HomeMy WebLinkAboutReso 31-15RESOLUTION NO.31-15
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MORRO BAY, CALIFORNIA,
ADOPTING THE 2015/16 FISCAL YEAR OPERATING 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 day-to-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, 2015; 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; and
WHEREAS, Section 37208 of the California Government Code provides payments of
demands, certified by the City Clerk as conforming to an approved budget adopted by Ordinance
or Resolution, do not require audit by the City Council, prior to payment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California:
The Fiscal Year 2015/16 Operating Budgets are adopted, including any amendments
made at the meeting at which this Resolution was adopted will be attached to this
Resolution; and
2. Staff is directed to prepare and publish a final budget document; and
3. Subject to Paragraph 4., below, the City Manager is authorized to transfer appropriations
within the adopted budget, so long as those changes do not significantly and negatively
prevent implementation of any Council direction or policy, and total appropriations are
not exceeded; and
4. City Council approval is required to transfer appropriations between funds, capital
projects, or capital outlay items and may approve amendments to the adopted budget by
adoption of one or more resolutions; and
Resolution No. 31-15
Page 2
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, 2015, to the Capital
Improvement Project Fund(s) for the 2015/16 fiscal year; and
6. City Council approval is required for any proposed increase to the number of Ca1PERS-
benefited, budgeted positions hired; and
7. City Council chooses to continue to defer the remaining 1.5% of the 2009/10 deferral of
the management and executive employees' 3% Cost -of -Living Adjustment (COLA);
8. Per 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
9. The City Council reduced the amount of General Fund support to the Morro Bay Tourism
Bureau, and other outside funding requests, with its 2015/16 budget, and will continue to
do so with future budgets.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular
meeting thereof held on the 9t' day of June, 2015, by the following vote:
AYES: Irons, Headding, Johnson, Makowetski, Smukler
NOES: None
ABSENT: None
ABSTAIN: None
"- /. - 4
J IE L. IRONS, ayor
ATTEST:
Gt/�So/\i
ANA SWANSON, City Clerk
City of Morro Bay
2015/16 Proposed Budget
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
TABLE OF CONTENTS
PAGE
Preface
1
Budget Message
2
Elected and City Officials, Commissions and Committees
19
Organizational Chart
21
Historical City Staffing Levels - All Funds
22
Personnel Map
23
Resolution of Adoption
25
All Funds Summary of Revenues and Expenditures
28
All Funds Revenues by Category
29
All Funds Expenditures by Category
30
GENERAL FUND
Forecast
32
Revenues
34
Expenditures
35
Expenditures by Category
37
Departments:
City Council
38
Administration
39
Deputy City Manager
42
City Attorney
43
Administrative Services
44
Police
47
Fire
49
Public Works
51
Recreation
58
Community Development
63
Transfers
64
ALL OTHER FUNDS
District Transaction Tax
66
Morro Bay Tourism Business Improvement District
68
County Tourism Marketing District
70
General Government Vehicle Replacement
72
General Fund Emergency Reserve
74
General Fund Facility Maintenance
76
Water Equipment Replacement
78
Sewer Equipment Replacement
80
Harbor Equipment Replacement
82
Community Development Grants
84
State Gas Tax
86
Lower Cost Visitor Accommodations Mitigation Fees
88
Traffic Safety
90
Special Safety Grants
92
M
,%.
TABLE OF CONTENTS
ALL OTHER FUNDS (CONTINUED)
Parking In -Lieu
94
Transit
96
Local Transporation Funds, Bike Paths
98
Local Transporation Funds, Roads
100
Water Revenue
102
Sewer Revenue
104
Harbor Operating
106
Risk Management Internal Service
108
Information Technology Internal Service
110
Capital Replacement Internal Service
112
Projects Accumulation Internal Service
114
Special Assessment Districts
116
Cloisters Assessment District
118
Trust and Agency - General Plan Maintenance Fee
120
MB/CSD Wastewater Treatment Facility
122
Governmental Impact Fees Accumulation
124
Park In -Lieu Fees
126
State Park Marina
128
Housing In -Lieu
130
Water Accumulation
132
Sewer Accumulation
134
Harbor Accumulation
136
SCHEDULES
Capital Projects
138
District Transaction Tax (Measure Q) Expenditure Requests
140
Facility Maintenance Projects
142
Completed Facility Maintenance Projects
143
Five -Year Pavement Management
144
Completed Pavement Management Projects
145
Five -Year Capital Requirements
146
OTHER INFORMATION
Glossary
160
Investment Policy
168
Unfunded Liabilities
179
Ordinances
519 District Transaction Tax (Measure Q)
180
546 Tourism Improvement District
187
562 Amendment to Tourism Improvement District
192
Resolutions:
47-07 Government Impact Fees
194
48-08 Water, Sewer and Harbor excess operating cash transfer to accumulation
200
26-10 Procedure for requesting Measure Q funding
201
10-11 Creation of Deferred Maintenance Account
203
36-11 Partnership with Urban County CDBG
204
46-12 Intended use of Measure Q funds
206
TABLE OF CONTENTS
OTHER INFORMATION (CONTINUED)
48-13 Parking In -Lieu designation of $399,000
208
82-14 County Tourism Marketing District
209
32-15 Risk Management
211
33-15 General Fund Emergency Reserve
213
34-15 Strategic Investment Spending Plan
216
CITY OF MORRO BAY
CITY HALL
595 Harbor Street
Morro Bay, CA 93442
Memorandum for City Council
Date: May 5, 2015
Subject: FY16 Adopted Budget
My staff and I are happy to present you the FY16 Adopted Budget. The General Fund budget is
balanced, and indeed, shows a small surplus of $75,099. This surplus is essential to build our
General Fund Emergency Reserve up, so that, in what we project to be leaner years ahead, we
can then draw those funds out of the reserve to maintain essential City services at their current
levels. More on that below.
As per usual, the budget covers all of the various funds in the City: General, Enterprise, and
Special Revenue:
The Enterprise funds, being pure "business" accounts, by law, don't offer an opportunity to use
these funds anywhere but for the particular enterprise they support.. Staff is confident they
take appropriate care of our resident's fee -based resources, and the infrastructure and services
for which those fees pay. Of note, the recently approved increase in water and sewer rates will
provide the water and sewer funds the liquidity essential to meet our various debt service
requirements, maintain infrastructure and services, and build a new Water Reclamation Facility,
two miles inland from the existing oceanfront site.
The Special Revenue Funds are indeed special. As you are aware, Measure Q generates almost
$1M 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, as per usual, generate the most interest, as it provides the biggest
opportunity for discretionary spending — and for error. Since there is little room for great
debate in the enterprise and special revenue funds, this letter will focus on the General Fund.
That said, I am confident you will find the entire budget to be well-balanced and well -
apportioned.
Not a Normal Budget
This budget will, in some respects, be quite different from previous City budgets. And, further, I
anticipate that the presentation of the budget will be different as well. I am hopeful that these
are all "good" changes!
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A basic, semi -change, is that this is written as much as possible in layperson's language, as the
intended audience is not public -sector finance wizards, but normal people — residents,
Councilmembers, non -finance staff, etc. That is, to improve transparency, we are writing this
memo to the masses, not public -sector finance gurus.
First, the actual budget is different because of some fairly significant staff reorganization over
the past year. This means it will be quite difficult to present a direct departmental comparison
of last year compared to this this year. That is, in some cases, you will see significant variance
from FY 15 to FY16 because of significant changes in staff organization. These changes include:
• Moving the Maintenance Division out of the Recreation and Parks Department and into
a renamed Public Works Department.
• Moving the Planning Division out of the old Public Services Department and into a new,
stand-alone, Community Development Department.
• Creation of a new position, Deputy City Manager for Economic Outreach and Public
Engagement
• My decision not to fill the vacant Recreation Director position.
• Regional dispatching for Police and Fire, and the formation of Support Services at the
Police Department
So, we are all having to look at this budget document, with knowledge of those changes in the
front of our minds, understanding that a year-to-year comparison is less useful.
Second, we are working to present this budget in a way that will preclude a requirement for an
overly -detailed, line -by-line review. Your staff has gone painstakingly line -by-line, and we are
confident that the many vanilla budget lines, such as personnel, supplies, insurance, etc., are
correct. Instead of focusing on those less -discretionary amounts, this letter, and the budget
presentation you received, attempt to focus on the big items where there is measurable
discretion in spending. We also work to tie the budget to the Council's previously established
Goals and FY16 Budget Objectives.
Before looking at the FY16 budget in detail, however, it is appropriate to consider the broader
picture.
10-Year Budget Forecast
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 March 24, 2015. That budget
forecast was quite clear in demonstrating that while Morro Bay is not on the verge of
insolvency, we have some significant medium term (5-year) and long-term (30 year) fiscal
challenges.
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• Long Term Challenges. On the long-term point, the forecast reinforced significant
concerns that I have noted over the past 8 months — our capital savings are, in many
respects, non-existent. This budget begins to address that problem. While our rough
projection is that we should be saving close to $1M per year for maintenance and
eventual replacement of City facilities (from the Police Station and City Hall to
bathrooms at various parks), this budget commits an initial $100,000 to a capital
replacement line item. With this budget, we will establish a capital savings fund, in
which to save and protect those funds for future capital replacement requirements.
Other structural concerns include funding for streets, police and fire, etc. More on that
in the "Cash vs Requirement -Based Budgeting" section of this letter.
• Medium Term Challenges. The medium -term concern is two -fold. First, along with the
rest of California, our CALPERS contributions are going to spike over the next 4 years,
driving our labor costs up measurably. The good news for Morro Bay is, unlike many
California cities, those same CALPERS contributions are going to drop back down to
current levels quite quickly. So, we have a 5-year problem, not a 20-year CALPERS
problem. An additional 5-year concern is a potential recession. Our 10-year budget
forecast projects a moderate recession in 2017. It may come in 2016, or 2018, or not at
all. The important point is that we are projecting a recession, and have that built into
our forecast, so we are prepared for it. Both of these concerns, taken together, drive us
to recommend taking appropriate action now, with respect to our General Fund
Emergency Reserve, in order to chart a course to weather the 5-year storm we see
coming, and come out the other end with our services intact, and, fiscally speaking, our
ship afloat. We essentially have two choices — 1) cut services to keep our Emergency
Reserve above our very high requirement; or 2) base our planning on a 10-year budget
forecast, and dip gently into our Emergency Reserves to sustain services over the
coming 5-year bump.
The Budget Forecast and the General Fund Emergency Reserve
Current City Council Policy (resolution) requires a General Fund Emergency Reserve of 27.5% of
the general fund operating budget or $2.75M, whichever is greater. Staff believes 27.5% is an
appropriate, quite conservative, emergency reserve amount for our City, and does not
recommend changing this standard. However, as noted above, Council and staff are aware of
some measureable expense -side concerns coming in the next 5-years — primarily the CALPERS
contribution spike (and subsequent reduction) and a projected short, (1-year), moderate (5%)
recession (since capital transfers into the General Fund can cause spikes, the 27.5% number has
been calculated using a three year trailing average of actual revenues).
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Since we believe that one purpose of our reserve is to smooth revenue / expense bumps as
they occur (to prevent drastic, short term cuts to services), and since we now have a reliable
forecast of the next ten years, staff recommends Council adopt a Resolution to temporarily
allow very moderately -reduced General Fund Emergency Reserve balances over the next 7
years, and to peg those balances, by dollar amount, to our 1-year budget forecast. This will
allow us to weather the CALPERS spike, and a forecasted 5% recession, without making drastic
personnel or service cuts, and will allow us to continue to make appropriate contributions to
thoughtful, conservative, long-term savings accounts - such as the Capital Replacement Fund -
while also making much needed investments in key areas, such as Information Technology and
the General Plan / Local Coastal Plan project.
Based on our forecast, our General Fund Emergency Reserve balance actually needs to be
higher than our 27.5% requirement in FY16, so we can enter two years of deficit spending in
FY17 and FY18 (due to projected recession and CALPERS contribution spike) before we return to
balanced spending in FY19.
Staff will bring to council a Resolution, affirming the 27.5% General Fund Emergency Reserve
level, but designating the following year-end reserve levels for the next 7 years:
• FY15
$3.385M (above 27.5% requirement)
• FY16
$3.583M (above 27.5% requirement)
• FY17
$3.272M (above 27.5% requirement)
• FY18
$2.685M (21.0% of GF revenues)
• FY19
$2.802M (22.4.0% of GF revenues)
• FY20
$2.797M (21.4% of GF revenues)
• FY21
$2.983M (22.5% of GF revenues)
• FY22
$3.097M (22.7% of GF revenues)
Two important notes:
• First, the accepted Government Finance Officers Association's (GFOA) recommendation
for General Fund Emergency Reserve level is 16.5%. The plan above keeps the City well
above that generally accepted minimum.
• Second, staff intends to update the 10-year budget forecast annually to closely monitor
revenues and anticipated expenses, and to present this forecast to the council. This will
allow us to make required spending adjustments, if our revenue forecasts drop
significantly, and therefore, maintain our Emergency Reserve at the minimum levels
noted above.
A Resolution on the above is presented for adoption with this budget.
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Cash -based vs Requirements -based Budgeting
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 usual suspects (expenditures). While this is standard, it does not give you a very good
picture of what you are choosing not to "buy" and, therefore, it does not allow you to see and
adjust priorities very well. For example, what if you learned you were funding the Fire
Department at 35% of their requirement and streets at 95% of the requirement? You might
choose to increase the Fire budget and reduce the streets budget.
We are not going to get there this year, but I do want to give you a feel for about where we are
in a few key areas, with respect to requirements. I should note that this is an unscientific
assessment; we will do the science in the year or two ahead, but we made some educated
guesses in some key areas and they follow:
• Police Department. We believe that having 3 officers on patrol / shift is appropriate for
Morro Bay. To maintain three x 3-officer shifts, we require 20 police officers. This
budget includes 18 police officers, one of which is the School Resource Officer. The
Police Department's budget, if we had 20 police officers, would be $3,693,477. This
budget provides $3,500,804. We are thus funding Police Department patrol operations
at 94.7% of requirement.
• Fire Department. We believe that having four full-time firefighters on duty and ready to
respond is appropriate for Morro Bay. To achieve this, we require two additional
firefighters at a cost of $188,000. This budget includes 11 full-time firefighters, and
allocates $2,168,144 to fire, 92.0% of the requirement (this includes both GF and
Measure Q funding, and considers only operational requirements for personnel -
equipment and administrative requirements are not assessed.)
• 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. Were our
streets currently at PMI-70 (they are not even close to that good), we would need to
budget around $1,500,000/year simply to keep our streets at that average condition.
This budget allocates about $500,000 to streets. So, we are funding our streets at about
33% of the requirement (an important note here is that since our streets are in quite
bad condition, we actually require about 15 years of $2M/year spending to bring them
up to an average of PCI-70).
• Capital Replacement. The City should have capital maintenance and replacement plan
that determines how much money should be set aside each year for major maintenance
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and eventual replacement of City facilities (a.k.a., funded depreciation). Our current '../
educated guess is that Morro Bay should be saving about $1,000,000/year for major
maintenance / funded depreciation. This budget allocates $100,000 to this purpose,
10% of our requirement.
Over the upcoming years, we intend to better define the requirements for all City activities and
provide these to you in a way that helps you make important budget decisions.
What is Our Lone Term Fiscal Status?
In some ways we are not positive because, as noted above, we need to spend some serious
time and effort evaluating our requirements. Not dreams or wishes — but the science of
requirements tied to specific standards of service. That said, by taking the four significant areas
above into account, we are short about $3,000,000 compared to what we need to meet our
annual requirements.
Said another way, we require annual General Fund revenues of about $15,000,000 to provide,
sustain and maintain basic City services: streets, fire, police, and facilities. Considering that our
projected GF revenues this year are about $12,000,000, we need to increase revenues about
25% to meet basic requirements. Or, considering that Transient Occupancy Tax (TOT) and Sales
Tax generate, about $4.33M/ per year, we would need to increase TOT and Sales Tax about
70% to meet requirements.
While perhaps not germane to this FY16 Budget, this discussion points to the necessity for
Morro Bay to revitalize and diversify our economy. We will never increase revenues 25%, or
increase TOT and Sales Tax 70%, without revitalizing our current business districts, and creating
the conditions to attract appropriate new businesses that will strengthen our economy, while
preserving our small-town, beach and harbor atmosphere.
Short Term Revenue Considerations
A small, but important, function in improving revenues is considering the cost of services and
setting fees (and fee subsidies) appropriately. This budget anticipates appropriate increases in
some City fees. In the years ahead, we should also consider other fee -based, not tax- based
revenue opportunities. For example, implementing paid parking in our busiest areas, while
providing free parking in perimeter lots and for bicyclists, would likely generate $300,000/year
in revenue. This one action represents 10% of our unfunded requirement, would improve
turnover in our business districts, and would encourage pedestrian and bicycle activity, a triple -
bottom -line win.
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,%. The Risk Management Fund and One -Time Spending
As we make a fairly bold pivot toward our next 50 years, the City should consider an
opportunity to invest in certain major City goals. A significant amount of money has built up
over time in the Risk Management Fund and could be made available by changing the reserve -
level policy. At the end of this year, the City's Risk Management Fund will have well over
$500,000 in it.
The Risk Management Fund exists to collect risk -related monies for workers' compensation and
insurance decrements in the base budget, in order to cover costs, and certain unanticipated
claims, not covered by the City's insurance. It is unusual for the City to incur more than
$100,000/year of claims not covered by insurance. Pismo Beach has a Risk Management Fund
reserve level of $50,000. Atascadero does not have a Risk Management Fund Reserve at all,
but uses the General Fund Emergency Reserve to cover risk management items. Morro Bay's
current Risk Management Reserve Policy requires a $500,000 balance in this fund. Considering
our robust General Fund Emergency Reserve level, Staff recommends modifying our policy to
require a $100,000 level in the Risk Management Fund, and a Resolution making this change is
included for adoption with this budget.
Reducing the Risk Management reserve level to $100,000 will free up $400,000 (and perhaps
quite a bit more, depending on the amount in this account at the end of the year) of money for
one -time -spending on strategic investment projects.
Staff will spend this excess on council -approved, one-time strategic investments including:
• $100,000
ADA Compliance Assessment and Corrections
• $300,000
General Plan / Local Coastal Plan Rewrite
• $85,000
Web -based planning, building, work order and business licensing system
• $75,000
Morro Bay Economic Strategic Plan Investment
• $100,000
Information Technology Assessment / Investment
The one-time spending requirements list was presented to the Council, and Council validated
and prioritized each project. At the end of this fiscal year, staff will determine how much
money from the Risk Management Fund, in excess of the $100,000 reserve level, is available,
and will then execute one-time spending off the priority list, set by Council. Staff will execute
up to 75% of the total amount available. 25% of the project spending will be kept on hold until
approved by Council, not later than the FY15/16 mid -year budget review in January 2016. (The
approved one-time investment priority list is attached.)
Special Holding Funds = "Buckets"
Staff has established a number of special holding funds / accounts. We can refer to them as
"buckets," designated to hold funds for a particular purpose.
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• Some buckets are set by policy, such as the General Fund Emergency Reserve.
• Some have been established to protect annually budgeted funds for particular purposes
such as capital replacement.
• Some are one-time buckets, such as a special Morro Bay Power Plant (MBPP)
redevelopment opportunity fund.
The following is a brief description of the status of the main buckets:
• General Fund Emergency Reserve. As discussed previously, level is set by council policy,
and we will start FY16 with $3.385M in this bucket.
• Risk Management Fund. As discussed previously, staff recommends the Council set the
reserve requirement at $100,000, and designate excess at the beginning of FY16 to one-
time strategic investment.
• Capital Replacement Reserve. This bucket is empty. The FY16 budget includes $75K of
capital replacement expenditure, which will be placed in this bucket, when the budget is
approved. At the end of FY16, the City will have $75K on hand for capital replacement.
• Vehicle Replacement Reserve. This bucket has—$23,000 in it. The FY16 budget includes
$75K of vehicle replacement expenditure, which will be placed into this bucket, when
the budget is approved. At the end of FY16, if we spend nothing on vehicle replacement
this year, the City will have $98K on hand for future vehicle replacement.
J
• MBPP Opportunity Redevelopment Fund. This bucket has $100K in it. There is no
money in the FY16 budget to add to this bucket. This is $100K of one-time money to
pay for City actions to support redevelopment of the MBPP. This might include
consultant services, lobbyist support, etc., that will accelerate transition of the MBPP to
an economically- and environmentally - beneficial asset.
• General Plan Fund. This bucket currently has —$104K in it, and staff recommends $300K
of one-time investment to go into this bucket. There is also $397K of grant money,
associated with the General Plan / Local Coastal Plan project. If Council approves the
$300K of one-time money for the GP/LCP, we will start FY16 with—$800,000 in this
bucket for the GP rewrite.
• Capital Projects / Maintenance Bucket. This bucket is currently empty. There is $200K
in the FY 16 Budget earmarked for this bucket. This fund is for unprogrammed capital
projects or major maintenance. In the year ahead, staff will develop a prioritized list of
capital projects / major maintenance, and will conduct that work from funds in this
bucket. This bucket provides some important tactical flexibility, as we move through
the budget year, allowing the ability to react to a major maintenance failure, or take on
an unprogrammed project, supported by the Council and community. Importantly, this
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planned $200K is in the current budget, and therefore, this is not one-time spending,
but is an annually recurring commitment to the project / maintenance fund.
• Information Technology Bucket. This bucket is currently empty. There is $50K in the
FY16 budget for recurring information technology upgrades and $100K of one-time
investment. Staff anticipates we may need perhaps five years of increased IT spending
to reach the level of service we believe we should be providing. This bucket is in place
to hold the portions of that budgeted $50K and the $100K of one-time investment that
we don't spend each year, so it is available in future years.
• Compensable Leaves Fund. This bucket is currently empty, and there is no money in
the FY16 budget for it. It has been created to hold future monies, as we begin to save
for retirement payouts. These payouts are for unused employee leaves that must be
paid out, when an employee separate from City employment. Since we cannot predict
when an employee will retire or quit, those payouts are currently unfunded
expenditures from the current year budget — a bad way of doing business. The current
required level in this bucket is—$616K. That is, if every current employee cashed in all
accrued and payable leaves (vacation, compensatory time off, administrative leave,
floating holiday bank) today, we'd have a bill of about—$616K. We intend to begin
saving into this bucket next fiscal year, and as we are able, will put year-end FY16
money into this bucket.
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 services. This
budget appropriately commits the vast majority of our revenues to our most basic services:
Public Safety and Infrastructure. Put very broadly, and estimated quite conservatively, this
budget directly commits 70%, $8.5M of $12M, to the most basic services a local government
provides: public safety and public works.
General Fund Revenues
The general fund revenue projections are based on the most accurate numbers our professional
budget forecaster can provide. Sales Tax, TOT and Property Taxes provide the well over 70% of
projected revenues, and we are confident these projections are reliable. The balance of
revenues, well below 30%, come from various fees for services, and is more susceptible to
change. We have projected a very modest increase in these revenues, and believe them to be
reliable as well. While projecting revenues might be fun for a few, everyone loves deciding
what to spend money on. So, here with go with expenditures.
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General Fund Expenditures
As with previous budgets, this budget divides expenditures up by various departments and sub -
departmental sections of accounting. The letter will address them all at Departmental level.
Personnel
Since people are the most expensive part of any governmental budget, they deserve a separate
section. This budget spends over 70% on people, and 56% of that is on fire people and police
people. Indeed, over 40% of the entire General Fund budget goes to pay the police officers and
firemen on the streets - money well spent. This budget proposes an increase of one full-time
equivalent (FTE) employee in the General Fund - a Code Enforcement officer.
General Fund Departmental Expenditures
The following sections address the various General Fund Departments / Sections in more detail.
Readers may refer to either the one -page budget schedules, or the more detailed line -by-line
budget reports, for additional information.
City Council
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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, LAFCO and League of California 1.00
Cities memberships, and Councilmember travel and attendance at events such as the
League of California Cities annual conference.
• This budget includes a defined "one-time bequests" line for $7,500. This is the Council's
"benevolence" fund, monies available to support worthy causes, such as SCORE and
Senior Nutrition.
• The budget includes $1,000 for General Plan Citizen's Advisory Committee planning
offsite that we intend to conduct early in FY16.
City Manager
This section covers expenses generated by the City Manager's office which includes the City
Manager and City Clerk.
