HomeMy WebLinkAboutItem 6a. FY 2023-24 Mid-Year Budget Review Item 6a
Department: Finance
Cost Center: 2002
For Agenda of: 2/6/2024
Placement: Business
Estimated Time: 90 minutes
FROM: Emily Jackson, Finance Director
Prepared By: Natalie Harnett, Policy and Project Manager
Riley Kuhn, Principal Budget Analyst
SUBJECT: FISCAL YEAR 2023-24 MID-YEAR BUDGET REVIEW
RECOMMENDATION
1. Receive and discuss the Mid-Year Budget report based on revised projections for all
major funds at the mid-point of the 2023-24 fiscal year; and
2. Adopt a Draft Resolution entitled, “A Resolution of the Council of the City of San Luis
Obispo, California, approving amendments to the adopted 2023 -24 Budget
Appropriations” and approve the allocations as stated in the Mid -Year Budget Report.
POLICY CONTEXT
The City’s budget policies require that the City Council review the City’s budget and
financial condition at least every six months. Section 804 of the Municipal Code, at any
meeting after the adoption of the budget, the Council may amend or supple ment the
budget by motion adopted by a majority vote of the Council.
The mid-year review is part of the ongoing quarterly reporting process and fulfills that
purpose. The review allows the Council to adjust revenue and expenditure assumptions
should the need arise. The accompanying Mid-Year Budget report for 2023-24 provides
a comprehensive overview of the City’s financial condition half -way through the fiscal year
and summarizes current financial trends since the adoption of the 2023-25 Financial Plan
in June 2023.
DISCUSSION
Mid-Year Report Organization
The report’s focus is on the General Fund and each of the City’s enterprise funds. The
mid-year budget report also provides an update on departmental performance measures,
work programs, the Capital Improvement Plan, and Major City Goals. The report (included
as Attachment A) includes the following sections:
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Item 6a
Section A – General Fund Summary: This section provides a narrative overview of the
City’s current General Fund financial condition and current revenue and expenditure
trends as of December 31, 2023. In summary, some revenues are exceeding projections
and some have been adjusted upward accordingly. Expenditures are on track with where
they should be at this point in the year at both the department and category levels. The
revised five-year forecast and narrative about the changes in assumptions is also
included. Based on the current assumptions, there are imbalances in the outer years of
the forecast. Staff is working on a more comprehensive revision to the forecast which will
be presented with the 2024-25 Supplemental Budget. The report also provides a storm
expenditure update, consistent with prior budget updates.
Section B –Mid-Year Recommendations: This section outlines the proposed mid-year
expenditure budget changes as well as allocations of the FY 2022-23 unassigned fund
balance. The budget changes address mission critical needs and no new programs or
services are being recommended. The recommend ations also include an additional
discretionary payment (ADP) to CalPERs.
Section C – Enterprise Fund Summary: This section provides a narrative update of the
City’s enterprise funds’ financial conditions, including any recommended budget changes.
Year-to-date expenditures and revenues are on track for all funds. Revised long -term
forecasts are included.
Section D – Department Performance Measures and Work Program Updates: This
section provides an evaluation on the performance measures and an update on core
objectives of each operating program. All the 74 total operating programs manage
workload within budget and meet core objectives.
Section E – Capital Improvement Plan (CIP) Update: This section provides an update
on active and ongoing CIP projects.
Section F – Major City Goal Update: This section provides an update on Major City
Goal tasks that were either scheduled for completion in the first two quarters of fiscal year
2023-24 or are listed as “ongoing”. Several tasks were delayed, but most were completed
or are scheduled to be completed before year end.
Appendix A – Detailed Financials: This section provides a closer look at year-to-date
actuals for the major funds and the recommended revenue budget adjustments.
