HomeMy WebLinkAbout01/12/1999, 9 - POLICIES AND OBJECTIVES1999 -oi financial plan calen&R
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
• Dwtnbute five year fiscal forecast and community workshop results to
Council.
January 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 2,1999
• Council finalizes goals and priorities.
February 10, 1999
• Issue budget instructions; departments begin preparing budgets.
February 23,1999
• Council considers mid -year budget review.
March to May, 1999
• Departments submit budget requests.
• Budget review team analyzes requests and meets with departments;
CAO finalizes budget recommendations.
Aprfl 6,1999
Council approves detailed goal work programs.
May 10, 1999
• Issue preliminary budget
May 17,19, 25p 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
• Planning Commission reviews CIP for General Plan consistency.
June 1,15,1999
• Council holds continued hearings; adopts budget
Bold Italics — Council Meeting Data
city of
�Ir san Luis oBispo
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
imprmremeat plan (CIP) 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 fundamental purpose of the City's Financial Plan is to
link what we want to accomplish for the comity with
the resources necessary to do so. The City's Financial
Plan process does this by: clearly setting major City goals
and other important objectives; establishing reasonable
timefiames and organizational responsibility for
achieving them; and allocating resources for programs
and projects.
Major City Goals
Lmt m important objectives with necessary resources
roquizes a process that identifies key 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 begins each two-year Financial
Plan process with a series of in-depth goal setting
workshops when: Council members invite candidate goals
from comity groups, Council advisory bodies and
interested individuals; review the City's fiscal outlook for
the next five years and the status 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 years. 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 fimd rates, investments, capital
improvement management, debt management, capital
financing, fund 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 well vary from year to
year, the following is an overview of the general
approach used under the . City's two-year budgetary
process:
• Fuse 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 a*stmen s as necessary, and
approves appropriations for the second fiscal year.
• MId Year Reviews The Council formally reviews
the City's financial condition and amends appropriations,
if necessary, six months after the beginning of each fiscal
year.
Interim Fuianchd and Project Maeas ReporM On-
line seem to "up-to- date" financial information is
provided to staff throughout the orgarrhation.
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.
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
fund balances. ■
IM
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
FINANCIAL PLAN PURPOSE
AND ORGANCUnON.
A. Financial Plan Objectives. Through its
financial plan, the City will link resources with
results by:
1. Identifying community needs for essential
services.
2. Organizing 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 City's
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 timefiames 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 fast
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.
H. 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 fiully cover
operating expenditures, including debt
service.
2. Ending fund 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.
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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 fiord
balance can only be used to fiord capital
improvement plan projects, or other "one - time,"
non - recurring expenditures.
FINANCIAL REPORTING
AND BUDGET ADMINISTRATION
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.
GENERAL REVENUE MANAGEMENT
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 future revenues, or
rolling over short-term debt
2. The City will use generally accepted D.
accounting principles in preparing its annual
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 -lime access to the City's financial
management system by City sta$ monthly
reports to program managers; more formal
quarterly reports to the Council and Department
Heads; 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 fiord
balances.
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Interfund Transfers and Loans. In order to
achieve important public policy goals, the City
has established various special revenue, capital
project, debt service and enterprise fiords to
account for revenues whose use should be
restricted to certain activities. Accordingly,
each fiord exists as a separate financing entity
from other fiords, with its own revenue sources,
expenditures and fiord equity.
Any transfers between fiords 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 interfimd
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, interfimd 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, interfi nd borrowings may
be appropriate; however, these are subject to the
following criteria in ensuring that the fiduciary
purpose of the fiord is met:
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
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 fiords has been made.
2. Any other interfimd borrowings for cash
now 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
interfimd borrowings; they shall be recorded
as interfimd operating transfers that affect
equity by moving financial resources from
one fiord 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:
1. 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.
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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 fiill 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 VAdch Favor
Low Cost Recovery Levels
Very low cost recovery levels are appropriate
under the following circumstances:
91—.5— .a
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 expelled 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
finding 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.
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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.
9-L
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
ggh -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 suppression.
Mid -Range Cost Recovery Activities
2. Maintaining and developing public facilities
- -o oP g P
(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)
500 /a
economic development activities.
g. Youth track
40° /a
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 rends
30%
1. Cost recovery for activities directed to
Low-Range Cost Recovery Activities
adults should be relatively high.
