HomeMy WebLinkAboutItem 6b. 2023-25 Financial Plan Strategic Budget Direction and review of the Major City Goal Work ProgramCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: April 18, 2023
TO: Mayor and Council
FROM: Nickole Domini, Human Resources Director
Prepared By: Kate Auslen, Risk Manager
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6B. 2023-25 FINANCIAL PLAN – STRATEGIC BUDGET
DIRECTION AND MAJOR CITY GOAL WORK PROGRAM REVIEW
After the release of the Council Agenda Report, it was noticed that Recommendation #3
and the “CJPIA Excess Protection Program for Workers’ Compensation Coverage”
section in the staff report were incorrect. Please see the corrected recommendation and
CJPIA sections in highlight and strikethrough below.
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 6, 2023; and
3. Authorize participation in the Excess Protection Program (EPP) for workers’
compensation coverage.
a. Authorize the City Manager to accept a Memorandum of Coverage (MOC),
when finalized, from California Joint Powers Insurance Authority (CJPIA) for
the Excess Protection Program for workers’ compensation coverage and
execute any necessary documentation to enroll in that program. As an
example, an existing MOC with CJPIA is attached as Attachment B.
b. Adopt a resolution entitled, “A Resolution of the City Council of the City of
San Luis Obispo, California, to Authorize and Approve pooling of Self -
Insurance through the Excess Workers’ Compensation Protection Program
of the California Joint Powers Insurance Authority” (Attachment C
Attachment B). This includes contemporaneous execution by the Mayor of
an application for a Certificate of Consent, from the California Department
of Industrial Relations, for the City to self-insure workers’ compensation
liabilities, Attachment D a copy of which is attached as an Exhibit to the
Resolution.
c. Authorize the City Manager to execute an agreement with Athens
Administrators for third party administration services for the workers’
compensation program.
Page 705 of 829
Item 6b. 2023-25 Financial Plan Strategic Budget Direction Page 2
CJPIA Excess Protection Program for Workers’ Compensation
Coverage (Attachments B,C, and D Attachment B)
The City of San Luis Obispo became a member of the California Joint Powers
Insurance Authority (CJPIA) on July 1, 2004, for liability and workers’
compensation coverage. At that time, the only option available was the primary
program, where coverage was provided on a “first dollar” basis and member
agencies shared the risk and cost of claims by pooling their losses. In 2016, CJPIA
established an excess protection program (EPP), where member agencies could
choose to participate by selecting a Self -Insured Retention (SIR), or deductible,
that best fit their claims experience and tolerance for risk. During that year, the City
of San Luis Obispo moved from the primary program to the excess program for
liability with a $500,000 SIR, in exchange for a reduced member contribution
amount, or premium cost. This means that the City transitioned to paying claims
costs up to $500,000 before CJPIA liability coverage start ed paying the “excess”
costs beyond that amount.
Page 706 of 829
Item 6b
Department: Finance
Cost Center: 2002
For Agenda of: 4/18/2023
Placement: Business
Estimated Time: 150 minutes
FROM: Derek Johnson, City Manager
Prepared By: Emily Jackson, Finance Director
Natalie Harnett, Principal Budget Analyst
SUBJECT: 2023-25 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 6, 2023.
3. Authorize participation in the Excess Protection Program (EPP) for workers’
compensation coverage.
a. Authorize the City Manager to accept a Memorandum of Coverage (MOC), when
finalized, from California Joint Powers Insurance Authority (CJPIA) for the Excess
Protection Program for workers’ compensation coverage and execute any
necessary documentation to enroll in that program. As an example, an existing
MOC with CJPIA is attached as Attachment B.
b. Adopt a resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, to Authorize and Approve Pooling of Self -Insurance through the
Excess Workers’ Compensation Protection Program of the California Joint Powers
Insurance Authority” (Attachment C). This includes contemporaneous execution
by the Mayor of an application for a Certificate of Consent, from the California
Department of Industrial Relations, for the City to self -insure workers’
compensation liabilities, Attachment D.
c. Authorize City Manager to execute an agreement with Athens Administrators for
third-party administration services for the workers’ compensation program.
POLICY CONTEXT
The City Charter under Article VIII, Sections 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.
Page 707 of 829
Item 6b
California Government Code Sec 539011 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 are considered by the City Council during the public
hearing.
DISCUSSION
Strategic Budget Direction (Attachment A)
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. 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.
This critical juncture affords the City Council an early opportunity to review these key
budget allocations and proposed work programs to accomplish ongoing services as well
as Major City Goals established by the City Council in February 2023. 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.
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 as follows:
1 Unless exempted by the county auditor 60 days after the beginning of its fiscal year, every local agency,
including every special purpose assessing or taxing district with the county shall file with the county auditor
of the county in which it conducts its principal operations, a copy of its annual budget. The county auditor
shall hold on file the annual budget of such special purpose assessing or taxing district or local agency for
public inspection at all reasonable hours. If a local agency or special purpose assessing or taxing district
does not have a formal budget, it shall file a listing of its anticipated revenues, together with its expenditures
and expenses for the fiscal year in progress. The county auditor shall hold on file such statement for public
inspection at all reasonable hours
Page 708 of 829
Item 6b
A. Major City Goals (MCG). This section includes the proposed work programs
for MCGs.
B. The General Fund. This section includes the budget allocations for existing
ongoing community services as well as the new 2023-25 budget
recommendations for the General Fund. An updated long-term financial outlook
is also included.
C. Enterprise Funds. This section includes the operating budget allocations for
the City’s enterprise funds as well as new 2023-25 budget recommendations.
Updated long-term financial outlooks and CIP summaries are also included.
D. Local Revenue Measure (LRM) Revenues and Uses. This section includes
the proposed use of the local revenue measure that reflects recommendations
by the Revenue Enhancement Oversight Commission.
E. Capital Improvement Plan (CIP). This section provides an overview of the
recommended five-year CIP and associated projects.
Appendix A: Descriptions for Significant Operating Budget Changes
summarized in Section B.
CalPERs
The City contracted with Foster and Foster, and actuarial consulting firm to complete an
updated CalPERs analysis that will help the City to understand the progress it has made
in its strategic plan to pay down its CalPERs unfunded liabilities. The last time a
comprehensive analysis was done was in 2017. Since that time the City has made over
$19 million in supernumerary payments that will drastically help the organization’s
financial condition in the long term. The analysis will be finalized in the next two weeks
and published via agenda correspondence before the meeting on April 18, 2022. The
consultant will be providing a short presentation as part of Strategic Budget Direction .
The results of this analysis will help staff to determine what updates to the long-term
forecast are necessary and will support continued budget planning to allocate resources
towards paydown of the City’s unfunded liabilities.
CJPIA Excess Protection Program for Workers’ Compensation
Coverage (Attachments B, C and D)
The City of San Luis Obispo became a member of the California Joint Powers Insurance
Authority (CJPIA) on July 1, 2004, for liability and workers’ compensation coverage. At
that time, the only option available was the primary program, where coverage was
provided on a “first dollar” basis and member agencies shared the risk and cost of claims
by pooling their losses. In 2016, CJPIA established an excess protection program (EPP),
where member agencies could choose to participate by selecting a Self -Insured Retention
(SIR), or deductible, that best fit their claims experience and tolerance for risk. During that
year, the City of San Luis Obispo moved from the primary program to the excess program
for liability with a $500,000 SIR, in exchange for a reduced member contribution amount,
or premium cost. This means that the City transitioned to paying claims costs up to
$500,000 before CJPIA liability coverage started paying the “excess” costs beyond that
amount.
Page 709 of 829
Item 6b
In early 2023, a cost analysis was completed showing that the transition to the excess
program for liability has resulted in savings of approximately $400,000 per year for the
past six years. Similarly, a cost analysis was completed to explore transitioning from the
primary program to the excess program for workers’ compensation. The cost analysis
showed that transitioning to the excess program for workers’ compensation wit h a
$500,000 SIR will lower premium costs and potentially claim costs compared to the
primary program. The 2023-2025 Financial Plan budget has been prepared assuming
that the City transitions to the SIR program and to both balance the budget, save costs,
and have more control and insight about the management and payment of workers’
compensation claims.
Rather than pay a $3,174,493 member contribution, or premium, under the primary
program for “first dollar” coverage, the City would pay a discounted rate of $792,700, plus
anticipated direct claim costs of approximately $1,559,977 (based on a five year average)
and a state assessment fee of $71,400. This results in a total cost of $2,424,077 and an
approximate savings of $750,416 in fiscal year 2023-24. The City’s member contribution
to CJPIA for the primary program is expected to increase by 20% each year for the next
five years, due to higher-than-normal workers’ compensation claims, so switching to the
excess program at this time is particularly advantageo us. The average increase for the
past 13 years has been 8.6%.
As with the excess program for liability, once the fiscal year closes, any extra funds that
were not needed to pay for claims would return to the insurance fund reserve to pay future
claim costs.
In order to join the excess program effective July 1, 2023, staff recommends Council
adopt the attached resolution to join the CJPIA Workers’ Compensation Excess
Protection Program, as well as the resolution to apply for authorization to self -insure with
the State of California; and authorize the City Manager to execute the Memorandum of
Coverage (MOC) with CJPIA, as well as an agreement with Athens Administrators for
third party administration, provided there are no substantive changes when finalized.
Previous Council or Advisory Body Action
The City’s two-year financial plan process includes a high degree of public engagement
and input ranging from community surveys, outreach to community gro ups 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.
Public Engagement
Public comment on the item can be provided to the City Coun cil through written
correspondence prior to the meeting and through public testimony at the meeting. The
2023-25 Strategic Budget Direction Report will also be posted on the City’s website for
public review.
Page 710 of 829
Item 6b
CONCURRENCE
All departments participated in the development of the 2023-25 financial plan and
submitted SOBCs, CIPs and Major City Goal Work Programs to accomplish the City
Council’s goals and desired accomplishments. The Revenue Enhancement Overs ight
Commission (REOC) met on March 30, 2023 to review the proposed uses of LRM
funding. The REOC supports the proposed budget allocations as they are in line with the
LRM priorities.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under CEQA
Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-25
Funding Identified: Yes
Fiscal Analysis:
There is no direct fiscal impact from Strategic Budget Direction because the purpose is
to provide feedback and guidance to the City Manager regarding the recommended
strategic budget direction and proposed budget allocations to commence budget adoption
on June 6, 2023. There may be minor changes to the forecast or base budgets between
Strategic Budget Direction and budget adoption, but any significant changes will be
highlighted in the report.
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 funding the reserve to the highest level possible2.
Full budget detail is found within each fund’s foreca st and SOBC detail for the General
Fund is included in Attachment A – Appendix A.
2 Storm repair and response costs will require drawdown of the reserve; however, any revenue above
expenditures will be used to replenish the reserve to the highest degree possible as year -end. See
Attachment A – Section B-4.
Page 711 of 829
Item 6b
ALTERNATIVES
The Strategic Budget Direction report provides the Council with budget recommendations
based on the community input and the Council’s strategic planning dire ction 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 6, 2023.
ATTACHMENTS
A - Strategic Budget Direction Report
B - Draft Resolution approving Pooling of Self-Insurance through the Excess Workers’
Compensation Protection Program of the California Joint Powers Insurance Authority
C - Exhibit 1 to the Draft Resolution – Application for Consent to Self -Insurance
D - Exhibit 2 to the Draft Resolution – California JPIA Joint Powers Agreement
Page 712 of 829
Strategic Budget Direction
for the 2023-25 Financial Plan
Council Meeting: April 18, 2023
Table of Contents
Strategic Budget Direction ........................................................................................................................... 1
Section A: Major City Goals (MCGs) .............................................................................................................. 2
A-1. Economic Resiliency, Cultural Vitality & Fiscal Sustainability ............................................................ 4
A-2. Diversity, Equity, Inclusion (DEI) ........................................................................................................ 8
A-3. Housing and Homelessness .............................................................................................................. 13
A-4. Climate Action, Open Space and Sustainable Transportation ......................................................... 18
Section B: General Fund .............................................................................................................................. 24
B-1. Current Services and Programs ....................................................................................................... 24
B-2. 2023 Employee Engagement Survey ............................................................................................... 28
B-3. Significant Operating Budget Changes (SOBCs) ............................................................................... 28
B-4. General Fund Financial Outlook ...................................................................................................... 32
Section C: Enterprise Funds ........................................................................................................................ 35
C-1: Water Fund ...................................................................................................................................... 35
C-2: Sewer Fund ...................................................................................................................................... 43
C-3: Parking Fund .................................................................................................................................... 50
C-4: Transit Fund ..................................................................................................................................... 54
Section D: Local Revenue Measure ............................................................................................................. 58
Section E: Capital Improvement Plan .......................................................................................................... 64
2023-25 Proposed CIP ............................................................................................................................. 76
1.Projects by Type .......................................................................................................................... 76
2.CIP Expenditures by Category ..................................................................................................... 77
3.CIP Expenditures by Fund – All Funds ......................................................................................... 78
4.CIP Expenditures by Major City Goal .......................................................................................... 79
5.CIP Expenditure by Project Type ................................................................................................. 80
Appendix A – General Fund SOBC Descriptions .......................................................................................... 83
Budget Document Pg. 1 Page 713 of 829
Section A: Major City Goals
Section A: Major City Goals (MCGs)
The fundamental purpose of the City’s budget process is to link, through public engagement and strategic
deliberation, the interest of the community to the available financial resources to achieve the desired
outcome. Over the last six months the City Council has engaged the community in identifying Major City
Goals while also providing information regarding the City’s core functions, including day-to-day work
programs and responsibilities carried out by City employees to support resident quality of life and
community well-being.
The four Major City Goals for the 2023-25 Financial Plan are essentially the same goals as the 2021-23
Financial Plan with modified work programs to fit current community needs and available resources. Most
efforts from the 2021-23 Financial Plan will continue into 2023-25. Some 2021-23 work program tasks
that are ongoing in nature have been removed from the new lists and are instead incorporated in the
departments’ base budget and normal operations or core services. The strategy behind the more
consolidated 2023-25 work programs is that it will allow the organization to focus on action items that are
most important to the community and achievable with the available resources. The challenge with
removing some 2021-23 work program tasks is that there may not be council and community visibility of
core services that are in fact supporting Major City Goals.
Budgeting to Accomplish Major City Goals
In the past, the City has tried to quantify all of its efforts towards
Major City Goals through the use of budget allocations; however, this
is an imperfect method and dilutes the purpose behind setting Major
City Goals. Major City Goals are intended to guide strategic direction
for the City, and while it is important to understand that there is a
fiscal impact to deliver on goals, budget cannot always be used as a
measurement tool. Over the last seven years, the City’s most
important goals have stayed relatively consistent and because of that, the City has been able to create
ongoing work programs that help to achieve the goals on top of delivering core services. Programs such
as DEI, Housing and Homelessness, and the Mobile Crisis Unit are now part of ongoing City operations.
More broadly, all departments provide some degree of internal support to the lead departments in
achieving Major City Goal efforts. General Fund operating program budgets can be found in Section B-1
of this report.
The Major City Goal work programs highlight which work efforts require new funding and the associated
funding can be found in the Section B-3 or within the Capital Budget1. The rest of the identified work
program tasks will be executed using existing resources. With the 2023-25 Financial Plan document (to be
presented on June 6, 2023), the department writeups link their department goals with the overarching
Major City Goals and identify involvement in achieving goals.
Included in this Section:
MCG Goal Overview – Expectations, Stakeholders, Strategic Approach
MCG Work Program Details – Specific work program tasks/actions associated with each goal.
1 Not all MCG-related CIP Projects are listed in the work programs; however, staff included any core projects or
new projects.
Budget Document Pg. 2 Page 714 of 829
Section A: Major City Goals
Council Approved Major City Goals (not numbered by priority):
1. Economic Resiliency, Cultural Vitality and Fiscal Sustainability (ERCV & FS): In collaboration with
local partners, implement initiatives that reinforce a thriving and sustainable local economy,
support a diverse, inclusive, and vibrant community, preserve arts and culture, and ensure fiscally
responsible and sustainable city operations.
2. Diversity, Equity and Inclusion (DEI): Further our commitment to making San Luis Obispo a
welcoming and inclusive city for all by continuing to incorporate diversity, equity, and inclusion
into all programs and policies and advancing the recommendations of the DEI Task Force.
3. Housing and Homelessness: Support the expansion of housing options for all, and continue to
facilitate the production of housing, including the necessary supporting infrastructure, with an
emphasis on affordable and workforce housing as well as accessibly connected development.
Collaborate with local non-profit partners, non-governmental agencies, the county, the state, and
federal governments to advocate for increased funding and implementation of comprehensive
and effective strategies to prevent and reduce homelessness and chronic homelessness.
4. Climate Action, Open Space and Sustainable Transportation: Proactively address the climate
crisis and increase resiliency through the implementation of the Climate Action Plan. Use
resources to reduce greenhouse gas emissions and reach carbon neutrality by 2035, with a focus
on the preservation and enhancement of convenient and equitable alternative and sustainable
transportation, the preservation of open space, and equitable access to parks and open space.
Budget Document Pg. 3 Page 715 of 829
Section A: Major City Goals – ERCV & FS
A-1. Economic Resiliency, Cultural Vitality & Fiscal Sustainability
Goal Statement: In collaboration with local partners, implement initiatives that reinforce a
thriving and sustainable local economy, support a diverse, inclusive, and vibrant community, preserve
arts and culture, and ensure fiscally responsible and sustainable city operations.
Expectations: The City will engage and expand up on its community partnerships and invest in
infrastructure, promotion, programs, and polices that support the economic resiliency and cultural
vitality of the community while ensuring fiscal sustainability. Additional focus will be placed on the
retention and expansion of existing businesses, the vitality 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 Resiliency, Cultural Vitality & Fiscal Sustainability (ERCS&FS) MCG
will require the support and engagement from all City departments with special focus provided by
Community Development, Public Works and Parks and Recreation 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 – Sustainable, Diverse, and Inclusive
The City will ensure that the economic resiliency and cultural vitality efforts are focused on
sustainability, diversity and inclusion in alignment with both the City’s Sustainability program and the
Diversity, Equity, and Inclusion program.
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 include but not be limited to business expansion,
retention, attraction, promotion and programs for new and existing businesses. In addition, the City
will focus on efforts to make it easier for employers and employees by continuing to focus on permit
processing improvements and childcare.
Strategy 1.3 – Downtown Vitality
The City will support the unique needs of the downtown through specific promotional efforts, support
services, cleanliness & safety programs and infrastructure investment.
Strategy 1.4 – Support Arts and Culture
The City will support the vitality of the Arts and Cultural activities within the City by working with
existing and new community partners.
Strategy 1.5 – Ensuring Fiscal Responsibility and Sustainable City Operations
The City will continue to focus fiscal responsibility and 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. In addition, based on the results of the 2023 Employee
Engagement Survey, there will be continued focus to support and prioritize workforce development to
ensure City employees have the tools and resources to effectively serve the community.
Budget Document Pg. 4 Page 716 of 829
Strategic Approach # Task/ Action Status (if in progress already)Responsible Department(s)New FundingCompletion Date1.1 Sustainable, Diverse, and Inclusive Economic Development1.1a. Implement the relevant actions in the updated Economic Development Strategic Plan (EDSP) focusing on those relevant to Economic Resiliency, Cultural Vitality and Fiscal Sustainability.The EDSP update is in progress and expected to come to Council in July 2023 for approval. ADM (ED&T) x Ongoing1.1b. Continue to partner with the Office of Sustainability to implement the economic development related actions in the Climate Action Plan (CAP) as well as the sustainability related actions in the updated Economic Development Strategic Plan (EDSP)The Office of ED&T and the Office of Sustainability will continue to coordinate the relevant activities. ADM (ED&T/Sustainability)Ongoing1.1c. Continue to partner with the Office of Diversity, Equity and Inclusion (DEI) to implement the economic development related actions in the DEI major City goal and planned DEI strategic framework as well as the DEI related actions in the updated Economic Development Strategic Plan (EDSP)The Office of ED&T and the Office of DEI will continue to coordinate the relevant activities. ADM (ED&T/DEI)Ongoing1.1d. Continue to monitor local labor participation in major City projects and adjust the City's efforts as needed to ensure local labor participation through the use of Community Workforce Agreements and other similar tools. Work to finalize CWA for Prado Overpass and Public Safety Center.The program to monitor the local labor participation as well as the policy development for the use of CWA's has been implemented. PW/UtilOngoing1.1 e. Continue to update the employment scorecard and the economic activity scorecard.The employment report card is developed and is available to be continued if funded. The economic activity scorecard is 75% complete and will be complete and operational by the end of the fiscal year. ADM (ED&T)/CDD/PW/FINx Ongoing1.2 Business Support1.2a. Continue activations, promotions and programs like "Buy Local Bonus", "Eat Local Bonus" and "Shop local" to build economic resiliency through out the City and including downtown. The main programs are established but unfunded on an ongoing basis. Additional funding is being requested to expand the potential programs.ADM (ED&T) x Ongoing1.2b. Continue to work with 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. Ongoing work effort.ADM (ED&T)Ongoing1.2c. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID and the PCC. Ongoing work effort.ADM (ED&T)Ongoing1.2d. Continue to focus on efficiency and transparency in the permitting process through implementation of new tools, performance management reporting, and enhanced customer transparency tools. Report recurring performance measures or permit processing times during General Plan Annual Report.Ongoing work effort.CDDOngoing1.2e. Ensure broad and inclusive engagement in area and specific plans updated by the Community Development Department to represent the needs of local businesses. Ongoing work effort.ADM (ED&T)/CDDOngoing1.2f. Conduct outreach and engagement with property owners and businesses in the Upper Monterey Special Focus Area to confirm scope in pursuing an area plan consistent with Land Use Element Policy 8.2.2.New work effortCDDFY 25 Q4 Table 1a. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work ProgramSection A: Major City Goals - ERCV & FSBudget Document Pg. 5Page 717 of 829
Strategic Approach # Task/ Action Status (if in progress already)Responsible Department(s)New FundingCompletion DateTable 1a. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work Program1.2g. Continue to support new and expanded private childcare options through the use of grant funding and other programs. Ongoing work effort. ADM (ED&T) Ongoing1.2h. Continue to support the childcare options for school age children through the City's own programs and programs in conjunction with other partners. Ongoing work effort. P&R Ongoing1.2i. Proactively evaluate and implement after briefing council on opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employers for employer supported childcare programs. New work effort. P&R Ongoing1.2j. Represent the interests of the business community during the implementation of the broadband strategic plan. Ongoing work effort. ADM (ED&T) Ongoing1.3 Downtown Vitality1.3a. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth, and vitality of the Downtown. Ongoing work effort. ADM (ED&T) Ongoing1.3b. Continue to financially and operationally support Downtown SLO during the winter holidays including incentivizing private participation through the matching program.Ongoing work effort.ADM (ED&T)Ongoing1.3c. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and homelessness support. Ongoing work effort.ADM (ED&T)Ongoing1.3d. Develop a Council report and Study Session on downtown vacancies, the status and possible options to address any issues identified. New work effort.ADM (ED&T)FY24 Q21.3Develop an implementation plan for the recently adopted Access and Parking Management Plan and begin execution of the plan.Ongoing work effort.PWOngoing1.3 f. Begin construction of the Cultural Arts District Parking Structure.Ongoing work effort.PWFY24 Q21.3g. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council Direction.Ongoing work effort.PWOngoing1.4 Support Arts and Culture1.4a. Continue to work with our community partners to ensure the Cultural Vitality of the City.Ongoing work effort.P&R/ADM (NR&S)/ADM (ED&T)Ongoing1.4 b. Continue to execute the City's public art master plan. Ongoing work effort.P&ROngoing1.4c. Ensure that the City promotes the various City and privately owned art installations through programs like the public art promotional plan developed by the PCC.Ongoing work effort.ADM (ED&T)Ongoing1.4d. Continue to financially support the Arts and Cultural Activities of the City through the PCC's GIA program and the additional grant funding via the PCC.Ongoing work effort.ADM (ED&T) x Ongoing1.4 e. Continue the citywide banner program. Ongoing work effort.ADM (ED&T)xOngoing1.4f. Continue to support the preservation of the City's adobes, including work on the La Loma Adobe through a phased approached intended to ensure that the structure is ready for active stablization efforts by 2025. Ongoing work effort.ADM (NR&S) x FY25 Q41.4g. Initiate implementation of the consultant recommended phased approach to update the City's historic resources inventory.New work effort.CDDx FY24 Q2Section A: Major City Goals - ERCV & FSBudget Document Pg. 6Page 718 of 829
Strategic Approach # Task/ Action Status (if in progress already)Responsible Department(s)New FundingCompletion DateTable 1a. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work Program1.4h. Develop a Council Memorandum on the current base level of economic support for Arts and Cultural activities across the various departments in the City. New work effort. ADM (ED&T) FY24 Q21.5 Ensuring Fiscal Responsibility and Sustainable City Operations 1.5Continue to implement and enhance the City's sound financial management practices to support stability of the organization and services provided to the community.Ongoing work effort. Fin Ongoing1.5b. Conduct a Study Session on alternative capital project delivery options and determine whether Council wishes to proceed with a Charter Amendment. New work effort. PW/Util FY24 Q41.5 c. Implement a City fee program update.New work effort.CSGFY24 Q31.5 d. Implement a Development impact fee (AB1600) study and update. New work effort.CSGFY24 Q31.5 e. Monitor Public Banking advances and alert the City Council to major changes. New work effort.FinOngoing1.5f. Continue to support and prioritize employee development and growth through investing in resources to train, develop, and onboard new and transitioning employees. Ongoing work effort.HR/AllOngoing1.5g. Continue to support employees in managing their workloads by reviewing and prioritizing work efforts, goals, and balancing trade‐offs for a new workload.Ongoing work effort.HR/AllOngoing1.5h. Continue to evaluate and adjust internal meetings to create more effective meeting practices.Ongoing work effort.HR/AllOngoing1.5i. Continue promoting cross‐department communication and collaboration amongst employees.Ongoing work effort.HR/AllOngoing1.5j. Continue to evaluate and enhance the training and usability of Oracle Cloud, the City's Enterprise Resource Planning/Human Capital Management software.Ongoing work effort.IT/Fin/HROngoingSection A: Major City Goals - ERCV & FSBudget Document Pg. 7Page 719 of 829
Section A: Major City Goals – DEI
A-2. Diversity, Equity, Inclusion (DEI)
Goal Statement:
Further our commitment to making San Luis Obispo a welcoming and inclusive city for all by continuing
to incorporate diversity, equity, and inclusion into all programs and policies and advancing 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 underserved/underrepresented communities and diverse voices in program
development and delivery to ensure current lived experiences drive understanding, priorities,
and efforts.
3. Partner with proven community providers and utilize best practice and innovative 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, Park & 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 1.1 – Operationalize Office of DEI
Continue the ongoing commitment to meaningful, structural, and lasting operationalization of DEI
strategies and efforts with the organization and the community. Further develop and strengthen equity,
inclusion, cultural awareness and humility by creating activities, outreach, programs that enhance skills
and knowledge. Enhance partnerships and provide support to departments in embedding DEI in all
practices, policies, and processes throughout the organization.
Strategy 1.2 – Develop & Implement DEI Strategic Plan
Create a comprehensive and adaptable Strategic Plan by utilizing the DEI Task Force Recommendations
as foundation, and other key community documents for reference and benchmarking. Roll out and
implement the DEI Strategic Plan ensuring qualitative and quantitative data outcomes and metrics are
embedded in program and project implementation.
Strategy 1.3 – Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices
Develop and implement innovative and proven strategies, programs, and policies that successfully
attract, engage, retain, develop, and support a diverse workforce. Emphasize the development of
internal candidates, broaden outreach, recruitment, advertising, and removing screening and selection
bias in hiring processes.
Strategy 1.4 – Enhance Inclusive & Equitable Workplace Environment
Budget Document Pg. 8 Page 720 of 829
Section A: Major City Goals – DEI
Enhance and expand a welcoming and inclusive environment where all employees feel valued and
included. Develop and implement DEI training and professional development, remove barriers from
learning by developing interpersonal connections, improving and increasing dialogue and
communication, integrating DEI into department’s operations, and growing interest in DEI practices
among all employees.
Strategy 1.5 – Community-based Policing & Restorative Practices
Identify strategies that promote best alternative methods to policing and provide the community voice
for structural change. Enhance and maintain cultural humility and DEI trainings for officers to build and
support understanding, strengthen relationships, and intentionally center the needs of the BIPOC and
diverse communities.
Strategy 1.6 – Enhance and Expand Cal Poly & Cuesta College Partnerships & Educational
Opportunities
Increase shared programming, training, community-building resources, and collaborative planning to
enhance access and belonging for all City residents. Increase educational and cultural event offerings
to the community at large, and convene regular roundtable meetings with the City, Cal Poly, Cuesta
College leadership and students.
Strategy 1.7 – Strengthen Public Access and Engagement Through Transformational Strategies
Increase access and engagement for the public by enhancing and diversifying internal practices that
reflect understanding, cooperation, and meaningful participation of staff. Sponsor and support
outreach activities and experiences that highlight the City’s historically marginalized populations and
create safe and brave spaces for all communities.
Strategy 1.8 – Equity & Inclusion in Budgeting, Planning, Programming & Policymaking
Focus efforts in reviewing and incorporating DEI language and lens into budgeting, planning,
programming, and policymaking processes and practices that define City initiatives and strat egies.
Continue to provide support to departments and community organizations to diversify DEI applications
based on available resources. Embed DEI staff into City leadership group opportunities to further
expand and influence practice.
Budget Document Pg. 9 Page 721 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion Date2.11. Operationalize Office of DEI2.1a. Based on the completion of the DEI Strategic Plan, determine the ongoing support structure needed in the Office of DEI to optimally deliver organizational and communityprograms and services.Ongoing work effortAdmin‐DEIOngoing2.1 b. Work with Cal Poly and Cuesta to host interns.Ongoing collaboration with Cal Poly to establish this effort.Admin‐DEIOngoing2.1c. Further develop purpose, role, activities, and enhance impact of DEI Employee Committee, including equal standing and priority to tasks and responsibilities assigned to the members (e.g. ERGs, newsletters, cultural celebrations, trainings, internal communication, public web pages, etc.).Ongoing work effort to establish charter and functions for the committee.Admin‐DEIOngoing2.1d. Continue to support and act as the staff liaison to the Human Relations Commission (HRC).2.1e. Continue to provide grant support to the HRC for DEI High Impact Grants, Community Development Block Grants and Human Services Grants and complete necessary follow up and reporting with grant recipients.Ongoing work effortAdmin‐DEIOngoing2.22. Develop & Implement DEI Strategic Plan2.2a. Complete a DEI Strategic Plan for comprehensive DEI initiatives and programming forthe organization and community based on needs, priorities, and resource assessments.Ongoing work effort. A framework is to be developed based on the DEI Taskforce's recommendations.Admin‐DEIFY 23‐24 Q2/Q32.2b. Implementation of prioritized programs as outlined in the DEI Strategic Plan within available resources.Ongoing implementation of elements approved by the DEI Strategic plan to begin in Fall of 2023 and early Winter of 2024.Admin‐DEIOngoing2.33. Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices2.3a. Continue to enhance job descriptions and recruiting materials such as materials in Spanish or in different formats to easy access. Ongoing work effortHROngoing2.3b. Assess and develop enhancements processes such as implementing DEI‐focused screening and interviewing trainings to personnel and interview panels.Ongoing work effortHROngoing2.3 c. Create and rollout DEI‐focused trainings for employees.Ongoing work effortHROngoing2.3 d. Examine policies and programs to support primary caretakers.Ongoing work effortHROngoing2.3e. Continue communicating childcare options and resources for City employees; additional to First 5 findings. Explore flex schedules, job share, remote options, etc.Ongoing work effortHROngoing2.44. Enhance Inclusive & Equitable Workplace Environment2.4a. Develop and adopt a DEI statement for the organization.Ongoing work effortAdmin‐DEIFY 23‐24 Q12.4 b. Develop and implement a DEI module in new hire onboarding process.Ongoing work effortHROngoing2.4c. Provide DEI‐related training for all staff of all levels (Council, Commission, AdvisoryBoard, Directors, Managers, Staff, etc.).Ongoing work effortAdmin‐DEI/HROngoing2.4d. Complete a planning study for gender‐inclusive restroom and sleeping facilities for Fire Stations 3 & 4. Procees with design work pending results of study.Ongoing work effort with Public Works to determine feasibility and implementation.Public Works/FireOngoingTable 1b: Diversity, Equity, Inclusion Major City Goal Work ProgramSection A: Major City Goals - DEIBudget Document Pg. 10Page 722 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable 1b: Diversity, Equity, Inclusion Major City Goal Work Program2.55. Community‐based Policing & Restorative Practices 2.5 a. Promote DEI best practices in Police Department (PD) recruting and hiring efforts.Ongoing work effort in collaboration with Admin‐DEI, PD, and HR Admin‐DEI/PD/HR Ongoing2.5b. Work in partnership with Facilities and PD to ensure new public safety building design is equitable and inclusive for the community and all department employees.Ongoing work effort in collaboration with Admin‐DEI, PD, and Public Works Admin/PD/Public Works Ongoing2.5c. Continue to work with community partners (PAC and Roundtable) to give the community a voice in policing and that 21st Century Policing Recommendations are implemented where possible.Ongoing work effortPD Ongoing2.5d. Use Community partnerships to help build a 5‐year strategic plan to create transparency and legitimacy.Ongoing work effortPD Ongoing2.66. Enhance and Expand Cal Poly & Cuesta College Partnerships and Educational Opportunities2.6a. Establish bimonthly collaborative and informative meetings with Cal Poly Office of University Diversity & Inclusion and Cuesta College Office of Student Equity & Special Programs to futher explore partnerships around education and training.Ongoing work effortAdmin‐DEI Ongoing2.6b. Utilize the Assistant VP for Strategic Planning and Network at Cal Poly OUDI to research best practices, grants for interships, programs, outreach, innovative practices, etc.Ongoing work effortAdmin‐DEIOngoing2.6c. Host City/Cal Poly quarterly roundtable (City & Cal Poly leadership, DEI Employee Committee, HRC, Cal Poly students, DEI Leaders, Cuesta College, etc.) regarding community/student experience, relationship‐building and partnership programs. Ongoing work effortAdmin‐DEIOngoing2.6d. Explore and develop shared multicultural programming, activities, and events with Cal Poly, Cuesta College, and Non‐profit partners through a pilot and/or pop up multicultrual center experience.Ongoing work effortAdmin‐DEIOngoing2.6 f. Contract to develop a feasbility study for a mulitcultural center.Ongoing work effortAdmin‐DEIOngoing2.77. Strenghten Public Access and Engagement through Transformational Strategies2.7a. Support the development and implementation of the Broadband Strategic Plan to ensure access is equitable and pursue funding to fill gaps. Ongoing work effort in collaboration with the IT Department to reach out to various communities.Admin‐DEI/ITOngoing2.7b. Continue to provide Community Academy program in even numbered years including application outreach to underserved/underrepresented communities.Ongoing work effortAdmin‐DEIOngoing2.7c. Complete training for applicable staff on the City's updated Public Engagement & Noticing (PEN) to ensure diverse participation.Ongoing work effortAdmin‐DEIOngoing2.82.8 Equity & Inclusion in Budgeting, Planning, Programming & Policymaking2.8a. Review and embed DEI language into existing policies and procedures, codes of conduct within facilities, parks, programs, events, and rentals for services provided to the community.New work effortAdmin‐DEIOngoing2.8 b. Include DEI Manager Financial Planning Steering Committee meetings.New work effortAdmin‐DEIOngoingSection A: Major City Goals - DEIBudget Document Pg. 11Page 723 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable 1b: Diversity, Equity, Inclusion Major City Goal Work Program2.8c. Edit existing and create new policies and procedures that reflect a DEI lens for internal processes to ensure all City Departments support the DEI MCG.New work effortAdmin‐DEI Ongoing2.8d. Provide financial assistance to qualified families through City funded scholarships for youth related programs such as: before/after‐school childcare, spring break & summer camps, swim lessons, and after‐school sport programs. Ongoing work effortParks & RecXOngoingSection A: Major City Goals - DEIBudget Document Pg. 12Page 724 of 829
Section A: Major City Goals – Housing and Homelessness
A-3. Housing and Homelessness
Goal Statement:
Support the expansion of housing options for all, and continue to facilitate the production of housing,
including the necessary supporting infrastructure, with an emphasis on affordable and workforce
housing as well as accessibly connected development. Collaborate with local non-profit partners, non-
governmental agencies, the county, the state, and federal governments to advocate for increased
funding and implementation of comprehensive and effective strategies to prevent and reduce
homelessness and chronic homelessness.
