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HomeMy WebLinkAbout03-01-2023 REOC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Agenda REVENUE ENHANCEMENT OVERSIGHT COMMISSION Wednesday, March 1, 2023 5:00 p.m. REGULAR MEETING Finance and IT Conference Room (Lower Level) 990 Palm Street San Luis Obispo, CA CALL TO ORDER Chair Jim Hamari ROLL CALL : Commissioners Christopher Ellwood, Tony Skapinsky, and Anthony Bozzano PUBLIC COMMENT: At this time, people may address the Committee about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. CONSIDERATION OF MINUTES 1. Minutes of the Revenue Enhancement Oversight Commission of December 8, 2022 BUSINESS ITEMS 2. Fiscal Year 2021-22 Annual Audit Review (Natalie Harnett– 15 minutes) Recommendation: Review the audited financial statements contained in the 2021-22 Annual Comprehensive Financial Report for the Local Revenue Measure. Revenue Enhancement Oversight Commission Agenda for March 1, 2023 Page 2 3. Proposed Allocation of Unassigned Local Revenue Measure Funds (Greg Cleary – 10 minutes) Recommendation: Recommend to the City Council the use of Local Revenue Measure unassigned fund balance for the North Chorro Neighborhood Greenway project. 4. 2021-22 Draft Annual Community Report (Natalie Harnett – 15 minutes) Recommendation: Review and take public testimony on the FY 2021-22 Draft Local Revenue Measure Annual Community Report. COMMITTEE ANNOUNCEMENTS ADJOURNMENT The next Regular Meeting of the Revenue Enhancement Oversight Commission is scheduled for March 30, 202 3. The City of San Luis Obispo wishes to make all of its public meet ings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Meeting audio recordings can be found at the following web address: http://opengov.slocity.org/weblink/1/fol/61028/Row1.aspx DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 8, 2022 Page 1 Minutes - DRAFT REVENUE ENHANCEMENT OVERSIGHT COMMISSION Thursday, December 8, 2022 Regular Meeting of the Revenue Enhancement Oversight Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was called to order on Thursday, December 8, 2022, at 5:31 pm by Chair Hamari. ROLL CALL Present: Commissioners Skapinsky, Ellwood, Bozzano, Vice-Chair Dunlop and Chair Hamari Absent: none Staff: Natalie Harnett, Principal Budget Analyst who also served as Recording Secretary Emily Jackson, Finance Director PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 1. Consideration of Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of September 22, 2022. ACTION: UPON MOTION BY COMMISSIONER ELLWOOD SECONDED BY COMMISSIONER DUNLOP, CARRIED 5-0-0, the Revenue Enhancement Oversight Commission approved the Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of September 22, 2022, as presented. BUSINESS ITEMS 1. FY 2022-23 First Quarter Local Revenue Measure Review The City’s Principal Budget Analyst, Natalie Harnett, provided a presentation and responded to Commissioner inquiries. No action was necessary on this item. Public Comment None DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 8, 2022 Page 2 2. 2021-22 Annual Community Report and Citizen Oversight Meeting The City’s Principal Budget Analyst, Natalie Harnett, provided a presentation and responded to Commissioner inquiries. The commissioners discussed with staff the format of the community forum and appointed subcommittee members for the annual community report. Public Comment None ACTION: UPON MOTION BY COMMISSIONER SKAPINSKY SECONDED BY COMMISSIONER ELLWOOD CARRIED 5-0-0, the commission appointed Commissioners Dunlop and Bozzano to service as the subcommittee members to help develop the 2021-22 Community Report. 3. Update on recommended changes to the City’s Capital Improvement Plan Budget and Fiscal Policies The City’s Finance Director, Emily Jackson, provided an update on the recommended changes to the City’s Capital Improvement Plan Budget and Fiscal Policies. Staff responded to clarifying questions about the recommended policy changes. Public Comment None ACTION: UPON MOTION BY COMMISSIONER SKAPINSKY SECONDED BY COMMISSIONER DUNLOP CARRIED 5-0-0, the commission recommends to the City Council the policy changes as presented in the report. COMMENT AND DISCUSSION 2. Staff Updates - none 3. Commission Communications - none ADJOURNMENT The meeting was adjourned at 6:18 p.m. The next Regular Revenue Enhancement Oversight Commission meeting is scheduled for January 26, 2023, at 6:00 p.m., in the Ludwick Community Center, 864 Santa Rosa Street, San Luis Obispo, California. The meeting will also serve as the 2022-23 Annual Citizens’ Oversight Meeting. APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: 3/1/2023 Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 3/1/23 Item Number: 2 DATE: March 1, 2023 FROM: Emily Jackson, Finance Director Prepared By: Natalie Harnett, Principal Budget Analyst SUBJECT: REVIEW OF AUDITED 2021-22 FINANCIALS RECOMMENDATIONS Review the audited financial statements contained in the Annual Comprehensive Financial Report (ACFR) for the Local Revenue