Preferential Parking District Program
On July 11, 2023, Council approved the temporary deferral of the Preferential Parking
District Program with a plan that staff come back to Council in the Spring of 2024 with a
public engagement and outreach plan and study session, with the goal to adopt a revised
program by Fall 2024. Staffing resources within the Parking Program have been strained
due to the increased priority and condensed schedule of the Parking Rate Study occurring
in the Winter/Spring of 2024, as well as the current vacancy of the Parking Program
Manager, and a planned leave of the Mobility Services Deputy Director. In light of that,
staff recommend shifting this study session to late 2024 or early in 2025 with
implementation of changes to happen in mid-2025.
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Item 6a
Public Engagement
Public comment on the item can be provided to the City Council through written
correspondence prior to the meeting and through public testimony at the meeting. The
Mid-Year Report will also be posted on the City’s website for public review.
CONCURRENCE
The City’s internal Financial Plan Steering Committee has met on multiple occasions and
concurs with the recommendations included in this report.
The City’s Revenue Enhancement Oversight Committee (REOC) met on January 25,
2024 to review the proposed uses of Local Revenue Measure (LRM) funding. The REOC
supports the proposed budget allocations as they are in line with the LRM priorities .
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under CEQA
Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Table 1: FY 2023-24 Mid-Year Revenue Budget Changes
Fund Initial Budget Revised Budget Variance
101-General Fund $80,967,960 $83,508,771 $2,540,810
601-Water Fund $28,225,893 $28,643,350 $417,457
602-Sewer Fund $52,589,691 $47,536,432 $(5,053,260)
611-Parking Fund $57,203,324 $56,700,994 $(502,330)
Grand Total $218,986,869 $216,389,546 $(2,597,323)
Table 2: FY 2023-24 Mid-Year Expenditure Budget Appropriations (One-time)
General Fund $ 6,471,095
Local Revenue Measure $ 3,872,937
Capital Reserve $ 1,860,000
IT Replacement Fund $ 33,200
Parking Fund $ 287,336
Sewer Fund $ 89,550
Water Fund $ 404,968
Transit Fund $ (90,178)1
Completed Projects Reallocation or Transfers2 $ 680,000
1 Negative value indicating this is an appropriation of budget back to fund balance.
2 This is not a new appropriation, rather a reallocation of funds. See Attachment A – Section B for detail.
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Item 6a
Total All Funds $ 12,928,908
Table 3: Recommended FY 2023-24 Cal PERS ADP3
Fund ADP Amount
General Fund $ 2,000,000
Water $ 164,840
Sewer $ 169,419
Parking $ 61,003
Transit $ 12,555
Whale Rock $ 21,417
TBID $ 7,976
Total All Funds $ 2,437,211
ALTERNATIVES
The Council could direct staff to not implement the proposed budget change
recommendations. Should the adjustments not be approved, the budget will remain
unchanged at the adopted budget levels. Staff does not recommend an unchanged
budget due changing needs of the community and the City organization.
ATTACHMENTS
A - FY 2023-24 Mid-Year Budget Report
B - Draft Resolution approving an amendment to the 2023 -24 Budget Allocation
3 Payment to be made in April 2024
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Mid-Year Budget Review
FISCAL YEAR 2023-24
The City’s Budget and Fiscal Policies (Financial Plan Purpose and Organization, G – Mid-Year Budget
Reviews) call for a formal financial status report to the City Council based on the first six months of each
fiscal year. The Mid-Year Budget Review fulfills this requirement and allows the Council to take a broader
look at the City’s financial picture and progress on Major City Goals or strategic initiatives shortly after the
mid-point of the fiscal year. This report focuses on the current fiscal year and provides an analysis of
adopted budget revenue and expenditure appropriations. It also outlines the achievements and the
potential challenges for each department and the City organization as a whole and provides an update on
adopted Major City Goals. Based on the review and accompanying analysis, the City remains financially
sound with most revenues tracking ahead of budget and operating program expenditures remaining
within budgeted allocations.
