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HomeMy WebLinkAbout2018-19 Mid-Year Budget Review for 2017-19 Financial Plan San Luis Obispo, California 2018-19 Mid-Year Budget Review For the 2017-19 Financial Plan 2017-19 Financial Plan MID-YEAR BUDGET REVIEW: 2018-19 February 2019 HEIDI HARMON, MAYOR ANDY PEASE, VICE MAYOR CARLYN CHRISTIANSON, COUNCIL MEMBER AARON GOMEZ, COUNCIL MEMBER ERICA A. STEWART, COUNCIL MEMBER DEREK JOHNSON, CITY MANAGER Prepared by the Department of Finance Brigitte Elke, Director of Finance Alex Ferreira, Budget Manager Serenity Whorley, Administrative Assistant TABLE OF CONTENTS A. Transmittal Memorandum Overview A-1 Summary of Significant Findings A-2 General Fund Balance A-4 Conclusion A-7 B. Financial Condition Summaries Forecast B-1 Revenue by Major Category B-2 Changes in Financial Position B-9 Significant Operating Program Change B-39 Interfund Transfers B-42 C. Status of Goals and Objectives D. Recent Financial and Revenue Reports Sales Tax Newsletter: Second Calendar Quarter 2018 D-1 Monthly TOT Report: November 2018 D-3 Overview C-1 Housing C-6 Multimodal Transportation C-9 Climate Action C-12 Fiscal Sustainability & Responsibility C-14 Downtown Vitality C-19 Section A TRANSMITTAL MEMORANDUM February 5, 2019 TO: Mayor and City Council FROM: Derek Johnson, City Manager Prepared by: Brigitte Elke, Finance Director SUBJECT: 2018-19 Mid-Year Budget Review OVERVIEW The City’s Budget and Fiscal Policies call for a formal financial status report to the Council six months after the beginning of each fiscal year. The Mid-Year Budget Review fulfills this requirement and allows the Council to take a broader look at the City’s financial picture at the mid-point of the fiscal year. The report provides: 1. An update to the beginning fund balance projections based on actual audited results from the 2017-18 fiscal year. 2. An analysis of revenue and expenditure trends since adoption of the Financial Plan Supplement, and revision to revenue and expenditures resulting in current fund balance projections. 3. An update on the status of the Major City Goals, and Other Important Objective. 4. Identification of any budget adjustments that require Council action including one significant operating program change request from the Police department. This mid-year financial review and analysis indicates that the City remains financially sound; reaching all its reserve balance requirements and ending with a positive fund balance in fiscal years 2017-18 and 2018-19. Mid-Year Highlights: Sales Tax. Projections for 2018-19 have been increased due to updated projection from the City’s sales tax advisor. However, the revenue has been conservatively adjusted by $179,000 due to the uncertainty surrounding the current federal government shut-down and its effects on consumer confidence. Property tax estimates received from the County of San Luis Obispo show an increase from the budget supplement by $447,000 based on an update received in January 2019. Transient Occupancy Tax estimates show an increase from the budget supplement by $207,000 based on actual revenues received through November 2018. Development Review fees have been revised downward from original budget by $200,000 due to the change in fee and collection methodology applicable with the current fiscal year. Mutual Aid. Based on actual revenue received and aid responses through December 2018, a total of $485,000 has been included in the 2018-19 revenue assumptions. Police and Parks & Recreation have revised revenue estimates downward by $11,000 and $66,000 respectively. For Parks & Recreation, the fee collection was too optimistic based on the new fee schedule and the first six months of the fiscal year indicate that the current budgeted revenue will not be achieved. Netted out, General Fund revenue sources are estimated to end the fiscal year $1,168,000 above original estimates, including an estimated $100,000 in cannabis revenue. A-1 Expenditures. There are no significant expenditure variances impacting projected fund balances based on data through the end of December 2018. The first-year reductions from the City’s fiscal health response plan were included in the adopted Financial Plan supplement and all operations are maintaining with allocated resources. General Fund Balance per June 30, 2018 Based on the City’s audit and comprehensive annual financial report, the General Fund ended fiscal year 2017-18 with a fund balance, including Local Revenue Measure sub-fund, of $29.6 million; a $3 million increase from the previous year. Per the City’s Long-Term Financial Planning policy, the undesignated fund balance can only be used to fund “one- time,” non-recurring expenditures. The City Council has already given direction to aggressively pay down the unfunded liability principal and $4.2 million were earmarked for that purpose. The City’s budget policy allows the City Manager to carry-over unused operating expenditures from the first to the second year of the financial plan. Per this policy, the City Manager granted a carry-over of $4.1 million for specific purposes in most of the City’s operations. The carry-over included $350,000 dedicated the urban forest and funding for public safety equipment, homeless camp abatement, and Parks & Recreation master plan services and other programs and projects that were not completed in the 2017-2018 fiscal year and were either council priorities or were related to core services needed to serve the community. Considering the funding already earmarked, $1.4 million remain available for any effort that requires one-time funding. Staff recommends that this amount be set aside for a 115 Pension Trust Fund once it is established. The trust fund will provide funding dedicated to pension and other post-employment benefits and safeguard the City from further changes to its pension obligations. All Funds Reviewed Revenue and expenditure trends for all funds have been reviewed and budget adjustments are proposed in this document based on revised projections. General Fund Summary of Significant Findings Fund Balance 29,576,440$ Restricted (159,724)$ Committed (8,693,113)$ Assigned to 20% Operating Reserve (10,171,464)$ Development Services (596,796)$ City Attorney (100,000)$ 1st year carryover (4,183,000)$ CalPERS downpayment (4,200,000)$ Remaining One-Time Funding 1,472,343$ General Fund - Fund Balance per June 30, 2018 A-2 After reviewing the City’s audited financial results from 2017-18 and analyzing the current fiscal year-to-date revenue and expenditure trends, staff applied their professional judgment to project revenue and expenditure for the rest of the fiscal year. The following highlights the major changes to revenues and expenditures that are recommended compared to the adopted 2018-19 budget supplement: 1. Revenue: General Fund and Local Revenue Measure Fund revenues received through December 2018 were compared to the adopted budget and analyzed with forecasted growth factors to project the annual revenues by fiscal year-end. 2018-19 revenues are forecasted to increase by a total of $1,168,000 from the originally adopted budget. This projected increase is based on current Sales Tax and Property Tax trends, and year-to-date Mutual Aid Reimbursement. The revised projections for major revenues shown in this document are in line with the analysis provided by the City’s Sales Tax advisor, the San Luis Obispo County Assessor for Property Tax receipts, and year-to-date receivables from Transient Occupancy Tax. The projected increases will be partially offset by a decrease in Development Review fees and Police and Parks & Recreation service fees. 2. Expenditures: The 2018-19 budget supplement included the reductions required by the City’s fiscal health response plan. All programs are maintaining within allocated resources. 3. Development Services: By resolution on June 17, 2014 the City Council revised fiscal policies to provide for the City Manager to allocate up to 75% of Development Services revenues to acquire temporary resources for the timely processing of development applications and other permit processing activities. The policy calls for the allocated revenues to be reported to the City Council on a semi-annual basis as part of the mid-year and annual budget presentations. Below is a table showing the rolling balance of fund designation for development services over the past year: Fiscal Year Balance 2016-17 Ending Balance $41,110 2017-18 Ending Adjustment $382,396 Subtotal $423,506 2017-18 Designation $276,167 Reclassification to (102,877) Ending Balance $596,796 A-3 FINANCIAL CONDITION SUMMARY 2017-18 General Fund Balance The City’s budget policies require all funds to maintain a fund reserve of 20% of operating expenditures. Based on the City’s 2017-18 audited financials, this amounts to $10.8 million for the General Fund 2017-18 Local Revenue Measure In 2014, voters approved the extension of the one-half cent local sales tax, known as Measure G, which included a provision to create a Citizen’s Revenue Enhancement Oversight Commission (REOC) to make recommendations to the Council for the use of the local revenue measure income. The REOC meets regularly to determine the level of support that will be given to various City programs and capital projects. These allocations are primarily based on the cost of certain positions within the program performing basic functions that are identified as Measure G priorities. At fiscal year-end 2017-18, revenues totaled $7.5 million, expenditures totaled $7.3 million, including capital improvement projects of $4.7 million. The following illustrates the distribution of the Local Measure expenditures by program. 8%5% 7% 19% 41% 4%8% 7% 1%1. Open Space Preservation 2. Bicycles and Pedestrian Improvements 3. Traffic Congestion Relief/Safety Improvements 4. Public Safety FY 2017-18 Local Revenue Measure Operating and Capital Uses ($7.3M) A-4 General Fund Revenues Included in Section B of this report is a summary of major revenues sources by fund that provides actual results for 2017-18, and budgeted amounts for 2018-19 along with revised projections and respective variances for each source. Based on this Mid-Year Review, the following are anticipated changes over previously projected figures in the 2018- 19 Supplement: 1. General Sales Tax. Based on the latest forecast provided by HdL, the City’s sales tax advisor, general sales tax receipts will reflect an increase of $179,000 compared to the supplemental budget. This is primarily due to increased consumer confidence leading to an increase in local sales. 2. Local Sales Tax. Based on current trends, Measure G revenue is in line with original budget. No adjustments have been made for 2018-19. 3. Property Tax. Based on revised estimates from the County’s Assessor, the General Fund’s Property Tax revenues were adjusted to reflect an increase of $447,000 based on revised estimated revenues and assessment values. It considers the potential of PG&E paying its second installment late due to the Chapter 11 proceedings. 4. Transient Occupancy Tax. Based on actual revenue collected through November 2018, revenue reflects an increase of $207,000 for 2018-19. 5. Mutual Aid Reimbursement. The adjustment to Mutual Aid revenue is based on actual receivables through December 2018. Since Mutual Aid reimbursements occur when the City’s fire fighters offer assistance to fight large scale fires in the state, this revenue is not budgeted. 6. Police Services. The decrease of $11,000 to the supplemental budget is based on recent trends within collision investigations and parking citations. 7. Development Review Fees. The mid-year revised projection reflects adjustments to account for the fees already received and those anticipated to be received during the current year from proposed development activity. Based on the amounts received and staff’s estimate for the rest of the year, development fee revenue is forecast to decrease by $200,000 from the original forecast. This is due to the change in fee and collection methodology and not due to a slowing of development activities. 8. Other Revenue. Included in the mid-year is an adjustment to the supplemental budget for $100,000 in Cannabis revenue since applications went live on January 7, 2019, and it is expected that the first businesses will open in May 2019. 2018-19 General Fund Operating Program Expenditures Section B includes an overview of changes to the operating program budgets. Organized by fund, these schedules include the original budget, re-appropriations for encumbrances and carryover, and budget changes to-date since approval of the 2018-19 Financial Plan Supplement. Below is a description of items affecting the General Fund. General Fund – The Police department is requesting to change the crime analyst position from a supplemental temporary to a regular full-time position. The function increases department effectiveness in community policing. Converting the supplemental to a regular full-time position would result in additional ongoing cost of $49,802 per fiscal year, beginning in 2019-2020. The 2018-19 expenditure will be absorbed in the current operating budget. Local Revenue Measure Expenditures - There are no revisions to the original budget. A-5 Other Funds Significant Changes 1. General Purpose CIP Fund – An increase in grant revenue of $695,277 is included in the mid-year due to the timing of grants approved after the supplemental budget was approved. 2. Fleet Replacement Fund – A decrease of $50,000 is reflected in the mid-year due to a double budget entry included as part of the supplemental budget. 3. Information Technology Fund – An increase of $50,000 in IT surcharge fees is included in the mid-year based on year-to-date development activity paying the surcharge. This revenue was not budgeted in the supplemental budget. 4. Water Fund – Development review fees were decreased by $175,000 based on development activity to date. 5. Sewer Fund - Development review fees were decreased by $75,000 based on development activity to date. 6. Parking Fund – A decrease in services charges of $368,400 is outlined in the mid-year due to complications with parking structure kiosk conversion postponing the 24/7 enforcement. Capital Improvement Program Expenditures No changes to the Capital Improvement Program are reflected in the mid-year. Projected Fund Balances/Working Capital Based on the revised estimates for revenue projections and expenditures, this part of Section B includes a summary of projected changes in financial position for each of the City's funds. The changes in financial position schedules include the actual fund balances/working capital along with the original budget and revised budget projections for 2018-19 and reflect budget changes that have already been approved since the beginning of the fiscal year. The cost and estimated revenues (if any apply) that are associated with the following Mid-Year supplemental funding requests are also reflected in the ending fund balance. Inter-Fund Transactions This portion of Section B reflects actual inter-fund transfers for 2018-19 along with the original budget and revisions for 2018-19. A-6 Summary – Changes in Financial Position CONCLUSION The 2018-19 mid-year review indicates that the City continued to experience economic growth for the past six months. Sales tax revenue is the largest and most volatile source of revenue for the General Fund since it is closely correlated with economic fluctuations and amounts to 35% of total General Fund revenues. Staff continues to closely monitor the sales tax trend, but at mid-year it showed a modest increase over budget projections. Due to prudent expenditure management and more favorable than expected revenue trends in 2017-18, the City has one-time funds in the amount of $1.4 million available for allocation after the assignment of $4.2 million for additional principal payments to Cal PERS and $4.2 million for 2017-18 budget carryover. The Budget Review Team and Department Heads will be prepared to respond to any questions the Council may have regarding this report at the February 5, 2019, meeting. If you have any questions in the interim, or require additional information, please do not hesitate to contact the Finance Director, Brigitte Elke, at 805-781-7125. Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change GOVERNMENTAL FUNDS General Fund 76,665,901 62,563,296 63,730,984 1,167,688 Local Revenue Measure Fund 7,564,629 7,673,084 7,673,084 - Special Revenue Funds 3,037,074 2,775,467 2,817,275 41,809 Capital Project Funds 3,409,551 14,172,800 14,883,607 710,807 Total Governmental Funds 90,677,155 87,184,646 89,104,950 1,920,304 ENTERPRISE FUNDS & AGENCY FUNDS Water Fund 22,561,282 21,606,073 21,431,073 (175,000) Sewer Fund 17,050,536 16,564,516 16,489,516 (75,000) Whale Rock Reservoir Fund 1,581,630 1,535,691 1,535,691 - Parking Fund 5,408,498 6,017,400 5,649,000 (368,400) Transit Fund 3,812,081 4,208,249 4,208,249 - Boysen Ranch Convervation Fund 5,009 2,000 2,000 - Total Enterprise Funds 50,419,035 49,933,929 49,315,529 (618,400) TOTAL $141,096,190 137,118,575 138,420,479 1,301,904 A-7 Section B FINANCIAL CONDITION SUMMARIES General Fund Ten Year Forecast A FY'18 B FY'19 F FY'20 F FY'21 F FY'22 F FY'23 F FY'24 Sales & Use Tax General 17,055 17,396 17,744 18,099 18,280 18,463 18,647 Public Safety (Prop 172)397 403 385 369 353 338 324 Measure G 7,565 7,673 7,827 7,983 8,063 8,144 8,225 Property Taxes 11,426 11,997 12,237 12,482 12,732 12,986 13,246 Property Tax In Lieu Of Vlf 4,637 4,961 5,209 5,470 5,743 5,858 5,975 Transient Occupancy Tax 7,499 7,574 7,650 7,726 7,804 7,882 7,960 Utility Users Tax 5,627 5,617 5,673 5,730 5,787 5,845 5,904 Franchise Fees 1,598 1,527 1,563 1,600 1,639 1,678 1,718 Business Tax Certificates 2,664 2,884 2,971 3,060 3,152 3,246 3,344 Real Property Transfer Tax 348 388 408 428 450 472 496 Cannabis 100 1,300 2,800 2,800 2,800 2,800 Total Tax & Franchise Revenues 58,815 60,521 62,967 65,747 66,801 67,711 68,638 Fines & Forfeitures 180 148 149 151 152 154 155 Investment and Property Revenues 225 265 265 265 265 265 265 Subventions & Grants 1,992 898 898 898 898 898 898 Police Services 630 595 613 632 652 672 693 Fire Services 1,051 990 1,010 1,030 1,050 1,072 1,093 Development Review 6,429 5,670 5,969 6,088 6,210 6,210 6,210 Parks & Recreation 1,708 1,769 1,805 1,841 1,877 1,915 1,953 General Government 411 431 440 450 460 471 481 Proceeds from Debt Financing 12,473 - Other Revenues 316 118 118 268 268 268 268 Subtotal Non-Tax Revenues 25,415 10,883 11,267 11,623 11,833 11,924 12,017 Total Revenues 84,231 71,404 74,234 77,370 78,635 79,635 80,655 Salaries 29,018 32,031 33,018 34,044 34,985 36,035 36,756 Overtime 4,416 1,961 2,000 2,040 2,081 2,122 2,165 Subtotal Salaries 33,434 33,992 35,018 36,084 37,066 38,157 38,920 7040: Retirement Contributions 3,788 4,170 5,094 5,593 5,747 5,920 6,038 7049: PERS Unfunded Liability 6,855 7,892 10,416 10,728 11,050 11,381 11,723 Other Benefits 2,398 3,458 3,528 3,598 3,670 3,744 3,818 Benefits 13,041 15,521 19,037 19,919 20,467 21,045 21,579 Other (318) - (240) (240) (240) (240) (240) Staffing 46,157 49,513 53,815 55,763 57,293 58,962 60,260 Contract Services 6,940 5,890 6,055 6,223 6,397 6,576 6,759 Other Operating Expenses 9,190 10,243 10,284 10,571 10,866 11,169 11,481 LRM OpExpenses 2,482 2,612 2,348 2,395 2,419 2,443 2,467 All other 90 43 45 46 47 48 50 Cost Allocation (4,265) (4,118) (4,200) (4,284) (4,370) (4,457) (4,546) Other Financing Use 14,558 Subtotal: Expenditures 75,154 64,184 68,346 70,715 72,653 74,741 76,471 Est. Annual Salaries & Benefits Savings (1,300) (1,413) (1,464) (1,504) (1,548) (1,582) Transfers In (7,590) (4,474) (4,474) (4,474) (4,474) (4,474) (4,474) Transfers Out 1,540 - - - - - Debt Service 3,736 2,921 2,795 2,391 2,391 2,391 2,391 Transfer to CDBG 154 154 - - - - - Transfer to Insurance Benefit Fund 750 - - - - - - CIP - Fleet Replacement (LRM)779 773 578 589 595 601 607 CIP - Infrastructure Investment Fund - 250 250 250 250 250 CIP - IT Replacement (GF + LRM)640 1,136 474 484 489 494 499 CIP - Major Facility Replacement (GF+LRM)679 550 503 513 518 523 529 CIP - All Other 506 257 375 382 1,386 1,390 1,394 CIP - Measure G (LRM)4,787 3,290 3,549 3,620 3,656 3,692 3,729 Subtotal: Operating Transfers 5,980 3,556 2,637 2,291 3,056 3,319 3,342 True-up with CAFR Total Expenditures 81,134 67,739 70,983 73,006 75,710 78,060 79,813 Resources Over/(Under) Expenses 3,097 3,665 3,251 4,364 2,925 1,575 842 Fund Balance, Beginning of Year 26,496 19,721 16,898 15,148 16,513 16,438 16,013 CAFR Adjustments Prior Year Restatement (17) Capital Reserve Fund Revenue Stabalization Reserve (Recommendation)(1,000) CIP Reserve (Index to CCI)(1,000) Bollard CIP Project (one time monies)(1,288) Additional CalPERS Principal Payment (4,200) (4,000) (3,000) (3,000) (2,000) (2,000) Ending Fund Balance 29,575 16,898 15,148 16,513 16,438 16,013 14,854 Designated Reserves - true up with CAFR Policy Reserve Level @ 20%:(10,171) (12,837) (13,669) (14,143) (14,531) (14,948) (15,294) Restricted (9,550) Undesignated Reserve 9,854 4,061 1,479 2,370 1,907 1,064 (440) SUMMARY BY FUND Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change GOVERNMENTAL FUNDS General Fund 76,665,901 62,563,296 63,730,984 1,167,688 Local Revenue Measure Fund 7,564,629 7,673,084 7,673,084 - Special Revenue Funds 3,037,074 2,775,467 2,817,275 41,809 Capital Project Funds 3,409,551 14,172,800 14,883,607 710,807 Total Governmental Funds 90,677,155 87,184,646 89,104,950 1,920,304 ENTERPRISE FUNDS & AGENCY FUNDS Water Fund 22,561,282 21,606,073 21,431,073 (175,000) Sewer Fund 17,050,536 16,564,516 16,489,516 (75,000) Whale Rock Reservoir Fund 1,581,630 1,535,691 1,535,691 - Parking Fund 5,408,498 6,017,400 5,649,000 (368,400) Transit Fund 3,812,081 4,208,249 4,208,249 - Boysen Ranch Convervation Fund 5,009 2,000 2,000 - Total Enterprise Funds 50,419,035 49,933,929 49,315,529 (618,400) TOTAL $141,096,190 137,118,575 138,420,479 1,301,904 B-2 SUMMARY BY FUND Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change GENERAL FUND Tax & Franchise Revenues Sales & use tax General 17,055,085 17,217,036 17,396,187 179,151 Public safety (Proposition 172)397,488 402,572 402,572 - Property tax 11,425,509 11,665,385 11,997,274 331,889 Property tax in lieu of VLF 4,637,253 4,846,013 4,961,080 115,067 Transient occupancy tax 7,499,051 7,367,000 7,574,042 207,042 Utility users tax 5,627,356 5,617,000 5,617,000 - Franchise fees 1,597,655 1,526,717 1,526,717 - Business tax certificates 2,663,686 2,884,241 2,884,241 - Real property transfer tax 347,765 388,495 388,495 - Total Tax & Franchise Revenues 51,250,848 51,914,459 52,747,608 833,149 Fines & Forfeitures Vehicle code fines 176,473 112,800 112,800 - Other fines & forfeitures 4,000 34,800 34,800 - Total Fines & Forfeitures 180,472 147,600 147,600 - Investment and Property Revenues Investment earnings 21,729 113,082 113,082 - Rents & concessions 203,571 151,716 151,716 - Total Investment & Property 225,299 264,798 264,798 - Subventions & Grants Motor vehicle in-lieu 24,595 - - - Homeowners & other in-lieu taxes 74,972 69,560 69,560 - Other in-lieu taxes - 22,000 - (22,000) SB 90 reimbursements 15,663 - 21,430 21,430 Police training (POST)30,615 10,000 10,000 - Mutual aid reimbursements 1,672,663 - 485,000 485,000 COPS Grant AB3229 139,416 100,000 100,000 - Zone 9 reimbursements 21,703 85,000 113,000 28,000 Other state & federal grants 12,799 99,000 99,000 - Total Subventions & Grants 1,992,426 385,560 897,990 512,430 Service Charges Police Services Accident reports 3,434 3,400 3,400 (0) Collision investigation 4,723 10,708 8,000 (2,708) Alarm permits and false alarm fees 162,009 100,000 100,000 - DUI cost recovery 29,791 21,417 21,417 1 Tow release fee 14,474 12,850 12,850 0 Tobacco permit fees 27,136 21,417 21,417 1 Administrative citations 108,061 110,000 110,000 - Parking citations 66,534 84,000 75,000 (9,000) Other police services 213,396 242,518 242,518 (0) Total Police Services 629,557 606,309 594,602 (11,707) B-3 SUMMARY BY FUND Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change Fire Services Cal Poly fire services 284,408 295,682 296,090 408 Medical emergency recovery 181,133 185,253 185,253 - Fire safety/haz mat permits 103,777 100,000 100,000 - Multi-dwelling unit inspections 284,169 260,000 260,000 - CUPA fees 177,442 140,000 140,000 - Other fire services 19,703 8,567 8,567 - Total Fire Services 1,050,631 989,501 989,909 408 Development Review Planning & zoning fees 631,786 550,000 550,000 - Building Permits 1,827,689 1,930,000 1,930,000 - Construction plan check & inspection 978,630 836,000 836,000 - Infrastructure plan check & inspections 1,474,151 1,430,000 1,430,000 - Encroachment permits 327,535 260,000 260,000 - Fire plan check & inspections 393,704 370,000 370,000 - Credit Card Fees (52,415) (112,637) (112,637) - Other Development Fees 848,653 607,000 407,000 (200,000) Rental Inspection Fees (925) - - - Total Development Review *6,428,809 5,870,363 5,670,363 (200,000) Parks & Recreation Adult athletic fees 112,405 137,820 120,000 (17,820) Youth athletic fees 26,125 37,945 37,945 - Skate park fees 10 2,252 - (2,252) Instruction fees 70,061 100,000 80,000 (20,000) Special event fees 108,151 104,378 111,859 7,480 Rental & use fees 151,533 181,845 181,845 - Children services 705,352 662,000 662,000 - Teens & seniors 4,427 1,000 1,000 - Aquatics 257,384 277,779 277,779 - Golf 250,433 323,970 289,970 (34,000) Other recreation revenues 22,238 6,756 6,756 - Total Parks & Recreation 1,708,118 1,835,745 1,769,154 (66,591) General Government Business license 406,204 407,218 407,218 - Sales of publications 1,333 2,677 2,677 - Other service charges 3,481 20,865 20,865 - Total General Government 411,017 430,760 430,760 - Total Service Charges 10,228,132 9,732,679 9,454,788 (277,890) Other Revenues Insurance refunds 25,256 28,200 28,200 - Other revenues 12,763,467 90,000 190,000 100,000 Total Other Revenues 12,788,723 118,200 218,200 100,000 Total General Fund 76,665,901 62,563,296 63,730,984 1,167,688 B-4 SUMMARY BY FUND Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change LOCAL REVENUE MEASURE FUND Measure G 7,504,485 7,673,084 7,673,084 - Investment & Property Revenues 60,794 - - - Other Revenues (650) - - - Total Local Revenue Measure Fund 7,564,629 7,673,084 7,673,084 - SPECIAL REVENUE FUNDS Downtown Business Improvement District Fund Service Charges 260,449 227,000 227,000 - Other Revenues - - - - Total Downtown BID Fund 260,449 227,000 227,000 - Tourism Business Improvement District Fund Investment & Property Revenues 5,088 1,400 1,400 - Service Charges 1,492,434 1,473,000 1,514,808 41,808 Other Revenue 1,600 - - - Total Tourism BID Fund 1,499,122 1,474,400 1,516,208 41,808 Community Development Block Grant Fund Investment & Property Revenues - - - - Subventions & Grants 87,019 - - - Other Revenues 1,803 - - - Total Community Development Block Grant Fund 88,822 - - - Gas Tax Fund Subventions & Grants 967,495 965,000 965,000 - Total Gas Tax Fund 967,495 965,000 965,000 - Transportation Development Act Fund Subventions & Grants 39,781 45,000 45,000 - Total Transportation Development Act Fund 39,781 45,000 45,000 - Law Enforcement Grant Fund Investment & Property Revenues - - - - Subventions & Grants 104,253 21,325 21,325 - Service Charges 355 2,142 2,142 0 Total Law Enforcement Grant Fund 104,608 23,467 23,467 0 Public Art Contributions Fund Investment & Property Revenues 6,223 2,100 2,100 - Other Revenues 70,575 38,500 38,500 - Total Public Art Contributions Fund 76,798 40,600 40,600 - Total Special Revenue Funds 3,037,074 2,775,467 2,817,275 41,809 B-5 SUMMARY BY FUND Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change CAPITAL PROJECT FUNDS General Purpose CIP Subventions & Grants State of California Traffic safety grant - - - - Safe routes to school grant - - - - SLTPP/STP grant - - - - STP/SHA - RRTC 59,873 - - - Other state grants 282,650 - 8,088 8,088 Federal Government Highway & bridge rehabilitation & replacement (HBRR)333,946 - - - Taft Roundabout - - - - Other federal grants (20,662) - - - Service Charges Zone 9 reimbursements 234,376 - 695,277 695,277 Other Revenue 52,667 13,705,000 13,705,000 - Total General Purpose CIP 942,849 13,705,000 14,408,365 703,365 Parkland Development Fund Investment & Property Revenues 28,088 3,900 3,900 - Park in-lieu fees 86,450 - - - Dwelling unit charge 15,450 - - - Other Revenues 354,240 - - - Total Parkland Development Fund 484,006 3,900 3,900 - Transportation Impact Fee Fund Investment & Property Revenues 4,771 46,000 46,000 - Subventions & Grants - - - - Impact Fees 1,230,254 250,000 250,000 - Other Revenues (767) - - - Total Transportation Impact Fee Fund 1,234,259 296,000 296,000 - Fleet Replacement Fund Investment & Property Revenues 13,771 10,000 10,000 - Sale of surplus property 44,094 80,000 80,000 - Green Vehicle Rebates 1,500 - - - Other Revenues (114) 50,000 - (50,000) Total Fleet Replacement Fund 59,251 140,000 90,000 (50,000) B-6 SUMMARY BY FUND Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change CAPITAL PROJECT FUNDS Open Space Protection Fund Investment & Property Revenues 7,442 - 7,442 7,442 Subventions & Grants - - - - Service Charges - - - - Other Revenue (56) - - - Total Open Space Protection Fund 7,386 - 7,442 7,442 Airport Area Impact Fee Fund Investment & Property Revenues 14,019 5,000 5,000 - Service Charges - - - - Other Revenue (114) - - - Total Airport Area Impact Fee Fund 13,905 5,000 5,000 - Affordable Housing Fund Investment & Property Revenues 9,056 14,000 14,000 - Subventions & Grants 75,177 - - - Service Charges 446,572 - - - Total Affordable Housing Fund 530,805 14,000 14,000 - Los Osos Valley Road Sub-Area Fee Fund Investment & Property Revenues 3,577 1,700 1,700 - Service Charges - - - - Other Revenues (78) - - - Total LOVR Sub-Area Fee Fund 3,499 1,700 1,700 - Information Technology Replacement Fund Investment & Property Revenues 37,510 5,000 5,000 - Subventions & Grants - - - - Development Review Fees 82,345 - 50,000 50,000 Other Revenues (330) - - - Total IT Replacement Fund 119,525 5,000 55,000 50,000 Major Facility Replacement Fund Investment & Property Revenues 10,176 1,300 