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HomeMy WebLinkAbout02-20-2018 Item 01 - Mid-Year Financial Report 2017-18 Fiscal Year Meeting Date: 2/20/2018 FROM: Derek Johnson, City Manager Xenia Bradford, Finance Director Alex Ferreira, Budget Manager Prepared By: Alex Ferreira, Budget Manager SUBJECT: 2017-18 MID-YEAR BUDGET REVIEW RECOMMENDATION 1. Receive and discuss an update of changes in the financial position (Attachment A, Sections A &B) based on revised projections for all funds for the 2017-18 fiscal year; and 2. Receive an update on Status of Major City Goals and Other Important Objectives (Attachment A, Section C); and 3. Approve Resolution (Attachment B) adopting changes to 2017-18 budget. REPORT IN BRIEF The purpose of the Mid Year Budget Review for 2017-2018 is to provide a comprehensive overview of the City’s fiscal condition and provide a status report on Major City Goals put forth in the 2017-2019 Financial Plan. Lastly, this report provides recommendations for the use of one - time funds in excess of reserve policy requirements. DISCUSSION The accompanying Mid-Year Budget Review for 2017-18 provides a comprehensive overview of the City’s fiscal condition at the mid-point of the fiscal year. The Transmittal Memorandum (starting on page A-1) sets forth a concise summary of key General Fund revenue and expenditure trends since adoption of the 2017-19 Financial Plan in June 2017. The report’s main focus is on the General Fund; however, updated information is provided for each fund. The report also includes a comprehensive status of Major City Goals, Capital Improvement Program (CIP) projects and Other Important Objectives. Background The City’s two-year Financial Plan provides for the submittal of a report on financial status to the Council every six months. For fiscal monitoring purposes, on-line access to up-to-date information is available to all departments. Additionally, focused reports are issued to the Council and staff on key revenues such as sales tax, transient occupancy tax and investments, as well as ad hoc reports as needed. However, the formal submittal of a review at the mid-point of the fiscal year provides an opportunity to take broader look at the City’s financial picture, including: Packet Pg 11 1 1. Updating beginning fund balance projections based on actual results for the prior fiscal year as confirmed in the audit and reported in the Comprehensive Annual Financial Report (CAFR). 2. Analyzing revenue trends since adoption of the Financial Plan and revising revenues and ending fund balance projections accordingly. 3. Identifying and presenting any areas of uncertainty or concern and recommending corrective action or additional funding if required. 4. Presenting the status of major City goals, CIP projects and other important objectives. Report Organization Section A: Transmittal Memorandum: Provides a narrative overview of the City’s fiscal environment. Provides an update to 2017-18 fund balance projections with previous fiscal year audited fund balance results and the most recent revenue and expenditures trends. Provides a summary of administrative and previously adopted by Council budget adjustments since the adoption of 2017-19 Financial Plan. This memorandum provides with Mid-Year recommended budget adjustments for Council approval and recommendations for the use of surplus fund balance. Section B: Financial Condition Summaries: Provides comprehensive presentations and updates of projected revenues and expenditures based on staff’s best and most prudent professional judgment. Updates beginning fund/working capital balances based on actual audited 2016-17 results and projected ending balances for 2017-18 based on changes from original budget estimates. Section C: Status of Goals and Objectives: Provides a report on Major City Goals, Other Council Objectives, and the status of major Capital Improvement Plan (CIP). Section D: Recent financial and revenue reports: Provides the most recent Quarterly Financial Report, Quarterly Sales Tax Newsletter and Monthly TOT Report. Summary of Mid-Year Budget Review Results 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 36% of total General Fund revenues, showed a slowing down in growth. Due to prudent expenditure management in 2016-17, the City has one-time unallocated funds in the amount of $5.9 million; however, further draw on this fund balance is projected within this fiscal year due to revised projections of revenues and expenditures as discussed in this report. Unassigned fund balance for General fund including Local Revenue Measure sub-fund is projected at $5.5 million at the end of fiscal year 2017-18. There are no Local Revenue Measure funds not previously allocated available to be considered for allocation. The unassigned fund balance of $5.5 million, is partially recommended to fund public safety Capital Improvement Project on page A-11 in the amount of $1.3 million and the remainder in the amount of $4.2 million is recommended to be set aside for designation for future transfer into Packet Pg 12 1 section 115 Pension Trust Fund. The recommendation is based on the Council’s direction for the Fiscal Health Response Plan Budget Foundation from December 12, 2017. 