CC 2021-05-25_08e FY 2020-21 Third Quarter Financial Status ReportMEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, CITY MANAGER
BY: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER
FINANCIAL STATUS REPORT
D ATE: MAY 25, 2021
SUMMARY OF ACTION:
Consider and file the Fiscal Year (FY) 2020-21 Third Quarter Financial Status Report.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Preparation of the Third Quarter Financial Status Report requires staff time within the
existing work plan and budget for the Administrative Services Department. At the end of
the third quarter, FY 2020-21 revenues for the General Fund were $12.3 million, or 89%
of the budgeted target amount for the first nine months. Actual third quarter expenditures
were $12.6 million, or 91% of the budgeted target amount for the first nine months.
RECOMMENDATION:
It is recommended that the City Council consider, receive, and file the Fiscal Year (FY)
2020-21 Third Quarter Financial Status Report.
BACKGROUND:
Third Quarter Financial Report
Each fiscal year, the City Council adopts a budget, which commits government resources
and services to accomplish the City’s mission of making Arroyo Grande the best place
possible for everyone who lives, works, and visits here. The Third Quarter Financial
Status Report is the third of four financial performance reports that staff will present to
Council during the 2020-21 fiscal year.
The purpose of the FY 2020-21 Mid-Year Financial Status Report is to:
•Compare third quarter revenues received and expenditures incurred to the third
quarter of the prior year and to the budgeted target to determine the City’s financial
performance;
•Provide explanations for key account variances and identify any potential trends
that might impact financial planning; and
•Provide other key third quarter information including headcount statistics,
completed Capital Improvement Projects, and requests for City Council approval
on Budget Adjustment Requests that have not previously been approved.
Item 8.e. - Page 1
CITY COUNCIL
CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER FINANCIAL STATUS
REPORT
MAY 25, 2021
PAGE 2
The City’s actual third quarter financial results will be compared to both the prior year’s
third quarter and the budgeted target (“Target”). The Target is calculated as three fourths
(75%) of the FY 2020-21 Budget, or basically nine equal months of the budget.
ANALYSIS OF ISSUES:
Third Quarter (Q3) Revenue and Expenditures Compared to Prior Year
Current Year Q3 Actuals Compared to Prior Year Q3 Actuals
The General Fund is the primary operating fund of the City and accounts for resources
and services traditionally associated with government. General Fund revenue at the third
quarter of this year was $485,000 lower than the third quarter of the prior year.
Expenditures were also $2.0 million lower at the third quarter of the current fiscal year
versus the third quarter of the prior year. A more thorough explanation of third quarter
variances is set forth in the attached financial report. The following is a summary of the
third quarter variances between the two fiscal years.
Revenue ($485,000 lower)
The majority of the $485,000 variance between the third quarter of this year and the prior
third quarter is related to one-time revenue received in the third quarter of FY 2019-20
that was not received in the third quarter of FY 2020-21.
• The majority of the revenue variance can be explained by one-time Senate Bill
1090 – Diablo Canyon Nuclear Power Plant funds of $780,000 that were received
in the first half of FY 2019-20 and recognized as revenue, creating an unfavorable
variance between the first half of FY 2019-20 and FY 2020-21.
• The one-time Coronavirus Relief Funds of $218,000 were recorded as revenue in
the first half of FY 2020-21. This created a favorable variance in the current year
when compared to the prior year.
Expenditures ($2.0 million lower)
As mentioned, third quarter expenditures compared to the prior year were lower by $2.0
million. The majority of the variance between the two fiscal quarters is related to timing
and payment of the of the City’s Unfunded Accrued Liability (UAL) retirement payment.
