HomeMy WebLinkAbout11/15/2022 Item 6a, Elke - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 10, 2022
TO: Mayor and Council
FROM: Brigitte Elke, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: Item 6a – 2023-25 Financial Plan – Setting the Stage and the Strategic Scan
The Council Agenda Report for Item 6a, scheduled on November 15, 2022, mentioned
that, due to its length and wealth of information, the staff presentation would be distributed
ahead of the City Council meeting. The early distribution should allow the public and the
City Council the opportunity to review the information before the meeting.
The presentation (Attachment A) includes the “Strategic Scan” material that was first
introduced as part of the financial planning process in FY 2018 -19. The scan contains
important statistical information pertaining to social, economic, and environmental factors.
It addresses issues pertinent to the delivery of City services and provides important
context for decision making through the budget process. The scan is not exhaustive of all
data relevant to the City and its program and service delivery but is intended to illustrate
indicators that should be considered when establishing the new two-year budget.
Attachment:
A – Setting the Stage and Strategic Scan PowerPoint
Setting the Stage for the 2023-25
Financial Plan
November 15, 2022
1
Recommendations
2
1.Receive and discuss the following framework in preparation for the 2023-25 goal-setting and
Financial Plan process:
a.FY 2022-23 1st quarter results
b.2021-23 Adopted Major City Goals
c.General Plan and Climate Action Plan Update
d.Setting the stage framework including core services and a scan of strategic indicators
for all major funds.
e.Introduce a recommended approach to the budgeting and management of the Capital
Improvement Plan (CIP)and receive Council feedback (Attachment D)
2.Adopt a resolution entitled,“A Resolution of the City Council of the City of San Luis Obispo,
California,approving an amendment to the 2022-23 Budget Allocation”to appropriate $40,000 of
the City’s General Fund Unassigned Fund Balance into operating budget to contribute to the
Housing Trust Fund and correction to the 2022-23 Appropriations Limit.
3
Community Priorities Survey
www.slocity.org/OpenCityHall
November 14th-December 15th
Community's opportunity to help shape the City's Major City
Goals
Community Forum
Ludwick Community Center
January 26, 2023, 6PM
Community's opportunity to help mold how the City will
implement the potential Major City Goals
Purpose of Setting the Stage and the Strategic Scan
6
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic
Scan
Other/
Conclusion
❑Take a look at the financial standing after Q1 of the current fiscal year
❑Provide updates on the current Major City Goals and other strategic goals
❑Review the City’s core services
❑Provide context on how new goals and initiatives fit in with the City’s
responsibility to deliver core services
❑Help Council determine strategic priorities for the 2023-25 Financial Plan
❑Provide a Strategic Scan of important statistical information that provides
important context for decision making through the budget process
7
2022-23 1st Quarter
Financial Review
Where are we
now
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
8
2022-23 1st Quarter Financial Review
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
22 Million in
Revenues
(YTD)
$34 Million in
OpEx (YTD)
3 MCG Tasks
Completed in
Q1
4 CIP
Projects
Completed in
Q1
General Fund Q1 Status
•Revenues and expenditures for all funds are track as anticipated
•Current salary savings due to vacancies and expired SLOCEA agreement
9
What does the current picture mean for financial planning?
The upside
Strong Q1 sales and transaction tax remittals
Record high TOT continues into Q1
The downside
Consumer confidence is declining, and many signs point to a slowdown in tourism activity and
consumer spending
Cannabis tax and fee budget will need to be adjusted at mid -year
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
General Plan & Other
Strategic Plan Updates
10
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
General Plan Programs Summary 11
LAND USE ELEMENT - 73
CIRCULATION ELEMENT - 69
HOUSING ELEMENT - 65
NOISE ELEMENT - 8
CONSERVATION AND OPENS SPACE ELEMENT - 68
SAFETY ELEMENT - 34
PARKS AND RECREATION ELEMENT - 41
WATER AND WASTEWATER ELEMENT -38
396
Total Programs
•The City’s General Plan is composed of a “building block” hierarchy of goals, objectives,
policies, and programs.
