CC 2019-02-26_11a Mid Year Budget Report_FY18-19
MEMORANDUM
TO: CITY COUNCIL
FROM: JIM BERGMAN, CITY MANAGER
NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF FISCAL YEAR 2018-19 MID-YEAR BUDGET
REPORT
DATE: FEBRUARY 26, 2019
SUMMARY OF ACTION:
Consider adjustments to the City’s budget at the mid-point of the fiscal year.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Additional appropriations or budget adjustments are reflected in the ending fund balances
for all funds as detailed in Schedule A attached to the Mid-Year Budget Report. The
recommended budget adjustments are anticipated to have a minimal impact on staff
workload.
RECOMMENDATION:
It is recommended the City Council:
1. Approve detailed budget adjustments and requests for additional appropriations listed in
the Mid-Year Budget Report;
2. Approve Schedule A attached to the Mid-Year Budget Report; and
3. Adopt a Resolution approving compensation adjustments for part-time employees and
approval of the updated Citywide combined salary schedule.
BACKGROUND:
Each year the City Council adopts a budget, which commits resources to the
accomplishment of its policies. The Administrative Services Department prepares
periodic budget updates for the City Council.
The purpose of the City's Mid-Year Budget Report is to:
• Compare revenues received and expenditures made to budgeted amounts to
determine appropriate adjustments.
• Provide a link between the City budget, the financial records, and the independent
financial audit.
• Compare current revenues and expenditures against the prior fiscal year.
Item 11.a. - Page 1
CITY COUNCIL
CONSIDERATION OF FISCAL YEAR 2018-19 MID-YEAR BUDGET REPORT
FEBRUARY 26, 2019
PAGE 2
ANALYSIS OF ISSUES:
As detailed in the attached Mid-Year Budget Report, the City is currently facing a mixed
fiscal picture. Revenues in many General Fund categories are increasing and economic
indicators are generally favorable. The City has strong reserves and a diverse revenue
stream, which will be important in facing the upcoming challenges associated with
increasing retirement costs, deferred infrastructure maintenance, and other unmet needs.
The current projected ending General Fund Balance for June 30, 2019 is $3.4 million. This
projected fund balance represents 16% of appropriations, which exceeds the City Council
minimum fund balance goal of 15%. The decrease in the projected fund balance is largely
due to the $3,000,000 CalPERS prepayment made in July 2018. The projected Fund
Balance assumes revenues are received exactly as budgeted, all budget expenditures
are made, and all capital transfers required by the Capital Improvement Plan Program
are completed. Historically, the General Fund has not been required to fund all budgeted
capital transfers and expenditures at year-end are traditionally less than budgeted.
As described more fully in the Mid-Year Budget Report, staff is recommending several
adjustments to the FY 2018-19 budget in order to address needs that were unanticipated
and necessary. In addition, the Report includes budget adjustments directed by the City
Council to date.
Historically, the Mid-Year Report is based on the completed Comprehensive Annual
Financial Report (CAFR) or audited financial statements. This year, due to capacity
constraints, the audit is not yet complete and the CAFR has not been presented to the
City Council. No significant variance in any fund balance is anticipated with the completion
of this work, which is expected to be completed in the next month.
ALTERNATIVES:
1. Approve the recommended budget adjustments, Schedule A of the Mid-Year
Budget Report, making compensation adjustments for the part-time salary
employees, and approving the updated City of Arroyo Grande combined salary
schedule;
2. Modify and approve the recommended budget adjustments, Schedule A of the
Mid-Year Budget Report, making compensation adjustments for the part-time
salary employees, and approving the updated City of Arroyo Grande combined
salary schedule;
3. Do not approve the recommended budget adjustments, Schedule A, or the part-
time salary employees, and approving the updated City of Arroyo Grande combined
salary schedule;
4. Provide direction to staff
ADVANTAGES:
The Mid Year Budget Report provides an updated review of the City finances in the current
fiscal year, allocates additional funding to meet unanticipated needs and complete projects,
and maintains a fund balance that exceeds the City’s minimum reserve policy amount.
Item 11.a. - Page 2
CITY COUNCIL
CONSIDERATION OF FISCAL YEAR 2018-19 MID-YEAR BUDGET REPORT
FEBRUARY 26, 2019
PAGE 3
DISADVANTAGES:
A slight reduction of the general fund balance will be incurred if recommendations are
approved.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 11.a. - Page 3
City of
Arroyo Grande
Administrative Services Department
MID-YEAR BUDGET REPORT
FISCAL YEAR 2018-2019
Item 11.a. - Page 4
Table of Contents
Overview ........................................................................................................................................................................3
Summary of Key Points................................................................................................................................................3
Budget Changes Approved To-Date ..........................................................................................................................4
Mid Year Budget Changes ...........................................................................................................................................4
General Fund Expenditures: ...................................................................................................................................5
General Fund Revenues:..........................................................................................................................................8
Other Funds: ..............................................................................................................................................................8
General Fund Overview ...............................................................................................................................................8
General Fund Revenues ...............................................................................................................................................10
General Fund Expenditures ........................................................................................................................................11
Other Funds ...................................................................................................................................................................13
Attachments ...................................................................................................................................................................13
Item 11.a. - Page 5
Overview
The City’s Mid-Year Report is prepared to compare the revenues and expenditures occurring during the first six months of
the fiscal year against budgeted amounts to determine appropriate adjustments; to provide links between the City budget,
the financial records, and the independent financial audit and; to compare revenues earned and expenses made during the
first six months of the Fiscal Year (FY) 2018-19 against the FY 2017-18 figures. This information is provided in the following
format:
Schedule A: The starting point is the FY 2017-18 ending fund balances, which is also the beginning Available Fund Balance
for the FY 2018-19. Combining the beginning Available Fund Balances with the estimated revenues, transfers, and
appropriations adopted in the Biennial Budget and this report, provides the estimated ending fund balances.
