HomeMy WebLinkAbout05/20/1995, Agenda & PRELIMINAREY 1995-1997 FINANCIAL PLAN I
all city Of SM IDIS OBISPO
COUNCIL AGENDA
Saturday, May 20 1995 - 8:30 AM
Council Chamber, City Hall
990 Palm Street, San Luis Obispo WORKSHOP
CALL TO ORDER: Mayor Allen K. Settle
PLEDGE OF ALLEGIANCE
ROLL CALL: Council Members Bill Roalman, Kathy Smith, DQdie Williams
Vice Mayor Dave Romero and Mayor Allen K. Settle
PUBLIC COMMENT PERIOD (Not to exceed 15 minutes total)
The Council welcomes your input. You may address the. Council by completing a
speakers slip and giving it to the City Clerk prior to the meeting. At this time,:,:you may
address the Council on items that are not on the agenda or items on the Consent Agerida.
Time limit is three minutes. State law does not allow Council to discuss or take actibn on .
issues not on the:agenda, except that members of the Council or staff may briefly:'respond .
to statements made or questions posed by persons exercising their public testimonyrights.
(Gov. Code §54954.2). Staff may be asked to follow-up on such items. Staff reports-and
other written documentation relating to each item referred to on this agenda are:on.file in
the City Clerk's Office in Room #1 of.City Hall.
BUDGET WORKSHOP
PRELIMINARY 1995-97 FINANCIAL PLAN
Workshop Purpose
To introduce the Preliminary 1995-97 Financial Plan to the Council and the public:
what's included ..... and what isn't.
Workshop Agenda
8:30 am to 9:00 am Convene - greetings, coffee, tea, juice, bagels/rolls (Hearing
Room)
Council meetings are broadcast on KCPR 91.3 FM. The City of San Luis Obispo is committed to include the disabled in all of
its services, proerams and activities. Telecommunications Device for the Deaf(805)781-7410. Please speak to the City
lJ Clerk prior to the meeting if you require a hearing amplification device. For more agenda information,call 781-7103.
1
Council Agenda Saturday, May 20, 1995
9:00 am to 9:45 am Introduction to the Preliminary Financial Plan
■ Purpose, process and overall approach
■ Key budget features
■ Five year fiscal forecast vs the Preliminary Financial Plan:
how is it the same? how is it different?
■ Results of Council goal-setting: how are they integrated
into the Preliminary Financial Plan?
■ Key budget-balancing strategies
9:45 am to 10:00 Break
10:00 am to 11:30 Department Head presentations highlighting key objectives,
programs and projects in the Preliminary Financial Plan
11:30 am to 12:30 pm Public comment
12:30 pm to 1:30 pm Lunch break
1:30 pm to 3:30 pm Council questions, comments and direction on follow-up
information needed for May 23 or June 6
COMMUNICATIONS (not to exceed 15 minutes)
At this time, any Council Member or the City Administrative Officer may ask a question for
clarification, make an announcement, or report briefly on his or her activities. Imaddition,
subject to Council Policies and Procedures, they may provide a reference to staff or other
resources for factual information, request staff to report back to the Council at a
subsequent meeting concerning any matter, or take action to direct staff to place a matt
er of business on a future agenda (Gov. Code §54954.2).
ADJOURN TO TUESDAY, MAY 22, 1995 11:00 A.M. AT THE BLACKSTONE HOTEL, 840-
844 MONTEREY STREET, SAN LUIS OBISPO
2
IIIIIIIIII � �I 11111111
CIty Of SAn IDIS OBISPO
REVISED COUNCIL AGENDA
Saturday, May 20:. 199.5 - 9:00_AM REGULAR MEETING
Council Chambers, City Hail
990 Palm Street, San Luis Obispo
ADDED CLOSED SESSION:
A. RECESS TO CLOSED SESSION:
B. CONFERENCE WITH LEGAL COUNSEL - (Government Code §54956.9)
(Continued from 5/16/95.)
Existing Litigation - Merrill.v.-CiWof_San-Luis Obispo and Aispuro v. City of San Luis
Obispo.
C. RECONVENE IN OPENSESSION TO REPORT ON ACTION TAKEN
D. ADJOURN TO TUESDAY, MAY 23, 1995 AT 7:00 P.M. IN THE COUNCIL CHAMBER.
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1
II�M��II�I�II�`II�III�II f MEETING DATE:
hNuq clvJ'11/ o san suis os�spo $ -�0-9s
COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: John Dunn, City Administrative Office
SUBJECT: PRELIMINARY 1995-97 FIN CIAL AN
CAO RECONEWENDATION
Review and consider the Preliminary Financial Plan for 1995-97 at the Budget Workshop scheduled
for May 20, 1995.
