HomeMy WebLinkAboutItem 7c. 2023-25 Financial Plan and 2023-24 Budget Item 7c
Department: Finance
Cost Center: 2002
For Agenda of: 6/6/2023
Placement: Business
Estimated Time: 90 minutes
FROM: Derek Johnson, City Manager
Prepared By: Emily Jackson, Finance Director
Natalie Harnett, Principal Budget Analyst
SUBJECT: ADOPTION OF THE 2023-25 FINANCIAL PLAN
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the Council of the City of San Luis
Obispo, California, approving the 2023-25 Financial Plan and Fiscal Year 2023-24
Budget.”
POLICY CONTEXT
Although the City adopts a two-year Financial Plan, (Attachment A) the budget (also
known as appropriations) is adopted annually. Pursuant to Section 804 of the City
Charter, the City Council must adopt the 2023-24 Budget by June 30, 2023, in order for
the appropriations to be in place when the 2023-24 fiscal year begins on July 1, 2023.
This action is accomplished by Resolution, which is provided as Attachment B.
DISCUSSION
Background
The purpose of this public hearing is to adopt the 202 3-25 Financial Plan (Attachment A)
and appropriate the FY 2023-24 budget. The Resolution (Attachment B) also adopts the
updated appropriation limit to guide the budget appropriations as required under Article
XIII B of the California Constitution.
After extensive community participation and several Council budget workshops and
hearings beginning in November 2022, the 2023-25 Financial Plan is now ready for
adoption. Key elements of the Financial Plan include:
1. Focus on long-term fiscal health, aligned with Fiscal and Budget Policies and
Financial Responsibility and Sustainability Philosophy.
2. Align budget resources with Council-adopted Major City Goal strategies.
3. Prioritization of storm recovery and preparation for future events.
4. Meet the minimum fund balance and working capital policy requ irements.
5. Invest in the future and fund maintenance of existing infrastructure and invest in
the capital improvement program.
6. Address both required and “pre” payments to unfunded liabilities.
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Item 7c
The 2023-25 Financial Plan includes city-wide budgetary allocations for the two-year
period in the amounts summarized below:
Expenditures 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget % Change
General Fund $113,808 $107,805 $114,317 $114,754 0%
Business Activities
Water Fund $27,154 $41,573 $32,040 $31,614 -1%
Sewer Fund $52,840 $89,819 $23,028 $23,784 3%
Parking Fund $6,718 $14,180 $57,699 $10,230 -82%1
Transit Fund $3,658 $7,130 $10,302 $9,612 -7%
Special Revenue
Tourism Assessment $1,642 $1,577 $2,129 $2,168 2%
Downtown Assessment $222 $275 $275 $281 2%
Total $206,042 $262,359 $239,791 $192,443 -20%
Changes to the Preliminary Financial Plan
At the April 18, 2023, Strategic Budget Direction meeting, Council provided feedback to
the City Manager to have staff scope a work item around implementing parking minimums
for consideration at the June 6, 2023, City Council Meeting. At this time, staff recommends
scoping and analyzing existing resources during the first year of the Financial Plan and
presenting Council with the findings before the 2023-25 Supplemental Budget adoption
in June 2024. The additional time will allow staff to determine the true cost of the study
and potential policy options to consider.
Final Documents
After Council adopts the 2023-25 Preliminary Financial Plan, staff will publish a copy of
the Adopted 2023-25 Financial Plan and 2023-24 Budget online.
Additionally, staff will prepare a Budget-in-Brief that highlights the City’s budget process,
key budget features, Major City Goal investments and basic “budget facts.” This budget
summary is widely distributed and will be posted on the City’s website and shared through
the City’s various communication channels and with community partners.
Previous Council or Advisory Body Action
The draft budget was presented to Council during the Strategic Budget Direction meeting
on April 18, 2023. Council’s direction from that meeting was incorporated into the attached
preliminary Financial Plan. The Planning Commission reviewed the City’s Capital
Improvement Plan for the 2023-25 Financial Plan on April 26, 2023, and confirmed the
plan’s conformity with the City’s General Plan.
1 The significant decrease in Parking Fund expenditures from FY 2023-24 to FY 2024-25 is related to one-
time costs associated with construction of the Cultural Arts District Parking Structure.
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Item 7c
Public Engagement
The City’s two-year Financial Plan process includes a high degree of public engagement
and input ranging from community surveys, outreach to community groups and
organizations, a Community Forum, and several public hearings prior to adoption.
CONCURRENCE
All departments participated in the development of the 2023-25 Financial Plan and concur
with the information and budgets presented in the financial plan.
ENVIRONMENTAL REVIEW
Adoption of a budget is not a “project” as defined under the California Environmental
Quality Act.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-25
Funding Identified: Yes
Fiscal Analysis:
As outlined in detail in the Financial Plan, the City is appropriating $239,791,246 in the
2023-24 fiscal year and budgeted $192,443,355 in the 2024-25 fiscal year. Revenue and
expenditures for all funds are balanced for the duration of the Financial Plan period .
ALTERNATIVES
Do not adopt the budget and give direction to the City Manager on desired changes
and budget reallocations. This guidance will then be incorporated into the Financial
Plan and presented on June 20, 2023, for adoption prior to the 2023-2024 fiscal year
commencing on July 1, 2023.
If the proposed water and sewer rate increases are not approved, staff will amend the
Financial Plan accordingly for presentation by the City Manager on June 20, 2023, for
adoption by Council.
ATTACHMENTS
A – Preliminary 2023-25 Financial Plan
B – Draft Resolution approving the 2023-25 Financial Plan and FY 2023-24 Budget
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Introduction
Reader’s Guide 5
Budget Message from City Manager 6
City Profile
City Council 17
Community Overview 18
The City at a Glance 19
Highlights of City Services 20
Organizational Chart 21
Organizational Values 22
Financial Plan Framework
Framework and Policies 25
Fund Structure 28
Basis of Budgeting & Accounting 32
Strategic Planning
Financial Planning Process 35
Strategic Priorities/ Major City Goals 39
Local Revenue Measure 6 3
Financial Plan Overview
Budget at a Glance –General Fund 73
Where the Money Comes From 77
What the Money is Spent On 79
Consolidated Financials 85
Long Term Forecasts 89
Operating Budget –Governmental Activities
Revenues
Transfers
Expenditures
Enhancements/SOBCs
Impact on Capital
Employee Summary
Administration
City Attorney
Finance
Human Resources
Community Development
Parks & Recreation
Public Works
Fire
Police
Utilities
97
101
103
106
111
112
119
139
146
157
167
187
205
Business Activities/Special Revenue
267
267
272
274
276
283
283
288
290
293
310
310
315
318
319
319
323
323
325
327
329
Water Fund
Budget at a Glance
Capital Budget
Debt Service
Operating Programs
Sewer Fund
Budget at a Glance
Capital Budget
Debt Service
Operating Programs
Transit Fund
Budget at a Glance
Capital Budget
Operating Program
Parking Fund
Budget at a Glance
Debt Service
Capital Budget
Operating Programs
Special Revenue
TBID
Downtown BID
Boysen Ranch
Safety Equipment
CFDs
330
337Debt
Capital Budget
Overview 345
Project Summary List 363
Project Details/Narratives 369
Reference Material
Pension Obligation Trends 501
Appropriation Limit 505
Fiscal Policies 506
Budget Glossary 529
Resolution 539
Table of Contents
331
333
227
263
243
(Hyperlinked in PDF)
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3
Financial Plan Reader ’s Guide
The Financial Plan Reader’s Guide is intended to provide a
basic understanding of the 2023-25 Financial Plan and
describes the contents of each major section of this
document.It has been divided into the following sections:
Introduction
For the 2023-25 Final Financial Plan,this section p rovides a
message from the City Manager giving an overview of the
budget highlights as well as accomplishments of the City.The
message also provides the financial context for the
City’s Financial Plan and outlines some key initiatives and
assumptions in the plan.
City Profile
This section introduces the Mayor,Vice Mayor,and the
three City Council members and p rovides the reader with a
brief overview of the City of San Luis Obispo,its location,
population,interesting community information,as well as
highlights of the services available to citizens and businesses.
This section also includes the City of San Luis Obispo’s
organizational structure.
Financial Plan Framework
This section provides policy and regulatory requirements for
the development of both the City’s budget which contains
the planning framework used to develop the Financial Plan.
This section also identifies the City’s fund structure which is
a combination of governmental funds and business activities.
It provides a description of each fund and the funding sources
and the basis of budgeting and accounting.
Strategic Planning
Public Input on Financial Planning Process
This section explains the City’s public and budget
development process.It also provides a summary of survey
responses and input from the Community Forum that Council
considers when developing its goals for the two-year
Financial Plan.
Strategic Priorities
This section provides the detailed road map for the Major City
goals,as well as other driving factors for the 2023-25 Financial
Plan and the annual budget appropriation.It also provides
information on planned expenditures for the City's Local
Revenue Measure strategic investment (one and a half-cent
sales tax)for the upcoming two financial plan years.
Budget-at-a-Glance
This section provides the reader with a quick overview for
the General Fund that shows where the money comes from
and what the money is spent on.It summarizes the
information that is later outlined in more detail and
encompasses investments in strategic priorities,as well as
capital infrastructure and debt.It is a high-level overview of
all the components presented in the following sections in
more detail.
Consolidated Financial Plan
This section provides the consolidated long-term financial
outlook that outlines the revenues,expenditures,capital
investments,debt obligations,and the City’s beginning and
ending fund balance for all funds.
Operating Budget
This section p rovides a summary of each Department’s
revenue and expenditure budget compared to the prior
year as well as the employee summary.Further details
p rovide a greater understanding about depa rtment
operations,key highlights,organizational structure and
financial line-item summaries for the current budget to
prior year budgets,variances between actuals and
budget.Performance measures are also included in this
section.
Business Activities / Special Revenue Funds
This section provides the budget overview and
operating budgets for the City’s four enterprise funds as
well as the two business improvement district funds.
City Debt
This section outlines the City’s debt capacity and
considerations given when looking at issuing debt.It
outlines the City’s creditworthiness and comments from
the last rating review.The section provides the
information on current debt for all the major funds
including outstanding principal,the annual debt
payment,and the year the deb t will be retired.
Capital Budget
This section provides an overview of the five-year Capital
Plan including project cost,p roject summary details
outlining the overview of the project,the key
deliverables and budget line items as well as operating
impacts.
Reference Material
Financial Plan Reader’s Guide
Financial Plan Page 5 Page 417 of 954
City Manager Message
City Manager’s Budget Message
I am pleased to present this two-year Financial Plan to the City Council and
community. In my last Financial Plan message, I noted that unprecedented
economic uncertainties brought on by the Covid-19 pandemic had factored
significantly into the development of the 2021-23 Financial Plan. Even though the
economic impacts of Covid-19 on the City’s budget are largely behind us, we are
now wrestling with new uncertainty related to unprecedented inflationary
pressures, while also working to factor unanticipated costs related to the January
and March storms into the budget. While inflation and the storms have
significantly impacted development of this two-year Financial Plan, I am proud to
present a balanced budget in compliance with Article VIII of the City’s Charter and
Title II and Title III of the City’s Municipal Code. The recommendations propose
appropriations towards resources that advance our ability to deliver core services and continue the
excellent work being done to address Major City Goals.
Building on Current Efforts to Move into the Future
This Financial Plan delivers investments in the Council adopted strategic initiatives and 74 established
service programs while maintaining a balanced budget over the five‐year forecast period. This ambitious
work program will undoubtedly bring new challenges which in turn will yield new opportunities. With this
Financial Plan, the challenges that the City is addressing are some of the most pernicious issues facing
society and ones that local government has a role in, but the solutions are neither easy nor inexpensive.
The City has elevated expectations for services and those services require a matching high level of
investment.
The issues we face are ones where the City can be a leader and we need to measure our investment with
expectations to ensure that outcomes align with how much the City by itself can have an impact.
Cooperation and participation with the Federal, State and County governments, as well as the non-profit
and business communities are really what is required to make a significant impact on these complex and
pithy issues. Moreover, to make progress and achieve meaningful outcomes with these ambitious goals
the organization must maintain focus to ensure ongoing monitoring, reporting, and transparency and to
make intentional policy and work program adjustments as needed.
Strategic Plan and Major City Goals
The proposed strategic plan and four Major City Goals guide continuation of
workplans initiated over the last several years. Years ago, Major City Goals
have focused on specific programs and projects, but the consistency of
higher-level Major City Goals in recent years has supported a long-term focus
on initiatives that bring about sustained systemic change. As identified by the
City Council, the strategic goals of the City work together to address a broad
set of community needs that serve all residents.
Economic Resiliency, Cultural Vitality & Fiscal Sustainability
The economic uncertainty caused by the Covid-19 pandemic taught us how quickly the best laid
plans can change. Despite the fact that the fiscal impacts of Covid-19 are largely behind us, the
lessons learned support our ability to address current economic conditions. The strategic
approach for 2023-25 will continue to build upon efforts currently underway, with a new focus on
sustainable, diverse, and inclusive economic development, ensuring the vitality of our downtown,
Financial Plan Page 6 Page 418 of 954
City Manager Message
supporting arts and culture, and continuing to ensure fiscal responsibility and sustainable City
operations. The $2,000,000 in revenue reserves will serve the City well should any economic
turbulence impact revenues and afford the City the needed flexibility should it be required.
Diversity, Equity, Inclusion (DEI)
I am excited to continue with the excellent work initiated with the 2021-23 Financial Plan, to
continue to operationalize DEI efforts into the City organization which will in turn support these
efforts in the broader community. 2023-25 will see the completion of a DEI strategic plan, and
new efforts will focus on embedding DEI language into existing policies and procedures both
internally and externally for stakeholders and residents, including the DEI Manager in discussions
about resource allocation, and focusing on policy updates and creation to reflect a DEI lens for
internal processes to ensure all City Departments support work efforts included in the Major City
Goal. City Staff have embraced their role in advancing diversity and the sense of belonging for all
members in our community and I anticipate that our continued leadership and in particular, our
partnership with Cal Poly will help address structural and systemic inequities.
Housing and Homelessness
This goal continues the City Council and community desire for increased housing production of
affordable and workforce units. In addition, this goal appropriately focuses homelessness
response efforts on collaboration with the State, County and local partners to ensure that all
parties are engaged in a common goal to address this growing problem. New work efforts for
2023-25 include implementing certain aspects of the Housing Element, monitoring and updating
the two-year Homelessness Response Strategic Plan, working on new shelter capacity in
partnership with others and implementing the new Community Service Officer program to ensure
an improvement in quality of life surrounding homeless issues, specifically in the downtown area.
Climate Action, Open Space, & Sustainable Transportation
This goal continues to span a large spectrum of deliverables and continues efforts initiated over
the last six years. The strategic focus for 2023-25 will be to implement Climate Action Plan and
Lead by Example 2023-25 plans, enhancing the City’s greenbelt and making progress on our goal
to plant 10,000 trees by 2035, preserving and enhancing equitable alternative and sustainable
transportation options, increasing community resilience, and continuing to build City and
community capacity for transformational climate action. Together, these strategies work to
support an environmental quality that is unique to the City of San Luis Obispo.
Community Services and Programs
The City’s core services have developed over time based on community needs and input on programs that
support an envisioned quality of life in San Luis Obispo. It is important to keep in mind that the City is
more than a full-service City. In addition to providing public safety, water, wastewater and direct
community and support services, the City has invested in supernumerary services that include open space
management, aquatics programs, childcare, transit services, senior and other social services as examples.
The 2023-25 Financial Plan also appropriates resources needed to support storm recovery, core services
and continue to make progress on Major City Goal programs. Recently, departments prepared workload
analyses that identify the amount of staff time that is devoted to operational management of
departmental functions, fulfilling obligations for required services and workplan projects, and addressing
discretionary projects. Unsurprisingly, most departments are at capacity or oversubscribed. This Financial
Plan recommends a minimal number of new permanent or contract staff positions to support existing
programs. In recognition of constraints to staff capacity, the Major City Goal workplans include a limited
number of new work program tasks.
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City Manager Message
Capital Improvement Projects
In November 2020, the Community
supported Measure G‐20 which provides
new and expanded funding to not only
maintain and enhance the City’s assets but
to build new infrastructure to serve planned
growth. The passage of Measure G-20
nearly tripled the amount of funding
available for Capital Improvement Projects,
which exceeded existing organizational
capacity. To address this, the City
contracted with Management Partners, a
local government consulting firm, to
perform an assessment of the City’s Capital
Improvement Plan. The assessment was
broadly focused on the entire CIP- including
a review of staffing levels, policies, and processes. Upon completion of the assessment, the City hired a
contract CIP Process Improvement Manager at the end of 2021 to lead efforts to “right-size” the
organization to address the significant increase in workload. Through the course of 2022, the CIP Process
Improvement Manager worked to develop new classifications and added a net of 4.00 FTE new positions
to support the CIP; and revised CIP policies to enhance governance of the CIP, including an expanded role
for the CIP Review Committee to ensure proper oversight and coordinated decision-making throughout
the year as needs change. In early 2023, the City hired its first CIP Administrative Manager, who will be
responsible for overseeing the non-technical aspects of the City’s CIP, including budgeting and reporting,
and will continue the work to right-size the organization to address the expanded CIP.
Consistent with prior years, development of the two-year Financial Plan includes a “refresh” of the City’s
five-year CIP. The budget included in the 2023-25 Financial Plan represents a two-year investment of $183
million, and a planned investment of $465 million over the five-year plan to maintain or replace existing
assets and build new assets to address the needs of our growing community.
As Council is aware, the City continues to navigate economic uncertainty and cost escalation, which have
significantly impacted the ability to fund existing projects and add new projects to the Capital
Improvement Plan. The Council will need to be cautious and focused on core commitments towards the
City’s capital program and any new projects or shifting of capital costs to the General Fund may have a
significant impact on the delivery of planned improvements. The bright side is that the CIP does deliver
many legacy projects and it is anticipated that the City will be successful in securing Federal and State
grants to otherwise build up the short-, medium- and long-term capital program.
In addition, the ongoing work to assess damages to the City’s infrastructure from the January and March
storms and planning for necessary repairs has impacted the City’s capacity to deliver new and existing
projects. The recommended budget for the FY 2023-24 CIP includes $2.75 million to storm response and
recovery. Development of the updated five-year CIP has served as a good reminder of the significant
impacts that broader economic conditions and unanticipated circumstances have on the City’s ability to
improve and maintain its infrastructure. Though Measure G-20 continues to provide resources that are
critical to deliver needed projects to support the quality of life in San Luis Obispo, cost escalation is
significantly impacting our ability to plan for new projects in the coming years.
Figure 1- The recently completed "Railroad Safety Trail” (Taft to Pepper
Streets) project was selected for the ASCE Region 9 Outstanding Bikeways
and Trails Project Award for 2022
Financial Plan Page 8 Page 420 of 954
City Manager Message
Highlights
I am proud of all of the hard work and collaboration that has gone into developing this recommended
Financial Plan and I want to highlight a number of key components:
• Recovery from the January and March storms has been and will continue to be our highest priority
work efforts. There are a number of high priority damage areas that we must address, and the
Financial Plan allocates resources to support this work.
• Continued adherence to the City’s plan to continue to pay down pension liabilities by making
additional discretionary payments to CalPERS, in addition to regular required payments.
• Despite the unanticipated costs related to the recent storms, I am proud to be able to recommend
Significant Operating Budget Changes (SOBCs) that will help to support core services and further
the excellent work being done in Major City Goal areas.
Long-Term Outlook
The 2023-25 Financial Plan represents a continuation of
the economic uncertainty that began with the Covid-19
pandemic. While the pandemic caused us to alter our
service delivery, the inflationary pressures we face
today push us to focus on making investments that will
serve our growing community in the long-term.
Recommendations reflect full operationalization of
organizational changes as the “new normal” takes hold
following the formal end of the pandemic. Over the past
few years, the City has had to transform our delivery of service and capital programs in line with new
resources, grant opportunities, changes in personnel and new community and governance expectations.
Each of these alone would by a powerful factor and all at once requires that the City continue to focus on
implementing systems to account for these once in a generation changes. Thankfully, the City Council has
recognized these unique opportunities and additional resources to tackle work programs and for the
organization to fulfill the community’s long‐term vision.
The long‐term fiscal outlook concentrates on delivering the services and capital improvement projects
and it maintains its pre‐pandemic commitment to address the long‐term pension liability by making
Additional Discretionary Payments (ADPs) in the amount of $2 million per year. These efforts will support
the long‐term fiscal sustainability and financial well‐being of the City and continue the expected levels of
services to the community.
Balancing Resources with Ambitions
The last few years have been defined by a series of emergencies and a recalibration of work and
expectations and the addition of new resources and projects to meet the community’s needs.
Moving forward, the challenge will be to balance continuation of these new resources and
projects, with the eventual need to expand service delivery to support our growing community in
a fiscally sustainable manner.
In the last several years, the City has worked hard to address a pent-up demand for housing. A
number of large-scale developments are underway, which will add new community members and
new infrastructure will be needed to support them. The costs associated with building and
providing ongoing maintenance to this new infrastructure will be considerable, and we will need
to prioritize these costs in order to expand delivery of our core services.
Financial Plan Page 9 Page 421 of 954
City Manager Message
In addition to expanded service level responsibility, the inflationary pressures that we are all
experiencing personally impact the City as well. As the cost-of-living increases, we will have a need
to continually focus our efforts on paying competitive wages that acknowledge the work of our
employees and helps to retain them. Cost escalation and supply chain issues have significantly
impacted the cost and time needed to deliver our ambitious CIP and have limited our ability to
add new projects to our five-year plan, which forces us to recalibrate our expectations of what is
possible. In addition, we need to be mindful of how inflation impacts the cost to deliver water,
sewer, parking and transit services through our enterprise funds. These critical services are
supported through user fees, and we need to be mindful of our costs in order to ensure that these
services are accessible to the community.
Challenges
With support from our community and the Council, we have a bright future ahead, but also acknowledge
that we face a number of challenges.
More Revenue, More Volatility
The revenue growth that the City has seen in the last several years due to the passage of Measure
G-20 has enabled us to expand important programs and services and fund capital projects in ways
that were not previously possible. While there are many positives that come from this revenue
growth, we also face some risk as the City’s budget has become increasingly reliant on a funding
source that is heavily impacted by the economic volatility has become constant over the last
several years.
CalPERS Unfunded Liabilities
Unfunded pension liabilities continue to be a significant focus for our organization. In 2017,
CalPERS made some significant policy changes to address unfunded liabilities systemwide, which
resulted in significantly increased required pension contributions for member agencies. In
response to this, the City Council adopted a Fiscal Health Response Plan (FHRP) in FY 2018-19 to
position the City to increase its pension contributions in line with new CalPERS requirements. The
FHRP included three main components: new revenues, operating reductions and new ways of
doing business, and employee concessions. We have made substantial progress in each of these
areas, which has enabled us to make additional payments to CalPERS. While these additional
payments helped us to achieve a funded status of 70.1% in 2021, general economic conditions
and the -7.5% investment return that CalPERS experienced in FY 2021-22 has set us back where
we were in 2015.
Earlier this year, the City contracted with Foster & Foster, an independent national actuarial
consulting firm to perform a review of the City’s progress in paying down unfunded pension
liabilities. Foster & Foster confirmed that the City is taking appropriate action to make progress in
paying down the unfunded pension liabilities, but that market conditions impacting CalPERS
investments hinder progress. The impact of the -7.5% investment return in FY 2021-22 is a stark
reminder that the City’s ability to address unfunded liabilities is heavily impacted by factors
outside of the City’s control. Based upon the actuarial analysis, the long-term forecast will need
to be revised in order to factor in the expected increased pension costs in the out years. Given
current economic uncertainty, we have not modified our approach to the recommended Financial
Plan for 2023-25 but know that we have some work to do to determine how to address increased
pension costs in the long-term.
Financial Plan Page 10 Page 422 of 954
City Manager Message
Storm Expenditures
The significant storms that hit our community in January and
March has required unanticipated expenditures to support
emergency protective measures, remove debris from the public
right of way, and make repairs to damaged City infrastructure. To
date, the City has incurred just under $4 million of expense related
to the storms, and Public Works estimates an additional $4.3
million of expense to make high priority repairs and $9.5 million
for medium and low-priority work. As of the writing of this
message, staff is assessing the risks posed by damages and
weighing those with the cost to make permanent repairs to decide
which projects to move forward.
In late January, I activated the Fiscal Health Contingency Plan to
provide a framework for responding to the fiscal impacts of the
storms. The operating reserve is being used to fund storm
response and repairs and we are prioritizing replenishment of the reserve back to the 20% reserve
level, consistent with policy requirements. The long-term forecast assumes use of $9 million from
the reserve, spread over the current fiscal year and next. In addition, this Financial Plan includes
a recommended capital project in the amount of $2.75 million to repair damages from the storms.
In total, staff has identified $11.75 million in funding sources to address storm costs. At this time,
the City is eligible for Federal and State reimbursement for the January storms only. The maximum
reimbursement for eligible costs is 93.75% (75% from FEMA and 18.75% from CalOES), meaning
that the City will pay a minimum of 6.25% for certain storm related costs. If full reimbursement
of eligible costs (93.75%) is not achieved, reductions will be made in future CIPs. Staff in Finance,
Fire and Public Works are working in collaboration with FEMA to ensure proper documentation
to maximize reimbursement, and we have also recently contracted with Ernst and Young for
disaster recovery technical assistance in navigating the complex reimbursement process.
Workforce Transition and Development
In early 2023, the City partnered with The Centre for Organization Effectiveness to conduct an
employee engagement survey. This survey aimed to gain valuable insights into how the City can
best support employees in achieving their departmental goals and foster a positive and engaged
workforce. The impressive response rate of 88% from surveyed employees reflects the high level
of staff engagement.
Despite the overwhelmingly positive survey results, it is vital for the City to continue prioritizing
staff training and development initiatives. Similar to many employers, the City has faced increased
turnover in recent years, attributed to the effects of the Great Reshuffle. Notably, 43% of surveyed
employees have been with the City for five years or less, and the median tenure of the workforce
is just over five years.
To foster the growth and retention of the current workforce, it is imperative to continue
strengthening the City’s investment in learning and development. This includes enhancing the
onboarding plan for new hires and providing them with the necessary tools and support to thrive
in their roles. Additionally, a strategic focus on knowledge management and seamless knowledge
transfer will enable the City to harness the expertise and institutional knowledge within the
organization.
Figure 2 - City staff across all
departments stepped up to
respond to the 2023 storms.
Financial Plan Page 11 Page 423 of 954
City Manager Message
State Budget Forecast
In mid-May the Governor released the May Revision to the FY 2023-24 proposed budget. The
updated budget projects a $31.5 million budget deficit. At this point, the Governor’s proposal to
close that gap has not redirected funds away from cities. However, as the Governor and Legislative
Leaders begin negotiating on a final budget package, there is still a chance that there could be
cuts to funding that flows to the cities. The League of California Cities has been fighting efforts to
cut funding for cities and advocating for more funding to address homelessness. While, this
additional funding did not materialize in the May Revision, there is still hope that it could be added
during budget negotiations.
The City has been actively pursuing once-in-a-career grant opportunities related to the Inflation
Reduction Act of 2022 and the Infrastructure Investment and Jobs Act. These two laws resulted
in $100s of billions flowing from the Federal government to states, counties, and cities. The City
is actively monitoring these opportunities to find ways to leverage these funds to complete
projects throughout the City including the Prado Road Bridge & Road Widening, Prado Road
Interchange, and Active Transportation infrastructure throughout the City.
City Values During Economic Turbulence
While unbudgeted costs from the January and March storms were the impetus for activation of the Fiscal
Health Contingency Plan (FHCP) at the end of January, the plan also provides a framework to address the
economic turbulence that we are currently facing. The key elements of the plan require that we pay close
attention to the overall fiscal health of the organization by maintaining fund balances at policy levels,
adhering to key budget and fiscal policies, monitoring the City’s fiscal health on an ongoing basis, assessing
the challenges, identifying options and preparing and implementing an action plan.
In many ways, the FHCP promotes the ongoing values of the City, as it
encourages involvement and participation from key stakeholders
including the organization as a whole, employee associations and
community groups. Central to the FHCP is a focus on respect, which
means that we are committed to sharing facts in a straightforward and
timely way, even if doing so is difficult for the community and
organization. Communication is critical to promoting respect everyone
involved and helps to ensure that stakeholders have the opportunity to
come to the table to engage in developing and implementing meaningful
strategies to address adverse fiscal circumstances.
Accomplishments
Despite the economic public health difficulties of the last several years,
our organization has accomplished a lot. Over the course of the 2021-23
Financial Plan, we have made progress in a number of areas that support
both our ability to deliver core services and advance Major City Goal
efforts. Many of these efforts contribute to a legacy that we can all be
proud of:
• Established the Office of DEI and hired the City’s first ever DEI
Manager to help to further the City’s goal to create an
organization and community that is safe and welcoming for all.
• Implemented and grew a number of programs including the Mobile Crisis Unit and Community
Action Team, to support the needs of our most vulnerable members of our community.
Figure 3 - “The Greys in Between”,
created by artist Anila Quayyum Agha,
is a permanent sculpture at the center
of the newly completed Orcutt-Tank
Farm roundabout.
Photo credit: Steven Heraldo
Financial Plan Page 12 Page 424 of 954
City Manager Message
• Secured millions in outside grant funding to support general fund and business service projects
and programs.
• Updated the City’s Climate Action Plan which was recognized as the best CAP in the United States
by the American Planning Association.
• Began development of the City’s next Economic Development Strategic Plan.
• Continued community preparedness efforts for disasters through development of disaster plans
and monitoring creek maintenance and wildfire protection plans.
• Continued to develop and refine Cannabis regulations.
• Developed a Parks and Recreation ‘Blueprint for the Future’ to guide development of parks,
facilities and programs in the city through 2041.
• Developed a Citywide purchasing policy and improved business license and tax compliance to
support organizational fiscal sustainability.
• Implemented a Community Service Officer program to ensure effectiveness and improvements in
quality of life surrounding homeless issues in the downtown.
• Improved and opened the Miossi Open Space, adding 266 acres to the City’s greenbelt.
• Completed or made considerable progress on a number of high impact and visibility projects
including:
o Tank Farm Roundabout.
o Taft to Pepper Railroad Safety Trail.
o Groundwater Contamination Characterization.
o Wastewater Resource Recovery Facility Upgrade (construction ongoing).
o Broad/Woodbridge Pedestrian Beacon.
o Downtown Paving.
• Implemented the provisions of SB 1383 which aims to divert 50% of organic waste from landfills.
• Began construction of the Cultural Arts District Parking Structure, which will anchor and support
future development of the Cultural Arts District in the downtown.
• Adopted a Homelessness Strategic Plan.
• Updated the City’s Public Engagement and Noticing Procedures (PEN) manual as well as other
public outreach efforts to increase diverse participation in City processes.
Conclusion and Acknowledgements
Development of this two‐year Financial Plan amid
considerable uncertainty has been a challenge. Despite
the uncertainty, staff has worked hard to develop budget
recommendations that balance investment in the City
Council’s identified Major City Goals with core service
obligations and ongoing storm recovery efforts in a way
that prioritizes the long-term fiscal health of the
organization. Staff recommendations represent a
measured approach in response to significant
community input and Council direction to make progress
in priority areas while leaving room for future
adjustments, if needed to respond to changing economic
conditions.
I am grateful for the tremendous efforts of all City staff
over the past 24 months, as we have learned to operate
in a period of continuous change. I want to thank members of the Financial Plan Steering Committee,
Financial Plan Page 13 Page 425 of 954
City Manager Message
composed of Department Heads and senior City management, which met at least monthly throughout
the last year to develop a comprehensive financial and management strategy that not only advanced
Major City Goals, but also preserved and reimagined services. Their advice and input were critical in the
development of this financial plan.
I also want to thank the Finance Department’s budget team, who did the heavy lifting in the preparation
of the actual document. They include Finance Director Emily Jackson, Principal Budget Analyst Natalie
Harnett, and Accounting Manager/Controller Debbie Malicoat. Business and Administrative Manager
Rebecca Bernstorff, Public Works Director, Matt Horn, HR Director Nickole Domini, Deputy City Manager
Greg Hermann and Assistant City Manager Shelly Stanwyck also contributed significantly to development
of this Financial Plan. For months, they toiled over numbers, strategies, and changes in forecasts to
produce the final balanced Financial Plan.
My greatest appreciation goes to the Community, City Council, City employees, and community partners
who continue to engage and provide meaningful input as we pursue a bright future for an inclusive and
vibrant community.
With gratitude,
Derek Johnson
City Manager
Financial Plan Page 14 Page 426 of 954
CITY PROFILE
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The City of San Luis Obispo is a charter city and operates under the "Council-Mayor-City Manager"form of
municipal government.The five-member City Council consists of the directly-elected Mayor,a Vice Mayor
and three City Council Members.The Mayor is elected to a two-year term and the Council Members are
elected to four-year terms.
The City Council is the legislative authority and sets the policies under which the City operates.The City
Council has the power to adopt ordinances and resolutions,make appointments to the City's advisory
bodies,establish policies and approve programs,appropriate funds,adopt budgets,and approve contracts.
The Mayor presides at all meetings of the City Council and is recognized as the official head of the City for
all ceremonial purposes.
Once a Financial Plan has been adopted,the Council's focus moves to 1)advocacy for its major initiatives at
the Federal,State,County and Community Partner level -2)Leadership for Community Partnerships,
Regionalism,Governance -3)Monitor the impact and outcomes of work programs and direct appropriate
adjustments.
C I T Y P R O F I L E
City Council
2023-25 City Council Financial Plan Vision
The City of San Luis Obispo is a dynamic community embracing its future while
respecting its past with core values of civility, sustainability, diversity, inclusivity,
regionalism, partnership, and resiliency.
Andy Pease
Councilmember
Michelle Shoresman
Councilmember
Jan Howell Marx
Vice Mayor
Emily Francis
Councilmember
Erica A. Stewart
Mayor
Financial Plan Page 17 Page 429 of 954
Located mid-way between San Francisco and Los Angeles,San Luis Obispo is the County seat and a number of
federal and state regional offices and facilities are located here,including Cal Poly Sate University,Cuesta
Community College,the regional Water Quality Board,California Highway Patrol Dispatch Center,and
Caltrans District Offices.The City’s ideal weather and natural beauty provide numerous opportunities for
outdoor recreation at nearby City and State Parks,lakes,beaches,and wilderness areas.
Commmunity Overview
While San Luis Obispo grew relatively slowly
during most of the 19th century,the coming of the
Southern Pacific Railroad in 1894 opened up the
area to the rest of California.The City’s distance
from major metropolitan areas to the north (San
Francisco)and south (Los Angeles)have allowed it
to retain its historic and scenic qualities,which
contribute to the superb quality of life residents
enjoy and that attract visitors from all over the
world.In fact,in 2010,the City was dubbed the
“Happiest City in North America”by National
Geographic author Dan Buettner.
Another key feature contributing to the City’s
great quality of life is its delightful downtown.
The heart of which is the Mission Plaza.With its
wonderful creek side setting and beautifully
restored mission and parish church,Mission Plaza
is the community’s cultural and social center.
This historic plaza is complemented by a bustling
downtown offering great shopping,outdoor and
indoor dining,night life,and its famous Thursday
Night Farmers’Market,where you can buy locally
grown fresh produce an enjoy and outdoor BBQ.
This unique blend of history,culture,commerce,
and entertainment make San Luis Obispo’s
downtown one of the most attractive,interesting,
and economically vibrant downtowns in America.
San Luis Obispo is a full-service city that provides
police,fire,water,sewer,streets,transit,parking,
planning,building,engineering,and parks and
recreation service to the community.The City
operates under the Council-Mayor-City Manager
form of government.The City Council appoints
the City Manager and City Attorney.All other
department heads are appointed by the City
Manager.
C I T Y P R O F I L E
Financial Plan Page 18 Page 430 of 954
63%
In the Labor Force
23,007
Total Housing
Units
47,653
Population
(largest city in SLO County)
$61,862
Median Household
Income
Source:City Comprehensive Annual Financial Report —2021-22
Incorporated in 1856 as
a General Law City and
became a Charter City in
1876.
39.5% 60.5%
Owned vs. Rented
Public Safety
Sworn Personnel
47 64
13.6
Square Miles
Water Supply
Salinas & Whale Rock: 4,910 AF*
Nacimiento:5,482 AF**
Recycled Water: 291 AF
Total safe annual yield: 10,611 AF
*AF = acre feet
**Dependable Yield
The City at a Glance
C I T Y P R O F I L E
Financial Plan Page 19 Page 431 of 954
34
City Council Meetings Held
136
Fire Suppression Calls
17,991
Rounds of Golf
234
City Council Agenda
Reports
587
Building Permits
Issued
MAINTAIN
28CityParks 65 4,040Acres of Open SpaceTrail Mileage
135Miles of Roadway
191Miles ofWater Lines
148Miles of Sewer Lines
5,509Acre Feet of Water Consumed
83
Miles ofBikeways
2,817
Public Parking
Spaces
MAINTAIN
8,371
Business Licenses
Issued
551
Enforcement Cases Opened
85
Contacts with
Businesses Regarding
Starting, Expanding or
Staying in the City282
Development Permit Applications
Received
City Services Highlights
135 paved street miles
12,970Trees in the Urban Forest
528,000
Transit Passengers
59
Newly Constructed
Deed-Restricted
Affordable Housing
Units Built in 2021 &
2022
37,960
Calls for Police Service
6,223
Calls for Fire Service
62,224
Annual
Aquatics
Attendance
C I T Y P R O F I L E
Financial Plan Page 20 Page 432 of 954
Organizational Char t
THE COMMUNITY
Mayor &
City Council
Advisory
Bodies
City AttorneyCity Manager
Community
Services
Public Works
Utilities
Parks &
Recreation
Community
Development
Police Fire Administration
& IT Finance Human
Resources
C I T Y P R O F I L E
Financial Plan Page 21 Page 433 of 954
Employee Development and
Recognition
Organizational Values
Shared Mission, Vision, & Goals
Service to the Community
Leadership & Support
Communication
Team Players
Honesty, Respect, & Trust
Initiative & Accountability
Innovation & Flexibility
Stewardship & Ethics
C I T Y P R O F I L E
Financial Plan Page 22 Page 434 of 954
FINANCIAL PLAN FRAMEWORK
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Financial Plan Framework
Budget Policies
FINANCIAL PLAN PURPOSE AND ORGANIZATION
A. Financial Plan Objectives. Through its Financial Plan, the City will link resources with results by:
1. Identifying community needs for essential services.
2. Organizing the programs required to provide these essential services.
3. Establishing program policies and goals, which define the nature and level of program services required.
4. Identifying activities performed in delivering program services.
5. Proposing objectives for improving the delivery of program services.
6. Integrate climate risk and climate action considerations throughout all financial decisions.
7. Integrate Diversity, Equity, and Inclusion (DEI) considerations throughout all financial decisions.
8. Identifying and appropriating the resources required to perform program activities and accomplish
program objectives.
9. Setting standards to measure and evaluate the:
a. Output of program activities.
b. Accomplishment of program objectives.
c. Expenditure of program appropriations.
B. Two-Year Budget. Following the City's favorable experience, the City will continue using a two-year financial
plan, emphasizing long-range planning and effective program management. The benefits identified when the
City's first two-year plan was prepared for 1983-85 continue to be realized:
1. Reinforcing the importance of long-range (“strategic”) planning in managing the City's fiscal affairs.
2. Concentrating on developing and budgeting for the accomplishment of significant goals and objectives.
3. Establishing realistic timeframes for achieving goals and objectives.
4. Creating a pro-active budget that provides for stable operations and assures the City's long-term fiscal
health.
5. Promoting more orderly spending patterns.
6. Reducing the amount of time and resources allocated to preparing annual budgets.
C. Measurable Objectives. The two-year financial plan will establish measurable program and performance
objectives and allow reasonable time to accomplish those objectives.
D. Second Year Budget. Before the beginning of the second year of the two-year cycle, the Council will review
progress during the first year and approve appropriations for the second fiscal year.
E. Operating Carryover. Operating program appropriations not spent during the first fiscal year may be carried
over for specific purposes into the second fiscal year with the approval of the City Manager.
F. Goal Status Reports. The status of major program objectives will be formally reported to the Council on an
ongoing, periodic basis.
Financial Plan Page 25 Page 437 of 954
Financial Plan Framework
G.Mid-Year Budget Reviews. The Council will formally review the City’s fiscal condition, and amend
appropriations if necessary, six months after the beginning of each fiscal year.
LONG - TERM FINANCIAL PLANNING
A.Balanced Budget. The City will maintain a balanced budget over the two-year period of the Financial Plan.
This means that:
1.Operating revenues must fully cover operating expenditures, including debt service.
2.Ending fund balance (or working capital in the enterprise funds) must meet minimum policy levels. For
the general and enterprise funds, this level has been established at 20% of operating expenditures.
Additionally, it includes the revenue and rate stabilization reserves as set forth in the City’s fiscal policies
under the Fund Balances and Reserves section.
3.Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in
this situation, beginning fund balance can only be used to fund capital improvement plan projects, or
other “one-time,” non-recurring expenditures.
B.Long-Term Liabilities and Maintenance of Infrastructure. The City will give priority to applying unassigned
fund-balance due to one-time expenditure savings or one-time increase in revenue to pay down long-term
unfunded liabilities and invest in infrastructure and equipment.
C.Consideration of Climate Risk and Climate Action. The City is aware of the increasingly severe and frequent
natural, economic, and social disruptions presented by a rapidly changing climate. The City is also aware of
the financial benefits (e.g., reduced operational costs, prudent asset management, access to green bonds,
etc.) of managing climate risk and orienting towards a carbon neutral municipal operations and community.
The City will include climate risk and climate action considerations in its long-term financial planning.
D.Consideration of Diversity, Equity, and Inclusion (DEI). On June 18th, 2020, the City Council took action to
affirm racism as a public health crisis and committed to making San Luis Obispo a welcoming, inclusive, and
safe community for everyone (R-11132). The City Council also set a vision of a community with core values of
diversity and inclusivity in the adoption of its 2019-21 Major City Goals. The City is committed to supporting
diversity, equity, and inclusion in is operations and in the community. The City will include DEI considerations
in its long-term financial planning.
E.Revenue Stabilization Reserve – General Fund. As outlined in the City’s Fund Balance and Reserve policy, the
City Council can activate a Revenue Stabilization Reserve in its General Fund to counteract any adverse
revenue forecast during a period of economic uncertainties pertaining to the City’s largest tax revenue
sources. For the 2023-25 Financial Plan, this reserve has been set at $2 million and is included in the long-term
forecast.
FINANCIAL REPORTING AND BUDGET ADMINISTRATION
A.Annual Reporting. The City will prepare annual financial statements as follows:
1.In accordance with Charter requirements, the City will contract for an annual audit by a qualified
independent certified public accountant. The City will strive for an unqualified auditors’ opinion.
Financial Plan Page 26 Page 438 of 954
Financial Plan Framework
2.The City will use generally accepted accounting principles in preparing its annual financial statements and
will strive to meet the requirements of the GFOA’s Award for Excellence in Financial Reporting program.
3.The City will issue audited financial statements within 180 days after year-end.
B.Interim Reporting. The City will prepare and issue timely interim reports on the City’s fiscal status to the
Council and staff. This includes on-line access to the City’s financial management system by City staff; monthly
reports to program managers; more formal quarterly reports to the Council and Department Heads; mid-year
budget reviews; and interim annual reports.
C.Budget Administration. As set forth in the City Charter, the Council may amend or supplement the budget at
any time after its adoption by majority vote of the Council members. The City Manager has the authority to
make administrative adjustments to the budget as long as those changes will not have a significant policy
impact nor affect budgeted year-end fund balances.
For a comprehensive list of the City’s financial policies, please see the reference section.
FISCAL POLICY COMPLIANCE
The City of San Luis Obispo has created policies and procedures that guide effective government management.
Adopting these as formal policies endures that they outlive staff changes, promoting stability and continuity. The
City is currently in compliance with all policies as summarized in the chart below and in the details within the
reference section of this report.
Fiscal Policy (linked to policy detail) Compliant?
1.General Revenue Management ✓
2.User Fee Cost Recovery ✓
3.Enterprise Fund Fees & Rates ✓
4.Revenue Distribution ✓
5.Investments ✓
6.Appropriations Limitation ✓
7.Fund Balances and Reserves ✓*
8.Capital Improvement Management ✓
9.Capital Financing and Debt Management ✓
10.Human Resource Management ✓
11.Contracting for Services ✓
*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 (93.75% maximum from FEMA
and CalOES), then reductions may need to be made in future Capital Improvement Plans in order to balance the
budget.
Table 1
Financial Plan Page 27 Page 439 of 954
Financial Plan Framework
Fund Structure
The City’s financial structure is separated into governmental and business activities. Five major funds are
administered and reported on. Each fund balances all revenues and expenditures to ensure that there is
no immediate or emerging structural budget deficit. Business activities are distinguished from
governmental funds by their similarity to private sector enterprises and are financed solely through user
charges.
General Fund
The General Fund is the primary operating fund for general government operations and is
mostly funded through various tax revenues. It also collects service fees to recover the reasonable costs
for specific services.
Sources of Fund Uses of Funds
Tax & Franchise Revenue Municipal Services
Sales Tax Public Safety
Property and Lodging Tax Parks & Recreation
Utility User and Business Tax Public Works
Cannabis and Franchise Tax Community Development
Service Fees General Government
Planning and Building • Administration
Parks & Recreation Fees • City Attorney
Public Safety Fees • HR and Finance
Water Fund – Public Utilities
The City’s Water Fund is a business-activity and is therefore funded solely through its own
rates to provide service. It treats and delivers water to the public from three surface reservoirs as well as
recycled water for landscape irrigation. The water service is provided to all property owners in the City
including parks and sport fields.
Sources of Fund Uses of Funds
Service Fees Sources of Supply
Water Service Charges Water Treatment
Base Fee Revenue Water Distribution
Cal Poly Sales Water Resources Management
Recycled Water Sales Administration and Engineering
Development Impact Fees Capital Infrastructure
Debt Financing
Financial Plan Page 28 Page 440 of 954
Financial Plan Framework
Sewer Fund – Public Utilities
The City’s Sewer Fund is also a business-activity and fund and operates and maintains the
City’s sanitary sewer system and the Water Resource Recovery Facility. An efficient sanitary
sewer system that collects and treats wastewater provides a foundation for public health and community
well-being. User fees are the primary source of revenue for this fund.
Sources of Fund Uses of Funds
Service Fees Water Resource Recovery Facility
Sewer Service Charges Wastewater Collection
Base Fee Revenue Water Quality Lab
Cal Poly Sales Environmental Compliance
Development Impact Fees Administration and Engineering
Industrial User Charges Capital Infrastructure
Debt Financing
Parking Fund – Public Works
The City’s Parking Fund implements the Access and Parking Management Plan and directs
the operation and maintenance of the City’s parking facilities. These facilities include parking lots in
Downtown and Railroad Square, on-street parking, residential parking districts, and three parking
structures. The operation is paid for by parking user fees.
Sources of Fund Uses of Funds
Service Fees Parking Operation, Security, & Cleaning
Parking Meters Collection Public Education & Engagement
Parking Structure Collection Administration
Parking Leases Capital Infrastructure
Long-term Parking Debt
Parking in-lieu Fees
Parking Citations/Fines
Transit Fund – Public Works
The City’s Transit Fund provides daily fixed-route transit service to the general public within
City limits and to Cal Poly University. It also includes the Downtown trolley service connecting downtown
with the lodging district on upper Monterey Street. The services are paid for by user fares and federal and
state funding. Federal funding is subject to single audit requirements.
Sources of Fund Uses of Funds
Federal & State Grants Public Transit Operation
Fare Box Revenue Administration
Financial Plan Page 29 Page 441 of 954
Financial Plan Framework
Fund Structure continued
Governmental Funds
In addition to the five major funds (general, parking, sewer, transit and water), the City maintains a fund
structure to account for special revenue, capital projects, and its debt service. As the General Fund, these
funds belong to the governmental activities and are distinguished by their measurement focus on
determining financial position and changes in financial position according to the modified accrual method
of accounting, rather than upon determining net income.
Local Revenue Measure Sub-Fund
This sub-fund to the General Fund accounts for the local 1.5-cent sales tax measure. The funding is used
in accordance with the community’s priorities for services and capital improvement projects. The City’s
Municipal Code under Section 3.15 – Community Services and Investment Transactions and Use Tax
guides the use of the revenue and the fiscal accountability provisions.
The Revenue Enhancement Oversight Committee, as directed by Municipal Code Section 2.14, makes
recommendations to the City Council regarding the use of the funding on an annual basis.
Special Revenue Funds
Downtown Business Improvement
District
Gas Tax Fund
Transportation Development Act Fund
Law Enforcement Grant Fund
Public Art (Private Sector Contributions)
Fund
Tourism Business Improvement District
Fund
Avila Ranch Community Facilities
District (CFD)
San Luis Ranch Community Facilities
District (CFD)
Capital Project Funds
Capital Outlay Fund
Parkland Development Fund
Transportation Impact Fee Fund
Open Space Protection Fund
Airport Area Impact Fee Fund
Affordable Housing Fund
Fleet Replacement Fund
Los Osos Valley Road sub-Area Fee Fund
Information Technology Replacement
Fund
Major Facility Replacement Fund
Infrastructure Investment Capital Fund
Financial Plan Page 30 Page 442 of 954
Financial Plan Framework
Relationship between Funds and Departments
The City’s organizational structure consists of departments performing various activities necessary for the
operations of the City, while the City’s finances are reported in funds. The following table portrays the
City’s departments and the sources of revenue they use to provide services.
Department
Administration/ITCommunity DevelopmentCity AttorneyFinanceFire DepartmentHuman ResourcesParks & RecreationPublic WorksPoliceUtilitiesGeneral Fund x x x x x x x x x x*
Debt Service fund x
Insurance Fund x x
Water Fund x
Sewer Fund x
Whalerock Fund x
Parking Fund x
Transit Fund x
Avila and San Luis Ranch CFDs x
Public Safety Equipment Funds x x
Downtown Business Improvement District x
Gas Tax Fund x
Transportation Development Act Fund x
Law Enforcement Grant Fund x
Public Art Fund x x
Tourism Business Improvement District Fund x
Capital Outlay Funds**x
Parkland Development Fund x x
Transportation Impact Fee Funds x
Public Safety Impact Fee Funds x x
Open Space Protection Fund x x
Airport Area Impact Fee Fund x
Affordable Housing Fund x
Los Osos Valley Road sub-Area Fee Fund x
Information Technology Replacement Fund xFund
**The Public Works department manages the Capital Improvement Plan; however, the funds support
capital projects for all of the departments.
*Solid Waste and Flood Control/Stormwater divisions only.
Table 2
Financial Plan Page 31 Page 443 of 954
Basis of Budgeting and Accounting
Basis of Budgeting Budgetary basis refers to the basis of accounting used to estimate financing sources and uses in the
budget. The City prepares its budget for each fund in accordance with its respective basis of accounting.
The City prepares a two-year Financial Plan and appropriates a one-year budget. The City Council
approves the appropriation for governmental funds and business activities (enterprise funds).
Basis of Accounting
In accordance with generally accepted accounting principles (GAAP), the City’s financial reporting system
is organized on the fund basis consisting of three major fund types - governmental, proprietary, and
fiduciary. The City’s various funds have been established in order to segregate and identify those
financial transactions and resources associated with providing specific activities or programs in
conformance with special regulations, restrictions, or limitations.
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Expenditures generally are recorded when a liability is incurred; however, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Proprietary (Enterprise) funds are accounted for on the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned
and expenses are recorded at the time liabilities are incurred. The only type of proprietary funds that
the City uses are enterprise funds for water, sewer, p arking, and transit services. Within this document,
they are reported under business activities.
Fiduciary funds. The City has established fiduciary funds, which are used to account for funds held by
the City as an agent for private individuals, organizations or other government agencies. Unlike other
types of funds, fiduciary funds only report assets and liabilities, thus they do not have a measurement
focus since they do not report operating activity. However, fiduciary funds do use the accrual basis of
accounting to recognize receivables and payables.
Internal Service fund. The City created an internal service fund to account for the resources needed
to pay for liability, workers compensation, and other benefit -related costs. Internal service funds
typically assess a fee or seek reimbursement for the amounts that are expend ed and are not expected
to accumulate fund reserves unless needed for a future payment.
Financial Plan Page 32 Page 444 of 954
STRATEGIC PLANNING
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Financial Planning Process
Financial Plan Process
For over thirty years, the City has used an extensive process to create its two-year financial plan and
corresponding budgets. The benefits of budgeting based on a two-year plan include:
1. Reinforcing the importance of long-range (“strategic”)
planning in managing the City's fiscal affairs.
2. Concentrating on budgeting to accomplish significant
objectives over a multi-year period.
3. Establishing realistic timeframes for achieving
objectives.
4. Creating a proactive budget that provides for stable
operations and assures the City's long-term fiscal health.
5. Reducing the amount of time and resources allocated to
preparing annual budgets.
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. The process allows the City Council to engage the community in identifying strategic priorities
in the form of Major City Goals while also providing information regarding the City’s established ongoing
services, including the day-to-day work and responsibilities carried out by City employees to support
residents’ quality of life.
Public Engagement
There are a variety of opportunities to provide input to the City Council to enable them to set the City’s
strategic approach and establish Major City Goals with the community’s interest in mind. Some of these
opportunities are online surveys, letters from organizations, but others take place during public meetings
and the City’s community forum.
Online Survey
To kick off the financial planning process, a survey was released to ask participants if they would like to
maintain the current Major City Goals (Economic Stability, Recovery and Resilience; Diversity, Equity,
Inclusion; Housing and Homelessness; Climate Action, Open Space and Sustainable Transportation) or
identify different priorities. A total of 1,300 survey responses were received representing nearly 65 hours
of public comment. In total, 429 individuals chose to keep the current Major City Goals. The remaining
871 individuals indicated that they wanted to change priorities. If participants wished to change priorities,
they were provided with previous priorities identified by the community as well as an open-ended ’Other’
option. In total, 164 individuals chose the “other” option. Staff reviewed all responses, and the chart on
the next page captures the top ten themes of those responses.
Major City Goals represent the
most important, highest
priority goals for the City to
accomplish over the next two
years, and as such, resources
should be included in the 2023-
25 Financial Plan.
Financial Plan Page 35 Page 447 of 954
Financial Planning Process
Community Forum
A Financial Plan focused Community forum was held on January 26, 2023 at the Ludwick Community
Center in San Luis Obispo. Over 200 community members participated in person and virtually online. The
forum included a walk-through environment and nine interactive booths to converse with City staff and
other community members. New this year, was a switch to a digital approach to receiving community
feedback. Attendees were able to scan a QR code on their phone or with the support of staff, rank
potential ways that the City could achieve any of the potential Major City Goals. Additionally, attendees
were also able to submit other ideas that weren’t included in the ranking process if they felt that there
was something else the City should address. The meeting concluded with public comment.
After the forum, the community feedback and ranking of priorities was compiled and presented to Council
at the all-day goal-setting workshop held on Saturday, February 11, 2023. The results can be found at
www.slocity.org.
164
238
299
377
387
426
438
454
533
537
694
0 100 200 300 400 500 600 700 800
Other
Diversity, Equity, and Inclusion
Public Safety
Fiscal Sustainability and Responsibility
Sustainable and Multi-Modal Transportation
Climate Action
Housing
Downtown Vitality
Open Space
Infrastructure Maintenance
Homelessness
Chart F1: Priorities from Participants Who Wished to Change Goals
Financial Plan Page 36 Page 448 of 954
Financial Planning Process
Local Revenue Measure Annual Citizen Oversight Meeting & Advisory Body Input
The Community Forum also met requirements related to oversight of the City’s one-and-a-half percent
local sales tax, by providing an opportunity for the Revenue Enhancement Oversight Committee (REOC)
to review and discuss the use of the revenue generated by the Local Revenue Measure with the
community.
The community set the spending priorities for the measure funding as (not numbered by priority): 1)
Protect Financial Stability, 2) Community Safety and Emergency Preparedness, 3) Creek and Flood
Protection, 4) Address Homelessness, 5) Safe and Clean Public Spaces, 6) Economic Development and
Business Retention, 7) Youth/Senior Services and Recreation Facilities, 8) Street Maintenance and
Transportation, 9) Open Space/Natural Areas Preservation and Maintenance, 10) Other Services and
Projects.
Photos from the 2023-25 Community Forum held on January 26, 2023 at the City’s Ludwick Community Center.
Goal Setting Workshop
The final phase of goal setting process is deciding on the highest priority goals for the City to accomplish
over the next two years. For the 2023-25 Financial Plan, the City Council chose four focused Major City
Goals (details on goals included on page 40).
Economic Resiliency,
Cultural Vitality, and
Fiscal Sustainability
Diversity, Equity &
Inclusion (DEI)
Housing &
Homelessness
Climate Action, Open
Space & Sustainable
Transportation
Financial Plan Page 37 Page 449 of 954
Financial Planning Process
Budget Calendar
November 15, 2022: Setting the Stage
Provide Council with the framework for
the two-year financial plan and present an
update on the City’s fiscal status, general
plan, and Major City Goal work programs.
January 10, 2023: Budget Foundation
Review with Council the goal setting
process, approve City’s budget and fiscal
policies, discuss economic outlook, and
review current and long-term capital
outlook plan.
January 26, 2023: Community Forum
Council Meetings
February 11, 2023: Council Goal-Setting
Workshop
Review and prioritize goals and establish
strategic priorities for the 23-25 Financial
Plan.
April 18, 2023: Strategic Budget Direction
Provide feedback and guidance to City
Manager and staff regarding the draft
budget allocations and Major City Goal
work programs.
June 6, 2023: Preliminary Budget
Review 2023-25 Financial Plan and 2023-
24 Budget and adopt if there are no
changes directed by Council.
June 20, 2023: Final Adoption of Budget (if
needed)
NOVEMBER
2022
JUNE 2023
Community Surveys
Advisory Bodies
Letters from
Community Groups
Public Comment
Public Engagement
Community Forum FINANCIAL PLANNING FINANCIAL PLANNING Staff Budget
Preparation
Revenue & expenditure
forecasts
Departments prepare base
budgets and propose
operating changes.
Draft MCG work programs
Draft Capital Improvement
Plan
Prepare Financial Plan
Document
Post Budget Adoption Changes: As set forth in the City Charter, the Council may amend or supplement the budget at any time after its
adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget
as long as those changes will not have a significant policy impact nor affect budgeted year -end fund balances.
Financial Plan Page 38 Page 450 of 954
Strategic Priorities
Strategic initiatives guiding the 2023-25
Financial Plan
City Council Vision Statement
The City of San Luis Obispo is a dynamic community embracing its future while respecting
its past with core values of civility, sustainability, diversity, inclusivity, regionalism,
partnership, and resiliency.
In the planning process we are
committed to:
• Being honest and respectful in
our discussions.
• Participating with active
listening and respectful
challenging
• Believing in the process and the
outcome
• Allowing for differences
• Learning from the past
• Making the process and
progress visible
• Committing to transparency
around priorities
• Engaging the public
With the plan we are committed to:
• Creating a clear plan with agreed upon
purposes.
• Making sure our stated values are clear.
• Making defining, concrete statements
• Including measurables, budgets, and
timelines for all items
• Making the plan accessible
In implementation we are committed to:
• Doing what we say
• Remaining open to new information, new
ideas, and public input
• Scheduling bi-annual updates with
Council on progress
• Considering emerging issues
Financial Plan Page 39 Page 451 of 954
Strategic Priorities
MAJOR CITY GOALS (MCGs)
Goal Statements (not numbered by priority)
1. Economic Resiliency, Cultural Vitality and Fiscal Sustainability
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, 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.
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.
Financial Plan Page 40 Page 452 of 954
Strategic Priorities
Major City Goals in the 2023-25 Financial Plan
The four Major City Goals for the 2023-25 Financial Plan cover the same areas 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 and have been operationalized have been removed from the work programs and have
been incorporated in the departments’ base budget and normal operations or core services. The strategy
behind the more consolidated 2023-25 work programs is that simplicity brings about focus and will allow
the organization to emphasize and prioritize action items that are most important to the community and
achievable with the available resources. The challenge with moving some 2021-23 work program tasks to
operations is that there may be less council and community visibility on efforts that generally support
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 goals; the budget cannot always be
used as a measurement tool, as budget allocations do not
necessarily reflect the level of work and focus on identified
goal areas. 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 and structures 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.
The Major City Goal work programs highlight which work efforts require new funding and the associated
funding can be found in the operating and capital budget sections of the Financial Plan. The rest of the
identified work program tasks will be executed using existing resources. The operating program writeups
link department goals with the overarching Major City Goals and identify involvement in achieving goals.
Major City Goal Reader’s Guide (for next section)
The following sections for each Major City Goal include:
1. Goal Overview – The overview section includes: MCG Goal Statements, expectations, responsible
departments, and strategic approaches.
2. MCG Task Detail – The second section for each goal includes the specific tasks/actions associated
with each goal.
Financial Plan Page 41 Page 453 of 954
Strategic Priorities: ER,CV & FS
1.Economic Resiliency, Cultural Vitality & Fiscal Sustainability (ER,CV & FS)
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.
Specific tasks listed on next page.
Financial Plan Page 42 Page 454 of 954
Strategic Approach # Task/ ActionStatus (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 1.2g. Continue to support new and expanded private childcare options through the use of grant funding and other programs. Ongoing work effort.ADM (ED&T)OngoingTable M-1. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work ProgramStrategic Priorities: ER,CV & FSFinancial Plan Page 43Page 455 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M-1. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work Program1.2h. 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&ROngoing1.2i. 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&ROngoing1.2j. 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 stabilization 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 Q2Strategic Priorities: ER,CV & FSFinancial Plan Page 44Page 456 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M-2. 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.FinOngoing1.5b. 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/UtilFY24 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 amongstemployees.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/HROngoingStrategic Priorities: ER,CV & FSFinancial Plan Page 45Page 457 of 954
Strategic Priorities: DEI
2.Diversity, Equity and 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 2.1 – 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 2.2 – 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 2.3 – 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 remove screening and selection bias in hiring
processes.
Strategy 2.4 – Enhance Inclusive & Equitable Workplace Environment: 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.
Financial Plan Page 46 Page 458 of 954
Strategic Priorities: DEI
Strategy 2.5 – 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 2.6 – 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 2.7 – 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 2.8 – 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 strategies. 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.
Specific tasks listed on next page.
Financial Plan Page 47 Page 459 of 954
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 M‐2: Diversity, Equity, Inclusion Major City Goal Work ProgramStrategic Priorities: DEI Financial Plan Page 48Page 460 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M‐2: Diversity, Equity, Inclusion Major City Goal Work Program2.55. Community‐based Policing & Restorative Practices 2.5a. Promote DEI best practices in Police Department (PD) recruting and hiring efforts.Ongoing work effort in collaboration with Admin‐DEI, PD, and HRAdmin‐DEI/PD/HROngoing2.5b.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 WorksAdmin/PD/Public WorksOngoing2.5c. Continue to work with community partners (PAC and Roundtable) to give the community a voice in policing and that 21st Century Policing Recommendations areimplemented where possible.Ongoing work effortPDOngoing2.5d. Use Community partnerships to help build a 5‐year strategic plan to create transparency and legitimacy.Ongoing work effortPDOngoing2.66. 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‐DEIOngoing2.6b. 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 EmployeeCommittee, 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 multicultural center experience.Ongoing work effortAdmin‐DEIOngoing2.6 e. 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‐DEIOngoing2.8c. 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‐DEIOngoingStrategic Priorities: DEI Financial Plan Page 49Page 461 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M‐2: Diversity, Equity, Inclusion Major City Goal Work Program2.8d. Provide financial assistance to qualified families through City funded scholarships foryouth related programs such as: before/after‐school childcare, spring break & summer camps, swim lessons, and after‐school sport programs.Ongoing work effortParks & RecXOngoingMembers of the City's DEI CommitteeStrategic Priorities: DEI Financial Plan Page 50Page 462 of 954
Strategic Priorities: Housing and Homelessness
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.
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.
Financial Plan Page 51 Page 463 of 954
Strategic Priorities: 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
Financial Plan Page 52 Page 464 of 954
Strategic Priorities: 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.
Specific tasks listed on next page.
Financial Plan Page 53 Page 465 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department (s)New Funding Completion Date3.1Housing 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 or explore using other countywide systems shared with other regional partners.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 M‐3: Housing and Homelessness Major City Goal Work ProgramStrategic Priorities: Housing and Homelessness Financial Plan Page 54Page 466 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department (s)New Funding Completion DateTable M‐3: 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; CDDFY24 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 effortCDD 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 effortP&R xFY 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 effortPW x FY 25 Q43.4 Public Safety3.4 a. Maintain SLOPD bike patrol program as staffing allows Ongoing work effortPDFY 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 effortPDxFY 24 Q1Strategic Priorities: Housing and HomelessnessMembers of the City's Homeless Response TeamFinancial Plan Page 55Page 467 of 954
Strategic Priorities: Climate Action
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, City Farm SLO, 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 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.
Financial Plan Page 56 Page 468 of 954
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.
Specific tasks listed on next page.
Strategic Priorities: Climate Action
Financial Plan Page 57 Page 469 of 954
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 20254.1Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035New 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 byExample task 1.1.B.Ongoing work effortAdministration 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 effortAdministration 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. Continue to monitor impacts to Municipal Code 8.11 (All‐Electric New Buildings), and ifnecessary return to Council with an alternative approach to achieving the City's climate action goals as they relate to new buildings. Ongoing work effortAdministration / CDDOngoing4.1i. 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 / CDDOngoing4.1j. 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 effortUtilitiesOngoing4.1k. 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 effortAdministrationOngoing4.2b. Complete installation of adopted trail systems at the Irish Hills Natural Reserve and at Miossi Open Space.Ongoing work effortParks and RecreationOngoing4.2c. Identify and implement trail alignment revisions, if feasible, and other solutions to reduceerosion and wet weather closures and address trail user safety and enjoyment at ReservoirCanyon Natural Reserve.Ongoing work effortParks and RecreationOngoing4.2d. Continue Open Space education activities including the "hikes with experts" series, JuniorRanger Camp, and ongoing public information and programming, with emphasis on equity and equitable access.Ongoing work effortParks and Recreation / AdministrationOngoingTable M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work ProgramsStrategic Priorities: Climate Action Financial Plan Page 58Page 470 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M‐4. 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 effortParks and Recreation Ongoing4.2f. Continue ongoing Ranger Service patrol of Open Space areas ensuring compliance with the CityOpen Space regulations, the safety of users, and protection of natural resources values and functions.Ongoing work effortParks and Recreation Ongoing4.2g. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan (ifadopted in May 2023).Ongoing work effortParks 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 / AdministrationOngoing4.2k. Continue partnership with City Farm SLO to install site security and access measures and toimplement California Farmland Conservancy Program grant scope of work.New work effortAdministration / Parks and RecreationOngoing4.3Preserve 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: Continuedesign 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 WorksXOngoingStrategic Priorities: Climate Action Financial Plan Page 59Page 471 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M‐4. 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 WorksX FY25 Q44.3g. Active Transportation Plan (ATP) Tier 1 Network ‐ Foothill/California Railroad Crossing Improvements: Complete design and initiate construction of federally‐funded pedestrian safetyimprovements at railroad crossing.Ongoing work effort Public Works FY25 Q44.3h. Active Transportation Plan (ATP) Tier 1 Network ‐ Prado Creek Bridge Replacement: Complete design of new bridge, including sidewalks, protected bike lanes, and additional vehicular lanes toaccommodate existing and future traffic demand. Includes reconstruction of S. Higuera/Pradointersection with additional capacity and protected intersection features to improve safety for pedestrians and cyclists. Ongoing work effort Public Works X Ongoing4.3i. Active Transportation Plan (ATP) Tier 1 Network ‐ Prado/US 101 Interchange: Complete projectapproval and environmental document phase of project, and initiate design phase for newinterchange, which includes extension of Prado Road over US 101 to Froom Ranch Way, with new northbound on/off‐ramps, four auto lanes, center median/left turn lanes, sidewalks and protected bike lanes. Includes realignment of Elks Lane and signalization of the Prado/Elks intersection.Ongoing work effortPublic WorksXOngoing4.3j. 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 WorksOngoing4.3k. 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 ConnectedCommunity Task 4.2.A and in the APMP Strategies 1.C.New work effortPublic Works / AdministrationXOngoing4.3l. 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 donewithout diverting resources from delivering priority active transportation infrastructure projects.New work effortAdministrationFY25 Q44.3m. 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 calledfor in CAP Connected Community Tasks 6.1.A, 6.1.B, and 6.1.D.Ongoing work effortAdministrationOngoing4.4 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 Q4Strategic Priorities: Climate Action Financial Plan Page 60Page 472 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs4.4d. 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 effort Public WorksOngoing4.4e. Provide post‐disaster recovery resources and emergency preparedness education to vulnerablecommunity 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 effortAdministrationOngoing4.4h. 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 aproject scope, and drafting a request for proposals. New work effortAdministrationFY25 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 effortAdministrationOngoing4.4k. 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 effortAdministrationOngoing4.5c. 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 effortAdministrationOngoing4.5d. 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 effortAdministrationOngoing4.5f. 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 effortAdministration2024 Q3Strategic Priorities: Climate Action Financial Plan Page 61Page 473 of 954
Strategic Approach # Task/ ActionStatus (if in progress already)Responsible Department(s)New FundingCompletion DateTable M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs4.5g. 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 effortAdministration Ongoing4.5h. 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 effortAdministration Ongoing4.5i. Complete steps and present recommendations and options to maximize the reuse of wastewater per the "Road Map" presented to the City Council.Ongoing work effortUtilitiesOngoingStrategic Priorities: Climate Action Financial Plan Page 62Page 474 of 954
Local Revenue Measure
Local Revenue Measure G-20 (1.5 Cent Local Sales Tax)
Introduction
In November 2020, the City’s voters approved a local sales tax measure that will provide an
additional revenue for community services and infrastructure improvements. As a General
Purposes Tax, the City’s Local Revenue Measure (LRM) expenditures are categorized as General
Fund capital improvement project costs or operating costs. The community set the spending
priorities for the measure funding as:
Protect Financial Stability
Community Safety and Emergency Preparedness
Creek and Flood Protection
Address Homelessness
Safe and Clean Public Areas
Economic Development and Business Retention
Youth/Senior Services and Recreation Facilities
Street Maintenance and Transportation (includes bicycle and pedestrian improvements)
Open Space/Natural Areas Preservation and Maintenance
Other Services and Projects
The proposed uses of the revenue is recommended by the Revenue Enhancement Oversight
Commission (REOC), an advisory body to the City Council, based on input from the community,
the Major City Goals established by the City Council, and in alignment with updated revenue
projections.
Revenue and Expenditure Forecast Highlights
The Local Revenue Measure is the City’s largest revenue source. It is also one most volatile
to economic conditions and recessionary impacts.
The current revenue projections reflect a cooling of the economy over 2023-25 but not a
recession. The forecast of revenues may change over time and updates will be provided to
the REOC and Council.
Higher labor and raw material costs along with inflationary pressures drive taxable good
prices upward and increase Measure G-20 revenue; however, higher prices have also
significantly increased the City’s own expenditure costs.
Because the City prepares a five-year CIP which is revised and adopted every two years, all the
projects listed in the budget have been identified in previous reports to Council and the REOC.
Given the cost escalation of existing projects and limited avail able funding, no new projects or
services were considered for 2023-25, with the exception of emergency storm-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 within projected
revenues.
Financial Plan Page 63 Page 475 of 954
Local Revenue Measure
Certain categories such as Street Maintenance and Transportation account for the highest
percentage of the budget because of the cost to deliver projects such as the annual street paving
project . The operating budget reflects investment closely aligned with the community forum
feedback, with Addressing Homelessness, Open Space Preservation, and Streets Maintenance
within the top five budget allocations.
Balance between Capital Investment and Operating Budget Support
Previous input from the community and REOC has led to the prioritization of LRM funds for
infrastructure investments with a long-term balance of about 85% allocated to capital and 15%
allocated to operating costs. Operating program costs frequently follow the implementation of
capital projects as the assets require maintenance and upkeep ; for instance, the construction of
a new park will require staff to maintain it. In addition, operating programs deliver essential
services that align with the community’s current priorities, such as addressing homelessness.
Given this interrelationship, the 2023-25 percentage splits below represent a budget that
adequately supports the replacement and maintenance of assets, while also addressing
expectations from the community for service delivery.
CIP Expenditure
Percentage
Operating Expenditure
Percentage
FY 2023-24 77.2% 22.8%
FY 2024-25 76.9% 23.1%
Local Revenue Measure Uses
Expenditures are broken into the ten categories as identified in the Measure G-20 (Local Revenue
Measure) ballot language.
Table 4: Local Revenue Measure Categories 2023-24 2024-25 2-Year
Total
1 Community Safety and Emergency Preparedness $5,919,118 $3,455,404 $9,374,522
2 Address Homelessness $796,897 $809,912 $1,606,809
3 Open Space/Natural Areas Preservation and
Maintenance
$1,587,865 $2,304,027 $3,891,891
4 Street Maintenance and Transportation (includes
bicycle and pedestrian improvements)
$10,252,816 $9,973,701 $20,226,517
5 Creek and Flood Protection $3,143,150 $1,692,224 $4,835,374
6 Youth/Senior Services and Recreation Facilities $1,615,882 $4,975,719 $6,591,601
7 Protect Financial Stability $515,519 $536,284 $1,051,803
8 Safe and Clean Public Areas $765,767 $1,510,109 $2,275,877
9 Economic Development and Business Retention $425,000 $425,000 $850,000
10 Other Services and Projects $1,230,742 $1,215,060 $2,445,802
11 Capital Reserve $4,000,000 $4,000,000 $8,000,000
12 Grand Total $30,252,756 $30,897,440 $61,150,195
Table 3: LRM Expenditure by Type ( Capital vs. Operating)
Financial Plan Page 64 Page 476 of 954
Local Revenue Measure
$18,859,587 , 40%
$8,000,000 , 17%
$5,425,316 , 11%
$4,490,571 , 10%
$3,530,000 , 7%
$2,625,000 , 6%
$2,162,802 , 5%
$1,475,113 , 3%$550,000 , 1%
Chart 5: 2023-25 LRM Uses - Capital ($47.1 million)
Street Maintenance and Transportation (includes bicycle and pedestrian improvements)
Capital Reserve*
Youth/Senior Services and Recreation Facilities
Community Safety and Emergency Preparedness
Creek and Flood Protection
Open Space/Natural Areas Preservation and Maintenance
Other Services and Projects
Safe and Clean Public Areas
Economic Development and Business Retention
*With the 2021-23 Financial Plan, Council adopted a fiscal policy to maintain a committed reserve of 20% of
the capital improvement plan budget for the purposes of offsetting unanticipated cost increases, unforeseen
conditions, and urgent unanticipated projects. Over the last two years, the reserve was 100% exhausted;
therefore, the 2023-25 Financial Plan includes an annual allocation in anticipation of similar trends.
Financial Plan Page 65 Page 477 of 954
Local Revenue Measure
$4,883,951 , 35%
$1,606,809 , 11%
$1,366,930 , 10%
$1,305,374 , 9%
$1,266,891 , 9%
$1,166,285 , 8%
$1,051,803 , 8%
$800,764 , 6%
$300,000 , 2%
$283,000 , 2%
Chart 6: 2023-25 LRM Uses - Operating ($14 million)
Community Safety and Emergency Preparedness
Address Homelessness
Street Maintenance and Transportation (includes bicycle and pedestrian improvements)
Creek and Flood Protection
Open Space/Natural Areas Preservation and Maintenance
Youth/Senior Services and Recreation Facilities
Protect Financial Stability
Safe and Clean Public Areas
Economic Development and Business Retention
Other Services and Projects
Financial Plan Page 66 Page 478 of 954
Line ID2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget
1 Address Homelessness 796,897$ 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 Police Equipment 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 Hydro cleaner (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$
52 Operating
Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 67 Page 479 of 954
Line ID2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget
53 Environmental Compliance Inspector (FTE=1)124,748$ 132,803$
54 Environmental 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 Sustainability & 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
103 Accounting Assistant (FTE=1)88,474$ 94,056$
104 Application Systems Specialist (1 FTE) (FTE=1)154,154$ 157,690$
Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 68 Page 480 of 954
Line ID2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget
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 Maintenance 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 Transportation 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 55,000$ 150,000$
131 ATP Implementation: Pedestrian Facility Improvements (see footnote 1)-$ 60,000$
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 Ped and 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$
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$
Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 69 Page 481 of 954
Line ID2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget
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 Replacement 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.
Footnote 1: This table represents the LRM portion of the budget only, not the entire project budget. This task has $45,000 of TDA
funding allocated in 2023-24 and an additional $90,000 forecasted in FY 2024-25. See the capital section of the Financial Plan for the full
project budget details.
Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 70 Page 482 of 954
FINANCIAL PLAN OVERVIEW
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Budget at a Glance
Budget at a Glance – General Fund
The City of San Luis Obispo 2023-25 Financial Plan outlines the detailed approach to address community
priorities in a fiscally responsible manner. The Financial Plan is aligned with the City Council’s Major City
Goals, supports the ongoing services of the City, maintains and replaces its assets, and pays its debt. The
Financial Plan also provides clear direction and authority to spend funds appropriated according to the
strategic plan efforts and the services outlined. This Budget at a Glance section concentrates on the
General Fund. You can find information pertaining to the Water and Sewer Utilities, Parking, and Transit
in the “Business Activities” section of the budget.
General Fund Budget (in thousands)1 A. FY 23-24 B. FY 24-25 C. Two-Year Total
1 Total Revenue $116,173,988 $119,405,109 $ 235,579,097
2 Total Expenditures $118,817,379 $114,754,112 $233,571,491
3 Revenue Over/(under) Expenses $(2,643,391) $4,650,998 $2,007,606
The Financial Plan is centered around three strategic planning measures:
1)Prioritization of storm recovery and preparation for future events
2)The 2023-25 strategic priorities (Major City Goals) that were developed through extensive
community outreach and input, resulting in four strategic areas that provide for synergies
between work programs to achieve the desired outcome.
3)Local Revenue Measure (LRM) community direction
1 Expenditures are over revenues in FY 2023-24 for two reasons: (1) unbudgeted storm costs that will be temporarily
paid for using the City’s reserves and (2) there are one-time expenditures using fund balance from the prior year.
The City is in compliance with its budget policy to maintain a balanced budget over the two‐year period of the
Financial Plan (Column C).
Table 7:
Financial Plan Page 73 Page 485 of 954
Budget at a Glance
Investment in Storm Recovery
The City experienced multiple storms during the first few months of the 2023 calendar year and while
initial damage assessments have been done, the number and scope of the repairs continues to evolve as
staff is able to access impacted areas to fully 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 extent of damages, the City Manager activated the Fiscal Health Contingency Plan in January 2023.
The Fiscal Health Contingency Plan provides a framework for responding to adverse fiscal circumstances
like natural disasters and is intended to help the City’s budget stay in good financial condition by limiting
expenditures.
The storms have resulted in two separate emergency declarations at the Federal, State and local level and
as of publishing of this Financial Plan, the City is only eligible for reimbursement of costs related to the
January storms. Staff is working to clearly identify and distinguish costs attributable to the January storm
and March storm events. As of the middle of May 2023, the City has spent just under $4 million in
response to the storms, including staff time, supplies, emergency protective measures, debris removal
and repair of damages to City infrastructure. In addition to the costs incurred to date, Public Works
estimates $4.3 million of future expense to make high-priority permanent repairs to damage caused by
the January and March storms and an additional $9.5 million of expense to address medium and low
priority work. Staff is currently in the process of identifying which of the medium and low priority work
should be done, based upon need, availability of funding, and eligibility for reimbursement. The 2023-25
Financial Plan includes a recommended allocation of $2.75 million to address these damages in FY 2023-
24 (this funding supplements the $9 million use of operating reserve that has been programmed into the
long-term forecast ($4.5 million in both the current year and next) for a total $11.75 million allocation for
storm related response and repairs. Several emergency repair projects are already underway and some
will begin in FY 2023-24, 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.
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.
Photo credit: Jonathan Roberts
Financial Plan Page 74 Page 486 of 954
Budget at a Glance
Investment in Strategic Plan through Major City Goal Work Programs
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 the Office of DEI, Housing Policy and Programs, and the Mobile
Crisis Unit were developed as Major City Goal work efforts, and 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.
Graphic 8: City Programs that Support Major City Goals2
This graphic shows some of the core programs that help support Major City Goals. The budget next to
the program is the total cost to operate the program (existing and new investments, as reflected in the
operating budget section of the financial plan).
2 The intention of this graph is not to quantify total Major City Goal investment but provide context and order of
magnitude on the investments into the City’s core services that help achieve Major City Goal work efforts.
Major City Goals
Economic Resiliency, Cultural Vitality & Fiscal Sustainability
Housing & Homelessness
Diversity, Equity, & Inclusion
Climate Action, Open Space, & Sustainable Transportation
Financial Plan Page 75 Page 487 of 954
Budget at a Glance
Investment in Strategic Plan for Local Revenue Measure Funding
For details on the individual objectives and work programs, please see the Strategic Priorities section.
33%
15%
13%
11%
8%
6%
4%
4%3%2%1%
Chart 9: 2023-25 LRM OPERATING USES ($61.2 M)
Street Maintenance and Transportation (includes bicycle
and pedestrian improvements)($20.2M)
Community Safety and Emergency Preparedness ($9.3M)
Capital Reserve ($8 M)
Youth/Senior Services and Recreation Facilities ($6.6M)
Creek and Flood Protection ($4.8M)
Open Space/Natural Areas Preservation and Maintenance
($3.9M)
Other Services and Projects ($10.4M)*
Safe and Clean Public Areas ($2.3M)
Address Homelessness ($1.6M)
Protect Financial Stability ($1M)
Economic Development and Business Retention ($850k)
Local Revenue Measure Priorities
Protect Financial Stability
Community Safety & Emergency Prep.
Creek & Flood Protection
Address Homelessness
Safe & Clean Public Areas
Economic Dev. & Business Ret.
Youth/Senior Services
Street Maintenance & Transp.
Open Space Preservation & Maintenance
Other Services and Projects
*Includes allocation to the capital reserve.
Financial Plan Page 76 Page 488 of 954
Budget at a Glance
Where the Money Comes From
Revenue – General Fund
Like most municipalities in California, various tax revenues
provide the largest source of revenue for the General Fund,
financing most of the general government services. User fees for
services revenue from this source will make up 13% of the
anticipated revenue.
Tax and Franchise Revenue
Sales Tax revenue forecasts are based on the City’s sales tax
consultant, HdL’s forecasts. There is no recession forecasted in
2023-25; however, assumptions include a flattening of sales tax
and Transient Occupancy Tax with a conservative 2% growth in FY
2024-25. The County of San Luis Obispo provides Property Tax
estimates, and the remaining tax revenue forecasts are based on
historical trends and current economic conditions.
Table 11: Tax and Franchise Revenue FY 2023-24 FY 2024-25 Variance
1 Sales Tax - General $22,578,995 $23,166,049 3%
2 Prop 172 Sales Tax $498,988 $508,968 2%
3 Sales Tax - Local Revenue Measure $30,262,098 $30,897,602 2%
4 Property Taxes $15,524,672 $15,982,628 3%
5 Property Tax in Lieu of VLF $6,475,114 $6,669,367 3%
6 Transient Occupancy Tax $10,704,000 $10,918,080 2%
7 Utility User Tax $5,710,320 $5,881,630 3%
8 Franchise Fees $1,854,000 $1,910,000 3%
9 Business Tax $3,252,293 $3,317,338 2%
10 Cannabis Tax $1,100,000 $1,450,000 32%
11 Total $97,960,479 $100,701,662 3%
Fees for Service and Other Revenue
Fee revenue budgets are updated based on forecasted activity levels and annual CPI inflators (if
applicable). 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
course of the 2023-25 Financial Plan.
Tax and Franchise
Revenue
87%
User Fees and Other Revenue
13%
Chart 10
Financial Plan Page 77 Page 489 of 954
Budget at a Glance
1 Police Revenue $611,917 $611,917 0%
2 Fire Revenue $1,577,836 $1,577,836 0%
3 Development Review $6,275,536 $6,585,331 5%
4 Parks & Rec Revenue $2,021,599 $2,068,693 2%
5 Business Licenses $459,000 $468,000 2%
6 Cannabis Fee Revenue $207,600 $232,600 12%
7 Other Revenue $1,010,016 $1,010,016 0%
8 SB1 Road Repair $1,177,994 $1,259,276 7%
9 Grants and Subventions $664,511 $682,279 3%
10 Total $14,006,009 $14,495,948 3%
Tax and Fee Revenue Trends
The 2023-35 Financial Plan assumes a flattening of most revenue types followed by conservative growth
in the outer years of the forecast. High fee revenues between fiscal years 19-20 and 20-21 were due to
high interest earnings and record high development activity, resulting in building permit and plan check
revenue. These were partially offset by reduced tax revenue remittals during the pandemic.
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-25 24-25 25-26 26-27 27-28In thousandsGraph 13: Tax and Fee Revenue Trends
Sales & Use Tax Property Tax Other Tax Revenue Total Fees & Other Revenue
Voter approved Local
Sales Tax Measure
FY 2023-24 FY 2024-25 Variance Table 12: User Fees and Other Revenue
Financial Plan Page 78 Page 490 of 954
Budget at a Glance
What the Money is Spent On
The City of San Luis Obispo provides daily services to the community and incurs operating and capital
expenditures. It fulfills the ongoing services in the General Fund through its employees in Public Safety,
Parks & Recreation, Public Works, and Community Development which are supported by internal services
departments such as Administration, City Attorney, Finance, and Human Resources. For each service, the
capital cost of any equipment, infrastructure, or facility, needed to deliver the service, must be considered
in addition to the ongoing operation and labor cost.
Like most municipalities, the City is faced with balancing rising costs, limited resources, and continuing to
provide excellent levels of service to its citizens. This balance is achieved through the budget process when
departments undertake the analysis of budget needs and examination of work programs to find
economies and efficiencies that are expected of a prudent and fiscally conscious service organization.
The 2023-25 Financial Plan combines the strategic approach to the City Council’s Major City Goals, the
priorities of the local sales tax measure, and the City’s efforts to recover from the 2023 storm events.
The City’s annual operating budget for the General Fund totals $88 million and includes programs
reaching from Building and Safety, Development Review, Accounting, Purchasing, Emergency Response,
Aquatics, Golf, Senior Services, Police Patrol, Traffic Safety, Streets & Sidewalk Maintenance,
Transportation Planning, Sustainability, and the Urban Forest.
Table 14: General Fund Operating Budget by Category3
DEPARTMENT 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Internal Services:
2 Administration and IT $9,642,495 $10,453,389 $10,849,831 $11,003,659
3 City Attorney $1,374,705 $1,305,660 $1,425,044 $1,497,103
4 Finance & Non-departmental $3,051,001 $5,229,942 $3,880,664 $5,216,654
5 Human Resources $1,934,741 $1,684,948 $2,141,185 $2,246,535
6 Community Safety/Neighborhood Services:
7 Fire $17,074,525 $14,515,112 $15,273,559 $15,554,762
8 Police $22,581,983 $20,866,264 $22,086,053 $22,607,072
9 Community Services Group:
10 Community Services Group
Administration $660,112 $573,066 $740,534 $778,730
11 Community Development $7,810,879 $6,783,059 $8,212,711 $8,510,146
12 Parks and Recreation $5,122,628 $5,251,052 $5,706,331 $5,899,998
13 Public Works $15,580,965 $16,144,599 $17,718,046 $18,328,375
14 Solid Waste $185,882 $317,456 $341,459 $349,657
15 TOTAL GENERAL FUND $85,019,917 $83,124,548 $88,375,417 $91,992,693
3 Does not include transfers, cost allocation reimbursements, or projected operating budget savings.
Financial Plan Page 79 Page 491 of 954
Budget at a Glance
Table 15: Operating Budget Overview – General Fund
Program Enhancements
Program enhancements were included in the 2023-25 Financial Plan to adjust for forecasted workload
and service level requirements set forth within the strategic direction and service expectations. As such
the requests consider the following components:
A. Essential for the protection of health and safety.
B. Needed for the advancement of Major City Goals.
C. Needed to provide ongoing services to the community.
Table 16: General Fund SOBCs FY 23-24 FY 24-25 Total
1 One-time $1,494,767 $1,367,867 $2,847,633
2 General Fund $754,217 $731,917 $1,471,134
3 Funding Offset - Economic Development $396,000 $396,000 $792,000
4 Funding Offset - Affordable Housing Fund $150,000 $150,000 $300,000
5 Funding Offset - IT Fund $104,000 - $104,000
6 Funding Offset - Public Art Fund $90,550 $89,950 $180,500
7 Ongoing $478,907 $489,444 $968,351
8 General Fund $478,907 $489,444 $968,351
9 TOTAL $1,973,674 $1,857,311 $3,815,985
Staffing
72%
Contract
Services
9%
Other
Operating
Costs…
Transfers Out
7%
Debt Service
2%
Operating Budget by Type
Public Safety/Neighborhood
Services
43%
Internal
Services
20%
Community
Services
37%
Operating Budget by Category
Financial Plan Page 80 Page 492 of 954
Budget at a Glance
Capital Budget – General Fund
The City’s 20-year capital budget is a plan that identifies projects, needed funding, and timelines including
the impact of multi-year, and multi-department projects. Capital requirements are driven by the need to
maintain, upgrade, or replace existing ageing infrastructure, meet industry standards, population growth
and invest in new capital assets in alignment with the City’s major city goals and community need.
The Capital budget incorporates funding from the General Fund, the Local Revenue Measure, grants, and
various impact fees. The plan includes projects such as bridge replacements, street rehabilitation, urban
forest care, facilities and parks maintenance, and playground equipment.
