Agenda Item C.3
DISCUSSION/ACTION ITEM
Meeting Date: June 6, 2023
T
O: Mayor and Councilmembers
F
ROM: Robert Nisbet, City Manager
CO
NTACT: Luke Rioux, Finance Director
S
UBJECT: FY 2023/24 and 2024/25 Two-Year Budget Update
RE
COMMENDATION:
R
eceive a presentation on the updated Preliminary Operating and Capital Improvement Budgets for Fiscal Years 2023/24 and 2024/25 and provide direction, if any, regarding items to be addressed or included in the final recommended budget.
BACKG
ROUND:
O
n May 2, 2023, the Preliminary Operating Budgets for Fiscal Years (FY) 2023/24 and 2024/25 were presented to City Council. During this budget workshop, staff provided the City Council with an overview of the budget process and approach. Updated revenue and expenditure projections were reviewed, along with updates to the General Fund’s projected fund balance and Five-Year Forecast. The draft budget presented included policy direction as provided in the City’s updated Strategic Plan, each department’s annual work program, and City Council’s priorities from previous discussions on the new general transactions and use tax measure (Measure B).
On
May 22, 2023, staff presented the updated Comprehensive Capital Improvement Plan, and Capital Improvement Program (CIP) Budget for FY 2023/24 and 2024/25. During this budget workshop, staff provided the Council with an overview of the Comprehensive Capital Improvement Plan, and the three main components. The three components include a Comprehensive CIP Project List, the Five- Year CIP Project List and the CIP Budget for Fiscal Years 20 23/24 and 2024 /25. Additionally, Council received an update on priority projects that are actively being worked on by Public Works , Neighborhood Services and General Services. The review also included updated project costs, new funding amounts and estimated unfunded amounts . To fund these priority projects, s taff is recommending an allocation of $1.08 million from the General Fund in FY 2023/24 and $2.3 million in FY 2024/25.
S
taff received feedback from City Council at the budget workshops and this report summarizes the direction staff received from the City Council. Staff is now requesting Council review this direction and provide additional feedback, and direction for the following items:
1 Meet ing Date: June 6, 2023
P
age 2 of 10
1. Library Funding and Book Van
2. Creeks and Watershed Management Plan and Program (CWMP)
3. Review Measure B Chart
DI
SCUSSION:
S
ummary of Budget Updates:
T
he City Manager worked with Department Directors and staff on items discussed at the budget workshops. Additional information in each area, and any changes, is summarized in the section below and will be discussed further during staff’s presentation.
Li
brary Funding and Library Book Van:
Li
brary Funding
T
he Goleta Valley Library (GVL) is supported by multiple funding sources, which include the City’s General Fund and Special Revenue Funds. Special Revenue Funds include the County Per Capita, Measure L (City and County CSA 3 area), City Library DIF (when available) and Grants (when available).
T
he Goleta Valley Library has always served the greater Goleta Valley, not just the City of Goleta. As recently as 2015, the Library was funded solely by County per capita and Measure L revenues. However, service levels had declined, operational costs exceeded available revenues, and the Library was using dwindling one- time reserve funds to fund annual operations under City of S anta Barbara management. Goleta began to provide General Fund revenue to the Library in 2016 ($30,000) and took over management of the Library in 2018 as a municipal library. The City understood that, in taking over management, it would be taking on a greater role in funding the Library. However, part of the decision to do so, according to those Goleta staff who were involved in the decision, was the assurance that the GVL would continue to receive the County per capita allocation, for both the City and unincorporated County areas, that it always had. This was also key to the City’s agreement, at the behest of the County, to manage the Buellton and Solvang libraries. The Goleta Valley Library has indeed continued to receive this per capita funding.
T
he City of Goleta’s General Fund subsidy to the GVL has gradually increased since the City took over. The operating deficit was identified as $255,676 back in 2016. It is now $830,210 and growing, though spending is as tight as ever. The City of Goleta will budget in FY 23- 24 and 24- 25 to make up that difference, as necessary. Today, City of Goleta residents contribute, directly and indirectly, significantly more than residents from any other area in the Goleta Valley Library’s service zone. The following tables demonstrate this:
2 Meeting Date: June 6, 2023
The chart below divides this into per capita by subarea, using the same per capita methodology that the County puts together for libraries throughout the County.
Areas within
Zone 4
Est.
