HomeMy WebLinkAboutSection G - Setting The StageSection G
Background Materials
SETTING THE STAGE FOR 2019-21
FROM: Derek Johnson, City Manager,
Brigitte Elke, Finance Director
Prepared By: Alex Ferreira, Budget Manager
SUBJECT: SETTING THE STAGE: STATUS UPDATE FOR THE 2019-21 GOAL-
SETTING AND FINANCIAL PLAN PROCESS
RECOMMENDATION
1. Receive and discuss the following background information in preparation for the 2019-21
goal-setting and Financial Plan process:
a. Status of 2017-19 Major City Goals and Other Important Objectives
b. Fiscal Health Response Plan
c. General Plan Update
d. Strategic Scan; and
2. Confirm the date for the Goal Setting workshop on Thursday, February 7, 2019 at 5:00 pm.
REPORT IN BRIEF
The City of San Luis Obispo utilizes a two-year financial planning process to create its budgets.
This process includes extensive public outreach to assist the City Council in establishing Major
City Goals. The benefits of this process are two-fold, it ensures that resources are provided in the
budget to accomplish the community’s highest priority, most important objectives, and it is a
method to help create a mutual understanding among residents, decision makers, and City staff
about what can be achieved by working together.
To provide the setting for the goal setting process, this report includes an update our current
Major City Goals and Other Important Objectives, the status of the Fiscal Health Response Plan
adopted by Council April 17th, 2018, an update on the General Plan, and an overview of strategic
indicators.
Significant progress has been achieved regarding all Major City Goals. The Housing Major City
Goal is 73% complete, Multi-Modal Transportation is 70% complete, Climate Action is 70%
complete, Fiscal Sustainability & Responsibility is now 65% complete, and the Downtown
Vitality Other Important Objective is 75% complete.
This first year of the Fiscal Health Response Plan (FHRP) has been implemented. A total of $1.1
million in operating reductions and $0.4 million in revenue through doing business differently
have been realized. Employee concessions targeted at approximately $1.7 million over the three
years of the plan are also in process.
This report also highlights the progress made on the General Plan. Of the 409 individual
implementation planning programs in the General Plan, 93% or 379 programs are completed or
have been integrated into the City’s ongoing operations. This is a seven percent increase since
the last update provided as part of the 2017-19 Financial Plan. Given the ambitious nature of the
General Plan and its twenty-year time horizon, staff believes that this represents significant
progress toward achieving the goals within the plan.
Lastly, the report includes a scan of strategic indicator. The scan was developed by two Cal Poly
interns in City Administration Department and provides an in-depth overview on important
statistical information pertaining to key social, economic, and environmental influences.
DISCUSSION
The fundamental purpose of the City’s budget process is to allocate financial resources to
support City services and capital projects to accomplish adopted goals over a two-year period.
This process is informed by the City’s current service levels and adopted long-term plans and
policies and assists the development of the two-year Financial Plan.
As an integral part of the Financial Plan development and its goal setting process, the Council
will hold a Community Forum on January 23, 2019, followed by the Council Goal-Setting
workshop on February 7, 2019, to engage the public in defining the desired work efforts and to
provide input as to the priorities for the community. The community can further contribute
through an online survey posted on the City’s website at www.slocity.org/opencityhall.
In order to provide background information and context for consideration during the goal setting
process, Council and the public will receive a series of reports which include updates on the
status of adopted plans, Major City Goals, capital projects as well as the region’s economic
outlook and the City’s financial policies. The December 4th City Council meeting will
concentrate on the City’s budget policies, the Capital Improvement Plan, and will provide an
economic outlook highlighting the trends for the upcoming five-year period. This report lays the
foundation for that discussion by providing a status update on the current Major City Goals and
Other Important Objective, an update to the adopted FHRP, and a status report on General Plan
implementation programs.
The General and Enterprise Funds’ five-year fiscal forecast will be presented to the Council on
February 5, 2019 alongside the 2018-19 Mid-Year Report and will be based on audited 2017-18
financial results. This will be the final piece in the series of reports as the five-year forecast is an
essential part in the development of a reliable and accurate long-term outlook and sustainable
financial plan to be presented to the Council on June 4, 2019.
Status of 2017-19 Major City Goals and Other Important Objective
Housing: This goal aims to facilitate increased production of all housing types designed to be
economically accessible to the area workforce and low and very low-income residents, through
increased density and proximity to transportation corridors in alignment with the City’s Climate
Action Plan. This goal is 73% complete.
