HomeMy WebLinkAbout03/00/1990, 5 - MID-YEAR BUDGET REVIEW III �yIII�IIIIII�� II MEETING DATE:
�I Ali=���� city o1 san lugs osispo March 5, 1990
OftMe COUNCIL AGENDA REPORT '1 NUMBER:
FROM: William C. Statler, Director of Finance
SUBJECT: MID-YEAR BUDGET REVIEW
CAO RECOMMENDATION
1. Receive and file the Mid-Year Budget Review for Fiscal Year 1989-90.
2. Adopt the attached resolution approving the recommended Mid-Year Budget Requests
and amending the 1989-91 Financial Plan.
OVERVIEW
The City's two-year Financial Plan provides for the submittal of a report on the financial
status of the City to the Council every six months. Although monthly financial reports are
distributed to the Council on an ongoing basis, the formal submittal of a review at the mid-
point of the fiscal year provides an opportunity to identify and present any fiscal problem
areas to the Council and to recommend corrective action or additional funding if required.
Accordingly, the enclosed Mid-Year Budget Review document has been prepared in order to
present a summary of the City's financial position at the mid-point of Fiscal Year 1989-90,and
to provide projections of the City's financial position at the end of the fiscal year compared
with original budget estimates. Additionally,supporting documentation for several mid-year
budget requests for operating programs and capital improvement plan projects is also included
in the enclosed document.
The report document includes a transmittal memorandum which provides a comprehensive
review and analysis of the City's financial position at this time. As discussed in the report,
the City's revenues and expenditures are generally on target with budget projections,although
sales tax revenue trends continue to be a concern.
REPORT ORGANIZATION
The Mid-Year Budget Review document for 1989-90 has been organized into the following
four sections:
Section A - Transmittal Memorandum
The transmittal memorandum provided in this section summarizes the City's financial position
at the mid-point of the fiscal year, and highlights significant trends and concerns. The
transmittal memorandum also summarizes the mid-year budget requests and proposed
amendments to the 1989-91 Financial Plan. Finally,the transmittal memorandum discusses the
use of reserves and designated portions of fund balance in the context of the Mission Plaza
Reserve policy adopted by the Council in September of 1987(Resolution No.6306, 1987 Series).
Section B - Excerpt from the December Monthly Financial Reuort
The Monthly Financial Report (MFR) for December 1989 has been previously distributed to
the Council. For reference purposes, the transmittal memorandum from the December MFR
along with selected graphics included in that document have been provided in this section of
the Mid-Year Budget Review.
Section C • Financial Condition Summary
This section summarizes the City's financial condition at the mid-point of the fiscal year,and
provides projections of the City's financial position at the end of the fiscal year compared
with original budget estimates. This section is organized into three major areas:
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INAj COUNCIL AGENDA REPORT
a Summary of actual revenues for 1988-89 and a comparison of current projections
for 1989-90 with original budget estimates.
a Summary of the current operating budget by function and program for 1989-
90 based on the original budget as adopted by the Council, encumbrance
carryovers,and other budget changes made by the Council during the fiscal year
as of December 31, 1989.
a Summary of actual revenues, expenditures, and changes in fund balance for
1988-89 for each of the City's operating funds and a comparison of current
projections with original budget estimates.
Section D - Mid-Year Budeet Reauests
The mid-year budget requests submitted by the operating departments and recommended by
the City Administrative Officer for Council approval are provided in this section, which is
organized into three major areas:
a Summary of the cost of each request by type (operating or capital), function,
and fiscal year (1989-90 and 1990-91).
a Supporting documentation for each Operating Program request.
a Supporting documentation for each Capital Improvement Plan request..
FISCAL IMPACT
As discussed in the Mid-Year Budget Review document, the City's revenues and expenditures
at the mid-point of the fiscal year are generally on target with budget projections, and Section
C of the report document summarizes the projected ending financial position for each of the
City's funds. The primary fiscal impact of the Mid-Year Budget Review is related to the
recommended operating and capital budget adjustments which are described in Section D of
the Mid-Year Report and summarized in Exhibit A of the attached resolution. The following
is a brief summary of the mid-year requests:
1989-90 1990-91
Operating Programs $ 427,200 $ 736,700
Capital Improvement Plan Projects 335,000 288,000
TOTAL $ 762,200 $1,024,700
For 1989-90, these changes represent an increase of 1.1% from original budget amounts, and
3.0% for 1990-91. As reflected in the attached summary, the primary operating program
change is the projected cost to operate and maintain the City's groundwater wells: $359,900
is requested for the remainder of 1989-90 and $736,700 is projected for 1990-91. The primary
capital improvement plan change is the asbestos removal project at City Hall, which is
projected to cost $323,000 over the next two years.
SUMMARY
The Mid-Year Budget Review for Fiscal Year 1989-90 has been prepared in order to present
the Council with a formal review of the City's financial condition at the mid-point of the
fiscal year and to recommend appropriation changes as needed since adoption of the 1989-91
Financial Plan. Accordingly, it is recommended that the Council receive and file the Mid-
Year Budget Review report, and adopt the attached resolution approving mid-year budget
changes and amending the 1989-91 Financial Plan.
90MIDYR/REYIEW.WPF
RESOLUTION NO. (1990 Series)
A RESOLUTION OF THE COUNCIL OF THE
CITY OF SAN.LUIS OBISPO
APPROVING MID-YEAR BUDGET REQUESTS
FOR FISCAL YEAR 1989-90 AND
AMENDING THE 1989-91 FINANCIAL PLAN
WHEREAS, the City Administrative Officer has presented the Council with a Mid-
Year Budget Review report on March 5, 1990, in accordance with the City's Financial Plan
policies; and
WHEREAS, mid-year budget requests and amendments to the 1989.91 Financial Plan
were submitted at that time for Council consideration and approval.
NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo that:
Section 1. The Mid-Year Budget Requests recommended by the City Administrative
Officer for Fiscal Year 1989-90 are hereby approved in the amount of $762,200 as summarized
in Exhibit A attached hereto.
Section 2. The 1989-91 Financial Plan for Fiscal Year 1990-91 is hereby amended
in the amount of $1,024,700 as summarized in Exhibit A attached hereto.
On motion of seconded by and on the following roll call
vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this _ day of 1990.
ATTEST:. Mayor Ron Duain
City Clerk Pam Voges
APPROV
City Adm5istrativ O icer
y
Director of Finance
EXHIBIT A
SUMMARY OF 1989-90 MIDYEAR BUDGET REQUESTS AND AMENDMENTS TO THE 1989.91 FINANCIAL PLAN
------------------------------------------------------------------------------------------------------------------
Regular Amount Requested
Positions -------------------------
Requested 1989-90 1990-91
------------------------------------------------------------------------------------------------------------------
OPERATING PROGRAMS
Public Safety
Police Patrol Services - Speed Trailer $6,600 SO
Public Utlities
Groundwater Wells - Operation and Maintenance 1 359,900 736,700
General Government
Legal Services - Contract Service Requirements 45,700 0
Personnel Administration - Classification Studies 15,000 0
Total Operating Programs 1 427,200 736,700
---------------------------------------------
CAPITAL IMPROVEMENT PLAN PROJECTS
Public Utilities
Groundwater Wells - Screening of Carbon Filtration Tanks 65,000 0 -�
Leisure, Cultural 8 Social Services
Mission Plaza Projects 50,000 50,000
General Government
City Hall Asbestos Removal 180,000 143,000
City Hall Office Systems Furniture 40,000 95,000
------------------------------
Total Capital Improvement Plan Projects 335,000 288,000
------------------------------
TOTAL MID-YEAR BUDGET REQUESTS $762,200 $1,024,700
1989-91 FINANCIAL PLAN
Mid-Year Budget Review
Fiscal Year 1989-90
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City of San Luis Obispo, California
TABLE OF CONT"NTS
PREFACE i
A. Transmittal Memorandum
Overview A-1
C Financial Condition Summary A-1
Revenues
Operating Program Expenditures
Projected Fund Balances
Mid-Year Budget Requests A-3
Mission Plaza Reserve Policy A-5
Summary A-7
Exhibit 1: Status Report on Mission Plaza Reserve Policy A-8
B. Excepts from the December 1989 Monthly Financial Report
Transmittal Memorandum B-1
Graphic Summaries and Tables - Budget and Actual
Revenues - All Funds Combined B-3
Operating Expenditures - All Funds Combined
By Function B-4
By Type B-5
Capital Project Expenditures by Fund B-6
C. Financial Condition Summaries
Revenue Projections C-1
Operating Program Expenditure Projections
Public Safety C-3
Public Utilities C-4
Transportation C-5
Leisure, Cultural and Social Services C-6
Community Development C-j
General Government C-g
Changes in Fund Balance
General Fund C-9
Special Revenue Funds
Library Fund C-10
Business Improvement Area (BIA) Fund C-11
Gas Tax Fund/Transportation Development Act (TDA) Funds C-12
Capital Project Funds
Capital Outlay Fund C-13
Parkland Development Fund C-14
Equipment Replacement Fund C-15
Debt Service Fund C-16
Enterprise Funds
Water Fund C-17
Sewer Fund C-18
Parking Fund C-19
Transit Fund C-20
Agency Fund - Whale Rock Commission C-21
D. Mid-Year Budget Requests
Summary D-1
Operating Programs
Patrol Services
Radar Trailer D-2
Groundwater Wells - Operations and Maintenance D-3
Legal Services D_7
Personnel Administration - Classification Studies D-8
Capital Improvement Plan Projects
Groundwater Wells - Screening of Carbon Filtration Units D-10
Mission Plaza Projects D-11
City Hall Asbestos Removal D-12
City Hall Office Systems Furniture D-14
PREFACE
e
PREFACE
The City's two-year Financial Plan provides for the submittal of a report on the financial
status of the City to the Council every six months. Although monthly financial reports are
distributed to the Council on an ongoing basis, the formal submittal of a review at the mid-
point of the fiscal year provides an opportunity to identify and present any fiscal problem
areas to the Council and to recommend corrective action or additional funding if required.
Accordingly, the enclosed Mid-Year Budget Review document has been prepared in order to
present a summary of the City's financial position at the mid-point of Fiscal Year 1989-90,and
to provide projections of the City's financial position at the end of the fiscal year compared
with original budget estimates. Additionally, supporting documentation for several mid-year
budget requests for operating programs and capital improvement plan projects is also included
in the enclosed document.
To accomplish these goals, the Mid-Year Budget Review document for 1988-89 has been
organized into the following four sections:
Section A - Transmittal Memorandum
The transmittal memorandum provided in this section.summarizes the City's financial position
at the mid-point of the fiscal year, and highlights significant trends and concerns. The
.transmittal memorandum also summarizes the mid-year budget requests and proposed
amendments to the 1989-91 Financial Plan. Finally,the transmittal memorandum discusses the
use of reserves and designated portions of fund balance in the context of the Mission Plaza
Reserve policy adopted by the Council in September of 1987(Resolution No.6306, 1987 Series).
Section B - Excerpt from the December Monthly Financial Report
The Monthly Financial Report (MFR) for December 1989 has been previously distributed to
the Council. For reference purposes, the transmittal memorandum from the December MFR
along with selected graphics included in that document have been provided in this section of
the Mid-Year Budget Review.
Section C - Financial Condition Summary
This section summarizes the City's financial condition at the mid-point of the fiscal year, and
provides projections of the City's financial position at the end of the fiscal year compared
with original budget estimates. This section is organized into three major areas:
• Summary of actual revenues for 198849 and a comparison of current projections
for 1989-90 with original budget estimates.
• Summary of the current operating budget by function and program for 1989-
90 based on the original budget as adopted by the Council, encumbrance
carryovers,and other budget changes made by the Council during the fiscal year
as of December 31, 1989.
• Summary of actual revenues, expenditures, and changes in fund balance for
1988-89 for each of the City's operating funds and a comparison of current
projections with original budget estimates.
Section D Mid-Year Budget Requests
The mid-year budget requests submitted by the operating departments and recommended by
the City Administrative Officer for Council approval are provided in this section, which is
organized into three major areas:
• Summary of the cost of each request by type (operating or capital), function,
and fiscal year (1989-90 and 1990-91).
• Supporting documentation for each Operating Program request.
• Supporting documentation for each Capital Improvement Plan request.
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Section A
TRANSMITTAL MEMORANDUM
MEMORANDUM
March 5, 1990
TO: City Council
FROM: William C. Statler, Director of Finance
SUBJECT: MID-YEAR BUDGET REVIEW FOR 1989-90
OVERVIEW
This document has been prepared in accordance with the City's Financial Plan policy of
submitting a report on the City's financial status to the Council every six months. Although
monthly financial reports are distributed to the Council on an ongoing basis, the formal
submittal of a review at the mid-point of the fiscal year provides an opportunity to identify
and present any fiscal problem areas to the Council and to recommend corrective.action or
additional funding if required.
