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HomeMy WebLinkAbout01/12/1999, 9 - 1999-01 FINANCIAL PLAN CALENDAR1999 -oi financial plan CaLenbaR October 8, 1998 Brief advisory body chairs on their role in the process at quarterly Mayor /advisory body chair meeting. October 20, 1998 Council approves conceptual Financial Plan process and calendar. November 1998 Send letters requesting participation in goal- setting process from advisory bodies, community groups and interested individuals. November 1998 Begin preparing five year General Fund fiscal forecast December 8., 1998 1 • . Council reviews. status of major City goals and revises action plans as Bold Italics — Council Meeting Dates needed, finalizes plans for goal- setting process; considers Financial Plan organization and policies; and considers annual financial report and fiscal results for 1997 -98. January 4, 1999 • Receive written comments from advisory bodies, community groups and interested individuals. January 12,1999 • Council holds community workshop. January 15, 1999 • Distribute five year fiscal forecast and community workshop results to Council. Jamrary 27, 1999 • Distribute consolidated Council member goals. January 30, 1999 • Council holds goal - setting workshop: reviews status of major City goals; discusses candidate goals presented at January 12 workshop; considers results of fiscal forecast; discusses Council member. goals; prioritizes and sets major City goals. February 4 1999 • Council finalizes goals and priorities. February 10, 1999 • Issue budget instructions; departments begin preparing budgets. February 23,1999 • Council considers midyear budget review. March to May, 1999 • Departments submit budget requests. • Budget review team analyzes requests and meets with departments; CAO finalizes budget recommendations. April 6y 1999 Council approves detailed goal work: programs. May 10, 1999 • Issue preliminary budget May 17,19, 2.�, 1999 • Council holds special evening budget workshops: — May 17: Financial Plan overview and General Fund operating pmgrmms- - May 19: General Fund CIP projects. — May 25: Enterprise Fund programs, projects and rates. May 26, 1999 • Planning Commission reviews CIP for General Plan consistency. June 1,15,1999 • Council holds continued hearings; adopts budget Bold Italics — Council Meeting Dates city of san tuts ompo Budget Process Overview The City of San Luis Obispo has received national recognition for its use of a two-year Financial Plan and budgetary process that emphasizes long-range planning and effective program management Significant features of the City's two-year Financial Plan include the integration of Council goal- setting into the budgetary process and the extensive use of formal policies and measurable objectives. The Financial Plan includes operating budgets for two years and a capital improvement plan (ClP) covering four years. While appropriations continue to be made annually under this process, the Financial Plan is the foundation for preparing the budget in the second year. Additionally, unexpended operating appropriations from the first year may be carried over for specific purposes into the second year with the approval of the City Administrator (CAO). Purpose of the City's Two -Year Financial Plan The fimdammftl purpose of the (Sty's Financial Plan is to link what we want to accomplish for the community with the resources necessary to do so. The City's Financial Plan process does this by: clearly setting major City goals and other importaixt objectives; establishing reasonable tonefames and organizational responsibility for achieving them; and allocating resources for programs and projects. Major City Goals Lial®g important objectives with necessary resources requires a process that identifies key goals at the very beginning of budget preparation. Setting goals and ptiaritiies should drive the budget process, not follow it For this reason, the City begins each two-year Financial Plan process with a series of in -depth goal setting workshops where Council members invite candidate goals from community groups, Council advisory bodies and interested mdividuals; review the City's fiscal outlook for the next five years and the stars of prior goals; present their individual goals to fellow Council members; and then set and prioritize major goals and work programs for the next two year;. City staff then prepare the Preliminary Financial Plan based on the Council's policy guidance. Financial Plan Policies Formally articulated budget and fiscal policies provide the foundation for preparing and implementing the Financial Plan while assuring the City's long -term fiscal health Included in the Financial Plan itself; these policies cover a broad range of areas such as user fee cost recovery goals, enterprise find rites, investments, capital improvement management, debt management, capital financing, find balance and reserves, human resource management, and productivity. Preparation and Review Process Under the City Charter, the CAO is responsible for preparing the budget and submitting it to the Council for approval. Although specific steps will vary from year to year, the following is an overview of the general approach used under the . Clty's two-year budgetary process: • First Year. As noted above, the Financial Plan process begins with a Council goal- setting workshop to determine major objectives for the next two years. The results of Council goal- setting are incorporated into the budget instructions issued to the operating departments, who are responsible for submitting initial budget proposals. After these proposals are comprehensively reviewed and a detailed financial forecast is prepared, the CAO issues the Preliminary Financial Plan for public comment A series of workshops and public hearings are then held leading to Council adoption of the Financial Plan by June 30. • Second Year. Before the beginning of the second year of the two-year cycle, the Council reviews progress during the first year, makes adjustments as necessary, and approves appropriations for the second fiscal year " Mid Year RepwK% The Council fomnally reviews the (Styx's financial condition and amends appropriations, if necessary, sir months after the beginning of each fiscal 3'ear- • Lrfeint Fura>tewl and Projed Stators Reporft On- line access to "up-to -date" financial information is provided to staff throughout the organh:ation. Additionally, comprehensive financial reports are prepared monthly to monitor the City's fiscal condition, and more formal reports are issued to the Council on a quarterly basis. The status of major program objectives — including CIP projects — is also periodically reported to the Council on a formal basis. Adminisbaflon As set fortis in the City (barter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The CAO has the authority to make administrative adjustments to the budget as long. as those changes will not have a significant policy impact nor affect budgeted year -end fund balances. ■ p 2 POLICIES AND OBJECTNES BUDGET AND FISCAL POLICIES FINANCIAL PLAN PURPOSE AND ORGANIZATION . A. Financial Plan Objectives. Through its financial plan, the City will link resources with results by: 1. Identifying community needs for essential services. 2. Organizmg the programs required to provide these essential services. 3. Establishing program policies and goals which define the nature and level of program services required. 4. Identifying activities performed in delivering program services. 5. Proposing objectives for improving the delivery of program services. 6. Identifying and appropriating the resources required to perform program activities and accomplish program objectives. 7. Setting standards to measure and evaluate the: a. Output of program activities. b. Accomplishment of program objectives. c. Expenditure of program appropriations. B. Two-Year Budget Following the CiWs favorable experience over the past sixteen years, the City will continue using a two-year financial plan, emphasizing long-range planning and effective program management. The benefits identified when the City's first two-year plan was prepared for 1983 -85 continue to be realized: 1. Reinforcing the importance of long -range planning in managing the City's fiscal affairs. 2. Concentrating on developing and budgeting for the accomplishment of significant objectives. 3. Establishing realistic timefames for achieving objectives. 4. Creating a pro-active budget that provides for stable operations and assures the City's long -term fiscal health. 5. Promoting more orderly spending Patterns. 6. Reducing the amount of time and resources allocated to preparing annual budgets. C. Measurable Objectives. The two-year financial plan will establish measurable program objectives and allow reasonable time to accomplish those objectives. D. Second Year Budget. Before the beginning of the second year of the two-year cycle, the Council will review progress during the first year and approve appropriations for,the second fiscal year. E. Operating Carryover. Operating program appropriations not spent during the first fiscal year may be carried over for specific purposes into the second fiscal year with the approval of the City Administrative Officer (CAO). F. Goal Status Reports. The status of major program objectives will be formally reported to the Council on an ongoing, periodic basis. G. Mid -Year Budget Reviews. The Council will formally review the City's fiscal condition, and amend appropriations if necessary, six months after the beginning of each fiscal year. Ii. Balanced Budget The City will maintain a balanced budget over the two year period of the Financial Plan. This means that 1. Operating revenues must fully cover operating expenditures, including debt service. 2. Ending fiord balance (or working capital in the enterprise fiords) must meet minimum policy levels. For the general and enterprise funds, this level has been established at 20% of operating expenditures. -1- 9-3 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES Under this policy, it is allowable for total expenditures to exceed revenues in a given year, however, in this situation, beginning fund balance can only be used to fimd capital improvement plan projects, or other "one- time," non - recurring expenditures. FINANCIAL REPORTING AND BUDGET ADMIIVISTRATION A- Annual 'Reporting. The City will prepare annual financial statements as follows: 1. In accordance with Charter requirements, the City will contract for an annual audit by a qualified independent certified public accountant The City will strive for an unqualified auditors' opinion. A. Diversified and Stable Base. The City will seek to maintain a diversified and stable revenue base to protect it from short-term fluctuations in any one revenue source. B. Long -Range Focus. To emphasize and facilitate long -range financial planning, the City will maintain current projections of revenues for the succeeding five years. C. Current Revenues for Current Uses. The City will make all current expenditures with current revenues, avoiding procedures that balance current budgets by postponing needed expenditures, accruing firture revenues, or rolling over short-term debt 2. The City will use generally accepted D accounting principles in preparing its anmral financial statements, and will strive to meet the requirements of the GFOA's Award for Excellence in Financial Reporting program. 3. The City will issue audited financial statements within 180 days after year -end. B. Interim Reporting. The City will prepare and issue timely interim reports on the City's fiscal status to the Council and staff. This includes: on -line access to the City's financial management system by City stn$ monthly reports to program managers; more formal quarterly reports to the Council and Department Beads; mid -year budget reviews; and interim annual reports. C. Budget Administration. As set forth in the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The CAO has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year -end find balances. -2- Inter•fund Transfers and Loans. In order to achieve important public policy goals, the City has established various special revenue, capital project, debt service and enterprise finds to account for revenues whose use should be restricted to certain activities. Accordingly, each find exists as a separate financing entity from other finds, with its own revenue sources, expenditures and find equity. Any transfers between finds for operating purposes are clearly set forth in the Financial Plan, and can only be made by the Director of Finance in accordance with the adopted budget These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from mterfund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year. In summary, interhnd transfers result in a change in fiord equity, interfimd borrowings do not, as the intent is to repay in the loan in the near term. From time - to-time, interfimd borrowings may be appropriate; however, these are subject to the following criteria in ensuring that the fiduciary purpose of the find is met: 9 --�K POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES 1. The Director of Finance is authorized to approve temporary interfimd borrowings for cash flow. purposes whenever the cash shortfall is expected to be resolved within 45 days. The most common use of interfimd borrowing under this circumstance is for grant programs like the Community Development Block Grant, where costs are incurred before drawdowns are initiated and received. However, receipt of fiords are typically received shortly after the request for fimds has been made. 2. Any other mterfinid borrowings for cash flow or other purposes require case -by -case approval by the Council. 3. Any transfers between fiords where reimbursement is not expected by within one fiscal year shall not be recorded as mterfimd borrowings; they shall be recorded as mterfimd operating transfers that affect equity by moving financial resources from one fimd to another. USER FEE COST RECOVERY GOALS A. Ongoing Review Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes in the cost -of - living as well as changes in methods or levels of service delivery. B. User Fee Cost Recovery Levels In setting user fees and cost recovery levels, the following factors will be considered: Community -Wide Versus Special Benefit The level of user fee cost recovery should consider the community-wide versus special service nature of the program or activity. The use of general purpose revenues is appropriate for community -wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups. -3- 2. Service Recipient Versus Service Driver. After considering community -wide versus special benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary. However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate. 3. Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At fall cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overly- stimulated by artificially low prices. Conversely, high levels of cost recovery will negatively impact on the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low income groups. 4. Feasibility of Collection and Recovery. Although it may be determined that a high level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source. C. Factors Which Favor Low Cost Recovery Levels Very low cost recovery levels are appropriate under the following circumstances: 91—.57' S POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES 1. There is no intended relationship between the amount paid and the benefit received Almost all "social service" programs fall into this category as it is expected that one group will subsidize another. 2. Collecting fees is not cost - effective or will significantly impact the efficient delivery of the service. 3. There is no intent to limit the use of (or entitlement to) the service. Again, most "social service" programs fit into this category as well as many public safety (police and fire) emergency response services. Historically, access to neighborhood and community parks would also fit into this category. 4. The service is non - recurring, generally delivered on a "peak demand" or emergency basis, cannot reasonably be planned for on an individual basis, and is not readily available from a private sector source. Many public safety services also fall into this category. 5. Collecting fees would discourage compliance with regulatory requirements and adherence is primarily self- identified, and as such, failure to comply would not be readily detected by the City. Many small - scale licenses and permits might fall into this category. D. Factors Which Favor High Cost Recovery Levels The use of service charges as a major source of funding service levels is especially appropriate under the following circumstances: 1. The service is similar to services provided through the private sector. 2. Other private or public sector alternatives could or do exist for the delivery of the service. -4- 3. For equity or demand management purposes, it is intended that there be a direct relationship between the amount paid and the level and cost of the service received. 4. The use of the service is specifically discouraged. Police responses to disturbances or false alarms might fall into this category. 5. The service is regulatory in nature and voluntary compliance is not expected to be the primary method of detecting failure to meet regulatory requirements. Building permit, plan checks, and subdivision review fees for large projects would fall into this category. E. General Concepts Regarding the Use of Service Charges The following general concepts will be used in developing and implementing service charges: 1. Revenues should not exceed the reasonable cost of providing the service. 2. Cost recovery goals should be based on the total cost of delivering the service, including direct costs, departmental administration costs, and organization wide support costs such as accounting, personnel, data processing, vehicle maintenance, and insurance. 3. The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection. 4. Rate structures should be sensitive to the "market" for similar services as well as to smaller, infrequent users of the service. 5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above. 3P4 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES F. Low Cost-Recovery Services 3. Cost recovery goals for specific recreation activities are set as follows: Based on the criteria discussed above, the following types of services should have very ugh Range Cost Recovery Activities low cost recovery goals. In selected (67% to 80%) circumstances, there may be specific activities a. Classes (Adult & Youth) 80% within the broad scope of services provided that b. Day care services 75% should have user charges associated with them. c. Adult athletics (volleyball, However, the primary source of finding for the basketball, softball, operation as a whole should be general purpose lap swim) 67% revenues, not user fees. d. Facility rentals (Jack House, 1. Delivering public safety emergency other in -door facilities except the City/County Library) 67% response services such as police patrol services and fire won' Mid -Range Cost Recovery Activities 2. Maintaining and developing public facilities (30% to 50 %) that are provided on a uniform, community- e. City/County Library wide basis such as streets, parks, and room rentals 50% general purpose buildings. f. Special events (triathlon, other City- sponsored 3. Providing social service programs and special events) 50% economic development activities. g. Youth track 40% h. Minor league baseball 30% G. Recreation Programs i. Youth basketball 30% j. Swim lessons 30% The following cost recovery policies apply to k Outdoor facility and the City's recreation programs: equipment rentals 30% 1. Cost recovery for activities directed to Low -Range Cast Recovery Activities adults should be relatively high. (0 to 25016) 2. Cost recovery for activities directed to 1. Public swim in swim classes 25% 15% youth and seniors should be relatively low. n Community garden 10% In those circumstances where services are o. Youth STAR 0% similar to those provided in the private p' Teen services 0% - sector, cost recovery levels should be q. Senior services 0% higher. Although ability to pay may not be a 4. For cost recovery activities of less than concern for all youth and senior 100%, there should be a differential in rates participants, these are desired program between residents and non - residents. activities, and the cost of determining need 5. Charges will be assessed for use of rooms, may be greater than the cost of providing a pools, gymnasiums, ball fields, special -use uniform service fee structure to all areas, and recreation equipment for participants. Further, there is a community- activities not sponsored or co- sponsored by wide benefit in encouraging high - levels of the City. Such charges will generally participation in youth and senior recreation activities regardless of financial status. P-7 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES 7 conform to the fee guidelines described above. A vendor charge of at least 10 percent of gross income will be assessed from individuals or organizations using City facilities for money - making activities. The Parks & Recreation Department will consider waiving fees only when the City Administrative Officer determines in writing that an undue hardship exists. H. Development Review Programs 1. Services provided under this category include: a. Planning (planned development permits, tentative tract and parcel maps, rezonings, general plan amendments, variances, use permits). b. Building and safety (building permits, structural plan checks, inspections). c. Engineering (public improvement plan checks, inspections, subdivision requirements, encroachments). d. Fire plan check. 