• The personnel line covers personnel costs for Manager and City Clerk, with 20% of the
City Clerk's wages and benefits charged to Risk Management, as she supervises and
conducts Risk Management functions.
• The services line includes items such as utilities, memberships in various professional
organizations, travel and attendance at conferences, staff training events, and volunteer
recognition events.
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• This budget includes $30,000 for the City Manager' Economic Opportunity Fund, a
discretionary fund for the City Manager to use as appropriate for unidentified projects
and items, related to improving our economic / fiscal situation.
Deputy City Manager
This section covers expenses generated by the newly -created Deputy City Manager's office.
• The personnel line covers personnel costs for the Deputy City Manager.
• The services line includes appropriate professional development and memberships.
Contract Services
This section covers major services for which the City contracts at a city, versus departmental,
level.
• We are projecting an increase in costs for animal services.
• This section includes our cost for Public Agency Retirement System (PARS) contribution
for our part-time employees. Since the City does not participate in the Social Security
system, it must make contributions to a retirement system for those employees who are
excluded from CalPERS.
Elections
This section covers local elections.
• While FY16 does not include an election, we are budgeting for 50% of the average
election cost every year, instead of 100% every other year. The $10,000 in this budget
line will be held in an account to pay for half of the November 2016 election, with the
additional $10,000 coming from the FY17 budget.
Chamber of Commerce Economic Development
In FY15, the City allocated $10,000 to the Chamber to provide business incubator services.
• This budget does not allocate funds to the Chamber.
City Attorney
This section covers 40% of the costs of attorney services in the City. The remaining 60% are
allocated 20% each to the Harbor, Water and Sewer Enterprise Funds.
• The personnel line is a percentage of the cost of the contract attorney's administrative
assistant in City Hall.
• The services line is the a percentage of the legal services contract with Aleshire and
Wynder, and payment for other services such as representation in various legal cases in
which the City is not represented by Aleshire and Wynder.
Page 11 of 218
Finance
.00,
This section covers the City's finance activities.
• The personnel line covers all or part of several finance employees, including the
Administrative Services Director, Senior Accounting Technician and the Account Clerk.
This section is moderately higher this year only to account for a retiring employee we
moved into this department from another department, as part of our succession
planning. Those increased costs will be largely balanced out by not replacing that
employee full time in the department they left.
• The services line includes items such as annual audit, licenses for financial accounting
systems and services, bank fees, postage, telephone service, etc.
Human Resources
This section covers Human Resources operations for a —100 person organization.
• The personnel line is for 75% of one employee.
• The Services line includes items such as recruitments, retainer for Liebert Cassidy and
Whitmore training and advising.
Information Services
This section covers our IT department. As you know, council -approved Goal 10, Objective "d"
states that we intend to "fundamentally remake IT operations" this year - and you will see the
resources to work toward that objective in this section.
• The personnel line includes costs for our single IT professional.
• The services line represents a —$20K increase from last year primarily because a number
of 3-5 year contracts are all expiring the same year.
• The "other" line, at $145K, includes two components:
o First about $100K of that is most of the basic IT costs from all other departments.
In past years departments projected and budgeted their general IT costs
independently. This year, we are creating an internal service fund, and the IT
department will provide most IT services to all departments. So, $100K of this
was in previous budgets, but spread around 10 other departments.
o This $145K line also includes $50K of increased IT spending. This is the amount
of additional IT spending we project to be required to keep the City up to date
with customer -facing IT solutions, software, and hardware. This is not one-time
spending, but can be sustained in future years, since it is in the base budget.
There will be additional one-time IT spending in the one-time spending request
for required transformational IT expenses.
Page 12 of 218
Police Department
This section covers the Police Department and has two parts: operations and support services.
• The operations personnel line includes all PD operations. There is no change to PD
staffing requested or included in this budget. There is a reduction in this line as an
employee was moved to the Support Services part.
• The services line is about $20K higher than last year. Most of this is a placeholder for
additional legal services, related to employee matters. We hope we don't need it, but
we should have it budgeted in case we do.
• PD Support Services personnel costs are sharply lower from last year, but that is due to
moving to a regional dispatch system last summer.
• The services line for PD Support Services is sharply higher due to the dispatch contract
with the Sheriff's office.
Fire Department
This section covers all fire department operations.
• The personnel line can be confusing because of overtime pay, part-time pay, Measure Q
funding, and mutual aid. For example, overtime pay looks very low because mutual aid
responses are not budgeted. Mutual aid responses are reimbursable, however, so any
mutual aid will be close to a wash and balanced out at mid -year review. Bottom -line —
there are no personnel additions planned or funded in this budget.
• The supplies line is moderately lower than FY15, primarily because funding for safety
equipment is down from an FY15 spike, but is still adequate compared to earlier years.
• The services line is up sharply, almost entirely due to the contract with regional
dispatch.
• This budget does include $10,000 for professional assistance writing our Hazard
Mitigation Plan — a requirement associated with Goal #4 (Public Safety) -Objectives "b"
(Drought Annex) and "e" (Emergency Plan Update).
• The EOC disaster preparedness section is in line with previous years, and has EOC
funding associated with Goal #4 (Public Safety) -Objective "a" (EOC training).
Public Works
This section covers the entire "new" public works department, minus the water and sewer
enterprise funds. With the addition of the maintenance section, and the loss of the planning
section, it is difficult to compare to previous years. It is further complicated by the fact that
many areas are accounted for in their own accounts (street maintenance, street trees, street
lighting, storm drains, etc.) as they must be tracked separately for proper accounting for state
annual reporting. The following comments refer to all the sections of the public works budget.
Page 13 of 218
• Personnel. There are no full -time -equivalent personnel changes. However, we are .001`
achieving some savings by reducing our number of engineers (higher pay) by one, and
adding a less expensive technician. This will require that we use either temporary
employees or consulting services to meet the goals in the City capital improvement
program.
• This budget includes four tons of asphalt a week for seven months of the year for basic
street maintenance, and to complete Goal #2 (Streets) -Objective "d" (Pavement
System).
• This budget includes $6,500 to replace 20% of non -conforming regulatory signs per Goal
#2 (Streets) -Objective "c.ii" (Regulatory Signs).
• Line 6106 of the Streets division budget is the $65K street -sweeping contract, and is
required by the State, primarily due to storm drain requirements.
Community Development
This section covers the newly -established Community Development Department. The following
are some general comments on the Community Development section.
• If we were able to compare year -over -year, this budget would show a significant
increase in personnel costs, around $130K, to account for the three new, part-time
planners, who are making a great difference in the department's efficiency.
• This budget includes $100K for a part-time code enforcement officer(s). We anticipate 100�
starting with one or more part-time code enforcement officers, perhaps two part-timers
with different background strengths, to bring focus to our various areas of code
enforcement deficiency.
• This budget includes $20K for environmental and design components, related to Goal #3
(Land Use Plans) -Objectives "b" (Secondary Unit Ordinance) and "d" (Neighborhood
Design).
• This budget includes a $15K ongoing amount for the proposed City Works planning /
building / work order project tracking system, related to Goal #10 (City Operations) -
Objective "d" (Information Technology).
• This budget includes $100K for planning services. This year we project that line to be
used for Goal #3 (Land Use Plans) -Objective "e" (Downtown Specific Plan). Since it is in
the base budget, this will be a recurring expense line available annually to keep our
various plans up to date, preventing a recurrence of our current 25 years without a
general plan update crisis.
Page 14 of 218
�%w Recreation Department
F1
This section covers the Recreation Department. The Recreation Administration personnel line
has changed substantially, primarily as a result of the departure of the Recreation Director. I do
not intend to hire another Recreation Director. This budget fully funds the Recreation
Department full time administrative technician position. Following are overall comments for
the Recreation Budget:
• The significant increases in part-time pay are directly attributable to the planned 11%
increase in minimum wage — a 25% increase over 2 years. Since the majority of Rec
programs are delivered by part-time employees, Rec program fees and rentals must
increase. The City Council will set these fee levels with the Master Fee Schedule in July
2015.
• The budget includes $5,000 for goal #8 (Quality of Life), objective "g" (Recreation
Program Improvements).
Enterprise Funds
As noted above, the enterprise funds provide less room for maneuver. They are all balanced,
and all appropriately resourced. That said, some particular comments are appropriate:
Harbor Fund: The Harbor Fund is balanced. The recent Tidelands Trust lease audit is
proving effective. One unprojected cost may be a $20-40K capital outlay to meter
electricity and water at the City -operated commercial slips. I intend to spend this from
the unallocated Harbor Equipment Fund
• The budget includes $5,000 for Goal #2 (Streets) -Objective "e" (Bike needs) for
bike racks.
• The budget includes $25,000 for Tidelands Park Fish Cleaning Station
improvements per Goal #6 (Economic Development) -Objective "h" (Projects).
• The budget includes $5,000 for ADA compliance measures at the Harbor Office
per Goal #7(Facilities)-Objective "d" (ADA Compliance).
• This budget includes $5,000 in matching funds to support marketing for the
newly -revitalized Harbor Festival. This year, the Harbor Festival will be free of
charge, and more focused on Harbor and fishing activities, making it an
attractive activity for all Morro Bay residents. I am considering allocating —50-
cents per Morro Bay resident, a total of $5,000, as matching funds for one-time
support of the new Harbor Festival. Funds will be distributed to match
contributions up to $1,000 from existing Tidelands trust leaseholders or
interested Morro Bay businesses. We do not intend to provide direct funding to
the Harbor Festival in future years.
Water and Sewer Rates: With the passage of the water and sewer rate increases, both
the Water and Sewer funds are appropriately funded. We should not need to consider
any unprogrammed, un-voter-approved fee increases until at least 2020. In 2020, to
Page 15 of 218
avoid the mistakes of the past, we must carefully assess revenues against requirements, ,.00�
and consider appropriate increases to hedge against inflation.
Transit Fund: The Transit Fund deserves closer scrutiny. It is balanced, legal, etc., etc. —
but there may be more effective and more efficient ways to provide those services. I
will ask the council to task the staff, in our FY17 budget objectives, to more carefully
assess our transit operations.
Water Fund: The Water Accumulation fund projects $1M in appropriate expenditures.
This fund also has $11VI earmarked for the installation of new / automated meters. We
anticipate contracting for automated meter technology this year, and instead of
committing our $1M to capital, we intend to keep those funds on hand to offset any
expenses that might bear in the first several years of automated metering so we do not
have to pass those expenses on to our customers.
Special Funds
A number of the special funds deserve comment.
• Measure Q Fund: The Measure Q fund anticipates $923K in revenues. Over $550K
of disbursements are planned for street maintenance / repair. In support of Goal #2
(Streets) —Objective "a" (Ballot Measure), we anticipate bringing to council a plan to
finance street repairs with some or all of this Measure Q funding stream. The $550K
of planned disbursements may be the first payment on that financing. The balance
of Measure Q spending goes to Public Safety, with debt service on the fire station
and vacation relief firefighters being the primary recipients.
• County Tourism Marketing District: This budget includes a first -ever section for the
planned County TMD. The City is retaining 2% (the maximum allowed) of
anticipated revenues for City -incurred administrative overhead.
• Morro Bay TBID: - Like the County TBID, the City is retaining 2% for administrative
overhead.
• General Fund Emergency Reserve (GFER) and Risk Management Fund (RMF):
Technically, we will not know the final 30 June 2015 General Fund Emergency
Reserve balance until September 2015. And, since we will use Risk Management
Fund excess to balance the GFER, we won't technically know the ending balance in
the RMF until September 2015. That said, we will have reasonably reliable
projections for both at the end of June 2015. So, while the GFER shows an ending
Page 16 of 218
balance of $3.464M, and the RMAF an ending balance of $1.054M —those numbers
could change significantly based on how the operating fund performs over the next
month. If, however, these numbers held, and, if the council approves the resolution
reducing the RMF-required balance to $100,000, then there could be nearly $.8M
($800k) available for one-time spending this year, while still keeping a very healthy
—$3.5M General Fund Reserve balance on hand.
Conclusion
While the above possibility of $800K of one-time investment may sound rosy, readers should
reread the early long-term challenges and requirement -based budgeting sections of this letter.
That potential $800K of one-time investment would pay for 1/4 of our actual budget
requirement shortfall for one year — then it would be gone.
As directed by the Council in the May 20, 2015 Budget Study Session, staff will invest that
possible $800K in projects validated and prioritized by the Council that may lead to economic
revitalization, business diversity, and balanced growth. If we do that, and if we get serious
about economic diversity and revitalization, then we stand a chance of providing the essential
levels of basic service expected of a city. If we don't, our streets will continue to get worse over
time, we'll have to borrow money we don't have to finance replacement of facilities we must
have, and we'll not meet the fire and police requirements expected of a full -service city. While
we may not yet be facing un-incorporation, we are perhaps only 75% of a full service city.
With all that said, the staff and I are quite optimistic about the future. If Morro Bay were a
stock, we'd be bullish. Morro Bay has amazing potential, and can reach that potential while
maintaining our wonderfully quirky, colorfully unique, beachy, harbory, small-town feel.
avid W. Buckingham
City Manager
1 Attachment - City Council Validated and Prioritized One -Time Investment List
Page 17 of 218
Morro Bay City Council Validated and Prioritized One -Time Investment List
Staff
Contract
Pri Obi # Goal Obiective 1-Time Cost Remarks Approval?
.No,
3.a
Land Use
Plans
GP/LCP
$300,000
300K+100Kin bank + 400K grants =
800K total available
N
6.b
Econ Dev.
MB Economic Strategic
Plan
$75,000
Up to $75K for MB's First Economic
Strategic Plan
Y
Other
City Ops / Plan
City Works
$85,000
85K for City Works Implementation
Y
10.b
City Ops
Vision, Values, Mission
$2,000
2K for public surveys
NA
10.d
City Ops
Information Technology
$100,000
75K for assessment and 25K for FY16
corrections
Y
7.a
Facilities
Old Town Link
$15,000
15K for conceptual designs of
Centennial Parkway
Y
7.b
Facilities
Embarcadero Promenade
$15,000
15K for conceptual design with
public input
Y
8 7.d
Facilities
ADA Compliance
$100,000
25K for ADA Assessment, 25K for
work.
Y
9 2.b
Streets
Traffic Management
$25,000
25K for Traffic Calming Projects
Y
10 10.e
City Ops
Public Information
$6,000
Monthly water bill mailers to
improve public info
NA
11 2.d
Streets
Pavement Management
$25,000
25K for PM Plan Update
Y
12 6.c
Econ Dev.
High -Speed Fiber
$150,000
150K placeholder
N
7.c
Facilities
Parking
$120,000
120K placeholder for metered
parking and parking lot acquisition
N
Other
Facility Capital Reqts
Assessment
$50,000
Professional survey of long term
maintenance and capital
replacement of all city buildings
Y
7.g
Facilities
Sidewalk Improvement
$100,000
100K fix sidewalk problem areas
N
2.e
Streets
Unmet Bike Needs
$15,000
15K for bike racks and / or other
needs
Y
7.e
Facilities
PD Needs Assessment
$9,000
9K for PD Needs Assessment
Y
7.k
Facilities
Way -Finding Signs
$20,000
20 new signs
N
7.i
Facilities
Street Signs
$15,000
15K for new design and 100 signs
N
8.e
QOL
QOL Survey
$20,000
Professional QOL Survey
Y
Page 18 of 218
Elected Officials
Jamie Irons
Noah Smukler
John Headding
Christine Johnson
Matt Makowetski
City Officials
David Buckingham
Joseph Pannone
Eric Endersby
Scot Graham
Robert Livick
Amy Christey
Steve Knuckles
Susan Slayton
Dana Swanson
Sam Taylor
Planning Commission
Robert Tefft
Katherine Sorenson
Michael Lucas
Gerald Luhr
Richard Sadowski
CITY OF MORRO BAY
ELECTED AND CITY OFFICIAL
COMMISSIONS, BOARDS, AND COMMITTEES
Title
Mayor
Mayor Pro Tempore
Councilmember
Councilmember
Councilmember
Position
City Manager
City Attorney
Term Expires
November 2016
November 2016
November 2018
November 2018
November 2016
Harbor Director
Community Development Manager
Public Works Director
Police Chief
Fire Chief
Administrative Services Director
City Clerk
Deputy City Manager
Public Works Advisory
Board
Chair
Marlys McPherson
Chair
Vice -Chair
Stephen Shively
Vice -Chair
Commissioner
Janith Goldman
Commissioner
Commissioner
Deborah Owens
Commissioner
Commissioner
Christopher Parker
Commissioner
Stewart Skiff
Commissioner
David Sozinho
Commissioner
Morro Bay Tourism Business Improvement District Harbor Advisory Board
Joan Solu
Chair
William Luffee
Chair
Jack Smith
Vice -Chair
Dana McLish
Vice -Chair
Roger Corwin
Member
Alan Alward
Member
Michele Jacquez
Member
Gene Doughty
Member
Taylor Newton
Member
Neal Maloney
Member
Fred Reed
Member
Lynn Meissen
Member
Vacant
Member
Ron Reisner
Member
Recreation and Parks Commission
Drew Sidaris
Chair
Tom Coxwell
Vice -Chair
Jeffrey Cox
Commissioner
Karen Croley
Commissioner
Al Romero
Commissioner
Robert Swain
Commissioner
Vacant
Commissioner
Citizens Finance Committee
Betty Forsythe
Member
Gregory Head
Member
Marlys McPherson
Member
Susan Schneider
Member
Barbara Spagnola
Member
Page 19 of 218
CITY OF MORRO BAY
ELECTED AND CITY OFFICIALS
COMMISSIONS, BOARDS, AND COMMITTEES
Planning Commission
Public Works Advisory
Board
Robert Tefft
Chair
Marlys McPherson
Chair
Katherine Sorenson
Vice -Chair
Stephen Shively
Vice -Chair
Michael Lucas
Commissioner
Janith Goldman
Commissioner
Gerald Luhr
Commissioner
Deborah Owens
Commissioner
Richard Sadowski
Commissioner
Christopher Parker
Commissioner
Stewart Skiff
Commissioner
David Sozinho
Commissioner
Water Reclamation Facility Citizen
Advisory Committee (WRFCAC)
John Diodati
Chair
Bill Woodson
Vice -Chair
Paul Donnelly
Member
Mary (Ginny) Garelick
Member
Dale Guerra
Member
Valerie Levulett
Member
Barbara Spagnola
Member
Richard Sadowski
Planning Commission
Appointee
Steven Shively
PWAB Appointee
General Plan/Local Coastal Program
Advisory Board (GPAC)
Rich Buquet
Member
Robert Davis
Member
Janith Goldman
Member
Christine Rogers
Member
Susan Schneider
Member
Glenn Silloway
Member
Melani Smith
Member
Susan Stewart
Member
Robert Tefft
Member
Page 20 of 218
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CITY OF MORRO BAY
STAFFING LEVELS - HISTORICAL, CURRENT AND PROJECTED
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
GENERALFUND:
City Council
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
City Manager
3.00
3.00
5.00
5.00
5.00
4.00
5.00
5.00
Personnel
2.00
2.00
-
-
-
-
-
-
City Attorney
-
-
1.00
1.75
1.75
1.75
1.75
1.75
Finance Department
6.00
6.00
6.00
6.00
6.00
5.00
5.00
5.00
Information Services
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Police Department
26.50
26.50
26.50
26.50
26.50
24.50
23.50
23.50
Fire Department
11.00
11.00
11.00
11.00
11.00
11.00
11.00
11.00
Public Services Administration
14.00
14.00
14.00
14.00
14.00
11.00
10.00
10.00
Vehicle Maintenance
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Street Maintenance
3.00
3.00
3.00
3.00
3.00
2.00
2.00
2.00
Recreation and Parks Administration
2.00
2.00
2.00
2.00
2.00
2.00
1.00
1.00
Recreation Programs
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Recreation and Parks Facilities
5.00
5.00
5.00
5.00
5.00
4.00
4.00
4.00
Parks Maintenance
6.00
6.00
6.00
6.00
6.00
4.00
4.00
4.00
Cloisters Assessment District
-
-
-
-
-
1.50
1.50
1.50
Grant -funded temporary positions - PD
1.00
1.00
2.00
2.00
1.00
-
-
-
Measure Q-funded SRO
-
-
-
-
-
Measure Q-funded firefighter
-
-
-
-
-
-
-
-
ENTERPRISE FUNDS:
Water Revenue Fund
5.00
5.00
5.00
5.00
5.00
8.00
8.00
8.00
Sewer Revenue Fund
3.00
3.00
3.00
3.00
3.00
3.00
4.00
4.00
Harbor Fund
6.50
7.50
7.50
7.50
7.50
7.50
8.00
8.00
MB/CSD Wastewater Treatment Plant
7.00
7.00
8.00
8.00
8.00
8.00
8.00
8.00
TOTAL STAFF MEMBERS
111.00
112.00
115.00
115.75
114.75
107.25
106.75
106.75
2008 09 2009 10 2010/11 2011 12 2012 13 2013/14 2014/15 2015/16
GENERALFUND:
City Council
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
City Manager
3.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Deputy City Manager
1.00
City Attorney
1.75
1.75
1.75
1.75
2.00
2.00
1.00 9
1.00
Finance Department
4.00
4.00
3.00
3.00
3.00
3.00
3.00
4.00
Human Resources
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Information Services
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Police Department
18.50
18.50
18.00
17.00
17.00
17.00
17.00
17.00
City-wide Communications
5.00
5.00
5.00
5.00
5.00
5.00
5.00
2.00
Fire Department
11.00
11.00
10.50
10.50
10.50
10.50
11.50 9
11.50
Public Works Department
9.00
11.00
9.75
9.75
9.75
9.75
9.75
7.00 #
Vehicle Maintenance
1.00
1.00
1.00
Street Maintenance
2.00
2.00
2.00
Facilities
3.00
3.00
3.00
Parks Maintenance
3.50
3.50
3.50
Consolidated Maintenance Division
-
-
-
9.50
10.00
10.00
10.00
9.00
Recreation and Parks Administration
3.00
3.00
2.00
2.00
2.00
2.00
2.00
-
Recreation Programs
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Cloisters Assessment District
1.50
1.50
1.50
1.50
-
-
-
-
Community Development Department
-
-
-
-
-
-
-
5.00 #
Measure Q-funded SRO
-
-
1.00
1.00
1.00
1.00
1.00
Measure Q-funded firefighter
-
1.00
1.00
1.00
1.00
1.00
1.00
1.00
ENTERPRISE FUNDS:
Water Revenue Fund
8.50
7.50
7.50
7.50
7.38
7.50
7.50
5.50
Sewer Revenue Fund
4.50
4.50
4.50
5.50
5.37
5.50
5.50
5.50
Harbor Fund
8.00
8.00
8.00
7.75
7.00
7.00
7.00
7.00
MB/CSD Wastewater Treatment Plant
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
TOTAL STAFF MEMBERS
104.25
105.25
101.00
101.75
100.00
100.25
100.25
96.50
1 Finance Account Clerk III paid for by Water and Sewer (50-50 split)
2 Layoffs 2010/11
3 Consolidated Maintenance Division formed during FY 2010/11 - Streets, Parks, Facilities, Vehicle Maintenance
4 School Resource Officer funded 25% by the City, 75% by the San Luis Coastal Unified School District
5 3/4 time OA IV in City Attorney's division promoted to full-time Legal Assistant; Account Clerk I Utility Billing clerk hired 3/4 time and
paid by Water and Sewer (50-50 split)
6 Maintenance position vacated due to retirement, and not refilled; 50% allocation moved to Consolidated Maintenance Div, Parks
7 At the July 10, 2012 meeting, the City Council changed the Harbor Business Manager to a Business Coordinator, and
eliminated the 3/4 time CA IV position
8 2013/14 staffing increase of Utility Billing clerk to full-time; SRO funded at 63% by Measure Q due to funding cut by
San Luis Coastal Unified School District
9 2014/15 staffing changes: Additions - 1 Firefighter; Reductions - City Attorney
a 2015/16 changes: Public Services renamed to Public Works; establishment of Community Development Department
Page 22 of 218
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RESOLUTION NO.31-15
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MORRO BAY, CALIFORNIA
ADOPTING THE 2015/16 FISCAL YEAR OPERATING 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 day-to-day business activities of the City; and
WHEREAS, the Morro Bay City Council finds, and determines, these appropriations 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, 2015; 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; and
WHEREAS, Section 37208 of the California Government Code provides that payments
or demands, conforming to an approved budget adopted by Ordinance or Resolution, do not
require audit by the City Council, prior to payment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California:
1. The Fiscal Year 2015/16 Operating 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; and
The City Manager is authorized to transfer appropriations within the adopted budget, so
long as those changes do not have a significant policy impact, and total appropriations are
not exceeded; and
4. City Council approval is required to transfer appropriations between funds, capital
projects, or capital outlay items; 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, 2015, to the Capital
Improvement Project Fund(s) for the 2015/16 fiscal year; and
Page 25 of 218
Resolution No. 31-15
Page 2
6. City Council approval is required for any proposed increase to the number of Ca1PERS-
benefited, budgeted positions hired; and
7. City Council chooses to continue to defer the remaining 1.5% of the 2009/10 deferral of
the management and executive employees' 3% Cost -of -Living Adjustment (COLA);
8. Per 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
9. The City Council reduced the amount of General Fund support to the Morro Bay Tourism
Bureau, and other outside funding requests, with its 2015/16 budget, and will continue to
do so with future budgets.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular
meeting thereof held on the 9th day of June, 2015, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAMIE L. IRONS, Mayor
ATTEST:
DANA SWANSON, City Clerk
Page 26 of 218
Resolution NO.31-15
Page 3
Amendments to the 2015/16 Adopted Budget Document
1. TBD
Page 27 of 218
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2015/16 PROPOSED 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.
