Investment and Property Revenues 388,885 50,000 50,000 - Total Revenues 16,644,012 15,868,500 15,868,500 - Expenditures Operating ProgramsPublic Utilities 6,018,807 7,098,843 7,098,843 - General Government 1,576,026 1,591,041 1,591,041 - Total Operating Programs 7,594,833 8,689,884 8,689,884 - Capital Improvement Plan Projects 5,178,482 4,023,275 19,677,576 15,654,301 389%Debt Service 1,406,026 1,435,587 1,435,587 - Total Expenditures 14,179,341 14,148,746 29,803,047 15,654,301 111% Other Sources (Uses)Cashflow adjustment for working capital - Proceeds from Debt Financing - - Projected MOA Adjustments - Operating Transfer In 173,096 - - - Operating Transfers Out (493,073) (490,319) (490,319) - Other Sources (Uses)- - Total Other Sources (Uses)(319,977) (490,319) (490,319) - Revenues and Other Sources Over (Under)Expenditures and Other Uses 173,096 1,229,435 (14,424,866) (15,654,301) -1273% Working Capital, Beginning of Year 27,050,422 13,481,852 27,223,518 13,741,666 102% Working Capital, End of Year 27,223,518 14,711,287 12,798,652 (1,912,635) -13% 2016-17 Variance % change B-34 CHANGES IN FINANCIAL POSITION WHALE ROCK COMMISSION Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues 19,273 1,000 1,000 - Service ChargesMember Agency Contributions O & M 724,058 735,828 735,828 - Member Agency Contributions CIP 411,877 404,377 404,377 Water Distribution Charges 277,791 370,000 370,000 - Other Service Charges - - - Total Service Charges & Interest 1,432,999 1,511,205 1,511,205 - Other Revenues 5,508 1,500 1,500 Total Revenues 1,438,507 1,512,705 1,512,705 - ExpendituresOperating ProgramsPublic Utilities 838,529 983,236 1,006,373 23,137 2%General Government 115,989 125,510 125,510 - Total Operating Programs 954,518 1,108,746 1,131,883 23,137 2%Capital Improvement Plan Projects 223,937 114,889 606,419 491,530 Total ExpendituresTotal Expenditures 1,178,455 1,223,635 1,738,302 514,667 42% Other Sources (Uses)Transfer out - - - - Other Sources (Uses)- - - Adjust for working capital - - - Total Other Sources (Uses)- - - - Revenues and Other Sources Over (Under)Expenditures and Other Uses 260,052 289,070 (225,597) (514,667) Working Capital, Beginning of Year 1,153,370 1,007,925 1,413,422 405,497 40% Working Capital, End of Year 1,413,422 1,296,995 1,187,825 (109,170) -8% 2016-17 Variance % change B-35 CHANGES IN FINANCIAL POSITION PARKING FUND Actual Original Revised 2015-16 Budget BudgetRevenuesService ChargesParking Meter CollectionsLots 304,345 166,200 166,200 - Streets 1,526,182 1,539,100 1,539,100 - Parking Structure Collections 1,162,982 1,054,700 1,054,700 - Long-Term Parking Revenues 642,483 434,900 434,900 - Lease Revenues 403,630 500,500 500,500 - Parking In-Lieu Fees 2,641,296 20,200 20,200 - Other Service Charges (15,096) 100 100 - Total Service Charges 6,665,822 3,715,700 3,715,700 - Investment and Property Revenues 172,523 48,200 48,200 - Fines and Forfeitures 579,823 669,900 669,900 - Other Revenues 161,164 - - - Total Revenues 7,579,331 4,433,800 4,433,800 - ExpendituresOperating ProgramsTransportation 1,835,753 2,188,099 2,385,106 197,007 9%General Government 711,587 684,603 684,603 - Total Operating Programs 2,547,340 2,872,702 3,069,709 197,007 7%Capital Improvement Plan Projects 20,547 50,798 2,231,404 2,180,606 Debt Service 953,751 969,400 969,400 - Total Expenditures 3,521,638 3,892,900 6,270,513 2,377,613 61% Other Sources (Uses)Cashflow adjustment for working capital - Expenditure Savings - - Operating Transfer In - - - Operating Transfer Out (473,368) - - - PERS 1% Contribution - - Proceeds from Debt Financing - - Other Sources (Uses)(82,653) - - - GST Loan per Council Approval (500,000) (500,000) - Potential MOA Adjustments (11,198) (11,198) - Total Other Sources (Uses)(556,021) (511,198) (511,198) - Revenues and Other Sources Over (Under)Expenditures and Other Uses 3,501,673 29,702 (2,347,911) (2,377,613) -8005% Working Capital, Beginning of Year 8,436,557 9,643,354 11,938,230 2,294,876 24% Working Capital, End of Year 11,938,230 9,673,056 9,590,319 (82,737) -1% 2016-17 % change Variance B-36 CHANGES IN FINANCIAL POSITION TRANSIT FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenues 11,203 5,800 5,800 - From Other GovernmentsTDA Revenues (LTF)1,312,716 1,286,625 1,286,625 - TDA Revenues (STA)162,418 159,890 159,890 - Other Grants 39,738 175,200 175,200 - FTA Grants 1,373,948 1,424,555 1,424,555 - Service Charges 658,601 690,381 690,381 - Other Revenues 868 4,600 4,600 - Total Revenues 3,559,492 3,747,051 3,747,051 - ExpendituresOperating ProgramsTransportation 2,819,992 3,448,368 3,448,368 - General Government 277,329 288,995 288,995 - Total Operating Programs 3,097,321 3,737,363 3,737,363 - Capital Improvement Plan Projects 131,999 228,369 2,003,324 1,774,955 777%Total Expenditures 3,229,320 3,965,732 5,740,687 1,774,955 45% Other Sources (Uses) Cashflow adjustment for working capital - - Projected MOA Adjustments (4,200) (4,200) - Operating Transfer In - - - Operating Transfer Out - - - - Other Sources (21,225) - - - Expenditure Savings - - - Total Other Sources (Uses)(21,225) (4,200) (4,200) - Revenues and Other Sources Over (Under)Expenditures and Other Uses 308,947 (222,881) (1,997,836) (1,774,955) 796% Working Capital, Beginning of Year 2,825,195 2,137,819 3,134,142 996,323 47%Prior Year RestatementWorking Capital, End of Year 3,134,142 1,914,938 1,136,306 (778,632) -41% 2016-17 Variance % change B-37 CHANGES IN FINANCIAL POSITION BOYSEN RANCH CONSERVATION FUND Actual Original Revised 2015-16 Budget BudgetRevenuesInvestment and Property Revenue 2,981 1,800 1,800 - Service Charges - - Total Revenues 2,981 1,800 1,800 - ExpendituresOperating Programs 7,500 7,500 - Total Expenditures 7,500 7,500 - Other Sources (Uses)Operating Transfer In - - Debt Proceeds - Total Sources (Uses)- - - Revenues and Other Sources Over (Under)Expenditures and Other Uses 2,981 (5,700) (5,700) - Fund Balance, Beginning of Year 86,925 81,225 89,906 8,681 11% Fund Balance, End of Year 89,906 75,525 84,206 8,681 11% 2016-17 Variance % change B-38 Item Amount Pending Approval Total LAW ENFORCEMENT GRANT FUNDOTS Grant Expired 10/2016 (272,322) - OTS 16-17 Step Grant 57,212 - (215,110) - (215,110) GENERAL PURPOSE CIP FUNDStormwater Resource Plan 10,000 - Sinsheimer Park Playground 282,650 - 292,650 - 292,650 TRANSPORTATION IMPACT FEE FUNDPG&E Change Order 1,095 - 1,095 - 1,095 FLEET REPLACEMENT FUNDGreen Fleet Rebate 7,500 - 7,500 - 7,500 MAJOR FACILITY REPLACEMENT FUNDTransfer from General Fund 270,000 - 270,000 - 270,000 OPEN SPACE PROTECTION FUNDRachel Ct Terrace Hill Trail 6,900 - 6,900 - 6,900 SUMMARY OF REVENUE BUDGET ADJUSTMENTS B-39 Item Amount Pending Approval Total Year 2 - Financial Plan Carryover from 2015-16 2,716,534 2015-16 Encumbrance Carryforward 850,855 3,567,389 - 3,567,389 LOCAL REVENUE MEASURE SUB-FUND2015-16 CIP Carryforward 3,618,009 2015-16 Encumbrance Carryforward 344,727 3,962,736 - 3,962,736 2015-16 CIP Carryforward 232,899 232,899 - 232,899 2015-16 Encumbrance Carryforward 25,030 2015-16 TBID Carryover 68,200 93,230 - 93,230 2015-16 CIP Carryforward 607 2016-17 OTS Step Grant 57,212 OTS Grant Expired 10/2016 (272,322) (214,503) - (214,503) 2015-16 CIP Carryforward 199,951 2015-16 Encumbrance Carryforward 74,246 274,196 - 274,196 2016-17 Debt Service Original Budget 3,245,866 3,245,866 - 3,245,866 2015-16 CIP Carryforward 4,702,312 2015-16 Encumbrance Carryforward 1,044,115 5,746,427 - 5,746,427 2015-16 CIP Carryforward 252,697 252,697 - 252,697 2015-16 CIP Carryforward 3,117,505 2015-16 Encumbrance Carryforward 315,440 PG&E Change Order 1,095 3,434,040 - 3,434,040 2015-16 CIP Carryforward 208,819 2015-16 Encumbrance Carryforward 243,612 Green Fleet Rebate 7,500 459,931 - 459,931 2015-16 CIP Carryforward 947,781 2015-16 Encumbrance Carryforward 16,200 Rachel Ct Terrace Hill Trail - Easement 6,900 970,881 - 970,881 2015-16 CIP Carryforward 50,000 2015-16 Encumbrance Carryforward 6,669 56,669 - 56,669 2015-16 CIP Carryforward 1,224,227 Purchase Affordable Housing Unit: 867 Humbert 300,000 1,524,227 - 1,524,227 2015-16 CIP Carryforward 409,464 2015-16 Encumbrance Carryforward 75,423 484,888 - 484,888 DEBT SERVICE FUND AFFORDABLE HOUSING FUND INFORMATION TECHNOLOGY REPLACEMENT FUND GENERAL PURPOSE CIP FUND PARKLAND DEVELOPMENT FUND TRANSPORTATION IMPACT FEE FUND FLEET REPLACEMENT FUND OPEN SPACE PROTECTION AIRPORT AREA IMPACT FEE FUND PUBLIC ART FUND SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS GENERAL FUND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) FUND LAW ENFORCEMENT GRANT FUND B-40 Item Amount Pending Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS 2015-16 CIP Carryforward 218,995 2015-16 Encumbrance Carryforward 26,115 245,110 - 245,110 2015-16 CIP Carryforward 250,000 250,000 - 250,000 Year 2 - Financial Plan Carryover from 2015-16 701,300 2015-16 CIP Carryforward 4,275,255 2015-16 Encumbrance Carryforward 448,499 5,425,054 - 5,425,054 Year 2 - Financial Plan Carryover from 2015-16 548,600 2015-16 CIP Carryforward 8,600,017 2015-16 Encumbrance Carryforward 6,505,683 15,654,301 - 15,654,301 2015-16 CIP Carryforward 481,368 2015-16 Encumbrance Carryforward 33,299 514,667 - 514,667 2015-16 CIP Carryforward 2,080,606 2015-16 Encumbrance Carryforward 197,007 Appropriation for Parking Demand Model 100,000 2,377,613 - 2,377,613 2015-16 CIP Carryforward 222,226 2015-16 Encumbrance Carryforward 1,552,730 1,774,955 - 1,774,955 WHALE ROCK FUND PARKING FUND TRANSIT FUND INFRASTRUCTURE INVESTMENT FUND MAJOR FACILITY REPLACEMENT FUND WATER FUND SEWER FUND B-41 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2015-16 Budget Budget AmendmentsGeneral FundOperating Transfers InGas Tax Fund 1,033,757 965,000 965,000 - TDA Fund 40,531 41,100 41,100 - Tourism BID Fund 28,412 28,679 28,679 - Open Space Protection Fund - Proposition 1B - Affordable Housing Fund 62,000 17,000 17,000 0 Transportation Impact Fee Fund 320,000 250,000 250,000 - Cost of Services 1,051,563 1,051,563 - Fleet Replacement Fund - Open Space Protection Fund - Water Enterprise Fund 469,607 - Sewer Enterprise Fund 493,073 - Parking Enterprise Fund 473,368 - PEG City of SLO 22,938 - CIP Grant - Mayor Task Force/Joint Recreational - Total Operating Transfers In 2,943,686 2,353,342 2,353,342 0 Operating Transfers Out - Insurance Benefit Fund (2,124,000) (1,739,898) (1,739,898) - Community Development Block Grant (147,487) (153,969) (153,969) - General Purpose CIP (281,733) (439,900) (439,900) - Public Art Private Sector Fund - Fleet Replacement