2. Cost recovery for these services should generally be very high. In most instances, the City's cost recovery goal should be 100 0/a. Exceptions to this standard include planning services, as this review process is clearly. intended to serve the broader community as well as the applicant. In this case, the general level of cost recovery is set at 25 %, except for appeals, where no fee is charged. 3. However, in charging high cost recovery levels, the City needs to clearly establish and articulate standards for its performance in reviewing developer applications to ensue that there is "value for cost ". I. Comparability With Other Communities 1. Surveying the comparability of the City's fees to other communities provides useful background information in setting fees for several reasons: a. They reflect the "market" for these fees and can assist in assessing the reasonableness of San Luis Obispo's fees. b. If prudently analyzed, they can serve as a benchmark for how cost - effectively San Luis Obispo provides its services. 2. However, fee surveys should never be the sole or primary criteria in setting City fees as there are many factors that affect how and why other communities have set their fees at their levels. For example: a. What level of cost recovery is their fee intended to achieve compared with our cost recovery objectives? b. What costs have been considered in computing the fees? c. When was the last time that their fees were comprehensively evaluated? d. What level of service do they provide compared with our service or performance standards? e. Is their rate structure significantly different than ours and what is it intended to achieve? These can be very difficult questions to address in fairly evaluating fees among different communities. As such, the comparability of our fees to other communities should be one factor among many that is considered in setting City fees. 9 -8 -6- POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES ENTERPRISE FUND FEES AND RATES 2. Property tax in -lieu fees are established under the same methodology used in assessing property tax m -lieu fees to the A Water, Sewer and Parking. The City will set Housing Authority under our 1976 fees and rates at levels which fully cover the agreement with them. Under this approach, total direct and indirect costs — including water fiord property tax in lieu charges are operations, capital outlay, and debt service — of about $29,000 annually, and grow by 2% the following enterprise programs: water, sewer per year as allowed under Proposition 13. and parking. REVENUE DISTRIBUTION B. Golf Golf program fees and rates should fully cover direct operating costs. Because of the nine -hole nature of the golf course with its focus The Council recognizes that generally accepted on youth and seniors, subsidies from the accounting principles for state and local General Fund to cover indirect costs and capital governments discourage the "earmarking" of improvements may be considered by the General Fund revenues, and accordingly, the Council as part of the Financial Plan process. practice of designating General Fund revenues for specific programs should be minimizers in the City's C. Transit As set forth in the Short-Range Transit management of its fiscal affairs. Approval of the Plan, the City will strive to cover at least thirty following revenue distribution policies does not percent of transit operating costs with fare prevent the Council from directing General Fund revenues. resources to other functions and programs as necessary. D. Ongoing Rate Review. The City will review and adjust enterprise fees and rate structures as A. Property Taxes. With the passage of required to ensure that they remain appropriate Proposition 13 on June 6, 1978, California cities and equitable. no longer can set their own property tax rates. In addition to limiting annual increases in E. Franchise and In -Lien Fees. In accordance market value, placing a ceiling on voter with long- standing practices, City will truest the approved indebtedness, and redefining assessed water fimd m the same manner as if it was valuations, Proposition 13 established a privately owned and operated In addition to maximum county -wide levy for general revenue setting rates at levels necessary to fully cover purposes of 1% of market value. Under the cost of providing water service, this means subsequent state legislation which adopted assessing reasonable franchise and property tax formulas for the distrrution of this county wide in-lieu fees. levy, the City now receives a percentage of total property tax revenues collected countywide as - 1. Franchise fees are based on the state -wide determined by the County Auditor - Controller. standard for public utilities like electricity and gas: 2% of gross revenues from Until November of 1996, the City had operations. The appropriateness of charging provisions in its Charter that were in conflict the water fund a reasonable franchise fee for with Proposition 13 relating to the setting of the use of City streets is further supported property tax revenues between various fiords. by the results of recent studies in Arizona, For several years following the passage of California, Ohio and Vermont which Proposition 13, the City made property tax concluded that the leading cause for street allocations between fiords on a policy basis that resurfacing and reconstruction is street cuts were generally in proportion to those in place and trenching for utilities. before Proposition 13. Because these were general purpose revenues, this practice was -7- &"-9 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES discontinued in 1992 -93. With the adoption of a series of technical revisions to the City's charter in November of 1996, this conflict no longer exists. B. Gasoline Tax Subventions. All gasoline tax revenues (which are restricted by the State for street - related purposes) will be used for maintenance activities. Since the City's total expenditures for gas tax eligible programs and projects are much greater than this revenue source, operating transfers will be made from the gas . tax fiord to the General Fund for this purpose. This approach significantly reduces the accounting efforts required in meeting State reporting requirements. C. Transportation Development Act (TDA) Revenues. All TDA revenues will be allocated to alternative transportation programs, including regional and municipal transit systems, bikeway improvements, and other programs or projects designed to reduce automobile usage. Because TDA revenues will not be allocated for street purposes, it is expected that alternative transportation programs - in conjunction with other state or federal grants for this purpose - will be self - supporting from TDA revenues. D. Transient Occupancy Taxes (TOT). Twenty percent - (20 %) of TOT revenues should be allocated for cultural activities, community promotion, and economic development activities; remaining TOT revenues (80 %) should be unrestricted within the General Fund and used in finding programs or projects that benefit our residents as well as visitors. E. Parking Fines. All parking fine revenues will be allocated to the parking fiord. F. Mission Plaza Improvements. A minimums of $50,000 annually shall be designated in the capital outlay fimd for Mission Plaza improvements and expansions. A. Responsthility. Investments and cash management will be the responsibility of the City Treasurer or designee. B. Investment Objective. The City's primary investment objective is to achieve a reasonable rate of return while minimizing the potential for capital losses arising from market changes or issuer default. Accordingly, the following factors will be considered in priority order in determining individual investment placements: 1. Safety 2. Liquidity 3. Yield C. Tax and Revenue Anticipation Notes —lot for Investment Purposes. There is an appropriate role for tax and revenue anticipation rates (TRANS) in meeting legitimate short-term cash needs within the fiscal year. However, many agencies issue TRANS as a routine business practice, not solely for cash flow purposes, but to capitalize on the favorable difference between the interest cost of issuing TRANS as a tax - preferred security and the interest yields on them if re- invested at full market rates. As part of its cash flow management and investment strategy, the City will only issue TRANS or other forms of short-term debt if necessary to meet demonstrated cash flow needs; TRANS or any other form of short-term debt financing will not be issued for investment purposes. As long as the City maintains its current policy of maintaining fimd/working capital balances that are 20% of operating expenditures, it is unlikely that the City would need to issue TRANS for cash flow purposes except in very unusual circumstances. D. Selecting Maturity Dates. The City will strive to keep all idle cash balances fully invested through daily projections of cash flow requirements. To avoid forced liquidations and /D POLICIES AND OBJECTIVES ZUDGET AND FISCAL POLICIES losses of investment earnings, cash flow and firtu a requirements will be the primary consideration when selecting maturities. E. Diversification. As the market and the City's investment portfolio change, care will be taken to maintain a healthy balance of investment types and maturities. F. Authorized Investments. The City will invest only in those instruments authorized by the California Government Code Section 53601. The City will not invest in stock, will not speculate, and will not deal in fuUaes or options. The investment market is highly volatile and continually offers new and creative opportunities for enhancing interest earnings. Accordingly, the . City will thoroughly investigate any new investment vehicles prior to committing City fiords to them. i. Authorized Institutions. Current financial statements will be maintained for each institution in which cash is invested Investments will be limited to 20 percent of the total net worth of any institution and may be reduced finrther or refused altogether if an instihition's financial situation becomes unhealthy. H. Consolidated Portfolio. In order to ma :imi�P yields from its overall portfolio, the City will consolidate cash balances from all fiords for investment purposes, and will allocate investment earnings to each fund in accordance with generally accepted accounting principles. I. Safekeeping. Ownership of the City's investment securities will be protected through third -party custodial safekeeping. J. Reporting. The City Treasuer will develop and maintain a comprehensive, well documented investment reporting system which will comply with Government Code Section 53607. This system will provide the Council and Department Heads with appropriate investment performance information. K. Investment Management Plan. The City Treasurer will develop and maintain an Investment Management Plan which addresses the City's administration of its portfolio, including investment strategies, practices, and procedures. APPROPRIATIONS LUUFATION A- The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article JM of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit B. The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least 10 days before Council consideration of a resolution to adopt an appropriations limit The Council will generally consider this resolution in connection with final approval of the budget C. The City will strive to develop revenue sources, both new and existing, which are considered non -tax proceeds in calculating . its appropriations subject to limitation. D. The City will. annually review user fees and charges and report to the Council the amount of program subsidy, if arty, that is being provided by the General or Enterprise Funds. E. The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article J[llB of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council. F. The City shall seek a vote of the public to amend its appropriation limit at such time that tax proceeds are in excess of allowable limits. -9- 9"// POLICIES AND OBJECTIVES BUDGET AND FMCAL POLICIES FUND BALANCE DESIGNATIONS AND RESERVES A Minimum Fund and Working Capital Balances. The City will maintain find or worldng capital balances of at least 20% of operating expenditures in the General Fund and water, sewer and parking enterprise fiords. This is considered the minimum level necessary to maintain the City's credit worthiness and to adequately provide for: years which are carried forward into the new year, debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles. CAPITAL IMMOVEMENT MANAGEMENT I� 1. Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy. 2. Contingencies for unseen operating or capital needs. B. 3. Cash flow requirements. B. Equipment Replacement. For General Fund assets, the City will establish and maintain an Equipment Replacement Fund to provide for the timely replacement of vehicles and capital equipment with an individual replacement cost of $15,000 or more. The City will maintain a minimum fimd balance in the Equipment Replacement Fund of at least 20% of the original purchase cost of the items accounted for in this find. The annual contribution to this fimd will generally be based on the annual use allowance which is determined based on the estimated life of the vehicle or equipment and its original purchase cost Interest earnings and sales of surplus equipment as well as any related damage and insurance recoveries will be credited to the Equipment Replacement Fund. CIP Project"15,000 or More. Construction projects and equipment purchases which cost $15,000 or more will be included in the Capital Improvement Plan (CIP); minor capital outlays of less than $15,000 will be included with the operating program budgets. CIP Purpose. The purpose of the CIP is to systematically plan, schedule, and finance capital projects to ensure cost - effectiveness as well as conformance with established policies. The CIP is a four year plan organized into the same fimctional groupings used for the operating programs. The CIP will reflect a balance between capital replacement projects which repair, replace, or enhance existing facilities, equipment or infrastructure; and capital facility projects which significantly expand or add to the City's existing fixed assets. C. Project Manager. Every CIP project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status. C. Future Capital Project Designations. The D. Council may designate specific fiord balance levels for f it re development of capital projects which it has determined to be in the best long- term interests of the City. D. Other Designations and Reserves. In addition to the designations noted above, fimd balance levels will be sufficient to meet funding requirements for projects approved in prior CIP Review Committee. Headed by the City Administrative Officer or designee, this Committee will review project proposals, determine project phasing, recommend project managers, review and evaluate the draft CIP budget document, and report CIP project progress on an ongoing basis. E. CIP Phases. The CIP will emphasize project planning, with projects progressing through at least two and. up to ten of the following phases: -to- ? -!;- POLICIES AND OBJECTNES BUDGET AND FISCAL POLICIES 1. Designate. Appropriates fiords based on designed, and more projects will be designed projects designated for fimdmg by the than will be constructed or purchased during the Council through adoption of the Financial term of the CIP. Plan. F. C1P Appropriation. The City's annual CIP 2. Study. Concept design, site selection, appropriation for study, design, acquisition, feasibility analysis, schematic design, and/or construction is based on the projects environmental deternimation, property designated by the Council through adoption of appraisals, scheduling, grant application, the Financial Plan- Adoption of the Financial grant approval, specification preparation for Plan CIP appropriation does not automatically equipment purchases. authorize funding for specific project phases. Tins authorization generally occurs only after 3. Environmental review. EIR preparation, the preceding project phase has been completed other environmental studies. and approved by the Council and costs for the succeeding phases have been fully developed. 4. Real property acquisitions. Property acquisition for projects, if necessary. 5. Site preparation. Demolition, hazardous materials abatements, other pre- construction work 6. Design. Final design, plan and specification preparation, and construction cost estimation. 7. Construction. Construction contracts. 8. Construction management Contract project management & inspection, soils & material tests, other support services during construction. 9. Equipment acgrdsWns. Vehicles, heavy machinery, computers, office furnishings, other equipment items acquired and installed independently from construction contracts. 10. Debt service. installment payments of principal and interest for completed projects fimded through debt financings. Expenditures for this project phase are included in the Debt Service section of the Financial Plan. Generally, it will become more difficult for a project to move from one phase to the next As such, more projects will be studied than will be Accordingly, project appropriations are generally made when contracts are awarded. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fiord balance or allocated to another project. If project costs at the time of bid award are greater than budget amounts, five basic options are available to the Council: 1. Eliminate the project 2. Defer the project for consideration to the next Financial Plan period. 3. Rescope or change the phasing of the project to meet the existing budget 4. Transfer finding from another specified, lower priority project 5. Appropriate additional resources as necessary from find balance. G. CIP Budget Carryover. Appropriations for CIP projects lapse three years after budget adoption. Projects which lapse from lack of project account appropriations may • be resubmitted for inclusion in a subsequent CIP. Project accounts which have been appropriated will not lapse until completion of the project phase. H. Program Objectives. Project phases will be listed as objectives in the program narratives of the programs which manage the projects. -11- J?