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HomeMy WebLinkAboutMid Year 2017-18 2017-18 Mid-Year Budget Review 2017-19 Financial Plan MID-YEAR BUDGET REVIEW: 2017-18 February 2018 HEIDI HARMON, MAYOR CARLYN CHRISTIANSON, VICE MAYOR DAN RIVOIRE, COUNCIL MEMBER AARON GOMEZ, COUNCIL MEMBER ANDY PEASE, COUNCIL MEMBER DEREK JOHNSON, CITY MANAGER Prepared by the Department of Finance Xenia Bradford, Director of Finance Alex Ferreira, Budget Manager Rico Pardo, Accounting Manager/Controller Mika McGee, Administrative Assistant Kelly Medina, Administrative Assistant TABLE OF CONTENTS A. Transmittal Memorandum Overview A-1 Summary of Significant Findings A-3 Development Services Designation A-4 General Fund Balance A-5 CIP Plan A-10 Conclusion A-13 B. Financial Condition Summaries Revenue Revised Budget 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 2017 D-1 Monthly TOT Report: November 2017 D-3 Overview C-1 Housing C-4 Multimodal Transportation C-7 Climate Action C-10 Fiscal Sustainability and Responsibility C-12 Downtown Vitality C-18 Status of Major CIP Projects C-21 Section A TRANSMITTAL MEMORANDUM February 20, 2018 TO: Mayor and City Council FROM: Derek Johnson, City Manager Xenia Bradford, Finance Director Alex Ferreira, Budget Manager SUBJECT: 2017-18 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 immediately and 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, and other objectives. 4. Identification of any budget adjustments that require Council action at Mid-Year. 2017-18 fiscal year is the first year of 2017-19 Financial Plan. The City adopts two-year financial plans that set the direction for the City's operations for the two-year cycle. Each financial plan development starts with review of long- term financial forecasts and community input to inform the direction for Council adopted Major City Goals and Other Important Objectives for the City to achieve over the two-year financial plan. During the 2017-19 Financial Plan development, California Public Employees' Retirement System (CalPERS) adopted a significant change in their policy affecting actuarial valuations which resulted in significant increases in required payments for pensions for all agencies participating in the CalPERS retirement plans. Due to this change, long-term financial forecasts showed significant budget gap in operating budgets. The Council took action during the 2016-17 fiscal year to immediately put in place Fiscal Health Contingency Plan that tightened internal oversight of expenditure controls requiring additional approvals and simultaneously put forth further analysis of the budget gap to determine short-term versus long-term impacts. The Council also adopted a Fiscal Sustainability and Responsibility Major City Goal to continue to implement he City's Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. In the fall of 2017, staff engaged the community and employees, and in November of 2017, Council was presented with a plan to adopt a Fiscal Health Response Plan to reduce identified $8.9 million budget gap over a period of three- years starting with 2018-19 Supplemental Budget and through 2019-21 financial plan. The mid-year report updates with the fund balance projections for all funds, provides with trend analysis for revenue and expenditures through mid-point and updates on the progress for Major City Goals and Other Important Objective. This mid-year budget update shows that the City started the year with all fund balances meeting policy requirements. The fund balances for each fund are updated with audited results that were presented to Council with the Comprehensive Annual Financial Report on January 16, 2018. Sales tax projections for 2017-18 have been lowered by $607 thousand in total due to two primary factors; the decline in sales in general consumer goods, which is a statewide trend due to increase in on-line non-taxable purchases and the closure of Sears. Sales tax was also temporarily negatively impacted by low fuel prices, which have since risen back to original forecast levels. Property A-1 tax estimates received from the County of San Luis Obispo, came-in higher by $239 thousand including an increase in property tax in lieu of vehicle license fees (VLF) of $44 thousand. Franchise fees are expected to come in higher than budget by $56 thousand due to recent trends. 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. Overall, General Fund revenue sources are estimated to increase by $1.2 million. Mutual-Aid revenue and expenditure is requested as an amendment to the budget for both revenue in the amount of $1.5 million and expenditures in the amount of $1.2 million, resulting in a net positive impact to fund balance in the amount of $300 thousand. Mutual-Aid is not budgeted at time of budget adoption due to unpredictability whether aid will be requested form the City of San Luis Obispo and statewide fire conditions. There are no other significant expenditure variances that would impact fund balances projected as a result of expenditure trends through the end of 2017. The overall net impact to General Fund due to these revenue estimate changes net of recognition of Mutual Aid expenditures, is a negative $11 thousand dollars. The 2016-17 fiscal year end audited results showed that total General Fund balance decreased by $3.13 million to $26.5 million. Of this amount, $3.2 million were non-expendable funds and represent prepaid items; $128 thousand was restricted for Debt service, $9.4 million was committed for General government programs representing encumbrances and carryforward capital improvement program Local Revenue Measure projects; $11.0 million was assigned and includes $10.9 million for the 20% operating reserve (Contingency Fund), $41 thousand was designated for Development Services, and $100 thousand was designated for City Attorney use. Finally, $2.7 million was classified as unassigned at 2016-17 fiscal year end; however, the fund balance available for appropriation at year end $5.9 million due to insurance premium payments for the 2017-18 fiscal year prepaid in 2016-17 and reflected as an asset in the financial statements. Based on the analysis of revenues and expenditures since the year-end, staff identified changes in revenue forecasts and recommends that the revenue budget should be amended as identified in the table A below. It is also recommended that the Mutual Aid revenue and expenditure budget should be amended as identified in the table A below. The total impact of these changes is a negative $11 thousand. The following additional impacts to fund balance were identified through the Mid-Year review: 1) it was identified that $382 thousand of development services designation fund balance was not appropriately identified as assigned fund balance which negatively impacts the 2017-18 fiscal year end unassigned fund balance forecast 2) $185 thousand was appropriated by Council for Human Resources and Finance remodel to reconfigure work spaces and to remodel Finance front counter addressing disability access to current legal standards. Based on these impacts, update to the beginning fund balance for 2017-18 fiscal year, update to revenues and expenditures, the forecasted unassigned fund balance at current fiscal year end is projected at $5.5 million. Unassigned fund balance, per Council policy, is available for allocations toward one-time expenditures. This is approximately $300,000 lower than was estimated when the Comprehensive Annual Financial Report was presented in January 2018. It is recommended that Council approve allocation of $1.3 million for Capital Improvement Public Safety project detailed on page A-11 of the report. The remaining $4.2 million fund balance is recommended to be set-aside in a designation for allocation to an Internal Revenue Service Section 115 Trust specifically set-aside for pensions payments or reserves only. This action is in line with Council direction from Dec 12, 2017 for Fiscal Health Response Plan Budget Foundation. Mid-Year Budget Adjustments: Based on citywide review of revenues and expenditures, the following budget adjustments that impact fund balance and require Council approval are proposed: A-2 Table A 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 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. A-3 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 2016-17 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 2017-18 budget: 1) Revenue: General Fund and Local Revenue Measure Fund revenues received through November 2017 were compared to receipts from 12 months ago and a forecast of future revenues for the rest of 2017-18 was developed to determine the annual revenues to be derived from each revenue source. 2017-18 revenues are forecasted to increase by a total of $1.2 million from the original budget amount. This projected change is due to unbudgeted Mutual Aid Reimbursement of $1.5 million partly offset by a decline in Sales Tax in the total amount of $607 thousand, of which $162 thousand is attributed to Local Revenue Measure sales tax decline. This decline is offset by an increase in; property tax of $195 thousand, property tax in lieu of VLF of $44 thousand, and an increase of franchise fees revenue projection of $56 thousand. 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: Mutual Aid Reimbursement expense of $1.2 million is included as an adjustment to budget. The budget continues the assumption that there will be savings in expenditures equal to approximately $1.3 million already included in the year end fund-balance analysis. A-4 3) 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. The Development Services Designation had a beginning balance of $382 thousand. In 2016-17 an additional $41 thousand of over-realized revenue was identified and designated for Development Services. In November 2017 $54 thousand was approved to be reallocated from the designation to Building & Safety to back fill a Building Inspector that went out on medical leave. Development review fees paid at the time of an application represent a prepayment for work in conjunction with the development review process. Not all of these fees should be allocated for expenditures in the period they are received because some of the work can only occur when the project is under construction, which may be many months or years after an application is processed and payment is received. Table B Development Services Designation  ($ in thousands)  2017‐18    Beginning Balance 2016 ‐ 17 Year End  $         382     Year End Manager Allocation                 41      Building Inspector Backfill Approved Nov '17               (54)   Year End Balance  $         369    A-5 FINANCIAL CONDITION SUMMARY 2016-17 General Fund Balance Based on the 2016-17 financial results reported in the Comprehensive Annual Financial Report, the 2016-17 unassigned fund balance above the 20% policy level is $2.7 million. Another $3.2 million represents prepaid insurance expenses for fiscal year 2017-18. The two amounts combined were available for appropriation toward one- time uses at the end of fiscal year 2016-17. Based on trend analysis represented in this report, the General Fund balance available for appropriation including Local Revenue Measure sub-fund ( currently in a negative position) is $5.5 million. This amount is a result of 2016-17 fiscal-year expenditure savings negated by the mid-year downward revenue assumptions for sales tax, correction to CDD designation, remodel, and increase in 20% reserve. Restricted,  $128  Committed,  $9,428  Assigned,  $11,043  Unassigned,  $2,723  2016 ‐ 17 Fiscal Year End Fund Balance ($ in thousands) Restricted Committed Assigned Unassigned A-6 2016-17 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 Local Revenue Measure Funds. 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 2016-17 original expenditure budget for Local Revenue Measure was approximately $7.4 million. By the end of 2016-17, revenues totaled $7.4 million, expenditures totaled $6.2 million, including capital improvement projects of $4.1 million, leaving the Local Revenue Measure fund with an approximate unallocated fund balance of negative $239 thousand, including already approved capital improvement projects. This means that as of the 2016 -17 fiscal year end other General Fund sources and fund balance partially funded some of the activities originally approved to be funded with Local Revenue Measure dollars. Unless the Local Revenue Measure sub-fund either realizes more revenue than budgeted or savings in expenditures, the General Fund will continue to fund the negative difference. Due to two consecutive years (2016-17 and current fiscal year) where original revenue budget was lowered at mid- year for Local Revenue Measure sales tax, which has not been fully offset by savings in completed projects that were returned to the sub-fund balance, the sub-fund is projected to end the year with a negative net position of $401 thousand. Unless funding is adjusted to projects approved to be funded by Local Revenue Measure dollars, the projections and recommendations assume that General Fund dollars will fund the difference. The information will be presented to REOC at the next meeting in the February of 2018. The following demonstrates the distribution of the Local Revenue Measure expenditures by program for fiscal year. A-7 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 2016-17, and original budgeted amounts for 2017-18 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 2017-18 Supplement to the 2017-19 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 $445 thousand compared to the original budget. This is primarily due to lower than expected sales in general consumer goods due to the closure of Sears and increased online shopping. This decline is partly offset by an increase in property tax of $195 thousand, increase of property tax in lieu of VLF of $44 thousand, and an increase in franchise fees of $56 thousand. 2. Local Sales Tax. Using the HdL forecast for Local Sales Tax revenue (Measure Y/G), mid-year revisions reflected a decrease of approximately $162 thousand to anticipated receipts of Local Sales Tax revenue compared to original budget. 3. Property Tax. Based on County updated valuations, the General Fund’s Property Tax revenues were adjusted to reflect an increase of $239 thousand. 4. Transient Occupancy Tax. Revenue is in line with original budget overall. December saw an above average occupancy rate for the city compared to prior years due to the Thomas Fire in Santa Barbara and Ventura Counties. This increase will be fully offset by the decline to below average historical occupancy rates for the month of January due to the closure of Highway 101 during the month. The prolonged closure of Highway 1 also is impacting tourism. 5. Development Review Fees. Based on the amounts received and staff’s estimate for the rest of the year, development fee revenue is forecast to be flat compared to original budget, meaning that revenues will be close to the amounts budgeted. Per Council adopted policy, 75% of this revenue in excess of budget may be allocated or designated by the City Manager for Development Review expenditures due to increased workload. 