2017-19 MCG ACTION HIGHLIGHTS TO DATE Housing 30% Complete Facilitate increased production of all housing types designed to be economically accessible to the area workforce and low and very low-income residents, through increased density and proximity to transportation corridors in alignment with the Climate Action Plan. In July 2017, the City updated the Accessory Dwelling Unit Ordinance. In response to the California Housing Legislation package that was approved in September 2017, staff is currently evaluating how compliance with SB 35 and AB 1505 can help the City achieve the Housing Element goals and policies. Staff recently confirmed that the City is not subject to SB 35 streamlining requirements because SLO is one of 13 jurisdictions in the State that is in compliance with its Regional Housing Needs Allocation (RHNA) responsibilities. In November 2017, the effort to update the RHNA for 2019 kicked off with SLOCOG. Also, The City began maintaining an Affordable Housing Interest list, so that interested individuals can receive notification as affordable for-sale and rental units become available in the City. In December 2017, the HRC reviewed and recommended CDBG and GIA funding. As of January 2018, the Affordable Housing Fund has a balance of approximately $1.75 million. Multi-Modal Transportation 50% Complete Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range Transit Plan. In September 2016, the Council adopted the Short Range Transit Plan and service changes consistent with the plan will be implemented in summer 2017. The most significant and publicly visible of these changes include the purchase of three fully modernized transit vehicles aimed at enhancing the riding experience with new vehicle amenities. However, even more significant accomplishment for Transit this year is the execution on the majority of the operational changes recommended by the City’s adopted Short-Range Transit Plan (June 2017). These changes reorganize SLO Transit in a way that can be built upon for the next 10 to 15 years, creates a system that is much more resilient to system impacts (e.g. roadwork, surge ridership, etc.) and most importantly, increases the safety of the service that directly touches the lives our residents more than 1.1 Million times a year. Climate Action 20% Complete Implement Climate Action Plan, assess requirements to achieve a “net-zero carbon City” target, and implement cost-effective measures, including implementation of a Sustainability Coordinator and formation of a Green Team. In July 2017, the Special Projects Manager position took on the role and responsibilities of the Sustainability Coordinator. In November, the position was reclassified to a Sustainability Manager position after a staff transition. The purpose of the reclassification was to strategically station the position to maximize coordination and influence over key climate actions. The Packet Pg 13 1 recruitment was filled in February 2018 and the new Sustainability Manager will begin work in March 2018. In July 2017, the City “Green Team” was established with represen tatives from each City department. In October 2017, a Memorandum of Understanding between the City and the Climate Action Task Force (Task Force) was approved to establish the Task Force as the “Community Climate Action Coalition” to help achieve the objectives outlined in the Climate Action Major City Goal work program. Also in October, the City Council limited the use of single use plastic beverage straws citywide and other measures for city facilities and special events. In October, the City Council adopted Ordinance 1637 providing for an expedited and streamlined permitting process for electric vehicle charging stations. In November, the data collection for the update of the GHG emissions inventory was initiated. Finally, in December, the City Council directed staff to pursue a Community Choice Energy Program. City staff has initiated outreach to other jurisdictions in the County to support this effort. Fiscal Sustainability & Responsibility 25% Complete Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, unfunded liabilities, and infrastructure financing. The City’s fiscal health has been evaluated through an extended to ten years long-term fiscal analysis for all major funds. A Fiscal Health Response Plan to address identified $8.9 