1,300 - Service Charges - - - - Other Revenues (53) - - - Total Maror Facility Replacement Fund 10,123 1,300 1,300 - Infrastructure Investment Fund Investment & Property Revenues 3,976 900 900 - Other Revenues (32) - - - Total Infrastructure Investment Fund 3,943 900 900 - Total Capital Project Funds 3,409,551 14,172,800 14,883,607 710,807 TOTAL-GOVERNMENTAL FUNDS 90,677,155 87,184,646 89,104,950 1,920,304 B-7 SUMMARY BY FUND Supplemental Revised Actual Budget Budget Revenue FY18 FY19 FY19 Change ENTERPRISE & AGENCY FUNDS Water Fund Investment & Property Revenues 145,825 50,000 50,000 - Impact Fees 2,131,345 800,000 800,000 - Service Charges 19,927,387 20,500,073 20,500,073 - Development Review Fees 24,731 200,000 25,000 (175,000) Other Revenues 331,994 56,000 56,000 - Total Water Fund 22,561,282 21,606,073 21,431,073 (175,000) Sewer Fund Investment & Property Revenues 139,109 50,000 50,000 - Impact Fees 811,229 300,000 300,000 - Service Charges 15,965,769 16,071,000 16,071,000 - Development Review Fees 28,606 100,000 25,000 (75,000) Other Revenues 105,822 43,516 43,516 - Total Sewer Fund 17,050,536 16,564,516 16,489,516 (75,000) Whale Rock Commission Investment & Property Revenues 13,702 1,000 1,000 - Service Charges 1,551,330 1,528,691 1,528,691 - Other Revenues 16,598 6,000 6,000 - Total Whale Rock Commission Fund 1,581,630 1,535,691 1,535,691 - Parking Fund Investment & Property Revenues 98,890 55,000 55,000 - Fines & Forfeitures 620,665 617,000 617,000 - Service Charges 4,201,339 4,840,300 4,471,900 (368,400) Lease Revenue 480,222 505,000 505,000 - Other Revenues 7,382 100 100 - Total Parking Fund 5,408,498 6,017,400 5,649,000 (368,400) Transit Fund Investment & Property Revenues 7,825 5,800 5,800 - Subventions & Grants 3,099,618 3,292,000 3,292,000 - Service Charges 690,168 728,000 728,000 - Other Revenues 14,470 182,449 182,449 - Total Transit Fund 3,812,081 4,208,249 4,208,249 - Boysen Ranch Conservation Fund Investment & Property Revenues 5,050 2,000 2,000 - Other Revenue (41) - - - Total Boysen Ranch Fund 5,009 2,000 2,000 - Total Enterprise & Agency Funds 50,419,035 49,933,929 49,315,529 (618,400) TOTAL - ALL FUNDS 141,096,190 137,118,575 138,420,479 1,301,904 B-8 CHANGES IN FINANCIAL POSITION General Fund Including LRM Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues 58,755,333 59,587,543 60,420,692 833,149 1% Fines and Forfeitures 199,374 147,600 147,600 - 0% Investment and Property Revenues 270,093 264,798 264,798 - 0% From Other Governments 1,992,426 385,560 897,990 512,430 133% Service Charges 10,234,271 9,734,291 9,454,788 (279,502) -3% Other Revenues 306,334 139,770 218,200 78,430 56% Total Revenues 71,757,831 70,259,562 71,404,068 1,144,506 2% Expenditures Operating Programs Community Safety 28,529,983 31,772,623 30,736,925 (1,035,698) -3% Infrastructure & Transportation 10,712,373 11,307,026 11,386,821 79,795 1% Culture & Recreation 3,417,104 3,687,670 6,670,039 2,982,370 81% Environmental Health & Open Space 978,264 1,107,516 968,545 (138,972) -13% Community & Neighborhood Livability 8,859,440 8,802,413 6,442,884 (2,359,529) -27% Fiscal Health & Governance 12,361,724 13,235,933 18,396,213 5,160,279 39% CalPERS Discount Rate - - - - 0% Total Program Expenditures 64,858,887 69,913,182 74,601,427 4,688,245 7% Capital Improvement Projects 4,786,982 4,952,323 11,303,526 6,351,203 128% Reimbursed Expenditures (4,264,633) (3,917,663) (3,917,663) - 0% Total Expenditures 65,381,236 70,947,842 81,987,290 11,039,449 16% Other Sources (Uses) Operating Transfers In 7,590,299 3,773,902 4,474,358 700,456 19% Operating Transfers Out (23,341,846) (6,719,850) (6,040,550) 679,300 -10% Proceeds from Debt Financing 12,472,698 - - - 0% Other Sources - - - - 0% Expenditure Savings - 1,300,000 1,300,000 - 0% Total Other Sources (Uses)(3,278,849) (1,645,948) (266,192) 1,379,756 -84% Revenues and Other Sources Over (Under) Expenditures and Other Uses 3,097,746 (2,334,228) (10,849,414) (8,515,186) 365% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 26,478,694 29,586,419 29,586,419 - 0% Prior Year Restatement Fund Balance, End of Year sub-total 29,576,440 27,252,192 18,737,005 (8,515,186) -31% Fund Balance Components: Designated Reserves (9,449,733) 0% Policy Reserve Level @ 20%:(10,171,464) (12,950,306) (12,836,717) 113,590 -1% Amount Over (Under) Policy Reserve:9,955,243 14,301,885 5,900,289 (8,401,597) -59% 2018 - 19 Variance % Change B-9 CHANGES IN FINANCIAL POSITION INSURANCE ISF Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 11,781 - - - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues (111) - - - 0% Total Revenues 11,670 - - - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 1,151 1,000,000 - (1,000,000) -100% CalPERS Discount Rate - - - - 0% Total Program Expenditures 1,151 1,000,000 - (1,000,000) -100% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures 1,151 1,000,000 - (1,000,000) -100% Other Sources (Uses) Operating Transfers In 750,000 500,000 - (500,000) -100% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)750,000 500,000 - (500,000) -100% Revenues and Other Sources Over (Under) Expenditures and Other Uses 760,519 (500,000) - 500,000 -100% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 1,019,032 1,779,551 1,779,551 - 0% Prior Year Restatement Fund Balance, End of Year 1,779,551 1,279,551 1,779,551 500,000 39% 2018 - 19 Variance % Change B-10 CHANGES IN FINANCIAL POSITION DOWNTOWN BID FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues - - - - 0% From Other Governments - - - - 0% Service Charges 260,449 227,000 227,000 - 0% Other Revenues - - - - 0% Total Revenues 260,449 227,000 227,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 332,320 227,000 227,000 - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 332,320 227,000 227,000 - 0% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures 332,320 227,000 227,000 - 0% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (71,872) - - - 0% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year (5,457) (77,329) (77,329) - 0% Prior Year Restatement Fund Balance, End of Year (77,329) (77,329) (77,329) - 0% 2018 - 19 Variance % Change B-11 CHANGES IN FINANCIAL POSITION TOURISM BID FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 4,805 1,400 1,400 - 0% From Other Governments - - - - 0% Service Charges 1,492,434 1,473,000 1,514,808 41,808 3% Other Revenues 1,600 - - - 0% Total Revenues 1,498,839 1,474,400 1,516,208 41,808 3% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 1,477,108 1,356,082 1,714,406 358,324 26% CalPERS Discount Rate - - - - 0% Total Program Expenditures 1,477,108 1,356,082 1,714,406 358,324 26% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures 1,477,108 1,356,082 1,714,406 358,324 26% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (33,868) (28,679) (28,679) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(33,868) (28,679) (28,679) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (12,137) 89,639 (226,876) (316,515) -353% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 429,433 417,296 417,296 - 0% Prior Year Restatement Fund Balance, End of Year 417,296 506,935 190,419 (316,515) -62% 2018 - 19 Variance % Change B-12 CHANGES IN FINANCIAL POSITION CDBG FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues - - - - 0% From Other Governments 87,019 - - - 0% Service Charges - - - - 0% Other Revenues 1,803 - - - 0% Total Revenues 88,822 - - - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability 128,633 99,990 99,758 (232) 0% Fiscal Health & Governance - - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 128,633 99,990 99,758 (232) 0% Capital Improvement Projects 105,000 - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures 233,633 99,990 99,758 (232) 0% Other Sources (Uses) Operating Transfers In 154,000 154,000 154,000 - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)154,000 154,000 154,000 - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 9,189 54,010 54,242 232 0% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 126,586 135,775 135,775 - 0% Prior Year Restatement Fund Balance, End of Year 135,775 189,785 190,016 232 0% 2018 - 19 Variance % Change B-13 CHANGES IN FINANCIAL POSITION GAS TAX FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues - - - - 0% From Other Governments 967,495 965,000 965,000 - 0% Service Charges - - - - 0% Other Revenues - - - - 0% Total Revenues 967,495 965,000 965,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance - - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures - - - - 0% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures - - - - 0% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (967,495) (965,000) (965,000) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(967,495) (965,000) (965,000) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses - - - - 0% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year - - - - 0% Prior Year Restatement Fund Balance, End of Year - - - - 0% 2018 - 19 Variance % Change B-14 CHANGES IN FINANCIAL POSITION TDA - BIKEWAY FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues - - - - 0% From Other Governments 39,781 45,000 45,000 - 0% Service Charges - - - - 0% Other Revenues - - - - 0% Total Revenues 39,781 45,000 45,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance - - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures - - - - 0% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures - - - - 0% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (29,836) (45,000) (45,000) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(29,836) (45,000) (45,000) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 9,945 - - - 0% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year - 9,945 9,945 - 0% Prior Year Restatement Fund Balance, End of Year 9,945 9,945 9,945 - 0% 2018 - 19 Variance % Change B-15 CHANGES IN FINANCIAL POSITION LAW ENFORCE GRANT FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues - - - - 0% From Other Governments 104,253 21,325 21,325 - 0% Service Charges 355 2,142 2,142 0 0% Other Revenues - - - - 0% Total Revenues 104,608 23,467 23,467 0 0% Expenditures Operating Programs Community Safety 108,520 44,096 44,096 - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance - - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 108,520 44,096 44,096 - 0% Capital Improvement Projects - - 69,607 69,607 0% Reimbursed Expenditures - - - - 0% Total Expenditures 108,520 44,096 113,703 69,607 158% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (13,800) - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(13,800) - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (17,713) (20,629) (90,236) (69,606) 337% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 20,786 3,073 3,073 - 0% Prior Year Restatement Fund Balance, End of Year 3,073 (17,556) (87,162) (69,606) 396% 2018 - 19 Variance % Change B-16 CHANGES IN FINANCIAL POSITION PUBLIC ART PRIVATE SECTOR Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 5,832 2,100 2,100 - 0% From Other Governments - - - - 0% Service Charges 70,625 38,500 38,500 - 0% Other Revenues (50) - - - 0% Total Revenues 76,407 40,600 40,600 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 358 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 358 - - - 0% Capital Improvement Projects 25,043 126,700 236,754 110,054 87% Reimbursed Expenditures - - - - 0% Total Expenditures 25,401 126,700 236,754 110,054 87% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 51,007 (86,100) (196,154) (110,054) 128% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 468,878 519,885 519,885 - 0% Prior Year Restatement Fund Balance, End of Year 519,885 433,785 323,731 (110,054) -25% 2018 - 19 Variance % Change B-17 CHANGES IN FINANCIAL POSITION CAPITAL OUTLAY FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues - - - - 0% From Other Governments 890,182 - 703,365 703,365 0% Service Charges - - - - 0% Other Revenues 52,667 13,705,000 13,705,000 - 0% Total Revenues 942,849 13,705,000 14,408,365 703,365 5% Expenditures Operating Programs Community Safety 1,604,735 - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 1,052,146 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 2,656,881 - - - 0% Capital Improvement Projects 1,712,675 15,433,477 28,700,016 13,266,539 86% Reimbursed Expenditures - - - - 0% Total Expenditures 4,369,556 15,433,477 28,700,016 13,266,539 86% Other Sources (Uses) Operating Transfers In 505,533 257,400 257,400 - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)505,533 257,400 257,400 - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (2,921,174) (1,471,077) (14,034,251) (12,563,174) 854% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 1,537,437 (1,383,737) (1,383,737) - 0% Prior Year Restatement Fund Balance, End of Year (1,383,737) (2,854,814) (15,417,988) (12,563,174) 440% 2018 - 19 Variance % Change B-18 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 26,276 3,900 3,900 - 0% From Other Governments - - - - 0% Service Charges 101,900 - - - 0% Other Revenues 354,017 - - - 0% Total Revenues 482,193 3,900 3,900 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 1,659 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 1,659 - - - 0% Capital Improvement Projects 217,193 254,000 362,954 108,954 43% Reimbursed Expenditures - - - - 0% Total Expenditures 218,852 254,000 362,954 108,954 43% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (160,000) - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(160,000) - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 103,342 (250,100) (359,054) (108,954) 44% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 2,260,005 2,363,347 2,363,347 - 0% Prior Year Restatement Fund Balance, End of Year 2,363,347 2,113,247 2,004,293 (108,954) -5% 2018 - 19 Variance % Change B-19 CHANGES IN FINANCIAL POSITION TRANSPORTATION IMPACT FEE Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues (670) 46,000 46,000 - 0% From Other Governments - - - - 0% Service Charges 1,230,254 250,000 250,000 - 0% Other Revenues (767) - - - 0% Total Revenues 1,228,817 296,000 296,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 4,981 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 4,981 - - - 0% Capital Improvement Projects 1,657,149 1,369,000 4,140,124 2,771,124 202% Reimbursed Expenditures - - - - 0% Total Expenditures 1,662,130 1,369,000 4,140,124 2,771,124 202% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (250,000) (250,000) (250,000) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(250,000) (250,000) (250,000) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (683,312) (1,323,000) (4,094,124) (2,771,124) 209% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 7,557,157 6,873,845 6,873,845 - 0% Prior Year Restatement Fund Balance, End of Year 6,873,845 5,550,845 2,779,720 (2,771,124) -50% 2018 - 19 Variance % Change B-20 CHANGES IN FINANCIAL POSITION FLEET EQUIP REPLACEMENT Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 13,003 10,000 10,000 - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues 45,480 80,000 80,000 - 0% Total Revenues 58,482 90,000 