Expectations:
The City will prioritize Housing Element policies and programs that focus on facilitating the increased
production of housing; the City will implement the Homelessness Response Strategic Plan and 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 City will clean-
up creeks, open space areas, City Parks and public spaces associated with abandoned personal property
and trash; and the City will focus on public safety through support for the SLO PD bike patrol program
and new Community Service Officer program.
Housing Element Implementation
1. Initiate a missing middle housing program that enables "house-scale" multi-family housing
opportunities (duplex, tri-plex, bungalow court, etc.) in to be identified neighborhoods where
existing infrastructure (e.g., arterial and collector streets, complete neighborhoods) can
support additional infill and intensification.
2. Initiate an update to the Margarita Area Specific Plan to include more housing options of all
types (affordable, multi-family, mixed-use) on undeveloped land, and work with property
owners on a plan for the completion of the Prado Road extension to Broad Street.
3. Initiate an update to the Airport Area Specific Plan to allow mixed-use residential development,
where appropriate and consistent with the County Airport Land Use Plan.
4. Conduct a Study Session with the City Council to identify needs and opportunities across the
housing spectrum, including various types of transitional and supportive housing options.
5. Implement Below Market Rate Housing best practices including leveraging affordable housing
fund revenues, down payment assistance programs, streamlined processing of loan
documents, and updated policies and procedures.
Homelessness Response Strategic Plan Implementation
1. Work collaboratively with County and key stakeholders to coordinate regional encampment
and street outreach, including an expanded hotel voucher program to ensure a bridge for
temporary emergency shelter.
2. Increase homelessness response communications, resource sharing, and education, including
increasing use of Ask SLO app.
3. Expand implementation of digital encampment management tool internally and for potential
countywide use.
4. Leverage additional funding from other partner agencies for Mobile Crisis Unit (MCU) program,
and Community Action Team (CAT) and service expansion; develop sustainable safe parking
programs; and pilot additional transitional shelter programs with regional partners.
Budget Document Pg. 13 Page 725 of 829
Section A: Major City Goals – Housing and Homelessness
5. Support County and regional partners in pursuing and implementing funding if successful for
resources for services, and transitional and permanent supportive housing, including
Encampment Resolution Funding and Project Homekey grants.
6. Continue to develop the City's Safe Housing Outreach and Education Program, including
preparation of a Council Memo on options for protecting renters, including homelessness
prevention strategies.
7. Monitor and update the two-year Homelessness Response Strategic Plan to align with
Countywide Plan to Reduce Homelessness, other regional and state opportunities, and in
advance of next City financial plan.
Environmental Clean-up
1. Environmental clean-ups in creek and open space areas associated with abandoned personal
property and trash.
2. Environmental clean-ups in City Parks and public spaces associated with abandoned personal
property and trash.
Public Safety
1. Maintain SLOPD bike patrol program as staffing allows.
2. Implement the new Community Service Officer program over the next fiscal year to ensure
effectiveness and improvements in quality-of-life surrounding homelessness issues in the
downtown.
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
15. Faith-based organizations
Budget Document Pg. 14 Page 726 of 829
Section A: Major City Goals – Housing and Homelessness
Strategic Approach
Strategy 3.1 – Housing Element Implementation
Implement the 6th Cycle Housing Element with focus on a missing middle housing program that enables
"house-scale" multi-family housing opportunities (duplex, tri-plex, bungalow court, etc.) in select
neighborhoods. Initiate updates to the Margarita Area and Airport Area Specific Plans to include more
housing options of all types where appropriate and consistent with the County Airport Land Use Plan.
Conduct a Study Session with the City Council to identify needs and opportunities across the housing
spectrum, and implement Below Market Rate Housing best practices.
Strategy 3.2 – Homelessness Response Strategic Plan (HRSP) Implementation
Implement the recently adopted HRSP with a focus on regional collaboration, communication, data
sharing, pilot programs and funding opportunities to prevent and address homelessness. Continue to
develop the Safe Housing Outreach and Education Program, including preparation of a Council Memo
on options for protecting renters. Monitor and update the HRSP to align with Countywide Plan to
Reduce Homelessness, other regional and state opportunities, and in advance of the next City financial
plan.
Strategy 3.3 – Environmental Clean-up in Creeks and Open Space
Environmental clean-ups in creeks, open space areas, City Parks and public spaces associated with
abandoned personal property and trash.
Strategy 3.4 – Public Safety
Maintain the SLOPD bike patrol program as staffing allows and implement the new Community Service
Officer program to ensure effectiveness and improvements in quality-of-life surrounding homelessness
issues in the downtown.
Budget Document Pg. 15 Page 727 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department (s)New Funding Completion Date3.1 Housing Element Implementation3.1a. Initiate a missing middle housing program that enables "house‐scale" multi‐family housing opportunities (duplex, tri‐plex, bungalow court, etc.) in neighborhoods where existing infrastructure (e.g. arterial and collector streets) can support additional infill and intensification and promote complete neighborhoods.Ongoing work effort CDD; AttorneyFY 25 Q43.1b. Initiate an update to the Margarita Area Specific Plan to include more housing options of all types (affordable, multi‐family, mixed‐use) on undeveloped land, and work with property owners on a plan for the completion of the Prado Road extension to Broad Street.New work effortCDD; PW TransportationFY 25 Q4 3.1c. Initiate an update to the Airport Area Specific Plan to allow mixed‐use residential development, where appropriate and consistent with the County Airport Land Use PlanNew work effort CDD; AttorneyFY 25 Q43.1d. Conduct a Study Session with the City Council to identify needs and opportunities across the housing spectrum, including various types of transitional and supportive housing options.New work effortCDDFY 24 Q33.1e. Implement Below Market Rate Housing best practices including leveraging affordable housing fund revenues, down payment assistance programs, streamlined processing of loan documents, and updated policies and procedures.New work effort CDD; AttorneyFY 24 Q4 3.2 Homelessness Response Strategic Plan Implementation3.2a. Work collaboratively with County and key stakeholders to coordinate regional encampment and street outreach, including an expanded hotel voucher program to ensure a bridge for temporary emergency shelterOngoing work effort CDD; AttorneyXFY 24 Q43.2b. Increase homelessness response communications, resource sharing, and education, including increased public use of Ask SLO appOngoing work effort CDD; AdminFY 24 Q43.2c. Expand implementation of digital encampment management tool internally and for potential countywide use Ongoing work effortCDD; PW; P&R; PD; FireFY 24 Q43.2d. Leverage additional funding from other partner agencies for Mobile Crisis Unit (MCU) program, and Community Action Team (CAT) and service expansion; develop sustainable safe parking programs; and pilot additional transitional shelter programs with regional partnersOngoing work effortCDD; PD; FireXFY 24 Q43.2e. Support County and regional partners in pursuing and implementing funding resources as appropriate given the City's role for services, and transitional and permanent supportive housing, including Encampment Resolution Funding and Project Homekey grantsOngoing work effort CDD; AdminFY 24 Q4Table 1c: Housing and Homelessness Major City Goal Work ProgramSection A: Major City Goals - Housing and HomelessnessBudget Document Pg. 16Page 728 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department (s)New Funding Completion DateTable 1c: Housing and Homelessness Major City Goal Work Program3.2f. Continue to develop the City's Safe Housing Outreach and Education Program, including preparation of a Council Memo on options for protecting renters, including homelessness prevention strategies. Ongoing work effort Attorney; CDD FY24 Q33.2g. Monitor and update the two‐year Homelessness Response Strategic Plan to align with Countywide Plan to Reduce Homelessness, other regional and state opportunities, and in advance of next City financial plan New work effort CDD FY 25 Q23.3 Environmental Clean‐up in Creeks and Open Space3.3a. Environmental clean‐ups in creek and open space areas associated with abandoned personal property and trash. (Funding approved on March 7, 2023)Ongoing work effort P&R x FY 25 Q43.3b. Environmental clean‐ups in City Parks and public spaces associated with abandoned personal property and trash. (Funding approved on March 7, 2023)Ongoing work effort PW x FY 25 Q43.4 Public Safety3.4 a. Maintain SLOPD bike patrol program as staffing allows Ongoing work effort PD FY 25 Q43.4b. Implement the new Community Service Officer program over the next fiscal year to ensure effectiveness and improvements in quality of life surrounding homelessness issues in the downtown (funding approved on March 7, 2023)New work effort PD x FY 24 Q1Section A: Major City Goals - Housing and HomelessnessBudget Document Pg. 17Page 729 of 829
Section A: Major City Goals – Climate Action, Open Space, and Sustainable Transportation
A-4. Climate Action, Open Space and Sustainable Transportation
Goal Statement: Proactively address the climate crisis and increase resiliency through the
implementation of the Climate Action Plan. Use resources to reduce greenhouse gas emissions and
reach carbon neutrality by 2035, with a focus on the preservation and enhancement of convenient and
equitable alternative and sustainable transportation, the preservation of open space, and equitable
access to parks and open space.
Expectations:
The 2019-21 and 2021-23 Climate Action Major City Goals included capital projects, program
implementation, and the development of strategic plans and citywide climate policy. With the adoption
of the Climate Adaptation and Safety Element of the General Plan (2023), the Climate Action Plan
update (2022), the Lead by Example Plan (2021), the Community Forest Plan (2023), the Parking Access
and Management Plan (2023), and the Active Transportation Plan (2021), as well as the completion of
the City Facility and Fleet Electrification Roadmaps (2023) and the Transit Innovation Study (2023), staff
can now move from planning to implementation.
This comes at a time of historic federal and state funding for local climate mitigation and adaptation
solutions. City staff and leadership will collaborate across departments and with the community to
leverage these historic funding opportunities to realize critical progress towards Council’s adopted
goals of reaching community-wide carbon neutrality by 2035 and municipal carbon neutrality by 2030,
while also building resilience to climate disruptions. Staff will also collaborate across Major City Goals
as housing, economic development, and diversity, equity, and inclusion are all core considerations in
the Climate Action Plan. Importantly, staff will continue to implement this Major City Goal with an
equity and justice lens, ensuring that the City’s climate and resilience solutions support quality -of-life
improvements in alignment with the Diversity, Equity, and Inclusion Major City Goal.
Stakeholders/Responsible Departments:
Administration is the lead department for the purposes of Major City Goal administration, monitoring,
and reporting. However, the Climate Action, Open Space & Sustainable Transportation (Climate Action)
Major City Goal will require the support and engagement from all City departments with special focus
provided by Public Works, Utilities, Parks and Recreation, Fire, and Community Development. The City
will also continue to engage current partners like the SLO Climate Coalition, Diversity Coalition of San
Luis Obispo, ECOSLO, Rotary de Tolosa, R.A.C.E. Matters SLO, Ecologistics, GALA, Bike SLO County, The
Land Conservancy of SLO County, Air Pollution Control District of San Luis Obispo, Central Coast
Community Energy, Integrated Waste Management Authority, Resource Conservation Districts,
California Conservation Corps, the San Luis Obispo County Community FireSafe Council and CalFire, and
other known and emerging partners.
Strategic Approach
Strategy 4.1 – Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans
The Climate Action Plan and the Lead by Example Plan provide critical path tasks to be completed in
the 2023-25 timeframe and include work related to municipal operations, clean energy systems, green
Budget Document Pg. 18 Page 730 of 829
Section A: Major City Goals – Climate Action, Open Space, and Sustainable Transportation
buildings, low carbon mobility, organic waste diversion, and natural solutions (due to Council’s direction
for special focus, natural solutions and low carbon mobility are called out in Strategy 4.2 and 4.3,
respectively). The City will use staff time and resources to pursue external funding and implement tasks
described in the plans and in the Major City Goal work program.
Strategy 4.2 – Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting
10,000 trees by 2035
The City continues to have outstanding opportunities to further its proud legacy of open space
protection within the San Luis Obispo Greenbelt. As the City pursues new conservation opportunities,
it will enhance existing City Open Space properties through planting trees, managing for increased
resilience to fires, droughts and floods, building new trails, and increasing equitable access to City open
spaces and natural reserves.
Strategy 4.3 - Preserve and Enhance Convenient and Equitable Alternative and Sustainable
Transportation Options
The City will continue to implement actions in support of General Plan mode share targets (e.g., 50
percent of trips occurring outside of a single occupancy vehicle). This will occur through continued
disciplined focus on the implementation of the highest-priority (“Tier 1”) Active Transportation
projects, innovations and improvements to transit service, and supportive programing. For those that
need to drive, the City will focus on enabling and deploying publicly accessible electric vehicle charging
infrastructure.
Strategy 4.4 –Increase Community Resiliency
The City continues to feel the disruptive effects of a rapidly changing climate. Building on decades of
risk mitigation and the recently adopted Climate Adaptation and Safety Element of the General Plan,
the City will implement projects and programs that build social infrastructure, reduce community risk,
and increase the community’s ability to recover from natural disasters, with a focus on flood, wildfire,
and heat impacts.
Strategy 4.5 – Continue to Build City and Community Capacity for Transformational Climate Action
Transformational climate action requires staff, resources, and networks of individuals and organizations
collaborating and innovating. The City will continue to support successful implementation and
innovation through internal and external collaborative partnerships such as the City’s Green Team,
support for regional governmental collaboration, and support for community-based organizations.
Budget Document Pg. 19 Page 731 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion Date4.1 Implement the Climate Action Plan and Lead by Example 2023‐25 Work Plans4.1a. Continue to install electric vehicle chargers and replace fleet vehicles as needed with all‐electric alternatives as called for by CAP Lead by Example task 1.1.A .Ongoing work effort Public Works X Ongoing4.1 b. Continue to electrify the bus fleet as called for by CAP Lead by Example task 1.1.A. Ongoing work effort Public Works X Ongoing4.1c. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool as called for by CAP Lead by Example task 1.1.A.Ongoing work effortPublic Works / AdministrationQ2 20254.1d. Leverage the City's Energy Efficiency and Conservation Block Grant to initiate design work for replacing fossil fuel water heating at the SLO Swim Center as called for by CAP Lead by Example task 1.1.A.New work effortPublic Works / AdministrationX4.1e. Apply the "Sustainable SLO" mark to City infrastructure and assets and conduct a general awareness outreach program as funding and staff resources allow, as called for by CAP Lead by Example task 1.1.B.Ongoing work effort Administration Ongoing4.1f. Provide 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.AOngoing work effort Administration Ongoing4.1g. Pursue funding, and if feasible, create the "Green and Healthy Buildings” service to educate the community and connect building owners with resources, federal funding, incentives, financing, contractors, and streamlined permitting as called for by CAP Green Buildings Task 2.1.B, 2.1.C, and 2.1.D, and CASE Program HE‐4.7. New work effort Aministration / CDD Ongoing4.1h. Conduct a study session, and pending Council direction, develop an equitable framework for cost effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task 2.1.E. New work effort Administration / CDDQ1 2024; Ongoing4.1i. Continue SB 1383 implementation by developing an inspection and enforcement program and complying with procurement requirements for organic waste and paper as called for in CAP Circular Economy task 1.1.A and 1.1.B.New work effortUtilitiesOngoing4.1j. Continue to support the IWMA on facilitating the City's edible food recovery programs as called for in CAP Circular Economy task 1.1.C, 1.2.A, and 1.3.A. Ongoing work effortUtilitiesOngoing4.2Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 20354.2a. Actively implement opportunities to purchase open space lands and permanent land conservation agreements in furtherance of the City's Greenbelt Protection Program as called for by CAP Natural Solutions task 1.1.A.Ongoing work effort AdministrationOngoing4.2b. Complete installation of adopted trail systems at the Irish Hills Natural Reserve and at Miossi Open Space.Ongoing work effort Parks and RecreationOngoing4.2c. Identify and implement trail alignment revisions, if feasible, and other solutions to reduce erosion and wet weather closures and address trail user safety and enjoyment at Reservoir Canyon Natural Reserve.Ongoing work effort Parks and RecreationOngoing4.2d. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp, and ongoing public information and programming, with emphasis on equity and equitable access.Ongoing work effortParks and Recreation / AdministrationOngoingTable 1d. Climate Action, Open Space & Sustainable Transportation Major City Goal Work ProgramsSection A: Major City Goals - Climate Action, Open Space & Sustainable TransportationBudget Document Pg. 20Page 732 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable 1d. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs4.2e. Continue implementation by Ranger Service staff of all Open Space maintenance activities 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 PlanOngoing work effort Parks and Recreation Ongoing4.2f. Continue 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.Ongoing work effort Parks and Recreation Ongoing4.2g. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan (if adopted in May 2023).Ongoing work effort Parks and RecreationOngoing4.2h. Continue to work with community groups on tree planting in creeks and open space areas toward the goal of 10,000 trees by the year 2035 as called for in CAP Natural Solutions task 2.1.ANew work effortAdministration / Parks and RecreationXOngoing4.2i. Continue to expand climate‐informed maintenance practices in the Greenbelt through external funding and partnerships, and conduct ongoing monitoring on carbon sequestration results and other co‐benefits for existing and potential future projects, as called for in CAP Natural Solutions task 2.1.B.Ongoing work effort AdministrationXOngoing4.2j. Continue to implement rehabilitation efforts throughout the City's open space network where storm damage has occurred to trails, access roads, and other open space infrastructure. New work effortParks and Recreation / AdministrationOngoing4.3Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options4.3a. Active Transportation Plan (ATP) Tier 1 Network ‐ Higuera Complete Street Project: Complete final design and construction of active transportation and safety improvements along Higuera Street corridor from Marsh St. to Los Osos Valley Rd.Ongoing work effortPublic WorksXFY25 Q34.3b. Active Transportation Plan (ATP) Tier 1 Network ‐ South/King Crossing: Complete design and construction of a new protected bicycle/pedestrian crossing at the intersection of South St. & King St., improving access to Meadow Park, Hawthorne Elementary, and existing active transportation routes.New work effortPublic WorksXFY25 Q34.3c. Active Transportation Plan (ATP) Tier 1 Network ‐ Foothill Complete Street Project: Continue design of active transportation and safety improvements along the Foothill Blvd. corridor between the western city limits and California Blvd., with goal to have shovel‐ready project for construction in FY2025‐27.New work effortPublic WorksXFY25 Q14.3d. Active Transportation Plan (ATP) Tier 1 Network ‐ California/Taft Roundabout: Complete final design and right‐of‐way acquisition for new roundabout at the California Blvd. & Taft St. intersection, with goal to have shovel‐ready project for construction in FY2025‐27.Ongoing work effortPublic WorksXFY25 Q44.3e. Active Transportation Plan (ATP) Tier 1 Network ‐ Paving Project Complete Street Elements: Implement complete street and safety improvements as part of 2023 and 2024 summer paving projects as guided by the Active Transportation Plan and Traffic Safety/Vision Zero reports.Ongoing work effortPublic WorksXOngoingSection A: Major City Goals - Climate Action, Open Space & Sustainable TransportationBudget Document Pg. 21Page 733 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable 1d. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs4.3f. Active Transportation Plan (ATP) Tier 1 Network ‐ Railroad Safety Trail (Orcutt to Tiburon) Connection: Initiate design and environmental review for a project that will complete the gap in the Railroad Safety Trail in the Orcutt Area between Tiburon Dr. and Orcutt Rd., including replacement of the narrow culvert on Bullock Lane and pedestrian/bicycle safety improvements at the Orcutt Road/Union Pacific Railroad Crossing.Ongoing work effort Public Works X FY25 Q44.3g. Vision Zero Implementation ‐ Update annual Traffic Safety Report to evolve into a 5‐Year Vision Zero Action Plan and continue ongoing implementation of traffic safety projects and programs, focusing efforts on the City's high crash/injury network.Ongoing work effortPublic WorksOngoing4.3h. Transit Innovation Study Implementation: Begin planning implementation of strategies recommended in Final Transit Innovation Study, including incorporation of near‐term strategies as part of planned SLO Transit/RTA Short Range Transit Plan update, as called for in CAP Connected Community Task 4.2.A and in the APMP Strategies 1.C.New work effortPublic Works / AdministrationXOngoing4.3i. Reassess the viability of launching a citywide bikeshare system, with ongoing coordination with Cal Poly as called for in CAP Connected Communities Task 2.2.A and the APMP strategy 1.B.1. Solicit potential bikeshare system operators if staffing resources allow and this can be done without diverting resources from delivering priority active transportation infrastructure projects.New work effortAdministrationFY25 Q44.3j. Public EV Chargers ‐ Enable public EV charger deployment on City property, support EV charger installation on private property, and deploy EV chargers in low‐income areas of the City as called for in CAP Connected Community Tasks 6.1.A, 6.1.B, and 6.1.D. Ongoing work effort AdministrationOngoing4.4 Increase Community Resilience4.4a. In coordination with Zone 9, convene a working group to assess the current creek flow monitoring system and provide recommendations for enhancements, as called for in CASE program FL‐3.13.New work effortCommunity Development / Administration / FireFY25 Q44.4b. Conduct a study session to consider options for funding stormwater and / or creek maintenance and flood preparedness in support of CASE programs 3.9, 3.10, 3.11, 3.12, 3.13, and 3.14.New work effortUtilities / Public Works / AdministrationFY25 Q44.4d. Evaluate opportunities to integrate climate considerations in the City's Engineering Standards and Specifications as called for in CASE program MH‐1.6.New work effortPublic WorksOngoing4.4e. Provide post‐disaster recovery resources and emergency preparedness education to vulnerable community members as called for in CASE program MH‐1.10.New work effortFire / Community DevelopmentOngoing4.4f. Initiate the development of Wildland‐Urban‐Interface Defensible Space and Home Hardening Program as called for in CASE program FI‐5.15.Ongoing work effortFire2024 Q44.4g. Monitor funding sources and if feasible pursue a Climate Resilience Hub planning grant with community partners, as called for in CASE program MH‐1.8.New work effortAdministrationOngoingSection A: Major City Goals - Climate Action, Open Space & Sustainable TransportationBudget Document Pg. 22Page 734 of 829
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable 1d. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs4.4h. In partnership with Zone 9, seek funding to initiate the Waterway Management Plan update toincorporate climate‐informed flood risk as called for in CASE program FL‐3.7. Initial work in this Financial Plan period is envisioned to include identifying and securing funding, developing a project scope, and drafting a request for proposals. New work effort Administration FY25 Q44.4 i. Develop an Urban Creeks Vegetation Management Plan as called for in CASE program FL‐3.10. Ongoing work effort Fire / Administration4.4j. Incorporate Traditional Ecological Knowledge into open space management decisions as called for in CASE program OP‐7.2.New work effortAdministrationOngoing4.4 k. Implement the Mid‐Higuera Bypass Project.Ongoing work effortPublic Works / AdministrationXOngoing4.4 l. Implement the Laguna Lake Dredging and Sediment Management Project.Ongoing work effortPublic Works / AdministrationXOngoing4.4 m. Implement Silt Removal Projects from Priority Creek Locations.Ongoing work effortAdministration / Public WorksOngoing4.4 n Implement existing Community Wildfire Protection Plan and initiate focused update in 2024. Ongoing work effortFireOngoing4.5 Continue to Build City and Community Capacity for Transformational Climate Action4.5a. Participate in the Cal Poly Climate Corps Fellowship program to build staff capacity as called for in the CAP. New work effortAdministration / CDD / Public Works / UtilitiesOngoing4.5b. Manage the Green Team to Support Lead by Example, Climate Adaptation and Safety Element of General Plan, and Climate Action Plan implementation, as called for in CASE program MH‐1.11 and OP‐7.9.Ongoing work effort AdministrationOngoing4.5c. Continue to support and empower community collaboration for climate action, including support for the Climate Coalition and the San Luis Obispo Climate Justice Collaborative, as called for in CAP task 3.1.A.Ongoing work effort AdministrationOngoing4.5d. Support regional efforts to develop the workforce required to implement the Climate Action Plan as called for in CAP task 2.2.A.New work effortAdministrationOngoing4.5e. Initiate update to the Lead by Example plan to inform the 2025‐27 Financial Plan as called for by CAP Lead by Example task 1.1.A and Lead by Example Plan Administrative Action 1Ongoing work effort AdministrationOngoing4.5f. Conduct GHG Emissions Inventory and Biennial CAP and Lead by Example Progress Reports as called for in CAP Administrative Action 2 and Lead by Example Plan Administrative Action 2.Ongoing work effort Administration2024 Q34.5g. Continue to integrate climate action and resilience into the 2025‐27 Financial Plan development process consistent with Budget Policy A.6 and as called for by CAP Lead by Example task 1.1. and CASE Program MH‐1.5.Ongoing work effort AdministrationOngoing4.5h. As authorized by City Council (December 13, 2022) and as called for in CAP Administrative Action 6, pursue grant and other external funding sources opportunistically and strategically.Ongoing work effort AdministrationOngoing4.5i. Complete steps and present recommendations and options to maximize the reuse of wastewater per the "Road Map" presented to the City Council.Ongoing work effortUtilitiesOngoingSection A: Major City Goals - Climate Action, Open Space & Sustainable TransportationBudget Document Pg. 23Page 735 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
Section B: General Fund
B-1. Current Services and Programs
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 or core services for
every budgetary analysis and the point of departure for development of the two-year Financial Plan.
However, those services could change based on the community engagement, changes in business needs,
new technologies and goal-setting process as the evolving 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.
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:
Figure 1: Core Services
Budget Document Pg. 24 Page 736 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
Operating Expenditures by Type
The proposed base budget2 for FY 2023-24 is about 3.7% higher than the current year budget. The increase
is due to:
1.CPI increases on materials and supplies.
2.Utility rate increases.
3.Increases in the cost of contractual services.
4.Employee step increases and approved Cost of Living Adjustments (COLAs)
5.Approved parameters for upcoming bargaining unit negotiations
Table 1 - General Fund Base Budget (by expenditure category)
Operating Expenditures by Department and Program
The table on the following pages includes the 2023-25 base budget for each operating program by
department.
Operating Expenditure Type 2022-23 Budget 2023-24 Proposed
Budget
2024-25 Proposed
Budget
Salaries and Benefits 66,250,502$ 68,675,333$ 72,419,256$
Contract Services 7,816,094$ 7,014,194$ 6,940,060$
Other Operating Expenditures 6,094,224$ 7,222,985$ 7,211,062$
Utilities 2,963,728$ 3,302,135$ 3,436,385$
General Fund Total 83,124,548$ 86,214,647$ 90,006,763$
2023-25 Financial Plan
2 The base budget is the budget required to provide existing services minus any one-time allocation from the
2021-23 Financial Plan. New budget recommendations for the 2023-25 Financial Plan are not included in these
tables but can be found in Section B3 and are included in the General Fund Long Term forecast on page 34 (lines
35 & 36).
Budget Document Pg. 25
Page 737 of 829
General Fund Operating Expenditures by
Program Footnote2022‐23 Budget 2023‐24 Proposed
Budget
2024‐25 Proposed
Budget
Internal Services 18,673,939$ 17,299,576$ 19,057,838$
1000 ‐ Administration 10,453,389$10,161,940$10,419,491$
1001 ‐ Administration 1,374,415$ 1,419,346$ 1,504,432$
1002 ‐ City Council 221,756$244,185$246,440$
1003 ‐ Cultural Activities 357,963$365,161$365,161$
1004 ‐ Economic Dev 1 906,219$532,984$541,514$
1005 ‐ Natural Resource Protection 814,543$874,108$899,032$
1007 ‐ Community Promotion 405,609$411,735$413,234$
1010 ‐ Office of DEI 1 888,313$595,806$606,539$
1021 ‐ City Clerk 704,704$757,787$777,137$
1101 ‐ Network Services 3,502,642$ 3,461,523$ 3,512,056$
1103 ‐ Information Services 1,277,224$ 1,499,305$ 1,553,946$
1500 ‐ City Attorney 1,305,660$ 1,425,044$ 1,497,103$
1501 ‐ City Attorney 1,305,660$ 1,425,044$ 1,497,103$
2000 ‐ Finance 5,229,942$ 3,841,302$ 5,177,292$
2001 ‐ Financial Admin 2 557,524$291,632$285,197$
2002 ‐ Budgets 173,883$222,653$253,217$
2003 ‐ Revenue Mgmt 467,947$550,776$493,195$
2004 ‐ Purchasing 218,874$258,560$268,936$
2005 ‐ Accounting 898,785$1,097,098$ 1,142,608$
2006 ‐ Finance Support Services 319,700$319,700$319,700$
2007 ‐ Finance NonDepart 3 2,593,228$ 1,100,883$ 2,414,439$
3000 ‐ Human Resources 1,684,948$ 1,871,290$ 1,963,952$
3001 ‐ Human Resources Admin 1,667,537$ 1,852,932$ 1,945,133$
3003 ‐ Wellness 17,411$18,358$18,819$
Community Services 29,069,233$ 31,759,326$ 32,991,019$
1009 ‐ Community Services Group Admin 2 573,066$ 740,534$ 778,730$
1009 ‐ Community Services Group 573,066$740,534$778,730$
4000 ‐ Community Development 6,783,059$ 7,580,900$ 7,995,578$
4001 ‐ Community Dev Admin 968,991$954,447$991,111$
4002 ‐ Commissions and Committees 34,948$37,240$37,240$
4003 ‐ Planning 1,855,172$ 1,738,382$ 1,805,024$
4004 ‐ Engineering 839,745$870,784$1,029,630$
4006 ‐ Building and Safety 2,133,870$ 2,981,371$ 3,106,867$
4008 ‐ Housing Policy and Programs 950,332$998,675$1,025,706$
5000 ‐ Public Works 16,144,599$17,541,996$18,121,921$
5001 ‐ Public Works Admin 1,089,021$ 1,454,917$ 1,527,733$
5002 ‐ Parks Maint 3,478,283$ 4,026,238$ 4,218,912$
5003 ‐ Swim Center Maint 595,198$673,110$688,515$
5004 ‐ Urban Forest Services 4 455,180$181,182$158,567$
5005 ‐ Facilities Maintenance 1,375,065$ 1,433,544$ 1,445,820$
5006 ‐ Streets Maint 4 2,423,871$ 2,590,115$ 2,672,078$
5007 ‐ Traffic Signals and Lighting 535,973$596,347$602,390$
5008 ‐ Fleet 1,395,387$ 1,453,372$ 1,485,298$
5009 ‐ CIP Project Eng 2,717,592$ 2,887,864$ 3,002,118$
5010 ‐ Transportation Plan and Eng 995,326$1,078,014$ 1,121,828$
5301 ‐ Stormwater and Flood Control 1,083,704$ 1,167,293$ 1,198,664$
2023‐25 Financial Plan
Section B: General Fund Overview - 2023-25 Financial Plan
Table B1
Budget Document Pg. 26 Page 738 of 829
General Fund Operating Expenditures by
Program Footnote2022‐23 Budget 2023‐24 Proposed
Budget
2024‐25 Proposed
Budget
2023‐25 Financial Plan
6000 ‐ Utilities 317,456$ 341,459$ 349,657$
6107 ‐ Solid Waste Recycling 317,456$341,459$349,657$
7000 ‐ Parks and Recreation 5,251,052$ 5,554,438$ 5,745,133$
7001 ‐ Recreation Admin 770,190$829,238$868,772$
7002 ‐ Recreation Facilities 325,907$355,639$363,272$
7003 ‐ Youth Services 1,288,694$ 1,393,794$ 1,444,226$
7004 ‐ Community Services 657,382$670,066$701,772$
7005 ‐ Ranger Service 826,321$883,907$918,134$
7006 ‐ Aquatics 633,304$605,083$613,667$
7007 ‐ Golf Course 738,756$806,211$824,790$
7008 ‐ Jack House 10,500$10,500$10,500$
Public Safety 35,381,375$ 37,155,745$ 37,957,905$
8000 ‐ Police 20,866,264$21,904,486$22,425,443$
8001 ‐ Police Admin 2,103,633$ 2,250,494$ 2,307,587$
8002 ‐ Patrol 5 10,684,397$ 11,914,934$ 12,245,831$
8003 ‐ Investigations 5 3,521,262$ 3,046,865$ 3,094,337$
8004 ‐ Police Support Services 3,198,032$ 3,476,083$ 3,544,157$
8005 ‐ Neighborhood Services 282,674$302,867$309,929$
8006 ‐ Traffic Safety 1,076,266$ 913,242$923,603$
8500 ‐ Fire 14,515,112$15,251,259$15,532,462$
8501 ‐ Fire Admin 1,057,173$ 1,162,070$ 1,209,124$
8502 ‐ Emergency Response 11,419,286$ 11,826,682$ 12,084,850$
8503 ‐ Hazard Prevention 915,290$1,024,674$ 1,053,586$
8504 ‐ Training Services 121,150$113,448$113,448$
8505 ‐ Recruit Academy 6 ‐$ 75,600$‐$
8506 ‐ Fire Apparatus Services 466,131$489,400$496,515$
8507 ‐ Fire Station Facility Support 41,675$43,525$43,525$
8510 ‐ Mobile Crisis Unit 314,190$320,417$326,523$
8599 ‐ Emergency Management 180,217$195,444$204,891$
General Fund Total 83,124,548$ 86,214,647$ 90,006,763$
Footnotes:
6 ‐ The Recruit Academy is typically held every three years.
1 ‐ Reduction in FY24 due to the removal of one‐time budget allocations from the 2023‐25 Financial Plan.
2 ‐ Reduction in FY24 because of the reclassfication of an Admin Assistant to a Payroll Analyst (budgeted in cost center 2005) and the
transfer of the Infrastructure Financing Analyst to the Community Services Group (cost center 1009)
3 ‐ Budget includes the staffing contingencies which vary significantly from year to year.
4 ‐ A position from the Urban Forest Cost Center was moved to Streets Maintenance. Additionally, the City now contracts out a
significant portion of its tree maintenance work. Some of this budget is located within the Capital budget.
5 ‐ Several positions were moved from Investigations to Patrol.
Section B: General Fund Overview - 2023-25 Financial Plan
Table B1
Budget Document Pg. 27 Page 739 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
B-2. 2023 Employee Engagement Survey
A Majority “New” Workforce, and the 2023-25 Financial Plan
In January 2023, the City partnered with the Centre for Organization Effectiveness to conduct an employee
engagement survey to gain insights on how to best support employees in delivering core services and
achieving the Major City Goals and to ensure a positive and engaged workforce. Since July 2021,
approximately 54% of the City’s regular workforce were hired or promoted into their current position.
Further, the median tenure with the City, across all departments, is just under five years. For employees
to effectively fulfill the City’s mission of People Serving People, and given the shift in the workforce and
based on the Employee Engagement Survey results, the main areas of focus for employees over the next
two years will be:
1.Training and Development. Support and prioritize employee development and growth through
investing in resources to train, develop, and onboard new and transitioning employees.
2.Prioritization of Work. Support employees in managing their workloads by reviewing and
prioritizing work efforts, goals, and balancing trade-offs for new workload.
3.Meeting Effectiveness. Evaluate and adjust internal meetings to create more effective meeting
practices.
4.Communication and Collaboration. Promote cross-department communication and
collaboration amongst employees.
5.Oracle Training and Communication. Evaluate and enhance the training and usability of Oracle
Cloud, the City’s Enterprise Resource Planning / Human Capital Management software.
B-3. Significant Operating Budget Changes (SOBCs)
Given the tight fiscal forecast and unanticipated storm recovery costs, departments were asked to be very
critical of new operating budget requests, specifically ongoing budget requests. Over $4 million of ongoing
budget requests were initially submitted. The Financial Plan Steering Committee narrowed the requests
down to only mission critical core services and/or health and safety related items that could be funded
within available resources.
Budget Recommendations
Budget recommendations are categorized into the following six sub-sections with descriptions of the
recommended funding sources included in each section. A detailed SOBC list with recommendation
descriptions can be found in Appendix A on page 84 (the SOBC ID number listed on the lefthand side of
each table corresponds with the descriptions included in Appendix A). The funding of one-time SOBCs
required the use of the $1.3 million that the CalPERS payments that the Council deferred in February 2023.
Table 2 - Summary of General Fund Budget Recommendations
SOBC Category 2023-24 2024-25 2023-25 Total
a.General Fund Ongoing 478,907$ 489,444$ 968,351$
b.General Fund One-time 739,217$ 731,917$ 1,471,134$
c.Budget recommendations using economic development funding 396,000$ 396,000$ 792,000$
d.Budget recommendations from other funding sources 359,550$ 239,950$ -$
e.Position reclassifications -$ -$
f.Other budget changes with no fiscal impact -$ -$
Total 1,973,674$ 1,857,311$ 3,231,485$
Budget Document Pg. 28 Page 740 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
a. General Fund Ongoing Budget Recommendations
These budget requests are recommended to be funded on an ongoing basis using the projected revenues
exceeding expenditures based on the updated General Fund fiscal forecast. If approved, they will become
part of the base budget.
