HomeMy WebLinkAboutItem 10 - Advance Item - Strategic Budget DirectionDepartment Name: Finance
Cost Center: 2002
For Agenda of: April 20, 2021
Placement: Business Item
Estimated Time: 120 minutes
FROM: Derek Johnson, City Manager
Prepared By: Brigitte Elke, Finance Director
Natalie Harnett, Principal Budget Analyst
SUBJECT: 2021-23 FINANCIAL PLAN - STRATEGIC BUDGET DIRECTION AND
MAJOR CITY GOAL WORK PROGRAM REVIEW
RECOMMENDATION
1.Review the strategic budget direction report (Attachment A); and
2.Provide feedback and guidance to the City Manager regarding the recommended strategic
budget direction and proposed budget allocations to commence budget adoption on June 1,
2021.
REPORT-IN-BRIEF
The City of San Luis Obispo’s two-year budget approach has a long tradition of involving the
community in its goal setting process, emphasizes long-range financial planning, and supports
effective program management. Despite the Covid-19 pandemic, the City was able to continue
its commitment to community involvement with multiple public City Council sessions, an online
survey, and the first virtual Community Forum on January 19, 2021.
Strategic Budget Direction is a critical next step in the development of the two -year Financial
Plan for all of the City’s major funds (General, Water, Sewer, Parking and Transit Funds) and is
based on the highest priorities determined through the community and the Council Goal-Setting
process. The primary purpose of Strategic Budget Direction is for the Council to provide
direction on:
1.Major City Goal Work Programs.
2.Significant Operating Budget Changes (SOBCs).
3.Capital Improvement Plan (CIP) with projects focused on asset maintenance,
replacement, and new assets.
This critical juncture affords the City Council an early review of key budget allocations and
proposed work programs to accomplish ongoing services as well as Major City Goals established
by the City Council in February 2021. Strategic Budget Direction therefore gives the City
Council an opportunity to provide direction on any refinements to the work programs and
resource allocations to fully achieve the Council’s desired outcomes over the next two -year
Financial Plan period.
Page # 1
Advance Item
This report also provides an updated long-term fiscal forecast and the City’s financial position
under which the Major City Goals, the City’s ongoing community services, and CIP will be
implemented. The forecast incorporates all financial obligations to fully operate the City and
implement the recommended Major City Goal objectives.
Within the report, staff has summarized information and recommendations for Council to review
and provide guidance to the City Manager in the development of the Financial Plan and budget.
The individual sections of the report are intended to provide detailed information on each topic
and cover:
A.Financial Forecasts. The City’s long-term financial outlook including an updated1
five-year forecast.
B.Major City Goals (MCG). Proposed work programs for MCGs including resource
allocations.
C.Ongoing Community Services. Proposed budget allocations.
D.Local Revenue Measure Revenues and Uses. Proposed use of the local revenue
measure that reflects recommendations by the Revenue Enhancement Oversight
Commission.
E.Significant Operating Budget Changes (SOBC). Proposed SOBCs for optimal
service and Major City Goal work program delivery for the General Fund.
F.Capital Improvement Plan (CIP). Five-Year CIP Projects for the General Fund
including projects funded through the Local Revenue Measure.
G.Enterprise Funds. The four Enterprise Funds’ long-term forecasts and work
programs including SOBCs and CIP.
H.Policy Changes. Recommended policy changes or amendments for long-term fiscal
health.
DISCUSSION
The development of the two-year financial plan began in October 2020 and included numerous
informational meetings and presentations with the community and Council to “set the stage” and
lay the budget foundation. Extensive public engagement included a community survey, outreach
to community groups, and a first virtual Community Forum due to the restriction of the Covid-19
health emergency.
These efforts resulted in direction and feedback from the City Council that shaped the strategic
planning and the Major City Goal priorities for the 2021-23 Financial Plan period. Based on the
input and feedback received, the Council met on February 6, 2021, and after thoughtful
deliberation, selected four strategic goals and gave direction to staff to establish appropriate work
programs to achieve the desired outcome. Each of the four goals was to be crafted through the
lens of the defined Vision Statement and each work program endeavored to leverage the
synergies and nexus between each respective goal and the City’s ongoing service delivery.
1 The National, State and Local economy forecasts are being closely monitored and have been adjusted to
incorporate the latest actual economic data and related revenue projections. A 2020 -21 3rd quarter Financial Report
will be presented in May 2021 that compares the latest budget to actual for the current fiscal year.
Page # 2
Fiscal Outlook
The goals were crafted in consideration of the fiscal realities facing the City, its long-term
financial well-being, the services the City provides the community on an ongoing basis, as well
as its recovery from the pandemic. It is important to consider program and operating budget
requests within the context of the realities the City has experienced since late 2019 and early
2020. The worldwide pandemic brought on by Covid-19 required the City to freeze budgets for
the last quarter of fiscal year 2020 and continue with similar budget appropriations in 2020-21 as
the previous fiscal year. It also delayed or removed funding for capital infrastructure projects to
balance the budget due to anticipated revenue loss. This loss, due to the shelter-in-place orders
and related restrictions in the economy, amounted to $4.5 million revenue loss in 2019-20 and is
expected to yield a similar loss for the current fiscal year largely due to declines in sales and
lodging tax as well as Parks & Recreation fees. However, the swift action by the City Council
and City management as outlined above kept the City in positive fiscal standing, allowing the
Council to make investments in the community and support the economic recovery from
unassigned fund balance.
As staff expects a return to “normal” over the remainder of the 2021 calendar year, the need to
address resource deficiencies and catch up on programs addressing pent-up customer demand
manifests itself in requests for operating budget and capital infrastructure funding for the next
two-year Financial Plan.
American Rescue Plan – Federal Stimulus Funding
As a small city with under 500,000 in populatio n, San Luis Obispo did not receive any direct
CARES act funding from the Federal Government. It did receive $566,236 from the State that
was appropriated towards emergency measures in response to the Covid-19 pandemic. These
funds were roughly split to reimburse the City for emergency expenses which amount to over
$2.1 million and fund homeless response and economic recovery efforts.
On March 6, 2021, the Federal Government released a second stimulus bill known as the
American Rescue Plan (ARP), releasing $1.9 trillion in funding. In a historic move, the bill
includes direct payments to 19,000 municipalities in the nation and San Luis Obispo will receive
$8.93 million to counter-act the far-reaching effects of the pandemic on the community’s well-
being. For a jurisdiction such as the City, funding will come through the State which has 60 days
to release the first half with the second 50% being distributed a year later. Jurisdictions have
until December 31, 2024 to spend the funding. The restrictions on the use of funds are few, but it
clearly denotes that it cannot be used to fund pension obligations. Staff recommends using the
funding pursuant to:
“For the provision of government services to the extent of the reduction in revenue of
such State, territory, or Tribal government due to the Covid–19 public health emergency
relative to revenues collected in the most recent full fiscal year of the State, territory, or
Tribal government prior to the emergency.”
Page # 3
Considering the City’s revenue in sales tax, transient occupancy tax, and Parks & Recreation fees
in 2018-19, $4.4 million were lost in 2019-20 and a further loss of $4.5 million is expected in
2020-21 in those three revenue categories. The ARP funding will therefore assist in reinstating
frozen positions, provide funding for homelessness and housing, and invest in capital projects
that had to be defunded due to the revenue shortfall. It will therefore allow the City to remove
Fiscal Health Contingency Plan restrictions earlier than otherwise possible.
STRATEGIC BUDGET DIRECTION REPORT
LONG-TERM FISCAL FORECAST – SECTION A
This section contains the five-year forecasts for the City’s five major funds. It leads with the 1)
General Fund, followed by 2) Water, 3) Sewer, 4) Parking, and 5) Transit.
Per the City’s fiscal policies, the two-year budget proposal within the Financial Plan must be
balanced2. The forecast can indicate potential issues in the outer years to alert the City Council of
potential structural corrective measures, should the assumptions hold true. However, if 2020 has
showcased anything, unpredictability and forecasting of longer-term assumptions are difficult
and subject to change. Nonetheless, Staff is committed to provide the Council the most
professional and judicious assessment for informed financial decision making.
Fiscal Year 2021-22 will mark the first full year with revenue from the November 2020 voter-
approved sales tax measure. This can be seen in the increase in sales tax revenue projections as
well as in the investment in infrastructure under Capital expenditures. The measure will also
support operating budgets in the areas that correspond with the measure language to increase
services to the community. For the upcoming two-year financial plan, increases in operating
budgets are also made possible due to the American Rescue Plan (ARP) stimulus funding made
available by the Federal Government to counteract the devastating revenue losses experienced
during the Covid-19 pandemic.
The local sales tax measure became effective on April 1, 2021, and funding received during the
first quarter was dedicated to economic recovery and reopening efforts as recommended by the
Revenue Enhancement Oversight Commission and approved by the City Council.
General Fund – Five-Year Forecast* (in thousands)
2021-22 2022-23 2023-24 2024-25 2025-26
Revenue $99,801 $103,748 $101,410 $103,412 $105,315
Expenditure $98,849 $103,717 $100,542 $103,178 $105,157
Over/Under $951 $32 $868 $234 $158
*all numbers shown in thousands
The City’s four enterprise funds for the Water and Sewer Utilities, Parking, and Transit also
prepare a long-term forecast which can be found under Section G of the Strategic Budget
Direction report.
2 City of San Luis Obispo Budget Policies: A. Balanced Budget. The City will maintain a balanced budget over the
two-year period of the Financial Plan.
Page # 4
MAJOR CITY GOALS FOR 2021 THROUGH 2023 – SECTION B
City Council Vision for its 2021-23 Major City Goals
The City of San Luis Obispo is a dynamic community embracing its future while respecting its
past with core values of civility, sustainability, diversity, inclusivity, regionalism, partnership,
and resiliency.
Major City Goals Work Programs
The major city goal work programs identify the fiscal resources for programmatic and capital
efforts to achieve the recommended milestones within each goal. The four goals are largely a
continuation along the trajectory of previous Council goals established during the last financial
plan except for Diversity, Equity, and Inclusion (DEI). Each work program has been uniquely
crafted to respond to discrete direction while continuing efforts that span multiple financial
plans. The investments have also considered the City’s current service levels to the community
to assess investments in the established work programs. As such, the budget included in the
strategic budget direction is balanced between current services to the community and the
program cost included in each major city goal.
Council review is now requested to ensure that staff’s proposed work programs appropriately
fulfill the Council’s vision for the established goals over the next two years. Section B of the
report includes the strategic approach and individual work efforts.
Economic Recovery, Resiliency & Fiscal Sustainability – Goal Statement
In collaboration with local partners, continue to support economic recovery for all from
the Covid-19 pandemic and support a thriving local economy by supporting local
businesses, arts and culture, downtown vitality, practicing fiscal responsibility, paying
down unfunded pension liabilities, and investing in critical infrastructure.
Outcomes and Expectations
The City will:
1.Engage and expand upon community partnerships and invest in infrastructure,
promotion, programs, and polices that support the economic and social recovery and
resiliency of the community while ensuring fiscal sustainability.
2.Additional focus will be placed on the retention of existing businesses, the recovery
of arts and culture, the vitality of the downtown, and supporting underserved groups
and populations.
3.Additionally, all actions will be viewed through the lens of the City’s sustainability
and DEI efforts.
The outcomes associated with this goal are the retention and attraction of business, fiscal
sustainability, support of arts and culture projects, a vibrant and active downtown, pre-
payment of unfunded pension liabilities, and investment in key infrastructure.
Page # 5
Investment in the Economic Recovery, Resiliency, & Fiscal Sustainability Major
City Goal
Table 1: 2021-23 Financial Plan
Major City Goals 2021-22 2022-23
1 Ongoing Community Services $6,522,764 $6,357,764
2 New Operating Investments $2,592,968 $1,865,440
3 Capital Infrastructure Projects $3,462,500 $8,089,500
Total $12,578,232 $16,312,704
Housing and Homelessness – Goal Statement
In order to expand housing options for all, continue to facilitate the production of
housing, including the necessary supporting infrastructure, with an emphasis on
affordable and workforce housing. Collaborate with local non-profit partners and the
county, the state, and federal governments to discover and implement comprehensive and
effective strategies to reduce chronic homelessness.
Outcomes and Expectations
The City will:
1.Prioritize new and ongoing Housing Element policies and programs that focus on
facilitating the increased production of affordable and workforce housing, in
addition to market rate housing.
2.Engage with the community, regional agencies, local non-profit partners, and the
Federal government to leverage resources to be utilized to implement strategies
that reduce homelessness.
The outcomes will be new housing production, infrastructure that supports housing,
affordable housing partnerships, less persons that are unhoused, pilot programs that can
be supported on an ongoing basis and increased funding and engagement from state and
county governments in support of these outcomes at a local level.
Investment in the Housing and Homelessness Major City Goal
Table 2: 2021-23 Financial Plan
Major City Goals 2021-22 2022-23
1 Ongoing Community Services $1,155,364 $1,131,324
2 New Operating Investments $1,133,597 $1,077,226
3 Capital Infrastructure Projects $9,090,100 $25,105,817
Total $11,379,061 $27,314,367
Diversity, Equity, Inclusion (DEI) – Goal Statement
In response to our commitment to making San Luis Obispo a more welcoming and
inclusive city for all, continue to develop programs and policies to support diversity,
equity, and inclusion initiatives and advance the recommendations of the DEI Task
Force.
Page # 6
Outcomes and Expectations
The City will engage in initiatives that advance DEI within the organization and
community:
1.Develop and implement strategies, programs and policies that build a workplace
culture and community of inclusion, fairness and belonging for all.
2.Involve marginalized communities and diverse voices in program development and
delivery to ensure current lived experiences are understood, priorities are addressed,
and the City’s efforts are relevant and meaningful.
3.Partner with proven community providers and utilize best practice models to leverage
City resources and maximize effectiveness and impact of initiatives.
4.Identify and track measurable results as the City progresses in maturing diversity and
inclusion efforts.
The outcomes associated with this goal are a more welcoming organization, community,
and an improved sense of belonging by marginalized groups. The City will have a richer
and more thorough understanding of the challenges that many are experiencing in San
Luis Obispo and implement best practices to measure and adjust practices to advance
DEI efforts.
Investment in the Diversity, Equity, Inclusion Major City Goal
Table 3: 2021-23 Financial Plan
Major City Goals 2021-22 2022-23
1 Ongoing Community Services $180,500 $191,000
2 New Operating Investments $588,630 $650,097
3 Capital Infrastructure Projects $345,000 $95,000
Total $1,114,130 $936,097
Climate Action, Open Space, & Sustainable Transportation –
Goal Statement
To proactively address the climate crisis, continue to update and implement the Climate
Action Plan for carbon neutrality, including preservation and enhancement of open space
and the urban forest, alternative and sustainable transportation, and planning and
implementation for resilience.
Outcomes and Expectations
The City will engage in projects and initiatives that contribute positively toward:
1.Reducing greenhouse gas emissions at both the municipal and community level on a
trajectory consistent with the Climate Action Plan target of carbon neutrality by 2035.
2.Achieving the vision to complete and sustain the San Luis Obispo Greenbelt.
3.Integrating best practices for urban forestry throughout the community and City
landscape in order to accrue the multiple benefits that trees provide including shading
and cooling, beautification, habitat, stormwater retention, and carbon sequestration.
4.Implementation of Tier 1 projects identified in the Active Transportation Plan (ATP),
and planning and investment in transit service enhancements and transit fleet
Page # 7
electrification, in order to achieve the mode-share split objectives identified in the
Circulation Element of the General Plan.
5. Adapting and becoming more resilient to the impacts of climate change through the
Resilient SLO planning process and through increased implementation efforts that
address public health and safety.
In addition, it is expected that this work must necessarily be integrated and cohesive
with the parallel Major City Goals of Diversity, Equity, and Inclusion; Housing and
Homelessness; and Economic Recovery, Resilience, and Fiscal Sustainability.
The outcomes are reduced community wide and municipal emissions, expanded
electrical charging network, more electric city vehicles, expanded open space areas, an
improved and increased urban forest, and a community that is better prepared to respond
to the vagaries and unpredictability of climate change.
Investment in the Climate Action Major City Goal
Table 4: 2021-23 Financial Plan
Major City Goals 2021-22 2022-23
1 Ongoing Community Services $203,500 $228,500
2 New Operating Investments $667,376 $454,702
3 Capital Infrastructure Projects $14,592,660 $14,397,731
Total $15,463,536 $15,080,933
Overall Investment in all Major City Goals for 2021-23
Combined, the investment over the next two years for the four defined Major City Goals are as
follows:
Operating Capital Total
Investment Operating Capital Total
Investment
1
Climate Action, Open Space, Sustainable
Transportation 870,876$ 14,592,660$ 15,463,536$ 683,202$ 14,397,731$ 15,080,933$
2 DEI 769,130$ 345,000$ 1,114,130$ 841,097$ 95,000$ 936,097$
3 Economic Recovery 9,115,732$ 3,462,500$ 12,578,232$ 8,223,204$ 8,089,500$ 16,312,704$
4 Housing & Homelessness 2,288,961$ 9,090,100$ 11,379,061$ 2,208,550$ 25,105,817$ 27,314,367$
5 Total 13,044,699$ 27,490,260$ 40,534,959$ 11,956,054$ 47,688,048$ 59,644,102$
2021-22 2022-23
Table 5: Total Major City Goal Investment
MCG
ONGOING COMMUNITY SERVICES – SECTION C
The City of San Luis Obispo, like most incorporated cities, provides services to the community
on an ongoing basis. Those services are adjusted to the needs of the community and span from
parks and recreation services, police and fire departments, housing services, transportation
services (including public transportation), and public works (streets and related infrastructure
such as multiuse paths, streetlights, bridges, parks maintenance, signage, and so forth). Those
established programs must be considered when budgeting and generally form the base and
largest share of the City’s expenditures. Core or ongoing program deliveries are what the
community has come to most rely on to meet its day-to-day needs and desired services.
Page # 8
To a degree, the goal setting process allows for the discussion on those services and considers
trade-offs when new initiatives are desired and the community’s needs change over time. The
proposed budget for the 2021-23 Financial Plan considers the following community services that
have been established over many years of community input:
The table below shows the draft budget allocations by department. These allocations do not
include the proposed SOBCs that are listed in Section E. Preliminary budget allocations fluctuate
each year due to current employee costs and changes in costs of services and supplies.
Historically, the City experiences a 2-5% increase in total operating budget year-over-year. Some
outliers include:
•Community Services Administration includes the addition of a Public Communications position
approved on February 2, 2021 (R 11223).
•Parks & Recreation experienced a particularly high increases in their FY 21-22 budgets due to
the re-activation of frozen positions that were eliminated in the FY 20-21 supplemental budget
due to Covid-19 uncertainties. These expenditure increases are offset by increases in projected
revenue for the 21-23 Financial Plan years.
•Finance Non-departmental includes contingencies for future wage increases in FY 22-23.
Page # 9
FY 21-22
Base Budget
% change from
FY21
FY 22-23
Base Budget
% increase
from FY22
1 Administration & IT 7,697,781$ 7,821,976$ 2%8,187,589$ 5%
2 City Attorney *778,167$ 703,157$ -10%735,588$ 5%
3 Finance 2,054,424$ 2,036,560$ -1%2,111,580$ 4%
4 Finance Non-Departmental 730,358$ 730,358$ 0%2,161,928$ 196%
5 Human Resources*1,350,586$ 1,182,348$ -12%1,212,569$ 3%
6 Police 17,802,862$ 18,960,959$ 7%19,823,240$ 5%
7 Fire 12,615,778$ 13,404,792$ 6%13,644,858$ 2%
8 Community Services Group:
9 Community Services Admin 404,998$ 480,349$ 19%491,351$ 2%
10 Community Development * 5,325,811$ 5,229,559$ -2%5,366,891$ 3%
11 Public Works 13,196,459$ 13,595,504$ 3%14,067,284$ 3%
12 Utilities - Solid Waste 159,318$ 170,699$ 7%176,280$ 3%
13 Parks and Recreation 4,274,301$ 4,737,956$ 11%4,944,660$ 4%
14 Total 66,390,843$ 69,054,217$ 4%72,923,819$ 6%
**Adopted budget does not include carryover or budget amendments
2021-23 Financial Plan Years
* 20-21 Adopted Budget includes approved one-time SOBCs from the 19-21 Financial Plan; therefore, a reduction is seen in FY 21-22
from the removal of these budget items.
FY 20-21 Adopted
Budget** Department
Table 6: Core Services Operating Budget Allocations (before recommended SOBCs)
The budget recommendations for the Utilities, together with Parking and Transit, can be found in
Section G – Enterprise Funds
LOCAL REVENUE MEASURE – SECTION D
The proposed 2021-23 Local Revenue Measure (LRM) operating and capital expenditures were
developed using input from the Community Forum, the Major City Goals established by the City
Council, updated revenue projections, and the funding priorities developed from the ballot
language. This planning was extensive as, with the voter approval in November, the revenue
from this measure will grow to $24 million over the next Financial Plan period. On March 31,
2021, the Revenue Enhancement Oversight Commission (REOC) met to review the proposed
expenditures and recommended approval by the City Council as presented and outlined in
Section D. Based on community input used to create the ballot language for Measure G-20, at
the February 18, 2021 meeting, the REOC approved the following ten spending priorities that
were used to create the recommended projects and services to be included in the 2021-23
Financial Plan:
1.Protect Financial Stability
2.Community Safety and Emergency Preparedness
3.Creek and Flood Protection
4.Address Homelessness
5.Safe and Clean Public Areas
6.Economic Development and Business Retention
7.Youth/Senior Services and Recreation Facilities
8.Street Maintenance and Transportation (includes bicycle and pedestrian improvements)
9.Open Space/Natural Areas Preservation and Maintenance
10.Other Services and Projects
Page # 10
Previous input from the community and REOC has been to prioritize Local Revenue Measure
funds for capital improvement program (CIP) projects. In recent years, expenditures have been
split approximately 70% to capital infrastructure and 30% to operating costs. Operating program
costs frequently follow and/or support the implementation of CIP projects; for instance, the
construction of a new park will require staff to maintain it. In addition, operating programs
deliver essential services that align with Local Revenue Measure priorities. Given this
interrelationship, it would not be sustainable to allocate all Local Revenue Measure dollars solely
to CIP projects without related operating program support to implement the projects nor would
this approach address some of the expectations from the public for services to maintain and
safeguard community programs and assets.
In the 2021-23 Financial Plan, expenditures are proposed to be budgeted at 75% capital and 25%
operating costs, with an expectation of a range in future years of approximately 85% capital and
15% operating costs in order to meet the non-fair requirements of the City’s AB 1600
Development Impact Fee Program and keep up with maintenance.
The reason for the increased operating allocation during the 2021-23 Financial Plan is two-fold.
First, there is an increase of one-time funding that will help provide immediate economic
recovery resources and other operating resources needed to help the community’s recovery from
the Covid-19 pandemic and other emergent priorities. Second, it allows the City time to ramp -up
the operating resources necessary to deliver on the ambitious Capital Improvement Plan. The
split between CIP and operating costs for the 2021-23 Financial Plan are listed below:
Table 7:
Investment in Capital
Projects
Investment in Operating
programs
1 FY 2021-22 $17,866,400 $6,285,392
2 FY 2022-23 $18,763,050 $6,273,051
A full breakdown of budget allocations and LRM uses can be found in Attachment A under
Section D.
SIGNIFICANT OPERATING BUDGET CHANGES – SECTION E
As a cost control measure, the City requires increases to departmental budget line items in the
programs above $7,500 to be justified and approved by the City Manager before being brought
forward for Council consideration. A request can be brought forth for a variety of reasons, but is
generally considered under the following circumstances:
A. Essential for the protection of health and safety.
B. Needed for the advancement of Major City Goals.
C. Needed to provide ongoing services to the community.
D. Realign ongoing services after budget cuts due to Covid-19.
Page # 11
SOBC requests are divided into two categories: 1) one-time for specific deliverables without
ongoing service requirements; 2) ongoing to adjust the operating program budget for long-term
service delivery.
Given the short-term saving measures required due to the onset of the Covid-19 health
emergency, a multitude of requests were submitted to bring service levels back to pre-pandemic
levels and adjust to forecasted workload and service level requirements. A detailed listing of the
requests can be found in Section E of the attached report.
The City’s Financial Plan Steering Committee reviewed the requests and recommends the
following investments in SOBCs.
Connected to delivery of MCGs:
Table 8:
Major City Goal SOBCs (all funds)21-22 22-23
1 One-time 2,966,886$ 2,026,009$
2 Climate Action 349,972$ 127,437$
3 DEI 389,732$ 435,102$
4 Economic 1,564,857$ 867,644$
5 Housing & Homelessness 662,326$ 595,826$
6 Ongoing 2,015,686$ 2,021,455$
7 Climate Action 317,405$ 327,265$
8 DEI 198,898$ 214,995$
9 Economic 1,028,112$ 997,795$
10 Housing & Homelessness 471,271$ 481,400$
11 Total 4,982,572$ 4,047,465$
SOBC Funding
Connected to Ongoing Community Service Delivery:
Table 9:
Core Services SOBC Funding (all funds)21-22 22-23
1. One-time 985,554$ 473,774$
2. Ongoing 1,771,899$ 2,410,341$
Grand Total 2,757,453$ 2,884,115$
SOBC Funding
CAPITAL IMPROVEMENT PLAN – SECTION F
The Capital Improvement Program (CIP) and its annual implementation of projects is one of the
primary functions of local government. Through its adopted CIP, the City meets community
needs by providing the infrastructure required for economic vitality, neighborhood wellness,
housing, transportation, sustainability, active and passive recreation, public safety, cleanliness,
and other basic amenities.
Page # 12
City staff engage in a rigorous ranking and review process to develop a Capital Improvement
Project Plan for Council consideration that both aligns with MCGs and addresses ongoing
maintenance needs, and infrastructure improvements to support the orderly development of the
community in alignment with mitigations, policies, and other development standards. The
program now considers the new local sales tax measure that will provide an additional $13
million for infrastructure maintenance and improvements bringing the total infrastructure
investment from this revenue source to about $18 million for the financial plan years.
Through the CIP, the City systematically plans, schedules, and finances capital projects to ensure
cost-effectiveness and conformance with established policies. With each two-year Financial
Plan, the City prepares five-year CIP program recommendations for Council consideration and
approval. Even though only the first two years are funded within the Financial Plan, five -year
planning is a best practice and is recommended to achieve long-term objectives of the Capital
Improvement Program. Comprehensive policies governing the development and management of
the CIP are set forth in the fiscal policies. All the City’s construction projects, and equipment
purchases costing $25,000 or more are included in the Capital Improvement Plan.
To assist the City Manager in developing the recommended CIP for the 2021 -23 Financial Plan,
a designated CIP Review Committee evaluated all departmental requests to determine priority,
timing, and cost. In doing so eight key questions served as a framework for this extensive
analysis and included focus on DEI, Sustainability and implementation of community priorities
associated with the local revenue sales tax measure.
Based on prior Council direction and public input regarding the importance of maintaining
existing infrastructure, City staff put all project requests in the following three categories.
1.Annual Asset Maintenance
2.Asset Replacement
3.New Assets
Table 10:
ID Project Type FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
Sum of 5
Year Total
1 Annual Asset Maintenance $19,738,490 $23,033,876 $18,692,315 $19,103,830 $17,807,501 $98,376,012
2 Asset Replacement $27,634,664 $22,686,846 $11,255,001 $2,920,001 $63,182,001 $127,678,513
3 New Asset $13,019,500 $20,243,597 $46,902,000 $67,555,000 $6,265,000 $153,985,097
4 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $4,500,000
5 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 $384,539,622
As mentioned above, the City’s capital budget has grown significantly as a result of the local
sales tax measure and the potential for leveraging capital budget dollars further with federal
government grants. To deliver these projects, the City may need additional engineering and/or
project delivery staffing resources. The City is currently working in partnership with a consultant
to analyze the project staff and structure required to deliver the projects over both the two -year
and the five- year time horizon. As identified in the table above, a general cost estimate for this
consideration is provided.
Page # 13
Table 11: Water Rate Increases
2021 - 22 Proposed 2022 - 23 Proposed 2023 - 24 Projected
3 .5% 3 .5% 3. 5 %
ENTERPRISE FUNDS – SECTION G
G-1: Water Fund
Fund Overview & Forecast
The Water Fund safely and continuously provides water to the community. This requires
securing raw water from three surface reservoirs, treating it to potable water standards, and
delivering it to nearly 16,000 water service accounts, while continually maintaining and
improving infrastructure. These City water operations rely on service rate revenue to cover
almost all costs for operations and maintenance, infrastructure replacement, debt service, and
payment for general City services provided to the fund (cost allocation). Taxes, including the
Utility User Tax, do not support these services.
Despite the uncertainty created by the Covid-19 pandemic, the Water Fund’s financial position is
currently stable. At the onset of the pandemic, and associated stay-at-home order and business
closures, the potential impact to the Water Fund was uncertain. The Utilities Department has
closely monitored revenue since March 2020 and, while there has been some shift in usage
patterns in residential and commercial sectors, overall, there has been no significant net impact to
Water Fund revenue. Overall, the Water Fund’s long-term fiscal outlook is in line with original
forecasts and can be found in Section G-1 of Attachment A.
Rate Increases
The Water Fund will be requesting a rate increase of 3.5% effective July 1, 2021 and 3.5%
effective July 1, 2022. The most recent rate study, conducted in 2018, projected the water rate
increase would be 5.5% in 2021 and 5.5% in 2022. The City’s rate consultant recently completed
a rate confirmation study to confirm or modify these rate increase estimates. As a result of
additional revenue expected from Cal Poly and refined investment and impact fee revenue
projections, the rate consultant has recommended lower than previously forecasted rate
increases.
Operating Expenditures
Overall, operating expenditure budgets are changing very little in 2021-22 and 2022-23. The
Water Fund is requesting some SOBCs as summarized below and detailed in Section G of the
attached report:
Table 12:
SOBC Type 21-22 22-23 Total
One-time 80,000$ 80,000$
Ongoing 147,221$ 132,902$ 280,123$
Total 227,221$ 132,902$ 360,123$
Page # 14
Capital Projects
Below is a highlight of the 2021-23 Water Fund capital projects:
1.Reservoir 2 Cover Replacement. This project will replace the floating cover on the
City’s largest treated water storage tank. This cover has reached its expected useful life
and needs replacement. This project will cost $10,000 in 2021-22 and $950,000 in 2022-
23.
2.California – Stafford to Mill Waterline Project. This project replaces segments of a
16-inch water main that supplies water to roughly half of the City. This segment of
pipeline runs through the bridge deck over Highway 101 and has a high consequence of
failure. This project will cost $140,000 in 2021-22 and $1,650,000 in 2022-23.
3.Broad Street – Tank Farm to Aerovista Recycled Water Expansion Project. This
project will extend recycled water lines from the intersection of Tank Farm and Broad
Streets to Aerovista where this water can be utilized within the Airport area. This project
will cost $45,000 in 2020-21 and $1,040,000 in 2021-11.
4.Water Treatment Plant Infrastructure Renewal Strategy. The renewal strategy will
allow plant staff to prioritize Water Treatment Plant related capital improvement projects
for the next decade. This project will cost $150,000 in 2020-21.
G-2: Sewer Fund
Fund Overview & Forecast
The Sewer Fund safely and continuously provides wastewater service to the community. This
requires delivering wastewater from its various sources to the Water Resource Recovery Facili ty
(WRRF), ensuring compliance with the Clean Water Act, and treating an average of three
million gallons of wastewater per day, while maintaining and improving wastewater
infrastructure. These City sewer operations rely on service rate revenue to cover almost all costs
for operations and maintenance, infrastructure replacement, debt service, and payment for
general City services provided to the fund (cost allocation). Taxes, including the Utility User
Tax, do not support these services.
Despite the uncertainty created by the Covid-19 pandemic, the Sewer Fund’s financial position is
currently stable. At the onset of the pandemic, and associated stay-at-home order and business
closures, the potential impact to the Sewer Fund was uncertain. The Utilities department has
closely monitored revenue since March 2020 and, while there has been some shift in usage
patterns in residential and commercial sectors, overall, there has been no net impact to Sewer
Fund revenue. Overall, the Sewer Fund’s long-term fiscal outlook is in line with original
forecasts and can be found in Section G-2 of Attachment A.
Rate Increases
The Sewer Fund will be requesting a rate increase of 3.5% effective July 1, 2021 and 3.5%
effective July 1, 2022. The most recent rate study, conducted in 2018, projected the sewer rate
increase would be 6.5% in 2021 and 6.5% in 2022. The City’s rate consultant recently completed
Page # 15
a rate confirmation study to confirm or modify these rate increase estimates. As a result of
additional revenue expected from Cal Poly and refined investment and impact fee revenue
projections, the rate consultant has recommended lower than previously forecasted rate
increases.
Table 13: Sewer Rate Increases
2021-22 Proposed 2022-23 Proposed 2023-24 Projected
3.5% 3.5% 3.5%
Operating Expenditures
Overall, operating expenditure budgets are changing very little in 2021-22 and 2022-23. The
Sewer Fund is requesting some SOBCs as summarized below:
Table 14:
SOBC Type 21-22 22-23 Total
One-time 57,517$ 11,865$ 69,382$
Ongoing 252,381$ 413,087$ 665,468$
Total 309,898$ 424,952$ 734,850$
Capital Projects
Below is a highlight of the 2021-23 Sewer Fund capital projects:
1. Water Resource Recovery Facility (WRRF) Project. The WRRF will continue
construction through the 2021-23 Financial Plan with project completion estimated in late
2023, early 2024. This is an ongoing project with a total construction budget of
$140,000,000.
2. Calle Joaquin Lift Station Replacement. This project will replace the aging lift station
and sewer line crossings at San Luis Obispo Creek and Highway 101. The new station
will meet the demands of the Froom annexation and new development in the Laguna
area. Recent bids received for this project exceeded the budget and staff will return to
Council with a request to rebid with modified scope and additional funding in Fall of
2021.
3. Airport Gravity Mainline. This project will replace the existing airport lift station with
a gravity sewer. The new mainline will serve existing customers, recent annexations, and
future development in the airport area. This project will cost $2,020,000 in 2021-22.
4. Mainline Replacements. Replacements on Morro Street, Mill Street and Santa Rosa
Street along with replacement of mainlines in the capacity constrained areas of Sierra
Way, Henry, and Islay Street. These projects will cost $1,571,000 in 2021-22 and
$5,345,000 in 2022-23.
5. Inflow and Infiltration. Ongoing funding for voluntary sewer lateral replacements and
Page # 16
mainline repairs to reduce the Inflow and Infiltration (I/I) of stormwater into the
wastewater collection system. This project will cost $200,000 in 2021-22 and $250,000
in 2022-23.
G-3: Parking Fund
Fund Overview & Forecast
The fiscal outlook for the next two years shows the Parking Fund’s working capital balance
significantly reduced because of lower-than-expected revenues, planned expenditures associated
with the Palm-Nipomo Parking Structure project, the continued loss of high rate of return meter
spaces for parklets (approximately $350,000 a year3), and a series of needed parking structure
annual maintenance projects. Additionally, demand for long-term parking spaces has reduced
significantly due to impacts from the pandemic and continue to trend in a lower occupancy
caused by new health guidelines.
The prolonged impacts from the pandemic and the support efforts provided to the Downtown’s
recovery efforts have strained the Parking Fund. End of year unreserved working capital is
projected to be $11.4 million, representing a $3 million loss during the fiscal year, with revenues
below the coverage ratio requirements for debt service. This debt service ratio coverage is a
critical component for future funding and could jeopardize the Fund’s ability to receive an I-
Bank loan to fund the needed Palm/Nipomo parking structure. As such, based on current revenue
and expenditure projections, the Parking Fund as of the writing of this report is projecting the
year end need for $1.23 million (subject to change as revenues are collected) to support the
Fund’s ability to meet debt service requirements for FY 2020 -21. Addressing this short-term
need will occur at the June 15th Council meeting when more information is known.
To achieve short-and long-term goals and objectives of the Parking Fund, while continuing to
support the economic recovery of the City’s downtown core, staff are proposing a multi-part
strategy. This multi-part strategy includes changes in staffing and operating, to reduce
expenditures alongside increases to revenues to cover the required debt service ratio for planned
structure expansion in future years. The continued pandemic impacts and project
development/timeline of the Palm-Nipomo Parking Structure necessitate several significant
program changes and Council’s feedback.
Direction is sought from Council to address long term needs on the specific proposed rate and
program changes (outlined below). The additional revenue from the program and fee changes
is anticipated to be $1,796,600/Yr. If they are not accepted as proposed, the Parking Fund will
not present a balanced budget. Without program and fee adjustments, it is likely that the full
buildout of the Palm/Nipomo Garage will be delayed and could impair economic recovery.
Rate and Program Changes
Staff is recommending a combination of long-term revenue enhancement strategies focused on
3 This is the estimated annual amount based on historical revenue by on street parking space, exclusive of any
parking citation receipts.
Page # 17
three areas: 1) parking garages, 2) on-street and lot parking, and 3) enforcement with the
objective of stabilizing and positioning the parking fund to timely construct needed parking
facilities and manage and incentivize desired parking behaviors. These behaviors include
disincentive short driving trips, walking, biking, parking in neighborhoods, and encouraging
parking in structures rather than on surface streets.
Parking Garages
1.Eliminate 1st Hour of Free Parking in Parking Garages
2.Implement Deferred Rate Increase in Parking Garages (Approved for July 2020)
3.Reduce Parking Garage Max Daily Rate
On-Street & Lot Parking
4.Implement Paid Parking in Upper Monterey Area
5.Implement Paid Parking in Railroad Square
6.Implement Deferred Rate Increase for On-Street and Lot Parking (Approved for July
2020)
7.Expand Enforcement Hours from 6:00 pm to 9:00 pm for On-Street and Lot Parking
8.Transition to Tier-Based Pricing for On-Street and Lot Parking
Enforcement
9.Expand Enforcement Hours from 6:00pm to 9:00pm
10.Increase Penalty Schedule for Safety Violation Fine Amounts
11.Implement and Establish Residential Parking Permit District in Old Town and Upper
Monterey Area Districts
12.Enforcement of the Old Town Parking District
Table 15:
Parking Rate
Changes
Current
Parking Rates
(Mo./Qtr.)
Proposed*
Effective
July 1, 2021
Proposed**
Effective
July 1, 2023
Proposed**
Effective
July 1, 2025
1 Parking Meters
(Hourly)
2 Tier 1 (Super
Core) $1.75 $2.00 $2.50 $3.00
3 Tier 2 (Core) $1.50 $1.75 $2.50 $3.00
4 Tier 3 (Outlying
Areas) $1.00 $1.25 $1.50 $2.00
5 Parking
Structures
6 Hourly/Daily Max $1.25/$12.50 $1.50/$6.00 $1.75/$7.00 $2.00/$8.00
7 Monthly/Quarterly $85/$255 $85/$255 TBD TBD
8
DROP (Overnight
parking for DT
residents)
$125/$375 $125/$375 TBD TBD
9 Permits
10 Residential
Parking Permit $20 $20 $25 $25
11 DT Residential $20 $20 $25 $25
Page # 18
Parking Rate
Changes
Current
Parking Rates
(Mo./Qtr.)