Fund (384,100) - Debt Service Fund (3,025,400) (3,245,866) (3,245,866) - Information Technology Fund (617,000) (2,621,000) (2,621,000) - Major Facility Replacement Fund (145,750) (504,600) (504,600) - Transportation Impact Fee Fund - - - Infrastructure Investment Fund (250,000) - - Open Space Protection Fund - Parkland Development Fund (900,000) (900,000) Total Operating Transfers Out (6,975,470) (8,705,233) (9,605,233) (900,000) Total Operating Transfers (4,031,784) (6,351,891) (7,251,891) (900,000) - Community Development Block Grant Fund - Operating Transfer In - Park Hotel Fund - General Fund 147,487 153,969 153,969 - 147,487 153,969 153,969 - Gas Tax Fund - Operating Transfer Out (1,033,757) 965,000 965,000 - General Fund (1,033,757) 965,000 965,000 - - Transportation Development Act Fund - Operating Transfer Out (40,531) (41,100) (41,100) - General Fund (40,531) (41,100) (41,100) - - Tourism Business Improvement District Fund - Operating Transfer Out (28,412) (28,679) (28,679) - General Fund (28,412) (28,679) (28,679) - 2016-17 B-42 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2015-16 Budget Budget Amendments 2016-17 - Information Technology Replacement Fund - Operating Transfer In - General Fund 617,000 2,621,000 2,621,000 - Public Access Channel Fund - Total Operating Transfers 617,000 2,621,000 2,621,000 - - Sewer Enterprise Fund - Operating Transfer In - Wastewater Dev Impact Fee Fund 173,096 - - - Total Transfers In 173,096 - - - - Operating Transfer Out - Insurance Benefit Fund (493,073) - General Fund (490,319) (490,319) - Total Operating Transfers (319,977) (490,319) (490,319) - - Wastewater Development Impact Fee Fund - Operating Transfer Out (173,096) - - - Sewer Fund (173,096) - - - - Parking Enterprise Fund - Operating Transfer In - General Fund - - 12,589 12,589 - Operating Transfer Out - Insurance Benefit Fund - General Fund (473,368) - - - Total Operating Transfers (473,368) - 12,589 12,589 - Water Enterprise Fund - Operating Transfer In - Utility Billing Control - - - - - Operating Transfer Out - General Fund (469,607) (561,244) (561,244) - Total Operating Transfers (469,607) (561,244) (561,244) - - Transit Enterprise Fund - Operating Transfer In - - - Total Operating Transfers - - - - - B-43 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2015-16 Budget Budget Amendments 2016-17 Insurance Benefit Fund - Operating Transfer In - General Fund 2,124,000 1,739,898 1,739,898 - Water Enterprise Fund - - Sewer Enterprise Fund - - Parking Enterprise Fund - - Transit Enterprise Fund - - Whale Rock Commission - - Total Operating Transfers 2,124,000 1,739,898 1,739,898 - - Whale Rock Commission - Operating Transfer OutInsurance Benefit Fund - - - - Total Operating Transfers - - - - - General Purpose CIP - Operating Transfer In - General Fund 281,733 439,900 439,900 - Major Facility Replacement - Debt Service - Total Transfers In 281,733 439,900 439,900 - - Operating Transfer Out - Major Facility Replacement (17,500) - - - Public Art Fund (36,400) (39,900) (39,900) - Total Transfers Out (53,900) (39,900) (39,900) - Total Operating Transfers 227,833 400,000 400,000 - - Transportation Impact Fee Fund - Operating Transfers InGeneral Fund - - - - - Operating Transfer Out - General Fund (320,000) (250,000) (250,000) - Total Operating Transfers (320,000) (250,000) (250,000) - Open Space Protection Fund - Operating Transfers InGeneral Fund - - - - Operating Transfer Out - General Fund - - - Total Operating Transfers - - - - - Fleet Replacement Fund - Operating Transfers In - General Fund 384,100 - - - - Operating Transfers Out - General Fund - - - - Total Operating Transfers 384,100 - - - B-44 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2015-16 Budget Budget Amendments 2016-17 - Debt Service Fund - Operating Transfer In - General Fund 3,025,400 3,245,866 3,245,866 - - Operating Transfer Out - General Fund - - - - Total Operating Transfers 3,025,400 3,245,866 3,245,866 - - Major Facility Replacement Fund - Operating Transfer In - General Fund 145,750 504,600 504,600 - Capital Outlay Fund 17,500 - - - Total Transfers In 163,250 504,600 504,600 - - Operating Transfer Out - Capital Outlay Fund - - - - Total Transfers Out - - - Total Operating Transfers 163,250 504,600 504,600 - Parkland Development Fund - Operating Transfer In - General Fund - 900,000 900,000 - Affordable Housing FundOperating Transfer OutGeneral Fund (62,000) - - - Total Operating Transfers (62,000) - - - CIP Grant Fund - Operating Transfer Out - General Fund - - - - Total Operating Transfers - - - - - Mayor Task Force/Joint Recreational - Operating Transfer Out - - - - Total Operating Transfers - - - - - B-45 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2015-16 Budget Budget Amendments 2016-17 Public Art Fund - Operating Transfer In - General Fund - Capital Outlay Fund 36,400 39,900 39,900 - Total Operating Transfers 36,400 39,900 39,900 - - Public Access Channel Fund (PEG)- Operating Transfer Out - General Fund 22,938 - - - Total Operating Transfers 22,938 - - - - Infrastructure Investment Fund - Operating Transfer In - General Fund 250,000 1,000 1,000 - Total Operating Transfers 250,000 1,000 1,000 - - - NET OPERATING TRANSFERS 45,876 1,948,000 1,060,589 (887,411) B-46 Section C STATUS OF GOALS AND OBJECTIVES 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 1 The overall goal of the City’s Financial Plan is to link goals and objectives with the resources required to meet and complete them. This section of the 2016-17 Mid-Year Report provides a progress report on the City’s adopted Major City Goals (Goals) and Other Important Objectives (Objectives). This update is presented in a table based format with narrative adjacent to each of the 2015-17 Financial Plan Goal’s and Objective’s Action Plan Tasks. In 12-months’ time significant progress has been made on the City’s Major Goals and Other Important Objectives highlights of the past six months are emphasized below. 2015-17 MCG ACTION HIGHLIGHTS TO DATE Open Space Preservation 70% Complete The series of Natural Resources Roundtable meetings were completed and will to help formulate a vision for the future that will be articulated in a written plan presented for Council and community consideration in spring 2016-17. Ranger service staff have been working diligently on implementing the City’s now adopted Open Space Maintenance Plan. As a result, the numbers of mutt mitt and trash cans, bell boxes, trail signs, and kiosks have all increased. Additionally, 3.7 miles of approved trails have been constructed providing improved access to Cerro San Luis, the Irish Hills, Stenner Springs and Reservoir Canyon. A significant fire fuel reduction effort at Bishop Peak was completed during the month of September that included over 1,100 hours of convict labor to augment Ranger staff. All of the maintenance activities undertaken during 2016 were presented to Council in the first annual open space maintenance report on January 3rd, 2017. Finally, three separate land conservation opportunities continue to progress with the Waddell Ranch Open Space Acquisition project anticipated to close escrow in early 2017. The Calle Joaquin Agricultural Reserve wetland installation and bioswale were completed in late 2016. Multi-Modal Transportation 50% Complete Summer saw the completion of several new green bike lanes installed along with 10 new sidewalk ramps on Santa Rosa and Patricia Drive. The Rail Road Safety Trail extension from Laurel to Orcutt design is complete and starting construction. The City received an international award from the Institute of Transportation Engineers for the 2014 LUCE Update and Multimodal activities. With the return of students and the start of elementary school in fall, the Halloween Safety program for 2016 has been completed and the City’s annual Bike Rodeo produced. In September, 2016, the Council adopted the Short Range Transit Plan and service changes consistent with the plan will be implemented in summer 2017. Lastly, new bicycle markings were added to City streets during the 2015 and 2016 paving projects. These markings consisted of bicycle lane buffers and bicycle sharrows. Major City Goals (MCG) • Open Space Preservation • Multi-Modal Transportation • Housing Other Important Objectives (OIO) • Neighborhood Wellness • Laguna Lake Restoration • Fiscal Sustainability and Responsibility • Downtown C-1 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 2 A few notable changes to completion dates related to this action plan include the winter presentation to the Planning Commission of the environmental review associated with the Bob Jones Octagon Barn trail alignment. Also, the Higuera and Marsh Street lighted cross walk replacement is complete. The single largest project in this Goal is the Railroad Safety Trail Taft to Pepper project. Staff has completed the NEPA process, is 95% complete with the CEQA process, and 50 % complete with the design. One of the major milestones will be the approval by Union Pacific Railroad (UPRR) of the Variance to allow the alignment adjacent to their existing tracks. Staff is working diligently with UPRR on this issue and at this point are cautiously optimistic regarding its approval. Housing 75% Complete Since June 2016 over $900,000 in affordable housing in-lieu fees have been collected. Staff is seeing an increase in the number of projects choosing to develop inclusionary housing instead of paying a fee. Staff is currently finalizing monitoring all inclusionary affordable units within the City and recently purchased and re-sold an affordable unit found out of compliance. Staff continues to work with non-profit developers on five upcoming affordable housing projects, and has been working closely with CAPSLO on the construction timing and financing requirements of 40 Prado. Staff anticipates providing Council with a memo articulating affordable housing opportunities on City owned properties in February 2017. 