Multi-Modal Transportation: This goal prioritizes the implementation of the Bicycle Master
Plan, pedestrian safety, and the Short-Range Transit Plan. This goal is 70% complete.
Climate Action: This goal focuses work efforts to update the City’s Climate Action Plan,
assesses requirements to achieve a “net-zero carbon City” target, and implements cost-effective
measures, including implementation of a Sustainability Coordinator and the formation of a Green
Team. This goal is 70% complete.
Fiscal Sustainability and Responsibility: This goal implements the City’s Fiscal Responsibility
Philosophy with a focus on economic development and responsiveness, reduction of unfunded
liabilities, and infrastructure financing. This goal is 65% complete.
Other Important Objective:
Downtown Vitality: This goal focuses work efforts to continue to improve safety, infrastructure
investment, and maintenance in the Downtown and support Downtown Association’s proposal to
consider a Downtown improvement district. This objective is 75% complete.
Attachment A - Status of the City’s Major City Goals and Other Important Objectives for 2017-
19 - further details progress on all efforts and work programs related to the individual goals as of
October 1, 2018.
Fiscal Health Response Plan Status
With the development of the 2017-19 Financial Plan, Council adopted the Fiscal Sustainability
and Responsibility Major City Goal with a work program to address long-term fiscal health. At
its December 12, 2017 meeting, Council received a report titled “Budget Foundation: Fiscal
Health Response Plan” which articulated the need to reduce ongoing expenditures by $8.9
million in all funds by 2020-21 ($7.5 million in General Fund and $1.4 million from the
Enterprise funds).
The reduction is necessary to address the long-term financial impacts1 related to pension costs
due to significant policy changes made by the California Public Employees’ Retirement System
(CalPERS) affecting the unfunded liabilities of all PERS member organizations. On April 17,
2018, the Council adopted the City’s FHRP (Attachment B) to establish a roadmap to long-term
fiscal health and sustainability that will be accomplished over a period of three years from 2018-
19 through 2020-21.
With the adoption of the General Fund portion of the 2018-19 Supplemental Budget, City staff
identified a total of $1.1 million in operating reductions and $0.4 million in revenue through
doing business differently. Those actions reduce the General Fund obligation for years two and
three of the Plan to $6 million as outlined in the table below. Considering revenue estimates from
a cannabis tax amounting to $3 million, doing business differently, and negotiated employee
concessions targeted at $1.7 million over the three years of the plan, $1,356,000 is still needed
from operating expenditure savings. Of that amount, $902,000 was identified by departments as
future year reductions, leaving $454,000 still to be identified as part of the 2019-21 Financial
Plan development effort. Those reductions, along with the previously identified $902,000, will
be presented to Council as part of strategic budget direction on April 16, 2019.
1 Assuming all actuarial assumptions remain relatively constant.
Identified: $0.4M
4 of 5 Negotiations Complete
Identified: $1.1M
Total: $7.5M
General Fund – FHRP Status
Year 1 Year 2 Year 3
Plan Plan Plan Total
FHRP Est. Reduction/New Revenue 1,500 2,000 4,000 7,500
Revenue
New Business License 150 150
Code Enforcement 50 50
New Ways of Doing Business 20 20
TOT (Air BnB & homestays) 50 50
Cannabis Tax 100 1,200 1,500 2,800
Total Revenue 370 1,200 1,500 3,070
Expenditures
Concessions 1,700 1,700
Bond Refinancing 83 271 354
CalPers Prepayment 323 323
Department Operating Reductions 696 238 664 1,599
Total Expenditure 1,102 509 2,364 3,976
Total 1,472 1,709 3,864 7,046
FHRP Plan 1,500 2,000 4,000 7,500
Budgeted 1,472 1,709 3,864 7,046
Savings Still needed (oversavings) 28 291 136 454
The City’s four Enterprise funds will be responsible for their individual portion of the FHRP,
reducing expenses by $1.4 million over the three years of the plan. All four funds have also
developed a three-year approach which will be presented with their respective 2019-21 Financial
Plan presentations.
Status of General Plan Implementation Programs
Why Report on the Status of General Plan Programs?
