HomeMy WebLinkAbout09-11-2023 REOC Agenda Packet
Revenue Enhancement Oversight Commission
AGENDA
Monday, September 11, 2023, 5:00 p.m.
Council Hearing Room, 990 Palm Street, San Luis Obispo
The Revenue Enhancement Oversight Commission holds in-person meetings. Zoom participation will
not be supported.
INSTRUCTIONS FOR PUBLIC COMMENT:
Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):
Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990
Palm Street, San Luis Obispo, California, 93401.
Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your
email, please include the date of the meeting and the item number (if applicable). Emails will not
be read aloud during the meeting.
Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the
agenda item number you are calling about, and leave your comment. Verbal comments must be
limited to 3 minutes. Voicemails will not be played during the meeting.
*All correspondence will be archived and distributed to members, however, submissions received
after the deadline may not be processed until the following day.
Public Comment during the meeting:
Meetings are held in-person. To provide public comment during the meeting, you must be
present at the meeting location.
Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy,
Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire
to utilize electronic visual aids to supplement their oral presentation are encouraged to provide
display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the
City Clerk's Office at cityclerk@slocity.org or (805) 781-7114.
Pages
1.CALL TO ORDER
City Clerk, Teresa Purrington, to administer oath to new commissioner Zachary
Moody.
Chair Hamari will call the Regular Meeting of the Revenue Enhancement
Oversight Commission to order.
2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
The public is encouraged to submit comments on any subject within the
jurisdiction of the Revenue Enhancement Oversight Commission that does not
appear on this agenda. Although the Commission will not take action on items
presented during the Public Comment Period, the Chair may direct staff to place
an item on a future agenda for discussion.
3.CONSENT
Matters appearing on the Consent Calendar are expected to be non-
controversial and will be acted upon at one time. A member of the public may
request the Revenue Enhancement Oversight Commission to pull an item for
discussion. The public may comment on any and all items on the Consent
Agenda within the three-minute time limit.
3.a CONSIDERATION OF MINUTES - MARCH 30, 2023 REVENUE
ENHANCEMENT OVERSIGHT COMMISSION MINUTES
5
Recommendation:
To approve the Revenue Enhancement Oversight Commission Minutes
of March 30, 2023.
4.BUSINESS ITEMS
4.a ELECT REOC OFFICERS AND APPOINT TWO COMMISSIONERS TO
BE ON THE ANNUAL REPORT SUBCOMMITTEE
7
Recommendation:
Elect a Chairperson and Vice-Chairperson to serve for a one-
year term.
1.
Appoint two Commissioners to serve on a subcommittee to
assist in the development of the 2022-23 Annual Community
Report
2.
4.b FY 2022-23 LOCAL REVENUE MEASURE UNAUDITED YEAR-END
FINANCIALS
31
Receive a report and review unaudited revenues and expenditures of
the Local Revenue Measure sales tax revenue for the last fiscal year.
5.STUDY SESSION - OVERVIEW OF THE LOCAL REVENUE MEASURE, THE
REOC BYLAWS, AND THE ADVISORY BODY ROLE
35
6.STAFF AND COMMISSIONER ANNOUNCEMENTS
6.a STAFF UPDATES
6.b COMMISSIONER UPDATES
7.ADJOURNMENT
The next Regular Meeting of the Revenue Enhancement Oversight Commission
is tentatively scheduled for December 2023.
LISTENING ASSISTIVE DEVICES are available -- see the Clerk
The City of San Luis Obispo wishes to make all of its public meetings accessible
to the public. Upon request, this agenda will be made available in appropriate
alternative formats to persons with disabilities. Any person with a disability who
requires a modification or accommodation in order to participate in a meeting
should direct such request to the City Clerk’s Office at (805) 781-7114 at least
48 hours before the meeting, if possible. Telecommunications Device for the
Deaf (805) 781-7410.
Agenda related writings or documents provided to the Revenue Enhancement
Oversight Commission are available for public inspection on the City’s website,
under the Public Meeting Agendas web page:
https://www.slocity.org/government/mayor-and-city-council/agendas-and-
minutes. Meeting video recordings can be found on the City’s website:
http://opengov.slocity.org/WebLink/Browse.aspx?id=61028&dbid=0&repo=CityCl
erk
Page 4 of 56
Revenue Enhancement Oversight Commission
Minutes - DRAFT
Thursday, March 30, 2023
Regular Meeting of the Revenue Enhancement Oversight Commission
Teresa Purrington, City Clerk Administered an Oath for new Commissioner, Renne
Gardner
CALL TO ORDER
A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was
called to order on Wednesday, March 30, 2023, at 5:33 pm by Chair Hamari.
ROLL CALL :
Present: Commissioners Christopher Ellwood, Tony Skapinsky, Renne Gardner, Anthony
Bozzano, and Chair Hamari
Absent: None
Staff: Emily Jackson, Finance Director who also served as Recording Secretary
Natalie Harnett, Principal Budget Analyst
Brian Nelson, Deputy Director of Public Works
Matt Horn, Public Works Director
Greg Cleary, Capital Improvement Program Administrative Manager
PUBLIC COMMENT ITEMS NOT ON THE AGENDA
Vice Mayor Marx and Councilmember Shoresman provided comment on the role of REOC.
--End of Public Comment--
APPROVAL OF MINUTES
1. Consideration of Minutes of the Regular Revenue Enhancement Oversight
Commission Meeting of March 1, 2023.
ACTION: UPON MOTION BY COMMISSIONER BOZZANO SECONDED BY
COMMISSIONER ELLWOOD, CARRIED 5-0-0, the Revenue Enhancement Oversight
Commission approved the Minutes of the Regular Revenue Enhancement Oversight
Commission Meeting of March 1, 2023, as presented.
Page 5 of 56
BUSINESS ITEMS
2. Proposed 2023-25 Local Revenue Measure Expenditures
Staff provided a presentation on the recommendation to the City Council the use of Local
Revenue Measure as part of the 2023-25 Financial Plan Adoption.