2015-17 OTHER IMPORTANT OBJECTIVES (Objectives) ACTION HIGHLIGHTS TO DATE Neighborhood Wellness 70% Complete This Objective has seen continued progress on a wide variety of tasks. The Neighborhood Match Grant program has seen the completion of the Islay Park Trail clean up and start of the San Luis Seasonal Social Gatherings grant. Applications are currently being accepted for the next round of grants anticipated to be awarded in February 2017. On December 13th Council will consider amendments to the Safety Enhancement Zone to cover Saint Patrick’s Day. Significant outreach was provided to parents and students over the summer when the Fire and Police Chiefs gave over 18 presentations to over 4,000 incoming Cal Poly students and their parents or caregivers. Laguna Lake Restoration 75% A major milestone was completed on September 20, 2016 with Council’s approval of a suite of recommendations pertaining to the preferred project alternative, including dredging technology, dredging project size, dewatering, sediment disposal, and sediment management strategies. Next steps include detailed project financing strategy, public outreach, project permitting and environmental review, and 95% plans, specifications, and engineering for the preferred project. The Environmental Review process is underway. Staff will be meeting with permitting agencies, starting with the Army Corps of Engineers in early 2017. The City’s staff and consultant continue to evaluate funding options for dredging, and public opinion research related to a prospective Community Facilities District was completed in late 2016. At this time, construction is planned to occur over four years with a proposed start of construction is planned for late spring 2018. Final financing arrangements and steps necessary to prepare for construction will need to occur during the early part of the 2017-19 Financial Plan period. C-2 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 3 Fiscal Sustainability and Responsibility 50% Work with the Revenue Enhancement Oversight Commission (REOC) is ongoing with reports provided at year-end 2016. The Government Finance Officers Association (GFOA) completed its analysis of the Finance and IT Department results of which was presented to the City Council on April 19, 2016. Based on the GFOA assessment and staff recommendations, Council approved the Efficiency & Effectiveness Initiative with the 2016-17 Supplemental Budget allocating resources to redesign business processes and implement an Enterprise Resource Planning system. A total of $2 million was allocated to pay down unfunded liabilities for CalPERS and OPEB above required contributions with 2015-17 Financial Plan and Supplemental Budget. Council approved moving to an excess insurance program for liability coverage effective July 2016 which, based on claim experience, should result in a cost reduction. In addition, this program aligns with the City’s objective to reduce claim severity and costs associated with the workers’ compensation and liability programs by 30% in three years. The comprehensive analysis of City costs and fees is tentatively scheduled for a late winter 2017 presentation to Council. A draft public dashboard for performance measures was launched in in May 2016. Performance measures are being developed for the 2017-19 Financial Plan. The measures will be pertinent to inform key budgetary decisions for the 2017-2019 Financial Plan. Downtown 60% A draft concept plan for the Mission Plaza has been generated. The draft plan was presented to the Park & Rec Committee for review and comment in January 2017. Presentations to the Cultural Heritage Committee and Architectural Review Committee are scheduled for Spring of 2017. Chinatown and Garden Street Terraces continue construction. Monterey street has seen the opening of H&M, Williams Sonoma, Lululemon and more. Significant infrastructure maintenance work continues in the Downtown on a regular basis from street crews, including increased steam cleaning of Bubble Gum Alley. . CONCLUSION The next review of the 2015-17 Major City Goals and Other Important Objectives will occur at the end of fiscal year 2016-17. Individual items requiring policy direction and/or Council approval will continue to be brought to Council for consideration and direction. C-3 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 4 Open Space Preservation: 2015-17 Action Plan (70% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 1 Pursue voluntary land conservation opportunities in the Cuesta Canyon area of the City’s Greenbelt by working cooperatively with the property owners to acquire and protect portions of The Miossi Brothers La Cuesta Ranch and the Ahearn Family Ranch. An opportunity also exists to expand the Irish Hills Natural Reserve by collaborating with non-profit land trust partners. Ongoing Staff is presently pursuing three separate land conservation opportunities, as identified in the task. The Waddell Ranch addition to the Irish Hills Natural Reserve is anticipated in early 2017. The other identified acquisitions are pending and continued discussions with property owners are in progress. 2 Facilitate open space dedications anticipated as components of land use entitlements to protect the Chevron Tank Farm open space and portions of the South Hills and Righetti Hill. Ongoing Staff has reached preliminary agreement on the terms of the conservation easement for the open space component of the Chevron Tank Farm property. The Righetti Hill dedication is required by conditions of approval for Tract 3063. The 71-acre parcel dedication associated with Tract 2428 to expand the South Hills Natural Reserve is expected to be received by the end of 2016. 3 Undertake and complete the Natural Resources Manager’s Roundtable: The 20th Anniversary Proceedings of the San Luis Obispo Greenbelt and pursue any follow up items that arise from this process. 01/17 Complete The Natural Resources Roundtable completed monthly meetings in June 2016. The next step is the long-term vision plan described in Task 4, below. 4 Prepare a long-term vision plan, Saving Special Places III: Towards a Sustainable Greenbelt, pertaining to long-term strategic open space acquisition priorities, maintenance and enhancement projects, staffing and equipment, and funding strategies in order to provide for the long-term protection and stewardship of natural resource conservation values and passive recreational amenities appurtenant to City open space properties in existence now and that are planned in the future. 07/17 Completion of the draft vision plan is anticipated for winter 2016-17 with public outreach and advisory body input and review anticipated in late winter / spring 2017, with City Council review anticipated in June 2017. 5 Update Conservation Guidelines for Open Space Lands within the City of San Luis Obispo to address minor inconsistencies with other policy documents. 07/17 This update effort is expected in spring of 2017, and may also include potential revisions / updates to Open Space Regulations per Council direction regarding Open Space Hours of Use. 6 Ongoing annual monitoring of all City-owned open space properties, open space easements, and conservation easements. Ongoing Rangers inspect/patrol trailheads and trails daily. Conservation easements are visited annually. Workdays are held weekly. C-4 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 5 Open Space Preservation: 2015-17 Action Plan (70% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 7 Present to the City Council a Maintenance Plan for the City’s Open Space for adoption. 12/15 Complete Adopted December 2015. Annual completed January 2017. 8 Consistent with adopted conservation and open space plans, complete Trailhead Enhancements at signature open space properties including installation of trash cans, mutt mitt stations, trail head signage, informational kiosks, trail way finding signage, and where possible improved parking for cars and bikes, as well as improved public transportation access. 06/17 The following installations have occurred during this reporting period: 11 mutt mitts stations with integrated trash cans, 7 bell boxes, 15 Trail signs with 20+ trail marking upgrades. 8 Small – Large Kiosk and construction begun with 7 to install this winter. 9 Complete priority projects previously identified in conservation and open space plans including: 06/17 See below. 10 Bishop Peak emergency vehicle access and trailhead improvements; 06/17 Two public meetings were completed in September 2016. A study session was held with City Council in January 2017 to obtain direction, with follow up action anticipated as part of the 2017-19 Financial Plan. 11 Johnson Ranch trailhead parking and safety improvements; 06/17 Project scoping, environmental review, and design started. 12 Reservoir Canyon trailhead parking enhancements, trail signs, and new loop trail; 06/17 The Reservoir Canyon Loop Trail is completed adding approximately 2.4 miles of new trail. Signage and trail markers have been installed. Kiosks are under construction and will be installed with added parking that will be completed in winter / spring 2017. 13 Cerro San Luis trail re-routing and erosion control, and completion of the “M” trail; 06/17 Trail re-routing and erosion control efforts completed. The completion of the “M” trail is underway with Ranger staff and volunteers working on this technically challenging trail project during weekly Wednesday Workdays and other times. 14 Terrace Hill sign and kiosk improvements, trail closure/erosion control, and new fencing. 06/17 Terrace Hill kiosk, fencing, and other trailhead amenities are complete. Sign panels are anticipated for mid-2017. C-5 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 6 Open Space Preservation: 2015-17 Action Plan (70% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 15 Continue to construct additional trails at Froom Ranch consistent with the approved Irish Hills Conservation Plan completing BLM license area, expanding existing network, and working on a new and improve access point to the trail network. 06/17 Complete Trails complete. Morro View to Froom Canyon trail to be constructed upon acquisition of the Waddell Ranch, anticipated following this property’s addition to the Irish Hills Natural Reserve Conservation Plan, during 2017-19. 16 Initiate implementation of the Laguna Lake Natural Reserve Conservation Plan (see Other Important Council Objective). Fall 2018 Spring 2022 (for completion of dredging and sediment basins) Project is currently at the 65% design phase. City Council reviewed project scope and funding alternatives in September 2016. Design and project permitting anticipated to be complete in Winter 2017. Starting environmental initial studies phase. Construction will be a phased through in four years with work only during the spring/summer. Project completion date has been revised to reflect phased approach. 