The City’s General Plan is composed of a “building block” hierarchy of goals, objectives,
policies and programs. Goals and objectives are direction-setters that describe desirable
conditions and preferred outcomes as they are applied to specific situations. Policies are typically
more specific statements that guide decision-making while the defined programs are actions that
implement goals, objectives and policies. As such, monitoring the City’s progress in
implementing General Plan programs is an excellent way of monitoring its progress in achieving
General Plan goals and objectives which is the focus of the plan document.
Attachment C provides a summary of the status of all General Plan Implementation programs by
element as well as key “area” plans including: The Downtown Concept plan, Mid-Higuera, and
the Railroad Historic District. Another part of the report addresses action items and work efforts
related to the Airport and Margarita Areas, and the Orcutt Area Specific Plan. New in this year’s
update is the integration of the City’s Climate Action Plan and its related efforts.
As discussed in greater detail in the report, of the 409 individual implementation planning
programs in the General Plan, 93% or 379 programs are completed or have been integrated into
the City’s ongoing operations. This is a four percent increase since the last update provided as
Status of General Plan Implementation
Programs
Complete or Ongoing 93%
High Difficulty 1%
Medium Difficulty 4%
Low Difficulty 2%
part of the 2017-19 Financial Plan. Given the ambitious nature of the General Plan and its
twenty-year time horizon, staff believes that this represents significant progress toward achieving
the goals within the plan.
Programs not yet completed (7% of the total) are classified in the following categories:
1. 2% or 8 projects as relatively easy to achieve from a resource perspective
2. 4% or 16 projects as moderately difficult to achieve due to the significant resources needed
to staff (up to 500 hours) or fund (up to $25,000) the work and implementation through
completion.
3. 1% or 6 projects as difficult to achieve due to the major resources needed to staff (more than
500 hours) or fund (more than $25,000) the work and implementation through completion.
Climate Action Plan
The 2017-19 Climate Action Major City goal focused on building capacity and updating the
Climate Action Plan (CAP). The City expects to adopt the updated CAP in Fall 2019. The
updated Climate Action Plan will set a trajectory to carbon neutrality by 2035 and will include
wide ranging implementation strategies. In FY 2019, staff expects to begin implementing the
CAP and planning for community resilience in adapting to the impacts of climate change.
Strategic Scan
This is a new addition to budget process and was developed by two Cal Poly interns in City
Administration Department with consultation from the Leadership team. The scan provides an
in-depth overview of important statistical information pertaining to social, economic, and
environmental factors. It addresses issues pertinent to the delivery of City services and provides
important context for decision making through the budget process. It should be noted that the
scan is not exhaustive of all data important to the City but is intended to be illustrative of
strategic indicators for consideration and discussion. The complete presentation is provided as
Attachment D. to this report.
Goal Setting Workshop – Thursday, February 7, 2019
Traditionally, the Council’s goals setting workshop was an all-day Saturday session in the City-
County library. On October 2, 2018, the Council reviewed the Financial Plan schedule and
directed staff to consider moving this session to a weekday evening special meeting. Staff is
recommending moving the session from February 9, to February 7, 2019, at 5:00 pm.
ENTERPRISE FUNDS
WATER FUND
Status update:
Water Rate Structure and Rate Implementation - The water rate structure and rates adopted
by City Council on June 19, 2018 were implemented. Implementation of this change was a
complicated undertaking for the Utility Billing team as it worked with the City’s software
provider to ensure the new billing system accurately calculated bills and explained changes to
customers.
Water Treatment Plant Energy Efficiency Project - Phase 3 of the Water Plant Energy
Efficiency Project is making significant progress. This project has the potential to significantly
reduce energy use by addressing aged and inefficient equipment and construct a hydroelectric
generation and photovoltaic systems. An investment grade audit (IGA) to identify rebates,
incentives, energy saving projects, project costs and payback, is currently underway. The IGA is
expected to be complete April 2019.
Pipeline Replacement - Currently underway is a $3 million pipeline replacement project that
replaces approximately 5,000 feet of aged waterlines on Pacific, Boysen, Chorro, and Sierra
streets. Additional waterline replacements are planned for Casa, Stenner, Murray and the
intersections of Chorro/Meinecke and Chorro/Murray.
Groundwater Sustainability Agency - The City worked with the County of San Luis Obispo
and other stakeholders to form a Groundwater Sustainability Agency (GSA). The GSA is
working together to develop a Groundwater Sustainability Plan (GSP)for the San Luis Obispo
Valley groundwater basin. The goal of the GSP is the long-term health of the local groundwater
resources.