— /3 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES L Public Art CEP projects will be evaluated 3. Capital improvements will be financed during the budget process and prior to each primarily through user fees, service charges, phase for conformance with the City's public art assessments, special taxes, or developer policy, which generally requires that 1% of agreements when benefits can be eligible project construction costs be set aside specifically attributed to users of the for public art. Excluded from this requirement facility. Accordingly, development impact are underground projects, utility infrastructure fees should be created and implemented at projects, fimdmg from outside agencies, and levels sufficient to ensure that new costs other than construction such as study, development pays its fair share of the cost environmental review, design, site preparation, of constructing necessary community land acquisition and equipment purchases. facilities. It is generally preferred that public art be 4. Transportation impact fees are a major incorporated directly into the project, but this is finding source in financing transportation not practical or desirable for all projects; in this system improvements. However, revenues case, an in -lieu contribution to public art will be from these fees are subject to significant made. To ensure that fiords are adequately fluctuation based on the rate of new budgeted for this purpose regardless of whether development Accordingly, the following public art will directly incorporated into the guidelines will be followed in designing and project, fiords for public art will be identified building projects faded with transportation separately in the CEP. impact fees: CAMAL FINANCING a. The availability of transportation impact AND DEBT MANAGEMENT fees in funding a specific project will be analyzed on a case- by-case basis as plans and specification or contract A. Capital Financing awards are submitted for CAO or Council approval. 1. The City will consider the use of debt financing only for one -time capital b. if adequate finds are not available at improvement projects and only under the that time, the Council will make one of following circumstances: two determinations: a When the project's useful life will • Defer the project until fiords are exceed the term of the financing. available. b. When project revenues or specific • Based on the high- priority of the resources will be sufficient to service project, advance fimds from the the long -term debt General Fund, which will be reimbursed as soon as fimds 2. Debt financing will not be considered become available. Repayment of appropriate for any recurring purpose such General Fund advances will be the as current operating and maintenance first use of transportation impact fee expenditures. The issuance of short -term fiords when they become available. instruments such as revenue, tax, or bond anticipation notes is excluded from this 5. The City will use the following criteria to limitation. (See Investment Policy) evaluate pay -as- you -go versus long -term financing in finding capital improvements: -12- 9-/4 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES Factors which favor pay -as -you -go fulancing a. Current revenues and adequate fiord balances are available or project phasing can be accomplished. b. Existing debt levels adversely affect the City's credit rating. the reliability of revenues to support debt service. 3. The City will generally conduct financings on a competitive basis. However, negotiated financings may be used due to market volatility or the use of an unusual or complex financing or security structure. c. Market conditions are unstable or 4. The City will seek an investment grade present difficulties in marketing. rating (BaaA3BB or greater) on any direct debt and will seek credit enhancements such Factors which favor long -term financing as letters of credit or insurance when necessary for marketing purposes, d. Revenues available for debt service are availability, and cost- effectiveness. deemed to be sufficient and reliable so that long -team financings can be 5. The City will monitor all forms of debt marketed with investment grade credit annually coincident with the City's ratings. Financial Plan preparation and review e. The project securing the financing is of process and report concerns and remedies, if the type which will support an needed, to the Council. investment grade credit rating. 6. The City will diligently monitor its f. Market conditions present favorable compliance with bond covenants and ensure interest rates and demand for City its adherence to federal arbitrage financings. regulations. g. A project is mandated by state or federal requirements, and resources are 7. The City will maintain good insufficient or unavailable. communications with bond rating agencies h. The project is immediately required to about its financial condition. The City will meet or relieve capacity needs and follow a policy of fiill disclosure on every current resources are insufficient or financial report and bond prospectus unavailable. (Official Statement). i. The life of the project or asset to be C. Debt Capacity financed is 10 years or longer. B. Debt Management 1. The City will not obligate the General Fund to secure long -term financings except when marketability can be significantly enhanced. 2. An internal feasibility analysis will be prepared for each long -tern financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address General purpose debt capaedy. The City will carefully monitor its levels of general purpose debt Because our general propose debt capacity is limited, it is important that we only use general purpose debt financing for high - priority projects where we can not reasonably use other financing methods: fiords borrowed for a project today are not available to fiord other projects tomorrow, and finds committed for debt repayment today are not available to fiord operations in the future. In evaluating debt capacity, general purpose annual debt service -13- /0—/Sol POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES payments should generally not exceed 101/6 of General Fund revenues; and in no case should they exceed 15 %. Further, direct debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement outlays will be fimded from long term financings. 2. Enterprise fund debt capacity. The City will set enterprise find rates at levels needed to fully cover debt service requirements as well as operations, maintenance, administration and capital improvement costs. The ability to afford new debt for enterprise operations will be evaluated as an integral part of the City's rate review and setting process. D. Independent Disclosure Counsel The following criteria will be used on a case -by- case basis in determining whether the City should retain the services of an independent disclosure counsel in conjunction with specific project financings: 1. The City will generally not retain the services of an independent disclosure counsel when all of the following circumstances are present: a. The revenue source for repayment is under the management or control of the City, such as general obligation bonds, revenue bonds, lease- revenue bonds or certificates of participation. b. The bonds will be rated or insured. 2. The City will consider retaning the services of an independent disclosure counsel when one or more of following circumstances are present a. The financing will be negotiated, and the underwriter has not separately engaged an underwriter's counsel for disclosure purposes. b. The revenue source for repayment is not under the management or control of the City, such as land -based assessment districts, tax allocation bonds or conduit financings. c. The bonds will not be rated or insured. d. The City's financial advisor, bond counsel or underwriter recommends that the City retain an independent disclosure counsel based on the circumstances of the financing. E. Land -Based FInancmgs 1. Public purpose. There will be a clearly articulated public purpose in forming an assessment or special tax district in financing public infrastructure improvements. This should include a finding by the Council as to why this form of financing is preferred over other finding options such as impact fees, reimbursement agreements or direct developer responsibility for the improvements. 2. Active role. Even though land -based financings may be a limited obligation of the City, we will play an active role in managing the district. This means that the City will select and retain the financing team, including the financial advisor, bond counsel, trustee, appraiser, disclosure counsel, assessment engineer and underwriter. Any costs incurred by the City in retaining these services will generally be the responsibility of the property owners or developer, and will be advanced via a deposit when an application is fled; or will be paid on a contingency fee basis from the proceeds from the bonds. 3. Credit quality. When a district is requested by a developer, the City will carefully evaluate the applicant's financial plan and ability to carry the project, including the payment of assessments and special taxes during build -out. This may include detailed background, credit and lender checks, and -14- % /6 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES the preparation of independent appraisal reports and market absorption studies. For districts where one property owner accounts for more than 25% of the annual debt service obligation, a letter of credit further securing the financing may be required. 4. Reserve fund A reserve fiord should be established in the lesser amount of: the maximum annual debt service; 125% of the annual average debt service; or 101/6 of the bond proceeds. 5. Valueto -debt ratios. The minimum value - to -date ratio should generally be 4:1. This means the value of the property in the district, with the public improvements, should be at least four times the amount of the assessment or special tax debt In special circumstances, after conferring and receiving the concurrence of the City's financial advisor and bond counsel that a lower value- to-debt ratio is financially prudent render the circumstances, the City may consider allowing a value -to -debt ratio of 3:1. Special findings should be made by the Council in this case. 6. Capitalized interest during construction. Decisions to capitalize interest will be made on case -by -case basis, with the intent that if allowed, it should improve the credit quality of the bonds and reduce borrowing costs, benefiting both current and firhrre property owners. 7. Maximum burden. Annual assessments (or special taxes in the case of Mello-Roos or similar districts) should generally not exceed 1% of the sales price of the property; and total property taxes, special assessments and special taxes payments collected on the tax roll should generally not exceed 2 %. 8. Benefit appordonmeRL Assessments and special taxes will be apportioned according to a formula that is clear, understandable, equitable and reasonably related to the benefit received by--or burden attributed to—each parcel with respect to its financed improvement. Any annual escalation factor should generally not exceed 2 %. 9. Special tax district administration. In the case of Mello-Roos or similar special tax districts, the total maximum annual tax should not exceed 110% of annual debt service. The rate and method of apportionment should include a back -up tax in the event of significant changes from the initial development plan, and should include procedures for prepayments. 10. Foreclosure covenants. In managing administrative costs, the City will establish minimurm delinquency amounts per owner, and for the district as a whole, on a case -by- case basis before initiating foreclosure proceedings. 11. Disclosure to bondholders. In general, each property owner who accounts for more than 10% of the annual debt service or bonded indebtedness must provide ongoing disclosure information annually as described under SEC Rule 15(c )-12. 12. Disclosure to prospective purchasers. Full disclosure about outstanding balances and annual payments should be made by the seller to prospective buyers at the time that the buyer bids on the property. It should not be deferred to after the buyer has made the decision to purchase. When appropriate, applicants or property owners may be required to provide the City with a disclosure plan. F. Conduit Financings 1. The City will consider requests for conduit financing on a case- by-case basis using the following criteria: a. The City's bond counsel will review the terms of the financing, and render an opinion that there will be no liability to -ls- 9 -/7 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES the City in issuing the bonds on behalf of the applicant b. There is a clearly articulated public purpose in providing the conduit financing. c. The applicant is capable of achieving this public purpose. 2. This means that the review of requests for conduit financing will generally be a two - step process: fast asking the Council if they are interested in considering the request, and establishing the groundrules for evaluating it; and then returning with the results of this evaluation, and recommending approval of appropriate financing documents if warranted. This two-step approach ensures that the issues are clear for both the City and applicant, and that key policy questions are answered. 3. The workscope necessary to address these issues will vary from request to request, and will have to be determined on a case -by- case basis. Additionally, the City should generally be fully reimbursed for our costs in evaluating the request; however, this should also be determined on a case- by-case basis. HUMAN RESOURCE MANAGEMENT A. Regular Staffing 1. The budget will fully appropriate the resources needed for authorized regular staffing and will limit programs to the regular staffing authorized. 2. Regular employees will be the core work force and the preferred means of staffing ongoing, year -round program activities that should be performed by full-time City employees rather than independent contractors. The City will strive to provide competitive compensation and benefit schedules for its authorized regular work force. Each regular employee will: a. Fill an authorized regular position. b. Be assigned to an appropriate bargaining unit c. Receive salary and benefits consistent with labor agreements or other compensation plans. 3. To manage the growth of the regular work force and overall staffing costs, the City will follow these procedures: a. The Council will authorize all regular positions. b. The Personnel Department will coordinate and approve the hiring of all regular and temporary employees. c. All requests for additional regular positions will include evaluations of • The necessity, term, and expected results of the proposed activity. • Staffing and materials costs including salary, benefits, equipment, uniforms, clerical support, and facilities. • The ability of private industry to provide the proposed service. • Additional revenues or cost savings which may be realized. 4. Periodically, and prior to any request for additional regular positions, programs will be evaluated to determine if they can be accomplished with fewer regular employees. (See Productivity Review Policy) 5. Staffing and contract service cost ceilings will limit total expenditures for regular employees, temporary employees, and -16- 9 —/B POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES independent contractors hired to provide operating and maintenance services. B. Temporary Staffing 1. The hiring of temporary employees will not be used as an incremental method for expanding the City's regular work force. 2. Temporary employees include all employees other than regular employees, elected officials, and volunteers. Temporary employees will generally augment regular City staffing as extra -help employees, seasonal employees, contract employees, interns, and work -study assistants. 3. The City Administrative Officer (CAO) and Department Heads will encourage the use of temporary rather than regular employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than full -time, year -round staffing is required. Under this guideline, temporary employee hours will generally not exceed 50% of a regular, full -time position (1,000 hours annually). There may be limited circumstances where the use of temporary employees on an ongoing basis in excess of this target may be appropriate due to unique programming or staffin g requirements. However, any such exceptions must be approved by the CAO based on the review and recommendation of the Personnel Director. 4. Contract employees are defined as temporary employees with written contracts approved by the CAO who may receive approved benefits depending on hourly requirements ements and the length of their contract Contract employees will generally be used for medium -term (generally between six months and two years) projects, programs or activities requiring specialized or augmented levels of staffing for a specific period of time. The services of contract employees will be discontinued upon completion of the assigned project, program or activity. Accordingly, contract employees will not be used for services that are anticipated 'to be delivered on an ongoing basis. C. Independent Contractors Independent contractors are not City employees. They may be used in two situations: 1. Short-term, peak work load assignments to be accomplished through the use of personnel contracted through an outside temporary employment agency (OEA). In this situation, it is anticipated that the work of OEA employees will be closely monitored by City staff and minimal training will be required. However, they will always be considered the employees of the OEA and not the City. All placements through an OEA will be coordinated through the Personnel Department and subject to the approval of the Personnel Director. 2. Construction of public works projects and delivery of operating, maintenance or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills and equipment will generally be determined and provided by the contractor. Contract awards will be guided by the City's purchasing policies and procedures. (See Contracting for Services Policy) PRODUCTIVITY Ensuring the "delivery of service with value for cost" is one of the key concepts embodied in the City's Mission Statement (San Luis Obispo Style - Quality With Vision). To this end, the City will constantly monitor and review our methods of -17- 91-11? POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES operation to ensure that services continue to be delivered in the most cost - effective manner possible. This review process encompasses a wide range of productivity issues, including: A. Analyzing systems and procedures to identify and remove unnecessary review requirements. B. Evaluating the ability of new technologies and related capital investments to improve productivity- C. Investing in the organization's most valuable asset - our human capital - by developing the shills and abilities of all City employees, with special emphasis on first -line supervisors. D. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance. E. Evaluating the ability of the private sector to perform the same level of service at a lower cost F. Periodic formal reviews of operations on a systematic, ongoing basis. G. Maintaining a decentralized approach in managing the City's support service fimctions. Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by- 1. Encouraging accountability by delegating responsibility to the lowest possible level. 2. Stimulating creativity, innovation and individual initiative. 3. Reducing the administrative costs of operation by eliminating unnecessary review procedures. 4. Improving the organization's ability to respond to changing needs, and identify and implement cost - saving programs. . 5. Assigning responsibility for effective operations and citizen responsiveness to the department CONTRACTING FOR SERVICES A. General Policy Guidelines Contracting with the private sector for the delivery of services provides the City with a significant opportunity for cost containment and productivity enhancements. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost - effective programs. 2. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies, and ongoing operating and maintenance services. 3. In evaluating the costs of private sector contracts compared with in -house performance of the service, indirect, direct, and contract administration costs of the City will be identified and considered. 4. Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below. 5. For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition, reassignment, or absorption by the contractor. B. Evaluation Criteria 1. Within the general policy guidelines stated above, the cost- effectiveness of contract services in meeting established service levels will be determined on a case -by -case basis using the following criteria: -18- 9 -20 POLICIES AND OBJECTIVES BUDGET AND FISCAL POLICIES 2. Is a sufficient private sector market available to competitively deliver this service and assure a reasonable range of alternative service providers? 3. Can the contract be , effectively and efficiently administered? 4. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? 5. Can a private sector contractor better respond to expansions, contractions, or special requirements of the service? 6. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as the contractor's performance after bid award? 7. Does the use of contract services provide us with an opportunity to redefine service levels? 8. Will the contract limit our ability to deliver emergency or other high priority services? 9. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for its delivery? -19- �.2� 1 �=22 41* council Mft*D��a -� f agenda RepoRt '° � CITY OF SAN LUIS OBISPO FROM Bill Statlea, Director of Finance VY 2 SUBJECT: GOAL- SETTING PROCESS FOR 1999 -01 CAO RECON MUMATION Approve the goal- setting process for 1999 -01. DISCUSSION Background On October 20, 1998, the Council approved the preliminary schedule for preparing the 1999 -01 Financial Plan and conceptual approach to Council goal - setting as part of this process. Under the approved approach, we will continue using a multi year budget that begins with the Council setting goals for the most important things for the City to accomplish over the next two years. Based on our experience over flie past eight years, this has been a suw msfd process in asstning that the 5mdamental purpose of the City's budgetary process is achieved: linking what we want to =ompush for our community over the next two years with the resources necessary to do so. Two-Step Approach We will again use a " two - step" approach to the Council goal- setting process, and as previously approved by the Council, use Don M=fr as our & dlitator at both workshops: ■ Community workshop Held on the evening of Tuesday.. January 12, the purpose of this `unity forum" is to solicit samested goals and work programs from Council advisory bodies, amity groups and interested mdwidnals. In notices sent to these groups, we have requested That wzittea suggestions be provided to us by January 4, 1999. To ensure that adequate space is available for fins wofthop, it will be held at The For®. ■ Counci[ goal -semft workshop Following the receipt of written and oral comments on .Jmary 12, the Wal-setting workshop will be held on Saturday, January 30 in the library Community Room. Goa"etting Process Provided in Exhibits .A and B are detailed descriptions of the proposed objectives, approach, schedule and roles for both the community forum. and goal- setting workshops, summarized as follows: ■ The January 12 community forum is intended to solicit suggestions from Council advisory bodies, community groups and 'interested individuals on proposed City goaLs- q.3 CouncU Agenda Report—Goal-Setting Process for 1999.01 Page 2 . what is being requested, why the presenter believes it is important to the community so the Council learns the underlying hope or objective, and how the underlying hope can be natively achieved. Council members will be provided with worksheets to assist them in taking notes, and brief summaries of the wha4 why and how will be recorded on flip charts organized into broad goal categories based on the six major City functions used in the Financial Plan: public safety, public utilities, transportation, leisure, cultural & social services, community development and general government. City staff will summarize the results of the workshop and distribute them to the Council by January 15, 1999. ■ At the all-day January 30 workshop, the Council will review.the status of current major City goals and consider the City's fiscal outlook. This will be followed by the fast step in "goal - setting:" reviewing the consolidated summary of goals presented by Council members to ensure clarity, completeness and understanding, and then narrowing the list to candidate goals that are supported by at least three Council members. After this step, the staff will prepare a final listing that the Council can use in prioritizing goals. In the past, the Council has used a ranking system of 5 through 0 for each candidate goal, summarized as follows: 5 --Most important, highest priority goal for the City to achieve over the nest two years. 4—Very important goal for the City to achieve. Apto = 7li 4 4,n ct.:e 3- important goal for the City to achieve. k Ae a 'f•- S a 2—Tot as important to achieve as other candidate goals. AQ-ft^S she=, 1— Address only if existing resources are available to fimd the goal. 0— Should be deferred for consideration to the 2001 -03 Financial Plan. Depending on the number of candidate goals, total points available to individual Council members has ranged in the past from 50 to 75—about 3 points per candidate goal. Staff will summarize the results of the Council's ranking dining a break at the workshop. Based on our past experience, it-is luilmiy that three priority" tiers" will emerge from this process: ■ Major City goals. These represent the most important, highest priority goals for the City to accomplish over the Head two years, and as such, resources to accomplish them should be included in the 1999 -01 Financial Plan. If the work program approved by the Council for a major City goal is not included in the Preliminary Financial Plan prepared by the CAO; compelling reasons and justification must be provided as to why resources could not be made available to achieve this goal ■ Other important goals. Goals in this category are important for the City to accomplish, and resources should be made available in the 1999 -01 Financial Plan if at all possible. ■ Address as resources permit While it is desirable to achieve these goals over the next two years, doing so is subject to current resource availability. If needed, continued consideration of the goal- setting is scheduled for the nest regular Council meeting following the January 30 workshop — February 2, 1999. . 9 -2g Counetl Agenda Report--- Goa4SaWn9 Process for 1999-01 ''age 3 Coma? Homework Assfgnmrreat Provided in Exhibit C is the Council's ` Homework assignment" for the January 30 workshop. It requests that Council members prepare gad submit their suggested goals by January 21. These will then be consolidated with other Council member goals based on common themes and distributed on January 25 for review and consideration before the workshop. Major CSty Goal C7r*erfa. Provided in Exhibit D is the suggested "criteria for major City goals" which have been used by the Council for the past eight years. Fxtm we Noafkatiomx . We have made extensive efforts to invite community and advisory body participation in this process, including: ■ Briefing with advisory body chairs on October 8 on their role in the process at the quarterly Mayor/Advisory Body Chair meeting; and follow-up reminder to advisory body chairs. ■ Notices to over 175 community groups and interested individuals inviting them to submit written suggestions, participate in the community forum and attend the goal - setting workshop. ■ "Community Budget Bulletin" inserts in our utility bills requesting goal suggestions from our citizens and 'inviting them to participate in the community forum. This will reach about 13,000 households. ■ Notice in our Winter parks and recreation program brochure about the goal - setting process; over 18,000 copies of this brochure are distributed. ■ Cards that Council Members can hand -out in mkm3al contacts inviting participation. ■ Display ads will be run in January in San Luis Magazine, Telegram Tnbmme and New Times. Goal -Set&g WorAshop Notebooks To help organize all the background information that Council members will receive as part of this goal- setting process, notebooks will be distributed at the January 5,1999 Council meeting with the following ten sections: ■ Agendas for the January 12 and January 30 workshops. ■ Status of goals and objectives. ■ Suggested goals received by January 4 from community groups and interested individuals (additional submissions received after this date will be distributed to the Council in a three -hole punch format for inclusion in the notebook). ■ Suggested goals received from Council advisory bodies. ■ Suggested goals presented by the staff" ■ Summary of results from the January 12 workshop (to be distributed on January 15). ■ Five year fiscal forecast (to be distributed on January 15). E Consolidated Council member goals (to be distributed on January 25). /4!lE Council Agenda Report—Goal-Setting Process for 1999.01 _ Page 4 ■ Other background information such as the 1999 -01 Financial Plan calendar, outlines for the community and goal -sag workshops, Council homework assignments, criteria for major City goals and Financial Plan policies. ■ Notes and space for other supplemental materials that the Council may receive. Council Goal Work Programs After the Council finalizes goals and objectives for 1999 -01, the staff will prepare detailed work programs for each of them. Based on past experience, it is important for the Council to reach consensus not only on the objective, but on the program, action plan and resources that will be needed to accomplish it as well. Unless the staff fully understands the propose scope and timefiame that the Council intended, we can not identify needed resources; and without this understanding, the Preliminary Financial Plan may significantly over (or under) fund the desired work effort In short, before the staff begins to build the Preliminary Financial Plan around Council goals, it is essential that we have a clear understanding of what the Council hopes to achieve with each goal over the next two years. Accordingly, the purpose of each work programs is to: ■ Define and scope the adopted goal. ■ Ensure that there is a clear understanding of the goal so appropriate resources are allocated, and progress can be measured in achieving it. This is especially important in the case of objectives where fully achieving the goal is likely to extend well beyond the two-year Financial Plan period However, we can measure progress and our success in accomplishing the goal —by clearly defining the specific actions we plan to undertake over the next two years. We plan to present the goal work programs to the Council on April 6, 1999. Next Steps The Financial Plan calendar approved by the Council on October 20, 1998 is provided in Exhibit E. After the community forum and goal- setting workshop in January, key dates in the budget process include: Tuesday, February 2 Follow -up to Council .goal- setting if needed. Continued Regular Meeting consideration of goal- setting at the next regularly scheduled Council meeting following the January 30 workshop if needed Tuesday; February 23 Mid -year budget review. Consider the City's fiscal status at Special Meeting the mid -point of the fiscal year and make appropriation adjustments as necessary. M'� Council Agenda Report-4oal4etting Process for 1999 -01 Page 5 Tuesday, April 6 Council goal work programs. Review and approve detail Regular Meeting work programs to accomplish Council goals; provide other. budget direction as needed. Monday, May 10 Monday, May 17 Special Budget Workshop Wednesday, May 19 Special Budget Workshop Tuesday, May 25 Special Budget Workshop Tuesday, June 1 Regular Meeting Tuesday, June 15 Regular Meeting SUMMARY CAO issues Preliminary Financial Plan. Budget workshop. Review the Financial Plan and consider General Fund operating programs. Budget workshop. Consider General Fund capital improvement plan (CIP) projects. Budget workshop. Consider Enterprise Fund operating programs, CIP Projects, revenue requirements and rates. Public hearing. Continue to discuss and receive public comment on the Preliminary Financial Plan. Public hearing. Continue to discuss and receive public comment on the Preliminary Financial Plan; adopt the budget. Council goal - setting is an important "first step" in the City's Financial Plan process. In fact, it is important to stress just this fact-4t is the beginning of the budget process, not the end Setting goals. -and subsequently approving work prods not adoption of the budget. As reflected in the budget calendar above, this will not occur until June of 1999, following issuance of the Preliminary Financial Plan and extensive budget workshops and hearings. A. Outline for community workshop (January 12) B. Outline for Council goal - setting workshop (January 30) C. Council member submissions for the goal- setting workshop D. Criteria for major City goals E. Budget calendar G: Fmmod1M41 Fnm=W MmlCaLma7 CxW SeW r/Agalda RVMUCOa SC=91' D= AM& Report —Dena & 1998 F-2 % Exhibit A Outline for Community Workshop 7:00 -11:00 p.m., Tuesday, January 12, 1999 Objectives Gain valuable input from advisory boards, community groups, and citizens on proposed City goals — "What" the community wants. • Encourage discussion about "why" the goals or projects are of interest to the presenters so that the Council learns what are the underlying hopes or objectives. • Explore "How" the underlying hopes or objectives can be met — alternative approaches, opportunities for collaboration or shared resources with other parties, and requests for additional alternatives to be developed with City staff assistance where appropriate. • Assist Council members in the preparation of their thoughts, priorities, and candidate goals. Approach 1. Request presenters to briefly summarize: requested goals (which most will have submitted in writing), why the goals would contribute to a better San Luis Obispo, alternative approaches, and opportunities for collaboration. 2. Record brief summaries of the "what", "why", and "how" for the requests on separate flip charts organized by goal categories: public safety; public util'dies; transportation; leisure, cultural & social services; community development; and general government. 3. Encourage Council members to ask questions and use worksheets to . formulate their fist of possible candidate goals. 4. Review the array of goals by category at the end of the evening workshop and develop key themes about the community's hopes and potential ways to realize them. 5. Distribute results from the meeting: central themes on San Luis Obispo's hopes and aspirations, suggested goals, and alternatives (including any follow up results from staff and community groups). [provide these materials and five -year fiscal forecast to Council members by January 151 ? "q Schedule 7:00 - 7:05 p.m. Welcome Mayor 7:05 - 7:20 p.m. Introduction (process, past goals, criteria for major City goals, summary of fiscal outlook, and Key Values for the City) CAO 7:20 - 9:50 p.m. 9:50 -10:00 P.M. Community input break Public 10:00 -11:00 p.m. Summary: key hopes expressed, potential goals, and further work needed. All Roles Mayor call and recognize the presenters, participate actively with other Council members. Council members: listen, ask questions, note areas of interest for candidate goals, and participate in developing summary themes at the end of evening. Staff: gather and organize public input prior to workshop, develop and submit staff suggestions for Council consideration (provide written copies for public at the workshop), present staff suggestions at end of public input, record `whaf, "why", and "how" on flip charts. Coach: elicit the *whaf, Nvhy", and "how" from presenters, keep the flow and content of the workshop moving constructively, guide Council and participants in developing the summary themes at the end of the evening. Note: Written comments received by January 4, 1999, will be included in the goal- setting workbook, which will be distributed to Council members on January 5, 1999. Any comments received after January 4 will be distributed to Council - members as they are received. W Exhibit 67 Outline for Council Goal- Setting Workshop 8:30 am. - 4:00 p.m., Saturday, January 30, 1999 Obeectives • Ground the session in the hopes and aspirations for San Luis Obispo as set forth on January 12. Place proposed goals in context of City's fiscal realities. • Review potential City goals compiled from the Council members' submissions. • Clarify the nature and scope of each potential goal so that everyone is dear about what each one means and its implications. • Select candidate City goals from those submitted (i.e. goals that 3 or more members favor). • Formulate an agreed upon set of Major City Goals. • Identify any additional issues for resolution before or at the February 2 Council meeting. Approach 1. Review the status of existing major City goals. 2. Consider the results of the five -year forecast and other trends. 3. Review potential goals in each category to ensure clarity and completeness. 4. Narrow the list of goals in each category to candidate goals (i.e. those favored by 3 or more Council members). 5. Discuss the balance and weighting Council members want to achieve. Confirm rating scale and maximum number of points to allocate among goals. 6. Assign the desired weighting to each goal and calculate the ranking of goals. 