Public Comment
None
ACTION: UPON MOTION BY COMMISSIONER SKAPINSKY, SECONDED BY
COMMISIONER BOZZANO, CARRIED 5-0-0 to recommend to the City Council the use of
unassigned Local Revenue Measure funds as presented in the report as part of the 2023-25
Financial Plan Adoption.
COMMENT AND DISCUSSION
Staff Updates – none
Commission Communications – Commissioner Bozzano made a motion to agendize
discussion of the REOC role and purview as a study session during the next regular
meeting. Commissioner Skapinsky seconded the motion.
ADJOURNMENT
The meeting was adjourned at 6:34 p.m. to the next Regular Revenue Enhancement Oversight
Commission meeting tentatively scheduled for July 2023.
APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: xx/xx/xxxx
Page 6 of 56
Revenue Enhancement Oversight Commission
Agenda Report
For Agenda of: 9/11/2023
Item Number: 4a
FROM: Natalie Harnett, Principal Budget Analyst
Phone Number: (805) 781-7128
E-mail: nharnett@slocity.org
SUBJECT: ELECT REOC OFFICERS AND APPOINT TWO COMMISSIONERS TO
BE ON THE ANNUAL REPORT SUBCOMMITTEE
RECOMMENDATION
1. Elect a Chairperson and Vice-Chairperson to serve for a one-year term.
2. Appoint two Commissioners to serve on a subcommittee to assist in the development
of the 2022-23 Annual Community Report.
DISCUSSION
REOC Bylaws and Election of Officers
The REOC bylaws contain the Commission’s purpose, and policies on conduct,
membership, terms, officers, meetings, attendance, quorum, voting, subcommittees,
public records and other rules and procedures.
Article 2. Election of Officers
1. The Commission shall select a Chairperson and Vice-Chairperson from among
its members to serve for a one-year term beginning with the first meeting
following the start of each fiscal year (July 1).
2. Commissioners shall serve as Chairperson or Vice-Chairperson at the
discretion of the Commission.
3. The Chairperson shall preside at all meetings of the Commission. The Vice-
Chairperson is Chairperson in the absence of the Chairperson or in case of
inability of the Chairperson to act.
Local Revenue Measure Annual Community Report
Chapter 3.15 of the Municipal Code (Essential Services Transactions [Sales] a nd Use
Tax) includes specific citizen oversight and fiscal accountability provisions. These
provisions include an annual community report:
Annual Community Report. A written report shall be reviewed at a public hearing by
the Revenue Enhancement Oversight Commission, and a summary will be provided
Page 7 of 56
Item Click or tap here to enter text.
annually to every household in the community detailing how much revenue is being
generated by the measure and how funds are being spent (MC 3.15.040.E).
Annual Community Report Preparation and Subcommittee Role
The annual community report is produced based on revenues and expenditures from the
previous fiscal year. The most recent report was published for Fiscal Year 202 1-22
(Attachment B) and all of the reports can be viewed on the City’s website at
www.slocity.org. This report included:
1. Background of the sales tax measure
2. Local Revenue Measure Ballot Language (Measure G)
3. Revenue overview including historic data
4. How Local Revenue Measure funds were used including Project Spotlight descriptions
and photography
5. Planned Local Revenue Measure uses for the following year
6. Detailed Local Revenue Measure projects and services along with expenditures
7. REOC members
Although staff recommend maintaining the overall style of the current report because it
is in line with City branding and will be familiar to the public, the REOC and the
appointed subcommittee members can help guide the direction and design of the report,
select spotlight projects and review the draft report before publication.
ATTACHMENTS
A - REOC Bylaws
B - 2021-22 Annual Community Report
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Advisory Body Handbook September 21, 2021
City of San Luis Obispo 40 | P a g e
D. Citizens' Revenue Enhancement Oversight Commission Bylaws (T/SP)
MEMBERSHIP
The Citizens’ Revenue Enhancement Oversight Commission (REOC) has five members. Members
must be residents and registered voters of the City. When recruiting members, the City seeks
members that have experience with finance, budgeting, or municipal accounting, though this is not
a requirement of membership.
PURPOSE
REOC was established to provide transparency and maximize city accountability, as part of the
passage of a ballot measure approving a transactions (sales) and use tax to protect and maintain
essential services and facilities—such as open space preservation; bike lanes, sidewalks and other
traffic congestion relief projects; public safety; neighborhood street paving and code enforcement;
flood protection; senior citizen programs including services and facilities; and other vital general
purpose services and capital improvement projects. REOC is responsible for reviewing and making
budget recommendations directly to the City Council regarding expenditures from the essential
services transactions (sales) and use tax, and reporting annually to the community on the City’s
use of these tax revenues. (San Luis Obispo Municipal Code §3.15.020)
ARTICLE 1. MEETINGS
1. The REOC shall meet a minimum of four times per year to conduct its business.
2. REOC regular meetings will follow the diagram on the next page and be integrated into
the City’s budget processes for the two-year financial plan, fiscal year-end, and financial
plan supplement. Meeting dates may change from year to year according to the actual
budget schedule.
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Advisory Body Handbook September 21, 2021
City of San Luis Obispo 41 | P a g e
3. Agenda items shall be completed by 9:00 p.m. unless a majority of Commissioners agree
to extend the meeting.
4. Regular meetings shall be held in the Council Hearing Room, City Hall, 990 Palm Street,
San Luis Obispo, California.
5. Special meetings may be called by a majority of the REOC, or by City staff in consultation
with the Chairperson, if additional meetings are necessary to accomplish the purpose and
duties of the Commission.
6. In the event that the REOC desires to hold all or any portion of a regular meeting at a place
other than the Council Hearing Room, then the place of such meeting shall be posted on at
the doors of the Council Hearing Room prior to the time designated for the meeting in
accordance with law.
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Advisory Body Handbook September 21, 2021
City of San Luis Obispo 42 | P a g e
ARTICLE 2. ELECTION OF OFFICERS
1. The Commission shall select a Chairperson and Vice-Chairperson from among its members
to serve for a one-year term beginning with the first meeting following the start of each
fiscal year (July 1).
2. Commissioners shall serve as Chairperson or Vice-Chairperson at the discretion of the
Commission.
