CC 2016-02-23_12b FY2015-16 Mid Year Budget Report
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF FISCAL YEAR 2015-16 MID-YEAR BUDGET
REPORT
DATE: FEBRUARY 23, 2016
RECOMMENDATION:
It is recommended the City Council:
1. Approve detailed budget adjustments listed in the Mid-Year budget report;
2. Approve Schedule A;
3. Approve requests for additional appropriations in the General Fund, Sales Tax Fund
and Water Fund; and
4. Adopt a Resolution establishing or amending the job description and salary range for
the positions of Planning Technician, Building Permit Technician and Planning
Manager.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The General Fund ending balance will be impacted by the approval of the recommended
revenue and appropriation adjustments as follows:
Projected Fund Balance in Original Budget: $4,420,674
Higher beginning Fund Balance $1,477,877
Net increase in Revenue 207,150
Net increase in Expenditures (469,719)
Total Increase to General Fund Balance 1,215,308
Projected Fund Balance at 6/30/15 $5,635,982
The recommended budget adjustments are anticipated to have a minimal impact on staff
workload.
BACKGROUND:
Each year, the City Council adopts a budget, which commits resources to the
accomplishment of its policies. The Administrative Services Department prepares budget
updates for the City Council.
Item 12.b. - Page 1
CONSIDERATION OF MID YEAR BUDGET REPORT
FEBRUARY 23, 2016
PAGE 2
The purpose of the City's Mid Year Budget Report is to:
Compare revenues received and expenditures made to budgeted amounts to determine
appropriate adjustments.
Provide a link between the City budget, the financial records, and the independent
financial audit.
Compare current revenues and expenditures against the prior fiscal year.
ANALYSIS OF ISSUES:
As detailed in the attached Mid-Year Budget Report, the City is currently facing a mixed
fiscal picture. Revenues in many General Fund categories are increasing and economic
indicators are generally favorable. However, there are significant revenue challenges in the
Water and Sewer enterprise funds, which are projected to be about $640,000 short of
budgeted revenues in the current year as well as the Gas Tax Fund, which is projected to
generate $265,000 less than anticipated during the two year budget period.
The current projected available General Fund Balance for June 30, 2016 is $5.6 million, an
increase of $1.2 million from the projected fund balance of $4.4 million published in the
original budget. This projected fund balance is 35.5% of appropriations, which exceeds the
City Council fund balance goal of 20%. The increase in the projected fund balance is largely
due to one-time savings in the prior year and higher than expected revenues in the current
year. The projected Fund Balance assumes revenues are received exactly as budgeted, all
budget expenditures are made, and all capital transfers required by the Capital Improvement
Project Program are completed. Historically, the General Fund has not been required to fund
all budgeted capital transfers and expenditures at year-end are traditionally less than
budgeted.
The updated 10 year fiscal forecast predicts that expenditures will exceed revenues and will
draw down the available fund balance each year for the foreseeable future. Without
corrective action, fund balance would be fully depleted at the end of the tenth year. It’s
important to note that the forecast is not a budget and does not make any specific
expenditure or revenue decisions; it simply provides information and context for future
decisions.
As described more fully in the Mid-Year Budget Report, staff is recommending several
classification changes in the Community Development Department. Although there is no net
financial impact of these changes in the current budget, Council adoption of the new job
description for Planning Technician is required.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve the recommended actions
2. Do not approve the recommended actions;
3. Provide direction to staff.
Item 12.b. - Page 2
CONSIDERATION OF MID YEAR BUDGET REPORT
FEBRUARY 23, 2016
PAGE 3
ADVANTAGES:
The Mid Year Budget Report provides an updated review of the City finances in the current
fiscal year, allocates additional funding to meet unanticipated needs and complete projects,
and maintains a fund balance that exceeds the City’s minimum reserve policy amount.
DISADVANTAGES:
Based on the recommendations, departmental budgets maintain current service levels, no
significant new projects or programs are recommended.
ENVIROMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, February 18, 2016. The Agenda
and report were posted on the City’s website on Friday, February 19, 2016. No public
comments were received.
Attachment(s):
1. Mid Year Budget Report
Item 12.b. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ESTABLISHING OR AMENDING
THE JOB DESCRIPTION AND SALARY RANGE FOR THE
POSITIONS OF PLANNING TECHNICIAN, BUILDING
PERMIT TECHNICIAN AND PLANNING MANAGER
WHEREAS, an evaluation of the needs of the organization resulted in a
recommendation to create a new Planning Technician job classification; and
WHEREAS, an evaluation of the job descriptions for the existing Building Permit
Technician and Planning Manager positions resulted in modifications of essential
functions; and
WHEREAS, the City Council of the City of Arroyo Grande (“City”) deems it in the best
interest of the City to establish a Planning Technician position with a job description
incorporated hereto as Exhibit “A”; and
WHEREAS, the City Council of the City of Arroyo Grande (“City”) deems it in the best
interest of the City to amend the Building Permit Technician position with a job
description incorporated hereto as Exhibit “B”; and
WHEREAS, the City Council of the City of Arroyo Grande (“City”) deems it in the best
interest of the City to amend the Planning Manager position with a job description
incorporated hereto as Exhibit “C”; and
WHEREAS, the City Council of the City of Arroyo Grande (“City”) deems it in the best
interest of the City to amend the Part Time Employees Salary Schedule incorporated
hereto as Exhibit “D”;
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo
Grande does hereby establish the position of Planning Technician with a job description
attached hereto as Exhibit “A.” The City Council also hereby amends the positions of
Building Permit Technician and Planning Manager, to perform the duties and
responsibilities set forth in the job descriptions so attached as Exhibit “B” and Exhibit
“C”. The positions shall receive the rates of pay as follows:
POSITION: Planning Technician
$22.00 - $25.47/hour
POSITION: Building Permit Technician
$22.00 - $25.47/hour
Planning Manager
Range Management 42
$5,791 - $7,043/month
Item 12.b. - Page 4
RESOLUTION NO.
PAGE 2
BE IT FURTHER RESOLVED that this Resolution shall become effective as of
February 26, 2016.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 23rd day of February, 2016.
Item 12.b. - Page 5
RESOLUTION NO.
PAGE 3
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 12.b. - Page 6
EXHIBIT “A”
CITY OF ARROYO GRANDE
PLANNING TECHNICIAN
Class specifications are intended to present a descriptive list of the range of duties performed by
employees in the class. Specifications are not intended to reflect all duties performed within the job.
DEFINITION
To perform a variety of technical planning duties including the review and processing of minor applications;
to provide information and assistance to the public, City departments and other agencies regarding
planning related issues, code interpretations, and planning applications; and to perform a variety of
technical tasks relative to assigned area of responsibility. Review of technical plans including site plans,
architectural elevations, grading plans and landscape plans for compliance with codes and conditions of
approval; prepare various illustrations for planning activities; maintain planning records; perform technical
research; and assist with planning studies.
SUPERVISION RECEIVED AND EXCERCISED
Receives general supervision from the Planning Manager.
ESSENTIAL AND MARGINAL FUNCTION STATEMENTS
The following tasks are typical for positions in this classification. Any single position may not
perform all of these tasks and/or may perform similar related tasks not listed here:
Essential Functions:
1. Perform a variety of routine planning duties in support of the Community Development Department;
review and process planning applications.
2. Review technical plans including site plans, architectural elevations, grading plans, and landscape
plans for compliance with codes and conditions of approval.