2017-18 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 2017-19 Financial Plan Supplement. Below is a description of items affecting General Fund. General Fund – The revised budget includes an increase in mutual aid expenditures of $1.2 million. This expenditure is fully offset by an increase in mutual aid reimbursement of $1.5 million. Local Revenue Measure Sub-Fund - The revised budget shows a $6.1 million increase in the Local Revenue Measure Sub-Fund expenditure budget operations. Of this amount:  $5.3 million pertains to Capital Improvement Plan project carry forward; and  $800 thousand 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). A-8 Other Funds Significant Changes 1. Law Enforcement Grant Fund – There was a correction to the original budget of an expenditure increase in $75 thousand that was incorrectly reported as zero in the original budget and $15 thousand increase in expenditure based on grant receipt information. There is an increase in revenue projection of $9 thousand based on grant receipt information. 2. Water Fund – Revenue is tracking at budget projections for the water fund in most areas. Projections for water development impact fees which were budgeted conservatively, are being increased by $400 thousand to reflect revenue received through December 2017. Development review fee projections are being decreased by $200 thousand to reflect new assumptions based on revenue received. The original budget assumed fees coming in based on the new fee structure, however, many projects had paid fees prior to July 2017 so this revenue is not being realized. Water sales revenue is tracking on budget except for reclaimed water. This revenue is also budgeted conservatively as usage is largely based on weather and revenue can fluctuate. Based on revenue received through December, the budget is being increased by $200 thousand. 3. Sewer Fund - Revenue is tracking at budget projections for the sewer fund with one exception. The budget for sewer development impact fees is being increased by $129 thousand to reflect revenue received as of December. These fees are budged conservatively as it is difficult to predict the amount of revenue that will be received. 4. Parking Fund – Due to rate increases that were approved by the City Council in July 2017, after adoption of the annual budget, the Parking Revenues projections are increasing by $891 thousand. Rate increases were not included in original budget. The rates for hourly, monthly, quarterly and annual parking, both in the parking structures and in all metered spaces, were increased. These changes went into effect on January 1, 2018 and only reflect six months of the fiscal year. The revenues will enable the Parking Services division to replace/upgrade existing parking equipment and implement new parking infrastructure including the Palm/Nipomo parking structure and other CIP projects. The revenues will be slightly offset with additional expenditure costs for credit card transaction fees. Future revenue projections will be included in the Parking Fund 5-Year Forecast as part of the 2018-19 Budget Supplement. 5. Transit Fund – Due to service demand increases as part of the Short-Range Transit Plan (SRTP) and the anticipation of new transit revenue as part of Senate Bill (SB) 1: The Road Repair and Accountability, staff is working on a draft amendment to the contract with First Transit. The increase enables our riders to continue receiving excellent service while recognizing a new revenue stream. Staff anticipates presenting the contract amendment to the City Council sometime in late spring, early summer. Capital Improvement Program Expenditures The Capital Improvement Program (CIP) budget reflects an increase of $43.6 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 Expenditure 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 2017-18, 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. A-9 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 2017-18 along with the original budget and revisions for 2017-18. 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 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. A portion of the unassigned fund balance of $5.5 million, is 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 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. 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 20, 2018 meeting. If you have any questions in the interim, or require additional information, please do not hesitate to contact the Finance Director, Xenia Bradford, at 805-781-7125. A-10 CAPITAL IMPROVEMENT PLAN - INFRASTRUCTURE & TRANSPORTATION Farmers Market Security Bollards - FY 2017-18 Project Description Community Priority New Project Major City Goal & Other Important Objectives Measure G Priority Purpose and Need There has been growing concern regarding farmers market security in the wake of incidents at public gatherings around the country and abroad that have resulted in serious injuries and deaths. In 2014 a motorist drove thru barricades at the Hawthorne Farmers Market in New Jersey striking and killing one pedestrian and injuring two others. Again in 2014 a motorist drove thru barricades at a music festival on Red River Street in Austin Texas striking and killing four pedestrians and injuring 21 others. In 2013 a motorist drove around barricades onto the Venice beach oceanfront walk striking and killing one pedestrian and injuring 11 others. In 2003 a motorist drove thru barricades at the Santa Monica Farmers Market striking and killing ten pedestrians and injuring 63 others. The Santa Monica Farmers Market incident was investigated by the National Transportation Safety Board (NTSB), which made findings rrier system might have arrested or ating or greatly reducing the number d several civil lawsuits totaling $21 million. As a result of the initial NTSB finding the City updated and upgraded our Farmer's Market traffic control to have better signage on all approaches as well as additional upgraded barricades on each street approach. Due to the recent increase in vehicle intrusions into crowded public events, staff is recommending that we upgrade protection for the approaches to the Farmer's Market event to improve barrier between attendees and vehicles. Staff is proposing to the City of Santa Monica by installing a combination of manual/removeable and automatic/retractable bollards across the two street entrances of the Mission Plaza and nine street entrances to the Farmers Market as shown in the figure to the right. Manual/removeable bollards have a lower installation cost than automatic/retractable bollards but require higher ongoing operational costs due to an additional vehicle to transport them, additional personnel to install and remove them, and longer setup times which will require earlier street closures and parking restrictions. Automatic/retractable bollards will be considered for the wider, higher volume approaches such as Chorro/Monterey and Higuera/Osos whereas the manual/removable bollards will be prioritized for other, narrower lower volume approaches such as Monterey/Broad and Garden/Higuera. The bollard type (manual or automatic) to be used at each location will be determined in consultation with the San Luis Obispo Police & Fire Departments as well as the Downtown Association. Staff also is recommending in placing high priority on implementaiton of this project due to the continued exposure of event participants and referring other, less critical projects until it is completed. CAPITAL IMPROVEMENT PLAN - INFRASTRUCTURE & TRANSPORTATION Augmentation & Reprioritization of ResourcesThis is an unanticipated new mid-budget cycle project therefore there is inadequate staff and resources to implement the project at this time. To address this resource shortfall staff is proposing several measures: 1. One-time augmentation of Transportation Temporary Staff Hours 2. Postponement of work of the Neighborhood Traffic Management (NTM) Program until June of 2019 3. On-going augmentation of Farmers Market Temporary Staff hours 4. Fleet Expansion of one Vehicle The augmentation of temporary Transportation Staff Hours and postponement of the Neighborhood Traffic Calming program will allow for project implementation to occur quickly and start construction for at least part of the work within the next 12 months. The augmentation of temporary Farmers Market Staff hours and addition of a truck to haul bollards will allow for ongoing operations and occur a little later in the implementation of the project. The primary program that will be affected by this new project is deferral of the Neighborhood Traffic Management (NTM) Capital Project (CIP) proposed as part of the 2017-19 Financial Plan. This work included focus in three neighborhoods; Chorro Street, High Street, & Buchon Street. Under this proposal work on the NTM CIP is to be postponed until June of 2019. Staff is recommending postponement of the NTM capital project as opposed to other Capital Projects primarily for 3 reasons; 1) The NTM CIP is currently underfunded and postponing work may allow for annual funding allocations to catch up with anticipated costs, 2) Unlike most other projects, the NTM CIP does not have external time constraints such as grant deadlines, contractually memorialized schedules, or are prerequisites for other projects, and 3) The NTM CIP has an unusually high ratio of staff time to implement physical improvements for the community, and thereby postponement of the NTM program would have one of the lowest impacts to project delivery and would free up staff time that is proposed to be augmented with temporary staff hours to implement the Farmers Market Bollard Project. Status This is a new project proposed to be added as part of the Mid-Year 2017-18 budget. Project Team Lead Department: Public Works, Transportation Planning & Engineering Operating Program Numbers & Titles: 50500 Transportation Planning & Engineering, 50330 Signals & Street Lighting, 50300 Streets Maintenance Assignment Program/Work Group Estimated Hours Project Manager Transportation Engineering 600 Contract Management Transportation Engineering 40 Construction Management CIP Engineering Construction 100 Farmers Market Setup Streets 40 Hours Monthly On-Going Operations & Maintenance Transportation Eng. & Signals 2 Hours Monthly On-Going Anticipated Facility Life Span: Service Life of Bollards are anticipated to 20-30 years. CAPITAL IMPROVEMENT PLAN - INFRASTRUCTURE & TRANSPORTATION NOTE: The total extent of public and private utility conflicts with bollard foundations is unknown at this time, there is potential for the time frame and cost to escalate significantly. After survey work is completed the project schedule and cost estimates will be updated. Section B FINANCIAL CONDITION SUMMARIES REVENUES BY MAJOR CATEGORY AND SOURCETBID Budget Summary 48 72 Actual Original Revised %2016-17 Budget Budget Variance Change GOVERNMENTAL FUNDSGeneral Fund 59,983,487 60,883,660 62,246,799 1,363,139 2%Local Revenue Measure Fund 7,376,456 7,607,000 7,445,096 (161,904) -2%Special Revenue Funds 3,135,057 3,054,355 3,073,010 18,655 1%Capital Project Funds 4,650,691 1,457,800 1,457,800 - 0%Total Governmental Funds 75,145,691 73,002,815 74,222,705 1,219,890 2% ENTERPRISE FUNDS & AGENCY FUNDSWater Fund 20,451,423 20,007,562 20,407,562 400,000 2%Sewer Fund 16,485,117 15,885,464 16,014,464 129,000 1%Whale Rock Reservoir Fund 1,411,000 1,655,450 1,655,450 - 0%Parking Fund 4,719,320 5,142,600 6,034,000 891,400 17%Transit Fund 4,850,124 3,666,677 3,666,677 - 0%Boysen Ranch Convervation Fund 3,467 2,000 2,000 - 0%Total Enterprise Funds 47,920,452 46,359,753 47,780,153 1,420,400 3% TOTAL $123,066,144 $119,362,568 122,002,858 2,640,290 2% B-1 REVENUES BY MAJOR CATEGORY AND SOURCETBID Budget Summary 48 72 Actual Original Revised %2016-17 Budget Budget Variance ChangeGENERAL FUND Tax & Franchise Revenues Sales & use taxGeneral 16,737,007 16,932,000 16,487,213 (444,787) -3%Public safety (Proposition 172)405,512 436,560 436,560 - 0%Property tax 10,756,477 10,950,000 11,145,228 195,228 2%Property tax in lieu of VLF 4,353,912 4,593,377 4,637,535 44,158 1%Transient occupancy tax 7,367,592 7,293,790 7,293,790 - 0%Utility users tax 5,539,405 5,568,000 5,568,000 - 0%Franchise fees 1,557,128 1,526,717 1,582,442 55,725 4%Business tax certificates 2,372,248 2,746,896 2,746,896 - 0%Real property transfer tax 332,314 380,878 380,878 - 0%Total Tax & Franchise Revenues 49,421,595 50,428,218 50,278,542 (149,676) 0% Fines & ForfeituresVehicle code fines 147,850 112,800 112,800 - 0%Other fines & forfeitures (8,316) 34,800 34,800 - 0%Total Fines & Forfeitures 139,534 147,600 147,600 - 0% Investment and Property RevenuesInvestment earnings (46,726) 113,082 113,082 - 0%Rents & concessions 162,269 151,716 151,716 - 0%Total Investment & Property 115,544 264,798 264,798 - 0% Subventions & GrantsMotor vehicle in-lieu 20,660 - - - 0%Homeowners & other in-lieu taxes 74,912 69,560 69,560 - 0%Other in-lieu taxes - 22,000 22,000 - 0%SB 90 reimbursements 3,579 - - - 0%Police training (POST)9,702 10,000 10,000 - 0%Mutual aid reimbursements 787,411 - 1,500,000 1,500,000 0%COPS Grant AB3229 100,000 100,000 100,000 - 0%Zone 9 reimbursements - 85,000 85,000 - 0%Other state & federal grants 18,596 99,000 99,000 - 0%Total Subventions & Grants 1,014,859 385,560 1,885,560 1,500,000 389% Service ChargesPolice ServicesAccident reports 2,956 3,350 3,350 - 0%Collision investigation 9,352 10,550 10,550 - 0%Alarm permits and false alarm fees 129,722 84,400 84,400 - 0%DUI cost recovery 33,845 21,100 21,100 - 0%Tow release fee 13,075 12,660 12,660 - 0%Tobacco permit fees 21,628 21,100 21,100 - 0%Administrative citations 145,104 121,325 121,325 - 0%Parking citations 64,971 84,400 84,400 - 0%Other police services 199,949 116,382 121,719 5,337 5%Total Police Services 620,603 475,267 480,604 5,337 1% B-2 REVENUES BY MAJOR CATEGORY AND SOURCETBID Budget Summary 48 72 Actual Original Revised %2016-17 Budget Budget Variance ChangeFire ServicesCal Poly fire services 276,125 291,312 291,312 - 0%Medical emergency recovery 176,716 182,515 182,515 - 0%Fire safety/haz mat permits 136,576 137,150 137,150 - 0%Multi-dwelling unit inspections 194,912 - - - 0%CUPA fees 99,559 102,335 102,335 - 0%Other fire services 25,615 8,440 8,440 - 0%Total Fire Services 909,503 721,752 721,752 - 0% Development ReviewPlanning & zoning fees 597,831 648,619 648,619 - 0%Building Permits 1,717,108 1,854,289 1,854,289 - 0%Construction plan check & inspection 854,871 800,000 800,000 - 0%Infrastructure plan check & inspections 799,796 1,400,000 1,400,000 - 0%Encroachment permits 148,618 244,745 244,745 - 0%Fire plan check & inspections 431,886 400,000 400,000 - 0%Credit Card Fees (124,932) (116,406) (116,406) - 0%Other Development Fees 960,362 872,631 872,631 - 0%Rental Inspection Fees 151,388 50,000 50,000 - 0%Total Development Review 5,536,927 6,153,878 6,153,878 - 0% Parks & RecreationAdult athletic fees 107,447 135,117 135,117 - 0%Youth athletic fees 6,250 37,201 37,201 - 0%Skate park fees - 2,208 2,208 - 0%Instruction fees 77,271 100,455 100,455 - 0%Special event fees 99,281 102,332 103,693 1,361 1%Rental & use fees 151,562 178,280 178,280 - 0%Children services 720,822 662,340 662,340 - 0%Teens & seniors 5,220 1,656 1,656 - 0%Aquatics 242,014 272,332 272,332 - 0%Golf 234,897 322,495 322,495 - 0%Other recreation revenues 12,880 6,623 6,623 - 0%Total Parks & Recreation 1,657,645 1,821,039 1,822,400 1,361 0% General GovernmentBusiness license 378,665 401,200 401,200 - 0%Sales of publications 2,127 