Measure. DISCUSSION Ordinance No. 1605, establishes the Citizens’ Revenue Enhancement Oversight Commission (REOC) and includes specific citizen oversight and fiscal accountability provisions for the Local Revenue Measure (LRM). These provisions include an annual review of the financial statements for the Local Revenue Measure as included in the City’s ACFR: 2.14.040(C.) Annual Audit. The REOC shall meet annually to review the financial statements contained in the Annual Comprehensive Financial Report for the Essential Services Measure. On January 17, 2023, the City Council accepted the ACFR for fiscal year 2021-22. As required by the City Charter, the financial statements for the City (including the Local Revenue Measure) were audited by independent certified public accountants. The objective of a financial audit is to provide users of the financial reports with reasonable assurance, from an independent source, that the reports and the statements within are reliable. The auditor, Badawi and Associates, issued the financial statements with a ‘clean opinion’ which means that they are presented fairly and in conformity with generally accepted accounting principles. As a matter of clarification, LRM funds are a sub-fund of the General Fund and as such the schedules on pages 123-125 contained in the ACFR are for informational purposes only. Table 2 below shows $1,670,106 is available for future year appropriations in the Local Revenue Measure fund at the end of fiscal year 2021-22. As with most California cities, the actual sales tax revenues came in higher than initial projections. At the end of fiscal year 2021-22, the Local Revenue Measure had a fund balance of $5,696,864 of which $1,958,912 remains assigned for capital projects already approved by the REOC and the City Council , and $2,067,846 was allocated based on REOC’s recommendation and Council action from October 4, 2022. An excerpt from the ACFR Transmittal Memorandum with a summary of the audited expenditures and revenues is included below. The complete ACFR is available online at www.slocity.org. City of San Luis Obispo, Title, Subtitle Table 1: LRM Budget to Actuals Table 2: Local Revenue Measure FY 2021-22 Ending Position 1 Beginning Balance $ 9,299,971 2 Revenue $ 28,888,510 3 Expenditure Allocations (not including encumbrances) $ (32,491,617) 4 Revenue Over/(under) Expenditures1 $ (3,603,107) 5 Ending Fund Balance $ 5,696,864 6 Assigned to Projects $ 1,958,912 7 Council action from October 4, 2022 (R-11367) $ 2,067,846 8 Unassigned FY 2021-22 LRM Fund Balance (Feb 2023) $ 1,670,106 1 The reason that this line is negative is because some expenditure allocations were made using unassigned fund balance from the prior year or carryover project budget from prior years. Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 3/1/23 Item Number: 3 DATE: March 1, 2023 FROM: Emily Jackson, Finance Director Prepared By: Greg Cleary, Capital Improvement Program Administrative Manager SUBJECT: PROPOSED USE LOCAL REVENUE MEASURE UNASSIGNED FUND BALANCE RECOMMENDATION Recommend to the City Council the use of $1.6 million of unassigned Local Revenue Measure funds to be allocated to the North Chorro Neighborhood Greenway Project. DISCUSSION On July 19, 2022, the City Council approved an overall project budget of $5,033,455, authorized staff to advertise for construction bids for the North Chorro Neighborhood Greenway, and delegated authority to the City Manager to award the contract if the lowest responsible bid was below the Publicly Disclosed Funding Amount of $3,375,000. After experiencing unanticipated delays in awaiting review of an encroachment permit application with Caltrans for the US 101/Chorro undercrossing portions of the project, staff was ultimately able to advertise the project for construction in December 2022. There is currently a balance of $4,505,856 in the project account. Project expenditures to date have included the design and environmental services, PG&E and Caltrans coordination costs, as well as encumbrances for construction management contract services and artists to fulfill the public art component of the project. On January 31, 2023, three bids were received. Souza Construction was determined to be the lowest responsive bid, with a Bid Total of $6,076,938. Based on the bid price, an additional $3,114,104 is needed to fully fund the project. The increase in project cost and need for additional funding can be attributed to a few factors. Recently, City construction projects have seen an increase in construction costs which can be attributed to rising cost of materials and labor of approximately 30% over the last two calendar years (January 2021- January 2023). Many of the construction materials required for the project, such as asphalt emulsion for roadway slurry seal, have increased exponentially due to recent spikes in oil prices. Many of the bid prices reflected significant increases from comparative bids received for the most recent curb ramp and paving projects. All three bids received demonstrated