7. Review the preliminary results and identify any areas needing further consideration. Schedule 8:30 - 9:00 a.m. 9:00 - 9:05 a.m. 9:05 - 9:10 a.m. 9:10 - 9:30 a.m. Refreshments Welcome and Introductions Purpose, Process & Guidelines Status of Existing City Goals Mayor Coach GAO 9:30 -10:00 a.m. 5 Year Forecast and Other Trends Fin. Director 10:00 - noon Review Goals by Category and Select Candidate Goals Council [Council may accept further comments from the public that have not been previously presented] noon -1:00 p.m. lunch [staff compiles candidate goals] 1:00 - 2:00 p.m. Discuss and Weight the Goals Council 2:00 - 2:30 p.m. Tabulate Results Staff 2:30 - 3:15 p.m. Review and Identify Major City Goals Council 3:15 - 4:00 p.m. Note Areas Needing Further Consideration Council/Staff Roles Mayor preside over the workshop and participate actively with other Council members. Council members: clarify and discuss the potential goals, express views on desired balance, vote their preferred weightings, and specify further work (if needed). Staff: report on status of current goals, review economic trends, ensure goals have needed content and clarity, and tabulate results. Coach: keep the flow and content of the workshop moving constructively, guide Council members in the process of goal weighting and selection, and draw staff and public into deliberations as desirable. -32 Exhibit-di Council Member's Submission for Goal- Setting Workshop due: Thursday, January 21, 1999 Please submit a list of the goals you would like the Council to consider at the Goal- Setting Workshop on Saturday, January 30, 1999. Your submissions will be combined with those from all other Council members and compiled into a single list without designating which Council member submitted which items. You will receive this combined list on Monday, January 25, so that you can review and consider it prior to the workshop. As you develop your list, please consider the suggested `criteria for major City goals." Although there is no limit on the number of goals you may wish to suggest, 5 to 7 from each Council member have worked well in the past 93v Exhibit D Criteria for Major City Goals ■ Be legitimate to our beliefs (real, supported). ■ Agreed upon by a Council majority. ■ Reduced in number for comprehension, communication and focus. ■ Set forth in one document —the Financial Plan. ■ Be clear and understandable. ■ Established as a high priority and a real commitment. ■ Translated into the objectives of employees at all levels of the organization. ■ Created within a supportive atmosphere where participants are not afraid to state their suggestions for improving goals or objectives. ■ Accepted to the point where resistance to them is reduced or eliminated. G: 1999-01 FummcW PLwfiCou=d GoWSeUmgUajor GcW C n=m KM Exhibit li 1999 -01 Financial Plan Calendar October 8,1998 Brief advisory body chairs on their role in the process at quarterly Mayor/advisory body chair meeting - October 20, 1998 Council approves conceptual Financial Plan process and calendar. November 1998 Send letters requesting participation in goal - setting process from advisory bodies, community groups and interested individuals. November 1998 Begin preparing five year General Fund fiscal forecast December 8, 1998 ° Council reviews status of major City goals and revises action plans as needed; finalizes plans for goal - setting process; considers Financial Plan organization and policies; and considers annual financial report and fiscal results for 1997 -98. January 4,1999 • Receive written comments from advisory bodies, community groups and interested individuals. January 12, 1999 Council holds community workshop. January 15,1999 Distribute five year fiscal forecast and community workshop results to Council. January 25, 1999 Distribute consolidated Council member goals. January 30, 1999 • Council holds goal- setting workshop: reviews status of major City goals; discusses candidate goals presented at January 12 workshop; considers results of fiscal forecast; discusses Council member goals; prioritizes and sets major City goals. February A 1999 • Council finalizes goals and priorities. February 10,1999 • Issue budget instructions; departments begin preparing budgets. February 23,1999 • Council considers midyear budget review. March to May, 1999 • Departments submit budget requests. • Budget review team analyzes requests and meets with departments; CAO finalizes budget recommendations. ApT7 4 1999 • Council approves detailed goal work programs. May 10, 1999 • Issue preliminary budget May 17, 19p 25v 1999 • Council holds special evening budget workshops: — May 17: Financial Plan overview and General Fund operating programs- - May 19: General Fund CIP projects. — May 25: Enterprise Fund programs, projects and rates. May 26, 1999 • Plamring Commission reviews CIP for General Plan consistency. June 1,15,1999 • Council holds continued hearings; adopts budget Bold Italics — Council Meeting Dates � -3� � - r ?i &9 0 FROM council agenba RepoRt CITY OF SAN LUIS OBISPO Bill Stader, Director of Finance lrj�— SUBJECT: GENERAL FISCAL OUTLOOK FOR 1999 -01 CAO RECOMN ENDATION Consider the City's general fiscal outlook for 1999 -01. DISCUSSION ►moo. Preparation of the five year fiscal forecast for the General Fund is currently underway, and will be ready for distribution by the later part of January. While we will have a much better handle on the City's fiscal outlook once we complete this comprehensive review of where we've been and where we seem to be headed, a few general conclusions can be reached based on our initial work so far: Favorable Indicators ■ Strong current financial condition. The City continues to be in strong fiscal position by state and national standards. As discussed more fully m the annual financial report for 1997 -98, the City's General Fund's fiscal performance for the past year compared favorably with budget projections. ■ Positive economic outlook for the region. The UCSB economic forecast recently presented a favorable outlook for the coming year while not as `robust" as 1998, the next two years should still see continuing growth in the region. However, while improvement in the regional economy is a positive indicator, it is by no means certain that the City will share m this. This is especially true given the increased (and successful) competition by the north and south county area on our traditional position as the retail center for the County. ■ No farther state cuts--or returns. While no mitiatives are on the.horizon to restore any of the State cats to cities over the past several years (totaling over $1.5 million annually for the City), there are also no current discussions underway to make further cuts to cities. Unfavorable Indicators ■ Increasing operating costs: Even if we do not expand or enhance service levels, there will be still be inflationary cost pressures on operating expenditures, which account for about 75% of General Fund outlays. The critical question in this regard —which will be addressed in the five year fiscal forecast—is whether revenues overall will rise faster than operating costs. However, past experience tells us that even if we control our current cost 9 -37 Council Agenda Report General Fiscal Outlook for 1999.01 _ Page 2 base to just increases in inflation, there will still be significant pressures to expand or enhance operating programs m responding to legitimate, unmet service needs. ■ lnhwtraclnre and facility needs. Continuing our commitment to a strong capital improvement plan (CIP), especially in the area of adequately maintaining our existing infrastructure and facilities, will continue to be a major fiscal challenge. ■ Limited revenue options. With the passage of Proposition 218, our revenue options are more limited than they have been in the past. While a few options remain that can be implemented by the Council, any increased or new tax source will require voter approval. ■ Retirement costs. As reported to the Council during the 1998 -99 budget process, the State has made significant changes in the methodology used to calculate the City's retirement rates. In addition to a change in actuarial assumptions, they also converted to a new computer system which they believe provides a more accurate calculation of those rates. The initial impact appears to be a significant unfimded liability for public safety employees, which is likely to result in substantially higher retirement costs. Compared with an employer contribution rate of 41/o in 1998 -99, this rate could be as high as 23.6% in 1999 -00, resulting in an increase in General Fund costs of $1.4 million annually. At the same time, the retirement assets for miscellaneous employees are over- funded and can temporarily offset some of the increased public safety costs. Once PERS calculates the 1999 -00 fiscal year rates, a strategy for funding the revised costs will be evaluated as part of the 1999 -01 Financial Plan process. Unfortunately, we do not expect to receive these updated actuarial costs until late December at the soonest �Iilu lu ":i`I In general, it is likely that we will have adequate resources to fiord current service levels and a limited capital improvement plan. However, improving service levels or more My achieving our capital improvement goals will be very difficult. This challenge is highlighted by the proposed CIP in the third and fourth years of our cum 1997-99 Financial Plan compared with the first and second years: the average General Fund commitment to the ClP for 1997 -99 is $2.4 million; for 1999 -01, this ins to $3.7 million, an increase of $13 million. And this does not include the $1.1 million increase in sanual finding for street maintenance and reconstruction recommended m the recently adopted Pavement Management Plan. In summary, we do not foresee grave difficulties ahead of us at this time in maintaining current service levels and supporting a minimal capital improvement plan. However, there are operating programs where improvements should be made, and mfiastructure needs where more than minimal capital improvement plan projects will be warranted. Funding these improvements in our current fiscal environment will be very difficult. Nonetheless, this does not mean that we can _ not fund new initiatives, although this will not be easy. Several options are available to us in doing this: I � Council Agenda Report General Fiscal Outlook for 1999-01 Page 3 Existing resources. Re- prioritize current service levels, programs and projects. ■ New resources. Grow the economy at levels better than forecasted; or implement some Of The remaining revenue options available to the Council under Proposition 218. ■ Voter - approved revenues in November of 2000. Under Proposition 218, any increased or new tax requires majority voter for general purposes, and two- thirds voter approval for special purposes. Unless there is an emergency, this election must be held in conjunction with Council member elections. This means that the soonest such an election could be held is November of 2000. While this might help with our longer -term prospects as discussed in the Long -Term Fiscal Health `white paper" presented to the Council in January of 1998, it is not a potential source of funding for the 1999 -01 Financial Plan due to this timing requirement. ■ Expenditure reductions. Limit operating programs to current service levels; and cut back on current CIP levels. ■ Legislative efforts. Work to restore revenues taken away from us by the State, and hope that the Governor and Legislature will be receptive to these efforts. Of all these options, this is the one least in our ability to control, and given the history of State and local government fiscal relationships, the one least likely to be successful. G: 1999 -01 Fay xW PIsoK'4=Cl Goal -ScWn5 Cm=-I AVm& RqwrftCkna9 Fssd Outlook P pr& Report— Deamba& 1998 n � /D J�iab� ? city of san luis omspo What Are the Most Important Things for the City to Accomplish Over the Next Two Years? The City is starting to prepare our Preliminary Financial Plan and next two year budget —the 1999 -01 Budget. Financial Plan. The very first step in this process is Council goal- setting. These upcoming workshops will play a major role in shaping the City's In setting goals for the next two future spending priorities. We years, the Council is genuinely encourage you to attend these interested in knowing what our citizens believe are the most important things for the City to do. The City's goal - setting process is organized into two steps: ■ A community forum will provide community groups, interested 'individuals and Council advisory bodies with an opportunity to share with the Council what Community Forum. We hear from you. Tuesday, January 12, 1999 7:00 PM to 11:00 PM The Forum 751 Marsh Street Goal -Setting Workshop The Council sets goals. Saturday, January 30, 1999 8:30 AM to 4:00 PM City /County Library Community Room 995 Palm Street they believe are the most important priorities that the City should pursue over the next two years- ■ A Council goal- setting workshop will then be held where the Council will set major City goals for the next two years. These will guide preparation of the 1999-01 special sessions, and to share your thoughts with us. Please help us shape our future. Want more information? For more information about these upcoming workshops or the City's budget process, please call us at 781 -7125. V/ 1111 city of san tui s oBi spo 990 Palm Street ■ San Luis Obispo, CA 93401 News Release (805) 781 -7125 DATE: January 5, 1999 RELEASE: Immediate CONTACT: City of San Luis Obispo – Bill Statler, Director of Finance CITY BEGINS BUDGET PROCESS WTTR GOAL- SETTING First Step is Community Forum The City is starting to prepare its next two year budget —the 1999 -01 Financial Plan. The very first step in this process is Council goal - setting. In setting goals for the next two years, the Council is genuinely interested in knowing what the members of our community believe are the most important things for the City to do. For this reason, the first step in the City's goal- setting process is a community forum providing community groups, interested individuals and Council advisory bodies with an opportunity to share with the Council what they believe are the most important priorities for the City to.. pursue over the next two years. This foram will be held on Tuesday, January 12, 1999, beginning at 7:00 PM at The Foram, 751 Marsh Street The comments and suggestions received at this workshop will play a major role in shaping the City's future spending priorities, and all community members are encouraged to attend and share their thoughts with the Council. This forum will be followed by a Council goal - setting workshop on Saturday, January 30, 1999, where the Council will set major City goals for the next two years. These will guide preparation of the 1999 -01 Preliminary Financial Plan and Budget. This goal - setting workshop will-begin at 8:30 AM, and will be held in the City/County Library Community Room, 995 Palm Street More information about the community forum and the City's budget process is available by calling Bill Statler, Director of Finance, at 781 -7125. 9 �v '?ARK RANGER SERVICE Why mw? �ir✓i'l��ec�� /� •s �y:6k�h New Trails Update Volunteer Vail Lookouts Ranger Mcnderfer will take over as supervising ranger on December IS&. She will oversee open space and regular patroL This will include more trail maintenance and overseeing new trail construction. Ranger Green will be in charge of all envi- ronmental education activities. NorTra& Up&* The Bishop Peak Trail is still under contruction. Work has progressed fairly well since the project began. Crews have been slowed by the term they are working in now With mother names cooperatM the trail should be open before the end of ,e year The Fdsman loop Karl from the water tower (off of the Pat = catrance) is Clete. The Felstnan loop trail provides adiffer.eat view than previous trails in the Bishop Peak Natural Reserve. It meanders the north side of the mom, with views of Poly Canyon, Caesta ddge, 5 of the 7 sisters and Moro Bay. Over balf of this trail is in shaded, woddy areas. which makes it nice eves on hot days For mauve information or-to wIIunteer for trail work please can Ranger DiBendeder at 781 -7072. MdWrAwwNeatfeid Mae ` abnteer MAIn about pros mmisnnderway. Thelocb;erts will hike the to i s of the open space on a regular basis. TheY will nit conditions and any problems to the Ranger Service. Far more mfiamation or to volunteer, call Ranger Diffendert'er at 7817072 16 What Are the Most Important Things for the City of San Luis Obispo to Accomplish Over the Next Two Years? The Cry is starting to prepae>r nor nem two year budget— the 1999 -01 Financial Plan. The very first step in this process is Conical goal- seuhi& Goa - Selling 71 met and Plan CannumdtyForma We hear frost you Tuesday, January 12,1999 7:00 to 11:00 PM The Forum 751 Marsh Street Goal-Setimg Workshop. The Coursed sera goals. Saturday, January 30, 1999 9:00 AM to 4:00 PM City /County Library Community Room 995 Palm Std In setting goals for the next. two years, the Council is gendnely interested In Imowhtg otrhat env drums believe are the mad hoPW sot things for &a Cityio do. The goal - seating process has been otga®ed into two steps A eommunily foram will provide Council advisory bodies, comity g W and interested iodvidosls.with. an on"a me ytosharewithftCoumalwhatthaybelieve ae the most impratauit priorities diet the.0 by sboald pur- sue over the near two yeas. A Coaaell goal-sedag tvorlahoP will then be held where the Corral will set major City goals for the neat two yeas. These upcoming workshops. will _play a major tole in shaping the City's false spending puosifles. We encourage you to attend these speeial .seaim' aid to share your thoughts with ns. Please. help us shape oar fa- tam Watt more kforn dion? If you would like more information about these upcoming wgdeshops orthe '(Sty's budget process, please call ut at 7817195:. , 9- t3 crty or • san Luis olmspo 990 Palm Street ■ San Luis Obispo, CA 93401 ■ (805) 781 -7125 December 23,1998 to ,74 hico,4,,.0 ink G: d�talS Council Goal -Setting for 199"1 REMINDER NOTICE Last Fall, we invited you to become involved in the City's goal - setting process for the 1999 -01 budget by providing us with written suggestions on the "most important things for the City to accomplish over the next two years," and by participating in the community forum and budget workshops that will follow. The purpose of this notice is to remind you that your written comments are due to the Department of Finance by Monday, January 4, 1999. This will allow Council members adequate time to review them before the Community Forum on Tuesday, January 12,1999. or A Recap of the Process —and Your Important Role in It. In setting goals for 1999 -01, the Council is genuinely interested in knowing what the community believes are the most important things for the City to achieve over the next two years. You are an essential part of this process. We need to hear from you if the City is to develop goals for the next two years that best reflect where we should be headed in our facilities, programs and operations. To help with this, we invite your participation as follows: • WrWn comments. It will be especially helpful if your comments could succinctly address what you are requesting for the community, why it is important to San Luis Obispo, and any creative ideas you have about how to achieve it such as alternative approaches, opportunities for partnering with others, or shared resources. • Community forum. This will provide you with an opporamity to further share with the Council what you believe are the most important things for the City to do over the next two years. • Comwa goal-setting workshop. After considering and digesting community input, the Council will review the City's fiscal outlook and other background information that will shape the City's budget. The Council will then discuss, Written Comments Due Monday, January 4, 1999 City of San Luis Obispo Attention: Department of Finance 990 Palm Street San Luis Obispo, CA 93401 Community Forum Tuesday, January 12, 1999 7:00 to 11:00 PM The Forum 751 Marsh Street set and prioritize goals for 1999-01. These will guide the preparation of the Preliminary Financial Plan, which the CAO will issue in May of 1999. This will be followed by extensive budget workshops and public hearings, leading to Council adoption of the budget by hme 30, 1999. We are looking forward to receiving your written comments, and we welcome your attendance at both. the community forum and the goal- setting workshop. If you have any questions about the City's budget process and your important role in it, please call us at 781 -7125. Sincerely, John Dui, City Administrative Officer Bill Statler, Director of Finance 9- Cf ®The City of San Luis Obispo Is committed to Including disabled persons In all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781 -7410. city of � san Luis osispo 990 Palm Street ■ San L ds Obispo, CA 93401 ■ (805) 781 -7125 November 16,1998 ZA What Are the Most Important Things for the City to Accomplish Over the Next Two Years? The City is starting to prepare our next two year budget —the 1999 -01 Financial Plan. The purpose of our budget process is to link the most important, highest priority things for the City to do over the next two years with the resources necessary to do so. This requires a process that identifies goals as the very first step in preparing the budget. For this reason, the City begins the budget process with Council goal- setting. The goals set by the Council drive the remainder of the budget process, and provide important direction to staff in PrePg the prey budget . In setting goals for the next two years, the Council is genuinely interested in knowing what the community believes are the most important things for the City to do. To help with this, the goal- setting process has been organized into two steps: • A community forum providing Council advisory bodies, community groups and interested individuals with an opportunity to share with the Council what they believe are the most important things for the City to do over the next two years. • After considering and digesting this community input, this will be followed by a Council goal- setting workshop where the Council will also consider the City's fiscal outlook, status of current major City goals, and other background information that will shape the City's budget The Council will then discuss, set and prioritize goals for 1999 -01. These will guide the preparation of the Preliminary Financial Plan, which the CAO will issue in May of 1999. This will be followed by extensive budget workshops and public hearings, leading to Council adoption of the budget by June 30, 1999. Yonr important role. You (and your group if applicable) are an essential part of this process, and we invite your participation. We need to hear from you if the City is to develop goals for the next two years that best reflect where we should be headed in our facilities, programs and operations. Where