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CC 2024-02-27_09b FY 2023-24 Second Quarter Status ReportItem 9.b. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director SUBJECT: Consideration of Fiscal Year 2023-24 Second Quarter Status Report and Request to Approve Six Budget Adjustment Requests DATE: February 27, 2024 SUMMARY OF ACTION: Consider, receive, and file the Fiscal Year (FY) 2023-24 Second Quarter Financial Status Report (the “Second Quarter Report”) and approve six (6) Budget Adjustment Requests. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Preparation of the Second Quarter Report requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the second quarter, FY 2023-24 revenues for the Consolidated General Fund were $8.6 million, or one percent (1%), below than the Budget Target (“Target”). Actual Expenditures were $12.4 million, and below the Budget Target by approximately $1.3 million, or four percent (4%). The City Council is being asked to approve six budget adjustments. The overall impact to the budget is an increase in Consolidated General Fund expenditures of $185,310, COPS Fund expenditures of $25,000, Water Fund expenditures of $13,975, and Sewer Fund expenditures of $20,000, as reflected in the following table 1: Table 1 – Second Quarter Budget Adjustment Request RECOMMENDATION: Consider, receive, and file the FY 2023-24 Second Quarter Report; and approve six Budget Adjustment Requests. Request Revenue Expenditure General Fund COPS Fund Impact Water Fund Impact Sewer Fund Building Contractual Services 123,700 185,000 23,000 - - - City Attorney Contract Costs - 150,000 150,000 - - - Escribe Webcasting Module - 12,310 12,310 - - - Police Equipment - 25,000 - 25,000 - - Central Coast Blue (CCB) Operating Costs - 13,975 - - 13,975 - Lift Station #1 Pump Repair - 20,000 - - - 20,000 Totals 123,700 406,285 185,310 25,000 13,975 20,000 Page 21 of 299 Item 9.b. City Council Consideration of Fiscal Year 2023-24 Second Quarter Status Report and Request to Approve Six Budget Adjustment Requests February 27, 2024 Page 2 BACKGROUND: 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 Second Quarter Report is the second of four financial performance reports that staff will present to Council during the 2023-24 fiscal year. The purpose of the FY 2023-24 Second Quarter Report is to:  Compare second quarter revenues received and expenditures incurred to the second 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 second quarter information including headcount statistics, status of Capital Improvement Projects, and requests for City Council’s approval of Budget Adjustment Requests that have not previously been approved. The City’s actual second quarter financial results will be compared to both the prior year’s second quarter and the budgeted Target. The Target for expenditures is calculated as one half (50%) of the FY 2023-24 Budget and represents the 6-month period from July 2023 through December 2023. The Non-Departmental Annual Payments line has a Target of the full budget. The Measure O-06 Sales & Use Tax CIP allocation line has a Target of zero as the allocation is completed in the fourth quarter . This approach decreases the expenditure Target from 50% to 42% for the second quarter. The Target for revenues does not use the 50% Target but a Target of 35.4% that more accurately reflects the anticipated revenues to be received in the second quarter of the FY. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter. The Second Quarter Report also includes a section regarding Budget Adjustments Requests. This section summarizes individual budget adjustments approved by the City Council during the second quarter, as well as administrative adjustments completed by City staff. Additionally, this section of the report includes new Budget Adjustment Requests not otherwise addressed in previous City Council agenda items. Approval will enable the City to complete important work items and meet the needs of the community. Page 22 of 299 Item 9.b. City Council Consideration of Fiscal Year 2023-24 Second Quarter Status Report and Request to Approve Six Budget Adjustment Requests February 27, 2024 Page 3 ANALYSIS OF ISSUES: Second Quarter (Q2) Revenue and Expenditures Compared to Prior Year Table 2 - Current Year Q2 Actuals Compared to Prior Year Q2 Actuals The Consolidated General Fund shown in Table 2 is the primary operating fund of the City and accounts for resources and services traditionally associated with government. The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Local Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report. The Local Sales Tax Fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O-06 included advisory measures when passed, providing direction on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and repor ting of this information, the City has accounted for this fund in a separate account. This report presents information for the Consolidated General Fund that includes Local Sales Tax Fund Measure O-06 revenues and expenditures. Consolidated General Fund revenues at the second quarter of this year were approximately $214,439 million higher than the second quarter of the prior year. Expenditures were approximately $1.2 million higher at the end of the second quarter of the current fiscal year versus the second quarter of the prior year. A more thorough explanation of second quarter variances is set forth in the attached financial report. The following is a summary of the second quarter variances between the two fiscal years. Revenue (approximately $214,439 higher) The majority of the $214,439 variance between the second quarter of this year and the prior second quarter is related to the increase in User Fees received in the second quarter of FY 2023-24 when compared to the second quarter of FY 2022-23. Second Quarter FY 2023-24 Second Quarter FY 2022-23 Variance Revenue 8,612,371 8,397,932 214,439 Expenditures 12,350,666 11,106,641 1,244,025 Page 23 of 299 Item 9.b. City Council Consideration of Fiscal Year 2023-24 Second Quarter Status Report and Request to Approve Six Budget Adjustment Requests February 27, 2024 Page 4 Expenditures (approximately $1.2 million higher) Second quarter expenditures compared to the prior year were higher by $1.2 million. The majority of the variance between the two fiscal quarters is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation. Second Quarter (Q2) Revenue and Expenditures Compared to Target Table 3 - Current Year Q2 Actuals Compared to