As discussed further in this report, the City's revenues and expenditures at the mid-point of
the fiscal year are generally on target with budget projections, although sales tax revenue
trends are an area of concern. Additionally, the City will need to comprehensively address
its water and sewer fees later in the Spring as the following programs and projects become
more fully defined, developed, and implemented:
• Wastewater Treatment Plant Upgrade
a Groundwater well development and operation
e Mandatory water conservation programs
FINANCIAL CONDITION SUMMARY
As discussed in the December 1989 Monthly Financial Report (MFR) previously distributed
to the Council, financial results at the mid-point of the fiscal year are generally on target with
budget estimates: with 50% of the year complete, revenues are at 51% of fiscal year
projections; and operating expenditures/encumbrances are at 48% of budgeted amounts. For
reference purposes, the Transmittal Memorandum and selected graphics and summary tables
from the December MFR have been included in Section B of the Mid-Year Budget Review
document. These excerpts summarize the City's financial condition at the mid-point of the
fiscal year and provide an overview of any significant exceptions to expected results.
As noted in the Overview section of this memorandum, sales tax revenue trends are a concern,
and water and sewer rates will need to be comprehensively addressed later in the Spring as
program requirements in these areas are further developed and defined. The following is a
summary of highlights for revenues, expenditures, and projected fund balances:
Revenues
Included in Section C of this report is a summary of revenues by major source which provides
actuals for 1988-89 along with a comparison of current revenue projections with original
budget estimates. As reflected in this summary, revenues are generally projected to be
received as originally anticipated with the notable exception of sales tax revenues, which
account for 30% of the City's non-enterprise revenues. As discussed in all of the monthly
financial reports issued since October of 1989, sales tax revenues to date are relatively flat
compared with receipts from the prior fiscal year, whereas the 1989-91 Financial Plan
projected an annual increase of approximately 6%. Generally, a revenue shortfall of 5%-6%
in any one revenue category would not be a major concern; however, due to the significance
of sales tax revenues as a major funding source ($6.1 million in 1988-89), a 6% variance has \
a negative impact on General Fund balances of almost $400,000.
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Unfortunately, it is very difficult to empirically evaluate and identify the causes for this
levelling-off of sales tax revenues,which have historically increased at a rate of 9.5%annually
over the past ten years. For a source as important to the City as its sales tax revenues, very
little data is available to perform a timely, meaningful analysis of revenue trends as they
emerge. Information is available from the State Board of Equalization regarding how each
sector of the retail economy is performing (clothing, restaurants, auto dealers,etc.), and based
on this information, the City includes a ten year summary of taxable sales activities by type
(through the most recent year available) in its Comprehensive Annual Financial Report (page
124 of the 1988-89 CAFR). As reflected in the following summary of retail sales by type,
changes in only one key category such as automobile sales can have a significant impact on
overall revenues.
Calendar Calendar Percent of
Retail Sales (in thousands) 1987 1988 Total
Auto dealers & supplies $ 107,987 $ 109,035 21.3%
Eating & drinking places 50,803 54,413 16.6
Food & drug stores 32,920 34,380 6.7
Service (gas) stations 27,883 33,154 6.5
Building materials & farm tools 26,552 28,853 5.6
Apparel stores 22,639 24,873 4.9
Home furnishings & appliances 17,419 19,890 3.9
Other outlets 195,776 206,663 40.5
TOTAL $ 481,979 --T-511,261 100.0
Although useful in gaining a general understanding of the City's retail base, this information
is not available on a timely basis; it is received from the State 6 to 9 months after the fact.
More importantly, empirical data about how different areas are performing (Downtown,
Central Coast Plaza, Madonna Plaza, etc.) is non-existent.
Intuitively, it is reasonable to assume that current sales tax revenue trends reflect. the
increased competitive pressure from both the North and South County areas. However, it is
not possible at this time to identify which.sectors of the City's economy are being affected by
these retail changes, and without this information, it is difficult to fully evaluate all of the
factors affecting the City's retail base. For example, in reconciling the. City's sales tax
revenues with taxable sales by outlet, it is clear that the City receives a significant allocation
of revenues from the state-wide pool. The economic and legal factors supporting this
allocation are not known at this time. Overall, further research is required if we are to better
understand this important revenue source.
Because this need exists statewide, several consulting firms have recently developed software
programs specifically designed to develop and manage this kind of information. Services
available from these firms include:
• Performing audits to ensure that the City is correctly allocated its sales tax
revenues from the State.
0 Providing quarterly reports of sales tax activities by business type and area.
• Monitoring aberrations in sales tax allocations from the State.
• Working with businesses on possible changes in procedures (at no cost to them)
that can result in increased allocations to the City.
• Improving business tax collections by coordinating data base information.
Staff is currently reviewing the capabilities, costs and benefits of contracting with a firm
which specializes in providing these information services,and it is anticipated_that a decision
will be made in the near future.
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In concluding this discussion of sales tax revenues, the overall need to more comprehensively
evaluate the City's "economic engine" was recently discussed in the Council Notes, and the
City Administrative Officer and Director of Finance will be preparing a "white paper" on this
topic over the next two months.
Operating Proeram Expenditures
Section C also includes an overview of changes to the operating program budgets since the
adoption of the 1989-91 Financial Plan. Organized by function and program, the scheduling
includes the original budget, encumbrance carry-overs from the prior year, Council approved
changes to the budget since its adoption, proposed mid-year requests, and the resulting revised
budget if these requests are approved.
Proiected Fund Balances
Based on the Revenue Projections and Expenditure Summaries described above, this part of
Section C includes a summary of projected changes in fund balance for each of the City's
operating funds. Overall, it is projected that the City will retain its strong financial position.
However, the reduction of fund balances in key areas - most notably the General Fund -
underscore the need for the City to be concerned about its economic base and to develop
strategies and policies to ensure our continued long-term financial health.
The following is a summary of highlights and concerns regarding the City's projected financial
position at the end of the year:
General Fund
General Fund.balances are projected to be $4.02 million at the end of the fiscal year, which
represents a favorable variance of $389,000 from original budget projections. Although tax
revenues are projected to be less than original estimates by $240,000,this shortfall is offset by
beginning fund balances that are $671,000 higher than the budget projection. Ending fund
balances are projected to be 21% of operating expenditures, which is on target with the
Financial Plan policy of 20% (1989-91 Financial Plan, page B-9).
Capital Outlay Fund
Capital Outlay Fund balances, which are the primary funding source for the City's non-
enterprise capital improvement plan projects, are estimated to be $775,000 at the end of the
fiscal year, which is on target with original estimates of $1.03 million after adjusting for
$270,000 in mid-year budget requests.
Water Fund
It is very difficult to project water revenues, expenditures, and changes in fund balance for
the City's water system due to a variety of uncertainties'at this time, including:
• Changes in the level, nature, and compliance with the current mandatory water
conservation program and related costs of operation.
• Operating and capital program lists associated with the development and
operation of the City's groundwater sources.
Accordingly, no major changes have been made in the projected ending financial position for
the Water Fund. However, as discussed in the Overview section, a comprehensive evaluation
of water rates will be required later in the Spring as the impacts of water program needs and
requirements are further developed and defined.
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MID-YEAR BUDGET REQUESTS
O Section D of the report document provides the supporting documentation for the 1989-90 mid-
year budget requests and recommended amendments to the 1989-91 Financial Plan. The
following is a brief summary and description of the requested appropriations:
1989-90 1990-91
Operating Programs $ 427,200 $ 736,700
Capital Improvement Plan Projects 335,000 288,000
TOTAL $ 762,200 $1,024,700
For 1989-90, these changes represent an increase of 1.1% from original budget amounts, and
3.0% for 1990-91. As described below and more fully discussed in Section D, the primary
operating program change is the projected cost to operate and maintain the City's groundwater
wells: $359,900 is requested for the remainder of 1989-90 and $736,700 is projected for 1990-
91. The primary capital improvement plan change is the asbestos removal project at City Hall,
which is projected to cost $323,000 over the next two years.
Patrol Services - Radar Trailer
The Police Department has requested $6,600 to purchase a radar trailer to enforce vehicle
speed laws by educating drivers as to their individual vehicle speed. The trailer has a self-
contained radar unit that measures the velocity of approaching vehicles and then displays the
speed on a screen. The device is designed to remind motorists of the need to monitor their
speed in certain areas. The trailer will be rotated to various locations as part of the traffic
enforcement and education program. The trailer requires no support other than drop-off and
pick-up.
Groundwater Wells - Operations and Maintenance
Implementation of the groundwater program and the development of (6) producing wells will
require a recurring cost estimated at $736,700 per year for operations, maintenance, and one
additional Water Treatment Plant Operator lI position. For 1989-90,an adjustment of$359;900
is recommended to account for a partial year of operations.
Legal Services - Contract Service Requirements
The City Attorney's Office requires an additional $45,700 for the contract legal services
incurred during the current fiscal year due to the City Attorney vacancy from March 1989 to
November 1989, and due to the unanticipated departure of the Assistant City Attorney in
December 1989, a vacancy not expected to be filled until May 1990.
Personnel Administration - Classification Studies
Augmentation of the department's budget for contract services by $15,000 is recommended to
cover the unanticipated extra cost of hiring outside consultants to perform classification
studies as required by the City Employees' Association Memorandum of Agreement (MOA).
Groundwater Wells - Screening of Carbon Filtration Tanks
Screening the carbon filtration tanks at the Auto Parkway location with landscaping materials
from public view is recommended at a cost of $65,000. Most of the estimated cost is related
to the berming, block wall, and landscaping around the well. Since the ARC recommendation
is only to paint the filtration tanks, costs related to the Dalidio Well can be supported from
the existing operating budget. It should be noted that staff is currently reviewing other
screening options with the businesses in proximity to both of these sites and will return to
Council at a later time with specific recommendations. Decisions about the appropriate timing
for landscaping around the Auto Park Well can be determined at that time.
Mission Plaza Projects
Annual funding for future Mission Plaza improvements is recommended at a minimum level
of $50,000 annually.
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City Hall Asbestos Removal
Funding is requested in the amount of$180,000 for Fiscal Year 1989-90 and $143,000 for 1990- -
91 in order to remove and dispose of potentially hazardous asbestos contained in the sprayed-
on acoustical ceilings throughout the upstairs at City Hall. Related costs include replacing the
existing sprayed-on ceilings with either glue-on tile ceilings or suspended T-bar ceilings
(whichever is more appropriate); extending and replacing electrical and mechanical
connections; and repairing and painting walls and coverings.
City Hall Office Systems Furniture
Installation of office systems furniture (OSF) throughout remaining areas of City Hall is
recommended at a cost of $45,000 for 1989-90 and $90,000 for 1990-91. Thirty work stations
would be installed summarized as follows: Community Development (21); City Attorney (2);
and Finance (7).
MISSION PLAZA RESERVE POLICY
During the 1987-89 Financial Plan preparation process, development of a funding policy for
Mission Plaza projects was a major topic of discussion. In follow-up to those budget
discussions, Resolution No. 6306 was adopted by the Council in September of 1987 which
established a policy of committing a minimum of $50,000 annually for Mission Plaza
improvement projects. As noted in the staff report which accompanied the resolution, the
policy is a statement of intent, and does not specifically appropriate funds.
In December of 1989, Councilmember Rappa requested a summary on the.status of funds set
aside under this policy for Mission Plaza projects. Provided in Exhibit I is the response to this
request from the Director of Finance via the Assistant City Administrative Officer, which
includes Resolution No. 6306 and the accompanying agenda report as an attachment.
Councilmember Rappa's request raises at least two questions regarding the funding of Mission
Plaza projects and the use of "reserves" in the City's financial planning and reporting system:.
6 Were funds set aside in the 1989-91 Financial Plan as provided in the statement
of intent under Resolution No. 6306?
As indicated in the attached memorandum, the answer to this question is no:
the 1989-91 Financial Plan does not specifically provide for fund transfers nor
designate specific Mission Plaza projects, although thereare several categories
of CIP projects(downtown sidewalks and bulb-outs;open space acquisition)that
could potentially be programmed as improvements to the Mission Plaza area as
specific project proposals for funding are developed and submitted for Council
approval.
• What .is the best method of funding Mission Plaza improvements and ensuring
that desired projects are conceived, developed, and implemented?
Answering the last question is not as easy as answering the first one. The following is a
discussion of two issues related to the last question: organizational responsibility and funding
approaches.
Oreanizational Responsibility
In the past,the organizational responsibility for planning and executing Mission Plaza projects
has been unclear as three departments currently have operational responsibilities related to
Mission Plaza:
• Recreation, which is responsible for programming and coordinating activities
in the Mission Plaza area.
• Public Works, which is responsible for maintaining Mission Plaza as well as O
managing selected improvement projects.
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0 Community Development, which has General Plan responsibilities that address
Mission Plaza in its various Elements and related planning goals.
To clarify organizational responsibilities, two actions are recommended
• Assigning of responsibility for Mission Plaza Capital Improvement Plan (CIP)
project programming to the Department of Community Development.
• Establishing of a separate program activity in the CIP section of subsequent
Financial Plans specifically for Mission Plaza projects.