DISCUSSION
Enclosed for your review and information are the following three documents:
■ Preliminary Financial Plan. This includes the budget message from the CAO, policies &
objectives, budget graphics & charts, operating program costs and descriptions, summary of
capital improvement plan projects (CIP) & funding sources, debt service requirements, changes
in fund balance/working capital; financial & statistical tables, and budget reference materials.
■ Appendix A: Significant Operating Program Changes. This appendix provides supporting
documentation for each of the significant operating program changes proposed in the
Preliminary Financial Plan. An overview is included in the appendix that further describes its
purpose, organization acid content.
■ Appendix B: Capital Improvement Plan Projects. This appendix provides supporting
documentation for each of the CIP projects proposed in the Preliminary Financial Plan. An
overview is included in the appendix that further describes its purpose, organization and
content.
The May 20 workshop is the first of several study sessions and public hearings scheduled to review
the Preliminary Financial Plan. One of the fundamental purposes of this workshop is to review these
documents with the Council in some depth. Accordingly, it is not anticipated that the Council will
have reviewed all of this material in detail by the May 20 workshop.
However, the Budget Message (starting on page A-1) is recommended as a good starting point in
beginning your review of the Preliminary Financial Plan and in preparing for the May 20 workshop.
It has been written with the goal in-mind of discussing all of the key issues reflected in the
Preliminary Financial Plan in a concise but comprehensive manner.
Focus of the May 20 Workshop
We anticipate reviewing the key issues and trends reflected in the Preliminary Financial Plan for all
City funds at the workshop, including major revenue assumptions, the City's overall fiscal condition,
significant operating expenditure & staffing changes, major CIP projects, and key budget-balancing
����� ►iIIllliillP°j��U�ll city of San JS OBISpo
COUNCIL AGENDA REPORT
strategies. All of the City's operations will be reviewed at the workshop. However, since funding
requirements for the enterprise funds will be the sole subject at a special public hearing scheduled for
the evening of May 23, it is anticipated that the May 20 workshop will focus primarily on General
Fund financial issues.
Remaining Budget Review Schedule
The following dates have been scheduled for review and adoption of the 1995-97 Financial Plan:
■ May 20 Budget Workshop: Preliminary Financial Plan review
■ May 23 Public Hearing: Enterprise fund revenue requirements and rate-setting
■ June 6 Public Hearing: Continued review of the Preliminary Financial Plan
■ June 20 Public Hearing: Continued review and adoption of the Financial Plan
■ June 26 Only if needed for continued review and adoption of the Financial Plan
Major City Goals and Other Council Objectives
Consistent with Council priorities and direction, all efforts have been made to integrate the results of
the Council's goal-setting process into this document. The way this has been accomplished is
discussed at some length in the Budget Message. To facilitate the Council's review of how these goals
and objectives have been integrated into the Preliminary Financial Plan, an index is provided at the
conclusion of the Policies & Objectives section for this purpose.
If you have any questions about the enclosed materials prior to the May 20 workshop, please do not
hesitate to contact the Assistant CAO, Finance Director or me.
ENCLOSURES
■ Preliminary Financial Plan
■ Appendix A: Significant Operating Program Changes
■ Appendix B: Capital Improvement Plan Projects
MFMNG AGENDA
San Luis Obispo Chamber of Commerce
1039 Chorro Street • San Luis Obispo, California 93401-3278
(805) 781-2777 9 FAX (805) 543-1255
David E. Garth, Executive Director
RECEIVE®
May 18, 1995 MAY 1 0 1995 IlIfOUNCIL �DDIR
DIR
MAO MCHIEF
CITY COUNCIL'
enm nrnc.on rq EY DIR
Mayor Allen Settle and Members of the City Council of
CLERKKnG FrpUCE CHF
City of San Luis Obispo ❑ MGLfT TEAM 'EC DIR
gr
990 Palm Street O FILEL DIR
San Luis Obispo,California 93401 PERS DIR
Honorable Mayor and Members of the City Council:
The San Luis Obispo Chamber of Commerce would like to voice its extremely grave concerns regarding
the direction taken in the 1995-97 Preliminary Financial Plan. The recommendations of this plan depart
significantly from established City policies dictating"commitment to fiscal health and accountability."