(0 to 25 %)
2. Cost recovery for activities directed to
m. Specs swim classes
%
5%
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
Oa % o
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,
than the cost of providing a pools, gymnasiums, ball
may be greater fields, special -use
uniform service fee structure to all areas, and recreation equipment for
participants. Further, there is a community- activities not sponsored or cosponsored 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.
9 -7
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POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
conform to the fee guidelines described
above.
6. 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.
7. 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:
2.
3.
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
Cost recovery for these services should
generally be very high. In most instances,
the City's cost recovery goal should be
100 %. 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-
However, in charging high cost recovery
levels, the City needs to clearly establish
and articulate standards for its performance
in reviewing developer applications to
ensure that there is "value for cost ".
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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.
i
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
ENTERPRISE FUND FEES AND RATES
2. Property tax m -lieu fees are established
under the same methodology used in
assessing property tax in -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 minimized 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 treat the
approved indebtedness, and redefining assessed
water fiord in 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 distribution 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 fimd 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 finds.
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 finds 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
91-9
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
proposes, 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 find.
F. Mission Plaza Improvements. A minimum of
$50,000 annually shall be designated in the
capital outlay fimd for Mission Plaza
improvements and expansions.
A. Responsibility. 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 -Not
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-team debt if
necessary to meet demonstrated cash flow
needs; TRANS or any other foam 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
-8-
A/O
POLICIES AND OBJECTIVES
WDGET AND FISCAL POLICIES
losses of investment earnings, cash flow and
future 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 firtures 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.
3. 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 further or refused altogether if an
institution's financial situation becomes
unhealthy.
H. Consolidated Portfolio. In order to maximize
yields from its overall portfolio, the City will
consolidate cash balances firm all fiords for
investment purposes, and will allocate
investment earnings to each fiord in accordance
with generally accepted accounting principles.
L Safekeeping. Ownership of the City's
investment securities will be protected through
third -party custodial safekeeping.
J. Reporting. The City Treasurer will develop
and maintain a comprehensive, well
documented investment reporting system which
will comply with Governmeirt 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 I241TATION
A- The Council will annually adopt a resolution
establishing the City's appropriations limit
calculated in accordance with Article )= of
the Constitution of the State of California,
Section 7900 of the State of California
Goverment 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 any, 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
3111B 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-
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
FUND BALANCE
DESIGNATIONS AND RESERVES. .
A. Minimum Fund and Working Capital
Balances. The City will maintain fimd or
woriang 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:
i. Economic uncertainties, local disasters, and
other financial hardships or downturns in
the local or national economy.
2. Contingencies for unseen operating or
capital needs.
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
minimtmu fiord balance in the Equipment
Replacement Fund of at least 200/6 of the
original purchase cost of the items accounted for
in this fund The annual contribution to this
fiord 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.
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 IMPROVEMENT MANAGEMENT .
A. CEP Projects -- $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.
B. 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 fund balance
levels for firture 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 finding
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:
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
1. Designate. Appropriates fiords based on designed, and more projects will be designed
projects designated for funding by the than will be constructed or purchased during the
Council through adoption of the Financial term of the CIP.
Plan.
F. CIP Appropriation. The City's annual CIP
I Study. Concept design, site selection, appropriation for study, design, acquisition,
feasibility analysis, schematic design, and/or construction is based on the projects
environmental determination, 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 finding for specific project phases.
This authorization generally occurs only after
3. Envfronmentai 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 propeny 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 constriction cost
estimation.
7. Construction. Construction contracts.
8. Construction management Contract
project management & inspection, soils &
material tests, other support services during
construction.
9. Equipment acquisitions. Vehicles, heavy
machinery, computers, office furnishings,
other equipment items acquired and
installed independently from constriction
contract& G.
10. Debt service. Installment payments of
principal and interest for completed projects
funded through debt financings.
Expenditures for this project phase are
included in the Debt Service section of the
Financial Plan.
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 fluid 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 fiord balance.
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.
Generally, it will become more difficult for a H. Program Objectives. Project phases will be
project to move from one phase to the next As listed as objectives in the program narratives of
such, more projects will be studied than will be the programs which manage the projects.