What lies ahead
The Water Fund’s portion of the Fiscal Health Response Plan is $540,000 over the next three
years. Water revenues received from rates and/or fees for service and increases to rates and fees
will not be used to close the budget gap. For fiscal year 2018-19, increased revenues, attributable
to an increase in consumption, and decreased expenses will provide $200,000 toward meeting
the target. Additionally, Council adopted the required funding to install new water meters
capable of accurately recording flow at the low-flow rates typically associated with high -
efficiency plumbing fixtures. An exact assessment of revenues attributable to meter replacement
and associated increased accuracy will be determined at the end of FY19.
SEWER FUND
Status update
Water Resource Recovery Facility (WRRF) Upgrade project - Phase 3 of the WRRF upgrade
is currently underway. The main driver for the project is to meet regulatory discharge
requirements, address aged equipment, and provide a community asset. The WRRF Project has
achieved the 95% design project milestone. Additionally, the City will receive a State Revolving
Fund (SRF) loan in an amount up to $140 million, at an interest rate that is half the State’s
General Obligation Bond interest rate and was recently approved to receive $4 million of
principal forgiveness from Green Project Reserve funding.
Margarita Lift Station - The Margarita Lift station was originally installed in 1971 and needs
replacement. Construction is currently underway and 60% complete. This project is expected to
be completed by December 2018.
Sewer Lining Project - This project will rehabilitate 4,350 of existing sewer pipe in five
different locations proximate to Chorro and Benton streets. The project is currently out to bid.
Construction is scheduled to begin in the first quarter and expected to be completed in the second
quarter of 2019.
What lies ahead
The Sewer Fund’s portion of the Fiscal Health Response Plan is $542,000 over the next three
years. For fiscal year 2018-19, increased revenues and decreased expenses will provide $100,000
toward meeting the target. $80,000 of the operating expense reduction is attributable to energy
and process control changes. $20,000 in increased revenues is attributable to more accurate fee
collection due to the water meter change out program. Assessment of revenues attributable to
meter accuracy will be determined at the end of FY19.
PARKING FUND
Status update:
Implementation of License Plate Recognition (LPR) - This software is primarily used to assist
parking enforcement in monitoring time limits in the downtown and other time limited parking
areas throughout the City. The LPR reduces the time required to “chalk” vehicles, and
documents the vehicle plate, location, and time for citation adjudication and contesting.
Therefore, existing staff increase their efficiency and range of coverage throughout the City.
The LPR system can also help with occupancy data collection to update the City’s KH Park +
modeling software. The LPR and KH Park systems are both intended to provide vastly improved
parking utilization data.
Structural Assessment and Maintenance Report for Parking Structures – This project
completed a detailed structural analysis of each of the existing parking structures and identified
and prioritized maintenance and repairs necessary. This was approved by Council in the 17-19
Budget and enables the Parking Fund to prioritize the capital investments which will extend the
useful life of these major assets.
Installation of the Parking Access and Revenue Control System (PARCS) – This is a
complete replacement of the equipment and software at each of the public parking structures.
The prior system was 20+ years old and required attendants to accept either cash or credit
payments. Outside of attendants’ hours2, the gates remained raised, resulting in a significant loss
of revenue and cost disparity between daytime and nighttime users. The new system is fully
automated and will allow customers to enter and exit 24/7. In addition, multiple payment
options, including pay-on-foot machines (POF) at each location, will significantly facilitate the
exiting process. The attendants can expand their role to assist customers by also patrolling the
structures to provide customer assistance and serve as ambassadors for the City. The new system
will also provide accurate real-time occupancy data which can be viewed on the City website.
The goal is to eventually provide a mobile platform to provide drivers with parking information
before reaching the structures, thus reducing the need to drive around looking for a parking
space.
What lies ahead
Fiscal Health Response Plan - The Parking Funds portion of the Fiscal Health Response Plan is
$175,000 over the next three years. For fiscal year 2018-19, increased revenues and decreased
expenses will meet the target. $10,000 of the operating expense reduction is obtainable in the
landscaping budget, and over $165,000 in increased revenues is attributable to parking rate
increases approved by Council (July 2017) that were effective January 1, 2018.
Palm Nipomo Structure – The process of getting the final design contract is moving forward
but will not likely be completed for at least another year.