3. The Chairperson shall preside at all meetings of the Commission. The Vice-Chairperson is
Chairperson in the absence of the Chairperson or in case of inability of the Chairperson to
act.
ARTICLE 3. CONDUCT OF MEETINGS
1. Commissioners should address questions through the Chairperson.
2. Members of the audience should address Commissioners or other persons present through
the Chairperson.
3. Procedure for reviewing public hearing items:
After roll call the Chairperson shall announce to the public the procedures to be followed
to consider the items listed on the agenda and then proceed as follows:
a. The Chairperson shall introduce the items and ask for oral staff reports, as
appropriate.
b. The staff report previously submitted to the REOC shall be placed into the record
with all communications received regarding the item. Staff reports shall be
submitted for all public hearing items in a form acceptable to the Commission.
c. Members of the public wishing to speak on the topic of the agenda item shall be
invited to make a presentation. Public comment shall be accepted for agenda items
that are listed as presentations, business items, or public hearings.
d. Following public testimony on an agenda item, the public hearing or public
testimony portion of the meeting shall be closed to the public and discussion
confined to members of the Commission; provided that the Commission may
reopen the public hearing or invite additional testimony at any time prior to a
decision on an item on an affirmative vote of the majority of those members present.
e. The Commission, upon formal motion, shall take action on the item or
recommendation.
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Advisory Body Handbook September 21, 2021
City of San Luis Obispo 43 | P a g e
ARTICLE 4. QUORUM
1. A quorum is the majority of the total number of established members of the commission.
2. No action of the Commission shall become effective without receiving the affirmative vote
of a majority of the members present.
ARTICLE 5. VOTING
1. Except as otherwise provided in the San Luis Obispo Municipal Code and state law, no
motion or any other action shall be passed or become effective without receiving the
affirmative vote of at least a majority of members present.
2. Failure to receive such an affirmative vote shall result in failure or denial, as appropriate,
of the motion or other action.
3. Except as allowed under the Political Reform Action of 1974, any member abstaining due
to a declared conflict of interest shall not participate in the discussion of the items or
otherwise influence or attempt to influence in any manner the decision on the item.
4. All members, when present, must vote except when refraining from participating due to
actual or potential conflict of interest.
5. Commissioners not supporting a motion for action shall summarize the reason for their
vote.
ARTICLE 6. PUBLIC RECORDS
1. Records of all public hearings shall be made available to the public in the office of the City
Clerk.
2. Secretary Duties: The secretary shall be a representative of the City Clerk’s Office, and
shall keep minutes of each meeting and shall record the official actions taken. The records
of all proceedings shall be available to the Council and to the public.
ARTICLE 7. ATTENDANCE
1. Any member of the REOC who fails, for any reason, to attend three regular, adjourned
regular, or specially-scheduled meetings, within any 12 month period, shall be reviewed
by the Chairperson for possible referral to the City Council.
ARTICLE 8. TERM LIMITS, FILLING VACANCIES AND REMOVAL OF MEMBERS
1. Terms are for three years.
2. Vacancies shall be filled for unexpired terms. The Council, by majority action, may remove
any Commissioner as provided in the City Charter.
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ARTICLE 9. RULES, REGULATIONS AND PROCEDURES
1. The Commission may adopt rules, regulations and procedures as required for the
transaction of its business. These rules shall become effective upon approval of the
Council.
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Page 14 of 56
Railroad Safety Trail and Bridge
(Taft to Pepper Streets)
The Local Revenue Measure helped fund one of the
highest-priority multi-model transportation projects
which connects Cal Poly to the Downtown Area. The
project was completed in March 2022. SPOTLIGHT PROJECT
ORCUTT TANK FARM ROUNDABOUT
PAGE 7
Learn about the City's milestone project to construct a critical
roundabout at one of the City's major gateways.
HOW DID WE SPEND REVENUES?
PAGE 5
Read about how Local Revenue Measure funds were spent
in 2021-22
ANNUAL COMMUNITY REPORT
Fiscal Year 2021-22
Consistent with City goals, including
climate action, the expansion of the
Railroad Safety Trail from Taft to
Pepper streets provides safer access
for bicyclists and pedestrians while
reducing greenhouse gas emissions.
Page 15 of 56
2
The Local Revenue Measure funds over 35 full-time positions
ranging from Engineering Inspectors to Police Officers. It is also the
primary funding source for most of the City's vehicles and
equipment used to keep the City safe and clean.
WHAT IS THE LOCAL REVENUE MEASURE?
The Local Revenue Measure is a 1.5 percent local sales tax approved
by City voters in November 2020 and went into effect on April 1, 2021. It
replaced the previous .5 percent local sales tax approved by City voters
in November 2006. It helps protect and maintain operating services and
public infrastructure identified by the community such as
community safety, creek protection, addressing homelessness,
keeping public areas safe and clean, retaining local businesses,
youth/senior services, streets, open space/natural areas and other
vital services and facilities.
Page 16 of 56
LOCAL REVENUE MEASURE BALLOT MEASURE (MEASURE G20)3
The Local Revenue Measure funds the City's new Mobile Crisis Unit. The unit provides
support services to anyone in the City and is designed to help prevent and reduce
chronic homelessness. The program provides support to individuals suffering from non-
emergency mental health challenges, drug and alcohol addiction, and chronic
homelessness. The Mobile Crisis Unit pairs a mental health case worker (Scott Giem -
left) with a fire department emergency medical technician (Keanu Morrison - right).
"To protect the City of San Luis Obispo’s financial stability; maintain fire/community safety,
health emergency/disaster preparedness; protect creeks from pollution; address
homelessness; keep public areas clean/ safe; retain local businesses; maintain
youth/senior services, streets, open space/natural areas, and other general services, by
extending voter- approved funding at a 1.5¢ (1.5%) rate until ended by voters. All funds
require audits/ all funds used locally."
Page 17 of 56
REVENUES 4
The Downtown Pavement Improvements project was a
multi-million dollar project that will removed and
replaced asphalt, fixed damaged curbs and gutters,
upgrade ADA ramps, and applied slurry seal and
striping.
