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2017-19 Financial Plan Supplement
Proposed 2018-19 Budget
Picture courtesy of Laura Schwoerer - Instagram @wildflowerfolie
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2017-19 Financial Plan Supplement
Proposed 2018-19 Budget
Heidi Harmon, Mayor
Carlyn Christianson, Vice Mayor
Aaron Gomez, Council Member
Andy Pease, Council Member
Dan Rivoire, Council Member
Derek Johnson, City Manager
Prepared by:
Cheryl Blair, Administrative Analyst
Brigitte Elke, Interim Finance Director
Alex Ferreira, Budget Manager
Traci Kawaguchi, Accountant
Mika McGee, Administrative Assistant
Rico Pardo, Accounting Manager/Controller
Shelly Stanwyck, Parks and Recreation Director
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2017-19 Financial Plan Supplement
Proposed 2018-19 Budget
Key Staff Contributors to the 2018-19 Budget
Department Heads
Deanna Cantrell, Police Chief
Michael Codron, Community Development Director
Brigitte Elke, Interim Finance Director
Daryl Grigsby, Public Works Director
Greg Hermann, Interim Deputy City Manager
Monica Irons, Human Resources Director
Carrie Mattingly, Utilities Director
Garret Olson, Fire Chief
Shelly Stanwyck, Parks and Recreation Director
Fiscal Officers & Fund Managers
Gamaliel Anguiano, Transit Fund
Ryan Betz, Public Works & Administration
Cheryl Blair, Motion Project & Utilities
James Blattner, Fire
Christina Claxton, Utilities Sewer and Water Funds
Rebecca Cox, Community Development
Amy Fletcher, Human Resources
Melissa Ellsworth, Police
Michelle Hafner, Human Resources
Robert Hill, Administration
Matt Horn, City Engineer Scott Lee, Parking Fund
Rico Pardo, Finance
Brittani Roltgen, Human Resources
Cori Ryan, Community Development & Public Works
Lindsey Stephenson, Parks and Recreation
Nickole Sutter, Human Resources
Elizabeth Turbow, Human Resources
Kelly White, City Attorney
Greg Zocher, Human Resources
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TABLE OF CONTENTS
Section A
BUDGET SUPPLEMENT OVERVIEW
City Manager’s Message………………………….A1
Fiscal Health Response Plan………………….…..A3
Application of Fiscal Health Plan………….…….A-5
Summary of Financial Changes……………….…A-7
Status Reports: Goals & Performance Measures...A-8
Economic Outlook……………………………….A-8
Five-Year Fiscal Forecast for General Fund.……A-9
Fiscal Policy Direction Fund Balances…………A-14
Update on Local Revenue Measure…………….A-17
Update on 18-19 Capital Improvement Projects..A-17
Enterprise Funds………………………………..A-20
Conclusion……………….……………………..A-22
Section B
MCG/OIO/PERFORMANCE MEASURES
2017-19 MCG Action Highlights
Housing……………………………………..B-1
Multi-Modal Transportation………………..B-2
Climate Action…………………………..….B-2
Fiscal Sustainability……………………...…B-3
Other Important Objectives………………………B-4
Task and Status Reports……………………B-5
Performance Measures………………….………B-17
Section C
FISCAL HEALTH RESPONSE PLAN……...C1-8
Section D
SUMMARY OF OVERALL BUDGET
SUPPLEMENT……………………...………….D-1
Changes in Financial Position……………..……..D-2
Budget Summary………………………………..D-33
Interfund Transactions………………………….D-40
Budget Graphics and Summaries……………….D-47
Section E
OPERATING PROGRAMS
Overview…………………………………………..E1
2018-19 Operating Program Reductions……….…E2
Section F
2017-19 LOCAL REVENUE MEASURE
EXPENDITURES……………………………...F1-9
Section G
CAPITAL IMPROVEMENT PROJECTS
Overview……………………………………….....G1
Status of Major 17-18 CIP Projects….……………G2
Community Safety………………………….…..G-13
Community & Neighborhood Livability………..G-15
Section H
ENTERPRISE FUND REVIEWS
Water Fund……………………………………….H-1
Sewer Fund……………………………………....H-3
Whale Rock………………………………………H-8
Parking Fund…………………………………..…H-8
Transit Fund…………………………………….H-16
Section I
DEBT SERVICE OBLIGATIONS
Overview…………………………………………...I1
Debt Service Requirements…………………….....I-5
Section J
FINANCIAL AND STATISTICAL TABLES….J1
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Summary of Financial Plan Budget Process
Purpose
The City’s two -year Financial Plan is a nationally recognized process that emphasizes long -range
planning and effective program management with integrated polices focused on fiscal
sustainability. The Financial Plan links goals and objectives with resources needed to accomplish
them. The Financial Plan begins with community engagement followed by Council’s
establishment of Major City Goal a nd Other Important Objectives and description of work
programs, resource allocations, and revenue projections to accomplish the adopted Financial Plan.
Financial Plan Policies
The City has adopted budget and fiscal policies which provide the foundation for the preparation
and implementation of the Financial Plan while addressing the City’s long term fiscal health. The
polices are included in the adopted 2017-19 Financial Plan and cover a wide array of topics from:
user fee cost recovery goals to enterprise fund rates to investments and debt management to capital
projects, fund balance and reserves and human resource management and productivity.
Preparation and Review Process
As directed by the City Charter, the City Manager is responsible for preparing the City Budget and
submitting it to Council for approval. Specific steps vary from year to year but generally the
process follows this two-year cycle:
First Year.
The Financial Plan process begins with community engagement followed by Council goal setting.
Following budget instructions are given to all departments. Budget proposals and a fiscal forecast
follow. After comprehensive review a Preliminary Financial Plan is released for public comment.
After a series of public workshops and hearings the Council adopts the Financial Plan by June 30th
and Budget for the first year.
Second Year.
Before the beginning of the Financial Plan the Council reviews progress, reviews an updated fiscal
forecast, and adjusts as necessary before approving appropriations for the second year of the
Financial Plan.
Changes to the 2017-19 Financial Plan at the 2018-19 Budget Adoption
This Financial Plan process is slightly different due to changes in the City’s 10 -year Financial
Forecast associated with changes to unfunded liabilities associated with the City’s pensions. As a
result, the Council and public since summer 2017 have studied this problem, identified a
framework in which to address it over the next three years, and on April 17, 2017, adopted a Fiscal
Health Respo nse plan to guide the 2018-19 Budget as well as the 2019-21 Financial Plan.
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How to Use this Document
This document is broken into sections for ease of use. Each section has a particular focus.
Section A: Budget Overview 2018-19
This section highlights the key issues considered in preparing this document and highlights each
of the sections contained. It includes the City Manager’s Message, an executive summary of the
document, as well as general discussions of each of the key document sections. The 10-Year Fiscal
Forecast is presented in this section as are highlights to proposed changes to the 2018-19 Budget.
Section B: Status of Goals and Objectives and Performance Measures
Presented in summary and tabular form is an overview of the progress and any notable changes to
date on the 2017-19 adopted Major City Goals and Other Important Objectives as well as
departmental Performance Measures.
Section C: Adopted Fiscal Health Response Plan
The adopted Fiscal Health Response Plan guides this document and is included in its entirety for
reference.
Section D: Summary of Overall Budget Supplement
A series of simple tables and graphs highlight key financial relationships and summarize the
overall budget document.
Section E: Operating Programs
As guided by the Fiscal Health Response Plan a series of operating program reductions are
proposed and noted. Expenditures changes are presented in summary form by Function, Program,
and Department.
Section F: Local Revenue Measure.
Progress on the City’s Local Revenue Measure funded projects and programs is provided.
Section G: Capital Improvement Projects
Progress on the City’s Capital Improvement Plan is described to date as are proposed changes for
2018-19 expenditures.
Section H: Enterprise Funds
For ease of use, all Enterprise Fund Reviews are included in this document which includes:
Parking, Sewer, Transit, and Water.
Section I: Debt Service
A summar y of the City’s Debt Obligations is presented and reflects savings and changes due to
refinancing of several obligations in Spring 2018.
Section J: Financial and Statistical Tables
This section summarizes revenues by major category and sources; expenditures by type and
function; and authorized regular employees by department.
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Council Resolutions Related to the 2018-19 Budget
RESOLUTION NO. ### (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, ADOPTING THE APPROPRIATIONS LIMIT FOR 2018-19.
WHEREAS, the voters approved the Gann Spending-Limitation Initiative on November
6, 1979 and Proposition 111 on June 5, 1990, which establish and define annual appropriation
limits on state and local government agencies; and
WHEREAS, regulations require that the governing body of each local agency establish its
appropriations limit and annual adjustment factors by resolution; and
WHEREAS, the required calculations to determine the City’s appropriations limit, and
estimated appropriations subject to limitation for 2018-19, have been performed by the Finance
Department and are available for public review.
NOW THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis
Obispo hereby adopts the City’s appropriations limit and annual adjustment factors for 2018-10 as
follows:
Appropriations Limit 2018-19
$72,562,034
Increase in Non-Residential Assessed
Valuation Due to New Construction
20.40%
Population Factor: County Population
Growth
0.35%
Compound Percentage Factor
(multiplicative not additive)
1.208%
Appropriations Limit 2018-19
$87,667,937
Upon motion of Council Member __________________, seconded by ____________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted on this 19th Day of June 2018.
__________________
Mayor Heidi Harmon
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ATTEST:
___________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
____________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have herunto set my hand and affixed the official seal of the City of
San Luis Obispo, California this ___ day of _______________, 2018.
____________________
Teresa Purrington
City Clerk
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RESOLUTION NO. ### (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, APPROVING THE 2017-19 FINANCIAL PLAN SUPPLEMENT,
ADOPTING THE 2018-19 BUDGET, AND AMENDING THE FUND BALANCE AND
RESERVE POLICIES.
WHEREAS, the Council adopted the 2017-19 Financial Plan on June 20, 2017,
which established comprehensive financial and policy guidelines for fiscal years 2017-18 and
2018-19; and
WHEREAS, the 2017-19 Financial Plan included appropriations for fiscal year 2017 -18;
and
WHEREAS, the City Council on April 17, 2018 adopted a Fiscal Health Contingency Plan
in response to rising CalPERS pension costs; and
WHEREAS, the City Council has reviewed proposed changes to the 2017-19 Financial
Plan that are guided by the adopted Fiscal Health Response Plan and are to be effective for fiscal
year 2018-19 resulting in operating program reductions, new ways of doing business, and new
revenues; and
WHEREAS, the 2017-19 Financial Plan includes budget and fiscal policies that provide
for direction on Financial Plan Objectives, Financial Reports, Budget Administration, General
Revenue Management, User Fee Cost Recovery Goals, Enterprise Fund Fees and Rates, Revenue
Distribution, Investments, Appropriations Limitation, Fund Balance and Reserves, Capital
Improvement Project Management, Capital Financing and Debt Management, Human Resource
Management, Productivity, and Contracting for Services; and
WHEREAS, it is proposed that the following be added to the City’s adopted Financial
Policies section Fund Balance and Reserves as letter “J”. J. General Fund Revenue Stabilization
Fund. The City will maintain a reserve for the purposes of offsetting unanticipated fluctuations
in general fund revenues to provide financial stability. The funding target for the Revenue
Stabilization Reserve will be $1,000,000 during the term of the adopted Fiscal Health Response
Plan. Use and allocations of funds of the Revenue Stabilization Fund will be made upon Council
approvals of the Financial Plan or as becomes necessary during any fiscal year.; and
WHEREAS, it is proposed that the following be added to the City’s adopted Financial
Policies section Fund Balance and Reserves as letter “K”. K. Capital Projects Reserve Fund. The
City will maintain a reserve for the purposes of offsetting unanticipated cost increases, unforeseen
conditions, and urgent unanticipated projects to provide continued investment in infrastructure
maintenance and enhancement. Use and allocations of funds from the Capital Projects Reserve
Fund will be made to Capital Projects including Fleet, Information Technology, and Major
Facility Replacement upon Council approvals of the Financial Plan or as necessary during any
fiscal year; and
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WHEREAS, it is proposed that the following be added to the City’s adopted
Financial Policies section Long-Term Financial Planning Letter “B”. In applying
unassigned fund balances to pay down long-term unfunded liabilities a two-part strategy
will be used to address the liability to the greatest extent possible. One, annual payments
to CalPERS for unfunded liabilities will address interest and principal. Two, analysis of
a Section 115 Trust as mechanism to address future pension obligations and uncertainties
will continue and a recommendation about formation of the same will be made during the
term of the adopted Fiscal Health Response Plan.; and
WHEREAS, The City Council will, with this 2017-19 Financial Plan Supplement and the
2018-19 Budget, appropriate: funds to the Infrastructure Investment Fund ; grant funds to the Mid
Higuera Bypass project ; Development Services Fees to the Electronic Plan Review project ;
General Fund monies to design and construct a Park at 533 Broad Street ; and reallocate various
funds from several projects to accomplish the Laurel Lane “Complete Street”.
WHEREAS, the City Manager submitted the 2017-19 Financial Plan Supplement and the
2018-19 Budget to the City Council for its review and consideration at a duly noticed meeting.
NOW THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo
that:
1.The above recitals are true and correct.
2.The following shall be added to the City’s adopted Financial Policies section Fund Balance
and Reserves as letter “J”. J. General Fund Revenue Stabilization Fund. The City will
maintain a reserve for the purposes of offsetting unanticipated fluctuations in general fund
revenues to provide financial stability. The funding target for the Revenue Stabilization
Reserve will be $1,000,000 during the term of the adopted Fiscal Health Response Plan.
Use and allocations of funds of the Revenue Stabilization Fund will be made upon Co uncil
approvals of the Financial Plan or as becomes necessary during any fiscal year .
3.The following shall be added to the City’s adopted Financial Policies section Fund Balance
and Reserves as letter “K”. K. Capital Projects Reserve Fund. The City will maintain a
reserve for the purposes of offsetting unanticipated cost increases, unforeseen conditions,
and urgent unanticipated projects to provide continued investment in infrastructure
maintenance and enhancement. Use and allocations of funds from the Ca pital Projects
Reserve Fund will be made to Capital Projects including Fleet, Information Technology,
and Major Facility Replacement upon Council approvals of the Financial Plan or as
necessary during any fiscal year.
4.The following shall be added to the City’s adopted Financial Policies section Long-Term
Financial Planning as Letter “B”. In applying unassigned fund balances to pay down long-
term unfunded liabilities a two -part strategy will be used to address the liability to the
greatest extent possible. One, annual payments to CalPERS for unfunded liabilities will
address interest and principal. Two, analysis of a Section 115 Trust as mechanism to
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address future pension obligations and uncertainties will continue and a recommendation
about formation of the same will be made during the term of the adopted Fiscal Health
Response Plan.
5. That the 2017-19 Financial Plan Supplement and the 2018-19 Budget is hereby adopted as
presented in the Budget Supplement Document .
Upon motion of Council Member __________________, seconded by ____________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted on this 19th Day of June 2018.
__________________
Mayor Heidi Harmon
ATTEST:
___________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
____________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have herunto set my hand and affixed the official seal of the City of
San Luis Obispo, California this ___ day of _______________, 2018.
____________________
Teresa Purrington
City Clerk
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SECTION A: BUDGET SUPPLEMENT OVERVIEW 2018-19
CITY MANAGER’S MESSAGE
On behalf all City staff, it is my privilege to present the 2018-19 Budget Supplement. Budget Supplements
typically follow budget appropriations identified in the two-year financial plan. This 2018-2019 Budget
Supplement is different in that the Financial Plan indicated that changes would be made to adjust revenues
and expenditures to address increased costs related to unfunded liabilities related to CalPERS pensions.
These changes were detailed in a report provided to the City Council in mid-April.
The 2018-2019 Budget Supplement represents the culmination of a yearlong effort to engage the
community in the process of identifying a balanced and thoughtful approach to address budgetary issues
arising from unfunded CalPERS pension liabilities. City Staff from every department participated in the
process and gave their input and best recommendations on how to reach and maintain financial
sustainability with a combination of doing business differently, new revenues and employee concessions.
The 2018-19 Budget Supplement is the second year of the 2017-19 Financial Plan (adopted by Council in
June 2017). This document enables the continued implementation of the adopted Major City Goals and
Other Important Objectives as well as makes necessary budget reductions to address the City’s long term
fiscal challenges ahead.
Council members, and members of the public who follow the City budget process, will notice a few
formatting and content changes with this document. The changes are because this is the first Budget
Supplement to which the adopted Fiscal Health Response Plan serves as a guiding policy document and the
team is responding to input to simplify the budget document .
The 2018-2019 Budget Supplement largely follows the proposed budget appropriations shown in the 2017-
2019 Financial Plan. The totality of the changes is summarized in the Fiscal Health Response Plan (FHRP
or “the Plan”). The Fiscal Health Response Plan is included in the Budget Supplement as are all Enterprise
Funds so that one document may be referenced for ease of use.
It is important to remember that the Plan sets into motion a series of future actions and monitoring so that
the City stays ahead of and proactively addresses the unfunded liabilities of CalPERS pensions. Each and
every subsequent financial plan and supplemental budget will evaluate the efficacy of financial actions to
maintain financial sustainability and will recommend future actions t o meet the City’s financial obligations.
A-1 Pg. 20
As noted in the April 17, 2018 adoption of the Plan savings accrued now will reduce and stabilize the
significant pension cost increases facing the City of San Luis Obispo and 3,000 other agencies in California
due to a more than doubling of its pension costs associated with unfunded liability with CalPERS. For the
City of San Luis Obispo, to address the projected cost increases, the City must reduce its expenditures in
the General and Enterprise Funds by $8.9 million dollars over the next three years. The 2018-19 Budget
Supplement is the first year of addressing the problem consistent with the adopted FHRP.
Collaboratively, a team of City staff conducted multiple internal and external conversations and
presentations in order to address this most significant fiscal challenge facing the City. The result is a three-
year FHRP Plan that establishes a framework to respond to the long-term fiscal impacts of the significant
increases in required pension contributions to the CalPERS retirement system. Using existing financial
policies as a guide, the Plan proposes reductions in three main areas in a balanced manner; new ways of
doing business and operating reductions; new revenues (focused on a cannabis tax); and employee
concessions. The application of the Plan to the 2018-19 Budget Supplement results in reductions that have
the least amount of service level impacts possible and are achievable during this budget year.
In the face of these financial challenges, I continue to be proud of the high levels of service that we provide
to the City and the recent customer satisfaction survey results that indicate that 92% of our community
continue to rank San Luis Obispo as an excellent place to live. Your City team continues to do its work
with pride and does so with the highest commitments to public service.
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FISCAL HEALTH RESPONSE PLAN
The Problem
The City is facing the immediate need to reduce ongoing expenditures in all funds by $8.9 million by
2020-21 ($7.5 million in General Fund and $1.4 million from the Enterprise Funds). The need arises from
the long-term financial impacts related to pension costs. This need stems from significant policy changes
made by the California Public Employees’ Retirement System (CalPERS) affecting the unfunded
liabilities of all PERS member organizations. If no change is made to City operating budgets, expenditures
will begin to outpace revenues. To address this problem, and to regain a balanced budget, staff developed
a Fiscal Health Response Plan to provide strategic direction and road map to continued long -term fiscal
health and financial sustainability.
The Adopted Fiscal Health Response Plan
On April 17, 2018 Council Adopted its Fiscal Health Response Plan establishing a framework to respond
to the long-term fiscal impacts of the significant increases in required pension contributions to the
CalPERS retirement system. The Plan is organized as follows.
Highlights of FHRP’s Elements
The FHRP’s elements contain three key components and two options to address unfunded liabilities.
Existing financial policies provide the foundation for the Plan. The Plan itself emphasizes a balanced
application of the three components over the three-year term.
New Revenues
The General Fund’s primary sources of revenues are from taxes and fees for services. A General Fund
tax on cannabis, requiring voter approval, is proposed as the primary new General Fund revenue for this
component of the plan.
Purpose Problem General &
Enterprise Funds
Key Policies and
Principles
Integration with
Financial
Planning Process
Elements of Plan New Revenues
New Ways of
doing Business
Employee
Concessions
Prepayment or a
Trust
External Impacts
to Plan Communications Plan
Implementation
Key Components To Achieve a
Structurally Balanced Budget
•New Revenues
•Operating Reductions and New Ways of
Doing Business
•Employee Concessions
Options to Address Unfunded Liabilities
•Prepayment of CalPERS
•Section 115 Pension Trust Formation
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Taxes on this emerging industry would only apply to businesses operating within City limits. Council
provided direction on this topic on May 15, 2018 to forward a cannabis tax measure for voter consideration
for the general election scheduled for November 2018. Should a voter approved cannabis tax be
unsuccessful in November 2017 other new revenues would have to be pursued. Staff would return to
Council for further direction on that topic or for adjustments to the allocation of components of this plan.
Operating Reductions and New Ways of Doing Business
All Funds, General and Enterprise, will participate in this component. The Plan sets forth a list of
operating reduction types to be pursued along with new ways of doing business. Examples include focus
on energy efficiency projects and reduction in consumable goods as well as thoughtful department
reorganizations that enable continued service delivery with minimal impacts to residents and other
customers. These concepts as outlined in the P lan are generally as follows.
Operating Reductions New Ways of Doing Business
1.Refinancing
2.Energy Efficiency and Less Consumption
3.Renegotiated Agreements with Vendors
4.Proactive Compliance with Collections
5.Improved Risk Management
6.Proactive Fiscal Management
1.Energy Efficiency
2.Enterprise Resource System
3.Equipment Replacement
4.Thoughtful Department Re-organizations
Concessions – All City Employees and All Funds over the Three-Year Term of the FHRP
All regular City employees from all Funds participate in the same CalPERS retirement system. Council
adopted policies including the Financial Responsibility Philosophy, Compensation Philosophy, and Labor
Relations Objectives, all address the concept of “s hared responsibility.” This concept acknowledges the
responsibility of the City and its employees to share the burden of pension and health costs, including
addressing unfunded liabilities, while recognizing that increasing the employee share of this cost may
impact the City’s ability to attract and retain well -qualified employees that ultimately deliver programs
and services to the community. With that in mind, concessions are proposed as a primary component of
the Plan but, will be addressed in considerat ion of the City’s compensation philosophy and other
objectives.
The Plan recognizes a phased-approach for all reductions, including employee concessions, with the
anticipated ongoing concession amount reaching the objective of $1.9 million for all funds by fiscal year
2020-21. The Plan’s three-year term affords the City the ability to negotiate in good faith with its
bargaining units to tailor labor agreements that potentially meet mutual objectives. For example, funding
the CalPERS system to help ensure its future viability is in the interest of the employees that have service
in the system, while maintaining a “competitive” compensation package is in the interest of the City for
attracting and retaining well qualified employees.
External Impacts to the Plan
The plan is based on the fiscal forecast and the projected CalPERS actuarial assumptions that were
outlined to the City Council in December 2017. While the Plan is based on known projections and
assumptions, there could be future changes which could impact the City’s long-term fiscal forecast. As
noted in the Plan existing polices and plans are in place to guide the City if faced with further changes.
A-4 Pg. 23
These policies allow for the City Manager to take immediate actions to address sudden changes t hat
financially impact the City. The following external impacts are not incorporated in the Plan and therefore
would require further direction from Council at the time the impact is understood: changes in economic
conditions; the closure of Diablo Canyon; further changes to CalPERS contributions, and natural disaster.
APPLICATION OF FISCAL HEALTH PLAN TO 2018-19 BUDGET SUPPLEMENT
Proposed Plan Application to the General Fund 2018-19 Budget Supplement
Each City Department has applied policies and guiding principles of the Plan to their 2018 -19 Budget
submittals. The combination of changes achieves a balanced budget for 2018-for all funds as described
below in the 10-year fiscal forecast. With the budgetary changes at this Supplement, those with the least
amount of service level impacts were proposed by Departments. The reductions proposed were also
achievable in this first year of the Plan. The 2018-19 Budget can be achieved with the reductions and
increases to revenues in the General Fund and Enterprise Funds as presented. The details of how this is
to be accomplished is discussed under each Plan Component below for the General Fund and separately
by the Enterprise Funds in each Funds’ sections. The proposed operating reductions as applied to the
various budget functions are shown in the following graphic for 2018 -19.
General Fund New Revenues 2018-19
At this time, several assumptions have been made to include Cannabis as a new revenue stream beginning
in 2018-19. The primary assumption includes the passage of a ballot initiative in November 2018 for
consideration of new taxes on cannabis business activity in the City.
Optimistically, cannabis business activities would begin at the earliest in January 2019. As it is expected
to take some time for the City to establish its permitting and regulatory protocols, and for businesses to
find appropriate pro perties and obtain the necessary permits to operate, tax revenues from Cannabis are
$556,712 $75,450
$140,264
$9,525
$91,301
$207,600
A-5 Pg. 24
not anticipated until the fourth quarter 2019. Staff has projected $100,000 in revenues from this tax in
2018-19.
General Fund Operational Reductions and New Ways of Doing Business Proposed for 2018-19
The operational reductions and/or new ways of doing business include the refinancing of City bonds as
well as cash flow management for the required annual payment to CalPERS. Public Works has been able
to identify significant energy efficiencies and consumption reductions in its proposed reductions.
Consultant services and other agreements have been renegotiated to realize reductions while not resulting
in operational impacts. Some departments had the opportunity to accomplish or begin thoughtful
reorganization through the strategic use of employee retirements or other transitions. Some of these
reorganizations have been completed, are underway, or will be implemented over the next three years. All
departments evaluated expe nditure trends over the past five years to identify operational savings. Three
areas of tax and fee enforcement opportunities for more accurate revenue collections have been identified
including business license tax, Transient Occupancy Tax as it relates to homestay and code enforcement.
The details of these proposed changes are noted specifically in Section E of this Document and are
summarized below by Department or by action when organizationally based. Operational reductions and
new ways of doing business total would result in $1,372,000 in 2018-19.
2018-19 Operating Reductions & New Ways
of Doing Business by Departments
2018-19 Operating Reductions & New Ways
of Doing Business by Organization
Department Reduction Action Reduction
Administration $115,000 Debt Refinance $83,000
Finance $15,000 CalPERS Lump Sum Payment $323,000
City Attorney $19,000 Business License $150,000
Human Resources $30,000 Contract Renegotiation $20,000
Parks and Recreation $131,000 TOT Homestay $50,000
Community Development $10,000 Code Enforcement $50,000
Public Works $314,000
Fire $29,000
Police $33,000
TOTAL $696,000 Total $676,000
Summary of Appropriation of Year-End Excess of Reserve
The proposed 2018-19 Supplemental Budget allocates the available 2017-18 Fiscal Year end General Fund
balance above the 20% policy level in the amount of $6.5 million. In February 2018, the 2017-18 Mid-
Year Budget review was presented to Council. That presentation highlighted the 2016-17 Fiscal Year End
unassigned General Fund Balance of $5.9 million dollars. Due to better than expected revenues and
significant operational savings, the General fund will end the year with excess revenue over required reserve
levels. Staff recommends using $1 million to establish a revenue stabilization reserve; the policy for which
is discussed below and funding for the infrastructure investment fund of $250,000. As approved in mid-
year, $4.2 million is recommended to be used for pay-down of the unfunded liability and $1.3 million will
fund the public safety downtown bollard project for the Farmers’ Market.
A-6 Pg. 25
Recommended Appropriations of excess Reserve
Public Safety CIP (Downtown bollards) $1,300,000
Revenue Stabilization $1,000,000
Infrastructure Investment Fund $ 250,000
Trust/Prepay $4,200,000
2018-19 Appropriations
To be adopted by Resolution, the proposed appropriations for the 2018-19 Financial Plan Supplemental
Budget are as follows
Allocation Type Governmental Funds Enterprise & Other
Funds
Total
Operating Programs $68,722,687 $33,700,168 $102,422,855
CIP $25,079,384 $26,322,583 $51,401,967
Debt Service $3,185,500 $5,354,158 $8,539,658
Total $96,987,571 $65,376,909 $162,364,480
Consumer Price Index (CPI) Adjusted Fees
After many years of no change, due in large measure to economic conditions associated with the Great
Recession, in 2017 the City Council reviewed a study of General Fund costs of service fees for service
related and regulatory activities. As a result of that study many fees were adjusted to appropriately reflect
the current costs of providing service to the public. Upon adoption on April 18, 2017 of the updated
citywide user and regulatory fees, it was directed that a majority of the fees (except for Parks and Recreation
which are adjusted by policy and were adopted for two fiscal year s) be adjusted by CPI on an annual basis
under the City Manager’s authority.
SUMMARY OF FINANCIAL CHANGES FOR THE GENERAL FUND
Allocations in the General Fund are proposed based on available fund balance, actual revenues received in
the current fiscal year, 2017-18 and projected revenues and expenditures throughout the 10-year Fiscal
Forecast.
In alignment with the Financial Responsibility Philosophy, the Adopted Major City Goals and Other
Important Objectives, the adopted Fiscal Health Response Plan and the Council adopted policy to address
the City’s Long-Term unfunded liabilities, the proposed 2018-19 Financial Plan Supplement allocates
General Fund funding for the following purposes.
CIP - Increases $2,853,477
Long-Term Unfunded Liability Reduction $4,200,000
Fiscal Health Response Plan Revenue Stabilization Fund $1,000,000
As noted above, $1,372,000 is operational reductions and new ways of doing business are proposed by
Departments to reduce the overall operating budget for the City. The effect of these reductions begins to
address the $7.5 million General Fund liability r equired to address the long-term financial impacts related
to pension costs. This need arises from significant policy changes made by CalPERS.
A-7 Pg. 26
STATUS REPORTS: GOALS & PERFORMANCE MEASURES
Major City Goals and Other Important Objectives
Every two years with the adoption of the City’s Financial Plan the most important, highest priority work
programs are established, with resources to accomplish them, as Major City Goals and Other Important
Objectives. The 2017-19 Major City Goals are.
Housing. 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 Climat e Action Plan.
Multi-Modal Transportation. Prioritize implementation of the Bicycle Master Plan, pedestrian safety,
and the Short-Range Transit Plan.
Climate Action. 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.
Fiscal Sustainability and Responsibility. Continue to implement the City’s Fiscal Responsibility
Philosophy with a focus on economic development and responsiveness, unfunded liabilities, and
infrastructure financing.
At this phase of the Financial Plan, a majority of the Major City Goals and Other Important Objectives are
tracking at about half way to completion. Section B of this Document provides details for each Goal and
Other Important Objective and includes the status of tasks assigned to each with notes on accomplishments,
progress, as well as modifications to tasks.
Performance Measures
The 2017-19 Financial Plan document incorporated performance measures for each department. Each
department identified three performance measures, for City-wide total of 30, that represent important
internal and external services to the community. For example, one of the Police Department’s performance
measures, crime reduction, identified a reduction target of 5%. Utilizing rapid deployment of resources,
increased communication efforts through social media, problem solving tactics and intelligence led
policing, crime reduction was reduced by 13% in 2017-18. The list of performance measures can be found
in the Major City Goal/Other Important Objectives and Performance Measure section of the 2018 -19
Supplemental Budget. Staff will continue to monitor the performa nce measures throughout 2018-19 and
will be identifying opportunities to incorporate performance measures into the City’s new Enterprise
Resource Planning software in 2018.
ECONOMIC OUTLOOK OVERALL
Indications continue that the U.S. economy will over the next several years stay on a steady growth path.
Last year, the U.S. economy added approximately 2.4 percent to the national Gross Domestic Product
(GDP) or approximately $376.5 billion dollars. This was based on improved investor and confidence. This
could change as new tax laws take effect particularly in California where the impacts of the elimination of
the mortgage deduction is not yet known. Volatility and change are predicted for the stock market and
federal lending rates and there is much debate about where the U.S. economy is headed.
Unemployment nationally and locally continues to be at unprecedented lows. California is the world’s 5th
largest economy and outpaces the nation in growth. The State is at, or near, full employment and wage
A-8 Pg. 27
pressure upward exists in all industries. Interestingly this results in job growth slowing as the labor market
is so constrained. Major state industries include high technology, agriculture, health care, construction, and
leisure and hospitality.
Locally, the City of San Luis Obispo continues to see employment rates outpacing the County. The City
continues to retain and attract technology companies including local startups from the community, Cal Poly,
and the HotHouse as well as serving as a preferred satellite location for several global technology companies
due to our highly educated labor market.
Factored for accounting anomalies, statewide fourth quarter receipts from local government’s one cent sales
tax were 4.5% higher than the holiday quarter of 2016. Rising fuel prices and solid gains from
building/construction supplies, restaurants and e-commerce were the primary contributors to the overall
increase. A healthy quarter for auto sales and construction equipment were additional factors. Tax revenues
from general consumer goods sold through brick and mortar stores rose a modest 1% over last year’s
comparable quarter while receipts from online sales increased 13.2%.
San Luis Obispo’s receipts from October through December sales were 1.3% higher than the same quarter
one year ago. Actual sales increased 4.1% net of accounting anomalies. Sales were up from several building
and construction group categories in addition to restaurants and new car dealers. Higher fuel prices buoyed
service station returns but gains from several classifications of consumer goods were offset by the closure
of a major outlet, a delayed posting in art/gift shops and lower sales in family apparel, sporting goods and
specialty stores. The larger allocation from the cou nty use tax pool was also a factor for the increase in
gross receipts.
Accounting events that affected one or both periods depressed results from casual dining and the food and
drugs group. Business and industry sector losses were exaggerated by adjustments that cut current quarter
proceeds from some accounts. In addition to the amounts reviewed above, voter -approved Measure G
generated 2.3% more than the year -ago total. Adjusted for aberrations, taxable sales for all of San Luis
Obispo County rose 5.7% over the same period; Central Coast regional totals were 3.9% higher.
Development activity continues to be strong with three major hotels under construction in the Downtown
and over 3,000 residential units under planning, building or construction phases. C ommunity Development
revenues are on track to slightly exceed forecasts for the 2017-2018 Fiscal Year and are a general indicator
of both construction activity and future projects. The City has made changes to its development review
process to improve overall processing times while continuing to enforce policies and standards which
protect the quality of life for existing and new residents. The City was one of eleven jurisdictions in the
State to meet or exceed housing production goals.
FIVE-YEAR FISCAL FORECAST FOR GENERAL FUND
The purpose of the Five-Year Fiscal Forecast for the general fund is to evaluate current and future fiscal
conditions. This provides guidance for decisions about goals, policies, and programs. It is important to
stress that the Forecast is not a budget. The City utilizes a five-year fiscal forecast based on objective
assumptions.
General Fund Revenues and Expenditures
The current Forecast is based on the analysis of the 2017-19 Financial Plan and is adjusted based on 2016-
17 fiscal year results as well as current trends in revenues and expenditures in the 2017-18 fiscal year to
date. The chart below reflects actuals thr ough fiscal year 2016-17, current fiscal year’s budget, and
projected revenue and expense figures.
A-9 Pg. 28
Revenue Highlights
Sales Tax is the City’s largest revenue. It accounts for 35% of the General Fund’s total revenues. The sales
tax growth rate continues to be positive. However, changes in purchasing habits (increased online retailing)
and lowering consumer confidence could significant ly impact this growth rate in the near future. As one
of the more volatile revenue sources, due to its responsiveness to changes in economic conditions, staff
have used conservative growth rates of 2% for this revenue source.
Property Taxes are the second major source of General Fund revenues. They constitute 17% of General
Fund revenues. Based on data from the County Auditor -Controller’s Office, the property tax for 2018-19
is projected to grow 5%. Based on Beacon Economics’ assessment of near term upward growth in home
prices this 5% growth rate is reasonable and realistic.
$15,000
$25,000
$35,000
$45,000
$55,000
$65,000
$75,000
$85,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Five-Year Forecast
Revenues Expenditures
Projection
($000s)
$15,000
$17,000
$19,000
$21,000
$23,000
$25,000
$27,000
$29,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
General Sales Tax Projection($000s)
A-10 Pg. 29
Transient Occupancy Tax (TOT) is the third major source of revenue for the General Fund and
constitutes 11% of its revenues. The growth rate for TOT was 4% for fiscal year 2016-17. Transient
Occupancy Tax growth rate currently assumes a conservative 1% annual growth. This growth rate
incorporates the possible delay of completed hotels in the City that are estimated to op en in about one
year’s time. With 350 new rooms added to the local market, there will be an estimated period of business
transfer (existing hotels losing business) within the City. After this initial period of adjustment, this
revenue is expected to stabilize over the longer term.
Development Review Fees
Development review fees remain at historical highs as development activity for planning, engineering, and
building permits continues to be very strong. A slight reduction of 2% is projected for the 2018-19 year,
based on the expected timing of large development review applications. Over the past year, activity has
been centered on engineering review of public improvement plans for new subdivisions in the Orcutt, San
Luis Ranch, and Avila Ranch neighborhoods. Next year, grading operations in the Orcutt Area will
continue, and the first building permits will be issued. Overall, building permit applications will increase
in 2018-19 and the City will see increased housing production in the Orcutt Area. However, larger numbers
of building permit applications are projected in future years when Avila Ranch and San Luis Ranch
complete grading and public improvements and join the Orcutt Area in the housing production phase. As
illustrated in the five-year forecast, development review revenues are projected to climb again after 2018-
19.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Property Tax
Property Tax
Projection
($000s)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Transiant Occupancy Tax Projection
($000s)
A-11 Pg. 30
Expenditure Highlights
Operating expenditures are adjusted based on salary and equity adjustments adopted in 2017-18 Fiscal
Year. The operating expenditures financial schedules for the proposed 2018-19 Financial Plan Supplement
budget and the Five-Year Forecast also include the reductions per the Fiscal Health Response Plan.
The forecast for ongoing operating expenditures assumes an escalating growth rate of 5% in Fiscal Year
2018-19, and an average of 1% thereafter to accommodate for inflation, minimum wage increases, changes
to CalPERS contribution rates,
Staffing expense projections include changes to employee salaries based on position salary steps per
position, minimum wage increase, and changes to employment agreements currently known. CalPERS
retirement contribution increases and increases in CalPERS unfunded liability payments have been included
as part of the forecast.
Updated cost allocation figures for 2018-19 have been included in the reimbursement transfers line item
within the General Fund forecast.
Other
The General Fund Five-Year Fiscal Forecast includes in “year one” 2018-19, payment toward Unfunded
Liabilities and a Revenue Stabilization Fund in amounts consistent with the adopted FHRP; the policies
addressing both of these actions are discussed below. Looking further out in the Forecast is the inclusion
of anticipated costs including adjustments to the Cost Allocation plan in the future; the funding of a Capital
Improvement Program Reserve. It should be noted that the forecast shows the City building a considerable
amount of fund balance due to exceeding 20% reserve requirements and any accumulated amounts will
either be invested in a 115-pension trust fund or paid directly to CalPERS to reduce the City’s unfunded
pension liability.
A-12 Pg. 31
General Fund Five Year Forecast
A FY'17 B FY'18 B FY'19 F FY'20 F FY'21 F FY'22 F FY'23
Sales & Use Tax
General 16,737 16,487 17,217 17,413 17,730 18,059 18,407
Public Safety (Prop 172) 406 437 403 406 409 413 416
Measure G 7,332 7,445 7,673 7,748 7,848 7,954 8,062
Property Taxes 10,756 11,145 11,665 12,307 12,922 13,568 13,975
Property Tax In Lieu Of Vlf 4,354 4,638 4,846 5,088 5,343 5,610 5,722
Transient Occupancy Tax 7,368 7,294 7,367 7,551 7,627 7,703 7,780
Utility Users Tax 5,539 5,568 5,617 5,673 5,730 5,787 5,845
Franchise Fees 1,557 1,582 1,527 1,558 1,591 1,623 1,657
Business Tax Certificates 2,372 2,747 2,884 2,971 3,060 3,151 3,246
Real Property Transfer Tax 332 381 388 407 428 449 472
Total Tax & Franchise Revenues 56,753 57,724 59,587 61,123 62,686 64,317 65,581
Fines & Forfeitures 140 148 148 149 151 152 154
Investment and Property Revenues 160 265 265 265 265 265 265
Subventions & Grants 1,015 1,886 386 386 386 386 386
Police Services 621 481 606 618 629 641 654
Fire Services 910 722 990 1,010 1,030 1,051 1,072
Development Review 5,537 6,154 5,870 5,969 6,088 6,210 6,210
Parks & Recreation 1,658 1,822 1,836 1,873 1,910 1,948 1,987
General Government 394 424 431 446 461 476 492
Other Revenues 173 67 118 118 118 118 118
Subtotal Non-Tax Revenues 10,607 11,968 10,649 10,832 11,038 11,247 11,337
Total Revenues 67,360 69,692 70,236 71,955 73,724 75,565 76,918
Salaries 29,001 31,600 32,234 33,175 34,205 35,149 35,852
Overtime 3,604 3,654 2,551 2,602 2,654 2,707 2,761
Subtotal Salaries 32,605 35,254 34,785 35,777 36,858 37,856 38,613
7040: Retirement Contributions 10,301 4,258 4,170 5,118 5,619 5,774 5,890
7049: PERS Unfunded Liability -6,874 10,112 10,416 10,728 11,050 11,381
Other Benefits 2,687 2,962 3,021 3,081 3,143 3,206 3,270
Benefits 12,987 14,094 17,303 18,615 19,490 20,030 20,541
Other (263)(166)(215)(215) (215) (215) (215)
Staffing 45,329 49,182 51,874 54,177 56,134 57,671 58,939
Contract Services 6,958 8,631 9,149 9,332 9,519 9,709 9,903
Other Operating Expenses 8,460 10,650 11,208 11,432 11,661 11,894 12,132
LRM Expenses 2,127 2,522 2,625 2,325 2,354 2,386 2,419
All other 203 102 104 106 109 111 113
Reimbursement Transfers (4,165) (4,135) (3,918) (3,996) (4,076) (4,157) (4,241)
Prior Year Encumbrance Adjustment (ie. Backout from Revised budget)(3,289) (3,289) (3,289) (3,289) (3,289) (3,289)
Subtotal: Expenditures 58,913 63,664 67,753 70,087 72,411 74,324 75,976
Est. Annual Salaries & Benefits Savings (1,268) (1,300) (1,358) (1,407) (1,445) (1,477)
Transfers In (2,110) (5,057) (3,774) (2,377) (2,377) (2,377) (2,377)
Transfers Out 900 --- - - -
Debt Service 3,246 3,245 3,186 2,795 2,391 2,391 2,391
Transfer to CDBG 154 154 154 154 154 154 154
Transfer to Insurance Benefit Fund 1,740 750 500 500 500 500 500
CIP - Fleet Replacement (LRM)-768 624 716 725 735 745
CIP - Infrastructure Investment Fund 250 250 250 250 250
CIP - IT Replacement (GF + LRM)2,621 640 1,136 596 604 612 620
CIP - Major Facility Replacement (LRM)514 675 593 629 637 646 654
CIP - All Other 440 450 214 419 424 430 436
CIP - Measure G (LRM)4,081 3,288 3,875 3,064 3,103 3,145 3,188
Subtotal: Operating Transfers 11,585 3,644 5,457 5,388 5,005 5,040 5,084
Safety Cost Allocation of $200k 200 200 200 200
CIP Reserve (Index to CCI)1,000 1,028 1,057 1,086
FHRP - Operating Reductions and New Revenue (1,472) (3,750) (7,500) (7,500) (7,500)
Total Expenditures 70,498 67,308 71,738 72,926 71,144 73,121 74,847
Resources Over/(Under) Expenses (3,138) 2,384 (1,502) (970) 2,580 2,444 2,071
Fund Balance, Beginning of Year 29,626 26,496 22,392 16,890 12,920 14,499 15,943
CAFR Adjustments 9
Prior Year Restatement
Revenue Stabalization Reserve (Recommendation)(1,000)
Bollard CIP Project (one time monies)(1,288)
Additional CalPERS Principal Payment (4,200) (4,000) (3,000) (1,000) (1,000) (1,000)
Ending Fund Balance 26,496 22,392 16,890 12,920 14,499 15,943 17,014
Designated Reserves (9,697) (3,301)
Policy Reserve Level @ 20%:(10,902) (11,358) (11,528) (11,934) (12,337) (12,655) (12,919)
Reserve Over/(Under) Policy Level 5,897 7,733 5,362 986 2,163 3,288 4,095
A-13 Pg. 32
FISCAL POLICY DIRECTION FUND BALANCES AND RESERVES
With the 2018-19 Supplement staff is proposing several amendments to fiscal policies related to fund
balances and reserves. Those amendments focus on continued efforts to mitigate the impacts of changes in
financial conditions given that they can negatively limit the City’s ability to address its fiscal obligations
related to the unfunded CalPERS liabilities. Stated more plainly, the City has significant annual and future
“balloon” costs that must be made to CalPERS and volatility in revenues and expenditures could have great
impact on the City’s ability to pay these liabilities. The policy amendments proposed are consistent with
the adopted Fiscal Health Response Plan and like the Plan are aimed at achieving long term fiscal
sustainability so that budget reductions do not have to be made on an annual basis to address growing
pension liabilities.