EV Charging Stations – Parking Services is continuing to work with PG&E to complete the
installation of the EV charging stations in both the Marsh Street and 919 Palm Parking
Structures. This will dramatically increase the capacity of charging stations available to both
public and the City’s fleet vehicles.
TRANSIT FUND
Status update:
Phase 1 Implementation of SRTP - City Council adopted the 2017-22 Short Range Transit Plan
in August of 2016. Phase 1 and major components of the recommended changes were enacted in
June 2017. As a direct result, many of the goals and assumptions of the Plan have come to
fruition. These include improved on-time performance/reliability ( 97% as of last analysis), new
service to the regional airport, eleven new bus stops, expanded service hours on weekdays and
2 8:00 a.m.-10:00 p.m.
weekends, reduction in complaints and system inquiries because of improved ease-of-use (e.g.
“where is the bus” or “how can I use the bus”), growth in use with middle and high school
students and reduced costs (diesel fuel use reduced by 13.5%, or 13,690 gallons) Further, these
changes will improve the transit systems scalability as service needs continue to change in the
future.
Awards & Recognitions - The major undertakings of overhauling the aging transit system has
been acknowledged, so far, with three industry awards. The American Public Works
Association’s Central Coast Chapter has awarded SLO Transit its 2017 Project of the Year
Award. Metro Magazine has awarded SLO Transit its 2018 Innovation Award. And the
California Association for Coordinated Transportation (CalACT) has awarded SLO Transit its
2018 Outstanding Transportation Agency Award.
What lies ahead
Fiscal Health Response Plan - The Transit Funds portion of the Fiscal Health Response Plan is
$42,500 over the next three years. For fiscal year 2018-19, increased revenues and decreased
expenses (e.g. fuel) will help ensure that the Transit fund can meet the target without impacts to
the services.
Service & Fleet Expansion - SLO Transit experienced an anticipated and temporary reduction
in ridership during FY 2017/18, directly tied to fare increase and service changes. Early figures
in FY 2018/19 shows an increase in ridership both among university students and the general
population. While ridership increases are desirable, SLO Transit will need to identify and
secure funding sources/strategies to expand service and the fleet in order to meet increasing
service demands.
Zero Emission Vehicles - Adding to the challenge of needed fleet expansion is the need to
procure zero emission vehicles, currently at almost the double the initial cost of a diesel fuel
vehicle. Further, the program will need to modify its current transit operations & maintenance
facility in order to accommodate zero emission vehicle charging.
Stake Holder Funding - Funding for public transit services, while having seen some
improvements is still largely driven by outside stake-holders and factors (e.g. Federal, State
Government, CalPoly University, SLOCOG and RTA). The Transit Enterprise Fund will need to
continually work with these partners to help ensure adequate financial support.
CONCURRRENCES
The City’s internal Financial Plan Steering Committee concur with the recommendations
included in this report.
FISCAL IMPACT
There is no direct fiscal impact as a result of reviewing the status update accompanying this
Council Agenda Report. This report aims at providing context for the upcoming goals setting
process for the 2019-21 Financial Plan.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under the CEQA guidelines Sec. 15060
Attachments:
a - MCG and OIO Update
b - Fiscal Health Response Plan
c - Status of General Plan Implementation Programs
d-Strategic Scan 2018
2019-21 Financial Plan
1
Setting the Stage
for 2019-21 Financial Plan
11/13/18
1
Background Materials for
Council Goal-Setting and the Financial Planning Process
Recommendation
Review background information in preparation
of the 2019-21 Goal Setting Financial Process:
1. Status of 2017-19 Goals & Objectives
2. Status of the General Plan Implementation
3. Fiscal Health Response Plan Update
4. Strategic Scan
Confirm the date for the Goal Setting workshop:
February 7th, 2019
2
Setting the Stage
1st Step toward the development of the two-
year 2019-21 Financial Plan
Background Information for Goal-Setting
Process:
Status of where we are today
What lies ahead
3 4
1 2
3 4
2019-21 Financial Plan
2
Accomplishments
and Status Update
5
Major City
Goals
• Housing
• Multi-Modal
Transportation
• Climate Action
• Fiscal
Sustainability &
Responsibility
Other Important
Objective
• Downtown
Vitality
2017-19 Major City Goals and
Important Objectives
6
• 8 Affordable Agreements in process
• Affordable Housing Fund has $1.5 million in funding
• Updates to the Zoning Regulations and Development Impact
Fee program include incentives to encourage additional
housing, particularly development of smaller units.
