Changes from Financial Plan
Mid-Year Report and Approved Changes to Budget Appropriations The mid-year report the City Council receives, provides a thorough review of the City’s financial condition halfway through the fiscal year. It reports out on work programs, capital projects, and reviews the current revenue and overall expenditure trends. It also serves to approve possible one-time allocations of unassigned fund balance as reported through the City’s audit and Annual Comprehensive Financial Report and allows the Council to adjust revenue and expenditure assumptions should the need arise. 2021-22 Mid-Year Review - February 2022
Though in most years the mid-year review is a check-in and discussion about the one-time use of unassigned fund balance, the 2021-22 Fiscal Year was anything but “most years”. With the ongoing pandemic-related rollercoaster or, as others have characterized it, Pandemic Flux, the City organization found itself in a situation to address emerging needs of the community and utilize available resources without hesitation or delay. The mid-year therefore included requests for immediate action and resource allocation for one-time efforts as well as ongoing needs to position the City in a place of proactive engagement. The approved ongoing expenditures have now been included in the 2022-23 Financial Plan Supplement and considered in the long-term forecast (page 23) The following actions were taken that will influence year-end balances and adjust previously adopted programs and services budgets in FY 2022-23.
1. Additional CalPERS payments consistent with the Fiscal Health Response Plan (FHRP). The total payment equates to $10.2 million from the General Fund and $2.2 million from the enterprise funds, which will put the City back on track with its schedule to pay down the pension obligation over 20 years.
Fund Down-Payment
General Fund 10,200,000
Water Fund 840,685
Sewer Fund 864,037
Parking Fund 311,114
Transit Fund 64,031
Whale Rock 109,229
TBID 40,678
Total $12,429,774
Budget Document Pg. 10
Changes from Financial Plan
2. One-time and ongoing operating expenditure that are now incorporated into the Financial Plan Supplement and the long-term forecast:
Table 1: General Fund Operating Budget Requests FY 21-22 FY 22-23 Available Balance $ 2,273,520 $ 911,925
1 2nd Legal Assistant Ongoing - 73,400
2 One-time Contingency: Benchmark Study Adjustments One-time 250,000 - 3 Conversion of City Attorney Contract Positions(3 FTE) 1 Ongoing - -
4 Hybrid Public Meeting Support (0.5 FTE) Ongoing - 60,888 5 Monsido - ADA Compliance Software Ongoing - 4,900
6 Temporary Office Leasing and Equipment One-time 197,040 7 Transitional Legal Services Ongoing - 32,000
8 Virtual Meeting Software Ongoing - 6,200
9 Part-time Fire Inspector (0.5 FTE) (Revenue Offset) Ongoing 11,025 33,410 10 Part-time, Contract Attorney Resource Ongoing - 94,100 261,025 501,938
Remaining balance2 $2,012,495 $409,987
Table 2: LRM Operating Budget Requests FY 21-22 FY 22-23 Available Balance $ 1,531,000 $ 1,304,870
1 Housing/Homelessness Contract Position One-time 40,000 80,000 2 Increase in Mission Plaza Maintenance Ongoing 27,000 27,000 3 Convert Mobile Crisis Unit to Permanent (1 FTE)3 Ongoing - - 4 Accelerate New Streets Position One-time - -
5 Additional Pressure Washing Ongoing 25,000 25,000
6 Additional Pruning/Watering Ongoing 200,000 200,000
7 Additional Streets Maintenance Staff (2 FTE) Ongoing 60,750 243,000 8 Additional Supplies for Downtown Maintenance
Program Ongoing - 25,000
9 CAPSLO Programming – Railroad Square Safe
Parking One-time 64,633 -
10 Centralized Resident Inquiry Platform Ongoing 40,000 40,000 11 CIP Staff Augmentation Study – Conversion of
Existing Funding to Positions (4 FTE) Ongoing - -
12 Community Services Coordinator (1 FTE) Ongoing - 9,728 1 The fiscal impact for this request was already included as “ongoing” in the 2021-23 Financial Plan. This is only a request to add Full Time Equivalent (FTE) positions. 2 Given the remaining uncertainty and volatility that the economy is facing, staff recommend not appropriating any additional expenditures at this time. 3 The fiscal impact for this request was already included in the 2021-23 Financial Plan as “one-time”. This is only a request to add Full Time Equivalent (FTE) positions and approve the request as “ongoing”. The ongoing fiscal impact is included in the revised long-term forecast.
Budget Document Pg. 11
Changes from Financial Plan
Table 2: LRM Operating Budget Requests FY 21-22 FY 22-23 Available Balance $ 1,531,000 $ 1,304,870
13 Public Safety Customer Engagement Ongoing 17,000 12,000 14 Mobile Data Computers One-time 14,200 -
15 Supplemental Overtime for Farmer’s Market
Support Ongoing 15,000 15,000
16 Contract Volunteer Coordinator P&R One-time 32,850 101,508 17 Converting Contract Homelessness Response
Manager to FTE (1 FTE)3 Ongoing - -
18 Emergency Manager (1 FTE) Ongoing 38,627 143,061
19 Facilities Additional Contract Funding Ongoing 25,000 20 Parks Additional Contract Funding Ongoing - 40,000
21 Parks Maintenance Beautification Gardner (1 FTE) Ongoing 48,600 97,200 Total 623,660 1,083,497
Remaining balance $907,340 $221,373
Budget Document Pg. 12
Consolidated Financials – All Major Funds Combined
Section 3: Consolidated Financials – Major Funds Combined Consolidated Financials – Revenues and Expenditures
*Includes ARPA allocation as recommended by the ARPA ad-hoc subcommittee (See Budget Section 2).
Table C1: Total Revenue by Fund
(in thousands)
Footnote
2020-21
Actual
2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 Tax & Franchise Revenue $70,896 $87,092 $84,379 $90,156 7% 2 Service Charges & Other Revenue
3 General Fund $16,749 $19,937 $19,369 $20,194 4%
4 Water Fund $29,435 $26,224 $27,794 $26,980 -3%
5 Sewer Fund $21,784 $23,885 $21,058 $20,836 -1%
6 Parking Fund $3,349 $4,611 $6,494 $6,533 1%
7 Transit Fund 1 $7,243 $7,707 $4,950 $11,133 125%
8 Assessment Revenue $1,631 $1,689 $1,812 $2,002 10%
9 10 Proceeds from Debt Financing
11 Water Fund $11,030 $3,270 - -
12 Sewer Fund 2 $20,212 $89,916 $4,865 $427 -91%
13 Total $182,329 $264,331 $169,326 $178,261 5%
1 - Increase due to additional Federal Grants. See budget section 4c for more detail 2 - Decrease due to timing of long-term debt proceeds reciepts Table C2: Total Expenditures by
Fund (in thousands)
2020-21
Actual
2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund* $ 79,125 $ 101,731 $ 103,621 $ 108,614 5% 2 Business Activities
3 Water Fund $ 31,396 $ 39,679 $ 27,632 $ 28,340 3%
4 Sewer Fund $ 48,754 $ 123,584 $ 24,367 $ 18,125 -26%
5 Parking Fund $ 4,837 $ 7,125 $ 11,520 $ 14,347 25%
6 Transit Fund $ 5,857 $ 8,293 $ 4,895 $ 8,027 64%
7 Special Revenue
8 Tourism Assessment $ 1,027 $ 1,640 $ 1,582 $ 1,577 0% 9 Downtown Assessment $ 249 $ 245 $ 275 $ 275 0%
10 Total $ 171,244 $ 282,297 $ 173,893 $ 179,304 3%
Table C3: Expenditures by
Category (in thousands) 2020-21 Actual 2021-22 Budget 2022-23 Original Budget 2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 Staffing $ 64,014 $ 69,732 $ 73,810 $ 76,920 4%
2 Contract Services $ 11,619 $ 16,379 $ 13,759 $ 14,333 4% 3 Other Operating Expenses $ 29,850 $ 28,851 $ 27,457 $ 32,694 19% 4 Capital Investment $ 58,518 $ 160,651 $ 46,390 $ 48,690 5% 5 Debt* $ 7,244 $ 6,685 $ 12,476 $ 6,667 -47%
6 Total $ 171,244 $ 282,297 $ 173,893 $ 179,304 3%
* Reduction in debt due to an update to the timing of the first debt payment for the Sewer Fund SRF Loan. The first payment is now due in FY 2023-24.
Budget Document Pg. 13
Consolidated Financials – All Major Funds Combined
Consolidated Financials – Reserves and Fund Balances (see fund sections for detail) Consolidated Financials – Transfers between funds
Continued on next page
Table C4: Operating
Reserve (in thousands) 2020-21 Actual 2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund
2 Operating $ 11,830 $ 12,014 $ 11,916 $ 13,035 9%
3 Capital $ 3,426 $ 3,592 $ 3,809 6%
4 Water Fund $ 4,106 $ 4,652 $ 4,483 $ 4,651 4%
5 Sewer Fund $ 2,160 $ 2,496 $ 3,549 $ 2,477 -30%
6 Parking Fund $ 732 $ 921 $ 731 $ 970 33%
7 Transit Fund $ 673 $ 981 $ 837 $ 850 2%
Table C5: Unassigned Fund
Balance (in thousands) 2020-21 Actual 2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund $ 512 $ 2,095 $ 2,493 $ 301 -88%
2 Water Fund $ 23,569 $ 10,428 $ 12,668 $ 9,241 -27%
3 Sewer Fund $ 28,273 $ 21,022 $ 25,954 $ 20,588 -21%
4 Parking Fund $ 12,454 $ 9,750 $ 5,396 $ 2,929 -46%
5 Transit Fund $ 3,411 $ 1,148 $ 1,523 $ 4,373 187%
Table C6: Reimbursement
Transfers In/(out) 2020-21 Actual 2021-22 Budget 2022-23 Original Budget 2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund Transfer In $ 4,578,402 $ 4,717,442 $ 4,811,791 $ 4,461,578 -7% 2 Water Fund $ (1,729,965) $ (1,722,409) $ (1,756,857) $ (1,535,175) -13% 3 Sewer Fund $ (1,632,521) $ (1,712,752) $ (1,747,007) $ (1,497,395) -14% 4 Parking Fund $ (710,211) $ (869,887) $ (887,285) $ (872,976) -2% 5 Transit Fund $ (321,727) $ (226,183) $ (230,707) $ (365,544) 58% 6 Whale Rock $ (183,978) $ (186,211) $ (189,935) $ (190,488) 0% Budget Document Pg. 14
Consolidated Financials – All Major Funds Combined
Consolidated Financials – Transfers between funds
Consolidated Financials - Capital Transfers
1 - Reduction due to the updated ARPA allocation. Original budget assumed the allocation of $8.9M split equally across FY 2021-22 and FY 2022-23, with $4.465 million being deposited into the Infrastructure Investment Fund in 2022-23. With the updated ARPA allocation ($13.5M), Council took action on March 1, 2022, to move $9.9 million into the Infrastructure Investment Fund. ($6.7 million was transferred in FY 2021-22 and $3.1 million will be transferred in FY 2022-23). 2 - Reduction due to the transfer of Capital Budget into Operating Budget for CIP Augmentation resources. See Budget Section 7 for more detail.
Table C7: Operating
Transfers In/(out) 2020-21 Actual 2021-22 Budget 2022-23 Original Budget 2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 Transfers in
2 General Fund Transfer in $ 3,538,869 $ 3,426,103 $ 3,602,451 $ 4,190,415 16% 3 Insurance Fund $ 3,818,617 $ 4,146,445 $ 4,250,000 $ 4,250,000 0% 4 Transfers Out
5 General Fund Transfer out $ (3,818,617) $ (4,146,445) $ (4,250,000) $ (4,250,000) 0% 6 Gas Tax $ (1,082,390) $ (1,223,937) $ (1,245,026) $ (1,377,557) 11% 7 Affordable Housing Fund $ (57,000) $ (57,000) $ (57,000) $ (57,000) 0% 8 TDA Fund $ (45,900) $ (45,000) $ (45,000) $ (45,000) 0% 9 TIF Fund $ (285,600) $ (280,000) $ (280,000) $ (280,000) 0% 10 TBID Fund $ (25,068) $ (28,852) $ (31,012) $ (34,544) 11% 11 IT Replacement Fund $ (50,000) $ (106,000) $ (109,180) $ (152,702) 40% 12 Water Fund $ (943,003) $ (794,769) $ (900,000) $ (776,578) -14% 13 Sewer Fund $ (769,208) $ (655,312) $ (700,000) $ (1,076,388) 54% 14 Parking Fund $ (280,700) $ (235,233) $ (235,233) $ (390,646) 66% Table C8: Capital Transfers
In/(out)
Footnote 2021-22 Budget 2022-23 Original
Budget
2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund 1 $ (7,177,916) $ (7,949,558) $ (6,602,325) -17% 2 LRM 2 $ (17,866,400) $ (18,763,050) $ (17,979,590) -4% 3 Capital Outlay $ 14,257,798 $ 16,967,220 $ 16,183,760 -5% 4 Fleet $ 1,265,000 $ 1,045,000 $ 1,045,000 0%
5 IT Replacement $ 988,973 $ 564,777 $ 564,777 0%
6 Major Facilities Maint $ 867,500 $ 593,200 $ 593,200 0% 7 Infrastructure Investment 1 $ 7,222,545 $ 7,099,911 $ 5,752,678 -19% 8 Public Art Fund $ 442,500 $ 442,500 $ 442,500 0%
Budget Document Pg. 15
General Fund
Section 4: General Fund Overview
The City has eight service departments under the purview of the City’s General Fund. The Utilities Department, administering Water & Sewer, as well as the Parking and Transit programs are administered and accounted for as business activities and the related information is presented in the “Enterprise Fund” section of this budget document.
Revenue
Trying to develop a revenue forecast during a pandemic coupled with hyperinflation, looming international crises, and unpredictable labor and cost increases is a complex, dynamic and fluid endeavor.
As the City approached the 2022-23 Supplemental Budget, staff used the combination of current economic trends, local data points, its own scenario modeling, and major tax revenue forecasts from multiple external sources, to present a well-informed and updated forecast for Council.
Sales Tax: Like the rest of the nation, the City experienced a surge of consumption that corresponded with the lifting of lockdowns and stimulative fiscal and monetary policy and record levels of corporate and personal savings. While the U.S economy has largely recovered from the pandemic-driven downturn, new challenges arose. Higher labor and raw material costs along with inflationary pressures drive taxable good prices upward and increase the City’s sales tax revenue. However, higher prices reduce consumer demand and increase the City’s own expenditure costs. It is still unclear how these factors will influence the local economic forecast but staff forecasts a weakening of sales tax receipt growth beginning in 2023, followed by a modest 2% growth in the outer years.
Property Tax: The City receives its annual property tax forecasts directly from the County Assessor.
Throughout 2021 and into 2022, there was a considerable increase in home prices primary due to low Table G-1: General Fund
Revenue Overview 20-21 Actuals 21-22 Budget 22-23 OriginalBudget 22-23 Revised
Budget Change % Change
Tax & Franchise Revenue
Sales Tax (Bradley Burns) $ 20,067,740 $ 20,790,779 $ 19,086,000 $ 21,789,000 $ 2,703,000 14% LRM G-20 $ 12,779,713 $ 25,810,000 $ 25,202,000 $ 27,049,000 $ 1,847,000 7% Property Tax $ 19,858,530 $ 20,157,153 $ 20,781,387 $ 20,746,387 $ (35,000) 0% Transient Occupancy Tax $ 6,960,035 $ 9,051,000 $ 7,753,000 $ 8,636,000 $ 883,000 11% Business Tax $ 2,937,176 $ 2,832,000 $ 2,547,000 $ 2,889,000 $ 342,000 13% Cannabis Tax $ 844,939 $ 1,000,000 $ 1,500,000 $ 1,400,000 $ (100,000) -7% Franchise Fees $ 1,796,829 $ 1,575,000 $ 1,606,000 $ 1,606,000 $ - 0% Gas Tax (SB1) $ 851,292 $ 915,000 $ 941,535 $ 1,049,877 $ 108,342 12% Safety Prop 172 $ 425,136 $ 493,000 $ 339,000 $ 497,000 $ 158,000 47% Utility User Tax $ 5,225,979 $ 5,383,000 $ 5,565,000 $ 5,544,000 $ (21,000) 0% Development Review $ 7,094,935 $ 6,820,055 $ 6,864,650 $ 5,917,618 $ (947,032) -14% Parks & Recreation $ 1,616,010 $ 1,615,555 $ 2,039,215 $ 1,978,920 $ (60,295) -3% Fire $ 1,500,759 $ 1,440,260 $ 1,422,086 $ 1,576,322 $ 154,236 11% Police $ 600,406 $ 616,440 $ 637,196 $ 632,325 $ (4,871) -1% General Government $ 1,890,201 $ 1,721,726 $ 2,099,853 $ 1,668,952 $ (460,000) -22% Grants & Subventions $ 3,114,368 $ 1,204,196 $ 900,000 $ 587,328 $ (312,672) -35% ARPA $ 6,782,234 $ 4,465,000 $ 6,782,234 $ 2,317,234 52% Total $ 87,564,049 $ 108,207,399 $ 103,748,922 $ 110,349,963 $ 6,571,942 6% 2021-23 Financial Plan
Budget Document Pg. 16
General Fund
inventory, high demand, and still record low interest rates. The pandemic also allowed residents in highcost urban cores to migrate to lower density, more affordable regionsfor remote work. This phenomenon had a cascading effect throughout the nation, and San Luis Obispo experiences an exceptionally strong real estate market. As the Fed begins to raise interest rates throughout 2022, home sales are expected to decrease as buyers will experience diminishing purchasing power in the housing market. Similar to the Sales Tax forecast, staff expect a weakening in property tax growth back to two to three percent annually.
Transient Occupancy Tax (TOT): Tourism along the central coast made a strong comeback as the region reopened and benefited from being a drive-to destination. Monthly TOT receipts continue to reach all-time highs largely driven by high room rates; a trend that is expected to continue through the end of FY 2021- 22 as events like the Cal Poly graduation return to in-person. However, as inflation and gas prices increase and pent-up demand declines, the City expects to see a growth plateau and a possible decline over the next 12 months. Interestingly, when looking at the Smith Travel report data, the premier tracking source of lodging data, the region’s average daily rate (ADR) sky-rocketed, but its occupancy rate (the number of rooms booked) has actually declined. Although, it is hard to analyze the direct correlation between the two, since the room inventory in San Luis Obispo has increased, the data indicates that the increased rates are at the core driver of overall revenue growth. The long-term forecast assumes a decline in FY 2022-23 followed by modest growth in the outer years. This revenue stream will be closely monitored based on national, state, and regional travel trends.
Utility User Tax (UUT): Historically, UUT revenue has grown at a slower pace than other major tax revenues. Additionally, new regulations brought on by the Federal Communications Commission and the California Public Utilities Commission, as well as legal challenges, continue to disrupt the landscape for the revenue and staff continues to evaluate possible changes to the Municipal Code to maximize UUT.
The City does expect UUT revenue to increase in FY 2022-23 due to general increases in utility costs and diligent collection of late fees and penalties.
Cannabis Tax: Since April 2021, the monthly cannabis tax revenue collected has stayed very consistent.
This suggests that demand for cannabis retail is relatively stable and unlikely to decrease. The City’s second retail operator opened at the end of March and a non-retail storefront operator may open before the end of FY2021-22. While the new businesses will lead to additional cannabis revenue, staff expect some cannibalization to partially offset the new revenue. Staff expects to come to the City Council in Summer 2022 with proposed ordinance changes and recommend putting in place the framework for selecting an applicant for the third available retail permit.
Development Review: Based on data as of the third quarter in FY 2021-22, Development Review revenues were 11 percent below the projections included in the 21-23 Financial Plan. Although Development Review revenues tend to be “lumpy” (meaning large projects with high fees have a high influence on total revenue collection),staff expect a significant revenue shortfall of approximately 15 percent ($1M) in 2021-
22. Due to the shortfall, staff conducted a revenue analysis and adjusted the 2022-23 budget downwards for several reasons:
• Reduced revenues in planning and zoning are a result of fewer planning applications and building permits across all development types from the peak that occurred in FY 2019-20. Updates to the City’s Zoning Regulations in 2018 and again in 2021 included substantial efforts to streamline the City’s discretionary approval processes. These efforts are working, resulting in fewer planning Budget Document Pg. 17
General Fund
applications overall, and a shift towards applications for “Director’s Action” rather than Minor or Major Use Permits.
• The total number of building permits has been trending down. The reduction is not centered in any one sector, although staff has heard anecdotally that challenges created by COVID-19 with respect to supply chain and workforce constraints as well as a raising interest rate environment has played a role. Looking forward, inflation and increased interest rates may continue to slow growth in building permits as market uncertainty plagues investor confidence. However, there are many large projects with high construction values in the permit process. This includes two hotels, several mixed-use projects, a Porsche and Tesla auto dealership, and new housing tracts.
Although Development Review Fees are designed to recover 100% of staff costs, the City will be embarking on a comprehensive fee study in FY 2023-24 to ensure that development application costs are fully covered by fees. Additionally, not all of the work assigned to Community Development is under cost recovery or otherwise offset by revenues. As the City’s Housing Program expands and zoning regulations change, a lot of the policy workload in the department has shifted away from being fee-reimbursed and must be covered by general government revenue (tax and franchise fee revenue). Balancing policy initiatives with fee recovered work will be closely monitored so that both current and long-range planning efforts stay in balance.
Other Department Revenue (Parks & Rec, Fire, Police): Overall, fee-generating department programs are now operating at the level projected, and budgets have been adjusted to account for the policy increase by CPI which stood at 7.9% at the end of April (Resolution 11026, June 2019).
General Government/Subventions and Grants: General government and grant revenues fluctuate from year-to-year based on availability and award success. The City only budgets for grants or subventions that are highly likely to be received, but the budget is adjusted throughout the year if additional revenue is secured.
Budget Document Pg. 18
General Fund
Expenditures
While the City treaded very conservatively over the last two years, the trends are showing that revenue has largely returned to it is more predictable ebbs and flows and the financial forecast has improved, though new uncertainty injected by hyperinflation and labor and supply chain issues will be closely monitored and will be discussed in the quarterly reports to the City Council. Table G2 below shows the total expenditures for the General Fund by type and department. While the expenditure budget has increased significantly, it is important to note that this is primarily due to the increased cost of providing the services adopted in the budget, as well as changes made at the 2021-22 Mid-Year review (see page 23 – Significant Changes from Financial Plan Adoption).
Because of the already ambitious Major City Goal work programs and existing department objectives, departments were instructed to only submit mission critical Significant Operating Budget Changes (SOBCs). This methodology is also consistent with the City’s two-year financial planning policies.
Table G2: General Fund Expenditures by type
*The 2021-22 Budget includes encumbrances from the prior year and the “staffing” line includes the $10.2 million additional down payment to CalPERS hence the significant drop in budget from FY 21-22 to FY 22-23.
Table G3: General Fund Expenditures by Department
*Includes equity adjustments and COLA parameters for the entire general fund that were approved by Council for MME, SLOCEA, and CONF employee groups.
Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change % Change
Staffing $ 53,829,187 $ 71,379,892 $ 62,936,199 $ 66,250,502 $ 3,314,303 5% Other Operating Costs $ 8,501,284 $ 10,151,572 $ 9,157,105 $ 9,057,952 $ (99,153) -1% Contract Services $ 6,415,153 $ 10,761,626 $ 7,483,692 $ 7,816,094 $ 332,402 4% Grand Total $ 68,745,623 $ 92,293,090 $ 79,576,996 $ 83,124,548 $ 3,547,551 4% 2021-23 Financial Plan
Department 20-21 Actuals 21-22 Budget 22-23 Original
Budget
22-23 Revised
Budget Change % Change
Public Safety
Police $ 17,618,498 $ 22,842,870 $ 20,066,744 $ 20,866,264 $ 799,520 4% Fire $ 14,024,822 $ 17,103,242 $ 14,440,373 $ 14,515,112 $ 74,739 1% Community Services Group
CSG Administration $ 315,986 $ 851,684 $ 575,274 $ 573,066 $ (2,207) 0% CDD $ 6,509,806 $ 8,871,312 $ 6,841,955 $ 6,783,059 $ (58,896) -1% Parks and Rec $ 4,038,719 $ 5,779,681 $ 5,335,040 $ 5,251,052 $ (83,988) -2% Public Works $ 12,660,253 $ 17,162,531 $ 15,156,004 $ 16,144,599 $ 988,595 7% Solid Waste $ 121,078 $ 355,478 $ 176,280 $ 317,456 $ 141,176 80% Internal Services
Administration $ 7,805,012 $ 11,327,879 $ 9,805,269 $ 10,453,389 $ 648,120 7% City Attorney $ 964,100 $ 1,690,991 $ 1,043,562 $ 1,305,660 $ 262,097 25% Finance $ 1,795,348 $ 2,559,079 $ 2,291,343 $ 2,317,013 $ 25,670 1% Human Resources $ 1,374,481 $ 2,011,411 $ 1,683,223 $ 1,684,948 $ 1,725 0% Non-Departmental* $ 1,517,519 $ 1,736,930 $ 2,161,928 $ 2,912,928 $ 751,000 35% Total $ 68,745,623 $ 92,293,090 $ 79,576,996 $ 83,124,548 $ 3,547,551 4% 2021-23 Financial Plan
Budget Document Pg. 19
General Fund
Staffing
The majority of the 2022-23 budget changes are due to adjusted employee compensation. At the time the City re-forecasted its revenue projections, it was also finalizing a Benchmark Compensation Report for the San Luis Obispo City Employees’ Association (SLOCEA) and Unrepresented Management and Confidential Bargaining Units. It had already become clear that there was a market wage and benefit imbalance due to the turnover and attraction challenges that the City was facing and the compensation study confirmed this initial presumption. Overall, the City’s base salaries compared to other surveyed employers were on average, 8.55% below the median. The City Council approved wage and benefit changes for unrepresented and confidential employees on April 19, 2022 to provide competitive compensation in line with the City’s compensation philosophy.
In order to continue to attract and retain talented, qualified, and experienced employees who provide quality public services that the community expects, the City would need to prioritize competitive compensation. The increases in General Fund tax revenue allowed Council to quickly address this need and shortly after mid-year, the Council approved negotiation parameters for equity adjustments and cost of living increases which are now included in the 2022-23 Supplemental Budget. The updated budget also includes previously negotiated staffing increases in Police and Fire.
In addition to the wage increases, Council also approved 15 new FTEs with the mid-year review. These position were tied to increased demand for services, enlarging scope of services such as the City’s role in homelessness, housing, and other community focused services.
Other Operating Costs
Though other operating costs appear to have decreased by about 1%, this is due to a transfer of the Public Safety Equipment budget into a separate sub-fund (see page. 32). Overall, this expenditure category increased by about $150,000 due to the rising cost of utilities and several adjustmentsthat were approved with the 2021-22 Mid-year Review (linked above).
Contract Services
Contract services increased by about 6% due to adjustments approved at mid-year for two main reasons:
1. Council approved about $200,000 for temporary office leasing and equipment while staff develop a long-term solution to make space for a significant number of new employees that were added with the Financial Plan. The hybrid work-from-home model has allowed for some flexibility, but more and more staff are returning to the physical office now that COVID-19 restrictions have been lifted.
2. Council approved approximately $250,000 in additional ongoing budget for the maintenance of City parks and streets (pruning, pressure washing, downtown maintenance).
Budget Document Pg. 20
General Fund
Significant Operating Budget Changes
Table G4: General Fund Operating Budget Changes FY 2022-23 Budget
1. Capital Maintenance Supervisor - 1 FTE (Ongoing) $ 128,170 Staff is recommending the addition of 1.00 FTE Capital Maintenance Supervisor (a new classification) to oversee critical Public Works programs including streetlights and signals, urban forestry, and maintenance contracts. The new position will increase the capacity of existing staff to supplement the efforts of the CIP Engineering group to oversee the many projects included in the City’s CIP. This position will be funded through the Local Revenue Measure and out of the $1,000,000 set aside for CIP Delivery Augmentation.
2. Developer Funds for Tree Planting (One-time) $ 18,225 The City received $18,225 from a developer in fiscal year 2021-22 for new tree planting. This money was not used before the end of the fiscal year and thus went toward fund balance. The City received these funds for the specific purpose of mitigating the removal of 50 trees by planting 100 new trees per City policy. This request would reallocate the $18,225 from fund balance to the Urban Forest Cost Center's Other Contract Services account to purchase and plant the trees in 2022-23.
3. City Employee Parking (Ongoing) $ 49,928
The City has maintained a $30,000 employee parking budget for the last five years. Actual costs have exceeded the budget for the last two years but were offset by savings elsewhere. This request will bring the budget to the level it needs to be considering the current cost of parking permits and employees that utilize the parking.
4. Housing Element Funding now reimbursable by grant funding (One-time) ($115,000) The total amount of $255,000 was approved at the start of the Financial Plan for consultant support to complete four specific Housing Element Programs ($140k in FY22 and $115k in FY23). This includes updating our Inclusionary Housing Ordinance, Missing Middle Housing and Subdivision Regulations. A reimbursable grant for the Inclusionary Housing Ordinance was received and approximately $120,000 was dedicated to that effort; therefore, part of initial budget for this effort can be removed.
5. Contingency for over-hires (Ongoing) $ 100,000
Historically, the City hasn't included a budget for over-hires (hiring for an expected vacancy before it is vacant), but given the current labor market, this would be a prudent move in order to get positions filled and ensure knowledge transfer and retention. This SOBC is listed as ongoing but it will be evaluated with the 2023-25 Financial Plan to determine if still necessary.
6. Solid Waste Staffing - 1 FTE (Revenue offset) (Ongoing) $ 134,058 This request is to allocate funding to salaries in preparation for an additional FTE in the Solid Waste and Recycling program. As the program continues to expand, inclusive of SB 1383 compliance and oversight, additional resources are necessary. The cost of the new FTE will be 100% covered by the increase in revenue projected from AB939 and franchise fees. For more detail on the Solid Waste program and this request, see the Utilities section (pg. 40)
7. Contract Administrative Analyst (One-time) $ 48,000
Due to a leave of absence in the Utilities department, the City hired a contract analyst in March 2022 to assist with workload (funded by Water and Sewer). Staff would like to fund the position for an additional six months once the leave of absence in Utilities is over (Summer 2022). This position will help with important one-time special projects and analytical work for the Community Services Departments.
TOTAL $ 363,381
Budget Document Pg. 21
General Fund
Long Term Forecast
The long-term forecast is an essential planning tool for the City, and its ongoing service delivery. While the City adopts a two-year Financial Plan that must be balanced, the outer years of the forecast are presented to show the City’s financial condition and availability of resources into the future. The forecast is updated every six months which gives staff the opportunity to alert Council of looming imbalances and strategize appropriate actions to be taken. As the current forecast outlines, the City will have to be diligent in holding the course and assign is resources prudently.
Key Takeaways
Overall, the General fund is in a good financial condition and remains balanced throughout the five-year forecast. Current assumptions are conservatively optimistic, and the forecast does not assume a recession only a cooling of current economic activity. The impacts of high inflation on the City’s forecast are still unclear and a looming concern is that the cost of providing services will outpace revenue growth. Another important note is that the forecast assumes carryover, meaning that year-end balances are left untouched and remain in fund balance to protect the financial condition in the outer years. Fund balance does increase in FY 2023-24 after the removal of one-time budget allocations for the 2021-23 Major City Goals but is used in the outer years of the forecast as available revenue and required expenditure budget begin to inch closer (See line 34 in Forecast on the next page).
Outer Year Expenditure Assumptions (FY 2023-24 through FY 2025-26) • Negotiated staffing increases and approved parameters for SLOCEA are included. • Assumed annual 3% increase in non-staffing operating costs. • One-time budget allocations from the 2021-23 Financial Plan are removed. • Cost Allocation Plan (CAP) and Cost of Services transfers inflated proportionally to General Fund budget increases.
• Reserve maintained at 20% of operating costs (policy requirement). • An annual $2 million additional down payment to CalPERs in order to achieve a 20-year paydown goal.
• $3 million set aside in a 115 Pension Trust Fund to protect the City from further changes by CalPERS.
