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HomeMy WebLinkAboutReso 30-17 Adopting FY17 18 BudgetRESOLUTION NO. 30-17 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING THE 2017/18 FISCAL YEAR OPERATING AND CAPITAL BUDGETS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend public funds, to conduct the day4o-day business activities of the City; and WHEREAS, the Morro Bay City Council finds and determines those appropriations and expenditures are necessary for continued efficiency, economy, and effectiveness of the City government operations; and WHEREAS, the City Council recognizes Capital Improvement Projects, authorized and approved in the current and prior fiscal years, may not be completed by June 30, 2017; and WHEREAS, the continuing efforts of staff to operate the business of the City, within an approved budget, and to create savings, wherever feasible, are acknowledged by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California: 1. The Fiscal Year 2017/18 Operating and Capital Budgets are adopted, including any amendments made at this meeting, which will be attached to this Resolution; and 2. Staff is directed to prepare and publish a final budget document, with approved amendments; and 3. Subject to Paragraph 4., below, the City Manager is authorized to transfer appropriations within the adopted budget, including from and to capital projects or capital outlay items, so long as those changes do not significantly and negatively prevent implementation of any City Council direction or policy, and total appropriations are not exceeded; and 4. City Council approval is required to transfer appropriations between funds and may approve amendments to the adopted budget by adoption of one or more resolutions; and 5. City Council authorizes and directs the transfer of balances for capital projects, approved in the current and prior fiscal years, but not completed by June 30, 2017, to the Capital Improvement Project Fund(s) for the 2017/18 fiscal year; and 6. City Council approval is required for any proposed increase to the number of CaIPERS- benefited, budgeted positions hired; and 7. In the FY 09/10, the City Council deferred Management's 3% COLA, The Management Employees thank the City Council for returning '/% of that deferral in FY 13/14. In FY 14/15, the Management Employees agreed to waive 1'/z% of the deferral, retaining 1 % for future City Council consideration. For FY 17/18, the 1 % deferral remains unpaid, subject to future City Council decisions; and 8. Per City Council minute order May 24, 2004, any expenditures, in excess of the assessments received for the Cloisters Assessment District, will be subsidized by the General Fund, without additional request made to City Council; and Resolution No, 30-17 Page 2 9. The City Council is committed to supporting Tourism and Marketing efforts within the City, and will continue to do so with future budgets, per Resolution No. 03-16. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 13th day of June 2017, by the following vote: AYES: Irons, Davis, Headding, Makowetski, McPherson NOES: None ABSENT: None ABSTAIN: None E L. IRONS, ATTEST: SWANSON, City Clerk City of Morro Bay Adopted Operating and Capital Budgets Fiscal Year 2017/18 2017/18 ADOPTED BUDGET TABLE OF CONTENTS PAGE 1 17 21 31 38 40 42 43 44 45 46 Budget Message FY 2017-2018 Goals & Objectives Organization Charts Salary Schedules Elected and City Officials, Commissions and Committees Personnel Map City Funds List Summary of All Budgeted Funds All Funds Revenues by Category All Funds Expenditures by Category Budget Overview - Public Friendly Graphs GENERAL FUND Forecast 50 Revenues By Source 51 Expenditures By Department 52 Expenditures by Division Category 53 Departments: City Council 54 City Manager 55 Contract Services 56 Elections 57 City Clerk/Legal 58 Human Resources 59 Deputy City Manager 60 Finance 61 City Owned Rental Property 62 Police 63 Fire 65 Community Development 67 Public Works 68 Recreation Services 75 Transfers 78 ALL OTHER FUNDS Information Technology Internal Service 79 Harbor Operations 84 Water Operations 85 Utility Discount/Rebate Program 89 Sewer Operations 91 District Transaction Tax 95 Morro Bay Tourism Business Improvement District 98 Governmental Impact Fees Accumulation 101 County Tourism Marketing District 103 General Government Vehicle Replacement 105 General Fund Emergency Reserve 107 General Fund Facility Maintenance 109 Capital Replacement 111 TABLE OF CONTENTS ALL OTHER FUNDS (CONTINUED) Projects Accumulation 113 Community Development Grants 115 State Gas Tax 117 Lower Cost Visitor Accommodations Mitigation Fees 119 Traffic Safety 121 Special Safety Grants 123 Parking In-Lieu 125 Transit 127 Local Transporation Funds, Bike Paths 129 Local Transporation Funds, Roads 131 Risk Management Internal Service 133 Special Assessment Districts 135 Cloisters Assessment District 137 Trust and Agency - General Plan Maintenance Fee 139 Trust and Agency - Unfunded Compensable Leaves 141 MB/CSD Wastewater Treatment Facility 143 Park In-Lieu Fees 145 State Park Marina 147 Housing In-Lieu 149 SCHEDULES Schedule of Capital Projects - Summary 152 Capital Project Sheets - Individual 154 156 159 160 162 164 166 168 170 172 174 176 178 180 182 184 186 188 190 192 194 196 198 200 202 204 206 208 Laurel Avenue Utility Line Rehabilitation Morro Creek Streambank Restoration City Park Play Equipment Replacement ADA Transition Plan Surf Street Stair Replacement Del Mar Park Restroom Replacement SR1/Main Street @ SR41 Interchange Improvements Pavement Management Plan ADA Accessibility Improvements - CDBG Sidewalks Morro Bay Transit - Replacement Vehicle Morro Bay transit - Short Range Transit Plan Water - Nutmeg Tank Replacement Water - One Water Plan Water - State Park Waterline Interconnect Water - Chorro Strream Guage Water - Outside Emergency Repair Contingency Water - Storage Tank Exterior Maintenance Water Treatment - Desal Building Exterior Replacement Water - Kings Water Storage Tank Interior Cleaning Sewer - Embarcadero Sewer Rehabilitation Sewer - (Collections System) Outside Emergency Repair Contingency Sewer - (Collections System) Service Truck Replacement Sewer - (Collections System) Vactor Truck Replacement New Water Reclamation Facility Harbor - Beach Street Slips - North Harbor - Beach Street Slips - South Harbor - Boat Reapir/Storage Yard - Triangle Lot Harbor - Ice MachineMaintenance Harbor - South T-Pier Renovations 210 Schedule of Deferred Infrastructure Maintenance - Completed & Proposed 212 Schedule of Completed Facility Maintenance Projects - Historical Years 213 Two-Year Prospective Street Pavement List 214 Schedule of Completed Pavement Management Projects 216 218 220 228 239 SUPPLEMENTAL INFORMATION Water Bond Coverage Ratio Calculation Glossary Investment Policy Unfunded Liabilities Ordinances: 519 District Transaction Tax (Measure Q)240 546 Tourism Improvement District 247 562 Amendment to Tourism Improvement District 252 Resolutions: 47-07 Government Impact Fees 254 48-08 Water, Sewer and Harbor excess operating cash transfer to accumulatio 260 26-10 Procedure for requesting Measure Q funding 261 10-11 Creation of Deferred Maintenance Account 263 36-11 Partnership with Urban County CDBG 264 46-12 Intended use of Measure Q funds 266 48-13 Parking In-Lieu designation of $399,000 268 82-14 County Tourism Marketing District 269 30-15 Establishing User Rates for Water and Sewer (Wastewater) Service 271 32-15 Risk Management 275 33-15 General Fund Emergency Reserve 277 34-15 Strategic Investment Spending Plan 280 03-16 Defining the Management of Tourism Promotions and Marketing 283 Memorandum for City Council Date: June 7, 2017 Subject: FY17-18 Adopted Budget Letter My staff and I are happy to present you this FY17-18 Staff Budget for consideration, discussion, adjustment and adoption. The General Fund budget is structurally balanced and shows a small surplus of $9,104. As usual, this budget covers all funds in the City: •The General Fund and associated reserve/accumulation funds such as the General Fund Emergency Reserve, and Facility and Vehicle Replacement Funds, etc. •Special Revenue Funds such as Measure Q, Morro Bay Tourism Business Improvement District and Governmental Impact Fees, •Enterprise Funds such as Water and Sewer. •Other funds such at the Wastewater Treatment fund which is a Component Unit fund jointly managed by the City and the Cayucos Sanitary District. A comprehensive City Funds List is in the attachments. By law, revenues into the Enterprise Funds must be used only for related expenses to the reason for collected user based revenues. Staff is diligent to ensure, for example, that water fund revenues are only used for expenses directly related to the acquisition, treatment and distribution of water. The Special Revenue Funds have similar requirements and limitations. Perhaps our most visible special revenue fund is the Measure Q fund that receives revenues from the City’s ½ cent special sales tax passed in Nov 2006 under Measure Q and intended solely for streets, storm drains and public safety. This year Measure Q is projected to generate revenues of $1,024,129 to be used for streets and public safety, and this budget does that. The other special revenue funds are in balance and, except as noted below, unremarkable. The General Fund will likely generate the most interest, as it provides the primary opportunity for discretionary spending, or, discretionary cutting. That said, even in the ~$13.6M general fund, there are limited discretionary funds available, and thus little capacity to address some major city goals. With around 75% of the General Fund committed to labor this year, and much of the balance committed to fairly non-discretionary items such as paying for utilities, the basic license for our accounting software, providing essential training for police and fire personnel, having copy machines in city offices and purchasing fuel for police and fire vehicles, there is little money left to spread between our many various needs and desires. That said, this budget does work to address our adopted FY17-18 work plan objectives. Council and the community are well aware of the medium and long term fiscal challenges the City faces - more on that in the 10-year forecast section below. This budget recognizes and begins to address these challenges. A few observations: 2017/18 Adopted Budget Page 1 2 FY17-18 Adopted Budget Letter •First, the city’s fiscal challenges are longer term structural challenges, not near term cash-flow issues. The City has a healthy emergency reserve (over 30% of projected revenue) and a balanced budget. Our problem is not whether we can afford to continue to provide staff essential training, or even hire employees to replace employees who retire or resign. Our problem is that in the coming seven years our revenues are not sufficient to continue to provide all of the programs and services we currently provide. Put another way, we cannot address our fiscal challenges simply by “tightening our belt” here and there, we either need to increase revenues substantially, or make significant cuts/reduce expectations to existing programs and services. •Second, this budget incorporates the FY18 budget guidance provided by the City Council in March 2017. To balance this budget, following Council direction, we have removed the $150K contribution to the project accumulation fund, and the $100K contribution to the capital replacement fund. That $250K reduction is the first of a total of $650K that Council directed be made over the next three years. Staff are actively working on compiling potential cut areas for future years, per Council direction, amounting to an additional $400K of cuts required in FY19 and FY20 - $200K per year respectively. •Third, this budget, to achieve balance, reduces (not eliminates) spending in some service areas. For example: -A $25K reduction in street tree trimming, cutting back to the level of service we provided in 2015. -A $10K reduction in the Public Works intern position account. -A $5K reduction in the Economic Development Opportunity Fund -A $5K reduction in the Police Department internal investigations contract services account. -A deferral of around $15K of important but not critical fire department equipment. •To balance the budget, staff trimmed around $100K of spending as highlighted above. 10-Year Budget Forecast – a Revenue and Expense Problem The opening section of our FY16-17 budget letter contained this important observation: Addressing our revenue shortfalls is crucial for the City if we are to remain a full-service City in the decades ahead. This observation is even more apt this year than last year. Without significantly improving revenue, the City will likely have to cut an additional ~1.1M in services or programs in the 6 years ahead to continue providing a long-term balanced budget. In a $13.6M budget, this $1.1M represents an 8% cut. However, removing much of our essential labor costs and our essentially required expenses (such as utilities, licenses for financial software, etc.), that $1.1M will likely be taken from a “discretionary programs and services” pot of around $4M. In other words, if we do not take significant action to improve our revenues, we will likely have to cut more in the range of 25% of the discretionary services and programs we offer. 2017/18 Adopted Budget Page 2 3 FY17-18 Adopted Budget Letter The Council’s recently adopted FY18 Goals and Objectives recognizes this challenge and identifies concrete steps toward improving revenue. Goal #1, adopted by Council, states: Goal #1 (Essential Goal) – Achieve Economic and Fiscal Sustainability Description: This essential goal recognizes the City has been living within our means, but is not currently able to fund all basic services and requirements at the level appropriate for a community of our size. It also recognizes the importance of strengthening and maintaining strong financial management practices. Due both to our previous inability to fund important services such as street paving and replacement of key facilities, and the lack of an adequate General Fund capital budget, plus the impact of recent cost concerns - especially escalating CalPERS costs - we are unable to continue living as we have in the past. This goal centers around economic development and fiscal actions (revenue enhancement, public funding measures, cost control, and sound fiscal management practices) that target a 25% increase in projected revenues from the end of FY17 to the end of FY25. Duration: This is an 8-year goal - the City intends to achieve fiscal sustainability by 2025. Focus: This goal includes objectives related to revenue enhancement, general economic development, cost control, and assurance of sound financial management practices are in place. The goal goes on to identify eight specific objectives the City is pursuing this year to begin to address our revenue challenges. This action is essential based on what we learned in our updated 10-year budget forecast, initially foreshadowed for the Council on January 10, 2017 and presented in detail on February 28, 2017. That forecast is available to the public online (at http://www.morro-bay.ca.us/documentcenter/view/10535 ) and the council has discussed the forecast and its ramifications multiple times between Jan 10, 2017 to the present. Thus, this section is intended only to summarize the primary concerns identified in that forecast. Bottomline: due to precipitously increasing required City contributions to fund the California Public Employees Retirement System (CalPERS), City expenses will likely increase around $1.3M over the next 6 years. While normal growth in projected revenues will keep up with normal expenditure increases in cost centers, normal revenue growth will not come close to covering the CalPERS spike. This CalPERS contribution spike is due to CalPERS reducing the projected rate of return on its ~$300 Billion investment account from 7.5% to 7%. The cost to Morro Bay for this reduction is around $650K, when the rate reduction is fully implemented, in FY19-20. Anticipating that CalPERS will make a further discount rate reduction from 7% to 6.5%, Morro Bay will likely see another ~$650K expense increase in the FY22- FY24 budget years. This new CalPERS action, taken on Dec 22, 2016 (and a substantial change of direction from the CalPERS board direction given to cities in Nov 2015) is affecting all CalPERS agencies similarly. For example, the City of San Luis Obispo faces a new CalPERS bill of over $5M 2017/18 Adopted Budget Page 3 4 FY17-18 Adopted Budget Letter (https://calcoastnews.com/2017/03/calpers-move-leaves-slo-multi-million-dollar-shortfalls/). Huntington Beach’s bill is $23M over previous projections. (http://www.latimes.com/socal/daily- pilot/news/tn-dpt-me-hb-pensions-20170502-story.html) In short, without significant increases in revenue, the City’s new increased CalPERS contributions will require a cut of around $1.3M in services and programs over the next 7 years to maintain a balanced budget and appropriate financial reserve. This budget is based on, and consistent with, the 10-year Budget Forecast prepared for Morro Bay by Management Partners, and presented to the Council on Feb 28, 2017. That forecast included a small (~$20K) transfer from the General Fund Emergency Reserve to the General Fund. Even so, due in part to stronger than forecasted revenues this year, and good cost control, our General Fund Emergency Reserve level is well above the forecast projection of $3.59M in last years budget letter. As of today, our GFER is budgeted at $3.69M, and significantly above the Council-directed minimum GFER level of $2.68M for FY18. Structurally Balanced vs Addressing Community/Council Desires Like many cities, Morro Bay has consistently practiced “cash-based” budgeting. That is, we project about how much cash (revenues) we expect to receive, and then divvy that up across all the existing cost centers (expenditures). While this is standard, it does not give us a very good picture of what you are choosing not to “buy” and, therefore, it does not allow us to see and adjust priorities very well. For example, what if we learned we were funding the Fire Department at 35% of their requirement and streets at 95% of the requirement? We might choose to increase the Fire budget and reduce the streets budget. The City’s areas not funding at ideal levels, notwithstanding the previously mentioned CalPERS concerns, are indicated below. While this list is not exhaustive, it does represent priority spending areas if/when additional funding becomes available through one means or another. • Streets. The Pavement Condition Index (PCI) is the accepted measure of street condition / maintenance, and an average of PCI-70 is the California State standard. Our detailed pavement analysis last year determined an additional $2,200,000/year over the next twenty years is needed to bring our streets up to PCI-70. If Council and the community desire a level of service of PCI-70 for Morro Bay streets, significant additional funding would be needed. • Capital Replacement. The City now has a capital facility replacement fund into which, ideally, money would be set aside each year for major maintenance and eventual replacement of City facilities (a.k.a., funded depreciation of capital assets). This budget removed last years $100,000 contribution, as part of the $250K Council identified to balance the budget. • Other Needs. While we are sustaining our existing recreation programs, as minimum wage nearly doubles from 2014 to 2020, the cost of continuing existing programs will increase dramatically. Further, our community values recreation programs, especially for youth and seniors, and expanding opportunities is a legitimate goal. Other needs included a broad and sustained effort to improve the safety and aesthetics of our public spaces – from tree-trimming to sidewalk 2017/18 Adopted Budget Page 4 5 FY17-18 Adopted Budget Letter replacement to tree-lighting to public restrooms, trash collection and upkeep of public-serving City facilities. Finally, an annual project accumulation contribution would be important to begin to address some of the new capital projects that may be required, such as intersection improvements at Hwy 41 and Main St to replacement of the Surf Street Stairs ($150,000 removed from this budget as part of the $250K Council identified to balance the budget). City Organization and Full Time Equivalent Employees With a clear eye on our future budget challenges, it remains important to ensure that our staff organization is set appropriately for the duties they perform, and to ensure fairness across the organization. Following are a few staff changes recommended in this budget: •Fire Marshall. To be published based on Council guidance at 5/9/17 Council Meeting. A fulltime / FTE fire marshal is included in this budget. If approved this will add one FTE. •Recreation Services Coordinator/Manager. Several years ago we had a Department Head level position supervising recreation. Last year we hired a well experienced and effective employee into a non-management, supervisory position as our Recreation Services Coordinator with the intention of making that position a management position with this budget. Supervising the Recreation Services Division, with 3 full-time and scores of part-time employees and numerous programs is clearly a management level position and our incumbent is proving very effective. The budget includes around $4,000 to convert the current Recreation Services Coordinator to a Recreation Services Manager. This is not an FTE increase. •Senior Planner. The City has an existing Senior Planner position with approved position description but since this position has been vacant for some time it has not been included on the salary schedule. Our associate planner has served the City for around five years and meets (exceeds) the requirements to move to the Senior Planner level. This budget adds the existing Senior Planner position to the salary table and provides the $3,500 to assign our associate planner to this position. This is not an FTE increase and the associate planner position is not intended to be filled, nor could it be without Council approval for an FTE increase. •Support Services Coordinator. Our support services coordinator position in the Police Department has been codified as a “confidential” position but should be a management position. This position supervises all non-sworn employees and programs in the police department (records, evidence, budget, etc). This budget converts the Support Services Coordinator position to a Support Services Manager and includes the $3,000 required for this change. This is not an FTE increase. •FTE Increase – Full-time/partial benefits conversion. This budget changes the status of our last full-time / partial benefits employee to FTE. This is consistent with Council action and request when we recently did the same thing for positions in Community Development and Recreation. We have been moving away from working employees full-time without providing benefits consistent with other full time employees and this FTE increase of 1, to 98.75, completes that transition. The costs of this conversion is around $8,000 each to the water and sewer funds as this position is the water and sewer billing clerk. Approval of this budget will constitute Council approval to increase FTE to 98.75. Attachment 1 to this budget letter and included at the beginning of the budget is a detailed city organization chart. This chart(s) is not meant to perfectly describe lines of authority or function within 2017/18 Adopted Budget Page 5 6 FY17-18 Adopted Budget Letter departments / divisions. It does, however, clearly lay out City Organization at the Department and in some cases Division level, and further clearly designates the City’s 98.75 FTE positions. Key Funds and New Actions Before providing a department-by-department overview of the budget, it is important to highlight some key funds and identify some new actions in this year’s budget. The City made good initial progress last year establishing some protected funds for specific purposes, and focusing attention of special funds that had previously existed. •General Fund Emergency Reserve (GFER). The GFER level for end of year 2017 was set by Council resolution at $3.27M. We anticipate we will end this year at $3.69 M, ~$420K above requirement. The Council adopted GFER level for EOY 18 is $2.68M, but this was set based in part on a projected 2017 recession. This budget anticipates ending FY17/18 with $3.69M in the GFER, well above the council directed minimum and also above the 27.5% pf revenue council goal. •Risk Management Fund. Our minimum reserve in this fund is set at $100,000 by policy. We anticipate we will end this year with more than minimum levels in the fund, and end next year with a similar situation. However, there are several ongoing activities that could impact this fund and staff does not recommend harvesting any excess from the risk management fund for other priorities until the mid-year 2017-18 budget review. •Capital Replacement Fund. This fund was established last year as “funded depreciation” account for the eventual replacement of City facilities such as the police station, public bathrooms and other General Fund public facilities. We put $100,000 into this fund last year. Based on council guidance to cut $250K from this year budget, this budget does not include any contribution to the Capital Replacement Fund. •Vehicle Replacement Fund. This fund was established to regularly save for replacement of city vehicles. We contributed $75K to this fund in FY16-17. We project this fund needs an annual contribution of $100K to keep our police, fire and maintenance fleet operational. This budget puts $75,000 into this fund. We anticipate needing to replace the police watch commander vehicle this year which is beyond its useful service life and that expenditure is included in this budget. Other replacements are deferred. •Project Accumulation Fund. This fund was established to protect funds required for new capital projects. This may also be a source of matching funds for grants associated with projects. Upcoming projects could be the 41 and Main intersection improvements, or other new projects/facilities approved by Council. We put $150K into this fund in last year’s budget. Based on council guidance to cut $250K from this year’s budget, this budget does not include any contribution to the Project Accumulation Fund. •General Fund Facility Maintenance Fund. This fund is for general ongoing maintenance of city facilities. Fixing roofs, repairing toilets, painting public bathrooms, etc. This fund is funded from rents received from the tenant in the city-owned Distasios building. Over the next few years we will need to begin to fund this maintenance fund from general fund revenues directly as we consider possible revitalization of the Market Plaza area including the Distasios restaurant building. Staff is carefully considering this fund due to possible tenancy changes in the Distasios property this budget year. 2017/18 Adopted Budget Page 6 7 FY17-18 Adopted Budget Letter •Compensable Leaves Fund. This fund was created to set aside adequate funding to pay for compensable leaves, when employees separate from the City. This fund includes a $50K contribution for FY18, and an assumed end of year FY18 Fund Balance of $419K. THE GENERAL FUND With that overview as a preface, the General Fund discussion follows. As you know, the General Fund is the recipient of most of our taxes, and pays for most of our “general” services. This budget appropriately commits the vast majority of our revenues to our most basic services: Public Safety and Infrastructure. General Fund Revenues General Fund Revenues come primarily from four sources: property tax, transient occupancy tax (TOT), sales tax and various fees-for-service charged by the city. Sales Tax, TOT and Property Taxes generate well over 70% of projected revenues. One key component of the City’s 10-year budget forecast is a professional analysis of the City’s revenue sources and then projecting future revenues considering economic trends and with a benchmarking eye on similar cities. The 10-year forecast is available on the City’s website for additional reference. The revenue forecasts in this budget are firmly based on our March 2017 10-year budget forecast. •The property tax projection is based in part on the most recent County assessor data. We are projecting a ~3.1% increase in property tax this year. •Sales tax is projected to increase about 4.1%. Morro Bay has maintained consistent sales tax revenue figures, notably through both economic downturns or booming periods. •The City is projecting long-term growth of TOT at 5%, and are budgeting at a 5% increase for FY 2017/18. We continue to see strong tourism numbers and anticipate the continued effectiveness of Morro Bay Tourism. •Other fee-based revenues have been adjusted upwards ~9% from last year, primarily affected by appropriate fee schedule changes to better recover the cost of providing services. Revenues provide the backbone for how a city spends its money. Below is the breakdown for the proposed budget expenditures. General Fund Expenditures As with previous budgets, this budget divides expenditures by various departments and sub-departmental sections of accounting. The letter will address expenditures at the Departmental level. Personnel Since people are the most expensive and valuable part of any governmental budget, they deserve a separate section. This budget spends over 75% on people, and 52% of that is on firefighters and police officers. Indeed, over 44% of the entire General Fund budget goes to pay the police and fire department expenses to protect our community - money well spent. General Fund Departmental Expenditures 2017/18 Adopted Budget Page 7 8 FY17-18 Adopted Budget Letter The following sections address the various General Fund Departments / Sections in more detail. Readers may refer the more detailed line-by-line budget reports, for additional information on each section. City Council This section covers expenses generated by City Council. • The personnel line covers personnel costs for five council members. • The services line includes items such as insurance share, and EVC, LAFCO, League of California Cities and California Coastal Trail Association memberships. • The services line also includes sufficient meetings and travel funds for City Council attendance at the bi-annual LCC Annual Conference and the LCC Mayors and Councilmembers Academy. • Under “payment to other agencies”, this budget includes a defined “one-time bequests” line for $8,000, static from last year. This is the Council’s “benevolence” fund, monies available to support worthy causes, such as SCORE, Community Resource Connections office, and Senior Nutrition. City Manager This section covers expenses generated by the City Manager’s office. This is the second year the City Clerk, has been moved entirely to a separate department. • The personnel line covers personnel costs for the City Manager. • The services line includes items such as utilities, memberships in appropriate professional organizations, attendance at essential professional training and conferences, staff training events, and volunteer recognition events. • This budget includes $20,000 for the City Manager’s Opportunity Fund, a discretionary fund the City Manager may use as appropriate for unidentified projects and items, normally related to improving our economic / fiscal situation. This fund has been utilized for items such as our 10- year economic forecast, provided limited assistance to the Chamber Business Walk, completed the split-rail fence at the bike park, provided flexibility to make an immediate commitment to host the AMGEN Tour of California, and similar activities clearly in line with our City’s Goals and Objectives but not known items during the budget process. This fund was budgeted at $25,000 last year (second year of existence) and reduced to $20,000 this year. Contract Services This “department” was created last year to provide better transparency and cleaner understanding of some significant expenses. Each of the major contracts in this section were previously included in other sections of the budget. They are all now consolidated in this section. Following is a brief description of each of these contracts. • Fiscal Management Fees. $7,500. This is the City’s required contract with the Public Agency Retirement System (PARS), to provide social security-like retirement coverage to part time employees not enrolled in CALPERS. • Legal Fees. $150,000. This is the General Fund portion of our legal services contract with Aleshire & Wynder. The City continues to receive excellent, comprehensive service from A&W. 2017/18 Adopted Budget Page 8 9 FY17-18 Adopted Budget Letter •AGP Video. $60,000. The General Fund cost of providing TV coverage of all public meetings. The City is saving some money in this area using employee hours to post meeting videos on YouTube instead of paying an additional fee for this service. •Dispatch Services. Dispatch services for Fire ($123,899) and Sheriff ($252,076). The transition to regional dispatch has gone quite smoothly and is providing good service to both our first responders and our residents. •DocuTeam. $9,500. This is the general fund share for the legally required storage of historic City documents by a contractor. As we improve our record keeping and digitize historic documents, we may be able to wean ourselves off this service; however, there will likely be a short-term uptick in costs to destroy records as appropriate based on an updated Record Retention Schedule. •Digital Map. $10,000. This is the general fund share of our current GIS mapping application (likely to be replaced with Cityworks when that is fully operational). •Ricoh. $35,000. This is consolidated cost of all general fund departments for our copier services contract. In Feb 2016 staff reviewed this contract, compared it to other alternatives, and determined to continue with this Ricoh contract for this essential service. •Visitor Center. The City is under contract with the Chamber of Commerce to provide Visitor Center services in the City-owned building at 695 Harbor Street. The contractual expense for this service in FY17-18 is $50,000. •Animal Services. This $70,130 is the City’s pro-rata share paid to the County for animal services: animal shelter, etc. The SLO County City Managers are working closely with / against County staff to ensure the new County Animal Shelter project meets basic requirements but does not grow beyond the basic level of service required for public health and expected by the population. City Clerk Office City Clerk and Legal Services This section covers expenses generated by the City Clerk office. This office includes the City Clerk and Legal Assistant / Deputy City Clerk. The Legal Assistant / Deputy City Clerk is our primary Risk Management employee and much of her time is charged to Risk Management. As noted, we combined Human Resources into this office last year. •The personnel line covers personnel costs for the City Clerk and Legal Assistant, with a split between both City Clerk and Risk Management. •The Contractual Services line includes costs for updating sections of the Municipal Code •The services line includes resources for appropriate professional development, (including supervisory training), and association memberships for the Clerk and Deputy Clerk. Elections This section budgets $10,350 for local elections, which will provide a “savings” of this amount for either the next election in late 2018, or pay for all/portion of a special election (should the Council call for one). 2017/18 Adopted Budget Page 9 10 FY17-18 Adopted Budget Letter Human Resources This section covers Human Resources operations for a ~100-person organization. •The personnel line is for one full-time employee. •The Contractual Services line includes costs for labor negotiations. •The Services line includes items such as retainer for Liebert Cassidy and Whitmore who provide valuable HR training and advising, background checks, and medical exam costs Deputy City Manager This section covers expenses generated by the Deputy City Manager’s office. •The personnel line covers 50% of the personnel costs for the Deputy City Manager. The rest of the DCM’s personal costs are distributed between IT and Rec. •The services line includes a total of $5,400 for communication, promotion and advertising requirements such as special utility bill mailers to inform residents of particular important information / events. •The services line also includes appropriate professional development activities and memberships. Finance Department (Accounting and Treasury) This section covers most major general fund revenues, and Finance Department expenses. •The personnel line covers all or part of several finance employees, including the Finance Director, Budget & Accounting Manager, Senior Accounting Technician and Account Clerk. •The services line includes items such as annual audit ($40,750), miscellaneous bank charges ($20,000), postage, telephone service, etc. •The services line also includes modest funding for professional development, as three out of the four FTE’s are new to the City since October 2016. •$64,500 was moved out of this budget and into the Information Technology Internal Service Fund as a contract expense for the City’s Financial Software (New World). Police Department This section covers the Police Department and has two parts: operations and support services. •The overall PD budget is inline from last year with no major overall changes. •One exception is that the School Resources Officer (SRO) position is no longer ½ funded through the school district. The Police budget now includes this ½ SRO position in the budget, with the remaining ½ in the Measure Q budget (re-evaluate this annual allocation throughout the FY). •The remaining general increase in expenses is due primarily to the anticipated sharp increase in CALPERS contributions, an increase we forecasted. •PD Operations. o The operations section includes all PD operations – primarily labor for sworn officers. o The Supplies and Services section includes items such as vehicle fuel ($30K), and officer training ($50K). •Support Services. The Support services section is very much in line with last year’s budget. 2017/18 Adopted Budget Page 10 11 FY17-18 Adopted Budget Letter Fire Department This section covers all fire department operations. •Overall, the Fire Department is inline from last year. •The personnel line can be confusing because of overtime pay, part-time pay, Measure Q funding, and mutual aid. •Overtime pay - Mutual aid responses during fire season from our Fire Department directly impact the overtime pay line. The costs of mutual aid responses are always balanced with mutual aid revenues and adjusted during the mid-year budget process. We are not budgeting for either mutual aid revenues or expenses and will balance them at mid-year after the summer fire season. •The personnel line includes a new Fire Marshal position contingent upon action at the 5/9 Council meeting. This position is largely offset (75%), by increases to the fee schedule already approved by Council for FY2017/18 forward. Part of the remaining 25% that is not offset by fees, is mostly offset through a reduction in part-time labor costs. Community Development The following are some general comments on the Community Development section. •The budget includes personnel costs for the Community Development Director, two permanent planners, part time code enforcement offices, the building inspector, Permit Technician, full time Office Assistant and part time Office Assistant. •The budget includes $100,000 for the Council directed Goal #4 “Review and Update Significant Land Use Plans”. •Cityworks related expenses were moved out to the Information Technology Internal Service Fund. Public Works This section covers the public works department, minus the water and sewer enterprise funds. There are no significant changes to this department since last year. •This section can be a little hard to understand, especially the personnel pieces, since we are required to have a number of special budget sections (Public Works, Consolidated Maintenance, Street Maintenance, Street Trees Street Lighting and Storm and Creek Maintenance) and some personnel costs are split between those sections. •This budget includes a reduction of $25,000 to tree trimming services, in-line with levels prior to FY 2016/17. •Street reconstruction and paving monies come primarily from the Measure Q special revenue fund. We will note here also, in the public works section, that available Measure Q funding for street paving was reduced slightly to $530K (in-line with FY 2015/16 levels). •Noted in the Streets budget is an increase in Gas Tax revenue, which is the result of the State passage of SB1. This increase from ~$237K for FY2016/17, to $305K for FY17/18, will offset around $68K off General Fund support to this General Fund unit. This new round of Gas Taxes will go into effect November 1, 2017 (only a portion of next FY), so we can safely assume an increase in Gas Tax revenues in future years based on full FY’s of Gas Tax enhancements being in place. 