CC 2017-05-09_12a Prelim Budget Review MEMORANDUM
TO: CITY COUNCIL
FROM: JIM BERGMAN, CITY MANAGER
DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF PRELIMINARY FISCAL YEAR 2017-18 BUDGET
DATE: MAY 9, 2017
RECOMMENDATION:
It is recommended the City Council review and provide direction on the preliminary Fiscal
Year (FY) 2017-18 budget.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposed Citywide budget recommends approximately $26.7 million in expenditures
including operating costs such as salaries, benefits, services, supplies and maintenance,
debt service, and capital related items over the next fiscal year.
The General Fund budget recommends approximately $16.9 million in expenditures. The
General Fund revenues and transfers are projected to be $16.9 million during the same
period. The budget as presented is balanced, maintains the reserves and continues to
comply with Council policy for the unappropriated reserve level and addresses some of the
priority concerns discussed previously with the City Council.
BACKGROUND:
This report addresses preliminary expenditure budget recommendations for all of the City’s
funds, including operating as well as capital project funds. Certain sections of the Budget
document were not produced for the preliminary City Council review, but will be included in
the final document.
The General Fund is the City’s primary operating fund and most of the City’s basic
services are included here, such as general government, community development, police,
public works, recreation and the cost of fire services. The General Fund is primarily
supported by taxes and assessments, notably property tax and sales tax, and is also
supported by user fees, licenses and permits, franchise fees and interest income. In
addition, the General Fund provides services, such as payroll, building maintenance and
information technology support to other funds and approximately 16% of General Fund
revenues are transfers from other funds for these services, as shown on the next page.
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Taxes comprise the largest source of revenue in the General Fund; therefore, fluctuations
in the amount of taxes received can have profound impacts on the City’s ability to provide
services. As shown below, General Fund tax revenues have generally been trending
upward over the past 8 years and are expected to increase in FY 2017-18
There are a number of challenges that each department in the City will be facing in the near
term as well as the long term. Major challenges were reviewed with the City Council at the
March 28, 2017 meeting; these challenges were summarized into the following categories:
Pension costs
Securing a long-term, drought resistant water supply
Property Taxes
29%
Sales Tax
23%
Fines & Penalties
<1%
Franchise Fees
4%
Other Taxes
10%
Licenses & Permits
2%Charges for Services
7%Other Revenue
3%
Transfers
16%
General Fund Revenues
‐
1,000
2,000
3,000
4,000
5,000
6,000
09‐10 10‐11 11‐12 12‐13 13‐14 14‐15 15‐16 16‐17 17‐18In ThousandsFiscal Year
General Fund Tax Revenue
Property Tax
Sales & Use Tax
Transient
Occupancy Tax
Franchise Fees
Other Taxes
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MAY 9, 2017
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Eventual closure of the Diablo Nuclear Power Plant
Overall economic development and revenue generation
Long-term infrastructure maintenance
Sustainability of ongoing operational needs.
It has been recommended that the City proceed with a one-year budget for FY 2017-18
before resuming the two-year budget model. Given this direction, staff has prepared an
essentially “status quo” budget, with only minor adjustments or critically necessary changes
proposed.
In summary and in recognition of the direction noted above, the proposed budget provides for
the following:
Additional PERS required contributions
Additional Liability, Worker’s Compensation and health insurance premiums
2% salary adjustments for employees
Reclassification of 1 position to achieve administrative analyst support
1-Full-time, limited term Engineering Inspector (net $0 increase to General Fund)
Five Cities Fire Authority (FCFA) Preliminary Budget recommendations
Contingency funding for FCFA equipment replacement if grant funding is unsuccessful
Fee increases for State required water system operation
Staff has been able to address a number of challenges in the proposed FY 2017-18 budget
as discussed in more detail in this report. However, not all of the City’s needs are able to be
met at this time.
ANALYSIS OF ISSUES:
The Preliminary Budget was developed through the input of all departments and is based on
a collaborative effort to provide staff’s best professional judgment regarding future needs and
resources available to the City. It necessarily requires a number of assumptions related to
revenues, expenditures, current trends and activity levels, anticipated changes in general
economic indicators and specific knowledge about the community.
Assumptions on revenues include:
Property taxes will increase by 4%
Sales taxes will increase by 4%
Transient Occupancy taxes will increase by 3%
Building and planning fees will continue to see a steady increase based on current
activity levels, combined with fee increases previously directed by the City Council
The City will begin receiving revenues from SB1, the increased gas tax of
approximately $122,000
Expenditure budgets were developed by departments based on a number of assumptions
and criteria. Expenditure assumptions include:
A 2% increase is assumed for salaries for all employees, as current contracts expire
June 30, 2017
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MAY 9, 2017
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The contribution to the Five Cities Fire Authority (FCFA) is based upon the preliminary
budget presented to the FCFA Board in March 2017, representing an increase from
FY 2016-17 of approximately $81,100 or 4%
In addition, $170,800 is identified for additional contribution to FCFA if they are
unsuccessful with the grant application to secure new Self Contained Breathing
Apparatus
Where contracts exist, costs increase by the contractual agreement, otherwise a
general inflationary increase of 1.5% was used
A $25,000 contingency for unexpected projects or other needs was built into
recommendations for the Local Sales Tax fund
There are a number of significant cost variations in the expenditure budgets, many of which
are beyond the City’s control. As the City Council is aware, the most significant of these is
the cost of pension contributions, increasing by approximately $202,100 or 9.2% in FY 2017-
18, with much higher future increases projected. Other increases include liability and
workers’ compensation insurance premiums ($129,400) as well as the previously mentioned
FCFA contribution.
Based upon staff’s analysis of work programs, goals, priorities and unmet needs, there are a
few changes proposed in the Preliminary Budget. A summary of each request is provided
below.
1. Water Administration: Due to increased fees paid to the State of California for the
operation of the water system, an additional $20,000 is required. There are no
alternatives available, the annual fees must be submitted in order to operate the
system.
2. Information Technology: An increase in network storage requirements associated with
the expanded use of technology requires additional electronic file storage capacity at a
cost of $65,000. The Information Technology division has explored several
alternatives and recommends increasing the on-site storage capacity of the network to
provide for the notable increases in the use of Geographic Information Systems (GIS),
electronic document imaging and email communication.
3. Analyst Position: There is a critical Citywide need for a program analyst to provide
technical support, including GIS analysis for special projects, to identify, compile and
analyze key data to guide decisions; and to additionally implement communication
strategies and plans, including coordination of social media platforms. Staff is
exploring alternatives that may include the reclassification of one position. Additional
funding has been included in the Preliminary FY 2017-18 Budget to accommodate a
reclassification; however, final recommendations will come forward separately to the
City Council for approval.
4. Engineering Inspector Position: The City currently utilizes consultants to provide
engineering inspection services for right-of-way inspection, developer utility
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MAY 9, 2017
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inspections, stormwater issues and the City’s capital projects, such as the pavement
management program and drainage improvements. During the Great Recession, a
strategy of utilizing consultants to perform this task was prudent; however, with the
increased requirements related to stormwater issues and the increased level of
development activity, it would be more cost effective to have a city employee perform
this function. Staff recommends the addition of a full-time, limited term (contract)
engineering inspector position for the 2017-18 fiscal year. Total costs are estimated at
$145,000, of which $62,000 would come from current Capital Improvement Projects
that require inspection services, with the remainder covered by engineering fee
revenue. The concept would provide for an in-house inspector that could provide
services on capital projects during the construction season, when the City is paving
roads and repairing storm drains and, during the rainy season, would provide
stormwater inspection services. The proposal is cost neutral, but is expected to
increase service levels and response times considerably.
