HomeMy WebLinkAbout06/20/1995, 1F - ADOPTION OF 1995-97 FINANCIAL PLAN I�IIiIII�N�IWllllf VIII �MIIIIIIIII �'7 r MEETING DATE:
city o san Luis os�spo 6- 0-9
nia; COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: John Dunn, City Administrative Office�'A
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Prepared By: Bill Statler, Director of Finance
SUBJECT: ADOPTION OF 1995-97 FINANCIAL PLAN �V�,'
CAO RECOMMENDATION
Adopt a resolution approving the 1995-97 Financial Plan and 1995-96 Budget.
DISCUSSION
At the June 6 and 13 budget hearings, the following changes affecting the General Fund in the
Preliminary Financial Plan were approved by the Council:
Reductions to Fund Balance
1995-96 1996-97 Total
Reduce revenues per Council user fee policy review 219,000 289,200 508,200
Add volunteer tree planting program 17,000 17,000 34,000
TOTAL $236,000 $306,200 $542,200
Increases to Fund Balance
1995-96 1996-97 Total
Ca`ital[m rovemeat.Plao,Pro eels '
Reduce portable gymnasium 15,000 15,000
Reduce street reconstruction & resurfacing 50,000 20,000 70,000
Defer Santa Rosa street bridge 89,000 89,000
Defer neighborhood park improvements 50,000 50,000 100,000
Defer neighborhood traffic mgt improvements 80,000 80,000
Use grant funds for Montalban overcrossing 20,000 20,000
Defer public art in-lieu 18,400 11,200 29,600
Ope�ayng Programs
Defer conservation element update to 1997-99 73,900 73,900
Defer 10 year financial mgt plan update to 1997-99 45,000 45,000
Reduce number of SLONET accounts 6,300 6,300 12,600
TOTAL $358,600 $176,500 $535,100
As reflected above, these changes have had no significant affect on projected ending General Fund
balance: reductions to fund balance of $542,200 have been offset by increases of $535,100.
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COUNCIL AGENDA REPORT
Other Preliminary Financial Plan Changes
Workers compensation and liability insurance
On June 14, 1995, the City received our final premium costs for 1995-96 for workers compensation
and general liability. As summarized below, this results in an annual savings of$140,200 (all funds
combined) from initial Preliminary Financial Plan estimates:
Preliminary Final Variance
Workers Compensation 898,400 797,400 101,000
General Liability 679,600 640,400 39,200
Total $1,578,000 $1,437,800 $140,200
As noted in the Budget Message, this reflects a significant reduction from 1994-95, especially in the
workers compensation area; under current rates, workers compensation costs for 1995-96 would have
been $1.26 million compared with the $797,400 finalized cost.
The General Fund's portion of this savings is $119,800. There are several options available to the
Council in responding to these decreased insurance costs:
■ Make no further adjustments - let the savings go to fund balance
■ Consider changes in capital improvement plan (CIP) project or operating programs
Given the recent adoption of the Parks & Recreation Element/Master Plan and the need to make a
good start in beginning implementation, it is recommended that the funding for neighborhood park
improvements be restored in the amount of$50,000 annually for 1995-97 ($100,000 over the next two
years). It is then recommended that the balance of the insurance savings ($19,800 in the General Fund
and $21,300 in all other funds) go to fund balance.
Enterprise fund CIP projects
In response to the Council's rate-setting actions for the water and sewer funds, Utilities has modified
their CIP project requests to meet available revenues. The following is a summary of these changes
which are more fully described in a separate agenda report:
■ Reduce design costs for the water reuse project by $100,000 in 1995-96 and construction costs
by $1.9 million in 1996-97.
■ Reduce sewer collection improvements by $150,000 in 1995-96 and by $30,000 in 1996-97.