Proposed*
Effective
July 1, 2021
Proposed**
Effective
July 1, 2023
Proposed**
Effective
July 1, 2025
Parking Permit
12 10-Hour Meter
Permit $60 $60 TBD TBD
13 Other
14 Parking Structure
Validations $75 for 100 $90 for 100 $100 for 100 $100 for 100
*Previously approved by Council to take effect July 1, 2020 but was deferred due to Covid-19
pandemic
**Not part of the action items for Council but are included in the Long-Term Forecast and will be
addressed in future budget discussions.
Operating Expenditures - with Net Reductions
The proposed parking fund budget includes a series of Significant Operating Budget Changes
necessary to address daily needs of the Parking operations for the City. These enhancements are
necessary to ensure that the Parking Fund can effectively expand operations to cover the Fund’s
debt service even during times of economic uncertainty. These requests are offset by a reduction
of contracted services.
Table 16: Parking Fund SOBCs 21-22 22-23 Total
1 Ongoing
2 Parking Enforcement (3 FTE Additions)220,927$ 230,947$ 451,874$
3 Parking Maintenance (2 FTE Additions)138,187$ 144,392$ 282,578$
4 Revenue and Contract Services Reductions Offset (558,123)$ (645,114)$ (1,203,237)$
5 Total (199,008)$ (269,775)$ (468,784)$
Capital Projects
The Palm-Nipomo parking structure construction cost is currently estimated at $43.5 million
with initial work beginning in FY 2021-22. A $6.5 million contribution from working capital for
phase 1 that will occur in FY 2021-22 and FY 2022-23 and $37 million from bond issuance for
phase 2 of construction that will begin in FY 2023-24. The phase 2 of construction is estimated
to take 18-24 months with the structure opening for operation at the beginning of FY 2025-26.
These amounts are subject to change based upon revised project estimates and final ratio of cash
versus debt financing amounts.
Additionally, gateless parking structure upgrades, fleet replacement, HVAC air handler
replacement and miscellaneous information technology requests are included within the capital
improvement plan budget.
G-4: Transit Fund
Fund Overview & Forecast
The Transit Fund has endured the pandemic with a balanced budget largely because of federal
Page # 19
funding assistance and reduced costs from reduced operations. The Fund also holds a healthy
working capital balance. The fiscal outlook for the next five years and the uncertainty in future
ridership post pandemic (affecting all public transportation services) has resulted in restrained
projections. At this time, revenues are projected to sufficiently keep pace with escalating costs.
However, any significant changes, such as the expansion of the transit program, will require
additional funding sources or an increase in rates in addition to rate increase discussed below.
Part of this strategy includes negotiating a new agreement with increased cost of service recovery
from Cal Poly.
Rate Increases
On April 4, 2017, the Council adopted the transit fare and interior bus advertisement rates which
included annual rate increases. This is critically important to achieve the SLO Transit’s 20%
Local Revenue requirements. To better support SLO Transit’s customers during the pandemic,
in between March 2020 and July 2020 SLO Transit went fare-free and delayed the planned July
2020 rate increases. This action helped to protect both SLO Transit customers and staff. In July
2021, delayed rate increases will go into effect. A Regular Pass will increase from $38 to $40
and Senior and Disabled Pass will increase from $18 to $20.
Capital Projects
Capital projects continue to be a challenge for the Transit Fund which is highly reliant on
discretionary grants. Proposed projects are limited to those that are essential and that can be
funded from grants. Of those projects, the replacement of diesel buses with electric vehicles are
the highest priority as well as the installation of necessary charging infrastructure to support
electric vehicles. And while discretionary grant awards have been less than previously
anticipated, the recently passed American Rescue Plan (ARP) includes enhanced federal transit
funds that may be used for capital expenditures and that coupled with the infusion of CARES
Act will assist SLO Transit meeting operational and capital needs. Programming of ARP
funding to SLO Transit will be completed in conjunction with the San Luis Obispo Council of
Governments (SLOCOG) and will be present to City Council at a future date anticipated to be at
the Mid-Year Budget Review in 2022.
RECOMMENDED POLICY CHANGES FOR LONG-TERM FISCAL HEALTH –
SECTION H
The City has developed comprehensive budget policies to guide its ongoing financial processes,
ability to react to extraordinary circumstances and maintain the long-term health of the City. The
policies are constantly reviewed for best practices, continued practical application, and are
amended when emerging issues warrant.
Staff is currently working on updates to the City’s debt management policy and the City’s
adopted fund balance and reserve levels that will be presented to Council in May. Under the
latter, staff recommends incorporating language for the remaining funding set aside under the
non-departmental contingency at year-end to carry over to the new fiscal year, so that only the
difference between the balance and required budget has to be appropriated. This would eliminate
Page # 20
the funding to return to fund balance and having to be appropriated again the next year.
Policy Context
The City Charter under Article VIII, Section 802, 803, and 804, requires the City Manager to
present an annual budget to the City Council, for the City Council to hold a public hearing on the
budget, and to adopt a budget. California Government Code Sec 53901 requires each local
agency to file its budget with the county auditor within 60 days after the beginning of its fiscal
year. If an agency does not have a “formal budget” it must “file a listing of its anticipated
revenues, together with its expenditures and expenses for the fiscal year in progress” which
amounts to much the same thing as a budget.
The City’s budget and fiscal policies are included in each budget document and changes and
revisions recommended by staff considered by the City Council during the public hearing.
Public Engagement
The City’s two-year financial plan process includes a high degree of public engagement and
input ranging from community surveys, outreach to community groups and organizations, a
Community Forum, and several public hearings before the City Council that commence in
September and end with the adoption of the financial plan in June.
CONCURRENCES
All departments participated in the development of the 2021-23 financial plan and submitted
SOBCs, CIPs and Major City Goal Work Programs to accomplish the City Councils goals and
desired accomplishments.
ENVIRONMENTAL REVIEW
Adoption of a budget is not a project as defined under the California Environmental Quality Act.
FISCAL IMPACT
Budgeted: Yes Budget Years: 2021-23
Funding Identified: Yes
Fiscal Analysis & Fiscal Forecast
In preparing the forecast for “Strategic Budget Direction,” all City departments reviewed and
projected expenditure and revenue budgets for the next two financial plan years. The updated
five-year forecast considers a realistic approach to revenue assumptions, expenditures, required
investments in the City’s Major City Goal Work programs, and an ambitious capital
improvement plan. Additionally, the long-term forecast includes a payments schedule towards
the City’s unfunded liability, funding for a 115 Pension Trust fund, and is fully funding the
reserve requirements.
Full budget detail is found within each fund’s forecast (Attachment A – Sections A, C & G)
Page # 21
Significant Operating Budget Changes (SOBCs)
Table 17:
Total Changes, by Fund 21-22 22-23 Total
1 One-time 3,952,440$ 2,499,783$ 6,452,224$
2 General Fund 3,764,923$ 2,487,918$ 6,252,842$
3 Sewer 57,517$ 11,865$ 69,382$
4 Transit Fund 50,000$ 50,000$
5 Water 80,000$ 80,000$
6 Ongoing 3,787,585$ 4,431,797$ 8,219,382$
7 General Fund 3,571,819$ 4,137,607$ 7,709,426$
8 Parking Fund (199,008)$ (269,775)$ (468,784)$
9 Sewer 252,381$ 413,087$ 665,468$
10 Water 147,321$ 135,232$ 282,553$
11 Whale Rock 15,073$ 15,646$ 30,719$
12 Total 7,740,026$ 6,931,580$ 14,671,606$
Table 18: Transfers into CIP
FUND Transfer Out Transfer In Transfer Out Transfer In
1 General Fund (7,362,916) (7,949,558)
2 LRM (17,866,400) (18,763,050)
3 Capital Outlay 16,003,023 16,967,220
4 Fleet 1,265,000 1,045,000
5 IT Replacement 988,973 564,777
6 Major Facilities Maint 867,500 593,200
7 Infrastructure Investment 5,662,320 7,099,911
8 Public Art Fund 442,500 442,500
21-22 22-23
ALTERNATIVES
The Strategic Budget Direction report provides the Council with budget recommendations based
on the community input and the Council’s strategic planning direction through the major city
goal process. As such, direction should be given to the City Manager for desired changes and
budget reallocations. This guidance will then be incorporated into the preliminary Financial Plan
that will be presented to Council on June 1, 2021.
Attachments:
a - Strategic Budget Direction Report
Page # 22
Page intentionally left
blank.
Strategic Budget Direction
for the
2021‐23 Financial Plan
Council Meeting: April 20, 2021
Table of Contents (Linked)
A: General Fund Long Term Forecast…………. Pg. 3
B: Major City Goals ……………………………………. Pg. 5
C: Ongoing Community Services………………… Pg. 44
D: Local Revenue Measure………………………… Pg. 50
E: Significant Operating Budget Changes …... Pg. 62
F: Capital Improvement Plan ……………………… Pg. 76
G: Enterprise Funds …………………………………… Pg. 98
1 Page # 23
Page intentionally left
blank.
Section A:
General Fund Long-term Forecast
2 Page # 24
Page intentionally left
blank.
Long‐term Forecast Footnotes:
1 ‐ Development review revenue was increased based on historical actuals and expected five‐year forecasted revenue. This revenue is offset by
an increase in expenditures for development review resources in the Planning, Engineering, Building and Housing divisions.
2 ‐ American Rescue Plan Federal Stimulus Funding: San Luis Obispo will receive $8.93 million to counter‐act the far‐reaching effects of the
pandemic on the community’s well‐being. For a jurisdiction such as the City, funding will come through the State which has 60 days to release
the first half with the second 50% being distributed a year later. Jurisdictions have until December 31, 2024 to spend the funding.
3 ‐ FY21 beginning balance includes prior‐period adjustment to audited financials. The insurance fund balance is now included within the General
fund for purposes of financial reporting.
4 ‐ Per Resolution No. 11203, $3,425,000 in undesignated fiscal year 2018‐19 General Fund Balance was allocated towards economic
development and homeless services. $2 million of this funding was assigned to locally invest in short term Certificates of Deposit to generate
interest for a grant program to help offset the cost of a TI permit. One of the recommended SOBCs for the 21‐23 Financial Plan is to utilize
$250,000 of this principal to continue funding the TIPP‐fast permitting program in FY 21‐22. 3 Page # 25
Section B:
Major City Goals
4 Page # 26
Page intentionally left
blank.
STRATEGIC BUDGET DIRECTION – SECTION B
MAJOR CITY GOALS (MCGs)
Included in this section:
Overview – MCG Goal Statements and summary of total investments in MCGs.
MCG Detail ‐ Individual MCG summaries and tasks/actions associated with each goal.
MCG Goal Statements
Economic Recovery, Resiliency & Fiscal Sustainability – Goal Statement
In collaboration with local partners, continue to support economic recovery for all from the COVID
pandemic and support a thriving local economy by supporting local businesses, arts and culture,
downtown vitality, practicing fiscal responsibility, paying down unfunded pension liabilities, and
investing in critical infrastructure
Housing and Homelessness – Goal Statement
To expand housing options for all, continue to facilitate the production of housing, including the
necessary supporting infrastructure, with an emphasis on affordable and workforce housing. Collaborate
with local non‐profit partners and the county, the state, and federal governments to discover and
implement comprehensive and effective strategies to reduce chronic homelessness.
Diversity, Equity, Inclusion (DEI) – Goal Statement
In response to our commitment to making San Luis Obispo a more welcoming and inclusive city for all,
continue to develop programs and policies to support diversity, equity, and inclusion initiatives and
advance the recommendations of the DEI Task Force.
Climate Action, Open Space, and Sustainable Transportation – Goal Statement
To proactively address the climate crisis, continue to update and implement the Climate Action Plan for
carbon neutrality, including preservation and enhancement of open space and the urban forest,
alternative and sustainable transportation, and planning and implementation for resilience.
The following sections go into the detail of each Major City Goal and associated tasks.
Operating Capital
Total
Investment Operating Capital
Total
Investment
1
Climate Action, Open Space, Sustainable
Transportation 870,876$ 14,592,660$ 15,463,536$ 683,202$ 14,397,731$ 15,080,933$
2 DEI 769,130$ 345,000$ 1,114,130$ 841,097$ 95,000$ 936,097$
3 Economic Recovery 9,115,732$ 3,462,500$ 12,578,232$ 8,223,204$ 8,089,500$ 16,312,704$
4 Housing & Homelessness 2,288,961$ 9,090,100$ 11,379,061$ 2,208,550$ 25,105,817$ 27,314,367$
5 Total 13,044,699$ 27,490,260$ 40,534,959$ 11,956,054$ 47,688,048$ 59,644,102$
2021‐22 2022‐23
Table 5: Total Major City Goal Investment
MCG
5 Page # 27
Section B: Major City Goals – Economic Recovery
Goal Statement:
In collaboration with local partners, continue to support economic
recovery for all from the COVID pandemic and support a thriving local
economy by supporting local businesses, arts and culture, downtown
vitality, practicing fiscal responsibility, paying down unfunded pension
liabilities, and investing in critical infrastructure.
Expectations:
The City will engage and expand up on its community partnerships and invest in infrastructure,
promotion, programs, and polices that support the economic and social recovery and resiliency of the
community while ensuring fiscal sustainability. Additional focus will be placed on the retention of
existing businesses, the recovery of arts and culture, the vitality of the downtown, and supporting
underserved groups and populations. Additionally, all actions will be viewed through the lens of the
City’s sustainability and DEI efforts.
Stakeholders/Responsible Departments
For the purposes of MCG administration, monitoring, and reporting, Administration is the lead
department. However, the Economic Recovery, Resiliency & Fiscal Sustainability (ERR&FS) require the
support and engagement from all City departments with special focus provided by Community
Development, Public Works, Parks and Recreation, and the Police Departments. The City will also
continue to engage current partners like the Chamber, Downtown SLO, REACH, SLOMA, SLOREP, Cal
Poly, Cuesta and other existing and new partners to support our efforts.
Strategic Approach
Strategy 1.1: For all members of the Community‐ The language “for all” in the goal statement
ensures that the Economic Development efforts will work in conjunction with the City’s DE&I efforts
to support BIPOC, LGTBQ+ and other under‐served communities as we recover from the pandemic
and build resiliency.
Strategy 1.2: Business Support‐ The City will support the SLO business community through a mix of
traditional and non‐traditional economic development efforts. The efforts will focus on:
a. Creation, Retention, Attraction, Promotion and Programs for new and existing businesses.
b. Planning, Permit, Policy support for recovery and resiliency efforts.
c. Infrastructure investment.
Strategy 1.3: Support Arts and Culture‐ The City will support the recovery of the Arts and Cultural
activities by working with existing and new community partners.
Strategy 1.4: Downtown Vitality‐ In partnership with Downtown SLO, the City will support the
downtown business community through a mix of traditional and non‐traditional economic efforts.
The efforts will focus on:
a. Creation, Retention, Attraction, Promotion and Programs for new and existing businesses,
b. Planning, Permit, Policy support for recovery, resiliency, and downtown vitality,
d. Support for Arts and Culture,
d. Infrastructure investment,
e. Clean and Safe programs.
1. Economic Recovery, Resiliency & Fiscal Sustainability
6 Page # 28
Section B: Major City Goals – Economic Recovery
Within existing
resources*
New Resources
(SOBCs)Capital Within existing
resources*
Resources
(SOBCs) Capital
1.1 For all members of the Community $ 80,000 400,000$ 155,000$
1.2 Business Support $ 2,600,000 $ 1,147,241 2,600,000$ 571,261$
1.3 Arts and Culture Support $ 100,000 $ 50,000 100,000$ 25,000$
1.4 Downtown vitality $ 1,237,364 $ 520,679 3,062,500$ 1,087,364$ 348,600$ 8,089,500$
1.5 Practicing fiscal responsibility $ 76,200 $ 756,048 61,200$ 739,679$
1.6 Paying down unfunded pension liabilities $ 2,500,000 2,500,000$
1.7 Investing in critical infrastructure $ 9,200 $ 39,000 9,200$ 25,900$
SUB TOTAL 6,522,764$ 2,592,968$ 3,462,500$ 6,357,764$ 1,865,440$ 8,089,500$
TOTAL
Total Investment in Economic Recovery, Resiliency & Fiscal Sustainability
21‐22 22‐23
12,578,232$ 16,312,704$
Strategic Approach
* Estimated calculation of current resources or budget that will be used to help advance major city goals (ex: staff hours, overhead, etc.)
Strategy 1.5: Practicing Fiscal Sustainability: The City will continue to focus fiscal sustainability
through all work efforts, programs, and the required budget appropriations. It will review its revenue
sources ongoingly and maximize collection and return on its investments.
Strategy 1.6: Paying down unfunded pension liabilities: The City will work to pay down the unfunded
liabilities and allocate additional annual payment in pursuit of a 20‐year paydown.
Strategy 1.7: Investing in critical infrastructure: The City will invest in critical infrastructure based on
the approved 2021‐23 CIP or as otherwise directed by the City Council. Projects that 1) facilitate
economic recovery, 2) enhance safety, resilience, fire prevention, 3) address past commitments
(previously budget, approved planning documents), 4) are partnership projects with a significant
portion of the cost covered by private development, 5) address existing core infrastructure
maintenance needs and 6) provide positive impact towards climate change goals and/or Diversity
Equity and Inclusions needs that will be prioritized for inclusion and Council’s consideration in the
2021‐23 CIP.
7 Page # 29
Capital
Expense Expense Expense Expense
1.1 For all members of the Community
1.1 a. Establish a process for the City to recognize and promote Minority-owned businesses.No
1.1 b. Implement protocols within the City’s Office of Economic Development to reach out to
existing and new Minority-owned/operated businesses to learn of their experiences
operating in SLO, and to identify ways the City can be of support.No
1.1 c. Evaluate and potentially establish a City Leadership/Chamber of Commerce / Minority
Business Owners’ roundtable.No
1.1
d. Research, explore and potentially utilize innovative practices such as micro-loans,
targeted-sector recruiting and promotion, City facilitated lending, grants, private support
and crowdfunding to support businesses owned by or serving
underserved/underrepresented communities. The City will also leverage its partner
network, including the Chamber, Downtown SLO, REACH and others to support the DEI
initiatives as they relate to economic development including creation, retention and
attraction efforts. EXPENSE IS LISTED IN DEI Yes -$
1.1
e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved
communities on the City's Doing Business section of the website.
No
1.1
f. Establish an internal working group to research methods to support local contractors,
local vendors and labor through workforce agreements, local purchasing requirements,
alternative project delivery methods and other options to support local businesses and
employees. No
1.1
g. Develop and implement a scorecard to track visitation to key areas of the City,
employment, DEI economic efforts and other relevant economic indicators.
Yes 30,000$ 30,000$
1.1 h. Update the City's Economic Development Strategic plan Yes 100,000$
1.1 i. Review the Economic Development program structure based on the outcome of the
EDSP update. No
1.1 j. Ensure adequate temporary and flex resources available to develop and execute
required initiatives. Yes 50,000$ 25,000$
1.1 h. Legal Support No
1.1 h. Legal Support SOBC Yes
1.1 k. Downtown safety enhancements - bollards No 400,000$ -$
1.2 Business Support (a. Creation, Retention, Attraction, Promotion and Programs, b. Planning,
Policy, Permitting, c. Infrastructure)
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital Operating
Funded through SOBC
2022-23
Economic Recovery
Task/ Action
8 Page # 30
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital Operating
Funded through SOBC
2022-23
Economic Recovery
Task/ Action
1.2
a-1. Set aside funding for activations, promotions and programs like "Light Up
Downtown", "Buy Local Bonus", Shop local to aid in the recovery from the impacts of
COVID-19 through out the City and including downtown. Yes 500,000$ $250,000
1.2
a-2. Elevate the promotion and branding of the Economic Development activities of the
City highlighting the efforts around Sustainability and DE&I through the website, videos
and other collateral. ($60k communications support for Administration)
Yes 140,000$ $60,000
1.2
a-3. Continue to work with our partners at the Chamber, REACH, Cal Poly, Downtown SLO,
SCORE and others to support the business community through retention, creation,
attraction, education and communication efforts. No 50,000$ 50,000$
1.2
a-4. Work with REACH and other partners to offset the loss of the Diablo Canyon Nuclear
Power plant through business attraction, H-o- H job creation and other relevant efforts.
No
1.2 a-5. Evaluate the continuation and/or modification of the Open Slo program Fitness in the
Parks.No NA NA
1.2
a-6. Review transitioning the Business Ambassador program from a COVID response action
to an ongoing program with an available hotline as well as an online form option.
No
1.2 a-7. Continue to promote the City to tourists, visitors and locals through the efforts of the
TBID and the PCC. No 1,550,000$ 1,550,000$
1.2 a-8. Provide childcare programming to the community to enable residents to work and fuel
the local economy.No 1,000,000$ 1,000,000$
1.2
b-1. Continue to implement the TIPP-FAST program to fast track tenant improvement
permits and support business recovery. Incorporate subsidies into program when funding
is available.Yes 250,000$
1.2
b-3. Develop a streamlined and easy to understand process for businesses to allow
activities encouraged by Outdoor SLO, and other programs implemented in response to
Covid-19, to continue - especially in relation to outdoor dining.
No
1.2
b-4. Improve efficiency and transparency in the permitting process through
implementation of paperless permitting, performance management reporting, and
enhanced customer transparency tools.Yes 46,528$ $39,234.05
1.2
b-5. Review and establish policies as required to support broadband to the home to take
advantage of the opportunities to work from home to support the Climate Action Plan and
Quality of life. No
9 Page # 31
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital Operating
Funded through SOBC
2022-23
Economic Recovery
Task/ Action
1.2
b-d. Staff Resources to improve permitting efficiency and support development services
program capacity
Yes 210,713$ 222,027$
1.2
c-1. Ensure the business community is updated and aware of major City projects (CIP and
others) that will impact their operations. Coordinate with business adjusting working
hours and construction impacts to reduce impacts.
No
1.2
c-2. Set aside funding for the potential to expand the various Open Slo programs (Parklets,
Street closures) to other areas of the City to support busines recovery.
No
1.2 c-3. Legal Support No
1.2 c-4. Legal Support SOBC Yes
1.3 Arts and Culture Support
1.3 a. Support the recovery of Arts and Cultural activities throughout the City.
No
1.3 b. Support the recovery of Arts , Culture and Community programs through a PCC program
similar to GIA. Yes 50,000$ 25,000$
1.3 c. Continue to support local community non-profit organzations through the Cultural GIA
program facilitated by the PCC. No 100,000$ 100,000$
1.3 1.3 Legal Support
No
1.3 1.3 Legal Support SOBC Yes
1.4 Downtown vitality (a. Promotion and Programs b. Planning, Policy, Permitting c. Arts and
Culture d. Infrastructure e. Clean and Safe)
1.4 a-1. Continue to partner with Downtown SLO to ensure the recovery and growth, and
vitality of the Downtown. No 245,000$ 245,000$
1.4
a-2. Support Downtown SLO in expanding the Holiday "Light up Downtown" program and
incentivize private participation through a matching program.(For example $100K base
with $ for $ match on $50K)
Yes 150,000$ 150,000$
1.4
a-3. Continue the work of the Vacancy and Vibrancy Task force in cooperation with
Downtown SLO with a focus on a activating and re-leasing vacant store fronts.
No
10 Page # 32
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital Operating
Funded through SOBC
2022-23
Economic Recovery
Task/ Action
1.4
a-4. Review, evaluate and execute on the outcomes from the Downtown Future Forum
ensuring the required public participation and Council approval as needed.
No
1.4
a-5. Continue to enhance and modify the Open SLO program "Downtown Dining" within
Mission Plaza as needed to contribute to downtown vitality.
Yes 13,687$ 27,375$
1.4 a-6. Support the restart of the various Downtown SLO activations like Farmers, Concerts in
the Plaza and the Holiday Parade. No
1.4 a-7. Continue to promote the Downtown to tourists, visitors and locals through the efforts
of the TBID and the PCC. No
1.4
b-1. Update the Zoning Regulations to allow for more flexible administration of allowed
uses, especially downtown, to support desired pop-up, shared-resource and new business
model approaches to facilitate business opportunities in the community.
Yes 75,000$
1.4
b-2. Update the Zoning Regulations to allow for more flexible administration of allowed
uses, especially downtown, to support desired pop-up, shared-resource and new business
model approaches to facilitate business opportunities in the community.
Yes 50,000$
1.4 c-1. Support Arts and Culture in the downtown while ensuring appropriate efforts are
made to support DEI through available programs.200,000$
1.4 c-2. Support the recovery of Arts and Cultural activities by working with new and existing
community partners.142,500$ 142,500$
1.4
c-3. Activation of public spaces in downtown through events and programming such as pop
up activities and temporary public art that celebrates the proliferation of public art.
1.4 c-4. Explore options of creative placemaking and temporary public art in the downtown i.e.
adjacent to Bubblegum Alley and Rose Alley.
1.4 c-5. Support creation and partnership of a Downtown Mural Program with Downtown SLO
and SLOMA.
1.4 d-1. Develop and present a long term plan for the initiatives started under the Open SLO
like parklets and street closures in the downtown. No
1.4 d-2. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza
Concept Plan and Council Direction.No 150,000$ 1,035,000$
1.4 d-3. Construct the new Palm/Nipomo structure in coordination with SLO REP theatre.850,000$ 5,582,000$
1.4 d-4. Continue with the City banner program.100,000$ 25,000$
11 Page # 33
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital Operating
Funded through SOBC
2022-23
Economic Recovery
Task/ Action
1.4 d-5. Establish and implement a plan to make the Zig Zag lights permanent in the current
locations as well as other locations in the downtown.No 250,000$
1.4
d-6. Ensure the downtown business community is updated and aware of major City
projects (CIP and others) that will impact their operations and set aside funding to
minimize the impacts where possible.
1.4 d-7. Investigate opportunities to develop a Downtown Wi-Fi Mesh.No -$ -$ -$ -$
1.4 d-8. Expansion to gateless parking structure to improve the customer access and
experience when visiting downtown.No 40,000$ 90,000$
1.4 d-9. Assist with the continuation of Open SLO parklets and courtesy curbside pick up
locations No 350,000$ 200,000$ 350,000$
1.4
d-10. Expansion of enforcement to ensure on-street, off-street, and residential compliance
and safety and to improve overnight safety in the parking structures
Yes (199,008)$ (269,775)$
1.4 d-11. Expansion of maintenance to ensure parking structures and adjoining areas remain
safe, clean and orderly (see above for fiscal impact)Yes
1.4 d-12. Parking structure maintenance at 842 Palm, 871 Palm, and 919 Palm.
No 900,000$ 900,000$
1.4 d-13. City Hall lighting
No -$ 15,000$
1.4 e-1. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors
and homelessness support. No 66,000$ 66,000$
1.4
e-2. Continue to enhance downtown cleanliness through daily sidewalk scrubbing, street
sweeping and trash clean up and the improvement of the existing creek walk.
Yes 430,000$ 440,000$
1.4 e-3. Continue to provide public safety presence in the downtown. Includes costs of
Downtown Bike Patrol, Sergeant, and Officers)no 426,364$ 426,364$
1.4
e-4. The Police department will develop an educational program, which will include in-
person presentations for business owners (including visitor serving) to know how to deal
with situations requiring public safety support. Costs are associated with materials.
Yes 1,000$ 1,000$
1.4
e-5. Develop a CAT staffing plan with a second social worker, to ensure public safety and
social service resources in both the downtown and creek area. FUNDING LISTED IN
HOMELESSNESS MCG Yes
1.4 e-6. Evaluate a plan to reestablish a downtown sub station for public safety. (Potential of
adding to Mission Plaza Project)No
12 Page # 34
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital Operating
Funded through SOBC
2022-23
Economic Recovery
Task/ Action
1.4
e-7. Track hours worked (regular and overtime hours) by the downtown sergeant and
downtown officers and tracking crime statistics.
No
1.4
Project: Roudabout Publis Art Installations
No 300,000$ 300,000$
1.4
Project: Mission Plaza Railing Replacement
No 80,000$
1.4 Legal Support No
1.4 Legal Support SOBC Yes
1.5 Practicing fiscal responsibility
1.5 a. Practicing fiscal responsibility: The City will continue to focus fiscal sustainability through
all work efforts, programs, and the required budget appropriations. It will review its
revenue sources ongoingly and maximize collection and return on its investments. No
1.5
b. Staff Resources: Continued enhancements to the Oracle Cloud system through the
MOTION program to increase efficiencies and overall effectiveness of the system.
Additionally help maintain the City's accounting and financial information.Yes 674,879$ $700,810
1.5 c. Negotiate successor agreements with employee groups in alignment with Council
adopted Labor Relations Objectives.No 21,200$ 21,200$
1.5 c. Negotiate successor agreements with employee groups in alignment with Council
adopted Labor Relations Objectives.No 10,000$ 10,000$
1.5 d. Complete benchmark compensation survey for SLOCEA, Management, and Confidentials
groups.Yes 30,000$
1.5 d. Complete benchmark compensation survey for SLOCEA, Management, and Confidentials
groups.No 15,000$
1.5 e. Continue to monitor and reduce liability and workers’ compensation claims through
actions aimed at reducing liability and workers’ compensation costs. No 30,000$ 30,000$
1.5 f. Injury Reduction Programs, Compliance Software, Onboarding Software, and
transitioning to electronic files Yes 51,169$ 38,869$
1.5 1.5 Legal Support No
1.5 1.5 Legal Support SOBC Yes
1.6 Paying down unfunded pension liabilities
13 Page # 35
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital Operating
Funded through SOBC
2022-23
Economic Recovery
Task/ Action
1.6
Paying down unfunded pension liabilities (includes all funds): The City will work to pay
down the unfunded liabilities and allocate additional annual payment in pursuit of a 20-
year paydown. No 2,500,000$ 2,500,000$
1.6 1.6 Legal Support No
1.6 1.6 Legal Support SOBC Yes
1.7 Investing in critical infrastructure
1.7
a. Investing in critical infrastructure: The City will invest in critical infrastructure based on
the approved 2021-23 CIP or as otherwise directed by the City Council. Projects that 1)
facilitate economic recovery, 2) enhance safety, resilience, fire prevention, 3) address past
commitments (previously budget, approved planning documents), 4) are partnership
projects with a significant portion of the cost covered by private development, 5) address
existing core infrastructure maintenance needs and 6) provide positive impact towards
climate change goals and/or Diversity Equity and Inclusions needs will be prioritized for
inclusion and Council’s consideration in the 2021-23 CIP. 9,200$ 9,200$
1.7 b. Administrative Costs Associated with Investment in CIP Yes 39,000$ 25,900$
1.7 1.7 Legal Support No
1.7 1.7 Legal Support SOBC Yes
Total 9,115,732$ 3,462,500$ 8,223,204$ 8,089,500$
Total Cost Per Fiscal Year $ 12,578,232 16,312,704$
14 Page # 36
Section B: Major City Goals ‐ DEI
Goal Statement:
In response to our commitment to making San Luis Obispo a more
welcoming and inclusive city for all, continue to develop programs and
policies to support diversity, equity, and inclusion initiatives and advance
the recommendations of the DEI Task Force.
Expectations:
The City will engage in initiatives that advance DEI within the organization and community:
1. Develop and implement strategies, programs and policies that build a workplace culture and
community of inclusion, fairness and belonging for all.
2. Involve marginalized communities and diverse voices in program development and delivery to
ensure current lived experiences are understood, priorities are addressed, and the City’s
efforts are relevant and meaningful.
3. Partner with proven community providers and utilize best practice models to leverage City
resources and maximize effectiveness and impact of initiatives.
4. Identify and track measurable results as the City progresses in maturing diversity and
inclusion efforts.
Stakeholders/Responsible Departments
Administration, Human Resources, Police Dept, Parks & Recreation, Public Works.
All Departments share responsibility for supporting and prioritizing DEI initiatives to advance the
City’s strategies, ambition, and goal.
Strategic Approach
Strategy 2.1 – Establish Office of DEI
The Office of DEI is the City’s forward‐facing commitment to meaningful, structural, and lasting
change. It will create and establish activities, outreach, programs, policies, and structures to advance
equity and inclusion, cultural and systemic anti‐racism, and cultural competence within the
organization and throughout the community. It will strengthen relationships with marginalized
communities and their leaders, manage the City’s comprehensive approach to improving community‐
based and internal DEI initiatives, and support departments in embedding DEI in all practices,
policies, processes throughout the organization.
Strategy 2.2 – Develop & Implement DEI Strategic Plan
Create a strategic plan for a comprehensive DEI Initiative. Include assessments of City policies,
practices, environments, community need, priorities, and available resources. Utilize DEI Task Force
Recommendations, and Internal D&E Audit as a foundation, and the Cal Poly Experience report and
other documents as reference and for benchmarking. Subsequent project and implementation plans
will include qualitative and quantitative metrics to measure impact of DEI projects and overall DEI
initiative. implementation of prioritized programs and projects will be scoped as resources allow.
Strategy 2.3 – Workforce Recruitment & Retention
Develop and implement proven strategies, programs, and policies that successfully attract, engage,
retain, and develop a diverse workforce. Emphasize the development of internal candidates, broaden
2. Diversity, Equity, Inclusion
15 Page # 37
Section B: Major City Goals ‐ DEI
outreach & advertising, and eliminating screening and selection bias to recruit and hire a more
diverse pool of candidates.
Strategy 2.4 – Inclusive & Equitable Workplace
Continue to develop an environment where all employees feel valued and included. Focus on
providing DEI training and professional development, building interpersonal connections,
improving/increasing communications, integrating DEI into every department’s operations and daily
practices, and growing interest in DEI among all employees.
Strategy 2.5 – Community‐based Policing and Restorative Practices
To align with national trends and best practices, identify strategies for alternative methods to policing
in the City, and increase the ability for social service providers to support in situations where police
are currently serving as both responders and providers. Maintain cultural competency training for
officers. Seek opportunities to increase understanding, strengthen relationships, and intentionally
center the needs of the BIPOC community.
Strategy 2.6 – Cal Poly & Cuesta College Partnerships
Increase shared training, programs, community‐building resources, and collaborative planning to
increase access and enhance belonging for all City residents. Partner with campus programming to
present educational and cultural events to the community at large. Convene regular roundtables with
City, Cal Poly, Cuesta College leadership and students.
Strategy 2.7 – Access, Inclusion, Support for Underrepresented Communities
Revise and expand the City’s existing practices and programs, and support development of leadership
and internship opportunities ‐ especially for youth, BIPOC and LGBTQ+ residents ‐ to increase
understanding, access, and participation in local government. This seeks to increase and diversify the
community members who understand, navigate, feel connected to, and actively participate in the
systems essential to creating meaningful improvements in the City. Sponsor public art and cultural
activities that center the history, experiences, and contributions of the City’s historically marginalized
populations. Increase understanding of the needs and ways to support undocumented residents;
enlist efforts to ensure they know they are eligible for and how to receive City services.
Strategy 2.8 – Community Education & Programming
Partner with DEI experts and providers to expand ongoing awareness and educational programs and
forums. Topics such as how to be anti‐racist, increasing intercultural competence, understanding
unconscious bias, and convening listening and learning sessions may be offered.
Strategy 2.9 – Support & Attract Minority‐Owned Businesses
Focus efforts to support and promote existing minority‐owned businesses and attract new
businesses. Develop outreach and recognition programs. Recognize other businesses that are actively
engaged in advancing DEI and those that demonstrate support of minority‐owned businesses.
16 Page # 38
Section B: Major City Goals ‐ DEI
Within existing
resources*
New Resources
(SOBCs) Capital
Within existing
resources*
Resources
(SOBCs) Capital
2.1 Establish Office of DEI $ 220,039 239,340$
2.2 Develop & Implement DEI Strategic Plan $ 40,000 15,000$
2.3 Workforce Recruitment & Retention $ 13,000 $ 101,691 18,000$ 43,257$
2.4 Inclusive & Equitable Workplace $ 6,500 $ 20,000 25,000$ 4,500$ 20,000$ 75,000$
2.5
Community‐based Policing and Restorative
Practices $ 10,000 $ 15,400 10,000$
2.6 Cal Poly & Cuesta Partnerships
2.7
Access, Inclusion, Support for
Underrepresented Communities $ 151,000 $ 186,500 320,000$ 158,500$ 172,500$ 20,000$
2.8 Community Education & Programming $ 5,000 10,000$
2.9 Support & Attract Minority‐Owned Businesses 150,000$
SUB TOTAL $ 180,500 $ 588,630 $ 345,000 191,000$ 650,097$ 95,000$
TOTAL 1,114,130$ 936,097$
Total Investment in Diversity, Equity & Inclusion
Strategic Approach
21‐22 22‐23
* Estimated calculation of current resources or budget that will be used to help advance major city goals (ex: staff hours, overhead, etc.)
17 Page # 39
Capital
Expense Expense Expense Expense
2.1 Establish Office of DEI
2.1 a. Design DEI Administration, Function, and Operations of the Office No
2.1 b. Develop DEI Base Operating Budget Yes 20,000$ 5,000$
2.1 c. Identify and secure office space (2000/mo @ 7 mos Y1, 12 mos Y2)Yes $14,000 24,000$
2.1 d.Develop positions; Hire Staff No
2.1 e. Hire Diversity position - 1.0 FTE Yes $111,898 115,995$
2.1 f. Hire -DEI Administrative Support - .5 FTE Yes $30,555 34,158$
2.1 g. Hire CivicSparks Fellow - Y2 - .75 FTE Yes 30,000$
2.1
h. Hire Interns - Cal Poly, Cuesta, community candidates - .25 FTE - 2 positions Y1
@ midyear / 2 - Y2, full year Yes $13,586 15,187$
2.1 i. Consultant - DEI SME - 360 total hours Yes 30,000$ 15,000$
2.1
j.Create and establish formal and informal activities, outreach, programs, policies,
structures to advance equity and inclusion, cultural and systemic anti-racism, and
cultural competence in the organization and community, and support
underrepresented communities No
2.1
k.Implementation of prioritized activities – internal and community-based
No
2.1 l. Support DEI efforts throughout each department No
2.1 m. Coordinate activities of the DEI Employee Committee No
2.1 n. Community-based outreach, education, programming No
2.1 o. DEI High Impact and GIA grant administration and management No
2.1 p. Cal Poly & Cuesta collaborations No
2.1 q. Support the HRC No
2.1 2.1 Legal Support No
2.1 2.1 Legal Support SOBC Yes
2.2 Develop & Implement DEI Strategic Plan
2.2
a. Conduct needs, priority, and resource assessments. Create comprehensive DEI
initiatives and programming for the organization and community.
Yes 35,000$
2.2
b. Utilize DEI Task Force Recommendations, Internal D&E Audit as foundation; Cal
Poly Experience report and other documents as reference and for benchmarking
No
2.2 c. Present comprehensive plan to City Council for Adoption No
PROGRAMS/PROJECTS
2022-23Diversity, Equity, Inclusion
Task/Action
Strategic
Approach #
Funded through
SOBC
2021-22
Operating Capital Operating
18 Page # 40
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
2022-23Diversity, Equity, Inclusion
Task/Action
Strategic
Approach #
Funded through
SOBC
2021-22
Operating Capital Operating
2.2
d. Create project designs and implementation plans. Identify applicable qualitative
and quantitative metrics to measure impact of DEI projects and overall DEI
program No
2.2
e. Begin implementation of prioritized programs and projects; scoped as resources
allow. To be determined through Strategic Planning process.