There are a few items that are not included in the Preliminary Budget to bring to the City
Council’s attention as well.
1. No budgetary changes have been made to staffing in the Recreation Services
Department. Future consideration of positions will be a top priority for the
incoming City Manager. In order to maintain maximum flexibility in determining
the appropriate scope and structure, all current positons continue to be
budgeted at the same level.
2. The Preliminary 2017-18 Budget does not include any adjustment for costs
related to the formation and beginning stages of implementation of the
Sustainable Ground Water Act (SGMA) or the formation of a Groundwater
Sustainability Agency (GSA) beyond actions approved by the City Council on
March 28, 2017. At this time the costs and funding sources remain speculative
and unrefined. Further information and budget adjustment recommendations
will be provided to the City Council as the formation process develops.
3. The Public Works department is still developing recommendations for the next
round of vehicle replacements. The Preliminary Budget retains current debt
service levels, however these may change when vehicle replacements and
lease financing is finalized.
ALTERNATIVES:
The following action is provided for City Council consideration:
1. Provide direction to staff.
ADVANTAGES:
The City Council has the opportunity to review the proposed budget and provide direction to
staff. Any changes desired by the Council can be incorporated into the budget prior to final
adoption by the City Council.
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MAY 9, 2017
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DISADVANTAGES:
There are no disadvantages identified to receiving this information and providing direction to
staff.
ENVIROMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachment(s):
1. Preliminary FY 2017-18 Budget
2. Sales Tax Fund 10 Year Revenue and Expense Plan
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*
*The Local Sales Tax Fund transfers funds to the General Fund to cover the salary and benefits of a Senior Police Officer position.
*The Local Sales Tax and Transportation Funds transfers funds to the Streets Fund to cover street and bridge maintenance-related expenditures.
*
*The Sewer, Water and Dowtown Parking District Fund reimburses the General Fund for utilities, computers, insurances, and auto maintenance.
CITY OF ARROYO GRANDE
INTERFUND TRANSFERS
For the Fiscal Year Ending 2017-18
The City of Arroyo Grande uses transfers to charge one fund for services provided by another fund. The cost of the service to be provided to another fund is made up of two types
of costs, direct costs and indirect costs. Direct costs are those expenses that can be directly attributed to the activity, such as the salary and benefit cost of a water employee
working on sewer lines. The direct costs are transferred to the benefiting fund by means of personnel transfers. Indirect costs are expenses not readily identifiable with a particular
action or service,but rather are incurred for a joint purpose, which benefits more than one fund/department. Common examples of indirect costs are accounting, personnel,
building maintenance, and utility expenses. Though indirect costs are not readily identifiable with direct operating programs, they can be allocated based on rational and logical
methods. The indirect costs are transferred to the benefiting fund by means of interfund transfers.
Personnel Transfers - Personnel transfers are for the direct cost of employee time spent doing work in a different fund or program.All employees that are charged to one fund,but
do activities in another fund, have their salary and benefits charged to the benefiting fund through personnel transfers. For instance, the Utility Billing Clerk spends 90%of their
time in answering questions regarding water bills, receiving and applying water payments, while 100%of their salary and benefits are charged to the General Fund. Therefore, the
Water and Sewer Funds reimburse the General Fund for 90% of the costs via an interfund transfer.
The Streets (Gas Tax), Sewer, Water and Successor Agency to the Former Redevlopment Agency Funds transfers funds to the General Fund to cover personnel-related
services in the City Administration, Legislative and Information Services, Administrative Services, Community Development and Public Works departments.
Cost Allocation Transfers - Cost allocation transfers are for direct costs incurred in the General Fund but used by other funds. Items such as telephone charges, postage, property
tax, and utility costs are allocated to other funds based on the use. Cost Allocation is a method of allocating indirect costs based on the proportionate share of benefits received.
Different costs may have different methods of allocation. For instance, payroll costs are allocated on the number of full time positions, City Council costs on the number of Council
Agenda items, the City Manager budget on citywide fund appropriations, and building maintenance costs on the number of departmental square feet in City buildings.
The Local Sales Tax Fund transfers funds to the General Fund to cover Retention Basin Drainage Improvements and the Narcotics Task Force.
2-18
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*A detailed description of funded CIP Projects is located in Section 7 - Capital Improvement Fund under the Project Revenue Summary schedule.
Capital Transfers - Capital transfers are made to the Construction Improvement Program to finance projects related to the funding source, i.e., Water, Sewer and Sales Tax Fund
transfers funds to the Capital Improvement Program for the Corporation Yard Building Improvements Project.
CITY OF ARROYO GRANDE
INTERFUND TRANSFERS
For the Fiscal Year Ending 2017-18
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FUND: 010 GENERAL FUND
2017-18
2014-15 2015-16 ORIGINAL AMENDED ESTIMATED PROPOSED
ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET
BUDGET ANALYSIS
TAXES
4001 Current Secured 4,157,235$ 4,339,742$ 4,339,900$ 4,535,000$ 4,535,200$ 4,716,400$
4002 Current Unsecured 105,746 106,530 105,000 105,000 105,000 109,000
4003 Prior Secured (7,937) (9,166) (10,000) (10,000) (10,000) (10,000)
4004 Prior Unsecured 4,909 4,817 4,000 4,000 4,000 4,000
4005 Redemptions 416 200 - - - -
4007 Property Tax in Lieu of VLF 1,360,973 1,419,412 1,486,100 1,486,100 1,486,100 1,550,000
4008 Triple Flip - Sales Tax 793,725 711,993
4010 Transient Occupancy Tax 922,195 966,384 992,700 1,000,200 1,027,400 1,030,200
4011 Sales & Use Tax 2,597,249 3,057,103 3,632,400 3,632,400 3,919,900 3,777,700
4012 Sales Tax-Safety 149,515 147,864 120,000 120,000 130,000 145,000