Third Quarter
FY 2020-21
Third Quarter
FY 2019-20 Variance
Revenue 12,325,351$ 12,810,201$ (484,851)$
Expenditures 12,636,657$ 14,683,101$ (2,046,444)$
General Fund
Item 8.e. - Page 2
CITY COUNCIL
CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER FINANCIAL STATUS
REPORT
MAY 25, 2021
PAGE 3
Third Quarter (Q3) Revenue and Expenditures Compared to Target
Current Year Q3 Actuals Compared to Target
The table above compares third quarter actual results to the budgeted Target. Third
Quarter actual revenue was well short of the Target by $1.47 million. Third Quarter actual
expenditures were also short of the Target by $1.3 million. The following is a summary of
the third quarter revenue and expenditure variances compared to the budgeted Target. A
more thorough explanation of third quarter variances is set forth in the attached financial
report.
Revenue ($1.47 million lower)
The third quarter revenue shortfall compared to the Target is not unusual. Revenue
realization is typically low in the third quarter of the fiscal year due to the time lag involved
in billing cycles and the receipt of reimbursements. Some of the larger revenue variances
are explained below.
• The largest single source of City revenue is Secured Property Tax. Secured
Property Tax is billed by the County to property owners and payable in two (2)
installments. Property owners typically receive their first property tax bill at the end
of September or early October, with a due date of November 1st. The majority of
property tax related to the first installment was received in December 2020. The
second installment is due on April 1st and will be reflected in the fourth quarter
report.
• Similar to property tax, sales tax realization in through third quarter is lower due to
the time lag involved in billing cycles and the receipt of the City’s sales tax payment
from the State. Actual sales tax revenue received in the third quarter report
represents seven months of payments (July – January).
• Actual first quarter Transient Occupancy Tax (TOT) revenue includes the eight
months of July through February, whereas the Target represents six. Lodging
facilities have thirty days after the month’s end to make their TOT payment.
Fortunately, TOT revenue for the first eight months of the fiscal year is higher than
what was budgeted for those eight months.
• Property Tax in Lieu of Vehicle License Fees is received in two installments during
the fiscal year. Typically, the revenue is received in the months of January (3rd
quarter) and June (4th quarter).
FY 2020-21
Third Qtr Actuals
FY 2020-21
Third Qtr Target Variance
Revenue 12,325,351$ 13,794,485$ (1,469,134)$
Expenditures 12,636,657$ 13,941,633$ (1,304,975)$
General Fund
Item 8.e. - Page 3
CITY COUNCIL
CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER FINANCIAL STATUS
REPORT
MAY 25, 2021
PAGE 4
Expenditures ($1.3 million lower)
Actual third quarter expenditures were $1.3 million under the Target. Most of the City’s
departments are under their spending targets. Some of the more significant savings is
occurring in the Police and Community Development Departments. However, offsetting
other favorable variances is an unfavorable variance of $608,200 in the Administrative
Services Department.
• The Administrative Services Department variance is attributed to the timing of the
Five Cities Fire Authority (FCFA) payment. In the third quarter, a $513,000
payment to FCFA was paid in full and recorded in the 4145-Non Departmental
division, which falls under the Administrative Services Department budget. This
payment included the City’s fourth quarter obligation to the FCFA that is due on
April 1st but was paid at the end of March, creating an unfavorable variance when
compared to target.
• Other favorable departmental variances compared to the target include salary
savings, lower contractual service spending at mid-year, and the timing of the
City’s insurance payments.
ALTERNATIVES:
1. Receive and file the Fiscal Year 2020-21 Third Quarter Financial Status Report; or
2. Provide other direction to staff regarding the FY 2020-21 Third Quarter Financial
Status Report; or
3. Provide other direction to staff.
ADVANTAGES:
The financial report presents an updated review of the City’s financial performance in the
third quarter of FY 2020-21. Reporting on financial performance is one of the Top 10
Council priorities for FY 2020-21.
DISADVANTAGES:
No disadvantages have been identified at this time.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENT:
1. Fiscal Year 2020-21 – Third Quarter Financial Status Report
Item 8.e. - Page 4
Page 1
City of Arroyo Grande
Fiscal Year 2020-21
Third Quarter Financial Status Report
INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the third quarter of Fiscal Year
(FY) 2020-21. The purpose of this report is to update the public and the City Council on the City’s financial
position at the end of the third quarter of the fiscal year, and compare actual results to the prior year and
the budgeted Target, calculated at 75% of the Budget, to determine the City’s performance. The third
quarter timeframe is July 1 through March 31, 2021.