17 Continue to address daily maintenance project needs in the City’s Open Space to address wear and tear, natural events, vandalism and other activities which create repair needs in the open space. Ongoing Ongoing. Efforts continue with focus on fire fuel reduction and winterization efforts to reduce flood damage in the creeks and clean up trash associated with illegal encampments. 18 Complete prioritized deferred maintenance projects identified in Open Space Maintenance Plan. Ongoing 80-90% Trailhead “remodels” complete with Spring 2017 signage completion anticipated. 19 Continue patrol of the City’s open space areas and creek corridors. Ongoing Rangers are out daily enforcing rules in open space while monitoring maintenance needs. Approximately 275 citations have been issued for illegal activities in the open space since the inception of active patrol. Smoking, dogs off leash and hiking when open space is closed are the most frequent citations issued. With this however has come increased compliance and times when on a given busy Saturday 30 dogs have been encountered ALL on leash in the open space. Additionally, multiple times per week creek areas are checked on and illegal and abandoned encampments cleaned out. C-6 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 7 Open Space Preservation: 2015-17 Action Plan (70% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 20 Continue to coordinate 70 trail work days (4,000 hours) a year utilizing volunteers including continuing the partnership with the Central Coast Concerned Mountain Bikers on various open space improvements and maintenance. Ongoing From June 30 to December 31,2016, 3.7+ miles of trail were constructed in the following locations: Cerro San Luis, Irish Hills, Stenner Springs and Reservoir Canyon 21 Continue Ranger Led Hikes in the City’s open space on a monthly basis and upon request. Ongoing The past six months included hikes at: Stenner Springs, Reservoir Canyon, Johnson Ranch, Islay Hill, Cerro San Luis and Bishop Peak 22 Continue Ranger Service environmental education program and Junior Ranger Camp to increase open space knowledge and user safety. Increase educational efforts to Cal Poly and Cuesta students with particular focus on safety, appropriate use of open space, appropriate time for use, and all City open space trail opportunities. 06/17 Summer 2016 camps were a great success. Natural Resources, Ranger Service and ECOSLO presented to Cal Poly WOW leaders open space etiquette and the diversity of open space locations throughout the City. 1,300 contacts were made with students during WOW week in the City’s open space. 23 Increase staffing resources in the Ranger Service Program to provide increased open space improvements, maintenance, and patrol. 08/15 Complete Complete. Ranger service is fully staffed: one supervising ranger, two full time benefited rangers, four limited benefit rangers and one city worker 5 serving as a ranger. An average of 210 hours a week (all 7 days) of ranger time in the Open Space performing various duties. 24 Include QR codes for donation links in signage, develop a marketing and promotion plan for donations to the Community Foundation City of San Luis Obispo Open Space Fund for Maintenance. 06/17 QR codes were used with the City’s public outreach for the draft open space maintenance plan and will continue to be used for added outreach and education. 25 Ongoing community outreach and education in partnership with ECOSLO through the SLO Stewards newsletter. Quarterly SLO Stewards newsletters have been completed per schedule. 26 Improve creek and flood protection within the City’s natural waterways through Zone 9 projects and coordination and oversight of the Stormwater Management Program. 10/15, 10/16 All of the annual maintenance locations are complete for winter 2015-16. ” Winterization” is complete for 2016-17. 27 Ongoing monitoring, remedial action, and enhancement, as needed, of existing mitigation sites. Ongoing Ongoing. Occurs on a routine basis in various locations. C-7 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 8 Open Space Preservation: 2015-17 Action Plan (70% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 28 Ongoing invasive species treatment and control. Ongoing Ongoing. Integrated Vegetation Management Plan for invasive species control was adopted as technical appendix to the Open Space Maintenance Plan. The Land Conservancy of San Luis Obispo County is under contract as of September 1, 2016 to attend to high priority invasive species in various open space locations. 29 Complete wetland meadow and riparian planting / invasive species control at Calle Joaquin Agricultural Reserve using awarded Environmental Enhancement and Mitigation Program grant funds. 01/16 Complete Final installation activity is underway in October and November 2016 including a “compost blanket” to foster seed germination and weed control, as well as the installation of a bioswale to assist with drainage from the farm fields. 30 Complete project design and specifications for the Fox Hollow reservoir rainwater storage project to enhance summer stream flow in San Luis Obispo Creek. 06/17 Preliminary design concepts have been developed with assistance from the California Conservation Corps. 31 Irish Hills Natural Reserve eucalyptus thinning, mowing, oak grove understory management. Ongoing Complete Work was completed in summer 2016. 32 Bowden Ranch Open Space eucalyptus thinning. Ongoing Complete Thinning completed in winter 2016 33 Terrace Hill Open Space mowing and /or grazing. Ongoing Complete Summer 2016 mowing of Terrace Hill Open Space complete. Seeking a goat contractor for spring / summer 2017 34 Islay Hill Open Space grazing. Ongoing Complete Spring 2016 marked the beginning of seasonal grazing at Islay Hill Open Space. 35 Cerro San Luis Natural Reserve / Lemon Grove eucalyptus thinning and grazing. Ongoing This activity is scheduled for Summer 2017. 36 Johnson Ranch Open Space grazing. Ongoing Complete The summer 2016 grazing season at Johnson Ranch Open Space is complete. C-8 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 9 Open Space Preservation: 2015-17 Action Plan (70% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 37 Bishop Peak Natural Reserve grazing, Felsman Loop Fuel Break maintenance, removal of dead pines near Highland Drive. Ongoing Complete A major fuel reduction project was completed near the top of Highland in September 2017. Over 1,100 hours of convict crews were managed by Ranger Services. 15 truckloads and 21 trailer loads of wood were removed. Over 25 hours of wood chipping occurred. C-9 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 10 Multimodal Transportation: 2015-17 Action Plan (50% complete) Objective: Prioritize implementation of the Bicycle Transportation Plan and improve & maintain bicycle, pedestrian, & transit facilities. # Task Completion Date Revised Status 1 Continue Transportation Safety & Operations Programs. Ongoing 2015 Annual Traffic Safety Report presented to Council on October 18, 2016. Operations Report underway with anticipation for production in first quarter 2017. 2 Continue Bicycle Facilities Improvement Activities. Ongoing Highland/Chorro bicycle improvement completed. New green bike lanes installed as part of 2016 pavement project including improvements at Marsh and California. Kick off meeting for the Safe Route to School project for Pacheco and Bishop elementary were held. In Partnership Public Works, Parks and Recreation and Police hosted the annual City Bicycle Rodeo was held on September 17th. 3 Complete 2015-17 BTP Implementation CIP. 06/17 Revised design of Rail Road Safety Trail (RRST) Taft to Pepper underway. Active Transportation Manager has now been hired. Broad Street Bicycle Blvd initial public workshop held. RRST Orcutt Road to Laurel connection design is complete and starting construction. 4 Complete environmental review and design of Prado Rd. Bridge at San Luis Creek Widening & Grade Separated Bike/Pedestrian crossing. 06/17 Environmental Work & Design Ongoing. Continued working with Caltrans for potential grant funding assistance. 5 Develop Safe Routes to School & BTP implementation plan for the Foothill: Pacheco / Bishop Peak Elementary School Area. 06/17 Initial public community workshop held in June 2016. Staff working on technical studies and project identification, Second community meeting anticipated for early 2017. 6 Complete environmental review and design of Bob Jones Trail Octagon Connection. 06/16 11/16 Environmental review and approved by Planning Commission in November 2016. Awaiting county concurrence letter for environmental determination. 7 Complete environmental review and design of Bob Jones Trail Prefumo Creek Connection. 06/17 Active Transportation manager preparing RFP for design services for circulation in winter 2016. C-10 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 11 8 Complete Higuera & Marsh Lighted Crosswalk Replacement. 06/17 Completed Project Completed. 9 Complete Highland & Chorro Bike Improvements. 04/16 Completed Project Completed. 10 Complete 2015-17 Pedestrian & Bicycle Pathway Maintenance. 06/17 Maintenance and drainage repairs of Railroad Safety Trail (south of Jennifer St. Bridge) is complete. This maintenance project included enhancements such as fog striping to enhance user safety. A construction contract for path improvements at Islay Park is has been awarded and is awaiting a clear weather window for construction. 11 Complete 2015-17 Downtown Tree & Sidewalk Replacements. 06/17 Three locations have been repaired in the downtown through Job Order Contract. Repair work is ongoing. 12 Complete 2015-17 Mission Plaza Railing Upgrades. 06/17 4/17 The railing replacement project is scheduled to bid in late January with construction slated to start in February 2017. 13 Complete 2015-17 Street Reconstruction & Resurfacing. Ongoing The summer 2016 project is complete which included maintenance work in Area 8 and 1. Design work underway for summer 2017 project on Madonna Road and Los Osos Valley Road. 14 Complete 2015-17 Sidewalk Ramp Construction. 06/17 Ongoing The 2016-17 project is complete which replaced 10 ramps. The 2015 Project replaced 10 curb ramps on Los Osos Valley Road and Madonna Road. The 2016 project replaced 10 ramps on Santa Rosa and Patricia Drive. 15 Begin Construction on Marsh Street Bridge Replacement. 