Total General Fund Capital Expenditures
71%
20%
4%
2%2%1%
Chart 17: Capital Investment by Governmental Fund
Capital Outlay Fund Infractructure Investment Fund IT Replacement
Fleet Replacement Major Facility Maintenance Public Art Fund
Financial Plan Page 81 Page 493 of 954
Budget at a Glance
Table 18: Capital Expenditures
CIP by Fund (in thousands) 2023-24 2024-25 Variance
Capital Outlay $22,528,972 $23,155,166 3%
Fleet $805,000 $685,000 -15%
IT Replacement $869,028 $1,446,656 66%
Major Facilities Maintenance $822,000 $423,178 -49%
Infrastructure Investment $200,000 $12,750,000 6275%
Public Art Fund $325,000 $300,000 -8%
Total CIP Investment $25,550,000 $38,760,000 3%
Table 19: Repayment of General Fund Debt
Debt Issue – Asset Outstanding
Principal Annual Payment Final Year
FY 2024
2012 Refunding Bond (Damon Garcia Sport Fields) $2,415,000 $395,500 2030
2014 Revenue Bond – LOVR Overpass $6,275,000 $420,531 2045
2018 Refunding Bond (919 Palm Street & Dispatch Center) $8,904,430 $942,975 2039
2018 Lease – Fire Truck $36,245 $36,533 2024
2014 State Loan – Energy Conservation $46,886 $47,121 2024
Lease – Golf Carts $50,640 $11,014
$17,728,200 $1,853,674
General Fund Reserve Levels
Per the City’s Fiscal Policies (see Reference Material), the City maintains a minimum fund balance of 20%
of operating expenditures in the General Fund. This is considered the minimum level necessary to
maintain the City’s credit worthiness and to adequately address:
Economic uncertainties, local disasters, and other financial hardships or downturns in the local or
national economy.
Contingencies for unforeseen operating or capital needs.
Cash flow requirements.
In addition, the City now maintains a capital reserve of 20% of the annual Local Revenue Measure capital
budget to offset unanticipated cost increases and unforeseen conditions and thus provides for continued
investment in infrastructure maintenance and enhancement according to the adopted project list. The
reserve will be accounted for in the Capital Outlay Fund.
2023-24 2024-25
General Reserve4 $ 11.6 million $ 14.5 million
Capital Reserve $ 4 million $ 4 million
4 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 (93.75%), then reductions will be
made in future CIP.
Financial Plan Page 82 Page 494 of 954
CONSOLIDATED FINANCIAL PLAN
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Consolidated Financials
Combined Financials for all Major and Special Revenue Funds
Table C-1: Total Funding Sources – All Funds Combined
Revenue 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
%
Change
1 Tax & Franchise Revenue $94,247 $95,942 $97,960 $100,702 3%
2 Service Charges & Other Revenue
3 General Fund1 $13,052 $12,593 $14,006 $14,495 3%
4 Water Fund $25,525 $25,605 $27,284 $28,554 5%
5 Sewer Fund $19,290 $20,605 $21,457 $20,799 -3%
6 Parking Fund $5,164 $6,531 $10,203 $10,413 2%
7 Transit Fund $3,786 $14,857 $11,755 $11,965 2%
8 Assessment Revenue $2,339 $2,398 $2,416 $2,465 2%
9
10 Proceeds from Debt Financing
11 Water Fund $2,397 $873 $873 $0 -100%
12 Sewer Fund $46,556 $31,132 $31,132 $0 -100%
13 Parking Fund $0 $0 $46,315 $0 -100%
14 Total $212,357 $210,535 $263,402 $189,392 -28%
In thousands
1 Excludes estimates for storm reimbursements. See General Fund Forecast for detail.
Tax & Franchise
Revenue
44%
Service Charges
& Other
Revenue
39%
Proceeds from
Debt Financing
17%
Financial Plan Page 85 Page 497 of 954
Consolidated Financials
Table C-2: All Expenditures Combined – By Fund
Expenditures 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget % Change
General Fund2 $113,808 $107,805 $114,317 $114,754 0%
Business Activities
Water Fund $27,154 $41,573 $32,040 $31,614 -1%
Sewer Fund $52,840 $89,819 $23,028 $23,784 3%
Parking Fund $6,718 $14,180 $57,699 $10,230 -82%3
Transit Fund $3,658 $7,130 $10,302 $9,612 -7%
Special Revenue
Tourism Assessment $1,642 $1,577 $2,129 $2,168 2%
Downtown Assessment $222 $275 $275 $281 2%
Total $206,042 $262,359 $239,791 $192,443 -20%
In thousands
2 Excludes estimates for storm expenditures. See General Fund Forecast for details.
3 Variance due to budget for Cultural Arts District Parking Structure construction included in FY 2023-24. See
Parking Section for detail.
General Fund
53%
Water Fund
15%
Sewer Fund
11%
Parking Fund
16%
Transit Fund
4%
Tourism
Assessment
1%
Downtown
Assessment
<0%
Financial Plan Page 86 Page 498 of 954
Consolidated Financials
Table C-3: All Expenditures Combined – By Category
Expenditures 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
%
Change
Staffing $80,132 $78,339 $81,078 $84,820 5%
Contract Services $13,694 $16,223 $17,069 $16,795 -2%
Other Operating Expenses $26,228 $31,708 $33,261 $34,671 4%
Capital Investment $79,448 $129,422 $99,081 $41,396 -58%4
Debt $6,539 $6,666 $9,302 $14,761 59%5
Total $206,042 $262,359 $239,791 $192,443 -20%
In thousands
4 Variance due to budget for Cultural Arts District Parking Structure construction included in FY 2023-24. See
Parking Section for detail.
5 Increase due to payment of debt for Cultural Arts District Parking Structure starting in FY 2024-25. See Parking
Section for details.
Staffing
38%
Contract Services
8%Other Operating
Expenses
16%
Capital
Investment
32%
Debt
6%
Financial Plan Page 87 Page 499 of 954
Consolidated Financials
Table C-4: Fund Reserves
Fund Reservesi 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
General Fund
Operating $12,014 $13,727 $11,596 $14,526
Capital Outlay $3,426 $4,008 $4,000 $4,000
Water Fund $4,290 $4,719 $5,039 $5,259
Sewer Fund $2,320 $2,566 $2,745 $4,031
Parking Fund $840 $882 $991 $958
Transit Fund $715 $850 $850 $1,163
In thousands
Table C-5: Undesignated Fund Balance
Undesignated Fund
Balance/Working Capital
2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
General Fund $3,364 $1,644 $- $121
Water Fund $27,973 $13,521 $9,249 $5,872
Sewer Fund $41,352 $3,971 $30,274 $25,846
Parking Fund $9,092 $1,277 $1,010 $1,164
Transit Fund $2,108 $9,686 $10,838 $13,154
In thousands
i For policy requirements, please see Financial Policies in Reference Section
Financial Plan Page 88 Page 500 of 954
General Fund Five‐Year Forecast
(In Thousands) Footnote (A)
Actual
2021‐22
(B)
Budget
2022‐23*
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F)
Projected
2026‐27
(G)
Projected
2027‐28
Tax & Franchise Revenue
1 Sales & Use Tax 51,665 52,163 53,340 54,573 55,988 57,465 59,127
2 Sales Tax General 22,247 21,524 22,579 23,166 23,768 24,410 25,118
3 Public Safety (Prop 172)529 497 499 509 519 530 540
4 Measure G20 28,889 30,142 30,262 30,898 31,701 32,525 33,468
5 Property Tax 20,711 21,473 22,000 22,652 23,332 24,032 24,752
6 Transient Occupancy Tax 10,651 10,704 10,704 10,918 11,136 11,359 11,586
7 Utility Users Tax 5,420 5,544 5,710 5,882 6,058 6,240 6,365
8 Franchise Fees 1,978 1,800 1,854 1,910 1,967 2,026 2,067
9 Business Tax Certificates 2,823 3,158 3,252 3,317 3,417 3,519 3,590
10 Cannabis Tax 999 1,100 1,100 1,450 1,650 1,700 1,733
11 Total Tax & Franchise Revenue 94,247$ 95,942$ 97,960$ 100,702$ 103,549$ 106,340$ 109,220$
12 Fees for Service & Other Revenue
13 Police Services 555 688 612 612 624 637 649
14 Fire Services 1,502 1,458 1,578 1,578 1,609 1,642 1,674
15 Development Review 6,117 6,335 6,276 6,585 6,783 6,986 7,126
16 Parks & Recreation 1,718 1,969 2,022 2,069 2,110 2,152 2,174
17 Business Licenses 498 446 459 468 477 487 497
18 Cannabis Licenses 127 210 208 233 237 242 247
19 Other Revenues 466 711 2,188 2,269 2,376 2,473 2,574
20 Subventions & Grants 2,068 777 665 682 440 441 442
21 Storm Reimbursment ‐ ESTIMATE 1 4,208 4,208
22 Total Fees & Other Revenue $ 13,052 $ 12,593 $ 18,214 $ 18,703 $ 14,657 $ 15,059 $ 15,383
23 Total Revenue $ 107,299 $ 108,535 $ 116,174 $ 119,405 $ 118,206 $ 121,400 $ 124,604
24 Use of Funds
25 Staffing 67,639 65,401 67,427 70,620 71,968 73,672 75,279
26 Contract Services 7,836 9,575 9,380 9,249 8,822 8,998 9,178
27 Other Operating Expenditures 9,555 9,976 9,858 9,943 9,537 9,728 9,922
28 Cost Allocation (4,717) (4,462) (5,419) (5,582) (5,694) (5,808) (5,924)
29 Encumbrances from prior year 2,542
30 Storm Expenditures ‐ ESTIMATE 1 4,500 4,500
31 Total Operating Expenditure $ 80,313 $ 87,533 $ 85,746 $ 84,229 $ 84,633 $ 86,591 $ 88,456
32 Debt Service 1,997 1,992 1,854 1,769 1,761 1,550 1,549
33 Capital 30,575 22,484 29,728 27,269 27,868 28,488 29,123
34 Transfers Out/(In)923 296 1,490 1,487 1,896 2,263 2,678
35 Total Expenditure $ 113,808 $ 112,305 $ 118,817 $ 114,754 $ 116,157 $ 118,890 $ 121,806
36 2,000 2,000 2,000 2,000 2,000 2,000 2,000
37 Beginning Fund Balance (After
CalPERS ADP) $ 45,118 $ 36,609 $ 30,840 $ 26,196 $ 28,847 $ 28,896 $ 29,406
38 Revenue Over/(Under) Expenses $ (6,509) $ (3,770) $ (2,643) $ 4,651 $ 2,049 $ 2,509 $ 2,797
39 Ending Fund Balance $ 38,609 $ 32,840 $ 28,196 $ 30,847 $ 30,896 $ 31,406 $ 32,203
40 General Fund Reserve (see line 45)12,014 13,727 11,596 14,526 14,651 15,077 15,516
41 Revenue Stabilization Reserve 2,000 2,000 2,000 2,000 2,000 2,000 2,000
42 115 Pension Trust Fund 2,000 2,000 2,000 2,000 2,000 2,000 2,000
43 Restricted based on Audit 19,232 13,468 12,600 12,200 12,200 12,200 12,200
44 Undesignated Fund Balance $ 3,364 $ 1,644 $ 0 $ 121 $ 45 $ 129 $ 487
45 Reserve funded level (Policy=20%)20% 17% 20% 20% 20% 20%
2023‐25 Financial Plan
*FY 2022‐23 budget includes approved carryover, encumbrances, and budget amendments made throughout the year.
1 ‐ Unplanned storm response expenditures will be paid for out of the General Fund reserve. See "Budget at a Glance" section
for detail. This is not a budget appropriation but an estimate included in the forecast for planning purposes.
CalPERS Additional Discretionary Payment
(using prior year fund balance)
Table 20: General Fund Five Year Forecast
Financial Plan Page 89 Page 501 of 954
(A) (B) (C) (D) (E) (F) (G)
Actual Budget Projected Projected Projected Projected Projected
2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28
1 Revenue 27,922$ 26,478$ 28,156$ 28,554$ 38,754$ 32,185$ 33,657$
2 Charges for Services 24,148 24,440 26,384 28,352 30,552 31,983 33,455
3 46102‐Development Review Fees 22 26 26 26 26 26 26
4 46701‐Sales to Cal Poly 1,140 1,045 1,106 1,184 1,340 1,458 1,558
5 46702‐Water Sales 16,110 16,329 17,717 19,045 20,474 21,395 22,358
6 46703‐Utilities Base Charges 5,615 5,754 6,243 6,712 7,215 7,540 7,879
7 46704‐Reclaimed Water Sales 1,210 995 1,080 1,161 1,248 1,304 1,363
8 46708‐Utilities Set‐up Fees 177 130 60 60 60 60 60
9 46709‐Other Utilities Charges 0 1 1 1 1 1 1
10 46712‐Low Income Subsidy (15) (100) (100) (100) (100) (100) (100)
11 46713‐Cal Poly Capacity & Resilience 114 259 251 263 288 299 310
12 46799‐Use of COVID Rate Relief Program (225) ‐ ‐ ‐ ‐ ‐ ‐
13 Fines, Forefeitures, and Penalties 143 118 118 118 118 118 118
14 Grants and Subventions 1,849 963 698 ‐ ‐ ‐ ‐
15 Miscellaneous Fees and Special Assessments 49 ‐ ‐ ‐ ‐ ‐ ‐
16 Licenses, Permits, and Franchises 40 ‐ ‐ ‐ ‐ ‐ ‐
17 Long‐Term Debt Proceeds1 2,397 873 873 ‐ 8,000 ‐ ‐
18 Other General Government Revenue2 (704) 84 84 84 84 84 84
19 Impact Fees 5,162$ 1,370$ 800$ 800$ 800$ 800$ 800$
20 Impact Fees3 5,162 1,370 800 800 800 800 800
21 Expenditure by Category 27,154$ 41,573$ 32,040$ 31,614$ 39,338$ 34,510$ 35,531$
22 Capital Asset Expense4 5,706 17,976 6,845 5,319 11,979 5,826 5,975
23 Debt Services 2,307 2,443 1,870 1,869 1,866 2,391 2,390
24 General Government 2,517 2,312 2,826 3,250 3,738 3,924 4,121
25 Operations 11,449 13,593 14,995 15,474 15,877 16,309 16,798
26 Salaries and Benefits 5,175 5,249 5,503 5,702 5,878 6,060 6,247
27 Expenditure by Function 27,154$ 41,573$ 32,040$ 31,614$ 39,338$ 34,510$ 35,531$
28 Water Administration/Engineering 3,663 1,499 1,514 1,607 1,675 1,698 1,748
29 Water Source of Supply 11,072 14,753 11,930 12,436 13,207 12,884 13,885
30 Water Treatment 4,593 11,848 7,984 8,502 7,583 9,058 8,461
31 Water Distribution 3,772 8,629 6,691 4,675 12,101 5,855 6,184
32 Water Resources 501 606 634 623 642 662 682
33 Utility Billing 266 308 324 346 356 367 378
34 General Government 2,517 2,312 2,826 3,250 3,738 3,924 4,121
35 Non Departmental5 772 1,618 136 175 35 62 72
36 Change in Financial Position (Revenues minus $ 5,930 (13,725)$ (3,083)$ (2,260)$ 216$ (1,525)$ (1,074)$
37 Working Capital ‐Beginning 28,503 34,725 20,729 16,967 14,001 14,052 12,362
38 CALPERS ADP 272 272 679 706 165 165 165
39 Working Capital ‐ After CALPERS 6 $ 34,725 20,729$ 16,967$ 14,001$ 14,052$ 12,362$ 11,123$
40 Operating Reserve (20%)4,290 4,719 5,039 5,259 5,472 5,737 5,911
41 Rate Stabilization (10%)2,286 2,313 2,507 2,694 2,903 3,039 3,179
42 UFL Trust Fund 176 176 176 176 176 176 176
43 Unreserved Working Capital Year End 27,973$ 13,521$ 9,246$ 5,872$ 5,501$ 3,411$ 1,857$
4Includes carryover balances for multi‐year CIP projects.
5Non‐Departmental includes staffing contingencies, miscellaneous CIP expenditures, and assigned project balances.
6Working Capital reflects audit adjustments.
2023‐25 Financial Plan
in thousands
1This includes the loan for the Water Treatment Plant Efficiency Project and a forecasted loan for the 30" Pipeline Replacement on Santa Rosa
between Stenner Creek and Highland.
3Impact fees are separated from other water revenues because they are restricted to activities compliant to AB 1600 (Government Code §§
66000 et seq), and cannot be used for general water operations.
2Other General Government Revenue includes a fair market adjustment for investments in 2021‐22.
Table 21: Water Fund Five Year Forecast
Financial Plan Page 90 Page 502 of 954
(A) (B) (C) (D) (E) (F) (G)
Actual Budget Projected Projected Projected Projected Projected
2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28
1 Revenue 65,846$ 51,737$ 52,590$ 20,799$ 21,544$ 22,329$ 23,026$
2 Charges for Services 19,852 18,934 19,784 20,512 21,257 22,042 22,739
3 46102‐Development Review Fees 22 26 26 26 26 26 26
4 46104‐Wye Abandonment/Installation Fees 5 ‐ ‐ ‐ ‐ ‐ ‐
5 46701‐Sales to Cal Poly 1,147 1,026 1,013 1,008 991 984 960
6 46703‐Utilities Base Charges 4,893 4,816 5,008 5,209 5,417 5,634 5,831
7 46705‐Sewer Service Charges 13,342 12,792 13,304 13,836 14,389 14,965 15,489
8 46708‐Utilities Set‐up Fees 205 60 60 60 60 60 60
9 46709‐Other Utilities Charges 9 70 1 1 1 1 1
10 46712‐Low Income Subsidy (13) (100) (100) (100) (100) (100) (100)
11 46713‐Cal Poly Capacity & Resilience 244 244 473 473 473 473 473
12 Fines, Forefeitures, and Penalties 145 120 118 118 118 118 118
13 Grants and Subventions 97 1,386 1,386 ‐ ‐ ‐ ‐
14 Miscellaneous Fees and Special Assessments 53 ‐ ‐ ‐ ‐ ‐ ‐
15 Licenses, Permits, and Franchises 87 85 85 85 85 85 85
16 Long‐Term Debt Proceeds1 46,556 31,132 31,132 ‐ ‐ ‐ ‐
17 Other General Government Revenue2 (945) 80 84 84 84 84 84
18 Impact Fees 3,826$ 1,190$ 600$ 600$ 600$ 600$ 600$
19 Impact Fees3 3,826 1,190 600 600 600 600 600
20 Expenditure by Category 52,840$ 89,819$ 23,028$ 23,784$ 29,192$ 23,290$ 32,887$
21 Capital Asset Expense4 41,240 76,988 9,305 3,631 8,090 1,689 10,761
22 Debt Services 1,380 1,381 1,382 7,006 7,099 7,090 7,088
23 General Government 2,368 2,574 3,104 3,570 4,105 4,311 4,526
24 Operations 2,668 3,632 3,746 3,850 3,995 4,115 4,239
25 Salaries and Benefits 5,184 5,245 5,491 5,727 5,903 6,085 6,273
26 Expenditure by Function 52,840$ 89,819$ 23,028$ 23,784$ 29,192$ 23,290$ 32,887$
27 Wastewater Admin and Eng 2,746 2,837 2,965 2,889 2,959 2,983 3,036
28 Wastewater Collection 4,506 22,009 10,337 4,866 7,199 2,903 8,023
29 Environmental Programs 265 282 319 326 336 386 427
30 Water Resource Recovery 41,607 60,290 4,960 4,955 7,429 5,481 9,593
31 Utility Billing 272 310 324 346 356 367 378
32 Water Quality Lab 698 922 864 844 870 897 924
33 General Government 2,368 2,574 3,104 3,570 4,105 4,311 4,526
34 Non Departmental5 378 595 154 180 35 59 76
35 SRF Loan ‐ ‐ ‐ 5,809 5,903 5,903 5,903
36 Change in Financial Position 16,832$ (36,892)$ 30,161$ (2,385)$ (7,048)$ (362)$ (9,261)$
37 Working Capital ‐Beginning 35,237 47,774 10,603 40,072 36,967 29,749 29,218
38 CALPERS Additional Pmt 280 280 692 721 169 169 169
39 Working Capital ‐ After CALPERS6 47,774$ 10,603$ 40,072$ 36,967$ 29,749$ 29,218$ 19,787$
40 Operating Reserve (20%)2,320 2,566 2,745 4,031 4,221 4,320 4,425
41 Rate Stabilization (5%)969 932 966 1,003 1,040 1,079 1,114
42 Other Reserves (i.e. UFL Trust Fund, SRF Loan)3,134 3,134 6,087 6,087 6,087 6,087 6,087
43 Unreserved Working Capital Year End 41,352$ 3,971$ 30,274$ 25,846$ 18,401$ 17,731$ 8,161$
4Includes carryover balances for multi‐year CIP projects.
5Non‐Departmental includes staffing contingencies, miscellaneous CIP expenditures, and assigned project balances.
6Working Capital reflects audit adjustments.
2023‐25 Financial Plan
in thousands
3Impact fees are separated from other sewer revenues because they are restricted to activities compliant to AB 1600 (Government Code §§ 66000 et
seq), and cannot be used for general sewer operations.
1This includes the State Revolving Fund Loan for the Water Resource Recovery Facility upgrade. The City anticipates that loan repayment will begin July
2Other General Government Revenue includes a fair market adjustment for investments.
Table 22: Sewer Fund Five Year Forecast
Financial Plan Page 91 Page 503 of 954
(A)
Actual
2021‐22
(B)
Budget
2022‐23
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F)
Projected
2026‐27
(G)
Projected
2027‐28
Revenue
1 Federal ‐ 5307 Operating 1,678,604 2,647,859 1,694,054 1,727,935 1,762,494
2 Federal ‐5307 Preventative
Maintenance 198,609 ‐ 210,765 214,980 219,280
3 Federal ‐ 5307 Capital 4,799,979 3,471,830 3,575,985 3,647,504 3,720,455 3,794,864
4 State TDA (Transportation
Development Act) STA 305,458 359,404 443,547 456,853 470,559 484,676 499,216
5 State TDA LTF 1,018,950 1,794,954 2,727,295 2,809,114 2,893,387 2,980,189 3,069,594
6 State ‐ APCD (Air Pollution Control ‐ ‐ ‐ ‐ ‐ ‐ ‐
7 PG&E Grant ‐ ‐ ‐ ‐
8 Farebox Revenue 172,957 200,000 240,000 250,000 260,000 260,000 260,000
9 Cal Poly Agreement 537,500 650,000 750,000 750,000 772,500 795,675 819,545
10 State ‐ SB1 ‐ ‐ 8,722 8,722 8,722 8,722 8,722
11 State ‐ LCTOP (Low Carbon Transit Ops
Program)‐ 291,000 ‐ ‐ ‐ ‐ ‐
12 ARPA Discretionary ‐ 4,100,000 4,100,000 4,100,000 ‐ ‐ ‐
13 FTA 5339 B Discretionary ‐ ‐ ‐ ‐ ‐ ‐ ‐
14 Interest on Investment 51,618 13,313 13,579 13,851 14,128 14,410 14,699
15 Investment FMV Adjustment (186,365)‐ ‐ ‐ ‐ ‐ ‐
16 Misc Revenue 152 ‐ ‐ ‐ ‐ ‐ ‐
17 State of Good Repair (SGR) 8,468 ‐ ‐ ‐ ‐ ‐ ‐
18 Federal Stimulus Grants 149 ‐ ‐ ‐ ‐ ‐ ‐
19 TOTAL REVENUES $3,786,100 $14,856,509 $11,754,973 $11,964,524 $9,971,619 $10,207,042 $10,448,413
20 Expenditures & Obligations
21 Staffing 334,738 306,115 457,758 474,693 498,428 523,349 549,516
22 Contract Services 2,427,829 2,895,950 3,078,597 3,078,597 3,170,955 3,266,084 3,364,066
23 Fuel 340,952 320,000 350,000 385,000 385,000 385,000 385,000
24 Maintenance 205,794 240,000 255,000 265,000 283,550 303,399 324,636
25 Other Operating Expenditures 39,422 124,513 1,089,516 1,136,506 1,193,331 1,252,997 1,315,647
26 Cost Allocation Transfer to GF 226,183 365,544 463,491 477,396 486,944 496,683 506,616
27 Capital 83,057 2,878,157 4,607,466 3,794,674 4,260,629 232,295 4,152,812
28 TOTAL Expenditures & Obligations: $3,657,975 $7,130,279 $10,301,827 $9,611,865 $10,278,836 $6,459,806 $10,598,294
29 CHANGES IN FINANCIAL POSITION
30 Beginning Fund Balance $2,715,598 $2,823,007 $10,536,682 $11,977,273 $14,317,377 $13,997,606 $17,732,287
31 Revenue Over/(Under) Expenses 128,125 7,726,230 1,453,146 2,352,659 (307,217) 3,747,236 (149,881)
32 Ending Fund Balance before CalPERS $2,843,723 $10,549,237 $11,989,828 $2,352,659 $14,010,161 $17,744,842 $17,582,406
33 CalPERS Additional Discretionary
Payment 20,716 12,555 12,555 12,555 12,555 12,555 12,555
34 Ending Fund Balance $2,823,007 $10,536,682 $11,977,273 $14,317,377 $13,997,606 $17,732,287 $17,569,851
35 Policy Reserve Level ‐ 20%714,984 850,424 850,424 1,163,438 1,203,641 1,245,502 1,289,096
36 Undesignated Fund Balance $2,108,023 $9,686,258 $10,838,401 $13,153,939 $12,793,964 $16,486,784 $16,280,754
2023‐25 Financial Plan
Table 23: Transit Fund Five Year Forecast
Financial Plan Page 92 Page 504 of 954
Table 24: Parking Fund Five Year Forecast
Financial Plan Page 93
(A)
Actual
2021‐22
(B)
Budget
2022‐23*
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F) Proje
2026‐27
(G) Proje
2027‐28
REVENUES
1 Service Charges
2 Parking Meter Revenues 2,210,191 2,268,500 4,876,000 4,876,000 5,688,700 5,688,700 5,688,700
3 Parking Structure Collections 999,138 1,328,450 3,242,100 3,388,400 3,655,700 3,655,700 3,667,300
4 Long‐Term Parking Revenues 623,639 844,900 695,300 766,300 768,800 743,500 759,500
5 Lease Revenues 635,545 487,800 456,300 456,300 456,300 456,300 456,300
6 Parking In‐Lieu Fees ‐ 20,600 23,824 23,824 23,824 23,824 23,824
7 Total Services Charges 4,468,514 4,950,250 9,293,524 9,510,824 10,593,324 10,568,024 10,595,624
8 Fines & Forfeitures 928,636 793,500 852,100 852,100 852,100 852,100 852,100
9 Interest on Investment (348,317) 62,000 19,900 11,900 12,100 17,900 22,800
10 Transfer in from GF (ARPA) 700,000
11 Other Revenues 115,393 25,000 37,800 37,800 54,200 43,300 45,100
12 TOTAL REVENUES 5,164,226 6,530,750 10,203,324 10,412,624 11,487,924 11,470,124 11,501,024
13 Proceeds from Debt Financing** 46,315,169
14 TOTAL REVENUES INCL. DEBT FINANCING 5,164,226 6,530,750 56,518,493 10,412,624 11,487,924 11,470,124 11,501,024
15 EXPENDITURES
16 Staffing 1,574,054 1,917,920 1,922,948 2,006,346 2,092,534 2,182,721 2,279,268
17 Contract Services 786,535 584,065 895,746 607,661 619,814 632,211 644,855
18 Other Operating Expenditures 552,351 623,459 702,860 694,888 738,601 799,681 867,973
19 General Government (CAP) 869,887 872,976 1,019,048 1,049,619 1,102,100 1,157,205 1,215,066
20 Operating Transfers Out 235,233 235,233 368,233 372,223 376,333 380,566 384,926
21 Total Operating Expenditures 4,018,060 4,233,653 4,908,835 4,730,737 4,929,382 5,152,384 5,392,087
22 Easement Expenses (one‐time)‐ 755,000 ‐ ‐
23 Capital Improvement Plan Projects 1,844,160 8,340,700 48,594,961 1,382,467 1,631,665 1,702,292 1,107,600
24 TOTAL DEBT SERVICE**855,278 850,841 4,195,421 4,117,141 4,038,829 3,960,482 3,882,099
25 TOTAL EXPENDITURES 6,717,497 14,180,195 57,699,217 10,230,346 10,599,876 10,815,158 10,381,786
CHANGES IN FINANCIAL POSITION
26 BEGINNING FUND BALANCE 11,585,166 9,931,200 3,287,929 2,061,818 2,179,200 3,067,152 3,722,019
27 Revenue Over/(Under) Expenses ($1,553,271)($7,649,445)($1,180,724) 182,278 887,952 654,867 1,119,160
28 ENDING BALANCE/WORKING CAPITAL
BEFORE CALPERS ADP 10,031,895 2,281,755 2,107,206 2,244,096 3,067,152 3,722,019 4,841,178
29 CalPERS ADP 100,654 61,896 45,388 64,896 64,896 64,896 64,896
30 9,931,241 2,219,859 2,061,818 2,179,200 3,067,152 3,722,019 4,841,178
31
ENDING BALANCE/WORKING CAPITAL
Policy Reserve Level ‐ 20% 839,582 882,350 990,725 954,091 992,776 1,036,300 1,083,132
32 CalPERS 115 Trust Fund 61,003 61,003 61,003 61,003 61,003 61,003
33 UNRESERVED WORKING CAPITAL 9,091,658 1,276,506 1,010,090 1,164,106 2,013,373 2,624,716 3,697,043
2023‐25 Financial Plan
* Includes budget adjustments made throughout the year
**Debt service number for FY 2023‐24 and beyond also includes the anticipated debt payment for CAD‐PS which Council will take action on at a later date.
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OPERATING BUDGETS – GENERAL FUND
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Operating Budgets
Fee Revenue
Fee Revenue by Category
Part of the City’s revenue comes from cost recovery fees for services to the community and rendered by
the City’s operating departments. The cost recovery levels are determined every five years and approved
by the City Council. The levels of cost recovery are defined in the City’s adopted financial policies.
User Fee Cost Recovery Levels
In setting user fees and cost recovery levels, the following factors are considered:
1.Community-Wide Versus Special Benefit. The level of user fee cost recovery should
consider the community-wide versus special interest nature of the program or activity.
The use of general-purpose revenues is appropriate for community-wide services, while
user fees are appropriate for services that are of special benefit to easily identified
individuals or groups.
2.Service Recipient Versus Service Driver. After considering community-wide versus special
interest benefit of the service, the concept of service recipient versus service driver should
also be considered. For example, it could be argued that the applicant is not the
beneficiary of the City's development review efforts: the community is the primary
beneficiary. However, the applicant is the driver of development review costs, and as
such, cost recovery from the applicant is appropriate.
3.Effect of Pricing on the Demand for Services. The level of cost recovery and related
pricing of services can significantly affect the demand and subsequent level of services
provided. At full cost recovery, this has the specific advantage of ensuring that the City is
providing services for which there is genuinely a market that is not overly stimulated by
artificially low prices.
Conversely, high levels of cost recovery will negatively impact the delivery of services to
lower income groups. This negative feature is especially pronounced, and works against
public policy, if the services are specifically targeted to low -income groups.
4.Feasibility of Collection and Recovery. Although it may be determined that a high level
of cost recovery may be appropriate for specific services, it may be impractical or too
costly to establish a system to identify and charge the user. Accordingly, the feasibility of
assessing and collecting charges should also be considered in developing user fees,
especially if significant program costs are intended to be financed from that source.
Financial Plan Page 97 Page 509 of 954
Operating Budgets
Fee Revenue
Table R-1: Fire
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Fire Department Permits 98,529 108,000 108,000 108,000
2 Fire Alarm Permits 10,994 10,010 10,010 10,010
3 Fire Plan Check & Inspection 379,865 350,000 350,000 350,000
4 Medical ER Recovery 201,991 216,938 218,452 218,452
5 R1 Inspection Fees 329,197 357,525 351,000 351,000
6 Cal Poly Fire Services 273,567 361,684 361,684 361,684
7 CUPA Inspection Fees 187,019 172,800 172,800 172,800
8 Other Fire Dept Revenue 21,195 5,890 5,890 5,890
9 Total Fire Revenue 1,502,356 1,582,847 1,577,836 1,577,836
Table R-2: General Government & Other Revenue
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Business Licenses 498,089 445,911 459,000 468,000
2 Cannabis Operator License 127,380 177,000 207,600 232,600
3 Other Revenue 465,600 529,930 2,188,010 2,269,292
4 Interest on Investment1 (1,194,319) (1,270,000) 230,000 230,000
5 Fines and Forfeitures 134,699 153,071 153,071 153,071
6 Miscellaneous Revenue 613,360 626,945 626,945 626,945
7 SB1 – Road Maintenance 911,849 1,019,914 1,177,994 1,259,276
8 Grants & Subventions 2,067,135 587,328 664,511 682,279
9 Zone 9 Streambed Clearance 81,166 120,000 120,000 120,000
10 Police Training Grant (POST) 65,800 - 50,000 50,000
11 Law Enforcement SB229 Grant 145,185 140,000 140,000 140,000
12 AB939 Reimbursement 190,196 327,328 354,511 372,279
12 Other Grants/Subventions2 1,584,787 - - -
13 Total Other Revenue ($) 3,158,208 1,740,169 3,519,121 3,652,171
1 The City experienced significant negative Fair Market Value adjustments in FY 2021-22 and FY 2022-23, explaining
the negative revenue. This revenue source is highly volatile and dependent on market conditions. The 2023-25
budget assumes a conservative forecast of $230,000 which is based on historical averages for this revenue source.
2 Most grant revenue budgets are adjusted throughout the year as grants are awarded and are generally offset by
an expenditure budget adjustments.
Financial Plan Page 98 Page 510 of 954
Operating Budgets
Fee Revenue
Table R-3: Community Development
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Building Permits 2,954,876 2,921,700 2,561,860 2,689,953
2 Encroachment Permits 295,643 323,340 324,437 340,659
3 Code Enforcement Fines 61,695 60,000 79,617 79,617
4 Planning & Zoning Fee 470,462 416,195 611,597 642,177
5 Development Review Fees 395,360 341,228 387,008 406,358
6 Plan Check Fees3 1,280,615 299,000 1,180,266 1,239,279
7 Infrastructure Plan Ck & Inspection 522,041 1,432,352 970,693 1,019,227
8 Engineering Dev Review Fees 136,274 123,803 160,058 168,061
9 Total CDD Fee Revenue ($) 6,116,966 5,917,618 6,275,536 6,585,331
Table R-4: Police
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Police Department Permits 5,027 5,100 4,011 4,011
2 Tobacco Permits 28,421 29,000 30,450 30,450
3 Alarm Permits - Contract (PD) 80,204 90,000 90,000 90,000
4 Police Issued Parking Fines 80,969 70,000 70,000 70,000
5 Admin Citations - Safety 95,204 152,833 125,833 125,833
6 Accident Reports 4,333 3,400 3,400 3,400
7 Collision Investigation 1,139 3,000 3,000 3,000
8 Witness Fees 4,400 1,606 1,606 1,606
9 Tow Release Fees 15,824 12,000 12,000 12,000
10 Second Response Fees 1,437 1,200 1,200 1,200
11 DUI Cost Recovery 25,622 20,000 20,417 20,417
12 Other Police Revenue 212,914 230,796 250,000 250,000
13 Total Police Fee Revenue ($) 555,492 618,935 611,917 611,917
3 Fiscal Policy Section 2.H.4 allows the Finance Director to make appropriations (up to 65% of revenue) and the
associated budget adjustments from the Plan Check revenue account into operating budget to cover the cost of
services provided. Historically, this was done periodically throughout the year, therefore, the 2022-23 adopted
budget only reflects 35% of expected revenue budgeted. Beginning in FY 2023-24, the entire revenue and
expenditure budgets will be appropriated at the beginning of the fiscal year , explaining variances on line 6. This is
an administrative change and has no net fiscal impact to the General Fund.
Financial Plan Page 99 Page 511 of 954
Operating Budgets
Fee Revenue
Table R-5: Parks & Recreation
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Library Rental 4,780 16,290 6,500 6,816
2 Indoor Rental & Use Fees 54,285 65,100 65,100 65,100
3 Outdoor Rental & Use Fees 66,494 129,960 135,003 135,253
4 Special Events Insurance 7,877 10,000 12,000 12,000
5 Sales Taxable 11,852 10,000 10,000 10,000
6 Adult Athletic Fees 103,148 154,362 161,598 168,833
7 Youth Athletic Fees 63,619 55,000 57,750 60,638
8 Instruction Fees 84,501 97,830 102,722 107,858
9 Special Event Fees - App/Permit 30,653 33,293 30,000 30,000
10 Youth Services Childcare 630,369 639,806 663,616 687,416
11 Youth Services Camps 167,010 154,275 155,980 163,202
12 Junior Ranger Camps 5,808 4,982 5,230 5,477
13 Aquatics Daily Use Fees 89,743 115,175 121,000 121,000
14 Swim Instruction Fees 86,617 75,108 82,700 82,700
15 Multi Day Swim Passes 59,898 44,383 55,000 55,000
16 Therapy Pool Fees 3,642 16,304 16,000 16,000
17 Driving Range Fees 8,860 12,900 13,000 13,000
18 Golf Greens Fees 178,024 235,180 220,000 220,000
19 Golf Rental Fees 6,070 11,232 6,000 6,000
20 Other Parks & Rec Revenue 40,963 58,482 74,000 74,000
21 Special Events - City Sponsored 149 13,583 3,400 3,400
22 Golf Cart Rentals 14,050 29,675 25,000 25,000
23 Total Parks & Rec Revenue ($) 1,718,411 1,982,920 2,021,599 2,068,693
Financial Plan Page 100 Page 512 of 954
Operating Budgets
Transfers
Interfund Transfers
The City’s General Fund receives reimbursements and operating transfers for various services and
activities that are provided by General Fund operating programs. In turn, the General Fund provides
funding to various functions for specific uses. The amounts shown below represent the anticipated
funding that will be transferred between the funds.
Table T-1: Operating Transfers
Fund 2023-24 2024-25
Transfer out Transfer In Transfer out Transfer In
1 General Fund $8,023,982 $12,884,446 $7,935,223 $13,177,471
2 Local Revenue Measure $8,202,756 $8,497,440
3 Public Art Fund $90,550 $89,950
4 Gas Tax Fund $1,389,292 $1,419,353
5 Housing Fund $207,000 $207,000
6 TIF Fund $280,000 $280,000
7 TBID Fund $42,816 $43,672
8 Parking Fund $368,233 $372,223
9 Sewer Fund $1,192,689 $1,228,470
10 Water Fund $1,075,110 $1,107,363
11 IT Replacement Fund $256,000 $152,000
12 Public Safety Equipment Fund $391,322 $387,334
13 Debt Service Fund $1,852,660 $1,767,889
14 Insurance Fund $6,000,000 $6,000,000
15 Total Operating Transfer $21,128,428 $21,128,428 $21,332,694 $21,332,694
Financial Plan Page 101 Page 513 of 954
Operating Budgets
Transfers
Table T-2: Replacement and Capital Transfers
The City currently invest funding into the maintenance and replacements of its Fleet assets, its
Information Technology Infrastructure, and its Major Facilities through designated funds. This allows for
funding to be available when scheduled replacements and maintenance work is needed. The individual
expenditure is accounted for under the City’s Capital Improvement Plan which includes a replacement
schedule for the City’s fleet proposed over the Financial Plan period.
Fund 2023-24 2024-25
Transfer out Transfer In Transfer out Transfer In
1 General Fund $6,500,000 $3,610,000
2 LRM $22,050,000 $22,400,000
3 TDA Bikeways $45,000 $90,000
4 Debt Service Fund $2,200,000
3 Capital Outlay $22,573,972 $23,245,166
4 Fleet $805,000 $685,000
5 IT Replacement $869,028 $1,446,656
6 Major Facilities Maintenance $822,000 $423,178
7 Infrastructure Investment $5,400,000 -
8 Public Art Fund $325,000 $300,000
9 Total $30,795,000 $30,795,000 $26,100,000 $26,100,000
Table T-3: Reimbursement Transfers
These transfers reimburse the General Fund for direct cost incurred for service to the City’s Enterprise
and Agency Funds. The cost comes largely from internal services departments such as City Administration
(including IT), Human Resources, City Attorney’s office, and Finance. It is annually assessed through the
City’s Cost Allocation Plan (CAP).
Fund 2023-24 2024-25
Transfer out Transfer In Transfer out Transfer In
1 General Fund $5,419,410 $5,581,992
2 Water Fund $1,751,033 $1,803,564
3 Sewer Fund $1,911,466 $1,968,810
4 Parking Fund $1,019,048 $1,049,619
5 Transit Fund $463,491 $477,396
6 Whale Rock Fund $274,372 $282,603
7 Total $5,419,410 $5,419,410 $5,581,992 $5,581,992
Financial Plan Page 102 Page 514 of 954
Operating Budget
General Fund
OPERATING BUDGET-GENERAL FUND
EXPENDITURE OVERVIEW
The City has nine operating departments with 74 service programs. Eight of the departments are either
fully or partially budget in the City’s General Fund. The Utilities Department as well as the Parking and
Transit programs which are administered by the Public Works Department are accounted for as business-
activities and the related information is presented in the Business Activities section of the Financial Plan
document.
This section provides an overview of all the General Fund departments and programs. It includes
departmental mission statements, introduces the departments and their contributions towards strategic
goals and performance measures, presents operating programs and cost, and details employee and
position counts.
How to Read the Budget Tables
Note 1: FY 2021-22 includes a $12.4 million additional discretionary payment to CalPERS to help reduce
the City’s unfunded pension liability (R-11307). The expenditure was distributed through the departments
proportionally to the department’s unfunded liability obligation. This explains the higher-than-expected
variance in that year, and specifically the “Staffing” category within the operating departments tables.
Financial Plan Page 103 Page 515 of 954
Operating Budget
General Fund
2023-25 Operating Department Budgets
Overall, the General Fund operating budget increased by approximately 6%. Variances at the
program level above 15% are explained in the department sections of the Financial Plan. Common
reasons why program budgets change are:
•Council approved salary and/or benefit changes1
•Increase in cost of doing business at existing levels (generally due to inflation or contractual
obligations)
•Previously approved or proposed operating budget changes (SOBCs)
•Moving budget between programs (net neutral fiscal impact)
•Revenue offsetting adjustments (net neutral fiscal impact)
DEPARTMENT 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Internal Services:
2 Administration and IT $9,642,495 $10,453,389 $10,849,831 $11,003,659
3 City Attorney $1,374,705 $1,305,660 $1,425,044 $1,497,103
4 Finance & Non-departmental $3,051,001 $5,229,942 $3,880,664 $5,216,654
5 Human Resources $1,934,741 $1,684,948 $2,141,185 $2,246,535
6 Community Safety/Neighborhood Services:
7 Fire $17,074,525 $14,515,112 $15,273,559 $15,554,762
8 Police $22,581,983 $20,866,264 $22,086,053 $22,607,072
9 Community Services Group (CSG):
10 CSG Administration $660,112 $573,066 $740,534 $778,730
11 Community Development $7,810,879 $6,783,059 $8,212,711 $8,510,146
12 Parks and Recreation $5,122,628 $5,251,052 $5,706,331 $5,899,998
13 Public Works $15,580,965 $16,144,599 $17,718,046 $18,328,375
14 Solid Waste $185,882 $317,456 $341,459 $349,657
15 TOTAL GENERAL FUND $85,019,917 $83,124,548 $88,375,417 $91,992,693
1 At the time of FY 2022-23 budget development, negotiations were underway for several of the City’s
labor groups. A staffing contingency for Council approved parameters was budgeted in the “non-
departmental” cost center. Since the agreed upon wage adjustments are now in effect, the costs are
included in each department’s base budget for the 2023-25 Financial Plan; therefore, many departments
have a significant variance in staffing when compared to budget year 2022-23.
Table 25:
Financial Plan Page 104 Page 516 of 954
Operating Budget
General Fund
25%
20%
17%
12%
9%
7%
4%
2%2%1%1%
Chart 26: 2023-24 Department Operating Budget
GENERAL FUND
Police
Public Works
Fire
Administration/IT
Community Development
Parks and Recreation
Finance
Human Resources
City Attorney
CSG Administration
25%
20%
17%
12%
9%
6%
6%
2%2%1%0%
Chart 27: 2024-25 Department Operating Budget
GENERAL FUND
Police
Public Works
Fire
Administration/IT
Community Development
Parks and Recreation
Finance
Human Resources
City Attorney
CSG Administration
Solid Waste
Financial Plan Page 105 Page 517 of 954
Operating Program
Enhancements
Enhancements – General Fund
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 lack of available funding.
As a cost control measure, the City requires that increases or decreases to budget line items for new or
enhanced services or significant increases in existing services to be approved by the City Manager before
being presented to Council for consideration and appropriation. A request can be brought forth for a
variety of reasons, but is generally considered under the following circumstances:
A. Essential for the protection of health and safety.
B. Needed for the advancement of Major City Goals.
C. Needed to provide ongoing services to the community.
Significant Operating Budget Requests (SOBCs) are divided into two categories: 1) one- time during the
Financial Plan period for specific deliverables without ongoing budget impacts; 2) ongoing to adjust the
operating program budget for long-term service delivery.
Given the tight fiscal forecast and unanticipated storm response and 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.
SOBC details can be found within the individual departmental sections.
Financial Plan Page 106 Page 518 of 954
Operating Program
Enhancements
Combined Requests by Funding Source
Table 28: General Fund SOBCs FY 23-24 FY 24-25 Total
1 One-time $1,494,767 $1,367,867 $2,847,633
2 General Fund $754,217 $731,917 $1,471,134
3 Funding Offset - Economic Development $396,000 $396,000 $792,000
4 Funding Offset - Affordable Housing Fund $150,000 $150,000 $300,000
5 Funding Offset - IT Fund $104,000 - $104,000
6 Funding Offset - Public Art Fund $90,550 $89,950 $180,500
7 Ongoing $478,907 $489,444 $968,351
8 General Fund $478,907 $489,444 $968,351
9 TOTAL $1,973,674 $1,857,311 $3,815,985
Funding Source Descriptions
One-time General Fund SOBCs
These requests will 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. These SOBCs will be funded using that balance and additional
projected unassigned fund balance at the end of FY 2022-23. Council will reevaluate the City’s fiscal
condition at the FY 2023-24 mid-year review and propose making an additional CalPER s payment if
possible.
Budget Recommendations Using Economic Development Balance
Per Resolution 11203 and the Council Agenda Item #19 from December 14, 2020, $3.4 million of
undesignated FY 2018‐19 General Fund Balance was allocated towards economic development efforts
and homeless services. Economic Development staff continues to seek opportunities to optimize the use
of this assigned fund balance which has a balance of about $1.4 million. The remaining balance will fund
2023-25 budget requests directly related to Economic Development, thus freeing up unassigned general
fund balance.
Budget Recommendations Funded Through Othe r Sources (Affordable Housing, IT Fund, Public Art)
Given the limited availability of General Fund dollars, staff recommend using these funding sources for
budget requests that have a direct nexus with the purpose of the proposed fund. The budget will be
transferred into the General Fund operating budget.
Ongoing General Fund SOBCs
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. They will become part of the
base budget.
Financial Plan Page 107 Page 519 of 954
Operating Program
Enhancements
Total Enhancements by Major City Goal Investment
Climate Action,
$50,000
Core Services,
$992,674
DEI, $20,000
Economic,
$606,000
Housing &
Homelessness,
$305,000
Chart 29: FY 2023-24 GENERAL FUND SOBC INVESTMENT
BY TYPE
Financial Plan Page 108 Page 520 of 954
Operating Program
Enhancements
Table 31: SOBCs
Department SOBC Funding Source FY 23-24 FY 24-25
Core Services
1 CDD IT Project Management Services IT Replacement Fund $104,000 $0
2 Fire Public Safety Equipment
Replacement General Fund One-time $102,810 $107,011
3 HR Contract .5 Human Resources
Specialist - Onboarding General Fund One-time $46,895 $48,583
4 HR Preventative Mental Health
Services Program for Public Safety General Fund Ongoing $35,000 $37,000
5 HR SLO Onboarding Assistance
Resources Program General Fund One-time $6,000 $6,000
6 P&R Contract Recreation Coordinator
(Public Art) Public Art Fund Balance $90,550 $89,950
7 P&R Volunteer Program Budget General Fund Ongoing $26,525 $24,775
8 Police Community Policing Software General Fund Ongoing $15,000 $15,000
9 Police Increased Cost for Animal Services
Operations General Fund Ongoing $50,000 $50,000
10 Police Investigative Software General Fund Ongoing $11,000 $11,000
11 Police Public Safety Equipment
Replacement General Fund One-time $68,512 $60,323
12 Police Reclassification - Communications
Manager General Fund Ongoing $105,567 $105,630
13 PW Annual MS4 permit fee - SWRCB General Fund Ongoing $18,000 $18,500
14 PW City Hall Temporary Restroom General Fund Ongoing $12,000 $12,600
15 PW Contract Mowing Services at Parks General Fund One-time $100,000 $100,000
16 PW New Regular - Urban Forester (1
FTE) General Fund Ongoing $96,690 $100,065
17 PW Utilities and Janitorial Services for
New City Buildings General Fund Ongoing $89,125 $89,875
18 Solid Waste Rate Manual Updates through
IWMA General Fund One-time $15,000 $0
19 Climate Action, Open Space, and Sustainable Transportation
20 Admin/IT 10 Tall Tree Planting
Implementation (MCG 4.2g) General Fund One-time $50,000 $50,000
21 Diversity, Equity, Inclusion
22 P&R Youth Programs Scholarship Funds
(MCG 2.8d) General Fund Ongoing $20,000 $25,000
23 Economic Resiliency, Cultural Vitality & Fiscal Sustainability
24 Admin/IT Buy Local and Eat Local Bonus
(MCG 1.2a)
Economic Development
Funding $125,000 $125,000
25 Admin/IT Childcare Grants (MCG 2.8d) Economic Development
Funding $25,000 $25,000
Financial Plan Page 109 Page 521 of 954
Operating Program
Enhancements
Department SOBC Funding Source FY 23-24 FY 24-25
26 Admin/IT Community Activations (MCG
1.4e)
Economic Development
Funding $75,000 $75,000
27 Admin/IT EDD/Beacon Data (MCG 1.2e) Economic Development
Funding $11,000 $11,000
28 Admin/IT EDSP Implementation (MCG 1.1a) Economic Development
Funding $75,000 $75,000
29 Admin/IT La Loma Adobe Rehabilitation
(Phase I) (MCG 1.4f) General Fund One-time $100,000 $0
30 Admin/IT Shop Local Business Promotion
(MCG 1.2a)
Economic Development
Funding $85,000 $85,000
31 CDD Historic Resources Inventory
(MCG 1.4g) General Fund One-time $100,000 $150,000
32 PW Exploration of a Potential
Stormwater Utility General Fund One-time $10,000 $10,000
33 Housing and Homelessness
34 CDD Below Market Rate Administrator Affordable Housing Fund $150,000 $150,000
35 CDD Hotel Voucher Program - CAPSLO
(MCG 3.2a) General Fund One-time $25,000 $0
36 CDD Margarita Area Specific Plan
Update General Fund One-time $100,000 $200,000
37 CDD Safe Parking (Location TBD) (MCG
3.2d) General Fund One-time $30,000 $0
Total $1,973,674 $1,857,311
Table 31 (continued): SOBCs
Financial Plan Page 110 Page 522 of 954
Operating Budget – General Fund
Capital Projects’ Impact on Operating Cost
The Capital Improvement Plan (CIP) and its annual
implementation is one of the primary functions of local
government. Through its adopted CIP, the City meets
community needs by providing and maintaining the
infrastructure required for the community’s economic
vitality, neighborhood wellness, housing,
transportation, sustainability, active and passive
recreation, public safety, cleanliness, and other basic
amenities.
In the context of Capital Infrastructure, it is important to analyze the impact on operating budgets
required to maintain the assets for longevity and appropriately adjust the annual budget
appropriation. With the passage of local sales tax measure G20, the City’s annual revenue budget
increased by over $15 million in FY 2021-22. Most of this funding is programmed to infrastructure
projects to bring the total annual capital investment to over $29 million. To complete these
projects, the City added engineering, project delivery, and management staff resources required
to design, permit, construct, and maintain the assets over both the two-year and five-year time
horizon.
In order to assess the impact of the City’s capital project plan and the resulting asset
maintenance, Capital improvement projects must be presented with a full fiscal impact, including
any specific ongoing dollar impacts before given approval. Those amounts are then incorporated
into the operating budgets for future appropriations.
Table 32: Council Agenda Report - Fiscal Impact Table (Example)
$29.7 mil
2023-24
General Fund
Operating
Budget
$85.7 mil
Financial Plan Page 111
2023-24
General Fund
Capital
Budget
Page 523 of 954
Operating Budgets
Employee Summary – All Major Funds Combined
Employee Summary
Department specific organization charts can be found in the Department Operating Budget section. There
are two tables included in the section below that provide:
1.Ongoing Approved FTEs – These fully-benefited positions are approved by Council on an ongoing
basis and generally are essential to delivering the City’s core services.
2.Contract and Supplemental employees – It is the policy of the City of San Luis Obispo to hire
supplemental employees to meet the temporary needs of the City that result from emergencies,
special projects of a short-term nature, extra-help, seasonal work, unexpected surges in workload,
occasional hours for an ongoing need, and to provide substitutes for or support to regular
employees to maintain optimal service levels.
ADMINISTRATION/IT
8%City Council
1%City ATTORNEY
1%
COMMUNITY
DEVELOPMENT
8%
COMMUNITY
SERVICES GROUP
ADMINISTRATION
1%
FINANCE
3%
FIRE
13%
HUMAN RESOURCES
2%
PARKS &
RECREATION
6%
POLICE
20%
PUBLIC WORKS
20%
UTILITIES
17%
Chart 33: CITY WIDE POSITION OVERVIEW BY DEPARTMENT
(NOT INCLUDING SUPPLEMENTAL/CONTRACT POSITIONS)
Financial Plan Page 112 Page 524 of 954
Operating Budgets
Employee Summary – All Major Funds Combined
The tables below present the FTEs in the way that their costs are allocated. Some positions work across
different programs or departments. For example, one FTE may be costed 50% in Utilities and 50% in
Public Works. Sometimes positions are moved between programs; however, net changes in the number
of positions overall requires Council approval.
Table 34: Ongoing Approved FTEs 23-25 Financial Plan
DEPARTMENT & PROGRAM 2021-22 2022-23 2023-24 2024-25 Additions
1 ADMINISTRATION AND IT 33.22 34.72 35.72 35.72 2
2 City Administration1 5 6 7 7 1
3 Economic Development 1 1 1 1 0
4 Natural Resource Protection2 3 3 4 4 1
5 Tourism and Bid Promotion 1.75 1.75 1.75 1.75 0
6 Community Promotion 0.25 0.25 0.25 0.25 0
7 Diversity, Equity Inclusion 1 1 1 1 0
8 City Clerk 4 4.5 4.5 4.5 0
9 Network Services 8.55 8.55 8.55 8.55 0
10 Information Services 8.67 8.67 8.67 8.67 0
11 City Council 5 5 5 5 0
12 City Attorney 3 6 6 6 0
13 CSG ADMINISTRATION3 3.5 2.5 3.5 3.5 1
14 COMMUNITY DEVELOPMENT 40.5 40.5 40 40 -0.5
15 Community Dev Admin 5 5 5 5 0
16 Planning 10 10 9 9 -1
17 Engineering 5 5 6 6 1
18 Building and Safety4 15.5 15.5 15 15 -0.5
19 Housing Assistance2 4 4 5 5 1
20 FINANCE3 15 15 14 14 -1
21 Accounting 6.3 6 7 7 1
22 Budgets 1.2 1 1 1 0
23 Financial Administration 3 3 1 1 -2
24 Purchasing 2 2 2 2 0
25 Revenue Management 2.5 3 3 3 0
26 FIRE4 57.5 60 60.5 60.5 0.5
27 Emergency Response 46 46 46 46 0
28 Fire Administration 4 4 4 4 0
29 Fire Apparatus Services 2 2 2 2 0
1 Conversion of Ongoing Contract position to Ongoing Regular FTE.
2 Includes position(s) that were approved as additional FTEs on March 3, 2023 (R-11399- Exhibit A).
3 Infrastructure Financing Analyst moved from Finance Administration to CSG. One Finance Administration FTE was
moved to the Accounting division.
4 The Fire Marshall/Chief Building Official was split 50/50 between CDD and Fire. The position was moved completely
to Fire and the CDD Deputy Building Official was reclassified to a Deputy Director/Deputy Building Official.
Financial Plan Page 113 Page 525 of 954
Operating Budgets
Employee Summary – All Major Funds Combined
Table 34: Ongoing Approved FTEs 23-25 Financial Plan
DEPARTMENT & PROGRAM 2021-22 2022-23 2023-24 2024-25 Additions
30 Hazard Prevention 5.5 6 6.5 6.5 0.5
31 Emergency Management 0 1 1 1 0
32 Mobile Crisis Unit 0 1 1 1 0
33 HUMAN RESOURCES 10 10 10 10 0
34 Human Resources 10 10 10 10 0
35 PARKS & RECREATION 28 29 30 30 1
36 Recreation Admin 4 4 4 4 0
37 Recreation Facilities 1 1 1 1 0
38 Youth Services 8 8 8 8 0
39 Community Services52 above2 above 2 3 4 4 1
40 Ranger Service 8 8 8 8 0
41 Aquatics 1 1 1 1 0
42 Golf Course 4 4 4 4 0
43 POLICE6 91 91 95 95 4
44 Police Admin 6.5 6.5 7 7 0.5
45 Patrol 43 45 51 51 6
46 Investigations 16 14 12 12 -2
47 Police Support Services 20.5 20.5 21 21 0.5
48 Neighborhood Services 1 1 1 1 0
49 Traffic Safety 4 4 3 3 -1
50 PUBLIC WORKS 84.72 91.72 93.72 93.72 2
51 Facilities Maintenance 5 5 5 5 0
52 CIP Project Engineering 15 18 18 18 0
53 Stormwater & Flood Control (Streets
Maintenance) 2 2 2 2 0
54 Parks Maintenance 12 13 13 13 0
55 Parking Services 14.22 15.22 15.22 15.22 0
56 Public Works Administration5 7 8 9 9 1
57 Streets & Sidewalk Maintenance 11 12 12 12 0
58 Swim Center Maintenance 1 1 1 1 0
59 Traffic Signal Lights 2 2 2 2 0
60 Transit Services 3 3 3 3 0
61 Transportation Planning and
Engineering 6 6 6 6 0
62 Urban Forest Services7 2 2 3 3 1
5 Includes position(s) that were approved as additional FTEs on March 3, 2023 (R-11399- Exhibit A).
6 The decrease in positions in Investigations and Traffic Safety reflect the shift of officers to Patrol due to staffing
shortages. Investigations and Traffic cannot be fully staffed until the Department is able to fill vacant Patrol
positions.
7 Includes 1 FTE Urban Forester recommended with the 2023-25 Financial Plan.
Financial Plan Page 114 Page 526 of 954
Operating Budgets
Employee Summary – All Major Funds Combined
Table 34: Ongoing Approved FTEs 23-25 Financial Plan
DEPARTMENT & PROGRAM 2021-22 2022-23 2023-24 2024-25 Additions
63 Fleet Services 4.5 4.5 4.5 4.5 0
64 UTILITIES 76.06 80.06 80.06 80.06 0
65 Water Admin and Engineering 5.34 5.34 5.34 5.34 0
66 Water Source of Supply 1.2 1.2 1.2 1.2 0
67 Water Treatment 11.45 12.45 12.45 12.45 0
68 Water Distribution 10.9 10.9 10.9 10.9 0
69 Water Resources 3 4 4 4 0
70 Wastewater Admin and Engineering 6.44 6.54 6.54 6.54 0
71 Wastewater Collection 7.5 8.5 8.5 8.5 0
72 Environmental Programs 1.6 1.6 1.6 1.6 0
73 Water Resource Recovery 12.3 12.3 12.3 12.3 0
74 Utilities Revenue 2 2 2 2 0
75 Water Quality Lab 3.7 3.7 3.7 3.7 0
76 Solid Waste Recycling 1.1 2 2 2 0
77 Reservoir Operations 4.1 4.1 4.1 4.1 0
78 Stormwater & Flood Control 5.43 5.43 5.43 5.43 0
Total Full-Time Employee Count
2021-22 2022-23 2023-24 2024-25 Additions
TOTAL 446.5 464.5 474.5 474.5 10
Financial Plan Page 115 Page 527 of 954
Operating Budgets
Employee Summary – All Major Funds Combined
Total Contract & Supplemental Employee Count
The “FTE” count for supplemental staff is calculated based on budgeted hours (1 FTE = 2080 hours) which
are subject to change from year-to-year based on budget availability. With the 2021-23 Financial Plan,
there were many supplemental or contract positions added to help with Major City Goal efforts and core
services. Some of these positions were approved as ongoing regular FTEs during the two -year period;
however, many were not, explaining the negative variance in FY 2023-24.
Table 35: Supplemental & Contract Positions 2021-22 2022-23 2023-24 2024-25 Additions
ADMINISTRATION 3.9 3.9 1.4 1.4 -2.5
1 City Administration8 1 1 0 0 -1
2 City Clerk 0.1 0.1 0.1 0.1 0
3 Natural Resources Protection8 1.5 1.5 0 0 -1.5
4 Network Services 0.3 0.3 0.3 0.3 0
5 Diversity, Equity, Inclusion 1 1 1 1 0
6 CITY ATTORNEY’S OFFICE 5 1.6 1.6 1.6 0
7 CITY ATTORNEY’S OFFICE 5 1.6 1.6 1.6 0
8 COMMUNITY DEVELOPMENT 1.3 3.5 2 2 -1.5
9 Community Development Admin 0.5 0 0 0 0
10 Planning - 1 1 1 0
11 Engineering 0.8 0.75 0.6 0.6 -0.15
12 Building and Safety - 1.75 0.4 0.4 -1.35
13 FINANCE 0.5 0.5 0.5 0.5 0
14 Revenue Management 0 0 0 0 0
15 Accounting/ General Finance 0.5 0.5 0.5 0.5 0
16 FIRE 1.75 1.75 1.5 1.5 1
17 Fire Admin9 0.75 0.75 1.5 1.5 1
19 Mobile Crisis Unit 1 0 0 0 0
20 HUMAN RESOURCES 0.5 0.5 1 1 1
21 Human Resources Admin10 0.5 0.5 1 1 1
22 PARKS & RECREATION 45.3 34.4 35.4 35.4 1
23 Recreation Admin 1.7 1.0 1.0 1.0 0
24 Recreation Facilities 2.9 2.9 2.9 2.9 0
25 Youth Services 18.7 12.7 12.7 12.7 0
8 Conversion of Contract positions to Ongoing Regular FTEs (Natural Resources Protection position approved on
March 3, 2023).
9 Expansion of Fire Intern Program as approved on March 3, 2023 (R-11399- Exhibit A).
10 Addition of part-time Human Resources Specialist recommended with the 2023-25 Financial Plan.
Financial Plan Page 116 Page 528 of 954
Operating Budgets
Employee Summary – All Major Funds Combined
Table 35: Supplemental & Contract Positions 2021-22 2022-23 2023-24 2024-25 Additions
26 Community Services11 4.1 2.1 3.1 3.1 1
27 Ranger Service 4.8 1.9 1.9 1.9 0
28 Aquatics 11 11.0 11.0 11.0 0
29 Golf Course 2.1 2.8 2.8 2.8 0
30 POLICE 1.7 1.7 1.9 1.9 0.2
31 Neighborhood Services 1.7 1.7 1.9 1.9 0.2
32 PUBLIC WORKS 17.7 14.7 12 12 -3
33 Public Works Admin 0.6 0.1 0 0 -0.1
34 Parks Maintenance 1.5 2 1.5 1.5 -0.5
35 Swim Center Maintenance 1 0.5 0.5 0.5 0
36 Streets Maintenance 4 1 1 1 0
37 Fleet 1.5 1.5 0 0 -1.5
38 CIP Project Engineering 0.7 1.14 0.7 0.7 -0.4
39 Transportation Plan and Engineering 1 0.9 0.7 0.7 -0.2
40 Parking 6.1 7.6 7.6 7.6 0
41 Stormwater 1.3 0 0 0 0
42 UTILITIES12 1.6 1 3 3 2
43 Water Resources - 0 0 0
44 Water Resource Recovery Facility 1.5 1 0 0 -1
45 Water Quality Lab 0.1 0 0 0 0
46 Water Admin and Engineering 0 0 1.5 1.5 1.5
47 Wastewater Admin and Engineering 0 0 1.5 1.5 1.5
Total Supplemental Employee Count
2021-22 2022-23 2023-24 2024-25 Additions
TOTAL 79.3 62.6 60.3 60.3 -2.3
11 Addition of Contract Public Art Coordinator recommended with the 2023-25 Financial Plan.
12 Addition of contract and supplementary staff as recommended with the 2023-25 Financial Plan. See Utilities
Department section for detail.
Financial Plan Page 117 Page 529 of 954
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Administration and Information Technology
ADMINISTRATION AND INFORMATION
TECHNOLOGY
Mission Statement
Providing leadership for the City organization in our quest to deliver
exceptional service by facilitating citizen participation and government
transparency, implementing City Council goals and programs, and
fostering trust, respect and dignity for the City and the c ommunity
members we serve.
About the Department
The City Administration and Informational Technology Department is responsible for providing
information and recommendations to the City Council, implementing Council policies and programs as
well as managing the day-to-day operations of the City. It is the lead department charged with overseeing
implementation the Council’s Major City Goals.
The department is also responsible for coordinating the City's economic efforts including: the City's
Tourism program; the Office of Diversity, Equity and Inclusion; the Office of Sustainability that houses the
City’s Climate Action Program, Natural Resources Program, Creeks and Watersheds Program and
Community Partnerships; the Information Technology Division which provides network and information
services technology infrastructure, support, training, policy and strategic planning; and the City Clerk’s
Office. City Administration serves as the liaison to the Chamber of Commerce, Downtown SLO and Central
Coast Community Energy.
Financial Plan Page 119 Page 531 of 954
Administration and Information Technology
The Department at a glance
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Administration $1,417,084 $1,374,415 $1,518,237 $1,599,600
2 City Clerk $601,382 $704,704 $757,787 $777,137
3 City Council $245,853 $221,756 $244,185 $246,440
4 Community Promotion $415,604 $405,609 $411,735 $413,234
5 Cultural Activities $332,351 $357,963 $365,161 $365,161
6 Economic Dev $881,015 $906,219 $928,984 $937,514
7 Information Services $1,342,915 $1,277,224 $1,499,305 $1,553,946
8 Natural Resource Protection $1,017,359 $814,543 $1,024,108 $949,032
9 Network Services $3,239,708 $3,502,642 $3,504,523 $3,555,056
10 Office of Diversity, Equity,
Inclusion (DEI) $149,224 $888,313 $595,806 $606,539
11 Administration/IT Total $9,642,495 $10,453,389 $10,849,831 $11,003,659
Staffing
57%Contract
Services
25%
18%
Chart A-2: EXPENDITURES BY FUNCTION
Other Operating Costs
Table A-1:
Financial Plan Page 120 Page 532 of 954
Administration and Information Technology
Chart A-3: Department Organizational Chart1
1 Does not include supplemental positions.
Financial Plan Page 121 Page 533 of 954
Administration and Information Technology
Chart A-4: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1
10 Tall Tree
Planting
Implementation
(MCG 4.2g)
This project will support the 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
on 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.
One-
time $50,000 $50,000
2
Buy Local and Eat
Local Bonus (MCG
1.2a)
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.
One-
time $125,000 $125,000
3 Childcare Grants
(MCG 2.8d)
Continue the Childcare grants for starting new and
expanding current childcare businesses. One-
time $25,000 $25,000
4
Community
Activations (MCG
1.4e)
The funding that was available during and just after
the pandemic was key to the City’s 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.
One-
time $75,000 $75,000
5 EDD/Beacon Data
(MCG 1.2e)
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.
One-
time $11,000 $11,000
6
EDSP
Implementation
(MCG 1.1a)
The timing of the update of the Economic
Development Strategic plan is slightly behind the
budget process. This funding is being set aside to
have funding available for the identified initiatives.
One-
time $75,000 $75,000
7
La Loma Adobe
Rehabilitation
(Phase I) (MCG
1.4f)
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
One-
time $100,000 $0
Financial Plan Page 122 Page 534 of 954
Administration and Information Technology
SOBC Description Type 2023-24 2024-25
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.
8
Shop Local
Business
Promotion (MCG
1.2a)
Our shop local efforts have continued to pay
significant 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, Valentines 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.
One-
time $85,000 $85,000
9
Reclassification -
Administrative
Assistant III
The Administrative Assistant III requested to align
resources with the support needed to carryout 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.
Ongoing $0 $0
10
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
Ongoing $0 $0
Financial Plan Page 123 Page 535 of 954
Administration and Information Technology
SOBC Description Type 2023-24 2024-25
transition cost or over hire costs can be managed
within the existing budget.
11
Reclassification -
Economic
Development and
Tourism Manager
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.
Ongoing $0 $0
12 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. We are proposing
reclassification to meet the demands of modern
GIS.
Ongoing $0 $0
13
Reclassification -
Tourism and
Community
Promotions
Manager
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.
Ongoing $0 $0
TOTAL $546,000 $446,000
Financial Plan Page 124 Page 536 of 954
Administration and Information Technology
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals
tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals
are in addition to ongoing community program services (listed in program sub-sections).
Strategic
Goal(s)
Continue to lead the City’s communications program and provide timely, accurate and
concise communications that provide opportunities for the community to engage with
the City.
Continue to manage the City’s Information Technology Program to provide reliable
resources for improving organizational productivity, effectiveness and customer service
to the entire City organization and the community.
Work with regional partners to focus on the creation of head-of-household jobs,
promoting innovation and entrepreneurship, and supporting economic activities,
including tourism, to ensure the overall economic health and quality of life.
Implement the primary tasks set forth for the next two years as identified in the Climate
Action Plan for Community Recovery. Continued commitment and expanded focus on
Open Space protection and stewardship, as well as fire fuel reduction and creek and flood
control maintenance.
Further the 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.
Financial Plan Page 125 Page 537 of 954
Administration and Information Technology
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
2022-23
Projected
Actual
2023-24
Target
2024-25
Target
Provides City-wide
communications to the
community.
Strategic Goal: Citywide
Communications
Open City Hall Participant
Satisfaction Rating 94% 94% 93% 93%
# of Pageviews for City News
Pages 112,287 300,000 350,000 400,000
# of news email subscribers 2,643 3,400 4,500 6,000
Provides reliable IT resources
to the organization and
community.
Strategic Goal: Information
Technology
Maintain City Network Reliability
Uptime Status 99.95% 99.95% 99.9% 99.9%
Data backed-up in Gigabytes 185,448 195,000 195,000 195,000
Number of GIS layers maintained 915 910 920 920
Economic Stability
Strategic Goal: Economic
Recovery and Stability
Contacts with businesses
regarding starting, expanding,
and/or staying in the City
85 762 75 75
One-time funds used for direct aid
to local businesses and non-profits $400,000 $350,000 $175,000 $175,000
Supports our commitment to
sustainability and provides
open space resources to the
community.
Strategic Goal: Climate Action,
Open Space, and Sustainable
Transportation
# of Green Team3 Meetings 10 8 10 10
# of Open Space Conservation
Plans that will guide the long-term
protection and stewardship of
natural resource values while
guiding appropriate public use
0 1 1 1
Strengthens the City’s
commitment to advancing
Diversity, Equity and Inclusion
Strategic Goal: DEI
# of City-wide DEI Trainings
Offered 21 9 10 10
# of DEI Newsletters for Staff 0 1 6 6
Funds for High-Impact DEI Grants
Awarded 0 $300,000 $150,000 $150,000
2 As of April 3, 2023
3 Chartered by City Council, the Green Team is an annual commitment from a collaborative body of staff representing
various City departments to participate in the cross-departmental planning and implementation of emissions
reductions measures. The Green Team’s mission is to implement the City’s Climate Action Plan, Lead By Example
Plan, and Climate Adaptation and Safety Element of the General Plan and achieve the City’s carbon neutrality and
climate resilience goals. In FY23-24 the Green Team will focus on supporting staff managing Cal Poly Climate Corps
Fellows and on all-staff capacity building through presentations, events, and trainings.
Table A-5:
Financial Plan Page 126 Page 538 of 954
Operating Budget
General Fund City Administration
City Administration
Program Description
The City Administration and Information Technology department is responsible for providing information
and recommendations to the City Council, implementing Council policies and programs as well as
managing the day-to-day operations of the City. It is the lead department charged with overseeing the
implementation of the Council’s Major City Goals.
Core Services & Objectives
Lead the Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal.
Lead the Diversity, Equity, and Inclusion (DEI) Major City Goal.
Lead the Climate Action, Open Space and Sustainable Transportation Major City Goal.
Lead the citywide communication program.
Program Budget
Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,189,887 $1,193,995 $1,334,217 12% $1,415,580 6%
Contract Services $149,176 $125,900 $104,340 -17%$104,340 0%
Other Operating Costs $78,022 $54,520 $79,680 46% $79,680 0%
Administration Total $1,417,084 $1,374,415 $1,518,237 10% $1,599,600 5%
Major City Goal Contributions
The City Administration program will be responsible for supporting the Department’s programs in leading
the Major City Goals of Economic Resiliency, Cultural Vitality, and Fiscal Sustainability; Diversity, Equity,
and Inclusion; and Climate Action, Open Space, and Sustainability Transportation.
Opportunities and Challenges
During the 2021-23 Financial Plan, City Administration took the lead on three Major City Goals. This
included launching the new Diversity Equity and Inclusion goal. The City has made significant progress in
implementing the goal, but hiring for the position took longer than expected and then a staff vacancy
delayed some progress on implementing the workplan. Staff is now moving forward on all tasks after
recently hiring a new DEI manager. The Assistant to the City Manager position took over City legislative
efforts and has had an impact on matters of local and statewide importance.
Table A-6:Actual
Financial Plan Page 127 Page 539 of 954
Operating Budget
General Fund City Council
City Council
Program Description
The Council governs the City of San Luis Obispo by enacting and enforcing all laws and regulations
concerning municipal affairs, subject only to limitations and restrictions of the City Charter and the State
Constitution. Seventeen standing advisory bodies help the Council with this work.
Core Services & Objectives
Implementation of the selected Major City Goals:
Economic Resiliency, Cultural Vitality, and Fiscal Sustainability Major City Goal.
Diversity, Equity and Inclusion (DEI) Major City Goal.
Climate Action, Open Space and Sustainable Transportation Major City Goal.
Housing and Homelessness Major City Goal.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $211,690 $192,356 $209,785 9% $212,040 1%
Other Operating Costs $34,163 $29,400 $34,400 17% $34,400 0%
City Council Total $245,853 $221,756 $244,185 10% $246,440 1%
Table A-7:
Financial Plan Page 128 Page 540 of 954
Operating Budget
General Fund Cultural Activities
Cultural Activities
Program Description
The Cultural Activities Program administers partnerships with the Cal Poly Performing Arts Center, City -
County Public Library, San Luis Obispo Museum of Art, the History Center of San Luis Obispo, San Luis
Obispo Repertory Theatre, and other cultural organizations that provide community value.
Core Services & Objectives
Continue support to the City-County Library.
Continue financial support of the Performing Art Center (PAC).
Participate on the PAC Board and Facilities Committee.
Continue to provide support to Community Partners and explore new partnerships.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $332,351 $354,713 $365,161 3% $365,161 0%
Other Operating Costs $0 $3,250 $0 -100%$0
Cultural Activities Total $332,351 $357,963 $365,161 2% $365,161 0%
Opportunities and Challenges
The City continues to work with a number of local non-profits through its community partnerships
program that enhances the cultural vibrancy of the City. The City is actively moving forward with the
Cultural Arts District Parking Structure which will be paired with the SLO Repertory Theatre’s new home
and continue to build out the southern part of downtown as the Cultural Arts District. Challenges are
similar to many other challenges that the City faces in that there isn’t enough money to do everything.
Table A-8:
Financial Plan Page 129 Page 541 of 954
Operating Budget Economic Development
Economic Development
Program Description
The Economic Development Program emphasizes support for creation of head-of-household jobs,
collaborates with Cal Poly, Cuesta College, the business community, and other agencies to promote
innovation and entrepreneurship, and supports economic activities, including tourism, to ensure the
overall economic health and quality of life.
Core Services & Objectives
Lead the Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal.
Support the Climate Action, Open Space and Sustainable Transportation Major City Goal and the
Diversity Equity & Inclusion Major City Goals with a focus on economic development.
Lead the process to implement to the updated Economic Development Strategic Plan.
Restructure the program to meet the changing needs of the community and the evolution of
economic development in the City.
Continue to implement traditional and non-traditional economic development programs.
Work with our partners across the region to address common economic development challenges
and opportunities including business and talent attraction, reducing barriers to job creation,
focusing on sustainability and diversity equity and inclusion.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $219,226 $183,569 $215,334 17% $223,864 4%
Contract Services $649,680 $695,000 $686,000 -1%$686,000 0%
Other Operating Costs $12,109 $27,650 $27,650 0% $27,650 0%
Economic Dev Total $881,015 $906,219 $928,984 3% $937,514 1%
Major City Goal Contributions
The implementation of the Economic Resiliency, Cultural Vitality & Fiscal Sustainability (ERCV&FS)
Major City Goal will require a significant work effort. The actions and funding to continuing our support
of local marketing efforts and promotions like the Buy Local Bonus and Eat Local Bonus programs will
be important to continue to build resiliency in our community. Working with the Office of Sustainability
and Natural Resources and the Office of Diversity Equity and Inclusion will also be key to the success of
the ERCV&FS Major City goal. The Economic Development and Tourism Program will also be involved
in the other Major City Goal work programs to further their objectives.
Table A-9:
Financial Plan Page 130 Page 542 of 954
Operating Budget Economic Development
Opportunities and Challenges
There are many opportunities presented by the work on the Major City Goal and the updated Economic
Development Strategic plan, and the restructure of the program. Many of the opportunities are related
to further enhancing business communication and promotion. The groundwork being done in
cooperation with Community Development Department on Upper Monterey and other areas of the
City will create both short and longer-term opportunities for both housing and economic development.
Working with our community partners at the Chamber, REACH, Cal Poly and other stakeholders will
also create new opportunities for the City to cooperate regionally on creating jobs and expanding our
local business community.
One of the challenges will be determining ongoing funding for economic development programs only
budgeted in the current Financial Plan.
Other Key Points
The City’s Economic Development partnerships with other organizations, including the San Luis
Obispo Chamber of Commerce, REACH, Downtown SLO, Cal Poly, and others continue to
strengthen and will be invaluable in dealing with the recovery and resiliency as well as other
ongoing issues like the closure of the Diablo Canyon Nuclear Power Plant.
Since 2020 the team has expanded the Economic Development Program’s communication to
the business community and continuation of those efforts will be part of the efforts moving
forward.
Financial Plan Page 131 Page 543 of 954
Operating Budget Office of Sustainability
Office of Sustainability and Natural Resources
Program Description
The Office of Sustainability provides leadership through direct action, catalyzes positive action through
collaborative engagement and policy development, and creates measurable benefits for the City of San
Luis Obispo and our region through Natural Resources, Climate Action, Creeks and Watersheds, and
Community Partnerships.
Core Services & Objectives:
Implement the Climate Action Plan for Community Recovery and lead the Climate Action Major
City Goal.
Coordinate and lead inter-departmental efforts to achieve carbon neutral municipal operations
by 2030.
Assess community vulnerability to the impacts of climate change and continue planning and
implementation efforts that support resilience and adaptation through inter-departmental
collaboration.
Implement the Greenbelt Protection Program through land conservation planning, land
stewardship, and real property acquisitions, and support development review.
Participate and play a leadership role on the Stormwater Program Technical Team and Steering
Committee.
Provide inspections and pre-season treatments in the creeks to reduce the likelihood of flooding;
implement recovery efforts for threatened and endangered species through monitoring and
habitat restoration projects; support regulatory compliance and development review activities.
Engage in community partnerships with arts, cultural, historical, environmental, social, civic, and
business groups.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $679,725 $641,084 $700,649 9% $725,573 4%
Contract Services $266,073 $100,000 $250,000 150% $150,000 -40%
Other Operating
Costs $71,560 $73,459 $73,459 0% $73,459 0%
Program Total $1,017,359 $814,543 $1,024,108 26%4 $949,032 -7%
4 2023-24 exhibits a 26% increase accounting for the La Loma Adobe Rehabilitation Phase I one-time funding included
Contract Services.
Table A-10:
Financial Plan Page 132 Page 544 of 954
Operating Budget Office of Sustainability
Major City Goal Contributions
The Office of Sustainability and Natural Resources is responsible for implementing large portions of the
Climate Action, Open Space and Sustainable Transportation Major City Goal. Given the
interconnectedness of housing, economic development, and diversity, equity, and inclusion with climate
action goals, the Office of Sustainability will be involved in collaborating across all Major City Goals.
Opportunities and Challenges
As the state and federal governments continue to prioritize climate action, the City will monitor
opportunities for funding of priority climate actions. Ongoing implementation of the Climate Action Plan
will be a challenge due to the rapidly evolving regulatory environment and increasingly complicated
technical issues.
The City’s Greenbelt Protection program has historically been able to significantly leverage its open space
acquisition budget with grants from other agencies, creating the opportunity to pursue priority open
space purchases that otherwise would have been very expensive. While the City has usually been
successful in this regard, arranging external funding when needed oftentimes presents an additional
challenge.
Other Key Points
Implementing and updating the Climate Action Plan involves initiating multiple actions while
moving other actions from pilot phase to ongoing implementation.
The Climate Action Plan for Community Recovery explicitly commits to equity, economic recovery
and development, and housing, directly tying the work to all proposed Major City Goals.
The City’s continued commitment to the Greenbelt Protection Program necessarily means
continued investments in Ranger Service to ensure long-term care and stewardship of the City’s
cherished open space system.
Financial Plan Page 133 Page 545 of 954
Operating Budget
General Fund Community Promotion
Community Promotion
Program Description
The Community Promotions program works to improve the quality of life for all City residents and visitors.
The program implements projects to help promote the City as a regional trade, recreation, and tourist
center consistent with community goals. The program is administered by the Promotional Coordinating
Committee (PCC) and works collaboratively with the City’s Tourism Business Improvement District (TBID)
to ensure a unique San Luis Obispo experience for residents and visitors.
Core Services & Objectives
To promote the City as a regional trade, recreation, and tourist center consistent with community
goals.
Support of cultural, recreational, and social activities to enhance the community’s well-being.
Develop promotional programs and projects for the City of San Luis Obispo.
Initiate and support community activities that are meaningful to residents and visitors of the City of San
Luis Obispo.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $45,807 $38,609 $44,735 16% $46,234 3%
Contract Services $298,756 $328,000 $328,000 0% $328,000 0%
Other Operating Costs $71,041 $39,000 $39,000 0% $39,000 0%
Community Promotion Total $415,604 $405,609 $411,735 2% $413,234 0%
Major City Goal Contributions
The Community Promotions program will support the implementation of the Economic Resiliency,
Cultural Vitality & Fiscal Sustainability (ERCV&FS) Major City Goal through the work of the PCC in
overseeing and directing the support local campaigns and promotions, and through supporting the arts
and cultural organizations through grant programs and key partnerships.
Other Key Points
The PCC will continue to implement the cultural activities grant program, formerly known as
Cultural GIA, to support the cultural events and activities in the City.
Table A-11:
Financial Plan Page 134 Page 546 of 954
Operating Budget
General Fund City Clerk
Office of the City Clerk
Program Description
The City Clerk’s office handles a myriad of duties relating to the official business of the City Council, its
commissions, and committees. The City Clerk’s office is responsible for keeping minutes of City Council
meetings; compiling the agenda and collecting backup information for each council meeting; processing
council agreements; recording official documents; handling legal advertising; conducting municipal
elections; maintaining current files on all commissions and committees; maintaining the city seal; and
handling all other legal or official documents.
Core Services & Objectives
Ensure that records are preserved as provided by City Charter and State and Municipal Law.
Administer procedures for City elections for elective offices, initiatives, referendum, and recalls.
Conduct elections that conform to the State Elections Code and the City’s campaign regulation
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $521,189 $498,159 $543,742 9% $563,092 4%
Contract Services $51,927 $157,200 $164,700 5% $164,700 0%
Other Operating Costs $28,265 $49,345 $49,345 0% $49,345 0%
City Clerk Total $601,382 $704,704 $757,787 8% $777,137 3%
Opportunities and Challenges
The City Clerk’s office is continuing to implement Escribe as its Agenda Management System for the
Advisory Bodies. Currently, only five of the 17 Advisory Bodies are using Escribe. This will provide the
public with a one-stop location to find all agenda packets. In addition, the City Clerk’s office will be
implementing hybrid meetings for City Council. The City Clerk’s office will also be working on Council
Compensation and Election Regulations review in preparation for the 2024 Municipal Election.
Table A-12:
Financial Plan Page 135 Page 547 of 954
Operating Budget
General Fund Office of DEI
Office of Diversity, Equity & Inclusion (DEI)
Program Description
The brand-new Office of Diversity, Equity, & Inclusion (DEI) is responsible for supporting organizational
initiatives rooted in advancing San Luis Obispo’s efforts to be a more inclusive and equitable community.
The Office leads the implementation of the DEI Major City Goal (MCG) by working in collaboration with
all City Departments to prioritize strategies and engage in meaningful practices, while enhancing
partnership opportunities with community providers and planning groups to embed DEI concepts and
tools in community-driven spaces. The Office promotes and works toward organizational wellbeing and
justice, fosters healthy work environments, enhances hiring practices, strengthens public engagement,
and creates inclusion in budgeting, planning, and policymaking. The Office also provides support to the
Human Relations Commission (HRC) in reviewing, approving, and recommending grant applications.
Core Services & Objectives
Ensure the implementation of the DEI Major City Goal.
Administer procedures for, and provide support to the Human Relations Commission in reviewing,
approving, and recommending grants under their purview.
Lead the internal DEI Employee Committee in implementing trainings, strategies, and further DEI
concepts and applications in all departments.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $113,673 $326,813 $171,806 -47%$182,539 6%
Contract Services $33,447 $497,500 $360,000 -28%$360,000 0%
Other Operating Costs $2,104 $64,000 $64,000 0% $64,000 0%
Office of DEI Total $149,224 $888,313 $595,806 -33%5 $606,539 2%
Opportunities & Challenges
The Office of Diversity, Equity, & Inclusion is still relatively new and has several key projects and tasks to
implement city-wide while ensuring a meaningful application is consistent within the City’s initiatives and
strategies for long-term sustainable and transformational change. The Office offers a new perspective in
city governance and operations by embedding equity and inclusion practices that fosters and enhances
community engagement, transparency, and collaboration in policymaking and decision-making processes.
5 2023-24 shows a 33% reduction in total budget. The decrease accounts for one-time programs and resources (e.g., DEI Business
grants, strategic planning, multicultural center feasibility study, consultant support, interns, etc.) associated with the startup of
the program. It should be noted several of these programs are in progress and will continue in the 2023 -25 Financial Plan. In
addition, the 2022-23 budget is higher due to the delay in the 2021-22 DEI High Impact Grant cycle in which $150,000 carried into
2022-23.
Table A-13
Financial Plan Page 136 Page 548 of 954
Operating Budget
General Fund IT – Network Services
IT Network Services
Program Description
The IT Network Services Program is responsible for ensuring that the City's information technology
resources are effectively managed and used as key tools in improving organizational productivity,
effectiveness, customer service and public access to City information. IT support services range from end
user support to infrastructure design, installation, and maintenance. The Network Services program also
provides training to City staff on the use of implemented technologies and applications. Additional Core
Services include support of the City’s Public Safety departments and their technology needs. The Network
Services program works with the Utilities departments to install, maintain, and secure their critical SCADA
(Supervisory Control and Data Acquisition) systems.
Core Services
Public Safety infrastructure support
Core Network and Internet infrastructure support
City cyber security services and threat monitoring
Citywide Communication Support – radio system, wireless system, camera system, access control
systems, telephones (VoIP & analog), cell phones
Support City telemetry and SCADA systems
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,295,135 $1,321,609 $1,439,621 9% $1,485,405 3%
Contract Services $440,645 $641,019 $500,079 -22%$500,740 0%
Other Operating Costs $1,503,929 $1,540,014 $1,564,823 2% $1,568,910 0%
Network Services
Total $3,239,708 $3,502,642 $3,504,523 0% $3,555,056 1%
Major City Goal Contributions
Network Services supports all Major City Goals by providing services to ensure the reliability, continuity,
and sustainability of network, server, storage, and desktop systems.
Opportunities and Challenges
Network Services is involved in building the support structure around the City’s investments in
applications and infrastructure to ensure these are used to provide a high level of service to the public.
Network Services will continue to strengthen the City’s Public Safety communications infrastructure
and the City’s underlying IT infrastructure platform. The Information Technology Division will continue
engaging in opportunities to advance the Broadband Strategic Plan and recommendations for
implementation.
Table A-14:
Financial Plan Page 137 Page 549 of 954
Operating Budget Information Services
General Fund
IT Information Services
Program Description
The IT Information Services Program operates and maintains the City's geographic information system
(GIS), enterprise databases, and enterprise applications. The Program provides accurate and
comprehensive information services for managing resources, making informed decisions, and expediting
work processes. The City’s GIS and enterprise applications have expanded over the years due to the
valuable insights the data provides, and the IT Information Services Program continues to position itself
to best serve the City’s needs now and into the future.