Pop. for
Area
FY 22/23
County
per capita
plus 3%3
Fees,
Friends
and
Donations Measure L City DIF
CITY GF
Operation
Subsidy TOTAL
PER
CAPITA
TOTAL
CSA #3 31,1882 $267,909 $28,706 $238,100 $0 $0 $534,714 $17.15 City of
Goleta 31,8812 $273,862 $29,343 $365,000 $1,700 $830,210 $1,500,116 $47.05 Gaviota Area 2,5742 $22,113 $2,369 $0 $0 $0 $24,482 $9.51 Hope Ranch 1,8812 $16,160 $1,731 $0 $0 $0 $17,891 $9.51 Isla Vista 19,0461 $163,609 $17,530 $0 $0 $0 $181,139 $9.51 Other County 8912 $7,655 $820 $0 $0 $0 $8,475 $9.51 Subtotal 89,5001 $751,307 $80,500 $603,100 $1,700 $830,210 $2,266,817
1Population Total for GVL service area is as provided by County of Santa Barbara (divided into Goleta and IV only) 2Goleta area population (other than Isla Vista) is as provided by the County, but divided into sub areas based on the 2020 Census percentage share for the same areas.
33% anticipated increase in County per capita for FY 23/24 4Support from Friends and User Fees presumed to be attributable to all areas of the service zone
The per capita comparison reflected above is just for status quo direct funding and does not i
nclude the additional book van funding included in the recommended budget or City administrative overhead that is not charged to the Library budget. If the $50,000 in the proposed City budget for the Library book van is approved (see below), City per capita will be $48.62 per City resident in direct funding.
3 Meeting Date: June 6, 2023
Library Book Van
State funding for a two -year pilot program for b ook van (“Bookvan”) service to Isla Vista has been fully expended, and there have been requests from representatives of the County and the Isla Vista Community Services District for the City to use Goleta Valley Library funds to continue the service at 20 hours per week ($100,000 per year in staffing costs, plus gasoline, liability insurance, materials and digital services, and administrative overhead).
City staff that were involved in the decision to assume management of the GVL insist that no commitment was ever made by the City to use existing County per capita funding for new services in Isla Vista. As demonstrated above, there is no “fat” in the budget for the Goleta Valley Library. Any per capita funding that is taken out of the region’s main library for mobile services to Isla Vista or other County areas must either lead to:
1) Cuts to the regional main library’s budget, which could lead to cuts in staffing and operational hours, affecting all patrons in the City’s service areas, or 2) Another increase to City of Goleta residents’ contributions to the Library, already significantly greater than contributions from other areas , to backfill the cost of the new service to Isla Vista.
As part of the proposed budget, staff have recommended increasing the General Fund contribution to the Library by $50,000 so that Book van service may continue at 10 hours per week, but to the whole Goleta Valley service zone including Old Town Goleta, not just Isla Vista. We have asked the County to match this $50,000 contribution for an additional 10 hours per week in Isla Vista. A few points about this request:
• The $50,000 the City is requesting from the County only includes direct salary and benefit costs for staff of the Bookvan.
• The Library and/or the City would separately absorb the full costs of gasoline, liability insurance, program support and supervision, materials and digital services, and administrative overhead. The City started doing this during the P ilot Program, to allow the state grant funds to stretch farther.
• If a revenue measure is passed by the County ’s voters in the next few years, staff anticipate that the County could use some of that funding for Bookvan service to Isla Vista in the long term.
• Staff have submitted a request to the Santa Barbara Women’s Fund for up to 2 years of gap funding for 10 hours per week of Isla Vista Bookvan service until the revenue measure kicks in or another source of funding can be identified. However, that funding wouldn’t be available until FY 24-25, if approved.
County staff have agreed to present this request for funding to the County Board of Supervisors.
Creeks and Watershed Management Plan and Program (CWMP):
The Creeks and Watershed Management Plan (CWMP) and Program are supported through various Public Works divisions’ budgets and staff, including Environmental Services, Parks & Open Spac e and the Capital Improvement Program (CIP ). Staff have 4 Meeting Date: June 6, 2023
proposed to focus on the San Jose Creek Fish Passage project during the next budget cycle1. While this is not a new project, and is a project that the City would have had to find a way to fund due to commitments to the state, it is identified as a project in the CWMP , and it was one of the crit ical unfunded projects (both the CIP project and the ongoing maintenance) that had been identified for possible Measure B funding as part of the 2022 revenue needs analysis. However, staff have removed it from the Measure B C hart, discussed in the next section of this report, based on Council feedback at the May 2, 2023, meeting.