The Local Sales Tax revenue totaled $28.8 million in 2021-22, amounting to approximately 27 percent of general fund
revenue. Fiscal Year 2021-22 marked the second year that the City collected additional revenue due to the increase in the tax
rate (Measure G-20), which went into effect on April 1, 2021. The Local Revenue Measure has generated more than $130
million since its original adoption in November 2006.MillionsFISCAL YEAR (JULY 1-JUNE 30)
Increase due to the new tax rate from
Measure G-20 (effective April 1, 2021).
Page 18 of 56
$2.16M
YOUTH/SENIOR SERVICES AND RECREATION FACILITIES
14%
$1.49M
CREEK AND FLOOD PROTECTION7%
$1.42M
ECONOMIC DEVELOPMENT7%
$7.56M
STREET MAINTENANCE AND TRANSPORTATION*36%
$2.88M
COMMUNITY SAFETY
$974,000
SAFE AND CLEAN PUBLIC AREAS5%
$2.03M
OPEN SPACE PRESERVATION
10%
$1.26M
OTHER VITAL SERVICES AND CAPITAL PROJECTS6%
LOCAL REVENUE MEASURE USES IN 2021-22
2021-22 Local Revenue Measure funds were used on the following Council-adopted priorities:
The Local Revenue Measure provides funding to help
acquire and maintain the City's open spaces. Rangers
funded by the measure built the bridge seen here
along a trail in the Miossi Open Space.
5
*Projects listed in the "Street Maintenance and
Transportation" category also include significant
bicycle and pedestrian improvements.
$811,000
ADDRESSING HOMELESSNESS4%
PROTECTING FINANCIAL STABILITY
$329,0002%
10%
Page 19 of 56
LOCAL REVENUE MEASURE USES IN 2021-22 6
Local Revenue Measure uses fall into two categories: operating programs and
capital programs.
Operating Uses: $6.9M // 23%
Capital Uses: $23.6M // 77%
To fund positions that provide community services
Examples of operating expenditures include funding for positions such as police officers,
open space rangers, homelessness response positions, and flood control staff.
To fund construction and investment in equipment
Examples of capital expenditures include construction of major projects like the Orcutt
Tank Farm Roundabout as well as the maintenance of City infrastructure.
The Local Revenue Measure helps fund fire
fuel reduction and flood control efforts. Rangers
and flood control staff are instrumental in
making sure that creeks are clear of debris. The
Measure also plays a major role in helping
maintain the City's vast urban forest.
For every
generated by the Local Revenue
Measure, about
and
$1 of revenue
70¢ is paid
by visitors 30¢
is paid by residents
Page 20 of 56
PROJECT SPOTLIGHT 7
“The Greys in Between”, the permanent 3-legged sculpture at the center of the newly
completed roundabout, was created by artist Anila Quayyum Agha. In exploring the
intersections of race, class, culture, and religion, the piece celebrates minority and
immigrant peoples’ contributions to our society and signifies San Luis Obispo as a
community committed to being a welcoming place for all.
Orcutt Tank Farm Roundabout
The Tank Farm Road and Orcutt Road Roundabout is a critical
transportation infrastructure project identified in the both the
General Plan and Orcutt Area Specific Plan to improve traffic
operations and safety at this high-volume intersection with the
ongoing construction of new housing within the Orcutt Area.
The roundabout addresses ongoing congestion and vehicle queuing
during peak commute periods, as well as provides dedicated
crossings for bicyclists and pedestrians, improving multimodal
connectivity between Islay Park and neighborhoods to the north.
Photo credit: Steven Heraldo Page 21 of 56
PLANNED AND RECENTLY COMPLETED
LOCAL REVENUE MEASURE USES
8
The Local Revenue Measure is a critical revenue source for community investment. The City is committed to completing
projects that maintain infrastructure and support the delivery of essential services to residents and businesses.
Estimated Construction Start Date
Summer 2023
North Chorro Greenway Project
Construction Ongoing
2022-23 Roadway Sealing
Estimated Construction Start Date
Spring 2023
Cheng Park Revitalization
Responding to the damage from the January 2023
storms and preparing for future storm events will be a
top priority for the City over the next several years.
Completed December 2021
Curb Ramps Project
Estimated Construction Start Date
Winter 2023
Mission Plaza Restrooms
and Kiosk Project
Page 22 of 56
Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS
2021-22
(BUDGET)
2021-22
(ACTUAL)
2021-22
(BUDGET&
CARRYOVER)
2021-22
(ACTUAL)
Storm Drain System Replacement
Broad and Leff Culvert Repair
Pismo/Johnson/San Luis Creek Bank Stabilization
Woodbridge Groundwater Runoff Diversion
Creek and Flood Protection (FTE = 6)
Subtotal $1,074,772 $860,765$632,567 $632,567
7,613
822,159
7,612
660,176
235,000 192,977
10,000 0
632,567 632,567
Creek and Flood Protection
9
Open Space/Natural Areas Preservation
and Maintenance
721,610
741,007
$ 1,819,605 $ 1,288,634$ 741,007 $ 741,007
278,597
634,918
48,417
653,003
528,950
166,395 76,619
741,007
Subtotal
Urban Forest Annual Asset Maintenance
Laguna Lake Dredging and Sediment Management
Open Space Acquisition
Open Space Maintenance
Open Space Preservation (FTE = 2)
Addressing Homelessness (1 FTE)
$328,811Protecting Financial Stability (3.5 FTE)$328,811
$810,647 $810,647
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Page 23 of 56
10
Add a subheadingAdd a subheading
1,665,000
36,676
744,775
82,407
57,085
33,686
717,589
Subtotal $ 11,723,238 $ 6,547,841$ 1,016,455 $ 1,016,455
363,773 57,493
Curb Ramps 816,9901,000,000
Street Maintenance and Transportation
CAPITAL PROJECTSOPERATING PROGRAMS
2021-22
(BUDGET)
2021-22
(ACTUAL)
2021-22
(BUDGET&
CARRYOVER)
2021-22
(ACTUAL)
Ped and Bike Pathway Inventory and Pavement Condition
Neighborhood Greenway Plan Implementation ‐ Phase II
South Street Median Landscaping
Avila Ranch ‐ Buckley Extension Class I Bike Lane
Pedestrian Crossing Improvements
2021 Downtown Pavement Improvements Project
Active Transportation Plan Implementation
Monterey at Santa Rosa Paving and Signal Project
Roadway Sealing 2022
Street Reconstruction and Resurfacing - Annual Asset Maint.