Table 3 - General Fund Ongoing Budget Recommendations
b. One-time General Fund Budget Recommendations
These requests are recommended to be funded on a one-time basis using the General Fund unassigned
fund balance. Based on audited financial statements from FY 2021-22, there was about $1.35 million in
unassigned fund balance and additional revenue over expenditures is expected at the end of FY 2022-23.
At the 2022-23 Mid-year Review, staff had proposed to use part of this balance ($1.3 million) to make an
additional discretionary payment to CalPERS; however, given the recent storms and fiscal uncertainties,
Council recommended to not make that payment. While staff feel it is prudent to make additional
payments when possible, if Council would like to move forward with any of the following new budget
items, this is the only available funding source that will not require a tradeoff with current operations. If
Council directed staff to keep the $1.3 million reserved for an additional CalPERS payment (at a later date)
and add any of the following items into the budget, staff would return with operating budget tradeoffs at
the preliminary budget meeting (June 6, 2023).
ID General Fund Ongoing Budget Recommendations Department 2023-24 2024-25 2023-25 Total
1 Annual MS4 permit fee - SWRCB Public Works 18,000$ 18,500$ 36,500$
2 City Hall Temporary Restroom Public Works 12,000$ 12,600$ 24,600$
3 Critical Police Software Police 26,000$ 26,000$ 52,000$
4 New Office Space Janitorial & Utility Costs Public Works 89,125$ 89,875$ 179,000$
5 Increased Cost for Animal Services Operations Police 50,000$ 50,000$ 100,000$
6 New Regular Position - Urban Forester (1 FTE)Public Works 96,690$ 100,065$ 196,755$
7 Preventative Mental Health Services for Public Safety HR 35,000$ 37,000$ 72,000$
8 Reclassification - Communications Manager Police 105,567$ 105,630$ 211,197$
9 Volunteer Program Budget (to support new position)Parks and Rec 26,525$ 24,775$ 51,300$
10 Youth Programs Scholarship Funds (MCG 2.8d)Parks and Rec 20,000$ 25,000$ 45,000$
Grand Total 478,907$ 489,444$ 968,351$
Budget Document Pg. 29 Page 741 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
Table 4 - General Fund One-time Budget Recommendations
c. Budget Recommendations Using Economic Development Balance
Per Resolution 11203 and the Council Agenda Item #19 from December 14th, 2020, $3.4 million of
undesignated fiscal year 2018‐19 General Fund Balance was allocated towards economic development
efforts and homeless services. It continues to seek opportunities to optimize the use of this assigned fund
balance which has a balance of about $1.4 million. Staff recommend utilizing some of the remaining
balance to fund 2023-25 budget requests directly related to Economic Development, thus freeing up
unassigned general fund balance.
Table 5 - One-time Budget Recommendations (Economic Development)
d. Budget Recommendations Funded Through Other Sources
Given the limited availability of General Fund dollars, staff recommend using the following funding
sources for budget requests that have a direct nexus with the purpose of the proposed fund. If approved,
the budget will be transferred into the General Fund operating budget.
Table 6 - Other Budget Recommendations
ID General Fund One-time Budget Recommendations Department 2023-24 2024-25 2023-25 Total
11 10 Tall Tree Planting Implementation* (MCG 4.2g)Admin 50,000$ 50,000$ 100,000$
12 Contract Half-Time HR Specialist - Onboarding HR 46,895$ 48,583$ 95,478$
13 Contract Mowing Services at Parks Public Works 100,000$ 100,000$ 200,000$
14 Historic Resources Inventory* (MCG 1.4g)CDD 100,000$ 150,000$ 250,000$
15 Hotel Voucher Program - CAPSLO* (MCG 3.2a)CDD 25,000$ -$ 25,000$
16 La Loma Adobe Rehabilitation (Phase I)* (MCG 1.4f)Admin 100,000$ -$ 100,000$
17 Margarita Area Specific Plan Update*CDD 100,000$ 200,000$ 300,000$
18 Exploration of a Potential Stormwater Utility*Public Works 10,000$ 10,000$ 20,000$
19 Public Safety Equipment Replacement Fire & PD 171,322$ 167,334$ 338,656$
20 Safe Parking (Location TBD)* (MCG 3.2d)CDD 30,000$ -$ 30,000$
21 SLO Onboarding Assistance Resources Program (SOAR)HR 6,000$ 6,000$ 12,000$
Grand Total 739,217$ 731,917$ 1,471,134$
* Directly related to Major City Goal work program and/or Council direction
ID Economic Development: One-time Budget
Recommendations Department 2023-24 2024-25 2023-25 Total
22 EDD/Beacon Data* (MCG 1.2e)Admin 11,000$ 11,000$ 22,000$
23 EDSP Implementation* (MCG 1.1a)Admin 75,000$ 75,000$ 150,000$
24 Community Activations* (MCG 1.4e)Admin 75,000$ 75,000$ 150,000$
25 Shop Local Business Promotion * (MCG 1.2a)Admin 85,000$ 85,000$ 170,000$
26 Buy Local and Eat Local Bonus* (MCG 1.2a)Admin 125,000$ 125,000$ 250,000$
27 Childcare Grants* (MCG 2.8d)Admin 25,000$ 25,000$ 50,000$
Grand Total 396,000$ 396,000$ 792,000$
* Directly related to Major City Goal work program and/or Council direction
ID Other One-time Budget Recommendations Funding Source 2023-24 2024-25 2023-25 Total
28 New Contract Position: Public Art Coordinator Public Art Fund Balance 90,550$ 89,950$ 180,500$
29 Solid Waste Rate Manual Updates through IWMA AB 939 Carryover*15,000$ -$ 15,000$
30 Below Market Rate Housing Administrator
(Consultant Services)
Affordable Housing
Fund 150,000$ 150,000$ 300,000$
31 IT Project Management Services (EnerGov)Available IT Surcharge
Revenue (IT Fund)104,000$ -$ 104,000$
Grand Total 359,550$ 239,950$ 599,500$
Budget Document Pg. 30 Page 742 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
* Because of staff vacancies in the Solid Waste program, there will be unused AB 939 revenue at 2022-23 year end
that can be restricted for use in FY 2023-24.
e. Position Reclassifications
Reclassifications can happen throughout the fiscal year with City Manager approval; however, they are
recommended to be done as part of the budget cycle to show the ongoing fiscal impact and to evaluate
the long-term fiscal impacts with other priorities. The following reclassifications either do not have a fiscal
impact because of the way departments were reorganized or have a minimal fiscal impact that can be
absorbed within the departments’ base budgets.
Table 7 - Position Reclassifications
ID Reclassifications Department
32 Administrative Assistant III Admin and IT
33 Administrative Assistant III (Police) Police
34 Economic Development Analyst Admin and IT
35 Economic Development and Tourism Manager Admin and IT
36 GIS Specialist Admin and IT
37 Tourism and Community Promotions Manager Admin and IT
f. Other Budget Changes with No Fiscal Impact
Changes to Development Services Designation and Building Permit Plan Check Administration: Staff
recommend combining the (1) Building Permit Plan Check and (2) Development Services Designation
Policies based on several years of experience operating with both policies in place. CDD is recommending
that its base budget and Development Services Revenue Forecast include the full cost of plan check
services that are contracted out to consultants (instead of adjusting budget throughout the year). This will
enable the Building and Safety Division to better manage resources when assigning plan check work to
staff and consultants. The Development Services Designation Policy (2) will be eliminated, but if workload
spikes, the Permit Plan Check Policy (1) would enable the Finance Director to move current revenue (if
above the forecast) to CDD's operating expenditure budget to cover associated costs. Consultants are
under contract for plan check services at 65% of the fee collected by the City from applicants, ensuring
100% cost recovery for the City.
Budget Document Pg. 31 Page 743 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
B-4. General Fund Financial Outlook
The long-term forecast is an essential planning tool for the City and its ongoing service delivery. Overall,
the General fund is in a good financial condition and stays balanced throughout the five-year forecast at
current service levels. Revenue assumptions are conservatively optimistic, and the forecast only assumes
a cooling of the current economic activity (not a recession).
Assumptions
1. Tax revenue forecast assumptions are largely unchanged from the forecast presented with the 2022-
23 Mid-year Report.
2. Fee revenue budgets are updated based on forecasted activity levels3.
3. The Capital Budget increased 19% in FY 2023-24 to account for construction cost index (CCI) increases,
followed by 2% annual increases thereafter.
4. There is a $5.2 million one-time allocation towards the Infrastructure Investment Fund (IIF) to repay
use of funds in the current year to acquire property to support the public safety center with the goal
to minimize costs. The sources to take this action are a combination of unassigned debt service fund
balance and projected revenues over expenditures in the 2022-2023 fiscal year.
Table 8 - Reimbursement to IIF for Purchase of Walnut St Building
General Fund: The source of this repayment is subject to projected one-time
revenues over expenditures in the current year (FY 2022-23).
$3 million
Debt Service Unassigned Fund Balance4 $2.2 million
5. The City will use its operating reserve as needed in FY 2022-23 and FY 2023-24 to offset storm recovery
costs but will replenish it back to the 20% reserve level, consistent with policy requirements, in FY
2024-25 (or as soon as reimbursement is collected). If full eligible reimbursement costs are not
achieved (93.5%), then reductions will be made in future CIP.
6. The $1.3 million additional discretionary payment towards CalPERS5 recommended by staff at the
2022-23 Mid-year Review was subtracted. The forecast assumes this amount will be used as a tradeoff
for one-time efforts in 2023-25 recommended in Section B-3 b.
7. The forecasted contribution to the 115 Trust Fund was reduced from $3 million to $2 million. This is
consistent with the initial Fiscal Health Response Plan goals; however, staff had increased the forecast
to a more persistent amount of $3 million with the 2022-23 Supplemental Budget.
3 The City will embark on a study in early June to evaluate its current fee structure. Per City policy, a comprehensive
analysis of City costs and fees should be done at least every five years. The last fee study was done in 2017. The
results of the fee study could lead to revenue forecast changes over the 2023-25 Financial Plan.
4 Based on the FY 2021-22 audited financial statements, there is a $2.2 million unassigned balance in the Debt
Service Fund due to an over allocation in a past financial plan. Because the debt service fund has a direct nexus
with the funding of capital, staff recommend moving the balance to the Infrastructure Investment Fund.
5 This was the amount available from the 2021-22 unassigned year-end fund balance. Staff had initially
recommended that it be added to the planned $ 2 million additional downpayment to help negate the impact of
CalPERs’ 6.8% investment losses in 2021. Council took action on February 7, 2023 to not make this payment.
Budget Document Pg. 32 Page 744 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
Strategic Direction and Storm Recovery in the 2023-25 Financial Plan
The City has experienced multiple storms over the last three months and while initial damage assessments
have been done, the number and scope of the repairs continues to evolve as more storms occur and as
staff is able to access damaged areas to assess the extent of the damage. The overarching strategy for
the 2023-25 Financial Plan is to prioritize storm recovery and prepare for future storm events. Given the
size of damages, the City Manager activated the Fiscal Health Contingency Plan in January 2023. The Fiscal
Health Contingency Plan is a framework in responding to adverse fiscal circumstances like natural
disasters and is intended to help the General Fund stay in good financial condition by limiting
expenditures.
The storms have resulted in two separate emergency declarations at the Federal, State and local level. As
a result, staff is working to clearly identify and distinguish costs attributable to the January storm and
March storm events. As of the writing of this report staff estimate there will be at least $2 to $3 million
of operating costs associated with staff overtime, supplies, and contracted services related to the January
storms only. Operating costs related to the March storms are still being identified. On the Capital side,
known non-emergency projects are identified in CIP Section E and are expected to begin in FY 2023-24.
Several emergency repair projects are already underway and will be paid for using the General Fund
reserve as authorized by R-11391. All FY 2022-23 costs will be temporarily paid for using the reserve. The
reserve will be replenished as FEMA or California Disaster Assistance Act (CDAA) reimbursement revenue
is received or by using any available revenues over expenditures at year end.
For planning purposes, there is an estimated $9 million in storm-related costs included in the forecast.
Assuming the City receives 75% (maximum) FEMA reimbursement and 18.75% (maximum) State
reimbursement, the “out-of-pocket” cost to the General Fund will be around 6.25% or $630,000 to total
costs. To help offset the impact to the reserve, there is allocation of Local Revenue Measure (LRM) funding
for storm related projects in 2023-25. The best-case scenario is that the City will receive substantial
reimbursement and have the ability to reallocate the LRM budget towards future projects. Should
maximum reimbursement not be achievable, use of the LRM budget provides a safeguard to the City’s
budget or future year CIP budgets will be reduced to restore emergency reserves.
Budget Document Pg. 33 Page 745 of 829
Section B: General Fund Overview – 2023-25 Financial Plan
Table B4: General Fund Five-Year
Forecast (In Thousands)
(A)
Budget
2022-23
(B)
Projected
2023-24
(C)
Projected
2024-25
(D)
Projected
2025-26
(E)
Projected
2026-27
(F)
Projected
2027-28
Tax & Franchise Revenue
1 Sales & Use Tax 52,163 53,340 54,573 55,988 57,465 59,127
2 Sales Tax General 21,524 22,579 23,166 23,768 24,410 25,118
3 Public Safety (Prop 172)497 499 509 519 530 540
4 Measure G20 30,142 30,262 30,898 31,701 32,525 33,468
5 Property Tax 21,473 22,000 22,652 23,332 24,032 24,752
6 Transient Occupancy Tax 10,704 10,704 10,918 11,136 11,359 11,586
7 Utility Users Tax 5,544 5,710 5,882 6,058 6,240 6,365
8 Franchise Fees 1,800 1,854 1,910 1,967 2,026 2,067
9 Business Tax Certificates 3,158 3,252 3,317 3,417 3,519 3,590
10 Cannabis Tax 1,100 1,100 1,450 1,650 1,700 1,733
11 Total Tax & Franchise Revenue 95,942$ 97,960$ 100,702$ 103,549$ 106,340$ 109,220$
Fees for Service & Other Revenue
12 Police Services 688 612 612 624 637 649
13 Fire Services 1,458 1,578 1,578 1,609 1,642 1,674
14 Development Review 6,335 6,276 6,585 6,783 6,986 7,126
15 Parks & Recreation 1,969 2,000 2,047 2,088 2,129 2,151
16 General Government 446 459 468 477 487 497
17 Cannabis 210 208 233 237 242 247
18 Other Revenues 711 2,100 2,124 2,152 2,182 2,212
19 Subventions & Grants 777 665 682 440 441 442
20 FEMA Storm Reimbursment - ESTIMATE 4,208 4,208
21 Total Fees & Other Revenue $ 12,593 $ 18,103 $ 18,537 $ 14,411 $ 14,746 $ 14,998
22 Total Revenue $ 108,535 $ 116,064 $ 119,238 $ 117,960 $ 121,087 $ 124,218
23 Use of Funds
24 Staffing 65,401$ 66,977$ 70,244$ 71,587$ 73,053$ 74,355$
25 Contract Services 9,575$ 7,781$ 7,746$ 7,901$ 8,059$ 8,220$
26 Other Operating Expenditures 9,976$ 9,758$ 10,647$ 10,860$ 11,078$ 11,299$
27 Cost Allocation (4,462)$ (5,419)$ (5,582)$ (5,694)$ (5,808)$ (5,924)$
28 Total Operating Expenditure $ 80,491 $ 79,097 $ 83,055 $ 84,654 $ 86,382 $ 87,950
29 Debt Service 1,992$ 1,853$ 1,768$ 1,761$ 1,550$ 1,549$
30 Capital 22,484$ 29,571$ 27,102$ 27,644$ 28,197$ 28,761$
31 Transfers Out/(In)296$ 1,674$ 1,577$ 1,742$ 2,104$ 2,514$
32 Total Expenditure $ 105,263 $ 112,194 $ 113,502 $ 115,801 $ 118,233 $ 120,775
33 CalPERS ADP (using prior year fund balance) $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000
34
Beginning Fund Balance (After
CalPERS ADP) $ 36,609 $ 33,382 $ 29,533 $ 32,048 $ 31,702 $ 32,037
35 Recommended Ongoing SOBCs (See Section B-3) $ 479 $ 489 $ 504 $ 519 $ 535
36 Recommended One-time SOBCs (See Section B-3) $ 739 $ 732
37 Revenue Over/(Under) Expenses $ 3,272 $ 2,651 $ 4,515 $ 1,655 $ 2,335 $ 2,909
38 Ending Fund Balance $ 39,882 $ 36,033 $ 34,048 $ 33,702 $ 34,037 $ 34,946
39 Storm Expenditures - ESTIMATE (4,500) (4,500)
40 Ending Fund Balance $ 35,382 $ 31,533 $ 34,048 $ 33,702 $ 34,037 $ 34,946
41 General Fund Reserve 13,071 12,533 14,291 14,655 15,035 15,415
42 Revenue Stabilization Reserve 2,000 2,000 2,000 2,000 2,000 2,000
43 115 Pension Trust Fund 2,000 2,000 2,000 2,000 2,000 2,000
44 Restricted based on Audit 16,010 15,000 15,000 15,000 15,000 15,000
45 Undesignated Fund Balance $ 2,300 $ 0 $ 756 $ 47 $ 2 $ 531
2023-25 Financial Plan
Budget Document Pg. 34 Page 746 of 829
Section C: Enterprise Funds - Water Fund
Section C: Enterprise Funds
C-1: Water Fund
Overview
The Water Fund supports the activities needed to provide approximately two billion gallons of treated
water to the community each year. This includes operations and maintenance, infrastructure
replacement, debt service, and reimbursement to the City’s gene ral fund for services provided within
service departments such as the Human Resources Department, City Attorney’s Office, Finance
Department, and Public Works Department6. Water sales, base charges, sales to Cal Poly, and other
miscellaneous utilities-related fees comprise over 90% of forecasted revenues. General fund revenue,
such as property tax and sales tax, do not support water-related operations.
Over the past few years, water demand has remained relatively constant, with weather patterns having
minimal impact on overall water demand and corresponding water fund revenues. Minor increases in the
number of water customer accounts have offset the reductions in revenue from water conservation
improvements and behavioral changes associated with three consecutive years of drought. However, the
fund has experienced extraordinary increases in the cost of operations, which have largely been driven by
external factors that are not a result of operational modifications. Some of the significant drivers for
expenditure increases include:
1. $1.3 million increase in the cost of electricity
between FY21-22 and FY23-24
2. Approximately $238,000 increase in the cost
of chemicals between FY21-22 and FY23-24
3. A 29% increase in the California Construction
Cost Index between Feb-2021 and Feb-2023
4. Approximately $665,000 in increases in the
cost of staffing between FY21-22 and FY23-24
The minor long-term growth in revenue from
customer base increase and the moderate rate
increases that have been approved in the past few years are not sufficient to offset the elevated external
cost increases experienced in the current financial plan. This imbalance in anticipated revenues and
projected expenditures has resulted in the department requiring a revenue increase averaging 8.5 percent
across all water fund customer classes in FY2023-24 and 7.5 percent in FY2024-25.
6 Cost Allocation Plan: All of the City's general government and engineering programs are accounted and budgeted
for in the General Fund. However, some of these support service programs also benefit the City's enterprise
operations, and accordingly, payments are made from these funds to reimburse the General Fund for these services.
The payments are based on a Central Service Cost Allocation Plan prepared for this purpose, which distributes these
shared costs in a uniform, consistent manner in accordance with GAAP.
Figure 2: Electricity Costs - Water Fund
Budget Document Pg. 35 Page 747 of 829
Section C: Enterprise Funds - Water Fund
Revenue
Detailed revenue projections for this fund are included in the five-year forecast (lines 1-19) on page 42.
Water Rate Increases
The Water Fund will be requesting an overall fund-level revenue increase of 8.5 percent effective July 1,
2023, and 7.5 percent effective July 1, 2024. Proposed rate increases are higher than historic averages
and are largely dictated by macroeconomic conditions, noted above, which have resulted in increased
operational and capital delivery costs. The proposed water rate increases were developed through a rate
study conducted by an independent consultant and are primarily driven by general inflation and industry
specific commodity pricing increases that have far outpaced general inflation levels. The overall fund-level
rate increases of 8.5 percent and 7.5 percent referenced above represent the percentage increase in rate
revenue required by the water fund as a whole, not the specific increase that a customer may receive.
Actual rate increase percentages for customers vary based on customer account classification. The
proportional share of the overall rate increases was determined by the City’s rate consultant through a
cost of services study. A cost of services study is based on actual water use characteristics of the City’s
different classifications of customers such as single family, multifamily, non-residential, and irrigation
customers. These specific use characteristics help determine the proportional share of water revenue that
should be collected from each customer class to offset their actual impacts on department expenditures.
Due to water use characteristics changing over time, likely exacerbated by societal changes commencing
from the Covid-19 pandemic, and ongoing drought, some customer classifications will see rate increases
larger than overall fund-level need (8.5 percent and 7.5 percent), while others may see lesser rate
increases or a decrease in rates.
An additional driver of the higher-than-average proposed rate increases was the deferral and reduction
of rates in FY20-21. A FY19-20 – FY20-21 rate study identified that in order to maintain existing operations
a 5.5 percent water rate increase was necessary in FY19-20 and an additional 5.5 percent increase was
necessary in FY20-21. While the FY19-20 increase was applied in full and as scheduled, the FY20-21
increase was deferred from July of 2020 to February of 2021 and the originally approved amount of 5.5
percent was reduced to 3.6 percent.
This deferral and rate reduction was done to soften the increases during COVID-19 that the community
was experiencing. The Utilities Department estimates that the deferral and reduction of the FY20-21 rate
increase has resulted in $1.4 million reductions in revenue between July 2020 and June 2022, versus what
would have been collected had the rate increase been applied in full on July 1, 2021.
In accordance with Proposition 218, the proposed rate increases will be subject to a public notification
and protest process. The public hearing is scheduled to be held during the June 6, 2023, City Council
meeting. The proposed rates, if adopted, will add increased long-range stability to revenues and are
necessary to meet future infrastructure replacement and operational funding needs.
Table 9 - Proposed Water Rate Increases
2023-24 Proposed 2024-25 Proposed
8.5% 7.5%
Budget Document Pg. 36 Page 748 of 829
Section C: Enterprise Funds - Water Fund
Rate Assistance Program
Proposition 218 does not allow consumption or base rate charges billed to a customer to be utilized for
anything but the cost to deliver services. Consequently, the Utilities Department is unable to use rate
funds to provide low-income assistance programs. However, given that constraint, the City uses late fees
paid by utilities customers who do not make their payments on time, to fund its customer assistance
program. Eligible participants7 enrolled in the customer assistance program receive a 15% discount on
their water and sewer bill.
There are currently 142 customers enrolled in the customer assistance program. The Utilities Department
have utilized billing inserts, social media, Council meetings, and radio advertising to increase awareness
of the program. The Utility Billing section is also examining how the program requirements may be
modified to better support low-income customers through outreach and consultation with the City’s DEI
Manager.
Operating Expenditures
Operating expenditures for the Water Fund have increased substantially over the past few years. Major
drivers for operating expenditure increases are as follows:
1. PG&E Electricity rates have increased over 58 percent over two years.
2. Chemical costs have increased 48 percent
over two years.
3. Material costs have increased substantially,
with industry specific material costs such as
piping materials sometimes increasing
more than 100 percent.
4. Salaries and Benefits have increased in
alignment with the recent compensation
plan and bargaining unit negotiations
(Resolution No. 11316 and 11379).
Table 10 - Water Fund Expenditures (Excluding Capital)
7 A customer is eligible to receive rate assistance if they receive CalWORKs, CalFresh, Supplemental Social Security,
or Veteran Survivor’s Pension Benefits. A customer may also be eligible if they declare their household income to
be less than twice the federal poverty rate.
Water Fund: Expenditure by
Category 2022-23 Budget 2023-24 Proposed
Budget
2024-25 Proposed
Budget
Salaries and Benefits 4,968,326$ 5,287,432$ 5,480,799$
Contract Services 665,420$ 698,590$ 742,984$
Other Operating Expenditures 12,175,243$ 13,145,821$ 13,532,692$
Utilities 691,085$ 1,033,139$ 1,129,877$
Transfers 2,311,753$ 2,826,143$ 2,910,927$
Debt 2,442,558$ 1,870,392$ 1,868,807$
Water Fund Total 23,254,385$ 24,861,518$ 25,666,086$
2023-25 Financial Plan
Figure 3: 5-Year PPI Water & Sewer Mains
Budget Document Pg. 37 Page 749 of 829
Section C: Enterprise Funds - Water Fund
Cost Reductions and Mitigations – Focused on Energy Efficiencies
In order to offset increases in operating expenditures to the greatest extent feasible, the water fund
recently made investments in several projects that were designed to lower ongoing operating costs by
“peak shaving” or using batteries to supply energy during grid peak energy periods. These projects include
completion of the Water Treatment Plant Energy Efficiency Upgrade Project, the Tesla Battery Storage
Project, and the Filter Media Replacement Study. The Water Treatment Plant Energy Efficiency Upgrade
Project was designed to reduce electricity use by approximately 20 percent, thus reducing costly electricity
expenditures. The grant-funded Tesla Battery Storage Project was designed to shave peak elect ricity
demand at the Water Treatment Plant while adding a backup power supply capable of operating the plant
for approximately half of a day in case of loss of power. The Filter Media Replacement Study was
conducted in order to assess the effectiveness of the material used within the Water Treatment Plant’s
filtration process. Inefficient filtration can result in high chemical costs and energy-intensive backwash
cycles occurring too frequently. In addition to these projects, the Utilities Department is conducting a
Water Treatment Plant Infrastructure Renewal Strategy that will identify modifications to the Water
Treatment Plant that can result in reduced operational costs. The plan intends to analyze current
operating hours, current treatment technologies, effectiveness of aging equipment, and a variety of other
measures aimed at improving resiliency and reducing operating costs.
While Water Treatment Plant chemical and electricity use are a large driver for increased expenditures,
source water pumping costs are the single largest driver for increased expenditures in the Water Fund.
Pumping water from distant reservoirs is energy-intensive and rapidly increasing electricity costs have
significantly impacted source water pumping budgets. To offset these increases two Tesla Batteries are
being added to Nacimiento Water Project Pump Stations. These batteries will operate similarly to the
Tesla Battery at the Water Treatment Plant by shaving peak electricity demand, thus reducing electricity
costs when Nacimiento water is needed. Additionally, the City was recently approved for a $5.9M grant
to construct groundwater wells within the local groundwater basin. These wells will be designed to treat
and pump local groundwater for approximately 10 percent of the City’s water supply, thus reducing
electricity costs associated with pumping and treating water from distant surface water reservoirs.
Budget Document Pg. 38 Page 750 of 829
Section C: Enterprise Funds - Water Fund
SOBCs
Table 11 - Water Fund SOBCs 2023-24 2024-25
1 5-Year TPS Cla-Val Service (One-time) $ - $ 10,000
Periodic service on a pressure reducing valve at the Water Treatment Plant. Service is recommended
every five years.
2 Chemtrac Chlorine Analyzers Probes/Parts (Ongoing) $ 16,800 $ 16,800
This equipment purchase will increase operational intelligence by optimizing analysis of chlorine
dosing more reliably and efficiently. Automated chlorine analyzer tips need to be replaced annually.
There are 4 analyzers total (+2 for stock) at $2,800/probe.
3 Dell or iPad for Hach WIMS (One-time) $ 7,500 $ -
This is a one-time cost to facilitate the digitization of WTP operations.
4 Department wide strategic plan (One-time) $ - $ 27,000
The department wide strategic plan is needed to better assess and direct work efforts to optimize
performance. Currently includes funding from Solid Waste and Recycling (10%), Sewer (45%), and
Water (45%). May include Stormwater at a future date.
5 Front Gate Controller Replacement (One-time) $ 20,000 $ -
This item is needed to manage access and security to the Water Treatment Plant.
6 Needed Lab upgrades (One-time) $ 16,000 $ -
Lab Compliance and efficiency improvement recommendations per audit by the Water Quality Lab.
These upgrades include a new automated titration unit for alkalinity and hardness. This will result in
more accurate results and will save approximately 0.5 staff hours daily.
7 New Contract - Engineering Technician I-III (One-time) $43,448 $43,034
To better support water and sewer operations, the addition of an Engineering Technician I -III in
Financial Plan 2023-25 is recommended. This position will benefit the City by performing entry level
Engineering work such as plan review, data entry, and sewer lateral program management. The
position will also support the division during a time of peak workload. The cost of this position will be
split between Water, Sewer, and Whale Rock Funds.
9 New Contract - Water Treatment Intern / GIS Intern (One-time) $ 60,000 $ 60,000
The Utilities Department is in the process of digitizing records and operations, including bringing the
WTP into the GIS network. This position would support data digitization efforts in the Water Treatment
and Water Distribution sections, as well as coordinating with existing GIS staff to improve data quality,
workflows, and GIS data management processes.
10 Reclassification - Water Resources Technician (Ongoing) $ 19,636 $ 20,225
Reclassification of the two existing water resources technician positions is needed in order to add new
job descriptions and classifications for a "Water Resources Specialist - Recycled Water & Cross
Connection Control" and "Water Resources Specialist - Water Conservation and Groundwater
Management".
11 Tanglewood MCC Display Screen Replacement (One-time) $ 8,000 $ -
This is a one-time cost to replace a computerized equipment control screen that needs to be replaced
because of water damage.
Total $242,787 $227,486
Budget Document Pg. 39 Page 751 of 829
Section C: Enterprise Funds - 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 increasing with source water supplied to the
City from reservoirs as far as 50 miles away, then treated and delivered through over 190 miles of publicly
owned drinking water pipelines. The Water Fund’s capital improvement program funding requirement is
$6,842,477 in 2023-24 and $5,318,758.56 in 2024-25, as presented in the 2023-25 Financial Plan.
Table 12 - Water Fund Capital Projects
Forecasted Project Budgets (in thousands)2023-24 2024-25 2025-26 2026-27 2027-28
1 879 Roofing Project (Oper Transfer Out)50$ -$ -$ -$ -$
2 Buchon and Santa Rosa -$ -$ 100$ -$ -$
3 Chorro - Highland to Meinecke 24" Pipeline Repl 100$ 1,900$ -$ -$ -$
4 Craig, Christina, and Jaycee Pipeline Replacement -$ -$ -$ -$ -$
5 EV Charging Stations-879 Morro 50$ -$ -$ -$ -$
6 Filter Media Replacement and Underdrain Repairs -$ -$ 60$ 60$ 250$
7 Fleet Replacement: Utilities 60$ 150$ 715$ -$ 995$
8 Highland and UPRR at Cal Poly Pipeline Replacement -$ -$ -$ 850$ -$
9 IT Replacements - Annual Asset Maintenance 30$ 172$ 32$ 9$ 18$
10 Johnson - Iris to Bishop Pipeline Replacement 3,300$ -$ -$ -$ -$
11 Orcutt Street - Fernwood to Laurel Pipeline -$ 25$ 675$ -$ -$
12 Pacific Well - Security Fencing -$ -$ -$ -$ -$
13 Patricia, Highland, and La Entrada Pipeline Repl -$ -$ -$ 127$ 1,397$
14 Recycled Water Pump Station Maintenance -$ 60$ -$ -$ -$
15 Recycled Water Storage Tank -$ -$ -$ -$ 20$
16 Reservoir 2 Replacement -$ 900$ 500$ -$ -$
17 Rockview - Stoneridge to Broad Pipeline Repl -$ -$ 130$ 1,530$ -$
18 Salinas Reservoir Transfer of Ownership Plan 150$ -$ -$ -$ -$
19 Santa Rosa - Stenner Creek to Highland Pipeline Repl 230$ -$ 8,230$ -$ -$
20 SGMA GSP (Groundwater Basin Management)-$ 150$ 150$ 150$ 150$
21 Source Water Roadmap -$ 90$ -$ -$ -$
22 Stenner Canyon Waterline Replacement -$ -$ 80$ 1,100$ -$
23 Tank Farm - Long to Innovation Recycled Water Pipe -$ -$ -$ 25$ 625$
24 Tank Maintenance and Cleaning -$ -$ -$ 50$ 250$
25 UV Bulb Replacement (annual replacement)-$ 10$ 10$ 10$ 10$
26 Water Distribution System - Point Repairs 250$ -$ 250$ -$ 250$
27 Water Meters and Boxes 168$ 172$ 175$ 175$ 175$
28 Water Storage Tank Maintenance 755$ 1,000$ 127$ 1,100$ 1,100$
29 Water Treatment Plant - Building Maintenance 650$ -$ -$ -$ -$
30 Water Treatment Plant - Facility Asset Replacement 245$ 115$ 145$ 45$ 140$
31 Water Treatment Plant - Major Equipment Maint 189$ 180$ 180$ 180$ 180$
32 Water Treatment Plant - Water Meter Replacement 10$ 30$ 55$ -$ -$
33 Water Utility Trench Repair (91147)280$ 280$ 280$ 280$ 280$
34 Water Valve Cover Adjustments 276$ 35$ 35$ 35$ 35$
35 Waterline Abandonment & Connections 50$ 50$ 50$ 50$ 50$
36 Future Public Works Project with Water Contributions -$ -$ -$ 50$ 50$
37 Total 6,842$ 5,319$ 11,979$ 5,826$ 5,975$
Budget Document Pg. 40 Page 752 of 829
Section C: Enterprise Funds - Water Fund
Below is a highlight of major 2023-25 Water Fund capital projects:
Johnson – Iris to Bishop Water Pipeline Replacement – This project will replace a 16-inch water main that
supplies water to over a quarter of the of the City’s residents. This pipeline has a history of failure due to
the age of the asset and replacement will ensure continued service delivery to the community. This project
will cost $3.3 million in FY23-24.
Chorro – Highland to Meinecke 24-inch Pipeline Replacement -- This project will replace a 24-inch water
main that supplies water to roughly half of the City. This pipeline is constructed of concrete cylind er pipe
which is non-standard in the water distribution system and difficult for staff to repair in a timely manner
if damaged. This project will cost $100,000 for design in FY23-24, and $1.9 million for construction in FY24-
25.
Water Treatment Plant Roof Replacement – The water treatment plant treats approximately 2 billion
gallons of water annually. Due to the damage associated with recent storms, the roof of this facility has
leaks that need to be addressed. This project will cost $600,000 in FY23-24. The City is actively working
with its insurance provider to attempt to recuperate this expense. Utilities staff are exploring
opportunities to leverage insurance or FEMA to aid in cost recovery.
Reservoir 2 Replacement – Reservoir 2 is the largest treated water storage tank in the City. This asset
ensures that the City maintains adequate fire pressure and treated water supply for Cal Poly and nearly
half of the City. Reservoir 2 is approximately 80 years old and is near the end of its useful life. While the
construction phase of this project is planned for FY29-30 and FY30-31, staff anticipate entering the design
phase in FY24-25. This project will cost $900,000 in FY24-25 for design work. In all, it is anticipated that
this project will cost approximately $19.9 million for design, environmental work, and construction.