-11- ?-/-s
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
I. Public Art CIP projects will be evaluated
3. Capital improvements will be financed
during the budget process and prior to each
primarily through user fees, service charges,
for conformance with the City's public art
assessments, special taxes, or developer
phase
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, funding 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
funding 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, finds for public art will be identified
building projects fimded with transportation
separately in the CIP.
impact fees:
CAPITAL, FINANCING
a. The availability of transportation impact
AND DEBT MANAGEMENT
fees in finding 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 fiords 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 funds 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 funds from the
the long -term debt
General Fund, which will be
reimbursed as soon as finds
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
finds 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- 911-1-1
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
Factors which favorpay- myou -go
the reliability of revenues to support debt
financing
service.
a. Current revenues and adequate fiord
3.
The City will generally conduct financings
balances are available or project
on a competitive basis. however,
phasing can be accomplished.
negotiated financings may be used due to
b. Existing debt levels adversely affect the
market volatility or the use of an unusual or
City's credit rating.
complex financing or security structure.
c. Market conditions are unstable or
4.
The City will . seek an investment grade
present difficulties in marketing.
rating (Baa/BBB 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 -term 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
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 full 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.
1.
General purpose debt capacity. The City
B. Debt Management
will carefidly monitor its levels of general
purpose debt Because our general purpose
1. The City will not obligate the General Fund
debt capacity is limited, it is important that
to secure long -term financings except when
we only use general purpose debt financing
marketability can be significantly enhanced.
for high -priority projects where we can not
reasonably use other financing methods:
2. An internal feasibility analysis will be
funds borrowed for a project today are not
prepared for each long -tern financing
available to fiord other projects tomorrow,
which analyzes the impact on current and
and fiords committed for debt repayment
firhue budgets for debt service and
today are not available to fluid operations in
operations. This analysis will also address
the future. In evaluating debt capacity,
general purpose annual debt service
-13- /0445001
POLICIES AND OBJECTIVES
BUDGET AND FISCAL POLICIES
payments should generally not exceed 10%
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 fiord 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 retaining 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 Financings
1. Public purpose. There will be a clearly
articulated public purpose in forming an
assessment or special tax district in
financing public infiastructure
improvements. This should include a
finding by the Council as to why this form
of financing is preferred over other fiinding
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 filed; 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- 9-1Z
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 affival debt
service obligation, a letter of credit fiuther
securing the financing may be required.
4. Reserve fund A reserve find should be
established in the lesser amount of the
maximum annual debt service; 125% of the
annual average debt service; or 10% of the
bond proceeds.
5. Value-to-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 under 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. Cgpaakwd 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 future property
owners.
7. Maximum burden. Affival 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 apportionment 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 fi-om the
initial development plan, and should include
procedures for prepayments.
10. Foreclosure covenants. In managing
administrative costs, the City will establish
minimum 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 prospecdve 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
-15-
9 -17
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 cleat 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 Staffin
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 hill -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)
S. Staffing and contract service cost ceilings
will limit total expenditures for regular
employees, temporary employees, and
-16- 9 -/8
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 staffing 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 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:
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 sbA 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- 91-19
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
skills 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 functions.
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:
-Is- 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 delivery9
-19- 9'a/
9Z2
!n
FROM:
council
ac En as
nEpoit
CITY OF SAN LUIS OBISPO
Bill Stager, Director of Finance Vl'
SUBJECT: GOAL-SErrING PROCESS FOR 1999-01
CAO RECOMN ENDATION
Approve the goal- setting process for 1999 -01.
DISCUSSION
Background
d�
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 cgxnence over the past eight years, this has been a successful process in assuring
that the fimdamemal purpose of the City's budgetary process is acineved: linking what we want to
t000mplish 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 Mamslai as our facilitator at both workshops:
■ community workshop. field on the evening of Tuesday, January 12, the purpose of this
"conmmaaity fora" is to solicit suggested goals and work programs from Council advisory
bodies, community groups and interested individuals. In notices sent to these groups, we
bave requested &at written suggestions be provided to us by January 4, 1999. To ensure
drat adequate space is available for this workshop, it will be held at The Forum.
■ Couace god sewng wm*shoR Following the receipt of written and oral comments on
January 12, the goal- settmg workshop will be held on Sa[rirday, January 30 in the labrary
Community Room.