Two new fiscal policies are proposed to mitigate for the impacts of changes in economic conditions and
one addresses minimizing future risks to the City related to pension costs. As noted above, the Five-Year
Fiscal Forecast assumes these changes are made and incorporated into the Forecast. The three specific
topics addressed in the policies include: a proposed revenue stabilization fund to address variances in
revenues; a capital projects reserve to address changes in conditions and costs associated with capital
projects; and a policy to address how allocations should be made toward the unfunded CalPERS liabilities .
Fund Balances and Reserves
Policy Element Revenue Stabilization Capital Project Reserve
Purpose Provide budget stability when
unanticipated fluctuations in
revenues occur.
Meet unexpected financial or
capital project needs due to cost
increases and unforeseen
conditions and urgent
unanticipated projects.
Funding Target Maintain at $1,000,000 during
the term of the FHRP.
Funding at an adequate level as
determined by Council.
Action Required for Use Majority of Council Approval Majority of Council Approval
Authority to Use Reserve City Council City Council
Replenishment of Reserves Funds set aside annually with
adoption of Budget.
Funds set aside annually with
adoption of Budget.
1.General Fund Revenue Stabilization Reserve
As discussed above the General Fund’s largest revenue streams include sales and transient occupancy
taxes. Both of which are based on consumer confidence a the local, state, national, and international
levels. Many externalities can therefore have profound impacts on these revenues. Although it is not
known, and cannot be known, when a recession will occur, predictions are that one will come during
the term of this Forecast given the unprecedented growth experienced at the national and local level.
Additionally, given the uncertainties with projected Cannabis revenues as well as the ability to quickly
increase cost recovery in some areas, and their role as a key component to the Fiscal Health Response
Plan staff is proposing the creation of a revenue stabilization reserve. Council should be familiar with
this as both the Water and Sewer Funds have them for the same purpose – addressing unanticipated
fluctuations in revenues.
The policy for revenue stabilization is proposed to be funded at the targeted amount of $1,000,000
during the term of the Fiscal Health Response Plan given the Plan’s objective to address over a three-
year period the City’s long-term unfunded liability by achieving $8.9 million in operating reductions
so that funds can be set aside for future CalPERS liabilities. Given that overarching objective, the
A-14 Pg. 33
targeted amount at that value has been specified. Staff recommends that Council consider revising that
amount with the adoption of the 2021-23 Financial Plan to determine if a different target amount would
be more consistent moving forward.
It is proposed that the following be added to the City’s adopted Financial Policies section Fund Balance
and Reserves as letter “J”.
J. General Fund Revenue Stabilization Fund. The City will maintain a reserve for
the purposes of offsetting unanticipated fluctuations in general fund revenues to
provide financial stability. The funding target for the Revenue Stabilization Reserve
will be $1,000,000 during the term of the adopted Fiscal Health Response Plan. Use
and allocations of funds of the Revenue Stabilization Fund will be made upon Council
approvals of the Financial Plan or as becomes necessary during any fiscal year.
2.Capital Improvement Project Reserve
The continued investment in the maintenance of City infrastructure is an adopted Council policy. The
Fiscal Health Response Plan acknowledged and accounted for that and included increased investment
in infrastructure and continued maintenance and capital project investment. This is because maintaining
and enhancing the City’s aging infrastructure present capital needs which far exceed available funds.
The City presently plans for capital projects on a five-year timeframe. As projects are designed and
construction begins additional work is often identified due to changes in known conditions or increases
in costs of supplies and equipment.
Staff proposes to amend Fiscal Policy and add a Capital Improvement Projects Reserve with the 2018-
19 Supplement. Use of the Fund wou ld require Council approvals with the Financial Plan or as becomes
necessary during any fiscal year. It will be used for unanticipated costs associated with price escalations
and funding for urgent and unanticipated projects associated with CIP projects including Fleet,
Information Technology, and Major Facility Replacement. Staff recommends beginning funding this
Reserve at the mid-year from year end funding balances associated with completed capital projects.
Future funding would be brought with the adoption of the 2019-21 Financial Plan following the
conclusion of the Funding the Future Prioritization Exercise.
It is proposed that the following be added to the City’s adopted Financial Policies section Fund Balance
and Reserves as letter “K”.
K.Capital Projects Reserve Fund. The City will maintain a reserve for the purposes
of offsetting unanticipated cost increases, unforeseen conditions, and urgent
unanticipated projects to provide continued investment in infrastructure maintenance
and enhancement. Use and allocations of funds from the Capital Projects Reserve
Fund will be made to Capital Projects including Fleet, Information Technology, and
Major Facility Replacement upon Council approvals of the Financial Plan or as
necessary during any fiscal year.
Aggressive Payment of Unfunded Liabilities and Continued Evaluation of Section 115 Trust
Formation
The City’s existing Long-Term Financial Planning Policy provides guidance that priority should be given
to applying long-term unassigned fund-balances to pay down long-term unfunded liabilities. As Council is
aware, the unfunded liability issue that the Fiscal Health Response Plan addresses is one which has added
to the City’s long-term pension obligations. In addition to the City’s “Normal” CalPERS obligations there
is an obligation to also pay “Unfunded Liability Costs”. CalPERS has provided the City its currently
A-15 Pg. 34
anticipated cost based on actuarial assumptions and a 30-year payment schedule which “eases” the City
into payments. It then follows a payment schedule which has years of increased payments with a drop-off
towards the end of the term.
Payment of Unfunded Liabilities
Staff have analyzed paying these costs more aggressively, when possible. During the three years of the
Fiscal Health Response Plan staff recommends paying a total of at least $12 million toward the unfunded
liability. This will be accomplished by paying on a 20-year amortization schedule and including added
payments toward the unfunded liability principal. The Enterprise Funds will contribute their obligations to
the unfunded liabilities at year three of the Plan. Council will approve the additional principal payments at
mid-year by evaluating the recommended amounts arising from the CAFR’s year-end reports. Concurrent
to this effort staff will continue to analyze the impacts of these added principal payments in the outer years
of the obligation as well as the benefits of a Section 115 Trust. By addressing this problem in this way, over
the three years of the Fiscal Health Response Plan, the City will save on reduced interest expense over the
life of the payments, will stabilize its expenditures and will not have to consider reductions every year to
address continued increases to this unfunded liability.
Continued Analysis of a Section 115 Trust
Establishing a pension trust is an option for the General Fund which, as discussed throughout this
Supplement, faces significant demands on its resources and is sensitive to swings in its revenue sources. A
Section 115 Trust once formed can only be used for pension obligations. By paying added principal toward
the unfunded liability staff projects that this obligation can be retired in 20-years. However, during that
time period there may be other reasons to establish a Section 115 Trust including:
•Act as a reserve fund to offset potential volatility in CalPERS annual contribution or rate
requirements.
•Realize higher investment returns than by maintaining monies within the City’s portfolio that is
restricted by State regulations to fixed income instruments.
•Act as a set-aside and available for use in reducing the City’s pension obligations .
Enhanced Policy Language to Continue to Aggressively Address Unfunded Liabilities
It is proposed that the following be added to the City’s adopted Financial Policies section Long-Term
Financial Planning Letter “B”.
In applying unassigned fund balances to pay down long-term unfunded liabilities a two-
part strategy will be used to address the liability to the greatest extent possible. One,
annual payments to CalPERS for unfunded liabilities will address interest and principal.
Two, analysis of a Section 115 Trust as mechanism to address future pension obligations
and uncertainties will continue and a recommendation about formation of the same will
be made during the term of the adopted Fiscal Health Response Plan.
A-16 Pg. 35
UPDATE ON LOCAL REVENUE MEASURE
Local Revenue Measure funding for FY 2018-19 falls into the following nine categories:
Of the total $7.6 million budget, $2.6 million (34%) funds operating expenditures and $5 million (66%) is
for capital projects. This is consistent with a goal of 70% capital and 30% operating expenses for Local
Revenue Measure Funds.
The largest use of Local Revenue Measure funding for operating costs is for public safety. Examples of
these costs are salaries for Downtown Patrol Officers and Fire Prevention personnel. Other operating
expenditures include creek and flood protection staff, code enforcement staff and ranger services staffing.
The largest capital expenditures funded by the local revenue measure in 2017-18 are for Neighborhood
Street Paving, specifically for Laurel Lane reconstruction and resurfacing. Other projects included
playground equip ment replacement, park major maintenance and repairs and pedestrian and bicycle
pathway maintenance.
UPDATE ON 18-19 CAPITAL IMPROVEMENT PLAN PROJECTS
Section G of the 18-19 Supplement contains detailed information on the Capital Improvement Program.
That section includes the following:
1.A narrative summarizing key issues for the 2018-19 Capital Budget
2.The status of the key 2017-18 Capital Projects
4%
8%
5%
24%
35%
4%
9%
11%
Proposed FY 2018-19 Local Revenue Measure Uses ($7.6M)
1. Open Space Preservation
2. Bicycles and Pedestrian
Improvements
3. Traffic Congestion Relief
(Safety Improvements)
4. Public Safety
5. Neighborhood Street Paving
6. Code Enforcement
7. Flood Protection
8. Parks and Recreation/Senior
Programs and Facilities
9. Other Vital Services and Capital
Projects
A-17 Pg. 36
3.A summary of new Capital projects appropriations proposed for addition to the 2018-19 Capital
Budget
4.A summary of proposed changes to the General Fund and other fund allocations to projects in the
2018-19 Capital Program.
The 2018-19 Supplement capital projects are very similar to what was adopted in the 2017-19 Financial
Plan; there are three “new” projects proposed for appropriation as well as a series of project reallocations
to fully fund the Laurel Lane Complete Street project in 2018 -19.
2018-19 “New Projects” Proposed for Appropriation
1.Mid Higuera Bypass Appropriation of Grant Funding. This project is a creek capacity
improvement project between Marsh Street and Madonna Road on San Luis Creek which has been
on-going since 2007. The project has completed the final environmental work and is starting final
design. The CIP request appropriates $376,000 of Zone 9 reimbursement grant funding to allow
this work to continue.
2.Electronic Plan Review Appropriation of Development Services Fees. This project includes
development and implementation of a process for electronic submittal and review for development
services. This CIP request appropriates $59,477 of over -realized Development Services Fees to
implement.
3.Park at 533 Broad Street Neighborhood Appropriation of Previously Designated General
Funds. Presently $740,000 of General Fund monies have been placed in the Parkland Fund to
acquire a park in the North Broad Street neighborhood. Staff and the residents were able to identify
City-owned property at 533 Broad Street, the Broad Street Community Gardens, could be just right
for a Park in this neighborhood. Included in this CIP is design and construction of a Park. 2018-19
would see project scoping and design and construction is anticipated in 2020-21. The project
funding appropriation for 2018-19 includes only design funds ($75,000). Future construction funds
are would be appropriated as part of the 2019-21 Financial Plan with better understanding of the
construction costs.
Reallocations of Existing Funds to Fund the Laurel Lane Complete Streets Project
The funding revisions of multiple capital projects are proposed to fund the Complete Streets project on
Laurel Lane. Several projects are proposed to be reduced or eliminated in 2018-19 to accomplish this
priority project. The projects selected for reduction or elimination are those which staff believes will be
delayed in 18-19, have traditionally had an allocation of new funding each year, or have some other
mitigating factor. There is one project from 2017-18 that has not expended its full budget and that is
included as a reallocation as well. The project reallocations discussed more specifically in the CIP Section
of this document can be summarized in the table below.
A-18 Pg. 37
Additional Funding for Laurel Lane Complete Streets Project
Project 2018-19 Project Reallocations
1. Mission Plaza Railing Upgrade $30,000
2. Storm Drain System Replacements $317,100
3. Parks and Recreation Interior Office Rehabilitation $61,000
4. Laguna Lake Dredging $200,000
5. Bike Facilities Improvement $25,000
2017-18 Project Reallocation
6. Downtown Renewal $160,000
Total $793,100
Funding the Infrastructure Investment Fund
With this Supplement $250,000 is proposed to be allocated to the Infrastructure Investment Fund and is
also projected to be funded in the Five-Year Fiscal Forecast. This Fund is being established, funded, and
used for funding infrastructure projects that contribute to improved economic development and enhanced
quality of life in San Luis Obispo. The criteria for evaluation of such projects are defined in the adopted
policy for this fund. No project is identified to be funded a t this time from this Fund; rather the allocation
is intended to develop a funding source for qualified projects in the future.
Highlighting Key Capital-related policy issues for the upcoming 2019-21 Capital Budget
As part of the Major City Goal of Fiscal Sustainability and Responsibility significant work has been
completed regarding infrastructure financing. That work effort has been referenced as Funding the Future
of SLO. The development of Funding the Future of SLO resulted in a different lens for viewing the City’s
Capital Program. Pr ojects in future Financial Plans will be classified as either, 1) Maintaining Existing
Infrastructure, 2) Enhancement of Existing Infrastructure, or 3) New Projects.
Funding the Future of SLO presented the Council with a 20-year Capital Project list. This list, totaling
$418,000,000 in General Fund dollars over twenty years, was derived from adopted policies and planning
documents. Those include the Land Use and Circulation Element, the Bicycle Transportation Plan, the
Mission Plaza Concept Plan, and several others. In addition, costs were estimated for implementation of
planning efforts currently underway, such as the Parks and Recreation Element and Master Plan presently
under update.
In addition to the reviewing the Funding the Future of SLO Initiative, the Council adopted the Capital
Facilities Financing Plan (CFFP), also known as the AB 1600 Project list with associated Impact Fees. One
conclusion of the AB 1600 process, confirmed in Funding the Future of SLO, is that there are significant
General Fund capital obligations for projects related to development. These capital obligations exceed
current General Fund resources for capital projects.
Noted below are future topics of discussion for Council from Funding the Future of SLO and the AB 1600
decisions with direction to be provided with 2019-21 Financial Plan
1.A project plan for Funding the Future of SLO project prioritization including public engagement,
project prioritization, and funding options and timing.
2.Use of the following categories: Maintenance of Existing Infrastructure, Enhancement of Existing
Infrastructure, and New Projects.
3.Identify a process for prioritizing and funding AB 1600 projects which are partnership projects.
A-19 Pg. 38
ENTERPRISE FUNDS
WATER FUND
The Water Division is responsible for securing and protecting the commu nity’s surface and ground water
supplies, treating water to meet stringent water quality standards, and safely distributing it to the
community. Distributing recycled water is an important function of this division. Maintaining complex
infrastructure including a dam, multiple tanks, and pressure zones will soon be assisted by the installation
of sophisticated monitoring equipment on pumps, tanks, and special valves that will allow for remote access
and control of these systems. This project is nearing completion.
After one of the most severe drought periods experienced in history, rain filled the reservoirs in the winter
of 2016-17 and, while the community remains vigilant with its water efficiency efforts, strict conservation
restrictions were lifted. After the restrictions were lifted, average water use increased about eight percent;
still twelve percent under water used before the drought conservation mandates were enacted. Cost
increases associated with the drought, coupled with decreased revenues associated with mandatory
conservation actions, created a financial strain on the Water Fund. As an enterprise fund, the Water Fund
finances its operation solely from rates and fees assessed for delivering water service. T he proposed rate
structure and rates, if adopted, will add increased long-range stability and predictability to revenues and
rates and are necessary to meet future infrastructure funding needs. Due to the uncertainty and volatility of
the current conditions related to water use and how the commu nity will respond to the proposed rate
structure, only one year of rates have been developed (historically, two years are proposed)
Fiscal Health Response Plan Strategy - Water Fund
As the understanding of the cost of water deliveries from the Nacimiento Project matures, the Water Fund
will reduce its budget for pumping charges by $100,000 in fiscal year 2018-19; year one of the Fiscal Health
Response Plan. It will be responsible to meet its operating cost reduction target of $542,000 in three years.
Through an unprecedented water meter replacement program, it is also expected to receive additional water
sales revenue amounting to $100,000 annually.
Fiscal
Year
Fund Program Reduction Type Amount
2019 Water Source of Supply Pumping Charges $100,000
SEWER FUND
The Wastewater Division is responsible for collecting wastewater from businesses and residences and
transporting it to the Water Resource Recovery Facility where it is treated to high standards for reuse in the
creek system and as an irrigation water source. Additionally, biosolids and energy are recovered for
beneficial reuse. Protection of the wastewater system its workers, and the environment is provided through
the Environmental Programs group in compliance with the federal pretreatment program. The Water
Quality Laboratory team provides citywide services related to water quality studies, data, test ing, and
analysis to ensure appropriate regulatory compliance and operational decision-making. Operating,
maintaining, and installing and/or r eplacing the hundreds of millions of dollars of wastewater infrastructure
assets is the responsibility of this entire group of professionals.
The impacts of the drought and the associated strict conservation mandates were physically impactful to
the Sewer Fund, the wastewater conveyance system and the treatment processes. The lack of water to move
the waste through the conveyance system and the impacts of the reduced water on the treatment processes
A-20 Pg. 39
required extraordinary process changes and operations and maintenance efforts to maintain compliance
with public health requirements. In order to remain on track to have sufficient revenue to pay the future
debt service, maintain capital infrastructure funding needs, and ensure future fiscal stability, the proposed
rate structure and rates are necessary for continued fiscal health. As an enterprise fund, the Sewer Fund
finances its operation solely from rates and fees assessed for delivering water service.
Fiscal Health Response Plan Strategy – Sewer Fund
Through the results of its energy efficiency project and process changes, the Sewer Fund will reduce
chemical and electrical expenses by $80,000 in FY 2018-19; year one of the City’s Fiscal Health Response
Plan. It will be responsible to meet its target of $540,000 in three years.
Through an unprecedented water meter replacement program, it is also expected to receive additional sewer
charges revenue amounting to $20,000 annually.
PARKING FUND
The Parking Fund is responsible for the management of the City’s on-street and off-street parking
including the three parking structures, the residential parking permit program and parking enforcement.
The Fund’s 5-Year forecast continues to project a positive position each year with a required 20%
reserve balance each year. Consistent with previously adopted policies, the forecast assumes a
conservative overall growth in revenues due to increased usage of the parking resources and programs.
The forecast reflects the rate increases approved by Council starting in the 2018 and additional increases
continuing each year thereafter thru FY20-21.
The forecast assumes an overall decrease in ongoing Expenditures in FY18-19 with the adoption of the
FHRP. The City and the Enterprise Funds are analyzing the possibility of some of the Funds paying their
entire balance of the unfunded CalPERS liability as a one-time payment but have not made a final
determination. The Parking Fund is including a one-time payment of $328,381 in FY18-19 as a principal
payment in addition to the annual UAL contributions which is consistent with the plan for the General
Fund and all Enterprise Funds. This action will reduce the overall liability and is projected to achieve
significant savings over the next 30 years.
Fiscal Health Response Plan Strategy - Parking Fund
In addition to the revenue achieved through rate and fine increases and projected employee concessions,
the Fund will also be reducing the annual contracted services budget by $10,000 beginning in fiscal year
2018-19; year one of the Fiscal Health Response Plan. Additional cost reductions will be brought forward
in the 2019-21 Financial Plan, if necessary, to meet the Fund’s annual operating cost reduction target of
$175,000 by 2021-22.
Fiscal Year Fund Reduction Type Amount
2019 Parking Contract Services $10,000
Fiscal Year Fund Program Reduction Type Amount
2019 Sewer WRRF Chemical Charges $30,000
2019 Sewer WRRF Electricity Charges $50,000
TOTAL: $80,000
A-21 Pg. 40
TRANSIT FUND
The City of San Luis Obispo’s Transit Fund operate SLO Transit which provides local fixed route transit
services for residents, employees, students and visitors to the area. A wide range of users continue to
receive services, including the: transit-dependent, elderly, disabled, students and commuters.
This forecast looks at key issues and trends which could have an impact on the overall health of the fund.
In this regard, staff is pleased to report that the Transit Fund remains balanced, and the 2017 -18 budget is
consistent with operating assumptions adopted in the 2017-19 Financial Plan, despite the impacts from of
the pension liability. However, capital projects, such as fleet replacement, will continue to be highly
dependent on grant funds. Otherwise, the fund is healthy, and the assumptions have been updated based
upon the following approved changes.
The Transit Enterprise Fund will be making additional UAL principal payments to the sum of $79,628
over the next 3-year period, in addition to the annual UAL contributions which is consistent with the plan
for the General Fund and all Enterprise Funds. Furthermore, this option is the only allowable method for
the Transit Fund to participate in (it may not participate in a Trust due to Federal Funding Rul es) and is
compliant with State and Federal funding stipulations for expenses of this nature.
Fiscal Health Response Plan Strategy – Transit Fund
In addition to any revenue achieved through rate increases or grants and projected employee concessions,
the Fund will also be reducing the annual fuel budget by $35,000 beginning in fiscal year 2018-19; year
one of the Fiscal Health Response Plan. Additional cost reductions will be brought forward in the 2019-
21 Financial Plan, if necessary, to meet the Fund’s annual operating cost reduction target of $42,438 by
2021-22.
Fiscal Year Fund Reduction Type Amount
2019 Transit Fuel $35,000
CONCLUSION
The 2018-19 Financial Plan Supplemental Budget presents a balanced budget aligned with the City’s
adopted financial policies. It is based on continued prudent estimates of revenue and expenditures over the
next year. Five Year Fiscal Forecasts for both the General Fund and Enterprise Funds are based on
conservative revenue assumptions, considering normal variability in the funds revenue streams and close
examination and analysis of known operating and capital expenditures.
The proposed budget directly responds to the Council’s adopted Fiscal Health Response Plan with operating
and expenditure reductions that minimize service level impacts and are achievable in 2018-19. Major City
Goals and Other Important Objectives continue to be addressed as top budget priorities and the resources
allocated toward them are unchanged. The Supplement also addresses the Council’s objective of addressing
the long-term unfunded liabilities associated with the CalPERS pension by aggressively allocating funds
toward paying down pension this liability while at the same time investing in capital and equipment
infrastructure.
The 2018-19 Financial Plan Supplemental Budget is aligned with the previously adopted two-year, 2017-
19 Financial Plan with reductions in operating expenditures consistent with the adopted Fiscal Health
Response Plan.
A-22 Pg. 41
Acknowledgements
Preparation of the Financial Plan Supplement is a team effort involving the efforts of a wide variety of City
employees including department heads, analysts, fiscal officers, and key staff from Finance. There are
special review groups including the Fiscal Health Response Plan Steering Committee, Capital
Improvement Program Review Committee and a Budget Review Team. My appreciation to each and every
team member for their time, effort, and thoughtful consideration given.
A-23 Pg. 42
SECTION B: MCG/OIO/PERFORMANCE MEASURES
The fundamental purpose of
the City’s Financial Plan is to
link what the City wants to
accomplish over its 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. The purpose of this summary is to provide
an estimate of progress as of June 20, 2017.
2017-19 MCG ACTION HIGHLIGHTS 2018
Housing 44% 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.
As of January 2018, the Affordable Housing Fund has a balance of approximately $1.75 million.
The City continued to implement the Inclusionary Housing Requirement throughout 2017, and has
over 10 Affordability Agreements in process through long -term and equity-share programs.
Pursuant to the ongoing zoning regulations update, staff worked closely with the consultant to add
workforce housing as an income category in the City’s Zoning Regulations and Affordable
Housing Standards. Staff began working with key community stakeholders to develop the
resulting workforce housing ordina nce, aimed for preliminary review in 2018. Discussion
regarding the feasibility and incorporation of smaller housing units to facilitate more affordable
options, was also completed alongside the zoning regulations update.
Major City Goals (MCG)
•Housing
•Multi-Modal
Transportation
•Climate Action
•Fiscal Sustainability &
Responsibility
Other Important
Objectives (OIO)
•Downtown Vitality
B-1 Pg. 43
Multi-Modal Transportation 40% Complete
Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range
Transit Plan.
Several critical projects were advanced and/or completed thus far in 2018, including: The Calle
Joaquin Park and Ride lot opened for service in February 2018. This is the first Park and Ride lot
in the City. The City is now working with ReCarGo, the California Energy Commission vendor
for the US 101 corridor, to implement EV charging stations in a portion of the lot.
SLO Transit has continued to adjust services based upon input from riders and community
members. SLO Transit was recognized as Outstanding Transportation Agency by the California
Association of Coordinated Transit providers is. The award recognized the City’s update and
modernization of its fleet. Additionally, the American Public Works Association (APWA) also
recognized this project as a Project of The Year for 2017-18.
Traffic safety projects continue to be implemented. The signal upgrade at Monterey/Osos is
substantially complete and the sidewalk at 1005 Monterey Street has been repaired and a trip
hazard eliminated. The Annual Traffic Safety Report for calendar year 2016 was presented to
Council on February 6, 2018; reported injury collisions in 2016 were the second lowest in the 16
years of the program. Overall reported collisions were the lowest ever recorded in the program’s
history.
The Anholm Neighborhood Bike project received approval by Council on February 6, 2018 and
was modified on April 10, 2018 with final direction to staff. Design of Phase 1 of the project has
commenced, and construction of the proje ct is anticipated in Winter 2018. Right of Way
negotiations with the LDS Church are underway.
The Caltrans Project Study Report (PSR) for the Prado Road Interchange was approved in April
2018. The next stage of Caltrans processing – environmental and final project approval- will now
commence.
There are a number of time sensitive grant projects that staff is working on. These include the
Railroad Safety Trail – Taft to Pepper, Mid Higuera Widening, the Prado Ro ad Bridge and Santa
Fe Bridge replacement projects and the Tank Farm/Orcutt Road Roundabout. Some projects, such
as minor NTM projects are being delayed in order to meet these deadlines and not endanger grant
funding.
Climate Action 40% 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.
The City hired a Sustainability Manager, effective March 8, 2018. Since being hired, the
Sustainability Manager has been re-forming the Green Team and supporting the Climate Coalition
Task Force as staff liaison. Staff has been working on scoping the climate action plan update,
which will include a GHG emissions update and operationalization of the net zero carbon city
t arget and is expected to be completed in in Summer 2019.
B-2 Pg. 44
Staff has worked to create sustainability incentive programs through support of the development
of a green business program for local businesses, the SLO Green Challeng e website for residents,
and by working in collaboration with regional partners.
In April 2018, staff received a biennial facility ener gy benchmarking report and is pursuing energy
efficiency lighting audits. Staff is also pursuing the siting of solar on City facilities. In addition,
Utilities received approval from the City Council in April of 2018 to complete investment grade
audits for energy efficiency projects.
In Spring 2018, staff began participating in two electric vehicle charging programs, whic h could
bring over 40 electric vehicles chargers to the City for public and fleet uses. These programs would
be funded through licensing fees or utility program incentives. In April o f 2018, the City received
confirmation from the City of Morro Bay of intent to participate in the Community Cho ice Energy
(CCE) program. In May of 2018, City Council approved release of a request-for-proposals (RFP)
for technical energy services for the purpose of developing and operating a CCE program. The
selected proposer is expected to be under contract in July of 2018.
Fiscal Sustainability & Responsibility 50% Complete
Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic
development and responsiveness, unfunded liabilities, and infrastructure financing.
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
adopted by Council on April 17, 2018. The Fiscal Health Response Plan has been applied to the
2018-19 Budget resulting in operational reductions that have minimal service level impacts and
are achievable in 2018-19.
Staff conducted a 10-year review of t he General Fund’s Capital Improvement needs. The project
list identified the cost of maintaining existing infrastructure, enhancing existing infrastructure, or
building new projects. It was determined through Measure G there is sufficient to maintain existing
infrastructure it is not for enhancing existing infrastructure. Initial findings were presented to
Council on January 16, 2018. Staff conducted additional project analysis based on Council
direction. This review resulted in a Funding the Future of SLO initiative, twenty years of capital
projects which fulfill the city’s vision as articulated in various planning documents. In additions,
staff completed an initial public engagement process and a financial summary. Council reviewed
this information on April 14, 2018. Council provided direction for additional public engagement
and project review to be included in the 19-21 Financial Plan.
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. Cali fornia 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.
B-3 Pg. 45
2017-19 OTHER IMPORTANT OBJECTIVES ACTION HIGHLIGHTS 2018
Downtown Vitality 50% 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 Winter
2019.
Planning work for the Downtown Concept Plan and Mission Plaza Concept Plan is complete.
Implementation of portions of the Mission Plaza Concept Plan will commence in the summer of
2018.
The Community Action Team and Bicycle Patrols continue to maintain public safety by focusing
efforts in addressing chronic offenders and evening patrols within the downtown. Continued
coordination with the Downtown Association to educate the community on homelessness issues
is underway. Police Department coordination with the County of San Luis Obispo to expanded
mental Health Services is underway. The County has award a contract to Transitions Mental
Health Association for services and a Memorandum of Understanding is currently under
development between the City and Transitions Mental Health Association to help address transient
mental health needs. An increased percentage of calls for service due to homelessness issues has
been identified by the Police Department . In April 2018 the Police Department designated one of
the sergeant positions as the Downtown sergeant and will focus on addressing the needs and crimes
within the City’s downtown.
NEXT REVIEW The next review of the 2017-19 Major City Goals and Other Important
Objectives will occur at midway through 2018-19. Individual items requiring policy direction
and/or Council approval will continue to be brought to Council fo r consideration and direction.
B-4 Pg. 46
TASK AND STATUS REPORTS
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 6/2019
The Affordable Housing Nexus Study was
delayed in order to complete the Capital
Facilities Fee Program Nexus Study, which
was adopted by Council in April 2018. Staff
is currently preparing a Request for Proposals
(RFP) for the Affordable Housing Nexus
Study and anticipates that a consultant will be
selected in Fall 2018, with the Affordable
Nexus Study being completed in June 2019.
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 6/2019
An Administrative Draft Workforce Housing
Program is currently under staff review and
will be available for community and
stakeholder review in Summer 2018.
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 6/2019
An Administrative Draft Workforce Housing
Program is currently under staff review, and
will be available for community and
stakeholder review in Summer 2018.
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, but may require further
amendment following the results of the
Affordable Housing Nexus Study.
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 Ongoing A list of applicable properties is maintained
and periodically 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, regardless of lot size, when other property
development standards, such as parking, height
limits and setbacks can be met.
6/2019 12/2018
A list of applicable properties was identified
and inventoried. They will be evaluated
further following the completion of the
Zoning Regulations Update and the
Subdivision Regulations Update.
B-5 Pg. 47
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
A list of applicable properties was identified
and inventoried. They will be evaluated
further following the completion of 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 4/2018
The transportation component of the Capital
Facilities Fee Program and the Water and
Wastewater Development Impact Fee
Program include tiered impact fees based on
unit size and type (e.g., single family vs.
multifamily). Additional tiering may be
recommended as a result of the Affordable
Housing Nexus Study.
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. The recently adopted
Capital Facilities Fee Program and Water and
Wastewater Development Impact Fee
Program include tiered development impact
fees to incentivize the development of smaller
residential units. Additional tiering may be
recommended as a result of the Affordable
Housing Nexus Study.
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
Ongoing work effort, and a formal
streamlining process or program may be
implemented through the adoption of a
Workforce Housing Ordinance
12 Continue to implement Housing Element programs
and housing production goals. Ongoing
Ongoing work effort, which is supported by
the recent adoption of the Capital Facilities
Fee Program and the Water and Wastewater
Development Impact Fee Program, and the
Accessory Dwelling Unit Ordinance. This
work effort will continue to be supported
through the Zoning Regulations Update, the
Subdivision Regulations Update, the
Workforce Housing Ordinance, and the
Affordable Housing Nexus Study.
13 Provide timely building permit review and
inspections for new housing developments. Ongoing
Ongoing work effort, the Community
Development Department is continuously
looking for ways to improve and expedite the
building permit review and inspection process
for new housing development. The
implementation of E-Plan check should
improve efficiency and reduce cost to
developers.
14
Support employer/employee and employer/developer
financing programs and partnerships to increase
housing opportunities specifically targeted towards
the local workforce.
Ongoing
Ongoing work effort. Staff is currently
working with People’s Self Help Housing of
San Luis Obispo and local employers to
develop a housing project that would be
targeted towards producing housing
specifically for the local workforce.
15
Continue the City’s participation with the Workforce
Housing Coalition, San Luis Obispo County
Housing Trust Fund to identify, evaluate, and
Ongoing
Ongoing work effort. City Staff participate
and attend the meetings of the Workforce
Housing Coalition and the San Luis Obispo
B-6 Pg. 48
implement strategies to increase the production of
housing.
County Housing Trust Fund in an effort to
identify opportunities for collaboration to
achieve common goals and objectives
associated with the continued development of
housing in the City.
16 CAP TLU 8.1: Improve the City’s jobs-housing
balance to reduce VMT from commuting. Ongoing
Ongoing work effort. The City is
continuously looking for opportunities to
support and facilitate the production of
housing, especially transit-oriented
development and infill development near
employment, shopping and recreation centers.
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
Ongoing work effort. Incentives that increase
residential densities above state density
bonuses for projects that provide targeted
housing for low, very low and extremely low-
income households are encouraged and are
evaluated on a project by project basis. The
completion of the Affordable Housing Nexus
Study may provide the City with some
additional tools to further support this
ongoing work effort.
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
Ongoing work effort. The recently adopted
Downtown Concept Plan and the Zoning
Regulations Update encourage and /or
provide for the continued creation of
residential dwelling units in the Downtown
Core and the Downtown Planning Area.
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
Ongoing work effort. New Development
projects are reviewed for compliance with all
applicable City regulations and developers
are encouraged to provide projects that will
result in a wide variety of housing types for
all income levels.
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
Ongoing work effort. The recently approved
Specific Plans for San Luis Ranch and Avila
Ranch included a mix of residential zoning
and land use designations, including land
specifically zoned for R-3 and R-4 densities
to accommodate the development of rental
and for-sale residential development products
for extremely low, very-low and low-income
households.
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
Ongoing work effort. City staff are
continuously seeking opportunities to work
with our regional partners to identify
opportunities for the development of housing.
The City is currently working with Cal Poly
to facilitate the development of their
proposed workforce housing project at the
corner of Grand and Slack.
22
CAP TLU 8.2: Support infill housing projects that
implement General Plan policies, especially BMR
housing close to job opportunities.
Ongoing
Ongoing work effort. City staff continues to
work with developers, non-profits, and our
regional partners to implement infill housing
development that is consistent with General
B-7 Pg. 49
Plan policies and the Housing Major City
Goal.
Multimodal Transportation: 2017-19 Action Plan
Objective: Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short -Range Transit Plan.
1 Task Completion
Date Revised Status
1 Begin Construction of Railroad Safety Trail – Taft to
Pepper. 3/2019
Right of way acquisition underway, Council
Closed Session held in March; 60% plan set
approved by UPRR. Completing final design
for submittal to UPRR
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 been
acquired and construction delay is anticipated.
4 Begin construction of 1st phase of the Broad Street
Bike Blvd. 8/2018 01/2019
Council adopted plan on February 5th and
again updated project on February 20th and
April 10th. Phase 1 under design with
construction intended for winter 2018.
Negotiations with LDS for right of way
underway. Construction tentatively scheduled
for January 2019 due to additional time
constraints of Council direction for
neighborhood meetings and revisions to Phase
II of project.
5 Implement Minor Bicycle Facility Improvements. Ongoing
Additional green and buffered bike lane
improvements are planned as a component of
the neighborhood Roadway Sealing project in
summer 2018.
6 Broad Street Corridor Access Improvements. 6/2019
South Broad improvements are included as a
need in the Funding the Future of SLO
discussion. RFP for design to be circulated in
June 2018.
7 Complete Pedestrian & Bikeway Maintenance. Ongoing Meadow Park Pathway work anticipated to
start construction in fall 2019.
8 Complete Sidewalk Replacements & New
Installations. Ongoing
Locations are currently undergoing design
and coordination with Tree Committee and
adjacent property owners, including 686
Higuera where Tree Committee recently
approved removal of a Ficus tree for sidewalk
replacement.
9 Complete New Streetlight Installations. Ongoing Scheduled 1st installation for end of 2018.
10 Construct Safe Routes to School: Foothill X-Ing
Project. Ongoing Foothill/Ferrini crossing and Class I Path in
design. Construction targeted Winter 2018--
B-8 Pg. 50
pending right-of-way agreement with LDS
Church which is underway.
11 Begin Bicycle Transportation Plan update to Active
Transportation Plan. 1/2018 Ongoing Consultant has been selected and work will
commence.
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 This will be consolidated into the Active
Transportation Plan.
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 Report.
15 Implement revised routes and schedules for Short
Range Transit Plan. 7/2017 Complete Staff continues to monitor and adjust routes
for service delivery.
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
underway.
17
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 reconsidered.
18 Begin construction of Higuera Street Widening –
Elks to Chumash Village. 9/2018 3/2019 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 FY 2019-20. State
funding delays.
20 Complete Caltrans’ PAED (environmental) process
for the Prado Road Interchange. 6/2019
PSR approved by Caltrans in April work now
able to commence. Supplemental EIR being
prepared for modified project description for
SLO Ranch project.
21 Continue Traffic Safety & Operations Programs. Ongoing
2016 Report approved by Council in February
2018, with future projects to be included in
future Financial Plans. 2017 Report is
scheduled for 4th Quarter 2018.
22 Implement 2015 Traffic Safety Report Projects. 6/2019
Signal at Monterey/Osos is complete. Long
term projects such as Laurel Lane and
California/Taft for 2019.
23 Construct of California & Taft Roundabout. 6/2019
Design is 65% complete. Grant funding
needed for construction which may delay
construction start.
24 Complete Design of Tank Farm & Orcutt
Roundabout. 6/2018 10/2018 Design underway.
25 Complete Bridge Maintenance Projects. Ongoing 2/2019 Preventative bridge maintenance project work
was rescoped to complete major maintenance
B-9 Pg. 51
work on El Capitan Pedestrian and Bike
Bridge. This project is currently under design
with an estimated start of construction in
Winter 2018 pending successful appropriation
of construction funds.
26 Complete Street Reconstruction & Resurfacing. Ongoing
Concrete Streets and Accessibility
Improvements project on Dana Street opened
for bids in April and is scheduled to begin
construction in June. The neighborhood
Roadway Sealing and Laurel Lane Complete
Streets project is anticipated to start
construction in summer 2018.
27 Continue to support multimodal infrastructure
installation and upgrade thru new development. Ongoing
Every new development project reviewed by
Transportation staff includes reference to the
current Bicycle Transportation Plan projects
and city multimodal objectives. Significant
work being done on Avila Ranch, SLO Ranch
and OASP developments for infrastructure
installation.
28
Continue implementation of the City’s
Neighborhood Traffic Calming Program at reduced
level from prior years.
Ongoing
The NTM program has been impacted due to
addition of Farmer’s Market Safety project
and processing of the Anholm Neighborhood
Bikeway project. Minor NTM will continue to
move forward but major projects will be
delayed.
29 Continue Traffic Signs and Striping maintenance. Ongoing Late winter 2018.
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 Complete
The position of Sustainability Manager was
filled in March 2018. Work has restarted on
creating a green team and supporting a
Community Climate Action Coalition.
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. c. Feasibility analysis and implementation
of a Community Choice Energy Program
6/2018 6/2019
Climate Action Plan Update will address and
is to be completed in June 2019. Council
provided direction to staff to pursue a
Community Choice Energy (CCE) Program
in December of 2017. RFP for technical and
energy services to start the CCE program and
has coordinated with the City of Morro Bay
to create a joint power authority (JPA) to
operate the program.
B-10 Pg. 52
3 Updating the Climate Action Plan. 12/2018 6/2019
In May 2018, CDD and Administration
completed a scope and schedule for the
Climate Action Plan, to be completed by
June 2019.
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 7/2018
As part of the Climate Action Plan update,
staff will re-evaluate the GHG emissions
reductions measures identified in the existing
planning document. For municipal energy
efficiency measures, the Sustainability
Manager is coordinating with Public Works
to evaluate feasibility of on-bill financing of
design build concept for energy projects
5 Updating the City’s GHG emissions inventory. 6/2018 8/2018
A community and municipal operations
GHG inventory is expected to be completed
in August 2018.
6
Biennial reporting on the effectiveness of individual
climate action adaptation and GHG emission
reduction strategies.
5/2019 6/2019 The biennial report will be developed as part
of the Climate Action Plan update.
7
Ongoing accountability and monitoring of the
effectiveness and progress for all CAP
implementation strategies and measures.
6/2019
The Climate Action Plan update will be
developed to integrate accountability and
monitoring processes into measure
implementation.
8 Development of enhanced incentive programs. 6/2019
Staff has supported creation of regional
incentive support programs, including: SLO
Green Business Program (lead by Cuesta
College), slogreenchallenge.org, an online
platform to support access and participation
in existing residential incentive programs. In
April 2018 the California Public Utilities
Commission approved creation of a Regional
Energy Network for Santa Barbara, Ventura,
and San Luis Obispo Counties to provide
enhanced residential energy efficiency
incentives.
9 Performance of energy assessments/audits on all
City-owned facilities. 3/2018 7/2019
Performance assessments complete.
Comprehensive audits are pending a defined
funding source.
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
Lighting retrofits are potential projects
pending a defined funding source. Additional
efforts to site solar renewable energy systems
on City facilities to lower energy costs are
also underway. City Hall HVAC scheduled
for replacement with a more energy efficient
unit.
11 Monitoring and measuring of City-owned facility
and infrastructure performance. 8/2018 7/2019
Comprehensive audit of minor, or secondary
infrastructure pending input from
stakeholders.
12 Preparation of an Energy Baseline Report and Rate
Analysis for City-owned facilities and infrastructure. 3/2019 Ongoing
Comprehensive audit of minor, or secondary
infrastructure pending input from
stakeholders.
B-11 Pg. 53
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 Fall 2018
The City is working to fill the Economic
Development Manager position who will
lead the effort to update 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 continues to advocate for
and actively participate in the process to
approve SB 1090.
3 Complete an update of the City’s Development
Impact Fee Program (AB 1600). Winter 2018 Complete Adopted March 2018.
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
All hiring and travel expenditures require
case by case approval to maximize
expenditure savings.
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
Complete
A statistically valid survey was completed in
March 2018. Internal and external
communications and presentations were
provided leading up to the April 2018
adoption of the Fiscal Health Response Plan.
Staff will continue to engage and educate
the community through Fall 2018 leading to
the General Election regarding information
on any 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
Complete
April 17,
2018
Council adopted the Fiscal Health Response
Plan on April 17, 2018. This plan presents a
framework to address the budget imbalance
arising from unfunded liabilities associated
with CalPERS the City’s retirement
investment system. It does so with a
balanced approach over a three-year period
13 Implement Plastic Straw Regulations. 10/2017 Complete Implementation is ongoing.
14 Implement Plastic Bottle Regulations. 4/2018 Complete Implementation is ongoing.
B-12 Pg. 54
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
and includes revenue options, operating
expenditure reductions and new ways of
doing business and, as well as shared
employee responsibility for concessions.
Upon the adoption of the Plan, Council
provided strategic budget direction to inform
the 2018-19 Supplemental Budget and the
Plan will guide the 2019-21 Financial Plan.
9 Return with Strategic Budget Direction for 2018-
2019. Spring 2018 Complete
Council provided direction on April 17,
2018 with adoption of the Fiscal Health
Response Plan.
10 Implement Fee Study changes and maintain fees
consistent with Council policies on cost recovery. Ongoing
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 December
2018
Staff continues to advocate for and actively
participate in the process to approve SB
1090. The bill is currently in committees.
Staff is also working on options with the
Coalition of Cities and other partners to fun d
the study.
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-term
structurally balanced fiscal outlook.
Spring 2018 Complete
Staff presented recommendations on April
17, 2018 with Fiscal Health Response Plan
adoption.
15 Implement operating cost reductions consistent
with adopted 2018-19 budget.
Through
Summer
2019
Ongoing
The proposed 2018-19 Supplemental Budget
contains operating reductions, new ways of
doing business and new revenues.
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 adopted Fiscal Health Response Plan
focuses on alternative ways of doing
business to reduce cost while minimizing
service level impacts. Savings will be
achieved through refinancing of debt and
early pay-down of unfunded liabilities. New
ways of doing business focused on using
B-13 Pg. 55
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
less consumable goods and increasing
sustainability are included in the Budget
Supplement as are thoughtful Departmental
Reorganizations which have minimal
service level impacts. The Motion project
is currently in the implementation phase.
