Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget

FY 2020/21 Proposed Mid-Cycle Budget and

Estimated COVID-19 Financial Impacts

City of Goleta
City Council Meeting
June 16, 2020
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 2

Public Hearing Format

 Staff Presentation

 Questions from Councilmembers

 Public Comments

 City Council Deliberation and Decision Making

 Recommended Actions
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 3

Overview - Recap
 COVID-19 and the stay at home order caused a massive decrease in spending on certain goods and
services in Goleta

 National and state response combined with uncertainty of how long the presence of the virus will
disrupt the economy have made forecasting revenues challenging

 The revised FY 20/21 revenue forecast was developed after numerous state and county updates
detailing stay at home order related impacts, comparisons to previous economic downturns, studying
reports and projections of industry specific analysts and considering past cyclical trends of the City’s
revenue receipts

 These are extraordinary times with no assured models from the past staff can presently use to predict
the future. There is a significant amount of uncertainty in our forecast, which calls for frequent budget
adjustments and ongoing review
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 4

Overview - Recap
 The initial FY 20/21 budgetary gap was $5.9 million
 Budget balancing strategies utilized, including use of unassigned fund balance

 Three scenarios were developed to guide staff’s recommendations:

 Scenario 1 – Optimistic Case – Short Recession, rapid recovery by end of December 2020
 Scenario 2 – Recommended Case – Recession through FY 20/21
 Scenario 3 – Possible Case – Deep Recession through mid FY 21/22

 A three-tiered approach was created to address potential revenue shortfalls, with triggers identified to
indicate if and when to implement the next tier
 The budget maintains current service levels, includes deferrals of certain expenditures and projects,
and will be frequently reviewed and updated over the coming year
 The budget is an initial bridge to financial recovery, not a long-term solution if fiscal conditions persist
past June 2021
 Actual impacts in FY 19/20 for the last quarter will be known by late August/September, will affect
fund balance
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 5

General Fund Revenues

General Fund FY 2020/21 Revenues and Revised Estimates

FY 2018/19 FY 2019/20 FY 2020/21 FY 2020/21 $ Change to % Change

Revenues by Category Actuals Revised Original Revised Budget to Budget
Property Tax $ 7,431,595 $ 7,354,700 $ 7,587,300 $ 7,625,500 $ 38,200 0.5%
Sales Tax $ 6,994,204 $ 5,892,900 $ 6,907,500 $ 5,927,500 $ (980,000) -14.2%
Transient Occupancy Tax $ 11,564,512 $ 8,498,000 $ 10,471,300 $ 5,530,000 $ (4,941,300) -47.2%
Cannabis Business Tax $ - $ 41,000 $ - $ 81,600 $ 81,600 -
Franchise Fees $ 1,337,267 $ 1,330,000 $ 1,292,438 $ 1,333,400 $ 40,962 3.2%
Licenses & Service Charges $ 1,466,477 $ 1,765,900 $ 1,415,600 $ 1,497,400 $ 81,800 5.8%
Fines & Penalties $ 211,003 $ 154,000 $ 182,900 $ 148,000 $ (34,900) -19.1%
Interest and Rent Income $ 460,481 $ 426,100 $ 440,100 $ 282,000 $ (158,100) -35.9%
Reimbursements $ 393,331 $ 466,650 $ 405,600 $ 381,100 $ (24,500) -6.0%
Other Revenues $ 142,279 $ 84,300 $ 67,000 $ 67,000 $ - 0.0%
Transfers In from Other Funds $ 23,182 $ 29,980 $ 31,000 $ 37,200 $ 6,200 20.0%
Total $ 30,024,330 $ 26,043,530 $ 28,800,738 $ 22,910,700 $ (5,890,038) -20.5%
FY 18/19 Baseline $ Change $ (3,980,800) $ (1,223,592) $ (7,113,630)
FY 18/19 Baseline % Change -13.26% -4.08% -23.69%
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 6

General Fund Revenues

Total General Fund Revenues

Future Projection
$33.0 25.0%
MILLIONS

20.0%
$31.0 $30.0 $30.3 20.0%
$29.7
$29.2
$28.8
$29.0
$27.5
15.0%
$27.5
$27.0 9.1% $26.0
10.0%
$25.0 5.8%
4.7%
5.0%
$22.9 1.6% 1.6% 2.1%
$23.0
0.0%
$21.0

-5.0%
$19.0

$17.0 -12.0% -10.0%

-13.3%

$15.0 -15.0%
17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26

Total General Fund Revenue Change from Prior Year

Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 7

General Fund Expenditures

 Various cost containment strategies were utilized to reduce expenditures

 Some departments incur a greater or lower level of expenditures in first half versus second half due to
timing and seasonality of their operations or programs. The variability is consistent with prior years