The financial report is organized in the following sections:
Section 1 – an overview of City’s financial position at the
end of the third quarter of the FY 2020-21. This includes a
comparison of third quarter results between the current
and prior year. In addition, third quarter results will be
compared to the budgeted Target (75% of budget). As part
of the analysis, brief explanations of significant revenue
and expenditure variances are included.
Section 2 – a listing of any personnel changes occurring
during the third quarter and a summary of headcount by
department. This section also includes the City’s calculated
vacancy rate.
Section 3 – an update on the Capital Improvement Projects
(CIP) managed by the Public Works and Community
Development Departments. This section includes CIP that
were completed in the third quarter along with their final
costs.
Section 4 – a listing of Budget Amendment Requests (BAR)
previously approved by Council and completed in the third quarter.
CITY COUNCIL PRIORITIES:
FISCAL STABILITY
One of the Top 10 Council
Priorities for FY 2020-21
includes continuing to ensure
fiscal stability for the
organization throughout the
planning, budgeting, and
expenditure process. This
includes preparing and
presenting year-end and
quarterly financial reports to
Council.
Attachment 1
Item 8.e. - Page 5
Page 2
SECTION 1: OVERVIEW OF FINANCIAL POSITION
CITY FUND STRUCTURE
The overall City budget is comprised of many individual funds, which are categorized below. This financial
report will focus primarily on the General Fund but will also report on all Governmental Funds.
General Fund – The General Fund is the primary operating fund of the City, which accounts for resources
and services traditionally associated with government.
Special Revenue Funds – Special revenue funds are used to account and report the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified purposes other than debt
service or capital projects.
Debt Service Funds – This fund is used to account for the accumulation of resources and payment of long-
term debt principal interest. This includes the USDA loan issued by the City to finance the relocation of
City Hall.
Enterprise Funds - An enterprise fund is a separate accounting and financial reporting mechanism for
which revenues and expenditures are segregated into a fund with financial statements separate from all
other governmental activities. These funds include Water and Sewer services provided to City residents.
Private Purpose Fund – The private-purpose fund was created to hold the assets of the former
Redevelopment Agency of the City of Arroyo Grande until they are distributed.
Agency Funds – Agency funds are funds that the City holds on behalf of another entity. Currently, there
are two Agency funds. One is the Sanitation District fund, which accounts for the receipt and remittance
of wastewater processing fees on behalf of the South San Luis Obispo County Sanitation District. The other
is the Downtown Parking Fund, which collects assessments from Arroyo Grande Village merchants within
the boundaries of the Parking and Business Improvement Area for maintenance of the Village parking lots.
The following chart below shows an overview of the City’s fund structure.
Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking
Administrative Services Public Access Television Sewer Facility Sanitation Distribution
Community Development Police Protection Impact Water
Police Department Park Development Water Facility
Recreation Services Park Improvement Lopez Water
Public Works Recreation Community Center
Grace Lane Assessment District
Parkside Assessment District
Street (Gas Tax)
Traffic Signalization
Traffic Circulation
Transportation Facility Impact
Transportation
In-Lieu Water Neutralization
In-Lieu Affordable Housing
Tourism Business Improvement Dist.
Water Availability
CDBG Grant Fund
State COPS Block Grant Agency FundsSpecial Revenue FundsFIDUCIARY FUNDSGOVERNMENTAL FUNDS
ALL FUNDS
PROPRIETORY FUNDS
General FundDebt Service FundsEnterprise FundsPrivate Purpose FundItem 8.e. - Page 6
Page 3
CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns through the end of the third quarter of FY 2020-
21 and compares the current quarter results against the prior year’s results for all Governmental Funds
as well as the City’s General Fund. The calculated percentages in the table reflect the third quarter actuals
for both revenue and expenditures, divided by that fiscal year’s annual budget.