Functionality will be implemented in three
rollouts. Finance and Purchasing functions
are planned to be rolled out in October 2018,
HR and Payroll in April 2019 and
Budgeting & Planning in October 2019.
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 Complete
Council reviewed and approved in open
session the Labor Relations Objectives
(LRO) on March 20, 2018. The LRO will
guide labor negotiations with employee
groups.
19
Monitor liability self-insured/excess insurance
program and explore options with CJPIA to control
workers’ compensation costs.
Ongoing
The liability self-insured/excess-insurance
program continues to project savings of
approximately $500,000 over the primary
insurance pool. However, an analysis of
workers’ compensation claims indicates
moving to the excess insurance program
would likely cost the City more than the
primary insurance pool. Both liability and
workers compensation claims are closely
monitored, and short and long-term cost
containment strategies are being
implemented.
20
Develop a policy to address the funding status of
volatile insurance programs (liability, workers’
compensation). Evaluate the purpose and use of the
Insurance Benefit Fund to lessen the financial
impacts of the fluctuations in insurance costs.
Spring 2018 Complete
As part of 2017-19 Financial Plan
development, the Council adopted fiscal
policy for the Insurance Benefit Fund and
Self-Insured Liability Program. 2017-18 is
the first fiscal year managing the fund under
th is policy direction and no changes are
being recommended. Staff will continue 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
The liability program is on track to reduce
liability claims by 10% in the first year (FY
2016-17), but it is too early to estimate
whether a 20% reduction will be achieved in
the current claim year (FY 2017-18), due to
the time it takes for claims to mature. Based
on the number and severity of workers
B-14 Pg. 56
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
compensation claims, it appears the first
year (FY 2016-17) claim costs will not
achieve the 10% reduction goal. Year two
(FY 2017-18) claim year will not close until
June, so it is premature to estimate whether
the 20% reduction will be achieved.
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 June 2018
Integrated the new asset management
system with the City’s fueling system to
improve tracking of fuel costs, use and
needs of each department. Investments in
hybrid technology on specific vehicles to
gain fuel economy, reduce carbon
footprint/GHG emissions and meet City
sustainability goals. Outfitting high usage
vehicles such as Police Patrol vehicles with
anti-idling systems and specifying work
trucks with engine idle shutdown features
when possible to reduce fuel costs,
emissions output, and engine wear and tear.
Transit is reviewing recent State Zero
Emission Vehicle (ZEV) mandates and will
be developing an Electrification/ZEV
implementation Plan for systemwide vehicle
conversion. Update to the replacement
policies anticipated for June 2018 to allow
4-6 months use of new asset management
system.
24
Develop a contingency plan to address potential
additional changes to long-term unfunded CalPERS
and OPEB liabilities.
Spring 2018 June 2018
Plans for addressing long-term unfunded
liabilities will be presented to Council in
Spring/Summer 2018.
25 Make recommendation for allocation of one-time
funds. Ongoing Mid-Year 2017-18 allocations were made.
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 Complete
Staff has developed 10-Year CIP addressing
these funding needs and presented to
Council in January 2018. The 10 Year list
also included ‘Partnership Projects’
identified in the AB 1600 work described
above. The project review resulted in the
Funding the Future of SLO initiative. In
April Council directed staff to include
public engagement and additional project
analysis in the 19-21 Financial Plan.
B-15 Pg. 57
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 Complete
Staff is in process of establishing CFDs for
San Luis Ranch and Avila Ranch
development projects. AB 1600 fee study
updated and adopted by Council. In April
2018 Council reviewed long-term Capital
Improvement Program funding needs.
28 Explore expanding utility fees to include storm
water activities. Spring 2019
Staff is analyzing the Stormwater program
and recommendations for revenue
generating options to recoup the costs
associated with this unfunded mandate.
29
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 Fall 2019
Environmental Impact Report (EIR) will be
presented to Council in summer 2018 for
review and approval. Design work is planned
to commence thereafter.
2
Construct next phase of Downtown Renewal capital
improvement project focused on the 800 block of
Higuera Street.
Spring
2018
Winter
2019
Project is planned to start construction in
January 2019 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
Progress is pending additional funding and
coordination with development activity north
of the existing downtown core.
4 Design of the Mission Plaza Concept Plan -
Mission Plaza Restroom Replacement.
Spring
2019
Summer
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 Maintenance of downtown trees, sidewalk
scrubbing, and street sweeping is ongoing.
6 Begin construction of Marsh Street Bridge
replacement at the southern gateway to Downtown.
Spring
2019
Pending completion of right-of-way phase,
authorization to advertise for construction
bids will be requested of Caltrans with an
B-16 Pg. 58
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
anticipated start of construction in Spring
2019.
7
Assist noncompliant properties to achieve
compliance with the Downtown Fire Sprinkler
Ordinance.
Winter
2018
The fire department continues to assist
noncompliant properties to achieve
compliance with the Downtown Fire
Sprinkler Ordinance.
8 Continued operation of the Community Action
Team (CAT) in Downtown. Ongoing
The Community Action Team continues to
focus on addressing chronic offenders within
the downtown. Additionally, they continue to
work with City Rangers on open space
violations and postings. Hiring for the
Mental Health position with CAT and
Transitions Mental Health Association
(TMHA) is just complete.
9 Continued Downtown Bicycle Patrol. Ongoing
The police department continues to deploy
two bicycle officers during the day evenings.
Transient related issues continue to be a
priority for the bike officers. An increase in
the number of calls involving the homeless
population, related to the total number of
calls for service has occurred.
10
Coordination between the Police Department and
County of San Luis Obispo to achieve expanded
mental Health Services focused on Downtown.
Ongoing
The County awarded the contract to TMHA
and it is hiring the selected candidate. The
City Attorney is working with the Police
Department to complete an MOU between
the City and TMHA related to this position.
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 to maintain
trespassing letters on file for local business.
In April the Police Department designated
one of the sergeant positions as the
Downtown sergeant. This position will be a
2-year position that will focus on addressing
the needs and crimes within the City’s
downtown.
12 Council and community review and consideration
of Downtown Concept Plan.
Summer
2017 Complete
13 Council and community review and consideration
of Mission Plaza Master Plan. Fall 2017 Complete
14 Following adoption, oversee the implementation of
the Downtown Concept Plan. Ongoing
15
Following adoption, develop a phasing and
resources needs plan for the implementation of the
Mission Plaza Concept Plan.
Summer
2018
Summer
2019
A budget request to implement the first phase
of work, will follow the design.
B-17 Pg. 59
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
16 Complete the City’s Zoning Regulations Update. Summer
2018 8/2018
A Council Study Session was held April 10,
2018, a Public Workshop in May, and
Planning Commission hearings in June, and
Council hearing will occur in August 2018.
17 Complete a Feasibility Study for the Upper
Monterey Area Plan Parking District.
Summer
2019
On April 10, 2018, Council authorized an
interim part of this study (Upper Monterey to
the RR) as part of the Zoning Regulations
Update to allow downtown development
standards in this area with Planning
Commission approval. This interim step will
be completed in August 2018.
18 Complete a Feasibility Study of Downtown
Maintenance District.
Summer
2019
The Downtown Association elected to take a
pause in the process to form a Property Based
Improvement District pending more outreach
with Downtown Property Owners.
19
Coordinate, in partnership with the Downtown
Association, exploration of opportunities to provide
enhanced maintenance or other services to maintain
Downtown vitality.
Ongoing
A consultant was hired to analyze and present
recommendations for a property-based
business improvement district. Initial
recommendations were presented to
Downtown and SLO and key stakeholders in
March 2018. It was determined that the
continued refinement and outreach should
take place over the next year before moving
forward.
20 Design Farmer’s Market Safety Project and
circulate for bids 11/2018
Project approved by Council as part of
Mid-Year budget. Bid package under
design for circulation in winter 2018.
B-18 Pg. 60
PERFORMANCE MEASURES
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: City Administration
SUMMARY
The City Administration Department performance and workload measures selected are illustrative of the work the
department does to ensure connectivity in the organization and community as well as meeting our stated goals. They
include specific targets for network connectivity, community satisfaction with public engagement and the effectiveness
of our economic development efforts.
PERFORMANCE MEASURES
Measure/Explanation Target
2017-18
Actual
2017-18
Target
2018-19
Maintain City Network Reliability Uptime Status 99.9% 99.995% 99.9%
The Information Technology Division strives to provide a reliable and highly available data network to connect city staff
to information and technology solutions. The indicator is expressed as the percent of uptime each year that the City's
core network is online and available 99.999% of the time (no more than 8 hours per year of unscheduled and
uncontrollable downtime).
Measure/Explanation Target
2017-18
Actual
2017-18
Target
2018-19
Open City Hall Participant Satisfaction Rating 90% 92% 90%
Open City Hall is the City's main online platform for civic engagement. A variety of topics are regularly posted, and
each member of the public is asked to complete a brief satisfaction survey regarding their experience using the tool.
Regular use of Open City Hall by both the staff and public is a cost-effective way to increase engagement. The current
satisfaction rating is 92% and the City aims to maintain at least a 90% rating for 2017 -18 and 2018-19.
Measure/Explanation Target
2017-18
Actual
2017-18
Target
2018-19
Amount of Sales and Transient Occupancy Tax $32,272,000 $31,686,000 $33,056,000
Increase the amount of sales and transient occupancy tax received by the City from $31,589,000 in 2015 -16 to
$33,056,000 by 2018-19, reflecting a 4.6% total increase and a 2.2% and 2.5% increase per year respectively through
various economic development efforts. These figures are aligned with the City's five-year forecast and will change
accordingly.
* This amount is based upon 2017-18 projections. Actuals for 2017-18 will be presented to the City Council as part of
the 2018-19 Mid-Year Budget.
ADMINISTRATION WORKLOAD MEASURES
Measure 2015-16 2016-17 2017-18 2018-19
City facilities receiving IT support 30 31 31 31
Data backed-up in Gigabytes 17,455 34,910 78,200 78,200
Number of Geographic Information System layers maintained 850 860 905 905
Contacts with businesses regarding starting, expanding and staying
in the City
X X 25 25
Open space acquisitions / dedications and conservation plans 3 2 2 2
Promotional contracts administered 20 20 40 40
Regular and special Council Meetings held 36 36 36 36
City Manager Reports reviewed 192 220 230 240
Council agenda reports processed 252 300 300 300
Community partnership contracts administered 12 12 13 13
B-19 Pg. 61
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: City Attorney
SUMMARY
The City Attorney's Office addresses a high volume of legal service needs, varying from responding to questions and
information requests from the community; conducting complex legal research and providing legal advice to City
Council, Commissions and City Staff; reviewing City Manager and Council Agenda Reports, contracts and
development agreements; managing claims, appeals, and litigation; and attending meetings to give guidance to the
Council and staff on legal issues, across multiple practice areas. Service requests and demands are unique, rather than
uniform and recurring, in nature, which makes quantifying the office's efficiency and productivity within a metric
framework difficult. Below are a few of the measures that reflect how staff time is spent in service to the organization
and the community.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Documents Turned-around Within 4 Days 65% 72% 70%
Documents routed through the City Attorney's Office for review and signature are many and varied; by the time a paper
copy reaches the desk of one of our attorneys they have usually participated in its negotiation and/or drafting and,
therefore, are ensuring the final version reflects the intent of the City Council, City Manager, or staff and that the form
of agreements protect the City's interests. Allowing for occasional delays outside our control, a document delivered to
our office should leave in route for final signature within four days. In past fiscal years, approximately 60% of
documents have met this four-day goal.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Administrative Citation Appeal Process Completed Within 70
Days
80% 63% 85%
Administrative Citations written for violations of the City's Municipal Code will occasionally result in an appeal being
filed. The process is coordinated by City staff but relies entirely on volunteer hearing officers to review the appeals and
issue decis ions. It is the goal of this office to make the appeals process as efficient as possible for all those involved and
measure that efficiency by the time between when a request for appeal is received and when a decision on that appeal is
mailed. The process should take 70 days or less. Currently about 80% of appeals meet this goal. Appeals that were
rejected or otherwise resolved outside the appeal process are not included in this measure.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Claims Against the City Resulting in Litigation 5% 7% 5%
Through active management of liability claims filed against the City, it is the objective of the City Attorney's Office
and Human Resources Risk Management that very few will result in litigation or judgments against the City. It is
therefore the goal each year to maintain a level of less than 5% of all claims received by the City being litigated.
Historically, this rate has been less than 1%.
ATTORNEY WORKLOAD MEASURES
2018/19 SUPPLEMENTAL
BUDGET
Measure 2015-16 2016-17 2017-18* 2018-19
Civil Litigation Cases Pending 9 8 6* 7
Multi-count Municipal Code Violation
Complaints Filed
16 33 40* 30
Liability Claims Against the City Reviewed 83 99 54* 90
Resolutions/Ordinances Reviewed 99 90 76* 100
Public Records Requests Received by the City 141 279 267* 275
Administrative Citation Appeals Received by the
City
X 216 137* 175
*Count through April 2018
B-20 Pg. 62
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Community Development
SUMMARY
Our mission is to serve all persons in a positive and courteous manner and help ensure that San Luis Obispo continues
to be a healthy, safe, attractive, and enjoyable place to live, work, or visit. The performance measures listed below
relate to some of our most important activities, including development review, affordable housing, and neighborhood
wellness. During the 2017-19 Financial Plan period, the Community Development Department will be focusing on
process improvements so that it can continue to meet or exceed the community's service level expectations in a
constrained fiscal environment.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-18 Target
2018-19
Percent of Development Review activities completed within
established cycle times.
75% 71% 70%
Meeting established cycle times for development projects is a crucial part of the development review process.
Applications, plans and inspections are reviewed or conducted by multiple divisions of the City. Processing delays have
negative effects on the applicant's budgets, project management and customer experience. Data gathered by this
measure helps determine if additional resources are needed to meet cycle times or to assess established cycle time's
viability. The target goal of meeting cycle times on 75% (Yr. 1) to 70% (Yr. 2) of all development review activities is
based on assumptions that some projects will be more complex, development review activities will be extremely high,
and resources will be limited. In an effort to maintain fiscal sustainabi lity, the Community Development Department
has programed an 11% reduction in operating cost in FY 2017-18 and an additional 8% reduction in FY 2018-19. It will
be imperative to prioritize process improvement identification and implementation in the first y ear of the financial plan
to obtain the targets set within this measure.
Measure/Explanation Target
2017-18
Actual 2017-18 Target
2018-19
Affordable Housing Units Constructed 24 Units
Added
38 Units Added 56 Units
Added
Community Development leads the Housing Major City Goal that focuses on the increased production of housing
affordable to a range of income levels including the creation of a "workforce" affordability level, while ensuring
conformance with the City's Clima te Action Plan objectives to promote sustainable growth. According to the City's
Regional Housing Needs Allocation, the City is to provide 464 Extremely Low, Very Low, and Low Income
Affordable Housing units by June 30, 2019. Currently, the City has produc ed 90 units in these categories during the
current RHNA period that began in June 2014, or approximately 4 per month. Based on current entitlements and
applications in progress, it appears that the City will be able to support the addition of 80 additional affordable homes
for these income types during the 17/19 Financial Plan period.
Measure/Explanation Target
2017-18
Actual 2017-18 Target
2018-19
Code Enforcement Response Within Established Timelines 80% 82% 80%
Code enforcement response times include three tiers based on the level of potential impact to life/health safety that the
violation presents. Health and safety violations are given the highest priority while violations of 'general welfare' rules,
such as zoning, are second tier. Property maintenance violations (Neighborhood Enhancement Ordinance) are
considered third tier from a life/safety perspective. Neighborhood Wellness is unique in that it also involves proactive
patrols to implement City objectives. This performance measure assesses the performance of the Code Enforcement
Division with respect to response time to complaints received. The standards are: FIRST TIER - 24 Hours: SECOND
TIER - 2 Days: Third Tier - 3-5 Days
B-21 Pg. 63
COMMUNITY DEVELOPMENT WORKLOAD MEASURES
2018/19 SUPPLEMENTAL
BUDGET
Measure 2015-
16
2016-17 2017-18 2018-19
Number of Development Review
Applications Processed/Within cycle time
N/A 967/831 800/600 750/525
Engineering Development Review Apps
Processed/Within Cycle Times
N/A 27/15 40/30 40/28
Building Permit Apps Processed/Within
Cycle Times
N/A 734/339 750/563 800/560
Inspections Conducted/Conducted next day N/A 4525/4029 4600/4000 4600/4000
Enforcement Cases Reported/ Responded
Within Cycle Times
N/A 587/456 600/480 600/510
1Affordable Housing Units Constructed
(Cumulative)
88 90 114 170
B-22 Pg. 64
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Finance
SUMMARY
The Finance department is responsible for safeguarding the City's resources and fiscal health. Finance department
implements financial policies, plans and reporting systems to serve the citizens and enable operating departments achieve
their objectives. The measures below were created to align with the Finance Department's mission by measuring the quality
of financial reporting, implementation of fiscal policies, and the Department's ability to serve citizens and enable operating
departments achieve their objectives.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-
19
Receive the Government Finance Officers Association
Distinguished Budget and CAFR Award
Yes No Yes
The Government Finance Officers Association (GFOA) issues the Certificate of Achievement for Excellence in Financial
Reporting (CAFR) and the Distinguished Budget Preparation Award to recognize local governments that go beyond the
minimum requirements of generally accepted accounting principles when prepar ing comprehensive annual financial
reports, that provide full disclosure of financial status to the public, and that prepare budget documents of the very highes t
quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the
GFOA’s best practices on budgeting. The last time the City applied for this award was for fiscal year 2015. The City will
apply for this award going forward.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-
19
Meet Budget and Fiscal Policy Fund Balance Requirements 100% 100% 100%
Through semi-annual reporting to the City Council, ensure that the City is meeting all budget and fiscal policy adopted fund
balance requirements.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-
19
Meet all Federal, State, and City Charter Reporting
Requirements
100% 100% 100%
Provide accurate and timely financial reporting data as required to Federal and State entities as well as to the City Council
as required by the City Charter.
FINANCE WORKLOAD MEASURES
2018/19 SUPPLEMENTAL BUDGET
Measure 2015-16 2016-17 2017-18 2018-19
Business Tax Certificates Issued 8,127 8,176 8,180 8,180
Payroll Checks and Direct Deposits 14,500 14,824 15,000 15,000
Vendor Invoices Processed 25,500 27,200 27,500 27,500
Accounts Payable Checks 8,264 8,774 8,774 8,774
W-2's Issued 766 807 807 807
1099's Issued 117 127 137 137
Journal Entries Processed 1,611 1,575 1,550 1,550
Budget Amendment Requests Processed 280 274 277 277
B-23 Pg. 65
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Fire
SUMMARY
The Fire Department is responsible for protecting life and property by responding to medical emergencies, fires, hazardous
materials incidents and other emergencies as well as for promoting public safety through fire prevention programs including
commercial property inspections, plan review and fire sprinkler and fire alarm systems. Performance Measure Targets and
workload measures were determined by current funding and staffing levels.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-
18
Actual 2017-18 Target 2018-19
Meet the Total Response Time (TRT) goal as defined
by General Plan Safety Element of 7 minutes or less to
90% of all lights-and-siren emergencies in the City.
90% 83.5% 90%
Total Response Time is calculated from the time of 911 pick-up in the City's Emergency Communication Center until arrival
of the first Fire Department personnel at the scene. For serious medical emergencies and fires of all types, rapid arrival at the
scene impacts outcomes. The time standard established in the General Plan Safety Element are reflective of the guidance
standards of the National Fire Protection Association (NFPA). Circumstances impacting this aspiratio nal measure include:
City growth, increased 911 calls for service, traffic, and non-emergency crew duties (such as training, fire prevention
activities, and public educations events).
Measure/Explanation Target 2017-
18
Actual 2017-18 Target 2018-19
Maximize property saved from fire damage 85% 65.9% 85%
The Fire Department's ability to extinguish fires to prevent further property damage is one of its primary goals. The ability to
accomplish this goal is influenced by many factors. Elements of minimiz ing property loss by fires include public education,
fire prevention inspections, code enforcement, development plan review, reduction of fire hazards and fire department
response times. The target goal of 85% will be measure by overall property value saved versus property value loss. In 2015-
16 the amount saved was 85.5% and 2016-17 was 82.5%. The 2017-18 property saved dropped to 66% due to the complete
loss of a large commercial structure.
Measure/Explanation Target 2017-
18
Actual 2017-18 Target 2018-19
Percentage of Fire Department Development Review
activities completed within published cycle times
80% 65.3% 50%
Customer service is an essential component of public service. Meeting published cycle times for Development projects is a
crucial part of the development review process. Applications, plans and inspections are reviewed or conducted by multiple
divisions of the City. Processing delays have negative effects on the applicant's budgets, project management and customer
experience. Data gathered by this measure helps determine if additional resources are needed to meet cycle times or to
assess published cycle times viability. The target goal of meeting cycle times on 80% of all development review activities is
based on assumptions that some projects will be more complex, development review activities will be extremely high, and
resources will be limited. In 2018-19, as a result of decreased funding for contract plan review services the target is reduced
to 50%. The 2017-18 percentage fell below target due to increased demand and an unplanned fire prevention staff vacancy
for 6 months.
B-24 Pg. 66
FIRE WORKLOAD MEASURES
2018/19 SUPPLEMENTAL BUDGET
Measure 2015-16 2016-17 2017-18 2018-19
Fire Incidents (National Fire
Incident Reporting System
(NFIRS) 100 series) *
167 162 167 172
Rescue and Medical Services
(NFIRS 300 series) *
3769 3635 3744 3856
Total Fire Responses* 5877 5920 6097 6280
Fire and Safety Inspections 1260 1267 1275 1287
Building Plan and Development
Plan Reviews
773 802 800 820
Emergency Response Personnel
Average Training Hours*
189 150 160 170
Disaster Preparedness Programs
Provided
- - 30 35
Out of County Mutual Aid billing 40 41 32 32
*Calendar year: 2015, 2016, 2017, 2018
B-25 Pg. 67
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Human Resources
SUMMARY
The mission of the Human Resources Department is helping employees realize their full potential, so they can effectively
serve our community. The Human Resources performance measures include objectives such as on-time employee
performance evaluations, int ernal employee promotions and reducing liability and workers compensation claims.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-
18
Target 2018-
19
Percentage of On-time Employee Performance Evaluations 90% 86% 95%
The Human Resources Department will work with other departments to increase the percentage of on-time performance
evaluations delivered to employees. Currently the City has 84% of performance evaluations completed on -time.
Performance evaluations increas e communication between a supervisor and employee, reiterate all the hard work and
performance feedback provided during the evaluation period, and can be a motivational tool to the employee.
Measure/Explanation Target 2017-18 Actual 2017-
18
Target 2018-
19
Percentage of Internal Promotions 38% 55% 38%
The Employment Opportunity Program (EOP) is designed to give current employees a window of opportunity to apply for
and possibly transfer or promote into another classification when there is a vacancy prior to the start of an outside
recruitment. This program supports succession planning opportunities for all employees, including regular (non-
probationary), contract and supplemental employees. Hiring internally has many benefits, some of which are: It promotes a
Healthy and Smart Organization, it saves money in recruitment costs, retains high quality trained employees dedicated to
serving the community, proven loyalty to the organization and community, seamless transition to new duties, and it is a
synergistic fit for team culture. Currently internal promoti ons at the City have averaged 38% over the past five years with a
goal of continuing at that same rate going forward.
Measure/Explanation Target 2017-18 Actual 2017-
18
Target 2018-
19
Reduction in Liability and Workers Compensation Claims -10% -31% -20%
The Human Resources Department will work with other departments to reduce losses associated with the City’s worker’s
compensation and liability programs. This program will facilitate the implementation of several loss control strategies to
reach the end goal of a 30% reduction of losses in these two programs over the span of three years. Improvements on
employee safety and decreasing liability claims will lead to reduced costs. Reducing employee work -related injuries and
illnesses also reduces the stress, strain, lost time, and discomfort of employees, thus positively impacting productivity and
morale. This performance measure will use the current five-year averages to set benchmarks in reducing claim numbers
and claim costs by 30% in 3 years. For workers' compensation the goal is to reduce the claim count from 56 (a 5-year
average) to 43 claims severity from an annual total of $1. 3M to $1M and total annual loss days from 697 to 536. For
liability, the goal is reduced the claim count from 41 (a 5-year average) to 32 and claims severity from an annual total of
$465,000 to $360,000.
*This performance measure will only take into account liability claims that incurred monetary losses
1 The Liability program should achieve the 10% reduction and a weighted average reflects a 3% reduction to the budget for both
programs.
B-26 Pg. 68
HUMAN RESOURCES WORKLOAD MEASURES
2018/19 SUPPLEMENTAL
BUDGET
Measure/Explanation 2015-16 2016-17 2017-18 2018-19
Recruitments - Regular and
Supplemental
80 80 70 70
Labor relations activity 39 45 40 40
Applications screened 3650 2600 3000 3000
Training sessions coordinated 32 31 31 31
Classification, compensation and benefit
analysis
149 48 45 45
Liability Claims Filed 92 79 72 65
Workers Compensation Claims Filed 58 52 47 43
Fitness Assessment Participants 23 20 22 22
Employee Assistance Program
Participants
100 100 110 110
B-27 Pg. 69
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Parks and Recreation
SUMMARY
The Parks and Recreation Department's mission is: Inspiring happiness by creating community through people, parks,
programs, and open space. The measures below align with the Department's mission, measuring both number of people
served through programs, events, facilities, and trails maintained; as well as the number of volunteers who help make this
programming successful.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Maintain and Enhance Parks and Recreation Participation 337,315 337,923 337,900
The Parks and Recreation Department offers a wide variety of diverse programs that appeal to the community. The target
goal will be to maintain the number of participants, currently 337,315, and enhance their experience in Parks and Recreation
programs, events and facility visits. Programming is currently at capacity throughout the majority of the divisions in Parks
and Recreation.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Increase Number of Volunteers in Parks and Recreation Number Pending
12- month use of
services
970 3%
The Parks and Recreation Department strives to maximize the use of volunteers Department -wide, with each Division
identifying its own needs. The City's new volunteer software program, CERVIS Technologies, will provide streamlined
access for Parks and Recreation Staff and Volunteers. In year one, Parks and Recreation will establish the number of
volunteers, and increase by 3% in year two.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Miles of Trails Maintained in the City Open Space 53 Miles 55 miles 55 Miles
The City has 53 miles of trails that Ranger Service staff and volunteers, maintain, manage, and patrol in addition to its cre ek
corridors. Over the two-year budget cycle, the Ranger staff will build out and increase trails from 53 to 55 miles. They
protect the City's natural resources by completing maintenance, rehabilitation and patrol of the open space. Daily the Rangers
visit 25 trailheads, inspect 7-8 miles of creek corridor and maintain the 4,000 acres of open space.
PARKS AND RECREATION WORKLOAD MEASURES
2018/19 SUPPLEMENTAL BUDGET
Measure 2015-16 2016-17 2017-18 2018-19
Youth Service Participants 795 795 1,250 1,200
Adult/Youth Sports Participants 1,695 1,695 *
Not incl
Adult
Softball
Teams
4,069 4,000
Triathlon Participants 1,000 975 1,000 1,000
Golf Rounds Played 30,508 28,800 25,383 28,000
Contract Class Participants 994 1,050 865 1100
Pool Users 68,400 86,000 92,159 93,000
Facilities Attendance 218,000 218,000 218,000 218,000
Special Events Permitted 85 93 87 90
Seniors Programming 260 300 300 300
Jack House & PRC Meetings 24 24 22 22
B-28 Pg. 70
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Police
SUMMARY
The mission of the Police Department is to maintain a safe city by working in partnership with the community to protect life
and property, prevent and reduce crime, and improve the quality of life in our neighborhoods. The Police Department's
performance measures include objectives such as crime reduction, community outreach, and fiscal sustainability.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Crime Reduction -5% -13% -14%
The Police Department will work to reduce Part 1 Crime (defined as crimes against persons) by 5% as compared to FY
2016-17. Methods for reaching this goal include; utilizing a crime analyst position, rapid deployment of resources, increased
social media, lowest level problem solving ta ctics and accountability, and utilizing intelligence led policing.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Increased Community Outreach Programs 5 6 7
The Police Department has created several new outreach opportunities and will work to increase outreach to enhance
relationships between the community and the department by adding one new program per year. Some examples of outreach
include; PEACE discussions (Police Education and Community Engagement), the creation of a PACT (Police and
Community Together) group which consists of a diverse representation from the community and Police Officer liaisons,
Neighborhood Officer Program and the Roundtable. The i ncrease will be in the form of new outreach, not previously
measured.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Fiscal Health & Sustainability - Overtime Reduction -2,000 Hours +1,300 Hours -2,000 Hours
The Police Department will work to reduce overtime by 2,000 hours. Focused areas of possible overtime reduction will
include report writing, utilizing officers (already on duty) from other assignments to cover shortages in Patrol, and
reassessing non-mandated training occurrences. Overtime went up this year to cover for vacant positions and the Police
Department will still meet budgetary goals.
POLICE WORKLOAD MEASURES
2018/19 SUPPLEMENTAL
BUDGET
Measure 2015-16 2016-17 2017-18 2018-19
Noise Complaints Received by
Dispatch
2,106 1,950 1,900 1,900
Citations Issued 6,876 6,662 7,622 7,860
DUI Arrests 411 362 400 400
Police Calls for Service 38,300 39,480 40,664 41,884
Felony Offenses 1,188 1,212 1,248 1,285
Total Arrests 3,026 3,351 3,451 3,554
Phone calls received in the
Communications Center
96,818 84,970 90,000 90,000
Property/Evidence Booked 7,435 7,665 7,800 7,900
Cases assigned for investigation 479 489 500 500
Public Records Requests Filled 49 78 80 80
B-29 Pg. 71
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Public Works
SUMMARY
The mission of the City of San Luis Obispo Public Works Department is to preserve and enhance city infrastructure for an
accessible, safe and inclusive community experience. These Performance Measures are intended to monitor one or more
aspects of that mission.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Increase the number of work orders for proactive preventive
maintenance of city assets
5% annual
increase
1% Increase 5% annual
increase
Increasing the percentage of total preventive work orders completed by staff in the areas of parks, city facilities, and
streets maintenance. Preventive work orders prolong the city's existing infrastructure and city assets while reducing the
risk of larger, more expensive projects in the future.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Enhance traffic safety for all modes of transportation A) 3%
B) 2%,
C) 2%
A) 5.3%
B) 4.2%
C) 10.6%
A) 3%
B) 2%
C) 2%
Reduce traffic collisions: A) vehicle to vehicle, B) vehicle to bicycle, C) vehicle to pedestrian. Percentage amounts shown
represent the reduction in collisions comparing the most recently completed Traffic Safety Report with the prio r year
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Percentage of capital projects constructed in the budgeted year 85% 50% 85%
Target completion of projects funded to construct improvements or maintain assets to 85% within the two-year financial
plan. The goal of 85% takes into account unforeseen challenges such as obtaining permits and agreements from third
parties, unforeseen field conditions, weather, etc.
PUBLIC WORKS WORKLOAD MEASURES
2018/19 SUPPLEMENTAL
BUDGET
Measure 2015-16 2016-17 2017-18 2018-19
Total acreage of park inventory 540 550 550 570
Street miles maintained 197 197 197 197
Total transit riders 1,209,708 1,198,000 1,221,960 1,234,180
Total number of public parking
spaces in the Downtown core
2,647 2,492 2,492 2,413
Internal service assets - Square
feet of City facilities/total City
fleet
221,176/296 221,176/320 221,176/320 221,176/320
Pavement Condition Index (PCI) 74 71 70 72
Total trench repairs 45 160 78 78
Bicycle Network; Class 1/2/3 in
total miles
7.2/29.7/24 7.5/29.7/24 7.5/29.7/24 8.0/30.45/24
Total trees in the Urban Forest
(public right of way/parks)
13,000/6,000 13,000/6,000 13,000/6,000 13,000/6,000
Corrugated Metal Pipe in Storm
System
22% 22% 21% 20%
B-30 Pg. 72
DEPARTMENT PERFORMANCE AND WORKLOAD MEASURES
Department: Utilities
SUMMARY
The City of San Luis Obispo Utilities Department provides essential services that support the community’s health, well-
being, and quality of life. Through its efforts, water for the community is safely transported, prepared, distributed, used,
collected, treated and beneficially reused 365 days a year, 24 hours -a-day. Long range planning for water resources and
infrastructure needs, environmental stewardship and business management required to provide these vital services are
critical functions of the Utilities Department.
PERFORMANCE MEASURES
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Drinking Water Compliance Rate (% Days) 100% 100% 100%
Utilities compliance with the drinking water quality standards in effect for the Water Treatment Facility. The indicator is
expressed as the percent of time each year that the water treatment facility is in full compliance with applicable drinking
water quality requirements.
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Wastewater Treatment Effectiveness Rate (% Days) 100% 99% 100%
Utilities compliance with the effluent quality standards and national pollutant discharge elimination system (NPDES) permit
for the Water Resource Recovery Facility. The indicator is expressed as the percent of time each year that the water
treatment facility is in full compliance with applicable drinking water quality requirements.
Meet Budget and Fiscal Policy Fund Balance
Requirements
Measure/Explanation Target 2017-18 Actual 2017-18 Target 2018-19
Capital Improvement Projects Completion 100% 75% 100%
Utilities Department’s progress in the 2017-19 approved capital improvement project plan. The indicator is expressed in the
number of projects being on track to be completed during the 2017-19 Financial Plan.
UTILITIES WORKLOAD MEASURES
2018/19 SUPPLEMENTAL
BUDGET
Measure 2015-16 2016-17 2017-18 2018-19
Total Regulatory Inspections
Performed
3,268 3,197 3,634 3,643
Hours of Regulatory Compliance
Training
1,820 1,920 1,920 1,920
Public Education tours/events 89 95 111 111
Regulatory Reporting 805 820 815 815
One Water delivered (acre feet) 5,909 5,983 6,050 6,220
B-31 Pg. 73
Last Updated: April 9, 2018
PLAN PURPOSE
The purpose of this plan is to establish a three -year framework to respond to the long-
term fiscal impacts of the significant increases in required pension contributions to the
CalPERS retirement system. This plan is a specific deliverable and is structured in a
manner to provide guidance for budgetary actions in the 2018 -2019 Fiscal Year as well
as to provide broad strategic budget direction for the 2019-2021 Financial Plan.
THE PROBLEM
The City of San Luis Obispo and the other
3,000-member agencies in the California
Public Employees Retirement System
(CalPERS), are facing significant increases
in required pension contributions. The City's
annual CalPERS costs are projected to more
than double in ten years; growing from $7.8
million in 2014-15 to $19 million in 2024-25
for the General Fund. These costs will
continue to grow through 2031-32 and affect
all funds including the City's Enterprise
Funds (Water, Waste Water, Transit, and
Parking).
To addresses these rapidly rising costs, the
City must address an $8.9 million ($7.5
million from the General Fund and $1.4
million from the Enterprise Funds) budget
gap over the next three fiscal years (2018-
19, 2019-20, and 2020-21). The size of the
problem has been informed using fiscal
forecasting supported by third party
economic models, as well as the City's
outside sales tax advisor and a separate
actuary who specializes in pensions.
The City's fiscal forecasting is based on
assumptions such as:
1. Continuing current levels of service.
2. Continuing the commitment to capital
investment including a slight increase
due to ongoing maintenance needs.
3. Modest long-term revenue growth and
inflation.
4. Continuing Local Revenue Measure
(Measure G) funds.
5. Enterprise Funds revenue projections
based on approved and historic rates and
revenue growth trends.
The City must continue to utilize CalPERS as its
retirement system as it is not feasible for the City
to leave without incurring significant costs. To
exit CalPERS, the City would have 30 days to
meet its projected (worst case) financial
obligations estimated to be from $377 to $495
million at the time of separation. Furthermore,
the current legal framework in California restricts
cities ability to reduce retirement benefits for
current employees, as well as retirees. Lastly,
CalPERS forbids offering alternative retirement
benefits for new employees, different from those
reduced benefits that already have been
legislatively authorized.
C-1 Pg. 74
Last Updated: April 9, 2018
GENERAL FUND FOCUS; ENTERPRISE
FUND PARTICIPATION
This Plan is primarily focused on guiding
the General Fund closure of the ongoing
budget gap over the next three fiscal
years.
The Enterprise Funds (Water, Sewer,
Parking, and Transit) are also participating
because the problem of rising pension costs
also affects employees of the Enterprise
Funds as they participate in the same
CalPERS retirement system as General
Fund employees. Each fund, however, will
solve the problem based on the fund type
and its unique situation, as discussed later in
this report.
KEY CITY POLICIES AND GUIDING
PRINCIPLES FOR THIS PLAN
• The City’s existing financial policies
provide the foundation for this Plan and
include a balanced, sustainable budget
based on conservative investment practices
and diversified revenues.
• Specific policies which support this Plan
include: the 2001 Fiscal Health Contingency
Plan, the 2014 Financial Responsibility
Philosophy, the Compensation Philosophy
and the 2017 Long-Term Liabilities and
Maintenance of Infrastructure.
• Ongoing Fiscal Health Monitoring
including modeling of economic trends and
incorporation of new data will occur through
the budgetary process and three years of this
Plan.
• Budgetary changes in response to the Plan
will minimize service level impacts.
• Budgetary reductions will be implementable
and monitored during the three years of the
Plan.
• Sustainability principles will be
incorporated into changes in the ways the City
“does business” where possible.
• Capital Improvement Project investment
will not be diminished in the General Fund
and is projected to increase slightly during the
Plan’s effective period.
• The City’s Organizational values will be
considered when evaluating budgetary
reductions so that employees, programs,
departments, and the organization can
continue to support and implement these
values.
• The maintenance of facilities, infrastructure,
and equipment will continue, and reductions
will have the least amount of maintenance
impacts as possible.
• The application of unassigned fund-balance
due to one-time expenditure savings or one-
time increase in revenue will continue to be
applied to paying down long-term unfunded
liabilities and investment in infrastructure
and/or critical equipment.
• Ongoing increases in revenue will be
carefully evaluated and will also be
considered as a means to speed up the
paydown of unfunded liabilities. The City will
carefully evaluate the tradeoffs of expanding or
adding new programs, rather than paying down
unfunded liabilities.
• The City will work closely with its elected
representatives and others (including the
League of California Cities) in ongoing efforts
to address long-term changes to the CalPERS
system.
C-2 Pg. 75
Last Updated: April 9, 2018
INTEGRATION OF THE PLAN WITH THE FINANCIAL PLANNING PROCESS
The Fiscal Health Response Plan will be applied to the 2018-19 Budget Supplement as well
to the 2019-21 Financial Plan process. The 2019-21 Financial Plan will include Major City Goals
informed by public participation. However, the Fiscal Health Response Plan sets forth the
framework by which the 2019-21 will need to close the structural budget gap of $8.9 million over
the term of this Plan.
For ease of use, and so that Council and the community can review the implementation of this
Plan with respect to solving this problem, this document will be updated with a record of Council
meetings regarding the Plan’s implementation.
Council Meeting Date Action Related to FHRP Taken
April 17, 2018
1. Adoption of FHRP
2. Strategic Budget Direction for 2018-19 Budget Supplement
To be completed as meetings
occur.
Scheduled meetings include June 5 and 19, 2018 Council meetings on
the 2018-19 Budget Supplement and primary options to address
unfunded liabilities.
ELEMENTS OF THIS PLAN
There are three key components to this Plan. These components create savings and
revenue necessary to address the unfunded liability. In addition, there are two primary
options for reducing the increased costs of the City’s unfunded liability.
THREE KEY COMPONENTS PRIMARY OPTIONS TO ADDRESS THE
UNFUNDED LIABILITY
1. New Revenues
2. Operating Reductions and New Ways
of Doing Business
3. Employee Concessions
1. Prepayment of both normal and
unfunded PERS Costs
2. Section 115 Pension Trust Formation
C-3 Pg. 76
Last Updated: April 9, 2018
KEY COMPONENTS OF THIS PLAN
The City must address an $8.9 million ($7.5 million from the General Fund and $1.4 million from
the Enterprise Funds) budget gap over the next three fiscal years (2018-19, 2019-20, and 2020-
21). There are three key components that have been identified to accomplish this Plan: 1) new
revenues, 2) operating reductions and new ways of doing business, and 3) employee
concessions. These will be apportioned as follows for the General Fund:
NEW REVENUES
30-40% of the solution is proposed through new revenues. Only the General Fund will
participate in this component.
• A General Fund Cannabis Tax. The General Fund’s primary sources of funding are taxes
and fees for services. A general-purpose tax on Cannabis sales, requiring voter approval of a
simple majority, will be evaluated for placement on the November 2018 ballot.
Should a Cannabis Tax be Unsuccessful? Should a Cannabis Tax be unsuccessful,
either by not receiving voter approval or by underperforming in projected revenues, other
new sources of revenue will be evaluated, such as consideration of increased Transient
Occupancy Tax (TOT) or a Stormwater Tax. Additional revenue from taxes and any
recommended would require further direction from Council prior to implementation.
• The Enterprise Funds will not propose new revenues to solve this problem. The
Enterprise Funds are funded by rates and/or fees for the services provided. Transit is primarily
funded through Federal and State grants and programs in combination with a 20% match from
fares. Increases to rates and/or fees will not be made to close this budget gap in the Enterprise
Funds. Any changes to those rates and/or fees in the Enterprise Funds during the fiscal period
of this Plan will be due to other cost increases or a result of enhanced fee recovery unrelated
to unfunded pension liability cost increases.
30 -40%
20 -30%
30 -40%
Revenues
New Ways of Doing Business
Operating Reductions
Concessions
C-4 Pg. 77
Last Updated: April 9, 2018
OPERATING REDUCTIONS AND NEW WAYS OF DOING BUSINESS.
30 to 40% of the solution is proposed from operating reductions and/or new ways of doing
business. All Funds and Departments will participate in this component to varying degrees.
OPERATING REDUCTIONS
1. Proactive Fiscal Management.
a. Refinance City Bonds. Eligible City
bonds will be refinanced to reduce debt
rates.
b. Pay CalPERS Required Contribution
in One-Lump Sum Once A Year. Based
upon the City’s cashflow analysis, the City
will exercise the option to pay
contributions to CalPERS in one lump
sum resulting in ongoing savings.
CalPERS offers two options of payment,
annual and one-lump sum.
c. Evaluate other Fiscal Efficiencies.
For instance, credit card bank charges
will be evaluated so that any cost
reductions which do not diminish
customer service are implemented. Other
fiscal management efficiencies will be
explored for cost savings.
2. Pursue Energy Efficiencies and
Consumption Reductions. Departments
will evaluate budgets to identify energy
efficiencies which could save both costs and
energy. Fuel and other consumables usage
will be reduced through fuel efficiency
vehicles and/or use pattern improvements.
3. Consultant services agreements. When
possible, consultant services agreements
will be renegotiated for better value and/or
budgeted amounts will be adjusted to reflect
service levels needed.
4. Other Agreements. The City has multiple
agreements for a myriad of purposes ranging
from the purchases of goods to the provision
of City services and/or use of City facilities.
Those agreements subject to renewal will be
evaluated for the opportunities to decrease
costs or to increase cost recovery while at
the same time balancing the value of
community partnerships.
5. Tax and Fee Enforcement. The City will
continue to proactively seek compliance with
business license, Transient Occupancy Tax
(TOT) Homestay, Code Enforcement, and
other activities which could result in more
accurate revenue collections.
6. Long-term liabilities. Consistent with the
City’s fiscal policies, the City will continue to
utilize one-time funds to pay down unfunded
liabilities and to invest in infrastructure.
7. Risk Management. The City will continue
to actively implement its “30% in 3” risk
management program to reduce liability and
worker’s compensation expenditures.
C-5 Pg. 78
Last Updated: April 9, 2018
NEW WAYS OF DOING BUSINESS
1. Sustainability.
The City will pursue increased
investment in sustainable infrastructure
with positive and short-term paybacks on
investment.
2. Enhanced Efficiency & Effectiveness.
a. Energy Efficiency.
Including the use of solar power will
be explored and implemented when
possible for short and long-term cost
savings. Other energy efficiencies
will be evaluated as well.
b. Enterprise Resource System.
The Motion project, consisting of
business process re-engineering and
implementation of an Enterprise
Resource System, will result in
decommissioning of several older
systems and will create opportunities
for employee efficiencies and
effectiveness.
c. Equipment Replacement.
Equipment replacement will result in
energy savings, more accurate data
collection, and more accurate
revenues will be identified.