There are numerous additional otherwise-unfunded creeks and watershed-related projects that Measure B will help support in the future. A planning and prioritization process is scheduled with the City’s CWMP Technical Advisory Committee (TAC) in the summer and fall of 2023. Staff will be returning to Council thereafter with a recommendation on how to prioritize these projects. At that point, discussion with Council about future funding can be held, including integrating these projects into Measure B priorities. As noted in the Measure B chart in the next section of this report, staff is recommending a new allocation of $150,000 every year in Measure B funds, beginning in FY 2024-25, for a Funding Reserve for Creeks and Watershed projects
2. This reserve account will continue to build up, until Council appropriates it for a CWMP related project.
In response to Council interest, staff also propose to fill a long-vacant Management Analyst position in the Parks and Open Space Division of Public Works. The position will focus 60% of its time on Creeks and Watershed, including coordinating a team of other staff members from the Parks and Open Space, Environmental Services, and Capital Improvement Divisions who plan and execute CWMP projects and programs, helping to identify grants and other funding opportunities to complete Creeks and Watershed projects, and advocating with other property owners to move their own creeks- and watershed-related projects
3 forward. The remaining 40% of this position will focus on other Parks and Open Space projects and priorities, many of which directly benefit the health of the creeks and watershed. The position is currently posted. Staff do not recommend adding additional positions to the budget at this time.
It is worth examining other places in the two- year budget where important creeks and watershed work will be occurring. The following lists summarize the existing work efforts by each divisions’ existing budget and will be discussed further during staff’s presentation.
Existing Parks and Open Space Division CWMP Work Efforts
• Urban Forest Management Plan (UFMP) Update
• Defensible Space Program/Fire Risk and Sedimentation Reduction • Abandoned Encampment Clean Ups
1 San Jose Creek Channel Fish-Passage project (one-time) at $ 375,000 in Year 1 and $750,000 in Year 2, and San Jose Creek Maintenance (ongoing) at $154,000 in both years. Additional funding for this project will still need to be identified.
2 To accommodate new ongoing Measure B funding for the Creeks and Watershed reserve, staff reduced ongoing funding in FY 2024-25 from $150,000 to $100,000 for Economic Development Plan implementation and from $250,000 to $150,000 for Old Town projects and priorities, many of which are already addressed by other funding categories, as Councilmembers pointed out at the May 2, 2023, meeting. 3 Two such projects were identified in Public Comment to the initial budget presentation on May 2, 2023. 5 Meeting Date: June 6, 2023
• City Adopt a Park Program for Weed Removal
• Dog Waste Baggy Program (Approximately 300,000 Bags per Year) • Wildfire Risk Reduction and Riparian Habitat Enhancements • Trash Removal/General Maintenance
Existing Environmental Services Division CWMP Work Efforts
• Full Trash Capture – full trash capture system as a treatment control, or series of treatment controls.
• Street Sweeping – litter removal around cars and obstructions. • CWMP Project Management – Coordinate stakeholders to develop programs, projects, priorities, and schedules for the CWMP.
• Watershed Assessments – treatment and infiltration project assessment, water quality forensics, and could also include things such as concrete channel removal evaluation.
• Intern or Civic Well fellow – 50% time dedicated to the CWMP. • Beautify Goleta – helps to reduce pollutants which affects water quality and wildlife.
Existing Capital Projects That Help Meet CWMP Goals
• Ekwill Street & Fowler Road Extensions
• Hollister Avenue Bridge
• San Jose Creek Bike Path - Northern & Southern Segments • San Jose Creek Bike Path - Middle Extent
• Ellwood Beach Drive Drainage Repair
• Evergreen Park Drainage Repair
• Old Town Full Trash Capture
• San Jose Creek Channel Fish-Passage Modification Project • Ellwood Coastal Trails and Habitat Restoration
• Ellwood Mesa/Sperling Preserve Butterfly Management Plan • Lake Los Carneros Master Plan
Measure B Recap and U
pdates:
In the November 2022 General Election, the voters of the City of Goleta approved a 1% additional Transaction and Use Tax (“sales tax increase”). This brought the City’s overall sales tax rate in alignment with other cities in the C ounty of Santa Barbara. The following is a copy of the ballot language.
MEASURE B2022
“To support Goleta’s 9 -1-1 response/crime prevention; cleanup trash in creeks to maintain coastal waters; address homelessness, fire risks from illegal encampments; maintain public safety, clean/maintain public areas; repair streets/potholes; increase recycled water use for parks; retain local businesses/jobs; maintain open spaces/natural areas and for general government use; shall a measure be adopted 6 Meet ing Date: June 6, 2023
P
age 7 of 10
establishing a 1¢ sales tax providing approximately $10,600,000 annually until ended by voters, requiring public spending disclosure?”