Fundin¢ Approaches
Resolution No. 6306 provides for the establishment of a Mission Plaza Reserve, which has its
roots in earlier budgets dating back to 1984-85. However, in discussions with previous City
Finance Directors, the term"reserve"has experienced conflicting meanings within the context
of previous budget documents and Council discussions versus generally accepted accounting
principles in local government finance. As described in the Budget Glossary of the 1989-91
Financial Plan(page I-8), the term"Reserve" means that portion of fund balance that is legally
restricted for a specific purpose and therefore unavailable for aoorooriation. Examples
include portions of fund balance reserved for encumbrances (purchase contract commitments
carried-over from a previous fiscal year), inventories,prepaid expenses,or debt service reserve
requirements under bond covenants. In these instances, fund balance resources have been
committed to meet specific future obligations, and are not available to fund current or future
programs and projects.
In this context, the term "Reserve" is probably not appropriate for the intent,of the Mission
Plaza Reserve Policy, which is to specifically set funds aside for future appropriation. Three
alternatives are available in establishing financial planning and reporting systems designed
to meet the intent of this policy:
il
Designated Portion of the Capital Outlay Fund Balance
This is the approach that has implicitly been used in accounting for the "Mission Plaza
Reserve"in past budgetary and audited accounting documents: a portion of the Capital Outlay
Fund balance was designated for future Mission Plaza projects. There are several conceptual
difficulties with this approach:
• Designations are not readily identifiable in. budgetary and accounting
documents.
• There is not a specific revenue source for this program other than a portion of
existing resources. As such, without a detailed understanding of the City's
overall financing system, it can give the appearance that there are more total
resources available than actually exist.
• Accounting difficulties in tracking and identifying additions (and more
significantly, deductions), from designated balances can lead to
misunderstandings and mispostings of designated balances.
• Due to these factors, Council policy intent can be overlooked or misinterpreted
over time.
Establishment of a Separate Mission Plaza Fund
Under generally accepted accounting principles, establishing a separate fund (accounting.
entity) is the preferred method of accounting for resources or revenues that are restricted for
specific purposes. With this approach, the cumulative effect of additions (revenues) and
deductions(expenditures) from fund balances can be readily determined. However, generally
accepted accounting principles discourage the establishment of separate funds unless
specifically required to meet outside legal requirements or compelling financial reporting and
accounting needs.
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As discussed in the 1989-91 Financial Plan (page I-9), the City has established three Capital
Project Funds to account for non-enterprise capital projects and acquisitions:
Capital Outlay Fund
Parkland Development Fund
Equipment Replacement.Fund
These separate funds were established in order to account for projects and acquisitions funded
through multiple funding sources or legally restricted revenues. As the "Mission Plaza
Reserve"has historically been funded through the Capital Outlay Fund,establishing a separate
fund would not appear to meet the criteria previously used in establishing the three existing
Capital Project Funds.
Capital Appropriation Policy
Under the City's Capital Appropriation Policy (page E-2 of 1989-91 Financial Plan), adoption
of the CIP Budget does not automatically appropriate funding for specific project phases. The
CIP appropriation is made to the capital control account based on the projects designated for
funding in the CIP, and is held there pending specific authorization to release and
appropriate funds to a specific project account.
CIP appropriations to the capital control account are available for appropriation to specific
project accounts for up to three years after Financial Plan adoption. Under this concept, all
projects are essentially funded through "designated portions of fund balance" which are set
aside through the CIP Budget for subsequent appropriation to a specific project account.
Directly submitting CIP requests in a minimum amount of $50,000 annually for Mission Plaza
projects to bg included with the overall CIP appropriation is the recommended approach in
meeting the intent of Resolution No.. 6306. Accordingly, the Department of Community
Development has submitted a CIP project request which has been included with the Mid-Year
Budget Requests provided in Section D. ^
SUMMARY
The Mid-Year Budget Review document for Fiscal Year 1989-90 has been prepared in order
to present the Council with a formal review of the City's financial condition at the mid-point
of the fiscal year and to recommend appropriations changes as needed since adoption of the
1989-91 Financial Plan. Accordingly, this transmittal memorandum has outlined the City's
overall financial condition at this point in the fiscal year,reviewed emerging financial trends,
projected the City's financial position at the end of the year, summarized recommended mid-
year requests, and discussed the City's use of reserves and designated fund balances in the
context of the Mission Plaza Reserve Policy adopted by the Council in September of 1987.
The Department of Finance will be prepared to respond to any questions the Council may have
regarding this report at their.March 5, 1990 meeting. If you have any questions in the interim,
or require additional information, please do not hesitate to contact us.
90MIDTR/FRWDMEMO.WPF
A-7
EXHIBIT 1
December 20, 1989
MEMORANDUM
TO: Ken Hampian, .Assistant City Administrative Officer
FROM: William C. Stader, Director of Finance up
SUBJECT: MISSION PLAZA RESERVE
In response to your request of December 13, 1989, the attached summary of changes in the
Mission Plaza Reserve through Fiscal Year 1988-89 has been prepared. As reflected in the
summary, $584,721 has been added to the Reserve through the budget process since it was
established during Fiscal Year 1984-85. This amount has been supplemented by $131,744.1n
allocated interested earnings. During this same period, $607,850 in expenditures have been
charged to the Reserve, and $71,000 remains to be expended based on the 1987=89 Financial
Plan. At this timc,.a small balance remains ($37,615) to.fund additional projects.
All approved Council additions to the Reserve have been made through the last completed
Fiscal Year (1988-89). The 1989-91 Financial Plan docs not specifically provide for a
supplemental transfer to the Reserve nor does it designate additional Mission Plaza projects.
However, the Council has the authority to make changes to the 1989-91 Financial plan and
1989-90 Budget at any time during the period covered by this document. Accordingly, the
Mission Plaza Reserve Policy will be reviewed during the Mid-Year Budget Review. Based on
the City's current Capital Appropriation Policy (page E-2 of the 1989-91 Financial Plan) and
Generally Accepted Accounting Principles, a recommendation to discontinue this "Reserve"
concept while allowing for appropriate policy support for Mission Plaza projects will be
presented at that time.
If you have any questions concerning the attached .summary, or require additional
information, please do not hesitate to contact me.
Attachments:
A. Summary of Changes in the Mission Plaza Reserve
B., Council Agenda Report of September 1, 1987 adopting Resolution 6303 (1987 Series)
XEMOMPRESERV.WPF
A-8
.- Attachment A
SUMMARY OF CHANGES IN THE MISSION PLAZA RESERVE
1984-85(1) 1985-86 1986-87(2) 1987-88 1988-89
Beginning Balance 0 409,721 479,275 487,626 172,830
Additions.
Budget Allocations 409,721 75,000 50,000 50,000
Interest Distribution 3$,299 38,555 26,913 27,977
Total Additions 409,721 113,299 38,555 76,913 77,977
Project Uses:
Mission Plaza walkway adjacent to Sebastian's 331 3,531
Mission Plaza Step Replacement 10,439
Mission Plaza Fencing 9,736
Mission Plaza Extension-Monterey Side 5,652 29
Mission Plaza Extension-Higuera Side 14;270 27,282 - 338,147 36,249
Mission Plaza Footbridge 3;648 2,562 48,456
Naman Patio Construction 81,371
Amphitheater Construction 1,575 24,572
Total Project Uses 0 43,745 30,204 391,709 142,192
Sub-Total 409,721 479,275 487,626 172,830 108,615
1987-89 CLP Projects Remaining:
Restroom Enlargement 57,000
Kiosk Construction 14,000
Total CIP Projects Remaining 71,000
Ending Balance 409,721 479,275 487,626 172,830 37,615
NOTES.
1. 1984-85 is the fust year that the Mission Plaza Reserve was formally established.
Funding for the reserve was provided from the unexpended balance remaining from
prior year Mission Plaza project budgets.
2. 1987-88 is the first year affected by Resolution 6303(Attachment 9).
A-9
MEETING OATE:
SII; !� �glli city o f san-aAjs oB�spo 9-1-87
COUNCIL AGENDA REPORT ITE M
FROM:
Toby Ross. Assistant City Administrative Officer
SUBJECTMission Plaza Reserve Policy
CAO RECOMMENDATION:
Adopt. :I rf:S;olllt it111 rf•:Iff " fill l Ill; t.lo. I.i III1 l ;nJl.l t:)' l ililir SG0 •000
.111!1 IIaI l\' to I,i1,• }fIS� 1t"II I'la%�: I'••': ::'`. .
BACKGROUND:
Al. ICs Juni: :;0. IMVi uu:elinthe Pity faun" it ;13,pru\ctl .1 ;uliity to ap3troyriat•
S50.000 annually to a resttr•ve for ose in Mission Pl:ar.a. While there appeared to hr:
lio disa£reenncut on desir;11"ility of such :a reserve p(1licv, the motion w.as act.uaiiv
Ipproct:.+ t)o a :3-2 vote: with t.ht• dissenting Coioici Imemhers a;lrr,ssing rnnr.Crn :ILnut. ;
I
LhI: I:uI};cal r
(if tl:e neat i ou . Une ::lice if i c. C011cf•1`It wu:: Lha( Che: C i t.y Ctluue i I ertrinot r
appruprial-tr money for n1orC Lhatt unr• year :It. .I t:iuu:. Til Is poliCy is :I sL+ILcml.nt [it'lItt:nt. :111(1 does not act.u:-1.11%• :ap3trulu iatr Ilic lnoil--v tiII UiaL there i>: no legal
Cunf l iei (se• ar.t:arhtrtl nit•.mol .
Possible :;ourccs: for the murrey wart: disl:ussrd :at stirol l n;`,Ill, f1:o !u:1 i(1 sour":.::: I>e•ri.-
stl;(I!tsteel: the Capital Outlay Fund and the Cumnutnity Promotion formula. Dnriog Cha
disCilssiun tine Council seemed to favor Genet-al Fund SOLII•CCS'• which both of Lh'-se
are. but split on preferences . U1Limately. the budget u:ls adupLea with S50.000
a ropriated lu the Mission f]aza Reserve from the Capital Outlay Fund
The alipropriate location for the policy was not resolved during the discussions . A
logical location within the budget is in the Revenue Dist.ributiuu Policy under
either 1 . Property Tax Distribution or 3. The Community Promotion Program. Another
option would be to include: the Mission Plaza Reserve Policy in the City Council
Policies and Procedures Manual in Section -, : ' Parks and Recreation.
Alternatives
No Action - The City Council has a policy on Mission Plaza as adopted in June 1987.
Tile adopted budget is consistent with that policy and no additional action is
required.
Amend Budget - The. City Council could adopt specific language to be included in the
budget. Since the 1987-89 Financial Plan is already published this would have
limited effect until the 1988-89 budget is considered.
Clarify Policy - The City Council could adopt a resolution clarifying its intent
regarding the purpose. wording. location and source of financing for the Mission
Plaza Policy. This is staff's recommendation.
Fiscal Impact - The policy expresses the City Council's intention to contribute
$50.000 annually to the Mission Plaza Reserve. Adequate money is available from the
Capital Outlay Fund and/or from the Community Promotion formula.
i
A-10
Q%%jjPA#j city of san Luis oBrspo
COUNCIL AGENDA REPORT
Recommendation. - The City Council should adopt a resolution to reaffirm the
Council ' s policy to contribute $50.000 per year to the Mission Plaza Reserve; to
consider including a Mission Plaza RrrscrvF: Flo lir.y in the 1989-91 Financial Plan: to
ill C] Lid e the content of till- resolution ill the City CuunCiI Policies and Procedures
?]atinl:r] : and to support the reserve wit], money fl-un, Huth t9,e rzipi till out.lsiy Fund and
t he ('nIII III i t:y PI.UnIanti
CE::Int
i
i I(tan]ut int:
I
I
i
I
I
i
A-11 ��
RESOLUTION NO. 6303 ( 1987 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
WHEREAS. Mission Plaza is a significant community asset; and
WHEREAS, the popularity and significance of Mission Plaza continually requires
capital replacement and improvement : and
WHEREAS. the City Chwu:il recognizes the importance of Mission Plaza to
citizens and visitors nrid rhat continued financial support. of .the fociliti,•s is
in th(i hest loot' tort-n- int rrsts of the City: and
WHEREAS , the! 1987 fta Financial 111;31, includes ,r policy providing; for the City
Council to set aside. reserves for capital projects determined to be in the best.
long-term interests of the. City.
BE IT RESOLVED by the Council of the City of Sart Luis Obispo as follows:
1 . • There shall he a Mission Plaza Reserve for the improvement and replacement
of the facilities in Mission Plaza .
2. The Council will contribute. 550.000 annually to the Mission Plaza Reserve
from the Capital Outlay fund and the Community Promotions Program with specific
sources to be determined at the time of the contribution beginning with the
1988-89 budget.. The size of the reserve will be evaluated with each new
two-year financial plan ..
3. The Council will consider including a policy on Mission Plaza reserves in
the 1989-91 Financial Plan.