Housing
65% Complete
7
•Prado Road Interchange & Prado Creek Bridge Widening
• Funding Secured & Final Stages of ROW Acquisition
• CalTrans Project Study Report Approved & Env. Underway
• Construction Scheduled for 2021
•Railroad Safety Trail
• Funding Secured & Final Stages of ROW Acquisition
• Final Construction Plans & Permitting Under UP Review
• Construction Scheduled for 2020
•Anholm Bikeway Plan
• Bikeway Plan Adopted & Phase 1 Funding Secured
• Phase 1 Design Underway Construction Scheduled for 2019
•Other Infrastructure In Progress Including New Development
• Over 5 Miles of Protected Bikeways In Design
• 5 Roundabouts & 3 Protected Bicycle Intersections In Design
Multimodal Transportation – 70% Complete
8
5 6
7 8
2019-21 Financial Plan
3
• Hired a Sustainability Manager, convened a Green Team, and
support to the SLO Climate Coalition Task Force
• Climate Action Plan to be updated by Fall 2019 to include a
pathway to carbon neutral by 2035 target.
• Agency improvements including energy efficiency retrofits,
solar projects, and electric vehicle chargers.
• Community Choice Energy service in 2020
• Positioned to transition to Climate Action Plan implementation
and community resilience in 2019
Climate Action
70% Complete
9
• $1.5M of additional revenue, operating reductions, and new
ways of doing business has been identified and budgeted as
part of Year 1 of the FHRP.
• 4 of 5 MOAs have been negotiated for total savings of $996K
by year 2020-21
• In September, Governor Brown signed SB 1090 which
approved $85 million in mitigation funding to address the
Diablo Canyon closure including $1.82 million for economic
development efforts for the City.
Fiscal Sustainability & Responsibility
65% Complete
10
Other Important
Objectives Highlights
• Began implementation of portions of the Mission Plaza Concept
Plan in summer of 2018 with the restroom replacement project.
• When available, the Community Action Team and Bicycle Team
continue to maintain public safety by focusing efforts in
addressing chronic offenders downtown.
• The Police Department coordinated with the County of San Luis
Obispo to expand mental Health Services.
• Police, Public Works, and Parks & Recreation are collaborating
to address adverse impacts downtown.
Downtown Vitality
75% Complete
11
Status of General Plan
Implementation Programs Update
12
9 10
11 12
2019-21 Financial Plan
4
Purpose
The Status of General Plan Implementation Programs Update
summarizes:
• The status of all General Plan Implementation Programs and “key”
area plans.
o Downtown Area
o Mid-Higuera Area
o Railroad District Area
• The status of action items and efforts in the Specific Plan Areas.
o Airport Area
o Margarita Area
o Orcutt Area
o Avila Ranch
o San Luis Ranch
13
Completed Implementation
Programs
General Plan Implementation Programs:
• 409 individual implementation programs in the General Plan
• 380 or 93% of them are complete or have been integrated into the
City’s ongoing operations
• 4% increase of implemented programs since the last Financial Plan
status update
14
Incomplete
Implementation Programs
The incomplete programs (7% of the total General Plan
Implementation Programs) can be classified as follows:
• 2% (8) as being relatively easy to achieve from a resource
perspective
• 4% (16) as being of moderate difficulty
• 1% (5) as being difficult to achieve
15
Implementation Programs
by Element
• Land Use
• Housing
• Circulation
• Conservation & Open Space
• Noise
• Safety
• Parks & Recreation
• Water & Wastewater
16
13 14
15 16
2019-21 Financial Plan
5
Summary by Element
Summary: Status of General Plan Implementation Programs
General Plan Element Complete or
Ongoing
Difficulty to Complete
TotalLow Medium High
No. Pct. No. Pct. No. Pct. No. Pct.