Yes 5,000$ 15,000$
2.2 2.2 Legal Support No
2.2 2.2 Legal Support SOBC Yes
2.3 Workforce Recruitment & Retention
2.3 a.Improve DEI-Focused Recruitment, Screening, Hiring Practices No
2.3
b. Improve DEI-focused language in job descriptions, announcements and other
recruitment materials. Identify gaps and opportunities to increase inclusivity in
materials. - supported by consultant, 2.1.4.g No 4,000$ 4,000$
2.3
c. Provide DEI-focused screening and interviewing training to personnel and panels
- supported by consultant, 2.1.4.g No 4,000$ 4,000$
2.3
d. Implement applicable recommendations from Internal Audit, as well as other
industry best practices. Continue to ensure final selection guidelines are consistent
with DEI best practices No 5,000$ 5,000$
2.3 e. Conduct Pay Equity Audit Yes 30,000$
2.3 f. Conduct Pay Equity Audit No 5,000$
2.3 g. Examine Policies and Programs to Support for Primary Caretakers No
2.3
h. Review, evaluate and implement findings of SLO County Child Care Study (First
5’s analysis) of childcare for working families, as applicable; 22-23 Supplemental
Plan as resources permit.No
2.3
i. Continue communicating childcare options and resources for City employees;
additional to First 5 findings. Explore flex schedules, job share, remote options, etc.No
2.3 j. Expanded Recruitment Services Expenses to Augment HR Yes 20,000$ 20,000$
2.3
k. Fire: Recruit Academy Support and Intern Program - enhance DEI recruitment
efforts Yes 51,691$ 23,257$
2.3 2.3 Legal Support No
2.3 2.3 Legal Support SOBC Yes
2.4 Inclusive & Equitable Workplace
19 Page # 41
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
2022-23Diversity, Equity, Inclusion
Task/Action
Strategic
Approach #
Funded through
SOBC
2021-22
Operating Capital Operating
2.4 a. Develop and Adopt Diversity Statement for the Organization No
2.4
b. Assist Departments in infusing DEI into their programs, policies, and practices in
relevant and practical ways No
2.4
c. . Further develop purpose, role, activities and enhance impact of DEI Employee
Committee – (e.g. ERGs, cultural celebrations, activity budget, speakers, self-study
materials, public web pages)Yes 5,000$ 5,000$
2.4
d. Grant equal standing and priority to the tasks and responsibilities periodically
assigned to DEI committee members as is given to their other duties
2.4 e. DEI-related Staff Development / Training Yes 15,000$ 15,000$
2.4 f. Implement a DEI module in new hire onboarding No 2,000$
2.4
g. Provide training and other learning opportunities for all levels. E.g. inclusive
leadership, cultural competency, assessments, speakers, self-study, etc.
No
2.4
h. Continue Clarity Collective training as foundation training - ASSIGNED /
RESOURCED TO HR No 4,500$ 4,500$
2.4
i. Training for Council, Commission, Advisory Board – tailored for roles, Brown Act,
etc.No
2.4
j. Complete a planning study for gender-inclusive restroom and sleeping facilities
for Fire Stations 3 and 4. Proceed with design work pending results of study.
No 25,000$ 75,000$
2.4 2.4 Legal Support No
2.4 2.4 Legal Support SOBC Yes
2.5 Community-based Policing and Restorative Practices
2.5 a. Implement After Action Report recommendations No
2.5
b. Review and implement Governor’s recommendations regarding protests when
issued No
2.5
c. Implement federal government changes in law enforcement. Implement RIPA
Spillman Module: the Racial and Identity Profiling Act (RIPA) was formed as part of
AB953. California law enforcement agencies will be required to collect data for
stops made by law enforcement personnel. Annual reporting to DOJ is a
requirement. Yes 15,400$
20 Page # 42
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
2022-23Diversity, Equity, Inclusion
Task/Action
Strategic
Approach #
Funded through
SOBC
2021-22
Operating Capital Operating
2.5 d. Continue to focus on de-escalation and diversity training No 10,000$ 10,000$
2.5
e. Review new Police Station building program and budget for opportunities to
reduce costs to preserve resources for community service investments
No
2.5 2.5 Legal Support No
2.5 2.5 Legal Support SOBC Yes
2.6 Cal Poly & Cuesta Partnerships
2.6 a. Solidify relationships and collaborations No
2.6 b. CP Office of University Diversity and Inclusion (OUDI) and City DEI Office/City
Manager Leadership quarterly planning meetings No
2.6 c. Host City / Cal Poly Office of Student Diversity & Belonging quarterly roundtable
(City & CP leadership, DEI committee, HRC, Cal Poly students, DEI leaders, etc.) - re
community / student experience, relationship-building
No
2.6
d. Utilize Faculty Fellow assigned to Office of DEI in partnership with CP OUDI to
research best practices, grants for internships, programs, outreach, innovative
practices, etc. – seeking sponsorship from Cal Poly No
2.6 e. Explore opportunities and build collaborations with Cuesta College No
2.6
f. Provide City facilities as available to campus DEI programs delivered to and in the
community No
2.6 g.Utilize interns from Cal Poly and Cuesta within the Office of DEI No
2.6 2.6 Legal Support No
2.6 2.6 Legal Support SOBC Yes
2.7 Access, Inclusion, Support for Underrepresented Communities
2.7 a.High Impact DEI Grants Yes 150,000$ 150,000$
2.7 b. GIA Grants No 150,000$ 150,000$
2.7
c. HRC Operating Budget for enhanced presence, advocacy, community building,
etc. (such as awareness campaigns, access/fairness efforts, citizen award, etc.).
Activities TBD Yes 3,000$ 5,000$
2.7
e. Support feasibility study for Multicultural Center; provide City liaison/staff
support No
2.7 f. Contribute to planning / feasibility study Yes 2,500$ 2,500$
21 Page # 43
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
2022-23Diversity, Equity, Inclusion
Task/Action
Strategic
Approach #
Funded through
SOBC
2021-22
Operating Capital Operating
2.7
g. Update City's formal Public Engagement & Noticing (PEN) procedures as well as
other public outreach, input efforts to increase diverse participation. Develop
tactics and cost to implement Yes 15,000$
2.7
h. City 101 / Community Academy to increase understanding / access /
participation in City government Yes 15,000$ 15,000$
2.7
i. City 101 – first stage, short program, easy access/commitment. Overview of City,
how to access, ways to be involved. Extensive outreach to Underrepresented
minorities, community-based sessions. Design, pilot Y1
No
2.7
j. Community Academy – second stage, longer program. Partner with Chamber,
others. Test demand, develop. Pilot Y2 No
2.7
a. Develop “Undocu-Friendly” logo for City documents, as allowable by law
No 1,000$ 1,000$
2.7 k. Develop “Undocu-Friendly” logo for City documents, as allowable by law Yes 1,000$ -$
2.7
l. BIPOC youth artists' public art project. Feature work that provides a fuller
representation of all communities. Artists are stipended. Pilot in Y2 - ASSIGNED &
RESOURCED TO P&R No 7,500$
2.7
d-14. Park major maintenance and repairs specific to Cheng Park improvements
and Mission Plaza railing improvements. No 300,000$ -$
2.7
Parks Major Maintenance - ADA Transition Plan Implementation
20,000$ 20,000$
2.7 2.7 Legal Support No
2.7 2.7 Legal Support SOBC Yes
2.8 Community Awareness & Education
2.8
Trainings, workshops, speakers, forums, townhalls, listening sessions, outreach,
etc. for youth, marginalized communities and community-at-large [in addition to
CP's programming]Yes 5,000$ 10,000$
2.8
a. Utilize proven providers rather than City develop program. City serves as
coordinator, sponsor, convener, etc. No
2.8
b. Determined by interest, guidance by BIPOC, other URMs, DEI committee, HRC +
public input, etc. No
2.8 2.8 Legal Support No
22 Page # 44
Capital
Expense Expense Expense Expense
PROGRAMS/PROJECTS
2022-23Diversity, Equity, Inclusion
Task/Action
Strategic
Approach #
Funded through
SOBC
2021-22
Operating Capital Operating
2.8 2.8 Legal Support SOBC Yes
2.9 Support & Attract Minority-Owned Businesses – ASSIGNED & RESOURCED BY MCG
ERRS - SEE THAT WORK PROGRAM
2.9
a.Establish a process for the City to recognize and promote Minority-owned
businesses No
2.9
b.Implement protocols within the City’s Office of Economic Development to reach
out to all existing and new Minority-owned/operated businesses to learn of their
experiences operating in SLO, and to identify ways the City can be of support.
No
2.9
c.Establish a City Leadership/Chamber of Commerce / Minority Business Owners’
roundtable.No
2.9
d. Research, explore and potentially utilize innovative practices such as micro-
loans, targeted-sector recruiting and promotion, City-facilitated lending, grants,
private support and crowdfunding to support underserved/underrepresented
communities. Leverage City's partner network, including the Chamber, Downtown
SLO, REACH and others to support the DEI initiatives as they relate to economic
development including creation, retention and attraction efforts.
Yes 150,000$
2.9
e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other
underserved communities on the City's Doing Business section of the website.
No
2.9
f. Establish a process for the City to recognize and promote Minority-owned
businesses No
2.9 2.9 Legal Support No
2.9 2.9 Legal Support SOBC Yes
Total 769,130$ 345,000$ 841,097$ 95,000$
Total Cost Per Fiscal Year $ 1,114,130 936,097$
23 Page # 45
Section B: Major City Goals – Housing & Homelessness
Goal Statement:
In order to expand housing options for all, continue to facilitate the production of
housing, including the necessary supporting infrastructure, with an emphasis on
affordable and workforce housing. Collaborate with local non‐profit partners and
the county, the state, and federal governments to discover and implement
comprehensive and effective strategies to reduce chronic homelessness.
Expectations:
The City will prioritize new and ongoing Housing Element policies and programs that focus on facilitating the
increased production of affordable and workforce housing, in addition to market rate housing; and the City will
engage with the community, regional agencies, local non‐profit partners, and the Federal government to
leverage resources to be utilized to implement strategies that reduce homelessness.
Housing
1. Implement the Housing Element by continuing ongoing programs and by completing new programs such as
achieving more “by right” non‐discretionary review with Objective Design Standards, update of the
Inclusionary Housing Ordinance, and by establishing a Flexible Density program and “Missing Middle” housing
program to expand housing opportunities downtown and in single‐family neighborhoods.
2. Update the City’s Inclusionary Housing Ordinance.
3. Utilize a consultant to optimize management of the City’s substantial Below Market Rate (BMR) Housing
portfolio.
4. Manage HRC Grants‐in‐Aid (GIA), CDBG, the Affordable Housing Fund, and conduct effective grant research,
application, and implementation.
5. Provide ongoing advisory body, council support, and outreach and support the transition of the Human
Relations Commission (HRC) to the Office of Diversity, Equity and Inclusion.
Homelessness
6. Enhance City Homeless Team coordination among various key staff from City Departments and develop a
strategic plan to guide City actions.
7. Improve environmental protection and water quality with cleanups of creeks, open spaces, public spaces,
and parks.
8. Initiate and participate in regional collaboration efforts and seek out grant opportunities to support regional
solutions to reduce chronic homelessness.
9. Expand the Community Action Team (CAT) to support public safety and community member access to
critical homeless services.
10. Lead by example with the implementation of a Mobile Crisis Unit (MCU) to support the chronically
homeless population, which can be adopted by other agencies and scaled up to meet the regional need.
11.The City will continue and work to expand its support for funding of non‐profit social service providers that
specialize in services to help people transition into housing.
3. Housing and Homelessness
24 Page # 46
Section B: Major City Goals – Housing & Homelessness
Stakeholders/Responsible Departments
For the purposes of MCG implementation, administration, monitoring, and reporting, Community
Development is the lead department. However, several of the tasks outlined in the MCG will include the
participation of the following City Departments: Administration, City Attorney, Police, Public Works, Parks and
Recreation, and Fire.
The City will also engage with the following stakeholders to support Housing and Homelessness efforts
including, but not limited to:
1. Residents
2. Homeless individuals and families
3. Homeless advocates
4. Business/Property Owners
5. Chamber of Commerce
6. Economic Vitality Corporation (EVC)
7. Social service agencies
8. San Luis Obispo County Housing Trust Fund
(HTF)
9. Affordable housing and market rate
developers
10. Non‐profit organizations
11. Owners and renters of affordable housing in the
City
12. Homeless Services Oversight Council (HSOC)
13. County of San Luis Obispo Administration,
Behavioral Health, and other key regional
partners
14. Mid and Large‐Scale Employers
Strategic Approach
Housing
Strategy 3.1 ‐ Implement the Housing Element
The City will be implementing the recently adopted 6th cycle Housing Element (HE), which consists of key
policies and programs intended to incentivize and make feasible a range of housing options with an emphasis
on affordable and workforce housing types.
Strategy 3.2 ‐ Implement Inclusionary Housing Ordinance
Continue internal coordination procedures ensuring development applications include a clear and complete
inclusionary housing proposal consistent with the Inclusionary Housing Ordinance. This review process would
include a formal application routing to the Housing Policy and Programs section of the Planning Division during
application completeness review. This review will allow housing staff to verify Inclusionary Housing Ordinance
compliance while also allowing the opportunity to negotiate for more affordability in development projects
through the application of available alternatives and incentives.
Strategy 3.3 ‐ Below Market Rate Portfolio Management
This is a service contract with a qualified consultant that has expertise in the area of management and
administration of the City's Inclusionary Housing Inventory, including ownership units, rental units and project
financing. The contract would include updating program materials, tracking and reporting of program
activities, monitoring, income qualifications, and underwriting applicants for new loans (first‐time homebuyer,
long‐term affordable, and equity‐share programs), including title and escrow services.
Strategy 3.4 ‐ Financial Management
This effort includes the ongoing program administration and management of federal, state and local grants
including: 1) Community Development Block Grant (CDBG); 2) Grants‐In‐Aid (GIA); and 3) Affordable Housing
Fund (AHF). In addition to ongoing grants, the City is the recipient of the following one‐time grants that
support Housing & Safety Element updates and program implementation: 1) SB2 grant in the amount of
$160,000 to fund the Flexible Density Program; 2) LEAP grant in the amount of $150,000 to fund the Housing
Element Update; 3) REAP grant in the amount of $283,003 to fund the Inclusionary Housing Ordinance Update
and Objective Design Standards; and 4) Sustainable Communities grant in the amount of $435,000 to fund the
Safety Element Update.
25 Page # 47
Section B: Major City Goals – Housing & Homelessness
Strategy 3.5 ‐ Advisory Body & Council meetings & support
Staff will continue to provide updates on legislation and state laws related to housing policies pertinent to City
operations, including workforce and affordable housing, and will continue to provide public information
related to ongoing City efforts to implement Housing Element policies and programs. Updates will be provided
to advisory bodies regarding overall housing policy context, and to provide updates in state law and City
policies that inform decisions and recommendations under their purview. This effort will improve advisory
body participation in various implementation strategies described in the overall Housing and Homelessness
Major City Goal, and in ongoing review of individual projects and community discussions surrounding these
topics.
Homelessness
Strategy 3.6 ‐ City Homelessness Team Coordination (Homelessness Response Manager)
Coordination of staff from various City departments (Public Works, Parks and Recreation, Police, Fire,
Administration) focused on addressing issues associated with homelessness, including:
1. Develop a Strategic Plan to guide a sustained effort of engagement by regional partners, non‐profit
partners, and community members to identify and implement coordinated solutions to chronic
homelessness.
2. Maintain and update informational resources, such as the City's Homelessness Solutions web page,
about City actions to help the unhoused population, and the scope of services provided to address the
challenges of homelessness by the County, State, City, and regional partners.
3. Work to prevent homelessness through a Safe Housing Outreach and Education Program that will
provide, among other duties, information about rental assistance programs, eviction protection
programs, and new housing opportunities.
4. Pursue a coordinated lobbying strategy to motivate action at the State and regional level, and research
and secure additional sources of funding to address local challenges.
Strategy 3.7 ‐ Environmental Protection and Water Quality
Environmental clean‐ups in creek and open space areas associated with abandoned personal property and
trash.
Strategy 3.8 ‐ Regional Engagement and Grant Management
Ensure active participation and representation of the City in the County's regional strategic planning efforts to
develop regional solutions to chronic homelessness. Attend HSOC & PACT meetings, support City Elected
Officials on the HSOC, and report status of agenda items back to staff. Support the Housing Policy and
Programs section and Office of DEI on homelessness‐related funding opportunities, such as CDBG, GIA, DEI,
and other State/Federal/local sources.
Strategy 3.9 ‐ Community Action Team (CAT) and Downtown Bike Team Resources
Expand the current Community Action Team by adding an additional social worker position and continue to
provide public safety services by utilizing the Community Action Team; includes two officers and a social
worker. Continue to provide public safety services by utilizing the downtown bike team.
Strategy 3.10 Mobile Crisis Unit (MCU) Pilot Program Implementation
Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non‐emergency response and care
to unhoused community members. Implement the program with the goals of reducing emergency dispatch of
paramedics and law enforcement to community members who need non‐emergency support. Engage with the
County of San Luis Obispo in the implementation of the pilot program so that if it is successful it can be scaled
up and replicated across the region.
Strategy 3.11 – Non‐Profit Partner Funding Support
Research and partner with non‐profit partners in pursuing funding sources such as CARES Act and Project
Homekey grants. Support additional safe parking opportunities in the City and support coordinated regional
efforts for expanding transitional housing, and shelter resources. Provide ongoing funding support to CAPSLO
from the City’s General Fund, which in addition to grant sources will enable programs such as the Homeless
Services Center, safe parking, and warming center functions to continue and expand. Continue to administer
26 Page # 48
Section B: Major City Goals – Housing & Homelessness
Within existing
resources*
New Resources
(SOBCs) Capital
Within existing
resources*
Resources
(SOBCs) Capital
3.1 Implement Housing Element $ 140,000 9,090,100$ 115,000$ 25,105,817$
3.2 Implement Inclusionary Housing Ordinance
3.3 Below Market Rate Portfolio Management $ 60,000 $ 117,000 30,000$ 117,000$
3.4 Financial Management $ 35,000 35,000$
3.5 Advisory Body & Council meetings & support
3.6 Homelessness Team Coordination $ 322,583 295,212$
3.7 Environmental Protection and Water Quality $ 177,400 $ 65,000 183,360$ 70,000$
3.8 Regional Engagement and Grant Management
3.9 Community Action Team Resources $ 629,964 $ 125,188 629,964$ 116,188$
3.10 Mobile Crisis Unit Pilot Program $ 300,000 300,000$
3.11 Non‐Profit Partner Support $ 253,000 $ 63,826 253,000$ 63,826$
SUB TOTAL $ 1,155,364 $ 1,133,597 $ 9,090,100 1,131,324$ 1,077,226$ 25,105,817$
TOTAL
Total Investment in Housing and Homelessness
Strategic Approach
21‐22 22‐23
11,379,061$ 27,314,367$
* Estimated calculation of current resources or budget that will be used to help advance major city goals (ex: staff hours, overhead, etc.)
CDBG and other federal, state and local grants in support of services and facilities that benefit unhoused
community members.
27 Page # 49
Housing & Homelessness
Task/ Action Capital
Expense Expense Expense Expense
3.1 Implement Housing Element
3.1 a. Inclusionary Housing Ordinance (HE programs 2.13 & 4.6)
Yes $90,000 $30,000
3.1 b. Flexible Density Program (HE Program 2.15)No
3.1 c. Develop Objective Design Standards & Update Development Review
Process (HE 6.22 & 6.23)No
3.1 d. Zoning Regulations Update - Housing (HE 5.5, 8.18, 8.23, 2.17 and AB
2345)No
3.1 e. Subdivision Regulations Update (HE 6.20)Yes $35,000
3.1 f. Missing Middle Housing (HE 5.4)Yes $50,000 $50,000
3.1 g. Additional Housing Element Program Implementation (HE 2.16, 2.18, 3.10,
4.7 & 4.8)No
3.1 h. Regional Coordination (HE Chapter 4)No
3.1 i. Housing Element Program Implementation (Chapter 3) No
3.1 j. Legal Support No
3.1 k. Legal Support SOBC Yes
3.1
l. Construct Prado Road Creek Bridge Replacement & S. Higuera/Prado Road
intersection reconstruction, adding protected bicycle lanes, sidewalks and a
bicycle protected intersection, as recommended in the Active Transportation
Plan.No 7,070,100$ 14,972,220$
3.1
m. Complete construction of the Prado Road Interchange project, providing
more efficient connectivity for motor vehicles and transit service (reducing
VMT), and providing physically-separated facilities for bicycles and
pedestrians, as recommended in the Active Transportation Plan.
No 500,000$ 5,849,571$
3.1 n. Development related park improvements specific to Laguna Lake and
Orcutt Area. No 1,520,000$ 4,210,026$
3.1 o. CDD Fleet Replacement No -$ 74,000$
3.2 Implement Inclusionary Housing Ordinance
3.2 a. Development review project referrals No
3.2 b. Legal Support No
Operating
Funded
through
SOBC
2022-23
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital
28 Page # 50
Housing & Homelessness
Task/ Action Capital
Expense Expense Expense Expense
Operating
Funded
through
SOBC
2022-23
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital
3.2 c. Legal Support SOBC Yes
3.3 Below Market Rate Portfolio Management
3.3 a. Inventory Management; Monitoring; Escrow services; Homebuyer & rental
services; BEGIN/FTHB Yes $117,000 $117,000
3.3 b. Attorney advice and support of legal documents no $60,000 $30,000
3.3 c. Legal Support No
3.3 d. Legal Support SOBC Yes
3.4 Financial Management
3.4 a. CDBG Program Administration No 35,000$ 35,000$
3.4 b. GIA Progarm Administration No
3.4 c. Affordable Housing Fund Administration No
3.4 d. Grant research; applications; coordination No
3.4 e. Legal Support No
3.4 f. Legal Support SOBC Yes
3.5 Advisory Body & Council meetings & support
3.5 a. Reports, Community meetings, presentations (does not include time
associated with tasks identified herein)No
3.5 b. HRC liasion No
3.5 c. Legal Support No
3.5 d. Legal Support SOBC Yes
3.6 City Homelessness Team Coordination
3.6
a. Coordination of staff from various City departments (Public Works, Parks
and Recreation, Police, Fire, Administration) focused on addressing issues
associated with homelessness.No
3.6
b. Develop a Strategic Plan to guide a sustained effort of engagement by
regional partners, non-profit partners, and community members to identify
and implement coordinated solutions to chronic homelessness.Yes $35,000
29 Page # 51
Housing & Homelessness
Task/ Action Capital
Expense Expense Expense Expense
Operating
Funded
through
SOBC
2022-23
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital
3.6
c. Maintain and update informational resources, such as the City's
Homelessness Solutions web page, about City actions to help the unhoused
population, and the scope of services provided to address the challenges of
homelessness by the County, State, City, and regional partners.No
3.6
d. Work to prevent homelessness through a Safe Housing Outreach and
Education Program that will provide, among other duties, information about
rental assistance programs, eviction protection programs, and new housing
opportunities.Yes
3.6
e. Pursue a coordinated lobbying strategy to motivate action at the State and
regional level, and research and secure additional sources of funding to
address local challenges.No
3.6 f. Housing and Homelessness City Staff Yes 287,583$ 295,212$
3.6 f. Legal Support No
3.6 g. Legal Support SOBC Yes
3.7 Environmental Protection and Water Quality
3.7 a. Environmental clean-ups in creek and open space areas associated with
abandoned personal property and trash Yes 10,000$ 15,000$
3.7 b. Environmental clean-ups in creek and open space areas associated with
abandoned personal property and trash No 132,400$ 138,360$
3.7 c. Environmental clean-ups in City Parks and public spaces associated with
abandoned personal property and trash Yes 55,000$ 55,000$
3.7 d. Environmental clean-ups in City Parks and public spaces associated with
abandoned personal property and trash No 45,000$ 45,000$
3.7 e. Legal Support SOBC No
3.7 f. Legal Support SOBC Yes
3.8 Regional Engagement and Grant Management
3.8
a. Active participation and respresentation of the City in the County's
regional strategic planning efforts to develop regional solutions to chronic
homelessness. No
30 Page # 52
Housing & Homelessness
Task/ Action Capital
Expense Expense Expense Expense
Operating
Funded
through
SOBC
2022-23
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital
3.8 b. Attend HSOC & PACT meetings, support City seat on the Commission, and
report status of agenda items back to staff No
3.8
c. Support the Housing Policy and Program section and the Office of
Diversity, Equity and Inclusion on homelessness related funding
opportunities, such as CDBG, GIA, DEI, and other sources.No
3.8 d. Legal Support SOBC No
3.8 e. Legal Support SOBC Yes
3.9 Community Action Team (CAT) Resources
3.9 a. Expand the current Community Action Team by adding an additional social
worker position.Yes 125,188$ 116,188$
3.9
b. Continue to provide public safety services by utilizing the Community
Action Team; includes two officers and a social worker. (Costs include
existing social worker position, but funding for the position is provided by the
County).No 376,724$ 376,724$
3.9 c. Continue to provide public safety services by utilizing the downtown bike
team.No 253,240$ 253,240$
3.9 d. Legal Support No
3.9 e. Legal Support SOBC Yes
3.10 Mobile Crisis Unit Pilot Program Implementation
3.10
a. Pair a crisis worker with an Emergency Medical Technician (EMT) to
provide non-emergency response and care to unhoused community
members. Yes 300,000$ 300,000$
3.10
b. Implement the program with the goals of reducing emergency dispatch of
paramedics and law enforcement to community members who need non-
emergency support. Yes
3.10
c. Engage with the County of San Luis Obispo in the implementation of the
pilot program so that if it is successful it can be scaled up and replicated
across the region.Yes
3.10 d. Legal Support No
3.10 e. Legal Support SOBC Yes
31 Page # 53
Housing & Homelessness
Task/ Action Capital
Expense Expense Expense Expense
Operating
Funded
through
SOBC
2022-23
PROGRAMS/PROJECTS
Strategic
Approach #
2021-22
Operating Capital
3.11 Non-Profit Partner Funding Support
3.11 a. Support non-profit partners in pursuing funding resources, such as CARES
Act and Project Homekey grants.No
3.11 b. Support a 25% expansion of the number of beds at the 40 Prado Homeless
Services Center.Yes $63,826 $63,826
3.11
c. Continue to expand Safe Parking opportunities and support coordinated
regional efforts for Safe Parking, transitional housing, and other shelter
resources.Yes
3.11 d. Ongoing General Fund support to CAPSLO for 40 Prado (includes safe
parking, warming center, operational support)No 143,500$ 143,500$
3.11 e. Bus Token in-kind program to CAPSLO No 13,500$ 13,500$
3.11 f. General Fund low income utility subsidies No 20,000$ 20,000$
3.11 g. Federal CDBG Grant for social services (Provided to CAPSLO to help fund
Homeless Services Center operations)No 76,000$ 76,000$
3.11 h. Legal Support No
3.11 i. Legal Support SOBC Yes
Total $2,288,961 9,090,100$ $2,208,550 25,105,817$
32 Page # 54
Section B: Major City Goals – Climate Action, Open Space & Sustainable Transport
Goal Statement:
To proactively address the climate crisis, continue to update and implement
the Climate Action Plan for carbon neutrality, including preservation and
enhancement of open space and the urban forest, alternative and sustainable
transportation, and planning and implementation for resilience.
Expectations:
The City will engage in projects and initiatives that contribute positively toward:
1. Reducing greenhouse gas emissions at both the municipal and community level on a trajectory
consistent with the Climate Action Plan target of carbon neutrality by 2035;
2. Achieving the vision to complete and sustain the San Luis Obispo Greenbelt;
3. Integrating best practices for urban forestry throughout the community and City landscape in order to
accrue the multiple benefits that trees provide including shading and cooling, beautification, habitat,
stormwater retention, and carbon sequestration;
4. Implementation of Tier 1 projects identified in the Active Transportation Plan (ATP), and planning and
investment in transit service enhancements and transit fleet electrification, in order to achieve the
mode‐share split objectives identified in the Circulation Element of the General Plan;
5. Adapting and becoming more resilient to the impacts of climate change through the Resilient SLO
planning process and through increased implementation efforts that address public health and safety.
In addition, it is expected that this work must necessarily be integrated and cohesive with the parallel Major
City Goals of Diversity, Equity, and Inclusion; Housing and Homelessness; and Economic Recovery, Resilience,
and Fiscal Sustainability.
Stakeholders/Responsible Departments:
For the purposes of this Major City Goal (MCG) administration, monitoring, and reporting, City Administration
is the lead department. However, this goal will require a “whole of government” approach, including
participation by all City departments with special attention provided by Public Works, Parks and Recreation,
Community Development, and Utilities. To ensure accountability and ongoing collaboration, the City will
convene an internal quarterly MCG working meeting to ensure strategic coordination, while also continuing to
administer the Green Team to develop tactical responses and ongoing prioritization of work efforts.
Strategic Approach
Strategy 4.1 – Provide capacity to achieve Council's adopted goals
To implement Council’s goals, the City will need to rely effectively and adequately on increased staffing
support, contract resources, and external community partners to build needed capacity. This includes either
new or realigned staffing resources in the Office of Sustainability, Solid Waste Program, Urban Forestry, and
4. Climate Action, Open Space and Sustainable
Transportation
33 Page # 55
Section B: Major City Goals – Climate Action, Open Space & Sustainable Transport
Ranger Service. Contract resources are needed for tasks including grant writing and communications support,
open space vegetation management, tree maintenance, and building / facility energy assessment and
management. The City is fortunate to enjoy numerous community partnerships and relationships pertinent
to this Major City Goal; notable partners anticipated to play key roles in this work program include the SLO
Climate Coalition, ECOSLO, and the Coastal San Luis Resource Conservation District.
Strategy 4.2 ‐ Continue to update and implement the Climate Action Plan for carbon neutrality.
The City’s Climate Action Plan for Community Recovery (2020) identifies projects, programs, and policy
development across six main organizing pillars: 1. Lead by Example, 2. Clean Energy Systems, 3. Green
Buildings, 4. Connected Community, 5. Circular Economy, and 6. Natural Solutions. In “Volume II: Technical
Foundation and Work Program” specific tasks and timelines are identified for implementation; the work
program for this Major City Goal, therefore, is attendant to those work products scheduled for the 2021‐23
Financial Plan time horizon in order to stay on track with the larger goal of achieving carbon neutrality by
2035.
Strategy 4.3 ‐ Preserve and enhance open space and the urban forest.
The City enjoys a proud land conservation legacy that it has achieved through its signature Greenbelt
Protection Program over the past 25 years. This Major City Goal work program affirms the City’s commitment
to continuing to purchase open space land interests for permanent conservation, habitat and watershed
protection, and ensuring the integrity of wildlife corridors and ecosystem functions. As the City’s open space
system continues to grow, building capacity to adequately maintain, manage, and provide land stewardship
and educational activities also becomes paramount. Installation of sustainable trail systems for hiking and
biking is vital for community well‐being and mental and physical fitness. Open space and natural systems also
play a critical role in storing and sequestering carbon and provide valuable climate resilience benefits.
The City is also long recognized for the past 37 years as part of the Arbor Day Foundation’s “Tree City USA”
network that extends across the entire country. This Major City Goal provides an opportunity to focus
renewed efforts on the City’s cherished urban forest by completing the first ever Urban Forest Master Plan,
providing a comprehensive update of the City’s tree inventory and assessing overall tree canopy,
implementing a contemporary tree database and tracking system, working towards the goal of planting
10,000 new trees by 2035 in partnership with ECOSLO and the community, and moving towards an integrated
approach to urban forestry that accounts for street trees, park trees, open space trees, and riparian trees in a
more holistic manner.
Strategy 4.4 – Alternative and sustainable transportation
To achieve this vital component of the Major City Goal, the City will implement projects and programs that
have shown the ability to effectively shift mobility from single‐occupant, fossil fuel powered vehicles to active
and shared transportation modes, and in doing so will provide for a sustainable and equitable circulation
system consistent with the City’s General Plan mode split objectives. Specific actions will support
implementation of the City’s Active Transportation Plan (2021), transit service enhancements and transit fleet
electrification, Vision Zero efforts aimed towards eliminating traffic‐related deaths, and local and regional
efforts to support sustainable growth while reducing vehicle miles traveled and greenhouse gas emissions.
34 Page # 56
Section B: Major City Goals – Climate Action, Open Space & Sustainable Transport
Within existing
resources*
New Resources
(SOBCs) Capital
existing
resources*
Resources
(SOBCs) Capital
4.1
Provide Sustainability Resources to achieve
Council's Adopted Goals $ 10,000 $ 319,536 ‐$ 10,000$ 292,892$ ‐$
4.2
Continue to update and implement the
Climate Action Plan ("CAP") for carbon $ ‐ $ ‐ 1,005,000$ 25,000$ 100,000$
4.3
Continue preservation, maintenance, and
enhancement of the City's open space and
urban forest $ 170,000 $ 95,000 750,000$ 170,000$ 20,000$ 630,000$
4.4 Alternative and sustainable transportation $ 23,500 $ 105,350 10,337,660$ 23,500$ 31,071$ 12,737,731$
4.5 Planning and implementation for resilience $ ‐ $ 147,490 2,500,000$ ‐$ 110,739$ 930,000$
SUB TOTAL $ 203,500 $ 667,376 $ 14,592,660 228,500$ 454,702$ 14,397,731$
TOTAL 15,463,536$ 15,080,933$
Total Investment in Climate Action, Open Space and Sustainable Transportation
Strategic Approach
21‐22 22‐23
* Estimated calculation of current resources or CIP budget that will be used to help advance major city goals (ex: staff hours, overhead, etc.)
Strategy 4.5 – Planning and implementation for resilience
In the face of a rapidly changing climate and observable associated weather‐related impacts, the City will
work to improve community resiliency to climate risks and hazards by taking the following actions: 1.
assessing vulnerabilities of the City’s physical assets, critical infrastructure, and social and economic
conditions, 2. update the City’s General Plan Safety Element, 3. create approaches across key sectors for City
operations and ensure City residents and businesses are equipped with the information and strategies
needed to build collective capacity to adapt and thrive into the future, and 4. continue to implement and
build increased capacity for known priority actions such as reducing fuel loads within the Wildland‐Urban
Interface on City property and reducing the potential for local flooding along creeks and drainage areas.