4013 Property Transfer Tax 108,529 127,985 100,000 100,000 100,000 103,000
4030 Franchise Taxes 612,261 613,715 593,000 600,000 600,000 612,000
4050 Business License Tax 90,108 86,947 97,000 92,000 92,000 94,000
Total 10,894,924 11,573,526 11,460,100 11,664,700 11,989,600 12,131,300
LICENSES & PERMITS
4124 Fire Permits 9,062 6,186 8,000 8,000 9,000 8,200
4125 Police Permits 25,375 31,988 32,000 32,000 33,800 32,800
4127 Other Permits-Tobacco Retailers 3,704 3,488 3,600 3,600 3,600 3,700
4128 Other Permits-Solicitation - 58 200 200 - 200
4141 Other Permits-Encroachment 40,490 32,630 36,000 65,100 76,200 72,000
4161 Sign Permits 1,933 2,940 2,500 2,500 2,500 2,600
-
2016-17
GENERAL FUND REVENUE DETAIL
3-5 Item 12.a. - Page 53
FUND: 010 GENERAL FUND
2017-18
2014-15 2015-16 ORIGINAL AMENDED ESTIMATED PROPOSED
ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET
BUDGET ANALYSIS
2016-17
GENERAL FUND REVENUE DETAIL
LICENSES & PERMITS (continued)-
4162 Use Permits 46,992$ 12,434$ 30,000$ 35,000$ 43,800$ 45,000$
4164 Use Permits-Temporary 2,674 4,992 3,300 3,600 3,600 3,700
4181 Building Permits 155,390 115,644 168,000 168,000 182,100 180,300
4182 Plumbing Permits 4,473 3,238 5,800 5,800 5,800 5,900
4183 Electrical Permits 38,410 45,297 30,000 36,000 36,000 36,900
4185 Excav/Grade Permits 1,570 1,014 2,400 2,400 2,400 2,500
4187 Mechanical Permits 8,355 7,573 7,000 7,500 8,900 7,700
4189 Other Permits-Demolition 1,837 2,450 1,500 1,500 1,500 1,500
Total 340,265 269,932 330,300 371,200 409,200 403,000
FINES
4201 Vehicle Code Fines 38,003 38,702 35,000 35,000 35,000 35,000
4202 Local Ordinance 2,152 1,385 2,000 2,000 2,000 2,000
4203 Parking 3,609 6,447 5,000 5,000 5,700 6,000
Total 43,764 46,534 42,000 42,000 42,700 43,000
USE OF MONEY AND PROPERTY
4301 Interest 44,301 80,146 35,000 35,000 35,000 36,000
4350 Rent 40,633 43,285 41,200 47,200 47,200 48,000
4351 Telecommunication Site Leases 215,016 204,584 235,000 235,000 235,000 235,000
4353 Rent-Commercial Buildings 2,181 13,438 9,000 14,000 14,600 15,000
4354 Park User Fees 33,868 38,120 30,000 33,000 33,000 35,000
4355 Building Supervision 2,046 - 5,000 - - -
3-6 Item 12.a. - Page 54
FUND: 010 GENERAL FUND
2017-18
2014-15 2015-16 ORIGINAL AMENDED ESTIMATED PROPOSED
ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET
BUDGET ANALYSIS
2016-17
GENERAL FUND REVENUE DETAIL
USE OF MONEY AND PROPERTY (continued)
4375 Returned Check Fees 325$ 250$ 200$ 200$ 200$ 200$
4376 Collection-Credit Bureau 34 50 - - - -
Total 338,404 379,873 355,400 364,400 365,000 369,200
AID FROM OTHER GOVERNMENTS
4411 Motor Vehicle License Fees 7,129 7,032 7,200 7,200 11,100 10,000
4413 Homeowners P.T.R.33,760 33,616 34,000 34,000 34,000 34,000
44XX ICAC Reimbursement - - - - - 5,000
4426 P.O.S.T. Reimbursement 16,512 10,065 9,000 9,000 9,000 10,000
4427 Mandated Cost Recovery 119,004 35,824 5,000 5,000 5,000 5,500
4451 Lucia Mar Reimbursement 56,000 58,633 59,500 59,500 63,400 63,400
4458 State Grant 8,594 36,811 - - - -
4479 Office of Traffic Safety Grant - Police 13,439 - - - -
Total 240,999 195,420 114,700 114,700 122,500 127,900
COMMUNITY DEVELOPMENT CHARGES FOR SERVICES
4501 Developer Application Fees 30,031 18,448 22,000 22,000 22,000 22,600
4502 Filing/Certificate Fees 788 - 1,600 1,900 1,900 1,900
4503 File Fees-Variances - 2,698 1,300 1,300 1,300 1,300
4504 File Fees-Appeals 526 1,054 500 500 500 500
4505 Plan Check Fees 136,156 117,064 187,000 187,000 187,000 191,700
4506 Lot Split/Subdivision 17,108 6,988 5,000 9,500 19,100 9,700
4507 Architect Review Fees 5,179 8,302 7,000 7,600 9,900 7,800
3-7 Item 12.a. - Page 55
FUND: 010 GENERAL FUND
2017-18
2014-15 2015-16 ORIGINAL AMENDED ESTIMATED PROPOSED
ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET
BUDGET ANALYSIS
2016-17
GENERAL FUND REVENUE DETAIL
COMMUNITY DEVELOPMENT CHARGES FOR SERVICES (continued)
4509 Home Occupancy Permits 5,294$ 5,292$ 7,000$ 5,000$ 5,000$ 5,100$
4510 Miscellaneous Plan Fees 7,746 7,949 6,800 8,200 11,200 8,400
4511 Pre-application Reviews 2,892 789 2,500 2,500 2,500 2,600
4512 Sign Reviews - 1,419 600 600 600 600
4514 Minor Exceptions 2,229 852 2,200 2,400 2,400 2,500
4518 EIR Administrative Fee 6,436 24,052 3,800 4,700 20,000 4,800
Total 214,385 194,907 247,300 253,200 283,400 259,500
RECREATION CHARGES FOR SERVICES
4602 Children in Motion 394,191 336,582 350,000 350,000 350,000 358,800
4603 Play/Learn Sessions 74,693 78,569 65,000 65,000 65,000 66,600
4604 Play/Learn-Summer 5,016 4,262 4,400 4,400 4,400 4,500
4605 Special Interest Classes 115,740 146,100 147,000 147,000 147,000 150,700
4606 Sports Leagues 26,357 27,286 27,500 27,500 27,500 28,200
RECREATION CHARGES FOR SERVICES (Continued)
4607 Special Events 15,672$ 23,586$ 20,500$ 20,500$ 20,500$ 21,000$
4608 Softball Leagues 39,546 32,090 48,000 48,000 48,000 49,200
4609 Recreation - Other Revenue 3,140 4,350 5,900 5,900 5,900 6,000
4613 Five Cities Youth Basketball 59,370 52,491 52,000 52,000 52,000 -
4614 Youth Wrestling Fund Raising 45 - - - - -
4615 Children in Motion - Classes 4,961 54 - - - -
Total 738,731 705,370 720,300 720,300 720,300 685,000
3-8 Item 12.a. - Page 56
FUND: 010 GENERAL FUND
2017-18
2014-15 2015-16 ORIGINAL AMENDED ESTIMATED PROPOSED
ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET
BUDGET ANALYSIS
2016-17
GENERAL FUND REVENUE DETAIL
PUBLIC WORKS CHARGES FOR SERVICES
4701 Miscellaneous Engineering Fees 1,703$ 23,845$ 700$ 700$ 700$ 700$
4702 Engineering Map/Plan Check 35,094 51,412 15,500 15,500 15,500 25,000
4703 Engineering Inspection Fees 130,722 150,204 28,500 55,000 55,300 128,000
4704 Grading Fees 1,207 500 300 300 300 300
Total 168,726 225,961 45,000 71,500 71,800 154,000
OTHER CHARGES FOR SERVICES
4731 Live Scan Fingerprinting 14,239 10,679 12,000 12,000 12,000 -
4753 Sanitation District Billing Services 13,145 12,666 13,000 13,000 15,800 15,000
4762 Sewer Facility Charge 4,096 2,169 3,600 3,600 3,800 3,600
4771 County TMD Assessment Admin Fee - 1,845 1,500 1,500 1,500 1,500
4772 FCFA Admin/Support Services 12,900 32,500
Total 31,480 27,359 30,100 30,100 33,100 52,600
OTHER REVENUE
4801 Other Revenue 47,620 35,857 2,000 2,000 2,000 2,000
4802 Sales-Land 806,917 - - - - -
4803 Sales-Equipment/Materials 9,144 34,991 5,000 5,000 5,000 5,000
4804 Sales-Publications/Reports 833 514 500 500 500 500
4805 Insurance Refunds/Dividends 1,000 28,641 - - - -
4807 Expense Recovery 25,668 11,669 5,000 8,000 8,000 8,000
4808 Expense Recovery-Police 23,363 11,130 5,000 5,000 5,000 5,000
4816 Other Financing Sources 209,613 - - - -
Total 914,545 332,415 17,500 20,500 20,500 20,500
3-9 Item 12.a. - Page 57
FUND: 010 GENERAL FUND
2017-18
2014-15 2015-16 ORIGINAL AMENDED ESTIMATED PROPOSED
ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET
BUDGET ANALYSIS
2016-17
GENERAL FUND REVENUE DETAIL
TRANSFERS IN
4901 Personnel Transfers 1,108,692$ 1,319,032$ 1,343,600$ 1,343,600$ 1,343,600$ 1,375,400$
4902 Operating Transfers 306,792 - - - - -
4903 Cost Allocation 682,308 847,393 861,900 861,900 861,900 866,000
4907 Transfers In - CDBG Fund 2,265 - - - - -
4909 Transfers In - TBID Fund 3,000 3,000 3,000 3,000 3,000 3,000
4920 Transfers In - Streets Fund 1,500 - - - - -
4930 Transfers In - Sewer Fund 1,000 - - - - -
4940 Transfers In - Water Fund 2,000 - - - - -
4950 Transfers In - Sales Tax Fund 193,000 261,600 71,300 71,300 71,300 343,900
4952 Transfers In - RDA Successor Fund 238,946 148,100 69,000 69,000 69,000 69,000
Total 2,539,503 2,579,125 2,348,800 2,348,800 2,348,800 2,657,300
Grand Total 16,465,726$ 16,530,422$ 15,711,500$ 16,001,400$ 16,406,900$ 16,903,300$
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WATER NEUTRALIZATION IMPACT FEES FUND SUMMARY
FUND: 226 WATER NEUTRALIZATION IMPACT
2017-18
2014-15 2015-16 ORIGINAL AMENDED ESTIMATED PROPOSED
ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET
Beginning Fund Balance 322,215$ 282,812$ 32,843$ 32,843$ 32,843$ 59,493$
Revenues:
Revenues 88,127 19,474 42,000 58,000 79,000 58,000
Transfers In 200,000 200,000 50,000 50,000 50,000 50,000
Total Revenues 288,127 219,474 92,000 108,000 129,000 108,000
Expenditures:
Salaries and Benefits - - - - - -
Services and Supplies 327,530 469,443 102,350 102,350 102,350 106,000
Capital Outlay - - - - - -
Transfers Out - - - - - -
Total Expenditures 327,530 469,443 102,350 102,350 102,350 106,000
Change in Fund Balance (39,403) (249,969) (10,350) 5,650 26,650 2,000
Ending Fund Balance 282,812$ 32,843$ 22,493$ 38,493$ 59,493$ 61,493$
2016-17
The City requires development projects that increase total water consumption in the City to “neutralize” that demand by reducing water
consumption in existing development by an equivalent amount or by paying a fee in-lieu of performing water consumption reductions. This
fund accounts for the amount collected from developers and is used towards the City’s water conservation efforts.
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CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-1
INTRODUCTION
The Capital Improvement Program (CIP) is a capital investment plan that
supports the quality of life in the City of Arroyo Grande by providing for the
design, construction and renovation of major capital projects that benefit a
broad segment of the community. The Program is designed to protect,
preserve, and enhance the City’s infrastructure, extend useful life of public
facilities, and improve and enhance the delivery of City services.
The CIP is usually presented as a revolving five-year program that acts as a
guide for identifying current and future fiscal requirements. The current
year acts as the City’s annual capital budget. For FY 2017-18, due to the
nature of the one-year budget plan, only projects that have new or
additional funding proposed for the fiscal year are presented. Staff
continues to prepare a five-year projection, which will be updated with the
next biennial budget.
Projects in the CIP typically include:
Improvements that are debt-financed;
Acquisition of land;
Construction of new buildings, parks, improvements or facilities
including engineering, design, and other pre-construction costs
which are estimated to exceed $15,000;
Major equipment or furnishings required for new buildings.
Preparation of the CIP is a coordinated process that includes working with
City staff and commissions to compile and prioritize a list of discretionary
projects, develop associated cost estimates and identify potential funding
sources.
The City Council reviews and approves the five-year CIP following a series of
public study sessions and a public hearing. Approval of the CIP includes
appropriating funding for the current fiscal year.
A number of criteria and/or considerations are applied in determining the
appropriateness of each CIP project, including:
Consistency with the City’s General Plan, Water and
Wastewater Master Plans, and/or applicable adopted and
established City policies;
Benefit to the broader public good and positive benefit to cost
ratio;
Potential impact upon City operating expenditures;
The need to meet State, Federal or other legal mandates and
requirements;
The need to mitigate an identified health or safety problem;
Consideration of geographic equity in providing improvements
and facilities throughout the City; and
The need to balance project design, management, and
inspection with available CIP staffing.
Summary Tables
The CIP is presented in two summary tables. The first represents projects
that are currently underway, but will be incomplete before the end of the
fiscal year. The funding for these projects will roll forward into FY 2017-18
as the projects move toward completion.
The second represents new projects or projects that require additional
funding in FY 2017-18. The summaries are presented after the CIP project
descriptions
CIP Projects
Potential CIP projects are classified into one of six categories:
Miscellaneous, Parks, Streets, Drainage, Sewer and Water.
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CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-2
Each project is presented on the following pages with a general description
and cost estimates.
Project costs are escalated (where appropriate) to indicate the impact of
inflation on construction costs in future years based upon a CPI rate of
inflation (unless more specific information was available). Cost escalation
ensures that adequate funding is identified at the time the project is
approved.
Project appropriations reflect funding amounts and sources allocated
through formal City Council action; project cost estimates summarize prior,
current and future year expenditures.
Funding Sources
CIP projects are funded and financed through a variety of general purpose
(unrestricted), grant and special purpose revenue sources. These include:
Impact Fees:
Recreation Center Impact Fee – This impact fee is collected for
recreation facilities in order to maintain the adopted level of
service of recreation/community center facilities of 542 square
feet per thousand in population.
Park Improvement Impact Fee – This impact fee is collected for
park improvements that will be used to maintain the adopted
level of service for neighborhood and community parks of 4.0
acres per thousand in population.
Park Development Impact Fee – The City's park-in-lieu or park
development fee allows the City to acquire the dedication of
land, or the payment of a fee in lieu of land to be used for the
purchase (or development) of park property.