06/16 6/18 Marsh Bridge design and environmental document is close to completion. Property acquisition, permitting, and the finalization of NEPA documentation will mean the project will begin construction in 2018 at the earliest. This is primarily due to the restrictions of when work can be done in the creeks. Final construction date could be further affected based upon final Environmental and Caltrans requirements. C-11 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 12 16 Begin project development work on Prado Road Broad to Higuera Class I Path. 08/15 Ongoing Meetings with property owners ongoing. The date has been revised to ‘ongoing’ as the project cannot advance without property owner agreement. 17 Begin project development work on Phillips Lane Bike Bridge. 08/15 Complete Project design is 50% complete. Environmental Review per National Environmental Policy Act (NEPA) completed December 2016. California Environmental Quality Act (CEQA) is in progress. Grant funding in the amount of $3.2 million has been obtained and project scope and schedule expanded significantly to include connection to the exiting trail at Taft Street. Productive meetings have been held with UPRR and Caltrans on this project. Easement negotiations will commence upon completion of the CEQA process. 18 Develop a detailed BTP prioritization and implementation plan 08/15 Phase 1 completed Phase 2 – 6/2017 Active Transportation Manager position is now filled and coordinating BAC activities. Phase 1 minor project prioritizations complete and is being maintained. Phase II (major capital projects) prioritization to be worked on in first quarter 2017. 19 Conduct AB1600 Study & Update Infrastructure Fee Program Develop RFP & Work Program (April 2016) Consultant Selection & Work Effort (June 2016) Public Outreach & Hearings (September 2016) Final Adoption (December 2016) 12/16 Revised to 06/17 based on Council approved work program Contract for traffic modeling work awarded and work has begun. Financial consulting hired and developing RFP for study and impact. Proposals received January 2017. 20 Update Multimodal Development Standards, Policies, & Programs Update Zoning Code & Subdivision Regulations (June 2017) Update Transportation Impact Study Guidelines (July 2015) Develop Access Mgmt. Policy / Program (June 2017) 06/17 Multimodal Transportation Impact Study Guidelines completed. Access management policies to be incorporated in zoning and engineering standards update in 2017. Policy and code updates are underway. City received international award from the Institute of Transportation Engineers for 2014 LUCE Update and Multimodal activities. 21 Continue Bicycle Education Activities & Develop and expand active transportation Education & Advocacy Programs. Ongoing Halloween Safety program completed for 2016. Bicycle Rodeo held in September 2016. City now an affiliate Member of the National Association of City Transportation Officials (NACTO). C-12 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 13 22 Implement new Transit Marketing Plan Ongoing Short Range Transit Plan update adopted by Council in September 2016. Marketing plan update being worked on. Phase 1 service changes scheduled for implementation in summer 2017. 23 Complete Short Range Transit Plan with RTA 06/16 Adopted by Council in September 2016. C-13 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 14 Housing: 2015-17 Action Plan (70% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status 1 Monitor the City’s Inclusionary Housing stock for compliance with affordable housing agreements and standards. 06/17 All City Inclusionary Housing has now been monitored. Staff is currently working to compile all surveys to ensure compliance. Further action will be taken should any units be out of compliance with the City’s Affordable Housing Program. In addition, staff recently closed escrow on resale of the Moylan Terrace unit which was found to be out of compliance in August 2016, the home was re-sold to a new moderate income family. 2 Continue to implement Housing Element programs and housing production goals. Ongoing Housing element programs and housing production goals continue to be a top priority for staff. 3 Continue the City’s participation with the Workforce Housing Coalition, San Luis Obispo County Housing Trust Fund and HSOC to identify, evaluate, and implement strategies to increase the production of housing. Ongoing Staff continues to participate with a variety of local organizations to encourage and support the production of housing through various financial mechanisms and development opportunities. 4 Increase coordination and representation of City interests in discussions with the County, non-profit organizations and developers to increase the production of housing. City staff will continue to coordinate and support the City’s advocacy efforts consistent with the adopted legislative platform, Major City Goal, and Housing Element. Ongoing Coordinate of City efforts continues with the County and local non-profits in terms of increasing housing production and advocacy efforts. 5 Continue, and increase where feasible, financial support for Housing Programs. Ongoing Staff continues to increase financial support for housing programs through: CDBG awards, Affordable Housing Fund loans and support to the Housing Trust Fund, as well as supporting projects applying for low income housing tax credits. In September 2016, the Housing Authority’s 46 unit ‘Iron Works’ project received a tax credit award and plans to start construction in mid-2017. Council will soon review a request for $850,000 in Affordable Housing Funds to the Housing Authority of San Luis Obispo for C-14 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 15 Housing: 2015-17 Action Plan (70% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status development of 34 affordable units at Bishop Street Studios. 6 Continue to implement the Inclusionary Housing Program. Ongoing Since June 30, 2016, staff has entered into affordable housing agreements for over 100 units with developers to ensure they provide the necessary affordable units to meet their Inclusionary Housing requirement. 60 of those affordable units will be located in multiple subdivisions within the Orcutt Area Specific Plan. Over $900,000 in affordable housing in-lieu fees have been collected since June 30, 2016. 7 Implement the City’s BEGIN first-time homebuyer program by providing down payment assistance loans to qualifying households. 10/16 Complete As of June 30,2016 all remaining BEGIN funds have been distributed through five down payment assistance loans totaling $260,664. The funds were loaned to three homebuyers in Moylan Terrace (one very-low, and two moderate income households), one moderate income household in the Avivo Townhome development, and one moderate income household who purchased a unit at 3090 Rockview. There are currently no BEGIN funds remaining for down payment assistance loans. 8 Update the City’s long-term affordable housing agreement, deed and note templates consistent with industry standard best practices. 06/16 Complete New long-term affordable housing documents were completed in July 2016 and are now being used on any new units entering the program. 9 Work with Cal Poly to address the link between enrollment and the expansion of campus housing to reduce pressure on the City’s housing supply (HE Program 10.5). Ongoing This remains a top priority. 10 Work with the Housing Authority to develop affordable housing in the Margarita Area Specific Plan. Ongoing On September 12, 2016, the Architectural Review Commission approved HASLO’s 36-unit affordable housing project. HASLO will apply for low income housing tax credits in Summer 2017 and will pursue a C-15 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 16 Housing: 2015-17 Action Plan (70% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status wide range of funding options (including City AHF, CDBG and HOME funds). The second lot to be dedicated to HASLO within MASP is located within the Toscano development. The developer is currently constructing Phase 1 and will be dedicating the lot in Phase 2, 27 units are expected on that lot. 11 Inventory City owned properties suitable for housing and present a proposal to Council on possible opportunities to pursue, if any. 06/16 12/16 The inventory is complete. A draft Council Memo is currently undergoing final review for dissemination in early February. 12 Council consideration of City owned properties and direction as to whether to partner with an affordable housing developer. 10/16 02/17 At this time, no properties have been identified as suitable for an affordable housing project; staff will provide further information to Council in the form of a memo in February 2017. 13 Develop a workforce level of affordability, including incentives, to increase housing options for those making between 121-160% of the Area Median Income (HE Program 2.16). 06/17 Initial background research has been completed. This task will be completed concurrently with the zoning regulations update scheduled to begin Winter 2016. 14 Consider scaling development impact fees for residential development based on size, number of bedrooms and room counts (HE Program 6.31). 12/16 06/17 This task will be tied into overall zoning regulations update and the Citywide Fee Study which is currently underway. 15 Consider incentivizing dwelling units to a minimum size of 150 square feet, consistent with the California Building Code, by reduced impact fees and property development standards (HE Program 9.12). 06/17 This task will be tied into the overall zoning regulations update and the Citywide Fee Study which is currently underway. 16 Evaluate and consider adopting subdivision and ordinance changes to support small lot subdivisions and ownership bungalow court development (HE Program 6.30). 08/16 06/17 This task is near completion. Staff is currently reviewing a draft of the Subdivision Regulations. Alternative small lot subdivision options are being included in this process. C-16 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 17 Housing: 2015-17 Action Plan (70% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status 17 Eliminate or adjust the one-acre minimum lot area for PD overlay zoning (HE Program 6.30). 06/17 Initial research has been completed. Recommendation on PD overlay minimum lot size will be included in the zoning regulations update. 18 Continue to develop incentives to encourage additional housing in the Downtown Core (C-D Zone), including alternatives to calculating residential density, to encourage the development of smaller efficiency units (HE Programs 6.12, 6.13 & 6.27 & LUCE 4.0.28). 