Target Table 3 above compares second quarter actual results to the budgeted Target. Second Quarter actual revenue was short of the Target by $151,113. Second Quarter actual expenditures were short of the Target by approximately $1.3 million. The following is a summary of the second quarter revenue and expenditure variances compared to the budgeted Target. A more thorough explanation of second quarter variances is set forth in the attached financial report. Revenue ($151,113 lower) The actual second quarter Consolidated General Fund revenue shortfall compared to the Target is not unusual. Revenue realization is typically low in the second 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 second property tax bill at the end of September or early October, with a due date of November 1st. Most of the property tax related to the second installment was received in December, 2023. The second installment is due on April 1st and will be reflected in the fourth quarter report. The revenue Target includes the equivalent of four months of property tax revenue, but actuals were still lower than this conservative revenue assumption by $235,374. License and permit revenue is above the Target by $61,850. User fee reven ue is above the Target by $212,094. Planning revenue exceeded the Target by $31,774. The Target is based on 50% or 6 months of the fiscal year’s total budget. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand. FY 2023-24 Second Quarter FY 2023-24 Second Quarter Variance Revenue 8,763,486 8,612,372 (151,113) Expenditures 13,683,153 12,350,666 (1,332,487) Page 24 of 299 Item 9.b. City Council Consideration of Fiscal Year 2023-24 Second Quarter Status Report and Request to Approve Six Budget Adjustment Requests February 27, 2024 Page 5 Other revenue is made up of Business License Tax, Fines, Intergovernmental Income, Other Charges for Service, and Other Revenues. The actual revenue in this category is lower than the Target by $190,937. The largest variance in this category is related to three revenue accounts. The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the General Plan Update. Once these funds are spent for this project, the revenue will be recognized at that time. Expenditures (approximately $1.3 million lower) Actual second quarter expenditures were $1,332,487 under the Target. Some of the more significant savings occurred in Police, Community Development, Public Works, Administrative Services, and City Administration Departments. The Second Quarter Report provided in Attachment 1 includes greater detail regarding the causes for the expenditure variances in these departments. Section 5 of the Second Quarter Report includes a new update on the Goal Status Reports to Council, that includes City’s progress towards completing Major City Goals and City’s Capital Improvement Plan. This information is provided to keep the Council apprised of the status of the Goal Status Reports and includes progress towards completing Major City Goals and Capital Improvement Plan. Budget Adjustments Staff identified six budget adjustments that are requested as described in more detail below:  Community Development: Appropriate $23,000 from the General Fund Balance to account for the increased costs related to Building Contractual Services. Recent development and building permit activity has increased and a demand for plan check services has resulted. In order to help decrease the processing time to return building permit plan checks to customers, additional contractual services totaling $180,000 is requested. These increases are expected to be offset by a conservative increase to fee revenues totaling $123,700. Additionally, it is recommended to reallocate the remaining $38,300 of budgeted expenditures within the Building Division salary savings to cover a portion of this increased costs since the contractual firm has been providing this service until the new Building Permit technician began with the City in January 2024.  City Administration: Appropriate $150,000 from the General Fund Balance to account for the increased costs related to the City Attorney contract. Best, Best, and Krieger continues to provide exceptional service to the City and has increased the amount of hours used by approximately 50 hours per month to a monthly average of approximately 165 hours. This increased service level was not reflected in the original budget estimates for FY 2023 -24, but has been seen as necessary to update some of the City’s practices. Opportunities to reduce legal costs in the Page 25 of 299 Item 9.b. City Council Consideration of Fiscal Year 2023-24 Second Quarter Status Report and Request to Approve Six Budget Adjustment Requests February 27, 2024 Page 6 future are being identified. City staff will incorporate a more accurate estimate in the Mid-Cycle FY 2024-25 budget update at a future Council meeting.  Legislative and Information Services: Appropriate $12,310 from the General Fund Balance to add the Escribe Webcasting Module to provide video indexing to the City Council meetings and support the automation of meetings.  COPS Fund: Appropriate $25,000 from the State COPS Block Grant Fund to purchase license plate readers, evidence drying rack, handheld laser speed gun, and a drone. All pieces of equipment are eligible for COPS Grant Fund use but the special revenue fund did not incorporate these items into this budget.  Water Fund: Appropriate $13,975 from the Water Enterprise Fund Balance to fund the City’s share of the Central Coast Blue (CCB). This increase is related to the CCB Mid-year Budget request presented to the CCB Board on Monday, February 5, 2024, due to substantive work activities related to the start-up of the Authority, including but not limited to legal and financial advisor services.  Sewer Fund: Appropriate $20,000 from the Sewer Enterprise Fund Balance to replace one of the pumps at Lift Station # 1. The pumps at Lift Station # 1 are the City’s largest sewage pumps and pump around 250,000 gallons of raw sewage per day for it to flow via gravity in the collection system to the plant in Oceano. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Receive and file the Fiscal Year 2023-24 Second Quarter Financial Status Report and approve six Budget Adjustment Requests; 2. Provide other direction to staff regarding the FY 2023-24 Second Quarter Financial Status Report and the six Budget Adjustment Requests; 3. Receive and file the FY 2023-24 Second Quarter Financial Status Report and do not approve the Budget Adjustment Requests and provide further direction to staff ; or 4. Provide other direction to staff. ADVANTAGES: The financial report presents an updated review of the City’s financial performance in the second quarter of FY 2023-24. Approval of the requested budget adjustments will enable staff to continue providing high quality services to the organization and to the public. DISADVANTAGES: No disadvantages have been identified at this time. Page 26 of 299 Item 9.b. City Council Consideration of Fiscal Year 2023-24 Second Quarter Status Report and Request to Approve Six Budget Adjustment Requests February 27, 2024 Page 7 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. ATTACHMENTS: 1. Fiscal Year 2023-24 Second Quarter Financial Status Report Page 27 of 299 ATTACHMENT 1 Page 1 ENSURING FISCAL STABILITY: In Fall 2020, the City Council established a goal to ensure financial stability for the organization throughout the planning, budgeting, and expenditure process, including preparation and presentation of year-end and quarterly financial reports. City of Arroyo Grande Fiscal Year 2023-24 Second Quarter Financial Status Report INTRODUCTION The following report is an overview of the City’s fiscal position at the end of the second quarter for Fiscal Year (FY) 2023-24. 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 second quarter of the fiscal year and compare actual results to the prior year and the budgeted Target, to determine the City’s performance. The second quarter timeframe is July 1 through December 31, 2023. The financial report is organized in the following sections: Section 1 – an overview of City’s financial position at the end of the second quarter of FY 2023-24. This includes a comparison of second quarter results between the current and prior year. In addition, second quarter results will be compared to the budgeted Target. 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 second 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 second quarter along with their final costs. Section 4 – a listing of Budget Amendment Requests previously approved by Council and completed in the second quarter of the fiscal year, as well as a list of additional budget adjustments that are being presented to Council along with the second quarter report for consideration and approval. Section 5 – an update on the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan. Page 28 of 299 ATTACHMENT 1 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 Consolidated General Fund but will also report on all Governmental Funds. Consolidated General Fund – The Consolidated General Fund is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Local Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report (ACFR). The Local Sales Tax Fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O-06 included advisory measures when passed providing direction on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and reporting of this information, the City has accounted for this fund in a separate account. This report will present information for the Consolidated General Fund that includes Local Sales Tax Fund Measure O-06 revenues and expenditures. 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 three 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 second 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 third is the San Luis Obispo Tourism Marketing District Page 29 of 299 ATTACHMENT 1 Page 3 (SLOTMD) Fund, which accounts for the receipt and remittance of assessments collected from lodging operators on behalf of the SLOTMD. The following chart below shows an overview of the City’s fund structure. CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR Table 1 below reflects revenue and expenditure patterns through the end of the second quarter of FY 2023-24 and compares the current quarter results against the prior year’s results for all Governmental Funds as well as the City’s Consolidated General Fund. The totals in the table reflect the second quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget. Table 1 The following discussion focuses on both the City’s Governmental Funds and the Consolidated General Fund and provides a comparison between second quarter results for the current and prior year for both revenue and expenditures. Governmental Funds and Consolidated General Fund revenue and expenditures for the second quarter of this year are generally on Target with prior year. The Governmental Funds category includes Special Revenue Funds, Debt Service Funds, as well as the Consolidated General Fund. 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 San Luis Obispo Tourism Police Department Park Development Water Facility Marketing District Recreation Services Park Improvement Lopez Water (SLOTMD) Public Works Recreation Community Center Local Sales Tax Fund 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 American Rescue Plan Act (ARPA) State COPS Block Grant Agency FundsSpecial Revenue FundsFIDUCIARY FUNDSGOVERNMENTAL FUNDS ALL FUNDS PROPRIETORY FUNDS General FundDebt Service FundsEnterprise FundsPrivate Purpose FundSecond Quarter FY 2023-24 Second Quarter FY 2022-23 Variance Revenue 13,099,729$ 13,304,501$ (204,771)$ Expenditures 13,413,321$ 12,102,789$ 1,310,533$ Second Quarter FY 2023-24 Second Quarter FY 2022-23 Variance Revenue 8,612,371$ 7,426,224$ 1,186,147$ Expenditures 12,350,666$ 10,691,410$ 1,659,256$ Governmental Funds Consolidated General Fund Page 30 of 299 ATTACHMENT 1 Page 4 Governmental Funds – At the end of the second quarter of FY 2023-24, Governmental Fund revenue was -1.5%, or $204,771 lower than prior year, and expenditures were higher by 10.8% or $1.3 million. The majority of the revenue and expenditure variances in Governmental Funds were attributed to variances within the Consolidated General Fund and the American Rescue Plan Act (ARPA) Fund, which is separate from the Consolidated General Fund and not otherwise addressed in this report. The Governmental Funds category includes the Consolidated General Fund as well as other Special Revenue Funds. The Consolidated General Fund and ARPA Fund variances are explained as follows: Consolidated General Fund - The Consolidated General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. Consolidated General Fund revenue in the second quarter was 16%, or $1.2 million higher than the second quarter of the prior year. Expenditures increased by 15.5%, or $1.7 million higher than the second quarter of the prior year. The majority of the variance between the two fiscal years is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation. ARPA Fund – The ARPA Fund was created to help separately track funding provided pursuant to the American Rescue Plan Act. This Act is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To date the City has received the full amount allocated totaling $4,300,241. In FY 2021-22 expenditures incurred totaled $604,246. In FY 2022-23 expenditures incurred totaled $745,837 the remaining $2,950,158 is currently recognized as revenue in FY 2023-24. CONSOLIDATED GENERAL FUND IMPACTS The following discussion focuses on the City’s Consolidated General Fund performance. Chart 1 starts off with a simple overview of Consolidated General Fund performance compared to the Target. Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2023-24 second quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of Consolidated General Fund revenue is included, which compares second quarter actual results to the Target (Table 4). Using the Target as a comparator against actual results provides a simplified method to evaluate performance for each quarter. The Target for revenues does not use the 50% Target but a Target of 35.4% that more accurately reflects the anticipated revenues to be received in the second quarter of the fiscal year. Revenue realization is typically low at the end of the second quarter of the fiscal year due to the timing of receipt of major tax revenues, the time lag involved in billing cycles, and the receipt of reimbursements. The City’s actual second quarter financial results will be compared to both the prior year’s second quarter and the budgeted Target. The Target for expenditures is calculated as one-half (50%) of the FY 2023-24 Budget and represents the 6-month period from July 2023 through December 2023, except for the Non-Departmental Annual Payments line that has a Target of the full budget and the Measure O-06 Sales & Use Tax CIP allocation line that has a Target of zero as the allocation is completed in the fourth quarter. This approach decreased the Target from 50% to 42% for the second quarter. Page 31 of 299 ATTACHMENT 1 Page 5 Chart 1 Chart 1 shows a simple comparison of actual second quarter revenue and expenditures to the Target. The actual second quarter Consolidated General Fund revenue is less than the budgeted Target by $151,113, which is not unusual since revenue realization is typically lower than the Target through the second quarter due to the time lag involved in billing cycles and the receipt of reimbursements. Likewise, actual expenditures through second quarter totaled $12.4 million, or 38% of the full year’s Budget, and are under the Target by $1.3 million. A more detailed discussion on Consolidated General Fund revenue and expenditure variances is included later in this report. Table 2 Table 2 reflects major expenditure cost categories within the Consolidated General Fund. This chart is intended to explain where the City’s resources were spent during the second quarter. Within the total expenditures of $7 million, 56.8% of the City’s costs are associated with personnel, 38.8% with operating and maintenance, 2.4% for the City’s debt service, 0.5% for Capital Outlay, and 1.6% with transfers to other funds. FY 2023-24 % of Q2 Actuals Actuals Personnel Costs 7,014,023$ 56.8% Operating Costs 4,786,024 38.8% Debt Service 299,523 2.4% Capital Outlay 57,498 0.5% Transfers Out 193,597 1.6% Total 12,350,665$ Expenditure Category Page 32 of 299 ATTACHMENT 1 Page 6 Table 3 reflects the second quarter status of all Consolidated 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 – Consolidated General Fund Expenditures by Department Overall, second quarter expenditures were $1.6 million under the Target. The majority of City departments were under their spending Targets, except for Recreation Services. Some of the more significant savings occurred in the Police, Community Development, Public Works, Administrative Services, and City Administration Departments. 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 2023-24 Police Services includes the functions of Administration, Patrol Services, Support Services and the Office of Traffic Safety (OTS) Grant for Traffic/DUI Enforcement Program. For simplicity, Police Services will be analyzed in total rather than by individual divisions. Some of the more significant variances include:  The Police Department currently has two vacancies and one medical leave, resulting in labor savings of approximately $190,000.  The contract with the County Sheriff Department for dispatch services is paid semiannually in the months of January and June. Payments for these services will not be made until the third and fourth quarters, resulting in a second quarter favorable variance to the Target of $248,500. City Administration 1,601,100$ 800,550$ 677,636$ 122,914$ 8% Legislative & Information Services 449,460 224,730 186,393 38,337 9% Measure O-06 Sales & Use Tax 1,269,800 634,900 624,883 10,017 1% Measure O-06 CIP Allocation 7,715,691 - - - 0% Administration Services 5,284,902 2,642,451 2,497,794 144,657 3% Non-Departmental Annual Payments 2,836,525 2,836,525 2,755,499 81,026 3% Community Development 1,850,122 925,061 724,868 200,193 11% Police Department 6,905,599 3,452,800 3,012,668 440,132 6% Recreation Services 901,370 450,685 485,983 (35,298) -4% Public Works 3,430,898 1,715,449 1,384,943 330,506 10% TOTAL EXPEDITURES 32,245,467 13,683,153 12,350,666 1,332,487 4% % Fav/(Unfav) Consolidated General Fund Department Variances - Second Quarter Consolidated General Fund Department 2023-24 Adjusted 2023-24 Q2 Actuals Dollar Fav/(Unfav) 2023-24 Q2 Target Department: Police Services Division: Various (4201, 4203, 4204, 4209) Issue: Overall savings in salaries and benefits and contractual services Impact to Consolidated General Fund: $440,132 savings Page 33 of 299 ATTACHMENT 1 Page 7 The Community Development Department includes the functions of Planning 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. Some of the more significant variances include:  The vacancy of the Building Permit Technician position resulted in a portion of the divisions overall labor savings totaling approximately $65,000.  