90,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 703 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 703 - - - 0% Capital Improvement Projects 500,683 699,000 1,266,939 567,939 81% Reimbursed Expenditures - - - - 0% Total Expenditures 501,386 699,000 1,266,939 567,939 81% Other Sources (Uses) Operating Transfers In 779,347 624,000 773,000 149,000 24% Operating Transfers Out (768,000) (773,000) (773,000) - 0% Proceeds from Debt Financing - 773,000 773,000 - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)11,347 624,000 773,000 149,000 24% Revenues and Other Sources Over (Under) Expenditures and Other Uses (431,556) 15,000 (403,939) (418,939) -2793% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 1,544,884 1,113,328 1,113,328 - 0% Prior Year Restatement Fund Balance, End of Year 1,113,328 1,128,328 709,389 (418,939) -37% 2018 - 19 Variance % Change B-21 CHANGES IN FINANCIAL POSITION OPEN SPACE PROTECTION Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 6,986 - 7,442 7,442 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues (56) - - - 0% Total Revenues 6,930 - 7,442 7,442 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 418 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 418 - - - 0% Capital Improvement Projects - - 323,602 323,602 0% Reimbursed Expenditures - - - - 0% Total Expenditures 418 - 323,602 323,602 0% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 6,513 - (316,160) (316,160) 0% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 588,743 595,256 595,256 - 0% Prior Year Restatement Fund Balance, End of Year 595,256 595,256 279,095 (316,160) -53% 2018 - 19 Variance % Change B-22 CHANGES IN FINANCIAL POSITION AIRPORT AREA IMPACT FEE Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 13,159 5,000 5,000 - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues (114) - - - 0% Total Revenues 13,046 5,000 5,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 787 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 787 - - - 0% Capital Improvement Projects - 750,000 850,000 100,000 13% Reimbursed Expenditures - - - - 0% Total Expenditures 787 750,000 850,000 100,000 13% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 12,259 (745,000) (845,000) (100,000) 13% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 1,108,970 1,121,229 1,121,229 - 0% Prior Year Restatement Fund Balance, End of Year 1,121,229 376,229 276,229 (100,000) -27% 2018 - 19 Variance % Change B-23 CHANGES IN FINANCIAL POSITION AFFORDABLE HOUSING FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 7,487 14,000 14,000 - 0% From Other Governments 75,177 - - - 0% Service Charges 446,847 - - - 0% Other Revenues (275) - - - 0% Total Revenues 529,236 14,000 14,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 1,436 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 1,436 - - - 0% Capital Improvement Projects 850,000 - 97,207 97,207 0% Reimbursed Expenditures - - - - 0% Total Expenditures 851,436 - 97,207 97,207 0% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out - (17,000) (17,000) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- (17,000) (17,000) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (322,200) (3,000) (100,207) (97,207) 3240% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 2,567,000 2,244,800 2,241,800 (3,000) 0% Prior Year Restatement Fund Balance, End of Year 2,244,800 2,241,800 2,141,593 (100,207) -4% 2018 - 19 Variance % Change B-24 CHANGES IN FINANCIAL POSITION LOVR IMPACT FEE FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 3,364 1,700 1,700 - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues (78) - - - 0% Total Revenues 3,286 1,700 1,700 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 195 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 195 - - - 0% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures 195 - - - 0% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 3,091 1,700 1,700 - 0% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 128,947 132,038 132,038 - 0% Prior Year Restatement Fund Balance, End of Year 132,038 133,738 133,738 - 0% 2018 - 19 Variance % Change B-25 CHANGES IN FINANCIAL POSITION INFO TECH REPLACEMENT Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 35,249 5,000 5,000 - 0% From Other Governments - - - - 0% Service Charges 82,345 - 50,000 50,000 0% Other Revenues (330) - - - 0% Total Revenues 117,264 5,000 55,000 50,000 1000% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 2,070 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 2,070 - - - 0% Capital Improvement Projects 698,355 1,294,294 3,778,459 2,484,165 192% Reimbursed Expenditures - - - - 0% Total Expenditures 700,424 1,294,294 3,778,459 2,484,165 192% Other Sources (Uses) Operating Transfers In 689,745 1,350,967 1,350,967 - 0% Operating Transfers Out (536,500) (182,023) (182,023) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)153,245 1,168,944 1,168,944 - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (429,915) (120,350) (2,554,515) (2,434,165) 2023% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 3,167,696 2,737,781 2,737,781 - 0% Prior Year Restatement Fund Balance, End of Year 2,737,781 2,617,431 183,265 (2,434,165) -93% 2018 - 19 Variance % Change B-26 CHANGES IN FINANCIAL POSITION MAJOR FACILITY REPLACEMNT Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 9,878 1,300 1,300 - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues (53) - - - 0% Total Revenues 9,825 1,300 1,300 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 273 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 273 - - - 0% Capital Improvement Projects 231,756 144,290 352,188 207,898 144% Reimbursed Expenditures - - - - 0% Total Expenditures 232,029 144,290 352,188 207,898 144% Other Sources (Uses) Operating Transfers In 685,735 593,200 593,200 - 0% Operating Transfers Out (483,900) (507,700) (507,700) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)201,835 85,500 85,500 - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (20,369) (57,490) (265,388) (207,898) 362% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 425,987 405,618 405,618 - 0% Prior Year Restatement Fund Balance, End of Year 405,618 348,128 140,230 (207,898) -60% 2018 - 19 Variance % Change B-27 CHANGES IN FINANCIAL POSITION INFRASTRCT INVST CIP FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 3,732 900 900 - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues (32) - - - 0% Total Revenues 3,700 900 900 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 223 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 223 - - - 0% Capital Improvement Projects - - 250,000 250,000 0% Reimbursed Expenditures - - - - 0% Total Expenditures 223 - 250,000 250,000 0% Other Sources (Uses) Operating Transfers In - 250,000 250,000 - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- 250,000 250,000 - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 3,477 250,900 900 (250,000) -100% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 314,493 317,970 317,970 - 0% Prior Year Restatement Fund Balance, End of Year 317,970 568,870 318,870 (250,000) -44% 2018 - 19 Variance % Change B-28 CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues (14,848) - - - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues 24,056 - - - 0% Total Revenues 9,208 - - - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 4,345,547 3,185,500 3,197,727 12,227 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 4,345,547 3,185,500 3,197,727 12,227 0% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures 4,345,547 3,185,500 3,197,727 12,227 0% Other Sources (Uses) Operating Transfers In 3,865,887 3,185,500 3,185,500 - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing 4,071 - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)3,869,958 3,185,500 3,185,500 - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (466,382) - (12,227) (12,227) 0% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 2,125,253 1,658,871 1,658,871 - 0% Prior Year Restatement Fund Balance, End of Year 1,658,871 1,658,871 1,646,644 (12,227) -1% 2018 - 19 Variance % Change B-29 CHANGES IN FINANCIAL POSITION WATER FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 127,950 50,000 50,000 - 0% From Other Governments - - - - 0% Service Charges 22,083,133 21,500,073 21,325,073 (175,000) -1% Other Revenues 332,324 56,000 56,000 - 0% Total Revenues 22,543,407 21,606,073 21,431,073 (175,000) -1% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation 10,445,647 11,297,807 11,890,010 592,203 5% Culture & Recreation - - - - 0% Environmental Health & Open Space 2,763,560 2,619,672 2,748,452 128,780 5% Community & Neighborhood Livability 508,895 498,540 486,935 (11,604) -2% Fiscal Health & Governance 3,069,700 4,715,185 4,090,753 (624,431) -13% CalPERS Discount Rate - - - - 0% Total Program Expenditures 16,787,802 19,131,204 19,216,151 84,948 0% Capital Improvement Projects 11,800,882 935,850 8,891,645 7,955,795 850% Reimbursed Expenditures - - - - 0% Total Expenditures 28,588,684 20,067,054 28,107,796 8,040,742 40% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (967,599) (1,027,176) (1,027,176) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(967,599) (1,027,176) (1,027,176) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (7,012,875) 511,843 (7,703,899) (8,215,742) -1605% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 23,489,115 16,476,240 16,476,240 - 0% Prior Year Restatement Fund Balance, End of Year 16,476,240 16,988,083 8,772,341 (8,215,742) -48% 2018 - 19 Variance % Change B-30 CHANGES IN FINANCIAL POSITION SEWER FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 114,353 50,000 50,000 - 0% From Other Governments - - - - 0% Service Charges 16,674,193 16,471,000 16,396,000 (75,000) 0% Other Revenues 107,897 43,516 43,516 - 0% Total Revenues 16,896,443 16,564,516 16,489,516 (75,000) 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation 1,064,971 1,127,562 1,242,310 114,748 10% Culture & Recreation - - - - 0% Environmental Health & Open Space 4,668,620 4,855,610 5,172,570 316,961 7% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 2,541,749 4,377,897 4,691,928 314,031 7% CalPERS Discount Rate - - - - 0% Total Program Expenditures 8,275,340 10,361,068 11,106,808 745,740 7% Capital Improvement Projects (3,929,324) 16,082,583 27,700,237 11,617,654 72% Reimbursed Expenditures - - - - 0% Total Expenditures 4,346,016 26,443,651 38,807,045 12,363,394 47% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (817,715) (901,818) (901,818) - 0% Proceeds from Debt Financing - 14,327,203 14,327,203 - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(817,715) 13,425,385 13,425,385 - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 11,732,713 3,546,250 (8,892,144) (12,438,394) -351% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 30,408,455 42,141,168 42,141,168 - 0% Prior Year Restatement Fund Balance, End of Year 42,141,168 45,687,418 33,249,024 (12,438,394) -27% 2018 - 19 Variance % Change B-31 CHANGES IN FINANCIAL POSITION WHALE ROCK FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 12,165 1,000 1,000 - 0% From Other Governments - - - - 0% Service Charges 1,551,330 1,528,691 1,528,691 - 0% Other Revenues 16,598 6,000 6,000 - 0% Total Revenues 1,580,093 1,535,691 1,535,691 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation 971,010 1,092,746 1,315,401 222,655 20% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 165,063 141,937 141,937 - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 1,136,073 1,234,683 1,457,338 222,655 18% Capital Improvement Projects (108,733) 36,000 834,117 798,117 2217% Reimbursed Expenditures - - - - 0% Total Expenditures 1,027,340 1,270,683 2,291,455 1,020,772 80% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (2,210) (15,963) (15,963) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(2,210) (15,963) (15,963) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 550,543 249,045 (771,727) (1,020,772) -410% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 423,378 973,921 973,921 - 0% Prior Year Restatement Fund Balance, End of Year 973,921 1,222,966 202,194 (1,020,772) -83% 2018 - 19 Variance % Change B-32 CHANGES IN FINANCIAL POSITION PARKING FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures 620,665 617,000 617,000 - 0% Investment and Property Revenues 87,232 55,000 55,000 - 0% From Other Governments - - - - 0% Service Charges 4,681,561 5,345,300 4,976,900 (368,400) -7% Other Revenues 7,382 100 100 - 0% Total Revenues 5,396,840 6,017,400 5,649,000 (368,400) -6% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation 2,375,981 2,593,681 3,453,213 859,532 33% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 1,779,354 1,502,900 705,236 (797,664) -53% CalPERS Discount Rate - - - - 0% Total Program Expenditures 4,155,336 4,096,581 4,158,449 61,868 2% Capital Improvement Projects 646,179 650,000 3,304,586 2,654,586 408% Reimbursed Expenditures - - - - 0% Total Expenditures 4,801,515 4,746,581 7,463,034 2,716,454 57% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (157,644) (169,865) (169,865) - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(157,644) (169,865) (169,865) - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 437,682 1,100,954 (1,983,899) (3,084,854) -280% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 24,939,066 25,376,748 25,376,748 - 0% Prior Year Restatement Fund Balance, End of Year sub-total 25,376,748 26,477,702 23,392,848 (3,084,854) -12% 2018 - 19 Variance % Change B-33 CHANGES IN FINANCIAL POSITION TRANSIT FUND Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues 7,990 - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 6,554 5,800 5,800 - 0% From Other Governments 3,099,618 3,292,000 3,292,000 - 0% Service Charges 682,178 728,000 728,000 - 0% Other Revenues 14,470 182,449 182,449 - 0% Total Revenues 3,810,810 4,208,249 4,208,249 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation 3,293,053 3,673,822 3,637,269 (36,552) -1% Culture & Recreation - - - - 0% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 321,151 319,987 319,987 - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 3,614,204 3,993,809 3,957,256 (36,552) -1% Capital Improvement Projects 736,330 173,000 659,388 486,388 281% Reimbursed Expenditures - - - - 0% Total Expenditures 4,350,534 4,166,809 4,616,644 449,836 11% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out (61,398) - (114,651) (114,651) 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)(61,398) - (114,651) (114,651) 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses (601,123) 41,440 (523,046) (564,487) -1362% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 3,761,766 3,160,643 3,160,643 - 0% Prior Year Restatement Fund Balance, End of Year 3,160,643 3,202,084 2,637,597 (564,487) -18% 2018 - 19 Variance % Change B-34 CHANGES IN FINANCIAL POSITION BOYSEN RANCH CONSERV ESMT Actual Supplement Revised FY18 Budget Budget Revenues Tax Revenues - - - - 0% Fines and Forfeitures - - - - 0% Investment and Property Revenues 4,740 2,000 2,000 - 0% From Other Governments - - - - 0% Service Charges - - - - 0% Other