 To align expenditures with reduced revenues, the City Manager directed staff to revaluate expenditure
budgets with a focus on essential services, projects and programs only, and identify unencumbered
funds. This resulted in total General Fund expenditure reductions of $2.3 million or -8.1%

 $806,444 is related to salary savings of eleven vacant positions and $1.5 million related to various
budget savings and current cost cutting and deferral measures
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 8

General Fund Expenditures

General Fund FY 2020/21 Expenditures and Revised Estimate
2020/21
FY 18/19 FY 2019/20 FY 2020/21 Revised $ Change to % Change
Expenditures by Department Actuals Revised Original Estimate Budget to Budget
General Government $ 5,718,918 $ 5,666,761 $ 6,177,639 $ 5,966,210 $ (211,429) -3.4%
Library $ 378,791 $ 386,400 $ 466,060 $ 374,340 $ (91,720) -19.7%
Finance $ 803,863 $ 1,000,207 $ 1,030,820 $ 953,450 $ (77,370) -7.5%
Planning and Environmental Re $ 3,234,159 $ 4,813,162 $ 3,247,480 $ 3,184,350 $ (63,130) -1.9%
Public Works $ 4,102,933 $ 5,926,836 $ 5,986,764 $ 4,806,800 $ (1,179,964) -19.7%
Neighborhood Services $ 1,356,625 $ 2,160,889 $ 2,305,270 $ 2,157,900 $ (147,370) -6.4%
Public Safety $ 7,676,138 $ 7,452,453 $ 7,894,673 $ 7,762,900 $ (131,773) -1.7%
Non-Departmental $ 1,332,349 $ 850,300 $ 851,000 $ 851,000 $ - 0.0%
Capital Improvement Projects $ 830,931 $ 2,269,441 $ 400,000 $ - $ (400,000) -100.0%
Total $ 25,434,707 $ 30,526,449 $ 28,359,706 $ 26,056,950 $ (2,302,756) -8.1%

$806,444 related to salary savings due to 11 vacancies

$1.5 million due to various cost reduction measures and project deferrals
$74k - Travel and Training, $50k GEM, $91k Library shift to Special Revenue Funds, $80k GF CIP Admin Support, $730k Pavement,
$131k Sheriffs contract , $400k CIP
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 9

General Fund Expenditures

FY 2020/21 FY 2020/21 $ %
Original Proposed Chg from Chg from
Budget Budget Original Original
General Government
City Council 426,600 428,100 1,500 0.4%
City Manager 1,671,100 1,605,200 (65,900) -3.9%
City Clerk 598,300 602,600 4,300 0.7%
City Attorney 930,940 886,100 (44,840) -4.8%
Community Relations 315,300 292,500 (22,800) -7.2%
Support Services 2,235,399 2,151,710 (83,689) -3.7%
Total 6,177,639 5,966,210 (211,429) -3.4%
Library Services -
Library Services 466,060 374,340 (91,720) -19.7%
Total 466,060 374,340 (91,720) -19.7%
Finance -
Administration 1,030,820 953,450 (77,370) -7.5%
Total 1,030,820 953,450 (77,370) -7.5%
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 10

General Fund Expenditures

FY 2020/21 FY 2020/21 $ %
Original Proposed Chg from Chg from
Budget Budget Original Original
Planning & Environmental Review -
Current Planning 1,579,980 1,271,250 (308,730) -19.5%
Building & Safety 510,200 561,500 51,300 10.1%
Advanced Planning 893,500 737,900 (155,600) -17.4%
Planning Commission 65,700 24,800 (40,900) -62.3%
Sustainability Program 198,100 202,700 4,600 2.3%
Housing - 30,000 30,000 -
Administration - 356,200 356,200 -
Total 3,247,480 3,184,350 (63,130) -1.9%
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 11

General Fund Expenditures

FY 2020/21 FY 2020/21 $ %
Original Proposed Chg from Chg from
Budget Budget Original Original
Public Works -
Administration 384,404 290,200 (94,204) -24.5%
Engineering Services 1,372,460 1,029,150 (343,310) -25.0%
Facility Maintenance 198,100 149,300 (48,800) -24.6%
Parks & Open Space Maintenanc 1,270,192 1,480,200 210,008 16.5%
Capital Improvement Program 1,092,900 885,700 (207,200) -19.0%
Street Maintenance 1,668,708 972,250 (696,458) -41.7%
Total 5,986,764 4,806,800 (1,179,964) -19.7%
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 12