Core Services
Enterprise Application Support
Analysis and Training
Database Management and Maintenance
Motion Support
GIS mapping and enterprise database support
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,277,850 $1,194,324 $1,413,710 18%6 $1,468,351 4%
Contract Services $6,864 $11,400 $11,400 0% $11,400 0%
Other Operating
Costs $58,202 $71,500 $74,195 4% $74,195 0%
Program Total $1,342,915 $1,277,224 $1,499,305 17% $1,553,946 4%
Major City Goal Contributions
Information Services provides mapping, analyzing, and reporting support for elements of Housing and
Homelessness, Climate Action, and Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City
Goals.
Opportunities and Challenges
The use of GIS technology continues to expand. This comes with the challenge of maintaining adequate
staffing levels as the organization continues to depend on and invest in GIS-centric applications and systems
and automating work processes. The Information Services Motion Core Team continues to develop the
Oracle ERP System and resolve compliance-based issues identified post-implementation. Keeping up with
changing technology and maintaining the best management practices remains challenging with current
resources.
6 Variance due to approved wage increases.
Table A-15:
Financial Plan Page 138 Page 550 of 954
Operating Budget City Attorney
CITY ATTORNEY
Mission Statement
Advancing excellence and ethics in the delivery of legal advice
and services to the City Council, Advisory Bodies and City Staff to
support legally informed decision-making, legal compliance,
equity, accountability, and transparency in public service.
About the Department
The legal services program is a support function that provides legal advice and representation to the City
Council, all City departments, and City advisory bodies to accomplish Major City Goals, other important
objectives, and core operational functions in accordance with the law.
The responsibilities include: providing Council, Planning Commission, Advisory Bodies, and cross
departmental staff with legal review and advice to ensure general compliance with applicable laws and to
minimize liability exposure; defending or managing the defense of claims and litigation against the City
and initiating civil actions on behalf of the City; enforcing and prosecuting violations of the Municipal
Code, including both criminal violations and civil/administrative enforcement; providing legal analysis and
support in the City's review of and response to proposed county, state, and federal legislation; advising
City staff on compliance with the California Public Records Act, and reviewing and producing documents
subject to disclosure; and administering and providing staff support for administrative citation appeals to
hearing officers and the City’s Administrative Review Board or Construction Board of Appeals.
Financial Plan Page 139 Page 551 of 954
Operating Budget City Attorney
The Department at a Glance
Staffing
94%
Contract Services
3%
Other Operating Costs
3%
Chart A-17: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
City Attorney $1,374,705 $1,305,660 $1,425,044 $1,497,103
City Attorney Total $1,374,705 $1,305,660 $1,425,044 $1,497,103
Table A-16
Financial Plan Page 140 Page 552 of 954
City Attorney Operating Budget
Chart A-19: Department Organizational Chart1
1 Does not include supplemental or contract positions.
City Attorney's
Department
(6 FTE)
City Attorney
(1 FTE)
Assistant City Attorney
(1 FTE)
Deputy City Attorney
(1 FTE)
Legal Analyst
(1 FTE)
Paralegal, Legal Assistant
(2 FTE)
Financial Plan Page 141 Page 553 of 954
Operating Budget City Attorney
2023-25 Department Goals
As a support department, the City Attorney’s Office primary goal is to ensure that the City Council, its
advisory bodies, and all City departments and staff are fully informed of available legal options and
compliant with applicable laws in the implementation of Major City Goals and delivery of core services.
Strategic Goal(s)
Provide timely and responsive legal advice and support to City Council, Planning
Commission, Advisory Bodies, and all City departments to ensure legally
compliant implementation of Major City Goal work programs and delivery of
core services.
Provide proactive and regular training and support to the City Council, Advisory
Bodies, and all City departments regarding compliance with public agency
transparency and ethics laws, including the Brown Act, Public Records Act,
Political Reform Act, and Government Code Section 1090, as well as Land Use,
Planning, and Housing laws, regulation of public spaces, public contracting and
bidding laws, public employment, and labor laws, first amendment and civil
rights laws, and elections laws.
Provide timely and effective legal representation and case management of civil
claims and litigation cases, as well as effective criminal and civil enforcement
and prosecution of the City’s Municipal Code to minimize liability exposure and
enhance community welfare.
Continue with training and assignment of new staff to achieve departmental
sustainability and stability, and to enhance responsiveness, efficiency, and
effectiveness in the delivery of legal services.
Financial Plan Page 142 Page 554 of 954
Operating Budget
General Fund City Attorney
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
2022-23
Actual2
2023-24
Target
2024-25
Target
Timely and Responsive
legal advice and
support
Strategic Goal:
Department Objectives
Administrative Citation Appeals
Received by the City 122 76 120 120
Appeals closed without need of a
hearing3 39 16 25 25
City assisted corrections to
defective appeals to allow access to
hearing
18 5 15 15
City facilitated hearings on the
record without need for personal
appearance by Appellant
29 23 30 30
# of hearing days scheduled4 14 12 12 12
Legal Training &
Compliance
Strategic Goal:
Department Objectives
# of Council, Staff, and Advisory
Body legal trainings, legal updates,
and compliance advisory sessions
65 116 12 157
Municipal Litigation &
Prosecution
Management
Strategic Goal:
Department Objectives
Percentage of Claims Resulting in
Litigation 14%8 4.7% <5% <5%
Liability Claims Against the City
Reviewed/Managed 67 64 70 70
2 As of 3/31/2023
3 Closed in some way that did not include a decision being issued (e.g., withdrawn by appellant, untimely filed, voided
by the issuing department)
4 If more than one hearing officer convened hearings on the same day, those are counted separately.
5 The ongoing time and attention demanded by the organizational assessment and the delay in bringing that effort
to a close (so its staffing and other recommendations could be implemented) reduced the amount of time available
for planning and presenting these legal training sessions.
6 Including those planned through June 2023
7 As newer staff become more confident in their positions, capacity to conduct trainings should increase.
8 This high percentage is from nine cases. Eight of those are: a person injured during after -hours, reckless use of a
City park; an unfair labor practices charge; a writ petition to force the City to permit a disqualified cannabis bus iness
applicant; damage done to a gas main during a contractor’s work for the City; a writ to force the issuance of a permit
for a yard structure built in violation of the building code; injuries due to a trip and fall on private property near a
City sidewalk; a bicyclist fatality; and injuries due to a limb falling from a privately owned tree. The ninth lawsuit was
known to not involve the City but was filed to include it anyway due to the plaintiff’s failure to accurately and timely
assess potential liability. The City was eventually dismissed from the case following production of discovery
responses that supported its clear non-involvement.
Table A-20:
Financial Plan Page 143 Page 555 of 954
Operating Budget
General Fund City Attorney
City Attorney
Program Description
The City Attorney department has only one program that completes all the legal and administrative
support functions under its purview.
Core Services & Objectives
Enhance and maintain a high level of legal support to City government.
Provide prompt, thorough legal advice in response to inquiries, with emphasis on legal options.
Minimize liability exposure of the City through the practice of preventative law.
Apprise City Council on anticipated and current litigation, legislation impacting the City, and other
significant legal matters.
Strengthen Municipal Code enforcement practices.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,146,056 $1,217,800 $1,329,184 9% $1,409,243 6%
Contract Services $87,695 $63,395 $48,500 -23%9 $47,905 -1%
Other Operating Costs $140,954 $24,465 $47,360 94%10 $39,955 -16%
City Attorney Total $1,374,705 $1,305,660 $1,425,044 9% $1,497,103 5%
Major City Goal Contributions
Various department attorneys and staff have been assigned to support the work programs of each Major
City Goal. Staff contributions are difficult to predict in advance, but the City Attorney currently anticipates
that the largest contributions from the department over the next two years will be advising on a legally
compliant citywide fee study, implementation of emerging housing laws, legal advice and support related
to approval of alternative Capital Improvement Project delivery, study sessions for both creek
maintenance/flood preparedness funding options and housing needs, analysis of City options to support
renter protections, election system evaluation and implementation to advance DEI Objectives,
9 About $12,000 was moved from Contract Services to Other Operating Costs to cover the costs of legal research
tools and expanded access to electronic reference materials.
10 The high percentage here is due to the change described in the previous footnote and also a one-time, $8,000
Council approved increase to Education & Training to fund the City Attorney’s enrollment in a week-long mediation
training (as referenced in the recent contract renewal). Because this is a one-time expenditure, the budget reduced
in FY 2024-25.
Table A-21:
Financial Plan Page 144 Page 556 of 954
Operating Budget
General Fund City Attorney
homelessness response options, as well as defense of litigation in a manner that preserves and advances
local control and legal alternatives supportive of Major City Goals.
Opportunities and Challenges
With increased department staffing approved by Council during the last financial plan, the department
will have the opportunity to welcome new staff and allocate workload to ensure timely and effective
delivery of legal support services. Starting in July 2023 the department should have all approved positions
filled and working full-time hours, as supervisors continue to onboard and train newer staff members in
their roles and assignments. Increased staffing is an exciting opportunity to enhance departmental
effectiveness and ensure the long-term structural functionality of the office, but the training process is
time and staff resource intensive and will result in short-term constraints on capacity and potential delays
in responsiveness. Staff will be implementing and enhancing utilization of internal workload management
and tracking tools and encouraging broader use of the Department’s online legal support request/intake
process to effectively allocate workload, balance and track competing priorities, and ensure important
deadlines are met.
Financial Plan Page 145 Page 557 of 954
Operating Budget Finance
FINANCE
Mission Statement
Safeguarding the City’s resources and fiscal health by
implementing financial policies, procedures, and reporting
systems to serve the citizens and enable operating departments
to achieve their objectives.
About the Department
The Finance Department is responsible for managing the City’s financial operations in accordance with
applicable law, policies, standards, and procedures. This includes the preparation of the City’s budget and
financial reports, administration of the City’s treasury and revenue operations, management of the City’s
fiscal resources, and administration of the accounting functions including indirect City-wide costs not
easily charged to operating programs or projects. The Department also prepares the City’s audit and its
Comprehensive Annual Financial Report as well as the Popular Annual Financial Report. Lastly, the
Department assists the City Manager’s office in monitoring and reporting on both annual revenues and
expenditures.
Financial Plan Page 146 Page 558 of 954
Operating Budget Finance
The Department at a glance
Staffing
79%
Contract
Services
10%
Other Operating Costs
11%
Chart A-23: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Finance Administration $618,102 $557,524 $330,994 $326,599
Budgets $220,038 $173,883 $222,653 $253,217
Revenue Management $438,580 $467,947 $550,776 $493,195
Purchasing $202,712 $218,874 $246,560 $256,936
Accounting $907,321 $898,785 $1,097,098 $1,142,608
Total Finance $2,386,753 $2,317,013 $2,448,081 $2,472,555
Non-Departmental (Citywide) $664,248 $2,912,928 $1,432,583 $2,746,139
Total Non-Departmental $664,248 $2,912,928 $1,432,583 $2,746,139
Table A-22:
Financial Plan Page 147 Page 559 of 954
Operating Budget Finance
A-24: Department Organizational Chart1
1 Does not include Supplemental or Contract Positions.
Finance
(14.00 FTE)
Finance
Financial
Administration
(1.00 FTE)
Accounting
(7.00 FTE)
Budgets
(1.00 FTE)
Purchasing
(2.00 FTE)
Revenue
Management
(3.00 FTE)
Support
Services/Non-
Departmental
Financial Plan Page 148 Page 560 of 954
Operating Budget Finance
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to support the advancement of the City’s
overall objectives tied to Major City Goals, Department Strategic Plans, and other priorities as they may
arise. These goals are in addition to ongoing community program services assigned to an internal services
department (listed in program sub-sections).
Strategic Goal(s)
Continue to monitor the City’s unfunded liabilities for the pension and retiree health
plan and make recommendations as needed to achieve the City Council directed goal
to reduce the pension unfunded liabilities and maintain the retiree health plan .
In coordination with Information Technology and Human Resources, continue t o
enhance and utilize the Oracle ERP and Human Resources Management System in
support of accurate and timely accounting processes and reporting.
In coordination with the Office of Sustainability and administration, continue to
enhance the City’s purchasing policy to support Climate Action, DEI, and the Local
Economy.
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
2022-23
Projected
2023-24
Target
2024-25
Target
Enables & enhances
transparency, accountability
& integrity.
Strategic Goal: Fiscal Policies
# of calendar days following
year-end until ACFR is issued 180 170 170 170
# of audits/reviews
conducted/ # of additional
agreed upon procedure audits
performed
2/2 2/2 2/2 2/2
Protects & prudently
manages its financial
resources.
Strategic Goal: Fiscal Policies
# of funds within fund balance
requirements/ total funds with
fund balance requirements
8/8 8/8 8/8 8/8
Net annual direct debt per
capita (General Fund2) $43 $43 $39 $39
Twelve-month total rate of
return/City portfolio -3.66%-3.69%3% 3%
2 The California Government Code provides for a legal debt limit of 3.75% of assessed valuation. The City’s debt
management policy, however, sets a more restrictive debt limit of 2% of valuation. This equates to a legal debt limit
per capita of $8,500 and a City policy per capita limit of $4,500. The City remains well below its per capital limit.
Economic Stability Housing Climate Action DEI Other Department Objectives
Table A-24:
Financial Plan Page 149 Page 561 of 954
Finance Administration
Operating Budget
General Fund
Finance Administration
Program Description
This program leads, organizes, and monitors the divisions within the Finance Department. It is responsible
for managing the City’s treasury function and financial operations in accordance with established
accounting standards, policies and strategic plans.
Core Services & Objectives
Be a proactive participant in citywide strategic planning and decision-making, adding value as a
provider of financial strategy advice, analysis, auditing, and investment and debt management.
Continue developing and implementing operational efficiencies and best practices.
Provide fiscal policy advice and guidance.
Provide overall administration and leadership of department.
Manage cash flow and invest cash in accordance with established policies and procedures.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $570,530 $524,884 $278,354 -47%$293,959 6%
Contract Services $32,446 $10,000 $30,000 200% $10,000 -67%
Other Operating Costs $15,126 $22,640 $22,640 0% $22,640 0%
Finance Admin Total $618,102 $557,524 $330,994 -41%$324,559 -1%
Major City Goal Contributions
The Finance Department supports all Major City Goals by providing timely and regular reporting to the
City Council and the community on the status and progress of the strategic goals. The department has an
integral role in the Economic Stability goal and its strategic approach to pension obligations and funding.
Opportunities and Challenges
As of a result of the 2023 storms that resulted in two separate emergency declarations at the Federal,
State and local level, Finance staff is playing a key roll in making sure that costs are accurately tracked in
3 A vacant Finance Admin Assistant position was reclassified to a Payroll Speci alist and the FTE was moved to the
Accounting division. Additionally, the Infrastructure Financing Analyst was moved from Finance Administration to
CSG Administration.
4 In between Financial Planning years, budget is moved from the Budgets division to the Finance Administration
budget to help fund various financial analyses.
Table A-25:
3
4
Financial Plan Page 150 Page 562 of 954
Operating Budget
General Fund Finance Administration
order to maximize the possibility of reimbursement through FEMA and CalOES via the California Disaster
Assistance Act (CDAA) program. Finance Administration is also responsible for ongoing reporting to the
US Treasury related to the use of State and Local Fiscal Recovery Funds provided to address the fiscal
impacts of the COVID-19 pandemic, and is at the forefront of investment and debt issuance strategies
which will both be strategically pursued to best serve the long-term fiscal health of the City in a time of
economic uncertainty.
Financial Plan Page 151 Page 563 of 954
Budgets
Operating Budget
General Fund
Budget
Program Description
The Budget Program is responsible for citywide coordination of the development and preparation of the
City’s two-year Financial Plan budget, the Supplemental Budget and corresponding quarterly and mid-
year reports to the City Council. The Financial Plan allocates the City’s resources to achieve the highest
priority objectives established by Council. The program is responsible for implementation of budgetary
controls and financial reporting and compliance with adopted Financial Plans and budget appropriations.
Core Services & Objectives:
Lead development and preparation of the two-year Financial Plan in accordance with Council
adopted highest priorities and fiscal policies.
Evaluate, monitor, and produce reports documenting the City’s financial progress for internal
customers and for presentation to the City Council every three months.
Manage and update the five-year budget forecast for all major funds and prepare periodic
revenue and expenditure estimate updates.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $197,091 $142,383 $161,153 13% $171,717 7%
Contract Services $21,828 $22,000 $52,000 136% $72,000 38%
Other Operating Costs $1,119 $9,500 $9,500 0% $9,500 0%
Budget Total $220,038 $173,883 $222,653 28% $253,217 14%
Opportunities and Challenges
Maintaining a balanced forecast during a time with a looming recession, recovery from a natural disaster,
and sky-rocketing inflation is no easy feat. The Budget division will continue to work closely with the
departments in order to ensure fiscal adherence to the City’s policies such as the Fiscal Health Contingency
Plan6. Quarterly reports to Council will help the City remain nimble and respond to economic conditions
in a timely manner, should the fiscal conditions change.
5 Increase due to Budgeting Software budget moved from the Capital to Operating budget. There is also an increase
in FY 2024-25 to account for costs associated with community outreach and planning for the 2025-27 Financial Plan.
This line item alternates between Finance Administration and Budgets each year.
6 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.
Table A-26:
5
Financial Plan Page 152 Page 564 of 954
Revenue Management
Operating Budget
General Fund
Revenue Management
Program Description
The Revenue Management Program administers the City’s treasury and revenue operations in accordance
with established fiscal policies and industry best practices. It provides day-to-day cashier service to City
customers and is proactive in developing automated features and conveniences for an efficient revenue
collection.
Core Services & Objectives
Ensure Fiscal Sustainability and Responsibility
Administer the Finance public counter and daily cashiering duties such as deposits and invoices.
Promote and enhance electronic payment options for customers.
Administer the City’s Business tax and license program.
Monitor receipts of local revenues and initiate effective collection strategies to ensure that
revenues and taxes are paid by those who are obligated to pay them.
Manage collection programs for Transient Occupancy Tax, Utility User Tax, , and Cannabis Tax.
Coordinates the annual update and periodic changes to the Master Fee Schedule, ensuring that
customers are being charged the Council-approved rate.
Provides revenue analytics and forecast updates on a monthly basis.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $307,149 $288,007 $300,076 4% $314,045 5%
Contract Services $122,115 $163,740 $234,500 43% $162,950 -31%
Other Operating Costs $9,317 $16,200 $16,200 0% $16,200 0%
Revenue Mgmt Total $438,580 $467,947 $550,776 18% $493,195 -10%
Opportunities and Challenges
The division continues its transactional data analysis which will drive future decisions on cash flow levels
and liquidity for use in investments and acquisitions. Staff is also working closely with the Administration
department to incorporate DEI-related Major City Goal initiatives in the business license renewals.
7 Includes one-time budget for a comprehensive Fee Study in FY 2023-24.
Table A-27:
7
Financial Plan Page 153 Page 565 of 954
Purchasing
Operating Budget
General Fund
Purchasing
Program Description
The Purchasing Program is responsible for supporting and facilitating the timely and efficient procurement
of supplies, materials, equipment, and services required by City Departments while ensuring compliance
with City Policies, applicable government regulations, and best practices in public sector procurement to
obtain the lowest cost while maintaining appropriate internal controls. The program aids all departments
in their purchasing activities.
Core Services and Objectives:
Responsible for City purchasing and contracting policies to effectuate more efficient and
standardized purchasing procedures for citywide implementation.
Oversee City purchasing and ensure compliance with all applicable laws, regulations, and policies.
Develop and maintain standards and procedures for purchasing activities for all departments.
Maintain best practices in purchasing to ensure responsible use of City funds.
Administer City contracts, assist in contract negotiations, and performance compliance.
Provide quality service, analytical support and information regarding procurement and
contracting to all departments.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $184,400 $198,164 $226,860 14% $237,036 4%
Contract Services $14,681 $16,210 $15,200 -6%$15,400 1%
Other Operating Costs $3,630 $4,500 $4,500 0% $4,500 0%
Purchasing Total $202,712 $218,874 $246,560 13% $256,936 4%
Opportunities and Challenges
Purchasing is leading and coordinating the City’s FEMA COVID reimbursement and has successfully
obtained over $300,000 in reimbursement payments for the City’s COVID expenses in December 2022,
and April 2023. Purchasing is still negotiating with FEMA for reimbursement of a potential of $626,000 in
additional Covid emergency expenses and is expects final determination from FEMA for these expenses
in the course of the 2023-25 Financial Plan
Purchasing is also coordinating the January 2023 storm FEMA recovery efforts and will be working with
Ernst and Young on the City’s FEMA storm reimbursements over the course of the 2023-25 Financial Plan.
Purchasing is also working to complement the City’s Major goals around Climate Action by drafting an
update to the City’s Environmentally Preferable Purchasing Ordinance to incorporate updated best-in-
class third-party label certification standards to its purchased products and services that mirror the City’s
investment policy around ESG (Environmental, Social, Governance criteria).
Table A-28:
Financial Plan Page 154 Page 566 of 954
Accounting Operating Budget
General Fund
Accounting
Program Description
The Accounting Program prepares citywide financial statements, ensures integrity of financial data,
processes accounts payable and payroll, and prepares financial reports in compliance with Federal and
State regulations. The Program is responsible for developing and monitoring the reporting systems that
help assure the City’s long-term fiscal health, providing quality customer service, and protecting the City’s
financial assets from unauthorized use.
Core Services and Objectives:
Provide accurate and timely financial reports to internal and external stakeholders.
Process timely cash disbursements to City business partners.
Maintain City employee payroll records and meet payroll disbursement and reporting deadlines.
Provide general oversight over the City’s investments, banking, and debt services.
Manage banking services and debt service administration.
Provides General Accounting services to the organization and monitors compliance with
accounting standards, policies and best practices.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $742,741 $728,665 $918,478 26% $963,988 5%
Contract Services $163,825 $160,020 $168,520 5% $168,520 0%
Other Operating Costs $755 $10,100 $10,100 0% $10,100 0%
Accounting Total $907,321 $898,785 $1,097,098 22% $1,142,608 4%
Opportunities and Challenges
Completing the implementation of all aspects of the Oracle Motion system, such as payroll configuration
changes and accounts payable improvements, will provide challenges to workload and staffing resources
that will need to be involved in the deployment of the system while simultaneously providing ongoing
operations. Appropriate resources have been approved in this budget as these investments will result in
more efficient, effective, and accurate day-to-day operations in the long-term.
8 FY 2023-24 includes budget for a Payroll Specialist FTE that was moved from the Finance Administration division.
Table A-29:
8
Financial Plan Page 155 Page 567 of 954
Operating Budget
General Fund
Support Services &
Non-Departmental
Support Services & Non-Departmental Expenses
Program Description
The Support Services and Non-Departmental Program accounts for indirect Citywide costs not clearly
linked to departmental operating programs or projects. The Finance Department is responsible for
disbursing the allocated budget according to established policies.
Core Services and Objectives:
Effective budgeting, disbursement, and accounting for Citywide costs in accordance with adopted
City policies
Budget is allocated for:
Council approved negotiation parameters for bargaining units.
Citywide copier maintenance and supplies.
Citywide postage and mailing supplies.
Citywide membership and conference fees for the League of California Cities.
Ventures and Contingency Funding for use at the City Manager’s discretion to support innovative
proposals.
General Fund leave payouts and staffing related contingency funds.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $48,037 $2,513,228 $1,000,883 -60%$2,314,439 131%
Contract Services $616,211 $399,700 $431,700 8% $431,700 0%
Program Total $664,248 $2,912,928 $1,432,583 -51%$2,746,139 92%
9 FY 2022-23 budget includes the approved equity adjustments for SLOCEA, Confidential, and Management
employees for the entire City. In FY 2023-24, this budget was included in the department base budgets, explaining
the 60% decrease. FY 2024-25 includes a contingency for future negotiations with various bargaining units.
Table A-30:
9
Financial Plan Page 156 Page 568 of 954
Operating Budget Human Resources
HUMAN RESOURCES
Mission Statement
Serving the people who serve our community.
About the Department
The Human Resources Department provides support to all City departments including coordination of
recruitment and selection processes; onboarding; classification and compensation; human capital
management support; labor relations and negotiations; performance management; employee training
and development; and employee benefit administration. In addition, the Department oversees Risk
Management and the Insurance Fund which includes liability and property claims administration; workers'
compensation administration; employee safety and compliance; and insurance review. The Department’s
Wellness program promotes a healthy and safe organization through the Employee Assistance Program,
a newly established Preventative Mental Health Services Program for public safety employees, and various
education and wellness activities.
Financial Plan Page 157 Page 569 of 954
Operating Budget Human Resources
The Department at a glance
Staffing
75%
Contract
Services
22%
3%
Chart A-32: EXPENDITURES BY FUNCTION
Other Operating Costs
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Human Resources Admin $1,924,607 $1,667,537 $2,087,827 $2,190,716
Wellness $10,134 $17,411 $53,358 $55,819
Human Resources Total $1,934,741 $1,684,948 $2,141,185 $2,246,535
Table A-31:
Financial Plan Page 158 Page 570 of 954
Operating Budget Human Resources
Chart A-33: Department Organizational Chart1
1 Does not include supplemental or contract positions.
Human
Resources
Human
Resources
(10.00 FTE)
Risk
Management
Wellness
Financial Plan Page 159 Page 571 of 954
Operating Budget Human Resources
Table A-34: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1
Contract Half-Time
Human Resources
Specialist -
Onboarding
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.
One-time $46,895 $48,583
2
SLO Onboarding
Assistance
Resources (SOAR)
Program
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.
One-time $6,000 $6,000
3
Preventative
Mental Health
Services Program
for Public Safety
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. To
date, it is our understanding that 100% of the
individuals that have received support through the
preventative program have not filed a workers’
compensation claim; therefore, proving its success
and importance to the health and well -being of our
employees.
Ongoing $35,000 $37,000
TOTAL $87,895 $91,583
Financial Plan Page 160 Page 572 of 954
Operating Budget Human Resources
2023-25 Department Goals
The Human Resources Department has developed a strategic plan that aligns with the 2023-25 Financial
Plan and includes objectives of integrated human resources services, employee development and growth,
and an engaged and aware culture. The Human Resources Department aims to achieve the objectives
listed above through the following strategic goals.
Strategic Goals
Present high-quality integrated human resources solutions, aligned with fiscal
sustainability and compliance, to effectively deliver city services.
Provide tools and opportunities that empower employees to reach their full
potential.
Promote a high-performing and self-sufficient employee organization that is
connected to the community through shared organizational values and goals.
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
FY2022-23
Actual*
2023-24
Target
2024-25
Target
Integrated HR
Services
(Strategic Goal)
Average days between injury and Workers’
Compensation claim filed. 5 4 3 3
Achieved lower severity of Workers’
Compensation claims than the risk pool Yes Yes Yes Yes
Annual liability claims payment under the
Self-Insured Retention amount. No No Yes Yes
Employee
Development &
Growth
(Strategic Goal)
Percentage of On-Time Employee
Performance Evaluations 86% 92% 95% 95%
Percentage of Internal Promotions 49% 35% 40% 40%
Training Sessions Coordinated 56 15 20 20
Engaged and Aware
Culture
(Strategic Goal)
Number of Policies Communicated 44 80 75 75
Informational Sessions Coordinated 357 266 200 200
*As of March 31, 2023
Economic Stability Housing Climate Action DEI Other Department Objectives
Table A-35:
Financial Plan Page 161 Page 573 of 954
Operating Budget Human Resources
General Fund Wellness
Human Resources
Program Description
The Human Resources Administration Program provides support to all City departments in all aspects of
attracting and retaining highly qualified employees. The Program manages a variety of functions including
coordination of recruitment and selection, classification and compensation, human capital management
support, performance management, employee training and development, labor relations and
negotiations, employee benefits, and statutory and regulatory compliance.
Core Services & Objectives
Employee recruitment, selection, orientation, development, and training administration.
Employee classification, compensation, and benefits administration.
Human capital management support.
Employee performance management.
Employee/employer labor relations and negotiations.
Legal compliance.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,400,484 $1,309,854 $1,451,978 11% $1,546,413 7%
Contract Services $466,908 $308,883 $569,349 25%2 $577,803 0%
Other Operating Costs $57,215 $48,800 $66,500 36%3 $66,500 0%
Total $1,924,607 $1,667,537 $2,087,827 14% $2,190,716 5%
Major City Goal Contributions
HR supports the Economic Resiliency, Cultural Vitality and Fiscal Sustainability Major City Goal through
enhancement of City operations related to employment and training and development as well as
efficiencies within the Oracle Cloud system. HR also contributes by negotiating successor agreements with
employee groups in alignment with Council adopted Labor Relations Objectives.
The program also supports the Diversity, Equity, and Inclusion Major City Goal through review and revision
of Human Resources policies and practices and improvements to the recruitment and selection process.
2 Increased recruitment expenses, legal counsel to support labor negotiations and investigations, staff onboarding
3 Increased funding for staff training and development
Table A-36:
Financial Plan Page 162 Page 574 of 954
Operating Budget Human Resources
General Fund Wellness
Wellness
Program Description
The Wellness Program aids in managing the life experience of our employees by providing employee tools
and education to improve their physical and emotional well-being, thus enhancing employee productivity,
resiliency, and performance. The program provides employees with education and programs around
fitness, nutrition, and health and safety information. In addition, the program provides professional
counseling and referral services through the Employee Assistance Program and a Preventative Mental
Health Services Program for public safety employees.
Core Services & Objectives
Maintain wellness rooms for employee use.
Encourage physical activity and healthy lifestyle.
Provide health, wellness, and safety information to employees.
Continue to encourage utilization of the Employee Assistance Program.
Provide public safety employees access to preventative mental health services.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $7,983 $14,911 $50,358 238% $52,819 5%
Other Operating Costs $2,151 $2,500 $3,000 20% $3,000 0%
Wellness Total $10,134 $17,411 $53,358 206%4 $55,819 5%
4 New Preventative Mental Health Program for Public Safety Employees.
Table A-37:
Financial Plan Page 163 Page 575 of 954
Operating Budget Human Resources
Insurance Fund Risk Management
Risk Management – Insurance Fund
Program Description
The Risk Management Program aims to protect the organization through risk transfer, risk control and risk
avoidance. Safety in the workplace and in the community is promoted by minimizing accidents, reducing
liabilities and associated costs. The City maintains an Insurance Fund for the purpose of paying its annual
premiums for liability, workers’ compensation, special events, volunteer, property, and other insurances
needed to protect the City and to manage the fluctuations in claims-related expenses.
Core Services & Objectives:
Monitor liability claims and workers’ compensation claims and recommend operating changes to
reduce risk of liability or injury.
Review insurance plans and coverage and process renewals annually, seeking the most cost-
effective methods of insuring.
Review standards for insurance requirements in contracts with those who do business with the
City to make sure the City is adequately protected in the event of accidents or incidents.
Continue to review and update safety policies and procedures, increase safety awareness, and
reduce preventable injuries through training and education of employees. Support a culture of
safety among city employees, maintain compliance with applicable regulations, and implement
improvements to ensure a high quality of life in the community.
Insurance Fund Policy: The City shall maintain an Insurance Fund to manage payments for
liability, workers’ compensation, crime, pollution, special events, property, and volunteer insurance.
Within the Insurance Fund, a self-insured retention (SIR) will be set aside to cover expenses associated
with claims from the Excess Liability Insurance Program. The SIR will be funded based on 150% (75%
confidence level) of the previous five-year average claims experience (claims paid, reserves for known
claims, and administrative expenses). The Insurance Fund will maintain a reserve sufficient to guard
against substantial claims which will be determined based on annual actuarial report information.
If required due to depletion of fund balance, sufficient annual appropriations will be transferred to the
Insurance Fund from the General Fund in the amount needed to ensure the 150% funding status.
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Transfers In from General Fund5 4,146,445 4,250,000 6,000,000 41% 6,000,000 0%
5 The Insurance Fund is funded entirely through the General Fund transfer in; however, the Enterprise Funds’
allocations are determined through the annual Cost Allocation Plan and budgeted as part of the reimbursement
transfers into the General Fund.
Table A-38
Financial Plan Page 164 Page 576 of 954
Operating Budget Human Resources
Insurance Fund Risk Management
Fund Balance and Fiscal Outlook
The intent for the insurance fund balance is to maintain an adequate reserve that can be used to pay
unanticipated claims costs. Therefore, the funds being transferred in from the general fund are greater
than the estimated expenses, so that the remaining funds may be added to the reserve.
Projected 2022-23 Year End
Insurance Fund Balance $958,000
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Workers Comp Insurance $2,181,044 $2,844,913 $2,516,607 -13%6 $2,610,281 4%
Liability Insurance $1,627,589 $1,677,911 $2,431,373 45%7 $2,333,686 -4%
Other Insurance $442,439 $515,205 $607,493 18%8 $724,892 19%
Grand Total $4,251,072 $5,038,029 $5,555,473 10% $5,668,859 2%
Major City Goal Contribution
Supports the Economic Resiliency, Cultural Vitality and Fiscal Sustainability Major City Goal through
continuing to monitor liability and workers’ compensation claims through actions aimed at reducing
liability and workers’ compensation costs.
6 Transition in CJPIA membership from primary program to excess program, which lowers premium costs
7 A portion of this funding is to build up the fund reserve for future unanticipated costs
8 Bound by changes in market conditions for insurance premiums
Table A-39:
Table A-40:
Financial Plan Page 165 Page 577 of 954
COMMUNITY SERVICES GROUP
Community Development • Parks & Recreation • Public Works • Utilities
The Community Services Group (CSG) is comprised of the City’s four operating departments. This
reorganization was established as a part of The Organization of the Future in 2019 as a long-term approach
to coordinate four departments with related staffing structures and function. The purpose of this effort
was to provide more direct support and strategic coordination between key operating departments
delivering direct services and projects to the City. CSG operations are comprised of General Fund and the
City’s four Enterprise Funds: Water, Sewer, Parking, and Transit.
Community Services Group Administration
CSG’s Administration’s focus is on the production of core services, fiscal management of the Capital
Improvement Program, General Fund Departmental budgets and the four enterprise funds, the
advancement of key Major City Goals and objectives, identification of new departmental efficiencies,
communication with the public, and City staffing transitions. The CSG Business and Administrative
Manager reports to the Assistant City Manager for Community Services and directly manages the four
departments’ analysts, a Financial Analyst – Infrastructure Investment, and an Administrative Assistant.
This supports coordination and collaboration related to fiscal, policy, and project management efforts
among the four departments. The CSG Analyst team continues to focus on budgetary support as Fiscal
Officers, streamline processes and procedures aligned with City policies, department project management
support, and analyze policies and provide recommendations.
A continued new focus in the next Financial Plan is the addition (via department transfer, Finance to CSG)
of the Financial Analyst to the CSG. The Financial Analyst – Infrastructure Investment position is new to
the organization within the last 5 years, originally housed within the Finance Department, and plays a
crucial part in the management of the AB 1600 program, including development agreement and impact
fee oversight, among other fiscal responsibilities. This position was moved to be within the CSG, as the
position collaborates closely with all the departments within CSG, Community Development, Parks and
Recreation, Public Works, and Utilities, related to oversight of Community Facility Districts (CFDs),
development agreements, reimbursement agreements, and impact fee fund management that affect all
of these departments. The Financial Analyst position functions better centralized under CSG, with
continued strong partnership and communication with the Finance Department.
The core focus of CSG remains to directly serve and communicate with the public while providing high
quality services projects and programs.
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $614,821 $517,213 $687,514 33%1 $725,710 6%
Contract Services $37,527 $42,833 $40,000 -7%$40,000 0%
Other Operating Costs $7,764 $13,021 $13,020 0% $13,020 0%
CSG Admin Total $660,112 $573,066 $740,534 29% $778,730 5%
1 This increase is a result of the Financial Analyst – Infrastructure Investment position moving from the Finance
Department to the Community Services Group Administration, as detailed above.
Table A-41:
Financial Plan Page 166 Page 578 of 954
Operating Budget Community Development
COMMUNITY DEVELOPMENT
Mission Statement
Our mission is to serve all persons in a positive and courteous manner and help
ensure that San Luis Obispo continues to be a healthy, safe, attractive, and
enjoyable place to live, work, or visit. We help plan the City's form and character,
support community values, preserve the environment, promote the wise use of
resources, and protect public health and safety.
About the Department
The Community Development Department includes the Administration, Housing Policy and Programs,
Planning, Engineering, and Building & Safety divisions which develop, implement, and track guiding
policies in the City's General Plan. Plans for new construction are reviewed through planning applications
to ensure compliance with city standards and policy objectives. Construction is supported through the
implementation of zoning, building, and engineering codes and coordination with various City
departments. The Community Development Department provides service to the community directly at its
public counter, and services are offered online on its website. The department helps maintain the health
and safety of the community directly through code enforcement activities and indirectly by guiding the
City's urban form from concept to construction.
Renovation of the 100-year-old Anderson
Hotel building will occur in 2023-24,
providing 68 low and very-low income
housing units and ensuring historical
preservation of this signature Downtown
housing project.
Financial Plan Page 167 Page 579 of 954
Operating Budget Community Development
The Department at a glance
1 With the consolidation of policies by the Community Development Department and the Finance Department , plan
check services will be fully budgeted at the beginning of the year instead of adjusting the budget as revenue is
received. These services are 100% cost recovered, and the administrative change has no fiscal impact to the budget.
(See SOBC #7 in the following section).
2 During the Supplemental budget process, the Community Development Department transferred Human Relations
and Grants-in-aid budget lines to the Administration Office of Diversity, Equity, and Inclusion (DEI).
Staffing
71%
Contract
Services
15%
14%
Chart A-43: EXPENDITURES BY FUNCTION
Other Operating Costs
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Building and Safety $3,235,392 $2,133,870 $3,085,371 $3,106,867
Commissions and Committees $13,508 $34,948 $37,240 $37,240
Community Dev Admin $902,888 $968,991 $954,447 $991,111
Engineering $751,455 $839,745 $989,596 $1,035,7591
Housing Policy and Programs $1,017,132 $950,332 $1,203,675 $1,175,706
Human Relations2 $63,055 $0 $0 $0
Planning $1,827,448 $1,855,172 $1,942,382 $2,163,464
Community Development Total $7,810,879 $6,783,059 $8,212,711 $8,510,146
Table A-42:
Financial Plan Page 168 Page 580 of 954
Operating Budget Community Development
Chart A-44: Department Organizational Chart3
3 Does not include supplemental or contract positions.
Community
Development
(40.00 FTE)
Administration
Community
Development
Administration
(5.00 FTE)
Commissions &
Committees
Planning
(9.00 FTE)
Housing
(5.00 FTE)
Engineering
(6.00 FTE)
Building & Safety
(15.00 FTE)
Financial Plan Page 169 Page 581 of 954
Operating Budget Community Development
Table A-45: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1
Below Market Rate
Administrator
(Consultant
Services)
Originally approved as one-time consultant funding
in the 2021-23 Financial Plan, this consultant
contract is necessary for the overall management
and administration of the City’s inclusionary
Housing Inventory, including ownership units,
rentals, and financing. Over the past several years,
the City’s inclusionary Housing Inventory has grown
substantially. Staff does not have the necessary
training, expertise, capacity, or resources to
effectively accomplish the management and
administration of this effort moving forward. 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.
One-time $150,000 $150,000
2
Historic Resources
Inventory* (MCG
1.4g)
MCG Task 3.2.b - Initiate implementation of the
consultant recommended phased approach to
update the City's historic resources inventory.
One-time $100,000 $150,000
3
Hotel Voucher
Program - CAPSLO*
(MCG 3.2a)
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.
One-time $25,000 $0
4
IT Project
Management
Services
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 Tony Rice to perform as
a contractor in this capacity as projects, such as e-
review, are developed and move forward to
implementation. (Potential for funding to be
allocated from IT Surcharge on building permits.)
One-time $104,000 $0
5
Margarita Area
Specific Plan
Update*
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.
One-time $100,000 $200,000
6
Safe Parking
(Location TBD)*
(MCG 3.2d)
MCG Task 3.2.d - Develop sustainable safe parking
programs One-time $30,000 $0
Financial Plan Page 170 Page 582 of 954
Operating Budget Community Development
SOBC Description Type 2023-24 2024-25
7
Plan Review Policy
Change (65% of
revenue
projection)
CDD and Finance will be consolidating the Building
Permit Plan Check and Development Services
Designation Policies based on several years of
experience operating with both policies in place.
CDD is recommending that its budget and
Development Services Revenue Forecast include the
full cost of plan check services that are contracted
out to consultants. 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 will go away,
but if workload spikes, the policy would enable the
Finance Director to BAR current revenue to CDD's
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).
Ongoing $0 $0
TOTAL $509,000 $500,000
Financial Plan Page 171 Page 583 of 954
Operating Budget Community Development
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals
tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals
are in addition to ongoing community program services (listed in program sub-sections)
Strategic Goal(s)
Lead the implementation of the Housing and Homelessness Major City Goal
Support the implementation of the Climate Action and Economic Recovery
Major City Goals
Provide excellent customer service to internal and external customers and
advisory body members in the processing of permit applications
Ensure a safe community through the implementation of Building and Safety
Division programs, including Code Enforcement
Monitor growth and support and update General Plan policies and Zoning
Regulations standards to ensure coordination with all City Departments that
provide municipal services for the community.
Economic Stability Housing Climate Action DEI Other Department Objectives
Financial Plan Page 172 Page 584 of 954
Operating Budget Community Development
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
2022-23
Actual
2023-24
Target
2024-25
Target
Affordable housing
production
Strategic Goal:
Housing
Number of affordable housing units
secured through entitlements or
construction
115 147 50 50
Provide Excellent Customer
Service
Strategic Goal:
Other Department
Objectives
Customer survey response positivity
rate 88% 79% 85% 85%
Ensure a Safe Community
Strategic Goal:
Housing
Percent of Code Enforcement cases
investigated on-time: First Tier - 24
Hours, Second
Tier - 2 Days, and Third Tier - 3-5 Days
80% 79% 85% 85%
Development Review
activities
Strategic Goal:
Other Department
Objectives
The target goal of meeting cycle times
75% of the time reflects an increase in
more complex and
resource intensive development
review activities.
85% 75% 75% 75%
Building Permit Review
activities
Strategic Goal:
Economic Stability
Percent of building permit reviews
completed within established cycle
times
NA NA 85% 85%
Table A-46:
Financial Plan Page 173 Page 585 of 954
Operating Budget Community Development Admin
General Fund
Community Development Administration
Program Description
The Community Development Administration program provides management and support for the
Planning, Housing Policy and Programs, Engineering, and Building & Safety divisions of the Community
Development Department. The department also supports the work of the City Council through its
recommendations. It provides liaison services to the Planning Commission, Architectural Review
Commission, Cultural Heritage Committee, and the Construction Board of Appeals. The program goals are:
1) providing effective and efficient management and support for other operating divisions; 2) establishing
customer service and performance management standards for the Community Development
Department; 3) coordinating priorities and tasks with other City departments; 4) establishing and
maintaining complete and accurate records of staff and advisory body actions; and 5) providing prompt,
courteous and accurate responses to request for public information.
Core Services & Objectives
Community Development Department leadership, management, and organizational development
Database and records management, including citywide addressing; public information support
services
Building inspection scheduling coordination
Front counter cashiering/revenue collection
Housing and Climate Action Major City Goals
Implement proactive public engagement tools for projects
Identify and support ideas for continued improvement and development within the Community
Development Department
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $742,061 $653,411 $716,087 10% $752,751 5%
Contract Services $38,918 $93,600 $3,600 -96% $3,600 0%
Other Operating Costs $121,910 $221,980 $234,760 6% $234,760 0%
Community Dev Admin
Total $902,888 $968,991 $954,447 -2%$991,111 4%
Table A-47:
Financial Plan Page 174 Page 586 of 954
Operating Budget Community Development Admin
General Fund
Major City Goal Contributions
The Administrative division supports maintaining complete and accurate records of staff and advisory
body actions and helps with administrative support and reporting requirements for major city goals
related to housing (including homelessness) and economic stability.
Opportunities and Challenges
Software and online tools are becoming increasingly crucial to our efficiencies and efficacy in supporting
the engagement of CDD with its customers. The implementation and use of online payments and online
scheduling of building inspections by customers will reduce the volume of in person meetings and calls
staff receives. The continued implementation and expansion of online services will allow the applicant to
review plans and inspection notes online rather than calling CDD. Reducing call volume will translate to
increased time to support other division’s major city goal objectives by the Administrative division staff.
The division will see the onboarding of a new Department Head to CDD, and that will take significant time
and effort, internal and external to the Department.
Financial Plan Page 175 Page 587 of 954
Operating Budget Commissions & Committees
General Fund
Commissions & Committees
Program Description
Two commissions, one committee, and an appeal board advise the Community Development Director and
City Council on planning, building, and historic preservation issues. Community Development Department
staff serve as the liaisons to four commissions and committees.
Core Services & Objectives
Planning Commission (PC). Implement General Plan, Zoning Regulation, Subdivision Regulation,
and Community Design Guideline goals, policies, objectives, and standards in plan and project
reviews.
Architectural Review Commission (ARC). Implement the Community Design Guidelines in plan
and project reviews.
Cultural Heritage Committee (CHC). Help identify and advise on suitable treatment for
archaeological and historical resources.
Construction Board of Appeals. Hear and decide appeals of orders, decisions, and determinations
made by the Chief Building Official and serve as the Appeals Board for Disabled Access.
City Objectives. Protect, maintain, and enhance the social and economic values created by past
and present investments in the community by requiring all future development to respect these
traditions and require that all buildings and structures placed on the land respect the natural
landforms and become a compatible part of the total community environment.
Long-Term Financial Stability. Maintain a sustainable City budget and level of services by focusing
on infrastructure maintenance, new revenue sources, and prudent use of Local Revenue Measure
Funds.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $11,915 $23,748 $26,040 10% $26,040 0%
Other Operating Costs $1,593 $11,200 $11,200 0% $11,200 0%
Commissions and
Committees Total $13,508 $34,948 $37,240 7% $37,240 0%
Table A-48:
Financial Plan Page 176 Page 588 of 954
Operating Budget Commissions & Committees
General Fund
Major City Goal Contributions
Commissions and Committees review and approve entitlements for housing projects, density bonuses,
tract maps, conditional use permits, and affordable housing projects. The planning staff prepares and
oversees reports that study the environmental effects of development projects and identify ways of
avoiding environmental damage (CEQA). Staff attend meetings, prepare reports, and present
development proposals to the Commissions and Committees to evaluate for consistency with the City's
General Plan and all other applicable plans and regulations.
Opportunities and Challenges
Consistent with state legislation that requires streamlined review of housing development projects, the
City has updated development review processes to reduce the number of public hearings required and
increased thresholds that trigger various levels of development review. This change has resulted in fewer
housing development projects requiring review by Commissions and Committees. In the 2023-25 Financial
Plan period, the Cultural Heritage Committee will be working with staff and consultants to kick off an
update to the City’s Historical Resources Inventory. The Planning Commission will be supporting staff by
holding public hearings and providing input on long-range planning projects to increase housing
production in the southern part of San Luis Obispo, through updates to the Margarita Area Specific Plan
and Airport Area Specific Plan.
Financial Plan Page 177 Page 589 of 954
Operating Budget Planning
General Fund
Planning
Program Description
The Planning Program assists the community with land use issues. It evaluates all development
applications (including City-sponsored projects) relating to compliance with the City's General Plan, Zoning
Regulations, Subdivision Standards, and other development regulations. Development review also
maintains the City’s development regulations. Reviewing development proposals before allowing
construction is a critical component of the City’s General Plan implementation strategy. New development
must conform to goals and standards established for housing, economic development, and environmental
protection. Program goals are to 1) assist in achieving desired development in conformance with
established policies, guidelines, standards, and acceptable timeframes; 2) provide timely processing of
applications consistent with State and Local laws and policies; 3) create and maintain enjoyable places to
live, work, and visit; 4) improve resiliency and protect the public health, safety, and welfare, and 5) create
high public awareness of decisions on planning and environmental issues.
Core Services & Objectives
Residential Development. Support the City’s Housing Program objectives, specifically, facilitate
the approval of housing developments for Margarita Area, Orcutt Area, San Luis Ranch, Avila
Ranch, Froom Ranch, and other sites identifies in the Housing Element and other key infill sites.
Commercial Development. Support the City’s Economic Development Program objectives by
facilitating approval of mixed-use projects and businesses which bring head-of-household jobs to
the community.
Process Improvements. The Department continues to focus on ways to improve its processes. For
example, CDD is implementing E-Review, an entirely paperless process for the City’s processes,
including planning applications, subdivision maps, public improvement plans and building
permits.
Performance Measures. Continue to monitor a comprehensive performance management
system to track the efficiency and effectiveness of permit reviews.
Financial Plan Page 178 Page 590 of 954
Operating Budget Planning
General Fund
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,475,720 $1,423,301 $1,482,837 4% $1,549,479 4%
Contract Services $344,254 $396,671 $431,345 9% $585,785 36%
Other Operating Costs $7,474 $35,200 $28,200 -20% $28,200 0%
Planning Total $1,827,448 $1,855,172 $1,942,382 5% $2,163,464 11%
Major City Goal Contributions
The Planning division reviews plan submittals and works to increase the production of housing options for
all income groups in the community. This includes working with developers, commissions, and
committees to align projects with City housing goals and objectives.
Opportunities and Challenges
Opportunities to implement features of our permitting software, Energov, is becoming increasingly crucial
to our ability to serve internal and external customers. Software that allows customers to submit plans
online will also allow customers to see project status in real-time. A major opportunity for housing
production occurred with the County’s update to the Airport Land Use Plan. Over the next two years, the
Department will be working on plan changes to the Airport Area and Margarita Area specific plans to
encourage more housing production. These plan changes will support future efforts to create both market
rate housing and affordable housing. Significant infrastructure needs in the southern part of the City will
continue to present a challenge as inflation, high interest rates, and other factors make it difficult for
development to absorb these costs. Finally, the Community Development Department will be accepting
the transfer of a City Arborist position from Public Works. The position will advise the Community
Development Director on the disposition of trees as part of new development projects and will continue
to support the Tree Committee.
Table A-49:
Financial Plan Page 179 Page 591 of 954
Operating Budget Engineering
General Fund
Engineering
Program Description
The Engineering Program oversees the design and construction of various public works projects built by
private developers for city ownership. These projects typically include additions to the City's water,
wastewater, recycled water storm drain, street, flood protections, and park systems. This program is also
responsible for reviewing the design of commercial, industrial, and residential private development
projects for compliance with the Grading Ordinance, Parking & Driveway Standards, site development,
and drainage designs.
This program is responsible for verifying plan compliance with Waterway Management Plan Drainage
Design Manual and the adopted Post Construction Stormwater Regulations promulgated by the Regional
Water Quality Control Board for all private development projects. To ensure public safety, this program
also grants permission for various uses of public right-of-way and issues permits accordingly. The program
represents the City as Floodplain Manager and prepares regular responses and reports to Federal
Emergency Management Agency (FEMA) and the public in this regard. The program reviews development
projects for compliance with the Tree Regulations and coordinates with the City Arborist on tree removals,
tree plantings, and tree preservations requirements. The program’s goal is to ensure compliance with the
City's Engineering Standards, Community Stormwater Regulations and to provide for the construction of
safe, effective, and efficient public works which meet established engineering standards and
specifications.
Core Services & Objectives
Development Review. Reviewing parcel maps, subdivision maps, and subdivision construction
plans as required by the Subdivision Map Act; reviewing submittals for private building and
development project plans for compliance with standards; reviewing Planning Applications for
the establishment of Mitigation Measures, Conditions, and code requirements.
Encroachment Permit Review/Issuance. Process all encroachments into the public right-of-way,
including private constructions, construction staging, pedestrian and traffic control plans, utility
installation and repair, news racks, and outdoor dining facilities. Coordinate with the Public Works
Department inspectors regarding plan requirements, project conditions, compliance with City
Engineering Standards, and permit conditions. Monitoring Truck routes and issuing wide-load
transportation/trucking permits.
Recordkeeping. Preparing and filing record drawings of private and public works construction;
preparing legal descriptions for property transactions; preparing abandonment, easement, and
covenant requests. Document all construction activities, reports, and filings related to the
Floodplain Management Regulations.
Miscellaneous Projects. Coordinating various engineering activities, enforcing FEMA standards
intended to reduce damage caused by flooding; implementations of National Pollution Discharge
Elimination System (NPDES) initiatives. Implementation of the stormwater ordinance and post-
construction guidelines being prepared by other departments or divisions. Participation in
Financial Plan Page 180 Page 592 of 954
Operating Budget Engineering
General Fund
neighborhood wellness efforts related to sidewalk upgrades, tree plantings, and undergrounding
of overhead wiring. Downtown vitality efforts relate to private development projects and the
enforcement of our news rack ordinance.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $725,202 $769,245 $919,096 19% $965,259 5%
Contract Services $19,872 $57,000 $57,000 0% $57,000 0%
Other Operating Costs $6,381 $13,500 $13,500 0% $13,500 0%
Engineering Total $751,455 $839,745 $989,596 18%4 $1,035,759 5%
Major City Goal Contributions
The Engineering Division supports the Planning Division entitlement process, Building Division permitting
process, and is the lead for processing subdivision maps and associated public improvement plans. The
most significant housing development projects have required a subdivision map and related improvement
plan approvals. As such, most of the work of the division supports housing. The division is involved in
many in-fill housing projects, mixed-use projects, and commercial developments.
Opportunities and Challenges
The Engineering division assists other City departments, divisions, and the development community in the
collaborative contribution to our Major City Goals. The division continues to endeavor to meet established
process cycle times, provide timely encroachment permits, and coordinate with other stakeholders,
including the Downtown Association, on permits within the downtown core. The challenges include the
onboarding of new staff, development review process, and “lumpy” applications (large projects that are
processed over significant periods of time). Keeping up with the workload in a timely manner will continue
to be a challenge. In addition, significant staffing changes in the Division will present opportunities and
challenges: the opportunities come with a new Engineer I-III resource recently added into the division
(inter-department transfer from Planning with no fiscal impact), and the challenges are associated with
the retirement of a 35-year employee who had lots of institutional knowledge about the City’s standards
and best practices.
4 During the 2022-23 Fiscal Year, Community Development received approval to transfer a vacant position
from the Planning Division to the Engineering Division to address workload.
Table A-50:
Financial Plan Page 181 Page 593 of 954
Operating Budget Engineering
General Fund
The Engineering Division supports the Planning Division entitlement process, Building Division permitting
process, and is the lead for processing subdivision maps and subdivision improvement plans. The most
significant housing development projects require a subdivision map and related improvement plan
approvals. As such, most of the work of the division supports housing. The housing and construction
industry supports the economy and jobs and is a vital component of the community.
Financial Plan Page 182 Page 594 of 954
Operating Budget Building and Safety
General Fund
Building and Safety
Program Description
The Building and Safety Division implements the adopted construction codes and other state and local
laws that regulate building construction, use, and maintenance, including disabled access regulations, and
the California Building, Residential, Electrical, Plumbing, Mechanical, Energy, and Green Building Codes.
The program operates a public permit counter responsible for the processing and coordinating
construction applications which are reviewed by other departments, including Public Works, Planning,
Utilities, and Fire, as well as external agencies such as County Environmental Health and the Air Pollution
Control District. Building & Safety is responsible for the calculation and collection of all fees at the time of
construction permit issuance. The program also includes a major focus on Neighborhood Wellness and
code enforcement to address blight and public nuisances to preserve the community's aesthetics, health
and safety, property values, and the quality of life for city residents. Overall program goals are a safe,
accessible, and energy-efficient build environment that is compliant with all applicable construction
regulations.
Core Services & Objectives
Community Health and Safety. Building inspectors ensure new and remodel construction adheres
to state and local laws for building, electrical, mechanical, and plumbing codes. Ensure new
development is constructed in accordance with the highest standards of safety and existing
structures are maintained in safe condition.
Permitting Center. Receive and review building permit applications for completeness. Route to
required departments for review. Ensure efficient and timely plan review. Coordination and
collection of building permit fees and impact fees. Permit issuance.
Plan Review. In-house pre-application review process for applicants that have complex & mixed-
use projects for code compliance as well as for other applicants seeking advice and coordinate
with other divisions as needed.
Neighborhood Preservation. Promote and preserve neighborhood wellness by coordinating
proactive code enforcement activities and timely compliance with a variety of regulatory
programs city wide.
Code Enforcement. Investigate potential building code and land use violations in response to
complaints. Enforce fire and life safety codes on public and private property.
Financial Plan Page 183 Page 595 of 954
Operating Budget Building and Safety
General Fund
Contract Services $653,308 $35,000 $244,000 597% $140,000 -43%
Other Operating
Costs $807,220 $83,174 $847,347 919% $885,706 5%
Program Total $3,235,392 $2,133,870 $3,085,371 45% $3,106,867 1%
Major City Goal Contributions
The Building and Safety division reviews initial plan submittals and issues permits for all development in
the City, including affordable housing projects and solar permits. The program also manages and tracks
the Clean Energy Choice Reach Code from the beginning to end of a permit application.
Opportunities and Challenges
With the addition of two full-time Building Permit Technicians, faster processing times and opportunities
to generate additional revenue from permit processing will be realized. Vacancies in the Code
Enforcement group will reduce the amount of pro-active code enforcement that can be conducted until
the positions are filled.
5 During times of high workload or when there are vacancies, transfers from the Development Services Designation
and salary savings are routinely used for contract services to augment staff and maintain expected levels of services.
This explains the high actuals for FY 2021-22. FY 2023-24 includes an SOBC for IT project management services,
causing a variance in that year.
6 With the consolidation of policies by the Community Development Department and the Finance Department, plan
check services will be fully budgeted at the beginning of the year instead of adjusting the budget as revenue is
received. These services are 100% cost recovered, and the administrative change has no fiscal impact to the budget.
(See SOBC #7 in the following section).
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,774,865 $2,015,696 $1,994,024 -1%$2,081,161 4%
Table A-51:
5
6
Financial Plan Page 184 Page 596 of 954
Operating Budget Housing Policy & Programs
General Fund
Housing Policy & Programs
Program Description
This section of the Planning Division includes the management, administration, and implementation of
the City’s Housing Element, Inclusionary Housing Program, and federal, state, and local grant and loans
administration. Staff in this program also oversee the streamlined coordination of the City’s
Homelessness Response efforts. Housing program activities include: aggressively seeking grants; issuance
of low-interest loans; development of public-private housing partnerships, and other types of affordable
housing assistance; monitoring and supporting new and existing deed-restrictions on units in the City’s
Below Market Rate (BMR) portfolio; coordinating on housing programs with public and private agencies;
evaluating non-identified infill areas for new residential developments; managing the Community
Development Block Grant (CDBG), Affordable Housing Fund (AHF), and Grants-in-Aid (GIA) program;
offering technical assistance to other departments; and preparing federal environmental documents
associated with housing financing applications. Additionally, the Housing Policy & Program section
provides funding assistance, policy recommendations, and outreach support to help meet the housing
needs of unhoused individuals in San Luis Obispo. The goals of these programs are to: 1) Achieve the City’s
housing goals set forth in the General Plan; 2) Collaborate with regional partners to develop and support
emergency shelter and interim and permanent housing programs that meet immediate housing needs of
unhoused individuals; 3) serve as a liaison to the community and Council, regarding homelessness issues
and initiatives; and 4) monitor and inform the Council, Advisory Bodies, and the community on policies,
programs, achievements, and areas for improvement for the City’s housing and homelessness efforts.
Core Services & Objectives
Housing Programs Coordination. Coordinate with housing developers to facilitate the production
of housing, particularly all forms of affordable housing; Including the development of
partnerships (when appropriate) to expand prevalence of applications for grant and other
housing-related financing and funding programs; BMR portfolio administration and monitoring;
grant and City financing program administration and monitoring (i.e. CDBG, AHF); annual housing
reporting (i.e. DOF, APR); and Housing Element Program implementation.
Housing Element Implementation. Implement Housing Element policies and programs; facilitate
development of missing-middle affordable, supportive, and transitional housing options; assist
with identifying gaps and financial support for needed infrastructure within associated housing
developments.
Homeless Services Coordination. Coordinate City’s Homelessness Response efforts among
various key staff from City Departments in accordance with the Homelessness Response Strategic
Plan; initiate and participate in regional collaboration efforts and seek out grant opportunities to
support regional solutions to prevent and address homelessness; support the Mobile Crisis Unit
(MCU) and Community Action Team (CAT) in conducting outreach to the chronically homeless
population; and continue to expand support and funding for non-profit social service providers
that specialize in housing and homeless services to connect unhoused individuals with services
and housing.
Financial Plan Page 185 Page 597 of 954
Operating Budget Housing Policy & Programs
General Fund
Homeless Services Support. Overall administration and management of annual financial
assistance to Community Action Partnership of SLO County (CAPSLO) for ongoing operations and
associated programs for the 40 Prado Homeless Services Center and other homeless service
providers funded through grant opportunities.
Grant and Loan Administration and Management. Overall program administration and
management of the City’s various grant and loan programs, including the Community
Development Block Grant (CDBG), Grants-in-Aid (GIA), LEAP, REAP, SB2, SLFRF, Affordable
Housing Fund (AHF), and if applicable Encampment Resolution Funding and Homekey Grants.
Low Income Water and Sewer Customer Subsidy, Fee waivers, and clean energy programs.
Coordinate with Utilities and Finance Departments to continue providing reduced rates for low-
income utility customers.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $464,219 $602,506 $715,849 19% $742,880 4%
Contract Services $549,187 $337,826 $472,826 40% $417,826 -12%
Other Operating Costs $3,727 $10,000 $15,000 50% $15,000 0%
Program Total $1,017,132 $950,332 $1,203,675 27%7 $1,175,706 -2%
Major City Goal Contributions
The implementation of the City’s Housing Element and Homelessness Response Strategic Plan are key
major city goal work efforts.
Opportunities and Challenges
The Housing Policy and Programs division has a specific focus on housing opportunities, production,
affordability and advocating for resources and implementation of the strategic plan related to
homelessness. This includes the Housing Policies & Programs Manager, Housing Coordinator,
Homelessness Response Manager, and an Assistant Planner to aid in taking a collective approach to the
City’s housing and homelessness needs. The group also includes an Administrative Specialist to support
our homelessness response, and staff is working to hire for that role. Ongoing changes to State Legislation
related to Housing and Land Use policies may require periodic amendment and/or updates to housing
policies and programs. Regional capacity for homeless services and housing also present challenges, which
the City is actively working to address, in collaboration with the County and regional partners.
7 During FY 2022-23, Community Development received approval for an Administrative Specialist,
Homelessness Response position to support the work of the Homelessness Response Manager. The
overall increase can also be attributed by two SOBCs for contract services from CAPSLO, allocated in FY
2023-24.
Table A-52:
Financial Plan Page 186 Page 598 of 954
Operating Budget Parks and Recreation
PARKS AND RECREATION
Mission Statement
Inspiring happiness by creating community through people, parks,
programs, and open spaces.
About the Department
The Parks and Recreation Department is committed to providing quality parks and facilities (such as the
SLO Swim Center, Damon-Garcia Sports Complex, and Laguna Lake Golf Course) where recreation
programs, special events, activities for youth and seniors, and cultural and educational opportunities
occur in an effort to encourage wellness and develop community through leisure, cultural, and social
pursuits. The Department also protects and preserves the City’s natural resources and open spaces and
manages the Citywide Volunteer Program. Parks and Recreation has returned to pre-pandemic program
offerings with increased focus on community building as highlighted in the Parks and Recreation Blueprint
for the Future (General Plan Parks and Recreation Element).
The Parks and Recreation budget is predominately comprised of staffing costs. In addition to the annual
full-time Parks and Recreation employees, the Department relies heavily on supplemental employees who
provide service to the community year-round. Depending on the season, the Department may have 150
to 200 supplemental employees providing services such as lifeguarding and instructional swim lessons,
providing afterschool childcare, hosting special events and pop-up community events, providing open
space enforcement, promoting all the department activities and classes through social media, and more.
Financial Plan Page 187 Page 599 of 954
Operating Budget Parks and Recreation
The Department at a Glance
1 Includes $10,500 operating budget for the Jack House each year.
Staffing
83%
Contract Services
5%
Other Operating Costs
12%
Chart A-54: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Aquatics $568,014 $633,304 $605,083 $613,667
Community Services1 $517,833 $667,882 $707,091 $737,047
Golf Course $831,862 $738,756 $806,211 $824,790
Ranger Service $803,371 $826,321 $898,725 $933,275
Recreation Admin $872,934 $770,190 $919,788 $958,721
Recreation Facilities $299,765 $325,907 $355,639 $363,272
Youth Services $1,228,850 $1,288,694 $1,413,794 $1,469,226
Parks and Recreation Total $5,122,628 $5,251,052 $5,706,331 $5,899,998
Table A-53:
Financial Plan Page 188 Page 600 of 954
Operating Budget Parks and Recreation
Chart A-55: Department Organizational Chart2
2 Does not include supplemental or contract positions.
Parks &
Recreation
(30.00 FTE)
Recreation
Administration
(4.00 FTE)
Facilities
(1.00 FTE)
Youth Services
(8.00 FTE)
Community
Services
(4.00 FTE)
Rangers
(8.00 FTE)
Aquatics
(1.00 FTE)
Golf Course
(4.00 FTE)
Financial Plan Page 189 Page 601 of 954
Operating Budget Parks and Recreation
Table A-56: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1
New Contract -
Recreation
Coordinator
(Public Art)
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 Manager. 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.
One-time $90,550 $89,950
2 Volunteer
Program Budget
As the Volunteer Coordinator has started with the
organization in FY23, this request is to establish the
operating budget that will support and institute the
Volunteer program including training, software,
equipment and supplies.
Ongoing $26,525 $24,775
3
Youth Programs
Scholarship Funds
(MCG 2.8d)
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.
Ongoing $20,000 $25,000
TOTAL $137,075 $139,725
Financial Plan Page 190 Page 602 of 954
Operating Budget Parks and Recreation
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals
tied to Major City Goals, Department Strategic Plans related to the Blueprint for the Future, and other
priorities as they may arise. These goals are in addition to ongoing core community program services
(listed in program sub-sections).
Strategic Goal(s)
Continue to activate parks and public spaces with an emphasis on
neighborhoods and downtown through pop-up events and public art that
promote inclusivity, provides cultural unity, develops a sense of community and
supports healthy lifestyles.
Activate the Parks and Recreation Blueprint for the Future and initiate public
engagement for prioritization of projects, focused on meeting amenity needs
identified by the City-wide inventory assessment and specific to City subareas,
that also factor in to help achieve carbon neutrality, inclusivity and accessibility.
In coordination with the Office of Natural Resources, continue to develop the
new networks of Open Space Trails at Righetti Hill and Miossi preserve while
maintaining the current 4,000+ acres of Open Space and trail system. Continued
focus on fire fuel reduction and creek and flood control in support of the
Wildland Urban Interface (WUI).
Continue to provide quality childcare to the community to support economic
recovery through regional partnerships to enhance and expand equitable
childcare offerings to the community.
Financial Plan Page 191 Page 603 of 954
Operating Budget Parks and Recreation
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
2022-23
Actual
2023-24
Target
2024-25
Target
Provide inclusive, accessible
programming that serves the
whole community.
Strategic Goal: Programming is
Directed to Diverse Users (P&R
Strategic Plan Goal), DEI and
Economic Vitality MCGs
# of Department
Community Events 13 22 25 25
# of non-profit permitted
Facility Uses 92 100 120 120
# of program registrations 4,866 4,575 4,500 4,500
# of program offerings 584 410 400 450
# of childcare spots
filled/offered 1131/1131 2000/2000 1500/1500 1500/1500
# of children receiving
subsidy
61 CAPSLO
45 City
scholarship
70 CAPSLO
35 City
scholarship
60 CAPSLO
50 City
scholarship
60 CAPSLO
50 City
scholarship
In Coordination with Public
Works, engage the public to
prioritize new and revitalized
Recreational Amenities
Strategic Goal: Expand Parks &
Facilities (P&R Strategic Plan
Goal), MCG Economic Stability
# of public outreach
meetings 3 4 6 6
# of updated or new parks
and amenities in process 4 5 5 5
Creates and fosters a sense of
community through citizen
involvement
Strategic Goal: Maximize
Community Resources &
Collaborations (P&R Strategic
Plan Goal)
# of volunteers/hours 79/1495hrs 164/1935hrs 380/4100hrs 480/5800hrs
# of temporary Public Art
or Cultural Art Events 4 4 5 5
Leverage technology to engage
the community and promote
program offerings
Strategic Goal: Programming is
Directed to Diverse Users (P&R
Strategic Plan Goal)
# of Instagram followers 6,295 7,000 7,800 8,700
# of Facebook followers 3,920 4,500 5,000 5,600
Open Space Preservation and
Enhancement
Strategic Goal: Nurture Open
Space (P&R Strategic Plan Goal),
Climate Action MCG
# of miles of Open Space
trails maintained 62 65.5 66.5 68
# of staff hours dedicated
to fuel reduction 1,687 3,300 4,000 4,000
# of encampment site
clean-ups removed from
Open Spaces
85 90 110 120
Table A-57:
Financial Plan Page 192 Page 604 of 954
Operating Budget
General Fund Recreation Administration
Recreation Administration
Program Description
The Recreation Administration Program plans for new improvements to existing parks and recreation
facilities, applies for, and administers grant programs, and researches industry trends and best practices.
It provides clerical assistance department-wide, including the hiring of supplemental staff, and manages
the overall department budget. Staff provides support to the Parks and Recreation Commission, an
advisory body, and manages the Public Art program and City-wide Volunteer program.
Core Services & Objectives
Department Administration and Leadership
Supplemental staff recruitment and onboarding
Oversees Department and Division budgets for financial sustainability and accountability
Oversees Registration Software and program registration
Provides customer service to the public associated with Department programming
Support and facilitation of Parks and Recreation Commission, Public Art Program
implementation, Public Art Fund and policy development
Recreational Capital Improvement Project Management in alignment with the Parks and
Recreation Plan and Element of the General Plan
Management of Parkland and Public Art Impact Fee Funds
Marketing and Community Engagement surrounding Recreational programming and
construction of recreational facilities
Implement and/or plan for the Parks and Recreation Department Strategic Plan
Management and coordination of City-wide Volunteer Program
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $784,677 $673,135 $831,658 24% $872,691 5%
Contract Services $28,986 $15,255 $11,700 -23%$10,100 -14%
Other Operating Costs $59,270 $81,800 $76,430 -7%$75,930 -1%
Recreation Admin Total $872,934 $770,190 $919,788 19% $958,721 4%
3 Includes an SOBC for a new Public Art Coordinator position (1.00 FTE).
Table A-58:
3
Financial Plan Page 193 Page 605 of 954
Operating Budget
General Fund Recreation Administration
Recreation Administration supports the Economic Recovery Goal and the Diversity, Equity, and Inclusion
goal through supporting Arts and Culture, providing scholarship opportunities for program registrations,
and assisting in Downtown Vitality efforts.
Opportunities and Challenges
The Department is focused on community outreach and planning for a variety of new and improved
recreational amenities and providing the core services outlined in the major goals and objectives of the
Parks and Recreation Blueprint for the Future. Several park projects are currently in development,
including the new North Broad Street Neighborhood Park, Laguna Lake Dog Park, upgrades to Emerson
Park, Cheng Park and Mitchell Park. The Righetti Ranch Parks Project has started its planning and design
phase, and Mission Plaza is set to receive major upgrades to its restroom facilities and seating areas.
Playground equipment upgrades are also scheduled for DeVaul Park and Vista Lago Park.
Other Key Points
As the City's Public Art Program grows, the Department has identified the need and submitted an SOBC
to add a Public Art Coordinator position to coordinate the day-to-day operational needs of this vibrant
program, as the Recreation Manager continues to oversee strategic direction and partnerships in support
of the Public Art Program. Similarly, with the significant increase in requests and inquiries for volunteer
services to support the community and City services, in FY 2023, the Department hired a Volunteer
Coordinator to launch and manage a centralized, City-wide volunteer program. The Volunteer Coordinator
is tasked with the marketing, recruitment, tracking of hours, risk management, recognition events, and
globalized program area support. There is an SOBC request to provide a modest increase in program and
software budget items for this Coordinator to support and engage with volunteers.
Major City Goal Contributions
Financial Plan Page 194 Page 606 of 954
Operating Budget
General Fund Facilities
Facilities
Program Description
The Facilities Program manages, supervises, and schedules the use and maintenance of community
recreation buildings and reserved park areas, and oversees the approval and issuance of facility rental
permits, banner permits, external special events, and film permits. The department additionally supports
the Downtown Dining Mission Plaza program through equipment set-up and staffing.
Core Services & Objectives
Manage and coordinate the use of City indoor and outdoor facilities to optimize use and
availability
Manage the commemorative Bench Program and associated Donations
Coordination of external Special Event Agreements, Street Banner Reservations and
Commercial Filming Permits
Hire, recruit and train supplemental staff to facilitate use of City’s indoor and outdoor facilities
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $277,455 $271,892 $292,734 8% $300,367 3%
Contract Services $9,975 $35,100 $37,175 6% $37,175 0%
Other Operating Costs $12,335 $18,915 $25,730 36% $25,730 0%
Recreation Facilities Total $299,765 $325,907 $355,639 9% $363,272 2%
Major City Goal Contributions
Facilities supports the Economic Recovery Major City Goal and Downtown Vitality by providing resources
to assist with OpenSLO.
Opportunities and Challenges
As facilities resume reservations post-COVID, one challenge has been the promotion of the availability for
community rentals for indoor facilities, which has lagged following the lifting of state and county health
guidelines. Additionally, there has been an increase of internal City and County uses of the indoor facilities,
which are not charged fees. Staff are developing a promotional campaign to showcase the variety of
indoor facilities available for community rental. As a Fee Study moves forward, Facilities will be assessing
the current agreements with associations and organizations with the potential to restructure fee rates for
non-profit, for-profit, local, non-local, and competitive organizations. A focus will be evaluating the
opportunity for additional tier pricing structures and appropriate fees to support the different rental
classifications.
Table A-59:
Financial Plan Page 195 Page 607 of 954
Operating Budget
General Fund Youth Services
Youth Services
Program Description
The Youth Services program provides licensed childcare during non-school academic periods (before and
after school, spring break, teacher workdays, and throughout the summer) with a focus on healthy and
positive development of children through anti-bias curriculum, STEAM based activities, social experiences,
focus on inclusion, and opportunities that promote learning, awareness of community, fitness and health,
academic support and recreational play.
Core Services & Objectives
Collaborate with SLCUSD to provide school age childcare programs on City school campuses
and CAPSLO to provide subsidized care for qualifying families
Provide school age childcare through the State Community Care Licensing
Continue to assess and modify the current business practices to optimize the number of
children receiving care (accommodating wait list) and accommodate the increasing number
of children needing care due to changes in school schedules and increased TK programs in the
school district
Provide a variety of childcare programming during school closure times, including: before and
after school childcare, summer camp, Spring Break Camps and Teacher Workday camps
Develop inclusive care programs with community partners to provide support for children
with special needs (using agency partners and internal trained support staff)
Stay current on professional trends, both academic and developmental, and incorporate
trainings and practices to ensure an environment that is diverse and inclusive
Recruit, onboard and retain quality staff through professional development opportunities and
relevant workforce training
Plan and implement curriculum which spotlights community partnerships, educational
opportunities, guest speakers and local field trips, encouraging children to be lifelong learners
and active community members
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,079,262 $1,142,924 $1,247,524 9% $1,292,526 4%
Contract Services $22,574 $20,300 $47,800 135% $52,950 11%
Other Operating Costs $127,014 $125,470 $118,470 -6%$123,750 4%
Youth Services Total $1,228,850 $1,288,694 $1,413,794 10% $1,469,226 4%
Table A-60:
Financial Plan Page 196 Page 608 of 954
Operating Budget
General Fund Youth Services
Major City Goal Contributions
Youth Services supports the Economic Recovery Major City Goal through business support by providing
childcare to the community to enable residents to return to work. In addition, the division supports the
Diversity, Equity and Inclusion Major City Goal and workforce recruitment and retention by serving as a
community partner involved in the SLO County Child Care Study (First 5’s analysis). The division will review,
evaluate and implement findings from the study as resources permit. Additionally, it is expanding
childcare scholarship opportunities for underserved families.
Opportunities and Challenges
All Youth Services programs are made possible with the efforts of up to 70 supplemental staff, ranging
from entry level Childcare Aides to Child Care Head Teachers. Staff recruitment and retention challenges
have created barriers in the ability to provide enough supplemental staff, to meet the needs of the
program with a current roster which is down to about 50. Program capacity is limited by space available
on the SLCUSD campuses to support the program. Additional challenges include the continued need to
pivot program offerings to align with changing school district schedules and requests, which is also an
opportunity to expand upon a strong partnership and meeting a community need. With the opportunity
to access more space and staff resources, programs could be expanded.
Other Key Points
A recent update to the supplemental salary schedule in response to mandated minimum wage increases
and subsequent compaction has led to an increase in supplemental staffing budget.
Financial Plan Page 197 Page 609 of 954
Operating Budget
General Fund Community Services
Community Services4
Program Description
The Community Services Program hosts a variety of community-based events (community wide and
neighborhood based), manages youth and adult athletic leagues, offers recreational and instructional
activities and classes, manages the City’s community gardens, manages the skate park and senior center,
and manages the Citywide Volunteer Program. The City continues to work collaboratively with local youth
sports groups and San Luis Coastal Unified School District to meet the needs of the community.
Programming promotes community engagement, healthy lifestyles and social interactions. The division is
also expanding childcare scholarship opportunities (sports camps and clinics) for underserved families.
Core Services & Objectives
Continued partnership with Cal Poly Industry Experience Management Department students
to develop and support innovative programming through student projects and internships
Host community-wide events and neighborhood events based on City subareas
Expand enrichment class offerings to the community
Offer sports clinics and summer camps
Coordinate youth and adult athletic leagues
Develop and offer pilot recreational programs designed to support unmet community needs
Serve as liaison to the Jack House Docent program
Coordinate and maintain community gardens
Manage and provide safe programming of the Skate Park
Provide city-wide senior programming and serve as liaison to the Senior Center Board
Develop new marketing strategies for promotion of recreational sports and program offerings
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $358,387 $483,972 $496,111 3% $522,517 5%
Contract Services $87,460 $75,300 $81,100 8% $82,100 1%
Other Operating Costs $71,986 $108,610 $129,880 20% $132,430 2%
Community Services Total $517,833 $667,882 $707,091 6% $737,047 4%
4 Includes $10,500 operating budget for the Jack House each year.
Table A-70:
Financial Plan Page 198 Page 610 of 954
Operating Budget
General Fund Community Services
Major City Goal Contributions
Community Services supports the Economic Recovery Goal through supporting Arts and Culture and
assisting in Downtown Vitality efforts. Additionally, the Division supports the Diversity, Equity and
Inclusion Goal through low and no-cost community programs, including park programs, free city-
sponsored events, and year-round senior programming.
Challenges and Opportunities
The need for community programming and providing low and no-cost programming year-round to the
community, in alignment with the Blueprint for the Future, requires a large supplemental staff resource
base. An ongoing shortage of supplemental and frontline staff can potentially limit the ability to facilitate
youth and adult sports programming, and city-sponsored community events throughout the year, such as
the September Scramble, Monday Meet-ups, Spring Fling, and the Rec is Rad park play series.
Other Key Points
Community Services employs many supplemental employees and the update to the supplemental salary
schedule in response to mandated minimum wage increases and subsequent compaction has led to an
increase in the supplemental staffing budget.
Financial Plan Page 199 Page 611 of 954
Operating Budget
General Fund Ranger Service
Ranger Service
Program Description
The Ranger Service Program preserves and protects the natural resources in the City’s 13 different open
space areas comprising of over 4,040 acres and 65 miles of trails with daily maintenance, construction,
rehabilitation, mitigation projects, and patrol. Rangers conduct year-round environmental education
programs and hikes and educate the community about how to help protect the City’s natural resources
and open spaces.
Core Services & Objectives
Complete installation of adopted trail systems in new Open Space acquisitions
Maintain the Open Space consistent with the adopted Open Space Maintenance Plan
Facilitate mitigation and fire fuel reduction projects in the City’s Open Spaces
Support and maintain protocols regarding debris removal of the City’s creek and riparian areas in
compliance with the City’s Storm Water Program
Conduct environmental education programs and hikes
Support encampment clean-ups and facilitation between the unhoused community and the
Homeless Response Manager and CAT program staff
Remove trash and debris in the City’s Open Spaces and creeks
Patrol open space areas ensuring compliance with the City Open Space Ordinances, the safety of users,
and preservation of the natural environment
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $726,903 $757,541 $822,325 9% $856,875 4%
Contract Services $36,722 $42,400 $40,000 -6%$40,000 0%
Other Operating Costs $39,747 $26,380 $36,400 38% $36,400 0%
Ranger Service Total $803,371 $826,321 $898,725 9% $933,275 4%
Major City Goal Contributions:
Ranger Services supports the Housing Major City Goal through supporting Environmental Protection and
Water Quality and plays a key role in the Climate Action Major City Goal through the team’s work on
Table A-71:
Financial Plan Page 200 Page 612 of 954
Operating Budget
General Fund Ranger Service
preservation, maintenance and enhancement of City’s open space and urban forest, and the team’s
planning and implementation for resilience.
Opportunities and Challenges
The increased usable open space acreage and trails require consistent oversight for maintenance and
stewardship. Expanded environmental education programs such as weekly community topics, user
etiquette videos, monthly educational hikes, and spring and summer break youth camps have increased
the opportunity to educate the community on the surrounding open space amenities.
Other Key Points
Emphasis on fuel management and managing the Wildland Urban Interface (WUI) with other City
departments and divisions (Natural Resources, Public Works, and Fire) have been a focal point for Ranger
Service personnel and resources the past few years with the addition of supplemental Open Space
Technician positions.
Financial Plan Page 201 Page 613 of 954
Operating Budget
General Fund Aquatics
Aquatics
Program Description
The Aquatics Program provides a safe, well-maintained facility offering the community diverse aquatic
activities designed to incorporate recreational swim, fitness, therapy, exercise, rehabilitation, skill
development and socialization regardless of economic status, ability, fitness level or age. The aquatics
program additionally provides well-trained and skilled staff to ensure patron safety and provides
emergency response as needed.
Core Services & Objectives
Provide instructional, lap, and recreational swimming programs
Provide a wide range of aerobic activities to meet a diverse population (therapy, exercise,
etc.)
Maintain a clean, accessible and safe facility as paramount to the prevention of incidents
and injury at the SLO Swim Center
Adjust programing to be creative and meet the needs of the community
Ensure all staff maintain California and American Red Cross certifications and attend
monthly in-service trainings
Provide water safety, educational and preventative events throughout the year
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $481,953 $546,505 $544,272 0% $549,549 1%
Contract Services $37,466 $39,299 $42,581 8% $45,888 8%
Other Operating Costs $48,595 $47,500 $18,230 -62%$18,230 0%
Aquatics Total $568,014 $633,304 $605,083 -4%$613,667 1%
Opportunities and Challenges
There continues to be a significant nationwide and SLO County-wide certified lifeguard shortage. Staff
recruitment and retention challenges have created barriers to having enough supplemental staff. To
ensure proper safety coverage ratios, the SLO Swim Center has had to modify the facility’s public program
hours throughout the year based upon staff availability.
5The increased cost in FY 23 for Other Operating Costs reflects a one -time, $30,000 SOBC for SLO Swim Center
maintenance (lane lines, etc).
Table A-72:
5
Financial Plan Page 202 Page 614 of 954
Operating Budget
General Fund Aquatics
Aquatic programming continues to be a very popular community interest with an increase in youth
programs such as water polo and swim club programming. Additionally, the popularity of the warm-water
pool for all age and abilities has shown an increase coming out of the pandemic restrictions.
Financial Plan Page 203 Page 615 of 954
Operating Budget – General Fund Golf Course
Golf Course
Program Description
The Golf Course Program operates and maintains the Laguna Lake Golf Course as a 10-hole par three golf
course, Pro-Shop, and driving range.
Core Services & Objectives
Maintain and enhance the Laguna Lake Golf Course including equipment maintenance and
irrigation repair
Provide a comprehensive Pro-Shop operations and reliable customer service
Promote and provide equitable access for golf play and alternative golf related programming
Provide community-focused events to enhance the use of the facility
Identify environmental initiatives focused on creek preservation, water conservation, and long-
term sustainability
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $520,468 $479,798 $509,984 6% $528,044 4%
Contract Services $19,386 $21,713 $23,991 10% $24,173 1%
Other Operating Costs $292,008 $237,245 $272,236 15% $272,573 0%
Golf Course Total $831,862 $738,756 $806,211 9% $824,790 2%
Opportunities and Challenges
The Golf Course continues to operate out of a temporary pro-shop trailer due to the closure of the main
pro-shop due to flooding. Remediation and repairs are projected to continue into June 2023. Due to
antiquated infrastructure, on-going irrigation leaks monopolize staff time and take away from standard
course maintenance. With this season experiencing consistent weather events impacting operational days
for play and maintenance from January to March 2023, the Golf Course will be looking at alternative ways
to increase revenue at the golf course.
The Golf Course will look towards additional promotional opportunities within local outlets and outreach
to school sites (college and school district), fee increases, implementing a loyalty program, increasing the
current lesson output by contracting with new instructors, promoting the course for special events,
increasing tournaments, and reinstituting the night golf events after a three-year hiatus. The course is also
considering combining golf rounds with golf cart rentals at an increased fee.
Other Key Points
In January 2023, a new concessionaire began operation at the golf course, providing golfers and the
community on-site dining opportunities.
6This represents a $29,000 (29%) increase to Water Service budget, which accounts for the realistic cost of leaks
caused by aging infrastructure.
Table A-73:
6
Financial Plan Page 204 Page 616 of 954
Operating Budget
General Fund Public Works
PUBLIC WORKS
Mission Statement
Preserve and enhance city infrastructure for an accessible, safe,
and inclusive community experience.
About the Department
The City of San Luis Obispo’s Public Works Department accomplishes its mission in two primary ways. One
is by providing safe mobility options for residents and visitors so that all may enjoy the cultural,
recreational, economic, educational, and quality of life amenities in San Luis Obispo. The other is to build
and maintain the City’s assets and infrastructure to enhance community safety, health, and wellness.
None of the City’s assets are an end unto themselves but rather enable residents and visitors to experience
an enhanced quality of life. The Department’s Vision: ‘Inspiring you to have the best day you have ever
had,’ essentially means if we provide high quality mobility options and well-maintained infrastructure,
then users can experience the full benefit of living, visiting, and working in San Luis Obispo.
The Department’s twelve programs each have a critical and unique role in fulfilling the Department’s
mission. Most of the Department is funded by the General Fund, and two programs, Parking and Transit,
are Enterprise Funds, funded by users of those services.
Financial Plan Page 205 Page 617 of 954
Operating Budget
General Fund Public Works
The Department at a glance
1 Included in Utilities Section as this program is cross-departmental, but mainly managed in Utilities.
Staffing
62%
Contract
Services
12%
Other
Operating
Costs
26%
Chart A-75: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 CIP Project Eng $2,664,647 $2,717,592 $2,887,864 $3,002,118
2 Facilities Maintenance $1,359,287 $1,375,065 $1,534,669 $1,548,295
3 Fleet $1,395,775 $1,395,387 $1,453,372 $1,485,298
4 Parks Maintenance $3,552,669 $3,478,283 $4,126,238 $4,318,912
5 Public Works Admin $1,069,343 $1,089,021 $1,454,917 $1,527,733
6 Stormwater and Flood Control1 $1,115,930 $1,083,704 $1,195,293 $1,227,164
7 Streets Maintenance $1,766,497 $2,423,871 $2,349,855 $2,416,058
8 Swim Center Maintenance $601,262 $595,198 $673,110 $688,515
9 Traffic Signals and Lighting $598,015 $535,973 $596,347 $602,390
10 Transportation Planning & Eng $1,123,041 $995,326 $1,078,014 $1,121,828
11 Urban Forest Services $334,499 $455,180 $368,367 $390,066
12 Public Works Total $15,580,965 $16,144,599 $17,718,046 $18,328,375
Table A-74:
Financial Plan Page 206 Page 618 of 954
Public Works
Operating Budget
General Fund
Chart A-76: Department
Organizational Chart2
2 Does not include supplemental or contract positions.
Public Works
(73.84 FTE)
Administration
Public Works
Administration
(7.00 FTE)
Stormwater
(6.34 FTE)
Flood Control
(1.00 FTE)
Engineering &
Maintenance
Parks Maintenance
(12.00 FTE)
Swim Center
Maintenance
(1.00 FTE)
Urban Forest Services
(2.00 FTE)
Facilities
(5.00 FTE)
Street Maintenance
(12.00 FTE)
CIP Engineering
(15.00 FTE)
Transportation
Traffic Signals & Lighting
(2.00 FTE)
Fleet
(4.50 FTE)
Transportation Planning
& Engineering
(6.00 FTE)
Parking Program & Fund
(14.00 FTE)
Transit Program and Fund
(3.00 FTE)
Financial Plan Page 207 Page 619 of 954
Public Works
Operating Budget
Table A-77: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1 Contract Mowing
Services at Parks
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.
One-time $100,000 $100,000
2
City Hall
Temporary
Restroom
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.
Ongoing $12,000 $12,600
3
New Regular -
Urban Forester (1
FTE)
This new position would support the in-house Urban
Forest crew with emergency response, reactive
work orders, and young tree care.
Ongoing $96,690 $100,065
4
Utilities and
Janitorial Services
for New City
Buildings (HR and
1106 Walnut)
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.
Ongoing $89,125 $89,875
5
Exploration of a
Potential
Stormwater Utility
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.
One-time $10,000 $10,000
6
Annual MS4
permit fee -
SWRCB
Municipal Separate Stormwater Sewer System
(MS4) permits are regulatory driven and required by
the State Water Resource Control Board (SWRCB).