• Continued investment into the Capital Improvement Plan (see Capital Section pg 78) Budget Document Pg. 22
General Fund
In Thousands Actual
2020-21
Budget
2021-22
Budget
2022-23
Projected
2023-24
Projected
2024-25
Projected
2025-26
Tax & Franchise Revenue
1 Sales & Use Tax 33,273 47,093 49,335 50,561 51,567 52,593 2 Sales Tax General 20,068 20,791 21,789 22,333 22,780 23,236 3 Public Safety (Prop 172) 425 493 497 502 507 512
4 Measure G20 12,780 25,810 27,049 27,725 28,280 28,845 5 Property Tax 19,859 20,157 20,746 21,369 22,010 22,670 6 Transient Occupancy Tax 6,960 9,051 8,636 8,809 8,985 9,165 7 Utility Users Tax 5,226 5,383 5,544 5,655 5,768 5,883 8 Franchise Fees 1,797 1,575 1,606 1,638 1,671 1,704
9 Business Tax Certificates 2,937 2,832 2,889 2,946 3,005 3,065 10 Cannabis Tax 845 1,000 1,400 1,650 1,683 1,717
11 Total Tax & Franchise Revenue $ 70,896 $ 87,092 $ 90,156 $ 92,627 $ 94,689 $ 96,797 12 Fees for Service & Other Revenue
13 Police Services 599 610 632 651 664 678
14 Fire Services 1,501 1,421 1,576 1,624 1,656 1,689
15 Development Review 7,174 6,551 5,918 6,095 6,278 6,466 16 Parks & Recreation 1,616 1,616 1,979 2,018 2,059 2,100 17 General Government 442 438 446 459 468 478
18 Cannabis 90 157 210 216 223 229
19 Other Revenues 2,126 1,886 2,063 2,106 2,134 2,162
20 Subventions & Grants 3,201 477 587 440 440 440
21 Federal Stimulus Funding 6,782 6,782
22 Total Fees & Other Revenue $ 16,749 $ 19,937 $ 20,194 $ 13,610 $ 13,922 $ 14,243 23 Total Revenue $ 87,646 $ 107,029 $ 110,349 $ 106,237 $ 108,611 $ 111,040 Use of Funds
24 Staffing 53,829 $ 57,774 $ 64,618 $ 66,424 $ 68,723 $ 70,827 25 Contract Services 6,415 $ 8,740 $ 7,816 $ 6,485 $ 6,679 $ 6,946 26 Other Operating Expenditures 13,302 $ 8,913 $ 9,058 $ 9,278 $ 9,369 $ 9,650 27 Cost Allocation (4,578) $ (4,717) $ (4,462) $ (4,819) $ (4,963) $ (5,112) 28 Total Operating Expenditure $ 68,968 $ 70,709 $ 77,031 $ 77,369 $ 79,809 $ 82,312 29 Debt Service 2,541 $ 1,997 $ 1,992 $ 2,000 $ 2,000 $ 2,000 30 Capital 6,999 $ 28,531 $ 25,632 $ 24,299 $ 24,801 $ 25,265 31 Transfers Out 617 $ 495 $ 296 $ 449 $ 635 $ 831
32 Total Expenditure $ 79,125 $ 101,731 $ 104,950 $ 104,117 $ 107,245 $ 110,407 33 Beginning Fund Balance $ 33,798 $ 32,118 $ 30,067 $ 29,801 $ 29,922 $ 29,288 34 Revenue Over/(Under) Expenses $ 8,520 $ 5,298 $ 5,399 $ 2,121 $ 1,366 $ 633 35 Ending Fund Balance $ 42,318 $ 37,416 $ 35,466 $ 31,922 $ 31,288 $ 29,921 36 CalPERS Downpayments (10,200) (2,000) (2,000) (2,000) (2,000) (2,000) 37 ARPA Allocations (see note 1) (3,664)
38 Carryover/encumbrances from FY21 (5,349)
39 Ending Fund Balance $ 32,118 $ 30,067 $ 29,801 $ 29,922 $ 29,288 $ 27,921 40 Policy Reserve Level - 20% 11,830 12,014 13,035 12,928 13,260 13,669 41 115 Pension Trust Fund 2,000 2,000 3,000 3,000 3,000 3,000 42 Restricted based on Audit 17,776 13,958 13,465 11,000 11,000 11,000 43 Undesignated Fund Balance $ 512 $ 2,095 $ 301 $ 2,994 $ 2,028 $ 252 Table G-5: GENERAL FUND LONG TERM FORECAST
Revised with Supplement
Note 1: ARPA allocations as recommended by the ad-hoc committee: $2.9M affordable housing; $600,000 Broadband coverage; $100,000 Grants-in-aid.
Budget Document Pg. 23
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget 22‐23 OriginalBudget 22‐23 Revised
Budget Change % Change
1 Administration $ 7,805,012 $ 11,327,879 $ 9,805,269 $ 10,453,389 $ 648,120 7% 2 Administration $ 1,115,952 $ 1,670,286 $ 1,314,380 $ 1,374,415 $ 60,035 5% 3 Staffing $ 878,527 $ 1,261,115 $ 1,148,180 $ 1,193,995 $ 45,815 4% 4 Other Operating Costs $ 30,981 $ 96,800 $ 45,200 $ 54,520 $ 9,320 21% 5 Contract Services $ 206,444 $ 312,371 $ 121,000 $ 125,900 $ 4,900 4% 6 City Clerk $ 567,513 $ 676,553 $ 657,638 $ 704,704 $ 47,065 7% 7 Staffing $ 416,383 $ 511,958 $ 457,293 $ 498,159 $ 40,865 9% 8 Other Operating Costs $ 15,737 $ 53,180 $ 49,345 $ 49,345 $ ‐ 0% 9 Contract Services $ 135,392 $ 111,414 $ 151,000 $ 157,200 $ 6,200 4% 10 City Council $ 173,273 $ 241,611 $ 216,352 $ 221,756 $ 5,405 2% 11 Staffing $ 159,005 $ 210,861 $ 186,952 $ 192,356 $ 5,405 3% 12 Other Operating Costs $ 9,930 $ 29,449 $ 29,400 $ 29,400 $ ‐ 0% 13 Contract Services $ 4,339 $ 1,301 $ ‐ $ ‐ $ ‐ 14 Community Promotion $ 417,721 $ 444,088 $ 405,826 $ 405,609 $ (217) 0% 15 Staffing $ 37,639 $ 44,275 $ 38,826 $ 38,609 $ (217) ‐1% 16 Other Operating Costs $ 7,150 $ 53,427 $ 39,000 $ 39,000 $ ‐ 0% 17 Contract Services $ 372,931 $ 346,386 $ 328,000 $ 328,000 $ ‐ 0% 18 Cultural Activities $ 332,351 $ 347,632 $ 357,963 $ 357,963 $ ‐ 0% 19 Other Operating Costs $ ‐ $ 3,250 $ 3,250 $ 3,250 $ ‐ 0% 20 Contract Services $ 332,351 $ 344,382 $ 354,713 $ 354,713 $ ‐ 0% 21 Economic Dev $ 588,878 $ 1,245,541 $ 907,271 $ 906,219 $ (1,051) 0% 22 Staffing $ 172,391 $ 217,118 $ 184,621 $ 183,569 $ (1,051) ‐1% 23 Other Operating Costs $ 10,606 $ 37,650 $ 27,650 $ 27,650 $ ‐ 0% 24 Contract Services $ 405,881 $ 990,773 $ 695,000 $ 695,000 $ ‐ 0% 25 Information Services $ 1,105,991 $ 1,446,942 $ 1,290,790 $ 1,277,224 $ (13,566) ‐1% 26 Staffing $ 1,007,912 $ 1,364,042 $ 1,207,890 $ 1,194,324 $ (13,566) ‐1% 27 Other Operating Costs $ 96,166 $ 71,500 $ 71,500 $ 71,500 $ ‐ 0% 28 Contract Services $ 1,913 $ 11,400 $ 11,400 $ 11,400 $ ‐ 0% 29 Natural Resource Protection $ 646,613 $ 1,235,729 $ 791,226 $ 814,543 $ 23,317 3% 30 Staffing $ 484,679 $ 709,349 $ 617,767 $ 641,084 $ 23,317 4% 31 Other Operating Costs $ 101,125 $ 87,834 $ 73,459 $ 73,459 $ ‐ 0% 32 Contract Services $ 60,809 $ 438,545 $ 100,000 $ 100,000 $ ‐ 0% 33 Network Services $ 2,856,721 $ 3,485,098 $ 3,261,983 $ 3,502,642 $ 240,660 7% 34 Staffing $ 1,069,069 $ 1,351,358 $ 1,277,990 $ 1,321,609 $ 43,620 3% 35 Other Operating Costs $ 1,338,327 $ 1,600,271 $ 1,540,014 $ 1,540,014 $ ‐ 0% 36 Contract Services $ 449,325 $ 533,469 $ 443,979 $ 641,019 $ 197,040 44% 37 Office of Diversity, Equity, Inclusion $ ‐ $ 534,399 $ 601,841 $ 888,313 $ 286,472 48% 38 Staffing $ ‐ $ 184,399 $ 165,341 $ 326,813 $ 161,472 98% 39 Other Operating Costs $ ‐ $ 59,000 $ 59,000 $ 64,000 $ 5,000 8% 40 Contract Services $ ‐ $ 291,000 $ 377,500 $ 497,500 $ 120,000 32% 41 City Attorney $ 964,100 $ 1,690,991 $ 1,043,562 $ 1,305,660 $ 262,097 25% 42 City Attorney $ 964,100 $ 1,690,991 $ 1,043,562 $ 1,305,660 $ 262,097 25% 43 Staffing $ 836,951 $ 1,263,898 $ 992,802 $ 1,217,800 $ 224,997 23% 44 Other Operating Costs $ 97,965 $ 330,794 $ 19,365 $ 24,465 $ 5,100 26% 45 Contract Services $ 29,185 $ 96,299 $ 31,395 $ 63,395 $ 32,000 102% 46 Community Development $ 6,509,806 $ 8,871,312 $ 6,841,955 $ 6,783,059 $ (58,896) ‐1% 47 Building and Safety $ 2,506,262 $ 3,283,056 $ 2,321,228 $ 2,133,870 $ (187,358) ‐8% 48 Staffing $ 1,321,670 $ 2,086,812 $ 1,973,054 $ 2,015,696 $ 42,642 2% 49 Other Operating Costs $ 476,449 $ 611,244 $ 83,174 $ 83,174 $ ‐ 0% 50 Contract Services $ 708,142 $ 585,000 $ 265,000 $ 35,000 $ (230,000) ‐87% 51 Commissions and Committees $ 15,291 $ 34,939 $ 34,939 $ 34,948 $ 0% 9 52 Staffing $ 15,141 $ 23,739 $ 23,739 $ 23,748 $ 0% 9 53 Other Operating Costs $ 150 $ 11,200 $ 11,200 $ 11,200 $ ‐ 0% 54 Community Dev Admin $ 901,725 $ 1,144,375 $ 917,631 $ 968,991 $ 51,360 6% 55 Staffing $ 697,490 $ 767,665 $ 678,771 $ 653,411 $ (25,360) ‐4% 2021‐23 Financial Plan
General Fund
Budget Document Pg. 24
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget 22‐23 OriginalBudget 22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
56 Other Operating Costs $ 204,235 $ 193,110 $ 185,260 $ 221,980 $ 36,720 20% 57 Contract Services $ ‐ $ 183,600 $ 53,600 $ 93,600 $ 40,000 75% 58 Engineering $ ‐ $ 783,878 $ 688,625 $ 839,745 $ 151,120 22% 59 Staffing $ ‐ $ 713,378 $ 618,125 $ 769,245 $ 151,120 24% 60 Other Operating Costs $ ‐ $ 13,500 $ 13,500 $ 13,500 $ ‐ 0% 61 Contract Services $ ‐ $ 57,000 $ 57,000 $ 57,000 $ ‐ 0% 62 Housing Policy and Programs $ ‐ $ 1,154,044 $ 941,144 $ 950,332 $ 9,188 1% 63 Staffing $ ‐ $ 527,085 $ 443,318 $ 602,506 $ 159,188 36% 64 Other Operating Costs $ ‐ $ 10,000 $ 10,000 $ 10,000 $ ‐ 0% 65 Contract Services $ ‐ $ 616,959 $ 487,826 $ 337,826 $ (150,000) ‐31% 66 Human Relations $ 579,489 $ 66,045 $ 5,000 $ ‐ $ (5,000) ‐100% 67 Other Operating Costs $ ‐ $ 3,000 $ 5,000 $ ‐ $ (5,000) ‐100% 68 Contract Services $ 579,489 $ 63,045 $ ‐ $ ‐ $ ‐ 69 Planning $ 2,507,040 $ 2,404,974 $ 1,933,388 $ 1,855,172 $ (78,215) ‐4% 70 Staffing $ 2,068,912 $ 1,681,166 $ 1,616,517 $ 1,423,301 $ (193,215) ‐12% 71 Other Operating Costs $ 7,914 $ 35,200 $ 35,200 $ 35,200 $ ‐ 0% 72 Contract Services $ 430,214 $ 688,608 $ 281,671 $ 396,671 $ 115,000 41% 73 CSG Administration $ 315,986 $ 851,684 $ 575,274 $ 573,066 $ (2,207) 0% 74 Community Services Group $ 315,986 $ 851,684 $ 575,274 $ 573,066 $ (2,207) 0% 75 Staffing $ 300,686 $ 610,324 $ 560,440 $ 517,213 $ (43,228) ‐8% 76 Other Operating Costs $ 3,554 $ 12,413 $ 12,000 $ 13,021 $ 1,021 9% 77 Contract Services $ 11,745 $ 228,948 $ 2,833 $ 42,833 $ 40,000 1412% 78 Finance $ 1,795,348 $ 2,559,079 $ 2,291,343 $ 2,317,013 $ 25,670 1% 79 Accounting $ 710,210 $ 969,640 $ 932,335 $ 898,785 $ (33,550) ‐4% 80 Staffing $ 572,059 $ 794,619 $ 762,215 $ 728,665 $ (33,550) ‐4% 81 Other Operating Costs $ 2,290 $ 10,218 $ 10,100 $ 10,100 $ ‐ 0% 82 Contract Services $ 135,861 $ 164,803 $ 160,020 $ 160,020 $ ‐ 0% 83 Budgets $ 190,579 $ 208,648 $ 185,543 $ 173,883 $ (11,660) ‐6% 84 Staffing $ 163,319 $ 179,756 $ 161,043 $ 142,383 $ (18,660) ‐12% 85 Other Operating Costs $ 518 $ 2,500 $ 2,500 $ 9,500 $ 7,000 280% 86 Contract Services $ 26,743 $ 26,392 $ 22,000 $ 22,000 $ ‐ 0% 87 Financial Admin $ 482,451 $ 622,367 $ 492,334 $ 557,524 $ 65,190 13% 88 Staffing $ 464,588 $ 549,977 $ 459,234 $ 524,884 $ 65,650 14% 89 Other Operating Costs $ 4,086 $ 20,600 $ 20,600 $ 22,640 $ 2,040 10% 90 Contract Services $ 13,777 $ 51,791 $ 12,500 $ 10,000 $ (2,500) ‐20% 91 Purchasing $ 132,221 $ 264,692 $ 236,398 $ 218,874 $ (17,525) ‐7% 92 Staffing $ 118,270 $ 242,232 $ 218,188 $ 198,164 $ (20,025) ‐9% 93 Other Operating Costs $ 1,880 $ 4,500 $ 4,500 $ 4,500 $ ‐ 0% 94 Contract Services $ 12,072 $ 17,960 $ 13,710 $ 16,210 $ 2,500 18% 95 Revenue Mgmt $ 279,887 $ 493,732 $ 444,732 $ 467,947 $ 23,215 5% 96 Staffing $ 196,720 $ 328,352 $ 264,792 $ 288,007 $ 23,215 9% 97 Other Operating Costs $ 6,398 $ 16,200 $ 16,200 $ 16,200 $ ‐ 0% 98 Contract Services $ 76,769 $ 149,181 $ 163,740 $ 163,740 $ ‐ 0% 99 Fire $ 14,024,822 $ 17,103,242 $ 14,440,373 $ 14,515,112 $ 74,739 1% 100 Emergency Management $ 38,550 $ 92,048 $ 37,175 $ 180,217 $ 143,042 385% 101 Staffing $ ‐ $ 35,696 $ 3,360 $ 146,402 $ 143,042 4257% 102 Other Operating Costs $ 22,559 $ 13,458 $ 3,815 $ 3,815 $ ‐ 0% 103 Contract Services $ 15,991 $ 42,894 $ 30,000 $ 30,000 $ ‐ 0% 104 Emergency Response $ 11,494,300 $ 13,586,646 $ 11,073,299 $ 11,419,286 $ 345,987 3% 105 Staffing $ 11,371,826 $ 13,422,698 $ 10,921,531 $ 11,267,518 $ 345,987 3% 106 Other Operating Costs $ 113,636 $ 147,936 $ 135,593 $ 135,593 $ ‐ 0% 107 Contract Services $ 8,838 $ 16,012 $ 16,175 $ 16,175 $ ‐ 0% 108 Fire Admin $ 1,258,603 $ 1,249,968 $ 1,233,678 $ 1,057,173 $ (176,504) ‐14% 109 Staffing $ 953,613 $ 1,035,766 $ 843,017 $ 844,011 $ 995 0% 110 Other Operating Costs $ 298,431 $ 208,223 $ 385,111 $ 207,612 $ (177,499) ‐46% 111 Contract Services $ 6,558 $ 5,979 $ 5,550 $ 5,550 $ ‐ 0% General Fund
Budget Document Pg. 25
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget 22‐23 OriginalBudget 22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
112 Fire Apparatus Services $ 377,035 $ 528,761 $ 474,223 $ 466,131 $ (8,092) ‐2% 113 Staffing $ 222,771 $ 319,878 $ 267,650 $ 259,558 $ (8,092) ‐3% 114 Other Operating Costs $ 145,250 $ 183,491 $ 179,338 $ 179,338 $ ‐ 0% 115 Contract Services $ 9,014 $ 25,392 $ 27,235 $ 27,235 $ ‐ 0% 116 Fire Station Facility Support $ 38,314 $ 45,418 $ 42,305 $ 41,675 $ (630) ‐1% 117 Staffing $ ‐ $ ‐ $ 630 $ ‐ $ (630) ‐100% 118 Other Operating Costs $ 22,343 $ 38,968 $ 28,875 $ 28,875 $ ‐ 0% 119 Contract Services $ 15,971 $ 6,450 $ 12,800 $ 12,800 $ ‐ 0% 120 Hazard Prevention $ 735,525 $ 1,027,329 $ 898,617 $ 915,290 $ 16,673 2% 121 Staffing $ 651,818 $ 951,818 $ 828,275 $ 844,948 $ 16,673 2% 122 Other Operating Costs $ 64,631 $ 69,768 $ 68,842 $ 68,842 $ ‐ 0% 123 Contract Services $ 19,076 $ 5,743 $ 1,500 $ 1,500 $ ‐ 0% 124 Mobile Crisis Unit $ ‐ $ 269,000 $ 300,000 $ 314,190 $ 314,190 5% 125 Staffing $ ‐ $ 91,612 $ 95,014 $ 109,204 $ 109,204 15% 126 Other Operating Costs $ ‐ $ 72,053 $ 99,651 $ 79,314 $ 79,314 ‐20% 127 Contract Services $ ‐ $ 105,335 $ 105,335 $ 125,672 $ 125,672 19% 128 Recruit Academy $ ‐ $ 120,300 $ ‐ $ ‐ $ ‐ 0% 129 Staffing $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ 0%
130 Other Operating Costs $ ‐ $ 102,300 $ ‐ $ ‐ $ ‐ 0% 131 Contract Services $ ‐ $ 18,000 $ ‐ $ ‐ $ ‐ 0% 132 Training Services $ 82,496 $ 183,773 $ 381,076 $ 121,150 $ (259,926) ‐68% 133 Staffing $ ‐ $ 52,346 $ 259,926 $ ‐ $ (259,926) ‐100% 134 Other Operating Costs $ 32,867 $ 83,545 $ 72,420 $ 72,420 $ ‐ 0% 135 Contract Services $ 49,629 $ 47,882 $ 48,730 $ 48,730 $ ‐ 0% 136 Human Resources $ 1,374,481 $ 2,011,411 $ 1,683,223 $ 1,684,948 $ 1,725 0% 137 Human Resources Admin $ 1,365,254 $ 1,993,161 $ 1,665,812 $ 1,667,537 $ 1,725 0% 138 Staffing $ 1,055,161 $ 1,415,874 $ 1,308,129 $ 1,309,854 $ 1,725 0% 139 Other Operating Costs $ 49,104 $ 50,063 $ 48,800 $ 48,800 $ ‐ 0% 140 Contract Services $ 260,989 $ 527,224 $ 308,883 $ 308,883 $ ‐ 0% 141 Wellness $ 9,226 $ 18,251 $ 17,411 $ 17,411 $ ‐ 0% 142 Other Operating Costs $ 1,688 $ 2,500 $ 2,500 $ 2,500 $ ‐ 0% 143 Contract Services $ 7,539 $ 15,751 $ 14,911 $ 14,911 $ ‐ 0% 144 Non‐Departmental $ 1,517,519 $ 1,736,930 $ 2,161,928 $ 2,912,928 $ 751,000 35% 145 Finance NonDepart $ 292,146 $ 1,569,473 $ 1,809,228 $ 2,593,228 $ 784,000 43% 146 Staffing $ 101,575 $ 1,499,473 $ 1,739,228 $ 2,513,228 $ 774,000 45% 147 Other Operating Costs $ 190,571 $ 70,000 $ 70,000 $ 80,000 $ 10,000 14% 148 Finance Support Services $ 1,225,373 $ 167,457 $ 352,700 $ 319,700 $ (33,000) ‐9% 149 Other Operating Costs $ 1,225,237 $ 167,457 $ 352,700 $ 319,700 $ (33,000) ‐9% 150 Contract Services $ 137 $ ‐ $ ‐ $ ‐ $ ‐
151 Parks and Recreation $ 4,038,719 $ 5,779,681 $ 5,335,040 $ 5,251,052 $ (83,988) ‐2% 152 Aquatics $ 579,746 $ 678,084 $ 624,832 $ 633,304 $ 8,472 1% 153 Staffing $ 516,123 $ 592,084 $ 538,033 $ 546,505 $ 8,472 2% 154 Other Operating Costs $ 25,030 $ 47,500 $ 47,500 $ 47,500 $ ‐ 0% 155 Contract Services $ 38,592 $ 38,500 $ 39,299 $ 39,299 $ ‐ 0% 156 Community Services $ 384,912 $ 744,552 $ 674,700 $ 657,382 $ (17,319) ‐3% 157 Staffing $ 323,079 $ 504,687 $ 443,890 $ 483,972 $ 40,081 9% 158 Other Operating Costs $ 28,596 $ 101,490 $ 107,210 $ 98,110 $ (9,100) ‐8% 159 Contract Services $ 33,237 $ 138,375 $ 123,600 $ 75,300 $ (48,300) ‐39% 160 Golf Course $ 599,587 $ 807,410 $ 721,608 $ 738,756 $ 17,148 2% 161 Staffing $ 402,896 $ 514,443 $ 462,650 $ 479,798 $ 17,148 4% 162 Other Operating Costs $ 170,705 $ 271,067 $ 237,245 $ 237,245 $ ‐ 0% 163 Contract Services $ 25,986 $ 21,900 $ 21,713 $ 21,713 $ ‐ 0% 164 Jack House $ ‐ $ 10,500 $ 10,500 $ 10,500 $ ‐ 0% 165 Other Operating Costs $ ‐ $ 10,500 $ 10,500 $ 10,500 $ ‐ 0% 166 Ranger Service $ 508,601 $ 927,415 $ 864,055 $ 826,321 $ (37,735) ‐4% 167 Staffing $ 443,446 $ 868,763 $ 805,275 $ 757,541 $ (47,735) ‐6% General Fund
Budget Document Pg. 26
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget 22‐23 OriginalBudget 22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
168 Other Operating Costs $ 22,444 $ 30,882 $ 26,380 $ 26,380 $ ‐ 0% 169 Contract Services $ 42,711 $ 27,770 $ 32,400 $ 42,400 $ 10,000 31% 170 Recreation Admin $ 759,597 $ 913,884 $ 797,183 $ 770,190 $ (26,993) ‐3% 171 Staffing $ 659,086 $ 800,596 $ 702,368 $ 673,135 $ (29,233) ‐4% 172 Other Operating Costs $ 11,620 $ 84,510 $ 79,560 $ 81,800 $ 2,240 3% 173 Contract Services $ 88,892 $ 28,777 $ 15,255 $ 15,255 $ ‐ 0% 174 Recreation Facilities $ 234,614 $ 308,533 $ 310,676 $ 325,907 $ 15,231 5% 175 Staffing $ 214,505 $ 290,518 $ 292,661 $ 271,892 $ (20,769) ‐7% 176 Other Operating Costs $ 7,833 $ 12,915 $ 12,915 $ 18,915 $ 6,000 46% 177 Contract Services $ 12,276 $ 5,100 $ 5,100 $ 35,100 $ 30,000 588% 178 Youth Services $ 971,662 $ 1,389,305 $ 1,331,486 $ 1,288,694 $ (42,792) ‐3% 179 Staffing $ 914,213 $ 1,226,328 $ 1,185,716 $ 1,142,924 $ (42,792) ‐4% 180 Other Operating Costs $ 44,817 $ 142,677 $ 125,470 $ 125,470 $ ‐ 0% 181 Contract Services $ 12,633 $ 20,300 $ 20,300 $ 20,300 $ ‐ 0% 182 Police $ 17,618,498 $ 22,842,870 $ 20,066,744 $ 20,866,264 $ 799,520 4% 183 Investigations $ 2,923,797 $ 4,119,381 $ 3,623,590 $ 3,521,262 $ (102,328) ‐3% 184 Staffing $ 2,898,386 $ 3,990,409 $ 3,484,598 $ 3,382,271 $ (102,328) ‐3% 185 Other Operating Costs $ 23,882 $ 29,100 $ 29,100 $ 29,100 $ ‐ 0% 186 Contract Services $ 1,529 $ 99,872 $ 109,892 $ 109,892 $ ‐ 0% 187 Neighborhood Services $ 228,265 $ 299,296 $ 277,062 $ 282,674 $ 5,612 2% 188 Staffing $ 191,784 $ 242,225 $ 221,662 $ 227,274 $ 5,612 3% 189 Other Operating Costs $ 21,268 $ 28,400 $ 28,400 $ 28,400 $ ‐ 0% 190 Contract Services $ 15,213 $ 28,671 $ 27,000 $ 27,000 $ ‐ 0% 191 Patrol $ 9,753,373 $ 11,474,557 $ 10,065,018 $ 10,684,397 $ 619,378 6% 192 Staffing $ 9,634,380 $ 11,289,495 $ 9,883,837 $ 10,561,497 $ 677,659 7% 193 Other Operating Costs $ 118,993 $ 185,061 $ 181,181 $ 122,900 $ (58,281) ‐32% 194 Contract Services $ ‐ $ ‐ $ ‐ $ ‐
195 Police Admin $ 1,469,923 $ 2,495,129 $ 2,171,555 $ 2,103,633 $ (67,922) ‐3% 196 Staffing $ 786,455 $ 1,492,652 $ 1,323,998 $ 1,246,076 $ (77,922) ‐6% 197 Other Operating Costs $ 267,205 $ 390,048 $ 318,790 $ 318,790 $ ‐ 0% 198 Contract Services $ 416,263 $ 612,429 $ 528,767 $ 538,767 $ 10,000 2% 199 Police Support Services $ 2,381,005 $ 3,420,512 $ 3,019,376 $ 3,198,032 $ 178,655 6% 200 Staffing $ 2,243,549 $ 3,189,365 $ 2,832,341 $ 2,998,997 $ 166,655 6% 201 Other Operating Costs $ 21,740 $ 45,912 $ 42,700 $ 42,700 $ ‐ 0% 202 Contract Services $ 115,716 $ 185,235 $ 144,335 $ 156,335 $ 12,000 8% 203 Traffic Safety $ 862,135 $ 1,033,995 $ 910,143 $ 1,076,266 $ 166,123 18% 204 Staffing $ 851,537 $ 997,791 $ 884,543 $ 1,050,666 $ 166,123 19% 205 Other Operating Costs $ 9,905 $ 27,268 $ 19,400 $ 19,400 $ ‐ 0% 206 Contract Services $ 693 $ 8,936 $ 6,200 $ 6,200 $ ‐ 0% 207 Public Works $ 12,660,253 $ 17,162,531 $ 15,156,004 $ 16,144,599 $ 988,595 7% 208 CIP Project Eng $ 2,269,244 $ 2,900,277 $ 2,221,737 $ 2,717,592 $ 495,854 22% 209 Staffing $ 2,179,185 $ 2,653,837 $ 2,074,736 $ 2,572,191 $ 497,454 24% 210 Other Operating Costs $ 76,241 $ 105,152 $ 122,501 $ 120,901 $ (1,600) ‐1% 211 Contract Services $ 13,818 $ 141,288 $ 24,500 $ 24,500 $ ‐ 0% 212 Facilities Maintenance $ 1,235,984 $ 1,525,747 $ 1,389,285 $ 1,375,065 $ (14,220) ‐1% 213 Staffing $ 628,462 $ 752,017 $ 667,785 $ 590,030 $ (77,755) ‐12% 214 Other Operating Costs $ 375,409 $ 502,508 $ 463,500 $ 502,035 $ 38,535 8% 215 Contract Services $ 232,113 $ 271,222 $ 258,000 $ 283,000 $ 25,000 10% 216 Fleet $ 1,011,969 $ 1,586,950 $ 1,389,493 $ 1,395,387 $ 5,894 0% 217 Staffing $ 479,063 $ 724,727 $ 643,393 $ 649,287 $ 5,894 1% 218 Other Operating Costs $ 454,862 $ 663,860 $ 585,800 $ 598,300 $ 12,500 2% 219 Contract Services $ 78,045 $ 198,363 $ 160,300 $ 147,800 $ (12,500) ‐8% 220 Parks Maint $ 2,926,353 $ 3,716,247 $ 3,399,785 $ 3,478,283 $ 78,498 2% 221 Staffing $ 1,182,262 $ 1,553,758 $ 1,372,385 $ 1,383,883 $ 11,498 1% 222 Other Operating Costs $ 1,177,785 $ 1,533,073 $ 1,447,400 $ 1,447,400 $ ‐ 0% 223 Contract Services $ 566,307 $ 629,415 $ 580,000 $ 647,000 $ 67,000 12% General Fund
Budget Document Pg. 27
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget 22‐23 OriginalBudget 22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
224 Public Works Admin $ 606,828 $ 1,068,079 $ 872,405 $ 1,089,021 $ 216,616 25% 225 Staffing $ 534,534 $ 953,906 $ 834,205 $ 1,044,634 $ 210,429 25% 226 Other Operating Costs $ 19,499 $ 46,801 $ 37,200 $ 42,888 $ 5,688 15% 227 Contract Services $ 52,795 $ 67,372 $ 1,000 $ 1,500 $ 500 50% 228 Stormwater and Flood Control $ 944,270 $ 1,257,484 $ 1,186,536 $ 1,083,704 $ (102,833) ‐9% 229 Staffing $ 708,203 $ 866,429 $ 849,680 $ 746,848 $ (102,833) ‐12% 230 Other Operating Costs $ 64,976 $ 94,840 $ 93,531 $ 93,531 $ ‐ 0% 231 Contract Services $ 171,091 $ 296,215 $ 243,325 $ 243,325 $ ‐ 0% 232 Streets Maint $ 1,313,626 $ 2,148,128 $ 2,089,464 $ 2,423,871 $ 334,407 16% 233 Staffing $ 958,355 $ 1,332,218 $ 1,214,264 $ 1,498,671 $ 284,407 23% 234 Other Operating Costs $ 314,058 $ 464,374 $ 556,600 $ 581,600 $ 25,000 4% 235 Contract Services $ 41,212 $ 351,536 $ 318,600 $ 343,600 $ 25,000 8% 236 Swim Center Maint $ 449,101 $ 615,828 $ 602,752 $ 595,198 $ (7,554) ‐1% 237 Staffing $ 141,978 $ 180,999 $ 160,852 $ 143,218 $ (17,634) ‐11% 238 Other Operating Costs $ 287,910 $ 407,732 $ 416,800 $ 426,880 $ 10,080 2% 239 Contract Services $ 19,212 $ 27,098 $ 25,100 $ 25,100 $ ‐ 0% 240 Traffic Signals and Lighting $ 553,073 $ 607,877 $ 519,510 $ 535,973 $ 16,463 3% 241 Staffing $ 227,066 $ 296,129 $ 263,110 $ 256,709 $ (6,401) ‐2% 242 Other Operating Costs $ 311,621 $ 235,299 $ 241,400 $ 264,264 $ 22,864 9% 243 Contract Services $ 14,387 $ 76,449 $ 15,000 $ 15,000 $ ‐ 0% 244 Transportation Plan and Eng $ 891,289 $ 1,288,538 $ 1,027,502 $ 995,326 $ (32,176) ‐3% 245 Staffing $ 853,858 $ 1,074,576 $ 964,002 $ 925,269 $ (38,733) ‐4% 246 Other Operating Costs $ 32,175 $ 47,300 $ 48,500 $ 55,057 $ 6,557 14% 247 Contract Services $ 5,256 $ 166,662 $ 15,000 $ 15,000 $ ‐ 0% 248 Urban Forest Services $ 449,130 $ 447,375 $ 457,534 $ 455,180 $ (2,354) ‐1% 249 Staffing $ 403,563 $ 315,635 $ 376,584 $ 356,005 $ (20,579) ‐5% 250 Other Operating Costs $ 15,515 $ 30,192 $ 26,950 $ 26,950 $ ‐ 0% 251 Contract Services $ 30,052 $ 101,549 $ 54,000 $ 72,225 $ 18,225 34% 252 Solid Waste Recycling $ 119,370 $ 355,478 $ 176,280 $ 317,456 $ 141,176 80% 253 Solid Waste Recycling $ 119,370 $ 355,478 $ 176,280 $ 317,456 $ 141,176 80% 254 Staffing $ 113,337 $ 227,664 $ 129,770 $ 270,946 $ 141,176 109% 255 Other Operating Costs $ 6,033 $ 36,510 $ 36,510 $ 36,510 $ ‐ 0% 256 Contract Services $ ‐ $ 91,304 $ 10,000 $ 10,000 $ ‐ 0% 257 General Fund Total $ 68,745,623 $ 92,293,090 $ 79,576,996 $ 83,124,548 $ 3,547,551 4% General Fund
Budget Document Pg. 28
Table G‐8: Detailed General Fund Revenue 20‐21 Actuals 21‐22 Budget 22‐23 Original Budget
22‐23 Revised
Budget Change % Change
1 Tax & Franchise Revenue 71,747,369 $ 88, $ 85, 006,932 $ 91, 320,922 $ 5,885,342 206,264 $ 7% 2 Sales Tax (Bradley Burns) 20,067,740 $ 20,790,779 $ 19,086,000 $ 21,789,000 $ 2,703,000 $ 14% 3 Local Revenue Measure G 12,779,713 $ 25,810,000 $ 25,202,000 $ 27,049,000 $ 1,847,000 $ 7% 4 Property Tax 19,858,530 $ 20,157,153 $ 20,781,387 $ 20,746,387 $ (35,000) $ 0% 5 Transient Occupancy Tax 6,960,035 $ 9, $ 7, 051,000 $ 8, 753,000 $ 883,000 636,000 $ 11% 6 Business Tax 2,937,176 $ 2, $ 2, 832,000 $ 2, 547,000 $ 342,000 889,000 $ 13% 7 Cannabis Tax 844,939 $ 1, $ 1, 000,000 $ 1, 500,000 $ (100,000) 400,000 $ ‐7% 8 Franchise Fees 1,796,829 $ 1, $ 1, 575,000 $ 1, 606,000 $ ‐ 606,000 $ 0% 9 Gas Tax (SB1) 851,292 $ $ 915,000 $ 1, 941,535 $ 108,342 049,877 $ 12% 10 Safety Prop 172 $ 425,136 $ 493,000 $ 339,000 $ 497,000 $ 158,000 47% 11 Utility User Tax $ 5,225,979 $ 5,383,000 $ 5,565,000 $ 5,544,000 $ (21,000) 0% 12 Development Review $ 7,094,935 $ 6,820,055 $ 6,864,650 $ 5,917,618 $ (947,032) ‐14% 13 Building Permits $ 3,583,995 $ 3,510,000 $ 3,600,000 $ 2,921,700 $ (678,300) ‐19% 14 Code Enforcement Fines $ 90,879 $ 90,000 $ 100,000 $ 60,000 $ (40,000) ‐40% 15 Development Review Fees $ 508,373 $ 400,000 $ 467,000 $ 341,228 $ (125,772) ‐27% 16 Encroachment Permits $ 327,948 $ 305,000 $ 315,650 $ 323,340 $ 7,690 2% 17 Engineering Development Review Fees $ 116,097 $ 135,000 $ 140,000 $ 123,803 $ (16,197) ‐12% 18 Infrastructure Plan Check & Inspection $ 829,252 $ 1,200,000 $ 1,236,000 $ 1,432,352 $ 196,352 16% 19 Plan Check Fees $ 1,140,509 $ 871,776 $ 400,000 $ 299,000 $ (101,000) ‐25% 20 Planning & Zoning Fee $ 506,162 $ 600,000 $ 606,000 $ 416,195 $ (189,805) ‐31% 21 TIPP‐ Contra Revenue Account $ (8,279) $ (291,721) $ ‐ $ ‐ $ ‐ 22 Parks & Recreation $ 1,616,010 $ 1,615,555 $ 2,039,215 $ 1,978,920 $ (60,295) ‐3% 23 Adult Athletic Fees $ 46,307 $ 122,400 $ 122,400 $ 154,362 $ 31,962 26% 24 Aquatics Daily Use Fees $ 50,361 $ 73,075 $ 121,132 $ 115,175 $ (5,957) ‐5% 25 Driving Range Fees $ 12,561 $ 11,715 $ 11,715 $ 12,900 $ 10% 1,185 26 Golf Cart Rentals $ 12,429 $ 28,262 $ 28,262 $ 29,675 $ 1,413 5% 27 Golf Greens Fees $ 198,058 $ 200,000 $ 224,400 $ 235,180 $ 10,780 5% 29 Golf Rental Fees $ 7,889 $ 10,566 $ 10,566 $ 11,232 $ 6% 666 30 Indoor Rental & Use Fees 12,201 $ $ 39,532 $ 54,331 $ 65,100 $ 20% 10,769 31 Instruction Fees 56,152 $ $ 61,400 $ 70,000 $ 97,830 $ 40% 27,830 32 Junior Ranger Camps 4,210 $ $ 4,500 $ 4,500 $ 4,982 $ 11% 482 33 Library Rental $ ‐ $ 6,500 $ 21,500 $ 16,290 $ ‐24% (5,210) 35 Multi Day Swim Passes $ 56,387 $ 41,753 $ 41,753 $ 44,383 $ 2,630 6% 36 Other Parks & Recreation Revenue $ 41,780 $ 45,000 $ 60,641 $ 58,482 $ (2,159) ‐4% 37 Outdoor Rental & Use Fees $ 61,033 $ 88,867 $ 118,850 $ 129,960 $ 11,110 9% 38 Sales Taxable $ 14,741 $ 10,000 $ 10,000 $ 10,000 $ 0% ‐ 39 Special Events ‐ City Sponsered $ 3,564 $ 50,000 $ 50,000 $ 13,583 $ (36,417) ‐73% 40 Special Events App/Permit $ 4,333 $ 20,000 $ 30,600 $ 33,293 $ 2,693 9% 41 Special Events Insurance $ 884 $ 6,000 $ 9,600 $ 6,000 $ ‐38% (3,600) 42 Swim Instruction Fees $ 49,997 $ 20,923 $ 69,160 $ 75,108 $ 5,948 9% 43 Therapy Pool Fees $ 9,553 $ 8,627 $ 10,096 $ 16,304 $ 61% 6,208 44 Youth Athletic Fees $ 36,071 $ 48,000 $ 53,709 $ 55,000 $ 1,291 2% 45 Youth Services Camps $ 86,776 $ 106,650 $ 149,300 $ 154,275 $ 4,975 3% 46 Youth Services Childcare $ 849,552 $ 611,785 $ 766,700 $ 639,806 $ (126,894) ‐17% 47 Fire $ 1,500,759 $ 1,440,260 $ 1,422,086 $ 1,576,322 $ 154,236 11% 48 Cal Poly Fire Services $ 315,241 $ 273,567 $ 314,122 $ 361,684 $ 47,562 15% 49 CUPA Inspection Fees $ 146,953 $ 160,000 $ 160,000 $ 172,800 $ 12,800 8% 50 Fire Alarm Permits $ 8,962 $ 10,010 $ 10,010 $ 10,010 $ 0% ‐ 51 Fire Department Permits $ 101,572 $ 100,000 $ 100,000 $ 108,000 $ 8,000 8% 52 Fire Plan Check & Inspection $ 361,415 $ 368,800 $ 350,000 $ 350,000 $ 0% ‐ 53 Medical ER Recovery $ 198,103 $ 201,993 $ 202,064 $ 216,938 $ 14,874 7% 54 Other Fire Department Revenue $ 41,426 $ 5,890 $ 5,890 $ 5,890 $ 0% ‐ 55 R1 Inspection Fees $ 327,088 $ 320,000 $ 280,000 $ 351,000 $ 71,000 25% 56 Police $ 600,406 $ 616,440 $ 637,196 $ 632,325 $ (4,871) ‐1% 57 Accident Reports $ 1,977 $ 2,000 $ 3,400 $ 3,400 $ 0% ‐ 58 Administrative Citations ‐ Safety $ 149,065 $ 125,000 $ 152,833 $ 152,833 $ 0% ‐ 59 Alarm Permits ‐ Contract (Police) $ 107,717 $ 90,000 $ 90,000 $ 90,000 $ 0% ‐ 2021‐23 Financial Plan
General Fund