35 Page # 57
Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense Expense Expense Expense4.1 Provide Sustainability Resources to achieve Council's Adopted Goals4.1a. To ensure consistent maintenance and adequate oversight of City Open Space lands, add one net new Ranger Maintenance Worker to maintain level of service standards following recent Open Space acquisitions. The City's level of service standard for Open Space is 1 Ranger per 1,000 acres.Yes 70,854$ 74,105$ ‐$ 4.1b. To address Ranger Services staffing, recruitment, and retention, convert 5 Ranger Specialist positions (currently limited benefit temporary) to full‐time regular permanent positions. Yes84,561$ 92,421$ 4.1c. Create a limited term Sustainability & Natural Resources Analyst position to support open space conservation planning, implement Climate Action Plan actions that were established for 2021‐23 on time, and support the completion of the Resilient SLO climate adaptation work effort.Yes62,753$ ‐$ 62,753$ ‐$ 4.1d. Restore the Sustainability & Natural Resources Intern position to support open space administration and planning efforts and climate action plan implementation efforts, including completion of the Community Forest Master Plan. Costs include $10,000 in Yr 1 for minor office retrofits to support the office of sustainabilityYes22,368$ ‐$ 13,613$ ‐$ 4.1e. Hire a CivicSpark Fellow for one year to initiate, complete, and begin implementing a municipal solid waste reduction initiative.Yes29,000$ ‐$ ‐$ 4.1f. Continue grant writing consulting support to ensure focused and competitive proposals for state, federal, and private grants. Yes50,000$ ‐$ 50,000$ ‐$ 4.1h. Orient the Green Team to support "Lead by Example" implementation, "Resilient SLO" implementation, and all‐staff educational efforts.No‐$ ‐$ ‐$ ‐$ 4.1i. Continue SLO Climate Coalition support to provide a resource for community members to participate in climate action initiatives and build overall community capacity. No10,000$ ‐$ 10,000$ ‐$ 4.1j. Convene an inter‐departmental staff team to assess and provide recommendations for the Urban Forest Program's future role in advancing sustainability goals and objectives.No4.1 4.1 Legal SupportNo4.1 4.1 Legal Support SOBCYes4.2 Continue to update and implement the Climate Action Plan ("CAP") for carbon neutrality4.2a. Complete the Biennial Climate Action Plan Update, as called for by CAP Administrative Action 3.No ‐$ ‐$ ‐$ ‐$ 2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐2336Page # 58
Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense Expense Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.2b. Implement the Lead by Example Municipal Operations Carbon Neutrality Plan, as called for by CAP Lead by Example task 1.1. Specific projects include: ‐ i. Install electric vehicle chargers to support the transition to all‐electric fleet vehicles. ‐ ii. Initiate and complete Building and Facility Energy and Decarbonization Study in order to identifiy and prioritize projects for City facilities.‐ iii. Complete installation of lighting retrofits at City Hall and Fire Station 1 using available on‐bill financing.‐ iv. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool.‐ v. Review options to further integrate climate action into the 2023‐25 Financial Plan. No290,000$ 100,000$ 4.2c. Provide for ongoing support for Central Coast Community Energy Policy and Operations Board Members, and engage in staff level policy and program development, as called for by CAP Clean Energy task 1.1.No‐$ ‐$ ‐$ ‐$ 4.2d. Update the Clean Energy Choice Program for New Buildings for consistency with the 2022 California Building Code update, as called for by CAP Green Buildings task 1.1.No‐$ ‐$ 25,000$ ‐$ 4.2f. Initiate a new grant program to catalyze energy efficiency and decarbonization retrofit projects in existing buildings that will also serve as demonstration and showcase projects, in support of CAP Green Buildings task 2.1.Yes‐$ ‐$ ‐$ 4.2g. Provide support for community electric mobility work being led by the SLO Climate Coalition, in support of CAP Connected Communities task 3.1.No‐$ ‐$ ‐$ ‐$ 4.2g. Implement organic waste reduction measures required by California Senate Bill 1383, which are also called for by CAP Circular Economy tasks 1.1, 1.2, 1.3, and 2.1.No4.2 4.2 Legal SupportNo4.2 4.2 Legal Support SOBCYes4.2 Transit Facility EV Charging InfrastructureNo715,000$ ‐$ 4.3 Continue preservation, maintenance, and enhancement of the City's open space and urban forest4.3a. Working with the Coastal San Luis Resource Conservation District, complete existing planning efforts and pilot program implementation at Johnson Ranch Open Space and City Farm intended to improve soil health and remove and store carbon, as called for at CAP Natural Solutions task 1.1.No‐$ ‐$ ‐$ ‐$ 37Page # 59
Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense Expense Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.3b. Complete an Urban Forest Master Plan including a comprehensive update of tree inventory update, assessment of tree canopy coverage, and implementation of an ongoing tracking system, as called for by CAP Natural Solutions task 2.1.No140,000$ ‐$ 4.3c. Establish a contract service for enhanced tree pruning and maintenance to ensure the long‐term health and vigor of the City's Urban Forest, as well as public safety and identify a strategy for a prioritized replacement schedule for downtown ficus trees, and begin implementation in order to ensure the long‐term preservation of the Downtown street tree canopy. 175,000$ 175,000$ 4.3e. Partner with ECOSLO to support the 10,000 Trees by 2035 goal through a tree planting and maintenance program, as well as continue with the SLO Stewards Docent Program, annual creek clean up efforts, and administration of the SLO Green Business Program.Yes20,000$ ‐$ 20,000$ ‐$ 4.3f. Actively pursue opprtunities to purchase open space lands and permanent land conservation agreements in furtherance of the City's Greenbelt Protection Program.No250,000$ 250,000$ 4.3g. Update the existing Cerro San Luis Natural Reserve Conservation Plan (2005), including a contemporary natural resources inventory, mapping, policy review, and identification of land stewardship needs and priorities. No‐$ 4.3h. Implement priority projects and actions at Cerro San Luis Natural Reserve consistent with the updated Conservation Plan.No4.3i. Update the existing South Hills Natural Reserve Conservation Plan (2007), including a contemporary natural resources inventory, mapping, policy review, and identification of land stewardship needs and priorities.No4.3j. Implement priority projects at South Hills Natural Reserve consistent with the updated Conservation Plan.No4.3k. Create the Righetti Hill Open Space Conservation Plan in order to guide the long‐term protection and approrpriate public use of this new City Open Space property.No4.3l. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan.No4.3m. Complete installation of adopted trail systems and establish regular Ranger Service patrol at Miossi Open Space.No4.3n. Complete installation of adopted trail systems at the Waddell Ranch addition to the Irish Hills Natural Reserve. No4.3o. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp, supporting the SLO Stewards Docents, and ongoing public information and programming.No38Page # 60
Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense Expense Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.3p. Implement Open Space Winter Hours of Use at Cerro San Luis Natural Reserve, including Biological Studies & CEQAYes75,000$ ‐$ ‐$ ‐$ 4.3q. Continued implementation by Ranger Service staff of all Open Space maintenance activites including establishing a replacement schedule for Open Space trailhead improvements, as well as replacement or repair of Open Space fencing currently in disrepair, all as set forth in the adopted Open Space Maintenance PlanNo170,000$ 85,000$ 170,000$ 105,000$ 4.3r. Continued, ongoing Ranger Service patrol of Open Space areas ensuring compliance with the City Open Space regulations, the safety of users, and protection of natural resources values and functions.No4.3s. Implement Laguna Lake Dredging and Sediment Management and Shoreline Stablizations Projects in order to begin restoration of the lake for recreation and habitat improvement purposesNo4.3 4.3 Legal SupportNo4.3 4.3 Legal Support SOBCYes4.3 Mid‐Higuera BypassNo100,000$ 100,000$ 4.4 Alternative and sustainable transportation4.4a. Establish consistent mode split tracking and reporting method, consistent with performance monitoring recommendations as called for in the Active Transportation Plan and CAP Connected Communities task 1.1.No‐$ 4.4b. Prepare a Mobility as a Service Study to guide potential implementation of programs and software tools to create an integrated platform linking access to transit, future bikeshare and ridesharing services, as called for in CAP Connected Communities task 1.2.Yes25,000$ ‐$ ‐$ ‐$ 4.4c. Prepare a Transit Innovation Study to provide a blueprint to guide the transition to increased service frequency, electrification and feasibility of no‐fare service for students, seniors, and others as called for in CAP Connected Communities tasks 4.2, 4.3, and 4.4.Yes50,000$ ‐$ ‐‐39Page # 61
Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense Expense Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.4d. Active Transportation Plan (ATP) Implementation:Implement infrastructure improvements and programs specifically identified in the City's Active Transportation Plan to improve access, mobility and safety for walking and bicycling citywide. Actions support the CAP Connected Communities task 2.1, ATP. Specific projects and programs within the current work program include:‐ i. Plan, Design and Construct the ATP Tier 1 Network ‐ ii. Construct Minor Bicycle and Pedestrian Access & Safety Improvements‐ iii. Complete preliminary design and right‐of‐way acquisition for the Railroad Safety Trail (Tiburon to Orcutt Road)‐ iv. Implement complete street improvements as part of 2021 and 2022 Roadway Sealing Projects‐ v. Continue to monitor trends in the Micromobility industry and feasibility of future SLO Bikeshare Program.‐ vi. Complete construction of the Broad/Woodbridge Pedestrian Hybrid Beacon crossingNo 550,000$ 550,000$ 4.4e. Perform additional sweeping to remove debris and obstructions along sidewalks, shared‐use paths, and bike lanes, including use of narrow street sweeping machinery and manual sweeping to clear protected bike lanes, parklets and painted bulbouts. FUNDING IN ECONOMIC RECOVERY 1.4 e‐2.Yes‐$ 4.4f. Construct sidewalk repairs and new ADA curb ramps to improve access and safety for pedestrians, particularly those with mobility challenges.No 235,461$ 250,000$ 4.4g. Acheive meaningful progress towards the "Vision Zero" goal by implementing recommendations from the City's Annual Traffic Safety & Operations Program, with particular focus on eliminating injury collisions involving vulnerable road users such as bicyclists, pedestrians, seniors and children.No 1,000$ 50,000$ 1,000$ 50,000$ 4.4h. Construct the Anholm Neighborhood Greenway Phases 1B and 2, completing the priority bicycle and pedestrian route between Foothill Boulevard and Downtown SLO, including safety lighting and public artwork at the US 101/Chorro UndercrossingNo 2,450,000$ ‐$ 4.4i. Complete construction of the Orcutt Road/Tank Farm Road Roundabout, reducing congestion and auto emissions and improving access and safety for bicycles, pedestrians and drivers.No upd4.4j. Complete construction of the California/Taft Roundabout, reducing congestion and auto emissions and improving access and safety for bicycles, pedestrians and drivers.No300,000$ 2,798,000$ 3.4k. Install new streetlights throughout the cityNo75,000$ 75,000$ 40Page # 62
Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense Expense Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.4k. Install new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar options where feasible, to improve safety for active transportation users. No 100,000$ 1,350,000$ 4.4 Higuera St. Widening ‐ Bridge to Elks & Fontana to Chumash510,000$ ‐$ 4.4n. Continue Active Transportation Education and Outreach to encourage safe behaviors for all road users and to encourage interest and use of active transportation modes.No22,500$ 22,500$ 4.4o. Prepare Feasibility Study for Potential City VMT Mitigation Program, providing a programmatic mechanism to reduce VMT and GHG production of new development projects within the city.No4.4p. Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification of buses and bus charging infrastructure. No1,854,000$ 1,910,000$ 4.4q. Replace SLO Transit bus shelters to maintain a quality environment for new and future transit users.No105,000$ ‐$ 4.4 r. Transportation Interns (assistance with sustainable transportation efforts)Yes30,350$ 31,071$ 4.4 4.4 Legal SupportNo4.4 4.4 Legal Support SOBCYes4.4 Neighborhood Traffic ImprovementsNo75,000$ 75,000$ 4.4 Parking Lot Maintenance ‐ Bus YardNo5,000$ 500,000$ 4.4 Pedestrian & Bicycle Pathway MaintenanceNo370,000$ 200,000$ 4.4 Street Reconstruction & Resurfacingno3,513,199$ 4,239,731$ 4.4 Traffic Signs & Striping Maintenanceno25,000$ 25,000$ 4.4Development Agreement ‐ City Share (Buckley Extension Class I Bike Path and 600 Tank Farm Frontage Improvements)no120,000$ 715,000$ 4.5 Planning and implementation for resilience4.5a. Complete the "Resilient SLO" planning project (Safety Element Update and associated CEQA) to assess community vulnerability to the impacts of climate change and adopt a resilience policy framework in the City's General Plan, as required by California Senate Bill 379. Yes25,000$ ‐$ ‐$ ‐$ 4.5b. Following successful piloting at Terrace Hill Open Space, implement and expand vegetation management for fire fuel reduction, as well as to promote soil health and recruitment of native perennial bunchgrasses, using goats and sheep with a professional contractor in order to ensure a safe and effective operation.Yes20,000$ ‐$ 20,000$ ‐$ 4.5c. Proactively conduct pre‐season inspections of the creek system and implement the removal of woody debris, hazardous trees, and other obstacles that could lead to an increased potential for local flooding in accordance with the City's Routine Maintenance Agreement permit issued by the California Department of Fish and Wildlife.No41Page # 63
Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense Expense Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.5d. Replace or repair Open Space fencing that is currently in disrepair at Cerro San Luis Natural Reserve, Irish Hills Natural Reserve, Bowden Ranch Open Space, and the Bob Jones Trail. (Includes existing Creek and Flood Protection Staffing resources)No4.5e. Respond quickly to instances when hazardous trees are identified on City Open Space lands or creek areas where the City has a property interested.Yes20,000$ ‐$ 20,000$ ‐$ 4.5g. Conduct a microgrid feasibility assessment to identify City properties that could add solar, battery storage, and controls to allow operation during times of electrical grid outages as an uninterruptable power supply. No‐$ 40,000$ ‐$ ‐$ 4.5h. Establish an Open Space Fire Fuel Reduction Crew (part‐time staff, 4,000hours), including procurement of necessary machinery and equipment, in order to ensure that the City's has a reliable means of conducting fuel reduction activities.Yes64,640$ ‐$ 61,589$ 4.5i. Expand Technical Rescue Team roster from 3 to 6 firefighters to improve the City's open space rescue capabilities and improve self‐sufficiency following the first 72 hours of a regional disaster such as earthquake or flood where resources are often limited. Yes17,850$ 9,150$4.5 4.5 Legal SupportNo4.5 4.5 Legal Support SOBCYes4.5 Project: Storm Drainage Infrastructure ReplacementNo850,000$ 500,000$ 4.5 Project: Woodbridge Groundwater Runoff DiversionNo10,000$ 175,000$ 4.5 Project: Creek Trash CaptureNo50,000$ 50,000$ 4.5 Project: Pismo/Johnson/San Luis Creek Bank StabilizationNo50,000$ ‐$ 4.5 Project: Hydration Stations at Various ParksNo15,000$ 15,000$ 4.5 Project: Laguna Lake DredgingNo840,000$ 6.5 Project: Ludwick Community Center ‐ Roof and Solar ReplacementNo40,000$ 4.5Water Treatment Plant Emergency Power ‐ PSPSNo465,000$ ‐$ 4.5 Water Treatment Plant ‐ Power Storage Units Tesla Battery Grantno30,000$ ‐$ 4.5SGMA GSPNo150,000$ 150,000$ Total870,876$ 14,592,660$ 683,202$ 14,397,731$ Total Cost Per Fiscal Year $15,463,536 15,080,933$ 42Page # 64
Section C:
ONGOING COMMUNITY SERVICES
43 Page # 65
Ongoing Community Services
C‐1: OVERVIEW
As an incorporated city, San Luis Obispo provides the community with services that are specific to government and
are paid for by taxes and fees. Over the years, those “basic” services have been adjusted to the needs and desires
of the community and encompass now a large spectrum of departments, programs, and objectives.
These established services are considered “ongoing” and therefore form the base for every budgetary analysis and
the point of departure for the two‐year Financial Plan. However, those services could change based on the
community engagement and goal‐setting process as the needs of the community change and other, not yet
established services, might become more urgent or desired. It is therefore important to consider the current
programs as a switch often requires a trade‐off due to available funding. Considering the ongoing services will assist
the City Council in the decision‐making process and provide the background for potential trade‐offs in the services
to the Community.
C‐2: CURRENT SERVICES AND PROGRAMS
Community services provided by the City evolve over time and become a manifestation of the community’s
priorities and values. The City of San Luis Obispo has established new programs and grown its ongoing service
delivery over many decades. At a glance, they consist of:
44 Page # 66
Section C – Community Services
C‐3 – BASE BUDGETS FOR ONGOING SERVICE DELIVERY
COMMUNITY SERVICES GROUP ADMINISTRATION
2021‐22 2022‐23
1009 ‐ Community Services Group $ 480,349 $ 491,351
COMMUNITY DEVELOPMENT
2021‐22 2022‐23
4001 ‐ Community Dev Admin 844,382 867,663
4002 ‐ Commissions and Committees 34,939 34,939
4003 ‐ Development Review 1,640,399 1,698,461
4004 ‐ Engineering 590,693 599,217
4006 ‐ Building and Safety 1,708,588 1,750,394
4008 ‐ Housing Policy and Programs 410,558 416,217
Grand Total $ 5,229,559 $ 5,366,891
PARKS & RECREATION
2021‐22 2022‐23
7001 ‐ Recreation Admin 808,259 838,208
7002 ‐ Recreation Facilities 270,378 283,363
7003 ‐ Youth Services 1,161,921 1,200,245
7004 ‐ Community Services 639,046 674,728
7005 ‐ Ranger Service 587,816 621,107
7006 ‐ Aquatics 559,167 594,856
7007 ‐ Golf Course 700,871 721,653
7008 ‐ Jack House 10,500 10,500
Grand Total $ 4,737,956 $ 4,944,660
45 Page # 67
Section C – Community Services
PUBLIC SAFETY
FIRE 2021‐22 2022‐23
8501 ‐ Fire Admin 998,407 1,023,553
8502 ‐ Emergency Response 10,715,511 11,068,556
8503 ‐ Hazard Prevention 853,567 886,417
8504 ‐ Training Services 151,352 150,930
8505 ‐ Recruit Academy 175,975 ‐
8506 ‐ Fire Apparatus Services 457,849 465,923
8507 ‐ Fire Station Facility Support 44,955 42,305
8509 ‐ Mobile Crisis Support ‐ ‐
8599 ‐ Disaster Preparedness 7,175 7,175
Grand Total $ 13,404,792 $ 13,644,858
POLICE 2021‐22 2022‐23
8001 ‐ Police Admin 2,000,645 2,054,367
8002 ‐ Patrol 9,673,938 10,173,791
8003 ‐ Investigations 3,362,963 3,518,298
8004 ‐ Police Support Services 2,779,065 2,899,202
8005 ‐ Neighborhood Services 263,241 267,440
8006 ‐ Traffic Safety 881,108 910,143
Grand Total $ 18,960,959 $ 19,823,240
PUBLIC WORKS
2021‐22 2022‐23
5001 ‐ Public Works Admin 820,910 860,405
5002 ‐ Parks Maintenance 3,151,245 3,279,785
5003 ‐ Swim Center Maintenance 528,561 552,752
5004 ‐ Urban Forest Services 441,419 457,534
5005 ‐ Facilities Maintenance 1,323,398 1,359,285
5006 ‐ Streets Maintenance 1,520,852 1,576,153
5007 ‐ Traffic Signals and Lighting 477,586 494,510
5008 ‐ Fleet 1,202,749 1,220,365
5009 ‐ CIP Project Engineering 2,122,337 2,195,837
5010 ‐ Transportation Plan and Eng 958,631 996,433
5301 ‐ Stormwater & Flood Control 1,047,816 1,074,225
6107 ‐ Solid Waste Recycling 170,699 176,280
Grand Total $ 13,766,203 $ 14,243,564
46 Page # 68
Section C – Community Services
ADMINISTRATIVE SERVICES
2021‐22 2022‐23
CITY ADMINISTRATION AND IT
1001 ‐ Administration 1,153,350 1,204,380
1002 ‐ City Council 214,151 216,352
1003 ‐ Cultural Activities 347,632 357,963
1004 ‐ Economic Dev 323,667 327,271
1005 ‐ Natural Resource Protection 644,776 654,840
1007 ‐ Community Promotion 405,085 405,826
1021 ‐ City Clerk 570,667 657,638
1101 ‐ Network Services 3,067,952 3,235,295
1103 ‐ Information Services 1,094,697 1,128,005
Grand Total $ 7,821,976 $8,187,589
CITY ATTORNEY
1501 ‐ City Attorney 703,157 735,588
Grand Total $ 703,157 $ 735,588
FINANCE
2001 ‐ Financial Admin 492,719 492,334
2002 ‐ Budgets 155,510 185,543
2003 ‐ Revenue Management 401,907 416,939
2004 ‐ Purchasing 225,183 236,398
2005 ‐ Accounting 761,240 780,365
2006 ‐ Finance Support Services 352,700 352,700
2007 ‐ Finance Non‐Departmental* 377,658 1,809,228
Grand Total $ 2,766,918 $ 4,273,508
* Including city‐wide staffing contingency amount
HUMAN RESOURCES
3001 ‐ Human Resources Admin 1,164,937 1,195,158
3003 ‐ Wellness 17,411 17,411
Grand Total $ 1,182,348 $ 1,212,569
47 Page # 69
Section C – Community Services
OVERALL TOTAL
2021‐22 2022‐23
Total Program Cost $ 69,054,217 $ 72,923,819
Cost Allocation ($ 4,717,442) ($ 4,811,791)
Assumed Savings ($ 1,679,000) ($ 1,488,466)
Total $ 62,657,775 $ 66,623,532
Proposed SOBCs (Section E) $ 7,336,742 $ 6,623,532
Total with SOBCs $ 69,994,518 $73,249,058
48 Page # 70
Section D:
Local Revenue Measure
49 Page # 71
LOCAL REVENUE MEASURE
D‐1: OVERVIEW
One aspect of the financial planning process is recommending how to allocate General Fund revenues from the
Local Revenue Measure. As a General Purposes Tax, the City’s Local Revenue Measure (G‐20) expenditures are
categorized as General Fund capital improvement project costs or operating costs. Capital Improvement Projects
(CIP) fall into three categories; annual asset maintenance, asset replacement and new assets valued at over $25,000.
General fund operating expenses are for staffing and programs that provide services and/or support capital project
implementation.
D‐2: REVENUE ENHANCEMENT OVERSIGHT COMMISSION
The role of the Revenue Enhancement Oversight Commission (REOC) in this process is to make recommendations
to the city council regarding the uses of revenue generated by the essential services measure. The REOC shall take
into consideration the input provided by residents and community members during the annual citizen oversight
meeting, the purpose of the essential services measure, the major city goals established by the city council, and the
amount of revenue available from past fiscal years and projected to be available during the next fiscal year, in
making its budget recommendations to the council. On March 31, 2021, this report was presented to the REOC and
they unanimously support the proposed 2021‐23 Local Revenue Measure Expenditures presented in this report.
D‐3: COMMUNITY INPUT
There has been significant community engagement leading up to the development of the 2021‐23 Financial Plan.
Prior to the bi‐annual Community Forum, over 1,285 individual responses (or 64.3 hours of public comment) were
received for the Community Priority survey. Additionally, over 150 members of the community attended the virtual
Community Forum on January 14, 2021 (which also served as the Annual Citizen Oversight Meeting). Lastly, over
634 individual responses (or 31.7 hours of public comment) were completed proceeding the Community Forum.
Responses from 21‐23 Community Forum Local Revenue Measure Priority Ranking Exercise have been included as
Attachment 2.
D‐4: SPENDING PRIORITIES
Based on community input used to create the ballot language for Measure G‐20, the REOC at the February 18, 2021
meeting approved the following ten spending priorities that were used to create the recommend projects and
services to be included in the 2021‐23 Financial Plan:
1. Protect Financial Stability
2. Community Safety and Emergency Preparedness
3. Creek and Flood Protection
4. Address Homelessness
5. Safe and Clean Public Areas
6. Economic Development and Business Retention
7. Youth/Senior Services and Recreation Facilities
8. Street Maintenance and Transportation (includes bicycle and pedestrian improvements)
9. Open Space/Natural Areas Preservation and Maintenance
10. Other Services and Projects
50 Page # 72
Section D – Local Revenue Measure
D‐5: REVENUE
The current revenue projections for the Local Revenue Measure for the 2021‐23 Financial Plan are as follows:
2021‐23 LRM Revenue Projections
FY 2021‐22 $24,279,000
FY 2022‐23 $25,202,000
Total $49,481,000
These projections reflect the passage of Measure G‐20 by the voters in November 2020. These forecasted revenue
amounts will change over time and updates will be provided to the REOC and City Council accordingly.
These revenue amounts are based on the latest forecast from HDL which the City contracts with to analyze regional
and local trends and translate these into revenue forecasts. The “tripling” of revenues from the previously approved
measure means that the LRM is the City’s largest revenue stream. It also means that the capital improvement
projects which can occur going forward may be much larger in budget, scale, and impact than the past.
D‐6: BALANCE OF CAPTIAL VERSUS OPERATING COST
Previous input from the community and REOC has been to prioritize Local Revenue Measure funds for CIP. In recent
years, expenditures have been split approximately 70% capital and 30% operating costs. Operating program costs
frequently follow and/or support the implementation of CIP projects; for instance, the construction of a new park
will require staff to maintain it. In addition, operating programs deliver essential services that align with Local
Revenue Measure priorities. Given this interrelationship, it would not be sustainable to allocate all Local Revenue
Measure dollars solely to CIP projects without related operating program support to implement the projects nor
would this approach address some of the expectations from the public for services.
In the 2021‐23 Financial Plan, expenditures are proposed to be budgeted at 75% capital and 25% operating costs,
with an expectation of a range in future years of approximately 85% capital and 15% operating costs. The reason
for the increased operating allocation during the 2021‐23 Financial Plan is two‐fold. First, there is an increase of
one‐time funding that will help provide immediate economic recovery resources and other operating resources
needed to help the local economy recovery from the COVID‐19 pandemic and other emergent priorities. Second, it
allows the City time to ramp‐up the operating resources necessary to deliver on the ambitious Capital Improvement
Plan. The balance of CIP and operating costs for the 2021‐23 Financial Plan are listed below:
CIP Expenditure
Percentage
Operating Expenditure
Percentage
FY 2021‐22 73.6% 25.9%
FY 2022‐23 74.5% 24.9%
51 Page # 73
Section D – Local Revenue Measure
D‐7: RECOMMENDED PROJECTS AND SERVICES
As highlighted above, at the February 18, 2021 REOC meeting, the REOC approved 10 long‐term Community Services
and Investment priorities. Projects and Services were evaluated using both these priorities and the Major City Goals
established by the City Council to align funding for projects and services with revenue projections and recently
approved ARP funding. Each project and service were reviewed by the CIP Committee and the Financial Plan
Steering Committee comprised of department heads and staff from multiple City departments. The identified
projects and services were then reviewed for final recommendations by the City Manager.
The following discusses proposed Local Revenue Measure capital and operating expenditures for each fiscal year in
more detail.
FY 2021‐22 Local Revenue Measure Uses
The following chart illustrates the breakdown of proposed FY 2021‐22 Local Revenue Measure Uses by spending
priority:
A detailed list of the projects and services funded through the Local Revenue Measure in FY 2021‐2022 is included
in Attachment 1, but specific highlights include: funding for Police Officers and Firefighters, contributions to expand
capacity at the 40 Prado Homeless Services Center, creation of pilot Mobile Crisis Unit to address calls for service
related to mental health, an additional social worker to work in coordination with the Police Department’s
Community Action Team, additional funding for business support programs and other economic development
activities, an additional Ranger Maintenance Worker, funding for open space fuel reduction, funding for future open
space acquisition, replacement of the 911 system, permanent Downtown zig‐zag lighting and Downtown public art
installations, playground equipment replacement at several parks, Railroad Safety Trail fencing, Laguna Lake
1%
14%
7%
3%
4%
8%
14%
35%
8%
6%
2021‐22 LRM Uses ($24.1 M)
Protect Financial Stability
Community Safety and Emergency Preparedness
Creek and Flood Protection
Address Homelessness
Safe and Clean Public Areas
Economic Development and Business Retention
Youth/Senior Services and Recreation Facilities
Street Maintenance and Transportation (includes
bicycle and pedestrian improvements)
Open Space/Natural Areas Preservation and
Maintenance
Other Services and Projects
52 Page # 74
Section D – Local Revenue Measure
dredging, pedestrian and bicycle pathway maintenance, implementation of Phase II of the Anholm Neighborhood
Greenway Plan and street reconstruction and resurfacing Downtown including bicycle and pedestrian
improvements.
FY 2022‐23 Local Revenue Measure Uses
The following chart illustrates the breakdown of proposed FY 2022‐23 Local Revenue Measure Uses by spending
priority:
A detailed list of the projects and services funded through the Local Revenue Measure in FY 2022‐23 is included in
Attachment 1, but specific highlights include: replacement of critical equipment for the Fire Department, a new Fire
Training/Safety Captain, additional resources to remove trash and debris from parks, open space and creeks,
support for holiday lighting and activation Downtown, support for arts and culture based businesses and non‐
profits, supplies and equipment for recreation facilities and programs, replacement of storm drain infrastructure,
safety lighting for the Bob Jones trail, funding for restroom replacement and kiosk café in Mission Plaza, traffic
congestion relief and safety improvements projects, replacement of playground equipment at Mitchell Park,
funding for Prado Road bridge and widening, traffic signal and striping maintenance, street and sidewalk
maintenance services, public safety vehicle replacements, and electric vehicle charging stations at various City
facilities.
2021‐2023 LRM Capital and Operating Uses
The following charts illustrate the proposed LRM uses over the two‐year financial plan by spending priorities for
both the CIP and operating expenses.
1%
12%
6%
3%
12%
3%
9%
41%
4%
9%
2022‐23 LRM Uses ($25 M)
Protect Financial Stability
Community Safety and Emergency Preparedness
Creek and Flood Protection
Address Homelessness
Safe and Clean Public Areas
Economic Development and Business Retention
Youth/Senior Services and Recreation Facilities
Street Maintenance and Transportation (includes
bicycle and pedestrian improvements)
Open Space/Natural Areas Preservation and
Maintenance
Other Services and Projects
53 Page # 75
Section D – Local Revenue Measure
0%
10%
4%0%
9%
3%
14%
46%
5%
9%
2021‐2023 LRM Capital Uses ($36.6 M)
Protect Financial Stability
Community Safety and Emergency Preparedness
Creek and Flood Protection
Address Homelessness
Safe and Clean Public Areas
Economic Development and Business Retention
Youth/Senior Services and Recreation Facilities
Street Maintenance and Transportation (includes
bicycle and pedestrian improvements)
Open Space/Natural Areas Preservation and
Maintenance
Other Services and Projects
5%
23%
10%
11%4%
14%
5%
16%
8%4%
2021‐2023 LRM Operating Uses ($12.5 M)
Protect Financial Stability
Community Safety and Emergency
Preparedness
Creek and Flood Protection
Address Homelessness
Safe and Clean Public Areas
Economic Development and Business Retention
Youth/Senior Services and Recreation Facilities
Street Maintenance and Transportation
(includes bicycle and pedestrian improvements)
Open Space/Natural Areas Preservation and
Maintenance
Other Services and Projects
54 Page # 76
2021-222022-232021-222022-23Protect Financial Stability1 Fire Policy Research Software (Lexipol)11,169 9,369 E2 Fire Injury Reduction Program18,000 18,000 E3 Application Systems Specialist (1 FTE)105,312 110,384 E4 Financial Specialist - Accounting (1 FTE)73,882 77,281 E5 Accounting Assistant (1 FTE)68,004 71,106 E6 Half-Time Technology Project Manager (.5 FTE)52,444 54,669 ESubtotal328,811 340,809 - - Community Safety and Emergency Preparedness7 General Plan - Safety Element Environmental Review25,000 - C8 Police Records Reporting Software15,400 - D9 Emergency Response Live - Fire Training Improvements20,045 17,570 10 Fire Intern Program22,691 23,257 -- D11 Fire Recruitment Academy Support and Supplies29,000 - D12 Fire Emergency Operations Center Training (Emergency Management Services)30,000 30,000 13 Police - Public Safety Equipment Replacement and Supplies12,600 70,881 14 Fire Equipment Replacement (PPE, AED, etc.)177,499 15 Fire Inspection Management Software (Mobile Eyes)12,200 12,200 16 Fire Technical Rescue Team Expansion17,850 9,150 C17 Open Space and Creeks Hazardous Tree Removals20,000 20,000 C18 Fire Training/Safety Captain (1 FTE)191,276 191,276 19Community Safety and Emergency Preparedness (Firefighters, 2; Downtown Police Patrol Officers, 3, Downtown Sergeant, 1): FTE 6936,747 1,003,483 E20 Initial Design Study - Police Station Replacement100,000 300,000 21Police - Information Technology (Storage Area Network (SAN), Computer Aided Dispatch Hardware, Security Cameras, Interview Recording System)446,000 316,000 22 Police Evidence Storage Bldg. and Police Range - Roof Replacement5,000 47,200 23 Fire Station #1 Administration Bldg. Roof Replacement270,000 -24 Fire Station #1 Roof Access Ladders50,000 -25 Fire Station # 2 Parking Lot Maintenance45,000 -26 Fire Station #3 & #4 Remodel Space Study and Design25,000 75,000 D27 Fire Station #4 Exterior Paint-27,500 28 Fire Hydrant Replacement40,000 40,000 29 Facility Roll Up Door Replacements - Various Locations17,000 15,000 30Police - Fleet Replacement (Patrol Hybrid SUV, 2/YR; Motorcycles; SNAP SUV, 1; Investigations SUV, 1)220,000 235,000 31Fire - Fleet Replacement (1/2 ton truck, 1; Heavy Duty Truck, 1; Heavy Duty Truck w/ Utility Bed, 1; Compact Truck, 1; Open Space Rescue Truck, 1)275,000 465,000 Project TitleOperating ProgramsCapital Improvement PlanMCG2021-23 Local Revenue Measure ExpendituresThe following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G-20), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed and approved by the REOC.#MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.55Page # 77
2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#32 Radio Handhelds & Mobiles (Police and Fire)116,758 - 33 Uninterruptible Power Supplies 42,465 - 34 VMware Infrastructure Upgrade110,250 -35 Pipe Inspection Software & Licenses23,500 -36 911 Phone System Replacement250,000 -Subtotal1,332,809 1,555,316 2,035,973 1,520,700 Creek and Flood Protection 37 Creek and Flood Protection ( Wastewater Collection Operators and Supervisor, Environmental Compliance Inspectors, Stormwater Management, Environmental Programs Manager): FTE 6 632,567 659,031 C38 Storm Drainage Infrastructure Replacement (multiple locations)850,000 500,000 C39 Woodbridge Groundwater Runoff Diversion10,000 175,000 C40 Creek Trash Capture 50,000 50,000 C41 Pismo/Johnson/San Luis Creek Bank Stabilization50,000 - CSubtotal632,567 659,031 960,000 725,000 Address Homelessness 42 Homelessness Strategic Plan35,000 - H43 Expansion of 40 Prado Homeless Services Center Bed Capacity 63,826 63,826 H44 Housing and Homelessness Contract Services Support117,000 117,000 H45 Mobile Crisis Unit (Paramedic and Social Worker Pilot Program)300,000 300,000 H46 CAT Team Social Worker125,188 116,188 H47 Parks and Open Space Environmental Clean-Up Resources65,000 70,000 HSubtotal706,014 667,014 - - Safe and Clean Public Areas48 Increased Trash and Recycling Services in Public Spaces125,000 125,000 E49 Additional Landscape Maintenance Contract Services55,000 65,000 E50 Safe and Clean Public Areas (Parks Maint. Specialist): FTE 178,271 82,650 E51 Bob Jones Trail and Railroad Safety Trail Solar Lighting100,000 1,350,000 C52Mission Plaza Concept Plan Implementation (Phase 1 - Restroom Replacement and Kiosk Café)- 1,035,000 E53 Mission Plaza Railing replacement80,000 - E54 Downtown Safety Enhancement (street bollards)400,000 - E55 Curb Ramps and Sidewalks Replacement (various locations)50,000 150,000 C56 Sidewalk Replacement and Installation (includes street trees)100,000 100,000 C57 Street and Pathway Lighting (various locations)75,000 75,000 CSubtotal258,271 272,650 805,000 2,710,000 Economic Development and Business Retention 58 Arts, Culture and Community Partner Support50,000 25,000 E59 Business Promotions and Communication Support80,000 E60 Open SLO - Downtown Dining Temporary Staffing13,688 27,375 -- E61 Economic Development Program Support50,000 25,000 E62 Economic Development Data Tracking and Reporting30,000 30,000 E63 New Economic Development Strategic Plan-100,000 EMCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.56Page # 78
2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#64 Support for Underserved/Underrepresented Community Businesses- 150,000 D65 TBD Business Retention/Recovery Programs 500,000 250,000 E66 Zoning Regulations Update for Downtown Uses and Flexible Outdoor Spaces Citywide 125,000 - E67 Holiday Activation Support in Downtown for Lighting and Other Features 150,000 150,000 E68 Downtown Zig-Zag Lighting250,000 - E69 Downtown Public Art Installations200,000 - E70 Additional Banner Arms, Bench Arm Rests, Signs100,000 25,000 E71 Downtown Renewal (Open SLO: Supplemental funding for Curbside Parklets)200,000 - E72 Annual Public Art Maintenance and Projects (Utility Box Beautification, Small Public Art Projects, Maintenance) 92,500 92,500 ESubtotal998,688 757,375 842,500 117,500 Youth/Senior Services and Recreation Facilities 73 One-Time Aquatics Supplemental Staff due to COVID-19 Protocols62,000 - 74SLO Swim Center Minor Capital Maintenance and Operating Costs (Electricity conversation for solar)55,000 55,000 75 Swim Center Supplies (pool chemicals, etc.)25,000 25,000 76 Youth Services Staffing Resources (Equivalent to 1.5 FTEs)93,227 132,045 - - 77 Youth/Senior Services and Recreation Facilities (Parks Maint. Specialist): FTE 1 72,932 77,425 78 Parks and Recreation Master Plan Implementation200,000 200,000 79 DeVaul Ranch Playground Equipment Replacement60,000 - 80 Vista Lago Mini Park Playground Equipment Replacement50,000 - 81 Mitchell Park Playground Equipment Replacement- 100,000 82 Cheng Park Revitalization300,000 - D83 Meadow Park Pathways Refurbishment250,000 - 84 Orcutt Area - Linear Park Planning and Construction- 815,000 H85North Broad Street Neighborhood Park Construction175,000 - 86 Mission Plaza Arbor Refurbishment15,000 70,000 87 Jack House Arbor refurbishment- 7,500 88 Meadow Park Exercise/Par Course Equipment Replacement- 20,000 89 Parks Play Area Surfacing30,000 30,000 90 Santa Rosa Park Barbecue Replacements- 7,500 91 Poinsettia Creek Walk Pathway Refurbishment200,000 - 92 Laguna Lake Golf Course Maintenance20,000 20,000 93 Sinsheimer Park Hardscape Replacement135,000 - 94 Concrete Bench & Table Replacement Various Locations15,000 15,000 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.57Page # 79
2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#95 Hydration Stations Various Parks and Facilities15,000 15,000 C96 Railroad Safety Trail Fencing350,000 - 97Parking Lot Maintenance - (Meadow Park; Ludwick Community Center; Islay Park; Laguna Lake Park; Santa Rosa Park; French Park; City Facilities)130,000 205,000 98 Ludwick Community Center - Roof and Solar Replacement- 40,000 C99 Swim Center Furnaces Replacement- 40,000 100 Ludwick and Senior Center - Exterior Paint and Shell Rehabilitation- 30,000 101 Water Stations and Supply Lines25,000 25,000 102 Sinsheimer Stadium Irrigation and Drainage Replacement650,000 - 103 Irrigation Mainline Leak Repair15,000 15,000 104 Parks Major Maintenance - ADA Transition Plan Implementation 20,000 20,000 D105 Park Maintenance - Fleet Replacement: (Mower, 1; Tractor, 1; Trailers, 4;) 75,000 108,000 106Parks and Recreation - Fleet Replacement: (Golf Mower, 1; Golf Trailer, 1; P&R Trailer, 1; Minivan, 1; Dump Trailer, 1; Masticator, 1)139,000 103,000 107 Swim Center - Pool Automatic Vacuum- 18,000 108 Swim Center Olympic Pool Thermal Blankets5,000 - 109 Swim Center Bath House Ceiling5,000 - 110 Swim Center Therapy Pool Boiler85,000 - 111 Swim Center Pool Water Chemical Regulator50,000 - 112 Jack House Windows Walk Railing100,000 - Subtotal308,159 289,470 3,114,000 1,904,000 Street Maintenance and Transportation (includes bicycle and pedestrian improvements) 113 Accessibility and Process Improvement Support Services 34,000 12,000 114 Mobility as a Service Study25,000 - C115 One-Time Streetlight and Signal Electrical Costs60,000 - 116 Supplemental Street and Parklet Sweeping 250,000 250,000 E117Transportation Interns30,350 31,071 C118 Additional Street Operator for Maintenance of Streets and Right of Way78,312 119 Increased Asphalt and Concrete Budget60,000 60,000 120 Increased Budget for Signals and Street Light Equipment and Electricity25,000 25,000 121 Street Maintenance and Transportation (Engineering, Streets Maintenance, Active Transportation) FTE 4.60 532,105 557,962 122 Prado Road Interchange (YR 1 PA/ED Phase & YR 2 Design Phase)500,000 1,910,000 H123 California & Taft Roundabout Construction300,000 2,720,000 C124 Pavement Management (Downtown areas)2,404,647 2,425,000 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.58Page # 80
2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#125 Active Transportation Plan Implementation205,000 305,000 C126 21-22 Sealing Project Complete Street Components200,000 200,000 127 Concrete Street - Monterey - CA to Santa Rosa- 800,000 128 Prado Road Bridge & Road Widening 427,780 146,573 H129 Streets Maintenance - Fleet Replacement (F550 with Hooklift, 1; F550 with Utility Bed and Crane, 1; Axle Kneeling Trailer, 1; Asphalt Zipper,1) 390,000 - 130 Buchon-Santa Rosa Intersection Improvements- 250,000 131 Madonna Inn Frontage Bike Pathway (Madonna to Fernandez)150,000 132 Neighborhood Traffic Improvements75,000 75,000 C133 Bridge Maintenance - 100,000 134 Railroad Safety Trail from Cal Poly to Taft Street- 50,000 135 Engineering Pickup, 2; 3 Yr. Temp66,000 - 136 Transportation Safety & Operations 30,000 30,000 C137 Traffic Signs & Striping Maintenance25,000 25,000 C138 Pedestrian and Bicycle Pathway Inventory and Pavement Condition Index Study 20,000 - 139 Anholm Neighborhood Greenway Plan Implementation - Phase II2,450,000 - C140 South Street Median Landscaping240,000 - 141 Avila Ranch - Buckley Extension Class I Bike Lane120,000 - C142 Transportation Monitoring & Modeling Update70,000 Subtotal1,016,455 1,014,345 7,453,427 9,256,573 Open Space/Natural Areas Preservation and Maintenance143ECOSLO partnership - SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up20,000 20,000 C144 Fuel Reduction Crew Tools and PPE 4,500 C145 Sustainability & Natural Resources Analyst 62,753 62,753 - - C146 Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern - 13,613 - - C147 Fuel Reduction Crew (4000 Supplemental Staff Hours) 60,140 61,589 C148Open Space Vegetation Management and Fuel Reduction20,000 20,000 C149 New Ranger Maintenance Worker (1 FTE)70,854 74,105 C150 Ranger Services Staffing Resources (Equivalent to 2 FTEs)84,561 92,421 C151Open Space/Natural Areas Preservation and Maintenance (2 FTE Ranger Maintenance Workers ) 169,599 159,196 C152 Laguna Lake Dredging and Sediment Management Project Implementation840,000 - C153 Open Space Acquisition250,000 250,000 C154 Open Space Maintenance60,000 80,000 C155 Open Space Fencing25,000 25,000 C156 Urban Forest Maintenance175,000 175,000 C157 Urban Forest Master Plan140,000 - CSubtotal492,407 503,677 1,490,000 530,000 Other Services and Projects158 CIP Interns5,000 5,900 E159 Contract Heavy Equipment Mechanic85,220 89,065 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.59Page # 81
2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#160 Fleet Intern20,991 18,398 161 City Fleet Vehicle Repairs20,000 20,000 162 Increased Contract Funds for Specialized Mechanic Services50,000 50,000 163 Funding for Increased Cost of Facilities Maintenance Materials and Supplies 30,000 30,000 164 Electric Vehicle Charing Stations (Various City Facilities, Including Parks and Rec and Corp Yard) 100,000 100,000 C165 City Hall Landing Repair60,000 - 166 Council Hearing Room Modification and Functionality Improvements- 130,000 167 Information Technology Room Heat Pump Replacements20,000 - 168 Energy Management Controls Upgrade75,000 50,000 169 Citywide Wireless System Replacement- 70,641 170 City Storage Area Network (SAN)- 178,136 171 Major Facility Maintenance - ADA Transition Plan Implementation10,500 10,500 172 Fleet Maintenance Stationary Generator (200kw)100,000 - 173 Facilities Maintenance 3/4 ton Pickup with Utility Bed- 60,000 174 Capital Projects Engineering Staff500,000 1,000,000 175 Roundabout Public Art Installations300,000 400,000 ESubtotal211,211 213,363 1,165,500 1,999,277 Total 6,285,392 6,273,051 17,866,400 18,763,050 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.60Page # 82
Section E:
Significant Operating Budget Changes (SOBCs)
61 Page # 83
SIGNIFICANT OPERATING BUDGET CHANGES (SOBCS)
E‐1: OVERVIEW
As a cost control measure, the City requires increases to departmental budget line items in the programs above
$7,500 to be justified and approved by the City Manager before being brought forward for Council consideration.