General Fund Expenditures

FY 2020/21 FY 2020/21 $ %
Original Proposed Chg from Chg from
Budget Budget Original Original
Neighborhood Services -
Neighborhood Services 1,342,400 1,286,700 (55,700) -4.1%
Economic Development 407,070 324,500 (82,570) -20.3%
Parks & Recreation 555,800 546,700 (9,100) -1.6%
Total 2,305,270 2,157,900 (147,370) -6.4%
Public Safety -
Police 7,894,673 7,762,900 (131,773) -1.7%
Total 7,894,673 7,762,900 (131,773) -1.7%
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 13

General Fund Expenditures

General Fund Expenditures
$35.0
Millions

Future Projections

$30.0 8%
10%

$25.0 4%

59%
59%
$20.0 60%
61% 62%
63%
65%
65%
$15.0

$10.0

40% 41% 41%

$5.0 31% 37% 38%
26% 31%

$-
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25

Salaries and Benefits Operating and Maintenance Capital

Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 14

Cost Containment Plan Current strategies implemented since Q3 FY 19/20

and recommended to continue through FY 20/21

 Stricter Expenditure Controls

 Non-essential purchases put on hold
 Examples: pool vehicles, special studies and projects not considered urgent, travel related expenses, certain upgrades to office
equipment, non-urgent maintenance, non-urgent advertising, recruitment
 50% reduction applied citywide for conferences, meetings and travel, with some departments reducing the full amount, resulting in savings
of approximately $73,800 (overall 60% reduction)
 Costs tracked for possible 75% FEMA reimbursement as it relates to response to COVID-19 (e.g., increase
janitorial services, special software for electronic document routing and personal protective equipment).

 Recognizing Operating Budget Savings

 Special projects deferred (non-urgent), including reduction in use of consultants and temporary staff.
 Significant savings: Purchasing City Hall building, Sheriff’s contract cost offsets due to new DSS model savings,
legal budget savings, reduced on-call services, travel and training budgets, printing costs, office supplies.
 Deferred savings: Pool vehicle purchases, various professional services budgeted but no longer needed at this
time, GEM funding not needed for FY 20/21, shifting a portion of General Fund expenditures to be supported by
Library Special Fund Revenues, and General Fund portion budgeted for pavement rehabilitation, which will be
supported by special revenue funds dedicated for street and transportation projects.
 Approximately $1.5 million in overall savings
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 15

Cost Containment Plan

 Hiring Freeze and Vacancy Savings
 89.43 FTE for FY 20/21
 11 vacant FTEs in 20/21
Staff Vacancies - FY 20/21 as of 6/1/2020
Department Program Title
General Government City Manager's Office Management Analyst
General Government City Manager's Office Management Analyst (IT) Savings of approximately $806,433 in FY 20/21.
Finance Finance Accounting Specialist
Planning Current Planning Associate Planner Revised five-year forecast phases back in
Planning Sustainability Management Assistant positions over two year period, starting in FY 21/22.
Planning Housing Senior Housing Analyst
Public Works Administration Sr. Office Specialist
Public Works Engineering Traffic Engineer
Public Works Engineering Principal Civil Engineer
Public Works Facilities Facilities Maintenance Technician
Public Works CIP Admin Assistant Engineer
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 16

Cost Containment Plan

 Capital Improvement Program Project Deferrals
 $400,000 of the General Fund was originally scheduled for programming in FY 20/21
 This original amount was set aside for Miscellaneous Facilities Improvements and intended to support an elevator
installation as part of the City Hall Purchase and Improvements Project. Additionally, new General Fund
appropriations were being considered including funding for San Jose Creek Improvements and Fish Passage
Emergency Repair, LED Street Lighting Project. Funding for San Jose Creek currently under review.
 Projects to be supported by other available special funds and re-examined at a later time.

 Review Reserve Category Levels

 Multiple reserves categories, including Public Facility Reserves and Capital Equipment Reserves.
 Public Facility Reserves used for acquisition opportunities. Amount is currently $830,108. - Staff recommends
retaining this set aside to assist with Fire Station No. 10 completion if needed.
 Capital Equipment Reserve is set aside to replace aging equipment, specifically City vehicles. Amount is currently
$597,869 and based on depreciation schedule. Staff recommends to expand uses to include computers and
other large essential equipment that may arise.