•Monitoring the City’s progress in implementing General Plan programs assists with decision
making in ongoing pursuit of the adopted plan and implementation of the City’s vision.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Total % complete % ongoing
LAND USE ELEMENT 73 26%74%
CIRCULATION ELEMENT 69 10%87%
HOUSING ELEMENT 65 15%85%
NOISE ELEMENT 8 25%75%
CONSERVATION AND OPENS SPACE ELEMENT 68 15%85%
SAFETY ELEMENT 34 21%79%
PARKS AND RECREATION ELEMENT 41 12%85%
WATER AND WASTEWATER ELEMENT 38 8%89%
Climate Action Plan
12
Nearly every foundational action in the 2020
Climate Action Plan is implemented or is in
progress
Work to date has reaffirmed the 2020 Climate
Action Plans goals and actions and historic federal
and state funding will enable rapid implementation
of the next implementation phase
2023-27 Work Program, which includes the 2022
Climate Action Progress Report will be presented
to Council on December 13, 2022 and is available
for public review on the City website.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Other Major Strategic Efforts Underway
DEI Strategic Plan Economic Development
Strategic Plan Homelessness Strategic Plan
13
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Currently being scoped
In Progress
Released for RFP
Tentative May 2023
Actively drafting
Present to Council February 2023
Parking and Access Plan
Spring of 2023
2021-23 Major City Goals
14
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
15
Economic Recovery, Resiliency and Fiscal
Sustainability
•Many new initiatives that came out of the pandemic
•A “pulse” survey executed to gather data to help develop the Economic Development
related DEI initiatives
•Added a 3rd fulltime Ambassador downtown (1.2a-6)
•TBID Mid-week promotion which resulted in 421 qualified stays
•Most Major City Goal efforts were funded on a one-time basis in 2021-23
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
$54,000
in funding to incentivize
additional childcare start-ups
(1.2a-8)
$119,000
in grants to non-profit and
arts organizations
(1.2)
$45,000
to help facilitate talent
relocation and retention
Climate Action, Open Space, and Sustainable Transportation
Adopted policy
requiring all-electric
new buildings
starting in 2023
Conducted 17
stakeholder and
community meetings
and hosted the SLO
Climate Party
Purchased first all-
electric fleet
vehicles
Completed key Active
Transportation Plan
projects including the
Orcutt Road
Roundabout and
Railroad Safety Trail.
Opened the new trail at
Miossi Open Space that
advances conservation
easement projects
throughout the
Greenbelt
16
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
17
Diversity, Equity, and Inclusion
Launched Community Diversity Speaker Series
Expanded staffing of DEI office to include a DEI Management
Fellow
Expanded inclusive language in hiring and recruitment documents
and embedded DEI component to employee self-evaluations
DEI embedded into Legislative Platform
Expanded internal DEI committee workplan and objectives
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
HRC
embedded DEI into purpose
and goals for 2023-25
$300,000
in grants to non-profit
organizations
MOU
executed between Cal
Poly & the City to
advance DEI
18
Housing and Homelessness
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Housing
•Develop Objective Design Standards & Update Development Review Process (3.1c)
•Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center (3.11b)
•Zoning Regulations Update -Housing (3.1d)
Homelessness
•Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non-emergency
response and care to unhoused community members (MCU). (3.10a)
•Created an ongoing Homelessness Response Manager position
•$1.7 million from the State and Local Fiscal Recovery Fund allocation for the Anderson hotel
•$300,000 to support Transition Mental Health Association to provide eight homes for homeless
individuals
Setting the Stage Framework
19
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
FTE Count*
150.5
238.5
70.25
20
Public
Safety
Internal
Services
Community
Services
Organizational
Structure
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
*Permanent, ongoing employees only. Does not
include contract or temporary staff.