Resulting Financial Plan Appropriations
Combining the changes discussed above results in recommended 1995-97 Financial Plan appropriations
of $45.4 million in 1995-96 and $53.6 million in 1996-97 summarized as follows:
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Expenditures by Type
1995-96 1996-97
Operating 32,119,600 32,233,800
Capital Outlay 8,352,100 16,107,000
Debt Service 5,007,000 5,279,000
TOTAL $45,478,700 $53,619,800
Expenditures by Funding Source
1995-96 1996-97
Governmental Funds ' 26,799,200 26,987,400
Enterprise Funds 18,679,500 26,632,400
TOTAL $45,478,700 $53,619,800
• Includes General, Special Revenue, Capital Outlay and Debt Service Funds
In implementing the approved 1995-97 Financial Plan, the following changes will be reflected in the
final document:
Policies
■ User fee cost recovery policies will be amended to reflect Council action on planning and
City/County Library rental fees.
■ Capital improvement management policies will be amended to reflect Council deferral of the
public art in-lieu component of the City's public art policy.
Major City Goals
■ Circulation element implementation will reflect deferring the start of constructing neighborhood
traffic management improvements to 1996-97.
■ Natural resource protection will reflect the deferral of the conservation element update.
■ Long-term fiscal health will reflect the deferral of the ten-year comprehensive financial
management plan update.
Revenues
Revenue projections will be modified to reflect the changes in user fee cost recovery polices in the
General Fund, grant funding for the Montalban bridge overcrossing in the Capital Outlay Fund,
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i COUNCIL AGENDA REPORT
deferral of grant revenue in the Capital Outlay Fund related to the deferral of the Santa Rosa Bridge
project, and the outcome of Council rate-setting in the water and sewer funds.
Operating Programs
Operating budgets will be adjusted to reflect the deferrals or reductions noted above for the following:.
■ Conservation element update
■ Ten year comprehensive financial management plan update
■ City SLONET accounts
■ Workers compensation and general liability insurance costs
CIP Projects
CIP project budgets will be adjusted to reflect the deferrals or reductions noted above for the
following:
■ Portable gymnasium
■ Street reconstruction and resurfacing
■ Santa Rosa bridge replacement
■ Neighborhood traffic management
■ Public art in-lieu
■ Water reuse project design and construction
■ Sewer collection system improvements
As discussed above, we are recommending that funding be maintained at $100,000 annually for 1995-
97 for neighborhood park improvements in light of reduced insurance costs.
SUMMARY
Since December of 1994, the Council has held thirteen workshops and hearings leading to adoption
of the 1995-97 Financial Plan. These have intensively covered a wide range of issues, from Council
goal-setting to cost accounting studies to parks & recreation programming and facility needs.
While this has been a long and time-intensive process, we believe that it has been a worthwhile one
in setting forth the major work programs for the City over the next two years, and in achieving the
fundamental purpose of the Financial Plan: to link what we want to accomplish for the community
with the resources necessary for their accomplishment.
ATTACHMENT
Resolution approving the 1995-97 Financial Plan and appropriating funds for the 1995-96 fiscal year
i
RESOLUTION NO. (1995 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING THE 1995-97 FINANCIAL PLAN AND
APPROPRIATING FUNDS FOR THE 1995-96 FISCAL YEAR
WHEREAS, the City Administrative Officer has submitted the 1995-97 Financial
Plan to Council for their review and consideration in accordance with budget policies and
objectives established by the Council; and
WHEREAS, the 1995-97 Financial Plan is based upon public comment and direction
of the Council after scheduled budget study sessions and public hearings,
NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo
that the 1995-97 Finincial Plan is hereby approved and that the operating, debt service and
capital outlay budget for the fiscal year beginning July 1, 1995 and ending June 30, 1996 is
hereby adopted as follows:
Operating programs $32,1199600
Debt service 5,007,000
Capital outlay 8,352,100
TOTAL $45,478,700
On motion of ,seconded by
and on the following roll call vote;
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of June, 1995.