million structural budget gap due to significant increases in pension costs to pay down unfunded liabilities has been developed and conceptually approved by Council. On December 12, 2017, Council set Fiscal Health Response Plan Budget Foundation, providing with general direction and components for how the reductions will be achieved over a three-year period starting with 2018-19 Supplemental budget through 2019-21 Financial Plan. On April 14, 2018, Fiscal Health Response Plan Strategic Budget Direction will be presented to Council providing with strategic direction for 2018-19 Supplemental Budget and setting strategic policy direction for 2019-21 Financial Plan Development. Capital Improvement Program has also been reviewed by staff over a 10-year period and initial findings were presented to Council on January 16, 2018. Staff presented the funding needs to maintain existing infrastructures, to fund major rehabilitation projects, and to fund new projects. Staff will return to Council on April 17, 2018 with recommendations for funding options, including financing options and revenue measure recommendations, and timeframe to complete the identified projects. The City continues to address closure of the Diablo Canyon and prepare for the impacts to the region due to significant loss of jobs and property tax value. California Public Utilities Commission rejected the PG&E settlement with the local governments based on an administrative judge ruling. The City is pursuing a legislative strategy to address the ruling and to advocate for legislative relief to the region. Packet Pg 14 1 2017-19 OTHER IMPORTANT OBJECTIVES (Objectives) ACTION HIGHLIGHTS TO DATE Downtown Vitality 25% Complete Continue to improve safety, infrastructure investment, and maintenance in the Downtown and support Downtown Association’s proposal to consider a Downtown improvement district. Maintenance work continues in the downtown core which includes tree maintenance, sidewalk scrubbing, and street sweeping. Replacement of the Marsh Street Bridge design work continues and is scheduled to start construction in Spring of 2019. The next Downtown Renewal Project located in the 800 block of Higuera Street is delayed and anticipated to start construction in Summer of 2018. Planning work for the Downtown Concept Plan and Mission Plaza Concept Plan is complete. Implementation of portions of the Mission Plaza Concept Plan will commence in the summer of 2018. The Community Action Team and Bicycle Patrols continue to maintain public safety by focusing efforts in addressing chronic offenders and evening patrols within the downtown. Continued coordination with the Downtown Association to educate the community on homelessness issues is underway. Police Department coordination with the County of San Luis Obispo to expanded mental Health Services is underway and implementation planned for 2018. CONCURRENCES The City leadership team concurs with the findings in this report. ENVIRONMENTAL REVIEW This is not a project under CEQA. FISCAL IMPACT The following budget adjustments are recommended for Council approval. Packet Pg 15 1 Table A Fiscal Year 2016-17 Mid-Year Adjustment Requests Department/ Fund Budget Action Adjustmen t Amount Council Action Requested General Fund Decrease in Revenue ($312,000) Approve decrease in revenue due to; sales tax decline of $607 thousand, offset by increase in property tax, property tax in lieu of VLF, and franchise fees of $195 thousand, $44 thousand, and $56 thousand, respectively. Fire Increase in Revenue $1,500,000 Approve increase to revenue due to recognition for Mutual Aid Reimbursement revenue. Fire Increase in Expenditure $1,200,000 Approve increase to expenditures due to recognized expenses for Mutual Aid Reimbursement. Development Services Change to Fund Balance ($382,000) Approve designation re-classification of fund balance to development services due to incorrect classification at 2016-17 fiscal year end close. . Total General Fund ($394,000) Law Enforcement Grants Fund Increase in Expenditure $90,000 Approve correction to original budget of $75 thousand and $15 thousand based on updated grant receipt information. Corresponding revenue was recognized with the original adopted budget less $8,500 adjustment shown below. Law Enforcement Grants Fund Increase in Revenue $8,500 Approve increase revenue due to updated information based on grant receipt. Total Law Enforcement Fund ($81,500) Water Increase in Revenue $400,000 Projections for water development impact fees which were budgeted conservatively, are being increased to reflect revenue received through December. This is a positive impact to fund balance. Sewer Increase in Revenue $129,000 The budget for sewer development impact fees is being increased to reflect revenue received as of