to from here? Please share this letter with the members of your organization, and start putting together your suggested Community Forum Tuesday, January 12, 1999 7:00 to 11:00 PM The Forum 751 Marsh Street Council Goal -Setting Workshop Saturday, January 30, 1999 8 :30 AM to 4:00 PM City /County Library Community Room 995 Palm Street goals. These should be submitted to the Department of Finance by Monday, January 4 1999. It will be especially helpful if your written comments could succinctly address what you are requesting for the community, why it is important to San Luis Obispo, and any creative ideas you have about how to achieve it--given limited resources and competing priorities —such as alternative approaches, opportunities for partnering with others, or shared resources. We welcome your attendance at both the community foruan and the goal- setting workshop. If you have any questions about the City's budget process and your important role in it, please call us at 781 -7114. Sincerely, Allen Settle, Mayor John Dunn, City Administrative Officer ®The City of San Luis pbispo is aorrmritted to including disabled persons in all of our services, programs and activities. Teleom mwileavons Device for the Deaf (805) 781 -7410. ;Zmemoizanlbum November 13, 1998 TO: Advisory Body Chaos FROM: Allen Settle, Mayor John Dunn, City Administrative Officer SUBJECT: 1999 -01 FINANCIAL PLAN —AND YOUR IMPORTANT ROLE IN IT As we discussed at our recent Mayor /Council Advisory Body Chair quarterly meeting, it is time for Council advisory bodies to begin preparing their recommended goals for Council consideration as part of the 1999 -01 Financial Plan process. Advisory body recommendations are a very important part of this process. For example, as the Finance Director pointed -out at the meeting, virtually every advisory body recommendation we received as part of this process two years ago was included in some way in the 1997 -99 Financial Plan. Council goals, by their nature, tend to be broader in scope than the work programs developed by advisory bodies. In your recommendations to the Council, please consider what your believe would be appropriate City goals, both from the perspective of your advisory body's purpose, as well as any perceived community -wide concerns and needs. - Enclosed for your information is a copy of the hand -out from our October 8 meeting summarizing City's goal - setting and budget process, as well as the City's `Budget -in -Brief' which includes the current major City goals for 1997 -99. Goal-Setting Process for 1999 -01. On Tuesday, December 8, the Council will be reviewing the process we will use in setting goals for the next two years. We will provide you with a copy of the agenda report, and we encourage you to attend the meeting, and offer any thoughts or suggestions you may have about the process. Where to from here? Please share this memorandum and the enclosed materials with your fellow advisory body members, and start putting together your suggested goals. Budget Workshop - Goal -Setting and Budget Process Tuesday, December 8, 1998 7:00 to 10:00 PM Council Chambers 990 Palm Street Community Forum Tuesday, January 12, 1999 7b0 to 11:00 PM The Forum 751 Marsh Street Council Goal -Setting Workshop Saturday, January 30,1999 8:30 AM to 4:00 PM City /County Library Community Room 995 Palm Street These should be submitted to the Department of Finance by Monday, January 4, 1999. It will be especially helpful if your written comments could succinctly address what you are requesting for the community, why it is important to San Luis Obispo, and any creative ideas you have about how to achieve it—given limited resources and competing priorities — such as alternative approaches, opportunities for partnering with others, or shared resources. We welcome your attendance at the budget workshop on the process itself, the community forum and the goal- setting workshop. If you have any questions about the City budget process and your important role in it, please call John Dunn at 781 -7114 or Bill Statler at 781 -7125. 0 � Cc City Cmmcil. DMam=t Heads and Advisory Body Sniff Liaisons Id4 4-1y-1A i city of san lulls ompo Community Budget Bulletin What are the most important things for the City to accomplish over the next two. years? The Council Needs Your Help in Answering This Question! Next June, the Council will approve a two -year budget for 1999 -2001 that will truly bring the City into the 21 St Century. Almost uniquely among cities, the San Luis Obispo municipal budget is based on goals established by the Council before the staff begins preparing the preliminary budget. The Council develops these goals only after hearing from our citizens, representatives of community organizations and Council advisory bodies. The Council wants to establish goals which lead to the kind of community we want to become, and which give the greatest opportunity for our citizens and visitors to lead good lives. Because our resources are limited, we need to hear from our citizens to know what is truly needed in the community. We need your help in three ways: • Please fill out and return to us the brief questionnaire on the reverse side of this bulletin. You can mail it, fax it, email it or drop it by any City office. • Please attend our Community Forum on January 12, 1999, beginning at 7:00 PM at The Form on 751 Marsh Street. The sole purpose of the meeting is for the Council to listen to your suggested City goals and those of other citizens, community groups and Council advisory bodies. • Please know that you are invited to attend the City Council's goal- setting workshop on January 30, 1999, 8:30 AM to 4:00 PM, where the Council's purpose will be to create the City's major goals for the next two years. If you have any questions about the City's goal - setting process and budget process, please call us at (805) 781 -7125. What are the most important things for the City to accomplish over the next two years? Please share with as the three to five things that you believe should be the City of San Luis Obispo's most important, highest priority goals to achieve during 1999 -01: Q 0 0 You can share your goals with us in several ways: • Mail it. Postage is prepaid. Just fold and staple this bulletin. • Fax it. Our fax number is 781 -7401. • Email it. bstatler @ci.san- luis-obispo.ca.us • Drop it by. Any City office. NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES BUSINESS REPLY MAIL FIRST1'AASS MAIL PERMIT NO. 369 SAN LUIS OBISPO, CA POSTAGE VALL BE PAID BY ADDRESSEE CITY OF SAN W IS OBISPO CITY ADMINISTRATIVE OFRCER 990 PALM ST SAN WIS OBISPO CA 93401-9938 18' Ild�udlnlodlluuullldulJuullJnlulnll Fiscal Year 1998 -99 Budget -In -Brief 1997 -99 Financial Plan Supplement July 1, 1998 l� the purpose of this "budget -in -brief" is to summarize the second year of the City's 1997 -99 Financial Plan by highlighting the City's budget process, key budget features, major City goals and basic 'budget facts." If you have any questions regarding the City's budget, or would like to obtain a complete copy of the 1997 -99 Financial Plan or the 1998 -99 Supplement, please contact the Department of Finance at 781 -7130. Purpose of the City's Two Year Financial Plan the fundamental purpose of the City's Financial Plan is to link what we want to accomplish for the community with the resources necessary to do so. The City's Financial Plan process does this by: dearly setting major City goals and other important objectives. establishing reasonable timeframes and organizational responsibility for achieving them; and allocating resources for programs and projects. goals at the very beginning of budget preparation. Setting goals and priorities should drive the budget process, not follow it. For this reason, the City began the 1997 -99 Financial Plan process with a series of in -depth goal setting workshops where Council members considered candidate goals presented by community groups, Council advisory bodies and interested individuals; reviewed the City's fiscal outlook for the next five years and the status of 1995 -97 goals; presented their individual goals to fellow Council members; and then set and prioritized major goats and work programs for the next two years. This process results in a two -year budget document that emphasizes long range planning, budgeting for results, effective program management and fiscal accountability. While appropriations continue to be made annually under this process, the Financial Plan is the foundation for preparing the budget in the second year. The supplement for 1998 -99 was adopted by the Council on June 16, 1998. Major City Goals inking important objectives with necessary Lzesources requires a process that identifies key City departments and the City Administrative Officer then prepared the Preliminary Financial Plan based on this policy guidance from the Council. A number of budget workshops and hearings followed resulting in final Council adoption of the 1997 -99 Financial Plan on June 17,1997. Financial Plan Policies formally articulated. budget and fiscal policies 11--provide the fundamental framework and foundation for preparing and implementing the Financial Plan. Included in the Financial Plan itself, these policies cover a broad range of areas such as user fee cost recovery goals, enterprise .fund rates, investments, capital improvement management, capital financing and debt management, fund balance and reserves, human resource management, productivity and contracting for services. city of san tuiS.OBISPO 9- fo? Et featunEs Budget Overview The 1997 -99 Financial Plan presents a balanced budget for all of the City's funds. Based on projected revenues and beginning fund balances, adequate resources are available to fund the recommended appropriations while assuring that operating revenues fully cover operating expenditures, and that fund and working capital balances are maintained at minimum policy levels (20% of operating expenditures). The . budget for 1997 -99 fully responds to the results of Council goal- setting. Each of the twenty-two goals set by the Council early in the budget process is reflected in the Financial Plan. • General Fund revenue projections are based on continued improvements in our local economy and assume no further State budget cuts to cities (nor restoration of past acts) over the next two years. The General Fund budget meets basic service infrastructure maintenance needs and preserves essential service levels. It also provides for a limited number of new initiatives in both the operating and capital budgets (see Budget Highlights below). Balancing the budget for 1997 -99, while assuring that adequate resources are allocated to achieve Council goals, was less difficult than it has been in the past. This is largely due to an improving local economy. However, it would not have been possible without the actions the City has taken in the past to improve our long -tens fiscal health; the careful policy decisions made by the Council as the budget was being developed; and the hard work by the staff in performing extensive and detailed reviews of operating and capital expenditures. The Financial Plan is founded on the basic budget preparation framework set by the Council as part of the goal- setting process: limiting operating cost increases and reviewing service levels for expenditure reduction opportunities; developing a capital improvement plan (CIP) that adequately maintains our existing infrastructure and facilities; considering new revenue opportunities as allowed under Proposition 218; and if needed, making strategic use of fund balance and temporarily taking it below policy levels. The Financial Plan reflects all of these principles except for taking fund balances below policy levels — as noted above, the 1997 -99 Financial Plan retains fund balance and wonting capital levels at policy levels Regular Staffing Changes The 1998 -99 budget reflects focused increases in regular staffing (5.5 positions) in order to address major City goals of securing a long -term water supply (1 position) and adequately meeting our infrastructure needs (3.5 positions), as well as to take advantage of law enforcement grant funds to meet public safety needs (1 position). Budget Highlights for 1997 -99 Major operating program changes and CIP projects • Enhanced street seal-coating (an increase of $100,000 in 1997 -98 and $300,000 in 1998 -99). • Preparation of Mid - Higuera street area master plan ($65,000). • Conservation and energy element update ($74,000). • Improved engineering support for managing CIP projects ($260,000 annually starting in 1998 -99; includes 3.5 new regular positions). • Water re -use project study & design ($580,000). • Street reconstruction and resurfacing ($835,000 in 1997 -98 and $1,525,000 in 1998 -99). • Flood protection master plan and improvements ($2.5 million). • Marsh street parking garage expansion ($3.9 million) and parking site acquisition ($1.5 million). • Youth athletic fields ($3.0 million). • Rodriguez adobe restoration ($100,000 in General Fund resources to match developer contribution). • Open space protection ($200,000 annually in General Fund resources). • Information technology improvements: records management ($128,000); financial management ($460,000); and wide area network improvements ($150,000). 9 -so OR city c oats T, d97 -99 Financial Plan sets forth major City goals and other key objectives for the next two years and finks them with the programs, projects and resources necessary to achieve them. Shown below are the major City goals adopted by the Council as 3 an integral part of the Financial Plan process. Detailed work programs setting forth objectives, issues we will face in achieving the goals, action plans and resource requirements have been prepared for each of these goals. Public Utilities • Long -tern water supply development. Meet the City's long -tens water supply needs by. reaching agreement with North County cities on the Nadmiento pipeline and Salinas reservoir projects; and completing phase 1 of the water reuse project Transportation • Street and sidewalk maintenance. Complete an inventory of current street and sidewalk conditions, update the City's pavement management plan as needed, and continue ongoing maintenance of City streets and sidewalks. • Flood protection. Adopt and begin implementing flood management plans for creeks, open channels and storm drainage systems. Transit service. Maintain existing level of service provided by the City's transit system. • Parking system improvements. Begin building the Marsh street parking garage expansion. re, . Youth athletic fields. Develop a sports facilities complex, subject to resolving Cultural g neighborhood and environmental concerns. Social Services Parks and recreation element implementation. Continue implementing the parks and recreation element of the General Plan, emphasizing neighborhood parks, at-risk youth, youth and seniors. Community • Airport area annexation. Prepare the prerequisite specific plan and related Development infrastructure master plans in order to implement the General Plan goal of annexing the airport area to the City. • Madonna plaza and central coast mail revitalization. Proactively work to revitalize Madonna Plaza and the Central Coast Mall. • Economic development. Continue implementing the economic development program, including focused business recruitment efforts consistent with the results of the targeted industry duster study. • Neighborhood preservation. Continue neighborhood preservation efforts relating to noise, traffic and maintenance; continue to support efforts encouraging additional "on-campus" student housing; and evaluate ways of improving neighborhood participation in the development review process. General • Long -term fiscal health. Protect the City's long -term fiscal health by maintaining Government a balanced budget, an adequate capital improvement plan and an adequate fund balance. Community partnerships. Encourage creating non -profit corporations for projects such as open space acquisition and adobe preservation. 9 .s/ nancial plan supplement fact$ 4 Total operating programs a *q-3 Capital improvement plan 13.9 Debt service 62 Function- 11 Public safety $10.6 31% Public utilities 6.7 20% Transportation 3.9 11% Leisure, cultural & social services 3.9 11% Community development 3.3 10% General government 5.9 17% - All Funds Staffing $22.0 64% Contract services 6.2 18% Supplies 5.8 17% Uinnr nnnitnl 0.3 1 % - All Funds Water reuse shidy & design 1998-99 % of . Water treatment improvements 0.5 0.5 Water distribution system 2.5 12 Sewer system improvements 1.3 1.0 Utilities offices - 0.9 Pavement resurfacing 0.8 1.5 Creek bank stabilization 0.5 - Flood mgt plan & improvements 0.4 1.1 Disabled access improvements 0.3 02 Marsh Street garage expansion 3.9 - Parking site acquisition 1.5 - Youth athletic fields 3.0 - Adobe restoration 02 02 Park & swim center improvements 0.2 0.7 Open space acquisition 0.3 02 Finance management system 0.2 02 Other technology improvements 0.3 02 Positions By Function - All Funds Funding Sources .(in millions) General fund $27.5 J51% Other governmental funds " 2.8 Enterprise funds 24.1 Operating Programs By Function - General Fund Contract services Supplies & minor capital Reimbursed expenditure - General Fund . $18.1 72% 2.9 12% 4.1 16% Tnn Dnien Gevemmental Fund Revenues ** 1998-99 % of . Public safety $10.6 48% Public utilities - - Transportation 2.1 9% Leisure, cultural & social services 3.4 15% Community development 3.0 13% General aovemment 3.4 15% Contract services Supplies & minor capital Reimbursed expenditure - General Fund . $18.1 72% 2.9 12% 4.1 16% Tnn Dnien Gevemmental Fund Revenues ** -6e hmOS KYda Oe +L WWWM. .CVM PlWaonomw Wa moms Reaular Position Chanaes - All Funds Public safety 135.0 40 1998-99 % of . Public utilities 56.5 17% Public utilities - 1.0 Sales tax $7.3 24% Property tax 4.1 14% Transient occupancy tax 3.1 10% Utility users tax 2.9 10% Motor vehicle in -lieu (VLF) 1.8 6% Business tax 1.1 4% Franchise fees 1.0 3% Community dev block grant 0.9 3% Gasoline tax subventions 0.8 3% These top nine revenues account for about 80% of Governmental Fund revenues A wide vadeW of fees account for another 90A summarized as follows. Development review fees $1.1 4% Recreation fees 0.9 3% Other service charges 0.7 2% odw govemmentat fund revenues indude interest earnings, grants, tines and sale of surplus property. -6e hmOS KYda Oe +L WWWM. .CVM PlWaonomw Wa moms Reaular Position Chanaes - All Funds Public safety 135.0 40 Puouc sarety -� - Public utilities 56.5 17% Public utilities - 1.0 Transportation 23.5 7% Transportation - - Leisure, cultural & social services 29.0 9% Leisure, cultural & social services - - Community development 36.6 11% Community development 3.5 - General aovemment 53A 16% General government 9- s 2 4 Community Forum Notes —Who, What, Why and How • .. What do they propose? Why? Sow? • rg . What do they propose? Why? How? Organ What do they propose? Why? How? Community Forum Notes —Who, What, Why and How Organ What do they propose? Why? How? What do they propose? Why? How? What do they propose? why? How? C Community Forum Notes= VYho,._What, Why and flow gr..- - - - -- -- - What do they propose? 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Community Forum Notes =Who, What, Why_ and_ HoW Organ W W& do they propose? - -- MV? - - Boiv? - - - -- - — -- R*hq! do they Propose? Sow ?' - - - - - -- - TIM - - - -- - Of Sow? - - - -- -- - - - — _ RECEIVED MEETind Z -� AGENDA AN 1 2.1999 DATE ITEM # 3 D CITY COUNCIL Ti LUI BISPO COUNTY Y NY POST OFFICE BOX 430 Dear Mr. Stater, SAN LUIS OBISPO, CALIFORNI RRUNCN. 