Revenues (41) - - - 0% Total Revenues 4,699 2,000 2,000 - 0% Expenditures Operating Programs Community Safety - - - - 0% Infrastructure & Transportation - - - - 0% Culture & Recreation 250 7,500 14,750 7,250 97% Environmental Health & Open Space - - - - 0% Community & Neighborhood Livability - - - - 0% Fiscal Health & Governance 283 - - - 0% CalPERS Discount Rate - - - - 0% Total Program Expenditures 533 7,500 14,750 7,250 97% Capital Improvement Projects - - - - 0% Reimbursed Expenditures - - - - 0% Total Expenditures 533 7,500 14,750 7,250 97% Other Sources (Uses) Operating Transfers In - - - - 0% Operating Transfers Out - - - - 0% Proceeds from Debt Financing - - - - 0% Other Sources - 0% Expenditure Savings - 0% Total Other Sources (Uses)- - - - 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 4,166 (5,500) (12,750) (7,250) 132% Transfer to Local Revenue Measure Fund Fund Balance, Beginning of Year 83,584 87,750 87,750 - 0% Prior Year Restatement Fund Balance, End of Year 87,750 82,250 75,000 (7,250) -9% 2018 - 19 Variance % Change B-35 SIGNIFICANT OPERATING PROGRAM CHANGE *DEPARTMENT NAME: POLICE *PROGRAM: ADMINISTRATION *TITLE (Short Name): CRIME ANALYST Page 1 of 4 *Indicates a required field *SUMMARY OF CHANGE The Police Department’s Crime Analyst is a temporary position; staff is requesting this position become a full- time employee. *SERVICE LEVEL IMPACT A full-time Crime Analyst position will increase department effectiveness in community policing. Increasing this current temporary position to a 1.0 FTE would result in no additional cost for FY 2018-19. It will result in an ongoing cost thereafter of $49,802. BACKGROUND & SUPPORTING EVIDENCE *Existing Situation: Factors Driving the Need for Change To maximize the efficiency and effectiveness of the Police Department’s community focused public safety mission, the Department funded a part-time crime analyst in 2016. Staff is requesting that the crime analyst position become a full time FTE as of the mid-year 2018-19 budget. Crime analysis has become an essential tool in law enforcement’s efforts to enhance public safety, identify emerging trends, allocate resources, and plan crime-prevention strategies. Currently there is not a significant pool of skilled individuals within our region who meet the qualifications needed to fill this position. We experienced that when we filled the position we currently have. There were qualified people from outside the county that applied, however could not make the salary and benefits work in order to move into the area. We hired a local candidate with limited experience and have spent the last year and a half training her and working together to make her a competitive Analyst for other agencies. Police agencies within the County have recognized the necessity of having a Crime Analyst and are adding fulltime benefited positions to their departments. The San Luis Obispo Police Department is concerned about retention of our Crime Analyst, if the position continues to remain a temporary status. We are also concerned about recruitment of a Crime Analyst given the limited salary and benefits currently offered in San Luis Obispo. Having a Crime Analyst position has allowed the Police Department to maximize the efficiency and effectiveness of staff’s community focused public safety mission. The core of analysis work is mining data, making it usable, finding correlating clues and information from a tremendous amount of seemingly unrelated data and turning it into operational intelligence. The Police Department’s transition to a smart, statistical and predictive organization model of data analysis and informed, proactive decision making has led to resources being utilized to address high-crime locations, high-rate offenders, and repeat victims. The addition of a Crime Analyst has helped the Police Department to effectively reduce crime in our community. The application of data-driven strategies, such as hotspot policing, problem-oriented policing, and intelligence-led policing have proven to work. The Police Department’s current Crime Analyst has helped the department to better understand when, where, and how to focus limited resources, as well as how to evaluate the effectiveness of our strategies. Sound public safety analysis is paramount to our success. Part of the job functions require large amounts of data to be gathered, analyzed, effectively formatted, and shared. To adequately meet this need, and to efficiently direct Police and City resources, the department requires a full-time Crime Analyst. Crime rates for Part I crimes in San Luis Obispo increased approximately 30% in two years. Since having a B-37 SIGNIFICANT OPERATING PROGRAM CHANGE *DEPARTMENT NAME: POLICE *PROGRAM: ADMINISTRATION *TITLE (Short Name): CRIME ANALYST Page 2 of 4 *Indicates a required field Crime Analyst, we reduced crime the first year by 13%, and 2% in the second year. Having a full-time Crime Analyst has helped us to identify trends as they emerge, not weeks or even months later. This position also assists with intelligence analysis regarding special event planning, including analysis of similar events in other cities. Utilizing this data allows the department to develop effective deployment strategies and tactics. Interceding as soon as possible, preventing victimization, reducing crime, and utilizing our limited resources effectively, increases community satisfaction, and reduces inefficient and unnecessary personnel time. As an example; a 10% reduction in Part I crime would result in 220 less victims, 220 less calls to dispatch, 220 less calls for officers, 220 less reports for records and so on. In part, the analyst conducts research and strategic crime analysis to identify crime patterns and trends; analyze long term crime patterns and trends using probability studies and complex statistical analyses such as random samplings, correlation, and regression analysis; develops and tests hypotheses; develops victim and suspect profiles (e.g. physical or vehicle description profiles); and forecasts future criminal activity. The analyst is responsible for the procedures and techniques related to computerized mapping and analysis; ability to collect, conceptualize, analyze, interpret and prepare police data, and to utilize this data to evaluate police deployment, responses and problem-solving efforts. The Crime Analyst position is also responsible for managing the development of partnerships between the Police Department and available community resources, as well as other police agencies to enhance the quality of life in the city through the education of individuals, businesses and community groups in various aspects of crime awareness and prevention. *Key Objectives: Making the Change Happen 1. Reduce crime by using data analysis to develop a predictive policing model. 2. Enhance the department’s community policing efforts. 3. Increase community safety. 4. Provide a method for increased work efficiency. *Goal & Policy Criteria 1. 2017-19 Financial Plan, Police Patrol Services Objective: Continue to develop and implement proactive policing strategies. 2. 2017-19 Financial Plan, Police Administration: Initiate intelligence lead policing by hiring a Crime Analyst. Major City Goal or Other Important Objective Addressed 1. Multi-Modal Transportation: Data gathering and analysis for traffic safety and enforcement. 2. Downtown Vitality: Data gathering and analysis to increase safety in the downtown (and throughout the City). 3. Fiscal Health Response Plan: The Crime Analyst’s data results in focused policing efforts and provides analyzed information to patrol to enhance policing in targeted areas. Reducing crime results in less calls to dispatch, fewer reports to process, less evidence collection, and an increase in officer proactive time. Public Safety fosters trust. A trusting and healthy community that wants to be in public spaces makes people get engaged in their communities which supports economic activity and growth. Social capital positively impacts innovation, investment and financial development and is directly correlated to crime, and the fear of crime. STAKEHOLDERS Police Department Community Residents Business Owners B-38 SIGNIFICANT OPERATING PROGRAM CHANGE *DEPARTMENT NAME: POLICE *PROGRAM: ADMINISTRATION *TITLE (Short Name): CRIME ANALYST Page 3 of 4 *Indicates a required field Visitors IMPLEMENTATION Program Manager: Jeff Smith, Police Captain Project Team: Deanna Cantrell, Police Chief; Jeff Smith, Police Captain IMPLEMENTATION PLAN Date (MM/DD/YY) Task 02/05/19 Temporary position is approved by Council to become a Full Time Employee (FTE) 02/06/19 – 03/01/19 Police Staff work with Human Resources to discuss full time position classification; review job classification and update as needed. 03/04/19 After position is finalized, Human Resources opens position EOP for one week 3/11/19 Review Applications and plan interviews 3/18/19 – 3/31/19 Candidate Interviews and Hiring *COST SUMMARY Fiscal Year Cost Center Account Expense Type (Operating or Position) Fund FTEs One-Time Ongoing Offsets Net Cost 2018-19 8001 Various Regular Salary & Benefits 101 1.0 $20,105 $20,105 $0* 2019-20 8001 Various Regular Salary & Benefits 101 1.0 $87,122 $37,320 $49,802 Sub-Total Fiscal Year Total SOPC Total *Note: There will be no net cost for FY 2018-19, the department will absorb this $20,105 using savings at year end. ALTERNATIVES B-39 SIGNIFICANT OPERATING PROGRAM CHANGE *DEPARTMENT NAME: POLICE *PROGRAM: ADMINISTRATION *TITLE (Short Name): CRIME ANALYST Page 4 of 4 *Indicates a required field The Crime Analyst position can continue to be a temporary employee without benefits. However, staff does not agree with this alternative. Overall, the department has already realized the value of having this position and by increasing hours and offering a benefits package, this will help ensure employee retention and recruitment if needed. Using data to communicate internally, and with Administration, City Council, the Community, enables the department to better illustrate and explain crime influence within our City. B-40 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Supplemental Revised 2017-18 Budget Budget Variance General Fund Operating Transfers In Insurance Benefit - - - - Downtown Business Improvement District Fund - - - - Tourism Business Improvement District Fund 33,868 28,679 28,679 - Community Development Block Grant (CDBG) Fund - - - - Gas Tax Fund 967,495 965,000 965,000 - Transportation Development Act (TDA) Fund 29,836 45,000 45,000 - Law Enforcement Grants Fund 13,800 - - - Public Art (Private Sector Contributions) Fund - - - - General Purpose CIP - - - - Parkland Development Fund 160,000 - - - Transportation Impact Fee Fund 250,000 250,000 250,000 - 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 941,337 953,426 953,426 - Sewer Fund 799,192 808,438 808,438 - Whale Rock Commission - - - - Parking Fund 151,011 151,011 151,011 - Transit Fund 58,081 - 58,081 (58,081) Boysen Ranch Conservation Fund - - - - General Agency Fund - - - - Total Operating Transfers In 3,404,620 3,218,554 3,276,635 (58,081) Operating Transfers Out Insurance Benefit (750,000) (500,000) - (500,000) Downtown Business Improvement District Fund - - - - Tourism Business Improvement District Fund - - - - Community Development Block Grant (CDBG) Fund (154,000) (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 (505,533) (257,400) (257,400) - Parkland Development Fund - - - - 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 (103,500) (953,627) (953,627) - Major Facility Replacement (194,635) (42,300) (42,300) - Fleet Replacement Fund (11,347) - - - Infrastructure Investment Fund - (250,000) (250,000) - Debt Service Fund (3,735,887) (2,920,500) (2,920,500) - Water Fund - - - - Sewer Fund - - - - Whale Rock Commission - - - - Parking Fund - - - - Transit Fund - - - - Boysen Ranch Conservation Fund - - - - Total Operating Transfers Out (5,454,903) (5,077,827) (4,577,827) (500,000) Net Operating Transfers (2,050,282) (1,859,273) (1,301,192) (558,081) Local Revenue Measure Sub-Fund Operating Transfers In Major Facility Replacement 483,900 507,700 507,700 - Information Technology 536,500 182,023 182,023 - 2018-19 B-41 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Supplemental Revised 2017-18 Budget Budget Variance 2018-19 Fleet Replacement 638,000 508,000 508,000 - Total Transfers In 1,658,400 1,197,723 1,197,723 - Operating Transfers Out Major Facility Replacement (483,900) (507,700) (507,700) - Information Technology (536,500) (182,023) (182,023) - Fleet Replacement (768,000) (773,000) (773,000) - Total Transfers Out (1,788,400) (1,462,723) (1,462,723) - Net Operating Transfers (130,000) (265,000) (265,000) - Insurance Benefit Operating Transfers In General Fund 750,000 500,000 - 500,000 Total Transfers In 750,000 500,000 - 500,000 Operating Transfers Out General Fund - - - - Total Transfers Out - - - - Net Operating Transfers 750,000 500,000 - 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 (33,868) (28,679) (28,679) - Total Transfers Out (33,868) (28,679) (28,679) - Net Operating Transfers (33,868) (28,679) (28,679) - Community Development Block Grant (CDBG) Fund Operating Transfers In General Fund 154,000 154,000 154,000 - Total Transfers In 154,000 154,000 154,000 - Operating Transfers Out General Fund - - - - Total Transfers Out - - - - Net Operating Transfers 154,000 154,000 154,000 - Gas Tax Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (967,495) (965,000) (965,000) - Total Transfers Out (967,495) (965,000) (965,000) - Net Operating Transfers (967,495) (965,000) (965,000) - Transportation Development Act (TDA) Fund Operating Transfers In B-42 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Supplemental Revised 2017-18 Budget Budget Variance 2018-19 General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (29,836) (45,000) (45,000) - Total Transfers Out (29,836) (45,000) (45,000) - Net Operating Transfers (29,836) (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 505,533 257,400 257,400 - Total Transfers In 505,533 257,400 257,400 - Operating Transfers Out General Fund - - - - Total Transfers Out - - - - Net Operating Transfers 505,533 257,400 257,400 - Parkland Development Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (160,000) - - - Total Transfers Out (160,000) - - - Net Operating Transfers (160,000) - - - Transportation Impact Fee Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (250,000) (250,000) (250,000) - Total Transfers Out (250,000) (250,000) (250,000) - Net Operating Transfers (250,000) (250,000) (250,000) - Fleet Replacement Fund Operating Transfers In General Fund 11,347 - - - Local Revenue Measure 768,000 624,000 773,000 (149,000) Total Transfers In 779,347 624,000 773,000 (149,000) Operating Transfers Out Debt Service Fund (130,000) (265,000) (265,000) - Local Revenue Measure (638,000) (508,000) (508,000) - Total Transfers Out (768,000) (773,000) (773,000) - Net Operating Transfers 11,347 (149,000) - (149,000) Open Space Protection Fund B-43 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Supplemental