Reso 2019-001 PFA - Laserfiche WebLink

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13 The Storm Water Enterprise Fund is the only enterprise fund projected to face a negative fund balance. In order for the Fund to remain self-sufficient over the long-term, it will require new voter -approved funding or a subsidy from the City General Fund. The Shoreline Fund may have a sufficient fund balance but City staff must monitor this fund closely due to the $7.9 million in debt for operations, of which $6.9 million is owed to the City's General Fund. Deferring principal repayments on the Shoreline Fund's debt to the General Fund, has been a balancing strategy since 2012-13. However, loan principal payments were reinstated in 2017-18 and are reflected in the biennial budget. CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program (CIP) for the City represents the spending plan for infrastructure improvements and other specific large-scale capital purchases including major street and park improvements, building construction, and significant facility maintenance or upgrades. The City's CIP is reported in Section 19. The City's Capital Improvement Program for the Biennial Budget consists of $37.5 million. General Fund CIP commitments total $10.6 million in the proposed two-year budget. The CIP plan and process is significant to our budget and organization. It's important to note that the budget document doesn't include every project on the master list, but is intended to give the reader an idea of the projects currently underway. Over many years, there are easily over $60 million worth of smaller projects that will continue to be built, maintained or upgraded and may not receive the notoriety of a single largescale project, but they are on the list and part of the City's workload. We have adopted a "fix it first" philosophy which means, we want to take care of the smaller maintenance projects before they become larger and more costly. As I have mentioned before, we have a great deal of work ahead. ECONOMIC DEVELOPMENT EFFORTS Economic development is the key element of a sustainable fiscal structure for our community. Continuing to work hard, developing relationships, and supporting business to grow our economy results in increasing the City's fiscal health. It is also what helps create a vibrant business community. In the past decade, the City has seen the creation of about 9,800 jobs, an increase of 30%. Additionally, between Fiscal Years 2016-2018, we were bursting with activity that resulted in an annual construction permit valuation of over $160 million. As mentioned earlier, there are a number of significant projects currently underway or planned in the next few years. In the past year, the City received the American Planning Association Northern California Best Comprehensive Plan — Small Jurisdiction award and recognition for the Bayfair TOD Plan, which will transform and positively impact the southern end of our community with vibrant neighborhoods, shopping, and park space. A 687 -unit downtown housing project will be breaking ground in the next year and is anticipated to be under construction during the next two years. The mixed use Shoreline project will have the anticipated agreements in place later this year. All of these projects