Table 1
GENERAL FUND IMPACTS
The following discussion focuses on the City’s General Fund performance. Chart 1 starts off with a simple
overview of General Fund performance compared to the Target. Next are expenditures by category (Table
2). This is followed by a summarized look at FY 2020-21 third quarter actual expenditures compared to
the Target (Table 3). Lastly, a discussion of General Fund revenue is included, which compares third
quarter actual results to the Target (Table 4). The Target is calculated as three-fourths (75%) of the FY
2020-21 Budget and represents the 9-month period from July 2020 through March 2021. Using the Target
as a comparator against actual results provides a simplified method to evaluate performance for the
quarter.
Chart 1
Chart 1 shows a simple comparison
of actual third quarter revenue and
expenditures to the Target. The
actual third quarter General Fund
revenue is less than the budgeted
Target by $1.5 million, which is not
unusual because revenue
realization is typically lower than
the Target through the third
quarter due to the time lag
involved in billing cycles and the
receipt of reimbursements.
Likewise, actual expenditures
through the third quarter totaled $12.6 million, or 68% of the full year’s Budget, and are under the Target
Third Quarter
FY 2020-21
Third Quarter
FY 2019-20 Variance
Revenue 68%71%-3%
Expenditures 53%56%-3%
Third Quarter
FY 2020-21
Third Quarter
FY 2019-20 Variance
Revenue 67%68%-1%
Expenditures 68%71%-3%
Governmental Funds
General Fund
Item 8.e. - Page 7
Page 4
by $1.3 million. A more detailed discussion on General Fund revenue and expenditure variances is
included later in this report.
Table 2
Table 2 reflects major expenditure cost
categories within the General Fund. This
chart is intended to explain where the City’s
resources were spent during the third
quarter. Within the total expenditures of
$12.6 million, 61% of the City’s costs are
associated with personnel, 37% with
operating and maintenance, and 2% with
transfers to other funds.
Table 3 reflects the third quarter status of all General Fund operating departments. Some departments
include multiple divisions. The divisions are consolidated under their respective department, rather than
reflected individually within the table.
Table 3 – General Fund Expenditures by Department
Overall, third quarter expenditures were $1.3 million under the Target. Most of the City’s departments
are under their spending targets. Some of the more significant savings occurred in the Police and
Community Development Departments. However, offsetting other favorable variances is an unfavorable
variance of $608,200 in the Administrative Services Department, which was expected. A more detailed
explanation of key expenditure variances by individual department/division is provided below.
KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR
FISCAL YEAR 2020-21
The Non Departmental Division of the Administrative
Services Department is set up to capture overhead costs
that are general in nature and cannot be linked to any
one department or division. For example, this Division
includes all of the City’s insurance costs, utilities costs,
City Administration 1,012,300$ 759,225$ 548,404$ 210,821$
Legislative & Information Services 1,030,652 772,989 651,422 121,567
Administration Services 5,956,529 4,467,397 5,075,578 (608,182)
Community Development 1,990,866 1,493,149 938,689 554,460
Police Department 5,666,843 4,250,132 3,523,305 726,827
Recreation Services 961,620 721,215 583,348 137,867
Public Works 1,970,034 1,477,526 1,315,911 161,614
TOTAL EXPEDITURES 18,588,844 13,941,633 12,636,658 1,304,974
General Fund Department
General Fund Department Variances - Third Quarter
2020-21 Adjusted
Budget
2020-21 Q3
Actuals
Dollar
Fav/(Unfav)
2020-21 Q3
Target
Department: Administrative Services
Division: 4145-Non Departmental
Issue: Timing differences in quarterly
payments for Five Cities Fire Authority
Impact to General Fund: $608,200 overage
FY 2020-21 % of
Q3 Acutals Actuals
Personnel Costs 7,712,276$ 61.0%
Operating Costs 4,712,244 37.3%
Debt Service 53,023 0.4%
Captial Outlay 12,639 0.1%
Transfers Out 146,475 1.2%
Total 12,636,657$
Expenditure Category
Item 8.e. - Page 8
Page 5
and payment to the Five Cities Fire Authority (FCFA). As mentioned earlier, the Department is reflecting a
$608,200 unfavorable variance through the third quarter. The variance is attributed to the timing of the
Five Cities Fire Authority (FCFA) payment. The City’s fourth quarter obligation to the FCFA is due on April
1st but was paid at the end of March creating an unfavorable variance when compared to target, which
was expected.