805 - 5a4=15 low ZflN DIR J2MRE CHIEF MEY 42" DIR (� � D CHF /) Sd�CG ►U .E3'QTIL lim Thank you for the opportunity to respond to your request for input to the goal setting process for the city budget. We hope our comments will assist you as you set priorities for city expenditures. The two areas that our organization would like to see the city place as high priority areas are youth activities and the cultural life of the community. The San Luis Obispo County Youth Symphony serves both. The Youth Symphony has been providing a unique orchestral experience for young musicians between the ages of eight and eighteen for nearly thirty-five years. The three concerts they present each season enable these young people to contribute to and enhance the cultural life of the city. In the past five years, the City of San Luis Obispo has assisted us with grant monies. We would like the City of San Luis Obispo to consider becoming a permanent sponsor of our annual concert at the Cal Poly Theater with an annual grant of $2500.00. Such a grant would underwrite all of the major expenses that Youth Symphony must assume to perform in this facility. Our target populations are families wishing to expose their children to the local performing arts as well as community members who appreciate classical and contemporary music especially our senior citizens. The City of San Luis Obispo could be recognized for this grant in the concert program as well as in all promotional material, collateral advertisements and mentioned in TV and radio ads. There is no other program like the Youth Symphony in San Luis Obispo County. We are dedicated to bringing to the people of this region the joy and beauty of experiencing live performances of some of the world's greatest music. Youth Symphony musicians bring the experience they gain into their college orchestras and as adults they will bring this their musical gifts to the communities where they live and work. Thank you for including us in your budget planning process. Sincerely, ti- yt SAN LUIS OBISPO COUNTY YOUTH SYMPHC Y POST OFFICE BOX 430 • SAN LUIS OBISPO, CALIFORNIA 93406 • 805 - 54 MUSIC SAN LUIS OBISPO COUNTY YOUTH SYMPHONY FACT SHEET ORGANIZATION ADDRESS: POST OFFICE BOX 430 SAN LUIS OBISPO, CA. 93406 PHONE: 54 -MUSIC (546 -8742) NUMBER OF PARTICIPANTS NEARLY 100 STUDENTS AGES 8 TO 18 PARTICIPATE IN THREE ENSEMBLES: PREPARATORY STRINGS JUNIOR STRINGS YOUTH SYMPHONY HISTORY FOUNDED BY DR. WACHTANG KORISHELI IN 1965 ORIGINAL REHEARSALS LOCATED IN OLD CUESTA COLLEGE ARMY BARRACKS 1967 MOVED TO SAN LUIS JUNIOR HIGH LATER TO LAGUNA JUNIOR HIGH SCHOOL PRESENT LOCATION SAN LUIS HIGH SCHOOL MUSIC BUILDING 1979 DR. KORISHELI PASSED THE BATON TO LOAL DAVIS 1979 CAROL KERSTEN FOUNDED JUNIOR STRINGS 1983 CAROL KERSTEN FOUNDED PREPARATORY STRINGS 1995 MARKS 30TH ANNIVERSARY SEASON PAST CONDUCTORS OF YOUTH SYMPHONY INCLUDE ELIZABETH SMITH CRAIG RUSSEL GINETTE REITZ MICHAEL NOWAK GARY LAMPRECHT MARY ELLIOTT -JAMES JANE SULLIVAN JAMES GARD PRESENT CONDUCTORS: DR. FRED LAU -YOUTH SYMPHONY CAROL KERSTEN-JR. STRINGS AND PREP STRINGS COACHES: AL STREDER:BRASS AMANDA WHITING:SYMPHONY STRINGS AND JR STRINGS VIOLAS KEN HUSTAD: JR STRINGS CELLOS AND SYMPHONY STRINGS JUDY BEAVER AND EDIE ANELLWR. STRINGS VIOLINS .• J AUDITIONS IN SEPTEMBER REHEARSALS WEEKLY- MONDAY EVENINGS 5:OOPM TO 7:OOPM FOR JUNIOR STRINGS AND YOUTH SYMPHONY. PREPARATORY STRINGS: MONDAY EVENINGS 4:OOPM TO 4:45PM REHEARSAL LOCATION: SAN LUIS HIGH SCHOOL THREE PUBLIC CONCERTS ARE PERFORMED EACH SEASON. VENUES INCLUDE SUCH SITES AS THE PERFORMING ARTS CENTER, THE CAL POLY THEATER AND NEW LIFE CHURCH OF THE NAZARENE EACH. TICKETS ARE AFFORDABLE, GENERALLY IN THE $5.00 TO $10.00 RANGE. EACH CONCERT IS FOLLOWED BY A RECEPTION TO WHICH ALL CONCERT GOERS ARE INVITED TO ENJOY REFRESHMENTS AND MEET THE MUSICIANS AND CONDUCTORS. ACTIVITIES YOUTH SYMPHONY CONCERTS OPPORTUNITIES TO PLAY IN ENSEMBLES PLAY IN LARGE AND SMALL GROUPS/ SECTIONALS LEARN DIFFERENT STYLES OF MUSIC EXPERIENCE DIFFERENT COMPOSERS PROGRESS THROUGH VARIOUS LEVELS OF ABILITY PARTICIPATE IN BERKELEY YOUTH SYMPHONY FESTIVAL ANNUAL CONCERTO COMPETITION BRASS PLAYERS AND LOW STRING (VIOLA, BASS) ARE NEEDED. ADDITIONAL FUNDS ARE ALWAYS NEEDED ANNUAL FUND RAISERS MOVE -A- LONG- A- THON- OCTOBER SEE'S HOLIDAY CANDY SALE- DECEMBER AMERICAN GIRL PAST TIMES PARTY -MAY TUITION JUNIOR STRINGS AND YOUTH SYMPHONY - $360.00 PER YEAR PREPARATORY STRINGS - $250.00 PER YEAR SCHOLARSHIPS AVAILABLE TUITION ACCOUNTS FOR ABOUT HALF OF THE PROGRAM COSTS AND COMMUNITY SUPPORT MAKES UP THE DIFFERENCE. NO CHILD IS DENIED ACCESS TO THE PROGRAM DUE TO FINANCIAL NEED. / r . RECEIVED JAN 1 2...1999 s�o CITY CouNCIL - f, ' o The Graphic Corder .Beebee Street, Son Luis Obispo 343 -b844 emKCIL MUD DIR L9" DIR MAD GkXCAO GIARE CHIEF Er4TMRNEY ISM DIR UtLERKIORIO G"OUCE CHF O E DI R i1L DIR O a DIR O .i" MEETING AGENDA 3 DATE I'la-iq ITEM# ...- - 0 h 1�1 ; LU �1 CDD DIR FIN DIRAFWDICRHIEF MEETING AGENDA 3 LI9 POLICE CHF ITEM # U11 MR WX DM Q Day Housing Authors y e Pet Post Office Box 1289 San Luis Obispo CA 93406 -1289 of the City of (805) 543 -4478 fax (805) 543 -4992 San Luis Obispo Executive Director - Secretary January 12, 1998 George J. Moylan Mr. John Dunn City Administrative officer ERECEIVED Mr. Bill Statler Director of Finance City of San Luis Obispo Department of Finance 990 Palm Street San Luis Obispo, CA 93401 Dear John and Bill: The enclosed article appeared in the business section of the Los Angles Times on Saturday, January 9. It's appearance could not have been a more appropriate response to my letter of December 30th to the two of you relative to the City Council's goal setting meetings. While I will be the first to concede it's difficult to compare the needs of a major metropolitan area to our situation there are several similarities and the solutions being looked to in Silicon Valley are ones that we need to consider. It is true that the median home price in the City of San Luis Obispo is not $304,000. However, we are not far behind. According to the San Luis Obispo Board of Realtors the average, they don't do median, price of a single family home (including condominiums). for year ending December 31, 1997 was $225,886. The average for 1998 has not as yet been calculated but given the inflation in the housing market a 10% increase would not be difficult to predict. Moreover, the median family income according to the Federal government is $46,200 within our county, $27,800 per year lower than the $74,000 median income reported for Silicon Valley. That additional $27,800 when converted to housing dollars will provide for an extra $105,000 in mortgage amounts at a 7% 30 -year fixed interest rate. A rate well within today's market range. Thus a very strong argument can be made that the affordability index is even lower here than in Santa Clara county. However, the difference appears to be that business and government are working together to do something about the problem in San Jose. No such effort appears to be happening here. While not those of government the efforts of the Silicon valley Manufacturing Group in building thousands of units of affordable housing and establishing a $20 million housing trust fund are refreshing. I don't expect similar action from our local business sector, but I would hope that the City Council will recognize the affordable housing problem we as a community are facing and take a more active role in orchestrating a solution to the problem. Sincerely, George t. Moylan Executive Director cc: Dave Booker Steve Nelson {loci {399g:wm Puntdnated by down : :; svlth divtsse.coeLGane to tackle' the slalttS a2.' mar{y largo oaWPamea: ' g Y.. t� : strength in :having . a diverse: and :: Internetlonal work force miyc R=cessor maker b Ajanitarmakings7to Me�rywhUe eonie a induet&lika aodr of of envi y,that floors 9uaUty a XfyaLty "education apd'. the John 1 SantaNeece c41ef aoecutive of in Silicon Valley is :egt minimum wage justabout " a satyr f �standatda' Ratsened, erpotd : soft, . whet a[e sometimes called iQ8"� be`�epprt by the San J9ae ate key to economic Counties BW g , Tredea Coumcll the' .lone labor mP Wle." Garde said Despite agreemenron C v, , r 1 success..::" said state Sen. John Vas- 8�& PQ1icy gi9up concallm (D -Santa Clara). _ resentaUve on 'JolnL� 1�eptt¢� a j t .,improve Ute setiocla . a r TT ■ ■ . q •Partkvlar(Y hard lilt by the dearth of affordable housing and a group, working within broad . the schools or 'with. sw ray y Y x.. - high living Coate have been Latinos, a w®tuni cmli won: � � has Planning agencies' Ptaure:.for, .. `They invest millions cl bringpeople in from 'othe i�ondaaed hom C! .' - that L aiea Which includes Santa whose thigh school graduation rate °� X56*- -only slightly "the - building thou ends: of units usf; of fordsgle hou@Ing And ft recently : to 811 their. jobs, 'whP,n ' invent in mmmutil 1" CJara Coimtvsend POMM- -,three-- WOF than rate for,Latime kt "the otarted•`building:a S� miIDon trust. the .. The Service EmP1eY ad�ylnidgrAOUa)tieslsmkeybareme Cta9 bL �c eucceas kise in the rest-of the. st"... • In SaotwC*R C&mtY. 31% of fund: to assist fhpt4mehQme'buy-, era, .a devekrP effwdable rental tiorW union ,Lorall$77 abouit 2 300 jardtors who ktetryeer:.�heayasg8.wagerosetc ' y 60`%`ebove Lhettatlopai ay.' u '�ASa �d the worst P�1ereUngforirat8dmogesUmr "Ail the 1pdus,- units andhomeleoa The';gnaup s ficd8llog =ucetlon computer minpaniea:lfa :Mike Garcia takes e'dipr a Vie" Puslneae0 invmstmeat! Cat boo�g "� loyment remained dl� eve t�pifal f ti inftfat�ve w�J!' bonc¢n&Ate �;an teaeberteavitroenEandtetgnUoa ''.igdu9hy'a.community SP lowgndvlclerttCHnedeclined $Id job•gtroivth`.`of shout �� 9�itY Of life deterlorate4: that' home° _tsapite[' walks out Ur@ Qur;gverallgoalleelw�ys.kupaf kids• Jq} laa��ohe ;while Also:rec it took Be years, tc mmt:high.tecti employe t: Arai dPs7pysgarply from 1997.'x: gZ00d .regjonalt :: door ' Renton ®id . Lewmalrassaytheyare,worklag. o that.wit>; intePnatioiuU tompa es ttiere la. inherent' uninn1w :mntracfags. fh health' bene9te to W notable holdouts in' {loci {399g:wm Puntdnated by down : :; svlth divtsse.coeLGane to tackle' the slalttS a2.' mar{y largo oaWPamea: ' g Y.. t� : strength in :having . a diverse: and :: Internetlonal work force miyc R=cessor maker b Ajanitarmakings7to Me�rywhUe eonie a induet&lika aodr of of envi y,that floors 9uaUty a XfyaLty "education apd'. the John 1 SantaNeece c41ef aoecutive of in Silicon Valley is :egt minimum wage justabout " a satyr f �standatda' Ratsened, erpotd : soft, . whet a[e sometimes called iQ8"� be`�epprt by the San J9ae ate key to economic Counties BW g , Tredea Coumcll the' .lone labor mP Wle." Garde said Despite agreemenron C v, , r 1 success..::" said state Sen. John Vas- 8�& PQ1icy gi9up concallm (D -Santa Clara). _ resentaUve on 'JolnL� 1�eptt¢� a j t .,improve Ute setiocla . a a ioy The SUioon Valley Manufacnrmg ae wo jdng ccopaed�mato solve services and to provide fordable housing, -ktflatign.atjusted:. ni Sao.Jose -based Uade or- o °Il 'Po@� :. common n. .. :. . Pew• ovfaerd�.� eonsens to ,move lower =manor wcrkM a K h on of loeal�prlvate.se�tcWr ti a: Qecltned S %Isom 1991' {01997 the 'c jobs, was Instrumental in enacting § omle�&Qupea aZ %ilsestetewide.:, half..cent hues seem kutg Most compaNms.au)d,lgoat People .Uvlgg tl e 1309 50D seems elnv m sales fm hike ki Santa ja s , cif OWs7de*jh� tech in b industry- Clara County that *111 raise $1.5 In. the private sector are almost : exclusively focused on their bottom °[ht Silicon Valley). a I were 25 %•above rye;. ♦♦lt"N !+�; naUeonae('AV brrt:tlie kcal nod:: • � over�NRe Ym'ra .tor transit rr l °OVeegent&.:. line," sold Leo E. Chavez, chancellor of Foothill-De Coumnrniity` wage ie Probably E18; an ��ng1e person, and for a wasgff%higher; nt r .Anra z. Vi'e.rrecognize that our. eucxess; "' College Dlsn'lct:and a boaid rtiember . F3 r 1 " lol'amllleea the Ined(yn{ also lead@ t9 tliallengea the of Joint Venhre .fouratleast$25anheir ; Tedesco.. San Jose S71ia .said + b .area inoome of ,about Sf4,000 caWd•.- greuip'a cbie[AM.W=ve. Cad Cuar-. aH 3fl8 %af Siliewq Valley boos -we're going to addrer those: Victor, Garza, chehman of.' Ls Haza Round 'Fe6W a Chamber of Commerce ch tive who criticized some u ;�N&4�aldasthe'to iaPinc�me' , . ' community, challenges taUerthanwith gou�iRSanJua U >efgglagthatb>sinesaotfen CS forlettingta terb8mhaU. lo. �vel)W e®s ; ! Uann8of aUm yo-in . r : pv help emkcefherr _rent in.at�st nglnd j_R S #T &ADH7 T.9 n.e.ARy Santa Clara County's housing market, though booming, is out of reach for most households, a regional 7M E r Silicon Valley: Growing Apart ;940- 999 Economic Inequality and environmental growing pains are endangering Silicon Valley's reputation for Innovation and expansion. A new report on'regonal development may convince competing high-tech areas —from Boston to Los Angeles —to reevaluate their emulation of the Silicon Malley model.. but the Income Gap :ls Widening H .:. :..end emeoemershlp Ati@rage employee wage, In Incomes of'Sariia Clara 'County households, Remop Elude 1998 dollars,'In thousands: adjusted to represent a household of four, Percentage . of residences In 1997 constant dollars, in thousands: affordable Mr households, based $140 eatb on median Income' 54s �t Imam, tle,adpe raw WA High -Tech Model of Inconsistency between haves companies can leave." ■ Quality of life: Community is plagued by a gap While such problems are not unique to and have-nots involving housing, jobs and other issues. Silicon Valley. the area's vast wealth and luster of innovation mean that the re- By CHARLES MILLER TIMES STAFF WRITER SAN JOSE —One of California's key engines of economic growth — Silicon Val - ley —is in danger of stanmg bemuse of a severe shortage of affordable housing and a widening income and education gap between rich and poor, whiles and mmor- itim according to a report to be released Sunday. •These issues are on the minds of virtually everyone. They really see a threat." said Doug Henton, research di- rector of the report. produced for the nonprofit Joint . Venture: Silicon Valley Network.. "Companies are mobile too. sponse of regional government and high - tech industries could profoundly influence other areas — including I.os Angeles, New York, Boston and Austin, Texas —that look to expand their economies using the Silicon Valley model, said Ruben Barrales, Joint Venture's chief executive- The " 1999 Index of Silicon Valley" notes Please see SIWC:ON, C3 I MEETING AGENDA DATE___ 101-99 ITEM # 3 From: Sam Blakeslee <samslo @thegrid.net> To: "' asettle®ci.san- luis- obispo.ca.us'" <asettle ®ci.s... Date: 1/11/99 4:37pm Subject: Downtown Vitalization Thank you for the opportunity to provide input to your two -year plan. As a long -time resident of SLO I am very concerned about SLO's diminishing cultural, economic, and social role in our county. SLO faces the real risk of "Ventura - ization" - i.e. the loss of its downtown due to aggressive economic development of nearby malls. I believe that it is imperative that SLO solve its parking and circulation problems if it is to foster a pedestrian- friendly and dynamic downtown core which will serve as a magnet to tourists and residents throughout the county. The best way to solve these problems is to move forward with the Palm II structure. The next two -year budget should include funds for the Palm II structure. If the city fails to make progress on this matter in the near future we may find that we live in a declining city surrounded by Eagle Hardware stores and outlet malls. Sincerely, Sam Blakeslee Blakeslee & Blakeslee (544 -4409) 0 COpL 14p E - ✓d'ACAO -GWMRNEY -afIN DIR ZMNR Inn"� s- 6tiiir.ODt -�fdl8 DiR i A Ni 1 1 1999 SLO CITY COUNCIL 1NG AGENDA -2 ITEM #= J20CAO -!'FIN DIR ArACAO };'FIRE CHIEF ATTORNEY. JB'PW DIR MEMO P- CLERWORIG XrPOLICE CIIF D T•TE ,A -' REC DIR aw atTIL DIR Date: January 11, 1999 ERs DIR To: Mayor Allen Sep e p j -Council Members John Ewan, Jan Howell Marx and Dave Romero )�� From Ken Schwartz, ' Copies: John Dunn, ian, Wendy George, Bill Slater, Arnold Jonas, Mike McCluskey and Jeff Jorgensen Re: City Goals You can tell by the length of the attachment that I have been giving some thought to the Goals Program we are about to undertake. I want to get my oar in early. First, what you will read are my thoughts on goals that are expanded sufficiently to fully define what an action program will need to be in order to carry out a particular goal- I have done this because I am fearful that the "two year budget cycle" may be causing people to think in short term projects. I think we have several major long term projects we must get underway, particularly in the downtown, or we are going to loose the ball gam- Secondly, I have not listed goals which are by their face, goals that appear to be pretty well, entrenched in a continuing effort to meet a need; e.g. supplemental water supply; sports playing fields; open space acquisitions, and utilities upgrading. Thirdly, the goals I have listed do not appear in a priority order. If you were to nail me for the highest priority in my thinking, it would be the those I list under Strengthen Downtown as the City's Center. The fact that the process to accomplish this goal begins with expanding our City Hall will fiighten some, but that's the fast domino that must be pushed over to begin a series of sequential steps necessary to clear out inefficient surface parking lots to gain new land on which to build new retail- commercial projects to enhance the economic viability of downtown and maintain a compact urban core. Thank you for taking the time to read this. ,IAN 1 1 1999 SLO CITY COUNCIL Draft 2: Goals for 1999 - 2001 Ken Schwartz December 31, 1998 "We can never become what we need to be by remaining what we are." Max DePree, former Herman Miller chairman, from his book Leadership is an Art Goal Legislative Preparedness Objective Adopt an aggressive legislative program which strengthens local government, promotes city goals and defends City against legislative actions by State and Federal governments that would weaken local government and/or take away traditional revenue sources. Action Plan • Establish a study session schedule during which the Council with staff assistance shall develop a legislative program • Meet at least once each year with local representatives in the State Senate and the State Assembly to discuss and promote the City's legislative program • Promote San Luis Obispo legislative programs as well as City positions vis -a -vis legislation pending before the State Legislature through participation in League of California Cities legislative programs. • Designate the City Attorney to monitor pending legislation and to place on the Council agenda from time to time recommended actions which are in keeping with the Council's adopted legislative program • Meet at least once a year with the member of Congress representing San Luis Obispo to discuss and promote the City's legislative program Goal Urban Design Excellence Objective Improve the urban design quality of San Luis Obispo and the visual image of the city. Action Plan Expand the responsibilities ofthe Architectural Design Commission to encompass the responsibilities of the former Design Review Board. (Historical note: It was assumed that when the ARC was formed and the DRB dissolved that the ARC would automatically take on the DRB's work This has not happened and it appears that the responsibility for urban design decisions has fallen between the cracks.) Require that the ARC establish quarterly meetings for which the agenda shall be solely devoted to urban design issues. Additional meetings to be scheduled as necessary to carry out the objectives of the urban design goal- Require all city departments the work of which manifests itself in some physical form, e.g. Parks & Recreation, Public Works, to commit to ARC review as would private developers. Urban design issues shall include, as a minimum, the following: (a) Municipal signing, e.g. design of street signs, parking signs, sign standards, use of international signing, banners, etc. (b) Location and spacing of street trees; species selection. (c) Street fiuniture such as benches and bus stop enclosures. (d) Sequencing ofthe utility undergroundmg program. (e) Selection and/or approval of lightolier design. (f) Color change proposals for all public structures. (g) Design approval of all new or expanded collector and arterial streets specifically with respect to right ofway width, divider strips, Parkways, landscaping, signmg, lighting, bus stop treatment, etc. Such proposals to be presented in 3 -D model form during design approval process. (h) Design approval of plans for all new parks including remodeling of existing parks. (i) Location of as well as character of public art including fountains. 