4. The City Clerk shall incorporate the content of this resolution in the City
Council Policies and Procedures Manual .
On motion of Councilwoman Dov_ey ___ seconded by Councilwoman Raopa and on
the following roll call vote_
AYES: Councilmembers Dovey, Rappa, Griffin, Settle and Mayor Dunin
NOES: None
ABSENT: None
the foregoing resolution was passed and adopted this 1st day of September.
1987.
ATT I ^ •
PamJ4a Voges. City C1 tk ayor Ron Dunin
APPROVED:
� t City dministrat ve Officer City At ney .
/Finance Director
A-12 R 6303
luis ®
Cl of sAn
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100
(805) 549-7140
August 3. 1987
MEMORANDUM
1'n: {luiurra,hIe. Mayor ;Ind Mrmhe-rs o1 t h • C i I.y c:mml:i I
�
From : Roper I'iCgr
nrt itV rllluprnr
! '
Suhjr-ct : Appropriation Authority (Missieui Plaza
At the Council meeting of .Juiut 30. 1985 . ,, question was raised about
Council 's authority to make, multi--year hudget commitments. Specifically,
whether Council could establish an ongoing, annual $50.000 appropriation
for a Mission Plaza reserve.'
Article VIII of the. Charter addresses fiscal administration. Section 802
established the requirement for an annual budget Section 804 provides:
Upon final adoption. the budget shall be it, effect for- the
ensuing, fiscal year . From the effective date of the budget , the
several amounts stated therein as proposed expenditures shall be and
become appropriated to the various departments or activity therein
described. All appropriations shall lapse at the end of the fiscal
year to the extent that they shall riot have been expended or lawfully
encumbered. (Emphasis supplied)
This language is clear and consistent with standard municipal law and
practice. The budget is annual and appropriations under that budget
cannout outlive the budget. The Council has no authority to make a
commitment of multi-year appropriations to a reserve fund.
Of course. Council can establish aop licy regarding a desired .level of
funding for a particular reserve but the. Tactual appropriation must. be
separately made each year during the budget process .
Please call if you have any questions.
RP:ajr
c: CAO
T. Ross
D. Flynn
i
A-13
Section B
EXCERPTS FROM THE DECEMBER 1989
MONTHLY FINANCIAL REPORT
February 21, 1990
MEMORANDUM
TO: All Monthly Financial Report Users
FROM William C. Statler, Director of Finance
SUBJECT: DECEMBER 1989 MONTHLY FINANCIAL REPORT
OVERVIEW
As reflected in the accompanying financial statements, the City's overall financial position
through December of 1989. is generally on target with budget projections. With 50% of the
fiscal year complete, revenues are at 51% of annual projections, with operating
expenditures/encumbrances at 48% of annual appropriations. Except as noted below, budget
variances for revenues and operating expenditures are distributed relatively evenly by
source, function, and type. However, as discussed below, sales tax revenue trends
continue to be a concern, and will be reviewed in greater detail during the Mid-Year Budget
Review scheduled for March 5, 1990.
REVENUE HIGHLIGHTS
As noted above, 51% of all projected revenues have been received through December of 1989.
The following is a summary of significant variances from target projections of 50%:
Tax Revenues
Receipts from tax revenues at this point in the fiscal year are generally consistent with
prior year trends. However, current sales tax revenue trends continue to be an area of
concern. Compared with receipts through December of last fiscal year, sales tax revenues to
date are relatively flat, reflecting an increase of only 1.5% over the previous year, whereas
an increase of 6% was projected in the 1989-91 Financial Plan. Generally, a revenue
shortfall of 5%-6% in any one revenue source would not be a concern; however, due to the size
and importance of sales tax revenues ($6.1 million in 1988-89, which is 30% of all
non-enterprise revenues), a 6% decrease has a negative impact on General Fund balances of
almost $400,000. The significance of this trend if it continues will be evaluated in greater
detail at the mid-year review.
Fines and Forfeitures
The favorable variance for fines and forfeitures is primarily due to a higher than usual
($57,000) collection of penalties for delinquent property taxes.
Investment Revenues
As reflected in the revenue summary, 73% of estimated investment revenues have been realized
through December of 1989, which is reflective of higher overall yields and stronger cash
balances than originally projected.
B-1
J
Subventions and Grants
Of the $4,131,400 in revenues projected from this source, $1,125,500 is related to capital
projects which have not yet been initiated, and as such, funding has not yet been received.
Additionally, only five months of gas tax allocations have been distributed by the State
through December, and only 25% of TDA allocations have been received from the County.
Adjusting for these grant funded capital projects and time delays in receiving scheduled
payments, subvention and grant revenues are on target at this point in the fiscal year.
Other Revenues
The favorable.variance in this category is primarily due to two factors: receipt of planned
refunds from insurance and PERS at the beginning of the fiscal year; and the receipt of FAU
assignments carried-over from the previous fiscal year.
EXPENDITURE HIGHLIGHTS
As noted above, 48% of operating expenditures have been made or encumbered through December
compared with target levels of 50%. Expenditures and encumbrances are relatively evenly
distributed between the six major functions of General Government, Public Safety, Community
Development, Leisure, Cultural, and Social Services, Public Utilities, and Transportation, as
well as by type (salaries and wages, utilities and communications, contract services, etc.).
Notable exceptions include:
General Government
Annual liability insurance premiums for the fiscal year were paid in full during the month of
October. Adjusting for this expenditure category, General Government is 50%
expended/encumbered as of December 1989.
Liability Insurance
As noted above, the City's annual liability premiums were paid during the month of October,
which accounts for this category being 87% expended.
Miscellaneous Expenses
This category includes expenditures and encumbrances for annual Human Relations and
Promotional contracts which were approved by the Council in July of the fiscal year.
SUMMARY
As noted in the Table of Contents, all of the schedules provided in the Monthly Financial
Report are generated from more detailed transaction reports produced by the City's Financial
Management Information System (FMIS).. As such, additional supporting or detail information
is available from the Department of Finance upon request.
If you have any questions concerning the Monthly Financial Report for December 1989, or
require additional information, please do not hesitate to contact me.
MoFiMtpt/NovMemo
B-2
I
Revenue Status • 7/89
OPERATING REVENUES
Tax Revenues
Licenses & Permits
Fines & Penalties
Investments
Subventions & Grants
'Service Charges
Enterprise Revenues
Trust & Agency
Other Revenues
TOTAL REVENUES
®ACTUAL REMAINING
Fiscal Year 50% Complete
REVENUE SUMMARY
July 1989 -December 1989
Year-to-Date Estimated
Revenue Source Revenues Revenues Variance Realized
Taxes 7,880,092 15,129,200 (7,249,108) 52.09%
Licenses &Permits 113,390 222,200 (108,810) 51.03%
Fines & Forfeitures 378,891 .545,090 (166,109) 6M2%
Investment Revenues 1,344,965 1,836,500 (491,535) 73.24%
Subventions &Grants 1,297,486 4,131,400 (2,833,914) 31.41%
Service Charges 742,859 1,769,202 (1,026,343) 41.99%
Enterprise Revenues 3,459,704 7,323,400 (3,863,696) 47.24%
Trust& Agency Revenue 160,851 564,900 (404,049) 28.47%
Other Revenues 962,732 540,000 422,732 178.28%
Total Revenues 16,340,970 .32,061,802 (15,720,832) 50.97% '
B-3
Program Expenditures • 7/89-12/89
OPERATING PROGRAMS
General Government
Public Safety
Community Developmnt
Leisure 8 Cultural
Public Utilities
Transportation
TOTAL EXPENSES
® ACTUAL D REMAINING
Fiscal Year 56% Complete
OPERATING PROGRAM E"ENDIT ME SUMMARY
July 1989 - December 1989
Encumbrances
Operating Programs &Expenditures Appropriation variance Expended
General Government 2,396,888 4,390,331 1,993,443 54.599
Public Safety 3,973,926 8;519,067 4,545,141 46.659
Community Development 1,178,781 3,125,380 1,946,599 37.72%
Leisure& Cultural Services 1,662,280 3,338,197 1,675,917 49.809
Public Utilities 2,404,275 4,778,610 2,374,335 50.319
Transportation 1,213,762 2,470,630 1,256,868 49.13%
Total O Operating g Expenditures 12,829,912 26,622,215 13,792,303 .48.19%
B-4
Operating Expenditure Status 7/89 - 12/89
OPERATING EXPENSES
Salaries & Wage
a
Utilities
Liability Insurance
Travel & Dues
Rents & Leases
Contract Services
Office Expenses
M - -
Materials
Minor Equipment
Mise Expenses
TOTAL EXPENSES
® ACTUAL D REMAINING
Fiscal Year 50% Complete
OPERATING EXPENDITURE SUAIMAR Y
July 1989 - December 1989
Encumbrances
Expenditure Type &Expenditures Appropriation Variance Expended
Salaries&Wages 7,401,014 15,937,230 8,536,216 46.44%
Utilities&Communications 698,973 1,458,420 759,447 47.93%
Liability Insurance 472,062 .539,700 67,638 87.47%
Travel, Maetings&Dues 142,675 298,426 155,,751 47.8IL%
Rents& Leases 8,682 41,200 32,518 21.07%
Contract Services 1,548,933 3,508;451 1,959,518 44.15%
Office Expenses 242,116 627,789 385,613 38.57%
Operating Materials 1',477,683 2,671,577 1,193,894 55.31%
Minor Equipment 272,452 779,386 506,934 34.96%
Miscellaneous Expenses 565,322 760,036 194,714 74.39%
Total Operating Expenditures 12,829;912 26,622,215 13,792,303- -- 48.19%
B-5
Capital Project Status • 7/89 - 12/89
CAPITAL EXPENDITURES
Capital Outlay
Equip Replacement
Parkland Development
Gas Tax/TDA
Water
Sewer
Parking
Transit
Whale Rock
TOTAL CAPITAL
®ACTUAL O REMAINING
Fiscal Year 50% Complete
C
CAPITAL PROJECT EXPENDITURE SUMMARY
July 1989 - December 1989
Encumbrances
Fund &Expenditures Appropriation Variance Expended
Capital Outlay 1,058,452 10,869,515 9,811,063 9.74%
Equipment Replacement 416,642 1,239,558 822,916 33.61%
i aikIaad Development 273,6221,2_,5,028 :51,406 22.16%
Gas Tax/TDA 365,314 924,638 559,324 39.51.%
Water 1,251,817 4,298,586 3,046,769 29.12%
Parking 3,659,672 4,005,048 .345,376 91.38%
Sewer 1,091,405 31,614,220 30,522,815 3.45%
Transit 0 20,885 20,885 0.00%
Whale Rock 1.19,383 24,140 (95,243) 494.54%
Total Capital Expenditures 8,236,307 54,231,618 45,995,311 15.19.%
B-6
Section C
FINANCIAL CONDITION SUMMARIES
REVENUE PROJEc" IONS
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
TAX REVENUES
Property Tax 3,363,676 3,600,000 3,600,000 0
Sales & Use Tax 6,047,328 6,600,000 6,250,000 (350,000)
Transit Lodging Tax 1,316,638 1,350,000 1,450,000 100,000
Franchise Tax 510,274 546,500 546,500 0
Business License Tax 528,325 567,700 567,700 0
Utility Users Tax 2,186,115 2,365,000 2,300,000 (65,000)
Real Property Transfer Tax 136,706 100,000 175,000 75,000
Total Tax Revenues 14,089,062 15,129,200 14,889,200 (240,000)
LICENSES AND PERMITS
Bicycle Licenses 4,364 4,600 2,000 (2,600)
Construction Permits 356,483 210,000 215,000 5,000
Street&Curb Permits 4,200 3,500 4,500 1,000
Other Licenses&Permits 4,761 4,100 4,500 400