Traffic Signalization Impact Fee – This impact fee is required of
development for purposes of providing the actual or estimated
costs of construction for regional traffic signalization
improvements. These funds may be used only for the
construction of traffic signals within the City.
Transportation Facility Impact Fee – This impact fee is required
from developers for transportation system improvements as a
condition of approval by the City.
Sewer Facility Impact Fee – This impact fee is required from
developers to pay for the future cost of expansion of sewer
services for new development.
Water Facility Impact Fee – This impact fee is required from
developers to pay for the future cost of expansion of water
services for new development.
Water Availability Impact Fee – This impact fee is collected from
developers to mitigate future water requirements.
Police Impact Fee – This impact fee is required from developers
to pay for the expansion of police facilities in order to serve
future development.
Charges for Services:
Downtown Parking Assessment Fee – This assessment is
charged to the merchants within the Village of Arroyo Grande.
The purpose of this revenue source is to provide parking
maintenance and expansion in the Downtown Village area.
Special Sales Tax – This revenue source is provided by the ½
percent local sales tax increase approved by voters in November
2006.
Sewer Fees – This revenue source is provided by users of the
sewer system and is the portion related to future sewer
infrastructure-related improvements.
Water Fees – This revenue source is provided by users of the
water system and is the portion related to future water
infrastructure-related improvements.
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CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-3
Intergovernmental and Grant Revenues:
General Fund – This is general purpose revenue received by the
City (mainly through property and sales taxes) that has no
restrictions and is typically expended on any project or
improvement deemed appropriate and necessary by City
Council.
Community Development Block Grant – This revenue source is
provided by the annual appropriation of the CDBG program.
Funds are required to be used within a broad range of
functional area such as ADA improvements.
Transportation Fund – This revenue source is provided by the
San Luis Obispo County of Government’s (SLOCOG) Local
Transportation Fund (LTF). This annual appropriation is
restricted to the use of street and road maintenance.
Highway Safety Improvement Program (HSIP) – This revenue is
federal funds for projects that achieve a significant reduction in
traffic fatalities and serious injuries on all public roads, including
non-State owned public roads and roads on tribal lands.
Regional State Highway Account (RSHA) – This revenue is
competitive State grant funding distributed through SLOCOG for
transportation projects of regional significance throughout the
County.
Urban State Highway Account (USHA) – This revenue is the
annual State funding apportionment based on population
distributed to each jurisdiction in the County through SLOCOG.
Highway Bridge Program (HBP Funds) – This revenue is federal
funds that assist the States to improve the condition of their
highway bridges through replacement, rehabilitation, and
systematic preventative maintenance.
CMAQ – The purpose of the Congestion Mitigation and Air
Quality (CMAQ) State Improvement Program is to fund
transportation projects or programs that will contribute to
attainment or maintenance of the National Ambient Air Quality
Standards for ozone, carbon monoxide, and particulate matter.
Other Revenue:
Expense Recovery – Funds received from various sources to pay
for specific expenditures (i.e., the sale of plans and
specifications to contractors which pay for the cost of
reproduction).
Donations – Funds received from various community members
and groups to help finance a variety of City projects.
Developer In-Lieu Fees – Funds received from developers to
mitigate measures required as a result of development.
SERVICE PRIORITIES
The City of Arroyo Grande is dedicated to providing an exceptional quality of
life for its citizens. Service levels and programs in the Budget for the fiscal
year 2017-18 are based upon priorities established by the both the City
Council and the voter advisory measures approved with the Local Sales tax
in 2006. These include maintaining and promoting:
Public safety and disaster preparedness;
City infrastructure; including water and sewer pipes and lines,
city facilities, streets, information technology and drainage
improvements;
Transportation; including streetscapes and intersection
improvements and;
City facilities.
FISCAL STRATEGIES
The City of Arroyo Grande is committed to maintaining long-term fiscal
sustainability. The City has avoided the noticeable impacts and service level
reductions experienced by most California cities through operating an
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CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-4
effective, cost efficient local government. Municipal services continue to
address high priority needs. This Capital Improvement Program is designed
to identify and develop projects using a long-term vision; to provide a
realistic look forward over a five year planning period and set priorities for
each need identified. It should be noted that because this is a five-year
outlook, needs and priorities may change. As such, the development of the
Capital Improvement Program and budget allows the opportunity to review
and revise the CIP based on the needs of the City.
While this comprehensive program is not limited to projects for which
funding has been identified and is available, projects for which there is
funding recommended in FY 2017-18 are presented in more detail.
Item 12.a. - Page 108
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-5
PROJECT SUMMARIES AND DESCRIPTIONS: RECOMMENED PROJECTS FOR FISCAL YEAR 2017-18
Item 12.a. - Page 109
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-6
Item 12.a. - Page 110
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-7
Project Title:Soto Complex Barrier Removal Project, Phase III
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4907 CDBG 0 0 0 60,257 60,257
Total 0 0 0 60,257 60,257
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7001 Construction 0 0 0 41,500 41,500
7201 Contingencies 0 0 0 4,000 4,000
7301 Contract Admin 0 0 0 10,000 10,000
7501 Design & Survey 0 0 0 4,757 4,757
Total 0 0 0 60,257 60,257
Improve accessibility at Santos Field in the Soto Sports Complex which currently does not comply with the Americans
with Disabilities Act (ADA).
Item 12.a. - Page 111
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-8
Project Title:Strother Park Large Play Structure
PROJECT DESCRIPTION
Replacement of the existing large play structure at Strother Park.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4914 Park Improvement 0 0 0 60,000 60,000
Total 0 0 0 60,000 60,000
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7001 Construction 0 0 0 60,000 60,000
Total 0 0 0 60,000 60,000
Item 12.a. - Page 112
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-9
Project Title:Swinging Bridge Reinforcement
PROJECT DESCRIPTION
Evaluation of the swinging bridge to determine its structural integrity, and preparation of plans, specifications and
cost estimates for the repair and strengthening of the swinging bridge.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4910 General Fund 200 200 0 0 0
4950 Sales Tax 202,437 22,437 180,000 271,100 451,100
Total 202,637 22,637 180,000 271,100 451,100
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
5199 Salary Reimb 200 200 0 0 0
7001 Construction 200,000 20,000 180,000 167,000 347,000
7201 Contingencies 0 0 0 34,700 34,700
7301 Contract Admin 0 0 0 34,700 34,700
7501 Design & Survey 2,437 2,437 0 34,700 34,700
Total 202,637 22,637 180,000 271,100 451,100
Item 12.a. - Page 113
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-10
Project Title:Castillo Del Mar Road Extension/Valley Road Drainage
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4825 Developer Contribution 582,500 0 582,500 0 582,500
4910 General Fund 200 200 0 0 0
4950 Sales Tax 143,075 0 143,075 50,000 193,075
Total 725,775 200 725,575 50,000 775,575
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
5199 Salary Reimb 200 200 0 0 0
7001 Construction 604,095 0 604,095 50,000 654,095
7201 Contingencies 42,000 0 42,000 0 42,000
7301 Contract Admin 21,240 0 21,240 0 21,240
7401 Testing 5,500 0 5,500 0 5,500
7501 Design & Survey 52,740 0 52,740 0 52,740
Total 725,775 200 725,575 50,000 775,575
On August 27, 2013, the City Council approved the Memorandum of Understanding between the Lucia Mar School
District, City of Arroyo Grande, J.H. Land Partnership and John Taylor. Under the terms of the MOU, J.H. Land
Partnership will pay the City up to $582,500 for the costs related to the road and drainage improvements. The total cost
of the project is estimated to be $775,000.