Mid-Higuera Bypass
Traffic Signs and Striping Maintenance
California Taft Roundabout
Orcutt/Tank Roundabout Construction
Prado Road Interchange
Prado Road Bridge & Road Widening
Higuera Street Paving
Transportation Safety & Operations
Marsh at Santa Rosa Replacement
Traffic Safety Implementation
Railroad Safety Trail Taft to Pepper
Broad Street Corridor Access Improvements
Neighborhood Traffic Improvements
Street Maintenance and Transportation (FTE = 5.6)
2,573,536
44,243
10,360
34,541
156,706
16,930
5,299
427,780
0
804,280
69,760
43,770
53,700
230,975
10,000
336,223
2,630,095
1,016,4551,016,455
5,402
30,830
35,000
10,662
400,107
179,756
1,000,000
238,160
413,118
110,000
62,919
300,000
1,069,494
500,000
427,780
24,634
59,119
74,250
149,469
156,706
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Page 24 of 56
11
Add body text Add body textAdd body text
100,000
21,368
Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS
2021-22
(BUDGET)
2021-22
(ACTUAL)
2021-22
(BUDGET&
CARRYOVER)
2021-22
(ACTUAL)
Street and Pathway Lighting
Safe and Clean Public Areas
Downtown Safety Enhancements
Sidewalk Annual Asset Maintenance
Mission Plaza Restroom Replacements and Enhancements
Bob Jones Trail and Railroad Safety Trail Solar Lighting
Downtown Cleaning Equipment
Street Lights - Annual Asset Maintenance 73,148
377,435
287,613
400,000
19,395
4,500
0
277,986
92,458
208,632
75,000 0
Safe and Clean Public Areas (FTE = 3)371,021 371,021
Subtotal $ 371,021 $ 371,021 $ 1,334,564 $ 602,971
One of the most notable design features of the
Railroad Safety Trail (Taft to Pepper) project is the
lighting. It has numerous lights which will help keep the
pathway safe and well-lit at all hours of the day.
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Page 25 of 56
12
89,420 35,809
Add a subheading
Community Safety and Emergency
Preparedness
340,000
295,000
262,520
1,703,757
40,000
262,270
225,955
262,520
631,559
39,976
25,000 0
Subtotal $ 2,755,697$ 1,417,636
Fire Hydrant Replacement
IT Replacements - Annual Asset Maintenance Account
Police Station Replacement
Fleet Replacement: Police
Fleet Replacement: Fire
Community Safety Emergency Response Communication Equipment
Fire Station #3 & #4 Remodel Space Study and Design
Community Safety and Emergency Preparedness (FTE = 8)1,417,636 1,417,636
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
CAPITAL PROJECTSOPERATING PROGRAMS
2021-22
(BUDGET)
2021-22
(ACTUAL)
2021-22
(BUDGET&
CARRYOVER)
2021-22
(ACTUAL)
Pictured above is Armando Gutierrez, the City's Safety
and Training Captain - a new position added with the
2021-22 budget. The City's firefighters are trained to
respond to a wide range of public assists from vehicle
accidents to open space rescues.
$ 1,417,636 $ 1,458,088
Page 26 of 56
13
Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS
2021-22
(BUDGET)
2021-22
(ACTUAL)
2021-22
(BUDGET&
CARRYOVER)
2021-22
(ACTUAL)
40,000 28,430
200,000 0
Youth/Senior Services and Recreation
Facilities
220,035 220,035
1,977,135
120,000
1,213,866
26,778
110,000 0
$ 3,996,965 $ 1,817,772$ 341,009 $ 341,009Subtotal
Laguna Lake Golf Course Maintenance
Meadow Park Pathways Refurbishment
Golf Course Pro Shop Flood Damage Repairs
Parks Major Maintenance - Annual Asset Maintenance
Parks and Recreation Master Plan Implementation
Playground Equipment Replacement - Annual Asset Maint.
Youth/Senior Services and Recreation Facilities (FTE = 3.5)341,009 341,009
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Parks and Recreation Interior Office Rehabilitation
North Broad Street Neighborhood Park Construction
Major Facilities Maintenance - Annual Asset Maintenance
150,000 150,000
175,000
1,004,795 178,663
0
Page 27 of 56
14
100,000 20,878
211,000 172,738
Subtotal
Banner Arm - Bench Rests - Signs
Open SLO
Annual Public Art Maintenance and Projects
Neighborhood Greenways Public Art
Downtown Public Art Installations
Mission Plaza Maintenance Improvements
Mission Plaza Arbor Refurbishment
Add a subheadingAdd a subheadingCAPITAL PROJECTSOPERATING PROGRAMS
2021-22
(BUDGET)
2021-22
(ACTUAL)
2021-22
(BUDGET&
CARRYOVER)
2021-22
(ACTUAL)
Economic Development and Business
Retention
200,000 72,515
11,216
92,500
0
62,800
275,000 88,730
$ 1,154,716 $ 417,661$ 998,688 $ 998,688
998,688 998,688
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Downtown Zig‐Zag Lighting
15,000 0
Economic Development and Business Retention
250,000 0
Mission plaza railing was
replaced in 2021-22 as part of
the Mission Plaza Maintenance
Improvements Project.
The "Open SLO" project
continued supporting the
downtown parklet program.