December. This is a positive impact to fund balance. Parking Increase in Revenue $891,000 Approve increase to revenue due to rate increases implemented after budget adoption. This is a positive impact to fund balance. Public Works Increase in CIP Expenditure $1,288,000 Approve Farmers Market Security Bollards Capital Improvement Project detailed on page A-11 of the report. Packet Pg 16 1 ALTERNATIVES The Council may elect not to make adjustments to the revenue and expenditures operating budgets. This is not recommended as the proposed changes are reflective of the staff best professional review of revenue trends and recognition of expenditures for Mutual Aid as well as corrective action to Development Review Designation, which is recommended for compliance with Council fiscal policies. Council may elect not to appropriate $1.2 million for the Capital Improvement Program. The project detailed on page A-10 of the report and is recommended to be funded at this time to address public safety at the Farmer’s Market. Council may elect not to designate $4.3 million to fund Section 115 Trust. This action is not recommended per Council’s budget direction to address the ongoing structurally unbalanced budget through Fiscal Health Response Plan and Trust formation to address unfunded liability. Attachments: a - Council Reading File Mid-Year 2017-18 b - Resolution c - Summary of Budget Adjustments Packet Pg 17 1 RESOLUTION NO. (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING CHANGES TO THE 2017-18 BUDGET WHEREAS, the City Council adopted the 2017-18 Financial Plan on June 20, 2017, which established comprehensive financial and policy guidelines for fiscal years 2017-18 and 2018-19; and WHEREAS, in accordance with the City’s Budget and Fiscal Policies, staff has completed a review of the city’s revenue and expenditure trends and has developed revised budget amounts which are explained and compiled in the Mid-Year Budget Review; and WHEREAS, the City Manager has recommended the approval of budget amendments summarized in Attachment C. and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: a)The revised revenue and expenditure forecast amounts for the 2017-18 identified in the Mid-Year Budget Review presented on this date are hereby adopted as the revised budget for 2017-18. Upon motion of ________________, seconded by _________________, and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted on February 20th, 2018. _____________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: Packet Pg 18 1 _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Pg 19 1 ATTACHMENT C: BUDGET AMENDMENTS Fiscal Year 2016-17 Mid-Year Adjustment Requests Department/ Fund Budget Action Adjustment Amount Council Action Requested General Fund Decrease in Revenue ($312,000) Approve decrease in revenue due to; sales tax decline of $607 thousand, offset by increase in property tax, property tax in lieu of VLF, and franchise fees of $195 thousand, $44 thousand, and $56 thousand, respectively. Fire Increase in Revenue $1,500,000 Approve increase to revenue due to recognition for Mutual Aid Reimbursement revenue. Fire Increase in Expenditure $1,200,000 Approve increase to expenditures due to recognized expenses for Mutual Aid Reimbursement. Development Services Change to Fund Balance ($382,000) Approve designation re-classification of fund balance to development services due to incorrect classification at 2016-17 fiscal year end close. . Total General Fund ($394,000) Law Enforcement Grants Fund Increase in Expenditure $90,000 Approve correction to original budget of $75 thousand and $15 thousand based on updated grant receipt information. Corresponding revenue was recognized with the original adopted budget less $8,500 adjustment shown below. Law Enforcement Grants Fund Increase in Revenue $8,500 Approve increase revenue due to updated information based on grant receipt. Total Law Enforcement Fund ($81,500) Water Increase in Revenue $400,000 Projections for water development impact fees which were budgeted conservatively, are being increased to reflect revenue received through December. This is a positive impact to fund balance. Sewer Increase in Revenue $129,000 The budget for sewer development impact fees is being increased to reflect revenue received as of Packet Pg 20 1 December. This is a positive impact to fund balance. Parking Increase in Revenue $891,000 Approve increase to revenue due to rate increases implemented after budget adoption. This is a positive impact to fund balance. Public Works Increase in CIP Expenditure $1,288,000 Approve Farmers Market Security Bollards Capital Improvement Project detailed on page A- 11 of the report. Packet Pg 21 1 Page intentionally left blank. Packet Pg 22 1 2017-18Mid-Year Budget Review102-20-2018 Item 