As a result of a comprehensive review, adjustments are recommended where actual receipts and disbursements are
materially different from the budgeted amounts. Although budget adjustments are recommended across several City funds,
typically the emphasis of the Mid-Year Budget Report is directed at the General Fund. The General Fund is deemed to be
the most critical as it provides most services commonly associated with government (i.e., public safety, recreation, parks,
building, public works, planning, etc.) and is limited primarily by tax-generated revenues.
Historically, the Mid-Year Report is based on the completed Comprehensive Annual Financial Report (CAFR) or audited
financial statements. This year, due to capacity constraints, the audit is not yet complete and the CAFR has not been
presented to the City Council. No significant variance in any fund balances is anticipated with the completion of this work,
which is expected to be completed in the next month.
Summary of Key Points
• The City is currently facing a mixed fiscal picture. Revenues in many General Fund categories are increasing and
economic indicators are generally favorable.
• Minor adjustments to the budget are recommended at this time. The only significant new initiative or emergency issue
that is included in this report is the City Hall roof.
Item 11.a. - Page 6
• The City Council has established an Undesignated General Fund Balance goal of 20% of annual appropriation with a
minimum goal of 15%. The City’s Undesignated General Fund Balance represents the available resources to provide
funding for future contingencies such as earthquakes, civil unrest, economic fluctuations, major infrastructure repairs
and investment in capital for improved productivity and efficiencies. Inadequate reserves increase financial risk,
negatively impact cash flow, and reduce the City’s ability to attract and sustain economic development and growth.
The current projected ending General Fund Balance for June 30, 2019 is $3.4 million. This projected fund balance represents
16% of appropriations, which exceeds the City Council minimum fund balance goal of 15%. The decrease in the projected fund
balance is largely due to a $3,000,000 CalPERS prepayment made in July 2018. The projected General Fund Balance assumes
revenues are received exactly as budgeted, all budget expenditures are made, and all capital transfers required by the
Capital Improvement Plan Program are completed. Historically, the General Fund has not been required to fund all
budgeted capital transfers and expenditures at year-end are traditionally less than budgeted.
Budget Changes Approved To-Date
Various budget changes have been approved by the Council or City Manager, as appropriate, since the adoption of the
original Budget in June 2018 and reflect changes made through December 31, 2018. These include minor adjustments to
capital projects and operating budgets.
Mid-Year Budget Changes
As part of the mid-year process, departments were asked to review their current budgets and determine if any adjustments
should be proposed in this report. Departments have been asked to closely monitor their budgets and spend only what is
necessary. At this time, adjustments are recommended to the General Fund and Water Fund departmental budgets that are
necessary due to timing considerations, unanticipated increases, increases that are supported by additional revenues, and one-
time project funding.
Item 11.a. - Page 7
General Fund Expenditures:
Summary of Requests:
Coverage for employee medical leave $24,400
Annual Membership to the League of CA Cities 6,730
Election Costs 8,215
Contract Engineering Services 43,200
Fire Station 1 Generator repair 4,100
Tree work for fire hazard fuel modification 12,000
Repair to 10-year-old riding mower 3,500
City Hall Roof replacement 60,000
Animal Services Shelter Increase 20,000
Part-time staff salary increase 15,000
Total General Fund $197,145
As summarized above, additional expenditures for FY 2018-19 totaling $197,145 in the General Fund are recommended.
Additional information is provided for each request below.
• Administrative Services – The Department has an employee taking an extended medical leave. Contractual services
will be required in order to continue providing administrative support services to City staff and the community. It is
anticipated that these costs will not exceed $24,400.
• Non-Departmental – The Annual Membership to the League of California Cities was not budgeted in the FY 2018-19
budget; however, it has been determined that membership is beneficial to the City. The League is the leading local
control advocate for California’s cities, providing legislative and ballot measure advocacy, legal advocacy, leadership
and training opportunities, and providing relevant news and information related to city fiscal issues and policy. This
cost is proposed to be added back into the budget in the amount of $6,730.
Item 11.a. - Page 8
• Legislative and Information Services – The Department originally budgeted $18,000 for the November 2018 Municipal
Election based on historical costs. The City just recently received the statement of charges from the San Luis Obispo
County Clerk-Recorder totaling $26,715, a difference of $8,215. The County has stated that the overall cost of the 2018
Consolidated General Election increased from November 2016 for various increases in printing costs, postage, poll rentals and
labor. In addition, the cost of the election is shared proportionally among the jurisdictions consolidating their elections with the
County, and in 2018, there were a lower number of jurisdictions, races, and measures on the ballot than in 2016, thereby resulting
in an increase in the cost per registered voter for the City’s election.
• Community Development – The Engineering Division faced a prolonged staff recruitment during times of heavy
workload and hired MNS Engineering for plan check engineering services totaling $43,200. The Assistant Engineer
position was filled in late October; however, the part-time contract engineer stayed on through January to help assist
with a smooth transition within the department.
• Public Works –
- The generator at Arroyo Grande Fire Station 1 continues to have issues and is in need of a new injector pump to
continue operating smoothly. The estimated cost is $4,100.
- Due to the recent fires within the State, City staff evaluated several urban/wildland interface areas to assess
vulnerability to similar fire threats. The City has also had an increase of fire clearance calls that need to be addressed
along the James Way Habitat. Additionally, staff has received estimates for other necessary tree work that would
lessen the City’s exposure of falling trees onto private property at Leisure Gardens. This is an ongoing trend since
tree maintenance has been deferred over the last 7-8 years due to staffing and budget levels. The cost of this one-
time maintenance is $12,000.
- The current Toro riding mower had a major breakdown costing $7,100 to repair, which is the majority of the total
budgeted machinery maintenance for the year. The mower is the most used piece of equipment in the Parks Division.
The request for $3,500 is to continue to complete any future maintenance on the Parks Division equipment.
- Maintenance for the City Hall roof has been deferred for the past 9 years since the City acquired the building.
Throughout the drought, roof maintenance was managed effectively with the very limited amounts of rain received.