How does the City fund its services? (General Fund)
Based on 2022-23 Budget
21
Top 4 revenue sources:
Sales & Use Tax
Local Revenue Measure
Property Tax
Transient Occupancy Tax
Other Tax & Franchise
Revenue
Fees for Service
Grants & Subventions*
Interfund Transfers
70%11%19%100%
Local Revenue Measure G-20 surpassed Property Tax as the
City’s #1 source of revenue in FY 2020-21.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
*Excludes ARPA Funding
Capital, Debt, Insurance
22
$21.2 million
$2 million
Capital
Debt
$4.3 million Insurance
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
19% of budget
2% of budget
4% of budget
23
Special
Projects
Major City
Goals
Emergent
needs
63 Core Programs & Services
Infrastructure maintenance
Childcare
Development Services
Street and Parks
Public Safety
How does the City fund its services? (General Fund)
$83 Million Operating Budget
used to fund
The City’s priority is to provide core services. New initiatives and one-time
strategic goals overlap core services. If additional resources (revenue) are
not available, tradeoffs are necessary.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Capital, Debt, Insurance transfers
24
Department Budgets, Core
Programs and Program
Structures
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Police Services Public
Safety
25
$20.8 million
19% of budget 60 Sworn
Police
Officers, 91
total staff
Responded to
over 37,000
calls for service
in 2021. 14%
increase from
2020.
Administration Patrol,
Downtown
Bikes,
Community
Action Team
Investigations Dispatch &
Records
Neighborhood
Outreach Traffic Safety
Core ServicesGeneral Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Fire Services
Public
Safety
26
Emergency
Response
(Staffed)
Hazard
Prevention
(Staffed)
Training
Services
Fire
Apparatus
Services
(Staffed)
Fire Station
Facility
Support
Disaster
Preparedness
& Assistance
Core Services
$14.5 million
13% of budget
Fire Admin
(Staffed)
4 Stations /
45
Firefighters.
59.5 total staff
Responded to
over 6,000 calls
for service YTD
in 2022. On
schedule for
a 15% increase
from 2021.General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
$10.4 million
9% of budget
Administration and Information Technology
Office of the
City Council
Office of the
City Manager
Office of
Economic
Development
and Tourism
Office of
Sustainability
and Natural
Resources
Protection
Office of the
City Clerk
Office of
Information
Technology
Office of
Diversity,
Equity and
Inclusion
Core Services
$300,000
Allocated to
Non-profits
to Advance
DEI in the
Community
42 Eligible
Applications
and $1.5M
in Requests
Direct
Support to
21
Organizations
Internal
Services
27
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
38.75 FTE Staff
City Attorney Internal
Services
28
$1.3 million
1% of budget
Legal Review
of all Contracts
and Other
Documents
Advice to City
Council,
Advisory
Bodies, Staff
Support for all
Major City
Goals
Management
of Defense of
the City
(Claims and
Litigation)
Advice re
Development,
Planning and
Programs
Processing
and
Coordination
of Admin Cite
Appeals
Public Record
Requests
(Advise Staff
and Review
Records)
Core Services
6 Full-time
Regular Staff
2 Contract/
Temp Staff
All City Legal
Advice,
Answers, and
Review
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Human Resources
Internal
Services
29
Human
Resources
Administration
Benefits Classification
and
Compensation
Training and
Development
Risk
Management,
Safety,
Wellness
Labor
Relations
Performance
Management Recruitment
Core Services
11 Full-Time
Regular Staff
Support for 542
Regular &
Supplemental
Staff Serving
the Community
$1.7 million
1.5% of budget
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Internal
Services
$2.3 million
2% of budget
30
Finance
Finance
Admin
Accounting/
AP/ Payroll Budget Purchasing Revenue
Management
Support
Services/
Non-Dept
Core Services
15.5 FTE
Positions
Treasury
with
Revenue,
Debt,
Investment
Accounting
AP, Payroll,
Audit,
Assets
General Fund Revenue$2.9 million
2.5% of budget
Department Budget
Non-departmental
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
31
Community Services Group Administration
CSG Admin /
Solid Waste &
Recycling
Program
Community
Development
Parks &
Recreation Public Works Utilities
$0.5 million
General Fund RevenueCommunication Collaboration Efficiencies
Administrative Support to Core Services
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
0.5% of budget
CSG Admin (2.5 FTE)
Solid Waste &
Recycling
(2 FTE)
$317K
0.3% of budgetAB 939/SB 1383 Revenue
Community Development Community
Services
32
39 FTE
Positions
Increased
Development
Increased
Housing
Opportunities
Core Services
$6.7 million
6% of budget
General Fund RevenueAffordable Housing Development Review
Policy Development
and Long-Range
Planning
Building Permits /
Inspections
Code Enforcement /
Neighborhood
Services
Core Services
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Park
Maintenance
Swim Center