Total Licenses and Permits 369,808 222,200 226,000 3,800
FINES AND FORFEITURES
Vehicle Code Fines 232,694 235,000 250,000 15,000
Parking Fines 165,535 250,000 300,000 50,000
Other Fines and Forfeitures 65,774 60,000 125,000 65,000
Total Fines and Forfeitures 464,003 545,000 675,000 130,000
INVESTMENT AND PROPERTY REVENUES
Investment Earnings 2,440,703 1,826,500 2,308,000 481,500
Rents& Concessions 10,328 10,000 91500 (500)
Total Investment and Property Revenues 2,451,031 1,836,500 2,317,500 481,000
SUBVENTIONS AND GRANTS
Motor Vehicle In-Lieu 1,383,109 1,444,800 1,400,000 (44,800)
Homeowners&Other Property Tax In-Lie 90,553 59,000 59,000 0
Trailer Coach In-Lieu 6,866 18,000 18,000 0
Cigarette Taxes 125,439 131,000 120,000 (11,000)
Other In-Lieu Taxes 35,857 34,800 34,800 0
SB 90 Reimbursements 59,996 40,000 80,000 40,000
Police Training 43,026 35,000 55,000 20,000
Gasoline Tax Subventions 518,185 508,300 540,000 31,700
Transportation Development Act 459,655 650,000 681,800 31,800
Other Transportation Grants 8,669 43,000 443,000 400,000
Parks and Recreation Grants 0 85,000 445,000 360,000
Community Development Block Grants 13,432 0 0 0
Total Subventions and Grants 29744,787 3,048,900 3,876,600 827,700
C-1
REVENUE PRO.' ;TIONS
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
SERVICE CHARGES-GOVERNMENTAL FUNDS
Planning& Zoning Fees 58,549 50,000 100,000 50,000
Subdivision Fees 20,115 20,000 20,000 0
Sales of Publications 13,776 13,000 13,600 600
Police Department Services 39,813 26,000 71,000 45,000
Fire Department Services 38,494 72,000 80,000 8,000
Plan Checking Fees 145,778 130,000 110,000 (20,000)
Engineering and Inspection Fees 8,037 9,000 9,000 0
Streets, Sidewalks & Curbs 18,549 0 25,000 25,000
Weed&Lot Cleaning 14,327 14,000 14,000 0
Zone 9 Reimbursements 0 25,000 255,000 230,000
Swimming Pool Revenues 106,586 111,100 111,100 0
Golf Course Revenues 240,685 292,000 .280,000 (12,000)
Park In-Lieu Fees 307,228 175,000 175,000 0
Other Parks & Recreation Fees 371,369 421,200 • 421,200 0
BIA Service Charges 32,106 32,000 32,000 0
Other Service Charges 52,387 107,000 107,000 0
Total Service Charges-Governmental 1,467,799 1,497,300 1,823,900 .326,600
SERVICE CHARGES-ENTERPRISE FUNDS
Water Operating Revenues 4,399,446 4,010,000 4,010,000 0
Sewer Operating Revenues 2,054,447 2,236,000 2,236,000 0
Parking Operating Revenues 668,821 937,500 837,500 (100,000)
Transit Operating Revenues 149,131 139,900 139,900 _ 0
Total Service Charges-Enterprise 7,271,845 7,323,400 7,223,400 (100,000)
TRUST AND AGENCY REVENUES
Whale Rock Operating Revenue 562,778 564,900 564,900 0
Total Trust and Agency Revenues 562,778 564,900 564,900 0
OTHER REVENUES
Sales of Property&Equipment 3,500 20,000 50,000 30,000
Contributions and Project Reimbursements 25,000 17,000 17,000 0
Assigned FAU Funds 59,955 0 281700 281,700
PERS Surplus 0 300000 320000 20,000
Insurance Refunds 0 200000 342500 142,500
Other Miscellaneous Revenues 130,448 3,000 25,000 22,000
Total Other Revenues 218,903 540,000 1,036,200 496,200
TOTAL REVENUES 29,640,016 30,707,400 32,632,700 1,925,300
C-2
OPERATING PROGRE S EXPENDITURES
PUBLIC SAFETY
Changes
Original Encumbrances/ MOA / Mid-Year Revised
Budget Carry-overs Other Changes Budget Requests Budget
POLICE PROTECTION
Administration 377,300 41,235 418,535
Investigative Services 626,200 626,200
Patrol Services 2,531,800 4,611 6,600 2,543,011
Support Services 939;400 939,400
Crime Prevention 6,900 6,900
Total Police Protection 4,481,600 45,846 0 6,600 4;534,046
FIRE AND ENVIRONMENTAL SAFETY
Administration 267,300 59,922 327,222
Emergency Response 2,533,300 13,915 129,215 2,676,430
Hazard Prevention 342,800 16,856 17,125 376,781
Training Services 174,800 (395) 4,670 179,075
Technical Services 259,700 9,943 4,670 274,313
Disaster Preparedness 51,000 44,800 95800
Hazardous Waste Collection 62,000 62,000
Total Fire and Environmental Safety 3,690,900 145,041 155,680 0 3,991,621
TOTAL PUBLIC SAFETY 8,172,500 190,887 155,680 6,600 8,525;667
I
c-3
OPERATING PROGr `,M EXPENDITURES
PUBLIC UTILITIES
Changes
C� Original Encumbrances/ MOA / Mid-:-Year Revised
Budget Carry-overs OtherChanges Budget Requests Budget
WATER SERVICE
Water Source Of Supply 1,072,400 359,900 1,432,300
Power Generation 16,100 1,024 17,124
Water Treatment 738,300 8,460 746,760
Water Distribution 441,100 441,100
Water Conservation 99,800 169,000 268,800
Water Customer Service 225,100 225,100
Water Administration/Engineering 251,5.00 5,596 257,096
Total Water Service 2,844,300 184,080 0 359,900 3,388,280
SEWER SERVICE
Wastewater Collection 269,500 2,854 272,354
Wastewater Pre-Treatment 81,400 81,400
Wastewater Treatment And Disposal 690,700 10,492 701,192
Wastewater Administration/Engineering 144,400 144,400
Total Sewer Service 1,186,000 13,346 0 0 1,199,346
WHALE ROCK RESERVOIR
Reservoir Operations 526,700 2,984 529,684
Fishing Program 21,200 _ 21,200
Total Whale Rock Reservoir 547,900 2,984 0 0 550,884
TOTAL PUBLIC UTILITIES .4,578,200 200,410 0 359,900 5,138,510
C-4
i
OPERATING PROGRA .EXPENDITURES"
TRANSPORTATION
Changes
Original Encumbrances/ MOA / Mid-Yea& Revised
Budget Carry-ovefs Other Changes Budget Requests Budget
i
STREETS AND FLOOD CONTROL
Streets - Pavement 544,300 8,000 552,300
Streets -Traffic Signals And Street Lights 350,400 350,400
Streets - General 439,200 12,944 442,144
Flood Control 66,200 1,000 67,200
Total Streets and Flood Control 1,400,100 11,944 0 0 1,412,044
PARKING
Operations,.Maintenance&Enforcement 521,700 j3,158 524,858
MUNICIPAL TRANSIT SYSTEM
Transit Vehicle Maintenance 82,800 2,228 85,028
Transit Vehicle Operations 289,400 289,400
Non-Vehicle Transit Maintenance 5,300 5,300
Transit Administration 64,000 64,000
Downtown Shuttle 90,000 901000
Total Municipal Transit 531,500 2,228 0 0 533,728
TOTAL TRANSPORTATION 2,453,300 17,330 0 0 2,470,63' `
C-5
OPERATING PROW M EXPENDITURES
LEISURE, CULTURAL, & SOCIAL SERVICES
Changes
Original Encumbrances/ MOA / Mid-Year Revised
Budget Carry-overs Other Changes Budget Requests Budget
PARKS AND RECREATION
Commissions& Committees 3,200 3,200
Recreation Programs
General Recreation Programs 651,100 10,000 661,100
Special Instruction 76,600 76,600
Trips&Outings 50,000 50,000
Athletic League Expense 90,200 90,200
Special Events Program 47,800 47,800
Sun& Fun 146,800 146,800
Aquatics Program 192,700 192,700
Maintenance Services
Landscape and Park.Maintenance 859,400 45,383 904,783
Swim Center Maintenance 127,800 . 1,773 129,573
Tree Maintenance 242,700 242,700
Golf Course Operations &Maintenance 260,000 (3,819) 256,181
Total Parks and Recreation 2,748,300 53,337 0 0 2,801,637
CITY/COUNTY LIBRARY
Library Building Maintenance 11,700 1,300 13,000
COMMUNITY PROMOTION
Promotional Coordinating Committee 1,000 1,000
Community Promotion Program 309,700 309,700
Total Community Promotion 310,700 0 0 0 310,700
HUMAN RELATIONS
Human Relations Commission 5;400 5,400
Human Relations Program 190,600 16,860 207,460
Total Human Relations 196,000 16,860 0 212,860
TOTAL LEISURE, CULTURAL, &
SOCIAL SERVICES 3,266,700 53,337 18,160 _ 0 .3,338,197
C�
c-6
OPERATING PROGRA. EXPENDITURES
COMMUNITY DEVELOPMENT
Changes
Original Encumbrances/ MOA / Mid-Year Revised-
Budget Carry-overs Other Changes Budget Requests Budget
PLANNING
Commissions & Committees 184,500 184,500
Planning 743,600 37,606 781,206
Land Use Element 210,300 210,300
Circulation Element 7,100 109,915 63,000 180,015
Park&Rec Element 81,700 81,700
Total Planning 1,227,200 109,915 100,606 0 1,437,721
CONSTRUCTION DEVELOPMENT
Engineering 996,900 259 997,159
Building And Safety 541,700 541,700
Total Construction Development 1,538,600 259 0 0 1,538,859
ECONOMIC DEVELOPMENT
Business Improvement Area 143,800 5,000 148,800
TOTAL COMMUNITY DEVELOPMENT 2,909,600 _ 115,174 100,606 0 3,125,380
C-7
OPERATING PROGF M EXPENDITURES
GENERAL GOVERNMENT
changes
Original Encumbrances/ MOA / Mid=Year Revised
Budget Carry-overs Other Changes Budget Requests Budget
LEGISLATION AND POLICY
City Council 96,800 (609) 96,191
GENERAL ADMINISTRATION
City Administrative Officer 388;800 20,000 5,904 414,704
Public Works Administration 319,700 35,000 354,700
Total General Administration 708,500 55,000 5,904 0 769,404
LEGAL SERVICES
City Attorney 206,300 45,700 252,000
CITY CLERK SERVICES
Administration And Records 232,300 33,192, 265,492
Elections 39,900 39,900
Total City Clerk Services 272,200 0 33,192 0 305,392
ORGANIZATIONAL SERVICES
Financial Administration 785,400 785,400
Personnel Administration 318,600 25,316 15,000 358,916
-' Wellness Program 42;500 42,500
Information Systems Management 65,200 65,200
Other Support Services 919,200 71,315 60,088 1,050,603
Total Organizational Support Services 2,130,900 96,631 60,088 15,000 2,302,619
BUILDINGS AND EQUIPMENT
Building Maintenance 410,200 (10,000) 400,200
Vehicle And Equipment Maintenance 325,100 125 325,225
Total Buildings and Equipment 735,300 (9,875) 0 0 725,425
TOTAL GENERAL GOVERNMENT 4,150,000 141,756 98,575 60,700 4,451,031
C-8
i
CHANGES IN FUND :LANCE
GENERAL FUND
1988=89 1989-90
Original Revised
- Actual Budget Projection Variance
Revenues
Tax Revenues 12,590,908 12,806,500 12,566;500 (240,000)
Licenses and Permits 369,808 222,200 226,000 3,800
Fines and Forfeitures 464,004 420,000 .525,000 105;000
Investment and Property Revenues 780,318 587,900 635,000 47,100
Subventions and Grants 1,699,520 1,768,600 1,766,800 (1,800)
Service Charges 1,104,865 1,205,300 1;276,900 71,600
Other Revenues 41,534 500,006 662,500 162,500
Total Revenues 17,050;957 17,510,500 17,658,700 148,200
Expenditures
Public Safety 7,112,048 8,172,500 8,525,667 353,167
Transportation 1,188,183 1,400,100 1,412,044 11,944
Leisure, Cultural, and Social Services 2,842,987 3,255,000 3,325,197 70,197
Community Development 2,005,983 2,765,800 .2,976,580 210,780
General Government 3,451,923 4,150,000 4,451,031 301,031
Total Program Expenditures 16,601,124 19,743,400 20,690,519 947,119
Reimbursed Expenditures (814,600) (1,457,800) (1,457,800) 0
Total.Expenditures 15,786,524 18,285,600 19,232,719 947,119
Other Sources(Uses)
Operating Transfers In 233,951 954,800 954,800. 0
Operating Transfers Out (615,806) (751,300) (751,300) 0
Expenditure Savings 0 320,500 320,500 0
Total Other Sources(Uses) (381,855) 524,000 524,000 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 882,578 (251;100) (1,050,019) (798,919)
Fund Balance, Beginning of Year 4,188,643 3,882,900 5,071,221 1,188,321
Fund Balance, End of Year 5,071,221 3,631,860 4,021,202 389,402
1
C-9
CHANGES IN FUN" BALANCE
LIBRARY FUND
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Tax Revenues 84,092 90,000 90,000 0
Investment and Property Revenues 4,960 2,000 6,500 4,500
Other Revenues 1,300 1,300
Total Revenues 89,052 92,000 97,800 5,800
Expenditures
Operating Programs
Library Maintenance 5,239 11,700 13,000 1,300
Total Expenditures 5,239 11,700 13,000 1,300
Other Sources(Uses)
Operating Transfers In
Operating Transfers Out (38,500) (152,500) (152,500) 0
Total Other Sources (Uses) (38,500) (152,500) (152,500) 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 45,313 (72,200) (67,700) 4,500
Fund Balance, Beginning of Year 30,060 72,200 75,373 3,173
Fund Balance, End of Year 75,373 0 7,673 7;673
C-10
CHANGES IN FUND ', ..LANCE