6) Analysis of major "city entrances" followed by development of a program to improve the character of those entrances with recommendations for actions by both the public and private sectors of the community. (k) Recommendations for revisions to city ordinances or policies which impact on good urban design standards; e.g. the sign ordinance. Goal General Plan Implementation Objective Implement the goals of the City's General Plan and each of its elements in a systematic manner. Action Plan • Require those Council Advisory Bodies who have a responsibility for one or more of the General Plan Elements to schedule study sessions well in advance of the Council's Biaffival Goal Setting Sessions for the purpose of reviewing the status ofthat(those) Element(s); e.g. The Housing Element; The Parks and Open Space Element; The Land Use Element; The Circulation Element, The Seismic Element; etc. • Delegate to Department Heads the responsibility for preparing status reports for each General Plan Element illustrating those goals which have been achieved, those in progress of achievement and those for which little or no progress has been made. Example: Goals established in the Housing Element. • Establish a priority listing of steps in two year increments necessary to carry out goals of each General Plan Element. • Establish a priority listing of Capital Improvement Projects to implement these two-year goals. • Require that these materials be ready for presentation to the City Council and the community at the biannual goals setting session Goal Strengthen Downtown as the City's Center Objective Develop a step by step program to carry out the objectives of the Conceptual Physical Plan for the City's Center to maintain and enhance downtown as the business, shopping, entertainment and cultural center of San Luis Obispo. Action Plan • Adopt a policy establishing that the Parking Enterprise Fund is to be used solely in support of providing public parking in the downtown core until such time that downtown parking supply reaches equity with the parking supply requirements imposed by the municipal code on other commercial, retail, office and public facility land uses. • Complete the addition to the Marsh Street parking garage. • Divide the program to implement the major physical components of the Downtown Concept Plan into three (3) segments two ofwhich embody sizable projects which must be sequentially ordered, and a third segment which contains smaller projects capable of being accomplished ad hoc. Action Plans to accomplish these A, B, C segments follow with the understanding that portions of each of these three segments can, and should be implemented concurrently: • Segment A: Expansion within the Downtown Commercial- Retail Core The major purpose of Segment A is to remove inefficient surface parking lots in order to provide "new" land area on which new public serving commercial - retail and governmental buildings can L be constructed in a manner that allows downtown to maintain a compact urban form. The boundaries of this initial work would include the Court Street Block, major portions of the two blocks bounded by Palm, Osos, Monterey and Chorro Streets, and the old City library. Some second story or higher in -town housing/hostelry would also be provided. 1. Commence a "domino' series of steps necessary to vacate existing land uses to accommodate new uses. a) Authorize proceeding with mothballed plans to renovate and enlarge City Hall. Require parking in -lieu fees of city for any new parking spaces required. b) Commence planning of Palm II, a multipurpose, multilevel structure including parking, office and retail spaces facing Palm, a public plaza next to the City-County hbrary with pedestrian access to Monterey Street, and roof top housing or hostelry. Prepare EIR. c) Raze the old City Iabrary and construct in its place a new wing to City Hall. d) Raze the 955 Morro building after moving Public Works offices to the expanded City Hall. e) Acquire needed private properties facing Palm Street. f) Relocate utilities in Morro Street and abandon Morro between Palm and Monterey. g) Sell or lease segments of public parking lots 43 and # 11 facing Monterey Street for in -fill commercial - retail uses. Require parking in -lieu fees for required parking. h) Develop a program establishing the parameters for an intense commercial -retail use of the Court Street Block (presently public parking lot #6). Land development shall consider on -grade open spaces using the Downtown Center as a model. No on -site parking to be allowed Require parking in -lieu fees for required parking. Stipulate that construction of project shall commence simultaneously with the opening of the parking segment of Palm H. i) Issue an RFP with options for land lease or fee purchase. j) Construct Palm H providing a pedestrian way between Palm and Monterey Streets adjacent to the Palm Theater. k) Moneys generated by actions (g) and (i) above to revert back to Parking Fund Seament B: Expansion of Downtown Cultural Core The major purpose of segment B is to stimulate the development of the embryo cultural center presently located in the Mission Plaza extended quadrant of downtown. As in segment A, development here will be dependent on removing existing surface parking lots in order to generate the land necessm y for new buildings and/or expansions of existing buildings. 1. Prepare necessary plans; respond to public review; perfect plans and construct low level parking structure at Palm and Nipomo (encompassing parking lot # 14 as well as properties at 664 and 658 .Monterey) to serve cultural center and lower end of downtown core. a) Sell or lease parking lot #10 (corner ofHigaera and Nipomo) for commercial - retail use with proceeds reverting back to parking fiord. No on -she parking to be permitted. Require parking in -lieu for parking needs. 2. Work cooperatively with the County Historical Society and the County Board of Supervisors to expand the Historical Museum.. a) Prepare a needs program for a new building surrounding the existing museum. The museum expansion could be accomplished in two distinct construction phases (Reference Downtown Concept per). b) Prepare preliminary architectural plans and construction cost estimates. c) Prepare a shared cost agreement between the Historical Society, the City and the County. Seek grants in support of museum work. d) Commission preparation of contract documents; award bid; and initiate construction after. one, abandoning parking lot #9 and, two, acquiring the residential property facing Broad Street. e) Complete the conversion of the Palm to Broad and Monterey Streets dog leg into a permanent landscaped pedestrian way open only to service and emergency vehicles. 3. Work cooperatively with the Art Association to expand the Art Center. a.) Prepare a needs program for expanding the Art Center by adding to the existing building and/or constructing a new building segment located across Broad Street as shown in the Downtown Concept Plan. b.) Prepare preliminary architectural plans and construction cost estimates. c.) Prepare a shared cost agreement between the Art Association and the City. Seek grants in support of Center expansion. d.) Commission preparation of contract documents; award bid; and initiate construction after abandoning parking lot 915 at the comer of Monterey and Broad Streets. e.) Convert Broad Street from Monterey to Higuera to a landscaped pedestrian way open only to service and emergency vehicles. 4. Work cooperatively with the Little Theater to build a permanent theater within the area encompassed by San Luis Obispo Creek, Nrpomo Street, Palm Street, and Broad Street projected to Palm a) Acquire an appropriate sized site. 4 b) Prepare preliminary architectural plans and construction cost estimates. c) Prepare shared cost agreements between the Little Theater and the City based on shared use of the theater for meetings/presentations by community groups such as the Ifistorical Society, the Art Center, the Children's Museum, the Downtown Association, the Chamber of Commerce as well as the City itself d) Commission preparation of contract documents, award bid; and initiate construction 5. Work cooperatively with the Children's Museum to complete renovation and additions to the Museum at Nrpomo and Monterey. Seement C: Proceed with Specific Downtown Proiects Capable of Ad hoc Implementation The major purpose of segment C is to identify projects that can be implemented independently of the segments A & B and for which significant public interest and service would be achieved 1. Complete Creek Walk project between Broad and Nzpomo Streets. a). Approve contract documents prepared by FIRMA, call for bids, award construction contract and complete project along with two Art in Public Places works. 2. Convert Broad and Monterey Streets from Pahn Street to Broad Street into a one -way dogleg. a) Divert north moving traffic on Broad to use Nipomo Street. b) Change parallel parking within dogleg to two hour metered diagonal parking on the Mission side of the street. c) Erect a well designed sign mounted in a landscaped element at Palm and Broad announcing: "Entry to Mission Plaza and Mission San Luis Obispo de Tolosa, San Luis Obispo Art Center, County ITistorical Museum, and San Luis Obispo Downtown." (Note: this landscaped element could be a candidate for an art in public places she. d) Conduct a one -year study of traffic movements to insure that the dogleg functions satisfactorily. Follow up work program: e) Acquire property at 975 Broad Street. f) Remove parking from dogleg upon completion of Palm- Nipomo parking structure. g) Redesign dogleg pavement integrating sidewalks and street surfaces into one plane by removing curbs and gutters and carrying drainage in centerline swale. Pavement surface to conform with Mission Plaza pavement pattern. Create Monterey Plaza; convert Monterey Street from Santa Rosa to Osos Streets into a convertible street / public purpose plaza. a) Devise a plan which allows for Monterey Street to be closed to vehicular traffic on special occasions to provide for a large multipurpose public gathering place. (Street closure examples: Thursday night Farmers' Market; Mission Plaza Special Events.) b) Seek County cooperation in allowing portions of the County Goverment Center site facing Monterey Street to be integrated into Monterey Plaza. c) Remove curbs and gutters between Santa Rosa and Osos Streets and create one surface plane draining into a centerline swale. Design pavement patterns and/or surface textures for visual interest, but also to designate travel lanes and parking bays for normal vehicular use. d) Consider how parking meter stanchions could be reduced or eliminated in favor of another parking control method. 4. Create a Downtown Multimodal Transit Center a) Resurrect the program originally proposed for one transit center located within the block bounded by Monterey, Morro, Ifiguera and Santa Rosa Streets which would serve as a terminus and transfer point for all bus systems serving San Luis Obispo. b) Reinstate negotiations for the purchase of a site with some cost sharing for removal of contamination. c) Develop preliminary plans and cost estimates for the transit center,; make EIR determination. d) Work to obtain financing from appropriate State and Federal agencies for (a) the removal of contaminates, and (b) the construction of the transit center itself e) Complete contract documents, bid, execute building contract and construct facility. f) Move other downtown transit terminals to new central facility. Goal: Strengthen Relationshins with Cal Poly Objective: Obtain increased Cal Poly understanding and cooperation in solving problems as well as exploring opportunities generated by the adjacency of the university campus with the City. Action Plan • Explore potential benefits -costs of Cal Poly annexation to the City. • Continue existing roles in promoting the Performing Arts Center. • Continue to offer the City as a learning laboratory to students and faculty. • Determine some fair share on- campus housing responsibility for Cal Poly in order to cope with community housing shortage generated by student population growth since the construction of the last campus residence halls. • Continue mutual aid agreements. • Encourage Cal Poly to purchase farm and ranch properties within the City's designated greenbelt as a means of replacing campus agricultural lands lost to expansion of the academic core, sports facilities and/or housing as well as expansions in the agricultural programs themselves. • Periodically update City - campus agreements with respect to water supply and wastewater agreements. • Reduce to the degree possible, student dependency on the automobile for city- campus travel. • Improve understanding of citizenship and neighborly responsibilities amongst students who choose to live within the city. • Promote faculty and student research projects which offer potential for expanding local commercial and industrial activities within the city. • Encourage periodic visitations by city business and government groups to the campus patterned after the successful Chamber of Commerce sponsored programs within the city. I Aewise, campus administrative and faculty groups could be introduced to local businesses and government facilities. Goal: Y2k Compliance Objective: hum that all city operations dependent on computer hardware and software programs are functional by the end of the millennium Action Plan: Management team shall institute test programs of all systems; e.g. police, fire, financial, utilities, etc. and report status to the City Council no later than June 30. Should certain systems prove defective, management team shall provide Council with proposals to bring the defective systems(s) into compliance by December 1, 1999. Should it be impossible to comply by December 31, 1999, management team shall devise and present it to the Council at the earliest date, a plan for keeping city operations functioning in the most efficient manner possible. Land Conservancy of San Luis Obispo County January 4, 1999 Director of Finance City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 RE: COMMUNITY GOALS Dear Sirs, The Land Conservancy of San Luis Obispo County has been wo community for over 12 years to enhance the quality of life we all enjoy. A great deal of this quality stems from our cultural institutions as well as the quality of the environment that MEETING AGENDA 3 DATE % _ -ITEM # surrounds our community. We encourage the City to pursue three goals. 1. Creek Day. The City added a new cultural tradition this last year with First Night. We would =J like to see increased support for another cultural event that occurs each year; Creek Day. We v have worked with the City for over six years sponsoring a creek clean-up and education fair Z in the fall of the year. O V Creek Day celebrates the principal natural resource that lies at the heart of our community; San Luis Obispo Creek. Creek Day provides an event that features hands on educational a V activities for the entire family. We also take several tons of trash out of the creek just before wthe winter nuns arrive. The City has helped provide staff support as well as financial help to rent the tents each year. What we need is additional funding for advertising. The event is attended by over 500 each year but we could reach a wider segment of the community with greater advertising. The power of advertising has never been more apparent than with First Night. The attendance and City support of this event has raised our sights as to what could be accomplished. We request a budget of $5,000.00 to assist with television and print advertising. KSBY has been a generous sponsor of the event the past two years. We could reach a broader segment of the community with additional paid advertising. 2. Octagon Barn Restoration. The Land Conservancy has pioneered, with its own funds and those of our 500 contributors, the restoration of what is one of the City's most visible and historical landmarks, the Octagon Barn on South Higuera. The restoration of this barn into a useable structure will provide the City with an important tourist attraction and strengthen the diversity of our economic base The Land Conservancy proposes to use the building as a Farmer's Market (to showcase our agricultural resources) as well as a showcase for natural P.O. Box 12206 * San Luis Obispo. CA 93406 • (805) 544 -9096 • FAX (805) 544 -5122 J and agricultural history. As a stopping point on the City to Sea Greenway, it will also provide a continuing link for all of our citizens with the natural history and rich scenic quality of San Luis Obispo Creek Our work over the past two years has strengthened the foundation and braced the internal wood support structure This has been made possible largely due to the contributions of many of our local business. Most notably, this includes Burke Construction, Sansone Construction, Hayward Lumber, and Bob Vessely. We are now raising money for the biggest project of all, the roof. The roof will require unique shingles which will have to be custom made. We need $50,000 to re- shingle the roof. This is the last but most expensive remaining part of the structure that needs to be repaired before the building can. be used. We would urge your support of this important project. 3. Water quality monitoring. The Land Conservancy has been undertaking a volunteer based water quality monitoring program for the San Luis Obispo Creek Watershed. This program collects real data that can be used to assess the health of the creek. All the monitoring of the creek is done by citizen volunteers, but funding is needed for equipment maintenance and publishing of the water quality information. Published information will serve as a reminder to citizens of the importance of high water quality and the role each citizen can play in improving our nearest natural resource. Funding in the amount of $4,000 would be sufficient to restock equipment and fund the publishing of the program newsletter and data report. 4. Greenbelt protection. Last but certainly not least we urge continuing support for acquisition of easements over land within the Greenbelt from willing landowners. This program has proven to be successful and we are pleased to be of help to the City in this process. We urge your continued support at the existing level. Sin Y s, Ray Belknap Executive Director I believe it will pay dividends for the city to increase the available fields for sports. I have 2 kids (age 6 and 8), plus manage to play organized sports myself. Living in SLO a mere 7 years, my only substantial criticism for the city is a lack of fields, particularly L I G H T E D F I E L D S!!! Lack of lights means many Dads cannot coach their kids teams (can't get off work before dark), and adult teams have nowhere to practice in the evenings after work. E X A M P L E: An adult soccer team I played on practiced in the evening on quarters tennis courts at SLO high. A longterm goal would be have to establish one main recreational area away from residences, where lights and traffic would not disturb people. Thanks for hearing my input. Tim Waag San Luis Obispo AYSO Division 599 Board of Directors Iam111999 SLO CITY COUNCIL r *LcTING AGENDA 3 DATE IYA -q q- ITEM # From: <WaagDiver ®aol.com> To: CITYSLO. SLOIPO( JMARX, JEWAN ,ASETTLE,sstendahl),CITY... Date: 1/11/99 12:14pm Subject: Re: SLO City Council G O A L S E T T I N G CDD DIR SIN I would like to voice my support for the following goal: AONCIL DIR AO .f nFIE CHIEF GOAL - Complete additional sports playing fields for EY g�ER�10�0A1yy0 E" DIR youth and adult activities. ..6BB��Ptt0EECMR ON .wl�!% .+IItML DIR I believe it will pay dividends for the city to increase the available fields for sports. I have 2 kids (age 6 and 8), plus manage to play organized sports myself. Living in SLO a mere 7 years, my only substantial criticism for the city is a lack of fields, particularly L I G H T E D F I E L D S!!! Lack of lights means many Dads cannot coach their kids teams (can't get off work before dark), and adult teams have nowhere to practice in the evenings after work. E X A M P L E: An adult soccer team I played on practiced in the evening on quarters tennis courts at SLO high. A longterm goal would be have to establish one main recreational area away from residences, where lights and traffic would not disturb people. Thanks for hearing my input. Tim Waag San Luis Obispo AYSO Division 599 Board of Directors Iam111999 SLO CITY COUNCIL