Budget Document Pg. 29
General Fund
Table G‐8: Detailed General Fund Revenue 20‐21 Actuals 21‐22 Budget 2021‐23 Financial Plan
22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
60 Collision Investigation $ 1,848 $ 3,000 $ 3,000 $ 3,000 $ 0% ‐ 62 DUI Cost Recovery $ 18,968 $ 16,417 $ 16,417 $ 16,417 $ 0% ‐ 63 Other Police Revenue $ 218,768 $ 256,335 $ 250,000 $ 250,000 $ 0% ‐ 64 Police Department Permits $ 2,635 $ 7,511 $ 7,511 $ 7,511 $ 0% ‐ 65 Police Issued Parking Fines $ 61,057 $ 75,000 $ 75,000 $ 70,000 $ (5,000) ‐7% 66 Property Release Fees $ 33 $ 500 $ (1,642) $ (1,642) $ 0% ‐ 67 Second Response Fees $ ‐ $ 1,071 $ 1,071 $ 1,200 $ 12% 129 68 Tobacco Permits $ 29,247 $ 29,000 $ 29,000 $ 29,000 $ 0% ‐ 69 Tow Release Fees $ 7,441 $ 9,000 $ 9,000 $ 9,000 $ 0% ‐ 70 Witness Fees $ 1,650 $ 1,606 $ 1,606 $ 1,606 $ 0% ‐ 71 General Government $ 1,890,201 $ 1,721,726 $ 2,099,853 $ 1,668,952 $ (460,000) ‐22% 72 Business Licenses $ 442,200 $ 418,443 $ 426,812 $ 445,911 $ 0% ‐ 73 Cannabis Operator License $ 90,449 $ 157,000 $ 388,000 $ 210,000 $ (178,000) ‐46% 75 Impact Fees and Special Assessments $ 147,070 $ ‐ $ ‐ $ ‐ $ ‐ 76 Interest on Investment $ 54,464 $ 230,000 $ 500,000 $ 230,000 $ (282,000) ‐55% 77 Misc Fines & Fortfietures $ 95,371 $ 17,596 $ 37,596 $ 37,596 $ 0% ‐ 78 Miscellaneous $ 676,867 $ 625,437 $ 471,100 $ 469,100 $ 0% ‐ 79 Motor Vehicle Fines $ 75,677 $ 118,500 $ 118,500 $ 118,500 $ 0% ‐ 80 Other Rent & Lease Revenue $ 308,103 $ 154,750 $ 157,845 $ 157,845 $ 0% ‐ 81 Grants & Subventions $ 3,114,368 $ 7,986,429 $ 5,365,000 $ 7,369,562 $ 2,004,562 ‐35% 82 AB939 Reimbursement $ 181,338 $ ‐ $ ‐ $ 327,328 $ 327,328 83 Federal Stimulus Grants $ 566,680 $ ‐ $ ‐ $ ‐ $ ‐ 84 Law Enforcement SB229 Grant (COPS SLESF $ 156,727 $ ‐ $ ‐ $ 140,000 $ 140,000 85 Mutual Aid Reimbursements $ 1,833,347 $ 684,264 $ ‐ $ ‐ $ ‐ 86 Other Grants/Subventions $ 178,185 $ 447,000 $ 900,000 $ ‐ $ (900,000) ‐100% 87 Police Training Grant (POST) $ 6,001 $ 64,485 $ ‐ $ ‐ $ ‐ 88 State Grants & Subventions $ 192,091 $ 8,447 $ ‐ $ ‐ $ ‐ 89 Zone 9 Streambed Clearance $ ‐ $ ‐ $ ‐ $ 120,000 $ 120,000 91 ARPA Allocation $ 6,782,234 $ 4,465,000 $ 6,782,234 $ 2,317,234 52% 92 Total General Fund $ 87,564,049 $ 108,207,398 $ 103,748,922 $ 110,349,963 $ 6,571,942 6% Budget Document Pg. 30
Special Revenue & Other Funds
Section 4: Special Revenue and Other Funds
Tourism Business Improvement District (TBID)
The Tourism Business Improvement District (TBID) assessment is set at 2% of the lodging industry’s gross receipts. The program annually aligns its operating budget with its anticipated revenues. Tourism along the Central Coast made a strong comeback as the region re-opened and revenues are reaching all-time highs as new hotels drive up the average daily rate and available inventory. Staff expect the growth to slow and likely decline moving into FY 2022-23 once pandemic driven demand is fading.
Table S-1: TBID Budget
Downtown Business Improvement District
The Downtown Business Improvement District assessment is collected annually with the Business Tax renewal from businesses located within the geographical boundary of the Downtown District. Business tax certificates are renewed at the beginning of each fiscal year based on prior calendar year gross receipts. The revenue is then remitted to Downtown SLO monthly via contract services.
Table S-2: Downtown Business Improvement District Budget Boysen Ranch Conservation Fund
Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard, and O’Connor Way. The funding was set up as an endowment to fund monitoring and maintenance of the restored wetland area. No changes in financial position were made for this fund.
Table S-3: Boysen Ranch Conservation Fund Budget
Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change % Change
Contract Services $ 769,214 $ 1,245,420 $ 1,229,436 $ 1,232,968 $ 3,532 0% Other Operating Costs $ 25,546 $ 97,627 $ 89,100 $ 89,100 $ - 0% Staffing $ 203,149 $ 268,258 $ 232,064 $ 219,993 $ (12,071) -5% Transfers $ 29,498 $ 28,852 $ 31,012 $ 34,544 $ 3,532 11% Total $ 1,027,407 $ 1,640,157 $ 1,581,612 $ 1,576,605 $ (5,007) 0% 2021-23 Financial Plan
Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change % Change
Contract Services $ 249,074 $ 245,000 $ 260,400 $ 275,000 $ 14,600 6% Total $ 249,074 $ 245,000 $ 260,400 $ 275,000 $ 14,600 6% 2021-23 Financial Plan
Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change % Change
Contract Services $ - $ 22,500 $ 7,500 $ 7,500 $ - 0%
Grand Total $ - $ 22,500 $ 7,500 $ 7,500 $ - 0%
2021-23 Financial Plan
Budget Document Pg. 31
Special Revenue & Other Funds
Public Safety Equipment Fund
The Public Safety Equipment Fund (PSEF) was created with the 2019-21 Financial Plan to help budget and forecast the replacement of Public Safety equipment that has expired or become damaged. The Fund had received an original seed amount with the 2019-20 budget and, going forward, an annual allocation is made from the Local Revenue Measure (see pg 68). The current balance of the fund is $1,165,124. At the time of Financial Plan adoption, this dedicated funding was accounted for as a restricted balance within the General Fund and budget was drawn out on an as-needed basis. The fund is now a stand-alone fund and expenditures will be budgeted and paid for directly out of the new fund. This methodology will help with expenditure tracking and overall fund management. In 2022-23, planned expenditures include the replacement of gas masks, drones, AEDs, breathing apparatus sets, and a cardiac monitor.
Table S-4: Public Safety Equipment Fund Budget
Insurance Fund
The Insurance Fund serves to pay the City’s annual premiums for liability, workers’ compensation, special events, volunteer, and property insurance needed to protect the City and to manage fluctuations in claims-related expenses.
The City has received notification that its required contribution for 2022-23 will be higher than the amount adopted with the 2021-23 Financial Plan. The increase in insurance costs this year is attributable 3 factors:
1) There were some high-cost claims within the membership pool to which the City belongs and shares expenses; 2) increases in payroll and the number of employees also increased exposure and associated costs; 3) a recent appraisal increased the valuation of the City’s properties and costs to insure them.
In order to keep within the adopted transfer to the fund, available fund balance will be used to cover the change in cost for 2022-23. The Fund balance is currently $1,757,013; sufficient to cover the increase of $314,000. However, the City’s fiscal policies under Section 7. Fund Balance and Reserves (F) stipulate that the reserve will be based on a 75% confidence level of the previous five-year average claims experience, which amounts to approximately $1,500,000. The use of fund balance will leave 1,443,013 which dips slightly below the policy required level. This will be reconsidered with the 2023-25 Financial Plan to ensure the reserve levels are appropriately funded.
Table S-5: Insurance Fund Budget
Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change % Change
Other Operating Costs $ - $ - $ - $ 445,978 $ 445,978 - Grand Total $ - $ - $ - $ 445,978 $ 445,978 -
2021-23 Financial Plan
Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change % Change
Liability/Other Insurance $ 1,323,824 $ 2,002,059 $ 2,055,128 $ 2,193,116 $ 137,988 7% Worker's Comp Insurance $ 2,037,611 $ 2,181,044 $ 2,668,844 $ 2,844,913 $ 176,069 7% Grand Total $ 3,361,435 $ 4,183,103 $ 4,723,972 $ 5,038,029 $ 314,057 7% 2021-23 Financial Plan
Budget Document Pg. 32
Enterprise Funds – Water and Sewer
Section 4:Utilities Department – Water and Sewer Enterprise Funds
Overview
The City’s water and sewer operations are paid for by service rate revenues and cover all costs for operations, maintenance, infrastructure replacement, and debt service. Taxes, including utility user taxes, do not support these services. When preparing annual budgets, the Utilities Department analyzes past financial results, reviews upcoming operational and capital needs, and current and future debt obligations to assess the financial position of each of the funds. The 2021-23 Financial Plan adopted balanced Water and Sewer Fund budgets that considered all these factors. In June 2021, the City Council also adopted a two-year rate increase that was anticipated to cover expenses related to replacement of aging water and sewer lines, increasing regulatory requirements, and increased equipment, maintenance, and operational costs. Recommended water and sewer rate increases for 2021-22 and 2022-23 are lower than originally projected. The most recent rate study, conducted in 2018, had projected rate increases would need to be 5.5 percent in 2021 and 5.5 percent in 2022. However, following a 2021 rate confirmation study, rates were adopted by the City Council as follows:
Year Adopted Water
Rate Increase
Adopted Sewer
Rate Increase
2021‐22 3.5% 3.5%
2022‐23 3.5% 3.5%
Revenue
Post-Pandemic Revenue Normalization
Emerging from the Covid‐19 pandemic, utilities revenues are tracking on-pace for 2021-22 and are also anticipated to meet 2022-23 projections. Data used in this analysis is current as of April 2022, and includes thefollowing notable details:
1. Distribution of water use amongst customer classes has returned to a pre-pandemic norm as businesses have reopened, remote work has decreased, schools have opened, and Cal Poly has resumed in-person classes.
2. The City’s Water Fund received a payment of $225,015.67 in 2021-22 from the State of California for pandemic-related past-due water bills. An additional $190,752.46 is anticipated to be received during Fiscal Year 2021-22 to fund past-due sewer bills. These funds were and will be used to offset or “forgive” past due balances held by customers during the pandemic.
3. Cal Poly’s water and sewer use has returned to a pre-pandemic level, and revenues are projected in alignment with budget projections.
Budget Document Pg. 33
Table U1: Utility Rates
Enterprise Funds – Water and Sewer
Utilities Revenue Overview (Excludes Debt Proceeds)
Table U2: Water Revenue 2021-22 Budget 2022-23 Original Budget
2022-23 Revised
Budget Change % Change
1 Water Sales $ 13,785,100 $ 16,328,641 $ 16,328,641 $ - 0% 2 Utilities Base Charges $ 5,559,695 $ 5,754,284 $ 5,754,284 $ - 0% 3 Prop 1B Revenue $ 256,395 $ 1,395,000 $ 1,395,000 $ - 4 Sales to Cal Poly $ 971,788 $ 1,005,801 $ 1,044,673 $ 38,872 4% 5 Reclaimed Water Sales $ 961,817 $ 995,481 $ 995,481 $ - 0% 6 Cal Poly Capacity & Resilience $ 223,000 $ 224,795 $ 259,490 $ 34,695 15% 7 Development Impact Fees $ 1,548,200 $ 1,370,400 $ 1,370,400 $ - 0% 8 Miscellaneous Penalties $ 118,000 $ 118,000 $ 118,000 $ - 0% 9 Utilities Set-up Fees $ 217,000 $ 217,000 $ 130,000 $ (87,000) -40% 10 Interest on Investment $ 407,600 $ 423,500 $ 50,000 $ (373,500) -88% 11 Development Review Fees $ 26,000 $ 26,000 $ 26,000 $ - 0% 12 Miscellaneous Revenue $ 20,000 $ 20,000 $ 20,000 $ - 0% 13 Credit Collections $ 14,000 $ 14,000 $ 14,000 $ - 0% 14 Other Utilities Charges $ 1,000 $ 1,000 $ 1,000 $ - 0% 15 Low Income Subsidy $ (100,000) $ (100,000) $ (100,000) $ - 0% Totals $ 24,009,595 $ 27,793,902 $ 27,406,969 $ (386,933) -1% Table U3: Sewer Revenue 2021-22 Budget 2022-23 Original Budget
2022-23 Revised
Budget Change % Change
1 Sewer Service Charges $12,359,499 $12,792,082 $12,792,082 $0 0% 2 Utilities Base Charges $4,652,807 $4,815,655 $4,815,655 $0 0% 3 Sales to Cal Poly $991,741 $1,026,452 $1,026,452 $0 0% 4 Cal Poly Capacity & Resilience $243,568 $243,568 $243,568 $0 0% 5 Development Impact Fees $1,383,900 $1,190,200 $1,190,200 $0 0% 6 Miscellaneous Penalties $119,000 $119,000 $120,000 $1,000 1% 7 Industrial User Permits $85,000 $0 $85,000 $85,000
8 Other Utilities Charges $1,000 $0 $70,000 $70,000
9 Utilities Set-up Fees $217,000 $217,000 $60,000 -$157,000 -72% 10 Interest on Investment $401,514 $608,300 $50,000 -$558,300 -92% 11 Development Review Fees $26,000 $26,000 $26,000 $0 0% 12 Miscellaneous Revenue $20,000 $20,000 $20,000 $0 0%
13 Credit Collections $14,000 $14,000 $10,000 -$4,000 -29% 14 Waterways Management Fees $0 $85,000 $0 -$85,000 -100% 15 Low Income Subsidy -$100,000 -$100,000 -$100,000 $0 0% Totals $20,415,029 $21,057,257 $20,408,957 -$648,300 -3% Budget Document Pg. 34
Enterprise Funds – Water and Sewer
Water Shutoff Moratorium
The Covid-19 pandemic and resulting California State water shut-off moratorium had resulted in an increase in past due water accounts. The moratorium on water shutoffs for non-payment expired on December 31, 2021. Over the course of the pandemic Utility Department staff worked with residents, business owners, and community members to “catch up” on past due accounts with the option of payment plans for outstanding account balances. In additional to payment options for outstanding balances, staff highlighted the Customer Assistance Program (CAP) which provides discounted water and sewer rates to income-eligible customers. Following the extended moratorium on shutoffs, shutoffs for non-payment were reinitiated in early April with volumes equivalent to pre-pandemic levels.
Key Assumptions and the New Normal
The Utilities Department used the above data and the following assumptions to forecast revenues for the 2022‐23 Supplemental Budget. These assumptions will continue to be monitored and updated as more information becomes available.
1. Consumption revenue will track as originally projected. This estimate is derived from year-todate water production and consumption data.
2. The already approved 2022‐23 rate increases (3.5 percent water and 3.5 percent sewer) will be enacted as previously scheduled. As noted prior, recommended water and sewer rate increases for 2021-22 and 2022-23 are lower than originally projected in the 2018 rate study.
3. Fiscal impacts from drought are anticipated to be minimal when compared to prior drought periods due to the City having an already-low per capita water use. Impacts will be further limited by the changes to the rate structure that were made following the 2012-2015 drought which resulted in a higher portion of a customer’s bill being fixed (a base fee), and a lower portion being variable in nature (consumption charges).
Expenditures
Inflation and Supply Chain Interruptions
Historical methodologies used to forecast Water and Sewer Fund expenditures have been challenged as the department has experienced uncharacteristically high increases in the prices of raw materials, specifically those related to construction materials and chemicals. The Utilities Department has compiled available data and performed an analysis to develop a strategy for accommodating the significant increase in projected expenditures to the Water and Sewer Funds. Data used in this analysis is current as of April 2022 and is discussed in greater detail below.
Chemical Price Increases
1. Due to a drastic change in purchasing cost, the chemical budget increased by approximately 50 percent at the City’s Water Treatment Plant, resulting in ongoing increases in projected expenditures of approximately $186,000 compared to 2021-22 budgeted levels in the Water Fund. In years past, typical chemical cost increases ranged from five to ten percent. Due to the current supply chain shortages, specific chemical prices have increased by as much as 106 percent compared to the prior fiscal year.
Budget Document Pg. 35
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2. Similarly in wastewater treatment, the chemical budget increased by approximately 29 percent at the City’s Water Resource Recovery Facility (WRRF), amounting to an increase of approximately $180,000 when compared to the 2021-22 levels budgeted in the Sewer Fund.
Increases at the Water Resource Recovery Facility would have been substantially higher, if not offset by new equipment coming online that requires less chemical use when compared to the older equipment.
3. When establishing a new contract for chemical deliveries in 2021, significant price instability existed in the chemical market. To keep vendors from artificially inflating bid amounts to account for this uncertainty, staff worked with chemical vendors to allow for prices to be reexamined and renegotiated mid-way through the contract. Chemical prices are subject to renegotiation in August of 2022 and could increase further should the chemical market remain unstable. Significant cost increases due to the upcoming chemical price renegotiations in August would require the Utilities Department to return to the Council with additional funding requests.
Electrical Price Increases
1. Electrical costs for the department’s non-Community Choice Energy (CCE) operations are projected to increase as much as 20 percent over original projections. The facilities that are unable to utilize CCE, “non-CCE”, are located outside of the City limits and include the City’s Water Treatment Plant, Whale Rock Reservoir, Salinas Reservoir, and Nacimiento Reservoir.
Total electrical increases for those four facilities are projected at approximately $505,000 for the Water Fund over original 2022-23 budget projections. These increases are entirely due to source water pumping cost increases.
2. Electrical increases of $85,000 were originally anticipated at the City’s Water Treatment Plant; however, these have been offset in full by electrical savings realized from the recent Water Treatment Plant Energy Efficiency Project that replaced the facility’s ozone disinfection system with a more energy-efficient system.
3. All Sewer Fund electricity use is located within the City and therefore provided by the CCE1 Program and is not anticipated to increase in 2022-23.
1 The March 1, 2022, transition to new rates coincides with a ten-year high in national energy costs. Despite these challenging energy market conditions, the CCCE Policy Board of Directors on December 15, 2021, finalized a CCCE Electric Generation Rate anticipated to be 3% – 25% lower than PG&E’s anticipated Electric Generation Rates. These rates are through December 2022.
CCCE customers have the same access to rate assistance programs as customers of PG&E. Rate relief provided through the CARE, FERA, AMP, HEAP or Medical Baseline programs also apply to CCCE customers.
Budget Document Pg. 36
Enterprise Funds – Water and Sewer
Drought-Related Increases
In March 2022, the Governor of California issued an executive order related to statewide drought conditions. The executive order outlined a series of actions, which as of this writing, are still being considered for adoption by the State Water Board. The most impactful of these actions could require all of California’s urban water suppliers to implement the water saving measures outlined in Level 2 of their Water Shortage Contingency Plans, regardless of local water supply conditions. Notable actions that the City would be required to implement from Stage 2 of its Water Shortage Contingency Plan include requirements for additional community outreach, a restriction of allowable irrigation hours, implementation of rebate programs, an increase in proactive conservation audits and inspections. The extent of the impacts of the executive order will be largely dependent on the specific actions approved by the State Water Resources Control Board and the implementation timeline that the State approves.
Regardless of the specific actions of the State Water Board, City staff anticipate substantial increases in drought and water conservation-related work as a result of the State’s messaging about ongoing drought and water shortages across the State. Should the State Water Board implement less significant actions than outlined by the Governor, the department may not need the full amount of additional budget requested.
1. Utilities Department staff are anticipating a higher volume of drought-related work as the City enters its third consecutive year of less than average rainfall and as it implements programs associated with the recent executive order. Additional support is being requested in the Utility Billing and Water Resources sections to accommodate increased drought-related workloads.
Total temporary and contract staffing increases amount to $131,200 for Fiscal Year 2022-23 and provide one full-time contract Water Resources Technician, two part-time supplemental Water Resources Technicians, and one part-time supplemental Utility Billing Assistant.
2. In alignment with the request for additional staffing budget, staff are anticipating the need for additional public outreach-related drought funding. Total supplemental outreach funding being requested is $40,000 for FY 2022-23.
3. To support water conservation program expansion during drought, staff are requesting $30,000 in additional funding for water conservation-related materials.
4. During the 2012-2015 drought, the Water Fund experienced a significant reduction in revenue due to drought and state-mandated conservation actions. While staff acknowledge that there is likely to be some reduction in Water and Sewer Fund revenues due to the drought, it is not anticipated to be as substantial as what was previously experienced due to two major factors.
First, the water rate structure was updated following the 2012-2015 drought with a higher share of a customer’s monthly bill now being fixed, and not dependent on monthly water consumption. Therefore, variation in consumption has a smaller impact on the total revenue brought in from water sales. Second, water use within the City never returned to its predrought levels following the 2012-2015 drought and staff do not anticipate that impacts from Stage 2 measures will have as substantial of an impact as they did during the last drought.
Measures outlined within Stages 3-5 of the Water Shortage Contingency Plan require more Budget Document Pg. 37
Enterprise Funds – Water and Sewer
significant mandatory water conservation measures and would have more substantial impacts on revenues.
5. Although drought is often only considered a domestic water supply issue, there is also a major impact on the wastewater treatment processes during periods of extended drought. The concentration of waste within wastewater are often much higher as indoor water use decreases. As a result, the City’s wastewater system treats and processes waste with much higher levels of waste concentrations, placing major stress on the system and operations. In addition, during drought, it becomes more difficult to meet state wastewater quality standards with increased pollutant strength due to greater concentrations resulting from less water being discharged. Staff will continue to monitor drought impacts on the wastewater treatment process.
6. The City is undertaking a Recycled Water Maximization Study that will be presented to Council at the end of the calendar year. This study draws from the conclusions of the City’s 2017 adopted Recycled Water Master Plan, the treatment design aspects incorporated into the current construction of the Water Resources Recovery Facility (WRRF), and the recently adopted Groundwater Sustainability Plan for the San Luis Obispo Basin. This study will evaluate opportunities for utilization of any remaining available recycled water until a point in time in which the City may utilize this resource for potable reuse. Potential uses for available recycled water during this interim period could include expanding uses within the City and short-term contract sales outside of the City. The Recycled Water Maximization Study will also evaluate seasonal availability of recycled water, cost of production and delivery, policy analysis and General Plan conformance, and the City’s water rights.
Budget Document Pg. 38
Enterprise Funds – Water and Sewer
Table U4: Utilities Operating Expenditures by Program (excludes Debt & Capital) Table U5: Utilities Expenditures by Type (excludes Debt & Capital) Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change %
Change
Water Fund
1 Water Admin and Eng $ 5,622,752 $ 1,563,537 $ 1,290,850 $ 1,348,534 $ 57,684 4% 2 Water Source of Supply $ 9,803,475 $ 10,945,103 $ 10,233,233 $ 10,818,843 $ 585,610 6% 3 Water Treatment $ 2,720,989 $ 3,609,374 $ 3,229,196 $ 3,461,885 $ 232,690 7% 4 Water Distribution $ 1,612,549 $ 1,985,097 $ 1,869,866 $ 1,861,907 $ (7,959) 0% 5 Water Resources $ 256,913 $ 579,126 $ 465,257 $ 571,228 $ 105,971 23% 6 Utilities Revenue $ - $ 292,433 $ 276,100 $ 308,054 $ 31,954 12% 7 General Government/NonDepartmental $ 2,799,424 $ 2,677,546 $ 2,747,226 $ 2,441,375 $ (305,851) -11% 8 Water Fund Total $ 22,816,102 $ 21,652,217 $ 20,111,728 $ 20,811,827 $ 700,099 3% 9 Sewer Fund
10 Wastewater Admin and Eng $ 4,873,327 $ 1,753,310 $ 1,419,224 $ 1,390,945 $ (28,279) -2% 11 Wastewater Collection $ 1,106,185 $ 1,496,082 $ 1,261,897 $ 1,331,027 $ 69,130 5% 12 Environmental Programs $ 224,631 $ 317,393 $ 274,771 $ 282,237 $ 7,466 3% 13 Water Resource Recovery $ 3,371,998 $ 4,552,817 $ 4,062,458 $ 4,182,465 $ 120,008 3% 14 Utilities Revenue $ 474,350 $ 335,148 $ 284,879 $ 310,113 $ 25,234 9% 15 Water Quality Lab $ 668,269 $ 966,653 $ 827,721 $ 832,235 $ 4,514 1% 16 General Government/NonDepartmental $ 2,528,185 $ 2,539,416 $ 2,538,928 $ 2,676,437 $ 137,509 5% 17 Sewer Fund Total $ 13,246,945 $ 11,960,818 $ 10,669,878 $ 11,005,459 $ 335,581 3% Expenditure Type 20-21 Actuals 21-22 Budget 22-23 Original Budget
22-23 Revised
Budget Change %
Change
Water Fund
1 Staffing $ 4,143,709 $ 5,551,424 $ 4,900,833 $ 4,968,326 $ 67,493 1% 2 Contract Services $ 396,688 $ 765,881 $ 602,515 $ 665,420 $ 62,905 10% 3 Other Operating Costs $ 10,856,297 $ 12,817,734 $ 11,951,523 $ 12,866,328 $ 914,805 8% 4 Transfers $ 2,672,968 $ 2,517,178 $ 2,656,857 $ 2,656,857 $ - 0% 5 Water Fund Total $ 18,069,662 $ 21,652,217 $ 20,111,728 $ 21,156,931 $ 1,045,203 5% Sewer Fund
6 Staffing $ 4,413,273 $ 5,775,389 $ 4,951,456 $ 4,889,494 $ (61,962) -1% 7 Contract Services $ 691,314 $ 1,081,706 $ 822,931 $ 863,361 $ 40,430 5% 8 Other Operating Costs $ 1,903,669 $ 2,735,659 $ 2,448,484 $ 2,678,821 $ 230,337 9% 7 Transfers $ 6,238,684 $ 2,368,064 $ 2,447,007 $ 2,573,783 $ 126,776 5% 10 Sewer Fund Total $ 13,246,940 $ 11,960,818 $ 10,669,878 $ 11,005,459 $ 335,581 3% Budget Document Pg. 39
Enterprise Funds – Water and Sewer
Significant Operating Budget Changes
The Utilities Department is recommending significant operating budget changes (SOBCs) in 2022-23 in response to the chemical and electricity rate increases noted prior, implement required drought response, as well as the ongoing need for safety equipment and security services at the City’s water and wastewater facilities. The full SOBC write ups are detailed in Appendix U1 (pg. 46).