1, Staff Presentation RecommendationsReceive and discuss changes in financial position for 2017-18Receive an update on the Status of Major City Goals and Other Important ObjectivesAdopt Resolution adopting changesto 2017-18 Budget.02-20-2018 Item 1, Staff Presentation Presentation Outline31. Budget process2. Year-end results3. Mid-Year trends4. Recommendations for budget adjustments5. Major City Goals UpdateBX26BX2702-20-2018 Item 1, Staff Presentation 2017-182016-17 CAFR2017-18 Mid-YearFiscal Health Response Plan2018-19 Supplement2019-21Financial PlanBudget ProcessSupplemental Budget Direction & 2019 -21 Financial Plan Policy DirectionBudget Process02-20-2018 Item 1, Staff Presentation General Fund: Revenues derived primarily from taxes and service charges. Enterprise Funds (Water, Sewer, Parking, Transit) –Business Like activity funded by revenues derived from the activity. OPERATINGCAPITALOPERATING CAPITALBudget ProcessCity’s fund structure02-20-2018 Item 1, Staff Presentation Fiscal Sustainability & Responsibility6OPERATINGFiscal Health Response Plan (FHRP)1. Operating Reductions2. Revenue3. ConcessionsCAPITALCIP 2035(10 – Year CIP)1. Local Revenue Measure (GF)2. New Revenue Measure (GF)3. AB 1600 Fees Budget ProcessJD202-20-2018 Item 1, Staff Presentation Revenue Measures Timeline7ElectionRevenue Ballot MeasuresCitizen Satisfaction SurveyStrategic DirectionApril 17Feb - MarchJuneNovemberBudget Process02-20-2018 Item 1, Staff Presentation 2016-17 Year-End Results02-20-2018 Item 1, Staff Presentation 2016-17 Year-End General Fund Balance9Fiscal Year End 2017Non-Spendable$3,173,248Restricted 128,102Committed 9,428,034Assigned 11,043,478Unassigned2,723,292Total Fund Balance $26,496,154Year End Results• $5.9 million available for appropriationBX2802-20-2018 Item 1, Staff Presentation Local Revenue Measure•Ranger Services•Transportation Planning & Engineering•Traffic Signal Technician•Police Patrol Officers & Sergeant•Streets Maintenance Worker•Code Enforcement Staff•Creek & Flood Protection•Park Improvements•Open Space Acquisition•Bicycle Improvements•Traffic Signal Upgrades•Street Reconstructing & Resurfacing•Storm Drain ReplacementOperating34%Capital66%2016-17 Uses - $6.1 millionYear End Results02-20-2018 Item 1, Staff Presentation 2017-18 Mid-Year Trends02-20-2018 Item 1, Staff Presentation Historical Trend: Total Revenue12Year End Results$57.6$66.5$69.6$75.0$73.6$77.4$40$45$50$55$60$65$70$75$8012-13 13-14 14-15 15-16 16-17 17-18$ MillionsGeneral Fund (Including LRM)BudgetActualBX33FA5BX39BX4002-20-2018 Item 1, Staff Presentation $21.1$22.6$22.8$25.1$24.5$24.4$19$20$21$22$23$24$25$2612-13 13-14 14-15 15-16 16-17 17-18$ MillionsSales Tax$12.7$12.6$13.5$14.3$15.1$15.8$5$7$9$11$13$15$1712-13 13-14 14-15 15-16 16-17 17-18$ MillionsProperty TaxHistorical Trend: Tax Revenue13Year End ResultsBudgetActualNote: Sales Tax 15-16 increase due to one time true up payment for Triple Flip.BX37BX3802-20-2018 Item 1, Staff Presentation General Fund (Including LRM)2016-17 Year-End Actuals vs. Final Budget14Revenue: $11K over budgetOperating Expenditure: $4M under budgetYear End Results$73.6$77.4$73.6$40$45$50$55$60$65$70$75$8012-13 13-14 14-15 15-16 16-17 17-18$ MillionsRevenues$76.0$76.7$80.0$40$45$50$55$60$65$70$75$80$8512-13 13-14 14-15 15-16 16-17 17-18$ MillionsOperating ExpendituresBudgetActualFA3BX35BX3602-20-2018 Item 1, Staff Presentation Mid-Year Budget AdjustmentsDept/Fund ActionAmountAction RequestedGeneral FundDecrease in Revenue($312,000)Approve decrease in revenue due to; sales tax decline of $607 thousand, offset by increase in property tax, property tax in lieu of VLF, and franchise fees of $195 thousand, $44 thousand, and $56 thousand, respectively.FireIncrease in Revenue$1,500,000Approve increase to revenue due to recognition for Mutual Aid Reimbursement revenue.FireIncrease in Expenditure$1,200,000Approve increase to expenditure due to recognized expenses for Mutual Aid Reimbursement.Development Services Change to Fund Balance($382,000)Approve designation re-classification of fund balance to development services due to incorrect classification at 2016-17 fiscal year end close. Total General Fund($394,000)Mid-Year Trends02-20-2018 Item 1, Staff Presentation Mid-Year Budget AdjustmentsDept/Fund ActionAmountReasonLaw Enforcement Fund Increase in Expenditure ($90,000) Approve correction to original budget of $75 thousand and $15 thousand based on updated grant receipt information. Corresponding revenue was recognized with the original adopted budget less $8,500 adjustment shown below.Law Enforcement Fund Increase in Revenue$8,500Approve increase revenue due to updated information based on grant receipt.Total Law Enforcement Fund($81,500)Mid-Year Trends02-20-2018 Item 1, Staff Presentation Mid-Year Budget AdjustmentsDept/Fund