A
s approved by voters, these funds may be used over the long term to fund a wide range of general government needs and provide the city the flexibility when additional funds are needed, including addressing critical backlog of deferred maintenance items, priority unfunded projects and to maintain public safety. In June 2022, the City Council provided staff with certain preliminary priorities for the use of such funds. While these priorities were designed to reflect Council’s philosophy at that point in time and are non-binding, they were considered by staff in developing the recommended budget. These priorities were:
• Public Health, Safety & Infrastructur e (Estimated 51.7% of new funding): Including the City’s pavement program, Capital Improvement Program (CIP) projects, critical maintenance backlog for public infrastructure (concrete, street trees, traffic signals, ADA in the public rights-of-way), Homelessness Strategic Plan implementation, and Public Safety and Emergency Response (Police & Fire)
• Parks, Recreation, Creeks & Sustainability (E
stimated 20% of new funding):
Including Creek and Watershed Master Plan implementation, Bicycle and Pedestrian Master Plan implementation, critical maintenance backlog for parks and open space maintenance and storm drains (storm drains - creek and watershed), Ellwood Mesa/Sperling Preserve Butterfly Habitat Management Plan implementation, Parks, Facilities and Playgrounds Master Plan and Recreation Needs Assessment implementation, and Strategic Energy and Climate Action Plan Implementation.
• Jobs, Economy & Housing (E
stimated 18.3% of new funding): Including the
Affordable Housing Program, Economic Development Strategic P lan implementation, Childcare Programs, and Old Town investment (Visioning Process, Improvements and CIP projects).
• Other Vital Services and Capital Maintenance Projects (E stimated 10% of new
funding): Including Library Strategic Planning implementation, Goleta Community Center Strategic Plan implementation, critical public facility maintenance and replacement funding, and the Lake Los Carneros Master Plan implementation.
In accordance with the City’s reserve policies for disasters and budget contingencies, 3 3%
of the annual revenue increase from Measure B must be set aside in reserves. T his is a one-time cost, and in subsequent years only 33% of any incremental increase in Measure B funds will need to be set aside, also on a one-time basis.
A
t the May 2, 2023, budget workshop, staff provided a Measure B T able on the unfunded projects and priorities that Measure B would be programmed towards . In response to Council feedback, staff have:
• Added in the preliminary estimate of impacts of the increase to the Sheriff contract back in,
• Removed the San Jose Creek Fish Passage Project and on the ongoing maintenance cost,
7 Meeting Date: June 6, 2023
• A dded an item for ongoing funding for the Creeks and Water shed reserve account (explained earlier in this report) , and reduced funding for Economic Development and Old Town projects and priorities accordingly, and
• R emoved the Bookvan funding increase.
These updates are highlighted in yellow in the revised table below:
Fiscal Year 2023/24 and 2024/25 List of Measure B Projects & Programs
Categories FY 23/24 FY 24/25
Policy Reserves
Policy Reserves - Increase Reserves per
33% General Fund Reserve Policies (one-
time)
$1,749,000 $1,749,000
Subtotal Reserves $1,749,000 $1,749,000
Public Health, Safety & Infrastructure
Increase Annual Pavement Program
(ongoing)
$1,665,500 $3,331,000
City’s match for new Train Station project
(one-time)
N/A $1,000,000
Increase maintenance of concrete, trees,
signals, ADA (ongoing)
$ 381,000 $ 691,000
Fund the City’s Homelessness program
(ongoing)
$ 280,000 $ 280,000
Sheriff contract increases (Public Safety) $ 780,736 $ 1,149,634 Subtotal Public Health, Safety &
Infrastructure
$3,107,236 $6,451,634
Parks, Recreation, Creeks &
Sustainability
Funding reserve for Creeks and Watershed
(ongoing)
N/A $ 150,000
Increase funding for maintenance of open
spaces, storm drains (ongoing)
$ 530,000 $ 541,000
Increase funding for Ellwood/Butterfly
management (ongoing)
$ 200,000 $ 200,000
Subtotal Parks, Recreation, Creeks &
Sustainability
$730,000 $891,000
Jobs, Economy & Housing
Transfer funds to Affordable Housing Fund
(ongoing)
$ 200,000 $ 250,000
Creation of a comprehensive Affordable
Housing plan (one-time)
$ 50,000 N/A
Funding to implement Economic
Development plan (ongoing)
$ 75,000 $ 100,000