Goal-Setting Process
Provided in Mdubits 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 goat,
q .23
Coundl Agenda Report— �etiing Process for 1999 -01
Page 2
what is being requested, why the presenter believes it is imI ' ' to the community so
the Council learns the underlying hope or objective, and how the underlying hope can be
creatively achieved. Council members will be provided with worksheets to assist them in
taking notes, and brief summaries of the whaf, 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; said then narrowing the list
to candidate goals that are supported by at least tires 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 next two years.
4--Very important goal for the City to achieve. deoto : 1x4e 4 ym cf,�o
3— Important goal for the City to achieve. c1kCi'a6.,c -JV k se a
2—Tot as important to achieve as other candidate goals. 'Ov"1: s441e
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 stmimarize the results of the Council's rankin during a break at the workshop. Based
on our past experie nce, it is likely brat 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 next 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 next regular Council
meeting following the January 30 workshop—February 2, 1999. .
Aol
Council Agenda Report—Goal-Setting Process for 1999-01
cage 3
Corw=7 Homework Am*uawL Provided in Exhibit C is the Council's "homework
assigameai" for the January 30 wodohop. It requests that Council members prepare and 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 CI(y Goal Criteria. Provided in Exhibit D is the suggested "criteria for major City goals"
which have been used by the Council for the past eight years.
Extensive Nonfwatfom 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/Adviwry 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.
■ " Commumity 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 informal contacts inviting participation -
■ )Display ads will be ran in January in San Luis 'Magazine, Telegram Tribune and New
Times.
Goa4Smxg Workshop 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 cusent 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).
Ii Consolidated Council member goals (to be distributed on January 25).
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- setting 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
timeframe that the Council intended, we can not identify needed resources; and without this
understanding, the Preliminary Financial Plan may significantly over (or under) find 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 form and goal - setting workshop in January, key dates in the budget
process include:
Tuesday, February 2 FoIlow -up to Council goal-setdag d needed. Continued
Regular Meedng 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 Meedng the mid -point of the fiscal year and make appropriation
adjustments as necessary.
9 -s2JG
Council Agenda Report—Goal - Setting Process for 1999 -01
Page 5
Tuesday, April 6
Council goal work programs. Review and approve detail
Regular Meiling
work programs to accomplish Council goals; provide other ,
budget direction as needed.
Monday, May 10
CAO issues Preliminary Financial Plan.
Monday, May 17
Budget workshop. Review the Financial Plan and consider
Special Budget Workshop
General Fund operating programs.
Wednesday, May 19
Budget workshop. Consider General Fund capital
Special Budget Workshop
improvement plan (CIP) projects.
Tuesday, May 25
Budget workshop. Consider Enterprise Fund operating
Special Budget Workshop
programs, CIP projects, revenue requirements and rates.
Tuesday, June 1
Public hearing. Continue to discuss and receive public
Regular Meeting
comment on the Preliminary Financial Plan.
Tuesday, Jane 15
Public hearing. Continue to discuss and receive public
Regular Meeting
comment on the Preliminary Financial Plan; adopt the budget
SUMMARY
Council goal- setting is an important "first step" in the City's Financial Plan process. In fact, it is
import= to stress just this fact —it is the beginning of the budget process, not the end. Setting
goals --and subsequently approving work programs --is 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
Q F==nM41 F==' M= Cmxd co9sWmWn8nda RVmUC=kSctWs ft= ngmda I:q«c —D=n,= s, IM
f.�
Exhibit
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 coAaboration 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, altemative 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
utilities; 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 15]
9 -�P
Schedule
7:00 - 7:05 p.m. Welcome
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)
7:20 - 9:50 p.m.
9:50 -10:00 p.m.
Community input
break
Mayor
CAO
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.
Staffi 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 `what",
'why", and °how° on flip charts.
Coach: elicit the 'wvhat", awhy", 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.
KW
Exhibit
Outline for Council Goal- Setting Workshop
8:30 am. - 4:00 p.m., Saturday, January 30,1999
Objectives
• 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.
f7::.V/
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
CAO
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 oonstructively, guide
Council members in the process of goal weighting and selection, and draw staff
and public into deliberations as desirable.
Exhibit C'i
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
93'�;
Exhibit 15
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 Fina 21 PL% CCoumeil Goal- Scub*ft4or Goal Cdbmia
Exhibit f�-
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.
Jmuiary 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 2, 1999
- Council finalizes goals and priorities.
February 10, 1999
• Issue budget instructions; departments begin preparing budgets.