Previously not budget
Ongoing $18,000 $18,500
TOTAL $325,815 $331,040
Financial Plan Page 208 Page 620 of 954
Operating Budget
General Fund Public Works
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals
tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals
are in addition to ongoing community program services (listed in program sub-sections).
Strategic Goal(s)
Focus department’s attention to storm recovery, prioritizing repairs of storm
damage that will both repair the City’s storm conveyance systems to pre-storm
condition and maximize federal and state reimbursement of City funds. Continue
focusing on Emergency Preparedness.
Invest in critical infrastructure with the focus of delivering legacy projects to the
Community including the Cultural Arts District Parking Garage, the Mission Plaza
Concept Plan Implementation, Prado Road Creek Bridge, Prado Road Interchange
and the Public Safety Center replacement.
Provide core services to the Community with particular focus on Enhanced
Downtown Maintenance and providing maintenance services for recently
constructed development projects that are ready to be assumed into the City’s
inventory for maintenance. Continue to use Ask SLO as a tool to respond to
community needs.
Create a new division within the Public Works Department that will lead Parking,
Transit, and Active Transportation with the goal of creating a cohesive team that
will increase mobility within the City focusing on bridging gaps between transit,
active transportation, and parking programs. Implement objectives from the
Active Transportation Plan including trail, pedestrian, and bicycle improvements
and street enhancements to uphold traffic safety.
Support and prioritize employee development and growth through investing in the
time to train, develop, and onboard new and transitioning employees. Develop
an implementation plan for the Employee Engagement Survey feedback that was
received focusing on training and onboarding.
Financial Plan Page 209 Page 621 of 954
Operating Budget
General Fund Public Works
Performance Measures
Performance measures are designed to determine accountability, improve service quality,
allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and
objectives.
Objective Measure 2021-22 Actual 2022-23 Actual 2023-24 Target 2024-25
Target
Proactively enhances traffic safety by
providing a system of safe, reliable and
well-maintained roadways, sidewalks,
traffic signals and streetlights.
MCG: Climate Action
Strategic Goal: Enhance Safe & Efficient
Transportation (PW Strategic Plan)
Pavement Condition
Index 72 75 75 75
Bicycle network in
total miles (Class
I/II/III/IV)
12.1/29.3/
25/1.2
14.5/31.3/
25.3/1.
14.6/31.0/
25.1/2.8
14.6/28.6/
25.1/5.4
Street miles
maintained 134 134 135 137
Enhance the City’s Urban Forest and
maintains visually appealing public spaces.
MCG: Climate Action
Strategic Goal: Proactively Manage Assets
(PW Strategic Plan)
# of trees
maintained 12,9703 13,030 13,080 14,500
Total acreage of
park inventory 582 582 5844 5965
Provide high quality services to the
community through efficient and effective
delivery of capital improvement projects
and management of the City’s
infrastructure.
MCG: Economic Recovery
Strategic Goal: Connect with our
Community (PW Strategic Plan)
Total value of CIP
Managed $21M $28M $97M $53.6M
3 The Urban Forest Services Program recently completed an audit of the Urban Forest in the Streets and Parks setting.
The urban forest number of managed trees has been aligned with maintenance program scope of service. Many
trees in the City’s open space have been remov ed from the Urban Forest Services maintenance metrics as these
trees are maintained by the Parks and Recreation Departments Ranger Services Program.
4 The 2023-24 park acreage inventory includes the addition of North Broad Street Park and Parks A, B, and C in Avila
Ranch.
5 The 2024-25 park acreage total includes the anticipated completion of the community park within the Righetti
Ranch development.
Table A-78
Financial Plan Page 210 Page 622 of 954
Operating Budget Public Works Admin
General Fund Public Works
Public Works Administration
Program Description
The Public Works Administration Program helps plan and direct the twelve operating programs, the capital
improvement program, and provides department-wide administrative and fiscal support.
Core Services & Objectives
Provides leadership and strategic planning to enhance ongoing Department operations
Manages staff, fiscal and other resources to ensure efficient maintenance, inspection, operation,
and construction service delivery
Provides Department leadership, organization development, and fiscal support services
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $959,519 $1,044,634 $1,410,530 35% $1,483,345 5%
Contract Services $56,391 $1,500 $1,500 0% $1,500 0%
Other Operating Costs $53,434 $42,888 $42,888 0% $42,888 0%
Public Works Admin Total $1,069,343 $1,089,021 $1,454,917 34%
6
$1,527,733 5%
Major City Goal Contribution
In partnership with Utilities, establish an internal working group to determine feasibility of creating a
stormwater utility to fund stormwater operate as an enterprise fund.
Opportunities and Challenges
The department is excited about the potential opportunities that are available by hiring additional staff
members within the Capital Improvement Plan Engineering program to help support the City’s Major
Goals. The addition of the new Mobility Services division within the department will further assist in the
overall goals while aiming to meet or exceed community expectations. With this staffing opportunity
comes the challenge of management, onboarding, and proper training. Navigating these challenges
effectively will be a priority to ensure optimum success.
6 Increase as a result of multiple previously approved staffing changes, including adding a new Contract Coordinator
position and CIP Administrative Manager.
Table A-79:
Financial Plan Page 211 Page 623 of 954
Operating Budget Public Works Admin
General Fund Public Works
Current and future challenges include the overall impact that the storm recovery efforts have created
within the many programs of the public works department. These efforts were not anticipated or
budgeted, so the ramifications of such costly efforts are highly impactful. The multi-faceted challenges
created by congruent storms created unpresented workload efforts to keep the city functioning in the
safest capacity as possible. In addition to the immediate emergency response effort while the storms were
active the department will also have residual impact in restoring the overall damage.
Financial Plan Page 212 Page 624 of 954
Operating Budget Parks Maintenance
General Fund Public Works
Parks Maintenance
Program Description
The Park Maintenance Program maintains City parks and landscaped areas as well as oversees contract
services for janitorial maintenance of restrooms and park buildings and landscape maintenance of smaller
parks and medians.
Core Services & Objectives
Provides the community with safe park facilities
Partner with the Parks and Recreation Department to provide venues for recreational programs
and services
Provides maintenance of park and other landscaped areas
Provides special event support
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,430,452 $1,383,883 $1,615,386 17% $1,687,517 4%
Contract Services $655,468 $647,000 $857,000 32% $879,600 3%
Other Operating Costs $1,466,749 $1,447,400 $1,653,852 14% $1,751,795 6%
Parks Maintenance Total $3,552,669 $3,478,283 $4,126,238 19%7 $4,318,912 5%
Major City Goal Contribution
In partnership with Parks and Recreation, environmental clean-ups in City Parks and public spaces
associated with abandoned personal property and trash. (Housing & Homelessness, #3.7.b)
Opportunities and Challenges
The program continues to be inundated with vandalism and transient related issues within the parks,
which is resulting in reduced resources available to support other parks maintenance needs. During the
2023-24 fiscal year, the program will assume responsibility for an additional four parks with no increase
to staffing levels, which could result in a lower level of maintenance at all parks and daily playground
7The Parks Maintenance Program increased due to adding a beautification gardener and result of the compensation
adjustments and cost increases related to material costs and contract mowing services.
Table A-79:
Financial Plan Page 213 Page 625 of 954
Operating Budget Parks Maintenance
General Fund Public Works
safety inspection not being completed regularly. Additional contract funding was allocated to the
program, which is anticipated to be used to maintain the newly acquired facilities.
Like many programs, Parks Maintenance has been severely impacted by material cost escalation and
supply chain issues. An increased funding for play surfaces is expected to ease this issue if material cost
stabilizes. The recent addition of a Beautification Gardener has started to increase the aesthetics within
the downtown area, which has been well received by the community. With the addition of the
Beautification Gardener, the program supervisor now has 15 direct reports, which is not sustainable long
term. A solution to this staffing ratio will need to be addressed to give all levels of staff the proper
resources and to increase effectiveness.
Financial Plan Page 214 Page 626 of 954
Operating Budget Swim Center Maintenance
General Fund Public Works
Swim Center Maintenance
Program Description
The Swim Center Maintenance Program maintains the swimming/diving pool and the therapy pool
including all water treatment and mechanical equipment in compliance with Health Department
Standards. Additionally, this program oversees the two bathhouses and swim deck area. All of these
facilities are located at the pool complex located at Sinsheimer Park and referred to as the SLO Swim
Center.
Core Services & Objectives
Maintain the aquatic facilities in a clean, safe, and efficient manner
Provides skilled maintenance and specialized technical services
Operates the aquatic facilities in compliance with Health Department Regulatory requirement
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $171,777 $143,218 $153,817 7% $156,826 2%
Contract Services $9,902 $25,100 $22,100 -12%$22,100 0%
Other Operating Costs $419,583 $426,880 $497,193 16% $509,589 2%
Swim Center Maint Total $601,262 $595,198 $673,110 13% $688,515 2%
Opportunities and Challenges
The Swim Center Maintenance Program will be instrumental in assisting the City achieve its carbon
neutrality goals, because of large amount of natural gas currently used for pool and domestic hot water
heating. Program staff have worked with the Office of Sustainability in completing the Building
Decarbonization Plan and is ready to assist with implementation once funding is available. Utility cost
could escalate with the transition to electric water heating and this expenditure will need to be closely
monitored.
Table A-80
Financial Plan Page 215 Page 627 of 954
Operating Budget Urban Forest Services
General Fund Public Works
Urban Forest Services
Program Description
The Urban Forestry Program maintains the urban forest located in streets and park areas by pruning,
removing, replacing, and planting trees. The Program also provides staff liaison support to the Tree
Committee, enforcement of the tree regulations, and assist in tree related development review activities.
Core Services & Objectives
Provide and maintains a sustainable urban forest to increase neighborhood wellness, increase
carbon sequestration to mitigate impacts of climate change, and provides aesthetic and other
quality of life improvements to the community
Maintains the City’s inventory of publicly owned and maintained trees within streets and parks
Provides staff support for the Tree Committee
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $255,215 $356,005 $337,917 -5%$359,616 6%
Contract Services $56,037 $72,225 $3,500 -95%$3,500 0%
Other Operating Costs $23,246 $26,950 $26,950 0% $26,950 0%
Urban Forest Services Total $334,499 $455,180 $368,367 -19%$390,066 6%
Major City Goal Contributions
In partnership with Administration and Information Technology Department, staff will evaluate the Urban
Forest Program's future role in advancing sustainability goals and objectives and complete the Urban /
Community Forest Master Plan, comprehensive tree inventory update, database tracking system, pruning
and maintenance (CAP Natural Solutions 2.1) and will adjust maintenance activities and delivery to reflect
the Plan objectives.
Opportunities and Challenges
The Department worked collaboratively with Community Development and Natural Resources during the
last Financial Plan to conduct an organizational assessment and find the best department placement for
program responsibilities. This information was presented to Council and will be implemented during the
2023-25 Financial Plan. Due to funding constraints, a phased approach will be used with additional staffing
resources added in later Financial Plans. The City plans to plant 10,000 new trees by 2035 to assist in
achieving its ambitious carbon neutral goals. Doing so will place an additional workload on the Urban
Forestry Program and additional resources in the future will be essential to care for the young trees and
maintain the increase in tree inventory. Although the programs will be implemented in phases, it is
expected to increase the current level of maintenance within the Urban Forest and will be well received
by the community.
8 Urban Forestry contract services budget is now included within the Capital budget.
Table A-81:
8
Financial Plan Page 216 Page 628 of 954
Operating Budget Facilities
General Fund Public Works
Facilities
Program Description
The Facilities Maintenance Program provides interior and exterior maintenance services for City buildings,
except for the Utilities Treatment Plants and Pump Stations, Parking Structures, Bus Yard facility, Parks
Restrooms, Laguna Lake Golf Course, and City Adobes. The program oversees unplanned repairs to
existing building features such as roofs, ceilings, walls, floors, doors, windows, HVAC, plumbing, electrical
systems, Hayworth systems furniture, security and fire alarm systems. The program also oversees planned
and budgeted building maintenance minor capital projects that are not costly or complex enough to
require engineering oversight, as well as contract services for HVAC, janitorial services (where applicable),
applicable fire suppression, limited first aid kit service, elevator inspection, alarm monitoring and testing,
sprinkler system testing and certification, and pest control.
Core Services & Objectives
Maintain City buildings in a clean, safe, and efficient manner
Provides skilled maintenance and specialized technical services
Oversee contract maintenance services
Provides technical support and consultation services for building improvements
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $641,194 $590,030 $642,679 9% $669,783 4%
Contract Services $311,206 $283,000 $384,125 36% $360,475 -6%
Other Operating Costs $406,886 $502,035 $507,865 1% $518,037 2%
Facilities Maintenance Total $1,359,287 $1,375,065 $1,534,669 12% $1,548,295 1%
Opportunities and Challenges
The program currently has all positions filled; however, the impacts of one light duty assignment are
impacting the ability to complete the work in a timely manner and requires more prioritizing than usual.
With the purchase of an existing building on Walnut Street, the program will have increased workload,
which is expected to prolong the average time to complete work orders.
This program will play an integral role assisting the City to meet Carbon Neutrality goals. This will be
accomplished by facility improvements funded through capital projects and on-bill financing. Upon
competition of these projects, it is important to increase the programs future resources to account for
the additional workload required to maintain the complex mechanical systems within the buildings.
9 Increase due to added janitorial costs for new City buildings or leased spaces.
Table A-82:
9
Financial Plan Page 217 Page 629 of 954
Operating Budget Street & Sidewalk Maintenance
General Fund Public Works
Street and Sidewalk Maintenance
Program Description
The Street Maintenance Program maintains the paved portion of the City’s streets and manages the
sidewalk maintenance program. Staff within this program repair and reconstruct streets, as well as
sidewalks damaged by City owned street trees. They maintain street furnishings, signs, and pavement
markings, provides regular downtown trash pickup, and oversees sidewalk scrubbing, and provides weekly
traffic control for the Farmer’s Market.
Core Services & Objectives
Provides the community safe public transportation infrastructure
Maintains existing roadway infrastructure including pavement, striping and signs
Provides traffic control services for Farmer’s Market
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,172,237 $1,498,671 $1,416,520 -5%$1,474,181 4%
Contract Services $243,951 $343,600 $343,600 0% $343,600 0%
Other Operating Costs $350,309 $581,600 $589,735 1% $598,277 1%
Streets Maint Total $1,766,497 $2,423,871 $2,349,855 -3%$2,416,058 3%
Major City Goal Contributions
Reconstruct and resurface streets; shared-use path maintenance; traffic signs and striping maintenance;
additional street sweeping for sidewalks, bike lanes and downtown parklets; and sidewalk repairs and
ADA curb ramp installations. (Climate Action, 4.4: e., f., g.)
Opportunities and Challenges
The roadway infrastructure the Streets and Sidewalk Maintenance Program maintains will continue to
increase during the next several years due to the construction of multiple new residential developments
and the addition of more protected pedestrian and bicycle improvements. The approval of additional
Maintenance Worker positions in Fiscal Year 2022-23 has allowed the program to increase the level of
cleaning and maintenance in the downtown. The addition of these positions has made overall
management of the program challenging due to the number of direct reports and work programs the
supervisor manages. A long-term solution will need to be implemented to address this and provide staff
the necessary support need at all levels and to promote efficiency.
The additional street sweeping contract funding has been well received by the community in keeping
arterial and new residential streets clean, as well as protected bike and pedestrian improvements.
Additional funding will be needed to address cleaning of the North Chorro Greenway and any other future
improvements.
Table A-83:
Financial Plan Page 218 Page 630 of 954
Operating Budget Traffic Signals & Lighting
General Fund Public Works
Traffic Signals & Lighting
Program Description
The Signal and Light Maintenance Program operates and maintains traffic signals and streetlights on City
streets, and the installing, operating, and monitoring of the City’s traffic management and detection
systems.
Core Services & Objectives
Provides safe and efficient traffic flow for all modes of travel through signalized intersections.
Provides appropriate lighting for streets and neighborhoods.
Maintains traffic signal operations and maintenance and streetlight operations and maintenance.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $271,056 $256,709 $283,930 11% $289,973 2%
Contract Services $71,902 $15,000 $15,000 0% $15,000 0%
Other Operating Costs $255,057 $264,264 $297,417 13% $297,417 0%
Signals and Lighting Total $598,015 $535,973 $596,347 11% $602,390 1%
Opportunities and Challenges
With ongoing installation of new streetlights, off-street path lights, downtown decorative “zigzag”
lighting, and new traffic signals throughout the City, the Traffic Signal and Streetlight Program will need
to continually evaluate staffing resources and operating budgets to ensure that there are sufficient funds
to maintain the traffic signal and streetlight infrastructure in a state of good repair. Over the past several
years, there has been a measurable uptick with failures of older traffic signal equipment and increases in
vehicle collisions with traffic signal and streetlight poles, which has elevated maintenance costs beyond
available budgets. This has caused both budget overruns and undesirable deferrals of needed spare
signal/streetlight equipment purchases.
With one of the City’s existing Traffic Signal/Streetlight Technicians nearing eligible age for retirement
within the next five years, there will likely be a need to recruit a third full-time technician for a temporary
period looking ahead towards the FY2025-27 Financial Plan to ensure that there is adequate staffing
overlap and opportunity for training and transition planning.
The increasing availability of solar street and path lighting products presents a significant opportunity for
the City to install and repair lighting infrastructure without the additional costs and delays often
associated with coordinating hard-wired electrical installations with PG&E. Continued experimentation
with solar lighting options as part of the previously funded Bob Jones Trail & Railroad Safety Trail Solar
Lighting Project as well as continued funding of the New Streetlight Annual Asset Maintenance Project
funding requests will allow for additional flexibility and efficiencies with maintaining the City’s streetlight
infrastructure.
Table A-84:
Financial Plan Page 219 Page 631 of 954
Operating Budget Fleet
General Fund Public Works
Fleet
Program Description
The Fleet Maintenance Program maintains and repairs all City vehicles and construction equipment except
those used in the Transit Program and Fire Department.
Core Services & Objectives
Provides a safe and reliable City fleet balancing maintenance and capital outlay costs
Provides comprehensive support for Police fleet asset maintenance and repair
Responsible for safeguarding and disposal of hazardous material stored at the Corporation Yard
Provides specialized maintenance and fabrication services
Completes vehicle procurement and disposal
Completes reporting for State and Federal regulatory programs
Completes fuel purchasing
Maintains fuel dispensing station and vehicle wash facility
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $643,176 $649,287 $536,902 -17%$557,198 4%
Contract Services $112,451 $147,800 $147,800 0% $147,800 0%
Other Operating Costs $640,149 $598,300 $768,670 28% $780,300 2%
Fleet Total $1,395,775 $1,395,387 $1,453,372 4% $1,485,298 2%
Major City Goal Contributions
In partnership with Administration and Information Technology Department, install electric vehicle
chargers to support the transition to all-electric fleet vehicles.
Opportunities and Challenges
The Fleet program will be essential in the City being successful in achieving carbon neutral goals. This will
be accomplished though reducing the number of vehicles and equipment that produce Greenhouse Gas
(GHG) emissions. Fleet replacement deferrals continue to be a tool to assist the City in addressing the
unanticipated cost of storm repair work.
The amount of staffing will decrease by one mechanic and an intern position during this Financial Plan,
which is expected to increase the duration of time required to complete fleet repairs and could negatively
impact other City operations.
10 Increase due to increased fuel prices.
Table A-85:
10
11
11 One-time funded contract position from the 2021-23 Financial Plan removed from budget.
Financial Plan Page 220 Page 632 of 954
Operating Budget CIP Engineering
General Fund Public Works
Capital Improvement Plan Engineering
Program Description
The CIP Project Engineering Program oversees design and construction of infrastructure projects in the
City’s Capital Improvement Plan (CIP) and provides inspection services for public infrastructure
improvements built by the private sector.
Core Services & Objectives
Deliver the City’s capital construction program in a timely and cost-effective manner
Inspect private development to meet community needs and engineering standards
CIP project design
CIP project construction management
CIP administration
Maintain current City Engineering Specifications and Standards
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $2,505,756 $2,572,191 $2,759,463 7% $2,873,717 4%
Contract Services $58,484 $24,500 $24,500 0% $24,500 0%
Other Operating Costs $100,407 $120,901 $103,901 -14%$103,901 0%
CIP Project Eng Total $2,664,647 $2,717,592 $2,887,864 6% $3,002,118 4%
Major City Goal Contributions
In partnership with Utilities, ensure the business community is updated and aware of major city projects
(CIP and others) that will impact their operations. Coordinate with businesses adjusting working hours
and construction impacts to reduce impacts.
Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council
Direction; construct the new Cultural Arts District Parking Structure in coordination with SLO REP theatre;
and install pedestrian crossing safety improvements with installation of a Pedestrian Hybrid Beacon at the
South and King intersection.
Investing in critical infrastructure: The City will invest in critical infrastructure based on the approved
2021-23 CIP and proposed 2023-25 CIP or as otherwise directed by the City Council. Projects that 1)
facilitate economic recovery, 2) enhance safety, resilience, fire prevention, 3) address past commitments
(previously budget, approved planning documents), 4) are partnership projects with a significant portion
of the cost covered by private development, 5) address existing core infrastructure maintenance needs
Table A-85:
Financial Plan Page 221 Page 633 of 954
Operating Budget CIP Engineering
General Fund Public Works
and 6) provide positive impact towards climate change goals and/or Diversity Equity and Inclusions needs
will be prioritized for inclusion and Council’s consideration in the 2023-25 CIP.
Complete various CIP projects such as New Bob Jones Trail & Railroad Safety Trail Solar Path Lighting and
Mid-Higuera Bypass flood risk reduction project.
Opportunities and Challenges
With the passage of Measure G 2020 the funding provided to implement Capital Improvement Plan
projects has increased. However, the CIP Engineering program continues to navigate economic conditions
which have proven challenging on resource availability for capital projects. Cost escalation and supply
chain delays have impacted the City’s ability to deliver capital projects within budget and within estimated
timelines. On top of that, the City is responding to the long-term impacts of the winter storms and rainfall
which has had extreme impacts on the City’s infrastructure system.
The Capital Improvement Plan Engineering program has worked to scale its staffing capacity related to
the workload anticipated over the next financial plan. The program has established new positions within
the program as a result of the Management Partners study findings and recommendations and continues
to recruit for vacant positions. Major work efforts of the program in the coming years include the ongoing
design and construction of capital projects including the groundbreaking of the Cultural Arts District
Parking Structure, Electric Vehicle (EV) charging infrastructure, street reconstruction and resurfacing,
responding, and repairing storm drain infrastructure, and continuing to address citywide infrastructure
needs. The FY 2023-25 Capital Improvement Plan allocates over $180 million of funding across the City.
Financial Plan Page 222 Page 634 of 954
Operating Budget Transportation Planning & Eng
General Fund Public Works
Transportation Planning & Engineering
Program Description
The Transportation Planning and Engineering Program manages analysis, planning, operations, and design
of the City's multimodal circulation systems.
Core Services & Objectives
Enhance accessible regional transit, bicycle, and pedestrian mobility
Create safe and accessible walking and bicycling opportunities
Provide infrastructure supporting housing and reducing Vehicle Miles Traveled (VMT)
Support emerging transportation trends and technologies to transition towards sustainability
Completes Transportation Planning and Engineering Services in compliance with regulatory
requirements
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,023,843 $925,269 $1,007,957 9% $1,051,771 4%
Contract Services $56,141 $15,000 $15,000 0% $15,000 0%
Other Operating Costs $43,057 $55,057 $55,057 0% $55,057 0%
Program Total $1,123,041 $995,326 $1,078,014 8% $1,121,828 4%
Major City Goal Contributions
Publish biennial mode split progress report, consistent with performance monitoring
recommendations as called for in the Active Transportation Plan and CAP Connected
Communities task 1.1. (Climate Action, 4.4.a)
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.
Active Transportation Plan (ATP) Implementation: Implement infrastructure
improvements and programs specifically identified in the City's Active Transportation Plan
to improve access, mobility and safety for walking and bicycling citywide. Actions support
the CAP Connected Communities task 2.1, ATP. Specific projects and programs within the
current work program include:
ATP Tier 1 Network – Complete final design and construction of the Higuera
Complete Street project
ATP Tier 1 Network – Complete construction of North Chorro Greenway project.
Table A-86:
Financial Plan Page 223 Page 635 of 954
Operating Budget Transportation Planning & Eng
General Fund Public Works
ATP Tier 1 Network – Complete design and construction of new signalized
pedestrian/bicycle crossing at the intersection of South St. & King Ct.
ATP Tier 1 Network – Continue design of active transportation and safety
improvements for Foothill Boulevard corridor, with goal to advance project to
construction in FY2025-27.
ATP Tier 1 Network – Complete final design and right-of-way acquisition for new
roundabout at the intersection of California Blvd. & Taft St.
ATP Tier 1 Network – Implement complete street elements as part of 2023 and
2024 paving projects as guided by the ATP and Traffic Safety/Vision Zero reports.
ATP Tier 1 Network – Initiate design and environmental review for a project to
complete the gap in the Railroad Safety Trail in the Orcutt Area between Tiburon
and Orcutt Road, including replacement of narrow Bullock Lane culvert and
pedestrian/bicycle crossing improvement at Orcutt/UPRR railroad crossing.
ATP Tier 1 Network – Complete design and initiate construction of pedestrian
safety improvements at the UPRR railroad crossing near California Blvd./Foothill
Blvd.
Construct Minor Bicycle and Pedestrian Access & Safety Improvements
Support City Office of Sustainability staff, in partnership with Cal Poly, to continue
exploring feasibility of future bikeshare program.
Construct sidewalk repairs and new ADA curb ramps to improve access and safety for
pedestrians, particularly those with mobility challenges. (Climate Action, 4.4.f)
Vision Zero – Transform Traffic Safety Report to Vision Zero Action Plan, with increased
focus on implementation of traffic safety projects that prevent, and programs focused on
City’s high crash/injury network and protecting vulnerable road users. (Climate Action,
4.4.g)
Continue installation of new streetlights throughout the city and complete installation of
new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar options
where feasible, to improve safety for active transportation users. (Climate Action, 4.4.k)
Continue to support CIP Engineering Division with advancing Prado Road Creek Bridge
Replacement & S. Higuera/Prado Road intersection reconstruction, adding protected
bicycle lanes, sidewalks and a bicycle protected intersection as recommended in the
Active Transportation Plan. (Climate Action, 4.4.l)
Continue to support CIP Engineering Division in advancing construction of the Prado Road
Interchange project, proving more efficient connectivity for motor vehicles and transit
service (reducing VMT), and providing physically separated facilities for bicycles and
pedestrians as recommended in the Active Transportation Plan. (Climate Action, 4.4.m)
Continue Active Transportation Education and Outreach to encourage safe behaviors for
all road users and to encourage interest and use of active transportation modes. (Climate
Action, 4.4.n)
Continue to evaluate feasibility of potential City VMT Mitigation Program, providing a
programmatic mechanism to reduce VMT and GHG production of new development
projects within the city. (Climate Action, 4.4.o)
Financial Plan Page 224 Page 636 of 954
Operating Budget Transportation Planning & Eng
General Fund Public Works
Continue advancing the electrification of the SLO Transit vehicle fleet, including
electrification of buses and bus charging infrastructure. (Climate Action, 4.4.p)
Replace SLO Transit bus shelters to maintain a quality environment for new and future
transit users. (Climate Action, 4.4.y)
Opportunities and Challenges
With the passage of Measure G 2020, the funding provided to implement the sustainable transportation
projects within the Capital Improvement Plan has increased. Staff has also experienced continued success
with leveraging regional and state grant opportunities for active transportation funding. In addition, the
likely continuation of a very active private development market within the city will also continue to
increase the level of responsibilities required by the Transportation Planning and Engineering program,
which is heavily involved in development entitlement review, CEQA technical studies, design, and
construction review of new development-driven transportation infrastructure, as well as administration
of the Transportation Impact Fee program and developer reimbursement agreements. Considering the
combination of increased capital project delivery responsibilities, development-related tasks, and ongoing
day-to-day operations and programs (traffic data collection, field studies, signing/striping maintenance,
resident requests, maintaining speed limits, etc.), the Transportation Planning and Engineering program
will continue to carry a significant workload, which could affect timely delivery of priority projects and
programs.
Consultant services operating budget has been retained to help assist City staff with minor tasks, where
feasible, the team is requesting ongoing SOBC to support funding for two part-time transportation interns.
Financial Plan Page 225 Page 637 of 954
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Financial Plan Page 226 Page 638 of 954
Operating Budget Fire
FIRE
Mission Statement
To enhance and protect the lives, environment, and property of
our community and its visitors.
About the Department
In addition to providing exceptional and compassionate emergency response, the Fire Department
embraces comprehensive fire prevention and education strategies that include fire and life safety
inspections, plan review services, wildland fuels management, fire/arson investigation, fire safety and
public safety education, and City emergency management. The Fire Department has automatic and
mutual aid agreements with surrounding departments, California Office of Emergency Services, and the
Los Padres National Forest. With the values of Service, Loyalty, Ownership, Family, Integrity, Respect and
Excellence the Department’s vision is to be a progressive organization that leads the community in public
safety and preparedness demonstrated through an unwavering commitment to the protection of lives,
property, and our environment. The service we provide will be of the highest quality recognized against
local, state, and federal standards.
Financial Plan Page 227 Page 639 of 954
Operating Budget Fire
The Department at a glance
Staffing
93%
Contract
Services
2%
Other Operating Costs
5%
Chart A-88: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Emergency Management $97,605 $180,217 $195,444 $204,891
Emergency Response $13,924,054 $11,419,286 $11,826,682 $12,084,850
Fire Admin $1,261,650 $1,057,173 $1,173,220 $1,220,274
Fire Apparatus Services $502,880 $466,131 $489,400 $496,515
Fire Station Facility Support $40,691 $41,675 $43,525 $43,525
Hazard Prevention $965,976 $915,290 $1,035,824 $1,064,736
Mobile Crisis Unit $43,085 $314,190 $320,417 $326,523
Recruit Academy $94,684 $0 $75,600 $0
Training Services $143,900 $121,150 $113,448 $113,448
Fire Total $17,074,525 $14,515,112 $15,273,559 $15,554,762
Table A-87:
Financial Plan Page 228 Page 640 of 954
Operating Budget Fire
Chart A-89: Department Organizational Chart1
1 Does not include contract or supplemental positions
Fire (60.5)
Emergency
Management (1
FTE)
Fire Administration
(4 FTE)
Emergency
Response
Emergency
Response (46 FTE)
Fire Apparatus
Services (2 FTE)
Mobile Crisis Unit
(1 FTE)
Hazard Prevention
(6.5 FTE)
Financial Plan Page 229 Page 641 of 954
Operating Budget Fire
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals
tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals
are in addition to ongoing community program services (listed in program sub-sections).
Strategic Goal(s)
In coordination with Public Works and Human Resources, continue to enhance the
department’s diversity, equity, and inclusion through improvements to fire
station facilities, firefighter recruitment and training.
In coordination with the Office of Sustainability, continue to reduce the
department’s carbon footprint to support Climate Action through best practices
and thoughtful replacement of department apparatus resources.
In coordination with police expand the Mobile Crisis Unit hours and service
through outside funding opportunities and partner agencies.
Continue community preparedness efforts for disasters through development of
disaster plans and monitoring creek maintenance and wildfire protection plans.
Continue the implementation of the five strategic directions identified in the
Department’s Annual Operational Plan as part of the 5-Year Strategic Plan by
connecting with our community, continuously evaluate programs and service
delivery, analyze relevant data to inform decision making, improve organizational
culture, sustainability, and health, and support fiscal sustainability in department
operation.
Financial Plan Page 230 Page 642 of 954
Operating Budget Fire
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
2022-23
Actual
2023-24
Target
2024-25
Target
Deliver Timely Emergency
Response to ensure rapid
care and hazard mitigation.
Strategic Goal: Other
Department Objectives
Meet the Total Response Time (TRT)
goal
of 7 minutes or less to 90% of all
lights-and-siren emergencies in the
City as defined by the Department’s
Master Plan. TRT Includes Call
Processing Time, Turnout Time, and
Travel Time.
8:44 8:48 7:00 7:00
Meet the Call Processing Time goal
of 1 minute or less to 90% of all
lights-and-siren emergencies in the
City as part of TRT.
1:37 1:35 1:00 1:00
Meet the Turnout Time goal
of 2 minutes or less to 90% of all
lights-and-siren emergencies in the
City as part of TRT.
3:00 2:26 2:00 2:00
5:34 5:51 4:00 4:00
Provide timely service to
the development
community.
Strategic Goal: Housing
% of Fire Department
Development Review
activities completed within
published cycle times.
61% 67% 80% 80%
Table A-90:
Financial Plan Page 231 Page 643 of 954
Operating Budget Fire Administration
General Fund Fire Department
Fire Administration
Program Description
The Fire Administration program provides strategic leadership to the organization through planning,
directing, and evaluating all Fire Department programs and their activities.
Core Services & Objectives
Provide responsive, effective, and efficient fire department emergency service programs
Develop well planned, long-term sustainability focus for fire department personnel, service,
facilities, equipment, and organization
Department Administration and Leadership
Public Information and support services
Human resource recruitment, testing and management
Fiscal and contract management
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,070,900 $844,011 $919,418 9% $964,507 5%
Contract Services $15,801 $5,550 $6,600 19% $7,400 12%
Other Operating Costs $174,949 $207,612 $247,202 19% $248,367 0%
Fire Admin Total $1,261,650 $1,057,173 $1,173,220 11% $1,220,274 4%
Major City Goal Contributions
The fire department implemented a new fire intern program in support the City’s Diversity, Equity, and
Inclusion Major City Goal. The intern program seeks young individuals in the community that do not
traditionally seek the fire service out as a career. The department has a strong history of hiring previous
interns for full time positions in the department and staff will continue to use this as a recruitment tool
to improve diversity within the department's ranks.
2 Increase due to promotional exam cost increases
3 Increase due to software budget moved from Prevention as well as commodity price increases
Table A-91:
2
3
Financial Plan Page 232 Page 644 of 954
Operating Budget Emergency Response
General Fund Fire Department
Emergency Response
Program Description
The Emergency Response Program is responsible for protecting life, the environment, and property by
responding to a wide variety of all-risk emergencies, including, but not limited to: medical emergencies,
structure fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents, flooding, Urban
Search and Rescue, Open Space Rescue and a comprehensive Advanced Life Support medical program.
Core Services & Objectives
Deliver Timely Response
Provide exceptional Emergency Medical Services (EMS) including Advanced Life Support
Provide effective weight of response personnel for initial attack on all types of fires
Provide effective incident response to protect life and limit environmental damage caused by
release of hazardous materials
Minimize property damage through quick and efficient incident mitigation
Provide exceptional fire protection efforts to limit the cause and spread of fire
Provide modern technical rescue such as vehicle extrication and care of victims trapped in
wrecked vehicles, collapsed buildings, swift water rescues, trench rescue and trail/
cliffside/open space
Provide assistance to communities outside of San Luis Obispo as part of the state’s Mutual
Aid system
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $13,760,541 $11,267,518 $11,663,092 4% $11,921,260 2%
Contract Services $14,237 $16,175 $17,666 9% $17,666 0%
Other Operating Costs $149,276 $135,593 $145,924 8% $145,924 0%
Emergency Response
Total $13,924,054 $11,419,286 $11,826,682 4% $12,084,850 2%
Opportunities and Challenges
The department has requested a significant operating budget change in reaction to the increased cost of
equipment and personal protection equipment because of inflation. The requested funding will allow the
department to maintain or replace equipment necessary for all types of emergencies and the response to
each emergency.
Table A-92:
Financial Plan Page 233 Page 645 of 954
Operating Budget Emergency Response
General Fund Fire Department
Contributions to Major City Goal Objectives
Emergency Response is a fundamental component in providing a safe and resilient environment for the
community and our visitors. Compassionate and competent personnel provide rapid and effective care
anyone in need within our response areas. Emergency Response also informs prevention and education
activities, a fundamental component of a safe and resilient community.
Financial Plan Page 234 Page 646 of 954
Operating Budget Hazard Prevention
General Fund Fire Department
Hazard Prevention
Program Description
The Hazard Prevention Program prevents injury and loss of life, property and the environment damaged
by fire, explosion, or exposure to hazardous materials.
Core Services & Objectives:
Reduce and/or eliminate fire hazards and investigate fires in buildings, properties and equipment
through plan review and safety inspection services.
Participate in the County Certified Unified Program Agency (CUPA) program to track, inspect, and
increase safety related to hazardous materials.
Expand public awareness about the dangers of fire and hazardous materials.
Conduct thorough Fire and Life safety inspections and abatement.
Conduct Fire investigation cause and origin determination, support SLOPD for Arson
Investigations.
Conduct Hazardous material inspection and abatement.
Provide prompt building plan review and construction inspections.
Ensure proper Hazardous waste removal and disposal.
Provide modern Fire Prevention Education.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $879,900 $844,948 $976,897 16% $1,005,809 3%
Contract Services $19,324 $1,500 $1,500 0% $1,500 0%
Other Operating Costs $66,752 $68,842 $57,427 -17%$57,427 0%
Hazard Prevention Total $965,976 $915,290 $1,035,824 13% $1,064,736 3%
Contributions to Major City Goal Objectives
Hazard Prevention supports the planning and building throughout the city by working with City partners
and stakeholders for compliance with Fire and Life safety requirements in the built environment. A
streamlined and efficient planning and permitting process is an essential contribution to the City’s
business community.
4Fire Marshal now 100% budgeted to Fire Department, was previously split with CDD due to the position also filling
the role of Chief Building Official
5 Software budget being used by prevention moved to Fire Admin istration
Table A-93:
4
5
Financial Plan Page 235 Page 647 of 954
Operating Budget Training Services
General Fund Fire Department
Training Services
Program Description
The Fire Training Program schedules, coordinates, and documents both in-house and outside training and
certification for fire department staff. The program also works to maintain and improve the health fitness
of fire department employees. The overall program goal is to provide and support highly qualified, well
trained, safe, healthy, and fit employees.
Core Services & Objectives
Provide and support highly qualified, well-trained employees to maintain safety, good health, and
fitness among fire department staff.
Provide high quality and modern in-service training delivery on All-Risk incident topics.
Provide and support effective training in Fire Prevention responsibilities.
Support external training opportunities for State Fire and CICCS Training Certifications.
Continue to improve on the functional fitness injury reduction program.
Provide required safety training to all employees including after action reporting.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $53,010 $0 $0 0% $0 0%
Contract Services $44,480 $48,730 $49,964 3% $49,964 0%
Other Operating Costs $46,410 $72,420 $63,484 -12%$63,484 0%
Training Services Total $143,900 $121,150 $113,448 -6%$113,448 0%
Opportunities and Challenges
The department continues to face staffing challenges due to retirements and regular turnover. As
vacancies are filled, the department faces the new challenge of a young, less experienced staff requiring
increased training hours to continue to fill advancement opportunities in the job series. The department
will attempt to hold as many trainings in house and on site as possible to reduce costs of overtime and
travel.
6 The Safety and Training Captain is budgeted in the Emergency Response cost center.
Table A-94:
6
Financial Plan Page 236 Page 648 of 954
Operating Budget Recruit Academy
General Fund Fire Department
Recruit Academy
Program Description
The Recruit Academy Program is responsible for coordinating and completing the training of new hire
firefighters. Traditionally, the Fire Department conducts recruitment and hiring every other year based
on staffing needs. New recruits are required to complete the ten-week academy hosted by the Fire
Department upon hire, ensuring each new fire fighter meets the NFPA 1001 standard for the professional
qualifications for firefighter.
Core Services & Objectives
Conduct ten-week task-based recruit-training for all new hire firefighters
Outfit all firefighter recruits with proper personal protective equipment (PPE)
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $14,966 $0 $9,000 100% $0 -100%
Other Operating Costs $79,718 $0 $66,600 100% $0 -100%
Recruit Academy Total $94,684 $0 $75,600 100% $0 -100%
7 This program is only budgeted every other year. Now that the City has a dedicated Training Captain, some
operational costs of gone down since FY 2021-22.
Table A-95:
7
Financial Plan Page 237 Page 649 of 954
Operating Budget Fire Apparatus Services
General Fund Fire Department
Fire Apparatus Services
Program Description
The Fire Apparatus Program performs fire apparatus services, maintenance, and repair of light and heavy
fire apparatus and vehicles.
Core Services & Objectives
Perform all required maintenance on light and heavy fire vehicle apparatus and vehicles and
related equipment
Maintain all apparatus and equipment in sound working order
Maintain all fire station generators in sound working order
Oversee annual inspections of both ground and aerial ladders
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $302,091 $259,558 $270,203 4% $277,318 3%
Contract Services $20,148 $27,235 $28,035 3% $28,035 0%
Other Operating Costs $180,640 $179,338 $191,162 7% $191,162 0%
Fire Apparatus Services
Total $502,880 $466,131 $489,400 5% $496,515 1%
Table A-96:
Financial Plan Page 238 Page 650 of 954
Operating Budget Fire Station Facilities Support
General Fund Fire Department
Fire Station Facilities Support
Program Description
Fire Stations Facilities Support manages and maintains the City’s four fire station facilities, their grounds
and miscellaneous related equipment, appliances, and furnishings. Fire Station support is maintained
through partnerships with City Facilities Management.
Core Services & Objectives
Maintain safe, functional, attractive, and energy efficient fire stations.
Work closely with the Public Works Department to facilitate building repairs and landscape
maintenance.
Minor facilities maintenance
Public Access Automatic External Defibrillators (AED) maintenance
Fire Mapping Program
Fire Radio System and Equipment
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $16,734 $12,800 $13,800 8% $13,800 0%
Other Operating Costs $23,957 $28,875 $29,725 3% $29,725 0%
Fire Station Facility Support
Total $40,691 $41,675 $43,525 4% $43,525 0%
Table A-99:
Financial Plan Page 239 Page 651 of 954
Operating Budget Emergency Management
General Fund Fire Department
Emergency Management
Program Description
The Emergency Management Program has three primary areas of focus: 1) through planning and training,
ensures that City personnel can provide appropriate response and recovery services following a major
emergency or disaster such as earthquake, flood, nuclear power accident, hazardous material spill,
wildland fire and pandemics: 2) provides information and education on community and individual disaster
readiness, and fire safety to the general public: 3) oversees hazard mitigation strategies and projects to
improve the city’s ability to limit the impacts of a major disaster and improve the resiliency of the
community.
Core Services & Objectives
Provide disaster response training to City employees.
Maintain up-to-date hazard mitigation plan, emergency operations plan and community wildfire
protection plan.
Provide outreach and education to residents and businesses in disaster and emergency readiness.
Leads city response and recovery efforts during and after large scale emergencies and disaster.
Ensures the City Emergency Operations Center (EOC) is in a readiness state.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $23,853 $146,402 $174,414 19% $183,861 5%
Contract Services $59,696 $30,000 $0 -100%$0
Other Operating Costs $14,056 $3,815 $21,030 451% $21,030 0%
Emergency
Management Total $97,605 $180,217 $195,444 8% $204,891 5%
Contributions to Major City Goal Objectives
Emergency management will continue to align with the City’s Major City Goal of Climate Action by
increasing community resilience to major disasters and increasing preparedness as well as provide
recovery resources.
8 FY 2022-23 includes some one-time funding for the newly established program. Some budget was eliminated, and
some was moved from "Contract Services" to “Other Operating Costs”
Table A-100:
8
Financial Plan Page 240 Page 652 of 954
Operating Budget Mobile Crisis Support
General Fund Fire Department
Mobile Crisis Unit
Program Description
Mobile Crisis Support is a pilot program for the Fire Department formally launched in July 2022. The pilot
program establishes a Mobile Crisis Unit staffed with a social worker who is paired with Firefighter/EMT
and are dispatched to non-emergency calls for service involving unhoused residents and community
members in crisis.
Core Services & Objectives
Provide crisis support to all community residents.
Improve unhoused resident access to needed social services.
Reduce law enforcement and paramedic response in non-emergency situations when possible.
Improved patient care; reduced emergency room transports.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $24,263 $109,204 $139,392 28% $145,498 4%
Contract Services $4,593 $125,672 $126,672 1% $126,672 0%
Other Operating Costs $14,230 $79,314 $54,353 -31%$54,353 0%
Mobile Crisis Unit Total $43,085 $314,190 $320,417 2% $326,523 2%
Contributions to Major City Goal Objectives
In partnership with the community development and police departments, the fire department created
the Mobile Crisis Unit. The establishment of this program is aligned with the City’s Major City Goal of
Housing and Homelessness and is intended to provide needed support to the unhoused residents or any
community member of San Luis Obispo in crisis while also reducing the strain on emergency services staff
within the Fire and Police Departments.
9 Reclassified a position from EMT to Firefighter/EMT.
10 One-time start-up costs from the 2021-23 Financial Plan were removed.
Table A-101:
9
10
Financial Plan Page 241 Page 653 of 954
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Financial Plan Page 242 Page 654 of 954
Operating Budget
General Fund
POLICE
Mission Statement
Maintaining a safe city by working in partnership with the
community to protect life and property, prevent and reduce
crime, and improve the quality of life in our neighborhoods
while preserving the rights of all through a commitment to
Service, Pride, and Integrity.
About the Department
The Police Department consists of two operating bureaus: Operations and Administration. The
Operations Bureau consists of patrol services, traffic safety, and neighb orhood services. The
Administrative Services Bureau includes administrative services, investigative division,
communications, and records units.
Financial Plan Page 243 Page 655 of 954
Operating Budget
General Fund
The Department at a glance
Staffing
94%
Contract Services
3%
Other Operating Costs
3%
Chart A-103: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Investigations $3,621,224 $3,521,262 $3,057,865 $3,105,337
Neighborhood Services $284,409 $282,674 $302,867 $309,929
Patrol $12,616,286 $10,684,397 $11,914,934 $12,245,831
Police Admin $1,880,726 $2,103,633 $2,300,494 $2,357,587
Police Support Services $3,315,494 $3,198,032 $3,596,650 $3,664,786
Traffic Safety $863,845 $1,076,266 $913,242 $923,603
Police Total $22,581,983 $20,866,264 $22,086,053 $22,607,072
Table A-102:
Financial Plan Page 244 Page 656 of 954
Operating Budget
General Fund
Police Department Budget Breakdown
The City of San Luis Obispo’s Police Department provides more than the traditional public safety services
associated with sworn patrol officers. The graphic below illustrates these services:
Non-
Traditional
Police
Operations
Homelessness
Services
-Community Action
Team
Neighborhood
Services
-Neighborhood
Services Manager
-SNAP
Downtown Services
-Community Service
Officers
-Downtown Bike
Team
Other Support
Services
-Crime Analyst
-Technical Forensic
Evidence Technician
School Resource
Officer
-Position is paid for by
the San Luis Coastal
Unified School District
Pro-Active Outreach
-Special Enforcement
Team
-Technical Forensic
Evidence
27%
Civilian
73%
Sworn
Chart A-104: FY 23-24 Staffing Cost by Type
$4,042,645
$18,141,318
Staffing & Programs
Chart A-105: FY 23-24 Police
Budget: $22,183,963
Financial Plan Page 245 Page 657 of 954
Operating Budget
General Fund
Chart A-106: Department Organizational Chart1
1 Does not include supplemental or contract employees.
Police
(95 FTE)
Administration
Police
Administration
(7 FTE)
Support Services
(20 FTE)
Operations
Patrol
(47 FTE)
Investigations
(16 FTE)
Neighborhood
Services
(1 FTE)
Traffic Safety
(4 FTE)
Financial Plan Page 246 Page 658 of 954
Operating Budget
General Fund
Table A-108: Operating
Budget Changes SOBC Description Type 2023-24 2024-25
1 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.
Ongoing $15,000 $15,000
2
Increased Cost for
Animal Services
Operations
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.
Ongoing $50,000 $50,000
3 Investigative
Software
One of the investigative tools used by the
department allows the detectives to obtain
information from various types of smart phones.
The department has been using this tool over the
past year which had been paid for by another entity.
The outside entity will no longer be funding this
software and the department is requesting ongoing
funds to continue the use of this robust and
extremely beneficial tool.
Ongoing $11,000 $11,000
4
Reclassification -
Administrative
Assistant III
(Police)
Requesting a reclassification of the Chief's Executive
Administrative Assistant. The position is entrusted
with some of the most sensitive data, manages all
police records including personnel files, internal
investigation files, etc. and has many other tasks
that are unique to public safety and not included in
the current job classification. Although all City’s
Administrative Assistant positions 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 in the community.
The current Administrative Assistant to the Chief
position is 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.
Ongoing $0 $0
Financial Plan Page 247 Page 659 of 954
Operating Budget
General Fund
SOBC Description Type 2023-24 2024-25
5
Reclassification -
Communications
Manager
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.
Ongoing $105,567 $105,630
TOTAL $181,567 $181,630
Financial Plan Page 248 Page 660 of 954
Operating Budget
General Fund
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals
tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals
are in addition to ongoing community program services (listed in program sub-sections).
Strategic Goals
Promote best practices in Police Department recruiting and hiring efforts.
Work in partnership with City Facilities and PD to ensure new public safety building
design is equitable and inclusive for the community and all department employees.
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.
Use Community partnerships to help build a 5-year strategic plan to create
transparency and legitimacy.
Expand implementation of digital encampment management tool internally and for
potential countywide use.
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.
Maintain SLOPD bike patrol program as staffing allows.
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.
Financial Plan Page 249 Page 661 of 954
Operating Budget
General Fund
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22 Actual 2022-23 Actual 2023-24 Target 2024-25 Target
Reduce Crime
Strategic Goal:
Economic Recovery,
Department Mission
# of total Part I Crime
by year.2 2,069 2,011 2,010 2,009
Provide safe
roadways for
pedestrians, vehicles,
and bicyclists.
Strategic Goal: Patrol
Objectives,
Department Mission
# of total traffic
collisions.3
Vehicle: 399 Vehicle: 435 Vehicle: 420 Vehicle: 418
Pedestrian: 32 Pedestrian: 36 Pedestrian: 34 Pedestrian: 32
Bicycle: 36 Bicycle: 35 Bicycle: 32 Bicycle: 30
# of targeted
enforcement
operations
conducted under the
Office of Traffic
Safety Grant per year
DUI Checkpoints: 2 DUI Checkpoints: 2 DUI Checkpoints: 2 DUI Checkpoints: 2
DUI Saturation
Patrols: 28
DUI Saturation
Patrols: 20
DUI Saturation
Patrols: 28
DUI Saturation
Patrols: 28
Traffic Enforcement
Operations: 8
Traffic Enforcement
Operations: 12
Traffic Enforcement
Operations: 15
Traffic Enforcement
Operations: 15
Distracted Driving
Enforcement: 7
Distracted Driving
Enforcement:10
Distracted Driving
Enforcement: 5
Distracted Driving
Enforcement: 5
Bicycle &
Pedestrian
Enforcement: 5
Bicycle &
Pedestrian
Enforcement: 6
Bicycle &
Pedestrian
Enforcement: 9
Bicycle &
Pedestrian
Enforcement: 9
Reduce Homeless
related Calls for
Service through
proactive
engagement.
Strategic Goal:
Economic Recovery,
Department Mission,
Patrol Objective
# calls related to
homelessness4 7,441 6,444 6,300 6,200
# of unique
individuals contacted
by CAT
578 303 305 310
# of Family & Agency
Reunification 17 7 8 10
# of Local Permanent
Housing 3 11 12 13
# of Mental
Health/Substance
Abuse Treatment
Referrals
127 98 100 102
2 Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown
represent calendar year.
3 Traffic Collision data is shown by calendar year.
4 All stats related to homelessness are based on calendar year.
Table A-109:
Financial Plan Page 250 Page 662 of 954
Operating Budget Police Administration
General Fund
Police Administration
Program Description
The Police administration program plans, directs, and evaluates all police services, including overall
department leadership provided by the Chief of Police. Police administration provides business and fiscal
management; personnel hiring and training; risk management; claims/lawsuit coordination; contract
service administration; equipment purchases and maintenance; and computer application support for
public safety information systems, including computer aided dispatch (CAD) and records management
applications. This program is also responsible for preparing and implementing policies and procedures,
ensuring appropriate training and performance standards are maintained and ensuring compliance with
mandates.
Core Services & Objectives
•Provide overall department administration and leadership.
•Implement strategies to enhance intelligent lead policing to work toward reducing crime.
•Provide business and fiscal administration including grant management and contract
administration.
•Process and oversee internal affairs investigations.
•Manage the hiring and training of department personnel.
•Manage Lexipol and policy development.
•Ensure department fiscal sustainability and responsibility.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,044,483 $1,246,076 $1,372,291 10% $1,423,227 4%
Contract Services $469,784 $538,767 $594,657 10% $596,153 0%
Other Operating Costs $366,459 $318,790 $333,546 5% $338,207 1%
Police Admin Total $1,880,726 $2,103,633 $2,300,494 9% $2,357,587 2%
Major City Goal Contributions
•The Police Administration program will be responsible for ensuring the department contributes
to the work programs for the following Major City Goals: Housing and Homelessness and Diversity
Equity and Inclusion.
Table A-110:
Financial Plan Page 251 Page 663 of 954
Operating Budget Police Administration
General Fund
•Diversity Equity and Inclusion: the department will be promoting DEI best practices in recruiting
and hiring efforts. The department will also continue to work with community partners to give
the community a voice in policing and that 21st century policing recommendations are
implemented where possible. Staff will also work with community partners to help build a 5-year
strategic plan to create transparency and legitimacy.
Opportunities and Challenges
In the first quarter of 2023, the department started working with a consultant to create a five-year
strategic plan. Components of the plan include a current state assessment (internal and community
surveys, SWOT assessment, one-on-one interviews), future state development (identifying priorities,
objectives and strategies), strategic plan development (document development, review and approvals,
action plan and implementation strategies). Staff is looking forward to identifying priorities and setting
direction for the next 5-years.
The department continues to be challenged in hiring due to a diminished applicant pool. Staff is working
to create new ways of stimulating a diverse applicant pull through recruiting, marketing, and advertising
efforts.
Financial Plan Page 252 Page 664 of 954
Operating Budget Patrol
General Fund
Patrol
Program Description
The police patrol services program utilizes uniformed personnel to respond to emergencies and calls for
service; conduct preliminary investigations of criminal activity and routine traffic collisions; enforce state
and City laws and statutes; apprehend criminals; manage unusual incidents; implement crime prevention
strategies; and provide other public safety services.
Core Services & Objectives
•Use intelligent lead policing strategies focusing on neighborhood safety and quality of life and
utilizing the current Neighborhood Officer Program.
•Enforce traffic laws focused on violations that tend to increase collisions.
•Deploy the Community Action Team and Downtown Bike Unit to address adverse behavior
and homeless issues within the downtown and explore ways to manage and address homeless
related issues that negatively impact our community.
•Continue to partner with Transitions Mental Health Association (TMHA) to address the needs
of individuals that may be dealing with Mental Health related issues within our community.
•Utilize the department’s Community Service Officers to respond to non-emergency calls for
service, conduct proactive patrols and community outreach, and issue citations for Municipal
Code violations.
•Provide emergency and non-emergency response and service to the community.
•School Resource Officer provides public safety resources to local educational communities.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $12,415,883 $10,561,497 $11,785,934 12% $12,116,831 3%
Other Operating Costs $200,402 $122,900 $129,000 5% $129,000 0%
Patrol Total $12,616,286 $10,684,397 $11,914,934 12% $12,245,831 3%
Major City Goal Contributions
•Housing & Homelessness: The Patrol program will maintain the downtown bike patrol officers as
staffing allows. The department will implement the new Community Service Officer program to
ensure effectiveness and improvements in quality-of-life surrounding homelessness issues in the
downtown. The department will support the leverage of additional funding from other partner
agencies to expand the Mobile Crisis Unit and the Community Action Team.
Table A-111:
Financial Plan Page 253 Page 665 of 954
Operating Budget Patrol
General Fund
Opportunities and Challenges
The department received approval to increase the number of full-time civilian Community Service Officers
(CSOs), formerly Field Services Technicians, from two to six. The CSOs will respond to non-emergency
calls for service, conduct proactive patrols and community outreach primarily in the downtown area. In
early March, Council approved an Ordinance allowing the CSOs to issue citations for all Infraction and
Misdemeanor Violations of the Municipal Code.
The department continues to experience challenges with recruitment and retention, as a result the CAT
team continues to be understaffed with only one police officer. Additionally, TMHA has been unable to
fulfill a contract to hire a second mental health social worker to partner with CAT.
Financial Plan Page 254 Page 666 of 954
Operating Budget Investigations
General Fund
Investigations
Program Description
This program investigates criminal activity. Program staff also interview and monitor convicted sex and
arson offenders, coordinate and deliver enforcement, intervention, and education services to the high
school, and junior high, provide forensic investigative services and evidence collection and analysis, and
process and dispose of evidence and property.
Core Services & Objectives
•Collaborate with organizations to identify and improve sexual assault prevention and
investigation efforts.
•Conduct pro-active investigations in crime trends which victimize City residents and businesses.
•Provide crime awareness and public training opportunities to reduce victimization within the
community.
•Manage all evidence and property in accordance with the law and established policy.
•Work collaboratively with other law enforcement agencies to address criminal activity.
•Conduct compliance checks in accordance with the City’s Municipal Code related to alcohol and
tobacco licenses.
•Monitor licensed cannabis retail/delivery businesses and conduct investigations related to illegal
cannabis retail.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $3,596,819 $3,382,271 $3,007,865 -11%$3,055,337 2%
Contract Services $4,116 $109,892 $7,900 -93%$7,900 0%
Other Operating Costs $20,289 $29,100 $42,100 45% $42,100 0%
Investigations Total $3,621,224 $3,521,262 $3,057,865 -13%5 $3,105,337 2%
Opportunities and Challenges
5 Due to staffing shortages in Patrol, the department moved 2 FTEs from Investigations (Special Enforcement Team)
to help with workload in Patrol. If the Department becomes fully staffed, these positions can be moved back to
Investigations. In addition, programmatic changes were made to move some Contract Services budget related to
Cannabis program support to help offset staffing costs. The increase in Other Operating Costs is related to an SOBC
for investigative software.
Table A-112:
Financial Plan Page 255 Page 667 of 954
Operating Budget Investigations
General Fund
On ongoing challenge for the detective bureau has been staffing. The detective bureau has not been fully
staffed over the past year and a half. Additionally, the Special Enforcement Team (SET) has not been
operational due to low staffing levels in patrol. The priority is to fill patrol positions to support basic police
functions.
Financial Plan Page 256 Page 668 of 954
Operating Budget Police Support Services
General Fund
Police Support Services
Program Description
The support services program is divided into two divisions: Communications and Records. The program is
involved in Department of Justice audits, acts as custodian of criminal records and compliance with State
and Federal regulations. Staff are responsible for receiving, processing and dispatching emergency and
non-emergency calls for service, public outreach, processing police reports and citations, tracking and
reporting crime statistics, and maintaining confidential information.
Core Activities & Objectives
•Public Safety Answer Point for all emergency and non-emergency calls.
•Dispatch all police and fire related calls for service in a timely and efficient manner.
•Provide effective communication to support public safety personnel at all times.
•Process all police records and provide quality assurance.
•Respond and prepare public records requests and discovery letters.
•Prepare and submit all mandated statistical reports to Department of Justice and other
agencies.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $3,124,118 $2,998,997 $3,379,615 13% $3,443,751 2%
Contract Services $167,568 $156,335 $174,335 12% $178,335 2%
Other Operating Costs $23,809 $42,700 $42,700 0% $42,700 0%
Police Support Services
Total $3,315,494 $3,198,032 $3,596,650 12% $3,664,786 2%
Opportunities and Challenges
Challenges for Support Services include filling vacant Clerk and Dispatcher positions and successfully
completing training. Staff anticipates that all vacant Dispatcher positions will be filled this year. Training
for both types of positions is challenging due to the technical and rigorous schedule and typically lasts
about 8-months or longer.
Table A-113:
Financial Plan Page 257 Page 669 of 954
Operating Budget Neighborhood Services
General Fund
Neighborhood Services
Program Description
The Neighborhood Outreach & Education Program is responsible for the coordination of services and
outreach to community members with an emphasis on residential neighborhoods. The Program
coordinates response to violations of the City noise ordinance, along with related follow-up, data
collection, and the issuance of warning notices and administrative citations to property owners. The
program also includes support to various committees and neighborhood groups as well as receiving and
acting on concerns of neighborhood residents about issues affecting the quality of life.
Core Activities & Objectives
•Collaborate with patrol to improve public outreach related to crime trends including
web/social media outreach, in-person presentations, media releases, videos, etc.
•Respond to neighborhood concerns/complaints, facilitate assistance for residents.
•Create social media content calendar and push information via Nextdoor, Instagram,
Facebook, and Twitter.
•Evaluate, update, and enhance noise and Safety Enhancement Zone materials to maintain the
positive downward trend of noise disturbances in the neighborhoods.
•Management of S.N.A.P. (Student Neighborhood Assistance Program)
•Enforcement of neighborhood parking regulations.
•Oversee Party registration requests.
•SLO Solutions contract management for conflict resolution.
•Department Volunteer Coordination.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $240,804 $227,274 $245,067 8% $252,129 3%
Contract Services $18,969 $27,000 $27,000 0% $27,000 0%
Other Operating Costs $24,636 $28,400 $30,800 8% $30,800 0%
Neighborhood Services Total $284,409 $282,674 $302,867 7% $309,929 2%
Opportunities and Challenges
The Neighborhood Services program is continuously searching for new opportunities to enhance
communication with the community with the use of social media and other forms of messaging. An
ongoing challenge has been the hiring and retention of SNAP employees. The recent increase in SNAP
employee’s salary should potentially help with recruitment and ongoing retention in the future.
Table A-114:
Financial Plan Page 258 Page 670 of 954
Operating Budget Traffic Safety
General Fund
Traffic Safety
Program Description
The traffic safety program provides enforcement of traffic laws, collision investigations, education
programs, and coordination and support of special events.
Core Activities & Objectives
•Conduct special enforcement operations in the City’s most hazardous intersections and
roadways to reduce collisions, including a focus on collisions involving bicycles and
pedestrians.
•Provide enforcement efforts of DUI violations.
•Implement data-driven approaches to crime and traffic safety to maximize resources and
reduce crime and collisions and conduct programs designed to increase traffic safety in the
neighborhoods.
•Continue to actively participate in traffic safety programs such as Selective Traffic
Enforcement Programs through the California Office of Traffic Safety grants.
•Conduct collision investigations and special event coordination within the city.
•Work collaboratively with the City’s Public Works Engineering staff to improve overall traffic
and pedestrian safety.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $839,444 $1,050,666 $886,942 -16%$897,303 1%
Contract Services $7,494 $6,200 $4,900 -21%$4,900 0%
Other Operating Costs $16,907 $19,400 $21,400 10% $21,400 0%
Traffic Safety Total $863,845 $1,076,266 $913,242 -15%6 $923,603 1%
Opportunities and Challenges
The department continues to operate at a reduced capacity in Traffic which greatly affects the
department’s ability to conduct education and enforcement. The department is unable to fully staff the
Traffic program, which would be one Sergeant and three officers, due to ongoing recruitment and
retention issues at the officer level.
6 Due to staffing shortages in Patrol, the Department moved an officer from the Traffic division to help with the
workload in Patrol. If the Department becomes fully staffed, the position can be moved back to Traffic. The budget
for Contract Services was reduced and moved to Other Operating Costs due to increased costs in rain gear and
collision software.
Table A-115:
Financial Plan Page 259 Page 671 of 954
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blank.
Financial Plan Page 260 Page 672 of 954
BUSINESS ACTIVITIES &
SPECIAL REVENUE FUNDS
Financial Plan Page 261 Page 673 of 954
Page intentionally left
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Financial Plan Page 262 Page 674 of 954
Utilities
Operating Budget
UTILITIES
Mission Statement
Ensuring safe and reliable essential water and sewer services.
About the Department
The Utilities Department provides essential services that support the community’s health, well-being, and
quality of life. Through its efforts, water for the community is safely transported, treated, distributed,
used, collected, recovered, and beneficially reused. These efforts are accomplished by the department’s
water and wastewater divisions. Additionally, the department manages the City’s solid waste program
and administers the City’s stormwater compliance program. Long range planning for water resources and
infrastructure needs, environmental stewardship, and business management are required to provide
these vital services and are critical functions of the Utilities Department. In total there are 14 programs
that constitute the Utilities Department.
Financial Plan Page 263 Page 675 of 954
Utilities
Operating Budget
The Department at a glance
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Water Admin and Engineering $1,209,004 $1,348,534 $1,486,713 $1,579,212
Water Source of Supply $9,544,384 $10,818,843 $11,779,859 $12,101,484
Water Treatment $3,169,856 $3,461,885 $4,231,823 $4,435,250
Water Distribution $1,931,596 $1,859,656 $2,037,856 $2,088,658
Water Resources $500,607 $571,228 $633,999 $623,080
Wastewater Admin and
Engineering $1,366,330 $1,390,945 $1,583,037 $1,691,475
Wastewater Collection $1,335,349 $1,331,027 $1,486,752 $1,538,435
Environmental Programs $264,536 $282,237 $319,106 $326,027
Water Resource Recovery $3,914,609 $4,182,465 $4,659,977 $4,830,115
Utilities Revenue $538,096 $618,167 $648,850 $691,946
Water Quality Lab $697,677 $834,485 $866,697 $846,901
Solid Waste & Recycling1 $185,845 $317,456 $341,459 $349,657
Reservoir Operations $1,004,651 $1,309,122 $1,500,955 $1,603,884
Stormwater2 $1,115,929 $1,083,704 $1,195,293 $1,227,164
Total $26,778,469 $29,409,755 $32,772,376 $33,933,289
1 Solid Waste & Recycling is funded through the General Fund but managed by the Utilities department.
2 Stormwater is funded through the General Fund but managed by the Utilities department.
2022-23 2023-24
Existing FTEs 74.63 74.63
Additional FTEs (per SOBCs) 0 0
Supplemental/Contract FTEs 1 3
TOTAL FTEs 75.63 77.63
Table B-1:
Table B-2:
Financial Plan Page 264 Page 676 of 954
Utilities
Operating Budget
Chart B-3: Department Organizational Chart3
3 Does not include supplemental or contract positions. Stormwater is not included because it includes staff from
Administration, Public Works, and Utilities.
Financial Plan Page 265 Page 677 of 954
Utilities
Operating Budget
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals
tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals
are in addition to ongoing community program services (listed in program sub-sections).
Strategic Goal(s)
Continue to pursue grant funding for all funds and innovative strategies
to mitigate rate increases and ensure continued affordability.
Improve resiliency in water and sewer programs to ensure continued
service delivery through emergency planning, infrastructure
maintenance, and expansion of source water supplies.
In coordination with the Community Development Department, continue
to optimize water and wastewater systems to facilitate the City’s housing
goals.
Develop strategies for departmental efficiencies and continue to explore
new ways of doing business reducing ongoing operational costs and
capital delivery costs while exploring supplemental revenue streams to
reduce the rate burden on City residents and businesses
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2021-22
Actual
2022-23
Forecasted 2023-24 Target 2024-25
Target
Maintain and manage
infrastructure, assets, and facilities
responsibly and transparently
Strategic Goal: Public Stewardship
SSOs per 100 miles of
sewer main 6.8 10 0 0
Breaks/leaks per 100
miles of water main 8.89 10 <13.4 <13.4
Provide the Community with High
Quality and Reliable Service
Strategic Goal: Public Service
Recycled Water
Delivered (AF) 276.92 260 300 330
Minimize Customer
Shut-Off for
Nonpayment
69 400 <450 <450
4 2021-22 shut-offs are low because of a moratorium on utility shut-offs through December 31, 2022.
Table B-5:
4
Financial Plan Page 266 Page 678 of 954
Budget at a Glance
Water Fund
Water Fund
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
payment, and reimbursement to the City’s general fund for
internal services provided by departments such as the Human
Resources Department, City Attorney’s Office, Finance
Department, and Public Works Department1. 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
1 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 Generally Accepted Accounting Principles.
The slight long-term growth in revenue from
customer base increase and the moderate rate Figure B-6: Electricity Costs - Water Fund
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.
Financial Plan Page 267 Page 679 of 954
Budget at a Glance
Water Fund
2023-25 Financial Plan
Key Assumptions
When preparing the budget, the Water Division
analyzes past financial results, reviews upcoming
operational and capital needs, and current and future
debt obligations to assess the financial position of the
fund for its continued health. The budget prepared for
the two-year financial plan follows a “zero based
budgeting” approach, considering each line item and
its future needs. Asset condition, infrastructure age,
and future capacity needs are driving factors in
determining the Capital Project plan and debt
financing evaluations.
The needed revenue to cover the assessed expenses is then evaluated based on current rates and revenue
levels, analysis of current water use and effects on future revenue potential to provide a rate
recommendation and possible increases.
FUND REVENUES
As an enterprise fund, the Water Fund finances its operation mainly with rates charged for water services.
According to its mandate, rates must be sufficient to cover operations, capital asset improvements and
maintenance, debt obligations, and appropriate reserve levels to keep the fund healthy and prepared for
unforeseen and future funding needs. Revenues are collected from multiple sources which include:
•Water Service Charges comprised of a base fee and per-unit volumetric charges
•Sales to Cal Poly
•Development Impact Fees
•Miscellaneous charges such as account set-up fees, late charges, meter sales, and connection fees
•Investment and Property Revenue
Financial Plan Page 268 Page 680 of 954
Budget at a Glance
Water Fund
Table B-7: Revenue Forecast*
Water Rate Increase
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 necessitated 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.
Revenue Account 2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
Charges for Service
46102-Development Review Fees 21,632 26,000 26,000 26,000
46701-Sales to Cal Poly 1,140,230 1,044,673 1,106,029 1,183,946
46702-Water Sales 16,109,633 16,328,641 17,716,575 19,045,319
46703-Utilities Base Charges 5,614,817 5,754,284 6,243,398 6,711,653
46704-Reclaimed Water Sales 1,210,288 995,481 1,080,097 1,161,104
46708-Utilities Set-up Fees 176,668 130,000 60,000 60,000
46709-Other Utilities Charges 25 1,000 1,000 1,000
46712-Low Income Subsidy (14,617) (100,000) (100,000) (100,000)
46713-Cal Poly Capacity & Resilience 114,317 259,490 251,072 263,433
46799-Use of COVID Rate Relief Program (contra-revenue) (225,016) - - -
Other Revenue
43201-Miscellaneous Penalties 142,621 118,000 118,000 118,000
45204-Prop 1B Revenue 1,621,599 265,949 - -
45211-Other State Grants - 697,500 697,500 -
45307-Federal Stimulus Grants 226,994 - - -
47003-Miscellaneous 49,062 - - -
42112-Other City Licenses & Permits 40,320 -
44101-Interest on Investment 206,971 50,000 50,000 50,000
44107-Investment FMV Adjustment (956,369) - - -
44301-Sale of Surplus Property 2,155 - - -
44305-Damage to City Property 9,514 -
44306-Credit Collections 2,817 14,000 14,000 14,000
44310-Miscellaneous Revenue 30,900 20,000 20,000 20,000
Total $25,524,560 $25,605,018 $27,283,672 $28,554,454
*Excludes debt proceeds.
Financial Plan Page 269 Page 681 of 954
Budget at a Glance
Water Fund
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 address the uncertainties the community was experiencing
during COVID-19. The Utilities Department estimates that the deferral and reduction of the FY20-21 rate
increase has resulted in a $1.4 million in reduction 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 B-8: Proposed and Forecasted Water Rate Revenue Increases
2023-24 Proposed 8.5%
2024-25 Proposed 7.5%
2025-26 Forecasted 7.5%
2026-27 Forecasted 4.5%
2027-28 Forecasted 4.5%
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 participants2 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
has utilized billing inserts, social media, City 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.
2 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.
Financial Plan Page 270 Page 682 of 954
Budget at a Glance
Water Fund
FUND EXPENDITURES
Operating Programs
Water Fund operating expenditure budgets are comprised of salaries, employee benefits, and other
operating expenditures such as contract services, chemicals, and electricity. The Water Fund operating
program budgets are summarized below. The summary reflects the operating program budget amounts
for fiscal years 2023-24 and 2024-25.
Table B-10: Program Enhancements Detail
2023-24 2024-25 Table Water Fund SOBCs
1 5-Year TPS Cla-Val Service (One-time) $ -$ 10,000
This is a periodic service on an automatic control 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/tip.
3 Dell or Ipads 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 asses and direct work efforts to
optimize performance. Currently includes SWR (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 Time Efficiency Recommendations per audit by the Water Quality Lab.
These upgrade include a new automated titration unit for alkalinity and hardness. This will
result in more accurate results and will save ~0.5 staff hours daily.
7 New Contract - Engineering Technician I-III (One-time) $ 43,448 $ 43,034
Table B-9: Operating Expenses 2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
6001-Water Administration/Engineering 1,209,004$ 1,348,534$ 1,486,713$ 1,579,212$
6002-Water Source of Supply 9,544,384$ 10,818,843$ 11,779,859$ 12,101,484$
6003-Water Treatment 3,169,856$ 3,461,885$ 4,231,823$ 4,435,250$
6004-Water Distribution 1,931,596$ 1,859,657$ 2,037,856$ 2,088,658$
6005-Water Resources 500,607$ 571,228$ 633,999$ 623,080$
6105-Utility Billing 265,660$ 308,054$ 324,425$ 345,973$
Non-Departmental $ 131,872 2,138 $ 2,875$ 3,000$
Total 16,623,245$ 18,500,074$ 20,497,550$ 21,176,658$
Financial Plan Page 271 Page 683 of 954
Budget at a Glance
Water Fund
Water Fund SOBCs 2023-24 2024-25
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 the
following entry level Engineering work and supporting 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 GIS. This position would support data digitization efforts at the WTP and
Water Distribution section, as well as coordinating with existing GIS staff to improve data
quality and 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 a new job description and classification for "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 an computerized equipment control screen that needs to be
replaced because of water damage.
Total $191,384 $177,059
Capital Improvement Plan
Infrastructure maintenance and replacement continues to be a top Water Fund priority. Both the City’s
source water and drinking water infrastructure are aging and require continual investment to be properly
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.
Below is a highlight of major 2023-25 Water Fund capital projects:
1.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.
2.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 cylinder 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.
3.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 utilize insurance or FEMA to aid in cost recovery.
Financial Plan Page 272 Page 684 of 954
Budget at a Glance
Water Fund
4.Reservoir 2 Replacement – Reservoir 2 is the largest treated water storage tank in the City. This
asset ensures that the City maintains adequate fire flow 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.
Project 2023-24 2024-25 2025-26 2026-27 2027-28
1 879 Roofing Project 50,000
2 Buchon and Santa Rosa 100,000
3 Chorro - Highland to Meinecke 24" Pipeline Repl 100,000 1,900,000
4 Craig, Christina, and Jaycee Pipeline Replacement -
5 EV Charging Stations-879 Morro 50,000
6 Filter Media Replacement and Underdrain Repairs 60,000 60,000 250,000
7 Fleet Replacement: Utilities 60,000 150,000 715,000 995,000
8 Future Public Works Project with Water Contributions 50,000 50,000
9 Highland and UPRR at Cal Poly Pipeline Replacement 850,000
10 IT Replacements - Annual Asset Maintenance Account 32,977 172,259 32,332 9,168 18,428
11 Johnson - Iris to Bishop Pipeline Replacement 3,300,000
12 Orcutt Street - Fernwood to Laurel Pipeline 25,000 675,000
13 Pacific Well - Security Fencing -
14 Patricia, Highland, and La Entrada Pipeline Repl 127,000 1,397,000
15 Recycled Water Pump Station Maintenance 60,000
16 Recycled Water Storage Tank 20,000
17 Reservoir 2 Replacement 900,000 500,000
18 Rockview - Stoneridge to Broad Pipeline Repl 130,000 1,530,000
19 Salinas Reservoir Transfer of Ownership Plan 150,000
20 Santa Rosa - Stenner Creek to Highland 30" Pipeline 230,000 8,230,000
21 SGMA GSP (Groundwater Basin Management)150,000 150,000 150,000 150,000
22 Source Water Roadmap 90,000
23 Stenner Canyon Waterline Replacement 80,000 1,100,000
24 Tank Farm-Long to Innovation Recycled Water Pipeline 25,000 625,000
25 Tank Maintenance and Cleaning 50,000 250,000
26 UV Bulb Replacement (annual replacement)- 10,000 10,000 10,000 10,000
27 Water Distribution System - Point Repairs 250,000 250,000 250,000
28 Water Meters and Boxes 167,500 171,500 175,000 175,000 175,000
29 Water Storage Tank Maintenance 755,000 1,000,000 127,000 1,100,000 1,100,000
30 Water Treatment Plant - Building Maintenance 650,000
31 Water Treatment Plant - Facility Asset Replacement 245,000 115,000 145,000 45,000 140,000
32 Water Treatment Plant - Major Equipment Maint 189,000 180,000 180,000 180,000 180,000
33 Water Treatment Plant - Water Meter Replacement 10,000 30,000 54,800
34 Water Utility Trench Repair (91147)280,000 280,000 280,000 280,000 280,000
35 Water Valve Cover Adjustments 276,000 35,000 35,000 35,000 35,000
36 Waterline Abandonment & Connections 50,000 50,000 50,000 50,000 50,000
37 TOTAL 6,845,477$ 5,318,759$ 11,979,132$ 5,826,168$ 5,975,428$
2023-25 Financial PlanTable B-11:
Financial Plan Page 273 Page 685 of 954
Budget at a Glance
Water Fund
Debt Service
Table B-12: Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
2024
2018 Refunding Bond (Dispatch Center3) $234,650 $27,353 2039
2018 Refunding Water Bond (Refund 2006 Bonds) $7,860,000 $888,000 2035
2020 State I-Bank Loan – Water Treatment Plant $11,683,322 $955,039 2040
Total Water Fund Debt $19,777,972 $2,448,846
1.2018 Refunding Water Bond – This is the water fund’s contribution to construction of the Public
Safety Dispatch Center.
2.2018 Refunding Bond – This bond paid for Water Treatment Plant improvements in 2006.
3.2020 Infrastructure Bank Loan – This loan is paying for the recent Water Treatment Plant
Energy Efficiency Project.
Water Rates
Usage Current Rates Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single-Family (three tiers)
Tier 1: 0 to 5 units $6.90 $7.94 $8.54
Tier 2: 6 to 12 units $8.04 $9.16 $9.84
Tier 3: 13+ units $14.74 $15.79 $16.97
Multi-Family (all use) $7.88 $8.91 $9.58
Non-Residential (all use) $9.57 $9.43 $10.14
Landscape (all use) $11.73 $9.63 $10.35
Monthly Base Fee Current Rates4 Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Residential $24.12 $28.15 $30.25
Multi-Family, Non-Residential, and Landscape by Water Meter Size:
¾ inch or less $24.12 $28.15 $30.25
1-inch meter $40.28 $47.00 $50.50
1.5-inch meter $80.38 $93.75 $100.80
2-inch meter $128.61 $150.05 $161.30
3-inch meter $241.31 $281.50 $302.60
4-inch meter $402.24 $469.25 $504.45
6-inch meter $804.30 $935.25 $1,008.60
8-inch meter $1,286.92 $1,501.25 $1,613.85
Water System Access Charge5 $93.02 $100.93 $108.50
3 This amount represents a portion of the debt that is attributable to the water fund that was part of an overall
refinanced debt amount.
4 Current rates effective February 1, 2021 (deferred from July 2020)
5 This charge applies where the City provides fire protection only to businesses that utilize a private well for
domestic purposes.
Table B-13:
Table B-14:
Financial Plan Page 274 Page 686 of 954
(A) (B) (C) (D) (E) (F) (G)
Actual Budget Projected Projected Projected Projected Projected
2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28
1 Revenue 27,922$ 26,478$ 28,156$ 28,554$ 38,754$ 32,185$ 33,657$
2 Charges for Services 24,148 24,440 26,384 28,352 30,552 31,983 33,455
3 46102‐Development Review Fees 22 26 26 26 26 26 26
4 46701‐Sales to Cal Poly 1,140 1,045 1,106 1,184 1,340 1,458 1,558
5 46702‐Water Sales 16,110 16,329 17,717 19,045 20,474 21,395 22,358
6 46703‐Utilities Base Charges 5,615 5,754 6,243 6,712 7,215 7,540 7,879
7 46704‐Reclaimed Water Sales 1,210 995 1,080 1,161 1,248 1,304 1,363
8 46708‐Utilities Set‐up Fees 177 130 60 60 60 60 60
9 46709‐Other Utilities Charges 0 1 1 1 1 1 1
10 46712‐Low Income Subsidy (15) (100) (100) (100) (100) (100) (100)
11 46713‐Cal Poly Capacity & Resilience 114 259 251 263 288 299 310
12 46799‐Use of COVID Rate Relief Program (225) ‐ ‐ ‐ ‐ ‐ ‐
13 Fines, Forefeitures, and Penalties 143 118 118 118 118 118 118
14 Grants and Subventions 1,849 963 698 ‐ ‐ ‐ ‐
15 Miscellaneous Fees and Special Assessments 49 ‐ ‐ ‐ ‐ ‐ ‐
16 Licenses, Permits, and Franchises 40 ‐ ‐ ‐ ‐ ‐ ‐
17 Long‐Term Debt Proceeds1 2,397 873 873 ‐ 8,000 ‐ ‐
18 Other General Government Revenue2 (704) 84 84 84 84 84 84
19 Impact Fees 5,162$ 1,370$ 800$ 800$ 800$ 800$ 800$
20 Impact Fees3 5,162 1,370 800 800 800 800 800
21 Expenditure by Category 27,154$ 41,573$ 32,040$ 31,614$ 39,338$ 34,510$ 35,531$
22 Capital Asset Expense4 5,706 17,976 6,845 5,319 11,979 5,826 5,975
23 Debt Services 2,307 2,443 1,870 1,869 1,866 2,391 2,390
24 General Government 2,517 2,312 2,826 3,250 3,738 3,924 4,121
25 Operations 11,449 13,593 14,995 15,474 15,877 16,309 16,798
26 Salaries and Benefits 5,175 5,249 5,503 5,702 5,878 6,060 6,247
27 Expenditure by Function 27,154$ 41,573$ 32,040$ 31,614$ 39,338$ 34,510$ 35,531$
28 Water Administration/Engineering 3,663 1,499 1,514 1,607 1,675 1,698 1,748
29 Water Source of Supply 11,072 14,753 11,930 12,436 13,207 12,884 13,885
30 Water Treatment 4,593 11,848 7,984 8,502 7,583 9,058 8,461
31 Water Distribution 3,772 8,629 6,691 4,675 12,101 5,855 6,184
32 Water Resources 501 606 634 623 642 662 682
33 Utility Billing 266 308 324 346 356 367 378
34 General Government 2,517 2,312 2,826 3,250 3,738 3,924 4,121
35 Non Departmental5 772 1,618 136 175 35 62 72
36 Change in Financial Position (Revenues minus $ 5,930 (13,725)$ (3,083)$ (2,260)$ 216$ (1,525)$ (1,074)$
37 Working Capital ‐Beginning 28,503 34,725 20,729 16,967 14,001 14,052 12,362
38 CALPERS ADP 272 272 679 706 165 165 165
39 Working Capital ‐ After CALPERS 6 $ 34,725 20,729$ 16,967$ 14,001$ 14,052$ 12,362$ 11,123$
40 Operating Reserve (20%)4,290 4,719 5,039 5,259 5,472 5,737 5,911
41 Rate Stabilization (10%)2,286 2,313 2,507 2,694 2,903 3,039 3,179
42 UFL Trust Fund 176 176 176 176 176 176 176
43 Unreserved Working Capital Year End 27,973$ 13,521$ 9,246$ 5,872$ 5,501$ 3,411$ 1,857$
4Includes carryover balances for multi‐year CIP projects.
5Non‐Departmental includes staffing contingencies, miscellaneous CIP expenditures, and assigned project balances.
6Working Capital reflects audit adjustments.
2023‐25 Financial Plan
in thousands
1This includes the loan for the Water Treatment Plant Efficiency Project and a forecasted loan for the 30" Pipeline Replacement on Santa Rosa
between Stenner Creek and Highland.
3Impact fees are separated from other water revenues because they are restricted to activities compliant to AB 1600 (Government Code §§
66000 et seq), and cannot be used for general water operations.
2Other General Government Revenue includes a fair market adjustment for investments in 2021‐22.
Table B-15: Water Fund Five Year Forecast
Financial Plan Page 275 Page 687 of 954
Operating Budget Water Administration
Water Fund Utilities
Water Administration
Program Description
The Water Fund’s Administration Program provides guidance and direction for the effective management
of all the Water Fund’s programs. The Water Administration Program evaluates and provides strategic and
long-term planning, rate setting and funding, and engineering and capital plan development for the City’s
water system. Program goals are 1) efficient management and achievement of Water Enterprise Core
Services and Objectives and 2) well-planned and effectively delivered capital improvement project
implementation.
Core Services & Objectives
Provide Department Administration and Leadership.
Continue developing and implementing operational efficiencies.
Monitor Water Enterprise Fund financial condition and recommend rates and revenues needed
to support program and service objectives.
Administer Capital Improvement project management and planning activities.
Continue implementation and tracking of strategic planning activities.
Continue safety assessments and ensure compliance with safety regulations.
Manage water-related public outreach and communication efforts.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $900,734 $828,267 $1,013,698 22% $1,062,840 5%
Contract Services $40,531 $78,700 $70,071 -11% $98,158 40%
Other Operating Costs $267,738 $441,567 $402,743 -8% $418,214 4%
Total Program $1,209,004 $1,348,534 $1,486,713 10% $1,579,212 6%
Challenges and Opportunities
In 2023-25, the Water Administration section intends to focus efforts on delivery (design and construction)
of major capital improvement and long-term planning projects. Projects such as the Water Treatment Plant
Infrastructure Renewal Strategy, groundwater pumping program, and Reservoir 2 replacement project will
require substantial design, planning, and construction. Staff will also need to be very engaged in the
financing for these projects, especially as service and construction costs have escalated rapidly in recent
years.
While operational costs have also increased substantially in the past two years, especially costs related to
chemicals and electricity, opportunities exist to identify increased efficiencies and new ways of doing
business with respect to operations as well as opportunities to utilize automation to decrease ongoing
operating costs, thus alleviating the rate burden on the water fund rate payer.
Table B-16:
Financial Plan Page 276 Page 688 of 954
Operating Budget Water Source of Supply
Water Fund Utilities
Water Source of Supply
Program Description
The Water Source of Supply program procures raw water from the City’s three primary surface sources:
Whale Rock Reservoir, Salinas Reservoir (Santa Margarita Lake), and Nacimiento Reservoir, to provide a
dependable supply of raw water for treatment at the City’s water treatment plant. Additional sources of
supply include highly treated recycled water from the City’s Water Resource Recovery Facility that is used
for irrigation and other approved purposes, and groundwater supplies that are currently being redeveloped
and expanded.
Core Services & Objectives
Deliver raw water supplies in a reliable, cost-effective manner.
Operate, maintain, and repair supply facilities.
Maximize production and use of recycled water.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $187,745 $173,151 $181,649 5% $189,330 4%
Contract Services $8,457 $27,415 $16,500 -40%$16,500 0%
Other Operating Costs $9,348,182 $10,618,277 $11,581,709 9% $11,895,653 3%
Total Program $9,544,384 $10,818,843 $11,779,859 9% $12,101,484 3%
Opportunities and Challenges
For many years the Source of Supply program has focused its efforts on expanding surface water supplies
to meet City water needs. Surface water supplies are currently maximized so the department is focusing
efforts on expansion of recycled water supplies as well as reestablishment of its groundwater pumping
program. Expansion of these alternative supplies will help alleviate demand on the City’s surface water
supplies and will provide the department with additional sources of supply to combat drought and climate
change. More details about the expansion of these water supplies can be found in the Water Resources
program narrative.
Due to recent storms, the Whale Rock pipeline experienced a minor landslide that will require repair once
conditions dry out adequately. Additionally, approximately 800 feet of the Nacimiento pipeline line was
damaged by flood flows within the Salinas River. The County of San Luis Obispo, who is responsible for
management of the Nacimiento pipeline anticipates that the City’s portion of repair costs will be between
$165,000 - $332,000 after reimbursement is provided by FEMA. If the project is deemed ineligible for
FEMA assistance, the City’s portion of the cost is estimated to range from $662,000 to $1,325,000.
Table B-17:
Financial Plan Page 277 Page 689 of 954
Operating Budget Water Treatment
Water Fund Utilities
Water Treatment
Program Description
The Water Treatment program receives raw water from three surface reservoirs, treats it to meet potable
water standards, and delivers it into the water distribution system. The Water Treatment Plant produces
approximately five million gallons of potable water per day for the City of San Luis Obispo and Cal Poly. The
program goal is to provide an adequate water supply, treated to State and Federal standards, for domestic
consumption and fire suppression.
Core Services & Objectives:
•Protect public health - Continue to provide uninterrupted supply of high-quality water to the
distribution system.
•Continue to meet all treatment standards as required by Environmental Protection Agency (EPA),
State Water Resource Control Board’s (SWRCB) Division of Drinking Water, and other regulatory
agencies.
•Continue with succession planning goals through development of standard operating procedures,
an internship program, etc.
•Continue development of computerized maintenance database and work order system.
•Continue development and implementation of Capital Improvement Projects.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,930,767 $1,794,669 $2,049,235 14% $2,143,847 5%
Contract Services $293,921 $340,860 $397,270 17% $421,620 6%
Other Operating Costs $945,166 $1,326,356 $1,785,317 35% $1,869,783 5%
Total Program $3,169,856 $3,461,885 $4,231,823 22%1 $4,435,250 5%
1 Over 9% of the increase in operating expenses are attributable to increased electricity costs. About 5% is
attributable things like increased chemical, construction, and machinery costs. An additional 6.5% are due to
increased staffing expenditures authorized by Resolution No. 11316 and 11379 to better align with industry
standards.