ActionAmountReasonWater FundIncrease in Revenue$400,000Projections for water development impact fees which were budgeted conservatively, are being increased to reflect revenue received through December. This is a positive impact to fund balance.Sewer FundIncrease in Revenue$129,000The budget for sewer development impact fees is being increased to reflect revenue received as of December. This is a positive impact to fund balance. ParkingIncrease in Revenue$891,000Approve increase to revenue due to rate increases implemented after budget adoption. This is a positive impact to fund balance.Public WorksIncrease in CIP Expenditure$1,288,000Approve Farmers Market Security Bollards Capital Improvement Project detailed on page A-11 of the report.Mid-Year Trends02-20-2018 Item 1, Staff Presentation 2017-18 Recommendations1802-20-2018 Item 1, Staff Presentation 2017-18 Year-End General Fund Balance Projection19Fiscal Year End 2018Non-Spendable $0Restricted 128,102Committed0Assigned11,425,478Unassigned5,591,679Total Fund Balance$17,145,259Of the $5.5 million unassigned fund balance it is recommended;• Fund Farmers’ Market Security Bollards capital improvement project of $1.3 million.• Remaining $4.2 million is recommended to be set aside for designation for future transfer into section 115 Pension Trust Fund. Recommendations02-20-2018 Item 1, Staff Presentation New CIP Project: Farmers’ Market Security Bollards1) Growing concerns regarding Farmers’ Market security.2) Proposal to install a combination of manual/removeable and auto/retractable bollards in street entrances.3) Bollard type and location will be determined in consultation with the Police & Fire Departments, and the Downtown Association. 4) Estimated to cost $1.28 M.Recommendations02-20-2018 Item 1, Staff Presentation Section 115 Pension Trust Designate $4.2 m for Pension TrustInternal Revenue Service Code Section 115 Funds set aside in the trust may be used only to make payments for pensionsRequires and IRS certified letter (management firm)Recommendations02-20-2018 Item 1, Staff Presentation Status of Major City Goals & Other Important Objective2202-20-2018 Item 1, Staff Presentation 2017-19 Major City Goals and Important ObjectivesMajor City Goals• Housing• Multi-Modal Transportation• Climate Action• Fiscal Sustainability & ResponsibilityOther Important Objective• Downtown Vitality23MCG Update02-20-2018 Item 1, Staff Presentation Housing -30% CompleteAdopted New Accessory Dwelling Unit OrdinanceMajor Project Entitlements – Avila Ranch, San Luis RanchAffordable Housing Fund Award –Courtyard at the Meadows24MCG Update02-20-2018 Item 1, Staff Presentation • Purchase of three fully modernized transit vehicles aimed at enhancing the riding experience.• Buffered and Green Bike lanes on LOVRand Madonna.Multi-Modal Transportation 50% Complete25MCG Update02-20-2018 Item 1, Staff Presentation Climate Action-25% CompleteGreen Team & Task Force establishedReceived Council direction on Community Choice EnergyLimited single-use plastic bottles and beverage straws26MCG Update02-20-2018 Item 1, Staff Presentation • Fiscal Health Response Plan (FHRP) has been developed and conceptually approved by Council.• On April 17, 2018, FHRP strategic budget direction will be presented to Council.• 10 year Capital Improvement Program has been reviewed by staff and will be presented to Council on April 17, 2018 with recommendations for funding options and timeframe to complete the identified projects.Fiscal Sustainability & Responsibility25% Complete27MCG Update02-20-2018 Item 1, Staff Presentation Other Important Objectives Highlights• Replacement of March Street Bridge design work continues and is scheduled to start construction in Spring 2019.• Downtown Concept Plan and Mission Plaza Concept Plan is complete.• The Community Action Team and Bicycle Patrols continue to maintain public safety.• The addition of a full-time Mental Health professional to the Police Department’s Community Action TeamDowntown Vitality 25% Complete28MCG Update02-20-2018 Item 1, Staff Presentation Status of Major Capital Improvement Program Projects02-20-2018 Item 1, Staff Presentation Major CIP UpdateStatus of Major Capital Improvement Program ProjectsMadonna/LOVR Street Rehabilitation: 100% Complete Sinsheimer Park Playground: 100% CompleteWRRF: 60% Design CompleteBX3402-20-2018 Item 1, Staff Presentation Recommendations1. Receive and discuss an update of changes in financial position revised projections for all funds for the 2017-18 fiscal year, and2. Receive an update on Status of Major City Goals and Other Important Objectives, and3. Adopt a Resolution entitled “ A resolution of the City Council of the City of San Luis Obispo, California, approving changes to the 2017-18 Budget.”3102-20-2018 Item 1, Staff Presentation