 Establishing Section 115 Trust for Pensions and OPEB

 Reserves set aside for Pension UAL - $170,000 and OPEB $333,500
 Section 115 Trust to be utilized as a budget stabilization tool and reduce liabilities
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 17

Five-Year Forecast
Revenue and Expenditures by FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Category Revised Projected Projected Projected Projected
Property Tax $ 7,625,500 $ 7,625,500 $ 7,772,400 $ 7,922,100 $ 8,074,900
Sales Tax $ 5,927,500 $ 6,273,100 $ 6,440,300 $ 6,613,700 $ 6,793,600
Transient Occupancy Tax $ 5,530,000 $ 9,744,000 $ 10,686,000 $ 10,793,000 $ 10,901,000
Cannabis Business Tax $ 81,600 $ 82,410 $ 83,230 $ 84,060 $ 84,900
Franchise Fees $ 1,333,400 $ 1,338,600 $ 1,343,800 $ 1,349,100 $ 1,354,400
Licenses & Service Charges $ 1,497,400 $ 1,498,140 $ 1,513,110 $ 1,528,190 $ 1,543,430
Fines & Penalties $ 148,000 $ 148,000 $ 149,480 $ 150,960 $ 152,450
Interest and Rent Income $ 282,000 $ 288,300 $ 288,490 $ 288,680 $ 288,870
Reimbursements $ 381,100 $ 385,670 $ 388,490 $ 390,410 $ 392,350
Other Revenues $ 67,000 $ 67,000 $ 67,000 $ 67,000 $ 67,000
Transfers In from Other Funds $ 37,200 $ 37,200 $ 37,200 $ 37,200 $ 37,200
Total Revenues $ 22,910,700 $ 27,487,920 $ 28,769,500 $ 29,224,400 $ 29,690,100

Expenditures by Department
General Government $ 5,966,210 $ 6,104,641 $ 6,420,788 $ 6,613,281 $ 6,812,191
Library $ 374,340 $ 378,193 $ 385,982 $ 393,935 $ 402,056
Finance $ 953,450 $ 1,025,390 $ 1,118,500 $ 1,160,579 $ 1,204,288
Planning and Environmental Review $ 3,184,350 $ 3,424,522 $ 3,759,175 $ 3,890,363 $ 4,026,415
Public Works $ 4,806,800 $ 5,249,907 $ 5,726,665 $ 5,909,323 $ 6,098,359
Neighborhood Services $ 2,157,900 $ 2,137,110 $ 2,216,737 $ 2,282,406 $ 2,350,242
Public Safety $ 7,762,900 $ 7,840,529 $ 7,997,340 $ 8,157,286 $ 8,320,432
Non-Departmental $ 851,000 $ 859,730 $ 877,373 $ 895,388 $ 913,781
Capital Improvement Projects $ - $ - $ - $ - $ -
Total Expenditures $ 26,056,950 $ 27,020,022 $ 28,502,560 $ 29,302,561 $ 30,127,765

Net Revenue over Expenditures

Addition to or (use) of Fund Balance $ (3,146,250) $ 467,899 $ 266,940 $ (78,161) $ (437,665)
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 18

FY 20/21 Reserves and Forecast

Scenario 2 - Recession through FY 20/21
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Summary of Five Year Forecast
Revised Projected Projected Projected Projected
Beginning Fund Balance $ 19,609,178 $ 16,462,928 $ 16,930,826 $ 17,197,766 $ 17,119,604

Total Revenues $ 22,910,700 $ 27,487,920 $ 28,769,500 $ 29,224,400 $ 29,690,100

Total Expenditures $ 26,056,950 $ 27,020,022 $ 28,502,560 $ 29,302,561 $ 30,127,765
Net Revenue over Expenditures

A $ (3,146,250) $ 467,899 $ 266,940 $ (78,161) $ (437,665)

Fund Balance Categories

Prepaids and Deposits $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
Public Facilities $ 830,108 $ 830,108 $ 830,108 $ 830,108 $ 830,108
Capital Equipment $ 594,869 $ 594,869 $ 594,869 $ 594,869 $ 594,869
Compensated Leave $ 237,123 $ 237,123 $ 237,123 $ 237,123 $ 237,123
Risk Management $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000
Contingency Reserves $ 7,963,101 $ 8,279,643 $ 8,766,311 $ 9,027,687 $ 9,297,324
Litigation Defense Fund $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000
Sustainability $ 292,500 $ 292,500 $ 292,500 $ 292,500 $ 292,500
OPEB UAL $ 333,500 $ 333,500 $ 333,500 $ 333,500 $ 333,500
CalPERS UAL $ 170,000 $ 170,000 $ 170,000 $ 170,000 $ 170,000
CIP Project Funding $ - $ - $ - $ - $ -
Encumbrances $ - $ - $ - $ - $ -
Unassigned Fund Balance $ 5,531,726 $ 5,683,083 $ 5,463,355 $ 5,123,818 $ 4,416,516
Ending Fund Balance $ 16,462,928 $ 16,930,826 $ 17,197,766 $ 17,119,604 $ 16,681,940
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 19