The Community Development Department includes the
functions of Planning, Engineering, and Building &
Safety Divisions. The majority of the favorable variance
in this department can be attributed to salary savings
and lower spending in contractual services. Salary
savings within Community Development is attributed to a number of staffing variances that occurred
through the third quarter of the fiscal year and include:
• The Community Development Director position remained vacant for five months when the
former Community Development Director was appointed as the City Manager in early September
2020. The savings amounted to roughly $86,000 through February when the position was filled.
• One of the recommendations approved in the FY 2020-21 Adopted Budget was to delay the hiring
of the Permit Technician position through the first quarter. The vacancy of the Permit Technician
positon in the Engineering division continued through the end of the second quarter resulting in
labor savings of approximately $55,000 compared to the Target. The Permit Technician position
was filled in early January 2021.
• One Community Development Department staff member was on maternity leave for a portion of
the first quarter and returned to work at less than full-time, saving approximately $35,000.
• The part-time CDD Intern position remained vacant through third quarter.
• Contractual services were budgeted for on-call engineering services; however, none of the
budgeted services were incurred through third quarter resulting in a favorable variance of
$60,000 to the Target.
• Contractual services for plan check and inspection costs were lower than the Target by
approximately $65,000.
• Minimal contractual services for the Planning Division were incurred through third quarter
resulting in $143,000 of favorability to the Target; however, it is anticipated that payments for
consulting services for projects such as updates to the Housing and Circulation Elements will
occur in the remainder of the fiscal year.
For simplicity, Police Services will be analyzed in total
rather than by individual divisions. The majority of the
Police Department’s favorable variance is attributed to
salary savings resulting from vacant permanent Police
Officer positions through third quarter. Some of the
more significant variances include:
• The Police Patrol Division experienced vacancies in three of its Police Officer positions. The costs
were lower than the Target by approximately $339,000.
• Other labor costs including health benefits and retirement costs were under the Target by $63,000
and $83,000 respectively.
Department: Community Development
Division: Various (4301, 4130, 4212)
Issue: Overall savings in salaries and
contractual services
Impact to General Fund: $554,500 savings
Department: Police Services
Division: Various (4201,4203,4204)
Issue: Overall savings in salaries and
benefits
Impact to General Fund: $727,000 savings
Item 8.e. - Page 9
Page 6
KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER
Table 4 – General Fund Revenue
As reflected in Table 4, third quarter actual revenue was short of the Target by $1.4 million, which is also
not unusual. Revenue realization is typically low at the end of the third quarter of the fiscal year due to
the time lag involved in billing cycles and the receipt of reimbursements. A more detailed discussion is
included below to help explain actual revenue variances through mid-year compared to the Target.
Property Tax –The majority of the City’s property tax revenue comes from Secured Property Taxes. This
tax is billed on a fiscal year (July 1- June 30) basis and is payable in two (2) annual installments. Property
owners typically receive their first property tax bill at the end of September or early October, with a due
date of November 1st. The majority of property tax related to the first installment was received in
December 2020. The second property tax bill installment is received in April 2021 and will be included in
the fourth quarter report. Property tax typically represents around 31% of the City’s annual revenue.
Sales Tax – Sales tax realization through third quarter is lower due to the time lag involved in billing cycles
and the receipt of the City’s sales tax payment from the State. Actual sales tax revenue received through
third quarter was $2.6 million and represents seven months of payments (Jul – Jan).
Transient Occupancy Tax (TOT) – TOT revenue is reflecting an $111,000 unfavorable variance to the
Target. The actual TOT revenue represents only eight months of TOT receipts due to the timing of
payments. Lodging facilities have thirty days after the month’s end to make their TOT payments. TOT
revenue is expected to exceed the current Adopted Budget by year’s end.