Budget Document Pg. 41 Page 753 of 829
Section C: Enterprise Funds - Water Fund
Table 13 - Water Fund Five-Year Forecast
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
Approved
Budget
Proposed
Budget
Proposed
Budget Forecast Forecast Forecast
1 Revenue 27,848$ 28,963$ 29,363$ 39,554$ 32,985$ 34,457$
2 43201-Miscellaneous Penalties 118$ 118$ 118$ 118$ 118$ 118$
3 44101-Interest on Investment 50$ 50$ 50$ 50$ 50$ 50$
4 44306-Credit Collections 14$ 14$ 14$ 14$ 14$ 14$
5 44310-Miscellaneous Revenue 20$ 20$ 20$ 20$ 20$ 20$
6 45204-Prop 1B Revenue 266$ -$ -$ -$ -$ -$
7 45211-Other State Grants 698$ 698$ -$ -$ -$ -$
8 46102-Development Review Fees 26$ 26$ 26$ 26$ 26$ 26$
9 46701-Sales to Cal Poly 1,045$ 1,106$ 1,184$ 1,340$ 1,458$ 1,558$
10 46702-Water Sales 16,329$ 17,717$ 19,045$ 20,474$ 21,395$ 22,358$
11 46703-Utilities Base Charges 5,754$ 6,243$ 6,712$ 7,215$ 7,540$ 7,879$
12 46704-Reclaimed Water Sales 995$ 1,080$ 1,161$ 1,248$ 1,304$ 1,363$
13 46708-Utilities Set-up Fees 130$ 60$ 60$ 60$ 60$ 60$
14 46709-Other Utilities Charges 1$ 1$ 1$ 1$ 1$ 1$
15 46712-Low Income Subsidy (100)$ (100)$ (100)$ (100)$ (100)$ (100)$
16 46713-Cal Poly Capacity & Resilience 259$ 258$ 272$ 288$ 299$ 310$
17 47201-Impact Fees 1,370$ 800$ 800$ 800$ 800$ 800$
18 48002-Long-Term Debt Proceeds 873$ 873$ -$ 8,000$ -$ -$
19 Expenditure by Category 40,415$ 31,990$ 31,601$ 39,463$ 34,683$ 35,709$
20 Capital Asset Expense 16,819$ 6,842$ 5,319$ 11,979$ 5,826$ 5,975$
21 Debt Services 2,443$ 1,870$ 1,869$ 1,866$ 2,391$ 2,390$
22 General Government 2,312$ 2,826$ 3,250$ 3,738$ 3,924$ 4,121$
23 Operations 13,593$ 14,946$ 15,460$ 16,000$ 16,480$ 16,974$
24 Salaries and Benefits 5,249$ 5,504$ 5,704$ 5,880$ 6,061$ 6,248$
25 Expenditure by Function 40,415$ 31,990$ 31,601$ 39,463$ 34,683$ 35,709$
26 Water Administration/Engineering 1,499$ 1,510$ 1,604$ 1,672$ 1,695$ 1,746$
27 Water Source of Supply 14,753$ 11,881$ 12,421$ 13,330$ 13,055$ 14,061$
28 Water Treatment 11,848$ 7,984$ 8,502$ 7,583$ 9,058$ 8,461$
29 Water Distribution 8,629$ 6,692$ 4,676$ 12,102$ 5,856$ 6,184$
30 Water Resources 606$ 640$ 627$ 646$ 666$ 686$
31 Utility Billing 308$ 324$ 346$ 356$ 367$ 378$
32 General Government 2,312$ 2,826$ 3,250$ 3,738$ 3,924$ 4,121$
33 Non Departmental 460$ 133$ 175$ 35$ 62$ 72$
34 Change in Financial Position
(Revenues minus Expenditures)(12,567)$ (3,027)$ (2,238)$ 91$ (1,698)$ (1,252)$
35 Working Capital -Beginning 34,725$ 21,886$ 18,181$ 15,236$ 15,162$ 13,300$
36 CALPERS ADP 272$ 679$ 706$ 165$ 165$ 165$
37 Working Capital - After CALPERS 21,886$ 18,181$ 15,236$ 15,162$ 13,300$ 11,883$
38 Operating Reserve 4,719$ 5,029$ 5,257$ 5,497$ 5,771$ 5,947$
39 Rate Stabilization 2,360$ 2,515$ 2,628$ 2,748$ 2,886$ 2,973$
40 UFL Trust Fund 176$ 176$ 176$ 176$ 176$ 176$
41 Unreserved Working Capital Year End 14,632$ 10,461$ 7,175$ 6,742$ 4,467$ 2,787$
in thousands
2023-25 Financial Plan
Budget Document Pg. 42 Page 754 of 829
Section C: Enterprise Funds – Sewer Fund
C-2: Sewer Fund
The Sewer Fund supports the activities needed to treat approximately 1.1 billion gallons of wastewater
from the community each year. This includes operations and maintenance, infrastructure replacement,
debt service, and reimbursement to the City’s general fund for services provided within service
departments such as the Human Resources Department, City Attorney’s Office, Finance Department, and
Public Works Department8. Sewer service charges, base charges, including Cal Poly, and other
miscellaneous utilities-related fees comprise over 95% of forecasted revenues. General fund revenue,
such as property tax and sales tax, do not support sewer-related operations.
Over the past few years, wastewater flows have remained relatively constant. Minor increases in the
number of sewer customer accounts have offset the reductions in revenue from water conservation
improvements and behavioral changes associated with three consecutive years of drought. However, the
fund has experienced extraordinary increases in the cost of operations, which have largely been driven by
external factors that are not a result of operation-level program changes. Some of the significant drivers
for expenditure increases include:
1.$259,000 increase in the cost of electricity
between FY21-22 and FY23-24
2.A 29% increase in the California Construction
Cost Index between Feb-2021 and Feb-2023
3.Approximately $535,000 in increases in the
cost of staffing between FY21-22 and FY23-24
The slight long-term growth in revenue from customer
base increase and the moderate rate increases that
have been approved in the past few years are not
8 Cost Allocation Plan: All of the City's general government and engineering programs are accounted and budgeted
for in the General Fund. However, some of these support service programs also benefit the City's enterprise
operations, and accordingly, payments are made from these funds to reimburse the General Fund for these services.
The payments are based on a Central Service Cost Allocation Plan prepared for this purpose, which distributes these
shared costs in a uniform, consistent manner in accordance with GAAP.
Figure 4: Electricity Costs - Sewer Fund
sufficient to offset the elevated external cost increases
experienced recently. This imbalance in anticipated revenues and projected expenditures has resulted in
the department requiring a revenue increase averaging 4 percent across all sewer fund customer classes
in FY2023-24 and 4 percent in FY2024-25.
Revenue
Detailed revenue projections for this fund are included in the five-year forecast (lines 1-19) on page 49.
Sewer Rate Increases
The Sewer Fund will be requesting an overall fund-level rate increase of 4 percent effective July 1, 2023
and 4 percent effective July 1, 2024. Proposed rate increases are largely dictated by macroeconomic
conditions which have resulted in increased operational and capital delivery costs. The proposed sewer
rate increases were developed through a rate study conducted by a third-party consultant and are
primarily driven by general inflation and industry specific commodity pricing increases that have far
outpaced general inflation levels. The overall fund-level rate increases of 4 percent and 4 percent
referenced above represent the percentage increase in rate revenue required by the sewer fund as a
Budget Document Pg. 43 Page 755 of 829
Section C: Enterprise Funds – Sewer Fund
whole, not the specific increase that a customer may receive. Actual rate increase percentages for
customers vary based on customer account classification. The proportional share of the overall rate
increases was determined by the City’s rate consultant through a cost of services study. A cost of services
study is based on actual sewer use characteristics of the City’s different classifications of customers such
as single family, multifamily, and non-residential customers. These use characteristics help determine the
proportional share of sewer revenue that should be collected by each customer class to offset their actual
impacts on department expenditures. Due to sewer use characteristics changing over time, likely
exacerbated by societal changes commencing from the Covid-19 pandemic and ongoing drought, some
customer classifications will see rate increases larger than overall fund-level need (4 percent and 4
percent), while others may see smaller rate increases.
An additional driver of the proposed rate increases was the deferral and reduction of rates in FY20 -21. A
FY19-20 – FY20-21 rate study identified that in order to maintain existing operations a 5.5 percent sewer
rate increase was necessary in FY19-20 and an additional 5 percent increase was necessary in FY20-21.
While the FY19-20 increase was applied in full and as scheduled, the FY20-21 increase was deferred from
July of 2020 to February of 2021 and the originally approved amount of 5 percent was reduced to 3.6
percent. This deferral and rate reduction was done out of an abundance of caution as the community was
experiencing impacts from the Covid-19 pandemic. The Utilities Department estimates that the deferral
and reduction of the FY20-21 rate increase has resulted in $856,000 reductions in revenue between July
2020 and June 2022, versus what would have been collected had the rate increase been applied in full on
July 1, 2021.
In accordance with Proposition 218, the proposed rate increases will be subject to a public notification
and protest process. The public hearing is scheduled for the June 6, 2023, City Council meeting. The
proposed rates, if adopted, will add increased long-range stability to revenues and are necessary to meet
future infrastructure replacement and operational funding needs.
Table 14 - Proposed Sewer Rate Increases
2023-24 Proposed 2024-25 Proposed
4% 4%
Rate Assistance Program
Proposition 218 does not allow consumption or base rate charges billed to a customer to be utilized for
anything but the cost to deliver services. Consequently, the Utilities Department is unable to use rate
funds to provide low-income assistance programs. However, like the Water Fund, the Sewer Fund uses
late fees paid by utilities customers who do not make their payments on time to fund the customer
assistance program. Eligible participants9 enrolled in the customer assistance program receive a 15%
discount on their water and sewer bill.
There are currently 142 customers enrolled in the customer assistance program. The Utilities Department
have utilized billing inserts, social media, Council meetings, and radio advertising to increase awareness
of the program. The Utility Billing section is also examining how the program requir ements may be
modified to better support low-income customers.
9 A customer is eligible to receive rate assistance if they receive CalWORKs, CalFresh, Supplemental Social Security,
or Veteran Survivor’s Pension Benefits. A customer may also be eligible if they declare their household income to
be less than twice the federal poverty rate.
Budget Document Pg. 44 Page 756 of 829
Section C: Enterprise Funds – Sewer Fund
Operating Expenditures
Operating expenditures for the Sewer Fund have increased substantially over the past few years. Major
drivers for operating expenditure increases are as follows:
1. PG&E Electricity rates have increased
over 36 percent over two years.
2. Material costs have increased
substantially, with industry specific
material costs such as piping materials
sometimes increasing more than 100
percent.
3. Salaries and Benefits have increased in
alignment with the recent compensation
plan and bargaining unit negotiations
(Resolution No. 11316 and 11379).
In order to offset increases in operating expenditures, the sewer fund continues to invest resources into
projects and initiatives designed to lower ongoing operating costs. The Water Resource Recovery Facility
(WRRF) was the first facility in the State to participate in a collaborative energy efficiency project in 2015
in partnership with PG&E (Sustainable Solutions Turnkey, or SST). Since 2015, the WRRF has enrolled in
additional energy efficiency programs, and is currently enrolled in several efforts designed to crowdsource
solutions with other State and Federal partnerships across the US. California Polytechnic University is a
longstanding partner and has a student-led research facility setup on site at the WRRF which offers
opportunities for energy efficiency collaboration and ongoing studies. Some additional projects include
the development of an energy dashboard that will ultimately be able to monitor energy usage down to
the component level at the WRRF, installation of a second biogas cogeneration unit at the WRRF,
increased use of and refinement of existing automation systems, exploration of distributed pretreatment
of organic loading in the collection system to reduce energy requirements at the WRRF, and the
researching of grants that would fund emerging technologies designed to reduce the energy requirements
of wastewater treatment.
Table 15 - Sewer Fund Expenditures (Excluding Capital)
*The annual repayment of approximately $5.9 million for the SRF loan begins in FY 2024-25.Proposed rates
and the corresponding rate studies consider this debt service.
Sewer Fund: Expenditure by
Category 2022-23 Budget 2023-24 Proposed
Budget
2024-25 Proposed
Budget
Salaries and Benefits 4,889,494$ 5,347,173$ 5,579,924$
Contract Services 863,361$ 981,229$ 1,023,637$
Other Operating Expenditures 1,741,111$ 1,669,863$ 1,715,393$
Utilities 937,710$ 1,062,892$ 1,066,123$
Transfers 2,573,783$ 3,104,155$ 3,197,280$
Debt* 1,380,938$ 1,382,346$ 7,005,933$
Sewer Fund Total 12,386,397$ 13,547,657$ 19,588,289$
2023-25 Financial Plan
Figure 5: 5-Year PPI Water & Sewer Mains
Budget Document Pg. 45 Page 757 of 829
Section C: Enterprise Funds – Sewer Fund
SOBCs
Table 16 - Sewer Fund SOBCs 2023-24 2024-25
1 Department wide strategic plan (One-time) $ - $ 27,000
The department wide strategic plan is needed to better assess and direct work efforts to optimize
performance. Currently includes Solid Waste and Recycling (10%), Sewer (45%), and Water (45%).
May include Stormwater at a future date.
2 New Contract - Engineering Technician I-III (One-time) $54,310 $53,792
To better support water and sewer operations, the addition of an Engineering Technician I-III in
Financial Plan 2023-25 is recommended. This position will benefit the City by performing entry
level Engineering work such as plan review, data entry, and sewer lateral program management.
The position will also support the division during a time of peak workload. The cost of this position
will be split between Water, Sewer, and Whale Rock Funds.
3 New Contract - Intern $ 89,652 $ 93,057
To better support sewer operations, it is recommended that the Utilities Department add a
Wastewater Intern in Financial Plan 2023-25. This position will benefit the City by creating a
candidate pool for future WRRF Operator and other related Utilities positions, creating
opportunities for future wastewater professionals to obtain the required 1,800 hours of time
spent in a facility, and providing supplemental support to meet regulatory requirements.
4 SSMP Review Services $ 14,000 $ (1,000)
The Sewer System Management Plan is required every five years. Staff have been maintaining a
modest budget ($1,000) for updates as pertinent during off-cycle years.
5 UV Bulbs for Disinfection $ 18,000 $ 18,000
This is being moved from CIP to operating expenditures.
Total $230,273 $244,642
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 WRRF
upgrade and is also planning for 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 proj ect. The Sewer
Fund’s capital improvement program funding requirement is $9,451,843.00 in 2023-24 and $3,631,305.83
in 2024-25, as presented in the 2023-25 Financial Plan.
Budget Document Pg. 46 Page 758 of 829
Section C: Enterprise Funds – Sewer Fund
Table 17 - Sewer Fund Capital Projects
Below is a highlight of several key 2023-25 Sewer Fund capital projects and their proposed
expenditures:
WRRF Upgrade Project - The WRRF will continue construction through the 2023-25 Financial Plan with
significant construction completed in 2023 and final project completion estimated to be in the first quarter
of 2024. This regulatory and asset life cycle driven project is ongoing, with a total construction budget of
$140,000,000. Once completed, the new WRRF will be in full compliance with all Local, State and Federal
discharge requirements, will have the ability to produce higher quality recycled water, offsite odor
impacts will be reduced, and community education elements will be refined.
WWC/Wastewater Maintenance Shop – The City’s Prado Road Overpass project will require removal of
the existing Wastewater Collections (WWC) maintenance shop and adjoining office spaces, which are
located at the northwestern permitter of the City’s Corporation Yard at 25 Prado Road. In addition, new
and existing infrastructure under final phases of construction at the WRRF (35 Prado Road) will require
additional maintenance and storage facilities. For FY23-24, $6,500,000 has been allocated for design and
construction of a new combined wastewater maintenance structure, which will house staff and meet all
current and forecasted maintenance and storage requirements for the WWC and WRRF programs. The
original scope of this project has been reduced, which was originally proposed as an additive alternate
component of the larger WRRF Project (rejected due to bid amount).
Forecasted Project Budgets (in thousands)2023-24 2024-25 2025-26 2026-27 2027-28
1 879 Roofing Project (Oper Transfer Out)50$ -$ -$ -$ -$
2 Bee Bee - South Street to Sandercock Pipeline Repl -$ -$ -$ 400$ -$
3 Broad, Murray, and Chorro Pipeline Replacement -$ -$ -$ -$ 145$
4 Demolish Old Effluent Structure and Minor Paving -$ -$ -$ 50$ 495$
5 EV Charging Stations-879 Morro 50$ -$ -$ -$ -$
6 Fleet Replacement: Utilities 85$ -$ 20$ 40$ 570$
7 Flow Study -$ -$ -$ -$ -$
8 Foothill - Cuesta Sewer Siphon -$ -$ 200$ 250$ 2,750$
9 Foothill-Chorro Pipeline Replacement -$ 250$ 2,750$ -$ -$
10 Inflow/Infiltration Reduction -$ 250$ 250$ 250$ 250$
11 Infrastructure Renewal Strategy Report Update -$ -$ -$ -$ -$
12 IT Replacements - Annual Asset Maintenance 51$ 180$ 35$ 9$ 26$
13 Johnson and Buchon Pipeline Replacement -$ -$ -$ 135$ 2,485$
14 Morro, Mill, Santa Rosa, Chorro Pipeline Replacement 253$ -$ -$ -$ -$
15 San Jose, Ramona, Monte Vista, and California Pipe -$ 1,225$ -$ -$ -$
16 Screw Press -$ -$ -$ 200$ 3,360$
17 Serrano, Bressi, Dana, and Higuera Pipeline Repl 25$ 1,275$ -$ -$ -$
18 Sewer Lift Station Maintenance 200$ -$ 80$ -$ 80$
19 Sewer Maintenance Hole Cover Adjustments 180$ 30$ 30$ 30$ 30$
20 Silver City Lift Station 70$ 100$ 1,980$ -$ -$
21 Taft, Hathaway, Phillips, Buena Vista, and Loomis 1,225$ -$ -$ -$ -$
22 Trench Repair 25$ 25$ 25$ 25$ 25$
23 Wastewater Collection System - Point Repairs 120$ -$ 120$ -$ 120$
24 Water Meters and Boxes 168$ 172$ 175$ 175$ 175$
25 WRRF - Building Maintenance 150$ -$ 825$ -$ -$
26 WRRF - Facility Asset Replacement 150$ 125$ 125$ 75$ 50$
27 WRRF Power Cogeneration Upgrade 150$ -$ 1,475$ -$ -$
28 WWC Shop 6,500$ -$ -$ -$ -$
29 Future Public Works Project with Sewer Contributions -$ -$ -$ 50$ 50$
30 Total 9,452$ 3,631$ 8,090$ 1,689$ 10,611$
Budget Document Pg. 47 Page 759 of 829
Section C: Enterprise Funds – Sewer Fund
WRRF Power Cogeneration Upgrade – The new WRRF will replace existing costs associated with legacy
chemical treatment with increased electricity usage. In an effort to balance this increased cost and take
advantage of the additional biogas produced from the new facility, the City plans to install an additional
biogas driven cogeneration unit. For FY23-24, $150,000 has been allocated to design work for this project,
and $1,475,000 has been allocated for construction of the new unit in FY25-26.
Serrano, Bressi, Dana, and Higuera Pipeline Replacement – This project will replace various sewer mains
that are in poor condition and some that over at or near capacity. For FY 24 -25, $1,300,000 has been
allocated for design and construction.
Taft, Hathaway, Philips, Buena Vista, and Loomis Pipeline Replacement – This project will replace various
sewer mains that are in poor condition. For FY23-24, $1,225,000 has been allocated for construction and
design.
Infrastructure Renewal Strategy Update/ Wastewater Collection System Flow study – This project will
update the City’s hydraulic model (last completed in 2012) of its wastewater collection system, which is
used to determine system capacities and to collect flow data focused on reduction of stormwater
infiltration and intrusion (I&I). The updated hydraulic model and corresponding report will serve to
update the basis of the lateral offset program and will inform a strategy for mainline sewer replacement
projects. Funding of $430,000 was allocated for FY22-23 for this two-year effort. The final study and report
is expected to be completed in 2024.
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. Carryover
funding from FY22-23 is adequate for this program’s FY 23-34 requirements, and an additional $250,000
is programmed for FY24-25.
Budget Document Pg. 48 Page 760 of 829
Section C: Enterprise Funds – Sewer Fund
Table 18 - Sewer Fund Five-Year Forecast
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
Approved
Budget
Proposed
Budget
Proposed
Budget Forecast Forecast Forecast
1 Revenue 52,927$ 53,190$ 21,400$ 22,144$ 22,929$ 23,626$
2 42105-Industrial User Permits 85$ 85$ 85$ 85$ 85$ 85$
3 43201-Miscellaneous Penalties 120$ 118$ 118$ 118$ 118$ 118$
4 44101-Interest on Investment 50$ 50$ 50$ 50$ 50$ 50$
5 44306-Credit Collections 10$ 14$ 14$ 14$ 14$ 14$
6 44310-Miscellaneous Revenue 20$ 20$ 20$ 20$ 20$ 20$
7 45211-Other State Grants 1,386$ 1,386$ -$ -$ -$ -$
8 46102-Development Review Fees 26$ 26$ 26$ 26$ 26$ 26$
9 46701-Sales to Cal Poly 1,026$ 1,013$ 1,009$ 991$ 984$ 960$
10 46703-Utilities Base Charges 4,816$ 5,008$ 5,209$ 5,417$ 5,634$ 5,831$
11 46705-Sewer Service Charges 12,792$ 13,304$ 13,836$ 14,389$ 14,965$ 15,489$
12 46708-Utilities Set-up Fees 60$ 60$ 60$ 60$ 60$ 60$
13 46709-Other Utilities Charges 70$ 1$ 1$ 1$ 1$ 1$
14 46712-Low Income Subsidy (100)$ (100)$ (100)$ (100)$ (100)$ (100)$
15 46713-Cal Poly Capacity & Resilience 244$ 473$ 473$ 473$ 473$ 473$
16 47201-Impact Fees 1,190$ 600$ 600$ 600$ 600$ 600$
17 48002-Long-Term Debt Proceeds 31,132$ 31,132$ -$ -$ -$ -$
18 Expenditure by Category 89,645$ 23,150$ 23,760$ 29,167$ 23,265$ 32,710$
19 Capital Asset Expense 76,814$ 9,452$ 3,631$ 8,090$ 1,689$ 10,611$
20 Debt Services 1,381$ 1,382$ 7,006$ 7,099$ 7,090$ 7,088$
21 General Government 2,574$ 3,102$ 3,567$ 4,102$ 4,307$ 4,523$
22 Operations 3,632$ 3,745$ 3,850$ 3,995$ 4,115$ 4,238$
23 Salaries and Benefits 5,245$ 5,469$ 5,706$ 5,882$ 6,064$ 6,251$
24 Expenditure by Function 89,645$ 23,150$ 23,760$ 29,167$ 23,265$ 32,710$
25 Wastewater Admin and Eng 2,837$ 2,943$ 2,868$ 2,938$ 2,962$ 3,014$
26 Wastewater Collection 22,009$ 10,337$ 4,865$ 7,198$ 2,902$ 8,023$
27 Environmental Programs 282$ 319$ 326$ 336$ 386$ 427$
28 Water Resource Recovery 60,290$ 5,110$ 4,955$ 7,429$ 5,481$ 9,443$
29 Utility Billing 310$ 324$ 346$ 356$ 367$ 378$
30 Water Quality Lab 922$ 864$ 844$ 870$ 897$ 924$
31 General Government 2,574$ 3,102$ 3,567$ 4,102$ 4,307$ 4,523$
32 Non Departmental 421$ 151$ 180$ 35$ 59$ 76$
33 SRF Loan -$ -$ 5,809$ 5,903$ 5,903$ 5,903$
34 Change in Financial Position (Revenues minus Expenditures)(36,718)$ 30,040$ (2,360)$ (7,024)$ (336)$ (9,084)$
35 Working Capital -Beginning 47,774$ 10,777$ 40,125$ 37,045$ 29,851$ 29,346$
36 CALPERS Additional Pmt 280$ 692$ 721$ 169$ 169$ 169$
37 Working Capital - After CALPERS 10,777$ 40,125$ 37,045$ 29,851$ 29,346$ 20,092$
38 Operating Reserve 2,566$ 2,740$ 4,026$ 4,216$ 4,315$ 4,420$
39 Rate Stabilization 642$ 685$ 1,006$ 1,054$ 1,079$ 1,105$
40 Other Reserves (i.e. UFL Trust Fund,
SRF Loan)3,134$ 6,087$ 6,087$ 6,087$ 6,087$ 6,087$
41 Unreserved Working Capital Year End 4,435$ 30,614$ 25,925$ 18,495$ 17,865$ 8,480$
in thousands
2023-25 Financial Plan
Budget Document Pg. 49 Page 761 of 829
Section C: Enterprise Funds – Parking Fund
C-3: Parking Fund
Overview
The fiscal outlook for the next two years shows the capacity of the Parking Fund’s working capital balance
to support the debt financing associated with the Cultural Arts District Parking Structure project, the
continued loss of high rate of return meter spaces for parklets (approximately $100,000 a year), and a
series of needed parking structure annual maintenance projects10. Demand for long term parking spaces
has reduced significantly due to impacts from the pandemic11 and continue to trend in a lower occupancy
caused by new or modified work schedules.
With rate increases and increased revenues, staff continue to be mindful of program expenses as market
conditions fluctuate. The proposed parking program proposes a healthy balance of new improvements
and services, while continuing to carry out customer service, core functions and maintenance of existing
structures. The parking program intends to expand the type of offerings through gateless 12 solutions and
virtual permitting to increase participation in long term parking programs.
On February 21, 2023, Council adopted the Access and Parking Management Plan. The previous plan was
developed in 2002 and in 2011, minor revisions were made to address downtown residential parking
needs. Staff had successfully implemented the strategies outlined in the 2002 Plan and it became apparent
that a new approach was needed to address parking needs in the 21st century.
The newly adopted Plan aligns the parking program goals with those outlined in the General Plan,
Downtown Concept Plan, Active Transportation Plan, and the Climate Action Plan. This Plan provided the
framework for a balanced approach to address parking throughout the community utilizing 35 strategies
to help encourage an economically and culturally vibrant community and downtown while improving the
customer experience.
Revenue & Rates
Detailed revenue projections for this fund are included in the five-year forecast (lines 1-14) on page 53.
In recent years, parking revenue has very much been in flux due to the impacts of COVID-19. It is estimated
that the fund lost and waived $4 million in funding to support economic vitality in the downtown.
Fortunately, based on revenue data for FY 2022-23, the Parking Fund has seen a recovery in realized
revenue.
When preparing revenue estimates for the year, staff developed a cautious approach for a return to
normalcy following the COVID-19 pandemic, lost parking spaces (23) due to the parklet program, and the
impacts of newer bike lanes that reduce metered parking. Staff also took into consideration rate increases
and corresponding revenues, which are effective as of January 1, 2023 that are essential and pivotal to
accessing financial capital to build the Cultural Arts District Parking Structure.
10 Bonding and financial institutions have queried the City on its maintenance and investment in existing structures
and demonstrated progress on deferred maintenance will be required to access financial markets for the Cultural
Arts District Parking Structure.
11 There are less employees working in person and thus the demand for 10-hour passes has significantly reduced.
12 Gateless means that there are no barriers like gate arms or physical parking tags. Parkers register; usually with
their license plate number, right after parking their vehicle. This contrasts with the current situation where a
vehicle pays for parking when leaving the facility.
Budget Document Pg. 50 Page 762 of 829
Section C: Enterprise Funds – Parking Fund
Based upon available information, trends, and financial forecast, the fund is currently positioned to
sustain planned operating and capital expenditures, meet reserve requirements, and cover anticipated
debt payments associated with the Cultural Arts District Parking Structure. This is attributable to the
adoption of additional revenue enhancement strategies and rate increases, additional enforcement staff,
and strategic capital project planning.
Table 19 - Parking Rate Changes
Parking Rate Changes Effective
Current Rate
Effective
July 1, 2023
Effective
July 1, 2025
Parking Meters (Hourly)
Tier 1 (Super Core) $2.00 $4.00 $5.00
Tier 2 (Core) $1.75 $4.00 $5.00
Tier 3 (Outlying Areas) $1.25 $3.00 $3.00
Parking Structures
Hourly/Daily Max $1.50/$6.00 $3.00/$12.00 $3.00/$12.00
Monthly/Quarterly $85/$255 TBD TBD
DROP (Overnight parking for DT residents) $125/$375 TBD TBD
Permits
Residential Parking Permit $20 $25 $25
DT Residential Parking Permit $20 $25 $25
10-Hour Meter Permit $60 TBD TBD
Other
Parking Structure Validations $90 for 100 $100 for 100 $100 for 100
Operating Expenditures
The Parking Fund will continue similar service levels throughout the FY 2023-25 Financial Plan. Throughout
the fiscal year, the Parking Program has been closely monitoring operating expenses to ensure a strong
fund balance to support the Cultural Arts District Parking Structure, which is actively seeking a loan in the
amount of approximately $47 million. A major piece in securing this loan is meeting debt ratio
requirements which considers revenues in relation to operational expenses. To date, the parking fund has
been successful in carrying out core services while managing operating expenses and investing in deferred
maintenance of structures. Like many programs across the city, the Parking Fund has experienced cost
escalation and inflation in the areas of materials and supplies. In addition, the program is anticipated an
increase in expenses around Credit Card Fee’s as more users adopt credit card capable payment methods.
Budget Document Pg. 51 Page 763 of 829
Section C: Enterprise Funds – Parking Fund
Table 20 - Parking Fund Expenditures (Excluding Capital)
SOBCs
The parking fund is recommending one SOBC as part of the 2023-25 Financial Plan to conduct a rate study
analysis with the help of an independent consultant match peak demand with pricing. This study will
evaluate and develop options for matching rates with demand to match operating and maintenance costs
with the anticipated debt service costs for the Cultural Arts District Parking Structure.
Capital Projects
The 5-Year Forecast continues reinvestments in the City’s parking assets with annual funding for the on-
going maintenance and rehabilitation of the three parking structures to extend their useful lives. While
the fund secures debt financing, the program will be focused on maintaining current assets and will be
selective around taking on new capital projects. The new projects for this Financial Plan are proposed to
be as follows:
Gateless Parking Structure Upgrades – Includes $300,000 in FY 2023-24 to invest in new technology to
improve accessibility and operations of the existing parking structures at two additional locations.
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.
HVAC Air Handler Replacement – In FY 2023-24 $230,000 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.
Cultural Arts District Parking Structure -- The Cultural Arts District Parking Structure construction cost is
currently estimated at $47 million with initial groundbreaking beginning in Summer of 2023. Working
capital has support the project to date and $47 million from bond issuance for phase 2 of construction is
underway. 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.
Ongoing Investment in Maintenance -- The program will continue to invest in current assets, primarily
focus on the existing parking structures. Over the next two years, the funds will invest $900,000 in FY
2023-24 and $700,000 in FY 2024-25 in maintenance and improvements at the existing parking structures.
Expenditure by Category 2022-23 Budget 2023-24 Proposed
Budget
2024-25 Proposed
Budget
Salaries and Benefits 1,917,920$ 1,726,514$ 1,800,980$
Contract Services 584,065$ 745,746$ 607,661$
Other Operating Expenditures 401,525$ 438,688$ 422,027$
Utilities 221,933$ 264,172$ 272,861$
Transfers 563,622$ 1,387,281$ 1,421,842$
Debt 851,577$ 852,116$ 850,609$
Parking Fund Total 4,540,643$ 5,414,517$ 5,375,981$
2023-25 Financial Plan
Budget Document Pg. 52 Page 764 of 829
Section C: Enterprise Funds – Parking Fund
Table 21 - Parking Fund Five-Year Forecast
BUDGET PROPOSED PROPOSED PROJECTED PROJECTED PROJECTED
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
REVENUES
1 Service Charges
2 Parking Meter Revenues 2,268,500 4,876,000 4,876,000 5,688,700 5,688,700 5,688,700
3 Parking Structure Collections 1,328,450 3,242,100 3,388,400 3,655,700 3,655,700 3,667,300
4 Long-Term Parking Revenues 844,900 695,300 766,300 768,800 743,500 759,500
5 Lease Revenues 396,800 456,300 456,300 456,300 456,300 456,300
6 Parking In-Lieu Fees 20,600 23,824 23,824 23,824 23,824 23,824
7 Total Services Charges 4,859,300 9,293,524 9,510,824 10,593,324 10,568,024 10,595,624
8 Fines & Forfeitures 793,500 852,100 852,100 852,100 852,100 852,100
9 Interest on Investment 62,000 19,900 11,900 12,100 17,900 22,800
10 Transfer in from GF (ARPA)700,000
11 Other Revenues 787,000 37,800 37,800 54,200 43,300 45,100
12 TOTAL REVENUES 6,501,800 10,203,324 10,412,624 11,511,724 11,481,324 11,515,624
13 Proceeds from Debt Financing 46,315,169
14 TOTAL REVENUES INCL. DEBT
FINANCING 6,501,800 56,518,493 10,412,624 11,511,724 11,481,324 11,515,624
15 EXPENDITURES
16 Staffing 1,917,900 1,726,500 1,801,000 1,882,400 1,967,700 2,059,200
17 Contract Services 690,900 853,800 687,100 701,600 716,400 731,600
18 Other Operating Expenditures 516,700 594,800 615,500 656,800 715,500 781,200
19 General Government (CAP)873,000 1,019,000 1,070,000 1,123,500 1,179,700 1,238,700
20 Operating Transfers Out 235,200 368,233 372,223 376,333 380,566 384,926
21 919 Palm Debt Contribution - Transfer to
GF 438,668 - - - - -
22 Total Operating Expenditures 4,672,400 4,562,300 4,545,800 4,740,600 4,959,900 5,195,600
23 Easement Expenses (one-time) 755,000
24 Capital Improvement Plan Projects 8,340,700 48,416,000 1,382,500 1,631,700 1,702,300 1,107,600
25 TOTAL DEBT SERVICE 851,968 4,195,421 4,117,141 4,038,829 3,960,482 3,882,099
26 TOTAL EXPENDITURES 14,991,668 57,173,721 10,045,441 10,411,129 10,622,682 10,185,299
27 TOTAL SOBCs 1,126,600 150,000 - - - -
28 CHANGES IN FINANCIAL POSITION
29 BEGINNING FUND BALANCE 9,668,600 2,744,873 1,894,258 2,214,188 3,266,114 4,318,040
30 Revenue Over/(Under) Expenses (6,236,668) (805,228) 367,183 1,100,596 1,100,597 1,100,598
31 ENDING BALANCE/WORKING CAPITAL
BEFORE CALPERS ADP 3,431,932 1,939,646 2,261,440 3,314,784 4,366,711 5,418,638
32 Cal PERS Additional Discretionary Pmt 61,896 45,388 47,252 48,670 48,671 48,672
33 ENDING BALANCE/WORKING CAPITAL 3,370,036 1,894,258 2,214,188 3,266,114 4,318,040 5,369,966
34 Policy Reserve Level - 20%882,400 921,400 921,400 955,000 955,000 955,000
35 CalPERS Trust Fund 61,003 61,003 61,003 61,003 61,003 61,003
36 UNRESERVED WORKING CAPITAL 2,426,633 911,855 1,231,785 2,250,111 3,302,037 4,353,963
2023-25 Financial Plan
Budget Document Pg. 53 Page 765 of 829
Section C: Enterprise Funds – Transit Fund
C-4: Transit Fund
Overview
The Transit Fund continues to carry out services while maintaining a healthy and balanced budget. The
budget remains balanced primarily due to federal funding support, which has continued following the
pandemic, and the fact the program relies upon purchased transportation (with its contract operator)
which has been carrying out reduced services over the past two years. With reduced services comes
reduced expenses. While this is the current operating conditions, it is one that staff and our community
are not committed to continue and staff will be working on a rider restoration strategy as part of the
Transit Innovation Study which will come to council in July 2023.
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. With that being said, the program
has seen a more recent uptick in ridership near pre-pandemic levels.
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 beyond baseline services levels, will
require additional operational and financial assessment. During the FY 2023-25 Financial Plan, the Transit
program will issue a Request for Proposals to establish a long-term contract for Transit Operations &
Maintenance (also referred to as purchased transportation). These costs for forecast purposes have been
projected to reflect current contract cost. In addition, staff is working on the transition of the City’s diesel
transit fleet to electric transit buses, with up to six (6) buses on order. This comes with additional capital
costs around electric bus charging infrastructure. Given the high cost of electric buses, the program will
look to recently awarded grants funds to offset costs while staff continue to deliver capital improvement
projects which were deferred during the pandemic.
Ridership is a critical component of the on-going health of the Transit Fund. Necessary to secure State
Transit Development Act (TDA) funds is a requirement that 20 percent of the programs’ operating budget
be generated from local revenue – fares, bus passes, and payment for services provided to Cal Poly. For
FY 2022-23, the fare box percentage was approximately 36%. During FY 2022-23, the Transit Program
experienced a dramatic increase in ridership from the year prior, which is a promising trend. The table
below outlines ridership levels across the past five.
Table 22 - Number of Riders (Year-over-
year)
General
Ridership Cal Poly Total
1 Fiscal Year 2018-19 342,000 609,000 951,000
2 Fiscal Year 2019-20 278,000 427,000 705,000
3 Fiscal Year 2020-21 142,000 37,000 179,000
4 Fiscal Year 2021-22 259,000 269,000 528,000
5 Fiscal Year 2022-23 (July – February) 121,078 205,471 326,549
The Transit Program is currently conducting the Transit Innovations Study which is intended to address
and consider improvements to transit operations in several areas. Following the completion of the study,
the Transit program will determine the feasibility and impacts of implementation, with the input from the
community, city leadership and the City Council.
Budget Document Pg. 54 Page 766 of 829
Section C: Enterprise Funds – Transit Fund
Revenue & Rates
Detailed revenue projections for this fund are included in the five-year forecast (lines 1-15) on page 57.
The transit program will continue to operate primarily supported by State and Federal Funds, which make
up approximately 90% of revenues. The Fund forecast estimates approximately $240,000 in farebox
revenue in the form of ridership, and $750,000 in revenue for services provided to Cal Poly. The program
is expected to see just over $8 million in ARPA Discretionary funds over the Financial Plan, which was
secured in FY 2021-22.