3. Thoughtful re-organizations.
Staff transitions will be used to evaluate
current staffing levels and service
provision. The City will evaluate cross-
departmental operations, service levels,
and contracted services for re-
organization opportunities.
EMPLOYEE CONCESSIONS.
20% to 30% would be contributions via employee concessions. All Funds, General and
Enterprise, will participate in employee concessions.
• In addressing unfunded pension liability as it relates to employee concessions the City’s
adopted Fiscal Sustainability Philosophy, Compensation Philosophy and Labor Relations
Objectives will provide guidance.
• The City will meet and confer in good faith with its represented employee groups regarding
the impacts of changes to wages, hours, and/or working conditions.
PRIMARY OPTIONS TO ADDRESS THE UNFUNDED LIABILITY
The City will evaluate each of the options in June 2018: Prepayment of unfunded liabilities by pre-
paying PERS and/or funding a Section 115 Pension Trust to make future payments to PERS.
The use of each method may vary by Fund.
C-6 Pg. 79
Last Updated: April 9, 2018
COMMUNICATIONS STRATEGIES
The following identifies communication strategies with the Community and employees.
COMMUNITY ENGAGEMENT
As is the City’s practice the Community will
be engaged consistent with the City’s Public
Engagement and Noticing (PEN) Manual.
There will be multiple methods of
communications used to inform and educate
the community as well as receive feedback
and address questions and concerns. In
addition to the PEN methods of
communication and public engagement will
include:
• Public Notification of Council
Meetings on the Plan.
• What’s New in SLO and other
website informational postings.
• E-notification, social media posts
and press releases.
• Community forums and
workshops in conjunction with the
financial planning process.
• Presentations to City Advisory
Bodies and interested community
groups.
• Open City Hall topics.
EMPLOYEE ENGAGEMENT
As is the City’s practice all employees will be
engaged in the financial planning process
and the application of this Plan to that
process. There will be multiple methods of
communications to inform and educate
employees as well as receive input and
address questions and concerns.
• Briefings with City Manager,
Department Heads and Budget
Manager.
• Updates via emails and
SLOWhat Monthly publication.
• Briefings with employee
associations’ representatives.
• Surveys to Employees
• Organization-wide briefings.
C-7 Pg. 80
Last Updated: April 9, 2018
IMPLEMENTATION OF THE PLAN
• The Plan will guide staff’s preparation of the 2018-19 Budget Supplement for Council’s
consideration and adoption in June 2018.
• The Plan will guide the Financial Plan process for the development of the Major City Goals
and Financial Plan for 2019-21.
EXTERNAL IMPACTS TO PLAN
This plan has been based on assumptions made in the fiscal forecast in December 2017. It is
based on fiscal forecasts which have multiple inputs from multiple economic resources both
external and internal to the City. However, a forecast is an estimate at a point and time and during
the life of this Plan there could be significant external forces which further impact the City’s fiscal
forecast. There are other fiscal policies and plans in place to help guide such a change. The
following could have impact to the City’s overall budget through either expenditures or revenues
and would result in staff returning to Council for further direction.
• Changes in Economic Conditions. The nation continues to be in an unprecedented
economic expansion following the Great Recession. This is unlikely to continue for the
entire period of this Plan. Additionally, changes in federal fiscal policy and grant funding
may result in a slowing of the national and local economies.
• Diablo Closure
The closure of Diablo Canyon presents an uncertain economic impact to the City and
County of San Luis Obispo. At the time of this Plan’s creation, the mitigation of that
impact is uncertain. The City will continue to have a lead role in addressing this problem
and preparing an economic and financial analysis of the impacts of this closure. This
analysis will be incorporated into the 2019-21 Financial Plan.
• Further CalPERS Changes. Required contributions to CalPERS are based on actuarial
assumptions and further changes may occur if approved by the CalPERS Board.
Examples of past significant changes in assumptions include changes to amortization
periods, changes to expected rate of return, and changes to demographic assumptions.
Future changes in actuarial assumptions may once again result in significant fiscal impacts
to the City.
• Natural Disaster. All municipalities are vulnerable to natural disasters be it earthquake,
fire, or flood. The City maintains reserves for these unfortunate circumstances but in
recent years the magnitude of disasters seen in neighboring cities north and south have
been at unprecedented economic levels.
C-8 Pg. 81
SECTION D: SUMMARY OF OVERALL BUDGET SUPPLEMENT
This section provides simple charts and tables which highlight key financial relationships and summarize
the overall budget document. Graphics summarizing the following areas are included:
• Summary of Revenues and
Expenditures for 2017‐18 and 2018‐19
Changes in
Financial Position
• Revenue by Fund and TypeRevenue Detail
• Expenditure by Department, Function,
and Type
Expenditure
Detail
• Transfers between funds
Operating
Transfers
• Authorized positions by Department
Authorized
Regular Positions
D-1 Pg. 82
CHANGES IN FINANCIAL POSITION
ALL FUNDS COMBINED
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Tax Revenues 56,753,255 57,723,638 59,710,423 59,587,543 (122,880) 0%
Fines and Forfeitures 670,178 802,600 740,800 764,600 23,800 3%
Investment and Property Revenues 473,040 507,898 516,898 519,898 3,000 1%
From Other Governments 6,834,649 19,476,604 18,771,684 18,589,100 (182,584) -1%
Service Charges
Governmental Funds 14,728,538 11,579,969 11,491,458 11,723,320 231,862 2%
Enterprise Funds 42,303,618 43,994,133 43,397,445 45,272,942 1,875,497 4%
Trust and Agency Revenues - - - - - 0%
Other Revenues 1,312,896 254,877 477,300 611,816 134,516 28%
Total Revenues 123,076,173 134,339,719 135,106,008 137,069,219 1,963,211 1%
Expenditures
Operating Programs
Community Safety 28,182,941 32,496,354 32,394,244 31,816,719 (577,525) -2%
Infrastructure & Transportation 27,164,304 29,498,607 31,432,525 31,092,644 (339,881) -1%
Culture & Recreation 3,506,780 6,483,472 3,858,583 3,695,170 (163,413) -4%
Environmental Health & Open Space 7,367,428 9,681,436 8,931,782 8,582,798 (348,984) -4%
Community & Neighborhood Livability 9,955,543 6,903,105 8,900,042 9,400,943 500,901 6%
Fiscal Health & Governance 19,899,227 24,238,198 22,384,524 21,852,244 (532,280) -2%
CalPERS Discount Rate - - 432,211 - (432,211) -100%
Total Operating Programs 96,076,223 109,301,173 108,333,911 106,440,517 (1,893,394) -2%
Reimbursed Expenditures (4,164,747) (4,264,633) (4,264,633) (3,917,663) 346,970 -8%
Capital Improvement Plan Projects 17,822,303 70,223,298 92,617,277 51,080,667 (41,536,610) -45%
Debt Service 5,096,743 7,969,844 8,860,368 8,539,658 (320,710) -4%
Total Expenditures 114,830,522 183,229,681 205,546,923 162,143,179 (43,403,744) -21%
Other Sources (Uses)
Adjustment to Working Capial - - - - - 0%
Operating Transfers In 11,756,033 11,924,950 11,443,133 10,688,969 (754,164) -7%
Operating Transfers Out (11,658,548) (11,924,607) (11,477,482) (11,603,074) (125,592) 1%
Proceeds from Debt Financing 1,141,468 595,000 65,773,000 23,600,203 (42,172,797) -64%
Projected MOA Adjustments - - - - - 0%
Other Sources (Uses)- - - - - 0%
Expenditure Savings - 1,268,462 1,300,000 1,300,000 - 0%
Total Other Sources (Uses)1,238,953 1,863,805 67,038,651 23,986,098 (43,052,553) -64%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 9,484,604 (47,026,158) (3,402,264) (1,087,862) 2,314,402 -68%
Fund Balance, Beginning of Year 125,495,919 134,980,651 67,271,610 88,130,147 20,858,537 31%
Fund Balance, End of Year 134,980,524 87,954,493 63,869,346 87,042,285
Prior Year Restatement - 0%
Reserved for Debt Service 2,125,253 2,125,252 2,119,721 2,125,252 5,531 0%
Unreserved 132,855,271 85,829,242 61,749,625 84,917,033 23,167,408 38%
Total Fund Balance 134,980,524 87,954,493 63,869,346 87,042,285 23,172,939 36%
2017 - 19 Financial Plan
Variance % Change
D-2 Pg. 83
CHANGES IN FINANCIAL POSITION
ALL GOVERNMENTAL FUNDS COMBINED
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Tax Revenues 56,753,255 57,723,638 59,710,423 59,587,543 (122,880) 0%
Fines and Forfeitures 139,534 147,600 147,600 147,600 - 0%
Investment and Property Revenues 259,301 356,098 356,098 356,098 - 0%
From Other Governments 2,654,263 16,514,738 15,121,885 15,121,885 - 0%
Service Charges 14,728,538 11,579,969 11,491,458 11,723,320 231,862 2%
Other Revenues 620,830 176,777 146,200 198,200 52,000 36%
Total Revenues 75,155,721 86,498,820 86,973,664 87,134,646 160,982 0%
Expenditures
Operating Programs
Community Safety 28,182,941 32,496,354 32,394,244 31,816,719 (577,525) -2%
Infrastructure & Transportation 10,482,258 10,198,619 11,974,763 11,307,026 (667,737) -6%
Culture & Recreation 3,506,780 6,475,972 3,851,083 3,687,670 (163,413) -4%
Environmental Health & Open Space 874,057 1,847,292 1,196,643 1,107,516 (89,127) -7%
Community & Neighborhood Livability 8,964,068 6,372,018 8,368,495 8,902,403 533,908 6%
Fiscal Health & Governance 13,938,106 17,598,967 15,968,836 15,819,015 (149,821) -1%
CalPERS Discount Rate - - 375,000 - (375,000) -100%
Total Operating Programs 65,948,210 74,989,222 74,129,064 72,640,350 (1,488,714) -2%
Reimbursed Expenditures (4,164,747) (4,264,633) (4,264,633) (3,917,663) 346,970 -8%
Total Operating Expenditures 61,783,463 70,724,589 69,864,431 68,722,687 (1,141,744) -2%
Capital Improvement Plan Projects 10,145,986 36,755,196 23,265,607 24,758,084 1,492,477 6%
Debt Service 3,243,976 3,374,758 3,506,210 3,185,500 (320,710) -9%
Total Expenditures 75,173,425 110,854,543 96,636,248 96,666,271 30,023 0%
Other Sources (Uses)
Operating Transfers In 11,756,033 11,924,950 11,443,133 10,688,969 (754,164) -7%
Operating Transfers Out (10,606,985) (9,918,041) (9,362,660) (9,488,252) (125,592) 1%
Proceeds from Debt Financing 1,141,468 595,000 773,000 773,000 - 0%
Projected MOA Adjustments - - - - - 0%
Expenditure Savings - 1,268,462 1,300,000 1,300,000 - 0%
Total Other Sources (Uses)2,290,516 3,870,371 4,153,473 3,273,717 (879,756) -21%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 2,272,812 (20,485,352) (5,509,111) (6,257,907) (748,796) 14%
Fund Balance, Beginning of Year 49,602,347 51,875,159 26,281,236 31,565,461 5,284,225 20%
Prior Year Restatement - 0%
Fund Balance, End of Year 51,875,159 31,389,807 20,772,125 25,307,554 4,535,429 22%
Reserved for Debt Service 2,125,253 2,125,252 2,119,721 2,125,252 5,531 0%
Unreserved 49,749,906 29,264,555 18,652,404 23,182,302 4,529,898 24%
Total Fund Balance 51,875,159 31,389,807 20,772,125 25,307,554 4,535,429 22%
2017 - 19 Financial Plan
Variance % Change
D-3 Pg. 84
CHANGES IN FINANCIAL POSITION
ALL ENTERPRISE AND AGENCY FUNDS COMBINED
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Fines and Forfeitures 530,644 655,000 593,200 617,000 23,800 4%
Investment and Property Revenues 213,739 151,800 160,800 163,800 3,000 2%
From Other Governments 4,180,386 2,961,866 3,649,799 3,467,215 (182,584) -5%
Service Charges 42,303,618 43,994,133 43,397,445 45,272,942 1,875,497 4%
Trust and Agency Revenues - - - - - 0%
Other Revenues 692,065 78,100 331,100 413,616 82,516 25%
Total Revenues 47,920,452 47,840,899 48,132,344 49,934,573 1,802,229 4%
Expenditures
Operating Programs
Infrastructure & Transportation 16,682,046 19,299,988 19,457,762 19,785,618 327,856 2%
Environmental Health & Open Space 6,493,371 7,834,144 7,735,139 7,475,282 (259,857) -3%
Community & Neighborhood Livability 991,475 531,087 531,547 498,540 (33,007) -6%
Culture & Recreation - 7,500 7,500 7,500 - 0%
Fiscal Health & Governance 5,961,121 6,639,232 6,415,688 6,033,228 (382,460) -6%
CalPERS Discount Rate - - 57,211 - (57,211) -100%
Total Operating Programs 30,128,013 34,311,951 34,204,847 33,800,168 (404,679) -1%
Capital Improvement Plan Projects 7,676,316 33,468,102 69,351,670 26,322,583 (43,029,087) -62%
Debt Service 1,852,767 4,595,086 5,354,158 5,354,158 - 0%
Total Expenditures 39,657,096 72,375,138 108,910,675 65,476,909 (43,433,766) -40%
Other Sources (Uses)
Adjustment to Working Capial - - - - - 0%
Operating Transfers In - - - - - 0%
Operating Transfers Out (1,051,563) (2,006,566) (2,114,822) (2,114,822) - 0%
Proceeds from Debt Financing - - 65,000,000 22,827,203 (42,172,797) -65%
Projected MOA Adjustments - - - - - 0%
Other Sources (Uses)- - - - - 0%
Total Other Sources (Uses)(1,051,563) (2,006,566) 62,885,178 20,712,381 (42,172,797) -67%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 7,211,793 (26,540,806) 2,106,847 5,170,045 3,063,198 145%
Fund Balance, Beginning of Year 75,893,572 83,105,492 40,990,374 56,564,686 15,574,312 38%
Fund Balance, End of Year 83,105,365 56,564,686 43,097,221 61,734,731 18,637,510 43%
2017 - 19 Financial Plan
Variance % Change
D-4 Pg. 85
CHANGES IN FINANCIAL POSITION
GENERAL FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Tax Revenues 49,421,595 50,278,542 52,031,423 51,914,459 (116,964) 0%
Fines and Forfeitures 139,534 147,600 147,600 147,600 - 0%
Investment and Property Revenues 115,544 264,798 264,798 264,798 - 0%
From Other Governments 1,014,859 1,816,000 385,560 385,560 - 0%
Service Charges 9,119,053 9,603,082 9,482,283 9,732,679 250,396 3%
Other Revenues 172,902 136,777 66,200 118,200 52,000 79%
Total Revenues 59,983,487 62,246,799 62,377,864 62,563,296 185,432 0%
Expenditures
Operating Programs
Community Safety 26,899,115 30,857,079 30,536,947 30,179,351 (357,596) -1%
Infrastructure & Transportation 10,111,383 9,797,824 11,443,756 10,891,344 (552,412) -5%
Culture & Recreation 3,422,531 6,392,452 3,851,083 3,603,107 (247,976) -6%
Environmental Health & Open Space 759,941 1,707,607 1,044,575 960,448 (84,127) -8%
Community & Neighborhood Livability 8,482,191 5,812,980 8,084,949 8,418,063 333,114 4%
Fiscal Health & Governance 11,275,461 14,758,205 13,396,029 13,235,933 (160,096) -1%
CalPERS Discount Rate - - 375,000 - (375,000) -100%
Total Program Expenditures 60,950,622 69,326,147 68,732,339 67,288,247 (1,444,092) -2%
Reimbursed Expenditures (4,164,747) (4,264,633) (4,264,633) (3,917,663) 346,970 -8%
Total Expenditures 56,785,875 65,061,514 64,467,706 63,370,584 (1,097,122) -2%
Other Sources (Uses)
Operating Transfers In 2,109,723 3,398,300 3,259,635 2,576,179 (683,456) -21%
Operating Transfers Out (9,614,658) (4,893,562) (5,148,535) (5,257,127) (108,592) 2%
Proceeds from Debt Financing - - - - - 0%
Other Sources - - - - - 0%
Expenditure Savings - 1,268,462 1,300,000 1,300,000 - 0%
Total Other Sources (Uses)(7,504,935) (226,800) (588,900) (1,380,948) (792,048) 134%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses (4,307,323) (3,041,515) (2,678,742) (2,188,236) 490,506 -18%
Transfer to Local Revenue Measure Fund
UN Fund Balance, Beginning of Year 24,895,170 20,587,847 14,599,789 17,546,332 2,946,543 20%
Prior Year Restatement
Fund Balance, End of Year sub-total 20,587,847 17,546,332 11,921,047 15,358,096 3,437,049 29%
Fund Balance Components:
Designated Reserves (50,000) (651,212) 0%
Policy Reserve Level @ 20%: (10,902,368) (10,902,368) (10,777,000) (11,095,628) (318,628) 3%
Amount Over (Under) Policy Reserve:9,635,479 5,992,752 1,144,047 4,262,468 3,118,421 273%
2017 - 19 Financial Plan
Variance % Change
D-5 Pg. 86
CHANGES IN FINANCIAL POSITION
LOCAL REVENUE MEASURE SUB-FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Tax Revenues 7,331,660 7,445,096 7,679,000 7,673,084 (5,916) 0%
Investment and Property Revenues 44,796 - - - - 0%
Total Revenues 7,376,456 7,445,096 7,679,000 7,673,084 (5,916) 0%
Expenditures
Operating Programs
Community Safety 1,204,966 1,539,130 1,857,297 1,593,272 (264,025) -14%
Infrastructure & Transportation 370,875 400,795 531,007 415,682 (115,325) -22%
Culture & Recreation 84,249 83,520 - 84,563 84,563 0%
Environmental Health & Open Space 114,116 139,685 152,068 147,068 (5,000) -3%
Community & Neighborhood Livability 352,617 366,628 84,563 384,350 299,787 355%
Fiscal Health & Governance - - - - - 0%
Capital Improvement Plan Projects 4,080,548 11,087,892 5,002,323 4,952,323 (50,000) -1%
Total Expenditures 6,207,371 13,617,650 7,627,258 7,577,258 (50,000) -1%
Other Sources (Uses)
Operating Transfers In - 1,658,400 1,197,723 1,197,723 - 0%
Operating Transfers Out - (1,788,400) (1,462,723) (1,462,723) - 0%
Total Other Sources (Uses) - (130,000) (265,000) (265,000) - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 1,169,085 (6,302,554) (213,258) (169,174) 44,084 -21%
Fund Balance, Beginning of Year 4,732,397 5,901,482 (248,507) (401,073) (152,566) 61%
Fund Balance, End of Year sub-total* 5,901,482 (401,073) (461,765) (570,247) (108,482) 23%
Fund Balance Components:
Reserved 50,000
Unreserved 5,951,482
*20% Reserve fund balance is fully reported/calculated within General Fund Changes in Financial Position.
Variance % Change
2017 - 19 Financial Plan
D-6 Pg. 87
CHANGES IN FINANCIAL POSITION
INSURANCE BENEFIT
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 6,391 - - - - 0%
Service Charges - - - - - 0%
Total Revenues 6,391 - - - - 0%
Expenditures
Operating Programs
Fiscal Health & Governance 1,067,109 1,000,000 1,000,000 1,000,000 - 0%
Capital Improvement Plan Projects - - - - - 0%
Total Expenditures 1,067,109 1,000,000 1,000,000 1,000,000 - 0%
Other Sources (Uses)
Operating Transfers In 1,739,898 750,000 500,000 500,000 - 0%
Operating Transfers Out - - - - - 0%
Total Other Sources (Uses)1,739,898 750,000 500,000 500,000 - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 679,180 (250,000) (500,000) (500,000) - 0%
Fund Balance, Beginning of Year 339,852 1,019,032 829,749 769,032 (60,717) -7%
Fund Balance, End of Year 1,019,032 769,032 329,749 269,032 (60,717) -18%
Variance % Change
2017 - 19 Financial Plan
D-7 Pg. 88
CHANGES IN FINANCIAL POSITION
DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues - - - - - 0%
Service Charges - 0%
Ser Assessments 225,894 227,000 227,000 227,000 - 0%
Ser Other Service Charges - - - - - 0%
Other Revenues - - - - - 0%
Total Revenues 225,894 227,000 227,000 227,000 - 0%
Expenditures
Operating Programs
Fiscal Health & Governance 232,473 227,000 227,000 227,000 - 0%
Capital Improvement Plan Projects - - - - - 0%
Total Expenditures 232,473 227,000 227,000 227,000 - 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 (5,457) 1,122 (5,457) (6,579) -586%
Prior Year Restatement
Fund Balance, End of Year (5,457) (5,457) 1,122 (5,457) (6,579) -586%
Variance % Change
2017 - 19 Financial Plan
D-8 Pg. 89
CHANGES IN FINANCIAL POSITION
TOURISM BUSINESS IMPROVEMENT DISTRICT FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 2,744 1,400 1,400 1,400 - 0%
Service Charges 1,478,345 1,464,387 1,493,675 1,473,000 (20,675) -1%
Total Revenues 1,481,089 1,465,787 1,495,075 1,474,400 (20,675) -1%
Expenditures
Operating Programs
Fiscal Health & Governance 1,363,063 1,613,762 1,345,807 1,356,082 10,275 1%
Capital Improvement Plan Projects - - - - - 0%
Total Expenditures 1,363,063 1,613,762 1,345,807 1,356,082 10,275 1%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out (28,868) (27,679) (28,679) (28,679) - 0%
Total Other Sources (Uses)(28,868) (27,679) (28,679) (28,679) - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 89,158 (175,654) 120,589 89,639 (30,950) -26%
Fund Balance, Beginning of Year 340,275 429,433 344,810 429,433 84,623 25%
Prior Year Restatement
Fund Balance, End of Year 429,433 253,779 465,399 519,072 53,673 12%
Variance % Change
2017 - 19 Financial Plan
D-9 Pg. 90
CHANGES IN FINANCIAL POSITION
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
From Other Governments
Fro CDBG Allocation 187,100 232,623 - - - 0%
Fro Other Revenues - - - - - 0%
Total Revenues 187,100 232,623 - - - 0%
Expenditures
Operating Programs
Community & Neighborhood Livability 129,260 192,410 198,983 99,990 (98,993) -50%
Fiscal Health & Governance - - - - - 0%
Total Operating Programs 129,260 192,410 198,983 99,990 (98,993) -50%
Capital Improvement Plan Projects 101,548 341,351 - - - 0%
Debt Service - - - - - 0%
Total Expenditures 230,808 533,761 198,983 99,990 (98,993) -50%
Other Sources (Uses)
Operating Transfers In 153,969 154,000 154,000 154,000 - 0%
Operating Transfers Out - - - - - 0%
Total Other Sources (Uses)153,969 154,000 154,000 154,000 - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 110,261 (147,138) (44,983) 54,010 98,993 -220%
Fund Balance, Beginning of Year 16,325 126,586 105,539 (20,552) (126,091) -119%
Fund Balance, End of Year 126,586 (20,552) 60,556 33,458 (27,098) -45%
Variance % Change
2017 - 19 Financial Plan
D-10 Pg. 91
CHANGES IN FINANCIAL POSITION
GAS TAX FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
From Other Governments
Fro Gasoline Tax 913,428 965,000 965,000 965,000 - 0%
Total Revenues 913,428 965,000 965,000 965,000 - 0%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out (913,428) (965,000) (965,000) (965,000) - 0%
Total Other Sources (Uses)(913,428) (965,000) (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).
2017 - 19 Financial Plan
Variance % Change
D-11 Pg. 92
CHANGES IN FINANCIAL POSITION
TRANSPORTATION DEVELOPMENT ACT (TDA) FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
From Other Governments 40,501 45,000 45,000 45,000 - 0%
Total Revenues 40,501 45,000 45,000 45,000 - 0%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out (40,501) (45,000) (45,000) (45,000) - 0%
Total Other Sources (Uses)(40,501) (45,000) (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%
2017 - 19 Financial Plan
% Change Variance
D-12 Pg. 93
CHANGES IN FINANCIAL POSITION
LAW ENFORCEMENT GRANTS FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues - - - - - 0%
From Other Governments 141,359 100,000 21,325 21,325 - 0%
Service Charges 2,523 - - 2,142 2,142 0%
Total Revenues 143,882 100,000 21,325 23,467 2,142 10%
Expenditures
Operating Programs
Community Safety 78,860 100,145 - 44,096 44,096 0%
Capital Improvement Plan Projects 58,258 69,607 - - - 0%
Total Expenditures 137,119 169,752 - 44,096 44,096 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) (69,752) 21,325 (20,629) (41,954) -197%
Fund Balance, Beginning of Year 23,492 20,786 105,455 (48,966) (154,421) -146%
Fund Balance, End of Year 20,786 (48,966) 126,780 (69,595) (196,375) -155%
2017 - 19 Financial Plan
Variance % Change
D-13 Pg. 94
CHANGES IN FINANCIAL POSITION
PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 4,294 2,100 2,100 2,100 - 0%
Service Charges
Ser In-lieu fees 138,869 35,500 38,500 38,500 - 0%
Other Revenues - - - - - 0%
Total Revenues 143,162 37,600 40,600 40,600 - 0%
Expenditures
Operating Programs
Culture & Recreation - - - - - 0%
Capital Improvement Plan Projects 98,093 135,097 126,700 126,700 - 0%
Total Expenditures 98,093 135,097 126,700 126,700 - 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 45,069 (97,497) (86,100) (86,100) - 0%
Fund Balance, Beginning of Year 423,809 468,878 104,613 371,381 266,768 255%
Fund Balance, End of Year 468,878 371,381 18,513 285,281 266,768 1441%
2017 - 19 Financial Plan
Variance % Change
D-14 Pg. 95
CHANGES IN FINANCIAL POSITION
GENERAL PURPOSE CIP
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
From Other Governments 293,664 13,296,115 13,705,000 13,705,000 - 0%
Service Charges - - - - - 0%
Other Revenues - - - - - 0%
Total Revenues 293,664 13,296,115 13,705,000 13,705,000 - 0%
Expenditures
Capital Improvement Plan Projects 1,357,473 15,186,431 13,966,000 15,433,477 1,467,477 11%
Total Expenditures 1,357,473 15,186,431 13,966,000 15,433,477 1,467,477 11%
Other Sources (Uses)
Operating Transfers In 439,900 449,548 257,400 257,400 - 0%
Operating Transfers Out - - - - - 0%
Other Sources (Uses)- - - - - 0%
Sale of Surplus Property - - - - - 0%
Total Other Sources (Uses)439,900 449,548 257,400 257,400 - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses (623,910) (1,440,768) (3,600) (1,471,077) (1,467,477) 40763%
Fund Balance, Beginning of Year 2,161,346 1,537,437 259,135 96,669 (162,466) -63%
Prior Year Restatement
Fund Balance, End of Year 1,537,437 96,669 255,535 (1,374,408) (1,629,943) -638%
2017 - 19 Financial Plan
Variance % Change
D-15 Pg. 96
CHANGES IN FINANCIAL POSITION
PARKLAND DEVELOPMENT FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 16,450 3,900 3,900 3,900 - 0%
From Other Governments - - - - - 0%
Service Charges -
Ser Park In-Lieu Fees 195,081 - - - - 0%
Ser Dwelling Unit Fees 9,005 - - - - 0%
Other Revenues 301,800 - - - - 0%
Total Revenues 522,336 3,900 3,900 3,900 - 0%
Expenditures
Capital Improvement Plan Projects 4,142 333,556 179,000 254,000 75,000 42%
Total Expenditures 4,142 333,556 179,000 254,000 75,000 42%
Other Sources (Uses)
Operating Transfers In 900,000 - - - - 0%
Operating Transfers Out - (160,000) - - - 0%
Total Other Sources (Uses)900,000 (160,000) - - - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 1,418,194 (489,656) (175,100) (250,100) (75,000) 43%
Fund Balance, Beginning of Year 841,811 2,260,005 1,251,014 1,770,349 519,335 42%
Fund Balance, End of Year 2,260,005 1,770,349 1,075,914 1,520,249 444,335 41%
% Change
2017 - 19 Financial Plan
Variance
D-16 Pg. 97
CHANGES IN FINANCIAL POSITION
TRANSPORTATION IMPACT FEE FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues (7,641) 46,000 46,000 46,000 - 0%
From Other Governments - - - - - 0%
Service Charges 1,615,385 250,000 250,000 250,000 - 0%
Other Revenues - - - - - 0%
Total Revenues 1,607,744 296,000 296,000 296,000 - 0%
Expenditures
Capital Improvement Plan Projects 270,267 4,314,273 1,369,000 1,369,000 - 0%
Total Expenditures 270,267 4,314,273 1,369,000 1,369,000 - 0%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out - (250,000) (250,000) (250,000) - 0%
Proceeds from Debt Financing - - - - - 0%
Total Other Sources (Uses)- (250,000) (250,000) (250,000) - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 1,337,477 (4,268,273) (1,323,000) (1,323,000) - 0%
Fund Balance, Beginning of Year 6,219,680 7,557,157 2,862,129 3,288,884 426,755 15%
Prior Year Restatement
Fund Balance, End of Year 7,557,157 3,288,884 1,539,129 1,965,884 426,755 28%
Variance % Change
2017 - 19 Financial Plan
D-17 Pg. 98
CHANGES IN FINANCIAL POSITION
FLEET REPLACEMENT FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 10,898 10,000 10,000 10,000 - 0%
Service Charges - - - - - 0%
Other Revenues -
OthSale of Surplus Property 137,034 40,000 80,000 80,000 - 0%
OthGreen Vehicle Rebates 9,000 - - - - 0%
Total Revenues 156,932 50,000 90,000 90,000 - 0%
Expenditures
Capital Improvement Plan Projects 1,594,712 1,194,078 434,000 434,000 - 0%
Total Expenditures 1,594,712 1,194,078 434,000 434,000 - 0%
Other Sources (Uses)
Operating Transfers In 31,652 768,000 624,000 624,000 - 0%
Operating Transfers Out (60) (768,000) (773,000) (773,000) - 0%
Proceeds from Debt Financing 1,141,468 595,000 773,000 773,000 - 0%
Total Other Sources (Uses)1,173,060 595,000 624,000 624,000 - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses (264,721) (549,078) 280,000 280,000 - 0%
Fund Balance, Beginning of Year 1,809,605 1,544,884 865,374 995,806 130,432 15%
Fund Balance, End of Year 1,544,884 995,806 1,145,374 1,275,806 130,432 11%
Variance % Change
2017 - 19 Financial Plan
D-18 Pg. 99
CHANGES IN FINANCIAL POSITION
OPEN SPACE PROTECTION FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment 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%
Expenditures
Capital Improvement Plan Projects 36,074 334,807 - - - 0%
Total Expenditures 36,074 334,807 - - - 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 (334,807) - - - 0%
Fund Balance, Beginning of Year 549,349 588,743 185,368 253,936 68,568 37%
Fund Balance, End of Year 588,743 253,936 185,368 253,936 68,568 37%
Variance % Change
2017 - 19 Financial Plan
D-19 Pg. 100
CHANGES IN FINANCIAL POSITION
AIRPORT AREA IMPACT FEE FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 9,577 5,000 5,000 5,000 - 0%
Service Charges 24,437 - - - - 0%
Total Revenues 34,014 5,000 5,000 5,000 - 0%
Expenditures
Capital Improvement Plan Projects 5,000 106,669 750,000 750,000 - 0%
Total Expenditures 5,000 106,669 750,000 750,000 - 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 29,014 (101,669) (745,000) (745,000) - 0%
Fund Balance, Beginning of Year 1,079,956 1,108,970 974,287 1,007,301 33,014 3%
Fund Balance, End of Year 1,108,970 1,007,301 229,287 262,301 33,014 14%
Variance % Change
2017 - 19 Financial Plan
D-20 Pg. 101
CHANGES IN FINANCIAL POSITION
AFFORDABLE HOUSING FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 5,246 14,000 14,000 14,000 - 0%
From Other Governments - - - - - 0%
Service Charges 1,489,668 - - - - 0%
Total Revenues 1,494,914 14,000 14,000 14,000 - 0%
Expenditures
Capital Improvement Plan Projects 1,490,739 33,488 - - - 0%
Total Expenditures 1,490,739 33,488 - - - 0%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out - - - (17,000) (17,000) 0%
Total Other Sources (Uses)- - - (17,000) (17,000) 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 4,175 (19,488) 14,000 (3,000) (17,000) -121%
Fund Balance, Beginning of Year 2,562,825 2,567,000 1,043,598 2,547,512 1,503,914 144%
Fund Balance, End of Year 2,567,000 2,547,512 1,057,598 2,544,512 1,486,914 141%
2017 - 19 Financial Plan
Variance % Change
D-21 Pg. 102
CHANGES IN FINANCIAL POSITION
LOS OSOS VALLEY ROAD SUB-AREA FEE FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 5,946 1,700 1,700 1,700 - 0%
Service Charges 422,858 - - - - 0%
Total Revenues 428,804 1,700 1,700 1,700 - 0%
Expenditures
Capital Improvement Plan Projects 463,826 34,518 - - - 0%
Total Expenditures 463,826 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) (32,818) 1,700 1,700 - 0%
Fund Balance, Beginning of Year 163,969 128,947 167,369 96,129 (71,240) -43%
Fund Balance, End of Year 128,947 96,129 169,069 97,829 (71,240) -42%
2017 - 19 Financial Plan
Variance % Change
D-22 Pg. 103
CHANGES IN FINANCIAL POSITION
INFORMATION TECHNOLOGY REPLACEMENT
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 27,552 5,000 5,000 5,000 - 0%
From Other Governments - 60,000 - - - 0%
Service Charges - - - - - 0%
Total Revenues 27,552 65,000 5,000 5,000 - 0%
Expenditures
Capital Improvement Plan Projects 221,763 2,885,637 1,294,294 1,294,294 - 0%
Total Expenditures 221,763 2,885,637 1,294,294 1,294,294 - 0%
Other Sources (Uses)
Operating Transfers In 2,621,000 689,745 1,350,967 1,350,967 - 0%
Operating Transfers Out - (536,500) (182,023) (182,023) - 0%
Proceeds from Debt Financing - - - - - 0%
Total Other Sources (Uses)2,621,000 153,245 1,168,944 1,168,944 - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 2,426,789 (2,667,392) (120,350) (120,350) - 0%
Fund Balance, Beginning of Year 740,907 3,167,696 474,252 500,304 26,052 5%
Fund Balance, End of Year 3,167,696 500,304 353,902 379,954 26,052 7%
2017 - 19 Financial Plan
Variance % Change
D-23 Pg. 104
CHANGES IN FINANCIAL POSITION
MAJOR FACILITY REPLACEMENT
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 6,537 1,300 1,300 1,300 - 0%
Service Charges - - - - - 0%
Total Revenues 6,537 1,300 1,300 1,300 - 0%
Expenditures
Capital Improvement Plan Projects 363,544 447,792 144,290 144,290 - 0%
Total Expenditures 363,544 447,792 144,290 144,290 - 0%
Other Sources (Uses)
Operating Transfers In 514,025 682,200 593,200 593,200 - 0%
Operating Transfers Out - (483,900) (507,700) (507,700) - 0%
Total Other Sources (Uses)514,025 198,300 85,500 85,500 - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 157,019 (248,192) (57,490) (57,490) - 0%
Fund Balance, Beginning of Year 268,968 425,987 171,752 177,794 6,042 4%
Fund Balance, End of Year 425,987 177,794 114,262 120,304 6,042 5%
2017 - 19 Financial Plan
Variance % Change
D-24 Pg. 105
CHANGES IN FINANCIAL POSITION
INFRASTRUCTURE INVESTMENT FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 2,728 900 900 900 - 0%
Service Charges - - - - - 0%
Total Revenues 2,728 900 900 900 - 0%
Expenditures
Capital Improvement Plan Projects - 250,000 - - - 0%
Total Expenditures - 250,000 - - - 0%
Other Sources (Uses)
Operating Transfers In - - - 250,000 250,000 0%
Operating Transfers Out - - - - - 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 2,728 (249,100) 900 250,900 250,000 27778%
Fund Balance, Beginning of Year 311,765 314,493 64,665 65,393 728 1%
Fund Balance, End of Year 314,493 65,393 65,565 316,293 250,728 382%
2017 - 19 Financial Plan
Variance % Change
D-25 Pg. 106
CHANGES IN FINANCIAL POSITION
DEBT SERVICE FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 3,544 - - - - 0%
Other Revenues 94 - - - - 0%
Total Revenues 3,639 - - - - 0%
Expenditures
Debt Service
DebCost of debt issuance - - - - 0%
Deb2018 Dump Truck/Sweeper - 130,000 129,000 129,000 - 0%
Deb2017 Fleet Replacement 240,067 240,068 240,068 240,068 - 0%
Deb2012/2001 Refunded Revenue Bonds 381,975 385,075 387,875 387,875 - 0%
Deb2004/1994 Refunding Revenue Bonds - - - - - 0%
Deb2005/1996 Refunding Revenue Bonds 466,789 469,589 466,789 - (466,789) -100%
Deb2006 Lease Revenue Bonds 459,914 458,940 459,832 - (459,832) -100%
Deb2009 Lease Revenue Bonds 826,610 826,779 820,501 - (820,501) -100%
DebFire Engine/Truck Lease Purchase 129,202 125,764 127,326 127,326 - 0%
DebCapital Lease / Fire Truck 2014 116,702 116,702 116,702 116,702 - 0%
DebCapital Lease (I.T. Equipment)199,235 199,235 199,236 199,236 - 0%
Deb2014 Lease Revenue Bond/ LOVR 422,181 422,606 422,881 422,881 - 0%
DebFire Engine Replacement 2019 - - 136,000 136,000 - 0%
Deb2018 Lease Revenue Bonds (Refi)- - - 1,426,412 1,426,412 0%
DebPERS Side Fund Payment - - - - - 0%
DebFleet Debt Service - - - - - 0%
Total Debt Service 3,242,676 3,374,758 3,506,210 3,185,500 (320,710) -9%
DebOther Operating Expenditures 1,300 - - -
Total Expenditures 3,243,976 3,374,758 3,506,210 3,185,500 (320,710) -9%
Other Sources (Uses)
Operating Transfers In 3,245,866 3,374,757 3,506,208 3,185,500 (320,708) -9%
Operating Transfers Out - - - - - 0%
Proceeds from Debt Financing - - - - - 0%
Total Other Sources (Uses)3,245,866 3,374,757 3,506,208 3,185,500 (320,708) -9%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 5,529 (1) (2) - 2 -100%
Fund Balance, Beginning of Year 2,119,724 2,125,253 2,119,723 2,125,252 5,529 0%
Fund Balance, End of Year 2,125,253 2,125,252 2,119,721 2,125,252 5,531 0%
2017 - 19 Financial Plan
% Change Variance
D-26 Pg. 107
CHANGES IN FINANCIAL POSITION
WATER FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 67,445 50,000 50,000 50,000 - 0%
From Other Governments - - - - - 0%
Service Charges -
Ser Water Sales -
ServiceWater Service Charges 17,407,694 17,874,312 18,167,251 19,221,173 1,053,922 6%
ServiceSales to Other Agencies 793,749 866,250 892,238 914,000 21,762 2%
Ser Development Impact Fees 1,266,674 1,200,000 800,000 800,000 - 0%
Ser Connection Charges and Meter Sales 51,426 61,000 61,000 61,000 - 0%
Ser Late Charges and Credit Card Fees 10,605 23,000 23,000 - (23,000) -100%
Ser Account Set-up Fee 103,171 156,000 156,000 156,000 - 0%
Ser AB 939 Reimbursement 145,819 145,000 147,900 147,900 - 0%
Total Service Charges 19,779,138 20,325,562 20,247,389 21,300,073 1,052,684 5%
Other Revenues 604,841 32,000 283,000 256,000 (27,000) -10%
Total Revenues 20,451,423 20,407,562 20,580,389 21,606,073 1,025,684 5%
Expenditures
Operating Programs
Infrastructure & Transportation 9,770,508 11,218,281 11,415,616 11,297,807 (117,809) -1%
Environmental Health & Open Space 2,362,906 2,870,296 2,761,401 2,619,672 (141,729) -5%
Community & Neighborhood Livability 574,006 523,476 531,547 498,540 (33,007) -6%
Fiscal Health & Governance 2,325,922 2,307,785 2,230,068 2,089,014 (141,054) -6%
CalPERS Discount Rate - - 24,414 - (24,414) -100%
Total Operating Programs 15,033,342 16,919,838 16,963,046 16,505,033 (458,013) -3%
Capital Improvement Plan Projects 3,224,351 9,788,023 9,362,100 9,362,100 - 0%
Debt Service 812,097 2,194,005 2,955,652 2,955,652 - 0%
Total Expenditures 19,069,790 28,901,866 29,280,798 28,822,785 (458,013) -2%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out (561,244) (967,599) (1,027,176) (1,027,176) - 0%
Proceeds from Debt Financing - - 8,500,000 8,500,000 - 0%
Projected MOA Adjustments - - - - - 0%
Other Sources (Uses)- - - - - 0%
Expenditure Savings - - - - - 0%
Total Other Sources (Uses)(561,244) (967,599) 7,472,824 7,472,824 - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 820,390 (9,461,903) (1,227,585) 256,112 1,483,697 -121%
Working Capital, Beginning of Year 22,668,725 23,489,115 10,933,455 14,027,212 3,093,757 28%
Working Capital, End of Year 23,489,115 14,027,212 9,705,870 14,283,325 4,577,455 47%
2017 - 19 Financial Plan
% Change Variance
D-27 Pg. 108
CHANGES IN FINANCIAL POSITION
SEWER FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 65,417 50,000 50,000 50,000 - 0%
Service Charges
Ser Customer Sales
ServiceSewer Service Charges 14,363,627 14,302,464 14,741,100 14,838,000 96,900 1%
ServiceSales to Cal Poly 1,063,433 875,000 901,250 908,000 6,750 1%
Ser Development Impact Fees 653,050 430,000 300,000 300,000 - 0%
Ser Account Set-Up Fees 103,445 156,000 156,000 156,000 - 0%
Ser Late Charges and credit card fees 14,481 23,000 23,000 23,000 - 0%
Ser Industrial User Charges 88,331 85,000 85,000 85,000 - 0%
Ser Connection Charges and Meter Sales 52,579 61,000 61,000 61,000 - 0%
Total Service Charges 16,338,946 15,932,464 16,267,350 16,371,000 103,650 1%
Other Revenues 80,753 32,000 34,000 143,516 109,516 322%
Total Revenues 16,485,117 16,014,464 16,351,350 16,564,516 213,166 1%
Expenditures
Operating Programs
Infrastructure & Transportation 938,746 1,126,926 1,142,593 1,127,562 (15,031) -1%
Environmental Health & Open Space 4,130,465 4,963,848 4,973,738 4,855,610 (118,128) -2%
Community & Neighborhood Livability 417,469 7,610 - - - 0%
Fiscal Health & Governance 2,539,091 3,247,334 3,101,507 2,946,891 (154,616) -5%
CalPERS Discount Rate - - 24,713 - (24,713) -100%
Total Operating Programs 8,025,771 9,345,719 9,242,551 8,930,062 (312,489) -3%
Capital Improvement Plan Projects 3,103,439 19,271,398 58,162,000 16,082,583 (42,079,417) -72%
Debt Service 554,054 1,433,709 1,431,006 1,431,006 - 0%
Total Expenditures 11,683,263 30,050,826 68,835,557 26,443,651 (42,391,906) -62%
Other Sources (Uses)
Cashflow adjustment for working capital - - - - - 0%
Operating Transfers In - - - - - 0%
Operating Transfers Out (490,319) (817,715) (901,818) (901,818) - 0%
Proceeds from Debt Financing - - 56,500,000 14,327,203 (42,172,797) -75%
Projected MOA Adjustments - - - - - 0%
Other Sources (Uses)- - - - - 0%
Total Other Sources (Uses)(490,319) (817,715) 55,598,182 13,425,385 (42,172,797) -76%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 4,311,534 (14,854,077) 3,113,975 3,546,250 432,275 14%
Working Capital, Beginning of Year 26,096,921 30,408,455 16,749,946 15,554,378 (1,195,568) -7%
Working Capital, End of Year 30,408,455 15,554,378 19,863,921 19,100,628 (763,293) -4%
2017 - 19 Financial Plan
Variance % Change
D-28 Pg. 109
CHANGES IN FINANCIAL POSITION
WHALE ROCK COMMISSION
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 13,849 1,000 1,000 1,000 - 0%
Service Charges - - 0%
Ser Member Agency Contributions O & M 735,828 808,845 845,179 845,179 - 0%
Ser Member Agency Contributions CIP 404,378 502,105 332,512 332,512 - 0%
Ser Water Distribution Charges 256,056 337,500 351,000 351,000 - 0%
Ser Other Service Charges - - - - - 0%
Total Service Charges & Interest 1,410,111 1,649,450 1,529,691 1,529,691 - 0%
Other Revenues 890 6,000 6,000 6,000 - 0%
Total Revenues 1,411,000 1,655,450 1,535,691 1,535,691 - 0%
Expenditures
Operating Programs
Infrastructure & Transportation 857,965 1,033,617 1,070,745 1,092,746 22,001 2%
Fiscal Health & Governance 122,510 141,937 141,937 141,937 - 0%
Total Operating Programs 980,475 1,175,554 1,212,682 1,234,683 22,001 2%
Capital Improvement Plan Projects 55,205 990,108 36,000 36,000 - 0%
Total Expenditures 1,035,679 2,165,662 1,248,682 1,270,683 22,001 2%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out - (2,210) (15,963) (15,963) - 0%
Other Sources (Uses)- - - - - 0%
Adjust for working capital - - - - - 0%
Total Other Sources (Uses)- (2,210) (15,963) (15,963) - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 375,321 (512,422) 271,046 249,045 (22,001) -8%
Fund Balance, Beginning of Year 48,057 423,378 1,295,601 (89,043) (1,384,644) -107%
Fund Balance, End of Year 423,378 (89,043) 1,566,647 160,002 (1,406,645) -90%
2017 - 19 Financial Plan
Variance % Change
D-29 Pg. 110
CHANGES IN FINANCIAL POSITION
PARKING FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 59,757 43,000 52,000 55,000 3,000 6%
Fines and Forfeitures 530,644 655,000 593,200 617,000 23,800 4%
Service Charges
Ser Parking Meter Collections
ServiceLots 142,057 166,000 141,900 166,000 24,100 17%
ServiceStreets 1,621,061 1,942,000 1,664,700 1,942,300 277,600 17%
Ser Parking Structure Collections 1,336,165 1,843,000 1,504,400 1,842,000 337,600 22%
Ser Long-Term Parking Revenues 810,487 996,000 802,900 994,600 191,700 24%
Ser Lease Revenues 486,256 502,900 509,800 505,000 (4,800) -1%
Ser Parking In-Lieu Fees (184,721) 20,000 20,600 20,600 - 0%
Ser Other Service Charges (88,150) (134,000) (90,000) (125,200) (35,200) 39%
Total Service Charges 4,123,156 5,335,900 4,554,300 5,345,300 791,000 17%
Other Revenues 5,763 100 100 100 - 0%
Total Revenues 4,719,320 6,034,000 5,199,600 6,017,400 817,800 16%
Expenditures
Operating Programs
Infrastructure & Transportation 1,986,426 2,491,340 2,274,025 2,593,681 319,656 14%
Fiscal Health & Governance 684,603 622,189 622,189 535,400 (86,789) -14%
CalPERS Discount Rate - - 6,200 - (6,200) -100%
Total Operating Programs 2,671,029 3,113,529 2,902,414 3,129,081 226,667 8%
Capital Improvement Plan Projects 633,849 2,720,138 650,000 668,900 18,900 3%
Debt Service 486,616 967,372 967,500 967,500 - 0%
Total Expenditures 3,791,493 6,801,040 4,519,914 4,765,481 245,567 5%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out - (157,644) (169,865) (169,865) - 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) (169,865) (169,865) - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 927,826 (924,684) 509,821 1,082,054 572,233 112%
Working Capital, Beginning of Year 24,011,240 24,939,193 10,313,332 24,014,510 13,701,178 133%
Working Capital, End of Year 24,939,066 24,014,510 10,823,153 25,096,564 14,273,411 132%
2017 - 19 Financial Plan
Variance % Change
D-30 Pg. 111
CHANGES IN FINANCIAL POSITION
TRANSIT FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 3,804 5,800 5,800 5,800 - 0%
From Other Governments
Fro TDA Revenues (LTF)1,299,676 1,160,677 1,046,313 1,548,644 502,331 48%
Fro TDA Revenues (STA)127,912 143,846 143,846 287,935 144,089 100%
Fro Other Grants 184,334 257,703 1,060,000 174,600 (885,400) -84%
Fro FTA Grants 2,568,464 1,399,640 1,399,640 1,456,036 56,396 4%
Service Charges 666,116 751,757 799,715 727,878 (71,837) -9%
Other Revenues (182) 8,000 8,000 8,000 - 0%