Since the 2017 rain storms and continued rain accumulations in 2018 and 2019, the building has experienced
continued leaks. With continued rain in the future, this has been identified as a priority due to the potential for
water and environmental damage to the City’s primary data center located in the City Hall building. Damage to
the data center would result in expensive network and server equipment replacement costs, potential data loss,
Item 11.a. - Page 9
and a significant reduction in staff productivity. In addition, roofing issues have already resulted in ceiling
damage in multiple work areas requiring drywall repair and replacement, and further damage would result in
additional building repair costs and a potential need to relocate staff to alternate work locations while work is
completed. The estimated roof replacement cost is $60,000.
• Police Department – In August 2018, the City Council approved the Agreement for Allocation of Construction and
Financing Costs for a Countywide Animal Services Shelter. The increase to this fiscal year’s budget is an additional
$20,000.
• Part-time position compensation adjustments – In December 2018, the Council approved compensation adjustments
for four part-time positions due to the minimum wage increase effective January 1, 2019. Staff noted at that time that
further analysis would be conducted on this issue to be reviewed during the Mid-Year budget process.
- The adjustments approved in December increased 4 minimum wage positions which resulted in the elimination of
the differential to those positions that are part of a job series. For example, currently, the AM/PM Assistant I
position Step A starts at $12.00 and the AM/PM Assistant II position Step A starts at $12.02.
- Historically, compensation adjustments for part-time positions have been considered in July of each fiscal year
along with the unrepresented Management group. This action traditionally falls in line with union group
negotiations as well as providing consistency in the fiscal year budget process.
- In 2017, the State Minimum Wage Order went into effect stating that in January of each year through 2022, minimum
wage would increase by one dollar each year until the minimum wage reaches $15.00/hour. As a result,
compensation adjustments for minimum wage part-time positions is occurring in January and compensation
adjustments for all other part-time positions is occurring in July, which is impacting the established differential
between salary steps.
- The proposed adjustment would be to reestablish differentials in like positions with an increase of approximately
9.09%, in line with the increase from $11/hour to $12/hour, as well as a 2% COLA for all other positions where
applicable. This year, the proposed change in salary schedule would be effective March 8, 2019, the first day of the
payroll period following this City Council meeting, in lieu of July 12, 2019. The proposed increase for the remainder
of the fiscal year will not exceed $15,000.
- Future consideration of compensation adjustments for all part-time positions would then occur once a year in
January.
Item 11.a. - Page 10
General Fund Revenues:
Additional budgeted revenues are proposed totaling $353,000 for FY 2018-19 in the General Fund. Significant variances
are described below.
• Sales Tax – Based on the most recent estimates from the City’s sales tax consultant, an increase of $36,000 is projected.
• Telecommunication Site Leases – Due to the approval of two additional cell site leases, an increase in revenues of
$65,000 is projected.
• Building & Planning Permits and Fees – Due to the increase in activity, an increase in building and planning revenues
of $95,000.
• Sale of equipment/materials – As previously approved by the City Council, the Mid-Year budget reflects the sale of
surplus police vehicles, estimated at $35,000. The proceeds of the sale have been allocated to the purchase of new light
bars, sirens and other equipment needed for the replacement police patrol fleet.
Other Funds:
Local Use Tax Fund (Fund 218)
Based on past trends, revenues are flat when compared to original estimates. Staff recommends making no changes at this
time.
In general, revenues and expenditures in all other funds are on target with projections and prior year trends. No other
adjustments are required at this time.
General Fund Overview
Revenues are currently 39% collected and expenditures are 53% spent. This reflects the fact that not all revenues and
expenditures occur evenly throughout the fiscal year. Significant variances are discussed later in the report, but in general,
this trend is consistent with prior years. As reflected on the following chart, collecting approximately 39% of the General
Fund revenues by the mid-point of the fiscal year is consistent with past trends.
Item 11.a. - Page 11
After Mid-Year adjustments are recorded, the June 30, 2019, fund balance will be approximately $3.4 million, if all budget
projections are fulfilled. However, at June 30, 2019, the City may find that revenues have not met the budgeted projections
and not all budgeted appropriations will be spent as year-end actual expenditures are traditionally less than budgeted
amounts.
Shown on the following page is an overview of the revenues, expenses, and transfers for Fiscal Years 2018-19 and 2017-18
as of the mid-point of each fiscal year. As reflected, both revenues and expenditures are higher in the current fiscal year
than they were at the same point in time last year.
Item 11.a. - Page 12
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
-
-
Revenue:% Collected at Mid Vear
- -----39% ,--------,
40%
,--------, ,--------, ,____
40% 40%
....--Fl ....--H
~ ,____ H
2018-19 2017-18 2016--17 2015-16
Mid Year Year End
.. ,__
39% ,__
,__
2014-15
General Fund FY 2018-19 FY 2017-18 Variance
Revenues:
Mid-Year Actual $5,867,010 $5,496,889 $370,121
Mid-Year Transfers 1,270,050 1,328,640 ($58,590)
Total 7,137,060 6,825,529 $298,144
Expenditures:
Mid-Year Actual 11,666,207 8,864,356 $2,801,851
Total 11,666,207 8,864,356 2,801,851
General Fund Revenues
Total General Fund revenue collections are at 39% with half of the year complete. This is below 50% because certain
revenues have a delay in when they are received by the City; specifically, it only represents four months of Sales Tax
revenue, five months of Transient Occupancy Tax (TOT) revenue and four months of Franchise Fee revenue. The table on
the following page presents a comparison of the top revenue accounts. Because the top revenue sources account for
approximately 75% of total General Fund revenues, changes here can have profound impacts. The mid-year budget
includes additional revenues of $353,000 for FY 2018-19 discussed previously.