A request can be brought forth for a variety of reasons, but is generally considered under the following
circumstances:
A. Essential for the protection of health and safety.
B. Needed for the advancement of Major City Goals
C. Needed to provide ongoing services to the community.
D. Realign ongoing services after budget cuts due to Covid‐19.
SOBC requests are divided into two categories: 1) one‐time for specific deliverables without ongoing service
requirements; 2) ongoing to adjust the operating program budget for long‐term service delivery.
Given the short‐term saving measures required due to the onset of the Covid‐19 health emergency, a multitude of
requests were submitted to bring service levels back to pre‐pandemic levels and adjust to forecasted workload
and service level requirements.
The pie chart below shows the distribution of SOBCs by Type. The largest area of request was for additional core
services resources.
The next sections go into detail on each SOBC, categorized by funding source.
Table E1 ‐ SOBC Overview by Funding Source:
General Fund SOBCs FY 21‐22 FY 22‐23
One‐time 3,764,923$ 2,487,918$
General Fund (non‐LRM) 1,022,285$ 538,777$
Local Revenue Measure G20 2,370,132$ 1,851,197$
Other Funding Sources * 372,506$ 97,945$
Ongoing 3,571,819$ 4,137,607$
General Fund (non‐LRM) 1,165,143$ 1,316,075$
Local Revenue Measure G20 1,493,039$ 1,882,106$
Development Review Offset 913,637$ 939,426$
TOTAL 7,336,742$ 6,625,526$
* see section E‐4 for detail
62 Page # 84
E‐2: General Fund SOBCsGeneral Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 Community Services Group Administration1Conversion of Supplemental Position to CSG Marketing Coordinator FTE Under the Community Services Group, the Marketing focused Community Coordinator is a business support position that provides communications for fee for service activities and promotion of these fee for service activities across the CSG departments. This position supplants a variety of advertising and marketing contracts previously utilized by City staff for marketing and communication purposes. This position also compliments the City's current contract resource with AMF Media Group. Staff is requesting this position (temporary contract was approved during the 2019 Organization of the Future Symposium) become permanent and the funding is on‐going.OngoingCore Services40,043$ 43,016$ 2Reallocation of Contract Services Budget to Part‐Time Administrative AssistantStaff has assessed staffing and organizational structure needs as related to the Organization of the Future effort and is requesting reallocation of $37,000 in Contract Services (1009.61013) to a part‐time (20 hours/week) Administrative Assistant II (+.5 FTE) to support the Assistant City Manager, Business Manager and Community Services Group analysts when working on cross‐departmental projects under the Business Manager's direction (1009.51001). OngoingCore Services‐$ ‐$ 3Administration and IT Department4Better Buildings SLO, Phase II ‐ Demonstration Project Implementation/Targeted Grant (4.2.e)Initiate a new grant program to catalyze energy efficiency and decarbonization retrofit projects in existing buildings that will also serve as demonstration and showcase projects, in support of CAP Green Buildings task 2.1. Funding within existing PO.One‐time Climate Action5Minor Office RetrofitsRetrofit existing Office of Sustainability work stations to accommodate return to work with reduced office space. One‐time Climate Action10,000$ 6"Undocu‐Friendly" Logo ‐ create. Part of effort to support undocumented communityFunding will be used to develop a visual marker to put on City documents indicating a service or program eligible to undocumented residents.One‐timeDEI1,000$ ‐$ 7Administrative Support for MCG Efforts This funding will be used to support the Office of DEI with Administrative Support dedicated to the office of DEI. This position will be responsible for supporting the DEI Manager and the overall success of the new program. One‐timeDEI30,555$ 34,158$ 8Central DEI Position (1 FTE)Funding will be used for the creation and recruitment of a Central DEI Position that will lead the Office of DEI and the DEI Major City Goal.OngoingDEI111,898$ 115,995$ 9City 101/Community Academy ‐ development & pilotFunding will be used for the development of a City 101/Community Academy to increase understanding / access / participation in City government throughout the community. One‐timeDEI15,000$ 15,000$ 10Community‐based Awareness, Education, Outreach ProgrammingFunding will be used to increase community‐based Awareness, Education, and Outreach Programming provided by Cal Poly and other proven providers.OngoingDEI5,000$ 10,000$ 11Community‐based Multicultural Center feasibility study Funding will be used to support a feasibility study for a Multicultural Center.One‐timeDEI2,500$ 2,500$ 12Comprehensive DEI Strategic PlanningThis funding is requested to conduct needs, priority, and resource assessments for the City and Community. The outcome of this initiative is to create comprehensive DEI initiatives and programming for the organization and community. One‐timeDEI35,000$ 13DEI Civic Spark FellowsThis funding will be used to contract with CivicSparks for a CivicSparks Fellow. Staff have had great success in utilizing the AmeriCorps/Civic Sparks organization to support initiatives such as the Climate Action Plan. This request is to hire 1 CivicSparks Fellow to support the implementation of Year 2 DEI Major City Goal initiatives. One‐timeDEI30,000$ 14DEI Consultant/subject matter expertThis funding will be used to retain consultation from DEI expert(s) to advise on and conduct system, policy and procedure assessments and improvements, inform community outreach approaches, and create change plans and actionable tactics. SME(s) will have specialty skills in data‐driven DEI solutions, deep understanding of societal and organizational system issues including bias, power dynamics, privilege and historical oppression, and local community knowledge.One‐timeDEI30,000$ 15,000$ Key63Page # 85
General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 15DEI Employee Committee Development/OperationsFunding will be used to provide the internal DEI Employee Committee with training and development opportunities.Ongoing DEI 5,000$ 5,000$ 16DEI High Impact Grants ‐ community programsFunding will be used to sustain the creation of the 20‐21 High‐Impact DEI Grants that successfully provided $109,800 in funding to 8 non‐profits to advance DEI in the City of San Luis Obispo.One‐time DEI 150,000$ 150,000$ 17DEI InternsThis funding will be used to hire Cal Poly, Cuesta, or Community Candidate Interns to support the Office of DEI. One‐time DEI 13,586$ 15,187$ 18DEI Office SpaceThis is a one‐time funding request for office space rental for the proposed DEI positions. As this is a new program there is currently no desk space for these positions to operate.Ongoing DEI 14,000$ 24,000$ 19DEI Trainings for Staff / Org Development efforts This funding will be used to implement and maintain DEI training for all City Employees, and organizational development. Ongoing DEI 15,000$ 15,000$ 20HRC Operating BudgetThis request is to increase the HRC's Operating Budget for enhanced presence, advocacy, community building, etc. (such as awareness campaigns, access/fairness efforts, citizen award, etc.). Ongoing DEI 3,000$ 5,000$ 21Implementation of DEI Programs ‐ Both in the Community and for Internal City Staff.Funding will be used for training, cultural celebrations, speakers, forums, workshops, etc. for both the community and internal City staff.Ongoing DEI 5,000$ 15,000$ 22PEN Manual Update to enhance input from underrepresented groupsThis funding is needed to update the City's formal Public Engagement & Noticing (PEN) procedures as well as other public outreach, input efforts to increase diverse participation. The funding will be used to develop and implement new tactics. One‐time DEI 15,000$ ‐$ 23Start‐Up and Ongoing Costs for the Office of DEIFunding will be used for the start‐up costs associated with the creation and maintenance of the Office of DEI.OngoingDEI20,000$ 5,000$ 24Communications Program SupportFunding is to maintain the current level of resources and production in the City's Communication Program. In addition to the Public Communications Manager role, contract support is needed for communications core services including web content, social media content and press releases as well as specialized needs including graphic design, video production and crisis communications support. This request will maintain the current level of funding for the program on an ongoing basis and also replaces ongoing funding that was removed from the budget due COVID‐19 budget reductions. OngoingEconomic60,000$ 60,000$ 25Grant Writing Support Services (4.1.d)Funding is for the continuation of grant writing consultant support. FY2019‐21 efforts have resulted in approx. $3.4 million in grant awards with approx. $13.8 million currently under review.OngoingClimate Action50,000$ 50,000$ 26Half‐time regular Application System SpecialistThis request is part of an effort to support necessary core GIS services to the organization in light of increasing GIS demands. This position will share the roles and responsibilities of the Enterprise EnerGov System and allow for redundancy on other Citywide enterprise applications. The EnerGov System is the backbone of Community Development permitting, building, safety, development and fee calculations. Costs offset by reductions in other operating areas. MCG 1.7OngoingEconomic17,542$ 19,949$ 27Reclass existing Information Technology System Engineer position to Security Engineer. This request is to reclass an existing Information Technology System Engineer to a Security Engineer. This is a specialized function in the Information Technology field requiring specific training and certification that is best accomplished through an identified single position focused on cyber security. The City has seen a dramatic increase over the last year in cyber attacks and invested in multiple security detection, mitigation, and reporting tools. A dedicated resource is needed to monitor and manage these systems as well as respond to threats. Minor cost increases offset by other savings. MCG 1.7OngoingEconomic‐$ ‐$ 28Open Space Winter Hours of Use ‐ CEQA and technical studies (if directed to proceed) (4.3i) Implement Open Space Winter Hours of Use at Cerro San Luis Natural Reserve, including Biological Studies & CEQAOne‐time Climate Action75,000$ 29Regular half‐time Administrative Assistant to Regular Full‐time. This request is to align resources with the workload for the division and allow technology staff to focus on technical issues in lieu of administrative work. Costs partially offset by reductions in other operating areas.OngoingCore Services829$ 1,077$ 64Page # 86
General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 30Utilities Locator Position Salary‐Split Cost CentersAdministrative change to change the funding for the Utilities Locator from the Water Fund to the Water, Sewer, and General Funds to better reflect the position's benefit to each of the funds. The Utilities Locator is an existing position responsible for all physical mark‐outs of underground City utilities: water, sewer, storm sdrains, street light conduits, and fiber optic conduits. OngoingCore Services3,592$ 3,592$ 31Community Development Department32919 Office Reconfiguration Funding is needed to plan and implement changes at 919 Palm to accommodate increased staff associated with high development permit activity as well as increased Capital Improvement Project activity. The plan will incorporate all CDD and PW employees and include space sharing in support of ongoing remote work opportunities. One‐time Core Services150,000$ 50,000$ 33Cannabis Business Program PosititonThis request is for a dedicated support position for the City's Cannabis Business Program and is funded through business fees in addition to a position reduction in the Police Department. This position is necessary to support the implementation and oversight of the City's Cannabis Program, including leading all cannabis permitting, coordinating all cannabis‐related activities within the City, working with and monitoring cannabis operators, developing cannabis policies, supporting ongoing, current or proposed cannabis projects, coordinating with all local, state and federal entities on regulatory and policy efforts, and implementing all City Council directives and recommendations for the Cannabis Program.OngoingCore Services111,898$ 115,996$ 34Cannabis Business Support Contract ServicesThis request is for required consultant support of the Cannabis Business Program and is funded through business fees. The new fee structure approved by the Council includes consultant support for application completeness checks, proctored application review, principal and employee background checks, compliance checks and other support efforts to respond to the needs of the program.OngoingCore Services52,095$ 57,345$ 35Code Enforcement Body‐Cams This request will help provide for the safety of code enforcement officers as they operate independently and conduct inspections in a wide variety of places, including on private properties. Currently code officers have no protective gear other than their phones. OngoingCore Services5,440$ 1,440$ 36Housing Element Program Implementation; Consultant SupportConsultant support is needed to complete four specific Housing Element Programs (2.13, 4.6, 5.4, 6.20). This includes updating our Inclusioanry Housing Ordinance, Missing Middle Housing and Subdivision Regulations. Inclusionary Housing Ordinance = 120k; Missing Middle Housing = 100k; Subdivision Regulations = 35k. One‐time Housing & Homelessness 140,000$ 115,000$ 37City Attorney Department38Staffing Reconfiguration39Paralegal (contract hire until Org Assessment complete)Ongoing Core Services 84,045$ 87,709$ 40Deputy City Attorney (contract resource until Org Assessment complete)Ongoing Core Services 130,174$ 135,039$ 41Legal Assistant (contract hire until Org Assessment complete)Ongoing Core Services 65,442$ 68,131$ 42Part‐time Asst. City AttorneyOne‐time Core Services 108,646$ 43Short‐term, Part‐time Legal Asst. 2One‐time Core Services 11,055$ 44Short‐term, Full‐time Legal Asst. 1One‐time Core Services 7,552$ 45Department Org AssessmentContract to evaluate the workload and organization of the City Attorney's Department and provide direction as to staffing needs and methods by which greater efficiency can be achieved.One‐time Core Services60,000$ 46eDiscovery/Document Review SoftwareA software program for the review of records produced in response to subpoenas, litigation discovery, and public records requests. It replaces an inefficient system of using software not designed for document review which causes frequent loss of work and extended response times.OngoingCore Services12,995$ 11,395$ Years of experience, and reliance on temporary supplemental staff or contract services, has lead department staff to believe increasing workload demand requires an increase in permanent staffing. This set of requests will staff the department in the short‐term to allow capacity to complete a Department Org Assessment that will either confirm more permanent staffing is needed or provide guidance on another path forward. Requests that are listed as ongoing were written as such so funds are included in the long‐term forecast and available should the Assessment recommend additional FTEs; if not, then funds would be removed from the budget.65Page # 87
General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 47Legal Analyst (reclassification)Reclassification of existing Paralegal to Analyst. Skill level required to complete workload is recognized to be different than the previous classification. Cost absorbed within operating budget.Ongoing Core Services 2,504$ 5,935$ 48Finance Department49Financial Specialist ‐ Payroll ‐ reclassificationReclassification of an existing Accounting Assistant to a Payroll Specialist for account for the increased workload and higher level duties. OngoingCore Services3,520$ 3,566$ 50Reallocate Temporary Resources to Ongoing FTEReallocation of funding to help offset the addition of one Accounting Assistant FTE (LRM Funded)OngoingCore Services(25,157)$ (25,759)$ 51MOTION Subject Matter Expert (.5 FTE Supplemental)This request is for a subject matter expert to help continue the implementation and enhancement of the Oracle ERP system in support of relevant, accurate and timely accounting processes. One‐time Core Services34,017$ 35,568$ 52Cannabis Auditing ResourcesThis request is to augment the current budget for annual Cannabis audits required for local Cannabis businesses. This ongoing requests assumes all business are open by FY 22‐23.OngoingCore Services18,000$ 53Fire Department54Fire Station Generator Maintenance ‐ Moved from Public WorksThis request is to transfer $8,300 in budget from Public Works Fleet Division to Fire Apparatus Services to maintain fire station generators due to newly agreed upon Service Level Agreement between the Fire Department and Public Works. OngoingCore Services‐$ ‐$ 55Recruit Academy Overtime Reduction ‐ Training/Safety Captain OffsetReduction in bi‐annual overtime amount due to the hiring of a full‐time Fire Training Captain (LRM Funded)OngoingCore Services(67,775)$ ‐$ 56Human Resources57Pay Equity AuditThis request will allow the Human Resources Department to conduct an internal pay equity audit through use of consultant support. This project is in support of the Major City Goal of Diversity, Equity, and Inclusion.One‐timeDEI30,000$ 58Onboarding softwareThis request provides funding for onboarding software. The onboarding software allows the Human Resources Department to effectively communicate with new hires, and efficiently track that the onboarding process is fully complete.OngoingEconomic11,000$ 11,500$ 59HR Reorganization to support organizational demandsAdditional 1.5 Human Resources Analyst II to support demands and complexities of the citywide organization. 0.5 FTE is for a leave and benefits focus. 1.0 FTE is for support for labor negotiations, meet and confer, performance management, and general high‐level analytics of changing legislation and regulations. Additionally reclassification of the HR Manager to oversee core HR.OngoingEconomic165,589$ 172,175$ 60Convert 2.5 FTE Contract staff to Regular staffConvert contract staff that have been retained for the past five years. Support includes: 1 FTE for employee data entry, transferred from Finance to HR and increased with system capabilities. 1 FTE for general administrative support, as the previous admin support is now dedicated to the benefits module. 0.5 FTE to support leave and worker's comp administration.OngoingEconomic192,106$ 195,246$ 61Office furniture to support Contract to Regular Staff This request is for an office reorganization and additional furniture to support staff.One‐timeEconomic20,000$ 62Office furniture and equipment to support new staff This request is for additional furniture and computer equipment to support new staff. One‐timeEconomic14,000$ 63Compensation StudyThis request is to fund consultant support for a compensation study.One‐timeEconomic30,000$ 64Transition to electronic filesThis request is to hire a scanning company to transition files from paper to electronic. One‐timeEconomic11,000$ 65Increased tuition reimbursementFunding to bring the total tuition reimbursement budget in line with recent historical averages.OngoingCore Services7,500$ 7,500$ 66Increases to recruitment‐related expensesIncreases to recruitment‐related expenses to utilize technology for more efficient and effective recruitment processes. Includes text‐messaging capabilities for candidates and software for dispatch testing.OngoingCore Services6,300$ 7,800$ 67Funding for InvestigationsThis request provides funding for 2 Investigations per year outside of the City Attorney's capacity.OngoingCore Services15,000$ 15,000$ 68Intern FundingFunding for an ongoing Human Resources Intern to assist with special projects and succession planning. One‐time Core Services16,005$ 16,364$ 69Professional RecruiterAnticipated need for a Department Head recruitment using a professional recruiter.One‐time Core Services40,000$ 66Page # 88
General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 70Police Department71Reclassification for Police Operations Support Specialist Reclassifying the Police Operations Support Specialist from a supplemental to FTE position, but annual hours will remain at 1040. Staff will work with Human Resources to change pay grade Ongoing Core Services 12,200$ 13,751$ 72EvidenceOnQ and DigitalOnQ EvidenceOnQ is software that integrates with Spillman, but has a much more robust tracking/reporting capability for evidence data. DigitalOnQ is specific to the storage of digital evidence, which will be stored on the cloud and provide a proper chain of command.OngoingCore Services8,555$ 8,555$ 73Reclassification for SNAP EmployeesChanging the pay grade of SNAP employees is intended to help with recruitment and retention of civilian supplemental employees that has become increasingly difficult to retain over the past few years. Increases in parking districts have resulted in an increased work load for SNAP and the change in pay grade would bring the positions in line with a Parking Enforcement Officer.OngoingCore Services9,622$ 9,622$ 74Lead Records Clerk This position will assist the Records Supervisor with Public Records Requests and other time sensitive/complex tasks. The workload for the Supervisor has increased related to public records requests which are time consuming and also involve working with the City Attorney to ensure compliance.OngoingCore Services93,696$ 97,868$ 75Ongoing costs related to Cannabis backgrounds and operation complianceFunding for police will be used to assist with operator and employee background checks, monitoring and investigating all criminal service calls and complaints related to cannabis businesses, conducting non‐qualified sales operations, and staying involved with decisions regarding the oversight and the implementation of the cannabis programOngoingCore Services95,272$ 105,292$ 76Eliminate Cannabis Officer PositionEliminate an officer position due to fewer business permits than anticipated; as a reuslt, the program has been reassessed and modified.OngoingCore Services(192,150)$ (194,026)$ 77Public Works Department78Office ModificationsThis one‐time request is to fund office modifications to accommodate anticipated additional CIP Engineering staff at the 919 Palm office.One‐timeEconomic‐$ 20,000$ 79Public Works Department80Utilities Locator Position Salary‐Split Cost CentersAdministrative change to change the funding for the Utilities Locator from the Water Fund to the Water, Sewer, and General Funds to better reflect the position's benefit to each of the funds. The Utilities Locator is an existing position responsible for all physical mark‐outs of underground City utilities: water, sewer, storm sdrains, street light conduits, and fiber optic conduits. OngoingCore Services14,367$ 14,367$ 81TOTAL2,187,428$ 1,854,852$ 67Page # 89
LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 Administration and IT Department1ECOSLO partnership ‐ SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up (4.3.c)Partner with ECOSLO to support the 10,000 Trees by 2035 goal through a tree planting and maintenance program, as well as continue with the SLO Stewards Docent Program, annual creek clean up efforts, and administration of the SLO Green Business Program.One‐time Climate Action $ 20,000 $ 20,000 2Open Space ‐ Vegetation Management / Fuel Reduction (Goats & Sheep contractor) 4.5.b)Following successful piloting at Terrace Hill Open Space, implement and expand vegetation management for fire fuel reduction, as well as to promote soil health and recruitment of native perennial bunchgrasses, using goats and sheep with a professional contractor in order to ensure a safe and effective operation.Ongoing Climate Action $ 20,000 $ 20,000 3Open Space and Creeks ‐ Hazardous Tree Removals (4.5.f)Provide resources to be able to respond quickly to instances when hazardous trees are identified on City Open Space lands or creek areas where the City has a property interested.Ongoing Climate Action $ 20,000 $ 20,000 4Sustainability & Natural Resources Analyst (4.1.a)Create a limited term Sustainability & Natural Resources Analyst position to support open space conservation planning, implement Climate Action Plan actions that were established for 2021‐23 on time, and support the completion of the Resilient SLO climate adaptation work effort. Costs offset by elimination of Civic Spark Fellow on temporary basis.One‐time Climate Action $ 62,753 $ 62,753 5Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern (4.1.b)Restore the Sustainability & Natural Resources Intern position to support open space administration and planning efforts and climate action plan implementation efforts, including completion of the Community Forest Master Plan. (Funded by GF in year 1)One‐time Climate Action $ 12,368 $ 13,613 6Focused efforts to attract & retain businesses owned by minorities and underrepresented communities. Support businesses serving underserved/underrepresented communities (1.1)Research, explore and potentially utilize innovative practices such as micro‐loans, targeted‐sector recruiting and promotion, City facilitated lending, grants, private support and crowdfunding to support businesses owned by or serving underserved/underrepresented communities. The City will also leverage its partner network, including the Chamber, Downtown SLO, REACH and others to support the DEI initiatives as they relate to economic development including creation, retention and attraction efforts. One‐time DEI $ 150,000 X7Arts, Culture and Community Partner Support Funding to support the recovery of arts, culture and community partners. One‐time Economic $ 50,000 $ 25,000 8Business Promotions and Communication Support(1.2) Elevate the promotion and branding of the Economic Development activities of the City highlighting the efforts around Sustainability and DE&I through the website, videos and other collateral. One‐time Economic $ 80,000 9Business Retention/Recovery Programs (1.2)Funding set aside for activations, promotions and programs such as "Light Up Downtown", "Buy Local Bonus" and "Shop local" to aid in the recovery from the impacts of COVID‐19 through out the City and including downtown. One‐time Economic $ 500,000 $ 250,000 10Economic Development Program Support (1.1.)Funding to ensure adequate temporary and flex resources available to develop and execute required initiatives. One‐time Economic $ 50,000 $ 25,000 11Economic Development Recovery scorecard (1.1.)Funding to develop and implement a scorecard to track visitation to key areas of the City, employment, DEI economic efforts and other relevant economic indicators.One‐time Economic $ 30,000 $ 30,000 12Fund approved Application Systems Specialist positionMaintain the Application System Specialist position as recommended by the Motion Steering Committee and best practices for program management of an ERP system (Motion). The ongoing core services for Motion are needed to maintain the ERP system, as well as the testing required before mandatory quarterly updates are released. MCG 1.5bOngoing Economic $ 105,312 $ 110,384 13Holiday Activation support downtown(1.4)Support Downtown SLO in expanding the Holiday "Light up Downtown" program and incentivize private participation through a matching program.Ongoing Economic $ 150,000 $ 150,000 14New Economic Development Strategic Plan (1.1.) Funding to update the Economic Development Strategic plan. One‐time Economic $ 100,000 15Regular half‐time Technology Project Manager to Regular Full‐timeThe Technology Project Manager will continue to drive improvements to the Motion ERP necessary to achieve the desired efficiency and effectiveness from the system. This position will support the completion of approximately 15 high priority projects over the next two years. This request has been recommended by the Motion Steering Committee and follows best practices for program management of an ERP system and IT project management. MCG 1.5bOngoing Economic $ 52,444 $ 54,669 E‐3: General Fund ‐ LRM ‐ SOBCsKey68Page # 90
LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 16Community Development Department17Safety Element Environmental ReviewOne‐time expense for consultant support to complete the environmental review for the safety element udpate. Use of a consultant ensures that the environmental documents can be completed in a timely manner, in coordination with the project team. The expense is not eligible for grant funding via the Cal Trans Resilient SLO grant.One‐time Climate Action $ 25,000 ‐ 18Zoning Regulations Update for Downtown Uses and Flexible Use of Outdoor Spaces CitywideTwo major updates to the Zoning Regulations will require consultant support for graphics, strategic input, best practices review and public outreach. The first project will look directly at Downtown SLO to identify and implement appropriate changes to allowed uses, and simplify the process of "re‐tenanting" vacant buildings. The second project looks at commercial uses city‐wide to implement changes that will allow more effective use of outdoor spaces, including parking lots. One‐time Economic $ 125,000 $ ‐ 19Homelessness Strategic Plan The Homelessness Response Manager position includes the creation of a strategic plan to help guide the efforts of all City staff engaged in managing the many challenges associated with helping unhoused City residents and addressing the impacts of homelessness on the community. The funding will be used for materials, public outreach, and limited consultant support.One‐timeHousing & Homelessness $ 35,000 $ ‐ 20Pilot: Housing and Homelessness Major City Goal (25% Expansion of 40 Prado HSC Beds) ‐ Proportions City share to County contributionWork with CAPSLO to help fund an expansion of shelter beds at the HSC by 25%. CAPSLO has capacity but not funding for additional shelter beds. This one‐time increase in funding will help match the local need with available services.One‐timeHousing & Homelessness $ 63,826 $ 63,826 21Pilot: Housing and Homelessness Major City Goal (Consultant Contract)This consultant contract is necessary for the overall management and administration of the City's Inclusionary Housing Inventory, including ownership units, rentals and financing. Over the past several years the City's Inclusionary Housing Inventory has grown substantially. Staff does not have the necessary training, expertise, capacity or resources to effectively accomplish the management and administration of this effort moving forward.One‐timeHousing & Homelessness $ 117,000 $ 117,000 22Finance Department23Accounting AssistantOngoing Economic $ 68,004 $ 71,106 24Financial Specialist ‐ AccountingOngoing Economic $ 73,882 $ 77,281 25Fire Department26Technical Rescue Team ExpansionThis request is to fund the increase of the City's Technical Rescue Team roster from 3 to 6 firefighters to improve the City's open space rescue capabilities and improve self‐sufficiency following the first 72 hours of a regional disaster such as earthquake or flood where resources are often limited. Costs of the roster increase include training, PPE and salary pay incentives. This is not an increase in FTEs, but rather increasing the capabilities of existing staff members.Ongoing Climate Action $ 17,850 $ 9,150 27Pilot: Mobile Crisis UnitThe Mobile Crisis Unit includes a social worker paired with an Emergency Medical Technician. The unit will be dispatched to non‐emergency calls for service involving unhoused residents and is intended to improve residents' ability to access needed social services and reduce law enforcement and paramedic response in non‐emergency situations, when possible. One‐timeHousing & Homelessness $ 300,000 $ 300,000 28Fire Intern ProgramRequest to implement a Fire Intern Program that serves all areas of the department. Staff will focus intern recruitment on younger individuals in the community that do not traditionally seek the fire service out as a career and used as a tool to improve diversity within the Department. The department has a strong history of hiring previous interns for full time positions in the department and an intern program would improve the department's ability to increase diversity within the department's permanent position ranks.One‐time DEI $ 22,691 $ 23,257 These requests are to right‐size the finance department resources in line with the growth of the City and the workload associated with protecting the City's financial stability. These positions are vital to track and account for the additional measure G‐20 revenue that the City will be managing.69Page # 91
LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 29Training and Permit Compliance SoftwareThis request is to fund the costs of Lexipol software which ensures policy compliance and tracking for emergency response staff. Lexipol software helps reduce liability for the department to ensure department polices are in‐line with regional, state and national standards and includes the ability to ensure all personnel that are impacted by the policy have read it. One‐time Economic $ 11,169 $ 9,369 30Mobile Eyes SoftwareThis request is to fund the ongoing costs of a mobile fire inspection software that the Fire Department implemented in FY2021. The fire department was able to secure one‐time funding to implement the software and now need ongoing budget to fund the annual service costs. The new software has eliminated significant inefficiencies including paper records that require manually entry after an inspection has occurred. Ongoing Core Services $ 12,200 $ 12,200 31Public Safety Equipment Replacement ProjectThis request is for the ongoing contribution amount for the Public Safety Equipment Replacement Sustainability Project that was established and funded beginning in FY20. The project funds the replacement of essential personal protective equipment (PPE), and critical gear such as cardiac monitors/AEDs, rescue equipment and fire hose/nozzles. The initial funding covered the first three years of the project until the project's annual contribution amount levels out after near term equipment replacement needs take place.Ongoing Core Services $ ‐ $ 177,499 32Suppression Staff Training Support33Fire Training/Safety CaptainOngoing Core Services $ 191,276 $ 191,276 34ER Live‐Fire Training ImprovementsOne‐time Core Services $ 20,045 $ 17,570 35Injury Reduction ProgramOngoing Economic $ 18,000 $ 18,000 36Recruit Academy SupportThis request is to fund additional background investigations and purchase additional personal protective equipment for fire recruits selected for the department's planned recruit academy in FY 2022. The department's base budget for the recruit academy budgets for four recruits and the department is anticipating a larger than normal academy size of six to seven.One‐time DEI $ 29,000 $ ‐ 37Emergency Management ServicesIn the absence of a full‐time emergency manager, this request is to support emergency management services both FY22 and FY23. This funding will help provide key staff with Emergency Operation Center (EOC) position specific training, EOC readiness and City costs associated with the FEMA Emergency Management Institute Community Specific Training Course in Emmitsburg, MD awarded to the City in 2019 and scheduled for calendar year 2022. One‐Time Core Services $ 30,000 $ 30,000 38Parks and Recreation39Open Space Fire Fuel Reduction Resources (MCG 4.5)40Fuel Reduction Crew (4000 Supplemental Staff Hours)Ongoing Climate Action $ 60,140 $ 61,589 41Fire Fuel Reduction Crew Tools and PPEOne‐time Climate Action $ 4,500 This request is to support the fire department's ability to carry out essential training to protect the health and safety of both firefighters and the community. A training/safety captain is needed to deliver a consistent and effective training program. Additionally, the Training/Safety Captain will increase needed capacity for the Deputy Fire Chief and Administration staff to focus on emergency management duties for the City including City training, certification, policy management and public preparedness education. The added Training/Safety Officer will result in a reduced need for overtime budget that was previously utilized to pull a fire captain away from normal duties to run the recruit academy. The overtime savings will be realized every other year moving forward as the recruit academy is budgeted every other year. Live‐fire training facility improvements are needed to ensure live‐fire trainings are both frequent and sustainable and the injury reduction program funding is needed to further the reduction of on job injuries related to Musculo‐skeletal injuries.This request is to establish an Open Space Fire Fuel Reduction Crew (part‐time staff, 4,000 hours), including procurement of necessary equipment, in order to ensure that the City has a reliable means of conducting fuel reduction activities.70Page # 92
LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 42Ranger Staffing Resources (MCG 4.1)43Net New Ranger Maintenance Worker (1 New FTE)Ongoing Climate Action $ 70,854 $ 74,105 44Conversion of Ranger LBTs to FTE (Equals 4 FTE Additions)Ongoing Climate Action $ 84,561 $ 92,421 45Open SLO Downtown Dining Resources (MCG 1.4a)This request is for additional supplemental staffing budget to support the Open SLO Program Downtown Dining within Mission Plaza.One‐time Economic $ 13,688 $ 27,375 46Open Space Environmental Clean‐up Resources (MCG 3.7)This request is to provide additional financial resources for environmental clean‐ups in the City's Open Spaces associated with increased volume of abandoned personal property and trash. The trash poses environmental issues, specifically related to water quality and fire safety. OngoingHousing & Homelessness $ 10,000 $ 15,000 47Aquatics Resources to Implement COVID‐19 Safety ProtocolsThis request is for additional staffing resources to adhere to COVID‐19 safety guidleines at the SLO Swim Center. Additional staff are required to conduct health screenings, clean all surfaces and equipment (kickboards, pull buoys) in between swim times, as well as adhere to class ratio requirements (smaller class sizes).One‐time Core Services $ 62,000 $ ‐ 48SLO Swim Center Minor Capital MaintenanceThis request is for resources to update and replace operational safety equipment such as lane lines, lane line reels, and stanchion posts for participant safety at the SLO Swim Center. These purchases are based on life expectancies (5‐10 yrs).One‐time Core Services $ 30,000 $ 30,000 49Youth Services Staffing Resources (MCG 1.2a)This request is for equitable wages and benefits for Youth Services Site Specialists to provide a sustainable staffing model to support quality childcare programming and program enhancements due to retention and recruitment challenges.Ongoing Core Services $ 93,227 $ 132,045 50Police Department51Supplies for Downtown Sergeant's educational programOngoing costs for supplies created and used by the downtown Sergeant for educational programs for downtown business owners. This may include printed materials, easels, binders, etc.Ongoing Economic $ 1,000 $ 1,000 52Social Worker ‐TMHA Support ‐ Fully Burdened CostAdding a second social worker to the Community Action Team to enhance current service levels and enable the team to reach out to more homeless persons in need of assistance. Position will be hired by THMA and contracted with the City.OngoingHousing & Homelessness $ 118,688 $ 116,188 53One time costs for Social Worker positionSet up costs related to office supplies, desk, and phone for Social Worker position. Office will be located at the Police Department.One‐timeHousing & Homelessness $ 6,500 54Public Safety SuppliesCosts related to ammunition have increased significantly and the amount of officers requesting monthly allotment (per the POA MOA) has increased as well. Duty ammunition must replaced annually based on the manufactorers recommendations.Ongoing Core Services $ 11,600 $ 11,600 55Spillman RIPA Module The Racial and Identity Profiling Act (RIPA) was formed as part of AB953. California law enforcement agencies will be required to collect data for stops made by law enforcement personnel. Annual reporting to DOJ is a requirement. One‐timeDEI $ 15,400 56Public Safety Equipment Replacement ProjectOngoing Contribution amount for the Public Safety Equipment Replacement Sustainability Project that was established and funded beginning in FY20. The Funding covered the first three years of the project until the project's annual contribution amount leveled out as near term equipment replacement needs took place. Ongoing funding for this project was added to the long‐term budget forecast for Police.Ongoing Core Services $ ‐ $ 58,281 This request is to add an additional Ranger Maintenance Worker and convert supplemental staff to full‐time to create a sustainable Ranger staffing model in response to increased Open Space acreage. The additional staffing resources are needed to properly maintain the City's Open Spaces, including recent aquisitions in fall 2018 of the Miossi property and Waddell Ranch property in fall 2016, resulting in a combined increased Open Space to 4,050 acres (55+ miles of trail system). Staffing resources have not been augmented since either acquisition.71Page # 93
LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 57Public Works Department58Mobility as a Service StudyPrepare a Mobility as a Service Study to guide potential implementation of programs and software tools to create an integrated platform linking access to transit, future bikeshare and ridesharing services, as called for in CAP Connected Communities task 1.2.One‐time Climate Action $ 25,000 59Transportation InternsThis request will provide 2 paid Transportation Interns at 1,000 hours/yr @ minimum wage. Prior to the pandemic, Transportation has had 2 interns throughout the year to perform traffic volume and speed survey data collection, administer red curb permits, perform intersection/driveway sight distance studies, assist with AutoCAD drafting for design projects, assist with mailers for public meeting noticing, and enter traffic collision data into the database used for our Annual Traffic Safety Report. Current staffing levels cannot handle all of these tasks.One‐time Climate Action $ 30,350 $ 31,071 60Variable Electricity Costs until Solar Costs are Known at Swim CenterThe Swim Center is converting to solar power in fall of 2021. The total cost of electricity is anticipated to increase, however the ultimate amount is still unknown.One‐time Core Services $ 25,000 $ 25,000 61CIP InternsIncrease hours on 2 paid CIP Interns from 740 to 1,000 hours/yr @ minimum wage. Historically, CIP Engineering Program has used paid interns to assist with delivering CIP projects including assisting engineers with preparing plans, specifications, and estimates for capital improvement projects, as well as assisting inspection staff with their duties and represent a good value to cost.One‐time Economic $ 5,000 $ 5,900 62Increased budget to existing Landscape Maintenance ContractsThis contract funding will fund increase maintenance in Mission Plaza and Downtown to maintain creek walk, and maintain newly City owned landscape improvements in developments and landscape improvments within separated bike lanes.Ongoing Economic $ 55,000 $ 65,000 63Pilot: Contract Services for increased trash and recycling services in Public SpacesIncreased solid waste in the parks has been challenging as a result of Covid dining restrictions and increased use of the facilities. This increased funding will provide contract services to address the solid waste levels in the parks and continue to test the recycling pilot program within the parks. This level of funding provides trash services to the parks system 3 days a week and recycling service in 8 to 10 parks 2 days a week.One‐time Economic $ 125,000 $ 125,000 64Supplemental Street and Parklet SweepingThe City's current street sweeping program consist of over 260 miles of curb and gutter and is at capcity. Currently, arterial streets, alleys, new developments, and center medians are not included in the regular sweeping program, and are swept as staff has ability. This additional funding will allow the department to increase sweeping throughout the City and will support the ongoing weekly sweeping and cleaning of downtown parklets and new protected bikeways proposed in Active Transportation Plan on a contract basis. One‐time Economic $ 250,000 $ 250,000 65Increased contract services budget for abandoned personal property and trash cleanup for parks, paths, bridges, and rail road right of wayThe number of homeless camps and the amount of property the City is responsible for addressing is increasing. This additional funding will allow the department to keep up with the anticipated work.OngoingHousing & Homelessness $ 55,000 $ 55,000 66Additional Streets Operator for Maintenance of Streets and Right of WayThe City is scheduled to accept multiple new residential developments as well as separated bike lanes. This additional infastructure will cause increased maintenance for the Streets program.Ongoing Core Services $ ‐ $ 78,312 67Continue supplmental Accessabilty and Process Improvement Manager for Project CompletionThis position will assist the department with completing the ADA ROW assessment and transitioning this into work plans, as well as reprogramming in the City's asset management system to align work flows with optimal efficiencies. Additional duties include: programing software for workflow efficiencies, training on programing, assistance with a variety of reports and requests for proposals, document fleet disposal auction process.One‐time Core Services $ 34,000 $ 12,000 72Page # 94
LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 68Contract Heavy Equipment MechanicThis funding will provide added capacity in the Fleet program and addresses a current staffing shortage. In addition, this will provide flexibility as the program evaluates long term needs in light of transitioning the fleet to electric vehicles.One‐time Core Services $ 85,220 $ 89,065 69Contract with Body Shop for Vehicle Accident RepairsThis request is for specialized repair work performed by body shops to repair accidents on City vehicles. These repairs are outside the scope of the fleet maintenance function. Ongoing Core Services $ 20,000 $ 20,000 70Fleet InternThis funding would allow the City to partner with Cuesta College's Automotive Technology Intern Program. The intern will assist the fleet program with non‐technical preventative maintenance, vehicle transport, and parts runs. This method will allow mechanics and other Fleet staff to focus on higher level tasks.One‐time Core Services $ 17,991 $ 18,398 71Increased Asphalt and Concrete BudgetThe City is scheduled to accept multiple new residential developments as well as separated bike lanes. This additional infastructure will cause increased maintenance for the Streets program. This budget is used for asphalt and concrete used for street patching and sidewalk repair within the different pavement zones by City staff. Ongoing Core Services $ 60,000 $ 60,000 72Increased budget for Signals and Street Light EquipmentThis will provide for miscellaneous traffic signal and street light equipment to support increasing signal/streetlight maintenance costs with many new installations from new development and high rate of damaged equipment from vehicle collisions. This funding increase provides for at least one additional replacement signal cabinet and controller annually. Current funding is unsustainable to support increased needs with expanded signals in the network.Ongoing Core Services $ 15,000 $ 15,000 73Increased Chemical Costs at the Swim CenterThe Swim Center is a popular City Facility and the increased programming over the years has resulted in higher than budgeted chemical costs. With Covid the Health Department is requiring a higher sanitizer level. To keep up expected increased chemical costs and increased supply requirements additional funds are needed.Ongoing Core Services $ 25,000 $ 25,000 74Increased Contract Funds for Specialized Mechanic ServicesAdditional funding is needed to provide specialized mechanic services while the City's fleet transitions to electric vehicles. Ongoing Core Services $ 50,000 $ 50,000 75Increased Electricity Costs for New Signals and Street LightsThis provides budget for the continued acceptance of privately developed lights and signals associated with new residential developments as well as other increases in light and signal inventory.Ongoing Core Services $ 10,000 $ 10,000 76Increased Misc. Materials and Supplies ‐ need for detail for LRM REOCFacilities maintenance has hitorically overspent in materials and supplies and made up the differance with utilities savings that were a result of efficency projects. As the peak time of day electricity rates significantly increase, the savings historically used to offest these purchases is no longer available.Ongoing Core Services $ 30,000 $ 30,000 77One Time Tools and City uniforms ‐ Mechanic interns These are one time costs associated with the Mechanic Intern program.One‐time Core Services $ 3,000 $ ‐ 78Payment Correction Hwy 227 Signals/Street LightsThis is a one‐time request to correct an error in transitioning the billing for signal/street electrical costs mistakenly billed to Caltrans, instead of the City, during the relinquishment of Highway 227.One‐time Core Services $ 60,000 $ ‐ 79TOTAL 3,863,171$ 3,733,302$ 73Page # 95
E‐4: General Fund (Unique Funding Sources) SOBCsOther Funding Sources SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 1Civic Spark FellowThe CivicSpark fellow will execute waste reduction measures aligned with the vision of the SW&R section and the City’s Climate Action Plan pillar, “Circular Economy”. The fellow will, under supervision by the SW&R Coordinator, create a Municipal Operations Waste Reduction Plan and assist in getting the City certified as a zero‐waste organization. One‐time Climate Action 29,000$ ‐$ 23TIPP Fast 2.0 ‐ Utilize $250k from $2 million restrictedThe TIPP‐FAST program provides expedited Tenant Improvement permits for new businesses. The City is working to offer these permits free of charge for a limited period of time. One‐time Economic250,000$ ‐$ 45Building and Safety Division Streamlining and Succession Planning (1 FTE ‐ Deputy Building Official)This new position will provide supervision to all three programs in the Building and Safety Division (Inspections, Permits, Code Enforcement), and will provide for continuity following the conclusion of the current assignment of the Fire Marshall/Chief Building Official. This request will improve customer service, program development, implementation of performance management and transparency projects, and support for the Construction Board of Appeals. Ongoing Core Services 138,291$ 143,497$ 6Building and Safety Division Streamlining and Succession Planning (Net Cost of Reclassification of Building and Safety Supervisor and Permit Services Coordinator)This SOBC would implement an organizational structure change to align all building permit plan check and permit issuance activities under a single supervisor. This requires reclassification of the Permit Services Coordinator to a Building Permit Services Manager. In addition, the Building and Safety Supervisor position would be reclassified as a Supervising Building Inspector to provide more field resources for inspections and an improved level of customer service in the field.Ongoing Core Services40,000$ 40,000$ 7Development Services Program Capacity Building (1 FTE ‐ Assistant Planner)This request is to convert a current contract position into a regular FTE. The position was originally funded as a contract during the 2019‐21 Financial Plan. The Assistant Planner works at the front counter and responds to e‐mail and phone calls from customers. Although the duty used to be shared by many staff, the workload has grown to where it is far more efficient to have a single planner be the public point of contact for planning and development inquiries.Ongoing Core Services78,844$ 82,983$ 8Development Services Program Capacity Building (1 FTE ‐ Associate Planner)This request is to convert a current contract position into a regular FTE. The position was originally funded as a contract during the 2019‐21 Financial Plan. The Associate Planner manages complex development review and long‐range planning projects. On‐going workload indicates that the position is necessary to maintain appropriate response times on planning applications and will reduce the use of consultants for both long‐range and current planning projects.Ongoing Core Services99,978$ 104,773$ 9Training & Education / Trips & MeetingsThis request will help fund training and education activities that were delayed during the pandemic in FY 20‐21. This request also reflects the training and education (including required certifications) needed for staff hired during FY 20‐21.OngoingCore Services11,700$ 11,700$ 10Building and Safety Division Streamlining and Succession Planning (2 FTE ‐ Building Permit Technicians)Convert two current contract Building Permit Technicians to FTE positions. These regular positions are necessary to accomplish the intake and issuance of building permits and the City has funded the positions under contract for the past two years. Permit technicians provide a critical customer service function by ensuring applications are complete and ready for plan check, and assisting customers with fee estimates and other informational assistance. Ongoing Economic122,507$ 132,619$ Use of $2.0 million restricted funding allocated for tenant improvement Investments (see long term forecast line 39)AB939 (GF): Carryover at Year EndDevelopment Services Resources Offset by Development Review Base Revenue Projection IncreasesKey74Page # 96
Other Funding Sources SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22 FY 22‐23 11Building and Safety Division Streamlining and Succession Planning (software for reporting, performance management, and customer transparency)Software Support, maintenance, and project implementation for: 25 BlueBeam licenses, IG Workforce APPs, Energov License & Regulatory Suite, Socrata Citizen Connect, Energov Decision Engine, Socrata‐Energov Executive Insights, and Energov e‐Review. These software packages will help the Building Division improve customer service and transparency into the permit process by allowing customers to access plan check status and submit plans and plan revisions online. Ongoing Economic46,528$ 39,234$ 12Development Services Program Capacity Building (temp salaries for Engineering Division)The Engineering Development Review Division in Community Development uses temporary salary budget to address two key functions ‐ building permit plan check and surveyor services. The alternative to using temporary staff would be to utilize the County for surveyor services at a significantly increased cost. Temporary staff have also proved helpful with managing peak building permit plan check workload.Ongoing Economic88,206$ 89,408$ 13Housing and Homelessness Major City Goal (1 FTE ‐ Code Enforcement Tech II ‐ 75% Safe Housing, 25% Homelessness Prevention)Request for a regular, full‐time Code Enforcement Technician II to perform safe housing inspections, homelessness prevention, and outreach and education on safe housing. This activity is consistent with 2017 City Council direction provided in relation to code enforcement priorities. At least 25% of staff time will be allocated to eviction protection support ‐ connecting community members with needed services available in the community for rental assistance and landlord‐tenant dispute resoluƟon.Ongoingousing & Homelessne73,882$ 77,281$ 14Housing and Homelessness Major City Goal (1 FTE ‐ Housing and Homelessness Division Manager)This position is necessary to provide management and oversight for a new Housing Policy and Programs section in the Planning Division. The position will supervise the Housing Coordinator, Homelessness Response Manager, and Assistant Planner. This manager will also oversee work of Associate Planner's in the Planning Division working on implementation projects for the City's 6th cycle Housing Element. Ongoingousing & Homelessne124,143$ 124,143$ 15Housing and Homelessness Major City Goal (1 FTE Assistant Planner)This position is necessary to assist with Housing Element Program implementation for the City’s 6th cycle Housing Element. The Assistant Planner will support the rest of the team in the division (including the Housing Policy and ProgramsManager, Homelessness Response Manager, and Housing Coordinator) on high level tasks and work assignments to support implementation of the Major City Goal, including implementation of Housing Element programs.Ongoingousing & Homelessne89,558$ 93,788$ 1617Stormwater InspectorThis position will oversee storm water compliance on all construction sites across the City to remain compliant with storm water permit requirements to inspect construction sites. This position will report to the Supervising Building Inspector and follow the guidance provided in the City's internal Stormwater MOU between operating departments engaged in storm water permit compliance efforts.One‐time Core Services93,506$ 97,945$ TOTAL1,286,144$ 1,037,371$ One‐time Allocation of Development Services Designation Balance75Page # 97
Section F:
Capital Improvement Plan
76 Page # 98
Section F : Capital Improvement Plan
CAPITAL IMPROVEMENT PLAN (CIP)
F‐1: Purpose of CIP
The CIP and its annual implementation of projects is one of the primary functions of local
government.