a consistent increase when comparing bid items. FISCAL IMPACT Staff recommend using $1.6 million of the one-time unassigned Local Revenue Measure (LRM) fund balance to help fund the additional costs. Based on the audited financials presented in item number 2, the Local Revenue Measure has an unassigned fund balance of $1,670,106. The remainder of the funds City of San Luis Obispo, Title, Subtitle City of San Luis Obispo, Title, Subtitle Item #3 Proposed Local Revenue Measure Use needed for the North Chorro Greenway Project will come from other funding sources identified in Table 1 below, which is also included in the Council Agenda Report going to Council on March 7, 2023. Table 1: Additional Funding Sources Any remaining budget at the close out of the project will be returned to the CIP Reserve account. ATTACHMENTS None Sewer Fund General Fund Transportation Impact Fund (TIF) Developer (Vehicle Miles Traveled (VMT) Mitigation Fee) TOTAL Undesignated Local Revenue Measure Fund Balance $1,600,000 $1,600,000 Capital Projects Reserve $218,708 $218,708 Sidewalk Annual Asset Maintenance (90849)$0 Task 1: Curb Ramps and Sidewalks $100,000 $100,000 Street Lights - Annual Asset Maintenance (91616)$141,101 $141,101 Pedestrian Crossing Improvements (1000069)$100,000 $100,000 Active Transportation Plan Implementation (1000502)$0 Task 1: Pedestrian Facility Improvements $76,869 $76,869 Task 2: Bicycle Facility Improvements $105,507 $105,507 Railroad Safety Trail (Taft to Pepper) (91375)$94,600 $217,900 $312,500 California/Foothill RR Crossing (91293)$178,340 $178,340 862 Aerovista Development VMT Mitigation Fee $90,837 $90,837 Sewer Manhole Cover Adjustments (1000084)$4,520 $4,520 Water Valve Cover Adjustments Project (91149)$21,008 $21,008 Morro, Mill, Santa Rosa Wastewater Collections Systems Improvements Project (1000561)$164,715 $164,715 Total by Fund $190,242 $2,615,125 $217,900 $90,837 $3,114,104 Table 2: Additional Sources of Funding Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 3/1/2023 Item Number: 4 DATE: March 1, 2023 FROM: Emily Jackson, Finance Director Prepared By: Natalie Harnett, Principal Budget Analyst SUBJECT: FY 2021-22 LOCAL REVENUE MEASURE YEAR ANNUAL COMMUNITY REPORT AND REPORT-IN-BRIEF RECOMMENDATION 1. Review and take public testimony on the FY 2021-22 Draft Local Revenue Measure (LRM) Annual Community Report and Report-in-Brief. DISCUSSION Background Chapter 3.15 of the Municipal Code (the Essential Services Transactions [ Sales] and Use Tax) includes specific citizen oversight and fiscal accountability provisions. One of these provisions requires an annual community report and an Annual Citizen Oversight Meeting: Annual Community Report. A written report shall be reviewed at a public hearing by the Revenue Enhancement Oversight Commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent (MC 3.15.040.E). A copy of the “Report-in- Brief”(Attachment B) will be sent to all households with the April utility billing cycle. Annual Citizen Oversight Meeting. The REOC shall hold an annual essential services community forum for the purpose of taking input from residents and community members on preferences for the use of the revenues generated by the essential services tax. Annual Community Report The FY 2021-22 Annual Community Report (Attachment A) and Annual Report-in-Brief (Attachment B) highlight the revenue and uses of the Local Revenue Measure for the fiscal year covering the time from July 2021 to June 2022. The report versions attached in this report are still in draft status. Due to the timing of the next REOC meeting (March 30, 2023) being too close to the April utility billing cycle, staff wanted to supply the reports to the commission now. Unless advised by the REOC to make changes, the content of the report will not change. The City’s communications team will complete any necessary formatting or touch-up work before publication. City of San Luis Obispo, Title, Subtitle City of San Luis Obispo, Title, Subtitle Item #4 FY 2021-22 Annual Community Report Local Revenue Measure Uses The table below shows a summary of LRM expenditures allocations. Note that total expenditure allocations are higher than revenue received for the year. This is because the prior year’s fund balance was used to fund some expenditures. Detailed LRM audited financial statements can be found in the 2021-22 Annual Comprehensive Financial Report. Table 1: Local Revenue Measure FY 2021-22 Ending Position 1 Beginning Balance $ 9,299,971 2 Revenue $ 28,888,510 3 Expenditure Allocations (not including encumbrances) $ (32,491,617) 4 Revenue Over/(under) Expenditures1 $ (3,603,107) 5 Ending Fund Balance $ 5,696,864 6 Assigned to Projects $ 1,958,912 7 Council action from October 4, 2022 (R-11367) $ 2,067,846 8 Unassigned FY 2021-22 LRM Fund Balance (Feb 2023) $ 1,670,106 Local Revenue Measure Uses by Priority Expenditures are broken into the following categories: 1 The reason that this line is negative is because some expenditure allocations were made using unassigned fund