Table of Contents
Section A: GENERAL FUND SUMMARY ......................................................................................................... 2
A1. Revenue .......................................................................................................................................... 2
A2. Expenditures ................................................................................................................................... 5
Revised General Fund Long Term Forecast........................................................................................... 7
Section B: Mid-Year Expenditure Budget Changes ..................................................................................... 11
Section C. Enterprise Funds ........................................................................................................................ 19
C1: WATER FUND .................................................................................................................................... 19
C2: SEWER FUND ..................................................................................................................................... 24
C3: PARKING FUND ................................................................................................................................. 28
C4: TRANSIT FUND .................................................................................................................................. 32
Section D: Department Performance Measure and Work Program Updates ............................................ 35
Section E: CIP Update .................................................................................................................................. 78
Section F: Major City Goal Update .............................................................................................................. 80
Appendix A – Detailed Financials ................................................................................................................ 89
Budget Report Pg. 1 Page 89 of 241
General Fund Summary
Section A: GENERAL FUND SUMMARY
A1. Revenue
The table below shows the updated revenue forecast for the General Fund (all revenue consolidated).
Detailed year-to-date actuals and mid-year changes by revenue type can be found in Appendix A.
Table 1 - General Fund Revenue
Sales Tax revenue is on track with its budget for the year; however only reflects five months of revenue
and excludes the “clean-up” payment for Q4 (calendar year) which can impact the overall numbers. The
state as a whole experienced a decline of 1.5% in year over year sales tax in the first quarter. The County
of San Luis Obispo outperformed the State and was flat and the City of San Luis Obispo outperformed all
other cities in the county. Combined sales tax revenue from Bradley Burns and the Local Revenue Measure
was up 1.7% from the same quarter last year. These trends are encouraging and can be partially attributed
to new auto dealers and growth in the restaurants and hotels category.
As we look towards Q4 data, anecdotally, local businesses have shared that they were very busy over the
holiday shopping period. Even as inflation and high interest rates have squeezed budgets, a record 200
million shoppers turned out nationally between Black Friday and Cyber Monday, according to the National
General Fund Revenue FY 2022-23 Budget Actuals % Received Midyear
Revised Budget
Total Midyear
Changes
1 Tax and Franchise Revenue 102,133,765$ 100,527,765$ 44,010,515$ 44% 102,210,442$ 1,682,677$
2 Sales Tax (Bradley Burns)21,865,468 22,578,995 8,994,782 40% 22,578,995 -
3 Local Revenue Measure G20*30,508,731 30,262,098 12,409,186 41% 30,262,098 -
4 Safety Prop 172 544,521 498,988 264,510 53% 550,000 51,012
5 Property Tax 22,216,031 21,999,786 9,799,735 45% 22,863,770 863,985
6 Transient Occupancy Tax 11,037,037 10,704,000 4,910,337 46% 10,704,000 -
7 Utility User Tax 6,904,194 5,710,320 2,334,838 41% 6,332,000 621,680
8 Business Tax 3,281,010 3,252,293 2,976,154 92% 3,252,293 -
9 Franchise Fees 2,349,603 1,854,000 680,073 37% 2,000,000 146,000
10 Gas Tax*1,239,701 1,389,292 700,591 50% 1,389,292 -
11 Gas Tax (SB1)*1,059,724 1,177,994 483,061 41% 1,177,994 -
12 Cannabis Tax 1,127,744 1,100,000 457,248 42% 1,100,000 -
-
13 Service Fees and Other Revenue 15,356,185$ 13,269,580$ 8,433,108$ 64% 14,127,713$ 858,134$
14 Development Review 6,424,716 6,275,536 3,165,789 50% 6,275,536 -
15 Fire 1,612,981 1,577,836 695,328 44% 1,647,854 70,018
16 Parks & Recreation 1,813,831 2,021,599 981,734 49% 2,025,958 4,359
17 Police 763,511 689,420 381,581 55% 745,003 55,583
18 Business Licenses (Incl Cannabis 669,968 666,600 673,764 101% 694,774 28,174
19 Other Revenue 2,662,834 1,032,771 1,293,649 125% 1,732,771 700,000
20 Grants & Subventions 1,408,344 1,005,817 1,241,264 123% 1,005,817 -
21 Grand Total 117,489,950$ 113,797,345$ 52,443,623$ 46% 116,338,155$ 2,540,810$
FY 2023-24
How to read the budget tables in this report
Budget: Adopted budget plus any encumbrances from prior year(s) or approved budget adjustments made throughout
the year.