Through its adopted CIP, the City meets community needs by providing the infrastructure
required for economic vitality, neighborhood wellness, housing, transportation, sustainability,
active and passive recreation, public safety, cleanliness, and other basic amenities.
With each two‐year Financial Plan, the City prepares five‐year CIP program recommendations for
Council consideration and approval. Even though only the first two years are funded within the
Financial Plan, five‐year planning is a best practice and is recommended to achieve objectives of
the Capital Improvement Plan.
The City systematically plans, schedules, and finances capital projects to ensure cost‐
effectiveness and conformance with established policies. Comprehensive policies governing the
development and management of the CIP are set forth in the City’s fiscal policies. All the City’ s
construction projects and equipment expenditures costing $25,000 or more are included in the
Capital Improvement Plan.
A Note on Unprecedented CIP Circumstances. As Council is aware at the writing of this CIP, the
City continues to provide ongoing emergency response associated with the COVID pandemic. As
such, staff, including those who support the CIP, continue to wear multiple hats. In addition to
that unique circumstance, the CIP budget has tripled because of the voters’ passage of Measure
G20, the City’s local sales tax measure. On top of that, the City is receiving funds from the
American Recovery Plan and has the potential to receive additional grant funds for capital
projects. What this means is that there is continued uncertainty, but alongside that is continued
effort by staff to identify additional funds to continue to meet the significant needs of our
community in providing it vital and meaningful infrastructure projects.
F‐2: Types of CIP Projects and Framework Used to Develop Recommendations
To assist the City Manager in developing the recommended CIP for the 2021 ‐23 Financial Plan, a
designated CIP Review Committee comprised of the Assistant City Manager, Deputy City
Manager, Finance Director, Fire Chief, Utilities Director, Parks and Recreation Director, and Public
Works Director, evaluated all departmental requests. Based on prior Council direction and public
input regarding the importance of maintaining existing infrastructure, City staff puts all project
requests in the following three categories.
77 Page # 99
Section F : Capital Improvement Plan
In categorizing projects and recommending them for funding consideration, the CIP Review
Committee engaged in a rigorous ranking and review framework to develop the proposed
projects for both the General Fund and all Enterprise Funds. In general, projects that maintain
existing infrastructure are ranked ahead of asset replacement projects, and asset replacement
projects are ranked ahead of building new assets. It is important to note that generally new assets
are related to Major City Goals or are critical infrastructure associated with development areas.
This “ranking” however is a general guideline and is complemented by the following questions
which were asked and applied equally to all projects as well.
F‐3: Key Questions the CIP Committee Asks About Projects
Asset Maintenance Asset Replacement New Assets
Does the project
address a Measure
G20 Priority?
Does the project address pandemic
response needs (safety, economic
recovery)?
Does the project enhance safety,
resiliency, or fire prevention?
Does the project make good on past
commitments (e.g. previously approved
by paused projects or consistent with
adopted plans)?
Does the project address
core infrastructure
maintenance needs?
Will the community be able to
see, touch, use, the
improvement?
Does the project have positive impacts
toward climate change goals (e.g.
reductions in fossil fuel/energy
consumption or increased carbon
storage with tree plantings)?
Does the project address
diversity, equity, and or
inclusion needs?
78 Page # 100
Section F : Capital Improvement Plan
F‐4: Capital Project Delivery
As mentioned previously, the City’s capital budget has grown significantly because of the local
sales tax measure and the potential for leveraging precious capital budget dollars further with
historic federal government grants.
With this increase in available funds comes a significant growth in proposed General Fund
projects, as well as significant Enterprise Fund Capital Projects as noted in the summaries below.
To “deliver” these projects, staff anticipates that the City may need additional engineering and/or
project delivery staffing resources. Staff is currently analyzing the project staff required to deliver
the projects over both the two ‐year and the five‐ year time horizon. While City staffing levels are
adequate to deliver the current capital program (2019‐21), additional funding from the Local
Revenue Measure (LRM), SB 1 and SB 1090, and increased Parking, Water and Sewer projects,
are expected require additional staffing. Currently, this staffing is not reflected in the SOBC lists
above. Instead, staff has placed a general cost estimate and future expansion of CIP staff
anticipated to be incorporated into the cost of the projects. Staff is working with a consultant
group, Management Partners, to best determine the organizational structure, job types, and
functions and methods of costing to address this “good problem to have”. This consultant group
has performed this service for other agencies, including Midpeninsula Regional Open Space
District when they have experienced a similar circumstance of increased capital budgets, thanks
to revenue measures.
79 Page # 101
Section F : Capital Improvement Plan
80 Page # 102
Section F : Capital Improvement Plan
F‐5: CIP Project Categories
The City categorizes CIP projects into broad functional areas that represent the support for
fundamental local government activities. Projects in support of these categories extend the life
of existing City assets such as streets, bike and pedestrian pathways, parks and play equipment,
bridges, water and sewer infrastructure, trees, and open spaces and much more. In addition to
maintenance of existing assets, there are some aged assets, such as a building or a public
restroom, that may need replacement or substantial remodel. Less frequent but more significant
is design and construction of new projects based on community and Council priorities that
enhance the overall quality of life in the City.
81 Page # 103
Section F : Capital Improvement Plan
F‐6: Funds and Funding Sources
The project revenues for the City and expenditures by asset replacement, maintenance, and new,
and projected staff costs to be added to projects following the Management Partners “ramp up
analysis” can be summarized with this chart.
These revenues and expenditures are made up by a wide variety of funds. As noted, the LRM is
one the most significant contributors. But there are numerous other financial resources that are
brought to bear in funding capital projects.
ID Project Type FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
Sum of 2
Year Total
Sum of 5
Year Total
1 Asset Replacement $27,634,664 $22,686,846 $11,255,001 $2,920,001 $63,182,001 $50,321,510 $127,678,513
2 Annual Asset Maintenance $19,738,490 $23,033,876 $18,692,315 $19,103,830 $17,807,501 $42,822,366 $98,376,012
3 New Asset $13,019,500 $20,243,597 $46,902,000 $67,555,000 $6,265,000 $33,263,097 $153,985,097
4 CIP Project Delivery Aug. $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,500,000 $4,500,000
5 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 $127,906,973 $384,539,622
82 Page # 104
Section F : Capital Improvement Plan
83 Page # 105
Section F : Capital Improvement Plan
84 Page # 106
Section F : Capital Improvement Plan
85 Page # 107
Section F : Capital Improvement Plan
86 Page # 108
Section F : Capital Improvement Plan
F‐7: Grants and Debt
The City’s CIP program, while largely comprised of funds arising from local revenues and impact
fees, also includes funding from grants and for larger projects include debt issuance (such as the
Water Resources Recovery Facility). The City typically receives grant funds from State or Federal
agencies that either offset a burdensome cost for infrastructure needs, advance a positive
environmental or ecological improvement, or stimulate the economy. These grant funds are
categorized into prescriptive or discretionary grants. Prescriptive grants are those grants the City
receives based upon some rule or methodology, such as the City’s population. Discretionary
grants are those grants where the City competes for limited funds to advance a specific project
or a new way of doing business. Some of these discretionary grants are programmed into the
City’s 2021‐23 Financial Plan since some granting agencies require this to even be eligible to
compete for these grant funds. These unsecured discretionary grants are largely programmed
into the City’s transit program for bus replacement needs.
Debt issuance occurs with costly projects that have a longer‐term useful life. The table below
shows how the City might fund large scale significant projects by debt financing them. For
example, although the Palm‐Nipomo Parking Structure is a project managed and funded by the
Parking Fund and its revenue stream associated with fees for service, its debt is secured by the
General Fund. Additionally, the Prado Road Interchange is expected to be a debt financed
project, as are major facility replacements should they arise in the future for various building
reconstruction and/or rehabilitation.
Grants by Project FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
State or Federal Grant $5,634,000 $2,875,000 $2,055,000 $2,025,000 $2,175,000
Emerson Park Amenity Upgrades and
Beautification $2,810,000 $0 $0 $0 $0
Bus Replacements with EV $1,854,000 $1,910,000 $1,965,000 $2,025,000 $2,085,000
Transit Facility EV Charging Infrastructure$715,000$0$0$0$0
Bus Shelter Replacements $105,000 $0 $90,000 $0 $90,000
Bus Wash Replacement $75,000 $450,000 $0 $0 $0
Transit Supervisor ADA EV Van $70,000 $0 $0 $0 $0
Parking Lot Maintenance ‐ Bus Yard $5,000 $500,000 $0 $0 $0
Vault Room Addition Design Study $0 $15,000 $0 $0 $0
Unsecured State or Federal Grant $5,542,320 $6,384,911 $0 $3,200,000$0
Prado Road Bridge & Road Widening $5,542,320 $4,540,000 $0 $0 $0
Prado Road Interchange $0 $1,844,911 $0 $3,200,000 $0
USHA Grant $360,000
Higuera St. Widening ‐ Bridge to Elks &
Fontana to Chumash $360,000
Federal HBP Grant $0$6,000,000$0$0$0
Prado Road Bridge & Road Widening $0 $6,000,000 $0 $0 $0
SLOCOG Grant $0 $0 $0 $6,000,000 $0
Prado Road Interchange $0 $0 $0 $6,000,000 $0
Grand Total $11,536,320 $15,259,911 $2,055,000 $11,225,000 $2,175,000
87 Page # 109
Section F : Capital Improvement Plan
F‐8: CIP Revenue Forecast for General Fund Projects
Project
FY
21/22
FY
22/23
FY
23/24
FY
24/25
FY
25/26
Sum of 2
Year Total
Sum of 5
Year Total
Bonds, Infrastructure Loan (Debt) $0 $0 $37,052,000 $38,650,000 $52,000,000 $0 $127,702,000
Palm ‐ Nipomo Parking Structure $0 $0 $37,052,000 $0 $0 $0 $37,052,000
Prado Road Interchange $0 $0 $0 $38,650,000 $0 $0 $38,650,000
Major Facility Replacements $0 $0 $0 $0 $52,000,000 $0 $52,000,000
Grand Total $0 $0 $37,052,000 $38,650,000 $52,000,000 $0 $127,702,000
ID FY21‐22 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26
1 LRM Cap Budget 17,866,400$ 18,763,050$ 21,089,020$ 21,808,620$ 22,026,560$
2 Replenishment towards reserve 342,850$ 138,450$ 546,880$ 43,180$ 43,690$
3 Capital Reserve Carryover Balance 3,299,000$ 3,641,850$ 3,780,300$ 4,327,180$ 4,370,360$
4 Total Capital Reserve (20%)3,641,850$ 3,780,300$ 4,327,180$ 4,370,360$ 4,414,050$
5 LRM Revenue 18,209,250$ 18,901,500$ 21,635,900$ 21,851,800$ 22,070,250$
6 LRM Capital Total 21,508,250$ 22,543,350$ 25,416,200$ 26,178,980$ 26,440,610$
7
8 LRM 17,866,400$ 18,763,050$ 21,089,020$ 21,808,620$ 22,026,560$
9 GF Contribution 7,362,916$ 7,949,558$ 3,237,912$ 3,201,001$ 3,145,779$
10 GF + LRM Subtotal 25,229,316$ 26,712,608$ 24,326,932$ 25,009,621$ 25,172,339$
11 SB1 918,500$ 964,425$ 983,714$ 1,003,388$ 1,023,456$
12 TOTAL 26,147,816$ 27,677,033$ 25,310,646$ 26,013,009$ 26,195,795$
Long Term Forecast ‐ Capital
88 Page # 110
Section F : Capital Improvement Plan
45%
33%
21%
1%
FY 21/22 CIP by Project Type
Asset Replacement
Annual Asset Maintenance
New Asset
CIP Project Delivery
Augmentation
34%
34%
30%
2%
FY 22/23 CIP by Project Type
Asset Replacement
Annual Asset Maintenance
New Asset
CIP Project Delivery
Augmentation
89 Page # 111
Section F : Capital Improvement Plan
F‐9: CIP Expenditures by Category
CIP Categories FY 21‐22 FY 22‐23
Multimodal Transportation 29% 53%
Environmental Protection 26% 1%
Utility Services 14% 19%
Neighborhood Wellness 9% 3%
Roadway Infrastructure 8% 9%
Recreational Services 3% 7%
Stormwater 2% 2%
Information Technology 2% 1%
Open Space 2% 0%
Facilities 2% 2%
Cultural Services 1% 1%
Staffing 1% 1%
Governance 1% 0%
Fire Safety 0% 1%
Police Protection 0% 0%
ID Project Category FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
Sum of 2
Year Total
Sum of 5
Year Total
1 Multimodal Transportation $17,729,100 $35,281,791 $45,179,000 $70,821,000 $8,027,000 $53,010,891 $177,037,891
2 Environmental Protection $16,020,563 $531,625 $80,000 $80,000 $80,000 $16,552,188 $16,792,188
3 Utility Services $8,374,500 $12,854,000 $11,354,000 $7,238,000 $7,075,000 $21,228,500 $46,895,500
4 Neighborhood Wellness $5,640,000 $1,700,000 $3,934,693 $1,890,000 $8,435,000 $7,340,000 $21,599,693
5 Roadway Infrastructure $4,648,660 $6,064,731 $4,841,258 $3,820,829 $3,817,501 $10,763,391 $23,192,979
6 Recreational Services $1,915,000 $4,430,026 $5,270,000 $20,000 $35,000 $6,345,026 $11,670,026
7 Stormwater $1,312,272 $1,325,000 $1,100,000 $950,000 $1,050,000 $2,637,272 $5,737,272
8 Information Technology $1,112,558 $606,445 $559,864 $2,472,501 $1,582,500 $1,719,003 $6,333,868
9 OpenSpace $1,090,000 $250,000 $925,000 $250,000 $925,000 $1,340,000 $3,440,000
10 Facilities $1,072,501 $1,473,201 $2,705,501 $651,501 $55,537,501 $2,545,702 $61,440,205
11 Cultural Services $642,500 $442,500 $240,000 $240,000 $240,000 $1,085,000 $1,805,000
12 Staffing $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,500,000 $4,500,000
13 Governance $315,000 $230,000 $100,000 $100,000 $100,000 $545,000 $845,000
14 Fire Safety $300,000 $540,000 $315,000 $780,000 $0 $840,000 $1,935,000
15 Police Protection $220,000 $235,000 $245,000 $265,000 $350,000 $455,000 $1,315,000
16 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 $127,906,973 $384,539,622
90 Page # 112
Section F : Capital Improvement Plan
F‐10: CIP Expenditures by Fund – All Funds
ID
Fund with Contributing Funding
Sources FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
Sum of 2
Year Total
Sum of 5
Year Total
1 Sewer Fund $21,013,401 $8,188,483 $9,602,482 $2,858,015 $2,070,745 $29,201,884 $43,733,126
2 Local Revenue Measure $17,353,900 $18,370,550 $21,353,060 $18,868,620 $21,786,560 $35,774,450 $97,732,690
3 Local Revenue Measure $17,353,900 $18,370,550 $21,353,060 $18,868,620 $21,786,560 $35,774,450 $97,732,690
4 Infrastructure Investment Fund $5,662,320 $7,099,911 $0 $3,200,000 $0 $12,762,231 $15,962,231
5 Unsecured State or Federal Grant $5,542,320 $6,384,911 $0 $3,200,000 $0 $11,927,231 $15,127,231
6 Local Revenue Measure $120,000 $0 $0 $0 $0 $120,000 $120,000
7 General Capital Outlay $0 $715,000 $0 $0 $0 $715,000 $715,000
8 Capital Outlay Fund $5,195,596 $8,005,907 $3,155,912 $46,101,829 $54,830,279 $13,201,503 $117,289,523
9 State or Federal Grant $2,810,000 $0 $0 $0 $0 $2,810,000 $2,810,000
10 General Capital Outlay $1,670,596 $425,647 $3,010,912 $1,306,829 $2,685,279 $2,096,243 $9,099,263
11 USHA Grant $360,000 $360,000 $360,000
12 Zone 9 $310,000 $100,000 $100,000 $100,000 $100,000 $410,000 $710,000
13 Transportation Development Act TD $45,000 $45,000 $45,000 $45,000 $45,000 $90,000 $225,000
14 Bonds, Infrastructure Loan (Debt) $0 $0 $0 $38,650,000 $52,000,000 $0 $90,650,000
15 SLOCOG Grant $0 $0 $0 $6,000,000 $0 $0 $6,000,000
16 San Luis Obispo County $0 $1,435,260 $0 $0 $0 $1,435,260 $1,435,260
17 Federal HBP Grant $0 $6,000,000 $0 $0 $0 $6,000,000 $6,000,000
18 Water Fund $2,863,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322 $8,079,251 $18,333,490
19 Transit Fund $2,825,201 $2,878,157 $2,059,910 $2,045,704 $2,185,415 $5,703,358 $11,994,387
20 State or Federal Grant $2,824,000 $2,875,000 $2,055,000 $2,025,000 $2,175,000 $5,699,000 $11,954,000
21 Transit Fund $1,201 $3,157 $4,910 $20,704 $10,415 $4,358 $40,387
22 Parking Fund $1,799,161 $6,731,280 $38,003,694 $376,092 $318,228 $8,530,441 $47,228,455
23 Parking Fund $1,799,161 $6,731,280 $951,694 $376,092 $318,228 $8,530,441 $10,176,455
24 Bonds, Infrastructure Loan (Debt)$0 $0 $37,052,000 $0 $0 $0 $37,052,000
25 OASP Park Fund $1,520,000 $220,000 $250,000 $0 $0 $1,740,000 $1,990,000
26 Parkland Development Impact Fees $1,520,000 $220,000 $250,000 $0 $0 $1,740,000 $1,990,000
27 Whale Rock Fund $885,888 $671,121 $75,000 $1,943,515 $128,301 $1,557,009 $3,703,825
28 SB1 $835,228 $914,731 $941,258 $977,967 $1,014,152 $1,749,959 $4,683,336
29 Public Art Fund $442,500 $442,500 $240,000 $240,000 $240,000 $885,000 $1,605,000
30 Local Revenue Measure $392,500 $392,500 $240,000 $240,000 $240,000 $785,000 $1,505,000
31 General Capital Outlay $50,000 $50,000 $0 $0 $0 $100,000 $100,000
32 Citywide Transportation Impact Fee $310,000 $3,940,000 $60,000 $2,060,000 $60,000 $4,250,000 $6,430,000
33 Transportation Development Impac $310,000 $3,940,000 $60,000 $2,060,000 $60,000 $4,250,000 $6,430,000
34 Major Facility Replacement $100,000 $300,000 $10,000 $146,000 $190,000 $400,000 $746,000
35 General Capital Outlay $100,000 $300,000 $10,000 $146,000 $190,000 $400,000 $746,000
36 SB1186 CASP Certify Fund $85,461 $85,461 $85,461
37 Fleet Replacement Fund $0 $74,000 $155,000 $125,000 $125,000 $74,000 $479,000
38 General Capital Outlay $0 $74,000 $155,000 $125,000 $125,000 $74,000 $479,000
39 Info Tech Replacement $0 $0 $62,000 $1,123,172 $145,500 $0 $1,330,672
40 General Capital Outlay $0 $0 $62,000 $1,123,172 $145,500 $0 $1,330,672
41 Development Fee Fund $0 $78,000 $0 $7,300,000 $0 $78,000 $7,378,000
42 Developer Contribution $0 $78,000 $0 $7,300,000 $0 $78,000 $7,378,000
43 MASP Transportation Impact Fee Fun $0 $529,400 $0 $0 $0 $529,400 $529,400
44 Park Improvement Impact Fee Fund $0 $300,000 $0 $0 $0 $300,000 $300,000
45 Parkland Development Impact Fees $0 $300,000 $0 $0 $0 $300,000 $300,000
46 AASP Impact Fee Fund $0 $130,000 $0 $0 $0 $130,000 $130,000
47 AASP Impact Fee Fund $0 $130,000 $0 $0 $0 $130,000 $130,000
48 Quimby/Parkland‐in‐Lieu Fund $0 $2,875,026 $0 $0 $0 $2,875,026 $2,875,026
49 Parkland Development Impact Fees $0 $2,875,026 $0 $0 $0 $2,875,026 $2,875,026
50 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 $127,906,973 $384,539,622
91 Page # 113
Section F : Capital Improvement Plan
F‐11: CIP Expenditures by Major City Goal
Staff over the next two years will be learning more about what capital projects are responsive
to the MCG to advance Diversity, Equity, Inclusion (DEI).
CIP Exp - All Funds
58%
21%
15%
6%
0%
FY 21/22 CIP Major City Goals
Other
Climate Action,
Open Space and
Sustainable
TransportationHousing and
Homelessness
Economic
Recovery,
Resiliency and
Fiscal Sustainability
92 Page # 114
Section F : Capital Improvement Plan
30%
20%
38%
12%
0%
FY 22/23 CIP Major City Goals
Other
Climate Action,
Open Space and
Sustainable
TransportationHousing and
Homelessness
Economic
Recovery,
Resiliency and
Fiscal Sustainability
93 Page # 115
Section F : Capital Improvement Plan
F‐12: CIP Expenditure by Project Type
ID Row Labels Sum of
2021‐22
Sum of
2022‐23
Sum of
2023‐24
Sum of
2024‐25
Sum of
2025‐26
70
Higuera St. Widening ‐ Bridge to Elks &
Fontana to Chumash $510,000 $0 $0 $0 $0
71 Downtown Safety Enhancements $400,000 $0 $0 $0 $0
72 California & Taft Roundabout $300,000 $2,798,000 $0 $0 $0
73
Water Treatment Plant Major Facility
Maintenance $225,000 $25,000 $50,000 $0 $0
74 Major Facility Replacements $200,000 $300,000 $1,400,000 $400,000 $55,007,000
75 WRRF And Wastewater Collection Shop $150,000 $350,000 $5,500,000 $0 $0
76 Bus Shelter Replacements $105,000 $0 $90,000 $0 $90,000
77 Mid‐Higuera Bypass $100,000 $100,000 $0 $0 $0
78 Bus Wash Replacement $75,000 $450,000 $0 $0 $0
79 Transit Supervisor ADA EV Van $70,000 $0 $0 $0 $0
80
Fire Station 3&4 Remodel Space Study and
Design $25,000 $75,000 $0 $0 $0
81 Lighting Energy Efficiency Retrofits $15,001 $1 $1 $1 $1
82 Fire Station 4 Metal Building Gym Space $0 $0 $90,000 $0 $0
83 Vault Room Addition Design Study $0 $15,000 $0 $0 $0
84 Council Hearing Room TI $0 $130,000 $0 $0 $0
85 Fire Station 1 Gym Space Covering $0 $0 $25,000 $0 $0
86 Downtown Renewal $0 $0 $1,100,000 $0 $0
87 WRRF ‐ Digester Flare Upgrade $0 $100,000 $385,000 $0 $0
88
Mission Plaza Concept Plan
Implementation $0 $1,035,000 $600,000 $0 $6,000,000
89 WRRF ‐ Demolish Old Effluent Structure $0 $0 $50,000 $495,000 $0
90 New Asset $13,019,500 $20,243,597 $46,902,000 $67,555,000 $6,265,000
91
Emerson Park Amenity Upgrades and
Beautification $2,810,000 $0 $0 $0 $0
92
Anholm Neighborhood Greenway Plan
Implementation $2,450,000 $0 $0 $0 $0
93 Development Related Park Improvements $1,520,000 $4,210,026 $5,050,000 $0 $0
94 Palm ‐ Nipomo Parking Structure $850,000 $5,582,000 $39,042,000 $0$0
95
Laguna Lake Dredging and Sediment
Management Project Implementation $840,000 $0 $675,000 $0 $675,000
96 Active Transportation Plan Implementation $550,000 $550,000 $1,600,000 $2,600,000 $2,250,000
97 Prado Road Interchange $500,000 $5,849,571 $0 $63,735,000 $2,235,000
98 PSPS Emergency Power $465,000 $0 $0 $0 $0
99 Wastewater Lift Station Rehabilitation $396,000 $0 $0 $0 $0
100 Open Space Acquisition $250,000 $250,000 $250,000 $250,000 $250,000
101 Downtown Zig‐Zag Lighting $250,000 $0 $0 $0 $0
94 Page # 116
Section F : Capital Improvement Plan
ID Row Labels Sum of
2021‐22
Sum of
2022‐23
Sum of
2023‐24
Sum of
2024‐25
Sum of
2025‐26
102 South Street Median Landscaping $240,000 $0 $0 $0 $0
103 Open SLO $200,000 $0 $0 $0 $0
104
Parks and Rec General Plan
Implementation $200,000 $200,000 $0 $0 $0
105
Electric Vehicle Charging Station at Various
Facilities $175,000 $100,000 $100,000 $100,000 $100,000
106 North Broad Street Neighborhood Park $175,000 $0 $0 $0 $0
107
Recycled Water Tank ‐ SH Line and Pump &
Bioassay Test $150,000 $50,000 $0 $0 $0
108 WRRF Major Maintenance $142,500 $0 $0 $0 $0
109 Development Agreement ‐ City Share ‐ $120,000 $0 $0 $0 $0
110 Transit Facility EV Charging Infrastructure $100,000 $0 $0 $0 $0
111 Banner Arms, Bench Arm Rests, Signs $100,000 $25,000 $25,000 $25,000 $25,000
112 Bob Jones Trail and RRST Solar Lighting $100,000 $1,350,000 $0 $0$0
113 City Facility Energy Infrastructure Plan $100,000 $0 $0 $0 $0
114 Fleet Replacement: Fire $75,000 $0 $0 $780,000 $0
115 Fleet Replacement: Public Works $66,000 $0 $0 $0 $0
116
Recycled Water Broad Street ‐ Tank Farm to
Aerovista $45,000 $1,040,000 $0 $0 $0
117
Parking Enforcement Equipment at Gate
Entry $40,000 $90,000 $0 $0 $0
118
Transportation Monitoring & Modeling
Update $40,000 $115,000 $40,000 $40,000 $40,000
119 Microgrid Pilot $40,000 $0 $0 $0 $0
120 Water Treatment Plant ‐ Tesla Battery Grant $30,000 $0 $0 $0 $0
121 City Hall Lighting $0 $15,000 $120,000 $0 $0
122 Fleet Replacement: CDD $0 $37,000 $0 $0 $0
123
Recycled Water Orcutt Street ‐ Fernwood to
Laurel $0 $0 $0 $25,000 $675,000
124 Development Reimbursement ‐ City Share ‐ $0 $715,000 $0 $0 $0
125 Aquatics New Exercise Equipment $0 $0 $0 $0 $15,000
126 Fleet Replacement: Police $0 $65,000 $0 $0 $0
127 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
128 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
129 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502
95 Page # 117
Section F : Capital Improvement Plan
F‐13: Calendar Year 2021 Anticipated Projects to Start Construction
ID Calendar Year 2021 CIPs Approximate
Total Budget
1 Sinsheimer Hardscape Replacement $135,000
2 Mission Plaza Railing Replacement $80,000
3 Meadow Park Pathway Maintenance $250,000
4 Sinsheimer Irrigation and Drainage $650,000
5 Broad & Leff Culvert Repair $500,000
6 Downtown Paving Repairs 2021 $3,434,000
7 Laguna Lake Dredging 2021 $840,000
8 Parks and Recreation Interior Office Rehabilit $500,000
9 North Broad Street Neighborhood Park $845,000
10 Swim Center Boiler Replacement $85,000
11 City Hall Landing Repair $60,000
12 French Park Parking Lot Maintenance $110,000
13 Curb Ramps at Galleon and Newport $40,000
14 Tank Farm / Orcutt Roundabout Construction $3,600,000
15 Total $11,129,000
96 Page # 118
Section G‐1: Water Fund
Section G:
Enterprise Funds
97 Page # 119
Section G‐1: Water Fund
Water Fund Long‐term Forecast
98 Page # 120
Section G‐1: Water Fund
Section G‐1: Water Fund
The City’s water operations rely on service rate revenue to cover almost all costs for operations and
maintenance, infrastructure replacement, debt service, and payment for general City services provided to
the fund (cost allocation). Taxes, including the Utility User Tax, do not support these services.