3. Provide information and assistance to the public, City departments, and other agencies regarding
planning related issues, code interpretations, and planning applications.
4. Conduct investigations to determine the compliance of projects with local zoning, State and Federal
regulations; conduct field inspections to determine compliance with laws and practices; take
appropriate actions and facilitate solutions to applicants.
5. Perform technical research and planning studies; collect, compile, analyze, and interpret relevant
data.
6. Generate and analyze data for planning studies and assist in the preparation of a variety of
planning documents and reports.
7. Establish and maintain necessary files pertaining to planning records, reports and maps; prepare
reports and present findings.
8. Take minutes at boards, commissions, and committee meetings.
9. Prepare the more routine staff reports and correspondence.
Item 12.b. - Page 7
CITY OF ARROYO GRANDE
Planning Technician (Continued)
Page 2
10. Perform administrative tasks including staffing of the public counter, building plan check review,
business license review, ordinance enforcement, sign permit review, addressing issuing of permits
and collecting fees.
11. Assists in field inspections of approved projects to assure the projects are being completed in
accordance with approved conditions.
12. Respond and perform assigned duties in the event of a City declared emergency.
13. Attend training classes and meetings as required.
Marginal Functions:
1. Perform related duties and responsibilities as required.
QUALIFICATIONS
Knowledge of:
Basic principles and functions of urban planning and development.
Methods and techniques of conducting statistical analysis
Modern office procedures, methods, and equipment including computers and supporting software
applications.
Principles and practices of record keeping maps and report preparation.
Pertinent Federal, State, and local laws, codes, and regulations.
Ability to:
Learn and perform planning related duties at an entry level.
Collect, analyze, and compile data pertaining to planning and zoning functions.
Process a variety of minor permits and applications.
Read and analyze technical, architectural and engineering plans.
Maintain accurate records and prepare clear and concise reports.
Interpret and apply Federal, State, and local policies, laws, and regulations.
Respond to requests and inquiries from the general public.
Communicate clearly and concisely, both orally and in writing.
Deal tactfully, patiently, and courteously with the public.
Establish and maintain effective working relationships with those contacted in the course of work.
Support and follow department policies, goals, and guiding principles.
Follow written and verbal direction.
EXPERIENCE AND TRAINING GUIDELINES
Any combination of experience and training that would likely provide the required knowledge and abilities is
qualifying. A typical way to obtain the knowledge and abilities would be:
Education:
Item 12.b. - Page 8
CITY OF ARROYO GRANDE
Planning Technician (Continued)
Page 3
At least two years of course work in city planning, architecture, landscape architecture or a related
field.
Experience:
Work experience in a planning environment or customer service field is desirable.
Licenses or Certificates:
Possession of a valid California driver’s license will be required at the time of appointment a nd must be
maintained throughout employment.
WORKING CONDITIONS
Environmental Conditions:
Office and field environment; travel from site to site; exposure to computer screens, noise, dust and
inclement weather conditions.
Physical Conditions:
Essential functions and other important duties and responsibilities may require maintaining physical
condition necessary for walking, standing or sitting for prolonged periods of time; light lifting and
carrying; pulling, pushing, reaching; and operating motorized vehicles.
Item 12.b. - Page 9
Exhibit “B”
CITY OF ARROYO GRANDE
BUILDING PERMIT TECHNICIAN
Class specifications are intended to present a descriptive list of the range of duties performed by
employees in the class. Specifications are not intended to reflect all duties performed within the job.
DEFINITION
To perform a variety of highly responsible analytical, technical and administrative duties within the
Building Division of the Community Development Department; accept, process and review building permit
applications to determine completeness of necessary documents and general compliance with building
codes and other local, State and Federal requirements.
DISTINGUISHING CHARACTERISTICS
This class is distinguished by requiring the use of advanced administrative and basic technical skills
relative to building; regularly interacting with and providing building requirement information and fee
estimates to the public, architects, developers, contractors and engineers. Work is characterized by
extensive use of permit tracking software system in order to calculate building fees, track and issue
permits, and archive plans.
SUPERVISION RECEIVED AND EXCERCISED
Receives general direction from the Building Official.
ESSENTIAL AND MARGINAL FUNCTION STATEMENTS
The following tasks are typical for positions in this classification. Any single position may not perform all
of these tasks and/or may perform similar related tasks not listed here:
Essential Functions:
1. Staff the public counter for the Building Division, assist developers, contractors and the general
public; answer questions and provide information; respond to telephone inquiries; accept building
permit applications for processing; review plans, engineering and permit documents to verify
accuracy and completeness of information; approve permits of a minor nature.
2. Interpret and explain to the public the Division’s policies and procedures, as well as City building -
related regulations, construction codes and the City development code.
3. Check plans of a minor nature for compliance with applicable State and City policies and
standards, including but not limited to the building, plumbing, mechanical and electrical codes,
City ordinances, State energy requirements and handicapped accessibility standards.
4. Calculates building and other related fees based on established fee schedules; first level review
of incoming construction documents; use architectural and engineering scales to calculate
building dimensions and areas; determine setbacks and fire sprinkler and alarm requirements.
5. Schedules and records daily field inspections.
6. Monitor approval of plans by all City departments and other regulatory agencies; coordinate
payment of fees and issue permits.
7. Provide field inspections for purposes of business license approvals.
8. Compiles and reports building statistics and construction activity for City, County and State
agencies as well as the construction industry.
Item 12.b. - Page 10
CITY OF ARROYO GRANDE
Building Permit Technician (Continued)
Page 2
9. Coordinate final inspections, utility clearances and certificate of occupancy releases.
10. Maintains building permit computer program, inputs data, and updates building codes and fee
schedules.
11. Provide administrative support for other Community Development and Administrative Services
Department staff.
12. Respond and perform assigned duties in the event of a City declared emergency.
13. Attend training classes and meetings as required.
14. Respond to public inquiries in a courteous manner; provide information within the area of
assignment; resolve complaints in an efficient and timely manner.
Marginal Functions:
1. Perform related duties and responsibilities as required.
QUALIFICATIONS
Knowledge of:
Building Division policies and procedures.
Model building codes and construction classification types.
General construction practices, methods and terminology.
Mathematical skills to calculate fees, area and linear dimensions.
Modern office procedures, methods and equipment including computers and supporting
applications.
Principles and procedures of record keeping.
Pertinent Federal, State and local laws, codes and regulations.
Ability to:
Read and understand construction documents.
Use architectural and engineering scales.
Perform field inspections.
Research, collect and analyze data.
Prepare clear and concise reports.
Operate equipment including computers, copiers, calculators and supporting applications.
Establish and maintain effective working relationships with those contacted in the course of work.
Communicate clearly and concisely, both orally and in writing.
Follow written and verbal direction.
Respond to requests and inquiries from the general public.
Work independently in the absence of supervision.
Maintain effective audio-visual discrimination and perception needed for making observations,
communicating with others, reading, writing and operation of assigned equipment.
Maintain physical condition appropriate to the performance of assigned duties and
responsibilities.
EXPERIENCE AND TRAINING GUIDELINES
Any combination of experience and training that would likely provide the required knowledge and abilities
is qualifying. A typical way to obtain the knowledge and abilities would be:
Item 12.b. - Page 11
CITY OF ARROYO GRANDE
Building Permit Technician (Continued)
Page 3
Experience:
Three years administrative and/or technical support experience, at least one year of which includes
specialized building/construction support responsibilities, processing building plans and applications for
building permits. Two years of increasingly responsible experience in a public agency or customer
service environment.