February 23,1999
• Council considers mid -year budget review.
March to May, 1999
• Departments submit budget requests.
• Budget review team analyzes requests and meets with departments;
CAO finalizes budget recommendations.
Aprff 6y 1999
• Council approves detailed goal work programs.
May 10, 1999
Issue preliminary budget
May 17, 19, 25, 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
• Planning Commission reviews CIP for General Plan consistency.
June 11.15, 1999
• Council holds continued hearings; adopts budget
Bold Italics — Council Meeting Dates
9 -3s
,�
-�6
council MMi'°`1z_P-
j apenaa Report bmN.A.� ige
CITY OF SAN LUIS OBISPO
FROM: Bill Statler, Director of Finance 0�
SUBJECT: MM AL FISCAL OUTLOOK FOR 1999 -01
CAO RECOMMENDATION
Consider the City's general fiscal outlook for 1999 -01.
DISCUSSION
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 in 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 in this. This is especially true given the increased (and successful) competition by
the north and south county areas on our traditional position as the retail center for the
County.
■ No farther state cuts --or returns. While no initiatives are on the.honzon to restore any
of the State cuts to cities over the past several years (totaling over $1S 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 forecasts whether revenues overall will rise faster than
operating costs. However, past experience tells us that even if we control our current cost
A37
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 in responding to legitimate, unmet service needs.
■ Infrastructure 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 unfunded liability for public safety
employees, which is likely to result in substantially higher retirement costs.
Compared with an employer contribution rate of 4% 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 -
finded and can temporarily offset some of the increased public safety costs. Once PIERS
calculates the 1999 -00 fiscal year rates, a strategy for fimdmg 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.
SUAE IARY
In general, it is lflmly that we will have adequate resources to find curmt service levels and a
limited capital improvement plan.
However, improving service levels or more fully achieving our capital improvement goals will
be very difficult. This challenge is highlighted by the proposed CEP in the third and fourth years
of our current 1997 -99 Financial Plan compared with the first and second years: the average
General Fund commitment to the CIP for 1997 -99 is $2.4 million; for 1999 -01, this increases to
$3.7 million, an increase of $13 million. And this does not include the $1.1 million increase in
annual finding for street maintenance and reconstruction recommended in 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 infastructure 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 find new initiatives, although this will not be easy. Several options are available to us in
doing this:
`�
Council Agenda Report General Fiscal Outlook for 199"1
Page 3
E=ft resources. Re- pnontize eiurent 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 requites 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 m
January of 1998, it is not a potential source of finding 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.
(r. 1999 -01 Fk=cW lhnComca Goal- Sedng/Ca=dI Aged, Rqw&CA=mzI Fiscal Outrook Agrnda Report — December 8.1998
/D
Ad 40C
— ✓�„�r,, '�,., �..3 /may az:�e
�ulll�lllulplll�� �Illliull ���I city of
san Us osispo
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 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 our citizens
believe are the most
important things for
the City to do. 7
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
Preliminary Financial Plan and
Budget
These upcoming workshops will play
a major role in shaping the City's
future spending priorities. We
encourage you to attend these
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-
0 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/
1111111 111 1111111 111111111111 city of san WI 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 WITH GOAL- SETTING
First Step is Community Foram
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 foram and the City's budget process is available
by calling Bill Statler, Director of Finance, at 781 -7125.
q �v
ARK re r-Ae
RANGER .�'7'E.s�` What A the AW
SERVICE ��'�"''�' Most Important Things for
•s the city of San Luis Obispo
.�O to Accomplish
�'
New r Over the Next Two Years?
New T Trails Update
Volunteer Trail Lookouts The city is starting to prepare our am two yeas bads
the 1999 -01 Financial Plan. The very Bast step in this
anaMwM pr process is Cowl god -s ttmg. Ranger Diffenderfa will take over as supervising ranger on
December IS* She will oversee open space and regular patrol. Goal-Salfw Tu= mtd Men
This will inch& more trail maintenance and overseeing new Cao==nftyFm=
trail construction. Ranger Cireen will be in charge of all envi- We bearfmm you.
mmnental education activities. Tuesday January 12, 1999
7:00 to 11:00 PM
1Vew 71�,oa�lSUpdGrh The Foram
The Bishop Peak Tlrail is still under contrudion. Work has 751 Marsh Street
progressed taidy well since the project began. Crews have been
slowed by the ironic they are working in row. With mother
name's cooperation, the trait should be open before the end of Goak%tdng Workshop.
