Loading...
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. L-� 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