2,638 2,638 - 0%Other service charges 13,583 20,611 20,611 - 0%Total General Government 394,376 424,449 424,449 - 0% Total Service Charges 9,119,053 9,596,384 9,603,082 6,698 0% Other RevenuesInsurance refunds 11,407 28,200 28,200 - 0%Other revenues 161,495 32,900 39,017 6,117 19%Total Other Revenues 172,902 61,100 67,217 6,117 10% Total General Fund 59,983,487 60,883,660 62,246,799 1,363,139 2% B-3 REVENUES BY MAJOR CATEGORY AND SOURCETBID Budget Summary 48 72 Actual Original Revised %2016-17 Budget Budget Variance ChangeLOCAL REVENUE MEASURE FUND Measure G 7,331,660 7,607,000 7,445,096 (161,904) -2%Investment & Property Revenues 44,796 - - - 0%Total Local Revenue Measure Fund 7,376,456 7,607,000 7,445,096 (161,904) -2% SPECIAL REVENUE FUNDS Downtown Business Improvement District FundService Charges 225,894 227,000 227,000 - 0%Other Revenues - - - - 0%Total Downtown BID Fund 225,894 227,000 227,000 - 0% Tourism Business Improvement District FundInvestment & Property Revenues 2,744 1,400 1,400 - 0%Service Charges 1,478,345 1,464,387 1,464,387 - 0%Other Revenue - - - - 0%Total Tourism BID Fund 1,481,089 1,465,787 1,465,787 - 0% Community Development Block Grant FundInvestment & Property Revenues - - - - 0%Subventions & Grants 187,100 232,623 232,623 - 0%Other Revenues - - - - 0%Total Community Development Block Grant Fund 187,100 232,623 232,623 - 0% Gas Tax FundSubventions & Grants 913,428 965,000 965,000 - 0%Total Gas Tax Fund 913,428 965,000 965,000 - 0% Transportation Development Act FundSubventions & Grants 40,501 45,000 45,000 - 0%Total Transportation Development Act Fund 40,501 45,000 45,000 - 0% Law Enforcement Grant FundInvestment & Property Revenues - - - - 0%Subventions & Grants 141,359 81,345 100,000 18,655 23%Service Charges 2,523 - - - 0%Total Law Enforcement Grant Fund 143,882 81,345 100,000 18,655 23% Public Art Contributions FundInvestment & Property Revenues 4,294 2,100 2,100 - 0%Other Revenues 138,869 35,500 35,500 - 0%Total Public Art Contributions Fund 143,162 37,600 37,600 - 0% Total Special Revenue Funds 3,135,057 3,054,355 3,073,010 18,655 1% B-4 REVENUES BY MAJOR CATEGORY AND SOURCETBID Budget Summary 48 72 Actual Original Revised %2016-17 Budget Budget Variance ChangeCAPITAL PROJECT FUNDS General Purpose CIPSubventions & GrantsState of CaliforniaTraffic safety grant - - - - 0%Safe routes to school grant - - - - 0%SLTPP/STP grant - - - - 0%STP/SHA - RRTC 125,567 - - - 0%Other state grants - - - - 0%Federal GovernmentHighway & bridge rehabilitation &replacement (HBRR)37,210 - - - 0%Taft Roundabout - - - - 0%Other federal grants 20,983 - - - 0%Service Charges - - - - 0%Zone 9 reimbursements 80,394 - - - 0%Other Revenue 29,509 1,020,000 1,020,000 - 0%Total General Purpose CIP 293,664 1,020,000 1,020,000 - 0% Parkland Development FundInvestment & Property Revenues 16,450 3,900 3,900 - 0%Park in-lieu fees 195,081 - - - 0%Dwelling unit charge 9,005 - - - 0%Other Revenues 301,800 - - - 0%Total Parkland Development Fund 522,336 3,900 3,900 - 0% Transportation Impact Fee FundInvestment & Property Revenues (7,641) 46,000 46,000 - 0%Subventions & Grants - - - - 0%Impact Fees 1,615,385 250,000 250,000 - 0%Other Revenues - - - - 0%Total Transportation Impact Fee Fund 1,607,744 296,000 296,000 - 0% Fleet Replacement FundInvestment & Property Revenues 10,898 10,000 10,000 - 0%Sale of surplus property 137,034 40,000 40,000 - 0%Green Vehicle Rebates 9,000 - - - 0%Total Fleet Replacement Fund 156,932 50,000 50,000 - 0% B-5 REVENUES BY MAJOR CATEGORY AND SOURCETBID Budget Summary 48 72 Actual Original Revised %2016-17 Budget Budget Variance ChangeCAPITAL PROJECT FUNDS Open Space Protection FundInvestment & Property Revenues 4,697 - - - 0%Subventions & Grants 63,352 - - - 0%Service Charges 7,419 - - - 0%Total Open Space Protection Fund 75,468 - - - 0% Airport Area Impact Fee FundInvestment & Property Revenues 9,577 5,000 5,000 - 0%Service Charges 24,437 - - - 0%Total Airport Area Impact Fee Fund 34,014 5,000 5,000 - 0% Affordable Housing FundInvestment & Property Revenues 5,246 14,000 14,000 - 0%Subventions & Grants - - - - 0%Service Charges 1,489,668 - - - 0%Total Affordable Housing Fund 1,494,914 14,000 14,000 - 0% Los Osos Valley Road Sub-Area Fee FundInvestment & Property Revenues 5,946 1,700 1,700 - 0%Service Charges 422,858 - - - 0%Total LOVR Sub-Area Fee Fund 428,804 1,700 1,700 - 0% Information Technology Replacement FundInvestment & Property Revenues 27,552 5,000 5,000 - 0%Subventions & Grants - 60,000 60,000 - 0%Total IT Replacement Fund 27,552 65,000 65,000 - 0% Major Facility Replacement FundInvestment & Property Revenues 6,537 1,300 1,300 - 0%Service Charges - - - - 0%Total Maror Facility Replacement Fund 6,537 1,300 1,300 - 0% Infrastructure Investment FundInvestment & Property Revenues 2,728 900 900 - 0%Total Infrastructure Investment Fund 2,728 900 900 - 0% Total Capital Project Funds 4,650,691 1,457,800 1,457,800 - 0% TOTAL-GOVERNMENTAL FUNDS 75,145,691 73,002,815 74,222,705 1,219,890 2% B-6 REVENUES BY MAJOR CATEGORY AND SOURCETBID Budget Summary 48 72 Actual Original Revised %2016-17 Budget Budget Variance ChangeENTERPRISE & AGENCY FUNDS Water FundInvestment & Property Revenues 67,445 50,000 50,000 - 0%Impact Fees 1,266,674 800,000 1,200,000 400,000 50%Service Charges 18,524,829 19,125,562 19,125,562 - 0%Other Revenues 592,476 32,000 32,000 - 0%Total Water Fund 20,451,423 20,007,562 20,407,562 400,000 2% Sewer FundInvestment & Property Revenues 65,417 50,000 50,000 - 0%Impact Fees 503,615 300,000 430,000 130,000 43%Service Charges 15,873,733 15,501,464 15,502,464 1,000 0%Other Revenues 42,351 34,000 32,000 (2,000) -6%Total Sewer Fund 16,485,117 15,885,464 16,014,464 129,000 1% Whale Rock CommissionInvestment & Property Revenues 13,849 1,000 1,000 - 0%Service Charges 1,396,409 1,648,450 1,648,450 - 0%Other Revenues 743 6,000 6,000 - 0%Total Whale Rock Commission Fund 1,411,000 1,655,450 1,655,450 - 0% Parking FundInvestment & Property Revenues 59,757 48,000 43,000 (5,000) -10%Fines & Forfeitures 530,644 587,300 655,000 67,700 12%Service Charges 3,636,900 4,004,300 4,833,000 828,700 21%Lease Revenue 486,256 502,900 502,900 - 0%Other Revenues 5,763 100 100 - 0%Total Parking Fund 4,719,320 5,142,600 6,034,000 891,400 17% Transit FundInvestment & Property Revenues 3,804 5,800 5,800 - 0%Subventions & Grants 4,180,386 2,901,120 2,901,120 - 0%Service Charges 666,116 751,757 751,757 - 0%Other Revenues (182) 8,000 8,000 - 0%Total Transit Fund 4,850,124 3,666,677 3,666,677 - 0% Boysen Ranch Conservation FundInvestment & Property Revenues 3,467 2,000 2,000 - 0%Total Boysen Ranch Fund 3,467 2,000 2,000 - 0% Total Enterprise & Agency Funds 47,920,452 46,359,753 47,780,153 1,420,400 3% TOTAL - ALL FUNDS 123,066,144 119,362,568 122,002,858 2,640,290 2% B-7 CHANGES IN FINANCIAL POSITION ALL FUNDS COMBINED Actual Original Revised 2016-17 Budget Budget RevenuesTax Revenues 56,753,255 58,035,218 57,723,638 (311,580) -1%Fines and Forfeitures 670,178 734,900 802,600 67,700 9%Investment and Property Revenues 504,853 512,898 507,898 (5,000) -1%From Other Governments 6,759,738 5,621,088 19,476,604 13,855,516 246%Service ChargesGovernmental Funds 14,728,538 11,573,271 11,579,969 6,698 0%Enterprise Funds 42,083,592 42,383,433 43,994,133 1,610,700 4%Trust and Agency Revenues - - - - 0%Other Revenues 1,576,147 501,760 254,877 (246,883) -49%Total Revenues 123,076,300 119,362,568 134,339,719 14,977,151 13% Expenditures Operating ProgramsCommunity Safety 28,182,941 29,535,213 32,496,354 2,961,141 10%Infrastructure & Transportation 27,164,304 30,176,525 29,498,607 (677,918) -2%Culture & Recreation 3,506,780 3,696,643 6,483,472 2,786,829 75%Environmental Health & Open Space 7,367,428 8,668,430 9,681,436 1,013,006 12%Community & Neighborhood Livability 9,955,543 9,357,953 6,903,105 (2,454,848) -26%Fiscal Health & Governance 19,899,227 22,279,840 24,238,198 1,958,358 9%Total Operating Programs 96,076,223 103,714,604 109,301,173 5,586,569 5%Reimbursed Expenditures (4,164,747) (4,264,633) (4,264,633) - 0%Capital Improvement Plan Projects 17,822,303 34,842,100 92,248,904 57,406,804 165%Debt Service 5,096,743 7,969,844 7,969,844 - 0%Total Expenditures 114,830,522 142,261,915 205,255,287 62,993,372 44% Other Sources (Uses)Adjustment to Working Capial - - - - 0%Operating Transfers In 11,756,033 11,739,102 11,924,950 185,848 2%Operating Transfers Out (11,658,548) (11,738,759) (11,924,607) (185,848) 2%Proceeds from Debt Financing 1,141,468 20,095,000 20,095,000 - 0%Projected MOA Adjustments - - - - 0%Other Sources (Uses)- - - - 0%Expenditure Savings - 1,268,462 1,268,462 - 0%Total Other Sources (Uses)1,238,953 21,363,805 21,363,805 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 9,484,732 (1,535,542) (49,551,764) (48,016,222) 3127% Fund Balance, Beginning of Year 229,894,744 68,334,118 239,379,476 171,045,358 250% Fund Balance, End of Year 239,379,476 66,798,576 189,827,712 Prior Year Restatement - 0%Reserved for Debt Service 2,125,253 2,119,722 2,125,252 5,530 0%Unreserved 237,254,223 64,678,854 187,702,460 123,023,606 190% Total Fund Balance 239,379,476 66,798,576 189,827,712 123,029,136 184% Variance % change 2017 - 18 B-8 CHANGES IN FINANCIAL POSITION ALL GOVERNMENTAL FUNDS COMBINED Actual Original Revised 2016-17 Budget Budget RevenuesTax Revenues 56,753,255 58,035,218 57,723,638 (311,580) -1%Fines and Forfeitures 139,534 147,600 147,600 - 0%Investment and Property Revenues 259,301 356,098 356,098 - 0%From Other Governments 2,579,351 2,719,968 16,514,738 13,794,770 507%Service Charges 14,728,538 11,573,271 11,579,969 6,698 0%Other Revenues 695,742 170,660 176,777 6,117 4%Total Revenues 75,155,721 73,002,815 86,498,820 13,496,005 18% Expenditures Operating ProgramsCommunity Safety 28,182,941 29,535,213 32,496,354 2,961,141 10%Infrastructure & Transportation 10,482,258 11,167,151 10,198,619 (968,532) -9%Culture & Recreation 3,506,780 3,689,143 6,475,972 2,786,829 76%Environmental Health & Open Space 874,057 1,018,313 1,847,292 828,979 81%Community & Neighborhood Livability 8,964,068 8,842,060 6,372,018 (2,470,042) -28%Fiscal Health & Governance 13,938,106 15,976,666 17,598,967 1,622,301 10%Total Operating Programs 65,948,210 70,228,546 74,989,222 4,760,676 7%Reimbursed Expenditures (4,164,747) (4,264,633) (4,264,633) - 0%Total Operating Expenditures 61,783,463 65,963,913 70,724,589 4,760,676 7%Capital Improvement Plan Projects 10,145,986 7,842,100 39,560,802 31,718,702 404%Debt Service 3,243,976 3,374,758 3,374,758 - 0%Total Expenditures 75,173,425 77,180,771 113,660,149 36,479,378 47% Other Sources (Uses)Operating Transfers In 11,756,033 11,739,102 11,924,950 185,848 2%Operating Transfers Out (10,606,985) (9,732,193) (9,918,041) (185,848) 2%Proceeds from Debt Financing 1,141,468 595,000 595,000 - 0%Projected MOA Adjustments - - - - 0%Expenditure Savings - 1,268,462 1,268,462 - 0%Total Other Sources (Uses)2,290,516 3,870,371 3,870,371 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 2,272,812 (307,585) (23,290,958) (22,983,373) 7472% Fund Balance, Beginning of Year 49,602,347 26,588,819 51,875,159 25,286,340 95%Prior Year Restatement - 0%Fund Balance, End of Year 51,875,159 26,281,234 28,584,201 2,302,967 9% Reserved for Debt Service 2,125,253 2,119,722 2,125,252 5,530 0%Unreserved 49,749,906 24,161,512 26,458,949 2,297,437 10% Total Fund Balance 51,875,159 26,281,234 28,584,201 2,302,967 9% Variance % change 2017 - 18 B-9 CHANGES IN FINANCIAL POSITION ALL ENTERPRISE AND AGENCY FUNDS COMBINED Actual Original Revised 2016-17 Budget Budget RevenuesFines and Forfeitures 530,644 587,300 655,000 67,700 12%Investment and Property Revenues 245,552 156,800 151,800 (5,000) -3%From Other Governments 4,180,386 2,901,120 2,961,866 60,746 2%Service Charges 42,083,592 42,383,433 43,994,133 1,610,700 4%Trust and Agency Revenues - - - - 0%Other Revenues 880,405 331,100 78,100 (253,000) -76%Total Revenues 47,920,579 46,359,753 47,840,899 1,481,146 3% Expenditures Operating ProgramsInfrastructure & Transportation 16,682,046 19,009,374 19,299,988 290,614 2%Environmental Health & Open Space 6,493,371 7,650,117 7,834,144 184,027 2%Community & Neighborhood Livability 991,475 515,893 531,087 15,194 3%Culture & Recreation - 7,500 7,500 - 0%Fiscal Health & Governance 5,961,121 6,303,174 6,639,232 336,058 5%Total Operating Programs 30,128,013 33,486,058 34,311,951 825,893 2%Capital Improvement Plan Projects 7,676,316 27,000,000 52,688,102 25,688,102 95%Debt Service 1,852,767 4,595,086 4,595,086 - 0%Total Expenditures 39,657,096 65,081,144 91,595,138 26,513,994 41% Other Sources (Uses)Adjustment to Working Capial - - - - 0% Operating Transfers In - - - - 0%Operating Transfers Out (1,051,563) (2,006,566) (2,006,566) - 0%Proceeds from Debt Financing - 19,500,000 19,500,000 - 0%Projected MOA Adjustments - - - - 0%Other Sources (Uses)- - - - 0%Total Other Sources (Uses)(1,051,563) 17,493,434 17,493,434 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 7,211,920 (1,227,957) (26,260,806) (25,032,849) 2039% Fund Balance, Beginning of Year 180,292,397 41,745,299 187,504,317 145,759,018 349% Fund Balance, End of Year 187,504,317 40,517,342 161,243,511 120,726,169 298% Variance % change 2017 - 18 B-10 CHANGES IN FINANCIAL POSITION GENERAL FUND Actual Original Revised 2016-17 Budget BudgetRevenuesTax Revenues 49,421,595 50,428,218 50,278,542 (149,676) 0%Fines and Forfeitures 139,534 147,600 147,600 - 0%Investment and Property Revenues 115,544 264,798 264,798 - 0%From Other Governments 939,948 316,000 1,816,000 1,500,000 475%Service Charges 9,119,053 9,596,384 9,603,082 6,698 0%Other Revenues 247,814 130,660 136,777 6,117 5%Total Revenues 59,983,487 60,883,660 62,246,799 1,363,139 2% Expenditures Operating ProgramsCommunity Safety 26,899,115 27,996,083 30,857,079 2,860,996 10%Infrastructure & Transportation 10,111,383 10,766,356 9,797,824 (968,532) -9%Culture & Recreation 3,422,531 3,605,623 6,392,452 2,786,829 77%Environmental Health & Open Space 759,941 878,628 1,707,607 828,979 94%Community & Neighborhood Livability 8,482,191 8,283,022 5,812,980 (2,470,042) -30%Fiscal Health & Governance 11,275,461 13,409,321 14,758,205 1,348,884 10%Total Program Expenditures 60,950,622 64,939,033 69,326,147 4,387,114 7%Reimbursed Expenditures (4,164,747) (4,264,633) (4,264,633) - 0%Total Expenditures 56,785,875 60,674,400 65,061,514 4,387,114 7% Other Sources (Uses)Operating Transfers In 2,109,723 3,398,300 3,398,300 - 0%Operating Transfers Out (9,614,658) (4,707,714) (4,893,562) (185,848) 4%Proceeds from Debt Financing - - - - 0%Other Sources - - - - 0%Expenditure Savings - 1,268,462 1,268,462 - 0%Total Other Sources (Uses)(7,504,935) (40,952) (226,800) (185,848) 454% Revenues and Other Sources Over (Under)Expenditures and Other Uses (4,307,323) 168,308 (3,041,515) (3,209,823) -1907%Transfer to Local Revenue Measure Fund UNDESIGNATEDFund Balance, Beginning of Year 24,895,170 14,431,480 20,587,847 6,156,367 43%Prior Year Restatement Fund Balance, End of Year sub-total 20,587,847 14,599,788 17,546,332 2,946,544 20%Fund Balance Components:Designated Reserves (6,729,302) (651,212) (651,212) 0%Policy Reserve Level @ 20%:(10,902,368) (10,708,080) (10,902,368) (194,288) 2%Amount Over (Under) Policy Reserve:2,956,177 3,891,708 5,992,752 2,101,044 54% Variance % change 2017 - 18 B-11 CHANGES IN FINANCIAL POSITION LOCAL REVENUE MEASURE SUB-FUND Actual Original Revised 2016-17 Budget Budget RevenuesTax Revenues 7,331,660 7,607,000 7,445,096 (161,904) -2%Investment and Property Revenues 44,796 - - - 0%Total Revenues 7,376,456 7,607,000 7,445,096 (161,904) -2% Expenditures Operating ProgramsCommunity Safety 1,204,966 1,539,130 1,539,130 - 0%Infrastructure & Transportation 370,875 400,795 400,795 - 0%Culture & Recreation 84,249 83,520 83,520 - 0%Environmental Health & Open Space 114,116 139,685 139,685 - 0%Community & Neighborhood Livability 352,617 366,628 366,628 - 0%Fiscal Health & Governance - - - - 0%Capital Improvement Plan Projects 4,080,548 4,946,700 11,087,892 6,141,192 124%Total Expenditures 6,207,371 7,476,458 13,617,650 6,141,192 82% Other Sources (Uses)Operating Transfers In - 1,658,400 1,658,400 - 0%Operating Transfers Out - (1,788,400) (1,788,400) - 0%Total Other Sources (Uses)- (130,000) (130,000) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 1,169,085 542 (6,302,554) (6,303,096) -1162933% Fund Balance, Beginning of Year 4,732,397 (249,049) 5,901,482 6,150,531 -2470% Fund Balance, End of Year sub-total*5,901,482 (248,507) (401,073) (152,566) 61%Fund Balance Components:Reserved (6,141,192) Unreserved (239,711) *20% Reserve fund balance is fully reported/calculated within General Fund Changes in Financial Position. Variance % change 2017 - 18 B-12 CHANGES IN FINANCIAL POSITION INSURANCE BENEFIT Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 6,391 - - - 0%Service Charges - - - - 0%Total Revenues 6,391 - - - 0% ExpendituresOperating ProgramsFiscal Health & Governance 1,067,109 1,000,000 1,000,000 - 0%Capital Improvement Plan Projects - - - - 0%Total Expenditures 1,067,109 1,000,000 1,000,000 - 0% Other Sources (Uses)Operating Transfers In 1,739,898 750,000 750,000 - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)1,739,898 750,000 750,000 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 679,180 (250,000) (250,000) - 0% Fund Balance, Beginning of Year 339,852 1,079,749 1,019,032 (60,717) -6% Fund Balance, End of Year 1,019,032 829,749 769,032 (60,717) -7% Variance % change 2017 - 18 B-13 CHANGES IN FINANCIAL POSITION DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues - - - - 0%Service Charges - 0%Service ChargesAssessments 225,894 227,000 227,000 - 0%Service ChargesOther Service Charges - - - - 0%Other Revenues - - - - 0%Total Revenues 225,894 227,000 227,000 - 0% ExpendituresOperating ProgramsFiscal Health & Governance 232,473 227,000 227,000 - 0%Capital Improvement Plan Projects - - - - 0%Total Expenditures 232,473 227,000 227,000 - 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses (6,579) - - - 0% Fund Balance, Beginning of Year 1,122 1,122 (5,457) (6,579) -586%Prior Year RestatementFund Balance, End of Year (5,457) 1,122 (5,457) (6,579) -586% Variance % change 2017 - 18 B-14 CHANGES IN FINANCIAL POSITION TOURISM BUSINESS IMPROVEMENT DISTRICT FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 2,744 1,400 1,400 - 0%Service Charges 1,478,345 1,464,387 1,464,387 - 0%Total Revenues 1,481,089 1,465,787 1,465,787 - 0% ExpendituresOperating ProgramsFiscal Health & Governance 1,363,063 1,340,345 1,613,762 273,417 20%Capital Improvement Plan Projects - - - 0%Total Expenditures 1,363,063 1,340,345 1,613,762 273,417 20% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out (28,868) (27,679) (27,679) - 0%Total Other Sources (Uses)(28,868) (27,679) (27,679) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 89,158 97,763 (175,654) (273,417) -280% Fund Balance, Beginning of Year 340,275 247,047 429,433 182,386 74%Prior Year RestatementFund Balance, End of Year 429,433 344,810 253,779 (91,031) -26% Variance % change 2017 - 18 B-15 CHANGES IN FINANCIAL POSITION COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Actual Original Revised 2016-17 Budget BudgetRevenuesFrom Other GovernmentsFrom Other GovernmentsCDBG Allocation 187,100 232,623 232,623 - 0%From Other GovernmentsOther Revenues - - - - 0%Total Revenues 187,100 232,623 232,623 - 0% ExpendituresOperating ProgramsCommunity & Neighborhood Livability 129,260 192,410 192,410 - 0%Fiscal Health & Governance - - - - 0%Total Operating Programs 129,260 192,410 192,410 - 0%Capital Improvement Plan Projects 101,548 105,000 341,351 236,351 225%Debt Service - - - - 0%Total Expenditures 230,808 297,410 533,761 236,351 79% Other Sources (Uses)Operating Transfers In 153,969 154,000 154,000 - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)153,969 154,000 154,000 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 110,261 89,213 (147,138) (236,351) -265% Fund Balance, Beginning of Year 16,325 16,326 126,586 110,260 675% Fund Balance, End of Year 126,586 105,539 (20,552) (126,091) -119% Variance % change 2017 - 18 B-16 CHANGES IN FINANCIAL POSITION GAS TAX FUND Actual Original Revised 2016-17 Budget BudgetRevenuesFrom Other GovernmentsFrom Other GovernmentsGasoline Tax 913,428 965,000 965,000 - 0%Total Revenues 913,428 965,000 965,000 - 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out (913,428) (965,000) (965,000) - 0%Total Other Sources (Uses)(913,428) (965,000) (965,000) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses - - - - 0% Fund Balance, Beginning of Year - - - - 0% Fund Balance, End of Year - - - - 0% 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 2017 - 18 B-17 CHANGES IN FINANCIAL POSITION TRANSPORTATION DEVELOPMENT ACT (TDA) FUND Actual Original Revised 2016-17 Budget BudgetRevenuesFrom Other Governments 40,501 45,000 45,000 - 0%Total Revenues 40,501 45,000 45,000 - 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out (40,501) (45,000) (45,000) - 0%Total Other Sources (Uses)(40,501) (45,000) (45,000) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses - - - - 0% Fund Balance, Beginning of Year - - - - 0% Fund Balance, End of Year - - - - 0% Variance % change 2017 - 18 B-18 CHANGES IN FINANCIAL POSITION LAW ENFORCEMENT GRANTS FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues - - - - 0%From Other Governments 141,359 81,345 100,000 18,655 23%Service Charges 2,523 - - - 0%Total Revenues 143,882 81,345 100,000 18,655 23% ExpendituresOperating ProgramsCommunity Safety 78,860 - 100,145 100,145 0%Capital Improvement Plan Projects 58,258 - 69,607 69,607 0%Total Expenditures 137,119 - 169,752 169,752 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out (9,470) - - - 0%Total Other Sources (Uses)(9,470) - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses (2,706) 81,345 (69,752) (151,097) -186% Fund Balance, Beginning of Year 23,492 24,110 20,786 (3,324) -14% Fund Balance, End of Year 20,786 105,455 (48,966) (154,421) -146% Variance % change 2017 - 18 B-19 CHANGES IN FINANCIAL POSITION PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 4,294 2,100 2,100 - 0%Service ChargesService ChargesIn-lieu fees 138,869 35,500 35,500 - 0%Other Revenues - - - - 0%Total Revenues 143,162 37,600 37,600 - 0% ExpendituresOperating ProgramsCulture & Recreation - - - - 0%Capital Improvement Plan Projects 98,093 124,700 340,703 216,003 173%Total Expenditures 98,093 124,700 340,703 216,003 173% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 45,069 (87,100) (303,103) (216,003) 248% Fund Balance, Beginning of Year 423,809 191,713 468,878 277,165 145% Fund Balance, End of Year 468,878 104,613 165,775 61,162 58% 2017 - 18 Variance % change B-20 CHANGES IN FINANCIAL POSITION GENERAL PURPOSE CIP Actual Original Revised 2016-17 Budget BudgetRevenuesFrom Other Governments 293,664 1,020,000 13,296,115 12,276,115 1204%Service Charges - - - - 0%Other Revenues - - - - 0%Total Revenues 293,664 1,020,000 13,296,115 12,276,115 1204% ExpendituresCapital Improvement Plan Projects 1,357,473 1,234,000 15,186,431 13,952,431 1131%Total Expenditures 1,357,473 1,234,000 15,186,431 13,952,431 1131% Other Sources (Uses)Operating Transfers In 439,900 263,700 449,548 185,848 70%Operating Transfers Out - - - - 0%Other Sources (Uses)- - - - 0%Sale of Surplus Property - - - - 0%Total Other Sources (Uses)439,900 263,700 449,548 185,848 70% Revenues and Other Sources Over (Under)Expenditures and Other Uses (623,910) 49,700 (1,440,768) (1,490,468) -2999% Fund Balance, Beginning of Year 2,161,346 209,435 1,537,437 1,328,002 634%Prior Year RestatementFund Balance, End of Year 1,537,437 259,135 96,669 (162,466) -63% 2017 - 18 Variance % change B-21 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 16,450 3,900 3,900 - 0%From Other Governments - - - - 0%Service ChargesService ChargesPark In-Lieu Fees 195,081 - - - 0%Service ChargesDwelling Unit Fees 9,005 - - - 0%Other Revenues 301,800 - - - 0%Total Revenues 522,336 3,900 3,900 - 0% ExpendituresCapital Improvement Plan Projects 4,142 85,000 333,556 248,556 292%Total Expenditures 4,142 85,000 333,556 248,556 292% Other Sources (Uses)Operating Transfers In 900,000 - - - 0%Operating Transfers Out - (160,000) (160,000) - 0%Total Other Sources (Uses)900,000 (160,000) (160,000) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 1,418,194 (241,100) (489,656) (248,556) 103% Fund Balance, Beginning of Year 841,811 1,492,114 2,260,005 767,891 51% Fund Balance, End of Year 2,260,005 1,251,014 1,770,349 519,335 42% 2017 - 18 Variance % change B-22 CHANGES IN FINANCIAL POSITION INFRASTRUCTURE & TRANSPORTATION IMPACT FEE FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues (7,641) 46,000 46,000 - 0%From Other Governments - - - - 0%Service Charges 1,615,385 250,000 250,000 - 0%Other Revenues - - - - 0%Total Revenues 1,607,744 296,000 296,000 - 0% ExpendituresCapital Improvement Plan Projects 270,267 310,500 4,314,273 4,003,773 1289%Total Expenditures 270,267 310,500 4,314,273 4,003,773 1289% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - (250,000) (250,000) - 0%Proceeds from Debt Financing - - - - 0%Total Other Sources (Uses)- (250,000) (250,000) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 1,337,477 (264,500) (4,268,273) (4,003,773) 1514% Fund Balance, Beginning of Year 6,219,680 3,126,629 7,557,157 4,430,528 142%Prior Year RestatementFund Balance, End of Year 7,557,157 2,862,129 3,288,884 426,755 15% 2017 - 18 Variance % change B-23 CHANGES IN FINANCIAL POSITION FLEET REPLACEMENT FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 10,898 10,000 10,000 - 0%Service Charges - - - - 0%Other RevenuesOther RevenuesSale of Surplus Property 137,034 40,000 40,000 - 0%Other RevenuesGreen Vehicle Rebates 9,000 - - - 0%Total Revenues 156,932 50,000 50,000 - 0% ExpendituresCapital Improvement Plan Projects 1,594,712 625,000 1,194,078 569,078 91%Total Expenditures 1,594,712 625,000 1,194,078 569,078 91% Other Sources (Uses)Operating Transfers In 31,652 768,000 768,000 - 0%Operating Transfers Out (60) (768,000) (768,000) - 0%Proceeds from Debt Financing 1,141,468 595,000 595,000 - 0%Total Other Sources (Uses)1,173,060 595,000 595,000 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses (264,721) 20,000 (549,078) (569,078) -2845% Fund Balance, Beginning of Year 1,809,605 845,374 1,544,884 699,510 83% Fund Balance, End of Year 1,544,884 865,374 995,806 130,432 15% 2017 - 18 Variance % change B-24 CHANGES IN FINANCIAL POSITION OPEN SPACE PROTECTION FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 4,697 - - - 0%From Other Governments 63,352 - - - 0%Service Charges 7,419 - - - 0%Other Revenues - - - - 0%Total Revenues 75,468 - - - 0% ExpendituresCapital Improvement Plan Projects 36,074 - 2,934,807 2,934,807 0%Total Expenditures 36,074 - 2,934,807 2,934,807 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 39,394 - (2,934,807) (2,934,807) 0% Fund Balance, Beginning of Year 549,349 185,368 588,743 403,375 218% Fund Balance, End of Year 588,743 185,368 (2,346,064) (2,531,432) -1366% 2017 - 18 Variance % change B-25 CHANGES IN FINANCIAL POSITION AIRPORT AREA IMPACT FEE FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 9,577 5,000 5,000 - 0%Service Charges 24,437 - - - 0%Total Revenues 34,014 5,000 5,000 - 0% ExpendituresCapital Improvement Plan Projects 5,000 55,000 106,669 51,669 94%Total Expenditures 5,000 55,000 106,669 51,669 94% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 29,014 (50,000) (101,669) (51,669) 103% Fund Balance, Beginning of Year 1,079,956 1,024,287 1,108,970 84,683 8% Fund Balance, End of Year 1,108,970 974,287 1,007,301 33,014 3% 2017 - 18 Variance % change B-26 CHANGES IN FINANCIAL POSITION AFFORDABLE HOUSING FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 5,246 14,000 14,000 - 0%From Other Governments - - - - 0%Service Charges 1,489,668 - - - 0%Total Revenues 1,494,914 14,000 14,000 - 0% ExpendituresCapital Improvement Plan Projects 1,490,739 - 33,488 33,488 0%Total Expenditures 1,490,739 - 33,488 33,488 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 4,175 14,000 (19,488) (33,488) -239% Fund Balance, Beginning of Year 2,562,825 1,029,598 2,567,000 1,537,402 149% Fund Balance, End of Year 2,567,000 1,043,598 2,547,512 1,503,914 144% 2017 - 18 Variance % change B-27 CHANGES IN FINANCIAL POSITION LOS OSOS VALLEY ROAD SUB-AREA FEE FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 5,946 1,700 1,700 - 0%Service Charges 422,858 - - - 0%Total Revenues 428,804 1,700 1,700 - 0% ExpendituresCapital Improvement Plan Projects 463,826 - 34,518 34,518 0%Total Expenditures 463,826 - 34,518 34,518 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses (35,022) 1,700 (32,818) (34,518) -2030% Fund Balance, Beginning of Year 163,969 165,669 128,947 (36,722) -22% Fund Balance, End of Year 128,947 167,369 96,129 (71,240) -43% 2017 - 18 Variance % change B-28 CHANGES IN FINANCIAL POSITION INFORMATION TECHNOLOGY REPLACEMENT Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 27,552 5,000 5,000 - 0%From Other Governments - 60,000 60,000 - 0%Service Charges - - - - 0%Total Revenues 27,552 65,000 65,000 - 0% ExpendituresCapital Improvement Plan Projects 221,763 304,000 2,885,637 2,581,637 849%Total Expenditures 221,763 304,000 2,885,637 2,581,637 849% Other Sources (Uses)Operating Transfers In 2,621,000 689,745 689,745 - 0%Operating Transfers Out - (536,500) (536,500) - 0%Proceeds from Debt Financing - - - - 0%Total Other Sources (Uses)2,621,000 153,245 153,245 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 2,426,789 (85,755) (2,667,392) (2,581,637) 3010% Fund Balance, Beginning of Year 740,907 560,007 3,167,696 2,607,689 466% Fund Balance, End of Year 3,167,696 474,252 500,304 26,052 5% 2017 - 18 Variance % change B-29 CHANGES IN FINANCIAL POSITION MAJOR FACILITY REPLACEMENT Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 6,537 1,300 1,300 - 0%Service Charges - - - - 0%Total Revenues 6,537 1,300 1,300 - 0% ExpendituresCapital Improvement Plan Projects 363,544 52,200 447,792 395,592 758%Total Expenditures 363,544 52,200 447,792 395,592 758% Other Sources (Uses)Operating Transfers In 514,025 682,200 682,200 - 0%Operating Transfers Out - (483,900) (483,900) - 0%Total Other Sources (Uses)514,025 198,300 198,300 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 157,019 147,400 (248,192) (395,592) -268% Fund Balance, Beginning of Year 268,968 24,352 425,987 401,635 1649% Fund Balance, End of Year 425,987 171,752 177,794 6,042 4% 2017 - 18 Variance % change B-30 CHANGES IN FINANCIAL POSITION INFRASTRUCTURE INVESTMENT FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 2,728 900 900 - 0%Service Charges - - - - 0%Total Revenues 2,728 900 900 - 0% ExpendituresCapital Improvement Plan Projects - - 250,000 250,000 0%Total Expenditures - - 250,000 250,000 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Proceeds from Debt Financing - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 2,728 900 (249,100) (250,000) -27778% Fund Balance, Beginning of Year 311,765 63,765 314,493 250,728 393% Fund Balance, End of Year 314,493 64,665 65,393 728 1% 2017 - 18 Variance % change B-31 CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 3,544 - - - 0%Other Revenues 94 - - - 0%Total Revenues 3,639 - - - 0% ExpendituresDebt ServiceDebt ServiceCost of debt issuance - - - - 0%Debt Service2018 Dump Truck/Sweeper - 130,000 130,000 - 0%Debt Service2017 Fleet Replacement 240,067 240,068 240,068 - 0%Debt Service2012/2001 Refunded Revenue Bonds 381,975 385,075 385,075 - 0%Debt Service2004/1994 Refunding Revenue Bonds - - - - 0%Debt Service2005/1996 Refunding Revenue Bonds 466,789 469,589 469,589 - 0%Debt Service2006 Lease Revenue Bonds 459,914 458,940 458,940 - 0%Debt Service2009 Lease Revenue Bonds 826,610 826,779 826,779 - 0%Debt ServiceFire Engine/Truck Lease Purchase 129,202 125,764 125,764 - 0%Debt ServiceCapital Lease / Fire Truck 2014 116,702 116,702 116,702 - 0%Debt ServiceCapital Lease (I.T. Equipment)199,235 199,235 199,235 - 0%Debt Service2014 Lease Revenue Bond/ LOVR 422,181 422,606 422,606 - 0%Debt ServiceInsurance Retrospective Charges - - - - 0%Debt ServicePERS Side Fund Payment - - - - 0%Debt ServiceFleet Debt Service 2015-17 - - - - 0% Total Debt Service 3,242,676 3,374,758 3,374,758 - 0%Debt ServiceOther Operating Expenditures 1,300 - - Total Expenditures 3,243,976 3,374,758 3,374,758 - 0% Other Sources (Uses)Operating Transfers In 3,245,866 3,374,757 3,374,757 - 0%Operating Transfers Out - - - - 0%Proceeds from Debt Financing - - - - 0%Total Other Sources (Uses)3,245,866 3,374,757 3,374,757 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 5,529 (1) (1) - 0% Fund Balance, Beginning of Year 2,119,724 2,119,723 2,125,253 5,530 0% Fund Balance, End of Year 2,125,253 2,119,722 2,125,252 5,530 0% 2017 - 18 Variance % change B-32 CHANGES IN FINANCIAL POSITION WATER FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 67,445 50,000 50,000 - 0%From Other Governments - - - - 0%Service ChargesService ChargesWater SalesService ChargesWater Service Charges 17,407,694 17,623,312 17,874,312 251,000 1%Service ChargesSales to Other Agencies 793,749 866,250 866,250 - 0%Service ChargesDevelopment Impact Fees 1,266,674 800,000 1,200,000 400,000 50%Service ChargesConnection Charges and Meter Sales 51,426 61,000 61,000 - 0%Service ChargesLate Charges and Credit Card Fees 10,605 23,000 23,000 - 0%Service ChargesAccount Set-up Fee 103,171 156,000 156,000 - 0%Service ChargesAB 939 Reimbursement 145,819 145,000 145,000 - 0%Total Service Charges 19,779,138 19,674,562 20,325,562 651,000 3%Other Revenues 604,841 283,000 32,000 (251,000) -89%Total Revenues 20,451,423 20,007,562 20,407,562 400,000 2% ExpendituresOperating ProgramsInfrastructure & Transportation 9,770,508 11,217,372 11,218,281 909 0%Environmental Health & Open Space 2,362,906 2,791,977 2,870,296 78,319 3%Community & Neighborhood Livability 574,006 515,893 523,476 7,583 1%Fiscal Health & Governance 2,325,922 2,191,201 2,307,785 116,584 5%Total Operating Programs 15,033,342 16,716,443 16,919,838 203,395 1%Capital Improvement Plan Projects 3,224,351 3,277,500 9,508,023 6,230,523 190%Debt Service 812,097 2,194,005 2,194,005 - 0%Total Expenditures 19,069,790 22,187,948 28,621,866 6,433,918 29% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out (561,244) (967,599) (967,599) - 0%Proceeds from Debt Financing - - - - 0%Projected MOA Adjustments - - - - 0%Other Sources (Uses)- - - - 0%Expenditure Savings - - - - 0%Total Other Sources (Uses)(561,244) (967,599) (967,599) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 820,390 (3,147,985) (9,181,903) (6,033,918) 192% Working Capital, Beginning of Year 71,607,674 14,081,440 72,428,064 58,346,624 414% Working Capital, End of Year 72,428,064 10,933,455 63,246,161 52,312,706 478% % change Variance 2017 - 18 B-33 CHANGES IN FINANCIAL POSITION SEWER FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 102,370 50,000 50,000 - 0%Service ChargesService ChargesCustomer SalesService ChargesSewer Service Charges 14,162,377 14,301,464 14,302,464 1,000 0%Service ChargesSales to Cal Poly 1,063,433 875,000 875,000 - 0%Service ChargesDevelopment Impact Fees 653,050 300,000 430,000 130,000 43%Service ChargesAccount Set-Up Fees 103,445 156,000 156,000 - 0%Service ChargesLate Charges and credit card fees 10,760 23,000 23,000 - 0%Service ChargesIndustrial User Charges 88,331 85,000 85,000 - 0%Service ChargesConnection Charges and Meter Sales 52,579 61,000 61,000 - 0%Total Service Charges 16,133,975 15,801,464 15,932,464 131,000 1%Other Revenues 248,772 34,000 32,000 (2,000) -6%Total Revenues 16,485,117 15,885,464 16,014,464 129,000 1% Expenditures Operating ProgramsInfrastructure & Transportation 938,746 1,126,926 1,126,926 - 0%Environmental Health & Open Space 4,130,465 4,858,140 4,963,848 105,708 2%Community & Neighborhood Livability 417,469 - 7,610 7,610 0%Fiscal Health & Governance 2,539,091 3,027,860 3,247,334 219,474 7%Total Operating Programs 8,025,771 9,012,926 9,345,719 332,793 4%Capital Improvement Plan Projects 3,103,439 22,042,500 38,771,398 16,728,898 76%Debt Service 554,054 1,433,709 1,433,709 - 0%Total Expenditures 11,683,263 32,489,135 49,550,826 17,061,691 53% Other Sources (Uses)Cashflow adjustment for working capital - - - - 0%Operating Transfers In - - - - 0%Operating Transfers Out (490,319) (817,715) (817,715) - 0%Proceeds from Debt Financing - 19,500,000 19,500,000 - 0%Projected MOA Adjustments - - - - 0%Other Sources (Uses)- - - - 0%Total Other Sources (Uses)(490,319) 18,682,285 18,682,285 - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 4,311,534 2,078,614 (14,854,077) (16,932,691) -815% Working Capital, Beginning of Year 75,973,495 14,671,331 80,285,029 65,613,698 447% Working Capital, End of Year 80,285,029 16,749,945 65,430,952 48,681,007 291% Variance % change 2017 - 18 B-34 CHANGES IN FINANCIAL POSITION WHALE ROCK COMMISSION Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 8,581 1,000 1,000 - 0%Service Charges - 0%Service ChargesMember Agency Contributions O & M 735,828 808,845 808,845 - 0%Service ChargesMember Agency Contributions CIP 404,378 502,105 502,105 - 0%Service ChargesWater Distribution Charges 256,056 337,500 337,500 - 0%Service ChargesOther Service Charges - - - - 0%Total Service Charges & Interest 1,404,844 1,649,450 1,649,450 - 0%Other Revenues 6,157 6,000 6,000 - 0%Total Revenues 1,411,000 1,655,450 1,655,450 - 0% ExpendituresOperating ProgramsInfrastructure & Transportation 857,965 1,026,637 1,033,617 6,980 1%Fiscal Health & Governance 122,510 141,937 141,937 - 0%Total Operating Programs 980,475 1,168,574 1,175,554 6,980 1%Capital Improvement Plan Projects 55,205 520,000 990,108 470,108 90% Total ExpendituresTotal Expenditures 1,035,679 1,688,574 2,165,662 477,088 28% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - (2,210) (2,210) - 0%Other Sources (Uses)- - - - 0%Adjust for working capital - - - - 0%Total Other Sources (Uses)- (2,210) (2,210) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 375,321 (35,334) (512,422) (477,088) 1350% Fund Balance, Beginning of Year 48,057 1,330,935 423,378 (907,557) -68% Fund Balance, End of Year 423,378 1,295,601 (89,043) (1,384,644) -107% Variance % change 2017 - 18 B-35 CHANGES IN FINANCIAL POSITION PARKING FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 59,884 48,000 43,000 (5,000) -10%Fines and Forfeitures 530,644 587,300 655,000 67,700 12%Service ChargesService ChargesParking Meter CollectionsService ChargesLots 142,057 140,400 166,000 25,600 18%Service ChargesStreets 1,621,061 1,648,100 1,942,000 293,900 18%Service ChargesParking Structure Collections 1,336,165 1,489,500 1,843,000 353,500 24%Service ChargesLong-Term Parking Revenues 810,487 795,000 996,000 201,000 25%Service ChargesLease Revenues 486,256 502,900 502,900 - 0%Service ChargesParking In-Lieu Fees (184,721) 20,400 20,000 (400) -2%Service ChargesOther Service Charges (95,558) (89,100) (134,000) (44,900) 50%Total Service Charges 4,115,748 4,507,200 5,335,900 828,700 18%Other Revenues 13,170 100 100 - 0%Total Revenues 4,719,447 5,142,600 6,034,000 891,400 17% ExpendituresOperating ProgramsInfrastructure & Transportation 1,986,426 2,215,088 2,491,340 276,252 12%Fiscal Health & Governance 684,603 622,189 622,189 - 0%Total Operating Programs 2,671,029 2,837,277 3,113,529 276,252 10%Capital Improvement Plan Projects 633,849 825,000 2,720,138 1,895,138 230%Debt Service 486,616 967,372 967,372 - 0%Total Expenditures 3,791,493 4,629,649 6,801,040 2,171,391 47% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - (157,644) (157,644) - 0%Proceeds from Debt Financing - - - - 0%Potential MOA Adjustments - - - - 0%Other Sources (Uses)- - - - 0%Expenditure Savings - - - - 0%Cashflow adjustment for working capital - - - - 0%PERS 1% Contribution - - - - 0%GST Loan per Council Approval - - - - 0%Total Other Sources (Uses)- (157,644) (157,644) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 927,953 355,307 (924,684) (1,279,991) -360% Working Capital, Beginning of Year 24,011,240 9,958,053 24,939,193 14,981,140 150% Working Capital, End of Year 24,939,193 10,313,360 24,014,510 13,701,150 133% Variance % change 2017 - 18 B-36 CHANGES IN FINANCIAL POSITION TRANSIT FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 3,804 5,800 5,800 - 0%From Other GovernmentsFrom Other GovernmentsTDA Revenues (LTF)1,299,676 1,160,677 1,160,677 - 0%From Other GovernmentsTDA Revenues (STA)127,912 143,846 143,846 - 0%From Other GovernmentsOther Grants 184,334 196,957 257,703 60,746 31%From Other GovernmentsFTA Grants 2,568,464 1,399,640 1,399,640 - 0%Service Charges 658,468 751,757 751,757 - 0%Other Revenues 7,466 8,000 8,000 - 0%Total Revenues 4,850,124 3,666,677 3,727,423 60,746 2% ExpendituresOperating ProgramsInfrastructure & Transportation 3,128,402 3,423,351 3,429,823 6,472 0%Fiscal Health & Governance 288,995 319,987 319,987 - 0%Total Operating Programs 3,417,397 3,743,338 3,749,810 6,472 0%Capital Improvement Plan Projects 659,474 335,000 698,435 363,435 108%Total Expenditures 4,076,870 4,078,338 4,448,245 369,907 9% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - (61,398) (61,398) - 0%Projected MOA Adjustments - - - - 0%Other Sources - - - - 0%Expenditure Savings - - - - 0%Cashflow adjustment for working capital - - - - 0%Total Other Sources (Uses)- (61,398) (61,398) - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 773,254 (473,059) (782,220) (309,161) 65% Working Capital, Beginning of Year 8,571,814 1,619,334 9,345,068 7,725,734 477%Prior Year RestatementWorking Capital, End of Year 9,345,068 1,146,275 8,562,847 7,416,572 647% Variance % change 2017 - 18 B-37 CHANGES IN FINANCIAL POSITION BOYSEN RANCH CONSERVATION FUND Actual Original Revised 2016-17 Budget BudgetRevenuesInvestment and Property Revenues 3,467 2,000 2,000 - 0%Service Charges - - - - 0%Total Revenues 3,467 2,000 2,000 - 0% ExpendituresCulture & Recreation - 7,500 7,500 - 0%Total Expenditures - 7,500 7,500 - 0% Other Sources (Uses)Operating Transfers In - - - - 0%Operating Transfers Out - - - - 0%Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under)Expenditures and Other Uses 3,467 (5,500) (5,500) - 0% Fund Balance, Beginning of Year 80,117 84,206 83,584 (622) -1% Fund Balance, End of Year 83,584 78,706 78,084 (622) -1% Variance % change 2017 - 18 B-38 Item Amount Pending Approval Total GENERAL FUNDAdministrative Adjustments 12,815 12,815 - 12,815 LAW ENFORCEMENT GRANT FUNDAdministrative Adjustments 10,145 10,145 - 10,145 GENERAL PURPOSE CIP FUNDCouncil Approved Adjustment 185,848 185,848 - 185,848 GENERAL PURPOSE CIP GRANT FUNDAdministrative Adjustments (515,460) 2016-17 CIP Carryforward 10,751,621 10,236,161 - 10,236,161 TRANSIT FUNDCouncil Approved Adjustment 60,746 60,746 - 60,746 SUMMARY OF REVENUE BUDGET ADJUSTMENTS B-39 Item Amount Pending Approval Total Administrative Adjustments 12,815 Council Approved Adjustments 185,848 2016-17 Encumbrance Carryforward 3,289,049 3,487,712 - 3,487,712 2016-17 Encumbrance Carryforward 799,533 2016-17 CIP Carryforward 5,341,660 6,141,192 - 6,141,192 2016-17 CIP Carryforward 236,351 236,351 - 236,351 Administrative Adjustments 10,145 2016-17 CIP Carryforward 69,607 79,752 - 79,752 PUBLIC ART PRIVATE SECTOR FUND2016-17 CIP Carryforward 216,003 216,003 - 216,003 TOURIM BUSINESS IMPROVEMENT DISTRICT FUNDCouncil Approved Adjustments 218,000 2016-17 Encumbrance Carryforward 55,418 273,418 - 273,418 GENERAL PURPOSE CIP FUNDCouncil Approved Adjustments 235,848 2016-17 Encumbrance Carryforward 850,502 2016-17 CIP Carryforward 1,352,849 2,439,199 - 2,439,199 GENERAL PURPOSE CIP GRANT FUNDAdministrative Adjustments (540,000) Council Approved Adjustments 24,540 2016-17 Encumbrance Carryforward 434,226 2016-17 CIP Carryforward 11,594,466 11,513,232 - 11,513,232 TRANSPORTATION IMPACT FEE FUNDAdministrative Adjustments 540,000 2016-17 Encumbrance Carryforward 587,823 2016-17 CIP Carryforward 2,875,950 4,003,773 - 4,003,773 FLEET REPLACEMENT FUND2016-17 Encumbrance Carryforward 1,055,265 2016-17 CIP Carryforward (486,187) 569,078 - 569,078 INFORMATION TECHNOLOGY REPLACEMENT FUND2016-17 Encumbrance Carryforward 33 2016-17 CIP Carryforward 2,581,604 2,581,637 - 2,581,637 MAJOR FACILITY REPLACEMENT FUND2016-17 Encumbrance Carryforward 202,134 2016-17 CIP Carryforward 193,458 395,592 - 395,592 PARKLAND DEVELOPMENT FUND2016-17 Encumbrance Carryforward 167,788 2016-17 CIP Carryforward 80,768 248,556 - 248,556 INFRASTRUCTURE INVESTMENT FUND2016-17 CIP Carryforward 250,000 250,000 - 250,000 LAW ENFORCEMENT GRANT FUND SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS GENERAL FUND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND LOCAL REVENUE MEASURE SUB-FUND B-40 Item Amount Pending Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS OPEN SPACE PROTECTION FUND2016-17 CIP Carryforward 2,934,807 2,934,807 - 2,934,807 AIRPORT AREA IMPACT FEE FUD2016-17 CIP Carryforward 51,669 51,669 - 51,669 LOS OSOS VALLEY ROAD SUB-AREA FEE FUND2016-17 CIP Carryforward 34,518 34,518 - 34,518 AFFORDABLE HOUSING FUND2016-17 CIP Carryforward 33,488 33,488 - 33,488 WATER FUNDCouncil Approved Adjustments 25,000 2016-17 Encumbrance Carryforward 1,298,017 2016-17 CIP Carryforward 5,110,902 6,433,919 - 6,433,919 PARKING FUND2016-17 Encumbrance Carryforward 381,450 2016-17 CIP Carryforward 1,789,939 2,171,390 - 2,171,390 SEWER FUNDCouncil Approved Adjustments 25,000 2016-17 Encumbrance Carryforward 8,207,589 2016-17 CIP Carryforward 8,829,100 17,061,689 - 17,061,689 TRANSIT FUNDCouncil Approved Adjustments 60,755 2016-17 Encumbrance Carryforward 41,519 2016-17 CIP Carryforward 267,633 369,907 - 369,907 WHALE ROCK COMMISSION FUND2016-17 Encumbrance Carryforward 197,752 2016-17 CIP Carryforward 279,335 477,088 - 477,088 B-41 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2016-17 Budget Budget AmendmentsGeneral FundOperating Transfers InLocal Revenue Measure Sub-Fund - (1,788,400) (1,788,400) - Insurance Benefit - - - - Downtown Business Improvement District Fund - - - - Tourism Business Improvement District Fund 28,868 27,679 27,679 - Community Development Block Grant (CDBG) Fund - - - - Gas Tax Fund 913,428 965,000 965,000 - Infrastructure & Transportation Development Act (TDA) Fund 40,501 45,000 45,000 - Law Enforcement Grants Fund 9,470 - - - Public Art (Private Sector Contributions) Fund - - - - General