Table B-18
Financial Plan Page 278 Page 690 of 954
Operating Budget Water Treatment
Water Fund Utilities
Opportunities and Challenges
Beginning in 2022-23, staff began production of the Water Treatment Plant Infrastructure Renewal
Strategy. The majority of the production of this study will take place in during the 2023-25 Financial Plan,
where staff will identify and prioritize future Water Treatment Plant improvements needed to optimize
operations and improve treatment plant reliability. Additionally, this plan will address methods for
controlling ongoing cost increases related to staffing, chemical use, and electricity use.
Due to the damage associated with recent storms, the roof at the Water Treatment Plant has leaks that
require repair. Due to the unique construction of the roof, it has been recommended that the roof of the
facility be repaired. Replacement of the Water Treatment Plant roof is estimated to cost $600,000 and is
budgeted to occur 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.
Continued challenges in the water treatment section include controlling escalating chemical and
electricity costs while ensuring compliance with new water quality regulations and optimizing source
water use. While the treatment plant receives water from three local reservoirs, each reservoir has
unique water quality characteristics that require proper planning and treatment strategies to ensure
regulatory compliance. Additionally, treatment plant staff are critical in the City’s optimization of its
surface water supplies for long-term sustainability. Utilization of water from Nacimiento Lake will
continue to be the focus of treatment plant staff moving forward, preserving water stored in Salinas
Reservoir and Whale Rock Reservoir.
Financial Plan Page 279 Page 691 of 954
Operating Budget Water Distribution
Water Fund Utilities
Water Distribution
Program Description
The Water Distribution Program is responsible for the delivery of potable water from the Water Treatment
Plant and wells to system users and fire hydrants via 12 water storage facilities, seven pump stations, and
approximately 180 miles of water mains. The Water Distribution Program also delivers recycled water
from the Water Resource Recovery Facility to landscape irrigation users via approximately 13 miles of
recycled water mainlines (purple pipelines). Program staff collaborates with Public Works to design,
construct, and commission capital improvement projects. The program goal is uninterrupted water flow
at adequate pressure with minimum water leakage.
Core Services & Objectives:
•Continue the water distribution system improvements in accordance with the Capital
Improvement Plan.
•Design, construct, and implement the recommendations in the Water System Improvement Plan.
•Maintain compliance with all applicable regulations and protect public health.
•Conduct preventative maintenance programs to reduce infrastructure life-cycle costs while
reducing the likelihood of leaks and breaks that result in water outages for City residents and
businesses.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,614,191 $1,453,639 $1,594,946 9% $1,652,330 3%
Contract Services $83,719 $98,515 $111,415 13% $111,915 1%
Other Operating Costs $233,685 $307,503 $331,495 8% $324,412 -2%
Total Program $1,931,596 $1,859,656 $2,037,856 10% $2,088,658 2%
Challenges and Opportunities:
The Water Distribution section operations are forecasted to be impacted by the large amount of
development occurring within the City. The section intends to focus efforts on ensuring safe and orderly
expansion of water distribution infrastructure while ensuring that existing customers are minimally
impacted by water distribution system expansion.
In addition to system expansions due to new development, the section will be leading several Capital
Improvement projects to decrease asset age, increase fire flow capacity, and reduce the likelihood of
water outages within the community. These projects include replacement of the floating cover on
Reservoir 2, replacing an aging 16-inch water line on Johnson Avenue, replacing an 18-inch concrete
cylinder pipeline on Chorro Street, and beginning design for the future replacement of Reservoir 2.
Ongoing challenges in the section include managing a complex network of distribution pipelines where
many pipelines are approaching the end of their useful lifespans and meeting new regulatory
requirements from the State associated with Water Loss Metrics and Lead Service Line Identification.
Table B-19:
Financial Plan Page 280 Page 692 of 954
Operating Budget Water Resources
Water Fund Utilities
Water Resources
Program Description
The Water Resources program coordinates the planning, development, implementation, and regulatory
reporting for programs and services related to water use projections, recycled water, water conservation,
and groundwater pumping.
Core Services & Objectives:
•Increase water conservation and water use efficiency opportunities within the community.
•Implement water conservation programs in alignment with California’s goals for making water
conservation a way of life.
•Monitor development trends and City growth and ensure water resources are available.
•Implement safe and sustainable use of recycled water for irrigation use.
•Expand the use of groundwater as a source of supply through groundwater quality and
availability related studies and projects.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $441,325 $494,978 $560,149 13% $548,830 -2%
Contract Services $15,378 $8,200 $8,300 1% $8,400 -1%
Other Operating Costs $43,903 $68,050 $65,550 -4%$65,850 0%
Total Program $500,607 $571,228 $633,999 11% $623,080 -2%
Challenges and Opportunities
During 2023-25 the Water Resources section will have the opportunity to directly contribute to the
expansion of the City’s groundwater pumping program, as the City has been preliminarily approved for a
$5.9M grant to construct and equip groundwater wells sufficient to pump and treat approximately 600
acre-feet of groundwater each year. This project will result in an increase in available water supply for the
City while simultaneously removing and treating a localized plume of contaminated groundwater.
Challenges for the section include implementation of new statewide water conservation regulations and
implementing appropriate conservation measures that are embraced by the community coming off a
winter of rainfall that fully replenished the City’s water supplies.
Table B-20:
Financial Plan Page 281 Page 693 of 954
Page intentionally left
blank.
Financial Plan Page 282 Page 694 of 954
Budget at a Glance
Sewer Fund
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
internal services provided by departments such as
the Human Resources Department, City Attorney’s
Office, Finance Department, and Public Works
Department1. 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
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 four percent across all sewer fund customer classes in FY23-24 and four percent in
FY24-25.
1 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 Generally Accepted Accounting Principles.
Figure 1: Electricity Costs - Sewer Fund
Financial Plan Page 283 Page 695 of 954
Budget at a Glance
Sewer Fund
2023-25 Financial Plan
Key Assumptions
When preparing a new budget, the Wastewater Division analyzes the Sewer
Fund’s past financial results, upcoming operational and capital needs,
current and future debt obligations, and the financial outlook of the fund
ten years into the future. The financials prepared for the two-year financial
plan follows a “zero based budgeting” approach, considering each line item
and its future need anew. The condition, infrastructure age, and future
capacity needs are driving factors in determining the Capital Project plan
presented in this report and influence the assessment of debt issuance
needs. This forms the base for the evaluation of required revenue and the
rate levels needed to support ongoing operation for sewer operations
including the collection and treatment of wastewater.
FUND REVENUES
As an enterprise fund, the Wastewater Division finances its operation mainly through rates charged for
sewer services. Additional revenue is collected from development impact fees, and sewer account related
charges. In accordance with its mandate, sewer rates need to be sufficient to cover operation, capital
asset improvements and maintenance, debt obligations, and appropriate reserve levels to keep the Sewer
Fund healthy and prepared for unforeseen and future funding needs. Sewer Fund revenue is collected
from multiple sources which include:
•Sewer Service Charges, including a base fee and volumetric charge per unit
•Sales to Cal Poly
•Development Impact Fees
•Industrial User Fees
•Miscellaneous charges such as account set-up fees, late charges, meter sales, and connection
fees.
•Investment and Property Revenue
Financial Plan Page 284 Page 696 of 954
Budget at a Glance
Sewer Fund
Table B-21: Revenue Forecast
Sewer Rates Increase
The Sewer Fund will be requesting an overall fund-level rate increase of four percent effective July 1, 2023
and four percent effective July 1, 2024. Proposed rate increases are largely necessitated 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 four percent and four percent referenced above represent the
percentage increase in rate revenue required by the sewer 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 sewer use
Revenue Account 2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
Charges for Services
46102-Development Review Fees 21,608 26,000 26,000 26,000
46104-Sewer Wye Abandonment and Installation Fees 5,220 - - -
46701-Sales to Cal Poly 1,146,613 1,026,452 1,012,594 1,007,838
46703-Utilities Base Charges 4,892,901 4,815,655 5,008,281 5,208,612
46705-Sewer Service Charges 13,341,764 12,792,082 13,303,765 13,835,916
46708-Utilities Set-up Fees 204,924 60,000 60,000 60,000
46709-Other Utilities Charges 9,253 70,000 1,000 1,000
46712-Low Income Subsidy (13,437) (100,000) (100,000) (100,000)
46713-Cal Poly Capacity & Resilience 243,568 243,568 472,534 472,534
Fines, Forefeitures, and Penalties
43201-Miscellaneous Penalties 142,652 120,000 118,000 118,000
43302-Administrative Citations - General 300 - - -
43303-Administrative Citations - Utilties 2,425 - - -
Other Revenue
45211-Other State Grants 95,308 1,386,153 1,386,153 -
45307-Federal Stimulus Grants 2,105 - - -
47003-Miscellaneous 53,156 - - -
42007-Other Licenses and Permits 434 - - -
42105-Industrial User Permits 86,468 85,000 85,000 85,000
44101-Interest on Investment 257,481 50,000 50,000 50,000
44107-Investment FMV Adjustment (1,293,234) - - -
44301-Sale of Surplus Property 25,100 - - -
44305-Damage to City Property 1,233 -
44306-Credit Collections 2,817 10,000 14,000 14,000
44310-Miscellaneous Revenue 61,723 20,000 20,000 20,000
Total 19,290,381$ 20,604,910$ 21,457,327$ 20,798,900$
*Excludes debt proceeds.
Financial Plan Page 285 Page 697 of 954
Budget at a Glance
Sewer Fund
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 (four percent and four 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 five 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 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 B-22: Proposed and Forecasted Sewer Rate Revenue Increases
2023-24 Proposed 4%
2024-25 Proposed 4%
2025-26 Forecasted 4%
2026-27 Forecasted 4%
2027-28 Forecasted 3.5%
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 participants2 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
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.
2 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.
Financial Plan Page 286 Page 698 of 954
Budget at a Glance
Sewer Fund
FUND EXPENDITURES
Operating Programs
Sewer Fund operating expenditure budgets are comprised of salaries, employee benefits, and other
operating expenditures such as contract services, chemicals, and electricity. The Sewer Fund operating
program budgets are summarized below. The summary reflects the operating program base budget
amounts for fiscal years 2023-24 and 2024-25.
Table B-24: Program Enhancement Detail
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 asses and direct work efforts to optimize
performance. Currently includes SWR (10%), Sewer (45%), and Water (45%). May include
Stormwater at a future date.
2 New Contract - Engineering Technician I-III (One-time) $ 54,311 $ 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 the
following entry level Engineering work and supporting 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. The 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. The department has been
maintaining a modest budget ($1,000) for updates as pertinent on off cycle years.
5 UV Bulbs for Disinfection $ 18,000 $ 18,000
This is being moved from CIP to operating expenditures.
Total $ 175,963 $ 190,849
Table B-23: Operating Expenses 2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
6101-Wastewater Admin and Eng 1,366,330$ 1,390,945$ 1,583,037$ 1,691,475$
6102-Wastewater Collection 1,335,349$ 1,331,027$ 1,486,752$ 1,539,435$
6103-Environmental Programs 264,537$ 282,237$ 319,106$ 326,027$
6104-Water Resource Recovery 3,914,610$ 4,182,465$ 4,659,977$ 4,830,115$
6105-Utility Billing 272,436$ 310,113$ 324,425$ 345,973$
6106-Water Quality Lab 697,677$ 832,235$ 863,822$ 843,901$
Non Departmental 1,035$ 102,654$ -$ -$
Total 7,851,974$ 8,431,676$ 9,237,119$ 9,576,926$
Financial Plan Page 287 Page 699 of 954
Budget at a Glance
Sewer Fund
Capital Improvement Plan
Infrastructure maintenance and replacement continues to be a top Sewer Fund priority. Based upon aging
wastewater infrastructure, the Sewer Fund needs to continue replacement of sewer mainlines to reduce
inflow and infiltration into the collection system, reduce scheduled maintenance, increase capacity to
allow for development, and reduce wastewater overflows. The Sewer Fund continues work on the Water
Resource Recovery Facility (WRRF) upgrade and is also preparing for the costs of near-term projects
including the relocation of the Wastewater Collection shop as it is projected to be displaced by the City’s
Prado Road Overpass project. The Sewer Fund’s capital improvement program funding requirement is
$20,923,401 in 2021-22 and $6,623,483 in 2022-23, as presented at the end of this section.
Below is a highlight of several key 2023-25 Sewer Fund capital projects and their proposed expenditures:
1.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.
2.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).
3.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.
4.Serrano, Bressi, Dana, and Higuera Pipeline Replacement – This project will replace various
sewer mains that are in poor condition or are near capacity. For FY 24-25, $1,300,000 has been
allocated for design and construction.
5.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.
Financial Plan Page 288 Page 700 of 954
Budget at a Glance
Sewer Fund
6.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.
7.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 $250,000 is programmed for FY24-25.
Project 2023-24 2024-25 2025-26 2026-27 2027-28
1 879 Roofing Project 50,000
2 Bee Bee - South Street to Sandercock Pipeline Replacement 400,000
3 Broad, Murray, and Chorro Pipeline Replacement 145,000
4 Demolish Old Effluent Structure and Minor Paving 50,000 495,000
5 EV Charging Stations-879 Morro 50,000
6 Fleet Replacement: Utilities 85,000 20,000 40,000 570,000
7 Flow Study -
8 Foothill - Cuesta Sewer Siphon 200,000 250,000 2,750,000
9 Foothill-Chorro Pipeline Replacement 250,000 2,750,000
10 Future Public Works Project with Sewer Contributions 50,000 50,000
11 Inflow/Infiltration Reduction 250,000 250,000 250,000 250,000
12 Infrastructure Renewal Strategy Report Update -
13 IT Replacements - Annual Asset Maintenance Account 54,343 179,806 34,641 9,168 25,524
14 Johnson and Buchon Pipeline Replacement 135,000 2,485,000
15 Morro, Mill, Santa Rosa, Chorro Pipeline Replacement 253,000
16 San Jose, Ramona, Monte Vista, and California Pipeline Repl 1,225,000
17 Screw Press 200,000 3,360,000
18 Serrano, Bressi, Dana, and Higuera Pipeline Replacement 25,000 1,275,000
19 Sewer Lift Station Maintenance 200,000 80,000 80,000
20 Sewer Maintenance Hole Cover Adjustments 180,000 30,000 30,000 30,000 30,000
21 Silver City Lift Station 70,000 100,000 1,980,000
22 Taft, Hathaway, Phillips, Buena Vista, and Loomis Pipeline Repl 1,225,000
23 Trench Repair 25,000 25,000 25,000 25,000 25,000
24 Wastewater Collection System - Point Repairs 120,000 120,000 120,000
25 Water Meters and Boxes 167,500 171,500 175,000 175,000 175,000
26 WRRF - Building Maintenance 150,000 825,000
27 WRRF - Facility Asset Replacement - 125,000 125,000 75,000 200,000
28 WRRF Power Cogeneration Upgrade 150,000 1,475,000
29 WWC Shop 6,500,000
30 Grand Total 9,304,843$ 3,631,306$ 8,089,641$ 1,689,168$ 10,760,524$
2023-25 Financial PlanTable B-25:
Financial Plan Page 289 Page 701 of 954
Budget at a Glance
Sewer Fund
Debt Service
Table B-26: Debt Issue – Asset Outstanding
Principal
Annual
Payment
Final
Year
2024
1 2008 Suntrust Loan $180,000 $183,780 2024
2 2009 State I-Bank Loan - Farm Lift Station $6,304,105 $551,172 2038
3 2014 US Bank Wastewater Lease Agreement $3,395,863 $617,160 2029
4 2018 Refunding Bond (Dispatch Center) $259,350 $30,233 2039
5 2019 SRF Loan – WRRF Upgrade $136,000,000 2054
Total Sewer Fund Debt $146,139,108 $1,382,345
1.2008 Suntrust Loan – This loan was used to construct the Tank Farm Lift Station and Force Main
Project.
2.2009 Infrastructure Bank Loan – This loan was also used to construct the Tank Farm Lift Station
and Force Main Project.
3.2014 US Bank Lease Agreement – This lease was used to construct energy conservation
improvements at the Water Resource Recovery Facility.
4.2018 Refunding Bond – This is the sewer fund’s contribution to construction of the Public Safety
Dispatch Center.
5.2019 SRF Loan – This loan was used to fund a majority of the upgrade of the Water Resource
Recovery Facility. This loan was previously for $140 million, but the City was able to obtain a $4
million debt forgiveness. The first payment will be in FY24-25 for $5,808,792 and will have
ongoing payments of $5,902,954.
Financial Plan Page 290 Page 702 of 954
Budget at a Glance
Sewer Fund
Sewer Rates
Usage Current Rates Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single-Family and Multi-
Family Residential Per
Unit Cost (Up to Sewer
Cap)3
$9.19 $9.44 $9.82
Non-Residential Per Unit
Cost (for All Water
Consumption)
$9.19 $9.88 $10.27
Monthly Base Fee Current Rates4 Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single-Family Residential $21.89 $23.58 $24.52
Multi-Family and Non-Residential By Water Meter Size:
¾ inch or less $21.89 $23.58 $24.52
1-inch meter $36.55 $39.37 $40.95
1.5-inch meter $72.86 $78.51 $81.65
2-inch meter $116.63 $125.67 $130.70
3-inch meter $218.63 $235.78 $245.21
4-inch meter $364.78 $393.04 $408.76
6-inch meter $729.34 $785.85 $817.28
8-inch meter $1,166.99 $1,257.40 $1,307.70
10-inch meter $1,677.72 $1,807.71 $1,880.02
3 One Unit = 748 Gallons
4 Current rates effective February 1, 2021 (deferred from July 2020)
Table B-27:
Table B-28:
Financial Plan Page 291 Page 703 of 954
(A) (B) (C) (D) (E) (F) (G)
Actual Budget Projected Projected Projected Projected Projected
2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28
1 Revenue 65,846$ 51,737$ 52,590$ 20,799$ 21,544$ 22,329$ 23,026$
2 Charges for Services 19,852 18,934 19,784 20,512 21,257 22,042 22,739
3 46102‐Development Review Fees 22 26 26 26 26 26 26
4 46104‐Wye Abandonment/Installation Fees 5 ‐ ‐ ‐ ‐ ‐ ‐
5 46701‐Sales to Cal Poly 1,147 1,026 1,013 1,008 991 984 960
6 46703‐Utilities Base Charges 4,893 4,816 5,008 5,209 5,417 5,634 5,831
7 46705‐Sewer Service Charges 13,342 12,792 13,304 13,836 14,389 14,965 15,489
8 46708‐Utilities Set‐up Fees 205 60 60 60 60 60 60
9 46709‐Other Utilities Charges 9 70 1 1 1 1 1
10 46712‐Low Income Subsidy (13) (100) (100) (100) (100) (100) (100)
11 46713‐Cal Poly Capacity & Resilience 244 244 473 473 473 473 473
12 Fines, Forefeitures, and Penalties 145 120 118 118 118 118 118
13 Grants and Subventions 97 1,386 1,386 ‐ ‐ ‐ ‐
14 Miscellaneous Fees and Special Assessments 53 ‐ ‐ ‐ ‐ ‐ ‐
15 Licenses, Permits, and Franchises 87 85 85 85 85 85 85
16 Long‐Term Debt Proceeds1 46,556 31,132 31,132 ‐ ‐ ‐ ‐
17 Other General Government Revenue2 (945) 80 84 84 84 84 84
18 Impact Fees 3,826$ 1,190$ 600$ 600$ 600$ 600$ 600$
19 Impact Fees3 3,826 1,190 600 600 600 600 600
20 Expenditure by Category 52,840$ 89,819$ 23,028$ 23,784$ 29,192$ 23,290$ 32,887$
21 Capital Asset Expense4 41,240 76,988 9,305 3,631 8,090 1,689 10,761
22 Debt Services 1,380 1,381 1,382 7,006 7,099 7,090 7,088
23 General Government 2,368 2,574 3,104 3,570 4,105 4,311 4,526
24 Operations 2,668 3,632 3,746 3,850 3,995 4,115 4,239
25 Salaries and Benefits 5,184 5,245 5,491 5,727 5,903 6,085 6,273
26 Expenditure by Function 52,840$ 89,819$ 23,028$ 23,784$ 29,192$ 23,290$ 32,887$
27 Wastewater Admin and Eng 2,746 2,837 2,965 2,889 2,959 2,983 3,036
28 Wastewater Collection 4,506 22,009 10,337 4,866 7,199 2,903 8,023
29 Environmental Programs 265 282 319 326 336 386 427
30 Water Resource Recovery 41,607 60,290 4,960 4,955 7,429 5,481 9,593
31 Utility Billing 272 310 324 346 356 367 378
32 Water Quality Lab 698 922 864 844 870 897 924
33 General Government 2,368 2,574 3,104 3,570 4,105 4,311 4,526
34 Non Departmental5 378 595 154 180 35 59 76
35 SRF Loan ‐ ‐ ‐ 5,809 5,903 5,903 5,903
36 Change in Financial Position 16,832$ (36,892)$ 30,161$ (2,385)$ (7,048)$ (362)$ (9,261)$
37 Working Capital ‐Beginning 35,237 47,774 10,603 40,072 36,967 29,749 29,218
38 CALPERS Additional Pmt 280 280 692 721 169 169 169
39 Working Capital ‐ After CALPERS6 47,774$ 10,603$ 40,072$ 36,967$ 29,749$ 29,218$ 19,787$
40 Operating Reserve (20%)2,320 2,566 2,745 4,031 4,221 4,320 4,425
41 Rate Stabilization (5%)969 932 966 1,003 1,040 1,079 1,114
42 Other Reserves (i.e. UFL Trust Fund, SRF Loan)3,134 3,134 6,087 6,087 6,087 6,087 6,087
43 Unreserved Working Capital Year End 41,352$ 3,971$ 30,274$ 25,846$ 18,401$ 17,731$ 8,161$
4Includes carryover balances for multi‐year CIP projects.
5Non‐Departmental includes staffing contingencies, miscellaneous CIP expenditures, and assigned project balances.
6Working Capital reflects audit adjustments.
2023‐25 Financial Plan
in thousands
3Impact fees are separated from other sewer revenues because they are restricted to activities compliant to AB 1600 (Government Code §§ 66000 et
seq), and cannot be used for general sewer operations.
1This includes the State Revolving Fund Loan for the Water Resource Recovery Facility upgrade. The City anticipates that loan repayment will begin July
2Other General Government Revenue includes a fair market adjustment for investments.
Table B-29: Sewer Fund Five Year Forecast
Financial Plan Page 292 Page 704 of 954
Operating Budget Wastewater Admin & Eng
Sewer Fund Utilities
Wastewater Administration & Engineering
Program Description
The Wastewater Administration & Engineering Program leads, evaluates, and provides guidance and
direction for effective resource management for the various wastewater programs. It provides strategic and
long-term planning and engineering for wastewater systems, production of recycled water, and water
quality laboratory, stormwater, and environmental programs sections. The program goals are 1) efficient
management and achievement of wastewater enterprise objectives; 2) well-planned and efficient delivery
of capital improvement plans; and 3) protection of environmental and public health by maintaining water
quality objectives.
Core Services & Objectives:
Monitor Sewer Enterprise Fund financial operations and recommend rates and revenues
needed to support program and service objectives.
Continue implementation and tracking of strategic planning activities.
Ensure compliance with water quality regulations.
Continue safety assessments and ensure compliance with safety regulations.
Continued optimization of program operations.
Administer capital improvement and planning activities.
Manage wastewater-related public outreach and communication efforts.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,140,283 $999,543 $1,228,834 23% $1,290,622 5%
Contract Services $23,801 $53,500 $19,200 -64%$46,200 140%
Other Operating Costs $202,245 $337,902 $335,302 -1%$354,653 6%
Total Program $1,366,330 $1,390,945 $1,583,037 14% $1,691,475 7%
Opportunities and Challenges
In 2023-25, Wastewater Administration and Engineering will continue to focus on supporting housing and
climate action Major City Goals as it strategically replaces infrastructure, accommodates risk associated
with growth through capacity studies, assesses program workflows to identify areas for increased
efficiency, and explores additional energy efficiency measures including additional on-site self-generation
of power at the Water Resource Recovery Facility (WRRF). The Water Quality Lab and Environmental
Programs will continue to see increased focus as stormwater and wastewater regulations become more
stringent, and new regulatory permits are issued. The Water Quality Lab will continue to seek insights
from wastewater surveillance, including but not limited to COVID-19 infection rates. Collaboration with
other City departments and regional partners will be crucial in completing goals, regulatory requirements,
studies, and projects of the Wastewater Division.
Table B-30
Financial Plan Page 293 Page 705 of 954
Operating Budget Wastewater Collections
Sewer Fund Utilities
Wastewater Collections
Program Description
The Wastewater Collections program is responsible for delivering wastewater from its various commercial
and residential sources to the Water Resource Recovery Facility (WRRF) via nine pump stations and 148
miles of gravity sewer mains. The program goals are: 1) to operate the wastewater collection system to meet
all Federal and State regulatory requirements; 2) provide uninterrupted wastewater flow without health
hazards, leakage, or groundwater inflow/ infiltration (“I/I”).
Core Services & Objectives:
Evaluate and optimize the sewer main maintenance and hydro-cleaning program.
Evaluate the operation and maintenance of the sewer lift stations.
Complete the wastewater collection main replacement capital improvement projects.
Continue Closed Circuit Television (CCTV) sewer main inspections and prioritize structural
condition ratings.
Continue to optimize and update the Infrastructure Renewal Strategy Plan.
Continue to implement program recommendations to reduce inflow/ infiltration (I/I), including
voluntary and offset lateral replacements.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,112,090 $1,037,685 $1,182,329 13% $1,234,283 4%
Contract Services $48,557 $51,235 $67,465 32% $44,150 -35%
Other Operating Costs $174,701 $242,107 $236,958 -2%$260,001 10%
Total Program $1,335,349 $1,331,027 $1,486,752 12% $1,538,435 3%
Opportunities and Challenges
The Wastewater Collections section continues to identify and address I/I in the city-owned sanitary sewer
system and the public and private (laterals) wastewater collection system. I/I may result in spills, and
regulatory violations that harm water quality, threaten human health, limit capacity in the City’s
wastewater collection system, and result in significant increases in electrical and chemical usage at the
WRRF. A second wastewater collection system flow study and corresponding Infrastructure Renewal
Strategy (IRS) project will begin in late 2023 to provide an updated comprehensive understanding of
system issues, focus staffing resources, and inform future capital projects.
Ongoing I/I programs, such as the offset and lateral rebate programs and ongoing Flow Study/IRS project,
will help accommodate infill and new housing projects and will reduce power and chemical consumption
to meet the City’s Major City Goals related to Housing and Climate Action.
Table B-31:
Financial Plan Page 294 Page 706 of 954
Operating Budget Wastewater Collections
Sewer Fund Utilities
With ongoing system impacts associated with climate change, and as ratepayers continue to reduce water
consumption, lower wastewater collection system flows and increased root intrusion into system sewer
laterals present challenges such as blockages and potential sewer overflows. Staff has implemented a
novel artificial intelligence-based software pilot designed to review inspection and maintenance records
to provide refined maintenance and capital improvement project recommendations. Staff is also pursuing
research partnerships to explore decentralized wastewater treatment solutions that may help reduce
operating expenses at the WRRF, and reduce blockages, odors, and corrosion in the collection system.
During the January 2023 storms, the Calle Joaquin Lift Station flooded, and experience a power outage.
While the damage was minimized to redundant equipment, staff were strained from the event which
required traffic control, temporary bypass and power provisions.
Financial Plan Page 295 Page 707 of 954
Operating Budget Environmental Programs
Sewer Fund Utilities
Environmental Programs
Program Description
The Environmental Programs section is responsible for ensuring compliance with various aspects of the
Clean Water Act. This involves the coordination, planning, development, and implementation of mandated
industrial pretreatment and stormwater programs. Industries are permitted and inspected to ensure
industrial waste discharges do not harm the wastewater collection system, treatment processes at the
WRRF, or Utilities department staff. Environmental Programs is also responsible for the administration of
the City’s stormwater program which protects local waterways from construction site run-off, commercial,
residential, and municipal activities. The Program goals are:
Full compliance with State, Federal, and local pretreatment and stormwater regulations.
Protection of the environment, human health, and wastewater facilities from damage or injury
caused by illegal discharge of regulated pollutants.
Ensuring wastewater effluent and biosolids can be safely recycled and the prevention of harmful
discharges to the City’s sanitary sewer system.
Protection of local waterways.
Inspection of industrial users and stormwater discharges.
Implementing the Stormwater Management Plan, WRRF Industrial Stormwater Plan, best
management practices, and reporting requirements.
Core Services & Objectives
Implement all Best Management Practices related to the Municipal Stormwater Program,
Industrial Stormwater Program, and Industrial Wastewater Pretreatment Program.
Implement the WRRF Industrial Stormwater Pollution Prevention Plan to reflect changes in
General Industrial Permit.
Implement Wasteload Allocation Attainment Plan for Pathogen TMDL.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $217,190 $213,187 $234,556 10% $246,227 5%
Contract Services $13,534 $40,050 $51,550 28% $46,800 -9%
Other Operating Costs $33,212 $29,000 $33,000 13% $33,000 0%
Total Program $264,536 $282,237 $319,106 13% $326,027 2%
Table B-32:
Financial Plan Page 296 Page 708 of 954
Operating Budget Environmental Programs
Sewer Fund Utilities
Opportunities and Challenges
Future challenges include the implementation of the State’s revised Municipal Stormwater General permit
anticipated to include significant additional requirements and changes. The new permit is expected to be
released in 2023. Additional administration, permitting, and inspections will be required to meet the
current and future requirements of the stormwater program for construction and municipal activities
along with industrial and commercial facilities. The City will modify documentation and workflows to meet
the current requirements and future changes.
Environmental Programs has implemented a facility management software program to transition from its
paper-based tracking system to better track permitted industries and required inspections in its
Pretreatment program. For the Stormwater program, the implementation of software modules for
commercial/industrial inspections, post-construction, structural BMPs, and illicit discharge is ongoing.
The program will be increasing outreach relating to an expanded fats oils and grease (FOG) municipal
code, which aims to reduce blockages in the wastewater collection system resulting from improperly sized
or maintained FOG collection equipment in commercial kitchens. This FOG, which should be collected and
not deposited into the City maintained sewer system, can result in blockages and sewer overflows.
Financial Plan Page 297 Page 709 of 954
Operating Budget Water Resource Recovery Facility
Sewer Fund Utilities
Water Resource Recovery Facility
Program Description
The WRRF receives an average of 3 million gallons of wastewater per day. Through a series of biological and
mechanical processes, this flow is converted, daily, into 200,000 gallons of recycled water, 2.8 million gallons
of water to support aquatic life in San Luis Obispo creek, 3 MWh of renewable electricity, and 8 tons of
biosolids ready for composting. Each resource is regulated at the local, State, or Federal level, and
compliance is executed by WRRF Staff. Program goals are as follows:
•Protecting public and environmental health by treating and discharging water that continuously
meets all State and Federal standards.
•Beneficial reuse of biosolids that continuously meet all State and Federal standards and harness
biogas for on-site electrical generation.
•Treating and delivering recycled water to the recycled water distribution system.
•Continuous compliance with local air quality regulations.
•Continual learning, experimentation, and optimization of operating and treatment processes.
•Creating and maintaining safety and emergency response programs that meet all State and Federal
requirements.
•Promoting awareness of the WRRF through community outreach, education, and volunteer training
programs.
Core Services & Objectives
•Provide a variety of safe, renewable resources that adhere to all applicable regulations.
•Promote a culture of learning to maintain a team on the industry’s cutting edge.
•Explore and implement initiatives through Capital Improvement Projects that address a changing
climate.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $2,045,741 $1,887,954 $2,145,190 13% $2,227,344 3%
Contract Services $308,523 $412,616 $568,490 37% $662,586 16%
Other Operating Costs $1,560,344 $1,881,895 $1,946,298 3% $1,940,186 0%
Total Program $3,914,609 $4,182,465 $4,659,977 11% $4,830,115 4%
Table B-34:
Financial Plan Page 298 Page 710 of 954
Operating Budget Water Resource Recovery Facility
Sewer Fund Utilities
Opportunities and Challenges
The Water Resource Recovery Facility (WRRF) is nearing the completion of facility-wide construction. In
the years to come, the facility will be primarily focused on meeting new regulatory requirements and
capitalizing on new opportunities provided by the upgrade. To achieve this, the WRRF staff will be
dedicated to developing various software platforms that will be essential for the efficient and effective
operation of the facility. Regulatory compliance will involve working closely with organizations such as the
Air Pollution Control District, the State Water Resources Control Board, and the Division of Drinking Water.
The WRRF is committed to addressing climate change and fiscal responsibility by leveraging new
treatment processes that produce additional biogas which can be converted into electricity to offset
operating costs and plans to build a second cogeneration system in 2023-24. Staff will also continue to
research emerging technologies that can recover additional resources such as commercial-grade
fertilizers from biosolids.
Diversity, equity, and inclusion are also top priorities for the WRRF program. As part of its efforts to
promote diversity, the facility will maintain its internship program, which offers interested individuals the
opportunity to gain the requisite 1800 hours of Operator-in-Training hours before obtaining Operator
Certification.
To support the City’s housing goals, staff will maintain the increased treatment capacity of the facility to
meet and be prepared for additional flows and loading projected in the City’s General Plan. By increasing
efficiencies, the facility will be better able to allocate resources to support its long-term goals and meet
the needs of the community.
Due to the January 2023 storms, the WRRF experienced increased significant increases in flows into the
plant. This was a result of the heavy rainfall which indirectly entered an aging private and public
wastewater collection system, and through manholes in flooded streets.
Financial Plan Page 299 Page 711 of 954
Operating Budget Water Quality Lab
Sewer Fund Utilities
Water Quality Lab
Program Description
The Water Quality Laboratory (WQL) is an Environmental Laboratory Accreditation Program (ELAP) State
certified laboratory that performs sampling and/or analyses in support of City services including wastewater,
biosolids, recycled water, groundwater, drinking water, San Luis Obispo Creek watershed, and protecting
public health. The WQL operates under regulations as defined in Title 22 of the California Code of
Regulations ensuring compliance with Federal, State, and local regulations, ELAP, and National Pollutant
Discharge Elimination System (NPDES) permit guidelines with other directive documents.
Core Services & Objectives
Laboratory Analyses and Sampling. Providing analysis and sampling in support of City services.
Analyzing untreated and treated drinking water supplies, wastewater, recycled water, new
construction, drinking water line repairs, surface waters, and biosolids which are used for process
control, permit compliance sampling, and protecting public health. Investigation and analysis of
special projects as they arise.
Participation in ELAP. Participating in ELAP certification allows the City to perform its analysis for
certain constituents, allowing for self-reporting to regulatory agencies. ELAP allows the City to
streamline sample turnaround and reduces analysis costs.
Community Outreach. Participating in community-based facility tours, and internship programs
that enhance relationships and communication between the City, students, community
organizations, Cal Poly and Cuesta College.
Reporting and Record-keeping. Preparing and submitting reports to local, State, and Federal
regulatory agencies monthly and annually for the WRRF, Water Treatment Plant, and Stormwater
program. Maintaining comprehensive files, records, reports, and computer databases.
Special Projects. Providing analysis, sampling, and documents in support of Utilities’ special
projects and internal WQL projects such as negotiating the WRRF NPDES permit, WRRF nutrient
loading and removal, onboarding new processes of the WRRF Upgrade, storage and generation
of electronic reports, and optimization of the WRRF and Water Treatment Plant.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $559,481 $552,663 $597,330 8% $623,164 4%
Contract Services $60,192 $192,230 $173,490 -9%$126,510 -27%
Other Operating Costs $78,003 $87,592 $95,877 9% $97,227 1%
Total Program $697,677 $834,485 $866,697 4% $846,551 -2%
Table B-35::
Financial Plan Page 300 Page 712 of 954
Operating Budget Water Quality Lab
Sewer Fund Utilities
Opportunities and Challenges
The lab has expanded its role in conducting additional sampling for the Water Treatment Plant, conducting
wastewater COVID-19 surveillance and sampling in partnership with the CDC, and with the State-required
San Luis Obispo Creek pathogen sampling.
The lab will be a key resource for sampling, analysis, studies, and reports for the WRRF project as the City
validates new processes and provides reports and samples to determine if it meets the specifications and
requirements of regulatory agencies. These support services will also be critical in assisting WRRF staff in
determining the most efficient operating methods that may reduce operating expenses.
Financial Plan Page 301 Page 713 of 954
Water & Sewer
Utilities Revenue
Operating Budget
Water & Sewer Funds
Utilities Revenue
Program Description
The Utilities Revenue Program is responsible for the accurate and timely collection of revenues that support
the City's water and wastewater programs. It provides the customer interface for billing inquiries and service
requests as well as account auditing and data analysis that supports other Utilities programs. The Utilities
Revenue program is funded through water and sewer fund rates and fees, with each fund generally covering
50 percent of program costs. In some circumstances Utilities Revenue collection operations are driven more
predominately by one fund versus the other. In these cases, costs may be split accordingly, with each fund
providing revenue for the expenses occurred on its behalf.
Core Services & Objectives
Provide exceptional, respectful service.
Responsible for collection of 90% of all water and sewer revenue.
Proactively manage utility meter reading contract and continually maintain the water meter
database.
Conduct accurate and timely monthly water and sewer billing and daily payment collection.
Maintain programs designed to reduce past-due payment and associated service terminations.
Monitor usage trends and analyze water use data for use in multiple studies and reports.
Maintain awareness of and compliance with applicable regulations related to utility service.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $203,629 $189,807 $205,796 8% $210,268 2%
Contract Services $207,823 $223,460 $230,067 3% $246,780 7%
Other Operating Costs $126,643 $204,900 $212,987 2% $234,898 10%
Total Program $538,096 $618,167 $648,850 5% $691,946 7%
Opportunities and Challenges
During 2023-25, the Utilities Revenue Program will continue to expand its new rate assistance program.
Expansion of this program will allow more customers to qualify for a 15% discount on their monthly water
and sewer bill. The program is compliant with Proposition 218 because it will be funded by customer late
charges, not from water and sewer rates for service. The Utilities Revenue program will also continue to
monitor past due customer balances and strategize ways to incentivize payment.
Table B-36:
Financial Plan Page 302 Page 714 of 954
Solid Waste & Recycling
Operating Budget
General Fund
Solid Waste & Recycling
Program Description
The Solid Waste & Recycling program coordinates the planning, development, and implementation of
programs and services related to solid waste, recycling, organics recycling, zero waste, and other waste
diversion programs. The program is funded by AB 939 funding collected through the solid waste bills.
AB939 funds may only be used to pay for activities that divert waste from the landfill. Any funds remaining
at the end of the year must remain within the Solid Waste program budget. The program goals are to:
Core Services & Objectives
Increase organics recycling to reduce greenhouse gas emissions and create a local source of
renewable energy.
Promote the use of reusable items to reduce solid waste generation and embedded energy costs
of material production and transportation.
Partner with the San Luis Obispo County Integrated Waste Management Authority (IWMA) to
provide regional solid waste and household hazardous waste collection, recycling education and
outreach programs, school education, and other special programs to the community.
Ensure adequate and efficient solid waste, recycling, and organics services are provided to
businesses and residents within the City of San Luis Obispo at rates that comply with Proposition
218.
Take the lead on meeting Climate Action Plan waste diversion-related goals in coordination with
the Office of Sustainability.
Develop and implement programs to ensure the regulatory compliance with local, State, and
federal legislation.
Program Budget Changes
Table B-37: Solid Waste SOBC 2023-24 2024-25
Rate Manual Updates through IWMA (One-time):
IWMA has taken the lead on updating the rate manual. This is
recommended to optimize pooled regional resources for program goals.
$15,000 $0
Total Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $158,140 $270,946 $276,375 2% $293,573 6%
Contract Services $24,323 $10,000 $45,500 355% $21,500 -53%
Other Operating Costs $3,381 $36,510 $34,584 -5% $34,584 0%
Total Program $185,845 $317,456 $356,458 12% $349,657 -2%
Table B-39:
Financial Plan Page 303 Page 715 of 954
Solid Waste & Recycling
Operating Budget General
Fund
Opportunities and Challenges
The Solid Waste & Recycling program is a key component to the City’s Climate Action Plan Major City Goal.
In coordination with the IWMA and the waste hauler, the program implements the State’s most extensive
solid waste law of the past 30 years (Senate Bill 1383) which prescribes actions the City will take to reduce
California’s landfilled organic waste by 75 percent by 2025.
In 2023-2025, the program will continue to implement priorities aligned with SB1383, as well as other
internal initiatives outlined in the Climate Action Major City Goal, Climate Action Plan, and Lead by
Example Plan. This includes the implementation of an SB1383 mandated enforcement program, the
development of benchmark data for the City’s draft Municipal Operations Zero Waste Plan, augmenting
public outreach and education efforts, and completing the roll-out of an organics recycling program for
special events that take place at City facilities, including updating the City’s Special Events Rental Policy.
Financial Plan Page 304 Page 716 of 954
Reservoir Operations
Operating Budget
Whale Rock Fund
Reservoir Operations
Program Description
The Whale Rock Commission is a joint powers authority with five voting members that represent two state
agencies and the City of San Luis Obispo. This commission was formed to build the Whale Rock Reservoir
and sets policy for its operation. The City of San Luis Obispo (City), California Men’s Colony (CMC), and
California Polytechnic State University (Cal Poly) are the actual water users, sharing the costs and benefits
of the reservoir in proportion to their original investment, with the City at 55%, Cal Poly at 34%, and CMC at
11%. The reservoir operations program provides for raw water storage in a 38,967-acre-foot reservoir and
raw water delivery through 18 miles of pipeline and two pump stations. The program goal is safe dam
operation and maintenance, and a reliable, easily treatable supply of raw water for the participating
agencies. The Reservoir Operations budget is inclusive of all costs related to operation of Whale Rock, not
just the City’s proportional share. The City’s proportional share of Whale Rock expenditures is collected
through the Source of Supply budget.
Core Services & Objectives
Collect, store, and pump raw water to member agencies in a reliable, cost-effective manner.
Protect the dam from vandalism and contamination through effective surveillance.
Increase awareness of Whale Rock Reservoir as a community asset. Promote public use of fishing,
biking, and hiking trails. Identify additional recreational activities that do not negatively impact
water quality.
Maintain reservoir infrastructure to maximize lifespan. Manage the capital improvement program
to renew infrastructure and ensure reliability of water delivery.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $695,766 $690,983 $671,319 -3% $693,778 3%
Contract Services $122,129 $143,296 $127,350 -11% $152,350 19%
Other Operating Costs1 $186,945 $474,843 $702,286 48% $757,756 8%
Total Program $1,004,841 $1,309,122 $1,500,955 15% $1,603,884 7%
1 Other Operating costs variance of 48% attributable to increased overhead with electric services accounting for the
larger portion of the variance.
Table B-40:
Financial Plan Page 305 Page 717 of 954
Operating
Budget Whale
Rock Fund
Reservoir Operations
Opportunities and Challenges
During the next budget cycle, staff at Whale Rock Reservoir have several capital projects that will occupy
their time. During this time, the team will go out to bid for construction on the spillway drain repairs
project that was required by the Division of Safety of Dams (DSOD). This project will ensure that the
spillway underdrain system is fully operational, protecting the structural integrity of the earthen dam and
spillway. Additionally, the team will conduct another capital project to repave the existing road that
travels from the Whale Rock office up to the face of the dam. This paving project will ensure that staff and
contractors have safe and continuous access to the face of the dam, intake structure, and spillway.
Much like what has been experienced in the Water and Sewer funds, challenges for the Whale Rock fund
include escalating capital improvement delivery costs and rapidly increasing electricity costs for operation
of the Whale Rock pump stations. Additionally, winter rainfall has resulted in minor landslides within
public access areas around the lake and one slide which exposed a small section of the Whale Rock
transmission pipeline. Repair work for these slide areas will largely be conducted by staff and is expected
to be accommodated utilizing existing available operating budget.
Financial Plan Page 306 Page 718 of 954
Stormwater
Operating Budget
General Fund
Stormwater
Program Description
The Stormwater and Flood Control Program maintains storm drain facilities within the City,
coordinates emergency response during storms, and implements the National Pollutant Discharge
Elimination System (NPDES) Permit and City Storm Water Management Plan. The Stormwater
program is funded by the City’s General Fund.
Core Services & Objectives:
A well-maintained storm drainage system that minimizes property damage from flooding.
A creek system maintained to balance conveyance with environmental concerns.
Regularly swept streets to minimize pollution entering storm drains and creeks.
Cost-effective implementation of the City’s Storm Water Management Plan.
Implementation of San Luis Obispo Creek Wasteload Allocation Attainment Plan (WAAP).
Meet State and Federal water quality regulations.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $841,889 $746,848 $847,928 13% $879,998 4%
Contract Services $206,962 $243,325 $235,440 -3% $234,740 -1%
Other Operating Costs $67,078 $93,531 $111,925 20% $112,425 0%
Total Program $1,115,929 $1,083,703 $1,195,293 10% $1,227,164 3%
Table B-41:
Financial Plan Page 307 Page 719 of 954
Page intentionally left
blank.
Financial Plan Page 308 Page 720 of 954
MOBILITY SERVICES DIVISION
In 2019, the City embarked on a multi-phased reorganization to achieve an organizational structure to
best position the City to efficiently meet the needs of its community in the future; and allow for both
effective and efficient governance and operational innovation. The Community Services Group (CSG)
continues to focus on the coordination of four departments – Community Development, Parks and
Recreation, Public Works, and Utilities - under one working umbrella for continued efficiencies and
innovation.
In an effort to continue focusing on staffing structures that provide opportunities for efficiency and
effectiveness, the Public Works Department has combined programs into a new Mobility Services Division
comprised of Bicycle and Pedestrian services (Active Transportation), Parking Services, and Transit
Services. Transit and Parking Services are supported by rates and fees and function as enterprise funds
while Active Transportation as a program consists of a general fund position of the Active Transportation
Manager.
In establishing a Mobility Services Division, the new organizational structure will address urgent needs by
enhancing internal services and collaboration, leverage available resources, address current workload
needs, and enhance customer service experiences. To achieve these improvements, a reorganization of
the programs of Parking, Transit, and Active Transportation allows the Public Works Department
(specifically the Department Head) to have a more focused level of direct reports while providing program
managers a Deputy Director to oversee their programs.
A Mobility Services Division will further the organizational effectiveness of the Transit, Parking, and Active
Transpiration functions under one unified umbrella. The focus of the Mobility Services Division would be
on how community members choose to get from place to place, whether that be work, school, leisure
activities, visiting downtown, or weekly tasks such as grocery shopping.
Financial Plan Page 309 Page 721 of 954
Transit Fund
The Service of Public Transit
SLO Transit is the local fixed-route public
transit operation for the City of San Luis
Obispo. SLO Transit operates 14 vehicles at
peak period, along eight routes within the 23
square miles of the City limits of San Luis
Obispo and California Polytechnic State
University campus. Services operate 363 days
a year. On average, one million rides were
provided annually, pre pandemic. Ridership
demographics reflect a broad cross section of
the community, seniors, persons with
disabilities, Indigent, K-12 and University
Students, Commuters and Visitors. Trips are
routinely taken to access educational, medical, employment, commercial and social opportunities
throughout the service area. Transit services play a vital role, not only as a “safety net” for the public
transportation dependent population, but also addresses climate change issues associated with
greenhouse gases.
2023-25 Financial Plan
Key Assumptions
The Transit Enterprise fund closes out the 2023-25 Financial Plan with a balanced budget. At the end of
the budget cycle, the undesignated fund balance is projected to be approximately $10.8 Million. These
funds are necessary as part of a fiscally prudent operating reserve equivalent to 20% of its operating
budget to help weather any volatility in revenues. Amounts in excess of the 20% reserve will be used as
local “matching” funds or used for transit capital improvement plan projects that do not yet have an
identified federal or state assistance grant.
When preparing the budget, the Transit Program analyzes past funding sources (federal, state, and
contractual agreement with Cal Poly) and ridership trends to forecast revenues. Transit service based on
costs are then matched to revenue forecasts. Generally, bus replacement schedules are based on federally
approved “useful-life” criteria and best-case scenarios for aging vehicles. In addition, the California Air
Resource Board is mandating that all public transportation fleets transition to zero emission buses by
2040. Vehicle replacement depends on the availability of capital funds from discretionary grants from the
state or federal government. With the award from the Federal Transit Administration of American Rescue
Plan-Addition Assistance (ARPA-AA), the City can use ARPA-AA fund for operations and use its federal
formula funds for bus replacements and compliance with the State’s zero emission bus mandate. The
budget prepared for this two-year financial plan follows a “zero based budgeting” approach, considering
each line item and its future needs anew.
As transit agencies are experiencing around the nation in the current post pandemic environment, the
Financial Plan Page 310 Page 722 of 954
Transit Fund
City’s transit program is in the process of restoring service to pre-pandemic level and addressing bus
operator shortages. The preparation of the Short-Range Transit Plan and the Transit Innovation Plan are
document that will assist the City to restore transit services. The City’s use of ARPA-AA funds will address
bus operator shortages by providing sign-on bonuses and other incentives to attract new bus operators.
Historical methodologies used to determine the immediate and forecasted health of the Transit Enterprise
fund have significantly changed. The Transit Program has evaluated the possible long-term impacts of the
pandemic, compiled available data and performed an analysis of past trends to create a conservative and
balanced budget forecast.
At this time, revenues are projected to sufficiently keep pace with escalating costs including some
enhancement of service delivery. However, any significant changes, such as the expansion of the transit
program, will require additional funding sources. During the second year of this Financial Plan, the Transit
program will issue a Request for Proposals to obtain a vendor for Transit Operations & Maintenance.
These costs are assumed to be similar to the existing contract’s cost.
Fund Revenues
Federal funding assistance is provided to SLO Transit in the form of Federal Transit Administration (FTA)
5307 grant funds that can be used for transit service operating and capital expenses. These Federal
resources are available to urbanized areas, with a population of 50,000 or more. The SLO Urbanized area
includes populations of Cal Poly and adjacent county areas to reach the 50,000 population criteria. The
federal share for the funding of any one of these activities is not to exceed 50 percent of operating
expenses or 80 percent of capital expenses of the net project cost. Federal funds account for
approximately 40% of the total operating budget and are projected to continue to grow proportionately
during the next two-year Financial Plan period and five-year outlook. However, unforeseen changes in
federal policy can significantly affect transit funding projections.
The Federal Government recently passed the American Rescue Plan Act (ARPA) which will provide an
additional funding to the City of San Luis Obispo transit program. ARPA has formula and discretionary
components. The City received $898K of formula funds which will be used for the City’s Electric Vehicle
Charging Infrastructure project at the bus yard. The City received $12.3M of discretionary funds for
operating assistance. The discretionary ARPA will fund 100% of net operating cost and incentives that will
attract new bus drivers to the City bus service.
State funding assistance is provided to SLO Transit in the form of the State’s Transportation Development
Act (TDA) funding. TDA is comprised of two sources of funding for transportation programs. The first is
the Local Transportation Fund (LTF) which is derived from ¼ cent retail sales taxes, the second is State
Transportation Assistance (STA) which is derived from the statewide sales tax on diesel fuel. Both funds
are distributed to the regions by the State. San Luis Obispo Council of Governments (SLOCOG) then
allocates this amount regionally to each of the seven cities, the County of San Luis Obispo, and the
Consolidated Transportation Services Agency for the San Luis Obispo region (i.e., RTA). LTF funds are
apportioned according to population for: public transit, street/road improvements and
bikeway/pedestrian facilities. STA funds are formula-based and used for public transit purposes.
Financial Plan Page 311 Page 723 of 954
Transit Fund
TDA funds account for 26% of the total revenue budget for SLO Transit. Based on the 2023 TDA
apportionment, the City will realize an increase of 27% in TDA distribution from the prior year. This
additional TDA funding will help offset the cost of services provided.
State policy requires that annual farebox revenue equal no less than 20% of the total operating budget.
Historically, the Transit Fund has had year-end operating savings that move the ratio above the 20%
minimum. However, the pandemic has caused significant disruption to ridership, causing a noticeable
decrease in farebox revenue. While the State has enacted legislature to forgo the 20% farebox recovery
requirements for the time being, due to the pandemic, the Short-Range Transit Plan and the Transit
Innovation Plan will address strategies to restore service to pre-pandemic levels.
Local revenue, from cash paid fares, pass sales and Cal Poly uses (an agreement with Cal Poly providing a
Transit pass for students), amounts to 20% of the total Transit Fund operating budget. Local revenue from
cash fares will likely continue to be impacted from the long-term effects of the pandemic and subsequent
lower ridership. Provided the unknowns of when ridership will return to its previously numbers, there
remains a need to consider the possibility of a fare increases. Staff will continue to monitor the situation
and make recommendations accordingly.
Table B-41: Current Fair and Pass Cost
Fair Type Fair Cost
Regular $1.50
Senior $0.75
Pass Type Pass Cost
31 Day Regular $40.00
31 Day Student $25.00
31 Day Senior / Disabled $20.00
16 Ride Regular $24.00
15 Ride Senior / Disabled $11.25
7 Day $15.00
5 Day $12.00
3 Day $7.00
1 Day $3.25
Cal Poly plays a considerable role in the generation of local farebox and the overall health of the Transit
Fund. The last four-year agreement expired June 30th, 2016. Staff has secured a two year amendment to
develop a new long-term agreement that will expire on June 30, 2024. For this budget cycle, staff has
used contract amounts from the amendment.
Financial Plan Page 312 Page 724 of 954
Transit Fund
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
State $1,324,408 $2,154,358 $3,170,842 32% $3,265,967 3%
Federal $1,877,362 $11,547,838 $7,571,830 -52%$7,675,985 1%
Local $710,457 $850,000 $990,000 14% $1,050,000 6%
Interest and
Other Revenue -$126,127 $304,313 $22,301 -126%$22,573 1%
Total $3,786,100 $14,856,509 $11,754,973 -26%$11,964,524 2%
State TDA and Federal funding amount reflect current TDA distribution amounts. Funding amounts will
be updated in future budget documents as programmed by SLOCOG as discussed above.
Fund Expenditures
Expenditures for the Transit program fall into five main categories: Purchased Transportation, Fuel and
Maintenance, Overhead/Administration, Cost Allocation and, Capital Improvements.
Purchased Transportation. On July 1, 2016, the City entered into a four-year agreement with First Transit
Inc. for a Transit Operations and Maintenance contract. The contract does allow for up to three one-year
extensions and service cost incrementally increases each year by approximately 3%. The cost projections
in the fund forecast project this as well as changes in vehicle operating hours which is the basis for
reimbursement of services provided.
On July 1, 2019, the City entered the fourth year of the contract. On March 3, 2020 the City Council
exercised the first of three extensions. On May 12, 2021, the City Council exercised the second of three
extensions. On May 3, 2022, the City Council extended the contract for another two years. Staff will seek
another amendment, with Council Approval, to add an additional year to the contract to accommodate
recruitment and on-boarding of the Mobility Services Business Manager (Transit Manager) position. All
amendments to date and proposed, comply with FTA procurement guidelines. Thereafter, the Transit
program will conduct a Request for Proposal to secure a new long-term contract.
Fuel and Maintenance costs historically had been volatile and difficult to predict. Fuel costs have also
seen a recent return to high prices. While the program generally accounts for fluctuations in fuel prices,
any excessively prolonged fuel costs may have negative impacts on the transit budget. While the
introduction of two electric buses in 2023 are anticipated to help reduce the Transit program’s fuel costs,
the offset of energy costs is still unknown. Therefore, staff has maintained the “fueling” line item
consistent until the impacts of electrification of the fleet are known.
Many of the current diesel fleet are approaching the end of their FTA defined “useful-life.” The aging fleet
therefore requires more maintenance and upkeep. The introduction of two electric buses in 2023 are
anticipated to help reduce the Transit program’s maintenance budget only slightly. Six additional electric
buses are starting the procurement process and once received are anticipated to further reduce
maintenance costs.
Table B-42:
Financial Plan Page 313 Page 725 of 954
Transit Fund
Overhead and Administration is the program’s third biggest costs and accounts for the salary and benefits
of the three fulltime transit employees, production and print of transit materials and guides, non-
Purchased Transportation related contracts with various vendors, technology procurements and/or
service agreements, auditing and accounting services, advertisement and public engagement programs,
association fees, training and office supplies and other program related materials. These costs
have been maintained relatively flat.
General Government expenses reimburse the General Fund for the support and expenses incurred in
managing Transit related programs and projects by non-transit City Departments. The Cost Allocation
Plan, which also affects the performance of farebox ratio, is considered a Central Service Cost Allocation
plan by the Federal Transit Administration. This cost is approximately $400,000 in FY 2023-24 and FY
2024-25.
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $334,738 $298,896 $457,758 35% $474,693 4%
Purchased
Transportation
Services
$2,427,829 $3,455,950 $3,683,5971 6% $3,728,597 1%
Other Operating Costs $586,168 $684,513 $1,089,516 37% $1,136,506 6%
Transfers $226,183 $365,544 $463,491 21% $477,396 3%
Capital $83,057 $2,878,157 $4,607,466 37% $3,794,674 -18%
Total $3,657,975 $7,130,279 $10,301,827 31% $9,611,865 -7%
Transit Fund Capital Improvement Plan
Capital Projects will be limited to those projects deemed essential and that can be funded largely from
grants, keeping the local match required to a minimum.
Of those projects, the retirement and replacement of six 2008 diesel buses is essential as they have
reached the end of their useful life and are starting to show their wear, resulting in service failures. Given
the State’s enacted Innovated Clean Transit Fleet Rule and the City’s Climate Action Plan, these buses will
be replaced with zero emission (electric) buses rather than with fossil fueled buses.
Given the considerable cost to purchase electric buses, the Transit program will greatly rely on the award
of discretionary grants sources (i.e., ARPA-AA, VW Grant Funds, Low Carbon Fuel Standard Credits, etc.)
1 The cost to purchase transportation services or the cost of paying the City’s vendor to staff, operate and maintain
the City’s transit services is expected to increase 40% from 2022-23 to 2023-24. This increased cost is assuming
ridership demand in FY 2023-24 matches pre-pandemic levels and increased salary and benefits packages are
successfully negotiated and implemented for SLO Transit drivers.
Table B-43:
Financial Plan Page 314 Page 726 of 954
Transit Fund
and no-cost infrastructure upgrade programs (i.e., PG&E E-fleet Ready Program) in order to complete this
project.
The receipt of $12.3M of ARPA-AA funds will provide operating assistance for the next three years. As a
result, the City’s apportionment of 5307 Federal funds can be used for bus replacement to comply the
states zero emission mandate.
The City of San Luis Obispo Transit Program maintains several capital assets.
1. 17 Revenue Vehicles (vehicles that) and 2 Support Vehicles
2. Operations & Maintenance Facility
3. Bus wash system
4. Transit Center with Sawtooth bays and four deluxe shelters
5. 165 bus stops
Table B-44: CIP Project2 2023-24 2024-25 2025-26 2026-27 2027-28
1 Bus Replacements with EV $2,701,500 $2,226,000 $3,055,110 - $2,145,851
2 Bus Shelter Replacements $90,000 $90,000 $90,000 $90,000 $90,000
3 Downtown Transit Center
Rehabilitation (Transit Fund) - - - $140,000 $1,500,000
4 IT Replacement $10,566 $8,268 $10,719 $2,295 $2,961
5 Parking Lot Maint - Bus Yard - $25,000 $500,000 - -
6 Transit Facility EV Charging
Infrastructure $1,805,400 $1,445,406 $604,800 - $414,000
7 Total $4,607,466 $3,794,674 $4,260,629 $232,295 $4,152,812
Opportunities and Challenges
With the new Mobility Business Manager and completion of the Transit Innovation Plan and the regional
Short Range Transit Plan, the City’s Transit Program can be reinvigorated. Both the plans together will
evaluate new technologies and service models that will improve the overall mobility in the City. These
new innovations may include micro-transit, limited express services, bus rapid transit, signal priority, and
increase in bus frequencies. During the budget cycle, the two major challenges will be service restoration
and ridership to pre-pandemic levels as well as acquiring zero emission buses to meet the State mandate.
Employee Summary
The Transit Program will include the following positions.
Deputy Director of Mobility Services. This full-time position will oversee the Mobility Division of the
Public Works Department that includes Parking Services, Active Transportation, and the Transit programs.
2 Capital Projects are highly reliant on future discretionary grant funding. Projects will not move forward unless
funding is secured. However, in order to apply for funding, Council must approve the projects first.
Financial Plan Page 315 Page 727 of 954
Transit Fund
Any time that this position is engaged with Parking Services or Active Transportation work, the value of
that time will be cost allocated to the appropriate fund using future Cost Allocation Plans. Staff is currently
recruiting for this position.
Mobility Services Business Manager. This full-time position will oversee the transit program and business
functions of the division. Staff is currently recruiting for this position.
Transit Coordinator. This full-time position oversees the operations of the transit program, and
coordinates with internal and external entities for reporting. This position is filled.
Table B-45: Transit Fund 2023-24 2024-25
Transit Operations & Maintenance 3.00 3.00
Deputy Director – Mobility Services 1.00 1.00
Mobility Services Business Manager 1.00 1.00
Transit Coordinator 1.00 1.00
Financial Plan Page 316 Page 728 of 954
(A)
Actual
2021‐22
(B)
Budget
2022‐23
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F)
Projected
2026‐27
(G)
Projected
2027‐28
Revenue
1 Federal ‐ 5307 Operating 1,678,604 2,647,859 1,694,054 1,727,935 1,762,494
2 Federal ‐5307 Preventative
Maintenance 198,609 ‐ 210,765 214,980 219,280
3 Federal ‐ 5307 Capital 4,799,979 3,471,830 3,575,985 3,647,504 3,720,455 3,794,864
4 State TDA (Transportation
Development Act) STA 305,458 359,404 443,547 456,853 470,559 484,676 499,216
5 State TDA LTF 1,018,950 1,794,954 2,727,295 2,809,114 2,893,387 2,980,189 3,069,594
6 State ‐ APCD (Air Pollution Control ‐ ‐ ‐ ‐ ‐ ‐ ‐
7 PG&E Grant ‐ ‐ ‐ ‐
8 Farebox Revenue 172,957 200,000 240,000 250,000 260,000 260,000 260,000
9 Cal Poly Agreement 537,500 650,000 750,000 750,000 772,500 795,675 819,545
10 State ‐ SB1 ‐ ‐ 8,722 8,722 8,722 8,722 8,722
11 State ‐ LCTOP (Low Carbon Transit Ops
Program)‐ 291,000 ‐ ‐ ‐ ‐ ‐
12 ARPA Discretionary ‐ 4,100,000 4,100,000 4,100,000 ‐ ‐ ‐
13 FTA 5339 B Discretionary ‐ ‐ ‐ ‐ ‐ ‐ ‐
14 Interest on Investment 51,618 13,313 13,579 13,851 14,128 14,410 14,699
15 Investment FMV Adjustment (186,365)‐ ‐ ‐ ‐ ‐ ‐
16 Misc Revenue 152 ‐ ‐ ‐ ‐ ‐ ‐
17 State of Good Repair (SGR) 8,468 ‐ ‐ ‐ ‐ ‐ ‐
18 Federal Stimulus Grants 149 ‐ ‐ ‐ ‐ ‐ ‐
19 TOTAL REVENUES $3,786,100 $14,856,509 $11,754,973 $11,964,524 $9,971,619 $10,207,042 $10,448,413
20 Expenditures & Obligations
21 Staffing 334,738 306,115 457,758 474,693 498,428 523,349 549,516
22 Contract Services 2,427,829 2,895,950 3,078,597 3,078,597 3,170,955 3,266,084 3,364,066
23 Fuel 340,952 320,000 350,000 385,000 385,000 385,000 385,000
24 Maintenance 205,794 240,000 255,000 265,000 283,550 303,399 324,636
25 Other Operating Expenditures 39,422 124,513 1,089,516 1,136,506 1,193,331 1,252,997 1,315,647
26 Cost Allocation Transfer to GF 226,183 365,544 463,491 477,396 486,944 496,683 506,616
27 Capital 83,057 2,878,157 4,607,466 3,794,674 4,260,629 232,295 4,152,812
28 TOTAL Expenditures & Obligations: $3,657,975 $7,130,279 $10,301,827 $9,611,865 $10,278,836 $6,459,806 $10,598,294
29 CHANGES IN FINANCIAL POSITION
30 Beginning Fund Balance $2,715,598 $2,823,007 $10,536,682 $11,977,273 $14,317,377 $13,997,606 $17,732,287
31 Revenue Over/(Under) Expenses 128,125 7,726,230 1,453,146 2,352,659 (307,217) 3,747,236 (149,881)
32 Ending Fund Balance before CalPERS $2,843,723 $10,549,237 $11,989,828 $2,352,659 $14,010,161 $17,744,842 $17,582,406
33 CalPERS Additional Discretionary
Payment 20,716 12,555 12,555 12,555 12,555 12,555 12,555
34 Ending Fund Balance $2,823,007 $10,536,682 $11,977,273 $14,317,377 $13,997,606 $17,732,287 $17,569,851
35 Policy Reserve Level ‐ 20%714,984 850,424 850,424 1,163,438 1,203,641 1,245,502 1,289,096
36 Undesignated Fund Balance $2,108,023 $9,686,258 $10,838,401 $13,153,939 $12,793,964 $16,486,784 $16,280,754
2023‐25 Financial Plan
Table B-46: Transit Fund Five Year Forecast
Financial Plan Page 317 Page 729 of 954
Operating Budget Transit Operations & Maint.
Transit Fund Public Works
Transit Operations and Maintenance
Program Description
The Transit Program provides local fixed-route public transit operations within the 23 square miles of the
City and adjacent Cal Poly University.
Core Services & Objectives
Quality transportation for transit dependent people.
Convenient transportation for all community members.
An attractive alternative to driving which can reduce traffic congestion and air pollution.
Activities
Federal grant management
On-Boarding newly delivered electric buses
Procuring six additional electric buses
Preparing the Transit Innovation Plan
Administration.
Vehicle Operations and Maintenance.
Non-Vehicle Maintenance.
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $334,738 $306,115 $457,758 33% $474,693 4%
Purchased Transportation &
Other Costs
$3,013,997 $3,580,463 $4,773,113 25% $4,865,103 1.9%
Total $3,348,735 $3,886,578 $5,230,870 26% $5,339,795 2%
Table B-47:
Financial Plan Page 318 Page 730 of 954
Budget at a Glance
Parking Fund
The Service of Parking
The Parking Services program implements the Access and Parking Management Plan and operates and
maintains the City’s parking lots, on-street metered spaces, parking structures, residential permit parking
districts and timed parking areas throughout the City with focus on the downtown area and residential
neighborhoods. Parking, Active Transportation, Transit, Curb Management (access) and traffic circulation
are interrelated, and the Parking Services program plays an important role in the successful operations of
the City’s transportation systems. The Parking Services Program works with stakeholders including
businesses, residents, other government agencies, and visitors to meet their diverse parking and access
needs. The Program promotes services through direct education, community outreach, engineering, and
enforcement efforts that strive to balance the high demands by providing a variety of transportation and
parking options.
2023-25 Financial Plan
Key Assumptions
When preparing the budget, the Parking Services Program analyzed impacts from past financial standings,
upcoming operational and capital needs, as well as projected future debt obligations to assess the
financial position and overall health of the Parking Fund. The budget prepared for the two-year financial
plan follows a “zero based budgeting” approach, considering each line item and its future needs anew.
Asset conditions, infrastructure age, and future parking capacity needs are driving factors in determining
the Capital Improvement Plan projects and debt financing scenarios. The revenues needed to support
future operations and projects is then evaluated based on current rates and fee structures, analysis of
current parking asset usage, and effects on future revenue potential to provide recommendations.
Consistent with previously adopted policies the Parking Fund’s proposed revenue sources and fee
structure assume a conservative annual growth rate over the entire projection period.
The Parking Fund continues to experience minor impacts from the pandemic while modernization efforts
continue. End of year unreserved working capital is projected to be $2 million, in line with the FY 2021-22
Year End Report projections. The revenue enhancement strategies adopted by Council with the FY 2021-
22 Year End Report provide the Parking Fund the financial resources necessary to secure bond financing
to the Cultural Arts District parking structure.
Financial Plan Page 319 Page 731 of 954
Budget at a Glance
Parking Fund
Minimum working capital reserve should equal at least 20% of the total Operating Program expenditures
according to the City's fiscal policy and fund specific risk assessments. Based upon this policy, the
minimum reserve level should be approximately $921,000 for FY 2023-24 and will increase incrementally
through the Fund’s outer year projections as both expenses and revenues increase.
As an Enterprise fund, Parking can build unreserved working capital in preparation for larger infrastructure
maintenance and replacement needs and smooth rates to accomplish capital investments. Revenue from
the past fiscal year is anticipated to match initial projections. The Fund plans to use remaining working
capital to self-finance the approximately $6.9 million for the Phase 1 costs of the Cultural Arts District
parking structure and may opt to contribute additional capital towards reducing the debt obligation for
Phase 2 of construction costs.
Fund Revenues
As an enterprise fund, the Parking Services Program finances its operations through rates and fees charged
for parking services, property lease income, and one-time incomes such as Parking In-Lieu fee payments.
According to City Fiscal Policies, rates must be sufficient to cover operations, capital asset improvements
and maintenance, debt obligations, and to maintain appropriate reserve levels to keep the fund healthy
and prepared for unforeseen and long-term funding needs.
The revenues needed to support future operations and projects of the Parking Fund has been evaluated
based on current approved rates and fee structures, analysis of current parking asset uses, and effects on
future revenue potential to provide rate adjustment recommendations. Consistent with previously
adopted policies and considering impacts associated with the Cultural Arts District parking structure, the
Parking Fund still assumes a conservative annual growth rate over the entire long-term forecast period.
Table B-49: Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Parking - Lots & Streets $2,210,191 $2,268,500 $4,876,000 115%1 $4,876,000 0%
Parking Structures $999,138 $1,328,450 $3,242,100 144%2 $3,388,400 5%
Long Term Parking $623,639 $844,900 $695,300 -18%3 $766,300 10%
Parking in-Lieu Fees $0 $20,600 $23,824 16% $23,824 0%
Interest Revenue -$348,317 $62,000 $19,900 -68%4 $11,900 -40%
Fines and Forfeitures $928,636 $793,500 $852,100 7% $852,100 0%
Lease Revenue $635,545 $487,800 $456,300 -6% $456,300 0%
Miscellaneous Revenue $115,393 $725,000 $37,800 -95%5 $37,800 0%
Proceeds from Debt
Financing $0 $0 $46,315,169 - $0 -100%
Total $5,164,226 $6,530,750 $56,518,493 765% $10,412,624 -82%
1 Increase due to rate increases.
2 Increase due to rate increases.
3 Decrease due to loss of parking coinciding with construction of the Cultural Arts District parking structure.
4 Decrease due to change in financial position of the Fund in support of financing and because of historical actuals.
5 Decrease due to receipt of $700,000 in one-time State Local Fiscal Recovery Funds (ARPA).
Financial Plan Page 320 Page 732 of 954
Budget at a Glance
Parking Fund
Parking Rates
The Parking Services Program has approved rate increases to hourly paid parking on July 1, 2023 and July
1, 2025 to satisfy debt service obligations associated with the new Cultural Arts District Parking Structure.
Additionally, the Parking fund is required to provide funding for ongoing maintenance and repair to
existing assets. Staff will be returning to Council for authorization to release a Request for Proposal (RFP)
to conduct a rate assessment during FY 2023-24. Staff continue to work with marketing consultants to
communicate the upcoming rate increases to ensure the community is properly notified.
Table B-50: Parking Rates
Parking Hourly Rate Changes Current Parking
Rate
Effective
July 1, 2023
Effective
July 1, 2025
1 Parking Meters Hourly Rate
2 Tier 1 (Super Core) $2.00 $4.00 $5.00
3 Tier 2 (Core) $2.00 $4.00 $5.00
4 Tier 3 (Outlying Areas) $1.50 $3.00 $3.00
5 Parking Structures Hourly Rate
6 Hourly $1.50 $3.00 $3.00
Fund Expenditures
Operating Programs
The Parking Services Program operating costs for the 2023-25 Financial Plan are summarized below. The
primary operating costs for the Parking Fund consist of 1) staffing, 2) contracted services, 3) capital 4)
infrastructure investments, and 5) debt service payments. Indirect costs to the Parking Fund consist of
reimbursement to the General Fund for general government services such as legal and financial services
to support parking programs. These amounts are calculated annually through the City’s Cost Allocation
Plan.
Part-time staffing levels will also continue at a reduced rate due to the gateless modernization efforts in
the parking structures.
Parking -Lots &
Streets
48%
Parking Structures
32%
Long Term Parking
7%
Lease Revenue
4%
Other Revenue
9%
CHART B-48: PARKING FUND REVENUE
Financial Plan Page 321 Page 733 of 954
Budget at a Glance
Parking Fund
Table B-51: Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,574,054 $1,917,920 $1,922,948 0% $2,006,346 4%
Contract Services $786,535 $584,065 $895,746 53%6 $607,661 -32%7
Other Operating Costs $552,351 $623,459 $702,860 13% $694,888 -1%
Transfers $1,105,120 $1,108,209 $1,387,281 25% $1,421,842 2%
Easement Expenses $0 $755,000 $0 -100%8 $0 0%
Debt $855,278 $850,841 $4,195,421 393%9 $4,117,141 -2%
Capital $1,844,160 $8,340,700 $48,594,961 482%10 $1,382,467 -97%
Total $6,717,498 $14,180,194 $57,699,217 307% $10,230,345 -82%
Proposed Changes to Operating Programs
The proposed budget includes a single Significant Operating Budget Change that will review parking fees
and provide a comprehensive assessment of all rates and offered programs to align pricing with program
policies and other city objectives. This enhancement is necessary to ensure that the Parking Fund can
effectively cover the Fund’s debt service even during times of economic uncertainty.
Table B-52: SOBCs 2023-24 2024-25
One-time
Rate Study $ 150,000 $ -
Total $ 150,000 $ -
Capital Improvement Plan (CIP) Projects
The Five-Year Forecast continues reinvestments in the City’s parking assets with annual funding for the
rehabilitation of the three parking structures to extend their useful lives as outlined in the Condition
Assessment and Management Plan (CAMP). The proposed CIP budget, as part of the 2023-25 Financial
Plan, has continued funding for the CAMP report implementation by earmarking $900,000 in FY 2023-24,
$700,000 in FY 2024-25 and $1,000,000 in FY 2025-26 and beyond for structural repairs, waterproofing
and deck sealing maintenances. This work is imperative to guaranteeing the Fund is properly maintaining
its resources and is required to secure a loan for the Cultural Arts District parking structure. Project budget
estimates in the capital plan forecast include inflationary adjustments assuming a moderate increase in
material costs over time. The Fund continues to make infrastructure improvements with the continued
addition of multi-space pay-stations which expands sidewalk mobility and the implementation of mobile
application and gateless parking operations at the structures.
6 Increase due to one-time SOBC for a Parking Rate Study and because of a new security agreement.
7 Decrease due to one-time cost noted above.
8 Decrease due to one-time costs in FY 2022-23 associated with Cultural Arts District Parking Structure project.
9 Increase due to increased debt service for Cultural Arts District Parking Structure.
10 Major variance is due to the one-time anticipated costs to construct the Cultural Arts District Parking Structure estimated at
$47 million.
Financial Plan Page 322 Page 734 of 954
Budget at a Glance
Parking Fund
All operational improvement elements have been proposed to help ensure the Fund is able to meet the
completion goal for the Cultural Arts District parking structure. Currently estimates for the structure are
at $54.9 million with initial work currently underway. A $6.9 million contribution from working capital for
phase 1 that will occur in FYs 2022-23 and FY 2023-24 and $47.5 million from bond financing for phase 2
of construction that will begin in FY 2023-24. The construction phase is estimated to take 18-24 months
with the structure opening for operation during the FY 2025-26 period.
Table B-53: CIP Project 2023-24 2024-25 2025-26 2026-27 2027-28
Cultural Arts District Parking
Structure (Debt) $47,000,000 $0 $0 $0 $0
871 Marsh Maintenance $100,000 $0 $0 $0 $0
842 Palm Maintenance $100,000 $0 $0 $0 $0
General Parking Structure
Maintenance $700,000 $700,000 $1,000,000 $1,100,000 $1,100,000
Enforcement and Gate Entry
Equip $300,000 $0 $0 $0 $0
HVAC Air Handler $230,000 $0 $0 $0 $0
IT Replacement $27,961 $32,467 $31,665 $2,292 $7,612
Fleet Replacement $40,000 $50,000 $0 $0 $0
Parking Pay Station Installation $0 $600,000 $600,000 $600,000 $0
License Plate Recognition $97,000 $0 $0 $0 $0
Total $48,594,961 $1,382,467 $1,631,665 $1,702,292 $1,107,612
Debt Service
Table B-54: Parking Fund Detail and Debt Retirement
The Parking Fund currently has two debt service obligations; one for the construction of the Marsh Street
parking structure expansion that was built in 2002 and one for the construction of the 919 Palm Street
parking structure that was built in 2006. The loan for the Marsh Street parking structure expansion is set
to retire in FY 2031-32 while the loan for the 919 Palm Street parking structure will not be retired until FY
2038-39. The Fund will begin construction on its fourth parking structure in FY 2022-2023. In order to
finance the construction of the Cultural Arts District Parking Structure, the parking fund plans to issue
debt currently estimated at $47 million to be financed over a 30-year period. Staff anticipate receiving
project bids in late June of 2023, which will provide more accurate project and debt costs.
Financial Plan Page 323 Page 735 of 954
Budget at a Glance
Parking Fund
Opportunities and Challenges
With the adoption of the Access and Parking Management Plan (APMP), Parking Services is positioned to
reimagine parking throughout our community. The Plan provides the framework and policy direction to
align the Program with more recently adopted goals and strategies outlined in other City plans. There will
be a substantial work effort to develop new programs and policies that are outlined in APMP during this
financial period. While some of the identified efforts are already underway, much of staff resources are
currently committed to modernization efforts, which will impact the ability to develop new programs.
Parking Services continues work efforts updating our parking structures to newer technology will be a
challenge as the current gate system is outdated. These updates will be costly however this will create
opportunities to increase revenue as it will make the fee collection more reliable as the current system
often has failures which directly impact the revenue stream. Adding an additional parking structure will
increase overall revenue which creates opportunities to better provide services to the community but
faces challenges with finding funding sources to build said structure. Reducing the street parking to
accommodate the Parklet project will impact revenues which is a challenge. There are opportunities to
review fee structures for metered parking which can support the overall operability of the parking fund.
Employee Summary Parking
Within the parking operations and maintenance division there are currently 15 full time positions and 7.6
supplemental positions. The position breakdowns are as follows; 9.6 full time positions within parking
administration, eight (8) full time positions within parking structure operations, and five (5) full time
parking enforcement officers. Additionally, the Parking Services funds a portion of the salary associated
with an engineering position. One (1) full time position will be added to parking structure operations once
the Cultural Arts District parking structure is in operation, but Council action is not required at this time.
Table B-55: Parking Fund FTEs 2022-23 2023-24 2024-25
Parking Operations & Maintenance 19.82 22.82 22.82
Parking Services Manager 1.0 1.0 1.0
Parking Services Supervisor 1.0 1.0 1.0
Parking Meter Repair Worker 1.0 1.0 1.0
Parking Coordinator 0.0 1.0 1.0
Parking Engineer, Inspector .22 .22 .22
Parking Maintenance Worker 2.0 2.0 2.0
Parking Enforcement Officer 5.0 6.0 6.0
Administrative Assistants 2.0 3.0 3.0
Supplemental Staff (1 FTE = 2080 hours) 7.6 7.6 7.6
Financial Plan Page 324 Page 736 of 954
Operating Budget Parking Operations
Parking Fund & Maintenance
PARKING OPERATIONS AND MAINTENANCE
Program Description
The Parking Services program implements the Access and Parking Management Plan and directs the
operation and maintenance of the City’s parking lots, on‐street metered spaces, parking structures,
residential permit parking districts and timed parking areas.
Objectives
Promote economic and social vitality in the downtown core.
Implement the Conceptual Physical Plan for the City’s Center
Provide enough parking in the commercial core for visitors and employees.
Reduce parking demand.
Implement the transportation strategy presented in the General Plan Circulation Element
Activities
Compliance/Enforcement
Parking Fund Revenue Management
Structure Operations
Parking Management and Demand Reduction
Program Budget
Table B-56: Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,574,054 $1,917,920 $1,922,947 0% $2,006,347 4%
Contract Services $786,535 $584,065 $895,746 53%11 $607,661 -32%
Other Operating Costs $552,351 $623,458 $702,860 13% $694,888 -1%
Total $2,912,940 $3,125,444 $3,521,553 13% $3,308,896 -6%
11 Increase due to one-time SOBC for a Parking Rate Study and because of a new security agreement.
Financial Plan Page 325 Page 737 of 954
Table B-57: Parking Fund Five Year Forecast
Financial Plan Page 326
(A)
Actual
2021‐22
(B)
Budget
2022‐23*
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F) Proje
2026‐27
(G) Proje
2027‐28
REVENUES
1 Service Charges
2 Parking Meter Revenues 2,210,191 2,268,500 4,876,000 4,876,000 5,688,700 5,688,700 5,688,700
3 Parking Structure Collections 999,138 1,328,450 3,242,100 3,388,400 3,655,700 3,655,700 3,667,300
4 Long‐Term Parking Revenues 623,639 844,900 695,300 766,300 768,800 743,500 759,500
5 Lease Revenues 635,545 487,800 456,300 456,300 456,300 456,300 456,300
6 Parking In‐Lieu Fees ‐ 20,600 23,824 23,824 23,824 23,824 23,824
7 Total Services Charges 4,468,514 4,950,250 9,293,524 9,510,824 10,593,324 10,568,024 10,595,624
8 Fines & Forfeitures 928,636 793,500 852,100 852,100 852,100 852,100 852,100
9 Interest on Investment (348,317) 62,000 19,900 11,900 12,100 17,900 22,800
10 Transfer in from GF (ARPA) 700,000
11 Other Revenues 115,393 25,000 37,800 37,800 54,200 43,300 45,100
12 TOTAL REVENUES 5,164,226 6,530,750 10,203,324 10,412,624 11,487,924 11,470,124 11,501,024
13 Proceeds from Debt Financing** 46,315,169
14 TOTAL REVENUES INCL. DEBT FINANCING 5,164,226 6,530,750 56,518,493 10,412,624 11,487,924 11,470,124 11,501,024
15 EXPENDITURES
16 Staffing 1,574,054 1,917,920 1,922,948 2,006,346 2,092,534 2,182,721 2,279,268
17 Contract Services 786,535 584,065 895,746 607,661 619,814 632,211 644,855
18 Other Operating Expenditures 552,351 623,459 702,860 694,888 738,601 799,681 867,973
19 General Government (CAP) 869,887 872,976 1,019,048 1,049,619 1,102,100 1,157,205 1,215,066
20 Operating Transfers Out 235,233 235,233 368,233 372,223 376,333 380,566 384,926
21 Total Operating Expenditures 4,018,060 4,233,653 4,908,835 4,730,737 4,929,382 5,152,384 5,392,087
22 Easement Expenses (one‐time)‐ 755,000 ‐ ‐
23 Capital Improvement Plan Projects 1,844,160 8,340,700 48,594,961 1,382,467 1,631,665 1,702,292 1,107,600
24 TOTAL DEBT SERVICE**855,278 850,841 4,195,421 4,117,141 4,038,829 3,960,482 3,882,099
25 TOTAL EXPENDITURES 6,717,497 14,180,195 57,699,217 10,230,346 10,599,876 10,815,158 10,381,786
CHANGES IN FINANCIAL POSITION
26 BEGINNING FUND BALANCE 11,585,166 9,931,200 3,287,929 2,061,818 2,179,200 3,067,152 3,722,019
27 Revenue Over/(Under) Expenses ($1,553,271)($7,649,445)($1,180,724) 182,278 887,952 654,867 1,119,160
28 ENDING BALANCE/WORKING CAPITAL
BEFORE CALPERS ADP 10,031,895 2,281,755 2,107,206 2,244,096 3,067,152 3,722,019 4,841,178
29 CalPERS ADP 100,654 61,896 45,388 64,896 64,896 64,896 64,896
30 9,931,241 2,219,859 2,061,818 2,179,200 3,067,152 3,722,019 4,841,178
31
ENDING BALANCE/WORKING CAPITAL
Policy Reserve Level ‐ 20% 839,582 882,350 990,725 954,091 992,776 1,036,300 1,083,132
32 CalPERS 115 Trust Fund 61,003 61,003 61,003 61,003 61,003 61,003
33 UNRESERVED WORKING CAPITAL 9,091,658 1,276,506 1,010,090 1,164,106 2,013,373 2,624,716 3,697,043
2023‐25 Financial Plan
* Includes budget adjustments made throughout the year
**Debt service number for FY 2023‐24 and beyond also includes the anticipated debt payment for CAD‐PS which Council will take action on at a later date.
Page 738 of 954
Operating Budget
TBID Fund Tourism & BID Promotion
Tourism Business Improvement District Promotion
Program Description
The City established a Tourism Business Improvement District (TBID) as requested by the local
lodging industry in 2008. The district levies an assessment on all lodging properties for the
purpose of tourism promotion for the benefit of the district’s constituents. The assessment is a
special revenue and is administered in a separate and distinct fund.
Objectives
Continue diverse marketing efforts to promote overnight stays in San Luis Obispo.
Actively participate in local, regional and state organizations such as Visit SLO CAL, Central
Coast Tourism Council, Downtown SLO, and other tourism organizations.
Activities
Perform comprehensive tourism marketing efforts across paid, owned and earned
channels.
Promote and sponsor events that attract visitors from outside the County of San Luis
Obispo.
Coordinate with strategic local, regional and statewide tourism partners.
Participate in tourism tradeshows and industry conferences.
Develop, manage and implement the City’s TBID Strategic Plan and Marketing & Business
Plan.
Financial Plan Page 327 Page 739 of 954
Operating Budget
TBID Fund Tourism & BID Promotion
Revenue
The TBID assessment levy was set at 2% of the lodging industry’s gross receipts. For this Financial
Plan the following collection is anticipated:
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Assessment Revenue $2,111,688 $2,122,800 $2,140,800 1% $2,183,616 2%
Program Operating Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $225,734 $219,993 $276,698 26% $289,984 5%
Contract Services $1,317,176 $1,232,968 $1,720,784 40% $1,745,144 1%
Other Operating Costs $61,565 $89,100 $89,100 0% $89,100 0%
Transfers Out $37,867 $34,544 $42,816 24% 43,672 2%
Total Program $1,642,362 $1,576,605 $2,129,398 35% $2,183,616 2%
Major City Goal Contributions
The Tourism Business Improvement District will support the implementation of the Economic Resiliency,
Cultural Vitality & Fiscal Sustainability (ERCV&FS) Major City Goal through the work of the TBID in
positioning San Luis Obispo as an ideal destination to visit. In addition, the TBID will indirectly support
both the Climate Action and DEI Major City Goals through the programs like Key for Trees and DEI
conscious marketing initiatives.
Opportunities and Challenges
While tourism in San Luis Obispo has rebounded incredibly since the pandemic, our market is beginning
to experience a softening in the business primarily during the midweek and shoulder season periods. The
City must remain aware of this adjustment to the market, and the TBID will continue to shift marketing
campaigns, programs and promotions to combat the impacts.
Table 36:
Table 37:
Financial Plan Page 328 Page 740 of 954
Operating Budget
Downtown SLO Downtown SLO Assessment
Downtown SLO Business Improvement District
Program Description
The Downtown Business Improvement District (DBID) was established in 1975 as a parking and
promotions district for the City’s downtown area. As a special fee district, fees are collected from
business license holders operating within the designated area and revenue supports the
operations of Downtown SLO, a non-profit organization. The City and Downtown SLO (DSLO)
agreed by contract that DSLO would provide various services for the economic, social, cultural,
and environmental vitality and beautification of downtown San Luis Obispo . The assessment is a
special revenue and is administered through a separate and distinct fund.
Objectives
Support the vitality of downtown San Luis Obispo
Assist with economic resilience efforts and attract people to shop and dine downtown
Activities
Services such as: events in Mission Plaza; downtown maintenance, plaza activation &
beautification; economic resilience and development.
Special Events. Integral to DSLO’s services is the provision of special events in the downtown.
Those events include:
•Holiday Activities such as the Annual Downtown Holiday Parade, Santa’s House and the
Classic Carousel in Mission Plaza
•Concerts in the Plaza
•Thursday Night Promotions including the Farmers’ Market
Program Budget
The Downtown Business Improvement District assessment is collected annually with the Business
Tax renewal as it is based on the gross receipts of businesses located within the geographical
boundary of the Downtown District.
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Assessment Revenue $222,141 $275,000 $275,400 0.1% $280,900 2%
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Expenditures $227,202 $275,000 $275,400 0.1% $280,900 2%
Table 38:
Table 39:
Financial Plan Page 329 Page 741 of 954
Operating Budget
Boysen Ranch Conservation Fund Boysen Ranch
Boysen Ranch
Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard,
and O’Connor Way. In 2005, the City accepted and currently holds a series of conservation easements
that protect approximately 25 acres at the Boysen Ranch to mitigate for impacts to wetlands and waters
by the Home Depot, Costco, and other Irish Hills Plaza development projects on Los Osos Valley Road.
Boysen Ranch is part of the City’s designated greenbelt. The funding was set up as an endowment to fund
monitoring and maintenance of the restored wetland area.
Objectives
Continue to monitor and maintain the approximately 25 acres of conservation easement area as
part of the City’s greenbelt.
Continue to monitor and maintain the wetland restoration areas.
Monitor the property to ensure adherence to conservation easement terms and successful
recruitment of wetland functions and values.