Actual: Actual expenditures plus any encumbrances or obligated funds as of December 31, 2023.
Budget Report Pg. 2 Page 90 of 241
General Fund Summary
Retail Federation. This, in combination with a so far mild winter season, should help keep sales tax
revenue stable through the beginning of 2024.
Table 2- Year-over-year Sales Tax Revenue (Bradley Burns) for Calendar Year Q3 (July-Sept)
Table 3 - Year-over-year Sales Tax Revenue (Local Revenue Measure G-20) for Calendar Year Q3 (July-Sept)
Property Tax forecasts have been increased by about $800,000 to reflect the latest forecast (October
2023) from the County Assessor’s Office.
Transient Occupancy Tax (TOT) revenue hit a record high in FY 2022-23; however, we have seen the
monthly amounts in FY 2023-24 average about 3% lower than last year. Staff anticipated this cooling and
expects this trend to continue through the rest of the year. Despite being lower than last year, the revenue
is still on track to meet budget projections.
Utility Users Tax (UUT) revenue budget was increased to a conservative projection based on year-to-date
revenue trends and last years’ receipts. Over the last several years, this revenue has been volatile. Last
year, the City hit record high UUT revenues largely due to rate increases across all utilities. Electricity,
water, sewer, and telecommunications revenue is tracking almost the same as or slightly higher than last
year; however, UUT revenue from natural gas is down about 15% because of fluctuation in rates based on
Budget Report Pg. 3 Page 91 of 241
General Fund Summary
supply and demand. Given the relatively mild winter and lower rates, this trend is projected to continue
through the remainder of the fiscal year.
Franchise Fee revenue budget was increased to a conservative projection based on year-to-date trends
and last years’ receipts. Like UUT revenue, franchise fee revenue was particularly high last fiscal year
because the franchise agreements are based on the utility providers’ gross receipts, which spiked in FY
2022-23 due to rate increases. Trends are showing that this is slowing down, particularly in the natural
gas sector which explain a lower budget than last year.
Business Tax should all be collected at this point, but there are several delinquent businesses that once
remitted should bring the actuals up to the budgeted amount. 430 businesses will be sent a second
citation that costs $200. The citations will be sent out January 24th. If still unpaid, a third citation of $500
will be sent out in the middle of February.
Cannabis Tax revenue is on track with projections.
Gas Tax and SB1 are on track with projections.
Fees for Service have been marginally adjusted to account for actual year-to-date revenue or trends
identified over the last six months. Despite some decreased revenue projections for certain fees, a
projected increase in other free revenue results in a net neutral impact on the general fund. Specific
revenue budget changes can be found in Appendix A.
Other Revenue The major adjustment in “other revenue” is a true-up in the city’s projected interest
earnings or Fair Market Value (FMV) adjustments based on the year-to-date actuals. Interest earnings and
FMV adjustments swing between fiscal years based on the market and are difficult to forecast because
investment returns are impacted by market, bond, and other geo-economic factors. The revenue budget
is being increased conservatively to reflect the current interest rate environment.
Grants and Subventions are at 123% received because of unbudgeted Mutual Aid Reimbursements that
the City receives for sending resources to help other agencies. This revenue helps offset unbudgeted
expenditures associated with providing mutual aid to other agencies (staffing, overtime, fuel, etc.)
Development Services Designation
In 2014, the City Council adopted Resolution No. 10539 forming the Development Services Designation
Fund. It authorized the City Manager to approve the appropriation and carryover of up to 75 percent of
the over-realized development services revenue to cover the additional funds needed for development
projects. This policy can be found in the 2021-23 Financial Plan Development Services Revenue policy
(Policy D of the Financial Reporting and Budget Administration section).