�e yem 77he Councff sets goals.
Saturday, January 30,1999
The Felsman loop trail from the water tower (off of the Pamela 9:00 AM to 4-00 PM
entrance) is coaWlete. The Felsmaa loop trail provides a different City/County library Community Room
view than previous tmrls in the Bishop Peak Natural Reserve. It 995 Palm Sired
IrMMM das the north side of the mom, with views of Poly
Cam, Cmesta ddg% 5 of the 7 sistem and Mono Bay. Over In semng Soak for the new. two years, the Canned is
half of this trail is in shaded, woddy areas. which makes it nice genuinely interested in to mwing what our citizens
even on hot days. For more information or-to volhimeer for mail believe are the most importmcthings for the Chyto do.
work please call Ranger Differ at 781 -7072. 8 grOO� been orgamaed laic two steps
NdeAdeld
T1teW[unteerThilLoolooatptag unisnoderway. TbeL,00bouts
will hft the trails of the open space on a regular basis. They
will report conditions sad any problems to the Ranger Service.
F(w more mfrmatian or to volunteer; call Ranger Diffeoderfer
at 7817072.
16
A community foram will provide Connell advisory
bodies, --- ity'goaps and in tested iodividuls with.
an opportunity to d= with the Cbamlwbat they bffim
ate the moat important pdonties that the.CSty should. pa
sae over the next two yeas
A Couna god4W teg workcWp will then :bE held
where the Council will ad niq* City goals for the new
two years
These upcoming workshops . will , play a
major role in shaping the City's future spending prioddes.
We encourage you to atoead time speed sessiosm and to
share your thoughts with as. Please help us shape our fu-
ture.
Want ,+rote ixfordradox? If you would litre more
infarmatiaa about these apoommg a the CSdy's
budget process, please call us at 781 -7125: .
9- f3
/moo to -A avrl�
ioiu�����n�III�IIIIP�m���l�lll! city of 1'7r
i san Lugs oim spo %� ��� %�•� - dua�s
990 Palm Street ■ San Luis Obispo, CA 93401 ■ (805) 781 -7125
December 23, 1998
Council Goal-Setting for 1999 -01
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:
• Written 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
opportunity to further share with the Council what you
believe are the most important things for the City to do over
the next two years.
• Council 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
June 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 Dunn, City Administrative Officer
Bill Statler, Director of Finance
®The City of San Luis Obispo is committed to Including disabled persons In all of our services, programs and adhAdes.
Telecommunications Device for the Deaf (805) 781 -7410.
city Of .mss AM,"
i san Luis ompo
990 Palm Street ■ San Lois Obispo, CA 93401 ■ (805) 781 -7125 -
November 16, 1998
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
preparing the preliminary 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 win issue in May of 1999. This will be followed by
exbeosive budget workshops and public hearings, leading to
Council adoption of the budget by June 30, 1999.
Your 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
f F`
Community Forum
Tuesday, January 12,
7:00 to 11:00 PM
The Form
751 Marsh Street
Council Goal -Setting Workshop
Saturday, January 30, 1999
8:30 AM to 4:00M
City /County library Community Room
995 Palm Street
goals. These should oc submrtted to the Departmen t o nonce
by Monday,- Jwuurry 40 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 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 -7114.
Sincerely,
Allen Settle; Mayor John Dunn, City Administrative Officer
e9–
®The C ty of San Luis pWspu Is committed to Including disabled Persons In all of our services, programs and activities.
Telecortimunicaeoris Device for the Deaf (805) 781 -7410.
mEmoaanaum
November 13, 1998
TO: Advisory Body Chairs
FROM: Allen Settle, Mayor
John Dunn, City Administrative Officer
SUBJECT: 1999 -01 FINANCIAL PLAN —AND YOUR IldPORTANT 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
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
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. 7— & J
Cc City Comcil, Depattmatt Heads and Advisory Body Staff Liaisons
0
a crty of
Salt LUIS omspo �a"z4. j // / f99_
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 land 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 Forum 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 pimcess,
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:
O
Q
O
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 @cisan- luis- obispo.ca.us
• Drop it by. Any City oMce.