Minimal contractual services for the Planning Division were incurred through second quarter resulting in $130,990 of favorability to the Target. The following table will summarize where these savings occurred: The Public Works Department includes the functions of Government Buildings, Engineering, Auto Shop, Administration, Park Maintenance, and Soto Sports Complex Divisions within the Consolidated General Fund. The majority of the favorable variance in this department can be attributed to salary savings. For simplicity, Public Works will be analyzed in total rather than by individual divisions. Some of the more significant variances include:  The Public Works Administration Division had a vacant Public Works Director/Assistant City Manager position and had a vacant Assistant Capital Projects Manager the majority of the second quarter resulting in labor savings of approximately $186,100.  The Parks Division has $50,000 for Tree removal support at $50,000 for Open Space Fuel Management that will be completed in the third and fourth quarter of this fiscal year.  The Parks Division has savings of approximately $25,000 related to the new mower allocated in the first quarter financial status report that will be received in the third quarter. This fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. The majority of the favorable variance in this department can be attributed to transfers and lower spending in debt service. Some of the more significant variances include:  The variance for Measure O-06 Sales & Use Tax Fund through the end of the second quarter results from Transfers Out to Capital Improvement Program (CIP) Projects; the July through December allocation towards projects is completed once a project is finished or at the end of the fiscal year. This is resulting in a second quarter favorable variance to the Target of $115,000. Budget Target Expenditures Variance 418,182 209,091 93,337 115,755 25,000 12,500 - 12,500 15,000 7,500 4,765 2,735 458,182 229,091 98,102 130,990 On-Call Planning Services and Misc. Planning Studies On-Call Environmental Review Services Comprehensive General Plan Update Planning Contractual Services Department: Community Development Division: Various (4130, 4212) Issue: Overall savings in salaries and contractual services Impact to Consolidated General Fund: $200,193 savings Department: Public Works Division: Various (4213, 4301, 4305, 4307, 4420, 4430) Issue: Overall savings in salaries and contractual services Impact to Consolidated General Fund: $330,506 savings Department: Administrative Services Division: Various (4120, 4140) Issue: Overall savings in Transfers Out to CIP Projects and debt service Impact to Consolidated General Fund: $144,657 savings Page 34 of 299 ATTACHMENT 1 Page 8  The Administrative Services Division has $27,200 for a carryover to complete the Development Impact Fee Nexus Study in the third quarter of the fiscal year. The City Administration Department includes the functions of City Council, City Attorney, Retirees, City Manager, and Human Resources Divisions within the Consolidated General Fund. The majority of the favorable variance in this department can be attributed to lower spending in contractual services. Some of the more significant variances include:  The Legislative & Information Services Division had a vacant Deputy City Clerk/Communications Coordinator position for a portion of the second quarter resulting in labor savings of approximately $18,000.  Minimal contractual services for the City Manager Division were incurred through second quarter resulting in $50,500 of favorability to the Target related to the Ballot Measure and Polling Consultants continuing work in the third quarter and the Economic Development Consultant budgeted to begin in the third quarter.  The City Council Division has a variance of $37,500 related to the timing of the Community Services Grant program and $10,750 related to the Retraining Scholarship Program being completed in the second half of the fiscal year. KEY REVENUE VARIANCES BY ACCOUNT FOR THE SECOND QUARTER Table 4 – Consolidated General Fund Revenue As reflected in Table 4, second quarter actual revenue was short of the Target by $151,113. This table uses a Target of 35.4% that more accurately reflects the anticipated revenues to be received in the second quarter of the fiscal year. Revenue realization is typically low at the end of the second quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. A more Property Tax 6,327,486$ 2,109,162$ 1,873,788$ (235,374)$ -4% Sales Tax 5,268,158 1,756,053 1,693,861 (62,192) -1% Measure O-06 Sales & Use Tax 2,962,000 987,333 1,179,264 191,930 6% Transient Occ. Tax 1,545,000 643,750 654,766 11,016 1% Property Tax in Lieu of VLF 2,001,300 - - - 0% Franchise Fees 795,600 331,500 250,974 (80,526) -10% License & Permit Fees 455,800 227,900 289,750 61,850 14% User Fees 521,500 260,750 472,844 212,094 41% Planning Fees 371,500 185,750 217,524 31,774 9% Recreation Fees 415,867 207,934 296,713 88,780 21% Transfers In 3,114,066 1,557,033 1,377,504 (179,529) -6% Other Revenue 992,640 496,320 305,383 (190,937) -19% TOTAL 24,770,917 8,763,486$ 8,612,372 (151,113) -1% Consolidated General Fund Revenue Variances - Second Quarter REVENUE BY CATEGORY FY 2023-24 Budget FY 2023-24 Q2 Actuals Dollar (Unfav)/Fav FY 2023-24 Q2 Target % Fav/(Unfav) Department: City Administration Division: Various (4001, 4002, 4003, 4099, 4101, 4110) Issue: Overall savings in contractual services Impact to Consolidated General Fund: $122,914 savings Page 35 of 299 ATTACHMENT 1 Page 9 detailed discussion is included below to help explain actual revenue variances through the second quarter 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 w as received in December 2023. The second property tax bill installment is received in April 2024 and will be included in the fourth quarter report. Property tax typically represents around 26% of the City’s annual revenue. The Target is based on four month of Property Tax revenue. Actual revenue received in this category was lower than the Target. Sales Tax and Measure O-06 Sales & Use Tax – Sales tax and Measure O-06 Sales & Use Tax realization through second quarter is on track. Actual sales tax revenue received through second quarter was $1.7 million and Measure O-06 Sales & Use Tax revenue received through second quarter was $1.2 million which represents four month of payments (July-October). The Target is also based on four months of revenue, taking into account the timing of anticipated payments. Transient Occupancy Tax (TOT) – TOT revenue is reflecting an $11,016 favorable variance to the Target. The Target and actual TOT revenue represents only five 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. 