Training:
Equivalent to the completion of the twelfth grade supplemented by college level course work and/or
specialized training in building industry practices or a related field.
License or Certificate:
Possession of a valid California driver’s license will be required at the time of appointment and must be
maintained throughout employment.
I.C.C. Permit Technician certification strongly desired and is required within one year of employment. The
certification must be maintained throughout employment.
WORKING CONDITIONS
Environmental Conditions:
Office and field environment; travel from site to site; exposure to computer screens; extensive contact
with the general public in a customer service environment.
Physical Conditions:
Essential and marginal functions may require maintaining physical condition necessary for walking,
standing, or sitting for prolonged periods of time; moderate or light lifting and carrying; operating
motorized equipment and vehicles; extensive use of computer keyboard; near visual acuity.
Item 12.b. - Page 12
Exhibit “C”
CITY OF ARROYO GRANDE
PLANNING MANAGER
Class specifications are intended to present a descriptive list of the range of duties performed by
employees in the class. Specifications are not intended to reflect all duties performed within the
job.
DEFINITION:
To perform a variety of supervisory and professional planning duties in support of the Community
Development department; to supervise and manage complex planning applications and current planning
work program; to ensure development project compliance with all applicable planning rules and
regulations; to serve as departmental and community liaison and provide effective customer service to the
community and project applicants; and to perform a variety of professional tasks relative to assigned area
of responsibility.
SUPERVISION RECEIVED AND EXERCISED:
Receives general direction from the Director of Community Development.
Direct supervision is provided to professional, technical and support staff.
ESSENTIAL AND MARGINAL FUNCTION STATEMENTS--Essential and other important responsibilities
and duties may include, but are not limited to, the following:
Essential Functions:
1. Perform professional planning duties in support of the Community Development Department;
manage current planning work program.
2. Perform economic development duties in support of the Community Development Department.
3. Perform and manage complex and sensitive professional planning projects, research and analysis,
and environmental studies.
4. Advise the Director of Community Development on all planning-related matters.
5. Plan and organize workloads and staff assignments and ensure appropriate training is provided.
6. Evaluate operations and activities of assigned responsibilities.
7. Prepare reports on operations and activities, recommending improvements and modifications.
8. Attend evening and weekend meetings and serve as staff liaison on a variety of boards,
commissions and committees. Prepare and present staff reports and other necessary
correspondence.
9. Serve as acting Director of Community Development in his/her absence.
10. Supervise/manage various consultants in the performance of environmental studies and project
reviews.
11. Respond and perform assigned duties in the event of a City declared emergency.
Item 12.b. - Page 13
CITY OF ARROYO GRANDE
Planning Manager (Continued)
Page 2
12. Attend training classes and meetings as required.
Marginal Functions:
1. May serve as City liaison on regional planning issues, including urban and transportation planning
development projects.
2. Perform related duties and responsibilities as required.
QUALIFICATIONS
Knowledge of:
Operational characteristics, services and activities of a comprehensive urban planning program.
Principles and practices of urban planning and development.
Principles, methods and techniques of evaluating and assessing planning, zoning and land use
issues.
Rules and regulations governing land use, zoning and related issues.
Methods and techniques of conducting statistical analysis.
Modern office procedures, methods and equipment including computers and supporting software
applications.
Pertinent Federal, State and local laws, codes and regulations.
Ability to:
Perform professional planning duties.
Process and manage complex planning applications.
Manage multiple planning projects effectively on an on-going basis and meet firm deadlines.
Assist in developing and enforcing land use planning rules and regulations.
Research data and prepare reports.
Read and analyze technical, architectural and engineering plans.
Prepare clear and concise reports.
Analyze problems, identify alternative solutions and project consequences of proposed actions.
Present ideas and concepts persuasively before groups or in written publication.
Evaluate and prioritize tasks under deadlines.
Supervise/manage consultants and contract administration.
Interpret and apply Federal, State and local policies, laws and regulations.
Communicate clearly and concisely, both orally and in writing.
Establish and maintain effective working relationships with those contacted in the course of work.
Be innovative, detail-orientated, and experienced in highly visible/controversial projects.
Promote strong interpersonal skills to develop good working relationships at various levels and to
resolve complaints.
Provide effective supervision and staff management.
Maintain physical condition appropriate to the performance of assigned duties and
responsibilities.
Maintain effective audio/visual discrimination and perception to the degree necessary for the
successful performance of assigned duties.
Item 12.b. - Page 14
CITY OF ARROYO GRANDE
Planning Manager (Continued)
Page 3
EXPERIENCE AND TRAINING GUIDELINES
Any combination of experience and training that would likely provide the required knowledge and abilities
is qualifying. A typical way to obtain the knowledge and abilities would be:
Experience:
Five years of increasing responsible urban planning experience.
Education:
Equivalent to a Bachelors degree from an accredited college or university with major course work in
urban planning or a related field.
License or Certificate:
Possession of a valid California driver’s license will be required at the time of appointment and must be
maintained throughout employment.
WORKING CONDITIONS
Environmental Conditions:
Office and field environment; some travel from site to site; exposure to computer screens; extensive
contact with the general public.
Physical Conditions:
Essential and marginal functions may require maintaining physical condition necessary for walking,
standing or sitting for prolonged periods of time; light lifting and carrying; extensive use of the keyboard;
near visual acuity to prepare and review correspondence and a variety of other documents.
Item 12.b. - Page 15
Exhibit D
Effective February 26, 2016
POLICE DEPARTMENT Step AStep BStep CStep D
Designated Level I Reserve Officer$24.35$25.57$26.85$28.19
Senior Police Reserve Officer $21.67$22.76$23.89$25.09
Fleet & Equipment Technician $21.67$22.76$23.89$25.09
Training Technician $21.67$22.76$23.89$25.09
Neighborhood Services Technician$19.34$20.31$21.32$22.39
Police Reserve Officer $19.34$20.31$21.32$22.39
Records Clerk $17.95$18.85$19.79$20.78
Police Reserve Officer Trainee $16.26$17.07$17.92$18.82
RECREATION SERVICES DEPARTMENT
Volunteer and Program Coordinator$20.45$21.47$22.55$23.67
Pre School Teacher $13.40$14.07$14.78$15.52
AM/PM Teacher $13.31$13.98$14.67$15.41
AM/PM Assistant Teacher $12.10$12.71$13.34$14.01
AM/PM Assistant II $11.00$11.55$12.13$12.73
AM/PM Assistant I $10.00$10.50$11.03$11.58
Senior Facility Attendant $11.00$11.55$12.13$12.73
Facility Attendant $10.00$10.50$11.03$11.58
Sports Facility Maintenance $10.00$10.50$11.03$11.58
MISCELLANEOUS
Administrative Intern $11.98$12.58$13.21$13.87
Administrative Secretary $20.50$21.53$22.60$23.73
Associate Engineer $29.55$31.02$32.57$34.20
Assistant Engineer $26.86$28.20$29.61$31.09
Associate Planner $27.70$29.08$30.53$32.06
Assistant Planner $25.60$26.88$28.23$29.64
Building Permit Technician $22.00$23.10$24.26$25.47
Planning Technician $22.00$23.10$24.26$25.47
Custodian $14.87$15.61$16.39$17.21
Maintenance Worker $14.87$15.61$16.39$17.21
Sr. Office Assistant $17.95$18.85$19.79$20.78
Office Assistant II $17.04$17.89$18.79$19.73
Office Assistant I $14.58$15.31$16.08$16.88
Student Intern (seasonal)$10.00
PART-TIME EMPLOYEES SALARIES
HOURLY RATE
Item 12.b. - Page 16
City of
Arroyo Grande
Administrative Services Department
MID-YEAR BUDGET REPORT
FISCAL YEAR 2015-2016
ATTACHMENT 1
Item 12.b. - Page 17
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
2
Table of Contents
Overview ........................................................................................................................................................................3
Summary of Key Points................................................................................................................................................3
Significant Revenue Changes ......................................................................................................................................4
Budget Changes Approved To-Date ..........................................................................................................................7
Mid Year Budget Changes ...........................................................................................................................................7
General Fund Expenditures: ...................................................................................................................................8
General Fund Revenues:..........................................................................................................................................9
Other Funds: ..............................................................................................................................................................10
General Fund Overview ...............................................................................................................................................10
General Fund Revenues ...............................................................................................................................................11
General Fund Expenditures ........................................................................................................................................13
Long Term General Fund Forecast .............................................................................................................................14
Other Funds ...................................................................................................................................................................15
Attachments ...................................................................................................................................................................15
Item 12.b. - Page 18
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
3
Overview
The City’s Mid-Year Report is prepared to compare the revenues and expenditures occurring during the first six months
of the fiscal year against budgeted amounts to determine appropriate adjustments; to provide links between the City
budget, the financial records, and the independent financial audit and; to compare revenues earned and expenses made
during the first six months of the Fiscal Year (FY) 2015-16 against the FY 2014-15 figures. This information is provided in
the following format:
Schedule A: The starting point is the audited FY 2014-15 ending fund balances, which is also the beginning Available
Fund Balance for the FY 2015-16. Combining the beginning Available Fund Balances with the estimated revenues,
transfers, and appropriations adopted in the Biennial Budget and this report, provides the estimated ending fund
balances.