Program Budget
The Boysen Ranch Conservation Fund projects to earn $2,000 annually in investment and property
revenues.
Table 40: Revenue Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Investment and Property
Revenues $-10,273 $2,000 $2,000 - $2,000 -
Table 41: Expenditures Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 2021-22 2022-23 2023-24
Program Expenditures $11,739 $7,500 $7,500 - $7,500 -
Fund Balance
As of 2021-22 Year End
Boysen Ranch $405,234
The Boysen Ranch Conservation fund balance is restricted for spending on mitigation requirements of the
United States Army Corps of Engineers in order to offset the loss of wetlands and associated habitat that
occurred with the development of Irish Hills Plaza projects on Los Osos Valley Road. The City Council
accepted a series of conservation easements that encumber a portion of Boysen Ranch on Foothill
Boulevard where the required wetland restoration and enhancement activities took place. The funds can
only be used for long-term maintenance and monitoring of the wetland restoration projects, as well as
for the long-term administration of the conservation easements.
Table 42: Fund Balance
Financial Plan Page 330 Page 742 of 954
Operating Budget
Public Safety Equipment Fund
Public Safety Equipment Fund
The Public Safety Equipment Fund (PSEF) was created with the 2019-21 Financial Plan to help budget and
forecast the replacement of Public Safety equipment that has expired or become damaged. The Fund had
received an original seed amount with the 2019-20 budget and, going forward, an annual allocation is
made from the Local Revenue Measure and the General Fund. Budgeting annual amortized amounts set
aside in this project account allows for crucial safety equipment to be replaced at scheduled intervals,
which smooths out the annual contribution, reducing the impact on the budget at time of replacement.
Table 43: Program Budget Changes
SOBC Description 2023-24 2024-25
1
Police
(additional
amount)
Additional funding is being requested for FY 23/24 and 24/25 for
the Police Department'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.
$68,512 $60,323
2
Fire
(additional
amount)
The Fire Department is requesting additional funds for the
Equipment Replacement Fund for FY24, FY25 and ongoing. The
fund has been an invaluable tool to ensure equipment needs are
met at the Fire Department. Funding is planned long term for
large purchases by helping smooth costs over an extended p eriod
eliminating the sudden need to obtain huge sums to cover a
purchase. The funds contributed annually are based on prices
from 2018 when the fund was established. Since then, inflation
has drastically increased prices on most items necessitating an
increase in annual contributions. 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.
The department is consciously attempting to stagger purchases
to spread costs out, however, it is not enough to sustain the fund
and continue the slow, planned purchases of necessary, lifesaving
equipment without increasing the annual contribution.
$102,810 $107,011
Total $171,322 $167,334
Financial Plan Page 331 Page 743 of 954
Operating Budget
Public Safety Equipment Fund
Total Program Budget
dĂďůĞϰϰ͗Revenue Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Transfers In $929,344 $248,380 $391,322 58% $387,388 -1%
dĂďůĞϰϱ͗Expenditures Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Program Expenditures $101,554 $445,978 $112,600 -75%$403,560 258%
Fund Balance
2021-22
Actual
2022-23
Projected
2023-24
Projected
2024-25
Projected
Public Safety Equipment Fund $764,849 $567,261 $845,973 $829,801
dĂďůĞϰ6͗Fund Balance (at year end)
Financial Plan Page 332 Page 744 of 954
Operating Budget Avila Ranch
Community Facilities Districts
Community Facilities Districts
Avila Ranch CFD No. 2017-1
Program Description
A Mello-Roos Community Facilities District was established and approved by City Council on October 24,
2017 (Resolution No 10844) pursuant to section 5.02.1 of the Avila Ranch Development Agreement. The
CFD boundaries are identical to that of the Avila Ranch Development project and located at the northeast
corner of Buckley Road and Vachell Lane and includes up to 720 dwelling units, 15,000 square feet of
office and retail, 18 acres of parks, 53 acres of open space, riparian corridors and farmed agricultural land.
Objectives
•To create a land-secured funding mechanism to fund authorized services of the CFD such as
Maintenance and lighting of parks/ streets/ open space, flood and storm protection, Police
Protection, Fire protection, maintenance, and operation of any real property.
•To create a land-secured funding mechanism to fund authorized infrastructure/ facilities of the
CFD such as parks/ open space, water transmission/ distribution, acquisition/ improvement/
rehabilitation, or maintenance of real property.
•Levy Special Tax through annual property tax roll.
•Fund annual costs of Services and Facilities of the CFD.
Activities
FY 2022-23 was the first year in which there were revenue and expenses associated with the CFD and only
included Special Tax Revenue and a small amount of authorized services related to annual CFD
administration. As development of the project progresses, it is expected that the CFD budget will grow in
order to fund services provided within the CFD boundaries.
Revenue
The sole source of revenue to this Fund is a Special Tax authorized under the Mello-Roos Community
Facilities Act of 1982. Revenue derived from the Special Tax funds 1. authorized services costs which
include CFD administration, maintenance, trash service, water service, sewer service, electrical service,
street sweeping, contingency services, misc. materials/supplies, fire protection and police protection, and
2. development of infrastructure and facilities. FY 2022-23 was the first year in which the special tax was
levied against taxable parcels of the CFD. Revenue from Special Tax Services and Special Tax
Infrastructure/ Facilities will continue to be levied each year per the Rate, Method of Apportionment and
Manner of Collection of Special Tax (RMA). Services Special Tax will be collected indefinitely while
Infrastructure/Facilities Special Tax will only be collected through FY 2035-36.
Financial Plan Page 333 Page 745 of 954
Operating Budget Avila Ranch
Community Facilities Districts
See the footnote below for a description of how these funds will be used in FY 2023-24.
Revenue
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Services Special Tax $0 $145,735 $226,274 55% $466,147 106%
Infrastructure/Facilities
Special Tax $0 $15,154 $23,075 52% $46,623 102%
Total Revenue $0 $160,889 $249,350 55% $512,770 105%
Program Budget/Uses
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Authorized Services1 $0 $145,735 $226,274 55% $466,147 106%
Authorized
Infrastructure/ Facilities2 $0 $15,154 $23,075 52% $46,623 102%
Total Program Budget/
Uses $0 $160,889 $249,350 55% $512,770 105%
1 Authorized Services includes costs associated with Maintenance, Trash Service, Street Sweeping, Water Service,
Sewer Service, Electrical Service, Materials/Supplies, Capital Repairs, CFD Administration, Fire Protection and Police
Protection. For FY 2023-24 $159,500 will be expended on all items noted above, expect for Fire and Police Protection.
$66,774 attributable to Fire and Police Protection will remain in the fund; staff is currently working on a plan to align
CFD revenues with Fire and Police Protection for the Avila Ranch CFD and these funds will be expended in a future
year in support of these services.
2 There are no Authorized Infrastructure/Facilities items budgeted, therefore the $23,075 for FY 2023-24 will remain
in the fund and will be expended as infrastructure/facilities projects are identified.
Table 47:
Table 48:
Financial Plan Page 334 Page 746 of 954
Operating Budget San Luis Ranch
Community Facilities Districts
San Luis Ranch CFD No. 2019-1
Program Description
A Mello-Roos Community Facilities District (CFD) was established and approved by City Council on April
16, 2019 (Ordinance No 1661) pursuant to section 5.02 of the San Luis Ranch Development Agreement.
The boundaries of the CFD are identical to the San Luis Ranch Specific Plan and includes 131.4 acres
approved for up to 580 dwelling units and commercial development, a 200-room hotel, 100,000 square
feet of office space, 150,000 square feet of retail space, 7.8 acres of parks/ open space, and 52.3 acres of
farmed agriculture land.
Objectives
•To create a land-secured funding mechanism to fund construction of authorized facilities of the
CFD such as major road improvements, potable and non-potable water system improvements,
drainage system improvements, wastewater system improvements, solid waste improvements,
park improvements, open space improvements, utilities, and other authorized facilities under the
Mello-Roos Act.
•Authorized to issue up to $25,000,000 in bonds.
•Levy Special Tax through annual property tax roll.
•Fund annual costs of CFD such as administrative expenses, Debt Service payments and costs,
reserve fund for bonds, and Pay-As-You-Go costs.
Activities
CFD bonds were issued in June 2021 in the amount of $19,660,000. In March 2023, Developer requested
additional bond issuance, increasing amount to $25,000,000. The additional bond issuance request is
currently under review. Revenue received in FY 2023-24 is budgeted for debt service costs, City Staff
Costs, Tax Administration Costs, Trustee Costs and Other Authorized Uses. There is no required
maintenance for the development project for Fiscal Year 2023-24. Any excess funds available will be held
to fund pay-as-you-go costs or held by the City to offset FY 2024-25 costs. Similar expenses are expected
for FY 2024-25. Should the need for maintenance expenses arise during FY 2024-25, the Special Tax
Revenue will need to be adjusted accordingly to fully meet obligations of this fund.
Revenue
The sole source of revenue to this Fund is a Special Tax authorized under the Mello-Roos Community
Facilities Act of 1982. The CFD was authorized to begin collecting the Special Tax in Fiscal Year 2018-19.
Fiscal Year 2021-22 was the first year in which the special tax was levied against taxable parcels of the
CFD. Revenue from Special Tax to cover debt service and other administrative expenses will continue to
be levied each year per the Rate, Method of Apportionment and Manner of Collection of Special Tax
(RMA).
Financial Plan Page 335 Page 747 of 954
Operating Budget San Luis Ranch
Community Facilities Districts
Revenue/Fund Sources
Actual Budget 2023-25 Financial Plan
2021-22 2022-233 2023-24 Change 2024-25 Change
Special Tax Revenue $152,848 $594,374 $965,672 62% 989,372 2%
Capitalized Interest $570,287 $392,153 $0 N/A $0 N/A
Total Revenue/ Fund Sources $723,135 $986,527 $965,672 -2%$989,372 2%
Program Budget/Uses
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Debt Service $570,287 $909,700 $929,700 2% $952,450 2%
Staffing $0 $25,500 $26,010 2% $26,530 2%
Contract Services $4,240 $9,550 $9,962 4% $10,392 4%
Other Authorized Uses (pay-as-you
go) $0 $41,777 $0 -100%$0 0%
Total Program Budget $574,527 $986,527 $965,672 -2%$989,372 2%
3 In FY 2022-23 $392,153 Capitalized Interest was expected, however due to miscalculation, the Capitalized
Interest was not available. As a result of the lack of funding, the City levied additional Special Tax in the amount of
$354,276 adjusting total revenue to $948,650 and aligned expenses to revenue by removing pay -as-you go funds
of $41,777. Budget for 2022-23 revised in Dec 2022 and based on $948,650 revenue and expenses. 2022-23
Budget figures reflected in chart above are consistent with the 2022-23 Avila Ranch CFD No. 2017-1 Tax Report.
Table 49:
Table 50:
Financial Plan Page 336 Page 748 of 954
DEBT SECTION
Financial Plan Page 337 Page 749 of 954
Page intentionally left
blank.
Financial Plan Page 338 Page 750 of 954
Financial Plan Overview Debt
Debt
The City of San Luis Obispo is guided by its budget and fiscal
policies when managing its debt. In accordance with the
policy section “Capital Financing and Debt Management”:
•The City’s debt capacity cannot exceed 15% of
General Fund revenues.
•Its direct debt will not exceed 2% of assessed
valuations.
•No more than 60% of capital improvement outlays
will be funded from long-term debt.
Debt should only be incurred for one-time capital expenditures and not for on-going operations.
Borrowing for one-time capital expenditures allows for the cost of the project to be spread over the useful
life of the asset and results in the cost being paid by future beneficiaries as well as current taxpayers.
Debt Management
The City’s bond issues are periodically reviewed by rating agencies to provide insight to the City’s financial
outlook and hence its creditworthiness. The 2018 refinancing of three different lease revenue bonds was
rated by Standard & Poor’s that gave the City an AA rating. The City’s Water Revenue Bonds were also
rated by Standard & Poor’s; in April 2023 the rating was raised from AA- to AA while affirming a stable
outlook.
•The City’s strong operating performance, a moderate long-
term liability burden, strong revenue growth and solid
expenditure flexibility offsetting a constrained revenue
raising environment.
•The City’s gap closing capacity being superior given ample
reserves and moderate revenue volatility.
•Budget management at times of recovery being very strong,
leaving the City well prepared to manage the current period
of economic stress.
•The City’s engagement in thorough and conservative long-
term financial planning with a focus on maintaining
structural budget balance.
•The City maintaining its capital assets with minimal debt
reliance and proactive efforts to pay down its unfunded
retirement liabilities above actuarially determined levels.
AAA
•Extremely strong capacity to meet financial
commitments. Highest rating.
AA
•Very strong capacity to meet financial
committments.
A
•Strong cpacity to meet financial commitments,
but somewhat susceptible to adverse economic
conditions and changes in circumstance.
BBB
•Adequate capacity to met financial
commitments, but more subject to adverse
economic conditions.
BB
•Less vulnerable in the near-term, but faces
major ongoiong uncertainties to adverse
business, financial, and economic conditions.
CCC
•Currently vulnerable and dependent on
favorable business, financial, and economic
conditions to meet financial committments
CC
•Highly vulnerable; default has not yet occured,
but it is expected to be a virtual certainty.
C
•Currently highly vulnerable to non-payment,
and ultimate recovery is expected to be lower
than that of higher rates obliations.
Financial Plan Page 339 Page 751 of 954
Financial Plan Overview Debt
The City’s Current Debt
The City currently holds $176 million in overall outstanding debt in a combination of lease revenue bonds,
State Revolving Fund loans, Infrastructure-Bank loans, and leases. The longest outstanding maturity is to
2052.
In numbers, the City’s debt payments for each of its funds are considered in its long-term financial
assumptions and over the next ten years will amount to:
Year GENERAL PARKING* SEWER WATER Total
2024 1,853,674 852,116 1,382,346 1,870,392 5,958,528
2025 1,768,903 850,609 7,005,933 1,868,807 11,494,252
2026 1,761,529 848,810 7,098,607 1,865,911 11,574,858
2027 1,550,632 745,641 7,090,097 1,855,405 11,241,775
2028 1,550,418 742,858 7,088,453 1,854,858 11,236,586
2029 1,540,008 742,630 7,086,939 1,852,923 11,222,500
2030 1,543,477 741,756 6,469,600 1,864,401 10,619,233
2031 1,142,757 740,233 6,468,162 1,853,539 10,204,691
2032 1,145,940 739,585 6,466,740 1,841,432 10,193,698
2033 1,138,653 334,663 6,465,119 1,827,883 9,766,318
Grand Total 14,995,991 7,338,902 62,621,996 18,555,550 103,512,439
*Current debt only and table will be update as part of the supplemental budget after any bonds and debt schedules
are confirmed for the proposed Cultural Arts District Parking Structure.
The following tables outline by fund: the current debt, the purpose, the outstanding principal, the annual
debt service cost, and the retirement year of the debt. Several smaller debt issues will be paid off in 2024,
but the next significant retirement of debt payments is not scheduled until 2030.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Graph 51: Debt Principal & Interest Payments
GENERAL
PARKING
SEWER
WATER
Table 52:
Financial Plan Page 340 Page 752 of 954
Financial Plan Overview Debt
General Fund Debt Detail and Debt Retirement
Table 53: Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
FY 2024
2012 Refunding Bond (Damon Garcia Sport Fields) $2,415,000 $395,500 2030
2014 Revenue Bond – LOVR Overpass $6,275,000 $420,531 2045
2018 Refunding Bond (919 Palm Street & Dispatch
Center)
$8,904,430 $942,975 2039
2018 Lease – Fire Truck $36,245 $36,533 2024
2014 State Loan – Energy Conservation $46,886 $47,121 2024
Lease – Golf Carts $50,640 $11,014 2028
$17,728,200 $1,853,674
General Fund Debt policy adherence: FY 2024 Revenue $116,174,000
Debt Payments $ 1,853,674
Percentage of Revenue 1.6%
Maximum Allowed 15%
Table 54: Parking Fund Debt Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
FY 2024
2001 State I- Bank Loan - Marsh St. Garage $3,168,631 $413,021 2032
2018 Refunding Bond (919 Palm Street Structure) $4,146,337 $439,095 2039
Total Parking Fund Debt $7,314,968 $852,116
The Fund will begin construction on its fourth parking structure in FY 2022-2023. In order to finance the
capital expenditure, the fund will issue debt for $47.4 million to be financed over a 30-year period.
Because the funding has not yet been secured, it is not included in the table above.
Table 55: Sewer Fund Debt Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
2024
2008 Suntrust Loan $180,000 $183,780 2024
2009 State I-Bank Loan - Farm Lift Station $6,304,106 $551,173 2038
2014 US Bank Wastewater Lease Agreement $3,410,277 $617,160 2029
2018 Refunding Bond (Dispatch Center) $564,485 $30,233 2039
2019 SRF Loan – WRRF Upgrade1 $136,000,000 2054
Total Sewer Fund Debt $146,139,108 $1,382,345
1 As of 4/30/2023, the City had drawn down $74 million of the $136 million loan. Timing of the first
payment is dependent on construction completion timeline.
Financial Plan Page 341 Page 753 of 954
Financial Plan Overview Debt
Table 56: Water Fund Debt Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
2024
2018 Refunding Bond (Dispatch Center) $258,296 $27,353 2039
2018 Refunding Water Bond (Refund 2006 Bonds) $7,860,000 $888,000 2035
2020 State I-Bank Loan – Water Treatment Plant $12,578,253 $955,039 2040
Total Water Fund Debt $20,696,549 $1,870,392
Financial Plan Page 342 Page 754 of 954
CAPITAL IMPROVEMENT PLAN
Financial Plan Page 343 Page 755 of 954
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Financial Plan Page 344 Page 756 of 954
Capital Improvement Program 2023-25
Capital Improvement Plan (CIP)
Purpose of CIP
The CIP and its annual implementation of projects is one of the primary functions of local government.
The Capital Improvement Program (CIP) enables the City to plan, schedule, and finance capital projects to
ensure cost effectiveness and conformance with established plans and policies. The City’s budget process
guides the capital priorities through community input, Council goal setting, Local Revenue Measure
priorities, and the biennially adopted Major City Goal work programs. 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.
Based on the Council determined goals, and balanced with the City’s financial circumstances, the
recommended capital improvement projects total $183 million for the 2023-25 Financial Plan, and $465
million over the five-year plan. City staff will work to ensure that the community is well informed of various
capital projects consistent with the Public Engagement and Noticing Manual with the framework of
Inform, Consult, and Collaborate.
A Note on Unprecedented CIP Circumstances
As Council is aware, the City continues to navigate economic conditions which have proven challenging
on resource availability for capital projects. Cost escalation and supply chain delays has 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 stages of understanding 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.
Financial Plan Page 345 Page 757 of 954
Capital Improvement Program 2023-25
Active and Ongoing Capital Projects
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. As the city adopts the 2023-25 Financial Plan, many active and ongoing capital projects remain
which were identified and funded for activity during prior fiscal years.
In addition to cost estimates and project budgets, it is important to understand the on-going financial
impacts the CIP has on the organization and city resources. While a capital project may be considered
complete, there are often ongoing maintenance or operating costs associated with a given asset. This can
be seen in the need for additional staff or resources to maintain a new park or enhanced street sweeping
with a new roadway or greenway being added to the city’s transportation network. While many CIP’s
create efficiencies, when preparing and implementing the capital plan, staff must be mindful of the long-
term impacts and needs to maintain the City’s infrastructure.
Acknowledgements
A capital budget and planning document takes countless hours of teamwork, collaboration, and patience
to produce. Special thanks to departments involved in developing the CIP as led by Public Works in
partnership with Administration and IT, Community Development, Finance, Fire, Parks and Recreation,
Police, and Utilities. Completing this budget could not have been accomplished without the skill,
dedication, and professionalism of this team.
Special thanks are also due to the CIP Review Committee of Shelly Stanwyck, Greg Hermann, Matt Horn,
Emily Jackson, Aaron Floyd, Greg Avakian, Michael Codron, Chief Scott, and Chief Tuggle. I am also grateful
for the staff who worked on the material and analysis in preparing the CIP including Brian Nelson, Greg
Cleary, Natalie Harnett, Miguel Barcenas, Luke Schwartz, Chris Read, and many others.
Financial Plan Page 346 Page 758 of 954
Capital Improvement Program 2023-25
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, Community Development 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.
Project Prioritization
Because the City’s infrastructure needs often exceed available funding, department staff must prioritize
various projects taking into consideration timing, cost estimates, mandates, and useful life, among many
other factors. With input from the CIP Review Committee and staff across the organization, the CIP
addresses most urgent projects, while planning for future improvements.
The City Council adopted Resolution No. 11159 (2020 Series) which established a goal of community wide
carbon neutrality by 2035, with municipal operations being carbon neutral by 2030. The CIP is a major
factor in reaching these ambitious goals. As a result, staff consider project selection and timing through
the lens of carbon neutrality when possible. This includes projects aimed at reducing energy consumption,
reducing vehicle miles traveled (active transportation), incorporating bikes or electric vehicles into the
city fleet, tree planting, and solid waste management.
Financial Plan Page 347 Page 759 of 954
Capital Improvement Program 2023-25
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, Enterprise Funds, and various special funds. In general, projects that maintain existing
infrastructure are ranked ahead of asset replacement projects, and asset replacement projects are ranked
ahead of building new assets. It is important to note that generally new assets are related to Major City
Goals, community enhancements, 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.
In addition, staff identify needed projects based on factors including, but not limited to:
1.Public input through committees, community groups, community forums and/or budget hearings
2.Legal requirements or mandates
3.Policy direction from the City Council and Major City Goals
4.Best practices, asset useful life, or replacement schedules
5.Studies and assessments, and professional expertise
6.Citywide planning documents or studies; including the Active Transportation Plan, Pavement
Management Plan, General Plan, Climate Action Plan, among many others.
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?
Financial Plan Page 348 Page 760 of 954
Capital Improvement Program 2023-25
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, and given the added burden of storm recovery activities, staff continue to analyze the resources
required to deliver the projects over the two-year and the five-year time horizon. Staff will continue to
work on opportunities to implement the Management Partners Report Recommendations and fine tuning
of Public Works CIP Engineering’s organizational structure, job types, functions, and tools, training, and
methods to align the City’s Capital Improvement Plan with resources available.
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
$35,000
Graph 56: General Fund Capital Expenditures
Financial Plan Page 349 Page 761 of 954
Financial Plan Page 350 Page 762 of 954
Capital Improvement Program 2023-25
CIP Project Categories
The City categorizes CIP projects into broad functional areas that represent the support for fundamental
local government activities. Projects in support of these categories extend the life of existing City assets
such as streets, bike and pedestrian pathways, parks and play equipment, bridges, water and sewer
infrastructure, trees, open spaces and much more. In addition to maintenance of existing assets, there
are some aged assets, such as buildings or city facilities, that may need replacement or substantial
improvements. Less frequent but more significant is design and construction of new projects or new
assets based on community and Council priorities that enhance the overall quality of life in the City.
Financial Plan Page 351 Page 763 of 954
Capital Improvement Program 2023-25
The project revenues for the City and related expenditures are organized by asset replacement, asset
maintenance, and new assets. These revenues and expenditures are made up by a wide variety of funds.
As noted, the LRM is one the most significant contributors to the City’s CIP, but there are numerous
other financial resources that are brought to bear in funding capital projects.
Funds and Funding Sources
The section below provides an overview of the various funding sources and structures that support the
capital improvement plan, including special funds, enterprise funds and more traditional government
funds. Each fund or funding sources serves different purposes, while at times comes with limitations and
restrictions for eligible uses or expenses.
ID Project by Type 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Total 5-Year Total
1 Annual Asset Maintenance 25,105,036$ 21,011,722$ 27,143,198$ 24,754,875$ 34,103,594$ 46,116,758$ 132,118,424$
2 Asset Replacement 25,963,872$ 29,229,434$ 28,890,682$ 13,709,500$ 17,209,351$ 55,193,306$ 115,002,839$
3 New Asset 60,951,260$ 13,028,642$ 102,543,000$ 13,732,000$ 7,667,000$ 73,979,902$ 197,921,902$
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 116,020,168$ 67,269,798$ 162,576,880$ 56,196,375$ 62,979,945$ 183,289,966$ 465,043,165$
Table 57:
Financial Plan Page 352 Page 764 of 954
Capital Improvement Program 2023-25
Financial Plan Page 353 Page 765 of 954
Capital Improvement Program 2023-25
Financial Plan Page 354 Page 766 of 954
Capital Improvement Program 2023-25
Financial Plan Page 355 Page 767 of 954
Capital Improvement Program 2023-25
Financial Plan Page 356 Page 768 of 954
Capital Improvement Program 2023-25
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 includes 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.
The City typically will use a pay-as-you go approach, however, debt issuance may occur with costly projects
that have a long-term useful life. 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.
ID Table 58: 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 Table 59: 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$
Financial Plan Page 357 Page 769 of 954
Capital Improvement Program 2023-25
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 next section presents:
1.Projects by Type – All Funds
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
22%
22%53%
3%
Chart 60: Project by Type: 2023-24
Annual Asset Maintenance Asset Replacement New Asset CIP Reserve
31%
44%
19%
6%
Chart 61: Project by Type: 2024-25
Annual Asset Maintenance Asset Replacement New Asset CIP Reserve
Financial Plan Page 358 Page 770 of 954
Capital Improvement Program 2023-25
CIP Expenditures by Category
Expenditures by Category FY 23-24 FY 24-25
Cultural Services 0.28% 0.45%
Environmental Protection 2.54% 1.34%
Facilities 1.07% 1.39%
Fire Safety 0.17% 0.00%
Governance 0.15% 0.15%
Information Technology 0.99% 2.99%
Multimodal Transportation 57.34% 44.48%
Neighborhood Wellness 3.25% 3.95%
Open Space 0.30% 0.48%
Police Protection 0.00% 0.13%
Recreational Services 1.14% 8.46%
Roadway Infrastructure 6.36% 8.51%
Stormwater 9.27% 5.98%
Utility Services 13.70% 15.75%
CIP Reserve 3.45% 5.95%
ID Project by Category 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Total 5-Year Total
1 Cultural Services 325,000$ 300,000$ 200,000$ 300,000$ 300,000$ 625,000$ 1,425,000$
2 Environmental Protection 2,950,000$ 900,000$ 1,700,000$ 900,000$ 3,850,000$ 6,450,000$
3 Facilities 1,242,000$ 938,178$ 2,933,000$ 6,063,776$ 6,275,000$ 2,180,178$ 17,451,954$
4 Fire Safety 200,000$ -$ 1,200,000$ -$ -$ 200,000$ 1,400,000$
5 Governance 175,000$ 100,000$ 150,000$ 150,000$ 150,000$ 275,000$ 725,000$
6 Information Technology 1,145,500$ 2,011,001$ 2,695,000$ 911,099$ 980,794$ 3,156,501$ 7,743,393$
7 Infrastructure & Transportation -$ -$ 213,772$ 47,500$ 3,000$ -$ 264,272$
8 Multimodal Transportation 66,525,160$ 29,919,406$ 115,743,910$ 12,710,000$ 11,389,851$ 96,444,566$ 236,288,327$
9 Neighborhood Wellness 3,764,972$ 2,655,028$ 3,985,000$ 11,970,000$ 10,357,500$ 6,420,000$ 32,732,500$
10 OpenSpace 345,000$ 320,000$ 420,000$ 320,000$ 470,000$ 665,000$ 1,875,000$
11 Police Protection -$ 90,000$ 350,000$ 482,000$ 1,201,500$ 90,000$ 2,123,500$
12 Recreational Services 1,320,000$ 5,693,642$ 270,000$ 270,000$ 20,000$ 7,013,642$ 7,573,642$
13 Roadway Infrastructure 7,381,994$ 5,725,000$ 8,139,000$ 8,655,000$ 9,705,000$ 13,106,994$ 39,605,994$
14 Stormwater 10,754,000$ 4,025,000$ 1,250,000$ 1,475,000$ 2,275,000$ 14,779,000$ 19,779,000$
15 Utility Services 15,891,542$ 10,592,543$ 19,327,198$ 7,942,000$ 15,852,300$ 26,484,085$ 69,605,583$
16 CIP Reserve 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 8,000,000$ 20,000,000$
17 Grand Total 116,020,168$ 67,269,798$ 162,576,880$ 56,196,375$ 62,979,945$ 183,289,966$ 465,043,165$
Table 62:
Table 63:
Financial Plan Page 359 Page 771 of 954
Capital Improvement Program 2023-25
CIP Expenditures by Fund – All Funds
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 1,177,994$ 1,092,000$ 1,114,000$ 1,136,000$ 1,158,720$ 2,269,994$ 5,678,714$
5 401 - Capital Outlay Fund 40,269,232$ 31,535,166$ 117,935,000$ 40,864,776$ 34,250,280$ 71,804,398$ 264,854,454$
6 Bonds, Infrastructure Loan (Debt)74,900,000$ -$ -$ 74,900,000$
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$ 6,580,000$ 3,700,000$ 2,000,000$ 4,759,302$ 17,039,302$
10 Local Revenue Measure 20,074,670$ 20,850,166$ 27,860,000$ 36,969,776$ 32,055,280$ 40,924,836$ 137,809,892$
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 Replacement 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 Replacement Fund 1,019,028$ 1,596,656$ 2,575,784$ 888,176$ 926,270$ 2,615,684$ 7,005,913$
21 General Capital Outlay 670,698$ 1,164,484$ 1,306,794$ 302,508$ 1,835,182$ 3,444,484$
22 Local Revenue Measure 348,330$ 432,172$ 1,268,990$ 888,176$ 623,761$ 780,502$ 3,561,429$
23 404 - Major Facility Replacement 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 - Infrastructure Investment 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 Fund 200,000$ 138,341$ 338,341$ 338,341$
33 511 - Orcutt Area Specific Plan Park Fund 500,000$ 1,211,641$ 250,000$ 1,711,641$ 1,961,641$
34 514 - San Luis Ranch TIF 7,300,000$ -$ 7,300,000$
35 515 - Orcutt Area Specific Plan TIF 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 6,845,477$ 5,318,759$ 11,979,132$ 5,776,168$ 5,925,428$ 12,164,236$ 35,844,964$
38 602 - Sewer Fund 9,304,843$ 3,631,306$ 8,089,641$ 1,639,168$ 10,710,524$ 12,936,149$ 33,375,482$
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 194,167$ 2,111,089$ 329,029$ 577,500$ 773,300$ 2,305,256$ 3,985,085$
46 Grand Total 116,020,168$ 67,269,798$ 162,576,880$ 56,196,375$ 62,979,945$ 183,289,966$ 465,043,165$
Table 64
Financial Plan Page 360 Page 772 of 954
Capital Improvement Program 2023-25
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), in many ways the CIP supports
the overall core functions of local government and work toward enhancing the quality of life of 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).
Note: 2023-24 amount for the Economic Resiliency, Cultural Vitality, and Fiscal Sustainability MCG accounts for the Cultural Arts
District Parking Strucure funding.
Climate Action,
Open Space and
Sustainable
Transportation
30%
Diversity, Equity,
Inclusion (DEI)
<1%
Economic
Resiliency, Cultural
Vitality and Fiscal
Sustainability
44%
Housing and
Homelessness
2%
Other
24%
Chart 66: Major City Goal: 2023-24
ID Table 65: Project 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 34,413,894$ 16,846,406$ 24,005,910$ 13,630,000$ 19,454,851$ 51,260,300$ 108,351,061$
2 Diversity, Equity, Inclusion (DEI)250,000$ 50,000$ 1,000,000$ 300,000$ 1,300,000$
3
Economic Resiliency, Cultural Vitality
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$ 99,350,000$ 6,585,000$ 3,500,000$ 28,481,902$ 137,916,902$
5 Other 28,309,042$ 20,221,722$ 36,320,970$ 24,971,375$ 34,565,094$ 48,530,764$ 144,388,202$
6 Grand Total 116,020,168$ 67,269,798$ 162,576,880$ 56,196,375$ 62,979,945$ 183,289,966$ 465,043,165$
Financial Plan Page 361 Page 773 of 954
Capital Improvement Program 2023-25
ID Table 68: Active Transportation Projects 2023-24 2024-25 2025-26 2026-27 2027-28
1 Active Transportation Plan Implementation 435,000$ 550,000$ 520,000$ 2,400,000$ 2,400,000$
2 Pedestrian Facility Improvements 45,000$ 150,000$ 100,000$ 100,000$ 100,000$
3 Bicycle Facility Improvements 55,000$ 150,000$ 100,000$ 100,000$ 100,000$
4 Area Sealing Projects Complete Street Components 285,000$ 200,000$ 200,000$ 200,000$ 200,000$
5 Active Transporation Plan Tier 1 Network Implementation 50,000$ 50,000$ 100,000$ 2,000,000$ 2,000,000$
6 ATP - Foothill Boulevard Complete Street Project 200,000$ 2,400,000$ -$ -$
7 ATP - Higuera Complete Street Project 8,251,000$ 750,000$ -$ -$ -$
8 ATP - Orcutt Road Railroad Crossing Upgrades 200,000$ -$ 500,000$ -$ -$
9 ATP - RR Safety Trail (Orcutt to Tiburon) and Bullock Culvert Replacement 300,000$ 100,000$ 2,000,000$ -$ -$
10 ATP - South/King Pedestrian Hybrid Beacon 500,000$ -$ -$ -$ -$
11 California & Taft Roundabout 500,000$ -$ 3,022,000$
12 Grand Total 10,386,000$ 1,400,000$ 8,442,000$ 2,400,000$ 2,400,000$
CIP Expenditures to Active Transportation
The community and Council have placed strong emphasis on the City’s effort to implement the programs,
policies and infrastructure projects identified in the adopted Active Transportation Plan (ATP), which
includes a priority list of transportation network enhancements focused on improving safety and mobility
for people walking and bicycling. While the primary focus of this Plan is on walking and bicycling, “active
transportation” refers to all human-powered modes of transportation, from walking and bicycling, to
scootering, skateboarding, traveling by wheelchair and using other rolling mobility devices. Over the next
two years, staff will continue to deliver on the goals and objectives outlined in the ATP, as well as the
Climate Action, Open Space, and Active Transportation Major City Goal, utilizing a variety of funding
sources to leverage local funds. The table below outlines various ATP projects and respective funding
sources that are programmed in the coming fiscal years.
Climate Action,
Open Space and
Sustainable
Transportation
25%
Diversity, Equity,
Inclusion (DEI)
<1%
Economic
Resiliency, Cultural
Vitality and Fiscal
Sustainability
5%
Housing and
Homelessness
40%
Other
30%
Chart 67: Major City Goal: 2024-25
Financial Plan Page 362 Page 774 of 954
Capital Improvement Program 2023-25
CIP Expenditure by Project and Task
The tables below outline a complete list of all capital projects across all programs, departments, and
funding sources. The tables present project budgets and/or cost estimates for the next five fiscal years.
Although this Financial Plan only addresses budget allocations for Fiscal Year 2023-25, it is important to
understand the larger picture and future capital project investments into and beyond the five-year period.
The table is organized with the largest project budgets beginning in FY 2023-24, from top to bottom where
the blue rows represent a project, and the white rows represent a given task or subproject within that
project (if applicable).
ID CIP #Project/Task 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Totals 5-Year Totals
1 1 Cultural Arts District Parking Structure 47,000,000$ 1,500,000$ 490,000$ -$ -$ 48,500,000$ 48,990,000$
2 2 Mid-Higuera Bypass 8,729,000$ 2,850,000$ -$ -$ -$ 11,579,000$ 11,579,000$
3 3 ATP - Higuera Complete Street Project 8,251,000$ 750,000$ -$ -$ -$ 9,001,000$ 9,001,000$
4 4 Street Reconstruction & Resurfacing 6,956,994$ 5,000,000$ 7,514,000$ 6,000,000$ 9,000,000$ 11,956,994$ 34,470,994$
5 5 WRRF and Wastewater Collection Maintenance Facility 6,500,000$ -$ -$ -$ -$ 6,500,000$ 6,500,000$
6 6 Waterline Replacement: Johnson - Iris to Bishop 3,300,000$ -$ -$ -$ -$ 3,300,000$ 3,300,000$
7 7 Storm Response and Recovery 2,750,000$ -$ -$ -$ -$ 2,750,000$ 2,750,000$
8 8 Bus Replacements with EV 2,701,500$ 2,226,000$ 3,055,110$ -$ 2,145,851$ 4,927,500$ 10,128,461$
9 9 Mission Plaza Concept Plan Implementation 2,429,972$ 470,028$ 100,000$ 6,000,000$ 4,000,000$ 2,900,000$ 13,000,000$
10 10 Storm Drain System Replacement 1,875,000$ 1,025,000$ 825,000$ 1,325,000$ 1,325,000$ 2,900,000$ 6,375,000$
11 11 Transit Facility EV Charging Infrastructure 1,805,400$ 1,445,406$ 604,800$ -$ 414,000$ 3,250,806$ 4,269,606$
12 12 Prado Road Interchange 1,435,260$ 2,750,000$ 91,350,000$ 6,585,000$ -$ 4,185,260$ 102,120,260$
13 13
Sewer-main Replacements: Taft, Hathaway, Phillips, Buena Vista,
and Loomis 1,225,000$ -$ -$ -$ -$ 1,225,000$ 1,225,000$
14 14 Major Facility Maintenance 1,152,000$ 423,178$ 625,000$ 1,928,776$ 2,015,000$ 1,575,178$ 6,143,954$
15 879 Morro - Roof 100,000$ -$ -$ -$ -$ 100,000$ 100,000$
16 ADA Transition Plan Implementation 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 30,000$ 75,000$
17 City County Community Room TI -$ -$ 75,000$ -$ -$ -$ 75,000$
18 City Hall Drought Tolerant Landscaping -$ -$ -$ -$ 35,000$ -$ 35,000$
19 City Hall Fire Alarm Fire Alarm Control Panel -$ -$ -$ 30,000$ -$ -$ 30,000$
20 City/County Library front steps -$ -$ -$ 15,000$ 150,000$ -$ 165,000$
21 Corp Yard Fuel Island Siding / Recoating of Fuel Island and Dispensers 250,000$ -$ -$ -$ -$ 250,000$ 250,000$
22 Corp Yard Roof Coating -$ -$ 10,000$ 150,000$ -$ -$ 160,000$
23
Emergency Communications Center Workstation/Carpet
Replacements -$ -$ -$ 343,776$ -$ -$ 343,776$
24 Energy Management Controls Upgrade 110,000$ -$ -$ -$ -$ 110,000$ 110,000$
25 Existing SLO Repertory Theater Tenant Improvements -$ -$ -$ -$ 150,000$ -$ 150,000$
26 Facility Roll Up Door Replacements - Various Locations 15,000$ 20,000$ 20,000$ 20,000$ 20,000$ 35,000$ 95,000$
27 Fire Station #1 Administration Bldg. Roof 60,000$ -$ -$ -$ -$ 60,000$ 60,000$
28 Fire Station #4 - Exterior Paint 25,000$ -$ -$ -$ -$ 25,000$ 25,000$
29 Fire Station 3 & 4 Carpet Replacement -$ -$ -$ 40,000$ -$ -$ 40,000$
30 Fleet Lifts -$ 50,000$ -$ -$ -$ 50,000$ 50,000$
31 HVAC Air Handler at Parking Services 230,000$ -$ -$ -$ -$ 230,000$ 230,000$
32 Hydration Stations 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 50,000$ 125,000$
33 IT Room Heat Pump Replacements 12,000$ 15,000$ 15,000$ 20,000$ 20,000$ 27,000$ 82,000$
34 Jack House Roof and Widows Walk Railing 250,000$ -$ -$ -$ -$ 250,000$ 250,000$
35 Ludwick and Senior Center - Exterior Paint and Shell Rehab -$ 250,000$ 25,000$ 250,000$ -$ 250,000$ 525,000$
36 Ludwick Community Center - Roof and Solar Replacement -$ -$ -$ 150,000$ 500,000$ -$ 650,000$
37 Parks and Recreation Roofing Siding and Exterior Painting -$ -$ 60,000$ 250,000$ -$ -$ 310,000$
38 Police Department HVAC Package Unit Replacement -$ -$ 15,000$ 100,000$ -$ -$ 115,000$
39 Police Department Hydronic System Piping Replacement -$ 15,000$ 85,000$ -$ -$ 15,000$ 100,000$
40 Railroad Museum Roof -$ -$ 30,000$ 150,000$ -$ -$ 180,000$
41 Recreation Sites Tenant Improvements - Community Room/Ludwick -$ -$ -$ -$ 100,000$ -$ 100,000$
42 Senior Center Roof -$ -$ 75,000$ -$ -$ -$ 75,000$
43 Swim Center Bath House Ceiling -$ -$ -$ 100,000$ -$ -$ 100,000$
44 Swim Center Deck Replacement -$ -$ 100,000$ -$ 1,000,000$ -$ 1,100,000$
45 Swim Center Furnaces (2 Furnaces)40,000$ -$ -$ -$ -$ 40,000$ 40,000$
46 Swim Center Multipurpose Room flooring -$ -$ -$ 20,000$ -$ -$ 20,000$
47 Swim Center Old Bath House Roof -$ -$ 75,000$ 200,000$ -$ -$ 275,000$
48 Swim Center Olympic Pool Thermal Blankets -$ -$ -$ 50,000$ -$ -$ 50,000$
49 Swim Center Pool Water Chemical Regulator 20,000$ -$ -$ -$ -$ 20,000$ 20,000$
50 Therapy Pool Shade Structure Material Replacement -$ 33,178$ -$ -$ -$ 33,178$ 33,178$
Table 69:
Financial Plan Page 363 Page 775 of 954
Capital Improvement Program 2023-25
ID CIP #Project/Task 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Totals 5-Year Totals
51 15 IT Replacement 1,145,500$ 2,011,001$ 2,695,000$ 911,099$ 980,794$ 3,156,501$ 7,743,393$
52 911 Phone System -$ -$ -$ 289,819$ -$ -$ 289,819$
53 Access Control (Automatic Gate Card System) -$ -$ -$ -$ 150,000$ -$ 150,000$
54 Asset Management (Cityworks - Utilities Integration)-$ 50,000$ -$ -$ -$ 50,000$ 50,000$
55 Audio Recording System Replacement -$ -$ -$ 173,891$ -$ -$ 173,891$
56 Body Worn Cameras, Video Storage and Interview Rooms 50,000$ 50,000$ -$ -$ -$ 100,000$ 100,000$
57 CAD/RMS Replacement -$ -$ 900,000$ -$ -$ -$ 900,000$
58 CAD/RMS Study -$ 100,000$ -$ -$ -$ 100,000$ 100,000$
59 City SAN -$ -$ -$ 223,413$ -$ -$ 223,413$
60 Dispatch Radio Consoles 150,000$ -$ -$ -$ -$ 150,000$ 150,000$
61 ECC Computers -$ 150,000$ -$ -$ -$ 150,000$ 150,000$
62 ECC Audio Visual System -$ 350,000$ -$ -$ -$ 350,000$ 350,000$
63 ECC Equipment Replacement 35,000$ 35,000$ -$ -$ 39,393$ 70,000$ 109,393$
64 ECC UPS -$ -$ 161,000$ -$ -$ -$ 161,000$
65 Escribe replacement -$ -$ -$ -$ 40,000$ -$ 40,000$
66 Fire Station Alerting System -$ -$ 340,000$ -$ -$ -$ 340,000$
67 Firewall Replacement -$ 250,000$ -$ -$ -$ 250,000$ 250,000$
68 Motion ERP 150,000$ 150,000$ -$ -$ -$ 300,000$ 300,000$
69 Network Security Upgrade -$ 125,000$ -$ -$ 136,131$ 125,000$ 261,131$
70 Network Switching Infrastructure Equipment 550,000$ -$ -$ -$ -$ 550,000$ 550,000$
71 Parks & Rec ActiveNet Software Replacement -$ -$ 50,000$ -$ -$ -$ 50,000$
72 PD SAN -$ -$ -$ 163,199$ -$ -$ 163,199$
73 PD/City backup storage, secondary storage 75,000$ -$ -$ -$ -$ 75,000$ 75,000$
74 Police CAD Hardware (Servers and Storage)-$ -$ -$ -$ 405,746$ -$ 405,746$
75 Public Safety MDC and In-Car Video Replacement -$ 250,000$ 443,000$ -$ -$ 250,000$ 693,000$
76 Public Safety Specialized Surveillance cameras (PODs) Replacement -$ -$ 63,000$ 60,777$ 50,648$ -$ 174,425$
77 Public Surveillance Cameras -citywide 5 year replace 40,000$ -$ 51,000$ -$ -$ 40,000$ 91,000$
78 Public Surveillance Citywide Cameras Storage add redundancy 40,000$ -$ -$ -$ -$ 40,000$ 40,000$
79 Radio Handhelds & Mobiles -$ -$ 145,000$ -$ -$ -$ 145,000$
80 Radios, Mobiles and stations not replaced - EF & PW Only -$ 200,000$ -$ -$ -$ 200,000$ 200,000$
81 Security Video System Replacement (Camera Software)55,500$ -$ -$ -$ -$ 55,500$ 55,500$
82 Uninterruptible Power Supplies (UPS’s Servers and Storage)-$ 51,001$ -$ -$ 53,586$ 51,001$ 104,587$
83 Utility Billing System -$ 150,000$ -$ -$ -$ 150,000$ 150,000$
84 Virtual Private Network Replace -$ 100,000$ -$ -$ -$ 100,000$ 100,000$
85 VMware Infrastructure Upgrade -$ -$ 242,000$ -$ -$ -$ 242,000$
86 VoIP Telephone System -$ -$ 300,000$ -$ -$ -$ 300,000$
87 Wireless System Citywide -$ -$ -$ -$ 105,290$ -$ 105,290$
88 16 Parks and Rec General Plan Implementation 800,000$ -$ -$ -$ -$ 800,000$ 800,000$
89 17 Fleet Replacement: Public Works 770,000$ 395,000$ 612,000$ 1,110,000$ 1,385,000$ 1,165,000$ 4,272,000$
90 Engineering Compact Pickup -$ -$ -$ -$ 65,000$ -$ 65,000$
91 Engineering Compact Pickup -$ -$ 65,000$ -$ -$ -$ 65,000$
92 Engineering Compact Pickup -$ -$ 65,000$ -$ -$ -$ 65,000$
93 Facilities Maintenance 3/4 ton Pickup with Utility Bed -$ 75,000$ -$ 75,000$ -$ 75,000$ 150,000$
94 Fleet Motor Pool Compact Pickup -$ -$ -$ -$ 70,000$ -$ 70,000$
95 Park Maintenance Mower -$ -$ -$ 85,000$ -$ -$ 85,000$
96 Parking Compact Pickup -$ 50,000$ -$ -$ -$ 50,000$ 50,000$
97 Parking Scooters/LPR equipped vehicle 40,000$ -$ -$ -$ -$ 40,000$ 40,000$
98 Parks Maint Mower -$ -$ -$ 85,000$ -$ -$ 85,000$
99 Parks Maint Refuse Truck -$ -$ -$ 250,000$ -$ -$ 250,000$
100 Parks Maint Turf Tender -$ -$ 22,000$ -$ -$ -$ 22,000$
101 Parks Maintenance 3/4 ton Pickup -$ 140,000$ 75,000$ -$ -$ 140,000$ 215,000$
102 Parks Maintenance Compact Pickup -$ -$ -$ 65,000$ -$ -$ 65,000$
103 Parks Maintenance Compact Pickup -$ -$ 65,000$ -$ -$ -$ 65,000$
104 Parks Maintenance Trailers -$ -$ 15,000$ -$ -$ -$ 15,000$
105 PW Maintenance Supervisor Vehicle -$ 50,000$ -$ -$ -$ 50,000$ 50,000$
106 Stormwater Compact Pickup -$ -$ -$ -$ 50,000$ -$ 50,000$
107 Stormwater Hydro cleaner 630,000$ -$ -$ -$ -$ 630,000$ 630,000$
108 Streets Maint HD Air Brake Trailer -$ 55,000$ 55,000$ -$ -$ 55,000$ 110,000$
109 Streets Maint Compact Pickup -$ -$ -$ 70,000$ -$ -$ 70,000$
110 Streets Maint HD Roll-Off Truck -$ -$ -$ -$ 350,000$ -$ 350,000$
111 Streets Maint Paver -$ -$ -$ 250,000$ -$ -$ 250,000$
112 Streets Maintenance 3/4 ton Pickup F150 electric/hybrid -$ -$ -$ 70,000$ -$ -$ 70,000$
113 Streets Maintenance Backhoe -$ -$ 250,000$ -$ -$ -$ 250,000$
114 Streets Maintenance Compact Pickup - Replace w/ Van -$ -$ -$ -$ 50,000$ -$ 50,000$
115 Streets Maintenance Roller -$ -$ -$ 100,000$ -$ -$ 100,000$
116 Streets Maintenance Trailers -$ 25,000$ -$ -$ -$ 25,000$ 25,000$
117 Streets- Sweeper -$ -$ -$ -$ 800,000$ -$ 800,000$
118 Supplies, Software and Tools 100,000$ -$ -$ -$ -$ 100,000$ 100,000$
119 Urban Forest Compact Pickup Escape Hyb AWD for Arborist -$ -$ -$ 60,000$ -$ -$ 60,000$
Table 69 (continued):
Financial Plan Page 364 Page 776 of 954
Capital Improvement Program 2023-25
ID CIP #Project/Task 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Totals 5-Year Totals
120 18 Water Storage Tank Major Maintenance 755,000$ 1,000,000$ 127,000$ 1,100,000$ 1,100,000$ 1,755,000$ 4,082,000$
121 Edna Tank Recoating 80,000$ 1,000,000$ -$ -$ -$ 1,080,000$ 1,080,000$
122 Reservoir 2 Cover Replacement 200,000$ -$ -$ -$ -$ 200,000$ 200,000$
123 Wash water tank #1 475,000$ -$ -$ -$ -$ 475,000$ 475,000$
124 Water Storage Tank Maintenance -$ -$ 127,000$ 1,100,000$ 1,100,000$ -$ 2,327,000$
125 19 General Parking Structure Maintenance 700,000$ 700,000$ 1,000,000$ 1,100,000$ 1,100,000$ 1,400,000$ 4,600,000$
126 20 Water Treatment Plant - Building Maintenance 650,000$ -$ -$ -$ -$ 650,000$ 650,000$
127 21 Park Major Maintenance & Repairs 520,000$ 440,000$ 710,000$ 1,410,000$ 1,117,500$ 960,000$ 4,197,500$
128 ADA Transition Plan Implementation -$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 80,000$
129 Concrete Bench & Table Replacement Various Locations 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 30,000$ 75,000$
130 Devaul Basketball Court Replacement -$ -$ -$ -$ 15,000$ -$ 15,000$
131 Irrigation Mainline Leak Repair 35,000$ 35,000$ 35,000$ 35,000$ 35,000$ 70,000$ 175,000$
132 Islay Park flatwork replacement -$ -$ -$ 40,000$ -$ -$ 40,000$
133 Jack House Arbor 175,000$ -$ -$ -$ -$ 175,000$ 175,000$
134 Johnson Park sidewalk and tree replacement -$ -$ -$ 100,000$ -$ -$ 100,000$
135 Johnson Park Sidewalk Replacement -$ -$ -$ 75,000$ -$ -$ 75,000$
136 Laguna Lake Docks and Ramp -$ -$ 100,000$ -$ -$ -$ 100,000$
137 Landscape Controller System Upgrade to Cal sense -$ 150,000$ -$ -$ -$ 150,000$ 150,000$
138 Madonna Road Landscaping and Irrigation Replacement 50,000$ -$ 300,000$ -$ -$ 50,000$ 350,000$
139 Master Valve and Flow Sensing Installations 100,000$ -$ -$ -$ -$ 100,000$ 100,000$
140 Meadow Park Exercise/Par Course Equipment Replacement -$ -$ -$ -$ 200,000$ -$ 200,000$
141 Mission Plaza Railing Upgrade 35,000$ 35,000$ 35,000$ 35,000$ 35,000$ 70,000$ 175,000$
142 Mitchell Park Replacement Restroom Doors -$ -$ -$ 100,000$ -$ -$ 100,000$
143 Parks Play Surfacing 80,000$ 60,000$ 60,000$ 60,000$ 60,000$ 140,000$ 320,000$
144 Santa Rosa Barbecue Replacements -$ -$ 40,000$ -$ -$ -$ 40,000$
145 Santa Rosa Park Monument Sign -$ 20,000$ 75,000$ -$ -$ 20,000$ 95,000$
146 Sinsheimer Hillside turf (5 year cycle)-$ -$ -$ 75,000$ -$ -$ 75,000$
147 Sinsheimer outfield wall replacement -$ -$ -$ 75,000$ -$ -$ 75,000$
148 Sinsheimer Playground Turf and Soft Surface Replacement -$ -$ -$ -$ 7,500$ -$ 7,500$
149 Sinsheimer Stadium Bleachers -$ -$ -$ 100,000$ 700,000$ -$ 800,000$
150 Sinsheimer Stadium Fencing -$ -$ -$ 50,000$ -$ -$ 50,000$
151 Sinsheimer Stadium Lighting Addition -$ 75,000$ -$ 600,000$ -$ 75,000$ 675,000$
152 Water Stations and Supply Lines 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 60,000$ 150,000$
153 22 ATP - South/King Crossing 500,000$ -$ -$ -$ -$ 500,000$ 500,000$
154 23 California & Taft Roundabout 500,000$ -$ 3,022,000$ -$ -$ 500,000$ 3,522,000$
155 24 Development Related Park Improvements 500,000$ 5,423,642$ 250,000$ -$ -$ 5,923,642$ 6,173,642$
156 Orcutt Area - Linear Park 500,000$ -$ -$ -$ -$ 500,000$ 500,000$
157 Orcutt Area - Neighborhood Park -$ 5,423,642$ -$ -$ -$ 5,423,642$ 5,423,642$
158 Orcutt Area - Pocket Park -$ -$ 250,000$ -$ -$ -$ 250,000$
159 25 Active Transportation Plan Implementation 435,000$ 550,000$ 520,000$ 2,400,000$ 2,400,000$ 985,000$ 6,305,000$
160 Active Transportation Plan Tier 1 Network Implementation 50,000$ 50,000$ 100,000$ 2,000,000$ 2,000,000$ 100,000$ 4,200,000$
161 Area Sealing Projects Complete Street Components 285,000$ 200,000$ 200,000$ 200,000$ 200,000$ 485,000$ 1,085,000$
162 Bicycle Facility Improvements 55,000$ 150,000$ 100,000$ 100,000$ 100,000$ 205,000$ 505,000$
163 Bikeshare System Implementation -$ -$ 20,000$ -$ -$ -$ 20,000$
164 Pedestrian Facility Improvements 45,000$ 150,000$ 100,000$ 100,000$ 100,000$ 195,000$ 495,000$
165 26 Urban Forest Maintenance 420,000$ 440,000$ 450,000$ 450,000$ 450,000$ 860,000$ 2,210,000$
166 27 Water Meters and Boxes 335,000$ 343,000$ 350,000$ 350,000$ 350,000$ 678,000$ 1,728,000$
167 28 Parking Enforcement Equipment at Gate Entry 300,000$ -$ -$ -$ -$ 300,000$ 300,000$
168 29
ATP - Railroad Safety Trail (Orcutt to Tiburon) and Bullock Culvert
Replacement 300,000$ 100,000$ 2,000,000$ -$ -$ 400,000$ 2,400,000$
169 30 Parking Lot Maintenance 285,000$ 745,000$ 515,000$ 1,330,000$ 615,000$ 1,030,000$ 3,490,000$
170 Damon Garcia Sports Field Complex -$ 130,000$ -$ -$ -$ 130,000$ 130,000$
171 Fire Station 2 50,000$ -$ -$ -$ -$ 50,000$ 50,000$
172 Johnson Park -$ 50,000$ -$ -$ -$ 50,000$ 50,000$
173 Laguna Lake -$ -$ 75,000$ 1,250,000$ -$ -$ 1,325,000$
174 Laguna Lake Golf Course -$ -$ -$ -$ 25,000$ -$ 25,000$
175 Ludwick Community Center -$ 10,000$ 400,000$ -$ -$ 10,000$ 410,000$
176 Meadow Park 175,000$ -$ -$ -$ -$ 175,000$ 175,000$
177 Minor Repair of City Parking Lots 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 80,000$ 200,000$
178 Mitchell Park and SLO Senior Citizens Center 10,000$ 35,000$ -$ -$ -$ 45,000$ 45,000$
179 New parking lot Maintenance Projects -$ -$ -$ -$ 200,000$ -$ 200,000$
180 Santa Rosa Park -$ 400,000$ -$ -$ -$ 400,000$ 400,000$
181 Sinsheimer Park -$ -$ -$ 40,000$ 350,000$ -$ 390,000$
182 Throop Park 10,000$ 80,000$ -$ -$ -$ 90,000$ 90,000$
183 31 Water Utility Trench Repair 280,000$ 280,000$ 280,000$ 280,000$ 280,000$ 560,000$ 1,400,000$
184 32 Water Valve Cover Adjustments 276,000$ 35,000$ 35,000$ 35,000$ 35,000$ 311,000$ 416,000$
185 33 Sewer-main Replacement: Morro, Mill, Santa Rosa, and Chorro 253,000$ -$ -$ -$ -$ 253,000$ 253,000$
186 34 Water Distribution System - Point Repairs 250,000$ -$ 250,000$ -$ 250,000$ 250,000$ 750,000$
Table 69 (continued)
Financial Plan Page 365 Page 777 of 954
Capital Improvement Program 2023-25
ID CIP #Project/Task 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Totals 5-Year Totals
187 35 Water Treatment Plant – Asset Replacement 245,000$ 115,000$ 145,000$ 45,000$ 140,000$ 360,000$ 690,000$
188 Actiflo Poly Blend Units 75,000$ -$ -$ -$ -$ 75,000$ 75,000$
189 Chlorine Metering Pump Skid at Chemical Feed Room 50,000$ -$ -$ -$ -$ 50,000$ 50,000$
190 Cityworks Integration (water)-$ 90,000$ -$ -$ -$ 90,000$ 90,000$
191 Contact Basin Drain Repair - Ozone System -$ -$ -$ -$ 95,000$ -$ 95,000$
192 Package Thickener -$ 25,000$ 100,000$ -$ -$ 25,000$ 125,000$
193 Pipe Gallery Coatings -$ -$ 45,000$ -$ -$ -$ 45,000$
194 Purchase Spare TPS pump, motor, and VFD 120,000$ -$ -$ -$ -$ 120,000$ 120,000$
195 Water Treatment Plant - Facility Asset Replacement -$ -$ -$ 45,000$ 45,000$ -$ 90,000$
196 36
Waterline Replacement: Santa Rosa - Stenner Creek Road to
Highland 30-inch Pipeline 230,000$ -$ 8,230,000$ -$ -$ 230,000$ 8,460,000$
197 37 Annual Public Art Maintenance and Projects 225,000$ 200,000$ 100,000$ 100,000$ 100,000$ 425,000$ 725,000$
198 Public Art Annual Asset Maintenance 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 60,000$ 150,000$
199 Small Public Art Projects 175,000$ 150,000$ 50,000$ 50,000$ 50,000$ 325,000$ 475,000$
200 Utility Box Beautify 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 40,000$ 100,000$
201 38 Fleet Replacement: Utilities 220,000$ 150,000$ 948,772$ 87,500$ 1,568,000$ 370,000$ 2,974,272$
202 Fleet Services Vehicle Lift -$ -$ -$ -$ 3,000$ -$ 3,000$
203 879 Administration Prius -$ -$ 40,000$ -$ -$ -$ 40,000$
204 Boat Trailer -$ -$ -$ 7,500$ -$ -$ 7,500$
205 Environmental Compliance - Pickup -$ -$ -$ -$ 70,000$ -$ 70,000$
206 Environmental Compliance - Sedan -$ -$ -$ 40,000$ -$ -$ 40,000$
207 Fleet - 4x4 3/4 Ton Truck w/Utility Box & Crane -$ -$ 75,000$ -$ -$ -$ 75,000$
208 Fleet - 4x4 SUV - Jeep -$ -$ 60,000$ -$ -$ -$ 60,000$
209 Fleet - Boston Whaler -$ -$ -$ 40,000$ -$ -$ 40,000$
210 Fleet - F150 4x4 Pick-up -$ -$ 76,572$ -$ -$ -$ 76,572$
211 Fleet Services Vehicle Lift -$ -$ 2,200$ -$ -$ -$ 2,200$
212 Sewer WRRF Compact Pickup -$ -$ -$ -$ 60,000$ -$ 60,000$
213 Sewer WWCL Portable Pump 85,000$ -$ -$ -$ -$ 85,000$ 85,000$
214 Waste Water Collections Dump Truck -$ -$ -$ -$ 250,000$ -$ 250,000$
215 Wastewater Collections Caterpillar Excavator -$ -$ -$ -$ 70,000$ -$ 70,000$
216 Water Distribution Backhoe -$ -$ -$ -$ 250,000$ -$ 250,000$
217 Water Distribution Compact pickup -$ -$ 60,000$ -$ -$ -$ 60,000$
218 Water Distribution Compact Pickups -$ -$ 120,000$ -$ -$ -$ 120,000$
219 Water Distribution Message Board -$ -$ -$ -$ 40,000$ -$ 40,000$
220 Water Distribution Pickup -$ -$ -$ -$ 70,000$ -$ 70,000$
221 Water Distribution Service Truck -$ -$ 500,000$ -$ -$ -$ 500,000$
222 Water Distribution Service Truck -$ -$ -$ -$ 375,000$ -$ 375,000$
223 Water Distribution Skid Loader -$ -$ -$ -$ 60,000$ -$ 60,000$
224 Water Distribution Trailer -$ -$ 15,000$ -$ -$ -$ 15,000$
225 Water Distribution Valve turning trailer -$ 150,000$ -$ -$ -$ 150,000$ 150,000$
226 Whale Rock Utility Tractor 75,000$ -$ -$ -$ -$ 75,000$ 75,000$
227 WRRF Utility Carts -$ -$ -$ -$ 165,000$ -$ 165,000$
228 WTP 1/2 ton Crew Cab 4X4 Pickup -$ -$ -$ -$ 75,000$ -$ 75,000$
229 WTP Compact Pickup 60,000$ -$ -$ -$ -$ 60,000$ 60,000$
230 WWC Pickup -$ -$ -$ -$ 80,000$ -$ 80,000$
231 39 Emerson Park Amenity Upgrades and Beautification 200,000$ -$ -$ -$ -$ 200,000$ 200,000$
232 40 Fire Station 3&4 Remodel Space Study and Design 200,000$ -$ 1,000,000$ -$ -$ 200,000$ 1,200,000$
233 41 ATP - Foothill Boulevard Complete Street Project 200,000$ -$ 2,400,000$ -$ -$ 200,000$ 2,600,000$
234 42 ATP - Orcutt Road Railroad Crossing Upgrades 200,000$ -$ 500,000$ -$ -$ 200,000$ 700,000$
235 43 Sewer Lift Station Maintenance 200,000$ -$ 80,000$ -$ 80,000$ 200,000$ 360,000$
236 44 Development Agreement - City Share 200,000$ -$ 850,000$ 560,000$ 2,300,000$ 200,000$ 3,910,000$
237 45 Pismo Street Retaining Wall - Storm Response 200,000$ -$ 1,700,000$ -$ -$ 200,000$ 1,900,000$
238 46 Water Treatment Plant - Major Equipment Maintenance 189,000$ 180,000$ 180,000$ 180,000$ 180,000$ 369,000$ 909,000$
239 Chemical System Maintenance 33,000$ -$ -$ -$ -$ 33,000$ 33,000$
240 Ozone System Maintenance 156,000$ -$ -$ -$ -$ 156,000$ 156,000$
241 WTP Major Maintenance -$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$ 720,000$
242 47 Sewer Maintenance Cover Adjustments 180,000$ 30,000$ 30,000$ 30,000$ 30,000$ 210,000$ 300,000$
243 48 Higuera St. Widening - Bridge to Elks 180,000$ -$ -$ -$ -$ 180,000$ 180,000$
244 49 Electric Vehicle Charging Station at Various Facilities 175,000$ 100,000$ 150,000$ 150,000$ 150,000$ 275,000$ 725,000$
245 50 Open Space Acquisition 175,000$ 150,000$ 250,000$ 150,000$ 150,000$ 325,000$ 875,000$
246 51 Open Space Maintenance 170,000$ 170,000$ 170,000$ 170,000$ 320,000$ 340,000$ 1,000,000$
247 General Open Space Maintenance 120,000$ 120,000$ 120,000$ 120,000$ 120,000$ 240,000$ 600,000$
248 Open Space Climate-Informed Maintenance -$ -$ -$ -$ 150,000$ -$ 150,000$
249 Open Space Fencing 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 100,000$ 250,000$
250 52 Bridge Preventative Maintenance 150,000$ 200,000$ 200,000$ 200,000$ 200,000$ 350,000$ 950,000$
251 53 Salinas Reservoir Transfer of Ownership Plan 150,000$ -$ -$ -$ -$ 150,000$ 150,000$
252 54 Silt Removal 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 300,000$ 750,000$
253 55 WRRF Power Cogeneration Upgrade 150,000$ -$ 1,475,000$ -$ -$ 150,000$ 1,625,000$
254 56 WRRF - Building Maintenance 150,000$ -$ 825,000$ -$ -$ 150,000$ 975,000$
255 Lab Admin HVAC -$ -$ 75,000$ -$ -$ -$ 75,000$
256 WRRF - Building Maintenance 150,000$ -$ 750,000$ -$ -$ 150,000$ 900,000$
Table 69 (continued)
Financial Plan Page 366 Page 778 of 954
Capital Improvement Program 2023-25
ID CIP #Project/Task 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Totals 5-Year Totals
257 57 Vision Zero Program Implementation 140,000$ 120,000$ 120,000$ 120,000$ 120,000$ 260,000$ 620,000$
258 58 Pedestrian and Bicycle Pathway Maintenance 125,000$ 435,000$ 365,000$ 400,000$ 300,000$ 560,000$ 1,625,000$
259 Andrews and Johnson Bike Path -$ 10,000$ 65,000$ -$ -$ 10,000$ 75,000$
260 Brookpine and Spanish Oaks Trail -$ -$ -$ 250,000$ -$ -$ 250,000$
261 Pathway Maintenance Various Locations 125,000$ 150,000$ 150,000$ 150,000$ 150,000$ 275,000$ 725,000$
262 Pavement Area 2 & 3 Bike Path Sealing -$ -$ -$ -$ 150,000$ -$ 150,000$
263 Railroad Safety Trail -$ 275,000$ 150,000$ -$ -$ 275,000$ 425,000$
264 59 Wastewater Collections System - Point Repairs 120,000$ -$ 120,000$ -$ 120,000$ 120,000$ 360,000$
265 60 Sidewalk Replacement and Installation 100,000$ 150,000$ 250,000$ 250,000$ 250,000$ 250,000$ 1,000,000$
266 Curb Ramps and Sidewalks 50,000$ 100,000$ 150,000$ 150,000$ 150,000$ 150,000$ 600,000$
267 Street Tree Sidewalks 50,000$ 50,000$ 100,000$ 100,000$ 100,000$ 100,000$ 400,000$
268 61
Waterline Replacement: Chorro - Highland to Meinecke 24-inch
Pipeline Replacement 100,000$ 1,900,000$ -$ -$ -$ 2,000,000$ 2,000,000$
269 62 871 Marsh Street Structure Maintenance 100,000$ -$ -$ -$ -$ 100,000$ 100,000$
270 63 Roundabout Public Art Installations 100,000$ 100,000$ 100,000$ 200,000$ 200,000$ 200,000$ 700,000$
271 64 842 Palm Parking Structure Maintenance 100,000$ -$ -$ -$ -$ 100,000$ 100,000$
272 65 License Plate Recognition Replacement 97,000$ -$ -$ -$ -$ 97,000$ 97,000$
273 66 Bus Shelter Replacements 90,000$ 90,000$ 90,000$ 90,000$ 90,000$ 180,000$ 450,000$
274 67 Street Lights - Annual Asset Maintenance 75,000$ 75,000$ 75,000$ 80,000$ 80,000$ 150,000$ 385,000$
275 68 Fleet Replacement: Parks and Recreation 75,000$ -$ 70,000$ 80,000$ 85,000$ 75,000$ 310,000$
276 Golf Course Mower -$ -$ -$ 80,000$ -$ -$ 80,000$
277 Parks and Rec Admin Compact Pickup -$ -$ 70,000$ -$ -$ -$ 70,000$
278 Parks- Mower -$ -$ -$ -$ 85,000$ -$ 85,000$
279 Parks Tractor Attachments 75,000$ -$ -$ -$ -$ 75,000$ 75,000$
280 69 Traffic Signs & Striping Maintenance 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 150,000$ 375,000$
281 70 Sewer Lift Station Replacement - Silver City 70,000$ 100,000$ 1,980,000$ -$ -$ 170,000$ 2,150,000$
282 71 Whale Rock Reservoir - Asset Replacement 67,542$ 128,923$ 45,398$ 20,000$ 220,000$ 196,465$ 481,863$
283 Evaporation/Weather Stations -$ -$ 25,398$ -$ -$ -$ 25,398$
284 Replacement of Piezometers -$ 108,923$ -$ -$ -$ 108,923$ 108,923$
285 Reservoir Fencing 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 40,000$ 100,000$
286 Stilling Basin 47,542$ -$ -$ -$ -$ 47,542$ 47,542$
287 Valve Replacements -$ -$ -$ -$ 200,000$ -$ 200,000$
288 72 Fire Hydrants 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 110,000$ 275,000$
289 73 Transportation Monitoring & Modeling Update 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 110,000$ 275,000$
290 74 Whale Rock Transmission Pipeline Replacement 51,000$ -$ 60,000$ 510,000$ 550,300$ 51,000$ 1,171,300$
291 75 Waterline Abandonment & Connections 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 100,000$ 250,000$
292 76 Neighborhood Traffic Improvements 45,000$ 30,000$ 30,000$ 30,000$ 30,000$ 75,000$ 165,000$
293 77 Banner Arms, Bench Arm Rests, Signs 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 50,000$ 125,000$
294 78 Sewer Utility Trench Repair 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 50,000$ 125,000$
295 79
Sewer-main Replacement: Serrano, Bressi, Dana and Higuera
Pipeline Replacement 25,000$ 1,275,000$ -$ -$ -$ 1,300,000$ 1,300,000$
296 80 Laguna Lake Golf Course Maintenance 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 40,000$ 100,000$
297 81 Water Treatment Plant - Water Meter Replacement 10,000$ 30,000$ 54,800$ -$ -$ 40,000$ 94,800$
298 Drying Bed Meters -$ -$ 4,800$ -$ -$ -$ 4,800$
299 Salinas Water Meter -$ -$ 50,000$ -$ -$ -$ 50,000$
300 Water Treatment Plant - Water Meter Replacement 10,000$ 30,000$ -$ -$ -$ 40,000$ 40,000$
301 82 Buchon-Santa Rosa Intersection Improvements -$ -$ 100,000$ -$ -$ -$ 100,000$
302 83 Sustainable Groundwater Management Act GSP -$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 600,000$
303 84 Parking Lot Maintenance - Bus Yard -$ 25,000$ 500,000$ -$ -$ 25,000$ 525,000$
304 85 WRRF - Demolish Old Effluent Structure -$ -$ -$ 50,000$ 495,000$ -$ 545,000$
305 86 Dalidio Drive Access Improvements -$ -$ -$ 25,000$ 75,000$ -$ 100,000$
306 87 WRRF Asset Replacement -$ 125,000$ 125,000$ 75,000$ 200,000$ 125,000$ 525,000$
307 Coating Maintenance -$ -$ -$ 25,000$ -$ -$ 25,000$
308 Existing Cogen Maintenance (M7)-$ -$ -$ -$ 150,000$ -$ 150,000$
309 Rebuild Influent Storm Pumps -$ 75,000$ 75,000$ -$ -$ 75,000$ 150,000$
310 UV Bulb Replacement (annual replacement)-$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 200,000$
311 88 Waterline Replacement: Highland at UPRR and Cal Poly -$ -$ -$ 850,000$ -$ -$ 850,000$
312 89 Emily Street Extension -$ -$ -$ -$ 200,000$ -$ 200,000$
313 90 Prado Road Bridge & Road Widening -$ 18,373,000$ 7,750,000$ -$ -$ 18,373,000$ 26,123,000$
314 91 Major Facility Replacements -$ 350,000$ 1,040,000$ 3,100,000$ 3,500,000$ 350,000$ 7,990,000$
315 Corporation Yard TI -$ -$ 40,000$ 1,500,000$ -$ -$ 1,540,000$
316 Debt Service - PD Replacement -$ -$ -$ -$ 3,500,000$ -$ 3,500,000$
317 Police Building Stop-Gap Improvements -$ -$ -$ 600,000$ -$ -$ 600,000$
318 Police Station Replacement -$ 350,000$ 1,000,000$ 1,000,000$ -$ 350,000$ 2,350,000$
319 92 Downtown Transit Center Rehabilitation (Transit Fund)-$ -$ -$ 140,000$ 1,500,000$ -$ 1,640,000$
320 93 Climate Action Plan Support - Carshare Program -$ -$ -$ -$ 115,000$ -$ 115,000$
321 94 Sewer Inflow/Infiltration Reduction -$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 1,000,000$
322 95 Water Storage Tank Inspection and Cleaning -$ -$ -$ 50,000$ 250,000$ -$ 300,000$
323 96 Laguna Lake Golf Course Irrigation Improvements -$ -$ -$ -$ 300,000$ -$ 300,000$
324 97 Lead by Example -$ 100,000$ 78,000$ 765,000$ 570,000$ 100,000$ 1,513,000$
325 Building Electrification - City Hall Heat Pump -$ -$ 78,000$ -$ 518,000$ -$ 596,000$
326 Building Electrification - Swim Center Heat Pump -$ 100,000$ -$ 765,000$ -$ 100,000$ 865,000$
327 Fire Station 1 Electrification -$ -$ -$ -$ 52,000$ -$ 52,000$
Table 69 (continued)
Financial Plan Page 367 Page 779 of 954
Capital Improvement Program 2023-25
ID CIP #Project/Task 2023-24 2024-25 2025-26 2026-27 2027-28 2-Year Totals 5-Year Totals
328 98 Waterline Replacement: Patricia, Highland, and La Entrada -$ -$ -$ 127,000$ 1,397,000$ -$ 1,524,000$
329 99 City Hall Exterior Lighting -$ -$ 50,000$ 200,000$ -$ -$ 250,000$
330 100 Old Garden Creek Retaining Wall -$ -$ 175,000$ -$ 800,000$ -$ 975,000$
331 101 Fleet Replacement: Police -$ 90,000$ 350,000$ 482,000$ 1,201,500$ 90,000$ 2,123,500$
332 Admin Sedan -$ -$ -$ -$ 45,000$ -$ 45,000$
333 Communications Lieutenant Vehicle -$ -$ -$ 62,000$ -$ -$ 62,000$
334 FST Maverick -$ -$ -$ 65,000$ -$ -$ 65,000$
335 Investigations Sedan -$ -$ -$ -$ 60,000$ -$ 60,000$
336 Investigations Sedan -$ -$ -$ -$ 60,000$ -$ 60,000$
337 Investigations SUV -$ -$ -$ 65,000$ -$ -$ 65,000$
338 Police FST Truck -$ -$ -$ -$ 70,000$ -$ 70,000$
339 Police Investigations Enclosed Trailer -$ -$ -$ -$ 25,000$ -$ 25,000$
340 Police Investigations Sedan -$ -$ 40,000$ -$ -$ -$ 40,000$
341 Police Motorcycles -$ 20,000$ 40,000$ 20,000$ 20,000$ 20,000$ 100,000$
342 Police Patrol Electric SUV -$ -$ 150,000$ 150,000$ 170,000$ -$ 470,000$
343 Police Patrol Hybrid SUV -$ 70,000$ 120,000$ 120,000$ 120,000$ 70,000$ 430,000$
344 Public Safety Mobile Command Vehicle/City EOC -$ -$ -$ -$ 550,000$ -$ 550,000$
345 Truck to tow the Mobile Command Trailer -$ -$ -$ -$ 81,500$ -$ 81,500$
346 102 Sewer-main Replacement: Bee Bee - South Street to Sandercock -$ -$ -$ 400,000$ -$ -$ 400,000$
347 103 T-3 Water Storage Tank Replacement - High Pressure Zone -$ 900,000$ 500,000$ -$ -$ 900,000$ 1,400,000$
348 104 Sewer-main Replacement: Broad, Murray, and Chorro -$ -$ -$ -$ 145,000$ -$ 145,000$
349 105
Sewer-main Replacement: Buchon - Morro to Johnson Pipeline
Replacement -$ -$ -$ 135,000$ 2,485,000$ -$ 2,620,000$
350 106 Downtown Zig-Zag Lighting -$ -$ -$ 1,100,000$ -$ -$ 1,100,000$
351 107 Sewer-main Replacement: Chorro - Boysen to Rougeot -$ 250,000$ 2,750,000$ -$ -$ 250,000$ 3,000,000$
352 108 Sewer-main Replacement: Foothill Siphon -$ -$ 200,000$ 250,000$ 2,750,000$ -$ 3,200,000$
353 109 Parking Pay Station Installation -$ 600,000$ 600,000$ 600,000$ -$ 600,000$ 1,800,000$
354 110 Fire Station 4 Metal Building Gym Space -$ -$ 200,000$ -$ -$ -$ 200,000$
355 111 Corporation Yard Perimeter Fence Replacement -$ -$ 550,000$ -$ -$ -$ 550,000$
356 112
Sewer-main Replacement: San Jose, Ramona, Monte Vista, and
California -$ 1,225,000$ -$ -$ -$ 1,225,000$ 1,225,000$
357 113
Laguna Lake Dredging and Sediment Management Project
Implementation -$ 900,000$ -$ 900,000$ -$ 900,000$ 1,800,000$
358 114 Fleet Replacement: Admin -$ 250,000$ 175,000$ 50,000$ 50,000$ 250,000$ 525,000$
359 City Hall Generator (GEN-9712)-$ 125,000$ 125,000$ -$ -$ 125,000$ 250,000$
360 Community EV Charging -$ -$ 50,000$ 50,000$ 50,000$ -$ 150,000$
361 Downtown Cleaning Equipment -$ 125,000$ -$ -$ -$ 125,000$ 125,000$
362 115 SLO Creek Walk Maintenance - Lighting, Signage, Irrigation, Plants -$ 250,000$ -$ 250,000$ -$ 250,000$ 500,000$
363 116 Playground Equipment Replacement -$ -$ 1,100,000$ 1,100,000$ 1,600,000$ -$ 3,800,000$
364 Anholm Playground Equipment Replacement -$ -$ -$ 100,000$ 500,000$ -$ 600,000$
365 DeVaul Ranch Playground -$ -$ 500,000$ -$ -$ -$ 500,000$
366 French Park Playground Equipment Replacement -$ -$ -$ -$ 150,000$ -$ 150,000$
367 Laguna Hills Playground -$ -$ 100,000$ 950,000$ -$ -$ 1,050,000$
368 Mitchell Park Playground -$ -$ -$ 50,000$ 950,000$ -$ 1,000,000$
369 Vista Lago Mini Park Playground -$ -$ 500,000$ -$ -$ -$ 500,000$
370 117 Source Water Strategic Plan -$ 90,000$ -$ -$ -$ 90,000$ 90,000$
371 118 Waterline Replacement: Rockview - Stoneridge to Broad -$ -$ 130,000$ 1,530,000$ -$ -$ 1,660,000$
372 119 South Street Median Landscaping -$ -$ 550,000$ -$ -$ -$ 550,000$
373 120 Waterline Replacement: Stenner Canyon at Reservoir -$ -$ 80,000$ 1,100,000$ -$ -$ 1,180,000$
374 121 Whale Rock Pump Station Electrical Repairs (A and B)-$ 1,960,620$ -$ -$ -$ 1,960,620$ 1,960,620$
375 122 Downtown Renewal -$ 200,000$ -$ 2,000,000$ -$ 200,000$ 2,200,000$
376 123 Recycled Waterline at Orcutt Street - Fernwood to Laurel -$ 25,000$ 675,000$ -$ -$ 25,000$ 700,000$
377 124 WRRF Asset Replacement - Screw Press -$ -$ -$ 200,000$ 3,360,000$ -$ 3,560,000$
378 125 Recycled Waterline at Tank Farm - Long to Innovation Pipeline -$ -$ -$ 25,000$ 625,000$ -$ 650,000$
379 126 Recycled Water Annual UV Bulb Replacement -$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 40,000$
380 127 WTP - Filter Media Replacement and Underdrain Repairs -$ -$ 60,000$ 60,000$ 250,000$ -$ 370,000$
381 128 Recycled Water Pump Station Maintenance -$ 60,000$ -$ -$ -$ 60,000$ 60,000$
382 129 Recycled Water Storage Tank -$ -$ -$ -$ 20,000$ -$ 20,000$
383 CIP Reserve 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 8,000,000$ 20,000,000$
384 Grand Total 116,020,168$ 67,269,798$ 162,576,880$ 56,196,375$ 62,979,945$ 183,289,966$ 465,043,165$
Table 69 (continued)
Financial Plan Page 368 Page 780 of 954
Capital Improvement Program 2023-25
How to Interpret Project Narrative Pages
Project Information
The project detail pages include the following information:
1.Project Number – Each project is assigned a unique identifier.
2.Project Classification Information – Describes the project’s function and classification, if
it is tied to any other CIP projects, the community priority, and what type of project it is.
3.Purpose and Need – Describes the project’s purpose, details of the project elements and
need for the project in the community.
4.Fiscal Years – Outlines the cost of the project over the span of five years and the total
cost budget.
5.Fund & Funding Sources – Identifies the source(s) of project funding.
Financial Plan Page 369 Page 781 of 954
Capital Improvement Plan
Project Number Project Name
90435 Cultural Arts District Parking Structure
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
The project includes the construction of a new parking structure at the intersection of Palm and Nipomo that will include approximately
396 parking spaces, two elevators, electric vehicle charging stations, an event space and viewing deck, safe bike parking, solar panels
and other amenities to support the downtown community. The total project cost is currently estimated at $54.5 Million.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 47,000,000 1,500,000 490,000 0 0 48,990,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 1,500,000 490,000 0 0 1,990,000
611 - Parking Fund 47,000,000 0 0 0 0 47,000,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Bonds, Infrastructure Loan
(Debt) 47,000,000 0 0 0 0 47,000,000
General Capital Outlay 0 1,500,000 490,000 0 0 1,990,000
CIP# 1
Financial Plan Page 370 Page 782 of 954
Capital Improvement Plan
Project Number Project Name
90649 Mid-Higuera Bypass
Project Classification Classification Description
CIP Project Function Community Safety
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Community Improvement
Project Type Asset Replacement
Purpose and Need
Due to historical encroachment into the San Luis Obispo creek channel between Marsh Street and Madonna Road, the creek channel
is unable to provide sufficient capacity for flood events. This results in frequent flood damage as flood waters rise out of the creek
channel and flow down Higuera Street. This project would reduce the frequency of this flooding by widening the creek at multiple pinch
points along the project area, installing flood bypass channels within City open space and directing flood waters towards the creek
channel at Matthews Open Space.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 8,729,000 2,850,000 0 0 0 11,579,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 8,729,000 2,850,000 0 0 0 11,579,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 1,250,000 2,850,000 0 0 0 4,100,000
State or Federal Grant 6,079,000 0 0 0 0 6,079,000
Zone 9 1,400,000 0 0 0 0 1,400,000
CIP# 2
Financial Plan Page 371 Page 783 of 954
Capital Improvement Plan
Project Number Project Name
2001057 ATP - Higuera Complete Street Project
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
This project includes complete street and active transportation safety improvements along the Higuera corridor between Marsh Street
and Los Osos Valley Road, as well as bikeway enhancements on Madonna Road between Higuera Street and the US 101 SB Ramps,
and neighborhood greenway improvements along Bridge Street/Corrida/Woodbridge Street east of Higuera. Improvements include
buffered and protected bike lanes, bicycle and pedestrian crossing improvements, hi-visibility crosswalks, ADA curb ramp upgrades,
speed reduction elements, and traffic signal upgrades.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 8,251,000 750,000 0 0 0 9,001,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 8,251,000 750,000 0 0 0 9,001,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 300,000 750,000 0 0 0 1,050,000
SLOCOG Grant 1,000,000 0 0 0 0 1,000,000
State or Federal Grant 6,951,000 0 0 0 0 6,951,000
CIP# 3
Financial Plan Page 372 Page 784 of 954
Capital Improvement Plan
Project Number Project Name
90346 Street Reconstruction & Resurfacing
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Pavement maintenance is an ongoing need and provides increased roadway life and a smooth pavement surface. The City’s
Pavement Management Plan (PMP), adopted in 1998, established nine pavement maintenance zones within the City, and a plan in
which each of these areas received maintenance on an eight-year rotation. In 2009, the City Council approved a modified PMP that
provided priority for arterial streets while maintaining the eight-year rotation for maintenance work on local streets. The City maintains
a total of 134 miles of roadways. Identified projects are as follows:
2023 - Santa Barbara Ave, Monterey Street, California Blvd, La Loma Court, Palm Street, Morro Street
2024 - Areas 8 & 1 Local and Collector Streets, Johnson Avenue
2025 - Tank Farm, Orcutt Road
2026 – Areas 2 & 3 Local and Collector Streets
2027 – South Higuera, Los Osos Valley Road, Madonna
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 6,956,994 5,000,000 7,514,000 6,000,000 9,000,000 34,470,994
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
211 - SB1 Road Repair
2017 1,177,994 1,092,000 1,114,000 1,136,000 1,158,720 5,678,714
401 - Capital Outlay Fund 5,779,000 2,908,000 6,400,000 3,864,000 7,841,280 28,792,280
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 5,779,000 3,908,000 6,400,000 4,864,000 7,841,280 28,792,280
SB1 1,177,994 1,092,000 1,114,000 1,136,000 1,158,720 5,678,714
CIP# 4
Financial Plan Page 373 Page 785 of 954
Capital Improvement Plan
Project Number Project Name
1000550
WRRF and Wastewater Collection
Maintenance Facility
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Purpose and Need
The City’s Water Resource Recovery Facility (WRRF) and Wastewater Collection’s maintenance shops are located near the
intersection of Prado Road and Elks Lane. In 2017 the need to design and construct an overcrossing on Highway 101 was presented
to Caltrans with anticipation of developing a work plan to complete environmental clearances, design, and construction. Since 2017,
iterations of the overcrossing objectives and design requirements have required the footprint of the overcrossing to encroach into the
sewer fund’s property. The encroachment will require demolition of the existing wastewater collection’s shop and re-routing of the
Prado Road entrance. This project will look for opportunities to re-purpose existing building areas or develop new objectives for the
design of a new maintenance shop. The project will be broken up into a study, design and environmental clearance, and construction
phase. Additionally, the WRRF demolished the existing maintenance welding shop and storage facility to make room for the new
digester and pumping facilities. The WRRF will need a maintenance shop with adequate storage and amenities to service the new
facility in the next three years and eliminate the steel storage bins currently being used. This project will evaluate opportunities to
merge the two maintenance shops under one footprint and review the section’s objectives to create efficiencies with one construction
project to promote section efficiencies, enhance security to the WRRF, and improve circulation based on the intersection realignments
proposed by the Highway 101 overcrossing project.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 6,500,000 0 0 0 0 6,500,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 6,500,000 0 0 0 0 6,500,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 6,500,000 0 0 0 0 6,500,000
CIP# 5
Financial Plan Page 374 Page 786 of 954
Capital Improvement Plan
Project Number Project Name
1000578
Waterline Replacement: Johnson - Iris to
Bishop
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The objective of the project is to replace a critical water transmission pipeline along Johnson Avenue from Iris to Bishop Street. The
existing cast iron pipe has been deteriorating faster than anticipated and is need of replacement as a high priority project given this
pipeline serves a major Hospital and other essential facilities along Johnson Avenue. The new pipeline will meet standards by the
American Water Works Association (AWWA) that will provide resiliency in the distribution network against variations in pressure and
flows for current and future developments.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 3,300,000 0 0 0 0 3,300,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 3,300,000 0 0 0 0 3,300,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 3,300,000 0 0 0 0 3,300,000
CIP# 6
Financial Plan Page 375 Page 787 of 954
Capital Improvement Plan
Project Number Project Name
2001027 Storm Response and Recovery
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City of SLO was struck with multiple storm events from Dec 2022 through March 2023, one of which was a federally declared
major disaster. Staff are leading efforts to respond to the infrastructure damage caused by these events and mitigate future damage to
the maximum extent feasible.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 2,750,000 0 0 0 0 2,750,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 2,750,000 0 0 0 0 2,750,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 2,750,000 0 0 0 0 2,750,000
CIP# 7
Financial Plan Page 376 Page 788 of 954
Capital Improvement Plan
Project Number Project Name
1000505 Bus Replacements with EV
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type Asset Replacement
Purpose and Need
Several SLO Transit vehicles are near the end of their useful life as defined by the Federal Transit Administration as 12 years of
consecutive service. These vehicles are showing their age and experiencing reliability issues and require additional costly
maintenance. This project will replace end of useful life diesel transit vehicles with new electric transit vehicles which is essential for
the City to move closer towards meeting its Climate Action, Open Space, & Sustainable Transportation Plan goals of being carbon
neutral by 2030 and the California Air Resource Board Innovative Clean Transit Rule for 100% transition to electric transit vehicles by
2040. Funding for transit vehicle replacements is contingent upon receipt of discretionary grant dollars.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 2,701,500 2,226,000 3,055,110 0 2,145,851 10,128,461
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
621 - Transit Fund 2,701,500 2,226,000 3,055,110 0 2,145,851 10,128,461
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
State or Federal Grant 2,701,500 2,226,000 3,055,110 0 2,145,851 10,128,461
CIP# 8
Financial Plan Page 377 Page 789 of 954
Capital Improvement Plan
Project Number Project Name
91439 Mission Plaza Concept Plan Implementation
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Community Improvement
Project Type Asset Replacement
Purpose and Need
The City of San Luis Obispo has completed and approved a Concept Plan for future improvements to the Mission Plaza. A major
component of the Concept Plan is to replace the existing restroom and install a new Kiosk, this scope of work is currently being advanced
as Phase #1 of the broader Mission Plaza Concept Plan implementation. This project also supports design and future construction of the
primary plaza area between Chorro Street and Broad Street, identified as Phase #2, as well as design service for Phase #3, improvements
to the Broad Street Dog-leg.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 2,429,972 470,028 100,000 6,000,000 4,000,000 13,000,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 2,429,972 470,028 100,000 6,000,000 4,000,000 13,000,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 2,354,302 0 0 0 0 2,354,302
Local Revenue Measure 75,670 470,028 100,000 6,000,000 4,000,000 10,645,698
CIP# 9
Financial Plan Page 378 Page 790 of 954
Capital Improvement Plan
Project Number Project Name
90742 Storm Drain System Replacement
Project Classification Classification Description
CIP Project Function Community Safety
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This annual asset maintenance project addresses capital maintenance and replacement of pipes, culverts, and constructed drainage
channels to provide increased flood protection and reduced likelihood of loss of property. Budget is used to address high priority
maintenance and repair of pipes and culverts past their design life and at risk of failure, as well as emergency repairs.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 1,875,000 1,025,000 825,000 1,325,000 1,325,000 6,375,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 1,875,000 1,025,000 825,000 1,325,000 1,325,000 6,375,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 1,875,000 1,025,000 825,000 1,325,000 1,325,000 6,375,000
CIP# 10
Financial Plan Page 379 Page 791 of 954
Capital Improvement Plan
Project Number Project Name
1000535 Transit Facility EV Charging Infrastructure
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type Asset Replacement, New Asset
Purpose and Need
The State of California's Innovative Clean Fleet Rule requires transit agencies to convert to zero emission vehicles. This project is to
build in the electric vehicle infrastructure needed to support the City's acquisition of electric transit buses.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 1,805,400 1,445,406 604,800 0 414,000 4,269,606
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
621 - Transit Fund 1,805,400 1,445,406 604,800 0 414,000 4,269,606
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
State or Federal Grant 1,805,400 1,445,406 604,800 0 414,000 4,269,606
CIP# 11
Financial Plan Page 380 Page 792 of 954
Capital Improvement Plan
Project Number Project Name
91613 Prado Road Interchange
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Housing and Homelessness
Partnership Project Yes
Project Classification Transportation
Project Type New Asset
Purpose and Need
The existing interchange at Prado Road is at grade and cannot accommodate development needs within the City and region. Prado
road will be extended across Hwy 101, and the North Bound on and off ramps will also be added to this raised interchange. Elks Lane
will be re-routed and form a new intersection with the driveway to the City Corporation Yard and Water Resource Recovery Facility.