Maintenance
Urban Forest
Services
Facility
Maintenance
Streets &
Sidewalk
Maintenance
Traffic Signals
& Street
Lighting
Fleet Services CIP Project
Engineering Transportation Flood Control Parking
Services
Transit
Operations
Public Works
Community
Services 33
94 FTE 12
Divisions
71 MCG
Tasks
Core Services
$16.1 million
15% of budget
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Parks & Recreation Community
Services
34
Ranger
Service Sports Special
Events Golf Childcare Aquatics Public Art
Core Services
30 FTE and
33,800
Supplemental
Staff Hours
$997,873
Operating
Budget
P&R
Blueprint for
the Future:
2021-2041
$5.3 million
5% of budget
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Utilities -Water Fund
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
1.87B
Gallons of
Water
Delivered
Community
Services
35
Total Budget: $28.3 Million
Utilities -Sewer Fund
1.09B
Gallons of
Wastewater
Treated
90M
Gallons of
Recycled Water
Delivered
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
36
Total Budget: $20.6 Million
Parking Fund: Core Services 37
Enforcement of State and Local Regulations
Operation & Maintenance of Three (3) Parking Structures
Operation & Maintenance of Nine (9) parking lots & 1,000+
parking meters
Administration and planning of parking permit programs
Community
Services
2022-23 Expenditure Budget*
$4.4 million
2022-23 Revenue Projection
$6.5 million
* Operating budget only.
Excludes debt service and
capital ($10.8 million)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
38
Parking Fund –Deferred Projects Now Underway
Cultural Arts District Parking Structure
Groundbreaking Phase 1A Anticipated Winter
Additional Centralized Pay Stations
in Railroad/Monterey Areas and
Credit Card Capable Street Meters
▪Access & Parking Management Plan (Adoption Anticipated Spring 2023)
▪Rate Increase Begins January 2023 through July 2025
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
-$20M
-$10M
$0M
$10M
$20M
$30M
$40M
$50M
$60M
2023-24 2024-25 2025-26 2026-27 2027-28
TOTAL REVENUES TOTAL EXPENDITURES UNRESERVED FUND BALANCE
39Previous Parking Fund Forecast with No Rate
Increases
Fund Balance
becomes
negative in
2024-25
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
$0M
$10M
$20M
$30M
$40M
$50M
$60M
2023-24 2024-25 2025-26 2026-27 2027-28
TOTAL REVENUES TOTAL EXPENDITURES UNRESERVED FUND BALANCE
40Parking Fund Forecast with approved Rate
Increases and Program Adjustments
Unreserved fund balance is depleted during
construction of parking structure but is offset by
debt service and replenished in outer years
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
Transit 41
Safe, reliable transportation for
seniors, students, working
professional, and visitors
2022-23 Expenditure Budget*
$8 million
2022-23 Revenue Projection*
$11.1 million
Community
Services
* Includes some unsecured grant funding
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
42
Transit Fund -Grants will help advance the CIP
Significant Grant Funding
1.American Rescue Plan Act
($12.3M)
2.SLO Regional Transit Authority
($4.9M)
Capital Projects
1.Electric Bus Purchases (up to 6)
2.EV Infrastructure Construction
3.Transit Center Rehabilitation
4.Bus Stop Improvements
5.Office Space Remodel to Enhance
Customer Service
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Strategic Scan
43
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
44
•Development Activity
•Parks & Recreation
•Public Works
•Utilities and water
usage
•Police Services
•Fire Services
City Demographics Housing &
Homelessness
Social, Economic,
Environmental
Core Service
Indicators
•Population
change
•Unemployment
•Job Growth
•Inflation
•Housing
Demographics
•Cost of living
•Homelessness in
our Community
•Homelessness &
City Operations
•Diversity, Equity
Inclusion Data
•Climate Change
and the Economy
•Economic Activity/
City Investments
Understanding Decision Making and the Effects
on the City’s Future
Goal
Meet decisionmakers’ need for
strategic information to stimulate
practical solutions to long-term
challenges facing the City
Strategy
Analyze demographic, economic,
social, and environmental trends to
anticipate challenges and provide
realistic solutions
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
4%3%3%
8%
29%
14%
8%8%
4%
6%
8%
4%
2%
Under 5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 34 35 to 44 45 to 54 55 to 59 60 to 64 65 to 74 75 to 84 85 and over
Age Distribution
The population of SLO City 45
Population Change from
2010
City of SLO: 5.4%
State: 5.3%
Current Population
47,545
Population Change from
2020
City of SLO: 1.0%
State: -0.8%
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Based on census data
46Unemployment Rate by
Geographical Area
Unemployment Averages:
City of SLO: 2.5% (1.5% margin of error)
County of SLO: 2.3%
California: 3.9%
National: 3.5% (0.1% margin of error)
At height of pandemic, unemployment
was ~8%, it has fully recovered and
remains very low.
