HomeMy WebLinkAbout11/14/2023 Item 6a, Jackson - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 14, 2023
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6A – FISCAL YEAR 2023-24 1ST QUARTER BUDGET REVIEW
Staff received the following questions, regarding use of economic development funds in
the FY 2023-24 First Quarter Budget Review. The questions are below with staff’s
response shown in italics:
1) There was originally $2,000,000 set aside from LRM back in 2020 for
Economic Development. However, that funding was never used as planned,
except for a portion of it. So, now, we have the following remaining:
How did we get from the $2,000,000 originally set aside from the Local
Revenue Measure to the $1.416,441 noted as the starting point for this table
above?
Response: The first $300,000 was used for TI permits through the TIPP-Fast 2.0
permit program in FY 2020-21 ($50,000) and FY 2021-22 ($250,000). The
remainder was allocated in FY 2022-23, as per the below table.
Fiscal Year 2023-24 1st Quarter Budget Review Page 2
2) How was the $792,000 arrived upon for FY 2023-24 and FY 2024-25?
Response: The funding was allocated as one time funding for various Economic
Development Programs as outlined in the following table from the 2023-25
Financial Plan:
3) What is the proposed $25K targeted for (in addition to the $125K for a
doubling of the buy local bonus program)?
Response: The additional $25,000 in funding is being requested to provide
expanded support for activations, promotions, and other community benefit
programs to support economic development during the traditionally slow season
in February, March and April of 2024.
4) Why not allocate the other $474,441, rather than continue to carry it over for
additional years?
Response: The intention of staff is to keep this as unallocated fund balance in order
to address future economic development related issues as they arise at which
point staff will bring the recommendations to the City Council for direction and
approval. Should Council wish to appropriate these funds to a specific economic
development program or project staff would recommend that to occur as of the
Mid-Year Budget update on February 6, 2024.
Fiscal Year 2023-24 1st Quarter Budget Review Page 3
5) In December 2020 Council allocated $3.4 million of FY 2018-19 General Fund
undesignated fund balance to economic development efforts and homeless
services. Can a portion of the remaining funding be used for homeless
services?
Response: The $3.4 million was allocated as shown in the table below, with
$300,000 of the total amount identified for homeless services. The $300,000 for
homeless services has been expended, with the remaining balance available for
economic development activities, per Council’s direction. The recommendation
tonight relates only to the $2,000,000 that was initially allocated for tenant
improvement grants and subsequently held for economic development efforts.
Use Amount
Create grant funding opportunities for tenant improvements (TIs) $2,000,000
Expand the SLO City small business relief grant program $500,000
Increase efforts to support downtown vitality $425,000
Implement an economic development shop local incentive $200,000
Homeless services support and coordination $300,000
Total $3,425,000