Property Tax in Lieu of Vehicle License Fees (VLF) – Property tax in lieu of VLF is received in two
installments during the fiscal year. Typically, the revenue is received in the months of January (3rd quarter)
and June (4th quarter). The first installment was received in January 2021; the second installment will be
reflected in the fourth quarter.
Property Tax 5,456,521$ 4,092,391$ 4,060,823$ (31,568)$
Sales Tax 4,401,649 3,301,237 2,603,695 (697,542)
Transient Occ. Tax 900,000 675,000 564,388 (110,612)
Property Tax in Lieu of VLF 1,822,740 1,367,055 911,370 (455,685)
Franchise Fees 690,000 517,500 367,225 (150,275)
License & Permit Fees 441,300 330,975 307,846 (23,129)
User Fees 443,800 332,850 326,313 (6,537)
Planning Fees 360,500 270,375 283,377 13,002
Recreation Fees 410,700 308,025 345,086 37,061
Transfers In 2,737,100 2,052,825 2,033,928 (18,897)
Other Revenue 728,336 546,252 521,301 (24,951)
TOTAL 18,392,646 13,794,485 12,325,351 (1,469,134)
General Fund Revenue Variances - Third Quarter
REVENUE BY CATEGORY 2020-21 Adjusted
Budget
FY 2020-21
Q3 Actual
Target vs Actual
(Unfav)/Fav
FY 2020-21
Q3 Target
Item 8.e. - Page 10
Page 7
License & Permit Fees – License and permit revenue fell short of the Target by $23,000. The majority of
the variance is due to fewer building permits being issued through third quarter than estimated to the
Target.
Franchise Fees – Only eight months of Waste Water Connection franchise fees were received through
third quarter. In addition, Charter Communications franchise fees earned in the third quarter will not be
paid and received until the fourth quarter. Due to the timing of these franchise fee collections, actual
revenue at the end of the third quarter is lower than the Target by $150,000.
Item 8.e. - Page 11
Page 8
SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS
POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (3rd Quarter)
Division 4204 – Police Department – Support Services
Delete 1.4 FTE Neighborhood Services Technician
Division 4130 – Community Development Department – Planning
Add 1.4 FTE Neighborhood Services Technician
FULL TIME EQUIVALENT (FTE) BY DEPARTMENT – PERMANENT STAFF ONLY
The following table reflects FTE staffing by department. The table only includes permanent staff and does
not include part-time or temporary staffing. While departments may hire part-time staff on a regular or
seasonal basis, they are not included in the analysis below.
Department Adopted
Budget
Headcount
(FTE’s)
Vacancies
(Third
Quarter)
% of Total
Staffing
Vacant Positions
City Manager 1.00 0.00 6.4%
Administrative Services 6.00 1.00 7.7% Director of Administrative
Services
Community Development 10.00 2.00 12.8% Permit Tech, Program Analyst
Legislative & Info Services 4.00 1.00 5.1% Deputy City Clerk
Police Services 29.00 3.00 37.2% Police Officers (3)
Public Works 21.00 1.00 27.0% Maintenance Worker I
Recreation Services 3.00 0.00 3.8%
Total 74.00 8.00 100%
EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of the third quarter of FY 2020-21 was 10.8%. This equates
to eight (8) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the
end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover
rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies
at the end of period. The costs associated with turnover includes the cost of advertising new positions,
training, overtime, lowered productivity, and workload balance. In the FY 2020-21 Budget, it was agreed
that the City Manager, Permit Tech, and Maintenance Worker positions were to remain vacant until after
the first quarter. These positions, other than the City Manager position which was appointed prior to the
end of the first quarter, remained vacant through the second quarter. In addition, a Police Officer position
was to remain vacant for the full year. The higher than normal vacancy rate can be attributed to the delay
in hiring these positions at the end of the third quarter.