Purpose CIP - - - - Parkland Development Fund - 160,000 160,000 - Infrastructure & Transportation Impact Fee Fund - 250,000 250,000 - Fleet Replacement Fund - 768,000 768,000 - Open Space Protection Fund - - - - Airport Area Impact Fee Fund - - - - Affordable Housing Fund - - - - Los Osos Valley Road Sub-Area Fee Fund - - - - Information Technology Replacement - 536,500 536,500 - Major Facility Replacement - 483,900 483,900 - Infrastructure Investment Fund - - - - Debt Service Fund - - - - Water Fund 561,244 967,599 967,599 - Sewer Fund 490,319 817,715 817,715 - Whale Rock Commission - 2,210 2,210 - Parking Fund - 157,644 157,644 - Transit Fund - 61,398 61,398 - Boysen Ranch Conservation Fund - - - - General Agency Fund 65,893 - 65,893 65,893 Total Operating Transfers In 2,109,723 3,454,245 3,520,138 65,893 Operating Transfers OutLocal Revenue Measure Sub-Fund - (1,658,400) (1,658,400) - Insurance Benefit (1,739,898) (750,000) (750,000) - Downtown Business Improvement District Fund - - - - Tourism Business Improvement District Fund - - - - Community Development Block Grant (CDBG) Fund (153,969) (154,000) (154,000) - Gas Tax Fund - - - - Infrastructure & Transportation Development Act (TDA) Fund - - - - Law Enforcement Grants Fund - - - - Public Art (Private Sector Contributions) Fund - - - - General Purpose CIP (439,900) (263,700) (263,700) - Parkland Development Fund (900,000) - - - Infrastructure & Transportation Impact Fee Fund - - - - Fleet Replacement Fund (5,657) (768,000) (5,657) 762,343 Open Space Protection Fund - - - - Airport Area Impact Fee Fund - - - - Affordable Housing Fund - - - - Los Osos Valley Road Sub-Area Fee Fund - - - - Information Technology Replacement (2,621,000) (689,745) (689,745) - Major Facility Replacement (514,025) (682,200) (682,200) - Infrastructure Investment Fund - - - - Debt Service Fund (3,245,866) (3,374,757) (3,374,757) - 2017-18 B-42 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2016-17 Budget Budget Amendments 2017-18 Water Fund - - - - Sewer Fund - - - - Whale Rock Commission - - - - Parking Fund - - - - Transit Fund - - - - Boysen Ranch Conservation Fund - - - - Total Operating Transfers Out (9,620,316) (8,340,802) (7,578,459) 762,343 Net Operating Transfers (7,510,593) (4,886,557) (4,058,321) 828,236 Local Revenue Measure Sub-FundOperating Transfers InGeneral Fund - 1,658,400 1,658,400 - Total Transfers In - 1,658,400 1,658,400 - Operating Transfers OutGeneral Fund - 1,788,400 1,788,400 - Total Transfers Out - 1,788,400 1,788,400 - Net Operating Transfers - 3,446,800 3,446,800 - Insurance BenefitOperating Transfers InGeneral Fund 1,739,898 750,000 750,000 - Total Transfers In 1,739,898 750,000 750,000 - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers 1,739,898 750,000 750,000 - Downtown Business Improvement District FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - Tourism Business Improvement District FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund (28,868) (27,679) 27,679 55,358 Total Transfers Out (28,868) (27,679) 27,679 55,358 Net Operating Transfers (28,868) (27,679) 27,679 55,358 Community Development Block Grant (CDBG) Fund Operating Transfers InGeneral Fund 153,969 154,000 154,000 - Total Transfers In 153,969 154,000 154,000 - B-43 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2016-17 Budget Budget Amendments 2017-18 Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers 153,969 154,000 154,000 - Gas Tax FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund (913,428) (965,000) (965,000) - Total Transfers Out (913,428) (965,000) (965,000) - Net Operating Transfers (913,428) (965,000) (965,000) - Infrastructure & Transportation Development Act (TDA) FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund (40,501) (45,000) (45,000) - Total Transfers Out (40,501) (45,000) (45,000) - Net Operating Transfers (40,501) (45,000) (45,000) - Public Art (Private Sector Contributions) FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - General Purpose CIPOperating Transfers InGeneral Fund 439,900 263,700 263,700 - Total Transfers In 439,900 263,700 263,700 - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers 439,900 263,700 263,700 - Parkland Development FundOperating Transfers InGeneral Fund 900,000 - - - Total Transfers In 900,000 - - - Operating Transfers OutGeneral Fund - (160,000) (160,000) - B-44 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2016-17 Budget Budget Amendments 2017-18 Total Transfers Out - (160,000) (160,000) - Net Operating Transfers 900,000 (160,000) (160,000) - Infrastructure & Transportation Impact Fee FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - (250,000) (250,000) - Total Transfers Out - (250,000) (250,000) - Net Operating Transfers - (250,000) (250,000) - Fleet Replacement FundOperating Transfers InGeneral Agency Fund 25,995 - 25,995 25,995 General Fund 5,657 768,000 5,657 (762,343) Total Transfers In 31,652 768,000 31,652 (736,348) Operating Transfers OutGeneral Fund (60) (768,000) (768,000) - Total Transfers Out (60) (768,000) (768,000) - Net Operating Transfers 31,592 - (736,348) (736,348) Open Space Protection FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - Airport Area Impact Fee FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - Affordable Housing FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - B-45 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2016-17 Budget Budget Amendments 2017-18 Los Osos Valley Road Sub-Area Fee FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - Information Technology ReplacementOperating Transfers InGeneral Fund 2,621,000 689,745 689,745 - Total Transfers In 2,621,000 689,745 689,745 - Operating Transfers OutGeneral Fund - (536,500) (536,500) - Total Transfers Out - (536,500) (536,500) - Net Operating Transfers 2,621,000 153,245 153,245 - Major Facility ReplacementOperating Transfers InGeneral Fund 514,025 682,200 682,200 - Total Transfers In 514,025 682,200 682,200 - Operating Transfers OutGeneral Fund - (483,900) (483,900) - Total Transfers Out - (483,900) (483,900) - Net Operating Transfers 514,025 198,300 198,300 - Infrastructure Investment FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - Debt Service FundOperating Transfers InGeneral Fund 3,245,866 3,374,757 3,374,757 - Total Transfers In 3,245,866 3,374,757 3,374,757 - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers 3,245,866 3,374,757 3,374,757 - Water FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - B-46 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2016-17 Budget Budget Amendments 2017-18 Operating Transfers OutGeneral Fund (561,244) (967,599) (967,599) - Total Transfers Out (561,244) (967,599) (967,599) - Net Operating Transfers (561,244) (967,599) (967,599) - B-47 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2016-17 Budget Budget Amendments 2017-18 Sewer FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund (490,319) (817,715) (817,715) - Total Transfers Out (490,319) (817,715) (817,715) - Net Operating Transfers (490,319) (817,715) (817,715) - Whale Rock CommissionOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - (2,210) (2,210) - Total Transfers Out - (2,210) (2,210) - Net Operating Transfers - (2,210) (2,210) - Parking FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - (157,644) (157,644) - Total Transfers Out - (157,644) (157,644) - Net Operating Transfers - (157,644) (157,644) - Transit FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - (61,398) (61,398) - Total Transfers Out - (61,398) (61,398) - Net Operating Transfers - (61,398) (61,398) - Boysen Ranch Conservation FundOperating Transfers InGeneral Fund - - - - Total Transfers In - - - - Operating Transfers OutGeneral Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - - NET OPERATING TRANSFERS 7,611,890 4,886,557 4,205,567 (680,990) B-48 Section C STATUS OF GOALS AND OBJECTIVES 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 1 The fundamental purpose of the City’s Financial Plan is to link what the City wants to accomplish over the two-year period with the resources available to do so. The Financial Plan process used by the City Council accomplishes this through a public engagement process that helps the Council identify Major City Goals, establishing a timeframe and organizational responsibility for achieving them, and allocating the resources needed to do so. In order to identify the goals to drive the budget process, the City begins its Financial Plan process by asking its advisory bodies to submit goals, soliciting feedback from the public with a survey, and holding a community forum, in addition to other outreach efforts. This input helps the Council determine the major objectives it wants to accomplish over the next two years in addition to the ongoing services the City provides to the community. At the Goal-Setting Workshop in January 2017, Council established four Major City Goals and one Other Important Council Objective, listed below. The proposed work programs and funding to accomplish the Major City Goals and Other Important Objective are presented in this section. 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 30% Complete Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range Transit Plan. Major City Goals (MCG)• Housing• Multi-Modal Transportation• Climate Action• Fiscal Sustainability & ResponsibilityOther Important Objectives (OIO)• Downtown VitalityC-1 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 2 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, perhaps an 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 25% 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. The recruitment to fill that position is complete and our new Sustainability Manager will be starting in early March 2018. In July 2017, the City “Green Team” was established with representatives 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 C-2 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 3 return to Council on April 14, 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. 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 coronation 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. Staff has been coordinating and meeting with Downtown SLO on their outreach and technical efforts for a Business Improvement District (PBID). If formed, it would help SLO Downtown achieve some of its strategic growth and provides resources to enhance service levels in areas such as maintenance, safety, special event programing and other initiatives to ensure the ongoing economic and social viability of the Downtown. CONCLUSION The next review of the 2017-19 Major City Goals and Other Important Objectives will occur at the end of fiscal year 2017-18. 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 Housing: 2017-19 Action Plan Objective: 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.# Task Completion Date Revised Status 1 Update of City Zoning Regulations to comply with the Land Use Element. 6/2018 8/2018 The Zoning Regulations Update began in May 2017 and anticipated to be completed by August, 2018. 2 Affordable Housing Nexus Study 12/2018 Not started. The Affordable Housing Nexus Study will begin after the Capital Facilities Fee Program Nexus Study is completed in March 2018.3 HE 2.16: Evaluate and consider including a workforce level of affordability to increase housing options for those making between 121-160% of the Area Median Income. 6/2018 An Administrative Draft Workforce Housing Program is currently under review. 4 HE 4.6: Consider amending the City’s Inclusionary Housing Ordinance and Affordable Housing Incentives to require that affordable units in a development be of similar number of bedrooms, character and basic quality as the non-restricted units in locations that avoid segregation of such units. 12/2018 8/2018 This will be included in the Zoning Regulations Update. 5 HE 6.12, 6.13 & 6.27 & LUE 4.0.28: 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. 6/2019 8/2018 This will be included in the Zoning Regulations Update. 6 HE 6.15: Consider General Plan amendments to re-zone commercial, manufacturing or public facility zoned areas for higher density, infill or mixed use housing where land development patterns are suitable and impact to Low-Density Residential areas is minimal. 12/2018 A list of applicable properties is maintained and will be updated. 7 HE 6.28: Evaluate how lot patterns (i.e. size, shape, slope) in the City’s multi-family zones affect the City’s ability to meet housing production policies. If warranted, consider setting a minimum number of dwellings on each legal lot in the R-2, R-3 and R-4 zones, 8/2018 A list of applicable properties was inventoried, and will be evaluated further as part of the Zoning Regulations Update. C-4 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 5 Housing: 2017-19 Action Plan Objective: 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.# Task Completion Date Revised Status regardless of lot size, when other property development standards, such as parking, height limits and setbacks can be met. 6/2019 8 HE 6.30: Eliminate the one-acre minimum lot area for PD overlay zoning, and identify incentives to conventional subdivision design. 6/2018 8/2018 This will be included in the Zoning Regulations Update and the Subdivision Regulations Update. 9 HE 6.31: Consider scaling development impact fees for residential development based on size, number of bedrooms, and room counts. 6/2019 6/2018 The transportation component of the Capital Facilities Fee Program and the Water and Wastewater Capacity and Connection Fee Program will be applied to residential developments based on unit size.10 HE 9.12 & LUE 3.5.7.1: 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. Ongoing Ongoing work effort with opportunities to implement additional incentives in the Zoning Regulations Update. 11 Continue to prioritize streamlining and expediting projects that facilitate increased production of all housing types that are economically accessible to the area workforce, low, and very low income residents. Ongoing 12 Continue to implement Housing Element programs and housing production goals. Ongoing 13 Provide timely building permit review and inspections for new housing developments. Ongoing 14 Support employer/employee and employer/developer financing programs and partnerships to increase housing opportunities specifically targeted towards the local workforce. Ongoing 15 Continue the City’s participation with the Workforce Housing Ongoing C-5 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 6 Housing: 2017-19 Action Plan Objective: 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.# Task Completion Date Revised Status Coalition, San Luis Obispo County Housing Trust Fund to identify, evaluate, and implement strategies to increase the production of housing. 16 CAP TLU 8.1: Improve the City’s jobs-housing balance to reduce VMT from commuting. Ongoing 17 HE 2.17: Continue to consider increasing residential densities above state density bonus allowances for projects that provide housing for low, very low and extremely low-income households. Ongoing Affordable housing incentives are evaluated on a project by project basis. 