Page 31 of 218
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N
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GENERAL FUND REVENUES BY SOURCE
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Property taxes
Current secured net of admin fee
$ 2,404,632 $
2,418,684 $
2,520,700
$ 2,541,147
$ 2,707,430
Property tax in -lieu - VLF
814,293
809,214
837,251
837,251
830,137
Property tax in -lieu - Sales Tax
356,048
364,472
447,649
364,930
221,566
Homeowners subvention
19,664
19,148
19,076
18,778
18,535
Subtotal
3,594,637
3,611,518
3,824,676
3,762,106
3,777,668
Other taxes
Sales and use tax
1,063,056
1,154,885
1,189,656
1,160,000
1,460,913
Sales tax Prop 172 Public Safety
118,582
131,214
156,783
120,000
122,400
Property transfer tax
47,366
65,324
69,485
60,000
61,200
Transient occupancy tax
2,027,448
2,235,255
2,527,352
5 2,350,000
2,871,253
Franchises
512,669
513,304
505,658
480,000
507,000
Subtotal
3,769,121
4,099,982
4,448,934
4,170,000
5,022,766
Licenses and permits
Business/transient vendor license
222,990
230,145
248,181
455,000
556,000
Coastal permits
9,619
25,363
32,336
35,000
26,000
Conditional use permits
30,522
10,781
11,599
15,000
25,000
Other licenses and permits
10,793
8,079
12,906
10,856
10,500
Subtotal
273,924
274,368
305,022
515,856
617,500
Intergovernmental
Motor vehicle tax
5,248
5,438
4,500
-
4,500
State & Federal grants
42,440
-
64,278
5,000
3,400
State reimbursements
24,538
18,068
21,092
17,000
17,000
Subtotal
72,226
23,506
89,870
22,000
24,900
Use of money and property
Investment income/rents
323,196
323,595
281,361
292,400
292,400
Subtotal
323,196
323,595
281,361
292,400
292,400
Fines & forfeitures
Parking fines
10,382
6,660
5,799
6,000
3,000
Vehicle code fines
8,605
6,839
9,843
7,000
7,000
Other fines
5,194
6,623
5,085
5,000
2,000
Subtotal
24,181
20,122
20,727
18,000
12,000
Charges for services
Community development
299,588
239,739
279,854
244,140
335,300
Police services
10,852
22,312
28,164
28,600
23,600
Fire services
97,796
116,409
188,549
218,060
114,199
Recreation program revenues
422,142
403,589
534,721
464,500
622,000
Other service charges
54,432
65,575
9,050
1,000
24,932
Subtotal
884,810
847,624
1,040,338
956,300
1,120,031
Other revenues
18,005
32,979
28,624
12,650
7,000
Subtotal general fund revenues
8,960,100
9,233,694
10,039,552
9,749,312
10,874,265
Transfers in
1,253,946
3,227,099
2,451,361
1,209,755
1,181,011
TOTAL GENERAL FUND REVENUES
AND TRANSFERS IN
$ 10,214,046 $
12,460,793 $
12,490,913
$ 10,959,067
$ 12,055,276
Page 34 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GENERAL FUND EXPENDITURES BY DEPARTMENT
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
LEGISLATIVE
City Council
$ (88,088)
$ (82,695) $
(206,485)
$ (106,926)
$ (110,312)
Subtotal
(88,088)
(82,695) Z
(206,485)
(106,926)
(110,312)
ADMINISTRATION
City Manager
(442,681)
(482,253)
(596,479)
(441,488)
(478,333)
Deputy City Manager
-
-
-
(13,340)
(160,000)
Contract Services
(44,661)
(52,745)
(32,988)
(47,154)
(52,031)
Elections
(161408)
(409)
(28,393)
(19,954)
(10,310)
Subtotal
(503,750)
(535,407)
(657,860)
(521,936)
(700,674)
CITY ATTORNEY
Operations
(1371793)
(154,270)
(361,394)
(188,659)
(182,458)
Subtotal
(137,793)
(154,270)
(361,394)
(188,659)
(182,458)
ADMINISTRATIVE SERVICES
Accounting and Treasury
(467,998)
(527,273)
(567,712)
(513,009)
(622,975)
Human Resources
(132,436)
(140,364)
(139,637)
(149,312)
(153,860)
Subtotal
(600,434)
(667,637)
(707,349)
(662,321)
(776,835)
POLICE DEPARTMENT
Operations
(2,866,634)
(2,778,032)
(2,776,683)
(3,055,156)
(3,032,060)
Support Services
(4251235)
(460,703)
(425,149)
(461,133)
(468,744)
Subtotal
(3,291,869)
(3,238,735)
(3,201,832)
(3,516,289)
(3,500,804)
FIRE DEPARTMENT
Operations
(1,983,157)
(1,872,727)
(2,059,428)
(2,135,961)
(2,288,069)
Emergency Operations Center (EOC)
(1,802)
(2,518)
(8,238)
(8,800)
(8,041)
Subtotal
(1,984,959)
(1,875,245)
(2,067,666)
(2,144,761)
(2,296,110)
COMMUNITY DEVELOPMENT
Administration
-
-
-
-
4 (888,928)
Subtotal
-
-
-
-
(888,928)
PUBLIC WORKS
Administration
(866,160)
(835,931)
(934,210)
(932,633)
(377,027)
Consolidated Maintenance
(965,185)
(997,790)
(1,064,878)
(1,053,215)
(1,086,113)
Streets, Street Trees, Storm Drains
(454,470)
(422,318)
(420,694)
(454,828)
(521,380)
Street Lighting
(99,083)
(90,975)
(83,355)
(89,223)
(104,000)
Curbside Recycling
(20,000)
(21,000)
(22,940)
(22,940)
(23,832)
Subtotal
(2,404,898)
(2,368,014)
(2,526,077)
(2,552,839)
(2,112,352)
RECREATION SERVICES
Administration
(342,081)
(323,212)
(297,945)
(358,829)
(176,713)
Sports
(307,105)
(319,869)
(324,596)
(318,575)
(351,061)
Youth and Teen Programs
(388,074)
(363,208)
(373,307)
(377,798)
(403,540)
Dance 39+
(11,608)
(11,642)
(13,212)
(12,000)
(12,000)
Special Events Signage
(5,110)
(2,235)
(4,092)
(3,000)
(5,000)
Subtotal
(1,053,978)
(1,020,166)
(1,013,152)
(1,070,202)
(948,314)
SUBTOTAL GENERAL FUND ESTIMATES
(10,065,769)
(9,942,169)
(10,741,815)
(10,763,933)
(11,516,787)
Personnel vacancy rate
-
-
-
-
262,099
Page 35 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GENERAL FUND EXPENDITURES BY DEPARTMENT
.■/
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Transfers out:
Capital improvement (828,092) (1,492,417) (2,486,752) -
Visitors Center - - - - (50,000)
Information Technology ISF - - - - (325,489)
Vehicle replacement - - - - (75,000)
Capital Replacement ISF - - - - (75,000)
Projects Reserve ISF - - - - (200,000)
TOTAL GENERAL FUND ESTIMATES $ (10,893,861) (11,434,586) - (13,228,567) - (10,763,933) (11,980,177)
REVENUES 12,055,276
SURPLUS(SHORTFALL) $ 75,099
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.
' The 2014/15 Police budget reflects an offset from the San Luis Coastal Unified School District for 50% funding of the SRO ($60,000)
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.
Page 36 of 218
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CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
CITY COUNCIL
2014115
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (72,818) $
(65,426) $
(70,664) $
(63,402) $
(68,821)
Supplies
(122)
(1,100)
(178)
(850)
(500)
Services
(15,148)
(16,169)
(47,643)
(35,674)
(33,491)
Contingency
-
-
-
-
-
Capital outlay
-
-
-
-
-
One-time bequests
-
-
(88,000)
(7,000)
(7,500)
Equipment replacement
-
-
-
-
-
Total expenditures
(88,088)
(82,695)
(206,485)
(106,926)
(110,312)
Total revenues
-
-
1,581
-
-
Revenues over(under) expenditures $ 88,088 $ (82,695) $ (204,904) $ 106,926 $ 110,312
NOTES:
At the June 12, 2013 budget workshop, the City Council removed $2,000 from its services budget that had been
programmed for a leadership seminar. This money will be added to the funds collected for outside agencies who
who submitted requests for funding. Bequests are as follows:
Friends of the Library $ 5,000
Housing Trust Fund 1,000 This amount came out of the Affordable Housing Fund
Morro Bay Tourism Bureau 58,000
Economic Vitality Bureau (EVC) 5,000
Downtown restroom 16,000
Morro Bay 4th of July 4,000
$ 89,000
With the 2013/14 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.
With the adoption of the 2014/15 budget, Council granted the following bequests:
Housing Trust Fund $ 1,000 This amount came out of the Affordable Housi
SCORE 1,000
Senior Nutrition 5,000
$ 7,000
With the adoption of the 2015/16 budget, Council granted the following bequests:
SLO County Housing Trust Fund $ 1,000
Community Resource Office 1,000
SCORE 500
Senior Nutrition 5,000
$ 7,500
Page 38 of 218
In
vr/
11
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
CITY MANAGER/CITY CLERK
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (318,032) $
(329,584) $
(491,474) $
(340,479) $
(321,695)
Supplies
(10,268)
(21,091)
(4,448)
(6,100)
(7,950)
Services
(101,720)
(119,016)
(100,557)
(94,909)
(118,688)
Capital outlay
Other
(12,661)
(12,562)
-
-
(30,000)
Equipment replacement
Total expenditures
(442,681)
(482,253)
(596,479)
(441,488)
(478,333)
Total revenues
-
-
-
-
6,000
Revenues over(under) expenditures
$ 442,681 $ I ,253 $ 596,479 $
441,488 $
472,333
NOTES:
With the 2013/14 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 2013/14, the City Manager was separated from employment, and payout cost is reflected in the increased personnel
services category.
Page 39 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
CONTRACT SERVICES
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Services:
Fiscal Management Fees (PARS) $ - $ (6,744) $ (6,922) $ (8,000) $ (7,000)
Animal services (44,661) (46,001) (26,066) (39,154) (45,031)
Total expenditures $ 44,661) $ (52,745) $ (32,988) $ 47,1541 $ 52,031
NOTES:
With the 2013/14 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.
M
•a00
Page 40 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
ELECTIONS
2014/15
2015/16
2011/12 2012/13
2013/14
Amended
Proposed
Actual Actual
Actual
Budget
Budget
Supplies $ (272) $ (409)
$ (293)
$ (454)
$ (310)
Services 16,136 -
(28,100)
19,500
10,000
Total expenditures $ 16,408 $ (409)
$ (28,393)
$ 19,954
$ 10,310
NOTES:
With the 2015/16 budget, the decision was made to budget $10,000 per year, moving the fund into a Trust and Agency accour
to save/pay for election costs.
Page 41 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
Personnel services
Supplies
Services
Capital outlay
Other
Equipment replacement
Total expenditures
Total revenues
Revenues over(under) expenditures
NOTES:
Position created and filled June 2015.
DEPUTY CITY MANAGER
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ - $ - $ - $ (12,055) $ (144,638)
- - (85) (1,000)
- - (1,200) (14,362)
(13,340) (160,000)
$ - $ - $ - $ 13,340 $ 160,000
Page 42 of 218
.N.
.ow
F5
M
Personnel services
Supplies
Services
Capital outlay
Other
Equipment replacement
Total expenditures
Total revenues
Revenues over(under) expenditures
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
CITY ATTORNEY
2011/12 2012/13 2013/14
Actual Actual Actual
$ (113,150) $ (122,731) $ (283,630) $
(4,512)
(4,875)
(3,353)
(20,131)
(26,664)
(74,411)
(137,793)
(154,270)
(361,394)
6,370
30
458
2014/15
2015/16
Amended
Proposed
Budget
Budget
(61,588) $
(49,257)
(1,626)
(1,500)
(125,445)
(131,701)
(188,659) (182,458)
$ _CIL,4231 $ (154,240) $ (360,936) $ 188,659 $ 182,458
NOTES:
In 2013/14, the City Attorney was separated from employment, and payout cost is reflected in the increased personnel
services category.
In April 2014, the City employed Aleshire & Wynder to provide contract legal services. The cost of those services
is split between the General Fund (40%), Water (20%), Sewer (20%) and Harbor (20%).
Page 43 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
FINANCE
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (306,864) $
(355,842) $
(362,304) $
(345,998) $
(445,466)
Supplies
(15,412)
(41,378)
(6,520)
(15,675)
(9,375)
Services
(140,182)
(111,728)
(188,888)
(151,336)
(168,134)
Capital outlay
(5,540)
(18,325)
(10,000)
-
-
Other
-
-
-
-
-
Equipment replacement
-
-
-
-
-
Total expenditures
(467,998)
(527,273)
(567,712)
(513,009)
(622,975)
Total revenues
7,623,306
7,999,936
8,558,420
8,211,106
9,636,934
Revenues over(under) expenditures $ 7,155,308 $ 7,472,663 $ 7,990,708 $ 7,698,097 $ 9,013,959
NOTES:
In 2011/12, the capital outlay is for the New World Systems mandatory software upgrade; the budgeted amount no,
covers the trainer's travel expenses and training hours.
In 2012/13, the capital outlay is for remainder of the New World Systems mandatory software upgrade; the
budgeted amount covers software plus training.
In 2013/14, the capital outlay is for a New World Systems mandatory software upgrade; the budgeted
amount covers software plus training.
R
Page 44 of 218
CITY OF MORRO BAY
2015/ 16 PROPOSED BUDGET
HUMAN RESOURCES
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (76,369) $
(76,198) $
(84,874) $
(110,114) $
(117,387)
Supplies
(2,369)
(2,014)
(1,678)
(1,998)
(2,223)
Services
(33,661)
(36,309)
(35,714)
(17,200)
(34,250)
Capital outlay
-
-
-
-
-
Other - recruitment
(20,037)
(25,843)
(17,371)
(20,000)
Equipment replacement
-
-
-
-
-
Total expenditures
(132,436)
(140,364)
(139,637)
(149,312)
(153,860)
Total revenues
211
279
-
-
-
Revenues over(under)expenditures
$ _CIL,2251 $ (140,085) $ (139,637) $
149,312 $
153,860
NOTES:
For the 2014/15 fiscal year, the contract for negotiations services was canceled; negotiations were conducted
by in house staff.
Page 45 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
INFORMATION SERVICES
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (120,605) $
(124,261) $
(124,769) $
(134,633) $
(132,416)
Supplies
(8,192)
(14,551)
(1,824)
(8,050)
-
Services
(19,171)
(14,247)
(16,330)
(28,444)
(49,443)
Capital outlay
-
-
-
(25,000)
-
Other
-
-
-
-
(145,630)
Equipment replacement
-
-
-
-
-
Total expenditures
(147,968)
(153,059)
(142,923)
(196,127)
(327,489)
Total revenues
-
9,967
-
-
-
Revenues over(under) expenditures $ 147,968 $ (143,092) $ (142,923) $ (196,127 $ 327,489
NOTES:
With the 2014/15 budget, capital outlay is for a DC Power Station, which supplies electrical power up to 24 hours in the event c
an outage, and additional Blade servers.
With the 2015/16 budget, capital replacements for all divisions have been added. This capital amount will be placed in an
Internal Service Fund for Information Services.
M
Page 46 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
POLICE DEPARTMENT
2014/15
2015/16
2011/12 2012/13
2013/14
Amended
Proposed
Actual Actual
Actual
Budget
Budget
Personnel services $ (2,551,156) $ (2,478,541) $
(2,463,834) $
(2,777,041) $
(2,740,173)
Supplies (112,054) (127,533)
(99,955)
(94,200)
(89,300)
Services (197,704) (146,833)
(195,958)
(159,315)
(177,587)
Capital outlay - (270)
Other (5,720) (24,855)
(16,936)
(24,600)
(25,000)
Equipment replacement
Total expenditures (2,866,634) (2,778,032)
(2,776,683)
(3,055,156)
(3,032,060)
Total revenues 70,020 83,536
69,266
65,750
53,600
Revenues over(under) expenditures $ (2,796,614) $ (2,694,496) $
(2,707,417) $
(2,989,406) $ (2,978,460)
NOTES:
In 2011/12, the City entered into an agreement with the San Luis Coastal Unified School District to employ a School
�W Resources Officer. The SRO is a City employee, and is paid 75% by the School District and 25% by the City with
Measure Q funds. This position is funded on a yearly basis.
In 2012/13, the departmental budget includes funding of $20,000 for the County Narcotics and Gang Task Force
In 2013/14, the SRO was funded at 37% by the School District and 63% by the City.
In 2014/15, the SRO was funded at 50% by the School District and City.
In 2015/16, the SRO was funded at 50% by the School District and City.
a
Page 47 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
POLICE SUPPORT SERVICES DIVISION (FORMERLY COMMUNICATIONS)
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (401,823) $
(428,048) $
(401,098) $
(421,385) $
(207,366)
Supplies
(6,039)
(6,818)
(5,243)
(4,200)
(750)
Services
(7,499)
(14,528)
(12,063)
(20,548)
(258,019)
Capital outlay
-
-
-
-
-
Other
(9,874)
(11,309)
(6,745)
(15,000)
(2,609)
Equipment replacement
-
-
-
-
-
Total expenditures
(425,235)
(460,703)
(425,149)
(461,133)
(468,744)
Total revenues
Revenues over(under) expenditures $ 425 235 $ (460,703) $ 425 149 $ 461 133 $ 468 744
NOTES:
In October 2014, Police and Fire dispatch services were consolidated with San Luis Obispo County (Sheriff/Cal Fire). 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 Sheriffs contract for emergency dispatch services, which is offset by the reduct
in personnel costs.
Page 48 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
FIRE DEPARTMENT
2014/15
2015/16
2011/12
2012113
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (1,759,193) $
(1,677,482) $
(1,809,493) $
(1,919,843) $
(1,960,571)
Supplies
(126,479)
(107,055)
(110,941)
(113,012)
(94,351)
Services
(96,485)
(87,190)
(97,476)
(100,606)
(228,147)
Capital outlay
-
-
(40,518)
-
-
Other
(1,000)
(1,000)
(1,000)
(2,500)
(5,000)
Equipment replacement
Total expenditures
(1,983,157)
(1,872,727)
(2,059,428)
(2,135,961)
(2,288,069)
Total revenues
183,097
141,441
257,199
231,416
118,199
Revenues over(under) expenditures $ (1,800,060) $ (1,731,286) $ (1,802,229) $ (1,904,545) $ (2,169,870)
NOTES:
In 2014/15, an 11th firefighter position was added.
In October 2014, Police and Fire dispatch services were consolidated with San Luis Obispo County (Sheriff/Ca I Fire). The
increase in services is primarily due to the CalFire emergency dispatch contract.
Page 49 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
EOC DISASTER PREPAREDNESS
2014/15
2015/16
2011/12
2012113
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ - $
- $
-
$ -
$ -
Supplies
-
(170)
(6,091)
(6,050)
(4,150)
Services
(1,802)
(2,348)
(2,147)
(2,750)
(3,891)
Capital outlay
-
-
-
-
Other
-
-
-
-
Equipment replacement
Total expenditures
(1,802)
(2,518)
(8,238)
(8,800)
(8,041)
Total revenues
Revenues over(under) expenditures $ (1,802) $ (2,518) $ (8,238) $ (8,800) $
NOTES:
In 2013/14, 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 2014/15, staff budgeted for a nuclear planning grant in the amount of $5,000. If the grant is awarded,
staff will purchase secondary EOC supplies.
Page 50 of 218
.move
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
PUBLIC WORKS DEPARTMENT (FORMERLY PUBLIC SERVICES)
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (720,482) $
(703,799) $
(719,264) $
(774,033)
$ (294,739)
Supplies
(24,189)
(29,613)
(22,376)
(29,500)
(16,925)
Services
(121,489)
(102,519)
(192,570)
(129,100)
(65,363)
Capital outlay
-
-
-
-
-
Other
-
-
-
-
-
Equipment replacement
-
-
-
-
-
Total expenditures
(866,160)
(835,931)
(934,210)
(932,633)
(377,027)
Total revenues
529,998
477,433
567,978
736,200
-
Revenues over(under) expenditures
$ (336,162) $ (358,498) $ (366,232) $ (196,433)
$ 377,027
NOTES:
At the 2013/14 mid -year budget review, the Permit Technician position was restored to full-time.
With the 2015/16 budget, the Public Services Department was split into Community Development and Public Works.
Page 51 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
PUBLIC WORKS - CONSOLIDATED MAINTENANCE DIVISION
VEHICLE, PARKS AND FACILITIES MAINTENANCE
2014/15
2015/16
2011112
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (660,480) $
(655,268) $
(700,288) $
(750,310) $
(748,757)
Supplies
(81,282)
(100,061)
(97,446)
(74,334)
(70,071)
Services
(223,423)
(206,383)
(267,144)
(228,571)
(267,285)
Capital outlay
-
(36,078)
-
-
-
Other
-
-
-
-
-
Equipment Replacement
-
-
-
-
-
Total expenditures
(965,185)
(997,790)
(1,064,878)
(1,053,215)
(1,086,113)
Total revenues
18,874
17,207
21,750
17,400
17,400
Revenues over(under) expenditures $ (946,311) $ (980,583) $ (1,043,128) $ (1,035,815) $ (1,068,713)
NOTES:
In February 2015, the Consolidated Maintenance Division oversight was transferred to the Public Works Director.
Page 52 of 218
M
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
PUBLIC WORKS - CONSOLIDATED MAINTENANCE
STREETS MAINTENANCE DIVISION
Personnel services
Supplies
Services
Capital outlay
Other
Equipment replacement
Total expenditures
Total revenues
Revenues over(under) expenditures
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ (131,526) $ (149,825) $ (119,515) $ (130,931) $ (132,894)
(49,038) (32,227) (44,684) (35,200) (47,752)
(100,738) (80,216) (81,725) (82,103) (87,656)
(281,302) (262,268) (245,924) (248,234) (268,302)
295 89 3,538 - -
$ __2§L,0071 $ (262,179) $ (242,386) $ 248,234 $ 268,302
NOTES:
In February 2015, the Consolidated Maintenance Division oversight was transferred to the Public Works Director.
Page 53 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
PUBLIC WORKS - CONSOLIDATED MAINTENANCE
STREET TREES MAINTENANCE DIVISION
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (34,411) $
(31,884) $
(37,605) $
(58,207) $
(70,513)
Supplies
(506)
(14,803)
(1,522)
(6,250)
(9,050)
Services
(37,498)
(29,364)
(35,382)
(31,149)
(38,649)
Capital outlay
-
-
-
-
-
Other
-
-
-
-
-
Equipment replacement
-
-
-
-
-
Total expenditures
(72,415)
(76,051)
(74,509)
(95,606)
(118,212)
Total revenues
Revenues over(under) expenditures $ 72,415 $ (76,051) $ (74,509) $ 95,606 $ 118,212
NOTES:
In February 2015, the Consolidated Maintenance Division oversight was transferred to the Public Works Director.