As a result of a comprehensive review, adjustments are recommended where actual receipts and disbursements are
materially different from the budgeted amounts. Although budget adjustments are recommended across several City
funds, typically the emphasis of the Mid-Year Budget Report is directed at the General Fund. The General Fund is
deemed to be the most critical as it provides most services commonly associated with government (i.e., public safety,
recreation, parks, building, public works, planning, etc.) and is limited primarily by tax-generated revenues. However, in
this fiscal year, significant financial vulnerabilities exist in other funds and will be discussed in this report.
Summary of Key Points
The City is currently facing a mixed fiscal picture. Revenues in many General Fund categories are increasing and
economic indicators are generally favorable. However, there are significant revenue challenges in the Water and
Sewer enterprise funds, which are projected to be about $640,000 short of budgeted revenues in the current year as
well as the Gas Tax Fund, which is projected to generate $265,000 less than anticipated during the two year budget
period.
The audited Fund Balances reported in the Comprehensive Annual Financial Report (CAFR) have been incorporated
into the beginning fund balances on Schedule A. There are a couple of adjustments to the beginning fund balances
that are different from the CAFR. There is an adjustment to subtract the fixed asset balances from the Water Fund and
Sewer Fund in order to reflect a more accurate expendable fund balance.
Item 12.b. - Page 19
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
4
The City’s governmental funds reported a combined fund balance of $15.8 million at June 30, 2015, an increase of $1.3
million in comparison with June 30, 2014. The beginning General Fund balance was $5.9 million, which was an
increase of $1.0 million from the prior year and represents 38% of General Fund expenditures.
The City Council has established an Undesignated General Fund Balance goal of 20 % of annual appropriation with a
minimum goal of 15%. The City’s Undesignated General Fund Balance represents the available resources to provide
funding for future contingencies such as earthquakes, civil unrest, economic fluctuations, major infrastructure repairs
and investment in capital for improved productivity and efficiencies. Inadequate reserves increase financial risk,
negatively impact cash flow, and reduce the City’s ability to attract and sustain economic development and growth.
The current projected available General Fund Balance for June 30, 2016 is $5.6 million, an increase of $1.2 million from the
projected fund balance of $4.4 million published in the original budget. This projected fund balance is 35.5% of
appropriations, which exceeds the City Council fund balance goal of 20%. The increase in the projected fund balance is
largely due to one-time savings in the prior year and higher than expected revenues in the current year. The projected
Fund Balance assumes revenues are received exactly as budgeted, all budget expenditures are made, and all capital
transfers required by the CIP Program are completed. Historically, the General Fund has not been required to fund all
budgeted capital transfers and expenditures at year-end are traditionally less than budgeted.
The updated 10 year fiscal forecast predicts that expenditures will exceed revenues and will draw down the available
fund balance each year for the foreseeable future. Without corrective action, fund balance would be fully depleted at the
end of the tenth year. It’s important to note that the forecast is not a budget and does not make any specific expenditure
or revenue decisions; it simply provides information and context for future decisions.
Significant Revenue Changes
Water and Sewer Funds
With the declaration of a Stage 1 Water Emergency, the community was required to reduce water usage by up to 30%
from 2014 usage levels in order to meet the State mandated 28% reduction. The good news is that the community has met
this challenge; the bad news is that reduced water consumption has a direct impact on the revenue generated in the Water
and Sewer funds. As reflected on the following graph, water billing revenues have decreased from FY 2013-14, with FY
2015-16 revenues at significantly lower levels. Sewer revenues also follow this same general pattern. Based on current
consumption levels, it is anticipated that the Water Fund will collect about $525,000 less revenue in FY 2015-16 than
Item 12.b. - Page 20
City of Arroyo Grande
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originally budgeted. The Sewer Fund will collect about $115,000 less in the current year. Since the Water and Sewer
funds are enterprise funds, they are fully supported by the fees generated by providing services to the community, and
are not funded through general tax revenues.
One mechanism that the community used to reduce water use was the replacement of turf with water efficient
landscaping options. As evidenced by the participation in the City’s “Cash for Grass” program, where residents received
rebates for replacing turf with water-wise landscaping, much of the water savings represents permanent changes in
consumption behavior. Although there will undoubtedly be some rebounding of water use when the drought is over,
there has been a shift to long-term conservation within the community and revenues are likely to remain substantially
below prior levels unless rate adjustments are adopted.
Staff continues to monitor revenue needs and is performing additional analysis on the Water Fund and Sewer Fund
financial conditions. While rate increases are never popular, given the amount of fixed costs in these funds, they may be
necessary to sustain ongoing operations and long-term maintenance and capital replacement needs. Additional rate
increases are not proposed at this time; however, it is likely that adjustments will be recommended in the near future.
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
750,000
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June
Water Billing Revenues
2013-14
2014-15
2015-16
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City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
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Gas Tax Revenues
The City receives Highway Users Tax, also known as motor vehicle fuel tax or gas tax, from the State based on a complex
allocation formula. Added to the complexity, is the “swap” of Proposition 42 state sales tax on gasoline with an allocation
from a new higher motor vehicle excise tax rate. The swap created revenue effects, particularly since the new excise tax
rate is adjusted annually by the State Board of Equalization by “looking backward” at the revenues generated. If the
excise tax generates less revenue than Proposition 42 would have, the difference will not be made up until the following
year.
Current trends in automobile fuels indicate both a decrease in demand and a downward trend in prices. This is already
predicted to result in a shortfall of Gas Tax revenues in the current year of approximately $75,000. In preparing the State’s
2016-17 proposed budget, the State Department of Finance has estimated gasoline sales volume and prices for current and
future years and has projected that the excise tax rate will drop from the current rate of $0.120 per gallon to $0.098 per
gallon. This is predicted to bring a reduction in revenue in FY 2016-17 of approximately $190,000 for the City of Arroyo
Grande.