Funding for Childcare Programs (ongoing) $ 50,000 $ 250,000 Funding for Old Town projects and priorities
(ongoing)
N/A $ 150,000
Subtotal Jobs, Economy & Housing $ 375,000 $ 750,000
8 Meeting Date: June 6, 2023
Categories FY 23/24 FY 24/25
Other Vital Services and Capital
Maintenance
Address shortfall in book budget for Library
(ongoing)
$ 204,700 $ 74,300
GVL Strategic Plan Implementation
(ongoing)
N/A $ 82,100
Design for Library facility refresh project
(one-time)
$ 200,000 $ 50,000
Design Lake Los Carneros Footbridge
replacement
(one-time)
$ 330,000 N/A
Design for Historic Train Station preservation
project
(one-time)
$ 250,000 $ 50,000
Design for Community Center Refresh
project (one-time)
N/A $ 150,000
Implement Community Center Strategic Plan
(ongoing)
$ 75,000 (see above)
Add new position - facility maintenance
coordinator
$ 114,488 $ 117,923
Subtotal Other Vital Services and Capital
Maintenance
$1,174,188 $524,323
Debt capacity, Financial and Support
Services for increased programs (ongoing)
TBD $ 670,000
TOTAL MEASURE B EXPENSES $7,135,424 $11,035,957
TOTAL MEASURE B REVENUES $5,300,000 $10,600,000
USE OF OTHER FUNDS ON THESE
MEASURE B PROJECTS
$(1,835,424) $(435,957)
Though they have been removed from the table, the San Jose Creek Fish Passage Project, San Jose Creek Fish Passage maintenance, and the increase to Bookvan funding are still in the proposed budget and will still further Council’s Measure B priorities. The rededication of 60% of a budgeted Management Analyst’s time toward Creeks and Watershed priorities, while not reflected above, will also further the Creeks and Watershed Master Plan goals.
It should be noted that the total “Measure B” expenditures listed above will be reduced in Fiscal Year 2025/ 26 and future years as the one- time costs ( e.g., funding General Fund reserves, Train Station match) are complete. This will potentially allow for many additional projects, including but not limited to CWMP projects identified during the prioritization process this summer and fall, to be completed with Measure B funds in future fiscal years.
Finally, it should be noted that Measure B revenues are general tax revenues and are available and appropriate to be considered within the overall General Fund budget. Behind- the-scenes forces can affect other General Fund revenues and expenditures and may affect the Council’s priorities for spending overall in any given year. For example, imbedded in the budget is the ongoing reduction in estimated Cannabis Revenue of $1,000,000 per 9 Meeting Date: June 6, 2023
year beginning in FY 2023/24 and, while staff have budgeted $10.5 Million for sheriff contract costs, final amounts for that fiscal year and future fiscal years could come in higher.
FISCAL IMPACTS:
The preliminary budgets are still in draft form, and any changes will be finalized and released in June for consideration at the public hearing on June 20, 2023. Any budget increases in programs may require reduction in others.
ALTERNATIVES:
The City Council can accept their previously provided direction and approve of these budget changes as presented in this report.
Reviewed By: Approved By:
Kristine Schmidt Robert Nisbet
Assistant City Manager City Manager
ATTACHMENTS:
1. Presentation
10 ATTACHMENT 1:
FY 2023/24 and 2024/25 Two-Year Budget Update Presentation
11 FY 2023/24 &
2024/25
Preliminary
Budget Update
City of Goleta
City Council Meeting
June 6, 2023
12 Budget Updates - Topics
Operating and CIP Budget Updates
Special Issues
Library Book Van
Creeks and Watershed Management Plan and Program
(CWMP)
Pending Items
Review Measure B Chart
2Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 13 Budget Updates
Preliminary Operating Budgets for FY 23/24 & 24/25
Workshop held May 2, 2023
Updated Comprehensive Capital Improvement Plan and
Preliminary CIP Budget for FY 23/24 & 24/25
Workshop held May 22, 2023
3Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 14 4
Library and Bookvan
15 Library Funding
As recent as 2015, Library was funded only by County (per capita) and Measure L revenues
In 2016, service levels had declined, costs exceeded revenues by $255,676 , and Library's reserves were dwindling under City of SB management
In 2016 Goleta committed $30,000 from General Fund
and supported a County revenue measure (which never happened). Goleta decided in 2018 to take over management of GVL as a municipal library, knowing this would be a big commitment Budget gap that Goleta residents are funding has grown to $830,210 per year
5Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 16 Who Pays for the Region's Library?
6Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review FY 24/25FY 23/24SourceAREA
$774,300$751,790County Per CapitaALL AREAS IN ZONE 4
• Isla Vista & Hope Ranch,
other
• County CSA 3
• City of Goleta
$70,000$67,000Support from Friends & other Donations
$12,700$13,500Library User Fees
$245,200
$375,900
$621,100
$238,100
$365,000
$603,100
Measure “L” ‐ County (CSA 3)
Measure “L” –C i t y
MEASURE “L” AREAS ONLY
• County CSA 3
• City of Goleta
$132,100$1,700City DIF Fees (FY 24/25 Est.)*CITY OF GOLETA ONLY • City of Goleta $826,600$830,210General Fund Operations Subsidy $50,100$50,000General Fund – Book Van
$495,900$461,420
Value of Admin Overhead Not Charged
(20%)
‐‐Real Estate (market value)
17 Historical Library Budget (Draft)
7Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review $737,380
$742,570 $752,358 $742,697 $729,425
$751,790
$774,300
$1,860,393 $1,905,775 $1,873,448
$2,110,494 $2,158,051 $2,267,300
$2,436,800
$491,747 $482,012 $473,909 $467,494 $539,351
$830,210 $826,600
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 Friends, Donations, Fees
City General Fund
Measure L ‐ City
City Library DIF
County Per Capita
Measure L ‐ County
Use of Fund Balance TOTAL EXPENDITURES City General Fund Chart is a draft summary of the Library Budget since the City took over direct management in FY 18/19 Numbers represent the budgeted numbers and not actuals, and removes all grant funds FY 18/19 through 22/23 includes estimated PW facilities maintenance costs previously in Public Works and General Services, and now in Libr ary County Per Capita
City General Fund
Total Library Expenditures
18 Compare Goleta Resident Per Capita
FY 23/24
PER
CAPITA
TOTALTOTAL
CITY GF
Ops
Subsidy
City
DIFMeasure L
Library
User
Fees
Support
from
Friends
and
Don.4
FY 22/23
County per
capita plus
3%3
Estim.
Pop. for
Area
Areas within
Zone 4
$17.15$534,714$0$0$238,100$4,814$23,892$267,90931,1882CSA #3 County $47.05$1,500,116$830,210$1,700$365,000$4,921$24,422$273,86231,8812City of Goleta $9.51$24,482$0$0$0$397$1,972$22,1132,5742Gaviota Area
$9.51$17,891$0$0$0$290$1,441$16,1601,8812Hope Ranch
$9.51$181,139$0$0$0$2,940$14,590$163,60919,0461Isla Vista $9.51$8,475$0$0$0$138$683$7,6558912Other County
$2,266,817$830,210$1,700$603,100$13,500$67,000$751,30789,5001Subtotal 8Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 1) Pop as provided by County (IV and greater Goleta areas) 2) Pop as per County with area % breakdown of Census area (other areas) 3) Includes 3% proposed increase
4) Friends and donations equally distributed
WITH BOOK VAN, CITY RESIDENT PER CAPITA = $ 48.62 ; COUNTING DONATED ADMIN = $ 63.10 19 Library Bookvan
Recommendation
City increase City's GF contribution by $50,000 to allow 10 hours of Bookvan staffing in whole of GVL service area (including Old Town) Request County to cover $50,000 to cover additional 10 hours of Bookvan staffing in Isla Vista specifically
• County could choose to fund more than 10 hours
• City staff submit for gap funding from SB Women's Fund for Isla Vista in FY 24-26 and FY 25-26
• Long-term funding could come from potential County revenue measure City/Library will continue to absorb costs of gasoline, liability insurance, program support and supervision, materials and digital services, and administrative overhead (not part of above funding)
Staff will work with LAC to determine best use of budgeted hours 9Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 20 10
Creeks & Watershed
21 CWMP Implementation
San Jose Creek Fish Passage project recommended for
immediate funding (but taken out of Measure B chart)
Identified in the CWMP
Was identified as unfunded project in Measure B revenue needs analysis Would have needed to be funded somehow due to State commitments CWMP prioritization process upcoming this summer
Many existing CWMP work efforts are in the budget
Environmental Services
Parks & Open Spaces
Capital Improvement Program (CIP)
Added to Measure B Chart- New Creeks and Watershed reserve account at $150,000 per year
Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 11 22 Upcoming CWMP Process
Summer/Fall 2023
Staff Team Working with the CWMP's Technical Advisory Committee Develop recommendations on
Project Prioritization
Funding considerations
Other implementation considerations
Presentation to City Council
Discussion about funding
May reprioritize in context other Measure B priorities 12Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 23 Existing CWMP Work Efforts
Environmental Services Division
Full Trash Capture - full trash capture system as a treatment control, or series of treatment controls.