M
Page 54 of 218
Eq
Im
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
STREET LIGHTING
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services $ -
$ (133)
$ -
$ -
$ -
Supplies -
-
(7,971)
-
-
Services 99,083
(90,842)
(75,384)
89,223
104,000
Total expenditures $ 99,083
$ (90,975)
$ (83,355)
$ 89,223
$ 104,000
Page 55 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
PUBLIC WORKS - CONSOLIDATED MAINTENANCE
STORM DRAINS/CREEK CLEARING MAINTENANCE DIVISION
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (74,470) $
(57,776) $
(78,329) $
(78,510) $
(94,588)
Supplies
(5,662)
(1,935)
(1,552)
(15,500)
(15,500)
Services
(20,621)
(24,288)
(20,380)
(16,978)
(24,778)
Capital outlay
-
-
-
-
-
Other
-
-
-
-
-
Equipment replacement
-
-
-
-
-
Total expenditures
(100,753)
(83,999)
(100,261)
(110,988)
(134,866)
Total revenues
Revenues over(under) expenditures $ 100,753 $ (83,999) $ (100,261) $ 110,988 $ 134,866
NOTES:
In February 2015, the Consolidated Maintenance Division oversight was transferred to the Public Works Director.
Page 56 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
CURBSIDE RECYCLING
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ - $
(21,000) $
(22,940) $
(22,940) $
(23,832)
Supplies
20,000
-
-
-
-
Total expenditures
(20,000)
(21,000)
(22,940)
(22,940)
(23,832)
Total revenues
20,797
22,569
22,983
22,940
23,832
Revenues over(under) expenditures
$ 797 $
1,569 $
43 $
- $
-
Page 57 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET ""
RECREATION DEPARTMENT - ADMINISTRATION
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (300,554) $
(287,567) $
(269,576) $
(312,084) $
(128,703)
Supplies
(4,971)
(7,458)
(6,263)
(6,850)
(4,200)
Services
(30,556)
(28,187)
(22,106)
(39,895)
(43,810)
Capital outlay
Other
(6,000)
-
-
-
-
Equipment replacement
Total expenditures
(342,081)
(323,212)
(297,945)
(358,829)
(176,713)
Total revenues
153,705
131,809
132,651
124,000
160,081
Revenues over(under) expenditures $ 188,376 $ (191,403) $ (165,294) $ 234,829 $ 16,632
NOTES:
In 2011/12, the $10,000 increase in revenues is due to the redirection of revenue from the Youth Services
and Teen Programs Division.
In 2012/13, 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.
For the 2015/16 budget, no Director position has been included.
Page 58 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
RECREATION DEPARTMENT - DANCE 39+
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Services
$ (11,608) $
(11,642) $
(13,212) $
(12,000) $
(12,000)
Other
-
-
-
-
-
Total expenditures
(11,608)
(11,642)
(13,212)
(12,000)
(12,000)
Total revenues
14,650
14,012
15,794
12,000
14,400
Revenues over(under) expenditures
$ 3,042 $
2,370 $
2,582 $
- $
2,400
Page 59 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
RECREATION DEPARTMENT - SPORTS
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (224,337) $
(226,820) $
(210,971)
$ (214,407)
$ (226,815)
Supplies
(49,443)
(54,591)
(64,492)
(58,000)
(80,600)
Services
(33,325)
(38,458)
(49,133)
(46,168)
(43,646)
Capital outlay
-
-
-
-
-
Other
-
-
-
-
-
Equipment replacement
-
-
-
-
-
Total expenditures
(307,105)
(319,869)
(324,596)
(318,575)
(351,061)
Total revenues
171,030
176,531
171,360
150,000
205,632
Revenues over(under)expenditures
$ 136,075 $ (143,338) $ (153,236)
$ 168,575
$ 145,429
I.M
r
Page 60 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
RECREATION DEPARTMENT - YOUTH SERVICES AND TEEN PROGRAMS
2014/15
2015/16
2011/12
2012/13
2013114
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Personnel services
$ (346,637) $
(330,717) $
(323,683) $
(330,096) $
(350,366)
Supplies
(26,680)
(20,478)
(27,112)
(31,000)
(27,650)
Services
(14,757)
(12,013)
(22,512)
(16,702)
(25,524)
Capital outlay
Other
Equipment replacement
Total expenditures
(388,074)
(363,208)
(373,307)
(377,798)
(403,540)
Total revenues
167,747
158,855
216,574
178,500
241,887
Revenues over(under) expenditures $ 220,327 $ (204,353) $ (156,733) $ 199,298 $ 161,653
Page 61 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SPECIAL SIGNAGE
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Supplies $ - $ - $ - $ - $
Services (5,110) (2,235) (4,092) 3,000 5,000
Total expenditures $ (5,110 $ (2,235) $ (4,092) $ 3,000 $ 5,000)
NOTES:
Signage includes park and parking lot signs, special event signs at City entrances, and maintenance of
existing signs and panels.
Page 62 of 218
M
.nW
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
COMMUNITY DEVELOPMENT
2014/15 2015/16
2011112 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Personnel services $ - $ - $ - $ - $ (678,879)
Supplies - - - - (7,200)
Services - - - - (102,849)
Capital outlay - - - - -
Other - - - - (100,000)
Equipment replacement - - - - Total expenditures - - - - (888,928)
Total revenues - - - - 396,300
Revenues over(under) expenditures $ - $ - $ - $ - $ (492,628)
NOTES:
This is a new division, home to the City's planning functions.
With the 2015/16 budget, $100,000 is designated for various studies.
Page 63 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
TRANSFERS
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
TRANSFERS OUT:
General - Facility Maintenance
$ -
$ -
$ (1,255,000) $
-
$ -
General - Emergency Reserve
-
-
(38,195)
-
-
General - Vehicle Replacement
-
-
-
-
(75,000)
General - Capital Replacement ISF
-
-
-
-
(75,000)
General - Projects Accumulation ISF -
-
-
-
(200,000)
General - Capital Improvement
(828,092)
(1,492,417)
(872,894)
-
-
Special Revenue Funds
-
-
(320,663)
-
(375,489)
Total Transfers Out
$ (828,092)
$ (1,492,417)
$ (2,486,752) $
-
$ (725,489)
TRANSFERSIN:
Emergency Reserve Fund
$ 300,000
$ 209,700
$ - $
-
$ -
Special Revenues Funds:
Measure Q - Fire overtime
44,020
55,298
123,340
99,608
92,867
County TMD
-
-
-
-
5,743
TBID
39,333
31,000
-
-
15,508
State Gas Tax - streets
309,847
252,131
345,434
271,934
230,562
Traffic Safety - traffic signals
31,399
33,648
19,012
30,000
20,000
Affordable In -Lieu Housing
-
-
63,000
1,000
-
Capital Improvement fund
(295,232)
1,671,143
845,152
-
-
Enterprise Funds:
Cost Allocation Plan:
Transit
109,775
79,775
79,775
79,775
79,775
Water
271,188
271,188
276,341
279,104
283,058
Sewer
161,630
161,630
164,701
166,348
169,512
Harbor
276,986
276,986
276,986
276,986
278,986
Other:
Harbor - AGP Video
5,000
5,000
5,000
5,000
5,000
Risk Management Accum Fund
-
179,600
252,620
-
-
Total Transfers In
$ 1,253,946
$ 1,227,099
$ 2,451,361 $
1,209,755
$ 1,181,011
NOTES:
Beginning with the 2009/10 fiscal year, the $500,000 received annually from Dynegy Agreement was placed in the
General Fund Emergency Reserve Fund. The General Fund began reducing its dependence on that money with
its the 2010/11 budget, and will continue to reduce by $100,000 annually, with $0 transfer required by 2014/15.
In 2013/14, the transfer out of $38,195 was to fully fund the G/F Emergency Reserve. The transfer in from Risk Management is for
the $100,000 Dynegy loss, funding TBID's portion of the former CPC funds, backfilling the G/F Emergency Reserve and Council
bequeathals.
In 2015/16, transfers out to Special Revenue Funds are $50,000 to the Visitors Center, and $325,489 to the Information Services
Internal Service Fund.
Page 64 of 218
Fir
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
DISTRICT TRANSACTION TAX FUND
With the November 7, 2006 election, the citizens of Morro Bay voted in a 1/2 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.
Page 65 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
DISTRICT TRANSACTION TAX FUND (MEASURE Q)
Beginning cash balance
Revenues from:
1/2 cent sales tax
Interest income
Transfers in
Total revenues
Expenditures:
Fire
Fire - Fire Station #53 D/S
Fire - Firefighter
Fire/EOC
Streets
Streets-curb/gutter/potholes/sidewalks
Storm drains
Police
Police - SRO
Public safety
Transfers Out:
General Fund
Capital projects
Total expenditures
Revenues over (under) expenditures
Reservations for:
Fire
Firefighter
Streets
Storm drain
Police
Communications
Total reservations
Ending cash, available for distribution
2014/15
2015116
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
$ 1,039,594 $
1,495,393 $
688,536 $
305,861
$ 10,575
780,980
909,791
920,713
930,000
923,360
11,456
4,576
2,992
-
-
183,158
126,803
-
32,590
-
975,594
1,041,170
923,705
962,590
923,360
(601)
(105,833)
(51,646)
-
-
(1,467)
(35,225)
(41,483)
(91,300)
(90,806)
(146,035)
(147,101)
(112,707)
(95,312)
(93,340)
-
-
-
-
(25,773)
(94,588)
(1,216,905)
(700,636)
(855,521)
(550,574)
(148,657)
(228,481)
(22,841)
-
-
(500)
(5,120)
(18,772)
-
-
(53,964)
(26,952)
(8,627)
(55,000)
(10,000)
(29,641)
(27,112)
(74,208)
(61,135)
(60,000)
(322)
-
(77,620)
-
-
(44,020) (55,298) (123,340) (99,608) (92,867)
- - (74,500) - -
(519,795) (1,848,027) (1,306,380) (1,257,876) (923,360)
455,799 (806,857) (382,675) (295,286) -
$ 1,495,393 $ 688,536 $ 305,861 $ 10,575 $ 10,575
NOTES:
Resolution No. 26-10, adopted on May 24, 2010, established the procedures for requesting Measure Q funding.
Beginning in 2009/10, the transfer out is for funding the additional reserve, part-time firefighters to maintain 4-person staffing.
With the review of the 2011/12 fiscal year transactions, the Committee recommended that most of the Storm Drain Carryover
($471,832) from 2011/12 be reallocated to streets, leaving $86k in carryover for the update to the 1987 Storm Drain Master Plan.
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 2013/14 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 2013/14 budget.
With the 2014/15 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.
Page 66 of 218
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M
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 67 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ (22,090) $
30,359 $
31,705
$ 48,014 $
-
Revenues from:
Assessments
509,920
567,434
643,161
575,000
775,406
Interest
46
264
453
-
-
Visitors Center - City Contribution
693
-
102,168
100,000
50,000
Promotion - City Contribution
-
58,425
58,425
40,000
-
Promotion - Council bequest
-
68,500
58,000
-
-
Subtotal
510,659
694,623
862,207
715,000
825,406
Expenditures:
Tourism promotion
(391,504)
(662,277)
(843,898)
(761,014)
(807,898)
City administrative fee (2%)
-
-
-
-
(15,508)
AGP video
-
(6,000)
(2,000)
(2,000)
(2,000)
Transfers to General Fund
(66,706)
(25,000)
-
-
-
Subtotal
(458,210)
(693,277)
(845,898)
(763,014)
(825,406)
Revenues over (under) expenditures
52,449
1,346
16,309
(48,014)
-
Ending cash balance
$ 30,359 $
31,705 $
48,014
$ - $
-
NOTES:
In 2011/12, transfers out includes $50k funding for the Visitors Center, which was prorated to begin in November 2011.
At the June 12, 2012 City Council meeting, the Council decided to distribute the $116,850 of funding formerly allocated to the Community
Promotions Committee (CPC). 50% of that money was given to the TBID for community promotions, and 50% was given to the
Chamber of Commerce for economic development.
In 2012/13, the Board approved a transfer to the General Fund of $25,000 for Visitors Center funding, and $6,000 for AGP Video.
For the 2012/13 fiscal year, City Council granted $126,925 to TBID that was made up as follows:
50% of former CPC money $ 58,425 General Fund paid
Contribution to improvements for the
new Visitors Center $ 10,000 Reserves paid
Contribution for marketing $ 58,500 Reserves paid
For the 2013/14 fiscal year, City Council granted $218,593 to TBID that was made up as follows:
50% of former CPC money $ 58,425 Risk Management paid
Visitors Center $ 102,168 General Fund paid
Contribution for marketing $ 58,000 Risk Mgmt paid $56,000; General Fund City Council budget paid $2,000
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 2014/15 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 2015/16 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.
Page 68 of 218
Iwo
CITY OF MORRO BAY
2015/16 PROPOSED 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 will be
sent to the CTMD monthly, less a 2% administrative fee.
Page 69 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
COUNTY TOURISM MARKETING DISTRICT
../
2014/15 2015116
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Beginning cash balance
$ - - - - $ -
Revenues from:
Assessments
- - - - 287,125
Expenditures for capital outlay:
Tourism promotion
- - - - (281,382)
City administrative fee (2%)
- - - - 5,743
Subtotal expenditures
- - - - 287,125
Revenues over (under) expenditures
- - - - -
Ending cash balance
$ - - - - $ -
NOTES:
This newly -formed county -wide tourism effort has not yet been approved by the County Board of Supervisors, as of July 1, 201
Page 70 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 71 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GENERAL GOVERNMENT VEHICLE REPLACEMENT FUND
Beginning cash balance
Revenues from:
Interest income
Sales of assets
Other revenues
Transfer in
Total revenues
Expenditures:
Administration
Police Department
Fire Department
Public Services Administration
Vehicle Maintenance
Street Maintenance
Recreation and Parks Administration
Recreation and Parks Facilities
Recreation and Parks Maintenance
Transfers out
Total expenditures
Revenues over (under) expenditures
Ending cash balance
i
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
$ 171,443 $
126,369 $
8,410
$ 2,262 $
27,262
1,244
128
37
-
-
1,500
-
-
-
-
-
-
20,000
115,000
75,000
2,744
128
20,037
115,000
75,000
-
-
(26,185)
-
-
(45,236)
(67,527)
-
(45,000)
-
-
(50,560)
-
(45,000)
-
n
(2,582) - - -
47,818 (118,087) (26,185) (90,000)
45,074 (117,959) (6,148) 25,000 75,000
$ 126,369 $ 8,410 $ 2,262 $ 27,262 $ 102,262
NOTES:
2011/12 allocation: Watch Commander vehicle
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 4x
3) Parks = pickup truck
In February 2015, the decision was made not to purchase the Parks pickup truck.
Page 72 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 73 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GENERAL FUND EMERGENCY RESERVE FUND
Beginning cash balance
Revenues from:
Interest income
Dynegy agreement
Sale of property
Other
Subtotal
Transfers in
Total revenues
Transfers out:
General Fund
District Transaction Tax (Mess Q)
General Fund Facility Maint Fund
Total transfers out
Revenues over (under) expenditures
M
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ 3,004,152 $ 3,058,679 $ 2,854,052 $ 2,909,885 $ 3,447,885
25,078 13,288 17,638 13,000 16,927
500,000 - - 525,000 -
- 118,588 - - -
525,078 131,876 17,638 538,000 16,927
- - 38,195 - -
525,078 131,876 55,833 538,000 16,927
(300,000) (209,700) - - -
(170,551) (126,803) - - -
(470,551) (336,503) - - -
54,527 (204,627) 55,833 538,000 16,927
Ending cash balance $ 3,058,679 $ 2,854,052 $ 2,909,885 $ 3,447,885 3,464,812
27.5% reserve requirement 2,660,401
Available for budgetary purposes, per Resolution No. 33-15; Council approval required $ $ 804,411
NOTES:
Resolution No. 33-15, adopted on June 9, 2015, sets the parameters of this fund.
For the 2011/12 budget, $170,551 was transferred out to the District Transaction Tax (Measure Q) Fund for streets expenditures.
For the 2012/13 budget, no additional funds have been budgeted for the Dynegy agreement. The excess reserves were transferred
to the District Transaction Tax (Measure Q) Fund for streets.
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).
The reserve calculation has changed with the 2014/15 budget. The average of three years' actual operating revenues
is the basis for the new calculation.
Page 74 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GENERAL FUND FACILITY MAINTENANCE FUND
On January 20, 2011, escrow closed on the City -owned property at 781 Market Street, 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.
Page 75 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GENERAL FUND FACILITY MAINTENANCE FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed.
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ 146,478
$ 30,451
$ 30,451
$ 70,881
$ 85,270
Revenues from:
Interest income
38,443
50,240
56,610
61,898
61,898
Sale of property agreement
-
-
37,491
37,491
37,491
Total revenues
38,443
50,240
94,101
99,389
99,389
Expenditures (154,470) (47,261) (53,671) (85,000) (171,000)
Revenues over (under) expenditures (116,027) 2,979 40,430 14,389 (71,611)
Ending cash balance
$ 30,451 $ 33,430 $ 70,881 $ 85,270 $ 13,659
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.
Page 76 of 218
2M
.M
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
WATER EQUIPMENT REPLACEMENT FUND
This Fund was established to collect money for the replacement of equipment and vehicles used by the
Water enterprise.
Page 77 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
WATER EQUIPMENT REPLACEMENT FUND
Beginning cash balance
Revenues from:
Interest income
Transfers in
Total revenues
Expenses:
Equipment/Vehicles
Revenues over (under) expenses
Ending cash balance
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ 286,451 $ 288,622 $ 289,801 $ 291,389 $ 291,389
2,171 1,179 1,588 - -
2,171 1,179 1,588 - -
2,171 1,179 1,588 - -
$ 288,622 $ 289,801 $ 291,389 $ 291,389 $ 291,389
Page 78 of 218
In
en
L'J
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SEWER EQUIPMENT REPLACEMENT FUND
This Fund was established to collect money for the replacement of equipment and vehicles used by the
Sewer enterprise.
Page 79 of 218
Beginning cash balance
Revenues from:
Interest income
Transfer in
Total revenues
Expenses:
Equipment/Vehicles
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SEWER EQUIPMENT REPLACEMENT FUND
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ 78,340 $ 79,017 $ 124,532 $ 240,651 $ 285,651
677 515 1,119 - -
- 45,000 115,000 115,000 140,000
677 45,515 116,119 115,000 140,000
- - (70,000)
Im
Revenues over (under) expenses 677 45,515 116,119 45,000 140,000
Ending cash balance $ 79,017 $ 124,532 $ 240,651 $ 285,651 $ 425,651 MOO
NOTES:
The 2011/12 adopted allocation is for standby pumps and power units.
The 2013/14 allocation is for $100,000 and $15,000 to be transferred in to save for the HydroVac and truck replacements.
The 2014/15 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.
Page 80 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
HARBOR EQUIPMENT REPLACEMENT FUND
This Fund was established to collect money for the replacement of equipment and vehicles used by the
Harbor enterprise.
Page 81 of 218
Revenues over (under) expenses
Ending cash balance
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
HARBOR EQUIPMENT REPLACEMENT FUND
F5
2014/15 2015/16
2011/12 2012/13 2013114 Amended Proposed
Actual Actual Actual Budget Budget
Beginning cash balance $ 17,487 $ 17,640 $ 78,932 $ 54,207 $ 24,207
Revenues from:
Interest income
Transfer in from Accumulation fund
Total revenues
Expenses:
Equipment/Vehicles - - (305,135) 301000
153 61,292 (24,725) (30,000) -
$ 17,640 $ 78,932 $ 54,207 $ 24,207 $ 24,207
153 292 410 - -
- 61,000 280,000 - -
153 61,292 280,410 - -
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.
Page 82 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 83 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
COMMUNITY DEVELOPMENT GRANTS FUND
Beginning cash balance
Revenues from grants:
CDBG
HOME
CalHOME
Federal Emergency Shelter Grant (FESG)
Principal repayments
Investment income
Total revenues
Expenditures for:
CDBG
HOME
CalHOME
Federal Emergency Shelter Grant (FESG)
Other
Total expenditures
Revenues over(under) transfers out
Ending cash balance
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
$ 100,062
$ 168,135
$ 176,681 $
89,026
$ 89,026
-
15,630
56,608
-
-
73,511
11,584
39,025
-
-
925
1,544
600
-
-
74,436
28,758
96,233
-
-
-
(14,276)
(183,217)
-
-
-
(5,936)
(537)
-
-
-
-
(134)
-
-
(6,363)
-
-
-
-
(6,363)
(20,212)
(183,888)
-
-
68,073
8,546
(87,655)
-
-
$ 168,135
$ 176,681
$ 89,026 $
89,026
$ 89,026
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 2014 funding allocation as approved by the City Council on 1/28/14 is allocated as follows:
City's Pedestrian Accessibility Project $ 36,796
Senior Nutrition Program 8,491
Program administration 11,321
$ 56,608
Page 84 of 218
s+
100
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 85 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
Beginning cash balance
Revenues from:
State Gas Tax, Section 2105
State Gas Tax, Section 2106
State Gas Tax, Section 2107
State Gas Tax, Section 2107.5
State Gas Tax, Section 2103
Otherrevenues
Total revenues
Less transfers to General Fund for:
Street Maintenance
Engineering - Sec 2107.5
Total transfers out
Revenues over(under) transfers out
Ending cash balance
STATE GAS TAX FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
48,266
45,898
71,495
50,962
60,606
46,654
46,924
48,006
44,460
36,046
69,279
75,210
76,480
62,619
82,860
3,000
3,000
3,000
3,000
3,000
142,648
83,339
146,453
110,893
48,050
309,847
254,371
345,434
271,934
230,562
(306,847) (251,371) (342,434) (268,934) (227,562) ..%
(3,000) (3,000) (3,000) 3 000 (3,000)
(309,847) (254,371) (345,434) 271 934 (230,562)
NOTES:
"Other revenues" represents Proposition 42 Traffic Congestion Relief money; in 2010/11, the Proposition 42
money was replaced with Gas Tax Section 2103 funds.
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.californiacityfiinance.com/#TRANSPORTATION.
Iwo
Page 86 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 87 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
LOWER COST VISITOR ACCOMMODATIONS MITIGATION FEES FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ 14,488 $
35,485
$ 36,489 $
36,713
$ 36,713
Revenues from:
Mitigation fees
20,790
-
-
-
-
Interest
207
1,004
224
-
-
Total revenues
20,997
1,004
224
-
-
Expenditures for capital outlay:
Lower cost visitor accommodations
-
-
-
-
-
Revenues over (under) expenditures
20,997
1,004
224
-
-
Ending cash balance
$ 35,485 $
36,489
$ 36,713 $
36,713
$ 36,713
EMM
R
Page 88 of 218
`*W
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 89 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
TRAFFIC SAFETY FUND
,woe
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ -
$ -
$ -
$ -
$ -
Revenues from:
Vehicle Code Fines
31,399
33,648
19,012
30,000
20,000
Less transfers to General Fund
(31,399)
(33,648)
(19,012)
30 000
(20,000)
Revenues over(under) transfers out
-
-
-
-
-
Ending cash balance
$ -
$ -
$ -
$ -
$ -
Iwo
Page 90 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 91 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SPECIAL SAFETY GRANTS FUND
Beginning cash balance
Revenues from:
State grant
Interest
Total revenues
Expenditures:
Personnel services
Supplies
Services
Capital outlay
Other
Total expenditures
Revenues over(under) expenditures
Ending cash balance
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ (39) $ 14,233 $ 50,047 $ 92,921 $ -
100,000 100,000 100,000 100,000 100,000
276 - 237 - -
100,276 100,000 100,237 100,000 100,000
(320) - (14,878) (18,295) (18,295)
(84,412) (43,565) (42,485) (174,626) (6,000)
(1,272) (401) - - (15,705)
(20,220) - - (60,000)
(86,004) (64,186) (57,363) (192,921) (100,000)
14,272 35,814 42,874 92 921 -
$ 14,233 $ 50,047 $ 92,921 $ - $ -
NOTES:
The SLESF (COPS) Grant is a federal grant with a fiscal year of October 1 - September 30. Notification of award
does not occur until late August; we do not budget for this due to the uncertainty of receipt. Once we
receive the award notification, a budget amendment is processed.
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.