Federal 5307 Transit funds make up approximately 30% of the total operating revenues for the Transit
Fund and are projected to continue to slightly increase during this two-year Financial Plan. State Transit
Development Act (TDA) funds make up approximately 23% of revenue and are projected to have a modest
increase. Local revenue from cash paid fares, pass sales, and the anticipated new Cal Poly Service
Agreement account for 10% of the total revenues. As mentioned prior, the ARPA Discretionary funds make
up approximately 35% of total revenues over the next two fiscal years.
Operating Expenditures
As mentioned, reduced usage of public transit during the pandemic did and has resulted in lowered
expenditures in recent years. It is still uncertain what transit ridership will look like as we return to
“normal” following the pandemic. The Transit Innovation Study will set objective and quantifiable
passenger goals for various routes and modes to monitor how effective investments are in meeting our
long term transit objectives.
Nonetheless, given the purchased transportation model expenditures for the Operations and
Maintenance contract are anticipated to increase to align with revenues and transit demands. Overall,
operating expenditures have remained relatively stable but have considered an increased cost in
maintenance with aging buses, inflation, and fuel prices. The unknown factor will be integrated E-Buses
into the fleet and gaining some experience and costs for integrating this new vehicle fuel type into the
public transit fleet mix. Everything indicates that E-Buses should be cheaper to operate and more analysis
needs to be done before long term projections and conclusions can be reached.
As the program continues to evaluate its operating agreement with Cal Poly, the service delivery and
associated costs have resulted in an annual agreement amount of $750,000 in FY 2023-24 and an
estimated amount of $800,000 in FY 2024-25. While both agencies desire a long-term agreement to
service Cal Poly’s transit needs many unknowns exists concerning recovery from the pandemic and how
quickly transit riders return to transit. Part of that conversation is also focused on the capital investment
needed to “green the fleet” for Transit and the costs of that which must be shared amongst all users.
Table 23 - Transit Fund Operating Expenditures (Excludes Capital)
Transit Fund: Expenditure by
Category 2022-23 Budget 2023-24 Proposed
Budget
2024-25 Proposed
Budget
Salaries and Benefits 306,115$ 353,303$ 371,319$
Contract Services 2,895,950$ 963,803$ 1,011,993$
Other Operating Expenditures 684,513$ 3,809,310$ 3,853,110$
Transfers 365,544$ 463,491$ 477,396$
Transit Fund Total 4,252,122$ 5,589,907$ 5,713,818$
2023-25 Financial Plan
Budget Document Pg. 55 Page 767 of 829
Section C: Enterprise Funds – Transit Fund
SOBCs
The program has no requests for SOBCs as part of the FY 2023-25 Financial Plan. The program's operating
budget is primarily made up of staffing, contract services, fuel, and maintenance costs which are
increasing consistently with various factors such as cost of living adjustments and general cost of goods
and services.
Capital Projects
The 5-Year Forecast continues to focus on conversion of the City’s bus system to electric. While the fund
continues to secure state and federal funds, the program will be focused on EV Bus procurement and the
necessary infrastructure to support the electric fleet.
Bus Replacement with EV -- The program will continue to procure and put EV buses into service. Over the
next two years, the funds will invest $2,701,500 in FY 2023-24 and $2,226,000 in FY 2024-25 in bus
procurement.
Transit Facility EV Charging Infrastructure -- To support the roll out of electric buses, over the next two
years, the funds will invest $1,805,400 in FY 2023-24 and $1,445,406 in FY 2024-25 in EV bus
infrastructure.
Bus Shelter Replacements -- The program allocates $90,000 annually for the replacement of bus shelters
throughout the City.
Budget Document Pg. 56 Page 768 of 829
Section C: Enterprise Funds – Transit Fund
Table 24 - Transit Fund Five-Year Forecast
Budget
2022-23
Proposed
2023-24
Proposed
2024-25
Projected
2025-26
Projected
2026-27
Projected
2027-28
Revenue
1 Federal - 5307 Operating 1,694,054 1,727,935 1,762,494
2 Federal -5307 Preventative Maintenance - 210,765 214,980 219,280
3 Federal - 5307 Capital 3,370,709 3,471,830 3,575,985 3,647,504 3,720,455 3,794,864
4
State TDA (Transportation Development
Act) STA 430,628 443,547 456,853 470,559 484,676 499,216
5 State TDA LTF 2,647,859 2,727,295 2,809,114 2,893,387 2,980,189 3,069,594
6 State - APCD (Air Pollution Control District)500,000 - - - - -
7 PG&E Grant 142,000 - - - - -
8 Farebox Revenue 200,000 240,000 250,000 260,000 260,000 260,000
9 Cal Poly Agreement 650,000 750,000 800,000 824,000 848,720 874,182
10 State - SB1 8,722 8,722 8,722 8,722 8,722 8,722
11
State - LCTOP (Low Carbon Transit Ops
Program)344,183 - - - - -
12 ARPA Discretionary 4,100,000 4,100,000 4,100,000 - - -
13 FTA 5339 B Discretionary 4,799,979
14 Interest on Investment 13,313 13,579 13,851 14,128 14,410 14,699
15 TOTAL REVENUES $ 17,207,393 $ 11,754,973 $12,014,524 $ 10,023,119 $ 10,260,087 $ 10,503,050
16 Expenditures & Obligations
17 Staffing $298,896 353,303 371,319 389,885 409,380 429,849
18 Contract Services 2,895,950 3,078,597 3,078,597 3,170,955 3,266,084 3,364,066
19 Fuel 320,000 350,000 385,000 385,000 385,000 385,000
20 Maintenance 240,000 255,000 265,000 283,550 303,399 324,636
21 Other Operating Expenditures 124,513 1,089,516 1,136,506 1,193,331 1,252,997 1,315,647
22 Cost Allocation Transfer to GF 365,544 463,491 477,396 486,944 496,683 506,616
23 Capital 10,741,398 4,596,900 3,786,406 4,249,910 90,000 2,649,851
24 TOTAL Expenditures & Obligations: $ 14,986,301 $ 10,186,807 $ 9,500,224 $ 10,159,575 $ 6,203,542 $ 8,975,665
25 CHANGES IN FINANCIAL POSITION
26 Beginning Fund Balance $ 2,538,372 $ 4,746,909 $ 6,302,520 $ 8,804,266 $ 8,655,256 $ 12,699,246
27 Revenue Over/(Under) Expenses 2,221,092 $ 1,568,166 $ 2,514,301 $ (136,456) $ 4,056,545 $ 1,527,384
28 Ending Fund Balance before CalPERS $ 4,759,464 $ 6,315,075 $ 8,816,821 $ 8,667,811 $ 12,711,801 $ 14,226,630
29
CalPERS Additional Discretionary
Payment 12,555.00$ 12,555.00$ 12,555.00$ 12,555.00$ 12,555.00$ 12,555.00$
30 Ending Fund Balance $ 4,746,909 $ 6,302,520 $ 8,804,266 $ 8,655,256 $ 12,699,246 $ 14,214,075
31 Policy Reserve Level - 20%848,981$ 1,117,981$ 1,142,764$ 1,181,933$ 1,222,708$ 1,265,163$
32 Undesignated Fund Balance $ 3,897,929 $ 5,184,539 $ 7,661,503 $ 7,473,323 $ 11,476,537 $ 12,948,912
2023-25 Financial Plan
Budget Document Pg. 57 Page 769 of 829
Section D: Local Revenue Measure
Section D: Local Revenue Measure
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.
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 30, 2023, this report was presented to the REOC and they unanimously support the
proposed 2023-25 Local Revenue Measure Expenditures presented in this report.
Community Input
There has been significant community engagement leading up to the development of the 2023 -25
Financial Plan. Prior to the bi-annual Community Forum, 1,300 individual responses (or 65 hours of public
comment) were received for the Community Priority survey. Additionally, over 150 members of the
community attended the Community Forum on January 26, 2023 (which also served as the Annual Citizen
Oversight Meeting).
Spending Priorities
The Local Revenue Measure is a 1.5 percent local sales tax approved by City voters in November 2020,
which was previously a .5 percent local sales tax approved by City voters in November 2006 and renewed
in 2014. It helps protect and maintain services and public infrastructure identified by the community:
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
Capital Projects &
Delivery
77%
Operating
Programs
23%
FIGURE D-5: 2023-25 LRM
Recommended Expenditure
Allocation Split
Budget Document Pg. 58 Page 770 of 829
Section D: Local Revenue Measure
Revenue
The current revenue projections for the Local Revenue Measure for the 2023-25 Financial Plan are as
follows:
Table 25 - 2023-25 LRM Revenue Projections
FY 2023-24 $30,262,098
FY 2024-25 $30,897,440
Total $61,159,700
These revenue amounts are based on the latest forecast from HDL which the City contracts with to analyze
regional and local trends and translate these into revenue forecasts.
Recommended Projects and Services
Because the City prepares a five-year CIP which is revised and adopted every two years, all the projects
listed in Table 26 below have been identified in previous reports to Council and the REOC. Given the
cost escalation of existing projects and limited available funding, no new projects were considered for
2023-25 with the exception of emergency storm damage related projects.
Projects and Services were evaluated using both the LRM priorities and the Major City Goals established
by the City Council to align funding for projects and services with revenue projections and recently
approved ARP funding. Each project and service were reviewed by the CIP Committee and the Financial
Plan Steering Committee comprised of department heads and staff from multiple City departments. The
identified projects and services were then reviewed for final recommendations by the City Manager.
Table 26 - Overview of Proposed 2023-25 LRM Budget. See next page for detailed expenditure list.
*Includes allocation to Capital Reserve.
2023-25 LRM Expenditures by Priority
2023-24
Recommended
Budget
2024-25
Recommended
Budget
% of total
(both years
combined)
1 Street Maintenance and Transportation (includes
bicycle and pedestrian improvements)10,252,816$ 9,973,701$ 33%
2 Other Services and Projects*5,230,742$ 5,215,060$ 17%
3 Community Safety and Emergency Preparedness 5,919,118$ 3,455,404$ 15%
4 Youth/Senior Services and Recreation Facilities 1,615,882$ 4,975,719$ 11%
5 Creek and Flood Protection 3,143,150$ 1,692,224$ 8%
6 Open Space/Natural Areas Preservation and
Maintenance 1,587,865$ 2,304,027$ 6%
7 Safe and Clean Public Areas 765,767$ 1,510,109$ 4%
8 Address Homelessness 796,897$ 809,912$ 3%
9 Protect Financial Stability 515,519$ 536,284$ 2%
10 Economic Development and Business Retention 425,000$ 425,000$ 1%
11 Total 30,252,756$ 30,897,440$ 100%
Budget Document Pg. 59 Page 771 of 829
Line ID2023‐25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority
2023‐24
Proposed
Budget
2024‐25
Proposed
Budget
1 Address Homelessness 796,897$ 809,912$
2 Operating
3 CAT Team Social Worker ‐ Contract through TMH 116,188$ 116,188$
4 Homelessness Response Manager (FTE=1)142,141$ 150,958$
5 25% Expansion of 40 Prado Beds ‐ Proportions City share to County contribution 63,826$ 63,826$
6 Housing/Homelessness Admin Specialist (FTE=1) 100,313$ 102,669$
7 Mobile Crisis Unit ( Social Worker and Other Operating Expenditures) 181,025$ 181,025$
8 Mobile Crisis Unit Paramedic/Firefighter (FTE=1)113,404$ 115,247$
9 Parks and Open Space Environmental Clean‐Up Resources 80,000$ 80,000$
10 Community Safety and Emergency Preparedness 5,919,118$ 3,455,404$
11 Capital
12 Fire Hydrants: Fire Hydrants 55,000$ 55,000$
13 Fire Station 3&4 Remodel Space Study and Design 200,000$
14 Fleet Replacement: Admin: City Hall Generator (GEN‐9712) 9,484$
15 Fleet Replacement: Police: Police Motorcycles ‐$20,000$
16 Fleet Replacement: Police: Police Patrol Hybrid SUV (2 Vehicles per Year)) ‐$70,000$
17 Fleet Replacement: Public Works: Supplies, Software and Tools 100,000$
18 IT Replacement: Body Worn Cameras, Video Storage and Interview Rooms 50,000$ 50,000$
19 IT Replacement: Dispatch Radio Consoles 150,000$ ‐$
20 IT Replacement: ECC Equipment Replacement 35,000$ 35,000$
21 IT Replacement: Public Safety MDC and In‐Car Video Replacement 250,000$
22 IT Replacement: Public Surveillance Cameras 28,915$ ‐$
23 IT Replacement: Radios, Mobiles and stations not replaced ‐ PW Only ‐$55,000$
24 IT Replacement: Uninterruptible Power Supplies (UPS’s Servers and Storage)‐$42,172$
25 Major Facility Maintenance: Facility Roll Up Door Replacements 15,000$ 20,000$
26 Major Facility Maintenance: Fire Station #1 Administration Bldg Roof 60,000$
27 Major Facility Maintenance: Fire Station #4 ‐ Exterior Paint 25,000$
28 Major Facility Maintenance: Police Department Hydronic System Piping Repl 15,000$
29 Major Facility Replacements: Public Safety Center 350,000$
30 Parking Lot Maintenance: Fire Station 2 50,000$
31 Storm Response and Recovery**2,750,000$
32 Operating
33 Police Officer (FTE=3)645,199$ 667,140$
34 Police Sergeant (FTE=1)261,063$ 273,419$
35 Community Services Officers (FTE=4)424,551$ 445,058$
36 Emergency Manager (FTE=1)172,488$ 181,878$
37 Farmer's Market Supplemental Staffing Support 16,000$ 16,000$
38 Fire Equipment Replacement (PPE, AED, etc.)173,000$ 173,000$
39 Fire Inspection Management Software (Mobile Eyes) 11,150$ 11,150$
40 Fire Intern Program 23,011$ 23,586$
41 Fire Technical Rescue Team Expansion 10,000$ 10,000$
42 Fire Training/Safety Captain (FTE=1)282,436$ 285,253$
43 Firefighter (FTE=2)302,305$ 318,264$
44 Open Space and Creeks Hazardous Tree Removals 20,000$ 20,000$
45 PoliceEquipment Replacement and Supplies 47,000$ 47,000$
46 Public Safety Customer Engagement 12,000$ 12,000$
47 Creek and Flood Protection 3,143,150$ 1,692,224$
48 Capital
49 Fleet Replacement: Public Works: Stormwater Hydrocleaner (0859)630,000$
50 Storm Drain System Replacement: Drainage Infrastructure Replacement 1,800,000$ 950,000$
51 Storm Drain System Replacement: Trash Capture 75,000$ 75,000$
Table D-1: LRM Expenditures
Budget Document Pg. 60 Page 772 of 829
Line ID2023‐25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority
2023‐24
Proposed
Budget
2024‐25
Proposed
Budget
52 Operating
53 Environmental Compliance Inspector (FTE=1)124,748$ 132,803$
54 Environmetnal Programs Manager (FTE=0.4)70,689$ 73,045$
55 GIS Specialist (FTE=0.25)30,232$ 32,243$
56 Laboratory Analyst (FTE=0.1)15,057$ 16,011$
57 Sweeper Operator (FTE=1)104,076$ 106,655$
58 Wastewater Collection Supervisor (FTE=0.25)40,508$ 43,091$
59 Wastewater Collection System Operator (FTE=2)252,840$ 263,375$
60 Economic Development and Business Retention 425,000$ 425,000$
61 Capital
62 Annual Public Art Maintenance and Projects: Asset Maintenance 30,000$ 30,000$
63 Annual Public Art Maintenance and Projects: Small Public Art Projects 100,000$ 100,000$
64 Annual Public Art Maintenance and Projects: Utility Box Beautify 20,000$ 20,000$
65 Banner Arms, Bench Arm Rests, Signs: Banner Arms, Bench Arm Rests, Signs 25,000$ 25,000$
66 Roundabout Public Art Installations: Roundabout Public Art Installations 100,000$ 100,000$
67 Operating
68 Holiday Activation Support in Downtown for Lighting and Other Features 150,000$ 150,000$
69 Open Space/Natural Areas Preservation and Maintenance 1,587,865$ 2,304,027$
70 Capital
71 Laguna Lake Dredging and Sediment Management Project Implementation 900,000$
72 Open Space Acquisition: Open Space Acquisition 175,000$ 150,000$
73 Open Space Maintenance: General Open Space Maintenance 120,000$ 120,000$
74 Open Space Maintenance: Open Space Fencing 50,000$ 50,000$
75 Pismo Street Retaining Wall ‐ Storm Response : Wall Adjacent to Vista Grande**200,000$
76 Urban Forest Maintenance: Urban Forest Maintenance 420,000$ 440,000$
77 Operating
78 Ranger Maintenance Worker (FTE=4)358,135$ 372,845$
79 Fuel Reduction Crew 65,000$ 65,000$
80 Open Space Vegetation Management and Fuel Reduction 25,000$ 25,000$
81 Parks Contract Services Funding 40,000$ 40,000$
82 Susatinability & Natural Resources Analyst (FTE=1)134,730$ 141,181$
83 Other Services and Projects 5,230,742$ 5,215,060$
84 Capital
85 Allocation to CIP Reserve (Per policy)4,000,000$ 4,000,000$
86 Electric Vehicle Charging Station at Various Facilities: Various City Facilities 75,000$ 100,000$
87 Lead by Example: Swim Center Heat Pump 25,000$
88 Major Facility Maintenance: ADA Transition Plan Implementation 15,000$ 15,000$
89 Major Facility Maintenance: Energy Management Controls Upgrade 110,000$
90 Major Facility Maintenance: IT Room Heat Pump Replacements 12,000$ 15,000$
91 Capital Projects Manager I/II/III (FTE=1)*137,609$ 140,792$
92 CIP Manager (FTE=1)*170,551$ 179,930$
93 Engineering Inspector I/II/III/IV (FTE=1)*153,715$ 160,439$
94 Public Works Contract Coordinator (FTE=2)*239,042$ 249,432$
95 Supervising Civil Engineer (FTE=1)*176,325$ 187,967$
96 Operating
97 Centralized Resident Inquiry Platform (GoGov)40,000$ 40,000$
98 City Fleet Vehicle Repairs 20,000$ 20,000$
99 Funding for Increased Cost of Facilities Maintenance Materials and Supplies 30,000$ 30,000$
100 Increased Contract Funds for Specialized Mechanic Services 51,500$ 51,500$
101 Protect Financial Stability 515,519$ 536,284$
102 Operating
Table D-1: LRM Expenditures
Budget Document Pg. 61 Page 773 of 829
Line ID2023‐25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority
2023‐24
Proposed
Budget
2024‐25
Proposed
Budget
103 Accounting Assistant (FTE=1)88,474$ 94,056$
104 Application Systems Specialist (1 FTE) (FTE=1) 154,154$ 157,690$
105 Financial Specialist ‐ Accounting (FTE=1)106,039$ 112,678$
106 Fire Injury Reduction Program 18,000$ 18,000$
107 Technology Project Manager (FTE=1)148,852$ 153,861$
108 Safe and Clean Public Areas 765,767$ 1,510,109$
109 Capital
110 Fleet Replacement: Admin: Downtown Cleaning Equipment 125,000$
111 IT Replacement: Public Surveillance Citywide Cameras Storage 28,915$
112 IT Replacement: Security Video System Replacement (Camera&Software) 55,500$ ‐$
113 Mission Plaza Concept Plan: Phase 2 ‐ Plaza Area Between Chorro and Broad 75,670$ 370,028$
114 Mission Plaza Concept Plan: Phase 3 ‐ Broad Street Dog‐Leg Improvements 100,000$
115 Park Major Maintenance & Repairs: Mission Plaza Railing Upgrade 35,000$ 35,000$
116 Sidewalk Replacement and Installation: Curb Ramps and Sidewalks 50,000$ 100,000$
117 Sidewalk Replacement and Installation: Street Tree Sidewalks 50,000$ 50,000$
118 SLO Creek Walk Maintenance ‐ Lighting, Signage, Irrigation, Plants 250,000$
119 Street Lights ‐ Annual Asset Maintenance: Pathway Lighting Various Locations 75,000$ 75,000$
120 Operating
121 Downtown Maintainance Coordinator (FTE=1)115,096$ 117,559$
122 Facilities Contract Services Funding 25,000$ 25,000$
123 Landscape Maintenance 70,000$ 70,000$
124 Mission Plaza & Downtown Maintenance 77,750$ 77,750$
125 Parks Maintenance Beautification Gardener (FTE=1)107,836$ 114,772$
126 Street Maintenance and Transportation (includes bicycle and pedestrian) 10,252,816$ 9,973,701$
127 Capital
128 ATP Implementation: Active Transporation Plan Tier 1 Network Implementation 50,000$ 50,000$
129 ATP Implementation: Area Sealing Projects Complete Street Components 285,000$ 200,000$
130 ATP Implementation: Bicycle Facility Improvements ‐$100,000$
131 ATP Implementation: Pedestrian Facility Improvements 55,000$ 110,000$
132 ATP ‐ Foothill Boulevard Complete Street Project 200,000$
133 ATP ‐ Higuera Complete Street Project 300,000$ 750,000$
134 ATP ‐ Orcutt Road Railroad Crossing Upgrades 200,000$ ‐$
135 Bridge Maintenance: Bridge Maintenance 150,000$ 200,000$
136 California & Taft Roundabout: California & Taft Roundabout 500,000$
137 Downtown Renewal: Broad Street ‐ West Side ‐ Higuera to Marsh 200,000$
138 Fleet Replacement: Public Works: Streets Maint HD Air Brake Trailer (9711) 55,000$
139 Fleet Replacement: Public Works: Streets Maintenance Trailers (9231, 0006) 25,000$
140 Mid‐Higuera Bypass: Mid‐Higuera Bypass 1,250,000$ 2,850,000$
141 Neighborhood Traffic Improvements: Neighborhood Traffic Improvements 45,000$ 30,000$
142 Pedestrian and Bicycle Pathway Maintenance: Andrews and Johnson Bike Path 10,000$
143 Pedand Bicycle Pathway Maintenance: Various Locations 125,000$ 150,000$
144 Street Reconstruction & Resurfacing: Monterey ‐ CA to Santa Rosa 1,150,000$
145 Street Reconstruction & Resurfacing: Morro Mid‐Block 200,000$
146 Street Reconstruction & Resurfacing: Palm ‐ Pepper to Santa Rosa 700,000$
147 Street Reconstruction & Resurfacing: Pavement Management 3,729,000$ 2,908,000$
148 Street Reconstruction & Resurfacing: Paving Area Curb Ramps 1,000,000$
149 Traffic Signs & Striping Maintenance: Traffic Signs & Striping Maintenance 75,000$ 75,000$
150 Transportation Safety & Operations: Vision Zero Program Implementation 140,000$ 120,000$
151 Active Transportation Manager (FTE=1)* 162,514$ 170,611$
152 CIP Project Engineering Inspector (FTE=1)*136,027$ 141,947$
153 Transportation Planning Engineer (FTE=1)*127,926$ 133,561$
Table D-1: LRM Expenditures
Budget Document Pg. 62 Page 774 of 829
Line ID2023‐25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority
2023‐24
Proposed
Budget
2024‐25
Proposed
Budget
154 Operating
155 Increased Asphalt and Concrete Budget 60,000$ 60,000$
156 Increased Budget for Signals and Street Light Equipment and Electricity 25,000$ 25,000$
157 Signal & Streetlight Technician (FTE=1)126,759$ 129,335$
158 Streets Maintenance Operator (FTE=4)460,589$ 480,246$
159 Youth/Senior Services and Recreation Facilities 1,615,882$ 4,975,719$
160 Capital
161 Development Related Park Improvements: Orcutt Area ‐ Neighborhood Park 3,237,138$
162 Fleet Replacement: Public Works: Parks Maintenance 3/4 ton Pickup 140,000$
163 Fleet Replacement: Public Works: Parks Tractor attachments 75,000$
164 Fleet Replacement: Public Works: PW Maintenance Supervisor Vehicle 50,000$
165 Laguna Lake Golf Course Maintenance: Laguna Lake Golf Course Maintenance 20,000$ 20,000$
166 Major Facility Maintenance: Hydration Stations 25,000$ 25,000$
167 Major Facility Maintenance: Jack House Roof and Widows Walk Railing 250,000$
168 Major Facility Maint: Ludwick and Senior Center ‐ Exterior Paint and Shell Rehab 250,000$
169 Major Facility Maintenance: Swim Center Furnaces (2 Furnaces)40,000$
170 Major Facility Maintenance: Swim Center Pool Water Chemical Regulator 20,000$
171 Major Facility Maintenance: Therapy Pool Shade Structure Material Repacement 33,178$
172 Park Major Maintenance & Repairs: ADA Transition Plan Implementation 20,000$
173 Park Major Maintenance & Repairs: Bench & Table Replacements 15,000$ 15,000$
174 Park Major Maintenance & Repairs: Irrigation Mainline Leak Repair 35,000$ 35,000$
175 Park Major Maintenance & Repairs: Jack House Arbor 175,000$
176 Park Major Maintenance: Landscape Controller System Upgrade to Calsense 150,000$
177 Park Major Maintenance: Madonna Road Landscaping and Irrigation Replacement 50,000$
178 Park Major Maintenance & Repairs: Parks Play Surfacing 80,000$ 60,000$
179 Park Major Maintenance & Repairs: Santa Rosa Park Monument Sign 20,000$
180 Park Major Maintenance & Repairs: Sinsheimer Stadium Lighting Addition 75,000$
181 Park Major Maintenance & Repairs: Water Stations and Supply Lines 30,000$ 30,000$
182 Parking Lot Maintenance: Johnson Park 50,000$
183 Parking Lot Maintenance: Ludwick Community Center 10,000$
184 Parking Lot Maintenance: Meadow Park 175,000$
185 Parking Lot Maintenance: Minor Repair of City Parking Lots 40,000$ 40,000$
186 Parking Lot Maintenance: Mitchell Park and SLO Senior Citizens Center 10,000$ 35,000$
187 Parking Lot Maintenance: Throop Park 10,000$ 80,000$
188 Operating
189 Parks Maint. Specialist (FTE=2)218,904$ 232,457$
190 Swim Center Supplies (pool chemicals, etc.)25,000$ 25,000$
191 Volunteer Coordinator (FTE=1)93,457$ 99,598$
192 Youth Services Specialists (FTE=2)228,521$ 243,348$
193 Total 30,252,756$ 30,897,440$
* These positions are budgeted within the operating programs, but are categorized as "Capital" here because they have a direct tie to
the delivery of Capital Projects
** Staff is seeking FEMA reimbursement for emergency storm repair projects. Staff anticipate the need for funding to support storm
related infrastructure repair if FEMA reimbursement is not received. Any unused budget and reimbursement revenue that the City
receives will replenish the capital reserve or support future capital projects.
Table D-1: LRM Expenditures
Budget Document Pg. 63 Page 775 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
Section E: Capital Improvement Plan
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 primarily set forth in the City’s fiscal policies. 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 navigate economic conditions which
have proven challenging on resource availability for capital projects. Cost escalation and supply chain
delays had impacted the City’s ability to deliver capital projects within budget and within estimated
timelines. As such, staff, including those who support the CIP, continue to wear multiple hats. While the
CIP budget has tripled due to the voters’ passage of Measure G20, the City’s local sales tax measure, the
increased revenues have proven invaluable to support variable market conditions in recent years.
On top of that, the City is in the early estimate stages of evaluating and estimating the long-term impacts
of the winter storms and rainfall which has had extreme impacts on the City’s infrastructure system. This
includes storm drains, creek protection, the water and wastewater systems, and roadways among other
capital assets. What this means is that there is continued uncertainty, but alongside that is continued
effort by staff to identify additional funds in the form of reimbursement to continue to meet the significant
needs of our community in providing it vital and meaningful infrastructure projects.
Active and Ongoing Capital Projects
Prior to presenting the CIP for FY 2023-25, it is important to note that capital projects often span over
multiple years and even across financial plans. Staff continuously evaluate the CIP to determine which
projects are best suited for activity depending on the resources available (people and funding) and in
some instances the time of the year for construction activities. The table below presents some of the
active and ongoing capital projects which were identified for activity during Fiscal Year 2022-23.
Budget Document Pg. 64 Page 776 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
Table 27 - Active and Ongoing Capital Projects
ID#Fund Project Current Status
1 Water/Grant Groundwater Contamination Characterization Project Construction Ongoing
2 Sewer Calle Joaquin Lift Station Replacement Construction Ongoing
3 Sewer Wastewater Resource Recovery Facility Upgrade Construction Ongoing
4 General Santa Rosa at Montery Intersection Improvements Construction Ongoing
5 General City Hall Meeting Room Tenant Improvements Construction Ongoing
6 Parking
Cultural Arts District Parking Structure
Phase 1A - Dry Utility Undergrounding
Phase 1B - Site Preparation
Phase 2 - Structure Construction
Construction Ongoing /
Award Phase / Design
7 Water Water Treatment Plant Generator Improvement
Project at Facility 98 Construction Ongoing
8 General Railroad Safety Trail Fencing Award Phase
9 Parking 842 Palm Parking Structure Gateless Entry Award Phase
10 Transit/Grant Transit Facility Electric Vehicle Charging Infrastructure Award Phase
11 General/Grant North Chorro Neighborhood Greenway Award Phase
12 General Tank Farm and Orcutt Roundabout Off-site Mitigation
Planting Award Phase
13 General 2022 Pedestrian Crossing Improvements Award Phase
14 General/Quimby North Broad Neighborhood Park Design
15 General Cheng Park Revitalization Design
16 General/Grant CDBG Curb Ramps 2022 Design
17 Parking 919/842 Palm Parking Structure Maintenance Design
18 General City Hall Landing Repair Design
19 Quimby/Grant Mitchell Park Improvements Design
20 General Bob Jones Trail and RRST Solar Lighting Design
Ongoing Capital Projects (Fiscal Year 2022-23)
Budget Document Pg. 65 Page 777 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
Types of CIP Projects and Framework Used to Develop Recommendations
To assist the City Manager in developing the recommended CIP for the 2023 -25 Financial Plan, a
designated CIP Review Committee comprised of the Assistant City Manager, Deputy City Manager,
Finance Director, Police Chief, Utilities Director, Parks and Recreation Director, and Public Works Director,
among other staff, evaluated project requests across the city. Based on prior Council direction and public
input regarding the importance of maintaining existing infrastructure, City staff positions all project
requests in the following three categories. It is common in developing a CIP for a majority of the focus to
be placed on Asset Replacement and Asset Maintenance, rather than on New Assets. It is critical for the
City to continue to invest in repair or replacement of existing infrastructure that is attributed to the quality
of life for residents.
Figure 6 - Capital Project Types
Budget Document Pg. 66 Page 778 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
Key Questions the CIP Committee Asks About Projects
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
constructing 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.
Does project support
economic
sustainability of the
community and
organization?
Does project address a
critical community
health or safety need?
Does project
make good on
ongoing
commitments?
Does project address
core infrastructure
needs?
Does project provide a
visible and measurable
community benefit?
Does project
align with Major
City Goals?
Does project
address a Measure
G priority?
Does project have
a positive impact
on ongoing
operations?
Figure 7 - Capital Project Review Process
Budget Document Pg. 67 Page 779 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
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. While revenues have grown, city staff have also experienced major increases in
project costs and budgets in recent years.
*Includes first full year of G-20 revenue and one-time ARPA allocation
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, there is still the need for additional engineering and/or project delivery staffing resources. Staff
continue to analyze the project staff required to deliver the projects over the two -year and the five- year
time horizon. While City staffing levels are adequate to deliver the current capital program (2021-23),
additional funding from the Local Revenue Measure (LRM), State and Federal programs, and increased
Parking, Water and Sewer projects will impact the availability of current staff. Since the last Financial Plan,
staff has worked with a consultant group to best determine the most appropriate organizational structure,
job types, functions and methods to better align the City’s Capital Improvement Plan with best practice.
The flow chart below outlines the various phases of a given CIP project. While not all projects enter and
exit each phase, this provides a general overview of the necessary efforts that lead from the identification
of a project to completion.
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Graph C-1: General Fund Capital Expenditures
Budget Document Pg. 68 Page 780 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
Figure 8 - Project Life Cycle
Budget Document Pg. 69 Page 781 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
CIP Project Categories
The City categorizes CIP projects into broad functional areas that represent the support for fundamental
local government activities. Projects in support of these categories extend the life of existing City assets
such as streets, bike and pedestrian pathways, parks and play equipment, bridges, water and sewer
infrastructure, trees, open spaces and much more. In addition to maintenance of existing a ssets, there
are some aged assets, such as a building or city facilities, that may need replacement or substantial
remodel. Less frequent but more significant is design and construction of new projects or new assets
based on community and Council priorities that enhance the overall quality of life in the City.
Table 28 - Project Allocations by CIP Type
Figure 9 - CIP Project Categories
ID Project by Type 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Total 5-Year Total
1 Annual Asset Maintenance 24,903,500$ 20,867,179$ 26,982,800$ 23,841,102$ 33,492,197$ 45,770,679$ 130,086,778$
2 Asset Replacement 25,963,872$ 29,254,434$ 27,081,504$ 13,782,000$ 17,471,351$ 55,218,306$ 113,553,161$
3 New Asset 60,951,260$ 13,028,642$ 101,753,000$ 13,172,000$ 7,702,000$ 73,979,902$ 196,606,902$
4 CIP Reserve 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 8,000,000$ 20,000,000$
5 Grand Total 115,818,632$ 67,150,255$ 159,817,304$ 54,795,102$ 62,665,548$ 182,968,887$ 460,246,841$
Budget Document Pg. 70 Page 782 of 829
Section E : Capital Improvement Plan – 2023-25 Financial Plan
Funds and Funding Sources
The section below provides an overview of the various funding sources and structures that support the
capital improvement plan, including special funds, enterprise funds and more traditional government
funds.
Budget Document Pg. 71 Page 783 of 829
Section E: Capital Improvement Plan
Budget Document Pg. 72 Page 784 of 829
Section E: Capital Improvement Plan
Budget Document Pg. 73 Page 785 of 829
Section E: Capital Improvement Plan
Budget Document Pg. 74 Page 786 of 829
Section E: Capital Improvement Plan
Grants and Debt
The City’s CIP program, while largely comprised of funds arising from local revenues, service fees, and
impact fees, also includes funding from grants and for larger projects include debt issuance (such as the
Cultural Arts District Parking Structure). The City typically receives grant funds from State or Federal
agencies that either offset a burdensome cost for infrastructure or service needs, advance a positive
environmental or ecological improvement, or stimulate the economy. Some grants the City receives are
based upon regulation or a 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 2023-25 Financial Plan which
is often required by the granting agencies. Grant activity across the City is primarily seen in the Transit
program, as well as the improvement of the City’s transportation network.
Table 29 - Grant Funded Capital Projects (Not all grants secured)
The City typical will use a pay-as-you go approach; however, debt issuance may occur with costly projects
that require long term debt payments, have a long-term useful life, and which will benefit residents and
tax-payers upon completion and in the future. For these reasons, projects where debt financing is a likely
approach include the Cultural Arts District Parking Structure and the Prado Road Interchange, which are
outlined below. Staff consistently evaluate resource and funding capacity, keeping in mind the ability to
debt finance projects as needed.