18 HE 3.10: Continue to encourage the creation of dwellings in the Downtown Core (CD Zone) and the Downtown Planning Area by continuing the no net loss program. Ongoing 19 HE 5.5: Review new developments for compliance with City regulations and revise projects or establish conditions of approval as needed to implement housing variety and tenure policies. Ongoing 20 HE 6.14: Specific plans for any new expansion area identified shall include R-3 and R-4 zoned land to ensure sufficient land is designated at appropriate densities to accommodate the development of extremely low, very-low and low income dwellings. Ongoing 21 HE 6.18: Seek opportunities with other public agencies and public utilities to identify, surplus land for housing, to convert vacant or underutilized public, utility or institutional buildings to housing. Ongoing 22 CAP TLU 8.2: Support infill housing projects that implement General Plan policies, especially BMR housing close to job opportunities. Ongoing C-6 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 7 Multimodal Transportation: Objective: Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range Transit Plan. # Task Completion Date Revised Status 1 Begin Construction of Railroad Safety Trail – Taft to Pepper. 3/2019 Right of way acquisition underway, scheduled for Council Closed Session in March. Related construction documents and permits are under review by Union Pacific.2 Complete Railroad Safety Trail Extension – Pepper to Train Station. 3/2019 Design scheduled to begin 2018. 3 Begin Construction of Bob Jones Trail - Prefumo Creek to Oceanaire (grant funding dependent). 3/2019 Preliminary planning and design underway. Potential new routing may be identified. No funding to complete construction has yet been acquired and construction delay is anticipated.4 Construct 1st phase of the Broad Street Bike Blvd. 8/2018 Final Plan going to Council for potential approval on February 6, 2018. If approved, construction of 1st phase targeted for 3rdQuarter 2018.5 Implement Minor Bicycle Facility Improvements. Ongoing Green and Buffered bike lanes on LOVR/Madonna and spot improvements in multiple locations6 Broad Street Corridor Access Improvements. 6/2019 Community meeting held. Initial study completed in December. 7 Complete Pedestrian & Bikeway Maintenance. Ongoing Last pathway maintenance work occurred in Laguna Lake Park. Meadow Park Pathway is the next location for pathway maintenance work anticipated to start construction in spring 2020. 8 Complete Sidewalk Replacements & New Installations. Ongoing Sidewalk and tree replacements completed in November. Additional locations currently undergoing design and coordination with Tree Committee and adjacent property owners.9 Complete New Streetlight Installations. Ongoing Scheduled 1st installation for end of 2018 C-7 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 8 10 Construct Safe Routes to School: Foothill X-Ing Project. Ongoing Foothill/Ferrini crossing and Class I Path in design. Construction targeted for 3rd Quarter 2018--pending right-of-way agreement with LDS Church. 11 Begin Bicycle Transportation Plan update to Active Transportation Plan. 1/2018 RFP for consulting services is circulating. BAC bylaws to be updated in March to Active Transportation Committee.12 Develop Parklet Application Guide. 3/2018 12/2018 This will be consolidated into the Active Transportation Plan.13 Work with Senior Councils and Commissions to include senior citizen issues in the upcoming Active Transportation.Ongoing 14 Continue Deployment of Advance Pedestrian Signal Timing. Ongoing Continuing deployment. Additional locations to be identified in conjunction with most recent Vision Zero/Traffic Safety Report15 Implement revised routes and schedules for Short Range Transit Plan. 7/2017 6/2017 New routes implemented in July 2017. Additional service implemented in November to address overcrowding.16 Upgrade and replace the SLO Transit Automatic Vehicle Locators (AVL) system. 6/2018 12/2018 Grant funds have been secured and initial research of open source options has commenced. A pilot project is currently underway17 Work with SLOCOG, RTA and the County of San Luis Obispo to advance the relocation of the Downtown Transit Center. Ongoing Discussions continue with SLOCOG, RTA and others to determine project scope and potential relocation issues. Site options are being reconsidered18 Begin construction of Higuera Street Widening – Elks to Chumash Village. 9/2018 Construction targeted for Spring 2019. 19 Begin Construction of Prado Road Bridge Widening at SLO Creek. 4/2019 1/2020 Design and environmental review underway. Construction targeted for early 2020 depending on State funding delays.20 Complete Caltrans’ PAED (environmental) process for the Prado Road Interchange. 6/2019 Caltran’s Project Study Report circulating at Caltrans for review and approval. Anticipated approval March of 2018. Scope of PAED documents underway.C-8 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 9 21 Continue Traffic Safety & Operations Programs. Ongoing Meeting scheduled for February 6th, 2018 for 2016 Traffic Safety Report findings. Calendar year 2017 data being accumulated.22 Implement 2015 Traffic Safety Report Projects. 6/2019 Short term projects have been completed, Signal Monterey/Osos to be complete late winter. Long term such as Laurel Lane and California/Taft for 201923 Construct of California & Taft Roundabout. 6/2019 Design is 65% complete. Grant funding needed for construction.24 Complete Design of Tank Farm & Orcutt Roundabout. 6/2018 10/2018 Design contract routing for approval. Commencing in January 2018. Revised delivery date based upon discussions with developer.25 Complete Bridge Maintenance Projects. Ongoing Preventative bridge maintenance project work was rescoped and approved by Council to complete major maintenance work on El Capitan Pedestrian and Bike Bridge. This project is currently under design with an estimated start of construction in summer 2018 pending successful appropriation of construction funds. 26 Complete Street Reconstruction & Resurfacing. Ongoing Madonna and Los Osos Valley Road Rehabilitation Project construction work is nearly complete. Concrete Streets and Accessibility Improvements project on Dana Street and Neighborhood Roadway Sealing projects are anticipated to start construction in summer 2018.27 Continue to support multimodal infrastructure installation and upgrade thru new development. Ongoing 28 Continue implementation of the City’s Neighborhood Traffic Calming Program at reduced level from prior years. Ongoing Completed voting on Chorro NTM, Buchon NTM, future community meetings for later 201829 Continue Traffic Signs and Striping maintenance. Ongoing Late winter 2018 C-9 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 10 Climate Action: 2017-19 Action Objective: 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. # Task Completion Date Revised Status 1 Identify Resources a. Introduce Sustainability Coordinator to the City. b. Creation of a City “Green Team” and establishment of roles and responsibilities. c. Support for the establishment of a “Community Climate Action Coalition”. 11/2017 Completed 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. The recruitment to fill that position is currently complete, with new staff starting in early March. In July 2017, the City “Green Team” was established with representatives 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.2 Net Zero Carbon City a. Assessment of the requirements to achieve a “net-zero carbon city” target. b. Identify opportunity sites to create “net zero carbon district(s)” c. Feasibility analysis and implementation of a Community Choice Energy Program 6/2018 Council provided direction to staff to pursue a local Community Choice Energy Program with regional partners in December 2017. 3 Updating the Climate Action Plan. 12/2018 4 Re-evaluation of the feasibility or relevance of some of the identified GHG emissions reduction implementation measures that are identified in the CAP, and identification of potential implementation funding sources. 3/2018 6/2018 The Climate Action Task Force will serve as the technical advisors to the City “Green Team” on this work effort. City staff has identified potential funding sources to implement the installation of Electric Vehicle charging stations in City Parking Structures and Public parking lots. 5 Updating the City’s GHG emissions inventory. 6/2018 Data collection for this effort began in November 2017 and the process is underway.C-10 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 11 Climate Action: 2017-19 Action Objective: 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. # Task Completion Date Revised Status 6 Biennial reporting on the effectiveness of individual climate action adaptation and GHG emission reduction strategies.5/2019 7 Ongoing accountability and monitoring of the effectiveness and progress for all CAP implementation strategies and measures.6/2019 8 Development of enhanced incentive programs. 6/2019 9 Performance of energy assessments/audits on all City-owned facilities. 3/2018 6/2018 10 Implementation of energy and cost saving measures and projects that were identified in the energy assessments/audits on all City-owned facilities. 7/2018 8/2018 Electric vehicle charging stations are in planning stage. 11 Monitoring and measuring of City-owned facility and infrastructure performance. 8/2018 12 Preparation of an Energy Baseline Report and Rate Analysis for City-owned facilities and infrastructure. 3/2019 13 Implement Plastic Straw Regulations. 10/2017 Ordinance adopted in October 2017 and implementation is underway using social media and other outreach with the business community to implement these actions.14 Implement Plastic Bottle Regulations. 4/2018 Ordinance adopted in October 2017 and implementation is underway using social media and other outreach with the business community to implement these actions. C-11 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 12 Fiscal Sustainability and Responsibility: 2017-19 Action Plan Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. # Task Completion Date Revised Status 1 Update the Economic Development Strategic Plan (EDSP) that considers and leverages regional strategies to address the planned closure of the Diablo Canyon Nuclear Power Plant. Summer 2018 The City is the final stages of filling the Economic Development Manager position due to staff turn-over and will be developing recommendations for the Economic Development Strategic Plan.2 Develop the relevant policies and action plans to allocate the $1.82 million in funding restricted for Economic Development anticipated with the Diablo Canyon Power Plant closure settlement agreement, if approved. Spring 2019 The Diablo Canyon Power Plant settlement agreement was rejected by California Public Utilities Commission following administrative judge proposed ruling to reject. The City is engaging a legislative strategy to address the ruling and the impacts of the Diablo Canyon Power Plant closure to the region.3 Complete an update of the City’s Development Impact Fee Program (AB 1600). Winter 2018 March 2018 In October 2017, the City Council held a study session to review the preliminary results of the Capital Facilities Fee Program (CFFP)Nexus Study and provided staff with direction to provide further feasibility analysis. In November 2017, the City Council adopted a Resolution of Intent to implement the updated Capital Facilities Fee Program. In January 2018, the City Council held a second study session to review the revisions to the preliminary results of the CFFP and directed staff to return in March 2018 with further program refinement to achieve affordable housing objectives.4 Increase revenues from property, sales, and Transient Occupancy Tax (TOT) by implementing strategies in the EDSP.Ongoing 5 Continue partnership with Hothouse to create and expand economic activities. Ongoing 6 Continue to implement Fiscal Health Contingency Plan measures that address short and long-term financial challenges. Ongoing Ongoing Fiscal Health Contingency Plan is in effect and all hiring and travel expenditures are monitored and require case by case approval to maximize expenditure savings. Staff has C-12 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 13 Fiscal Sustainability and Responsibility: 2017-19 Action Plan Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. # Task Completion Date Revised Status also completed the analysis of long-term and short-term structural budget deficit and has developed a strategy (Fiscal Health Response Plan) to close the budget gap of identified $8.9 million over a three fiscal years period starting with fiscal year 2018-19. 7 Engage employees in Fiscal Health Contingency measures such as categorizing programs and services, promoting cost savings through suggestion programs, and identifying budget balancing ideas. Engage the community in the City’s Fiscal Health through Speakers Bureaus, online resources, and holding community workshops and meetings with Council. Summer 2017 Fall 2018 Staff held an open workshop to inform the public about the fiscal conditions and unfunded liabilities and to receive feedback in October of 2017. Staff has also engaged various stakeholder groups such as the Chamber of Commerce, Downtown Association, and Rotary and made presentations and received feedback for recommendations to close the budget deficit. Staff has engaged employees citywide to develop recommendations. An online survey has been available to the public to make recommendations as well as internal survey for citywide staff. Staff will continue to engage the community through Fall 2018 leading to the General Election regarding revenue measures. 8 Develop a budget balancing plan for City Council actions consistent with the Fiscal Health Contingency Plan based on community input that identifies actions and operational changes needed to achieve fiscal responsibility. Spring 2018 Staff has developed a budget balancing plan to close the budget gap over a period of three fiscal years starting with 2018-19 Supplemental Budget and through 2019-21 Financial Plan. In November of 2017, the Council reviewed this Fiscal Health Response Plan and provided policy direction. In December 2017, staff presented a balanced solution including revenue options, operating expenditure reductions focusing on new ways of doing business and minimizing service level impacts, as well as shared employee responsibility for concessions. In April 2018, staff will return to Council for adoption of the three year Fiscal Health Response Plan providing strategic budget direction to inform the 2018-19 Supplemental C-13 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 14 Fiscal Sustainability and Responsibility: 2017-19 Action Plan Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. # Task Completion Date Revised Status Budget and policy direction for the 2019-21 Financial Plan.9 Return with Strategic Budget Direction for 2018-2019. Winter 2017/ Spring 2018 Staff will return on April 17, 2018 with Fiscal Health Response Plan Strategic Budget Direction to inform 2018-19 Supplemental Budget and provide policy direction for 2019-21 Financial Plan.10 Implement Fee Study changes and maintain fees consistent with Council policies on cost recovery. Ongoing Service charges fees were updated in summer of 2017 and implemented with the 2017-19 Financial Plan. Staff will continue to monitor actual expenditures compared to the adopted fees and make recommendations for adjustments as needed. Fees are updated for CPI on annual basis. Per City policy a formal Service charges fee study will be conducted every five years. 