Five-Year Forecast
General Fund Five-Year Forecast
$35.0
Net operating revenues = Addition to or (use) of unassigned fund balance
Millions

$266,940 $(78,161) $(437,665)

$30.0 $467,899
$(3,146,250)

$25.0

$20.0

$15.0

$10.0

$5.0

$-
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Revised Projected Projected Projected Projected
Total Revenues Total Expenditures Unassigned Fund Balance
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 20

Major Projects – PER Department

Active Not Active/Deferred
Current Planning
Update SB 743 CEQA traffic impact thresholds of significance (nearly complete)

Historic and Cultural Preservation Ordinance

Advance Planning
Title 17 follow-ups, maintenance and updates Old Town Visioning Process
Creeks and Watershed Master Plan and CE 2.2 General Plan Amendment Battery Storage Comprehensive Approach

Objective Design Guidelines (LEAP Grant) Revisit General Plan Amendment (GPA) Initiation Process
Local Coastal Program certification Climate Action Plan Update
2022-2030 RHNA Plan and Housing Element Update (REAP Grant)

In Lieu Fee Study (SB 2 Grant)

Sustainability
Strategic Energy/100% Renewable Electricity Plan Implementation Reach Code
Energy Assurance Plan (OES Grant)
Community Choice Aggregation Implementation
Formation & Participation in Regional Climate Collaborative
To be determined based on workload/staff capacity
City Facilities – Clean Energy Infrastructure
Shared Micro-Mobility Plan (Bike Share)
Regulations for Polystyrene Foam & Single Use Plastic Reduction
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 21

Major Projects – PER Department

Active Not Active/Deferred
Affordable Housing Implementation
Existing Affordable Units Prepare a Housing Trust Fund and Comprehensive Affordable Housing Finance
Plan (CAHFP)
Monitor inventory of existing affordable housing Tenant Protections Ordinance
Monitoring and renegotiate existing housing covenants to preserve affordable
housing inventory
Mobile Home Park Preservation: assist park tenants with purchase of units,
conduct income surveys and review annual rental reports

New Affordable Units

Assure new affordable units meet City requirements through covenant and deed
restriction
Contract and oversee Santa Barbara County Housing Authority services

Housing in-lieu funds management

Managing and report on housing in-lieu funds and incentive programs

Fair Housing Enforcement & Tenant Protections

Enforce and provide information on Fair Housing Act and tenant rights under State
and federal anti-discrimination laws

Mediation of landlord-tenant rental housing disputes with the assistance of City of

Santa Barbara contract services
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 22

Capital Improvement Program (CIP)

Work Program Legend:
Work in Fiscal Year/Work Program Year Projects moving forward in FY 20/21
Project Completed Prior 20/21 21/22 22/23 23/24 24/25 Funding Other Projects delayed in FY 20/21
Number Project Name Project Phase Years 1 2 3 4 5 General Fund Funding Notes
Active Public Works Projects for FY 20/21
1 9001 Hollister Avenue Complete Street Corridor Plan Conceptual Design (Study) No Yes Moving forward. Present Study Summer of 2020
2 9002 Ekwill Street & Fowler Road Extensions Project Design No Yes Moving forward. Grant Deadline(s)
3 9006 San Jose Creek Bike Path - Southern Extent & Se Environmental Review No Yes Moving forward. Grant Deadline(s)
4 9007 San Jose Creek Bike Path - Middle Extent - Segm Design No Yes Moving forward. Grant Deadline(s)
5 9009A San Jose Creek Emergency Channel Repair Design Yes Yes Moving forward. High Priortity Pending Bid Outcome
6 9031 Old Town Sidwalk Improvement Project Construction Yes Yes Moving forward. General Fund already encumbered
7 9033 Hollister Avenue Bridge Project Design No Yes Moving forward. Grant Deadline(s)
8 9056 LED Street Lighting Project Design Yes No Moving forward. Reduced General Fund Amount
9 9058 RRFB at Chapel and PHB at Kingston Construction Yes Yes Moving forward. GF already encumbered & Grant Deadline
10 9062 Storke/Hollister Transit, Bike/Ped, and Median I Conceptual Design No Yes Moving forward. Grant Deadline(s)
11 9070 Fairview Avenue/US 101 Intersection Sidewalk I Construction No Yes Moving forward. Grant Deadline(s)
12 9087 Crosswalk PHB on Calle Real near Encina Lane Design No Yes Moving forward. Grant Deadline(s)
13 9088 RRFB Improvements at School Crosswalks Design No Yes Moving forward. Grant Deadline(s)
14 9089 Goleta Traffic Safety Study Conceptual Design (Study) No Yes Moving forward. Grant Deadline(s)
15 9099 Crosswalk at Calle Real/Fairview Center - PHB Design No Yes Moving forward. Grant Deadline(s)
16 9102 Storke Road Corridor Study Conceptual Design (Study) No Yes May experience delay, pending staff workload
17 9110 Hollister Class I Bike Path Lighting Design No Yes Moving forward. Grant Deadline(s)
18 9112 Ellwood Butterfly Habitat Management Plan Design No Yes Moving forward. Grant Deadline(s)
19 5800-1 Annual Pavement Rehabilitation Project Design No Yes Moving forward. Eliminated General Fund - Reduced Project Scope
20 5800-2 Miscellaneous Concrete Repair Project Construction No Yes Moving forward. Eliminated General Fund - Reduced Project Scope
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 23