According to information provided by the City’s advisor, Michael Coleman, the Governor’s proposed budget also calls for
new transportation revenues, which would, when fully phased in, provide an estimated $3.6 billion annual increase for state
and local transportation programs. As proposed, about half of these revenues would be allocated to the state and half to local
agencies. Specifically, the Governor proposes to allocate about $1.5 billion to rehabilitate state highways, about $1.4 billion
for local streets and roads, $400 million for transit, $200 million to improve trade corridors and $120 million for state highway
maintenance.
If adopted, this proposal would have the effect in FY 2016-17 of increasing Gas Tax funding to the City by about $90,000, or
roughly half of the anticipated shortfall. It is important to note that this is just a proposed budget from the Governor and it
has not been adopted. Staff will continue to monitor the situation and anticipates additional information will be forthcoming
in the May Revise that will provide added clarity, after which, the City will be able to make a more informed decision about
funding.
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Currently, the City uses all Gas Tax revenue in addition to some transportation (TDA) revenue and Local Sales Tax revenue
to provide for the maintenance of streets, bridges, drainage and sidewalks. It is recommended that the Local Sales Tax
allocation for streets be augmented by $76,978 for FY 2015-16, but not make any changes to the funding for FY 2016-17 until
after the Governor’s May Revise. The actual amount transferred from the Local Sales Tax Fund will depend on final
expenditures in the Streets Fund and City staff will continue to provide fiscally prudent services; however significant savings
in the Streets Fund would only be achieved through service level reductions to programs such as street sweeping and
drainage maintenance, which are not recommended at this time.
Budget Changes Approved To-Date
Various budget changes have been approved by the Council or City Manager, as appropriate, since the adoption of the
original Budget in June 2015. The following list summarizes these changes, which are included in the Adjustments to
Appropriations column of Schedule A.
General Fund Local Sales Tax Fund
Reallocation for power supply project @ PD 8,710$ Reallocation for power supply project @ PD7,150$
Engineering inspection services (revenue offset)5,000 Platino/Oro drainage improvements 24,000
Minimum wage/other staffing changes 12,800 Kingo Park playground replacement 25,000
Total General Fund 26,510$ Oak Park Paving 205,000
City Hall security/access project 25,000
Water Neutralization Fund PD remodel project settlement 109,700
Water conservation programs 109,000$ Total Local Sales Tax Fund 395,850$
Sewer Fund
Lift Station 1 main repair 75,000$
Approved budget changes to-date
Mid Year Budget Changes
As part of the mid-year process, departments were asked to review their current budgets and determine if any adjustments
should be proposed in this report. Departments have been asked to closely monitor their budgets and spend only what is
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necessary. At this time, only minor adjustments are recommended to the General Fund departmental budgets that are
necessary due to timing considerations, increases that are supported by additional revenues, and one-time project funding.
General Fund Expenditures:
Additional expenditures for FY 2015-16 totaling $81,650 in the General Fund are recommended as described below.
Police– The City has received grant revenue from the State’s realignment program of $35,300, which will fully offset
the cost of acquiring new tasers for the department. In addition, the department incurred $750 in expenditures for the
canine program, which were fully offset by insurance reimbursements. There is no net impact to the General Fund for
these items. However, a $600 augmentation to the budget for the power supply project previously approved by the
Council is required in order to cover sales tax expense that was inadvertently omitted from the vendor’s invoice.
City Attorney Services –An increase of $40,000 is required to reflect additional legal services expected in the current
fiscal year.
Community Development – A recent vacancy in the Planning division created the opportunity to review the needs
and positions assigned to the Community Development Department. Several changes are recommended, which are
cost neutral to the two year budget and will result in a structure similar to the pre-recession reorganization. First,
based on the workload and staffing levels in the Building and Life Safety division, it is recommended that one part-
time Office Assistant II position be reclassified to a Building Permit Technician position. This was a full-time position
prior to the recession. Based on the duties assigned, the Building Permit Technician classification is more appropriate;
however, retaining the part-time status of the position is recommended at this time.
Second, following an analysis in the Planning division of the types and complexity of projects, workload balancing
and organizational structure, it is recommended that a part-time position of Planning Technician be created and the
full-time Planning Manager position be funded. This will allow for an entry level position to handle much of the
intake and initial project assessment workload as well as provide for a senior level position to handle the most
complex projects and directly supervise the division staff. This will be funded through the elimination of one full-time
Associate Planner and one part-time Associate Planner position. In addition to providing a staffing structure that will
provide for a logical progression of classifications to address the wide array of duties, it will provide for a senior level
manager that can alleviate some duties of the Director, thus allowing more time for the Director to focus on economic
development activities. Economic development is critically important to the long term financial sustainability of the
City, however there is no dedicated staff assigned to this task.
Item 12.b. - Page 24
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Tourism Business Improvement District – The original budget did not reflect the $5,000 transfer that has previously
been approved by the Council for the Arroyo Grande Tourism Business Improvement District. This funding provides
additional tourism and City-specific marketing.
Additional expenditures for FY 2016-17 in the General Fund are recommended as described below.
Information Technology – The increase in mobile device use, hosted applications, advancements in technology, and
internet access at various public and workplace meetings requires reliable and sufficient internet connectivity. It will
cost an additional $9,600 beginning in FY 2016-17 to provide a dedicated internet connection that will create
redundancy in the event of a circuit outage and increase the speed, quality, and performance of the City’s internet
connection.
General Fund Revenues:
Additional budgeted revenues are proposed totaling $207,150 for FY 2015-16 in the General Fund. Significant variances
are described below.
Transient Occupancy Tax – With the addition of the Tourism Business Improvement District activity, and a general
recovery in the tourism industry, revenues are projected to be higher than originally estimated. An increase of $28,300
in this revenue source for FY 2015-16 and $19,900 for FY 2016-17 is recommended.
Sales and Use Tax – Per discussions with the City’s sales tax consultant, sales tax revenues are expected to be slightly
lower than originally projected. Budget estimates have been reduced by $81,300 in FY 2015-16 and $101,600 in FY
2016-17.
Interest Earnings – This revenue source is projected to increase by $20,000 from previous estimates for FY 2015-16
and $20,000 in FY 2016-17 due to higher yields on higher investable balances.
Mandated Cost Recovery – In the current fiscal year, the State repaid mandated cost recovery claims from several
prior years. This is anticipated to be a one-time increase of $29,000 in FY 2015-16.
Engineering Charges for Services – Due to increased development activity, revenues from engineering map/plan
checks, inspections and other activities is anticipated to generate $43,200 more in FY 2015-16 than previously
budgeted.
Transfers From Other Funds – An additional $81,700 is anticipated from other Funds due to changes in personnel
and operating cost allocations.
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City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
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Other Revenues – Based on an analysis of the performance of all revenues at this point of the fiscal year, various
other adjustments totaling an additional $86,250 in FY 2015-16 are anticipated.
Other Funds:
Local Sales Tax Fund: Due to the reduction in Gas Tax funding from the State, additional appropriations of $76,978
for street, bridge, drainage and sidewalk maintenance will be required in FY 2015-16. As previously discussed, it is
recommended to reassess the FY 2016-17 funding situation after the Governor’s May Revise is issued.