2017/18 Adopted Budget Page 11 12 FY17-18 Adopted Budget Letter •This budget includes $54,400 in the Streets Budget for Materials. These materials include: o Five tons of asphalt patching per week for eight months of the year for basic street maintenance. o Funding is also included to replace 100 residential signs. •Additional Contract services in the Streets division budget is the $38,000 street-sweeping contract, and is required by the State, primarily due to storm drain requirements. Other major public works general fund items include: •The Regional Water Resources Quality Control Board is requiring a Stormwater Model budgeted at $15,500 •Contractual services to utilize California Conservations Corps and California Department of Correction and Rehabilitation labor costs for various projects ($36,000) Recreation Services Division This section covers the Recreation Services Division. We remain committed to delivering excellent recreation services, and would like to provide additional services if financial conditions improve. It is critical to note, however, that with minimum wage nearly doubling, from $8/hour in 2014 to $15/hour in 2021, it will be very difficult to maintain our current level of service without increasing some program costs or substantially increasing general fund subsidy to recreation programs. So, future general revenue increases may be absorbed by increased part-time labor costs (due to minimum wage hike) instead of going into expanding programs. •Personnel. This budget includes an increase of ~$125K in costs to the General Fund, primarily related to the increase in part time wages, couples with CalPERS increased costs for our full-time employees. Additionally, there is an increase cost for lifeguards and aquatic programs for the anticipated pool opening in September. Some of this increase will be offset through fees for lifeguard training and pool service fees. •Division structure includes a division manager in the office day to day, working in tandem with the Deputy City Manager on long-range recreation planning to further enhance this crucial quality of life initiative for our community. •This budget includes funding for two City supported events, $5,000 for 4th of July and $2,500 for Halloween (partnered with the Chamber of Commerce), and $2,000 for other smaller events. •This budget includes funding for two recreation guides ($2.5K each) depending on number of ads sold. Enterprise Funds and Select Internal Service Funds and Special Revenue Funds This section contains comments on our Enterprise Funds, Harbor, Water, Sewer and Wastewater, the Information Technology Internal Service Fund and select Special Revenue Funds. The Enterprise Funds are stand-alone - revenues that can only be used for expenses directly related to the purpose of the fund. Internal Service Funds “collect” revenue from other funds to provide services across City departments. Special revenue funds include Transit, Government Impact Fees, Parking in Lieu and other restricted funds. 2017/18 Adopted Budget Page 12 13 FY17-18 Adopted Budget Letter Information Technology Internal Service Fund Information Technology Services is now fully in an Internal Service Fund and all contributions into the fund, and expenses for IT, are covered in that section. The fund receives transfers in from the General Fund and Enterprise funds. These transfers include expenses historically in the IT section of the budget, expenses previously in the various departments for their specific IT needs. •The personnel line includes costs for our single IT professional and 35% of the DCM. •The supplies line includes numerous maintenance contracts. •The services line includes all our basic licenses, the new Office 365 licenses, New World financial system license, and funds to begin to provide off-site network and computer support services. •We anticipate there are sufficient funds in the services line, and the perhaps the ending cash balance if required, to complete the move of our servers from the closet in City Hall (no power backup) to the Fire Station. Harbor Enterprise Fund The Harbor Enterprise Fund is balanced. However, there is likely a long-term requirement vs revenues gap, relating to capital and maintenance future needs. That is, our future revenues may not match our future requirements for Harbor infrastructure maintenance and replacement (piers, docks, roads). •The budget includes continuance of the following Goal-specific capital projects funding: $55,000 for the Marine Services Facility Feasibility Study (Goal 3.d), $5,000 for an Eelgrass Mitigation Policy (Goal 1.b), and $5,000 for small infrastructure beautification projects (Goals 3.e). •$343,000 in assumed grant funding for several projects. •$6,700 additional Harbor Fund revenues above the Cost Allocation to help continue the threefold increase in waterfront restroom cleaning implemented in the past six months to keep pace with demand. Water and Sewer Enterprise Funds With the passage of the water and sewer rate increases in summer 2015, the Water and Sewer Funds are appropriately funded for at least the five years ending in July 2020. Water and Sewer Funds are both balanced. The Water Accumulation fund is adding $404,368 to reserves. Revenues over expenses in the Sewer Accumulation Fund are $1.05M. This accumulation will continue to increase as water and sewer rates increase and will then be used for capital projects and debt service on the new WRF project. The FY2015-2016 audit indicated the City is now very close to covering the required debt service ratio in the Water Fund, and fully anticipates that this coverage ratio will be achieved by the end of FY2016-17. The Utility Discount Program is continuing with ~100 financially challenged residents taking advantage of a ~10% reduction on tier water / sewer bills. Water Reclamation Facility (WRF) Capital Project Schedule Included in the attached packet is the detailed worksheet for the ongoing Water Reclamation Facility (WRF) project. Staff will continue working in the direction provided by Council on the project. Our aim is 2017/18 Adopted Budget Page 13 14 FY17-18 Adopted Budget Letter moving the project forward as expeditious and economic as feasible, while meeting the desires of the Council and community. Broadly the Water Reclamation Facility project will be funded from sewer rates and grants. State Revolving Funds (SRF) have been secured ($10.375M), and other funding being pursued to meet immediate cash needs (with sewer rates ultimately paying those finance related debts off over the long- term). A State Water Resources Control Board grant of $75,000 for recycled water planning has been awarded to the City, as has $87,361 in Supplemental Environmental Project money from violations and fines at the California Men’s Colony. Expenditures for FY2017-18 are categorized as Program Management, Bridging/Procurement Documents, Planning/CEQA/Permitting, Property Acquisition, and Lift Station/Force Main Design. •Program Management expenses of $1,200,000 are primarily for Michael K. Nunley & Associates, Inc. (MKN). MKN is the City’s program manager for the entire project, hired on in a consultant role instead of the city hiring additional permanent staff to manage this 5-8 year project. Expenditures MKN services include: public outreach, WRFCAC and Council reports, budget management, schedule management, recycled water planning and Master Water Reclamation Plan, solicitation of design and construction teams, coordination with LAFCO and Coastal Commission, and consultant management. Other program management expenses include Kestrel Consulting for ongoing grant and loan application support, and Procore software for data, contract, budget, and schedule management. •Preliminary Engineering ($295K) includes the Facility Master Plan by Black & Veatch. Other expenses include hydrogeologic modeling and analysis by GSI Water; soils investigation; and flow monitoring. •Planning/CEQA/Permitting includes cultural resources, traffic study, CEQA costs, and permitting fees. •Property Acquisition of $337,000 •Lift Station and Force Main Design at $1,200,000 A detailed update on program budget and schedule is briefed at least quarterly to the Water Reclamation Facility Citizens Advisory Committee (WRFCAC). Regular written updates are provided to the Council, along with quarterly “major” project updates. District Transaction Tax (Measure Q) Special Revenue Fund The Measure Q fund anticipates $1.03M in revenues. This budget commits $530K to street maintenance / repair, down from $587K last year. The remainder of Measure Q funds go to specific public safety requirements, including debt service on the new fire station, the “vacation relief firefighter” position, PD School Resource Officer contribution of $77K, hose replacements for the fire department, and several other public safety items. All Measure Q expenditures are directly related to Streets and Public Safety as required by Council resolution and generally required by the Measure Q campaign. A detailed listing of expenditures is attached for Measure Q behind the relevant budget worksheet. 2017/18 Adopted Budget Page 14 15 FY17-18 Adopted Budget Letter Morro Bay Tourism Business Improvement District (MB TBID) Special Revenue Fund The MB TBID budget is balanced. The budget includes revenues from the TBID assessment, and a $134,928 contribution from the General Fund directed by Council resolution. The majority of expenditures are for our marketing and public relations contract, previously approved by Council, with Mental Marketing. The budget also includes funds for up to $60,000 to support enduring community grants, and $30,000 to support emerging opportunities. Additionally, a transfer out to a TBID accumulation fund of $35,954 has been including to begin setting aside appropriate levels of fund reserves if/when another recession hits. Parking-in-Lieu Fund While there are no planned expenditures from the parking-in-lieu fund projected for FY16/17, this paragraph serves, along with the permanent note on that fund page, to codify some activity in that fund that occurred in FY15/16. Several years ago, the city borrowed $500,000 from this fund to help purchase certain property in the city. This property included the old “Brannigans Restaurant” and the parking lot on the NE corner of the intersection of Pacific and Market streets. This was an appropriate use of parking- in-lieu as the city acquired a parking lot. In 2011, the city sold the restaurant and parking lot property to a private entity and the $500,000 of parking-in-lieu funds were to be repaid to the parking-in-lieu fund when the note from that sale, help by the city, was paid off. In December 2015, the city repurchased the property, including the parking lot. In late 2015 a formal appraisal conducted by a licensed appraiser valued the parking lot at $500,000. Thus, the parking-in-lieu fund is now rebalanced. That is, the $500,000 originally taken from the fund has now gone to purchase a parking lot appraised for $500,000. Should the City divest itself of this property in the future, the parking-in-lieu fund should be reimbursed $500,000. 1-Time Spending and Governmental Impact Fees Accumulation Fund Governmental Impact fees are collected as part of the planning and permitting fees for all development. While there are certain restrictions, and some are reserved for specific areas (police, fire, streets, administration, etc), these fees can be a source of funds for important City objectives. FY 2017/18 Adopted Goals and Objectives The city’s FY 2017/18 adopted goals and objectives list is included as Attachment 3. This list highlights the City’s 4 Goals and 26 Objectives (including some with sub-objectives), greatly reduced from the FY2016/17 10 Goals and 88 objectives. While budgeted costs are not directly linked to these goals/objectives, several budgeted items that do have costs have been included in the proposed budget with the target of objective achievement. We are encouraged by this reduction in the amount of goals and objectives, which will enable a more focused approach on goal/objective achievement. This refinement is very important given our smallish staffing levels to meet the needs of our quaint community. 2017/18 Adopted Budget Page 15 2017/18 Adopted Budget Page 16 2017/18 Adopted Budget Page 17 2017/18 Adopted Budget Page 18 2017/18 Adopted Budget Page 19 2017/18 Adopted Budget Page 20 1 Finance Department Deputy City Manager Public Works Department Community Development Police Department Fire /EMS Operations Harbor Department City Manager Information Technology Economic Development Recreation Services Public Engagement Budget and Accounting Maintenance Water Engineering Wastewater Building Code Enforcement Planning Support Services Patrol Fire Marshall Fire / EMS Operations Harbor Maintenance Harbor Safety Lease Management City Staff Organization Overview by Department Admin Admin Departments Sub-Department Organizations Legend Tourism DivisionBilling, Etc City Clerk Human Resources 2017/18 Adopted Budget Page 21 Staff Organization City Manager’s Office City Manager Vacant FTE 40 City Clerk City Clerk D. Swanson FTE 40 Legal Assistant / Deputy City Clerk L.Kudzma FTE 40 Full Time 4 Part Time 30+ Part Time 20+ Part Time Under 20 Contract / Other 1 Citizens of Morro Bay City Council City Attorney J. Pannone (A&W) Con Human Resources Human Resources Analyst L.Goforth FTE 40 2017/18 Adopted Budget Page 22 Staff Organization Finance Department Finance Director/City Treasurer C.Schmollinger FTE 40 Financial Services Budget and Accounting Manager S. Martin FTE 40 Account Clerk III A.Watterworth FTE 40 Account Clerk II M.Lomelli FTE 40 Account Clerk II K.Patrick Senior Account Technician V.Webb FTE 40 FTE Positions 6 Part Time 30+ Part Time 20+ Part Time Under 20 1 Contract / Other FTE 40 2017/18 Adopted Budget Page 23 Staff Organization Deputy City Manager Deputy City Manager I. Taumoepeau FTE 40 Recreation Services Recreation Services Manager K. Carmichael FTE 40 Information Technology Information Technology Manager S. Doerr FTE 40 Economic Development Public Engagement Public Engagement I. Taumoepeau Sports Supervisor K. Sweeney FTE 40 Full Time 7 Part Time 30+ Part Time 20+7 Part Time Under 20 Contract / Other Children's Program Coordinator A. Gallardo Reservation Permits/ Teen Coordinator E. Gallardo Senior Program Coordinator B. Lock PT 20 Admin Assistant Vacant PT 20 Receptionist S. Charette PT 20 2 Sports Coordinators C. Stapley & T. Fetchner PT 20+ Tourism Manager J. Little FTE 40 Sales Manager Vacant Admin Assistant L. Gilson/S.McCallister PT 20+ FTE 40 FTE 40 2017/18 Adopted Budget Page 24 Staff Organization Public Works Department (1 of 2) Director/City Engineer R.Livick FTE 40 Administration Management Analyst J.Burlingame FTE 40 Admin Utilities Tech G.Gregory FTE 40 Wastewater WW Division Manager (Collections and Treatment) J.Mueller FTE 40 WWTP Supervisor J.Gunderlock FTE 40 Leadworker R.Fernandez FTE 40 Operator OIT (WWS) A.Hegg FTE 40 Operator OIT (WWS) K. Quaglino FTE 40 Operator II / Analyst S.Aschenbrener FTE 40 Operator II (WWS) L. Mortimer FTE 40 Operator II D.Lundy FTE 40 Engineering Division Engineering Manager R.Sauerwein FTE 40 Assoc. Civil Engineer J.Whelan FTE 40 Environmental Programs Manager D.Hanson FTE 40 Engineering Technician III P.Newman FTE 40 FTE Positions 15 Part Time 30+1 Part Time 20+ Part Time Under 20 Contract / Other Engineering /GIS Technician III Vacant PT 40 2017/18 Adopted Budget Page 25 Staff Organization Public Works Department (2 of 2) Water Division Supervisor J.James FTE 40 Operator III D.Pitman FTE 40 Operator II D.Francis FTE 40 Operator II. T.Paslay FTE 40 Operator I B.Koeper FTE 40 Maintenance Division Maintenance Superintendent M.Wilcox FTE 40 Field Maintenance Supervisor M.Bishop FTE 40 Maint. Worker III W.Roza FTE 40 Maint. Worker II C.Galamay FTE 40 Maint. Worker II R. Trout FTE 40 Maint. Worker II J.Whitcomb FTE 40 Maint. Worker II D.Pruitt FTE 40 Wastewater Collection Division Coll. Sys. Supervisor D.Zevely FTE 40 Operator III R.Victor FTE 40 Operator II M.Michaels (WWS) FTE 40 Operator II A.Tapia FTE 40 Operator II C.Rocha FTE 40 Maint. Worker II J.Kelly FTE 40 Fleet Mechanic P. Bernard FTE 40 Full Time 20 Part Time 30+2 Part Time 20+3 Part Time Under 20 Contract / Other 0 Maint. Worker II Vacant FTE 40 Maint. Aide/ Worker I 5 PT Employees PT 40 20 2017/18 Adopted Budget Page 26 Staff Organization Community Development Department Community Development Director S. Graham FTE 40 Administration Office Assistant G. Arias FTE 40 Planning Division Senior Planner C. Jacinth FTE 40 Asst./ Associate Planner J. Gargiulo FTE 40 Contract Planner W. McIlvaine Con Full Time 6 Part Time 30+1 Part Time 20+3 Part Time Under 20 Contract / Other 1 Building Division Building Inspector C. Lockridge FTE 40 Building Permit Technician P. Bruno FTE 40 Code Enforcement Code Enforcement Officer T. Kristofek PT 20 Code Enforcement Officer D. Crockett PT 30 Contract/Intern Planner Ryan Russell PT 20 Office Asst. III P. Zaragosa PT 20 2017/18 Adopted Budget Page 27 Staff Organization Police Department Commander J. Cox FTE 40 Sergeant R. Catlett FTE 40 Sergeant G. Mettifuco FTE 40 Sergeant T. Mosqueda FTE 40 Sergeant N. Canby FTE 40 Operations Division Senior Officer R. Hufstetler FTE 40 Senior Officer J. Painter FTE 40 Police Officer (Investigations) G. Stuart FTE 40 Police Officer G. Marvos FTE 40 Police Officer G. Gruich FTE 40 Police Officer T. Nolan FTE 40 Police Officer L. Riddering FTE 40 Police Officer M. Campbell FTE 40 Support Services Support Services Coordinator B. Johnson FTE 40 Support Services Tech ( Records) M. Burgeson FTE 40 Property / Evidence Tech T. Ponder PT 20 Records Clerk B. Musloff PT 20 Police Officer D. Flores FTE 40 **Police Officer (SRO) M. Lomeli FTE 40 Full Time 19 Part Time 30+ Part Time 20+2 Part Time Under 20 Contract / Other 1 Police Chief G. Allen FTE 40 Corporal (Investigations) M. Martin FTE 40 Senior Officer D. Cullum FTE 40 **Position is annual allocation. To be reviewed throughout FY with deletion assumed through attrition during FY17/18 2017/18 Adopted Budget Page 28 Staff Organization Fire Department Fire Captain Paramedic T. Gailey FTE 56 Engineer Paramedic M. Hoese FTE 56 Engineer Paramedic S. Subler FTE 56 Engineer Paramedic G. Brady FTE 56 (7) Fire Reserves On Call PT 20 Fire / EMS Operations Fire Captain Paramedic M. Talmadge FTE 56 Fire Captain Paramedic G. Rees FTE 56 Engineer Paramedic T. Hasch FTE 56 Engineer Paramedic B. Kato FTE 56 Limited Term Firefighter S. Watson Con 56 Engineer Paramedic J. Simpson FTE 56 Engineer Paramedic M. Szopinski FTE 56 Firefighter (Probation) M. Kelly FTE 56 Administration Fire Marshal Vacant Administrative Assistant D. McLean FTE 30 (7) Fire Reserves On Call PT 20 (6) Fire Reserves On Call PT 20 Full Time 13.75 Part Time 30+ Part Time 20+ Part Time Under 20 20 Contract / Other 1 Fire Chief S. Knuckles FTE 40 FTE 40 2017/18 Adopted Budget Page 29 Staff Organization Harbor Department Harbor Director E. Endersby FTE 40 Business Operations Harbor Business Coordinator L. Stilts FTE 40 Harbor Patrol Operations Harbor Patrol Supervisor B. Kelly FTE 40 Patrol Officer J. Jacobs FTE 40 Patrol Officer S. Mather FTE 40 Patrol Officer. D. Stein FTE 40Harbor Maintenance R. Allen PT 20+ Full Time 7 Part Time 30+ Part Time 20+ Part Time Under 20 Contract / Other 0 General Harbor Operations Admin Tech C. Lowe FTE 40 2017/18 Adopted Budget Page 30 City of Morro Bay, CACombined Salary ScheduleCITY OF MORRO BAYCOMBINED SALARY SCHEDULEFISCAL YEAR 2016-17TITLEGROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6ACCOUNT CLERK IS 36,980 38,829 40,770 42,809 44,949 COLLECTION SYSTEM OPERATOR IS 36,980 38,829 40,770 42,809 44,949 OFFICE ASST. IIIS 36,980 38,829 40,770 42,809 44,949 OFFICE ASST. IVS 39,981 41,980 44,079 46,283 48,597 ACCOUNT CLERK IIS 41,537 43,614 45,795 48,084 50,489 COLLECTION SYS OPERATOR IIS 41,537 43,614 45,795 48,084 50,489 CONSOLIDATED MAINTENANCE WRK II S 41,537 43,614 45,795 48,084 50,489 WATER SYSTEM OPERATOR IS 41,537 43,614 45,795 48,084 50,489 WASTEWATER SYSTEMS OITS 41,537 43,614 45,795 48,084 50,489 WWTP OITS 41,537 43,614 45,795 48,084 50,489 PERMIT TECHNICIANS 42,539 44,666 46,899 49,244 51,707 ACCOUNT CLK IIIS 44,487 46,711 49,047 51,499 54,074 COLLECTION SYS OPERATOR IIIS 44,487 46,711 49,047 51,499 54,074 C0NSOLIDATED MAINTENANCE WRK III S 44,487 46,711 49,047 51,499 54,074 WASTEWATER SYSTEM OP IS 44,487 46,711 49,047 51,499 54,074 WWTP OPR IS 44,487 46,711 49,047 51,499 54,074 ADMINISTRATIVE TECHNICIANS 45,273 47,537 49,914 52,409 55,030 ADMINISTRATIVE UTILITIES TECHS 45,273 47,537 49,914 52,409 55,030 PERMIT TECHNICIAN - CERTIFIEDS 45,273 47,537 49,914 52,409 55,030 SUPPORT SERVICES TECHNICIANS 45,273 47,537 49,914 52,409 55,030 MECHANICS 46,721 49,057 51,510 54,086 56,790 LEGAL ASSISTANT/DEPUTY CITY CLERK C 49,079 51,533 54,110 56,815 59,656 WATER SYSTEM OPERATOR IIS 49,488 51,962 54,560 57,289 60,153 WASTEWATER SYSTEMS OP IIS 49,488 51,962 54,560 57,289 60,153 WWTP OPERATOR IIS 49,488 51,962 54,560 57,289 60,153 SUPPORT SERVICES COORDINATORC 51,346 53,913 56,609 59,439 62,411 HARBOR PATROL OFFICERS 51,618 54,199 56,909 59,754 62,742 COLLECTIONS SYS LEADWORKERS 51,767 54,355 57,073 59,927 62,923 S = SEIU; F = Fire; P = Police; C = Confidential; M = Management; E = ExecutivePage 1 of 32017/18 Adopted Budget Page 31 City of Morro Bay, CACombined Salary ScheduleCITY OF MORRO BAYCOMBINED SALARY SCHEDULEFISCAL YEAR 2016-17TITLEGROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6CONSOLIDATED MAINT LW - STS/PARKS/FACS 51,767 54,355 57,073 59,927 62,923 ENGINEERING TECHNICIAN IIIS 51,767 54,355 57,073 59,927 62,923 WATER SYSTEM OPERATOR IIIS 51,962 54,561 57,289 60,153 63,161 WASTEWATER SYSTEMS OP IIIS 51,962 54,561 57,289 60,153 63,161 WWTP OPERATOR II/LAB ANALYSTS 51,962 54,561 57,289 60,153 63,161 RECREATION SUPERVISORS 52,919 55,565 58,344 61,261 64,324 ASSISTANT PLANNERS 53,249 55,911 58,707 61,642 64,724 ASSISTANT CIVIL ENGINEERS 55,376 58,144 61,052 64,104 67,309 BUILDING INSPECTORS 55,376 58,144 61,052 64,104 67,309 ENGINEERING TECHNICIAN IVS 55,376 58,144 61,052 64,104 67,309 WASTEWATER SYSTEMS LEADWORKERS 55,376 58,144 61,052 64,104 67,309 WWTP LEADWORKERS 55,376 58,144 61,052 64,104 67,309 FIREFIGHTERF 55,658 58,441 61,363 64,431 67,652 HUMAN RESOURCES ANALYSTC 57,564 60,442 63,464 66,637 69,969 SENIOR ACCOUNTING TECHNICIANC 57,564 60,442 63,464 66,637 69,969 HARBOR BUSINESS COORDS 57,641 60,523 63,550 66,727 70,063 RECREATION COORDINATORS 57,641 60,523 63,550 66,727 70,063 POLICE OFFICERP 59,004 61,955 65,052 68,305 71,720 75,306 HARBOR PATROL SUPERVISORS 60,801 63,841 67,033 70,385 73,904 FIRE ENGINEERF 60,849 63,891 67,086 70,440 73,962 ASSOCIATE CIVIL ENGINEERS 61,972 65,070 68,324 71,740 75,327 ASSOCIATE PLANNERS 61,972 65,070 68,324 71,740 75,327 BUILDING INSPECTOR/PLANSS 61,972 65,070 68,324 71,740 75,327 COLLECTION SYSTEM SUPERVISORS 61,972 65,070 68,324 71,740 75,327 CONSOLIDATED MAINT FIELD SUPVS 61,972 65,070 68,324 71,740 75,327 WATER SYSTEM SUPERVISORS 61,972 65,070 68,324 71,740 75,327 WWTP SUPERVISORS 61,972 65,070 68,324 71,740 75,327 MANAGEMENT ANALYSTM 63,275 66,439 69,761 73,249 76,912 POLICE DETECTIVEP 61,955 65,052 68,305 71,720 75,306 79,072 S = SEIU; F = Fire; P = Police; C = Confidential; M = Management; E = ExecutivePage 1 of 32017/18 Adopted Budget Page 32 City of Morro Bay, CACombined Salary ScheduleCITY OF MORRO BAYCOMBINED SALARY SCHEDULEFISCAL YEAR 2016-17TITLEGROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6POLICE SCHOOL RESOURCE OFFICER P 61,955 65,052 68,305 71,720 75,306 79,072 POLICE SENIOR OFFICERP 61,955 65,052 68,305 71,720 75,306 79,072 POLICE CORPORALP 62,530 65,657 68,940 72,387 76,006 79,806 FIRE CAPTAINF 69,946 73,443 77,116 80,971 85,020 WASTEWATER SYSTEMS SUPVS 71,267 74,831 78,572 82,501 86,626 BUDGET/ACCOUNTING MANAGERM 74,002 77,703 81,588 85,667 89,950 CAPITAL PROJECTS MANAGERM 74,002 77,703 81,588 85,667 89,950 CONSOLIDATED MAINTENANCE SUPERINTENM 74,002 77,703 81,588 85,667 89,950 ENVIRONMENTAL PROGRAMS MANAGER M 74,002 77,703 81,588 85,667 89,950 INFORMATION SERVICES TECHNICIAN M 74,002 77,703 81,588 85,667 89,950 TOURISM MANAGERM 74,002 77,703 81,588 85,667 89,950 POLICE SERGEANTP 73,585 77,264 81,127 85,184 89,443 93,915 PLANNING MANAGERM 81,404 85,475 89,748 94,236 98,947 CITY CLERK / RISK MANAGERM 81,800 85,890 90,185 94,694 99,428 FIRE MARSHALF 83,032 87,184 91,543 96,120 100,926 COMMUNITY DEVELOPMENT MANAGER M 95,936 100,733 105,770 111,058 116,611 UTILITY DIVISION MANAGERM 95,936 100,733 105,770 111,058 116,611 WASTEWATER DIVISION MANAGERM 95,936 100,733 105,770 111,058 116,611 POLICE COMMANDERM 107,707 113,092 118,747 124,684 130,919 DEPUTY CITY MANAGERE 117,588 123,467 129,640 136,122 142,928 COMMUNITY DEVELOPMENT DIRECTOR E 117,588 123,467 129,640 136,122 142,928 FINANCE DIRECTORE 117,588 123,467 129,640 136,122 142,928 PUBLIC WORKS DIRECTORE 121,973 128,072 134,475 141,199 148,259 ADMINISTRATIVE SERVICES DIRECTORE 121,973 128,072 134,475 141,199 148,259 HARBOR DIRECTORE 124,248 130,460 136,983 143,833 151,024 swornFIRE CHIEFE 124,248 130,460 136,983 143,833 151,024 swornPOLICE CHIEFE 124,248 130,460 136,983 143,833 151,024 swornASSISTANT CITY MANAGERE 126,790 133,130 139,786 146,775 154,114 CITY MANAGERE 160,000 160,000 160,000 160,000 160,000 S = SEIU; F = Fire; P = Police; C = Confidential; M = Management; E = ExecutivePage 1 of 32017/18 Adopted Budget Page 33 City of Morro Bay, CACombined Salary ScheduleCITY OF MORRO BAYCOMBINED SALARY SCHEDULEFISCAL YEAR 2017-18TITLEGROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6ACCOUNT CLERK IS 37,720 39,606 41,586 43,665 45,848 COLLECTION SYSTEM OPERATOR IS 37,720 39,606 41,586 43,665 45,848 OFFICE ASST. IIIS 37,720 39,606 41,586 43,665 45,848 OFFICE ASST. IVS 40,781 42,820 44,961 47,209 49,569 ACCOUNT CLERK IIS 42,368 44,486 46,710 49,046 51,498 COLLECTION SYS OPERATOR IIS 42,368 44,486 46,710 49,046 51,498 CONSOLIDATED MAINTENANCE WRK II S 42,368 44,486 46,710 49,046 51,498 WATER SYSTEM OPERATOR IS 42,368 44,486 46,710 49,046 51,498 WASTEWATER SYSTEMS OITS 42,368 44,486 46,710 49,046 51,498 WWTP OITS 42,368 44,486 46,710 49,046 51,498 PERMIT TECHNICIANS 43,390 45,559 47,837 50,229 52,741 ACCOUNT CLK IIIS 45,377 47,646 50,028 52,529 55,156 COLLECTION SYS OPERATOR IIIS 45,377 47,646 50,028 52,529 55,156 C0NSOLIDATED MAINTENANCE WRK III S 45,377 47,646 50,028 52,529 55,156 WASTEWATER SYSTEM OP IS 45,377 47,646 50,028 52,529 55,156 WWTP OPR IS 45,377 47,646 50,028 52,529 55,156 ADMINISTRATIVE TECHNICIANS 46,178 48,487 50,912 53,457 56,130 ADMINISTRATIVE UTILITIES TECHS 46,178 48,487 50,912 53,457 56,130 PERMIT TECHNICIAN - CERTIFIEDS 46,178 48,487 50,912 53,457 56,130 SUPPORT SERVICES TECHNICIANS 46,178 48,487 50,912 53,457 56,130 MECHANICS 47,655 50,038 52,540 55,167 57,925 LEGAL ASSISTANT/DEPUTY CITY CLERK C 50,061 52,564 55,192 57,951 60,849 WATER SYSTEM OPERATOR IIS 50,478 53,002 55,652 58,434 61,356 WASTEWATER SYSTEMS OP IIS 50,478 53,002 55,652 58,434 61,356 WWTP OPERATOR IIS 50,478 53,002 55,652 58,434 61,356 SUPPORT SERVICES COORDINATORC 52,567 55,195 57,955 60,853 63,895 HARBOR PATROL OFFICERS 52,650 55,283 58,047 60,949 63,997 COLLECTIONS SYS LEADWORKERS 52,802 55,442 58,215 61,125 64,182 S = SEIU; F = Fire; P = Police; C = Confidential; M = Management; E = Executive1 of 42017/18 Adopted Budget Page 34 City of Morro Bay, CACombined Salary ScheduleCITY OF MORRO BAYCOMBINED SALARY SCHEDULEFISCAL YEAR 2017-18TITLEGROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6CONSOLIDATED MAINT LW S 52,802 55,442 58,215 61,125 64,182 ENGINEERING TECHNICIAN IIIS 52,802 55,442 58,215 61,125 64,182 WATER SYSTEM OPERATOR IIIS 53,001 55,651 58,434 61,356 64,423 WASTEWATER SYSTEMS OP IIIS 53,001 55,651 58,434 61,356 64,423 WWTP OPERATOR II/LAB ANALYSTS 53,001 55,651 58,434 61,356 64,423 RECREATION SUPERVISORS 53,977 56,676 59,510 62,486 65,610 ASSISTANT PLANNERS 54,314 57,030 59,881 62,875 66,019 ASSISTANT CIVIL ENGINEERS 56,484 59,308 62,273 65,387 68,656 BUILDING INSPECTORS 56,484 59,308 62,273 65,387 68,656 ENGINEERING TECHNICIAN IVS 56,484 59,308 62,273 65,387 68,656 WASTEWATER SYSTEMS LEADWORKERS 56,484 59,308 62,273 65,387 68,656 WWTP LEADWORKERS 56,484 59,308 62,273 65,387 68,656 FIREFIGHTERF 56,771 59,610 62,590 65,720 69,006 HUMAN RESOURCES ANALYSTC 58,715 61,651 64,734 67,970 71,369 SENIOR ACCOUNTING TECHNICIANC 58,715 61,651 64,734 67,970 71,369 SUPPORT SERVICES MANAGERM 58,715 61,651 64,734 67,970 71,369 HARBOR BUSINESS COORDS 58,794 61,734 64,820 68,061 71,464 RECREATION COORDINATORS 58,794 61,734 64,820 68,061 71,464 POLICE OFFICERP 60,184 63,193 66,353 69,671 73,154 76,812 HARBOR PATROL SUPERVISORS 62,017 65,118 68,374 71,792 75,382 FIRE ENGINEERF 62,066 65,169 68,428 71,849 75,442 ASSOCIATE CIVIL ENGINEERS 63,211 66,372 69,691 73,175 76,834 ASSOCIATE PLANNERS 63,211 66,372 69,691 73,175 76,834 BUILDING INSPECTOR/PLANSS 63,211 66,372 69,691 73,175 76,834 COLLECTION SYSTEM SUPERVISORS 63,211 66,372 69,691 73,175 76,834 CONSOLIDATED MAINT FIELD SUPVS 63,211 66,372 69,691 73,175 76,834 WATER SYSTEM SUPERVISORS 63,211 66,372 69,691 73,175 76,834 WWTP SUPERVISORS 63,211 66,372 69,691 73,175 76,834 MANAGEMENT ANALYSTM 64,541 67,768 71,156 74,714 78,449 S = SEIU; F = Fire; P = Police; C = Confidential; M = Management; E = Executive2 of 42017/18 Adopted Budget Page 35 City of Morro Bay, CACombined Salary ScheduleCITY OF MORRO BAYCOMBINED SALARY SCHEDULEFISCAL YEAR 2017-18TITLEGROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6POLICE DETECTIVEP 63,194 66,354 69,671 73,155 76,813 80,653 POLICE SCHOOL RESOURCE OFFICER P 63,194 66,354 69,671 73,155 76,813 80,653 POLICE SENIOR OFFICERP 63,194 66,354 69,671 73,155 76,813 80,653 POLICE CORPORALP 63,781 66,970 70,318 73,834 77,526 81,402 FIRE CAPTAINF 71,345 74,912 78,658 82,591 86,720 WASTEWATER SYSTEMS SUPVS 72,692 76,327 80,143 84,150 88,358 BUDGET/ACCOUNTING MANAGERM 75,482 79,256 83,219 87,380 91,749 CAPITAL PROJECTS MANAGERM 75,482 79,256 83,219 87,380 91,749 CONSOLIDATED MAINTENANCE SUPERINTENM 75,482 79,256 83,219 87,380 91,749 ENVIRONMENTAL PROGRAMS MANAGER M 75,482 79,256 83,219 87,380 91,749 INFORMATION SERVICES TECHNICIAN M 75,482 79,256 83,219 87,380 91,749 RECREATION SERVICES MANAGERM 75,482 79,256 83,219 87,380 91,749 SENIOR PLANNERM 75,482 79,256 83,219 87,380 91,749 TOURISM MANAGERM 75,482 79,256 83,219 87,380 91,749 POLICE SERGEANTP 75,057 78,810 82,750 86,888 91,232 95,793 PLANNING MANAGERM 83,032 87,184 91,543 96,120 100,926 CITY CLERK / RISK MANAGERM 83,436 87,608 91,988 96,588 101,417 FIRE MARSHALF 84,693 88,927 93,374 98,042 102,944 COMMUNITY DEVELOPMENT MANAGER M 97,855 102,747 107,885 113,279 118,943 UTILITY DIVISION MANAGERM 97,855 102,747 107,885 113,279 118,943 WASTEWATER DIVISION MANAGERM 97,855 102,747 107,885 113,279 118,943 POLICE COMMANDERM 109,861 115,354 121,122 127,178 133,537 DEPUTY CITY MANAGERE 119,940 125,937 132,234 138,845 145,788 COMMUNITY DEVELOPMENT DIRECTOR E 119,940 125,937 132,234 138,845 145,788 FINANCE DIRECTORE 119,940 125,937 132,234 138,845 145,788 PUBLIC WORKS DIRECTORE 124,412 130,633 137,165 144,023 151,224 ADMINISTRATIVE SERVICES DIRECTORE 124,412 130,633 137,165 144,023 151,224 HARBOR DIRECTORE 126,733 133,070 139,723 146,709 154,045 swornFIRE CHIEFE 126,733 133,070 139,723 146,709 154,045 swornS = SEIU; F = Fire; P = Police; C = Confidential; M = Management; E = Executive3 of 42017/18 Adopted Budget Page 36 City of Morro Bay, CACombined Salary ScheduleCITY OF MORRO BAYCOMBINED SALARY SCHEDULEFISCAL YEAR 2017-18TITLEGROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6POLICE CHIEFE 126,733 133,070 139,723 146,709 154,045 swornASSISTANT CITY MANAGERE 129,326 135,792 142,582 149,711 157,196 CITY MANAGERE 160,000 160,000 160,000 160,000 160,000 S = SEIU; F = Fire; P = Police; C = Confidential; M = Management; E = Executive4 of 42017/18 Adopted Budget Page 37 CITY OF MORRO BAY ELECTED AND CITY OFFICIAL COMMISSIONS, BOARDS, AND COMMITTEES Elected Officials Title Term Expires Jamie Irons Mayor November 2018 John Headding Mayor Pro Tempore November 2018 Matt Makowetski Councilmember November 2018 Robert Davis Councilmember November 2020 Marlys McPherson Councilmember November 2020 Planning Commission (PC) Public Works Advisory Board Robert Tefft Chair Ric Deschler Chair Gerald Luhr Commissioner Stephen Shively Vice-Chair Michael Lucas Commissioner Jan Goldman Commissioner Joseph Ingraffia Commissioner Chris Parker Commissioner Richard Sadowski Commissioner Stewart Skiff Commissioner John Erwin Chris Erlendson Commissioner Commissioner Morro Bay Tourism Business Imprvmnt Dist Harbor Advisory Board Aaron Graves Chair Ron Reisner Chair Charlie Yates Margaret Juren Vice-Chair Member Lynn Meissen Bill Luffee Vice-Chair Member Taylor Newton Member Gene Doughty Member Steven Allen Member Neal Maloney Member Sean Green Member Dana McClish Member Vacant Member Jeremiah O’Brien Member Recreation and Parks Commission Citizens Oversight/Finance Advisory Committee Drew Sidaris Chair Barbara Spagnola Chair Bob Swain Jeffrey Cox Vice-Chair Commissioner Bart Beckman John Erwin Member Member Michelle Morosin Commissioner David Betonte Member Kevin Carroll Commissioner John Erwin Member Skip Sorich Commissioner Dawn Addis Member Vacant Commissioner Walter Heath Member City Officials Position Vacant Craig Schmollinger City Manager Acting City Manager Joseph Pannone City Attorney Ikani Taumoepeau Deputy City Manager Greg Allen Police Chief Eric Endersby Harbor Director Scot Graham Community Development Director Steve Knuckles Fire Chief Robert Livick Public Works Director Craig Schmollinger Finance Director Dana Swanson City Clerk 2017/18 Adopted Budget Page 38 CITY OF MORRO BAY ELECTED AND CITY OFFICIALS COMMISSIONS, BOARDS, AND COMMITTEES Water Reclamation Facility Citizen General Plan/Local Coastal Program Advisory Committee (WRFCAC) Advisory Board (GPAC) John Diodati Chair Robert Tefft Chair Barbara Spagnola Vice-Chair Rich Buquet Member Paul Donnelly Member Jan Goldman Member Mary (Ginny) Garelick Member Jeffrey Heller Member Dale Guerra Member Susan Schneider Member Valerie Levulett Barbara Spagnola Member Member Glenn Silloway Melani Smith Member Member Ann Fullerton Richard Sadowski Member PC Appointee Susan Stewart Vacant Member Member Steven Shively PWAB Appointee 2017/18 Adopted Budget Page 39 CITY OF MORRO BAYSCHEDULE OF SALARY & BENEFITS DISTRIBUTION2017/18 ADOPTED BUDGETTotal Salary &Benefits to City City City Clerk & Human Deputy Accounting Police Support Fire Public Consolidated Tourism Bus. CommunityDivisionDistributeCouncilManagerLegalResourcesCity Mgr& TreasuryOperationsServicesOperationsWorksMaintenanceImpr. Dist.DevelopmentCity Council76,742 76,742 City Manager216,140 216,140 City Clerk/Legal/HR322,413 194,463 127,950 Deputy City Manager99,306 99,306 Accounting & Treasury 488,860 488,860 Police3,413,048 3,059,585 221,064 Fire2,535,392 2,275,113 Public Works/Cons Maint 1,878,397 525,540 1,308,398 Community Development 817,023 817,023 Recreation Services858,951 Tourism Bus. Impr. District 193,801 193,801 Water807,177 Sewer591,989 Harbor1,137,603 Transit79,775 Risk Management52,990 Information Technology 224,052 WWTP1,018,213 14,811,872 76,742 216,140 194,463 127,950 99,306 488,860 3,059,585 221,064 2,275,113 525,540 1,308,398 193,801 817,023 2017/18 Adopted Budget Page 40 CITY OF MORRO BAYSCHEDULE OF SALARY & BENEFITS DISTRIBUTION2017/18 ADOPTED BUDGETRecreation Sports & Water Sewer Harbor Transit Risk Information Wastewater Measure Q Safety Cloisters Tourism Bus.DivisionAdminYouth SvcsOperationsOperationsOperationsOperationsManagementTechnologyTreatmentFF & SROCOPSAssessmentImpr. Dist.TOTALCity Council76,742 City Manager216,140 City Clerk/Legal/HR322,413 Deputy City Manager99,306 Accounting & Treasury488,860 Police90,309 42,090 3,413,048 Fire260,279 2,535,392 Public Works/Cons Maint44,459 1,878,397 Community Development817,023 Recreation Services277,532 581,419 858,951 Tourism Bus. Impr. District193,801 193,801 Water807,177 807,177 Sewer591,989 591,989 Harbor1,137,603 1,137,603 Transit79,775 79,775 Risk Management52,990 52,990 Information Technology224,052 224,052 WWTP1,018,213 1,018,213 277,532 581,419 807,177 591,989 1,137,603 79,775 52,990 224,052 1,018,213 350,588 42,090 44,459 193,801 14,811,872 2017/18 Adopted Budget Page 41 001 General Fund 512 Other Post Employment Benefits 599 MB/CS Wastewater Treatment Fund 050 Gen. Gov. Vehicle Replacement 301 Transit Fund 515 Trust & Agency Fund 930 MB/CS Wastewater Treatment Projs 051 G/F Emergency Reserve Fund 920 Transit Capital Imprv. Fund 052 G/F Facility Maint. Fund 470 G/F Projects Accumulation 460 G/F Capital Replacement Accumulation 480 Opportunity 053 Water Equip. Replacement 311 Water Revenue Fund 921 Water Capital Impv. Fund 002 General Fixed Asset Group 951 Water Accumulation Fund 011 General Long Term Debt 003 District Transaction Tax (Meas Q)054 Sewer Equip. Replacement 007 MBTBID 321 Sewer Revenue Fund TBD MBTBID Accumulation Fund 922 Sewer Capital Impv. Fund 200 Comm. Development Grants 952 Sewer Accumulation Fund 201 CDBG Loan Repayment Fund 204 CDBG 04/05 Housing Rehab bor Funds 205 05/06 Home Partnership 055 Harbor Equip. Replacement 250 State Gas Tax Fund 331 Harbor Operating Fund 270 Lower Cost Visitor Accom. Fund 923 Harbor Capital Impv. Fund 280 Traffic Safety Fund 953 Harbor Accumulation Fund 282 Special Safety Grants 299 Parking In-Lieu Fund 302 LTF - Bike Path 303 LTF - Roads 500 Assessment Districts 570 Cloisters Assessment District 575 Cloisters Reserve 900 Government Impact Fees 904 Park Fee Fund 924 State Park Marina 941 Affordable Housing In-Lieu Fund 915 Governmental Capital Project Fund 430 Risk Management 450 Information Technology CITY FUNDS LIST GOVERNMENTAL FUNDS PROPRIETARY FUNDS FIDUCIARY FUNDS COMPONENT UNIT Used to account for legally separate organizations that the government must include as part of its financial reporting entity Used to account for resources that a government holds, as a trustee or agent, on behalf of an outside party that cannot be used to support the government's own programs, and includes: Trust & Agency Funds Internal Service Funds Used to account for activities primarily supported by taxes, grants, and similar revenue sources, and includes: General Funds, Account Groups, Special Revenue Funds, Debt Service Funds, Capital Projects and Internal Service Funds. Used to account for activities that receive significant support from user fees, and includes: Enterprise Funds General Funds Capital Project Funds Sewer Funds Component UnitTrust & Agency Funds Account Groups Special Revenue Funds Local Transportation Funds Enterprise Funds Water Funds 2017/18 Adopted Budget Page 42 2017/18 ADOPTED BUDGETSUMMARY OF ALL BUDGETED FUNDSREVENUESOVER(UNDER) NETBEGINNINGTRANSFERS AND ENDINGNAME OF FUND CASH OPERATING CAPITAL IN OUT OPERATING CAPITAL EXPENDITURES CASHGENERAL $ - $ 12,321,031 $- $ 1,316,851 $ (522,322) $ (13,106,456) $- $ 9,104 $ 9,104 DISTRICT TRANSACTION TAX 10,099 1,024,129 - - (116,443) (377,949) (529,737) - 10,099 MORRO BAY TOURISM BUSINESS IMPROVEMENT DIST 237,245 911,863 - 134,928 (58,861) (987,930) - - 237,245 COUNTY TOURISM MARKETING DISTRICT - 347,512 - - (6,950) (340,562) - - - GENERAL GOVERNMENT VEHICLE REPLACEMENT 135,888 - - 75,000 - - (50,000) 25,000 160,888 GENERAL FUND EMERGENCY RESERVE 3,691,729 20,000 - - (20,585) - (585) 3,691,144 GENERAL FUND FACILITY MAINTENANCE 47,655 36,000 - - - (83,655) - (47,655) - CAPITAL REPLACEMENT200,000 - - - - - - - 200,000 PROJECTS ACCUMULATION259,415 - - - - - - - 259,415 WATER EQUIPMENT REPLACEMENT264,885 - - - - - - - 264,885 SEWER EQUIPMENT REPLACEMENT675,605 - - 177,371 - - (615,000) (437,629) 237,976 HARBOR EQUIPMENT REPLACEMENT55,230 - - - - - - - 55,230 COMMUNITY DEVELOPMENT GRANTS209,969 304,951 - - - - (304,951) - 209,969 STATE GAS TAX- 305,293 - - (305,293) - - - - LOWER COST VISITOR ACCOMMODATIONS MITIGATION53,618 - - - - - - - 53,618 TRAFFIC SAFETY- 13,000 - - (13,000) - - - - SPECIAL SAFETY GRANTS109,144 100,000 - - - (51,790) (40,000) 8,210 117,354 PARKING IN-LIEU312,140 - - - - - - - 312,140 TRANSIT132,300 386,366 - - (79,775) (357,574) - (50,983) 81,317 LTF (BIKE PATHS)765 8,000 - - - - (8,000) - 765 LTF (ROADS)102,177 - - - - - - - 102,177 WATER REVENUE- 5,479,700 - - (1,087,479) (4,392,221) - - - UTILITY DISCOUNT/REBATE137,883 - - 123,200 - (123,200) - - 137,883 SEWER REVENUE- 6,266,000 - - (3,292,284) (2,973,716) - - - HARBOR OPERATING246,153 2,384,658 - - (323,708) (2,060,950) - - 246,153 RISK MANAGEMENT INTERNAL SERVICE706,896 1,386,178 - - - (1,293,661) - 92,517 799,413 INFORMATION TECHNOLOGY INTERNAL SERVICE112,363 - - 352,644 - (463,955) - (111,311) 1,052 SPECIAL ASSESSMENT DISTRICTS66,299 8,619 - - - (4,241) - 4,378 70,677 CLOISTERS ASSESSMENT DISTRICT123,337 148,944 - - - (117,759) - 31,185 154,522 TRUST AND AGENCY - GENERAL PLAN MAINTENANCE 67,553 - - - - - - - 67,553 TRUST AND AGENCY - UNFUNDED COMPENSABLE LEAVES369,973 50,000 - - - - - 50,000 419,973 MB/CSD WASTEWATER TREATMENT PLANT- 2,491,530 - - (26,741) (2,464,789) - - - GOVERNMENTAL IMPACT FEES ACCUMULATION612,794 - 161,731 - - - (112,000) 49,731 662,525 PARK IN-LIEU FEES10,214 - - - - - - - 10,214 STATE PARK MARINA SPECIAL REVENUE191,585 86,500 - - - - (10,000) 76,500 268,085 HOUSING IN-LIEU108,636 700 - - - (6,000) - (5,300) 103,336 WATER ACCUMULATION3,264,925 70,700 - 701,568 (75,200) - (743,075) (46,007) 3,218,918 SEWER ACCUMULATION8,330,242 41,115 - 1,181,142 (177,371) - (4,261,204) (3,216,318) 5,113,924 HARBOR ACCUMULATION368,772 - - 11,624 - - - 11,624 380,396 TOTAL ALL FUNDS$ 21,215,489 $ 34,192,789 $ 161,731 $ 4,074,328 $ (6,106,012) $ (29,206,408) $ (6,673,967) $(3,557,539) $ 17,657,950 TRANSFERSREVENUE ESTIMATESEXPENDITURE ESTIMATESCITY OF MORRO BAY2017/18 Adopted Budget Page 43 CITY OF MORRO BAY2017/18 ADOPTED BUDGETALL FUNDS REVENUES BY CATEGORYName of FundTaxes & AssessmentsCharges for ServicesLicenses & PermitsInvestments & RentFines & ForfeituresOther Governmental OtherInterfund Transfers2017/18 Adopted BudgetGENERAL $9,997,351 $1,149,348 $618,589 $443,927 $12,000 $ 60,394 $ 39,422 $1,316,851 $13,637,882 DISTRICT TRANSACTION TAX1,024,129 - - - - - - - 1,024,129 MORRO BAY TOURISM BUSINESS IMPROVEMENT DIST907,863 - - - - - 4,000 134,928 1,046,791 COUNTY TOURISM MARKETING DISTRIC347,512 - - - - - - - 347,512 GENERAL GOVERNMENT VEHICLE REPLACEMENT- - - - - - 75,000 75,000 GENERAL FUND EMERGENCY RESERVE- - - 20,000 - - - - 20,000 GENERAL FUND FACILITY MAINTENANCE- - - 36,000 - - - - 36,000 CAPITAL REPLACEMENT- - PROJECTS ACCUMULATION- - WATER EQUIPMENT REPLACEMENT- - - - - - - - - SEWER EQUIPMENT REPLACEMENT- - - - - - - 177,371 177,371 HARBOR EQUIPMENT REPLACEMENT- - - - - - - - - COMMUNITY DEVELOPMENT GRANTS- - - - - 304,951 - - 304,951 STATE GAS TAX- - - - - 305,293 - - 305,293 LOWER COST VISITOR ACCOMMODATIONS MITIGATION- - - - - - - - - TRAFFIC SAFETY- - - - 13,000 - - - 13,000 SPECIAL SAFETY GRANTS- - - - - 100,000 - - 100,000 PARKING IN-LIEU- - - - - - - - - TRANSIT- 44,000 - - - 342,366 - - 386,366 LTF (BIKE PATHS)- - - - - 8,000 - - 8,000 LTF (ROADS)- - - - - - - - - WATER REVENUE- 5,479,700 - - - - - - 5,479,700 UTILITY DISCOUNT/REBATE- - - - - - - 123,200 123,200 SEWER REVENUE- 6,266,000 - - - - - - 6,266,000 HARBOR OPERATING- 2,041,658 - - - 343,000 - - 2,384,658 RISK MANAGEMENT INTERNAL SERVICE- 1,385,778 - 400 - - - - 1,386,178 INFORMATION TECHNOLOGY INTERNAL SERVICE- - - - - - - 352,644 352,644 SPECIAL ASSESSMENT DISTRICTS8,619 - - - - - - - 8,619 CLOISTERS ASSESSMENT DISTRICT148,944 - - - - - - - 148,944 TRUST AND AGENCY - GENERAL PLAN MAINTENANCE FEE- - - - - - - - - TRUST AND AGENCY - UNFUNDED COMPENSABLE LEAVES- - - - - - 50,000 - 50,000 MB/CSD WASTEWATER TREATMENT PLANT- 2,491,530 - - - - - - 2,491,530 GOVERNMENTAL IMPACT FEES ACCUMULATION- 161,731 - - - - - - 161,731 PARK IN-LIEU FEES- - - - - - - - - STATE PARK MARINA SPECIAL REVENUE- 86,500 - - - - - - 86,500 HOUSING IN-LIEU- - - 700 - - - - 700 WATER ACCUMULATION- 63,200 - 7,500 - - - 701,568 772,268 SEWER ACCUMULATION- 41,115 - - - - - 1,181,142 1,222,257 HARBOR ACCUMULATION- - - - - - - 11,624 11,624 TOTAL REVENUE/TRANSFER IN ESTIMATES$ 12,434,418 $ 19,210,560 $ 618,589 $ 508,527 $ 25,000 $ 1,464,004 $ 93,422 $ 4,074,328 $ 38,428,848 2017/18 Adopted Budget Page 44 CITY OF MORRO BAY2017/18 ADOPTED BUDGETALL FUNDS EXPENDITURES BY CATEGORY2017/18Capital Debt Equip AdoptedName of Fund Personnel Supplies Services Outlay Other Service Rplcmnt Transfers BudgetGENERAL $(10,269,135) $(470,919) $(2,205,627) $- $(160,775) $- $- $(522,322) $(13,628,778) DISTRICT TRANSACTION TAX(350,588) - (544,337) (37,692) - (91,512) - - (1,024,129) MORRO BAY TOURISM BUSINESS IMPROVEMENT DIST(193,801) - (794,129) - - - - (58,861) (1,046,791) COUNTY TOURISM MARKETING DISTRIC- (340,562) - - - - - (6,950) (347,512) GENERAL GOVERNMENT VEHICLE REPLACEMENT- - - (50,000) - - - - (50,000) GENERAL FUND EMERGENCY RESERVE- - - - - - - (20,585) (20,585) GENERAL FUND FACILITY MAINTENANCE- - (83,655) - - - - - (83,655) CAPITAL REPLACEMENT- - - - - - - - - PROJECTS ACCUMULATION- - - - - - - - - WATER EQUIPMENT REPLACEMENT- - - - - - - - - SEWER EQUIPMENT REPLACEMENT- - - (615,000) - - - - (615,000) HARBOR EQUIPMENT REPLACEMENT- - - - - - - - - COMMUNITY DEVELOPMENT GRANTS- - - (304,951) - - - - (304,951) STATE GAS TAX- - - - - - - (305,293) (305,293) LOWER COST VISITOR ACCOMMODATIONS MITIGATION- - - - - - - - - TRAFFIC SAFETY- - - - - - - (13,000) (13,000) SPECIAL SAFETY GRANTS(42,090) (9,700) - (40,000) - - - - (91,790) PARKING IN-LIEU- - - - - - - - - TRANSIT(79,775) - (357,574) - - - - - (437,349) LTF (BIKE PATHS)- - - - (8,000) - - - (8,000) LTF (ROADS)- - - - - - - - - WATER REVENUE(807,177) (190,242) (3,380,522) - (14,280) - - (1,087,479) (5,479,700) UTILITY DISCOUNT/REBATE PROGRAM- - (116,032) - - - - - (116,032) SEWER REVENUE(591,989) (199,760) (487,693) - (1,694,274) - - (3,292,284) (6,266,000) HARBOR OPERATING(1,137,603) (75,443) (365,014) - (348,031) (134,859) - (323,708) (2,384,658) RISK MANAGEMENT INTERNAL SERVICE(52,990) - (1,240,671) - - - - - (1,293,661) INFORMATION TECHNOLOGY INTERNAL SERVICE(224,052) (35,000) (204,903) - - - - - (463,955) SPECIAL ASSESSMENT DISTRICTS- - (4,241) - - - - - (4,241) CLOISTERS ASSESSMENT DISTRICT(44,459) (7,000) (66,300) - - - - - (117,759) TRUST AND AGENCY - GENERAL PLAN MAINT FEE- - - - - - - - - TRUST AND AGENCY - UNFUNDED COMPENSABLE LEAVES- - - - - - - - - MB/CSD WASTEWATER TREATMENT PLANT(1,018,213) (347,050) (1,099,526) - - - - (26,741) (2,491,530) GOVERNMENTAL IMPACT FEES ACCUMULATION- - - (112,000) - - - - (112,000) PARK IN-LIEU FEES- - - - - - - - - STATE PARK MARINA SPECIAL REVENUE- - - (10,000) - - - - (10,000) HOUSING IN-LIEU- - - - (6,000) - - - (6,000) WATER ACCUMULATION- - - (743,075) - - - (75,200) (818,275) SEWER ACCUMULATION- - - (4,261,204) - - - (177,371) (4,438,575) HARBOR ACCUMULATION- - - - - - - - - TOTAL EXPENDITURE/TRANSFER OUT$ (14,811,872) $ (1,675,676) $ (10,950,224) $ (6,173,922) $ (2,231,360) $ (226,371) $- $ (5,909,794) (41,979,219) TOTAL REVENUE/TRANSFER IN38,428,848 SOURCE/(USE) OF CASH$ (3,550,371) 2017/18 Adopted Budget Page 45 Budget Overview for Fiscal Year (FY) 2017-18 The City of Morro Bay’s annual budget is more than just pages of numbers and data. It also communicates the priorities and strategic direction of our community based on goals and objectives established by the Mayor and City Council Members after input from our community. The purpose of this document is to provide citizens of Morro Bay with basic information about the City of Morro Bay’s revenues and expenditures. The FY 2017-18 Consolidated Annual Budget ($34,701,626)* Where Does the Money Come From? (Revenues) How is the Money Spent? (Expenditures) * For Details, see City Budget Document, pp. 43-45 **Includes Water, Sewer, Harbor and Transit Enterprise Funds. See page 3 of this document for a breakdown of the various enterprise funds. 