Actual
Title Budget Actual %Budget Actual %Change
Property Tax 6,717,600$ 2,479,846$ 37% 6,387,800$ 2,604,051$ 41% (124,205)
Sales & Use Tax 3,955,200 1,143,422 29% 3,800,000 996,215 26% 147,207
Transient Occupancy Tax 1,126,000 447,428 40% 995,900 466,333 47% (18,905)
Franchise Fees 624,200 170,816 27% 612,000 141,056 23% 29,760
Children in Motion 440,000 261,362 59% 360,000 210,537 58% 50,825
Telecom Site Leases 315,000 159,900 51% 235,000 125,750 54% 34,150
Building Permits 322,400 188,300 58% 260,800 133,825 51% 54,475
Planning Fees 450,700 281,598 62% 335,600 173,860 52% 107,738
Total 13,951,100$ 5,132,672$ 37% 12,257,700$ 4,570,565$ 37% 281,045$
Mid-Year FY 2018-19 Mid-Year Prior Fiscal Year
Item 11.a. - Page 13
• Property Tax – Property tax trends are consistent with the same period last year and budgeted revenues are expected
to be met.
• Sales Tax – Sales tax is slightly higher than projected and higher than the same period last fiscal year and an increase
to the budgeted revenue is proposed.
• Building Permits & Planning Fees – The increase in these revenue sources reflect activity in the construction industry
as well as the fee increases adopted by the City Council. These revenues are difficult to predict and staff will continue
to closely monitor them.
• All other variances are within normal ranges.
General Fund Expenditures
Most departmental expenses are under the 50% budget mark with total FY 2018-19 expenses at 53% of budget. Individual
department/division differences between the current and prior fiscal year are highlighted in the table shown on the next
page.
Item 11.a. - Page 14
Actual
Title Budget Actual %Budget Actual %Change
City Manager 508,700$ 190,253$ 37% 433,166$ 195,969$ 45%(5,716)$
Legislative & Info Svcs 455,400 181,617 40% 447,900 209,618 47% (28,001)$
Retirees 167,600 74,531 44% 235,000 62,072 26% 12,459$
City Attorney 283,200 101,368 36% 305,225 127,278 42% (25,910)$
Admin. Services 884,400 504,337 57% 915,200 413,685 45% 90,652$
Planning 927,321 236,670 26% 1,006,359 429,861 43% (193,191)$
Information Technology 639,243 325,841 51% 607,900 352,840 58% (26,999)$
Non Departmental 3,776,844 2,210,897 59% 3,334,100 2,276,800 68% (65,903)$
Police 9,660,274 5,913,945 61% 6,802,300 2,972,466 44% 2,941,479$
Building & Life Safety 464,800 194,051 42% 386,700 197,945 51% (3,894)$
Engineering 852,982 401,848 47% 696,566 287,372 41% 114,476$
Recreation Services 1,086,700 447,233 41% 1,033,900 445,094 43% 2,139$
Public Works 2,118,282 883,617 42% 2,018,812 893,356 44% (9,739)$
Total 21,825,746$ 11,666,207$ 53% 18,223,128$ 8,864,356$ 49% 2,801,851$
Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year
• Administrative Services – the majority of this increase reflects payment for accrued leave for an employee that left in
November 2018.
• Non Departmental – the variance from the prior year reflects timing of payments made for the City’s contribution to
Five Cities Fire Authority as well as the annual payments made in July for Liability Insurance premiums.
• Police – The majority of this increase reflects the CalPERS prepayment of $3,000,000 made in July 2018.
• All other variances are within a normal range.
Item 11.a. - Page 15
Other Funds
Local Use Tax Fund (Fund 218)
This fund has been established to account for the ½ cent sales tax increase that was approved in November 2006. With four
months of sales, this revenue source is at 27%. Based on past trends, revenues are on track.
Water and Sewer Funds
The City lifted the Stage 1 Water Emergency in 2017 and revenues in the Water and Sewer Funds have steadily increased.
This increase was anticipated; however, it is difficult to predict whether the change in water use behavior in the community
is permanent or a short-term response to the drought conditions. Year-to-date revenues for the current fiscal year continue
to be higher than the prior year for both the Water Fund and Sewer Fund. Revenues for the Sewer Fund are estimated to be
on track as projected. The Water Fund is projected to see $52,000 in higher revenues. The Water Division is requesting an
additional $10,000 to increase the water treatment service account. The $10,000 increase is for Federal unregulated
contaminant monitoring the City is required to do this year. Staff continues to closely monitor the City’s water supply and
demand and will return to the Council for any future actions necessary in order to appropriately respond to changing
circumstances.
Attachments
A brief overview of the attached schedules is provided to inform the reader of the purpose of each schedule.
•Schedule A - Fund Balance. This schedule is provided to incorporate prior year fund balance into the current year and
to summarize the FY 2018-19 budget adopted by the City Council. This schedule includes adjustments that have
previously been approved by the City Council and includes the current requested adjustments in total.
•General Fund Summary. This schedule provides a summary of the revenues, expenditures and fund balance with
actual results for the prior fiscal year as well as the current FY 2018-19 Budget and proposed amended balances for FY
2018-19.
