CC 2024-10-08_09c FY 23-24 Year-End Financial Status ReportItem 9.c.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services
SUBJECT: Fiscal Year 2023-24 Year-End Financial Status Report
DATE: October 8, 2024
RECOMMENDATION:
Receive and file the Fiscal Year 2023-24 Year-End Financial Status Report.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Preparation of the Fiscal Year (FY) 2023-24 Year-End Financial Status Report (the “Year-
End Report”) requires staff time within the existing work plan and budget for the
Administrative Services Department. At year-end, FY 2023-24 revenues for the
Consolidated General Fund were $25.7 million, or three percent (3%), higher than the
Adjusted Budget. Actual Expenditures were $29.2 million, and below the Adjusted Budget
by approximately $3.4 million, or ten percent (10%).
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 Year-End Report is the fourth
and final financial performance report that staff will present to the City Council during the
2023-24 fiscal year. The purpose of the FY 2023-24 Year-End Report is to:
Compare year-end revenues received and expenditures incurred to the end of the
prior year and to Adjusted Budget 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 year-end information including headcount statistics, status of
Capital Improvement Projects, and completed Budget Adjustment Requests.
ANALYSIS OF ISSUES:
Year-End Revenue and Expenditures Compared to Prior Year
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Item 9.c.
City Council
Fiscal Year 2023-24 Year-End Financial Status Report
October 8, 2024
Page 2
Table 1. Current Year-End Actuals Compared to Prior Year-End Actuals
The Consolidated General Fund shown in Table 1 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 Measure O 2006 Sales Tax Fund, although the City’s
auditors traditionally combine this information in the Annual Comprehensive Financial
Report.
The Measure O 2006 Sales Tax Fund accounts for the revenues derived from Measure
O 2006, a local 1/2% sales tax approved by the City's voters in November 2006. Measure
O 2006 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 presents information for the Consolidated General Fund that includes
Measure O 2006 Tax Fund revenues and expenditures. Consolidated General Fund
revenues at the end of FY 2023-24 were approximately $234,636 higher than at the end
of FY 2022-23. Expenditures were approximately $6.1 million higher through the end of
this year compared to the prior year. A more thorough explanation of year -end variances
is set forth in the attached financial report (Attachment 1). The following is a summary of
the year-end variances between the two fiscal years.
Year-End Revenue and Expenditures Compared to Adjusted Budget
Table 2. Year-End Actuals Compared to Adjusted Budget
Year-End
FY 2023-24
Year-End
FY 2022-23 Variance
Revenue 25,734,266 25,499,631 234,635
Expenditures 29,196,236 23,065,400 6,130,836
FY 2023-24
Adjusted Budget
FY 2023-24
Year-End Actuals Variance
Revenue 24,894,617 25,734,266 839,649
Expenditures 32,554,477 29,196,236 (3,358,241)
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Item 9.c.
City Council
Fiscal Year 2023-24 Year-End Financial Status Report
October 8, 2024
Page 3
Table 2 above compares year-end actual results to the Adjusted Budget. FY 2023-24
Year-End actual revenue was above the Adjusted Budget by $839,650. Year-End actual
expenditures were lower than the Adjusted Budget by approximately $3.4 million. The
following is a summary of the year-end revenue and expenditure variances compared to
the Adjusted Budget. A more thorough explanation of year -end variances is set forth in
the attached financial report.
Revenue ($839,650 higher)
General Fund revenue for FY 2023-24 is more than the Adjusted Budget by $839,650.
The majority of the variance is related to increased Property Tax, Measure O-2006 Sales
Tax, User Fees, and Franchise Fees revenues that exceeded the Adjusted Budget. The
Year-End Report includes greater detail regarding the causes for the revenue variances.
Expenditures (approximately $3.4 million lower)
Actual expenditures were $3,358,241 lower than the Budget by 10%. All of the City’s
departments are under their spending targets. Some of the more significant savings
occurred in the Measure O 2006 Sales CIP Allocation, Administrative Services, Public
Works, Community Development, and Police Departments. The Year-End Report
includes greater detail regarding the causes for the expenditure variances in these
departments.