Page 28 of 56
15
9,616
Add a subheadingCAPITAL PROJECTSOPERATING PROGRAMS
2021-22
(BUDGET)
2021-22
(ACTUAL)
2021-22
(BUDGET&
CARRYOVER)
2021-22
(ACTUAL)
$1,975,179 $ 1,003,562
17,000
9,616
279,583
300,000
631,000
17,000
109,577
217,500
68,908
100,000
137,980
500,000
30,053
137,980
412,928
Subtotal
Fleet Replacements Annual Asset Maintenance
Roundabout Public Art Installations
Parking Lot Maintenance - Annual Asset Maintenance
Multi-space On-Street Pay Stations
Fleet Services Vehicle Lift
Capital Projects Engineering Staff (6 FTE)
Multi-site Energy Management
Electric Vehicle Charing Stations
Other Services and Projects
Other Vital Services and Capital Projects
TOTAL LOCAL REVENUE MEASURE USES $25,834,735 $13,997,294$6,912,660 $6,912,660
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
254,819 254,819
$254,819 $254,819
Page 29 of 56
PRIORITIES SET BY THE CITY COUNCIL FOR FY 2020-21 INCLUDE:
17
Add a subheading
16
CITIZENS' REVENUE ENHANCEMENTCITIZENS' REVENUE ENHANCEMENT
OVERSIGHT COMMISSIONOVERSIGHT COMMISSION
Volunteer Residents Serve
on the Commission
The Revenue Enhancement Oversight
Commission (REOC) reviews, reports, and
makes recommendations directly to the
City Council regarding the revenue and
expenditures of the City's general
purpose, half-percent sales tax. The REOC
consists of five members who must be
residents and registered voters of the city.
Jim Hamari- Chair
Keith Dunlop - Vice Chair
Tony Skapinsky - Commissioner
Christopher Ellwood - Commissioner
Anthony Bozzano - Commissioner
Street Maintenance and Transportation
Community Safety
Youth/Senior Services and Recreation Facilities
Open Space Preservation
Economic Development
CITY OF SAN LUIS OBISPOCITY OF SAN LUIS OBISPO
For more information, please visit www.slocity.org/budget
PRIORITIES SET BY THE COUNCIL FOR FY 2021-22
Creek and Flood Protection
Safe and Clean Public Areas
Addressing Homelessness
Protecting Financial Stability
Other Vital Services and Capital Projects
The Local Revenue Measure funded Sinsheimer
Hardscape replacement seen here as well as a
new hydration station (pictured on pg. 15)
Photography by
Kelly Donohue Photography
City of San Luis Obispo
Page 30 of 56
Revenue Enhancement Oversight Commission
Agenda Report
For Agenda of: 9/11/2023
Item Number: 4b
FROM: Natalie Harnett, Principal Budget Analyst
Phone Number: (805) 781-7128
E-mail: nharnett@slocity.org
SUBJECT: FY 2022-23 LOCAL REVENUE MEASURE UNAUDITED YEAR-END
FINANCIALS
RECOMMENDATION
Receive a report and review unaudited revenues and expenditures of the Local
Revenue Measure sales tax revenue for the last fiscal year.
DISCUSSION
Background
One of the roles of the Revenue Enhancement Oversight Commission (REOC) is to
review the 1.5 percent local transaction tax revenues and applicable uses. This purpose
of this report is to provide an unaudited overview of the FY 2022-23 ending position (4th
quarter) for the Local Revenue Measure. A detailed report with audited financials and
project-specific expenditures will be presented to the Council and the Revenue
Enhancement Oversight Commission (REOC) in January 202 4.
Year-End Results
LRM Revenue
During budget development, staff create revenue forecasts using available economic data
in combination with the analysis and forecast from a third-party sales tax consultant.
Subsequently, expenditure budgets are adjusted to the revenue forecast. The FY 2022-
23 revenue budget was adjusted upward at mid-year based on actuals as of December
2022 (see Table 1).
Sales, Transaction, and Use tax revenue exceeded the City’s projections for the year.
This is consistent with trends across the state. Ultimately the City ended the fiscal year in
a slightly stronger fiscal position than assumed at mid-year. The Local Revenue Measure
exceeded original projections by about $3.3 million but was only marginally higher than
the updated projections made in February 2023.
Page 31 of 56
Item 4b
Despite ongoing threats of an economic downturn, sales tax revenue remained incredibly
strong through FY 2022-23. There is evidence of a cooling, but this was programmed into
the budget. Both the Bradley Burns sales tax and the local transaction tax exceeded
projections by about 2%. Measure G-20 saw modest declines in Q3 building materials,
services stations, and new-used vehicles; however, some of this could have been due to
the storms that hit the areas during that time. Although the categorical data has not been
released by the CDFTA, the City did receive its final payment for June 2023 and Q4
results show an overall decrease of 0.2% compared to the previous year.
Table 1 - 2022-23 Local Revenue Measure Variances
a. Original Revenue
Forecast
b. Re-forecasted
Revenue (mid-year) c. Actual Revenue Variance (c-b)
$27,049,000 $30,141,532 $30,405,434 $263,903
LRM Expenditures
Local Revenue Measure projects and services were evaluated using both the LRM
priorities and the Major City Goals established by the City Council to align funding for
projects and services within projected revenues. Certain categories such as Street
Maintenance and Transportation account for the highest percentage of the budget
because of the cost to deliver projects such as the annual street paving project. The
operating budget reflects investment closely aligned with the community forum feedback,
with Addressing Homelessness, Open Space Preservation, and Streets Maintenance
within the top five budget allocations. The table below shows a breakdown of the total
LRM budget allocation, including adjustments approved throughout the year by Council,
by priority. A full breakdown of FY 2022-23 funded projects and services can be found at
here.
Page 32 of 56
Item 4b
Table 2 - FY 2022-23 Local Revenue Measure Expenditures
*Capital expenditures represents the total FY 2022-23 budget allocation. Project balances carry over through the
life of the project.
LRM Ending Position
The table below shows the ending net position of the Local Revenue Measure (LRM).
The balance can be used to provide one-time funding for community services and
infrastructure investments. Given the extraordinary storm damage repairs necessary and
overall project cost escalations, staff will likely return to Council and the REOC with a
recommendation to use any available balance on infrastructure projects.
It is important to note that the actual revenue numbers remain unaudited and are subject
to change slightly.