The plan postulates significant expenditure increases for the City,most of which will be financed through
implementation of the Cost of Services study recently completed by DMG and Associates,as well as debt
financing of capital improvement plan(CIP)projects. This approach flies against the philosophical shifts
that are taking place in both the private sector and other governmental agencies. The Chamber's
examination of the budget proposed by City Staff has led us to conclude that it is an anti-business
proposal that will be paid for largely by the business community.
Much more disturbing,however,is the fact that our entire community will pay the ultimate cost for this
fiscally irresponsible budget. Our City suffered a population decline last year. Families and businesses
are leaving San Luis Obispo because we have already priced ourselves"out of the market"vis-a-vis our
competitors to the north and south. Yet City staffs proposal to raise almost$1,000,000 in new fees is
predicated on there being no decline in demand for City services. This violates fundamental economic
theory concerning supply and demand,as well as the evidence before our very eyes. Even if we assume a
fairly inelastic demand curve for City services(which in itself is,in our opinion,a faulty assumption),a
five-fold increase in fee levels,such as those proposed for the planning department,would nevertheless
result in significant declines in demand for services.
We do not even need economic theory to see the flaws of this approach,however. We need only speak to
the business people who cannot afford to continue operations here,or the families who have moved away,
if we wish to see the effects of the City's onerous fee structure. Ask the people who have left. At our
recent Mixer Showcase,many businesspeople spoke of services they no longer provide because the City's
fee structure makes it impossible for them to recover their costs.
Ultimately,we must ask ourselves what we are buying with these ever-increasing burdens. The
answer is big government in an era of downsizing and reinventing government. In the 1990's,
we are all being asked to accomplish more with fewer resources. For some reason,city staff
seems to have forgotten this message. This is evident in the desire to replace over 50%of the
ACCREDITED
O BEROFOOMMEROE
CMAMBEY 0r COMMCn CE
p1 1.,E V11�'EO Ss,F:
positions that were eliminated during the last budget cycle,in the proposed addition of$1 million in fees
above and beyond the huge fee structure currently in place,and in the capital improvement budget that is
$5,000,000 higher than City policies followed during the recession and$3,800,000 higher than historical
levels.
The proposed budget is a tax and spend measure that will further erode the ability of any small business or
middle income family to remain in San Luis Obispo. As an anti-sustainability,business hostile measure,
it is superb. As a tool of fiscally conservative and responsible government,it is unacceptable and should
be rejected by the Council in favor of a financially viable approach.
The Chamber of Commerce would like to recommend that Council direct staff to revise their budget
figures in such a manner that capital improvement projects be reduced to historical levels or less,and that
many of the proposed 16.7 full time staff position expansions be eliminated. In this way,the City would
be able to keep fees at current levels and,hopefully,stem the tide of families and businesses that are
leaving our city.
Yours very truly,
4&-
William Thoma,President
IEETING AGENDA
DATE ' - s ITEM #
am 1=3 OBISPO BW11zS3 COALZTioa
San Lnie Obispo Chamber of Co=axoa
Sao Luis 0hiep0 Property Owners Association
San Lace Obispo Association of Realtors
Business XcWmemment Association
�aafactu ars and Distributors Association
Building Industry Association of the Central Coast
COUNCIL CDD DIR
P. 0. Box 12924, San Luis obispo,CA 9340[E3
CAO �INDIR
(805)541-7667 MACAO �IRECHIEF
gTTORNEY IV-9W DIR
CLERKADRIO p'FOLICE CHF
May 18, 1995 Maur TEAM CDIR
C FILE ttTIL DIR
Council Members
. f8'�ERSDIR
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Re: Proposed Economic Development Program Policies; ESTF
Recommendations Follow-Up
Dear Council Members:
On November 9, 1993, the City Council "conceptually accepted"
the recommendations of the Economic Strategy Task Force ( "ESTF" )
and referred them to staff for further analysis relative to actual
implementation. Although certain recommendations have been or are
being wholly or partially implemented, the City has yet to adopt
policies for its economic development program. Such policies are
essential for providing direction and substance to the program.
Enclosed is a set of representative policies we believe capture the
spirit and direction of the ESTF and this Council.
The Business Coalition urges you to officially consider
adoption of the enclosed policies. Please advise us when the
Council might expect to agendize this matter for discussion and
action.