06/17 This task will be tied into the overall zoning regulations update. 19 Support employer/employee and employer/developer financing programs and partnerships to increase housing opportunities specifically targeted towards the local workforce. Ongoing A workshop was held on October 18th to begin conversations between People’s Self Help Housing and local employers regarding funding programs. Staff continues to work with housing developers to develop employer sponsored housing programs. 20 Continue to prioritize the use of CDBG funds for affordable housing and homeless services. Ongoing 2017 CDBG Applications closed on October 21st. The Human Relations Commission approved draft recommendations in December, which will be presented to the Council in March. Those recommendations include funding assistance to the homeless shelter, development of a new affordable housing complex, and renovation of transitional housing for youth. 21 Continue to use the AHF to support the HTF’s operating expenses to provide below-market financing and technical assistance to affordable housing developers. Ongoing On October 20, 2015, Council allocated $60,000 from the Affordable Housing Fund to support the Housing Trust Fund as previously approved by the 2015-17 Financial Plan. The funding agreement has been executed and funding is distributed through HTF invoices on an annual basis. All funds have been released to the HTF for the 2015-17 Financial Plan timeframe. 22 Work with developers to include affordable housing units in projects and to complete housing projects in process. Ongoing Many residential projects currently underway are choosing to develop their inclusionary housing requirements instead of paying the in-lieu fee. Staff has prepared affordable C-17 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 18 Housing: 2015-17 Action Plan (70% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status housing agreements for over 150 units across the City since July 2015. Staff meets regularly with developers to ensure proposed inclusionary housing is in in compliance with regulations. 23 Continue to look for new opportunities to use Affordable Housing Fund and grant monies to leverage other funds for affordable housing projects. Ongoing Since June 30, 2016, Council has allocated $300,000 to purchase and resell an affordable unit within Moylan Terrace which was in default under the City’s Equity Share program. AHF’s were also use to help Habitat for Humanity renovate a home for a low income family. HASLO and TMHA have requested $850,000 to help with development costs of Bishop Street Studios, that request will be before Council in February 2017. Staff is also currently meeting with two project developers to discuss AHF loans which will likely be presented to Council in mid-2017. 24 Continue to research and apply for Federal, State and private foundation housing loans and grants. Ongoing In July 2016, the State department of Housing and Community Development announced the City of San Luis Obispo was awarded a Housing Related Parks grant in the amount of $282,650. The Sinsheimer Playground project received this grant and the project is under construction. 25 Provide expedited building permit application review for the HSC. 08/15 Complete A ground breaking celebration for 40 Prado occurred on November 2, 2016. CAPSLO released the RFP in January and will award a construction bid in March. Construction is slated to begin in late March 2017 with completion by December 2017. 26 Provide timely building inspections and ongoing support throughout the HSC’s construction process. Ongoing Staff is providing support throughout the pre-construction process. Once construction begins in March, staff will work diligently to ensure all timelines are met. C-18 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 19 Housing: 2015-17 Action Plan (70% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status 27 Develop a funding agreement between the City and CAPSLO for the HSC that outlines funding amounts, services and expectations for ongoing facility operations. 03/17 A funding agreement will be negotiated in 2017. 28 Continue to support, jointly with other agencies, housing programs, such as Housing First and Rapid Rehousing, for the homeless (HE Program 8.13). Ongoing City staff continues to support programs for the homeless including Housing First, Rapid Rehousing, 50Now, and the Mayors Challenge to End Veteran Homelessness. Staff actively participates in local County efforts and sits on the Homeless Services Coordinating Committee. 29 Fund and use the Infrastructure Investment Fund to facilitate housing projects that are in alignment with the General Plan and City goals. Ongoing Once enough funding has been collected, staff will look for opportunities to use the fund to support affordable housing projects. 30 Develop a Request for Proposals for the Infrastructure Fee Update work plan. 04/16 Complete Task Complete. 31 Select a consultant for the Infrastructure/Impact Fee Update 06/16 01/17 The City is currently reviewing bids/proposals. It is anticipated that a consultant will be selected in January 2017 32 Complete the work effort for the Infrastructure Fee Update (costs, nexus, financing options, right-sizing). 04-07/16 02/17 The selected consultant will begin work on the Infrastructure Fee Update in February 2017. 33 Conduct public outreach for Infrastructure Fee Update. 08-09/16 4/17 This task will be part of the scope of work for the selected consultant. 34 Advisory body and Council consideration of infrastructure options. 10-11/16 5/17 Task not yet initiated, will be dependent on the schedule proposed by the selected consultant. 35 Council adoption of Public Facilities Fee Program. 12/16 09/17 Task not yet initiated, will be dependent on the schedule proposed by the selected consultant. C-19 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 20 Neighborhood Wellness: 2015-17 Action Plan 70% complete) Objective: Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. # Task Completion Date Revised Status 1 Neighborhood Wellness/Community Civility Effort Recommendations Ongoing The Police Department will be going to Council on January 17th to amend the Safety Enhancement Zone during the St. Patrick’s Day period. On January 17, 2016 Police will also be going to Council to introduce the Party Registration program. 2 Neighborhood Match Grant Program initiation 10/15 Complete One recipient has completed their project (Islay Park Trail Clean Up; $1,883 grant). The second recipient has completed the first phase of their project (Cerro San Luis Seasonal Social Gatherings; $3,437 grant). Applications are currently being accepted for the second year of the program and should be awarded in February 2017. 3 Establish and Implement Collaborative Communication Plan 12/15 Complete Plan complete implementation ongoing. 4 Begin Implementation of key measures from Community Civility Committee Ongoing Completed Over summer of 2016, Fire Chief Olson, Police Chief Cantrell and Cal Poly Chief Hughes spoke at 18 events, to over 4,000 parents and caregivers of incoming Freshman for Cal Poly. They discussed social decision making, alcohol, drug use, noise and other topics of concern to public safety. Additionally, Christine Wallace and Jeff Gater provided similar talks to the incoming Freshman about neighborhood wellness concerns, personal responsibility and safety. 5 “Adopt a Block” Pilot Program – SCLC 03/16 3/17 The “Adopt a Block” program was presented to the new SCLC leadership in October 2016 for consideration. 6 Administrative Citation Appeals Process 3/16 Complete Board members appointed by Council March 15, 2016. New appeals forms and notifications, including online appeals materials, administrative guidelines and training materials have been finalized. Hearing officers for C-20 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 21 Neighborhood Wellness: 2015-17 Action Plan 70% complete) Objective: Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. # Task Completion Date Revised Status expedited hearing alternative selected by City Attorney, trained and completed first several rounds of appeals hearings. 7 Public Safety MOU – Cal Poly University Police and SLOPD 09/15 Complete The MOU has proven to be successful with Cal Poly PD and the police department collaborating efforts in identifying and issuing citations for adverse behaviors occurring in the neighborhoods surrounding Cal Poly. 8 Code Compliance Performance Measures Ongoing 2/17 City staff has just implemented the use of tablets in the field for building inspectors, code enforcement officers, and code enforcement technicians. This is a major step in our ability to collect and report on data related to performance measures for code enforcement. 9 Hire staff to implement rental housing inspection (contingent on program adoption) 02/16 Complete The two Code Enforcement Technician IIs have been hired and started work on May 5, 2016. 10 Begin inspections - prioritize properties with code enforcement violations 8/16 Ongoing Inspections of former code case rentals was completed in the middle of August, 2016. Work is in progress with inspections of properties with prior code enforcement violations completed 11 On-going inspections and follow up for rental housing violations Ongoing 7/16 Inspections are underway with between 6-8 inspections performed per day per inspector. 12 Neighborhood pro-active enforcement Ongoing In the last 6 months 32% of the cases opened were for visible storage, and 21% for waste containers. In summer and fall of 2016 police personnel have conducted extensive outreach to include mailers, flyers, social media, print media, community forums, door hangers, personal contacts with problem locations, walk and talks, to name a few. The department has been educated and staffed appropriately to C-21 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 22 Neighborhood Wellness: 2015-17 Action Plan 70% complete) Objective: Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. # Task Completion Date Revised Status respond to neighborhood issues and address adverse behaviors. The Utilities Department coordinated efforts with various other City departments, the Garbage Company, Cal Poly, and the community to conduct clean-up week during Cal Poly move out. This year the City did not have any couch fires during clean-up week and 152 tons of material were removed by the Garbage Company during this coordinated effort. 