3-7%
>12%
7-12%
<3%
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
A closer look at job growth
47
•Payrolls Q4 2020 to 2021
•City of San Luis Obispo grew 4.5%
•Statewide 6.3% growth
•Job growth in San Luis Obispo
•Small firms growing by +3.3%
•Mid-size firms -1.7%
•Large firms +0.3%.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
48USD Inflation since 1970
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
8.3%
Inflation greatly impacts both the City’s revenues and expenditures
2015 Cost
$25,401
2022 Cost
$33,130
+ wait time
Ford F-150 (Asset #1526)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
49Diversity, Equity and Inclusion Demographics
Women-owned
firms
28%
Men-owned
firms
72%
Minority-owned firms
15%
Nonminority-
owned firms
85%
SLO CITY BUSINESSES BY OWNERSHIP TYPE
(2021)
Source: “U.S. Census Bureau QuickFacts: California; San Luis Obispo City, California.” Census Bureau QuickFacts,
www.census.gov/quickfacts/fact/table/CA,sanluisobispocitycalifornia/PST045219.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion6.50%1.70%15.90%0.50%4.20%40.20%35.20%2.30%0.40%5.10%0.00%5.50%18.80%70.10%Black or African
American alone,
percent
American Indian
and Alaska
Native alone,
percent
Asian alone,
percent
Native Hawaiian
and Other
Pacific Islander
alone, percent
Two or More
Races, percent
Hispanic or
Latino, percent
W hite alone, not
Hispanic or
Latino, percent
POPULATION BY RACE (2021)
California San Luis Obispo City, CaliforniaCity of San Luis Obispo
50Diversity, Equity and Inclusion Demographics: The City Organization
1%
4%
1%
14%
8%
72%
City of SLO Workforce Racial/Ethnic
Demographics
American Indian or Alaska
Native
Asian or Pacific Islander
Black or African American
Hispanic
Not disclosed
White
Female
29%
Male
70%
Not Disclosed
1%
CITY OF SLO WORKFORCE GENDER
DEMOGRAPHICS
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
51Why Diversity, Equity, and Inclusion Matters?
❑Racially diverse leadership leads to
better performance
❑78% of workers think that a DEI
commitment offers a competitive
advantage in the recruitment and
retention process
❑The City must foster a workplace
where all employees feel valued
and respected.
For the Organization
❑Council has made a commitment
to making San Luis Obispo a
welcoming, inclusive and safe
community.
❑The city declared racism a public
health crisis in 2020
❑Social and economic inequality is
embedded in our systems and
culture, and that recovery must
integrate deep structural
changes.
In the Community
❑The Federal Economic
Development Agency has
declared Equity as their #1 for all
Comprehensive Economic
Development Strategies (CEDS)
that seek federal funding.
❑The state expanded its Bureau of
Environmental Justice to have a
greater focus on advancing racial
equity and justice
At the State & Federal Level
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
52
Climate Change and the Economy
Urgency
▪Climate disruptions will continue to be a
source of economic volatility.
▪Federal, state, and the City all have near
term (10-15 year) deep decarbonization
goals
Opportunity
•Unprecedented financial resources are on
their way. In 2022 alone, California and the
federal government committed over $425
billion to a low carbon transition.
•Additional substantial federal and state grant
resources are expected.
The Future of SLO
With these resources available, the City can achieve its goals by drawing down
these resources and deploying projects and programs at speed and scale in
our community.