Table 30 - Debt Funded Projects
ID Grants By Project 2023-24 2024-25 2025-26 2026-27 2027-28
1 DWR Grant 6,079,000$
2 Mid-Higuera Bypass 6,079,000$
3 Federal HBP Grant 6,000,000$
4 Prado Road Bridge & Road Widening 6,000,000$
5 SLOCOG Grant 1,500,000$ 6,000,000$
6 ATP - Higuera Complete Street Project 1,000,000$
7 ATP - South/King Pedestrian Hybrid Beacon 500,000$
8 Prado Road Interchange 6,000,000$
9 State or Federal Grant 11,547,900$ 5,926,406$ 6,649,910$ 230,000$ 4,149,851$
10 ATP - Higuera Complete Street Project 6,951,000$
11 Bus Replacements with EV 2,701,500$ 2,226,000$ 3,055,110$ 2,145,851$
12 Transit Facility EV Charging Infrastructure 1,805,400$ 1,445,406$ 604,800$ 414,000$
13 Bus Shelter Replacements 90,000$ 90,000$ 90,000$ 90,000$ 90,000$
14 Prado Road Bridge & Road Widening 2,065,000$
15 ATP - Foothill Blvd Complete Street Project 2,400,000$
16 Lead by Example 75,000$
17 Parking Lot Maintenance - Bus Yard 25,000$ 500,000$
18 Downtown Transit Center Rehabilitation 140,000$ 1,500,000$
19 USHA Grant 180,000$
20 Higuera St. Widening - Bridge to Elks 180,000$
21 Grand Total 19,306,900$ 11,926,406$ 12,649,910$ 230,000$ 4,149,851$
ID Debt Proceeds by Project 2023-24 2024-25 2025-26 2026-27 2027-28
1 Bonds, Infrastructure Loan (Debt)47,000,000$ 74,960,000$
2 Cultural Arts District Parking Structure 47,000,000$
3 Prado Road Interchange 74,960,000$
4 Grand Total 47,000,000$ 74,960,000$
Budget Document Pg. 75 Page 787 of 829
Section E: Capital Improvement Plan
2023-25 Proposed CIP
The tables and charts below present the City’s Fiscal Year 2023-25 Capital Improvement Plan, breaking
down the various projects, types, funds, and cost estimates. The following sections present:
1. Projects by Type
2. Expenditures by Category
3. Expenditures by Funds – All Funds
4. Expenditures by Major City Goal; and
5. A complete list of CIP Projects by Type
1. Projects by Type
Annual Asset
Maintenance
22%
Asset
Replacement
22%
New Asset
53%
CIP Reserve
3%
GRAPH C-2: PROJECT BY TYPE: 2023-24
Annual Asset
Maintenance
31%
Asset
Replacement
44%
New Asset
19%
CIP Reserve
6%
GRAPH C-3: PROJECT BY TYPE: 2024-25
Budget Document Pg. 76 Page 788 of 829
Section E: Capital Improvement Plan
2. CIP Expenditures by Category
Table 32 - CIP Categories by % FY 23-24 FY 24-25
Cultural Services 0.28% 0.45%
Environmental Protection 2.69% 0.25%
Facilities 1.07% 1.40%
Fire Safety 0.17% 0.00%
Governance 0.15% 0.15%
Information Technology 0.85% 2.77%
Multimodal Transportation 57.45% 44.56%
Neighborhood Wellness 3.25% 3.95%
Open Space 0.15% 1.56%
Police Protection 0.00% 0.13%
Recreational Services 1.14% 8.48%
Roadway Infrastructure 6.28% 8.53%
Stormwater 9.29% 5.99%
Utility Services 13.77% 15.82%
CIP Reserve 3.45% 5.96%
Table 31 - CIP Expenditures by Category
Budget Document Pg. 77 Page 789 of 829
Section E: Capital Improvement Plan
3. CIP Expenditures by Fund – All Funds
Table 33 - CIP Expenditures by Fund
ID Fund with Contributing Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Total 5-Year Total
1 207 - Public Art Private Sector Fund 325,000$ 300,000$ 200,000$ 300,000$ 300,000$ 625,000$ 1,425,000$
2 General Capital Outlay 75,000$ 50,000$ 125,000$ 125,000$
3 Local Revenue Measure 250,000$ 250,000$ 200,000$ 300,000$ 300,000$ 500,000$ 1,300,000$
4 211 - SB1 Road Repair 2017 1,071,000$ 1,092,000$ 1,114,000$ 1,136,000$ 1,159,000$ 2,163,000$ 5,572,000$
5 401 - Capital Outlay Fund 40,269,232$ 31,460,166$ 115,449,594$ 39,961,000$ 34,250,000$ 71,729,398$ 261,389,992$
6 Bonds, Infrastructure Loan (Debt)74,960,000$ -$ -$ 74,960,000$
7 DWR Grant 6,079,000$ 6,079,000$ 6,079,000$
8 Federal HBP Grant 6,000,000$ 6,000,000$ 6,000,000$
9 General Capital Outlay 2,454,302$ 2,305,000$ 4,884,594$ 3,700,000$ 2,000,000$ 4,759,302$ 15,343,896$
10 Local Revenue Measure 20,074,670$ 20,850,166$ 27,010,000$ 36,066,000$ 32,055,000$ 40,924,836$ 136,055,836$
11 San Luis Obispo County 1,435,260$ 1,435,260$ 1,435,260$
12 SLOCOG Grant 1,500,000$ -$ 6,000,000$ -$ -$ 1,500,000$ 7,500,000$
13 State or Federal Grant 6,951,000$ 2,140,000$ 2,400,000$ -$ -$ 9,091,000$ 11,491,000$
14 Transportation Development Act TDA 45,000$ 90,000$ 45,000$ 45,000$ 45,000$ 135,000$ 270,000$
15 USHA Grant 180,000$ 180,000$ 180,000$
16 Zone 9 1,550,000$ 150,000$ 150,000$ 150,000$ 150,000$ 1,700,000$ 2,150,000$
17 402 - Fleet Repl Fund 805,000$ 685,000$ 1,157,000$ 1,545,000$ 2,040,000$ 1,490,000$ 6,232,000$
18 General Capital Outlay 190,516$ 195,000$ 75,000$ 135,000$ 190,516$ 595,516$
19 Local Revenue Measure 805,000$ 494,484$ 962,000$ 1,470,000$ 1,905,000$ 1,299,484$ 5,636,484$
20 403 - Info Tech Repl Fund 869,028$ 1,446,656$ 2,575,784$ 888,180$ 926,270$ 2,315,684$ 6,705,917$
21 General Capital Outlay 520,698$ 1,014,484$ 1,306,794$ 302,508$ 1,535,182$ 3,144,484$
22 Local Revenue Measure 348,330$ 432,172$ 1,268,990$ 888,180$ 623,761$ 780,502$ 3,561,433$
23 404 - Major Facility Repl Fund 822,000$ 423,178$ 550,000$ 1,480,000$ 1,580,000$ 1,245,178$ 4,855,178$
24 General Capital Outlay 250,000$ 50,000$ 100,000$ 550,000$ 300,000$ 950,000$
25 Local Revenue Measure 572,000$ 373,178$ 450,000$ 930,000$ 1,580,000$ 945,178$ 3,905,178$
26 405 - Infractructure Invest CIP Fund 200,000$ 12,750,000$ 1,150,000$ 12,950,000$ 14,100,000$
27 General Capital Outlay 200,000$ 200,000$ 200,000$
28 Infrastructure Investment Fund 12,750,000$ 1,150,000$ 12,750,000$ 13,900,000$
29 501 - Parkland Development Fund 800,000$ 800,000$ 800,000$
30 503 - Airport Area Transp. Impact Fee Fund 126,000$ -$ -$ 126,000$ 126,000$
31 507 - Transportation Impact Fee Fund 55,000$ 237,000$ 2,055,000$ 55,000$ 55,000$ 292,000$ 2,457,000$
32 510 - Parkland Development 200,000$ 138,341$ 338,341$ 338,341$
33 511 - OASP Park Fund 500,000$ 1,211,641$ 250,000$ 1,711,641$ 1,961,641$
34 514 - SLR Transportation Impact Fee Fund 7,300,000$ -$ 7,300,000$
35 515 - OASP Transportation Impact Fee Fund 300,000$ 100,000$ 2,000,000$ -$ -$ 400,000$ 2,400,000$
36 519 - Parkland Improvement 836,522$ 836,522$ 836,522$
37 601 - Water Fund 6,842,477$ 5,318,759$ 11,979,132$ 5,776,168$ 5,925,428$ 12,161,236$ 35,841,964$
38 602 - Sewer Fund 9,451,843$ 3,631,306$ 8,089,641$ 1,639,168$ 10,560,524$ 13,083,149$ 33,372,482$
39 611 - Parking Fund 48,594,961$ 1,382,467$ 1,631,665$ 1,702,292$ 1,107,612$ 49,977,428$ 54,418,996$
40 Bonds, Infrastructure Loan (Debt) 47,000,000$ 47,000,000$ 47,000,000$
41 Parking Fund 1,594,961$ 1,382,467$ 1,631,665$ 1,702,292$ 1,107,612$ 2,977,428$ 7,418,996$
42 621 - Transit Fund 4,607,466$ 3,794,674$ 4,260,629$ 232,295$ 4,152,812$ 8,402,140$ 17,047,875$
43 State or Federal Grant 4,596,900$ 3,786,406$ 4,249,910$ 230,000$ 4,149,851$ 8,383,306$ 17,013,067$
44 Transit Fund 10,566$ 8,268$ 10,719$ 2,295$ 2,961$ 18,834$ 34,808$
45 705 - Whale Rock Fund 105,625$ 2,141,546$ 54,859$ 80,000$ 608,904$ 2,247,171$ 2,990,933$
46 Grand Total 115,818,632$ 67,150,255$ 159,817,304$ 54,795,102$ 62,665,548$ 182,968,887$ 460,246,841$
Budget Document Pg. 78 Page 790 of 829
Section E: Capital Improvement Plan
4.CIP Expenditures by Major City Goal
Staff look to the established Major City Goals in preparing the CIP. Although a large part of the CIP does
not directly align with a specific Major City Goal (see Other category below), the CIP supports the overall
core functions of local government and efforts toward enhancing the quality of life for residents and
community members. Over the next two years, staff will continue learning more about what capital
projects are responsive to the MCG to advance Diversity, Equity, Inclusion (DEI).
Table 34 - CIP Expenditures by Major City Goal
ID By Major City Goal 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Total 5-Year Total
1
Climate Action, Open
Space and Sustainable
Transportation 34,306,900$ 16,846,406$ 23,155,910$ 13,070,000$ 19,454,851$ 51,153,306$ 106,834,067$
2
Diversity, Equity, Inclusion
(DEI)50,000$ 50,000$ -$ -$ -$ 100,000$ 100,000$
3
Economic Recovery,
Resiliency and Fiscal
Sustainability 51,111,972$ 3,605,028$ 1,900,000$ 11,010,000$ 5,460,000$ 54,717,000$ 73,087,000$
4
Housing and
Homelessness 1,935,260$ 26,546,642$ 97,714,594$ 6,585,000$ 3,500,000$ 28,481,902$ 136,281,496$
5 Other 24,414,500$ 16,102,179$ 33,046,800$ 20,130,102$ 30,250,697$ 40,516,679$ 123,944,278$
6 CIP Reserve 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 8,000,000$ 20,000,000$
7 Grand Total 115,818,632$ 67,150,255$ 159,817,304$ 54,795,102$ 62,665,548$ 182,968,887$ 460,246,841$
Climate Action,
Open Space and
Sustainable
Transportation
30%
Diversity, Equity,
Inclusion (DEI)
0%
Economic Recovery,
Resiliency and Fiscal
Sustainability
44%
Housing and
Homelessness
2%
Other
21%
CIP Reserve
3%
Graph C-4: Major City Goal: 2023-25
Budget Document Pg. 79 Page 791 of 829
ID Table C1: Project By Type ‐ All Projects (IN THOUSANDS)2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2‐Year Total 5‐Year Total
1 Annual Asset Maintenance $ 24,904 $ 20,867 $ 26,983 $ 23,841 $ 33,492 $ 45,771 $ 130,087
2 Street Reconstruction & Resurfacing 6,850 5,000 7,514 6,000 9,000 11,850 34,364
3 Waterline Replacement: Johnson ‐ Iris to Bishop 3,300 ‐ ‐ ‐ ‐ 3,300 3,300
4 Storm Response and Recovery 2,750 ‐ ‐ ‐ ‐ 2,750 2,750
5 Storm Drain System Replacement 1,875 1,025 825 1,325 1,325 2,900 6,375
6 Major Facility Maintenance 1,152 423 625 1,515 1,730 1,575 5,445
7 IT Replacement 990 1,861 2,695 911 985 2,851 7,441
8 Fleet Replacement: Public Works 845 395 612 1,110 1,470 1,240 4,432
9 Water Storage Tank Maintenance 755 1,000 127 1,100 1,100 1,755 4,082
10 General Parking Structure Maintenance 700 700 1,000 1,100 1,100 1,400 4,600
11 Park Major Maintenance & Repairs 520 440 710 1,360 1,103 960 4,133
12 Urban Forest Maintenance 420 440 450 450 450 860 2,210
13 Water Meters and Boxes 335 343 350 350 350 678 1,728
14 Parking Lot Maintenance 285 745 515 1,330 615 1,030 3,490
15 Trench Repairs‐ Water 280 280 280 280 280 560 1,400
16 Water Valve Cover Adjustments 276 35 35 35 35 311 416
17 Waterline Replacements ‐ Point Repair 250 ‐ 250 ‐ 250 250 750
18 Water Treatment Plant Major Facility Maintenance 245 90 45 45 140 335 565
19 Fleet Replacement: Utilities 230 150 735 40 1,640 380 2,795
20 Annual Public Art Maintenance and Projects 225 200 100 100 100 425 725
21 Sewer Lift Station Maintenance 200 ‐ 80 ‐ 80 200 360
22 Treatment Major Facilities Maintenance 189 180 180 180 180 369 909
23 Sewer Maintenance Hole Cover Adjustments 180 30 30 30 30 210 300
24 Open Space Maintenance 170 170 170 170 170 340 850
25 WRRF Major Maintenance 150 125 125 75 50 275 525
26 WRRF ‐ Building Maintenance 150 ‐ 825 ‐ ‐ 150 975
27 Silt Removal 150 150 150 150 150 300 750
28 Bridge Maintenance 150 200 200 200 200 350 950
29 Transportation Safety & Operations 140 120 120 120 120 260 620
30 Pedestrian and Bicycle Pathway Maintenance 125 435 365 400 300 560 1,625
31 Wastewater Collections System ‐ Point Repairs 120 ‐ 120 ‐ 120 120 360
32 871 Marsh Street Structure Maintenance 100 ‐ ‐ ‐ ‐ 100 100
33 Roundabout Public Art Installations 100 100 100 200 200 200 700
34 842 Palm Parking Structure Maintenance 100 ‐ ‐ ‐ ‐ 100 100
35 Sidewalk Replacement and Installation 100 150 250 250 250 250 1,000
36 LPR Replacement 97 ‐ ‐ ‐ ‐ 97 97
37 Street Lights ‐ Annual Asset Maintenance 75 75 75 80 80 150 385
38 Traffic Signs & Striping Maintenance 75 75 75 75 75 150 375
39 Fire Hydrants 55 55 55 55 55 110 275
40 Waterline Abandonment & Connections 50 50 50 50 50 100 250
41 Neighborhood Traffic Improvements 45 30 30 30 30 75 165
42 Serrano, Bressi, Dana Pipe Replacement 25 1,275 ‐ ‐ ‐ 1,300 1,300
43 Trench Repairs‐ Sewer 25 25 25 25 25 50 125
44 Whale Rock Reservoir ‐ Major Facility Maintenance 20 120 45 20 20 140 225
45 Laguna Lake Golf Course Maintenance 20 20 20 20 20 40 100
46 WTP Water Meter Replacement (91734)10 30 55 ‐ ‐ 40 95
47 Open Space Climate‐Informed Maintenance ‐ ‐ ‐ ‐ 150 ‐ 150
48 Tank Maintenance and Cleaning ‐ ‐ ‐ 50 250 ‐ 300
49 Whale Rock Pump Station Electrical Repairs (A and B) ‐ 2,000 ‐ ‐ ‐ 2,000 2,000
50 SLO Creek Walk Maintenance ‐ 250 ‐ 250 ‐ 250 500
51 Waterline Replacements: Stenner Canyon ‐ ‐ 80 1,100 ‐ ‐ 1,180
52 Source Water Strategic Plan ‐ 90 ‐ ‐ ‐ 90 90
53 Old Garden Creek Retaining Wall ‐ ‐ 175 ‐ 800 ‐ 975
54 Buchon‐Santa Rosa Intersection Improvements ‐ ‐ 100 ‐ ‐ ‐ 100
55 Waterline Replacements Craig, Christina, Jaycee ‐ ‐ ‐ ‐ ‐ ‐ ‐
56 Playground Equipment Replacement ‐ ‐ 1,100 1,100 1,600 ‐ 3,800
57 Whale Rock Transmission Pipeline ‐ ‐ ‐ 60 510 ‐ 570
58 Foothill ‐ Chorro Pipeline Replacement ‐ 250 2,750 ‐ ‐ 250 3,000
59 Sustainable Groundwater Management Act GSP ‐ 150 150 150 150 150 600
60 Filter Media Replacement and Underdrain Repairs ‐ ‐ 60 60 250 ‐ 370
61 Recycled Water Pump Station Maintenance ‐ 60 ‐ ‐ ‐ 60 60
62 Foothill ‐ Cuesta Sewer Siphon ‐ ‐ 200 250 2,750 ‐ 3,200
63 Corporation Yard Permimeter Fence Replacement ‐ ‐ 550 ‐ ‐ ‐ 550
64 Waterline Replacements ‐ Highland at UPRR and Cal Poly ‐ ‐ ‐ 850 ‐ ‐ 850
65 Inflow/Infiltration Reduction ‐ 250 250 250 250 250 1,000
5. CIP Expenditures by Project Type
Budget Document Pg. 80 Page 792 of 829
ID Table C1: Project By Type ‐ All Projects (IN THOUSANDS)2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2‐Year Total 5‐Year Total
1 Annual Asset Maintenance $ 24,904 $ 20,867 $ 26,983 $ 23,841 $ 33,492 $ 45,771 $ 130,087
66 Reservoir 2 Replacement ‐ 900 500 ‐ ‐ 900 1,400
67 Dalidio Drive Access Improvements ‐ ‐ ‐ 25 75 ‐ 100
68 Parking Lot Maintenance ‐ Bus Yard ‐ 25 500 ‐ ‐ 25 525
69 Fleet Replacement: Admin ‐ 250 125 ‐ ‐ 250 375
70 Fleet Replacement: Parks and Recreation ‐ ‐ 70 80 ‐ ‐ 150
71 Johnson and Buchon Pipeline Replacement ‐ ‐ ‐ 135 2,485 ‐ 2,620
72 Fleet Replacement: Police ‐ 90 350 290 335 90 1,065
73 Reycled Water Annual UV Bulb Replacement ‐ 10 10 10 10 10 40
74 Asset Replacement 25,964 29,254 27,082 13,782 17,471 55,218 113,553
75 Mid‐Higuera Bypass 8,729 2,850 ‐ ‐ ‐ 11,579 11,579
76 WRRF And Wastewater Collection Shop 6,500 ‐ ‐ ‐ ‐ 6,500 6,500
77 Bus Replacements with EV 2,702 2,226 3,055 ‐ 2,146 4,928 10,128
78 Mission Plaza Concept Plan Implementation 2,430 470 100 6,000 4,000 2,900 13,000
79 Transit Facility EV Charging Infrastructure 1,805 1,445 605 ‐ 414 3,251 4,270
80 Taft, Hathaway, Phillips, Buena Vista, and Loomis Pipeline
Replacement 1,225 ‐ ‐ ‐ ‐ 1,225 1,225
81 Water Treatment Plant ‐ Building Maintenance 650 ‐ ‐ ‐ ‐ 650 650
82 California & Taft Roundabout 500 ‐ 3,022 ‐ ‐ 500 3,522
83 Morro, Mill, Santa Rosa, Chorro Pipeline Replacement 253 ‐ ‐ ‐ ‐ 253 253
84 Santa Rosa ‐ Stenner Creek Road to Highland Pipeline
Replacement 230 ‐ 8,230 ‐ ‐ 230 8,460
85 Fire Station 3&4 Remodel Space Study and Design 200 ‐ 1,000 ‐ ‐ 200 1,200
86 Higuera St. Widening ‐ Bridge to Elks 180 ‐ ‐ ‐ ‐ 180 180
87 WRRF Power Cogeneration Upgrade 150 ‐ 1,475 ‐ ‐ 150 1,625
88 Salinas Reservoir Transfer of Ownership Plan 150 ‐ ‐ ‐ ‐ 150 150
89 Chorro ‐ Highland to Meinecke 24 inch Pipeline
Replacement 100 1,900 ‐ ‐ ‐ 2,000 2,000
90 Bus Shelter Replacements 90 90 90 90 90 180 450
91 Wastewater Lift Station Rehabilitation: Silver City Lift
Station 70 100 1,980 ‐ ‐ 170 2,150
92 Downtown Transit Center Rehabilitation (Transit Fund) ‐ ‐ ‐ 140 1,500 ‐ 1,640
93 Fire Station 4 Metal Building Gym Space ‐ ‐ 200 ‐ ‐ ‐ 200
94 Broad, Murray, and Chorro Pipeline Replacement ‐ ‐ ‐ ‐ 145 ‐ 145
95 Fleet Replacement: Police ‐ ‐ ‐ 65 ‐ ‐ 65
96 Sinsheimer Stadium Fencing ‐ ‐ ‐ 50 ‐ ‐ 50
97 Existing SLO Repertory Theater Tenant Improvements ‐ ‐ ‐ ‐ 150 ‐ 150
98 Fire Station 3 & 4 Carpet Replacement ‐ ‐ ‐ 40 ‐ ‐ 40
99 Laguna Lake Golf Course Irrigation Improvements ‐ ‐ ‐ ‐ 300 ‐ 300
100 Major Facility Replacements ‐ 350 1,040 2,500 3,500 350 7,390
101 City Hall Fire Alarm Fire Alarm Control Panel ‐ ‐ ‐ 30 ‐ ‐ 30
102 Truck to tow the Mobile Command Trailer ‐ ‐ ‐ ‐ 82 ‐ 82
103 Water Treatment Plant Major Facility Maintenance ‐ 25 100 ‐ ‐ 25 125
104 WRRF ‐ Demolish Old Effluent Structure ‐ ‐ ‐ 50 495 ‐ 545
105 Communications Lieutenant Vehicle ‐ ‐ ‐ 62 ‐ ‐ 62
106 Police Building Stop‐Gap Improvements ‐ ‐ ‐ 600 ‐ ‐ 600
107 Waterline Replacements: Rockview ‐ Stoneridge to Broad ‐ ‐ 130 1,530 ‐ ‐ 1,660
108 Recycled Waterline Replacements: Tank Farm ‐ Long ‐ ‐ ‐ 25 625 ‐ 650
109 San Jose, Ramona, Monte Vista, and CA Pipeline
Replacement ‐ 1,225 ‐ ‐ ‐ 1,225 1,225
110 Downtown Renewal ‐ 200 ‐ 2,000 ‐ 200 2,200
111 Bee Bee ‐ South Street to Sandercock Pipeline Replacement ‐ ‐ ‐ 400 ‐ ‐ 400
112 Screw Press ‐ ‐ ‐ 200 3,360 ‐ 3,560
113 Public Safety Mobile Command Vehicle/City EOC ‐ ‐ ‐ ‐ 550 ‐ 550
114 Devaul Basketball Court Replacement ‐ ‐ ‐ ‐ 15 ‐ 15
115 Recreation Sites Tenant Improvements ‐ Comm
Room/Ludwick ‐ ‐ ‐ ‐ 100 ‐ 100
116 Prado Road Bridge & Road Widening ‐ 18,373 6,055 ‐ ‐ 18,373 24,428
117 New Asset 60,951 13,029 101,753 13,172 7,702 73,980 196,607
118 Palm ‐ Nipomo Parking Structure 47,000 1,500 490 ‐ ‐ 48,500 48,990
119 ATP ‐ Higuera Complete Street Project 8,251 750 ‐ ‐ ‐ 9,001 9,001
Budget Document Pg. 81 Page 793 of 829
ID Table C1: Project By Type ‐ All Projects (IN THOUSANDS)2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2‐Year Total 5‐Year Total
1 Annual Asset Maintenance $ 24,904 $ 20,867 $ 26,983 $ 23,841 $ 33,492 $ 45,771 $ 130,087
120 Prado Road Interchange 1,435 2,750 91,410 6,585 ‐ 4,185 102,180
121 Parks and Rec General Plan Implementation 800 ‐ ‐ ‐ ‐ 800 800
122 Development Related Park Improvements 500 5,424 250 ‐ ‐ 5,924 6,174
123 ATP ‐ South/King Pedestrian Hybrid Beacon 500 ‐ ‐ ‐ ‐ 500 500
124 Active Transportation Plan Implementation 435 550 520 2,400 2,400 985 6,305
125 ATP ‐ Railroad Safety Trail (Orcutt to Tiburon) and Culvert
Replacement 300 100 2,000 ‐ ‐ 400 2,400
126 Parking Enforcement Equipment at Gate Entry 300 ‐ ‐ ‐ ‐ 300 300
127 ATP ‐ Orcutt Road Railroad Crossing Upgrades 200 ‐ 500 ‐ ‐ 200 700
128 Development Agreement ‐ City Share ‐ 200 ‐ ‐ ‐ ‐ 200 200
129 ATP ‐ Foothill Boulevard Complete Street Project 200 ‐ 2,400 ‐ ‐ 200 2,600
130 Emerson Park Amenity Upgrades and Beautification 200 ‐ ‐ ‐ ‐ 200 200
131 Pismo Street Retaining Wall ‐ Storm Response 200 ‐ 1,700 ‐ ‐ 200 1,900
132 Electric Vehicle Charging Station at Various Facilities 175 100 150 150 150 275 725
133 Open Space Acquisition 175 150 250 150 150 325 875
134 Transportation Monitoring & Modeling Update 55 55 55 55 55 110 275
135 Banner Arms, Bench Arm Rests, Signs 25 25 25 25 25 50 125
136 Climate Action Plan Support ‐ ‐ ‐ ‐ 115 ‐ 115
137 Downtown Zig‐Zag Lighting ‐ ‐ ‐ 1,100 ‐ ‐ 1,100
138 Parking Pay Station Installation ‐ 600 600 600 ‐ 600 1,800
139 Recycled Water Orcutt Street ‐ Fernwood to Laurel ‐ 25 675 ‐ ‐ 25 700
140 Emily Street Extension ‐ ‐ ‐ ‐ 200 ‐ 200
141 Development Agreements ‐ ‐ ‐ ‐ 2,300 ‐ 2,300
142 City Hall Drought Tolerant Landscaping ‐ ‐ ‐ ‐ 35 ‐ 35
143 Fleet Replacement: Police ‐ ‐ ‐ 65 235 ‐ 300
144 City Hall Lighting ‐ ‐ 50 200 ‐ ‐ 250
145 Waterline Replacements: Patricia, Highland, and La Entrada ‐ ‐ ‐ 127 1,397 ‐ 1,524
146 Laguna Lake Dredging and Sediment Management Project
Implementation ‐ 900 ‐ 900 ‐ 900 1,800
147 South Street Median Landscaping ‐ ‐ 550 ‐ ‐ ‐ 550
148 Recycled Water Storage Tank ‐ ‐ ‐ ‐ 20 ‐ 20
149 Community EV Charging ‐ ‐ 50 50 50 ‐ 150
150 Lead by Example ‐ 100 78 765 570 100 1,513
151 CIP Reserve $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 8,000 $ 20,000
152 Grand Total $ 115,819 $ 67,150 $ 159,817 $ 54,795 $ 62,666 $ 182,969 $ 460,247
Budget Document Pg. 82 Page 794 of 829
Appendix A – General Fund Detailed SOBC List
Appendix A – General Fund SOBC Descriptions
ID General Fund SOBCs (ID # corresponds with tables in Section B-3) 2023-24 2024-25
1 Annual MS4 permit fee - SWRCB $ 18,000 $ 18,500
Municipal Separate Stormwater Sewer System (MS4) permits are regulatory driven and required by
the State Water Resource Control Board (SWRCB). This item was previously not budgeted but this is a
recurring mandatory charge that has caused the account to go over budget in the past.
2 City Hall Temporary Restroom $ 12,000 $ 12,600
Ongoing funding for portable toilet facilities in front of City Hall. The addition of this facility has
resulted in less defecation and urinating issues in the downtown, especially near City Hall. Cost for
rental is roughly $250 per month and the daily servicing of the restroom is $50 per day. This budget
allows for servicing the restroom every other day.
3 Critical Police Software $ 26,000 $ 26,000
Community Policing Software - Purchasing this specialized software will enable the department to
provide enhanced community policing efforts. The software is data driven and provides predictable
crime locations, identifies crime patterns, provides risk assessments, creates patrol heatmaps, utilizes
microgrid technology, and provides many other tools to increase overall community safety and
transparency.
Investigative Software - This is one of the investigative tools used by the department that allows the
detectives to obtain information from various types of smart phones. The department has been using
this tool over the past year but it had been paid for by another entity. The outside entity will no
longer be funding this software and the department is requesting ongoing budget to continue the use
of this robust and extremely beneficial tool.
4 Utilities and Janitorial Services for New City Buildings $ 89,125 $ 89,875
Funding to be used for ongoing janitorial services and utilities costs at the new HR offices as well as a
building that the City plans to acquire in the coming months.
5 Increased Cost for Animal Services Operations $ 50,000 $ 50,000
The City contracts with the County of San Luis Obispo for the provision of Animal Care and Control
Services. Services include emergency and non-emergency response, investigative services, sheltering,
licensing, and adoption services. Animal Services recently requested an amendment of their position
allocation to add 3.0 FTE Animal Care Technicians (ACTs). This budget recommendation will help
support that request as well as cover the anticipated cost increases in existing services.
6 New Regular - Urban Forester (1 FTE) $ 96,690 $ 100,065
This new position would support the in-house Urban Forest crew with emergency response, reactive
work orders, and young tree care.
7 Preventative Mental Health Services Program for Public Safety $ 35,000 $ 37,000
Budget Document Pg. 83 Page 795 of 829
Appendix A – General Fund Detailed SOBC List
ID General Fund SOBCs (ID # corresponds with tables in Section B-3) 2023-24 2024-25
The City is requesting to establish an ongoing preventative mental health service program for
employees in the police and fire departments. The purpose of this program is to provide confidential
employee support services by trained professionals who specialize in serving public safety personnel
so they can continue to effectively serve the community. Following the tragic death of Detective
Benedetti, the City has been providing confidential mental health services for police and fire
personnel at no cost to the employee. This has allowed employees an avenue to access mental health
professionals specializing in public safety without feeling like they need to file a workers’
compensation claim to get support or assistance.
8 Reclassification - Communications Manager $ 105,567 $ 105,630
As part of an internal reorganization, the department temporarily assigned a lieutenant to the
Emergency Communications Center (ECC). Prior to this, the ECC was managed by a civilian
Communications Manager and two Communication Technician Supervisors. Due to the
reorganization, the Communications Manager transitioned into a vacant supervisor position. The re-
assignment of a patrol lieutenant to the ECC has proven to be very successful as it places some
operational experience directly into the operations of the dispatch team.
The department is budgeted for three lieutenant positions which includes patrol night watch, patrol
day watch, and an investigative/administrative lieutenant. Staff is requesting to add a fourth position
which will allow the permanent placement of a lieutenant to the ECC. Funding from the civilian
Communications Manager position (which is vacant and will no longer be necessary) will help offset
costs of adding a fourth lieutenant.
9 Volunteer Program Budget $ 26,525 $ 24,775
The City hired a Volunteer Coordinator in FY 2022-23 and the position was approved as ongoing on
March 7, 2023, this request is to establish an operating budget that has been subsequently identified
to support and institute the Volunteer program (training, software, equipment and supplies).
10 Youth Programs Scholarship Funds $ 20,000 $ 25,000
This request is tied to a Major City Goal and would provide financial assistance to qualified families
through City funded scholarships for youth related programs such as: before/after-school childcare,
spring break & summer camps, swim lessons, and after-school sport programs.
11 10 Tall Tree Planting Implementation (Creeks & Open Space) $ 50,000 $ 50,000
This project will support implementation of the 10 Tall goal of planting 10,000 new trees by 2035, as
identified in the Council's direction for the work program attendant to the Major City Goal for Climate
Action, Open Space, and Sustainable Transportation. Use of these funds will be focused in creeks and
open space areas; this project is one of the primary implementation pathways of the Natural
Solutions pillar of the Climate Action Plan, which directs staff to "Expand climate resilience and
carbon sequestration practices to additional properties and sites in the City and broader Greenbelt".
Open space climate interventions and tree planting activities are also called for in the recently
adopted Climate Adaptation and Safety Element of the City's General Plan.
12 Contract - Half-Time Human Resources Specialist - Onboarding $ 46,895 $ 48,583
This request will support the Human Resources Department to expand the City's onboarding program.
Based on the priority, this position could either work to expand a job specific onboarding program
across the organization, or to create and support CSG departments to transition to an electronic
onboarding system for supplemental employees and serve as a general resource to answer questions
for the supplemental workforce.
13 Contract Mowing Services at Parks $ 100,000 $ 100,000
Budget Document Pg. 84 Page 796 of 829
Appendix A – General Fund Detailed SOBC List
ID General Fund SOBCs (ID # corresponds with tables in Section B-3) 2023-24 2024-25
This funding will allow Parks Maintenance to contract out mowing services for 6 facilities (Santa Rosa,
Mitchell, Emerson, Laguna Lake, Throop, Meadow). This allows staff to prioritize work related to
fixing restrooms, lighting, graffiti abatement, and landscaping. This request is a force multiple in that
it allows staff to focus on more complicated maintenance work and contract out lower level
functions.
14 Historic Resources Inventory $ 100,000 $ 150,000
MCG Task 3.2.b - Initiate implementation of the consultant recommended phased approach to update
the City's historic resources inventory.
15 Hotel Voucher Program - CAPSLO $ 25,000 $ -
MCG Task 3.2.a - Funding for a hotel voucher program that CAPSLO would offer unhoused individuals
if they cannot offer a bed to ensure a bridge for temporary emergency shelter.
16 La Loma Adobe Rehabilitation (Phase I) $ 100,000 $ -
The City is part of a MOU with the Friends of La Loma Adobe to bring forward efforts to rehabilitate
the structure and restore the grounds of this City-owned property. Following significant planning
efforts, this first phase leading towards rehabilitation of the adobe entails the following steps: 1.
preparation of plans, specifications, and engineering for stabilization of the structure, 2.
environmental document (CEQA) and building permit process, and 3. resolution of the lot line
discrepancy with the neighbor (following survey and deed research that has recently been
undertaken). The Friends of La Loma will undertake the first two steps and the City will lead the third
step. The goal of this Phase I effort is to attain "shovel ready" status in 2025 and position the project
to attract major grants and other external funding. This will be formalized through a grant agreement
with a matching component.
17 Margarita Area Specific Plan Update $ 100,000 $ 200,000
MCG Task 3.1.b - Initiate an update to the Margarita Area Specific Plan to include more housing
options of all types (affordable, multi-family, mixed-use) on undeveloped land, and work with
property owners on a plan for the completion of the Prado Road extension to Broad Street.
18 MCG - Exploration of a potential Stormwater Utility $ 10,000 $ 10,000
The Department of Finance et al v. Commission of State Mandates (Super. Ct. No.
34201080000604CUWMGDS) court appeal has created the possibility that Stormwater could operate
as an enterprise fund. These legal services funds are preliminarily set aside to explore the feasibility of
this approach. Midyear or supplemental asks will be considered as the corresponding legal decisions
are finalized.
19 Public Safety Equipment Replacement $ 171,322 $ 167,334
Additional funding is being requested for both Police and Fire's equipment replacement cycle. The
increase reflects current costs (inflation) and the addition of items added to the replacement cycle.
Some of the items added to the replacement cycle include suppressors (15 year life span), rifle rated
vests (10 year life span), and accessories to complete firearm purchases. In previous years the
department was able to utilize equipment from the DRMO program (military excess equipment) at
little or no cost; unfortunately, equipment from this program is no longer available to the
department. On the Fire Department side, the total cost of the Breathing Apparatus sets being
purchased this year have increased by $100,000. Turnouts have increased by 30%, a $75,000 increase.
20 Safe Parking (Location TBD) $ 30,000 $ -
MCG Task 3.2.d - Develop sustainable safe parking programs.
21 SLO Onboarding Assistance Resources (SOAR) Program $ 6,000 $ 6,000
Budget Document Pg. 85 Page 797 of 829
Appendix A – General Fund Detailed SOBC List
ID General Fund SOBCs (ID # corresponds with tables in Section B-3) 2023-24 2024-25
Funding to participate in the Chamber of Commerce SOAR program to provide relocation and
community building assistance to new hires relocating from out of area. This level of funding will
allow six new hires per year to go through the SOAR program. Recommended that this funding is one-
time while the department assesses if the program is helpful for new hires. If the program is
successful, the department will request ongoing funding in the 2025-27 Financial Plan.
22 EDD/Beacon Data $ 11,000 $ 11,000
The EDD and Beacon data is critical to the employment scorecard to determine the effectiveness of
many of our Economic Development related efforts and will be a key metric to measure the
effectiveness of the updated EDSP.
23 EDSP Implementation $ 75,000 $ 75,000
The timing of the update of the Economic Development Strategic plan is slightly behind the budget
process. This funding is being set aside in order to have funding available for the identified initiatives.