Capital Improvement Program (CIP)

Work Program Legend:
Work in Fiscal Year/Work Program Year Projects moving forward in FY 20/21
Project Completed Prior 20/21 21/22 22/23 23/24 24/25 Funding Other Projects delayed in FY 20/21
Number Project Name Project Phase Years 1 2 3 4 5 General Fund Funding Notes

Public Works Projects Not Actively Being Worked on in FY 20/21

21 9027 Goleta US 101 Overcrossing Conceptual Design Unknown Yes Delayed
22 9042 Storke Road Widening - Phelps to City Limit Conceptual Design Unknown Yes Delayed
23 9044 Hollister Widening West of Storke Conceptual Design None Unknown Yes Delayed
24 9053 Cathedral Oaks Crib Wall Interim Repair Project Conceptual Design Yes No Delayed. High Priority as Funding becomes available
25 9061 Catheral Oaks Class I Multi-use Path Not Started None Unknown Unknown Delayed
26 9064 Reclaimed Water Service to Evergreen Park Not Started None Unknown Unknown Delayed
27 9065 Reclaimed Water Service to Bella Vista Park Not Started None Unknown Unknown Delayed
28 9067 Goleta Community Center Improvements Conceptual Design Yes Yes Delayed. High Priority as Funding becomes available
29 9069 Miscellaneous Facilities Improvements Not Started None Yes No Delayed
30 9078 Rancho La Patera Improvements Conceptual Design Yes No Delayed
31 9081 Covington Drainage System Improvements Not Started None Yes No Delayed
32 9083 Traffic Signal Upgrades Conceptual Design Yes Unknown Delayed. High Priority as Funding becomes available
33 9085 Goleta Storm Drain Master Plan Not Started None Unknown Yes Delayed
34 9086 Vision Zero Plan Not Started None Unknown Unknown Delayed
35 9096 Orange Avenue Parking Lot Not Started None Unknown Unknown Delayed
36 9097 Fairview Corridor Study Not Started None Unknown Unknown Delayed
37 9100 Hollister/Fairview Roundabout Not Started None Unknown Unknown Delayed
38 9103 Citywide School Zones Signage and Striping Not Started None Unknown Unknown Delayed
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 24

Capital Improvement Program (CIP)

Work Program Legend:

Work in Fiscal Year/Work Program Year Projects moving forward in FY 20/21
Project Completed Prior 20/21 21/22 22/23 23/24 24/25 Funding Other Projects delayed in FY 20/21
Number Project Name Project Phase Years 1 2 3 4 5 General Fund Funding Notes
Public Works Projects Not Actively Being Worked on in FY 20/21 (Continued)
39 9104 Citywide Traffic Signal Evaluation Not Started None Yes Unknown Delayed
40 9105 Ellwood Beach Drive Drainage Replacement Not Started None Unknown Unknown Delayed
41 9106 Phelps Ditch Channel Trash Control Structure Not Started None Unknown Unknown Delayed
42 9107 Old Town south Fairview Trash Capture Devices Not Started None Unknown Unknown Delayed
43 9109 Ward Drive Sidewalk Infill Not Started None Unknown Unknown Delayed
44 TBD Ellwood Trails Project Design Unknown Unknown Delayed
45 TBD Fairview Ave and Stow Canyon Rd Intersection I Not Started None Unknown Unknown Delayed. High Priority as Funding becomes available
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 25

Capital Improvement Program (CIP)