Section 5 of the Third Quarter Report includes a new update on the Goal Status Reports
to Council, that includes the City’s progress towards completin g Major City Goals and
Capital Improvement Plan. This information is provided to keep the City Council apprised
of the status of the Goal Status Reports and includes progress towards completing Major
City Goals and Capital Improvement Plan.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Receive and file the Fiscal Year 2023-24 Year-End Financial Status; or
2. Provide other direction to staff .
ADVANTAGES:
The financial report presents an updated review of the City’s financial performance in FY
2023-24.
DISADVANTAGES:
No disadvantages have been identified at this time.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
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Item 9.c.
City Council
Fiscal Year 2023-24 Year-End Financial Status Report
October 8, 2024
Page 4
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 Year-End Financial Status Report
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ATTACHMENT 1
Page 1
City of Arroyo Grande
Fiscal Year 2023-24
Year-End Financial Status Report
INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the 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
year-end and compare actual results to the prior year and the Adjusted Budget to determine the City’s
performance. The timeframe of this report is July 1, 2023 through June 30, 2024.
The financial report is organized in the following sections:
Section 1 – an overview of City’s financial position after the
end of FY 2023-24. 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 year 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 along with their final costs.
Section 4 – a listing of Budget Amendment Requests
previously approved by Council and completed in the
fourth quarter of the fiscal year.
Section 5 – an update on the Goal Status Reports to Council that includes progress towards completing
Major City Goals and Capital Improvement Plan.
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.
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ATTACHMENT 1
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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 Measure O 2006 Sales Tax Fund, although the City’s auditors
traditionally combine this information in the Annual Comprehensive Financial Report (ACFR). The
Measure O 2006 Sales Tax Fund accounts for the revenues derived from Measure O 2006, a local 1/2%
sales tax approved by the City's voters in November 2006. Measure O 2006 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 Measure O 2006
Sales Tax Fund 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 (SLOTMD) Fund, which accounts
for the receipt and remittance of assessments collected from lodging operators on behalf of the SLOTMD.
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ATTACHMENT 1
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The 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 of FY 2023-24 and compares results against the
FY 2022-23 results for all Governmental Funds as well as the City’s Consolidated General Fund. The totals
in the table reflect the year-end actuals for both revenue and expenditures.
Table 1
The following discussion focuses on both the City’s Governmental Funds and the Consolidated General
Fund and provides a comparison between FY 2023-24 and FY 2022-23 results for both revenue and
expenditures. Governmental Funds and Consolidated General Fund revenue and expenditures for FY
2023-24 are generally higher than the prior year. The Governmental Funds category includes Special
Revenue Funds, Debt Service Funds, as well as the Consolidated General Fund.
Governmental Funds – At the end of FY 2023-24, Governmental Fund revenue was – 3.5%, or $1
million higher than prior year, and expenditures were higher by 20.4% or $5.6 million.
The majority of the revenue and expenditure variances in Governmental Funds were attributed to
variances within the Consolidated General Fund and the American Rescue Plan Act (ARPA) Fund,
Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking
Administrative Services Public Access Television Sewer Facility Sanitation Distribution
Community Development Police Protection Impact Water San Luis Obispo Tourism
Police Department Park Development Water Facility Marketing District
Recreation Services Park Improvement Lopez Water (SLOTMD)
Public Works Recreation Community Center
Local Sales Tax Fund Grace Lane Assessment District
Parkside Assessment District
Street (Gas Tax)
Traffic Signalization
Traffic Circulation
Transportation Facility Impact
Transportation
In-Lieu Water Neutralization
In-Lieu Affordable Housing
Tourism Business Improvement Dist.
Water Availability
CDBG Grant Fund
American Rescue Plan Act (ARPA)
State COPS Block Grant Agency FundsSpecial Revenue FundsFIDUCIARY FUNDSGOVERNMENTAL FUNDS
ALL FUNDS
PROPRIETORY FUNDS
General FundDebt Service FundsEnterprise FundsPrivate Purpose FundYear-End
FY 2023-24
Year-End
FY 2022-23 Variance
Revenue 30,352,133$ 29,333,353$ 1,018,780$
Expenditures 33,047,468$ 27,439,298$ 5,608,170$
Year-End
FY 2023-24
Year-End
FY 2022-23 Variance
Revenue 25,734,267$ 25,499,631$ 234,636$
Expenditures 29,196,236$ 23,065,400$ 6,130,836$
Governmental Funds
Consolidated General Fund
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ATTACHMENT 1
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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 revenues through the end of FY 2023-24 were 1%, or $234,636 higher than the prior
year. Expenditures increased by 26.6%, or $6.1 million higher through the end of this year compared
to 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. In FY 2023-24,
expenditures incurred totaled $1,121,731. The remaining $1,828,427 is currently recognized as
revenue in FY 2024-25.