Total Revenues 4,850,124 3,727,423 4,463,314 4,208,893 (254,421) -6%
Expenditures
Operating Programs
Infrastructure & Transportation 3,128,402 3,429,823 3,554,783 3,673,822 119,039 3%
Fiscal Health & Governance 288,995 319,987 319,987 319,987 - 0%
CalPERS Discount Rate - - 1,884 - (1,884) -100%
Total Operating Programs 3,417,397 3,749,810 3,876,654 3,993,809 117,155 3%
Capital Improvement Plan Projects 659,474 698,435 1,141,570 173,000 (968,570) -85%
Total Expenditures 4,076,870 4,448,245 5,018,224 4,166,809 (851,415) -17%
Other Sources (Uses)
Operating Transfers In - - - - - 0%
Operating Transfers Out - (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) - - - 0%
Revenues and Other Sources Over (Under)
Expenditures and Other Uses 773,254 (782,220) (554,910) 42,083 596,993 -108%
Working Capital, Beginning of Year 2,988,512 3,761,766 1,619,334 2,979,545 1,360,211 84%
Prior Year Restatement
Working Capital, End of Year 3,761,766 2,979,545 1,064,424 3,021,629 1,957,205 184%
2017 - 19 Financial Plan
Variance % Change
D-31 Pg. 112
CHANGES IN FINANCIAL POSITION
BOYSEN RANCH CONSERVATION FUND
Actual Current Budget Original Revised
16-17 17-18 Budget Budget
Revenues
Investment and Property Revenues 3,467 2,000 2,000 2,000 - 0%
Service Charges - - - - - 0%
Total Revenues 3,467 2,000 2,000 2,000 - 0%
Expenditures
Culture & Recreation - 7,500 7,500 7,500 - 0%
Total Expenditures - 7,500 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) (5,500) - 0%
Fund Balance, Beginning of Year 80,117 83,584 78,706 78,084 (622) -1%
Fund Balance, End of Year 83,584 78,084 73,206 72,584 (622) -1%
2017 - 19 Financial Plan
Variance % Change
D-32 Pg. 113
REVTBID
Budget Summary
48 74 74 75
Current Adopted Revised
Actual Budget Budget Budget %
2016-17 2017-18 2018-19 2018-19 Variance Change
GOVERNMENTAL FUNDS
General Fund 59,983,487 62,246,799 62,377,864 62,563,296 185,431 0%
Local Revenue Measure Fund 7,376,456 7,445,096 7,679,000 7,673,084 (5,916) -0.1%
Special Revenue Funds 3,135,057 3,073,010 2,794,000 2,775,467 (18,533) -0.7%
Capital Project Funds 4,650,691 13,733,915 14,122,800 14,122,800 - 0%
Total Governmental Funds 75,145,691 86,498,820 86,973,664 87,134,646 160,982 0%
ENTERPRISE FUNDS & AGENCY FUNDS
Water Fund 20,451,423 20,407,562 20,580,389 21,606,073 1,025,684 5.0%
Sewer Fund 16,485,117 16,014,464 16,351,350 16,564,516 213,166 1.3%
Whale Rock Reservoir Fund 1,411,000 1,655,450 1,535,691 1,535,691 - 0.0%
Parking Fund 4,719,320 6,034,000 5,199,600 6,017,400 817,800 16%
Transit Fund 4,850,124 3,727,423 4,529,339 3,502,800 (1,026,539) -23%
Boysen Ranch Convervation Fund 3,467 2,000 2,000 2,000 - 0%
Total Enterprise Funds 47,920,452 47,840,899 48,198,369 49,228,480 1,030,111 2.14%
TOTAL $123,066,144 $134,339,719 $135,172,033 $136,363,126 1,191,093 0.88%
2017-19 Financial Plan
D-33 Pg. 114
REVTBID
Budget Summary
48 74 74 75
Current Adopted Revised
Actual Budget Budget Budget %
2016-17 2017-18 2018-19 2018-19 Variance Change
2017-19 Financial Plan
GENERAL FUND
Tax & Franchise Revenues
Sales & use tax
General 16,737,007 16,487,213 17,277,000 17,217,036 (59,964) -0.3%
Public safety (Proposition 172) 405,512 436,560 445,291 402,572 (42,719) -9.6%
Property tax 10,756,477 11,145,228 11,607,000 11,665,385 58,385 1%
Property tax in lieu of VLF 4,353,912 4,637,535 4,846,013 4,846,013 - 0%
Transient occupancy tax 7,367,592 7,293,790 7,439,666 7,367,000 (72,666) -1.0%
Utility users tax 5,539,405 5,568,000 5,617,000 5,617,000 - 0%
Franchise fees 1,557,128 1,582,442 1,526,717 1,526,717 - 0%
Business tax certificates 2,372,248 2,746,896 2,884,241 2,884,241 - 0%
Real property transfer tax 332,314 380,878 388,495 388,495 - 0%
Total Tax & Franchise Revenues 49,421,595 50,278,542 52,031,423 51,914,459 (116,964) -0.2%
Fines & Forfeitures
Vehicle code fines 147,850 112,800 112,800 112,800 - 0%
Other fines & forfeitures (8,316) 34,800 34,800 34,800 - 0%
Total Fines & Forfeitures 139,534 147,600 147,600 147,600 - 0%
Investment and Property Revenues
Investment earnings (46,726) 113,082 113,082 113,082 - 0%
Rents & concessions 162,269 151,716 151,716 151,716 - 0%
Total Investment & Property 115,544 264,798 264,798 264,798 - 0%
Subventions & Grants
Motor vehicle in-lieu 20,660 - - - - 0%
Homeowners & other in-lieu taxes 74,912 69,560 69,560 69,560 - 0%
Other in-lieu taxes - 22,000 22,000 22,000 - 0%
SB 90 reimbursements 3,579 - - - - 0%
Police training (POST)9,702 10,000 10,000 10,000 - 0%
Mutual aid reimbursements 787,411 1,500,000 - - - 0%
COPS Grant AB3229 100,000 100,000 100,000 100,000 - 0%
Zone 9 reimbursements - 85,000 85,000 85,000 - 0%
Other state & federal grants 18,596 99,000 99,000 99,000 - 0%
Total Subventions & Grants 1,014,859 1,885,560 385,560 385,560 - 0%
Service Charges
Police Services
Accident reports 2,956 3,350 3,400 3,400 - 0%
Collision investigation 9,352 10,550 10,708 10,708 - 0%
Alarm permits and false alarm fees 129,722 84,400 85,666 100,000 14,334 17%
DUI cost recovery 33,845 21,100 21,417 21,417 - 0%
Tow release fee 13,075 12,660 12,850 12,850 - 0%
Tobacco permit fees 21,628 21,100 21,417 21,417 - 0%
Administrative citations 145,104 121,325 123,145 110,000 (13,145) -11%
Parking citations 64,971 84,400 85,666 84,000 (1,666) -2%
Other police services 199,949 121,719 115,986 242,518 126,532 109%
Total Police Services 620,603 480,604 480,254 606,309 126,056 26%
D-34 Pg. 115
REVTBID
Budget Summary
48 74 74 75
Current Adopted Revised
Actual Budget Budget Budget %
2016-17 2017-18 2018-19 2018-19 Variance Change
2017-19 Financial Plan
Fire Services
Cal Poly fire services 276,125 291,312 295,682 295,682 - 0%
Medical emergency recovery 176,716 182,515 185,253 185,253 - 0%
Fire safety/haz mat permits 136,576 137,150 139,207 100,000 (39,207) -28%
Multi-dwelling unit inspections 194,912 - - 260,000 260,000 0%
CUPA fees 99,559 102,335 103,870 140,000 36,130 35%
Other fire services 25,615 8,440 8,567 8,567 - 0%
Total Fire Services 909,503 721,752 732,578 989,501 256,923 35%
Development Review
Planning & zoning fees 597,831 648,619 406,097 550,000 143,903 35%
Building Permits 1,717,108 1,854,289 1,928,460 1,930,000 1,540 0%
Construction plan check & inspection 854,871 800,000 714,000 836,000 122,000 17%
Infrastructure plan check & inspections 799,796 1,400,000 1,428,000 1,430,000 2,000 0%
Encroachment permits 148,618 244,745 249,640 260,000 10,360 4%
Fire plan check & inspections 431,886 400,000 412,000 370,000 (42,000) -10%
Credit Card Fees (124,932) (116,406) (112,637) (112,637) - 0%
Other Development Fees 960,362 872,631 905,671 607,000 (298,671) -33%
Rental Inspection Fees 151,388 50,000 50,000 - (50,000) -100%
Total Development Review 5,536,927 6,153,878 5,981,231 5,870,363 (110,868) -2%
Parks & Recreation
Adult athletic fees 107,447 135,117 137,820 137,820 - 0%
Youth athletic fees 6,250 37,201 37,945 37,945 - 0%
Skate park fees - 2,208 2,252 2,252 - 0%
Instruction fees 77,271 100,455 102,464 100,000 (2,464) -2%
Special event fees 99,281 103,693 104,378 104,378 - 0%
Rental & use fees 151,562 178,280 181,845 181,845 - 0%
Children services 720,822 662,340 675,587 662,000 (13,587) -2%
Teens & seniors 5,220 1,656 1,689 1,000 (689) -41%
Aquatics 242,014 272,332 277,779 277,779 - 0%
Golf 234,897 322,495 328,945 323,970 (4,975) -2%
Other recreation revenues 12,880 6,623 6,756 6,756 - 0%
Total Parks & Recreation 1,657,645 1,822,400 1,857,460 1,835,745 (21,715) -1%
General Government
Business license 378,665 401,200 407,218 407,218 - 0%
Sales of publications 2,127 2,638 2,677 2,677 - 0%
Other service charges 13,583 20,611 20,865 20,865 - 0%
Total General Government 394,376 424,449 430,760 430,760 - 0%
Total Service Charges 9,119,053 9,603,082 9,482,283 9,732,679 250,396 3%
Other Revenues
Insurance refunds 11,407 28,200 28,200 28,200 - 0%
Other revenues 161,495 39,017 38,000 90,000 52,000 137%
Total Other Revenues 172,902 67,217 66,200 118,200 52,000 79%
Total General Fund 59,983,487 62,246,799 62,377,864 62,563,296 185,431 0.30%
D-35 Pg. 116
REVTBID
Budget Summary
48 74 74 75
Current Adopted Revised
Actual Budget Budget Budget %
2016-17 2017-18 2018-19 2018-19 Variance Change
2017-19 Financial Plan
LOCAL REVENUE MEASURE FUND
Measure G 7,331,660 7,445,096 7,679,000 7,673,084 (5,916) -0.1%
Investment & Property Revenues 44,796 - - - - 0%
Total Local Revenue Measure Fund 7,376,456 7,445,096 7,679,000 7,673,084 (5,916) -0.1%
SPECIAL REVENUE FUNDS
Downtown Business Improvement District Fund
Service Charges 225,894 227,000 227,000 227,000 - 0%
Other Revenues - - - - - 0%
Total Downtown BID Fund 225,894 227,000 227,000 227,000 - 0%
Tourism Business Improvement District Fund
Investment & Property Revenues 2,744 1,400 1,400 1,400 - 0%
Service Charges 1,478,345 1,464,387 1,493,675 1,473,000 (20,675) -1%
Other Revenue - - - - - 0%
Total Tourism BID Fund 1,481,089 1,465,787 1,495,075 1,474,400 (20,675) -1%
Community Development Block Grant Fund
Investment & Property Revenues - - - - - 0%
Subventions & Grants 187,100 232,623 - - - 0%
Other Revenues - - - - - 0%
Total Community Development Block Grant Fund 187,100 232,623 - - - 0%
Gas Tax Fund
Subventions & Grants 913,428 965,000 965,000 965,000 - 0%
Total Gas Tax Fund 913,428 965,000 965,000 965,000 - 0%
Transportation Development Act Fund
Subventions & Grants 40,501 45,000 45,000 45,000 - 0%
Total Transportation Development Act Fund 40,501 45,000 45,000 45,000 - 0%
Law Enforcement Grant Fund
Investment & Property Revenues - - - - - 0%
Subventions & Grants 141,359 100,000 21,325 21,325 - 0%
Service Charges 2,523 - - 2,142 2,142 0%
Total Law Enforcement Grant Fund 143,882 100,000 21,325 23,467 2,142 10%
Public Art Contributions Fund
Investment & Property Revenues 4,294 2,100 2,100 2,100 - 0%
Other Revenues 138,869 35,500 38,500 38,500 - 0%
Total Public Art Contributions Fund 143,162 37,600 40,600 40,600 - 0%
Total Special Revenue Funds 3,135,057 3,073,010 2,794,000 2,775,467 (18,533) -1%
D-36 Pg. 117
REVTBID
Budget Summary
48 74 74 75
Current Adopted Revised
Actual Budget Budget Budget %
2016-17 2017-18 2018-19 2018-19 Variance Change
2017-19 Financial Plan
CAPITAL PROJECT FUNDS
General Purpose CIP
Subventions & Grants
State of California
Traffic safety grant - - - - - 0%
Safe routes to school grant - - - - - 0%
SLTPP/STP grant - - - - - 0%
STP/SHA - RRTC 125,567 - - - - 0%
Other state grants - - - - - 0%
Federal Government
Highway & 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 13,296,115 13,705,000 13,705,000 - 0%
Total General Purpose CIP 293,664 13,296,115 13,705,000 13,705,000 - 0%
Parkland Development Fund
Investment & Property Revenues 16,450 3,900 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 3,900 - 0%
Transportation Impact Fee Fund
Investment & Property Revenues (7,641) 46,000 46,000 46,000 - 0%
Subventions & Grants - - - - - 0%
Impact Fees 1,615,385 250,000 250,000 250,000 - 0%
Other Revenues - - - - - 0%
Total Transportation Impact Fee Fund 1,607,744 296,000 296,000 296,000 - 0%
Fleet Replacement Fund
Investment & Property Revenues 10,898 10,000 10,000 10,000 - 0%
Sale of surplus property 137,034 40,000 80,000 80,000 - 0%
Green Vehicle Rebates 9,000 - - - - 0%
Total Fleet Replacement Fund 156,932 50,000 90,000 90,000 - 0%
D-37 Pg. 118
REVTBID
Budget Summary
48 74 74 75
Current Adopted Revised
Actual Budget Budget Budget %
2016-17 2017-18 2018-19 2018-19 Variance Change
2017-19 Financial Plan
CAPITAL PROJECT FUNDS
Open Space Protection Fund
Investment & 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 Fund
Investment & Property Revenues 9,577 5,000 5,000 5,000 - 0%
Service Charges 24,437 - - - - 0%
Total Airport Area Impact Fee Fund 34,014 5,000 5,000 5,000 - 0%
Affordable Housing Fund
Investment & Property Revenues 5,246 14,000 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 14,000 - 0%
Los Osos Valley Road Sub-Area Fee Fund
Investment & Property Revenues 5,946 1,700 1,700 1,700 - 0%
Service Charges 422,858 - - - - 0%
Total LOVR Sub-Area Fee Fund 428,804 1,700 1,700 1,700 - 0%
Information Technology Replacement Fund
Investment & Property Revenues 27,552 5,000 5,000 5,000 - 0%
Subventions & Grants - 60,000 - - - 0%
Total IT Replacement Fund 27,552 65,000 5,000 5,000 - 0%
Major Facility Replacement Fund
Investment & Property Revenues 6,537 1,300 1,300 1,300 - 0%
Service Charges - - - - - 0%
Total Maror Facility Replacement Fund 6,537 1,300 1,300 1,300 - 0%
Infrastructure Investment Fund
Investment & Property Revenues 2,728 900 900 900 - 0%
Total Infrastructure Investment Fund 2,728 900 900 900 - 0%
Total Capital Project Funds 4,650,691 13,733,915 14,122,800 14,122,800 - 0%
TOTAL-GOVERNMENTAL FUNDS 75,145,691 86,498,820 86,973,664 87,134,646 160,982 0%
D-38 Pg. 119
REVTBID
Budget Summary
48 74 74 75
Current Adopted Revised
Actual Budget Budget Budget %
2016-17 2017-18 2018-19 2018-19 Variance Change
2017-19 Financial Plan
ENTERPRISE & AGENCY FUNDS
Water Fund
Investment & Property Revenues 67,445 50,000 50,000 50,000 - 0%
Impact Fees 1,266,674 1,200,000 1,212,000 800,000 (412,000) -34%
Service Charges 18,512,366 19,125,562 19,012,389 20,500,073 1,487,684 8%
Development Review Fees - - - 200,000 200,000 0%
Other Revenues 604,939 32,000 306,000 56,000 (250,000) -82%
Total Water Fund 20,451,423 20,407,562 20,580,389 21,606,073 1,025,684 5%
Sewer Fund
Investment & Property Revenues 65,417 50,000 50,000 50,000 - 0%
Impact Fees 653,050 430,000 300,000 300,000 - 0%
Service Charges 15,687,346 15,502,464 15,967,350 16,071,000 103,650 1%
Development Review Fees - - - 100,000 100,000 0%
Other Revenues 79,303 32,000 34,000 43,516 9,516 28%
Total Sewer Fund 16,485,117 16,014,464 16,351,350 16,564,516 213,166 1%
Whale Rock Commission
Investment & Property Revenues 13,849 1,000 1,000 1,000 - 0%
Service Charges 1,396,409 1,648,450 1,528,691 1,528,691 - 0%
Other Revenues 743 6,000 6,000 6,000 - 0%
Total Whale Rock Commission Fund 1,411,000 1,655,450 1,535,691 1,535,691 - 0%
Parking Fund
Investment & Property Revenues 59,757 43,000 52,000 55,000 3,000 6%
Fines & Forfeitures 530,644 655,000 593,200 617,000 23,800 4%
Service Charges 3,636,900 4,833,000 4,044,500 4,840,300 795,800 20%
Lease Revenue 486,256 502,900 509,800 505,000 (4,800) -1%
Other Revenues 5,763 100 100 100 - 0%
Total Parking Fund 4,719,320 6,034,000 5,199,600 6,017,400 817,800 16%
Transit Fund
Investment & Property Revenues 3,804 5,800 5,800 5,800 - 0%
Subventions & Grants 4,180,386 2,961,866 3,805,758 2,817,000 (988,758) -26%
Service Charges 666,116 751,757 711,181 674,000 (37,181) -5%
Other Revenues (182) 8,000 6,600 6,000 (600) -9%
Total Transit Fund 4,850,124 3,727,423 4,529,339 3,502,800 (1,026,539) -23%
Boysen Ranch Conservation Fund
Investment & Property Revenues 3,467 2,000 2,000 2,000 - 0%
Total Boysen Ranch Fund 3,467 2,000 2,000 2,000 - 0%
Total Enterprise & Agency Funds 47,920,452 47,840,899 48,198,369 49,228,480 1,030,111 2.14%
TOTAL - ALL FUNDS 123,066,144 134,339,719 135,172,033 136,363,126 1,191,093 0.88%
D-39 Pg. 120
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
Actual Original Revised
2016-17 Budget Budget Variance
General Fund
Operating Transfers In
Insurance Benefit - - - -
Downtown Business Improvement District Fund - - - -
Tourism Business Improvement District Fund 28,868 28,679 28,679 -
Community Development Block Grant (CDBG) Fund - - - -
Gas Tax Fund 913,428 965,000 965,000 -
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 - - - -
Transportation Impact Fee Fund - 250,000 250,000 -
Open Space Protection Fund - - - -
Airport Area Impact Fee Fund - - - -
Affordable Housing Fund - - 17,000 (17,000)
Los Osos Valley Road Sub-Area Fee Fund - - - -
Infrastructure Investment Fund - - - -
Debt Service Fund - - - -
Water Fund 561,244 1,027,176 1,027,176 -
Sewer Fund 490,319 901,818 901,818 -
Whale Rock Commission - - - -
Parking Fund - 169,865 169,865 -
Transit Fund - - - -
Boysen Ranch Conservation Fund - - - -
General Agency Fund 65,893 - - -
Total Operating Transfers In 2,109,723 3,387,538 3,404,538 (17,000)
Operating Transfers Out
Insurance Benefit (1,739,898) (500,000) (500,000) -
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) (257,400) (257,400) -
Parkland Development Fund (900,000) - - -
Infrastructure & Transportation Impact Fee Fund - - - -
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) (1,350,967) (1,350,967) -
Major Facility Replacement (514,025) (593,200) (593,200) -
Infrastructure Investment Fund - - (250,000) 250,000
Debt Service Fund (3,245,866) (3,506,208) (3,185,500) (320,708)
Water Fund - - - -
Sewer Fund - - - -
Whale Rock Commission - - - -
Parking Fund - - - -
Transit Fund - - - -
Boysen Ranch Conservation Fund - - - -
Total Operating Transfers Out (9,614,658) (6,361,775) (6,291,067) (70,708)
Net Operating Transfers (7,504,935) (2,974,237) (2,886,529) (87,708)
2018-19
D-40 Pg. 121
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
Actual Original Revised
2016-17 Budget Budget Variance
2018-19
Local Revenue Measure Sub-Fund
Operating Transfers In
Major Facility Replacement 483,900 483,900 -
Information Technology 536,500 536,500 -
Fleet Replacement - 638,000 638,000 -
Total Transfers In - 1,658,400 1,658,400 -
Operating Transfers Out
Major Facility Replacement (483,900) (483,900) -
Information Technology (536,500) (536,500) -
Fleet Replacement - (768,000) (768,000) -
Total Transfers Out - (1,788,400) (1,788,400) -
Net Operating Transfers - (130,000) (130,000) -
Insurance Benefit
Operating Transfers In
General Fund 1,739,898 500,000 500,000 -
Total Transfers In 1,739,898 500,000 500,000 -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers 1,739,898 500,000 500,000 -
Downtown Business Improvement District Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers - - - -
Tourism Business Improvement District Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund (28,868) (28,679) (28,679) -
Total Transfers Out (28,868) (28,679) (28,679) -
Net Operating Transfers (28,868) (28,679) (28,679) -
Community Development Block Grant (CDBG) Fund
Operating Transfers In
General Fund 153,969 154,000 154,000 -
Total Transfers In 153,969 154,000 154,000 -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers 153,969 154,000 154,000 -
D-41 Pg. 122
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
Actual Original Revised
2016-17 Budget Budget Variance
2018-19
Gas Tax Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General 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) -
Transportation Development Act (TDA) Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General 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) Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers - - - -
General Purpose CIP
Operating Transfers In
General Fund 439,900 257,400 257,400 -
Total Transfers In 439,900 257,400 257,400 -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers 439,900 257,400 257,400 -
Parkland Development Fund
Operating Transfers In
General Fund 900,000 - - -
Total Transfers In 900,000 - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers 900,000 - - -
Transportation Impact Fee Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
D-42 Pg. 123
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
Actual Original Revised
2016-17 Budget Budget Variance
2018-19
Operating Transfers Out
General Fund - (250,000) (250,000) -
Total Transfers Out - (250,000) (250,000) -
Net Operating Transfers - (250,000) (250,000) -
Fleet Replacement Fund
Operating Transfers In
General Agency Fund 25,995 - - -
Local Revenue Measure - 768,000 768,000 -
Total Transfers In 25,995 768,000 768,000 -
Operating Transfers Out
Debt Service Fund - (130,000) (130,000) -
Local Revenue Measure (60) (638,000) (638,000) -
Total Transfers Out (60) (768,000) (768,000) -
Net Operating Transfers 25,934 - - -
Open Space Protection Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers - - - -
Airport Area Impact Fee Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers - - - -
Affordable Housing Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers - - - -
Los Osos Valley Road Sub-Area Fee Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
D-43 Pg. 124
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
Actual Original Revised
2016-17 Budget Budget Variance
2018-19
Net Operating Transfers - - - -
Information Technology Replacement
Operating Transfers In
General Fund 2,621,000 1,350,967 1,350,967 -
Local Revenue Measure Sub-Fund - 536,500 536,500 -
Parking Enterprise Fund - 6,633 6,633 -
Sewer Enterprise Fund - 14,923 14,923 -
Transit Enterprise Fund - 3,317 3,317 -
Water Enterprise Fund - 22,662 22,662 -
Whale Rock Enterprise Fund - 2,210 2,210 -
Total Transfers In 2,621,000 1,937,212 1,937,212 -
Operating Transfers Out
Local Revenue Measure Sub-Fund - (536,500) (536,500) -
Total Transfers Out - (536,500) (536,500) -
Net Operating Transfers 2,621,000 1,400,712 1,400,712 -
Major Facility Replacement
Operating Transfers In
General Fund 514,025 593,200 593,200 -
General Purpose CIP - - -
Local Revenue Measure Sub-Fund 483,900 483,900 -
Water Enterprise Fund 3,600 3,600 -
Sewer Enterprise Fund 3,600 3,600 -
Total Transfers In 514,025 1,084,300 1,084,300 -
Operating Transfers Out
Local Revenue Measure Sub-Fund - (483,900) (483,900) -
Total Transfers Out - (483,900) (483,900) -
Net Operating Transfers 514,025 600,400 600,400 -
Infrastructure Investment Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers - - - -
Debt Service Fund
Operating Transfers In
General Fund 3,245,866 3,506,208 3,506,208 -
Fleet Replacement Fund - 130,000 130,000 -
Total Transfers In 3,245,866 3,636,208 3,636,208 -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers 3,245,866 3,636,208 3,636,208 -
D-44 Pg. 125
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
Actual Original Revised
2016-17 Budget Budget Variance
2018-19
Water Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund (561,244) (1,027,176) (1,027,176) -
Major Facilities Replacement Fund - (3,600) (3,600) -
Information Technology Replacement Fund - (22,662) (22,662) -
Total Transfers Out (561,244) (1,053,438) (1,053,438) -
Net Operating Transfers (561,244) (1,053,438) (1,053,438) -
Sewer Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund (490,319) (901,818) (901,818) -
Major Facilities Replacement Fund - (3,600) (3,600) -
Information Technology Replacement Fund - (14,923) (14,923) -
Total Transfers Out (490,319) (920,341) (920,341) -
Net Operating Transfers (490,319) (920,341) (920,341) -
Whale Rock Commission
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
Information Technology Replacement Fund - (2,210) (2,210) -
Total Transfers Out - (2,210) (2,210) -
Net Operating Transfers - (2,210) (2,210) -
Parking Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - (169,865) (169,865) -
Information Technology Replacement Fund - (6,633) (6,633) -
Total Transfers Out - (176,498) (176,498) -
Net Operating Transfers - (176,498) (176,498) -
Transit Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Information Technology Replacement Fund (3,317) (3,317) -
Total Transfers Out - (6,634) (3,317) (3,317)
Net Operating Transfers - (6,634) (3,317) (3,317)
D-45 Pg. 126
INTERFUND TRANSACTIONS
OPERATING TRANSFERS
Actual Original Revised
2016-17 Budget Budget Variance
2018-19
Boysen Ranch Conservation Fund
Operating Transfers In
General Fund - - - -
Total Transfers In - - - -
Operating Transfers Out
General Fund - - - -
Total Transfers Out - - - -
Net Operating Transfers - - - -
NET OPERATING TRANSFERS 7,606,233 2,970,920 2,974,237 (3,317)
D-46 Pg. 127
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - ALL DEPARTMENTS
Actual Current Budget Adopted Revised
ALL DEPARTMENTS 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 58,318,749 62,751,757 64,022,192 65,811,011 3%
Contract Services 21,320,979 26,812,713 21,695,103 21,422,151 -1%
Other Operating Expenditures 12,052,934 14,961,116 15,298,863 14,776,556 -3%
Minor Capital 266,874 377,586 70,900 70,900 0%
TOTAL $91,959,536 $104,903,171 101,087,058 $102,080,619 1%
2018-19 Operating Budget: $106.3 Million
2018 - 19 Financial Plan
64%
21%
15%
0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-47 Pg. 128
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY FUNCTION - GENERAL AND LRM FUNDS
Actual Current Budget Adopted Revised
2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 28,104,081 32,396,209 32,394,244 31,772,623 -2%
Infrastructure & Transportation 10,482,258 10,198,619 11,974,763 11,307,026 -6%
Culture & Recreation 3,506,780 6,475,972 3,851,083 3,687,670 -4%
Environmental Health & Open Space 874,057 1,847,292 1,196,643 1,107,516 -7%
Community & Neighborhood Livability 8,834,808 6,179,608 8,169,512 8,802,413 8%
Fiscal Health & Governance 11,275,461 14,758,205 13,771,029 13,235,933 -4%
TOTAL $63,077,445 $71,855,905 $71,357,274 $69,913,182 -2%
2018-19 Operating Budget: $69.9 Million
2018 - 19 Financial Plan
45%
16%5%
2%
13%
19%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-48 Pg. 129
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - PUBLIC WORKS
Actual Current Budget Adopted Revised
PUBLIC WORKS 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 883,403 973,897 1,012,903 1,655,100 63%
Infrastructure & Transportation 12,312,223 14,160,026 13,903,816 13,801,651 -1%
Culture & Recreation 84,249 78,657 0 84,563 0%
Environmental Health & Open Space 0 0 0 0 0%
Community & Neighborhood Livability 2,917,101 3,275,648 3,377,658 3,460,870 2%
Fiscal Health & Governance 956,918 1,053,822 1,047,787 1,004,002 -4%
TOTAL $17,153,895 $19,542,050 $19,342,165 $20,006,186 3%
2018-19 Operating Budget: $20 Million
2018 - 19 Financial Plan
8%
69%
1%0%
17%
5%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-49 Pg. 130
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - PUBLIC WORKS
Actual Current Budget Adopted Revised
PUBLIC WORKS 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 9,334,578 10,170,892 10,553,065 11,544,587 9%
Contract Services 4,597,591 5,457,397 4,735,135 4,713,135 0%
Other Operating Expenditures 3,221,632 3,838,760 4,053,964 3,748,464-8%
Minor Capital 94 75,000 0 0 0%
TOTAL $17,153,895 $19,542,050 19,342,165 $20,006,186 3%
2018-19 Operating Budget: $20 Million
2018 - 19 Financial Plan
58%23%
19%
0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-50 Pg. 131
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - COMMUNITY DEVELOPMENT
Actual Current Budget Adopted Revised
COMMUNITY DEVELOPMENT 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 0 0 0 0 0%
Infrastructure & Transportation 0 0 0 0 0%
Culture & Recreation 0 0 0 0 0%
Environmental Health & Open Space 0 0 0 0 0%
Community & Neighborhood Livability 6,046,966 7,336,005 4,692,405 5,191,733 11%
Fiscal Health & Governance 31,328 46,954 51,728 55,440 7%
TOTAL $6,078,294 $7,382,959 $4,744,133 $5,247,173 11%
2018-19 Operating Budget: $5.2 Million
2018 - 19 Financial Plan
99%
1%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-51 Pg. 132
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - COMMUNITY DEVELOPMENT
Actual Current Budget Adopted Revised
COMMUNITY DEVELOPMENT 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 4,617,006 5,215,868 4,327,228 4,840,918 12%
Contract Services 1,320,718 2,020,925 322,250 313,100 -3%
Other Operating Expenditures 100,540 106,136 94,655 93,155 -2%
Minor Capital 40,030 40,030 0 0 0%
TOTAL $6,078,294 $7,382,959 4,744,133 $5,247,173 11%
2018-19 Operating Budget: $5.2 Million
2018 - 19 Financial Plan
92%
6%
2%0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-52 Pg. 133
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - HUMAN RESOURCES
Actual Current Budget Adopted Revised
HUMAN RESOURCES 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 0 0 0 0 0%
Infrastructure & Transportation 0 0 0 0 0%
Culture & Recreation 0 0 0 0 0%
Environmental Health & Open Space 0 0 0 0 0%
Community & Neighborhood Livability 0 0 259,652 249,800 -4%
Fiscal Health & Governance 5,120,314 6,192,753 5,860,373 5,739,285 -2%
TOTAL $5,120,314 $6,192,753 $6,120,025 $5,989,085 -2%
2018-19 Operating Budget: $6 Million
2018 - 19 Financial Plan
4%
96%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-53 Pg. 134
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - HUMAN RESOURCES
Actual Current Budget Adopted Revised
HUMAN RESOURCES 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 1,838,156 1,805,429 957,073 944,142 -1%
Contract Services 315,594 810,142 530,852 519,000 -2%
Other Operating Expenditures 2,966,564 3,577,182 4,632,100 4,525,943-2%
Minor Capital 0 0 0 0 0%
TOTAL $5,120,314 $6,192,753 6,120,025 $5,989,085 -2%
2018-19 Operating Budget: $6 Million
2018 - 19 Financial Plan
16%
9%
75%
0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-54 Pg. 135
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - UTILITIES
Actual Current Budget Adopted Revised
UTILITIES 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 0 0 0 0 0%
Infrastructure & Transportation 11,567,218 13,290,917 13,643,166 13,518,115 -1%
Culture & Recreation 0 0 0 0 0%
Environmental Health & Open Space 6,493,371 7,993,511 7,758,593 7,475,282 -4%
Community & Neighborhood Livability 991,475 1,399,890 533,938 498,540 -7%
Fiscal Health & Governance 1,796,550 2,504,014 2,160,125 2,154,671 0%
TOTAL $20,848,614 $25,188,332 $24,095,822 $23,646,607 -2%
2018-19 Operating Budget: $23.6 Million
2018 - 19 Financial Plan
0%
57%
0%
32%
2%
9%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-55 Pg. 136
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - UTILITIES
Actual Current Budget Adopted Revised
UTILITIES 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 8,061,729 9,031,113 9,416,483 9,147,268 -3%
Contract Services 9,744,893 11,886,061 10,823,134 10,723,134 -1%
Other Operating Expenditures 2,978,216 4,204,662 3,828,705 3,748,705-2%
Minor Capital 63,777 66,496 27,500 27,500 0%
TOTAL $20,848,614 $25,188,332 24,095,822 $23,646,607 -2%
2018-19 Operating Budget: $23.6 Million
2018 - 19 Financial Plan
39%
45%
16%
0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-56 Pg. 137
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - POLICE PROTECTION
Actual Current Budget Adopted Revised
POLICE PROTECTION 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 15,519,262 16,530,775 17,121,976 17,436,835 2%
Infrastructure & Transportation 0 0 0 0 0%
Culture & Recreation 0 0 0 0 0%
Environmental Health & Open Space 0 0 0 0 0%
Community & Neighborhood Livability 0 0 0 0 0%
Fiscal Health & Governance 0 0 0 0 0%
TOTAL $15,519,262 $16,530,775 $17,121,976 $17,436,835 2%
2018-19 Operating Budget: $17.4 Million
2018 - 19 Financial Plan
100%
0%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-57 Pg. 138
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - POLICE PROTECTION
Actual Current Budget Adopted Revised
POLICE PROTECTION 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 14,409,232 15,328,819 16,026,066 16,372,875 2%
Contract Services 539,408 593,597 638,270 618,870 -3%
Other Operating Expenditures 467,451 503,978 453,240 440,690 -3%
Minor Capital 103,172 104,381 4,400 4,400 0%
TOTAL $15,519,262 $16,530,775 17,121,976 $17,436,835 2%
2018-19 Operating Budget: $17.4 Million
2018 - 19 Financial Plan
94%
4%2%0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-58 Pg. 139
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - PARKS & RECREATION
Actual Current Budget Adopted Revised
PARKS & RECREATION 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 0 0 0 0 0%
Infrastructure & Transportation 0 0 0 0 0%
Culture & Recreation 2,707,610 2,820,951 2,926,196 2,871,542 -2%
Environmental Health & Open Space 481,340 486,574 696,650 701,720 1%
Community & Neighborhood Livability 0 0 0 0 0%
Fiscal Health & Governance 731,561 785,956 801,410 759,597 -5%
TOTAL $3,920,511 $4,093,481 $4,424,256 $4,332,859 -2%
2018-19 Operating Budget: $4.3 Million
2018 - 19 Financial Plan
0%0%
66%
16%
0%18%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-59 Pg. 140
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - PARKS & RECREATION
Actual Current Budget Adopted Revised
PARKS & RECREATION 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 3,220,566 3,343,383 3,685,371 3,602,274 -2%
Contract Services 222,934 237,696 229,225 224,925 -2%
Other Operating Expenditures 461,425 496,602 492,660 488,660 -1%
Minor Capital 15,586 15,800 17,000 17,000 0%
TOTAL $3,920,511 $4,093,481 4,424,256 $4,332,859 -2%
2018-19 Operating Budget: $4.3 Million
2018 - 19 Financial Plan
83%
5%
11%
1%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-60 Pg. 141
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - FINANCE
Actual Current Budget Adopted Revised
FINANCE 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 0 0 0 0 0%
Infrastructure & Transportation 0 0 0 0 0%
Culture & Recreation 0 0 0 0 0%
Environmental Health & Open Space 0 0 0 0 0%
Community & Neighborhood Livability 0 0 0 0 0%
Fiscal Health & Governance 2,432,016 3,680,281 3,506,651 3,755,605 7%
TOTAL $2,432,016 $3,680,281 $3,506,651 $3,755,605 7%
2018-19 Operating Budget: $3.8 Million
2018 - 19 Financial Plan
0%
100%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-61 Pg. 142
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - FINANCE
Actual Current Budget Adopted Revised
FINANCE 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 1,603,225 2,402,689 2,483,668 2,782,822 12%
Contract Services 586,935 936,037 874,450 824,250 -6%
Other Operating Expenditures 197,639 265,677 126,533 126,533 0%
Minor Capital 44,217 75,879 22,000 22,000 0%
TOTAL $2,432,016 $3,680,281 3,506,651 $3,755,605 7%
2018-19 Operating Budget: $3.8 Million
2018 - 19 Financial Plan
74%
22%
3%1%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-62 Pg. 143
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - CITY ATTORNEY
Actual Current Budget Adopted Revised
CITY ATTORNEY 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 0 0 0 0 0%
Infrastructure & Transportation 0 0 0 0 0%
Culture & Recreation 0 0 0 0 0%
Environmental Health & Open Space 0 0 0 0 0%
Community & Neighborhood Livability 0 0 0 0 0%
Fiscal Health & Governance 1,051,513 1,400,948 809,229 813,370 1%
TOTAL $1,051,513 $1,400,948 $809,229 $813,370 1%
2018-19 Operating Budget: $0.8 Million
2018 - 19 Financial Plan
0%
100%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-63 Pg. 144
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - CITY ATTORNEY
Actual Current Budget Adopted Revised
CITY ATTORNEY 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 648,246 644,154 750,269 765,710 2%
Contract Services 387,220 737,964 37,600 31,100 -17%
Other Operating Expenditures 16,047 18,830 21,360 16,560 -22%
Minor Capital 0 0 0 0 0%
TOTAL $1,051,513 $1,400,948 809,229 $813,370 1%
2018-19 Operating Budget: $0.8 Million
2018 - 19 Financial Plan
94%
4%2%0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-64 Pg. 145
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - ADMINISTRATION
Actual Current Budget Adopted Revised
ADMINISTRATION 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 0 0 0 0 0%
Infrastructure & Transportation 3,242,654 3,387,553 3,340,724 3,191,112 -4%
Culture & Recreation 714,921 735,754 741,970 739,065 0%
Environmental Health & Open Space 392,717 392,467 407,239 405,796 0%
Community & Neighborhood Livability 0 0 0 0 0%
Fiscal Health & Governance 3,381,983 3,985,690 3,533,217 3,464,715 -2%
TOTAL $7,732,275 $8,501,464 $8,023,150 $7,800,688 -3%
2018-19 Operating Budget: $7.8 Million
2018 - 19 Financial Plan
0%
41%
10%5%
0%
44%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-65 Pg. 146
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - ADMINISTRATION
Actual Current Budget Adopted Revised
ADMINISTRATION 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 3,599,870 3,830,437 3,852,033 3,709,171 -4%
Contract Services 3,055,474 3,484,051 3,066,497 2,987,997 -3%
Other Operating Expenditures 1,076,931 1,186,976 1,104,620 1,103,5200%
Minor Capital 0 0 0 0 0%
TOTAL $7,732,275 $8,501,464 8,023,150 $7,800,688 -3%
2018-19 Operating Budget: $7.8 Million
2018 - 19 Financial Plan
48%
38%
14%
0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-66 Pg. 147
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - FIRE PROTECTION
Actual Current Budget Adopted Revised
FIRE PROTECTION 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 11,780,276 12,062,833 12,602,001 12,724,783 1%
Infrastructure & Transportation 42,208 56,746 38,805 38,805 0%
Culture & Recreation 0 0 0 0 0%
Environmental Health & Open Space 0 0 0 0 0%
Community & Neighborhood Livability 0 0 0 0 0%
Fiscal Health & Governance 0 0 0 0 0%
TOTAL $11,822,484 $12,119,579 $12,640,806 $12,763,588 1%
2018-19 Operating Budget: $12.8 Million
2018 - 19 Financial Plan
100%
0%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-67 Pg. 148
BUDGET GRAPHICS AND SUMMARIES
OPERATING PROGRAM EXPENDITURES BY TYPE - FIRE PROTECTION
Actual Current Budget Adopted Revised
FIRE PROTECTION 2016-17 2017-18 2018-19 2018-19 % Change
Staffing 10,971,355 10,964,372 11,939,090 12,078,072 1%
Contract Services 295,875 415,393 210,690 223,690 6%
Other Operating Expenditures 555,254 739,813 491,026 461,826 -6%
Minor Capital 0 0 0 0 0%
TOTAL $11,822,484 $12,119,579 12,640,806 $12,763,588 1%
2018-19 Operating Budget: $12.8 Million
2018 - 19 Financial Plan
95%
2%3%0%
Staffing Contract Services Other Operating Expenditures Minor Capital
D-68 Pg. 149
BUDGET GRAPHICS AND SUMMARIES
TOTAL EXPENDITURES BY TYPE - ALL FUNDS COMBINED
OPERATING PROGRAM EXPENDITURES BY DEPARTMENT - ALL DEPARTMENTS
Actual Current Budget Adopted Revised
ALL DEPARTMENTS 2016-17 2017-18 2018-19 2018-19 % Change
Community Safety 28,182,941 32,496,354 32,394,244 31,816,719 -2%
Infrastructure & Transportation 27,164,304 29,498,607 31,432,525 30,549,682 -3%
Culture & Recreation 3,506,780 6,483,472 3,858,583 3,695,170 -4%
Environmental Health & Open Space 7,367,428 9,681,436 8,931,782 8,582,798 -4%
Community & Neighborhood Livability 9,955,543 6,903,105 8,900,042 9,400,943 6%
Fiscal Health & Governance 19,899,227 24,238,198 22,816,735 22,238,320 -3%
TOTAL $96,076,223 $109,301,173 $108,333,911 $106,283,631 -2%
2018-19 Operating Budget: $106.3 Million
2018 - 19 Financial Plan
30%
29%
3%
8%
9%
21%
Community Safety Infrastructure & Transportation
Culture & Recreation Environmental Health & Open Space
Community & Neighborhood Livability Fiscal Health & Governance
D-69 Pg. 150
OPERATING PROGRAMS
AUTHORIZED FULL-TIME EQUIVALENT STAFFING BY DEPARTMENT
Revised
DEPARTMENT & PROGRAM 2016-17 2017-18 2018-19 2018-19
CITY ADMINISTRATION 25.00 25.00 25.00 26.25
CITY ATTORNEY'S OFFICE 3.00 3.00 3.00 3.00
COMMUNITY DEVELOPMENT 36.00 32.40 31.90 32.90
FINANCE 12.50 12.50 12.50 12.50
FIRE 57.00 57.00 57.00 57.00
HUMAN RESOURCES 5.00 5.00 5.00 5.00
PARKS & RECREATION 18.00 18.00 18.00 18.00
POLICE 86.50 85.50 85.50 85.50
PUBLIC WORKS 84.30 84.30 84.30 84.30
UTILITIES 69.10 69.10 69.10 69.10
TOTAL 396.40 391.80 391.30 393.55
2017-19 Financial Plan
CITY ADMINISTRATION 7%
CITY ATTORNEY'S OFFICE 1%
COMMUNITY
DEVELOPMENT 8%
FINANCE 3%
FIRE 14%
HUMAN RESOURCES 1%
PARKS & RECREATION 5%
POLICE 22%
PUBLIC WORKS 21%
UTILITIES 18%
PERCENT OF TOTAL BY DEPARTMENT
D-70 Pg. 151
OPERATING PROGRAMS
AUTHORIZED FULL-TIME EQUIVALENT STAFFING BY DEPARTMENT
Revised
DEPARTMENT & PROGRAM 2016-17 2017-18 2018-19 2018-19
2017-19 Financial Plan
CITY ADMINISTRATION 25.00 25.00 25.00 26.25
Administration & Records 5.00 5.00 5.00 5.00
City Administration 4.00 4.00 4.00 4.00
Community Promotion 0.25 0.25 0.25 0.25
Economic Development 1.00 1.00 1.00 1.00
Natural Resource Protection 2.00 2.00 2.00 2.00
Tourism and Bid Promotion 1.75 1.75 1.75 1.75
IT Geographic Info Services 3.00 4.00 4.00 4.25
IT Support Services 0.00 2.00 2.00 3.00
IT Network Services 8.00 5.00 5.00 5.00
CITY ATTORNEY'S OFFICE 3.00 3.00 3.00 3.00
City Attorney 3.00 3.00 3.00 3.00
COMMUNITY DEVELOPMENT 36.00 32.40 31.90 32.90
Building And Safety 13.00 13.50 13.00 14.00
Community Development Administration 5.00 5.00 5.00 5.00
Development Review 5.00 9.90 9.90 9.90
Development Services 0.00 0.00 0.00 0.00
Engineering Development Review 5.00 0.00 0.00 0.00
Commissions & Committees 0.00 0.00 0.00 0.00
Long Range Planning 3.00 3.00 3.00 3.50
Housing Assistance 1.00 1.00 1.00 0.50
Rental Housing Inspection 4.00 0.00 0.00 0.00
FINANCE 12.50 12.50 12.50 12.50
Accounting 6.30 4.80 4.80 4.80
Budgets 0.00 1.20 1.20 1.20
Financial Administration 3.50 2.50 2.50 2.50
Purchasing 0.00 1.70 1.70 2.00
Revenue Management 2.70 2.30 2.30 2.00
FIRE 57.00 57.00 57.00 57.00
Emergency Response 45.00 45.00 45.00 45.00
Fire Administration 4.00 4.00 4.00 4.00
Fire Apparatus Services 2.00 2.00 2.00 2.00
Hazard Prevention 6.00 6.00 6.00 6.00
HUMAN RESOURCES 5.00 5.00 5.00 5.00
Human Resources 3.70 5.00 5.00 5.00
Risk Management 1.30 0.00 0.00 0.00
PARKS & RECREATION 18.00 18.00 18.00 18.00
Aquatics Sinsheimer Park 1.00 1.00 1.00 1.00
Community Services 1.00 1.00 1.00 2.00
Facilities 1.00 1.00 1.00 1.00
Golf Course Operations & Maintenance 4.00 4.00 4.00 4.00
Ranger Program 3.00 3.00 3.00 3.00
Parks & Recreation Administration 5.00 5.00 5.00 5.00
Recreational Sports 1.00 1.00 1.00 0.00
Youth Services 2.00 2.00 2.00 2.00
POLICE 86.50 85.50 85.50 85.50
Investigations 12.00 12.00 12.00 11.00
Neighborhood Outreach & Education Ser 1.00 1.00 1.00 1.00
Patrol 43.00 43.00 43.00 44.00
Police Administration 5.50 5.50 5.50 5.50
Support Services 20.00 20.00 20.00 20.00
Traffic Safety 4.00 4.00 4.00 4.00
OTS Step Grant 1.00 0.00 0.00 0.00
PUBLIC WORKS 84.30 84.30 84.30 84.30
Building Maintenance 5.00 5.00 5.00 5.00
CIP Project Engineering 15.00 15.00 15.00 15.00
Flood Control 6.15 6.15 6.15 6.15
Landscape & Parks Maintenance 12.00 12.00 12.00 12.00
Parking Operations/Maintenance 10.00 10.00 10.00 10.00
Public Works Administration 6.00 6.00 6.00 6.00
Streets & Sidewalk Maintenance 9.65 9.65 9.65 9.65
Swim Center Maintenance 1.00 1.00 1.00 1.00
Traffic Signal Lights 2.00 2.00 2.00 2.00
Transit Operations/Maintenance 3.00 3.00 3.00 3.00
Transportation Planning/Engineering 6.00 6.00 6.00 6.00
Urban Forest 4.00 4.00 4.00 4.00
Vehicle Equipment Maintenance 4.50 4.50 4.50 4.50
D-71 Pg. 152
OPERATING PROGRAMS
AUTHORIZED FULL-TIME EQUIVALENT STAFFING BY DEPARTMENT
Revised
DEPARTMENT & PROGRAM 2016-17 2017-18 2018-19 2018-19
2017-19 Financial Plan
UTILITIES 69.10 69.10 69.10 69.10
Environmental Compliance 1.80 1.80 1.80 1.80
Reservoir Operations 3.90 4.00 4.00 3.90
Sewer Customer Service 2.15 0.00 0.00 0.00
Utilities Revenue 0.00 2.00 2.00 1.00
Utilities Services-Water 3.65 3.80 3.80 4.80
Wastewater Admin/Eng.6.00 5.00 5.00 4.50
Wastewater Collection 6.75 7.15 7.15 7.15
Water Admin/Engineering 5.10 4.20 4.20 4.80
Water Distribution 12.00 12.50 12.50 12.50
Water Quality Lab 3.70 3.70 3.70 3.70
Water Resource Recovery 12.30 12.80 12.80 12.80
Water Source of Supply 0.70 0.70 0.70 0.70
Water Treatment 11.05 11.45 11.45 11.45
TOTAL 396.40 391.80 391.30 393.55
D-72 Pg. 153
SECTION E: OPERATING PROGRAMS
Purpose
The operating programs set forth in this section of the Financial Plan form the City’s basic organizational
units, provide for the delivery of essential services and allow the City to accomplish the following:
• Establish policies and goals that define the nature and level of services to be provided.
