HomeMy WebLinkAboutItem B1 - Advisory Bodies Goal Setting ParametersAdvisory Bodies
2019-21 Financial Plan
Goal Setting Parameters
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Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
Page 1
Purpose of the Fiscal Health
Response Plan
Affecting all City Funds –the purpose of the
Plan is to establish a framework to respond to
the long-term fiscal impacts of the significant
increases in required pension contributions to
the CalPERS retirement system over three years.
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Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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What is the Problem?
Similar to 3,000 other agencies
in California, the City faces a
significant increase in
required pension
contributions.
The City’s annual costs to
CalPERS will more than double
in 10 years.
To address these increases, the
City needs to reduce
expenditures by $8.9 million in
the General Fund & Enterprise
Funds over the next three years.$7.8 million$19 million2014–15
ANNUAL
CALPERS COST
2024–25
PROJECTED
CALPERS COST
Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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San Luis Obispo is committed
to…
Good Fiscal Management & MCG
Public Engagement Quality Services
Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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Key Policies and Guiding Principles
Existing City policies provide
foundation.
Specific Policies supporting the plan
include:
2001 Fiscal Health Contingency
2014 Financial Responsibility
Philosophy
Compensation Philosophy
2017 Long-Term Liabilities
Ongoing Fiscal Health monitoring will
occur.
Budget changes proposed minimize service level impacts.
Budget reductions proposed are implementable in three years.
Sustainability principles incorporated
into solutions.
Capital improvement project investment
will not be diminished.
The City’s organizational values
considered so it can continue to support
and implement these values.
Maintenance of facilities, infrastructure
and equipment will continue.
Application of unassigned fund balance to pay down debt will continue.
Ongoing increases in revenue will be evaluated.
City will work with the League and others
to address long term changes to CalPERS
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Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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A Balanced Approach to Key
Components of the Plan 6
30 -40%
20 -30%
30 -40%
General Fund
New Revenues
-Cannabis
-Homestays
New Ways of Doing Business
Operating Reductions
-Debt Re-Fi
-Energy Efficiencies
-Dept Re-structuring
Employee Concessions
Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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External Impacts to the Plan
Plan based on fiscal forecast assumptions with multiple
inputs and multiple economic resources. However, it is
an estimate and there could be external forces which
impact it in the future.
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Changes in Economic Conditions
Diablo Closure
Further CalPERS Changes
Natural Disaster
Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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Implementation of the Plan
The Plan will guide the Financial Plan
process for the development of the City’s
Major City Goals and Financial Plan for
2019-21.
Departments will plan further operating
reductions to achieve the $8.9M total
savings/new revenue over the three year
FHRP period.
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Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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Goal Setting Parameters
1.Consider increased pressure to infrastructure
2. Advancing Fiscal Health Response Plan
objectives
3. Maintaining Critical Services
4. New projects and services will require trade-offs.
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Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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QUESTIONS?
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Administrative Review Board 9/11/2018 Meeting
Item B1 - Advisory Bodies Goal Setting Parameters
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