BUSINESS IMPROVEMENT AREA FUND
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Tax Revenues 66,401 72,700 72,700 0
Investment and Property Revenues 4,923 2,500 7,000 4,500
Service Charges 3.2,106 32,000 32,000 0
Other Revenues 2,688 3,000 3,000 0
Total Revenues 106,118 110,200 114,700 4,500
Operating Expenditures
Community Development 122,588 143,800 148,800 5,000
Total Expenditures 122,588 143,800 148,800 5,000
Other Sources (Uses)
Operating Transfer In 20,000 30,000 30,000 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 3,530 (3,600) (4,100) (500)
Fund Balance, Beginning of Year 41,944 33,206 45,474 12,274
Fund Balance, End of Year 45,474 29,600 _ 41,374 11,774
i
i
C-11
CHANGES IN FUNS 3ALANCE
GAS TAX/TRANSPORTATION DEVELOPMENT ACT FUND
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 72,928 0 0 0
Subventions and Grants
Gasoline Tax 512,185 502,300 540,000 37,700
TDA Sales Tax 219,817 300,000 357,200 57,200
Bridge Replacement Grant 0 400,000 400,000
Other Revenues (FAU Assigtments) 0 0
Total Revenues 804,930 802,300 1,297,200 494,900
Expenditures
Capital Projects 955,053 908,409 908,409
Total Expenditures 955,053 0 908,409 908,409
Other Sources (Uses)
Operating Transfers Out (705,713) (802,300) (802,300) 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (855,836) 0 (413,509) (413,509)
Fund Balance, Beginning of Year 1,269,345 0 413,509 413,509
Fund Balance, End of Year 413,509, 0 0 0
O
C-12
CHANGES IN FUND(-,:LANCE
PARK DEVELOPMENT FUND
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 90,587 60,000 115,000 55,000
Subventions and Grants 85,000 342,000 257,000
Service Charges (Park In-Lieu Fees) 2.93,653 175,000 175,000 0
Other Revenues 17,000 17,000 0
Total Revenues 384,240 337,000 649,000 312,000
Expenditures
Capital Projects 526,000 1,235,028 709,028
Total Expenditures 0 526,000 1,235,028 709,028
Revenues Over(Under) Expenditures 384,240 (189,000) (586,028) (397,028)
Fund Balance, Beginning of Year 974,256 845,400 1,358,496 513,096
Fund Balance, End of Year ' 1,358,496 656,400 772,468 116,068
i
C-13
CHANGES IN FUN' BALANCE
CAPITAL OUTLAY FUND
O 1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Tax Revenues 1,361,236 2,160,000 2,160,000 0
Investment and Property Revenues 124,821 425,000 458,000 33,000
Subventions and Grants 13,431 43,000 154,200 111,200
Service Charges 18,654 85,000 283,500 198,500
Other Revenues 39,301 341,700 341,700
Total Revenues 1,557,443 2,713,000 3,397,400 684,400
Expenditures
Capital Projects 1,446,767 7,409,000 11,139,515 3,730,515
Total Expenditures 1,446,767 7,409,000 11,139,515 3,730,515
Other Sources (Uses)
Operating Transfers In 24,240
Operating Transfers Out (586,540) (573,400) (573,400) 0
Proceeds from Debt Financing 3,800,000 3,800,000 0
Total Other Sources(Uses) (562,300) 3,226,600 3,226,600 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (451,624) (1,469,400) (4,515,515) (3,046,115)
Fund Balance,'Beginning of Year 5,742,056 2,503,600 5,290,432 2,786,832
Fund Balance, End of Year 5,290,432 1,034,200 _ 774,917 (259,283)
C-14
CHANGES IN FUND 'LANCE
EQUIPMENT REPLACEMENT FUND
_ 1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 154,030 145,000 180,000 35,000
Other Revenues
Damage Recovery 4,946 0
Sale of Surplus Property 29,300 20,000 _ 50,000 30,000
Total Revenues 188,276 165,000 230,000 65,000
Expenditures
Capital Acquisitions 316,197 874,400 1,239,558 365,158
Total Expenditures 316,197 874,400 1,239,558 365,158
Other Sources (Uses)
Operating Transfers In 555,250 714,800 714,800 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 427,329 5,400 (294,758) (300,158)
Fund Balance, Beginning of Year 1,744,734 1,806,400 _ _2,172,063 365,663
Fund Balance, End of Year 2,172,063 1,811,800 1,877,305 65,505
O
C-15
CHANGES IN FUN BALANCE
DEBT SERVICE FUND
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Expenditures
Debt Service 1,128,158 573,400 573,400 0
Total Expenditures 1,128,158 573,400 573,400 0
Other Sources (Uses)
Operating Transfers In 1,128,158 573,400 573,400 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 0 0 0 0
Fund Balance, Beginning of Year 481,700 481,700 481,700 0
Fund Balance, End of Year 481,700 481,700_ 481,700_. 0
C�
C-16
CHANGES IN FUND '( (LANCE
WATER FUND
1988-89 1989-W
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 366,111 240,000 420,000 180,006
Service Charges
Water Sales
Water.Service Charges 4,023,031 3,695,000 3,695,000 0
Sales to Cal Poly 37,646 55,000 55,000 0
Sales to Cuesta 17,687 15,000 15,000 0
Capital Improvement Charges 79,122 65,000 65,000 0
Connection Charges and Meter Sales 130,103 95,000 95,000 0
Hydroplant Revenues 77,125 65,000 65,000 0
Other Service Charges 34,732 20,000 20,000 0
Total Revenues 4,765,557 4,250,000 4,430,000 180,000
Expenditures
Operating Programs
Public Utilities 2,756,401 2,844,300 3,388,280 543,980
General Government 546,050 651,000 651,000 0
Capital Projects 977,721 1,425,000 4,363,586 2,938,586
Debt Service 550,194 _ 677,400 677,400 0
Total Expenditures 4,830,366 5,597,700 9,080,266 3,482,566
Other Sources (Uses)
Operating Transfers Out (40,000) (40,000) 0
Bond Proceeds 4,750,000 0
Total Other Sources (Uses) 4,750,000 (40,000) (40,000) 0
Revenues and Other Sources Over(under)
Expenditures and Other Uses 4,685,191 (1,387,700) (4,690,266) (3,302,566)
Worlong Capital, Beginning of Year 1,472,833 2,740,100 6,158,024 3,417,924
Working Capital, End of Year
Reserved for Debt Service 488,800 495,800 488,800 (7,000)
Unreserved 5,669,224 856,660 978,958 122,358
Total Working Capital 6,158,024 1,352,400 1,467,758 115,358
C-17
CHANGES IN FUN' BALANCE
SEWER FUND
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 64,249 50,000 35,000 (15,000)
Service Charges -
Customer Sales
Sewer Service Charges 1,995,046 . 2,166,000 2,166,000 0
Sales to Cal Poly 36,178 50,000 50,000 0
Other Service Charges 19,580 20,000 20,0000
Total Revenues 2,115,053 2,286,000 2,271,000 (15,000)
Expenditures
Operating Programs
Public Utilities 1,061,356 1,186,000 1,199,346 13,346
General Government 175,000 490,800 490,800 0
Capital Projects 980,526 31,070,000 31,614,220 544,220
Total Expenditures 2,216,882 32,746,800 33,304,366 557,566
Other Sources (Uses)
Debt Financing Proceeds 30,564,000 30,564,000 0
Operating Transfers Out (28,800) _ (28,800) 0
Total Other Sources (Uses) 0 30,535,200 30,535,200 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (101,829) 74,400 (498,166) (572,566)
Working Capital, Beginning of Year 1,056,448 406,500 954,619 548,119
Working Capital, End of Year 954,619 480,900 456,453 (24,447)
C-18
CHANGES IN FUND -ALANCE
PARKING FUND
1988-89 1989-90
-
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 603,774 240,000 350,000 110,000
Fines and Forfeitures 166,075 125,000 150,000 25,000
Service Charges
Parking Meter Collections
Lots 177,128 227,000 227,000 0
Streets 346,657 j72,500 372,500 0
Parking Structure Collections 78,33.5 90,000 119,500 29,500
Long-Term Parking Revenues 62,292 98,000 68,500 (29,500)
Parking In-Lieu Fees 1,000 135,000 35,000 (100,000)
Other Service Charges 3,409 15,000 15,000 0
Total Revenues 1,438,670 1,302,500 1;337,500 35,000
Expenditures
Operating Programs
Transportation 478,577 521,700 524,858 3,158
General Government 28,800 180,200 180,200 0
Capital Projects 684,510 65,000 4,005,048 3,940,048
Debt Service 942,034 928,000 . 928;000 0
Total Expenditures 2,133,921 1,694,900 5,638,106 3,943,206
Other Sources (Uses)
Operating Transfers Out (7,900) (7,900) 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses (695,251) (400,300) (4,308,506) (3,908,206)
Working Capital, Beginning of Year 7,326,894 2,560,200 6,631,643 4,071,443
Working Capital, End of Year:
Reserved for Debt Service 1,003,041 1;027,700 1,003,041 (24,659)
Unreserved 5,628,602 1,132,200 1,320,096 187,896
Total Working Capital 6,631,643 2,159,900 2,323,137 163,237
i
C-19
CHANGES IN FUN' BALANCE
TRANSIT FUND
1988-89 1989-90
Original Revised
Actual Budget Projection Variance
Revenues
Investment and Property Revenues 75,666 8,000 15,000 7,000
Subventions and Grants 239,838 350,000 324,600 (25,400)
Service Charges 149,131 139,900 139,900 0
Total Revenues 464,635 497,900 479,500 (18,400)
Expenditures
Operating Programs
Transportation 381,153 531,500 533,727 2,227
General Government 2,500 49,200 49,200 • 0
Capital Projects 20,885 20,885
Total Expenditures 383,653 580,700 603,812 23,112
Other Sources (uses)
Operating Transfers In 90,000 90,000 0
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 80,982 7,200 (34,312) (41,512)
Working Capital, Beginning of Year 212,358 123,200 293,340 170,140
Working Capital, End of Year. 293,340 130,400 259,028 128,628
C-20
i
CHANGES IN FUND \LANCE
WHALE ROCK COMMISSION
1988-89 1989-90
Original Revised
Actual Budget Projection Variance-
Revenues
Investment and Property Revenues 103,678 76,100 96,000 .19,900
Service Charges
Water Sales
Operating Charges 204,355 258,700 258,760 0
Water Distribution Charges 331,588 284,000 284,000 0
Fishing Program
Fees 1,247 1,000 1,000 0
Member Agency Contributions 25,099 20,200 20,200 0
Other Revenues 489 1,000 11000 0
Total Revenues 665,856 641,000 660,900 19,900
Expenditures
Operating Programs
Public Utilities 497,958 547,900 550,884 2,984
General Government 73,400 86,600 86,600 0
Capital Projects 68,548 24,140 24,140
Total Expenditures 639,906 634,500 661,624 27,124
Other Sources (Uses)
Operating Transfers Out (6,800) (6,800) 0
Revenues and Other Sources Over(under)
Expenditures and Other Uses 25,950 (300) (7,524) (7,224)
Fund Balance, Beginning of Year 1,342,026_ _ 1,159,400 1,367,976 208,576
Fund Balance, End of Year 1,367,976 1,159,100 1,360,452 201,352
C-21
I
Section D
MID-YEAR BUDGET REQUESTS
SUMMARY OF 1989-9C 'ID-YEAR BUDGET REQUE TS
Regular Amount Requested
Positions
Requested 1989-90 1990-91
OPERATING PROGRAMS
Public Safety
Police Patrol Services - Speed Trailer $6,600 $0
Public Utlities
Groundwater Wells -Operation and Maintenance 1 359,900 736,700
General Government
Legal Services- Contract Service Requirements 45,700
Personnel Administration- Classification Studies 15,000
Total Operating Programs 1 427,200 736,700
CAPITAL IMPROVEMENT PLAN PROJECTS
Public Utilities
Groundwater Wells - Screening of Carbon Filtration Tanks 65,000
Leisure, Cultural & Social Services
Mission Plaza Projects 50,000 50,000
General Government
City Hall Asbestos Removal 180,000 143,000
City Hall Office Systems Furniture 40,000 95,000
Total Capital Improvement Plan Projects 335,000 288,000
TOTAL MID-YEAR BUDGET REQUESTS 1 $762,200 $1,024,700
D-1
1989-90 MID-YEAR ADJURTMENT REQUEST
,OPERATING PROC 1MS
PROGRAM: Patrol Services
REQUEST TITLE: Radar Trailer
Request Summary
The Police Department requests $6,600 to purchase a radar trailer to enforce vehicle speed
laws in traffic zones subject to speed violations by educating drivers as to their individual
vehicle speed. The trailer has a self-contained radar unit that measures the velocity of
approaching vehicles and then displays the speed on a screen. The device is designed to
remind motorists of the need to monitor their speed in certain areas. The trailer will be
rotated to various locations as part of the traffic enforcement and education program. The
trailer requires no support other than drop-off and pick-up.