Table U6: Recommended Operating Budget Changes:
One-time Ongoing
1 Water $ 115,980 $ 864,290
2 Source of Supply $ 3,500 $ 582,797
3 Water Admin $ 40,000 $ 1,500
4 Water Distribution $ 18,000 $ 29,475
5 Water Resources $ 30,000 $ -
6 Water Treatment Plant $ 20,000 $ 232,268
7 Utility Billing $ 4,480 $ 18,250
8 Sewer $ 24,480 $ 246,287
9 Wastewater Admin $ - $ 2,500
10 Wastewater Collections $ 20,000 $ 15,000
11 WRRF $ - $ 210,537
12 Utility Billing $ 4,480 $ 18,250
13 Grand Total $ 140,460 $ 1,110,577
Solid Waste Recycling Program
The Solid Waste and Recycling Program is funded by the General Fund and AB 939/SB 1383 fees passed through San Luis Garbage Company customers and remitted monthly to the City. With the approval of the 2022 Solid Waste Rate Setting adopted by City Council on April 19, 2022, 1.55 percent of the total rate increase will be allocated to the City via additional AB 939/SB 1383 fees. The additional revenue is approximately $100,000 annually. For FY 22-23, the Solid Waste and Recycling Program operates with approximately $327,000 in revenues, and just over $317,000 in expenses, including personnel. The program is currently managed by one full-time equivalent (FTE) staff member, with support from a contract position expiring in August of 2022. The proposed budget for FY 22-23 includes the addition of a permanent FTE position, as mentioned below, due to the expansion of monitoring and compliance with regulatory state mandated programs.
Included in the General Fund section of the budget (pg. 41) is a request to allocate the funding for an additional position (1 FTE) to the Solid Waste and Recycling Program. In 2022, California’s SB 1383, the largest adopted solid waste bill in nearly 30 years, became effective and as a result, local government solid waste sections are expanding to comply. The expanded workload includes but is not limited1. toA: dopting an organics procurement policy.
2. Acquiring and submitting organics diversion data to the Integrated Waste Management Authority (IWMA) for regular reporting to the State.
3. Mediating customer issues and complaints.
4. Ensuring contract compliance between the IWMA, City, and San Luis Garbage Company.
5. Developing an enforcement methodology by January 1, 2024.
Budget Document Pg. 40
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Continued conversations with Human Resources regarding the program's expansion are occurring to determine the appropriate position and pay grade.
Unassigned Working Capital
It is the City's policy to maintain a reserved working capital balance of 20 percent of operating expenditures in the Water and Sewer Funds, this reserve is known as the “Operating Reserve”. This is considered the minimum level necessary to adequately provide for:
1. Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy.
2. Contingencies for unseen operating or capital needs.
3. Cash flow requirements.
All working capital that is not designated is considered unassigned. The current target for Unassigned Working Capital balance in the Water and Sewer Fund is $10million per fund.
Water Fund - Unassigned Working Capital
The Water Fund is facing increased expenditures that are largely attributable to the chemical and electricity cost increases that started in 2021-22. As the City conducts rate setting for a two-year period, these increases were not captured as part of the previously approved 3.5% rate increase for 2022-23, resulting in a projected shortfall for the 2022-23 fiscal year. The Water Fund Unassigned Working Capital balance for 2022-23 is approximately $9.1 million, which is healthy enough to absorb these impacts for a single year; however, long-term forecasts of the use of the Unassigned Working Capital to address these increased costs shows it decreasing to approximately $4.1 million by 2030-31.
The projected decrease in Unassigned Working Capital can largely be attributed to inflationary increases in material and labor costs in operating expenditures and capital improvement projects.
Rather than using the Unassigned Working Capital balance, the Water Fund will first utilize Rate Stabilization Reserves to fund the budget shortfall in this fiscal year. The goal and intent of Rate Stabilization Reserves are to provide a level of stability to both the City and the customer. Consistent with the Financial Plan Process and Policies, staff will address the longer-term impacts at the 2023-25 Financial Plan with potentially higher than previously forecasted rate increases to maintain the health of the Water Fund beginning in 2023-24 and to rebuild the Rate Stabilization Reserve fund balance. The use of Rate Stabilization Reserves, currently at $2.2 million, will allow the Utilities Department to continue to deliver a high level of service during the ongoing drought, allow for the continued execution of critical CIP projects, and will preserve the Unassigned Working Capital, currently at $10.2 million, in case of a drastic or significant economic downturn. The Water Fund Unassigned Working Capital is displayed on line 40 in the Five-Year Forecast on pg. 44.
Budget Document Pg. 41
Enterprise Funds – Water and Sewer
Sewer Fund – Unassigned Working Capital
Based on the long-term forecast the Sewer Fund is in a financially stable and healthy position with an anticipated Unassigned Working Capital balance of approximately $20.1 million in FY 2022-23.
However, at the close of FY 2023-24 the balance is anticipated to decrease to $16 million, and down to $14 million at the close of FY 2024-25 due to significant increases in material and labor costs associated with operating programs and capital improvement projects. For FY 2022-23, the increased expenditures are largely attributable to chemical cost increases of as much as 100 percent, which started in 2021-22. For FY 2023-24, electrical accounts will have a larger impact as the WRRF transitions from chemical to ultraviolet disinfection. This larger Unassigned Working Capital balance also exists for cashflow purposes on the WRRF Project. Based on current fiscal circumstances, the Sewer Fund is in a relatively stable position. The Sewer Fund Unassigned Working Capital is displayed on line 42 in the Five-Year Forecast on pg. 45.
Long Term Strategy
Since adoption of the 2021-23 Financial Plan, significant inflationary and supply chain-related issues have emerged, requiring that the previously adopted 2022-23 Water and Sewer Fund budgets be revised to maintain existing operations. The Water and Sewer Funds are separate and distinct; however, the impacts of inflationary price increases and supply chain disruptions have impacted both funds similarly. In addition to these impacts, the City experienced another abnormally dry winter that has caused the Water Fund to receive an increased volume of drought-related work and staff are anticipating the need for additional staffing and operating resources as the State of California rolls out a state-wide response to the current drought.
The procurement and use of chemicals is critical in delivering high quality water to the community, as well as treating wastewater in a manner to address regulatory, health, and safety standards. During FY 2022-23, staff will carefully evaluate operations and fiscal impacts related to the chemical and electricity budgets across the funds. Staffing and personnel costs are a major part of water and wastewater operations and expenses. Taking into consideration recent compensation increases and on-going negotiations with various employee groups, the Water and Sewer Funds anticipate staffing expenses to increase in FY 2022-23 as well. This will result in an on-going fiscal commitment related to personnel and staffing costs in future years, increasing total operating expenses. Due to the ongoing nature of these increased expenditures, this need must be offset by increased revenues. The Water and Sewer Fund long-term forecasts project annual revenues and expenditures, assuming a 3.5 percent rate increase each year. Initial analysis indicates that 3.5 percent increases on an ongoing basis are not adequate to accommodate increased expenditures in Water and Sewer Fund costs in outer years.
Utilities Department staff will engage with a rate consultant to reexamine the revenue needed to support essential water and wastewater operations, while accounting for chemical increases, electricity increases, capital construction cost increases, and staffing related increases.
In preparation of the 2023-25 Financial Plan, staff will take into consideration a new normal to ensure fund stability and long-term fiscal health to support the day-to-day operation of the water and wastewater systems. With increased operating costs seen in the areas of electricity, chemicals, staffing Budget Document Pg. 42
Enterprise Funds – Water and Sewer
among others including safety and security, staff is tasked with strategically navigating these factors in relation to rate setting in future years to continue operations that meet regulatory requirements and public expectations. It is important to note that these challenges are not specific to the City of San Luis Obispo, and utility agencies nationwide are facing similar challenges.
Summary
The City’s water and sewer operations are paid for by rate revenues and cover all costs for operations, maintenance, infrastructure replacement, and debt service. The Utilities Department is recommending significant operating budget changes (SOBCs) in 2022-23 in response to the chemical cost increases and electricity rate increases, drought response, as well as the ongoing need for safety equipment and security services at the City’s water and wastewater facilities. Due to the ongoing nature of these increased expenditures, this need must be offset by increased revenues. In preparation of the 2023-25 Financial Plan, staff will take into consideration a “new normal” to ensure fund stability and long-term fiscal health to support the day-to-day operation.
Budget Document Pg. 43
Enterprise Funds – Water and Sewer
Table U7: Water Fund Five Year Forecast
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Actual Budget Budget Budget Budget Budget
REVENUES BY TYPE
1 Water Service Sales (Charges) $ 15,417 $ 15,776 $ 16,329 $ 17,472 $ 18,695 $ 19,349 2 Utilities Base Fee Charges $ 5,213 $ 5,560 $ 5,754 $ 6,157 $ 6,588 $ 6,819 3 Sales to Cal Poly $ 954 $ 972 $ 1,045 $ 1,118 $ 1,196 $ 1,238 4 Cal Poly Capacity & Resilience $ 535 $ 223 $ 259 $ 233 $ 235 $ 240 5 Reclaimed Water Sales (Recycled Water) $ 1,061 $ 962 $ 995 $ 1,065 $ 1,140 $ 1,180 6 Development Impact Fees $ 4,746 $ 1,548 $ 1,370 $ 789 $ 800 $ 800 7 Investment and Property Revenue $ 585 $ 408 $ 50 $ 50 $ 50 $ 50 8 Long Term Debt Proceeds $ 11,030 $ 3,270 $ - $ 700 $ 6,000 $ 2,000 9 State Grants- (Prop 1B & SGMA) $ 326 $ 480 $ 1,395 $ - $ - $ - 10 Miscellaneous (Other) Revenue $ 596 $ 396 $ 309 $ 239 $ 239 $ 239 11 Rate Assistance Subsidy $ - $ (100) $ (100) $ (100) $ (100) $ (100) 12 TOTAL $ 40,465 $ 29,494 $ 27,407 $ 27,722 $ 34,842 $ 31,814 13 EXPENDITURE BY CATEGORY $ - $ - $ - $ -
14 Salaries & Benefits $ 4,144 $ 4,711 $ 4,968 $ 5,073 $ 5,179 $ 5,287 15 Operating Expenditures $ 11,253 $ 13,584 $ 13,532 $ 13,880 $ 14,136 $ 14,403 16 Capital Outlay $ 10,866 $ 16,419 $ 5,085 $ 4,386 $ 10,767 $ 6,182 17 Debt Service $ 2,460 $ 2,449 $ 2,443 $ 1,870 $ 1,869 $ 1,866 18 Transfers Out $ 2,673 $ 2,517 $ 2,312 $ 2,427 $ 2,549 $ 2,676 19 TOTAL $ 31,396 $ 39,679 $ 28,340 $ 27,636 $ 34,500 $ 30,415 20 EXPENDITURE BY FUNCTION $ - $ - $ - $ -
21 General Government $ 2,696 $ 2,517 $ 2,312 $ 2,427 $ 2,549 $ 2,676 22 Water Source of Supply $ 10,181 $ 14,159 $ 10,996 $ 11,220 $ 11,343 $ 11,469 23 Water Treatment $ 13,608 $ 10,178 $ 7,211 $ 6,099 $ 7,751 $ 6,146 24 Water Distribution $ 3,618 $ 10,210 $ 5,442 $ 5,412 $ 10,158 $ 7,564 25 Water Resources $ 257 $ 543 $ 571 $ 584 $ 597 $ 610
26 Water Administration $ 1,035 $ 1,723 $ 1,370 $ 1,446 $ 1,643 $ 1,480 27 Non-departmental $ - $ 72 $ 130 $ 132 $ 135 $ 138
28 Utilities Revenue (Billing) $ - $ 277 $ 308 $ 316 $ 325 $ 333 29 TOTAL $ $ 31,396 $ $ 39,679 $ $ 28,340 7,968 $ $ 27,636 $ $ 34,500 $ $ 30,415 30 CHANGES IN FINANCIAL POSITION $ - $ - $ - $ -
31 Working Capital - Beginning $ 20,765 $ 28,503 $ 17,478 $ 16,380 $ 16,301 $ 16,479 32 Revenues over (under) Expenditure $ 9,069 $ (10,185) $ (933) $ 86 $ 343 $ 1,399 33 Working Capital - Year End before CalPERS $ 29,834 $ 18,318 $ 16,545 $ 16,466 $ 16,644 $ 17,879 34 CALPERS Down Payment $ - $ 841 $ 165 $ 165 $ 165 $ 165 35 Working Capital - Year End $ 29,834 $ 17,478 $ 16,380 $ 16,301 $ 16,479 $ 17,714 36 Audit Adjustments $ (1,331) $ - $ - $ - $ - $ -
37 Operating Reserve $ 4,106 $ 4,652 $ 4,651 $ 4,650 $ 4,746 $ 4,847 38 Rate Stabilization $ 2,158 $ 2,231 $ 2,313 $ 2,475 $ 2,648 $ 2,741 39 UFL Trust Fund $ - $ 166 $ 176 $ 176 $ 176 $ 176
40 Unreserved Working Capital - Year End $ 23,569 $ 10,428 $ 9,241 $ 9,001 $ 8,909 $ 9,951 in thousands
Revised with Supplement
Budget Document Pg. 44
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Table U8: Sewer Fund Five Year Forecast
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Actuals Budget Budget Budget Budget Budget
REVENUES BY TYPE
1 Sewer Service Charges $ 11,699 $ 12,359 $ 12,792 $ 13,240 $ 13,703 $ 14,183 2 Utilities Base Charges $ 4,543 $ 4,653 $ 4,816 $ 4,984 $ 5,159 $ 5,339 3 Sales to Cal Poly $ 639 $ 992 $ 1,026 $ 1,062 $ 1,038 $ 957 4 Cal Poly Capacity & Resilience $ 244 $ 244 $ 244 $ 473 $ 473 $ 473 5 Development Impact Fees $ 3,849 $ 1,384 $ 1,190 $ 618 $ 600 $ 600 6 Industrial User Permits $ 9 $ 85 $ 85 $ 85 $ 85 $ 85
7 Investment & Property Revenue $ 10 $ 402 $ 50 $ 50 $ 50 $ 50 8 Long Term Debt Proceeds $ 20,212 $ 89,916 $ 427 $ - $ - $ - 9 State Grants $ 258 $ 3,470 $ - $ - $ - $ -
10 Miscellaneous Revenue $ 533 $ 397 $ 306 $ 312 $ 318 $ 325 11 Rate Assistance Subsidy $ - $ (100) $ (100) $ (100) $ (100) $ (100) 12 TOTAL $ 41,996 $ 113,801 $ 20,836 $ 20,724 $ 21,326 $ 21,912 13 EXPENDITURE BY CATEGORY
14 Salaries & Benefits $ 4,413 $ 4,911 $ 4,889 $ 4,992 $ 5,097 $ 5,204 15 Operating Expenditures $ 2,596 $ 3,817 $ 3,542 $ 3,968 $ 4,109 $ 4,257 16 Capital Outlay $ 37,956 $ 111,103 $ 5,738 $ 9,640 $ 3,498 $ 4,371 17 Debt Service $ 1,388 $ 1,384 $ 1,381 $ 1,382 $ 7,006 $ 7,099 18 Transfers Out $ 2,402 $ 2,368 $ 2,574 $ 2,702 $ 2,838 $ 2,979 19 TOTAL $ 48,754 $ 123,584 $ 18,125 $ 22,685 $ 22,548 $ 23,909 20 EXPENDITURE BY FUNCTION
21 General Government $ 2,402 $ 2,368 $ 2,574 $ 2,702 $ 2,838 $ 2,979 22 Wastewater Collection $ 2,837 $ 21,654 $ 6,529 $ 5,572 $ 4,103 $ 6,165 23 Environmental Compliance $ 225 $ 281 $ 282 $ 289 $ 296 $ 303 24 Water Resource Recovery $ 40,818 $ 96,068 $ 6,046 $ 11,327 $ 12,264 $ 11,547 25 Utilities Revenue $ 474 $ 320 $ 310 $ 319 $ 327 $ 336 26 Water Quality Lab $ 667 $ 870 $ 832 $ 852 $ 873 $ 894 27 Network Services $ 21 $ 134 $ 19 $ 15 $ 254 $ 36
28 Finance Non-Dept $ 124 $ 171 $ 103 $ 105 $ 107 $ 109 29 Wastewater Administration $ 1,186 $ 1,718 $ 1,429 $ 1,504 $ 1,487 $ 1,541 30 TOTAL $ 48,754 $ 123,584 $ 18,125 $ 22,685 $ 22,548 $ 23,909 31 CHANGES IN FINANCIAL POSITION
32 Working Capital - Beginning $ 40,988 $ 35,237 $ 24,589 $ 27,131 $ 25,001 $ 23,609 33 Revenues over (under) Expenditures $ (6,758) $ (9,783) $ 2,711 $ (1,961) $ (1,222) $ (1,998) 34 Working Capital - Year End before CalPERS $ 34,230 $ 25,453 $ 27,300 $ 25,170 $ 23,779 $ 21,611 35 CALPers Downpayments $ - $ 864 $ 169 $ 169 $ 169 $ 169 36 Working Capital - Year End $ 34,230 $ 24,589 $ 27,131 $ 25,001 $ 23,609 $ 21,442 37 Audit Adjustments $ 1,007 $ - $ - $ - $ - $ -
38 Operating Reserve - 20% $ 2,160 $ 2,496 $ 2,477 $ 2,609 $ 3,810 $ 3,908 39 Rate Stabilization $ 844 $ 900 $ 932 $ 964 $ 995 $ 1,024 40 UFL Trust Fund $ - $ 171 $ 180 $ 180 $ 180 $ 180
41 SRF Loan Reserve $ 2,953 $ 5,907 $ 5,907 $ 5,907
42 Unreserved Working Capital - Year End $ 28,273 $ 21,022 $ 20,588 $ 15,340 $ 12,717 $ 10,423 in thousands
Revised with Supplement
Budget Document Pg. 45
One‐time Ongoing
Water $ 115,980 $ 864,290
1 Source of Supply $ 3,500 $ 582,797
2 Other Contract Services ‐ $2,560 for Irrigation Suitability Analysis for RW, needed as WRRF processes change plus $3,500 permitting fee from RWQCB to move to Recycled Water General Order.
$ 2,560 3,500 $
3 Water Supply ‐ $488,829 of total increase is due to electrical cost increases as determined by PG&E. Approximately $70,000 of increase is related to staffing increases at Whale Rock which are passed through as operational costs.
$ 580,237
4 Water Admin $ 1,500 40,000 $
5 Drought Outreach ‐ This budget increase is being requested to accommodate drought‐related outreach which includes information about rebate programs, increased conservation messaging, and messaging about potential adopted by the State. Current budget exists to fund the Utilities Department's standard public outreach program and is not sufficient to accommodate drought‐ related public outreach.
$ 40,000
6 E&P: AutoCAD Software Plans ‐ Additional funding for AutoCAD Licenses for E&P Team (2 Licenses). This is utilized between Water and Wastewater and will be split 50/50 between Water and Wastewater Admin.
$ 1,500
7 Water Distribution $ 29,475 18,000 $
8 Communication Services ‐ Verizon ‐ Added cost due to cell phone and communication needs for staff. Staff originally intended that tablets and cell phones would utilize single data charge but this was not successful when implemented in the field.
$ 7,400
9 Construction Materials and Supplies ‐ Raw material costs projected to increase 25% including asphalt mix, base materials for road repair, cement and concrete mix, and sand and gravel. $ 5,075 10 Contract Services ‐ Due to increased recycled water cross connection inspections and management of City's cross connection control program by the County. Also includes increase in costs for hauling of spoils from leak repairs, which are largely due to fuel cost increases. $ 10,000
11 Education and Training ‐ Education and Training budget was removed due to COVID‐19, will provide for approximately $1,000 per employee $ 7,000 12 Office Supplies ‐ Reduction due to prior purchase of phones for operators. Funding not needed until phones are due for replacement. $ (2,000)
13 Safety Materials and Supplies ‐ $20,000 for two (2) new Self Contained Breathing Aparatus (SCBA) packs and a spare bottle. The team uses these for safely entering confined spaces for rescue purposes and the existing equipment has exceded its lifecycle. This will be purchased through Fire's RFP in 22/23.
$ 20,000
14 Water Resources $ ‐ 30,000 $
15 Materials and Supplies ‐ Additional funding related to water conservation rebate and give away materials. Prior City programs included toilet rebate program and washing machine rebate program.
$ 30,000
16 Water Treatment Plant $ 232,268 20,000 $
17 Chemicals ‐ Increase in chemical cost for water treatment process including Aluminum Sulfate, Sodium Hydroxide, Polymers Coagulant, Actiflo Ballast Sand, Chlorine, Filter Aids, Sodium Silico Fluoride, and Liquid Oxygen.
$ 186,308
18 Contract Services ‐ Additional costs to contract services including after‐hours security patrols ($3,840), hazardous material removal ($2,000), diesel fuel for generator ($28,800), increases for the Annual Water Analyses mandated by Division of Drinking Water ($2,250), and uniform and linen services for new operator ($1,035).
$ 38,675
19 Protective Clothing ‐ $20,000 for two (2) new Self Contained Breathing Aparatus (SCBA) packs and a spare bottle. The team uses these for safely entering confined spaces for rescue purposes and the existing equipment has exceded its lifecycle. This will be purchased through Fire's RFP in 22/23. $ 20,000
Appendix U‐1: Utilities Operating Budget Changes FY 2022‐23 APPENDIX U‐1: Utilities Operating Budget Changes
Enterprise Funds – Water and Sewer
Budget Document Pg. 46
One‐time Ongoing Appendix U‐1: Utilities Operating Budget Changes FY 2022‐23 20 Solid Waste Services ‐ Increase costs due to anticipated 25% cost increase. $ 1,285 21 Special Equipment Replacement Parts ‐ Due to specialized equipment there is the need for four (4) dissolved ozone analyzer probe tips (4 per year @ 2500) $ 6,000 24 Utility Billing (50% Water Fund Share) $ 4,480 $ 18,250 25 Other Contract Services ‐ Ongoing cost increase of $12,500/year for 500 additional water meters in 2022‐23. One‐time cost increase of $8,960 for contract staffing for Utility Billing support. $ 6,250 4,480 $ 26 Postage ‐ Increase due to cost of postage and increase in number of customers. 9,000 $ 27 Print and Reproduction Costs ‐ Increase due to material cost increases and increase in number of customers. $ 3,000
28 Sewer $ 246,287 24,480 $
29 Wastewater Admin $ 2,500
30 Software Licensing and Maintenance Agreements ‐ Additional funding for AutoCAD Licenses for E&P Team (2 Licenses). This is utilized between Water and Wastewater and will be split 50/50 between Water and Wastewater Admin.
$ 2,500
31 Wastewater Collections $ 15,000 20,000 $
32 Data Processing Services ‐ The team uses IT Pipes for sewer inspections. The annual software licensing has increased due to a deferred upgrade. The prior version of the software was approximately ten years out of date and no longer supported. $ 15,000
33 Safety Materials and Supplies ‐ $20,000 for two (2) new Self Contained Breathing Apparatus (SCBA) packs and a spare bottle. The team uses these for safely entering confined spaces for rescue purposes and the existing equipment has exceded its lifecycle. This will be purchased through Fire's RFP in 22/23.
$ 20,000
34 WRRF $ 210,537
35 Chemicals ‐ Increase in chemical cost for wastewater treatment process including Sodium hypochlorite, hydrogen peroxide, and citric acid. Chemical costs have increased due to supply chain shortages and there is no immediate alternative. Moving forward, the WRRF's chemical consumption will be significantly reduced as the new facility is commissioned. $ 180,837
36 Other Contract Services ‐ Contract cost increase for security services with Spectre Security. New vendor due to prior vendor not showing up. Additionally, security patrols at the WRRF have been increased from once to four times nightly due to weekly security incidents. Its expected that this frequency will be reduced after the attention associated with construction is reduced. $ 29,700
36 Other Contract Services ‐ Contract cost increase for security services with Spectre Security. New vendor due to prior vendor not showing up. Additionally, security patrols at the WRRF have been increased from once to four times nightly due to weekly security incidents. Its expected that this frequency will be reduced after the attention associated with construction is reduced. $ 29,700
24 Utility Billing (50% Sewer Fund Share) $ 4,480 $ 18,250 25 Other Contract Services ‐ Ongoing cost increase of $12,500/year for 500 additional water meters in 2022‐23. One‐time cost increase of $8,960 for contract staffing for Utility Billing support. $ 6,250 4,480 $ 26 Postage ‐ Increase due to cost of postage and increase in number of customers. 9,000 $ 27 Print and Reproduction Costs ‐ Increase due to material cost increases and increase in number of customers. $ 3,000
37 Grand Total $ 1,110,577 140,460 $
Enterprise Funds – Water and Sewer
Budget Document Pg. 47
Parking Fund
Section 4: Parking Fund
Overview
As one of the City’s Enterprise Funds, the Parking Services Program finances its operations through three primary sources; 1) rates and fees charged for parking services; 2) property lease income, and 3) onetime income from payments such as “Parking in Lieu fees”. According to City fiscal policies1 , the Parking
Fund’s revenues must be sufficient to cover operations, capital asset improvements, maintenance, debt obligations, and appropriate reserve levels to keep the fund healthy and prepared for unforeseen and long-term funding needs.
Discussed in greater detail below, there is a strong need for the Parking Fund to implement previously Council approved reduction of free parking at the parking structures and the adoption of rate increases previously foreshadowed for Council and the Community while maintaining the hours of operation approved by Council with the 2021-23 Financial Plan. The need for Parking rate increases have been discussed in 1) 2021-23 Financial Plan, 2) Mid-Year 2021-22 Financial Plan, and again in this 3) 2021-22 Budget Supplement.
These parking rate increases are needed and are largely driven by the anticipated cost increases and corresponding debt and debt ratios, forthe construction of the new Cultural Arts District Parking Structure (formerly referred to by its cross-street location as Palm/Nipomo), as the costs for this structure are increasing due to unprecedented construction cost escalation. Without these rate increases, the Parking Fund will not be able to build the new Cultural Arts District Parking Structure. While rate increases are not recommended lightly, these rate increases are necessary to meet Council objectives including the Downtown Concept Plan, Economic Recovery from the Pandemic, and Downtown Vitality and even with these rates increases parking cost in the downtown are both comparable to other parking cost in the area or lower as shown below in Table P1. Staff is aware that both Cal Poly and Paso Robles are considering fee rate increasing in the coming year.
In addition to parking rate increases, parking citation penalties or fines are recommended to be increased.
Parking fines are meant to be high enough to deter unwanted behavior and the fine amounts for the violations listed in Table P1 are no longer effective at deterring unwanted behavior. Parking citation penalties are recommended to be effective July 1st, 2022. It should be noted that while citation do provide a revenue source for the parking fund, that revenue is offset operating cost to staff parking enforcement officers as well as $13 of every citation fine amount is directed to state and county agencies for service fees and surcharges.
1 2021 Annual Comprehensive Financial Report page xvii (located on page 23 of the PDF under Budgetary Policies) https://www.slocity.org/home/showpublisheddocument/31535/637758729982570000 Budget Document Pg. 48
Parking Fund
Table P1: Average Parking
Hourly Rate and Fines
Current Parking
Rate
Effective
January 2,
2023
Effective
July 1, 2023
Effective
July 1, 2025
1 On-Street
2 San Luis Obispo $ 1.63 $ 1.75 $ 3.50 $ 4.00
3 Cal Poly $ 2.50 --- --- ---
4 Pismo Beach $ 5.50 --- --- ---
5 Paso Robles $ 1.00 --- --- ---
6 Parking Structures Hourly Rate
7 San Luis Obispo $ 1.50 $ 1.50 $ 3.00 $ 3.00
8 Cal Poly $ 2.50 --- --- ---
9 Pismo Beach $ 5.00 --- --- ---
10 Fines
11 San Luis Obispo $ 40.00 --- --- ---
12 parking after session is expired $ 40.00 $ 45.00
13 no standing, stopping, or
parking within intersection $ 40.00 $ 60.00
14 no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 33.00 $ 60.00
15 Cal Poly --- --- --- ---
16 parking after session is expired $ 55.00
17 no standing, stopping, or
parking within intersection $ 55.00
18 no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 55.00
19 Pismo Beach --- --- --- ---
20 parking after session is expired $ 80.00
21 no standing, stopping, or
parking within intersection $ 35.00
22 no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 54.00
23 Paso Robles --- --- --- ---
24 parking after session is expired $ 33.00
25 no standing, stopping, or
parking within intersection $ 139.00
26 no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 33.00
Budget Document Pg. 49
Parking Fund
The FY2022-23 budget was developed based on a review of previous years’ revenues and expenditures, forecasting tied to approved revenue enhancement strategies, operating and capital needs, and future debt obligations. Since the onset of the COVID-19 pandemic, Fund expenditures have exceeded revenues and are projected to do so in FY2022-23 due to continued impacts of the pandemic, needed capital investment to modernize the Parking Services program, and cost preparing for the construction of the City’s fourth parking structure. The Parking Fund is positioned to sustain this short-term structural deficit by using working capital. However, measures must be taken to mitigate this structural deficit; if it continues past FY2022-23, it will jeopardize the City’s ability to secure financing for the construction of the Cultural Arts District Parking Structure (formerly referred to by its cross streets of Palm/Nipomo).
Shown in table P7 is the required debt ratios for lenders. For future debt obligations a ratio of 130% or greater is required.
Expenditures Continue to Exceed Revenues as Pandemic Impacts Linger This Parking Fund summary provides projected revenues and expenditures for FY2021-22, the supplemental budget for FY2022-23, and revised financial forecasting through FY2026-27 based on the assumed implementation of future rate and fee changes.
As Council has been informed throughout the pandemic, the Parking Fund has operated at a deficit, expenditures continue to exceed revenues and are projected to do so until FY2023-24 as shown in Table P11. The primary reason for this arises from the diminished demand for paid parking in Downtown and the pandemic’s ongoing impacts on social, office, and retail activities. A secondary reason for this is that the continued modernization of the Parking Services program has required significant investment in equipment and facilities which has resulted in increased capital and operating expenditures. At the time of the writing of this report, revenues are trending upward but have not yet reached pre-pandemic levels.
The timeline for a full recovery of downtown parking revenues, while unknown, is expected to parallel the recovery from the pandemic and the changes in consumer and workforce behavior.
The uncertainty of the rate at which Parking revenues are expected to recover has been considered in concert with the debt obligations needed to finance the Cultural Arts District Parking. Due to projected revenue shortfalls and anticipated increased construction costs for the new parking structure, staff has forecasted three rate increases occurring on January 2, 2023 and July 1st in 2023 and 2025 necessary to maintain a balanced Parking Fund. These rate increases will be needed to secure the financing for the construction of the parking structure (including all phases of design, site preparation, and vertical construction) which is now estimated at $53 million.
Cultural Arts District Parking Structure and Debt Service Ratio Requirements for the Fund
As previously mentioned, the Parking Fund’s expenditures have exceeded its revenues throughout the pandemic. To assist the local economy and businesses, the fund temporarily suspended collection of revenues and created new loading zones and parklets and offered free parking during the holiday shopping season. Over the past two years, the fund lost approximately $750,000 in revenues through these supportive efforts. Due to a then existing working capital (much of which was being built up to help fund the construction of the City’s fourth parking structure, the Cultural Arts District Parking Structure), the Parking Fund was able to maintain service levels, its capital improvement schedule, and its 20% operating reserve despite operating at a deficit for three consecutive fiscal years. The prolonged impacts Budget Document Pg. 50
Parking Fund
of the deficit has resulted in the fund falling short of its debt service ratio coverage2. The Fund’s debt service ratio is a critical component for future debt funding and could jeopardize the fund’s ability to secure a loan from the California Infrastructure and Economic Development Bank (I-Bank) or on the open market (e.g. bond sales) if not addressed by increasing fund revenues. Phase 1A and Phase 1B, “site preparation” of the Cultural Arts District Parking Structure are scheduled to begin in Fiscal Year 2022-23.
This effort, which entails grading and site demolition, will be paid for from existing working capital. Phase 2, “vertical construction” is scheduled to begin in Fiscal Year 2023-24 and will be debt funded. The debt proceeds and capital outlay necessary for the structure are included in the updated fund analysis show in Table P11.
The cost of construction is anticipated to see further increases during Phase 1 and Phase 2 that are not currently shown; thus, it is important that the City plan for and be prepared for bonding in excess of the current estimated cost of construction. An updated construction estimate was prepared by a consultant in March 2022 showing a projected increase of over 11% of the construction cost for the Cultural Arts District Parking Structure. Costs are subject to further change as the design is finalized, and staff begins the process of bond issuance to finance construction. The process of providing debt proceeds from the issuance of bonds takes approximately six months. To begin construction in the Fall of 2023 staff plans to initiate this process in December 2022. Due to current economic uncertainty caused by the pandemic and global instability, staff is anticipating interest rates to range from 3% to 5% at time of bond issuance which is significantly higher than initially forecast.
Operating Program Expenses
As shown in Table P2, a summary of the revised 2021-23 Financial Plan operating budget projections for the Parking Fund. Expenses are increased due to the recently completed class and compensation study and the need for increased security services to maintain a safe environment in the parking structures downtown. Previous years’ actuals for staffing have been significantly lower than the budgeted amount as the Parking Services Program has struggled to fill and keep key positions. Parking has been undergoing a transition to credit card pay stations in the parking structures and paid parking in lots and streets which in turn has resulted in an increase in merchant fees paid due to the higher volume of credit card payments.
The Parking Services Program is requesting approval for a full-time supervisor position that will oversee the maintenance and operations of the structures, surface lots, and on-street parking spaces. The position being requested would supervise the Parking Meter Repair Worker, new Facilities Maintenance Workers, Lead Attendants, and the Parking Ambassador positions; all of which currently report directly to the Parking Services Supervisor.
Centralizing all maintenance and operations of these key parking assets would allow the Parking Services Supervisor to focus on contract management, budgeting, and the implementation of CIP Projects. The Parking Services Program is also requesting the reclassification of the Parking Services Supervisor to an Assistant Parking Manager; this position would oversee the Parking Maintenance Supervisor and Supervising Parking Enforcement Officer, as shown in Figure 1 below. This position change is important because the Parking Maintenance Supervisor and Supervising Parking Enforcement Officer would both be reporting to the Assistant Parking Manager. In addition to these supervisory responsibilities the Assistant 2 Debt financing requires the City’s net income and depreciation be 130% of its annual debt obligation Parking Manager would continue assisting with administrative duties such as budgeting, contract management and CIP delivery.
Budget Document Pg. 51
Parking Fund
Figure 2 – Proposed Organizational Chart for the Parking Services Program Table P2: Parking Fund Operating Expenditures by Type
Significant Operating Budget Changes
Drinking Fountain: $16,800 is needed to replace a dilapidated water fountain located at the Marsh Street parking structure on Pacific Street with a new water hydration station that will service the needs of the downtown community.