Street Sweeping - litter removal around cars and obstructions, CWMP Project Management Contract – Coordinate stakeholders to develop programs, projects, priorities, and schedules for the CWMP Watershed Assessments - treatment and infiltration project assessment, water quality forensics, and could also include things such as concrete channel removal evaluation.
Intern or CivicSpark Fellow - 50% time dedicated to the CWMP Beautify Goleta - helps to reduce pollutants which affect water quality and wildlife
13Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 24 Existing CWMP Work Efforts
Parks and Open Space Division
Urban Forest Management Plan (UFMP) Update
Defensible Space Program/Fire Risk and Sedimentation Reduction Abandoned Encampment Clean Ups
City Adopt a Park Program for Weed Removal
Dog Waste Baggy Program (Approximately 300,000 Bags per Year) Wildfire Risk Reduction and Riparian Habitat Enhancements Trash Removal/General Maintenance
14Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 25 CWMP CIP Projects
Upcoming Projects That Meet CWMP Goals
Ekwill Street & Fowler Road Extensions *
Hollister Avenue Bridge
San Jose Creek Bike Path - Northern & Southern Segments San Jose Creek Bike Path - Middle Extent
Ellwood Beach Drive Drainage Repair
Evergreen Park Drainage Repair
Old Town Full Trash Capture
San Jose Creek Channel Fish-Passage Modification Project Ellwood Coastal Trails and Habitat Restoration
Ellwood Mesa/Sperling Preserve Butterfly Management Plan Lake Los Carneros Master Plan
Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 15 26 CWMP Staff Support
Fill Vacant Management Analyst Position in Parks and Open Space 60% CWMP (40% other Parks and Open Space projects)
Coordinate staff CWMP Team, CWMP grant-finding, regional advocate Recruitment Pending
CWMP Team: Other Staff Working on Creeks & Watershed Priorities (percent of time is approximate)
Parks and Open Space Division -- Manager (15%) and Admin Assistant (10%) Environmental Services Division – Manager (15%), Specialist (30%), and Admin Assistant (30%).
• New CivicSpark Fellow (50%)
Capital Improvement Program (CIP) Project Managers (various) New staff positions are not recommended at this time
16Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 27 17
Review Measure B Chart
28 Measure B Updates
18Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review “To support Goleta’s 9‐1‐1 response/crime prevention; cleanup trash in creeks to maintain coastal waters; address homelessness, fire risks from illegal encampments; maintain public safety, clean/maintain public areas; repair streets/potholes; increase recycled water use for parks; retain local businesses/jobs; maintain open spaces/natural areas and for general government use; shall a measure be adopted establishing a 1¢ sales tax providing approximately $10,600,000 annually until ended by voters, requiring public spending disclosure?” Council Preliminary Priorities:
Public Health, Safety & Infrastructure (51.7%)
Parks, Recreation, Creeks & Sustainability (20%)
Jobs, Economy & Housing (18.3%)
Other Vital Services and Capital Maintenance Projects (10%) Other Considerations:
33% one-time funding of reserves (General Fund Reserve Policies) Reduced ongoing Cannabis Revenues
Sheriff Contract Increases
Impacts to organization operations (finance & support services) and debt capacity estimated at 6.7% 29 Measure B Updates
19Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review FY 24/25FY 23/24Policy Reserves
$1,749,000$1,749,000Policy Reserves - Increase Reserves per 33% General Fund Reserve Policies (one-time)
$1,749,000$1,749,000Subtotal Reserves
Contributions to fund contingency reserves are one-time. In future years, only 33% of incremental revenue increases will be set aside Comprehensive review of evaluating reserve categories and amounts under long range projects contingency on Finance staff capacity
30 Measure B Updates
20Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review FY 24/25FY 23/24Public Health, Safety & Infrastructure
$3,331,000$1,665,500Increase Annual Pavement Program (ongoing) $1,000,000N/ACity’s match for new Train Station project (one-time) $ 691,000$ 381,000Increase maintenance of concrete, trees, signals, ADA (ongoing)
$ 280,000$ 280,000Fund the City’s Homelessness program (ongoing) $ 1,149,634$ 780,736Sheriff contract increases (Public Safety) $6,451,634 $3,107,236 Subtotal Public Health, Safety & Infrastructure 31 Measure B Updates
21Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review FY 24/25FY 23/24Parks, Recreation, Creeks & Sustainability $ 150,000N/AFunding reserve for CWMP (ongoing)
$ 541,000$ 530,000Increase funding for maintenance of open spaces, storm drains (ongoing)
$ 200,000$ 200,000Increase funding for Ellwood/Butterfly management (ongoing)
$891,000$730,000Subtotal Parks, Recreation, Creeks & Sustainability Note:
CWMP ‐ San Jose Creek Channel Fish Passage Project and Ongoing Maintenance removed from Measure B table ‐ FY 23/24: $529,000 FY 24/25: $904,000 60% of vacant Management Analyst in Parks and Open Space dedicated 50% of CivicSpark Fellow dedicated
32 Measure B Updates
22Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review FY 24/25FY 23/24Jobs, Economy & Housing
$ 250,000$ 200,000Transfer funds to Affordable Housing Fund (ongoing) N/A$ 50,000Creation of a comprehensive Affordable Housing plan (one-time)
$ 100,000$ 75,000Funding to implement Economic Development plan (ongoing)
$ 250,000$ 50,000Funding for Childcare Programs (ongoing) $ 150,000N/AFunding for Old Town projects and priorities (ongoing) $ 750,000$ 375,000Subtotal Jobs, Economy & Housing
33 Measure B Updates
23Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review FY 24/25FY 23/24Other Vital Services and Capital Maintenance $ 74,300$ 204,700Address shortfall in book budget for Library (ongoing) $ 82,100N/AGVL Strategic Plan Implementation (ongoing)
$ 50,000$ 200,000Design for Library facility refresh project (one-time) N/A$ 330,000Design Lake Los Carneros Footbridge replacement (one-time) $ 50,000$ 250,000Design for Historic Train Station preservation project (one-time) $ 150,000N/ADesign for Community Center Refresh project (one-time) (see above)$ 75,000Implement Community Center Strategic Plan (ongoing) $ 117,923 $ 114,488 Add new position- facility maintenance coordinator $524,323$1,174,188Subtotal Other Vital Services and Capital Maintenance $ 670,000TBDDebt capacity, Financial and Support Services for increased programs (ongoing)
34 Measure B Updates
24Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review FY 24/25FY 23/24Other Vital Services and Capital Maintenance $11,035,957 $7,135,424TOTAL MEASURE B EXPENSES
$10,600,000$5,300,000TOTAL MEASURE B REVENUES
$(435,957) $(1,835,424)USE OF OTHER FUNDS ON THESE MEASURE B PROJECTS Other Reminders:
Cannabis Revenues declined by $1 Million per year, offsetting Measure B New General Fund revenue source goes into effect January 1, 2024, actual re
venue performance not known until May/June 2024
One-time costs (e.g., funding contingency reserves, one-time CIP funding), funds then t
o become available for other priorities in future fiscal years General tax gives City most flexibility to continue to address unfunded priorities and def
erred maintenance
35 25
Other Considerations
36 Pending Items
Final Sheriff Contract Cost for FY 23/24
Preliminary FY 23/24 Budget: $10.5 million
Still far apart from Sheriff staff proposals
Unfunded (Partially Funded) Active/Priority CIP Projects Updated analysis identified a list of 11 high priority CIP projects needing additional funding t
o close the gap in the near term
Current strategy is phased approach in “pay-go” funding • Recommending re-prioritizing and reprogramming budget from non-active CIP projects • Closing out completed projects and releasing budget and evaluating fund balances after June 30th General Fund
Updated ending unassigned fund balances (unaudited) will be known by September 26Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 37 Looking Ahead
Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 27 DescriptionKey Dates
Preliminary Budget Update June 6, 2023
FY 23/24 & FY 24/25 Budget AdoptionJune 20, 2023
Citywide User Fee UpdateAugust 15, 2023
FY 22/23 Fourth Quarter Financial Review
(July 1, 2022 – June 30, 2023)
September 19, 2023
1% Transaction and Use Tax goes into effectJanuary 1, 2023 City to start receiving new tax revenuesApril – May, 2023 FY 24/25 Mid-Cycle Budget UpdateJune 18, 2024
38 Recommendations
Tuesday, June 6, 2023 ‐ FY 2023/24 & 2024/25 Preliminary Budget Update Review 28 Recommendations:
Receive a presentation on the updated Preliminary Operating and Capital Improvement Budgets for Fiscal Years 2023/24 and 2024/25 and provide direction, if any, regarding items to be addressed or included in the final recommended budget.
39