13 Continue Sidewalk Repairs Ongoing Maintenance crew sidewalk repairs are complete in Pavement Area 8 and Area 1. Various Job Order Contract sidewalk repairs are underway throughout the City. 14 Continue Storm Drain Cleaning, Silt Removal & Storm Drain Replacements Ongoing Storm Drain cleaning work is ongoing. The 2015 storm drain replacement and Albert Drive storm drain project is complete. Design work is underway for Storm Drain Replacements schedule for construction in 2017. Silt removal projects designed and permitted and planned for construction in 2017 based upon need. 15 Complete Neighborhood Street Repair & Sealing 10/16 Roadway sealing and repair work is complete in Pavement Area 8 and Area 1. Design work is underway on the for Madonna and Los Osos Valley Road paving project. 16 Communicate Good Neighbor Expectations to Cal Poly students and parents Summer 2016 The Police Chief, Fire Chief, Deputy Fire Chief, and Neighborhood Outreach Manager led approximately 30 sessions of dialogue with the incoming class of students and their supporters (typically parents) regarding many aspects of social decision making, neighborhood wellness, and the consequences or misconduct as part of a mandatory session of the SLO Days orientation, reaching thousands of attendees. This very frank and professional conversation covered topics such as alcohol, noise, unruly C-22 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 23 Neighborhood Wellness: 2015-17 Action Plan 70% complete) Objective: Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. # Task Completion Date Revised Status gatherings, and real life examples of successes and failures in SLO. C-23 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 24 Laguna Lake Restoration: 2015-17 Action Plan (75% complete) Objective: Initiate implementation of the Laguna Lake Natural Reserve Conservation Plan. # Task Completion Date Revised Status 1 Install new, updated signage at trailheads and along trails Complete site-specific design (06/16) Complete requisition signs and attendant materials (09/16) Installation of updated signs at trailheads and along trails (12/16) 12/16 6/17 Design work in progress. 2 Install accessible paths Complete Site-specific design and project specifications (12/16) Issue Request for Proposals (RFP) and Contractor selection (02/17) Installation of accessible path along lake front (06/17) 06/17 04/18 Public Works Engineering staff are designing this facility in-house and the plans 75% complete. Construction is expected in the Spring of 2017. 3 Install sediment basins Issue RFP for Design / Engineering consultant (07/15) Complete Site-specific designs and project specifications (03/16) Complete Project permitting and environmental document (08/17) 06/17 The project is at 65% designs following Council’s action on September 20, 2016. Proposed a phased project over four years (during spring/summer) in order to ensure water in the lake, minimize environmental impacts, and to be in line with the finance strategies proposed (Community Facility District funding). 4 Begin a dredging project Issue RFP for Design / Engineering consultant (07/15) Site-specific designs and project specifications completed (03/16) Soil samples and water quality tests (03/16) Evaluate disposal site options and secure land tenure agreements, if necessary (05/16) Final project design selection with City Council (09/16) Project permitting and environmental document completed (06817) 06/17 9/18 The project is at 75% following Council’s action on September 20, 2016. Starting the environmental impact report process phase, beginning with holding consulting meetings with permitting agencies. Project permitting to be completed Winter 2017 and project construction to begin Spring 2018. 5 Evaluate Project Financing Options and Mechanisms Issue RFP for economic / municipal finance and public opinion research consultant(s) (07/15) Evaluate financing options and feasibility (02/16) Conduct study session with City Council on financing options and feasibility (03/16) Conduct focused public workshops and community outreach (04/16) 02/17 All tasks complete late 2017 / early 2018. Staff anticipates returning to Council with a detailed financing strategy as part of the work plan for 2017-19. Public opinion research is complete, and additional outreach with property owners and stakeholders will be undertaken. C-24 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 25 Laguna Lake Restoration: 2015-17 Action Plan (75% complete) Objective: Initiate implementation of the Laguna Lake Natural Reserve Conservation Plan. # Task Completion Date Revised Status Final selection of preferred financing option(s) by City Council and resolution of intention as appropriate and legally required. (06/16) Public Hearing with City Council to create financing mechanism and adopt resolution of formation as appropriate and legally required. (09/16) Conduct registered voter election by mail, if needed. (3/17) Proceed with any and all action necessary to fund sediment basin and dredging project implementation in 2017-19. (06/17) C-25 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 26 Fiscal Sustainability and Responsibility: 2015-17 Action Plan (50% complete) Objective: Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. # Task Completion Date Revised Status 1 Establish a performance management and reporting team to identify a set of performance criteria for public reporting based on information the public wants to know and available information already being maintained and reported internally. 6/16 Complete Three performance measures from each department will be included in the 2017-19 Financial Plan. 2 Gather public opinion to establish a baseline for City performance and to determine what information the public is interested in seeing in a new set of online dashboards. 05/16 10/17 The performance measures included in the 2017-19 Financial Plan will be used to create a draft performance dashboard. Public engagement will occur in the summer/fall of 2017 to solicit feedback on the performance measures included in the draft dashboard. 3 Implement a system for ongoing tracking, management, and reporting of performance and service metrics. 01/17 12/17 Feedback on the draft performance dashboard will be incorporated into a final product by 12/17. 4 Work with the Citizen’s Revenue Enhancement Oversight Commission (REOC) to accomplish enhanced reporting on the use of Measure G revenue. Ongoing The REOC was included in the Community Forum which was also the Annual Citizen Oversight Meeting in January 2017. The 2015-16 Annual Community Report will be distributed to the public in March 2017. 5 Continue to implement and track operational efficiencies including alternative service delivery, best management practices, and cost containment measures that preserve the effectiveness of City services and operations. 05/17 6/17 In April 2016, Government Fiscal Officers Association conducted an assessment of the City’s Finance Function. Based on the assessment, staff recommended Efficiency and Effectiveness Initiative adopted by Council in June 2016. Staff begun implementation of Motion project to implement an Enterprise Resource Planning system (ERP). and redesign business processes The project duration is estimated at three years. Staff will continue these efforts based on Council adopted Financial Responsibility Philosophy. 6 Identify and include updated performance measures in the 2017-2019 Financial Plan. 06/17 6/17 This project is underway for the 2017-19 Financial Plan. C-26 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 27 Fiscal Sustainability and Responsibility: 2015-17 Action Plan (50% complete) Objective: Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. # Task Completion Date Revised Status 7 Addressing the City’s long term costs: Develop a budget policy for incorporation in the 2015-17 Financial Plan that reflects policy direction regarding the use of one-time resources. 06/15 Complete A policy was adopted with the 2015-2017 financial plan. 8 Identify and work with a risk management expert to conduct an audit of liability and workers’ compensation claims history and cost trends to ensure appropriate risk management and cost effective coverage. Explore options within CJPIA to control costs as well as other programs offered by other providers, if applicable. 06/16 Completed Given the move from primary (first dollar) insurance coverage for liability claims to an Excess Insurance Program (EIP) the City does not believe an audit is necessary. This EIP program is expected to result in cost savings given the City’s positive liability claims experience. CJPIA plans to develop a similar excess insurance model for their workers’ compensation program and staff will work with CJPIA to evaluate the potential benefits for the City’s workers’ compensation program. In addition, the City continues to make changes identified in a Risk Management Evaluation provided at no additional cost through CJPIA and will continue to actively participate in this valuable program that provides best practices in risk reduction and management. 9 Establish objectives to contain or reduce liability and/or workers’ compensation claims and work with departments to achieve reductions. 06/16 Ongoing Claim reviews on liability and workers’ compensation programs are conducted quarterly with the focus on cost containment/reduction. The City’s safety committee continues to be instrumental in educating staff and promoting a culture of safety. A consultant is working with staff on updating key safety policies and programs. CJPIA provided critical safety training programs at no additional cost to the City. In addition, a Safety and Technical Training Engineer and a Human Resources Analyst dedicated to risk management and safety were hired which will allow a more focused and proactive approach to the City’s risk management program. C-27 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 28 Fiscal Sustainability and Responsibility: 2015-17 Action Plan (50% complete) Objective: Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. # Task Completion Date Revised Status 10 Propose and implement payment to a long-term cost item from year-end fund balance at mid-year as based on policy adopted by the City Council in the 2015-17 Financial Plan. 06/16,06/17 2014-15-year end unassigned fund balance was appropriated with the 2016-17 Supplemental Budget. $750,000 was allocated to pay down CalPERS unfunded liability and $250,000 was allocated to pay down OPEB unfunded liability. $1.9 million was allocated toward implementation of an Enterprise Resource Planning system, investing in the information technology infrastructure, efficiency and effectiveness. 