The Central Coast could become a renewable energy hub that would support a
vibrant green tech/cleantech entrepreneurial environment.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
53Economic Activity and Local Investment
0
10
20
30
40
50
60
70
Vacant Businesses –Downtown SLO
Data from Downtown SLO
•Vacancy rates downtown are decreasing/plateauing
•Without the City’s investment, economic
development would have been set back.
•Faster than expected recovery of TOT and sales &
transaction tax revenue is partially due to the City
investments in recovery and resiliency.
Buy Local Bonus Program $868,522 in direct local spending
Two rounds of Childcare investment
($95K direct)
70-100+ additional childcare slots in
SLO City
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
54
Key Takeaways from the Central Coast Economic
Forecast
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
▪The future of San Luis Obispo is largely dependent on the
City continuing to attract and retain a diverse talent
pool.
▪More housing, specifically affordable and multi-family
housing, is crucial for economic growth and stability.
▪Younger workers are moving to inland communities where
housing is more affordable.
55
Housing
Year
Owner
Occupied
Housing Unit
Rate
Median Value
of Owner-
Occupied
Housing Units
Median Gross
Rent
Median
Household
Income
Per Capita
Income
2000 38.0%$278,800 $724 $31,926 $20,386
2010 37.6%$588,400 $1,153 $40,812 $26,204
2020 41.1%$662,300 $1,611 $58,546 $36,232
Average cost of housing has increased 130% whereas per capita income has increased by 78%
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
56Housing
Renting in San Luis Obispo
3%
11%
29%
29%
12%
6%
9%
0%5%10%15%20%25%30%35%
Less than $500
$500 to $999
$1,000 to $1,499
$1,500 to $1,999
$2,000 to $2,499
$2,500 to $2,999
$3,000 or more
Percentage of UnitsRent Cost (dollars)Rent Average (per person), 2020
35.0
percent or
more of
income
59%
30.0 to 34.9 percent of
income
5%
25.0 to 29.9 percent of
income
11%
20.0 to 24.9 percent of
income
8%
15.0 to 19.9 percent of
income
9%
Less than 15.0 percent of
income
8%
Rent as a percentage of
household income
(GRAPI), 2020
Majority of renters in San Luis Obispo spend more than 35% of their income on rent
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
57
Point in Time Count (PIT) -Homeless Population Totals:
Homelessness in our Community
•The PIT indicates a slight decrease in homelessness in SLO City compared to 2019.
•However, this data is representative of a single night and may vary based on weather conditions,
resource availability, etc.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
58
Homelessness and City Operations
Police Reports Taken Involving
Homeless Persons
Homeless
Calls for Service
Consistent calls for service and subsequent reports filed show the impact that
homelessness has on City resources including first responders.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
59New Ongoing Resources Towards Homelessness:
Mobile Crisis Unit & the Community Action Team
•MCU is a new program offering Crisis Support and resources in nonemergency situations such as
mental health, substance abuse and chronic homelessness
•Both MCU and CAT provide services beyond emergency response:Build Trust, Provide Care, Offer
Resources, Free up Emergency Personnel
7441
578
17
3
127
TOTAL CALLS RELATED TO HOMELESSNESSUNIQUE INVIDUALS CONTACTEDFAMILY & AGENCY REUNIFICATIONLOCAL PERMANENT HOUSING PLACEMENTMENTAL HEALTH, SUBSTANCE ABUSE TREATMENT REFERRALSCAT STATS 2021
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
60
Development in the City
Building Inspections Conducted
Increasing to record high levels
Development Permit
Applications Received
Many large development projects occurring in the City. Lower development permit applications
than the peak FY 2020, but still high.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
61
The City as a Childcare Provider
Parks & Recreation
Overall, the childcare waitlist has grown as demand increases among the different types.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
62Parks & Recreation
Aquatics & Instructional Classes
Aquatics programs have grown overall usage, and new and existing instructional class offerings
continue to fill at high rates.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
63Public Works
Transit & Transportation
The Transit Program anticipates an increase in ridership from previous years following the
COVID-19 pandemic.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
64Water Usage in the City
Gallons Per Capita Daily
Slightly declining
Recycled
Water (Acre-Feet)
Increasing
Water/Sewer
Customer Accounts
Increasing due to new units
From FY21 to FY22 the City increased annual recycled water delivered by 59%.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
65Utilities
Considerations for the 23-25 Financial Plan
1. Ongoing drought is resulting in increased
State-mandated water conservation and
water use efficiency regulations, despite
stable conditions locally.