Revised 2017-18 Budget Budget Variance 2018-19 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 - (17,000) (17,000) - Total Transfers Out - (17,000) (17,000) - Net Operating Transfers - (17,000) (17,000) - Los Osos Valley Road Sub-Area Fee Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - Information Technology Replacement Operating Transfers In General Fund 103,500 953,627 953,627 - Local Revenue Measure Sub-Fund 536,500 182,023 182,023 - Parking Enterprise Fund 6,633 18,854 18,854 - Sewer Enterprise Fund 14,923 71,780 71,780 - Transit Enterprise Fund 3,317 56,570 56,570 - Water Enterprise Fund 22,662 52,150 52,150 - Whale Rock Enterprise Fund 2,210 15,963 15,963 - Total Transfers In 689,745 1,350,967 1,350,967 - Operating Transfers Out Local Revenue Measure Sub-Fund (536,500) (182,023) (182,023) - Total Transfers Out (536,500) (182,023) (182,023) - Net Operating Transfers 153,245 1,168,944 1,168,944 - Major Facility Replacement Operating Transfers In General Fund 194,635 42,300 42,300 - General Purpose CIP - - - Local Revenue Measure Sub-Fund 483,900 507,700 507,700 - Water Enterprise Fund 3,600 21,600 21,600 - Sewer Enterprise Fund 3,600 21,600 21,600 - B-44 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Supplemental Revised 2017-18 Budget Budget Variance 2018-19 Total Transfers In 685,735 593,200 593,200 - Operating Transfers Out Local Revenue Measure Sub-Fund (483,900) (507,700) (507,700) - Total Transfers Out (483,900) (507,700) (507,700) - Net Operating Transfers 201,835 85,500 85,500 - Infrastructure Investment Fund Operating Transfers In General Fund - 250,000 250,000 - Total Transfers In - 250,000 250,000 - Operating Transfers Out General Fund - - - - Total Transfers Out - - - - Net Operating Transfers - 250,000 250,000 - Debt Service Fund Operating Transfers In General Fund 3,735,887 2,920,500 2,920,500 - Fleet Replacement Fund 130,000 265,000 265,000 - Total Transfers In 3,865,887 3,185,500 3,185,500 - Operating Transfers Out General Fund - - - - Total Transfers Out - - - - Net Operating Transfers 3,865,887 3,185,500 3,185,500 - B-45 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Supplemental Revised 2017-18 Budget Budget Variance 2018-19 Water Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (941,337) (953,426) (953,426) - Major Facilities Replacement Fund (3,600) (21,600) (21,600) - Information Technology Replacement Fund (22,662) (52,150) (52,150) - Total Transfers Out (967,599) (1,027,176) (1,027,176) - Net Operating Transfers (967,599) (1,027,176) (1,027,176) - Sewer Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (799,192) (808,438) (808,438) - Major Facilities Replacement Fund (3,600) (21,600) (21,600) - Information Technology Replacement Fund (14,923) (71,780) (71,780) - Total Transfers Out (817,715) (901,818) (901,818) - Net Operating Transfers (817,715) (901,818) (901,818) - Whale Rock Commission Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out Information Technology Replacement Fund (2,210) (15,963) (15,963) - Total Transfers Out (2,210) (15,963) (15,963) - Net Operating Transfers (2,210) (15,963) (15,963) - Parking Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (151,011) (151,011) (151,011) - Information Technology Replacement Fund (6,633) (18,854) (18,854) - Total Transfers Out (157,644) (169,865) (169,865) - Net Operating Transfers (157,644) (169,865) (169,865) - Transit Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out General Fund (58,081) - (58,081) 58,081 Information Technology Replacement Fund (3,317) - (56,570) 56,570 Total Transfers Out (61,398) - (114,651) 114,651 Net Operating Transfers (61,398) - (114,651) 114,651 Boysen Ranch Conservation Fund Operating Transfers In General Fund - - - - Total Transfers In - - - - Operating Transfers Out B-46 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Supplemental Revised 2017-18 Budget Budget Variance 2018-19 General Fund - - - - Total Transfers Out - - - - Net Operating Transfers - - - - NET OPERATING TRANSFERS 13,800 (92,430) - (92,430) B-47 Section C STATUS OF GOALS AND OBJECTIVES UPDATE: 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 October 1, 2018. 2017-19 MCG ACTION HIGHLIGHTS 2018 Housing 73% 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 September 30, 2018, the Affordable Housing Fund has a balance of approximately $1.5 million. The City continued to implement the Inclusionary Housing Requirement throughout 2018, and has over 8 Affordability Agreements in process through long-term and equity-share programs. Pursuant to the recently adopted Zoning Regulations, workforce housing is now incorporated as an income category. Staff has begun preliminary development of a scope of work for the required update of the City’s Housing Element, which will include a affordable housing nexus study and a workforce housing program. This Update will be completed in conjunction with the upcoming 6th cycle Regional Housing Needs Allocation (RHNA) for San Luis Obispo County. It is anticipated the completion of this work effort by December 2020. Multi-Modal Transportation 60% Complete Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range Transit Plan . In October staff completed the first designated ‘Complete Streets’ project on Laurel Lane. This project was a top priority in the 2015 Traffic Safety Report, noting the need to improve pedestrian safety along this corridor with connections to schools, parks, trails and key recreational facilities. The improvements included safety improvements for all users, vehicles, bicycles, pedestrians, and transit riders. Major City Goals (MCG) • Housing • Multi-Modal Transportation • Climate Action • Fiscal Sustainability & Responsibility Other Important Objectives (OIO) • Downtown Vitality C-11 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. Traffic safety projects continue to be implemented. The signal upgrade at Monterey/Osos is complete and trip hazard created by the street tree’s impact on the sidewalk at 1005 Monterey Street has been repaired. The Annual Traffic Safety Report for calendar year 2016 was presented to Council on February 6, 2018 and 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 Bikeway Plan received final approval by Council on September 4, 2018, including amendments to identify specific recommendations for the challenging “middle segment” between Lincoln and Ramona. Right- of-way negotiations with the LDS Church were completed in December 2018, approving a permanent easement for a city-maintained multiuse path connecting Foothill and Ramona. Design of Phase 1 of the project—which includes the multiuse path thru the LDS Church property, a signalized bicycle/pedestrian crossing at Foothill/Ferrini, and a two-way cycle track on Ramona—is well underway, with construction planned to begin 1 st Quarter of 2019. 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. Currently staff is working on critical grant funded projects such as the Railroad Safety Trail – Taft to Pepper, Mid Higuera Widening, the Prado Road Bridge and Santa Fe Bridge replacement projects and the Tank Farm/Orcutt Road Roundabout. Some projects, such as minor NTM projects were delayed in order to meet deadlines and not endanger grant funding. SLO Transit has continued to adjust services based upon input from riders and community members. To date, SLO Transit has implemented almost 80% of the road network changes recommended in the City’s 2017-22 Short Range Transit Plan within its first year of the plan’s adoption. Service intensity will come as additional funding sources materialize. In conjunction with service changes, SLO Transit has replaced eight old bus shelters that had reached the end of their “useful life” and installed four new bus shelters at stops meeting thresholds using state awarded PTMISEA funds. SLO Transit has won three awards since implementing the SRTP. SLO Transit was recognized as Outstanding Transportation Agency by the California Association of Coordinated Transit. The award recognized the City’s update and modernization of services and its fleet. The American Public Works Association (APWA) also recognized this project as a Project of The Year for 2017-18. And, METRO Magazine award SLO Transit it’s 2018 Innovation Award. C-12 Climate Action 75% 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 held Green Team meetings and supporting the Climate Coalition Task Force as staff liaison. Staff has been working the updated climate action plan, which will include a pathway to the carbon neutral by 2035 target. Due to the more aggressive target, staff expects the plan to be completed in Fall 2019. Staff has worked to create sustainability incentive programs through support of the development of a green business program for local businesses, the SLO Green Challenge website for residents, and by working in collaboration with regional partners. In April 2018, staff received a biennial facility energy benchmarking report and is pursuing energy efficiency lighting audits and retrofits. As of September 2018, Council provided approval to staff to negotiate on-bill financing for lighting retrofits; as of December staff was identifying permitting requirements. In December of 2018, staff executed Power Purchase Agreements for solar installations at three facilities: the Bus Yard, Fire Station One, and Reservoir One. 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, which 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 of 2018, the City received confirmation from the City of Morro Bay of intent to participate in the Community Choice Energy (CCE) program. In December of 2018, both cities joined Monterey Bay Community Power’s CCE program and will begin receiving carbon free electricity in January of 2020. C-13 Fiscal Sustainability & Responsibility 65% 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. These first year reductions have additional year 2 and year 3 savings that will be included in the 19-21 Financial Plan process. Staff conducted a 10-year review of the 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 addition, 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. Along with our regional partners, the City continues to address closure of the Diablo Canyon Power Plant and prepare for the impacts to the region due to significant loss of jobs and property taxes. In January 2018, the California Public Utilities Commission (CPUC) rejected the PG&E settlement with the local governments based on an administrative judge ruling last year. On September 19, 2018, Governor Brown signed SB 1090, directing the CPUC to approve the $85 million economic mitigation settlement and PG&E’s full $350 million proposed employee retention and retraining program. 2017-19 OTHER IMPORTANT OBJECTIVES ACTION HIGHLIGHTS 2018 Downtown Vitality 85% Complete Continue to improve safety, infrastructure investment, and maintenance in the Downtown and support Downtown Association’s (Downtown SLO’s) proposal to consider a Downtown improvement district. Recent accomplishments of note include the completion of infrastructure improvements to Garden Street including sidewalks, crosswalks, street work and the installation of banner arms. Maintenance work continues in the downtown core which includes tree maintenance, sidewalk scrubbing, and street sweeping. In January through June 2019, additional tree pruning and tree replacements, including any necessary infrastructure replacements, will occur in 26 locations. The next Downtown Renewal Project located in the 800 block of Higuera Street is delayed and anticipated to start construction in Winter 2020. Replacement of the Marsh Street Bridge design work continues and is scheduled to start construction in Fall of 2019. Planning work for the Downtown Concept Plan and Mission Plaza Concept Plan is complete. Implementation of portions of the Mission Plaza Concept Plan commenced in the summer of 2018 with the Mission Plaza Restroom Replacement Project design. The Community Action Team (CAT) continues to maintain public safety by focusing efforts in addressing chronic offenders within the downtown. Continued collaboration with Downtown SLO to educate the community on homelessness issues is underway and there remains a high volume of calls for service due to homelessness issues. Police Department coordination with the County of San Luis Obispo to expand mental health services is ongoing. The County has awarded a contract to Transitions-Mental Health Association for services and a Memorandum of Understanding has been signed between the City and Transitions-Mental Health Association to help address C-14 transient mental health needs. 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. Hiring of officers has been a challenge and resulted in the Downtown Bicycle Patrol team being reassigned out of the downtown for the past several months. Downtown SLO is continuing its initiative to form a Property-Based Business Improvement District (PBID) with outreach to property owners and identifying the benefits of a new assessment to expand its services. It has identified four high level categories that would be supported by the PBID – the addition of more downtown ambassadors, enhanced cleaning, beautification and placemaking, and enhanced operations and communication. Downtown SLO is also working with the City’s support on expanding its existing Banner and Tree Lighting programs. 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 for consideration and direction. 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. Complete The Zoning Regulations Update began in May 2017 and was introduced to Council in in August 2018 and adopted in September 2018. 2 Affordable Housing Nexus Study 6/2020 The Affordable Housing Nexus Study was initially delayed to complete the Capital Facilities Fee Program Nexus Study, which was adopted by Council in April 2018. Staff will be preparing a Request for Proposals (RFP) for the Affordable Housing Nexus Study as part of the Housing Element Update. 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. 3/2020 An Administrative Draft Workforce Housing Program will be available for community and stakeholder review in Spring 2020. 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. 3/2020 An Administrative Draft Workforce Housing Program will be available for community and stakeholder review in Spring 2020. 5 HE 6.12, 6.13 & 6.27 & LUE 4.0.28: Continue to develop incentives to encourage additional housing Complete This was included in the Zoning Regulations Update, but may require further amendment C-15 in the Downtown Core (C-D Zone), including alternatives to calculating residential density, to encourage the development of smaller efficiency units. 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. 12/2020 An updated list of applicable properties will be developed in accordance with the Housing Element Update. 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. 3/2019 A list of applicable properties was identified and inventoried. They will be evaluated further following the completion of the Subdivision Regulations Update. Any eligible properties will be identified as part of the Housing Element Update. 