• Identify activities performed in delivering program services.
• Set objectives for improving the delivery of services.
• Appropriate the resources required to perform activities and accomplish objectives.
This section provides summary charts of the operating programs, the City’s basic organizational units,
which provide for the delivery of essential services.
The City’s operating expenditures are organized into hierarchical categories:
Fiscal Health Response Plan Implementation
This Section includes the operating program expenditure summary information which includes the
implementation of the Fiscal Health Response Plan. As a result there are $1,372,000 in savings arising
from operational reductions and new ways of doing business as well as approximately $100,000
anticipated in new revenues. Notably this section includes specific information regarding the proposed
changes by Department to operating programs to respond to the Fiscal Health Response Plan. Those
changes are presented by Department in table format and describe the dollar amount, the change, and
•This is a grouping of related operations and programs that may
cross departmental boundaries, i.e., Public Safety. Currently
the City’s functions are characterized by the graphical “wheel”
below.
Function
•An operation is a group of related programs within a functional
area such as Police Protection within Public Safety or Water
Service within Utilities.Operation
•The City has many programs which are the basic organizational
units of the Financial Plan and establish policies, goals and
objectives to define the nature and level of service provided..Program
•These are specific services and tasks performed within
programs to provide service in pursuit of goals and objectivesActivity
E-1 Pg. 154
the effect of the change. All are consistent with strategic budget direction previously provided by
Council in April 2018.
2018-19 Operating Program Reductions by General Fund Departments
Department Reduction Type Amount Service Level Impact
Administration Contract
Services
Other Operating
Expenses
Ventures &
Contingencies
Networks
Services,
Community
Promotion,
City
Administration,
Economic
Development,
Administration &
Records,
Contract Services
Support Services
Support Services
Subtotal
$64,000
$6,000
$45,000
$115,000
Reductions in contract services
will result in increased inhouse
network services, less
opportunity for the PCC to fund
last minute projects, improved
value of contract performance,
lower contingencies in contracts,
and an adjustment in the budget
for services not used.
An analysis in operating expenses
has identified that there are
annual savings and this budget
can be reduced.
A reduction in V&C results in
less available funding for special
projects of a Citywide nature.
Finance Contract Services
Operating Expenses
Accounting
Accounting
Subtotal
$5,000
$10,000
$15,000
The City has been preparing its
AB 1600 report annually and the
contract for service will be
adjusted downward to reflect that.
An analysis of operating
expenses identified historical
annual savings and this budget
can be reduced.
City Attorney Contract Services &
Operating Reductions
$19,000
The City Attorney has reduced its
budget to provide temporary staff
via contract services and an
analysis in operating expenses
Expenditures by
Function
Expenditures by
Program
Expenditures by
Department
Operating
Program
Changes by
Department
E-2 Pg. 155
Department Reduction Type Amount Service Level Impact
Subtotal
$19,000
has identified that there are
annual savings and this budget
can be reduced. Should a legal
matter arise that requires
additional staffing it will be
address on a case by case basis
with Council.
Human
Resources
Training
Tuition
Reimbursement
PACE
Contribution
Appointed
Officials
Subtotal
$19,000
$6,000
$3,000
$2,000
$30,000
Elimination of budget for
unanticipated trainings, majority
of City training offered through
contract with the Centre for
Organization Effectiveness.
Reduction in budget to historical
average.
City's investment in the Centre
for Organization Effectiveness
makes PACE investment
redundant.
Reduction through contract
negotiation for Appointed
Officials' Evaluations facilitator.
Parks &
Recreation
Youth Services
Recreation
Administration
Youth Services
Staffing,
Contract Services
&
Operating Budget
Re-Organization
$49,000
$82,000
Eliminate the SLO Teens
Program and use City Buses for
local Summer Camp Field Trips.
The Teen Program was not
staffed during 2017-18 and will
therefore not impact current
students nor a filled position.
Elimination of this funding limits
the department's ability to engage
teens in positive activities in the
future. To reduce liability
consistent with the City's "30 in
3" initiative, Youth Services will
no longer contract for bus trips
outside of the region.
The Department has completed a
re-organization across multiple
programs to increase efficiencies.
Additionally, the reduction of a
vacant Administrative Assistant 1
position focused on customer
service and public counter duties
E-3 Pg. 156
Department Reduction Type Amount Service Level Impact
Subtotal
$131,000
is proposed. As a result, the
Department's public counter
hours will be reduced but users
may still register online 24 hours
a day and/or make appointments.
The use of part time supplemental
employees is required to continue
to provide in person customer
service six hours a day.
Community
Development
Operational
Efficiencies
Re-organization
Community
Development
Admin.,
Development
Review, Long
Range
Planning, Human
Relations
Development
Review,
Housing
Assistance,
Building
& Safety
Subtotal
$21,000
-$11,000
$10,000
Reorganization of the Department
utilizing current and future
anticipated vacancies to obtain a
sustainable business model
should have little to no effect on
service levels but will require the
use of supplemental resources
during times of high development
activity. In addition, the
reorganization relies on
procedural changes, and
“delivering service differently,”
with respect to the path that
certain projects take through the
entitlement process. These
procedural changes are being
pursued as part of the Zoning
Regulations update.
The savings comes from the
reclassification of an Associate
Planner to a Planning Technician
and reducing historically
underspent operating budgets. A
Code Enforcement Technician I
position will also be reclassified
to a Code Enforcement
Supervisor as-a-result of the
determined Code Enforcement
priorities per Council direction
and the Housing Programs
Manager has been reclassified to
a Senior Planner. The
reclassification of the Code
Technician is an increase to
operating cost, however, total
cost reductions yield a net
savings.
E-4 Pg. 157
Department Reduction Type Amount Service Level Impact
Public Works Energy Efficiencies
/Consumption
Reduction
Operational
Efficiencies
Building
Maintenance,
Swim Center,
Fleet, Parks
Maintenance,
Street
Maintenance,
Traffic Signals
PW
Administration,
Traffic Signals,
Street
Maintenance,
Transportation &
Engineering
Subtotal
$293,000
$21,000
$314,000
Energy conservation at City
facilities is projected to reduce
electricity usage resulting in.
Reductions in fuel driven by
historical trends and the City is
replacing its older fleet with
energy efficient vehicles which
has reduced their overall
consumption. The replacement
of the existing turf at Damon
Garcia sports complex with a
more robust species is expected
to reduce the cost of fertilizer.
New technologies in irrigation
controls will also mean an overall
reduction in water use. Staff also
projects a decrease in water use
should the area receive an above
average rain fall during the rainy
season. A decrease in the cost of
asphalt will result in overall cost
savings. Replacement of older
traffic signals with energy
efficient models will result in a
projected savings in electricity
use.
Due to operational efficiencies in
consolidating office supplies,
replacing hard copy reports with
electronic copies, will result in
savings in office supplies and
print & reproduction. Reduction
in contract services and operation
materials for traffic signals and
transportation & engineering can
be absorbed with existing staff
and the program's budget.
Education and training reductions
will be offset because for those
staff that do attend trainings, they
will present key messages and
materials to remaining staff upon
their return.
Fire Consumables/Utilities Fire
Administration
$4,000 Result of installation of
sustainable landscaping.
E-5 Pg. 158
Department Reduction Type Amount Service Level Impact
Education & Training
Operating Reductions
Fire Admin., Fire
Apparatus
Services, Fire
Prevention
Hoses and Fittings
Subtotal
$11,000
$14,000
$29,000
Reductions are accomplishable
and will require sharing of
information in a train the trainer
format and more focused
selection of training
opportunities.
An analysis in operating expenses
has identified that there are
annual savings and this budget
can be reduced.
Police
ALL DEPTS
Operating Reductions
Contract Services
Police Admin,
Neighborhood
Services
Police Admin,
Patrol,
Investigations,
Support Services,
Neighborhood
Services, Traffic
Safety
Subtotal
TOTAL
$23,000
$10,000
$33,000
$696,000
Reductions are possible due to
operating changes, a no longer
using software that was
ineffective, use of an existing
citywide communications
contract for efficiencies, more
targeted disbursement of
educational materials.
Contract service reductions are
possible due to operating
changes, a no longer using
software that was ineffective, use
of an existing citywide
communications contract for
efficiencies, more targeted
disbursement of educational
materials.
Operating Reductions Organization Wide
Expenditure
Reductions
New Ways of Doing
Business
Debt Refinancing
CalPERS
Prepayment
Business License
$83,000
$323,000
$150,000
This is the real savings in year
one based on cash flow schedule.
Increase in years two and three.
Prepay Unfunded Liability in
July of each year in place of on-
going monthly payments.
The expected results of business
license enforcement and
collections
E-6 Pg. 159
Department Reduction Type Amount Service Level Impact
Cannabis
New Ways of
Doing Business
Code Enforcement
TOT
Subtotal
$100,000
$20,000
$50,000
$50,000
$676,000
Conservative estimate in Year 1
due to business ramp up period.
New revenue from Cal Poly
contract re-negotiation.
The expected results of the
City’s Code Enforcement
Program
Increase enforcement of
homestay collections.
Departments’ and
Organization Wide
Changes in Budget
Expenditure
Reductions
New Ways of
Doing Business
New Revenue
Total
$1,102,000
$270,000
$100,000
$1,472,000
E-7 Pg. 160
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 Ongoing Open Space Maintenance 60,000 60,000 120,000 CFunding for the ongoing maintenance of Open Space protects natural resources. Efforts include enhancement to existing trailheads, maintenance and construction of trails and open space facilities for passive recreation purposes, removal of illicit materials, land restoration and stewardship projects, erosion control and stabilization, and education.Open Space Acquisition 100,000 100,000 200,000 CFunding to pursue and purchase land and conservation easement to enhance the Greenbelt surrounding the City. The Greenbelt protects watershed values, habitat connectivity and provides passive recreation opportunities.Laguna Lake Dredging 40,000 - 40,000 Reallocate $100,000 to the Laurel Lane Complete Streets Project. Funding to obtain regulatory permits and begin a maintenance dredging regime for Laguna Lake.Open Space Wildfire Fuel Reduction 5,000 5,000 10,000 CFunding to implement Open Space fire prevention efforts.Ranger Services (Ranger Staffing; FTE = 2) 139,685 147,068 286,753 CFunding to provide two Ranger Maintenance Workers.Subtotal 144,685 152,068 200,000 160,000 656,753 Pedestrian and Bicycle Pathway Maintenance 60,000 60,000 120,000 TThis funding is used to maintain the pathway surface, replacing damaged portions of the surfacing and placing a slurry topping to extend the service service life. There are approx. 6.5 miles of asphalt concrete pathways and bike paths within the City. Examples of these paths are the Railroad Safety Trail, the Bob Jones Trail and various pathways located within City Parks.Bicycle Facility Improvements 100,000 75,000 175,000 TReallocate $25,000 to the Laurel Lane Complete Streets Project. This funding allows the City to complete small-scale bicycle facility improvements in a cost efficient manner by incorporating them into larger projects such as the City's annual pavement maintenance project. These funds typical focus on safety improvements that normally would not be completed.Sidewalk Replacement and Installation 25,000 50,000 75,000 TThis funding provides for replacement of damaged sidewalk and installation of a limited amout of new sidewalk. This program continues the City's commitment to provide a complete and assessable pedestrian path of travel. Replacing defective sidewalk improves accessiablity and reduces risk to users and the City. The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Open Space PreservationBicycle and Pedestrian ImprovementsMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-1Pg. 161
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Bob Jones Trail - Prefumo Creek Connection to Oceanaire 216,000 216,000 TThis project will construct the Bob Jones Trail from Calle Joaquin to Oceanaire Ave. past the Target shopping center in the second year of the financial plan. This funding is used to augment grant funding to complete the installation.Railroad Safety Trail - Pepper Street to Train Station 30,000 30,000 TThis project will complete a gap in the Railroad Safety Trail from Pepper Street to the Train Station. This funding will support the design phase with antipcated construction work being completed in 2019-20.Active Transportation Plan 40,000 40,000 T This project will update and expand the Bicycle Transportation Plan scope to include pedestrians, creating and Active Transportation Plan that address both Bicycle and Pedestrian transportation. Downtown Renewal 190,000 - 30,000 DReallocate $160,000 to the Laurel Lane Complete Streets Project. This work continues to improve the aesthetic and the safety of the Downtown core. With each project, the addition of pedestrian lighting and conduits to support tree lighting and other Downtown Association activities is incorporated. The specific location of this work is planned for 858 Higuera Street and that design has been completed. Funding will support construction activities. Transportation Planning and Engineering (Engineers, Bike Coordinator; FTE = 1.6) 189,099 201,675 390,774 C,D,T Engineer and Bicycle Coordinator positions. Subtotal 189,099 201,675 415,000 431,000 1,076,774 Traffic Safety Report Implementation 60,000 60,000 TThis funding support will implement one of the projects identified in the 2015 Traffic Safety Report: Speed Feedback Signs. Future projects will include the Marsh & Broad Traffic Signal and Laurel Lane Road Diet $180,000. These projects are anticpated to decrease vehicular collisions, increase pedestrian safety, and reduce vehicle speeds.Transportation Safety & Operations 30,000 30,000 60,000 TThis funding is used to analyzes vehicular collision, multimodal travel patterns, rank and prioritizes locations, development and construction of mitigation measures to improve safety. Additionally, bi-annual traffic volume counts are completed citywide to identify and monitor levels-of service on streets resulting from travel pattern shifts. Traffic Congestion Relief / Safety ImprovementsMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-2Pg. 162
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Traffic Signs & Striping Maintenance 25,000 25,000 50,000 TThis funding is used to replace traffic signs and roadway striping in order to increase visibility and increase safety in compliance with Federal requirements.City Facility Parking Lot Maintenance 120,000 120,000 The City maintains approxiamately 8.3 acres of parking lots of which 50% of the parking surface is considered to be in good condition. In order to increase the percent of lot surfaces in good condition, regular maintenance needs to be completed. This funding will be used to make repairs in the Police Department parking lot.Neighborhood Traffic Improvements 75,000 75,000 150,000 This funding supports the study, design and implementation of neighborhood traffic management needs.Signal and Light Maintenance (Technician; FTE = 1) 111,001 112,138 223,138 TSignal Technician position.Subtotal 111,001 112,138 190,000 250,000 663,138 Police Patrol Vehicles 102,000 153,000 255,000 Funding to replace five police patrol vehicles. Police Motorcycle 34,000 34,000 Funding for one police motorcycle. Fire Emergency Response Vehicle 135,000 135,000 Funding to replace the Fire Emergency Response Vehicle will result in replacing Fire Engine 3 per the City’s fleet replacement policy. This apparatus is a front-line vehicle assigned to our southernmost fire station and provides 24/7 fire, rescue and emergency medical services.Fire Training Service Vehicle 58,000 58,000 Funding to replace the Fire Training Services Vehicle will result in replacing a pickup truck per the City’s fleet replacement policy. This vehicle is assigned to Fire Station 2 and serves multiple purposes, including the deployment of special rescue equipment, which does not fit on the fire engine, for open space rescues.Emergency Dispatch Center Building Maintenance 27,000 145,000 172,000 Funding to replace HVAC system at the Emergency Dispatch Center Computer Room including the cooling for the data center. The unit has experienced several catastrophic failures and has cost $50,000 in repairs in the past 6 years.Emergency Dispatch Center Technology and Equipment Replacement 82,023 82,023 Replacement of battery backup system which is vital to provide maximum power capacity so that City systems such as servers, data and storage networks don’t experience data loss or corruption. Also includes computers and equipment replacement that provide computing environments that are critical to the day-to-day operations of our Public Safety Dispatch Center. These computers and equipment are kept “always on” so in case of a failure or an emergency,. This ‘always on’ state shortens the working life of the equipment. Public SafetyMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-3Pg. 163
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Police Station Building Maintenance and Improvements 35,000 94,000 129,000 Funding to replace roof on evidence storage building, install cooling system for IT equipment and lobby improvements at the Police Department. Fire Stations Building Maintenance 126,700 57,300 184,000 Funding to perform various maintenance activities at the City's fire stations included sewer lateral replacement, HVAC system replacement, exterior painting and pest control.South Hills Radio Site Upgrade 250,000 250,000 Radio signal strength used by public safety staff has greatly degraded due to new building construction and tree growth. This project includes: a new 100’ radio tower that will replace the existing undersized street light poles at South Hills, a new correctly sized emergency generator and a concrete radio shelter to replace the existing fiberglass shelter built in 1980. Total project cost is $437,837 with the balance coming from the General Fund.Police Digital Storage Equipment Replacement 80,000 80,000 The Police Storage Area Network consists of a primary and backup controller. These controllers store all police documents, files and images. It is critical that Police maintain a totally separate file storage system to comply with Department of Justice requirements. The controllers were last replaced in 2012 and are at end of life.Police Handheld and Vehicle Radio Replacement 180,000 180,000 All City radio end user equipment (public safety and non-public safety) are reaching end-of-support and/or end-of-life. The public safety portion of the equipment is heavily used and requires a high degree of reliability. This funding will cover the replacement of 80 Police handheld radios.Facility Security Cameras 26,500 26,500 DThis project will replace the public safety video systems including cameras, camera housings, mounts, servers, storage and a control system located at the Golf Course, City Hall, and the City Pool facility.Fire and Police Radio System Upgrade 100,000 100,000 This project replaces the radio systme used by Police and Fire which is nearing end of life. The upgrade will eliminate points of failure in the system, which significantly reduces the impact of a site loss while improving radio coverage for the City’s Police and Fire personnel. Total cost $508,045 with the balance coming from the General Fund.Fire Station 4 Emergency Backup Generator 7,000 72,500 79,500 The project replaces an existing 38 year old emergency back-up generator at Fire Station 4 and constructs a soundproof concrete block wall enclosure. Street Lighting 20,000 20,000 40,000 Currently the City does not have a program to respond to requests for new street lighting. This funding is proposed to support requests for new street lighting to fill this need. Major City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-4Pg. 164
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Police Station Replacement Study 15,000 15,000 Funding to develop a concept plan, implementation plan, and cost estimate for new Police Department Buidling. The existing building was built in 1969, modified over time, and does not meet current operation needs.PuslePoint CPR Software 8,000 8,000 16,000 FFunding supports an app that allows community members to act as first responders.Patrol Services (Officers, Sergeant; FTE = 4) 884,388 928,077 1,812,465 Funding support three Patrol Officers and one Police Sergeant.Subtotal 892,388 936,077 961,200 858,823 3,648,488 Street Reconstruction and Resurfacing 1,600,000 2,072,100 3,672,100 C,TAdd $632,100 from various projects to the Laurel Lane Complete Streets Project.Funding for pavement maintenance is used to increase roadway life, smoothness, and usability. Maintaining pavement on a regular basis results in decreased risks to the community and lower pavement maintenance costs in the future. Over the two year period this funding is planned to be used for roadway maintenance on Los Osos Valley Road, Madonna Road, Broad Street and Areas 2 and 3 of the Pavement Management Plan will go to Council in May (Laurel Lane, Southwood.Streets Maintenance Dump Truck and Street Sweeper Unit 130,000 130,000 260,000 Funding for equipment used to haul asphalt concrete from asphalt batch plant to job site and equipment used to clean up work site.Streets Maintenance Crack Sealant Machine 53,000 53,000 Funding for equipment used to seal pavement gaps and cracks. Filling cracks in pavement stops water from getting into the road section which causes pavement failure.Streets Maintenance Loader with Skip & Drag Attachment 133,000 133,000 Funding for equipment used to remove portions of existing streets that require repair and repaving.Streets Maintenance Slide in Patcher 205,000 205,000 Funding for equipment that is used to place the asphalt concrete.Streets Maintenace Medium Duty Truck 120,000 120,000 Funding for replacement heavy duty truck and trailer used daily for traffic control device transportation and weekly for Farmers Market traffic control.Electric Forklift 35,000 35,000 Funding for equipment used to move heavy materials at the Corporation Yard.Streets Maintenance Portable Message Board 20,000 20,000 Funding for replacement traffic control device used to detour vehicles away from roadway work zone.Neighborhood Street PavingMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-5Pg. 165
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Corporation Yard Building Maintenance 9,500 24,250 33,750 Funding for Corporation Yard fuel island maintenance and replacement of roll up doors. Protecting the fuel islands and the wash bay from the elements is a requirement of the City’s Hazardous Materials Business Plan and Stormwater Management Plan. The metal siding of the fuel island at the Corporation Yard has suffered from severe long-term corrosion.CIP Project Engineering (Inspector; FTE = 1) 113,899 115,325 229,224 Funding supports a Field Engineering Inspector position. Streets and Sidewalk Maintenance (Maintenance Worker; FTE = 1) 100,695 101,869 202,564 Funding supports a Streets Maintenance Worker position. Subtotal 214,594 217,194 2,080,500 2,451,350 4,963,638 Mission Plaza Railing Upgrade- - DReallocate $30,000 to the Laurel Lane Complete Streets Project. Funding is used to replace or reconstruct existing railings in the Mission Plaza to meet current ADA and Building Codes as well as increase safety for the community. Currently, the vertical railing pickets of the railing are spaced too widely and would not prevent a small child from going through the guard railing or getting stuck between the pickets.Building and Safety (Code Enforcement Officer, Neighborhood Services Specialists; FTE = 3) 252,729 269,025 521,754 HFunding supports a Building Code Enforcement Officer and two Neighborhood Services Specialists.Subtotal 252,729 269,025 - - 521,754 Storm Drain System Replacement 231,000 - 231,000 CReallocate $317,100 to the Laurel Lane Complete Streets Project. This funding is used to replace and improve the City's storm drain system including pipes, culvert and drainage inlets. Maintenance of the City's storm drain system provides for increased flood protection and reduces the likelihood of property loss. Without periodic maintenance repair, these structures will eventually fail and result in unplanned street closures and impacts to the City's drainage system.Bridge Maintenance 50,000 50,000 TThis funding is used to complete minor bridge maintenance tasks that include deck surfacing and replacement of broken concrete which will extend the bridge's service life. The City of San Luis Obispo has 38 vehicular bridges and 11 pedestrian bridges ranging in age from one to 100+ years old. El Capitan bride will take place in Fall, 2018.Flood ProtectionCode EnforcementMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-6Pg. 166
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Creek and Flood Protection (Collection Operators, Stormwater Management Plan; FTE = 6) 641,742 652,195 1,293,937 CFunding supports a Stormwater Code Enforcement Officer, Stormwater Collection Operators and implementation of the Stormwater Management Plan.Subtotal 641,742 652,195 231,000 50,000 1,574,937 Parks Maintenance Pickup Truck 35,000 35,000 Funding for equipment used to transport maintenance staff, tools, equipment and supplies between the Corporation Yard and parks. Parks Maintenance Tractor 42,000 42,000 Funding for equipment used to maintain park system. The tractor is used maintain play turf areas. Parks Maintenance Utility Cart 26,000 26,000 Funding to replace the utility cart used at Damon Garcia Sports Fields. This equipment is used daily and is critical to the maintenance function of the Damon Garcia Sports Fields. Parks Maintenance Equipment Replacement 41,000 41,000 Funding for equipment replacement used to maintain play turf and to refurbish the portable movable restrooms used for Farmer's Market. Golf Course Mower 33,000 33,000 Funding for mower at Laguna Lake Golf Course. Golf Course Utility Carts 56,000 56,000 Funding for two utility carts used for moving equipment, materials and supplies at the Laguna Lake Golf Course. Swim Center Building Maintenance and Equipment Replacement 18,500 27,000 45,500 Funding to replace Swim Center filter controls, Swim Center bath house roof, and to re-plaster the therapy pool. The Swim Center filter backwash controls are old rotary valves and are failing. The project will replace them with a modern valve system to keep the filters in the clean and sanitary conditions called for by the County Health Department. The bath house roof is past the expected service life and and in need of replacement. The warm water therapy pool at the Swim Center requires re-plaster due to the year-round high heat level, the chemicals needed to keep warm water, and the user direct and extended contact which contributes to a degrading of the plaster in an accelerated manner. Swim Center Co-Generation Plant 85,000 85,000 Funding for design services to replace the co-generation plant at the Swim Center which burns natural gas to heat the pool water.Ludwick Center Gym Lights 15,500 15,500 Funding for to purchase lighting for the Ludwick Center Gym. The lighting will be L.E.D. retro-fit lighting fixtures for the gym that City staff will install. The new lighting will improve lighting quality, lower electrical use, minimize maintenance needs and costs.Parks and Recreation/Senior Programs and FacilitiesMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-7Pg. 167
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description Ludwick Center and Jack House Shell Assessment 57,500 57,500 Funding to assess exterior shell of the Jack House and Ludwick Center. The Ludwick Center is a key recreation site and the Jack House is historically significant and are in need of professional assessment for needed repairs. In both cases, siding has begun to deteriorate and some structural issues are beginning to appear.Jack House Building Maintenance 16,500 16,500 Funding to complete the design and permitting for roof, window, and walk railing replacement at the Jack House. Construction is estaimted to occur in 2019-20. Parks and Recreation Building Maintenance 7,200 43,200 50,400 Funding for the design and replacement of the HVAC system at the Parks and Recreation Administration building. The City averages approciately 700 hours of labor to repair aged HVAC systems that are in service past useful life. This request will replace ageing equipment in a proactive lifecycle costing process.Park Playground Equipment Replacement 80,000 80,000 Replacing playground equipment in the City's parks limits the City's liability exposure and keeps the City in compliance with State regulations. This funding would support project design services for equipment replacement at Islay Hill Park (Tank Farm Road at Spanish Oaks).Park Major Maintenance and Repairs 170,000 290,000 460,000 C,TParks require ongoing maintenance in order to continue to provide users a safe and quality experience. This funding will address bridge replacements at Meadow Park, reconstruct hardscape at Sinsheimer Court, hydration station installation and replacement of the irrigation system at Sinsheimer Park.City/County Library Remodel, Major Maintenance and ADA Compliance 408,900 22,950 431,850 The City/County Library is a joint project between the City and County. A major remodel project was recently intiated which included the replacement of the elevator, flooring, and roof as well as other various maintenance and accesibility projects. City/ County LibraryHVAC Half paid for by the County $3600 in 17 18 $22 950 in 18 19Mission Plaza Restroom and Enhancements 25,000 25,000 DThis project will replace the Mission Plaza restroom with a new restroom, cafe, and equipment storage room implementing a portion of the Mission Plaza Concept Plan. The identified funding will further scope the design and complete the environmental review. Construction funds will be requested in a the 2019-21 Financial Plan.Parks and Landscape Maintenance (Maintenance Worker; FTE = 1) 83,520 84,563 168,083 Funding for a Parks Maintenance Worker position.Subtotal 83,520 84,563 723,100 777,150 1,668,333 Other Vital Services and Capital ProjectsMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-8Pg. 168
2017-19 LOCAL REVENUE MEASURE EXPENDITURES2017-18 2018-19 2017-18 2018-19 The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.Project TitleOperating Programs CIP 2-yr TotalFundingMCGOIO Description City Hall Building Maintenace 251,900 251,900 This funding will replace the City Hall chiller and lock systems. Both items are failing, discontinued by the manufacturer, and replacement parts are not available. The chiller provides cooling to one of the City's data centers located at City Hall.Multi-Site Energy Management Software 24,000 24,000 48,000 C,FThis funding will replace Energy Management System software with a modern application that integrates with the City's computer network allowing for more efficient tracking energy use and improved conservation efforts.Subtotal- - 275,900 24,000 299,900 2,529,758 2,624,935 5,076,700 5,002,323 15,073,716 Total Local Revenue Measure UsesMajor City Goal (MCG) = Housing (H); Multi-Modal Transportation (T); Climate Action (C); Fiscal Sustainability and Responsibility (F)Other Important Objective (OIO) = Downtown Vitality (D)F-9Pg. 169
SECTION G: CAPITAL IMPROVEMENT PROJECTS
OVERVIEW
All City construction projects and equipment purchases costing $25,000 or more are included in its Capital
Improvement Plan (CIP). The CIP is adopted as part of the budget in every Financial Plan and accomplishes
several goals.
Comprehensive policies relative to the development of the City’s CIP are specified in the Policies and
Objectives section of the 2017-19 Financial Plan including detailed information relative to both the two-
year Financial Plan and the Five-Year CIP forecast. That information is found on page E1-1 of the 2017-
19 Financial Plan. As noted earlier, a new policy is proposed with the Supplement for a Capital
Improvement Plan Reserve. This Reserve reflects the assumptions of the adopted Fiscal Health Response
Plan. Specifically, that the City will increase capital investments during the term of the Plan or into the
future and will not solve the increased retirement costs problem via capital projects.
This Section includes the following elements.
1.Status of Major 17-18 CIP projects.
2.Narrative summary of the 2018-19 CIP, including project information, update on SB 1 projects,
“new” project appropriations proposed for 18-19, and reallocations to Fund the Laurel Lane
Complete Streets project.
3.Charts and tables summarizing funds, funding sources, and Program Functions
Maintains and replaces existing City infrastructure in accordance with City’s asset
management plans, infrastructure replacement schedules, and other documents.
Meets community needs and desires as established in the Community Budget Forum,
Major City Goals and Council priorities.
Plans, schedules and finances projects to ensure cost -effectiveness and conformance
with established policies.
G-1 Pg. 170
2018-19 CIP
The following projects and funding schedules have been included in this document as a supplement to the
2017-19 Financial Plan CIP. This summary covers only those projects approved for 2018-19 funding in the
17-19 Financial Plan.
Police Station Conceptual Design
Silt Removal
Pickleball Courts
City / County Library Major Maint. & ADA…
Water Resource Recovery Facility Project (WRRF)
Laguna Lake Dredging & Sediment Management
Open Space Maintenance
Open Space Acquisition
Neighborhood Paving 2018
Traffic Safety Report
Prado Road Interchange
Prado Road Creek Bridge Widening
Neighbhorhood Traffic Management
Water Distribution System Improvements
Safe Routes to School/Anholm Bikeway
Railroad Safety Trail
Bob Jones Trail
Palm Nipomo Parking Structure
Park Major Replacement & Repairs
Fleet Replacement (14 out of 17 vehicles)
I.T. Replacement
70%
70%
20%
75%
40%
85%
100%
50%
30%
80%
75%
80%
90%
90%
30%
25%
30%
70%
100%
50%
50%
25%
82%
85%
Status of Major 17-18 CIP Projects (as of 6/1/18)
Under Study or Design Under Construction
G-2 Pg. 171
1. A narrative summary highlighting the changes from the Council-adopted 2018-19 CIP. These
changes include additional funds from other sources (Zone 9, development fees, etc.); and,
reallocations from delayed 18-19 Capital projects to fund a project more advanced in the design
and community acceptance process.
.
2. Listing of 2018-19 CIP Projects by Program Function, regardless of Funding Source. This list
includes any recommended changes to the original budget. There are no new requests for
unrestricted General Fund resources proposed in the 2018-19 CIP Supplement.
3. Summary by Fund and Funding Source.
4. Project CIP Write-Ups for the three new appropriation projects which include a discussion about
the projects, funding, and phasing. The three new projects are the Mid-Higuera By-Pass, and the
Electronic Plan project, and North Broad Street Neighborhood Park Design and Construction.
STATUS OF CALIFORNIA AT TAFT AND SB 1 PROJECTS
1. The 2018-19 Supplement CIP does not include construction funding for intersection improvements
for California at Taft. While this design work is currently underway, construction funding has yet
to be secured. This project along with others will be considered for construction funding in the
2019-21 Financial Plan. This is called out specifically because prior discussions with Council
indicated possible additional funding in 18-19 for this project.
2. On April 17, 2018 the Council allocated the City’s $834,400 in SB 1 funds for the following
projects.
Project SB 1 Funding
Anholm Bikeway project * $384,400
Railroad Square sidewalk replacement $350,000
El Capital Bridge $100,000
TOTAL $834,400
All three of these projects were existing Capital Projects for 2017-18. The Anholm Bikeway and
Railroad Square projects were in the approved 2017-19 Financial Plan for 2017-18. The El Capitan
Bridge CIP was added on October 24, 2017, by Council action. SB 1 provides additional funding
for these projects to be constructed. As these projects complete design, each will return to Council
for approval with a recommended appropriation amount of SB 1 funding based on the best available
information at that time.
SUMMARY OF NEW PROJECT APPROPRIATIONS IN THE 2018-19 CIP
Three additional CIP projects are included in this Financial Plan Supplement. A brief description of these
projects is provided below with the complete project descriptions provided in the write-ups. The additional
CIP projects are as follows:
2018-19 “New Projects” Proposed for Appropriation
1. Mid Higuera Bypass Appropriation of Grant Funding. This project is a creek capacity
improvement project between Marsh Street and Madonna Road on San Luis Creek which has been
on-going since 2007. To date, this work has been funded 100 % by the County’s Flood Control
G-3 Pg. 172
and Water Conservation District Zone 9 (Zone 9). The project has completed the final
environmental work and is starting final design. The CIP request appropriates $376,000 of Zone 9
reimbursement grant funding to allow this work to continue. There are no General Fund dollars
requested for this project.
2. Electronic Plan Review Appropriation of Development Services Fees. This project includes
development and implementation of a process for electronic submittal and review for development
services. This request is being driven by the need to help manage workloads, providing easy and
accessible services to customers, and to streamline business processes. This CIP request
appropriates $59,477 of over-realized Development Services Fees to implement this work effort.
3. Park in North Broad Street Neighborhood Appropriation of Previously Designated General
Funds. Presently $740,000 of General Fund monies have been placed in the Parkland Fund to
acquire a park in the North Broad Street neighborhood. Staff was directed to pursue a park site in
this neighborhood that facilitates a Park and the Broad Street Bike Boulevard. While an agreement
was reached for use of the Church of Latter Day Saints property for Bike Path purposes, no
agreement could be reached for Park purposes. Parks and Recreation staff facilitated a series of
meetings with a group of residents of the North Broad Street Neighborhood. Staff reviewed all
properties in the neighborhood that might be available and viable for park purposes. Eventually
staff and the residents were able to identify City-owned property at 533 Broad Street, the Broad
Street Community Gardens, could be just right for a Park in this neighborhood. Included in this
CIP would be a programmatic work effort by staff, to use the City’s public engagement process to
engage the neighborhood about this Park, seek input on the design, and have the Parks and
Recreation Commission continue to serve in its capacity as the advisory body to the Council on
this new park. Given staff involvement in Parks and Recreations’ thoughtful reorganization and
focus on other work efforts, this project will not begin until spr ing 2019. The park implementation
plan would begin in 2018-19 with project scoping and design and construction is anticipated in
2020-21. The project funding appropriation for 2018-19 includes only design funds. Future
REALLOCATION OF FUNDS TO CONSTRUCT THE LAUREL LANE COMPLETE STREET
On the May 1, 2018 City Council meeting, a Public Hearing was held to discuss the needs for Laurel Lane.