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 Adjusted Budget.
Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2023-24 actual
expenditures compared to the Adjusted Budget (Table 3). Lastly, a discussion of Consolidated General
Fund revenue is included, which compares actual results to the Adjusted Budget (Table 4).
Chart 1
Chart 1 shows a simple comparison
of actual revenue and
expenditures to the Adjusted
Budget. Consolidated General
Fund revenue exceeded the
Adjusted Budget by $839,649.
Property Tax, Measure O-2006
Sales Tax, User Fees, and Franchise
Fees revenues exceeded the
Adjusted Budget. The actual
expenditures totaled $29.2 million,
or 90% of the full year’s Budget,
and are under the budget by $3.4
million. A more detailed discussion on Consolidated General Fund revenue and expenditure variances is
included later in this report.
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ATTACHMENT 1
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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 fiscal year. Within the
total expenditures of $29.2 million, 43.8%
of the City’s costs are associated with
personnel, 34.2% with operating and
maintenance, 1.1% for the City’s debt
service, 0.5% for Capital Outlay, and 20.4% with transfers to other funds.
Table 3 reflects the year-end 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, the City was under the Adjusted Budget by 10%, or $3.4 million. The majority of City departments
were under spent, except for Administrative Services and Recreation Services. Some of the more
significant savings occurred in the Measure O 2006 Sales CIP Allocation, Administrative Services, Public
Works, Community Development, and Police Departments. A more detailed explanation of key
expenditure variances by individual department/division is provided below.
City Administration 1,751,100$ 1,731,651$ 19,449$ 1%
Legislative & Information Services 449,460 422,012 27,448 6%
Measure O 2006 Sales Tax Fund 1,269,800 1,234,861 34,939 3%
Measure O 2006 CIP Allocation 7,715,691 4,917,827 2,797,864 36%
Administration Services 5,297,212 5,810,091 (512,879) -10%
Non-Departmental Annual Payments 2,836,525 2,756,790 79,735 3%
Community Development 1,996,822 1,680,784 316,038 16%
Police Department 6,905,599 6,702,366 203,233 3%
Recreation Services 901,370 916,482 (15,112) -2%
Public Works 3,430,898 3,023,372 407,526 12%
TOTAL EXPEDITURES 32,554,477 29,196,236 3,358,241 10%
%
Fav/(Unfav)
Consolidated General Fund Department Variances - Year-End
Consolidated General Fund Department FY 2023-24
Adjusted Budget
FY 2023-24
Actuals
Dollar
Fav/(Unfav)
FY 2023-24 % of
Year-End Actuals Actuals
Personnel Costs 12,790,046$ 43.8%
Operating Costs 9,997,641 34.2%
Debt Service 310,018 1.1%
Capital Outlay 135,275 0.5%
Transfers Out 5,963,255 20.4%
Total 29,196,235$
Expenditure Category
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ATTACHMENT 1
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KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR
FISCAL YEAR 2023-24
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. This budget included
$7.7 million allocated to ongoing CIP projects. A large
amount of progress was made but with timing of project
completion there is a significant amount of savings that
will be carried over in FY 2024-25.
The Administrative Services Department includes the
City’s Fiscal and Information Technology functions, as
well as Non-Departmental expenditures. This budget
included a line item reflecting budgeted salary savings
for the entire Consolidated General Fund instead of
budgeting these savings within each specific
department. This creates an overage at year-end due to
the salary savings actually happening in specific departments and discussed there due to the fluctuation
of salary savings moving between different departments because of vacancies.
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. 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 first half of the fiscal
year. Additionally, one employee was on medical leave resulting in labor savings of approximately
$229,600.
The Parks Division has savings of approximately $160,000 related to the replacement of a bucket
truck that has not yet been purchased.
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 during the first half of the fiscal year
resulted in a portion of the Division’s overall labor savings totaling approximately $82,400.