Item 11.a. - Page 16
Fund Balance
All Funds Operating Budget
2018-19 Mid-Year Budget Update
Schedule A
Estimated Estimated
Total Total
Available Available
Fund Balance Original Adjustment Operating Operating FY 2017-18 Budgeted Adjustments to Fund Balance
July 1, 2018 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2019
General Fund
010 General Fund:7,112,147$ $15,206,200 353,428 $2,565,100 $181,030 $881,976 $20,564,900 197,145.00 $3,411,824
Special Revenue Funds:
210 Fire Protection Impact Fees $182,838 $21,000 $0 $0 $0 $0 $0 $0 $203,838
211 Public Access Television 47,026 36,200 0 0 0 0 0 0 83,226
212 Police Protection Impact Fees 43,856 5,300 0 0 0 0 0 0 49,156
213 Park Development Fees 1,008,502 91,000 0 0 0 0 0 0 1,099,502
214 Park Improvement Fees 222,726 50,900 0 0 86,500 10,914 25,000 0 151,212
215 Recreation Community Center 42,676 3,700 0 0 0 33,467 0 0 12,909
216 Grace Lane Assessment District 58,223 10,600 0 0 3,100 0 13,300 0 52,423
217 Landscape Maintenance District 6,254 5,900 0 0 2,000 0 5,700 0 4,454
218 Local Use Tax Fund 2,013,694 2,282,600 0 0 1,763,700 1,858,157 244,900 0 429,537
219 Parkside Assessment District 447,054 46,500 0 0 6,100 0 30,000 0 457,454
220 Streets 184,153 759,100 0 346,400 398,700 0 706,800 0 184,153
222 Traffic Signal 920,252 36,000 0 0 0 0 0 0 956,252
223 Traffic Circulation 132,410 500 0 0 0 0 0 0 132,910
224 Transportation Facility Impact 2,099,727 85,000 0 0 0 1,685,808 15,000 0 483,919
225 Transportation 33,624 260,700 0 0 240,700 0 20,000 0 33,624
226 Water Neutralization Impact 225,869 57,000 0 0 0 34,749 106,000 0 142,120
230 Construction Tax 29 0 0 0 0 0 0 0 29
231 Drainage Facility 5,696 0 0 0 0 5,487 0 0 209
232 In-Lieu Affordable Housing 599,177 206,500 0 0 0 48,770 75,000 0 681,907
233 In-Lieu Underground Utility 19,163 0 0 0 0 0 0 0 19,163
240 Tourism Business Improvement Dis 316,457 206,700 0 5,000 3,000 0 232,000 0 293,157
241 Water Availability Fund 1,714,072 57,000 0 0 0 888,684 0 0 882,388
250 CDBG Grant Funds (54,943)0 0 0 0 0 0 0 (54,943)
271 State COPS Block Grant 181,137 120,800 0 0 22,300 0 100,000 0 179,637
Total Special Revenue Funds $10,449,673 $4,343,000 0 $351,400 $2,526,100 $4,566,037 1,573,700 $0 $6,478,236
City of Arroyo Grande
Item 11.a. - Page 17
Fund Balance
All Funds Operating Budget
2018-19 Mid-Year Budget Update
Schedule A
Estimated Estimated
Total Total
Available Available
Fund Balance Original Adjustment Operating Operating FY 2017-18 Budgeted Adjustments to Fund Balance
July 1, 2018 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2019
City of Arroyo Grande
Capital Project Funds:
350 Capital Improvement Fund $19,894 $3,425,600 $21,117,089 $1,907,900 $0 $20,228,417 $6,143,300 $0 $98,767
Total Capital Project Funds $19,894 $3,425,600 $21,117,089 $1,907,900 $0 $20,228,417 $6,143,300 $0 $98,767
Enterprise Funds:
612 Sewer $1,265,430 $1,082,300 $0 $251,900 $0 $0 $789,800 $0 $1,809,830
634 Sewer Facility 493,620 42,000 0 0 251,900 0 0 0 283,720
640 Water Fund 3,382,026 6,549,000 0 74,400 5,391,600 291,090 1,638,100 10,000 2,674,636
641 Lopez Water 1,702,312 0 0 3,576,800 0 0 3,576,800 0 1,702,312
642 Water Facility 446,156 60,000 0 0 74,400 0 0 0 431,756
Total Enterprise Funds $7,289,544 $7,733,300 $0 $3,903,100 $5,717,900 $291,090 $6,004,700 $10,000 $6,902,254
Trust and Agency Fund:
751 Downtown Parking 2,083 11,000 0 0 3,600 0 4,400 5,083
Total Trust & Agency Fund $2,083 $11,000 $0 $0 $3,600 $0 $4,400 $0 $5,083
Grand Total All Funds $24,873,341 $30,719,100 $21,470,517 $8,727,500 $8,428,630 $25,967,519 $34,291,000 $207,145 $16,896,163
Item 11.a. - Page 18
2015-16 2016-17 2017-18 ORIGINAL AMENDED
ITEM ACTUAL ACTUAL ACTUAL (Unaudited)BUDGET BUDGET
Beginning Fund Balance 5,946,521$ 7,059,746$ 6,730,032$ 7,112,147$ 7,112,147$
Revenues:
Revenues 13,951,297 14,073,887 15,236,807 15,206,200 15,559,628
Transfers In 2,579,125 2,348,804 2,665,316 2,565,100 2,565,100
Total Revenues 16,530,422 16,422,691 17,902,123 17,771,300 18,124,728
Expenditures:
Salaries and Benefits 9,630,928 9,447,375 10,501,295 14,444,300 14,205,200
Services and Supplies 5,018,369 5,992,578 6,112,099 6,808,561 7,155,951
Debt Service 201,391 129,523 269,961 166,000 167,740
Capital Outlay 344,807 360,395 329,637 115,130 115,130
Transfers Out 221,702 426,234 307,017 181,030 181,030
Expenditure Savings
Total Expenditures 15,417,197 16,356,105 17,520,008 21,715,020 21,825,051
Total Operating Increases (Decreases)1,113,225 66,586 382,114 (3,943,720) (3,700,323)
Reserved for carryover (396,300) - - -
Total Adjustments to Fund Balance 1,113,225 (329,714) 382,114 (3,943,720) (3,700,323)
Available Fund Balance 7,059,746$ 6,730,032$ 7,112,147$ 3,168,426$ 3,411,824$
2018-19
GENERAL FUND SUMMARY - Mid-Year Budget Report
Item 11.a. - Page 19
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING COMPENSATION
ADJUSTMENTS FOR PART-TIME EMPLOYEES AND
APPROVAL OF THE UPDATED CITYWIDE COMBINED
SALARY SCHEDULE
WHEREAS, the City Council of the City of Arroyo Grande (“City”) deems it in the best
interest of the City and in order to ensure compliance with State law, that compensation
for part-time employees be adjusted as hereinafter provided.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande
that:
1. Salary ranges for part-time employee classifications shall be adjusted as designated
in Exhibit “A” attached hereto and incorporated herein by this reference, to be effective
for the pay period beginning March 8, 2019.