Work Program Legend:
Work in Fiscal Year/Work Program Year Projects moving forward in FY 20/21
Project Completed Prior 20/21 21/22 22/23 23/24 24/25 Funding Other Projects delayed in FY 20/21
Number Project Name Project Phase Years 1 2 3 4 5 General Fund Funding Notes

Active Neighborhood Services and Public Safety Projects for FY 20/21

46 9025 Fire Station 10 Design Unknown Yes Project moving forward, currently at CA Coastal Commission awaiting hearing
47 9063 Evergreen Park - Public Restroom Design No Yes Project moving forward
48 9066 Miscellaneous Park Improvements Design No Yes Project moving forward
49 9074 Stow Grove Multi-Purpose Field Design No Yes Project moving forward
50 9079 Goleta Train Depot and S. La Patera Imp. Design Yes Yes Project moving forward, prior General Fund only
51 9084 Communty Garden Design No Yes Project moving forward
52 9108 Winchester II Park Improvements Design Unknown Yes Project moving forward
53 9111 JDW Neighborhood Park Phase 2-Splash Pad Design No Yes Project moving forward

Neighborhood Services and Public Safety Projects Not Actively Being Worked on in FY 20/21
54 9075 Evergreen Park Multi-Purpose Field Not Started None Unknown Unknown Delayed
55 9076 Public Swimming Pool Not Started None Unknown Unknown Delayed
56 9077 Recreation Center/Gymnasium Not Started None Unknown Unknown Delayed
57 9093 San Miguel Park Improvements Not Started None Unknown Unknown Delayed. May move forward by end of next fiscal year.
58 9094 Santa Barbara Shores Park Improvements Not Started None Unknown Unknown Delayed
59 9101 City Hall Purchase and Improvements - Elevator Construction Yes No Delayed
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 26
9025 FIRE STATION SITE NO. 10
Proposed
FY 2018/19 FY 2018/19
FY 2019/20 BUDGET Prior Year Estimated Projected
Actuals Actuals Carryovers FY 2019/20 FY 2020/21 FY 2021/22 TOTAL
Account Account Name Project Phases
704 Land Acquisition/ROW 1,251,675 - - 1,251,675
706 Preliminary Eng/Environ 534,983 94,150 1,238,572 1,867,705
705 Construction/CM - - 1,863,388 3,450,000 3,166,685 8,480,073
TOTAL BY PHASE 1,786,658 94,150 3,101,959 - 3,450,000 3,166,685 11,599,452
Fund Fund Name Sources of Funds
101 General 1,251,675 - - 1,251,675
222 Public Administration Development Fees 92,637 - - 808,718 901,355 Revised estimates
229 Fire Development Fees 35,242 10,589 1,851,624 1,532,791 - 3,430,246 are still being
231 Developer Agreement 270,000 270,000
232 County Fire DIF 407,103 83,561 980,336 1,471,000 validated.
999 TBD - Other Sources 1,108,491 3,166,685 4,275,176
TOTAL BY FUND 1,786,658 94,150 3,101,959 - 3,450,000 3,166,685 11,599,452
Proposed Back to Council with
FY 2019/20 FY 2019/20 FY 2020/21 a separate discussion
FY 2020/21 REVISED BUDGET Prior Year Estimated Projected Original FY 2020/21
Actuals Actuals Carryovers Adopted REVISED FY 2021/22 TOTAL
on the project once
Account Account Name Project Phases cost estimates are
57050 Land Acquisition/ROW 1,251,675 - - - - - 1,251,675
57070 Preliminary Eng/Environ 641,576 44,633 1,193,893 - 1,982,773 - 3,862,875
confirmed.
57071 Construction/CM - 592 1,862,796 3,450,000 1,532,791 13,547,939 16,944,118
TOTAL BY PHASE 1,893,250 45,225 3,056,689 3,450,000 3,515,564 13,547,939 22,058,668
Fund Fund Name Sources of Funds
101 General 1,251,675 - - - - - 1,251,675
222 Public Administration Development Fees 92,637 - - 808,718 - 608,718 701,355
229 Fire Development Fees 48,275 40,530 1,808,650 1,532,791 1,532,791 - 3,430,246
231 Developer Agreement 270,000 - - - 270,000
232 County Fire DIF 500,663 4,695 978,039 - - 100,000 1,583,397
999 TBD-Other Sources 1,108,491 1,982,773 12,839,221 14,821,994
TOTAL BY FUND 1,893,250 45,225 3,056,689 3,450,000 3,515,564 13,547,939 22,058,668

Total Project Cost Estimate Difference 65,564 10,381,254 10,459,216

Total TBD Funding Difference 874,282 9,672,536 10,546,818
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 27