11 Review progress regarding liability and/or workers’ compensation claim reduction 02/17 Ongoing Quarterly liability and worker’s compensation claims reviews with key stakeholders are underway to ensure active case management and to close claims more quickly when appropriate. 12 Continue investment in infrastructure maintenance Ongoing The City adopted a policy as part of the 2015-2017 Financial Plan to prioritize paying unfunded liabilities and deferred maintenance projects with one time revenues. 2016-17 Supplemental Budget allocated $1.625 million toward CIP projects and $2.8 million for Efficiency and Effectiveness Initiative ERP implementation. 13 Continue developing, implementing and reporting on operational efficiencies Ongoing Performance measures for each department are being developed for the 2017-2019 Financial Plan. Operational efficiencies will be evaluated with development of the financial plan. 14 Complete a comprehensive analysis of City costs and fees every five years 08/15 Spring 2017 As a result of transitions in staff, the Finance Director, and other managers involved in this project the date has been adjusted to Spring 2017. 15 Adjust existing fees per Council policy and in accordance with User Cost Recovery Goals Annually This will occur with the consideration of the Spring 2017 in preparation for the 2017-2019 Financial Plan. 16 Review and adjust enterprise fees and rate structures as required to ensure they remain appropriate and equitable. Ongoing The Utilities Department is conducting a capacity and connection fee study that is expected to replace the current C-28 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 29 Fiscal Sustainability and Responsibility: 2015-17 Action Plan (50% complete) Objective: Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. # Task Completion Date Revised Status development impact fee. This should be completed for implementation with the 2017-19 Financial Plan. It is also embarking on a review of its recycled water rates to appropriately charge for this water source. Provided current revenue trends; the drought surcharge is likely to remain in effect for the foreseeable future until a new norm can be determined and rates adjusted appropriately. 17 Monitor receipts of local revenues (such as business licenses, utility user taxes, franchise fees) and initiate effective collection strategies to ensure that revenues and taxes are paid by those who are obligated to pay them. Ongoing Staff has reinstituted reporting TOT on a monthly basis and is following up with any unpaid UUT and business license fees. 18 Implement a business license compliance program using outside consultants to identify unlicensed businesses within the community. 05/16 08/16 Contract has been executed with HdL companies. Implementation is in progress and the program is being developed with the consulting services from HdL. C-29 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 30 Downtown: 2015-17 Action Plan (60% complete) Objective: Adopt a Downtown Concept Plan, develop a plan for expansion of Mission Plaza, and improve safety, infrastructure, and maintenance in the Downtown. # Task Completion Date Revised Status 1 Vision and Economic Vitality Develop RFP for Downtown Concept Plan update in coordination with the update of the City’s zoning ordinance. (08/15) Interview and select consultants (09/15) Complete community visioning, interviews, charrette(s), review of Mission Plaza Assessment project (12/15) Present draft concepts and study findings to City committees and commissions for input (09/16) Present draft concepts and study findings to Council review and approval (Revised to 10/16) Present final Concept Plan and final Mission Plaza Study to Council (Revised to 04/17) Coordinate with the Downtown Association to develop a building inventory and occupancy reporting methodology (Ongoing) Collaborate with the Downtown to develop options for downtown residential parking (10/17) Complete Design for Downtown Renewal (Construction proposed for 2017-18) (06/17) Facilitate completion of Chinatown and Garden Street Terraces private developments (Ongoing) 06/17 A Joint City Council/ Planning Commission Study Session was held on October 4, 2016 to present the draft concepts for the Downtown Concept Plan update. Public Workshops, to solicit feedback on the draft concepts for the Downtown Concept Plan update, will be held in November 2016. Draft concepts presented to City Council in October 2016. City Council feedback is currently being developed into preferred alternative concept plan. Mission Plaza Assessment Project draft Concept Plan approved by Council. Staff is currently working through City Commissions to gather input in order to present the final draft plan to Council Summer/Fall 2017. Monterey Street stores are now open in the Chinatown Project including H&M, Lululemon, and William Sonoma and more forthcoming. The Garden Street Terraces projects is progressing rapidly 2 Safety Provide one police officer for the downtown and additional personnel as available Provide Community Action Team (CAT) to combine enforcement, intervention & education Coordinate with outreach groups for the homeless Coordinate with other law enforcement agencies Expand use of safety cameras (06/16) Completed In May of 2016 Council approved the continuance of the “Make Change Count” meter campaign from a pilot program to a permanent program. Three cameras have been purchased and placed in the Downtown core and are activated for use. Staffing has allowed the placement of two bicycle officers Downtown covering dayshift, seven days a week. The C-30 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 31 Downtown: 2015-17 Action Plan (60% complete) Objective: Adopt a Downtown Concept Plan, develop a plan for expansion of Mission Plaza, and improve safety, infrastructure, and maintenance in the Downtown. # Task Completion Date Revised Status CAT team continues to provide outreach, intervention and education involving the homeless population downtown. 3 Infrastructure and Maintenance Complete Sidewalk Repairs & Tree Replacements (06/16) Complete Sidewalk Repairs & Tree Replacements (06/17) Replace Higuera Lighted Crosswalk (06/17) Upgrade Mission Plaza Railing (06/16) Upgrade Mission Plaza Railing (06/17) Start Construction of Marsh Street Bridge (06/16) Complete Design for Mission Plaza Restroom – Construction proposed for 2017-18 (06/17) Implement Parking Program organizational change (01/16) Initiate Environmental Study for the Palm / Nipomo Parking Structure (01/17) Develop and implement annual report outlined in the Public Works Strategic plan, to report annually on Downtown Support (06/16) Continue Downtown Street Sweeping (Ongoing) Continue Downtown Sidewalk & Bubblegum Alley Steam Cleaning (Ongoing) Continue Downtown Trash Pickup & Graffiti Removal (Ongoing) Continue News Rack Enforcement & Permitting Program (Ongoing) 06/17 Sidewalk repairs are currently on-going. Three task orders have been approved for construction, with additional task orders in process. Marsh Bridge design and environmental document is close to completion. Property acquisition, permitting, and the finalization of NEPA documentation will mean the project will begin construction in 2018 at the earliest. The Palm Nipomo Parking Structure Environmental impact report underway. New pedestrian signal heads installed at Broad/Marsh and other pedestrian improvements installed as part of GST project. Ongoing work efforts the Downtown include the following regular activities: Street Sweeping, Sidewalk & Bubblegum Alley Steam Cleaning, Trash Pickup & Graffiti Removal, and implementation of the News Rack Enforcement & Permitting Program. C-31 Fire Station #2 Restroom & Dorms Margarita Lift Station Replacement Reservoir #2 Replacement Johnson Waterline Water Resource Recovery Facility Upgrade Broad Street Bike Boulevard Johnson Street Paving 2015 Neighborhood Paving 2016 Marsh Street Bridge Highland & Chorro Bike Improvements City Wayfinding Signs Los Osos Valley Road Interchange Storm Drain System Replacement 2015 Curb Ramps 2015 Jack House Elevator Removal Laguna Lake Natural Reserve Accessible Trail Court Resurfacing Olympic Pool Replastering Golf Course Restrooms Laguna Lake Dredging & Sediment Management 100%100%20%100%15%75%100%100%80%100%100%100%100%100% 100%100%100%65% 100%5% 100% 100% 100%100% 100%100%95%100%1%100% Status of Major CIP Projects (as of 12/31/16) Under Study or Design Under Construction Public Utilties Transportation Leisure, Cultural, & Social Services Community Development Purchased 16-17 New Equipment &… Police Audio Recording Upgrade Police 911 System Upgrade I.T. - Citywide Window 7 Upgrade I.T.- City/County Parcel Project 63% 95% 100% 100% 40% Status of Major Fleet & I.T. Replacements C-32 Section D RECENT FINANCIAL AND REVENUE REPORTS D-1 D-2 Monthly TOT Report November 2016 November 30, 2016 This report covers the City's transient occupancy tax (TOT) revenues for November 2016 compared with the two prior years. As reflected below, revenues for the month of November 2016 are up by 6.2% from the same month last year and up 1.3% year to date over the prior year. Currently this report covers 40 hotel establishments representing 2,226 rooms. It also includes $5028 collected from 41 Homestay properties year to date. For more information, please call Marjorie Hernandez at (805) 781-7436. Year End TOT Revenues Prior Year Last Year This Year2014-15 2015-16 2016-17 Amount PercentJuly$766,299 $845,455 877,391 31,936 3.8%August 739,801 775,448 765,232 (10,216) -1.3%September 560,728 643,127 650,117 6,991 1.1%October 597,372 642,221 628,049 (14,172) -2.2%November 478,904 467,939 497,162 29,223 6.2%Year To Date Total 3,143,105 3,374,190 3,417,952 43,762 1.3%December 393,761 429,600January402,940 387,304February433,861 466,915March522,702 559,235April613,487 609,409May603,617 598,093June728,694 728,694 This report is based on the amounts reported by the operators for the month in which the tax is due. Last Year Vs This YearIncrease (Decrease) D-3 San Luis Obispo, California 2016-17 Mid-Year Budget Review For the 2015-17 Financial Plan SLOCITY.org © City of San Luis Obispo