Transportation Impact Fee Fund: Additional traffic analysis and consultant services are required for the development
impact fee study that were not anticipated when the project was launched. These one-time services are anticipated to cost
$20,000 in FY 2015-16. In addition, minor budget reallocations for the development impact fee study are reflected in
several funds on Schedule A.
Downtown Parking Fund: Additional improvements were required in the Car Corral parking lot in order to
appropriately address drainage issues. Due to anticipated rains, the project was completed using the pavement
management budget, therefore this request is to reimburse that program $24,000 in FY 2015-16 for the necessary work
performed.
Water Fund: The litigation associated with the Santa Maria Valley water basin is estimated to require an additional
$50,000 in legal fees.
In general, revenues and expenditures in all other funds are on target with projections and prior year trends. No other
adjustments are required at this time.
General Fund Overview
Revenues are currently 38% collected and expenditures are 50% spent. This reflects the fact that not all revenues and
expenditures occur evenly throughout the fiscal year. Significant variances are discussed later in the report, but in
general, this trend is consistent with prior years.
Item 12.b. - Page 26
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
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After Mid-Year adjustments are recorded, the June 30, 2016 fund balance in the General Fund will be approximately $5.6
million, if all budget projections are fulfilled. However, at June 30, 2016, the City may find that revenues have not met the
budgeted projections and not all budgeted appropriations will be spent as year-end actual expenditures are traditionally
less than budgeted amounts.
Shown below is an overview of the revenues, expenses, and transfers for Fiscal Years 20 15-16 and 2014-15 as of the mid-
point of the fiscal year. As reflected, both revenues and expenditures are higher in the current fiscal year than they were
at the same point in time last year.
General Fund FY 2015-16FY 2014-15Variance
Revenues:
Mid-Year Actual $5,161,630$5,218,946 ($57,316)
Mid-Year Transfers 1,444,9661,173,461$271,505
Total 6,606,5966,392,407$214,189
Expenditures:
Mid-Year Actual 7,975,8907,329,189646,701
Total 7,975,8907,329,189646,701
Impact on Fund Balance(1,369,294)$ (936,782)$ (432,512)$
General Fund Revenues
Total General Fund revenues are at 38% with half of the year complete. This is below 50% because it only represents four
months of Sales Tax revenue, five months of Transient Occupancy Tax (TOT) revenue and four months of Franchise Fee
revenue. In addition, the first half of the triple flip amounts for sales tax and VLF are not received until January. The table
below presents a comparison of the top ten revenue accounts. Because the top revenue sources account for approximately
75% of total General Fund revenues, changes here can have profound impacts. The mid-year budget includes additional
revenues of $207,150 for FY 2015-16 discussed previously.
Item 12.b. - Page 27
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
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Actual
Title Budget Actual %BudgetActual%Change
Property Tax 4,238,900$ 2,483,517$ 59%4,055,600$ 2,373,310$ 59%110,207
Sales & Use Tax 3,235,500 928,906 29%2,605,000 926,072 36%2,834
Triple Flip - VLF 1,419,400 - 0%1,360,900 - 0%-
Triple Flip - Sales Tax 257,200 - 0%793,700 - 0%-
Transient Occupancy Tax959,100 431,266 45%857,400 376,181 44%55,085
Franchise Fees 581,000 143,139 25%570,000 142,982 25%157
Children in Motion 350,000 182,058 52%330,000 207,204 63%(25,146)
Telecommunication Site
Leases 230,000 111,061 48%210,000 113,271 54%(2,210)
Building Permits 165,000 64,117 39%190,200 117,937 62%(53,820)
Planning Fees 239,200 100,810 42%174,900 108,038 62%(7,228)
Total 11,675,300$ 4,444,874$ 38%11,147,700$ 4,364,995$ 39%79,879$
Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year
Sales Tax – Sales tax is lower than projected and lower than the same period last fiscal year. Staff will continue to
monitor this closely.
Property Tax – Property tax trends are consistent with the same period last year and budgeted revenues are expected
to be met.
Children in Motion – This revenue is showing a decrease from the same period in the prior year, however, budgeted
revenues are expected to be achieved by year end.
Transient Occupancy Tax – This revenue is showing an increase of approximately $55,000 when compared to the
prior year. Revenue estimates in the current year have been increased to reflect this.
Building Permits & Planning Fees – The decrease in these revenue sources reflect activity in the construction
industry. These revenues are difficult to predict and staff will continue to closely monitor them.
All other variances are within normal ranges.
Item 12.b. - Page 28
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
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General Fund Expenditures
Most departmental expenses are under the 50% budget mark with total FY 2015-16 expenses at 50% of budget. Individual
department/division differences between the current and prior fiscal year are highlighted in the table shown on the next
page. This fiscal year, there is an increase of approximately $469,800 in General Fund expenditures over the original
budget. A portion of this increase reflects carryovers of $361,600 from unspent expenditure and project budgets in the
prior fiscal year, $26,510 in appropriations previously approved during the course of the first half of the current fiscal year
and $81,650 in mid-year requests included in this report.
Actual
Title Budget Actual %Budget Actual %Change
City Manager 389,640$ 190,312$ 49%527,090$ 162,859$ 31%27,453$
Legislative & Info Svcs 414,440 192,219 46%411,290 177,933 43%14,286$
Retirees 205,000 68,448 33%200,000 64,557 32%3,891$
City Attorney 248,200 98,775 40%225,250 153,144 68%(54,369)$
Administrative Services 787,640 371,549 47%772,690 356,614 46%14,935$
Planning 805,140 300,434 37%770,790 299,782 39%652$
Information Technology 533,615 211,458 40%372,555 193,051 52%18,407$
Non Departmental 2,667,694 2,074,138 78%3,346,239 2,004,039 60%70,099$
Police 6,109,240 2,834,104 46%5,720,944 2,489,449 44%344,655$
Building & Life Safety 265,040 114,513 43%270,740 118,488 44%(3,975)$
Engineering 472,900 206,170 44%370,130 153,165 41%53,005$
Recreation Services 1,001,565 433,004 43%834,590 401,546 48%31,458$
Public Works 1,916,475 880,766 46%1,695,700 754,562 44%126,204$
Total 15,816,589$ 7,975,890$ 50%15,518,008$ 7,329,189$ 47%646,701$
Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year
City Attorney – the decrease is primarily due to one-time expenses in the prior year.
Police – The majority of this increase reflects staffing vacancies in the prior fiscal year that are now filled.
Public Works – the majority of this increase reflects staffing vacancies in the prior fiscal year that are now filled.
All other variances are within a normal range.
Item 12.b. - Page 29
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
14
Long Term General Fund Forecast
The attached ten year forecast for the General Fund projects that expenditures will continue to outpace revenues over the
forecast period, unless circumstances change. The forecast assumes that revenues will continue increasing, although at a
slower rate, through FY 2019-20 and that an economic downturn will occur beginning in 2020-21. It also assumes PERS
cost increases as projected by the City’s contract actuary, which are substantial. Modest increases to operating
expenditures are built into the model. The forecast makes a number of assumptions that may or may not come to fruition
as assumed, therefore it is necessary to update frequently as new information becomes available. Based on these
assumptions, the forecast predicts that the entire General Fund balance would be depleted by the end of the ten year
period. However, it is important to note that the forecast does not make any revenue or expenditure decisions, it simply
provides a framework for future decisions and understanding potential long term implications of decisions made today.