2. All other part-time employee salary and benefit terms and conditions remain in full
force and effect.
3. The Citywide Combined Salary Schedule as designated in Exhibit “B” attached hereto
and incorporated herein by this reference, to be effective March 8, 2019, reflecting the
above described changes is hereby adopted.
On motion of Council Member , seconded by Council Member
, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 26th day of February, 2019.
Item 11.a. - Page 20
RESOLUTION NO.
PAGE 2
CAREN RAY RUSSOM, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 11.a. - Page 21
EXHIBIT A
POLICE DEPARTMENT Step A Step B Step C Step D
Designated Level I Reserve Office $32.30 $33.92 $35.61 $37.39
Fleet & Equipment Technician $23.58 $24.76 $26.00 $27.30
Training Technician $23.58 $24.76 $26.00 $27.30
Neighborhood Services Technician $21.04 $22.09 $23.20 $24.36
Property & Evidence Technician $22.09 $23.20 $24.36 $25.58
Police Reserve Officer $25.84 $27.13 $28.49 $29.91
Records Clerk $19.52 $20.50 $21.52 $22.60
Police Reserve Officer Trainee $22.50 $23.63 $24.81 $26.05
Administrative Intern (Cadet) $13.04 $13.69 $14.37 $15.09
RECREATION SERVICES DEPARTMENT
Volunteer and Program Coordinator $23.79 $24.98 $26.23 $27.54
Pre School Teacher $15.86 $16.65 $17.49 $18.36
AM/PM Teacher $15.86 $16.65 $17.49 $18.36
AM/PM Assistant Teacher $14.42 $15.14 $15.90 $16.70
AM/PM Assistant II $13.11 $13.77 $14.46 $15.18
AM/PM Assistant I $12.00 $12.60 $13.23 $13.89
Senior Facility Attendant $13.11 $13.77 $14.46 $15.18
Facility Attendant $12.00 $12.60 $13.23 $13.89
Sports Facility Attendant $12.00 $12.60 $13.23 $13.89
MISCELLANEOUS
Administrative Intern $13.04 $13.69 $14.37 $15.09
Administrative Secretary $22.30 $23.41 $24.58 $25.81
Associate Engineer $32.13 $33.74 $35.42 $37.19
Assistant Engineer $29.21 $30.67 $32.21 $33.82
Associate Planner $30.13 $31.64 $33.22 $34.88
Assistant Planner $27.85 $29.24 $30.70 $32.24
Building Permit Technician $23.93 $25.13 $26.38 $27.70
Planning Technician $23.93 $25.13 $26.38 $27.70
Custodian $16.18 $16.99 $17.84 $18.73
Maintenance Worker $16.18 $16.99 $17.84 $18.73
Sr. Office Assistant $19.52 $20.50 $21.52 $22.60
Office Assistant II $18.54 $19.47 $20.44 $21.47
Office Assistant I $15.86 $16.65 $17.49 $18.36
Student Intern (seasonal)$12.00
PART-TIME EMPLOYEES SALARIES
Effective 03-08-2019
HOURLY RATE
Item 11.a. - Page 22
GROUP: SEIU
Position ABCDE
Office Assistant I Biweekly 1,398.87 1,468.82 1,542.26 1,619.37 1,700.34
Monthly 3,030.89 3,182.44 3,341.56 3,508.64 3,684.07
Annual 36,370.72 38,189.26 40,098.72 42,103.66 44,208.84
Accounting Clerk I Biweekly 1,433.85 1,505.54 1,580.82 1,659.86 1,742.85
Monthly 3,106.67 3,262.00 3,425.10 3,596.35 3,776.17
Annual 37,279.99 39,143.99 41,101.19 43,156.25 45,314.06
Maintenance Worker I Biweekly 1,506.43 1,581.76 1,660.84 1,743.89 1,831.08
Monthly 3,263.94 3,427.14 3,598.49 3,778.42 3,967.34
Annual 39,167.29 41,125.66 43,181.94 45,341.03 47,608.09
Office Assistant II Biweekly 1,544.10 1,621.30 1,702.36 1,787.48 1,876.86
Monthly 3,345.54 3,512.82 3,688.46 3,872.88 4,066.52
Annual 40,146.47 42,153.80 44,261.49 46,474.56 48,798.29
Accounting Clerk II Biweekly 1,662.82 1,745.96 1,833.26 1,924.92 2,021.17
Maintenance Worker II Monthly 3,602.78 3,782.92 3,972.06 4,170.67 4,379.20
Annual 43,233.36 45,395.03 47,664.78 50,048.02 52,550.42
Administrative Secretary Biweekly 1,835.44 1,927.22 2,023.58 2,124.76 2,230.99
Monthly 3,976.80 4,175.63 4,384.42 4,603.64 4,833.82
Annual 47,721.54 50,107.62 52,613.00 55,243.65 58,005.83
Senior Accounting Clerk Biweekly 1,881.33 1,975.40 2,074.17 2,177.87 2,286.77
Building Permit Tech.Monthly 4,076.21 4,280.03 4,494.03 4,718.73 4,954.66
Plan/Eng Permit Tech Annual 48,914.58 51,360.31 53,928.32 56,624.74 59,455.98
Sports Facility Coord.