Corporation Yard assets will be re-organized to allow the interchange to be constructed. Prado Road will also be widened from Elks
Lane to the Prado Creek Bridge. Grant Funding will be pursued during future design phases to help fund construction costs to the
maximum extent possible.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 1,435,260 2,750,000 91,350,000 6,585,000 0 102,120,260
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 1,435,260 0 80,900,000 6,585,000 0 88,920,260
405 - Infrastructure Invest
CIP Fund 0 2,750,000 1,150,000 0 0 3,900,000
507 - Transportation Impact
Fee Fund 0 0 2,000,000 0 0 2,000,000
514 - SLR Transportation
Impact Fee Fund 0 0 7,300,000 0 0 7,300,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Bonds, Infrastructure Loan
(Debt) 0 0 74,900,000 0 0 74,900,000
Developer Contribution 0 0 7,300,000 0 0 7,300,000
Infrastructure Investment
Fund 0 2,750,000 1,150,000 0 0 3,900,000
Local Revenue Measure 0 0 0 6,585,000 0 6,585,000
San Luis Obispo County 1,435,260 0 0 0 0 1,435,260
SLOCOG Grant 0 0 6,000,000 0 0 6,000,000
Transportation Development
Impact Fee 0 0 2,000,000 0 0 2,000,000
CIP# 12
Financial Plan Page 381 Page 793 of 954
Capital Improvement Plan
Project Number Project Name
1000570
Sewer-main Replacements: Taft, Hathaway,
Phillips, Buena Vista, and Loomis
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer mains. Some pipes are over 100 years old, and
are undersized to handle the current flow rates. Maintenance needs increase dramatically as pipelines reach their flow capacities, or
when they approach the end of their useful life. Pipelines in the public wastewater collection system are inspected using specialized
video equipment that will prioritize periodic cleaning frequencies or recommend a complete replacement. Based on the assessment,
this project is needed for the replacement of sewer mains dating back to 1955 that make up potions of the backbone system crossing
Highway 101 and have shown high infiltration flows rates during major storm events.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 1,225,000 0 0 0 0 1,225,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 1,225,000 0 0 0 0 1,225,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 1,225,000 0 0 0 0 1,225,000
CIP# 13
Financial Plan Page 382 Page 794 of 954
Capital Improvement Plan
Project Number Project Name
1000075 Major Facility Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Public Facility
Project Type
Annual Asset Maintenance, Asset
Replacement, New Asset
Purpose and Need
This project will maintain, upgrade, or replace City facilities that serve the community. Funding in this Financial Plan is intended to
support the Corporation Yard Fuel Island Siding, Jack House Roof Repairs, and HVAC work at the Parking Services Office, among
others.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 1,152,000 423,178 625,000 1,928,776 2,015,000 6,143,954
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 75,000 448,776 435,000 958,776
404 - Major Facility Repl
Fund 822,000 423,178 550,000 1,480,000 1,580,000 4,855,178
601 - Water Fund 50,000 0 0 0 0 50,000
602 - Sewer Fund 50,000 0 0 0 0 50,000
611 - Parking Fund 230,000 0 0 0 0 230,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 250,000 50,000 100,000 550,000 0 950,000
Local Revenue Measure 572,000 373,178 525,000 1,378,776 2,015,000 4,863,954
Parking Fund 230,000 0 0 0 0 230,000
Sewer Fund 50,000 0 0 0 0 50,000
Water Fund 50,000 0 0 0 0 50,000
CIP# 14
Financial Plan Page 383 Page 795 of 954
Capital Improvement Plan
Project Number Project Name
1000074 IT Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification IT
Project Type Annual Asset Maintenance
Purpose and Need
These projects replace Information Technology assets based upon equipment lifespan, condition, and organizational requirements.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 1,145,500 2,011,001 2,695,000 911,099 980,794 7,743,393
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
403 - Info Tech Repl Fund 1,019,028 1,596,656 2,575,784 888,176 926,270 7,005,913
601 - Water Fund 32,977 172,259 32,332 9,168 18,428 265,164
602 - Sewer Fund 54,343 179,806 34,641 9,168 25,524 303,482
611 - Parking Fund 27,961 32,467 31,665 2,292 7,612 101,996
621 - Transit Fund 10,566 8,268 10,719 2,295 2,961 34,808
705 - Whale Rock Fund 625 21,546 9,859 0 0 32,030
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
150,000 150,000 0 0 0 300,000
General Capital Outlay 520,698 1,014,484 1,306,794 0 302,508 3,144,484
Local Revenue Measure 348,330 432,172 1,268,990 888,176 623,761 3,561,429
Parking Fund 27,961 32,467 31,665 2,292 7,612 101,996
Sewer Fund 54,343 179,806 34,641 9,168 25,524 303,482
Transit Fund 10,566 8,268 10,719 2,295 2,961 34,808
Water Fund 32,977 172,259 32,332 9,168 18,428 265,164
Whale Rock Fund 625 21,546 9,859 0 0 32,030
CIP# 15
Financial Plan Page 384 Page 796 of 954
Capital Improvement Plan
Project Number Project Name
1000526 Parks and Rec General Plan Implementation
Project Classification Classification Description
CIP Project Function Culture & Recreation
Major City Goal Other
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
The Parks and Recreation Blueprint for the Future was approved in July 2021, funding was allocated to conduct focus groups and to
begin project plans and scope for the immediate short-term (5 year) prioritized upgrades and new recreational features and amenity
upgrades/replacements. e.g., Laguna Lake Dog Park, Bike Park, restroom enhancements at Sinsheimer Park.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 800,000 0 0 0 0 800,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
501 - Parkland Development
Fund 800,000 0 0 0 0 800,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parkland Development
Impact Fees 800,000 0 0 0 0 800,000
CIP# 16
Financial Plan Page 385 Page 797 of 954
Capital Improvement Plan
Project Number Project Name
1000520 Fleet Replacement: Public Works
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Fleet
Project Type
Annual Asset Maintenance, Asset
Replacement, New Asset
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement
Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture
Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have
been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with
the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 770,000 395,000 612,000 1,110,000 1,385,000 4,272,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
402 - Fleet Repl Fund 730,000 345,000 612,000 1,110,000 1,385,000 4,182,000
611 - Parking Fund 40,000 50,000 0 0 0 90,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 75,000 0 75,000 135,000 285,000
Local Revenue Measure 730,000 270,000 612,000 1,035,000 1,250,000 3,897,000
Parking Fund 40,000 50,000 0 0 0 90,000
CIP# 17
Financial Plan Page 386 Page 798 of 954
Capital Improvement Plan
Project Number Project Name
1000034 Water Storage Tank Major Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Storage capacity for treated potable water is an essential function of a water distribution system to provide adequate flows and
pressures throughout the community. In addition to water storage tanks at the Water Treatment Plant, there are nine water storage
tanks located within the City’s distribution system, and a few have been in operation since the early 1940s. Maintenance of water
storage facilities is necessary to prolong the useful life of these assets and ensures staff’s ability to operate the water system to State
and Federal standards. In 2012, a consultant was hired to inspect and produce a report regarding the interior and exterior of the City’s
water storage tanks. The report included recommendations, and preliminary cost estimates for future maintenance projects. Following
the inspection of the tanks, staff worked with the consultant to assign a priority ranking for each future maintenance project. The
proposed projects for funding include:
1) Wash Water Tank No. 1 is experiencing excessive corrosion on the inner roof area. To prevent the tank structure from deteriorating
and to prolong the tank’s lifespan, new interior and exterior coatings are required and reconstruction of the roof’s structural members is
needed.
2) Reservoir 2, the City’s largest treated potable water storage tank, needs a new floating cover and associated equipment. The
existing floating cover has reached the end of its service life. Reservoir 2 is a concrete water storage tank.
3) Edna Tank, the City’s largest steel potable water storage tank, is experiencing corrosion on the interior surfaces and requires new
interior and exterior coatings to prevent the corrosion from spreading into the structural members. Coating projects are preventative
maintenance and will prolong the life span of the tank and reduce the likelihood of future costly component failures. This project will be
grouped with other coating projects to capitalize on potential savings from a larger construction project.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 755,000 1,000,000 127,000 1,100,000 1,100,000 4,082,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 755,000 1,000,000 127,000 1,100,000 1,100,000 4,082,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 755,000 1,000,000 127,000 1,100,000 1,100,000 4,082,000
CIP# 18
Financial Plan Page 387 Page 799 of 954
Capital Improvement Plan
Project Number Project Name
2001030 General Parking Structure Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
In 2018, the City completed a Parking Structure Capital Asset Management Plan that identify necessary maintenance projects that will
repair deficiencies, improve aesthetics and extend the useful life of each structure. This funding will address ongoing maintenance at
the City's parking structures. Funding captures ongoing maintenance for all city owned parking structures.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 700,000 700,000 1,000,000 1,100,000 1,100,000 4,600,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
611 - Parking Fund 700,000 700,000 1,000,000 1,100,000 1,100,000 4,600,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parking Fund 700,000 700,000 1,000,000 1,100,000 1,100,000 4,600,000
CIP# 19
Financial Plan Page 388 Page 800 of 954
Capital Improvement Plan
Project Number Project Name
2001056
Water Treatment Plant - Building
Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The Water Treatment Plant has been in operation since the 1940’s with some facilities upgraded in 1963, 1994, and 2008. Additional
repairs, maintenance, and energy efficiency projects were completed between 2010 and 2022. The Building Maintenance Project will
provide asset replacement funds to repair roof and window leaks experienced in the administration building and replace the carpet on
the second floor of the building.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 650,000 0 0 0 0 650,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 650,000 0 0 0 0 650,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 650,000 0 0 0 0 650,000
CIP# 20
Financial Plan Page 389 Page 801 of 954
Capital Improvement Plan
Project Number Project Name
91385 Park Major Maintenance & Repairs
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type
Annual Asset Maintenance, Asset
Replacement
Purpose and Need
Parks require ongoing maintenance in order to continue to provide users a safe and quality experience. This Annual Asset
Maintenance Account provides ongoing funding for the maintenance and replacement of a park infrastructure. This account provides
funding annually for parks surfacing maintenance and water supply infrastructure including the installation of hydration stations. Larger
maintenance projects include, but are not limited to:
• 2023-24: Jack House Arbor, Parks Play Surfacing, Water Station and Supply Lines, Mission Plaza Railing Upgrade, and Irrigation
Leak Repairs and Improvements
• 2024-25: Parks Play Surfacing, Water Station and Supply Lines, ADA Transition Plan support, Concrete Bench and Table
Replacements, Landscape Controller System Upgrades, and Sinsheimer Stadium Lighting
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 520,000 440,000 710,000 1,410,000 1,117,500 4,197,500
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 520,000 440,000 710,000 1,410,000 1,117,500 4,197,500
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 100,000 0 0 0 0 100,000
Local Revenue Measure 420,000 440,000 710,000 1,410,000 1,117,500 4,097,500
CIP# 21
Financial Plan Page 390 Page 802 of 954
Capital Improvement Plan
Project Number Project Name
2001059 ATP - South/King Crossing
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project Yes
Project Classification Transportation
Project Type New Asset
Purpose and Need
This project includes installation of a Pedestrian Hybrid Beacon crossing at the intersection of South Street & King Street, improving
connectivity for pedestrians and cyclists between Meadow Park, Hawthorne Elementary School, and the existing King-Nipomo
Neighborhood Greenway.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 500,000 0 0 0 0 500,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 500,000 0 0 0 0 500,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
SLOCOG Grant 500,000 0 0 0 0 500,000
CIP# 22
Financial Plan Page 391 Page 803 of 954
Capital Improvement Plan
Project Number Project Name
91503 California & Taft Roundabout
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project Yes
Project Classification Transportation
Project Type Asset Replacement
Purpose and Need
This project includes Installation of a roundabout at the intersection of California & Taft, which improves traffic safety and congestion
for all road users. This project also improves pedestrian and bicycle connectivity to the newly constructed segment of the Railroad
Safety Trail on the west side of California Boulevard. Grant Funding will be pursued during design phases and project development to
fund construction costs to the maximum extent possible, with a small contribution from Cal Poly supporting various phases of the
project.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 500,000 0 3,022,000 0 0 3,522,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 500,000 0 3,022,000 0 0 3,522,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 500,000 0 3,022,000 0 0 3,522,000
CIP# 23
Financial Plan Page 392 Page 804 of 954
Capital Improvement Plan
Project Number Project Name
1000057 Development Related Park Improvements
Project Classification Classification Description
CIP Project Function Culture & Recreation
Major City Goal Housing and Homelessness
Partnership Project Yes
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
With the dedication of parkland and park fees collected from developments within the Orcutt Area Specific Plan (OASP), the City will
be developing the four parks as provided in the OASP development plans. Parks include a neighborhood park, linear park, pocket park
and trail junction park with recreation amenities such as pickleball and tennis courts, playground, restrooms, sport fields, dog park,
basketball court, BBQ pavilion, and bike/pump track. Initial conceptual designs were approved by the Parks and Recreation
Commission in 2016, but additional public input is being gathered in 2023 for formal park design and scope with design in 2023 and
project start in 2024. Additional projects to be supported will utilize Parkland-in-lieu fees paid by San Luis Ranch per the development
agreement to construct park amenity enhancements at Laguna Lake Park. Enhancements will be guided by the new Parks and
Recreation Blueprint for the Future.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 500,000 5,423,642 250,000 0 0 6,173,642
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 3,237,138 0 0 0 3,237,138
510 - Parkland Development
Impact Fee - Citywide 0 138,341 0 0 0 138,341
511 - OASP Park Fund 500,000 1,211,641 250,000 0 0 1,961,641
519 - Park Improvement
Impact Fee Fund - Citywide 0 836,522 0 0 0 836,522
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 3,237,138 0 0 0 3,237,138
Parkland Development
Impact Fees 500,000 2,186,504 250,000 0 0 2,936,504
CIP# 24
Financial Plan Page 393 Page 805 of 954
Capital Improvement Plan
Project Number Project Name
1000502 Active Transportation Plan Implementation
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
In February of 2021, the City adopted its first Active Transportation Plan (ATP), which identifies policies, programs and projects
needed to support a high-quality, safe and efficient citywide bicycle and pedestrian transportation system. Elements of the Active
Transportation Plan are implemented through private development as well as City-led programs and capital improvement projects.
This larger capital project encompasses planning, design and construction of several smaller sub-projects to support implementation of
the Active Transportation Plan which includes:
• Pedestrian Facility Improvements
• Bicycle Facility Improvements
• Area Sealing Projects - Complete Streets
• ATP Tier 1 Network Implementation
• Bikeshare System Implementation
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 435,000 550,000 520,000 2,400,000 2,400,000 6,305,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 435,000 550,000 520,000 2,400,000 2,400,000 6,305,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 0 100,000 2,000,000 2,000,000 4,100,000
Local Revenue Measure 390,000 460,000 375,000 355,000 355,000 1,935,000
Transportation Development
Act TDA 45,000 90,000 45,000 45,000 45,000 270,000
CIP# 25
Financial Plan Page 394 Page 806 of 954
Capital Improvement Plan
Project Number Project Name
1000027 Urban Forest Maintenance
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City’s Urban Forest is comprised of approximately 13,000 public trees. Regular tree pruning and related maintenance provides for
an attractive, healthy, and safer urban forest. This funding will be used to provide annual tree pruning in neighborhoods and the
downtown to compliment the Urban Forest Master Plan used to guide long term maintenance and operations program efforts.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 420,000 440,000 450,000 450,000 450,000 2,210,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 420,000 440,000 450,000 450,000 450,000 2,210,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 420,000 440,000 450,000 450,000 450,000 2,210,000
CIP# 26
Financial Plan Page 395 Page 807 of 954
Capital Improvement Plan
Project Number Project Name
1000062 Water Meters and Boxes
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project funds the material cost for water meters, meter appurtenances, and meter boxes where water distribution staff needs to
remove or repair public water meters within the distribution system that are reported to be defective. The objective of the project is to
increase accuracy and reliability of public water meters, and efficiently manage all water resources in a cost-effective manner. When
leaks are suspected, water distribution staff will use best available technology to monitor the water service area (pressure zone) using:
leak detection equipment, sound correlators, radio monitoring telemetry of water flows around a pressure zone, and pilot tests by the
water distribution staff for a temporary district metering area.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 335,000 343,000 350,000 350,000 350,000 1,728,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 167,500 171,500 175,000 175,000 175,000 864,000
602 - Sewer Fund 167,500 171,500 175,000 175,000 175,000 864,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 167,500 171,500 175,000 175,000 175,000 864,000
Water Fund 167,500 171,500 175,000 175,000 175,000 864,000
CIP# 27
Financial Plan Page 396 Page 808 of 954
Capital Improvement Plan
Project Number Project Name
1000525 Parking Enforcement Equipment at Gate Entry
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type New Asset
Purpose and Need
The current parking garage payment and gating equipment installed several years ago already requires daily maintenance and
troubleshooting by Parking Services staff. This garage equipment does not integrate with new enforcement technology, nor does it
integrate with the recently installed on-street multi-space pay stations. This project will replace the existing payment and gating
equipment with a gateless system that uses pay stations and mobile payment technology to provide a seamless, integrated experience
for our customers. The new equipment will allow Parking Services staff to enforce paid parking in the garages more efficiently. The
new equipment will also save staff time from troubleshooting hardware issues and reduce customers’ frustrations when parking
downtown.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 300,000 0 0 0 0 300,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
611 - Parking Fund 300,000 0 0 0 0 300,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parking Fund 300,000 0 0 0 0 300,000
CIP# 28
Financial Plan Page 397 Page 809 of 954
Capital Improvement Plan
Project Number Project Name
2001062
ATP - Railroad Safety Trail (Orcutt to Tiburon)
and Bullock Culvert Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
This project includes closing the existing gap in the Railroad Safety Trail within the Orcutt Area, extending the shared-use path parallel
to Bullock Lane between Tiburon Drive and Orcutt road. Project also includes reconstruction of the existing narrow culvert on Bullock
Lane to provide width for two auto lanes, a shared-use path on the west side and continuous sidewalks on the east side.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 300,000 100,000 2,000,000 0 0 2,400,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
515 - OASP Transportation
Impact Fee Fund 300,000 100,000 2,000,000 0 0 2,400,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
OASP Impact Fee Fund 300,000 100,000 2,000,000 0 0 2,400,000
CIP# 29
Financial Plan Page 398 Page 810 of 954
Capital Improvement Plan
Project Number Project Name
1000031 Parking Lot Maintenance
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The total area of City maintained parking lots is approximately 360,000 square feet or 8.3 acres. In order to increase the percentage of
lot surfaces in good condition, regular maintenance needs to be completed. The following parking lots have been identified for
maintenance and repair:
2023-24: Meadow Park, Fire Station 2, and ongoing minor repairs.
2024-25: Santa Rosa Park, Damon Garcia Sports Complex, Throop Park, Mitchell Park and SLO Senior Center, Johnson Park and
ongoing minor repairs.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 285,000 745,000 515,000 1,330,000 615,000 3,490,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 285,000 745,000 515,000 1,330,000 615,000 3,490,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 530,000 0 0 0 530,000
Local Revenue Measure 285,000 215,000 515,000 1,330,000 615,000 2,960,000
CIP# 30
Financial Plan Page 399 Page 811 of 954
Capital Improvement Plan
Project Number Project Name
91147 Water Utility Trench Repair
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The project includes repairs to paved areas by Job Order Contract (JOC) where water distribution staff needs to remove, or repair
service connections within the public right of way. The objective of the project is to remove city owned polybutylene service
connections, cast iron fittings, deteriorated water pipes, and to efficiently replace several temporary asphalt patches with permanent
pavement using bulk orders from the JOC.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 280,000 280,000 280,000 280,000 280,000 1,400,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 280,000 280,000 280,000 280,000 280,000 1,400,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 280,000 280,000 280,000 280,000 280,000 1,400,000
CIP# 31
Financial Plan Page 400 Page 812 of 954
Capital Improvement Plan
Project Number Project Name
91149 Water Valve Cover Adjustments
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The project includes raising or lowering water valve covers in conjunction with City road paving operations. The objective of the project
is to protect existing water valves and access covers from damage by paving machinery, and to efficiently complete paving operations
within the roadway.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 276,000 35,000 35,000 35,000 35,000 416,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 276,000 35,000 35,000 35,000 35,000 416,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 276,000 35,000 35,000 35,000 35,000 416,000
CIP# 32
Financial Plan Page 401 Page 813 of 954
Capital Improvement Plan
Project Number Project Name
1000561
Sewer-main Replacement: Morro, Mill, Santa
Rosa, and Chorro
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer mains. Some pipes are over 100 years old and are
undersized to handle the current flow rates. Maintenance needs increase dramatically as pipelines reach their flow capacities, or when
they approach the end of their useful life. Pipelines in the public wastewater collection system are inspected using specialized video
equipment that will prioritize periodic cleaning frequencies or recommend a complete replacement. Based on the assessment, this
project is needed for the replacement of sewer mains dating back to 1948 that require high cleaning frequencies, have experienced
structural failures due to root intrusions, and have shown high infiltration flows rates during major storm events.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 253,000 0 0 0 0 253,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 253,000 0 0 0 0 253,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 253,000 0 0 0 0 253,000
CIP# 33
Financial Plan Page 402 Page 814 of 954
Capital Improvement Plan
Project Number Project Name
1000065 Water Distribution System - Point Repairs
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program to provide a reliable water
distribution network including fire protection. The point repair project will address existing deficiencies, and the potential for near-term
failure according to priority. The objective of the project is to explore opportunities to consolidate water distribution service areas
(pressure zones) and construct new pipe interconnections between pressure zones to simplify operations, improve water reuse
operations, reduce pumping needs, and eliminate pump stations or tanks that would otherwise require replacement. The project efforts
may include engineering reports, updates to the computer hydraulic model, construction plans for point repairs, construction
management services, tank re-coatings, pump maintenance, updates to construction water filling stations, materials for point repairs,
grant applications, and field testing of water distribution infrastructure.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 250,000 0 250,000 0 250,000 750,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 250,000 0 250,000 0 250,000 750,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 250,000 0 250,000 0 250,000 750,000
CIP# 34
Financial Plan Page 403 Page 815 of 954
Capital Improvement Plan
Project Number Project Name
1000542 Water Treatment Plant – Asset Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type
Annual Asset Maintenance, Asset
Replacement
Purpose and Need
The City’s Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet
changing water quality requirements. In April of 2008, another major upgrade project was completed that replaced older equipment,
added additional storage capacity for treated water, and enhanced treatment processes. The ongoing maintenance of the facilities and
equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and ensure staff’s ability to operate the
plant and treat water to State and Federal standards. The proposed maintenance projects include maintenance to ozone system,
chemical storage system, air compressor, package thickener, aluminum bulk tank replacement, lab analyzer replacement, polymer
mixing unit rehabilitation, rehabilitation of pump station pressure sustaining valves, facility roof repairs, and the development of a
Facility Infrastructure Renewal Strategy. The renewal strategy will allow plant staff to prioritize Water Treatment Plant related capital
improvement projects for the next decade. An asset management plan will also be developed to track infrastructure performance and
maintenance cycles.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 245,000 115,000 145,000 45,000 140,000 690,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 245,000 115,000 145,000 45,000 140,000 690,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 245,000 115,000 145,000 45,000 140,000 690,000
CIP# 35
Financial Plan Page 404 Page 816 of 954
Capital Improvement Plan
Project Number Project Name
2001048
Waterline Replacement: Santa Rosa -
Stenner Creek Road to Highland 30-inch
Pipeline
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The water transmission pipeline extending from the Water Treatment Plant to Santa Rosa Road is not constructed of standard material
types or sizes and if a leak occurs, it would be difficult to repair without putting many residents out of water service, triggering boil
water notices across the eastern side of the City. Installed in 1964 using concrete cylinder pipe (CCP) materials, the pipeline does not
meet current seismic standards and is need for replacement within the next 5 years. The existing 27-inch CCP will be replaced with a
new 30-inch seismic restrained ductile iron pipe for the distribution of treated water into the Foothill and Downtown services areas. The
new alignment will follow Environmental Protection Agency (EPA)-recommended design guidelines for “lifeline services” providing
reliable water resources during catastrophic events.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 230,000 0 8,230,000 0 0 8,460,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 230,000 0 8,230,000 0 0 8,460,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 230,000 0 8,230,000 0 0 8,460,000
CIP# 36
Financial Plan Page 405 Page 817 of 954
Capital Improvement Plan
Project Number Project Name
1000503 Annual Public Art Maintenance and Projects
Project Classification Classification Description
CIP Project Function Culture & Recreation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This funding addresses maintenance needs of the public art program for the current collection of artwork. Addressing repairs is
recommended annually during the next five years of the City’s CIP. In addition to maintenance projects, this funding will also allow for
re-painting of Utility Box artwork and temporary public art pieces such as murals and wraps.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 225,000 200,000 100,000 100,000 100,000 725,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
207 - Public Art Private
Sector Fund 225,000 200,000 100,000 100,000 100,000 725,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 75,000 50,000 0 0 0 125,000
Local Revenue Measure 150,000 150,000 100,000 100,000 100,000 600,000
CIP# 37
Financial Plan Page 406 Page 818 of 954
Capital Improvement Plan
Project Number Project Name
1000521 Fleet Replacement: Utilities
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Fleet
Project Type Annual Asset Maintenance
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement
Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture
Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have
been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with
the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 220,000 150,000 948,772 87,500 1,568,000 2,974,272
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 60,000 150,000 715,000 0 995,000 1,920,000
602 - Sewer Fund 85,000 0 20,000 40,000 570,000 715,000
705 - Whale Rock Fund 75,000 0 213,772 47,500 3,000 339,272
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 85,000 0 20,000 40,000 570,000 715,000
Water Fund 60,000 150,000 715,000 0 995,000 1,920,000
Whale Rock Fund 75,000 0 213,772 47,500 3,000 339,272
CIP# 38
Financial Plan Page 407 Page 819 of 954
Capital Improvement Plan
Project Number Project Name
1000514
Emerson Park Amenity Upgrades and
Beautification
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal Other
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
This project received the California Prop. 68 grant award in December 2021 in the amount of $2.8 Million for amenity upgrades and
park beautification at Emerson Park. Park upgrades include construction of restrooms, creation of a small fenced dog park, installation
of an educational garden and amenity upgrades and expansion of the basketball court, playground, perimeter fencing, and addition of
safety lighting. To satisfy the Prop 68 Grant, the project's scheduled completion date is March 2025 and requires additional funding
beyond the $2.8 Million grant amount as outlined below.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 200,000 0 0 0 0 200,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
510 - Parkland Development
Impact Fee - Citywide 200,000 0 0 0 0 200,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parkland Development
Impact Fees 200,000 0 0 0 0 200,000
CIP# 39
Financial Plan Page 408 Page 820 of 954
Capital Improvement Plan
Project Number Project Name
1000516
Fire Station 3&4 Remodel Space Study and
Design
Project Classification Classification Description
CIP Project Function Community Safety
Major City Goal Diversity, Equity, and Inclusion (DEI)
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Purpose and Need
In an effort to make the Fire Department a more inclusive environment and to support the City Council's Major City Goal of Diversity,
Equity and Inclusion, the Fire Department is seeking to remodel the living quarters for Fire Stations 3 and Station 4. Both Stations
were designed with dorm-like sleeping quarters that lack the needed privacy for a multi-gendered staff. Station 4 will also need
bathroom modifications in addition to the living quarters. This project will allow the fire department to conduct a space study and
design, allowing staff to properly plan for the remodel scope and budget requirements.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 200,000 0 1,000,000 0 0 1,200,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 200,000 0 1,000,000 0 0 1,200,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 200,000 0 1,000,000 0 0 1,200,000
CIP# 40
Financial Plan Page 409 Page 821 of 954
Capital Improvement Plan
Project Number Project Name
2001058
ATP - Foothill Boulevard Complete Street
Project
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
This project includes complete street and active transportation safety improvements along Foothill Boulevard between the western city
limits and the UPRR crossing near California Boulevard consistent with the Active Transportation Plan and Bishop Peak/Pacheco
Elementary Safe Routes to School Plan. Improvements include buffered/protected bike lanes, pedestrian crossing improvements, and
speed reduction elements.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 200,000 0 2,400,000 0 0 2,600,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 200,000 0 2,400,000 0 0 2,600,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 200,000 0 0 0 0 200,000
State or Federal Grant 0 0 2,400,000 0 0 2,400,000
CIP# 41
Financial Plan Page 410 Page 822 of 954
Capital Improvement Plan
Project Number Project Name
2001061
ATP - Orcutt Road Railroad Crossing
Upgrades
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
This project includes various improvements to improve multimodal crossing safety at the existing at-grade railroad crossing on Orcutt
Road near the Orcutt Road/Laurel Lane/Bullock Lane intersection. Proposed improvements include sign/striping enhancements,
installation of standard width shared-use paths across both sides of the railroad tracks, installation of pedestrian/bicycle warning
devices/flashers, and extension of narrow center median on Orcutt between Sacramento Street and existing median at railroad
crossing. Improvements are required by Union Pacific Railroad to allow completion of Railroad Safety Trail gap closure in Orcutt Area.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 200,000 0 500,000 0 0 700,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 200,000 0 500,000 0 0 700,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 200,000 0 500,000 0 0 700,000
CIP# 42
Financial Plan Page 411 Page 823 of 954
Capital Improvement Plan
Project Number Project Name
2001050 Sewer Lift Station Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Replacements of pumps, valves, fittings, electrical components, telemetry, and related infrastructure are an ongoing need for reliable
wastewater lift stations. The purpose of this project is to categorize the costs for major asset replacements needed at lift stations in
effort to extend the life of the infrastructure without having to replace the entire facility. The project may include engineering reports,
updates to the computer hydraulic model, construction plans for lift station rehabilitation projects, construction management services,
coatings, pump maintenance, bypass pumping services, telemetry upgrades, electrical repairs, field testing of infrastructure, and early
purchase of materials that are now experiencing long lead times due to delays in supply chains.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 200,000 0 80,000 0 80,000 360,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 200,000 0 80,000 0 80,000 360,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 200,000 0 80,000 0 80,000 360,000
CIP# 43
Financial Plan Page 412 Page 824 of 954
Capital Improvement Plan
Project Number Project Name
1000056 Development Agreement - City Share
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project Yes
Project Classification Transportation
Project Type New Asset
Purpose and Need
This funding supports the City's proportional share of oversized infrastructure constructed by various development projects.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 200,000 0 850,000 560,000 2,300,000 3,910,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 850,000 560,000 2,300,000 3,710,000
405 - Infrastructure Invest
CIP Fund 200,000 0 0 0 0 200,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 200,000 0 0 0 0 200,000
Local Revenue Measure 0 0 850,000 560,000 2,300,000 3,710,000
CIP# 44
Financial Plan Page 413 Page 825 of 954
Capital Improvement Plan
Project Number Project Name
2001032
Pismo Street Retaining Wall - Storm
Response
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type New Asset
Purpose and Need
Since 2008, the hillslope along Pismo Street between Morro and Chorro has be deteriorating, resulting in installation of protective k-rail
barriers chain link fencing to prevent rockfall from injuring the public. In December 2021, additional failures and dislodging of boulders
occurred, necessitating a geotechnical consultant to evaluate the slope. These damages were further exacerbated in the Winter 2023
storm events. The consultant has recommended a long-term fix of a vertical retaining wall to mitigate the issue.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 200,000 0 1,700,000 0 0 1,900,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 200,000 0 1,700,000 0 0 1,900,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 200,000 0 1,700,000 0 0 1,900,000
CIP# 45
Financial Plan Page 414 Page 826 of 954
Capital Improvement Plan
Project Number Project Name
99653
Water Treatment Plant - Major Equipment
Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City’s Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet
changing water quality requirements. In March of 2023, another major upgrade project was completed that replaced older disinfection
equipment, added additional source water capacities needed to enhance the treatment processes. The ongoing maintenance of the
facilities and equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and ensure staff’s ability to
operate the plant and treat water to State and Federal standards. The purpose and need for this project are to contract major
equipment maintenance required for the ozone disinfection system and associated chiller systems. The product vendors conduct the
service maintenance to ensure optimal performance and collaborate with plant operators during normal operations of the disinfection
system.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 189,000 180,000 180,000 180,000 180,000 909,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 189,000 180,000 180,000 180,000 180,000 909,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 189,000 180,000 180,000 180,000 180,000 909,000
CIP# 46
Financial Plan Page 415 Page 827 of 954
Capital Improvement Plan
Project Number Project Name
1000084 Sewer Maintenance Cover Adjustments
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project funds the raising or lowering sewer maintenance covers when the City paves roadways. The objective of the project is to
protect existing sewer maintenance cover frames and pipes from damage by paving machinery, and to efficiently complete paving
operations within the roadway.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 180,000 30,000 30,000 30,000 30,000 300,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 180,000 30,000 30,000 30,000 30,000 300,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 180,000 30,000 30,000 30,000 30,000 300,000
CIP# 47
Financial Plan Page 416 Page 828 of 954
Capital Improvement Plan
Project Number Project Name
91294 Higuera St. Widening - Bridge to Elks
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type Asset Replacement
Purpose and Need
This funding supports the construction phase of a roadway safety improvement project to widen the segment of South Higuera Street
between Bridge Street and Elks Lane to provide width for a center two-way left-turn lane. This project is partially funded through a
Caltrans Highway Safety Improvement Program (HSIP) Grant and was recommended in the City's Traffic Safety Program to address a
collision trend related to vehicle turns entering/exiting adjacent driveways along a street with no existing turn lanes. Street widening will
also provide opportunity to improve on-street bikeways as recommended in the City's Active Transportation Plan and planned with the
Higuera Corridor Complete Street project.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 180,000 0 0 0 0 180,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 180,000 0 0 0 0 180,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
USHA Grant 180,000 0 0 0 0 180,000
CIP# 48
Financial Plan Page 417 Page 829 of 954
Capital Improvement Plan
Project Number Project Name
1000513
Electric Vehicle Charging Station at Various
Facilities
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Public Facility
Project Type New Asset
Purpose and Need
This project provides electric vehicle charging stations to support the City's transition to electric fleet vehicles.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 175,000 100,000 150,000 150,000 150,000 725,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 75,000 100,000 150,000 150,000 150,000 625,000
601 - Water Fund 50,000 0 0 0 0 50,000
602 - Sewer Fund 50,000 0 0 0 0 50,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 75,000 100,000 150,000 150,000 150,000 625,000
Sewer Fund 50,000 0 0 0 0 50,000
Water Fund 50,000 0 0 0 0 50,000
CIP# 49
Financial Plan Page 418 Page 830 of 954
Capital Improvement Plan
Project Number Project Name
99837 Open Space Acquisition
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
The City continues to actively pursue land purchases and conservation easements to enhance the greenbelt around the City, which
protects watersheds and maintains habitat connectivity. This funding is matched by grant funding to implement open space acquisition.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 175,000 150,000 250,000 150,000 150,000 875,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 175,000 150,000 250,000 150,000 150,000 875,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 175,000 150,000 250,000 150,000 150,000 875,000
CIP# 50
Financial Plan Page 419 Page 831 of 954
Capital Improvement Plan
Project Number Project Name
91397 Open Space Maintenance
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project supports continued implementation of the City’s adopted Open Space Maintenance Plan. The ongoing maintenance of all
City Open Space is premised on the protection of natural resources, including plants, animals, geologic and historic features and the
natural areas themselves. Maintenance includes: enhancement to existing trailheads, maintenance and construction of approved and
sustainable trails and open space facilities for passive recreation purposes only, removal of illicit materials and non-authorized trails,
improved user and natural resource safety, land restoration and stewardship projects, invasive species treatment and control, erosion
control and stabilization, education of users via patrols and community outreach, and management of the wildland-urban interface.
Additionally, funding helps establish new open space trails associated with recent acquisitions and planning for public use.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 170,000 170,000 170,000 170,000 320,000 1,000,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 170,000 170,000 170,000 170,000 320,000 1,000,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 170,000 170,000 170,000 170,000 320,000 1,000,000
CIP# 51
Financial Plan Page 420 Page 832 of 954
Capital Improvement Plan
Project Number Project Name
1000029 Bridge Preventative Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City of San Luis Obispo has 38 vehicular bridges and 11 pedestrian bridge ranging in age from one to 100+ years old. In
accordance with Title 23 of the Code of Federal Regulations (Federal Highway Act) and the National Bridge Inspection Standards,
CalTrans provides bridge inspections on vehicular bridges over 20’ in length every 2 to 4 years. The City is committed to providing low-
cost preventative maintenance measures to extend the service life of these structures. The following bridges have been identified for
maintenance:
• 2023 – Murray St. Near Santa Rosa (49C-397) – Crack Sealing / Concrete Repairs
• 2023 – Chorro St. near Monterey/Higuera (49C-405) – Crack Sealing / Concrete Repairs
• 2024 – Broad St. Culvert near Capitolio Way Crack Sealing / Concrete Repairs
• 2024 – Elks Lane over San Luis Obispo Creek (49C-081) – Methacrylate Bridge Deck
• 2024 & 2025 - Various Maintenance Repairs - Crack Sealing / Concrete Repairs - Bridge Locations by Caltrans Bridge Inspection
Assessment Reports
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 150,000 200,000 200,000 200,000 200,000 950,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 150,000 200,000 200,000 200,000 200,000 950,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 150,000 200,000 200,000 200,000 200,000 950,000
CIP# 52
Financial Plan Page 421 Page 833 of 954
Capital Improvement Plan
Project Number Project Name
2001047 Salinas Reservoir Transfer of Ownership Plan
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project Yes
Project Classification Public Facility
Project Type Asset Replacement
Purpose and Need
Salinas Reservoir (also known as Santa Margarita Lake) is located on the upper Salinas River, approximately 10 miles northeast of the
City of San Luis Obispo (City) and captures water from a 112 square-mile watershed. The City has an agreement with U.S. Army
Corps of Engineers (USACE) to receive water from the reservoir. The purpose of this study is to review the terms of the existing
agreement and determine what alternatives may be available should USACE decide to transfer the ownership of the asset to a local
agency.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 150,000 0 0 0 0 150,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 150,000 0 0 0 0 150,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 150,000 0 0 0 0 150,000
CIP# 53
Financial Plan Page 422 Page 834 of 954
Capital Improvement Plan
Project Number Project Name
1000198 Silt Removal
Project Classification Classification Description
CIP Project Function Community Safety
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Silt carried by storm water settles at points in the creek where the storm water's velocity decreases. This reduction in velocity allows
solids suspended in the water to settle out. As these deposits build up, the capacity of the creek decreases and risk of flooding of the
surrounding areas increases. The regular removal of silt restores channel capacity and reduces risk of flooding.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 150,000 150,000 150,000 150,000 150,000 750,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 150,000 150,000 150,000 150,000 150,000 750,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Zone 9 150,000 150,000 150,000 150,000 150,000 750,000
CIP# 54
Financial Plan Page 423 Page 835 of 954
Capital Improvement Plan
Project Number Project Name
1000551 WRRF Power Cogeneration Upgrade
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The City’s Water Resource Recovery Facility (WRRF) upgrade will comply with stricter discharge limits required by the Central Coast
Water Board (CCWB), increase wastewater treatment capacity to serve the community, and to replace aging infrastructure that has
reached the end of their service life. The 2015 WRRF Facilities Plan identified the need for the WRRF upgrade and other infrastructure
needs based on priority. One of those priority projects, is the expansion of the biogas production and emissions control upgrades per
regulatory requirements. This project will study the increase of bio-gas production using field measurements of the new digester
system and develop a plan to upgrade the emission treatment system per regulatory requirements. This project will be coordinate with
the California Resiliency Challenge and the Department of Energy’s models to consider alternatives for sustainable power solutions.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 150,000 0 1,475,000 0 0 1,625,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 150,000 0 1,475,000 0 0 1,625,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 150,000 0 1,475,000 0 0 1,625,000
CIP# 55
Financial Plan Page 424 Page 836 of 954
Capital Improvement Plan
Project Number Project Name
2001055 WRRF - Building Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The WRRF has been in operation since the 1930’s with various levels of upgrades in 1964, 1992, and most recently in 2022. The
facilities housing the staff includes the laboratory, operations building, maintenance shed, and the administration building, which have
not been upgraded since their original construction. This building maintenance category will provide asset replacement funds to
renovate ancillary facilities and extend the life of the facility. The current needs include replacement of the laboratory chemical vent, air
circulation fans, HVAC system, and security upgrades to the existing doors.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 150,000 0 825,000 0 0 975,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 150,000 0 825,000 0 0 975,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 150,000 0 825,000 0 0 975,000
CIP# 56
Financial Plan Page 425 Page 837 of 954
Capital Improvement Plan
Project Number Project Name
1000073 Vision Zero Program Implementation
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project supports implementation of the City's Traffic Safety/Vision Zero program, funding the highest-priority safety and
operational improvements to support the City's adopted goal to eliminate traffic-related fatalities and severe injuries citywide.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 140,000 120,000 120,000 120,000 120,000 620,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 140,000 120,000 120,000 120,000 120,000 620,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 140,000 120,000 120,000 120,000 120,000 620,000
CIP# 57
Financial Plan Page 426 Page 838 of 954
Capital Improvement Plan
Project Number Project Name
1000032 Pedestrian and Bicycle Pathway Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
There are approximately 6.5 miles of asphalt concrete pathways and bike paths within the City. Examples of these paths are the
Railroad Safety Trail, the Bob Jones Trail, and various pathways located within City parks. These pathways are used by bicycles and
pedestrians, along with occasional service vehicles. To maintain accessibility to these facilities and reduce the risk of accidents,
regular maintenance of pathways is important.
2023-24: Various Locations
2024-25: Various Locations, Railroad Safety Trail
2025-26: Various Locations, Railroad Safety Trail, Andrews and Johnson Bike Path
2026-27: Various Locations, Brookpine and Spanish Oaks Trail
2027-28: Various Locations, Pavement Area 2 & 3 Bike Path Sealing
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 125,000 435,000 365,000 400,000 300,000 1,625,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 125,000 435,000 365,000 400,000 300,000 1,625,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 275,000 150,000 0 0 425,000
Local Revenue Measure 125,000 160,000 215,000 400,000 300,000 1,200,000
CIP# 58
Financial Plan Page 427 Page 839 of 954
Capital Improvement Plan
Project Number Project Name
1000527
Wastewater Collections System - Point
Repairs
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Point repairs of sewer mains and related infrastructure is necessary for a reliable wastewater collection system. This point repair
project will address existing deficiencies in a surgical manner and identify potential failures in the public wastewater collection system
using video inspections of public mains. The objective of the point repair project is to explore opportunities to improve wastewater
catchment areas in a surgical method with limited impacts to traffic circulation and paved roads. The project efforts may include
engineering reports, video inspections, updates to the computer hydraulic model, construction plans for point repairs, construction
management services, re-coatings of maintenance structures (MHs), research for grants programs, and field testing of the wastewater
collection system. The following projects have been identified in this financial plan: elimination of sewer pipes along backyard
easements, off-set joints along the pipe between maintenance structures, and computer modeling efforts of the proposed hydraulic
modifications.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 120,000 0 120,000 0 120,000 360,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 120,000 0 120,000 0 120,000 360,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 120,000 0 120,000 0 120,000 360,000
CIP# 59
Financial Plan Page 428 Page 840 of 954
Capital Improvement Plan
Project Number Project Name
90849 Sidewalk Replacement and Installation
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City has an established system of streets with curbs, gutters, and sidewalks. The City’s sidewalk system is comprised of 202 miles
of sidewalk and 2436 points at intersections where pedestrians cross the street. New replacement installations of sidewalk and curb
ramps are required to continue the City’s program to provide a complete and accessible pedestrian path of travel.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 100,000 150,000 250,000 250,000 250,000 1,000,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 100,000 150,000 250,000 250,000 250,000 1,000,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 100,000 150,000 250,000 250,000 250,000 1,000,000
CIP# 60
Financial Plan Page 429 Page 841 of 954
Capital Improvement Plan
Project Number Project Name
2001040
Waterline Replacement: Chorro - Highland to
Meinecke 24-inch Pipeline Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The water transmission pipeline along Chorro Street from Highland to Meinecke is scheduled for replacement by the Water Master
Plan. Installed in 1953 using concrete cylinder pipe (CCP) and cast-iron materials, the pipeline does not meet current seismic
standards and is need for replacement within the next 5 years. The existing 18-inch CCP will be replaced with a new 24-inch seismic
restrained ductile iron pipe for the distribution of treated water into the Foothill and Downtown services areas. The new alignment will
follow Environmental Protection Agency (EPA)-recommended design guidelines for “lifeline services” providing reliable water
resources during catastrophic events. This project will allow bypass pumping opportunities for future pipeline replacement projects and
future interconnections between the two major pressure zones; High Pressure and the Downtown/Foothill Zone.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 100,000 1,900,000 0 0 0 2,000,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 100,000 1,900,000 0 0 0 2,000,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 100,000 1,900,000 0 0 0 2,000,000
CIP# 61
Financial Plan Page 430 Page 842 of 954
Capital Improvement Plan
Project Number Project Name
1000050 871 Marsh Street Structure Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
In 2018, the City completed a Parking Structure Capital Asset Management Plan that identify necessary maintenance projects that will
repair deficiencies, improve aesthetics and extend the useful life of each structure. 871 Marsh is the City’s second oldest parking
structure in the City and needs significant maintenance. This funding will address various maintenance improvements at the structure.
Future parking structure maintenance funding will be combined into one project (2001030).
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 100,000 0 0 0 0 100,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
611 - Parking Fund 100,000 0 0 0 0 100,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parking Fund 100,000 0 0 0 0 100,000
CIP# 62
Financial Plan Page 431 Page 843 of 954
Capital Improvement Plan
Project Number Project Name
1000532 Roundabout Public Art Installations
Project Classification Classification Description
CIP Project Function Culture & Recreation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project is to initiate planning for installation of public art in the center of current or planned City roundabouts.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 100,000 100,000 100,000 200,000 200,000 700,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
207 - Public Art Private
Sector Fund 100,000 100,000 100,000 200,000 200,000 700,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 100,000 100,000 100,000 200,000 200,000 700,000
CIP# 63
Financial Plan Page 432 Page 844 of 954
Capital Improvement Plan
Project Number Project Name
1000049 842 Palm Parking Structure Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
In 2018, the City completed a Parking Structure Capital Asset Management Plan that identify necessary maintenance projects that will
repair deficiencies, improve aesthetics and extend the useful life of each structure. 842 Palm is the City’s oldest parking structure and
needs significant maintenance. This funding will address various maintenance improvements at the structure. Future parking structure
maintenance funding will be combined into one project (2001030).
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 100,000 0 0 0 0 100,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
611 - Parking Fund 100,000 0 0 0 0 100,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parking Fund 100,000 0 0 0 0 100,000
CIP# 64
Financial Plan Page 433 Page 845 of 954
Capital Improvement Plan
Project Number Project Name
2001029 License Plate Recognition Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Parking Enforcement currently operates 2 Genetec License Plate Recognition camera systems (LPR). The LPR units were purchased
in 2017. Hardware for both units will no longer be supported as of the end of the 2023 calendar year.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 97,000 0 0 0 0 97,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
611 - Parking Fund 97,000 0 0 0 0 97,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parking Fund 97,000 0 0 0 0 97,000
CIP# 65
Financial Plan Page 434 Page 846 of 954
Capital Improvement Plan
Project Number Project Name
1000506 Bus Shelter Replacements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type Asset Replacement
Purpose and Need
This is an ongoing program to replace bus shelters at various locations as they reach the end of their useful life.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 90,000 90,000 90,000 90,000 90,000 450,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
621 - Transit Fund 90,000 90,000 90,000 90,000 90,000 450,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
State or Federal Grant 90,000 90,000 90,000 90,000 90,000 450,000
CIP# 66
Financial Plan Page 435 Page 847 of 954
Capital Improvement Plan
Project Number Project Name
91616 Street Lights - Annual Asset Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This annual asset account supports the establishment of new streetlights requested by the community and maintenance/replacement
of existing streetlights as needed.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 75,000 75,000 75,000 80,000 80,000 385,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 75,000 75,000 75,000 80,000 80,000 385,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 75,000 75,000 75,000 80,000 80,000 385,000
CIP# 67
Financial Plan Page 436 Page 848 of 954
Capital Improvement Plan
Project Number Project Name
1000519 Fleet Replacement: Parks and Recreation
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Fleet
Project Type Annual Asset Maintenance
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement
Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture
Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have
been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with
the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 75,000 0 70,000 80,000 85,000 310,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
402 - Fleet Repl Fund 75,000 0 70,000 80,000 85,000 310,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 0 70,000 0 0 70,000
Local Revenue Measure 75,000 0 0 80,000 85,000 240,000
CIP# 68
Financial Plan Page 437 Page 849 of 954
Capital Improvement Plan
Project Number Project Name
90943 Traffic Signs & Striping Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City is responsible for maintaining approximately 15,000 traffic signs and 134 miles of roadway striping. The Federal Highway
Administration has adopted a mandate requiring public agencies to maintain minimum reflectivity standards for signs and pavement
markings to help ensure nighttime visibility. Specifically, this funding will be used to replace signs, lanes lines, stop bars, marked
crosswalks and other roadway indicators enhancing safety for motorists, cyclist and pedestrians.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 75,000 75,000 75,000 75,000 75,000 375,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 75,000 75,000 75,000 75,000 75,000 375,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 75,000 75,000 75,000 75,000 75,000 375,000
CIP# 69
Financial Plan Page 438 Page 850 of 954
Capital Improvement Plan
Project Number Project Name
1000082 Sewer Lift Station Replacement - Silver City
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The Silver City Lift Station is a Smith and Loveless dry/wet well design and was put into service in 1971. The existing six-inch asbestos
concrete force main pumps under San Luis Obispo Creek (it is encased under the creek) approximately 765 feet to a manhole
upstream of the Laguna Lift Station. The Silver City lift station operates with two 450 gpm, 18.5 horsepower pumps. The station
replacement will be located in the same current location proximity. An additional property acquisition and easements will be required to
relocate both the new lift station and force main. In addition to the force main replacement, it will require the pipe to be encased in the
San Luis creek crossing. The replacement lift station will accommodate a portion of the future development anticipated in the Margarita
Area Specific Plan.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 70,000 100,000 1,980,000 0 0 2,150,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 70,000 100,000 1,980,000 0 0 2,150,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 70,000 100,000 1,980,000 0 0 2,150,000
CIP# 70
Financial Plan Page 439 Page 851 of 954
Capital Improvement Plan
Project Number Project Name
91335 Whale Rock Reservoir - Asset Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Whale Rock Reservoir was originally constructed in 1961. In 2018, an assessment was completed to evaluate the condition of the
Dam’s spillway and related infrastructure per requirements set by the Division of Safety of Dams (DSOD). The recommendations by
the assessment include capital improvement projects required to operate the facility in a safe and reliable manner per DSOD
requirements. Additionally, the ongoing maintenance of the facility and associated infrastructure at the Whale Rock Reservoir are
necessary to prolong the useful life of the facilities and ensure staff’s ability to operate the dam and deliver water to the City.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 67,542 128,923 45,398 20,000 220,000 481,863
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
705 - Whale Rock Fund 67,542 128,923 45,398 20,000 220,000 481,863
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Whale Rock Fund 67,542 128,923 45,398 20,000 220,000 481,863
CIP# 71
Financial Plan Page 440 Page 852 of 954
Capital Improvement Plan
Project Number Project Name
1000063 Fire Hydrants
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project funds the materials cost for City owned fire hydrant assemblies when they need to be replaced if defective, leaking, or
corroded. This project protects public health and the City’s water resources from waste.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 55,000 55,000 55,000 55,000 55,000 275,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 55,000 55,000 55,000 55,000 55,000 275,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 55,000 55,000 55,000 55,000 55,000 275,000
CIP# 72
Financial Plan Page 441 Page 853 of 954
Capital Improvement Plan
Project Number Project Name
1000537 Transportation Monitoring & Modeling Update
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
As required under the General Plan Circulation Element (Policy 7.7), the City conducts auto/bicycle/pedestrian traffic volume counts
citywide every other year to monitor mode shift changes and traffic patterns resulting from land use projects, circulation improvements,
and changes in travel behavior. Up-to-date traffic counts help support a variety of ongoing projects and programs, including tracking
progress towards adopted mode shift targets, supporting traffic studies prepared for development entitlement review and local
circulation studies, programing traffic signal timing, guiding future roadway improvements, and facilitating the City’s Traffic
Safety/Vision Zero, Operations, and Neighborhood Traffic Management Programs. This funding also supports ongoing minor updates
to the City's Travel Demand Forecasting Model, which are necessary for preparing future traffic volume forecasts and vehicle miles
traveled (VMT) projections for development review and internal planning and monitoring.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 55,000 55,000 55,000 55,000 55,000 275,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
507 - Transportation Impact
Fee Fund 55,000 55,000 55,000 55,000 55,000 275,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Transportation Development
Impact Fee 55,000 55,000 55,000 55,000 55,000 275,000
CIP# 73
Financial Plan Page 442 Page 854 of 954
Capital Improvement Plan
Project Number Project Name
91617
Whale Rock Transmission Pipeline
Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The 17.6 miles of pipeline conduit that transport water from the Whale Rock Reservoir (WRR) to the City of San Luis Obispo, Cal Poly,
and California Men’s Colony is 57 years old. Given the aging infrastructure, an assessment of the pipeline’s condition has been
completed to properly schedule repairs or replacement projects. Understanding the condition of the WRR pipeline has assisted in
planning for long term pipeline reliability and associated maintenance needs, minimizing pipeline failures and associated disruptions,
cost, and water leaks. The following scheduled repairs will include point repairs or replacement of pipe segments that have
experienced corrosion or have failed the structural integrity assessment.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 51,000 0 60,000 510,000 550,300 1,171,300
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
705 - Whale Rock Fund 51,000 0 60,000 510,000 550,300 1,171,300
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Whale Rock Fund 51,000 0 60,000 510,000 550,300 1,171,300
CIP# 74
Financial Plan Page 443 Page 855 of 954
Capital Improvement Plan
Project Number Project Name
2001053 Waterline Abandonment & Connections
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and
fire protection. This waterline abandonment and connections project will address existing deficiencies of public water mains in a
surgical manner by eliminating publicly maintained lines that need to get consolidated into a new pressure zone or eliminating
distribution mains running though backyard easements.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 50,000 50,000 50,000 50,000 50,000 250,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 50,000 50,000 50,000 50,000 50,000 250,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 50,000 50,000 50,000 50,000 50,000 250,000
CIP# 75
Financial Plan Page 444 Page 856 of 954
Capital Improvement Plan
Project Number Project Name
91612 Neighborhood Traffic Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This funding continues the efforts to improve traffic conditions in existing neighborhoods, including collector and arterial streets with
fronting residential. Each year the City receives requests for solutions to speeding and cut-through traffic problems. This funding
allows for implementation of small to moderately sized projects to correct traffic related problems. Occasionally, larger needs are
scoped and developed into stand-alone projects and budgeted individually.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 45,000 30,000 30,000 30,000 30,000 165,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 45,000 30,000 30,000 30,000 30,000 165,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 45,000 30,000 30,000 30,000 30,000 165,000
CIP# 76
Financial Plan Page 445 Page 857 of 954
Capital Improvement Plan
Project Number Project Name
1000157 Banner Arms, Bench Arm Rests, Signs
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
Project provides banner arms, banners, arm rests and signs in the downtown.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 25,000 25,000 25,000 25,000 25,000 125,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 25,000 25,000 25,000 25,000 25,000 125,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 25,000 25,000 25,000 25,000 25,000 125,000
CIP# 77
Financial Plan Page 446 Page 858 of 954
Capital Improvement Plan
Project Number Project Name
91740 Sewer Utility Trench Repair
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project includes repairs to paved areas by Job Order Contract (JOC) where wastewater collection staff addressed system failures,
or potholing operations along the public sewer system. The objective of the project is to efficiently replace several temporary asphalt
patches within the roadway that resulted from potholing operations with permanent pavement using bulk orders from the JOC.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 25,000 25,000 25,000 25,000 25,000 125,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 25,000 25,000 25,000 25,000 25,000 125,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 25,000 25,000 25,000 25,000 25,000 125,000
CIP# 78
Financial Plan Page 447 Page 859 of 954
Capital Improvement Plan
Project Number Project Name
1000093
Sewer-main Replacement: Serrano, Bressi,
Dana and Higuera Pipeline Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some
pipes are over 100 years old and are undersized. Maintenance needs and costs dramatically increase as pipeline and equipment
approach the end of their useful life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or
infiltration flows based on recorded sewer spills, and high recorded flow rates during major storm events.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 25,000 1,275,000 0 0 0 1,300,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 25,000 1,275,000 0 0 0 1,300,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 25,000 1,275,000 0 0 0 1,300,000
CIP# 79
Financial Plan Page 448 Page 860 of 954
Capital Improvement Plan
Project Number Project Name
1000030 Laguna Lake Golf Course Maintenance
Project Classification Classification Description
CIP Project Function Culture & Recreation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This Annual Asset Maintenance Project for the Laguna Lake Golf Course provides funding for work activities such as replacement of
the 40-year-old irrigation system, increasing water efficiencies by reducing leaks, and increase playability and safety of the turf.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 20,000 20,000 20,000 20,000 20,000 100,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 20,000 20,000 20,000 20,000 20,000 100,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 20,000 20,000 20,000 20,000 20,000 100,000
CIP# 80
Financial Plan Page 449 Page 861 of 954
Capital Improvement Plan
Project Number Project Name
91734
Water Treatment Plant - Water Meter
Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project will install new water meters that track water resources coming in and out of the Water Treatment Plant in order to improve
the accounting of volumes and flows impacting the water distributions system during water loss audits.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 10,000 30,000 54,800 0 0 94,800
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 10,000 30,000 54,800 0 0 94,800
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 10,000 30,000 54,800 0 0 94,800
CIP# 81
Financial Plan Page 450 Page 862 of 954
Capital Improvement Plan
Project Number Project Name
1000052
Buchon-Santa Rosa Intersection
Improvements
Project Classification Classification Description
CIP Project Function Community Safety
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The Intersection of Santa Rosa and Buchon has been flooding during rain events. This project will reduce flooding issues and improve
pedestrian safety by updating the curb ramps and provide a high visibility crosswalk.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 100,000 0 0 100,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 100,000 0 0 100,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 100,000 0 0 100,000
CIP# 82
Financial Plan Page 451 Page 863 of 954
Capital Improvement Plan
Project Number Project Name
1000150
Sustainable Groundwater Management Act
GSP
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City of San Luis Obispo formed a Groundwater Sustainability Agency (GSA) in June of 2017 for management of the San Luis
Valley Groundwater Basin (SLO Basin) in accordance with the Sustainable Groundwater Management Act (SGMA). This project will
provide financial resources to collaborate with GSA stakeholders to effectively manage the groundwater basin in the city, which may
include preparation of research studies, field investigations, legal documents, grant applications, and regional participation in the
development and implementation of a groundwater sustainability plan.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 150,000 150,000 150,000 150,000 600,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 150,000 150,000 150,000 150,000 600,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 150,000 150,000 150,000 150,000 600,000
CIP# 83
Financial Plan Page 452 Page 864 of 954
Capital Improvement Plan
Project Number Project Name
1000102 Parking Lot Maintenance - Bus Yard
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project will rehabilitate the pavement at the Bus Yard facility front parking lot and provide improved functional area for future
electric vehicles and expansion of the bus fleet.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 25,000 500,000 0 0 525,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
621 - Transit Fund 0 25,000 500,000 0 0 525,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
State or Federal Grant 0 25,000 500,000 0 0 525,000
CIP# 84
Financial Plan Page 453 Page 865 of 954
Capital Improvement Plan
Project Number Project Name
1000552 WRRF - Demolish Old Effluent Structure
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
This project will demolish the old effluent structure at the Water Resource Recovery Facility.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 50,000 495,000 545,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 0 0 50,000 495,000 545,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 0 0 50,000 495,000 545,000
CIP# 85
Financial Plan Page 454 Page 866 of 954
Capital Improvement Plan
Project Number Project Name
2001036 Dalidio Drive Access Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Purpose and Need
Includes design and construction of a new mid-block driveway on Dalidio Drive between the Post Office driveway and Froom Ranch
Way to improve access to SLO Promenade retail center and Post Office. Project would provide left turn into SLO Promenade retail
center from southbound Dalidio Drive and opportunity for U-turns for drivers exiting the Post Office and desiring to return northbound
towards Madonna Road.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 25,000 75,000 100,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 0 25,000 75,000 100,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 0 25,000 75,000 100,000
CIP# 86
Financial Plan Page 455 Page 867 of 954
Capital Improvement Plan
Project Number Project Name
1000077 WRRF Asset Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance, New Asset
Purpose and Need
The City’s Water Resource Recovery Facility (WRRF) was originally constructed in 1941. In 1993, a significant upgrade to portions of
the plant were completed to meet changing water quality requirements. In September of 2019, another major upgrade project known
as Water Plus was initiated that will replace older equipment, provide additional treatment capacity, enhance disinfection with
ultraviolet light to produce recycled water and reduce the use of disinfection chemicals. During construction, ongoing maintenance of
existing facilities and equipment at the WRRF are necessary to prolong the useful life of the facilities and ensure staff’s ability to
operate the plant and treat water to State and Federal standards until the upgrade is completed. The proposed asset replacement
projects include servicing: screening washer-auger, influent storm pumps, screw press, primary scum pit, grit pumps, grit blowers,
laboratory fans, security lights, chain link fence, and digester cleaning. Construction of these asset replacements will be coordinated
with facility’s infrastructure renewal strategy and will allow plant staff to prioritize capital improvement projects for the next decade.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 125,000 125,000 75,000 200,000 525,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 125,000 125,000 75,000 200,000 525,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 125,000 125,000 75,000 200,000 525,000
CIP# 87
Financial Plan Page 456 Page 868 of 954
Capital Improvement Plan
Project Number Project Name
1000546
Waterline Replacement: Highland at UPRR
and Cal Poly
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and
fire protection. The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable
water storage tanks, two reservoirs, five hydro‐pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over
180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has
reached the end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement by the water
distribution’s infrastructure renewal strategy. The objective of the project is to replace cast-iron pipe or failing materials with pipe
meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against
variations in pressure and flows.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 850,000 0 850,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 0 850,000 0 850,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 0 850,000 0 850,000
CIP# 88
Financial Plan Page 457 Page 869 of 954
Capital Improvement Plan
Project Number Project Name
2001035 Emily Street Extension
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type New Asset
Purpose and Need
Extend roadway and curb, gutter, and sidewalk to the railroad right of way from its existing limits. Create a bike and ped pathway
connection to the end of high street and the railroad station parking lot through UPRR right of way.
Phase 1 – Construction of Roadway Emily Street Extension, Sidewalk Installation behind FS1, and application for UPRR ROW
Phase 2 – Construction of Multimodal connection
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 0 200,000 200,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 0 0 200,000 200,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 0 0 200,000 200,000
CIP# 89
Financial Plan Page 458 Page 870 of 954
Capital Improvement Plan
Project Number Project Name
91252 Prado Road Bridge & Road Widening
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Housing and Homelessness
Partnership Project Yes
Project Classification Transportation
Project Type Asset Replacement
Purpose and Need
The bridge over San Luis Obispo Creek at Prado Road is functionally obsolete and cannot accommodate future City needs. This
project proposes to replace the bridge with a wider section while armoring San Luis Obispo Creek to maximize its hydraulic capacity.
Additionally, the intersection at Prado and South Higuera will be widened with protective features for bicycles and pedestrians to
operate in conjunction with the widened bridge.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 18,373,000 7,750,000 0 0 26,123,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 8,065,000 7,750,000 0 0 15,815,000
405 - Infrastructure Invest
CIP Fund 0 10,000,000 0 0 0 10,000,000
503 - Airport Area Impact
Fee Fund 0 126,000 0 0 0 126,000
507 - Transportation Impact
Fee Fund 0 182,000 0 0 0 182,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
AASP Impact Fee Fund 0 126,000 0 0 0 126,000
Federal HBP Grant 0 6,000,000 0 0 0 6,000,000
General Capital Outlay 0 0 5,000,000 0 0 5,000,000
Infrastructure Investment
Fund 0 10,000,000 0 0 0 10,000,000
Local Revenue Measure 0 0 2,750,000 0 0 2,750,000
State or Federal Grant 0 2,065,000 0 0 0 2,065,000
Transportation Development
Impact Fee 0 182,000 0 0 0 182,000
CIP# 90
Financial Plan Page 459 Page 871 of 954
Capital Improvement Plan
Project Number Project Name
1000522 Major Facility Replacements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Public Facility
Project Type
Annual Asset Maintenance, Asset
Replacement
Purpose and Need
This project will maintain, upgrade, or replace City facilities that serve the community. Funding in this Financial Plan is intended to
support ongoing planning and outreach work for the Public Safety Center.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 350,000 1,040,000 3,100,000 3,500,000 7,990,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 350,000 1,040,000 3,100,000 3,500,000 7,990,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 0 40,000 1,500,000 0 1,540,000
Local Revenue Measure 0 350,000 1,000,000 1,600,000 3,500,000 6,450,000
CIP# 91
Financial Plan Page 460 Page 872 of 954
Capital Improvement Plan
Project Number Project Name
2001033
Downtown Transit Center Rehabilitation
(Transit Fund)
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Transportation
Project Type Asset Replacement
Purpose and Need
The project will include the removal of existing mission style structures, demolition of concrete, add new passenger bus shelters,
interactive kiosks, digital displays, smart bus stop signs, conduit for future opportunity charging, self-cleaning restrooms,
benches/waiting rails, bus pads, ADA improvements, and security cameras. This project will also include new bus shelters similar
RTA.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 140,000 1,500,000 1,640,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
621 - Transit Fund 0 0 0 140,000 1,500,000 1,640,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
State or Federal Grant 0 0 0 140,000 1,500,000 1,640,000
CIP# 92
Financial Plan Page 461 Page 873 of 954
Capital Improvement Plan
Project Number Project Name
2001037
Climate Action Plan Support - Carshare
Program
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
This project includes exploration of a potential car share system in San Luis Obispo, which would provide access to shared
automobiles for short-term rentals. A carshare system would support the goals of the Climate Action, Open Space, & Sustainable
Transportation Plan and Active Transportation Plan by providing the ability for users to pay only for short-term rentals when they need
a vehicle, reducing the financial burden of permanent vehicle ownership and storage. Ultimately, access to carshare could be
integrated with bikeshare, public parking, and transit passes as part of a "mobility as a service/transportation wallet" program, as
recommended in the City's Access and Parking Management Plan.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 0 115,000 115,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 0 0 115,000 115,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 0 0 115,000 115,000
CIP# 93
Financial Plan Page 462 Page 874 of 954
Capital Improvement Plan
Project Number Project Name
91739 Sewer Inflow/Infiltration Reduction
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Replacement of wastewater collection pipes, and related infrastructure is an ongoing program for a reliable sanitary sewer collection
system. The program’s inflow and infiltration program will conduct pipe integrity tests, video inspections of public sewers, smoke
testing of service areas, and schedule point repairs to address existing deficiencies according to priority. The objective of the project is
to explore opportunities to consolidate sewer collection systems that may run parallel along roadways and construct new sewer lateral
interconnections that can simplify maintenance operations, reduce illegal stormwater connections into the sewer, and rehabilitate
fractures in clay pipes that may be experiencing groundwater infiltration due to soil settlements or root instructions. A decrease of
infiltration flows will result in lower energy costs needed to treat sewer volumes at the wastewater treatment plant. The project efforts
may include sewer lateral rebates, engineering reports, construction plans for point repairs, construction management services, sewer
manhole re-coatings, sewer flow monitoring studies, and field testing of wastewater piping infrastructure.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 250,000 250,000 250,000 250,000 1,000,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 250,000 250,000 250,000 250,000 1,000,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 250,000 250,000 250,000 250,000 1,000,000
CIP# 94
Financial Plan Page 463 Page 875 of 954
Capital Improvement Plan
Project Number Project Name
2001052 Water Storage Tank Inspection and Cleaning
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
Storage capacity of treated water is an essential function of a water distribution system to provide adequate flows and pressures
throughout the community. In addition to water storage tanks at the Water Treatment Plant, there are nine water storage tanks located
within the City’s distribution system, and a few have been in operation since the early 1940s. Maintenance of water storage facilities is
necessary to prolong the useful life of these assets and ensures staff’s ability to operate the water system to State and Federal
standards. This project will fund inspection, cleaning, and disinfection cycles need at the water storage tanks to meet State and
Federal standards.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 50,000 250,000 300,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 0 50,000 250,000 300,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 0 50,000 250,000 300,000
CIP# 95
Financial Plan Page 464 Page 876 of 954
Capital Improvement Plan
Project Number Project Name
2001031
Laguna Lake Golf Course Irrigation
Improvements
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The life expectancy of a golf course technical irrigation system varies from 10 to 30 years. The Laguna Lake Golf Course irrigation was
installed in 1976, exceeding its functional lifespan by 16 years. Maintenance staff currently must make weekly repairs, taking staff
away from required maintenance work and improvements to support the sustainability of the course. The Parks and Recreation master
plan, (Parks + Recreation Blueprint for the Future: 2021-2041) highlighted the LLGC’s failing irrigation infrastructure and has a Mid-
Term goal (5 to 10 years) to assess and implement a rehabilitation of the irrigation and utilities at the course.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 0 300,000 300,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 0 0 300,000 300,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 0 0 300,000 300,000
CIP# 96
Financial Plan Page 465 Page 877 of 954
Capital Improvement Plan
Project Number Project Name
2001028 Lead by Example
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Public Facility
Project Type New Asset
Purpose and Need
Resolution-11159 (2020 Series) establishes a goal of municipal operations carbon neutrality by 2030, which includes a building sector
goal to “[…] eliminate fossil fuel use in buildings and facilities.” As part of the 2021-23 Financial Plan, staff developed a building
decarbonization and electrification roadmap. This project would begin implementing the roadmap, with design work on major projects
in years one through three of the Capital Improvement Program, and ongoing construction through year five of the Capital
Improvement Program.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 100,000 78,000 765,000 570,000 1,513,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 100,000 78,000 765,000 570,000 1,513,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 25,000 78,000 765,000 570,000 1,438,000
State or Federal Grant 0 75,000 0 0 0 75,000
CIP# 97
Financial Plan Page 466 Page 878 of 954
Capital Improvement Plan
Project Number Project Name
2001054
Waterline Replacement: Patricia, Highland,
and La Entrada
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type New Asset
Purpose and Need
The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage
tanks, two reservoirs, five hydro‐pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of
pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the
end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement in the water masterplan. The
objective of the project is to replace asphalt cement or cast-iron pipe with pipe meeting new standards by the American Water Works
Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 127,000 1,397,000 1,524,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 0 127,000 1,397,000 1,524,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 0 127,000 1,397,000 1,524,000
CIP# 98
Financial Plan Page 467 Page 879 of 954
Capital Improvement Plan
Project Number Project Name
1000508 City Hall Exterior Lighting
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Public Facility
Project Type New Asset
Purpose and Need
This project is to install safety and accent lighting for the exterior of City Hall.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 50,000 200,000 0 250,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 50,000 200,000 0 250,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 0 50,000 200,000 0 250,000
CIP# 99
Financial Plan Page 468 Page 880 of 954
Capital Improvement Plan
Project Number Project Name
1000524 Old Garden Creek Retaining Wall
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
A portion of Old Garden Creek immediately upstream and west of Cuesta Drive contains a retaining wall that is failing. The wall is
immediately adjacent to several trees which are destabilizing the wall as they grow and increase in size. The project will likely require
the removal of trees and replacement the failing wall.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 175,000 0 800,000 975,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 175,000 0 800,000 975,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 175,000 0 800,000 975,000
CIP# 100
Financial Plan Page 469 Page 881 of 954
Capital Improvement Plan
Project Number Project Name
1000553 Fleet Replacement: Police
Project Classification Classification Description
CIP Project Function Community Safety
Major City Goal Other
Partnership Project No
Project Classification Fleet
Project Type
Annual Asset Maintenance, Asset
Replacement, New Asset
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement
Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture
Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have
been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with
the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 90,000 350,000 482,000 1,201,500 2,123,500
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 0 127,000 631,500 758,500
402 - Fleet Repl Fund 0 90,000 350,000 355,000 570,000 1,365,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 90,000 350,000 482,000 1,201,500 2,123,500
CIP# 101
Financial Plan Page 470 Page 882 of 954
Capital Improvement Plan
Project Number Project Name
2001038
Sewer-main Replacement: Bee Bee - South
Street to Sandercock
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The City’s wastewater collection system includes approximately 148 miles of sewer mains. Some pipes are over 100 years old and are
undersized to handle the current flow rates. Maintenance needs increase dramatically as pipelines reach their flow capacities, or when
they approach the end of their useful life. Pipelines in the public wastewater collection system are inspected using specialized video
equipment that will prioritize periodic cleaning frequencies or recommend a complete replacement. Based on the assessment, this
project is needed for the replacement of sewer mains dating back to 1927 that require high cleaning frequencies, have experienced
structural failures due to root intrusions, and have shown high infiltration flows rates during major storm events.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 400,000 0 400,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 0 0 400,000 0 400,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 0 0 400,000 0 400,000
CIP# 102
Financial Plan Page 471 Page 883 of 954
Capital Improvement Plan
Project Number Project Name
91368
T-3 Water Storage Tank Replacement - High
Pressure Zone
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City currently operates two potable reservoirs (Tank #1 and #2) that are estimated to be 60 years old. Reservoir #2 is a 7.44
million-gallon (MG) reservoir equipped with floating covers that had previously been identified to be replaced in 2015. This reservoir
supplies about half of the City’s potable water needs. Because the reservoir is one big basin, the entire storage volume must be taken
out-of-service for reservoir maintenance. The water distribution hydraulic model, identified opportunities to consolidate water
distribution zones to improve operations, reduce pumping needs, eliminate tanks and pump stations that would otherwise require
replacement, improve fire flow, and improve available fire storage. Replacement of Reservoir #2 with a new High-Pressure Zone
(HPZ) water storage tank will include construction of two new 2.5 MG above-ground tanks at the existing reservoir site or equivalent
elevation. This will provide critical redundancy and allow for tank maintenance without service interruption. It will also be designed to
increase water mixing in the reservoir, which will in turn lessen the overall age of water. Older water age contributes to disinfection by-
products, a regulated substance which may be harmful to human health. The study phase will research constructability and identify
funding options, and begin in property acquisition, preliminary designs, and environmental clearances needed to secure State or
Federal funding.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 900,000 500,000 0 0 1,400,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 900,000 500,000 0 0 1,400,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 900,000 500,000 0 0 1,400,000
CIP# 103
Financial Plan Page 472 Page 884 of 954
Capital Improvement Plan
Project Number Project Name
2001039
Sewer-main Replacement: Broad, Murray, and
Chorro
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
This project is needed for the replacement of sewer mains dating back to 1951 that require high cleaning frequencies along backyard
easements, have experienced structural failures due to root intrusions, and have shown high infiltration flows rates during major storm
events. The project will include pipe bursting or open trench replacement, easement acquisition, and reconstruction of sewer
appurtenances.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 0 145,000 145,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 0 0 0 145,000 145,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 0 0 0 145,000 145,000
CIP# 104
Financial Plan Page 473 Page 885 of 954
Capital Improvement Plan
Project Number Project Name
1000092
Sewer-main Replacement: Buchon - Morro to
Johnson Pipeline Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some
pipes are over 100 years old and are undersized. Maintenance requirements increase dramatically as pipeline and equipment
approach the end of their useful life. Pipeline and operational equipment require ongoing maintenance and condition assessment to
prioritize periodic replacement, ensure proper function, and prolong service life. The objective of this project is to replace existing clay
pipes from 1927 with a new 10-inch sewer main serving areas that have shown high inflow or infiltration flows based on recorded
sewer spills, and high recorded flow rates during major storm events. The pipeline replacement project will require re-routing the sewer
flows near the intersection of Johnson and San Luis Drive.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 135,000 2,485,000 2,620,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 0 0 135,000 2,485,000 2,620,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 0 0 135,000 2,485,000 2,620,000
CIP# 105
Financial Plan Page 474 Page 886 of 954
Capital Improvement Plan
Project Number Project Name
1000512 Downtown Zig-Zag Lighting
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
Upgrade the downtown overhead "zig-zag" lighting, originally installed as a temporary pilot project, to a permanent installation,
including expansion to additional streets within the downtown where feasible.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 1,100,000 0 1,100,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 0 1,100,000 0 1,100,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 0 1,100,000 0 1,100,000
CIP# 106
Financial Plan Page 475 Page 887 of 954
Capital Improvement Plan
Project Number Project Name
2001042
Sewer-main Replacement: Chorro - Boysen to
Rougeot
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The 2015 Wastewater Infrastructure Renewal Strategy (IRS or masterplan) identified sewer service areas with capacity constraints
from stormwater infiltrations into the sewer system. One of the capacity constrained areas (Area A) is located north of Foothill and
west of Chorro and is currently undergoing sewer main improvements to remove existing clay sewer pipes with new fused plastic pipes
using high density polyethylene (HDPE). Other on-going improvements to reduce capacity constraints include replacement of sewer
laterals through lateral rebate programs or as triggered by building permit submittals. Additionally, the collaboration with the 790
Foothill development identified the opportunity to improve the conditions in Area A by transferring the sewer serving the project site
and adjacent parcels from Area A to the Area C sewer pipe network, which has available capacity. The proposed pipeline replacement
project will expand on this initial point repair completed by the development and replace the existing 6-inch sewer main along Chorro
Street with a larger pipe from Highland to Meinecke.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 250,000 2,750,000 0 0 3,000,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 250,000 2,750,000 0 0 3,000,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 250,000 2,750,000 0 0 3,000,000
CIP# 107
Financial Plan Page 476 Page 888 of 954
Capital Improvement Plan
Project Number Project Name
1000094 Sewer-main Replacement: Foothill Siphon
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some
pipes are over 100 years old and are undersized. Maintenance requirements increase dramatically as pipeline and equipment
approach the end of their useful life. Pipeline and operational equipment require ongoing maintenance and condition assessment to
prioritize periodic replacement, ensure proper function, and prolong service life. The objective of this project is to replace sewer pipes
from 1951 located in the northwest part of the City that have shown high inflow or infiltration flows based on recorded sewer spills, and
high recorded flow rates during major storm events.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 200,000 250,000 2,750,000 3,200,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 0 200,000 250,000 2,750,000 3,200,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 0 200,000 250,000 2,750,000 3,200,000
CIP# 108
Financial Plan Page 477 Page 889 of 954
Capital Improvement Plan
Project Number Project Name
1000574 Parking Pay Station Installation
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
Installation of on-street and lot pay stations. This funding would be used for the installation of paid parking infrastructure in the
Downtown Core and Upper Monterey Street.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 600,000 600,000 600,000 0 1,800,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
611 - Parking Fund 0 600,000 600,000 600,000 0 1,800,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Parking Fund 0 600,000 600,000 600,000 0 1,800,000
CIP# 109
Financial Plan Page 478 Page 890 of 954
Capital Improvement Plan
Project Number Project Name
1000517 Fire Station 4 Metal Building Gym Space
Project Classification Classification Description
CIP Project Function Community Safety
Major City Goal Other
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Purpose and Need
Addition of workout space external to the station will support the Fire Department's continued effort in reducing workplace injuries. This
project will improve the usable exercise space at Station 4 by providing a detached exterior structure to allow a single engine company
to perform physical fitness training and facilitate a remodel of the living space to accommodate single person sleeping quarters and
restroom facilities. The scope of the project includes the installation of a detached concrete pad and an approximately 24' x 24' steel
frame structure in size with utilities.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 200,000 0 0 200,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 200,000 0 0 200,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 0 200,000 0 0 200,000
CIP# 110
Financial Plan Page 479 Page 891 of 954
Capital Improvement Plan
Project Number Project Name
1000509
Corporation Yard Perimeter Fence
Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Public Facility
Project Type Annual Asset Maintenance
Purpose and Need
The Corporation Yard campus has been subject to multiple break-ins in recent years. Due to the amount of City vehicles, equipment,
industrial chemicals, and materials stored at this location, the potential for theft of expensive items is elevated. This project would
replace the original chain link fence with a heavy-duty ornamental iron fence that is much more difficult to breach.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 550,000 0 0 550,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 550,000 0 0 550,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 0 550,000 0 0 550,000
CIP# 111
Financial Plan Page 480 Page 892 of 954
Capital Improvement Plan
Project Number Project Name
1000571
Sewer-main Replacement: San Jose,
Ramona, Monte Vista, and California
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer mains. Some pipes are over 100 years old, and
are undersized to handle the current flow rates. Maintenance needs increase dramatically as pipelines reach their flow capacities, or
when they approach the end of their useful life. Pipelines in the public wastewater collection system are inspected using specialized
video equipment that will prioritize periodic cleaning frequencies or recommend a complete replacement. Based on the assessment,
this project is needed for the replacement of sewer mains dating back to 1958 that require high cleaning frequencies, have
experienced structural failures due to root intrusions, and have shown high infiltration flows rates during major storm events.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 1,225,000 0 0 0 1,225,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 1,225,000 0 0 0 1,225,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 1,225,000 0 0 0 1,225,000
CIP# 112
Financial Plan Page 481 Page 893 of 954
Capital Improvement Plan
Project Number Project Name
99110
Laguna Lake Dredging and Sediment
Management Project Implementation
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Major City Goal
Climate Action, Open Space, & Sustainable
Transportation
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
The Laguna Lake Nature Reserve is 344-acres of City owned land. Laguna Lake is a naturally occurring water body although the lake
and surrounding watershed have been modified including the rerouting of Prefumo Creek into Laguna Lake. This rerouting of Prefumo
Creek has increased sediment deposits into the lake. This is an ongoing maintenance project.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 900,000 0 900,000 0 1,800,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 900,000 0 900,000 0 1,800,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 900,000 0 900,000 0 1,800,000
CIP# 113
Financial Plan Page 482 Page 894 of 954
Capital Improvement Plan
Project Number Project Name
1000555 Fleet Replacement: Admin
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal OtheOther
Partnership Project No
Project Classification Fleet
Project Type Annual Asset Maintenance, New Asset
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement
Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture
Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have
been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with
the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 250,000 175,000 50,000 50,000 525,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 50,000 50,000 50,000 150,000
402 - Fleet Repl Fund 0 250,000 125,000 0 0 375,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
General Capital Outlay 0 115,516 125,000 0 0 240,516
Local Revenue Measure 0 134,484 50,000 50,000 50,000 284,484
CIP# 114
Financial Plan Page 483 Page 895 of 954
Capital Improvement Plan
Project Number Project Name
1000534
SLO Creek Walk Maintenance - Lighting,
Signage, Irrigation, Plants
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project is intended to remove invasive weeds and plants in the creek channel area and intended to create a more inviting
experience for community members and visitors of the Mission Plaza.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 250,000 0 250,000 0 500,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 250,000 0 250,000 0 500,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 250,000 0 250,000 0 500,000
CIP# 115
Financial Plan Page 484 Page 896 of 954
Capital Improvement Plan
Project Number Project Name
1000033 Playground Equipment Replacement
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
In 2008, the State passed AB 1144 which mandates that all play equipment constructed between 1994 and 1999 be replaced or
upgraded within 15 years of installation. Replacements are to take place in FY 2025-26 at Devaul Ranch Park, Vista Lago Mini Park,
and Laguna Hills Park.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 1,100,000 1,100,000 1,600,000 3,800,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 1,100,000 1,100,000 1,600,000 3,800,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 1,100,000 1,100,000 1,600,000 3,800,000
CIP# 116
Financial Plan Page 485 Page 897 of 954
Capital Improvement Plan
Project Number Project Name
2001051 Source Water Strategic Plan
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Community Improvement
Project Type Annual Asset Maintenance
Purpose and Need
With substantial completion of the WRRF Upgrade (SLO Water Plus) in 2023 and regulatory requirements for potable re-use, this
Source Water Strategic Plan is needed to look at possible roadmaps that can consider the preservation or expansion of the City’s
Water Portfolio. The study will study the restrictions of potable re-use on surface or groundwater programs and develop a decision
matrix for new projects that may expand the City’s source water portfolio.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 90,000 0 0 0 90,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 90,000 0 0 0 90,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 90,000 0 0 0 90,000
CIP# 117
Financial Plan Page 486 Page 898 of 954
Capital Improvement Plan
Project Number Project Name
2001046
Waterline Replacement: Rockview -
Stoneridge to Broad
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage
tanks, two reservoirs, five hydro‐pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of
pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the
end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement. The objective of the project is to
replace existing cast-iron pipe from 1962 with pipe meeting new standards by the American Water Works Association (AWWA) to
provide resiliency in the distribution network against variations in pressure and flows.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 130,000 1,530,000 0 1,660,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 130,000 1,530,000 0 1,660,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 130,000 1,530,000 0 1,660,000
CIP# 118
Financial Plan Page 487 Page 899 of 954
Capital Improvement Plan
Project Number Project Name
1000037 South Street Median Landscaping
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Major City Goal Other
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Purpose and Need
Caltrans and the City collaboratively installed medians in South Street as part of a traffic safety improvement project. This traffic safety
project established all necessary infrastructure to support planted medians in South Street except for irrigation. This project will install
an irrigation system to support future landscape plantings in the medians on South Street.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 550,000 0 0 550,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 0 550,000 0 0 550,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 0 550,000 0 0 550,000
CIP# 119
Financial Plan Page 488 Page 900 of 954
Capital Improvement Plan
Project Number Project Name
1000543
Waterline Replacement: Stenner Canyon at
Reservoir
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The 17.6 miles of pipeline conduit that transport raw water from the Salinas Reservoir to the City of San Luis Obispo is from 1960.
Given the aging infrastructure, this project will include point repairs or replacement of pipe segments that have experienced corrosion
or have failed the structural integrity assessment in the older transmission system along Stenner Creek and northeast of the Water
Treatment Plant.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 80,000 1,100,000 0 1,180,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 80,000 1,100,000 0 1,180,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 80,000 1,100,000 0 1,180,000
CIP# 120
Financial Plan Page 489 Page 901 of 954
Capital Improvement Plan
Project Number Project Name
1000549
Whale Rock Pump Station Electrical Repairs
(A and B)
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The project involves rehabilitation of the Whale Rock Pump Station Facility.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 1,960,620 0 0 0 1,960,620
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
705 - Whale Rock Fund 0 1,960,620 0 0 0 1,960,620
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Whale Rock Fund 0 1,960,620 0 0 0 1,960,620
CIP# 121
Financial Plan Page 490 Page 902 of 954
Capital Improvement Plan
Project Number Project Name
91320 Downtown Renewal
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal
Economic Resiliency, Cultural Vitality, and
Fiscal Sustainability
Partnership Project No
Project Classification Community Improvement
Project Type Asset Replacement
Purpose and Need
This annual asset maintenance project continues to improve the aesthetic of the downtown core with sidewalk frontage improvements.