2. Industry-specific rises in costs (i.e.
chemicals, electricity, capital project delivery)
3. General inflation
Available City Water Supply
(Acre-Feet, End of FY)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
conclusion
66Police: Calls for Service vs. Staffing
•Calls for service increased 14% in 2021
from 2020 and 32% since 2009. Staffing
decreased 4% over the same period.
•Only 42 of the 60 sworn positions
were actively working shifts (on
average) in 2021-22 due to:
•Vacancies/recruitment
•Workers’ compensation leave
•General time off (trainings,
vacation, sick leave)
Year over Year Calls for Service/Officer Staffing
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
67Police Department: Other Challenges
•Mandatory training for officers has increased and will continue to as a result of
legislative changes related to policing.
•Currently, 8 hours of Crisis Intervention Training (CIT) is required for all officers –the
goal of the department is to increase this to 20 hours and as a result officers would
acquire the status of “Mental Health Peace Officer”.
•Public Safety Equipment Replacement Fund: Increase in costs for police protective
equipment. New equipment is needed such as AEDs for vehicles and rifle rated
vests for all police officers.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
68
A full-service all-risk fire department offering fire suppression, specialty rescue, hazardous
materials mitigation, and paramedic advanced life support.
2021 Count 2022 YTD Count
6256 7935Total Unit Responses
more units committed = less resources for other calls
6,013 Calls for Service in 2022 YTD
15% increase from 2021
•158 Fires
•3,467 Medical Emergency
•652 Service Calls
•Remaining: rescues, false alarms, hazardous
conditions
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
26% Increase in Unit Responses
to Incidents
CIP Budgeting Approach and
Other Recommendations
69
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
70CIP Budget Approach
•Use of ‘Funding Buckets’ for Asset Maintenance and Asset Replacement projects
•Funding Buckets group like projects
•Not recommended for New Asset projects (typically large scale, “legacy”
projects)
•Governance
•Purchasing policy
•Budget adjustment process
•CIP reporting
•Policy language (previewing for January adoption)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
71
Fleet
Facilities
Open Space
& Natural
Areas
Preservation
Parking &
Transit
Parks, Urban
Forestry &
Public Art
Streets,
Bridges &
Multimodal
Transportation
Creek & Flood
Protection
Information
Technology
Water
Resources,
Treatment &
Distribution
Wastewater
Collections &
Treatment
Asset Maintenance/
Replacement Projects
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
CIP Budget Approach-Current vs. Recommended
Current Approach Recommended Approach
72
Project Type
Project
Task
Council Budget
Appropriation
Staff discretion to
move budget
between tasks
Project Type
Funding “ Bucket “
Project
Task
Council Budget
Appropriation
Staff discretion move
budget between
projects
73Current Budget Appropriation Process
Budget
appropriation
to individual
projects
Project #Project FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
1000503 Annual Public Art Maintenance & Projects $ 142,500 $ 142,500 $ 40,000 $ 40,000 $ 40,000
Small Public Art Projects $ 102,500 $ 102,500 $ 0 $ 0 $ 0
Utility Box Beautify $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Public Art Annual Asset Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
1000030 Laguna Lake Golf Course Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
1000532 Roundabout Art Installations $ 300,000 $ 300,000 $ 200,000 $ 200,000 $ 200,000
1000027 Urban Forest Maintenance $ 315,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000
Urban Forest Maintenance $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000
Urban Forest Master Plan $ 140,000 $ 0 $ 0 $ 0 $ 0
1000033 Playground Equipment Replacement $ 110,000 $ 100,000 $ 700,000 $ 800,000 $ 1,175,000
DeVaul Ranch Playground $ 60,000 $ 0 $ 375,000 $ 0 $ 0
Vista Lago Mini Park Playground $ 50,000 $ 0 $ 250,000 $ 0 $ 0
Laguna Hills Playground $ 0 $ 0 $ 75,000 $ 0 $ 750,000
Mitchell Park Playground $ 0 $ 100,000 $ 0 $ 750,000 $ 0
Playground Equipment Replacement $ 0 $ 0 $ 0 $ 50,000 $ 350,000
French Park Playground Equipment Replacement $ 0 $ 0 $ 0 $ 0 $ 75,000