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 Target for this revenue is zero in the second quarter. Franchise Fees – Only five months of Waste Water Connection franchise fees were received through second quarter. In addition, Charter Communications franchise fees earned in the second quarter will not be paid and received until the third quarter. In light of the timing of payments, the Target is based on 5 months of revenue. Without the Charter communications franchise fee receipts, the actual revenue at the end of the second quarter is lower than the Target by $80,526. License & Permit Fees, User Fees, and Planning Fees – License and permit revenue is above the Target by $61,850. User fee revenue is above the Target by $212,094. Planning revenue exceeded the Target by $31,774. The Target is based on 50% or 6 months of the fiscal year’s total budget. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand. Recreation Fees – Recreation revenue is above the Target by $88,780. The Target is based on 6 months of the fiscal year’s total budget. Other Revenues – This revenue category includes business license tax, fines, revenue from other government agencies, charges for services and any other revenues accounts received in the consolidated general fund. The largest variance in this category is related to three revenue accounts. Page 36 of 299 ATTACHMENT 1 Page 10 The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the General Plan Update. Once these funds are spent for this project, the revenue will be recognized at that time, resulting in a revenue shortfall to the Target of approximately $185,000. SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (2nd Quarter) None made during this quarter. FULL TIME EQUIVALENT (FTE) BY DEPARTMENT – PERMANENT STAFF ONLY The following table reflects FTE staffing by department. The table only includes permanent staff and does not include part-time or temporary staffing. While departments may hire part-time staff on a regular or seasonal basis, they are not included in the analysis below. EMPLOYEE VACANCY RATE The City’s employee vacancy rate at the end of the second quarter of FY 2023-24 was 5.1%. This equates to four (4) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of period. The costs associated with turnover includes the cost of advertising new positions, training, overtime, lowered productivity, and workload balance. Department Adopted Budget Headcount (FTE’s) Vacancies (2nd Qtr) % of Total Staffing Vacant Positions City Manager & Human Resources 3 1 4%City Manager Administrative Services 7 - 9% Community Development 10 1 13%Permit Tech. Legislative & Info Services 2 - 3% Police Services 29 2 37%Police Officer (2) Public Works 24 - 31% Recreation Services 3 - 4% Total 78 4 100% Page 37 of 299 ATTACHMENT 1 Page 11 SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS This information is provided to keep the Council apprised of the status of the City’s Capital Improvement Projects (CIP). Project Fund Budget FY 2023-24 Current Status Project Budget Expended Financial Management Software Sewer/Water/Sales Tax 413,000$ In Progress 22,038$ Women's Club Lighting Project Donations 821$ In Progress -$ Public Safety Video Cameras COPS/Sales Tax 1,125,000$ In Progress 850$ Replacement Generator at Fire Station 1 Other Gov Agencies/General/Sales Tax 610,714$ In Progress 11,210$ Arroyo Grande Creek Remediation Sales Tax, FEMA, CalOES 400,000$ In Progress 115,344$ Active Transportation Plan ATP/Sales Tax 250,000$ In Progress 16,302$ Fair Oaks Ave Active Transportation Improvements, Valley Road to Traffic Way Developer/Other Gov Agencies/Sales Tax 125,000$ In Progress -$ 191 Tally Ho Sales Tax 110,000$ In Progress 850$ Bridge Street Bridge Habitat Mitigation HBP 100,290$ In Progress 25,107$ Virginia Drive and S. Halcyon Road Curb Ramp and Sidewalk Improvement CDBG 56,749$ In Progress -$ Swinging Bridge Rehabilitation Sales Tax 1,100,292$ In Progress 11,386$ Arroyo Grande Creek Stabilization Sales Tax 6,300$ In Progress -$ Pavement Management Program USHA/General/SB1/Sale s Tax/General Fund 6,825,153$ In Progress 2,072,581$ Sidewalk Repairs and Improvements Sales Tax/CDBG 586,644$ In Progress 57,950$ Traffic Way Bridge Replacement HBP/Sales Tax 1,165,593$ In Progress 59,327$ Trenchless Sewer Rehabilitation -El Camino Real to West Branch St.ARPA 282,000$ In Progress 4,400$ Lift Station 3 FEMA/CalOES/Sales Tax 850,000$ In Progress 21,141$ Phased Mains Replacement - South Halcyon Road, Cornwall Street to Fair Oaks Avenue Water Facility/ARPA 1,535,892$ In Progress 48,718$ Phased Main Replacement - Highway 101 Crossing Upgrade, El Camino Real to West Branch Street ARPA/Water Fund 335000 In Progress 623,990$ Public Works Office Space Remodel Sales Tax 100,000$ Not Started -$ City Hall Front Door ADA (CDBG)CDBG 53,341$ Not Started -$ Fire Station 1 Apparatus Bay Doors Sales Tax 115,000$ Not Started -$ Recreation Services / Community Center Building Sales Tax 44,745$ Not Started -$ Halcyon Road Complete Streets HSIP/RSHA/USHA/Safe Routes to School/General/Sales Tax/ATP 1,304,000$ Not Started -$ Water Well #11 Facilities Water Availability 42,771$ Not Started -$ Galvanized Service Replacements Water 63,655$ Not Started -$ Page 38 of 299 ATTACHMENT 1 Page 12 SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS Administrative and Previously-Approved Second Quarter Budget Adjustments The following second quarter budget adjustments were previously approved by Council or are classified as administrative and not requiring Council approval. Administrative Services Department: Appropriated $13,800 from Public Access Television (PEG) special revenue fund to increase the Council Chamber Audio/Video System Project Upgrade budget. PEG special revenue fund accounts for fees collected from Charter Communications that are restricted for support of public, education, and government access programming and equipment. The Council Chamber Audio/Video system qualifies for PEG funding as a public and government access project. Approved on 11/28/2023 Council meeting, item 12.b. Administrative Services Department: Appropriated funds for 15 budget adjustments reviewed in the First Quarter Financial Status Report. The overall impact to the budget increased the Consolidated General Fund expenditures by $200,271, and Water Availability expenditures by $24,900, as reflected in the following table: Approved on 12/12/2023 Council meeting, item 9.c. Public Works Department: Appropriate $4,000 from the General Fund reserve to reflect salary adjustments with two existing City staff classifications: Public Works Manager and Citywide Fleet