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
In
t
h
o
u
s
a
n
d
s
Forecast General Fund
Revenue vs Expenditure Gap
Rev
Exp
Item 12.b. - Page 30
City of Arroyo Grande
Mid-Year Budget Report – 2015/16 February 23, 2016
15
Other Funds
Local Use Tax Fund (Fund 218)
This fund has been established to account for the ½ cent sales tax increase that was approved in November 2006. With
four months of sales, this revenue source is at 35%. Based on past trends, revenues are on track to meet estimates. The
estimated fund balance at the end of FY 2015-16 in this fund is $230,400, which reflects appropriating $76,978 to offset the
loss of Gas Tax revenues, as previously discussed.
CIP (Capital Improvement Program) Fund (Fund 350)
The procedures of the CIP require that revenues equal expenses in this fund, which means the fund does not typically
have a fund balance at year-end. If additional expenses are encountered in completing a project, funding must be found
to match the expenses. In reverse, when additional revenues are found, the scope of the project can be expanded,
previous funding returned to other funds, or revenues returned to the source.
Attachments
A brief overview of the attached schedules is provided to inform the reader of the purpose of each schedule.
Schedule A - Fund Balance. This schedule is provided to incorporate prior year fund balance into the current year
and to summarize the FY 2015-16 budget adopted by the City Council. This schedule includes adjustments that have
previously been approved by the City Council and lists the current requested adjustments in total.
General Fund Summary. This schedule provides a summary of the revenues, expenditures and fund balance with
actual results for the prior fiscal year as well as the original FY 2015-16 and FY 2016-17 Budget and proposed amended
balances for FY 2015-16 and FY 2016-17.
General Fund Forecast.
Item 12.b. - Page 31
Fund Balance
All Funds Operating Budget
2015-16 Mid-Year Budget Update
Schedule A
Estimated Estimated
Total Total
Available Available
Fund Balance Original Adjustment Operating Operating FY 2014-15 Budgeted Adjustments to Fund Balance
July 1, 2015 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2016
General Fund
010 General Fund:$5,946,521 $12,853,200 $125,450 $2,527,400 $76,694 $284,865 $15,346,870 $108,160 $5,635,982
Special Revenue Funds:
210 Fire Protection Impact Fees $169,601 $20,500 $0 $0 $0 $4,700 $0 $0 $185,401
211 Public Access Television 160,164 600 0 0 110,000 50,000 0 0 764
212 Police Protection Impact Fees 19,286 3,300 0 0 1,400 3,500 0 2,700 14,986
213 Park Development Fees 962,607 63,200 0 0 33,500 182,300 0 0 810,007
214 Park Improvement Fees 159,473 25,700 0 0 20,000 5,900 0 0 159,273
215 Recreation Community Center 57,329 3,800 0 0 25,324 15,076 0 0 20,729
216 Grace Lane Assessment District 61,264 10,600 0 0 3,400 0 13,300 0 55,164
217 Landscape Maintenance District 9,424 5,900 0 0 2,400 0 5,700 0 7,224
218 Local Use Tax Fund 1,541,567 2,200,100 0 0 2,047,178 818,010 250,200 395,850 230,429
219 Parkside Assessment District 390,524 43,500 0 0 4,400 20,700 0 408,924
220 Streets 31,000 423,400 (29,828)381,928 83,900 31,000 691,600 0 0
222 Traffic Signal 641,605 33,000 0 0 20,280 0 (4,500)658,825
223 Traffic Circulation 54,644 200 0 0 0 0 54,844
224 Transportation Facility Impact 1,843,607 150,000 0 0 870,000 866,800 0 28,700 228,107
225 Transportation 0 429,300 0 0 409,300 20,000 0 0
226 Water Neutralization Impact 282,812 52,000 200,000 53,250 349,350 102,100 30,112
230 Construction Tax 3,277 0 0 0 3,267 0 0 0 10
231 Drainage Facility 21,456 0 0 0 177 21,200 0 0 79
232 In-Lieu Affordable Housing 182,283 400 109,900 0 75,000 0 217,583
233 In-Lieu Underground Utility 3,971 0 0 0 0 0 0 3,971
240 Tourism Business Improvement District 106,717 195,000 (5,000)5,000 0 183,000 0 118,717
241 Water Availability Fund 1,876,179 48,000 0 0 172,200 180,350 0 0 1,571,629
250 CDBG Grant Funds 0 73,993 111,618 0 0 111,618 73,993 0 0
271 State COPS Block Grant 119,193 100,300 0 0 19,300 80,996 81,000 0 38,197
Total Special Revenue Funds $8,697,983 $3,882,793 76,790 $696,828 $3,805,746 $2,444,980 1,763,843 $524,850 $4,814,975
City of Arroyo Grande
16
Item 12.b. - Page 32
Fund Balance
All Funds Operating Budget
2015-16 Mid-Year Budget Update
Schedule A
Estimated Estimated
Total Total
Available Available
Fund Balance Original Adjustment Operating Operating FY 2014-15 Budgeted Adjustments to Fund Balance
July 1, 2015 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2016
City of Arroyo Grande
Capital Project Funds:
350 Capital Improvement Fund $34,838 $264,570 $4,330,980 $3,047,119 $3,848,882 $3,311,689 $482,098 $34,838
Total Capital Project Funds $34,838 $264,570 $4,330,980 $3,047,119 $0 $3,848,882 $3,311,689 $482,098 $34,838
Enterprise Funds:
612 Sewer $1,078,347 $1,004,000 ($115,000)$0 $411,600 $262,159 $627,116 $75,000 $591,472
634 Sewer Facility 386,366 33,700 0 0 0 0 0 0 420,066
640 Water Fund 4,221,878 6,392,500 (430,700)390,550 5,240,205 382,112 2,582,583 50,000 2,319,328
641 Lopez Water 1,669,376 0 0 3,254,400 0 0 3,254,400 0 1,669,376
642 Water Facility 772,225 55,000 0 0 38,000 0 0 0 789,225
Total Enterprise Funds $8,128,192 $7,485,200 ($545,700)$3,644,950 $5,689,805 $644,271 $6,464,099 $125,000 $5,789,467
Trust and Agency Fund:
751 Downtown Parking 173,617 11,000 3,600 114,500 4,025 62,492
Total Trust & Agency Fund $173,617 $11,000 $0 $0 $3,600 $114,500 $4,025 $0 $62,492
Grand Total All Funds
$22,981,151 $24,496,763 $3,987,520 $9,916,297 $9,575,845 $7,337,498 $26,890,526 $1,240,108 $16,337,754
17
Item 12.b. - Page 33
FUND: 010 GENERAL FUND
2013-14 2014-15 ORIGINAL AMENDED ORIGINAL AMENDED
ITEM ACTUAL ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 3,686,936$ 4,942,735$ 4,468,644$ 5,946,521$ 4,420,674$ 5,635,982$
Revenues:
Revenues 12,514,554 13,926,223 12,853,200 12,978,650 13,335,100 13,286,400
Transfers In 2,390,995 2,539,503 2,445,700 2,527,400 2,444,700 2,505,000
Prior Year Unexpended Balance - 250,000 250,000 250,000 250,000