balance from the prior year or carryover project budget from prior years. City of San Luis Obispo, Title, Subtitle City of San Luis Obispo, Title, Subtitle Item #4 FY 2021-22 Annual Community Report Local Revenue Measure Uses by Type: Operating ($6.9 M) The table below breaks down the LRM operating budget allocations for FY 2021-22 by category. The largest use of the funding was for preservation of essential services and public safety. Examples of these costs include funding for positions such as police officers, open space rangers and flood control staff. *FTE = Full-time Equivalent Positions Local Revenue Measure Uses by Type: Capital ($14 M) Total capital expenditures include the budget for FY 2021-22 and carryover funding from past fiscal years. This is typical of capital improvement projects that usually span over multiple years. Project phases don’t always align with fiscal years, and project schedules are subject to variables that cause delays to even the best planned timetables. Budgeted funds for capital projects carry over year to year until the project is completed. The total amount of local revenue measure carryover for capital projects currently underway in FY 2021-22 is approximately $12 million. Specific details on which capital projects are carrying a balance are included in Attachment A. Any funding remaining once projects are completed will be transferred into a Local Revenue Measure Completed Projects account. This funding could be used for other approved Local Revenue Measure projects that end up costing more than what was budgeted (subject to City Manager approval) or be reprogrammed to other capital projects that meet Local Revenue Measure priorities subject to REOC and City Council approval. 5% 20% 9% 12% 5% 14% 5% 15% 11% 4% 2021-22 OPERATING USE ($6.9 M) Protect Financial Stability (FTE = 3.5) Community Safety and Emergency Preparedness (FTE = 8) Creek and Flood Protection (FTE = 6) Address Homelessness (FTE = 1) Safe and Clean Public Areas (FTE = 3) Economic Development and Business Retention Youth/Senior Services and Recreation Facilities (FTE = 3.5) Street Maintenance and Transportation (FTE = 5.6) Open Space/Natural Areas Preservation and Maint. (FTE = 5) Other Services and Projects City of San Luis Obispo, Title, Subtitle City of San Luis Obispo, Title, Subtitle Item #4 FY 2021-22 Annual Community Report *This represents actual expenditures for the year and is therefore not inclusive of the entire capital budget allocation referenced in Table 1. Remaining budget is carried over to the following year. Local Revenue Measure Revenues Audited revenues from the local 1.5 percent sales tax totaled $28.8 million in FY 2021-22. This was about 12% above staff’s projection for the year. The adopted revenue budget for FY 2022-23 is $30.1 million. Year-to-date for the City has received about $12.3 million2 and is on track to meet its revenue projection. The Local Revenue Measure has generated over $130 million to protect and keep essential services and facilities since its original adoption in 2006. ATTACHMENTS 1. FY 2021-22 Local Revenue Measure Annual Community Report 2. FY 2021-22 Local Revenue Measure Annual Community Report-in-Brief 2 Because the remittal of sales tax lags by about 2 -3 months, this number represents the revenue from July 2022-November 2022. 11% 6% 4% 3% 13% 47% 9% 7% 2021-22 CAPITAL USE ($14 M*) Community Safety and Emergency Preparedness Creek and Flood Protection Safe and Clean Public Areas Economic Development and Business Retention Youth/Senior Services and Recreation Facilities Street Maintenance and Transportation (incl bike and ped improvements) Open Space/Natural Areas Preservation and Maintenance Other Services and Projects Railroad Safety Trail and Bridge (Taft to Pepper Streets) The Local Revenue Measure helped fund one of the highest-priority multi-model transportation projects which connects Cal Poly to the Downtown Area. The project was completed in March 2022. SPOTLIGHT PROJECT ORCUTT TANK FARM ROUNDABOUT PAGE 7 Learn about the City's milestone project to construct a critical roundabout at one of the City's major gateways. HOW DID WE SPEND REVENUES? PAGE 5 Read about how Local Revenue Measure funds were spent in 2021-22 LOCAL REVENUE MEASURE ANNUAL COMMUNITY REPORT Fiscal Year 2021-22 CITY OF SAN LUIS OBISPO 1 Consistent with City goals, including climate action, the expansion of the Railroad Safety Trail from Taft to Pepper streets provides safer access for bicyclists and pedestrians while reducing greenhouse gas emissions. 