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HomeMy WebLinkAboutItem 5 - ARC Goal Setting and the Financial Plan - Budget Process 2 ARCHITECTURAL REVIEW COMMISSION AGENDA REPORT SUBJECT: 2019-2021 Architectural Review Commission Goal-Setting and the Financial Plan / Budget Process. Review 2017-2019 Architectural Review Commission (ARC) goals, take public testimony, and identify Commission goals and work program items for the 2019-2021 Financial Plan. FROM: Doug Davidson, Deputy Community Development Director DISCUSSION Bi-annually the City adopts a budget and financial plan. To prepare for the budget process, all City departments and advisory bodies are asked to identify their goals and major work programs for the next two years. The City Council then uses this information, along with public comment and other input, to set community priorities and to allocate resources to accomplish the Major City Goals and Other Important Objectives. Input from City’s advisory bodies is specifically solicited, because the advisory body members are recognized as representatives of the community, that are committed to the long-term best interest of the City and its residents. Advisory body members are in tune with the “pulse” of the community in terms of their specific area of interest. Other key points as we embark on this goal- setting process are: 1. The Council is seeking advisory body input focused on the purview area of the advisory body and is also interested in input on other issues that are important to the community. 2. Advisory body input is highly valued by the Council and City staff. 3. Goals can include completing projects from a previous work program. 4. Identifying priorities implies recommending fewer rather than more goals to the Council. Advisory bodies are encouraged to only recommend activities that can reasonably be accomplished during a two-year financial plan cycle. Objective This is a public process and citizens participation is welcomed. The results of this process are twofold: 1) a list of ARC goals and implementation programs or projects; and 2) a letter from the ARC Chair to the City Council outlining recommended goals and programs, and if necessary, requesting resources for specific activities (staff will prepare the letter for the Chair’s signature). Meeting Date: October 15, 2018 Item Number: 5 Packet Page 163 2019-2021 Architectural Review Commission Goal-Setting and the Financial Plan / Budget Process Page 2 GOAL SETTING Current Recommended Goals: 2017 - 2019 The City last revised its goals and work program starting in October 2016 in connection with the preparation of the 2017-2019 Financial Plan and budget cycle. Provided below are the goals that the ARC recommended during the 2017-2019 budget cycle: 1. Alternative Transportation Incentives: Encourage expansion of the transit system by expanding routes, providing free WIFI on buses and at stops, developing a rent-a-bike program, and exploring public/private partnerships. Use in-lieu parking fees and other transportation revenue sources to implement continuous bicycle path linkages throughout the city. 2. Community Design Guidelines Update: Prepare a comprehensive update to the document including, but not limited to the following: a. Develop criteria for compatible development in historic zones. b. Update CDG for neighborhood compatibility to address transitions between neighborhood commercial development and adjacent residential neighborhoods (LUCE §3.5.7.9). c. Include more images and reference photos to highlight guideline language. d. Review existing visual resource inventory and provide recommendations for additional database improvements. Update the City’s GIS system by including 3D data for buildings by starting in the downtown and moving outward from there. Provide guidelines for use of data base in the analysis of projects as well as additional guidance for the protection of views and vistas (LUCE §15.1.2). e. Strengthen and more clearly define guidelines for storefronts and windows in commercial areas to maintain transparency and prevent the installation of opaque film and interior signs and displays that obstruct views into stores. 3. Recycled Water: Prioritize recycled water (“purple pipe”) by using it at all City Public facilities for landscaping purposes and expanding the system so private development can tie into the system. Packet Page 164 2019-2021 Architectural Review Commission Goal-Setting and the Financial Plan / Budget Process Page 3 Future Recommended Goals: 2019-2021 As the City begins the 2019-2021 financial planning and budget cycle, the ARC has the opportunity to review their current goals, update them as necessary, and identify any new goals, programs and/or projects. Goal Setting Process Staff will present a brief slide show that overviews the City’s budget process and the role of the advisory bodies in it. The Commission should then review their 2017-2019 goals, followed by discussion and consideration of recommended goals, programs, and projects to be included in the 2019-2021 Financial Plan. Typically, during goal setting sessions, the ARC has followed the steps below. Goal-setting Steps: 1. Review and understand goal-setting and City Financial Plan/Budget Process; 2. Evaluate previous goals and work programs. Determine which goals and programs were accomplished and can be deleted, or which ones are no longer needed; 3. Determine which goals and/or programs have not been completed and should be carried forward; 4. Identify new goals or programs for possible inclusion in the work program; 5. Prioritize the goals and programs, based on the Architectural Review Commission’s adopted goals and General Plan goals, community needs and input, opportunities, or special or urgent conditions; and 6. Identify activities which may require additional resources to accomplish. This may include references to possible community partnerships or outside funding sources. NEXT STEPS The Commission should take public testimony and identify Commission goals and work program items for the 2019-2021 Financial Plan. Advisory body goals are due by November 17, 2018. All advisory bodies will receive a consolidated listing of all recommended advisory body goals by November 21, 2018. This provides an opportunity to review what other advisory bodies see as high community priorities. It is also an opportunity to revise goals accordingly if the Commission so chooses. Final changes are due by December 15, 2018. The Council will receive the final report with all advisory body recommendations before they begin the community goal- setting process in January 2019. Packet Page 165 Advisory Bodies 2019-21 Financial Plan Goal Setting Parameters 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. 2 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 San Luis Obispo is committed to… Good Fiscal Management & MCG Public Engagement Quality Services 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 5 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 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. 7 Changes in Economic Conditions Diablo Closure Further CalPERS Changes Natural Disaster 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. 8 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. 9 QUESTIONS? 10