8 HE 6.30: Eliminate the one-acre minimum lot area for PD overlay zoning, and identify incentives to conventional subdivision design. 3/2019 A list of applicable properties was identified and inventoried. They will be evaluated further following the completion of the Subdivision Regulations Update. Any eligible properties will be identified as part of the Housing Element Update. 9 HE 6.31: Consider scaling development impact fees for residential development based on size, number of bedrooms, and room counts. Complete 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 The Zoning Regulations Update included standards to allow tiny homes up to 400 square feet on all properties where a single family dwelling exists. 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 or other incentives will be evaluated in the Affordable Housing Nexus Study. Implementation will be considered in the update of the Housing Element. 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 Program. 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 C-16 work effort will continue to be supported through the updated Zoning Regulations , the Subdivision Regulations Update, the Workforce Housing Program, and the Housing Element Update. 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 continues to support employers and developers whom are interested in partnerships to develop housing projects 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 implement strategies to increase the production of housing. Ongoing Ongoing work effort. City Staff participate and attend the meetings of the Workforce Housing Coalition and serve as a voting member of the San Luis Obispo County Housing Trust Fund Loan Commission 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 updated Zoning Regulations encourage and/or provide for the continued creation of residential dwelling units in the newly adopted Downtown Overlay Zone (D Zone). 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 C-17 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. The associated Development Agreements guarantee the future development of rental and for-sale residential development products for 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 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 12/2019 Right of way acquisition underway, Council Closed Session held in March; 60% plan set approved by UPRR. 100% plans under review by City. 2 Complete Railroad Safety Trail Extension – Pepper to Train Station. 3/2019 3/2020 Design awarded October 2018; estimated design to be complete by spring 2019 with construction to happen concurrently with the Railroad Safety Trail Taft to Pepper. 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. (now Anholm Bikeway) 01/2019 05/2019 Council adopted plan on February 5th and again updated project on February 20th and April 10th. Final amendments approved September 4th. Negotiations with LDS for right of way completed. Phase 1 design nearly complete with start of construction tentatively scheduled for May 2019 due to additional time constraints of Council direction for C-18 neighborhood meetings and revisions to Phase II of project. 5 Implement Minor Bicycle Facility Improvements. Ongoing Additional green and buffered bike lane improvements were completed as a component of the neighborhood Roadway Sealing and Laurel Lane Complete Streets 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. Design underway and scheduled to be complete 1/2019. Constuction estimated for the summer 2019 7 Complete Pedestrian & Bikeway Maintenance. Ongoing Meadow Park Pathway work anticipated to start construction in summer 2019. 8 Complete Sidewalk Replacements & New Installations. Ongoing The complete replacement of wooden boardwalk sidewalk planks with new concrete pavers along Santa Barbara Avenue, High Street and Osos Street will begin in January 2019. 26 locations within the downtown core have been identified for repair in conjunction with tree maintenance work. Other notable sidewalk repairs occurred at 686 Higuera and 393 Marsh Street. 9 Complete New Streetlight Installations. Ongoing Scheduled 1st installation for spring of 2019. PG&E engineering and review requirements had delayed project from anticipated December installation. PD has completed review of existing lights with obstructions – and those obstructions have been removed by city staff. 10 Construct Safe Routes to School: Foothill X-Ing Project. Ongoing Summer 2019 Foothill/Ferrini crossing and Class I Path in design as part of Anholm Bikeway Phase 1. Construction start targeted 1st Quarter 2019--Right-of-way agreement with LDS Church is complete. 11 Begin Bicycle Transportation Plan update to Active Transportation Plan. Ongoing Consultant has been selected and work will commence. In a significant improvement – the Bicycle Transportation Committee has been designated the Active Transportation Committee by Council action. They will be critical in reviewing the plan from both a bicycle and pedestrian perspective. 12 Develop Parklet Application Guide. 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. C-19 15 Implement revised routes and schedules for Short Range Transit Plan. Complete Staff continues to monitor and adjust routes for service delivery. The Plan is 85% implemented and ridership for FY 18-19 has increased over last year this same time frame. In addition, 8 transit shelters have been replaced and 4 added to the transit network. 16 Upgrade and replace the SLO Transit Automatic Vehicle Locators (AVL) system. 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. 3/2019 9/2020 Design has begun on this project. Due to Right of Way constraints discovered during initial design, record of survey and property acquisition will be necessary, necessitating a revised construction target of Fall 2019. 19 Begin Construction of Prado Road Bridge Widening at SLO Creek. 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 to be presented to Council 1st quarter 2019. 22 Implement 2015 Traffic Safety Report Projects. 6/2019 Signal at Monterey/Osos is complete. Design underway for Broad/Marsh signal upgrades, with construction planned 1st Quarter 2019. Laurel Lane pedestrian improvements completed as part of 2018 resurfacing program. 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. 10/2018 Design will be complete 10/2018. 25 Complete Bridge Maintenance Projects. 2/2019 6/2019 Preventative bridge maintenance project work was rescoped to complete major maintenance work on El Capitan Pedestrian and Bike Bridge. The project design is complete and construction is estimated to start in late Spring or early Summer 2019 pending successful appropriation of construction funds. C-110 26 Complete Street Reconstruction & Resurfacing. Ongoing The Concrete Streets and Accessibility Improvements project was completed in August. The neighborhood Roadway Sealing and Laurel Lane Complete Streets project is complete. This project completed maintenance on 25% the City’s neighborhood streets and delivered the City’s first designated Complete Streets project. The Laurel Lane project includes significant safety improvements for all users. 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. Bike box installed on Chorro at Foothill as part of 22 Chorro development. 28 Continue implementation of the City’s Neighborhood Traffic Calming Program at reduced level from prior years. Ongoing The NTM program at Chorro is complete the test phase with staff and community followup to determine next steps. The Buchon NTM was delayed due to other priorities and is resuming 4th Quarter of 2018. 29 Continue Traffic Signs and Striping maintenance. Ongoing Approximately 100 signs replaced in the summer of 2018 to meet retro reflectivity standards. 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”. Complete The position of Sustainability Manager was filled in March 2018. The “Green Team” meets regularly and will be a vital source of information for the Climate Action Plan Update. The SLO Climate Coalition Task Force meets every other week, has successfully held numerous community outreach events, and serves as a valuable resource for technical support. The Task Force will be issuing it’s first annual report in early 2019. 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 Complete Staff conducted a wide scan of other US cities that have a carbon neutral target and presented the findings, along with a roadmap to decarbonization, to the City Council in September 2018. The Climate Action Plan Update will further explore the roadmap to carbon neutrality as well as the potential for creating carbon neutral districts. In December of 2018, the City officially joined C-111 Monterey Bay Community Power’s Community Choice Energy program and will begin receiving carbon free electricity beginning January 2020. 3 Updating the Climate Action Plan. 6/2019 9/2019 Staff has initiated the Climate Action Plan update process and expects to have a consultant team under contract to support the effort by January 2019. Given the unexpected “carbon neutral by 2035” target provided by Council, the Climate Action Plan may take slightly longer than expected to complete. 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. Complete As part of the Climate Action Plan update, staff re-evaluated 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. Complete The City’s community GHG inventory was completed in August 2018 and presented to Council in September 2018. 6 Biennial reporting on the effectiveness of individual climate action adaptation and GHG emission reduction strategies. 6/2019 9/2019 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 9/2019 The Climate Action Plan update will be developed to integrate accountability and monitoring processes into measure implementation. 8 Development of enhanced incentive programs. Complete 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. The Regional Energy Network will begin serving the City in January 2019. 9 Performance of energy assessments/audits on all City-owned facilities. Complete Performance assessments of energy use at City facilities is 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. Ongoing Council approved staff’s use of on-bill financing to fund lighting retrofits at facilities throughout the agency. As of December 2018, final project details were still being negotiated and permitting requirements were being evaluated. Additional efforts to site upwards of 1MW of C-112 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 Power Plant. Ongoing The City has filled 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 With the Governor’s signing of SB 1090, the City continues to move forward on the Economic Strategy Project with other cities, the County and regional stakeholders. 3 Complete an update of the City’s Development Impact Fee Program (AB 1600). Complete Adopted March 2018. 4 Increase revenues from property, sales, and Transient Occupancy Tax (TOT) by implementing strategies in the EDSP. Ongoing TOT collection in 2017-18 was up by 1.9%, nearly double the growth projection of 1% for this fiscal year. 5 Continue partnership with the SLO 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 Complete A statistically valid survey was completed in March 2018. Internal and external solar renewable energy systems on City facilities to lower energy costs are also underway, including execution of contracts for solar at the Bus Yard, Reservoir One, and Fire Station One. City Hall HVAC has been replaced with a more energy efficient unit. 11 Monitoring and measuring of City-owned facility and infrastructure performance. 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. Ongoing Comprehensive audit of minor, or secondary infrastructure pending input from stakeholders. 13 Implement Plastic Straw Regulations. Complete Implementation is ongoing. 14 Implement Plastic Bottle Regulations. Complete Implementation is ongoing. C-113 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 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. 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. Complete 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 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. 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 Commission. Ongoing Staff holds public meetings with Revenue Enhancement Oversight Commission (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. Ongoing As a result of SB 968, UC Berkeley is currently conducting an economic impact analysis study and fiscal impact analysis study related to the Economic Strategy Project. 13 Conduct a comprehensive review of fiscal policies and fund balance requirements. Spring 2019 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. C-114 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 14 Provide a recommendation for strategic budget direction prior to submitting a 2018-19 Supplemental Budget that achieves long-term structurally balanced fiscal outlook. 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. 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 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. Complete Council reviewed and approved in open session the Labor Relations Objectives (LRO) on March 20, 2018. The LRO will continue to guide labor negotiations with employee groups and have led to successor agreements with the Firefighters Local 3523, Police Officers Association, and the unrepresented Management and Confidential 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 over $500,000 annual savings when compared with the primary insurance pool. However, based on workers’ compensation claim experience moving to an excess insurance program is not recommended at this time. A thorough analysis of the workers’ compensation program indicates moving to the excess insurance program would cost the City more C-115 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 than the primary insurance pool. Based on types of injuries, a pilot strength and functional movement program for Fire Suppression personnel has been approved to reduce potential strains and workers’ compensation costs. An aggressive return to work program is supported by all departments. 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. 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 this 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 claim costs by 10% in the first year (FY 2016-17), and 20% in the second year (FY 2017-18). While workers’ compensation claim costs have declined slightly during this period, based on the number and severity of workers compensation claims, this program will not achieve the 30% in 3 years reduction goal. Claims for both programs are closely monitored; liability claims are closed as quickly as possible and workers compensation claims are managed to expedite necessary medical care and return to work. 