Total Revenues 14,905,549 16,465,726 15,548,900 15,756,050 16,029,800 16,041,400
Expenditures:
Salaries and Benefits 8,648,137 8,707,086 10,195,855 10,260,555 10,524,605 10,593,205
Current Expenses 4,276,451 4,801,378 4,844,000 5,124,775 5,066,900 5,076,500
Debt Service 192,437 181,076 246,215 246,215 246,215 246,215
Capital Outlay 398,650 97,077 60,800 108,350 59,100 59,100
Transfers Out 134,075 1,675,323 - 76,694 - 5,000
Contingency - - - - - -
Total Expenditures 13,649,750 15,461,940 15,346,870 15,816,589 15,896,820 15,980,020
Total Operating Increases (Decreases)1,255,799 1,003,786 202,030 (60,539) 132,980 61,380
Prior Year Unexpended Balance - - (250,000) (250,000) (250,000) (250,000)
Total Adjustments to Fund Balance 1,255,799 1,003,786 (47,970) (310,539) (117,020) (188,620)
Available Fund Balance 4,942,735$ 5,946,521$ 4,420,674$ 5,635,982$ 4,303,654$ 5,447,362$
FISCAL YEAR 2015-16 FISCAL YEAR 2016-17
GENERAL FUND SUMMARY
18
Item 12.b. - Page 34
General Fund Ten Year Financial Plan
(Minimum 15% Fund Balance Policy/20% Fund Balance Goal)
Actual Audited Budget Budget
In Thousands 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
REVENUES & OTHER SOURCES
Sales Tax - General 3,401$ 3,391$ 3,493$ 3,597$ 3,705$ 3,742$ 3,779$ 3,666$ 3,483$ 3,239$ 3,239$ 3,271$
Sales Tax - Proposition 172 142 150 110 110 113 114 116 112 107 99 99 100
Property Tax 3,981 4,260 4,239 4,420 4,575 4,643 4,736 4,594 4,456 4,323 4,323 4,366
Transient Occupancy Tax 841 922 959 988 1,018 1,048 1,080 1,096 1,096 1,096 1,096 1,096
Transient Occupancy Tax - New Hotel 100 135 175 175 175 175 175
Business Licenses 86 90 95 97 100 103 106 109 113 116 119 123
Franchise Fees 595 612 581 593 605 617 629 642 655 668 681 695
Real Property Transfer Tax 105 109 95 95 98 101 104 107 110 114 117 121
Property Tax in lieu of VLF 1,268 1,361 1,419 1,486 1,538 1,561 1,514 1,469 1,425 1,425 1,439 1,453
Other Subventions & Grants 161 241 179 115 117 120 122 124 127 130 132 135
Recreation Fees 733 739 702 718 740 762 785 809 833 858 884 911
Permits & Licenses 263 340 324 330 340 350 361 372 383 394 406 419
Community Development Charges 179 214 239 248 253 258 263 268 274 279 285 291
Other Service Charges 27 200 115 74 75 77 79 80 82 83 85 87
Fines & Forfeitures 45 44 42 42 43 44 45 45 46 47 48 49
Use of Money & Property 320 338 350 355 362 369 377 384 392 400 408 416
Other Revenues 368 915 37 18 19 19 20 20 21 22 22 23
Transfers
Transfer from Local Sales Tax Fund 150 193 262 266 271 277 282 288 294 300 306 312
Personnel, Cost & Operating Transfers 2,240 2,346 2,265 2,239 2,244 2,300 2,357 2,416 2,477 2,539 2,602 2,667
Total Revenues 14,905 16,465 15,506 15,791 16,215 16,605 16,889 16,778 16,547 16,305 16,466 16,708
19 Item 12.b. - Page 35
Actual Audited Budget Budget
In Thousands 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
EXPENDITURES & OTHER USES
Salary & Benefits 8,521 8,574 10,056 10,388 10,732 11,056 10,906 11,261 11,475 10,645 10,764 10,853
PERSable compensation 4,573 5,269 5,389 5,459 5,568 5,680 5,816 5,839 5,860 5,882 5,902
PERS Costs 1,519 1,978 2,144 2,327 2,470 2,123 2,238 2,347 1,423 1,461 1,500
Part Time/non-PERSable compensation 1,001 1,126 1,134 1,162 1,191 1,227 1,270 1,308 1,341 1,368 1,381
Insurance (including Workers Comp)1,080 1,258 1,288 1,320 1,353 1,393 1,442 1,485 1,522 1,553 1,568
Medicare, FICA, other 401 425 433 464 473 483 494 496 498 500 502
Pre-fund Retiree Medical Costs 200 132 205 205 205 205 205 205 205 205 205 205
Operating Programs 4,281 4,801 5,125 5,076 5,228 5,385 5,547 5,713 5,856 6,002 6,122 6,184
Reductions in services (200) (200) (200) (200)
Debt Service 192 181 246 246 246 77 77 77 77 77 77 77
Capital Outlay 455 97 108 59 60 60 65 65 75 75 75 75
Capital Improvement Projects 1,676 40 40 60 60 75 75 75 75
Vehicle Replacements 250 260 270 280 290 300 310
Technology Replacements 150 160 170 180 190 200 210
Transfers Out 77 5 5 5 5 5 5 5 5 5
Total Expenditures 13,649 15,461 15,817 15,979 16,516 17,228 17,285 17,826 18,028 17,364 17,623 17,794
Revenues Over (Under) Expend.1,256 1,004 (311) (188) (301) (623) (395) (1,048) (1,482) (1,059) (1,156) (1,086)
323 333 333 344 - - - -
1,256 1,004
Fund Balance Goal-20% Expenditures 2,730 3,092 3,163 3,196 3,303 3,446 3,457 3,565 3,606 3,473 3,525 3,559
AVAILABLE FUND BALANCE
START OF YEAR 3,687 4,943 5,947 5,636 5,448 5,470 5,181 5,119 4,414 2,933 1,873 717
END OF YEAR 4,943 5,947 5,636 5,448 5,470 5,181 5,119 4,414 2,933 1,873 717 (369)
FUND BALANCE POLICY - Excess/(Gap)2,213 2,855 2,473 2,252 2,167 1,735 1,662 849 (673) (1,599) (2,808) (3,928)
Ending Fund Balance %36%38%36%34%33%30%30%25%16%11%4%-2%
Unspent appropriations (incr. fund bal)
Total Operating Excess/(Deficit)
20 Item 12.b. - Page 36
PROJECTION FACTORS 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
DEMOGRAPHICS
Population 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Housing Units 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Inflation 2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%
Compound Pop & Inflation 3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%
KEY REVENUES
Sales Tax 3.0%1.0%1.0%-3.0%-5.0%-7.0%0.0%1.0%
Property Tax 3.5%1.5%2.0%-3.0%-3.0%-3.0%0.0%1.0%
TOT 3.0%3.0%3.0%1.5%0.0%0.0%0.0%0.0%
Business License/Tax
Franchise Fees 2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%
Motor Vehicle In Lieu 3.5%1.5%-3.0%-3.0%-3.0%0.0%1.0%1.0%
Development Review Fees
Recreation Fees
EXPENDITURES
Salary 2.0%2.0%2.0%2.0%0.0%0.0%0.0%0.0%
PERS Benefits 8.5%6.2%-14.0%5.4%4.9%-39.4%2.7%2.6%
Non-PERS Benefits 2.5%2.5%3.0%3.5%3.0%2.5%2.0%1.0%
Operating Programs 3.0%3.0%3.0%3.0%2.5%2.5%2.0%1.0%
Debt Service
2016-17 Projection Plus Compound Population and Inflation
2016-17 Projection Plus Compound Population and Inflation
Based on Lease Purchase Contract for Vehicle Replacement
TEN YEAR FINANCIAL PLAN PROJECTIONS
2016-17 Projection Plus Compound Population and Inflation
21 Item 12.b. - Page 37
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Item 12.b. - Page 38