2 The Local Revenue Measure funds over 35 full-time positions ranging from Engineering Inspectors to Police Officers. It is also the primary funding source for most of the City's vehicles and equipment used to keep the City safe and clean. The Local Revenue Measure is a 1.5 percent local sales tax approved by City voters in November 2020 and went into effect on April 1, 2021. It replaced the previous .5 percent local sales tax approved by City voters in November 2006. It helps protect and maintain operating services and public infrastructure identified by the community such as community safety, creek protection, addressing homelessness, keeping public areas safe and clean, retaining local businesses, youth/senior services, streets, open space/natural areas and other vital services and facilities. LOCAL REVENUE MEASURE BALLOT MEASURE (MEASURE G20)3 The Local Revenue Measure funds the City's new Mobile Crisis Unit. The unit provides support services to anyone in the City and is designed to help prevent and reduce chronic homelessness. The program provides support to individuals suffering from non- emergency mental health challenges, drug and alcohol addiction, and chronic homelessness. The Mobile Crisis Unit pairs a mental health case worker (Scott Giem - left) with a fire department emergency medical technician (Keanu Morrison - right). "To protect the City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/ safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter- approved funding at a 1.5¢ (1.5%) rate until ended by voters. All funds require audits/ all funds used locally." REVENUES 4 The Downtown Pavement Improvements project was a multi-million dollar project that will removed and replaced asphalt, fixed damaged curbs and gutters, upgrade ADA ramps, and applied slurry seal and striping. The Local Sales Tax revenue totaled $28.8 million in 2020-21, amounting to approximately 27 percent of general fund revenue. Fiscal Year 2021-22 marked the second year that the City collected additional revenue due to the increase in the tax rate (Measure G-20), which went into effect on April 1, 2021. The Local Revenue Measure has generated more than $130 million since its original adoption in November 2006.MillionsFISCAL YEAR (JULY 1-JUNE 30) Increase due to the new tax rate from Measure G-20 (effective April 1, 2021). $2.16M YOUTH/SENIOR SERVICES AND RECREATION FACILITIES 14% $1.49M CREEK AND FLOOD PROTECTION7% $1.42M ECONOMIC DEVELOPMENT7% $7.56M STREET MAINTENANCE AND TRANSPORTATION*36% $2.88M COMMUNITY SAFETY $974,000 SAFE AND CLEAN PUBLIC AREAS5% $2.03M OPEN SPACE PRESERVATION 10% $1.26M OTHER VITAL SERVICES AND CAPITAL PROJECTS6% LOCAL REVENUE MEASURE USES IN 2021-22 2021-22 Local Revenue Measure funds were used on the following Council-adopted priorities: The Local Revenue Measure provides funding to help acquire and maintain the City's open spaces. Rangers funded by the measure built the bridge seen here along a trail in the Miossi Open Space. 5 *Projects listed in the "Street Maintenance and Transportation" category also include significant bicycle and pedestrian improvements. $811,000 ADDRESSING HOMELESSNESS4% PROTECTING FINANCIAL STABILITY $329,0002% 10% LOCAL REVENUE MEASURE USES IN 2021-22 6 Local Revenue Measure uses fall into two categories: operating programs and capital programs. Operating Uses: $6.9M // 23% Capital Uses: $23.6M // 77% To fund positions that provide community services Examples of operating expenditures include funding for positions such as police officers, open space rangers, homelessness response positions, and flood control staff. For every $1 of revenue generated by the Local Revenue Measure, approximately 70¢ is paid by visitors and 30¢ is paid by City residents To fund construction and investment in equipment Examples of capital expenditures include construction of major projects like the Orcutt Tank Farm Roundabout as well as the maintenance of City infrastructure. The Local Revenue Measure helps fund fire fuel reduction and flood control efforts. Rangers and flood control staff are instrumental in making sure that creeks are clear of debris. The Measure also plays a major role in helping maintain the City's vast urban forest. PROJECT SPOTLIGHT 7 “The Greys in Between”, the permanent 3-legged sculpture at the center of the newly completed roundabout, was created by artist Anila Quayyum Agha. In exploring the intersections of race, class, culture, and religion, the piece celebrates minority and immigrant peoples’ contributions to our society and signifies San Luis Obispo as a community committed to being a welcoming place for all. Orcutt Tank Farm Roundabout The Tank Farm Road and Orcutt Road Roundabout is a critical transportation infrastructure project identified in the both the General Plan and Orcutt Area Specific Plan to improve traffic operations and safety at this high-volume intersection with the ongoing construction of new housing within the Orcutt Area. The roundabout addresses ongoing congestion and vehicle queuing during peak commute periods, as well as provides dedicated crossings for bicyclists and pedestrians, improving multimodal connectivity between Islay Park and neighborhoods to the north. Photo credit: Steven Heraldo PLANNED AND RECENTLY COMPLETED LOCAL REVENUE MEASURE USES 8 The Local Revenue Measure is a critical revenue source for community investment. The City is committed to completing projects that maintain infrastructure and support the delivery of essential services to residents and businesses. Estimated