Land Use 60 82% 2 3% 8 11% 3 4% 73
Housing 73 94% 2 2% 3 4% 0 0% 78
Circulation 67 97% 1 1.5% 1 1.5% 0 0% 69
Conservation & Open Space 65 96% 0 0% 3 4% 0 % 68
Noise 6 75% 1 12.5% 0 0% 1 12.5% 8
Safety 34 97% 1 3% 0 0% 0 0% 35
Parks and Recreation 38 95% 1 2.5% 0 0% 1 2.5% 40
Water and Wastewater 37 97% 0 0% 1 3% 0 0% 38
TOTAL 380 93% 8 2% 16 4% 5 1% 409
17
Assessment of Resource
Needs
HIGH LEVEL Resource Assessment
Remaining
Programs
Difficulty
FTE's
* and/or Consultant Costs
min max min max
Low 8 0 0.35 $0 $0
Medium 16 0.69 4.32 $0 $400,000
High 5 1.35 1.35 + $125,000 $125,000 +
Total 29 2.04 6.02 + $125,000 $525,000 +
18
Area Plan Implementation
Programs
• Railroad District Plan
• Mid-Higuera Area Enhancement District
• Downtown Concept Plan
• Airport Area Specific Plan
• Margarita Area Specific Plan
• Orcutt Area Specific Plan
• San Luis Ranch Specific Plan
• Avila Ranch Specific Plan
19
What Lies Ahead
20
17 18
19 20
2019-21 Financial Plan
6
Fiscal Health Response
Plan Update
Identified: $0.4M
4 of 5 Negotiations Complete
$994k savings by 2020-21
Identified: $1.1M
Total: $7.5M
21
2018-19 2019-20 2020-21
Plan Plan Plan Total
FHRP Est. Reduction/New Revenue 1,500 2,000 4,000 7,500
Revenue
New Business License 150 150
Code Enforcement 50 50
New Ways of Doing Business 20 20
TOT (Air BnB & homestays) 50 50
Cannabis Tax 100 1,200 1,500 2,800
Total Revenue 370 1,200 1,500 3,070
Expenditures
Concessions 436 270 994 1,699
Bond Refinancing 83 271 354
CalPers Prepayment 323 323
Department Operating Reductions 696 238 664 1,599
Total Expenditure 1,538 780 1,658 3,975
Total 1,908 1,980 3,158 7,045
FHRP Plan 1,500 2,000 4,000 7,500
Budgeted 1,908 1,980 3,158 7,045
Savings Still needed (oversavings) (408) 20 842 455
Fiscal Health Response Plan Update
22
Enterprise Funds
23
Water Fund
24
21 22
23 24
2019-21 Financial Plan
7
Accomplishments
Council Agenda Report, Page 7
25
What Lies Ahead
Council Agenda Report, Page 7
26
Sewer Fund
27
Accomplishments
Council Agenda Report, Page 8
28
25 26
27 28
2019-21 Financial Plan
8
Parking Fund
29
Accomplishments
1. Opened new Park and Ride lot at Calle Joaquin and US 101.
2. Implemented new Parking Enforcement Management System (PEMS)
3. License Plate Recognition (LPR) system to assist in enforcement and
data collection with new City policy on use (July 2018).
4. Completed Structural Assessment and Maintenance Report for all
three public parking structures.
30
Accomplishments
1. Worked with PG&E to coordinate new EV charging stations in two
parking structures
2. Implemented new rate structure in January 2018 to assist in funding
services and future Palm – Nipomo Parking Structure.
3. Completed EIR of the Palm-Nipomo Parking structure project and
scheduled review by Council.
31
Transit Fund
32
29 30
31 32
2019-21 Financial Plan
9
Accomplishments
• Purchased three fully modernized transit vehicles aimed at
enhancing the riding experience.
• Implemented approx. 85% of the recommended road
network route changes of the Short Range Transit Plan
enhancing; safety, reliability, accessibility and efficiency
• Made use of PTMISEA California State grant to add 9 new
solar powered bus shelters
• Recognized with FOUR industry awards; CalACT, APWA,
Metro and Mass Transit Magazine
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A3
What Lies Ahead
• Establishing stable and long term financial subsidy
support (e.g. SB1, FTA, TDA and CalPoly) in order
to implement increased service frequency, per
recommendations of the SRTP
• Expand transit fleet to meet service demand needs
with view of alternative energy options and financial
viability
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Strategic Scan Presentation
35
Recommendation
Review background information in preparation
of the 2019-21 Goal Setting Financial Process:
1. Status of 2017-19 Goals & Objectives
2. Status of the General Plan Implementation
3. Fiscal Health Response Plan Update
4. Strategic Scan
Confirm the date for the Goal Setting workshop
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