Specifically, this street was identified in the 2015 Traffic Safety Report as a location to improve safety for
vehicles, bicycles and pedestrians. During the community meetings, residents expressed desires to
repurpose Laurel Lane into a “Complete Street” that addresses mobility needs of cars, bicycles and
pedestrians. In addition, residents identified the need for improved street lighting, enhanced bicycle
facilities, and improved pedestrian safety at intersections.
Concurrent with the community discussions on Laurel Lane, staff was completing design on pavement
sealing work for Pavement Areas 2 and 3. Since those areas are adjacent to Laurel Lane, staff combined the
sealing project and the Complete Streets project into one. The needs of both projects, however, exceeded
the available budget, for each.
To fund the Laurel Lane “Complete Street” in 2018 -19, an additional $793,100 is needed. Staff
recommends repurposing funding for several 2018-19 projects which either have another source of funding
or cannot be completed during t he year. Staff proposes the reallocation of $633,100 of existing 2018-19
CIP projects and $160,000 from a 2017-18 CIP project.
G-4 Pg. 173
1. Mission Plaza Railing. The Mission Plaza Railing Upgrade project is on-going and annually
replaces railing within the Mission Plaza to meet current code requirements. Work has yet to
commence on this effort for 2018-19 and cannot be done in 2018-19.
2. Storm Drain System Replacements. The Storm Drain System Replacements project provides
funding to maintain the City’s entire storm drain network. There is currently adequate funding
within previous years funding to accomplish planned construction work in the fiscal year 2018-19.
Planned work includes the storm drain replacements and improvements on Bullock Street, Buchon
at Santa Rosa, Broad at Leff Culvert, Old Garden Creek, Broad Street, Ellen Way, Lakeview, and
Woodbridge.
3. Parks and Recreation Office Rehabilitation and Maintenance. The Parks and Recreation
Interior Office Rehabilitation Project was delayed due to staffing shortages in Public Works
engineering. It has just begun the design phase with an initial work scope meeting. Due to this
delay, the project will be designed in 2018-19 but construction cannot start until 2019-20. The
project will also likely need additional construction funding based on the known scope of work.
Reallocation of $61,000 of the construction budget to support the Laurel Lane Complete Streets
construction project is recommended. The construction budget for the Office Rehabilitation project
will be included in the 2019-21 Financial Plan for funding consideration.
4. Laguna Lake Dredging. The Laguna Lake Dredging Project provides funding for a pilot project
to remove sediment from Laguna Lake. The project is currently funded for construction in the
amount of $200,000 in Fiscal Year 2018-19. Currently the project has been submitted to the
regulatory agencies to obtain authorization to complete the work. While it is anticipated that
permits will be obtained in summer 2018, by the time the project is advertised for bids, awarded,
and the specialty dredging contractor mobilizes to the area it would be early in the year of 2019.
As this work is required to be completed by September or October, this project cannot occur during
2018-19. Staff proposes making the project timing align with the regulatory approvals in 2019-20
where the project is proposed to receive $250,000 of construction funding. By allowing for this
reallocation $200,000 would go toward the Laurel Lane Complete Street CIP.
5. Bike Facilities Improvements. Annually, supplemental funding to bike projects or to implement
low cost improvements that increase the functionally or safety of existing bicycle facilities is
allocated. A reduction of $25,000 of the annual allocation is proposed and recommended to be
contributed to the Laurel Lane Complete street. The Laurel Lane Complete Street’s work
represents a large improvement to bicycle mobility.
6. Downtown Renewal. The Downtown Renewal project is funded for construction in the Fiscal Year
2017-18 and focuses work at 858 Higuera Street where the sidewalk also acts as the roof for an
underlying basement. Currently, the design work is largely complete. Additional work required
before bidding a construction contract includes adjacent property coordination, Downtown
Association Coordination and construction permitting. With the recent large number, scale, and
duration of downtown construction projects; this project is recommended for deferral one year.
The construction budget for the Downtown Renewal project will be included in the 2019-21
Financial Plan for funding consideration.
It should be noted the original Laurel Lane project and the projects that will be used to provide additional
funding are all fully or partially funded by the Local Revenue Measure. The e Revenue Enhancement
Oversight Commission (REOC) reviewed the reallocations which impacted LRM funding and voted to
support the reallocations on May22nd.
G-5 Pg. 174
Additional Funding for Laurel Lane Complete Streets Project
Project 2017-18 Project
Reallocations
2018-19 Project
Reallocations
1. Mission Plaza Railing Upgrade - $30,000
2. Storm Drain System Replacements - $317,100
3. Parks and Recreation Interior Office Rehabilitation - $61,000
4. Laguna Lake Dredging - $200,000
5. Bike Facilities Improvement - $25,000
6. Downtown Renewal $160,000 -
Subtotal $160,000 $633,100
Total $793,100
G-6 Pg. 175
2018-19 Financial Plan
Proj
ID
FUNCTION, CATEGORY, & PROJECT
NAME
Adopted Revised Change
COMMUNITY & NEIGHBORHOOD LIVABILITY Neighborhood Wellness
1 Mission Plaza Railing Upgrade $30,000 $0 ($30,000)
2 Mission Plaza Restroom Replacements and
Enhancements
$25,000 $25,000 $0
3 Park Major Replacement & Repairs $290,000 $290,000 $0
4 Playground Equipment Replacement $80,000 $80,000 $0
5 Electronic Plan Submittal $0 $59,477 $59,477
6 North Broad Street Neighborhood Park $0 $75,000 $75,000
COMMUNITY & NEIGHBORHOOD
LIVABILITY Total
$425,000 $529,477 $104,477
COMMUNITY SAFETY Fire Safety
7 Fire Station 4 Emergency Backup Generator $72,500 $72,500 $0 Police Protection $0
8 Police Department Space Improvements $89,000 $89,000 $0
9 Police Station Replacement $0 $0 $0
Stormwater
$0
10 Silt Removal $100,000 $100,000 $0
11 Storm Drain System Replacement $317,100 $0 ($317,100)
12 Mid Higuera Bypass $0 $376,000 $376,000
COMMUNITY SAFETY Total $578,600 $637,500 $58,900
CULTURE & RECREATION
Cultural Services
13 City/County Library Major Maint. & ADA
Compliance
$0 $0 $0
14 Public Art Fund $51,700 $51,700 $0
15 Public Art Master Planning Initiatives $75,000 $75,000 $0
Recreational Services
$0
16 Parks and Recreation Interior Office Rehabilitation $111,000 $50,000 ($61,000)
17 Pickleball Courts (formerly New Park Amenities
$0
18 Sinsheimer Park Tennis Court Lighting $179,000 $179,000 $0
CULTURE & RECREATION Total $416,700 $355,700 ($61,000)
ENVIRONMENTAL HEALTH & OPEN SPACE
Environmental Protection
19 Green Fleet Vehicle Charging Stations $75,000 $75,000 $0
G-7 Pg. 176
2018-19 Financial Plan
Proj
ID
FUNCTION, CATEGORY, & PROJECT
NAME
Adopted Revised Change
20 Ongoing Open Space Maintenance $60,000 $60,000 $0
21 Water Resource Recovery Facility Project $56,500,000 $14,420,583 ($42,079,417)
22 Water Treatment - Energy Efficiency $8,500,000 $8,500,000 $0
23 Water Treatment - Major Facility Maintenance $163,000 $163,000 $0
24 Water Treatment - Tank Maintenance $0 OpenSpace $0
25 Laguna Lake Dredging and Sediment Management
Project Implementation
$200,000 $0 ($200,000)
26 Open Space Acquisition $2,600,000 $2,600,000 $0
ENVIRONMENTAL HEALTH & OPEN
SPACE Total
$68,098,000 $25,818,583 ($42,279,417)
INFRASTRUCTURE & TRANSPORTATION Facilities
27 City Facility Parking Lot Maintenance $120,000 $120,000 $0
28 Corporation Yard TI $50,000 $50,000 $0
29 Major Facility Replacement $651,900 $651,900 $0
Information Technology
$0
30 IT Replacement $1,476,317 $1,476,317 $0
Multimodal Transportation
$0
31 2015 Traffic Safety Report Implementation $175,000 $175,000 $0
32 Active Transportation Plan $0 $0 $0
33 Bicycle Facility Improvements $100,000 $75,000 ($25,000)
34 Bob Jones Trail Prefumo Creek Connection to
Oceanaire
$1,060,000 $1,060,000 $0
35 Broad Street Bicycle Boulevard $180,000 $180,000 $0
36 Broad Street Corridor Access Improvements $45,000 $45,000 $0
37 California & Taft Roundabout $1,000,000 $1,000,000 $0
38 Higuera St. Widening - Bridge to Elks & Fontana to
Chumash
$330,000 $330,000 $0
39 Marsh Street Parking Structure Maintenance $0 $0 $0
40 Neighborhood Traffic Improvements $75,000 $75,000 $0
41 Orcutt & Tank Farm Roundabout
$0
42 Palm - Nipomo Parking Structure $0 $0 $0
43 Parking Access Revenue Control System $650,000 $650,000 $0
44 Pedestrian and Bicycle Pathway Maintenance $60,000 $60,000 $0
45 Penny Lane Bridge at Union Pacific Railroad
(UPRR)
$0
46 Prado Road Bridge & Road Widening $9,750,000 $9,750,000 $0
47 Prado Road Interchange $840,000 $840,000 $0
G-8 Pg. 177
2018-19 Financial Plan
Proj
ID
FUNCTION, CATEGORY, & PROJECT
NAME
Adopted Revised Change
48 Railroad Safety Trail (RRST) - Pepper Street to the
Train Station
$30,000 $30,000 $0
49 Safe Routes to School Implementation Foothill
Crossing
$0
50 Transit - Automatic Vehicle Location System $0 $0 $0
51 Transit - Bus Shelter Replacement $25,000 $25,000 $0
52 Transportation Safety & Operations $90,000 $90,000 $0
53 Fleet Replacement $2,287,000 $2,287,000 $0
54 Farmers Market Security Bollards $0 $1,288,000 $1,288,000 Roadway Infrastructure $0
55 Bridge Replacement - Chorro Street $0 $0 $0
56 Bridge Replacement - Madonna Road $0 $0 $0
57 Bridge Replacement - Nipomo Street $0 $0 $0
58 Bridge Maintenance $50,000 $0 ($50,000)
59 Downtown Renewal $0 $0 $0
60 New Street Lights $20,000 $20,000 $0
61 Sidewalk Replacement and Installation $50,000 $50,000 $0
62 Street Reconstruction & Resurfacing $1,600,000 $2,233,100 $633,100
63 Traffic Signs & Striping Maintenance $25,000 $25,000 $0
Utility Services
$0
64 LAN Tablet System $34,100 $34,100 $0
65 Wastewater Collection System Improvements $1,474,000 $1,474,000 $0
66 Wastewater Collection Telemetry System
Improvements
$38,000 $38,000 $0
67 Wastewater Lift Station Replacement $0 $0 $0
68 Water Distribution System Improvements $470,000 $470,000 $0
69 Water Distribution Telemetry System
Improvements
$50,000 $50,000 $0
70 Water Storage Reservoir Replacement $200,000 $200,000 $0
71 Whale Rock Pipeline Reliability Assessment $0
72 Whale Rock Reservoir Automatic Control Valve
Replacement
$36,000 $36,000 $0
INFRASTRUCTURE & TRANSPORTATION
Total
$23,042,317 $24,888,417 $1,846,100
TOTAL $92,560,617 $52,229,677 ($40,330,940)
G-9 Pg. 178
CAPITAL IMPROVEMENT PLAN - SUMMARY BY FUND & FUNDING SOURCE
Fund 2018-19 Financial Plan
Adopted Revised Change
Airport Area Impact Fee
Airport Area Impact Fee $750,000 $750,000 $0
Airport Area Impact Fee Total $750,000 $750,000 $0
Community Development Block Grant (CDBG) Fund
State or Federal Grant $0
$0
CDBG Fund Total $0 $0 $0
Fleet Replacement Fund
Debt Financing $359,000 $359,000 $0
Fleet Replacement Fund $75,000 $75,000 $0
General Capital Outlay $0 $0 $0
Fleet Replacement Fund Total $434,000 $434,000 $0
General CIP Grant Fund
State or Federal Grant $13,327,453 $13,327,453 $0
SB-1 $180,000 $180,000 $0
Zone 9 - County Grant $100,000 $476,000 $376,000
General CIP Grant Fund Total $13,607,453 $13,983,453 $376,000
General Purpose CIP
Developer Contribution $97,547 $97,547 $0
General Capital Outlay $261,000 $1,549,000 $1,288,000
Development Services $0 $59,477 $59,477
CIP Reserves $0 $0 $0
General Purpose CIP Total $358,547 $1,706,024 $1,347,477
Information Technology Replacement Fund
General Capital Outlay $1,078,977 $1,078,977 $0
Parking Fund $18,854 $18,854 $0
Sewer Fund $71,780 $71,780 $0
State or Federal Grant $0 $0 $0
Transit Fund $56,570 $56,570 $0
G-10 Pg. 179
Water Fund $52,150 $52,150 $0
Whale Rock Fund $15,963 $15,963 $0
Information Tech. Replacement Fund
Total
$1,294,294 $1,294,294 $0
Local Revenue Measure Sub-Fund
Measure G Revenue $3,539,600 $3,489,600 ($50,000)
Measure G Revenue - Information
Technology
$182,023 $182,023 $0
Measure G Revenue - Major Facility
Replacement
$507,700 $507,700 $0
Measure G Revenue - Fleet Replacement $508,000 $508,000 $0
Measure G Revenue - Fleet Debt $265,000 $265,000 $0
Local Revenue Measure Sub-Fund
Total
$5,002,323 $4,952,323 ($50,000)
Major Facility Replacement Fund
General Capital Outlay $101,000 $101,000 $0
Sewer Fund $21,600 $21,600 $0
Water Fund $21,600 $21,600 $0
Major Facility Replacement Fund
Total
$144,200 $144,200 $0
Parking Fund
Debt Financing
Parking Fund $650,000 $650,000 $0
Parking Fund Total $650,000 $650,000 $0
Parkland Development Fund
Park In-Lieu Fees $179,000 $254,000 $75,000
Parkland Development Fund Total $179,000 $254,000 $75,000
Public Art Fund
Art In Lieu Fee $15,000 $15,000 $0
General Capital Outlay $111,700 $111,700 $0
Public Art Fund Total $126,700 $126,700 $0
Sewer Fund
Sewer Fund $58,162,000 $16,082,583 ($42,079,417)
Sewer Fund Total $58,162,000 $16,082,583 ($42,079,417)
Transit Fund
G-11 Pg. 180
State or Federal Grant $25,000 $25,000 $0
Transit Fund $1,060,000 $1,060,000 $0
Transit Fund Total $1,085,000 $1,085,000 $0
Transportation Impact Fee
Debt Financing $0
Transportation Impact Fee - Fund
Balance
$1,119,000 $1,119,000 $0
Transportation Impact Fee $250,000 $250,000 $0
Transportation Impact Fee Total $1,369,000 $1,369,000 $0
Water Fund
Water Fund $9,362,100 $9,362,100 $0
Water Fund Total $9,362,100 $9,362,100 $0
Whale Rock Fund
Whale Rock Fund $36,000 $36,000 $0
Whale Rock Fund Total $36,000 $36,000 $0
TOTAL $92,560,617 $52,229,677 ($40,330,940)
G-12 Pg. 181
CAPITAL IMPROVEMENT PLAN – COMMUNITY SAFETY
MID-HIGUERA BYPASS - FY 2018-19
Project Description Community Priority
☒ Rehabilitation or Replacement ☐ Major City Goal & Other Important Objectives
☐ Measure G Priority
Purpose and Need
In 1995, flooding caused damage throughout the San Luis Obispo watershed, including creeks breaching their
banks and creek bank failures, resulting in the development of the City’s Waterway Management Plan
(WMP), which was adopted in October 2003. Six flood management project alternatives were presented in
the WMP, and the Mid-Higuera Bypass project was selected as the preferred alternative by the Water
Conservation District Zone 9 County Advisory Board (Zone 9).
This project includes improvements to the segment of the San Luis Obispo Creek between Marsh Street and
Madonna Road, which is constrained by dense vegetation, bridge crossings, and significant development in the natural floodpla in. The proposed
improvements for this stretch of the Creek are high flow bypass channels and benches constructed above the ordinary high-water mark of the
existing channel, in combination with vegetation management to increase creek conveyance. This project would be constructed predominantly on
City-owned facilities and decrease the flooding through this area of the creek.
Status
This is an existing project originally identified in the 07 -09 Financial Plan document. At that time it was acknowledged that progress was
dependent upon receipt of funding from Zone 9.
To date, a preliminary bypass channel design, scour study, and geotechnical investigation have been completed. The Bianchi Lane Bridge, which
will need to be replaced as part of the project, is beginning preliminary alternatives analysis. The additional funding w ill carry this project through
final design efforts.
Project Team
Lead Department: Public Works
Operating Program Number & Title: 50320 Flood Control – Specification No. 90649
Assignment Program/Work Group Estimated Hours
Project Management CIP Engineering – Design 240 hours
Contract Administration CIP Engineering - Administration 24 hours
G-13 Pg. 182
CAPITAL IMPROVEMENT PLAN – COMMUNITY SAFETY
This project to date has been completely funded by Zone 9.
Initial Projects Costs by Phase
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Design (952) $376,000
Total $0 $0 $376,000 $0 $0 $0 $376,000
Project Funding by Source
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Zone 9 Grant (401 Fund) $376,000
Total $0 $0 $376,000 $0 $0 $0 $376,000
G-14 Pg. 183
CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
ELECTRONIC PLAN SUBMITTAL - FY 2017-19
Project Description Community Priority
☒ New IT Request ☐ Major City Goal & Other Important Objectives
☐ Measure G Priority
Purpose and Need
The project includes development and implementation of a process for electronic submittal and review (E -
Review) of development services applications and plans. This would be an enterprise solution that would
include the divisions that review and mark up development plans as part of the development review process
(Community Development, Public Works, Utilities, and Fire).
This request is being driven by the need to help manage workloads in addition to providing easy and
accessible services to our customers, to keep technology current and to streamline our business processes with automation to ensure efficiency and
help promote accountability and transparency. Further, the State of California requires building departments to accept electronic submittals for
certain permits to streamline and expedite these permits. Our customers have also expressed a sincere desire to save substant ial expenses in
printing multiple submittals, and sta ff expenses for transporting the paper submittals.
This request supports the long standing Major City Goals: Housing, Climate Action, Multi-Modal Transportation, and Fiscal Sustainability and
Responsibility. 1) Housing – This project will facilitate the increased production of all housing types through reduced costs in printing plans and
facilitating a more efficient review process. 2) Climate Action – This project will reduce the City’s carbon footprint by reducing the number of
trips required submit plans an obtain the required building permits. 3) Multi-Modal Transportation - This project is an alternate for transportation
by remotely interfacing with the City to initiate and continue the plan review process without visiting a City office. 4) Fis cal Sustainability and
Responsibility – This project supports economic development by reducing overhead in the permitting process. This project is also a response to
our customers’ needs in establishing the capability of accommodating digital submittals and follo w-up correspondence. Further, this project will
facilitate the capability of issuing non-review permits remotely and alleviating the workload at the front counter.
Status
This is a new project not included in the 2017-19 Financial Plan, however, the project is a part of Phase II of the EnerGov permitting software
implementation which is part of the current IT Strategic Plan. The focus will be to implement additional features and capabil ities of the EnerGov
solution such as enhancing the City's web site by implementing EnerGov Customer Service Solutions with gradual implementation. The approval
of this request would allow staff to implement the software licenses and hardware for an initial group of 12 key staff member s to develop the
G-15 Pg. 184
CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
policy and procedures. Upon completion of the electronic submittal solution staff will work with selected members of the community to test the
procedures for efficiency.
The approval of this project will enable several process improvements and time saving mea sures when implemented. The approval of this request
will also provide the option for licensed contractors to obtain minor building permits, such as water heater replacements, HV AC replacements,
roof covering replacements, etc. through using the new E-Permit solution. The E-Review and E-Permit solutions will also allow online payments
which extends to other fees currently collected with EnerGov permitting software. Additionally, the project will provide real -time search
capability for customers who wish to obtain the status of permit applications, inspection results, and other requests. The project will help offset
reduced staffing at the front counter and improve counter operations at 919 Palm Street through a reduction in traffic and pa per handling/storage.
Project Team
Lead Department: Community Development
Operating Program Number & Title: 40700 – Building & Safety
A project team will be assembled to ensure collaboration between all development services operating programs. The team will h ave representation
from Community Development (Development Review and Building & Safety), Public Works (Transportation and Arborist), Fire, Util ities, Admin
and IT.
Assignment Program/Work Group Estimated Hours
Design Dev Services Project Team 80
Process Development Dev Services Project Team 640
Implementation Dev Services Project Team 160
Training Dev Services Project Team 40
Maintenance Dev Services Project Team 8/yr
The initial phase cost of the project will be a one-time cost of $59,477 to be funded by over r ealized Development Services revenue. Additional
funding will be required each year to support software license costs that is estimated at $8,000. This on-going funding need is planned to be
included in the 2019-21 Financial Plan with other on-going needs and will be recommended to be funded by a 0.40% increase to the Development
Services IT Surcharge Fee.
G-16 Pg. 185
CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
Initial Projects Costs by Phase
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Construction (953) $4,000 $4,000
Equipment Acquisition (956) $14,400 $14,400
Computer Acquisition (963) $41,077 $33,249
Total $0 $0 $59,477 $0 $0 $0 $51,649
Project Funding by Source
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Development Services $59,477
$59,477
Total $0 $0 $59,477 $0 $0 $0 $59,477
G-17 Pg. 186
CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
NORTH BROAD STREET NEIGHBORHOOD PARK - FY 2017-19
Project Description Community Priority
☒ New Project ☐ Major City Goal & Other Important Objectives
☐ Measure G Priority
Purpose and Need
This project is proposed in two phases: the design and construction of a new park facility in the North Broad
Street Neighborhood at the existing City owned community gardens on Broad Street.
This potential new park arises out of direction provided by Council in the 2017 -19 Financial Plan. Staff was
directed to pursue a park site in this neighborhood that facilitates a Park and the Broad Street Bike Boulevard.
The existing, $740,000 General Fund contribution, designated in the Parkland Fund for the Park in this
neighborhood, was to be reevaluated at the 2019-21 Financial Plan if no active pursuit of property was
underway.
When it became clear that a joint park/Broad Street Bike Boulevard was not possible, staff meet with the neighborhood leadership in an effort to identify other
property for this purpose. Consistent with the General Parks and Recreation Element, Parks and Recreation staff presented residents with the alternative park
location at the existing community gardens, 533 Broad Street, which is land owned by the City. This potential park location h as received positive feedback.
At this time a Park at this location would need to be designed and constructed. Some possible features of a new neighborhood park in this location could include
minor landscaping without grass, rock features, ground cover mulch, raised planter beds, concrete pathways with lighting, fen cing, seating, and shade and play
structures. Any design would involve significant community outreach efforts to guide the recommended design and layout. Bas ed on community needs. This
project proposes design in Fiscal Year 2019-20. With construction to be planned for and addressed in the 2019-21 Financial Plan.
Status
This is a new project not included in the 2017-19 Financial Plan. It aligns with the City’s General Plan Parks and Recreation Element.
G-18 Pg. 187
CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
Project Team
Lead Department: Public Works – CIP Engineering
Operating Program Number & Title: 60100 Parks and Recreation Administration
Assignment Program/Work Group Estimated Hours
Project Management CIP Engineering - Design 500 hours
Environmental/Architectural Community Development 20 hours
Permitting Community Development 40 hours
Plan Review Parks Maintenance 20 hours
Neighborhood Meetings Parks and Recreation 100 hours
Community Outreach,
Education
Parks and Recreation 100 hours
Contract Administration CIP Engineering - Administration 100 hours
Construction Management CIP Engineering – Inspection 1000 hours
*740,000 of General Fund monies have previously been assigned to the Parkland Fund for the creation of a Park in the North Broad Street Neighborhood.
Initial Projects Costs by Phase
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Design (952) $75,000
Construction (953) $665,000
Total $0 $0 $75,000 $0 $665,000 $0 $740,000
Project Funding by Source
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
General Fund * $75,000 $665,000
Total $0 $0 $75,000 $0 $665,000 $0 $740,000
G-19 Pg. 188
SECTION H: ENTERPRISE FUND REVIEWS
The City of San Luis Obispo has four “enterprise funds”. These proprietary funds have been created to
provide specific services for which users of the services are charged fees. The financial activity of each
enterprise fund is accounted for separately from the General Fund and each of the funds is governed by
laws, regulations, City financial policies, and other legal constraints that are unique to their functions and
funding sources.
The four enterprise funds presenting reports to the 2018-19 Budget include.
Application of Fiscal Health Response Plan to Enterprise Funds
Part of the City’s Fiscal Health Response Plan incorporates employee concessions into the solution. The
City’s enterprise funds will participate in any employee concessions and each fund will reflect the impacts
of the concessions in its fiscal forecast. Each enterprise fund team is tasked with finding its unique solution
to funding the unfunded pension liability due to the discount rate adjustment. This solution may not impact
rates or reduce previously planned capital project investments.
Water Fund
Overview – Water Fund
After one of the most severe drought periods experienced in history, rain filled the reservoirs in the winter
of 2016-17 and, while the community remains vigilant with its water efficiency efforts, strict conservation
restrictions were lifted. After the restrictions were lifted, average water use increased about eight percent;
still twelve percent under water used before the drought conservation mandates were enacted. Cost
increases associated with the drought, coupled with decreased revenues associated with mandatory
conservation actions, created a financial strain on the Water Fund. The City’s water operations rely on rate
revenues to cover all costs for operations and maintenance, infrastructure replacement, and debt service.
Taxes, including the Utility User Tax, do not support these services.
Despite these challenges, the Water Fund’s financial position is currently stable. The proposed rate structure
and rates, if adopted, will add increased long-range stability and predictability to revenues and rates and are
necessary to meet future infrastructure funding needs. Due to the uncertainty and volatility of the current
conditions related to water use and how the community will respond to the proposed rate structure, only
one year of rates have been developed (historically, two years are proposed). Although a drought rate has
been developed through the rate structure process, it has been put on hold at this time in an effort to reduce
overall confusion associated with all the proposed changes to the rate structure and rates. The drought rate
will be brought forward for consideration in June 2019.
Water Sewer Parking Transit
H-1 Pg. 189
Revenue Category 2017-18 Budget 2018-19 Budget Variance
Water Sales $ 17,223,312 $ 18,621,279 8%
Agency Sales $ 866,250 $ 913,894 6%
Recycled Water $ 600,000 $ 600,000 0%
Dev. Impact Fees $ 1,200,000 $ 800,000 -33%
AB 939 Reimbursement 1 $ 145,000 $ 147,900 2%
Other Revenue $ 326,760 $ 473,000 5%
Investments $ 50,000 $ 50,000 0%
Total $ 20,411,322 $ 21,606,073 6%
The revenue assumes for FY 2018-19 reflect the rate structure and rates as notified through Proposition
218. The public hearing for rate adoption is scheduled for June 19, 2018. Provided the new rate revenue
levels and a continuation of a conservative assumption for development impact fees, the fund is prepared
for upcoming capital projects in water distribution and water treatment.
In coordination with a citywide study, updated water development impact fees were adopted by the City
Council in FY2017-18. The collection of these fees is wholly dependent on development activity and
therefore are budgeted for based on historic lowest amount collected and adjusted at mid-year if fee
revenues are coming in higher than anticipated.
1 Groundwater Sustainability Agency reimbursement costs.
67%
22%
4%
4%3%2018-19 Water Fund Revenue
Water Sales
Base Fee
Sales to Agencies
Impact Fees
Other revenue
H-2 Pg. 190
The Water Division Operating Program budgets are summarized above. The summary reflects the
operating program base budget amounts for FY 2018-19. The Operating Programs include all staffing
assumptions including CalPERS normal cost and unfunded liability payments for the Water Fund.
Important to note is that the increases due to unfunded liabilities have not been considered in the rates
setting process as they will be carried by operating reductions. As set forth in the City’s fiscal health plan,
the Source of Supply budget has been reduced by $100,000 in operating cost. In addition to this
reduction, the successful refinancing of the Nacimiento debt through the County Finance Authority will
yield an annual savings of $75,000 beginning in 2018-19.
Fiscal Health Response Plan Strategy - Water Fund
As the understanding of the cost of water deliveries from the Nacimiento Project matures, the Water Fund
will reduce its budget for pumping charges by $100,000 in fiscal year 2018-19; year one of the Fiscal Health
Response Plan. It will be responsible to meet its operating cost reduction target of $542,000 in three years.
Through an unprecedented water meter replacement program, it is also expected to receive additional water
sales revenue amounting to $100,000 annually.
Fiscal
Year
Fund Program Reduction Type Amount
2019 Water Source of Supply Pumping Charges $100,000
Capital Projects - Water Fund
While there is some minor level of project reprioritization occurring in FY2018 -19, the Water Fund’s
capital improvement program funding requirement remains at $1,767,310, as presented in the 2017-19
Financial Plan.
Water
Admin
Source of
Supply
Water
Treatment
Water
Distribution
Water
Resources Total
2017-18 $832,335.00 $9,372,480.$2,870,295.$1,835,800.$527,237.00 $15,438,147
2018-19 $762,227.00 $9,427,131.$2,619,672.$1,870,676.$498,540.00 $15,178,246
Variance -8.42%0.58%-8.73%1.90%-5.44%-1.68%
$(2,000,000.00)
$-
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
$18,000,000.00
Operating Budgets
H-3 Pg. 191
Proposed Rate Structure and Rates – Water Fund
The City Council held several public meetings
through which it set rate structure goals and
determined the appropriate water rate structure to
met those goals. The result was a new rate structure
that adopts monthly base fees according to meter
size and changes the volumetric tier structures.
Incorporated into the rate study was a
comprehensive cost of services study to determine
the proposed rates.
Those in the RESIDENTIAL customer class have one water meter per residential unit. The residence may
be a single-family home or condominium - the distinction being they are individually metered. Those in the
MULTI-FAMILY customer class have one water meter that serves multiple housing units, such as a tri-
plex, apartment building, or mobile home park.
RESIDENTIAL
Proposed Water Rate Structure Proposed Rate
Single Class Monthly Base Fee $20.61
Usage (per unit cost)*
Tier 1 0-5 units $5.90
Tier 2 6-12 units $6.87
Tier 3 13+ units $12.59
*ONE UNIT = 748 GALLONS
MULTI-FAMILY, NON-RESIDENTIAL, IRRIGATION
Proposed Water Rate Structure Proposed Rate
Base Fee by Water Meter Size Monthly Base Fee
3/4 inch or less $20.61
1-inch meter $34.40
1.5-inch meter $68.65
2-inch meter $109.85
3-inch meter $206.10
4-inch meter $343.55
6-inch meter $686.95
8-inch meter $1,099.15
10-inch meter $1,580.15
COUNCIL RATE STRUCTURE GOALS
✓ Revenue stability and predictability
✓ Discourage wasteful use
✓ Stability and predictability of rates
✓ Fair allocation of total cost of service
among customer classes
✓ Reflect all present and future cost
H-4 Pg. 192
Usage (per unit cost)* Per Unit Cost
Multi-Family all use $6.73
Non-Residential all use $8.17
Landscape Irrigation all use $10.02
*ONE UNIT = 748 GALLONS
Sewer Fund
Overview – Sewer Fund
The RESIDENTIAL customer class is the largest group connected to the City’s wastewater system. Since
residential customers do not have irrigation meters, this customer class establishes a sewer cap during the
months of December, January, and February when outdoor irrigation is historically turned off or at its
lowest. This approach provides a reasonable correlation between the overall water usage and the part that
enters the sewer system. The sewer cap goes into effect the next July after it is established.
The impacts of the drought and the associated strict conservation mandates were physically impactful to
the wastewater conveyance system and the treatment processes. The lack of water to move the waste
through the conveyance system and the impacts of the reduced water on the treatment process es required
extraordinary process changes a nd operations and maintenance efforts to maintain compliance with public
health requirements.
Additionally, although the conservation restrictions were lifted after the drought, the sewer caps set during
the drought further impacted the Sewer Fund revenues into the next fiscal year. As the Sewer Fund is setting
aside funds as it prepares to pay for the debt service associated with the upcoming Water Resource Recovery
Facility Project, it was able to temporarily absorb the increased expenses and decreased revenues. In order
to remain on track to have sufficient revenue to pay the future debt service, maintain capital infrastructure
funding needs, and ensure future fiscal stability, the proposed rate structure and rates are necessary for
continued fiscal health. Although a drought rate has been developed through the rate structure process , it
has been put on hold at this time in an effort to reduce overall confusion associated with all the changes.
The drought rate will be brought forward for consideration in June 2019. The Sewer Fund’s current fiscal
status is stable.
Revenue Category 2017-18 Budget 2018-19
Budget
Variance
Sewer Service Charges $ 14,301,464 $ 14,838,195 3.8%
Agency Sales $ 875,000 $ 908,250 3.8%
Dev. Impact Fees $ 430,000 $ 300,000 -30.0%
Industrial User Charges $ 85,000 $ 85,000 0.0%
Other Revenue $ 373,000 $ 383,071 2.7%
Investments $ 50,000 $ 50,000 0.0%
Total $ 16,114,464 $ 16,564,516 2.8%
The previous drought conditions and the water conservation efforts by the community had effected indoor
water use and the sewer fund revenue in 2016-17 and 2017-18. The evaluation of the 2017-18 winter cap
H-5 Pg. 193
period revealed an increase from an average of 3.8 units used during December, January, and February to
4.3 units. The effects will be reflected in the revenue assumption for sewer service charges for 2018 -19.
However, the revenue assumptions shown for the five-year forecast are largely based on the new proposed
sewer rate structure and rates.
In coordination with a citywide study, updated wastewater development impact fees were adopted by the
City Council in 2017-18. The collection of these fees is wholly dependent on development activity and
therefore are budgeted for in a highly conservative manner based on historic lowest amount collected and
adjusted at mid-year if fee revenues are coming in higher than budget.
The Sewer Fund Operating Program budgets are summarized in Table B. The summary reflects the
operating program base budget amounts for FY 2018-19. The Operating Programs include all staffing
65%
25%
5%
2%3%2018-19 Sewer Revenue
Sewer Charges
Base Fee
Sales to Agencies
Impact Fees
Other revenue
WW
Admin
WW Pre-
Treatment
WW
Collection WRRF WQL Utilities
Services Total
2017-18 $1,050,34 $266,094.$1,126,92 $3,909,37 $788,377.$509,532.$7,650,64
2018-19 $900,717.$278,432.$1,127,56 $3,784,22 $792,953.$491,728.$7,375,61
Variance -14.25%4.64%0.06%-3.20%0.58%-3.49%-3.59%
$(1,000,000.00)
$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
$8,000,000.00
$9,000,000.00
Operating Budgets
H-6 Pg. 194
assumptions including CalPERS normal cost and unfunded liability payments for the Water Fund.
Important to note is that the increases due to unfunded liabilities have not been considered in the rates
setting process as they will be carried by operating reductions. As set forth in the City’s fiscal health plan,
the Water Resource Recovery Facility budget has been reduced by $80,000.
Fiscal Health Response Plan Strategy – Sewer Fund
Through the results of its energy efficiency project and process changes, the Sewer Fund will reduce
chemical and electrical expenses by $80,000 in 2018-19; year one of the City’s Fiscal Health Response
Plan. It will be responsible to meet its target of $540,000 in three years. Through an unprecedented water
meter replacement program, it is also expected to receive additional sewer charges revenue amounting to
$20,000 annually.
Capital Projects – Sewer Fund
While there is some minor level of project reprioritization occurring in 2018-19, the Sewer Fund’s capital
improvement program funding requirement remains at $58,686,840, as presented in the 2017-19 Financial
Plan. The estimated $140 million-dollar Water Resource Recovery Facility Project will go out for
construction bids in 2018-19.
Proposed Rate Structure and Rates – Sewer Fund
The City Council held several public meetings
through which it set rate structure goals and
determined the appropriate sewer rate structure
that met t hose goals. The result was a new rate
structure that adopts monthly base fees according
to meter size. The application of the winter water
use cap for RESIDENTIAL remains unchanged.
Incorporated into the rate study was a
comprehensive cost of services study to determine
the proposed rates.
RESIDENTIAL
Proposed Sewer Rate Structure Proposed Rate
Single Class Monthly Base Fee $18.69
Usage (per unit cost)* up to sewer cap $7.85
*ONE UNIT = 748 GALLONS
Fiscal Year Fund Program Reduction Type Amount
2019 Sewer WRRF Chemical
Charges
$30,000
2019 Sewer WRRF Electricity
Charges
$50,000
TOTAL: $80,000
COUNCIL RATE STRUCTURE GOALS
✓ Revenue stability and predictability
✓ Discourage wasteful use
✓ Stability and predictability of rates
✓ Fair allocation of total cost of service
among customer classes
✓ Reflect all present and future cost
H-7 Pg. 195
MULTI-FAMILY, NON-RESIDENTIAL
Proposed Sewer Rate Structure Proposed Rate
Base Fee by Water Meter Size Monthly Base Fee
3/4 inch or less $18.69
1-inch meter $31.21
1.5-inch meter $62.24
2-inch meter $99.62
3-inch meter $186.90
4-inch meter $311.56
6-inch meter $622.93
8-inch meter $996.72
10-inch meter $1,432.94
Usage (per unit cost)* all use $7.85
*ONE UNIT = 748 GALLONS
Whale Rock
The San Luis Obispo City Council does not approve the Whale Rock budget; it was adopted in April 2018
by the Whale Rock Commission, a Joint Powers Authority made up of the City, Cal Poly, and California
Men’s Colony. The City of San Luis Obispo provides Reservoir Operations and Administrative staffing for
the Whale Rock Commission. Any employee concession-related reductions associated with the Fiscal
Health Response Plan applied to City employees will be reflected in this fund’s program.
Parking Fund
I. Overview – Parking Fund
The Parking Fund review provides the updated midyear for 2017-18, supplemental budget for 2018-19 and
revised projections for 2019-20 through 2021-22. The Fund Analysis includes key issues and trends which
could have an impact on the overall health of the Fund. Staff is pleased to report that the Parking Fund is
balanced, and the revised 2018-19 supplemental budget is consistent with the operating assumptions
adopted in the 2017-19 Financial Plan with the changes made for the Fiscal Health Response Plan and
Council approved rate and fine increases.
The Fund continues to generate revenue exceeding the annual operating expenses; with the exception of
FY19-20 with the one-time down payment on the Palm Nipomo Parking Structure. Even with the one-time
expenditure, the overall working capital balance remains above the minimum 20% reserve level.
As previously assumed in the long-term forecast of the Parking Fund, systemwide parking meter, structure
and permit rate adjustments were presented to and approved by Council in 2017. The first of these rate
adjustments was implemented on January 1, 2018, and a second increase will occur in FY 2020-21. Council
also adopted minor fine increases related to on-street overtime and expired meter violations as well as
H-8 Pg. 196
passenger loading zone, space marking and no permit violations in 2017. These increases were also
implemented on January 1, 2018. The rate increases and fine increases were necessary to fund anticipated
expenses, capital projects, and debt service obligations for the Parking Fund, as was planned and approved
and are not directly related to the FHRP or unfunded CalPERS liability.
The Palm-Nipomo parking structure is programmed to begin construction during the 2019 -20 fiscal year.
The related debt, expenses and revenues are included in the Parking Fund projections. The Final
Environmental Impact Rep ort (FEIR) has been completed and is scheduled to be presented to Council in
the summer of 2018, and further direction is expected at that time. However, the project may be delayed if
determined that a new RFP is required for the design component of the p roject.
The Parking Fund also has anticipated the need to begin to set aside funds for the acquisition of replacement
properties for future surface parking or structured parking locations and has begun allocating funds in the
Parking CIP budget.
This fund review highlights a healthy fund in its ability to support both current and anticipated expenses,
capital projects, and debt service obligations while maintaining the minimum 20% reserve level in working
capital in accordance with the City Financial Management policies.
II. Fiscal Health Response Plan Strategy - Parking Fund
As part of The City’s Fiscal Health Response Plan (FHRP) to address the CalPERS unfunded pension
liability, the Parking Fund has identified new revenue sources, expense reductions and employee
concessions and projects meeting the target by FY 21-22. FY18-19 expense reductions will be made to
Contract Services in the amount of $10,000.
The Parking Fund will additionally fund the one-time payment of $328,381 in FY18-19 which is identified
for the additional principal prepayment of the CalPERS liability at the end of the FY 20-21 and is consistent
with the General Fund plan, and potentially achieves considerable savings over the remaining term of the
Unfunded Accrued Liability (UAL) repayment period for the Fund and the City.
The City will also analyze and determine if the Parking Fund could prepay the entire UAL balance
(approximately $2.6 million) and achieve additional savings over the entire UAL repayment period. Even
with this additional one-time payment, the Fund would maintain the reserve levels described below.
III. 2017-19 FINANCIAL PLAN, MID-YEAR & SUPPLEMENT BUDGET REVIEW
1. Operating Program Expenses
Below is the summary of the revised 2017-19 Financial Plan operating budget projections for the
Parking Services Enterprise Fund. Operating expenses for Palm-Nipomo are programmed to begin
during FY 2019-20 but could be delayed depending upon pre-construction design process and
approval delays or additional direction from council.
Fiscal Year Reduction Type Amount
2019 Contract Services $10,000
H-9 Pg. 197
2. Capital Improvement Program
Below is the summary of the revised 2017-19 Financial Plan Capital Improvement Project (CIP)
budget projections for the Parking Fund. The Palm Nipomo FEIR is being processed and is scheduled
to be considered by Council in summer 2018. The next stage after EIR approval is commencement
of final design of the project and preparation of bid documents. It was assumed the engineering firm
engaged for many years on this project would move on to final design services as originally identified
in the project proposals.
However, recent Court determinations have concluded that sequential service contracts may not be
permissible in long term and multi-phase projects such as what has occurred with Palm-Nipomo. The
City Attorney’s office is reviewing this issue and will make the determination if a separate RFP must
be circulated for design devices and another firm hired for this work. If this is required, the project
will likely be delayed, and increased costs will result as the new firm generated project documents.
For budgeting purposes, the Palm-Nipomo Parking Structure is projected to begin construction in the
fall of 2019. However, the actual expenses for construction may be delayed if the final design
services must be redone. Debt financing will be used to fund a significant portion of the Palm Nipomo
project and is anticipated in the Fund forecast.
Operating Program Expenses 2016-17 2017-18 2017-18 2018-19 2019-20 2020-21 2021-22
Actual Budget Mid Year Supplement Projected Projected Projected
Parking Staffing 1,008,923 1,060,385 1,060,403 1,086,900 1,119,500 1,153,100 1,187,700
Retirement Contribution 109,781 61,300 61,330 68,800 76,900 94,600 104,400
Unfunded CalPERS Liabilities - 157,700 157,652 171,800 193,300 207,500 222,300
Additional UAL Contribution - - - 328,400 - - -
Contract Services 600,146 694,500 969,794 693,700 714,500 735,900 758,000
Other Oper. Expenses 267,576 241,200 242,162 244,100 251,400 258,900 266,700
Palm-Nipomo Exp.- - - - - 64,900 267,200
Total Parking Services 1,986,426 2,215,085 2,491,341 2,593,700 2,355,600 2,514,900 2,806,300
Capital Improvement Programs 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Actual Mid Year Supplement Projected Projected Projected
Parking vehicle replacement 28,231 34,000 70,000 35,000
Replace PARCS Equipment 113,000 650,000 50,000 50,000 50,000
Vehicle License Plate Recognition 145,000
Marsh St Pkg Garage Circulation Impr.78,000
Parking Structure Assessment 76,667
Marsh Street Parking Structure Maint.575,000
structural assessment projects 50,000 50,000 150,000
Parking Lot Acquisition Program & Other 483,333 483,333 483,333
Palm-Nipomo Parking Structure 78,076 250,000 23,600,000
TRIP reduction Program 40,000 40,000 40,000
Telemetry Upgrades - Wayfinding 250,000 7,500 7,500
Meter Expansion/Upgrade/Replacement 327,500 237,500 215,000
IT Projects 13,742 18,854 4,069 633 9,749
Carryover from prior periods:
Palm-Nipomo Parking Structure 1,196,367
Other Projects carryover 286,717
Total Parking Capital Program 2,015,799 825,000 668,854 24,838,902 938,966 990,582
H-10 Pg. 198
As shown in the table above, staff anticipated the need for additional funding for the replacement of
the PARCS equipment in FY18-19. A final amount is not yet known, and there is expected to be
annual warranty costs thereafter. The Structural Assessment Project is anticipated to determine and
recommend maintenance and repair projects related to each of the three parking structures, and staff
expects to combine the Marsh Street Circulation Improvements project into these recommendations
and timeline. The Parking Fund anticipates the need to acquire additional land for future surface
parking lots and/or structures and has budgeted accumulating annual amounts for this purpose
beginning in FY 19-20.