Row Labels FY 2021 Actuals FY 22 Budget 2023 Adopted 2023 Revised Budget Change % Change
1 Staffing 1,126,434 2,022,327 1,802,766 1,917,920 $ 115,155 6% 2 Contract Services 682,982 751,806 449,265 584,065 $ 134,800 30% 3 Other Operating Costs 323,855 577,218 580,133 623,458 $ 43,325 7% 4 Transfers 990,911 1,105,120 1,122,518 1,263,622 $ 141,104 13% 5 Grand Total $ 3,124,182 $ 4,456,471 $ 3,954,682 $ 4,389,066 $ 434,384 11% 2021-23 Financial Plan
Budget Document Pg. 52
Parking Fund
Parking Structure Equipment Extended Warranty: $28,000 would cover an extended warranty for newly installed equipment in City parking structures. The cost of equipment maintenance and replacement is anticipated to be greater than the cost of the extended warranty. Having the extended warranty in place would enable the Parking Services Program to keep equipment in good working order for the community and would minimize payment collection issues.
Marketing and Communication: $30,000 is needed to provide the proper resources for the Parking Services Program to effectively inform the community of operational initiatives and gain valuable input from stakeholders. These resources should improve transparency of the goals of the Program while improving community engagement.
Reclassification of Parking Coordinator Position to Parking Maintenance Supervisor: $6,500 is for the reclassification of an existing parking coordinator position that would oversee the maintenance and operations of the structures, surface lots, and on-street parking spaces. The position being requested would supervise the Parking Meter Repair Worker, new Facilities Maintenance Workers, the Lead Attendants, and the Parking Ambassador positions.
Reclassification of Parking Services Supervisor Position to Assistant Parking Manager: $20,000 would reclassify the existing Parking Services Supervisor position to an Assistant Parking Manager position. The Supervising Parking Enforcement Officer and proposed Parking Maintenance Supervisor positions would report to the Assistant Parking Manager. Additional responsibilities include contract management, budgeting, and the implementation of CIP projects.
Overtime: The Parking Program requires an additional $12,000 for overtime as the need has exceeded the budgeted amount for the last three years. This need is tied to staff shortages, an expansion of enforcement hours and increased service levels at the parking structures.
Credit Card Merchant Fees: An additional $13,325 is needed due to Parking’s transition to credit card pay stations in the parking structures and for lots and streets. This has resulted in an increase in merchant fees paid due to the higher volume of credit card payments.
Table P3: Parking Fund Operating Budget Changes One-time Ongoing 1 Drinking Fountain $ 16,800
2 Parking Garage Equipment Extended Warranty $ 28,000
3 Overtime $ 12,000
4 Credit Card Merchant Fees $ 13,325
5 Marketing and Outreach $ 30,000
6 Fund New Parking Maintenance Coordinator $ 20,000
7 Fund Reclass of Parking Services Supervisor $ 6,500
8 Total $ 44,800 $ 81,825
Proposed Changes to the Capital Improvement Plan
Pay Station Installations - Upper Monterey St.: This request for $122,000 would cover the installation of new pay stations and associated signage on upper Monterey St. This effort would implement an approved revenue enhancement strategy included in the 2021-23 Financial Plan.
Budget Document Pg. 53
Parking Fund
Pay Station Installations - Railroad Square Parking Lot: This request for $66,200 would cover the installation of new pay stations and associated signage in the Railroad Square parking lots. This effort would implement an approved revenue enhancement strategy included in the 2021-23 Financial Plan.
Pay Station Installations - Downtown: This request for $800,000 would continue the build out of multispace pay stations that will replace more single space meters. This funding will replace about one third of the remaining single space meters. The multi-space pay stations have been adopted by the customers and continuing this effort will provide a more consistent customer experience as well as providing what patrons expect in today’s wireless, App-dominated world. Though staff had not planned on building out the system until the 2023-25 Financial Plan, wireless providers have informed staff that existing single space meters will no longer be supported by their 3-G infrastructure. Staff concluded that a continuation of the work to switch to multi-space station would be the most cost-effective and customer-oriented approach. This request would essentially advance the funding and therefore free up future funding for other needs. With multi-space meter installations, single space meter poles will be removed concurrently and existing single space meter poles without meters will be prioritized for removal.
Table P4: Parking Fund CIP Changes
1 Upper Monterey Paid Parking $ 122,000
2 R/R Square Paid Parking $ 66,200
3 Pay Station Installation $ 800,000
4 Total 988,200
Revenues
As an enterprise fund, the Parking Services Program finances its operations through rates and fees charged for parking services, property lease income and one-time incomes such as Parking In-Lieu fee payments.
According to City fiscal policies, rates must be sufficient to cover operations, capital asset improvements and maintenance, debt obligations and maintain appropriate reserve levels to keep the fund healthy and prepared for unforeseen and long-term funding needs. The fund is not able to meet these requirements at current rates given the additional debt service and operating costs associated with the Cultural Arts District Parking Structure.
Revenues from service charges are still recovering from the COVID-19 pandemic, it is still unknown when parking demand will return to normal levels. For FY2022-23, revenues are projected to be below what was initially forecasted in the 2021-23 Financial Plan for FY2021-22. Parking meter and structure revenues are heavily reliant on downtown activity and thus are subject to variances tied to public health and economic factors. Due to large increases in the estimated construction cost for the Cultural Arts District Parking Structure brought on by labor and materials shortages as well as high inflation, recovering revenues and rate increases are critically needed so the fund can meet its debt obligation requirements despite lower-than-normal demand. Staff is proposing three rate increases occurring on January 2, 2023 and July 1st in 2023 and 2025 at the proposed rate schedule as shown in Table P6.
Budget Document Pg. 54
Parking Fund
It should be noted that there is some loss in revenue associated with customers leaving parking structures after hours, or when not staffed. There is a technologic solution to this issue and the Parking Services Program is working to implement a gateless solution to address these issues for all parking structures.
While this work is important, this project delivery is limited based up CIP delivery staffing discussed in other sections of this document.
Key Assumptions
1. Parking utilization is expected to reach pre-pandemic levels in FY2023/24
2. Cultural Arts District Parking Structure are anticipated to exceed $53M
3. No changes to parking enforcement hours
4. Full implementation of adopted revenue enhancement strategies approved in the 2021-23 Financial Plan
5. Adoption of rate increases as shown below in Table P6 and included in the parking fund’s longterm forecast Proposed Parking Rate Increases
Due to the drastic escalation in the projected cost of the Cultural Arts District Parking Structure and reduced parking demand, staff incorporated rate increases needed to meet the required debt service obligation and maintain a balanced budget. These rate increases were calculated by forecasting the Parking Program’s operating expenditures, debt service, and parking demand over the next five fiscal years. Based on the forecasted demand these increases are necessary to meet the 130% revenue to expenditure debt service ratio as required by I-Bank or possible other lender on the open market for current debt and debt issuance to fund the Cultural Arts District Parking Structure construction costs.
Without these rate increases the Parking Fund will not be able to sustain the additional debt obligation for the escalated costs of the Cultural Arts District Parking Structure.
Parking rates are charged based on location for meters and all structures are at the same rate. Approved operational hours are as follows: Mondays – Saturdays: 9:00 am – 9:00 pm; Sundays: 1:00 pm – 9:00 pm.
Any reductions to operational hours would require additional hourly rate increases beyond what is proposed to offset that change.
Table P5: Parking Revenues ACTUAL Budget BUDGET PROJECTED PROJECTED PROJECTED 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
REVENUES
Service Charges
1 Parking Meter Revenues 1,265,085 1,940,900 2,268,500 4,876,000 4,876,000 5,688,700 2 Parking Structure Collections 347,873 835,300 2,030,950 4,647,100 4,793,400 5,060,700 3 Long-Term Parking Revenues 483,346 547,800 844,900 695,300 766,000 768,700 4 Lease Revenues 497,879 459,200 487,800 456,300 456,300 456,300 5 Parking In-Lieu Fees 10,691 20,600 20,600 20,600 20,600 20,600 6 Total Services Charges 2,604,874 3,803,800 5,652,800 10,695,300 10,912,300 11,995,000 7 Fines & Forfeitures 718,173 717,800 793,500 852,100 852,100 852,100 8 Interest on Investment 3,559 75,600 62,000 34,000 41,500 44,700 9 Other Revenues 22,000 14,100 25,000 17,100 15,500 19,200 10 TOTAL REVENUES 3,348,606 4,611,300 6,533,300 11,598,500 11,821,400 12,911,000 11 Proceeds from Debt Financing 46,315,169
12 TOTAL REVNEUES INCL. DEBT FINANCING 3,348,606 4,611,300 6,533,300 57,913,669 11,821,400 12,911,000 Budget Document Pg. 55
Parking Fund
Table P6: Parking Hourly Rate
Changes
Current Parking
Rate
Effective
January 2,
2023
Effective
July 1,
2023
Effective
July 1,
2025
1 Parking Meters Hourly Rate
2 Tier 1 (Super Core) $2.00 $2.00 $4.00 $5.00
3 Tier 2 (Core) $1.75 $2.00 $4.00 $5.00
4 Tier 3 (Outlying Areas) $1.25 $1.50 $3.00 $3.00
5 Parking Structures Hourly Rate
6 Hourly $1.50 $1.50 $3.00 $3.00
Figure 1 – Map showing locations of Tiered Parking Rates Shown in table P7 below is the required debt ratios for lenders. For future debt obligations a ratio of 130% or greater is required. As shown below future ratios all meet this requirement with the proposed rate increases. It is imported to display this information for lenders as it shows the funds ability to pay back future debt at the same time as taking care of existing assets. The increase in ratio from 2021-22 and 2022-23 is due to the parking fund debt restructuring. The General Fund assumed parking fund debt for the 919 Palm Parking Structure and the Parking Fund is servicing the debt obligation to the General Fund each year by transferring out funds. This transfer out is not included in the ratio calculation. This debt structure allows for a positive revenue to expenditures ratio which is required to fund the future Cultural Arts District Parking Structure.
Budget Document Pg. 56
Parking Fund
P7: Debt Ratio Met With Proposed Rate Increases
Capital Improvement Projects
The Capital Improvement Projects identified for FY2022-23 include annual asset maintenance projects for the City’s existing three parking structures. This investment is intended to extend the useful life of these assets as conveyed in the Condition Assessment and Management Plan (CAMP). In FY 2021-22 the Parking Program completed scheduled maintenance at the Marsh parking structure. Last fiscal year, in addition to its investment in asset maintenance, the Parking Program pursued capital projects focused on improving user experience. Single space meters were removed in the downtown as part of the roll-out of multi-space pay stations which helped to modernize the program and expand utilization of the sidewalks.
The program will look to complete the transition to multi-space pay stations during the next few years once debt service obligations are fully addressed. Pay stations provide an improved customer experience by offering contactless payment option and by allowing parking sessions to be extended from any pay station within the same rate zone (e.g. Tier 1, Tier 2, Tier 3 as shown in Figure 2).
While the Parking Services Program is well positioned to complete already programmed capital projects, concerns related to meeting debt coverage requirements has required the delay of additional projects such as replacement of all single space parking meters with multi-space parking meters. Continued progress has been made on the delivery of the Cultural Arts District Parking Structure CIP and the design is currently 95% complete.Once complete, the new structure will require an increased investment in asset maintenance. Staff is monitoring inflation and will continue to make the necessary adjustments to ensure the program can continue providing core services, maintain its infrastructure, and deliver the Cultural Arts District Parking Structure.
Capital Improvement Program Budget Summary
ACTUAL PROJECTED
EOY
BUDGET PROJECTED PROJECTED PROJECTED
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
1 Total Revenue $ 3,348,606 $ 5,229,400 $ 6,533,300 $ 11,598,500 $ 11,821,400 $ 12,911,000 2 Operating Expenditures $ (3,084,271) $ (3,719,000) $ (4,389,065) $ (4,701,700) $ (4,755,900) $ (4,800,700) 3 Net-Income $ 264,334 $ 1,510,400 $ 2,144,235 $ 6,896,800 $ 7,065,500 $ 8,110,300 4 Depreciation $ 663,100 $ 649,200 $ 648,900 $ 653,733 $ 653,733 $ 653,733 5 Debt Service $ 855,471 $ 415,085 $ 414,100 $ 4,193,200 $ 4,063,500 $ 3,935,300 6 Ratio -47% 207% 361% 149% 158% 189%
Table P7: Net-Income
to Debt Ratio
Table P8: Parking CIP Summary (in
thousands)
2021-22
Budget Carryover FY 2021-22 Total Budget*
2021-22
Actuals
2022-23
Budget
2023-24
Forecast **
2024-25
Forecast **
2025-26
Forecast
2026-27
Forecast
1 842 Palm Parking Structure Maintenance 400 800 1,200 55 400 400 400 400 $ 400 2 871 Marsh Street Structure Maintenance 400 693 1,093 30 400 400 400 400 $ 400 3 919 Palm Street Structure Maintenance 100 200 300 - 100 150 100 50 $ 50 4 Fleet Replacement: Public Works - - - - 130 37 - - $ - 5 IT Replacement 4 21 25 - 4 15 76 18 $ -
6 Major Facility Maintenance 5 - 5 - 25 - - - $ -
7 Cultural Arts District Parking Structure*** 850 1,907 2,757 20 5,582 46,315 - - $ - 8 Gateless Parking Equipment Install 40 - 40 - 90 - - - $ - 9 Multi-Space Pay Stations (New) - 87 87 137 800 - 1,200 - $ - 10 Upper Monterey Paid Parking (New) - - - - 122 - - - $ - 11 Paid Parking at Railroad Square (New) - - - - 66 - - - $ - 12 Total 1,799 3,708 5,507 241 7,719 47,317 2,176 868 $ 850 * Includes Carryover
** FY 22-23 will be financed through built-up working capital and FY 23-24 through debt financing ***Forecasted cost for phase I work in FY 22-23 is $6,969,000. This is subject to further change so additional budget is not being requested at this time.
Budget Document Pg. 57
Parking Fund
Cultural Arts District Parking Structure
Table P9 Cultural Arts District Parking Structure (formerly the Palm-Nipomo Parking Structure) Status Project is currently under design review.
Design review will be completed prior to building permit applications. This project is broken down into the following phases:
• Phase 1A PG&E Relocation – Project Design is 90% complete. Phase 1A expected to advertise for construction in Summer 2022, with construction work on this phase beginning Fall 2022. • Phase 1B Site Clearing and Demolition – Project is at the 95% design completion level. Staff will be applying for reviews for building permits for Phase 1B in the Spring of 2022.
Construction is scheduled to begin Spring 2023.
• Phase 2 Parking Structure Construction – Structure design is at 95% design completion level.
Staff will be applying for reviews for building permits in the Summer of 2022. Construction scheduled to begin Fall 2023 immediately following completion of Phase 1B Site Clearing and Demolition.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$ 2,808,9893 $ 1,315,529 $ 53,300,000 The total cost of construction of all phases of the Cultural Arts District Parking Structure
has increased by 11.83%, or $4.7 Million,
due to abnormal inflation/rising costs. This
percent increase is tracked by Engineering
News Record’s Construction Cost Index. This
budget estimate includes construction costs,
soft costs including construction
management services, and a 12%
construction cost contingency to address
unforeseen changes during the work. The
current projected cost to deliver the Cultural
Arts District Parking Structure is $53 million.
Phase 1 which entails utilities and
demolition work is estimated to cost $7
million and will be covered by working
capital. The cost of construction which is
estimated to be $46.3 million will be paid for
by debt proceeds.
Phase 1: Site Prep
using Working
Capital
$7,000,000
Phase 2:
Construction and
Debt Financed
$46,300,000
Debt Service
Debt service payments for the Cultural Arts District Parking Structure are scheduled to begin in FY2023- 24, the year the City will receive debt proceeds. Payments for the Parking Structure are estimated to be $3.7M annually but will depend on final debt financing terms. The next debt service to be retired is for the Marsh St. Parking Structure expansion which will occur in August 2031. The 919 Palm St. Parking Structure debt obligation will be retired in June 2036. As previously mentioned the General Fund assumed this debt obligation and the Parking Fund is servicing the debt via a transfer out from the Parking Fund to the General Fund.
3 Current project budget reflects ongoing design phase work, as well as Phase 1A PG&E Relocation construction costs.
Budget Document Pg. 58
Parking Fund
Parking Fund Financial Forecast
Unreserved Working Capital
City policy requires that the Parking Fund maintain a fund reserve that is 20 percent of operating expenditures. The balance beyond this required reserve is the unreserved working capital. The unreserved working capital has intentionally been built up in anticipation of the Cultural Arts District Parking Structure. Phase 1A and 1B of the Cultural Arts District Parking Structure construction which entail utility work, grading and site demolition will be entirely covered by the current unreserved working capital. Upon construction completion of the parking structure, Parking’s operating costs will increase as will the minimum level of investment in asset maintenance. Staff will continue to closely monitor its unreserved working capital to ensure resources are being appropriately used to support the programs resiliency and sustainability while at the same time providing the optimal customer experience.
Long-Term Strategy
The Parking Program will continue to closely monitor trends that impact revenues. Staff is focused on maintaining the fund’s health while continuing to provide core services, improve customer experiences and sustain the financing of a generational capital project. The fund is continuing to weather the impacts of the COVID-19 pandemic and unprecedented inflation. Careful planning and strategic decision making have enabled the fund to bear these challenges thus far, however it cannot sustain the additional costs of the Cultural Arts District Parking Structure without adjustment.
Throughout the pandemic, the Parking Services Program has worked to provide an unparalleled level of outreach and communication to the community through local, social, and print media in addition to direct infield customer engagement. Through these efforts staff have identified the increased need for communication and are requesting a $30,000 (see Table P3) increase to the communications budget of $5,200 that are used to inform the community about rate, operational, enforcement and special offerings.
With the assistance of the Public Communications Manager, the Program has developed a Communication Plan that is aimed at maximizing trust and confidence while increasing awareness of the Parking Services Program’s much overdue modernization efforts and how parking benefits the community. The Program has contracted with a communications consultant to assist with creation and distribution of communication materials throughout the remainder of the calendar year. Communication needs, and emphasis will continue to be a priority for the Parking Services Program in the long-term as technology evolves and the City’s fourth parking structure, the Cultural Arts District Parking Structures, is constructed and begins operations. Communications cost directly related to the construction of the Cultural Arts District Parking Structure will be included in the project budget.
Table P10: Debt Service 2020-21
(Actuals)
2021-22
(Budgeted)
2022-23
Supplement
2023-24
Projected
2024-25
Projected
2025-26
Projected
2026-27
Projected
1 Marsh Expansion $ 416,071 $ 415,085 $ 414,068 $ 413,021 $ 411,941 $ 410,829 $ 409,682 2 919 Palm $ 439,400 $ 440,193 $ 437,509 $ 439,095 $ 438,668 $ 437,982 $ 335,959 3 Cultural Arts District Parking Structure $ 3,782,400 $ 3,653,800 $ 3,526,800 $ 2,362,200 4 Total $ 855,471 $ 855,278 $ 851,577 $ 4,634,516 $ 4,504,409 $ 4,375,610 $ 3,107,841 Budget Document Pg. 59
Parking Fund
Table P11: Parking Fund Five Year Forecast
ACTUAL Budget BUDGET PROJECTED PROJECTED PROJECTED
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
REVENUES
Service Charges
1 Parking Meter Revenues 1,265,085 1,940,900 2,268,500 4,876,000 4,876,000 5,688,700 2 Parking Structure Collections 347,873 835,300 2,030,950 4,647,100 4,793,400 5,060,700 3 Long-Term Parking Revenues 483,346 547,800 844,900 695,300 766,000 768,700 4 Lease Revenues 497,879 459,200 487,800 456,300 456,300 456,300 5 Parking In-Lieu Fees 10,691 20,600 20,600 20,600 20,600 20,600 6 Total Services Charges 2,604,874 3,803,800 5,652,800 10,695,300 10,912,300 11,995,000 7 Fines & Forfeitures 718,173 717,800 793,500 852,100 852,100 852,100 8 Interest on Investment 3,559 75,600 62,000 34,000 41,500 44,700 9 Other Revenues 22,000 14,100 25,000 17,100 15,500 19,200 10 TOTAL REVENUES 3,348,606 4,611,300 6,533,300 11,598,500 11,821,400 12,911,000 11 Proceeds from Debt Financing 46,315,169
12 TOTAL REVNEUES INCL. DEBT FINANCING 3,348,606 4,611,300 6,533,300 57,913,669 11,821,400 12,911,000 14 EXPENDITURES
15 Staffing 1,141,869 1,711,200 1,917,920 1,952,400 1,982,000 2,001,800 24 Contract Services 682,982 831,100 584,065 675,500 690,400 705,800 25 Other Operating Expenditures 268,520 498,000 623,458 526,500 536,600 546,900 26 General Government (CAP) 710,200 710,200 872,976 873,000 873,000 873,000 27 Operating Transfers Out 280,700 675,400 390,646 674,300 673,900 673,200 28 919 Palm Debt Service - - - - -
29 Total Operating Expenditures 3,084,271 4,425,900 4,389,065 4,701,700 4,755,900 4,800,700 30 Capital Improvement Plan Projects* 896,769 1,844,200 9,106,900 47,363,900 2,259,200 1,018,200 31 Debt Service 855,471 855,278 850,800 852,116 850,609 848,810 32 Cultural Arts District PS Debt Service - - - 3,782,400 3,653,800 3,526,800 33 Total Debt Service 855,471 855,278 850,800 4,634,516 4,504,409 4,375,610 34 TOTAL EXPENDITURES 4,836,510 7,125,378 14,346,765 55,848,000 10,668,900 9,345,700 55 CHANGES IN FINANCIAL POSITION
56 BEGINNING FUND BALANCE 14,892,628 13,185,700 10,671,600 3,941,735 5,860,504 6,891,704 57 Revenue Over/(Under) Expenses (1,487,905) (2,514,078) (6,686,865) 1,961,769 1,074,200 3,483,500 59 ENDING FUND BALANCE W/O CALPERS 13,404,723 10,671,622 3,984,735 5,903,504 6,934,704 10,375,204 60 Cal PERS Downpayment 219,055 43,000 43,000 43,000 43,000 61 ENDING FUND BALANCE 13,185,668 10,671,622 3,941,735 5,860,504 6,891,704 10,332,204 62 Policy Reserve Level - 20% 731,800 921,200 969,800 975,900 986,500 995,300 63 CalPERS Trust Fund - - 43,000 64,400 107,400 107,400 64 UNRESERVED FUND BALANCE 12,453,868 9,750,422 2,928,935 4,820,204 5,797,804 9,229,504 *Fiscal Year 2022-23 is the forecasted cost of construction, not the budgeted amount. 2021-23 Financial Plan
PARKING FUND LONG-TERM FORECAST
Budget Document Pg. 60
Transit Fund
Section 4: Transit Fund
Overview
As an enterprise fund, the Transit Program funds its operations entirely with state and federal subsidies and fare revenues. This consists of federal and state funding as well as local fare revenue generated through the sale of bus passes and a discounted fare agreement with Cal Poly. As projected in the 2021- 23 Financial Plan, revenues kept pace with escalating costs in Fiscal Year (FY) 2021-22 and are projected to continue to do so in FY2022-23. The noted caveat being that inflationary and wage pressures will require the City to closely monitor costs and revenues so that they remain balanced and any expansion of services (i.e. routes, reduced headways, duration of service) will require new revenues.
This report presents a review of the Transit Enterprise Fund for FY2021-22, and a forecast for FY2022-23 through FY2026-27. The forecast covers key issues and trends which could impact the overall health of the fund. Due to the receipt of federal funds in response to the COVID-19 pandemic, the Transit Fund remains in excellent health. Staff was able to secure $12.3 million in American Rescue Plan Act (ARPA) funds for Transit operations. Additionally, the City will be receiving $4.7 million in funding from the San Luis Obispo Regional Transit Authority for bus replacements. These funds have positioned the Transit Program to maintain and significantly accelerate its schedule of capital outlay; notably the scheduled replacement of its fleet with zero emissions buses to comply with state requirements. Staff is focused on securing additional funds to ensure the appropriate infrastructure is in place to support the electrification of Transit’s fleet. While these one-time grant funding opportunities are certainly helpful to address upcoming mandating fleet requirements and capital outlay, they are not sufficient to otherwise address the ongoing service needs and demands for shorter headways and prolonged service delivery during each day.
Constraints
Labor shortages have caused the Transit Program to shift to an alternative and a reduced schedule of routes. Staff plans on addressing this issue by leveraging federal dollars to boost wages and attract interest in driver vacancies with its contracted service provider. This will enable the Transit Program to offer a schedule of routes that reflects the returning ridership demand. While demand is trending upward, lower than anticipated demand in FY2021-22 resulted in lower costs from First Transit, LLC, (First Transit), the City’s transit operator. Staff is working on executing an amendment to its operations and maintenance agreement with First Transit to extend the agreement for an additional two-year term. This two-year term agreement is expected to adjust contractor wages to attract and retain drivers in a tight and competitive job market.
The Transit Program continues to dedicate a significant portion of its resources to servicing Cal Poly at a discounted rate. Staff is seeking to execute a new long-term agreement with Cal Poly that would result in quarterly payments based on level of ridership and proportionate contribution toward capital asset maintenance and replacement1
. This is a crucial work effort as Transit relies heavily on Cal Poly to hit its state required 20 percent fare-box ratio. Furthermore, as the Transit Program endeavors to achieve 1 While federal grants will help maintain and accelerate capital replacements; in the long term, capital costs need to be factored into operating revenues so that deferred replacement costs do not accumulate over time.
Budget Document Pg. 61
Transit Fund
compliance with the California Air Resource Board’s Zero Emission Goal for heavy duty vehicles, it is appropriate that Cal Poly contribute toward capital asset maintenance and replacement2 .
The influx of federal funds to support transit systems during the COVID-19 pandemic have given the Transit Program the ability to make significant strides in its transition toward an electric fleet. This funding will also be relied on to incentivize drivers to fill vacancies, enabling Transit to return to its standard level of service. Absent this funding, Transit would not have been able to replace buses in accordance with its bus replacement schedule nor would it be able to respond with contract change to address the current labor shortage. Staff is currently working with a consultant to analyze and review Transit’s operations and infrastructure to ensure the optimal program structure for providing quality services to the community.
This study will serve as a guiding document for how to navigate similar constraints in the future.
Discretionary Revenues for Electric Bus Purchases
The Transit Program successfully secured funding beyond its originally anticipated Federal Transit Administration (FTA) and Transportation Development Act (TDA) formula-based grant funding. $12.3 million in ARPA funding from the FTA was secured to support operations for the next three fiscal years.
This will free up FTA funds that were originally going to be used on operations and maintenance to be spent on electric bus purchases. The San Luis Obispo Regional Transit Authority secured funding from the FTA, $4.7 million of which will be allocated to the City for the replacement of fleet with electric buses.
Transit secured $285,000 in Low Carbon Transportation Operations Program grant funding that will be used for infrastructure costs related to the purchase and installation of electric bus charging units.
Key Assumptions
Transit’s forecast is based on previous year trends and upcoming operational changes. Staff continues to navigate constraints and opportunities arising from the COVID-19 Pandemic. Ridership levels and additional funding opportunities will be monitored closely. Assumptions made in the Transit Fund forecast are shown below.
1. Ridership will continue to trend upwards and reach pre-pandemic levels in FY2022-23.
2. A new long-term agreement with Cal Poly will be executed that more accurately reflects the cost of providing services and includes contributions toward capital asset maintenance and replacement
3. The Transit Fund will continue to receive formula based federal and state grants on an annual basis.
4. An amendment with First Transit, LLC will be executed that will reflect an increase in wages for drivers and operations staff.
Operating Expenses
Contract Services
In June 2016 the City Council approved the award of the Transit Operations and Maintenance contract to First Transit. The contract called for a base four-year term with the potential for additional extensions.
The City Council in May 2022 authorized the final amendment with First Transit, a two-year extension.
The terms of the agreement include a significant increase in costs tied to driver and operational staff 2 Cal Poly Transit Agreement negotiations are ongoing and staff hopes to return for Council action prior to the end of the fiscal year.
Budget Document Pg. 62
Transit Fund
wages. These increased costs will enable the Transit Program to increase service levels to match increasing ridership demand. The increased cost will be covered by discretionary ARPA funds. Current pricing for SLO Transit Services is in line with industry standards, however, it outperforms other transit providers in the region based on key performance indicators. Transit will be conducting a review of past performance and start planning future operational needs to craft the scope of work for a new operations and maintenance contract following the lapse of this last amendment.
Fuel
Fuel costs have steadily risen in FY 2021-22 and staff anticipates this trend to continue into the new fiscal year. This could serve as an additional impediment to providing adequate service levels. Should fuel prices increase significantly beyond staff projections, the program will either maintain alternative service levels, use undesignated working capital to cover the increased costs, or reduce capital expenditures. As Transit shifts to an electric fleet the impacts of volatile fuel prices will become less impactful. With only two electric buses being added to the fleet this year, the benefits in the short-term will be minimal3 .
General Government
City Staff is currently working on a cost allocation plan for Fiscal Year 2021-22, a minimal increase is anticipated from the previous fiscal year. The purpose of the cost allocation plan is to quantify the level of support operating departments, such as transit, receive from internal services departments funded through the General Fund.-. The Transit Fund is responsible for reimbursing the general fund for those services. The Cost Allocation Plan does impact the performance of the farebox ratio, as it is considered an operating expense.
Revenues
In accordance with the City’s fiscal policies transit rates are set based on targets tied to the Transportation Development Act, the City will strive to cover at least twenty percent of transit operating costs with fare revenues. While ridership was low, this did not inhibit the Transit Fund from meeting this twenty percent state requirement as the service level tied to the City’s operating and maintenance contract with First Transit is based on ridership demand. The Transit Fund is projected to finish FY 2021-22 with a balanced budget given decreased operating costs, and the receipt of both anticipated annual grants along with unanticipated state and federal discretionary grants. As noted above, staff is currently negotiating with 3 Currently SLO Transit operates 17 buses of which two are pending replacement by electric buses. Due to fuel pricing volatility, 50% of the diesel bus fleet or more will need to be replaced by electric transit vehicles to realize savings. The current electric vehicle replacement schedule is planned to replace two to three buses per year based upon available funding. The Current FTA lifecycle of a bus is 12 years, which means the more buses SLO Transit buys at one time would require that same expenditure in future years.
Table T1: Transit Operating
Budget 20-21 Actuals 21-22 Budget 22-23 Original Budget 22-23 Revised
Budget Change % Change
1 Staffing $ 313,020 $ 422,212 $ 372,314 $ 306,115 $ (66,198) -18% 2 Contract Services $ 2,414,328 $ 904,871 $ 2,895,950 $ 2,895,950 $ - 0% 3 Other Operating Costs $ 407,776 $ 3,407,654 $ 684,100 $ 684,513 $ 413 0% 4 Transfers $ 321,727 $ 226,183 $ 230,707 $ 365,544 $ 134,837 58% 5 Grand Total $ 3,456,850 $ 4,960,920 $ 4,183,071 $ 4,252,122 $ 69,051 2% 2021-23 Financial Plan
Budget Document Pg. 63
Transit Fund
Cal Poly to execute a new long-term agreement that more adequately reflects the cost to the Transit Fund to provide this service.
Federal Transit Administration
Federal Transit Administration (FTA) funding is based upon population and service level categories. SLO Transit is part of the Federally recognized SLO Central Urbanized Area that receives additional FTA funding for performing above industry standards, known as State Transportation Innovation Funding (STIC) funding. FTA funds are typically used for operating and preventative maintenance costs, however the influx of additional federal funds tied to COVID relief has freed these funds to be used for the purchase of electric buses. Coronavirus Aid, Relief, and Economic Security (CARES) Act funding covered Transit’s operating costs in FY2021-22 and ARPA funding will cover operating and preventative maintenance costs over the next three fiscal years. The ARPA grant funding allows the use of Federal 5307 funds that would typically be used for operating costs to be used for capital expenditures, specifically for the replacement of existing transit vehicles with new zero emission buses. This Federal 5307 funding coupled with additional grant funds secured by the San Luis Obispo Regional Transit Authority in the amount of $4.7 million specifically for the City’s Transit Program will fund the replacement of eight existing buses with new electric buses over the next several years. Given the required timeframe for both programming this funding and lead time for new buses, the City should start to see new buses from these grant funds in two years.
Transportation Development Act
The California Transportation Development Act (TDA) is comprised of two sources of funding for transportation programs. Local Transportation Funds (LTF) and State Transportation Assistance (STA). LTF is derived from a retail sales tax and STA is derived from a statewide excise tax on fuel. Both funds are distributed to the regions by the State. San Luis Obispo Council of Governments (SLOCOG) then allocates this amount regionwide to each of the cities in the County, the County, and the Consolidated Transportation Services Agency for the San Luis Obispo region. TDA funding was in line with staff projections in the 2021-23 Financial Plan and are projected to remain consistent. State revenue in FY2021- 22 is higher than usual due to grants from PG&E and the Air Pollution Control District. The APCD and Air Pollution Control District funds will reimburse the Transit Fund for part of the cost to install electric vehicle charging infrastructure.
Fare Revenue
Local revenue is generated from cash fares, pass sales, and an agreement with Cal Poly. The terms of the agreement entail payment from Cal Poly on a quarterly basis that is calculated by applying a discounted fare per Cal Poly rider. In Fiscal Year 2021-22 both general and Cal Poly ridership increased from the previous Fiscal Year. As ridership demand is increasing, staff is working to address labor shortages to ensure service levels reflect this increased demand. There is a requirement tied to the receipt of state funding that local revenue account for 20% of the transit operating budget.