Department: Measure O-06 Sales & Use Tax
Fund CIP Allocations
Division: Fund 218
Issue: Overall savings in Transfers Out to
CIP Projects and debt service
Impact to Consolidated General Fund:
$2,762,925 savings
Department: Administrative Services
Division: Various (4120, 4140, 4145)
Issue: Overall savings in Transfers Out to
CIP Projects and debt service
Impact to Consolidated General Fund:
$512,879 overage
Department: Public Works
Division: Various (4213, 4301, 4305, 4307,
4420, 4430)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$407,526 savings
Department: Community Development
Division: Various (4130, 4212)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$316,038 savings
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Contractual services for the Planning Division had savings of approximately $227,600 related to
the Comprehensive General Plan Update, this is an ongoing update that is anticipated to be
carried over in FY 2024-25.
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 has had vacancies throughout the fiscal year and one medical leave,
resulting in labor savings of approximately $107,700.
The Police Department administers the ABC Grant and OTS Traffic Enforcement program that
operate on the federal fiscal year from October 1, 2023, to September 30, 2024, these programs
had savings totaling $72,300 that is anticipated to be carried over in FY 2024-25.
KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER
Table 4 – Consolidated General Fund Revenue
As reflected in Table 4, actual revenue exceeded the Adjusted Budget by $839,649. Property Tax, Measure
O-2006 Sales Tax, User Fees, and Franchise Fees revenues are all showing positive results while Transfers
in and Other Revenue reflect an unfavorable variance. A more detailed discussion is included below to
help explain actual revenue variances.
Property Tax – The majority of the City’s property tax revenue comes from Secured Property Taxes.
Property tax revenues ended the year in a favorable position by $495,434, or 8% above the Adjusted
Budget. Property tax collected grew 4.8% over the previous fiscal year, as the housing market continues
to rise. Property tax represents 26.5% of the City’s annual revenue.
Property Tax 6,327,486$ 6,822,920$ 495,434$ 8%
Sales Tax 5,268,158 5,158,345 (109,813) -2%
Measure O-06 Sales & Use Tax 2,962,000 3,283,349 321,349 11%
Transient Occ. Tax 1,545,000 1,407,882 (137,118) -9%
Property Tax in Lieu of VLF 2,001,300 2,129,113 127,813 6%
Franchise Fees 795,600 960,744 165,144 21%
License & Permit Fees 579,500 549,661 (29,839) -5%
User Fees 521,500 916,310 394,810 76%
Planning Fees 371,500 485,561 114,061 31%
Recreation Fees 415,867 574,162 158,295 38%
Transfers In 3,114,066 2,755,008 (359,058) -12%
Other Revenue 992,640 691,211 (301,429) -30%
TOTAL 24,894,617 25,734,266 839,649 3%
% Fav/(Unfav)
Consolidated General Fund Revenue Variances - Year-End
REVENUE BY CATEGORY FY 2023-24
Adjusted Budget
FY 2023-24
Actuals
Dollar
(Unfav)/Fav
Department: Police Services
Division: Various (4201, 4203, 4204, 4209)
Issue: Overall savings in salaries and
benefits and contractual services
Impact to Consolidated General Fund:
$203,233 savings
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Sales Tax and Measure O 2006 Sales Tax Fund – Actual Sales tax is lower than anticipated, while Measure
O 2006 Sales Tax exceeded the Adjusted Budget by $321,349, or 11%. Certain business categories like
building and construction, online shopping, general consumer goods, fuel and service stations, and food
and drugs continued to show strong sales tax receipts and exceeded expectations.
Transient Occupancy Tax (TOT) – TOT revenue is reflecting a $137,118 unfavorable variance to the
Adjusted Budget. TOT revenues appear to have hit a steady rate of increase compared to the large
increase experienced in FY 2022-23.
Property Tax in Lieu of Vehicle License Fees (VLF) – Actual Property tax in lieu of VLF revenue exceeded
the Adjusted Budget by $127,813, or 6% above the Adjusted Budget.
Franchise Fees – The City received Franchise Fees from Charter Communication, Waste Connections,
College Towning, Southern California Gas, PG& E, and Phillips 66. Franchise Fee revenues ended the year
in a favorable position by $165,144, or 6% above the Adjusted Budget.