- - -- -Fold andSiwkHem rMail=°g---------------------
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
BUSINESS REPLY MAIL
FIRST -CLASS MAIL PERMIT NO. 369 SAN LUIS OBISPO. CA
POSTAGE WILL BE PAID BY ADDRESSEE
CITY OF SAN LUIS OBISPO
CITY ADMINISTRATIVE OFFICER
990 PALM ST
SAN LUIS OBISPO CA 93401 -9938
Budget -In -Brief
1997-99 Financial Plan Supplement
July 1, 1998
li 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 fuck 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
responsibly 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 goals 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
accountabTity. 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
I inking important objectives with necessary
L,resources 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
ronnally articulated. budget and fiscal policies
rprovide 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
$�Oyy
key Buac et featuues
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 alts to
cities (nor restoration of past cuts) 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 ddficult 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
2
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 working
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 -tens 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-mating (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 rrullion).
• 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
on city coals
T 997-99 Financial Plan sets forth major City
goais-and other key objectives for the next two years
and links 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 -term water supply development Meet the City's long -term water supply
needs by. reaching agreement with North County cities on the Nacimiento 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.
ve,
• Youth athletic fields. Develop a sports facilities complex, subject to resolving
t.....ural &
neighborhood and environmental concerns.
Soda) 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 mall 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--5-1
financial plan su
Total
3ting programs W&I
al improvement plan 13.9
service 62
lemEnt fact$
Funding Sources (in millio
63% General fund
26% Other governmental funds''
11 % Enterprise funds
4
M-1 .
$27.5
51%
2.8
5%
24.1
44%
54.4
100%
Public utilities
-
- General Fund
safety
$10.6
31%
Public safety
$10.6
48%
utilities
6.7
20%
Public utilities
-
-
iortation
3.9
11%
Transportation
2.1
9%
:, cultural & social services
3.9
11%
Leisure, cultural & social services
3.4
15%
unity development
3.3
10%
Community development
3.0
13%
al nmP nment
5.9
17%
General government
3.4
15%
- All Funds
Contract services 6.2
Supplies 5.8
Minor capital 0.3
- All Funds
Water reuse stuay & oeslgn
W.s
Water treatment improvements
0.5
Water distribution system
2.5
Sewer system improvements
1.3
Utilities offices
-
Pavement resurfacing
0.8
Creek bank stabilization
0.5
Flood mgt plan & improvements
0.4
Disabled access improvements
0.3
Marsh Street garage expansion
3.9
Parking site acquisition
1.5
Youth athletic fields
3.0
Adobe restoration
02
Park & swim center improvements
02
Open space acquisition
0.3
Finance management system
02
r Whar tPMnnlnnv imnrovements
0.3
- General Fund
64% Staffing $18.1 72%
18% Contract services 2.9 12%
17% Supplies & minor capital 4.1 16%
1 % Reimbursed expenditures (2.6) -
0.5
12
1.0
0.9
1.5
1.1
02
02
0.7
02
02
02
Regular Positions By Function - All Funds
of .
Publid safety
135.0
40%
Public utilities
56.5
17%
Transportation
23.5
7%
Leisure, cultural & social services
29.0
9%
Community development
36.6
11%
l%aneral nnvemment
53.4
16%
r .. n... " P_nvare.manlnl Frrnrf Ravanr►as "
- cewmrau eetla km*WG geDGM mcCW m.eeue. race+, ww.a.� a., •-•••.� •,�•••
Regular Position Changes - All Funds
Gen Fund Ent Funi
Public safety 1.0 -
Public utilities - 1.0
Transportation - -
Leisure, cultural & social services - -
Community development 3.5 -
9 -s2
1998-99 % of
.
Sees 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 Bt!% of
Governmerrtal Fund revenues A wide variety of fees
account for another 9% summarized as follows:
Development review fees
$1.1
4%
Recreation fees
0.9
3%
Other service charges
0.7
2%
omen povernmentat fund revenues Include Interest
eamings, grants, fines and sale of surplus property.
- cewmrau eetla km*WG geDGM mcCW m.eeue. race+, ww.a.� a., •-•••.� •,�•••
Regular Position Changes - All Funds
Gen Fund Ent Funi
Public safety 1.0 -
Public utilities - 1.0
Transportation - -
Leisure, cultural & social services - -
Community development 3.5 -
9 -s2
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