Cal Poly plays a considerable role in the generation of local farebox revenues and the overall health of the Transit Fund. The current agreement with Cal Poly is scheduled to lapse on June 30, 2022. Staff is working with Cal Poly to reach an agreement based on levels of ridership and proportional contributions toward capital asset maintenance and replacement. Reaching agreement with Cal Poly will be critically important Budget Document Pg. 64
Transit Fund
and an equitable share of costs 4to ensure robust services to meet their Master Plan mode shifts, labor agreements and equity with other users.
Revenues Summary
Capital Projects
With the influx of federal funds staff will maintain its schedule of bus replacements with zero emission alternatives. Two electric buses were purchased in FY2021-22 and will be delivered in Fall 2022.
Additionally, work is underway to revise Transit’s capital outlay schedule to purchase and install the infrastructure necessary to support an entirely electric fleet. Chargers and zero emission buses will require a 1 to 1 ratio given most of the operational buses will need to charge every night so that they can be used during the day. This work is being funded by the Transit Fund’s unreserved working capital, state discretionary grant funding and federal ARPA funding. Part of the cost will be reimbursed by PG&E and the Air Pollution Control District. Transit will replace eight buses with zero emissions buses over the next several fiscal years.
New CIP for Office Space Improvements
To leverage operational synergies and common goals to serve resident and visitors’ transportation needs, and to free up space in the offices at 919 Palm Street for added CIP engineering staff, Transit staff will be relocating to the Parking Services Office Space. This will require tenant improvements at 1260 Chorro Street. A new CIP has been proposed for the Transit Fund in the amount of $250,000 to cover tenant improvements at 1260 Chorro Street. This would result in a consolidation of Transportation services, a 4 Using 2018 data as non-COVID ridership information for Cal Poly, Cal Poly paid $0.77 per ride while a general nonCal Poly rider fee is $1.50.
Table T2: Number of riders year
over year
General
Ridership Cal Poly Total Ridership
1 Fiscal Year 2018-19 342,000 609,000 951,000
2 Fiscal Year 2019-20 278,000 427,000 705,000
3 Fiscal Year 2020-21 142,000 37,000 179,000
4 Fiscal Year 2021-22 259,000 269,000 528,000
Table T3: Revenues Sum of FY
2021 Actuals
Sum of FY 22
Budget
Sum of 2023
Adopted
Sum of 2023
Revised
Budget
Sum of
Change
Sum of %
Change
1 TDA Revenue $ 1,379,861 $ 2,101,064 $ 1,729,374 $ 1,729,374 $ - - 2 STA Revenue $ 208,814 $ - $ 246,430 $ 311,567 $ 65,137 26% 3 Other State Grants $ 265,199 $ 550,000 $ - $ 50,000 $ - - 4 Low Carbon Operation Revenue $ - $ - $ - $ 291,000 $ 291,000 - 5 FTA 5307 (Capital) $ - $ - $ - $ - $ - -
6 FTA 5307 (Preventative Maintenance) $ - $ 248,349 $ - $ 202,581 $ 202,581 - 7 FTA 5307 (Operating) $ - $ 2,557,332 $ 1,462,600 $ 2,945,716 $ 1,483,116 101% 8 Other Federal Grants $ - $ - $ - $ 4,100,000 $ 4,100,000 - 9 Federal Stimulus Grants $ 4,189,680 $ 898,093 $ - $ - $ - - 10 Other Grants/Subventions $ - $ - $ - $ - $ - -
11 Bus Fare $ 478,000 $ 687,500 $ 800,000 $ 850,000 $ 50,000 6% 12 Cal Poly Transit Agreement Revenues $ - $ - $ - $ - $ - - 13 Interest on Investment $ 30,826 $ 30,826 $ 6,500
14 $ 6,552,380 $ 7,073,164 $ 4,238,404 $ 10,486,738 $ 6,191,834 246% Budget Document Pg. 65
Transit Fund
shared public counter, and an enhanced customer experience. Staff does not anticipate this relocation will have a significant impact on the Transit Programs operating budget. The Transit Fund will fund the necessary tenant improvements for the office space pay market rate rent to the Parking Fund for use of the space. This market rate rent cost will be included as a Transit Fund expense in the 2023-25 Financial Plan once costs and timeframe are better known.
Summary of Capital Improvement Plan
Changes in Financial Position
City policy requires that the Transit Fund maintain a minimum working capital balance that is 20 percent of operating expenditures. The working capital beyond this amount is considered unassigned. It is best practice for Transit operations to maintain a total working capital balance that could cover six months of operations. The unassigned working capital balance currently reflects the $12.3 million in ARPA discretionary funds that will be received over three years. Staff is working on updating the bus replacement schedule which would result in increased capital expenditures through Fiscal Year 2025-26 and will result in a lower unassigned working capital balance than is shown below.
Long-Term Strategy
Federal funding has mitigated previously held concerns about a shortfall of funding needed to deliver necessary capital projects. The Transit Fund is well-positioned to meet state requirements and City goals of attaining a zero-emission fleet and the infrastructure necessary to support it. Furthermore, the Transit Fund has sufficient funding to maintain its schedule of bus shelter replacements5 and will be exploring updating the same as well as other rider services to the shelters adjacent to City Hall. This funding will also be used to address the labor shortage by offering higher wages to drivers through its operations and maintenance contract with First Transit, LLC. The federal funding that made this possible is an anomaly, and previously held concerns on reliance on outside funding should be maintained. Staff will review recommendations provided in the Transit Program Analysis and Assessment to determine what adjustments need to be made to achieve greater long-term fiscal sustainability. To maintain fund health the Transit Program continues to pursue discretionary grants and seeks to reach more equitable terms in its service agreement with Cal Poly.
5 Staff will propose replacing shelters at City Hall in the 2023-25 Financial Plan as well as self-cleaning restrooms for transit users.
Table T4: CIP Summary 2021-22
Budget Carryover Total Budget Actuals 2022-23
Budget
2023-24
Budget
2024-25
Budget
1 40 Prado Rd. Bus Shelter Relocation $ 35,000 $ - $ 35,000 $ - $ - $ - $ - 2 Bus Replacements $ 1,935,916 $ 366,596 $ 2,302,512 $ - $ 1,910,000 $ 2,085,000 $ 2,085,000 3 Bus Shelter Replacement (91253) $ - $ - $ - $ - $ - $ 90,000 $ 90,000 4 IT Replacements $ 1,201 $ 3,063 $ 4,264 $ - $ 3,157 $ - $ - 5 Transit Auto Location System (91606) $ - $ 82,343 $ 82,343 $ - $ - $ - $ - 6 Transit Facility EV Charging Infrastructure $ 651,824 $ - $ 651,824 $ 29,878 $ - $ - $ - 7 Bus Yard Parking Lot Maintenance $ - $ - $ - $ - $ 500,000 $ - $ - 8 Bus Wash Replacement $ - $ - $ - $ - $ 450,000 $ - $ - 9 Transit Supervisor ADA EV Van $ 70,000 $ - $ 70,000 $ - $ - $ - $ - 10 Vault Room Addition Study $ - $ - $ - $ - $ 15,000 $ - $ - 11 Transit Yard Solar $ - $ 22,077 $ 22,077 $ - $ - $ - $ - 12 1260 Chorro Tenant Improvements $ - $ - $ - $ - $ 250,000 $ - $ - 13 $ 2,693,941 $ 474,080 $ 3,168,020 $ 29,878 $ 3,128,157 $ 2,175,000 $ 2,175,000 Budget Document Pg. 66
Transit Fund
Table T5: Long-Term Forecast Actual
2020-21
Budget
FY2021-22
Revised Budget
FY2022-23
Projected
FY2023-24
Projected
FY2024-25
Projected
FY2025-26
Fund and/or Revenues
1 Federal - 5307 Operating $ - $ 2,557,332 $ 2,945,716 $ 3,004,630 $ 3,064,723 $ 3,126,017 2 Federal -5307 Preventative Maintenance $ - $ 248,349 $ 202,581 $ 206,633 $ 210,765 $ 214,981 3 Federal - 5307 Capital $ 1,384,000 $ - $ - $ - $ - $ - 4 Federal - Cares Act $ 2,805,680 $ - $ - $ - $ - $ -
5 Federal - ARP (American Rescue Plan) Formula $ - $ 898,093 $ - $ - $ - $ - 6 State TDA (Transportation Development Act)
STA $ 208,814 $ 305,458 $ 311,567 $ 317,799 $ 324,154 $ 330,638 7 State TDA LTF $ 1,379,861 $ 1,787,606 $ 1,729,374 $ 1,763,961 $ 1,799,241 $ 1,835,226 8 State TDA Allocated to RTA, SLOCOG and Other
Off-the-Top Obligations* $ 690,993 $ 633,596 $ 646,268 $ 659,193 $ 672,377 $ 685,825 9 State - APCD (Air Pollution Control District) $ - $ 500,000 $ - $ - $ - $ - 10 PG&E Grant $ - $ 50,000 $ 50,000 $ - $ - $ -
11 Farebox Revenue $ 328,000 $ 150,000 $ 200,000 $ 240,000 $ 250,000 $ 260,000 12 Cal Poly Agreement $ 150,000 $ 537,500 $ 650,000 $ 900,000 $ 900,000 $ 900,000 13 State - SB1 $ 8,468 $ 8,000 $ - $ 100,000 $ 100,000 $ 100,000 14 State - LCTOP (Low Carbon Transit Operations
Program) $ 256,731 $ - $ 291,000 $ 75,000 $ 75,750 $ 77,265 15 ARPA Discretionary $ - $ - $ 4,100,000 $ 4,100,000 $ 4,100,000 $ - 16 Interest on Investment $ 30,826 $ 30,826 $ 6,500 $ 6,630 $ 6,763 $ 6,898 17 TOTAL REVENUES $ 7,243,373 $ 7,706,760 $ 11,133,006 $ 11,373,846 $ 11,503,773 $ 7,536,848 18 19 Expenditures & Obligations
20 Staffing $ 313,020 $ 358,181 $ 306,115 $ 315,299 $ 324,758 $ 334,500 21 Contract Services $ 2,414,328 $ 3,470,217 $ 2,895,950 $ 2,982,829 $ 3,072,313 $ 3,164,483 22 Fuel $ 204,966 $ 435,034 $ 320,000 $ 326,400 $ 332,928 $ 339,587 23 Maintenance $ 133,171 $ 269,453 $ 240,000 $ 244,800 $ 249,696 $ 254,690 24 Other Operating Expenditures $ 69,639 $ 137,442 $ 124,513 $ 127,003 $ 129,543 $ 132,134 25 Cost Allocation $ 230,707 $ 235,321 $ 365,544 $ 372,855 $ 380,312 $ 387,918 26 RTA, SLOCOG and Other Off-The-Top
Contributions from TDA $ 690,993 $ 633,596 $ 646,268 $ 659,193 $ 672,377 $ 685,825 27 Transfers Out $ - $ - $ - $ - $ - $ -
28 Capital $ 1,800,000 $ 2,753,518 $ 3,128,157 $ 2,055,000 $ 2,115,000 $ 2,175,000 60 TOTAL Expenditures & Obligations: $ 5,856,823 $ 8,292,762 $ 8,026,547 $ 7,083,378 $ 7,276,927 $ 7,474,136 61 62 CHANGES IN FINANCIAL POSITION
63 Beginning Fund Balance** $ 2,697,491 $ 2,715,598 $ 2,129,596 $ 5,223,501 $ 9,501,414 $ 13,715,705 65 Revenue Over/(Under) Expenses $ 1,386,550 $ (586,002) $ 3,106,459 $ 4,290,468 $ 4,226,846 $ 62,712 67 Ending Fund Balance before CalPERS $ 4,084,041 $ 2,129,596 $ 5,236,056 $ 9,513,969 $ 13,728,260 $ 13,778,417 68 CalPERS Downpayment $ - $ - $ 12,555 $ 12,555 $ 12,555 $ 12,555 69 Ending Fund Balance $ 4,084,041 $ 2,129,596 $ 5,223,501 $ 9,501,414 $ 13,715,705 $ 13,765,862 70 Policy Reserve Level - 20% $ 673,166 $ 981,130 $ 850,424 $ 873,837 $ 897,910 $ 922,662 71 Undesignated Fund Balance $ 3,410,875 $ 1,148,467 $ 4,373,076 $ 8,627,577 $ 12,817,795 $ 12,843,200 2021-23 Financial Plan
**FY 2022-23 Beginning Fund Balance is based on projected FY 2021-22 year end balance which is higher than what is shown in the FY 2021-22 Budget column because of some additional unanticipated revenue and expenditure savings. *State TDA Allocation is shown to illustrate SLO Transit's state funding contribution toward regional planning as dictated by RTA.
Budget Document Pg. 67
Local Revenue Measure
Section 5: Local Revenue Measure
The Local Revenue Measure is a 1.5 percent local sales
tax approved by City voters in November 2020 that went
into effect on April 1, 2021. It replaced the previous .5 percent local sales tax approved by City voters in
November 2006. The tax is instrumental in protecting
and maintaining operating services and public
infrastructure identified by the community as high
priorities such as community safety, creek protection,
addressing homelessness, keeping public areas safe and
clean, retaining local businesses, investments in youth/senior services, streets, open space/natural areas and other vital services and facilities.
The largest use of Local Revenue Measure funding for operating costs is for fire, police, rangers and other public safety services. Other examples include staffing for programs such as neighborhood street paving, flood control, and code enforcement.
FY 2021-22 In Review and Emergent Trends
At the end of March 2022, 70% of the City’s forecasted sales tax revenue for this fiscal year had been collected due to the timing of disbursements from the California Department of Tax and Fee Administration (CDTFA) which lags behind. This accounts for revenue earned July 2021 through February 2022. Like the rest of the nation, the City experienced a surge of consumption that corresponded with the lifting of lockdowns and stimulative fiscal and monetary policy. While the U.S economy has largely recovered from the pandemic-driven downturn, new challenges arose. Higher labor and raw material costs due to supply chain issues, along with inflationary pressures drive taxable good prices upward and increase the City’s sales tax revenue. However, higher prices reduce consumer demand and increase the City’s own expenditure costs. It is still unclear how these factors will play into the local economic forecast, but staff expect a weakening of sales tax receipts beginning in 2023.
While the City has made significant progress on delivering capital projects, it is currently constrained by unprecedented labor and supply chain shortagesthat are affecting the entire world. Locally, these include labor market shortages, significant construction activity in our area that are increasing local competition for design, inspection, and construction services.
Table L1: Local Revenue Measure Forecast
2021-22 2022-23 2023-24 2024-25 2025-26
Revenue Forecast $ 25,810,000 $ 27,048,880 $ 27,725,102 $ 28,279,604 $ 28,845,196 Growth from prior year 5% 3% 2% 2%
Budget Document Pg. 68
Local Revenue Measure
Table L2: Changes from the Adopted Financial Plan (or Mid-year Review) Project Project Name 22-23 Original Budget 22-23 Revised Budget Change 1000500 CIP Project Delivery Augmentation $1,000,000 $142,710 $(857,290) Change reflects reallocation of capital budget to Public Works' operating budget to cover cost of 4.00 FTE new positions added at FY 2021-22 Mid-Year. In addition, the change reflects the recommended addition of 1.00 FTE Maintenance Supervisor to create additional capacity within Public Works to deliver capital and maintenance projects. 1000027 Urban Forest Maintenance $175,000 $375,000 $200,000 Change is due to a correction of an approved FY 2021-22 Mid-Year request to add $200,000 to the operating budget for annual pruning and watering costs. This expenditure should have been classified as a capital expenditure and is being moved to an existing capital project for FY 2022-23 via adoption of the Budget Supplement. 90346 Street Reconstruction & Resurfacing $4,266,258 $3,266,258 $(1,000,000) Project budget is being decreased for two purposes:
1. To transfer $900,000 to the Capital Reserve to partially reimburse use of $1,000,000 used in FY 2021-22 to advance construction of the Area 6 & 7 Curb Ramps ahead of the Summer 2022 Slurry Seal project; and
2. to balance the budget appropriated for FY 2022-23.
Table L3: FY 2022-23 Projects Recommended for Deferral (See Budget Section 7 for more detail) ID# Spec# Project FY 2022-23 Budget to
be Deferred
1 91503 California & Taft Roundabout $2,720,000
2 1000031 Parking Lot Maintenance – Meadow Park and Minor Repair of City Parking Lots
$155,000
3 90742 Storm Drain System Replacement – Woodbridge Runoff $175,000 4 1000052 Buchon-Santa Rosa Intersection Improvements $250,000 5 1000029 Bridge Maintenance $100,000
6 1000032 Pedestrian and Bicycle Pathway Maintenance - Railroad Safety Trail from Cal Poly to Taft Street
$50,000
7 1000075 Major Facility Maintenance - Ludwick Community Center Roof and Solar
$40,000
8 91385 Park Major Maintenance & Repairs - Santa Rosa Barbeque Replacements
$7,500
9 Total $3,497,500
Table L4: Recommended Use of Deferred Project Funding (See Budget Section 7 for more detail) ID# Spec# Project/Reserve FY 2022-23 Budget to
be Reallocated
1 90346 Roadway Sealing 2022 +$1,585,000
2 1000055 City Hall Meeting Room TI +$115,000
3 Capital Reserve +$1,797,500
4 Total $3,497,500
Budget Document Pg. 69
Local Revenue Measure
Investment into Capital
The City’s Capital Improvement Program (CIP) has grown significantly due to an increase in available funding to maintain, enhance, and expand City infrastructure from Measure G-20. It quickly became evident that the growth of the CIP exceeded the City’s existing organizational capacity to effectively deliver capital projects. In March of 2021, the City executed an agreement with Management Partners to perform an assessment of the City’s CIP. The assessment resulted in 53 recommendations covering all aspects of the City’s CIP to improve project delivery, including staffing and organizational structure, policy, work processes and responsibilities, finance and budget, staff training and onboarding, and communication and reporting. Since the CIP Process Improvement Manager was hired last year, many of these recommendations have been implemented. With the mid-year budget update, the City added 4.00 FTE new positions and an additional position is being recommended with the Supplemental Budget.
While the construction phase of projects is often the community’s first encounter with the improvements that are being made, it is also the result of months and sometimes years of planning, outreach and design work that must be completed prior to making visible progress on a project and proceed to vertical construction. Considering this, the City must ensure that operating resources are right sized to deliver projects. Overall operating costs are forecasted to grow by about 12-15% in the next fiscal year due to equity adjustments and inflationary pressures. Based on existing staff positions, the table below shows the percentage split between operating and capital expenditures for LRM:
Table L4: Operating/Capital Split 22-23 23-24 24-25 25-26 Operating1 32% 26% 26% 26%
Capital 68% 74% 74% 74%
2022-23 Appropriations
The Local Revenue Measure funds 44.6 positions and over 85 CIP projects. The graph below shows the total LRM investment by priority. The full list of LRM appropriations for FY 2022-23 is included on the next page.
1 Many operating costs have a direct nexus to Capital. The split is approximately 80/20 (80% Capital, 20% operating) when CIP-related staff are categorized under “Capital”.
Budget Document Pg. 70
Local Revenue Measure
3%
14%
6%
3%
6%
9%
1%
13%
36%
9%
GRAPH L5: LRM EXPENDITURES BY PRIORITY
Address Homelessness
Community Safety and Emergency Preparedness
Creek and Flood Protection
Economic Development and Business Retention
Open Space/Natural Areas Preservation and
Maintenance
Other Services and Projects
Protect Financial Stability
Safe and Clean Public Areas
Street Maintenance and Transportation (includes bicycle and pedestrian improvements)
Youth/Senior Services and Recreation Facilities
Budget Document Pg. 71
Operating Capital
Address Homelessness $ 764,069
1 Housing/Homelessness Contract Position $ 97,055 2 Mobile Crisis Unit ( Social Worker ‐ contract through TMH) $ 207,8103 Mobile Crisis Unit (Paramedic) 1FTE $ 92,190 4 CAT Team Social Worker ‐ Contract through TMH $ 116,1885 Expansion of 40 Prado Homeless Services Center Bed Capacity $ 63,826 6 Housing and Homelessness Contract Services Support $ 117,0007 Parks and Open Space Environmental Clean‐Up Resources $ 70,000 Community Safety and Emergency Preparedness $ 1,520,700 1,992,685 $ 8 Emergency Manager (1 FTE) $ 161,130
9 Public Safety Customer Engagement $ 12,000 10 Supplemental Overtime for Farmer's Market Support $ 15,00011 Community Safety and Emergency Preparedness (Firefighters, 2; Downtown Police Patrol Officers, 3, Downtown Sergeant, 1): FTE 6 $ 1,180,646 12 Emergency Response Live ‐ Fire Training Improvements $ 17,57013 Facility Roll Up Door Replacements ‐ Various Locations $ 15,000 14 Fire ‐ Fleet Replacement (1/2 ton truck, 1; Heavy Duty Truck, 1; Heavy Duty Truck w/ Utility Bed, 1; Compact Truck, 1; Open Space Rescue Truck, 1) $ 465,000 15 Fire Emergency Operations Center Training (Emergency Management Services) $ 30,000 16 Fire Equipment Replacement (PPE, AED, etc.) $ 177,49917 Fire Hydrant Replacement $ 40,000 18 Fire Inspection Management Software (Mobile Eyes) $ 12,20019 Fire Intern Program $ 23,257 $ ‐ 20 Fire Station #3 & #4 Remodel Space Study and Design $ 75,00021 Fire Station #4 Exterior Paint $ 27,50022 Fire Technical Rescue Team Expansion $ 9,150 23 Fire Training/Safety Captain (1 FTE) $ 263,352 24 Initial Design Study ‐ Police Station Replacement $ 300,000 25 Open Space and Creeks Hazardous Tree Removals $ 20,00026 Police ‐ Information Technology $ 316,00027 Police ‐ Fleet Replacement (Patrol Hybrid SUV, 2/YR; Motorcycles; SNAP SUV, 1; Investigations SUV, 1) $ 235,000 28 Police ‐ Public Safety Equipment Replacement and Supplies $ 70,88129 Police Evidence Storage Bldg. and Police Range ‐ Roof Replacement $ 47,200 Creek and Flood Protection $ 742,816 $ 550,000 30 Creek and Flood Protection ( Wastewater Collection Operators and Supervisor, Environmental Compliance Inspectors, Stormwater Management, Environmental Programs Manager): FTE 6 $ 742,81631 Creek Trash Capture $ 50,000 32 Storm Drainage Infrastructure Replacement (multiple locations) $ 325,00033 Woodbridge Groundwater Runoff Diversion $ 175,000 FY 2022 ‐ 23 2022‐23 Local Revenue Measure Expenditure Budget by Priority Local Revenue Measure
Budget Document Pg. 72
Operating Capital
FY 2022 ‐ 23 2022‐23 Local Revenue Measure Expenditure Budget by Priority Economic Development and Business Retention $ 117,500 757,375 $ 34 Additional Banner Arms, Bench Arm Rests, Signs $ 25,000 35 Annual Public Art Maintenance and Projects (Utility Box Beautification, Small Public Art Projects, Maintenance) $ 92,50036 Arts, Culture and Community Partner Support $ 25,00037 Economic Development Data Tracking and Reporting $ 30,00038 Economic Development Program Support $ 25,00039 Holiday Activation Support in Downtown for Lighting and Other Features $ 150,000 40 New Economic Development Strategic Plan $ 100,000 41 Open SLO ‐ Downtown Dining Temporary Staffing $ 27,375 $ ‐ 42 Support for Underserved/Underrepresented Community Businesses $ 150,00043 TBD Business Retention/Recovery Programs $ 250,000 Open Space/Natural Areas Preservation and Maintenance $ 709,019 $ 730,000 44 Additional Pruning/Watering $ 200,000
45 Parks Additional Contract Funding $ 40,00046 Parks Maintenance Beautification Gardner (1 FTE) $ 106,64347 ECOSLO partnership ‐ SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up $ 20,000 48 Fuel Reduction Crew (4000 Supplemental Staff Hours) $ 61,58949 New Ranger Maintenance Worker (1 FTE) $ 85,27650 Open Space Acquisition $ 250,00051 Open Space Fencing $ 25,000 52 Open Space Maintenance $ 80,000
53 Open Space Vegetation Management and Fuel Reduction $ 20,00054 Open Space/Natural Areas Preservation and Maintenance (2 FTE Ranger Maintenance Workers ) $ 190,892 55 Ranger Services Staffing Resources $ 70,071 56 Sustainability & Natural Resources Analyst $ 98,819 $ ‐57 Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern $ 15,729 $ ‐ 58 Urban Forest Maintenance $ 175,000
Other Services and Projects $ 1,165,820 $ 1,230,817 59 Centralized Resident Inquiry Platform $ 40,00060 Capital Projects Engineering Staff (6 FTE) $ 883,460 $ 116,54061 CIP Interns $ 5,900 62 City Fleet Vehicle Repairs $ 20,00063 City Storage Area Network (SAN) $ 178,136 64 Citywide Wireless System Replacement $ 70,64165 Contract Heavy Equipment Mechanic $ 113,53966 Council Hearing Room Modification and Functionality Improvements $ 245,00067 Electric Vehicle Charing Stations (Various City Facilities, Including Parks and Rec and Corp Yard) $ 100,00068 Energy Management Controls Upgrade $ 50,00069 Facilities Maintenance 3/4 ton Pickup with Utility Bed $ 60,00070 Fleet Intern $ 22,921 Local Revenue Measure
Budget Document Pg. 73
Operating Capital
FY 2022 ‐ 23
2022‐23 Local Revenue Measure Expenditure Budget by Priority 71 Funding for Increased Cost of Facilities Maintenance Materials and Supplies $ 30,00072 Increased Contract Funds for Specialized Mechanic Services $ 50,000 73 Major Facility Maintenance ‐ ADA Transition Plan Implementation $ 10,500 74 Roundabout Public Art Installations $ 400,000 Protect Financial Stability $ 404,558
75 Accounting Assistant (1 FTE) $ 60,041
76 Application Systems Specialist (1 FTE) $ 135,48577 Financial Specialist ‐ Accounting (1 FTE) $ 102,88178 Fire Injury Reduction Program $ 18,00079 Fire Policy Research Software (Lexipol) $ 9,369 80 Half‐Time Technology Project Manager (.5 FTE) $ 78,782 Safe and Clean Public Areas $ 586,454 $ 2,710,000 81 Additional Pressure Washing $ 25,00082 Additional Streets Maintenance Staff (2 FTE) $ 216,51283 Additional Supplies for Downtown Maintenance Program* $ 25,00084 Facilities Additional Contract Funding $ 25,00085 Increase in Mission Plaza Maintenance $ 27,00086 Additional Landscape Maintenance Contract Services $ 65,00087 Bob Jones Trail and Railroad Safety Trail Solar Lighting $ 1,350,00088 Curb Ramps and Sidewalks Replacement (various locations) $ 150,00089 Increased Trash and Recycling Services in Public Spaces $ 125,00090 Mission Plaza Concept Plan Implementation (Phase 1 ‐ Restroom Replacement and Kiosk Café) $ 1,035,000 91 Safe and Clean Public Areas (Parks Maint. Specialist): FTE 1 $ 77,942 92 Sidewalk Replacement and Installation (includes street trees) $ 100,000 93 Street and Pathway Lighting (various locations) $ 75,000 Street Maintenance and Transportation (includes bicycle and pedestrian improvements) $ 1,084,129 $ 6,721,573 94 Additional Street Operator for Maintenance of Streets and Right of Way (1FTE) $ 101,242 95 21‐22 Sealing Project Complete Street Components $ 200,00096 Accessibility and Process Improvement Support Services $ 12,00097 Active Transportation Plan Implementation $ 305,00098 Bridge Maintenance $ ‐ 99 Buchon‐Santa Rosa Intersection Improvements $ ‐
100 California & Taft Roundabout Construction $ ‐101 Concrete Street ‐ Monterey ‐ CA to Santa Rosa $ 800,000102 Increased Asphalt and Concrete Budget $ 60,000 103 Increased Budget for Signals and Street Light Equipment and Electricity $ 25,000 104 Madonna Inn Frontage Bike Pathway (Madonna to Fernandez) $ 150,000 105 Neighborhood Traffic Improvements $ 75,000
106 Pavement Management (Downtown areas) $ 3,010,000107 Prado Road Bridge & Road Widening $ 146,573 Local Revenue Measure
Budget Document Pg. 74
Operating Capital
FY 2022 ‐ 23 2022‐23 Local Revenue Measure Expenditure Budget by Priority 108 Prado Road Interchange (YR 1 PA/ED Phase & YR 2 Design Phase) $ 1,910,000 109 Railroad Safety Trail from Cal Poly to Taft Street $ ‐ 110 Street Maintenance and Transportation (Engineering, Streets Maintenance, Active Transportation) FTE 4.60 $ 599,957 111 Supplemental Street and Parklet Sweeping $ 250,000 112 Traffic Signs & Striping Maintenance $ 25,000
113 Transportation Interns $ 35,930
114 Transportation Monitoring & Modeling Update $ 70,000 115 Transportation Safety & Operations $ 30,000
Youth/Senior Services and Recreation Facilities $ 395,492 $ 1,701,500 116 Contract Volunteer Coordinator (1 FTE) $ 106,626 117 Concrete Bench & Table Replacement Various Locations $ 15,000 118 Hydration Stations Various Parks and Facilities $ 15,000 119 Irrigation Mainline Leak Repair $ 15,000
120 Jack House Arbor refurbishment $ 7,500121 Laguna Lake Golf Course Maintenance $ 20,000 122 Ludwick and Senior Center ‐ Exterior Paint and Shell Rehabilitation $ 30,000 123 Ludwick Community Center ‐ Roof and Solar Replacement $ ‐124 Meadow Park Exercise/Par Course Equipment Replacement $ 20,000 125 Mission Plaza Arbor Refurbishment $ 70,000
126 Mitchell Park Playground Equipment Replacement $ 100,000 127 Orcutt Area ‐ Linear Park Planning and Construction $ 815,000128 Park Maintenance ‐ Fleet Replacement: (Mower, 1; Tractor, 1; Trailers, 4;) $ 108,000 129 Parking Lot Maintenance $ 50,000
130 Parks and Recreation ‐ Fleet Replacement $ 103,000 131 Parks and Recreation Master Plan Implementation $ 200,000 132 Parks Major Maintenance ‐ ADA Transition Plan Implementation $ 20,000 133 Parks Play Area Surfacing $ 30,000
134 Santa Rosa Park Barbecue Replacements $ ‐135 SLO Swim Center Minor Capital Maintenance and Operating Costs (Electricity conversation for solar) $ 55,000136 Swim Center ‐ Pool Automatic Vacuum $ 18,000 137 Swim Center Furnaces Replacement $ 40,000
Local Revenue Measure
Budget Document Pg. 75
Operating Capital
FY 2022 ‐ 23 2022‐23 Local Revenue Measure Expenditure Budget by Priority 138 Swim Center Supplies (pool chemicals, etc.) $ 25,000 139 Water Stations and Supply Lines $ 25,000
140 Youth Services Staffing Resources (Equivalent to 1.5 FTEs) $ 116,925 $ ‐ 141 Youth/Senior Services and Recreation Facilities (Parks Maint. Specialist): FTE 1 $ 91,941 Total LRM Budget $ 8,602,418 $ 15,282,090 Transfer to Capital Reserve $ 2,697,500
$ 8,602,418 $ 17,979,590
*Budget items highlighted in orange were approved at the 2021‐22 Mid‐year Review*Budget items highlighted in green reflect projects with recommended changes in the 2022‐23 Supplemental Budget. See Budget Section 7 for detail $ 26,582,007 Grand Total
Local Revenue Measure
Budget Document Pg. 76
Debt
Section 6: Debt Service
Debt Issue Principle Interest Total Payment
Debt Service Fund
2012 Revenue Bond 2012 Refunding Revenue Bonds 285,000 102,300 387,300 2014 Revenue Bond Los Osos Valley Overpass 185,000 238,031 423,031 2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 569,850 369,719 939,569 2018 Lease Fire Truck 142,144 3,986 146,131
2014 State Loan Energy Sources Conservation 93,074 1,168 94,242 Lease Golf Cart Leases 1,860 1,860
2020 Financing Motorola Radios 217,671 217,671
Total Debt Service Fund 1,494,600 715,205 2,209,804
Water Fund
2012 Revenue Bond Refunding Bond 550,000 22,000 572,000 2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 16,530 10,725 27,255 2018 Revenue Bond Refunding 2006 Water Revenue 470,000 416,500 886,500 2020 State Loan CIEDB - Water Treatment 588,144 368,659 956,803 Total Water Fund 1,624,674 817,884 2,442,558
Parking Fund
2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 265,350 172,159 437,509 2001 State Loan CIEDB- Marsh St. Parking 301,748 112,320 414,068 Total Parking Fund 567,098 284,479 851,577
Sewer Fund
2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 18,270 11,854 30,124 2009 State Loan CIEDB-Tank Farm Lift Station 322,310 230,000 552,310 2008 Bank Loan Installment Sale Agree.-SunTrust 170,000 11,130 181,130 2014 Bank Loan Installment Sale Agree.-US Bank 511,479 105,896 617,375 Total Sewer Fund 1,022,058 358,880 1,380,939
TOTAL ALL FUNDS 4,708,430 2,176,448 6,884,878
FY 22-23
Budget Document Pg. 77
Capital Improvement Projects
Section 7: Capital Improvement Projects
Overview
All City construction projects and equipment purchases costing $25,000 or more are included in the City Capital Improvement Plan (CIP). The CIP is adopted as part of the budget in every Financial Plan and accomplishes several goals.
Maintains and replaces existing City infrastructure in accordance with the City’s asset management plans, infrastructure replacement schedules, and other documents Meets community needs and desires as established in the Community Budget Forum, Major City Goals and Council priorities.
Plans, schedules, and finances projects to ensure cost-effectiveness and conformance with established policies.
Comprehensive policies relative to the development of the City’s CIP are specified in the Budget Policies section of the 2021-23 Financial Plan including detailed information relative to both the two-year Financial Plan and the Five-Year CIP forecast1
.