License & Permit Fees, User Fees, and Planning Fees – License and permit revenue is below the Adjusted
Budget by $29,839. Planning revenue exceeded the Adjusted Budget by $114,061. 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 Adjusted Budget by $158,295.
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 The expense
recovery for police vehicles revenue related to the sale of surplus Police Patrol vehicles has not taken
place since the new leased vehicles have not yet been received. This results in a revenue shortfall of
approximately $301,429. The revenue from other government agencies accounts for the SB 1090 funds
earmarked for use of the general plan update totaling $227,600 and Retraining Scholarship Program
totaling $21,500. Once these funds are spent for these projects, the revenue will be recognized at that
time. The remainder of the variance is related to the Expense Recovery budget for the sale of the Police
Fleet vehicles. The City has not yet sold these vehicles due to the long lead time of receiving the new fleet
vehicles.
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SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS
POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (Year-End)
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 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 the
period. The costs associated with turnover include the cost of advertising new positions, training,
overtime, lowered productivity, and workload balance.
Department Adopted Budget
Headcount (FTE’s)
Vacancies
(Year-End)
% of Total
Staffing Vacant Positions
City Manager & Human Resources 3 - 4%
Administrative Services 7 - 9%
Community Development 10 - 13%
Legislative & Info Services 2 - 3%
Police Services 29 3 37%Police Officer (3)
Public Works 24 1 31%Engineering Inspector
Recreation Services 3 - 4%
Total 78 4 100%
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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).
Project Fund
Budget FY
2023-24
Current
Status
Project Budget
Expended
191 Tally Ho Sales Tax 110,000$ Complete 86,826$
Lift Station 3
FEMA/CalOES/Sales
Tax 850,000$ Complete 67,475$
Financial Management Software Sewer/Water/Sales Tax 413,000$ In Progress 89,238$
Women's Club Lighting Project Donations 821$ In Progress -$
Public Safety Video Cameras COPS/Sales Tax 1,125,000$ In Progress 162,076$
Replacement Generator at Fire
Station 1
Other Gov
Agencies/General/Sales
Tax 610,714$ Complete 474,788$
Arroyo Grande Creek
Remediation
Sales Tax, FEMA,
CalOES 400,000$ In Progress 188,638$
Active Transportation Plan ATP/Sales Tax 250,000$ In Progress 105,783$
Bridge Street Bridge Habitat HBP 100,290$ In Progress 102,799$
Swinging Bridge Rehabilitation Sales Tax 1,100,292$ Complete 727,213$
Arroyo Grande Creek Sales Tax 6,300$ In Progress 21,299$
Pavement Management
Program
USHA/General/SB1/Sale
s Tax/General Fund 6,825,153$ In Progress 5,264,820$
Sidewalk Repairs and Sales Tax/CDBG 586,644$ In Progress 486,776$
Traffic Way Bridge Replacement HBP/Sales Tax 1,165,593$ In Progress 560,802$
Trenchless Sewer Rehabilitation -
El Camino Real to West Branch ARPA 282,000$ Complete 188,378$
Phased Mains Replacement -
South Halcyon Road, Cornwall
Street to Fair Oaks Avenue Water Facility/ARPA 785,892$ In Progress 705,531$
Phased Main Replacement -
Highway
101 Crossing Upgrade, El ARPA/Water Fund 335,000$ In Progress -$
Fire Station 1 Apparatus Bay
Doors Sales Tax 115,000$ In Progress -$
Galvanized Service Water 63,655$ In Progress -$
Fair Oaks Ave Active
Transportation Improvements,
Valley Road to Traffic Way
Developer/Other Gov
Agencies/Sales Tax 125,000$ Not started -$
Virginia Drive and S. Halcyon
Road Curb Ramp and Sidewalk CDBG 56,749$ Not Started -$
Public Works Office Space Sales Tax 100,000$ In Progress 1,006$
City Hall Front Door ADA CDBG 53,341$ Not Started -$
Recreation Services /
Community Center Building Sales Tax 44,745$ In Progress -$
Halcyon Road Complete Streets
HSIP/RSHA/USHA/Safe
Routes to
School/General/Sales
Tax/ATP 1,304,000$ In progress 2,764$
Water Well #11 Facilities Water Availability 42,771$ Not Started -$
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SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS
Administrative and Previously-Approved Year-End Budget Adjustments
The following year-end budget adjustments were previously approved by the City Council or are classified
as administrative and not requiring City Council approval.