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 2019 Staff is currently updating the fleet replacement policy and age/mileage target guidelines to better reflect all criterion that Fleet Services evaluates in fleet replacement proposals. This includes: compliance, engine hours, manufacture defects, mileage, age, utilization, and fleet management system analytics. The updated policy guidelines will be reviewed by council in early 2019 and are being utilized to create the fleet replacement list that will be proposed for the 19-21 Financial Plan. C-116 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 Other improvements include the following: Implementation of a top tier fleet and fully integrated fuel management system that provides the ability to track all fuel and repair costs by fleet asset, program, and department. Investments in hybrid technology on specific vehicles to gain fuel economy, reduce carbon footprint/GHG emissions and meet City sustainability goals. Outfitting of high usage vehicles such as Police Patrol vehicles with anti-idling systems and specifying work vehicles and equipment with idle shutdown features to reduce fuel use, emissions output, and engine wear and tear. Implemented the use of renewable diesel for all general fleet diesel powered vehicles and equipment resulting in 30-40% emissions reduction from those units. Transit is reviewing recent State Zero Emission Vehicle (ZEV) mandates and will be developing an Electrification/ZEV implementation Plan for systemwide vehicle conversion. 24 Develop a contingency plan to address potential additional changes to long-term unfunded CalPERS and OPEB liabilities. Spring 2019 Plans for addressing long-term unfunded liabilities will be presented to Council in Spring/Summer 2019. 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). Ongoing 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. Next steps are 1) staff work on project list and community engagement and 2) Council action on next steps on February 5th, 2019 27 Develop creative infrastructure financing options (grants, land-based funding, local revenues) for Council consideration and implement as directed. 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. C-117 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 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 (Downtown SLO’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. Fall 2019 6/2020 Environmental Impact Report (EIR) was presented to Council in Summer 2018 for review and was approved. Service contract to be reviewed in February and design work is planned to commence in the Spring of 2019. 2 Construct next phase of Downtown Renewal capital improvement project focused on the 800 block of Higuera Street. Winter 2019 Project is planned to start construction in January 2020 pending coordination with Downtown SLO and adjacent properties. 3 Actively work with San Luis Obispo Council of Governments (SLOCOG) and SLO Regional Transit Authority (RTA) to relocate the current Downtown Transportation Center to a new location east of Santa Rosa Street. Ongoing On hold SLOCOG is exploring other options for the future location of the Downtown Transportation Center. 4 Design of the Mission Plaza Concept Plan - Mission Plaza Restroom Replacement. Summer 2019 Consultant services procured and work continues to scope the project that will include 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 Fall 2019 Pending completion of right-of-way phase, authorization to advertise for construction bids will be requested of Caltrans with an anticipated start of construction in Fall 2019. 7 Assist noncompliant properties to achieve compliance with the Downtown Fire Sprinkler Ordinance. Winter 2018 Fall 2019 The fire department continues to assist noncompliant properties to achieve compliance with the Downtown Fire Sprinkler Ordinance. C-118 Downtown Vitality: 2017-19 Action Plan Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown and support the Downtown Association’s (Downtown SLO’s) proposal to consider a Downtown Improvement District. # Task Completion Date Revised Status 8 Continued operation of the Community Action Team (CAT) in Downtown. Ongoing The Community Action Team currently has one officer and continues to focus on addressing chronic offenders within the downtown. Additionally, work continues with City Rangers on open space violations and postings. Hiring for the Mental Health position with CAT and Transitions-Mental Health Association (TMHA) is complete. 9 Continued Downtown Bicycle Patrol. Ongoing The police department will reassign two bicycle officers when resources allow due to minimum staffing patrol needs. 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 a full time social worker has been hired to work with the Police Community Action Team. A MOU has been completed and signed by both TMHA and the City. 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 2018 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. Additionally the police department has two trained in CPTED (Crime Prevention Through Environmental Design) evaluations to assist in the reduction of crime within downtown. 12 Council and community review and consideration of Downtown Concept Plan. Complete 13 Council and community review and consideration of Mission Plaza Concept Plan. 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 2019 A budget request to implement the first phase of work will follow review and approval of design concepts in the first half of 2019.. 16 Complete the City’s Zoning Regulations Update. Complete City Council adopted the Zoning Regulations Ordinance on August 21, 2018. The second reading of the Ordinance was on September 18, 2018. The Ordinance became effective on October 19, 2018. Subsequent amendments will be considered by City Council through Spring 2019. C-119 Downtown Vitality: 2017-19 Action Plan Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown and support the Downtown Association’s (Downtown SLO’s) proposal to consider a Downtown Improvement District. # Task Completion Date Revised Status 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 Pepper at the railroad trellis) 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. Complete Downtown SLO is moving forward in their outreach to property owners to form a Property Based Improvement District (PBID). 19 Coordinate, in partnership with Downtown SLO, exploration of opportunities to provide enhanced maintenance or other services to maintain Downtown vitality. Ongoing Spring 2019 Downtown SLO is in the process of projecting increased revenue from the formation of a PBID and identifying services to be funded. It is also working with the City to expand its banner and tree lighting programs. 20 Design Farmers’ Market Safety Project and circulate for bids 11/2018 Fall 2019 Project approved by Council as part of Mid- Year budget. Bid package under design for Project will be phased to include barriers at both ends of Higuera and both ends of Chorro; and, both entrances to Mission Plaza. Original design has been modified to accommodate the presence of conflicting underground utilities and the shallow depth of the bridge deck on Higuera. C-120 Section D RECENT FINANCIAL AND REVENUE REPORTS Sales Tax Update In Brief Top 25 producers In AlphAbetIcAl Order www.hdlcompanies.com | 888.861.0220 Q22018 San Luis Obispo San Luis Obispo’s receipts from April through June were 9.9% below the second sales period in 2017. However, CDTFA’s transition to a new reporting system resulted in multiple returns not processed in the current period for the second quar- ter in a row. Comparisons in sectors like autos, fuel-service stations and building-construction were heavily impacted by the lack of allocations. Including expected remittances and other reporting aberrations, actual sales were up 3.3%.Once adjusted, the continued strong car buying market and fa- vorable financing options enhanced new car sales, while the current sta- ble housing market and improved infrastructure spending contributed to produce solid growth from plumb- ing/electrical and contractor suppli- ers.Weak summer sales by multiple general consumer retailers partially offset the adjusted gains.The City’s voter approved half-cent transaction tax, Measure G, gen- erated an additional $1,759,968, a 7.2% decrease over last year. This additional revenue source was also temporarily impacted by CDTFA software changes. Net of aberrations, taxable sales for all of San Luis Obispo County declined 3.8% over the comparable time period; the Central Coast re- gion was down 1.3%. San Luis Obispo Third Quarter Receipts for Second Quarter Sales (April - June 2018) Published by HdL Companies in Fall 2018 Air Vol Block Alfano Motorcars Mercedes Benz Chevrolet Apple Best Buy Coast BMW Nissan Cole Chrysler Dodge Jeep Cole Mazda Conserv Fuel Costco Edna Valley Shell Ferguson Enterprises Financial Services Vehicle Trust Hayward Lumber Home Depot Independent Electric Supply Laguna Lake Shell Madonna Inn Perry Ford Lincoln Volkswagen Rancho Grande Motors Buick Gmc Hyundai Subaru Smith Volvo Sunset Honda Target Tennis Warehouse Tesoro Refining & Marketing United Rentals Vons $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 SALES TAX BY MAJOR BUSINESS GROUP 2nd Quarter 2017 2nd Quarter 2018 General Consumer Goods Autos and Transportation County and State Pools Restaurants and Hotels Building and Construction Business and Industry Fuel and Service Stations Food and Drugs $16,387,985 $16,959,670 8,163 8,302 2,215,761 2,035,287 $14,164,061 $14,916,081 2017-182016-17 Point-of-Sale County Pool State Pool Gross Receipts REVENUE COMPARISON Four Quarters – Fiscal Year To Date (Q3 to Q2) Measure G $7,418,011 $7,510,414 D-1 NOTESSales Tax UpdateQ2 2018 San Luis Obispo $0 $2,000 $4,000 $6,000 $8,000 SALES PER CAPITA San Luis Obispo Q2 15 Q2 18 Q2 16 Q2 17 County California 26% Cons.Goods 21% Autos/Trans. 15% Pools 13% Restaurants 10% Building 6% Bus./Ind.5% Fuel5% Food/Drug San Luis Obispo This QuarterREVENUE BY BUSINESS GROUP Q2 '18* San Luis Obispo SAN LUIS OBISPO TOP 15 BUSINESS TYPES Business Type Change Change Change County HdL State*In thousands of dollars 45.9%60.9%47.8% 79.8 Auto Lease -30.9%-23.2%-19.6% 161.3 Building Materials -22.7%-12.6%-14.9% 242.5 Casual Dining -4.0%-10.7%-8.9% 80.9 Contractors -5.8%-13.5%-14.1% 344.4 Discount Dept Stores — CONFIDENTIAL — 0.4%-5.1%4.5% 143.2 Electronics/Appliance Stores -29.8%-27.2%-25.1% 72.6 Family Apparel 3.9%-3.3%-3.0% 78.0 Fast-Casual Restaurants -9.2%-7.0%-5.4% 104.2 Grocery Stores -17.8%-21.7%-15.9% 85.1 Home Furnishings -6.1%-1.9%-17.1% 594.9 New Motor Vehicle Dealers 9.4%-6.7%3.6% 119.4 Plumbing/Electrical Supplies -8.9%-5.8%-17.6% 84.9 Quick-Service Restaurants -17.8%-26.4%-33.9% 181.6 Service Stations -38.8%-20.9%-29.6% 96.8 Sporting Goods/Bike Stores -12.2%-24.2%-15.6% 43.1% -9.9% 3,214.8 582.7 3,797.5 Total All Accounts County & State Pool Allocation Gross Receipts 28.5% 5.5% -19.1% -10.1% California Overall Local Government cash receipts from April through June sales dropped 10.1% from the same quarter one year ago due to implementation issues with CDFTA’s new tax reporting software system. The results were further skewed by the State’s attempt to offset the resulting shortages by advancing tax revenues that it estimates will be generated next quarter. After reviewing unprocessed returns and approximating the full amounts of partial payments, HdL estimates that once all returns are properly processed and the data adjusted to reflect actual quarter receipts, statewide local sales and use tax revenues will be 1.6% higher than second quarter 2017. Sales of building and construction materials, jet fuel and online shop- ping appear to have been the primary drivers of statewide growth during the second quarter. Auto sales leveled off as previously anticipated, although receipts from auto leases continued to show substantial gains. Online fulfillment centers and value themed apparel stores were the primary gainers within the general consumer goods group. Business-industrial purchases were slightly lower than previous quarters with declines in new energy projects being a major factor. Regionally, the San Francisco Bay area and the Sacramento and San Joaquin Valley areas outperformed the rest of the state. Tariff Policies and Sales Tax Tariffs are becoming a key element of the federal government’s international trade strategy with additional duties of 10% announced for the end of the third quarter, rising to 25% by the end of 2018. Despite the current debates, analysts be- lieve that the impact on prices and sales will be minimal through the remainder of 2018-19 as most major retailers have already imported their inventory for the holiday season and are attempting to rush spring inventories through customs ahead of the new 5% rates. Many man- ufacturers have managed to avoid rais- ing prices by absorbing the costs of the initial first round of tariffs on metals, machinery and components. On the down side, small retailers without the power to lock in prices may be placed at a competitive disadvantage and contrac- tors are beginning to require escalation clauses in contracts to cover potential cost increases on long range projects. The key concern for analysts project- ing 2019-20 tax revenues will be how the federal government refines its trade policies and the impact on sales and use tax revenues. Although higher prices generate more sales tax from individual purchases, they also potentially reduce the number of purchases, particularly in an environment where rising housing, education and health care costs compete for a significant portion of discretionary income. Proponents of rising tariffs argue that the rising strength of the U.S. dollar will offset the impact of tariff related price increases on consumers. Opponents worry that the stronger dollar and the announced $5.6 billion in retaliatory tariffs on California exports will neg- atively impact both the affected com- panies’ job base and capital investment in supplies, equipment and expansion opportunities. D-2 Monthly TOT Report November 2018 November 30, 2018 This report covers the City's transient occupancy tax (TOT) revenues for November 2018 compared with the two prior years. As reflected below, revenues for the month of November 2018 are up by 8.8% from the same month last year and up 6.3% year to date over the prior year. Currently this report covers 39 hotel establishments representing 2,214 rooms. It also includes $21,477.94 collected from 64 Homestay properties year to date. For more information, please call Marjorie Hernandez at (805) 781-7436. 2016-17 2017-18 2018-19 Amount Percent July $877,391 880,321 879,231 (1,090) -0.1% August 765,232 734,830 818,375 83,545 11.4% September 650,117 701,230 697,898 (3,332) -0.5% October 628,049 613,045 705,446 92,402 15.1% November 497,218 519,193 564,930 45,737 8.8% Year To Date Total 3,418,008 3,448,619 3,665,880 217,261 6.3% December 434,836 479,813 479,813 - January 396,559 415,461 415,461 - February 439,735 502,476 502,476 March 549,732 577,221 577,221 April 708,724 653,881 653,881 May 645,114 626,025 626,025 June 765,362 795,368 795,368 This report is based on the amounts reported by the operators for the month in which the tax is due. D-3