The Supplemental Budget is the second-year budget of a two-year Financial Plan. Before the beginning of the second year of the two-year cycle, the City Council reviews the progress during the first year, adjusts as necessary, and approves appropriations for the second fiscal year. As reported in the Mid-Year Budget Review, the revised revenue forecast for the General Fund is significantly increased compared to the forecast presented with the adopted Financial Plan, due largely to the continued re-opening and recovery of the economy. Due to revenue trends at the time, the FY 2020-21 Supplemental Budget included a full overhaul of the CIP budget initially presented in the 2019-21 Financial Plan. Fortunately, current financial conditions do not require similar recommendations for FY 2022-23. That said, some projects are experiencing delays or cost increases due to a variety of factors, discussed extensively below. The FY 2022- 23 CIP section below includes recommended changes to certain project budgets to reflect changes at the FY 2021-22 Mid-Year Budget review or address urgent needs. It is likely that additional funding may need to be requested for additional projects throughout the coming year associated with anticipated ongoing supply chain and/or costs of goods issues.
The current project to augment CIP delivery (discussed in more detail below) informs the format and content of the FY 2022-23 CIP Supplemental Budget and continues progress towards providing more comprehensive and contextual reporting on the CIP. The CIP Supplemental Budget is intended to provide readers with a clear picture of the context in which the CIP is operating, as well as insight into the progress to date implementing the Management Partners 2022 CIP Process Improvement recommendations in the current year, and further changes and enhancements to come in FY 2022-23. 1 2021-23 Financial Plan, Pages 537-569. https://www.slocity.org/government/department-directory/finance/citybudget Budget Document Pg. 78
Capital Improvement Projects
The 2021-23 Financial Plan includes funding for 115 construction projects (inclusive of new assets, asset replacements and asset maintenance) that are managed by CIP Engineering, Transportation, or Utilities project managers. In FY 2021-22 to date, 22 projects have been completed (this includes both projects funded in FY 2021-22, as well as projects funded and initiated prior to the 2021-23 Financial Plan). 81 projects are in progress, with 50 projects scheduled to begin construction prior to the end of FY 2022-23, assuming Council’s adoption of staff’s recommendations for the 2022-23 CIP.
City construction projects are completed in seven distinct phases, shown below. While the construction phase is the most visible to the community, it is also the culmination of months to sometimes years’ worth of planning, design, engineering and permitting which all work to minimize issues and delays during the construction phase.
Project Identification
& Budgeting
• City Council & community input
• Project planning & development
• Funding identified & approved by Council
Project Design • Preliminary work
• Project layout and mapping
• Retain consultant design services
Plans & Specifications
• Development of detailed information
• Coordination with third party utilities
• 50% design review
• 90% plan review/design review
• Project communications
• Environmental review
Project Ready to
Construct
• Design completion
• Advertisement of project for public bid
• Award of construction contract
Permits • City building permit
• Outside agency permits
Construction
Project Completion • Ribbon cutting
• Notice of completion project closeout
Budget Document Pg. 79
Capital Improvement Projects
The chart to the right shows the
status of the 115 construction
projects funded in the 2021-23
Financial Plan. It is expected that
roughly two-thirds of the projects
currently in design will begin
construction prior to the end of
2021-23. Most of the construction
projects that have not yet started
will not be funded until the start of
FY 2022-23, assuming adoption of
staff’s recommendations.
Measure G20 and Expansion of CIP
The 2021-23 Financial Plan represents significant growth to the City’s CIP, due to the passage of the Local Revenue Measure (Measure G-20) which increased the local sales tax rate from 0.5 percent to 1.5 percent which is projected to generate approximately $25 million annually. For the General Fund alone, capital expenditures in the current year have increased by $18.5 million or 70% compared to FY 2020-21 when including American Rescue Plan (ARPA) funding. Absent the one-time ARPA funding, General Fund capital expenditures in the current year have increased by $14 million or 65% compared to the prior year.
CIP Process Improvements in Progress
The growth of the CIP has exceeded the City’s existing organizational capacity to effectively deliver capital projects. To address this, the 2021-23 Financial Plan included budget augmentations of $500,0000 in FY 2021-22 and $1 million in FY 2022-23 and beyond to “right-size” the organization to address the increased project workload. In 2021, the City contracted with Management Partners, a local government consulting firm, to perform an assessment of the delivery of the CIP and provide both structural and process improvements to deliver projects. The Management Partners assessment resulted in 53 recommendations covering all aspects of the City’s CIP to improve project delivery. The recommendations FY 2021-22 CIP Process Improvements
A CIP Process Improvement Manager was hired in November 2021 to lead the implementation of the recommendations, as well as other identified areas for improvement. Many of the recommended improvements relate to the policies that govern the CIP and the processes that are Design
61%
Construction
3%
Study
1%
Complete
8%
Not Started (not
funded until FY
22-23)
22%
Not Started
5%
Status of Construction Projects Funded in
2021-23 Financial Plan
Budget Document Pg. 80
Capital Improvement Projects
followed to deliver projects. The work being done in the current year lays the foundation for a multi-year process to refine CIP policies and processes to best deliver on the expanded CIP. It is expected that the work being done today will be reflected during the 2023-25 Financial Plan, when projects will be delivered as intended.
The $500,000 budgeted for the CIP Project Delivery Augmentation project in FY 2021-22 funds these efforts, as well as contracted services to support delivery of various parks projects as well as implementation of the Mission Plaza Concept Plan and Public Safety Center. The table below summarizes planned expenditures from the project budget in the current year:
Because the growth of the CIP has outpaced the City’s capacity to deliver projects, the first priority has been to add new staff positions, as recommended by Management Partners. As part of the Mid-Year Budget update, the Council approved the addition of 4.00 FTE new positions to build capacity to address the unprecedented CIP growth and support implementation of other recommendations over the coming year. These positions are funded with the additional budget allocated in the 2021-23 Financial Plan and include:
1. 1.00 FTE Engineering Inspector to provide construction management for capital projects;
2. 1.00 FTE Capital Projects Manager (a new classification) to provide project management for capital projects that do not require a high degree of engineering expertise and to partner with Engineers to manage larger and more complex capital projects;
3. 1.00 FTE Supervising Civil Engineer to manage more complex and higher profile projects and also provide direct oversight of Engineers and Capital Projects Coordinators who are actively managing projects; and
4. 1.00 FTE CIP Manager (a new classification) to manage to non-technical aspects of the City’s CIP.
In addition, 1.00 FTE vacant Engineer has been reclassified to the new Capital Projects Coordinator position.
As of the writing of this report, staff has developed the new classifications and has completed the required meet and confer process with SLOCEA for the addition of the Engineering Inspector, establishment of the new Capital Projects Manager classification and reclassification of the Engineer position. Recruitments for these new positions are either in progress or will begin very soon. The expectation is that the increased staff capacity (both in number and broadened skillset) will enable the CIP Engineering program to more effectively deliver on the planned capital projects which have increased in complexity, scale and number.
Table C1: FY 2021-22 Planned CIP Project Delivery Augmentation Project Expenditures ID# FY 2021-22 Budget $ 500,000
1 MP CIP Project Management -Phase I (55,000)
2 RRM PM Support for Mission Plaza and Public Safety Center (136,720) 3 MP Parks Project Management - Phase 2 (100,000)
4 CIP Process Improvement Manager (Contract) (117,600)
5 Office Supplies for CIP Process Improvement Manager (3,608) 6 Remaining Balance 87,072*
* Remaining budget available to fund the cost of the new staff positions, for the remainder of FY 2021-22.
Budget Document Pg. 81
Capital Improvement Projects
2022-23 CIP Process Improvements
As part of the Supplemental Budget, staff is recommending the addition of 1.00 FTE Capital Maintenance Supervisor (a new classification) to oversee critical Public Works programs including streetlights and signals, urban forestry, and maintenance contracts. The intent is that this new position will increase the capacity of existing staff to supplement the efforts of the CIP Engineering group to oversee the many projects included in the City’s CIP. Because of the direct alignment of this new position to the effort to augment CIP delivery, it is recommended that this position be funded from the designated $1,000,000 for the CIP augmentation project in FY 2022-23. The table below summarizes planned expenditures from the project budget in FY 2022-23:
In addition to building staff capacity (necessarily prioritized in 2022), the CIP Process Improvement Manager is also exploring opportunities to update policies and work processes, streamline project delivery, more clearly define roles and responsibilities throughout the organization, improve communication and reporting internally and externally, and improve staff onboarding and training in line with the Management Partners recommendations.
Project Delivery
Project Delivery is constrained by several unprecedented conditions. These include limited staffing (a phenomena not unique to the City but impacting all businesses), significant construction activity in our area, due to Federal stimulus monies (increasing local competition for design, inspection, and construction services), supply chain issues, and inflation.
Staffing Constraints
As of the writing of this report, there are 8.00 FTE vacant positions in the CIP Engineering Program in addition to 1.00 FTE vacant CIP Manager. This is due in part, to the addition of the 4.00 FTE new positions noted above, but also reflects the transition of several employees (Engineers and an Engineering Inspector) who have left for career advancement and/or higher compensation in the private sector or other public sector agencies. Currently, each CIP Engineer has a project workload of approximately 15 ongoing active projects in different phases of delivery. In addition, the City Engineer is managing three of the four legacy projects (discussed in more detail below) and the Supervising Civil Engineer is also providing direct management of certain projects, which impacts Table C2: FY 2022-23 Planned CIP Project Delivery Augmentation Project Expenditures ID# FY 2022-23 Budget $ 1,000,000 Notes
1 CIP Process Improvement Manager
(Contract)
(89,301) Remainder of contract initiated
in November 2021
2 CIP Manager (185,182) New positions approved by
Council via adoption of FY
2021-22 Mid-Year
recommendations
3 Supervising Civil Engineer (189,475)
4 Engineering Inspector I/II/III/IV (138,470)
5 Capital Projects Manager I/II/III (134,432)
6 Capital Maintenance Supervisor (146,599) New position recommended for approval in FY 2022-23
Supplemental Budget
7 Remaining Balance 116,540*
* Remaining budget available to fund continuation of existing contracted services, or new contract services to support project delivery.
Budget Document Pg. 82
Capital Improvement Projects
their ability to provide overall management of the CIP. Due to the scale and complexity of some projects, the current project workload is neither ideal nor sustainable. The use of consultant resources has previously been a good option to build capacity when there are staff vacancies.
However, due to staffing shortages in all industries and the number of construction projects currently underway in the region, there is a shortage of consultant availability to move projects forward without delay.
Supply Chain Issues and Construction Cost Escalation
The FY 2021-22 Mid-Year Budget Review noted that global supply chain issues resulting from the COVID-19 pandemic have influenced the availability and cost of goods. These issues have continued and have been exacerbated by the current conflict in Ukraine. The supply chain issues and cost escalation have impacted various City operations, from water treatment at the WRRF to fleet replacements, and have also extended to construction projects. Today, the construction industry is still facing uncertainty in costs, and labor supply. Multiple City projects have come in well above engineers’ estimates and have had to be rebid and/or returned to the City Council for further funding allocations. The costs of materials are escalating far more rapidly than indexes can predict and the construction industry is facing a labor shortage. At present, it is predicted that costs will escalate approximately 22% year over year. In addition to projects coming in over bid, several capital projects received no bids, which is an unusual occurrence.
As noted in the Utilities Fund Review, inflation and supply chain issues have particularly impacted Utilities’ projects and operations. Chemical price increases have increased the Water Treatment Plant and Wastewater Recovery Facility’s chemical budgets by approximately 50% and 29% respectively. Electrical costs for Utilities’ non-Community Choice Energy operations are projected to increase as much as 20% over initial projections. These material cost increases, in addition to the need to respond to current drought conditions, result in significant operating budget changes in FY 2022-23 for both the Water and Sewer funds.
Fortunately, recent government intervention may help to ease up some of the supply chain issues.
Governor Newsom and State Department of General Services have recently identified sites to store shipping containers to alleviate delays to goods getting into California’s ports. At this time, it is too soon to tell whether or not these storage sites will increase the availability of goods.
Efforts to Address Constraints to Project Delivery
Recognizing that the City is not able to significantly influence many of the constraints noted above, staff has been working to adjust processes and expectations in order to effectively deliver capital projects.
Below is a summary of a number of efforts currently underway to adapt to the current realities of the CIP:
Compensation
In order to assure that the City provides competitive compensation and to address recruitment and retention issues throughout the organization, the City initiated a compensation study in August 2021. The study included a survey of other employers to evaluate the City’s base salaries and determined that overall, the City’s base salaries are 8.55% below the median of comparator agencies. In February 2022, the survey results were presented to the City Council, and shortly after, the City initiated the negotiation process with SLOCEA in order to increase wages for SLOCEArepresented staff (this includes many of the classifications within the CIP Engineering group that Budget Document Pg. 83
Capital Improvement Projects
design and deliver the City’s capital projects). As of the writing of this report, negotiations with SLOCEA are still underway, but the hope is that increased compensation will improve the City’s ability to recruit and retain employees that are critical to delivery of the CIP.
Project Prioritization
It is expected that staffing constraints will continue well into 2023. With limited opportunity to address the factors contributing to staffing shortages, CIP staff led an effort to realistically assess capacity to deliver on the construction projects funded in the 2021-23 Financial Plan, and prioritize those projects not yet started. The prioritized has been vetted by the CIP Review Committee to assure broad input and support. The intent of this effort is to:
1. Set realistic expectations related to project delivery;
2. Prioritize the project management tasks that will be assigned to new staff as they are onboarded; and
3. Identify which projects not yet in progress may be able to reallocate funding to projects inprogress that may need additional funding due to cost escalation.
The identified priority levels include:
The priority levels for each construction project can be found in Tables C7 through C14 which provide status update on all projects funded in the 2021-23 Financial Plan. The next section summarizes staff’s recommendations around projects that can be deferred to the 2023-25 Financial Plan, in order to fund projects that are in need of additional funding.
Recommended Changes to General Fund Projects to Address Impacts of Supply Chain and Construction Cost Issues
As a part of the Supplement, staff is recommending several changes to General Fund projects for FY 2022- 23, reflective of the cost increases and staffing constraints noted above. The project prioritization exercise described above was used to guide analysis of projects to identify those that could be deferred to 2023-25.
The projects recommended for deferral are those that are:
1. Not construction ready, or
2. Grant funding is being sought for, or
Budget Document Pg. 84
Capital Improvement Projects
3. Can be paused until staff resources are online.
The projects listed below are recommended for deferral (they are not being cancelled) and will be included in staff’s recommendations for funding in the 2023-25 Financial Plan. The funding from the deferred projectsisrecommended to be used for cost increases for the Summer 2022 Roadway Sealing project which came in significantly over bid, the City Hall Meeting Room Tenant Improvements project, and to fund the Capital Reserve at the policy-required funding level. Staff anticipates that reserve funding will be needed in order to address the increased cost of goods and services due to continued global economic conditions into FY 2022-23.
The following projects are recommended to be deferred to 2023-25. All projects are funded through the Local Revenue Measure or General Capital Outlay.
Table C3: FY 2022-23 Projects Recommended for Deferral
ID# Spec# Project FY 2022-23 Budget to
be Deferred
Funding
Source Priority
1 91503 California & Taft Roundabout $2,720,000 LRM 2
2 1000031 Parking Lot Maintenance – Meadow Park and Minor Repair of City Parking Lots
$155,000 LRM 5
3 90742 Storm Drain System Replacement – Woodbridge Runoff $175,000 LRM 5 4 1000052 Buchon-Santa Rosa Intersection Improvements $250,000 LRM 5 5 1000029 Bridge Maintenance $100,000 LRM 6
6 1000032 Pedestrian and Bicycle Pathway Maintenance - Railroad Safety Trail from Cal Poly to Taft Street
$50,000 LRM 6
7 1000508 City Hall Lighting $15,000 General
Fund
6 8 1000075 Major Facility Maintenance - Ludwick Community Center Roof and Solar
$40,000 LRM 6
9 91385 Park Major Maintenance & Repairs - Santa Rosa Barbeque Replacements
$7,500 LRM 6
10 Total $3,512,500
The deferred funding is recommended to be allocated as follows:
Table C4: Recommended Use of Deferred Project Funding
ID# Spec# Project/Reserve FY 2022-23 Budget to
be Reallocated
1 90346 Roadway Sealing 2022 $1,585,000
2 1000055 City Hall Meeting Room TI $130,000
3 Capital Reserve $1,797,500
4 Total $3,512,500
Additional information about each of these projects is included below in the ‘Recommended Changes to Existing Projects’ section.
Viewing the Capital Improvement Plan Through the Lens of Diversity, Equity, and Inclusion (DEI)
The City Council set a vision of a community with core values of diversity and inclusivity with the adoption of its 2019-21 Major City Goals. In developing the 2021-23 Financial Plan, DEI was identified as one of four Major City Goals. Staff is in the process of developing a deeper understanding about the interplay between capital projects and DEI and how the built environment can help to advance the City’s DEI goals.
Budget Document Pg. 85
Capital Improvement Projects
In the near term, there are a number of capital projects funded in the 2021-23 Financial Plan that provide an opportunity to support diversity, equity and inclusion within the community. These include:
1. Curb ramp construction projects to provide an accessible route for pedestrians at intersections;
2. Implementation of the Americans with Disabilities Act (ADA) transition plans for major facility maintenance and parks maintenance and repair projects;
3. Performing a planning study for gender-inclusive restroom and sleeping facilities for Fire Stations three and four; and
4. Reviewing the new Police Station building program and budget for opportunities to reduce costs to preserve resources for community service investments.
5. Council’s provision of policy direction for the framework of Community Work Force Agreements (CWAs) for named projects to encourage local worker participation on legacy capital projects so that local workers can benefit from these projects.
Legacy Project Updates
Among the projects funded in the 2021-23 Financial Plan are four major or “legacy” projects which will be highly visible to the public and support growth into the future. Below is a status update on the legacy projects funded in the 2021-23 Financial Plan:
Table C5: Legacy Project Updates
90435 - Cultural Arts District Parking Structure (formerly the Palm-Nipomo Parking Structure) Status Project is currently under design review.
Design review will be completed prior to building permit applications. This project is broken down into the following phases:
• Phase 1A PG&E Relocation – Project Design is 90% complete. Phase 1A expected to advertise for construction in Summer 2022, with construction work on this phase beginning Fall 2022. • Phase 1B Site Clearing and Demolition – Project is at the 95% design completion level. Staff will be applying for reviews for building permits for Phase 1B in the Spring of 2022. Construction is scheduled to begin Spring 2023.
• Phase 2 Parking Structure Construction – Structure design is at 95% design completion level. Staff will be applying for reviews for building permits in the Summer of 2022. Construction scheduled to begin Fall 2023 immediately following completion of Phase 1B Site Clearing and Demolition.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$2,808,989 $1,315,529 $53,300,000 The total cost of construction of all phases of the Cultural Arts District Parking Structure has increased by
11.83%, or $4.7 Million, due to abnormal inflation/rising costs. This percent increase is tracked by Engineering
News Record’s Construction Cost Index. This budget
estimate includes construction costs, soft costs including construction management services, and a 12%
construction cost contingency to address unforeseen
changes during the work.
The Current Project Budget reflects ongoing design
phase work, as well as Phase 1A PG&E Relocation
construction costs.
Working Capital
$7,000,000
Debt Financed
$46,300,000
91365 - Public Safety Center
Status The project is currently in the Planning and Entitlements phase.
Staff received Council feedback to continue to move forward with project development in November 2021. The next phase includes public outreach and the planning and entitlements phase, including adoption of a CEQA Budget Document Pg. 86
Capital Improvement Projects
environmental document. Staff will be reaching out to a public relations consultant experienced in large municipal project communications to assist with outreach. Construction is anticipated to begin in Summer 2025.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$190,685 $110,558 $53,200,000 The Total Project Budget Estimate includes ongoing design and CEQA environmental review costs,
construction costs including market escalation of 3.5%
per year to the construction year, as well as soft costs during construction such as construction management.
As this project moves through the project delivery
process, construction estimates will be updated based
upon more refined project details and current known
construction costs.
Working Capital
$1,200,000
Debt Financed
$52,000,000
91613 - Prado Interchange
Status The Project is currently in the Project Approval/Environmental Document phase (PA/ED).
1. The PA/ED phase is anticipated to be complete by January 2024. i. Elks Lane re-alignment and impacts to City Corporation Yard (30% plans) 8/2022 ii. Prado Road widening 10/2022
iii. CEQA Documents under consultant review after Caltrans comments 5/2022 iv. Caltrans to begin NEPA document development 6/2022
v. 30% Plans and const estimate for all alternatives considered 7/2023 vi. Meetings with Caltrans to choose preferred alternative 9/2023
2. Final design which is the Plan Specification and Estimates (PSE) delivery phase, is anticipated to commence in January 2024 and be complete by June 2025.
i. Only for preferred alternative
3. Construction is anticipated to begin in December 2025. i. Anticipate 36-48 month construction window
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$1,656,120 $947,657 $72,300,000 The Current Project Budget reflects design costs only.
The Total Project Budget Estimate includes construction cost and is planned to be funded using contributions
from San Luis Ranch, SLOCOG, Traffic Impact Fees,
County of San Luis Obispo, City Capital Outlay funds and debt financing. Staff are activity seeking grant funding to support project construction.
* The amount of working capital and debt financing to
support this project is dependent upon the ability to
acquire grant funding for this project.
Working Capital
~$42,300,000*
Debt Financed
~$30,000,000*
91439 - Mission Plaza Concept Plan Implementation
Status The Project is currently in the design phase and is at a design completion level of approximately 30% complete.
The planning application has been submitted and has been reviewed by the Community Development Department’s Planning staff. Planning and advisory body review and approval was completed on April 25, 2022 with project review and approval by the Cultural Heritage Commission (CHC). The design consultant will be preparing a revised construction cost estimate pending design review by the CHC. Building permit issuance is expected in early spring 2023, with construction beginning in late spring or early summer 2023.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$449,825 $119,891 $1,484,825 The Total Project Budget Estimate includes ongoing consultant services for project entitlements,
environmental review, and design work. The total
estimate also includes current figures for project
construction including soft costs. As the project
completes entitlements and enters detailed design, the
Working Capital
$1,484,825
Debt Financed
$0 budget will be updated based upon more refined project details and current known construction costs.
Budget Document Pg. 87
Capital Improvement Projects
Projects Completed to Date in FY 2021-22
As of the development of the Supplemental Budget, 24 projects have substantially completed construction.
This number includes projects approved in the 2021-23 Financial Plan and prior. The summary below reflects projects funded from the City’s various funds and shows the comprehensive enhancements that the CIP Engineering Program provides to provide a safe, welcome, clean and beautiful community.
The projects below support reliable delivery of water throughout the city, improve and maintain park facilities, prevent flooding in local creeks, improve the safety of City transportation infrastructure, and reduce greenhouse gas emissions, among other things.
Table C6: Projects Substantially Completed Construction in FY 2021-22 to Date (through 5/20/22) ID# Project# Fund Project
1 91425 Water Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation 2 91647 General Fire Station 1 HVAC Replacement
3 1000066 Water Bee Bee/Cuesta/Loomis Waterline Replacement 4 1000198 General Silt Removal 2021
5 91385-12 General Sinsheimer Irrigation and Stadium Drainage 6 91609 General Broad Street/Woodbridge Pedestrian Hybrid Beacon 7 1000196 General Mission Plaza Railing Upgrades
8 1000021 General Meadow Park Pathway Maintenance
9 91392 General Laguna Lake 2021 Maintenance Dredging Project 10 90742 General Meinecke Storm Drain Repair
11 1000111 General Swim Center Therapy Pool Boiler Replacement 12 1000163A Parking Downtown Parking Meter Pole Removal 13 1000167 General 2021 Downtown Pavement Improvement
14 1000090 Water/Sewer Jeffrey Sewer and Water Replacement 15 1000060 General Energy Efficient Lighting Retrofits - City Hall and Fire Station 1 16 1000190 General Emerson Fitness Park Equipment Replacement 17 1000180 Parking Downtown Crack Sealing
18 1000184 Parking Monterey and Broad Improvement
19* 1000180 Parking Sinsheimer Court Entrance Hardscape 20* 1000034 Water Reservoir 1 Cover
21* 91375 General Railroad Safety Trail Taft to Pepper
22* 1000031-13 General French Park Parking Lot
23* 91385 General Poinsettia Creek Walk
24* 91385 General Sinsheimer Hardscape Replacement
*Project is not fully complete (“Notice of Completion” a legal notification process not filed), but construction work is substantially done
In addition to the projects included in the list above, there are additional projects (including the Water Treatment Plant Energy Efficiency project that are anticipated to complete construction by the end of FY 2021-22.
Status of Projects Funded in 2021-23 Financial Plan
FY 2021-22 saw the start of the construction phase for many projects, which will carry into FY 2022-23. In addition, many other projects will begin construction in the coming year. The table below provides a status update on those projects that are funded in the 2021-23 Financial Plan. While the construction phase of Budget Document Pg. 88
Capital Improvement Projects
projects is often the community’s first view of the improvements that are being made, it is also the result of months to years of planning, outreach and design work that must be completed prior to making visible progress on a project.
The tables below list all projects funded in the 2021-23 Financial Plan and include the amount of funding approved in FY 2021-22 and FY 2022-23, as well as a brief status update on each, and indication about whether or not the project will begin construction in 2021-23 (for projects with a construction element).
The identified priority for all construction projects based on the project prioritization exercise described above is also included. To convey workload, the projects are sorted by the workgroup that is leading the projects. Projects that aren’t funded until the start of FY 2022-23 generally show a status of ‘N/A’, unless work is already underway by staff to ready the project for construction FY 2022-23.
Table C7: Projects Led By CIP Engineering (bold are project categories) ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