Purchases for FY 2013/14 are for the following:
Part-time property technician $ 14,878
Utility truck & equipment 42,485
$
57,363
Purchases for FY 2014/15 are for the following:
Part-time property technician $
18,295
RTV Utility vehicle
20,000
Handgun replacement
20,000
Replace investigations vehicle
40,000
Body -worn cameras
10,000
Night vision camera
4,000
Patrol bicycles (6) & safety equipment
10,000
Patrol vehicle conversion kits to use
by detectives
15,000
Pepper spray (25 cans)
1,000
K-9 Vehicle
54,626
$ 192,921
Page 92 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 93 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
Beginning cash balance
Revenues from:
Parking in -lieu fees/agreements
Interest income
Other revenues and transfers
Total revenues and transfers in
Expenditures:
Contract services
Transfers out:
Enterprise
Capital improvement
Reservation per Reso No. 48-13
Subtotal
Total expenditures, transfers out
and reservations
PARKING IN -LIEU FUND
..01
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ 139,670 $ 387,833 $ 399,301 $ 4101257 $ 121657
45,366 9,151 9,497 1,400 5,409
2,797 2,317 1,459 - 732
200,000 - - - -
248,163 11,468 10,956 1,400 6,141
J
(399,000)-
- - - (399,000) -
- 399 000 -
Revenues over(under) expenditures
and transfers out 248,163 11,468 10,956 397,600 6,141
Ending cash balance $ 387,833 $ 3991301 $ 410,257 $ 12,657 $ 181798
NOTES:
In January 2011, the City sold the Brannigan's restaurant and the parking lot on Market St. 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.
9
Page 94 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SCHEDULES
1. Schedule of Adopted General Government and Enterprise Capital Projects
2. Schedule of Adopted Measure Q Allocations
3. Schedule of Facility Maintenance Projects
4. Schedule of Completed Facility Maintenance Projects
5. Schedule of Five -Year Pavement Management Expenditures
6. Schedule of Completed Pavement Projects
7. Schedule of Five -Year Capital Requirements
Page 137 of 218
CITY OF MORRO BAY
SCHEDULE OF GENERAL CAPITAL PROJECTS
MORRO CREEK BRIDGE AND BIKE PATH
Beginning cash balance $
Revenues from:
Federal grants:
National Scenic Byways Program
State grants:
RIP - STP enhancement (revised)
SLOCOG RSTP - FY14 Supplement
SLOCOG RSTP - USHA
City Funds: ($186k match min. oblig.)
LTF (non- transit)
Measure Q
Government Impact Fees'
Other
Subtotal
Transfers in
Total revenues
Expenditures:
Preliminary Engineering (Enviro & Permits)
Right-of-way
Base construction estimate (revised)
Construction management (revised)3
Out -of -scope additions:
Emergency vehicle access2
Bike & Pedestrian pathway lighting (revised)
Total expenditures
Revenues over (under) expenditures
Ending cash balance
2013/14
Actual
220,000
43,320
74,500
337,820
2014/15
2015/16
Amended
Proposed
Budget
Budget
(33,857) 3,313
980,000 -
200,000 -
88,000 -
- 31,016
240,413 25,671
750 -
1,509,163 56,687 1
337,820 1,509,163 56,687
(371,677) (21,323) -
- (14,000) -
(1,120,070) (40,000)
- (117,000) (20,000)
(50,000) -
(149,600) -
(371,677) (1,471,993) (60,000)
(33,857) 37,170 (3,313)
$ (33,857) $ 3,313 -
NOTES:
1 Amount to draw from Government Impact Fees was approved 6/24/14, prior to state grant funding
adjustments. Any excess revenue will be returned to the Government Impact Fee Fund.
2 Council approved funding from Measure Q at 2013/14 mid -year budget review.
3 Includes $55,000 staff costs
Page 138 of 218
i
CITY OF MORRO BAY
SCHEDULE OF ENTERPRISE CAPITAL PROJECTS
FOR THE 2015/16 FISCAL YEAR
PROJECT
WATER CAPITAL IMPROVEMENT
Nutmeg tank (project being pushed to 2015/16)
Desal upgrade drought relief
Master plan improvements
Chorro Creek stream gauges
Chorro Valley conversions
Automatic Meter Reading (AMR)
Laurel Ave - easement waterline and easement
TOTAL
SEWER CAPITAL IMPROVEMENT
Lift Station #1 rehabilitation
Laurel Ave easement rehabilitation
Embarcadero rehabilitation
Main Street Improvements (Preston - Errol)
Sewer Rehabilitation
Manhole renovation
TOTAL
HARBOR CAPITAL IMPROVEMENT
Lease site audits
Anchor Park pier
Infrastructure repair/maintenance
Beach Street slips - North
Beach Street slips - South
Boat repair/storage yard
Harbor maintenance/storage yard
South T-Pier structural inspection/assessment
TOTAL
WASTEWATER TREATMENT PLANT
Digester #1 & 3 repairs
New distributor arms on biofilter #2 & flood walls
Rehab and Repairs to secondary clarifier
Interstage vault and blending valve replacement project
TOTAL
WASTEWATER RECLAMATION FACILITY
Prelim facility master plan/facility master plan (City only)
TOTAL
CARRYOVER
FROM ONGOING
PROPOSED
PROPOSED
PROTECTS
TOTAL
ACCOUNT
2015/16
AS OF
CAPITAL
NUMBER
BUDGET
04/10/15
PROJECTS
921-8437
$
700,000
$
-
$ 700,000
921-8464
50,000
300,000
350,000
921-9604
-
150,000
150,000
921-9704
100,000
100,000
200,000
-
60,000
60,000
200,000
200,000
$
1,050,000
$
610,000
$ 1,660,000
922-8204
$
24,100
$
185,900
$ 210,000
922-8210
-
200,000
200,000
500,000
-
500,000
200,000
200,000
150,000
150,000
922-8460
60,000
-
60,000
$
934,100
$
385,900
$ 1,320,000
923-8002
$
-
$
-
$ -
923-8006
923-8413 - -
340,000 340,000
225,000 225,000
923-8435 - -
923-8106
923-)o=
$ 565,000 $ - $ 565,000
$ $ 50,000 $ 50,000
930-8468 215,000 215,000
75,000 - 75,000
125,000 125,000
$ 200,000 $ 265,000 $ 465,000
599-8312 $ 707,000 $ 1,527,000 $ 2,234,000
$ 707,000 $ 1,527,000 $ 2,234,000
Page 139 of 218
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9
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
OTHER INFORMATION
1. Glossary
2. Investment Policy
3. Ordinances
4. Resolutions
Page 159 of 218
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.
Page 160 of 218
.rr
F5
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.
CaIPERS (also called PERS)
The California Public Employees Retirement System, which is the agency providing pension
benefits to all City employees.
Ca1PERS 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.
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.
Page 161 of 218
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.
,we
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 include 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.
Page 162 of 218
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.
I%W FIFA
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 Eauivalent (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.
Page 163 of 218
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 four 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
Page 164 of 218
replacements); establishing this Fund is a Management Partners' recommendation
from the 2015 assessment.
c. Capital Replacement: this Fund will accumulate money for the replacement of
capital assets (i.e., City Hall), and is also a Management Partners' recommendation
from the 2015 assessment.
d. Project Accumulation: this Fund will accumulate money for one-time projects, and
is also a Management Partners' recommendation from the 2015 assessment.
Lam[
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 S EI U- 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
%W 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.
PERS — see CaIPERS
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.
Page 165 of 218
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 Council
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 (RFQI
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 CaIPERS
particivating 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
Page 166 of 218
...IV
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 aqe 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 grant from
�a. 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.
Page 167 of 218
CITY OF MORRO BAY
INVESTMENT POLICY
DULY 2015
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
M
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.
M
Page 168 of 218
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, as stated above in the Objectives section under Safety, 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.
Page 169 of 218
Delegation of Authority.- The following positions and corresponding City personnel are
delegated the power to invest the funds of the City:
City Manager: David Buckingham
Admin Services Dir/Treasurer: Susan Slayton
Human Resources Analyst: Laurie Goforth
Senior Accounting Technician: Cristie Brazzi
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 transaction 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
../
Page 170 of 218
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 Sections 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.
Page 171 of 218
Minimum Credit Requirements.- The City has chosen to follow the California Government ..o+
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 No,
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 is to be reviewed on a monthly basis
to ensure that the investments are being properly tracked and reported.
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.
,wool
Page 172 of 218
`..
REPORTING
Reporting Methods. On a quarterly basis, the investment portfolio will be presented at a City
Council meeting along with the quarterly 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 return, 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.
Page 173 of 218
APPENDIX A — INVESTMENT POLICY TERMINOLOGY
.rI
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
Page 174 of 218
overnight repurchase agreements to ensure that appropriate liquidity is maintained in order
�%w to meet ongoing obligations.
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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 return 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 prevented. 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
Page 175 of 218
accounting and recordkeeping, custodial safekeeping, avoidance of physical delivery of
securities, clear delegation of authority to subordinate staff, written confirmation of Iwo,
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 Guidelines, 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.
LAIR Local Agency Investment Fund, the State of California's investment pool in which 1.00,
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.
,wool
Page 176 of 218
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 calendar 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.
Page 177 of 218
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 .i
default in the timely payment of interest and/or principal on a security. Interest 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 ..Solo
the investment of local agency funds.
Page 178 of 218
n
M
CITY OF MORRO BAY
SCHEDULE OF UNFUNDED LIABILITIES
AS OF 05/06/2015
DEPT
Administration
Administrative Services 2
Police 3
Fi re
Public Works
Water
Sewer Collections
Wastewater Treatment
Recreation 4
Consolidated Maintenance 5
Community Development
Harbor
Totals
SICK COMPENSABLE HOURS 1
HOURS DOLLARS HOURS DOLLARS
1,157.8900 $
45,852.70
1,055.0350 $
42,837.66
4,071.8350
164,386.19
1,426.0200
51,465.24
6,701.7359
258,819.90
4,303.3450
168,967.52
10,437.2296
274,645.64
4,627.5650
121,680.70
1,356.3000
71,721.10
1,180.3600
56,477.46
2,008.2250
60,610.28
1,191.6800
36,046.59
1,730.3300
43,426.84
672.2450
17,254.11
965.2924
36,122.1000
990.3785
33,138.60
1,178.7350
35,561.41
612.8200
17,098.69
928.3400
23,669.11
413.1200
9,643.68
371.4400
12,821.02
261.1600
9,416.89
2,004.9100
84,481.87
1,386.2750
48,706.72
32,912.2629 $
1,112,118.16
18,120.0035 $
612,733.86
1 Compensable hours includes vacation, floating holiday, comp time and administrative leave
Z Departments include Human Resources, Legal, Finance and Information Technology
3 Departments include Police and Communications
4 Departments include Administration, Sports and Youth
5 Departments include Vehicle, Streets, Facilities and Parks Maintenance
Page 179 of 218
ORDINANCE 519
AN ORDINANCE OF THE CITY OF MORRO BAY
ADDING CHAPTER 3.22 TO TITLE 3 OF THE MORRO BAY
MUNICIPAL CODE ESTABLISHING A TRANSACTIONS
AND USE TAX TO BE ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION
THE CITY COUNCIL
CITY OF MORRO BAY, CALIFORNIA
The City Council of the City of Morro Bay does ordain as follows:
Section 1. Authority.
The City Council enacts this ordinance in accordance with the authority granted to
cities by Article X1, Section 7, of the California Constitution.
Section 2. Addition of Chapter.
Chapter 3.22 is hereby added to Title 3 of the Morro Bay Municipal Code.
3.22.010 Title.
This Chapter shall be known as the City of Morro Bay Transactions and Use Tax
Ordinance. The City of Morro Bay hereinafter shall be called "City." This ordinance
shall be applicable in the incorporated territory of the City,
3.22.020 Operative Date. r•/
"Operative Date" means the first day of the first calendar quarter commencing
more than 110 days after the later of the adoption of this ordinance and chapter, the date
of such adoption being as set forth below, or the approval of the voters of the City of a
measure approving the imposition of the transaction and use tax set forth herein; provided
that if the City shall not have entered into a contract with the State Board. as required
herein prior to such date, the Operative date shall be the first day of the first calendar
quarter following execution of such a contract.
3.22.030 Purpose.
The purpose of this chapter is to achieve the following, among other purposes,
and directs that the provisions hereof be interpreted in order to accomplish those
purposes:
A. To impose a retail transactions and use tax in accordance with the provisions
of Pant 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation
Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this
tax ordinance which shall be operative if a majority of the qualified voters of the City
voting on the measure vote to approve the imposition of the tax at an election -called for
that purpose.
400
Page 180 of 218
0
B. To adopt a retail transactions and use tax ordinance that incorporates
provisions identical to those of the Sales and Use Tax Law of the State of California
insofar as those provisions are not inconsistent with the requirements and limitations
contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and
provides a measure therefore that can be administered and collected by the State Board of
Equalization in a manner that adapts itself as fully as practicable to, and requires the least
possible deviation from, the existing statutory and administrative procedures followed by
the State Board of Equalization in administering and collecting the California State Sales
and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered
in a manner that will be, to the greatest degree possible, consistent with the provisions of
Part 1.6 of Division 2 of .the Revenue and Taxation Code, minimize the cost of collecting
the transactions and use taxes, and at the same time, minimize the burden of record
keeping upon persons subject to taxation under the provisions of this ordinance.
3.22.040 Contract With State.
Prior to the operative date, the City shall contract with the State Board of
Equalization to perform all functions incident to the administration and operation of this
transactions and use tax ordinance; provided, that if the City shall not have contracted
with the State Board of Equalization prior to the operative date, it shall nevertheless so
contract and in such a case the operative date shall be the first day of the first calendar
quarter following the execution of such a contract.
3.22.050 Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby
imposed upon all retailers in the incorporated territory of the City at the rate of one half
of one percent (0.5%) of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail in the City on and after the operative date of this
ordinance.
3.22.060 Place Of Sale.
For the purposes of this ordinance, all retail sales are consummated at the place
of business of the retailer unless the tangible personal property sold is delivered by the
retailer or his agent to an out-of-state destination or to a common carrier. for delivery to
an out-of-state destination. The gross receipts from such sales shall include delivery
charges, when such charges are subject to the state sales and use tax, regardless of the
place to which delivery is made. In the event a retailer has no permanent place of
business in the State or has more than one place of business, the place or places at which
the retail sales are consummated shall be determined under rules and regulations to be
prescribed and adopted by the State Board of Equalization.
3.22.070 Use Tax Rate.
An excise tax is hereby imposed on the storage, use or other consumption in the
incorporated territory of the City of tangible personal property purchased from any
retailer on and after the operative date of this ordinance for storage, use or other
consumption in the City at the rate of one-half of one percent (0.5%) of the sales price of
Page 181 of 218
the property. The sates price shall include delivery charges when such charges are subject
to state sales or use tax regardless of the place to which delivery is made.
3.22.080 Adoption Of Provisions Of State Law.
Except as otherwise provided in this ordinance and Chapter and except insofar as
they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and
Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of
Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this
Ordinance and Chapter as though fully set forth herein.
3.22.090 Limitations On Adoption Of State Law And Collection Of Use Taxes.
In adopting the provisions of Part I of Division 2 of the Revenue and Taxation
Code:
A. Wherever the State of California is named or referred to as the taxing agency,
the name of this City shall be substituted therefore. However, the substitution shall not
be made when:
1. The word "State" is used as a part of the title of the State Controller, State
Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the
Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against
this City or any agency, officer, or employee thereof rather than by or against the State
Board . of Equalization, in performing the functions incident to the administration or
operation of this Ordinance.
3. in those sections, including, but not necessarily limited to sections referring to
the exterior boundaries of the State of California, where the result of the substitution
would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or
other consumption of tangible personal property which would not otherwise be exempt
from this tax while such sales, storage, use or other consumption remain subject to tax by
the State under the provisions of Part I of Division 2 of the Revenue and Taxation Code,
or;
. b. Impose this tax with respect to certain sales, storage, use or other consumption
of tangible personal property, which would not be subject to tax by the State under the
said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737,
6797 or 6828 of the Revenue and Taxation Code.
B. The word "City" shall be substituted for the word "State" in the phrase
"retailer engaged in business in this State" in Section 6203 and in the definition of that
phrase in Section 6203.
Page 182 of 218
3.22.100 Permit Not Required.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue
and Taxation Code, an additional transactor's permit shall not be required by this
ordinance.
3.22.110 Exemptions And Exclusions.
A. There shall be excluded from the measure of the transactions tax and the use
tax the amount of any sales tax or use tax imposed by the State of California or by any
city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and
Use Tax Law or the amount of any State -administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax
the gross receipts from:
1, Sales of tangible personal property, other than fuel or petroleum products, to
operators of aircraft to be used or consumed principally outside the County in which the
sale is made and directly and exclusively in the use of such aircraft as common carriers of
persons or property under the authority of the laws of this State, the United States, or any
foreign government.
2. Sales of property to be used outside the City which is shipped to a point
outside the City, pursuant to the contract of sale, by delivery to such point by the retailer
or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such
point. For the purposes of this paragraph, delivery to a point outside the City shall be
satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the
Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities
Code, and undocumented vessels registered under Chapter 2 of Division 3.5
(commencing with Section 9840) of the Vehicle Code by registration to an out -of -City
address and by a declaration under penalty of perjury, signed by the buyer, stating that
such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out -
of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will
be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the
property for a fixed price pursuant to a contract entered into prior to the operative date of
this ordinance.
4. A lease of tangible personal property which is a continuing sale of such
property, for any period of time for which the lessor is obligated to lease the property for
an amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subsections (3) and (4) of this section, the sale or lease of
tangible personal property shall be deemed not to be obligated pursuant to a contract or
lease for any period of time for which any party to the contract or lease has the
Page 183 of 218
unconditional right to terminate the contract or lease upon notice, whether or not such
right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage,
use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions
tax under any state -administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and
used or consumed by such operators directly and exclusively in the use of such aircraft as
common carriers of persons or property for hire or compensation under a certificate of
public convenience and necessity issued pursuant to the laws of this State, the United
States, or any foreign government. This exemption is in addition to the exemptions
provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of
California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant
to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible
personal property arises under a lease, which is a continuing purchase of such property
for any period of time for which the lessee is obligated to lease the property for an
amount fixed by a lease prior to the operative date of this ordinance.
5. For the purposes of subsections (3) and (4) of this section, storage, use, or
other consumption, or possession of, or exercise of any right or power over, tangible
personal property shall be deemed not to be obligated pursuant to a contract or lease for
any period of time for which any party to the contract or Iease has the unconditional right
to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the
City shall not be required to collect use tax from the purchaser of tangible personal
property, unless the retailer ships or delivers the property into the City or participates
within the City in making the sale of the property, including, but not limited to, soliciting
or receiving the order, either directly or indirectly, at a place of business of the retailer in
the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in'
the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of
any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing
with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance
with Section 21411 of the Public Utilities Code, or undocumented vessels registered
under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code.
That retailer shall be required to collect use tax from any purchaser who registers or
licenses the vehicle, vessel, or aircraft at an address in the City.
.MW
Page 184 of 218
D. Any person subject to use tax under this ordinance may credit against that tax
�hr any transactions tax or reimbursement for transactions tax paid to a district imposing, or
retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and
Taxation Code with respect to the sale to the person of the property the storage, use or
other consumption of which is subject to the use tax.
3.22.120 Citizens Oversight Committee.
A. Citizens Oversight Committee Established. There shall be a permanent
citizens' advisory committee called the "Citizens Oversight Committee" (hereinafter
"Committee"), which shall semi-annually review revenues and expenditures from the
collection of the tax.
B. Committee Membership. The Committee shall have 5 citizen -members
appointed by the City Council for six -year terms with initially 3 members serving 3
years, and 3 members serving 6 years. Appointees shall be residents of the City;
however, -no member of the Committee shall be an elected official.
C. Committee Organization -Procedures. The committee shalt select one of its
members as Chairperson. The Committee shall follow the rules of procedure of the City
unless and until, upon the report and recommendation from the Committee, the City
Council adopts a specific set of procedural rules for the Committee.
D. Regular Meeting; Provision of Support Services and Information. The
Committee shall be subject to the provisions of the Brown Act (California Government
Code sections 54950 et seq.) and shall meet at least once each calendar year. A regular
meeting schedule shall be determined in accordance with the Brown Act and thereafter
meetings shall be noticed by the City Clerk. The City Manager or his/her designee shall
serve as executive staff to the Committee. In addition to receiving materials directly
related to the functioning of the Committee, the Committee members shall also receive
all agenda material and other primary staff reports (other than those which are
confidential) as are provided to the City Council.
E. Citizens Oversight Committee Functions. The Committee shall have the
following function:
Semi -Annual Report: The Committee shall review a semi-annual expense report
of the City relative to activities funded with the additional general purpose local sales tax
monies. Not later than the last day of the sixth month following the end of the each City
fiscal year, the Committee will present its findings and conclusions to the City Council
for its review.
3.22.130 Amendments.
All amendments subsequent to the effective date of this ordinance to Part 1 of
Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which
are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation
Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and
Taxation Code, shall automatically become a part of this ordinance, provided however,
Page 185 of 218
that no such amendment shall operate so as to affect the rate of tax imposed by this
ordinance.
3.2.2.140 Enjoit&g Collection Forbidden.
rbidden.
No injunction or writ -off mandate or other legal or equitable process Aeffl issue In
.any suit, action or,.proceeding in any -court against the State. or the City, or against any
officer of the State or the City, to ptevdilt or enjoin the collect
im under this ordinance, or
Part I i6 of Division 2 of the Revenue and Taxation . Co eof any -tax or any amount d of tax
required to be collected.
3.21,150 geverAblfity.
If any provision of this ordinance or the application thereof to an n perso or
circumstance is h6ldinvalid' the rema
inder Ainder of the ordinance and the application of such
provision to other, -persons or dirwmstarioes shall not be affected thereby..
q ..Dote.
If this ordinance is approved by a majotity of the electors voting on
the issue at.
the November 1, 2006 general -mUncip
i -at election, pursuant. to � 'Election. Code Section
. .
02.11, the iiix;sWl become effective toji City Council
- the accepts. the certified
results of thezeleetiqn.:
PASSED, APPROVED AND.ADOPTED . by the City Council o . f the City of
Morro Bay on the 14" day of August 2006 .by the following vote to wit:
AYES: DeMeritt, Pcircq Peters 'Winholtz.
NOES: Baxley
ABSENT: None
ABSTAIN: None
Mayor
ATTEST:
0NIOWIVAS T
0 FORM.
ROBERT W. SCHUOFZ, EsqI
City Attorney
Page 186 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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).
Page 97 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
LOCAL TRANSPORTATION FUNDS, BIKEWAY PATHS, FUND
Beginning cash balance
Revenues from:
LTF
Interest income
Total revenues
Expenditures:
Bikeway paths
Revenues over(under) expenditures
and transfers out
Ending cash balance
EM
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
$ 5,624 $
12,655
$ 20,369
$ 27,815
$ 38,536
6,935
7,622
7,299
10,721
7,907
96
92
147
-
-
7,031
7,714
7,446
10,721
7,907
- (46,443)
7,031
7,714
7,446
10,721 38,536
$ 12,655 $
20,369 $
27,815 $
38,536 $ -
NOTES:
For 2015/16, the expenditure will be for the bike crossing on Atascadero Road.
Page 98 of 218
lad
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 95 of 218
Beginning cash balance
Revenues:
MB Transit:
LTF
STA
Grants
Farebox
Other
Subtotal
Trolley:
LTF
Grants
Farebox
Advertising
Rent
Other
Subtotal
Total revenues
Expenses for:
MB Transit (no depreciation)
Trolley (no depreciation)
Other - reservations
Subtotal
Transfers out to:
General fund for cost allocation
Other
Total expenses and transfers out
Revenues and transfers in over(under)
expenses and transfers out
Ending cash balance
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
TRANSIT FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
$ 141,443 $
125,039 $
166,160
$ 152,018 $
-
216,120
200,497
213,306
228,134
217,085
23,915
32,172
17,571
18,591
18,958
-
13,021
-
-
77,261
12,849
18,575
18,350
19,300
19,300
1,105
1,958
936
1,000
253,989
266,223
250,163
267,025
332,604
32,657
54,110
60,100
69,562
57,673
15,806
12,973
13,041
15,200
15,200
5,046
5,927
5,915
5,000
5,000
2,425
2,530
2,687
2,000
2,000
55,934
75,540
81,743
91,762
79,873
309,923
341,763
331,906
358,787
412,477
(148,822)
(171,255)
(168,919)
(209,350)
(272,629)
(62,106)
(49,612)
(64,764)
(71,962)
(60,073)
-
-
-
(149,718)
(210,928)
(220,867)
(233,683)
(431,030)
(332,702)
(115,399) (79,775) (79,775) (79,775) (79,775)
(32,590) - -
(326,327) (300,642) (346,048) (510,805) (412,477)
(16,404) 41,121 (14,142) (152,018)
$ 125,039 $ 166,160 $ 152,018 $
NOTES:
With the 2010/11 budget, the demand response Dial -A -Ride system was reconfigured to one that requires prior day
notice. The service is now a deviated fixed route system with Call -A -Ride service.