Mayor Allen Settle
ATTEST:
City Clerk
APPROVED:
City At orney
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165 Grand Avenue
San Luis Obispo, CA 93405
June 16, 1995 COUNCIL ❑ CDD DIR
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Members of the San Luis Obispo City Council ❑ c R . FILE ❑ urlL DIR
Mayor Allen Settle -- ❑ PERSDIR
Bill Roalman
Dodie Williams
Kathy Smith
Dave Romero
Re: Traffic Signal at Grand and Slack
Ladies and Gentlemen:
1 am president of the Pacheco PTA and a concerned parent in the neighborhood.
It was recently brought to my attention that Mayor Settle is proposing that a
traffic signal be installed at the comer of Grand Avenue and Slack Street. This
matter will be presented to the council on Tuesday, June 20th. As I am sure you
are aware, Pacheco Elementary School is located on the comer of Grand and
Slack.
In the not too recent past, parents at Pacheco School were instrumental in
making that intersection and the entrance to the school a safer place for the
boys and girls of Pacheco. Stop signs were installed at the intersection, making
it a four-way stop. The crosswalk in front of the school was reworked so it came
straight across Grand Avenue, instead of at an angle. As a result, the safety of
the kids is much improved. Cars entering and leaving Cal Poly have to stop
when entering and leaving the campus, which slows traffic significantly in front of
Pacheco. This is especially important between 8:00 a.m. and 8:30 a.m., when
the boys and girls are arriving at school, and the Cal Poly students are also
trying to get to class.
It is obvious to me that a traffic light at the intersection will change the traffic
speed significantly. When the light is green, Cal Poly students will have no
reason to slow down when entering or leaving the campus. They will be
traveling at speeds of 30.40 m.p.h. on Grand Avenue, even faster when leaving
Cal Poly and traveling downhill on Grand Avenue. I '' t'., g yay .a w+
AN N + ' 1995
.r•IIv C,__rx
Members of the San Luis Obispo City Council
Page 2
1 would ask that each council member take a moment to visit the intersection of
Grand Avenue and Slack Street. The four-way stop signs are working
beautifully. Apparently in the morning Cal Poly students are backed up at the
stop sign waiting to enter campus, however traffic moves smoothly as cars "stop
and go" through the intersection. That is a very short period of time. The
majority of the day, traffic at that intersection is light. I travel Grand Avenue daily
to my residence and there are many times that there is no traffic at that
intersection. It seems to me that a traffic signal would be a nuisance.
It seems that to spend $100,000 to put a traffic signal in is a waste. More
importantly, it puts the 300 boys and girls at Pacheco Elementary School at risk.
I ask that you carefully consider the risks involved, before you make your
decision on Tuesday night. Thank you.
Sincerely,
Ithyolss
PTA President
cc: Jim Miller, Pacheco Elementary School Principal
Karen Brock, PTA Vice-President
Marianne Culver, PTA Vice-President
Nan Van Sandt, PTA Vice-President
Connie Rutledge, PTA Secretary
Sue Quanstrom, PTA Treasurer
Michael and Trudy Hodge, neighborhood parents
Jaime and Jana Bustos, neighborhood parents
Jim and Claudia Grant, neighborhood parents
Rick and Teresa Collins, neighborhood parents
Bill and Gina McKee, neighborhood parents
Mike and Cindy Stiles, concerned parents
June 15, 1995 MEETING AGEND DATE ITEM # e=
MEMORANDUM
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m:
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TO: Council Colleagues
FROM: Dave Romero
SUBJECT: AIRPORT ANNEXATION
It is my opinion that a great deal of the work of the newly approved'natural resources and
economic development managers will relate to the airport area.. With this in mind, I believe
it is timely for the City to reconsider annexation of this area.
I, therefore, request that Council direct staff to prepare a report to be considered at a
Council meeting outlining past past history, procedures and problems dealing with the
annexation of this area.
DR:ss
c: John Dunn
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