1 1000049 842 Palm Parking Structure
Maintenance
$400,000 $400,000 Design Yes 2
2 1000050 871 Marsh Street Structure
Maintenance
$400,000 $400,000 Design Yes 2
3 1000051 919 Palm Street Structure
Maintenance
$100,000 $100,000 Design Yes 2
4 1000029 Bridge Maintenance $0 $100,000 N/A No 6
5 1000052 Buchon-Santa Rosa Intersection
Improvements
$0 $400,000 Design Yes 5
6 1000075 Major Facility Maintenance $520,000 $437,500
7 Fire Station #1 Administration Bldg.
Roof
$270,000 $0 Design Yes 2
8 Jack House Roof and Widows Walk
Railing
$100,000 $0 Design No 4
9 Swim Center Therapy Pool Boiler $85,000 $0 Complete Complete Complete 10 City Hall Landing Repair $60,000 $0 Design Yes 2
11 HVAC Air Handler at Parking Services $5,000 $25,000 Design No 5 12 Corp Yard Fuel Island Siding /
Recoating of Fuel Island and
Dispensers
$0 $300,000 Design Yes 2
13 Fire Station #4 - Exterior Paint $0 $27,500 Design Yes 6 14 879 Morro - Roof $0 $15,000 N/A No 6
15 Ludwick and Senior Center - Exterior
Paint and Shell Rehab
$0 $30,000 N/A No 6
16 Ludwick Community Center - Roof and
Solar Replacement
$0 $40,000 N/A No 6
17 1000021 Meadow Park Pathways $350,000 $0 Complete Complete Complete 18 91385 Park Major Maintenance & Repairs $1,730,000 $55,000 19 Sinsheimer Stadium Irrigation and
Drainage Replacement
$650,000 $0 Complete Complete Complete
20 Railroad Bike path fencing $350,000 $0 Design Yes 5
21 Cheng Park Revitalization $300,000 $0 Design Yes 2
22 Poinsettia Creek Walk $215,000 $0 Complete Complete Complete 23 Sinsheimer Hardscape Replacement $135,000 $0 Complete Complete Complete 24 Mission Plaza Railing Upgrade $80,000 $0 Complete Complete Complete 25 Santa Rosa Barbecue Replacements $0 $7,500 N/A No 6
26 Jack House Arbor $0 $7,500 N/A No 6
27 Meadow Park Exercise/Par Course
Equipment Replacement
$0 $40,000 N/A No 6
Budget Document Pg. 89
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
28 1000031 Parking Lot Maintenance $175,000 $255,000
29 French Park $70,000 $0 Complete Complete Complete
30 Minor Repair of City Parking Lots $50,000 $25,000 Not started No 5 31 Fire Station 2 $45,000 $0 Design Yes 5
32 Meadow Park $10,000 $130,000 Design Yes 5
33 Ludwick Community Center $0 $10,000 N/A No 6
34 Santa Rosa Park $0 $20,000 N/A No 6
35 Islay Park $0 $35,000 Design Yes 2
36 Laguna Lake $0 $35,000 N/A No 6
37 1000102 Parking Lot Maintenance - Bus Yard $5,000 $500,000 Design Yes 4 38 1000032 Pedestrian and Bicycle Pathway
Maintenance
$20,000 $200,000
39 Pedestrian and Bicycle Pathway
Inventory and PCI Study
$20,000 $0 Study N/A 4
40 Railroad Safety Trail from Cal Poly to
Taft Street
$0 $50,000 N/A No 6
41 Madonna Inn Frontage Bike Pathway
(Madonna to Fernandez)
$0 $150,000 Design Yes 1
42 1000035 Pismo/Johnson/SL Creek Bank
Stabilization
$92,272 $0 Design No 3
43 1000033 Playground Equipment Replacement $110,000 $100,000 44 DeVaul Ranch Playground $60,000 $0 Design No 5
45 Vista Lago Mini Park Playground $50,000 $0 Design No 5 46 Mitchell Park Playground $0 $100,000 N/A No 6
47 1000084 Sewer Maintenance Hole Cover
Adjustments
$85,000 $25,000 Ongoing Yes 5
48 90849 Sidewalk Replacement and Installation $235,461 $250,000 49 Curb Ramps and Sidewalks $135,461 $150,000 Ongoing Yes 4 50 Street Tree Sidewalks $100,000 $100,000 Ongoing Yes 4 51 1000046 Silt Removal $210,000 $100,000 Design Yes 5
52 90742 Storm Drain System Replacement $910,000 $725,000 53 Drainage Infrastructure Replacement $860,000 $675,000 Design Yes 4 54 Trash Capture $50,000 $50,000 Design Yes 4
55 90346 Street Reconstruction & Resurfacing $3,592,702 $4,266,258 56 Pavement Management $3,592,702 $3,366,258 Design Yes 1 57 Concrete Street - Monterey - CA to
Santa Rosa
$0 $900,000 Design Yes 3
58 91740 Trench Repairs- Sewer $25,000 $25,000 Ongoing Yes 5 59 91147 Trench Repairs- Water $200,000 $200,000 Ongoing Yes 5 60 1000034 Water Storage Tank Maintenance $50,000 $1,355,000 61 Wash water tank #1 $40,000 $325,000 Design Yes 5
62 Reservoir 2 Cover Replacement $10,000 $950,000 Design No 5 63 Edna Tank Recoating $0 $80,000 N/A No 6
64 91149 Water Valve Cover Adjustments $50,000 $30,000 Ongoing Yes 5 65 1000506 Bus Shelter Replacements $105,000 $0 Design Yes 4 66 1000053 Bus Wash Replacement $75,000 $450,000 Not started No 5 67 1000055 City Hall Meeting Room TI $0 $130,000 Design Yes 2 68 1000516 Fire Station 3&4 Remodel Space Study
and Design
$25,000 $75,000 Design No 4
69 1000060 Lighting Energy Efficiency Retrofits $15,000 $0 Complete Complete Complete 70 1000522 Major Facility Replacements $200,000 $300,000 71 Police Station Replacement $100,000 $300,000 Design No 2 Budget Document Pg. 90
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
72 Parks and Recreation Interior Office
Rehabilitation
$100,000 $0 Const. Yes 1
73 90649 Mid-Higuera Bypass $100,000 $100,000 Design Yes 2 74 91439 Mission Plaza Concept Plan
Implementation
$0 $1,035,000
75 Phase 1 - Restroom Replacement and
Kiosk Café
$0 $1,035,000 Design Yes 2
76 91252 Prado Road Bridge & Road Widening $7,070,100 $14,972,220 Design No 2 77 1000535 Transit Facility EV Charging
Infrastructure
$715,000 $0
78 EV Infrastructure Upgrades Behind the
Meter
$615,000 $0 Design Yes 2
79 EV Charger Installations $100,000 $0 Design Yes 2
80 1000538 Vault Room Addition Design Study $0 $15,000 N/A No 6 81 1000091 Verde, Luneta, Ramona Pipe
Replacement
$1,276,000 $0 Design Yes 1
82 1000539 Wastewater Collections System
Improvements
$160,000 $3,860,000
83 Morro, Mill, Santa Rosa $135,000 $1,485,000 Design No 5 84 Islay, Henry, Sierra Way $25,000 $1,825,000 Design No 5 85 San Jose, Ramona, Monte Vista,
California
$0 $25,000 N/A No 6
86 Taft, Hathaway, Phillips, Buena Vista,
Loomis
$0 $25,000 N/A No 6
87 Murray, Chorro, Meineke $0 $500,000 Design Yes 2
88 1000545 Waterline Replacement: California
Ave - Stafford to Mill
$140,000 $1,650,000 Design No 3
89 1000550 WRRF And Wastewater Collection
Shop
$150,000 $350,000 Design No 3
90 1000502 Active Transportation Plan
Implementation
$200,000 $200,000
91 Area Sealing Projects Complete Street
Components
$200,000 $200,000 Design/
Ongoing
Yes 2
92 1000501 Bob Jones Trail and RRST Solar
Lighting
$100,000 $1,350,000 Design No 3
93 1000508 City Hall Lighting $0 $15,000 N/A No 6
94 1000057 Development Related Park
Improvements
$1,520,000 $4,210,026
95 Orcutt Area - Neighborhood Park $1,200,000 $0 Design No 3 96 Orcutt Area - Linear Park $200,000 $825,000 Design Yes 3 97 Orcutt Area - Pocket Park $80,000 $350,000 Design No 3 98 Orcutt Area - Trail Junction $40,000 $160,000 Design No 3 99 Laguna Lake Improvements $0 $2,875,026 Design No 6
100 1000512 Downtown Zig-Zag Lighting $250,000 $0 Design No 4 101 1000513 Electric Vehicle Charging Station at
Various Facilities
$175,000 $100,000
102 Utilities - 879 Morro $75,000 $0 Design Yes 3
103 Corporation Yard $50,000 $0 Design Yes 3
104 Parks and Recreation $50,000 $0 Design Yes 3
105 Various City Facilities $0 $100,000 N/A No 3
106 1000514 Emerson Park Amenity Upgrades and
Beautification
$2,810,000 $0 Design No 3
107 99110 Laguna Lake Dredging and Sediment
Management Project Implementation
$840,000 $0
108 Dredging and Shoreline Restoration $840,000 $0 Complete Complete Complete Budget Document Pg. 91
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
109 91683 North Broad Street Neighborhood
Park
$175,000 $0 Design Yes 2
110 90435 Cultural Arts District Parking Structure
(formerly the Palm - Nipomo Parking
Structure)
$850,000 $5,582,000
111 PG&E Relocation $700,000 $0 Design Yes 2
112 Adobe Removal $150,000 $0 Design Yes 2
113 Site Clearing and Preparation $0 $5,432,000 Design Yes 2 114 CM Services $0 $150,000 Design Yes 2
115 91613 Prado Road Interchange $500,000 $5,849,571
116 PA/ED Phase $500,000 $0 Study No 2
117 Design Phase $0 $4,004,660 Study No 2
118 Construction Phase $0 $1,844,911 Study No 2
119 1000528 Recycled Water Broad Street - Tank
Farm to Aerovista
$45,000 $1,040,000 Design No 5
120 1000037 South Street Median Landscaping $240,000 $0 Design Yes 5 121 1000500 CIP Project Delivery Augmentation $500,000 $1,000,000 In progress N/A 2 122 Total $27,496,535 $52,207,575
Table C8: Projects Led by Fleet Maintenance and Fire CIP Engineering The fleet replacements led by Fleet Maintenance and Fire do not have a construction component. This table does not include information about estimated construction start timeframes and the projects below were not prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
2021-22 2022-23
1 Fleet Maintenance
2 1000518 Fleet Replacement: CDD $0 $74,000
3 Building & Safety SUV (#0129, <> Chevy Bolt EV) $0 $37,000 N/A 4 Building & Safety SUV (NEW <> Chevy Bolt EV) $0 $37,000 N/A 5 1000519 Fleet Replacement: Parks and Recreation $139,000 $103,000 6 Golf Course Mower (1201) $65,000 $0 Ordered
7 Masticator attached to Skid-Steer $35,000 $0 Not ordered yet 8 Parks and Recreation Event Trailer $20,000 $0 Not ordered yet 9 Golf Course Trailer (0506) $10,000 $0 Not ordered yet 10 Dump Trailer $9,000 $0 Not ordered yet
11 Parks and Recreation Minivan (0802) $0 $48,000 N/A
12 Parks and Rec Ranger Truck, F350 HD Towing $0 $55,000 N/A 13 1000553 Fleet Replacement: Police $220,000 $235,000
14 Police Patrol Hybrid SUV (2 Vehicles per Year) $130,000 $130,000 Ordered 15 Police SNAP SUV Hybrid (0818) $50,000 $0 Received, currently being built
16 Police Motorcycles $40,000 $40,000 2 Received, currently being built
17 Police Investigations SUV $0 $65,000 N/A
18 1000520 Fleet Replacement: Public Works $631,000 $298,000 19 Streets Maintenance F550 Truck with Hooklift Bed(0843) $150,000 $0 Not ordered yet 20 Streets Maintenance F550 Truck with Utility Bed and
Crane(0842)
$135,000 $0 Not ordered yet
21 Fleet Maintenance (Corp Yard) Stationary Generator (200kw) $100,000 $0 Not ordered yet 22 Park Maintenance Mower (1007,1504) $75,000 $0 Not ordered yet 23 Streets Maint Asphalt Zipper Safety Improvements (1802) $75,000 $0 Cost increase, not pursuing
24 Streets Maint 2 Axle Kneeling trailer (0420) $30,000 $0 Not ordered yet 25 Facilities Maintenance 3/4 ton Pickup with Utility Bed (0612) $0 $60,000 N/A 26 Parks Maintenance Trailer (9915) $0 $8,000 N/A
Budget Document Pg. 92
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
2021-22 2022-23
27 Park Maintenance Tractor (0218) $0 $75,000 N/A
28 Parking 1/2 ton Pickup (0813) $0 $55,000 N/A
29 Parking Scooters (1403,1404 Go-4's) replc with 1 LPR equipped vehicles
$0 $75,000 N/A
30 Parks Maintenance Trailers (0007, 9405) $0 $10,000 N/A 31 Parks Maintenance Trailer (0320) $0 $15,000 N/A
32 Engineering Pickup (2), 3 Yr Temp $66,000 $0 Ordered 33 1000521 Fleet Replacement: Utilities $170,000 $535,000 34 WRRF F550 Flatbed with crane (0611-F550 Diesel) $80,000 $0 Not ordered yet 35 WRRF Forklift (0622) $40,000 $0 Not ordered yet
36 Water Resources - Chevy Bolt $35,000 $0 Ordered
37 Water Distribution Signboard (0613) $15,000 $0 Not ordered yet 38 Sewer WWCL Tilt-Trailer (0616) $0 $30,000 N/A
39 Whale Rock Trailer (0417) $0 $15,000 N/A
40 Sewer Hydrocleaner (0718) $0 $475,000 N/A
41 Water Distribution Trailer (0235) $0 $15,000 N/A
42 Fire
43 1000554 Fleet Replacement: Fire $275,000 $465,000
44 Fire Medium Duty Truck with Utility Bed $125,000 $0 Ordered 45 Fire 1/2 ton Truck $75,000 $0 Received, currently
being built
46 Fire Heavy Duty Truck (Type 3 Wildland) $0 $415,000 N/A 47 Fire Compact Truck $0 $50,000 N/A
48 Open Space Rescue 4x4 1/2 Ton Truck $75,000 $0 Received, currently being built
49 Total $1,435,000 $1,710,000
Table C9: Projects Led by Information Technology
The IT replacements led by Information Technology do not have a construction component. This table does not include information about estimated construction start timeframes and the projects below were not prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
2021-22 2022-23
1 1000074 IT Replacement $1,112,558 $606,445
2 911 Phone System $250,000 $0 Study
3 Police CAD Hardware (Servers and Storage) $233,000 $117,000 Study 4 Audio Recording System Replacement $150,000 $0 Design 5 VMware Infrastructure Upgrade $131,250 $0 Complete
6 Radio Handhelds & Mobiles $116,758 $0 Not started
7 IT Pipes Inspection Software and Licenses $82,250 $0 Complete 8 Public Safety Specialized Surveillance cameras (PODs) Replacement (9K ea, 14 total)
$63,000 $54,000 Design
9 Uninterruptible Power Supplies (UPS’s Servers and Storage) $51,000 $0 Complete 10 Asset Management (Cityworks - Utilities Integration) $35,300 $0 Implementation 11 City SAN $0 $198,500 N/A
12 PD SAN $0 $145,000 N/A
13 Wireless System Citywide $0 $91,945 N/A
14 Total $1,112,558 $606,445
Table C10: Projects Led by Parks and Recreation
Many of the projects led by Parks and Recreation do not have a construction component. This table does not include information about estimated construction start timeframesfor all projects and not all projects below were prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
1 1000503 Annual Public Art Maintenance and
Projects
$142,500 $142,500
2 Small Public Art Projects $102,500 $102,500 Ongoing Yes N/A Budget Document Pg. 93
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
3 Utility Box Beautify $20,000 $20,000 Not Started N/A 4 4 Public Art Annual Asset Maintenance $20,000 $20,000 Ongoing Yes 3 5 1000510 Downtown Public Art Installations $200,000 $0 Ongoing Yes N/A 6 1000030 Laguna Lake Golf Course Maintenance $20,000 $20,000 Ongoing Yes N/A 7 91397 Open Space Maintenance $85,000 $105,000
8 General Open Space Maintenance $60,000 $80,000 Ongoing Yes N/A 9 Open Space Fencing $25,000 $25,000 Complete Complete N/A 10 1000532 Roundabout Public Art Installations $300,000 $300,000 Design Yes N/A 11 1000526 Parks and Rec General Plan
Implementation
$200,000 $200,000 Study N/A N/A
12 Total $947,500 $767,500
Table C11: Projects Led by Public Works Maintenance
The projects led by Public Works Maintenance were not prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 2021-22 2022-23
1 Facilities Maintenance
2 1000075 Major Facility Maintenance $252,500 $195,700
3 Energy Management Controls Upgrade $75,000 $75,000 Const. Yes 4 Fire Station 1 Campus Roof Access Ladders $50,000 $0 Not started Yes 5 Swim Center Pool Water Chemical Regulator $50,000 $0 Design Yes 6 IT Room Heat Pump Replacements $20,000 $0 Const. Yes
7 Facility Roll Up Door Replacements - Various
Locations
$17,000 $15,000 Ongoing Ongoing
8 Hydration Stations $15,000 $15,000 Design Yes
9 ADA Transition Plan Implementation $10,500 $10,500 Design Yes 10 Swim Center Olympic Pool Thermal Blankets $5,000 $0 Not started Yes 11 Swim Center Bath House Ceiling $5,000 $0 Not proceeding N/A 12 Police Evidence Storage Bldg. Roof $5,000 $22,200 Not started Yes 13 Swim Center Furnaces (2 Furnaces) $0 $40,000 N/A N/A 14 Swim Center Auto Vacuum $0 $18,000 N/A Yes
15 91385 Park Major Maintenance & Repairs $20,000 $20,000 16 ADA Transition Plan Implementation $20,000 $20,000 Ongoing N/A 17 1000157 Banner Arms, Bench Arm Rests, Signs $100,000 $25,000 In Progress Yes 18 Parks Maintenance
19 91385 Park Major Maintenance & Repairs $85,000 $85,000 20 Parks Play Surfacing $30,000 $30,000 Complete Complete 21 Water Stations and Supply Lines $25,000 $25,000 Design complete Yes 22 Concrete Bench & Table Replacement Various
Locations
$15,000 $15,000 Started Yes
23 Irrigation Mainline Leak Repair $15,000 $15,000 Started Yes 24 Streets Maintenance
25 1000511 Downtown Safety Enhancements $400,000 $0 Started Yes 26 Urban Forest
27 1000027 Urban Forest Maintenance $175,000 $175,000
28 Urban Forest Maintenance $175,000 $175,000 Ongoing Yes 29 Total $1,032,500 $500,700
Table C12: Projects Led by Traffic
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority*
2021-22 2022-23
1 91612 Neighborhood Traffic Improvements $75,000 $75,000 Design Yes 3 2 91616 Streetlights - Annual Asset
Maintenance
$75,000 $75,000
3 Pathway Lighting Various Locations $75,000 $75,000 Study No 4 4 90943 Traffic Signs & Striping Maintenance $25,000 $25,000 Design Yes 4 Budget Document Pg. 94
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority*
2021-22 2022-23
5 1000073 Transportation Safety & Operations $50,000 $50,000 Design Yes 4 6 91503 California & Taft Roundabout $300,000 $2,798,000 Design No 2 7 91610 Higuera St. Widening - Bridge to Elks $510,000 $0 Design Yes 3 8 1000502 Active Transportation Plan
Implementation
$350,000 $350,000
9 Pedestrian Facility Improvements $100,000 $100,000 Design/ Ongoing
Yes 2
10 RRST (Tiburon to Orcutt) Preliminary
Engineering & ROW
$100,000 $0 Design Yes 3
11 Bicycle Facility Improvements $100,000 $100,000 Design/ Ongoing
Yes 4
12 Active Transpiration Plan Tier 1
Network Implementation
$50,000 $150,000 Design/
Const.
Yes 3
13 1000036 Cerro San Luis Neighborhood
Greenway Plan Implementation
$2,450,000 $0
14 Phase II $2,450,000 $0 Design Yes 2
15 1000056 Development Agreement - City Share $0 $715,000 16 600 Tank Farm $0 $715,000 N/A N/A N/A
17 1000155 Open SLO $200,000 $0
18 Downtown Renewal - Supplemental
funding for Curbside Parklets
$200,000 $0 Const. Yes 3
19 1000537 Transportation Monitoring &
Modeling Update
$40,000 $115,000 Const. Yes 5/6
20 Total $4,075,000 $4,203,000
*Only construction projects are prioritized.
Table C13: Projects Led by Utilities
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
1 1000063 Fire Hydrants $40,000 $40,000 Const. Yes 5
2 91739 Inflow/Infiltration Reduction $200,000 $250,000 Const. Yes 5 3 91736 Infrastructure Renewal Strategy
Report Update
$0 $250,000
4 Flow Study $0 $250,000 N/A No 6
5 1000150 Sustainable Groundwater
Management Act GSP
$150,000 $150,000 Study No 4
6 1000540 Water Distribution System Hydraulic
Model Update
$100,000 $0 Study No 5
7 1000062 Water Meters and Boxes $286,000 $330,000 Const. Yes 5 8 99653 Treatment Major Facilities
Maintenance
$274,000 $109,000
9 Ozone System Maintenance $125,000 $40,000 Const. Yes 5 10 WTP Roof Repair $80,000 $0 Not started No 5
11 Air Compressor and Dryer
Maintenance
$36,000 $36,000 Const. Yes 5
12 Chemical System Maintenance $33,000 $33,000 Const. Yes 5 13 1000527 Wastewater Collections System -
Point Repairs
$50,000 $50,000 Ongoing Yes 5
14 1000542 Water Treatment Plant Major Facility
Maintenance
$275,000 $180,000
15 Cityworks Integration (water) $50,000 $90,000 Not started No 5 16 Lab TOC Analyzer Replacement $0 $30,000 N/A No 6
17 Actiflo Train #2 Mixer Bearing/Gear $0 $35,000 N/A Yes 6 18 Facility Master Plan $150,000 $0 Study No 5
19 Aluminum Bulk Tank #1 Replacement $50,000 $0 Const. Yes 5 20 Transfer Pump CLA-VAL Re-build $25,000 $0 Const. Yes 5 21 Package Thickener $0 $25,000 N/A No 6
Budget Document Pg. 95
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
22 1000065 Waterline Replacements - Point
Repair
$590,000 $0 Const. Yes 5
23 91335 Whale Rock Reservoir - Major Facility
Maintenance
$815,000 $145,000
24 Spillway Drain Repairs $765,000 $0 Design Yes 5
25 Stilling Basin $30,000 $90,000 Design Yes 5
26 Reservoir Fencing $20,000 $20,000 Const. Yes 5
27 Whale Rock Reroof of Shop and
Residence
$0 $35,000 N/A Yes 6
28 91617 Whale Rock Transmission Pipeline $60,000 $510,000 29 Transmission Pipeline Repairs $60,000 $510,000 Not started Yes 5 30 1000077 WRRF Major Maintenance $340,000 $520,000
31 Cityworks Integration $50,000 $100,000 Not started No 5 32 Digester Portable Heaters $50,000 $0 Const. Yes 5
33 Coating Maintenance $15,000 $0 Not started No 5
34 Headworks Grit Piping and Blowers $0 $95,000 N/A No 6 35 Headworks Grit Pump $0 $175,000 N/A No 6
36 Lab Improvements $0 $150,000 N/A No 6
37 Chain Link Fence Extension $175,000 $0 Not started Yes 5 38 Security Lighting $50,000 $0 Not started No 5
39 1000530 Recycled Water Tank $237,500 $50,000
40 Tank Site Fencing $87,500 $0 Not started No 5
41 SH Line and Pump & Bioassay Test $150,000 $50,000 Const. Yes 5 42 91369 Wastewater Lift Station
Rehabilitation: Airport Lift Station
$2,020,000 $0 Design No 5
43 1000082 Wastewater Lift Station
Rehabilitation: Silver City Lift Station
$0 $70,000 Not started No 6
44 1000551 WRRF - Digester Flare Upgrade $0 $100,000 N/A No 6 45 91219 WRRF Upgrade $15,920,563 $426,625
46 Construction $11,069,088 $22,335 Const. Yes 1
47 Construction Management $3,088,281 $257,357 Const. Yes 1 48 Office Engineering $1,235,313 $102,943 Const. Yes 1
49 Program Management $527,881 $43,990 Const. Yes 1
50 1000083 Wastewater Lift Station
Rehabilitation: New Buckley Lift
Station
$396,000 $0 Const. Yes 5
51 1000541 Water Treatment Plant - Power
Storage Units Tesla Battery Grant
$30,000 $0 Const. Yes 3
52 1000126 Water Treatment Plant Emergency
Power – PSPS
$465,000 $0 Design Yes 3
53 Total $22,249,063 $3,180,625
Table C14: Projects Led by Other Groups
Many of the projects led by other groups do not have a construction component. This table does not include information about estimated construction start timeframes for all projects and not all projects below were prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority*
2021-22 2022-23
1 Administration
2 1000507 City Facility Energy Infrastructure
Plan
$100,000 $0 Started N/A 4
3 Community Services Group
4 1000027 Urban Forest Maintenance $140,000 $0
5 Urban Forest Master Plan $140,000 $0 Started Yes N/A
6 Developer
7 1000056 Development Agreement - City
Share
$120,000 $0
Budget Document Pg. 96
Capital Improvement Projects
8 Avila Ranch - Buckley Extension
Class I
$120,000 $0 Const. Yes N/A
9 Natural Resources
10 99837 Open Space Acquisition $250,000 $250,000 In progress N/A N/A 11 Parking
12 1000525 Parking Enforcement Equipment
at Gate Entry
$40,000 $90,000 Design Yes 4
13 Transit
14 1000505 Bus Replacements with EV $1,854,000 $1,910,000 Ordered N/A N/A 15 1000536 Transit Supervisor ADA EV Van $70,000 $0 Not ordered yet N/A N/A 16 Total $2,574,000 $2,250,000
*Only City construction projects are prioritized.
FY 2022-23 Capital Improvement Plan
As noted, the FY 2022-23 Supplemental Budget does not recommend an overhaul of the CIP. However, staff is recommending the creation of new projects to address emergent needs, as well as budget changes to several existing projects. These changes are summarized in the tables below.
New Projects Recommended for FY 2022-23
The tables below provide a summary of the new projects recommended for funding in FY 2022-23, sorted by fund. Many of these new requests reflect emergent or urgent needs. The projects for Parking, Transit and Fire are recommended to be funded either with fund balances or reserves specific to those funds.
Utilities has identified projects that can be delayed to free up the budget needed to support the new projects (the delayed projects are noted below in the ‘Recommended Changes to Existing Projects’ table following this section.
Table C15: New Projects in Parking Fund
Project No.:
1000163
Project Name:
Installation of pay stations on Upper Monterey Street
Proponent Department:
Public Works
Project Summary: Council approved the expansion of paid parking in the upper Monterey area with the 2021-23 Financial Plan as part of the long-term approach to address the Parking Fund's health and ensure it was able to meet debt service. This project is for the infrastructure needed to complete the implementation of paid parking.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Parking $122,000 Parking fund undesignated capital N/A
Project No.:
1000163
Project Name:
Installation of pay stations in the Railroad Square parking lots Proponent Department:
Public Works
Project Summary: Council approved the expansion of paid parking in the Railroad Square parking lots with the 2021-23 Financial Plan as part of the long-term approach to address the Parking Fund's health and ensure it was able to meet debt service. This project is for the infrastructure needed to complete the implementation of paid parking.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Parking $66,200 Parking fund undesignated capital N/A
Table C16: New Projects in Public Safety Equipment Fund Project No.: NEW Project Name:
Fire Department Extractors
Proponent Department:
Fire
Project Summary: Project to install washing machine extractors at Stations 2, 3 and 4. Washing Machine Extractors are used to extract carcinogenic material from personal protective equipment after structure fires or hazardous materials exposures. Currently the department only has one extractor located at Station 1, which cannot keep up with demand after a large incident. Project was paused in FY 2020 due to COVID-19 and is being funded through the Public Safety Equipment Fund.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Public Safety
Equipment
$135,000 Public Safety Equipment Fund Budget was set at $120,000 in January 2020.
Increase to $135,000 to accommodate
inflation.
Budget Document Pg. 97
Capital Improvement Projects
Table C17: New Projects in Sewer Fund
Project No.: NEW Project Name:
Chorro - Palm to Monterey Pipeline Replacement
Proponent Department:
Utilities
Project Summary: The City’s wastewater collection system includes approximately 140 miles of sewer pipelines with some portions of the system being older than 100-years. The older areas of the wastewater collection system are near the end of their useful life and have been prioritized based on need as recorded by field inspections. The objective of this project is to replace sewer pipeline along Chorro from Palm to Monterey Street. The existing ductile iron pipe crossing the creek experienced a corrosion problem and is need of replacement as a high priority project since the sewer system serves key components of the downtown area. The new pipeline will meet City Engineering Standards and will provide resiliency in the wastewater collection system against corrosion problems normally encountered near the creek.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Sewer $60,000 Project is recommended to be funded through the reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
which are recommended to be deferred to a future
fiscal year.
FY 2022-23 recommended project budget
funds design for the project. An additional
$253,000 will be recommended in FY 2023-
24 for project construction.
Table C18: New Projects in Transit Fund
Project No.: NEW Project Name:
Tenant Improvements at 1260 Chorro
Proponent Department:
Public Works
Project Summary: This project will redesign the 1260 Chorro Street office to accommodate all of the mobility services that the City offers.
Transit Services staff will be relocating and share the office currently occupied by Parking Services. This project will provide one counter where the community can reach both services.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Transit $250,000 Undesignated Capital Transit Fund N/A
Table C19: New Projects in Water Fund
Project No.: NEW Project Name:
Johnson - Iris to Bishop Pipeline Replacement
Proponent Department:
Utilities
Project Summary: The objective of the project is to replace a critical water transmission pipeline along Johnson Avenue from Iris to Bishop Street. The existing cast iron pipe has been deteriorating faster than anticipated and is need of replacement as a high priority project given this pipeline serves a major hospital and other essential facilities along Johnson Avenue. The new pipeline will meet standards by the American Water Works Association (AWWA) that will provide resiliency in the distribution network against variations in pressure and flows for current and future developments.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Water $180,000 Project is recommended to be funded through the reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
which are recommended to be deferred to a future
fiscal year.
FY 2022-23 recommended project budget
funds design for the project. An additional
$1,890,000 will be recommended in FY 2023-
24 for project construction.
Project No.: NEW Project Name:
Recycled Water System Retrofits
Proponent Department:
Utilities
Project Summary: The City operates and maintains the recycled water system comprised of one distribution zone, one booster-pump station, and a concrete tank located at the Water Resource Recovery Facility (WRRF). With the on-going efforts for water conservation, this project will convert existing irrigation systems from potable water use to recycled water systems. In 2017, a series of parcels were identified as priority projects that could provide water conservation measures of the City’s potable water portfolio by changing into recycled water systems; “purple pipe". The objective of this project is to follow the recommendations from the 2017 study and expand the use of recycled water systems within the City’s service areas approved by the Regional Board.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Water $200,000 Project is recommended to be funded through the reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
FY 2022-23 recommended project budget
funds design for the project. An additional
which are recommended to be deferred to a future
fiscal year.
$200,000 will be recommended in FY 2024-
25 further efforts.
Budget Document Pg. 98
Capital Improvement Projects
Project No.:
1000542-05
Project Name:
Water Treatment Plant Major Facility Maintenance
Proponent Department:
Utilities
Project Summary: Annual Asset Replacement - The City’s Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet changing water quality requirements. In April of 2008, another major upgrade project was completed that replaced older equipment, added additional storage capacity for treated water, and enhanced treatment processes. The ongoing maintenance of the facilities and equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and ensure staff’s ability to operate the plant and treat water to State and Federal standards. The proposed maintenance projects include asset replacement of the polymer mixing unit’s gears, bearings, and appurtenances related to the coagulation system needed for water treatment and disinfection.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Water $210,000 Project is recommended to be funded through the reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
which are recommended to be deferred to a future
fiscal year.
FY 2022-23 recommended project budget
funds for replacement of the unit. An
additional $75,000 will be recommended in
FY 2024-25 for further retrofits related to the
polymer mixing system.
Recommended Changes to Existing Projects
The table below summarizes recommended changes to existing project budgets for FY 2022-23.
Recommended changes to project budgets are based on the following:
1. Deferral of projects to future years in order to free up funding to address the new projects noted above that are needed to address urgent needs.
2. Reclassification of expenditures as capital or operating as appropriate.
3. Receipt of additional funding from outside agencies.
4. Deferral of projects in order to fund others that are exceeding budget based on initial estimates or the Capital Reserve.
5. Increase to those projects that are expected to exceed budget.
Table C20: Changes to Existing Projects
ID# Project# Project Name Proponent
Dept Fund
22-23 Budget
in 2021-23
Financial Plan
22-23
Revised
Budget
Change
1 1000500 CIP Project Delivery Augmentation Public
Works
Capital
Outlay
$1,000,000 $116,540 $(883,460)
Notes: Change reflects reallocation of capital budget to Public Works' operating budget to cover cost of 4.00 FTE new positions added at FY 2021-22 Mid-Year. In addition, the change reflects the recommended addition of 1.00 FTE Maintenance Supervisor to create additional capacity within Public Works to deliver capital and maintenance projects. 2 1000027 Urban Forest Maintenance Public
Works
Capital
Outlay
$175,000 $375,000 $200,000
Notes: Change is due to a correction of an approved FY 2021-22 Mid-Year request to add $200,000 to the operating budget for annual pruning and watering costs. This expenditure should have been classified as a capital expenditure and is being moved to an existing capital project for FY 2022-23 via adoption of the Budget Supplement. 3 90649 Mid-Higuera Bypass Public
Works
Capital
Outlay
$100,000 $150,000 $50,000
Notes: Funding is allocated from the County yearly through approval by the Zone 9 Advisory Committee. For FY 2022-23, additional funding of $50,000 has been approved in support of ongoing design and environmental permit application work for the Mid-Higuera Bypass Project. The funding source for this work is County Zone 9, with funding expended through Capital Outlay. 4 1000046 Silt Removal Public
Works
Capital
Outlay
$100,000 $130,000 $30,000
Notes: Funding is allocated from the County yearly through approval by the Zone 9 Advisory Committee. For FY 2022-23, additional funding of $30,000 has been approved in support of ongoing Silt Removal Projects, for a total FY 2022-23 budget appropriation of $130,000. The funding source for this work is County Zone 9, with funding expended through Capital Outlay. 5 1000055 City Hall Meeting Room TI Admin Capital
Outlay
$130,000 $260,000 $130,000
Budget Document Pg. 99
Capital Improvement Projects
ID# Project# Project Name Proponent
Dept Fund
22-23 Budget
in 2021-23
Financial Plan
22-23
Revised
Budget
Change
Notes: Project is currently in the final design phase and is anticipated to be constructed in FY 2022-23. Current project estimates indicate that the $130,000 initially appropriated is insufficient to construct the project, and an additional budget allocation of $130,000 is necessary.
6 1000031 Parking Lot Maintenance –
Meadow Park and Minor Repair of
City Parking Lots
Public
Works
Capital
Outlay
$255,000 $100,000 $(155,000)
Notes: The parking lot maintenance activities funded in this projects are in various phases. Staff is recommending deferral of Meadow Park parking lot maintenance ($130,000) to the 2023-25 Financial Plan, as well as reallocation of $25,000 planned for minor repairs of City parking lots in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. The remaining funding in this project will fund other parking lot maintenance projects in FY 2022-23. 7 90742 Storm Drain System Replacement –
Woodbridge Runoff
Public
Works
Capital
Outlay
$725,000 $550,000 $(175,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. This project is recommended for deferral as the project is not expected to need construction funding until the 2023- 25 Financial Plan. The remaining funding in this project will fund other storm drain system replacements in FY 2022-23. 8 1000052 Buchon-Santa Rosa Intersection
Improvements
Public
Works
Capital
Outlay
$400,000 $150,000 $(250,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. Due to staffing constraints, final project design is not expected to be complete until FY 2023-24 and therefore construction funding may be deferred until the next Financial Plan period. 9 1000029 Bridge Maintenance Public
Works
Capital
Outlay
$100,000 $0 $(100,000)
Notes: Staff is recommending reallocation of funding for bridge maintenance projects in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. Due to staffing constraints, final project design for the next phase of bridge is not complete and therefore construction funding may be deferred until the next financial plan period 10 1000032 Pedestrian and Bicycle Pathway
Maintenance - Railroad Safety Trail
from Cal Poly to Taft Street
Public
Works
Capital
Outlay
$200,000 $150,000 $(50,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. Due to staffing constraints, final project design for the next phase of pathway maintenance is not complete and therefore construction funding may be deferred until the next financial plan period. The remaining funding in this project will fund other pedestrian and bicycle pathway maintenance projects in FY 2022-23. 11 1000508 City Hall Lighting Public
Works
Capital
Outlay
$15,000 $0 $(15,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. This budget for design project will be incorporated into a future planned CIP for improvements to the bus stops adjacent to City Hall, utilizing transit funding
12 1000075 Major Facility Maintenance -
Ludwick Community Center Roof
and Solar
Public
Works
Capital
Outlay,
Parking,
Sewer,
Water
$633,200 $593,200 $(40,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. Due to staffing constraints, this project is not expected to enter design until sufficient staffing resources are available. The remaining funding in this project will fund other major facility maintenance projects in FY 2022-23. 13 91385 Park Major Maintenance & Repairs
- Santa Rosa Barbeque
Replacements
Public
Works
Capital
Outlay
$160,000 $152,500 $(7,500)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. Due to staffing constraints, project design is not expected to begin until FY23/24 and therefore design funding may be deferred until the next Financial Plan period. The remaining funding in this project will fund other park maintenance and repair projects in FY 2022-23.
14 91503 California & Taft Roundabout Public
Works
Capital
Outlay &
Developer
Cont.
$2,798,000 $78,000 $(2,720,000)
Notes: Project is in progress, but construction is not anticipated to begin until FY 2023-24 due to delays with right-of-way acquisition.
In addition, staff is pursuing grant funding for this project which may decrease City costs. The funding that is being deferred to the Budget Document Pg. 100
Capital Improvement Projects
ID# Project# Project Name Proponent
Dept Fund
22-23 Budget
in 2021-23
Financial Plan
22-23
Revised
Budget
Change
2023-25 Financial Plan is recommended to be allocated to projects in need of additional funding in FY 2022-23 and the Capital Reserve.
15 90346 Street Reconstruction &
Resurfacing - Pavement
Management
Public
Works
Capital
Outlay &
SB1
$4,266,258 $4,851,258 $585,000
Notes: Project budget is being modified for several purposes:
1. To transfer $900,000 to the Capital Reserve to partially reimburse use of $1,000,000 used in FY 2021-22 to advance construction of the Area 6 & 7 Curb Ramps ahead of the Summer 2022 Slurry Seal project; and
2. To adjust for a forecasted LRM fund imbalance in FY 2022-23; and
3. In mid-May, the City received two bids for this project which were both significantly over the engineer’s estimate. On June 21, 2022, staff will recommend that Council award a contract to the lowest responsive bidder. The recommendation to proceed with this project is due to the fact that deferral of road maintenance activities results in more expensive rehabilitation treatments being required in the future. In addition to the $1,585,000 recommended to be funded by the deferral of projects initially planned for FY 2022-23, staff also seek approval of budget amendment requests in the current year to reallocate funding from the Jack House Roof and Windows Walk Railing maintenance project ($100,000) and South Street Median Landscaping project ($240,000) in order to fully fund the additional $1,925,000 for this project. 16 1000163 Multi-space pay station installation
in the downtown
Public
Works
Parking $0 $800,000 $800,000
Notes: This project is the continuation for replacement of single space meters with multi-space pay stations. This request replaces half of the remaining single space coin meters with credit card capable pay stations. This project will be funded through working capital.
17 1000542-07 Water Treatment Plant Major
Facility Maintenance – Cityworks
Integration Plan Implementation
Utilities Water $90,000 $0 $(90,000)
Notes: Project start is recommended to be deferred to FY 2024-25 to fund new projects recommended as a result of urgent needs.
The Cityworks Software Implementation task has been reprioritized. 18 1000542-01 Water Treatment Plant Major
Facility Maintenance – Package
Thickener
Utilities Water $25,000 $0 ($25,000)
Notes: The Package Thickener project has been reprioritized and the project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs. 19 1000034-02 Water Storage Tank Maintenance –
Edna Tank Recoating
Utilities Water $80,000 $0 $(80,000)
Notes: The Edna Tank Internal Coatings Replacement project has been reprioritized and the project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs. 20 1000034-03 Water Storage Tank Maintenance –
Wash Water Tank #1 Replacement
Utilities Water $325,000 $0 $(325,000)
Notes: The Wash Water Tank #1 Replacement project has been reprioritized and the project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs. 21 91147 Water Utility Trench Repairs Utilities Water $200,000 $0 $(200,000) Notes: Project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs. 22 1000082 Sewer Lift Station Replacement -
Silver City
Utilities Sewer $70,000 $0 $(70,000)
Notes: Project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs. 23 1000077 WRRF Major Facility Maintenance –
Lab Improvements
Utilities Sewer $520,000 $370,000 $(150,000)
Notes: The Lab Improvements project has been reprioritized and the project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs. The remaining funding in this project will fund other WRRF maintenance and projects in FY 2022-23.
24 91739 Inflow and Infiltration Reduction Utilities Sewer $250,000 $0 $(250,000) Notes: Project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs. 25 1000521-03 Fleet Replacement: Utilities –
Sewer Hydrocleaner
Utilities Sewer $475,000 $0 $(475,000)
Notes: At FY 2021-22 Mid-Year, the City Council approved Resolution 11289 which made Sewer funds available to purchase this vehicle in FY 2021-22 rather than in FY 2022-23. This change in the FY 2022-23 Supplement is reflective of prior Council action which impacts the FY 2022-23 budget.
Budget Document Pg. 101