Reservations have been made in the 2012/13 year for the following:
$5,000 for the 2012/13 - 2014/15 Triennial Performance Audit (with STA allocation changes, the City now
has to pay; SLOCOG takes $15,000 off the top of LTF for this audit/ this will build a reserve so no loss
of operating funds every 3 years).
$25,192 for Community Volunteer Bus program (aid in purchase of vehicle/first year operation seed money)
For 2012/13, the RTA allocation disclosure is removed, based on revision to 2010/11 TDA audit. Also, a fixed
route fare increase for cash and pass fares + addition of 1 service hour at the end of the day are included.
For the 2013/14 fiscal year, reservations have been made for the following: 1) $5k for triennial performance audit;
2) $10k for contingency; 3) $23k for volunteer senior bus program; and 4) $43,320 for Morro Creek Bridge project
For the 2014/15 fiscal year, reservations have been made for the following: 1) $5k for triennial performance audit;
2) $33k for contingency; 3) $10k local match on vehicle; and 4) $73,890 surplus
Page 96 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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)).
Page 99 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
LOCAL TRANSPORTATION FUNDS (ROADS) FUND
2014/15
2015/16
2011/12 2012/13 2013/14
Amended
Proposed
Actual Actual Actual
Budget
Budget
Beginning cash balance
$ - $ - $ - $
100 $
100
Revenues from:
LTF
- - 43,320
-
Interest income
- - 100
-
-
Total revenues
- - 43,420
-
-
Expenditures:
Roads
- - 43,320
-
-
Revenues over(under) expenditures
and transfers out - - 100 - -
Ending cash balance $ - $ - $ 100 $ 100 $ 100
Page 100 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
WATER REVENUE FUND
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.
Page 101 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET —xe
WATER REVENUE FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ 375,221
$ 100
$ -
$ -
$ -
Revenues from:
Water sales
3,325,454
3,273,369
3,391,983
3,230,000
4,489,700
Service fees
100,040
105,628
107,630
62,750
104,300
Other revenues
1,552
1,371
1,786
500
1,000
Subtotal
3,427,046
3,380,368
3,501,399
3,293,250
4,595,000
Transfers in from:
Accumulation fund
677,401
337,538
859,045
617,450
-
Other
-
-
Subtotal
677,401
337,538
859,045
617,450
-
Total revenues and transfers in
4,104,447
3,717,906
4,360,444
3,910,700
4,595,000
Expenses for:
Personnel
(782,729)
(767,758)
(751,605)
(762,746)
(666,094)
Supplies
(182,847)
(187,839)
(193,703)
(136,050)
(229,700)
Services
(3,199,564)
(2,466,821)
(3,113,297)
(2,732,800)
(3,032,476)
Other (no depreciation)
(43,240)
(24,400)
(25,498)
-
-
Subtotal
(4,208,380)
(3,446,818)
(4,084,103)
(3,631,596)
(3,928,270)
Transfers out to:
General fund for cost allocation
(271,188)
(271,188)
(276,341)
(279,104)
(281,058)
IT replacement fund
-
-
-
-
(2,000)
Capital improvement fund
Accumulation fund
-
-
-
-
(383,672)
Subtotal
(271,188)
(271,188)
(276,341)
(279,104)
(666,730)
Total expenses and transfers out (4,479,568) (3,718,006) (4,360,444) (3,910,700) (4,595,000)
Revenues over(under) expenses
and transfers out (375,121) (100)
Ending cash balance $ 100 $ - $ - $ _ $ _
NOTES:
Resolution No. 48-08, adopted on August 11, 2008, authorizes the annual transfer of excess cash to the accumulation fund.
Page 102 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SEWER REVENUE FUND
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.
Page 103 of 218
Beginning cash balance
Revenues from:
Sewer user fees
Intergovernmental
Rental income
Other revenues
Subtotal
Transfers in from:
Accumulation fund
Other
Subtotal
Total revenues and transfers in
Expenses for:
Personnel
Supplies
Services
Other (no depreciation)
MB/CSD Wastewater Treatment Plant
Subtotal
Transfers out to:
General fund for cost allocation
IT replacement fund
Accumulation fund
Subtotal
Total expenses and transfers out
Revenues over(under) expenses
and transfers out
Ending cash balance
NOTES:
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SEWER REVENUE FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
$ 1,098,981
$ 100
$ -
$ -
$ -
3,610,534
3,767,815
4,070,514
3,428,067
4,921,000
24,688
42,534
-
-
-
19,665
20,078
45,199
20,000
20,000
29,931
25,368
6,834
25,000
25,000
3,684,818
3,855,795
4,122,547
3,473,067
4,966,000
-
-
-
2,247,136
753,162
-
-
-
2,247,136
753,162
3,684,818
3,855,795
4,122,547
5,720,203
5,719,162
(527,364)
(507,848)
(535,091)
(704,374)
(653,618)
(54,824)
(112,000)
(127,404)
(155,500)
(160,250)
(188,275)
(210,312)
(313,513)
(425,155)
(424,984)
(91,448)
(15,746)
(9,904)
-
-
(1,853,768)
(1,611,817)
(2,099,474)
(4,268,826)
(4,310,798)
(2,715,679) (2,457,723) (3,085,386) (5,553,855) (5,549,650)
(161,630) (161,630) (164,701) (166,348) (167,512)
- - - (2,000)
(1,906,390) (1,236,542) (872,460) - -
(2,068,020) (1,398,172) (1,037,161) (166,348) (169,512)
(4,783,699) (3,855,895) (4,122,547) (5,720,203) (5,719,162)
(1,098,881) (100)
$ 100 $ - $ - $ _ $ _
Resolution No. 48-08, adopted on August 11, 2008, authorizes the annual transfer of excess cash to the accumulation fund.
With the 2011/12 fiscal year, excess cash, approximately $1,100,000, will transfer to the Sewer Accumulation Fund.
In 2014/15, the payment to WWTP includes 75% of the WWTP operating budget plus 100% of the City -only contracts related to the WRF.
Page 104 of 218
1-
1.i
or
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
HARBOR OPERATING FUND
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.
Page 105 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET .o,
HARBOR OPERATING FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ 362,982
$ -
$ -
$
$
Revenues from:
State/Federal grants
144,462
143,795
174,705
-
Charges for services:
Lease sites, including Dynegy
1,802,399
1,834,317
2,002,215
1,768,295
1,864,855
Launch ramp
25,875
22,285
25,076
25,000
27,000
Other
7,884
82,777
90,226
7,550
5,000
Subtotal
1,980,620
2,083,174
2,292,222
1,800,845
1,896,855
Transfers in from:
Capital improvement
-
-
-
_
_
Accumulation fund
Subtotal
-
-
_
Total revenues and transfers in
1,980,620
2,083,174
2,292,222
1,800,845
1,896,855
Expenses for:
Personnel
(923,603)
(911,089)
(936,608)
(975,132)
(1,014,234)
Supplies
(66,230)
(73,428)
(89,280)
(73,350)
(80,700)
Services
(457,991)
(394,551)
(345,982)
(329,341)
(369,406)
Other (no depreciation)
(15,534)
(633)
(111,669)
-
Launch ramp
(3,618)
(3,696)
(3,437)
(3,500)
(3,200)
Debt service
(134,859)
(134,859)
(134,859)
(134,859)
(134,859)
Subtotal
(1,601,835)
(1,518,256)
(1,621,835)
(1,516,182)
(1,602,399)
Transfers out to:
General fund for cost allocation
(276,986)
(276,986)
(276,986)
(276,986)
(276,986)
General fund for AGP services
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
IT replacement fund
-
(2,000)
Capital improvement fund
-
(250,000)
-
-
Accumulation fund - equip repl
-
-
-
(10,470)
Accumulation fund - launch ramp
(22,332)
(18,589)
(21,639)
(2,677)
Accumulation fund - Dynegy
(95,311)
-
-
Accumulation fund - operations
(437,449)
(264,343)
(21,451)
-
-
Subtotal
(741,767)
(564,918)
(670,387)
(284,663)
(294,456)
Total expenses and transfers out
(2,343,602)
(2,083,174)
(2,292,222)
(1,800,845)
(1,896,855)
Revenues over(under) expenses
and transfers out
(362,982)
-
-
Ending cash balance
$ -
$
$ _
$ $ _
NOTES:
Resolution No. 48-08, adopted on August 11, 2008, authorizes the annual transfer of excess cash to the accumulation fund.
Beginning with the 2011/12 fiscal year, all excess cash from the launch ramp operation is being transferred to the
Harbor Accumulation Fund.
With the 2014/15 budget, lease site revenues do not include Dynegy funding.
Page 106 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
In 2009/10, the City adopted Resolution No. 13-10, which established $500,000 as the minimum
balance for this Fund. Excess cash may be programmed by City Council.
With the adoption of the 2015/16 budget, Resolution No. 32-15 will be enacted. This Resolution
rescinds Resolution No. 13-10, and sets the minimum committed balance as $100,000; any excess cash
may be programmed by City Council.
Page 107 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET ...�
RISK MANAGEMENT INTERNAL SERVICE FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ 1,110,869
$ 1,579,831
$ 1,728,403
$ 1,404,918
$ 1,264,918
Revenues from:
Charges for services
1,420,031
1,285,003
1,341,962
1,000,000
1,092,869
Investment earnings
15,271
12,606
9,644
-
5,000
Other revenue
9,408
-
-
-
-
Total revenues
1,444,710
1,297,609
1,351,606
1,000,000
1,097,869
Expenses for:
Personnel
(40,000)
-
-
-
(37,306)
Supplies
-
(550)
Services
(20,351)
(31,344)
(152,840)
(650)
Worker's compensation insurance
(148,687)
(232,470)
(300,421)
(353,091)
(613,167)
Unemployment insurance
(40,479)
(33,585)
(19,962)
(34,589)
(25,000)
General liability insurance
(677,275)
(609,156)
(588,417)
(547,320)
(549,267)
Property damage insurance
(17,367)
(31,265)
(300,936)
(33,000)
(40,000)
Vehicle insurance
(15,671)
(15,983)
(15,785)
(16,000)
(16,000)
Otherinsurance
(15,918)
(15,634)
(24,110)
(16,000)
(26,740)
Total expenses
(975,748)
(969,437)
(1,402,471)
(1,000,000)
(1,308,680) }
Revenues over(under) expenses
468,962
328,172
(50,865)
(210,811)
Transfers out:
General Fund
-
(179,600)
(252,620)
(140,000)
General Fund Vehicle Replacement
-
_ (20,000)
-
-
Total transfers
-
(179,600)
(272,620)
(140,000)
Ending cash balance
$ 1,579,831 $
1,728,403
$ 1,404,918 $
1,264,918 $
1,054,107
NOTES:
Resolution No. 13-10, adopted on February 22, 2010, established the parameters for this fund, which at a minimum,
is $500,000.
In 2012/13, $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 2012/13 mid -year budget review, $79,600 for retirement payouts
In 2013/14, adopted transfers out of $272,620 are for the following:
General Fund Emergency Reserve - fund deficit $38,195
General Fund - final year of Dynegy reduction $100,000
General Fund - contribution to TBID of 50% of CPC funds $58,425
General Fund - Council bequests $56,000
General Fund Vehicle Replacement - add to balance of
cash in fund to cover purchase of a 4-door hybrid
for Administration $20,000
At the 2013/14 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 2014/15, adopted transfers out of $140,000 are for the following:
Visitors Center $100,000
Tourism Bureau Events 40,000
Page 108 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
CAPITAL REPLACEMENT INTERNAL SERVICE FUND
This Fund is established with the adoption of the 2015/14 budget. Its purpose is to account for the
accumulation of funds for capital replacement, such as City Hall.
Page 111 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET ",
CAPITAL REPLACEMENT INTERNAL SERVICE FUND
2014/15 2015/16
2011112 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Beginning cash balance $ - $ - $ - $ - $ -
Revenues from:
Transfers in - - - - 75,000
Total revenues - - - - 75,000
Expenses for:
Equipment purchases:
City Council - - - - -
Administration - - - - -
Administrative Services - - - - -
Police - - - - -
Fire - - - - -
Community Development - - - - -
Public Works - - - - -
Total expenses - - - - -
Revenues over(under) expenses - - - - 75,000
Ending cash balance $ - $ - $ - $ - $ 75,000
NOTES:
This is a new fund, established in 2015; recommended by Management Partners' organizational review.
Page 112 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
PROJECTS ACCUMULATION INTERNAL SERVICE FUND
This Fund is established with the adoption of the 2015/14 budget. Its purpose is to account for the
accumulation of funds for capital projects.
Page 113 of 218
CITY OF MORRO BAY
201S/16 PROPOSED BUDGET
PROJECT ACCUMULATION INTERNAL SERVICE FUND
Beginning cash balance
Revenues from:
Transfers in
Total revenues
Expenses for:
Projects:
City Council
Administration
Administrative Services
Police
Fire
Community Development
Public Works
Total expenses
Revenues over(under)expenses
Ending cash balance
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
- - - 200,000
- - - 200,000
200,000
$ _ $ _ $ - $ - $ 200,000
NOTES:
This is a new fund, established in 2015; recommended by Management Partners' organizational review.
Page 114 of 218
Fn
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 115 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SPECIAL ASSESSMENT DISTRICTS FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ 55,794 $
601929
$ 59,186
$ 651594 $
68,426
Revenues:
Property tax assessments:
North Point
5,645
5,645
5,645
5,645
5,645
Loprena
2,832
2,832
2,832
2,832
2,832
Total revenues
8,477
8,477
8,477
8,477
8,477
Expenditures:
North Point
(3,342)
(10,220)
(2,069)
(5,645)
(2,200)
Loprena
-
-
-
-
5,000
Subtotal expenditures
(3,342)
(10,220)
(2,069)
(5,645)
7 200
Revenues over(under) expenditures
5,135
(1,743)
6,408
2,832
1,277
Ending cash balance
$ 60,929 $
59,186 $
65,594 $
68,426 $
69,703
NOTES:
Actual cash balances at 6/30/2014:
North Point $ 30,724
Loprena $ 34,870
Page 116 of 218
FIA
9M
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 117 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
CLOISTERS ASSESSMENT DISTRICT FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ (23,227)
$ (86,912) $
(61,641) $
50,726
$ 70,670
Revenues from:
Cloisters assessment
152,513
145,375
151,429
148,944
148,944
Interest income
-
-
154
-
-
Transfer in from General Fund
-
-
87,444
-
-
Total revenues
152,513
145,375
239,027
148,944
148,944
Expenditures
(216,198)
(120,104)
(126,660)
(129,000)
(144,500)
Revenues over (under) expenditures
(63,685)
25,271
112,367
19,944
4,444
Ending cash balance (reserve)
$ (86,912)
$ (61,641) $
50,726 $
70,670
$ 75,114
NOTES:
With the 2012/13 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.
Page 118 of 218
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 119 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
TRUST AND AGENCY - GENERAL PLAN MAINTENANCE FEE
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ 63,622
$ 71,254
$ 79,140
$ 90,795
$ 98,895
Revenues from:
Maintenance fees
7,632
7,886
11,655
8,100
10,000
Expenditures
-
-
-
-
-
Revenues over (under) expenditures
7,632
7,886
11,655
8,100
10,000
Ending cash balance
$ 71,254
$ 79,140
$ 90,795
$ 98,895
$ 108,895
NOTES:
Money began accumulating in this account in July 2006.
Page 120 of 218
,"W
n
n
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 121 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
MORRO BAY/CAYUCOS SANITARY DISTRICT WASTEWATER TREATMENT FACILITY FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance
$ -
$ -
$ _
$ _
$ _
Revenues from:
Charges for services
1,905,975
1,940,611
2,691,389
3,412,734
4,937,063
Other revenue
-
6,834
-
-
-
Total revenues
1,905,975
1,947,445
2,691,389
3,412,734
4,937,063
Expenses for:
Personnel
(742,696)
(787,838)
(808,783)
(840,829)
(871,782)
Supplies
(251,228)
(318,853)
(328,026)
(420,600)
(343,600)
Services
(743,203)
(793,308)
(813,848)
(900,305)
(988,681)
Other (no depreciation)
-
-
(46,847)
-
(2,000)
Capital improvements
(85,580)
-
-
(1,221,000)
(465,000)
Capital improvements (City only)
(68,283)
(28,267)
(686,882)
-
(2,234,000)
IT Replacement Fund
-
-
-
-
(2,000)
General Fund administration
(14,985)
(19,179
(7,003)
(30,000)
(30,000)
Total expenses
(1,905,975)
(1,947,445)
(2,691,389)
(3,412,734)
(4,937,063)
Revenues over(under) expenses
Ending cash balance $ - $ - $ _ $ _ $ _
Page 122 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GOVERNMENTAL IMPACT FEES ACCUMULATION FUND
This Fund was established in October 2007, when Council enacted 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.
Page 123 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
GOVERNMENTAL IMPACT FEES ACCUMULATION FUND
Beginning cash balance
Revenues from impact fees:
Administration
Police
Fire
Streets
Storm drain maintenance
Parks
Total revenues
Expenditures for:
Administration
Police
Fire
Streets
Storm drain maintenance
Parks
Transfers out
Total expenditures
Revenues over(under) expenditures
Ending cash balance
NOTES:
Actual collections to date:
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ 335,098 $ 401,422 $ 551,465 $ 653,575 $ 288,162
16,830
40,935
24,221
10,000
20,000
5,429
13,370
7,813
2,500
7,500
5,972
14,707
8,594
2,500
8,000
25,068
61,501
35,940
15,000
30,000
1,180
6,436
1,562
-
1,000
11,845
13,094
23,980
10,000
20,000
66,324
150,043
102,110
40,000
86,500
- 405,413 -
- - - 405,413) -
66,324 150,043 102,110 (365,413) 86,500
$ 401,422 $ 551,465 $ 653,575 $ 288,162 $ 374,662
Inception to
Adopted
2011/12
2012/13
2013/14
2014/15
Total
Administration
$ 95,544 $
40,935 $
24,221 $
10,000 $
170,700
Police
31,196
13,370
7,813
(42,500)
9,879
Fire
34,118
14,707
8,594
(42,500)
14,919
Streets
145,934
61,501
35,940
(225,413)
17,962
Storm drain maintenance
6,372
6,436
1,562
-
14,370
Parks
88,258
13,094
23,980
(65,000)
60,332
$ 401,422 $
150,043 $
102,110 $
(365,413) $
288,162
For the 2014/15 budget, the transfer out is adopted for Police ($45k), Fire ($45k) and Parks ($25k) vehicles to
be purchased through the General Fund Vehicle Replacement Fund, a transfer for the Morro Creek Bridge ($240,413), and
funding for the Tidelands Park playground ($50k).
In February 2015, the decision was made not to purchase the Parks pickup truck.
Page 124 of 218
IN.r
J
1
CITY OF MORRO BAY
2015/16 PROPOSED 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.
This Fund was established to manage the special revenue fees collected.
Page 125 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
PARK IN -LIEU FEES FUND
2014/15 2015/16
2011/12
2012/13
2013/14
Amended Proposed
Actual
Actual
Actual
Budget Budget
Beginning cash balance
$ 25,014 $
20,381 $
65,034
$ 85,579 $ -
Revenues from:
Impact fees
9,020
63,881
43,840
- -
Interest income
128
292
494
- -
Other
-
-
-
- -
Total revenues
9,148
64,173
44,334
- -
Capital outlay
(13,781)
(19,520)
(23,789)
(85,579) -
Ending cash balance
$ 20,381 $
65,034 $
85,579
$ - $ -
NOTES:
The expenditure in 2014/15 is for the Del Mar parking lot upgrade.
Page 126 of 218
W
n
�W
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
STATE PARK MARINA SPECIAL REVENUE FUND
This Fund manages the marina concessions revenues that are received for the planning and
environmental review of the proposed dredging and renovation of the State Park Marina.
Page 127 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
STATE PARK MARINA SPECIAL REVENUE FUND
Beginning cash balance
Revenues from:
Concessions
Intergovernmental
Interest income
Total revenues
Expenditures:
Dredging
Revenues over(under) expenditures
Ending cash balance
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
$ 280,674 $ 334,371 $ 187,267 $ 245,327 $ 245,327
66,791 67,184 73,143 65,000 70,000
183,680 1,129,228 - - -
700 - - - -
251,171 1,196,412 73,143 65,000 70,000
ri
(197,474) (1,343,516) (15,083) (65,000) (70,000)
53,697 (147,104) 58,060 - -
$ 334,371 $ 187,267 $ 245,327 $ 245,327 $ 245,327 Vol
Page 128 of 218
•.000
CITY OF MORRO BAY
2015/16 PROPOSED 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.
Page 129 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
HOUSING IN -LIEU FUND
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Beginning cash balance $ 666,927 $ 120,183 $ 176,590 $ 160,502 $ 159,502
Revenues from:
Impact fees
8,286
56,278
11,471
-
10,000
Interest income
3,261
129
1,031
-
-
Other
-
-
25,000
-
-
Transfers in
40,776
-
9,410
-
-
Total revenues
52,323
56,407
46,912
-
10,000
Expenditures for:
Services
(599,067)
-
-
-
-
Transfer out to General Fund
-
-
(63,000)
1,000
Total expenditures
(599,067)
-
(63,000)
(1,000)
-
Revenues over(under) expenditures
(546,744)
56,407
(16,088)
(1,000)
10,000
Ending cash balance
$ 120,183 $
176,590
$ 160,502 $
159,502 $
169,502
NOTES:
On 12/29/11, $600,000 was transferred to PSCDC Morro del Mar for a project at 555 Main St.
The 2013/14 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 2014/15 transfer out to General Fund is for the Council bequeathal to the Housing Trust Fund ($1,000).
Page 130 of 218
vI
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
WATER ACCUMULATION FUND
This Fund was established to collect impact fees and excess operating revenue for use on capital
improvement projects or to cover cash shortages.
Page 131 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
WATER ACCUMULATION FUND
2014/15 2015/16
2011/12 2012/13 2013/14 Amended Proposed
Actual Actual Actual Budget Budget
Beginning cash balance $ 4,852,454 $ 4,360,525 $ 4,135,073 $ 2,354,442 $ 2,089,101
Revenues from:
Impact fees
6,920
42,408
28,075
25,000
30,000
Interest income
40,977
18,669
20,415
5,000
-
Other income
218
-
414
-
-
Subtotal
48,115
61,077
48,904
30,000
30,000
Transfers in
135,864
191,829
-
500,000
383,672
Total revenues and transfers in
183,979
252,906
48,904
530,000
413,672
Capital improvements
-
(331,008)
(1,829,535)
(200,000)
(1,660,000)
Transfer out to operating fund
(675,908)
(147,350)
-
(595,341)
-
Total expenses
(675,908)
(478,358)
(1,829,535)
(795,341)
(1,660,000)
Revenues over(under)expenditures
(491,929)
(225,452)
(1,780,631)
(265,341)
(1,246,328)
Ending cash balance $
4,360,525 $
4,135,073 $
2,354,442 $
2,089,101 $
842,773
Page 132 of 218
,..
J
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
SEWER ACCUMULATION FUND
This Fund was established to collect impact fees and excess operating revenue for use on capital
improvement projects or to cover cash shortages.