Item 12.a. - Page 114
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-11
Project Title:Pavement Management Program
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4486 Urban SHA 70,000 70,000 0 70,000 70,000
4910 General Fund 12,000 12,000 0 0 0
4928 Transp Fund 100,000 100,000 0 100,000 100,000
4950 Sales Tax 754,305 658,371 95,934 675,000 770,934
Total 936,305 840,371 95,934 845,000 940,934
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
5199 Salary Reimb 12,000 12,000 0 0 0
7001 Construction 791,067 695,133 95,934 624,700 720,634
7002 Construction-PW 0 0 0 10,000 10,000
7201 Contingencies 19,238 19,238 0 72,100 72,100
7301 Contract Admin 83,603 83,603 0 27,200 27,200
7401 Testing 19,838 19,838 0 15,000 15,000
7501 Design & Survey 3,175 3,175 0 90,000 90,000
7701 Studies 7,384 7,384 0 6,000 6,000
Total 936,305 840,371 95,934 845,000 940,934
The City’s Pavement Management Program provides maintenance history and pavement condition index (PCI) for all
public streets in Arroyo Grande. The City annually performs pavement maintenance on public streets to the extent that
funds are available. Streets are selected based on pavement condition, location, and the type of maintenance
application. Maintenance applications are slurry seals, chip seals, and pavement overlays. Slurry and chip seals are thin
applications of liquid asphalt mixed with sand or rock chips. Asphalt overlays are 1 to 4-inch thick layers of hot asphalt
applied to the road surface. Crack sealing and repair of damaged roadway often precedes the maintenance operation.
Item 12.a. - Page 115
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-12
Project Title:Harloe Elementary School Pedestrian Access Enhancements
PROJECT DESCRIPTION
Design of sidewalk gap closures, curb ramps, and curb extensions to provide a safer pedestrian environment in the
vicinity of Harloe Elementary School.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4482 Regional SHA 0 0 0 50,000 50,000
4950 Sales Tax 0 0 0 50,000 50,000
Total 0 0 0 100,000 100,000
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7501 Design & Survey 0 0 0 75,000 75,000
7701 Studies 0 0 0 25,000 25,000
Total 0 0 0 100,000 100,000
Item 12.a. - Page 116
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-13
Project Title:Fair Oaks/Orchard Avenue Intersection Improvements
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
49XX CMAQ 0 0 0 0 0
4825 Developer Contribution 0 0 0 50,000 50,000
4950 Sales Tax 50,000 0 50,000 0 50,000
Total 50,000 0 50,000 50,000 100,000
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7701 Studies 50,000 0 50,000 50,000 100,000
Total 50,000 0 50,000 50,000 100,000
Feasibility study evaluating concepts and potential alternatives to address circulation and pedestrian/cyclist safety
issues involving high school traffic. The City has requested $350,000 in RSTP and/or CMAQ grant funding for operational
improvements on Fair Oaks Avenue.
Item 12.a. - Page 117
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-14
Project Title:Traffic Way Bridge Improvement Project
PROJECT DESCRIPTION
Engineering analysis to determine cost benefits of completing scour counter measure installation, bridge rehabiltiation
or replacement. Upon selection of appropriate repair, preparation of environmental and construction documents to bid
a construction project.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4487 HBP 60,264 885 59,379 109,395 168,774
4950 Sales Tax 7,808 115 7,693 14,173 21,866
Total 68,072 1,000 67,072 123,568 190,640
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
5199 Salary Reimb 1,000 1,000 0 0 0
7301 Contract Admin 15,640 0 15,640 0 15,640
7501 Design & Survey 51,432 0 51,432 123,568 175,000
Total 68,072 1,000 67,072 123,568 190,640
Item 12.a. - Page 118
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-15
Project Title:Various Striping, Crosswalks & Sidewalks
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4910 General Fund 2,000 2,000 0 0 0
4950 Sales Tax 51,975 27,936 24,039 55,000 79,039
Total 53,975 29,936 24,039 55,000 79,039
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
5199 Salary Reimb 2,000 2,000 0 0 0
7001 Construction 41,364 21,560 19,804 42,996 62,800
7201 Contingencies 2,511 0 2,511 3,728 6,239
7301 Contract Admin 8,100 6,376 1,724 3,276 5,000
7501 Design & Survey 0 0 0 5,000 5,000
Total 53,975 29,936 24,039 55,000 79,039
Beginning in fiscal year 2008-09, the City has diligently allocated funding towards sidewalk improvements throughout
the City including upgrades and repairs to street striping, crosswalks, sidewalks and cross-gutters. This program is an
annual allocation of funding toward these efforts.
Item 12.a. - Page 119
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-16
Item 12.a. - Page 120
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-17
Project Title:Corporation Yard Stormwater Improvements
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4910 General Fund 1,200 1,200 0 0 0
4950 Sales Tax 32,665 32,665 0 26,300 26,300
Total 33,865 33,865 0 26,300 26,300
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
5199 Salary Reimb 1,200 1,200 0 0 0
7001 Construction 26,450 26,450 0 19,500 19,500
7201 Contingencies 2,645 2,645 0 1,950 1,950
7301 Contract Admin 3,500 3,500 0 1,950 1,950
7501 Design & Survey 70 70 0 2,900 2,900
Total 33,865 33,865 0 26,300 26,300
The City has adopted a Stormwater Management Program (SWMP) to comply with mandatory requirements of the
U.S. Environmental Protection Agency (EPA) National Pollutant Discharge Elimination System (NPDES) Phase II Final
Rule and the State Water Resources Control Board Water Quality Order No. 2003-0005-DWQ, NPDES General Permit
No. CA CAS000004, "Waste Discharge Requirements for Stormwater Discharges from Small Municipal Separate Storm
Sewer Systems" (MS4 General Permit). Best Management Practice M04 (BMP M04) of the SWMP requires that a
Stormwater Pollution Prevention Plan (SWPPP) and Self-Inspection Checklists be developed for the City’s Corporation
Yard to reduce pollutants in stormwater runoff and prevent the discharge of pollutants from the City’s Corporation
Yard. The FY 17/18 project is an opportunity to improve the Corporation yard’s effectiveness at protecting water
resources by protecting materials from rainfall run-on, runoff, and wind dispersal by covering the paint and hazardous
materials area with a roof and by enclosing the area and/or building a berm around it.
Item 12.a. - Page 121
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-18
Project Title:Open Channel Maintenance
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4950 Sales Tax 15,000 1,000 14,000 17,500 31,500
Total 15,000 1,000 14,000 17,500 31,500
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7701 Studies 15,000 1,000 14,000 17,500 31,500
Total 15,000 1,000 14,000 17,500 31,500
The nature flow of the channel at Equestrian Way has become altered due to sedimentation buildup and during
certain rain events floods sections of Oak Park Boulevard and adjacent private properties. This project will consist of
the preparation and procurement of the appropriate permits to allow for maintenance of the open channel at
Equestrian Way in order to reestablish the nature flow line.