Coordinator. Approved on 12/12/2023 Council meeting, item 9.e. Request Revenue Expenditure General Fund Water Fund Impact Water Availability Fund Impact Carryover OTS Grant for Traffic/DUI Enforcement 22,824 22,824 - - - Carryover Retraining Scholarship Program 21,500 21,500 - - - Carryover F250 Replacement Public Works Truck - 78,433 78,433 - - Carryover User Fees & DIF Contractual Services - 27,200 27,200 - - Carryover Cash for Grass Program - 24,900 - - 24,900 CDBG Grant increase 7,958 7,958 - - - Reallocate Vehicle Replacement Funding towards Mower - 50,000 - - - Reallocate Salary Savings to Contractual Services for CIP - 60,000 - - - Tree Removal Support - 50,000 50,000 - - Increased need to fill Potholes - 10,000 10,000 - - Village Sign at Traffic Way & Branch - 15,000 15,000 - - Community Development Intern - 10,000 - - - Central Coast Blue (CCB) Operating Costs - 28,971 - 28,971 - Phased Main Replacement at Cornwall Avenue, from Rena to El Camino Real (ECR)- 171,300 - 171,300 - Totals 52,282 578,086 180,633 200,271 24,900 Page 39 of 299 ATTACHMENT 1 Page 13 Public Works Department: Appropriate $59,400 from the General Fund reserve to provide street sweeping services for the remaining six months of the fiscal year with the new street sweeping contract. Approved on 12/12/2023 Council meeting, item 9.i. Additional Requested Second Quarter Budget Adjustments In addition to the administrative budget adjustments for the CIP and the adjustments previously- approved by the City Council during the second quarter, six budget adjustments are proposed for approval along with the review and receipt of this report.  Community Development: Appropriate $23,000 from the General Fund Balance to account for the increased costs related to Building Contractual Services. Recent development and building permit activity has increased and a demand for plan check services has resulte d. In order to help decrease the processing time to return building permit plan checks to customers, additional contractual services totaling $180,000 is requested. These increases are expected to be offset by a conservative increase to fee revenues totaling $123,700. Additionally, it is recommended to reallocate the remaining $38,300 of budgeted expenditures within the Building Division salary savings to cover a portion of this increased costs since the contractual firm has been providing this service until the new Building Permit technician began with the City in January 2024.  City Administration: Appropriate $150,000 from the General Fund Balance to account for the increased costs related to the City Attorney contract. Best, Best, and Krieger continues to provide exceptional service to the City and has increased the amount of hours used by approximately 50 hours per month to a monthly average of approximately 165 hours. This increased service level was not reflected in the original budget estimates for FY 2023-24, but has been seen as necessary to update some of the City’s practices. Opportunities to reduce legal costs in the future are being identified. City staff will incorporate a more accurate estimate in the Mid-Cycle FY 2024-25 budget update at a future Council meeting.  Legislative and Information Services: Appropriate $12,310 from the General Fund Balance to add the Escribe Webcasting Module to provide video indexing to the City Council meetings and support the automation of meetings.  COPS Fund: Appropriate $25,000 from the State COPS Block Grant Fund to purchase license plate readers, evidence drying rack, handheld laser speed gun, and a drone. All pieces of equipment are eligible for COPS Grant Fund use but the special revenue fund did not incorporate these items into this budget.  Water Fund: Appropriate $13,975 from the Water Enterprise Fund Balance to fund the City’s share of the Central Coast Blue (CCB). This increase is related to the CCB Mid-year Budget request presented to the CCB Board on Monday, February 5, 2024, due to substantive work activities related to the start-up of the Authority, including but not limited to legal and financial advisor services.  Sewer Fund: Appropriate $20,000 from the Sewer Enterprise Fund Balance to replace one of the pumps at Lift Station # 1. The pumps at Lift Station # 1 are the City’s largest sewage pumps and pump around 250,000 gallons of raw sewage per day for it to flow via gravity in the collection system to the plant in Oceano. Page 40 of 299 ATTACHMENT 1 Page 14 SECTION 5: UPDATE ON MAJOR CITY GOALS AND CAPITAL IMPROVEMENT PLAN This information is provided to keep the Council apprised of the status of the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan. These reports present updates and communications about the status of City projects, goals, and performance measures. The four major goals are: The following tables provide a breakdown of the Council Goal’s Work Plan by goal. Here is a key for purposes of defining each department. Funding Support a thriving community through fiscal responsibility, economic development efforts, and additional and alternative revenue streams. Fire Services Implement operational and fire and emergency service delivery improvements through the Five Cities Fire Authority, and complete the transition of services to Oceano due to its exit from the Authority. Infrastructure Invest in and complete critical infrastructure projects throughout the City through the strategic prioritization of projects based on available resources. General Plan Update Prioritize and complete major work efforts for the comprehensive General Plan update to provide a vision and framework for future development within the City. CMO City Manager's Office AS Administrative Services LIS Legislative and Information Services PD Police Department PW Public Works Rec Recreation Services Fire Five Cities Fire Authority CD Community Development Key Page 41 of 299 ATTACHMENT 1 Page 15 Goal Strategy Task/Action Carryover Action or New Responsible Department Anticipated to Start Completion Target Update Funding 1. 