3. Revenues
It is anticipated that Parking Fund revenues will continue to grow as the economy of the downtown
continues to improve and thrive. Consistent with previous adopted policies, revenue projections
assume a modest growth in usage rates. The table below includes revenue increases in the 2017-18
mid-year budget, 2018-19 supplement, and again in FY20-21 for rate increases approved by Council.
Additional revenue is projected upon the opening of the Palm Nipomo Structure in FY21 -22.
Some revenue loss related to the closure of Lot 14 for the construction of the Palm Nipomo Structure
have been forecast. However, redistribution of those parkers who are displaced will offset most of
the lost revenue as drivers utilize other parking locations within the city.
4. Debt Service
Debt Service payments for the Palm-Nipomo Parking Structure are scheduled to begin in FY 2019-
20. Annual payments for Palm-Nipomo are estimated to average $1.2 million but will depend upon
final debt financing terms. The next debt service to be retired is for the Marsh Street Parking Structure
expansion, which will occur in August 2031.
Revenue 2016-17 2017-18 2017-18 2018-19 2019-20 2020-21 2021-22
Actual Budget Mid Year Supplement Projected Projected Projected
Service Charges
Parking Meter Collections
Lots 142,057 140,400 152,500 166,000 147,800 171,900 171,900
Streets 1,621,061 1,648,100 1,787,000 1,927,800 1,927,800 2,236,600 2,236,600
Parking Structure Collections 1,336,165 1,489,500 1,658,900 1,798,100 1,798,100 2,245,700 2,509,700
Long Term Parking Revenue 810,487 795,000 890,800 1,032,600 1,138,200 1,279,400 1,279,400
Lease Revenue 486,256 502,900 500,500 500,600 500,600 500,600 505,000
Parking In-Lieu Fees (184,721) 20,400 20,200 20,200 20,200 20,200 20,200
Other Service Charges (95,558) (89,100) (113,100) (130,900) (130,900) (174,200) (174,200)
Total Service Charges 4,115,747 4,507,200 4,896,800 5,314,400 5,401,800 6,280,200 6,548,600
Investment and Property Revenue 59,757 48,000 50,000 68,000 62,900 32,400 34,900
Fines and Forfeitures 530,644 587,300 616,500 634,900 634,900 634,900 634,900
Other Revenue 13,170 100 100 100 100 100 100
Total Revenues 4,719,318 5,142,600 5,563,400 6,017,400 6,099,700 6,947,600 7,218,500
H-11 Pg. 199
Debt Service 2016-17 2017-18 2017-18 2018-19 2019-20 2020-21 2021-22
Actual Budget Mid Year Supplement Projected Projected Projected
Marsh Expansion until Aug 2031 419,729 418,856 418,856 417,955 417,027 416,071 415,085
919 Palm until Jun 2036 539,899 538,755 538,755 539,803 540,275 540,162 539,320
Palm Nipomo until Jun 2048 - - - - 1,086,023 1,454,105 1,454,105
Dispatch Ctr Upgrade until June 2039 9,759 9,761 9,761 9,700 4,200 4,200 4,200
969,387 967,372 967,372 967,458 2,047,525 2,414,538 2,412,710
IV. ASSUMPTIONS
The following assumptions have been programed into the long-term forecast of the Parking Fund.
1. General Assumptions
a. Minimum working capital reserve should equal at least 20% of the total Operating Program
expenditures according to the City's fiscal policy and Standard and Poor's rating criteria. Based
upon this policy, the minimum reserve level should be approximately $575,000. The year -end
working capital greatly exceeds the minimum reserve policy levels in all actual, budget and
projected years.
b. Consistent with previously adopted policies, Parking Fund Revenue sources assume a very
conservative annual usage growth rate over the entire projection period. The multi-year rate
increases approved by cou ncil (thru FY20-21) are in accordance with the Fund’s periodic rate
adjustment plan.
2. Parking Lots
a. Meter rate increases were approved and effective January 1, 2018, and July 1, 2020.
b. Parking revenues from Lot 14 will cease due to construction of the Palm-Nipomo parking
structure in FY 2019-20, but will be largely absorbed in other locations.
3. On-Street Parking
No major changes in on-street parking assumptions have been programmed.
4. Parking Structures
a. Parking structure hourly, monthly and quarterly rate increas es were approved by council and
effective January 1, 2018, and July 1, 2020.
b. Additional revenue from the installation of the new PARCS system is expected but not
specifically included as the actual impact has not been determined.
c. It is anticipated that some of the vehicles that would have parked in Lot 14 will instead park in
garages due to the loss of lot parking spaces.
d. A structural assessment study will be conducted in the summer of 2018 to determine the
condition of the parking structures and issue a wr itten report with recommendations for
scheduled and one-time maintenance needs to extend the useful life of each structure and
H-12 Pg. 200
minimize emergency repairs. The CIP budget includes funds for these anticipated yet
undetermined needs.
5. Long-Term Parking
a. Residential permits and structure monthly and quarterly permit rates increases were approved in
July 2017, and effective January 1, 2018 and July 1, 2020.
b. 10-Hour permit rate increases were approved in July 2017 and effective January 1, 2018, July 1,
2019 and July 1, 2020. While these permits continue to sell out, the approved permit rate
increases cause the projected revenue to increase in each fiscal year thru FY20 -21.
6. Parking Leases
a. Section 6 of the Memorandum of Agreement between the City of San Luis Obispo and Garden
Street SLO Partners, L.P. states that the developer will pay an annual rent. The fund review
projected this amount at approximately $220,000. The annual base rent shall be increased on the
first day of every third fiscal year. The next increase will occur in FY18-19. Once the
repayment amount has reached $1.86 million, future payments will be directed to the General
Fund for the remainder on the agreement. This is projected to occur in FY23-24.
7. Parking In-Lieu
No Parking In-Lieu fee assumptions have been programed as this revenue is unpredictable and
inconsistent from year-to-year.
8. Investment Earnings
Assumes projected interest earnings of 0.5% annually.
9. Parking Fines
a. Fine amount increases on expired meter, overtime, passenger loading zone, sp ace marking and
no permit violations were approved in July 2017 and implemented on January 1, 2018. One
half-year impact is projected in FY17-18 and then full year impacts projected beginning FY18-
19.
b. Revenue from the parking citations issued by the Police Department was approximately
$65,000 for FY 2016-17, and is expected to remain consistent annually. This revenue is all
transferred from the Parking Fund to the General Fund.
c. State and County surcharges amounting to $13 per paid parking citation are i ncluded in the base
fine amount, but then deducted from fine revenues total and listed separately in the table.
d. No decrease in fine revenues due to the loss of Lot 14 for the construction of Palm-Nipomo
parking structure is projected.
10. Operating Program & General Government Expenses
a. Retirement contributions doubled from FY 16-17 to the FY 17-18 budget to account for the
CalPERS unfunded liability increased contribution. Beginning FY 18-19, the level decreases by
70% starting in FY 18-19, to below FY 16-17 actuals levels.
H-13 Pg. 201
b. A one-time lump sum payment of approximately $328,381 in FY 2018-19 to pay
toward the principal of the CalPERS liability for the Fund .
c. Contract Services increased significantly in the FY 17-18 mid-year budget due to one-time
anticipated expenses and decrease in the FY 2018-19 supplement to original levels, and then
increase 3% thereafter for anticipated changes in established contracted rates including CPI
adjustments.
d. General Government expenses are projected to decrease from $684,603 to $534,415 in FY
2017-18 due to recent changes in the City’s methodology for calculating direct and indirect
costs in the Cost Allocation Plan. Thereafter the annual payment is projected to increase 2 -4%
annually.
e. An annual payment of approximately $170,000 is budgeted for FY17-18 and FY 18-19 for this
Fund’s portion of Enterprise Resource Planning (ERP ) System being implemented by the city.
11. Capital Improvement Plan (CIP) Expenses
a. The Palm Nipomo parking structure construction was estimated at $23.6 million in 2017-18.
The projections include a $6,000,000 contribution from working capital and $17,600,000
proceeds from debt financing or Bond Issuance. Final amounts will be determined as the project
construction documents move forward in the City process.
b. Assumes Finance and Information Technology capital projects that have associated Parking
Fund support will occur in the projected years.
c. The replacement PARCS system is anticipated completion in FY 18-19 with the increased
funding of $650,000 added.
d. A vehicle license plate recognition program ($145,000) will occur as a carryover project in FY
2017-18 and is expected to improve operational efficiency and enhance enforcement in the
Downtown and residential neighborhoods.
e. The Structural Assessment will be completed in FY 18-19, and the accompanying report will be
used to identify specific projects currently budgeted in other capital categories.
12. Debt Service
The Palm Nipomo structure related debt assumes a 30-year level debt service, net proceeds of
$17,600,000 and bond issuance in FY 19-20. Interest payment and principal payment is due
beginning in FY 2020-21, estimated at $1.2 million annually.
V. 2018 Parking Fund Analysis - Changes in Financial Position
H-14 Pg. 202
CHANGES IN FINANCIAL POSITION - PARKING FUND BUDGET
Actual Mid Year Adopted Revised Projected Projected Projected
2016-17 2017-18 2018-19 2018-19 2019-20 2020-21 2021-22
Revenues
Service Charges
Parking Meter Collections
Lots 142,057 152,500 141,900 166,000 147,800 171,900 171,900
Streets 1,621,061 1,787,000 1,664,700 1,927,800 1,927,800 2,236,600 2,236,600
Parking Structure Collections 1,336,165 1,658,900 1,504,400 1,798,100 1,798,100 2,245,700 2,509,700
Long Term Parking Revenue 810,487 890,800 802,900 1,032,600 1,138,200 1,279,400 1,279,400
Lease Revenue 486,256 500,500 509,800 500,600 500,600 500,600 505,000
Parking In-Lieu Fees (184,721)20,200 20,600 20,200 20,200 20,200 20,200
Other Service Charges (95,558) (113,100) (90,000) (130,900) (130,900) (174,200) (174,200)
Total Service Charges 4,115,747 4,896,800 4,554,300 5,314,400 5,401,800 6,280,200 6,548,600
Investment and Property Revenue 59,757 50,000 52,000 68,000 62,900 32,400 34,900
Fines and Forfeitures 530,644 616,500 593,200 634,900 634,900 634,900 634,900
Other Revenue 13,170 100 100 100 100 100 100
Total Revenues 4,719,318 5,563,400 5,199,600 6,017,400 6,099,700 6,947,600 7,218,500
Expenditures
Operating Programs
Transportation 1,986,426 2,491,300 2,280,211 2,593,700 2,355,600 2,514,900 2,806,300
General Government 684,603 622,200 622,189 535,400 554,900 574,500 589,000
Total Operating Programs 2,671,029 3,113,500 2,902,400 3,129,100 2,910,500 3,089,400 3,395,300
Capital Improvement Plan Projects 110,617 2,720,100 650,000 668,900 24,838,900 939,000 990,600
Debt Service 969,388 967,500 967,500 967,500 2,047,500 2,414,500 2,412,700
Total Expenditures 3,751,034 6,801,100 4,519,900 4,765,500 29,796,900 6,442,900 6,798,600
Other Sources (Uses)
Cashflow adjustements for working capital
Operating Transfers In 0 0 0 0 0 0 0
Operating Transfers Out 0 (157,644) (169,865) (169,865)0 0 0
Proceeds from Debt Financing 0 0 0 0 17,600,000 0 0
Total Other Sources (Uses)0 (157,644) (169,865) (169,865)17,600,000 0 0
Revenues and Other Sources: Over
(Under) Expenditures and Other Uses 968,284 (1,395,344)509,835 1,082,035 (6,097,200)504,700 419,900
Working Capital, Beginning of Year 12,255,675 13,223,959 11,828,615 11,828,615 12,910,650 6,813,450 7,318,150
Working Capital, End of Year 13,223,959 11,828,615 12,338,450 12,910,650 6,813,450 7,318,150 7,738,050
Reserve 534,206 622,700 580,480 625,820 582,100 617,880 679,060
Unreserved Working Capital 12,689,753 11,205,915 11,757,970 12,284,830 6,231,350 6,700,270 7,058,990
H-15 Pg. 203
Transit Fund
Overview – Transit Fund
This report presents a supplemental review of the annual Transit Enterprise Fund for FY17-18 and a forecast
for FY18-19 through FY21-22. This forecast looks at key issues and trends which could have an impact
on the overall health of the fund. In this regard, staff is pleased to report that the Transit Fund remains
balanced, and the FY18-19 budget is consistent with operating assumptions adopted in the 2017-19
Financial Plan, despite the impacts from the pension liability. However, capital projects, such as fleet
replacement, will continue to be highly dependent on grant funds. The fund is healthy, and the assumptions
have been updated based upon the following approved changes.
Below is a summary of changes in status of the Transit Fund and transit operations which impact the Fund
since the adoption of the 2017-19 Financial Plan:
• January 17, 2017 City Council authorized L ow Carbon Transit Operations Program (LCTOP) grant
funds for an electric vehicle.
• April 4, 2017 City Council approved the first fare increases in over nine years, this will help ensure
the Fund’s required 20% farebox recovery is met and which is needed in order to continue to secure
Federal and State funds.
• June 18, 2017 approximately 85% of the Short Range Transit Plan (SRTP) recommended service
changes for road network were also implemented.
• July 1, 2017 a two-year extension of the University Riders Subsidy Program with CalPoly went
into effect.
• August 19, 2017 City Council adopted resolution for P ublic Transportation Modernization
Improvement and S ervice Enhancement Act (PTMISEA) Grant funds for new solar powered bus
shelters. This initial project is nearly complete.
• Nov 5, 2017 SLO Transit implemented a second round of SRTP recommended schedule changes
to increase service frequencies.
• January 16, 2018 City Council approved resolution for receipt of new CA Road Repair and
Accountability Act Senate Bill 1 (SB1) Capital and Operating assistance revenue.
• April 4, 2018 City Council approved a contract amendment with First Transit Inc. to reflect
operational expenditures reflective of new SB1 state revenue operating assistance.
The changes noted above are either consistent with assumptions made in the 2017-19 Financial Plan, further
confirm those assumptions, or in the case of SB 1 funding or other grants, improve the financial status of
the Fund.
1. Revenues – Transit Fund
a. Federal Transit Administration
Federal Transit Assistance (FTA) funding is formula -based upon population and service level
categories. SLO Transit is also part of the Federally recognized SLO Central Urbanized Area that
receives additional FTA funding for performing above industry standards, known as STIC
funding. The Fund Analysis projects FTA funding of $1,441,620 in 2017-18 and $1,456,036 in
2018-19. This Federal funding will be used for operating assistance of SLO Transit services,
preventive maintenance and small capital projects.
b. Transportation Development Act
The California Transportation Development Act (TDA) is comprised of two sources of funding
for transportation programs, Local Transportation Funds (LTF) and State Transportation
H-16 Pg. 204
Assistance (STA) funding. LTF is derived from ¼ cent collected in retail sales taxes. STA is
derived from the statewide sales tax on diesel fuel. Both funds are distributed to the regions by
the State. The County Auditor LTF projections are modestly better than originally estimated for
2017-18 and see a significant increase for 2018-19. Part of these increases are a result of SB-1
revenue enhancements. These funds will support transit services
c. Fare Revenue
On April 4, 2017, City Council approved the first comprehensive fare increase in over nine years.
The increase in fares is aimed to keep pace with growing annual operational costs and the
expansion of the transit service program. Specifically, the goal is to recover the mandated 20%
operating cost via locally generated revenues and which are need for continual C alifornia transit
assistance funding and ultimately Federal funding assistance.
Inherently however, fare increases are temporarily disruptive to ridership. The same is true of
service changes such as those recommended by the Short-Range Transit Plan (SRTP) implemented
on June 18, 2017. Currently, SLO Transit is experiencing a dip in ridership which is reducing the
amount of revenues collected, particularly from the general public. TDA and STA regulations offer
a three-year reprieve from the 20% farebox recovery mandate as to allow ridership to “normalize.”
The City intends to seek concurrence from SLOCOG on waivers of the 20% mandate as a result of
the major SRTP changes. The goal of achieving the 20% mandate will remain but penalties for not
making that threshold will not be assessed.
d. Cal Poly Subsidy
An additional two-year extension of the five-year Subsidy Agreement with Cal Poly was enacted
for July 1, 2017 extending to June 30, 2019. The extension provides an annual 3% increase in
subsidy each year for the two-year period and an additional one-time payment given by the
University supporting the November 5th service changes. Staff continues to work with the
University on the next long-term agreement.
2. Operating Expenses – Transit Fund
a. Contract Services
On July 1st, 2016 the City entered into a four -year agreement with First Transit LLC for a transit
Operations and Maintenance contract. Service cost incrementally increases each year by
approximately 3%. The cost projections in the fund forecast project this as well as changes in
vehicle operating hours which is the basis for reimbursement of services provided.
b. Fuel
Fuel costs continue to be volatile and are difficult to predict. While fuel costs were lower early
this fiscal year, they appear to be returning to higher levels very quickly. Fund forecasts for fuel
assume a $3.40 per gallon. Should fuel prices increase significantly above staff projections for
fuel prices per gallon, staff will return to Council with identified service-level reductions or
possible use of Transit Fund working capital reserves to adjust the budget.
c. General Government
The newly revised Cost Allocation Plan resulted in a slight increase in 2017 -18 from the previous
year. The Cost Allocation Plan, which also affects the performance of farebox ratio, is
considered a Central Service plan by the FTA and does not require FTA review or certification.
3. Capital Projects – Transit Fund
H-17 Pg. 205
The Transit Fund analysis anticipates a conservative level of Federal funding apportionment the next fiscal
years. Capital expenditures will be limited to projects that can be funded from grants, keeping the local
match required to a minimum and preserving as much for operating expenses as possible.
4. Uncertainties - Transit Fund
a. Regional Transit Authority (RTA) Participation
The fund analysis assumes a modest increase to City funding of RTA services. Depending upon
RTA need, state funding available for use by SLO Transit could be less if RTA requires increased
funding beyond amounts assumed in the fund forecast. Similar to SLO Transit, RTA faces a
significant challenge in funding vehicle replacements over the next 5-year period. The City is
working with RTA and SLOCOG to address this capital need and identify possible funding options
for replacing vehicles.
b. California Air Resource Board – Zero Emission Goal
The Air Resource Board, California’s air quality regulatory body, has started with the development
of its Zero Emission fleet goal for heavy duty vehicles. In this goal, they are proposing that all
heavy-duty vehicles (buses included) move to electric powered vehicles by 2030, in order to meet
state air quality attainment standards. The current price of an EV vehicle is still well over $1 million
CHANGES IN FINANCIAL POSITION - TRANSIT FUND SUPPLEMENT
Actual
2016-17
Adopted
2017-18
Adopted
2018-19
Revised for
Supplement
2018-19
Projected
2019-20
Projected
2020-21
Projected
2021-22
Revenues
FTA Grants 2,527,640 1,399,640 1,399,640 1,456,036 1,427,633 1,441,909 1,456,328
TDA Revenues (LTF)1,299,676 1,160,677 1,046,313 1,548,644 1,533,158 1,548,489 1,563,974
TDA Revenues (STA)143,846 143,846 287,935 285,055 288,476 291,938
Other Grants (e.g. SB1,LCTOP, etc)174,600 1,060,000 174,600 179,838 185,233 190,790
Service Charges 710,291 787,914 799,715 727,878 735,156 727,805 720,527
Investment and Property Revenues 18,012 5,800 5,800 5,800 5,800 5,800 5,800
Other Revenues 8,000 8,000 8,000 8,000 8,000 8,000
TOTAL REVENUES:3,430,619 3,680,477 4,463,314 4,208,893 4,174,640 4,205,712 4,237,357
Expenditures
Operating Programs
Transportation 2,885,360 3,321,189 3,411,092 3,615,741 3,710,257 3,773,902 3,811,641
General Administration 528,174 - - - - - -
General Government 288,100 319,987 319,987 319,987 326,387 332,914 339,573
Operating Transfers Out 0 38,229 41,634 - - - -
Retirement Contribution 22,956 22,956
Discount Rate Adjustment 1,884
Capital Improvement Plan Projects
Motion Project 58,081 58,081 58,081
Motion Project - On Going 21,020
AVL 0 319,987 - 173,000 - - -
Bus Shelter 0 - - - - - -
Fleet 0 - 1,141,570 - - 210,000 210,000
TOTAL EXPENDITURES:3,701,635 4,080,429 5,018,224 4,166,809 4,036,643 4,106,817 4,151,214
Over / Under Analysis (271,016)(399,952) (554,910) 42,083 137,997 98,896 86,143
Working Capital, Beginning of Year 2,904,766 2,377,866 2,377,866 2,233,648 2,275,731 2,413,728 2,512,624
Working Capital, End of Year Fund
Reserves
2,633,750 1,977,914 1,822,956 2,275,731 2,413,728 2,512,624 2,598,767
Reserve (20% of operating)740,327 816,086 1,003,645 833,362 807,329 821,363 830,243
Unreserved Working Capital 1,893,423 1,161,828 819,311 1,442,369 1,606,400 1,691,261 1,768,524
H-18 Pg. 206
per vehicle (more than 40% more than a clean diesel vehicle) so the ability to adopt and implement
this goal is still out of reach for most transit agencies.
5. Fiscal Health Response Plan Impacts to the Transit Fund
2018-19 Financial Plan Supplement – Year One
Fund Program Reduction
Type
Amount
Transit Source of Supply Fuel $35,000
Consistent with the General Fund requirements to reduce operating expenses to meet FHRP objectives, by
FY20-21 the Transit Enterprise Fund must realize a n annual saving/cost offset equal $42,500. This amount
is achieved with the same employee concession assumptions and reduct ions applicable to the General Fund,
and a reduction of $35,000 in the fuel budget beginning in FY18-19. The fuel budget assumptions can be
attained by a combination of more efficient routing established in the Short-Range Transit Plan (offset
somewhat by additional miles driven) and the price per gallon assumptions made in the FY17-19 budget.
There should be no impact on the public as a result of these FHRP associated changes absent any significant
market fluctuations in fuel prices.
Transit will fund an additional payment totaling $79,628 over the next 3-year period for additional principal
prepayment of the CalPERS liability payable at the end of FY20-21 which is consistent with the General
Fund plan, and potentially achieves considerable savings over the remaining term of the Unfunded Accrued
Liability (UAL) repayment period for the Fund and the City.
Additionally, the City will analyze and determine if the Transit Fund could prepay the entire UAL balance
(approximately $616,000), which would result in the elimination of the annual contributions budgeted to
cover the unfunded liability from the Fund’s operating budget. By paying the entire UAL balance, the fund
would save approximately $1.2 million in interest costs over the course of the 30 years. Furthermore, this
option is the only allowable prepayment option for the Transit Fund as Federal rules prohibit investments
and expenditures in a Trust Fund or other funds that are not clear obligations of the Transit Fund. Pre-
payment to PERS is an allowable expense a nd is compliant with State and Federal funding stipulations for
expenses of this nature. It should be noted that even with prepayment, there could be future adjustments to
the Transit Funds obligation which could result in additional obligations beyond the amount covered in the
prepayment. Even with this additional one-time payment, the Fund would maintain the reserve levels as
prescribed by the City.
6. Outlook – Transit Fund
Overall, funding continues to be lean and highly dependent upon Federal and State grants and their final
budget appropriations. The currently forecast funding, along with the Cal Poly agreement and farebox
recovery, allow SLO Transit to continue its existing level of service. Capital expenditures will be limited
to projects that can be funded from grant revenues, keeping the local match required to a minimum and
preserving as much for operating expenses as possible.
Looking ahead to the FY 2019-21 Financial Plan, Transit Fund issues that will be evaluated include;
• Assumptions regarding Cal Poly ridership given shift to more students, fewer cars allowed on
campus and more on-campus housing
• Details of future City-Cal Poly Transit Agreement
• Status of SB – 1 funding for Transit
• Continued implementation of Short-Range Transit Plan
• Unfor eseen changes to Federal and State investments in Transit
H-19 Pg. 207
• Long-term implications of requirements for all-Electric busses
The City of San Luis Obispo’s Transit Fund, in its current state, continues to ensure there is a viable mobility
option for residents and visitors to the area. A wide range of users continue to receive services, including
the: transit-dependent, elderly, disabled, students and commuters.
H-20 Pg. 208
SECTION I: DEBT SERVICE OB LIGATIONS
2012 Refunding 2001 Series C Lease Revenue Bonds
•Purpose: Purchase property and build athletic fields; purchase property for police station expansion;
purchase Downtown Plan properties
•Maturity Date: 2029
•Original Principal Amount: $6,745,000
•July 1, 2017 Principal Outstanding: $3,725.000
•Debt Service Payment 2017-18 $385,075
•Debt Service Payment 2018-19 $387,875
•Interest Rate: 2.0% to 4.0%
•Funding Source: General Fund
2001 State Infrastructure Bank (CIEDB) Loan
•Purpose: Expand Marsh Street parking structure
•Maturity Date: 2031
•Original Principal Amount: $7,765,900
•July 1, 2017 Principal Outstanding: $4,590,132
•Debt Service Payment 2017-18 $418,856
•Debt Service Payment 2018-19 $417,955
•Interest Rate: 3.37% (including annual loan fees)
•Funding Source: Parking Fund
2004 State Water Control Board Loan
•Purpose: Construct water reuse project.
•Maturity Date: 2025
•Authorized Principal Amount: $8,883,200
•July 1, 2017 Principal Outstanding: $3,767,598
•Debt Service Payment 2017-18 $525,457
•Debt Service Payment 2018-19 $525,457
•Interest Rate: 2.5%
•Funding Source: Water Fund
2006 Water Revenue Bonds
•Purpose: Water Treatment Plant Improvements
•Maturity Date: 2036
•Original Amount: $16,905,000
•July 1, 2017 Principal Outstanding: $12,975,000
•Debt Service Payment 2017-18 $1,033,548
•Debt Service Payment 2018-19 $1,035,348
•Interest Rate: 3.75% to 4.625%
•Funding Source: Water Funds
I-1 Pg. 209
2008 Installment Sale Agreement-SunTrust
• Purpose: Tank Farm Lift Station and Force Main Project
• Maturity Date: 2024
• Original Amount: $2,050,000
• July 1, 2017 Principal Outstanding: $1,110,000
• Debt Service Payment 2017-18 $183,680
• Debt Service Payment 2018-19 $182,695
• Interest Rate: 4.2%
• Funding Source: Sewer Funds
2009 State Infrastructure Bank (CIEDB) Loan
• Purpose: Tank Farm Lift Station and Force Main Project
• Maturity Date: 2038
• Original Principal Amount: $10,000,000
• July 1, 2017 Principal Outstanding: $7,817,345
• Debt Service Payment 2017-18 $557,481
• Debt Service Payment 2018-19 $556,512
• Interest Rate: 3.25% (including annual loan fees)
• Funding Source: Sewer Fund
2012/2002 Water Revenue Refunding Bonds
• Purpose: Upgrade the City's water treatment plant to meet water quality standards.
• Maturity Date: 2023
• Original Principal Amount: $10,890,000
• July 1, 2017 Principal Outstanding: $2,990,000
• Debt Service Payment 2017-18 $569,600
• Debt Service Payment 2018-19 $571,600
• Interest Rate: 2.0% to 4.0%
• Funding Source: Water Fund
2014 US Bank Wastewater Lease
• Purpose: Construct energy conservation improvements at this facility
• Maturity Date: 2029
• Original Principal Amount: $7,479,000
• July 1, 2017 Principal Outstanding: $6,256,467
• Debt Service Payment 2017-18 $618,363
• Debt Service Payment 2018-19 $618,176
• Interest Rate: 2.9%
• Funding Source: Sewer Fund
I-2 Pg. 210
2010 Fire Engine/Truck Lease Financing
• Purpose: Purchase of fire apparatus with 100-foot ladder
• Maturity Date: 2020
• Original Amount: $1,080,000
• July 1, 2017 Principal Outstanding: $360,000
• Debt Service Payment 2017-18 $125,764
• Debt Service Payment 2018-19 $127,326
• Interest Rate: 2.99%
• Funding Source: General Fund
2014 Fire Engine Lease Financing
• Purpose: Purchase of replacement fire apparatus
• Maturity Date: 2018
• Original Amount: $548,351
• July 1, 2017 Principal Outstanding: $225,328
• Debt Service Payment 2017-18 $116,702
• Debt Service Payment 2018-19 $116,702
• Interest Rate: 2.108%
• Funding Source: General Fund
2014 LOVR Lease Revenue Bonds
• Purpose: Expand the LOVR/101 Interchange Overpass
• Maturity Date: 2044
• Original Amount: $7,580,000
• July 1, 2017 Principal Outstanding: $7,285,000
• Debt Service Payment 2017-18 $422,606
• Debt Service Payment 2018-19 $422,881
• Interest Rate: 3.0% to 4.0%
• Funding Source: General Fund
2015 Copiers & Mobile Data Equipment - Lease Financing
• Purpose: Purchase of photocopiers
• Maturity Date: 2020
• Original Amount: $102,304
• July 1, 2017 Principal Outstanding: $41,112
• Debt Service Payment 2017-18 $21,386
• Debt Service Payment 2018-19 $21,386
• Interest Rate: 1.7%
• Funding Source: General Fund
• Purpose: Mobile Data Computers for Police and Fire Vehicles
• Maturity Date: 2020
• Original Amount: $693,000
• July 1, 2017 Principal Outstanding: $392,516
I-3 Pg. 211
Debt Service Payment 2017‐18 $177,849
Debt Service Payment 2018‐19 $177,849
Interest Rate: 1.5% to 1.7%
Funding Source: General Fund
2016 Fleet Replacement Fund Financing
Purpose: Purchase replacement fire engine 2 and replacement street sweeper
Maturity Date: 2021
Original Amount: $1,141,468
July 1, 2017 Principal Outstanding: $920,806
Debt Service Payment 2017‐18: $240,068
Debt Service Payment 2018‐19: $240,067
Interest Rate: 1.70%
Funding Source: General Fund
2018 Lease Revenue Refunding Bond
Purpose:
Maturity Date: 2039
Original Amount: $16,905,000
July 1, 2017 Principal Outstanding: $0
Debt Service Payment 2017‐18: $0
Debt Service Payment 2018‐19: $1,994,037
Interest Rate: 3.00% to 5.00%
Funding Source: General, Water, Sewer, Parking Funds
I-4 Pg. 212
DEBT SERVICE REQUIREMENTS
ANNUAL PAYMENTS BY SOURCE budget book
Current
2016-17
Current
2017-18
Adopted
2018-19 % change
Revised
2018-19 % change
GENERAL FUND
2005/1996 Lease Revenue Bonds
Principal 305,000 320,000 330,000 3% - -100%
Interest 161,789 149,589 136,789 -9% - -100%
2006 Lease Revenue Bonds-919 Palm Street
Principal 190,900 197,800 207,000 5% - -100%
Interest 269,014 261,140 252,832 -3% - -100%
2009 Lease Revenue Bonds - Public Safety EOC
Principal 525,140 546,315 563,255 3% - -100%
Interest 301,470 280,464 257,246 -8% - -100%
2012/2001 Revenue Refunding Bonds Series B & C
Principal 225,000 235,000 245,000 4% 245,000 0%
Interest 160,350 150,075 142,875 -5% 142,875 0%
Fire Engine/Truck Lease Financing
Principal 115,000 115,000 120,000 4% 120,000 0%
Interest 14,203 10,764 7,326 -32% 7,326 0%
Fire Engine Lease Financing 2014
Principal 108,751 111,339 113,989 2% 113,989 0%
Interest 7,951 5,363 2,713 -49% 2,713 0%
Capital Lease I.T. Equipment 2015
Principal 191,099 193,395 196,442 2% 196,442 0%
Interest 7,950 5,840 2,794 -52% 2,794 0%
LOVR Lease Revenue Bonds 2014
Principal 150,000 155,000 160,000 3% 160,000 0%
Interest 272,181 267,606 262,881 -2% 262,881 0%
Fleet Replacement Fund 2017
Principal 220,663 224,414 228,229 2% 228,229 0%
Interest 19,405 15,654 11,839 -24% 11,839 0%
Dump Truck/Street Sweeper Replacement 2018
Principal - 109,000 113,000 4% 124,339 10%
Interest - 21,000 16,000 -24% 16,888 6%
Fire Engine Replacement 2019
Principal - - 115,000 0% 115,000 0%
Interest - - 21,000 0% 21,000 0%
Insurance Retrospective Charges
Principal - -
2018 Lease Revenue Refunding Bond
Principal - - - 0% 956,150 0%
Interest - - - 0% 470,262 0%
Total Debt Service Fund 3,245,866 3,374,758 3,506,210 4%3,197,727 -9%
WATER FUND
2004 Water Reuse Project Loan
Principal 420,748 431,267 442,049 3% 442,049 0%
Interest 104,709 94,190 83,408 -11% 83,408 0%
2006 Water Treatment Plant Upgrade
Principal 435,000 455,000 475,000 4% 475,000 0%
Interest 595,948 578,548 560,348 -3% 560,348 0%
2009 Lease Revenue Bonds - Public Safety EOC
Principal 41,540 43,215 44,555 3% - -100%
Interest 23,847 22,185 20,349 -8% - -100%
2012 Revenue Refunding Bonds
Principal 435,000 450,000 470,000 4% 470,000 0%
Interest 137,000 119,600 101,600 -15% 101,600 0%
2018 State Revolving Fund (Replace Resv #2)
Reserve Payment - 437,271 0% 437,271 0%
2018 State Revolving Fund (Water Treatment Plant)
Reserve Payment - 321,073 0% 321,073 0%I-5 Pg. 213
DEBT SERVICE REQUIREMENTS
ANNUAL PAYMENTS BY SOURCE budget book
Current
2016-17
Current
2017-18
Adopted
2018-19 % change
Revised
2018-19 % change
2018 Lease Revenue Refunding Bond
Principal - - - 0% 43,550 0%
Interest - - - 0% 12,946 0%
Total Water Fund 2,193,792 2,194,005 2,955,653 35%2,947,245 0%
SEWER FUND
2008 SunTrust Bond
Principal 135,000 140,000 145,000 4% 145,000 0%
Interest 49,455 43,680 37,695 -14% 37,695 0%
2009 CIEDB State Loan - Tank Farm Lift Station
Principal 266,031 274,678 283,605 3% 283,605 0%
Interest 292,387 282,803 272,907 -3% 272,907 0%
2009 Lease Revenue Bonds - Public Safety EOC
Principal 47,120 49,020 50,540 3% - -100%
Interest 27,050 25,166 23,082 -8% - -100%
2014 US Bank Wastewater Lease
Principal 430,859 443,354 456,211 3% 456,211 0%
Interest 187,685 175,009 161,965 -7% 161,965 0%
2018 Lease Revenue Refunding Bond
Principal - - - 0% 49,400 0%
Interest - - - 0% 14,685 0%
Total Wastewater Fund 2,186,327 2,133,746 2,078,865 -3%2,069,328 0%
PARKING FUND
2001 State Infrastructure Bank (CIEDB) Loan
Principal 251,682 259,408 267,372 3% 267,372 0%
Interest 168,048 159,448 150,583 -6% 150,583 0%
2006 Lease Revenue Bonds-919 Palm Street
Principal 224,100 232,200 243,000 5% - -100%
Interest 315,799 306,555 296,803 -3% - -100%
2009 Lease Revenue Bonds - Public Safety EOC
Principal 6,200 6,450 6,650 3%- -100%
Interest 3,560 3,311 3,037 -8% - -100%
2018 Lease Revenue Refunding Bond
Principal - - - 0% 200,900 0%
Interest - - - 0% 246,145 0%
Total Parking Fund 969,389 967,372 967,445 0%865,000 -11%
TOTAL DEBT SERVICE REQUIREMENTS 8,595,374 8,669,881 9,508,173 10%9,079,299 -5%
Note: All General Fund debt service payments are accounted for in the Debt Service Fund.
I-6 Pg. 214
DEBT SERVICE
COMPUTATION OF LEGAL DEBT MARGIN
Gross Assessed Valuation (2017-18)$8,203,159,369
Legal Debt Limit - 3.75% of Gross Assessed Valuation (See Note Below)$307,618,500
Long-Term Debt:
Revenue Bonds Secured by Capital Leases 31,499,591.89
State Water Resources Revolving Fund Loans 3,336,331
State Infrastructure Bank Loans 12,407,377
Revenue Bonds 15,060,000
Installment Sale Agreement 6,783,083
Lease Purchase Financing 1,341,245
70,427,628
LESS DEDUCTIONS ALLOWED BY LAW:
Revenue Bonds Secured by Capital Leases 31,499,592
State Loans 15,743,708
Water Revenue Bonds 15,060,000
62,303,300
TOTAL DEBT APPLICABLE TO COMPUTED LIMIT $8,124,328
LEGAL DEBT MARGIN $299,494,172
NOTE:
The California Government Code provides for a legal debt limit of 15% of gross assessed valuation based on
25% of market value. Since this limit was set, the State Constitution has changed, requiring assessed value to
be set at 100% of market value. Adjusting for this change results in a comparable legal debt limit of 3.75% of
assessed value. The City's debt management policy, however, sets a lower direct debt limit of 2% of assessed
valuation which is $164,063,187. As noted above, the City has used $8,124,328 of this debt limit.
I-7 Pg. 215
SECTION J: FINANCIAL AND STATISTICAL TABLES
This section provides summaries that integrate the other Financial Plan sections and provides
supplemental financial and statistical information. The following are included.
About
The City
Gann
Limit
J-1 Pg. 216
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The City of San Luis Obispo serves as the commercial, governmental, and cultural hub of San Luis Obispo County. One
of California’s oldest communities, it began with the founding of Mission San Luis Obispo de Tolosa in 1772 by Father
Junípero Serra as the fifth mission in the California chain of 21 missions. The mission was named after Saint Louis, a
13th century Bishop of Toulouse, France. The City was first incorporated in 1856 as a General Law City, and became a
Charter City in 1876.
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With a population of 47,339, the City is located eight miles from the Pacific Ocean and
is midway between San Francisco and Los Angeles at the junction of Highway 101 and
scenic Highway 1.
San Luis Obispo is the County Seat, and a number of federal and state regional offices
and facilities are located here, including Cal Poly State University, Cuesta Community
College, Regional Water Quality Board and Caltrans District offices.
The City’s ideal weather and natural beauty provide numerous opportunities for outdoor
recreation at nearby City and State parks, lakes, beaches and wilderness areas.
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While San Luis Obispo grew relatively slowly during most of the 19th century, the
coming of Southern Pacific Railroad in 1894 opened up the area to the rest of California. The City’s distance from major
metropolitan areas to the north (San Francisco Bay Area) and south (Los Angeles) have allowed it to retain its historic
and scenic qualities, which contribute to the superb quality of life residents enjoy, and attract visitors from many other
areas. In fact, in 2010, the City was dubbed the “Happiest City in North America” by National Geographic Author Dan
Buettner.
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Another key feature contributing to the City’s great quality of life is its delightful downtown. The heart of downtown is
Mission Plaza. With its wonderful creek side setting and beautifully restored mission (that continues to serve as a parish
church to this day), Mission Plaza is the community’s cultural and social center.
This historic plaza is complemented by a bustling downtown offering great shopping, outdoor and indoor dining, night
life, and its famous Thursday Night Farmers’ Market, where you can buy locally grown fresh produce and enjoy an
outdoor BBQ.
This unique blend of history, culture, commerce and entertainment make San Luis Obispo’s downtown one of the most
attractive, interesting and economically vibrant downtowns in America.
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The City operates under the Council-Mayor-City Manager form of government. Council members are elected at-large
and serve overlapping, four-year terms. The Mayor is also elected at-large but for a two-year term, and serves as an equal
member of the Council. The Council appoints the City Manager and City Attorney. All other department heads are
appointed by the City Manager.
San Luis Obispo is a full-service city that provides police, fire, water, sewer, streets, transit, parking, planning, building,
engineering, and parks & recreation services to the community.
:
:
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$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsAppropriations Limit
Appropriations Limit Appropriations Subject to Limit
Fiscal Year Limit Base Cost-of-Living Population Appropriations
Factor Factor Limit
Appropriations
Subject to Limit Variance
BUDGET REFERENCE MATERIALS
APPROPRIATIONS LIMIT HISTORY
The Gann Spending Limit Initiative, a State
constitutional amendment adopted by the
voters on June 6, 1979, restricts appropriations
from tax revenues by State and local governments.
Under its provisions, no local agency can
appropriate proceeds of taxes in excess of its
"appropriations limit." Excess funds may be
carried over into the next year. However, any
excess funds remaining after the second year
must be returned to taxpayers by reducing tax
rates or fees; a majority of the voters may
approve an override to increase the limit.
The following summarizes changes in the City's
appropriations limit and appropriations subject
to the limit since the effective date of the initiative.
While there are exceptions, in general, the City's
appropriations limit increases annually by
compound changes in cost-of-living and
population. This summary also reflects changes
made by Proposition 111 (adopted in June 1990)
in determining the appropriations limit as well as
the appropriations subject to it.
Post-Proposition 111
1987-88 14,836,300 3.47% 2.93% 15,800,900 14,411,700 1,389,200
1988-89 15,800,900 4.66% 4.10% 17,215,200 15,223,500 1,991,700
1989-90 17,215,200 5.19% 3.92% 18,818,600 16,691,800 2,126,800
1990-91 18,818,600 4.21% 4.59% 20,511,000 15,005,400 5,505,600
1991-92 20,511,000 4.14% 3.04% 22,009,500 14,911,100 7,098,400
1992-93 22,009,500 -0.64% 1.00% 22,087,300 18,094,900 3,992,400
1993-94 22,087,300 2.72%1.86% 23,110,100 15,215,000 7,895,100
1994-95 23,110,100 0.71%1.40% 23,600,000 16,778,400 6,821,600
1995-96 23,600,000 4.72%1.60% 25,109,300 15,530,800 9,578,500
1996-97 25,109,300 4.67%2.31% 26,889,000 16,825,500 10,063,500
1997-98 26,889,000 4.67%2.06% 28,724,500 17,513,200 11,211,300
1998-99 28,724,500 4.15%2.70% 29,671,300 17,291,800 12,379,500
1999-00 29,671,300 4.53%2.28% 31,717,100 18,030,500 13,686,600
2000-01 31,717,100 4.91%2.46% 34,093,000 18,802,000 15,291,000
2001-02 34,093,000 0.33%1.80% 34,821,200 23,227,900 11,593,300
2002-03 34,821,200 0.33%1.80% 35,565,000 23,018,400 12,546,600
2003-04 35,565,000 2.31%1.32% 36,866,700 23,072,400 13,794,300
2004-05 36,866,700 3.28%1.15% 38,513,100 27,670,400 10,842,700
2005-06 38,513,100 5.26%1.19% 41,021,300 32,371,900 8,649,400
2006-07 41,021,300 3.96%0.73% 42,957,100 30,757,100 12,200,000
2007-08 42,957,100 4.42%0.96% 45,286,400 36,582,900 8,703,500
2008-09 45,286,400 4.29%1.12% 47,758,200 36,795,300 10,962,900
2009-10 47,758,200 0.62%1.01% 48,540,600 27,159,400 21,381,200
2010-11 48,540,600 -2.54% 0.87% 47,719,200 32,058,100 15,661,100
2011-12 47,719,200 2.51%0.83% 49,323,000 34,229,700 15,093,300
2012-13 49,323,000 3.77%0.47% 51,423,500 44,178,300 7,245,200
2013-14* 51,423,500 5.12%0.52% 54,337,500 40,104,100 14,233,400
2014-15* 54,337,500 8.69%0.09% 59,112,600 36,642,900 22,469,700
2015-16* 59,112,600 4.97%0.78% 62,534,500 46,067,700 16,466,800
2016-17* 62,534,500 5.63%0.60% 66,451,500 49,397,200 17,054,300
2017-18* 66,451,500 8.20%0.92% 72,562,034 50,036,391 22,525,643
2018-19* 72,562,034 20.40% 0.35% 87,667,937 51,142,315 36,525,622
(*) The cost of living factor is based on the increase in non-residential assessed values J-6
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