2017/18 Adopted Budget Page 46 What is the General Fund? The General Fund is the main operating fund for the City of Morro Bay and provides core services including Public Safety (Police/Fire), Public Infrastructure Services, Recreation, Legal Services, Planning and Code Enforcement and Administration. The General Fund is supported primarily through taxes (sales, property, transient occupancy, business licenses and franchise taxes), various fees and charges for services collected from the City’s Enterprise Funds. It is one of many city funds that make up the consolidated annual budget shown on the previous page. FY 2017-18 General Fund Projected Revenue: $13,637,882 FY2017-18 General Fund Expenditures: $13,628,778 What do General Fund monies pay for? *Interfund Transfers reflect payments from the Enterprise Funds to reimburse the General Fund for staff time and services used by those projects. ** General Fund Transfers Out include information technology, economic development, and vehicle replacement. 2017/18 Adopted Budget Page 47 What are the Enterprise Funds? FY 2017-18 Enterprise Funds: The Enterprise Funds capture revenues and expenses necessary to provide water, sewer, harbor and local transit services. These are operated as separate and distinct not-for-profit businesses and the revenue received by each enterprise may only be used to operate, maintain and improve those services being provided. For example: Revenues from water and sewer fees may only be used to maintain and improve the water and wastewater utility systems – not to fix the streets or hire additional police officers and firefighters. *Transit operating budget includes state and local transportation funding and grants in addition to farebox revenues, trolley rental and advertising income. What is Measure Q and how is the Money Spent?FY 2017-18 Measure Q Projected Revenues: $1,019,199 In November 2006, the citizens of Morro Bay voted for a ½ cent district sales tax commonly known as “Measure Q”. The text of Measure Q states that its purpose is “To preserve Morro Bay’s safety and character by funding essential services including upgrading firefighter/paramedic equipment, fire stations, police, street and pothole repairs, improving storm drains and to protect the bay from pollution and other general city services.” Measure Q also established a Citizens Oversight Advisory Committee whose purpose is to conduct a semi-annual review of tax revenues and expenditures and report its findings to City Council. The annual estimated revenue from Measure Q is divided between departments based on the language in the Measure and department requests. 2017/18 Adopted Budget Page 48 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GENERAL FUND The General Fund was established on July 17, 1964, by the incorporation of the City. Activities financed from this Fund include legislative, administrative, legal and fiscal functions; police and fire protection services; engineering, planning, inspection, and zoning regulation services; street maintenance; and parks and recreation. The primary sources of revenue for this Fund include property tax, transient occupancy tax, and sales tax. 2017/18 Adopted Budget Page 49 GENERAL FUND FORECAST General Fund (001)2018 2019 2020 2021 2022 2023 2024 2025 Revenues: Property Tax 2,944,260 3,034,754 3,067,491 3,174,353 3,297,792 3,426,188 3,532,333 3,641,928 Property tax in-lieu (VLFAA)1,004,197 1,037,401 1,050,957 1,089,916 1,134,682 1,181,289 1,220,363 1,260,731 Homeowners Exemption 18,818 18,818 18,442 18,515 18,664 18,813 18,813 18,813 Subtotal Property Tax 3,967,275 4,090,973 4,136,889 4,282,785 4,451,138 4,626,290 4,771,509 4,921,472 Sales Tax (local)1,777,738 1,745,439 1,816,113 1,907,039 2,001,128 2,064,371 2,129,859 2,197,677 Sales Tax (triple-flip)- - - - - - - - Sales Tax (Prop 172-Safety)127,345 123,525 126,922 131,681 136,619 139,352 142,139 144,981 Subtotal Sales Tax 1,905,082 1,868,964 1,943,034 2,038,720 2,137,747 2,203,722 2,271,997 2,342,658 Property Transfer Tax 63,672 61,762 63,615 66,160 68,806 70,182 71,586 73,018 Transient Occupancy Tax 3,543,371 3,454,787 3,679,348 3,973,696 4,291,591 4,506,171 4,731,479 4,968,053 Franchises 527,483 524,845 537,967 554,106 570,729 582,143 593,786 605,662 Business Licenses 4,134,526 4,041,394 4,280,930 4,593,961 4,931,126 5,158,496 5,396,851 5,646,733 Subtotal Other Taxes 427,910 415,073 427,525 444,626 462,411 471,660 481,093 490,715 Building Permit - - - - - - - - Coastal Permits 26,520 27,050 27,591 28,143 28,706 29,280 29,866 30,463 Conditional Use Permits 25,500 24,735 25,477 26,496 27,556 28,107 28,669 29,243 Other Licenses & Permits 11,016 10,686 11,006 11,446 11,904 12,142 12,385 12,633 Subtotal Licenses & Permits 490,946 477,544 491,600 510,712 530,578 541,189 552,013 563,053 Motor Vehicle License Fee 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 State & Federal Grants 36,589 36,589 36,589 36,589 36,589 36,589 36,589 36,589 State Reimbursements 5,901 5,901 5,901 5,901 5,901 5,901 5,901 5,901 Subtotal Intergovernmental 46,990 46,990 46,990 46,990 46,990 46,990 46,990 46,990 Investment Income 1,082 - - - - - - - Rents 424,627 433,120 441,782 450,618 459,630 468,823 478,199 487,763 Subtotal Use of Money & Property 425,709 433,120 441,782 450,618 459,630 468,823 478,199 487,763 Parking Fines 4,545 4,590 4,636 4,683 4,730 4,777 4,825 4,873 Vehicle Code Fines 1,010 1,020 1,030 1,041 1,051 1,062 1,072 1,083 Other Fines 303 306 309 312 315 318 322 325 Subtotal Fines & Forfeitures 5,858 5,917 5,976 6,036 6,096 6,157 6,218 6,281 Planning & Zoning Fees 42,900 41,828 42,037 42,457 42,882 42,882 42,882 42,882 Engineering & Inspection Fees 399,500 389,513 391,460 395,375 399,328 399,328 399,328 399,328 Police Services 22,220 22,442 22,667 22,893 23,122 23,353 23,587 23,823 Fire Services 262,884 265,513 268,168 270,849 273,558 276,294 279,056 281,847 Recreation Program Fees 486,448 491,313 496,226 501,188 506,200 511,262 516,375 521,538 Other Service Charges 27,662 27,938 28,218 28,500 28,785 29,073 29,364 29,657 Subtotal Fees & Charges 1,241,614 1,238,546 1,248,775 1,261,263 1,273,875 1,282,192 1,290,592 1,299,076 Other Revenues 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 Total Revenues Before Transfers 12,221,501 12,206,948 12,599,476 13,194,584 13,840,679 14,337,359 14,817,870 15,317,526 Emergency Reserve 112,490 905,702 951,604 708,771 602,302 655,561 360,093 2,701 Measure Q (Fire overtime)96,877 99,286 101,317 103,503 105,581 107,628 109,715 111,845 Capital Projects - - - - - - - - Other Funds 25,251 25,251 25,251 25,251 25,251 25,251 25,251 25,251 Gas Tax/Traffic Safety 250,562 250,562 250,562 250,562 250,562 250,562 250,562 250,562 Transit (cost allocation plan)79,775 79,775 79,775 79,775 79,775 79,775 79,775 79,775 Water (cost allocation plan)292,413 298,261 304,226 310,311 316,517 322,847 329,304 335,890 Sewer (cost allocation plan)174,279 177,765 181,320 184,947 188,645 192,418 196,267 200,192 Harbor (cost allocation plan)294,052 299,933 305,931 312,050 318,291 324,657 331,150 337,773 Subtotal Transfers In 1,325,699 2,136,534 2,199,987 1,975,169 1,886,924 1,958,699 1,682,117 1,343,989 Total Revenue & Transfers In 13,547,200 14,343,482 14,799,462 15,169,753 15,727,603 16,296,058 16,499,987 16,661,515 Expenses: Regular Salaries & Other Pay 5,346,825 5,479,770 5,591,861 5,712,532 5,827,176 5,940,153 6,055,390 6,172,932 Part-time Wages 888,432 906,201 924,325 942,811 961,668 980,901 1,000,519 1,020,529 Overtime 383,898 393,443 401,491 410,155 418,386 426,498 434,772 443,211 Employer Paid Benefits (all) Pension 1,770,279 1,875,840 2,128,864 2,227,499 2,487,740 2,720,034 2,948,898 3,131,525 Health 993,668 1,013,542 1,033,812 1,054,489 1,075,578 1,097,090 1,119,032 1,141,412 Medicare 78,091 80,032 81,669 83,432 85,106 86,756 88,439 90,156 Workers Comp 502,653 515,151 525,688 537,033 547,810 558,431 569,265 580,315 Unemployment Insurance 30,525 31,284 31,924 32,613 33,267 33,912 34,570 35,241 Part-time benefits 67,965 69,324 70,711 72,125 73,568 75,039 76,540 78,070 Other 120,908 123,914 126,449 129,178 131,770 134,325 136,931 139,589 Vacancy Savings Rate (305,497) (314,655) (327,504) (336,056) (349,262) (361,594) (373,931) (384,989) Labor Costs Applied (50,000) (51,000) (52,020) (53,060) (54,122) (55,204) (56,308) (57,434) Subtotal Personnel 9,827,746 10,122,846 10,537,270 10,812,750 11,238,686 11,636,342 12,034,116 12,390,557 Contract Services 1,672,613 1,706,066 1,740,187 1,774,991 1,810,490 1,846,700 1,883,634 1,921,307 Utilities 362,822 370,079 377,480 385,030 392,730 400,585 408,597 416,769 Insurance 144,373 147,260 150,206 153,210 156,274 159,399 162,587 165,839 Other Services & Supplies 958,801 977,977 997,537 1,017,487 1,037,837 1,058,594 1,079,766 1,101,361 Other Expense 119,933 122,331 124,778 127,273 129,819 132,415 135,064 137,765 Contribution to Tourism 168,674 150,957 195,870 254,739 300,000 300,000 300,000 300,000 Capital Outlay 25,500 26,010 26,530 27,061 27,602 28,154 28,717 29,291 Debt Service 35,610 35,610 35,610 35,610 35,610 35,610 35,610 35,610 Transfers Out (all) Vehicle Replacement 78,162 274,268 178,084 198,345 201,296 267,226 270,675 210,689 Technology 262,394 352,146 364,567 377,389 390,626 403,386 416,035 428,003 Capital Replacement - - - - - - - 9,273 Projects Accumulation - - - - - - - - Fire Equipment Replacement 34,844 57,931 71,344 5,868 6,632 27,647 36,630 131,956 Other Total Expenses & Transfers Out 13,691,472 14,343,482 14,799,462 15,169,753 15,727,603 16,296,058 16,791,431 17,278,421 Net Surplus (Shortfall)(144,272) - - - - - (291,444) (616,906) Beginning Cash Balance 144,272 - - - - - - (291,444) Ending Cash Balance - - - - - - (291,444) (908,350) 2017/18 Adopted Budget Page 50 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Property taxes Current secured net of admin fee $ 2,520,700 $ 2,679,337 $ 2,784,194 $ 2,856,609 $ 2,944,306 Property tax in-lieu - VLF 837,251 877,079 920,597 972,150 1,004,328 Property tax in-lieu - Sales Tax 447,649 364,931 330,641 - - Subtotal 3,805,600 3,921,347 4,035,432 3,828,759 3,948,634 Other taxes Sales and use tax 1,189,656 1,207,332 1,394,145 1,704,376 1,777,664 Sales tax Prop 172 Public Safety 156,783 164,000 162,188 124,848 127,345 Property transfer tax 69,485 76,137 91,279 62,424 63,673 Transient occupancy tax 2,527,352 2,888,638 3,136,366 3,374,639 3,552,551 Franchises 505,658 492,572 513,194 517,140 527,484 Subtotal 4,448,934 4,828,679 5,297,172 5,783,427 6,048,717 Licenses and permits Business/transient vendor tax 248,181 305,844 351,055 510,520 520,730 Coastal permits 32,336 19,594 19,110 26,000 17,000 Conditional use permits 11,599 59,466 35,416 25,000 65,000 Other licenses and permits 12,906 10,865 15,624 19,800 15,859 Subtotal 305,022 395,769 421,205 581,320 618,589 Intergovernmental Homeowners subvention 19,076 18,902 18,929 18,818 19,514 Motor vehicle tax 4,500 4,347 4,168 4,500 4,500 State & Federal grants 64,278 10,085 206,607 26,589 27,479 State reimbursements 21,092 21,890 109,530 5,901 8,901 Subtotal 108,946 55,224 339,234 55,808 60,394 Use of money and property Investment income/rents 281,361 331,853 394,252 416,301 443,927 Subtotal 281,361 331,853 394,252 416,301 443,927 Fines & forfeitures Parking fines 5,799 4,660 3,926 4,500 5,000 Vehicle code fines 9,843 7,829 9,723 7,000 7,000 Other fines 5,085 2,638 2,929 1,000 - Subtotal 20,727 15,127 16,579 12,500 12,000 Charges for services Community development 279,854 369,407 534,309 442,400 534,906 Fire services 188,549 211,889 365,433 260,281 90,200 Police services 28,164 24,913 13,774 13,000 13,059 Recreation services 534,721 493,076 511,547 459,244 458,100 Other service charges 9,050 11,441 52,040 27,688 53,083 Subtotal 1,040,338 1,110,726 1,477,103 1,202,613 1,149,348 Other revenues 28,624 100,561 308,853 34,388 39,422 Subtotal general fund revenues 10,039,552 10,759,286 12,289,830 11,915,116 12,321,031 Transfers in 2,451,361 1,709,177 2,697,466 2,443,572 1,316,851 TOTAL GENERAL FUND REVENUES AND TRANSFERS IN $ 12,490,913 $ 12,468,463 $ 14,987,296 $ 14,358,688 $ 13,637,882 NOTES: CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GENERAL FUND REVENUES BY SOURCE 2017/18 Adopted Budget Page 51 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GENERAL FUND EXPENDITURES BY DEPARTMENT 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget LEGISLATIVE City Council $ (206,485) $ (142,734) $ (122,326) $ (152,477) $ (134,575) Subtotal (206,485) (142,734) (122,326) (152,477) (134,575) ADMINISTRATION City Manager (596,479) (598,152) (486,646) (277,852) (280,441) Contract Services (58,058) (46,314) (405,781) (768,105) (768,105) City Clerk Office (364,717) (309,198) (174,295) (429,382) (419,500) Deputy City Manager - (34,603) (251,799) (106,996) (117,284) Subtotal (1,019,254) (988,267) (1,318,522) (1,582,335) (1,585,330) FINANCE DEPARTMENT Accounting & Treasury (567,712) (518,352) (720,524) (735,794) (616,680) City Rental Property (29,489) (18,997) (4,473) (10,000) - Subtotal (597,201) (537,349) (724,997) (745,794) (616,680) POLICE DEPARTMENT Operations (2,776,683) (2,882,447) (3,075,489) (3,135,986) (3,336,552) Support Services (425,149) (377,613) (452,891) (231,898) (231,122) Subtotal (3,201,832) (3,260,060) (3,528,380) (3,367,884) (3,567,674) FIRE DEPARTMENT Operations (2,059,428) (2,228,423) (2,484,136) (2,487,357) (2,480,935) Emergency Operations Center (EOC)(8,238) (9,897) (4,317) (11,519) (8,967) Subtotal (2,067,666) (2,238,320) (2,488,453) (2,498,876) (2,489,902) COMMUNITY DEVELOPMENT Administration - (279,225) (733,416) (989,173) (1,053,470) Subtotal - (279,225) (733,416) (989,173) (1,053,470) PUBLIC WORKS Administration (934,210) (860,849) (612,501) (516,651) (626,349) Consolidated Maintenance (1,064,878) (1,007,320) (1,092,368) (996,520) (976,161) Streets, Street Trees, Storm Drains (420,694) (454,631) (509,612) (763,267) (864,144) Street Lighting (83,355) (101,262) (104,249) (107,200) (106,000) Curbside Recycling (22,940) (22,940) (23,832) (24,888) - Subtotal (2,526,077) (2,447,002) (2,342,562) (2,408,526) (2,572,654) RECREATION SERVICES Administration (311,157) (381,305) (192,098) (472,878) (329,703) Sports (324,596) (318,356) (348,794) (251,148) (411,856) Youth and Teen Programs (373,307) (394,966) (373,322) (235,937) (344,612) Subtotal (1,094,627) (914,214) (959,963) (1,086,171) SUBTOTAL GENERAL FUND ESTIMATES (10,123,045) (10,987,584) (12,172,870) (12,705,028) (13,106,456) Personnel vacancy rate 338,035 - Reserve for unfunded compensable leaves (46,831) - Transfers out:(2,486,752) (232,943) (719,489) Capital improvement - - - - Tourism Contribution - - - (60,000) (134,928) Information Technology ISF - - (376,357) (262,394) Vehicle replacement - - (75,000) (75,000) Capital Replacement - - (100,000) - Projects Reserve - - (125,000) - Compensable Leave Fund (50,000) Fire Equipment Replacement - - - - - TOTAL GENERAL FUND ESTIMATES $ (12,609,797) (11,220,527) (12,892,359) (13,150,181) (13,628,778) REVENUES 13,637,882 SURPLUS(SHORTFALL) $9,104 1 With the 2012/13 budget and forward, the Consolidated Maintenance budget pages are presented separately for more clarity. 2 The increase in the City Council budget is due to expenditure changes from the City Manager's budget to the City Council plus $89k Council grants for the 2013/14 fiscal year. 3 The 2014/15 Police budget reflects an offset from the San Luis Coastal Unified School District for 50% funding of the SRO ($60,000) 4 In 2015/16, the Community Development Department was separated out from Public Services, and Public Services has been renamed "Public Works." Also, the consolidated maintenance divisions have been moved to Public Works. Contract Service includes attorney and visitors center exenses for FY15/16 5 In 2017/18, Police Budget reflects the cost of 1/2 of the SRO position as the San Luis Coastal Unified Schoold District is no longer funding 1/2 of this position. 2017/18 Adopted Budget Page 52 CITY OF MORRO BAY2017/18 ADOPTED BUDGETGENERAL FUND EXPENDITURES BY DIVISION AND CATEGORY2017/18Capital Debt Equipment AdoptedDepartment NamePersonnel Supplies Services Outlay Other Service Replacement Transfers BudgetCity Council$ (76,742) $ (100) $ (46,233) $- $ (11,500) $- $- - $ (134,575) City Manager(216,140) (5,287) (39,014) - (20,000) - - - (280,441) Contract Services- - (768,105) - - - - - (768,105) City Clerk Office/HR/Elections(322,413) (6,074) (91,013) - - - - - (419,500) Deputy City Manager(99,306) (485) (17,493) - - - - - (117,284) Accounting & Treasury(488,860) (5,690) (122,130) - - - - - (616,680) City-Owned Rental Property- - - - - - - - - Police Department(3,059,585) (67,730) (185,237) - (24,000) - - - (3,336,552) Support Services(221,064) (1,185) (8,873) - - - - - (231,122) Fire Department(2,275,113) (87,266) (113,281) - (5,275) - - - (2,480,935) Emergency Operations Center (EOC)- (6,000) (2,967) - - - - - (8,967) Community Development(817,023) (9,800) (126,647) - (100,000) - - - (1,053,470) Public Works(525,040) (8,131) (93,178) - - - - - (626,349) Consolidated Maintenance:Vehicles, Parks, Facilities(681,030) (94,700) (200,431) - - - - (976,161) Streets, Street Trees, Storm Drains/Creeks (627,368) (91,390) (145,386) - - - - - (864,144) Street Lighting(500) (500) (105,000) - - - - - (106,000) Curbside Recycling- - - - - - - - - Recreation Services - Administration(277,532) (4,996) (47,175) - - - - - (329,703) Recreation Services - Sports(271,372) (66,185) (74,299) - - - - - (411,856) Recreation Services - Youth Services(310,047) (15,400) (19,165) - - - - - (344,612) Vacancy rate- - - - - - - - - Transfers out:- Information Technology ISF- - - - - - - (262,394) (262,394) Economic Development- - - - - - - (134,928) (134,928) Vehicle Replacement- - - - - - - (75,000) (75,000) Compensable Leave Fund(50,000) (50,000) Capital Replacement- - - - - - - - - Projects Reserve- - - - - - - - - Fire Equipment Replacement- - - - - - - - - General Fund expenditure estimates$ (10,269,135) $ (470,919) $ (2,205,627) $ - $ (160,775) - $ - $ (522,322) $ (13,628,778)General Fund revenue estimates13,637,882 Surplus (Shortage)$ 9,104 2017/18 Adopted Budget Page 53 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (70,664) $ (68,371) $ (73,191) $ (73,144) $ (76,742) Supplies (178) (1,318) (381) (100) (100) Services (47,643) (63,859) (41,830) (46,233) (46,233) Contingency --- - Capital outlay --- - One-time bequests (88,000) (9,186) (6,924) (33,000) (11,500) Equipment replacement --- - - Total expenditures (206,485) (142,734) (122,326) (152,477) (134,575) Total revenues 1,581 1,421 378 - - Revenues over(under) expenditures $ (204,904) $ (141,313) $ (121,948) $ (152,477) $ (134,575) NOTES: With the adoption of the FY 16/17 budget, Council granted the following bequests: SLO County Housing Trust Fund $ 1,000 Community Resource Office 1,000 SCORE 500 Senior Nutrition 5,000 Open Opportunity 500 $8,000 With the proposed FY 17/18 budget, the following bequests have been included (Economic Vitality Corportation $5K request no inc SLO County Housing Trust Fund*$- HomeShare*- Community Resource Office 1,000 SCORE 500 Senior Nutrition 5,000 Economic Vitality Corp 5,000 $11,500 *$5,000 (SLO) and $1,000 (HomeShare) from Housing Trust Fund Utilized for this bequest. Note: Council is also waiving fees to Estero Bay Alliance for Care (EBAC) for use of Vet's Hall for serving meals on Monday nights. 2017/18 ADOPTED BUDGET CITY OF MORRO BAY CITY COUNCIL 2017/18 Adopted Budget Page 54 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (491,474) $ (374,389) $ (308,378) $ (204,493) $ (216,140) Supplies (4,448) (6,592) (14,583) (5,450) (5,287) Services (100,557) (217,171) (133,685) (42,909) (39,014) Capital outlay - - - - - Other - - (30,000) (25,000) (20,000) Equipment replacement - - - - - Total expenditures (596,479) (598,152) (486,646) (277,852) (280,441) Total revenues - 227,460 - - Revenues over(under) expenditures $ (596,479) $ (598,152) $ (259,186) $ (277,852) $ (280,441) NOTES: With the FY 13/14 budget, the LAFCO ($12,661) and League of California Cities ($5,607) expenditure were removed from the City Manager's budget, and placed in the "services" category in the City Council's budget. In FY 13/14, the City Manager was separated from employment, and payout cost is reflected in the increased personnel services category. In FY 16/17, the City Clerk costs were removed from this budget Other - represents amount designated as the "City Manager Opportunity Fund" to be used for quick response buisness expenditures. FY 2016/17 Transaction Detail (as of 6/22/17):Actual Roger Brooks Community Seminar 11,961 Central Coast Aquarium - Table Sponsor 500 Amgen Tour Host Expenses 1,996 Total 14,457 CITY MANAGER 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 55 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Services: PARS management fees $ (6,922) $ (7,456) $ (7,231) $ (7,500) $ (7,500) Contract City Attorney, G/F portion (25,070) (121,697) (150,000) (150,000) AGP Video (60,000) (60,000) Digital Map GIS service (10,000) (10,000) DocuTeam document storage (9,500) (9,500) Regional dispatch - Fire (123,899) (123,899) Regional dispatch - Police (252,076) (252,076) Ricoh copier leases (35,000) (35,000) Visitors Center (50,000) (50,000) Animal services (26,066) (38,858) (45,031) (70,130) (70,130) Total expenditures $ (58,058) $ (168,011) $ (52,262) $ (768,105) $ (768,105) NOTES: With the FY 13/14 animal services agreement, the County again revisited the methodology for calculating fees, lowering the City's contribution; this is a three year contract that is reevaluated annually. In FY 16/17, this budget section was expanded to include services that benefit all General Fund departments. CONTRACT SERVICES 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 56 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $$$$$ Supplies (69) (350) (350) Services (9,104) (10,241) (10,000) (10,000) Capital outlay - Other - Equipment replacement - Total expenditures - (9,104) (10,310) (10,350) (10,350) Total revenues - - - Revenues over(under) expenditures $ - $ (9,104) $ (10,310) $ (10,350) $ (10,350) NOTES: In FY 16/17, the City Clerk's portion of the budget was removed from the City Manager's budget. This budget is a combined City Clerk, Legal, and Elections. The City Attorney budget page has been removed, and costs for the contract City Attorney are presented in the Contract Services division. In FY 17/18 Elections has been removed from City Clerk in prior years and stated separately going forward. ELECTIONS 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 57 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (283,630) $ (24,029) $ (49,914) $ (165,665) $ (194,463) Supplies (31,746) (4,243) (1,810) (4,250) (4,123) Services (49,341) (47,340) (16,701) (21,960) (21,572) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (364,717) (75,612) (68,425) (191,875) (220,158) Total revenues 458 14,262 - - - Revenues over(under) expenditures $ (364,259) $ (61,350) $ (68,425) $ (191,875) $ (220,158) NOTES: In FY 16/17, the City Clerk's portion of the budget was removed from the City Manager's budget. This budget is a combined City Clerk, Legal, and Elections. The City Attorney budget page has been removed, and costs for the contract City Attorney are presented in the Contract Services division. FY 17/18 Personnel Services represents City Clerk at 80% and Legal Assistant at 75%. CITY CLERK/LEGAL 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 58 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (84,874) $ (82,585) $ (88,287) $ (119,177) $ (127,950) Supplies (1,678) (2,875) (2,330) (1,650) (1,601) Services (35,714) (26,429) (70,414) (106,330) (59,441) Capital outlay - - - - - Other - recruitment (17,371) - - Equipment replacement - - - - - Total expenditures (139,637) (111,889) (161,031) (227,157) (188,992) Total revenues - - - - - Revenues over(under) expenditures $ (139,637) $ (111,889) $ (161,031) $ (227,157) $ (188,992) NOTES: For the FY 14/15 fiscal year, the contract for negotiations services was canceled; negotiations were conducted by in house staff. For the year 15/16 fiscal year, services incresed due to external legal fees in contract negotiations and recruitment costs. For the year 16/17 amended budget included increased costs in services for Police Chief recruitment. HUMAN RESOURCES 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 59 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ - $ (24,603) $ (162,839) $ (86,272) $ (99,306) Supplies - - (424) (500) (485) Services - (10,000) (88,536) (20,224) (17,493) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures - (34,603) (251,799) (106,996) (117,284) Total revenues - - 75,000 - - Revenues over(under) expenditures $ - $ (34,603) $ (176,799) $ (106,996) $ (117,284) NOTES: Position created and filled June 2015. DEPUTY CITY MANAGER 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 60 - 2016/17 FY2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (362,304) $ (373,349) $ (516,428) $ (535,489) $ (488,860) Supplies (6,520) (6,199) (12,568) (15,675) (5,690) Services (188,888) (138,804) (191,479) (184,630) (122,130) Capital outlay (10,000) - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (567,712) (518,352) (720,475) (735,794) (616,680) Total revenues 8,558,420 9,413,625 10,056,182 10,545,825 10,950,522 Revenues over(under) expenditures $ 7,990,708 $ 8,895,273 $ 9,335,707 $ 9,810,031 $ 10,333,842 NOTES: In FY 12/13, the capital outlay is for remainder of the New World Systems mandatory software upgrade; the budgeted amount covers software plus training. In FY 13/14, the capital outlay is for a New World Systems mandatory software upgrade; the budgeted amount covers software plus training. In FY 17/18, the contract service for the New World Financial Systems was moved to the Information Technology Internal Service Fund ($64.5K) ACCOUNTING & TREASURY 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 61 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ - $ - $ - $ - $ - Supplies (1,282) - (4,500) (10,000) Services (28,607) (18,997) - - - Capital outlay - - - - - Other - recruitment - - - - - Equipment replacement - - - - - Total expenditures (29,889) (18,997) (4,500) (10,000) - Total revenues 21,750 27,250 300,400 381,301 Revenues over(under) expenditures $ (8,139) $ 8,253 $ 295,900 $ 371,301 $ - For FY2017/18, this income is being accounted for in the Finance Department budget. CITY-OWNED RENTAL PROPERTY 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 62 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (2,463,834) $ (2,577,508) $ (2,663,841) $ (2,869,016) $ (3,059,585) Supplies (99,955) (89,547) (91,930) (75,000) (67,730) Services (195,958) (189,212) (260,734) (191,970) (185,237) Capital outlay - - - - Other (16,936) (24,000) (24,982) - (24,000) Equipment replacement - - - - - Total expenditures (2,776,683) (2,880,267) (3,041,487) (3,135,986) (3,336,552) Total revenues 69,266 80,410 119,441 53,680 84,427 Revenues over(under) expenditures $ (2,707,417) $ (2,799,857) $ (2,922,046) $ (3,082,306) $ (3,252,125) NOTES: In FY 13/14, the SRO was funded at 37% by the School District and 63% by the City. In FY 14/15, the SRO was funded at 50% by the School District and City. In FY 15/16, the SRO was funded at 50% by the School District and City. In FY 16/17, the SRO was funded at 50% by the School District and City. In FY 17/18, the SRO is no longer funded 50% by School District. In City budget for 100% for six months approx $77K. Other six months is in Measure Q. This is an annual allocation, that will be reviewed throughout FY2017/18, in anticipation of eliminating the position on or before June 30, 2018, hopefully through attrition. POLICE DEPARTMENT 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 63 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (401,098) $ (145,079) $ (199,563) $ (215,148) $ (221,064) Supplies (5,243) (3,290) (5,985) (1,000) (1,185) Services (12,063) (149,830) (247,343) (15,750) (8,873) Capital outlay - - - - - Other (6,745) (79,414) - - Equipment replacement - - - - - Total expenditures (425,149) (377,613) (452,891) (231,898) (231,122) Total revenues - - - - - Revenues over(under) expenditures $ (425,149) $ (377,613) $ (452,891) $ (231,898) $ (231,122) NOTES: In October 2014, Police and Fire dispatch services were consolidated with San Luis Obispo County (Sheriff/CalFire). This division was renamed to Support Services to reflect the change from City-wide Communications. The increase in the Services category is due to the SLO County Sheriff's contract for emergency dispatch services, which is offset by the reduction in personnel costs. For the FY 16/17 fiscal year budget, the dispatch contract has been moved to Contract Services. POLICE SUPPORT SERVICES DIVISION 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 64 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (1,809,493) $ (2,002,026) $ (2,105,687) $ (2,224,771) $ (2,275,113) Supplies (110,941) (109,853) (109,598) (101,129) (87,266) Services (97,476) (112,383) (236,650) (156,207) (113,281) Capital outlay (40,518) (3,161) - - Other (1,000) (1,000) (5,000) (5,250) (5,275) Equipment replacement - - - - - Total expenditures (2,059,428) (2,228,423) (2,456,935) (2,487,357) (2,480,935) Total revenues 257,199 225,846 423,352 304,891 218,523 Revenues over(under) expenditures $ (1,802,229) $ (2,002,577) $ (2,033,583) $ (2,182,466) $ (2,262,412) NOTES: In FY 14/15, an 11th firefighter position was added. In October 2014, Police and Fire dispatch services were consolidated with San Luis Obispo County (Sheriff/CalFire). The increase in services is primarily due to the CalFire emergency dispatch contract. For the FY 16/17 fiscal year budget, the dispatch contract has been moved to Contract Services. FIRE DEPARTMENT 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 65 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ - $ - $ - $ - $ - Supplies (6,091) (5,729) (86) (8,019) (6,000) Services (2,147) (4,168) (4,231) (3,500) (2,967) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (8,238) (9,897) (4,317) (11,519) (8,967) Total revenues - - - - - Revenues over(under) expenditures $ (8,238) $ (9,897) $ (4,317) $ (11,519) $ (8,967) NOTES: In FY 13/14, staff budgeted for a nuclear planning grant in the amount of $9,000. If the grant is awarded, staff will purchase 2 audio/video flat screens for the primary EOC, and supplies/maps for the secondary EOC. In FY 14/15, staff budgeted for a nuclear planning grant in the amount of $5,000. If the grant is awarded, staff will purchase secondary EOC supplies. In FY 17/18, staff budgeted for a PG&E grant in the amount of $6,000. If the grant is awarded, staff will purchase cellular hotspots for wireless communications, batery replacement for EOC satellite, and lap top upgrades . EOC DISASTER PREPAREDNESS 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 66 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $- $ (196,861) $ (626,306) $ (766,175) $ (817,023) Supplies - (995) (18,482) (10,300) (9,800) Services - (81,369) (88,628) (112,698) (126,647) Capital outlay - - - - - Other - - (100,000) (100,000) (100,000) Equipment replacement - - - - - Total expenditures - (279,225) (833,416) (989,173) (1,053,470) Total revenues - 482,201 539,715 467,700 503,167 Revenues over(under) expenditures $- $ 202,976 $ (293,701) $ (521,473) $ (550,303) NOTES: This department was created in FY 15/16. With the FY 15/16 budget, $100,000 is designated for various studies. This amount will be budgeted annually. The FY 17/18 budget, includes $100,000 for various studies. This amount will be budgeted annually. COMMUNITY DEVELOPMENT 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 67 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (719,264) $ (683,263) $ (523,536) $ (368,330) $ (525,040) Supplies (22,376) (17,834) (13,027) (25,964) (8,131) Services (192,570) (159,752) (64,573) (122,357) (93,178) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (934,210) (860,849) (601,136) (516,651) (626,349) Total revenues 567,978 315 4,972 - 7,020 Revenues over(under) expenditures $ (366,232) $ (860,534) $ (596,164) $ (516,651) $ (619,329) PUBLIC WORKS DEPARTMENT 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 68 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (700,288) $ (723,149) $ (752,612) $ (690,620) $ (681,030) Supplies (97,446) (96,270) (70,071) (92,737) (94,700) Services (267,144) (181,601) (269,685) (213,163) (200,431) Capital outlay - (6,300) - - - Other - - - - - Equipment Replacement - - - - - Total expenditures (1,064,878) (1,007,320) (1,092,368) (996,520) (976,161) Total revenues 21,750 9,964 - - - Revenues over(under) expenditures $ (1,043,128) $ (997,356) $ (1,092,368) $ (996,520) $ (976,161) VEHICLE, PARKS AND FACILITIES MAINTENANCE 2017/18 ADOPTED BUDGET CITY OF MORRO BAY PUBLIC WORKS - CONSOLIDATED MAINTENANCE DIVISION 2017/18 Adopted Budget Page 69 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (119,515) $ (147,979) $ (135,864) $ (254,459) $ (324,609) Supplies (44,684) (60,324) (68,703) (62,000) (71,310) Services (81,725) (55,414) (86,614) (108,800) (64,416) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (245,924) (263,717) (291,181) (425,259) (460,335) Total revenues 3,538 4,657 3,256 - - Revenues over(under) expenditures $ (242,386) $ (259,060) $ (287,925) $ (425,259) $ (460,335) FY 17/18 Personnel Services increase reflects allocations of staff time from public works and consolidated maint anticipated to work on streets maintenance. STREETS MAINTENANCE DIVISION 2017/18 ADOPTED BUDGET CITY OF MORRO BAY PUBLIC WORKS - CONSOLIDATED MAINTENANCE 2017/18 Adopted Budget Page 70 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (37,605) $ (38,841) $ (33,340) $ (97,447) $ (128,294) Supplies (1,522) (1,008) (2,829) (5,500) (6,000) Services (35,382) (25,282) (72,287) (70,200) (46,000) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (74,509) (65,131) (108,456) (173,147) (180,294) Total revenues - - - - - Revenues over(under) expenditures $ (74,509) $ (65,131) $ (108,456) $ (173,147) $ (180,294) FY 16/17 Personnel Services and Services increase is allocation of staff time from public works and consolidated maintenance charged removing trees damaged by winter storms. FY 17/18 Personnel services increase reflects allocation of staff time from public works and consolidated maintenance. STREET TREES MAINTENANCE DIVISION 2017/18 ADOPTED BUDGET CITY OF MORRO BAY PUBLIC WORKS - CONSOLIDATED MAINTENANCE 2017/18 Adopted Budget Page 71 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ - $ (485) $ (70) $ (1,200) $ (500) Supplies (7,971) (103) (22) - (500) Services (75,384) (100,475) (104,149) (106,000) (105,000) Total expenditures $ (83,355) $ (101,063) $ (104,241) $ (107,200) $ (106,000) STREET LIGHTING 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 72 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (78,329) $ (76,551) $ (61,435) $ (124,161) $ (174,465) Supplies (1,552) (9,902) (17,408) (4,000) (14,080) Services (20,380) (39,330) (31,132) (36,700) (34,970) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (100,261) (125,783) (109,975) (164,861) (223,515) Total revenues - - - - - Revenues over(under) expenditures $ (100,261) $ (125,783) $ (109,975) $ (164,861) $ (223,515) STORM DRAINS/CREEK CLEARING MAINTENANCE DIVISION 2017/18 ADOPTED BUDGET CITY OF MORRO BAY PUBLIC WORKS - CONSOLIDATED MAINTENANCE 2017/18 Adopted Budget Page 73 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (22,940) $ (22,940) $ (23,832) $ (24,888) $- Supplies - - - - - Total expenditures (22,940) (22,940) (23,832) (24,888) - Total revenues 22,983 23,622 24,448 24,888 25,872 Revenues over(under) expenditures $ 43 $ 682 $ 616 $ - $ 25,872 For FY2017/18, personnel services working on Curbside Recycling activities are accounted for in other Public Works Division Budgets CURBSIDE RECYCLING 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 74 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (269,576) $ (329,729) $ (138,126) $ (400,068) $ (277,532) Supplies (6,263) (6,984) (4,199) (5,150) (4,996) Services (35,318) (44,592) (49,773) (60,160) (47,175) Capital outlay - - - - - Other - - - (7,500) Equipment replacement - - - - - Total expenditures (311,157) (381,305) (192,098) (472,878) (329,703) Total revenues 148,445 73,749 186,378 97,000 129,400 Revenues over(under) expenditures $ (162,712) $ (307,556) $ (5,720) $ (375,878) $ (200,303) NOTES: In FY 12/13, the $6,000 reserve for the Community Center maintenance has not been allocated; costs associated with Community Center maintenance will be directed to the Facility Maintenance fund. FY 17/18 certain staff charged to administration were moved to Youth and Teen departments. RECREATION SERVICES - ADMINISTRATION 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 75 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (210,971) $ (224,668) $ (235,319) $ (149,300) $ (271,372) Supplies (64,492) (76,496) (65,167) (78,200) (66,185) Services (49,133) (17,192) (48,308) (23,648) (74,299) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (324,596) (318,356) (348,794) (251,148) (411,856) Total revenues 171,360 221,339 205,032 205,632 200,000 Revenues over(under) expenditures $ (153,236) $ (97,017) $ (143,762) $ (45,516) $ (211,856) FY 17/18 Proposed Budget increases Personnel services, for part-time help associated with pool opening in September 2017 for acquatic programs and lifeguards. Increases in Services is due to rentals of High School soccer fields, gyms, etc. RECREATION SERVICES - SPORTS 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 76 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Personnel services $ (323,683) $ (340,965) $ (336,035) $ (184,387) $ (310,047) Supplies (27,112) (29,174) (15,506) (28,500) (15,400) Services (22,512) (24,827) (21,782) (23,050) (19,165) Capital outlay - - - - - Other - - - - - Equipment replacement - - - - - Total expenditures (373,307) (394,966) (373,323) (235,937) (344,612) Total revenues 216,574 198,078 233,047 219,000 202,100 Revenues over(under) expenditures $ (156,733) $ (196,888) $ (140,276) $ (16,937) $ (142,512) FY 17.18 Personnel Services increase is due to move of labor expense from Rec Administration, see reductions there. RECREATION SERVICES - YOUTH AND TEEN PROGRAMS 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 77 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget TRANSFERS OUT: General - Facility Maintenance $ (1,255,000) $- $- $- - General - Emergency Reserve (38,195) - - - - General - Vehicle Replacement - - (75,000) (75,000) (75,000) General - Capital Replacement - - (75,000) (100,000) - General - Projects Accumulation - - (200,000) (125,000) - General - Capital Improvement (872,894) (191,889) - - - Special Revenue Funds (320,663) (41,054) (369,489) (436,357) (447,322) Total Transfers Out $ (2,486,752) $ (232,943) $ (719,489) $ (736,357) (522,322) TRANSFERS IN: Emergency Reserve Fund $- $- $- $- 20,585 Special Revenues Funds: Measure Q - Fire overtime 123,340 99,608 92,867 96,122 116,444 County TMD - - 5,743 6,619 6,950 TBID - - 17,508 19,292 19,564 State Gas Tax - streets 345,434 346,088 230,562 237,562 305,292 Traffic Safety - traffic signals 19,012 18,771 20,000 13,000 13,000 Affordable In-Lieu Housing 63,000 10,410 - - - Capital Improvement fund 845,152 301,187 - - - Enterprise Funds: Cost Allocation Plan: Transit 79,775 79,775 79,775 79,775 79,775 Water 276,341 279,104 281,058 286,679 292,327 Sewer 164,701 166,348 167,512 170,862 174,228 Harbor 276,986 281,986 276,986 276,986 276,986 Other: Harbor - AGP Video, RR cleaning 5,000 - 5,000 11,300 11,700 Risk Management Accum Fund 252,620 125,900 - - - Total Transfers In $ 2,451,361 $ 1,709,177 $ 1,177,011 $ 1,198,197 1,316,851 NOTES: In FY 13/14, the transfer out of $38,195 was to fully fund the G/F Emergency Reserve. The transfer in from Risk Management is f the $100,000 Dynegy loss, funding TBID's portion of the former CPC funds, backfilling the G/F Emergency Reserve and Council bequests. In FY 15/16, transfers out to Special Revenue Funds are $50,000 to the Visitors Center, and $325,489 to the Information Services Internal Service Fund. In FY 17/18, transfers out ot Special Revenue Funds are $50,000 to the Unfunded Compensable Leaves Fund, $134,928 to TBID, and $262,394 to the Information Services Internal Service Fund TRANSFERS 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 78 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET INFORMATION TECHNOLOGY INTERNAL SERVICE FUND This Fund is established with the adoption of the 2015/16 budget. Its purpose is to account for the expenditures on technology, as well as the accumulation of funds for purchasing technology, such as servers and personal computers. 