Despite the uncertainty created by the Covid‐19 pandemic, the Water Fund’s financial position is currently
stable. At the onset of the Covid‐19 pandemic, and associated stay‐at‐home order and business closures,
the potential impact to the Water Fund was uncertain. The Utilities Department has closely monitored
revenue since March 2020 and, while there has been some shift in usage patterns in residential and
commercial sectors, overall, there has been no significant net impact to Water Fund revenue. 2019‐20
water sales revenue ended the year very near to the original 2019‐20 budget and 2020‐21 is on track to
exceed the original budget, attributed to a slight increase in residential use.
Although the region has experienced lower than average amounts of rainfall this year, the City’s reservoirs
currently store enough water to provide the City with water for over ten years. These secure water
supplies ensure that short‐term droughts do not adversely impact the Water Fund. The health of the
Water Fund will also benefit from improved impact fee and investment revenue budget projection
methodologies, and a new revenue source from Cal Poly.
Revenue
Water Rate Increase
The Water Fund will be requesting a rate increase of 3.5% effective July 1, 2021 and 3.5% effective July 1,
2022. The most recent rate study, conducted in 2018, projected the water rate increase would be 5.5% in
2021 and 5.5% in 2022. The City’s rate consultant recently completed a rate confirmation study to confirm
or modify these rate increase estimates. As a result of additional revenue expected from Cal Poly and
refined investment and impact fee revenue projections, the rate consultant has recommended lower than
previously recommended rate increases.
The recommended rate increases will be subject to a public notification and protest process; and public
hearing scheduled for June 15, 2021. The proposed rates, if adopted, will add increased long‐range
stability and predictability to revenues and rates and are necessary to meet future infrastructure funding
needs.
Water Rate Increases
2021‐22 Proposed 2022‐23 Proposed 2023‐24 Projected
3.5% 3.5% 3.5%
Rate Assistance Program
The Water Fund will be returning to the City Council in June with a more robust rate assistance program.
Proposition 218 does not allow for any water rate charges billed to a customer to be used for anything
but the cost to deliver these services. For this reason, the current rate assistance program, is subsidized
by the City’s General Fund and is very restrictive, allowing very few customers to qualify for the discount.
The new program will be compliant with Proposition 218 because it will be funded by late charges paid by
utilities customers who do not make their payments on time. Late charges are not rates for service so they
99 Page # 121
Section G‐1: Water Fund
are not restricted by Proposition 218. Late charges available to subsidize the rate assistance program
exceed the general fund subsidy so the rate assistance program will be revised to include a larger range
of community members.
Development Impact Fees – Improved Budget Projections
The collection of impact fees is fully dependent on development activity and therefore can vary
significantly from year‐to‐year. Historically, impact fees were budgeted based on the historic lowest
amount collected and adjusted at mid‐year if fee revenues were higher than anticipated. With the
implementation of the Infrastructure Analyst position in the Finance Department, the City has been able
to better project actual impact fee collection based upon upcoming development activity. With this
improved information, the Water Fund has changed its impact fee budgeting methodology to 75% of the
average of the next three years of impact fee projections. This equals an additional $748,200 in budgeted
impact fee revenue in 2020‐21 and an additional $570,400 in 2021‐22. This improved budgeting
methodology for estimating impact fee revenue in advance of collection could serve to mitigate future
rate increases.
Development Impact Fee Methodology
2021‐22 Budget 2022‐23 Budget
Historical Methodology $800,000 $800,000
New Methodology $1,548,200 $1,370,400
Difference $748,200 $570,400
Investment Revenue – Improved Budget Projections
Like impact fees, investment revenue has historically been budgeted very conservatively at $50,000 per
year. Beginning in 2021‐22, the City is revising these projections to align with historical investment
earnings of 2% per year. Using this assumption, the Water Fund is budgeting investment revenue at 2%
of its previous year ending working capital balance. This equals a $354,300 investment revenue budget
increase in 2021‐22 and an increase of $322,300 in 2022‐23. This improved budgeting methodology for
estimating investment revenue in advance of collection could serve to mitigate future rate increases.
Investment Revenue Fee Methodology
2021‐22 Budget 2022‐23 Budget
Historical Methodology $50,000 $50,000
New Methodology $404,300 $372,300
Difference $354,300 $322,300
Cal Poly Resilience & Capacity Payment
The Utilities Department has been working with Cal Poly for nearly two years to renegotiate rate and
capacity agreements with the City. Part of this effort included Operational Resiliency, which compensates
the City for providing the University with source water from a City water supply source for short periods
if the University’s Whale Rock water supply is unavailable. Also part of the rate agreement update, the
Treatment Capacity payment is Cal Poly’s contribution to the Water Treatment Plant upgrade to maintain
the University’s capacity interest in the plant. These agreements are currently being finalized and are
100 Page # 122
Section G‐1: Water Fund
expected to generate an additional $484,4471 of Water Fund revenue in 2021‐22 and an additional
$223,267 each year for the term of the loan.
All Water Fund Revenue
Revenue Category 2021‐22 Budget 2022‐23 Budget
Water Sales $21,399,7812 $22,576,769
Cal Poly – Resilience & Capacity $484,447 $223,267
3
Recycled Water $980,403 $1,034,325
Development Impact Fees $1,548,204 $1,370,485
Other Revenue $301,530 $302,061
Investments $404,300 $372,300
Grants $256,395
Total $25,475,060 $25,979,207
Operating Expenditures
Water Fund operating expenditure budgets are comprised of salaries, employee benefits, and other
operating expenditures such as contract services, chemicals, and electricity. The Water Fund operating
program budgets are summarized below. The summary reflects the operating program base budget
amounts for fiscal years 2021‐22 and 2022‐23.
Significant Operating Budget Changes (SOBCs)
Overall, operating expenditure budgets are changing very little in 2021‐22 and 2022‐23. The Water Fund
is requesting the following budget changes. Detailed SOBC information can be found on the next page.
1 $137,000 annual Operational Resilience payment, $261,180 one-time WTP upgrade design, and $86,267 annual
contribution to WTP upgrade construction debt.
2 Includes base fees, volumetric fees, and Cal Poly sales.
3 $137,000 annual Operational Resilience payment, and $86,267 annual contribution to WTP upgrade construction
debt.
Cost Center/ Program*FY 21‐22 Budget FY 22‐23 Budget
6001 ‐ Water Admin and Eng 1,044,662$ 1,073,767$
6002 ‐ Water Source of Supply 10,390,600$ 10,233,233$
6003 ‐ Water Treatment 3,112,353$ 3,175,196$
6004 ‐ Water Distribution 1,857,650$ 1,910,717$
6005 ‐ Water Resources 448,434$ 465,257$
Total 16,853,699$ 16,858,170$
* Does not include transfers, capital, or debt
SOBC Type 21‐22 22‐23 Total
One‐time 80,000$ 80,000$
Ongoing 147,321$ 135,232$ 282,553$
Total 227,321$ 135,232$ 362,553$
101 Page # 123
Section G‐1: Water Fund
SOBC Description One‐time/
Ongoing
MCG or Core
Services FY 21‐22 FY 22‐23
Utilities ‐ Water
1 Deputy Director ‐ Planning &
Engineering
This position will support the specialized long term needs of the Utilities
department and water and wastewater infrastructure. The work is not new
but the Utilities department sees an increasing need for continual
infrastructure maintenance and replacement, implementation of emerging
technology, and adherence to new and more stringent State and Federal
regulations into the foreseeable future. There has also been an increased
role coordinating with Public Works and Community Development work
efforts, which could include such things as policy, workflow, and practices.
Ongoing Core Services 60,292$ 62,583$
2 Expanded Recruitment Services
Expenses to Augment HR
Expand recruitement beyond Utilities professional agencies including direct
recruitment to persons with applicable certifications. Utilities will also like
to diversify recruitment activities to further Diversity,k Equity, and Inclusion
efforts.
Ongoing DEI 10,000$ 10,000$
3 Utility Billing ‐ Split Cost Center Administrative change to split the Utility Billing program between the water
and sewer funds to better reflect the programs benefit to both funds.Ongoing Core Services ‐$ ‐$
4
Moving Various Budget Items
from the Water Resources to the
Water Administration Cost
Center
Moving public outreach responsibility and budget from Water Resources to
Water Administration.Ongoing Core Services 44,000$ 44,500$
5
Qualtrax Quality Management
System ‐ Implementation and
ongoing
The Water Quality Lab is required by State mandate to comply with new
The Nelac Institute (TNI) regulations by January 2023. Qualtrax software will
meet TNI policy, operating procedure, audit, document control, corrective
actions, Quaility Assurance/Quality Control, and staff demontration of
competency requirements.
Ongoing Core Services 4,250$ 2,250$
6 Velosimo ‐ Springbrook/Cityworks
Integration
Replace the software integration between Springbrook (water and sewer
billing software) and Cityworks (Utilities asset management software).Ongoing Core Services 8,000$ 5,000$
7 Utilities Locator Position Salary‐
Split Cost Centers
Administrative change to change the funding for the Utilities Locator from
the Water Fund to the Water, Sewer, and General Funds to better reflect
the position's benefit to each of the funds. The Utilities Locator is an
existing position responsible for all physical mark‐outs of underground City
utilities: water, sewer, storm sdrains, street light conduits, and fiber optic
conduits.
Ongoing Core Services (43,101)$ (43,101)$
8 Cost of Liquid Oxygen The most recent bid for liquid oxygen was much higher than in the past
partially due to an oxygen shortage as a result of the Covid‐19 pandemic. Ongoing Core Services 54,000$ 54,000$
9 Recycled Water Chemicals
Additional funding for chemicals required for the production of recycled
water are based off of increased chemical costs and use of the material.
These chemicals will likely be significantly reduced or eliminated after the
new facility comes on line and the City receives State approval of the new
Ultraviolet (UV) disinfection process.
Ongoing Core Services 9,880$ ‐$
10 Maximization of Recycled Water
Resources
Fund work related to determining the feasibility and costs of delivering
recycled water to new customers with the intent of maximizing use of this
resource for the beneift of the community. With the WRRF upgrades and
the expansion of the recycled water infrastructure within the City’s Water
Reuse Master Plan Area, the City has an opportunity to deliver surplus
recycled water to additional customers. Ultimately, this work will refine
and document the Utilities Department’s policies on delivery of recycled
water, so that future project plans can be developed with the best
available data.
One‐time Core Services 50,000$ ‐$
11 Filter Media Assessment
The WTP uses anthracite, sand, gravel media to filter water suitable for
drinking. This is a one‐time purchase to have the Water Treatment Plant’s
(WTP) filter media analyzed and the WTP’s current filter media monitoring
program evaluated in FY 21/22. Filter media are porous materials used to
screen out larger particulates from liquids.
One‐time Core Services 20,000$ ‐$
12 Replacement of Controllers on
Filter Effluent Turbidy Meters
The Water Treatment Plant is required by regulatory agencies to have filter
effluent turbidity meters on each filter (4 total). Turbidity is the cloudiness
or haziness of water caused by large numbers of individual particles that
are generally invisible to the naked eye. The measurement of turbidity is a
key test of water quality and water treatment performance. The current
controllers are outdated and no longer supported with parts and service by
the manufacturer. T
One‐time Core Services 10,000$ ‐$
TOTAL 227,321$ 135,232$ KeyWater Fund SOBC Detail:
102 Page # 124
Section G‐1: Water Fund
Capital Projects
Infrastructure maintenance and replacement continues to be a top Water Fund priority. Both the City’s
source water and treated drinking water infrastructure are aging and need to be continually maintained.
The amount of work needed to ensure continued service is high with source water supplied to the City
from reservoirs as far as 50 miles away and over 190 miles of publicly owned drinking water pipelines
inside the community, the majority of which have not been replaced since their original construction. The
Water Fund’s capital improvement program funding requirement is $2,998 in 2021‐22 and $5,215,253 in
2022‐23, as presented in the 2021‐23 Financial Plan.
Continued on next page… KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26
1 Water Fund $2,863,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322
2 Waterline Replacements $730,000 $1,650,000 $100,000 $1,230,000 $3,240,000
3 Point Repair $590,000$0$0$0$0
4 Craig, Christina, Jaycee ‐ Phase 2 $0 $0 $0 $0 $880,000
5 Stenner Canyon Waterline Replacement $0 $0 $0 $0 $80,000
6 Highland ‐ Oakridge to Cuesta $0 $0 $0 $130,000 $1,430,000
7 California Ave ‐ Stafford to Mill $140,000 $1,650,000 $0 $0 $0
8 Highland at UPRR and Cal Poly $0 $0 $0 $0 $850,000
9 Chorro ‐ Highland to Meinecke $0 $0 $100,000 $1,100,000 $0
10 Recycled Water Orcutt Street ‐ Fernwood to Laurel $0 $0 $0 $25,000 $675,000
11 (blank)$0 $0 $0 $25,000 $675,000
12 Fredericks Paving $0 $0 $0 $0 $300,000
13 (blank)$0$0$0$0$300,000
14 Trench Repairs‐ Water $200,000 $200,000 $200,000 $200,000 $200,000
15 (blank) $200,000 $200,000 $200,000 $200,000 $200,000
16 Water Meters and Boxes $143,000 $165,000 $167,500 $171,500 $175,000
17 (blank) $143,000 $165,000 $167,500 $171,500 $175,000
18 Fleet Replacement: Utilities $195,000 $15,000 $0 $207,500 $175,000
19 Waste Water Collections Dump Truck (0840)$0 $0 $0 $57,500
20 Water Distribution F550 Truck‐Utility Bed / Crane (08 $180,000$0$0$0$0
21 Water Distribution Signboard (0613)$15,000 $0 $0 $0 $0
22 Water Distribution Compact Pickups (1011,1012 Dako $0 $0 $0 $0 $100,000
23 Water Distribution Valve turning trailer (1005)$0 $0 $0 $150,000 $0
24 WTP 1/2 ton Crew Cab 4X4 Pickup (1004‐F150)$0 $0 $0 $0 $75,000
25 Water Distribution Trailer (0235)$0 $15,000 $0 $0 $0
26 SGMA GSP $150,000 $150,000 $150,000 $150,000 $150,000
27 (blank) $150,000 $150,000 $150,000 $150,000 $150,000
28 Treatment Major Facilities Maintenance $274,000 $109,000 $109,000 $180,000 $150,000
29 Air Compressor and Dryer Maintenance $36,000 $36,000 $36,000 $0 $0
30 Chemical System Maintenance $33,000 $33,000 $33,000 $0 $0
31 Ozone System Maintenance $125,000 $40,000 $40,000 $0 $0
32 WTP Major Maintenance $0 $0 $0 $180,000 $150,000
33 WTP Roof Repair $80,000 $0 $0 $0 $0
34 IT Replacement $24,498 $13,753 $14,500 $228,917 $30,322
35 City SAN $0$8,146$0$0$0
36 Firewall Replacement $0 $0 $0 $12,713 $0
37 Network Security Upgrade $0 $0 $0 $8,953 $0
38 Network Switching Infrastructure Equipment $0 $0 $0 $29,977 $0
39 Uninterruptible Power Supplies (UPS’s Servers and St $2,503 $0 $0 $1,963 $0
40 Utility Billing System $0 $0 $0 $75,000 $0
41 Virtual Private Network Replace $0$0$0$2,341$0
42 VMware Infrastructure Upgrade $7,875 $0 $0 $0 $15,822
43 VoIP Telephone System $0 $0 $0 $16,510 $0
44 Wireless System Citywide $0 $5,607 $0 $0 $0
45 Motion ERP $0 $0 $14,500 $14,500 $14,500
46 Radios, Mobiles and stations not replaced ‐ EF & PW $0 $0 $0 $55,000 $0
47 Asset Management (Cityworks ‐ Utilities Integration) $14,120 $0 $0 $11,960 $0
48 Water Valve Cover Adjustments $50,000 $30,000 $30,000 $30,000 $30,000
103 Page # 125
Section G‐1: Water Fund
Below is a highlight of the 2021‐23 Water Fund capital projects:
1. Reservoir 2 Cover Replacement. This project will replace the floating cover on the City’s largest
treated water storage tank. This cover has reached its expected useful life and is in need of
replacement. This project will cost $10,000 in 2021‐22 and $950,000 in 2022‐23.
2. California – Stafford to Mill Waterline Project. This project replaces segments of a 16” water
main that supplies water to roughly half of the City. This segment of pipeline runs through the
bridge deck over Highway 101 and has a high consequence of failure. This project will cost
$140,000 in 2021‐22 and $1,650,000 in 2022‐23.
3. Broad Street – Tank Farm to Aerovista Recycled Water Expansion Project. This project will
extend recycled water lines from the intersection of Tank Farm and Broad Streets to Aerovista
where this water can be utilized within the Airport area. This project will cost $45,000 in 2020‐
21 and $1,040,000 in 2021‐11.
4. Water Treatment Plant Infrastructure Renewal Strategy. The renewal strategy will allow plant
staff to prioritize Water Treatment Plant related capital improvement projects for the next
decade. This project will cost $150,000 in 2020‐21.
KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26
50 Water Treatment Plant Major Facility Maintenance $270,000 $180,000 $50,000 $0 $25,000
51 Package Thickener $0 $25,000 $50,000 $0 $0
52 Facility Master Plan $150,000 $0 $0 $0 $0
53 Aluminum Bulk Tank #1 Replacement $50,000 $0 $0 $0 $0
54 Lab TOC Analyzer Replacement $0 $30,000 $0 $0 $0
55 Actiflo Train #2 Mixer Bearing/Gear $0 $35,000 $0 $0 $0
56 Actiflo Poly Blend Units $0 $0 $0 $0 $25,000
57 Transfer Pump CLA‐VAL Re‐build $25,000 $0 $0 $0 $0
58 Cityworks Integration (water)$45,000 $90,000 $0 $0 $0
59 Reycled Water Annual UV Bulb Replacement $0 $0 $10,000 $10,000 $10,000
60 (blank)$0 $0 $10,000 $10,000 $10,000
61 Water Treatment Plant Emergency Power ‐ PSPS $465,000 $0 $0 $0 $0
62 (blank)$465,000 $0 $0 $0 $0
63 Electric Vehicle Charging Station at Various Facilities $37,500 $0 $0 $0 $0
64 Utilities ‐ 879 Morro $37,500 $0 $0 $0 $0
65 Water Treatment Plant ‐ Power Storage Units Tesla Batt $30,000 $0 $0 $0 $0
66 (blank)$30,000 $0 $0 $0 $0
67 Buchon‐Santa Rosa Intersection Improvements $0 $150,000 $0 $0 $0
68 (blank)$0 $150,000 $0 $0 $0
69 Mid‐Higuera Bypass $0 $100,000 $0 $0 $0
70 (blank)$0 $100,000 $0 $0 $0
71 Reservoir Maintenance $50,000 $1,355,000 $1,000,000 $0 $0
72 Wash water tank #1 $40,000 $325,000 $0 $0 $0
73 Edna Tank Recoating $0 $80,000 $1,000,000 $0 $0
74 Reservoir 2 Cover Replacement $10,000 $950,000 $0 $0 $0
75 Recycled Water Tank ‐ SH Line and Pump & Bioassay Te $150,000 $50,000 $0 $0 $0
76 (blank)$150,000 $50,000 $0 $0 $0
77 Water Distribution System Hydraulic Model Update $50,000 $0 $0 $0 $0
78 (blank)$50,000 $0 $0 $0 $0
79 Major Facility Maintenance $0 $7,500 $50,000 $0 $0
80 879 Morro ‐ Roof $0 $7,500 $50,000 $0 $0
81 Recycled Water Broad Street ‐ Tank Farm to Aerovista $45,000 $1,040,000 $0 $0 $0
82 (blank)$45,000 $1,040,000 $0 $0 $0
83 Reservoir 2 Replacement $0 $0 $0 $780,000 $0
84 (blank)$0$0$0$780,000$0
85 Grand Total $2,863,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322
104 Page # 126
Section G‐2: Sewer Fund
Sewer Fund Long‐term Forecast
105 Page # 127
Section G‐2: Sewer Fund
Section G‐2: Sewer Fund
The City’s sewer operations rely on service rate revenue to cover almost all costs for operations and
maintenance, infrastructure replacement, debt service, and payment for general City services provided to
the fund (cost allocation). Taxes, including the Utility User Tax, do not support these services.
Despite the uncertainty created by the Covid‐19 pandemic, the Sewer Fund’s financial position is currently
stable. At the onset of the Covid‐19 pandemic, and associated stay‐at‐home order and business closures,
the potential impact to the Sewer Fund was uncertain. The Utilities department has closely monitored
revenue since March 2020 and, while there has been some shift in usage patterns in residential and
commercial sectors, overall, there has been no net impact to Sewer Fund revenue. The largest impact was
on the Cal Poly campus, where sewer flows were down up to 80% from previous years. 2019‐20 water
sales revenue ended the year very near to the original 2019‐20 budget and 2020‐21 is on track to exceed
the original budget.
The Sewer Fund will benefit from improved impact fee and investment revenue budget projection
methodologies and a new revenue source from Cal Poly.
Revenue
Sewer Rates
The Sewer Fund will be requesting a rate increase of 3.5% effective July 1, 2021 and 3.5% effective July 1,
2022. The most recent rate study, conducted in 2018, projected the sewer rate increase would be 6.5% in
2021 and 6.5% in 2022. The City’s rate consultant recently completed a rate confirmation study to confirm
or modify these rate increase estimates. As a result of additional revenue expected from Cal Poly and
refined investment and impact fee revenue projections, the rate consultant has recommended lower than
previously recommended rate increases.
The recommended rate increases will be subject to a public notification and protest process; and public
hearing scheduled for June 15, 2021. The proposed rates, if adopted, will add increased long‐range
stability and predictability to revenues and rates and are necessary to meet future infrastructure funding
needs.
Sewer Rate Increases
2021‐22 Proposed 2022‐23 Proposed 2023‐24 Projected
3.5% 3.5% 3.5%
Rate Assistance Program
The Sewer Fund will be returning to the City Council in June with a more robust rate assistance program.
Proposition 218 does not allow for any water rate charges billed to a customer to be used for anything
but the cost to deliver these services. For this reason, the current rate assistance program, is subsidized
by the City’s General Fund and is very restrictive, allowing very few customers to qualify for the discount.
The new program will be compliant with Proposition 218 because it will be funded by late charges paid by
utilities customers who do not make their payments on time. Late charges are not “rates” for service so
they are not restricted by Proposition 218. Late charges available to subsidize the rate assistance program
exceed the general fund subsidy so the rate assistance program will be revised to include a larger range
of community members and more details will be provided in June.
106 Page # 128
Section G‐2: Sewer Fund
Development Impact Fees – Improved Budget Projections
The collection of impact fees is wholly dependent on development activity and therefore can vary
significantly from year‐to‐year. Historically, impact fees were budgeted based on historic lowest amount
collected and adjusted at mid‐year if fee revenues were higher than anticipated. With the implementation
of the Infrastructure Analyst position in the Finance department, the City has been able to better project
actual impact fee collection based upon upcoming development activity. With this improved information,
the Sewer Fund has changed its impact fee budgeting methodology to 75% of the average of the next
three years impact fee projections. This equals an additional $783,900 budgeted impact fee revenue in
2020‐21 and an additional $590,200 in 2021‐22. This improved budgeting methodology for estimating
impact fee revenue in advance of collection could serve to mitigate future rate increases.
Development Impact Fee Methodology
2021‐22 Budget 2022‐23 Budget
Historical Methodology $600,000 $600,000
New Methodology $1,383,900 $1,190,200
Difference $783,900 $590,200
Investment Revenue – Improved Budget Projections
Like impact fees, investment revenue has historically been budgeted very conservatively at $50,000 per
year. Beginning in 2021‐22, the City is revising these projections to align with historical investment
earnings of 2% per year. Using this assumption, the Sewer Fund is budgeting investment revenue at 2%
of its previous year ending working capital balance. This equals a $331,100 investment revenue budget
increase in 2021‐22 and an increase of $527,900 in 2022‐23. This improved budgeting methodology for
estimating investment revenue in advance of collection could serve to mitigate future rate increases.
Investment Revenue Fee Methodology
2021‐22 Budget 2022‐23 Budget
Historical Methodology $50,000 $50,000
New Methodology $381,100 $577,900
Difference $331,100 $527,900
Cal Poly Capacity Payment
The Utilities Department has been working with Cal Poly for nearly two‐years to renegotiate its rate and
capacity agreements with the City. The capacity payment is Cal Poly’s contribution to the Water Resource
Recovery Facility upgrade to maintain the University’s capacity interest in the plant. These agreements
are currently being finalized and are expected to generate an additional $243,568 Sewer Fund revenue in
each year going forward.
All Sewer Fund Revenue
107 Page # 129
Section G‐2: Sewer Fund
Revenue Category 2021‐22 Budget 2022‐23 Budget
Sewer Sales $17,539,578 $18,679,651
Cal Poly –Capacity $243,5681 $243,568
Development Impact Fees $1,383,899 $1,190,246
Other Revenue $383,000 $459,350
Investments $381,100 $577,900
Grants $3,469,758
Total $23,500,903 $21,250,715
Operating Expenditures
Sewer Fund operating expenditure budgets are comprised of salaries, employee benefits, and other
operating expenditures such as contract services, chemicals, and electricity. The Sewer Fund operating
program budgets are summarized below. The summary reflects the operating program base budget
amounts for fiscal years 2021‐22 and 2022‐23.
Significant Operating Budget Changes (SOBC)
Overall, operating expenditure budgets are changing very little in 2021‐22 and 2022‐23. The Sewer Fund
is requesting $309,898 in SOBCs in 2021‐22 and $424,952 in 2022‐23. These requests include;
1. Data processing services for asset management and control systems.
2. Contract services for laboratory analysis and biosolids handling
3. Additional budget for electricity at the WRRF beginning in 2022
Detailed SOBC information can be found on the next page.
1 Cal Poly WRRF design cost divided by three years. This will increase to $472,533 in 2023‐24 when Cal Poly begins
paying its contribution to the construction loan.
Cost Center/ Program*FY 21‐22 Budget FY 22‐23 Budget
6101 ‐ Wastewater Admin and Eng 1,240,769$ 1,275,995$
6102 ‐ Wastewater Collection 1,185,053$ 1,227,154$
6103 ‐ Environmental Programs 247,695$ 257,771$
6104 ‐ Water Resource Recovery 3,983,953$ 3,868,407$
6105 ‐ Utilities Revenue 531,870$ 550,964$
6106 ‐ Water Quality Lab 731,253$ 741,791$
Total 7,920,593$ 7,922,083$
* Does not include transfers, capital, or debt
SOBC Type 21‐22 22‐23 Total
One‐time 57,517$ 11,865$ 69,382$
Ongoing 252,381$ 413,087$ 665,468$
Total 309,898$ 424,952$ 734,850$
108 Page # 130
Section G‐2: Sewer Fund
SOBC Description One‐time/
Ongoing
MCG or Core
Services FY 21‐22 FY 22‐23
Utilities ‐ Sewer
1 Deputy Director ‐ Planning &
Engineering
This position will support the specialized long term needs of the Utilities
department and water and wastewater infrastructure. The work is not new
but the Utilities department sees an increasing need for continual
infrastructure maintenance and replacement, implementation of emerging
technology, and adherence to new and more stringent State and Federal
regulations into the foreseeable future. There has also been an increased
role coordinating with Public Works and Community Development work
efforts, which could include such things as policy, workflow, and practices.
Ongoing Core Services $ 75,365 $ 78,229
2 Expanded Recruitment Services
Expenses to Augment HR
Expand recruitement beyond Utilities professional agencies including direct
recruitment to persons with applicable certifications. Utilities will also like
to diversify recruitment activities to further Diversity,k Equity, and Inclusion
efforts.
Ongoing DEI $ 10,000 $ 10,000
3 Utility Billing ‐ Split Cost Center Administrative change to split the Utility Billing program between the water
and sewer funds to better reflect the programs benefit to both funds.Ongoing Core Services
4
Pretreatment Program Software ‐
LINKO ‐ Implementation and
ongoing lincense and fees
Software will allow Environmental Programs to transition from paper to
electronic records.Ongoing Core Services $ 21,000 $ 7,000
5
Qualtrax Quality Management
System ‐ Implementation and
ongoing
The Water Quality Lab is required by State mandate to comply with new
The Nelac Institute (TNI) regulations by January 2023. Qualtrax software will
meet TNI policy, operating procedure, audit, document control, corrective
actions, Quaility Assurance/Quality Control, and staff demontration of
competency requirements.
Ongoing Core Services $ 12,750 $ 6,750
6 Verizon Monthly Data Services Administrative change to move cell phone data charges from the cost
allocation to operational budgets.Ongoing Core Services $ 19,200 $ 19,200
8 Velosimo ‐ Springbrook/Cityworks
Integration
Replace the software integration between Springbrook (water and sewer
billing software) and Cityworks (Utilities asset management software).Ongoing Core Services $ 8,000 $ 5,000
9 Compliance and Surveillance
Sampling
Increase Environmental Programs surveillance monitoring for the five
significant industrial users. Ongoing Core Services $ 10,000 $ 10,000
10 Maintenance of Dual Software
Systems during WRRF Upgrade
New process control system software at the WRRF will require additioanl
funding during construction. One‐time Core Services $ 8,065 $ 11,865
11 WRRF Contract Services ‐
Biosolids
The new biosolids handling process, designed to reduce odors at the Water
Resource Recovery Facility (WRRF) will require additional hauling costs from
the City’s biosolids contractor beginning in 2022‐23.
Ongoing Core Services $ 22,586
12
National Pollutant Discharge
Elimination System (NPDES)
Permit Analysis
Contracted laboratory testing prices have remained constant since January
2017. The existing lab contract will expire January 2022 and discussions
with vendors have suggested increases in the cost of analyisis contract
services in the range of 15%. Award of this contract will be through a
competetive bid process.
Ongoing Core Services $ 34,270 $ 34,270
13 NPDES Studies and Whole
Effluent Toxicity
New water quality regulations require Species Sensitivity Screening to
establish a representative aquatic species for the discharge requirements in
the WRRF's NPDES permit. The City is required to conduct the analysis and
present the results to the Central Coast Water Board (CCWB). The results
will become the requirements for the new discharge limitations. This
request is for testing and increased sample frequency for establishing the
Toxicity Requirements and ongoing required effluent toxicity sampling.
Sampling frequency may increase from annually to monthly. The City will
work with the CCWB for the most reasonable requirements.
Ongoing Core Services $ 36,654 $ 44,910
14 Utilities Locator Position Salary‐
Split Cost Centers
Administrative change to change the funding for the Utilities Locator from
the Water Fund to the Water, Sewer, and General Funds to better reflect
the position's benefit to each of the funds. The Utilities Locator is an
existing position responsible for all physical mark‐outs of underground City
utilities: water, sewer, storm sdrains, street light conduits, and fiber optic
conduits.
Ongoing Core Services $ 25,142 $ 25,142
15 WRRF Electrical
Electrical costs at the WRRF are expected to increase due to new processes
coming online in 2022‐23. Some savings may be realized when the new
processes are optimized, and operations become normalized after
construction.
Ongoing Core Services $ 150,000
16 COVID‐19 Wastewater Analysis
Wastewater surveillance for COVID‐19 is used as a complementary dataset
to be combined with clinical testing results and is an ongoing work effort.
Sampling is focused at Cal Poly, the immediate surrounding area, and the
WRRF influent. The data is shared with Cal Poly and the County.
Wastewater measurements have been documented by the CDC and EPA
studies to trend 4 to 10 days ahead of clinical results. This surveillance
allows the City to concentrate on select neighborhoods and Cal Poly
campus to partner on communication and corrective actions to limit the
spread of COVID‐19.
One‐time Core Services $ 49,452
TOTAL $ 309,898 $ 424,952 Key109 Page # 131
Section G‐2: Sewer Fund
Capital Projects
Infrastructure maintenance and replacement continues to be a top Sewer Fund priority. Based upon aging
wastewater infrastructure, the Sewer Fund needs to continue replacement of sewer mainlines to reduce
inflow and infiltration into the collection system, reduce scheduled maintenance, increase capacity to
allow for development, and reduce wastewater overflows. The Sewer Fund continues work on the Water
Resource Recovery Facility (WRRF) upgrade and is also preparing for the costs of near‐term projects
including the potential relocation of the Wastewater Collection shop as it is projected to be impacted by
the City’s Prado Road Overpass project. The Sewer Fund’s capital improvement program funding
requirement is $21,013,401 in 2021‐22 and $8,188,483 in 2022‐23, as presented in the 2021‐23 Financial
Plan. KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26
1 Sewer Fund $21,013,401 $8,188,483 $9,602,482 $2,858,015 $2,070,745
2 Wastewater Collections System Improvements $1,571,000 $5,345,000 $2,475,000 $1,410,000 $1,685,000
3 Foothill Sewer Siphon $0 $0 $0 $0 $200,000
4 Johnson, Buchon, etc trench & pipe bursting $135,000 $1,485,000 $0 $0 $0
5 Serrano, Bressi, etc trench & pipe bursting $0 $0 $25,000 $1,275,000$0
6 Verde, Luneta, etc trench/pipe bursting $1,276,000 $0 $0 $0 $0
7 Murray, Chorro, Meineke $0 $500,000 $0 $0 $0
8 Islay, Henry, Sierra Way $25,000 $1,825,000 $0 $0 $0
9 Taft, Hathaway, Phillips, Buena Vista, Loomis $0 $25,000 $1,225,000$0$0
10 San Jose, Ramona, Monte Vista, Califronia $0 $25,000 $1,225,000 $0 $0
11 Broad, Murray, Chorro $0 $0 $0 $135,000 $1,485,000
12 Morro, Mill, Santa Rosa $135,000 $1,485,000 $0 $0 $0
13 Water Meters and Boxes $143,000 $165,000 $167,500 $171,500 $175,000
14 (blank)$143,000 $165,000 $167,500 $171,500 $175,000
15 WRRF Major Maintenance $207,500 $520,000 $400,000 $125,000 $125,000
16 Coating Maintenance $15,000 $0 $0 $0 $0
17 Headworks Grit Pump $0 $175,000 $0 $0 $0
18 Rebuild Influent Storm Pumps $0 $0 $0 $75,000 $75,000
19 Screenings Washer Auger $0 $0 $350,000 $0 $0
20 UV Bulb Replacement (annual replacement)$0 $0 $50,000 $50,000 $50,000
21 Headworks Grit Piping and Blowers $0 $95,000 $0 $0 $0
22 Lab Improvements $0 $150,000 $0 $0 $0
23 Chain Link Fence Extension $47,500 $0 $0 $0 $0
24 Security Lighting $95,000 $0 $0 $0 $0
25 Cityworks Integration $50,000 $100,000 $0 $0 $0
26 IT Replacement $87,838 $19,358 $14,982 $254,015 $35,745
27 City SAN $0 $8,146 $0 $0 $0
28 Firewall Replacement $0 $0 $0 $13,357 $0
29 Network Security Upgrade $0 $0 $0 $8,521 $0
30 Network Switching Infrastructure Equipment $0 $0 $0 $50,379 $0
31 Uninterruptible Power Supplies (UPS’s Servers an $3,324 $0 $0 $2,942 $0
32 Utility Billing System $0 $0 $0 $75,000 $0
33 Virtual Private Network Replace $0 $0 $0 $13,378 $0
34 VMware Infrastructure Upgrade $8,114 $0 $0 $0 $20,630
35 VoIP Telephone System $0 $0 $0 $13,396 $0
36 Wireless System Citywide $0 $11,212 $0 $0 $0
37 Motion ERP $0 $0 $14,500 $14,500 $14,500
38 Radios, Mobiles and stations not replaced ‐ EF &$0 $0 $0 $55,000 $0
39 IT Pipes Inspection Software and Licenses $58,750 $0 $0 $0 $0
40 Asset Management (Cityworks ‐ Utilities Integrat $17,650 $0 $0 $7,060 $0
41 Public Surveillance Cameras ‐citywide 5 year repl $0 $0 $482 $0 $615
42 Public Surveillance Citywide Cameras Storage ad $0 $0 $0 $482 $0
43 Sewer Maintenance Hole Cover Adjustments $85,000 $25,000 $25,000 $25,000 $25,000
Continued on next page...
110 Page # 132
Section G‐2: Sewer Fund
Below is a highlight of the 2021‐23 Sewer Fund capital projects and their proposed expenditures:
1.WRRF Project. The WRRF will continue construction through the 2021‐23 Financial Plan with
project completion estimated in late 2023, early 2024. This is an ongoing project with a total
construction budget of $140,000,000.
2.Calle Joaquin Lift Station Replacement. This project will replace the aging lift station and sewer
line crossings at San Luis Obispo Creek and Highway 101. The new station will meet the demands
of the Froom annexation and new development in the Laguna area. Recent bids received for this
project exceeded the budget and staff will return to Council with a request to rebid with modified
scope and additional funding in Fall of 2021.
3.Airport Gravity Mainline. This project will replace the existing airport lift station with a gravity
sewer. The new mainline will serve existing customers, recent annexations, and future
development in the airport area. This project will cost $2,020,000 in 2021‐22.KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26
45 Trench Repairs‐ Sewer $25,000 $25,000 $25,000 $25,000 $25,000
46 (blank) $25,000 $25,000 $25,000 $25,000 $25,000
47 Point Repairs ‐ Wastewater Collections System $50,000 $50,000 $0 $0 $0
48 (blank)$50,000 $50,000 $0 $0 $0
49 WRRF ‐ Digester Flare Upgrade $0 $100,000 $385,000 $0 $0
50 (blank)$0 $100,000 $385,000 $0 $0
51 Fleet Replacement: Utilities $120,000 $505,000 $60,000 $102,500 $0
52 Sewer Hydrocleaner (0718)$0 $475,000 $0 $0 $0
53 Sewer WWCL Tilt‐Trailer (0616)$0 $30,000 $0 $0 $0
54 Sewer WRRF Compact Pickup (0851)$0 $0 $0 $45,000 $0
55 WRRF F550 Flatbed with crane (0611‐F550 Diesel $80,000 $0 $0 $0 $0
56 Waste Water Collections Dump Truck (0840)$0 $0 $0 $57,500 $0
57 Sewer WWCL Portable Pump (0826)$0 $0 $60,000 $0 $0
58 WRRF Forklift (0622)$40,000 $0 $0 $0 $0
59 Wastewater Lift Station Rehabilitation $2,416,000 $70,000 $100,000 $0 $0
60 Airport Lift Station $2,020,000 $0 $0 $0 $0
61 New Buckley Lift Station $396,000 $0 $0 $0 $0
62 Silver City Lift Station $0 $70,000 $100,000 $0 $0
63 WRRF ‐ Demolish Old Effluent Structure $0 $0 $50,000 $495,000 $0
64 (blank)$0 $0 $50,000 $495,000 $0
65 Inflow/Infiltration Reduction $200,000 $250,000 $250,000 $250,000 $0
66 (blank)$200,000 $250,000 $250,000 $250,000 $0
67 Electric Vehicle Charging Station at Various Facilities $37,500 $0 $0 $0 $0
68 Utilities ‐ 879 Morro $37,500 $0 $0 $0 $0
69 Major Facility Maintenance $0 $7,500 $50,000 $0 $0
70 879 Morro ‐ Roof $0 $7,500 $50,000 $0 $0
71 Infrastructure Renewal Strategy Report Update $0 $330,000 $100,000 $0 $0
72 Flow Study $0 $330,000 $100,000 $0 $0
73 WRRF And Wastewater Collection Shop $150,000 $350,000 $5,500,000 $0 $0
74 (blank)$150,000 $350,000 $5,500,000 $0 $0
75 WRRF Upgrade $15,920,563 $426,625 $0 $0 $0
76 Construction $11,069,088 $22,335 $0 $0 $0
77 Construction Management $3,088,281 $257,357 $0 $0 $0
78 Office Engineering $1,235,313 $102,943 $0 $0 $0
79 Program Management $527,881 $43,990 $0 $0 $0
80 Grand Total $21,013,401 $8,188,483 $9,602,482 $2,858,015 $2,070,745
111 Page # 133
Section G‐2: Sewer Fund
4. Mainline Replacements. Replacements on Morro St, Mill St and Santa Rosa St along with
replacement of mainlines in the capacity constrained areas of Sierra Way, Henry and Islay St.