Item 12.a. - Page 122
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-19
Project Title:Sierra Drive / Hillcrest Drive Drainage
PROJECT DESCRIPTION
During certain rain events runoff from Sierra Drive enters adjacent properties and causes flooding. This project
consists of the evaluation of drainage solutions for improved stormwater control along Sierra Drive. This could
include the installation of an AC berm and/or relocation of an existing bubble up catch basin. Upon selection of
a solution, the project will include the design and construction of the stormwater improvements.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4950 Sales Tax 20,000 0 20,000 59,600 79,600
Total 20,000 0 20,000 59,600 79,600
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7001 Construction 20,000 0 20,000 42,000 62,000
7201 Contingencies 0 0 0 6,200 6,200
7301 Contract Admin 0 0 0 2,000 2,000
7501 Design & Survey 0 0 0 9,400 9,400
Total 20,000 0 20,000 59,600 79,600
Item 12.a. - Page 123
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-20
Project Title:Annual Vegetation Management Plan
PROJECT DESCRIPTION
This plan will establish a guidance document for maintaining vegetation and tree removals in all creek ways and
drainage areas in the city. The plan will also determine responsibility for vegetation clearance in every drainage
area. The plan will also determine environmental permitting requirements.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4950 Sales Tax 0 0 0 20,000 20,000
Total 0 0 0 20,000 20,000
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7701 Studies 0 0 0 20,000 20,000
Total 0 0 0 20,000 20,000
Item 12.a. - Page 124
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-21
Project Title:Corrugated Metal Pipe (CMP) Lining
PROJECT DESCRIPTION
Design and construction to repair deteriorating corrugated metal pipes (CMP), including Huasna Road at Oro Drive.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4950 Sales Tax 0 0 0 76,300 76,300
Total 0 0 0 76,300 76,300
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7001 Construction 0 0 0 57,000 57,000
7201 Contingencies 0 0 0 5,700 5,700
7301 Contract Admin 0 0 0 5,000 5,000
7501 Design & Survey 0 0 0 8,600 8,600
Total 0 0 0 76,300 76,300
Item 12.a. - Page 125
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-22
Project Title:Lift Station No. 1 Forcemain Replacement
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4825 Developer Contribution 41,180 0 41,180 0 41,180
4930 Sewer Fund 0 0 0 81,100 81,100
Total 41,180 0 41,180 81,100 122,280
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7001 Construction 41,180 0 41,180 0 41,180
7501 Design & Survey 0 0 0 81,100 81,100
Total 41,180 0 41,180 81,100 122,280
The existing forcemain was installed around 1973 and is poor condition. There has been one major and one minor break
in the forcemain in recent years, an indication that the forcemain has exceeded its useful life. The project would replace
approximately 3,070 linear feet of existing 8-inch cast iron forcemain with an 8-inch PVC forcemain. Due to the
complexity and cost of the project, it is recommended that funding is spread over three (3) years beginning in FY 2017-18
and completing in FY 2019-20. The project is listed in the City's Wastewater Master Plan as priority B-1.
Item 12.a. - Page 126
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-23
Project Title:The Pike Sewer Line Replacement
PROJECT DESCRIPTION
The sewer line along The Pike was part of a recent trenchless rehabilitation project through the use of sewer lining.
However, a segment of The Pike's sewer line was damaged beyond the point of lining. Therefore, the segment will
need to be removed and replaced. This project is to be peformed by in-house staff.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4930 Sewer Fund 0 0 0 26,000 26,000
Total 0 0 0 26,000 26,000
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7001 Construction 0 0 0 25,000 25,000
7301 Contract Admin 0 0 0 1,000 1,000
Total 0 0 0 26,000 26,000
Item 12.a. - Page 127
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-24
Project Title:Well Siting Study
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4942 Water Availability 0 0 0 63,200 63,200
Total 0 0 0 63,200 63,200
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7701 Studies 0 0 0 63,200 63,200
Total 0 0 0 63,200 63,200
Recent analyses have identified the need for a new well with at least 800-gpm reliable yield for supply redundancy and to avoid
excessive drawdown in the current main well field (location of Well 1, 3, 4, 7, 8). A well siting study is necessary to determine an
optimal location for a new well within the City to avoid excessive drawdown and in consideration of regional hydrogeology and
pumping patterns. The project is identified in the City's Water System Master Plan as Project B-13.
Item 12.a. - Page 128
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-25
Project Title:Well No. 7 Evaluation
PROJECT DESCRIPTION
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4942 Water Availability 0 0 0 50,000 50,000
Total 0 0 0 50,000 50,000
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7701 Studies 0 0 0 50,000 50,000
Total 0 0 0 50,000 50,000
Over the last two years Well No. 7 has lost 350 gallons per minute of production or 37%. This project will perform an evaluation of
Well No. 7 to better understand the current condition of the undergound well components. The pump will be pulled and examined
along with the well casing to troubleshoot the problem. It is anticipated that result will be that the pump will be repaired or
replaced.
Item 12.a. - Page 129
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-26
Project Title:Water Reservoir No. 7
PROJECT DESCRIPTION
The existing storage in the Rancho Grande zone is not sufficient to meet estimated build-out storage requirements. Also, additional
storage is needed in the Rancho Grande zone to allow Reservoir No. 5 to be taken out of service in order to recoat the tank interior
and perform routine cleaning and maintenance. The project would construct a new steel storage reservoir with a capacity of 500,000
gallons to serve the Rancho Grande zone.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4940 Water Fund 0 0 0 35,000 35,000
4942 Water Facility 0 0 0 74,400 74,400
Total 0 0 0 109,400 109,400
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7501 Design & Survey 0 0 0 109,400 109,400
Total 0 0 0 109,400 109,400
Item 12.a. - Page 130
CITY OF ARROYO GRANDE
CAPITAL IMPROVEMENT PROGRAM
Section 7 – FY 2017-18 Preliminary Budget
7-27
Project Title:Galvanized Service Replacements
PROJECT DESCRIPTION
Staff is requesting allocating $35,000 per year towards this effort and will be funded solely from the Water Enterprise Fund.
Revenue
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Source Budget Projected Over New Funding Total Budget
4940 Water Fund 0 0 0 35,000 35,000
Total 0 0 0 35,000 35,000
Expenditures
FY 2016-17 FY 2016-17 Carry FY 2017-18 FY 2017-18
Account Description Budget Projected Over Expenditures Total Budget
7001 Construction 0 0 0 35,000 35,000
Total 0 0 0 35,000 35,000
It is recommended that the City plan and implement the replacement of all services installed prior to 1980 with new PVC services
within the next 10 years. It is estimated that approximately 2,000 services will need to be replaced.
Water services installed prior to 1980 were primarily constructed of galvanized steel. The useful life of galvanized steel ranges from
approximately 40 to 50 years depending on soil properties. The City reports that an increasing number of galvanized services are
failing; this indicates that the City’s galvanized services have exceeded their useful life. The failed services show evidence of
significant corrosion. The City expects that additional failures will occur.