2017/18 Adopted Budget Page 79 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ - $ - $ 143,126 112,363 Revenues from: General Fund budget 142,923 197,473 181,859 286,107 262,394 Contributions from other G/F depts - - 87,630 40,250 General Fund contribution - - 50,000 50,000 Transfers in from: Water 3,500 2,000 18,384 Sewer 4,000 2,000 18,384 Harbor 2,000 2,000 23,398 Wastewater Treatment - - 2,000 2,000 26,741 TBID 3,343 Strategic investment spending - - 100,000 - - Total revenues 142,923 197,473 430,989 384,357 352,644 Expenses for: Personnel (124,769) (137,670) (132,920) (207,033) (224,052) Supplies (1,824) (5,729) - (91,000) (35,000) Services (16,330) (54,074) (118,443) (158,087) (204,903) Equipment purchases: City Council - - - - - Administration - - - - - Administrative Services - - - - - IT - - (20,000) - - Police - - (5,000) - - Fire - - - - - Community Development - - (3,700) (20,000) Public Works - - (4,050) (7,000) Water - - - - - Sewer - - - - - Wastewater Treatment - - - - - Recreation - - (3,750) - - Harbor - - - - - Total expenses (142,923) (197,473) (287,863) (483,120) (463,955) Revenues over(under) expenses - - 143,126 (98,763) (111,311) Ending cash balance $ - $ - $ 143,126 $ 44,363 1,052 NOTES: This is a new fund, established in 2015; recommended by Management Partners' organizational review. INFORMATION TECHNLOGY INTERNAL SERVICE FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 80 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET HARBOR FUNDS HARBOR OPERATIONS: This Fund was established to account for all revenues and expenses connected with the operation of the Morro Bay Harbor, and in accordance with the Tidelands granting statutes. The principle source of revenue for this Fund is leases on the Embarcadero. The Harbor Operating Fund is established as a self-supporting enterprise fund. Also included here are fund spreadsheets for the Harbor Equipment Replacement, a savings fund for equipment, vehicle, watercraft and vessel replacements, and Harbor Accumulation, a savings fund for capital projects and operational needs. 2017/18 Adopted Budget Page 81 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ - $ 76,839 $ 246,153 $ 246,153 Revenues from: State/Federal grants 51,000 - - 293,000 343,000 Charges for services: Lease sites, including Dynegy 2,002,215 1,875,847 1,949,963 1,957,126 1,999,540 Launch ramp 25,076 30,962 29,250 27,540 28,000 Other 88,382 63,339 31,020 13,000 14,118 Subtotal 2,166,673 1,970,148 2,010,233 2,290,666 2,384,658 Transfers in from: Capital improvement - - - - - Accumulation fund 35,298 92,660 - - Subtotal 35,298 - 92,660 - - Total revenues and transfers in 2,201,971 1,970,148 2,102,893 2,290,666 2,384,658 Expenses for: Personnel (903,568) (931,221) (977,764) (1,100,973) (1,137,603) Supplies (89,280) (90,358) (86,023) (78,900) (75,443) Services (310,977) (355,238) (412,168) (359,289) (365,014) Other (no depreciation) (111,669) (50,666) (93,636) (293,000) (344,000) Launch ramp (2,681) (2,181) (2,295) (3,800) (4,031) Debt service (134,859) (40,027) (35,760) (134,859) (134,859) Subtotal (1,553,034) (1,469,691) (1,607,646) (1,970,821) (2,060,950) Transfers out to: General fund for cost allocation (276,986) (276,986) (276,986) (282,103) (276,986) General fund for AGP services (5,000) (5,000) (5,000) (5,000) (5,000) IT replacement fund - - (2,000) (2,000) (23,398) General fund for cost allocation - - - (6,300) (6,700) Capital improvement fund - - - - - Accumulation fund - equip repl (250,000) - (16,250) - - Accumulation fund - launch ramp (21,640) (27,924) - - - Accumulation fund - operations (95,311) (113,708) (25,697) (24,442) (11,624) Subtotal (648,937) (423,618) (325,933) (319,845) (323,708) Total expenses and transfers out (2,201,971) (1,893,309) (1,933,579) (2,290,666) (2,384,658) Revenues over(under) expenses and transfers out - 76,839 169,314 - - Ending cash balance $- $ 76,839 $ 246,153 $ 246,153 $ 246,153 NOTES: Resolution No. 48-08, adopted on August 11, 2008, authorizes the annual transfer of excess cash to the accumulation fund. With the FY 14/15 budget, lease site revenues do not include funds previously paid by Dynegy. 2017/18 ADOPTED BUDGET CITY OF MORRO BAY HARBOR OPERATING FUND 2017/18 Adopted Budget Page 82 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 79,843 $ 54,312 $ 54,743 $ 55,230 $ 55,230 Revenues from: Interest income 423 431 487 - - Transfer in from Operating Fund 250,000 Transfer in from Accumulation Fund 30,000 - - - - Total revenues 280,423 431 487 - - Expenses: Equipment/Vehicles (305,954)- - - - Revenues over (under) expenses (25,531) 431 487 - - Ending cash balance $ 54,312 $ 54,743 $ 55,230 $ 55,230 $ 55,230 NOTES: The 2012/13 requested allocation is for $200k toward the purchase of a Patrol Boat; the balance is expected to be funded with grants (total cost between $250 - $300k). With the 2013/14 mid-year budget, $30,000 was authorized for the purchase of a truck. With 2016/17, new proposed project to start setting aside capital replacement funding for Patrol Vessel #68 replacement in ~3 years. Preliminary cost estimate $275,000; state and local grants in the amount of ~$100k to be applied for. HARBOR EQUIPMENT REPLACEMENT FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 83 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 1,254,690 $ 900,113 $ 458,667 $ 444,906 $ 368,772 Revenues from: Interest income 7,334 6,041 3,922 - - Transfers in from: Launch ramp 21,639 27,924 25,697 - - Operating/Capital fund 95,311 113,708 107,052 24,442 11,624 Subtotal 116,950 141,632 132,749 24,442 11,624 Total revenues and transfers in 124,284 147,673 136,671 24,442 11,624 Capital improvements (448,861) (457,199) (57,772) 1 (100,576) Transfers out to: Operating fund - (131,920) (92,660) - - Equipment replacement fund (30,000) - - - - Subtotal (30,000) (131,920) (92,660) - - Total capital and transfers out (478,861) (589,119) (150,432) (100,576) - Revenues and transfers over(under) capital improvements and transfers out (354,577) (441,446) (13,761) (76,134) 11,624 Ending cash balance $ 900,113 $ 458,667 $ 444,906 $ 368,772 $ 380,396 1 Represents anticipated spending throug June 30 2017. The majority of appropriations for Capital Projects will go unexpended for FY 2016/17 HARBOR ACCUMULATION FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 84 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET WATER FUNDS WATER OPERATIONS: This Fund was established to account for all income and expenses having to do with the City's water utility operation. Its primary revenue source is water sales to residents and businesses. The Water Revenue Fund is established as a self-supporting enterprise fund. The City participates in the State Water Project through a 1992 agreement with the San Luis Obispo County Flood Control District and Water Conservation District. The agreement established the Central Coast Water Authority, to act as the treatment and distribution facility and bonding agent for the capital costs associated with the facility and local pipeline. Conservation-based water rates were set in 1996, and since that time, water rates have been reviewed by the City Council, but not adjusted. For several years, the City failed to meet its debt coverage ratio (although all payments were made on time). The biggest issues were the drought and reduced water consumption, due to water conservation combined with the static water rates. These two factors, along with the need to periodically use the City’s desalinization facility during times of decreased State Water production, exacerbated the inability to meet the required coverage ratio. On March 27, 2014, the City of Morro Bay issued a Request for Proposals for Consulting Services, Water and Sewer Rate Study Services, and on May 23rd, Bartle Wells was selected to perform these studies. The City established the following schedule to present, discuss and implement the new rates: 1. Public Works Advisory Board preliminary workshop, January 29, 2015 2. City Council Rate Study Session, February 24, 2015 3. City Council meeting to further discuss and potentially adopt the rate schedule(s), March 24, 2015 4. City Council Prop 218 Public Hearing, May 26, 2015 5. New rates implementation date: July 1, 2015 On May 26, 2015, the City Council adopted Resolution No. 30-15, establishing a new water rate schedule that was implemented with the July water usage (September 1 billing date). Our consultant, Bartle Wells, estimated the 2015/16 coverage ratio would be 1.26%. The City’s new water rate structure was developed to fund the City’s ongoing operations, a capital improvement program, and provide for the required debt coverage ratio. Also included in the Proposition 218 rate adoption process were emergency rates that Council may impose should water use be severely restricted and water sales are lower than anticipated, and additional add-on rates that address the operation of its desalinization facility for water production, during long-term State Water Project shutdowns. Also included here are fund spreadsheets for the Water Equipment Replacement, a savings fund for equipment and vehicle replacements, Water Accumulation, a savings fund for capital projects and operational needs, and the Utility Discount/Rebate Program for our citizens. 2017/18 Adopted Budget Page 85 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $- $- $- $- Revenues from: Water sales 3,391,983 3,127,845 4,169,948 5,019,000 5,366,000 Service fees 107,630 119,131 143,999 117,800 111,200 Other revenues 1,786 8,430 1,684 1,000 2,500 Subtotal 3,501,399 3,255,406 4,315,631 5,137,800 5,479,700 Transfers in from: Water Capital Projects Fund 194,751 Accumulation fund 1,728,316 5,488 22,681 - - Total revenues and transfers in 5,229,715 3,455,645 4,338,312 5,137,800 5,479,700 Expenses for: Personnel (751,605) (727,066) (701,338) (843,426) (807,177) Supplies (193,330) (169,262) (131,727) (193,615) (190,242) Services (3,499,248) (2,006,261) (2,481,500) (3,246,354) (3,380,522) Other (no depreciation)(509,191) (197,883) (19,257) (7,500) (14,280) Subtotal (4,953,374) (3,100,472) (3,333,822) (4,290,895) (4,392,221) Transfers out to: General fund for cost allocation (276,341) (279,104) (281,058) (286,679) (292,327) General fund for Capital Projects (73,960) IT replacement fund -- (3,500) - (18,384) Trust & Agency Fund (5,365) Utility discount program - (76,069) (67,800) (75,200) Accumulation fund - - (645,972) (487,061) (701,568) Subtotal (276,341) (355,173) (1,004,490) (846,905) (1,087,479) Total expenses and transfers out (5,229,715) (3,455,645) (4,338,312) (5,137,800) (5,479,700) Revenues over(under) expenses and transfers out ---- - Ending cash balance $- $- $- $- $- NOTES: Resolution No. 48-08, adopted on August 11, 2008, authorizes the annual transfer of excess cash to the accumulation fund. Resolution No. 30-15, adopted on May 26, 2015, established new water and sewer rates. WATER REVENUE FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY For reference, the FY2015/16 Bond Coverage Ratio of 1.16% does not meet the 1.25% requirment. The City expects to meet this requirment prior to the close of FY 2016/16. See bond coverage ratio letter towrds end of this budget document. 2017/18 Adopted Budget Page 86 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 258,845 $ 260,481 $ 262,550 $ 264,885 $ 264,885 Revenues from: Interest income 1,636 2,069 2,335 - - Transfers in - - - - - Total revenues 1,636 2,069 2,335 - - Expenses: Equipment/Vehicles - - - - Revenues over (under) expenses 1,636 2,069 2,335 - - Ending cash balance $ 260,481 $ 262,550 $ 264,885 $ 264,885 $ 264,885 WATER EQUIPMENT REPLACEMENT FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 87 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 4,146,391 $ 2,366,571 $ 2,023,701 $ 2,775,364 $ 3,264,925 Revenues from: Impact fees 28,075 69,551 99,376 40,000 63,200 WEU In-Lieu fees - 23,200 23,200 - Interest income 20,990 - 21,364 7,500 7,500 Other income 640 - - - - Subtotal 49,705 69,551 143,940 70,700 70,700 Transfers in - - 645,972 487,061 701,568 Total revenues and transfers in 49,705 69,551 789,912 557,761 772,268 Expenses (Rebates/Refunds)(26,100) - - Capital Expenditures (101,209) (167,881) (38,249) 1 (45,000) (743,075) Transfer out to Utility Discount/Rebate (23,200) (75,200) Transfer out to operating fund (1,728,316) (218,440) - - Total expenses (1,829,525) (412,421) (38,249) (68,200) (818,275) Revenues over(under) expenditures (1,779,820) (342,870) 751,663 489,561 (46,007) Ending cash balance $ 2,366,571 $ 2,023,701 $ 2,775,364 $ 3,264,925 $ 3,218,918 1 Represents anticipated spending throug June 30 2017. The majority of appropriations for Capital Projects will go unexpended for FY 2016/17 WATER ACCUMULATION FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 88 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET UTILITY DISCOUNT/REBATE PROGRAM This program began with the passage of Resolution No. 54-15 on July 14, 2015. Discretionary funds are placed into this account to allow a discount on City Utility bills for residents who are participants in the PG&E Care Program. The money used for funding is Water and Sewer penalties, Additioanlly, the Utility Rebate Program is operated out of this fund. Homeowners, who purchase and install water conserving appliances (washers, toilets), may apply for a rebate, based on program requirements. 2017/18 Adopted Budget Page 89 2016/17 2017/18 2014/15 2015/16 Amended Adopted Actual Actual Budget Budget Beginning cash balance $- $ 127,678 $ 135,915 $ 137,883 Transfers in: Water penalties 68,059 68,059 60,000 65,000 Water service charges 8,010 8,010 7,800 10,200 WEU In-Lieu fees from Water Accum 23,200 23,200 23,200 - Sewer penalties 28,409 25,000 27,000 48,000 Total revenues 127,678 124,269 118,000 123,200 Expenditures: Discounts/rebates paid - (116,032) (116,032) (123,200) Revenues over(under) expenditures and transfers out 127,678 8,237 1,968 - Ending cash balance $ 127,678 $ 135,915 $ 137,883 $ 137,883 UTILITY DISCOUNT/REBATE PROGRAM 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 90 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET SEWER FUNDS SEWER OPERATIONS: This Fund is used to account for the revenues and expenses associated with the wastewater collection operation. Its primary revenue source is sewer usage fees charged to residents and businesses. Operational funds are transferred to the Morro Bay/Cayucos Sanitary District Wastewater Treatment Fund. The Sewer Revenue Fund is established as a self-supporting enterprise fund. Since 2007, rates have been raised annually in preparation for the major upgrade to the existing 1950’s wastewater treatment facility. In December 2012, the City Council ceased efforts to upgrade the Facility at its current waterfront location; efforts to secure a new location began soon thereafter and continue. A new sewer rate structure was implemented with Resolution No. 30-15; see the discussion under Water Revenue Fund. Also included here are fund spreadsheets for the Sewer Equipment Replacement, a savings fund for equipment and vehicle replacements, and Sewer Accumulation, a savings fund for capital projects and operational needs. 2017/18 Adopted Budget Page 91 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $- $- $- $- Revenues from: Sewer user fees 4,070,514 4,221,780 4,921,000 5,561,000 6,198,000 Intergovernmental - - - - - Rental income 18,704 23,370 20,000 20,000 20,000 Other revenues ( Penalties)33,330 34,675 25,000 27,000 48,000 Subtotal 4,122,548 4,279,825 4,966,000 5,608,000 6,266,000 Transfers in from: Accumulation fund - - - - - Other - - - - - Subtotal - - - - - Total revenues and transfers in 4,122,548 4,279,825 4,966,000 5,608,000 6,266,000 Expenses for: Personnel (535,091) (543,849) (653,618) (649,167) (591,989) Supplies (127,031) (116,221) (156,250) (223,750) (199,760) Services (236,783) (341,322) (424,984) (582,768) (487,693) Other (no depreciation)(71,690) (61,396) - - (14,075) MB/CSD Wastewater Treatment Plant (2,624,352) (2,700,186) - (1,796,417) (1,680,199) Subtotal (3,594,947) (3,762,974) (1,234,852) (3,252,102) (2,973,716) Transfers out to: General fund for cost allocation (164,701) (166,348) (167,512) (170,862) (174,228) Utility discount program - (28,409) (25,000) (27,000) (48,000) IT replacement fund - - (4,000) (5,164) (18,384) to Waste Water Treatment Fund (1,870,530) Accumulation fund (362,900) (322,094) (3,534,636) (2,152,872) (1,181,142) Subtotal (527,601) (516,851) (3,731,148) (2,355,898) (3,292,284) Total expenses and transfers out (4,122,548) (4,279,825) (4,966,000) (5,608,000) (6,266,000) Revenues over(under) expenses and transfers out - - - - - Ending cash balance $- $- $- $- $- NOTES: Resolution No. 48-08, adopted on August 11, 2008, authorizes the annual transfer of excess cash to the accumulation fund. In FY 14/15, the payment to WWTP includes 75% of the WWTP operating budget plus 100% of the City-only contracts related to the WRF. Resolution No. 30-15, adopted on May 26, 2015, established new water and sewer rates. SEWER REVENUE FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 92 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 124,710 $ 240,864 $ 358,234 $ 498,234 $ 675,605 Revenues from: Interest income 1,154 2,370 - - - Transfer in 115,000 115,000 140,000 177,371 177,371 Total revenues 116,154 117,370 140,000 177,371 177,371 Expenses: Equipment/Vehicles - - - (615,000) Revenues over (under) expenses 116,154 117,370 140,000 177,371 (437,629) Ending cash balance $ 240,864 $ 358,234 $ 498,234 $ 675,605 $ 237,976 NOTES: The FY 13/14 allocation is for $100,000 and $15,000 to be transferred in to save for the HydroVac and truck replacements. The FY 14/15 allocation is for $100,000 to save for the HydroVac; $15,000 to be added to the accumulation for the truck replacement, which will be purchased this fiscal year. The FY 15/16 allocation is for $100,000 to save for the HydroVac; $40,000 to be added to the accumulation for the truck replacement, that was not purchased in FY 14/15. The FY 16/17 allocation continues to save for the HydroVac, and other equipment. The FY 17/18 expenditure is for a truck replacements HydroVac $540,000 and Utility Truck $75,000. SEWER EQUIPMENT REPLACEMENT FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 93 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 3,714,093 $ 3,964,766 $ 4,209,495 $ 6,334,741 $ 8,330,242 Revenues from: Impact fees 54,256 82,103 50,000 60,000 41,115 Interest income 24,209 - - - - Subtotal 78,465 82,103 50,000 60,000 41,115 Transfers in from: Revenue fund 362,900 322,094 3,534,636 2,152,872 1,181,142 Subtotal 362,900 322,094 3,534,636 2,152,872 1,181,142 Total revenues and transfers in 441,365 404,197 3,584,636 2,212,872 1,222,257 Capital improvements - (44,468) (1,319,390) 1 (40,000) (4,261,204) Transfer out to: Sewer Equipment Replacement Fund (115,000) (115,000) (140,000) (177,371) (177,371) Sewer Revenue Fund (75,692) - - - - Subtotal (190,692) (115,000) (140,000) (177,371) (177,371) Total capital and transfers out (190,692) (159,468) (1,459,390) (217,371) (4,438,575) Revenues and transfers over(under) capital improvements and transfers out 250,673 244,729 2,125,246 1,995,501 (3,216,318) Ending cash balance $ 3,964,766 $ 4,209,495 $ 6,334,741 $ 8,330,242 $ 5,113,924 The FY 17/18 expenditure is $4,261,204 for the WWTP Relocation and Replacement project (WRF). 1 Represents anticipated spending throug June 30 2017. The majority of appropriations for Capital Projects will go unexpended for FY 2016/17 2017/18 ADOPTED BUDGET CITY OF MORRO BAY SEWER ACCUMULATION FUND 2017/18 Adopted Budget Page 94 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET DISTRICT TRANSACTION TAX FUND With the November 7, 2006 election, the citizens of Morro Bay voted in a ½ cent district sales tax, commonly known as “Measure Q.” This is a general tax, and has no sunset date. The ballot measure stated: "MEASURE Q-06 The Morro Bay Vital Public Services Restoration and Protection Measure. To preserve Morro Bay’s safety and character by funding essential services including upgrading firefighter/paramedic equipment, fire stations, police, street and pothole repairs, improving storm drains to protect the bay from pollution and other general city services, shall an ordinance be adopted increasing the City sales tax by one-half cent, subject to independent annual financial audits, and establishing an independent citizens' advisory committee to review annual expenditures?" Ordinance 519 was enacted on August 14, 2006, to establish Chapter 3.22, City of Morro Bay Transactions and Use Tax. The City Council divides the annual revenue estimate between the departments, based on the language in the Measure, campaign polls, and departmental requests. 2017/18 Adopted Budget Page 95 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 698,635 $ 316,031 $ 59,230 $ 10,099 10,099 Revenues from: 1/2 cent sales tax 920,713 946,448 923,360 1,019,199 1,024,129 Interest income 3,063 1,593 - - - Transfers in - 203,508 - - - Total revenues 923,776 1,151,549 923,360 1,019,199 1,024,129 Expenditures: Fire (51,646) - - - (5,200) Fire - Fire Station #53 D/S (41,483) (124,809) (90,806) (90,633) (91,512) Fire - Firefighter (112,707) (107,856) (93,340) (148,432) (143,836) Fire/EOC - - (25,773) (7,416) (15,000) Fire, Police, Harbor, Public Works (17,492) Streets (700,636) (916,119) - (587,196) (529,737) Streets-curb/gutter/potholes/sidewalks (22,841) (16,329) - - - Storm drains (18,772) (39,612) - - - Police (8,627) (52,738) (10,000) (27,000) (27,600) Police - SRO (74,208) (51,279) (60,000) (62,400) (77,309) Public safety (77,620) - - - - Transfers Out: General Fund (123,340) (99,608) (292,867) (96,122) (116,443) Capital projects (74,500) - - - - Total expenditures (1,306,380) (1,408,350) (572,786) (1,019,199) (1,024,129) Revenues over (under) expenditures (382,604) (256,801) 350,574 - - Reservations for: Fire - - - - - Firefighter - - - - - Streets - - (399,705) - - Storm drain - - - - - Police - - - - - Communications - - - - - Total reservations - - (399,705) - - Ending cash, available for distribution $ 316,031 $ 59,230 $ 10,099 $ 10,099 $ 10,099 NOTES: Resolution No. 46-12, adopted on September 11, 2012, formally dedicated Measure Q funds to the following purposes: 1) improve the Fire Department; 2) enhance public safety; 3) street maintenance; and 4) storm drain maintenance and prevention of toxic runoff into the bay. With the FY 13/14 mid-year budget review, $74,500 was allocated to the Morro Creek Bridge project. Additionally, the Fire Department carryover, related to the firefighter, is allowed to be carried over for one year only; carryover of $66,075 was added to FY 13/14 budget. With the FY 14/15 budget, $277,233 of carryover was added to the streets budget; all Storm Drain carryover was added to streets, and the Oversight Committee suggested that Storm Drain expenditures only be budgeted in the year they need to be spent. With the FY 15/16 budget, streets funding will be carried over to FY 2016/17. DISTRICT TRANSACTION TAX FUND (MEASURE Q) 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 96 Fire Fire Station #53 debt service + 10% reserve 91,512$ The United States Department of Agriculture (USDA) loaned the City of Morro Bay $1.5 million to complete construction of the headquarters fire station project. Completing the construction of the fire station has been a Council priority for several years. Additionally, council has expressed an intent to pay down the USDA debt with proceeds from the sale of the Cloisters property when sold. This request is for the 2016/17 debt service ($83,193) + the reserve requirement ($8,319). Police School Resource Officer (SRO)77,309$ The San Luis Coastal Unified School District is no longer funding the SRO program at Morro Bay High School (MBHS) at 50% of the officer's salary and benefits as they traditionally have. The SRO program provides essential public safety services at MBHS, as well as rapport-building between Morro Bay youth and our Police force. This request represents 50% of the cost for the SRO, with the remaining 50% paid by the Police Department's General Fund unit. Fire Salaries and benefits for Vacation Relief Firefighter 260,279$ Continues funding for vacation relief full-time firefighter Salary ($74,637), Benefits ($35,804), vacation relief overtime pay ($15,393), and overtime to maintain staffing of 3 full-time firefighters ($118,866), and funding the additional reserve part-time firefighter wage ($12,600) and benefit ($2,977) to maintain the council desired and strategic plan recommended 4 firefighters on duty each day. Public Works Pavement Management 529,737$ Accumulation from 2015/16 is $399k as of 5/3/16; this will add to the amount designated for 2016/17 for street work Police Standby pay 13,000$ Allocation request to increase Police readiness, 24/7, through the use of stand-by pay for Police personnel. Police Payment to other agencies 14,600$ Allocation request for the Bomb Team and the Sheriff's Special Operations Unit (narcotics/gang task force). Fire Fire Hose Replacement 4,000$ Replacement 2,000 feet of 2.5 inch 24 year old hose; structure and wildland fire hose repair and hose maintenance Fire Generator for Multiple Casuality Trailer 1,200$ Replacement of 3 kw generator on Morro Bay Fire Department's Multiple Caulity (MCI) Trailer. Morro Bay's MCI Trailer is designed to triage and treat up to 48 patients. Morro Bay's MCI Trailer is stationed at our Harbor Street Station and is a part of our local and county response plan. Fire, Police, Harbor, Public Works Black Hill Repeater $17,492.00 Repair, and replace operational power supplies at our Black Hill repeater site. Evaluate and relocate public safety antennas to operational effective locations for optimum transmission to the Los Osos repeater site. A professional comprehensive study of our future needs for our public safety repeater and antenna infrastructure. This study will address a regional approach for operational effectiveness and cost efficient partnerships with our local public safety neighbors. Emergency Operations Center (EOC) Comprehensive rewrite of our Morro Bay Emergency Management Plan 15,000$ A Comprehensive rewrite of our Morro Bay Emergency Management Plan will be our next step to our completion of our Local Hazard Mitigation Plan. Our Hazard Annex's will be updated to match current FEMA and State OES requirements to include: Earthquakes, Tsunamis, Mass Causalities, Hazardous Materials, Storm / Flood, Major Fires, Civil Disturbance / Terrorism, and Nuclear. With Morro Bay having some uniqueness, two additional Hazard Annex's will be develop to include Droughts and Recovery. Position checklists and an updated emergency resource guide will be developed. Our new plan will be submitted to County OES St te OES nd FEMA fo ompli n e 494,392$ Non-Streets Spending 1,024,129 Total Revenue Available (529,737)$ Available balance for streets CITY OF MORRO BAY RECURRING ALLOCATIONS 2017/18 REQUESTS Division Departmental FOR THE 2017/18 FISCAL YEAR SCHEDULE OF REQUESTED MEASURE Q EXPENDITURES 2017/18 Adopted Budget Page 97 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT On April 27, 2009, Ordinance No. 546 was enacted, establishing Chapter 3.60 of the Morro Bay Municipal Code, which is entitled Tourism Business Improvement District (MBTBID) Law. Lodging establishments self-assess an additional transient occupancy tax on rooms rented, which is paid to the City, then returned to the Tourism Bureau for promoting tourism in Morro Bay. For the first year, the MBTBID assessment rate was 3%; ensuing years were set at 2%, per the Ordinance. On September 13, 2010, Staff introduced Ordinance No. 562, which increased the MBTBID assessment rate back to 3%. The Ordinance was passed on September 27th, and became effective October 28, 2010. Annually in May, the MBTBID’s annual report and budget are presented to the City Council, and a public hearing is set, which allows affected businesses the opportunity to protest the MBBID assessment. A Resolution is brought forward to confirm the results of the public hearing, renew the activities of the MBTBID for the upcoming fiscal year, and approve the levy and collection of the 3% assessments from the hoteliers. In 2013, the MBTBID formed a 501c(6) corporation, Morro Bay Tourism Bureau, to carry out the marketing activities of the MBTBID, as well as manage the Visitors Center. As part of the Management Partners’ 2015 Organizational Study, the recommendation to develop a proposal for integrating Tourism Bureau activities with City operations was explored by staff. City staff held a public workshop on September 22, 2015, to discuss this with stakeholders, presented the concept to the MBTBID board at a special meeting on 12/10/15, and ultimately presented the results of the City’s outreach and recommendations to the City Council on January 12, 2016, with two management scenarios. The Council adopted Resolution No. 03-16, discontinuing the City’s contract with the Morro Bay Tourism Bureau, and merging operations and marketing (via Mental Marketing) efforts into the City, beginning June 2016. 2017/18 Adopted Budget Page 98 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 32,948 $ 49,272 $ 58,825 $ 237,245 $ 237,245 Revenues from: Assessments 643,161 741,435 774,355 864,606 907,863 Interest 468 675 - - - Visitors Center - City Contribution 102,168 100,000 - - - Promotion - City Contribution 58,425 39,996 - 60,000 134,928 Promotion - Council bequest 58,000 - - - - Other - 64,200 20,000 4,000 Subtotal 862,222 882,106 838,555 944,606 1,046,791 Expenditures: Tourism promotion (843,898) (870,553) (640,573) (925,314) (987,930) City administrative fee (2%) - - (17,562) (17,292) (19,564) AGP video (2,000) (2,000) (2,000) (2,000) - Transfers to Accumulation Fund (35,954) Transfers to Information Technology - - - - (3,343) Subtotal (845,898) (872,553) (660,135) (944,606) (1,046,791) Revenues over (under) expenditures 16,324 9,553 178,420 - - Ending cash balance $ 49,272 $ 58,825 $ 237,245 $ 237,245 $ 237,245 NOTES: Per Resolution No. 37-13, the City will address reducing the amount of General Fund support to the Morro Bay Tourism Bureau, and other outside funding requests with its 2014/15 budget. For the FY 14/15 fiscal year, City Council granted $140,000 to the Morro Bay Tourism Bureau as follows: Visitors Center 100,000$ Risk Management paid Events 40,000$ Risk Management paid Beginning with the FY 15/16 fiscal year, the City will begin collecting a 2% administrative fee. Additionally, the contribution to the Visitors Center was reduced to $50,000; staff will work on a new plan for delivering that service. Resolutions No. 03-16 redefined the tourism marketing relationship with the Morro Bay Tourism Bureau. Beginning June 1, 2016, marketing efforts and contract management will be performed by City staff. This budget includes a $60k General Fund contribution for FY 16/17. For the FY 17/18: Details of Tourism Promotion Expenditures:* $90K in Community Events Detail: Staff Salaries & Benefits 193,801 Harbor Fesitval 11,125 Supplies 3,200 Lighted Boat Parade 9,000 Consulting - Freelance Artist 9,000 Morro Bay Kite Festival 9,000 Consulting - Website Management 7,000 Surfboard Art Festival 7,500 Consulting - Search Engine Optimization 8,000 12 Days of Christmas 7,000 Consulting - Billboard Rental 2,500 Winter Bird Festival 6,000 Contracts - Strategic Planning,Consulting, Reporting 15,000 Central Coast Writer's Conference 5,000 Contracts - Account Management, Coordination 36,000 Morro Bay Car Show 4,500 Contracts - Creative Services 30,000 Soupabration 3,800 Contracts - Public Relations Plan, Outreach, Reporting 60,000 Annual Yard Sale 3,500 Contracts - Social Media Planning, Executiion, Reporting 24,000 Taste of the Grove 3,000 Advertising - Media Buys 175,000 MBHSWrestling 2,750 Advertising - Direct Ad Placements 25,000 MBHS Basketballl 1,525 Advertising - Direct Mail & Email Campaigns 45,000 MBHS Volleyball Invitational 1,525 Marketing consulting 39,000 Subtotal - TBID Adv Board Approved 75,225 Community Event Support *90,000 Undesignated for Future Requests in FY 14,775 Promotiom Media - Increase Shoulder Season 20,000 Sponsorships - SLO Jazzl, AvoMarg, All Out Events, etc.60,000 Promotion Media - Printing Activity Passports 4,500 Promotion Media - Printing Visitor's Guide 9,000 Host Visiting Journalists 25,000 Trade Shows 11,425 Co-op Advertising & Promotions 50,000 Jack Rabbit Room Booking Engine 17,000 Postage for Mailings ( Visitor's Guide)5,000 Utilities, Insurance 3,535 Memberships, Travel, Prof Development, etc.19,969 Total Tourism Promotion 987,930 Total Community Events 90,000 For FY17/18, General Fund Transfer in based on $60K + 20% above FY16/17 actuals per Resolution 03-16. Will adjust calculations for FY18/19 based on FY2016/17 Actuals MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 99 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ $ - $ - $ - $ - Revenues from: Interest income Subtotal - - - - - Transfers in from: Revenue fund 35,954 Subtotal - - - - 35,954 Total revenues and transfers in - - - - 35,954 Capital improvements - Transfer out to: Revenue Fund Subtotal - - - - - Total capital and transfers out - - - - - Revenues and transfers over(under) capital improvements and transfers out - - - - 35,954 Ending cash balance $ $ - $ - $ - $ 35,954 FY17/18 this is the first year fund created. CITY OF MORRO BAY 2017/18 ADOPTED BUDGET MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ACCUMULATION FUND 2017/18 Adopted Budget Page 100 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GOVERNMENTAL IMPACT FEES ACCUMULATION FUND This Fund was established in October 2007, when Council adopted Resolution No. 47-07, which implemented the Development Impact Fee Program. These fees are collected to ensure that new development pays the cost of infrastructure expansion required to meet the needs of that new development, effectively transferring the cost burden of growth from the existing rate and tax payers. The money collected can be used on capital projects for new facilities, vehicles, and rehabilitation and/or renovation of existing facilities, so long as the rehabilitation or renovation is needed to serve the new development that has paid the fee. 2017/18 Adopted Budget Page 101 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 551,465 $ 653,575 $ 318,207 $ 566,794 $ 612,794 Revenues from impact fees: Administration 24,221 50,402 89,410 65,000 43,511 Police 7,813 15,584 24,605 18,000 14,036 Fire 8,594 17,142 30,113 20,000 15,439 Streets 35,940 71,732 108,633 78,000 64,565 Storm drain maintenance 1,562 3,253 4,903 5,000 2,807 Parks 23,980 41,109 56,673 40,000 21,373 Total revenues 102,110 199,222 314,337 226,000 161,731 Expenditures for: Administration - - - (55,000) Police - - - - - Fire - - - - - Streets - - - (25,000) Storm drain maintenance - - - (100,000) (112,000) Parks - - - - - Transfers out - (534,590) (65,750) - - Total expenditures - (534,590) (65,750) (180,000) 1 (112,000) Revenues over(under) expenditures 102,110 (335,368) 248,587 46,000 49,731 Ending cash balance $ 653,575 $ 318,207 $ 566,794 $ 612,794 $ 662,525 NOTES: FY 16/17 reservations are: ADA Compliance $ 40,000 Community Beautification 15,000 Traffic Calming 25,000 Ironwood Storm Drain project 60,000 SR 1/Hwy41 40,000 $ 180,000 Note 1 : FY17/18 No planned expenditures are listed for Impact Fees at this point: Capital Budget contains a request: Laurel Ave Easement-Storm Drain Portion 112,000 GOVERNMENTAL IMPACT FEES ACCUMULATION FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 102 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET COUNTY TOURISM MARKETING DISTRICT On December 9, 2014, the City passed Resolution No. 85-14, consenting to the inclusion of the City within the proposed San Luis Obispo County Tourism Marketing District (SLOCTMD). On June 10, 2015, the San Luis Obispo County Board of Supervisors will be approving this county-wide marketing district. All visitor servicing establishments, offering transient overnight stays, will be required to collect 1% of the cost of each overnight stay, and remit the collections to the City. The monies are sent to the CTMD monthly, less a 2% administrative fee. 2017/18 Adopted Budget Page 103 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance - - - $ - $- Revenues from: Assessments - - 287,125 330,964 347,512 Expenditures for capital outlay: Tourism promotion - - (281,382) (324,345) (340,562) City administrative fee (2%)- - (5,743) (6,619) (6,950) Subtotal expenditures - - (287,125) (330,964) (347,512) Revenues over (under) expenditures - - - - - Ending cash balance - - - $ - $- NOTES: On 12/9/2014, Council adopted Resolution No. 82-14, consenting to the inclusion of the City within the San Luis Obispo County Tourism Marketing District. COUNTY TOURISM MARKETING DISTRICT 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 104 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GENERAL GOVERNMENT VEHICLE REPLACEMENT This Fund was established to accumulate money for the replacement of vehicles that are used by the General Fund’s departments. With the passage of the 2015/16 budget, replacement funds, in the amount of $75,000, are scheduled to be added annually. 2017/18 Adopted Budget Page 105 - 2016/17 2017/18 2014/15 2015/16 Amended Adopted Actual Actual Budget Budget Beginning cash balance $ 2,588 $ 30,107 $ 130,888 $ 135,888 Revenues from: Interest income 129 781 - - Other revenues - - 38,000 - Transfer in 115,000 100,000 75,000 75,000 Total revenues 115,129 100,781 113,000 75,000 Expenditures: Administration - - - - Police Department (45,000) - - (50,000) Fire Department (42,610) - - - Public Services Administration - - - - Consolidated Maintenance - - (108,000) Transfers out - - - - Total expenditures (87,610) - (108,000) (50,000) Revenues over (under) expenditures 27,519 100,781 5,000 25,000 Ending cash balance $ 30,107 $ 130,888 $ 135,888 $ 160,888 NOTES: 2012/13 allocation: Two marked Police cars, Fire command vehicle 2013/14 request: purchase a 4-door hybrid for Administration, paid for by Risk Management and the cash remaining in this Fund. 2014/15 requests will be paid by a cash transfer from Government Impact Fees: 1) Police = Ford Inceptor; 2) Fire = Ford F250 4x4; 3) Parks = pickup truck 2015/16 transfer in comes from the General Fund, and is the beginning of an annual savings plan. 2016/17 request from Consolidated Maintenance to replace two 3/4 ton trucks with utility boxes 2017/18 request from the Police Department to replace the Watch Commander vehicle that is past it's usefu life. GENERAL GOVERNMENT VEHICLE REPLACEMENT FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 106 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GENERAL FUND EMERGENCY RESERVE FUND With the adoption of the 2015/16 budget, Resolution No. 33-15 will be enacted, which rescinds all old Resolutions, related to the General Fund Emergency Reserve, either in part or entirety. Resolution No. 33-15 establishes the following: 1. The General Fund Emergency Reserve (“GFER”) Fund is named and established, and the General Fund Emergency Reserve Fund Policy is described herein. 