Page 133 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
Beginning cash balance
Revenues from:
Impact fees
Interest income
Subtotal
Transfers in from:
Capital improvement
Revenue fund
Subtotal
Total revenues and transfers in
Capital improvements
Transfer out to:
Sewer Equipment Replacement Fund
Sewer Revenue Fund
Subtotal
Total capital and transfers out
Revenues and transfers over(under)
capital improvements and transfers out
Ending cash balance
SEWER ACCUMULATION FUND
2011/ 12
Actual
2012/13
Actual
2014/15 2015/16
2013/14 Amended Proposed
Actual Budget Budget
$ 2,972,051 $ 3,844,505 $ 3,689,625 $ 3,939,596 $ 2,185,737
12,703
66,533
54,256
-
50,000
33,523
16,851
23,508
-
-
46,226
83,384
77,764
-
50,000
2,027,123
1,818,651
362,899
650,000
-
2,027,123
1,818,651
362,899
650,000
-
2,073,349
1,902,035
440,663
650,000
50,000
(1,200,895)
(2,031,915)
-
(60,000)
(1,320,000)
-
(25,000)
(115,000)
(115,000)
(140,000) 1.00
-
-
(75,692)
(2,228,859)
(753,162)
-
(25,000)
(190,692)
(2,343,859)
(893,162)
(1,200,895)
(2,056,915)
(190,692)
(2,403,859)
(2,213,162)
872,454 (154,880) 249,971 (1,753,859) (2,163,162)
$ 3,844,505 $ 3,689,625 $ 3,939,596 $ 2,185,737 $ 22,575
Page 134 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
HARBOR ACCUMULATION FUND
This Fund was established to collect excess operating revenue for use on capital improvement projects
or to cover cash shortages.
Page 135 of 218
CITY OF MORRO BAY
2015/16 PROPOSED BUDGET
HARBOR ACCUMULATION FUND
2014/15
2015/16
2011/12
2012/13
2013/14
Amended
Proposed
Actual
Actual
Actual
Budget
Budget
Beginning cash balance $
1,041,838 $
1,395,536 $
1,248,688 $
893,904 $
573,581
Revenues from:
Interest income
12,098
5,886
7,127
-
-
Transfers in from:
Operating fund - Dynegy
-
-
-
-
-
Capital projects fund
-
-
-
-
-
Launch ramp
22,332
18,589
21,639
2,677
10,470
Operating fund
319,268
-
95,311
177,000
-
Subtotal
341,600
18,589
116,950
179,677
10,470
Total revenues and transfers in
353,698
24,475
124,077
179,677
10,470
Capital improvements
-
(140,323)
(198,861)
(500,000)
(565,000)
Transfers out to:
Operating fund
-
-
-
-
-
Equipment replacement fund
-
(31,000)
(280,000)
-
-
Subtotal
-
(31,000)
(280,000)
-
-
Total capital and transfers out
-
(171,323)
(478,861)
(500,000)
(565,000)
Revenues and transfers over(under)
capital improvements and transfers out
353,698
(146,848)
(354,784)
(320,323)
(554,530)
Ending cash balance $
1,395,536 $
1,248,688 $
893,904 $
573,581 $
19,051
Page 136 of 218
M
n
ORDINANCE NO.546
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY ESTABLISHING THE
MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT
(MBTBID), FIXING THE BOUNDARIES THEREOF, AND PROVIDING FOR
THE LEVY OF A BUSINESS ASSESSMENT TO BE PAID BY
THE HOTEL BUSINESSES IN SUCH DISTRICT
THE CITY COUNCIL
CITY OF MORRO BAY, CALIFORNIA
WHEREAS, on February 23, 2009, the City Council of the City of Morro Bay adopted
Resolution No. 08-09 entitled, "Resolution of the City Council of the City of Morro Bay, California
Declaring Its Intention to Establish the Morro Bay Tourism Business Improvement District (MBTBID),
Declaring Its Intention to Levy an Assessment on Lodging Businesses Within Such District, and Fixing
the Time and Place of a Public Meeting and a Public Hearing Thereon and Giving Notice Thereof'; and
WHEREAS, as specified in such Resolution, the boundaries of the district encompass the City
of Morro Bay and there are no separate benefit zones within the district; and
WHEREAS, said Resolution was published and copies thereof were duly mailed and posted, all
as provided by state law and specified in the Resolution; and
WHEREAS, pursuant to Resolution No. 08-09 a public meeting concerning the formation of
said district was held before the City Council on March 23, 2009 at 6 p.m. in the City Council Chambers
at the Veterans Hall located at 209 Surf Street in Morro Bay; and
WHEREAS, pursuant to Resolution No. 08-09 a public hearing concerning the formation of said
district was held before the City Council on April 13, 2009 at 6 p.m, in the City Council Chambers at the
Veterans Hall located at 209 Surf Street in Morro Bay; and
WHEREAS, all written and oral protests made or filed were duly heard, and testimony for and
against the proposed action was received and considered; and
WHEREAS, the City Council determined that there was no majority protest within the meaning
of Streets and Highways Code Section 36525, as written protests were not received from owners of
businesses in the proposed district which would pay fifty percent (50%) or more of the assessments
proposed to be levied; and
WHEREAS, protests are weighted based on the assessment proposed to be levied on each hotel.
For purposes of the initial formation of the district, the proposed assessment to be levied was calculated
based on the assessment rate multiplied by the most recent available data for the hotels' rental revenues.
Ordinance 546 - hM BID
Page 187 of 218
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Morro Bay as woo,
follows:
SECTION 1. Pursuant to authority granted under the Parking and Business Improvement Area
Law of 1989, California Streets and Highways Code Sections 36500 et seq., the City of Morro Bay
Tourism Business Improvement District (MBTBID) is hereby established in the City of Morro Bay as
herein set forth and all hotel establishments in the district established by this ordinance shall be subject
to any amendments made hereafter to said law or to other applicable laws.
SECTION 2. The City Council of the City of Morro Bay finds that hotel establishments within
the Morro Bay Tourism Business Improvement District will be benefited by the improvements and
activities funded by assessments to be levied.
SECTION 3. Chapter 3.60 (Tourism Business Improvement District) is hereby added to Title 3
(REVENUE AND FINANCE) of the Morro Bay Municipal Code to read as follows:
3.60.010 Title.
This chapter shall be known as the "City of Morro Bay Tourism Business Improvement District
Law."
3.60.020 Definitions.
A. "City Council" shall mean the City Council of the City of Morro Bay.
B. "City Advisory Body" shall mean the Advisory Body appointed by the City Council,
pursuant to this chapter.
C. "District" shall mean the City of Morro Bay Tourism Business Improvement District (or ..�
"MBTBID") created by this chapter and as delineated in Section 3.60.040.
D. "Hotel" shall mean any structure, or any portion of any structure, which is occupied or
intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and
includes any hotel, motel, or bed and breakfast that pays Transient Occupancy Tax. For purposes of this
chapter the definition of"hotel" shall not include RV parks and vacation rentals.
E. "Law" shall mean the Parking and Business Improvement Area Law of 1989, California
Streets and Highways Code Sections 36500 et seq., as amended.
F. "Operator" shall mean the person who is the proprietor of the hotel, whether in the capacity
of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator
performs his/her functions through a managing agent of any type or character other than an employee,
the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the
same duties and Iiabilities as his/her principal. Compliance with the provisions of this chapter by either
the principal or the managing agent shall, however, be considered to be compliance by both.
G. "Transient" means any person who exercises occupancy or who is entitled to occupancy, by
reason of concession, permit, right of access, license, or other agreement for a period of thirty (30)
consecutive calendar days or less, counting portions of calendar days as full days.
3.60.030 Authorized Uses.
This ordinance is made and enacted pursuant to the provisions of the Parking and Business
Improvement Area Law of 1989 (Sections 36500, et. seq., of the Streets and Highways Code) (the
"law"). The purpose of forming the district as a business improvement area under the Parking and
F5
Ordinance 546 - WTBID
Page 188 of 218
Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities
and programs promoting tourism which will benefit the operators of hotels in the district through the
promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination. It is
the intent of this chapter to provide a supplemental source of funding for the promotion of tourism in t11e
district. The specific services, activities and programs to be provided by the district are as follows:
A. The general promotion of tourism within the district is to include costs as specified in the
business plan to be adopted annually; and
B. The marketing of conference, group, and film business that benefits local tourism and the
local hotel industry in the district; and
C. . The marketing of the district to the travel industry in order to benefit local tourism and the
local hotel industry in the district.
3.60.040 Boundaries.
The boundaries of the MBTBID shall be the boundaries of the City of Morro Bay.
3.60.050 Levy of assessment and exemptions.
The MBTBID shall include all hotel businesses located within the MBTBID boundaries.
Commencing June 1, 2009, the assessment to be levied on all hotel businesses within the MBTBID
boundaries shall be based upon 3% of the rent charged by the operator per occupied room per night for
all transient occupancies. Commencing on June 1, 2010, and from year to year thereafter, the assessment
to be levied on all hotel businesses within the MBTBID boundaries shall be based upon 2% of the rent
charged by the operator per occupied room per night for all transient occupancies. The assessment shall
be collected monthly, based on percent (%) of the rent charged by the operator per occupied room per
night in revenues for the previous month. New hotel businesses within the boundaries shall not be
exempt from the levy of assessment authorized by Section 36531 of the law. Assessments pursuant to
the MBTBID shall not be included in gross room rental revenue for the purpose of determining the
amount of the transient occupancy tax. The value of extended stays of more than thirty (30) consecutive
calendar days shall be exempt from the levy of assessment.
3.60.060 Annual review of assessment.
All of the assessments imposed pursuant to this chapter shall be reviewed by the Morro Bay City
Council annually, based upon the annual report prepared by the Advisory Board appointed pursuant to
this chapter and Sections 36530 and 36533 of the law. After approval of the annual report, the Morro
Bay City Council shall follow the hearing process as outlined in Section 36534 of the law. At the public
hearing the Morro Bay City Council shall hear and consider all protests. If written protests are received
from hotel businesses in the district paying fifty percent (50%) percent or more of the annual
assessment, no further proceedings to continue the levy of assessments shall take place. The protests
shall be weighted based upon the annual assessment for the prior year by each hotel business.
3.60.070 Imposition of assessment.
The Morro Bay City Council hereby levies and imposes and orders the collection of an additional
assessment to be imposed upon hotel businesses in the district described above, which shall be
calculated pursuant to Section 3.60.050 above. Such levy shall begin on June 1, 2009.
Ordinance 546 - MBTBID
Page 189 of 218
3.60,080 Use of revenue. ,.000
The activities to be provided by the MBTBID will be funded by the levy of the assessments and
any voluntary contributions. The total revenue from the levy of assessments and any other voluntary
contributions within the MBTBID shall not be used to provide improvements or activities outside the
MBTBID or for any purpose other than the purposes specified in the resolution of intention. The
proceeds of the hotel business assessment and any other voluntary contributions shall be spent to
administer marketing and visitor programs to promote the City of Morro Bay as a tourism visitor
destination. All funds shall be expended consistent with the purposes of this Section. Funds remaining at
the end of any MBTBID term may be used in subsequent years in which MBTBID assessments are
levied as long as they are used consistent with the requirements of this Section. The Morro Bay City
Council shall consider recommendations made by the Advisory Board created by Section 3.60.100 of
this ordinance as to the use of assessment revenue.
3.60.090 Delinquency, penalty and interest.
Any hotel business that fails to remit any assessment imposed by this ordinance within the time
required shall pay a penalty of ten percent (10%) of the assessment amount in addition to the
assessment. Any and all remedies available to the City of Morro Bay for non-payment of.assessment or
taxes shall be applicable in the event of non-payment of an assessment under this chapter. Any penalty
and interest fees collected from a hotel business due to delinquency shall go to the City of Morro Bay.
3.60.100 Advisory board.
The City Council shall appoint an Advisory Board pursuant to Section 36530 of the California
Streets and Highways Code in order to make recommendations to the City Council on the expenditure of
revenues derived from the levy of assessments, on proposed improvements and activities, and on the
method and basis of levying assessments, The City Council may, by resolution, adopt bylaws governing woo
the membership and operations of the Advisory Board.
3.60.110 Severability.
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be
invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions of the ordinance. The Morro Bay City Council hereby
declares that it would have passed this ordinance and each section, subsection, sentence, clause and
phrase hereof, irrespective of the fact that any one or more of the sections, subsections, sentences,
clauses or phrases hereof be declared invalid or unconstitutional.
3.60.120 Modification or disestablishment.
The City of Morro Bay, by ordinance, may modify the provisions of this chapter and may
disestablish the district or parts of the district, after adopting a resolution of intention to such effect.
Such resolution shall describe the proposed change or changes, or indicate that it is proposed to
disestablish the district, and shall state the time and place of a hearing to be held by the Morro Bay City
Council to consider the proposed action. If the operators of hotels which pay fifty percent (SO%) or more
of the assessments in the district file a petition with the City Clerk of the City of Morro Bay requesting
the Morro Bay City Council to adopt a resolution of intention to modify or disestablish the district, the
Morro Bay City Council shall adopt such resolution and act upon it as required by law. Signatures on
such petition shall be those of a duly authorized representative of the operators of hotels in the district.
In the event the resolution proposes to modify any of the provisions of this chapter, including changes in
..rr
Ordinance 546 - MBTBID
Page 190 of 218
APA
the existing assessments or in the existing bouindaries of the district, such proceedings shall terminate if
protest is made by the operators of hotels which pay fifty percent (50%) or more of the assessmentsin
the district, or in the district as it is proposed to be ejilarg&d,
in the event the resolution proposes dinstablishniefit of the district,- the Morro orro Day City Counci
l
shall disestablish the district, unless attuc-li hearing protest against disestabl ishment is n1ade by the
operators of hotels paying fifty percent (50YO) or more of as the sessnients in.the district.
MO.. 130 Effective date.
The City Clerk of the City of Morro Bay shall certify to the passage ofthis ordinance by the Morro
B a'y City Council and cause. it to he_ posted in three conspicuous
in the City of Morro Bay and it
.shall take effect on the thirty fitst day after it is approved by the ,Morro Bay City Council.
SECTION 4. The, City Clerk shalt cause
this ordinance to be published once within fifteen (15)
days after its passage in a newspaper of general circulation, printed, publisfied.and circulated in the city
in: accordance with Section 36933 of the Government Code, .
INTRODUCED at the regular meeting of the City Council of the City dfMorfo Bay held on the
13th day of April of C6,
Smukler. by motion tiftc.ilmember -Borchard and seconded by Couiti"ember
PASSED, APPROVED -AND ADOPTED by the City Council. . of the City
of Morro Bay -on the
27'hd4Y;of *April 2009 by the following vote to -wit:
AYES,::
Bo;rchard,.Granthah;, Smukler, Winholtz, Peters
NOES--:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
Ordhiance 546 - MOTH)
Page 191 of 218
ORDINANCE NO.562
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY AMENDING
THE MORRO BAY MUNICIPAL CODE SECTION 3.60.050
REGARDING INCREASING THE ASSESSMENT TO THE
MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on July 12, 2010, the City of Morro Bay Council adopted Resolution No. 40-10
entitled, "Resolution of the City Council of -the City of Morro Bay, California Declaring its
Intention to Adopt an Ordinance Increasing the Assessment on Lodging Businesses Within the
Morro Bay Tourism Business Improvement District, and Fixing the Time and Place of a Public
Meeting and a Public Hearing Thereon and Giving Notice Thereof"; and
WHEREAS, as specified in such Resolution, the City Council declared its intention to consider
adopting an ordinance to increase the amount of the Morro Bay Tourism Business Improvement District's
assessment from 2% to 3%; and
WHEREAS, said Resolution was published and copies thereof were duly mailed and posted, all
as provided by State law and specified in the Resolution; and
WHEREAS, pursuant to Resolution a public meeting concerning the increase in the assessment •.�
was held before the City Council on August 9, 2010 at 6 p.m. in the City Council Chambers at the
Veteran's Hall located at 209 Surf Street in Morro Bay; and
WHEREAS, pursuant to Resolution a public hearing concerning the increase in the assessment
was held before the City Council on September 13, 2010 at 6 p.m. in the City Council Chambers at the
Veteran's Hall located at 209 Surf Street in Morro Bay; and
WHEREAS, all written and oral protests fnade or filed were duly heard, and testimony for and
against the proposed action was received and considered; and
WHEREAS, the City Council determined that there was no majority protest within the meaning
of Streets and Highways Code Section 36525, as written protests were not received from owners of
businesses in the proposed district which would pay fifty percent (50%) or more of the assessments
proposed to be levied; and
WHEREAS, protests are weighted based on the assessment proposed to be levied on each hotel.
For purposes of the initial formation of the district, the proposed assessment to be levied was calculated
based on the assessment rate multiplied by the most recent available data for the hotels' rental revenues.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Morro Bay that
Morro Bay Municipal Code Section 3.60.050 be amended as follows:
14114
Pa6e 192 of 218
3.60.050 Levy of assessment and . exempfiofis:
The M3TBID. shall -include all hotel. businesses; located within the &MTBID boundaries.
Commencidg June 1, 200% Ilie, Assessment to be levied on all hotel businesses within
the IMBID boundaries
es shall be based upon 3% of the rent charged by fhe operator per
occupied room peraightfior 01 transient occupancies.. Commencing 94 igne, 1, -2010, and
from Year to ye* air thereafter, the assessment to be levied .on all hotel businesses witliin the
MBT.BID boundaries shall be based upon 2% of the rent charged by the 606hdtor per
occupied room per night for all transient occupancies. The Assessment shall be collectediel
montl> y, based onpercent (0/o) of the: rent charged by the operator per occupied room per
night in revenues for the previous month. New -hotel businesses within the bounda i ries
shall not be exempt from the levy of asse'ssthentauthoriz&d. by Section 16531 ofthd law....
.Assessments, pursuant to the. M8.T_8ID. shall not bei; n-Qfudcd. in gross -room rental revenue
for purp
ose of determining the amount of the transient occupancy tax.' The value of
extended stays of more than thirty (30) consecutive calendar days shall be exempt -fi.q.tn
the lev'y* of assessment. Any other exclusion shall be based on benefit -and the policies and
ordinances.:,of the collecting ageAcy.
A summary of this ordinance. together with. the names of Council members voting for And
Against it, shall be Oublishki at least flv.e (5) days prior to its hriat ad*6pti o'n,, in.The Tribune, .a newspaper
Published and circulated in the City of Morro Bay. This- ordinance shall go into effect on November 1,
2010.
.INTRODUCED at the regular meeting of the City Council of the City ofMor'rioBay -held. 6n the
h 6
10 :134 day of . m Spptembor'2010, by .motion of Cbuncflmemb6r Grantham and . seconded by Councilinember
PASSED, "PROVED AND ADOPTED by the City Council ofth& City of Morro Bay on the
he
21"'day- of 'September, 2616 by the Nlown g VbW.
-AYES: ------ .1.3orphard, Grantham, Smukler,'Winhol.t.zi Peters
NOES: None
ABSENT: 'None
APPROVED AS TO FORM:
WZ9,j
ROB.ERT SCHULT(_ ty Attomey
Page 193 of 218
IM000
RESOLUTION NO.47-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY
ADOPTING THE DEVELOPMENT IMPACT FEE CALCULATION AND
NEXUS REPORT FOR THE CITY OF MORRO BAY, CALIFORNIA, AND
SUBSEQUENT DOCUMENTATION ACCOMPANYING SUCH REPORT AND
ESTABLISHING DEVELOPMENT IMPACT FEES FOR ALL DEVELOPMENT
WITHIN THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City Council decided that it was necessary and desirable to
conduct a comprehensive review of the City's development impact fees to determine
whether those fees are adequate to defray the cost of public facilities related to
development projects; and
WHEREAS, the City contracted with MuniFinancial for a comprehensive
evaluation of the City's existing development impact fees; and
WHEREAS, MuniFinancial prepared a report, entitled the Public Facilities Fee
Study for the City of Morro Bay, California, in September of 2007 (attached hereto as
Exhibit A) that recommends an increase to the City's development impact fees and
explains the nexus between the imposition of the fee and the estimated reasonable cost of
providing the service for which the fee is charged; and
WHEREAS, the Public Facilities Fee Study for the City of Morro Bay,
California, has been available for public review and comment; and
WHEREAS, following the issuance of Public Facilities Fee Study for the City of
Morro Bay, California, the City held a public hearing on September 10, and September
24, 2007 and received additional information; and
WHEREAS, the Public Facilities Fee Study for the City of Morro Bay,
California substantiates the need for an increase in development impact fees amongst
different categories of services and facilities provided by the City; and
WHEREAS, the City has been imposing various impact fees, including fees for
sewer water and traffic, among others; and
WHEREAS, the City Council desires to adopt new development impact fees, in
accordance with the nexus calculations and recommendations in the Report; and
M
Page 194 of 218
WHEREAS, after conducting another public hearing and taking further
testimony, the City Council has determined that these fees shall be reduced by 50 percent
to the greatest extent practical without impacting the current fees, and that these revised
impact fees are provided in Exhibit B; and
WHEREAS, it is the intent of the City Council to exempt any projects currently
submitted for discretionary permits and/or building permits from paying the new impact
fees if those projects were submitted for review to the City by September 24, 2007.
WHEREAS, in compliance with the Mitigation Fee Act (Government Code
section 66000 et seq.), the City Council held a public hearing to solicit public input on the
proposed development impact fees on September 10, and September 24, 2007.
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF MORRO
BAY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION I. Findings Pursuant to Government Code Section 66001,
The City Council finds and determines that the Public Facilities Fee Study (hereinafter
"Report") complies with California Government Code section 66001 by establishing the
basis for the imposition of fees on new development. This finding is based on the fact
that the Report:
(a) Identifies the purpose of the fee;
(b) Identifies the use to which the fee will be put;
(c) Shows a reasonable relationship between the use of the fee and the type of
development project on which the fee is imposed;
(d) Demonstrates a reasonable relationship between the need for the public
facilities and the type of development projects on which the fee is imposed;
and
(e) Demonstrates a reasonable relationship between the amount of the fee and the
cost of the public facilities or portion of the public facilities attributable to the
development on which the fee is imposed.
SECTION 2. Fees for Uses Consistent with the Report.
The City Council hereby determines that the fees collected pursuant to this resolution
shall be used to finance the public facilities described or identified in the Report, the
Master Facilities Plan or such other public facility master plans as may from time to time
be adopted by the City Council.
SECTION 3. Approval of Items in Report.
The City Council has considered the specific project descriptions and cost estimates
identified in the Report and hereby approves such project descriptions and cost estimates
and finds them reasonable as the basis for calculating and imposing certain development
impact fees.
Resolution No. 47-07
Development Impact Fees
Page 195 of 218
.rr
SECTION 4. Consistency with General Plan.
The City Council finds that the projects and fee methodology identified in the Report are
consistent with the City's General Plan and Local Coastal Plan.
SECTION 5. Differentiation Among Fees.
The City Council finds that the development impact fees recommended in the Report are
separate and different from other fees the City may impose as a condition of final map
approval, building permit issuance or tentative or parcel map approval pursuant to its
authority under the Subdivision Map Act, the Quimby Act, and the City's implementing
ordinances, as may be amended from time to time, for, among other projects, the
construction of storm drainage, major thoroughfares and bridges and the acquisition of
parkland. In no event, however, shall a developer be required to pay for both a fee
imposed pursuant to the Subdivision Map Act and/or the Quimby Act and a portion of the
development impact fee as that would be used to fund the same type of facility as the fee
imposed pursuant to the Subdivision Map Act and/or the Quimby Act. In addition, this
resolution shall not be deemed to affect the imposition or collection of the water and
sewer connection fees authorized by the Municipal Code.
SECTION 6. CEQA Finding.
The adoption of the Report and the development impact fee are categorically exempt
from environmental review pursuant to section 15061(b)(3) of the California 1400�
Environmental Quality Act guidelines. The intent of the Report and development impact
fee is to provide one way to fund projects and services that have been identified in
environmental analyses of other planning efforts, including the General Plan EiR, and
various City master plans, among others.
SECTION 7. Adoption of Report.
The Public Facilities Fee Study by MuniFinancial for the City of Morro Bay,
California,is hereby adopted.
SECTION 8. Timing of Fee.
A development impact fee shall be imposed upon the issuance of any development permit
and shall be paid prior to issuance of a certificate of occupancy for the project, or at such
earlier time as permitted by law, as set forth in Government Code section 66007. A
"development permit" means any permit or approval from the City including, but not
limited to, subdivision map, revised final planned development, building permit or other
permit for construction, reconstruction, or addition.
RcsoArtion No. 47.07
Dmiopment Impact Fees
Page 196 of 218
M
SECTION 9. Amount of Fee.
The City Council hereby approves and adopts the development impact fees as set forth in
the Report attached to this resolution and incorporated herein. The Report sets forth the
aggregate amount imposed as a development impact fee for both residential and non-
residential land uses and also sets forth the breakdown of each development impact fee
by type of facility or service. The amount of the development impact fee shall be reduced
or a credit shall be applied towards the fee in proportion to the monetary cost of any
improvements installed that would have been funded by the development impact fee, The
amount of the development impact fees shall be modified annually each July 1 based on
the change in the Engineering News Record's construction cost index (ENR-CCI) as
reported for the twelve month period ending in April of each year (April 2007 ENR-CCI
= 7865). Further, the City Council shall formally review the development impact fees
once every two years, or whenever the City Council updates a major City Council policy
document that could have an impact on development impact fees, such as the General
Plan,
SECTION 10. Use of Fee.