Table 3 - Local Revenue Measure Unaudited Year End Position
FY 2022-23 Local Revenue Measure Priority Operating
Expenditures
Capital
Expenditures*Total
Address Homelessness 764,069$ -$ 764,069$
Community Safety and Emergency Preparedness 2,102,685$ 2,549,714$ 4,652,399$
Creek and Flood Protection 742,816$ 551,654$ 1,294,470$
Economic Development and Business Retention 757,375$ 117,500$ 874,875$
Open Space/Natural Areas Preservation and Maintenance 709,019$ 730,000$ 1,439,019$
Other Services and Projects 1,165,820$ 1,615,516$ 2,781,336$
Protect Financial Stability 404,558$ -$ 404,558$
Safe and Clean Public Areas 652,300$ 2,710,014$ 3,362,315$
Street Maintenance and Transportation (includes bicycle and
pedestrian improvements) 1,084,129$ 8,647,120$ 9,731,249$
Youth/Senior Services and Recreation Facilities 395,492$ 1,818,897$ 2,214,389$
Allocation to Capital Reserve -$ 3,604,500$ 3,604,500$
Grand Total 8,778,264$ 22,344,915$ 31,123,179$
% of Total 28%72%
1 Beginning Balance 5,696,864$
2 Revenue 30,405,434$
3 Expenditures (31,123,178)$
4 Revenue Over/(under) Expenditures $ (717,744)
5 Ending Fund Balance $ 4,979,120
6 Assigned to Projects 1,217,379$
7 Unassigned LRM Fund Balance $ 3,761,741
Local Revenue Measure Ending Position (UNAUDITED)
Page 33 of 56
Page 34 of 56
Revenue Enhancement Oversight Commission
Agenda Report
For Agenda of: 9/11/2023
Item Number: 5
FROM: Natalie Harnett, Principal Budget Analyst
Phone Number: (805) 781-7128
E-mail: nharnett@slocity.org
SUBJECT: STUDY SESSION: OVERVIEW OF LOCAL REVENUE MEASURE, THE
REVENUE ENHANCEMENT OVERSIGHT COMMISSION (REOC)
BYLAWS AND ADVISORY BODY ROLE
RECOMMENDATION
No action needed on this item
DISCUSSION
On March 30, 2023 Commissioner Bozzano made a motion to formally schedule a study
session to discuss the REOC role and purview during the next regular meeting.
Commissioner Skapinsky seconded the motion.
The purpose of the study session will be to educate commissioners a nd provide an
opportunity for questions and discussion. Staff prepared a presentation (Attachment A)
that provides an overview of:
1. An explanation of Local Revenue Measure (LRM)
2. How LRM fits into the City’s overall budget
3. How LRM is forecasted and the budget is developed
4. The Capital Improvement Plan project prioritization process
5. The development of strategic goals and community outreach
6. History and overview of the REOC
7. The REOC role in education and outreach
8. The REOC role as an advisory body and LRM oversight
9. Overview of the Brown Act
10. Review of the 2023-25 REOC schedule
ATTACHMENTS
A - Staff Presentation for REOC Study Session
Page 35 of 56
Page 36 of 56
Citizens’ Revenue Enhancement
Oversight Commission (REOC)
Study Session: Commission Overview, History and Purview
September 11, 2023
Page 37 of 56
Item #5 - REOC Study Session
Purpose: Review the history and purpose of the Local Revenue Measure and the purview of the
REOC. The study session should serve as an opportunity for open discussion between the
commissioners and Council liaisons.
1.Presentation by Staff (30-45 mins)
2.Public Comment
3.Questions/Discussion (15-30 min) – Led by Council Liaisons
Action items: None
Page 38 of 56
What is the Local Revenue Measure (LRM)
How does LRM fit into the City’s total budget
Mechanics of the revenue and how the budget is developed
How CIP projects are prioritized
Strategic goals developed through community outreach
History and overview of REOC
REOC role: education and outreach
REOC role: oversight and advisory
Importance of the REOC
REOC RoleThe Local
Revenue
Measure
Study Session Outline
Overview of Brown Act
2023-25 Schedule
Page 39 of 56
What is the Local Revenue Measure?
2006
•Local tax approved by voters – 0.5% (Measure Y)
2014
•Renewed local tax – 0.5% (Measure G)
2020
•Renewed local tax and changed to 1.5% (Measure G-20)
General purpose transaction and use tax; however, every eight years, the city will incorporate a long-
term priority setting exercise into the financial plan development process to determine the long-term
community services and investment priorities for the use of local revenue measure funds.
The estimated revenue and proposed use of funds generated by this measure shall be an integral part
of the city’s budget and goal-setting process, and significant opportunities will be provided for
meaningful participation by citizens in determining priority uses of these funds.
Page 40 of 56
Understanding Local Sales Tax
Bradley-Burns Sales and Use Tax (1%)
Set by State
Sales tax from the Bradley-Burns levy is allocated back to the jurisdiction where a sale was negotiated
or the order was taken. It is distributed to local agencies to support local government needs.
Local Revenue Measure Transaction and Use Tax (1.5%)
Set by City of San Luis Obispo voters
The transactions and use tax is imposed on the same goods and merchandise as the local sales and
use tax. However, where the Bradley-Burns Sales and Use Tax is generally allocated to the jurisdiction
where the sale is negotiated, or the order is taken, the transactions and use tax is allocated to the district
where the goods are delivered or placed into use.
6%.25%1%1.5%8.75%
State tax
Bradley Burns –
County
Transportation Fund
Bradley Burns
– Local portion
LRM Total
City of SLO Revenue
Sales and Use Tax
Reference Manual
Page 41 of 56
The City Budget and Services
The Local Revenue Measure is a
sub-fund of the General Fund and
it’s #1 source of revenue, $30
million
General Fund
$114,317
48%
Water Fund
$32,040
13%
Sewer Fund
$23,028
10%
Parking Fund
$57,699
24%
Transit Fund
$10,302
4%
Tourism Assessment
$2,129
1%Downtown Assessment
$275
<1%
Total: $239,791
Total FY 23-24 Budget (in thousands)*
* Excludes transfers in/out and some one-time expenditures
Page 42 of 56
The General Fund Expenditure Budget
*The City's Police Department provides more than
traditional public safety services associated with
sworn patrol officers. It also provides homelessness
services, downtown services, a school resource
officer, and pro-active outreach efforts. In fact, over
25% of the department's staffing costs are for
civilian (or non-sworn) staff.