1 Economic Development 1.1a Evaluate Economic Development Management Services New CMO 1Q FY2023-24 2Q FY 2023-24 In Progress 1.1b Obtain Economic Development Management Services New CMO 3Q FY 2023-24 3Q FY 2023-24 Not started 1.1c Support Modifications to the AGTBID New CMO/CA/Rec/LIS In Progress 2Q FY 2023-24 Completed 1.1c.i. Transition Administration to City staff New CMO/Rec/PW In Progress 1Q FY 2023-24 Completed 1.1c.ii. Complete Modifications to AGTBID Bylaws and Advisory Board Structure New CMO/CA/LIS In Progress 2Q FY 2023-24 Completed 1.1d 400 W. Branch Disposition and Development Agreement New CMO/CA/CD In Progress 4Q FY 2023-24 In Progress 1.1e Complete Transition of Temporary Parklets to Permanent Parklets Carryover CD/PW In Progress 1Q FY2023-24 Completed 1.1f Develop 1-3 Special Events that drive visitation during shoulder and winter months and build destination awareness New Rec In Progress 4Q FY 2023-24 In Progress 1.2 Pursue Revenue Measure 1.2a Issue an RFP for a consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-24 Completed 1.2b Award contract with consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-24 Completed 1.2c Conduct public outreach to the community to communicate need for additional revenue, including facilitation of a Citizen Committee Carryover CMO/LIS 1Q FY2023-24 1Q FY 2024-25 In Progress 1.2d Bring Revenue ballot measure to Council for consideration Carryover CMO/AS/LIS 3Q FY 2023-24 4Q FY 2023-24 In Progress 1.3 Evaluate Potential to Enable Cannabis Businesses within City 1.3a Conduct study session with the City Council regarding potential cannabis ordinance Carryover CD/CA/CMO 3Q FY 2023-24 3Q FY 2023-24 Not started 1.3b Prepare and adopt cannabis ordinance, if directed by the City Council New CD/CA/CMO 3Q FY 2023-24 1Q FY 2024-25 Not started 1.3c Evaluate feasibility of a Cannabis Tax New CD/AS/CA/CMO 3Q FY 2023-24 1Q FY 2024-25 Not started Fire Services 2.1 Work with Regional Partners on Fire Services in 5 Cities 2.1a Pursue potential contract with the County to serve Oceano New Fire/CMO 3Q FY 2023-24 4Q FY 2023-24 In Progress 2.2 Funding for Fire Services 2.2a Consider including Public Safety in proposed Revenue measure New CMO/AS/LIS 3Q FY 2023-24 4Q FY 2023-24 In Progress Page 42 of 299 ATTACHMENT 1 Page 16 Goal Strategy Task/Action Carryover Action or New Responsible Department Anticipated to Start Completion Target Update Infrastructure 3.1 Pursue Alternative Funding Sources for Infrastructure Needs 3.1a Consider Community partnership for Mark M. Millis Community Center construction Carryover CMO/Rec/PW In progress 4Q FY 2023-24 In Progress 3.1b Include infrastructure in new Revenue Measure plans and outreach Carryover AS/CMO/LIS/ PW/CD 1Q FY 2023-24 4Q FY 2024-25 In Progress 3.1c Collect FEMA reimbursement for January - March 2023 storm damage New AS In progress 3Q FY2024-25 In Progress 3.1d Pursue Grant applications and administration for infrastructure projects Carryover PW/CD/AS In progress Ongoing In Progress 3.2 Work with Regional Partners on Infrastructure Projects 3.2a Support ongoing development and financing of Central Coast Blue project Carryover CMO/AS/PW In Progress Ongoing In Progress 3.2b NCMA Management Agreement Amendments New PW 3Q FY 2023-24 Ongoing In Progress 3.3 Prioritize Key Infrastructure Projects 3.3a Traffic Way Bridge Carryover CD/PW In progress 2Q FY 2025-26 In Progress 3.3a.i. Traffic Way Bridge Design Carryover CD/PW In progress 4 Q FY 2023-24 In Progress 3.3a.ii. Traffic Way Bridge ROW Carryover CD/PW 1Q FY 2023-24 3Q FY 2023-24 In Progress 3.3a.iii. Traffic Way Bridge Construction Carryover CD/PW 3Q FY 2024-25 2Q FY 2025-26 Not started 3.3b Swinging Bridge Rehabilitation Carryover CD/PW In progress 2Q FY 2024-25 In Progress 3.3b.i. Swinging Bridge Rehabilitation NEPA Carryover CD/PW In progress 3Q FY 2023-24 Completed 3.3bii Swinging Bridge Rehabilitation Bid for Construction Carryover CD/PW 3Q FY 2023-24 3Q FY 2023-24 Completed 3.3b.iii. Swinging Bridge Construction New CD/PW 4Q FY 2023-24 2Q FY 2024-25 In Progress Page 43 of 299 ATTACHMENT 1 Page 17 Goal Strategy Task/Action Carryover Action or New Responsible Department Anticipated to Start Completion Target Update 3.3c Halcyon Complete Streets New CD/PW Not started 3.3c.i. Halcyon Complete Streets Design acquisition New CD/PW 1Q FY 2024-25 1Q FY 2024-25 Not started 3.3c.ii. Halcyon Complete Streets ROW acquisition New CD/PW 1Q FY 2023-24 1Q FY 2024-25 In Progress 3.3c.iii. Halcyon Complete Streets Construction New CD/PW 1Q FY 2024-25 2Q FY 2025-26 Not started 3.3d ATP Development New CD/PW In Progress 3Q FY 2024-25 In Progress 3.3d.i. Award ATP Contract to Consultant New CD/PW 4Q FY 2022-23 4Q FY 2022-23 Completed 3.3d.ii. Final Approval of ATP by Council New CD/PW 3Q FY 2024-25 3Q FY 2024-25 Not started 3.3e 2022 Pavement Management Program Construction New CD/PW 1Q FY 2023-24 2Q FY 2023-24 In Progress 3.3f 2024 Pavement Management Program Design New CD/PW 2Q FY 2023-24 3Q FY 2023-24 Completed 3.3g 2024 Pavement Management Program Construction New CD/PW 4Q FY 2023-24 1Q FY 2024-25 In Progress 3.3h Community Safety Camera Network Carryover Police/CD In Progress 4Q FY 2024-25 In Progress 3.3i Replacement Generator at Station 1 New CD/PW/Fire 4Q FY 2022-23 4Q FY 2023-24 In Progress 3.3j Lift Station 3 New CD/PW 1Q FY 2023-24 1Q FY 2024-25 In Progress 3.3k AG Creek Remediation (Debris removal and bank stabilization)New CD/PW 4Q FY 2022-23 4Q FY 2023-24 In Progress 3.3l Concrete Repair Program New CD/PW 1Q FY 2024-25 4Q FY 2024-25 In Progress 3.3m Concept plan/design for new Mark M. Millis Community Center Building New CD/PW/Rec 1Q FY 2023-24 4Q FY 2023-24 In Progress 3.3n CMP Lining New CD/PW 1Q FY 2024-25 Ongoing In Progress Infrastructure (continued) Page 44 of 299 ATTACHMENT 1 Page 18 Goal Strategy Task/Action Carryover Action or New Responsible Department Anticipated to Start Completion Target Update 4.1 Public Outreach 4.1a Plan and Host a Kick-Off Meeting with Community New CD/LIS 1Q FY 2023-24 1Q FY 2023-24 Completed 4.2 Diversity Equity Iinclusivity Justice Lens 4.2a Management of DEIJ consultant New CD In Progress Ongoing In Progress 4.3 General Plan Elements New CD 2Q FY 2023-24 3Q FY 2024-25 Not started 4.4 Baseline Analysis of Existing and Future Business Needs 4.4a Survey Local Businesses Carryover Action CD 1Q FY 2023-24 4Q FY 2023-24 Not started 4.4b Conduct a Retail Market Analysis New CD 1Q FY 2023-24 4Q FY 2023-24 Not started 4.5 Climate Action Plan New CD 2Q FY 2023-24 3Q FY 2025-26 Not started 4.6 Code Update 4.6a Bring code changes to Planning Commission for approval New CD 3Q FY 2025-26 3Q FY 2025-26 Not started 4.6b Bring draft Ordinance of code revision update to Council New CD 4Q FY 2025-26 4Q FY 2025-26 Not started 4.7 EIR 4.7a Complete draft EIR New CD 1Q FY 2024-25 3Q FY 2024-25 Not started 4.7b Complete final EIR New CD 3Q FY 2024-25 4Q FY 2024-25 Not started 4.8 Objective Design Standards Carryover CD/CA 1Q FY 2023-24 1Q FY 2023-24 In Progress General Plan Update Page 45 of 299