Other Special Projects

Proposed
TBD Mathilda Park Improvements FY 2020/21 FY 2020/21 FY FY FY FY
Original REVISED 2021/22 2022/23 2023/24 2024/25 TOTAL
Account Account Name Project Phases
57050 Land Acquisition/ROW - - - - - - -
57070 Preliminary Eng/Environ - 50,000 - - - - 50,000
57071 Construction/CM - 150,000 - - - - 150,000
TOTAL BY PHASE - 200,000 - - - - 200,000
Fund Fund Name Sources of Funds
402 Community Development Block Grant - 100,000 - - - - 100,000
995 TBD - Other Grants/Sources - 100,000 - - - - 100,000
TOTAL BY FUND - 200,000 - - - - 200,000

Proposed
TBD Butterfly Habitat Management Plan FY 2020/21 FY 2020/21 FY FY FY FY
Original REVISED 2021/22 2022/23 2023/24 2024/25 TOTAL
Account Account Name Project Phases
57050 Land Acquisition/ROW - - - - - - -
57070 Preliminary Eng/Environ - 250,000 - - - - 250,000
57071 Construction/CM - 750,000 2,024,390 - - - 2,774,390
TOTAL BY PHASE - 1,000,000 2,024,390 - - - 3,024,390
Fund Fund Name Sources of Funds
322 MBHMP - 1,000,000 2,024,390 - - - 3,024,390
995 TBD - Other Grants/Sources - - - - - - -
TOTAL BY FUND - 1,000,000 2,024,390 - - - 3,024,390
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 28

Other Funds The City received revised estimates for Gas Tax and SB 1 in late May.

 Gas Tax (Fund 201)

 State imposed sales taxes and per-gallon excise taxes on gasoline and diesel fuel. Revenues
within Gas Tax are estimated to be 9.5% less than projected, for a total of $760,610.
 SB 1 Road Maintenance & Repair Act (Fund 203)
 Revenues generated from fuel and vehicle registration taxes. SB 1 funds are estimated to be
$563,010, an increase of 4.7% in comparison to original conservative estimates.
 Measure A (Fund 205)
 Revenues are generated from a half-cent sales tax applied countywide. The City receives a
portion of Measure A revenues to be used exclusively for transportation related purposes.
Measure A funds are estimated to be $1,522,340 for FY 20/21.

Estimated Pavement Rebabilitation Budget for FY 20/21

Gas Tax SB 1 Measure A LSTP Total

FY 20/21 $ 740,000 $ 563,000 $ 300,000 $ 116,500 $ 1,719,500
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 29

Key Milestones
Key milestone dates for updating financial projections:

June 2020 October 2020 January 2021 July 2021

• Budget • 1st Key Sales Tax • 2nd Key Sales • Property Tax:
Adoption Update Tax Update Assessed
Valuations for
2021-22

Monthly: Transient Occupancy Tax (TOT)

Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 30

Future Financial Outlook

 Lots of uncertainty, lasting impact over a course of several years
 FY 20/21
 Continued significant impacts to Sales Tax and TOT
 Impacts to transportation related funding
 FY 21/22
 Possible impacts to property taxes (property tax liens January 1, 2020)
 FY 22/23
 CalPERS impacts, likely increase due to employer cost and unfunded accrued liability (UAL) due to negative
performance of investments
 CalPERS may not realize their annual investment goal of 7%
 CalPERS UAL $3.2 million, OPEB UAL $2.2 million.
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 31

Gann Appropriations Limit

 Gann Limit required to be calculated and adopted every fiscal year by resolution
(Attachment 2)
 Gann Limit sets ceiling amount for tax-funded government services
 Annually adjusted based on changes in population, inflation, per capita personal income or
percentage change in the local assessment roll from preceding year for addition of local
nonresidential new construction

 Any significant amount of tax revenue received above the Gann Limit may result in future tax
rebates or tax cuts

 FY 2020/21 Gann Limit is $63,208,132

 5.02% increase from prior year of $60,187,739
 Only $19,531,729 of City revenues subject to limit
 Currently $43,676,403 under the limit
Fiscal Year 2020/21 Proposed Mid-Cycle Operating and CIP Budget 32

Recommendations and Looking Ahead

 Recommendations
 Adopt the revised Operating and Capital Improvement Program Budget for FY 2020/21
 Adopt the City’s Gann Appropriations Limit for FY 2020/21

 Looking Ahead
 September 2020 – Fourth Quarter Financial Review for FY 19/20
 November 2020 – First Quarter Financial Review for FY 20/21
 Other budget related reports may come sooner
 December 2020 – Comprehensive Annual Financial Report (Audited) for FY 19/20