Sincerely,
Jo n W. Belsher
P sident, San Luis Obispo Property
Owners Association
JWB:ntg
cc:
Bill Thoma Dan Lloyd Maggie Cox
President President Executive Director
San Luis Obispo Building Industry Manufacturers s
Chamber of Commerce Association of Distributors Association
the Central Coast
Pam Copeland Don Hubbard
President President R E C 1EI@ff� D
Business Improvement San Luis Obispo W
Association Association of Realtors
MAY 1 1995
CITY CLERK
SAN I I_n.G 0915z0) rn
1 -
PROPOSED SAN LUIS OBISPO CITY ECONOMIC DEVELOPMENT POLICIES
The San Luis Obispo Business Coalition
Objective of Economic Development and Business Recruitment Policies
To provide guiding economic-related principles governing future City budgeting and
legislation as well as business recruitment plans, programs and actions.
Industrial/Manufacturing Business Recruitment Policies
1. Implement the recommendations of the Economic Strategy Task Force, including
creation of an economic commission to oversee economic programs and policies.
2. Work cooperatively with local community business organizations and
county/regional agencies to promote industrial development and industrial/
manufacturing business recruitment efforts.
3. Ensure an adequate availability of industrially zoned land sufficient for appropriately
sized industrial or manufacturing facilities.
4. Encourage the local recruitment and expansion of high technology and clean non-
polluting industries by promotion of the City as a "business friendly" environment.
5. Ensure access to reasonably priced sources of local water and adequate local
sewer capacity suitable for new and expanded industrial and manufacturing
facilities.
6. Participate with local job training providers to train workers for industrial/
manufacturing prospects interested in relocating to the City.
7. Provide adequate resources, including a market plan focused on select industries,
for upper level City management staff to serve as a liaison with existing industries
and potential industrial/manufacturing prospects interested in relocating to the City.
8. Encourage outside capital investment from a diverse range of investors in local
industrial/manufacturing facilities.
9. Foster the creation of new local business by assisting in the creation of local
"Business Incubators" designed to encourage potential expansion industries.
10. Encourage and promote local industrial/manufacturing promotion activities and
events through local government funding programs.
Office and Corgorate Headquarters Recruitment Policies
1. Ensure an adequate inventory of land suitable for larger office/corporate
headquarter facilities.
2. Work cooperatively with local community based business organizations and
county/regional agencies to attract appropriately sized corporations to the City.
3. Encourage the provision of adequate housing suitable for all levels of management
and support personnel.
4. Provide appropriate land use and/or zoning incentives necessary to allow for
appropriately sized office/corporate headquarters to be located in the City.
5. Assist college business school graduates and support personnel in finding local
employment to ensure an adequate supply of managers and technical support
personnel.
6. Provide adequate local infrastructure including appropriate parking and public
transportation necessary to support new office/corporate headquarter facilities.
DL\Ig\bia\eccdw.pcy
SENT BY:WINGS WEST AIRLINES 5-19-95 18:37 ; d-► 805 781 71094 8
MEETING ._.NDA
DATE 5-20-9 ITEM #
Americanhoe
AmericanAlrlines°
May 19, 1995
COUNCIL ❑ CDD DIR
Ms. Dodie Williams CAO XFIN DIR
ACRO ❑ FIRE CHIEF
San Luis Obispo City Council Arrow�Er ❑ PW DIR
990 Palm Street CLERKKRG ❑ POLICE CHF
San Luis Obispo, CA 93401 ❑ MG rTEAM ❑ REC DIR
❑ c �ILE ❑ UTIL DIR
VIA TELEFAX 781-7109 ❑ PERSDIR
Dear Ms. Williams: '
As president of the San Luis Obispo County Visitors and Conference Bureau, I
am writing to ask for the City of San Luis Obispo's continued—and expanded—
support of the most vital segment of our area's economy: tourism.
As the director of sales and marketing for San Luis Obispo-based American
Eagle Airlines, I know that tourism promotion is a compefffive proposition. San
Luis Obispo must not fall further behind its neighbors to the north and south. If it
does, we will turn our backs on vital tourism revenue.
If all parts of our county work together to promote tourism, all parts will benefit
individually. I know that the City of San Luis Obispo supports many worthwhile
organizations and events, as does my own company. But'like a company, the
city will benefit from an effective--and properly funded—promotional effort.
1 urge you to support the recommendation of the Promotional Coordinating
Committee, and vote in favor of the VCB's full funding request for the next fiscal
year. It will be money well spent.
Sincerely,
Michael W. Rader RECEIVED
Director, Sales and Marketing
MAY 1 1495
MRI CITY CLERK
SAN LUIS OBIRPo.r,a
9peramd By Wings West AlrAnes,Inc.