24 Community Activations (MCG 1.4e) $ 75,000 $ 75,000
The funding that was available during and just after the pandemic was key to our recovery. This
funding will be used to continue some of those efforts as well as seed money for new activations in
downtown and other areas of the City. Some past examples include the windows in Ross and
Beverly's ($12K), Lunar New Year Decorations ($3K). Mission Plaza Activations ($3K (Chalk art-$20K
roller rink). This funding also covers the cost of the 140+ banner location switch outs 4x a year with
the existing arms and City owned banner product as well as storage and cleaning.
25 Shop Local Business Promotion $ 85,000 $ 85,000
Our shop local efforts have continued to pay huge dividends in maintaining a vibrant local economy
and should be continued on an ongoing basis. This allocation directly funds the marketing contract for
all Support Local advertising initiatives including: the ongoing neighborhood campaign, the seasonal
targeted buy local campaigns like back-to-school, Valentine’s Day and Mother's Day shopping, and the
advertising for Buy Local Bonus and Eat Local Bonus. This investment combined with the gift card
funding for BLB/ELB, resulted in a 5:1 ROI for the city directly producing sales tax revenue into the
city's general fund.
26 Buy Local and Eat Local Bonus $ 125,000 $ 125,000
The various buy local initiatives have created increased economic activity by a factor of 10x and they
proved their effectiveness during and post pandemic and should be continued.
27 Childcare Grants $ 25,000 $ 25,000
Continue the Childcare grants for starting new and expanding current childcare businesses.
28 New Contract Position - Recreation Coordinator (Public Art) $ 90,550 $ 89,950
Budget Document Pg. 86 Page 798 of 829
Appendix A – General Fund Detailed SOBC List
ID General Fund SOBCs (ID # corresponds with tables in Section B-3) 2023-24 2024-25
Due to the increased need to support Public Art as a major city goal, additional staff support is
needed. The role and oversight of public art has outgrown the capacity to be a portion of the role of
the Recreation Manger. Assessment of the two-year contract with SLOMA to try and ease the demand
of the public art program has identified that more administrative and operational oversight is needed
in the role of a program coordinator to support the Manager. With the impacts of the increased
public art focus and quantity of new projects, a position is needed to support the increased demand
for installations, back-logged maintenance, programming and activating of public space through
public art, support of private development and voluntary art and evaluations of current policies and
procedures for efficiency. The role would encompass public art administration and programming,
taking on the operational elements of the role. Reporting to the Recreation Manager (Public Art
Program) who maintains the strategic, big picture, budgetary, and partner/liaison components.
29 Rate Manual Updates through IWMA $ 15,000
IWMA has taken the lead on updating the rate manual. This is recommended to optimize pooled
regional resources for program goals.
30 Below Market Rate Administrator (Consultant Services) $ 150,000 $ 150,000
Originally approved as one-time consultant funding in the 21-23 Financial Plan,
this consultant contract is necessary for the overall management and administration of the City's Inclu
sionary Housing Inventory, including ownership units, rentals, and financing. Over the past several yea
rs 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 administrati
on of this effort moving forward. In addition, having an Administrator serves DEI goals by ensuring
that everyone in the region has equal access to affordable housing units available through the
program.
31 IT Project Management Services $ 104,000 $ -
IT is hiring a project manager who will be trained and developed to support CDD and Energov
projects, however, during the transition period CDD will continue to fund use of a contractor in this
capacity as projects, such as e-review, are developed and move forward to implementation. The IT
replacement fund receives revenue through the IT surcharge which is specifically designed to help
fund EnerGov maintenance; therefore, it is recommended to use this funding.
32 Reclassification - Administrative Assistant III (Administration and IT) $ - $ -
The Administrative Assistant III requested to align resources with the support needed to carry out the
Department workplan and Major City Goals. This position will serve as the department's Fiscal Officer,
and provide administrative support to the Deputy City Manager, as well as critical City programs,
including economic development and tourism, communications, sustainability and natural resources,
and the Clerk's Office. The Administrative Assistant III position will be funded by reallocating the
Management Fellow funding to support the new position. The proposed change is cost neutral.
33 Reclassification - Administrative Assistant III (Police) $ - $ -
Budget Document Pg. 87 Page 799 of 829
Appendix A – General Fund Detailed SOBC List
ID General Fund SOBCs (ID # corresponds with tables in Section B-3) 2023-24 2024-25
Requesting a reclassification of the Chief's Executive Administrative Assistant. The position is
entrusted with some of the most sensitive data, has to manage all police records including personnel
files, IA files, etc. and has many other tasks that are unique to public safety and not included in the
current job classification. Even though all AA have some phone duties and public contact, this role
frequently deals with hostile, aggressive callers, creating a very stressful environment due to the
nature and political undertones of policing and the community of SLO. The AA is very
undercompensated compared to all comparison cities when looking at Police Chief and Sheriff
Executive Assistants. The recommendation is to create an Administrative Assistant IV specifically for
the Public Safety Administrative Assistant role.
34 Reclassification - Economic Development Analyst $ - $ -
Pre-Covid there was an approved plan to restructure the ED&T program. The impacts from Covid and
the overall progress of the City have proven that those changes were the right direction to take
moving forward. The ED&T team has worked with HR to revise the titles and job descriptions.
Compared with the current structure, there are no changes in job class and there are no additional
positions requested. The changes are cost neutral to the general fund and any potential overages
such as transition cost or over hire costs can be managed within the existing budget.
35 Reclassification - Economic Development and Tourism Manager $ - $ -
(Related to reclassification listed above) Pre-Covid there was an approved plan to restructure the
ED&T program. The impacts from Covid and the overall progress of the City have proven that those
changes were the right direction to take moving forward. The ED&T team has worked with HR to
revise the titles and job descriptions. Compared with the current structure there are no changes in job
class and there are no additional positions requested. The changes are basically cost neutral to the
general fund and any potential overages such as transition cost or over hire costs can be managed
within the existing budget.
36 Reclassification - GIS Specialist $ - $ -
GIS is an enterprise system that supports mission-critical systems such as Spillman Geovalidation,
Cityworks, EnerGov, and online GIS maps. GIS Specialists perform similar work on Spillman,
Cityworks, and Web GIS as SAS working on EnerGov and Motion, such as configuring applications,
writing scripts, making reports, and improving functions. In addition, GIS Specialists do more by
designing and creating mobile apps. Once viewed as a map-making tool, GIS is a platform comprised
of a network of servers, online resources, databases, and applications that do much more than make
a map. When SAS-EnerGov is unavailable, GIS Specialists are next in line to support the EnerGov
System. Staff are proposing reclassification to meet the demands of modern GIS.
37 Reclassification - Tourism and Community Promotions Manager $ - $ -
(Related to reclassifications #35 & 36) Pre-Covid there was an approved plan to restructure the ED&T
program. The impacts from Covid and the overall progress of the City have proven that those changes
were the right direction to take moving forward. The ED&T team has worked with HR to revise the
titles and job descriptions. Compared with the current structure there are no changes in job class and
there are no additional positions requested. The changes are basically cost neutral to the general fund
and any potential overages such as transition cost or over hire costs can be managed within the
existing budget.
Budget Document Pg. 88 Page 800 of 829
R ______
RESOLUTION NO. _______ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TO AUTHORIZE AND APPROVE POOLING OF
SELF-INSURANCE THROUGH THE EXCESS WORKERS’
COMPENSATION PROTECTION PROGRAM OF THE CALIFORNIA
JOINT POWERS INSURANCE AUTHORITY
WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Sections
990.4 and 990.8 of the California Government Code, the California Joint Powers
Insurance Authority (“California JPIA”) was created in 1977; and
WHEREAS, the City of San Luis Obispo (“the City”) executed the Joint Powers
Agreement in 2003 and became a member of the California JPIA primary Workers’
Compensation program in 2004; and
WHEREAS, the California JPIA has established and administered a number of
successful Workers’ Compensation Self-Insurance and Loss Pooling Programs for its
members since April 1, 1978; and
WHEREAS, the CJPIA has developed a separate Excess Protection Program
(EPP) wherein members may select a Self-Insured Retention (SIR) level which best fits
claim experience; and
WHEREAS, the City’s claim experience for the past several years indicates
moving to the EPP with an SIR of $500,000 will reduce insurance premiums and will
likely reduce overall insurance costs when compared to remaining in the primary
program; and
WHEREAS, participation in the EPP requires a Certificate of Consent to Self-
Insure, from the California Department of Industrial Relations, for workers’
compensation liabilities; and
WHEREAS, the City’s current Memorandum of Coverage delegates claim
settlement authority to CJPIA; the EPP allows an agency to continue to delegate claim
settlement authority; and the City desires to do so; and
WHEREAS, Athens Administrators provides third party administration services
for workers’ compensation programs to the City, and the City desires to continue use of
these services.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis
Obispo as follows:
Page 801 of 829
Resolution No. ______ (2023 Series) Page 2
R _____
SECTION 1. Workers’ Compensation coverage for the City of San Luis Obispo
through the Excess Workers’ Compensation Protection Program of the California JPIA
(EPP) is hereby authorized and directed effective July 1, 2023, for a minimum
commitment period of three years, pursuant to the terms of the Excess Workers’
Compensation Protection Program Memorandum of Coverage in effect at the time of any
occurrences covered by the EPP Memorandum of Coverage.
SECTION 2. The City Manager or their designee is authorized and directed to
apply to the Department of Industrial Relations for a Certificate of Consent to Self-Insure,
and to take such other actions necessary to effectuate self-insurance of workers’
compensation for employees of the City of San Luis Obispo. The application for this
Certificate of Consent to Self-Insure is attached hereto as Exhibit “1” and incorporated
herein by this reference. Upon and with adoption of this Resolution, the Mayor will sign
this application, on the last page of Exhibit “1.”
SECTION 3. The City Manager or their designee is authorized to execute an
agreement with Athens Administrators in a form subject to the approval of the City
Attorney for third party administration services for the workers’ compensation EPP, any
other documents required for participation in and administration of the workers’
compensation EPP.
SECTION 4. Appropriate officers of the City of San Luis Obispo are authorized to
pay the annual contribution for the Excess Workers’ Compensation Protection Program
(EPP) to the California JPIA.
SECTION 5. Appropriate officers of the City of San Luis Obispo are authorized to
make other deposit adjustments as provided in Articles 17 and 21 of the California JPIA
Joint Powers Agreement, which is attached hereto as Exhibit “2” and incorporated herein
by this reference.
SECTION 6. The City Manager or designee shall work with Athens Administrators
to establish the appropriate trust accounts to ensure claim settlement accounts within the
SIR are available.
SECTION 7. The City Manager or designee is authorized to act as the City’s
“Authorized Representative” for compliance with “Medicare, M edicaid, SCHIP Extension
Act 2007” Section 111, or may delegate this responsibility to Athens Administrators.
SECTION 8. The City Clerk shall certify the adoption of this resolution.
Page 802 of 829
Resolution No. ______ (2023 Series) Page 3
R _____
SECTION 9. That the City Clerk is directed to forward a certified copy of this
Resolution to the California JPIA, 8081 Moody Street, La Palma, CA 90623.
Upon motion of ______________________, seconded by
________________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of ___________ 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 803 of 829
Page 804 of 829
___________________________________________________________________________________
Form: A-2 (1-2016) | Page 1
State of California
Department of Industrial Relations
Office of Self-Insurance Plans
11050 Olson Drive, Suite 230
Rancho Cordova,Ca. 95670
Phone (916) 464-7000
Fax (916) 464-7007
State of California
Department of Industrial Relations
OFFICE OF SELF-INSURANCE PLANS
APPLICATION FOR CERTIFICATE OF CONSENT
TO SELF-INSURE AS A PUBLIC AGENCY EMPLOYER SELF-INSURER
All questions must be answered. If not applicable, enter “N/A”.
To the Director of the Department of Industrial Relations: The public agency employer identified
below submits the following information to obtain a Certificate of Consent to Self-Insure the payment of
workers’ compensation under California Labor Code Section 3700.
LEGAL NAME OF APPLICANT (Show exactly as on Charter or other official documents):
Address: ___________________________________________________________________________
City: ___________________________________ State: __________ Zip + 4: __________ -_________
Federal Tax ID # of Group: ____________________
CONTACT - Who Should Correspondence Regarding This Applicant Be Addressed To:
Name: ________________________________________ Title: _______________________________
Company Name: ____________________________________________________________________
Address: ___________________________________________________________________________
City: ___________________________________ State: __________ Zip + 4: __________ -_________
Phone: _____________________________ E-Mail: _________________________________________
TYPE OF PUBLIC ENTITY (Check one):
City and/or County School District Police and/or Fire District Hospital District
Joint Powers Authority Other (describe): __________________________________________
TYPE OF APPLICATION (Check one):
New Application Reapplication (Merger/Unification) Reapplication (Name Change)
Other (describe): _________________________________________________________________
Date Self-Insurance Program will begin: ___________________________________________________
City of San Luis Obispo
990 Palm St
San Luis Obispo CA 93401
95-6000-781
Nickole Domini Human Resources Director
City of San Luis Obispo
990 Palm St
San Luis Obispo CA 93401
(805) 781-7251 ndomini@slocity.org
4
4
Page 805 of 829
______________ ______CURRENT WORKERS’ COMPENSATION PROGRAM__________ ___ ______
Currently Insured with State Fund Policy #
Expiration Date:
Currently Self Insured, Certificate # ____________________
Other (describe): _________________________________________________________________
______________ _____CLAIMS ADMINISTRATION __________ ___ ______
Who will be administering your agency’s workers’ compensation claims? (Check one)
JPA will administer
Third Party Administrator, TPA Certificate # _________________
Public entity will self-administer nsurance Carrier will administer
Name of Third Party Administrator:
Name: _____________________________________ Title: _
Company Name: _________________________________________________________________
Address: ________________________________________________________________________
City: State: _ Zip + 4: _
Phone: _ E-Mail:
# of claims reporting locations to be used to handle Agency’s claims: ___
Does applicant currently have a California Certificate of Consent to Self-Insure? Yes No
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
________________________________________________________________________________
Form: A-2 (1-2016) | Page 2
_______________________________
I
______________________________
________________________________ _________ _________ -_________
__________________________________________________________________
_____
If yes, what is the current Certificate Number: ___________
Total Number of Affiliate’s California employees to be covered by Group: _____________________
______________ _____AGENCY EMPLOYER __________ ___ ______
Current # of Agency Employees: _________ # of Public Safety Employees (police//fire): _________
If school District, # of certificated employees: _________
Will all Agency employees be covered by this self-insurance plan? Yes No
If ‘No’, explain who is not covered and how workers’ compensation coverage will be provided to the
excluded employees:
5009, 091
048
Douglas Gibb Executive VP, Workers' Compensation
Athens
750 The City Drive South, #350
Orange CA 92868
(925) 826-1283 dgibb@athensadmin.com
1
778
4
4
4
4
Page 806 of 829
______________ _____JOINT POWERS AUTHORITY __________ ___ ______
Will applicant be a member of a JPA for workers’ compensation ?
Yes No (If ‘yes’, complete the following)
Effective date of JPA Membership: JPA Certificate # _
Name of JPA: ________________________________________________________________________
______________ _ _____AGENCY SAFETY PROGRAM __________ ___ ______
Does the Agency have a written Injury and Illness Prevention Program (IIPP)? Yes No
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Form: A-2 (1-2016) | Page 3
____________________ ____________________
Individual responsible for Agency workplace safety and IIPP program:
Name: _____________________________________ Title: _______________________________
Company Name: _________________________________________________________________
Address: ________________________________________________________________________
City: ________________________________ State: __________ Zip + 4: __________ -_________
Phone: _____________________________ E-Mail: ______________________________________
______________ _ _____SUPPLEMENTAL COVERAGE __________ ___ ______
1.) Will your program be supplemented by any insurance or pooled coverage under a STANDARD
workers’ compensation insurance policy? Yes No If ‘Yes’, complete the following): (
Name of Excess Pool/Carrier: ___________________________________________________________
Policy #: _________________________ Effective Date of Coverage: ____________________________
2.) Will your program be supplemented by any insurance or pooled coverage under a SPECIFIC
EXCESS workers’ compensation insurance policy? Yes No (If ‘Yes’, complete the following):
Name of Excess Pool/Carrier: ___________________________________________________________
Policy #: _________________________ Effective Date of Coverage: ____________________________
Retention Limits: _____________________________________________________________________
3.) Will your program be supplemented by any insurance or pooled coverage under an AGGREGATE
EXCESS (stop loss) specific excess workers’ compensation insurance policy?
(If ‘Yes’, complete the following):
Yes No
Name of Excess Pool/Carrier: ___________________________________________________________
Policy #: _________________________ Effective Date of Coverage: ____________________________
Retention Limits: _____________________________________________________________________
07/01/2023 5009
California Joint Powers Insurance Authority
Nickole Domini HR Director
City of San Luis Obispo
990 Palm St
San Luis Obispo
(805) 781-7251 ndomini@slocity.org
Safety National Casualty Corporation
FCS4060465 07/01/2023
Statutory Limits Excess of $2,000,000
4
4
4
4
Page 807 of 829
______________ ____RESOLUTION FROM GOVERNING BOARD ________ ___ ______
Attach a properly executed Governing Board Resolution. See attached sample resolution on page 5.
______________ _ ___ __CERTIFICATION __________ ___ ______
The undersigned on behalf of the applicant hereby applies for a Certificate of
Consent to Self-Insure the payment of workers' compensation liabilities pursuant
to Labor Code Section 3700. The above information is submitted for the purpose
of procuring said Certificate from the Director of Industrial Relations, State of
California. If the Certificate is issued, the applicant agrees to comply with
applicable California statutes and regulations pertaining to the payment of
compensation that may become due to the applicant's employees covered by the
Certificate.
DATE:
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
______________________________________________
______________________________________________
______________________________________________
Form: A-2 (1-2016) | Page 4
X_____________________________________________ __________________________________
SIGNED: Authorized Official / Representative
Printed Name
Title
Agency Name
Erica Stewart
Mayor
City of San Luis Obispo
Page 808 of 829
i
Page 1 of 18
Joint Powers Agreement
California Joint Powers Insurance Authority
Amended July 17, 2019
JOINT POWERS AGREEMENT
CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY
AMENDED JULY 17, 2019
Page 809 of 829
i
TABLE OF CONTENTS
ARTICLE 1 - DEFINITIONS ..................................................................................................................................... 2
ARTICLE 2 - PURPOSES .......................................................................................................................................... 3
ARTICLE 3 - PARTIES TO AGREEMENT ............................................................................................................ 4
ARTICLE 4 - TERM OF AGREEMENT ................................................................................................................. 4
ARTICLE 5 - CREATION OF AUTHORITY ......................................................................................................... 4
ARTICLE 6 - POWERS OF AUTHORITY .............................................................................................................. 4
ARTICLE 7 - BOARD OF DIRECTORS ................................................................................................................. 5
ARTICLE 8 - POWERS OF THE BOARD OF DIRECTORS ............................................................................... 5
ARTICLE 9 - MEETINGS OF THE BOARD OF DIRECTORS ........................................................................... 6
ARTICLE 10 - EXECUTIVE COMMITTEE ........................................................................................................... 6
ARTICLE 11 - POWERS OF THE EXECUTIVE COMMITTEE ........................................................................ 6
ARTICLE 12 - MEETINGS OF THE EXECUTIVE COMMITTEE .................................................................... 7
ARTICLE 13 - CLAIMS COMMITTEE .................................................................................................................. 8
ARTICLE 14 - OFFICERS OF THE AUTHORITY ............................................................................................... 8
ARTICLE 15 - ADVISORY COMMITTEES ........................................................................................................... 9
ARTICLE 16 - COVERAGE ...................................................................................................................................... 9
ARTICLE 17 - DEVELOPMENT OF THE JOINT PROTECTION PROGRAMS ............................................ 9
ARTICLE 18 - ACCOUNTS AND RECORDS....................................................................................................... 10
ARTICLE 19 - RESPONSIBILITY FOR MONIES............................................................................................... 11
ARTICLE 20 - RESPONSIBILITIES OF THE AUTHORITY ............................................................................ 11
ARTICLE 21 - RESPONSIBILITIES OF MEMBERS ......................................................................................... 12
ARTICLE 22 - NEW MEMBERS ............................................................................................................................ 13
ARTICLE 23 - PROGRAM PARTICIPATION ..................................................................................................... 14
ARTICLE 24 - WITHDRAWAL .............................................................................................................................. 15
ARTICLE 25 - EFFECT OF WITHDRAWAL ...................................................................................................... 15
ARTICLE 26 - CANCELLATION OF PROGRAM PARTICIPATION ............................................................ 16
ARTICLE 27 - CANCELLATION OF MEMBERSHIP ....................................................................................... 16
ARTICLE 28 - CANCELLATION FOR NON-PAYMENT .................................................................................. 16
ARTICLE 29 - ATTORNEY FEES AND COSTS OF COLLECTION ............................................................... 17
ARTICLE 30 - TERMINATION AND DISTRIBUTION ..................................................................................... 17
ARTICLE 31 - PROVISION FOR BYLAWS ......................................................................................................... 18
ARTICLE 32 - NOTICES ......................................................................................................................................... 18
ARTICLE 33 – PROVISION FOR MAILED BALLOTS ..................................................................................... 18
ARTICLE 34 - AMENDMENT ................................................................................................................................ 19
ARTICLE 35 - PROHIBITION AGAINST ASSIGNMENT................................................................................. 19
ARTICLE 36 - AGREEMENT COMPLETE ......................................................................................................... 19
Page 810 of 829
Joint Powers Agreement Page 1 of 19 Amended July 17, 2019
JOINT POWERS AGREEMENT
CREATING THE CALIFORNIA
JOINT POWERS INSURANCE AUTHORITY
THIS AGREEMENT is made and entered into by and among the public entities
organized and existing under the Constitution or laws of the State of California, hereinafter
collectively referred to as “Members” and individually as “Member,” that are parties signatory to
this Agreement. Said Members are sometimes referred to herein as “parties.”
RECITALS:
WHEREAS, California Government Code Section 6500 et seq. provides that two or more
public agencies may by agreement jointly exercise any power common to the contracting parties;
and
WHEREAS, California Government Code Section 990.4 provides that a local public
entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance
through a surplus line broker, or any combination of these; and
WHEREAS, California Government Code Section 990.8 provides that two or more local
public entities may, by a joint powers agreement, provide insurance for any purpose by any one
or more of the methods specified in Government Code Section 990.4; and
WHEREAS, each of the parties to this Agreement desires to join together with the other
parties for the purpose of pooling their self-insured losses and jointly purchasing excess
insurance and administrative services in connection with one or more joint protection programs
for said parties; and
WHEREAS, it appears economically feasible and practical for the parties to this
Agreement to do so;
NOW, THEREFORE, for and in consideration of all of the mutual benefits, covenants
and agreements contained herein, the parties hereto agree as follows:
Page 811 of 829
Joint Powers Agreement Page 2 of 19 Proposed July 17, 2019
ARTICLE 1 - DEFINITIONS
The following definitions shall apply to the provisions of this Agreement:
(a) “Advisory Committee” shall mean the Managers Committee, Finance Officers
Committee, Risk Managers Committee and any other committee created by the Board of
Directors or Executive Committee for the purpose of providing specialized advice to the B oard
of Directors or Executive Committee on the subject matter brought before it.
(b) “Alternate” shall mean that person or persons selected by the legislative body of
each Member to represent the Member at the Board of Directors meeting in the absence of the
Director, pursuant to Article 7 of this Agreement.
(c) “Authority” shall mean the California Joint Powers Insurance Authority created
by this Agreement.
(d) “Board of Directors” or “Board” shall mean the governing body of the Authority.
(e) “Chief Executive Officer” shall mean that employee of the Authority who is
appointed by the Executive Committee, and is granted authority and responsibility for the
management and administration of the Authority and its joint protection programs.
(f) “Claims” shall mean demands made against the Authority, a Member, or
Members arising out of occurrences that are within an Authority joint protection program as
developed by the Executive Committee.
(g) “Contribution” shall mean an amount determined by the Executive Committee
that is to be paid by the Member as its established share of funding required to cover the
financial obligations of each joint protection program in which the member participates.
(h) “Director” shall mean that person selected by and from the legislative body of
each Member to represent the Member on the Board of Directors pursuant to Article 7 of this
Agreement.
(i) “Executive Committee” shall mean the Executive Committee of the Board of
Directors of the Authority.
(j) “Finance Officers Committee” shall mean the committee of the Authority
composed of the Finance Directors or chief finance officers of the Members by whatever title
locally designated.
(k) “Fiscal Year” shall mean that period of twelve months that is established as the
fiscal year of the Authority.
Page 812 of 829
Joint Powers Agreement Page 3 of 19 Proposed July 17, 2019
(l) “Insurance” shall mean and include pooled self-insurance through a funded
program and/or any commercial insurance, excess insurance, or reinsurance contract purchased
on behalf of the Authority to protect the funds of the Authority against catastrophes or an
unusual frequency of losses during a specific protection period.
(m) “Managers Committee” shall mean the committee of the Authority composed of
the City Managers, City Administrators, or chief executive officers of the Members by whatever
title locally designated.
(n) “Risk Managers Committee” shall mean the committee of the Authority
composed of the Risk Managers or risk officers of the Members by whatever title locally
designated.
(o) “Secretary” shall mean the person selected by the Executive Committee from
among its members to serve as Secretary of the Authority.
(p) “Treasurer” shall mean the person selected by the Executive Committee to serve
as Treasurer of the Authority.
ARTICLE 2 - PURPOSES
This agreement is entered into by the Members pursuant to the provisions of California
Government Code Sections 990, 990.4, 990.8, and 6500 et seq. in order to provide more
comprehensive and economical protection from financial loss, to reduce the amount and
frequency of their losses, and to decrease the cost incurred in the handling and litigation of
claims. This purpose shall be accomplished through the exercise of the powers of the Members
jointly in the creation of a separate entity, the California Joint Powers Insurance Authority (the
Authority), to administer joint protection programs wherein Members will pool their losses and
claims, jointly purchase insurance and administrative and other services, including claims
adjusting, data processing, risk management consulting, loss prevention, training, legal, and
related services.
It is also the purpose of this Agreement to provide, to the extent permitted by law, for the
inclusion at a subsequent date of such additional public entities organized and existing under the
Constitution or laws of the State of California as may desire to become parties to this Agreement .
Page 813 of 829
Joint Powers Agreement Page 4 of 19 Proposed July 17, 2019
ARTICLE 3 - PARTIES TO AGREEMENT
Each party to this Agreement certifies that it intends to and does contract with all other
parties who are signatories of this Agreement and, in addition, with such other parties as may
later be added as parties to and signatories of this Agreement pursuant to Article 22. Each party
to this Agreement also certifies that the deletion of any party from this Agreement, pursuant to
Articles 24, 26, 27, or 28 shall not affect this Agreement nor such party's intent to contract as
described above with the other parties to the Agreement then remaining.
ARTICLE 4 - TERM OF AGREEMENT
This Agreement became effective on June 29, 1977, and shall continue until and unless
terminated as hereinafter provided.
ARTICLE 5 - CREATION OF AUTHORITY
Pursuant to Section 6500 et seq. of the California Government Code, there is hereby
created a public entity separate and apart from the parties hereto, to be known as the California
Joint Powers Insurance Authority. Pursuant to Government Code Section 6508.1, the debts,
liabilities and obligations of the Authority shall not constitute debts, liabilities or obligations of
any party to this Agreement; except with respect to public retirement system liabilities, which
shall be governed by Sections 6508.1 and 6508.2.
ARTICLE 6 - POWERS OF AUTHORITY
(a) The Authority shall have the powers common to its Members and is hereby
authorized to do all acts necessary for the exercise of said common powers, including, but not
limited to, any or all of the following:
1. To make and enter into contracts;
2. To incur debts, liabilities or obligations;
3. To acquire, hold or dispose of property, contributions and donations of
property, funds, services and other forms of assistance from persons,
firms, corporations and governmental entities;
4. To sue and be sued in its own name; and
5. To exercise all powers necessary and proper to carry out the terms and
provisions of this Agreement, or otherwise authorized by law.
Page 814 of 829
Joint Powers Agreement Page 5 of 19 Proposed July 17, 2019
(b) Said powers shall be exercised pursuant to the terms hereof and in the manner
provided by law and are subject to the restrictions upon the manner of exercising the powers of
the City of Lakewood.
ARTICLE 7 - BOARD OF DIRECTORS
(a) The Authority shall be governed by the Board of Directors that is hereby
established and that shall be composed of one representative Director from each Member, who
shall be selected from the legislative body of that Member by the process chosen by the Member.
(b) Each legislative body, in addition to appointing its Director of the Board, shall
appoint at least one alternate who shall be an officer or employee of the Member. The alternate
shall have the authority to attend, participate in, and vote at any meeting of the Board when the
regular Director for whom he or she is an alternate is absent from said meeting.
ARTICLE 8 - POWERS OF THE BOARD OF DIRECTORS
The Board of Directors of the Authority shall have the following powers and functions:
(a) The Board shall elect from its members pursuant to Article 10 of this Agreement
an Executive Committee, to which it may give authority to make and implement any decisions,
including those involving the administration of the Authority, except those decisions that would
require an amendment of this Agreement, under Article 34 herein.
(a) The Board shall adopt the operating budget of the Authority.
(b) The Board may review all acts of the Executive Committee, including
development of the memoranda of coverage, and shall have the power to modify and/or override
any decision or action of the Executive Committee upon a majority vote of a quorum of the
Board of Directors.
(c) The Board shall receive and review periodic accountings of all funds under
Articles 18 and 19 of this Agreement.
(d) The Board shall have the power to conduct on behalf of the Authority all business
of the Authority, including that assigned to the Executive Committee, that the Authority may
conduct under the provisions hereof and pursuant to law.
(e) The Board shall have such other powers and functions as are provided for in this
Agreement.
Page 815 of 829
Joint Powers Agreement Page 6 of 19 Proposed July 17, 2019
(f) The Board shall not have the power to overturn the decisions of the Claims
Committee in regard to the settlement of claims.
ARTICLE 9 - MEETINGS OF THE BOARD OF DIRECTORS
(a) Meetings. The Board shall provide for its regular, adjourned regular, and special
meetings; provided, however, that it shall hold at least one regular meeting annually at a time and
place determined by the Executive Committee.
(b) Minutes. The Secretary of the Authority shall cause minutes of regular, adjourned
regular, and special meetings to be kept and shall, as soon as possible after each meeting, cause a
copy of the minutes to be forwarded to each member of the Board.
(c) Quorum. A majority of the Directors or Alternates of the Board shall constitute a
quorum for the transaction of business, except that less than a quorum may adjourn from time to
time. A vote of the majority of those Directors or Alternates present at a meeting shall be
sufficient to constitute action by the Board.
(d) Compliance with the Brown Act. All meetings of the Board, including, without
limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and
conducted in accordance with the provisions of the Ralph M. Brown Act, California Government
Code Section 54950 et seq.
ARTICLE 10 - EXECUTIVE COMMITTEE
There shall be an Executive Committee of the Board of Directors that shall consist of
nine (9) members. Two of the members of the Executive Committee shall be the President and
Vice President of the Board of Directors. The other members of the Executive Committee shall
be elected by the Board of Directors at the Annual Meeting for the terms provided in the Bylaws.
The President of the Authority, or the Vice President in his or her absence, shall serve as the
Chairperson of the Executive Committee.
ARTICLE 11 - POWERS OF THE EXECUTIVE COMMITTEE
The Executive Committee of the Board of Directors shall have the following powers:
(a) The Executive Committee shall determine and select joint protection program s for
the Authority including adoption of language of the Memoranda of Coverage and any limitations
or endorsements to such Memoranda.
Page 816 of 829
Joint Powers Agreement Page 7 of 19 Proposed July 17, 2019
(b) The Executive Committee shall determine and select all insurance necessary to
carry out the joint protection programs of the Authority.
(c) The Executive Committee shall have the authority to approve membership in the
Authority and Member participation in one or more joint protection programs in accordance with
Articles 22 and 23.
(d) The Executive Committee shall have the authority to cancel Memb er participation
in one or more joint protection programs in accordance with Articles 26 and 28.
(e) The Executive Committee shall develop the operating budget of the Authority.
(f) The Executive Committee shall have authority to contract for or develop various
services for the Authority, including, but not limited to, claims adjusting, loss control, and risk
management consulting services.
(g) The Executive Committee shall receive and act upon reports of the Advisory
Committees and the Chief Executive Officer.
(h) The Executive Committee shall appoint the Treasurer and Chief Executive Officer
of the Authority.
(i) The Executive Committee shall have the power to hire such persons as the
Executive Committee deems necessary for the administration of the Authority.
(j) The Executive Committee shall have the general supervisory and policy control
over the day-to-day decisions and administrative activities of the Chief Executive Officer of the
Authority.
(k) The Executive Committee shall have such other powers and functions as are
provided for in this Agreement or as delegated by the Board of Directors, including the power to
create committees it deems necessary.
ARTICLE 12 - MEETINGS OF THE EXECUTIVE COMMITTEE
The meetings of the Executive Committee shall be held and conducted in the same
manner as the meetings of the Board of Directors, provided for in Article 9 of this Agreement.
In addition, the Committee shall make periodic reports to the Board of Directors , advising the
Board of its decisions and activities concerning the implementation of the joint protection
programs of the Authority.
Page 817 of 829
Joint Powers Agreement Page 8 of 19 Proposed July 17, 2019
ARTICLE 13 - CLAIMS COMMITTEE
The Executive Committee members, together with the Chairs of the Managers Committee
and the Finance Officers Committee, shall sit as the Claims Committee of the Authority. The
Claims Committee shall have authority to make all determinations regarding defense, indemnity,
and settlement of claims under the Memoranda of Coverage. Decisions of the Claims
Committee regarding settlement of claims shall be final and not subject to further review.
Decisions regarding coverage for defense or indemnity of claims shall be final, but subject to the
Member’s appeal rights as detailed in the applicable Memorandum of Coverage.
ARTICLE 14 - OFFICERS OF THE AUTHORITY
(a) President and Vice President. The Board shall elect a President and Vice
President of the Authority, each to hold office for a two-year term, except as hereinafter
provided, and until a successor is elected. The election of the President and Vice President shall
be on alternate years. In the event the President so elected ceases to be a member of the Board,
or for other reasons is unable to serve, the Vice President shall assume the position of P resident
and serve the remainder of the prior President’s unexpired term. In the event the Vice President
so elected ceases to be a member of the Board, or for other reasons is unable to serve, the
Executive Committee shall select from among its membership a new Vice President who shall
serve the remainder of the unexpired term.
(b) Chief Executive Officer. The Chief Executive Officer shall be authorized and
responsible for the overall management and administration of the Authority and its joint
protection programs and shall select and appoint all employees.
(c) Secretary. The Secretary shall be responsible for all minutes, notices and records
of the Authority and shall perform such other duties as may be assigned by the Executive
Committee.
(d) Treasurer. The duties of the Treasurer are set forth in Articles 18 and 19 of this
Agreement.
(e) Attorney. The Executive Committee shall select an attorney for the Authority.
The attorney shall serve at the pleasure of the Executive Committee.
(f) The Executive Committee shall have the power to appoint such other officers as
may be necessary in order to carry out the purposes of this Agreement.
Page 818 of 829
Joint Powers Agreement Page 9 of 19 Proposed July 17, 2019
ARTICLE 15 - ADVISORY COMMITTEES
The Board of Directors or Executive Committee may establish Advisory Committees as deemed
necessary. Such Committees shall meet from time to time as deemed necessary by them, and
shall make recommendations to the Executive Committee based upon their expertise.
ARTICLE 16 - COVERAGE
(a) The coverage provided for Members through the Authority’s joint protection
programs may include protection for Personal Injury, Errors and Omissions, Contractual and
Comprehensive Liability, Workers’ Compensation and such other areas of coverage as the
Executive Committee may determine. Such coverage may be through insurance as defined in
Article 1.
(b) The Authority shall maintain limits of coverage for Members determined by the
Executive Committee to be adequate. The Executive Committee may arrange for a group policy
to be issued for Members interested in obtaining additional coverage above the limits of
coverage at an additional cost to those participating Members.
(c) The Executive Committee shall arrange for the purchase of insurance it deems
necessary to protect the funds of the Authority against catastrophes. The Executive Committee
shall have the authority to discontinue purchase of this insurance, if at a future time the
Executive Committee determines that it is no longer needed to protect the Authority's funds.
ARTICLE 17 - DEVELOPMENT OF THE JOINT PROTECTION PROGRAMS
(a) The joint protection programs provided by the Authority shall extend to agencies
or authorities as determined in the Memorandum of Coverage of each program.
(b) The cost allocation formula for each joint protection program shall be adopted by
the Executive Committee.
(c) The contribution for each Member’s participation in a joint protection program
shall be determined by the Executive Committee.