11 Continue to align Local Revenue Measures with voter priorities as determined by the Revenue Enhancement Oversight Committee. Ongoing Staff holds public meetings with Revenue Enhancement Oversight Committee (REOC) as required by the ballot measure and ensures review of the revenues and expenditures by REOC for compliance with the ballot measure intent. 12 Conduct a long-term fiscal study that incorporates the anticipated financial impacts related to the planned closure of the Diablo Canyon Power Plant. Spring 2018 Staff is researching alternative funding sources to conduct the study due to California Public Utilities Commission ruling to reject the settlement with PG&E with the local municipalities.13 Conduct a comprehensive review of fiscal policies and fund balance requirements. Winter 2017 Fall 2018 Staff is continuing to review the fiscal policies and fund balance requirements as part of the Fiscal Health Response Plan and will continue to make recommendations aligned with Council policy direction. 14 Provide a recommendation for strategic budget direction prior to submitting a 2018-19 Supplemental Budget that achieves long-termSpring 2018 Staff will present recommendations on April 17, 2018 with Fiscal Health Response Plan Strategic Budget Direction. C-14 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 15 Fiscal Sustainability and Responsibility: 2017-19 Action Plan Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. # Task Completion Date Revised Status structurally balanced fiscal outlook. 15 Implement operating cost reductions consistent with adopted 2018-19 budget. Through Summer 2019 Pending 2018-19 Supplemental Budget Adoption. 16 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. Ongoing The City is developing recommendations for Fiscal Health Response Plan focusing on alternative ways of doing business to reduce cost while minimizing service level impacts. The City is also engaging in implementation of best practices through the Motion project and work with Government Fiscal Officers Association including best practices for resource allocation. Staff is actively pursuing opportunities where savings can be achieved through refinancing of debt and early pay-down of unfunded liabilities. 17 Monitor and report performance measures at Budget Supplement and Financial Plan adoption. Ongoing Performance measures were incorporated into the 2017-19 Financial Plan and will be presented to Council with 2018-19 Supplemental Budget.18 Work with the City Council to review Labor Relations Objectives and define negotiating parameters consistent with the Fiscal Responsibility Philosophy and the Compensation Philosophy.Summer 2017 March 2018 Council will review in open session the Labor Relations Objectives in advance of the next round of negotiations with labor groups. 19 Monitor liability self-insured/excess insurance program and explore options with CJPIA to control workers’ compensation costs. Ongoing The next opportunity to opt in to the worker’s compensation excess insurance program is July 2018. Staff will provide a recommendation as to whether this option is likely to result in ongoing savings by April 2018 and will continue to monitor each year. 20 Develop a policy to address the funding status of volatile insurance programs (liability, workers’ compensation). Evaluate the purpose and Spring 2018 As part of 2017-19 Financial Plan development, the Council adopted fiscal policy for the Insurance Benefit C-15 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 16 Fiscal Sustainability and Responsibility: 2017-19 Action Plan Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. # Task Completion Date Revised Status use of the Insurance Benefit Fund to lessen the financial impacts of the fluctuations in insurance costs. Fund and Self-Insured Liability Program. 2017-18 is the first fiscal year managing the fund under these policy direction and staff is continuing to monitor trend and will make recommendations as needed. 21 Implement actions aimed at reducing workers’ compensation and liability claims by 30% in 3 years (by June 30, 2019). Ongoing In 2016-17, the City launched self-insured Liability program and ongoing savings of approximately $500 thousand per year have been realized in the 2017-19 Financial Plan. 22 Continue to monitor legislation that could impact City revenues and expenditures. Ongoing Staff is monitoring legislative changes that can impact revenues and expenditures and engages in advocacy through the City’s legislative platform. 23 Analyze fleet replacement policies with the goal of minimizing replacement costs and maximizing fleet utilization. Spring 2018 New Asset Management Software implemented in December 2017; system will be used to tract fleet issues and allow for secondary replacement policy thresholds. 24 Develop a contingency plan to address potential additional changes to long-term unfunded CalPERS and OPEB liabilities. Spring 2018 Staff made recommendations and receive policy direction from Council in December 2017 to set-up a Section 115 Pension Trust that will provide with increased cashflow management flexibility to address further changes in unfunded liabilities. 25 Make recommendation for allocation of one-time funds. Ongoing Staff made recommendations for the use of one-time funds from 2016-17 fiscal year end with this Mid-Year report. 26 Develop a creative financing plan to construct the replacement and development of critical public safety facilities (i.e. Police Station and Fire Stations). Summer 2018 Staff has developed 10-Year CIP addressing these funding needs and presented to Council in January 2018. Staff will return in April 2018 with recommendations for projects to be completed in the next 10 to 20 years and funding and financing recommendations.C-16 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 17 Fiscal Sustainability and Responsibility: 2017-19 Action Plan Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. # Task Completion Date Revised Status 27 Develop creative infrastructure financing options (grants, land based funding, local revenues) for Council consideration and implement as directed. Spring 2018 Staff is in process of establishing CFDs for San Luis Ranch and Avila Ranch development projects. Saff is also in the process of updating AB 1600 fee studies. Staff will be returning to Council in April 2018 to make recommendations for Capital Improvement Program funding and recommendations for revenue measure.28 Explore expanding utility fees to include storm water activities. Spring 2019 Staff is analyzing Stormwater program and recommendations for revenue generating options to recoup the costs associated with this unfunded mandate. 29 C-17 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 18 Downtown Vitality: 2017-19 Action Plan Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown and support the Downtown Association’s proposal to consider a Downtown Improvement District. # Task Completion Date Revised Status 1 Complete Design and begin Construction of the Palm/Nipomo Parking Structure. Summer 2019 Admin EIR circulating for review and comment January to March 2018. CHC review scheduled in early February.2 Construct next phase of Downtown Renewal capital improvement project focused on the 800 block of Higuera Street. Spring 2018 Summer 2018 Project is planned to be ready to start construction in Summer of 2018 pending coordination with Downtown Association and adjacent properties.3 Actively work with San Luis Obispo Council of Local Governments (SLOCOG) and Regional Transit Association (RTA) to relocate the current Downtown Transportation Center to a new location east of Santa Rosa Street. Ongoing 4 Design of the Mission Plaza Concept Plan - Mission Plaza Restroom Replacement. Spring 2019 Project scoping work to commence in the summer of 2018 to include the Mission Plaza restroom, café, storage area as well as concepts of what the design may look like if the Murray Adobe is incorporated into the plan.5 Continued downtown tree maintenance, sidewalk scrubbing, and street Sweeping. Ongoing Continued maintenance of downtown trees, sidewalk scrubbing, and street sweeping is ongoing. Downtown trees are maintained as needed within staffing limitations. Sidewalk scrubbing is completed twice a year. Downtown street sweeping is completed once a week.6 Begin construction of Marsh Street Bridge replacement at the southern gateway to Downtown. Spring 2019 Project is currently in the right-of-way phase obtaining necessary temporary construction easements from adjacent properties. Pending completion of right-of-way phase, authorization to advertise for construction bids will be requested of Caltrans with an anticipated start of construction in Spring 2019.7 Assist noncompliant properties to achieve compliance with the Downtown Fire Sprinkler Ordinance. Winter 2018 C-18 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 19 Downtown Vitality: 2017-19 Action Plan Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown and support the Downtown Association’s proposal to consider a Downtown Improvement District. # Task Completion Date Revised Status 8 Continued operation of the Community Action Team (CAT) in Downtown. Ongoing The Community Action Team continues to focus their efforts in addressing chronic offenders within the downtown. The CAT team works closely with city and county resources to help provide service to individuals in need. Additionally, they continue to work with City Rangers on open space violations and postings. In 2018 SLO County will be adding a full time mental health worker to the CAT team to help address individuals suffering from mental illness and addictions. 9 Continued Downtown Bicycle Patrol. Ongoing The police department continues to deploy two bicycle officers during the day and two bicycle officers to work during the evenings. These officers specifically address issues and crimes within the downtown corridor. This past year there were staffing shortages within patrol, which required that these officers be temporally reassigned to meet minimum staffing. 10 Coordination between the Police Department and County of San Luis Obispo to achieve expanded mental Health Services focused on Downtown. Ongoing The County recently approved the RFP for this position and is currently working on the contract language with the selected provider. The goal is to have the program up and running in early 2018. 11 Identification and implementation by Police Department of best practice tools designed to decrease nuisance calls in the Downtown. Ongoing The police department worked with downtown business owners this past year to maintain trespassing letters on file for local business. Staff worked with the City Attorney to explore possible amendments to the city's current panhandling ordinance. Unfortunately recent case law decisions were not favorable to the proposed changes. The police department continues to work closely with the downtown association, to help educate business owners and the public on actions they can take to reduce nuisance calls.C-19 2016-17 MID-YEAR REPORT: UPDATE OF MCG & OIO MCG & OIO UPDATE PAGE 20 Downtown Vitality: 2017-19 Action Plan Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown and support the Downtown Association’s proposal to consider a Downtown Improvement District. # Task Completion Date Revised Status 12 Council and community review and consideration of Downtown Concept Plan. Summer 2017Completed 13 Council and community review and consideration of Mission Plaza Master Plan. Fall 2017 Completed In September 2017 Council received a presentation regarding the Mission Plaza Concept Plan, provided input on design features.14 Following adoption, oversee the implementation of the Downtown Concept Plan. Ongoing Additional assessment of potential projects included in the 10 Year CIP forecast.15 Following adoption, develop a phasing and resources needed plan for the implementation of the Mission Plaza Concept Plan. Summer 2018 Phased implementation plan is included in 10-Year CIP that will be considered as part of the Fiscal Health Response Plan. Based on Council direction and Community priorities, the implementation plan will be refined to align with budget constraints.16 Complete the City’s Zoning Regulations Update. Summer 2018 8/2018 The Planning Commission has had the Zoning Regulations Update as a standing item on their agenda since August, 2017 to review White Papers, preliminary Articles, and receive public comment. A Council Study Session is scheduled for April 10, 2018, a Public Workshop in May, Planning Commission hearings in June, and Council hearing in August.17 Complete a Feasibility Study for the Upper Monterey Area Plan Parking District. Summer 2019 18 Complete a Feasibility Study of Downtown Maintenance District. Summer 2019 SLO Downtown is leading this effort and a study session is scheduled with the City Council in March 2018 to present findings and recommendations.19 Coordinate, in partnership with the Downtown Association, exploration of opportunities to provide enhanced maintenance or other services to maintain Downtown vitality. Ongoing C-20 Police Station Replacement2018 Silt RemovalPickleball CourtsCity / County Library Major Maint. &…Water Resource Recovery Facility…Laguna Lake Dredging & Sediment…Open Space MaintenanceOpen Space AcquisitionNeighborhood Paving 2018Traffic Safety ReportPrado Road InterchangePrado Road Creek Bridge WideningNeighbhorhood Traffic ManagementWater Distribution System ImprovementsSafe Routes to School/Anholm BikewayRailroad Safety TrailBob Jones TrailPalm Nipomo Parking StructurePark Major Replacement & Repairs 20%50%0% 60%25% 25%75%50%25%80%75%80%80%90%25%25%25% 65% 35% 50% 50% 25% Status of Major CIP Projects (as of 12/31/17)Under Study or Design Under Construction Replaced Equipment &Vehicles(Purchased 12 of 17 vehicles) Replaced I.T. Hardware andSoftware 71% 45% Status of Major Fleet & I.T. Replacements C-21 Section D RECENT FINANCIAL AND REVENUE REPORTS D-1 D-2 Monthly TOT Report November 2017 November 30, 2017 This report covers the City's transient occupancy tax (TOT) revenues for November 2017 compared with the two prior years. As reflected below, revenues for the month of November 2017 are up by 4.2% from the same month last year and up .9% year to date over the prior year. Currently this report covers 39 hotel establishments representing 2,214 rooms. It also includes $6,256.86 collected from 47 Homestay properties year to date. For more information, please call Marjorie Hernandez at (805) 781-7436. 2015-16 2016-17 2017-18 Amount Percent July $845,455 877,391 880,321 2,930 0.3% August 775,448 765,232 734,830 (30,402) -4.0% September 643,127 650,117 701,230 51,112 7.9% October 642,221 628,049 612,859 (15,190) -2.4% November 467,939 497,218 518,039 20,821 4.2% Year To Date Total 3,374,190 3,418,008 3,447,278 29,271 0.9% December 429,600 434,722 434,722 - January 387,304 395,975 395,975 - February 466,915 439,735 439,735 March 559,235 549,732 549,732 April 609,409 708,724 708,724 May 598,093 645,114 645,114 June 731,711 765,362 765,362 This report is based on the amounts reported by the operators for the month in which the tax is due. 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