1 MM%A&M PlbM A114e R•On Rn.011A.Ann 1,rio,nAlanw /:A G9AR9A11C /ORCI C41.1ftNA CAV 1011M V1_OAOq 6r1--YLIMrt•O\I
MEETING AGENDA
<3 DATE S'.t�ITEM #
COMMERCE BANK
OF SAN LUIS OBISPO uA.
May 12, 1995
KAO
UNCILD
DIRHonorable Allen Settle !R
Mayor of San Luis Obispo rrOCAOCHIEF990 Palm Street �9TfORNEIRSan Luis Obis o, CA 93401 �'CLERK'DRE CHFp ❑ MQMT TEg !R❑ R FIIRRE: Annual Funding for San Luis Obispo County'VCBDIA
Dear Mayor Settle:
This year our county has been hit by severe flooding that has all but destroyed out
tourism industry. The image of San Luis Obispo County that was flashed before the eyes
of our state and nation was one of total destruction. Now we are faced with the task of
recapturing lost business and we are shorthanded in the tools to do just that. It will take a
very strong, cohesive marketing program to compete with our neighbors in Monterey and
Santa Barbara who are consistently out-marketing us because of larger marketing
budgets.
The tools we need are provided through the San Luis Obispo County VCB. Their
programs for the past nine years have resulted in a return of up to I 1 times the amount of
funding they have received. In fact, my business is a member because these programs are
beneficial. Yet their hands are tied because of too little funding.
Tourism is the most important segment of our economy. When it is impaired, our jobs
are lost and much needed revenues to the county diminish. In fact, tourism employs over
10,000 people and generates $745.4 million annually in visitor expenditures.
The only way tourism in this county can recover from the negative publicity is through
promotion. Funding the VCB tourism promotion program with TOT is the appropriate
way to use the tax. Please vote in favor of the VCB's full funding request at the budget
hearings for next fiscal year.
Sin hely,
I
to M. Robinson MAY 1 1995
President
CITY CLERK
SAN LUIS��I�S
545 Higuera Succl 12_55 CiRlll 1 AVOIIIC 710 Mohoe liac R".11mild _ 11rML• (R I
San Luis Ohispn.CA Q11111 Arron Grande.CA 934211 Mon')Bov.CA 05142_ I'a,n Rnh1c,.
(905(541-1166 181151177-0322' (8(151 772-h 173 ISI151 2 34!/5u5
�.1
MEETING AGENDA
DATES.to-9S ITEM #
TALLEY
VINEYARDS
Lr COUNCIL �❑ CCD DIR
May 12, 1995 I /CAO FIDN DIR
CACAO ❑ FIRE CHIEF
Honorable Allen Settle O'ATTORNEY ❑ PW DIR
Mayor of San Luis Obispo d LERKIORIG ❑ POLICE CHF
Y p 91GMTTEAM ❑ REC DIR
990 Palm Street . ❑ c FILE ❑ unL DIR
San Luis Obispo, CA 93401 ry ❑ PERS D1R
Re: Annual Funding for San Luis Obispo County VCB
Dear Mr. Settle,
This year our county has been hit by severe flooding that has all but destroyed our tourism
industry. The image of San Luis Obispo County that was flashed before the eyes of our state and
nation was one of total destruction. Now we are faced with the task of recapturing lost business
and we are shorthanded in the tools to do just that. It will take a very strong,cohesive marketing
program to compete with our neighbors in Monterey and Santa Barbara who are consistently out-
marketing us because of larger marketing budgets.
The tools we need are provided through the San Luis Obispo County VCB. Their programs for
the past nine years have resulted in a return of up to 11 times the amount of funding they have
received. In fact, my business is a member because these programs are beneficial. Yet their hands
are tied because of too little funding.
Tourism is the most important segment of our economy. When it is impaired,our jobs are lost and
much needed revenues to the county diminish. In fact, tourism employs over 10,000 people and
generates$745.4 million annually in visitor expenditures.
The only way tourism in this county can recover from the negative publicity is through promotion.
Funding the VCB tourism promotion program with TOT is the appropriate way to use the tax.
Please vote in favor of the VCB's full funding request at the budget hearings for next fiscal year.
Since 1 ,
I
Brian alley
Owner
RECEIVED
' MAY 1 " 1995
CITY CLERK
SAKI
3031 LOPEZ DRIVE • ARROYO GRANDE,CALIFORNIA 93420 • FAX (805)489-0996 PHONE(805)489-0446