2. The GFER Fund Policy sets the parameters for and use of this Fund as follows: a. The GFER target balance is set at 27.5%. b. Annually, the GFER balance is calculated by using the average of three years’ actual General Fund operating revenues (i.e., for the Fiscal Year 2015/16 calculation, the actual operating revenues for Fiscal Years 2013/14, 2012/13 and 2011/12 are added together, and divided by 3). c. Based on the existing balance in the Fund, as compared to the target calculated balance, amounts, greater than the 27.5% target balance, will be deemed available for spending, during the annual budget adoption process, at the City Council’s discretion. d. Any use of the GFER Fund must be approved by the City Council. Resolution No. 33-15 also contains the following assertions, based on the Management Partners’ Financial Forecast: 1. The Management Partner’s forecast predicts a moderate recession in 2017. 2. The City’s CalPERS actuarial assumptions contain increased contribution rates for Fire and Police Safety plans over the next five fiscal years ending in 2020/2021. 3. The continuing drought in California may affect revenues (i.e., TOT). 4. The schedule of year-end minimum reserve levels is set at: a. FY 2014/15 - $3.385m (33.4% of General Fund revenues calculation) b. FY 2015/16 - $3.583m (32.7% of General Fund revenues calculation) c. FY 2016/17 - $3.272m (30.2% of General Fund revenues calculation) d. FY 2017/18 - $2.685m (24.5% of General Fund revenues calculation) e. FY 2018/19 - $2.802m (24.7% of General Fund revenues calculation) f. FY 2019/20 - $2.797m (23.6% of General Fund revenues calculation) g. FY 2020/21 - $2.983m (24.6% of General Fund revenues calculation) h. FY 2021/22 - $3.097m (25.0% of General Fund revenues calculation) 5. Based on the above schedule, the City is authorized to present deficit spending budgets in FY 2016/17 and FY 2017/18. 6. If annual revenues are below forecast, expenditures must be adjusted to meet these targets. 7. These assumptions will be reviewed annually in May for re-adoption in June, based on the current fiscal environment. 2017/18 Adopted Budget Page 107 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 2,853,530 $ 2,909,885 $ 3,372,696 $ 3,589,623 3,691,729 Revenues from: Interest income 18,160 21,696 16,927 20,000 20,000 Dynegy agreement - 525,000 - - - Sale of property - - - - - Other - - - 347,106 - Subtotal 18,160 546,696 16,927 367,106 20,000 Transfers in 38,195 116,115 200,000 - - Total revenues 56,355 662,811 216,927 367,106 20,000 Transfers out: General Fund - - - - (20,585) District Transaction Tax (Meas Q)- (200,000) - - - General Fund Facility Maint Fund - - - - - Expenditures Cerrito Peak Property Purchase - - - (265,000) - Total expenditures/transfers out - (200,000) - (265,000) (20,585) Revenues over (under) expenditures 56,355 462,811 216,927 102,106 (585) Ending cash balance $ 2,909,885 $ 3,372,696 $ 3,589,623 3,691,729 3,691,144 2,684,000 $ 1,007,144 NOTES: Resolution No. 33-15, adopted on June 9, 2015, sets the parameters of this fund. At the July 10, 2012 City Council meeting, the Council approved the purchase of 5 Big Belly Solar-Powered Trash Receptacles ($32,000), and the purchase of iPads for Council Members and Department Heads ($9,200). For the 2013/14 budget, no additional funds have been budgeted for the Dynegy agreement. Dynegy has notified the City of its intent to close the power plant. The City will be entitled to one additional payment. At the June 12, 2013 budget workshop, the Council agreed to fund the deficiency in the Reserve ($38,195). Pavement Management plan. The loan was repaid in July 2015. With the 2015/16 budget, the reserve calculation has changed; the average of three years' trailing actual operating revenues is the basis for the new calculation. Specific year-end target cash balances were established with Resolution No. 33-15. In 2014/15, Council authorized a $200,000 temporary loan to the District Transaction Tax Fund to cover extra expenditures on the Target balance for FY 2017/18 per Reso No. 33-15 Available for budgetary purposes; Council approval required GENERAL FUND EMERGENCY RESERVE FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 108 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GENERAL FUND FACILITY MAINTENANCE FUND On January 20, 2011, escrow closed on the City-owned property at 781 Market Avenue, commonly referred to as the Brannigan’s Restaurant. The proceeds, less the escrow fees, amounted to $154,418, and were placed into this Fund. Resolution No. 10-11 formally dedicated this revenue stream for management of the City’s real property assets. Annual loan payments will be deposited into this Fund, to ensure that ongoing maintenance efforts continue. On December 31, 2015, the City purchased 781 Market Avenue. The current tenant, Distasio’s Restaurant on the Bay, remains in place, and lease payments will continue to be placed into this fund. The current tenant has expressed they will be vacating the property in October 2017, leaving four- months’ worth rent, along with existing Fund Balance, to pay for facility maintenance costs. Staff will begin exploring addition funding options to maintain facility maintenance activities. 2017/18 Adopted Budget Page 109 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 39,960 $ 81,501 $ 66,661 $ 47,655 $ 47,655 Revenues from: Interest income 61,899 66,432 882 - - Sale of property agreement - principal 37,491 - - - - Rental income - - 54,000 108,000 36,000 Total revenues 99,390 66,432 54,882 108,000 36,000 Expenditures (57,849) (81,272) (73,888) (108,000) (83,655) Revenues over (under) expenditures 41,541 (14,840) (19,006) - (47,655) Ending cash balance $ 81,501 $ 66,661 $ 47,655 $ 47,655 $ - NOTES: The funding source is from the sale of the Brannigan's restaurant and parking lot that resulted in two loans. All proceeds are deposited into this fund. In 2020, the balances of both loans are due in full, and at that time, $500,000 must be paid to the Parking In-Lieu Fund, which was used for the original purchase of the parking lot. On December 31, 2015, the City reaquired 781 Market Avenue and the parking lot. It is currently leased, and the revenue stream is $9,000 per month. CITY OF MORRO BAY 2017/18 ADOPTED BUDGET GENERAL FUND FACILITY MAINTENANCE FUND For FY17/18, the current lease tennant has indicated vacating the premise in October 2017; therefore, 4 months worth of lease revenue has been programmed for use, along with available Fund Balance 2017/18 Adopted Budget Page 110 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET CAPITAL REPLACEMENT FUND This Fund is established with the adoption of the 2015/16 budget. Its purpose is to account for the accumulation of funds for capital replacement, such as City Hall. 2017/18 Adopted Budget Page 111 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ - $ - $ 100,000 $ 200,000 Revenues from: Transfers in - - 100,000 100,000 - Total revenues - - 100,000 100,000 - Expenses for: Equipment purchases: City Council - - - - - Administration - - - - - Administrative Services - - - - - Police - - - - - Fire - - - - - Community Development - - - - - Public Works - - - - - Total expenses - - - - - Revenues over(under) expenses - - 100,000 100,000 - Ending cash balance $ - $ - $ 100,000 $ 200,000 $ 200,000 NOTES: This is a new fund, established in 2015; recommended by Management Partners' organizational review. For FY2017/18, Council directed staff to cut $100K in annual funding to reduce expenditures by $250k. CAPITAL REPLACEMENT ACCUMULATION FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 112 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET PROJECTS ACCUMULATION FUND This Fund is established with the adoption of the 2015/16 budget. Its purpose is to account for the accumulation of funds for capital projects. 2017/18 Adopted Budget Page 113 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ - $- $ 134,415 $ 259,415 Revenues from: Transfers in - - 200,000 125,000 - Total revenues - - 200,000 125,000 - Expenses for: Projects: City Council - - - - - Administration - - (3,347) - - Administrative Services - - - - - Police - - (12,238) - - Fire - - - - - Community Development - - - - - Public Works - - (50,000) - - Total expenses - - (65,585) - - Revenues over(under) expenses - - 134,415 125,000 - Ending cash balance $ - $ - $ 134,415 $ 259,415 $ 259,415 NOTES: This is a new fund, established in 2015; recommended by Management Partners' organizational review. For FY2017/18, Council directed staff to cut $150K in annual funding to reduce expenditures by $250k. PROJECT ACCUMULATION FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 114 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET COMMUNITY DEVELOPMENT GRANTS FUND This Fund is used to record the transactions related to the Community Development Block Grant and HOME programs. These are competitive grants that the City applies for, to rehabilitate buildings and qualifying citizens’ homes. The City was approached by the County to become part of the Urban County program, and on May 24, 2011, adopted Resolution No. 36-11, affirming that partnership. 2017/18 Adopted Budget Page 115 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 170,828 $ 128,824 $ 67,631 $ 109,969 $ 209,969 Revenues from grants: CDBG 99,909 - 111,389 1 168,530 304,951 HOME - - - - - CalHOME - - - - - Principal repayments 39,025 - - - - Investment income 600 Other revenues 2,350 (280) - - - Total revenues 141,884 (280) 111,389 168,530 304,951 Expenditures for: CDBG (183,217) (60,913) (69,051) (68,530) (304,951) HOME (537) - - - - CalHOME (134) - - - - Other - - - - - Total expenditures (183,888) (60,913) (69,051) (68,530) (304,951) Revenues over(under) transfers out (42,004) (61,193) 42,338 100,000 - Ending cash balance $ 128,824 $ 67,631 $ 109,969 $ 209,969 $ 209,969 NOTES: With Resolution No. 36-11, adopted on May 24, 2011, the City of Morro Bay is committed to be part of the Urban County program for the allocation of CDBG monies. The City will receive its 2012/13 CDBG allocation through the County in the amount of $57,533. The fy 13/14 funding allocation as approved by the City Council on 1/28/14 is allocated as follows: City's Pedestrian Accessibility Project Senior Nutrition Program Program administration The FY 17/18 grant funding is confirmed based on a signed sub-recipient agreements (3 -way) between the County of SLO , Morro Bay and Atascadero for the years 2010-2016. These funds will be received in the budgeted fiscal year. CITY OF MORRO BAY 2017/18 ADOPTED BUDGET COMMUNITY DEVELOPMENT GRANTS FUND 2017/18 Adopted Budget Page 116 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET STATE GAS TAX FUND This Fund is required by the State to account for monies received from gasoline taxes. The majority of this money must be expended for constructing, maintaining and/or improving major City streets and storm drains. 2017/18 Adopted Budget Page 117 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ - $ - $ - - Revenues from: State Gas Tax, Section 2105 71,495 57,839 57,740 64,230 62,319 State Gas Tax, Section 2106 48,006 49,783 48,733 36,151 42,439 State Gas Tax, Section 2107 76,480 74,154 75,185 89,194 80,507 State Gas Tax, Section 2107.5 3,000 3,000 3,000 3,000 3,000 State Gas Tax, Section 2103 146,453 101,618 52,828 24,256 42,929 Other revenues - - - 20,731 74,099 Total revenues 345,434 286,394 237,486 237,562 305,293 Less transfers to General Fund for: Street Maintenance (342,434) (283,394) (234,486) (234,562) (302,293) Engineering - Sec 2107.5 (3,000) (3,000) (3,000) (3,000) (3,000) Total transfers out (345,434) (286,394) (237,486) (237,562) (305,293) Revenues over(under) transfers out - - - - - Ending cash balance $- $- $- $- - NOTES: Budget amounts are provided by Michael Coleman, Fiscal Policy Advisor for CSMFO and the League of CA Cities; for more details, visit his website http://www.californiacityfinance.com/#TRANSPORTATION. STATE GAS TAX FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 118 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET LOWER COST VISITOR ACCOMMODATIONS MITIGATION FEE FUND This Fund began in 2008 for the purpose of collecting in-lieu mitigation fees for lower cost visitor- serving overnight accommodations, such as hostels and tent campground units, as required by California Coastal Commission actions on coastal development permits, since 1977. Individual fees range from a low of $27,720, to a high of $6,000,000. The entire Fund, and accrued interest, shall be used for creating accommodations, and other potential projects, deemed acceptable by the Coastal Commission. Any funds, remaining after 10 years from their deposit date, shall be donated to an acceptable agency, or organization, to provide lower-cost public access and recreation improvements to and along the shoreline, including improvements to the California Coastal Trail. 2017/18 Adopted Budget Page 119 2015/16 2016/17 2017/18 2013/14 2014/15 Amended Proposed Adopted Actual Actual Budget Budget Budget Beginning cash balance $ 36,545 $ 36,776 $ 37,068 $ 53,618 $ 53,618 Revenues from: Mitigation fees - - 15,735 - - Interest 231 292 815 - - Total revenues 231 292 16,550 - - Expenditures for capital outlay: Lower cost visitor accommodations - - - - - Revenues over (under) expenditures 231 292 16,550 - - Ending cash balance $ 36,776 $ 37,068 $ 53,618 $ 53,618 $ 53,618 LOWER COST VISITOR ACCOMMODATIONS MITIGATION FEES FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 120 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET TRAFFIC SAFETY FUND This Fund was established based on Section 1463 of the Penal Code, which states that all fines and forfeitures collected from any person charged with a misdemeanor under this code shall be deposited into a special fund known as the “Traffic Safety Fund.” The money is to be used exclusively for official traffic control devices and the maintenance thereof, equipment and supplies for traffic law enforcement and traffic accident prevention, and for the maintenance, improvement, or construction of public streets, bridges, and culverts within the city, but not for the compensation of traffic or other police officers. Prior to 1999, this revenue was recorded in the General Fund. 2017/18 Adopted Budget Page 121 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ - $ - $ - $- Revenues from: Vehicle Code Fines 19,012 15,624 8,888 13,000 13,000 Transfers In 3,147 2,659 Less transfers to General Fund (19,012) (18,771) (11,547) (13,000) (13,000) Revenues over(under) transfers out - - - - - Ending cash balance $ - $ - $ - $ - $- TRAFFIC SAFETY FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 122 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET SPECIAL SAFETY GRANTS FUND This Fund was originally established for the Supplemental Law Enforcement Services Fund (SLESF) grant. Government Code Sections 30061-30065 establish the authority for the SLESF, also known as the State COPS grant. The title of the Fund was changed to allow grants for Fire Services to be managed here as well. 2017/18 Adopted Budget Page 123 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 54,111 $ 96,985 $ 33,021 $ 109,144 $ 109,144 Revenues from: State grant 100,000 106,230 114,618 100,000 100,000 Interest 237 505 - - - Total revenues 100,237 106,735 114,618 100,000 100,000 Expenditures: Personnel services (14,878) (15,494) (17,923) (40,086) (42,090) Supplies (42,485) (33,208) (17,977) (10,000) (9,700) Services - (2,105) - - Capital outlay - (119,892) (2,595) (49,914) (40,000) Other - - - - - Total expenditures (57,363) (170,699) (38,495) (100,000) (91,790) Revenues over(under) expenditures 42,874 (63,964) 76,123 - 8,210 Ending cash balance $ 96,985 $ 33,021 $ 109,144 $ 109,144 $ 117,354 NOTES: On August 17, 2012, California State Controller John Chiang issued a letter stating Chapter 43, Statutes of 2012 (SB 1023), amended Government Code Section 30063 related to SLESF/COPS. That amendment removed the reporting requirements to the State Controller, as well as the public hearing requirement that had been necessary in the past to set the budget. Appropriations for most recent two Fiscal Years:FY 2016/17 FY2017/18 Part-time property technician $ 20,043 $ 21,045 Part-time training coordinator 20,043 21,045 Electronic citation writers 10,000 9,700 Unmarked fleet vehicle; Watch Commander emergency equipment; high risk response kits; events trailer 49,914 40,000 $ 100,000 $ 91,790 SPECIAL SAFETY GRANTS FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 124 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET PARKING IN-LIEU FUND The City has established a formula for calculating the number of parking spaces required to adequately service a new business establishment, or the expansion of an existing one. Developers may choose to pay a fee, instead of dedicating real estate to parking spaces. This Fund has been set up to capture those in-lieu fees. On October 8, 2013, the City Council adopted Resolution No. 48-13, dedicating $399,000 to the City- owned triangle parking lot adjacent to the Embarcadero. 2017/18 Adopted Budget Page 125 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 399,676 $ 410,706 $ 390,281 $ 312,140 $ 312,140 Revenues from: Parking in-lieu fees/agreements 8,476 4,804 - - - Interest income 2,554 - 859 - - Other revenues and transfers - - - - - Total revenues and transfers in 11,030 4,804 859 - - Expenditures: Contract services - - - - - Transfers out: Enterprise - - - - - Capital improvement - (25,229) (79,000) - - Subtotal - (25,229) (79,000) - - Total expenditures, transfers out and reservations - (25,229) (79,000) - - Revenues over(under) expenditures and transfers out 11,030 (20,425) (78,141) - - Ending cash balance $ 410,706 $ 390,281 $ 312,140 $ 312,140 $ 312,140 NOTES: In January 2011, the City sold the Brannigan's restaurant and the parking lot on Market Avenue. The City entered into a loan agreement with the purchaser that provides for annual payments until 2020, when the balance is due in full. Current payments are being deposited into the General Fund Maintenance Fund; in 2020, $500,000 must be deposited into this fund for the sale of the parking lot. On October 8, 2013, Council passed Resolution No. 48-13, designating $399,000 for revisions to the parking in-lieu map, and improvements to the City-owned Front Street and Triangle parking lot adjacent to the Dynegy Power Plant. On December 31, 2015, the City reacquired the restaurant and parking lot properties on Market Avenue. With this acquisition, no funds are due to the Parking In-Lieu Fund, as the $500k, originally borrowed from this Fund, has been justified by the parcel appraisal of $500k for the parking lot. PARKING IN-LIEU FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 126 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET TRANSIT FUND The Transit Fund accounts for the operations and activities associated with the City’s public transit system, Morro Bay Transit, which provides fixed route, Call-A-Ride, and Trolley functions. Due to significant decreases in State transportation funds in the 2008/09, 2009/10, and 2010/11 fiscal years, Council approved replacing the Dial-A-Ride service with a flex fixed route system to best utilize transit funds, and still provide service to the citizens. This flex fixed route operates one fixed route that flexes, or deviates, off-route to provide limited, advance-scheduled, curb-to-curb service (Call-A- Ride), then returns to the next fixed route stop. The primary revenue stream for this Fund is Transportation Development Act (TDA) money. TDA was enacted by the State Legislature in 1971 to make funds available for transit, pedestrian way and bikeway projects, transportation planning, ridesharing and street and road improvements. Funds for the TDA come from 1/4 cent of the retail sales tax, for Local Transportation Funds (LTF), and from sales taxes on diesel fuel, for State Transit Assistance (STA). These funds are allocated annually by the San Luis Obispo Council of Governments (SLOCOG) to eligible claimants, under two funding programs: the Local Transportation Fund (LTF) and the State Transit Assistance (STA). Two percent of the TDA funds received by the City are specifically set aside for bike path/lane projects, which is accounted for in a separate fund. The remaining TDA funds are used for the fixed route, Call- A-Ride and Trolley services. 2017/18 Adopted Budget Page 127 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 166,161 $ 228,030 $ 150,156 $ 150,156 $ 132,300 Revenues: MB Transit: LTF 256,726 -217,085 222,185 190,933 STA 17,571 - 18,958 15,423 13,890 Grants -- 77,261 127,664 77,017 Farebox 18,350 - 19,300 24,000 24,000 Other 936 1,901 -- - Subtotal 293,583 1,901 332,604 389,272 305,840 Trolley: LTF 60,100 - 57,673 59,855 60,526 Grants ---- - Farebox 13,041 - 15,200 13,000 13,000 Advertising 5,915 - 5,000 5,000 5,000 Rent 2,687 - 2,000 2,000 2,000 Other ---- - Subtotal 81,743 - 79,873 79,855 80,526 375,326 1,901 412,477 469,127 386,366 Expenses for: MB Transit (no depreciation)(168,918) - (272,629) (347,153) (168,848) Trolley (no depreciation)(64,764) -(60,073) (60,055) (60,726) Short Range Transit Plan ---- (45,000) Capital Bus Replacement ---- (83,000) Other - reservations ---- - Subtotal (233,682) - (332,702) (407,208) (357,574) Transfers out to: General fund for cost allocation (79,775) (79,775) (79,775) (79,775) (79,775) Total expenses and transfers out (313,457) (79,775) (412,477) (486,983) (437,349) Revenues and transfers in over(under) expenses and transfers out (use of Fund Balance)61,869 (77,874) -(17,856) (50,983) Ending cash balance $ 228,030 $ 150,156 $ 150,156 $ 132,300 $ 81,317 NOTES: 1 $15,000 $43,992 $10,000 2 LTF Unearned Revenue from FY 14/15 available after reservations and allocations from Notes 1 is $87,963 to be allocated as follows: $4,671 Allocate to Transit for portion of Short Range Transit Plan not funded with FY 16/17 LTF transit allocation $10,000 Allocate to Trolley for local match to RTF grant for FY 18/19 trolley acquisition $73,292 Allocate to Roads 3 the 5% budgeted for Reserved $20,992 in FY 12/13 after reduction for Saturday service and $23,000 in FY 13/14 for volunteer senior bus program (these funds released to Senior Citizens Inc in FY 15/16 for volunteer senior bus program that began in mid-February 2016) Reserved in FY 15/16 for local match to RTF grant for replacement bus to be ordered in FY 16/17 (FY 16/17 LTF allocation includes funds RTF local match and this reservation can be reallocated) FY 14/15 TDA audit indicated there was $33,000 in restricted LTF revenue which had been reserved as contingencies. This amount will remain as contingencies to address additional cuts to FY 15/16 or FY 16/17 TDA or if the City's RTA contribution is more than TRANSIT FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY Total revenues Reserved $5,000 per year in FY 12/13, 13/14 and 14/15 for performance audit to be completed by end of FY 15/16 (SLOCOG deducted $9,400 of City's LTF from FY 15/16 allocation for consultant so this reservation can be reallocated in FY 16/17) FY 14/15 TDA audit indicated there was $131,955 in unearned LTF revenue part of which had been reserved for certain items in FY 12/13, 13/14 and 14/15 budgets noted as follows: 2017/18 Adopted Budget Page 128 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET LOCAL TRANSPORATION FUNDS, PEDESTRIAN AND BIKEWAY PROJECTS FUND The primary revenue stream for this Fund is Transportation Development Act (TDA) money pedestrian way and bikeway projects. Two percent of the TDA funds received by the City are specifically set aside for this purpose, under TDA Article 3, 99260). 2017/18 Adopted Budget Page 129 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 20,369 $ 30,248 $ - $ 7,907 $ 765 Revenues from: LTF 9,732 10,721 7,907 7,858 8,000 Interest income 147 - - - - Total revenues 9,879 10,721 7,907 7,858 8,000 Expenditures: Bikeway paths - (40,969) - (15,000) (8,000) Revenues over(under) expenditures and transfers out 9,879 (30,248) 7,907 (7,142) - Ending cash balance $ 30,248 $ - $ 7,907 $ 765 $ 765 NOTES: With the FY 16/17 budget, City Council is approving $15k for bike path improvements. LOCAL TRANSPORTATION FUNDS, BIKEWAY PATHS, FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 130 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET LOCAL TRANSPORTATION FUNDS, ROADS, FUND The primary revenue stream for this Fund is Transportation Development Act (TDA) money for roads projects, under TDA Article 8, 99400(a)). 2017/18 Adopted Budget Page 131 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ 100 $ 28,885 $ 28,885 $ 102,177 Revenues from: LTF 43,320 28,785 - 73,292 Interest income 100 - - - - Total revenues 43,420 28,785 - 73,292 - Expenditures: Roads (43,320) - - - - Revenues over(under) expenditures and transfers out 100 28,785 - 73,292 - Ending cash balance $ 100 $ 28,885 $ 28,885 $ 102,177 $ 102,177 NOTES: FY 13/14 funding was for the Morro Creek Bridge. LOCAL TRANSPORTATION FUNDS (ROADS) FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 132 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET RISK MANAGEMENT INTERNAL SERVICE FUND This Fund collects contributions from all departments, and disburses payments for the City’s insurance funds: Worker’s Compensation, Unemployment, General Liability, Property Damage, and Vehicle Insurance. With the adoption of the 2015/16 budget, Resolution No. 32-15 was enacted. This Resolution sets the minimum committed balance as $100,000; any excess cash may be programmed by City Council. 2017/18 Adopted Budget Page 133 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 1,778,403 $ 1,451,118 $ 1,460,603 $ 604,966 $ 706,896 Revenues from: Charges for services 1,341,962 1,380,176 1,424,181 1,385,778 1,385,778 Investment earnings 9,644 9,980 6,714 600 400 Other revenue - 2,843 - - - Total revenues 1,351,606 1,392,999 1,430,895 1,386,378 1,386,178 Expenses for: Personnel - - (25,562) (44,238) (52,990) Supplies (3,800) (7,865) - - Services (152,840) (29,915) - (2,000) (1,940) Worker's compensation insurance (300,421) (353,091) (613,166) (456,189) (456,189) Unemployment insurance (19,962) (4,075) (33,510) (25,894) (25,894) General liability insurance (588,417) (651,062) (644,416) (691,899) (691,899) Property damage insurance (300,936) (24,229) (23,170) (24,282) (24,282) Vehicle insurance (15,785) (15,388) (17,638) (18,485) (18,612) Other insurance (24,110) (31,989) (30,427) (21,168) (21,855) Total expenses (1,406,271) (1,117,614) (1,387,889) (1,284,155) (1,293,661) Revenues over(under) expenses (54,665) 275,385 43,006 102,223 92,517 Transfers out: General Fund (252,620) (125,900) - (293) - MBTBID (140,000) General Fund Vehicle Replacement (20,000) - - - - Strategic investment spending - - (898,643) - - Total transfers (272,620) (265,900) (898,643) (293) - Ending cash balance $ 1,451,118 $ 1,460,603 $ 604,966 $ 706,896 $ 799,413 NOTES: In FY 12/13, $179,600 was transferred to the General Fund: $100,000 for operations, due to the loss of the Dynegy funding, was initially adopted, and at the FY 12/13 mid-year budget review, $79,600 for retirement payouts In FY 13/14, adopted transfers out of $272,620 are for the following: General Fund Emergency Reserve - fund de $38,195 General Fund - final year of Dynegy reduct 100,000 General Fund - contribution to TBID of 50%58,425 General Fund - Council bequests 56,000 General Fund Vehicle Replacement - add to balance of cash for the purchase of a 4-door hybrid for A 20,000 $272,620 At the FY 13/14 mid-year budget review, an additional $416,000 was requested to be transferred to the General Fund to cover the costs of employee separations and the negotiated lowering of vacation banks. In FY 14/15, adopted transfers out of $140,000 are for the following: Visitors Center $100,000 Tourism Bureau Events 40,000 LEAP program 49,000 Management Partners 76,900 $265,900 In FY 15/16, Reso No. 32-15 was adopted, which set the minimum balance for this fund at $100,000. The transfer out ($900,000) moves excess cash to a strategic investment spending account for specific projects. RISK MANAGEMENT INTERNAL SERVICE FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 134 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET SPECIAL ASSESSMENT DISTRICTS FUND This Fund was created to record parcel assessments and expenditures associated with certain housing developments within the City limits. NORTH POINT The California Coastal Commission and the City of Morro Bay worked with landowners at the northern end of the Morro Bay shoreline bluff top to preserve a natural area, as part of a small housing development plan. This is a landscape and lighting district. LOPRENA This is a storm drain assessment district. 2017/18 Adopted Budget Page 135 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 46,567 $ 52,975 $ 58,592 $ 62,622 $ 66,299 Revenues: Property tax assessments: North Point 5,645 5,645 4,796 5,645 5,645 Loprena 2,832 2,832 2,832 2,832 2,974 Total revenues 8,477 8,477 7,628 8,477 8,619 Expenditures: North Point Personnel (228) (1,103) (800) (1,841) Supplies - (2,000) (300) Services (2,069) (2,632) (2,495) (2,000) (2,100) Loprena - Subtotal expenditures (2,069) (2,860) (3,598) (4,800) (4,241) Revenues over(under) expenditures 6,408 5,617 4,030 3,677 4,378 Ending cash balance $ 52,975 $ 58,592 $ 62,622 $ 66,299 $ 70,677 NOTES: SPECIAL ASSESSMENT DISTRICTS FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 136 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET CLOISTERS SPECIAL ASSESSMENT DISTRICT This Fund was created to record parcel assessments and expenditures associated with the Cloisters housing developments within the City limits. This is a landscape and lighting district. 2017/18 Adopted Budget Page 137 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ (11,335) $ 63,549 $ 85,920 $ 114,893 $ 123,337 Revenues from: Cloisters assessment 151,429 148,944 149,565 148,944 148,944 Interest income 154 537 - - - Transfer in 49,961 - 13,568 - - Total revenues 201,544 149,481 163,133 148,944 148,944 Expenditures Personnel (3,850) (4,786) (11,901) (11,000) (44,459) Supplies (1,931) (5,094) (5,869) (7,000) (7,000) Services (120,879) (117,230) (116,390) (122,500) (66,300) Total expenditures (126,660) (127,110) (134,160) (140,500) (117,759) Revenues over (under) expenditures 74,884 22,371 28,973 8,444 31,185 Ending cash balance (reserve) $ 63,549 $ 85,920 $ 114,893 $ 123,337 $ 154,522 NOTES: With the FY 12/13 budget, maintenance was outsourced. On May 13, 2014, City Council took action to return $87,743.61 to the Cloisters Assessment District, due to expenditures made that exceeded assessment revenues, but occurred without Council approval. In May 2014, Cloisters was separated into its own fund; this presentation includes the reserve. In FY 17/18 staff time has been allocated based on time spent in the past and will use less contracted services. OPERATING AND ACCUMULATION FUNDS CLOISTERS ASSESSMENT DISTRICT 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 138 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET TRUST AND AGENCY FUND GENERAL PLAN MAINTENANCE FEE Funds accumulated in this account are to be used to update the City’s General Plan. The fee is part of the building permit. 2017/18 Adopted Budget Page 139 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 79,141 $ 90,796 $ 107,159 $ 272,941 $ 67,553 Revenues from: State Grant Income 58,651 (58,651) Maintenance fees 11,655 16,434 23,187 13,487 - Transfer in - - 300,000 - - Total revenues 11,655 16,434 381,838 (45,164) - Expenditures - (71) (216,056) (160,224) - Revenues over (under) expenditures 11,655 16,363 165,782 (205,388) - Ending cash balance $ 90,796 $ 107,159 $ 272,941 $ 67,553 $ 67,553 NOTES: In FY 06/07, funds begain accumulating for this purpose. FY17/18 Note: The General Plan/Local Coastal Program update is funded partially through General Plan Maintenance fee proceeds, along with several grants and previous year contributions from the Strategic Opportunity Fund. TRUST AND AGENCY - GENERAL PLAN MAINTENANCE FEE 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 140 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET TRUST AND AGENCY FUND COMPENSABLE LEAVES ACCUMULATION This account is established with the Fiscal Year 2016/17 budget, as a result of a Grand Jury investigation and resulting comments, regarding San Luis Obispo County cities’ unfunded liability for employee compensable accumulations. These banks include accruals for vacation, compensation in- lieu of overtime, floating holiday pay, and administrative leave hours, which, upon separation from City service, are payable in full. The City has maximum limits on each of these compensable accumulation banks to control this liability, but has not prefunded in anticipation of separations. Funds accumulated in this account are from a 1% charge to regular payroll hours, and will be used for employee separation payments. This fund does comingle General Government and Enterprise Funds’ money; however, a record of contributions and disbursements, by amount and type, is maintained to ensure proper use. 2017/18 Adopted Budget Page 141 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $- $- $- $- $ 369,973 Revenues from: Governmental Funds - - - 47,906 50,000 Water operations - - - 3,365 Sewer operations - - - 3,164 Harbor operations - - - 5,117 Wastewater operations - - - 5,535 Internal Service - IT & Risk - - - 1,645 Transfer In:- - - 399,268 Total revenues - - - 466,000 50,000 Expenditures - - - #(96,027) - Revenues over (under) expenditures - - - 369,973 50,000 Ending cash balance $- $- $- $ 369,973 $ 419,973 NOTES: In FY 16/17, the City began accumulating funds to pay for this liability. As of June 2016, the total unfunded compensable leave liability was ~$686,000. #Actual payouts as of 5/18/2017 (not budgetted appropriations) TRUST AND AGENCY - COMPENSABLE LEAVES ACCUMULATION 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 142 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET MORRO BAY/CAYUCOS SANITARY DISTRICT WASTEWATER TREATMENT FACILITY FUND This Fund records the revenues and expenses associated with the operation of the Wastewater Treatment Facility. The Plant provides services to the City residents and businesses, as well as the unincorporated community of Cayucos. City of Morro Bay employees operate the Plant, with operations oversight handled through a joint powers agreement between the City and the Cayucos Sanitary District. A major upgrade had been planned for the aging facility (built in the 1950s), with the operational target of 2015. In December 2012, the City Council ceased efforts to upgrade the Facility at its current waterfront location, and began efforts to secure a new location as a Water Reclamation Facility, away from its current location in the coastal zone. The new project may result in a City-owned Facility, ending the long-standing agreement with the Cayucos Sanitary District. 2017/18 Adopted Budget Page 143 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ - $ - $ - $ - $ - Revenues from: Charges for services 2,691,389 4,401,712 4,935,063 2,387,051 2,491,530 Other revenue - - - Total revenues 2,691,389 4,401,712 4,935,567 2,387,051 2,491,530 Expenses for: Personnel (808,783) (821,827) (872,286) (946,238) (1,018,213) Supplies (328,026) (377,314) (343,600) (386,600) (347,050) Services (813,848) (773,351) (988,681) (1,016,678) (1,099,526) Other (no depreciation)(46,847) - - - Capital improvements - (1,111,823) (465,000) - Capital improvements (City only) (686,882) (1,307,543) (2,234,000) General Fund administration (7,003) (9,854) (30,000) (30,000) IT Replacement Fund - - (2,000) (7,535) (26,741) Total expenses (2,691,389) (4,401,712) (4,935,567) (2,387,051) (2,491,530) Revenues over(under) expenses - - - - - Ending cash balance $- $ - $- $- $ - NOTES: The FY 16/17 Other Revenue represents the State Revolving Fund loan; this will pay planning and design costs for the City-owned Water Reclamation Facility (WRF). The FY17/18 Budget includes WRF relkated costs separately from this fund in a discrete capital project fund. Charges for service include City share of $1,870,530 (Sewer Operating Fund) and Cayucos share of $621,000 2017/18 ADOPTED BUDGET CITY OF MORRO BAY MORRO BAY/CAYUCOS SANITARY DISTRICT WASTEWATER TREATMENT FACILITY FUND 2017/18 Adopted Budget Page 144 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET PARK IN-LIEU FEES FUND Local governments in California provide a critical role in the effort to set aside parkland and open space for recreational purposes. Since the passage of the 1975 Quimby Act (California Government Code §66477), cities and counties have been authorized to pass Ordinances, requiring developers to set aside land, donate conservation easements, or pay fees for park improvements. Revenues generated through the Quimby Act cannot be used for the operation and maintenance of park facilities. The goal of the Quimby Act was to require developers to help mitigate the impacts of property improvements. To manage the special revenue fees collected, this fund was established. 2017/18 Adopted Budget Page 145 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 65,283 $ 96,386 $ 10,214 $ 10,214 $ 10,214 Revenues from: Impact fees 43,801 17,282 - - - Interest income 510 422 - - - Other - 2,000 - - - Total revenues 44,311 19,704 - - - Capital outlay (13,208) (105,876)- - - Ending cash balance $ 96,386 $ 10,214 $ 10,214 $ 10,214 $ 10,214 NOTES: The expenditure in FY 14/15 is for the Del Mar parking lot upgrade. 2017/18 ADOPTED BUDGET CITY OF MORRO BAY PARK IN-LIEU FEES FUND 2017/18 Adopted Budget Page 146 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET STATE PARK MARINA SPECIAL REVENUE FUND This Fund manages the marina concessions revenues that are received for the planning and environmental review of proposed dredging and renovation of the State Park Marina. 2017/18 Adopted Budget Page 147 - 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 19,365 $ 65,283 $ 146,585 $ 146,585 $ 191,585 Revenues from: Concessions 72,667 81,302 70,000 80,000 86,500 Intergovernmental - - - - - Interest income - - - - - Total revenues 72,667 81,302 70,000 80,000 86,500 Expenditures: Dredging (26,749) - (70,000) (35,000) (10,000) Revenues over(under) expenditures 45,918 81,302 - 45,000 76,500 Ending cash balance $ 65,283 $ 146,585 $ 146,585 $ 191,585 $ 268,085 NOTES: For FY 16/17, $10,000 is for wetlands monitoring, and $25,000 for dredge permitting For FY 17/18, $10,000 is for wetlands monitoring STATE PARK MARINA SPECIAL REVENUE FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 148 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET HOUSING IN-LIEU SPECIAL REVENUE FUND This Fund was set up to collect impact fees for affordable housing. In cases where affordable housing is required, and the developer has substantially demonstrated to the City’s satisfaction that the reasonable and practical development of affordable housing, either on-site or off-site is infeasible, the City may permit the developer to satisfy the requirements to provide affordable housing by payment of an in-lieu housing fee. The fee is to be paid prior to the issuance of a building permit (where square footage is added) or a final tract map. Fees accepted for affordable housing may be used to construct, or assist in the construction of, housing, for rent or sale, to very low and/or low and moderate income families, to purchase land for the purpose of affordable housing, to assist very low and/or low and moderate income families to afford adequate housing, or for other measures to provide housing for very low and/or low and moderate income families. Also, the City may use the money for capital projects, such as the Housing Element or General Plan Update. As an option, the in-lieu fees may be transferred to another public agency, such as a nonprofit housing provider, for the purpose of providing affordable housing in the City. 2017/18 Adopted Budget Page 149 2016/17 2017/18 2013/14 2014/15 2015/16 Amended Adopted Actual Actual Actual Budget Budget Beginning cash balance $ 176,590 $ 160,502 $ 162,136 $ 112,936 $ 108,636 Revenues from: Impact fees 11,471 2,634 - - Interest income 1,031 - 800 700 700 Other 25,000 - - - - Transfers in 9,410 - - - - Total revenues 46,912 2,634 800 700 700 Expenditures for: Services - - (50,000) - - Other - - - (5,000) (6,000) Transfer out to General Fund (63,000) (1,000) - - - Total expenditures (63,000) (1,000) (50,000) (5,000) (6,000) Revenues over(under) expenditures (16,088) 1,634 (49,200) (4,300) (5,300) Ending cash balance $ 160,502 $ 162,136 $ 112,936 $ 108,636 $ 103,336 NOTES: On 12/29/11, $600,000 was transferred to PSCDC Morro del Mar for a project at 555 Main St. The FY 13/14 transfer out to General Fund is for the Housing Element update ($62,000) and a Council bequeathal to the Housing Trust Fund ($1,000) The FY 14/15 transfer out to General Fund is for the Council contribution to the Housing Trust Fund ($1,000). The FY 15/16 expenditures is for the 6/23/15 decision to providing funding to Ocean View Manor, 456 Elena St. The FY 16/17 expenditure is for the Council $5,000 contribution to Home Share SLO The FY 17/18 expenditure is for the Council $5,000 contribution to Home Share SLO, and $1,000 to SLO County Housing Trust Fund HOUSING IN-LIEU FUND 2017/18 ADOPTED BUDGET CITY OF MORRO BAY 2017/18 Adopted Budget Page 150 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET SCHEDULES 1. Schedules of Capital Projects 2. Schedule of Deferred Infrastructure Maintenance Completed & Proposed 3. Schedule of Completed Facility Maintenance Projects – Historical Years 4. 