Primary Objectives
To reduce traffic speed in traffic zones subject to speed violations at the least cost to the
City and to build positive relations between the public and the Police Department by using
education as a method of enforcing traffic laws.
Summary of Factors Driving the Request For Change
The City Council requested that the Police Department review the possibility of using
surplus police vehicles to assist in the enforcement of speed laws. These vehicles would be
unoccupied police vehicles_ in designated traffic zones to enforce traffic laws by deceiving
the public as to a police presence. The objective of the program is enforcement of speed
laws with the minimum use of uniformed police personnel and equipment:
After reviewing this request, the Police Department determined that a "speed trailer" is more
efficient, cost effective, and fosters better community relations. The cost of a trailer is
- approximately $6,600. The use of a surplus police vehicle would probably result in less
revenue from its sale at a later date and would be more expensive to store, maintain and
locate versus the cost of a "speed trailer". In addition, although the use of decoys may be
effective in the short term, the long term use of decoys will lose their effectiveness as the.
public becomes aware of this type of deception.
Studies have shown that "speed trailers" are effective in slowing traffic by drawing the
attention of motorists to their speed.
Alternatives
1. Increase the number of police officers in Patrol Services to expand hours and effort in
vehicle speed enforcement. This alternative and the associated costs will be addressed
in the Five Year Plan for the City's Police programs and services.
2. Use surplus police vehicles as decoys to slow traffic in designated traffic zones that are
sensitive or are subject to speed violations. As described above, this alternative is not
recommended.
3. Do not change the present level of enforcement. This alternative is the most cost
effective alternative however it may not appear to be responsive to public request.
4. Purchase a radar trailer at a cost of $6,600 as recommended.
Cost Summary
An adjustment to the Patrol Services program budget for 1989-90 in the amount of $6,600 is
required. No significant recurring program costs are anticipated.
Implementation
On approval of this request, the City . will order a radar trailer in accordance with the
procedures established in the Purchasing Control Manual.
D-2
1989-90 MID-YEAR ADJUSTMENT REQUEST
OPERATING PROGRAMS
PROGRAM: Groundwater Wells (New Program)
REQUEST TITLE: Operations and Maintenance
Request Summary
Implementation of the groundwater program and the development of (6) producing wells will require a
recurring cost estimated at $736,700 per year for operations, maintenance, and one additional Water
Treatment Plant Operator II position. For 1989-90, an adjustment of$359,900 is recommended to account
for a partial year of operations.
Primary Objectives
To supplement the existing surface water supplies by-
e pumping water from the ground into the City's distribution system for domestic consumption.
• insuring the wells, carbon filtration, and chlorination systems are functioning properly and are
providing the City with the water that meets or exceeds all State and Federal guidelines.
• reducing well and treatment system down time when malfunctions occur and increasing system failure
response time.
Summary Of Factors Driving The Request For Change
• The lack of adequate rainfall over the past 4 years has left the City's surface water supplies at critical
levels resulting in the recent move towards supplementing dwindling surface water supplies with
groundwater sources (wells). As a result, Council has made the declaration of a water shortage and
a mandatory water conservation program has been implemented.
• Current City policy to develop groundwater sources to-meet the needs and requirements of the
customers has provided a number of wells currently ready for service or proposed for service in
locations throughout the City of San Luis Obispo.
• Because of the contaminants found in the groundwater basin and of stricter water quality regulations
imposed by the State of California, the amount and frequency of required samples has greatly
increased. In many cases,staff is required to sample on a weekly basis to ensure compliance with State
and Federal water quality requirements.
• All water produced from each of the wells must be properly disinfected. As discussed below, the
primary disinfectant used is sodium hypochlorite, a liquid which requires refilling of the supply tank,
daily in most cases.
• Each of the wells will require periodic maintenance to the 1) well pump and 2) the chlorination
facilities to insure proper operation. The two wells that require carbon filtration to remove
contaminants will require periodic maintenance and filter cleaning as necessary.
Well Development Background-Over the last year and a half, the City has aggressively pursued groundwater
development as a viable option to supplementing its existing surface water supplies. This program has
resulted in a number of test wells being drilled, developed and brought.on line for operations in locations
throughout the City. The possibility of additional manpower, operational and power costs were anticipated
at the start of the project in 1988, but because of the highly uncertain outcome of the project at that time,
exact requirements could not be predicted.
D-3
r-
1989-90 MID-YEAR ADJUSTMENT REQUEST
GROUNDWATER WELLS
Page 2
Up until this time, all of the City's water has been supplied from existing surface water supplies. Because
of a lack of adequate rainfall over the past four (4) years, the surface water supplies have not sufficiently
recharged. As a result:
- groundwater wells for domestic consumption have been developed, and
- a water emergency has been declared, mandating a 20 percent reduction in consumption.
All water supplied for domestic consumption must meet State and Federal water quality standards for levels
of contamination and disinfection. Two of the wells require carbon filtration treatment to remove
Tetrachloroethylene (PCE) and Trichloroethylene (TCE) contamination. To comply with the State of
California's water quality regulations, groundwater entering the distribution system must be properly
disinfected. The City has elected to use sodium hypochlorite as the primary disinfectant (which is a liquid
versus the traditional chlorine gas)for public safety. Many of these wells are located in populated areas and
if chlorine gas were used and an accident occurred, the risk to the City in terms of liability would be great.
As a result, the use of sodium hypochlorite is more manpower intensive and requires closer monitoring by
operational personnel.
Operations Factors
To obtain the water from the ground, the City will incur the following costs:
1.Pumping Charges- Electrical charges for individual well pumps and a system booster pump, which pumps
water from the Edna Saddle Storage Tank to the Terrace Hill Tank on a demand basis, are expected to
average $50,000 monthly. Well pumping is timed as much as feasible to take advantage of off-peak and
part-peak rates. Once the well system is on the telemetry system, to be completed in 1 1/2 years,.
electrical costs can be more accurately managed to achieve the maximum benefit of off-peak use.
U 2.Chemical Treatment(Carbon Filtration and Chlorine)and Laboratory Costs- The Dalidio carbon filtration
unit will need to be changed once this year and annually thereafter, and the Auto Parkway well will need
annual replacement starting next year, at a cost of$20,000 per filter unit change. Lab costs will directly
reflect increased testing requirements with some of the monthly tests costing$1,000 each, along with other
mandatory tests, expenses are expected to average nearly $5,000 monthly.
3.Personnel Expenses- The individual needed to operate and maintain the wells is required to be certified
by the State of California as a Grade Two Treatment Plant Operator, which will cost $33,700 for a full-
time equivalent position.
As.such, the approval of $736,700 is recommended for operational and personnel expenses on an annual
basis. For 1989-90, an adjustment of$359,900 is recommended to account for a partial year of operations.
Workload Factors
Until 1989, the City did not use groundwater as a .water supply. Over the past year, the addition of wells
being brought online has significantly increased workload factors compared with the basic staff resources.
Present water treatment plant staffing requirements are based upon the operation and maintenance of the
City's water treatment and hydro plants.
Each additional well that is put online in the future will add an estimated .90 hours per day. It is anticipated
that by the end of February 1990, three additional wells sites will become functional for a total of nine. As
summarized by the following, the man-hour requirements are estimated to be 8.00 hours per day by the end
of February 1990:
0
D-4
1989-90 MID-YEAR ADJUSTMENT REQUEST
GROUNDWATER WELL_ S
Page 3
�1
Table I Wells Personnel Workload Factors
TASKS FOR WELLS CURRENTLY ON LINE ESTIMATED TIME
1. Driving Time 1.75 Hours
2. Record and bookkeeping (meter, pumping levels, C12 residuals, etc) 1.00 Hours
3. Adding Chlorine Solution 0.75 Hours
4. Required and Preventative Maintenance 2.00 Hours
5. Sample Collection 0.75 Hours
6. Backwashing Carbon Filter Tanks 0.50 Hours
7. Restarts (Power outages) 0.25 Hours
8. Check Edna Tank
a. Chlorination equipment maintenance 0.50 Hours
b. Booster Pump maintenance 0.50 Hours
TOTAL TIME 8.00 Hours_
Alternatives
1.Continue with.Existing Staffing and Budsetarv_Levels - Under this approach, no augmentation in the
water system staffing would be provided'. The impact of the well production, and increase in sampling,
maintenance, and operation will take priority over other sections of the water treatment plant program.
Those areas will then begin to degrade and require additional staff or eliminate them from the program
all together. This approach is not consistent with the new State/Federal requirements which are being
placed upon all utilities, and as such, is not recommended. The operations and personnel costs can only
be avoided by not operating the wells. Due to the need to augment the City's water resources, this is not
recommended.
2.Use of Contract Employee - To operate and maintain wells requires that the individual be certified by the
State of California as a Grade Two Treatment Plant Operator. It is extremely difficult to obtain a
qualified and certified individual on a contract basis. Additionally, the development of the groundwater
basin is viewed as a long-term water resource which will require proper staffing long after the drought
is over. Accordingly, this alternative is not recommended.
3.Existing Program Evaluation (Power and Operations) - Basic staffing and expenditure levels of the Water
Treatment Program have been reviewed and no significant opportunities for staff or expenditure
reductions have been identified which could offset the requested change without impacting existing
service levels.
J
D-5
J
1989-90 MID-YEAR ADJUSTMENT REQUEST
GROUNDWATER WELLS
Page 4
Cost Summary
1989 - 1990 1990 - 1991
Current Proposed Projected
Staffing (Regular) 0 $ 8,400 $ 33,700
Electricity 0 $300,000 $600,000
Chemical 0 $ 4,000 $ 8,000
Carbon Filtration Units 0 $ 20,000 $ 40,000
Maintenance & Laboratory Services 0 $ 27,500 $ 55,000
Net Costs 0 $359,900 $736,700
Implementation
Operations and Power Upon Council approval of this request, the additional funds will be used
immediately. Success of the program can be measured by providing safe, aesthetically pleasing water to the
customers of San Luis Obispo on a continuous basis.
Water Treatment Plant Operator II - Upon Council approval of this request, the addition of a Water
Treatment Plant Operator 11 can be achieved immediately. A competitive recruitment is anticipated, and
as such, staffing of the position can be accomplished after budget approval. Success of the position can be
measured through operational staff response to system operation, reduction in down time hours and response
time to restore service.
D-6
1989-91 MID-YEAR ADJUSTMENT REQUEST
OPERATING PROGR AS
PROGRAM Legal Services
REQUEST TITLE: Contract Service Requirements
Request Summary
The City Attorney's Office requires an additional $45,700 for the contract legal services
incurred during the current fiscal year due to the City Attorney vacancy from March 1989
to November 1989, and due to the unanticipated departure of the Assistant City Attorney in
December 1989, a vacancy not expected to be filled until May 1990.
Primary Objectives
To fund the City Attorney's Office for the contract legal services required in the absence
of City staff attorneys.
Summary of Factors Driving the Request For Change
The current budget for legal services is $19,400. At the time the City Attorney's budget
was prepared and adopted, the Staff did not anticipate that it would require seven months
to replace the City Attorney (Roger Picquet); and, the Staff did not anticipate that the
Assistant City Attorney (Vicki Finucane) would depart in December 1989. With one attor-
ney on the City staff to provide legal services, the City has contracted with private
attorneys to provide the required legal services of the City. The cost of these services from
July 1, 1989 through December 31, 1989 has been $87,100. It should be noted that $40,000
of this cost is attributable to Court .Street negotiations.
In the original budget estimate, staff estimated that - salary savings would be sufficient to
fund for legal services the City might need in the absence of a City Attorney. However,
projected salary savings of $22,000 and the current budget of $19,400 does not offset the
projected annual contract service costs of $87,100. In the absence of an Assistant City
Attorney, the City continues to face the need to contract for legal services on a case by
case basis.
Alternatives
The City Attorney can reduce the level of service provided by his office to a service based
on time available. This alternative may significantly delay the work of the City Council
and Staff and place the City at risk on matters which require immediate attention by an
attorney representing the City.
Cost Summary
Revised
Budget
Projected Legal Service Costs $87,100
Projected Salary Savings. (22,000)
Less Original Budget for Contract Services. (19,400)
Additional Budget Required $45.700
Implementation
These services allow the City Attorney to provide for the legal needs of the City which
were authorized by the City Council and not adequately funded.
D-7
1989-91 MID-YEAR ADJUSTMENT REQUEST
OPERATING PRO( 'AMS
PROGRAM: Personnel Administration
REQUEST TITLE: Classification Studies
C
Request Summary
Augmentation of the department's budget for contract services by $15,000 is recommended to
cover the unanticipated extra cost of hiring outside consultants to perform classification
studies as required by the City Employees' Association Memorandum of Agreement (MOA).
Primary Objectives
To meet the City's obligation to perform General Unit classification study on a timely basis
as provided in the existing MOA with this group.
Summary of Factors Driving the Request. For Change
• The decision to use a consultant to perform the second phase of the unit-wide
classification study for the General employees association was in response to
concerns raised by the association at the conclusion of the first study. We had
originally planned to conduct the rest of the study in-house without the use of
consultants, and budgeted accordingly.