The development impact fees shall be solely used for (1) the purposes described in the
Report; (2) reimbursing the city for the development's fair share of those capital
improvements already constructed by the City, or (3) reimbursing developers who have
already constructed public facilities described in the Report or the Master Facilities Plan
or other facility master plans adopted from time to time by the City Council, where those
facilities exceeded that needed to mitigate the impacts of the developers' project or
projects.
SECTION 11. Fee Determination by Square Footage.
Development impact fees for all land uses shall be based upon the square footage of the
building. The development impact fee categories are set forth in the Report, which have
been further revised in the fee program set forth in Exhibit B. Water and wastewater
development impact fees shall be based upon the meter size as set forth in the Report and
Master Fee Schedule.
SECTION 12.500 Square Foot Exemption,
Development impact fees shall not apply to the first 500 square feet of new square
footage of any proposed addition for single-family residential projects. Should the
addition exceed 500 square feet, the calculation of impact fees shall be based on the total
additional new square footage area.
Resolution No. 47-07
Development impaet Fees
Page 197 of 218
SECTION 13. Current Projects Exempt for New Impact Fees.
Any project submitted for either discretionary and/or building permit approval as of
September 24, 2007 shall be exempt from paying these new Development Impact Fess.
All other currently existing impact fees in effect on September 24, 2007 shall remain in
effect.
SECTION 14. Cumulative additions,
Whenever the cumulative quantity of new additional square footage improvements and
all other permitted additions during the preceding five-year period is over 500 square
feet, payment of impact fees for the total additional area constructed during the said five
year period shall be required.
SECTION 15. Prior Resolutions and Ordinances Superseded.
The development impact fees approved and adopted by this resolution shall take effect in
sixty (60) days and shall supersede previously adopted resolutions that set the amounts of
development impact fees.
SECTION 16. Severability.
If any action, subsection, sentence, clause or phrase of this resolution or the imposition of
a development impact fee for any project described in the Report or the application
thereof to any person or circumstance shall be held invalid or unconstitutional by a court .Mao,
of competent jurisdiction, such invalidity shall not affect the validity of the remaining
portions of this resolution or other fees levied by this resolution that can be given effect
without the invalid provisions or application of fees.
SECTION 17. Effective Date.
Consistent with California Government Code section 66017(a), the fees adopted by this
resolution shall take effect sixty (60) days following the adoption of this resolution by the
City Council.
Resolution No. 47-07
Nvelopment Impact Pees
Page 198 of 218
Mn
`•
PASSED AND ADOPTED by the City Council of the City of Morro Bay this 8th
day of October 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
i
ATTEST; AICEPETEF�S,
Mayor
�
BRIDGET AUER, City Clerk
APPROVED AS TO FORM:
ROBERT SC4City Attorney
Resolution No. 47-07
Development Impact Pees
Page 199 of 218
RESOLUTION NO.48-08
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MORRO BAY, CALIFORNIA
AUTHORIZING THE ANNUAL TRANSFER OF EXCESS
OPERATING CASH TO ACCUMULATION FUNDS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay's operating funds generally have
positive cash remaining at the end of each fiscal year; and
WHEREAS, the City of Morro Bay desires to identify that excess
operating cash by moving it to an accumulation fund; and
WHEREAS, moving the excess cash to the accumulation fund has the
potential to increase interest earnings in that fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay, California, that all excess operating cash will be moved to an
associated accumulation fund including, but not limited, to the following fund list:
OPERATING FUND ACCUMULATION FUND
General Fund
General Fund Accumulation
Water Revenue
Water Accumulation
Sewer Revenue
Sewer Accumulation
Harbor Operations
Harbor Accumulation
PASSED, APPROVED, AND ADOPTED, by the City Council of the City of
Morro Bay, at a regular meeting thereof held on the 11"' day of August 2008, by
the following vote to wit:
AYES:
DeMeritt, Grantham, Peirce,
NOES:
None
ABSENT:
None
Bridgett Baqer, City Clerk
Winholtz, Peters
�anice Peters, Miyor
Page 200 of 218
RESOLUTION NO.26-10
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY,
CALIFORNIA, ESTABLISHNG A PROCEDURE FOR REQUESTING MEASURE Q
FUNDING DURING THE ANNUAL BUDGET PROCESS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, Measure Q, a %s cent district sales tax, was approved by the voters in Morro
Bay in November 2006; and
WHEREAS, Measure Q was passed as a General Fund tax without a sunset clause; and
WHEREAS, Measure Q, in 2010, is the 4th largest revenue source with which the City
of Morro Bay has discretionary spending privileges; and
WHEREAS, the ballot language of the Measure is as follows:
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, sheet and pothole
repairs, improving storm drains to protect the bay fi-oln pollution,
mid other general city services, shall an ordinance be adopted
increasing the City sales tax by one-half cent, subject to
independent anutal financial audits, and establishing an
independent citizens' advisory connnittee to review annual
expenditures?
WHEREAS, to date, there have been no formal procedure for the submission of Measure
Q funding requests during the annual budget process.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, that the following procedures are adopted for the request of Measure Q funds
during the annual budget process:
1. Department Heads must submit Measure Q funding requests to the City
Manager/Administrative Services Director well in advance of the first
budget hearing.
2. The City Manager and Administrative Services Director shall initially
review and prioritize the requests to an "A" and a `B" list (if needed).
The "A" list shall include prioritized projects, and use the total
anticipated funding available. The "B" list shall continue from the "A"
list with the priority projects that fall outside the available Measure Q
funding amounts.
Page 201 of 218
Resolution No. 26-10
Page Two
3. The Department Head Team shall meet, review and recommend the "A"
and "B" lists to the City Council.
4. The recommendation shall be included in the preliminary annual budget
document.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 24°i day of May 2010, by the following vote:
AYES: Borchard, Grantham, Smukler, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
fb:j'jj�
�.
BRIDGE ESSL G, City Cle
Page 202 of 218
RESOLUTION NO. 10-11
CREATION OF A DEFERRED MAINTENANCE ACCOUNT TO PROVIDE
FUNDING SUPPORT FOR THE MANAGEMENT OF REAL PROPERTY ASSESTS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City's management of real property assets has lacked the resources
to adequately support a deferred maintenance account for all scheduled real property; and
WHEREAS, the City is in need of a funding source to address the City's
infrastructure, and the most ready source of funding at this time is the surplus revenue from
the sale of 781 Market Street Morro Bay California; and
WHEREAS, City staff would establish a new fund for General Fund Deferred
Maintenance (DMF) and would transfer approximately $201,000 from the initial payment of
said property with future contributions by City Council directive or encumbrance; and
WHEREAS, deferred maintenance is a direct responsibility of the maintenance
division of the Recreation and Parks Department which has prepared the included priority list
of maintenance tasks to be completed utilizing the allocations from the DMF or other readily
available resource; and
WHEREAS, the financial management plan for the DMF would follow current
procedures for interest bearing funds managed by the Director of Administrative Services
under the direction of the City Manager with City Council approval.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay, California, that the Administrative Services Director set up s new fund for
General Fund deferred maintenance and transfer approximately $201,000 in said account
from the proceeds of the sale of 781 Market Street, Mono Bay California 93442,
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 25,n day of January, 2011 on the following vote:
AYES:
NOES:
ABSENT
ATTEST:
Borchard, Johnson, Leage, Smukler, Yates
None
None
_mem. PIK!/,
Page 203 of 218
RESOLUTION NO.36-11
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY,
CALIFORNIA APPROVING A COOPERATION AGREEMENT BETWEEN
THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF MORRO BAY
FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM, THE EMERGENCY SOLUTIONS GRANT PROGRAM, AND
THE HOUSING OPPORTUNITIES FOR PERSONS
WITH AIDS (HOPWA) PROGRAM FOR FISCAL YEARS 2012-2014
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS,; and the County of San Luis Obispo ("County"), a political subdivision
of the State of California, and the City of Morro Bay ("City") a municipal corporation, desire
to participate in the Community Development Block Grant (CDBG) program administered by
the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, said program will promote the public health, safety and welfare by
providing grant funds to be used by the City and County to improve housing opportunities for
low and moderate -income households, to encourage economic reinvestment, to improve
community facilities and public services, and to provide other housing -related facilities, or
services; and
WHEREAS, the City desires to participate jointly with the County in said program;
and
WHEREAS, HUD requires that the panties enter into a cooperation agreement to
define their rights and obligations as a prerequisite of participation in the CDBG program; and
WHEREAS, the proposed cooperation agreement is consistent with the General Plan
and with City and County policies encouraging cooperation between agencies on issues of
regional significance such as affordable housing; and
WHEREAS, the proposed cooperation agreement will promote the public health,
safety and welfare by enabling the City and County to participate in the U.S. Department of
Housing and Urban Development's CDBG program under an "urban county" entitlement;
thus making available fiends for a variety of housing, economic development, and public
services programs not otherwise available; and
WHEREAS, the City and County enter into yearly subrecipient agreements which
establish administrative policies and procedures, performance standards, and guidelines for
funding specific CDBG programs and projects; and
Page 204 of 218
WHEREAS, the proposed cooperation agreement is not a "project" for purposes of
compliance with the provisions of the California Environmental Quality Act (CEQA) and the
City's CEQA Guidelines.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay, California, as follows:
1. The City Council hereby approves and authorizes the Mayor to enter into a
cooperation agreement with the County to enable joint participation in HM's CDBG
program.
2. The City Manager or her designee is hereby authorized to act on behalf of the City in
connection with the implementation of the agreement, ongoing operation of the CDBG
program, and other activities necessary to carry out the intent of the cooperation
agreement.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 24th day of May, 2011 on the following vote:
AYES: Borchard, Leage, Johnson, Smukler, Yates
NOES: None
ABSENT: None
ATTEST:
GO —.'. .mo. ` d:
S 1�
Page 205 of 218
RESOLUTION NO. 46-12
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA,
AFFIRMING THE INTENDED USE OF THE CITY'S ONE-HALF CENT DISTRICT
TRANSACTION TAX, COMMONLY KNOWN AS MEASURE Q
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, as of 2006, the City of Morro Bay had lost more than $7 million dollars as a
result of the State's efforts to balance its own budget; and
WHEREAS, in order for the City to increase its revenues to compensate for the loss, the City
hired the Lew Edwards Group to evaluate voter -approved revenue options; and
WHEREAS, based on the Lew Edwards Group's recommendation, the City placed a ballot
measure (Measure Q) on the November 2006 ballot, asking voters to approve a one-half cent district
transaction tax; and
WHEREAS, a volunteer community group formed a campaign committee to promote the
approval of the Measure Q, stressing to the public that the money would be used to replace the
earthquake -damaged Fire Station, provide equipment for public safety, maintain streets and repair
storm drains; and
WHEREAS, although the ballot measure language covered a wider scope of services than
those promoted to the citizens, it passed based on the campaign committee's efforts; and
WHEREAS, a Citizens Oversight Committee was established to ensure the proper use of the
Measure Q funds; and
WHEREAS, there is concern that future City Councils might not be aware of the intended
purpose of the district transaction, and may authorize spending those funds in areas other than those
promoted by the campaign committee and authorized by the voters.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, that the Measure Q funds be formally dedicated to the following purposes:
1) Improve the Fire Department
2) Enhance public safety
3) Street Maintenance
4) Storm drain maintenance and prevention of toxic runoff into the bay
Page 206 of 218
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the I I"' of September 2012, by the following vote:
AYES: Borchard, Johnson, Leage, Smukler, Yates
NOES: None
ABSENT: None
ATTEST:
uwo5a-
JAWEBOUCHER, City Clerk
WILLIAM YATES, a or
Page 207 of 218
RESOLUTION NO.48-13
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
DESIGNATING $399,000 IN PARKING IN -LIEU FUNDS
FOR REVISIONS TO THE PARKING IN -LIEU MAP AND IMPROVEMENTS
TO THE CITY -OWNED FRONT STREET AND TRIANGLE
PARKING LOT ADJACENT TO THE EMBARCADERO
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, In -Lieu Parking Fees were established, codified as Morro Bay Municipal
Code Section 17.44.020 A7, as a means through which public parking can be provided where it
is unfeasible to provide such parking as part of on -site development projects; and
WHEREAS, Mono Bay Municipal Code Section 17.44.020A.7.b states that monies
accumulated in the Parking In -Lieu Fund shall be used for planning, design, acquisition or lease
of land and development/redevelopment of public parking facilities; and
WHEREAS, on December 5, 2012, as part of the Amendments to the November 15,
2004 Agreement to Lease and Agreement Regarding Power Plant Modernization, Dynegy Morro
Bay LLC agreed to dedicate to the City the triangle -shaped property adjacent to the
Embarcadero; and
WHEREAS, on August 13, 2013, City Council directed staff to proceed with an interim
use permit, revisions to the parking in lieu map, and minor temporary improvements to the
triangle parking lot adjacent to the Embarcadero; and
WHEREAS, monies accumulated in said Parking In -Lieu Fund are to be used for
designated public parking tasks, and revisions to the Parking In -Lieu map and improvements to
the City -owned triangle parking lot adjacent to the Embarcadero is a good and valuable use of
Parking In -Lieu Funds.
NOW, THEREFORE, BE IT RESOLVED, by the City Council, City of Morro Bay,
California that improvements to the City -owned triangle parking lot adjacent to the Embarcadero
are hereby designated as a Parking In -Lieu Fund project in the amount of $399,000.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 8th day of October, 2013 by the following vote:
AYES: Irons, C. Johnson, N. Johnson, Smukler
NOES: None
ABSTAIN: Leage
J E L. IRONS, MAYOR
ATTEST:
J BOUCHER, CITY CLERK
Page 208 of 218
RESOLUTION NO.82-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY
CONSENTING TO THE INCLUSION OF THE CITY WITHIN THE PROPOSED
SAN LUIS OBISPO COUNTY TOURISM MARKETING DISTRICT (SLOCTMD)
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, tourism is an important contributor to the economy of the City and the
promotion of the City's tourist lodging establishments serves an important public purpose; and
WHEREAS, Visit San Luis Obispo County (VSLOC), is a non-profit organization that
promotes San Luis Obispo County through advertising, marketing, public relations and group sales
and wishes to establish a sustainable funding source to further those efforts; and
WHEREAS, the County of San Luis Obispo has initiated the formation of the proposed
SLOCTMD pursuant to the Property and Business Improvement District Law of 1994, Streets and
Highways Code sections 36600 et seq., to promote lodging businesses in San Luis Obispo County;
and
WHEREAS, Streets and Highways Code section 36620.5 provides a county may not form a
district within the territorial jurisdiction of a city without the consent of the city council of that city;
and
WHEREAS, the proposed SLOCTMD is an assessment district designed to provide specific
benefits directly to those entities being assessed; and
WHEREAS, marketing, advertising, promotions and sales efforts for assessed businesses
will increase overnight tourism which will then increase the demand for hotel/motel rooms, RV
spaces and vacation rentals; and
WHEREAS, the proposed SLOCTMD would include all lodging businesses located within
the boundaries of San Luis Obispo County that currently also pay transit occupancy taxes, and
WHEREAS, the Morro Bay hotel/motel/B&B owners, RV park owners and vacation rental
owners that (i) would be levied through the SLOCTMD and (ii) account for 53.6% of the total gross
receipts reported in 2013 by those lodging properties support the formation of the proposed
SLOCTMD, as providing a means to collectively market the San Luis Obispo County area and
remain competitive with comparable markets; and
WHEREAS, at its meeting of November 17, 2014, the Morro Bay Tourism Bureau passed a
motion of support for the SLOCTMD.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, as follows:
Page 209 of 218
1. The recitals set forth herein are true and correct.
2. Pursuant to Streets and Highways Code section 36620.5, the City Council consents to the
inclusion of the City of Morro Bay within the proposed San Luis Obispo County Tourism Marketing
District, and as set forth in the attached SLOCTMD Management Plan (Exhibit A).
3. The City Clerk is hereby directed to transmit a certified copy of this Resolution to the
Clerk of the SLO County Board of Supervisors.
4. This Resolution is effective upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 91h day of December 2014 on the following vote:
AYES: Headding, Johnson, Makowetski, Smukler
NOES: None
ABSENT: None
RECUSED: Irons
J E L. IRONS, May r
ATTEST:
yVA��
JAW4IE BOUCHER, City Clerk
Page 210 of 218
.r%
M
El
RESOLUTION NO.32-15
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
RESCINDING RESOLUTION NO. 13-10, AND ESTABLISHING
THE RISK MANAGEMENT INTERNALSERVICE FUND
AND COMMITTED FUND BALANCE
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on February 22, 2010, the City Council of the City of Morro Bay adopted
Resolution No. 13-10, which established the parameters for the Risk Management Internal Service
Fund (Risk Management ISF); and
WHEREAS, with this Resolution, the City Council of the City of Morro Bay is rescinding
Resolution No. 13-10 in its entirety; and
WHEREAS, the City continues to purchase insurance from the California Joint Powers
Insurance Authority (CJPIA), and pays for this insurance through the Risk Management ISF by
collecting money, on a monthly basis, from the benefitting City departments/funds, to reimburse for
co the cost of the insurance; and
WHEREAS, the cash requirements for this Fund have been reassessed, and estimated at
$100,000 as sufficient to pay for any uncovered lawsuits, such as land -use, personnel issues, etc.;
and
WHEREAS, the CJPIA does not require the City to maintain a Risk Management Fund; and
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Morro Bay,
California, as follows:
RISK MANAGEMENT INTERNAL SERVICE FUND MWSF)
1. The Risk Management Fund is established as an Internal Service Fund, whose purpose is to
manage the insurance purchased from the CJPIA, and to pay for any claims not covered by
CJPIA.
2. The RMISF, while not required by CJPIA, has been determined, by the City, to be necessary
to account for the covered and uncovered insurance expenses.
3. The RMISF's fund balance has been designated as follows:
a. Committed — $100,000 in reserve, asset by the City Council;
b. Assigned —amounts required, within 30 days after the beginning of anew fiscal year,
to pay insurance bills; and
Page 211 of 218
Resolution No. 32-15
Page 2
c. Unassigned— any remaining balance available for spending, based on City Council -
directed strategic investments in the areas of risk reduction (Le., American with
Disabilities Act renovations), economic development, City planning, City operations.
4. The City Council is committed to ADA compliance, based on the nexus with Risk
Management, and will endeavor to spend a measurable portion of one-time monies on ADA
projects.
5. Risk management cash needs will be annually evaluated through the budget, and the RMISF
cash balance adjusted, as necessary.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 91h day of June, 2015, by the following vote:
AYES:
NOES:
ABSENT:
JAMIE L. IRONS, Mayor
ATTEST:
DANA SWANSON, City Clerk
Page 212 of 218
F1
RESOLUTION NO.33-15
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY,
CALIFORNIA, RESCINDING SECTION 5 OF RESOLUTION NO.55-93,
RESCINDING RESOLUTIONS NO.27-10 AND 42-11 IN THEIR ENTIRETY, AND
ESTABLISHING THE GENERAL FUND EMERGENCY RESERVE FUND POLICY
AND ACCEPTING MANAGEMENT PARTNERS' FINANCIAL FORECAST
ASSUMPTIONS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on June 28, 1993, the Morro Bay City Council adopted Resolution No. 55-93,
which adopted the Fiscal Year 1993-94 Budget and Appropriations Limit; and
WHEREAS, Section 5 of Resolution No. 55-93 states "A reserve for emergencies of
$800, 000 shall be established out of the City's General Fund. This amount will be reported in the
General Funds Equity section of the balance sheet. The City Administrator must receive prior
approval from the City Council for any use of these reserve funds;" and
WHEREAS, with this Resolution, the Morro Bay City Council is rescinding Section 5 of
Resolution No. 55-93; and
WHEREAS, on May 24, 2010, the Morro Bay City Council adopted Resolution No. 27-10,
which established the parameters for use of the General Fund (Accumulation) Reserve; and
WHEREAS, with this Resolution, the Morro Bay City Council is rescinding Resolution No.
27-10 in its entirety; and
WHEREAS, on June 28, 2011, the Morro Bay City Council adopted Resolution No. 42-11,
which amended the parameters of Resolution No. 27-10; and
WHEREAS, with this Resolution, the Morro Bay City Council is rescinding Resolution No.
42-11 in its entirety; and
WHEREAS, the City Council desires to establish the GENERAL FUND EMERGENCY
RESERVE FUND POLICY to identify the parameters and use of this Fund.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay,
California, as follows:
A. The General Fund Emergency Reserve ("GFER") Fund is named and established, and the
GFER Fund Policy is described, below, sets the parameters for and use of the GFER Fund as
follows:
Page 213 of 218
Resolution No. 33-15
Page 2
a. The GFER Fund target balance is set at 27.5%.
b. Annually, the GFER Fund balance is calculated by using the average of three -years'
actual General Fund operating revenues (for example, 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 General Fund, as compared to the target
calculated balance, amounts, greater than the 27.5% target balance, will be deemed
available for use, as determined by the City Council, during the annual budget
adoption process or budget amendments as may be approved by the Council.
d. Each use of GFER Fund must be approved by the City Council.
B. Based on the Management Partners' Financial Forecast, a copy of which is attached to this
Resolution, the following assertions are accepted:
1. The Management Partner's Financial Forecast predicts a moderate recession in
2017.
2. The City's Ca1PERS 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, then expenditures must be adjusted to meet
these targets.
7. Those assumptions will be reviewed annually in May for re -adoption in June, based
on the current fiscal environment.
Page 214of218
Resolution No. 33-15
Page 3
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular
meeting thereof held on the 0 day of June, 2015, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
DANA SWANSON, City Clerk
U
JAMIE L. IRONS, Mayor
Page 215 of 218
RESOLUTION NO.34-15
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
ESTABLISHING A STRATEGIC INVESTMENT SPENDING PLAN
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on May 20, 2015 at the Budget Workshop, the City Council of the City of
Morro Bay was presented with the Proposed Budget for the Fiscal Year 2015/16; and
WHEREAS, in the Budget Workshop presentation, the City Council was shown a Strategic
Investment Spending Plan, the intent of which is for prioritized spending of one-time monies, the
details of which are attached to this Resolution; and
WHEREAS, the City Council desires to establish the practice of spending one-time and
surplus monies on strategically -identified projects in the areas of risk reduction, economic
development, City planning and City operations; and
WHEREAS, this Resolution ratifies and establishes the City's Strategic Investment
Spending Plan for future use of one-time and surplus monies; and 4
WHEREAS, for the Fiscal Year 2015/16, surplus funds have been identified in the Risk
Management Internal Service Fund, which are not committed or assigned for insurance purposes, per
the definitions contained in Resolution No. 32-15; and
WHEREAS, these surplus funds are targeted for the elements of the Strategic Investment
Spending Plan, attached to this Resolution:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California:
1. The Strategic Investment Spending Plan (Plan), a copy of which is attached to this
Resolution, is adopted; and
2. The Plan is the City's official priority list for spending one-time and surplus funds;
and
3. The Plan will, at minimum, be presented to the City Council, for revision, on an
annual basis; and
4. The Fiscal Year 2015/16 priority list, contained in this Resolution, is authorized and
shall remain in effect unless modified or rescinded by the City Council.
Page 216 of 218
•
Resolution No. 34-15
Page 2
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular
meeting thereof held on the 23rd day of June, 2015, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
DANA SWANSON, City Clerk
JAMIE L. IRONS, Mayor
Page 217 of 218
Resolution No. 34-15
Page 3
Strategic Investment Spending Plan
(With Approximate Dollar Amount)
1. Americans with Disabilities Act (ADA) compliance - $100,000
2. Land Use Plans for the General Plan and Local Coastal Plan - $300,000
3. Morro Bay Economic Development Strategic Plan - $75,000
4. Information Technology Program - $100,000
5. Web -Based Planning, Permitting and Licensing Software - $85,000
6. High -Speed Fiber Investment $150,000
7. Additional Projects approved by City Council
Page 218 of 218
E
Cover photo taken by Holly Ford, and
downloaded from the KSBY website
City of Morro Bay
595 Harbor Street
Morro Bay, CA 93442
(805) 772-6201
www.morro-bay.ca.us