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Item 12.a. - Page 139
CITY OF ARROYO GRANDE
LOCAL SALES TAX FUND
10-Year Revenue and Expense Plan
Item Adjustments
2016-17
Updated 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Castillo Del Mar Road Improvements 143,075 50,000 - - - - - - - - -
East Branch St Streetscape 130,752 - - - - - - - - - -
Fair Oaks/Orchard Rd Intersection Imp 50,000 - - - - - - - - - -
Halcyon Rd Complete Street Plan Study 7,899 - - - - - - - - - -
Swinging Bridge Reinforcement 202,437 271,100 - - - - - - - - -
Traffic Way Bridge Improvements 13,605 48,200 - - - - - - - - -
Brisco Rd Interchange Project 200,000 200,000 250,000 250,000 250,000 300,000 300,000 300,000 300,000 300,000 300,000
Subtotal Transportation 747,768 569,300 250,000 250,000 250,000 300,000 300,000 300,000 300,000 300,000 300,000
Pavement Management Program 754,305 675,000 700,000 725,000 750,000 775,000 800,000 825,000 825,000 825,000 825,000
Striping and Sidewalk Improvements 51,975 55,000 110,000 115,000 120,000 125,000 125,000 125,000 125,000 125,000 125,000
Oak Park Rehabilitation Project (27,540) 166,069 - - - - - - - - - -
East Grand Ave Sidewalk Imp (33,100) - - - - - - - - - -
Street Maintenance 196,700 242,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Construction Management/Inspection 43,600 104,400 105,300 106,200 107,100 108,100 109,000 110,000 110,000 110,000 110,000
Alpine St Waterline & Street Imp 73,558 - - - - - - - - - -
Soto Complex ADA Improvements Phase II 3,001 - - - - - - - - - -
ADA Ramps @ Mid-Block Crosswalks (3,025) - - - - - - - - - - -
Le Point St Parking Lot (172,052) 461,748 - 50,000 - 100,000 50,000 50,000 - - - -
Le Point St Parking Lot Lease (17,988) 14,400 - - - - - - - - - -
Ash Street & Strother Park Restroom Roofs - 25,000 - - - - - - - - -
Harloe Elem Ped Access Enhancements - 50,000 - - - - - - - - -
Strother Park Parking Lot & Planters - - 30,100 250,800 - - - - - - -
Bridge Preventative Maintenance Plan - 4,600 - - - - - - - - -
Underground Utilities - Grand Ave - - 35,000 - - - - - - - -
Crosswalks in the Village - - 60,000 - - - - - - - -
ADA Pedestrian Buttons - - - - 20,000 - - - - - -
Eng & Traffic Surveys - striping changes - - - - 22,000 - - - -
Subtotal Street/Park Improvements 1,765,356 1,156,000 1,190,400 1,297,000 1,219,100 1,158,100 1,184,000 1,160,000 1,160,000 1,160,000 1,160,000
ATTACHMENT 2
Item 12.a. - Page 140
Item Adjustments
2016-17
Updated 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Clark Properties Drainage Improvements 53,500 - - - - - - - - - -
Vard Loomis Drainage Improvements (25,000) 25,000 - - - - - - - - - -
Retention Basin Maintenance 27,700 28,300 28,800 29,400 30,000 30,600 31,200 31,800 31,800 31,800 31,800
Stormwater Stream Monitoring 17,500 18,000 18,500 19,000 19,500 20,000 20,500 21,000 21,500 21,500 21,500
Sierra/Hillcrest Drainage Design 20,000 59,600 - - - - - - - - -
Corp Yard Stormwater Compliance Plan Implementation - 26,300 27,500 19,000 20,000 20,000 20,000 - - - -
Open Channel Maintenance (Env & Permit)15,000 17,500 29,000 135,000 135,000 - - - - - -
Soto Basin No. 2 Relining - - - - 25,000 120,000 - - - - -
CMP Replacement - Huasna Rd - 76,300 - - - - - - - - -
El Camino Real Drainage Pipe (3,843) 85,057 - - - - - - - - - -
Stormwater Annual Permit & Program 15,000 18,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000
Annual Vegetation Management Plan - 20,000 - - - - - - - - -
Drainage Master Plan Update - - - 100,000 - - - - - - -
CMP Lining - - - 57,500 57,500 45,000 45,000 82,500 82,500 132,500 132,500
South Halcyon Undergrounding - - - - - - - 153,700 - - -
ECR Drainage Pipe Relocation - - - - - - - - 203,000 - -
Subtotal Drainage Improvements 258,757 264,000 122,800 378,900 306,000 254,600 135,700 308,000 357,800 204,800 204,800
Fire JPA 140,500 143,300 146,100 149,100 152,000 155,100 158,200 161,300 161,300 161,300 161,300
Fire Apparatus 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800
Police Senior Officer Position - 186,600 192,200 198,000 203,900 210,000 216,300 222,800 229,500 236,400 243,500
Narcotics Task Force - 24,600 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000
Police Firing Range - - - 120,000 - - - - - - -
Subtotal Public Safety 169,300 383,300 391,100 519,900 408,700 417,900 427,300 436,900 443,600 450,500 457,600
City Hall Debt Service 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Document Imaging - carryover 7,500 - - - - - - - - - -
Council Chambers Accessibility Project 231,691 - - - - - - - - - -
Corporation Yard Upgrades 65,841 - 20,000 20,000 20,000 20,000 20,000 20,000 20,000 - -
Elm Street Community Center Upgrade 160,000 50,000 50,000 50,000 50,000 50,000 - - - -
Citywide Solar Panel Project 3,500 - - - - - - - - - -
Wireless Internet Access 7,707 - - - - - - - - - -
Electric Vehicle Charging Station (337) - - - - - - - - - - -
IT Firewall Replacement 30,000 - - - - - - - - - -
City Hall Safety Improvement Project 15,156 - - - - - - - - - -
Item 12.a. - Page 141
Item Adjustments
2016-17
Updated 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Financial Management System - - 200,000 - - - - - - - -
Fire Station Driveway Repair - 62,600 - - - - - - - - -
Subtotal City Facilities 541,395 82,600 290,000 90,000 90,000 90,000 90,000 40,000 40,000 20,000 20,000
Annual Audit and Sales Tax Report 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500
Contingency 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Subtotal Other 7,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500
Total Expenses 3,490,076 2,487,700 2,276,800 2,568,300 2,306,300 2,253,100 2,169,500 2,277,400 2,333,900 2,167,800 2,174,900
Projected Revenue 2,241,900 2,331,600 2,354,900 2,354,900 2,378,400 2,378,400 2,402,200 2,426,200 2,462,600 2,511,900 2,562,100
Revenue Over/(Under) Expenses (1,248,176) (156,100) 78,100 (213,400) 72,100 125,300 232,700 148,800 128,700 344,100 387,200
Beginning Fund Balance 1,709,361 461,185 305,085 383,185 169,785 241,885 367,185 599,885 748,685 877,385 1,221,485
Estimated Ending Fund Balance 461,185 305,085 383,185 169,785 241,885 367,185 599,885 748,685 877,385 1,221,485 1,608,685
% Fund Balance of Estimated Revenues 21%13%16%7%10%15%25%31%36%49%63%
Item 12.a. - Page 142