Page 43 of 56
General Fund Revenue Budget
Local Revenue
Measure - $30 M
27%
Bradley Burns
General Sales
Tax - $23 M
21%Property Tax -
$22 M
20%
Transient
Occupancy Tax
- $11 M
9%
Other Taxes -
$12 M
11%
Fees and other
revenue - $14 M
12%
Total: $112 million
Page 44 of 56
9
Page 45 of 56
LRM Budget Development
Draft
budget
presented
to Council
Departments prepare “base budgets”
Revenue projections
are prepared
Emergent needs
(ex: storm)
Community priorities
Determine which services
and projects most closely
align with LRM or are
currently funded through
LRM.
Bring recommendation on
LRM uses to REOC
Note: Because most annual revenue increases are due to LRM
increases; expenditure budget changes are often recommended to be
funded through this sourceConsiderationsCapital Improvement
Plan (next slide)
A balancing act
Historically, LRM has been allocated about 75% towards capital
expenditures and 25% towards operating expenditures.
Page 46 of 56
Logistics of CIP Development
CIP Project List Developed
Subject matter experts develop estimated scope, timeline, and budget
Projects reviewed by CIP review team, Financial Plan Steering Committee
Projects Prioritized (next slide)
Projects selected based on available funding
Considerations:
Construction environment
Supply chain issues, cost escalation
Ongoing impact on operations
Feasibility of delivering projects
External funding matches
Things we have control and don’t have control over
How is the project list developed?
Council
Department staff
Community members
Based on replacement and maintenance policies
Development agreements
Consistency with Master Plans
Page 47 of 56
Capital Project
Prioritization
LRM funds about 78% of the
City’s total Capital Budget.
Page 48 of 56
Revenue Enhancement Oversight Commission
Municipal Code 2.14
•REOC was established in 2014 to help provide transparency and maximize city accountability
•Advisory commission to City Council
•Five members who are residents of the City
•Member appointment: three years
Meets a minimum of four times per year to perform duties:
A. Conduct public hearings
B. Annual Community Report
C. Review Annual Audit
D. Annual Citizen Oversight Meeting
E. Budget Recommendations (advisory role)
F. Outreach and Education
G. Long-term Community Investment Priorities
Page 49 of 56
REOC: Education and Outreach Role
The REOC and annual report subcommittee members should
help guide the development of annual reports:
•Which projects/programs are top of mind for the community?
•Which projects/programs should be highlighted for the
community?
•How should expenditures be categorized?
•What is the best way to communicate with and educate the
community?
The REOC shall be authorized to perform outreach and educational activities
so that residents and community members are informed about the costs and
benefits associated with the collection and use of revenue generated by the
community services and investment measure.
Page 50 of 56
REOC: Oversight and Advisory Role
The REOC shall meet for the purpose of making recommendations to the city council
regarding the uses of revenue generated by the community services and investment
measure. The REOC shall take into consideration the input provided by residents and
community members during the annual citizen oversight meeting, the purpose of the
community services and investment measure, the major city goals established by the city
council, and the amount of revenue available from past fiscal years and projected to be
available during the next fiscal year, in making its budget recommendations to the council.
As an oversight commission, the advisory body can make recommendations to Council
regarding the use of the measure. Are the proposed uses in line with:
•The language and purpose of the measure?
•The input provided by residents?
•Major City Goals?
Page 51 of 56
Input provided by
community members
during the annual citizen
oversight meeting
The purpose of the
community services and
investment measure
The major city goals
established by the city
council
Is this a mission
critical or health
& safety related
request?
(ex: storm damage)
Are there other ways
to fund it?
Appropriate use of
Local Revenue
Measure*
Evaluating Budget Recommendations
Is the recommendation
directly in line with:
No
No
Appropriate use
of Local
Revenue
Measure
Yes
Consider all factors
Holistic impact on organization
and community
Current community needs
Long term impact
What progress has already
been made on the
project/program? (ex: have we
already paid for design
services?)
Construction environment
Alignment with other strategic
plans and objectives
Make best recommendation
to Council
*LRM is a “general purpose” tax: A general tax is a tax (1) levied by a general purpose government—city or county—and (2)
expended, at the discretion of the local government's governing body, on any programs or services. All non–property taxes which
cities and counties are authorized to levy may be imposed as general taxes.
Yes
Page 52 of 56
The importance of
the REOC and the
City’s financial
oversight
City Financial Oversight
Budget and fiscal policies
The General Plan
Various Approved Strategic Plans
Planning Commission Review
Purchasing Policies
REOC Advisory
Established replacement schedules
Annual financial audit
Community Input/ oversight
Quarterly reports
Page 53 of 56
Quick Overview: the Brown Act
1.Meet within the jurisdictional limits of the City.
2.Post the agenda at least 72 hours before a regular meeting containing a brief general
description of each item of business to be transacted or discussed.
3.Hold open and public meetings.
4.Give notice of the meetings to any requesting party at least 24 hours prior to the meeting.
5.Provide in bylaws or rules for time and place of regular meetings, if regular meetings are to
be held.
6.Prohibits action or discussion of items not on the posted agenda
7.Public Comment only allowed at certain periods and for limited amount of time.
8.Serial meetings are strictly prohibited.
9.Except as allowed under the Political Reform Action of 1974, any member abstaining due to
a declared conflict of interest shall not participate in the discussion of the items or otherwise
influence or attempt to influence in any manner the decision on the item.
Page 54 of 56
2023-25 Financial Plan: REOC Schedule
September 2023
•Elect Chair/Vice Chair
•Unaudited year end
•REOC Overview
December 2023
•Review year-to-date actuals
•Community report preparation
February 2024
•Community Report/Citizen Oversight Meeting
April 2024
•Supplemental Budget/Carryover Recommendations
October 2024
•Unaudited year end
November 2024
•Goal Setting
•Community report preparation
January 2025
•Community Report
•Citizen Oversight Meeting (joint
meeting with Council)
March 2025
•Budget Recommendations
FY 23-24
FY 24-25
Page 55 of 56
Questions and Discussion led by
Council Liaisons
Page 56 of 56