Administrative Services Department: Appropriated funds for two budget adjustments reviewed in the
Third Quarter Financial Status Report. Reallocating funds for two CIP Projects:
$10,000 from the 2022 Pavement Management Program to the Corrugated Metal Pipe (CMP)
project this fiscal year will enable the City to capitalize on the presence of a contractor with video
equipment completing work on the sewer trenchless repair project to gather information
necessary for FY 2024-25 CMP lining scheduled for next fiscal year.
$291,200 from the Phased Main Replacement under Highway 101 to Crossing Upgrade project
that has not yet started to the other two Phased Main Replacement projects that are near
completion or expected to be completed in the ARPA deadline timeframe.
Approved at the May 14, 2024, City Council meeting, Item 9.c.
Administrative Services Department: Approved a budget adjustment request in the amount of $58,800 to
amend the Agreement with A-Town AV to upgrade the Audio/Video system in the Council Chamber.
Approved on April 9, 2024, Council meeting, Item 9.d.
Capital Improvement Program: Approved a budget adjustment request in the amount $130,000 of ARPA
Funds to fully fund the FCFA Apparatus Bay Doors Replacement Project that was originally budgeted with
Measure O-2006 Local Sales Tax Fund. Approved on April 9, 2024, Council meeting, Item 9.g.
Water Fund: Approved budget adjustment totaling $514,200 from the Water Enterprise Fund Balance is
needed to fund the City’s share of the CCB project preconstruction costs for FY 2023-24. Approved on
April 9, 2024, Council meeting, Item 11.a.
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SECTION 5: UPDATE ON MAJOR CITY GOALS AND CAPITAL IMPROVEMENT PLAN
This information is provided to keep the City 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
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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 3Q FY 2024-25 In Progress
1.1b Obtain Economic Development Management Services New CMO 3Q FY 2023-24 4Q FY 2024-25 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 2Q FY 2024-25 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 2Q FY 2024-25 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 4Q FY 2024-25 Not started
1.3b Prepare and adopt cannabis ordinance, if directed by the City
Council New CD/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 Not started
1.3c Evaluate feasibility of a Cannabis Tax New CD/AS/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 In Progress
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 Completed
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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 2024-25 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 Completed
3.1c Collect FEMA reimbursement for January - March 2023 storm
damage New AS In progress 3Q FY 2024-25 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 2Q FY 2024-25 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 4Q FY 2023-24 In Progress
3.3a.ii. Traffic Way Bridge ROW Carryover CD/PW Completed 1Q FY 2024-25 Completed
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 Completed 2Q FY 2024-25 Completed
3.3b.i. Swinging Bridge Rehabilitation NEPA Carryover CD/PW Completed 3Q FY 2023-24 Completed
3.3bii Swinging Bridge Rehabilitation Bid for Construction Carryover CD/PW Completed 3Q FY 2023-24 Completed
3.3b.iii. Swinging Bridge Construction New CD/PW Completed 2Q FY 2024-25 Completed
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3.3c Halcyon Complete Streets New CD/PW In Progress
3.3c.i. Halcyon Complete Streets Design New CD/PW 1Q FY 2024-25 1Q FY 2024-25 In Progress
3.3c.ii. Halcyon Complete Streets ROW acquisition New CD/PW 1Q FY 2023-24 1Q FY 2024-25 Not started
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 Completed 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 1Q FY 2024-25 In Progress
3.3g 2024 Pavement Management Program Construction New CD/PW 4Q FY 2023-24 3Q FY 2024-25 Not started
3.3h Community Safety Camera Network Carryover Police/CD In Progress 4Q FY 2023-24 In Progress
3.3i Replacement Generator at Station 1 New CD/PW/Fire Completed 4Q FY 2023-24 Completed
3.3j Lift Station 3 New CD/PW Completed 1Q FY 2024-25 Completed
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 3Q FY 2024-25 In Progress
3.3n CMP Lining New CD/PW 1Q FY 2024-25 Ongoing Not started
Infrastructure (continued)
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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 In Progress
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 In Progress
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
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