The addition of pedestrian lighting and conduits to support tree lighting and other Downtown Association activities is incorporated. The
proposed work plan includes design funding in year 2024/25 for the West side of Broad Street from Marsh to Higuera Street including
adjacent intersection improvements.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 200,000 0 2,000,000 0 2,200,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
401 - Capital Outlay Fund 0 200,000 0 2,000,000 0 2,200,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Local Revenue Measure 0 200,000 0 2,000,000 0 2,200,000
CIP# 122
Financial Plan Page 491 Page 903 of 954
Capital Improvement Plan
Project Number Project Name
1000529
Recycled Waterline at Orcutt Road -
Fernwood to Laurel
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type New Asset
Purpose and Need
The City continues to expand the recycled water system that is currently comprised of one distribution zone, one booster-pump station,
and one tank located at the WRRF. This project will install critical infrastructure on Orcutt Road. The objective of the project is to
expand the distribution system in anticipation of the WRRF upgrade and meet the increased demands on recycled water for irrigation.
The new pipe system will meet standards by the American Water Works Association (AWWA) and regulatory requirements.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 25,000 675,000 0 0 700,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 25,000 675,000 0 0 700,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 25,000 675,000 0 0 700,000
CIP# 123
Financial Plan Page 492 Page 904 of 954
Capital Improvement Plan
Project Number Project Name
2001049 WRRF Asset Replacement - Screw Press
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The City’s Water Resource Recovery Facility (WRRF) was originally constructed in 1941. In 1993, a significant upgrade to portions of
the plant were completed to meet changing water quality requirements. In September of 2019, another major upgrade project known
as Water Plus was initiated that will replace older equipment, provide additional treatment capacity, enhance disinfection with
ultraviolet light to produce recycled water and reduce the use of disinfection chemicals. During construction, ongoing maintenance of
existing facilities and equipment at the WRRF are necessary to prolong the useful life of the facilities and ensure staff’s ability to
operate the plant and treat water to State and Federal standards until the upgrade is completed. The proposed asset replacement
projects include servicing: screening washer-auger, influent storm pumps, screw press, primary scum pit, grit pumps, grit blowers,
laboratory fans, security lights, chain link fence, and digester cleaning. Construction of these asset replacements will be coordinated
with facility’s infrastructure renewal strategy and will allow plant staff to prioritize capital improvement projects for the next decade.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 200,000 3,360,000 3,560,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
602 - Sewer Fund 0 0 0 200,000 3,360,000 3,560,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Sewer Fund 0 0 0 200,000 3,360,000 3,560,000
CIP# 124
Financial Plan Page 493 Page 905 of 954
Capital Improvement Plan
Project Number Project Name
2001045
Recycled Waterline at Tank Farm - Long to
Innovation Pipeline
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Purpose and Need
The City continues to expand the recycled water system that is currently comprised of one distribution zone, one booster-pump station,
and one tank located at the WRRF. This project will install critical infrastructure needed to connect a dry-pipeline system constructed
by the subdivision completed in 2018 (Tract 3009). The objective of the project is to expand the distribution system in anticipation of
the WRRF upgrade and meet the increased demands on recycled water for irrigation. The new pipe system will meet standards by the
American Water Works Association (AWWA) and regulatory requirements.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 25,000 625,000 650,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 0 25,000 625,000 650,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 0 25,000 625,000 650,000
CIP# 125
Financial Plan Page 494 Page 906 of 954
Capital Improvement Plan
Project Number Project Name
1000531 Recycled Water Annual UV Bulb Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
This project involves replacement of UV Bulbs for proper functioning of the City's Recycled Water System
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 10,000 10,000 10,000 10,000 40,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 10,000 10,000 10,000 10,000 40,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 10,000 10,000 10,000 10,000 40,000
CIP# 126
Financial Plan Page 495 Page 907 of 954
Capital Improvement Plan
Project Number Project Name
2001041
WTP - Filter Media Replacement and
Underdrain Repairs
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The City’s Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet
changing water quality requirements. In April of 2008, another major upgrade project was completed that replaced older equipment,
added additional storage capacity for treated water, and enhanced treatment processes. The ongoing maintenance of the facilities and
equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and ensure staff’s ability to operate the
plant and treat water to State and Federal standards. The proposed project includes a study phase to analyze the condition of the
water filter media and associated undrain system. The study will develop a framework for the design and construction of a new filter
media of equal or greater performance, which is a required treatment process to meet State and Federal regulations for drinking water
standards.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 60,000 60,000 250,000 370,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 60,000 60,000 250,000 370,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 60,000 60,000 250,000 370,000
CIP# 127
Financial Plan Page 496 Page 908 of 954
Capital Improvement Plan
Project Number Project Name
2001043 Recycled Water Pump Station Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Purpose and Need
The recycled water pump station and storage tank was constructed within the Water Resource Recovery Facility (WRRF) in 2003 and
is need of maintenance work. The required maintenance includes asset replacement of existing pipe supports and pipe fittings that
experienced settlements due to pressure surges and minor corrosion problems. The project will correct the existing deficiencies with
new pipeline spools and re-coat the exterior of the pipe manifold to extend the life of the pump station infrastructure.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 60,000 0 0 0 60,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 60,000 0 0 0 60,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 60,000 0 0 0 60,000
CIP# 128
Financial Plan Page 497 Page 909 of 954
Capital Improvement Plan
Project Number Project Name
2001044 Recycled Water Storage Tank
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Major City Goal Other
Partnership Project No
Project Classification Maintenance
Project Type New Asset
Purpose and Need
The recycled water pump station and storage tank was constructed within the Water Resource Recovery Facility (WRRF) in 2003 and
needs additional storage capacity. The purpose and need for this project is to begin a study phase of the storage tank expansion. The
expansion opportunities may include incorporating stranded assets that could get repurposed into a recycled water tank or look for
new sites that could incorporate a tank and pipe transmission system that can address pressures and system demands. The study
could include preliminary design, land title research to evaluate site constraints, and property acquisitions.
Cost Budget 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Contract Services 0 0 0 0 20,000 20,000
Fund 2023-24 2024-25 2025-26 2026-27 2027-28 Total
601 - Water Fund 0 0 0 0 20,000 20,000
Funding Source 2023-24 2024-25 2025-26 2026-27 2027-28 Total
Water Fund 0 0 0 0 20,000 20,000
CIP# 129
Financial Plan Page 498 Page 910 of 954
REFERENCE MATERIAL
Financial Plan Page 499 Page 911 of 954
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Financial Plan Page 500 Page 912 of 954
PENSION OBLIGATION TRENDS
CalPERS Pension Obligations
Backg round
About CalPERS. Along with 3,000 other cities and local agencies, the City of San Luis Obispo contracts with the
California Public Employees Retirement System (CalPERS) for its “defined benefit” retirement plan, which covers
all regular employees (and temporary employees when required by State law). In 2012, the City proactively
negotiated a lower second tier retirement benefit for employees hired after CalPERS contracts were amended. In
addition, the Public Employee Pension Reform Act (AB 340) became effective in January 2013 and created the
third, and even lower, tier retirement benefit. Under this program, employees who are considered new to the
CalPERS retirement program are enrolled under the new law. Currently, 75% of all participating City employees
are enrolled in the lower retirement tiers.
Table 70: Benefit Tiers
Employee Group Tier 1 Tier 2 Tier 3 - PEPRA
Sworn Public Safety 3% at age 50 Police – 2% at age 50
Fire – 3 % at age 55
2.7 % at age 57
Non-Sworn Employees 2.7% at age 55 2% at age 60 2% at age 62
CalPERS establishes the annual employer contribution rate that is charged against the City’s payroll costs for
eligible employees. The annual contribution rate is comprised of the following components:
1.Normal Cost, which is the amount needed to fund benefits earned by active employees in the upcoming
year.
2.Unfunded liability required contribution, which is the amount charged to pay down the pool’s unfunded
liability.
Each October, CalPERS provides an actuarial valuation report for each benefit plan that updates certain values to
reflect changes in plan activity since the previous valuation. These changes include but are not limited to:
✓The difference between the expected rate of return and the actual rate realized.
✓Changes in the number of plan members who retire each year.
✓Changes in the number of new plan members.
✓Changes in the annual payroll provided to existing members of the plan.
The actuarial valuations also provide new information on the variables associated with maintaining the plan, such
as the amount of the unfunded liability and the annual Employer Contribution rate, which represents the amount
that the City is required to pay for every dollar of eligible payroll, beginning the following fiscal year. The
information used for this report is taken from the latest valuation report that was issued for the year ending June
30, 2021.
CalPERS is a separate and distinct legal entity from the City and serves as an independent fiduciary in managing
the City’s retirement plan assets.
Financial Plan Page 501 Page 913 of 954
PENSION OBLIGATION TRENDS
CALPERS EMPLOYER CONTRIBUTIONS
Cal PERS Employer Cost Trends
The following summarizes CalPERS employer contributions since 2011-12 .
*Reflects additional one-time payments towards unfunded liability.
In July 2021, CalPERs reported a 21.3% net return on investments for the 12 -month period that ended June 30,
2021. Under the Funding Risk Mitigation Policy, approved by the CalPERS Board of Administration in 2015, the
double-digit return triggered a reduction in the discount rate used to calculate employer and Public Employees’
Pension Reform Act (PEPRA) members contributions. The discount rate, or assumed rate of return, has now
dropped from 7% to 6.8% on ongoing basis. The lowering of the discount rate will increase both employee and
employer normal cost and influence the unfunded liability. In the short term, the double-digit gains mitigated
some of the impact of the lower discount rate on the unfunded liability; however, CalPERS’ recently announced
7.5% investment losses in 2022 will severely impact the CalPERS funded status and will ultimately increase the
City’s future unfunded liability payments.
Unfunded Liabilities
In 2018, City Council adopted a Fiscal Health Response Plan (FHRP) to help address the City’s unfunded liabilities.
One component of the FHRP included making additional discretionary payments to CalPERS. To date, the City has
made a total of $16.6 million in additional discretionary payments (ADPs) in order to paydown its pension liability.
In March 2023, staff engaged with Foster & Foster, an independent national actuarial consulting firm to perform
a review of the City’s progress in paying down unfunded liabilities. Based on the Foster & Foster actuarial report,
the City’s commitment to paying down its pension debt by making additional ADPs has helped to make progress
on improving the plan’s overall funded status. Unfortunately, the 2022 investment losses experienced by CalPERS
have significantly impacted the City’s funded status (as well as that of other PERS agencies throughout California).
Feedback provided by the City’s independent Actuary is that the City is taking appropriate action to make progress
in paying down the unfunded pension liabilities, but that market conditions impacting CalPERS investments hinder
progress. The impact of the -7.5% investment return in FY 2021-22 provides a good reminder that the City’s ability
to address unfunded liabilities is heavily impacted by factors outside of the City’s control. The primary
recommended strategy coming out of the Foster & Foster report is to continue to make required and Additional
Discretionary Payments and the City’s five year forecast assumes $2 million annually in addition to maintaining a
Table 71: Employer Retirement Contributions
Fiscal Year Safety Non-Safety Total
2011-12 $4,202,200 $4,226,700 $8,428,900
2012-13 $4,418,518 $4,347,255 $8,765,773
2013-14 $4,152,103 $4,528,325 $8,680,428
2014-15 $4,607,331 $5,027,328 $9,634,659
2015-16 $5,885,722 $5,824,217 $11,709,939
2016-17 $6,299,915 $6,776,945 $13,076,860
2017-18 $5,910,345 $6,693,987 $12,604,332
2018-19* $8,348,780 $9,361,882 $17,710,662
2019-20 $7,167,638 $7,709,918 $14,877,556
2020-21 $7,631,620 $8,069,806 $15,701,426
2021-22* $12,756,585 $15,923,929 $28,680,514
Financial Plan Page 502 Page 914 of 954
PENSION OBLIGATION TRENDS
$2 million balance in a 115 Trust. Lastly, City adopted policies prioritize any year of year unappropriated balances
toward Additional Discretionary Payments.
Current Cal PERS Employer Contribution Rates
CalPERS has published the employer rates for 2023-24 as well as projected rates for the following year, as shown
below. While CalPERS has been able to create separate rates for each of the Safety Plan Benefit Tiers, they have
chosen to create a blended rate for all three Miscellaneous retirement benefit tiers. The table below is based on
June 30, 2021 valuation date, which is the latest available valuation.
Table 72: PERS Employer Rates
Retirement Tier 2023-24 2024-25 Projection
Miscellaneous 10.53% 10.40%
Safety Tier I 29.09% 29.10%
Safety Police Tier II 21.78% 21.80%
Safety Police Tier III 14.50% 14.50%
Safety Fire Tier II 24.79% 24.80%
Safety Fire Tier III 14.50% 14.50%
In addition to the rate for the normal cost, CalPERS requires a fixed annual amount to pay down the unfunded
liability. The June 30, 20 21 valuation provides the amount for 2023-24 and a projection for 2024-25 as shown
below.
Table 73: Unfunded Liability Payments
Employer Payment 2023-24 2024-25 Projection
Miscellaneous $ 6,938,929 $ 6,990,000
Safety $ 6,359,352 $ 6,415,000
Employee Contribution Rates
Employees are making contributions to CalPERS along with employer contribution rates. Employee contribution
rates vary, depending on retirement tier. Beginning in January 2014, the Police Officers Association agreed to
contribute an additional 3% of pay to offset the employer’s share of the retirement contribution. In 2018, the
Fire, Unrepresented Management, and Confidential employee groups agreed to contribute an additional 3.0% of
pay to offset the employer’s share of the retirement contribution.
Employee Plan Employee Contribution Rate
Miscellaneous 7.5% to 11%
Public Safety Sworn 9% to 15%
Table 74:
Financial Plan Page 503 Page 915 of 954
PENSION OBLIGATION TRENDS
CalPERS Plan Funding Levels
The following shows CalPERS funding levels for the City’s Miscellaneous Plan and Safety Pool for the actuarial
valuations from June 30, 2011 through June 30, 2021. This is the most recent actual information that is available
from CalPERS.
Actuarial
Valuation
Date Ending
June 30
Asset Value 1 Entry Age Actuarial
Accrued Liability
Assets Over (Under)
Actuarial Accrued
Liability
Funded
Ratio
Tier I Safety Employee Plan
2011 $ 94,068 $ 143,482 $ (49,414) 65.6%
2012 $ 92,264 $ 149,615 $ (57,351) 61.7%
2013 $ 100,910 $ 154,746 $ (53,836) 65.2%
2014 $ 113,884 $ 165,802 $ (51,918) 68.7%
2015 $ 111,864 $ 170,942 $ (59,078) 65.4%
2016 $ 109,934 $ 178,704 $ (68,770) 61.5%
2017 $ 118,917 $ 188,177 $ (69,260) 63.2%
2018 $ 123,952 $ 200,729 $ (76,777) 61.8%
2019 $ 127,661 $ 205,097 $ (77,436) 62.2%
2020 $ 128,700 $ 210,170 $ (81,470) 61.2%
2021 $ 153,350 $ 220,803 $ (67,453) 69.5%
Miscellaneous Employee Plan
2011 $ 103,392 $ 150,651 $ (47,259) 68.6%
2012 $ 108,926 $ 157,223 $ (48,297) 69.3%
2013 $ 101,989 $ 163,765 $ (61,776) 62.3%
2014 $ 117,762 $ 178,138 $ (60,376) 66.1%
2015 $ 118,043 $ 185,020 $ (66,977) 63.8%
2016 $ 116,863 $ 196,413 $ (79,550) 59.5%
2017 $ 128,186 $ 208,025 $ (79,839) 61.6%
2018 $ 136,587 $ 225,101 $ (88,514) 60.7%
2019 $ 144,624 $ 234,600 $ (89,976) 61.6%
2020 $ 147,848 $ 240,866 $ (93,017) 61.4%
2021 $ 177,819 $ 255,715 $ (77,896) 69.5%
All numbers presented in Thousands of Dollars
Beginning in 2006, the Safety Plan is a member of a CalPERS safety pool.
1 Before 2013, CalPERS used the Actuarial Value of Assets. Starting in 2013 Market Value of Assets is used.
Table 75:
Financial Plan Page 504 Page 916 of 954
Appropriation Limit
Appropriation Limit
The City’s appropriation limit is based on the Gann Spending Limit Initiative, a State constitutional
amendment adopted by the voters on June 6, 1979 and amended in 1990 with Proposition 111. It is
anchored in the State Constitution under Article XIIIB.
The limit restricts appropriations from tax revenues by State and local governments. Under its provisions,
no local agency can appropriate proceeds of taxes in excess of its “appropriation limit”. Excess funds may
be carried over into the next year. However, any excess funds remaining after the second year must be
returned to taxpayers by reducing tax rates or fees; a majority of the voters may approve an override to
increase the limit.
The City’s appropriation limit is calculated by considering population growth and cost of living as allowed
under Proposition 111.
Table 76: Appropriation Limit 2023-24 - Calculation
Factors Ratio Formula
A)Prior Year Appropriation Limit $85,706,220
B) Adjustment Factors
1.Population Change1 1.15% 1.0115
2.Cost of Living Increase2 4.79% 1.0479
3.Combined Factor 1.06% 1.0599 B1*B2
Adjusted Limit $90,839,932 A*B3
The following summarizes changes in the City’s appropriation limit and appropriations subject to the limit
for the past ten years as well as the appropriation limit for 2023-24. A positive variance indicates that the
City’s appropriations are lower than the allowable limit.
Fiscal
Year
Limit Base Cost of
Living
Factor
Population
Factor
Appropriation
Limit
Appropriations
Subject to
Limit
Variance
2014-15 54,337,500 8.69% 0.09% 59,112,600 36,642,900 22,469,700
2015-16 59,112,600 4.97% 0.78% 62,534,500 46,067,700 16,466,800
2016-17 62,534,500 5.63% 0.60% 66,451,500 49,397,200 17,054,300
2017-18 66,451,500 1.20% 0.92% 67,867,633 50,036,391 17,831,242
2018-19 67,867,633 1.88% 0.35% 69,383,546 51,142,315 18,241,231
2019-20 69,383,546 6.37% 0.24% 73,981,290 50,127,692 23,853,598
2020-21 73,981,290 1.92% -0.04%75,373,410 48,342,410 27,031,416
2021-22 75,373,410 5.11% 0.31% 79,470,558 52,362,031 27,108,458
2022-23 79,470,558 7.55% 0.28% 85,706,220 65,610,162 20,093,058
2023-24 85,706,220 4.79% 1.15% $90,839,932 71,693,192 19,146,740
1 State of California Department of Finance https://dof.ca.gov/wp-
content/uploads/sites/352/2023/05/PriceandPopulation2023.pdf
2 San Luis Obispo County Assessor 2022/23 Secured Tax Rolls, provided by HDL, Coren & Cone
Table 77:
Financial Plan Page 505 Page 917 of 954
Fiscal Policies
Section 1. GENERAL REVENUE MANAGEMENT
A.Diversified and Stable Base. The City will seek to maintain a diversified and stable revenue base to
protect it from short-term fluctuations in any one revenue source.
B.Long-Range Focus. To emphasize and facilitate long-range financial planning, the City will maintain
current projections of revenues for the succeeding five years.
C.Current Revenues for Current Uses. The City will make all current expenditures with current
revenues, avoiding procedures that balance current budgets by postponing needed expenditures,
accruing future revenues, or rolling over short-term debt.
D.Interfund Transfers and Loans. In order to achieve important public policy goals, the City has
established various special revenue, capital project, debt service and enterprise funds to account for
revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a
separate financing entity from other funds, with its own revenue sources, expenditures and fund
equity.
Any transfers between funds for operating purposes are clearly set forth in the Financial Plan, and
can only be made by the Finance Director in accordance with the adopted budget. These operating
transfers, under which financial resources are transferred from one fund to another, are distinctly
different from interfund borrowings, which are usually made for temporary cash flow reasons, and
are not intended to result in a transfer of financial resources by the end of the fiscal year.
In summary, interfund transfers result in a change in fund equity; interfund borrowings do not, as
the intent is to repay the loan in the near term.
From time to time, interfund borrowings may be appropriate; however, these are subject to the
following criteria in ensuring that the fiduciary purpose of the fund is met:
1.The Finance Director is authorized to approve temporary interfund borrowings for cash flow
purposes whenever the cash shortfall is expected to be resolved within 45 days. The most
common use of interfund borrowing under this circumstance is for grant programs like the
Community Development Block Grant, where costs are incurred before drawdowns are initiated
and received. However, receipt of funds is typically received shortly after the request for funds
has been made.
2.Any other interfund borrowings for cash flow or other purposes require case-by-case approval
by the Council.
3.Any transfers between funds where reimbursement is not expected within one fiscal year shall
not be recorded as interfund borrowings; they shall be recorded as interfund operating transfers
that affect equity by moving financial resources from one fund to another.
Financial Plan Page 506 Page 918 of 954
Section 2. USER FEE COST RECOVERY GOALS
A.Ongoing Review
Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes
in the cost-of-living as well as changes in methods or levels of service delivery.
In implementing this goal, a comprehensive analysis of City costs and fees should be made at least
every five years. In the interim, fees will be adjusted by annual changes in the Consumer Price Index.
Fees may be adjusted during this interim period based on supplemental analysis whenever there
have been significant changes in the method, level or cost of service delivery.
B.User Fee Cost Recovery Levels
In setting user fees and cost recovery levels, the following factors will be considered:
1.Community-Wide Versus Special Benefit. The level of user fee cost recovery should consider the
community-wide versus special service nature of the program or activity. The use of general-
purpose revenues is appropriate for community-wide services, while user fees are appropriate
for services that are of special benefit to easily identified individuals or groups.
2.Service Recipient Versus Service Driver. After considering community-wide versus special
benefit of the service, the concept of service recipient versus service driver should also be
considered. For example, it could be argued that the applicant is not the beneficiary of the City's
development review efforts: the community is the primary beneficiary. However, the applicant
is the driver of development review costs, and as such, cost recovery from the applicant is
appropriate.
3.Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of
services can significantly affect the demand and subsequent level of services provided. At full
cost recovery, this has the specific advantage of ensuring that the City is providing services for
which there is genuinely a market that is not overly-stimulated by artificially low prices.
Conversely, high levels of cost recovery will negatively impact the delivery of services to lower
income groups. This negative feature is especially pronounced, and works against public policy,
if the services are specifically targeted to low income groups.
4.Feasibility of Collection and Recovery. Although it may be determined that a high level of cost
recovery may be appropriate for specific services, it may be impractical or too costly to establish
a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting
charges should also be considered in developing user fees, especially if significant program costs
are intended to be financed from that source.
C.Factors Favoring Low Cost Recovery Levels
Very low-cost recovery levels are appropriate under the following circumstances:
Financial Plan Page 507 Page 919 of 954
1. There is no intended relationship between the amount paid and the benefit received. Almost all
"social service" programs fall into this category as it is expected that one group will subsidize
another.
2. Collecting fees is not cost-effective or will significantly impact the efficient delivery of the service.
3. There is no intent to limit the use of (or entitlement to) the service. Again, most "social service"
programs fit into this category as well as many public safety (police and fire) emergency response
services. Historically, access to neighborhood and community parks would also fit into this
category.
4. The service is non-recurring, generally delivered on a "peak demand" or emergency basis, cannot
reasonably be planned for on an individual basis, and is not readily available from a private sector
source. Many public safety services also fall into this category.
5. Collecting fees would discourage compliance with regulatory requirements a nd adherence is
primarily self-identified, and as such, failure to comply would not be readily detected by the City.
Many small-scale licenses and permits might fall into this category.
D. Factors Favoring High Cost Recovery Levels
The use of service charges as a major source of funding service levels is especially appropriate
under the following circumstances:
1. The service is similar to services provided through the private sector.
2. Other private or public sector alternatives could or do exist for the delivery of the service.
3. For equity or demand management purposes, it is intended that there be a direct relationship
between the amount paid and the level and cost of the service received.
4. The use of the service is specifically discouraged. Police responses to disturbances or false alarms
might fall into this category.
5. The service is regulatory in nature and voluntary compliance is not expected to be the primary
method of detecting failure to meet regulatory requirements. Building permit, plan checks, and
subdivision review fees for large projects would fall into this category.
E. General Concepts Regarding the Use of Service Charges
The following general concepts will be used in developing and implementing service charges:
1. Revenues should not exceed the reasonable cost of providing the service.
2. Cost recovery goals should be based on the total cost of delivering the service, including direct
costs, departmental administration costs and organization -wide support costs such as
accounting, personnel, information technology, legal services, fleet maintenance and insurance.
Financial Plan Page 508 Page 920 of 954
3. The method of assessing and collecting fees should be as simple as possible in order to reduce
the administrative cost of collection.
4. Rate structures should be sensitive to the "market" for similar services as well as to smaller,
infrequent users of the service.
5. A unified approach should be used in determining cost recovery levels for various programs
based on the factors discussed above.
F. Low Cost-Recovery Services
Based on the criteria discussed above, the following types of services should have very low-cost
recovery goals. In selected circumstances, there may be specific activities within the broad scope of
services provided that should have user charges associated with them. However, the primary source
of funding for the operation as a whole should be general-purpose revenues, not user fees.
1. Delivering public safety emergency response services such as police patrol services and fire
suppression.
2. Maintaining and developing public facilities that are provided on a uniform, community -wide
basis such as streets, parks and general-purpose buildings.
3. Providing social service programs and economic development activities.
G. Recreation Programs
The following cost recovery policies apply to the City's recreation programs:
1. Cost recovery for activities directed to adults should be relatively high.
2. Cost recovery for activities directed to youth and seniors should be relatively low. In those
circumstances where services are similar to those provided in the private sector, cost recovery
levels should be higher.
Although ability to pay may not be a concern for all youth and senior participants, these are
desired program activities, and the cost of determining need may be greater than the cost of
providing a uniform service fee structure to all participants. Further, there is a community-wide
benefit in encouraging high-levels of participation in youth and senior recreation activities
regardless of financial status.
3. Cost recovery goals for recreation activities are set as follows:
High-Range Cost Recovery Activities - (60% to 100%)
a. Adult athletics
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b. Banner permit applications
c. Child care services
d. Facility rentals (indoor and outdoor; excludes use of facilities for internal City uses)
Mid-Range Cost Recovery Activities - (30% to 60%)
e. Triathlon
f. Golf
g. Summer and Spring Break Camps
h. Classes
i. Major commercial film permit applications
Low-Range Cost Recovery Activities- (0 to 30%)
j. Aquatics
k. Community gardens
l. Junior Ranger camp
m. Minor commercial film permit applications
n. Skate park
o. Parks and Recreation sponsored events (except for Triathlon)
p. Youth sports
q. Teen services
r. Senior/boomer services
4. For cost recovery activities of less than 100%, there should be a differential in rates between
residents and non-residents. However, the Director of Parks and Recreation is authorized to
reduce or eliminate non-resident fee differentials when it can be demonstrated that:
a. The fee is reducing attendance.
b. And there are no appreciable expenditure savings from the reduced attendance.
5. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special -use areas, and
recreation equipment for activities not sponsored or co-sponsored by the City. Such charges will
generally conform to the fee guidelines described above. However, the Director of Parks and
Recreation is authorized to charge fees that are closer to full cost recovery for facilities that are
heavily used at peak times and include a majority of non -resident users.
6. A vendor charge of at least 10 percent of gross income w ill be assessed from individuals or
organizations using City facilities for moneymaking activities.
7. Director of Parks and Recreation is authorized to offer reduced fees such as introductory rates,
family discounts and coupon discounts on a pilot basis (not to exceed 18 months) to promote
new recreation programs or resurrect existing ones.
8. The Parks and Recreation Department will consider waiving fees only when the City Manager
determines in writing that an undue hardship exists.
Financial Plan Page 510 Page 922 of 954
H. Development Review Programs
The following cost recovery policies apply to the development review programs:
1. Services provided under this category include:
a. Planning (planned development permits, tentative tract and parcel maps, re -zonings, general
plan amendments, variances, use permits).
b. Building and safety (building permits, structural plan checks, inspections).
c. Engineering (public improvement plan checks, inspections, subdivision requirements,
encroachments).
d. Fire plan check.
2. Cost recovery for these services should generally be very high. In most instances, the City's cost
recovery goal should be 100%.
3. However, in charging high cost recovery levels, the City needs to clearly establish and articulate
standards for its performance in reviewing developer applications to e nsure that there is “value
for cost.”
4. Building Permit Plan Check Services – The City of San Luis Obispo offers building permit plan
check services through consultants at a set price, not to exceed 65% of the City’s fee for the
service. Building Permit Plan Check Services are offered by the City on a 100% cost-recovery basis,
and the service is provided after the fee is paid in full. As a result, the Finance Director is
authorized to make appropriations from the related revenue account to cover the cost of the
services provided.
I. Comparability with Other Communities
In setting user fees, the City will consider fees charged by other agencies in accordance with the
following criteria:
1. Surveying the comparability of the City's fees to other communities provides useful background
information in setting fees for several reasons:
a. They reflect the "market" for these fees and can assist in assessing the reasonableness of San
Luis Obispo’s fees.
b. If prudently analyzed, they can serve as a benchmark for how cost-effectively San Luis Obispo
provides its services.
2. However, fee surveys should never be the sole or primary criteria in setting City fees as there are
many factors that affect how and why other communities have set their fees at their levels. For
example:
Financial Plan Page 511 Page 923 of 954
a. What level of cost recovery is their fee intended to achieve compared with our cost recovery
objectives?
b. What costs have been considered in computing the fees?
c. When was the last time that their fees were comprehensively evaluated?
d. What level of service do they provide compared with our service or performance standards?
e. Is their rate structure significantly different than ours and what is it intended to achieve?
3. These can be very difficult questions to address in fairly evaluating fees among different
communities. As such, the comparability of our fees to other communities should be one factor
among many that is considered in setting City fees.
Financial Plan Page 512 Page 924 of 954
Section 3. ENTERPRISE FUND FEES AND RATES
A. Water, Sewer, and Parking. The City will set fees and rates at levels which fully cover the total direct
and indirect costs—including operations, capital outlay, and debt service—of the following
enterprise programs: water, sewer, and parking. For Water and Sewer, the rate setting process will
be in accordance with Proposition 218 and its notification requirements.
B. Transit. Based on targets set under the Transportation Development Act, the City will strive to cover
at least twenty percent of transit operating costs with fare revenues.
C. Ongoing Rate Review. The City will review and adjust enterprise fees and rate structures as required
to ensure that they remain appropriate and equitable.
D. Cost of Service Fees. The City will treat the water and sewer funds in the same manner as if they
were privately owned and operated. This means assessing reasonable cost of service fees in fully
recovering service costs.
The purpose of the cost of service fee is reasonable cost recovery for the use of the City’s services
such as street rights-of-way and public safety. The appropriateness of charging the water and sewer
fund a reasonable cost of service fee for the use of the City streets is further supported by the results
of studies from Arizona, California, Ohio, and Vermont which concluded that the leading cause of
street resurfacing and reconstruction is street cuts and trenching for Utilities.
Financial Plan Page 513 Page 925 of 954
Section 4. REVENUE DISTRIBUTION
The Council recognizes that generally accepted accounting principles for state and local governments
discourage the “earmarking” of General Fund revenues, and accordingly, the practice of designating
General Fund revenues for specific programs should be minimized in the City's manage ment of its fiscal
affairs. Approval of the following revenue distribution policies does not prevent the Council from
directing General Fund resources to other functions and programs as necessary.
A. Property Taxes. With the passage of Proposition 13 on June 6, 1978, California cities no longer can
set their own property tax rates. In addition to limiting annual increases in market value, placing a
ceiling on voter-approved indebtedness, and redefining assessed valuations, Proposition 13
established a maximum county-wide levy for general revenue purposes of 1% of market value. Under
subsequent state legislation, which adopted formulas for the distribution of this countywide levy,
the City now receives a percentage of total property tax revenues collected c ountywide as
determined by the State and administered by the County Auditor-Controller. The City receives 14.9%
of each dollar collected in property tax after allocations to school districts.
Accordingly, while property revenues are often thought of as local revenue sources, in essence they
are State revenue sources, since the State controls their use and allocation.
With the adoption of a Charter revision in November 1996, which removed provisions that were in
conflict with Proposition 13 relating to the setting of property tax revenues between various funds,
all property tax revenues are now accounted for in the General Fund.
B. Gasoline Tax Subventions. All gasoline tax revenues (which are restricted by the State for street -
related purposes) will be used for maintenance activities. Since the City's total expenditures for gas
tax eligible programs and projects are much greater than this revenue source, op erating transfers
will be made from the gas tax fund to the General Fund for this purpose. This approach significantly
reduces the accounting efforts required to meet State reporting requirements.
C. Transportation Development Act (TDA) Revenues. All TDA revenues will be allocated to alternative
transportation programs, including regional and municipal transit systems, bikeway improvements,
and other programs or projects designed to reduce automobile usage. Because TDA revenues will
not be allocated for street purposes, it is expected that alternative transportation programs (in
conjunction with other state or federal grants for this purpose) will be self -supporting from TDA
revenues.
D. Parking Fines. All parking fine revenues will be allocated to the parking fund, except for those
collected by Police staff (who are funded by the General Fund) in implementing neighborhood
wellness programs.
Financial Plan Page 514 Page 926 of 954
Section 5. INVESTMENTS
Link to the City’s Investment Policy & Management Plan:
POLICY STATEMENT
The City of San Luis Obispo shall invest public funds in such a manner
as to comply with state and local laws; ensure prudent money
management; provide for daily cash flow requirements; and meet the
objectives of the Investment Policy & Management Plan in priority
order of Safety, Liquidity, and Return on Investment.
The purpose of the Investment Policy and Management Plan is to
establish policies, practices, and procedures to be used in
administering the City's investment portfolio in accordance with the
City's Statement of Investment policy.
PRIMARY INVESTMENT OBJECTIVE
The City's primary investment objective is to achieve a reasonable rate
of return on public funds while minimizing the potential for capital
losses arising from market changes or issuer default. Although the generation of revenues through
interest earnings on investments is an appropriate City goal, the primary consideration in the investment
of City funds is capital preservation in the overall portfolio. As such, the City's yield objective is to achieve
a reasonable rate of return on City investments rather than the maximum generation of income, which
could expose the City to unacceptable levels of risk.
In determining individual investment placements, the following factors shall be considered in priority
order: 1) Safety 2) Liquidity 3) Yield – (Return on Investment).
Financial Plan Page 515 Page 927 of 954
Section 6. APPROPRIATIONS LIMITATION
A. The Council will annually adopt a resolution establishing the City's appropriations limit calculated in
accordance with Article XIII-B of the Constitution of the State of California, Section 7900 of the State
of California Government Code, and any other voter approved amendments or state legislation that
affect the City's appropriations limit.
B. The supporting documentation used in calculating the City's appropriations limit and projected
appropriations subject to the limit will be available for public and Council review at least 10 days
before Council consideration of a resolution to adopt an appropriations limit. The Council will
generally consider this resolution in connection with final approval of the budget.
C. The City will strive to develop revenue sources, both new and existing, which are considered non -tax
proceeds in calculating its appropriations subject to limitation.
D. The City will annually review user fees and charges and report to the Council the amount of program
subsidy, if any, that is being provided by the General or Enterprise Funds.
E. The City will actively support legislation or initiatives sponsored or approved by League of California
Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City
to retain projected tax revenues resulting from growth in the local economy for use as determined
by the Council.
F. The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are
in excess of allowable limits.
Financial Plan Page 516 Page 928 of 954
Section 7. FUND BALANCE AND RESERVES
Link to the City’s Fund Balance & Reserve Policy
This policy establishes guidelines and procedures for allocating and
reporting the City’s fund balances in the financial statements in
accordance with Governmental Accounting Standards Board (GASB)
Statement No. 54 and as committed by the City Council effective
beginning fiscal year ending June 30, 2021.
Additionally, the policy establishes the City’s reserve levels to
address protection from risk and unexpected situation that require
financial resources. The City of San Luis Obispo faces risks such as
revenue shortfalls during recessions and losses from extreme
events, like earthquakes, wildland fires, flooding, and other natural
disasters. Prudent reserve levels help make sure that the City of San
Luis Obispo can respond quickly and decisively to those events.
Reserves also support vital public services during revenue declines.
As such, the City’s reserve policy describes how much the City will retain in the reserves and stipulates
activation and acceptable uses of the reserves.
Since reserve levels need to be considered when establishing fund balances, both are addressed within
this policy.
Financial Plan Page 517 Page 929 of 954
Section 8. CalPERS & UNFUNDED LIABILITIES
With the 2018-19 Financial Plan Supplement, the City adopted its Fiscal Health Response Plan (FHRP); a
three-year plan to address the City’s escalating unfunded pension liability stemming from the CalPERS’
changes under the Public Employees’ Pension Reform Act (PEBRA). PEBRA prescribe that a member
agency’s pension liability had to be paid down over a 30-year period which triggered annually escalating
contributions through 2045.
The FHRP therefore targeted a realignment of revenues and expenditures to al low for additional
payments to CalPERS, negotiated additional contributions toward pension payments for employee
groups, and prioritized the use of unassigned fund balance once the City’s Financial Statements had been
audited and accepted by the City Council. The goal of this realignment was the payment of the UFL over
a reduced timeline therefore securing pensions for City employees and saving the City considerable
interest payments.
Given the long-term ramifications of the deliverables put in motion through the FHRP, this section
addresses the City’s long-term commitment to payment of the UFL, annual additional discretionary
payments (ADPs), and the needed prioritization to hold the shortened timeline.
1. The City sets the following prioritization of unassigned General Fund balance:
a. Additional discretionary payments to CalPERS
b. Infrastructure investments
c. Emerging Health and Safety needs of the community
2. The City commits to ADPs to CalPERS and adding an annual inflator equal to increases in payroll
whenever CalPERS reaches its discount rate or larger rates of return based on what is presented
in the latest five-year forecast.
3. Whenever CalPERS does not reach its adopted discount rate, the City commits to first use any
unassigned fund balance to counteract the investment loss CalPERS experienced. It will add the
loss to the committed ADP as outlined above to safeguard the investment already made toward
the early repayment of the UFL.
Financial Plan Page 518 Page 930 of 954
Section 9. CAPITAL IMPROVEMENT PROGRAM MANAGEMENT
A. CIP Projects: $25,000 or More. Construction projects which cost $25,000 or more will be
included in the CIP and are accounted for the in the Capital Outlay Fund. Minor capital outlays
of less than $25,000 will be included with the operating program budgets.
B. CIP Purpose. The purpose of the CIP is to systematically plan, schedule, and finance capital
projects to ensure cost-effectiveness as well as conformance with established policies. The CIP
is a five-year plan organized into the same functional groupings used for the operating pr ograms.
The CIP will reflect a balance between capital replacement projects that repair, replace, or
enhance existing facilities, equipment or infrastructure; and capital facility projects that
significantly expand or add to the City’s existing fixed assets.
C. CIP Project Type. Projects are categorized by type, including:
1. Asset Maintenance – Reoccurring and annual needs that maintain existing assets.
2. Asset Replacement – Periodically reoccurring and/or annual needs that replace existing
assets with similar assets.
3. New Asset – Periodic needs to expand the number of assets that serve the community.
Asset maintenance projects and costs should be considered before recommending funding for
projects to replace existing assets or construct new assets. As set Maintenance projects are not
ranked by the CIP Review Committee.
D. CIP Project, Project Manager. Every CIP project will have a “project manager” who will be
responsible for managing the project scope, budget, and timeline. Project managers will be
responsible for ensuring that required phases are completed on schedule, authorizing all project
expenditures, ensuring that all regulations and laws are observed, regularly communicating with
project proponents and other stakeholders, and reporting on project status. Project
management will primarily be performed by staff in the Public Works Department, but staff from
other departments may also manage projects.
E. CIP Review Committee. The CIP Review Committee provides governance of the CIP by
evaluating and prioritizing capital projects based upon an established set of criteria to ensure
alignment with Major City Goals, the General Plan, strategic growth objectives and needs for
services provided within the City. The Assistant City Manager serves as Chair of the Committee
and the Director of Public Works is Vice Chair; other members include: Deputy City Manager,
Director of Community Development, Director of Finance, Director of Parks and Recreation,
Director of Utilities, and a public safety department head (rotating between the Fire Chief and
Police Chief). The CIP Administrative Manager, City Engineer, Principal Budget Analyst, DEI
Manager, and Sustainability Manager provide staff support to the Committee. The Committee is
responsible for:
1. Assessing the City’s fiscal and staff capacity to deliver projects so that the recommended CIP
represents what can realistically be accomplished; and
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2. Recommending to the City Manager the projects and associated budgets that should be
included in the biennial financial plan; and
3. Considering requests for new projects that may be requested outside of financial plan
development to address emergent needs; and
4. Evaluating the re-prioritization of projects as needs and conditions change in order to ensure
consistency with project evaluation criteria, ability to deliver projects, and City priorities.
F. Project Request Forms. The CIP Review Committee requires that departments submitting a
request for a project to be funded in the Five-Year CIP cycle submit a Project Request Form (PRF)
to formally document the project request. The PRF is intended to ensure that the Committee
has necessary information to evaluate and prioritize projects for funding. In a ddition to
completion of the PRF, the Committee may also request a presentation from the requesting
department to gather additional information. The content of the PRF shall include, but not be
limited to the following:
1. Proposed project title
2. Proponent (Client) department
3. Proposed managing department or division
4. Project function
5. Project type
6. City priority alignment
7. Project scope
8. Proposed project schedule/delivery
9. Estimated project budget and funding source(s) (if any)
G. Creation of Projects. New projects shall only be considered during development of the biennial
financial plan. Requests for projects outside of the financial plan development process will be
considered only if they are intended to address an emergency need. Staff may create new
projects as directed by the City Council at any point.
H. CIP Phases. The CIP will emphasize project planning, with projects progressing through at least
two and up to ten of the following phases:
1. Designate. Appropriates funds based on projects designated for funding by the Council
through adoption of the Financial Plan.
2. Study. Concept, site selection, feasibility analysis, schematic design, environmental
determination, property appraisals, scheduling, grant application, grant approval,
specification preparation for equipment purchases.
3. Environmental Review. EIR preparation, other environmental studies.
4. Real Property Acquisitions. Property acquisition for projects, if necessary.
5. Site Preparation. Demolition, hazardous materials abatements, other pre‐construction work.
6. Design. Final design, plan and specification preparation and construction cost estimation.
7. Construction. Construction contracts.
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8. Construction Management. Contract project management and inspection, soils and material
tests, other support services during construction.
9. Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other
equipment items acquired and installed independently from construction contracts.
10. Debt Service. Installment payments of principal and interest for completed projects funded
through debt financings. Expenditures for this project phase are included in the Debt Service
section of the Financial Plan. Generally, it will become more difficult for a project to move
from one phase to the next. As such, more projects will be studied than will be designed, and
more projects will be designed than will be constructed or purchased during the term of the
CIP.
I. CIP Appropriation. The City’s annual CIP appropriation for study, design, acquisition and/or
construction is based on the projects designated by the Council through adoption of the Financial
Plan. Adoption of the Financial Plan CIP appropriation does not automatically authorize funding
for specific project phases. This authorization generally occurs only after the preceding project
phase has been completed and approved by the Council and costs for the succeeding phases have
been fully developed.
Accordingly, project appropriations are generally made when contracts are awarded. If project
costs at the time of bid award are less than the budgeted amount, the balance will be
unappropriated and returned to fund balance or allocated to another project. If project costs at
the time of bid award are greater than budget amounts, five basic options are available:
1. Eliminate the project.
2. Defer the project for consideration to the next Financial Plan period.
3. Rescope or change the phasing of the project to meet the existing budget.
4. Transfer funding from another specified, lower priority project.
5. Appropriate additional resources as necessary from fund balance.
J. Cost of CIP Program Management and Project Delivery. The Capital budget shall reflect the
projected cost of staff time within the Public Works Department spent on management of the
CIP and delivery of projects budgeted in the Capital budget.
K. CIP Budget Carryover. Appropriations for CIP projects lapse three years after budget adoption.
Projects which lapse from lack of project account appropriations may be resubmitted for
inclusion in a subsequent CIP. Project accounts, which have been appropriated, will not lapse
until completion of the project phase.
L. CIP Reporting. Staff shall publish reports on the progress of delivering the Capital Improvement
Plan at least quarterly, as part of Quarterly Budget Reports provided to the City Council. These
reports shall include a summary of project budgets, a status update on projects in progress, and
a listing of projects completed within the quarter.
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M. Public Art. CIP projects will be evaluated during the budget process and prior to each phase for
conformance with the City's public art policy, which generally requires that 1% of eligible project
construction costs be set aside for public art. Excluded from this requirement are underground
projects, utility infrastructure projects, funding from outside agencies, and costs other than
construction such as study, environmental review, design, site preparation, land acquisition and
equipment purchases. It is generally preferred that public art be incorporated directly into the
project, but this is not practical or desirable for all projects; in this case, an in‐lieu contribution to
public art will be made. To ensure that funds are adequately budgeted for this purpose
regardless of whether public art will be directly incorporated into the project, funds for public art
will be identified separately in the CIP.
N. General Plan Consistency Review. The Planning Commission will review the Preliminary CIP for
consistency with the General Plan and provide its findings to the Council prior to adoption.
O. Climate Action Plan Implementation. Council adopted Resolution No. 11159 (2020 Series)
establishes a goal of community-wide carbon neutrality by 2035 and municipal operations carbon
neutrality by 2030. The City’s Capital Improvement Program is a critical implementation tool, and
every CIP will be evaluated for alignment with these climate goals. Examples of ways projects or
project components can align the with goals include (but are not limited to):
1. Elimination or reduction of vehicle miles traveled (e.g., active transportation and transit
improvements),
2. Elimination or reduction of fossil fueled appliances, vehicles, and equipment,
3. Reduced energy consumption (e.g., efficient mechanical equipment, efficient lighting, etc.)
4. Carbon storage through tree planting or landscape management, and
5. Solid waste/ green waste diversion
P. Diversity, Equity and Inclusion. In 2020 the City Council declared diversity, equity, and inclusion
(DEI) as integral aspects of their City Mission and Meta Goal, ensuring that through policies,
programs, and projects, San Luis Obispo will foster a community that is welcoming, equitable,
safe and inclusive for all. The City’s Capital Improvement Program is a critical component of
achieving these goals by ensuring that capital projects are designed to be accessible, inclusive,
and safe for diverse populations. Capital Improvement Projects can advance diversity, equity,
through project design and accessibility, diverse representation in art components of projects,
ensuring there are programs to subsize costs for low-income communities to access the project,
providing opportunities to diverse populations and stakeholders for community input, including
DEI as a priority in RFPs or project scope, and ensuring the project does not disproportionately
burden one community over another.
Financial Plan Page 522 Page 934 of 954
Section 10. CAPITAL FINANCING AND DEBT MANAGEMENT
Link to the City’s Capital Financing & Debt Management Policy
POLICY STATEMENT
The City of San Luis Obispo (City) will maintain, at all times, debt
management policies that are fiscally prudent, consistent with State and
Federal law, and reflective of the most opportune financing strategies to
deliver on the needs and goals of the community and the City organization.
The Debt Management Policy establishes objectives, parameters, and
guidelines for responsibly issuing and administering the City’s debt. Prudent
management of the City’s debt program is necessary to achieve cost-
effective access to the capital markets and demonstrate a commitment to
long-term financial planning and sustainability.
DEBT MANAGEMENT OBJECTIVES
The policy sets forth key objectives for the City in issuing and administering
the City’s debt, which are to:
• Maintain the City’s sound financial position.
• Minimize debt service and issuance cost.
• Maintain access to cost-effective borrowing.
• Achieve and maintain highest reasonable credit rating.
• Ensure full and timely repayment of debt.
• Maintain full and complete financial disclosure and reporting including voluntary disclosures.
• Ensure compliance with State and Federal laws and regulations.
SCOPE
This policy establishes the framework for when the City of San Luis Obispo should consider issuing debt
and the overall acceptable debt burden. Long-term debt is an effective way to finance capital
improvements by matching the term of the debt with the useful life of the asset being financed. Properly
managed debt provides flexibility in current and future operating budgets and provides the City with the
long-term assets required to deliver services, programs, and public infrastructure to the community. The
City recognizes that effective debt management practices require a comprehensive Debt Management
Policy that details the use of capital debt to support the capital infrastructure in the community while
maintaining a stable and prudent fiscal outlook.
Financial Plan Page 523 Page 935 of 954
Section 11. HUMAN RESOURCE MANAGEMENT
A. Regular Staffing
1. The budget will fully appropriate the resources needed for authorized regular staffing and will
limit programs to the regular staffing authorized.
2. Regular employees will be the core work force and the preferred means of staffing ongoing, year-
round program activities that should be performed by full-time City employees rather than
independent contractors. The City will strive to provide competitive compensation and benefit
schedules for its authorized regular work force. Each regular employee will:
a. Fill an authorized regular position.
b. Be assigned to an appropriate bargaining unit, unless designated as an unrepresented
management or confidential classification.
c. Receive salary and benefits consistent with labor agreements or other compensation plans.
3. To manage the growth of the regular work force and overall staff ing costs, the City will follow
these procedures:
a. The Council will authorize all regular positions.
b. The Human Resources Department will coordinate and approve the hiring of all regular and
supplemental staff.
c. All requests for additional regular positions will include evaluations of:
• The necessity, term and expected results of the proposed activity.
• Staffing and materials costs including salary, benefits, equipment, uniforms, clerical
support and facilities.
• The ability of private industry to provide the proposed service.
• Additional revenues or cost savings, which may be realized.
4. Periodically, and before any request for additional regular positions, programs will be evaluated
to determine if they can be accomplished with fewer regular employees. (See Productivity
Review Policy)
5. Staffing and contract service cost ceilings will limit total expenditures for regular employees,
supplemental staff, and independent contractors hired to provide operating and maintenance
services.
B. Supplemental Staff
1. The hiring of supplemental staff will not be used as an incremental method for expanding the
City's regular work force.
Financial Plan Page 524 Page 936 of 954
2. Supplemental staff include all employees other than regular employees, elected officials and
volunteers. Supplemental staff include seasonal or occasional employees, employees with
irregular schedules, limited benefit employees, temporary employees, contract employees,
CalPERS retired annuitants, and leased employees. Supplemental staff may work on a full-time
or part-time basis and will generally augment regular City staffing. Supplemental staff may be
used as extra-help during peak workloads, as coverage during extended absences of regular
employees, seasonal workforce, as a means to assess ongoing staffing needs, or as the staffing
method for program delivery that is most effectively staffed using part -time hours to ensure
adequate coverage.
3. The City Manager and Department Heads will encourage the use of supplemental staff rather
than regular employees to meet peak workload requirements, fill interim vacancies, and
accomplish tasks where less than full-time, year-round staffing is required.
Under this guideline, supplemental staff hours will generally not exceed 50% of a regular, full-
time position (1,000 hours annually). There may be limited circumstances where the use of
supplemental staff on an ongoing basis in excess of this target may be appropriate due to unique
programming or staffing requirements. However, any such exceptions must be approved by the
City Manager based on the review and recommendation of the Human Resources Director.
4. Contract employees are defined as supplemental staff with written contracts approved by
Human Resources Director and City Attorney who may receive approved benefits. Contract
employees will generally be used for medium-term (generally between six months and two years)
projects, programs or activities requiring specialized or augmented levels of staffing for a specific
period.
5. Leased employees are employed during short-term, peak workload assignments to be
accomplished using personnel contracted through an outside employment agency (OEA). In
this situation, it is anticipated that City staff will closely monitor the work of leased employees
and minimal training will be required. However, they will always be considered the employees
of the OEA and not the City. All placements through an OEA will be coordinated through the
Human Resources Department and subject to the approval of the Human Resources Director.
The services of contract employees will be discontinued upon completion of the assigned project,
program or activity. Accordingly, contract employees will not be used for services that are
anticipated to be delivered on an ongoing basis and as such, a determination as to the expected need
will be made at the end of each contract term and prior to extending or renewing a contract.
C. Overtime Management
1. Overtime should be used only when necessary and when other alternatives are not feasible or
cost effective.
2. All overtime must be pre-authorized by a department head or delegate unless it is assumed pre-
approved by its nature. For example, overtime that results when an employee is assigned to
standby and/or must respond to an emergency or complete an emergency response.
Financial Plan Page 525 Page 937 of 954
3. Departmental operating budgets should reflect anticipated annual overtime costs and
departments will regularly monitor overtime use and expenditures.
4. When considering the addition of regular or temporary staffing, the use of overtime as an
alternative will be considered. The department will take into account:
a. The duration that additional staff resources may be needed.
b. The cost of overtime versus the cost of additional staff.
c. The skills and abilities of current staff.
d. Training costs associated with hiring additional staff.
e. The impact of overtime on existing staff.
D. Independent Contractors
Independent contractors are not City employees. They are used in construction of public works
projects and delivery of operating, maintenance or specialized professional services not routinely
performed by City employees. Such services will be provided without close supervision by City staff,
and the required methods, skills and equipment will generally be determined and provided by the
contractor. Contract awards will be guided by the City's purchasing policies and procedures. (See
Contracting for Services Policy)
Financial Plan Page 526 Page 938 of 954
Section 12. CONTRACTING FOR SERVICES
A. General Policy Guidelines
1. Contracting with the private sector for the delivery of services provides the City with a significant
opportunity for cost containment and productivity enhancements. As such, the City is committed
to using private sector resources in delivering municipal services as a key element in our
continuing efforts to provide cost-effective programs.
2. Private sector contracting approaches under this policy include construction projects,
professional services, outside employment agencies and ongoing operating and maintenance
services.
3. In evaluating the costs of private sector contracts compared with in -house performance of the
service, indirect, direct, and contract administration costs of the City will be identified and
considered.
4. Whenever private sector providers are available and can meet established service levels, they
will be seriously considered as viable service delivery alternatives using the evaluation criteria
outlined below.
5. For programs and activities currently provided by City employees, conversions to contract
services will generally be made through attrition, reassignment or absorption by the contractor.
B. Evaluation Criteria
Within the general policy guidelines stated above, the cost-effectiveness of contract services in
meeting established service levels will be determined on a case-by-case basis using the following
criteria:
1. Is a sufficient private sector market available to competitively deliver this service and assure a
reasonable range of alternative service providers?
2. Can the contract be effectively and efficiently administered?
3. What are the consequences if the contractor fails to perform, and can the contract reasonably
be written to compensate the City for any such damages?
4. Can a private sector contractor better respond to expansions, contractions or special
requirements of the service?
5. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and
fully evaluated, as well as the contractor's performance after bid award?
6. Does the use of contract services provide us with an opportunity to redefine service levels?
7. Will the contract limit our ability to deliver emergency or other high priority services?
8. Overall, can the City successfully delegate the performance of the service but still retain
accountability and responsibility for its delivery?
Financial Plan Page 527 Page 939 of 954
Section 13: Productivity
Ensuring the “delivery of service with value for cost” is one of the key concepts embodied in the City's
Mission Statement (San Luis Obispo Style— Quality With Vision). To this end, the City will constantly
monitor and review our methods of operation to ensure that services continue to be delivered in the
most cost-effective manner possible.
This review process encompasses a wide range of productivity issues, including:
A. Analyzing systems and procedures to identify and remove unnecessary review requirements.
B. Evaluating the ability of new technologies and related capital investments to improve productivity.
C. Developing the skills and abilities of all City employees.
D. Developing and implementing appropriate methods of recognizing and rewarding exceptional
employee performance.
E. Evaluating the ability of the private sector to perform the same level of service at a lower cost.
F. Periodic formal reviews of operations on a systematic, ongoing basis.
G. Maintaining a decentralized approach in managing the City's support service functions. Although
some level of centralization is necessary for review and control purposes, decentralization supports
productivity by:
1. Encouraging accountability by delegating responsibility to the lowest possible level.
2. Stimulating creativity, innovation and individual initiative.
3. Reducing the administrative costs of operation by eliminating unnecessary review procedures.
4. Improving the organization's ability to respond to changing needs and identify and implement
cost-saving programs.
5. Assigning responsibility for effective operations and citizen responsiveness to the department.
H. Maintaining City purchasing policies and procedures that are as efficient and effective as possible.
Financial Plan Page 528 Page 940 of 954
Glossar y
A
Abatement. A reduction in amount, degree, or intensity of something, such as a tax.
Account. A separate financial reporting unit. All budgetary transactions are recorded in accounts.
Accrual Basis. A basis of accounting in which transactions are recognized at the time they are incurred, as
opposed to when cash is received or spent.
Actuarial. A person or methodology that makes determinations or required contributions to achieve future
funding levels that address risk and time.
Ad Valorem Tax. A tax levied on the assessed value of real estate and personal property. This tax is also known
as property tax.
Adopted Budget. The proposed budget as formally approved by the City Council.
Appropriation. An authorization made by the City Council, which permits the City to incur obligations to
make expenditures for specific purposes.
Assessed Valuation. A value that is established for real and personal property for use as a basis for levying
property taxes.
Asset. Resources owned or held by a government that have monetary value.
B
Balanced Budget. A budget in which planned funds or revenues available are equal to planned fund
expenditures.
Bond. A written promise to pay a sum of money on a specific date at a specified interest rate. The interest
payments and the repayment of the principal are detailed in a bond ordinance. The most common types of
bonds are general obligation, revenue bonds, and
Bond Rating. The City of San Luis Obispo uses both of the Nation's primary bond rating services - Moody’s
Investors Service and Standard & Poor's. These rating services perform credit analysis to determine the
probability of an issuer of debt defaulting partially or fully.
Bond Refinancing. The payoff and re issuance of bonds to obtain better interest rates and/or bond
Financial Plan Page 529 Page 941 of 954
conditions.
Budget. A plan of financial operation for a specified period of time (fiscal year). The Annual Budget authorizes
and provides the basis for control of financial operations during the fiscal year.
Budget Adjustment. A procedure to revise a budget appropriation either by City Council approval through
the adoption of a supplemental appropriation ordinance for any interdepartmental or inter-fund
adjustments or by City Manager authorization to adjust appropriations within a departmental budget.
Budget Calendar. The schedule of key dates or milestones that the City follows in the preparation, adoption,
and administration of the budget.
Budget Document. The instrument used by the budget- making authority to present a comprehensive
financial program to the City Council.
Budget Team. A fun group of hard-working employees responsible for budget preparation, benchmarking,
forecasting, and financial analysis.
Budget Message. The opening section of the budget that provides the City Council and the public with a
general summary of the most important aspects of the budget, changes from the current and previous fiscal
years, and recommendations regarding the financial policy for the upcoming period.
Budgetar y Basis. This refers to the form of accounting used throughout the budget process. These generally
take one of three forms: GAAP, cash, modified accrual, or some type of statutory form.
Budgetar y Control. The control or management of a governmental unit or enterprise in accordance
with an approved budget for the purpose of keeping expenditures within the limitations of authorized
appropriations and available revenues.
C
Capital Assets. Assets of long-term character that are intended to continue to be held or used, such as land,
buildings, machinery, furniture and other equipment.
Capital Budget. The appropriation of bonds or operating revenue for improvements to facilities and other
infrastructure.
Capital Improvements. Expenditures related to the acquisition, expansion, or rehabilitation of an element
of the government’s physical plant, sometimes referred to as infrastructure.
Capital Improvements Plan. A plan for capital expenditures to provide long-lasting physical improvements to
be incurred over a fixed period of several future years. The City of San Luis Obispo’s City Charter requires
annual submission of a five-year capital program for City Council acceptance.
Financial Plan Page 530 Page 942 of 954
Capital Outlay. Expenditures that result in the acquisition of, or addition to, fixed assets.
Cash Basis. A basis of accounting in which transactions are recognized only when cash is increased or
decreased.
Contingency. A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise
budgeted.
Core Ser vice. A principal service or product delivered by a program or department that is necessary to the
successful operation of the city.
D
Debt Service. The amount of interest and principal that a City must pay each year on net direct long-term
debt plus the interest it must pay on direct short-term debt.
Deficit. The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a
single accounting period.
Department. A major administrative unit of the City that indicates overall management responsibility for an
operation or a group of related operations within a
functional area. Departments are comprised of divisions, programs, and/or sections.
Depreciation. Expiration in the service life of capital assets attributable to wear and tear, deterioration,
action of the physical elements, inadequacy, or obsolescence.
Division. A functional unit within a department.
E
Encumbrance. The legal commitment of appropriated funds to purchase an item or service. To encumber
funds means to set aside or commit funds for a future expenditure.
ESG Investing. Environmental, Social, and Governance refers to the three central factors in measuring the
sustainability and societal impact of an investment in accompany or business. The method rates company’s
environmental footprint, social behavior, and company governance such as labor practice, governing board
composition, talent management, product safety, and data security to name a few.
Estimated Revenue. The amount of projected revenue to be collected during the fiscal year.
Financial Plan Page 531 Page 943 of 954
Expenditure/Expense. This term refers to the outflow of funds paid for an asset obtained or goods and
services obtained.
F
Financial Reser ves. An unappropriated source of funding that can be utilized to meet unexpected budgetary
needs.
Fiscal Year. The time period designated by the City signifying the beginning and ending period for recording
financial transactions. The City of San Luis Obispo has specified July 1 to June 30 as its fiscal year.
Forfeiture. The automatic loss of property, including cash, as a penalty for breaking the law, or as
compensation for losses resulting from illegal activities. Once property has been forfeited, the City may claim
it, resulting in confiscation of the property.
Full Faith and Credit. A pledge of a government’s taxing power to repay debt obligations.
Full-Time Employee. A full-time employee working 38-40 hours per week and receiving benefits.
Fund. A set of inter-related accounts to record revenues and expenditures associated with a specific purpose.
Fund structure presented below
Governmental Funds
Capital Projects Fund. Capital Projects Funds are used to account for financial resources to be used
for the acquisition or construction of major capital facilities (other than those financed by Proprietary
Funds and Trust Funds).
Debt Service Fund. Debt Service Funds are set up to receive dedicated revenues used to make
principal and interest payments on City debt. They are used to account for the accumulation of
resources for, and the payment of, general obligation and special assessment debt principal, interest
and related costs, except the debt service accounted for in the Special Revenue Funds and Enterprise
Funds.
General Fund. The General Fund is the general operating fund of the City. It is used to account for
all activities of the City not accounted for in another fund.
Special Revenue Fund. Special Revenue Funds are set up as accounts for Federal or State grants legally
restricted to expenditures for specific purposes.
Proprietary Funds
Financial Plan Page 532 Page 944 of 954
Enterprise Funds Enterprise Funds are used to account for operations including debt service
(a) that are financed and operated in a manner similar to private businesses – where the intent of
the government body is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis is financed or recovered primarily through user
charges; or (b) where the governing body has determined that periodic determination of revenues
earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy,
management control accountability, or other purposes.
Internal Ser vice Funds Internal Service Funds are established to account for an entity that provides
goods and services to other City entities and charges those entities for the goods and services
provided.
Fund Balance. The difference between revenues and expenditures. The beginning fund balance represents
the residual funds brought forward from the previous year (ending balance)
G
Generally Accepted Accounting Principles. (GAAP) Uniform minimum standards for financial accounting and
recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.
General Governmental Revenue. The revenues of a government other than those derived from and retained
in an Enterprise Fund. General Governmental revenues include those from the General, Debt Service, and
Special Revenue Funds.
General Obligation Bonds. Bonds that finance a variety of public projects such as streets, buildings, and
improvements; the repayment of these bonds is usually made from secondary property taxes, and these
bonds are backed by the full faith and credit of the issuing government.
Goal. A statement of direction based on identified strategic priorities. Should be measurable and able to be
achieved in 3 to 5 years.
Grant. A contribution by the State or Federal government or other organization to support a particular
function. Grants may be classified as either categorical or block depending upon the amount of discretion
allowed the grantee.
I
Indirect Cost. A cost necessary for the functioning of the organization as a whole, but which cannot be
directly assigned, such as administrative support, facility maintenance or custodial services.
Inflation. A rise in price levels caused by an increase in available funds beyond the proportion of available
goods.
Financial Plan Page 533 Page 945 of 954
Infrastructure. Public domain fixed assets including roads, curbs, gutters, sidewalks, drainage systems, lighting
systems, and other items that have value only to the City.
Interest Income. Revenue associated with the city cash management activities of investing fund balances.
Intergovernmental Resources. Funds received from federal, state, and other local government sources in the
form of grants, shared revenues, and payments in lieu of taxes.
Inter-fund Transfer. The movement of monies between funds of the same governmental entity.
Inter-local Agreement. A contractual agreement between two or more governmental entities.
Internal Ser vices Charges. The charges to user departments for internal services provided by another
government agency, such as data processing, equipment maintenance and communications.
L
Levy. To impose taxes for the support of government activities.
Long-Term Debt. Debt with a maturity of more than one year after the date of issuance.
M
Major City Goals. The most important, highest priority goals for the City to accomplish over the next two
years, and as such, resources should be included in the 2023-25 Financial Plan.
Major Fund. Funds whose revenues, expenditures/ expenses, assets, or liabilities (excluding extraordinary
items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5
percent of the aggregate amount for all governmental and enterprise funds. These represent the City's most
important funds and include the General Fund.
Mandate. A requirement from a higher level of government that a lower level of government perform a task
in a particular way or standard.
Mission Statement. The statement that identifies the particular purpose and function of an entity.
Modified Accrual Basis. The basis of accounting under which revenues are recognized when measurable and
available to pay liabilities. Expenditures are recognized when the liability is incurred except for interest on
long-term debt which is recognized when due, and the noncurrent portion of accrued vacation and sick
leave, which is recorded in general long-term debt.
Financial Plan Page 534 Page 946 of 954
Municipal Code. A collection of laws, rules, and regulations that apply to the City and its citizens.
N
Neighborhood Ser vices. A program developed to promote and strengthen the stability, development,
revitalization, and preservation of neighborhoods through community-based problem solving.
Net Position. Governmental financial statement reporting for proprietary funds where assets plus deferred
outflows of resources, less liabilities, less deferred inflows of resources, equals net position program.
O
Objective. A specific measurable and observable result of an organization’s activity, which advances the
organization toward its goal.
Ombudsman. One that investigates reported complaints, reports findings, and helps to achieve equitable
settlements.
OPEB. Other post-employment benefits are benefits that an employee will begin to receive at the start of
retirement such as health care and deferred-compensation arrangements.
Operating Budget. The portion of the budget that pertains to daily operations that provide basic
governmental services. The operating budget contains appropriations for expenditures such as personnel,
supplies, utilities, materials, travel, and fuel.
Operating Expenses. The cost for personnel, materials, and equipment required for a department to
function.
Operating Revenue. Funds that the government receives as income to pay for ongoing operations, including
such items as taxes, user fees, interest earnings, and grant revenues. Operating revenues are used to pay for
day-to- day services.
P
Pay-As-You-Go Financing. A term used to describe a financial policy by which the capital program is financed
from current revenues rather than through borrowing.
Financial Plan Page 535 Page 947 of 954
Per Capita. A measurement of the proportion of some statistic to an individual resident determined by
dividing the statistic by the current population.
Performance Budget. A budget that focuses upon departmental goals and objectives rather than line items,
programs, or funds. Workload and unit cost data are collected in order to assess the effectiveness and
efficiency of services. Typical measures collected might include average emergency response time for fire.
Performance Measure. Data collected to determine how effective and/or efficient a program is in achieving
its objectives.
Policy. A plan, course of action or guiding principle designed to set parameters for decisions and actions.
Prior Year Encumbrances. Obligations from previous years in the form of purchase orders or contracts that
are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be
encumbrances when the obligations are paid or otherwise terminated.
Potable Water. Water that is fit to drink.
Program. Group activity, operations, or organizational units directed to attaining specific objectives and
achievements and budgeted as sub-units of a department.
Program Budget. A budget that allocates money to the functions or activities of a government rather than
to specific items of cost or to specific departments.
Property Tax. A levy upon the assessed valuation of the property within the City of San Luis Obispo upon each
$100 of assessment.
R
Retained Earnings. An equity account reflecting the accumulated earnings of an enterprise or internal service
fund.
Revenue. Funds that the government receives as income. It includes such items as tax payments, fees from
specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest
income.
Revenue Bonds. Bonds usually sold for constructing a project that will produce revenue for the government.
That revenue is pledged to pay the principal and interest of the bond.
Reser ve. An account used to indicate that a portion of a fund’s assets are legally restricted for a specific
purpose and is, therefore, not available for general appropriation.
Resolution. A special or temporary order of a legislative body requiring less legal formality than an ordinance
Financial Plan Page 536 Page 948 of 954
or statute.
Resources. Total amounts available for appropriation including estimated revenues, fund transfers, and
beginning balances.
Risk Management. An organized attempt to protect a government’s assets against accidental loss in the most
economical method.
S
Sales Tax. Tax imposed on the taxable sales of all final goods.
Source of Revenue. Revenues are classified according to their source or point of origin.
Special Assessment. A compulsory levy made against certain properties to defray part or all of the cost of a
specific improvement or service deemed to primarily benefit those properties.
State and Local Fiscal Recovery Funds. Federal program authorized by the American Rescue Plan Act
(ARPA) to provide $350 billion to state, territorial, local, and Tribal governments across the United States
to support their response to and recovery from the COIVD-19 public health emergency.
Strategic Plan. A document outlining long-term goals, critical issues, and action plans that will increase the
organization’s effectiveness in attaining its vision, priorities, mission, goals and objectives.
System Development Charge. That portion of the connection charge that is determined to be the
customer’s proportionate share of the cost of providing transmission, pumping, and storage facilities required
to serve the various distribution areas or zones within the system.
T
Tax Levy. The resultant product when the tax rate per $100 is multiplied by the tax base.
Taxes. Compulsory charges levied by a government for the purpose of financing services performed for the
common benefit of the people. This term does not include specific charges made against particular persons
or property for current or permanent benefit, such as special assessments.
Transfers In/Out. Amounts transferred from one fund to another to assist in financing the services for the
recipient fund.
U
Undesignated Fund Balance. The portion of a fund’s balance that is not legally restricted for a specific purpose
Financial Plan Page 537 Page 949 of 954
and is available for general appropriation.
Unencumbered Balance. The amount of an appropriation that is neither expended nor encumbered. It is
essentially the amount of money still available for future purposes.
Unfunded Pension Liability. The difference between assets in a pension fund and the amount of benefits
the fund is required to pay out in the long-term.
Unreserved Fund Balance. The portion of a fund’s balance that is not restricted for a specific purpose and is
available for general appropriation.
Useful Life. The period of time that a fixed asset is able to be used. This can refer to a budget period of time
for an equipment class or the actual amount of time for a particular item.
User Charges. The payment of a fee for direct receipt of a public service by the party who benefits from the
service.
Financial Plan Page 538 Page 950 of 954
DRAFT
R _____
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE 2023-25 FINANCIAL PLAN
AND FISCAL YEAR 2023-24 BUDGET.
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City
Manager has submitted the 2023-25 Financial Plan to the Council for review and
consideration consistent with established budget and fiscal policies; and
WHEREAS, the preparation of the 2023-25 Financial Plan was based on extensive
public outreach, comment, and input and the City Council’s strategic vision as discussed
during public hearing for strategic budget direction on April 18, 2023; and
WHEREAS, the Planning Commission reviewed the City’s Capital Improvement
Plan for the 2023-25 Financial Plan on April 26, 2023, and confirmed the plan’s conformity
with the City’s General Plan; and
WHEREAS, the City Council held a public hearing on June 6, 2023 to consider the
preliminary 2023-25 Financial Plan and Fiscal Year 2023-24 budget appropriations for
the General Fund and Enterprise Funds; and
WHEREAS, the City maintains a minimum fund balance of at least 20% of the
operating expenditures in the General Fund to provide for economic uncertainties, local
disasters, and other financial hardships; and
WHEREAS, expenditures related to the immediate response to the 2023 storms
and damages caused by the incident are an appropriate use of the General Fund reserve.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The 2023-25 Financial Plan and Fiscal Year 2023-24 budget with
appropriations consistent with the proposed capital improvement plan are herewith
adopted and official copies of the financial plan, budget, and the capital improvement plan
for all funds, as adopted, shall be maintained on file with the City Clerk along with this
Resolution.
SECTION 2. The City Manager is hereby delegated authority to approve budget
adjustments consistent with the adopted budget appropriations and financial policies to
maintain budgetary flexibility and balances for the organization.
SECTION 3. The City Manager is hereby delegated the authority to approve non
substantive format and typographical changes found within the 202 3-25 Financial Plan
as needed.
Financial Plan Page 539 Page 951 of 954
DRAFTResolution No. ____ (2023 Series) Page 2
R _____
SECTION 4. The City Manager shall have authority to use General Fund Reserve
balance to pay for operating and capital expenditures related to the January and March
2023 storm events.
SECTION 4. The City Council approves the appropriation limit as set forth on
page 504 of the 2023-25 Financial Plan and 2023-24 Budget.
On motion of ___________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted on ___________, 2023.
______________________________
Mayor Erica A. Stewart
ATTEST:
Teresa Purrington,
City Clerk
APPROVED:
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
Financial Plan Page 540 Page 952 of 954
R _____
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE 2023-25 FINANCIAL PLAN
AND FISCAL YEAR 2023-24 BUDGET
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City
Manager has submitted the 2023-25 Financial Plan to the Council for review and
consideration consistent with established budget and fiscal policies; and
WHEREAS, the preparation of the 2023-25 Financial Plan was based on extensive
public outreach, comment, and input and the City Council’s strategic vision as discussed
at a public hearing for strategic budget direction on April 18, 2023; and
WHEREAS, the Planning Commission reviewed the City’s Capital Improvement
Plan for the 2023-25 Financial Plan on April 26, 2023, and confirmed the plan’s conformity
with the City’s General Plan; and
WHEREAS, the City Council held a public hearing on June 6, 2023, to consider
the preliminary 2023-25 Financial Plan and Fiscal Year 2023-24 budget appropriations
for Governmental Funds and Enterprise Funds; and
WHEREAS, the City maintains a minimum fund balance of at least 20% of the
operating expenditures in the General Fund to provide for economic uncertainties, local
disasters, and other financial hardships; and
WHEREAS, expenditures related to the immediate response to the 2023 storms
and damages caused by the incident are an appropriate use of the General Fund reserve.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The 2023-25 Financial Plan and Fiscal Year 2023-24 budget with
appropriations consistent with the proposed Capital Improvement Plan are herewith
adopted and official copies of the Financial Plan, Budget, and the Capital Improvement
Plan for all funds, as adopted, shall be maintained on file with the City Clerk along with
this Resolution.
SECTION 2. The City Manager is hereby delegated authority to approve budget
adjustments consistent with the adopted budget appropriations and financial policies to
maintain budgetary flexibility and balances for the organization.
SECTION 3. The City Manager is hereby delegated the authority to approve non-
substantive format and typographical changes found within the 202 3-25 Financial Plan
as needed.
Page 953 of 954
Resolution No. ____ (2023 Series) Page 2
R _____
SECTION 4. The City Manager shall have the authority to use General Fund
Reserve balance to pay for operating and capital expenditures related to the January and
March 2023 storm events.
SECTION 4. The City Council approves the appropriation limit as set forth on page
505 of the 2023-25 Financial Plan and 2023-24 Budget.
On motion of ___________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted on the ____ day of ________, 2023.
______________________________
Mayor Erica A. Stewart
ATTEST:
Teresa Purrington,
City Clerk
APPROVED:
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 954 of 954
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546.8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a resident
of the county aforesaid, I am over the age of
eighteen years, and not a party interested in the
above entitled matter. I am the principal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of San Luis Obispo, and which has been
adjudged a newspaper of general circulation by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
February 5, 1993, Case number CV72789: that
notice of which the annexed is a printed copy
(set in type not smaller than nonpareil), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to -wit:
in the year 2023,
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this day
2�5
/ of gaZZ41--
2023.
7� 02�
Patricia Horton, New Times Legals
Proof of Publication of
10 SAN LUIS OBISPO CITY COUNCIL
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites all interested persons
to attend a public hearing on Tuesday. June 6, 20M at 5:30 p.m.
in the Council Chambers at City Hall, 990 Palm Street, San Luis
Obispo. Meetings can be viewed remotely on Government
Access Channel 20 Or sheathed live from the Chys YouTube
channel at httoi/v�l ay Public comment, prior to the
start of the meeting, may be submitted in writing via U.S. Mail
delivered to the CRY Clerk's Office at 990 Palm Streep San Luis
Obispo, CA 93101 or by email to ema lcou�_
PUBLIC HEAPING ITEM:
A Public Hearing to consider adopting the 2023-25
Financial Plan. After a derisive Community participation
end several Council budget workshops and hearings
beginning in November 2022, the 20M-25 Financial Plan is
now ready for adoption. Key elements ofthe Financial Plan
include:
I. Focus on long-term fiscal health, aligned with Fiscal
and Budget Policies and Financial Responsibility and
Sustainabilik, Philosophy,
2. Align budget resources with Council -adopted Major
City Goal strategies.
3. PrionUze storm recovery and prepare for fmure storm
events
4. Invest in the future and fund maintenance of existing
infrastructure and invest in the capital improvement
program,
5. Address both required and "pre" payments to
unfunded liabilities.
For more information, contactEm7/yJackson,
Finance Directorforthe Cdys Finance Deparonens n
ISBN 781-7125 or by email, oyackson®slocdyorg.
The City Council may also discuss other hearings or business
items before or after the items listed above. If you challenge
the proposed project in court, you may be limited to raising
Only those issues you or someone else raised at the public
hearing described in this notice, or in written correspondence
delivered to the City Council at, or prior to, the public hearing.
Council Agenda Reports for this meeting will be available
for review one week in advance of the meeting date on me
City's webske, under me Public Meeting Agendas web page:
1129A/ al / emmenamovo,and -
ill
a A - d_�m Please call me City Clerk's ice at
(805) 781-7114 for more infmma `0'n The City Council meeting
will be televised live On Charier Cable Channel 20 and live
sheathing on the City's YouTube channel Irtaituntbealmmy.
Teresa Farrington
City Clerk
City of San Luis Obispo
MaY25.2023
2023-25 Financial Plan
& 2023-24 Budget Adoption
June 6, 2023
1
City Manager Message
Balanced budget, no significant changes from Strategic
Budget Direction (April 2023)
•Continuation of Major City Goals
•Supporting core services
•Partnerships with Fed, State, County, non-profits and business community
Building on current efforts to move into the future
Focus on Storm Recovery
•Ongoing monitoring, reporting and transparency will be vital
Prepare to be nimble and adjust over the next two years
Maintain City values during economic turbulence
Thank you to the community, Council and staff!
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 6-14
3
Developed or updated
plans/programs to support
growth and goals
Secured millions in outside
grant funding
Community
preparedness
efforts
Mobile Crisis
Unit/CAT
Increased City Open
Space
DEI Office
Award winning
Capital
projects
Implemented
provisions of
state laws
Homelessness Strategic Plan | Climate Action Plan | Parks & Rec ‘Blueprint for the Future’ | Economic Development Strategic Plan
Accomplishments
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
•Balancing resources with ambitions
•Inflationary pressures on expenditures
•Wage inflation cycle
•More revenue, more volatility
•CalPERS unfunded liabilities
•Storm recovery expenditures and preparation for future
storm events
•Workforce transition and development
•City growth and service expansion
•State budget forecast
Challenges to come
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 10
4
Recommendation
Adopt a resolution entitled. “A Resolution of the Council of the City of
San Luis Obispo, California, approving the 2023-25 Financial Plan and
Fiscal Year 2023-24 Budget.”
Policy Context:
The City adopts a two-year Financial Plan, (Attachment A) and the budget (also known as
appropriations) is adopted annually. Pursuant to Section 804 of the City Charter, the City
Council must adopt the 2023-24 Budget by June 30, 2023, in order for the appropriations to be
in place when the 2023-24 fiscal year begins on July 1, 2023. This action is accomplished by
Resolution, which is provided as Attachment B.
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
5
How we got here
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 35-38
6
City at a Glance
47,653
Population
(largest city in SLO County)
13.6
Square Miles
28
City Parks 65 4,040
Acres of Open SpaceTrail Mileage
MAINTAIN
12,970
Trees in the Urban Forest
135
Miles of
Roadway
191
Miles of
Water Lines
148
Miles of Sewer
Lines
5,509
Acre Feet of
Water Consumed
83
Miles ofBikeways2,817
Public Parking
Spaces
•San Luis Obispo is a full-service city that provides police, fire,
water, sewer, streets, transit, parking, planning, building,
engineering, and parks and recreation service to the community.
Financial Plan Pg. 19-20
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
7
1
Focus on long-term fiscal
health, aligned with Fiscal
and Budget Policies and
Financial Responsibility
and Sustainability
Philosophy.
3
Align budget resources
with Council adopted
Major City Goal strategies.
2
Prioritize storm recovery
and seek as much
reimbursement through
FEMA and CalOES as
possible
4
Plan to restore the
minimum fund balance
and working capital policy
requirements.
6
Address both required and
“pre” payments to
unfunded liabilities.
5
Invest in the future and
fund maintenance of
existing infrastructure and
invest in the capital
improvement program.
Key Elements
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
8
Where the Money Comes from –All Funds
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 85
9
Budgetary Allocations –All Funds
2024-252023-24
Total
$192
million
1 General Fund
▪$115 Million
2 Water Fund
▪$32 million
3 Sewer Fund
▪$24 million
4 Parking Fund
▪$10 million
5 Transit Fund
▪$9.6 million
6 Special Revenue
▪TBID -$2.1M
▪DBID -$281K
Total
$239
million
1 General Fund
▪$114 million
2 Water Fund
▪$32 million
3 Sewer Fund
▪$23 million
4 Parking Fund
▪$58 million
5 Transit Fund
▪$10 million
6 Special Revenue
▪TBID -$2.1M
▪DBID -$275K
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 86
10
Storm Response in the 2023-25 Financial Plan
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 74
11
Costs to Date $3,969,006
Estimated future expenses for high priority repairs
based on initial assessment
>$5,000,000
Estimate included in forecast*$11,750,000
* Includes assumed use of $9 M from operating reserve in FY 2022 -23 and FY 2023-24 and $2.75 M budgeted for CIP projects that may
not be 100% reimbursable.
•Use of reserves per policy will allow for adequate cash flow until reimbursements are
received
•Expected reserve level at 17% of operating costs in FY 2023-24 (3% 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
Major City Goals
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
12
➢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”
➢Anything requiring new resources identified
Climate Action
Natural Resources Protection
($1,024,108)
Urban Forest Services ($368,367)
Ranger Services ($833,907)
Stormwater and Flood Control
($1,195,293)
DEI
Office of Diversity Equity
Inclusion ($595,806)
Housing
Housing Policy & Programs
($1,203,675)
Mobile Crisis Unit ($320,417)
Neighborhood Services
($302,867)
Internal ServicesCommunity Services Group Public Safety
Economic Resiliency
Cultural Activities ($365,000)
Economic Development ($928,984)
Community Promotions ($411,735)
Financial Plan Pg. 39-62
Debt 13
AAA
•Extremely strong capacity to meet financial commitments.
Highest rating.
AA •Very strong capacity to meet financial committments.
A
•Strong cpacity to meet financial commitments, but somewhat
susceptible to adverse economic conditions and changes in
circumstance.
BBB
•Adequate capacity to met financial commitments, but more
subject to adverse economic conditions.
BB
•Less vulnerable in the near-term, but faces major ongoiong
uncertainties to adverse business, financial, and economic
conditions.
CCC
•Currently vulnerable and dependent on favorable business,
financial, and economic conditions to meet financial
committments
CC
•Highly vulnerable; default has not yet occured, but it is
expected to be a virtual certainty.
C
•Currently highly vulnerable to non-payment, and ultimate
recovery is expected to be lower than that of higher rates
obliations.
•In 2021, the City recently received affirmation from nationally recognized
statistical rating organization Fitch Ratings that the City’s Issuer Default Rating is
“AA+” and the rating outlook is stable
•Fitch Ratings’analysts commended the City’s ability to respond to the economic
impacts of the COVID-19 pandemic.
•Strong fiscal controls and dedication to prudent financial management have
been instrumental in the maintaining an excellent credit rating.
Year GENERAL PARKING*SEWER WATER Total
2024 1,853,674 852,116 1,382,346 1,870,392 5,958,528
2025 1,768,903 850,609 7,005,933 1,868,807 11,494,252
2023-25 Total Debt Obligation
*Current debt only and table will be updated as part of the supplemental budget after any bonds
and debt schedules are confirmed for the proposed Cultural Arts District Parking Structure.
General Fund Debt Policy Adherence
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
General Fund
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
14
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28In thousandsTax and Fee Revenue Trends
Sales & Use Tax Property Tax Other Tax Revenue Total Fees & Other Revenue
Voter approved
Local Sales Tax
Measure
Expected slow down of revenue
growth over the next two years
15
Financial Plan Pg. 76
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
$-
$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
Capital
Operating
Total Revenue
Undesignated Fund Balance
(thousands)$121$0*$487$45 $129
*Storm damage expenditures will be funded through the reserve and any undesignated fund balance will be used to replenish the reserve. Financial Plan Pg. 89
16
0.1% of budget
Community Services Overview (23-24 Budget)
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
17
Financial Plan Pg. 104 & 245
Police
25%
Public Works
20%
Fire
17%
Administration/IT
12%
Community Development
9%
Parks and Recreation
7%
Finance 4%
Human Resources
2%City Attorney
2%
Solid Waste
1%
18
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Budget Enhancements/SOBCs (Significant Operating Budget Changes)
Climate Action,
$50,000
Core Services,
$992,674
DEI, $20,000
Economic,
$606,000
Housing &
Homelessness,
$305,000
FY 2023-24 GENERAL FUND SOBC
INVESTMENT BY TYPE
Climate Action,
$50,000
Core Services,
$876,311
DEI, $25,000
Economic,
$556,000
Housing &
Homelessness,
$350,000
FY 2024-25 GENERAL FUND SOBC
INVESTMENT BY TYPE
Total $1.97 M Total $1.86 M Financial Plan Pg. 106-110
Local Revenue Measure
LRM funds about 10%of the General
Fund’s total operating budget and
78%of the capital budget
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
General purpose, 1.5% sales tax
Financial Plan Pg. 63-70
•The City’s #1 source of revenue
•Budget is approximately $30 million annually
•Funds 51 existing full-time equivalent positions
•33% of budget allocated to streets maintenance and transportation (including bike and
pedestrian improvements)
•Split 77% towards capital projects and 23% towards operating
•Budget allocations reviewed and approved by REOC on 3/30/23
19
20
Appropriation Limit
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
•Under Article XIII B of the California Constitution, the City is required to
calculate and adopt an appropriation limit to guide the budget appropriations.
•The limit restricts appropriations from tax revenues by State and local
governments.
•The proposed 2023-24 Budget is well within the limit
FY 2023-24 Appropriation Limit
Appropriations Limit 2022-23 $85,706,220
Cost of Living Increase Factor 4.79%
Population Factor: County Population Growth 1.15%
Compounded Percentage Factor (multiplicative not additive)1.06%
Appropriations Limit 2023-24 $90,839,932
Appropriations Subject to Limit $71,693,192
Appropriation amount under/(over) Limit $19,146,740
Financial Plan Pg. 505
Enterprise Funds
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
21
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
22
Water & Sewer Funds
•Water demand has stayed consistent
•2023-25 Financial Plan accounts for 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
•Forecasts assume drawdown of working capital for major CIP projects and
debt service payments
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
Financial Plan Pg. 267-307
Parking Fund
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
23
•Use of some working capital to self-finance the approximately $6.9
million for the Phase 1 costs of the Cultural Arts District parking
structure
•Revenue forecast assumes conservative annual growth
•One SOBC: $150,000 for a rate study analysis
•Upcoming rate changes (Approved 6/7/2022):
Financial Plan Pg. 319-326
Parking -Lots &
Streets
48%
Parking
Structures
32%
Long Term
Parking
7%
Lease Revenue
4%
Other Revenue
9%
PARKING FUND REVENUE
Parking Hourly Rate Changes Current Parking
Rate
Effective
July 1, 2023
Effective
July 1, 2025
1 Parking Meters Hourly Rate
2 Tier 1 (Super Core) $2.00 $4.00 $5.00
3 Tier 2 (Core) $2.00 $4.00 $5.00
4 Tier 3 (Outlying Areas) $1.50 $3.00 $3.00
5 Parking Structures Hourly Rate
6 Hourly $1.50 $3.00 $3.00
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
24
Transit Fund
•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
Financial Plan Pg. 310-318
Capital Improvement
Plan
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
25
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
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
26
Financial Plan Pg. 345-348
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
Structure in this
year
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 358
28282024-25 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
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Financial Plan Pg. 363-498
29
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----
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
30
Major Parking and Transit Capital Projects
coming in 2023-25:
Financial Plan
Overview General Fund Enterprise Funds Capital Improvement
Plan
Cultural Arts District
Parking Structure
Parking Structure
Maintenance
Parking Pay Station
Installation
Enforcement and Gate
Entry Equipment
Bus Replacements with
Electric Vehicles
Annual bus shelter
replacements
Transit facility EV
charging station
infrastructure
Parking lot maintenance
at bus yard
----Parking----
----Transit----
31
2023-25
Financial Plan
Adoption
2024-25
Supplemental
Budget
Q1
Review
Q2
Review
Q4
Review
Q3
Review
FY 2023-24
Ongoing monitoring and adjustment to budget and forecast as needed
June 2023
June 2024
Public Hearing for the 2023-25 Financial Plan & adoption of 2023-24 budget 6/6
Continued Review and Adoption 2023-25 Financial Plan (only if needed)6/20
Next Steps
Recommendation
Adopt a resolution entitled. “A Resolution of the Council of the City of
San Luis Obispo, California, approving the 2023-25 Financial Plan and
Fiscal Year 2023-24 Budget.”
Policy Context:
The City adopts a two-year Financial Plan, (Attachment A) and the budget (also known as
appropriations) is adopted annually. Pursuant to Section 804 of the City Charter, the City
Council must adopt the 2023-24 Budget by June 30, 2023, in order for the appropriations to be
in place when the 2023-24 fiscal year begins on July 1, 2023. This action is accomplished by
Resolution, which is provided as Attachment B.
32