• An unusually high number of employee appeals after the first study signalled a
need for the objectivity and specialized expertise a consultant can bring to such
studies. This should provide for greater employee acceptance, heightened credibility
of .the final outcome of the study, and the timeliness mandated by the MOA.
Related Factors
• When the budget for this project was established, the assumption was made that only
the first study would be performed by an outside consultant. The first study
consisted of thirty one employees in ten job classifications. Of the 31 employees
involved in the study over one-third appealed. The consultant, Applied Research
Consultants, Inc., found this to be an unusually high number of appeals, which
necessitated their increase in fees to cover the increase in work scope for the second
phase.
• The second study consists of approximately 44 employees in 21 job classifications.
The larger size in addition to the many appeals experience has taught us to expect
services to increase the cost of the study and the time needed to complete the
project.
Alternatives
1. Fully fund Mid-year budget adjustment request.
2. Partially fund the requested increase. If the request were granted at less than the
$15,000 level, the impacts listed below would still exist, although partially mitigated.
3. Deny the request for additional funds. This would force cutbacks in the Department's
use of contract services, specifically in the areas of employment law, negotiations and
grievance hearings.
C�
D-8
The Personnel Departs" �t has traditionally used a public- --mployment law firm on a
regular basis in concert-with the City Attorney's Office u.`_'.Iandle grievances, disciplin-
ary actions, MOA interpretations, etc. It is anticipated that this practice would increase
since the recently revised Employer_Employee Resolution mandates the use of Hearing
Officers for certain Public Safety employee 'actions. There are significant costs
associated with this process.
Several issues have surfaced recently where the use of our negotiations consultant has
been successful in averting employee grievances and the attendant costs of processing
them.
Cut backs in the department's budget resulting from the use of funds for the unbudgeted
classification study would severely restrict our ability to use other contract services.
Other departmental activities impacted by cutbacks would include assessment centers
which we use for the selection of management, mid-management, and profes-
sional/technical positions, and pre-employment physicals. We would need to limit our
spending for this activity by discontinuing these, physicals for sedentary classifications
and/or temporary positions. This has the potential of increasing City exposure to
work-related injuries.
Cost Summary
1989-90 1990-91
Additional Costs
Contract Services $15,000 0
Implementation
The second phase of the classification study is scheduled for completion on July 1, 1990.
i
D-9
1989-91 MID-YEAR ADJUSTMENT REQUEST
CAPITAL IMPROVEMENT PLAN
PROGRAM: Groundwater Wells
REQUEST TITLE: Screening of Carbon Filtration Tanks
Project Description
To screen from public view the carbon filtration tanks at the Auto Parkway location with
landscaping materials.
Project Objectives
To reduce the negative visual impact of these tanks.
Existing Situation
The City has developed six wells, two of which require treatment to remove contaminants
prior to domestic consumption. The treatment technology which was recommended, approved
purchased and installed was Carbon filtration. As identified at the time that this technol-
ogy was recommended to the Council; the treatment units are 10 feet in diameter and 20
feet tall. Currently, the units are not, screened and are in full public view.
Most of the estimated cost is related to the berming, block wall, and landscaping around the
well. Since the ARC recommendation is only to paint the filtration tanks, costs related to
the Dalidio Well can be supported from the existing operating budget. It should be noted
that staff is currently reviewing other screening options with the businesses in proximity to
both of these sites and will return to Council at a later time with specific recommendations.
Decisions about the .appropriate timing for landscaping around the Auto Park Well can be
/ determined at that time.
Goal and Policy Links
Compliance with Architectural Review Guidelines and City Council direction.
Schedule and Project Costs
Prior Project
Budaet 89-90- 90-91 91-92 92-93- Total
Phasing:
Design 0 15,000 0 0 0 15,000
Construction. 0 50.000 0 0 0 50,000
Total 0 65,000 0 0 0 65,000
Recommended. Funding Source: Water Fund
Project Effect on the Operating Budget .
During design and construction, 30 hours of staff time (10 hours Parks, 20 hours Utilities)
are anticipated. for project management and inspection. After construction, it is estimated
that $1,000 annually will be required for site maintenance (contract services).
U
D-10
1989-90 MID-YEAR ADJUSTMENT REQUEST
CAPITAL IMPROVEMENT PLAN
PROGRAM: Mission Plaza
REQUEST TITLE: Mission Plaza Projects
Project Description
To provide annual funding for future Mission Plaza improvements.
Project Objectives
To ensure that a minimum level of commitment is made in providing funding for possible future
Mission Plazaa improvements as they evolve, including possible consultant assistance.
Existing Situation
The current balance for undefined future Mission Plaza projects is $37,000, after recent
expenditures for the plaza expansion program and other improvements. Until a master plan is
approved outlining specific projects to be accomplished, funding at a level of $50,000 annually over
the next four years is recommended at this time. As plaza extension and improvement occur over
time, funds need to be available to take advantage of unique opportunities for acquisition or
development. A master plan for Mission Plaza was never adopted, although an EIR was prepared
for Mission Plaza expansion.
Goal and Policy Links
Resolution 6303 (1987 Series) defining Mission Plaza funding policies; Park and Recreation and
Open Space/Conservation Elements of the General. Plan (currently under revision); Goals for
Downtown (October, 1979); Final EIR for Mission Plaza Expansion (January 1980).
Project Work Completed
Schematic design plans for Mission Plaza Expansion were completed in 1979. Improvements to
the Higuera side of Mission Plaza expansion area were completed in 1988. Development
alternatives are currently being prepared for Little Theater use of city-owned property at the corner
of Nipomo and Monterey.
Schedule and Project Costs
At this time, no specific project phasing (study, design, acquisition or construction) has been
developed. It is recommended that $50,000 be designated annually for Mission Plaza improvements,
which could be used for any type of expenditure on a case-by-case basis as approved by the
Council. For 1989-91, the Capital Outlay Fund is the recommended funding source.
Project Effect on the Operating Budget
Once a project has been defined or consultant services are required, Community Development staff
time may be significant depending upon the complexity and scope of the project.
CIPPLAZA.WP J
D-1.1
1989-91 MID-YEAR ADJUENT REQUEST
CAPITAL IMPROVEIINT PLAN
PROGRAM Buildings
REQUEST TITLE: City Hall Asbestos Removal
Project Description
Remove and dispose of potentially hazardous asbestos contained in the sprayed-on acoustical
ceilings throughout the upstairs at City Hall; replace the existing sprayed-on ceilings with
either glue-on tile ceilings or suspended T-bar ceilings (whichever is more appropriate);
extend and replace electrical and mechanical connections; repair paint and wall coverings.
Project Objectives
Protect the health of employees and visitors at City Hall; make work areas quieter; improve
the appearance of the upstairs.
Existing Situation
In September 1989 a section of sprayed-on acoustical ceiling containing hazardous asbestos
separated from its drywall backing and fell intothe main stairwell at City Hall. Fortu-
nately, this accident occurred over a weekend and did not. expose people to hazardous
conditions. Cleaning up the fallen material and removing other potentially hazardous
material nearby required a specialty contractor working for a week.
After consulting with representatives from the Environmental Protection Agency and asbes-
tos abatement consultants, staff determined that all potentially hazardous asbestos should be
removed and disposed of as soon as practical to avoid a recurrence of the September 1989
accident. To accomplish this objective staff planned the work to be completed in roughly
the following sequence:
1. administration/city clerk area in conjunction with remodeling
2. administration/personnel area in conjunction with remodeling
3. finance area in conjunction with remodeling
4. city attorney/city council/mailroom
5. computer room/water conservation area/breakroom
6. hallways/restrooms
7. council chamber
Goal and Policy Links
Adopted buildings program goals(page D-93 of the 1989-91 Financial Plan): attractive
'facilities, productive work environments, safe and energy-efficient buildings, and a positive
image for the City.
Project Work Completed
Along with the stairwell cleanup, the administration/city clerk and administration/personnel
areas have been completed. The finance area is scheduled for February/March 1990.
Schedule and Project Costs
Prior Project
Budget 89-90 90-91 91-92 92-93 Total
Phasing: Design (by staff)
Construction 0 180.000 143.000 0 0 323,000
Total 0 180,000 143,000 0 - 0 323,000
Recommended Funding Source: Capital Outlay Fund
A detailed summary of project phasing and costs is attached.
Project Effect on the Operating Budget
This project will require about 500 hours of staff time for design and construction management.
D-12
. PROJECT COSTS - CITY HATS: ASBESTOS REMOVAL
STAIRWELL
Asbestos Removal $8, 550
Carpeting $2, 100 $10, 650 (actual and
ADMINISTRATION/CITY CLERK
-------- estimated cost)
Asbestos Removal $28,400
Ceiling/Wall Installation $101049
Electrical Work $6, 199
Painting/Wall Covering $6,727
Miscellaneous Work $1,583 $52, 958 (actual cost)
ADMINISTRATION/PERSONNEL
Asbestos Removal $6,900
Ceiling Installation $6, 081
Electrical Work $11,297
Painting/Wall Covering $2,239
Miscellaneous Work $420 $26,937 (actual cost)
FINANCE
Asbestos Removal $29, 000
Ceiling/Wall Installation $10, 000
Electrical Work $7, 000
Painting $2,000
Miscellaneous Work $2,000 $50, 000 (estimated cost)
CITY ATTORNEY/COUNCIL/MAILROOM
Asbestos Removal $22, 000
Ceiling Installation $7, 000
Electrical Work $7, 000
Painting $2 , 000
Miscellaneous Work $2 , 000 $40,000 (estimated cost)
COMPUTER/WATER CONSERVATION/BREAKROOM
Asbestos Removal $16, 000
Ceiling Installation $5,000
Electrical. Work $5,000
Painting $1, 000
Miscellaneous Work $11000 $28, 000 (estimated cost)
HALLWAYS/RESTROOMS °
Asbestos Removal $52 ,000
Ceiling Installation $9,000
Painting $3 ,000
Miscellaneous Work $3, 000 $67, 000 (estimated cost)
COUNCIL CHAMBER
Asbestos Removal $35, 000
Ceiling Installation $7, 000
Painting $3,000
Miscellaneous Work $3 , 000 $48, 000
(estimated cost)
--------- ---------
TOTAL $323,545
D-13
1989-90 MID-YEAR ADJti,, MENT REQUEST
CAPITAL IMPROVEMENT PLAN
PROGRAM: Buildings
CREQUEST TITLE: City Hall Office Systems Furniture
Project Description
To install office systems furniture (OSF) throughout remaining areas of City Hall: thirty (30) work
stations summarized as follows: Community Development (2l); City Attorney (2); and Finance (7).
Project Objectives
To improve the productivity and appearance of the existing City Hall work environment.
Existing Situation
OSF is currently in use at 955 Morro (30 work stations) and selected areas of City Hall (38 work
stations total): Administration and Council (11); City Clerk (6); City Attorney (1); Personnel (5);
Finance (10); and Community Development (6). The remaining work stations at City Hall include a
combination of enclosed offices, free-standing partitions, and. various models and makes of office
furnishings. Existing furnishings range in condition from good to poor, with varying levels of
appearance and functionality. Most of the proposed work stations are located in the basement area
of City Hall, which was identified in the Facilities Master Plan as unsuitable for office use in its
current configuration. Funding for the replacement of carpeting in the basement area has been
previously approved,and the installation of OSF would be made in conjunction with this replacement.
Remodeling of this type can be very disruptive to the work environment with corresponding impacts
on productivity and the- efficient delivery of services to the public. However, the telephone and
computer access as well as other minor improvements recently made at the old library in conjunction
with the Finance remodel provide an excellent opportunity to make these kinds of improvements at
this time. Based on the Finance Department experience, temporary relocations to the old library as
selected areas of City Hall are upgraded is an effective solution to minimizing the disruption of
services to the public and organization.
Goal and Policy Links
1. Building Program Goals of productive and safe work environments;a positive image for the City;
and attractive facilities (page D-93 of the 1989-91 Financial Plan).
2. Facility Master Plan Overview and Options.
3. Impact on future facility needs: investment in OSF at this time does not conflict with any future
building programs. Due to its flexibility in installation and reconfiguration, any OSF purchased
at this time will be available for use at any new or expanded City facilities. As such, investing
in OSP at this time will enable the City to benefit from a more productive and attractive work
environment earlier than otherwise possible if this acquisition is deferred pending the completion
of an expanded City Hall.
Project Work Completed
Study has been completed for this phase of the project. As noted above, OSF has been installed in
approximately 70 work stations City-wide.
Schedule and Project Costs
Prior
Phasing Budget(s) 89-90 90-91
Acquisition 171,000 40,000 95,000
Recommended Funding Source: Capital Outlay Fund.
Project Effect on the Operating Budget
The Operating Budget will not be directly affected by this project. However, productivity will be
negatively impacted during installation; and approximately 75 staff hours are anticipated for project
management.
D-14