Please note not reflected in this table or graph are a number of individuals out on Family Medical Leave
Act (FMLA) or Family First Coronavirus Response Act (FFCRA) leave during the third quarter creating
Item 8.e. - Page 12
Page 9
operational deficiencies being currently filled by temporary, consulting, or interim staff. This affected the
Administrative Services, Legislative & Information Services, Community Development, and Police
Departments during the third quarter. Additionally, throughout this fiscal year, every department has
experienced extended absences due to quarantine requirements following possible COVID-19 exposures
that have occurred largely outside of the workplace.
Item 8.e. - Page 13
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SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS
This information is provided to keep the Council apprised of the status of the City’s Capital Improvement
Projects (CIP). The projects listed below represent projects that were completed in the third quarter of FY
2020-21.
Project Title Comments
Total Amount
Budgeted for
Project
Total Final
Project Costs % Expended Funding
Sources
Vard Loomis Erosion Repair
Repair of an area where erosion had
created a cavity within a slope behind
homes
31,500 31,432 100%Sales Tax
Chevron Service Station
Corrugated Metal Pipe (CMP)
Repair
Stabilization of the CMP outlet area
where erosion and base failure had
occurred
28,774 28,774 100%
Sales Tax,
General Fund,
Sewer Fund
Bridge Street Bridge
Rehabilitation Project
Rehabilitation of the 112-year old two
lane bridge over Arroyo Grand Creek 8,719,310 8,052,630 92%
Federal
Highway Bridge
P rogram (HBR)
Bridge Street Bridge Habitat
Mitigation
Mitigation planting for the
Rehabilitation project and initiation of
the five-year monitoring and reporting
426,000 249,284 59%
Federal
Highway Bridge
P rogram (HBR)
Five Cities Fire Authority
(FCFA) Security Gate and
Fencing
Construction of fencing to secure the
rear area of the FCFA Station 1 25,509 23,190 91%Fire Impact
Fees
FY 2020-21 Third Quarter - Completed Capital Improvement Projects
Item 8.e. - Page 14
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SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS
The following third quarter budget adjustments were previously approved by Council or are classified as
administrative and not requiring Council approval.
$55,228 Capital Improvement Castillo Del Mar Extension Project: Increased the Revenue from Other
Government Agencies account by $31,125 to account for the additional contribution from Lucia Mar
Unified School District, and transferred $24,103 of Local Sales Tax funds from the Annual Pavement
Management Program budget for construction of Construction of the Castillo Del Mar Extension project.
Approved on 01/12/2021 Council meeting, item 8.l.
$31,981 Capital Improvement Ikeda Field Barrier Removal Project: Transferred $31,981 in Park
Improvement Fees to increase appropriations in the amount of $31,981 for the Ikeda Field Barrier
Removal Project. Approved on 01/26/2021 Council meeting, item 8.f.
No change to fund balance Capital Improvement Ikeda Field Barrier Removal: Reallocated $3,609 of
budgeted expenditures to better reflect anticipated actuals, including the Agreement for Consultant
Services with R. Burke Corporation for the Ikeda Field Barrier Removal Project. Approved on 03/09/2021
Council meeting, 8.e.
$124,000 Administrative Services Department: Appropriated funding for the Agreement for Consultant
Services with Management Partners for Human Resources and Financial Consultant Services from fund
balance in the amount of $124,000. Approved on 03/09/2021 Council meeting, item 8.d.
No change to fund balance Community Development Department: Reallocated $73,430 of budgeted
expenditures within the General Fund from the Police Department to the Community Development
Department to transfer the existing 1.4 full-time equivalent Neighborhood Services Technician position
and the associated costs. Approved on 02/23/2021 Council meeting, item 8.e.
$150,000 City Council: Appropriated $110,000 the SB 1090 funds for the COVID Resiliency Grant Program,
including the Business Assistance Grant Program and administration fees to the South County Chambers of
Commerce, and an appropriation of $40,000 from the SB 1090 funds for the Retraining Scholarship Program,
to be administered by the South County Chambers of Commerce in Partnership with SLO Partners, including
administration fees. Approved on 03/09/2021 Council meeting, item 10.a.
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.
Item 8.e. - Page 15
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Item 8.e. - Page 16