Construction Start Date Summer 2023 North Chorro Greenway Project Construction Ongoing 2022-23 Roadway Sealing Estimated Construction Start Date Spring 2023 Cheng Park Revitalization Responding to the damage from the January 2023 storms and preparing for future storm events will be a top priority for the City over the next several years. Completed December 2021 Curb Ramps Project Estimated Construction Start Date Winter 2023 Mission Plaza Restrooms and Kiosk Project Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS 2021-22 (BUDGET) 2021-22 (ACTUAL) 2021-22 (BUDGET& CARRYOVER) 2021-22 (ACTUAL) Storm Drain System Replacement Broad and Leff Culvert Repair Pismo/Johnson/San Luis Creek Bank Stabilization Woodbridge Groundwater Runoff Diversion Creek and Flood Protection (FTE = 6) Subtotal $1,074,772 $860,765$632,567 $632,567 7,613 822,159 7,612 660,176 235,000 192,977 10,000 0 632,567 632,567 Creek and Flood Protection LOCAL REVENUE MEASURE SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 9 Open Space/Natural Areas Preservation and Maintenance 721,610 741,007 $ 1,819,605 $ 1,288,634$ 741,007 $ 741,007 278,597 634,918 48,417 653,003 528,950 166,395 76,619 741,007 Subtotal Urban Forest Annual Asset Maintenance Laguna Lake Dredging and Sediment Management Open Space Acquisition Open Space Maintenance Open Space Preservation (FTE = 2) Addressing Homelessness (1 FTE) $328,811Protecting Financial Stability (3.5 FTE)$328,811 $810,647 $810,647 10 Add a subheadingAdd a subheading 1,665,000 36,676 744,775 82,407 57,085 33,686 717,589 Subtotal $ 11,723,238 $ 6,547,841$ 1,016,455 $ 1,016,455 363,773 57,493 Curb Ramps 816,9901,000,000 Street Maintenance and Transportation CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 CAPITAL PROJECTSOPERATING PROGRAMS 2021-22 (BUDGET) 2021-22 (ACTUAL) 2021-22 (BUDGET& CARRYOVER) 2021-22 (ACTUAL) Ped and Bike Pathway Inventory and Pavement Condition Neighborhood Greenway Plan Implementation ‐ Phase II South Street Median Landscaping Avila Ranch ‐ Buckley Extension Class I Bike Lane Pedestrian Crossing Improvements 2021 Downtown Pavement Improvements Project Active Transportation Plan Implementation Monterey at Santa Rosa Paving and Signal Project Roadway Sealing 2022 Street Reconstruction and Resurfacing - Annual Asset Maint. Mid-Higuera Bypass Traffic Signs and Striping Maintenance California Taft Roundabout Orcutt/Tank Roundabout Construction Prado Road Interchange Prado Road Bridge & Road Widening Higuera Street Paving Transportation Safety & Operations Marsh at Santa Rosa Replacement Traffic Safety Implementation Railroad Safety Trail Taft to Pepper Broad Street Corridor Access Improvements Neighborhood Traffic Improvements Street Maintenance and Transportation (FTE = 5.6) 2,573,536 44,243 10,360 34,541 156,706 16,930 5,299 427,780 0 804,280 69,760 43,770 53,700 230,975 10,000 336,223 2,630,095 1,016,4551,016,455 5,402 30,830 35,000 10,662 400,107 179,756 1,000,000 238,160 413,118 110,000 62,919 300,000 1,069,494 500,000 427,780 24,634 59,119 74,250 149,469 156,706 11 Add body text Add body textAdd body text 100,000 21,368 Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS 2021-22 (BUDGET) 2021-22 (ACTUAL) 2021-22 (BUDGET& CARRYOVER) 2021-22 (ACTUAL) Street and Pathway Lighting Safe and Clean Public Areas Downtown Safety Enhancements Sidewalk Annual Asset Maintenance Mission Plaza Restroom Replacements and Enhancements Bob Jones Trail and Railroad Safety Trail Solar Lighting Downtown Cleaning Equipment Street Lights - Annual Asset Maintenance 73,148 377,435 287,613 400,000 19,395 4,500 0 277,986 92,458 208,632 75,000 0 Safe and Clean Public Areas (FTE = 3)371,021 371,021 Subtotal $ 371,021 $ 371,021 $ 1,334,564 $ 602,971 LOCAL REVENUE MEASURE SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 One of the most notable design features of the Railroad Safety Trail (Taft to Pepper) project is the lighting. It has numerous lights which will help keep the pathway safe and well-lit at all hours of the day. 12 89,420 35,809 Add a subheading Community Safety and Emergency Preparedness 340,000 295,000 262,520 1,703,757 40,000 262,270 225,955 262,520 631,559 39,976 25,000 0 Subtotal $ 2,755,697$ 1,417,636 Fire Hydrant Replacement IT Replacements - Annual Asset Maintenance Account Police Station Replacement Fleet Replacement: Police Fleet Replacement: Fire Community Safety Emergency Response Communication Equipment Fire Station #3 & #4 Remodel Space Study and Design Community Safety and Emergency Preparedness (FTE = 8)1,417,636 1,417,636 LOCAL REVENUE MEASURE SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 CAPITAL PROJECTSOPERATING PROGRAMS 2021-22 (BUDGET) 2021-22 (ACTUAL) 2021-22 (BUDGET& CARRYOVER) 2021-22 (ACTUAL) Pictured above is Armando Gutierrez, the City's Safety and Training Captain - a new position added with the 2021-22 budget. The City's firefighters are trained to respond to a wide range of public assists from vehicle accidents to open space rescues. $ 1,417,636 $ 1,458,088 13 Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS 2021-22 (BUDGET) 2021-22 (ACTUAL) 2021-22 (BUDGET& CARRYOVER) 2021-22 (ACTUAL) 40,000 28,430 200,000 0 Youth/Senior Services and Recreation Facilities 220,035 220,035 1,977,135 120,000 1,213,866 26,778 110,000 0 $ 3,996,965 $ 1,817,772$ 341,009 $ 341,009Subtotal Laguna Lake Golf Course Maintenance Meadow Park Pathways Refurbishment Golf Course Pro Shop Flood Damage Repairs Parks Major Maintenance - Annual Asset Maintenance Parks and Recreation Master Plan Implementation Playground Equipment Replacement - Annual Asset Maint. Youth/Senior Services and Recreation Facilities (FTE = 3.5)341,009 341,009 LOCAL REVENUE MEASURE SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Parks and Recreation Interior Office Rehabilitation North Broad Street Neighborhood Park Construction Major Facilities Maintenance - Annual Asset Maintenance 150,000 150,000 175,000 1,004,795 178,663 0 14 100,000 20,878 211,000 172,738 Subtotal Banner Arm - Bench Rests - Signs Open SLO Annual Public Art Maintenance and Projects Neighborhood Greenways Public Art Downtown Public Art Installations Mission Plaza Maintenance Improvements Mission Plaza Arbor Refurbishment Add a subheadingAdd a subheadingCAPITAL PROJECTSOPERATING PROGRAMS 2021-22 (BUDGET) 2021-22 (ACTUAL) 2021-22 (BUDGET& CARRYOVER) 2021-22 (ACTUAL) Economic Development and Business Retention 200,000 72,515 11,216 92,500 0 62,800 275,000 88,730 $ 1,154,716 $ 417,661$ 998,688 $ 998,688 998,688 998,688 LOCAL REVENUE MEASURE SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Downtown Zig‐Zag Lighting 15,000 0 Economic Development and Business Retention 250,000 0 Mission plaza railing was replaced in 2021-22 as part of the Mission Plaza Maintenance Improvements Project. The "Open SLO" project continued supporting the downtown parklet program. 15 9,616 Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS 2021-22 (BUDGET) 2021-22 (ACTUAL) 2021-22 (BUDGET& CARRYOVER) 2021-22 (ACTUAL) $1,975,179 $ 1,003,562 17,000 9,616 279,583 300,000 631,000 17,000 109,577 217,500 68,908 100,000 137,980 500,000 30,053 137,980 412,928 Subtotal Fleet Replacements Annual Asset Maintenance Roundabout Public Art Installations Parking Lot Maintenance - Annual Asset Maintenance Multi-space On-Street Pay Stations Fleet Services Vehicle Lift Capital Projects Engineering Staff (6 FTE) Multi-site Energy Management Electric Vehicle Charing Stations Other Services and Projects Other Vital Services and Capital Projects TOTAL LOCAL REVENUE MEASURE USES $25,834,735 $13,997,294$6,912,660 $6,912,660 LOCAL REVENUE MEASURE SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 254,819 254,819 $254,819 $254,819 PRIORITIES SET BY THE CITY COUNCIL FOR FY 2020-21 INCLUDE: 17 Add a subheading 16 CITIZENS' REVENUE ENHANCEMENTCITIZENS' REVENUE ENHANCEMENT OVERSIGHT COMMISSIONOVERSIGHT COMMISSION Volunteer Residents Serve on the Commission The Revenue Enhancement Oversight Commission (REOC) reviews, reports, and makes recommendations directly to the City Council regarding the revenue and expenditures of the City's general purpose, half-percent sales tax. The REOC consists of five members who must be residents and registered voters of the city. Jim Hamari- Chair Keith Dunlop - Vice Chair Tony Skapinsky - Commissioner Christopher Ellwood - Commissioner Anthony Bozzano - Commissioner Street Maintenance and Transportation Community Safety Youth/Senior Services and Recreation Facilities Open Space Preservation Economic Development CITY OF SAN LUIS OBISPOCITY OF SAN LUIS OBISPO For more information, please visit: www.slocity.org/budget Photography: Kelly Donohue Photography City of San Luis Obispo PRIORITIES SET BY THE COUNCIL FOR FY 2021-22 INCLUDED: Creek and Flood Protection Safe and Clean Public Areas Addressing Homelessness Protecting Financial Stability Other Vital Services and Capital Projects The Local Revenue Measure funded Sinsheimer Hardscape replacement seen here as well as a new hydration station (pictured on pg. 15) HOW IS YOUR 1.5 PERCENT SALES TAX SPENT The Local Revenue Measure - also known as Measure G-20 is a one-and-a-half percent (1.5%) local sales tax approved by City voters in November 2020. It supports and maintains essential services and facilities, such as open space preservation, bike lanes and sidewalks, public safety, neighborhood street paving and code enforcement, flood protection, senior programs, and other services and capital improvement projects vital to a thriving community. The adopted community spending priorities help guide the Citizens' Revenue Enhancement Oversight Commission (REOC) when making recommendations to the City Council about Local Revenue Measure uses. The Council uses the REOC's input, and additional public feedback, to prioritize use of the Local Revenue Measure funding as part of the City's two- year financial plan process. WHAT IS THE LOCAL REVENUE MEASURE? ANNUAL COMMUNITY REPORT IN BRIEF Fiscal Year 2021-22 (July 2021-June 2022) This report in brief highlights the revenue and uses of the Local Revenue Measure from July 2021 and ending June 2022. The REOC will continue its oversight role on the use of the Local Revenue Measure to support accountability, transparency, and public engagement efforts. The Local Revenue Measure continues to be a vital resource to deliver the community's highest priorities and support San Luis Obispo's economic stability. Community members can learn more about the Local Revenue Measure by visiting www.slocity.org/ localrevenue. 