Recreation Coordinator
Maintenance Worker III
Water Services Worker Biweekly 1,976.57 2,075.40 2,179.17 2,288.13 2,402.54
Monthly 4,282.57 4,496.70 4,721.54 4,957.61 5,205.49
Annual 51,390.88 53,960.42 56,658.44 59,491.37 62,465.94
Fleet Maint. Coordinator Biweekly 2,076.64 2,180.47 2,289.49 2,403.97 2,524.16
Monthly 4,499.38 4,724.35 4,960.56 5,208.59 5,469.02
Annual 53,992.54 56,692.17 59,526.78 62,503.12 65,628.27
Public Works Lead Person Biweekly 2,128.55 2,234.98 2,346.73 2,464.07 2,587.27
Monthly 4,611.86 4,842.46 5,084.58 5,338.81 5,605.75
Annual 55,342.36 58,109.47 61,014.95 64,065.70 67,268.98
EXHIBIT B
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03-08-2019
Item 11.a. - Page 23
GROUP: SEIU
Position ABCDE
GIS Technician Biweekly 2,292.22 2,406.83 2,527.17 2,653.53 2,786.21
Monthly 4,966.47 5,214.80 5,475.54 5,749.31 6,036.78
Annual 59,597.66 62,577.55 65,706.43 68,991.75 72,441.33
Recreation Supervisor Biweekly 2,349.52 2,467.00 2,590.35 2,719.87 2,855.86
Monthly 5,090.63 5,345.17 5,612.42 5,893.05 6,187.70
Annual 61,087.61 64,141.99 67,349.09 70,716.54 74,252.37
Citywide Fleet Coordinator Biweekly 2,408.26 2,528.67 2,655.11 2,787.86 2,927.26
Monthly 5,217.90 5,478.80 5,752.73 6,040.37 6,342.39
Annual 62,614.80 65,745.54 69,032.82 72,484.46 76,108.68
Program Analyst Biweekly 2,530.18 2,656.69 2,789.52 2,929.00 3,075.45
Assistant Engineer Monthly 5,482.06 5,756.16 6,043.97 6,346.16 6,663.47
Engineering Inspector Annual 65,784.67 69,073.90 72,527.60 76,153.98 79,961.68
IT Specialist
Associate Engineer Biweekly 2,862.67 3,005.80 3,156.09 3,313.89 3,479.59
Monthly 6,202.44 6,512.57 6,838.19 7,180.10 7,539.11
Annual 74,429.32 78,150.78 82,058.32 86,161.24 90,469.30
Senior Engineer Biweekly 3,082.78 3,236.92 3,398.76 3,568.70 3,747.14
Monthly 6,679.35 7,013.32 7,363.99 7,732.19 8,118.80
Annual 80,152.23 84,159.84 88,367.84 92,786.23 97,425.54
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03-08-2019
Item 11.a. - Page 24
GROUP: POA
Position ABCDE
Records Clerk Biweekly 1,800.69 1,890.73 1,985.26 2,084.53 2,188.75
Monthly 3,901.50 4,096.58 4,301.40 4,516.47 4,742.30
Annual 46,818.00 49,158.90 51,616.85 54,197.69 56,907.57
Property Evidence Biweekly 1,989.40 2,088.88 2,193.32 2,302.98 2,418.13
Technician Monthly 4,310.38 4,525.90 4,752.19 4,989.80 5,239.29
Records/Property Evidence Annual 51,724.53 54,310.75 57,026.29 59,877.60 62,871.49
Clerk
Police Trainee Biweekly 2,250.63 2,363.16 2,481.31 2,605.38 2,735.65
Monthly 4,876.35 5,120.17 5,376.18 5,644.99 5,927.24
Annual 58,516.26 61,442.07 64,514.17 67,739.88 71,126.88
Police Officer Biweekly 2,583.87 2,713.07 2,848.72 2,991.16 3,140.71
Monthly 5,598.39 5,878.31 6,172.23 6,480.84 6,804.88
Annual 67,180.71 70,539.74 74,066.73 77,770.07 81,658.57
Sr. Police Officer Biweekly 2,853.26 2,995.92 3,145.72 3,303.00 3,468.15
Monthly 6,182.06 6,491.16 6,815.72 7,156.50 7,514.33
Annual 74,184.68 77,893.92 81,788.61 85,878.04 90,171.94
Police Sergeant Biweekly 3,307.03 3,472.38 3,646.00 3,828.30 4,019.72
Monthly 7,165.23 7,523.50 7,899.67 8,294.65 8,709.39
Annual 85,982.82 90,281.96 94,796.06 99,535.86 104,512.65
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03-08-2019
Item 11.a. - Page 25
GROUP: FCFA IAFF
Position ABCDE
Fire Fighter Biweekly 2,144 2,251 2,364 2,482 2,606
Monthly 4,645 4,877 5,121 5,377 5,646
Annual 55,739 58,526 61,452 64,525 67,751
Fire Engineer Biweekly 2,486 2,610 2,741 2,878 3,022
Monthly 5,387 5,656 5,939 6,236 6,548
Annual 64,640 67,872 71,266 74,829 78,571
Fire Captain Biweekly 2,955 3,103 3,258 3,421 3,592
Monthly 6,403 6,723 7,059 7,412 7,783
Annual 76,837 80,679 84,713 88,948 93,396
GROUP: FCFA MANAGEMENT
Position LOW MID HIGH
Administrative Assistant/Biweekly 2,302 2,550 2,798
Clerk to the Board Monthly 4,988 5,526 6,063
Annual 59,860 66,309 72,758
Battalion Chief Biweekly 4,543 5,033 5,523
Monthly 9,843 10,904 11,966
Annual 118,111 130,846 143,593
Fire Chief Biweekly 5,270 5,839 6,408
Monthly 11,418 12,651 13,884
Annual 137,020 151,813 166,607
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03-08-2019
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03-08-2019
Item 11.a. - Page 26
GROUP: MANAGEMENT
Position LOW MID HIGH
Office Assistant I Biweekly 1,428.00 1,582.15 1,736.31
Monthly 3,094.00 3,428.00 3,762.00
Annual 37,128.00 41,136.00 45,144.00
Office Assistant II Biweekly 1,575.69 1,746.46 1,917.23
Monthly 3,414.00 3,784.00 4,154.00
Annual 40,968.00 45,408.00 49,848.00
Administrative Secretary Biweekly 1,828.15 2,025.00 2,221.85
Monthly 3,961.00 4,387.50 4,814.00
Annual 47,532.00 52,650.00 57,768.00
Executive Secretary Biweekly 2,067.69 2,291.31 2,514.92
Monthly 4,480.00 4,964.50 5,449.00
Annual 53,760.00 59,574.00 65,388.00
Executive Asst./Deputy City Biweekly 2,119.38 2,348.54 2,577.69
Clerk Monthly 4,592.00 5,088.50 5,585.00
Annual 55,104.00 61,062.00 67,020.00
Assistant Planner Biweekly 2,282.77 2,529.46 2,776.15
Monthly 4,946.00 5,480.50 6,015.00
Annual 59,352.00 65,766.00 72,180.00
Associate Planner Biweekly 2,519.54 2,791.85 3,064.15
Monthly 5,459.00 6,049.00 6,639.00
Annual 65,508.00 72,588.00 79,668.00
Planning Manager Biweekly 2,994.92 3,318.46 3,642.00
Accounting Manager Monthly 6,489.00 7,190.00 7,891.00
Annual 77,868.00 86,280.00 94,692.00
Public Works Manager Biweekly 3,226.15 3,574.15 3,922.15
Utilities Manager Monthly 6,990.00 7,744.00 8,498.00
Annual 83,880.00 92,928.00 101,976.00
Information Technology Mgr Biweekly 3,305.54 3,662.31 4,019.08
Monthly 7,162.00 7,935.00 8,708.00
Annual 85,944.00 95,220.00 104,496.00
Capital Improvement Projects Biweekly 3,388.62 3,754.15 4,119.69
Manager Monthly 7,342.00 8,134.00 8,926.00
Annual 88,104.00 97,608.00 107,112.00
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03-08-2019
Item 11.a. - Page 27
GROUP: MANAGEMENT
Position LOW MID HIGH
Human Resources Manager Biweekly 3,473.54 3,848.31 4,223.08
Dir of Legis and Info Services Monthly 7,526.00 8,338.00 9,150.00
Dir of Recreation Services Annual 90,312.00 100,056.00 109,800.00
Building Official Biweekly 3,560.31 3,944.77 4,329.23
Monthly 7,714.00 8,547.00 9,380.00
Annual 92,568.00 102,564.00 112,560.00
Police Commander Biweekly 4,049.08 4,485.92 4,922.77
Monthly 8,773.00 9,719.50 10,666.00
Annual 105,276.00 116,634.00 127,992.00
City Engineer Biweekly 4,337.08 4,806.00 5,274.92
Monthly 9,397.00 10,413.00 11,429.00
Annual 112,764.00 124,956.00 137,148.00
Director of Public Works Biweekly 4,787.54 5,304.46 5,821.38
Dir of Administrative Services Monthly 10,373.00 11,493.00 12,613.00
Dir of Community Develop Annual 124,476.00 137,916.00 151,356.00
Police Chief Biweekly 5,180.77 5,740.62 6,300.46
Monthly 11,225.00 12,438.00 13,651.00
Annual 134,700.00 149,256.00 163,812.00
City Manager Biweekly 7,162.62
Monthly 15,519.00
Annual 186,228.00
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03‐08‐2019
Item 11.a. - Page 28
GROUP: PART‐TIME POSITIONS
POLICE DEPARTMENT Step A Step B Step C Step D
Administrative Intern (Cadet) $13.04 $13.69 $14.37 $15.09
Records Clerk $19.52 $20.50 $21.52 $22.60
Fleet & Equipment Technician $23.58 $24.76 $26.00 $27.30
Neighborhood Services Technician $21.04 $22.09 $23.20 $24.36
Property & Evidence Technician $22.09 $23.20 $24.36 $25.58
Training Technician $23.58 $24.76 $26.00 $27.30
Police Reserve Officer Trainee $22.50 $23.63 $24.81 $26.05
Police Reserve Officer $25.84 $27.13 $28.49 $29.91
Designated Level I Reserve Officer $32.30 $33.92 $35.61 $37.39
RECREATION SERVICES DEPARTMENT
AM/PM Assistant I $12.00 $12.60 $13.23 $13.89
AM/PM Assistant II $13.11 $13.77 $14.46 $15.18
AM/PM Assistant Teacher $14.42 $15.14 $15.90 $16.70
AM/PM Teacher $15.86 $16.65 $17.49 $18.36
Pre School Teacher $15.86 $16.65 $17.49 $18.36
Facility Attendant $12.00 $12.60 $13.23 $13.89
Senior Facility Attendant $13.11 $13.77 $14.46 $15.18
Sports Facility Attendant $12.00 $12.60 $13.23 $13.89
Volunteer and Program Coordinator $23.79 $24.98 $26.23 $27.54
MISCELLANEOUS
Administrative Intern $13.04 $13.69 $14.37 $15.09
Office Assistant I $15.86 $16.65 $17.49 $18.36
Office Assistant II $18.54 $19.47 $20.44 $21.47
Sr. Office Assistant $19.52 $20.50 $21.52 $22.60
Administrative Secretary $22.30 $23.41 $24.58 $25.81
Building Permit Technician $23.93 $25.13 $26.38 $27.70
Assistant Engineer $29.21 $30.67 $32.21 $33.82
Associate Engineer $32.13 $33.74 $35.42 $37.19
Planning Technician $23.93 $25.13 $26.38 $27.70
Assistant Planner $27.85 $29.24 $30.70 $32.24
Associate Planner $30.13 $31.64 $33.22 $34.88
Custodian $16.18 $16.99 $17.84 $18.73
Maintenance Worker $16.18 $16.99 $17.84 $18.73
Student Intern (seasonal)$12.00
FIVE CITIES FIRE AUTHORITY
Office Assistant II $17.64 $18.52 $19.44 $20.42
Reserve Firefighter $14.50 $15.50 $16.50
HOURLY RATE
CITY OF ARROYO GRANDE
COMBINED SALARY SCHEDULE
EFFECTIVE 03‐08‐2019
Item 11.a. - Page 29
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Item 11.a. - Page 30