91385 Park Major Maintenance & Repairs $ 1,835,000 $ 160,000 $ 1,000,000 $ 690,000 $ 840,000
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
74
Parks,
Urban
Forestry &
Public Art
1000503-
Annual Public
Art Maint &
Projects
1000030-
Laguna Lake
Golf Course
Maint
91385-Park
Major Maint &
Repairs
1000033-
Playground
Equipment
Rep
1000532-
Roundabout
Art
Installations
1000027-
Urban Forest
Maint
$$$
Example: Parks, Urban
Forestry & Public Art
bucket for Asset
Maintenance projects
•Estimated cost for
individual projects
determines
recommended bucket
amount
•Staff would have
discretion to use
bucket amount to
fund all projects
within the bucket
Budget appropriation to bucket
Recommended New Approach to Budget Appropriation
75Benefits of Funding Bucket Approach
Enables the City to
be nimbler in
responding to cost
overruns, as well as
changes to project
prioritization to
deliver projects
Projects are priced
closer to when they
are initiated, rather
than during budget
development
Staff has additional
time to develop
project scopes which
will result in more
accurate and
complete project
scopes
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
76CIP Budget Approach –Funding Bucket Governance
•Purchasing Policy requires Council authorization to award construction
contracts over $200,000
•Staff will be in front of Council regularly for projects, providing opportunity
for Council to provide direction
•Budget adjustment process
•Forces consideration of overall CIP
•CIP reporting
•Provided to REOC and Council quarterly
•Focus on project status and expenditures from buckets
•Policy language
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
77
Changes to Existing Policies
•Clarifies role of Project Managers
•Clarifies role of CIP Review Committee
•Outlined recommended new approach of City Council appropriation of funding to Asset Replacement and
New Asset projects to "funding buckets"
New Policies
•Identifies and defines project types
•Requires use of Project Request Forms
•Establishes ongoing criteria used by CIP Review Committee to prioritize projects for funding
•Limits creation of new projects off-cycle to those that address emergency needs
•Establishes the process staff must follow to process administrative budget adjustments within a "funding
bucket"
•Requires staff to publish CIP reports on a quarterly basis
Deletion of Existing Policies
•Eliminates policy that requires project phases to be listed as objectives in department program narratives
(this is not current practice)
CIP Budget Approach –Policy Changes
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
78
•Appropriate $40,000 of the City’s General Fund Unassigned Fund Balance into operating budget
to contribute to the Housing Trust Fund.
•Correction to the 2022-23 Appropriations Limit:
Council Agenda Report: Recommendation #2
Previously adopted Appropriations Limit 2022-23 (R-11332)$85,666,375
Corrected Calculation
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index (revised)7.55%
Population Factor:County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive)1.025%
Appropriations Limit 2022-23 (revised)$85,706,220
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Conclusion: Planning for 2023-25
Good Fiscal Management Public Engagement Quality Services
Continued commitment to…
Many challenges, many opportunities, many efforts and endeavors ahead
79
Recommendations
80
1.Receive and discuss the following framework in preparation for the 2023-25 goal-setting and
Financial Plan process:
a.FY 2022-23 1st quarter results
b.2021-23 Adopted Major City Goals
c.General Plan and Climate Action Plan Update
d.Setting the stage framework including core services and a scan of strategic indicators
for all major funds.
e.Introduce a recommended approach to the budgeting and management of the Capital
Improvement Plan (CIP)and receive Council feedback (Attachment D)
2.Adopt a resolution entitled,“A Resolution of the City Council of the City of San Luis Obispo,
California,approving an amendment to the 2022-23 Budget Allocation”to appropriate $40,000 of
the City’s General Fund Unassigned Fund Balance into operating budget to contribute to the
Housing Trust Fund and correction to the 2022-23 Appropriations Limit.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion