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CC 2019-01-08_11a City Manager Presentation_PPA Transition Presentation to the Fifty-Third City Council 1 Objectives Appreciation Show our commitment Celebrate this organization and its accomplishments during its 107 year history; remember why we are on this journey Transition, alignment, continuation and change Future Oriented 2 Our 107th year Reason for Being – To create better lives for all who reside, work, and visit the City of Arroyo Grande. Generally through: Local regulations and revenue collection Provision of enhanced services that improve public health and safety Creation of publicly owned infrastructure Reducing transaction costs for increased commerce. 3 4 5 6 7 8 History of Success It is hard to argue that the City of Arroyo Grande has not been incredibly successful in this mission. Drinking water Sanitary Sewers Storm water and flood control Police and Fire services Paved roads Sidewalks Solid waste and recycling Building safety Quality built environment Recreation opportunities 9 Current Budget Two year budget Utilized forecasting to be more proactive Focused on solving a forecasted imbalance Focused on core and essential services Proactive on prioritizing and making hard decisions for the long-term benefit of the community Forward looking to enhanced revenue 10 11 12 Tempus Fugit FY 2018-19 July 1, 2018 – June 30, 2019 FY 2019-20 July 1, 2019 – June 30, 2020 FY 2020-21 July 1, 2020 – June 30, 2021 Election 2020 Start Budget Process FY 2020-22 Now 13 14 Upcoming Notable Agenda Items Brisco Halcyon Interchange preferred alternative Five Cities Fire Authority Joint Powers Agreement Mid year budget Adoption of second year of budget (FY 2019-20) Halcyon Streets Plan East Grand Avenue Master Plan Circulation Element 15 Challenges Outside influence New regulations and requirements will impact staff resources Underfunded maintenance will slowly decrease existing infrastructure and assets Population growth and active reduction of discretion in land use decisions 16 Outside Influence Compete with core service funding State Legislature New Laws Minimum Wage Increases Partner Agencies Economy Health Care Costs Pension Costs Claims 17 PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT PARKS AND OPEN SPACE Estimate of Total Improvements $4,881,775 Annual Depreciation / Set-Aside $ 209,907 FY 2018-19 Funding $ 86,000 Additional Funding Needed $ 123,907 18 PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT GOVERNMENT BUILDINGS Estimate of Total Improvements $4,684,874 Annual Depreciation / Set-Aside $ 121,588 FY 2018-19 Funding $ 0 Additional Funding Needed $ 121,588 19 PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT DRAINAGE FACILITES Estimate of Total Improvements $32,161,707 Annual Depreciation / Set-Aside $ 238,107 FY 2018-19 Funding $ 392,500 Additional Funding Needed $ 154,393 20 PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT ROADS Estimate of Total Improvements $ 180,000,000 Annual Depreciation / Set-Aside $ 3,023,584 FY 2018-19 Funding $ 1,164,500 Additional Funding Needed $ 1,859,084 21 Infrastructure Assessment Reports - Sidewalks Estimate of Total Improvements $ 34,912,500 Annual Depreciation / Set-Aside $ 232,750 FY 2018-19 Funding $ 110,000 Additional Funding Needed $ 122,750 22 Population Growth World Population - Growing at 2.5 people every second National Population – Growing at 1 person every 18 seconds State Population - Growing at 1 person every 1.7 minutes County Population - Growing at 1 person every 2.44 days City Population – Growing at 1 person every 10 days 23 24 State Housing Requirements The State wants us to permit 69.2 units per year 25 The State’s Ideal Vision State wants us to grow at 1 person every 2 days based on RHNA allocation and the state average of 2.81 persons per unit Over 5 times as fast as what we did last year for the next 10 years The State Legislature is taking away discretionary powers from local government to get the housing. 26 Funding Spheres 27 107 Years of Success 28 29