These projects will cost $1,571,000 in 2021‐22 and $5,345,000 in 2022‐23.
5. Inflow and Infiltration. Ongoing funding for voluntary sewer lateral replacements and mainline
repairs to reduce the Inflow and Infiltration (I/I) of stormwater into the wastewater collection
system. This project will cost $200,000 in 2021‐22 and $250,000 in 2022‐23.
112 Page # 134
Section G‐3: Parking Fund
Section G-3: Parking Fund
Parking Fund Summary and Outlook
Fiscal Impacts of COVID to the Parking Fund
The Parking Fund has been heavily relied upon to support economic recovery efforts during both
FY 2019-20 and FY 2020-21. Parking initiatives in support of economic recovery have included
the deferral of previously approved parking rate increases, the waving of fees for meters and
structures (through the 3rd Quarter of FY 2020-21), development of free holiday offerings to
incentivize the customer base in the downtown, loss of revenue generating on-street parking to
parklets and courtesy pick-up zones, and the development of a tiered based response to the State
guidelines.
The fiscal outlook for the next two years shows the Parking Fund’s working capital balance having
significant reductions because of lower-than-expected revenues, planned expenditures associated
with the Palm-Nipomo Parking Structure project, the continued loss of high rate of return meter
spaces for parklets (approximately $350,000 a year), and a series of needed parking structure
annual maintenance projects. Demand for long term parking spaces has reduced significantly due
to impacts from the pandemic and continue to trend in a lower occupancy caused by new health
guidelines.
Staff are proposing a multi-part strategy, including changes in staffing and operating, to save
money (reduce expenditures) alongside increases to revenues to cover the required debt service
ratio for planned structure expansion. The continued pandemic impacts and project
development/timeline of the Palm-Nipomo Parking Structure necessitate several significant
program changes and Council’s feedback.
Anticipated FY 2020-21 Year End Need for General Fund One Time Support to Meet Debt Ratio
Requirements
The prolonged impacts from the pandemic and the support efforts provided to the Downtown have
strained the Parking Fund. End of year unreserved working capital is projected to be $12.6 million,
well short of the Budget Supplement projections and below the ratio requirements for debt service.
This debt service ratio coverage is a critical component for future funding and could jeopardize
the Fund’s ability to receive an I-Bank loan. As such, based on current revenue and expenditure
projections, the Parking Fund as of the writing of this report is anticipating the year end need for
$1.23 million to support the Fund’s ability to meet debt service requirements for the FY 2020-21.
Strategic Initiatives to Address the Parking Fund Health
Addressing the Parking Fund’s long-term health requires action with the 2021-23 Financial Plan
adoption. Proposed strategies focus on expenditure changes (shown as SOBCs below) to generate
revenues via increased enforcement as well as the reduction of contract expenditures as staff are
utilized for multiple functions in the structures.
113 Page # 135
Section G‐3: Parking Fund
Revenue
The revenues needed to support future operations and projects of the Parking Fund has been
evaluated based on current rates and fee structures, analysis of current parking asset uses, and
effects on future revenue potential to provide rate adjustment recommendations. Consistent with
previously adopted policies and considering impacts associated with the pandemic, the Parking
Fund’s proposed revenue changes assume a conservative annual growth rate over the entire
projection period.
The Fund is recommending multi-year rate increases over the next five years in accordance with
the Fund’s periodic rate adjustment plan. The proposed systemwide rate increases in FY 2021-22
will help offset impacts from the pandemic and recovery efforts as well as begin to cover debt
services associated with the Palm-Nipomo project.
The Program is recommending a combination of long-term revenue enhancement strategies
focused on three areas: the parking garages, on-street and lot parking, and enforcement.
Parking Garages
1. Eliminate 1st Hour of Free Parking in Parking Garages
2. Implement Deferred Rate Increase in Parking Garages (Approved for July 2020)
3. Reduce Parking Garage Max Daily Rate
On-Street & Lot Parking
4. Implement Paid Parking in Upper Monterey Area
5. Implement Paid Parking in Railroad Square
6. Implement Deferred Rate Increase for On-Street and Lot Parking (Approved for July
2020)
7. Expand Enforcement Hours from 6pm to 9pm for On-Street and Lot Parking
8. Transition to Tier-Based Pricing for On-Street and Lot Parking
Enforcement
9. Expand Enforcement Hours from 6pm to 9pm
10. Increase Penalty Schedule for Safety Violation Fine Amounts
11. Implement and Establish Residential Parking Permit District in Old Town and Upper
Monterey Area Districts
12. Enforcement of the Old Town Parking District
114 Page # 136
Section G‐3: Parking Fund
Proposed Potential Revenue Strategies
These changes to parking operations are estimated to be sufficient in meeting existing debt service
ratios and in preparing to cover the projected debt service costs for the Palm-Nipomo parking
structure that are projected to begin in FY 2025. Staff have been proactive, meeting with the
Downtown SLO – Parking and Access Committee to outline current and future needs of the Fund
and gain community feedback regarding the proposed revenue enhancements. The Parking Fund
long-term forecast also includes rate increases for parking meters and parking structures in FY
2023-24 and again in FY 2025-26. Historically, rate increases have occurred every second to third
fiscal year in order to keep revenues above expenses and ensure there is sufficient reserves for
future capital funding.
Long Term Forecast
The Baseline Long-term Forecast below includes funding the construction of the Palm-Nipomo
Structure with anticipated construction starting in FY 2023-24. Even without this major project,
the annual working capital balance would continue to show a reduction due to expenditures
exceeding annual revenue; primarily due to major reinvestments in rehabilitating the structures
and extending their useful lives. The proposed revenue enhancement strategies and Significant
Operating Budget Changes (SOBCs), pending City Council approval, are included in the second
115 Page # 137
Section G‐3: Parking Fund
long-term forecast table below. The inclusion of the proposed revenue enhancements forecast a
healthier and more stable fund in the out years after construction of Palm-Nipomo begins.
Baseline Long-Term Forecast Without Proposed Changes
1 PARKING FUND LONG‐TERM FORECAST
2 Out‐Year Fund Projections
3 ACTUAL Mid‐Yr Revised Projected Projected Projected Projected Projected Projected
4 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27
5 Revenues
6 Service Charges
7 Parking Meter Collections:
8 Lots 83,961 76,700 122,400 107,600 134,500 128,600 159,000 163,100
9 Streets 1,047,023 821,300 1,437,100 1,454,500 1,800,100 1,754,700 2,150,600 2,202,900
10 Parking Structure Collections 837,513 200,000 1,228,000 1,258,000 1,614,600 1,589,800 2,349,800 2,407,800
11 Long‐Term Parking Revenues 688,941 431,300 772,100 792,600 828,900 805,500 824,500 843,300
12 Lease Revenues 485,737 363,200 459,200 460,900 471,200 466,100 470,700 476,400
13 Parking In‐Lieu Fees*15,405 20,600 20,600 20,600 20,600 20,600 20,600 20,600
14 Credit Card Merchant Fees (117,851) (47,700) (106,700) (107,500) (113,400) (110,300) (112,600) (115,500)
15 Total Service Charges 3,040,729 1,865,400 3,932,700 3,986,700 4,756,500 4,655,000 5,862,600 5,998,600
16 Investment and Property Revenues 546,118 78,500 75,000 66,200 58,900 27,000 27,500 18,400
17 Fines and Forfeitures 703,686 297,300 520,400 543,900 565,700 548,700 563,800 576,200
18 Other Revenues 21,706 7,400 30,000 30,700 34,400 31,800 32,600 33,400
19 Total Revenues 4,312,239 2,248,600 4,558,100 4,627,500 5,415,500 5,262,500 6,486,500 6,626,600
20 Expenditures
21 Operating Programs
22 Operating Expenses 1,917,466 2,255,100 2,315,400 2,368,900 2,409,700 2,621,900 2,789,100 2,837,300
23 General Government (CAP)537,277 710,200 869,900 869,900 869,900 869,900 869,900 869,900
24 Total Operating Programs 2,454,743 2,965,300 3,185,300 3,238,800 3,279,600 3,491,800 3,659,000 3,707,200
25 Capital Improvement Plan Projects 1,176,812 1,161,500 904,200 1,034,300 38,003,700 376,100 318,200 306,500
26 Palm‐Nipomo Phase 1 ‐ ‐ 850,000 5,642,000 ‐ ‐ ‐ ‐
27 Palm‐Nipomo Phase 2 (Debt Service)‐ ‐ ‐ ‐ ‐ 2,130,500 2,099,600 2,068,700
28 Debt Service 856,793 855,500 855,300 851,600 852,100 850,600 848,800 745,600
29 Total Expenditures 4,488,348 4,982,300 5,794,800 10,766,700 42,135,400 6,849,000 6,925,600 6,828,000
30 Other Sources (Uses)
31 Operating Transfers In ‐ 1,230,000 ‐ ‐ ‐ ‐ ‐ ‐
32 Operating Transfers Out (227,770) (256,400) (235,200) (235,200) (235,200) (235,200) (235,200) (235,200)
33 Proceeds from Debt Financing ‐ ‐ ‐ ‐ 37,052,000 ‐ ‐ ‐
34
35 Total Other Sources (Uses)(227,770) 973,600 (235,200) (235,200) 36,816,800 (235,200) (235,200) (235,200)
36
37 Revenues Over/(Under) Expenses (403,879) (1,760,100) (1,471,900) (6,374,400)96,900 (1,821,700) (674,300) (436,600)
38
39 Working Capital, Beginning of Year 16,491,539 15,002,605 13,242,505 11,770,605 5,396,205 5,493,105 3,671,405 2,997,105
40 Adjustment for LT Accruals (1,085,056)
41 Working Capital, End of Year 15,002,605 13,242,505 11,770,605 5,396,205 5,493,105 3,671,405 2,997,105 2,560,505
42 Reserve 490,949 593,060 637,060 647,760 655,920 698,360 731,800 741,440
43 Retirement Contribution 321,596 68,400 72,700 75,000 72,700 72,900 73,000 73,200
44 Unfunded Liabilities 132,187 170,500 170,500 170,500 170,500 170,500 170,500 170,500
47 Unreserved Working Capital 14,511,656 12,649,445 11,133,545 4,748,445 4,837,185 2,973,045 2,265,305 1,819,065
48 Debt Service Coverage Ratio (130%)290% 130% 233% 235% 323% 152% 188% 195%
49 *Parking In‐Lieu Fees used for parking structure debt service
2021‐23 Financial Plan
116 Page # 138
Section G‐3: Parking Fund
Long-Term Forecast with Proposed Revenue Enhancement Strategies and SOBCs
Proposed Parking Fund Rate Structure
The Parking Fund was previously approved by Council to implement a rate increase for parking
meter rates, parking structures rates, and related permit costs effective July 1, 2020; however, the
Fund elected to defer the rate increase due to the COVID-19 pandemic. The forecast proposes that
the deferred hourly rate increases take effect July 1, 2021. The increase will be coupled with a
reduction to the daily max rate in the structures and a hold on present rates for long term permit
programs. The reduction and hold on rates are being proposed because the Fund wants to promote
the participation, particularly by downtown employees, in the long-term parking programs and
appropriate parking behavior. The Fund forecast also includes out-year rate increases that are
shown in the table below but are not part of Council action for this Financial Plan. The Fund will
1 PARKING FUND LONG‐TERM FORECAST
2 Out‐Year Fund Projections
3 ACTUAL Mid‐Yr Revised Projected Projected Projected Projected Projected Projected
4 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27
5 Revenues
6 Service Charges
7 Parking Meter Collections:
8 Lots 83,961 76,700 122,400 107,600 134,500 128,600 159,000 163,100
9 Streets 1,047,023 821,300 2,009,700 2,196,600 2,675,800 2,630,300 3,201,400 3,253,700
10 Parking Structure Collections 837,513 200,000 1,977,400 2,007,400 2,551,400 2,526,500 3,473,900 3,531,900
11 Long‐Term Parking Revenues 688,941 431,300 898,900 919,400 955,700 932,300 951,300 970,100
12 Lease Revenues 485,737 363,200 459,200 460,900 471,200 466,100 470,700 476,400
13 Parking In‐Lieu Fees*15,405 20,600 20,600 20,600 20,600 20,600 20,600 20,600
14 Credit Card Merchant Fees (117,851) (47,700) (106,700) (107,500) (113,400) (110,300) (112,600) (115,500)
15 Total Service Charges 3,040,729 1,865,400 5,381,500 5,605,000 6,695,800 6,594,100 8,164,300 8,300,300
16 Investment and Property Revenues 546,118 78,500 75,000 66,200 66,600 43,300 54,300 55,800
17 Fines and Forfeitures 703,686 297,300 702,800 726,300 748,100 731,100 746,200 758,600
18 Other Revenues 21,706 7,400 30,000 30,700 34,400 31,800 32,600 33,400
19 Total Revenues 4,312,239 2,248,600 6,189,300 6,428,200 7,544,900 7,400,300 8,997,400 9,148,100
20 Expenditures
21 Operating Programs
22 Operating Expenses 1,917,466 2,255,100 2,315,400 2,368,900 2,409,700 2,621,900 2,789,100 2,837,300
23 General Government (CAP)537,277 710,200 869,900 869,900 869,900 869,900 869,900 869,900
24 Total Operating Programs 2,454,743 2,965,300 3,185,300 3,238,800 3,279,600 3,491,800 3,659,000 3,707,200
25 Capital Improvement Plan Projects 1,176,812 1,161,500 949,200 1,149,300 38,003,700 376,100 318,200 306,500
26 Palm‐Nipomo Phase 1 ‐ ‐ 850,000 5,582,000 ‐ ‐ ‐ ‐
27 Palm‐Nipomo Phase 2 (Debt Service)‐ ‐ ‐ ‐ ‐ 2,130,500 2,099,600 2,068,700
28 Debt Service 856,793 855,500 855,300 851,600 852,100 850,600 848,800 745,600
29 Total Expenditures 4,488,348 4,982,300 5,839,800 10,821,700 42,135,400 6,849,000 6,925,600 6,828,000
30 Other Sources (Uses)
31 Operating Transfers In ‐ 1,230,000 ‐ ‐ ‐ ‐ ‐ ‐
32 Operating Transfers Out (227,770) (256,400) (235,200) (235,200) (235,200) (235,200) (235,200) (235,200)
33 Proceeds from Debt Financing ‐ ‐ ‐ ‐ 37,052,000 ‐ ‐ ‐
34 Other:
35 SOBC ‐ Additional Enforcement Staff ‐ ‐ (203,500) (210,900) (212,500) (213,600) (214,600) (214,600)
36 SOBC ‐ New Maintenance Staff ‐ ‐ (69,600) (144,900) (146,300) (147,800) (149,300) (149,300)
37 SOBC ‐ Elimination of Service Contracts ‐ ‐ 240,500 327,000 335,200 343,600 352,200 361,000
38 Total Other Sources (Uses)(227,770) 973,600 (267,800) (264,000) 36,793,200 (253,000) (246,900) (238,100)
39
40 Revenues Over/(Under) Expenses (403,879) (1,760,100)81,700 (4,657,500)2,202,700 298,300 1,824,900 2,082,000
41
42 Working Capital, Beginning of Year 16,491,539 15,002,605 13,242,505 13,324,205 8,666,705 10,869,405 11,167,705 12,992,605
43 Adjustment for LT Accruals (1,085,056)
44 Working Capital, End of Year 15,002,605 13,242,505 13,324,205 8,666,705 10,869,405 11,167,705 12,992,605 15,074,605
45 Reserve 490,949 593,060 637,060 647,760 655,920 698,360 731,800 741,440
46 Retirement Contribution 321,596 68,400 72,700 75,000 72,700 72,900 73,000 73,200
47 Unfunded Liabilities 132,187 170,500 170,500 170,500 170,500 170,500 170,500 170,500
50 Unreserved Working Capital 14,511,656 12,649,445 12,687,145 8,018,945 10,213,485 10,469,345 12,260,805 14,333,165
51 Debt Service Coverage Ratio (130%)290% 130% 424% 447% 573% 223% 273% 285%
52 *Parking In‐Lieu Fees used for parking structure debt service
2021‐23 Financial Plan
117 Page # 139
Section G‐3: Parking Fund
recommend these increases as part of future financial plans but are showing them now to provide
advanced notice of intent to pursue additional rate increases.
Parking Rate Changes Current
Parking Rates
Proposed*
Effective
July 1, 2021
Proposed**
Effective
July 1, 2023
Proposed**
Effective
July 1, 2025
Parking Meters (Hourly)
Tier 1 (Super Core) $1.75 $2.00 $2.50 $3.00
Tier 2 (Core) $1.50 $1.75 $2.50 $3.00
Tier 3 (Outlying Areas) $1.00 $1.25 $1.50 $2.00
Parking Structures
Hourly/Daily Max $1.25/$12.50 $1.50/$6.00 $1.75/$7.00 $2.00/$8.00
Monthly/Quarterly $85/$255 $85/$255 TBD TBD
DROP (Overnight parking
for DT residents) $125/$375 $125/$375 TBD TBD
Permits
Residential Parking Permit $20 $20 $25 $25
DT Residential Parking
Permit $20 $20 $25 $25
10‐Hour Meter Permit $60 $60 TBD TBD
Other
Parking Structure
Validations $75 for 100 $90 for 100 $100 for 100 $100 for 100
*Previously approved by Council to take effect July 1, 2020 but was deferred due to COVID
pandemic.
**Not part of the action items for Council but are included in the Long‐Term Forecast and will be
addressed in future budget discussions.
The Fund is also proposing expansions to certain parking programs to help fund the one-time and
on-going costs for the Palm-Nipomo parking structure that is scheduled to begin construction in
FY 2023-24.
Operating Expenditures
Parking Fund operating expenditure budgets are comprised of salaries, employee benefits, and
other operating expenditures such as contract services and utilities. The Parking Fund operating
program budgets are summarized below. The summary reflects the operating program base budget
amounts for fiscal years 2021-22 and 2022-23.
118 Page # 140
Section G‐3: Parking Fund
Significant Operating Budget Changes Summary
The proposed budget includes a series of Significant Operating Budget Changes necessary to
address daily needs of the Parking operations for the City. These enhancements are necessary to
ensure that the Parking Fund can effectively expand operations to cover the Fund’s debt service
even during times of economic uncertainty.
Parking Enforcement Staff (3 FTE) –The additional enforcement staff will be
responsible for evening enforcement in the downtown area, patrolling the parking
structures, and nighttime parking district enforcement. The costs of the new positions will
be offset by the additional revenue generated from enforcement and by the elimination of
the parking structure security contract.
Parking Maintenance Staff (2 FTE) –These new positions would be responsible for
landscaping, cleaning / janitorial services, and minor maintenance and repairs throughout
the City’s parking facilities. The cost of these positions will be offset by the elimination of
the landscaping contract and the structures and parking lots cleaning contracts.
Reduction of Contracted Services – Elimination of service contracts including
landscaping, cleaning, and security as these responsibilities will be taken on in-house by
the new positions being added to the Parking Division. Power washing services currently
provided by contracted service providers will continue to be contracted out due to the
specialty equipment required to perform the work. This will result in an annual savings.
Parking Fund Capital Improvement Plan Program
The 5-Year Forecast continues reinvestments in the City’s parking assets with annual funding for
the rehabilitation of the three parking structures to extend their useful lives. Project budget
Cost Center/Program* 21‐22 Budget 22‐23 Budget
5101 ‐ Parking Admin 2,230,518$ 2,267,863$
5102 ‐ Parking Enforcement 288,131$ 297,443$
5103 ‐ Parking Structures 368,806$ 380,647$
5104 ‐ Parking Lots and Streets 91,094$ 96,291$
Total 2,978,549$ 3,042,245$
* Does not include capital, transfers, or debt.
Parking Fund SOBCs 21‐22 22‐23 Total
Ongoing
Parking Enforcement (3 FTE Additions)220,927$ 230,947$ 451,874$
Parking Maintenance (2 FTE Additions)138,187$ 144,392$ 282,578$
Revenue and Contract Services Reductions Offset (558,123)$ (645,114)$ (1,203,237)$
Total (199,008)$ (269,775)$ (468,784)$
119 Page # 141
Section G‐3: Parking Fund
estimates in the capital plan forecast include inflationary adjustments assuming a moderate
increase in material costs over time.
Multi-Space Pay Stations
In FY 2020-21, the Parking Fund began replacement of the single-space on-street parking meters
with multi-space pay stations. The replacement is a shift from the original plan to do a one-for-one
replacement of the single-space meters. The multi-space stations reduce the amount sidewalk
clutter in the downtown area while offering a better user experience. The Fund is pursuing mobile
payment as a complementary payment option to the multi-space stations.
Condition Assessment and Management Plan (CAMP)
The City completed a CAMP report of all parking structures in 2 018. That CAMP report estimated
that approximately $10 million would need to be allocated over the 10 years to maintain and
enhance the structures at adequate levels. The Parking Fund has already allocated $900,000 in FY
2019-20 and FY 2020-21 to implement the recommendations in the CAMP report. The proposed
CIP budget, as part of the 2021-23 Financial Plan, has continued funding for the CAMP report
implementation by earmarking $900,000 in FY 2021-22, FY 2022-23, and FY 2023-24 for
structural repairs, waterproofing and deck sealing maintenances. This work is imperative to
guaranteeing the Fund is properly maintaining its resources which will help secure a lower interest
rate on future loans. The Parking Fund was also approved to perform a door package upgrade on
one of the elevators at the Marsh Street parking structure. The upgrade is needed to address the
significant increase in issues with the elevator including the entrapment of customers within the
elevator cart.
Palm-Nipomo Parking Structure
The Palm-Nipomo parking structure construction cost is currently estimated at $43.5 million with
initial work beginning in FY 2021-22. A $6.5 million contribution from working capital for phase
1 that will occur in FY 2021-22 and FY 2022-23 and $37 million from bond issuance for phase 2
of construction that will begin in FY 2023-24. The phase 2 of construction is estimated to take 18-
24 months with the structure opening for operation at the beginning of FY 2025-26. These amounts
are subject to change based upon revised project estimates and final ratio of capital outlay versus
debt financing amounts.
The following additional projects are proposed in the Plan:
1. Gateless Parking Structure Upgrades – Includes $40,000 in FY 2021-2022 and $90,000
in FY 2022-2023 to invest in new technology to improve accessibility and operations of
the existing parking structures. Upgrades will provide a more customer service focused
experience when utilizing parking. Upgrades are intended to change the ongoing
perception that parking in the downtown structures is difficult and parking is limited.
2. Fleet Replacement – In FY 2022-23, $75,000 will be used to purchase a new license plate
recognition equipped hybrid enforcement vehicle to replace two existing internal
combustion vehicles that have aged out and are becoming problematic. This project assists
120 Page # 142
Section G‐3: Parking Fund
the department with meeting the Electrification Masterplan goals set forth. $55,000 in FY
2022-23 will be used to replace an existing maintenance truck with similar truck or van.
Hybrid and electric truck or van options are being pursued as a viable alternative.
3. HVAC Air Handler Replacement – In FY 2021-22, $5,000 and in FY 2022-23, $25,000
will be used to replace the existing air handler for the Parking Services office located on
the first floor of the Marsh Street parking structure.
4. Misc. Information Technology – Capital projects that have associated Parking Fund costs
will occur in both financial plan years.
Row Labels
Sum of
2021‐22
Sum of
2022‐23
Sum of
2023‐24 Sum of 2024‐25
Sum of
2025‐26
Sum of 5
Year Total
Parking Fund $1,799,160 $6,731,279 $38,003,693 $376,091 $318,227 $47,228,450
Palm ‐ Nipomo Parking Structure $850,000 $5,582,000 $37,052,000 $0 $0 $43,484,000
Adobe Removal $150,000 $0 $0 $0 $0 $150,000
CM Services $0 $150,000 $2,550,000 $0 $0 $2,700,000
Garage Construction $0 $0 $34,502,000 $0 $0 $34,502,000
PG&E Relocation $700,000 $0 $0 $0 $0 $700,000
Site Clearing and Preparation $0 $5,432,000 $0 $0 $0 $5,432,000
871 Marsh Street Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 $1,450,000
842 Palm Parking Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 $1,450,000
919 Palm Street Structure Maintenance $100,000 $100,000 $100,000 $50,000 $50,000 $400,000
Parking Enforcement Equipment at Gate Entry $40,000 $90,000 $0 $0 $0 $130,000
(blank)$40,000 $90,000 $0 $0 $0 $130,000
Major Facility Maintenance $5,000 $25,000 $0 $0 $0 $30,000
HVAC Air Handler at Parking Services $5,000 $25,000 $0 $0 $0 $30,000
IT Replacement $4,160 $4,279 $14,693 $76,091 $18,227 $117,450
City SAN $0 $2,036 $0 $0 $0 $2,036
Fire Radio Receive Site at Fire Station #4 $0 $0 $0 $0 $0 $0
Firewall Replacement $0 $0 $0 $5,380 $0 $5,380
Motion ERP $0 $0 $6,500 $6,500 $6,500 $19,500
Network Security Upgrade $0 $0 $0 $3,605 $0 $3,605
Network Switching Infrastructure Equipment $0 $0 $0 $10,825 $0 $10,825
Public Surveillance Cameras ‐citywide 5 year replace, 1/3 of cameras $0 $0 $8,193 $0 $10,446 $18,639
Public Surveillance Citywide Cameras Storage add redundancy $0 $0 $0 $8,193 $0 $8,193
Radios, Mobiles and stations not replaced ‐ EF & PW Only $0 $0 $0 $20,000 $0 $20,000
Uninterruptible Power Supplies (UPS’s Servers and Storage) $820 $0 $0 $981 $0 $1,801
Virtual Private Network Replace $0 $0 $0 $669 $0 $669
VMware Infrastructure Upgrade $3,340 $0 $0 $0 $1,281 $4,621
VoIP Telephone System $0 $0 $0 $19,938 $0 $19,938
Wireless System Citywide $0 $2,243 $0 $0 $0 $2,243
Fleet Replacement: Public Works $0 $130,000 $37,000 $0 $0 $167,000
919 Generator (Gen‐919)$0 $0 $0 $0 $0 $0
Parking 1/2 ton Pickup (0813)$0 $55,000 $0 $0 $0 $55,000
Parking Compact Pickup (0854)$0 $0 $37,000 $0 $0 $37,000
Parking Scooters (1403,1404 Go‐4's) replc with 1 LPR equiped vehiclectup $0 $75,000 $0 $0 $0 $75,000
Grand Total $1,799,160 $6,731,279 $38,003,693 $376,091 $318,227 $47,228,450
121 Page # 143
Section G‐4: Transit Fund
Transit Fund Long‐term Forecast
FY2020‐21 FY2021‐22 FY2022‐23 FY2023‐24 FY2024‐25 FY2025‐26
Beginning Fund Balance $2,157,999 $3,264,339 $2,780,629 $1,743,483 $1,606,672 $1,289,978
Federal ‐ 5307 Operating 3,357,757$ 1,594,103$ 1,462,600$ 1,566,500$ 1,613,495$ 1,637,697$
Federal ‐ 5307 Capital 1,384,000$ 1,384,000$ ‐$ ‐$ ‐$ ‐$
State TDA (Transportation Development Act)1,806,688$ 1,973,103$ 1,995,274$ 2,015,227$ 2,038,250$ 2,058,633$
State ‐ APCD (Air Pollution Control District)‐$ 606,000$ ‐$ ‐$ ‐$ ‐$
State ‐ SB1 105,000$ ‐$ 90,000$ ‐$ ‐$ ‐$
State ‐ LCTOP (Low Carbon Transit Operations Program)255,000$ ‐$ 450,000$ 200,000$ ‐$ ‐$
State ‐ Other ‐$ 140,000$ ‐$ ‐$ ‐$ ‐$
PG&E Grant 109,000$
Farebox Revenue 61,410$ 150,000$ 200,000$ 240,000$ 250,000$ 260,000$
Cal Poly Agreement 150,000$ ‐$ ‐$ ‐$ ‐$ ‐$
State ‐ SB1 ‐$ ‐$ ‐$ 125,000$ 90,000$ 150,000$
State ‐ LCTOP ‐$ ‐$ ‐$ 225,000$ 250,000$ 250,000$
State ‐ Other ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
Cal Poly Agreement ‐$ 650,000$ 1,981,000$ 1,981,000$ 1,981,000$ 1,981,000$
TOTAL $7,119,855 $6,606,206 $6,178,874 $6,352,727 $6,222,745 $6,337,330
Operating Expenditures ‐ Purchased Transportation $2,794,565 $2,837,720 $2,895,950 $2,979,964 $3,039,228 $3,100,012
Operating Expenditures ‐ Fuel & Maintenance $602,500 $602,500 $610,000 $610,000 $621,000 $621,000
Operating Expenditures ‐ Overhead/Admin $590,267 $594,989 $599,749 $604,547 $609,383 $614,258
Operating Expenditures ‐ Cost Allocation $226,183 $230,707 $235,321 $240,027 $244,828 $249,724
TOTAL $4,213,515 $4,265,916 $4,341,020 $4,434,538 $4,514,439 $4,584,995
Capital Annual ‐ Recurring
Bus Shelter Replacement (Locations Below)1 ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
Madonna Rd @ Madonna Plaza 15,000$
South Street @ Parker Street ‐$ 15,000$ ‐$ ‐$ ‐$ ‐$
S Higuera @ Prado Rd ‐$ 15,000$ ‐$ ‐$ ‐$ ‐$
Foothill Blvd @ Narrow Ct, A Side ‐$ 15,000$ ‐$ ‐$ ‐$ ‐$
Foothill Blvd @ Narrow Ct, B side ‐$ 15,000$ ‐$ ‐$ ‐$ ‐$
LOVR @ Valle Vista, B Side ‐$ 15,000$ ‐$ ‐$ ‐$ ‐$
LOVR @ Valle Vista, A Side ‐$ 15,000$ ‐$ ‐$ ‐$ ‐$
Bus Shelter Replacement (Location TBD)2 ‐$ ‐$ ‐$ 90,000$ ‐$ 90,000$
TOTAL ‐$ 105,000$ ‐$ 90,000$ ‐$ 90,000$
Capital One‐Time
Bus Replacement with Electric Vehicles ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
Replace Bus 754 and 7551 1,800,000$ ‐$ ‐$ ‐$ ‐$ ‐$
Replace Bus 857 and 8581 ‐$ 1,854,000$ ‐$ ‐$ ‐$ ‐$
Replace Bus 859 and 8602 ‐$ ‐$ 1,910,000$ ‐$ ‐$ ‐$
Replace Bus 861 and 8622 ‐$ ‐$ ‐$ 1,965,000$ ‐$ ‐$
Replace Bus 1264 and 13652 ‐$ ‐$ ‐$ ‐$ 2,025,000$ ‐$
Replace Bus 963 and 11672 ‐$ ‐$ ‐$ ‐$ ‐$ 2,085,000$
Bus Yard Parking Lot Maintenance2 ‐$ 5,000$ 500,000$ ‐$ ‐$ ‐$
EV Bus Infrastructure1 ‐$ 715,000$ ‐$ ‐$ ‐$ ‐$
Bus Wash Replacement2 ‐$ 75,000$ 450,000$ ‐$ ‐$ ‐$
Vault Room Addition Study 2 ‐$ ‐$ 15,000$ ‐$ ‐$ ‐$
Replace Supervisor ADA Van with EV2 ‐$ 70,000$ ‐$ ‐$ ‐$ ‐$
TOTAL 1,800,000$ 2,719,000$ 2,875,000$ 1,965,000$ 2,025,000$ 2,085,000$
TOTAL Expenditures & Obligations: $ 6,013,515 $ 7,089,916 $ 7,216,020 $ 6,489,538 $ 6,539,439 $ 6,759,995
Total Revenue over Expenditures $1,106,340 ($483,710) ($1,037,146) ($136,811) ($316,694) ($422,665)
Ending Balance $3,264,339 $2,780,629 $1,743,483 $1,606,672 $1,289,978 $867,313
1 Funding Secured and Project is programmed to move forward
2 Funding Not Secured and Project will not move forward unless funding is received.
Fund Review/Analysis
Special Revenue Fund
Transit (5201)
SLO Transit is the local fixed‐route public transit operation for the City of San Luis Obispo. SLO Transit operates 15 vehicles at peak period, along eight routes within the 23 square
miles of the city limits of San Luis Obispo and California Polytechnic State University.
Fund and/or Revenues
Expenditures & Obligations
Expected Revenues (Typically received or highly likely to obtain)
Operating Annual Expenditures
Discretionary Grants or Funding Yet to be Secured
122 Page # 144
Section G‐4: Transit Fund
Section G‐4: Transit Fund
The Transit Enterprise fund closes out 2019‐21 Financial Plan with a balanced budget. The budget
is balanced because of two reasons: federal funds continue to be provided to assist transit during
the pandemic and the program relies upon purchased transportation (with its contract operator)
and as a result with reduced services come reduced costs. At present, the Fund holds
approximately $2.7 Million in Working Capital. Of that amount, $539,498 has been identified as
the operating reserve for the Fund to continue to weather volatility in revenues while pursuing
electrification of its fleet of buses. The fiscal outlook for the next five years and the uncertainty
in future ridership post pandemic (affecting all public transportation services) has resulted in
restrained projections.
At this time, revenues are projected to sufficiently keep pace with escalating costs. However,
any significant changes, such as the expansion of the transit program, will require additional
funding sources. During the second year of this Financial Plan, the Transit program will issue a
Request for Proposals to obtain a new contract for Transit Operations & Maintenance (also
referred to as purchased transportation). These costs for fore cast purposes have been projected
to be like the current contract cost.
Revenue
Federal and State Funds
Federal 5307 Transit funds are 40% of the total operating budget of the Transit Fund and are
projected to continue to remain the same or increase during this two‐year Financial Plan. State
Transit Development Act (TDA) funds are also 40% of the total operating budget, and are
projected to have a modest increase, most of which is attributed to supplemental SB1 funds.
Local revenue from cash paid fares, pass sales, and the anticipated new Cal Poly Service
Agreement could account for 20% of the total operating budget. Staff are currently negotiating
with Cal Poly on a long‐term successor agreement for continued transit services. Local revenue
from cash fares will likely be impacted from the effects of the pandemic and potentially continued
lower ridership. The chart below is a summary of revenue allocations and actual dollar amounts
will be included in the June budget.
Transit Operating Revenues Allocation
Federal 5307 Fund 40%
State TDA 40%
Local Revenues 20%
123 Page # 145
Section G‐4: Transit Fund
Proposed Rate Increases
On April 4, 2017, the Council adopted the transit fare and interior bus advertisement rates which
included annual rate increases. This is critically important to achieve the SLO Transit’s 20% Local
Revenue requirements.
To better support SLO Transit’s customers during the pandemic, in between March 2020 and July
2020 SLO Transit went fare‐free and delayed the planned July 2020 rate increases. This action
better protected both SLO Transit customers and staff. In July 2021, delayed rate increases will
go into effect. Regular Pass cost will increase from $38 to $40 and Senior and Disabled Pass cost
will increase from $18 to $20.
Operating Expenditures
As mentioned, reduced usage of public transit during the pandemic did and has resulted in
lowered expenditures. It is uncertain how this will return to “normal” after the pandemic; given
the purchased transportation model expenditures for the Operations and Maintenance contract
are anticipated to increase to align with revenues and transit demands. Staff will be conducting
a Request for Proposal on this contract during year one of the Financial Plan and will update the
impacts of that new agreement with the Budget Supplement in 2022‐23.
As negotiations are continuing with Cal Poly, to develop a new Transit Service Reimburse
Agreement the impacts of that should be identified by the June review of this Fund. While both
agencies desire a long‐term agreement to service Cal Poly’s transit needs many unknowns exists
concerning recovery from the pandemic and how quickly transit riders return to transit. Part of
that conversation is also focused on the capital investment nee ded to “green the fleet” for Transit
and the costs of that which must be shared amongst all users.
Significant Operating Budget Changes (SOBCs)
The Transit Fund is only requesting one SOBC as outlined below:
Expense Type* 21‐22 Budget 22‐23 Budget
Salaries and Benefits 358,181$ 372,314$
Services and Supplies 3,146,633$ 3,201,050$
Other OpEx 379,000$ 379,000$
Grand Total 3,883,814$ 3,952,364$
* Does not include capital, transfers, or debt.
Transit Fund SOBCs 21‐22 22‐23
One‐time
Transit Innovation Study 50,000$ ‐$
Prepare a Transit Innovation Study to provide a blueprint to guide
the transition to increased service frequency, electrification and
feasibility of no‐fare service for students, seniors, and others as
called for in CAP Connected Communities tasks 4.2, 4.3, and 4.4.
Total 50,000$ ‐$
124 Page # 146
Section G‐4: Transit Fund
Capital Projects
Capital projects continue to be a challenge for the Transit Fund which is highly reliant on
discretionary grants. Proposed projects are limited to those that are essential and that can be
funded from grants. Of those projects, the replacement of diesel buses with electric vehicles are
the highest priority as well as the installation of necessary charging infrastructure to support
electric vehicles. And while original discretionary grant awards have been less than previously
anticipated, the 5307 Federal funds, because of the previous infusion of CARES Act funds, can
use these funds to off‐set any shortfalls. Even then, a modest amount of unreserved transit fund
balance will still be required to complete the project.
Capital Improvement Projects 2021‐22 2022‐23
Bus Shelter Replacement $ 105,000 $ ‐
Bus Replacement with Electric Vehicles $ 1,854,000 $ 1,910,000
Bus Yard Parking Lot Maintenance2 $ 5,000 $ 500,000
EV Bus Infrastructure1 $ 715,000 $ ‐
Bus Wash Replacement2 $ 75,000 $ 450,000
Vault Room Addition Study2 $ ‐ $ 15,000
Replace Supervisor ADA Van with EV2 $ 70,000 $ ‐
TOTAL $ 3,214,000 $ 2,375,000
125 Page # 147