2-Year Prospective Street Pavement List 5. Schedule of Completed Pavement Projects 2017/18 Adopted Budget Page 151 CITY OF MORRO BAY SCHEDULE OF CAPITAL PROJECTS FOR THE 2017/18 FISCAL YEAR AND FUTURE YEARS Proposed Projected Projected Projected TOTAL Proposed Projected Projected Projected Projected 2017/18 2018/19 2019/20 Future Years CAPITAL 2017/18 2018/19 2019/20 Future Years Total PROJECT BUDGET BUDGET BUDGET BUDGET PROJECTS PROJECT FUNDING SOURCES BUDGET BUDGET BUDGET BUDGET Revenues GOVERNMENTAL/SPECIAL REVENUE FUNDS GENERAL GOVERNMENT Laurel Ave easement rehabilitation - StormDrain Portion 97,000 97,000 Impact Fees earmarked for Storm Drains 97,000 97,000 Morro Creek Restoration 300,000 300,000 FEMA Disaster Response 300,000 300,000 Future -City Park Play Equipment 150,000 150,000 Friends of Firefighters $75K/Measure Q (future Year)$75K 150,000 150,000 Future - ADA Transition Plan Improvements - - 5,800,919 5,800,919 TBD 5,800,919 5,800,919 Future - Surf Street Stair Replacement 41,100 267,200 308,300 General Fund Capital Project Reserve 41,100 267,200 308,300 Future - Del Mar Restrooms 350,000 350,000 TBD 350,000 350,000 TOTAL GENERAL GOVERNMENT 397,000 41,100 267,200 6,300,919 7,006,219 397,000 41,100 267,200 6,300,919 7,006,219 STREET IMPROVEMENTS - - - State Route (SR)1/SR41 Interchange Impr 1 620,000 80,000 2,235,000 2,188,000 5,123,000 Appr SLOCOG Grants+Amts underspent prior projects/Local Match 792,193 423,000 3,907,807 - 5,123,000 Pavement Management Plan 926,917 750,000 925,000 7,602,000 10,203,917 SB1 - RMRA/MeasureQ/Cal Recycle Grant/UrbanStateHwyAcct 926,917 750,000 925,000 7,602,000 10,203,917 CDBG Sidewalk Accessibility Improvements 353,283 353,283 Signed Sub Receipient Agr w/SLO Co & Impact Fees 353,283 353,283 TOTAL STREET IMPROVEMENTS 1,900,200 830,000 3,160,000 9,790,000 15,680,200 2,072,393 1,173,000 4,832,807 7,602,000 15,680,200 TRANSIT FUND Replacement Vehicle - Bus 83,000 83,000 Approved Rural Tranit Grant & PTMISEA/Fund Bal Reserve$5.9K 83,000 83,000 Short Range Transit Plan 45,000 45,000 Approved LTF Tranist Alloc/Fund Bal Reserves $42.5K 45,000 45,000 TOTAL TRANSIT FUND 128,000 - - - 128,000 128,000 - - - 128,000 1 This is carryover of amount from FY 16/17 Budget approved. Revenue source is higher than requested amount, as Project Manager states that the SLOCOG Funds are ready to be drawn on, as soon as expenditures are made, as City under spent on approved projects in prior years. Expenditures Revenues 2017/18 Adopted Budget Page 152 CITY OF MORRO BAY SCHEDULE OF CAPITAL PROJECTS FOR THE 2017/18 FISCAL YEAR AND FUTURE YEARS Proposed Projected Projected Projected TOTAL Proposed Projected Projected Projected Projected 2017/18 2018/19 2019/20 Future Years CAPITAL 2017/18 2018/19 2019/20 Future Years Total PROJECT BUDGET BUDGET BUDGET BUDGET PROJECTS PROJECT FUNDING SOURCES BUDGET BUDGET BUDGET BUDGET Revenues Expenditures Revenues ENTERPRISE FUNDS WATER CAPITAL IMPROVEMENT Nutmeg tank - 3,085,000 3,085,000 Water Accum Fund and/or Debt Financing - 3,085,000 3,085,000 One Water Plan - Water Portion 2 345,575 345,575 2 Water Accum Fund 345,575 Laurel Ave - easement -Waterline portion 103,022 - 103,022 Water Accum Fund 103,022 103,022 State Park Water Line 117,500 117,500 Water Accum Fund 117,500 117,500 Chorro Creek stream gauges 12,000 20,000 595,000 627,000 Water Accum Fund 12,000 20,000 595,000 627,000 Water System Emergency Contingency 100,000 100,000 Water Accum Fund 100,000 100,000 Water Storage Tank Exterior Coating 80,000 80,000 Water Accum Fund 80,000 80,000 Water Treatment (Desal)Building Exterior Replacement - 100,000 100,000 Water Accum Fund - 100,000 100,000 Kings Tank Cleaning & Inspection - 50,000 50,000 Water Accum Fund - 50,000 50,000 TOTAL WATER FUND 758,097 3,255,000 - 595,000 4,608,097 758,097 3,255,000 0 595,000 4,262,522 SEWER (EXISTING) CAPITAL IMPROVEMENT Laurel Ave easement rehabilitation - Sewer Portion 103,022 - 103,022 Sewer Accum Fund 103,022 103,022 Embarcadero rehabilitation 80,000 615,600 695,600 Sewer Accum Fund$301K/ FY18/19 Contributions Leaseholder$314K 80,000 615,600 695,600 One Water Plan - Sewer Portion 2 345,575 345,575 2 Sewer Accum Fund 345,575 345,575 Emergency Replacement Contigency 100,000 100,000 Sewer Accum Fund 100,000 100,000 Subtotal 628,597 615,600 - - 1,244,197 628,597 615,600 - - 1,244,197 SEWER (EXISTING) CAPITAL EQUIPMENT Collections Service Truck Replacement 75,000 75,000 Sewer Equipment Replacement Fund 75,000 75,000 Vactor Replacement 540,000 - 540,000 Sewer Equipment Replacement Fund 540,000 540,000 Subtotal 615,000 615,000 615,000 615,000 WASTE WATER RECLAMATION FACILITY MASTER PLAN (NE 4,261,204 Pending Pending Pending 4,261,204 Sewer Accum Fund/SR1 Loan Proceeds if needed 4,261,204 4,261,204 TOTAL SEWER FUND 5,504,801 615,600 - - 6,120,401 5,504,801 615,600 0 0 6,120,401 HARBOR CAPITAL IMPROVEMENT Beach Street Slips - North 340,000 340,000 Harbor Accum Fund 340,000 340,000 Beach Street Slips - South 225,000 225,000 Harbor Accum Fund 225,000 225,000 Boat/Repair Storage Yard -Triangle Lot 55,576 55,576 Harbor Accum Fund 55,576 55,576 Harbor Ice Machine Maintenance 10,000 35,000 35,000 35,000 115,000 Harbor Accum Fund 10,000 35,000 35,000 35,000 115,000 South T-Pier Renovations 55,000 250,000 305,000 Harbor Accum Fund 55,000 250,000 305,000 TOTAL HARBOR FUND 685,576 35,000 35,000 285,000 1,040,576 685,576 35,000 35,000 285,000 1,040,576 2 Total Project Cost of 711,150. $20,000 is charged to FY 16/17 Public Works Budget. Balance of $691,150 split 50/50 between Water & Sewer Enterprise Funds. 2017/18 Adopted Budget Page 153 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Laurel Avenue Utility Line Rehabilitation Summary Sheet (1 of 2) Description of Capital Item This project will legitimize the prescriptive rights that the City now has through an easement agreement with the existing property owner. This will allow for permanent access for routine maintenance and periodic repair and rehabilitation of the water, sewer and storm water lines that existed prior to City incorporation. 2017/18 Adopted Budget Page 154 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rick Sauerwein, 805-772-6266 Functional Unit 6,044$ 312,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q1 2018 Percentage Complete 20%Mandate No State or Federal mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 10,000$ -$ -$ -$ 10,000$ 6,044$ 20,000$ -$ -$ -$ 26,044$ -$ 267,000$ -$ -$ -$ 267,000$ 6,044$ 297,000$ -$ -$ -$ 303,044$ -$ 15,000$ -$ -$ -$ 15,000$ 6,044$ 312,000$ -$ -$ -$ 318,044$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 15,000$ -$ -$ -$ 15,000$ -$ 15,000$ -$ -$ -$ 15,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 3,022$ 100,000$ -$ -$ -$ 103,022$ 3,022$ 100,000$ -$ -$ -$ 103,022$ -$ 97,000$ -$ -$ -$ 97,000$ 6,044$ 297,000$ -$ -$ -$ 303,044$ Section 7 Section 8 Section 9 Elimination of unecessary recurring maintenance. Non-Secured Financing/Reimbursements New or Additional Impact on Operating Budget If Water Capital Reserves are not sufficient to fund the entire project anticpate using an i-Bank loan or USDA financing. No reimbursement financing for this project. Sewer Capital Reserves Storm Drain Impact Fees Total Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Water Capital Reserves Activity Land acquisition Comments/Impacts for Other Departments N/A Long Term Savings Environmental & Design Construction Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. Justification; Linkage to Council Goals, Plans, or other Objective Access to this easement has remained in question since the inception of the City due to the lack of an official documented easement. Portions of the existing water line are located slightly outside the existing fenced boundary and underlie a material storage area on the neighbor’s property. Maintenance records and sewer video indicate that root intrusion is a reoccurring problem in areas of the easement, storm drains are badly deteriorated and may contributed to continuous ground movement on these highly unstable hillsides. History and Current Status; Impact if Canceled or Delayed Staff Design. Environmental Documentation needs additional update. The initial environmental review generated significant public concern about the associated truck traffic during construction. This led to a reevaluation of the construction method and a switch from two steel tanks to a single concrete structure. Project Costs Laurel Avenue Utility Line Rehabilitation Detailed Sheet (2 of 2) Project Overview Department(s)Water Capital Improvement Budget Year 2019/20 Future Years $318,044 Type of Project Completion Date Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 2017/18 Adopted Budget Page 155 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Morro Creek Steambank Restoration Summary Sheet (1 of 2) Description of Capital Item Restoratrion of streambank erosion, including; staff emergency response overtime for road closures, clearance of fallen trees and flood debris, repair wind damaged fence at tennis court, along with streambank erosion restoration. 2017/18 Adopted Budget Page 156 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rick Sauerwein, 805-772-6266 Functional Unit -$ 300,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q4 2018 Percentage Complete 20%Mandate No State or Federal mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 50,000$ -$ -$ -$ 50,000$ -$ 246,000$ -$ -$ -$ 246,000$ -$ -$ -$ -$ -$ -$ -$ 296,000$ -$ -$ -$ 296,000$ -$ 4,000$ -$ -$ -$ 4,000$ -$ 300,000$ -$ -$ -$ 300,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 4,000$ -$ -$ -$ 4,000$ -$ 4,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 300,000$ -$ -$ -$ 300,000$ -$ -$ 300,000$ -$ -$ -$ 300,000$ Section 7 Section 8 Section 9 Environmental & Design N/A Total Comments/Impacts for Other Departments N/A Long Term Savings Elimination of unecessary recurring maintenance. Non-Secured Financing/Reimbursements FEMA Disaster Response Construction Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Method(s) of Financing Funding Source(s) Future Years $300,000 Type of Project Completion Date Activity This project is required to restore damage from January and February 2017 storms. 75% of project costs will be funded by FEMA as a result of three Presidential Disaster declarations. This unplanned/unbudgeted expense was not contemplated as a specific Council Goal but will contribute to their goal of Improving Infrastructure. History and Current Status; Impact if Canceled or Delayed Staff is working with SLO County & California Office of Emergency Services and FEMA to file required administrative paperwork and develop actual cost estimates for the restoration project. Initial environmental clearances and permitting requirements are also being confirmed through California Coastal Commission, California Department of Fish and Wildlife and the Army Corps of Engineers. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Morro Creek Steambank Restoration Detailed Sheet (2 of 2) Project Overview Department(s)Disaster Restoration 2017/18 Adopted Budget Page 157 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures City Park Play Equipment Replacement Summary Sheet (1 of 2) Description of Capital Item This project involves the demolition of existing play equipment, and replacement with Firefighter themed equipment designed for 2-5 year old children 2017/18 Adopted Budget Page 158 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Mike Wilcox, 805-772-6285 Functional Unit -$ -$ -$ -$ 150,000$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Percentage Complete 0%Mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ 120,000$ 120,000$ -$ -$ -$ -$ 30,000$ 30,000$ -$ -$ -$ -$ 150,000$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 150,000$ 150,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ 75,000$ 75,000$ -$ -$ -$ -$ 75,000$ 75,000$ -$ -$ -$ -$ -$ 150,000$ 150,000$ Section 7 Section 8 Section 9 Purchase equipment Friends of the Fire Fighter's have indicated an interest in fund raising for this project. Measure Q General Fund Total Comments/Impacts for Other Departments N/A Long Term Savings Replacing equipment will satisfy the safety concerns identified by CJPIA, therby reducing insurance costs, and unknown financial impacts from a potential injury. Non-Secured Financing/Reimbursements Friends of the Firefighters Install new playground Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Method(s) of Financing Funding Source(s) Future Years $150,000 Type of Project Completion Date Activity This project is inline with Council Adopted Strategic Plan Goal #3 - Improve Infrastructure and Public Spaces. To continue to provide the highest standard of safety and aestetically pleasing facilities for residents, tourist's, and visitor's. History and Current Status; Impact if Canceled or Delayed The existing play equipment is obsolete and replacement parts are no longer available. Additionally, several safety issues were identified during the CJPIA playground inspections that can only be addressed through replacement. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 City Park Play Equipment Replacement Detailed Sheet (2 of 2) Project Overview Department(s)Public Works 2017/18 Adopted Budget Page 159 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures ADA Transition Plan Summary Sheet (1 of 2) Description of Capital Item This project corrects identified deficiencies at City facilities and within the public right of way that require maintenance, renovation or replacement to achieve current ADA Accessibility standards. 2017/18 Adopted Budget Page 160 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Non-Departmental Contact Rick Sauerwein, 805-772-6266 Functional Unit 140,000$ -$ -$ -$ 5,800,919$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern N/A Percentage Complete 0%Mandate None Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 140,000$ 5,800,919$ 5,940,919$ -$ -$ -$ 140,000$ -$ -$ -$ 5,800,919$ 5,940,919$ -$ -$ -$ -$ -$ -$ 140,000$ -$ -$ -$ 5,800,919$ 5,940,919$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 140,000$ 5,800,919$ 5,940,919$ -$ 140,000$ -$ -$ -$ 5,800,919$ 5,940,919$ Section 7 Section 8 Section 9 If additional Local Funds are not budgeted, work will be adjusted based on the actual bid prices received Total Comments/Impacts for Other Departments N/A Long Term Savings Construction N/A Non-Secured Financing/Reimbursements Activity Local Funds Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Method(s) of Financing Funding Source(s) ADA Transition Plan Detailed Sheet (2 of 2) Project Overview Department(s)General Government Budget Year 2018/19 Efforts are focused on high risk locations and other key areas of business activity that inhibit access to disabled residents and tourists. The project contributes to two of Council's Adopted Goals by advancing Economic Sustainability and Improving Infrastructure. History and Current Status; Impact if Canceled or Delayed This work has been proceeding in a phased approach as funds are available,which began in 1991. Project Costs Budget Year 2019/20 Future Years $5,940,919 Type of Project Completion Date Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs 2017/18 Adopted Budget Page 161 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Surf Street Stair Replacement Summary Sheet (1 of 2) Description of Capital Item Replacement of existing wooden stairway from the westerly terminis of Surf Street to the Front Street Parking Lot. 2017/18 Adopted Budget Page 162 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rob Livick, PW Director Functional Unit -$ -$ 41,100$ 267,200$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern TBD Percentage Complete 0%Mandate Replacement Facility must be ADA Compliant Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ 36,100$ -$ 36,100$ -$ -$ -$ 264,200$ -$ 264,200$ -$ -$ -$ -$ -$ -$ -$ -$ 36,100$ 264,200$ -$ 300,300$ -$ -$ 5,000$ 3,000$ -$ 8,000$ -$ -$ 41,100$ 267,200$ -$ 308,300$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ 5,000$ 3,000$ 8,000$ -$ -$ 5,000$ 3,000$ -$ 8,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 41,100$ 267,200$ 308,300$ -$ -$ -$ 41,100$ 267,200$ -$ 308,300$ Section 7 Section 8 Section 9 Type of Expenditure Method(s) of Financing Funding Source(s) Non-Secured Financing/Reimbursements N/A Total Elimination of unecessary recurring maintenance. Long Term Savings New or Additional Impact on Operating Budget This project is required to replace an existing wooden stairway that is at te end of its usefull life with an ADA accessable facility that includes switchback ramp and stairs. Replacement is to address the FY 17/18 Council Adopted Goal 3e: Improve Infrastructure and Public Spaces History and Current Status; Impact if Canceled or Delayed The existing stairs were constructed 40+or- years ago and are near the end of their usefull life. If not replaced the City will need to close then remove the existing wooden stairs due to safety issues. There is currently no funding for this project and limited grant oppurtunities. Project Costs Activity Environmental,Permitting&Design Construction Total Operating Cost Est. Total Expenditures Est. Total Capital Cost Est. General Fund Staff Costs Comments/Impacts for Other Departments N/A Justification; Linkage to Council Goals, Plans, or other Objective Surf Street Stair Replacement Detailed Sheet (2 of 2) Project Overview Department(s)5215-Consolidated Maintenance Total Project Cost Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Future Years $308,300 Type of Project Completion Date Total Apropriations to Date Current Budget Year 2017/18 2017/18 Adopted Budget Page 163 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Del Mar Park Restroom Replacement Summary Sheet (1 of 2) Description of Capital Item This project involves the demolition of existing restroom facilities, the installation of new plumbing, electrical, footings and concrete slab, and the purchase and installation of a pre-fabrication restroom facility. 2017/18 Adopted Budget Page 164 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Mike Wilcox, 805-772-6285 Functional Unit -$ -$ -$ -$ 350,000$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Percentage Complete 0%Mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total Design new facility -$ -$ -$ -$ 5,000$ 5,000$ -$ -$ -$ -$ 5,000$ 5,000$ -$ -$ -$ -$ 340,000$ 340,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 350,000$ 350,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 350,000$ 350,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total TBD -$ TBD -$ TBD -$ -$ -$ -$ -$ -$ -$ -$ Section 7 Section 8 Section 9 There has been some local interest in fund raising for this upgrade. Measure Q General Fund Park in lieu fund Total Comments/Impacts for Other Departments N/A Long Term Savings Better sanitation, security, and graffiti resistance Non-Secured Financing/Reimbursements Possible fundraising Demo old restroom Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Construct new restroom Type of Expenditure Staff Costs Method(s) of Financing Funding Source(s) This project is inline with Goal #3 - Improve Infrastructure and Public Spaces. To continue to provide the highest standard of cleanliness, security, accessibiliy, and aestetically pleasing fascilities for residents, tourist's, and visitor's. History and Current Status; Impact if Canceled or Delayed The existing facility is one of the oldest public restroom owned by the City. It is a 30-40 year old wood structure with termite and dry rot damage. Deferment of this project will demand continued major maintenance costs and concerns from the community drawn to this park by its' relative seclusion, the rolling landscape, and diversity of venues provided. Project Costs Activity Justification; Linkage to Council Goals, Plans, or other Objective Del Mar Park Restroom Replacement Detailed Sheet (2 of 2) Project Overview Department(s)Public Works Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Future Years $350,000 Type of Project Completion Date 2017/18 Adopted Budget Page 165 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures SR1/Main St @ SR41 Interchange Improvements Summary Sheet (1 of 2) Description of Capital Item Replace the existing 4-way stop signs by either constructing a modern roundabout design to eliminate the closely spaced adjoining intersections or install new coordinated traffic signals using the existing intersection configuration. 2017/18 Adopted Budget Page 166 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Non-Departmental Contact Rick Sauerwein, 805-772-6266 Functional Unit -$ 620,000$ 80,000$ 2,235,000$ 2,188,000$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q2 2020 Percentage Complete 0%Mandate State&Fed Greenhouse Gas reduction mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ 50,000$ -$ -$ 50,000$ -$ 600,000$ -$ -$ -$ 600,000$ -$ -$ -$ 2,185,000$ 2,188,000$ 4,373,000$ -$ 600,000$ 50,000$ 2,185,000$ 2,188,000$ 5,023,000$ -$ 20,000$ 30,000$ 50,000$ -$ 100,000$ -$ 620,000$ 80,000$ 2,235,000$ 2,188,000$ 5,123,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 20,000$ 30,000$ 50,000$ -$ 100,000$ -$ 100,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 190,860$ -$ -$ -$ -$ 190,860$ 300,000$ -$ -$ -$ -$ 300,000$ 113,000$ 168,333$ 123,000$ 1,890,000$ -$ 2,294,333$ -$ -$ -$ 590,000$ -$ 590,000$ -$ -$ -$ 1,000,000$ -$ 1,000,000$ -$ 20,000$ 300,000$ 427,807$ -$ 747,807$ 603,860$ 188,333$ 423,000$ 3,907,807$ -$ 5,123,000$ Section 7 Section 8 Section 9 Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 SR1/Main St @ SR41 Interchange Improvements Detailed Sheet (2 of 2) Project Overview Department(s)Street Infrastructure Staff Costs (In-Kind Match) Method(s) of Financing Funding Source(s) Future Years $5,123,000 Type of Project Completion Date Activity The SR1/Main St.@ SR41 Interchange Improvements will reduce congestion and decrease Greenhouse Gas emissions. The project contributes to two of Council's Adopted Goals by advancing Economic Sustainability and Improving Infrastructure. Level of Service is deteriorating steadily as congestion continues to grow with increased tourism in the City. This intersection serves as the principal gateway to Morro Bay from the Central Valley our primary source of tourists. It is also the only route to Morro Bay High School which generates significant vehicle, traffic during the morning, lunch and afternoon peak hours. Pedestrian and bicycle volumes have grown steadily at this intersection with the increased emphasis on Active Transportation modes History and Current Status; Impact if Canceled or Delayed Step 1&2 Intersection Control Evaluations have been completed and have identified the roundabout as the preferred technical solution. Caltrans and FHWA have authorized a Preliminary Assessment, Environmental Documentation and NEPA/CEQA work is in progress. City funded the ICE studies and SLOCOG has funded PA&ED and PE phases. ROW will be acquired as a condition of adjoining development. Failure to complete PA&ED, project design and ROW acquisition may result in loss of anticipated Federal Infrastructure construction funding. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Land acquisition SLOCOG expects the City to contribute 50% of construction cost. All transportation funding is allocated on a reimbursable basis. The $603,860 in Revenue Rec'd To Date Column is available at SLOCOG for reimbursement once expenditures are made. These funds are availabe due to underspending on prior year's projects. CMAQ RSTP-RSHA Minor A Self-Help Local Match Total Comments/Impacts for Other Departments All motorists that use this intersetion will achieve as yet unquantified annual savings through reduced fuel consumption. Long Term Savings N/A Non-Secured Financing/Reimbursements Traffic/Devlpmt Impact Fees Environmental & Design Construction 2017/18 Adopted Budget Page 167 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures This project provides pavement preservation, renovation & reconstruction, storm drainage work and associated ADA sidewalk to achieve and maintain an average Pavement Condition Index of 70. Pavement Management Plan Summary Sheet (1 of 2) Description of Capital Item 2017/18 Adopted Budget Page 168 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Non-Departmental Contact Rick Sauerwein, 805-772-6266 Functional Unit -$ 926,917$ 750,000$ 925,000$ 7,602,000$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern YES Q2 2018 Percentage Complete 0%Mandate State/Fed Greenhouse Gas reduction Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 40,000$ 42,000$ 44,100$ 145,976$ 272,076$ -$ 886,917$ 708,000$ 880,900$ 7,456,024$ 9,931,841$ -$ 926,917$ 750,000$ 925,000$ 7,602,000$ 10,203,917$ -$ -$ -$ -$ -$ -$ -$ 926,917$ 750,000$ 925,000$ 7,602,000$ 10,203,917$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 61,000$ 200,000$ 325,000$ 975,000$ 1,561,000$ -$ 530,000$ 550,000$ 600,000$ 1,362,000$ 3,042,000$ -$ 90,917$ -$ -$ -$ 90,917$ -$ 245,000$ -$ -$ 5,265,000$ 5,510,000$ -$ 926,917$ 750,000$ 925,000$ 7,602,000$ 10,203,917$ Section 7 Section 8 Section 9 Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Pavement Management Plan Detailed Sheet (2 of 2) Project Overview Department(s)Street Infrastructure Staff Costs (In-Kind Match) Total Method(s) of Financing Funding Source(s) Future Years $10,203,917 Type of Project Completion Date Activity City Council adopted the 2012 Pavement Management Plan which sets the goal to achieve a PCI of 70. Citizens regularly reinforce this need through Q-Alert notifications. The importance of this effort is reflected in the Councils goal to improve Infrastructure and Public Spaces. Project is currently limited by funding availability which is principally from Measure Q. These revenues alone generally only provide 25% of the $2M budget necessary to achieve our PCI goal of 70. History and Current Status; Impact if Canceled or Delayed Streets are selected annually based on current pavement assessment using the Street Saver software and public input obtained during the City’s annual Street Summit. Condition reassessment proceeding as work from the 2017 project is wrapping up. An updated 5-year project list has been prepared based on this update and the 2018 street list will be presented at the 2018 Street Summit. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure SLOCOG is reevaluating another voter intiative to pass the Self-Help initiative in 2018. Council will consider additional street funding mechnisms in 2018. All transportation funding is allocated on a reimbursable basis. Measure Q CalRecycle Grant USHA Total Comments/Impacts for Other Departments Street maintenance input is welcomed at anytime through the Q-Alert Public notification system and annually during the Street Summit Pavement Management Program review Long Term Savings All motorists will benefit from improved payment through reduce annual vehicle maintenance. Non-Secured Financing/Reimbursements SB1 - RMRA Environmental & Design Construction 2017/18 Adopted Budget Page 169 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures ADA Accessibility Improvements - CDBG SIDEWALKS Summary Sheet (1 of 2) Description of Capital Item This project fills gaps in the existing sidewalk system within the Downtown CBD and other key areas of business activity which inhibit access to disabled residents and tourists. The project contributes to two of the City Council's goals by advancing Economic Sustainability and Improving Infrastructure. 2017/18 Adopted Budget Page 170 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Non-Departmental Contact Rick Sauerwein, 805-772-6266 Functional Unit 257,624$ 353,283$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Annual Recurring Percentage Complete 0%Mandate Historic underfunding & natural deterioraton Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 257,624$ 347,769$ -$ -$ -$ 605,393$ -$ -$ -$ -$ -$ -$ 257,624$ 347,769$ -$ -$ -$ 605,393$ -$ 5,514$ -$ -$ -$ 5,514$ 257,624$ 353,283$ -$ -$ -$ 610,907$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 5,514$ -$ -$ -$ 5,514$ -$ 5,514$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 257,624$ 304,951$ -$ -$ -$ 562,575$ -$ 42,818$ -$ -$ -$ 42,818$ -$ 5,514$ -$ -$ -$ 5,514$ 257,624$ 353,283$ -$ -$ -$ 610,907$ Section 7 Section 8 Section 9 If additional Local Funds are not budgeted, work will be adjusted based on the actual bid prices received. Local Funds (Impact Fees) GF - Com Dev Opt Budget Total Comments/Impacts for Other Departments N/A Long Term Savings Construction N/A Non-Secured Financing/Reimbursements Activity CDBG Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs (In-Kind Match) Total Method(s) of Financing Funding Source(s) ADA Accessibility Improvements -CDBG SIDEWALKS Detailed Sheet (2 of 2) Project Overview Department(s)Street Infrastructure Budget Year 2018/19 Gaps in the existing sidewalk system within the Downtown CBD and other key areas of business activity inhibit access to disabled residents and tourists. The project contributes to two of Council's Goals by advancing Economic Sustainability and Improving Infrastructure History and Current Status; Impact if Canceled or Delayed This work has been proceeding in a phased approach as funds become available since 2013. Successful past performance has resulted in the reallocation of unobligated funds from other cities to augment the 2017/18 effort. Completion of this work no later than December 30, is a required condition of the subreceipient agreement. Project Costs Budget Year 2019/20 Future Years $610,907 Type of Project Completion Date Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs 2017/18 Adopted Budget Page 171 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Morro Bay Transit Replacement Vehicle Summary Sheet (1 of 2) Description of Capital Item This project involves the purchase of a replacement vehicle for Morro Bay Transit. 2017/18 Adopted Budget Page 172 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Janeen Burlingame, 805-772-6263 Functional Unit -$ 83,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q4 2018 Percentage Complete 0%Mandate No State or Federal mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 83,000$ -$ -$ 83,000$ -$ 83,000$ -$ -$ 83,000$ -$ -$ -$ -$ -$ -$ -$ 83,000$ -$ -$ -$ 83,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 71,280$ 71,280$ 5,737$ 5,737$ 5,983$ 5,983$ -$ 83,000$ -$ -$ -$ 83,000$ Section 7 Section 8 Section 9 Vehicle Acquisition The PTMISEA funding is paid to the City prior to the project being completed. The RTF grant is a reimbursement grant so the City would pay upfront and then submit a reimbursement request for the awarded grant amount due to the City. PTMISEA Funding FY 17/18 LTF Transit Allocation Total Comments/Impacts for Other Departments Vehicle to be purchased through the CalACT/MBTA Purchasing Cooperative (piggyback). Local match funding for RTF grant (301-5261-3390) to come from a combination of PTMISEA funding (301-5261-3390) and FY17/18 LTF Transit allocation. Long Term Savings Maintenance and fuels cost savings will be realized. Non-Secured Financing/Reimbursements Rural Transit Fund Grant Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $83,000 Type of Project Completion Date Activity This aging vehicle is beyond the Useful Life Criteria set by the Federal Transit Administration. History and Current Status; Impact if Canceled or Delayed The existing Morro Bay Transit vehicle is from 2010 . The Federal Transit Administration's Useful Life Criteria for this vehicle type if 4 years or 100,000 miles. The vehicle to be replaced will be beyond the FTA criteria. Additionally, vehicle maintenance and fueling costs are higher due to the age of the vehicle. Impact if canceled or delayed: maintenance and fueling costs will continue to rise and the potential for breakdown during service day will increase. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Morro Bay Transit Replacement Vehicle Detailed Sheet (2 of 2) Project Overview Department(s)Transit 2017/18 Adopted Budget Page 173 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 This will be a written document. No picture. Maps/Charts/Tables/Pictures Short Range Transit Plan Summary Sheet (1 of 2) Description of Capital Item This project involves hiring a consultant to develop a Short Range Transit Plan for the City's Morro Bay Transit and Trolley services. 2017/18 Adopted Budget Page 174 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Janeen Burlingame, 805-772-6263 Functional Unit -$ 45,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q4 2018 Percentage Complete 0%Mandate State mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 45,000$ -$ -$ -$ 45,000$ -$ 45,000$ -$ -$ -$ 45,000$ -$ -$ -$ -$ -$ -$ -$ 45,000$ -$ -$ -$ 45,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 2,454$ -$ -$ -$ 2,454$ -$ 42,546$ -$ -$ -$ 42,546$ -$ 45,000$ -$ -$ -$ 45,000$ Section 7 Section 8 Section 9 Consultant Contract N/A Programmed Use of Fund Balance Total Comments/Impacts for Other Departments No general funds used for this project. Project to be funded with FY17/18 LTF Transit funds and Programmed Use of Fund Balance (301-5261-3996). Long Term Savings Completion of the plan may yield alternatives to implement that could see operational cost savings. Non-Secured Financing/Reimbursements FY 17/18 LTF Transit Allocation Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $45,000 Type of Project Completion Date Activity Per State Transportation Development Act law, a Short Range Transit Plan is a requirment of receiving TDA funds for the City's transit services. History and Current Status; Impact if Canceled or Delayed The current SRTP was completed in 2007. SLOCOG tried to secure transit grant funding to update the plan several years ago but was unsuccessful. The Transit Division currently has a Fund Balance to be used for the project. Impact if cancelled or delayed: the City would be out of compliance with TDA law. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Short Range Transit Plan Detailed Sheet (2 of 2) Project Overview Department(s)Transit 2017/18 Adopted Budget Page 175 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Nutmeg Tank Replacement Summary Sheet (1 of 2) Description of Capital Item This project will acquire ownership of the existing site and replace the deteriorated existing 140,000 gallon water tank with a 1.3 million gallon pre-stressed concrete tank to provide essential firefighting capacity. 2017/18 Adopted Budget Page 176 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rick Sauerwein, 805-772-6266 Functional Unit 26,537$ -$ 3,085,000$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q1 2018 Percentage Complete 15%Mandate No State or Federal mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ 75,000$ -$ -$ 75,000$ -$ -$ 95,000$ -$ -$ 95,000$ -$ -$ 2,860,000$ -$ -$ 2,860,000$ -$ -$ 3,030,000$ -$ -$ 3,030,000$ 26,537$ -$ 55,000$ -$ -$ 81,537$ 26,537$ -$ 3,085,000$ -$ -$ 3,111,537$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 26,537$ -$ 55,000$ -$ -$ 81,537$ 26,537$ -$ 55,000$ -$ -$ 81,537$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ 3,030,000$ -$ -$ 3,030,000$ 26,537$ -$ 55,000$ -$ -$ 81,537$ -$ -$ -$ -$ -$ -$ 26,537$ -$ 3,085,000$ -$ -$ 3,111,537$ Section 7 Section 8 Section 9 Some maintenance savings may be realized by replacing this aging water tank. Non-Secured Financing/Reimbursements New or Additional Impact on Operating Budget If Water Accumulation Fund Reserves are not sufficient to fund the entire project, anticpate applying for an i-Bank loan or USDA financing. No reimbursement financing for this project Water Operating Fund Total Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Water Accum Fund Activity Land acquisition Comments/Impacts for Other Departments N/A Long Term Savings Environmental & Design Construction Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. Justification; Linkage to Council Goals, Plans, or other Objective The 1997 Master Water Plan Update identified the need for an additional 1.19MG of storage capacity at the Nutmeg site to accommodate the planned build out of the City. This is necessitated by the reserve fire storage requirement of California Fire Code. This project supports Council's Adopted Goal to improve Infrastructure and Public Spaces. History and Current Status; Impact if Canceled or Delayed Solicitation underway for consultant team to complete environmental, permitting and engineering design package. The existing tank is exposed to severe environmental conditions and is nearing the end of its useful life so further delay is not recommended. Project funding is provided by Water Reserve Fund. Project Costs Nutmeg Tank Replacement Detailed Sheet (2 of 2) Project Overview Department(s)Water Capital Improvement Budget Year 2019/20 Future Years $3,111,537 Type of Project Completion Date Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 2017/18 Adopted Budget Page 177 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Joe Meuller to send me a picture. Maps/Charts/Tables/Pictures One Water Plan Summary Sheet (1 of 2) Description of Capital Item This project involves hiring a consultant to develop an intregrated water resources planning document, inclusive of all City water resources. 2017/18 Adopted Budget Page 178 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rob Livick, PW Director Functional Unit -$ 711,150$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q4 2018 Percentage Complete 0%Mandate Council Goal Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 691,150$ -$ -$ -$ 691,150$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 691,150$ -$ -$ -$ 691,150$ -$ 20,000$ -$ -$ -$ 20,000$ -$ 711,150$ -$ -$ -$ 711,150$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total Engr Consulting Services -$ 10,000$ -$ -$ -$ 10,000$ -$ 10,000$ -$ -$ -$ 10,000$ -$ 20,000$ -$ -$ -$ 20,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 345,575$ -$ -$ -$ 345,575$ 345,575$ -$ -$ -$ 345,575$ 10,000$ -$ -$ -$ 10,000$ 10,000$ -$ -$ -$ 10,000$ -$ 711,150$ -$ -$ -$ 711,150$ Section 7 Section 8 Section 9 Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 One Water Plan Detailed Sheet (2 of 2) Project Overview Department(s)Water/SewerEnterprise & General Funds SD Consulting Services Total Method(s) of Financing Funding Source(s) Future Years $711,150 Type of Project Completion Date Activity Meets FY17/18 City Council Goal #2, Objective g: a OneWater plan for the City that considers all water resources - from stormwater to groundwater to wastewater - as a single water resource. History and Current Status; Impact if Canceled or Delayed City Council approved the selection of Carollo Engineers as the consultant to prepare the OneWater Planning document at their 9 May 2017 City Council Meeting. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Consultant Contract N/A Sewer Accum Fund GF-PW Opting Budget - 6105 GF-5235 Opting Budget - 6105 Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Water Accum Fund 2017/18 Adopted Budget Page 179 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures State Park Waterline Interconnect Summary Sheet (1 of 2) Description of Capital Item This project will connect dead end water lines from Arbutus Ave to Fairview Ave. 2017/18 Adopted Budget Page 180 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rick Sauerwein, 805-772-6266 Functional Unit 6,150$ 117,500$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q1 2018 Percentage Complete 20%Mandate No State or Federal mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 15,500$ -$ -$ -$ 15,500$ 6,150$ -$ -$ -$ -$ 6,150$ -$ 85,000$ -$ -$ -$ 85,000$ 6,150$ 100,500$ -$ -$ -$ 106,650$ -$ 17,000$ -$ -$ -$ 17,000$ 6,150$ 117,500$ -$ -$ -$ 123,650$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 17,000$ -$ -$ -$ 17,000$ -$ 17,000$ -$ -$ -$ 17,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 106,650$ -$ -$ -$ 106,650$ -$ 17,000$ -$ -$ -$ 17,000$ -$ -$ -$ -$ -$ -$ -$ 123,650$ -$ -$ -$ 123,650$ Section 7 Section 8 Section 9 Type of Expenditure Staff Costs Total N/A GF PW Operating Budget Total Comments/Impacts for Other Departments N/A Long Term Savings Method(s) of Financing Funding Source(s) Elimination of unecessary recurring maintenance will provide some ccost savings. Non-Secured Financing/Reimbursements Water Capital Reserves Completion Date Justification; Linkage to Council Goals, Plans, or other Objective New or Additional Impact on Operating Budget These dead end lines result in reduced water quality and excessive maintenance to prevent water stagnation. This project supports Council's Adopted Goal to improve Infrastructure and Public Spaces. History and Current Status; Impact if Canceled or Delayed Staff Design. Environmental Documentation was completed in 2015 and may require update if this work is delayed further. Project Costs Land acquisition Activity Environmental & Design Construction Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Future Years State Park Waterline Interconnect Detailed Sheet (2 of 2) Project Overview Department(s)Water Capital Improvement $123,650 Type of Project Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 2017/18 Adopted Budget Page 181 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Chorro Stream Gauge Summary Sheet (1 of 2) Description of Capital Item Install two concrete weirs and two low-flow stream gauges along with supporting telemetry equipment at two locations in Chorro Creek 2017/18 Adopted Budget Page 182 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rick Sauerwein, 805-772-6266 Functional Unit 74,140$ 12,000$ 20,000$ -$ 595,000$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q1 2019 Percentage Complete 15%Mandate No State or Federal mandate Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 74,140$ -$ -$ -$ 150,000$ 224,140$ -$ -$ -$ -$ 445,000$ 445,000$ 74,140$ -$ -$ -$ 595,000$ 669,140$ -$ 12,000$ 20,000$ -$ -$ 32,000$ 74,140$ 12,000$ 20,000$ -$ 595,000$ 701,140$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 12,000$ 20,000$ 32,000$ -$ 12,000$ 20,000$ -$ -$ 32,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 74,140$ -$ 20,000$ -$ 607,000$ 701,140$ 74,140$ -$ 20,000$ -$ 607,000$ 701,140$ Section 7 Section 8 Section 9 N/A Total Comments/Impacts for Other Departments N/A Long Term Savings Environmental & Design N/A Non-Secured Financing/Reimbursements Activity Water Accum Fund Construction Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Method(s) of Financing Funding Source(s) Chorro Stream Gauge Detailed Sheet (2 of 2) Project Overview Department(s)Water Capital Improvement Budget Year 2018/19 This project is required by the State Water Resource Control Board as an essential condition of the City’s compliance plan to perfect our appropriated water rights permits (Chorro Creek Permit Nos. 20866, 20867, and 20868) and to support operation of existing City-owned potable water well fields. History and Current Status; Impact if Canceled or Delayed Mitigated Negative Declaration has been completed, but the City’s Planning Commission and County Permitting cannot proceed further until we can respond to NMFS concerns regarding fish passage and obtain property owner permission to install gague on San Luis Coastal Resource Conservation District property. This requires the approval from the USDA/NRCS who hold a conservation easement. Currently reassigning a consultant to continue coordinating National Marine Fisheries Service (NMFS)comments through the Army Corps of Engineers. Corps has determined that existing cultural studies provide sufficient data to finish our Section 106 Cultural Resource determination. Project Costs Budget Year 2019/20 Future Years $701,140 Type of Project Completion Date Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs 2017/18 Adopted Budget Page 183 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Water (Distribution System) Outside Emergency Repair Summary Sheet (1 of 2) Description of Capital Item Emergency Repair work in the water distribution system city wide, provided by contracted work. 2017/18 Adopted Budget Page 184 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Water Utilities Contact Joe Mueller, 916-826-3912 Functional Unit -$ 100,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern N/A Percentage Complete 0%Mandate Maintain public utility services Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 100,000$ -$ -$ -$ 100,000$ -$ 100,000$ -$ -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ 100,000$ -$ -$ -$ 100,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 100,000$ -$ -$ 100,000$ -$ -$ 100,000$ -$ -$ -$ 100,000$ Section 7 Section 8 Section 9 Outside Services N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Water Revenue Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $100,000 Type of Project Completion Date Activity Contingency for immediate response if required for public safety purposes. History and Current Status; Impact if Canceled or Delayed Public safety concerns. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Water (Distribution System) Outside Emergency Repair Detailed Sheet (2 of 2) Project Overview Department(s)Water Fund 2017/18 Adopted Budget Page 185 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Water (Distribution System) Storage Tank Exterior Maintenance Summary Sheet (1 of 2) Description of Capital Item Required Exterior Tank Maintenance 2017/18 Adopted Budget Page 186 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Water Utilities Contact Joe Mueller, 916-826-3912 Functional Unit -$ 80,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern 2018 Percentage Complete 0%Mandate Maintaining safe public utilities. Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 80,000$ -$ -$ -$ 80,000$ -$ -$ -$ -$ -$ -$ -$ 80,000$ 80,000$ -$ -$ -$ 80,000$ -$ -$ -$ 80,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 80,000$ 80,000$ -$ -$ 80,000$ -$ -$ -$ 80,000$ Section 7 Section 8 Section 9 Outside Services N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Water Revenue Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Total Method(s) of Financing Funding Source(s) Future Years $80,000 Type of Project Completion Date Activity Meets the adopted Council Goal of maintaining infrastructure. History and Current Status; Impact if Canceled or Delayed Deferred maintenance is starting to deteriorate the structure of the tanks. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Water (Distribution System) Storage Tank Exterior Coating Detailed Sheet (2 of 2) Project Overview Department(s)Water Fund 2017/18 Adopted Budget Page 187 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Water Treatment (Desal)Building Exterior Replacement Summary Sheet (1 of 2) Description of Capital Item Repair and replacement of the exterior building material on the water treatment facility (desalination plant) 2017/18 Adopted Budget Page 188 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Water Utilities Contact Joe Mueller, 916-826-3912 Functional Unit -$ - $100,000$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern 2019 Percentage Complete 0%Mandate Maintaining safe public utilities Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ 100,000$ -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ -$ -$ 100,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total - $100,000$ -$ -$ 100,000$ -$ -$ -$ 100,000$ Section 7 Section 8 Section 9 Contracted Services N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Water Revenue Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $100,000 Type of Project Completion Date Activity The metal building used to house the water treatment facility has rusted and deteriorated to the point of needing replacement in order to protect the expensive and mission critical equipment inside. History and Current Status; Impact if Canceled or Delayed Protection of mission critical water treatment equipment. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Water Treatment (Desal)Building Exterior Replacement Detailed Sheet (2 of 2) Project Overview Department(s)Water Fund 100,000 2017/18 Adopted Budget Page 189 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Kings Water Storage Tank Interior Cleaning Summary Sheet (1 of 2) Description of Capital Item Required water storage tank cleaning and maintenance. 2017/18 Adopted Budget Page 190 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Water Utilities Contact Joe Mueller, 916-826-3912 Functional Unit -$ -$ 50,000$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern 2019 Percentage Complete 0%Mandate Maintaining safe public utilities Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 0 50,000$ -$ -$ 50,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 50,000$ -$ -$ 50,000$ -$ -$ -$ -$ -$ -$ -$ -$ 50,000$ -$ -$ 50,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 0 50,000$ -$ -$ 50,000$ -$ -$ -$ 50,000$ -$ -$ 50,000$ Section 7 Section 8 Section 9 Outside Services N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Water Revenue Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs (In-Kind Match) Total Method(s) of Financing Funding Source(s) Future Years $50,000 Type of Project Completion Date Activity Meets the adopted Council Goal of maintaining infrastructure. History and Current Status; Impact if Canceled or Delayed Periodic interior tank cleaning is required to provide proper operation of the water system Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Kings Water Storage Tank Interior Cleaning Detailed Sheet (2 of 2) Project Overview Department(s)Water Fund 2017/18 Adopted Budget Page 191 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Embarcadero Sewer Rehabilitation Summary Sheet (1 of 2) Description of Capital Item This project will rehabilitate existing sewer lines from 405-901 Embarcadero with Cured-in-place pipe (CIPP) and restore thirty- four lateral connections 2017/18 Adopted Budget Page 192 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rick Sauerwein, 805-772-6266 Functional Unit -$ 80,000$ 615,600$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q1 2018 Percentage Complete 20%Mandate Maintain safe public utilities Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ 65,000$ 65,000$ -$ 590,600$ 590,600$ -$ 65,000$ 590,600$ -$ -$ 655,600$ -$ 15,000$ 25,000$ -$ -$ 40,000$ -$ 80,000$ 615,600$ -$ -$ 695,600$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 15,000$ 25,000$ 40,000$ -$ 15,000$ 25,000$ -$ -$ 40,000$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 80,000$ 301,000$ 381,000$ 314,600$ 314,600$ -$ -$ 80,000$ 615,600$ -$ -$ 695,600$ Section 7 Section 8 Section 9 If Water Capital Reserves are not sufficient to fund the entire project anticpate using an i-Bank loan or USDA financing. No reimbursement financing for this project Leaseholder Contributions Total Comments/Impacts for Other Departments Project requires substantial coordination with Embarcadero business owners Long Term Savings Land Acquisition Elimination of unecessary recurring maintenance by replacing aging infrastructure. Non-Secured Financing/Reimbursements Activity Sewer Accum Fund Environmental & Design Construction Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Method(s) of Financing Funding Source(s) Embarcadero Sewer Rehabilitation Detailed Sheet (2 of 2) Project Overview Department(s)Sewer Capital Improvement Budget Year 2018/19 The present condition of this sewer segment and its location adjoining Morro Bay results in significant Inflow& Infiltration into the waste water collection system. The resulting high salt concentrations contribute significantly to WWTP plant upsets. This project supports the Council's Adopted Goal to improve Infrastructure and Public Spaces. History and Current Status; Impact if Canceled or Delayed Staff Design is underway. Project Costs Budget Year 2019/20 Future Years $695,600 Type of Project Completion Date Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs 2017/18 Adopted Budget Page 193 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Sewer (Collections System) Outside Emergency Repair Summary Sheet (1 of 2) Description of Capital Item Emergency Repair work in the collections system city wide, performed by others. 2017/18 Adopted Budget Page 194 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Wastewater Collections Contact Joe Mueller, 916-826-3912 Functional Unit -$ 100,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern N/A Percentage Complete 0%Mandate Maintaining safe public utilities Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 100,000$ -$ -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ 100,000$ -$ -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ 100,000$ -$ -$ -$ 100,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 100,000$ 100,000$ -$ -$ 100,000$ -$ -$ -$ 100,000$ Section 7 Section 8 Section 9 Contracted Services N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Sewer Revenue Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $100,000 Type of Project Completion Date Activity Contingency for immediate response if required for public safety History and Current Status; Impact if Canceled or Delayed Public safety concerns if sufficient funding is not made available in the event of an emergency. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Sewer (Collections System) Outside Emergency Repair Detailed Sheet (2 of 2) Project Overview Department(s)Sewer Fund 2017/18 Adopted Budget Page 195 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Sewer (Collections) Service Truck Replacement Summary Sheet (1 of 2) Description of Capital Item Replacement of the Collection System utility service truck. 2017/18 Adopted Budget Page 196 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Wastewater Collections Contact Joe Mueller, 916-826-3912 Functional Unit -$ 75,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern 2018 Percentage Complete 0%Mandate Maintaining safe public utilities Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 75,000$ -$ -$ -$ 75,000$ -$ -$ -$ -$ -$ -$ -$ 75,000$ 75,000$ -$ -$ -$ 75,000$ -$ -$ -$ 75,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 75,000$ 75,000$ -$ -$ 75,000$ -$ -$ -$ 75,000$ Section 7 Section 8 Section 9 Vehicle Acquisition N/A Total Comments/Impacts for Other Departments Vehicle to be purchased through the CalACT/MBTA Purchasing Cooperative (piggyback). Long Term Savings Maintenance and fuels cost savings will be realized. Non-Secured Financing/Reimbursements Sewer Eq Replacement Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $75,000 Type of Project Completion Date Activity Previous truck was red tagged (out of commission) for safety reasons at which time it was determined that it could no longer be repaired and maintained in a safe condition. History and Current Status; Impact if Canceled or Delayed Currently the collections department is operating at reduced capacity for this truck has been removed from service. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Sewer (Collections) Service Truck Replacement Detailed Sheet (2 of 2) Project Overview Department(s)Sewer Fund 2017/18 Adopted Budget Page 197 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures Sewer (Collections) Vactor Truck Replacement Summary Sheet (1 of 2) Description of Capital Item Replacement of the aging Collection System Vactor sewer cleaning and maintenance truck. 2017/18 Adopted Budget Page 198 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Wastewater Collections Contact Joe Mueller, 916-826-3912 Functional Unit -$ 540,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern 2,018 Percentage Complete 0%Mandate Maintaining safe public utilities Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 540,000$ -$ -$ -$ 540,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 540,000$ -$ -$ 540,000$ -$ -$ -$ -$ -$ -$ -$ 540,000$ -$ -$ -$ 540,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 540,000$ 540,000$ -$ -$ 540,000$ -$ -$ -$ 540,000$ Section 7 Section 8 Section 9 Vehicle Acquisition N/A Total Comments/Impacts for Other Departments Vehicle to be purchased through the CalACT/MBTA Purchasing Cooperative (piggyback). Long Term Savings Maintenance, testing and fuels cost savings will be realized. Non-Secured Financing/Reimbursements Sewer Eq Replacement Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $540,000 Type of Project Completion Date Activity This aging equipment is approaching its useful life, the engine's used to run the equipment no longer meets the air board requirements and are required to be upgraded or replaced. History and Current Status; Impact if Canceled or Delayed Due to the new air board requirements and the age of this equipment it is becoming non cost effective to maintain or upgrade this equipment. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Sewer (Collections) Vactor Truck Replacement Detailed Sheet (2 of 2) Project Overview Department(s)Sewer Fund 2017/18 Adopted Budget Page 199 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures New Water Reclamation Facility Summary Sheet (1 of 2) Description of Capital Item This project involves replacement of the existing 64 year old Wastewater Treatment Plant with a new (phased water reclamation facility). As of April 25, 2017 direction from council is to look at a phased project and to analyize alternative treatment scenarios. The estimated construction costs for fiuture years will come out of Council direction in Summer 2017. 2017/18 Adopted Budget Page 200 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Public Works Contact Rob Livick Functional Unit 3,387,755$ 4,261,204$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern Q1 FY2021/2022 Percentage Complete 0%Mandate Comply with anticipated renewal of NPDES permit Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 1,138,560$ 1,357,204$ TBD TBD TBD 2,495,764$ 1,958,849$ 2,095,000$ TBD TBD TBD 4,053,849$ -$ 372,000$ TBD TBD TBD 372,000$ 25,000$ 337,000$ TBD TBD TBD 362,000$ -$ -$ TBD TBD TBD -$ 3,122,409$ 4,161,204$ -$ -$ -$ 7,283,613$ 265,346$ 100,000$ -$ -$ -$ 365,346$ 3,387,755$ 4,261,204$ -$ -$ -$ 7,648,959$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 265,346$ 100,000$ -$ -$ -$ 365,346$ 265,346$ 100,000$ -$ -$ -$ 365,346$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 2,960,048$ 4,161,204$ TBD TBD TBD 7,121,252$ Sewer Operating Fund 265,346$ 100,000$ TBD TBD TBD 365,346$ 75,000$ -$ TBD TBD TBD 75,000$ 87,361$ -$ TBD TBD TBD 87,361$ -$ -$ TBD TBD TBD -$ -$ 3,387,755$ 4,261,204$ -$ -$ -$ 7,648,959$ Section 7 Section 8 Section 9 Construction Land Acquisition To reduce the cost of long-term interest, the city would first look to the Sewer Accum Fund to pay for the planning expenditures budgeted. If the sewer accum fund would be reduced below $650K, the State Water Resources interim loan (SRF) has been approved and the city could seek reimbursement for invoices paid. SRF Approved Loan Proceeds (see comments in Section 9) Recycled Water Planning Grant SEP from CA Men's Colony Total Comments/Impacts for Other Departments N/A Long Term Savings Program Management N/A Non-Secured Financing/Reimbursements Activity Sewer Accum Fund Design Environmental/Permitting Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Method(s) of Financing Funding Source(s) New Water Reclamation Facility (WRF) Detailed Sheet (2 of 2) Project Overview Department(s)Sewer Fund A/C # 321-8312 Budget Year 2018/19 This aging facility is near the end of life, The Council Adopted Goal #2 to "Complete WRF and OneWater Program". History and Current Status; Impact if Canceled or Delayed With the denial of the permit for the WWTP project in 2013 in its current location, the City has embarked on a process for a new WRF. See http://morrobaywrf.com/ for complete information. Project Costs Budget Year 2019/20 Future Years $7,648,959 Type of Project Completion Date Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs 2017/18 Adopted Budget Page 201 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Waiting for Pictures from Lori Stilts Maps/Charts/Tables/Pictures Beach Street Slips - North Summary Sheet (1 of 2) Description of Capital Item Replace the 25+ year old south section of the Beach Street Slips 2017/18 Adopted Budget Page 202 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Harbor Contact Eric Endersby Functional Unit -$ 340,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern 2018 Percentage Complete 0%Mandate No mandates Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 340,000$ -$ -$ -$ 340,000$ -$ -$ -$ -$ -$ -$ -$ 340,000$ -$ -$ -$ 340,000$ -$ -$ -$ -$ -$ -$ -$ 340,000$ -$ -$ -$ 340,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 340,000$ 340,000$ -$ -$ 340,000$ -$ -$ -$ 340,000$ Section 7 Section 8 Section 9 Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Beach Street Slips - North Detailed Sheet (2 of 2) Project Overview Department(s)Harbor Enterprise Fund Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $340,000 Type of Project Completion Date Activity Meets Council Adopted Goal 3 Improve infrastructure and public spaces -general History and Current Status; Impact if Canceled or Delayed 25+ year old slip, in need of replacement. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Construction N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Harbor Accum Fund 2017/18 Adopted Budget Page 203 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 No Pictures were submitted by Eric Maps/Charts/Tables/Pictures Beach Street Slips - South Summary Sheet (1 of 2) Description of Capital Item Replace the 25+ year old south section of the Beach Street Slips 2017/18 Adopted Budget Page 204 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Harbor Contact Eric Endersby Functional Unit -$ 225,000$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern 2018 Percentage Complete 0%Mandate No mandates Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 225,000$ -$ -$ -$ 225,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 225,000$ -$ -$ -$ 225,000$ -$ -$ -$ -$ -$ -$ -$ 225,000$ -$ -$ -$ 225,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 225,000$ 225,000$ -$ -$ 225,000$ -$ -$ -$ 225,000$ Section 7 Section 8 Section 9 Construction N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Harbor Accum Fund Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $225,000 Type of Project Completion Date Activity Goal 3 Improve infrastructure and public spaces -general. History and Current Status; Impact if Canceled or Delayed 25+ year old slip, in need of replacement. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Beach Street Slips - South Detailed Sheet (2 of 2) Project Overview Department(s)Harbor Enterprise Fund 2017/18 Adopted Budget Page 205 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Waiting for Pictures from Lori Stilts Maps/Charts/Tables/Pictures Boat Repair/Storage Yard - Triangle Lot Summary Sheet (1 of 2) Description of Capital Item Build new boatyard/marine services facility in the Triangle Lot area. 2017/18 Adopted Budget Page 206 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Harbor Contact Eric Endersby Functional Unit -$ 55,576$ -$ -$ -$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern TBD Percentage Complete 0%Mandate None Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ 55,576$ -$ -$ -$ 55,576$ -$ -$ -$ -$ -$ -$ -$ 55,576$ -$ -$ -$ 55,576$ -$ -$ -$ -$ -$ -$ -$ 55,576$ -$ -$ -$ 55,576$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 55,576$ 55,576$ -$ -$ 55,576$ -$ -$ -$ 55,576$ Section 7 Section 8 Section 9 Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Boat Repair/Storage Yard - Triangle Lot Detailed Sheet (2 of 2) Project Overview Department(s)Harbor Enterprise Fund Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $55,576 Type of Project Completion Date Activity Council Adopted Goal 3.d. Requires Council re-affirmation of conducting financial feasibility study after RFQ process results. History and Current Status; Impact if Canceled or Delayed N/A Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Construction N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Harbor Accum Fund 2017/18 Adopted Budget Page 207 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Waiting for Pictures from Lori Stilts Maps/Charts/Tables/Pictures Harbor Ice Machine Maintenance Summary Sheet (1 of 2) Description of Capital Item Annual capital maintenance needs for the City-owned and Santa Monica Seafood-operated ice machine. 2017/18 Adopted Budget Page 208 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Harbor Contact Eric Endersby Functional Unit 78,139$ 10,000$ 35,000$ 35,000$ 105,000$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern N/A Percentage Complete 0%Mandate None Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 78,139$ 10,000$ 35,000$ 35,000$ 105,000$ 263,139$ -$ -$ -$ -$ 78,139$ 10,000$ 35,000$ 35,000$ 105,000$ 263,139$ -$ -$ -$ -$ -$ -$ 78,139$ 10,000$ 35,000$ 35,000$ 105,000$ 263,139$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 20,000$ 10,000$ 10,000$ 10,000$ 30,000$ 80,000$ 58,139$ 25,000$ 25,000$ 75,000$ 183,139$ -$ 78,139$ 10,000$ 35,000$ 35,000$ 105,000$ 263,139$ Section 7 Section 8 Section 9 Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 Harbor Ice Machine Maintenance Detailed Sheet (2 of 2) Project Overview Department(s)Harbor Enterprise Fund Method(s) of Financing Funding Source(s) Future Years $263,139 Type of Project Completion Date Activity Critical infrastructure for the commercial fishing industry. History and Current Status; Impact if Canceled or Delayed Annual needs accomplished with a combination of Santa Monica Seafood, City and Cable Committee grant funding. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Contracted Services N/A Grants Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Harbor Accum Fund 2017/18 Adopted Budget Page 209 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Section 2 Maps/Charts/Tables/Pictures South T-Pier Renovations Summary Sheet (1 of 2) Description of Capital Item Current FY17 and proposed FY18 amounts to complete a portion of recommended urgent and other repairs from 2016 inspection and engineering assessment of the pier. FY20 amount to accomplish total reconstruction of the base leg of the pier (preliminary estimate only). 2017/18 Adopted Budget Page 210 CITY OF MORRO BAY CAPITAL PROJECT SHEET FOR THE 2017/18 FISCAL YEAR Section 1 Harbor Contact Eric Endersby Functional Unit 20,000$ 55,000$ -$ -$ 250,000$ New Replacement Land/ROW Acq. Req'd Expansion Renovation Safety Concern TBD Percentage Complete 0%Mandate None Section 2 Section 3 Section 4 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 20,000$ 55,000$ 250,000$ 325,000$ -$ -$ 20,000$ 55,000$ -$ -$ 250,000$ 325,000$ -$ -$ -$ -$ -$ -$ 20,000$ 55,000$ -$ -$ 250,000$ 325,000$ Section 5 Appropriations to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Section 6 Revenue Rec'd to Date FY 2017/18 FY 2018/19 FY 2019/20 Future Years Total 20,000$ 55,000$ -$ -$ 250,000$ 325,000$ -$ 20,000$ 55,000$ -$ -$ 250,000$ 325,000$ Section 7 Section 8 Section 9 Current Budget Year 2017/18 Unappropriated Subsequent Year Needs Budget Year 2018/19 Budget Year 2019/20 South T-Pier Renovations Detailed Sheet (2 of 2) Project Overview Department(s)Harbor Enterprise Fund Staff Costs Total Method(s) of Financing Funding Source(s) Future Years $325,000 Type of Project Completion Date Activity Council Adopted Goal 3 Improve Infrastructure and Public Spaces - general. History and Current Status; Impact if Canceled or Delayed Pier is load-limited due to current condition of the base leg of pier. Project Costs Justification; Linkage to Council Goals, Plans, or other Objective Total Project Cost Total Apropriations to Date Total Capital Cost Est. Total Operating Cost Est. Total Expenditures Est. New or Additional Impact on Operating Budget Type of Expenditure Contracted Services N/A Total Comments/Impacts for Other Departments N/A Long Term Savings N/A Non-Secured Financing/Reimbursements Harbor Accum Fund 2017/18 Adopted Budget Page 211 CITY OF MORRO BAY GENERAL FUND FACILITY MAINTENANCE FUND SCHEDULE OF DEFERRED INFRASTRUCTURE MAINTENANCE 052-6150 OVERALL PRIORITY SITE PRIORITY SITE WORK DESCRIPTION QUARTER ACTUAL COST COMMENTS AS OF THE 2016/17 FISCAL YEAR DONE A Community Center Tent for termites Complete $12,970 DONE A Public Works Tent for termites Complete 3,952 DONE A Tidelands Restroom Epoxy seal the restroom floor. Complete 4,800 DONE A Bayshore Bluffs Epoxy seal the restroom floor Complete 1,900 DONE A Lila Keiser Restroom Epoxy seal the restroom floor Complete 3,600 DONE A Rock restroom Install lift station with solids grinder pump Complete 9,162 By staff DONE A Veterans Memorial Building Replace gutters Complete 2,182 DONE A Tidelands Restroom Replace gutters Complete 792 DONE Added City Hall Annex Replace gutters Complete 391 DONE Added Grandmas Waffles Repair gutters Complete 385 DONE Added City Hall Replace roof Complete 17,650 DONE Added Community Center Repair dry rot and parapet cap Complete 14,564 DONE Added Teen Center Remove skate park Complete 7,945 By staff $80,293 Estimate 1ACentennial Parkway Raplace handrail for stairs WIP 5,000 Contract out for signature 1AOlive Street Stair Raplace handrail for stairs WIP 5,000 Contract out for signature 1ACity Hall Install new building entry sign with City seal 1 100 WIP-Statewide Traffic Safety 1ACommunity Center Install new building entry sign with City seal 1 100 WIP-Statewide Traffic Safety 1APublic Works Install new building entry sign with City seal 1 100 WIP-Statewide Traffic Safety 1AHarbor Office Install new building entry sign with City seal 1 100 WIP-Statewide Traffic Safety 1ACity Hall Annex Install new building entry sign with City seal 1 100 WIP-Statewide Traffic Safety 1AResource and Outreach Install new building entry sign with City seal 1 100 WIP-Statewide Traffic Safety 1 A City Hall Annex Repair exterior stucco, facia, and paint building 1 500 By staff 1ALila Keiser Restroom Repair facia and repaint inside and out 1 500 By staff 1ATidelands Restroom Repaint inside and out 1 500 By staff 2BPublic Works Replace carpet 2 7,000 2BCity Hall Replace carpet 2 5,000 2BBayshore Bluffs Raplace handrail for stairs 2 5,000 2BCity Wide Install 1.28 gallon per flush toilets and 1 pint flush urinals at all city restrooms Many 30,000 2BPublic Works Install rainwater harvesting 3 2,000 2BVeterans Memorial Building Complete the turf removal and finish the Civic Landscape Improvement Program at this location 12,000 3CCommunity Center Upgrade and interlock ventilation fans with new HVAC in Auditoriums 2,000 3CColeman Restroom Renovation for restroom accessibility and add sidewalk from the boardwalk 25,000 3 C Veterans Memorial Building Recover movable wall 2,500 $102,600 NOTE: This fund supports projects related to the City Council's 2016-2017 Goals Project completion is based on priority and available funding. Legend: Green: Completed Projects on FY16/17 list. Orange: Completed Projects Not Identified for FY16/17. Blue: Projects on FY 16/17 list to be completed in FY 17/18 pending receipt of$36K rental income Pink: Projects on FY 16/17 list to be completed in  17/18 subject to available resources. PROPOSED FOR THE 2017/18 FISCAL 2017/18 Adopted Budget Page 212 CITY OF MORRO BAYGENERAL FUND FACILITY MAINTENANCE FUNDCOMPLETED FACILITY MAINTENANCE PROJECTS FOR HISTORICAL FISCAL YEARS 2012-2015 SITEWORKACTUAL COST SITE WORKACTUAL COSTFY 2011/12:FY 2012/13:975 Shasta Demolition, asbestos abatement & report 6,845$ City Hall Replace/Repair roof 1,000$ 983 & 985 Shasta Demolition, asbestos abatement & report14,275 Community CenterRepair security hardware4,000 Call-A-RideSewer lateral enhancement- Community CenterRe-key lockable doors4,000 City Hall Paint exterior & pressure wash8,413 Community CenterAccess system improvements15,000 City Hall Termite mitigation2,805 Community CenterReplace refrigerators energy efficiency7,110 Community CenterReplace upstairs roof6,850 Community CenterRepair lockable windows500 Community CenterReplace Senior Center roof24,900 Community CenterLockable kitchen cabinets for rent250 Community CenterFrench drain repair along Kennedy Way10,865 Police DepartmentRepair roof5,500 Community CenterPaint exterior & pressure wash15,986 Public ServicesReplace/Repair roof1,500 Police DepartmentEvidence room renovation & flooring5,130 Public ServicesReplace acoustic ceiling tiles500 Public ServicesPaint exterior, pressure wash, repair & seal windows22,113 Veteran's Memorial BuildingRepair roof8,000 Veterans Memorial BuildingPaint exterior, lead paint test, & pressure wash8,965Veterans Memorial BuildingAsbestos abatement / flooring overlay8,731Total 135,878$ Total 47,360$ FY 2013/14:FY 2014/15:Centennial ParkRepair dry rot, re-roof and paint restrooms6,500$ Bayshore Bluffs restroom Repair dry rot & re-roof1,200.00City Hall Replace flooring throughout, except restrooms6,542City Hall Upgrade fire & security system4,954.00City ParkClean and seal floor in restrooms2,179City Hall Replace carpet in offices1,738.00City-wideCivic Landscape Improvement Program (CLIP)451 City Park restroom Repair dry rot & re-roof1,200.00Community CenterTreat for termites685 Corp. Yard Heater replacement1,090.00Community CenterRefinish auditorium floors10,650 Morro Rock restroomSeal floors, upgrade lighting, add hand 5,440.00Fire DepartmentReplace fence along rear of property2,600Public Restrooms-Del Mar Lift Station replacement13,362.00Lila Keiser ParkRepair dry rot, replace doors, fumigate - restrooms and 2,225Public wash sinks Install ultra low flow faucets at all wash sinks8,630.00Police DepartmentReplace sewer lateral and planter repair10,309 Teen CenterTreat for termites2,195.00Teen centerReplace front doors and repair dry rot around windows1,620Teen Center Upgrade fire & security system3,427.00Various restroomsReplace flush valves with low-flow2,500Veterans Memorial Building Encapsulate clolset floors and storage areas4,198.00Veterans Memorial BuildingRenovate barbeque88Veterans Memorial Building Replace picnic tables4,498.00Veterans Memorial BuildingUpdate water heater to tankless3,470Veterans Memorial Building Update kitchen cabinetry to washable shelves1,950.00Veterans Memorial BuildingPaint interior500 Total 50,319$ Total 41,750$ 2017/18 Adopted Budget Page 213 CITY OF MORRO BAY2-Year Prospective Street Pavement ListPavement Condition ProposedFull Depth ReclamationStreet IDIndexStartEnd Region Street Type Area Treatment BudgetBudgetAlder33 San Joaquin Street Elena StreetZone 2 R - Residential/Local 22860CS$14,630.40 $42,291.00Alder41 Sequoia Street San Jacinto StreetZone 2 R - Residential/Local 21420CS$13,708.80 $39,627.00Alder44 San Jacinto Street San Joaquin Street Zone 2 R - Residential/Local 226803CS$20,638.80 $41,958.00Atascadero40 EmbarcaderoPark StreetZone 3 C - Collector403203CS$36,691.20 $36,691.20Barlow44 Main StreetEndZone 4 R - Residential/Local 14690CS$9,401.60 $9,401.60Bayview38 Hill StreetHillview StreetZone 2 R - Residential/Local 213903CS$19,464.90 $19,464.90Beachcombe15 Yerba Buena Street North EndZone 1 R - Residential/Local 4840DCS$7,211.60 $7,211.60Birch28 San Jacinto Street San Joaquin Street Zone 2 R - Residential/Local 223203CS$20,311.20 $20,311.20Birch38 Sequoia Street San Jacinto StreetZone 2 R - Residential/Local 235603CS$21,439.60 $43,586.00Cedar35 San Jacinto Street San Joaquin Street Zone 2 R - Residential/Local 223203CS$20,311.20 $41,292.00Cedar45 San Joaquin Street Elena StreetZone 2 R - Residential/Local 18290CS$11,705.60 $33,836.50Cedar47 Sequoia Street San Jacinto StreetZone 2 R - Residential/Local 225003CS$20,475.00 $41,625.00Coral19 Paul CreekJava StreetZone 1 R - Residential/Local 4860DCS$7,241.40 $7,241.40Damar50 Sandalwood Avenue EndZone 1 R - Residential/Local 119003CS$10,829.00 $22,015.00Dogwood37 San Joaquin Street Elena StreetZone 2 R - Residential/Local 207003CS$18,837.00 $38,295.00Ironwood44 Elena StreetAvalon StreetZone 2 C - Collector667803CS$60,769.80 $60,769.80Ironwood45 Avalon StreetMimosa StreetZone 2 C - Collector295803FCS$29,580.00 $54,723.00Island43 Sandalwood Avenue Coral AvenueZone 1 R - Residential/Local 70003CS$6,370.00 $12,950.00Jamaica40 Panorama Drive Main StZone 1 R - Residential/Local 210403CS$19,146.40 $19,146.40Juniper27 Elena StAvalon StZone 2 R - Residential/Local 510303CS$46,437.30 $46,437.30Juniper43 North EndElena StreetZone 2 R - Residential/Local 68080CS$43,571.20 $43,571.20Kings32 Balboa StreetPacific StreetZone 4 C - Collector7200CS$4,608.00 $4,608.00Kodiak39 Beachcomber Drive EndZone 1 R - Residential/Local 137553CS$12,517.05 $25,446.75Kodiak42 Panorama Drive Main StZone 1 R - Residential/Local 197003CS$17,927.00 $36,445.00La Loma46 Balboa StreetQuintana RoadZone 4 R - Residential/Local 21450CS$13,728.00 $13,728.00LasVegas47 Elm AvenueMain StreetZone 2 R - Residential/Local 16800CS$10,752.00 $10,752.00LittleMorr29 Radcliff StreetCity LimitsZone 3 RL - Rural Local (7) 760003CS$69,160.00 $140,600.00Main36 Quintana Place Surf StreetZone 3 MiA - Minor Arterial (4) 30420CS$19,468.80 $19,468.80Main37 Zanzibar Street Vashon StreetZone 1 MiA - Minor Arterial (4) 171503CS$15,606.50 $15,606.50MindoroWay42 Beachcomber Drive Mindoro StreetZone 1 R - Residential/Local 6825CS$4,368.00 $4,368.0017/18 Subtotal $626,907.35 $953,468.15FY 2017-182017/18 Adopted Budget Page 214 CITY OF MORRO BAY2-Year Prospective Street Pavement ListPavement Condition ProposedFull Depth ReclamationStreet IDIndexStartEnd Region Street Type Area Treatment BudgetBudgetAllesandro45 Las Tunas Street La Loma AvenueZone 4 R - Residential/Local 35400CS$22,656.00 $22,656.00Butte43 Las Tunas Street EndZone 4 R - Residential/Local 13300CS$8,512.00 $8,512.00Coral50 Indigo CirSan Jacinto StZone 1 C - Collector22275M2$4,009.50 $4,009.50Front39 Harbor StreetNorth End (Embarcadero) Zone 3 R - Residential/Local 18240M2$3,283.20 $3,283.20Front48 Harbor StreetSouth End (Embarcadero) Zone 3 R - Residential/Local 17200M2$3,096.00 $3,096.00Morro48 Pacific StreetMarina StreetZone 3 R - Residential/Local 13200M2$2,376.00 $2,376.00Morro50 Morro Bay Blvd Pacific StreetZone 3 R - Residential/Local 13200M2$2,376.00 $2,376.00MorroBayAl8 Piney WayBernardo AveZone 3 R - Residential/Local 8475CS$5,424.00 $5,424.00OrcasST33 Highway 1EndZone 1 R - Residential/Local 108153CS$9,841.65 $20,007.75OrcasST34 Panorama Drive Main StZone 1 R - Residential/Local 204003CS$18,564.00 $37,740.00OrcasWY46 Orcas StreetEndZone 1 R - Residential/Local 7560CS$4,838.40 $13,986.00Panay44 Beachcomber Street EndZone 1 R - Residential/Local 97653CS$8,886.15 $18,065.25Pico39 East EndMain StreetZone 2 R - Residential/Local 173253CS$15,765.75 $15,765.75Preston17 Main StreetEndZone 3 R - Residential/Local 15840DCS$23,601.60 $29,304.00Ridgeway38 Fairview (East End) Kings AveZone 4 R - Residential/Local 9350CS$5,984.00 $5,984.00Ridgeway50 Kings AveArbutus AveZone 4 C - Collector17050M2$3,069.00 $3,069.00SanJacinto45 Main StCOP at Alder AveZone 2 C - Collector6900M2$1,242.00 $1,242.00Seaview32 Hill StreetAvalon StreetZone 2 R - Residential/Local 222203CS$20,220.20 $41,107.00Shasta45 Olive StreetSouth StreetZone 4 C - Collector50050CS$32,032.00 $32,032.00Sicily32 Beachcomber Drive EndZone 1 R - Residential/Local 73503CS$6,688.50 $13,597.50SouthBay61 QuintanaTwin BridgesZone 4 MiA - Minor Arterial (4) 124845M2$22,472.10 $22,472.10SouthBay61 Twin BridgesCity LimitZone 4 MiA - Minor Arterial (4) 73080CS$46,771.20 $46,771.20Tahiti32 Beachcomber Drive EndZone 1 R - Residential/Local 60003CS$5,460.00 $11,100.00Terra34 Sandalwood Avenue EndZone 1 R - Residential/Local 140003CS$12,740.00 $12,740.00Tide45 IslandZanzibarZone 1 R - Residential/Local 60700 DO$42,000.00 $112,295.00Vashon16 Beachcomber Drive EndZone 1 R - Residential/Local 53003CS$4,823.00 $9,805.00Verdon32 Sandalwood Avenue Coral AvenueZone 1 R - Residential/Local 86003CS$7,826.00 $15,910.00West42 Beach StreetSurf StreetZone 3 R - Residential/Local 14700CS$9,408.00 $9,408.001 Need unit prices for dig outs and full depth reclamation.18/19 Subtotal $353,966.25 $524,134.252This budget is based on current funding availability. Approval of new funding sources would significantly expedite reconstruction.Grand total$980,873.60 $1,477,602.403PMP Street priorities are reevaluated annually during project design to utilize the most appropriate repair method. considering current pavement condition & fund availability. 4Final street selection will occur after Street Summit with Council approval of award.5Needing full depth reclamationFY 2018/192017/18 Adopted Budget Page 215 CITY OF MORRO BAY FIVE YEAR PAVEMENT MANAGEMENT PLAN COMPLETED PROJECTS BY FISCAL YEAR 2013 2014 2015 Bernardo1 Kern1 Alder Avenue Atascadero Road Acacia Panorama Main8 Beach1 Andros Street Beachcomber Avalon Piney Kern1 Marina1 Beachcomber Avenue Blanca Bali Ponderosa Oak1 Pacific1 Bonita Street Bonita Bayshore Prescott Olive3 Harbor1 Cedar Avenue Delmar Park Trail & Parking Lot 2 3 Birch San Juan Estero1 Mimosa1 Dawson Avenue Harbor Bolton Shasta Quintana3 "PD Alley" Dogwood Avenue Hatteras Casitas Sienna Pecho1 Elm Avenue Java Clarabelle Sunset Ridgeway1 Fir Avenue Market Conejo Tuscan Center1 Gilbert Street Panorama3 Coral Vashon Marengo1 Greenwood Avenue Quintana Place Driftwood Vista Dana1 Hatteras Street Quintana Road Dunes Walnut Fresno1 Hemlock Avenue Radcliffe Elena Zanzibar Marina2 Island Street Sandalwood Elm Scott1 Java Street San Jacinto Fir South2 Kings Street San Joaquin Greenwood Alta1 Nassau Street Sicily Harbor Tide1 1 Nevis Street South Bay Blvd 3 Hill Embarcadero1 Norwich Street Trinidad Hillview Balboa1 Oahu Street Whitbey Kennedy Las Tunas Panay Street Casitas* Koa Morro2 Quintana Road Conejo* Laurel Sequoia Street Juniper* Luzon Whidbey Way Koa* Mindoro Yerba Buena Street Laurel* Monterey Maple* Napa Nutmeg* Nutmeg Pacific2 Pacific NOTES: 1 Work done without charge as compensation for contractor delays; value of work = $61k 2 Storm Drain Repair 3 Pavement Replacement * Trench Repair 2012 2016/2017 2017/18 Adopted Budget Page 216 CITY OF MORRO BAY 2017/18 ADOPTED BUDGET SUPPLEMENTAL INFORMATION Water Bond Coverage Ratio Glossary Investment Policy Unfunded Liabilities Ordinances Resolutions 2017/18 Adopted Budget Page 217 2017/18 Adopted Budget Page 218 2017/18 Adopted Budget Page 219 CITY OF MORRO BAY GLOSSARY OF TERMS Accrual Basis of Accounting The basis of accounting by which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received. Appropriation A specific amount of money authorized by the City Council for an approved work program or individual project. Assessed Valuation A dollar value placed on real estate or other property by San Luis Obispo County as a basis for levying property taxes. Balanced Budget A budget in which planned expenditures do not exceed planned funds available. Basic Financial Statements The financial statements that are prepared as of the end of the fiscal year, which is June 30, and provided to our auditor, who reviews them for accurate presentation and issues an opinion on them. Basis of Budgeting Budgets are adopted on a basis consistent with accounting principles , generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments within the general, special revenue and capital projects funds. Beginning/Ending Cash Balance Unencumbered resources available in a fund from the prior/current year after payment of the prior/current year expenses. Bond A certificate of debt issued by an entity, guaranteeing payment of the original investment, plus interest, by a specified future date. Budget An annual financial spending plan. The budget identifies sources of income (revenues) and uses of money (funds to be spent on personnel, services, etc). The City of Morro Bay’s budget encompasses one fiscal year. 2017/18 Adopted Budget Page 220 Budget Calendar The schedule of key dates or milestones, which the City follows in the preparation and adoption of the budget. Budget Message A general discussion of the preliminary/adopted budget presented in writing as part of, or supplement to, the budget document. Explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the City Manager. CalPERS (also called PERS) The California Public Employees Retirement System, which is the agency providing pension benefits to all City employees. CalPERS member definitions With the enactment of the 2013 Public Employees Pension Reform Act (PEPRA), new employees to an agency are classified into two groups: a. Classic members: these are new employees of the City of Morro Bay that have been CalPERS members, through a former employer, and have not had a break in service of more than 6 months. b. New members: these are new employees of the City of Morro Bay that have never been CalPERS members or have had a break in service of more than 6 months. Further information is presented under Retirement Formulas (Tiers). Capital Expenditures Typically are expenditures related to major construction projects such as roads, buildings, and parks. These expenditures are typically capitalized and depreciated over time. Capital Outlay (Capital Assets) Equipment (fixed assets) with a value of $5,000 or more and an estimated useful life of more than one year, such as automobiles and office furniture, which appear in the Operating Budget. Capital Projects Projects that purchase or construct capital assets. Typically a capital project encompasses a purchase of land and/or the construction of a building or facility. Capital Projects Funds General Capital Project Funds are governmental fund types that contain expenditures for general government (not enterprise) capital improvements, buildings, vehicles, land or equipment. Enterprise Capital Project Funds are proprietary fund types and contain the same expenses as those described above. 