(d) The cost allocation formula adopted by the Executive Committee for each joint
protection program may provide for retrospective adjustments, and each Member shall pay any
additional contribution required by such retrospective adjustment.
Page 819 of 829
Joint Powers Agreement Page 10 of 19 Proposed July 17, 2019
(e) The Executive Committee may provide for payment of a portion of such
contributions to be made over a period of time on terms set by the Executive Committee.
(f) The Executive Committee may expand the Authority's offerings of joint
protection programs to make available for Members’ protection in addition to that which is
provided for in this Agreement.
(g) Contributions held by the Authority for each joint protection program shall be
accounted for separately, so that only Members participating in the program will share in pooled
losses and expenses of that program. This separate accounting shall not prohibit the Authority
from commingling contributions for purposes of investment, nor from paying losses or expenses
when due from all available funds. As deemed appropriate, the Executive Committee may
provide for inter-program transfers in the forms of loans, letters of credit, or other financial
arrangements that stipulate that the lending program will be made whole by the borrowing
program through the timely repayment of principal and compensation for the value of lost
investment earnings during the financing period.
ARTICLE 18 - ACCOUNTS AND RECORDS
(a) Budget. The Authority shall adopt an operating budget, pursuant to Article 11(e)
of this Agreement.
(b) Funds and Accounts. The Treasurer of the Authority shall establish and maintain
such funds and accounts as may be required by good accounting practice or by the Executive
Committee. Books and records of the Authority in the hands of the Treasurer shall be open to
any inspection at all reasonable times by representatives of a Member.
(c) Treasurer's Report. The Treasurer, within 270 days after the close of each fiscal
year, shall give a complete written report of all financial activities for such fiscal year to the
Board and to each Member.
(d) Annual Audit. The Executive Committee shall provide for a certified, annual
audit of the accounts and records of the Authority. The audit shall conform to generally accepted
auditing standards. When such an audit of the accounts and records is made by a Certified
Public Accountant, a report thereof shall be filed as a public record with each of the Members.
Such report shall be filed within nine months of the end of the year under examination.
Page 820 of 829
Joint Powers Agreement Page 11 of 19 Proposed July 17, 2019
(e) Costs. Any costs of the audit, including contracts with, or employment of,
Certified Public Accountants, in making an audit pursuant to this Article, shall be borne by the
Authority and shall be considered included within the term “administrative costs.”
ARTICLE 19 - RESPONSIBILITY FOR MONIES
(a) The Treasurer of the Authority shall have the custody of and disburse the
Authority's funds. He or she shall have the authority to delegate th e signatory function of
Treasurer to such persons as are authorized by the Executive Committee.
(b) A bond or other insurance protection providing coverage for embezzlement or
other criminal acts in an amount determined by the Executive Committee to be adequate shall be
required of all officers and personnel authorized to disburse funds of the Authority. The cost of
such bond or insurance protection shall be paid for by the Authority.
(c) The Treasurer of the Authority shall perform the duties described in California
Government Code Sections 6505.5 and 6505.6 pertaining to the receipt, safekeeping, payment,
and reporting of Authority funds.
ARTICLE 20 - RESPONSIBILITIES OF THE AUTHORITY
The Authority shall perform the following functions in discharging its respons ibilities
under this Agreement:
(a) Provide loss protection as necessary, through various means including but not
limited to insurance or other financial risk transfer, by negotiation or bid and purchase.
(b) Assist Members in obtaining coverage for risks not included within the joint
protection programs of the Authority.
(c) Assist each Member’s assigned risk manager with the implementation of that
function within the Member.
(d) Provide loss prevention and safety and consulting services to Members as
required, which may include programs for grants or loans to Members for loss prevention or
safety purposes.
(e) Provide claims adjusting and subrogation services for claims covered by the
Authority's joint protection programs.
Page 821 of 829
Joint Powers Agreement Page 12 of 19 Proposed July 17, 2019
(f) Provide loss control and analysis by the use of statistical analysis, data processing,
and record and file keeping services, in order to identify high exposure operations and to
evaluate proper levels of self-retention and deductibles.
(g) Provide contract review when requested by Members to determine sufficiency of
indemnity and insurance provisions.
(h) Conduct risk management evaluations of each Member to encourage
implementation of best risk management practices.
(i) The Authority shall have standing and shall pursue recovery in its own name or in
the name of a Member for losses covered by a joint protection program. Such recovery may be
through subrogation, cross complaint, or salvage, as appropriate.
(j) The Authority shall have such other responsibilities as deemed necessary by the
Board of Directors or Executive Committee in order to carry out the purposes of this Agreement.
ARTICLE 21 - RESPONSIBILITIES OF MEMBERS
Members shall have the following responsibilities:
(a) The legislative body of each Member shall appoint a representative and at least
one alternate representative to the Board of Directors, pursuant to Article 7 of this Agreement.
(b) Each Member shall appoint an employee to be responsible for the risk
management function of that Member, and to serve as a liaison between the Member and the
Authority as to risk management.
(c) Each Member shall maintain an active safety officer and/or committee, and shall
consider all recommendations of the Authority concerning unsafe practices or exposures.
(d) Each Member shall pay its contribution and any retrospective adjustment
promptly to the Authority when due. After withdrawal or termination, each Member shall pay
promptly to the Authority its share of any additional contribution, when and if required of it by
the Executive Committee under Articles 24, 25, 26, 27, and 28 of this Agreement.
(e) Each Member shall report all claims to the Authority in accordance with the
policies and procedures governing the joint protection program to which the claim applies.
(f) Each Member shall provide the Authority with such other information or
assistance as may be necessary for the Authority to carry out the joint protection programs under
this Agreement.
Page 822 of 829
Joint Powers Agreement Page 13 of 19 Proposed July 17, 2019
(g) Each Member shall cooperate with and assist the Authority in the pursuit of
recoveries for losses covered by a joint protection program, including assigning its right to
recover subrogated amounts, and if necessary, executing a written agreement to effect such
assignment.
(h) Each Member shall in any and all ways cooperate with and assist the Authority,
and any insurer of a joint protection program, in all matters relating to this Agreement and
covered losses, and will comply with all bylaws, rules and regulations adopted by the Board of
Directors and Executive Committee.
(i) Each Member shall actively participate in the Authority’s Risk Management
Evaluation and Loss Control Action Plan (LossCAP) programs.
ARTICLE 22 - NEW MEMBERS
The Authority shall allow entry of new Members approved by the Executive Committee.
(a) Executive Committee approval for new Members shall be according to the
following procedure:
1. Investigation of each potential member by Authority staff and preparation
of a report;
2. Review of the report by the Underwriting Committee, which shall then be
forwarded to all Directors for review and comment;
3. Review by the Directors and submittal of comments to the Chief
Executive Officer during the comment period; and
4. Approval by a two-thirds vote of the Executive Committee.
(b) Membership is effective immediately upon approval by the Executive Committee
and execution of this Agreement by the new Member to join the Authority.
(c) A Member entering under this Article may be required to pay its share of
organization expenses as determined by the Executive Committee including those necessary to
analyze its loss data and determine its contributions.
(d) Should the Board of Directors rescind the membership approval made by the
Executive Committee pursuant to Article 8(b), the Member shall be given at least ninety days
advance notice of the effective date of termination of Membership, and the Member shall be
Page 823 of 829
Joint Powers Agreement Page 14 of 19 Proposed July 17, 2019
treated as if it had withdrawn on the effective date, and shall have the same responsibilities as if
the Member had voluntarily withdrawn on the effective date.
(e) New Members, accepted into membership after July 1, 2016, shall have
provisional membership status throughout the initial five years of membership. During the
provisional membership period:
1. The Authority reserves the right to retrospectively adjust the cost of
coverage for provisional Members based on actual claims development, in
the event that it varies materially from claims data provided to the
Authority at the time of the initial underwriting; and
2. The Authority reserves the right to terminate membership of any
provisional Member at the end of a protection period , with or without
cause, by a two-thirds vote of the Executive Committee, provided the
Executive Committee gives the provisional Member at least ninety days
advance notice of the effective date of the termination of membership.
3. A provisional Member subject to termination under Paragraph 2, above,
may appeal said termination to a panel of five chief executives randomly
selected from the other Members.
(f) If a provisional Member does not complete five successive years of membership
in good standing, due to withdrawal or termination, that provisional Member is not eligible to
receive in any refunds, dividends, or equity distributions that may occur during the provisional
membership period or at any time thereafter.
ARTICLE 23 - PROGRAM PARTICIPATION
The Authority shall allow for the participation of Members in the joint protection
programs as approved by the Executive Committee.
(a) Executive Committee approval for new Members shall be according to the
following procedure:
1. Investigation of a potential participant by Authority staff and preparation
of a report;
2. Consideration of the report by the Underwriting Committee with a
recommendation to the Executive Committee; and
Page 824 of 829
Joint Powers Agreement Page 15 of 19 Proposed July 17, 2019
3. Approval by a two-thirds vote of the Executive Committee,
(b) Program participation is effective immediately upon approval by the Executive
Committee and execution of appropriate resolutions and/or other documents by the new
participant allowing participation in the joint protection program.
(c) A Member entering into a joint protection program may be required to pay its
share of program development expenses as determined by the Executive Committee including
those necessary to analyze its loss data and determine its contributions.
(d) Should the Board of Directors rescind the program participation approval made
by the Executive Committee pursuant to Article 8(b), the Member shall be given at least ninety
days advance notice of the effective date of termination of program participation, and the
Member shall be treated as if it had withdrawn on the effective date, and shall have the same
responsibilities as if the Member had voluntarily withdrawn on the effective date.
ARTICLE 24 - WITHDRAWAL
(a) A Member that enters into this Agreement may not withdraw as a party to this
Agreement and as a Member of the Authority for a three-year period commencing on the
effective date of its membership.
(b) A Member that enters into a joint protection program may not withdraw as a
participant in that program for a three-year period commencing on the effective date of its
participation in the joint protection program.
(c) After the initial three-year non-cancellable commitment to membership in the
Authority or participation in a joint protection program, a Member may withdraw only at the end
of any protection period, provided it has given the Authority a twelve-month written notice of its
intent to withdraw from this Agreement and/or any joint protection programs in which it
participates.
ARTICLE 25 - EFFECT OF WITHDRAWAL
(a) The withdrawal of any Member from this Agreement shall not terminate the
Agreement, and no Member by withdrawing shall be entitled to payment or return of an y
deposits, contributions, consideration or property paid, or donated by the Member to the
Authority, or to any distribution of assets.
Page 825 of 829
Joint Powers Agreement Page 16 of 19 Proposed July 17, 2019
(b) The withdrawal of any Member from participation in a joint protection program
shall not terminate the Member’s responsibility to contribute its share of contributions or funds
to the program until all claims, or other unpaid liabilities, covering the period the Member was
signatory hereto have been finally resolved and a determination of the final amount of payments
due from the Member or credits to the Member for the period of its participation has been made
by the Executive Committee. In connection with this determination, the Executive Committee
may exercise similar powers to those provided for in the Article 30(c) of this Agreement.
ARTICLE 26 - CANCELLATION OF PROGRAM PARTICIPATION
The Executive Committee shall have the right to cancel any Member’s par ticipation in one or
more joint protection programs upon the recommendation of the Chief Executive Officer and in
accordance with the Healthy Members Practices and Procedures protocol. Any Member so
cancelled shall on the effective date of the cancellation be treated the same and shall have the
same responsibilities as if the Member had voluntarily withdrawn from the joint protection
program.
ARTICLE 27 - CANCELLATION OF MEMBERSHIP
The Board of Directors shall have the right to cancel the membership of any Member
based upon a three-fourths vote of the entire Board of Directors. Any Member so cancelled shall
on the effective date of the cancellation be treated the same as if the Member had voluntarily
withdrawn from membership, and said Member shall have the same responsibilities.
Cancellation, as specified above, shall be within the sole discretion of the Board of Directors and
may occur with or without cause, and the Board's discretion shall not be subject to any further
review or appeal.
ARTICLE 28 - CANCELLATION FOR NON-PAYMENT
In the absence of a payment plan as authorized in Article 17(e), any Member’s
participation in a joint protection program may be cancelled automatically in the event of a
failure of the Member to pay any contribution as required in this Agreement. Should any
contribution remain unpaid more than thirty (30) days after receipt of notice by the Member, the
Authority will send a notice advising the Member that it is in default under the terms of this
Agreement, and that the Member’s participation will be cancelled within thirty (30) additional
Page 826 of 829
Joint Powers Agreement Page 17 of 19 Proposed July 17, 2019
days unless full payment is received. Failure to make full payment as required in the notice of
default shall be considered a withdrawal by the Member from the program effective on the date
of cancellation specified in the notice of default; and no coverage shall apply to any claims
submitted subsequent to the effective date of cancellation that arise from occurrences taking
place during the current protection period. A Member cancelled for non-payment shall remain
liable for a prorated share of the current year’s contribution and for all retrospective adjustment
contributions through the date of cancellation and attributable to prior years of coverage in which
it participated.
ARTICLE 29 - ATTORNEY FEES AND COSTS OF COLLECTION
Should any Member or former Member fail to pay any contribution or retrospective
adjustment contribution when due, the Member shall also be liable to the Authority for attorney
fees and costs incurred by the Authority in pursuing collection of such sums .
ARTICLE 30 - TERMINATION AND DISTRIBUTION
(a) This Agreement may be terminated by the written consent of three-fourths of the
Members; provided, however, that this Agreement and the Authority shall continue to exist for
the purpose of disposing of all claims, distribution of assets and all other functions necessary to
wind up the affairs of the Authority.
(b) Upon termination of this Agreement, all assets of the Authority shall be
distributed only among the parties that have been Members of a joint protection program,
including any of those parties that previously withdrew pursuant to Article 24 of this Agreement,
in accordance with and proportionate to their cash (including contributions) payments and
property (at market value when received) contributions made reduced by their share of losses and
expenses paid during the term of this Agreement. The Executive Committe e shall determine
such distribution within six months after the last pending claim or loss covered by this
Agreement has been finally disposed of.
(c) The Executive Committee is vested with all powers of the Authority for the
purpose of winding up and dissolving the business affairs of the Authority. These powers shall
include the power to require Members, including those that were Members at the time a claim
arose or at the time a loss was incurred, to pay their share of any additional amount of
Page 827 of 829
Joint Powers Agreement Page 18 of 19 Proposed July 17, 2019
contribution deemed necessary by the Executive Committee for final disposition of all claims
and losses covered by this Agreement. A Member’s share of such additional contributions shall
be determined on the same basis as that provided for annual contributions in Article 17 of this
Agreement, and shall be treated as if it were the next year's annual contribution for that Member.
(d) In the absence of an Executive Committee, the Secretary shall exercise all powers
and authority under this Article. The decision of the Executive Committee or Secretary under
this Article shall be final.
(e) A provisional Member that does not complete five years of membership pursuant
to Article 22 shall not be entitled to any distribution of assets upon termination of this
Agreement.
ARTICLE 31 - PROVISION FOR BYLAWS
The Board shall cause to be developed Authority Bylaws. Each Member shall receive a
copy of any Bylaws developed under this Article.
ARTICLE 32 - NOTICES
Notices to Members hereunder shall be sufficient if delivered to the administrative office
of the respective Member. Delivery may be by U.S. Mail, email, or other form of notice
acceptable under the Ralph M. Brown Act.
ARTICLE 33 – PROVISION FOR MAILED BALLOTS
Unless specifically prohibited elsewhere within this Agreement or the Bylaws, all actions
contemplated by the Board of Directors may be voted on by the Members by mailed ballot as
defined in the Bylaws. This shall not include the election of officers or members of the
Executive Committee. Actions taken by mailed ballot shall require the same percentage of votes
cast by the entire Membership as the percentage that would be required of a quorum voting on an
item at a Board of Directors meeting.
Page 828 of 829
Joint Powers Agreement Page 19 of 19 Proposed July 17, 2019
ARTICLE 34 - AMENDMENT
With the exception of Article 27, this agreement may be amended by two-thirds vote of
the Directors present at a duly held Board of Directors meeting, or by a two -thirds vote of
the Membership for an amendment placed before the Membership by mailed ballot. Amendment
to Article 27 shall require a three-fourths vote of the entire Board of Directors at a duly held
Board of Directors meeting, or by a three-fourths vote of the Membership for an amendment
placed before the Membership by mailed ballot.
ARTICLE 35 - PROHIBITION AGAINST ASSIGNMENT
With the exception of Article 21 (g), no Member may assign any right, claim or interest it
may have under this Agreement, and no creditor, assignee or third party beneficiary of any
Member shall have any right, claim or title to any part, share, interest, fund, contribution, or asset
of the Authority.
ARTICLE 36 - AGREEMENT COMPLETE
The foregoing constitutes the full and complete Agreement of the parties. There are no
oral understandings or agreements not set forth in writing herein.
IN WITNESS WHEREOF, the parties hereto have first executed this Agreement by
authorized officials thereof on the date indicated below.
Date:
MEMBER:
By:
Page 829 of 829
Strategic Budget Direction for the 2023-25
Financial Plan
April 18, 2023
Review draft budgets, Major City Goal work programs, Significant Operating Budget Changes, Capital
Improvement Plan
1
City Manager Message
The Art of the Longview
•Good Financial Position
•Fiscal Health Contingency Plan-Timing
•Requires Disciplined Focus (Culture of Discipline)
•Can be complex when everything seems both “urgent” and “necessary”
•Major City Goals
•Combination of “wicked problems”
•Confront Brutal Challenges
•Systemic and Structural Racism and Inequalities
•Climate Crisis
•Housing/Homelessness
•Economic Disruptions/Headwinds/Uncertainty
•Civic understanding and Community
engagement are critical
•Balancing expectations with resources
•Forecast shows inflation is having an impact on costs and revenues not keeping
pace.
2
Recommendations
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 6, 2023.
3.Authorize participation in the Excess Protection Program (EPP) for workers’
compensation coverage.
Major City Goal work
programs
General Fund/LRM
Overview
Enterprise Funds
Overview
Capital
Improvement Plan
Recommendation
# 3: Workers’
Comp
Presentation Outline
3
4FOCUSED QUESTIONS FOR COUNCIL
1.Do the major city goal work programs include tasks, budget and timing to address Council and
community expectations?
2.Does the CIP include projects and budget allocations to address Council and community budget
priorities and previous commitments?
3.Does the Council support the REOC recommendations and determine that the proposed uses for
capital and operations fit into the priorities as identified by the community?
4.Is the Council direction on changes to the budget that need to be made before the June 6, 2023
hearing?
5.What comments does the Council want to make at this time on the proposed rate changes for
Water and Sewer funds?
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
5
Major City Goals Overview
Continuation of any unfinished or ongoing efforts from 2021-23
Work programs focus on goals that have a clear deliverable or are
new work efforts
Many ongoing/operational programs were moved into departmental
“core services”
Changes in the way budget is quantified
Anything requiring new resources identified
Budget Document Pg. 46
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
6
Economic Resiliency, Cultural Vitality & Fiscal
Sustainability
Expectations and Outcomes:
➢Engage and expand community partnerships and invest in infrastructure, and efforts that
support the economic resiliency and cultural vitality of the community
➢Ensuring fiscal sustainability
➢Focus on retention and expansion of existing businesses, the vitality of arts and culture, the
vitality of downtown, and supporting underserved groups and populations
➢All actions will be viewed through the lens of the City’s sustainability and DEI efforts
Budget Document Pg. 4
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
7
Diversity, Equity, and Inclusion (DEI)
Expectations and Outcomes:
➢Develop and implement strategies, programs and policies that build a workplace culture and
community of inclusion, fairness,and belonging for all
➢Involve underserved/underrepresented communities and diverse voices in program development and
delivery to ensure current lived experiences drive understanding, priorities, and efforts
➢Partner with proven community providers and utilize best practice models to leverage City resources
and to maximize effectiveness and impact of initiatives
➢Identify and track measurable results as the City progresses in maturing diversity and inclusion efforts
Budget Document Pg. 8
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
8
Housing and Homelessness
Expectations and Outcomes:
➢Prioritize new and ongoing Housing Element policies and programs that focus on facilitating the
increased production of housing
➢Implement the Homelessness Response Strategic Plan
➢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
➢Clean up creeks, open space areas, City Parks and public spaces associated with abandoned
personal property and trash
➢Focus on public safety through support for the SLO PD bike patrol program, Community Service
Officer program, and the Mobile Crisis Unit
Budget Document Pg. 13
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
9
Climate Action, Open Space, and Sustainable Transportation
Expectations and Outcomes:
➢Transition from planning to implementation of various programs:
➢Leverage historic federal and state funding opportunities for local climate mitigation and
adaptation in order to achieve Council’s goal of community-wide carbon neutrality by 2035 and
municipal carbon neutrality by 2030.
➢Implement work programs with an equity and justice lens,ensuring that the City’s climate and
resilience solutions support quality-of-life improvements in alignment with the DEI goal.
❖Climate Adaptation and Safety Element of General Plan
❖Climate Action Plan Update
❖Lead by Example Plan
❖Community Forest Plan
❖Open Space Conservation Plans
❖Active Transportation Plan
❖City Facility and Fleet Electrification Roadmaps
❖Transit Innovation Study
Budget Document Pg. 18
10General Fund Revenue Sources
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
Measure G-20
27%
General Sales &
Use Tax
21%
Property Tax
20%
Transient
Occupancy Tax
9%
Utility Users Tax
5%
Other Taxes
5%
Development Review
6%
Other Fees and Revenue
7%
11General Fund Operating Uses
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
Police ($21.9 M)
Public Works ($17.5 M)
Fire ($15.3 M)
Administration & IT ($10.2 M)
Community Development ($7.6 M)
Parks and Recreation ($5.6 M)
Finance ($2.4 M)
Human Resources ($1.9 M)
City Attorney ($1.4 M)
NonDepartmental/Support Services ($1.4 M)
Community Services Group Administration
($740k)
Solid Waste ($340k)
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
12City Services
2023-24 General Fund
Base Budget =
$86,214,647
Budget Document Pg. 25
13General Fund Budget Recommendations
By Funding Source
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
General Fund
Ongoing
•Based on updated
revenue forecasts
•Mission critical for
ongoing core
services
•Approximately
$500,000 annually
General Fund One-
time
•Requires tradeoff
with CalPERS
$1.3M ADP and
some projected year
end balance
•One-time in nature
•Most are MCG
related
•Approximately $1.47M
(2 years combined)
Economic
Development
Funding
•Use of designated
fund balance
•Direct nexus with
Economic
Development
•Approximately
$400,000 annually
Other Funding
Sources
•Affordable Housing,
Public Art and IT
Replacement Funds
•One-time in nature
•Direct nexus with
specific funding
source
•Approximately
$600,000 (2 years
combined)
Budget Document Pg. 28
14
SOBCs by Major City Goal
MCG/ Title Proposed Funding Source 2023-24 2024-25
Economic Resiliency, Cultural Vitality & Fiscal Sustainability 606,000$ 556,000$
Buy Local and Eat Local Bonus* (MCG 1.2a)Economic Development Funding 125,000$ 125,000$
Childcare Grants* (MCG 2.8d)Economic Development Funding 25,000$ 25,000$
Community Activations* (MCG 1.4e)Economic Development Funding 75,000$ 75,000$
EDD/Beacon Data* (MCG 1.2e)Economic Development Funding 11,000$ 11,000$
EDSP Implementation* (MCG 1.1a)Economic Development Funding 75,000$ 75,000$
Exploration of a Potential Stormwater Utility*General Fund One-time 10,000$ 10,000$
Historic Resources Inventory* (MCG 1.4g)General Fund One-time 100,000$ 150,000$
La Loma Adobe Rehabilitation (Phase I)* (MCG 1.4f)General Fund One-time 100,000$ -$
Shop Local Business Promotion * (MCG 1.2a)Economic Development Funding 85,000$ 85,000$
DEI 20,000$ 25,000$
Youth Programs Scholarship Funds (MCG 2.8d)General Fund Ongoing 20,000$ 25,000$
Housing & Homelessness 305,000$ 350,000$
Below Market Rate Administrator*Affordable Housing Fund 150,000$ 150,000$
Hotel Voucher Program - CAPSLO* (MCG 3.2a)General Fund One-time 25,000$ -$
Margarita Area Specific Plan Update*General Fund One-time 100,000$ 200,000$
Safe Parking (Location TBD)* (MCG 3.2d)General Fund One-time 30,000$ -$
Climate Action 50,000$ 50,000$
10 Tall Tree Planting Implementation* (MCG 4.2g)General Fund One-time 50,000$ 50,000$
Total 981,000$ 981,000$
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
15
SOBCs -Core Services
Department Title Proposed Funding Source 2023-24 2024-25
CDD IT Project Management Services IT Replacement Fund 104,000$ -$
Fire Public Safety Equipment Replacement General Fund One-time 102,810$ 107,011$
HR Contract - Half-Time HR Specialist - Onboarding General Fund One-time 46,895$ 48,583$
HR Preventative Mental Health Services for Public Safety General Fund Ongoing 35,000$ 37,000$
HR SLO Onboarding Assistance Resources (SOAR) Program General Fund One-time 6,000$ 6,000$
Parks & Rec New Contract - Recreation Coordinator (Public Art)Public Art Fund Balance 90,550$ 89,950$
Parks & Rec Volunteer Program Budget General Fund Ongoing 26,525$ 24,775$
Police Community Policing Software General Fund Ongoing 15,000$ 15,000$
Police Increased Cost for Animal Services Operations General Fund Ongoing 50,000$ 50,000$
Police Investigative Software General Fund Ongoing 11,000$ 11,000$
Police Public Safety Equipment Replacement General Fund One-time 68,512$ 60,323$
Police Reclassification - Communications Manager General Fund Ongoing 105,567$ 105,630$
Public Works Annual MS4 permit fee - SWRCB General Fund Ongoing 18,000$ 18,500$
Public Works City Hall Temporary Restroom General Fund Ongoing 12,000$ 12,600$
Public Works Contract Mowing Services at Parks General Fund One-time 100,000$ 100,000$
Public Works New Regular - Urban Forester (1 FTE)General Fund Ongoing 96,690$ 100,065$
Public Works Utilities and Janitorial Services for New City Buildings General Fund Ongoing 89,125$ 89,875$
Solid Waste Rate Manual Updates through IWMA AB 939 Carryover 15,000$ -$
Total 992,674$ 876,311$
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
Financial Outlook
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
16
Budget Document Pg. 32
•Good financial standing with balanced forecast
•However, impacts of negative CalPERS returns will impact future unfunded liability
payments
•Assumes cooling of economic activity
•Increases in both operating and capital budgets to account for CCI and CPI
•$5.2 million one-time allocation to reimburse the Infrastructure Investment Fund
(Subject to projected current year ending position)
Strategic Direction and Storm Recovery in the
2023-25 Financial Plan
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
17
Budget Document Pg. 33
•Use of reserves per policy will allow for adequate cash flow until reimbursements are
received
•Expected reserve level at 18% of operating costs in FY 2023-24 (2% below target)
•Return to 20% level in FY 2024-25
•Continued activation of the Fiscal Health Contingency Plan
•Maintain until clarity or more certainty on disaster reimbursement
•Some project costs budgeted using LRM, will reallocate funds towards future projects
when/if reimbursed
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Actual FY22 Budget FY23 Budget FY24 Budget FY25 Projected FY26 Projected FY27 Projected FY28
General Fund Five-Year Outlook
Operating*Capital Total Revenue
Revenue over Expenditures
before CalPERS ADP (thousands)$4,515$-1,849*$2,909$1,655 $2,335
18
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
*Negative because this includes storm damage estimates, which will be funded through the reserve. The revenue over expenditures in 2024-25 includes estimated
FEMA reimbursement, which will replenish the reserve.
Considerations
Fulfill ambitious work
programs and Community
goals
CalPERS payment goals to
address Unfunded Liability
In Thousands FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Undesignated
Fund Balance
(Estimated)
$0 $756 $47 $2 $531
Focus and discipline needed for long-term fiscal health.
19
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
20
Local Revenue Measure
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
Budget Document Pg. 58
•The City’s #1 source of revenue
•Budget is approximately $30 million annually
•Funds 51 full-time equivalent positions
•33% of budget allocated to streets maintenance and
transportation (including bike and pedestrian improvements)
•Reviewed and approved by REOC on 3/30/23
•No significant operating budget changes
General purpose, 1.5% sales tax
Water & Sewer Funds
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
21
Budget Document Pg. 35
•Water demand has stayed consistent
•Minor increases in the number of accounts offsets revenue reductions from
water conservation improvements
•Extraordinary increases in cost of operation, most driven by external factors
(electricity, chemicals, CCI)
•Both funds continue to invest resources into projects and initiatives designed
to lower ongoing operating costs
2023-24 2024-25
Sewer Fund $ 175,963 $ 190,850
One-time $ 157,963 $ 172,850
Ongoing $ 18,000 $ 18,000
Water Fund $ 191,384 $ 177,059
One-time $ 154,948 $ 140,034
Ongoing $ 36,436 $ 37,025
SOBCs
Proposed Water and Sewer Rates
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
22
Budget Document Pg. 43
Rate assistance program:
Funded through late fees paid by customers
Department has expanded communications to increase awareness about program
•Funds were able to sustain the deferred and reduced rate increases during pandemic years.
•2023-25 proposed rate increases developed through a comprehensive rate study conducted by
an independent consultant.
•The overall fund-level rate increases referenced below represent the percentage increase in
rate revenue required by the funds as a whole, not the specific increase that a customer may
receive.
Major Utilities Capital Projects coming in
2023-25:
WRRF Project Infrastructure Renewal
Strategy Update Pipeline Replacements Inflow and Infiltration
Reduction
Johnson –Iris –Bishop
Pipeline Replacement
Chorro –Highland –
Meinecke Pipeline
Replacement
Water Treatment Plant
Roof Replacement
Reservoir 2
Replacement (Design)
----Water----
----Sewer----
23
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
24
Parking Fund
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
Budget Document Pg. 50
•Parking Fund has seen a recovery in realized revenue (an estimated
$4 million in revenue was lost or waived to support economic vitality in the
downtown)
•The proposed parking program proposes new improvements and
services, while continuing to carry out core functions
•The fund is currently positioned to sustain planned operating and
capital expenditures, meet reserve requirements, and cover
anticipated debt payments associated with the Cultural Arts District
Parking Structure
•On February 21, 2023, Council adopted the Access and Parking
Management Plan
•One SOBC: $150,000 for a rate study analysis
Transit Fund
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
25
Budget Document Pg. 54
•Fund remains supported through extensive federal funding, including ARPA
•Uncertainty around ridership and reduced use of public transit post-pandemic
•20% of operating budget must be generated through bus fares in order to qualify for TDA
funds
•During the FY 2023-25 Financial Plan, the Transit program will issue a Request for Proposals
to establish a long-term contract for Transit Operations & Maintenance
•Continued evaluation of Cal Poly service agreement
•Continued progress on transitioning to electric fleet
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
26
CIP –Project Selection and Prioritization Criteria
•Minimal new projects in financial plan years
other than emergent storm damage projects
•Assessment of storm damage is still in
progress and staff is coordinating
closely with FEMA to maximize
reimbursement
•Cost increases and supply chain issues
continue to impact project delivery, some
projects pushed out into five-year forecast
•Continuous refunding of Capital
Projects Reserve supports project
delivery
Budget Document Pg. 67
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
27
CIP –Total Investment by Category (All funds)
Annual Asset
Maintenance
22%
Asset
Replacement
22%
New Asset
53%
CIP Reserve
3%Annual Asset
Maintenance
31%
Asset
Replacement
44%
New Asset
19%
CIP Reserve
6%
FY 2023-24 FY 2024-25
Cultural Arts
District Parking
Garage in this
year
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
282023-24 Project Highlights (General Fund/LRM)
Street Reconstruction &
Resurfacing
$5,779,000
Other
$4,550,000
Storm Response and
Recovery
$2,750,000
CIP Reserve
$4,000,000
Mission Plaza Concept Plan
Implementation
$2,429,972
Storm Drain System
Replacement
$1,875,000
Mid-Higuera Bypass
$1,250,000
IT Replacement
$869,028
Major Facility Maintenance
$822,000
Fleet Replacement: Public Works
$705,000 Park Major Maintenance & Repairs
$520,000
Other Project Examples
•Urban Forest Maintenance
•Parking Lot Maintenance
•Annual Public Art
Maintenance
•Open Space Acquisition
•Bridge Maintenance
•ATP Implementation
•Sidewalk Replacement and
Installation
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’ Comp
292024-25 Project Highlights (General Fund/LRM)
Other Project Examples
•Major Facility Maintenance
•Fleet Replacement
•Pedestrian and Bicycle
Pathway Maintenance
•SLO Creek Wall Maintenance
•Downtown Renewal
•Bridge Maintenance
•ATP Implementation
CIP Reserve
$4,000,000
Street Reconstruction &
Resurfacing
$3,908,000
Other
$5,648,206
Mid-Higuera Bypass
$2,850,000
Cultural Arts District
Parking Structure
$1,500,000
IT Replacement
$1,446,656
Storm Drain System
Replacement
$1,025,000
Laguna Lake Dredging
and Sediment Program
$900,000
ATP -Higuera Complete
Street Project
$750,000
Parking Lot Maintenance
$745,000
Development Related
Park Improvements
$3,237,138
30
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2015 2016 2017 2018 2019 2020 2021 2022
(ESTIMATED)
Historical Funded Status -City of San Luis Obispo
CalPERS Pension Plans
Projected Funded Status From 2017 Study based on 6/30/15 Actuarial Valuation
From Current study based on 6/30/21 Actuarial Valuation
From Current study based on 6/30/21 Actuarial Valuation - WITHOUT ADPs (Extra Payments to CalPERS)
CalPERS Update
Updated CalPERs Analysis
31
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
2015 2016 2017 2018 2019 2020 2021 2022
(ESTIMATED)
Miscellaneous Funded Percentage
Projected Funded Status From 2017 Study based on 6/30/15 Actuarial Valuation
From Current study based on 6/30/21 Actuarial Valuation
From Current study based on 6/30/21 Actuarial Valuation - WITHOUT ADPs (Extra Payments to CalPERS)
Average for CalPERS Public Agency Miscellaneous Plans
CalPERS Update
32
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
2015 2016 2017 2018 2019 2020 2021 2022
(ESTIMATED)
Safety Funded Percentage
Projected Funded Status From 2017 Study based on 6/30/15 Actuarial Valuation
From Current study based on 6/30/21 Actuarial Valuation
From Current study based on 6/30/21 Actuarial Valuation - WITHOUT ADPs (Extra Payments to CalPERS)
Average for CalPERS Public Agency Safety Plans
CalPERS Update
Transition to CJPIA Excess Protection Program for Workers’
Compensation Coverage
Member of California JPIA since 2004 for liability and workers’ compensation coverage.
Primary program offers “first dollar” coverage where all members pool their losses and share the cost of
claims.
Excess program includes a Self-Insured Retention (SIR), or deductible, at a level chosen by the City.
In 2016, switched from the primary program to the excess program for liability at a $500,000 SIR; resulted
in savings of approx. $400,000 annually.
Recommending switch to the excess program for workers’ compensation coverage starting July 1, 2023;
anticipated savings of approx. $750,000 in first year.
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’
Comp
33
$3,174,493
$792,700
$1,559,977
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
CJPIA Primary Program CJPIA Excess Program
Estimated Workers' Compensation Costs for FY 2023-24
Premium Direct Claim Costs (estimated)
Major City Goals
General
Fund/LRM
Overview
Enterprise
Funds
Overview
Capital
Improvement
Plan
Rec# 3:
Workers’
Comp
34
Next Steps
Adoption of 2023-25 Financial Plan & Utility Rates 6/6
Continued Review and Adoption 2023-25 Financial Plan (if needed)6/20
35
COUNCIL NEXT STEPS
1.Approve Financial Plan and Budget Appropriations
2.Advocate (Housing, Homeless, DEI, Climate) @ Federal, State, County and Community Partner Level
1.Community Partnerships, Regionalism, Governance, Etc.
3.Monitor-Impact and Outcomes of Work programs
4.Adjust-Work Programs
36
FOCUSED QUESTIONS FOR COUNCIL
1.Do the major city goal work programs include tasks, budget and timing to address Council and community
expectations?
2.Does the CIP include projects and budget allocations to address Council and community budget priorities
and previous commitments?
3.Does the Council support the REOC recommendations and determine that the proposed uses for capital
and operations fit into the priorities as identified by the community?
4.Is the Council direction on changes to the budget that need to be made before the June 6, 2023 hearing?
5.What comments does the Council want to make at this time on the proposed rate changes for Water and
Sewer funds?
Reference Slides
37