2021-22 Local Revenue Measure funds were used on the following Council-adopted priorities: Mobile Crisis Unit Creek and Flood Protection The Local Revenue Measure funds the City's new Mobile Crisis Unit. The unit provides support services to anyone in the City and is designed to help prevent and reduce chronic homelessness. The program provides support to individuals suffering from non-emergency mental health challenges, drug and alcohol addiction, and chronic homelessness. The Mobile Crisis Unit pairs a mental health case worker with a fire department emergency medical technician. The Local Revenue Measure is vital in providing funding for the City's youth and senior services and recreation facilities. In collaborate with SLCUSD, the City provides school age childcare programs on City school campuses and subsidized care for qualifying families. The Local Revenue Measure funds some Youth Services staff as well as a Parks Maintenance Specialist. A major parks project completed in 2021-22 was the irrigation and drainage replacement, hardscape replacement, and new hydration station at Sinsheimer park. The Local Revenue Measure helps fund fire fuel reduction and flood control efforts. Rangers and flood control staff are instrumental in making sure that creeks are clear of debris. Responding to the damage from the January 2023 storms and preparing for future storm events will be a top priority for the City over the next several years. SPENDING HIGHLIGHTS Youth Services & Recreation Facilities YOUTH/SENIOR SERVICES AND RECREATION FACILITIES - $2.16 M 14% ECONOMIC DEVELOPMENT - $1.42 M7% STREET MAINTENANCE AND TRANSPORTATION* - $7.56 M36% COMMUNITY SAFETY - $2.88 M OPEN SPACE PRESERVATION - $2.03 M 10% 10% CREEK AND FLOOD PROTECTION - $1.49 M7% SAFE AND CLEAN PUBLIC AREAS - $974,0005% OTHER VITAL SERVICES AND CAPITAL PROJECTS - $1.26 M6% ADDRESSING HOMELESSNESS - $811,0004% PROTECTING FINANCIAL STABILITY - $329,0002% *Projects listed in the "Street Maintenance and Transportation" category also include significant bicycle and pedestrian improvements. Railroad Safety Trail and Bridge (Taft to Pepper Streets) The Local Revenue Measure helped fund one of the highest-priority multi-model transportation projects which connects Cal Poly to the Downtown Area. The project was completed in March 2022. Consistent with City goals, including climate action, the expansion of the Railroad Safety Trail from Taft to Pepper streets provides safer access for bicyclists and pedestrians while reducing greenhouse gas emissions. REVENUES Local sales tax revenue totaled $28.8 million in 2021–22, accounting for approximately 27 percent of general fund revenue. The Local Revenue Measure has generated more than $130 million since its original adoption in November 2006. For every $1 of revenue generated by the Local Revenue Measure, approximately 70¢ is paid by visitors and 30¢ is paid by City residents. $28.8M PROJECT SPOTLIGHT Operating Uses ($6.9M // 23%) – To fund positions that provide community services Examples of operating expenditures include funding for positions such as police officers, open space rangers, homelessness response positions, and flood control staff. Capital Uses ($23.6M // 77%) – To fund construction and investment in infrastructure & equipment Examples of capital expenditures include construction of major projects like the Orcutt Tank Farm Roundabout as well as the maintenance of City infrastructure. Orcutt Tank Farm Roundabout The Tank Farm Road and Orcutt Road Roundabout is a critical transportation infrastructure project identified in the both the General Plan and Orcutt Area Specific Plan to improve traffic operations and safety at this high-volume intersection with the ongoing construction of new housing within the Orcutt Area. The roundabout addresses ongoing congestion and vehicle queuing during peak commute periods, as well as provides dedicated crossings for bicyclists and pedestrians, improving multimodal connectivity between Islay Park and neighborhoods to the north. “The Greys in Between”, the permanent 3-legged sculpture at the center of the newly completed roundabout, was created by artist Anila Quayyum Agha. In exploring the intersections of race, class, culture, and religion, the piece celebrates minority and immigrant peoples’ contributions to our society and signifies San Luis Obispo as a community committed to being a welcoming place for all. CITY OF SAN LUIS OBISPO // For a complete list of 2021-22 Local Revenue Measure uses, view the full report at slocity.org/localrevenue USES Photo credit: Steven Heraldo