2017/18 Adopted Budget Page 221 Capital Requirements (5 year) A multi-year financial plan containing proposed capital spending. Certificates of Deposit (COP) A debt instrument used to fund capital projects. For the City of Morro Bay, a COP was issued with the USDA to fund a portion of the construction costs for Fire Station No. 53. Community Development Grants Funds established to account for revenues from the federal government and expenditures as prescribed under programs such as the Community Development Block Grant (CDBG) and HOME Investment Partnerships. COPS (SLESF) Citizens Option for Public Safety, a special safety grant from the State of California. Contingency An appropriation of funds to cover unforeseen events that occur during the fiscal year. Council-Manager Form of Government An organizational structure in which the Mayor and City Council appoint an independent City Manager to be the chief operating officer of a local government. In practice, a City Council sets policies and the City Manager is responsible for implementing those policies effectively and efficiently. Continuing Appropriations, or Carryovers Funding approved in the current budget, but not expended during a particular fiscal year . These appropriations are carried forward into the next fiscal year for their original intended purpose. For the City of Morro Bay, carryover funds are located in Special Revenue Funds (Measure Q, MBTBID) and Capital Project Funds. Cost Allocation A method used to charge General Fund overhead costs to other funds, such as enterprise funds. Debt Service The payment of principal and interest on borrowed funds, such as COPs. Department An organizational unit comprised of programs or divisions. Examples in clude the Police, Fire, and Recreation Departments. Enterprise Fund A fund-type established to account for the total costs of selected governmental facilities and services that are operated similar to private businesses. 2017/18 Adopted Budget Page 222 Equipment Outlay A category of expenditures that captures purchases of capital equipment, such as furniture, vehicles, large machinery, and other items. Estimate Represents the most recent estimate for current year revenue and expenditures. Estimates are based upon several months of actual expenditure and revenue experience, and consider the impact of unanticipated price or other economic factors. Expenditure The actual spending of funds set aside by appropriation for identified goods and services. Execute/Execution This is the performance or implementation of a directive. Fee A general term used for any charge levied by government for providing a service or performing an activity. Fines, Forfeitures, and Penalties Revenue category that contains monies resulting from violations of various City and state laws, and from damage to City property. FFA Firefighters Association, which is the group that represents the sworn fire safety personnel (with the exception of the Chief). Fiscal Year A twelve-month period of time designated as the budget year. The City of Morro Bay’s fiscal year is July 1 to June 30. Full-Time Equivalent (FTE) A position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time Clerk working 20 hours per week would be equivalent to one-half of a full-time position, or 0.50 FTE. Fund A set of inter-related accounts to record revenues and expenditures (expenses) associated with a specific purpose. For a list of City funds, see the Table of Contents, City Funds List. Fund Balance The amount of unrestricted financial resources (not necessarily cash) in a given fund. These may be used to fund existing commitments, and may be available for any use permitted for the fund. 2017/18 Adopted Budget Page 223 GANN Limit (Proposition 4) Under this article of the California Constitution, the City must compute an annual appropriation limit that states a ceiling on the total amount of tax revenues the City can appropriate annually. Generally Accepted Accounting Principles (GAAP) Uniform minimum standards used by state and local governments for financial recording and reporting that have been established by the accounting profession through the Governmental Accounting Standards Board (GASB). General Fund The primary fund used by the City for which revenues and expenditures are not legally restricted for use. Examples of departments operating within the General Fund include Fire, Police, and City Manager. Governmental Accounting Standards Board (GASB) The Governmental Accounting Standards Board (GASB) was organized in 1984 by the Financial Accounting Foundation (FAF) to establish standards of financial accounting and reporting for state and local governmental entities. Its standards guide the preparation of external financial reports of those entities. Grant Contributions of cash or other assets from another governmental agency or other organization to be used or expended for a specific purpose, activity or facility. HUD The United States Department of Housing and Urban Development. Infrastructure Facilities that support the daily life and growth of the City, for example, roads, water lines, and sewers. Interfund Transfers A transfer of funds between departments/funds for specific purposes, as approved by the appropriate authority. Internal Service Funds The City has two Internal Service funds, collecting money from departments/funds to pay for the established purpose of the fund. a.Risk Management: this Fund manages the City’s insurances, and has a committed minimum balance of $100,000 as set by Resolution No. 33-15. b.Information Technology: this Fund will accumulate money for technology, as well as pay for normal operational items (i.e., desktop computers, keyboard 2017/18 Adopted Budget Page 224 replacements); establishing this Fund is a Management Partners’ recommendation from the 2015 assessment. Levy To impose taxes, special assessments, or charges for the support of City activities. Licenses and Permits Revenue category that accounts for recovering costs associated with regulating business activity. Miscellaneous employees This is the CalPERS retirement group that contains the SEIU -represented, non-sworn Police and Harbor, executive, management and confidential employees. NPDES The National Pollution Discharge Elimination System, which is a permitting process with which the City is required to comply to ensure that storm water runoff is not contaminated. Ordinance A formal legislative enactment by the governing board (City Council) of a municipality. If it is not in conflict with any higher form of law, an Ordinance has the full force and effect of law within the boundaries of the municipality to which it applies. Operating Budget The annual appropriation of funds for on-going program costs, which include salaries, benefits, maintenance, operation, and capital outlay items. PARS The Public Agency Retirement System (PARS) is the City’s substitute for participation in Social Security Insurance. Part-time, non-PERS employees are enrolled in PARS and pay a 6% contribution. The City pays 1.5% on behalf of the employee. PERS – see CalPERS Personnel Expenditures (Expenses) An expenditure (expense) category that captures costs related to employee compensation, such as salaries and fringe benefits. Personnel expenditures (expenses) include salaries, pensions, retirement, special pay, and insurance for full-time and part-time employees of the City. 2017/18 Adopted Budget Page 225 POA Police Officers Association, which is the group representing the sworn police safety and communications personnel (with the exception of the Chief, Commander and Support Services Coordinator). Program Represents major areas or support functions; defined as a service provided to citizens, other departments, or other agencies. Proposed/Preliminary Budget A balanced budget presented to the City Council by the City Manager. Any City Coun cil changes to the Proposed/Preliminary Budget are incorporated into the final Adopted Budget. Request for Proposals (RFP) A written solicitation issued by the City which generally describes the goods or services sought to be procured, sets forth minimum standards and criteria for evaluating proposals submitted in response to it, generally describes the format and content of proposals to be submitted, provides for negotiation of terms and conditions of the contract and may place emphasis on described factors other than price to be used in evaluating proposals. Request for Quotes (RFQ) A written solicitation issued by the City for quotes for goods or services sought to be procured. This is a much less formal process than the RFP. Retired annuitant There are specific rules and restrictions with hiring individuals that are retired from the CalPERS retirement system. These affect people retired from any CalPERS participating agency. The main rules and restrictions are: a.Fiscal year hours restricted to 960 hours. b.Compensation restriction to no more than what the former position incumbent was earning. c.No additional benefits or reimbursements to the annuitant. Retirement Formulas (Tiers) The various CalPERS retirement formulas in which the City participates: Non-sworn SEIU, Safety, Executive, Management, Confidential: Tier 1 2.7% at age 55 Single highest year for final compensation Tier 2 2% at age 60 Highest consecutive 36 months Tier 3 2% at age 62 Highest consecutive 36 months 2017/18 Adopted Budget Page 226 Retirement Formulas (Tiers) - Continued Sworn Public Safety Fire, Police, Harbor Patrol: Tier 1 3% at age 50 Single highest year for final compensation Tier 2 3% at age 55 Highest consecutive 36 months Tier 3 2.7% at age 57 Highest consecutive 36 months Revenues Funds received from the collection of taxes, fees, permits, licenses, interest, and grants during the fiscal year. Schedule A summary of expenditures, revenues, positions, or other data that reflects funding sources and spending plans of the budget and capital improvement programs. SEIU The Service Employees International Union, which is the union representing the majority of the City’s general/miscellaneous employees. SLESF(COPS) Supplemental Law Enforcement Services Funds, which is a special Police safety g rant from the State of California, currently budgeted at $100,000 per year. This grant cannot be used to supplant (replace) monies historically budgeted for General Fund programs. Special Revenue Funds Revenues received that have specific purposes for which they are earmarked. Transfers Authorized exchanges of money, positions, or other resources between organizational units or funds. Transient Occupancy Tax (TOT) A tax that is levied on occupants of hotel and motel rooms in the City for stays of less than 30 days. 2017/18 Adopted Budget Page 227 PURPOSE This investment policy establishes the practices and procedures to be used in managing the City of Morro Bay's (City) portfolio in accordance with the requirements of the State of California Government Code and the guidelines provided by the California Debt and Investment Advisory Commission (CDIAC) and the Government Finance Officers Association (GFOA). SCOPE OF THE POLICY This policy governs the investment of money that is not required to meet the immediate needs of the City. LEGAL AUTHORITY Government Code Sections: California Government Code Sections 53600 to 53609, 53635, and 16429.1 govern the investment of local agency funds. Legislative Changes: Any applicable legislative actions will be acted on as of their effective dates and will be incorporated into the policy annually, specifying the California Government Code sections that have been added, deleted or amended. OBJECTIVES The City Treasurer will consider the following factors in priority order when assessing investment opportunities: Safety: The primary objective is the preservation of principal. Capital losses will be avoided, whether from default or erosion of market value, meaning that the City will not sell or trade an investment because of market fluctuation. The two types of risk to be minimized are: 1. Credit risk – the risk that an issuer or other counterparty to an investment will not fulfill its obligations; and 2. Interest rate or market risk – the risk that changes in interest rates will adversely affect the fair value of an investment. CITY OF MORRO BAY INVESTMENT POLICY JULY 2017 2017/18 Adopted Budget Page 228 Liquidity: The second objective is the liquidity of the portfolio. The portfolio should remain sufficiently flexible to enable the City to meet the operating requirements that are reasonably anticipated. In order to ensure liquidity, the investment policy must recognize that calculating cash flows are the basis of any good investment strategy. Meeting the daily cash flow demand goes hand-in-hand with meeting the City’s liquidity needs. Yield: The third objective, behind safety and liquidity, is attaining a market rate of return throughout the budgetary and economic cycles. While managing the portfolio, the Treasurer, and designated staff, will strive to maintain public trust by avoiding any transactions that might impair public confidence in the City. When selecting investment instruments, the Treasurer, and designated staff, will remain cognizant of any social and policy considerations that have been established and defined in this policy. GENERAL STRATEGY The Treasurer, and designated staff, may follow a passive or active investment strategy. Passive investment policies adhere to the investment goal of holding investments to maturity. Active investment strategy is the buying and selling of investments to achieve a certain benchmark objective. Great care, coupled with the advice of a fiscal agent, should be followed with an active investment policy. The City follows the passive investment strategy of holding investments to maturity. STANDARD OF CARE Prudent Investor Standard: The prudence standard for trust investing traces back to Harvard College v. Amory, 26 Mass. (9 Pick.) 446 (1830). Judge Samuel Putnam stated that trustees should "observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety, of the capital to be invested." This standard will be followed by the Treasurer, and designated staff. Ethics and Conflict of Interest: The Treasurer, and designated staff, shall refrain from personal business activities that could conflict with the proper execution of the investment program or which could impair their ability to make impartial decisions. 2017/18 Adopted Budget Page 229 Delegation of Authority: The following positions and corresponding City personnel are delegated the power to invest the funds of the City: City Manager: Vacant (C. Schmollinger Acting) Finance Dir/Treasurer: Craig Schmollinger Budget/Accounting Manager: Sandra Martin Senior Accounting Technician: Valerie Webb These designations may change with the annual affirmation of this policy. Each delegate is required to adhere to the requirements set forth in the investment policy. SAFEKEEPING AND CUSTODY Third-party Safekeeping: Ownership of the City’s investment securities will be protected through third-party custodial safekeeping. The custodian will provide the City with a safekeeping receipt or monthly, itemized statement. Exceptions to this requirement are made for certificates of deposit, money market funds and investment pools. Internal Controls: These are designed to ensure that the assets of the City are protected from theft, loss, or misuse. Such internal controls that are in place include: 1.Control of collusion; 2.Separation of duties; 3.Safekeeping of securities; and 4.Written confirmation of telephone transactions and wire transfers. The City will separate the person who authorizes or performs the transac tion from the person or people who ultimately record or otherwise account for the transaction to achieve separation of duties. Delivery vs. Payment: All investment transactions should be conducted using standard delivery vs. payment procedures. In delivery vs. payment, the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian, and ensures that securities are deposited in an eligible financial institution prior to the release of funds. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City will only conduct business with approved banks, savings and loans, credit unions, and securities brokers/dealers. A list of financial dealers and institutions is to be maintained. Broker/dealers and institutions must meet all requirements established by federal and state law. SUITABLE AND AUTHORIZED INVESTMENTS Authorized Investment Types: The City, by virtue of California Government Code Sections 53600 – 09, has the ability to invest in numerous types of instruments. The City has looked 2017/18 Adopted Budget Page 230 at its goals, objectives, and standards of care in establishing a list of authorized investment types that also meet statutory requirements. Those types of investment instruments that meet the criteria for the City are: 1.Securities of the U. S. Government, or its agencies; 2.California’s Local Agency Investment Fund (LAIF) pool; 3.FDIC Insured Certificates of Deposit up to $250,000; 4.Bankers’ Acceptances (not exceeding 40% of the City’s portfolio/max maturity 180 days); 5.Money Market funds; 6.Collateralized deposits; 7.Passbook savings accounts; and 8.Repurchase agreements and reverse repurchase agreements (no more than 25% of the City’s portfolio). Prohibited Investment Types: In addition to a listing of authorized investments, California Government Code Section 53601.6 prohibits local agencies from investing in the following instruments: 1.Inverse floaters; 2.Range notes or mortgage-derived, interest-only strips; 3.Any security that could result in zero interest accrual if held to maturity; 4.Stock; and 5.Futures or options. There may be additional investment instruments in which the City does not want the Treasurer to invest, and those will be defined in future investment policies. INVESTMENT PARAMETERS Diversification of Investments: The City may choose to impose more stringent restrictions or further restrictions on other investment instruments, depending on its investment goals and risk tolerances, than those proposed in the California Government Code Sec tions 53600 - 09. The City has indicated those authorized investments as follows: 1.Money market funds; 2.Collateralized deposits; 3.Securities of any one issuer, not to exceed 5% of the City’s portfolio, except those obligations of the U.S. government, U.S. governmental agencies, and U.S. government-sponsored enterprises; 4.Mutual funds; and 5.FDIC insured certificates of deposits. Maximum Maturity: California Government Code Section 53601 lists the maximum maturity for any instrument as five (5) years. The exception to this time frame is made for investments with LAIF or collateralized deposits. 2017/18 Adopted Budget Page 231 Minimum Credit Requirements: The City has chosen to follow the California Government Code Section 53601 that sets the minimum credit rating required for certain investment instruments as follows: 1.Short-term debt shall be rated at least “A-1” by Standard & Poor’s Corporation, "P-1" by Moody's Investors Service, Inc., or "F-1" by Fitch Ratings. If the issuer of short-term debt has also issued long-term debt, this long-term debt rating shall be rated at least "A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings. 2.Long-term debt shall be rated at least "A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings. Maximum Weighted Average Maturity of a Portfolio: As part of the monthly portfolio performance report that is provided to the City Council, a weighted average maturity (WAM) of the portfolio is calculated. While there are no requirements under state law for a maximum WAM of a portfolio, CDIAC’s Local Agency Investment Guidelines suggest that local agencies include and monitor WAM to arrive at an acceptable range for future implementation of a maximum benchmark. PORTFOLIO MANAGEMENT ACTIVITY Active or Passive Portfolio Management: In active portfolio management, treasurers buy and sell securities based on how to maximize portfolio values over a given timeframe. In passive portfolio management, the goal is to match a market rate of return (usually a benchmark). Weighing the pros and cons of each strategy in light of staff resources and investment, the City has chosen to follow a passive portfolio management strategy. Competitive Bidding: Investments are purchased in the most cost effective and efficient manner utilizing approved brokers/dealers on all investment transactions. Reviewing and Monitoring of the Portfolio: The portfolio requires monthly staff review to ensure the investments are being properly tracked and reported, and quarterly reporting to the Citizens Finance Advisory Committee. Portfolio Adjustments: If the portfolio demonstrates non-compliance with the investment policy, the Treasurer, and designated staff, may hold the affected securities to maturity to avoid losses; however, the Treasurer may choose to rebalance the portfolio earlier to bring it back into compliance only if the portfolio will not suffer any losses for selling the investment prior to maturity. Performance Standards: The objective of investing is to obtain a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs. 2017/18 Adopted Budget Page 232 REPORTING Reporting Methods: On an annual basis, the investment portfolio will be presented first to the Citizens Finance Advisory Committee for review, then at a City Council meeting, along with the annual financial reports, and will list the following components: 1.Types of investment; 2.Issuer names; 3.Dates of maturity; 4.Par amounts; 5.Dollar amounts; 6.Market values; 7.Descriptions of programs under the management of contracted parties; 8.A statement of compliance with the investment policy; and 9.A statement of the ability to meet cash flow needs for six months. Governmental Accountings Standards Board (GASB) Statement No. 31 - Marking to Market: The City’s portfolio is to be marked-to-market for the monthly investment report provided to the City Council and at minimum, annually for the financial statements. Market values are to be obtained from a reputable and independent source and disclosed to the City Council in the monthly written report. The independent source of pricing should not be one of the parties to the transaction being valued. Such an independent source could include a broker or other financial institution that was not counterparty to the transaction, the custodial bank if the bank was not a counterparty to the transaction, publicly available publications such as The Wall Street Journal, or other pricing services for which a separate fee would be paid. This is consistent with GASB Statement No. 31, which requires that governmental entities report investments at fair value, and with the California Governmental Code, which also requires market values of investments be reported. Calculation of Yield and Costs: All yield rates on investments will be presented at book value. Investment Policy Adoption, Review, and Amendment: The investment policy will be reviewed, amended, and presented to the City Council annually at the beginning of the calendar year. The review should ensure that the policy is consistent with the overall objectives of preservation of principal, liquidity, and retu rn, and is in conformance with the law, financial and economic trends, and the cash flow needs of the local agency. Definitions or Glossary of Terms: This investment policy includes a definition section (Appendix A) in order to establish a common vocabulary between the Treasurer, and designated staff, the City Council, and the public. 2017/18 Adopted Budget Page 233 APPENDIX A – INVESTMENT POLICY TERMINOLOGY The following are examples of terminology commonly found in California City investment policies. The inclusion of these sections provides clarity to investment policies and better enables readers to understand important concepts. Authorized Financial Dealers and Institutions: A list of financial institutions authorized to provide investment services. May also include a list of approved security broker/dealers with which the City can do business. These institutions and broker/dealers are usually selected by their ability to add value to the investment process. Some criteria to consider when choosing an approved broker/dealer include creditworthiness, expertise, and the products in which the financial dealer or institution is familiar. GFOA suggests that all entities qualifying for investment transactions provide audited financial statements; proof of industry group (National Association of Securities Dealers [NASD]) certification; proof of state registration; completed broker/dealer questionnaire; and certification of having read, understood, and agreeing to comply with the investment policy. Bankers' Acceptance: A draft, bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate. Collateralization: Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security. California Government Code Section 53601 requires that all repurchase agreements be secured by eligible securities with a market value of 102 percent or greater of the funds borrowed. California Government Code requires public deposits to be collateralized at 110%. Delegation of Authority: The granting of authority to manage the investment program to designated officials. Such authority is usually derived from code sections, ordinance, charters, or statutes. Government Code Section 53607, for example, allows the City Council to delegate, for a one-year period, its authority to invest or reinvest funds or to sell or exchange securities held by the local government. Delivery vs. Payment: A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian. It ensures that securities are deposited in an eligible financial institution prior to the release of funds. A third-party custodian as evidenced by safekeeping receipts should hold securities. Diversification: A process of investing assets among a range of security types by sector, maturity, credit rating, and call type or structure. This reduces exposure to risk by combining a variety of investments, which are unlikely to all move in the same direction. GFOA suggests diversifying a city’s investment portfolio by limiting investments to avoid exposure to a specific sector, limiting investment in securities with higher credit risks, investing in instruments with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as a local government investment pool, money market funds, or 2017/18 Adopted Budget Page 234 overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. Ethics and Conflicts of Interest: The California Political Reform Act of 1974 requires certain designated public officials at all levels of government to publicly disclose their private economic interests and requires all public officials to disqualify themselves from participating in decisions in which they have a financial interest. As part of this requirement, local agencies are required to adopt and promulgate a Conflict of Interest Code, with certain required sections. To further promulgate this Code, investment policies sometimes include language requiring the ethical conduct of investment officers and statements regarding refraining from personal business activity that could conflict with the proper execution and management of the investment program or that could impair their ability to make impartial decisions. To avoid conflicts, GFOA recommends that investment officers disclose material interests in financial institutions with which they do business, disclose personal financial interests that could be related to the performance of the investment portfolio, and refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the local government. Exemption: Language that grandfathers prohibited investments into the investment policy because they may have been held in the portfolio prior to the prohibition. When these investments mature or are liquidated, the money should be reinvested as provided by the policy and the exemption language should be removed from the policy. FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to $250,000 per deposit. General Objectives: The section of an investment policy that illustrates the three main objectives (safety, liquidity, and yield), in order of priority, of a good investment policy. In addition to these commonly included objectives, there are a myriad of other objectives for which an investment policy can strive. Safety is the preservation of principal. Liquidity is how easily an investment may be redeemed for cash. Yield is the current rate of re turn on a security generally expressed as a percentage of its current price. As per California Government Code Section 53600.5, safeguarding the principal of the funds under its control should be the primary objective of local agencies. Liquidity also should be a principal objective of a portfolio. The portfolio should maintain sufficient liquidity to meet operating requirements. To accomplish this, a local agency can structure a portfolio so that investments mature when cash is needed and also by investing in liquid securities with an active secondary market. Yield should be the last objective an investment portfolio should strive for, behind safety and liquidity. Since there are many different ways for yield to be calculated, the investment policy should specify how it is to be calculated. Internal Controls: The system used to ensure that the local government assets are protected from loss, theft, or misuse. Such a system should provide a reasonable assurance that such loss, theft, or misuse can be preve nted. Examples include separation of duties, delegation of authority, and documentation. GFOA suggests that an internal control system address the following points: control of collusion, separation of transaction authority from 2017/18 Adopted Budget Page 235 accounting and recordkeeping, custodial safekeeping, avoidance of physical delivery of securities, clear delegation of authority to subordinate staff, written confirmation of transactions for investments and wire transfers, and development of a wire transfer agreement with the lead bank and third-party custodian. Investment Parameters: Specified restrictions on investments to limit the amount of risk in a portfolio. These parameters may be specified in the California Government Code; however, the local agency may choose to further restrict investment options depending on its risk tolerance. Such parameters may include diversification of investments types, percentages, or dollar limits per issuer and setting maximum maturities. Investment Types: A recitation of the investment types the local agency has been given authority in which to invest. This may be a list of securities allowable under California Government Code Section 53601 et seq., and may be further restricted by the agency itself. For a description of the allowable California local agency investment instruments, please see CDIAC’s latest version of its Local Agency Investment Guidelin es, available on its website at www.treasurer.ca.gov/cdiac. GFOA recommends the investment in the following types of securities: U.S. government securities and agency obligations; highly-rated certificates of deposit, bankers’ acceptances, commercial paper; investment-grade state and local government obligations; repurchase agreements securitized by the previously-mentioned securities; SEC-regulated, dollar-denominated money market mutual funds; and local government investment pools. LAIF: Local Agency Investment Fund, the State of California’s investment pool in which cities, counties and special districts may participate. Liquidity: A liquid asset is one that can be quickly and easily converted into cash without loss in value. Market Value: The price at which a security is trading at a point in time. Selling an investment at market value can result in a gain ($500,000 investment sold for $515,000 = $15,000 gain) or loss ($500,000 investment sold for $498,000 = $2,000 loss). Gains and losses are dependent on changes in the current rate of interest as compared to the interest rate of the investment that is being considered for sale. Marking-to-Market: The act of recording the price or value of a security to reflect its current market value rather than its book value. Maximum Maturities: Maturity is the date on which the security or obligation is redeemed by the issuer in exchange for cash. California law states that local governments cannot invest in instruments with terms remaining to maturity in excess of five years unless they receive express authority from their legislative bodies to do so. Local governments should attempt to match investment maturities with anticipated cash flow requirements. There is no requirement under California law for local governments to have a weighted average maturity (WAM) restriction for their portfolio, although CDIAC’s Local Agency Investment Guidelines suggests that local agencies consider adopting a WAM restriction. 2017/18 Adopted Budget Page 236 Performance Standards: The criteria by which a stated goal is measured. An investment portfolio’s performance and risk exposure should be evaluated against appropriate benchmarks on a regular basis. One standard that should be strived for should be a market rate of return in a given interest rate environment. Policy Considerations: The local ordinances or other requirements that place restrictions on the policy. Local governments should consider what should be exempted from the policy and also when, or under what circumstances, the policy should be amended. Pooling of Funds: A statement in the investment policy that except for certain restricted or special funds, cash balances should be consolidated from all funds to maximize investment earnings. Portfolio: The collection of investment instruments held. Prudent Investor Standard: Legal maxim that all investments should be made with care, skill, prudence and diligence under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the professional management of their business affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Reporting: Presentation of evaluation data or other information to communicate processes, roles, and results. Investment policies should include reporting requirements such as methods of reporting investments, the standards against which investments should be reported, and the requirement for calculating market value. Reporting Methods: Ways in which investment outcomes are reported including listing of instrument values, dollar value returns, percentage yields, etc. GFOA suggests that local governments prepare investment reports at least quarterly. In California, investment reports are no longer required to be submitted to legislative bodies. This requirement is now permissive. If a local government chooses to submit an investment report in accordance with California Government Code Section 53646 to their legislative bodies, they are still required to submit copies to CDIAC for the second and fourth quarter of every calend ar year until January 1, 2007. GFOA goes on to list some suggested components of investment reports including listing of securities, gains and losses, average weighted yield to maturity as compared to benchmarks, listing of investment by maturity date, and percentage of the total portfolio which each type of investment represents. Repurchase Agreements: A repurchase agreement is a form of short-term borrowing for dealers in government securities, which are highly valued and thus considered a good source of collateral. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. Investments in repurchase agreements may be made when the term of the agreement does not exceed one year. 2017/18 Adopted Budget Page 237 Risk: Two of the most common risks associated with local government portfolio investing are credit risk and interest rate risk. Credit risk is the risk to an investor that an issuer will default in the timely payment of interest and/or principal on a security. I nterest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Limiting investment to the safest types of securities, pre -qualifying financial institutions, broker/dealers, and others with which the local agency will do business, and diversifying the number of issuers in an investment portfolio can minimize credit risk. Interest rate risk can be minimized by structuring the portfolio so that investments mature at the same time that cash is required or investing operating funds in highly liquid, shorter-term securities (e.g., U.S. Treasury bills or notes). Safekeeping and Custody: Rules derived to ensure the safety of an investment and within whose control the investment resides. Some examples include third-party safekeeping, developing lists of authorized financial dealers and institutions, developing internal controls, and using a delivery vs. payment standard for transactions. Local agencies should consider requiring securities to be held by third-party custodians, evidenced by timely statements illustrating the balance held by these custodians. Scope: The types of funds that the policy covers (e.g., operating funds, bond proceeds, etc.). In general, investment policies cover short-term operating funds. Longer-term funds such as retirement funds are covered by other policies. The investment of bond funds usually is governed by the bond documents such as the trust indenture. Standards of Care: The degree of care that a reasonably prudent person would exercise in the investment of local agency funds. 2017/18 Adopted Budget Page 238 Department Hours Dollars Hours Dollars City Manager 0 $0 0 $0 Deputy City Manager 103 6,098 187 11,091 City Clerk/Human Resources 1,802 64,753 757 28,550 Finance 232 9,410 581 25,649 Police/Support Services 6,308 243,003 4,662 173,757 Fire 8,053 210,364 4,610 129,471 Public Works 1,433 81,972 1,357 65,996 Consolidated Maint/Vehicles/Streets 3,731 104,662 1,595 44,645 Water 2,736 85,044 1,089 33,940 Sewer 1,360 37,154 592 15,344 Waste Water Treatment Plant 544 16,467 993 31,270 Information Systems 1,227 53,054 353 15,250 Recreation - Admin/Youth/Teens 1,457 67,968 1,457 43,646 Harbor 3,423 126,292 1,785 65,590 Tourism/Business Improv District 95 3,128 83 3,107 Totals 32,506 $1,109,368 20,100 $687,304 Sick Leave Compensable Hours CITY OF MORRO BAY SCHEDULE OF UNFUNDED LIABILITITES (ALL FUNDS) AS OF 6/22/2017 2017/18 Adopted Budget Page 239 2017/18 Adopted Budget Page 240 2017/18 Adopted Budget Page 241 2017/18 Adopted Budget Page 242 2017/18 Adopted Budget Page 243 2017/18 Adopted Budget Page 244 2017/18 Adopted Budget Page 245 2017/18 Adopted Budget Page 246 2017/18 Adopted Budget Page 247 2017/18 Adopted Budget Page 248 2017/18 Adopted Budget Page 249 2017/18 Adopted Budget Page 250 2017/18 Adopted Budget Page 251 2017/18 Adopted Budget Page 252 2017/18 Adopted Budget Page 253 2017/18 Adopted Budget Page 254 2017/18 Adopted Budget Page 255 2017/18 Adopted Budget Page 256 2017/18 Adopted Budget Page 257 2017/18 Adopted Budget Page 258 2017/18 Adopted Budget Page 259 2017/18 Adopted Budget Page 260 2017/18 Adopted Budget Page 261 2017/18 Adopted Budget Page 262 2017/18 Adopted Budget Page 263 2017/18 Adopted Budget Page 264 2017/18 Adopted Budget Page 265 2017/18 Adopted Budget Page 266 2017/18 Adopted Budget Page 267 2017/18 Adopted Budget Page 268 2017/18 Adopted Budget Page 269 2017/18 Adopted Budget Page 270 2017/18 Adopted Budget Page 271 2017/18 Adopted Budget Page 272 2017/18 Adopted Budget Page 273 2017/18 Adopted Budget Page 274 2017/18 Adopted Budget Page 275 2017/18 Adopted Budget Page 276 2017/18 Adopted Budget Page 277 2017/18 Adopted Budget Page 278 2017/18 Adopted Budget Page 279 2017/18 Adopted Budget Page 280 2017/18 Adopted Budget Page 281 2017/18 Adopted Budget Page 282 2017/18 Adopted Budget Page 283 2017/18 Adopted Budget Page 284 2017/18 Adopted Budget Page 285