While the Designation policy was removed with adoption of the 2023-25 Financial Plan, there was a fund
balance of $464,136 at the end of FY 2022-23. The intended purpose of those funds is the timely
processing of development permit applications. In September 2023, a City Manager Report authorized
$250,000 of the Designation Fund's remaining balance to be transferred to the Community Development
Department budget, with $200,000 to Engineering (4004) and $50,000 to Planning (4003) for consultant
services. At the beginning of the fiscal year, staffing was challenging in both Planning and Engineering
Development resulting in the contracting of consultants to manage and keep up with workload demands.
As the remaining balance of the designation fund continues to support these efforts through the
remainder of the Financial Plan, no revenue will be added to the Development Services Designation. A
Budget Report Pg. 4 Page 92 of 241
General Fund Summary
balance of $214,136 remains in the assigned designation account for use on the intended purpose;
however, once drawn down, the account will be eliminated. Based on the FY 2022-23 audited financials
and usage during the current fiscal year, the following table shows the current balance of the development
services designation:
Table 4- Development Services Designation
Development Services Designation
23-24 Beginning Balance $ 464,136
Engineering Development Consultants ($200,000)
Planning Consultants ($50,000)
Current Balance $ 214,136
A2. Expenditures
Table 5- General Fund Operating Expenditures by Department
Table 6 - General Fund Operating Expenditures by Type
General Fund Expenditures by
Department
FY 2022-23
Actual Budget Year-to-date
Actual % Expended
1 Internal Services 17,815,915 19,996,243 10,558,314 53%
2 Admin/IT 11,500,788 12,184,186 6,782,052 56%
3 City Attorney 1,424,496 1,668,051 972,240 58%
4 Finance 2,378,451 2,485,965 1,345,715 54%
5 Human Resources 2,126,740 2,233,158 1,239,827 56%
6 Non-Dept/Support Services 385,440 1,424,883 218,480 15%
7 Community Services 30,207,250 33,727,885 18,495,344 55%
8 CSG Admin 703,556 830,784 498,044 60%
9 Community Development Departm 7,439,031 8,807,387 4,510,454 51%
10 Parks & Recreation 5,092,322 5,706,488 2,761,044 48%
11 Public Works 16,710,736 17,918,390 10,458,882 58%
12 Utilities 261,605 464,836 266,919 57%
13 Public Safety 36,827,297 37,571,537 22,327,530 59%
14 Police 21,430,400 22,278,369 13,262,834 60%
15 Fire 15,396,897 15,293,168 9,064,696 59%
16 Total 84,850,462$ 91,295,664$ 51,381,188$ 56%
FY 2023-24
General Fund Expenditures by
Department
FY 2022-23
Actual Budget Year-to-date
Actual % Expended
1 Salaries 42,285,999 46,490,831 21,187,413 46%
2 Retirement/Benefits 9,340,941 11,508,563 5,438,573 47%
3 Contract Services 11,641,737 13,581,934 9,190,424 68%
4 Other Operating Expenditures 4,618,922 5,317,520 3,077,836 58%
5 PERS Unfunded Liability 13,916,694 11,132,870 10,998,102 99%
6 Utilities 3,046,170 3,263,947 1,488,839 46%
7 Total 84,850,462$ 91,295,664$ 51,381,188$ 56%
Budget Report Pg. 5 Page 93 of 241
General Fund Summary
At Mid-Year, departmental budgets should typically be about 50% expended, though this can vary for
departments that budget for significant non-salary expenditures that do not always follow even
expenditure patterns throughout the year such as fiscal year contracts that cover a full year that are
entered into in early July. Overall, the General Fund is on track with its expenditure budgets at both the
department and the category level.
Storm Update
As noted in prior budget reports, the winter storms in January and March 2023 caused significant damage
to City infrastructure and resulted in emergency declarations at the Federal and State level, in addition to
the Emergency Services Director’ s local emergency proclamation. The City Council authorized use of up
to $9 million from the City’s operating reserve in FY 2022-23 and FY 2023-24 to address unbudgeted storm
costs and with adoption of the 20-23-25 Financial Plan, the City Council also approved allocation of $2.75
million in the CIP to fund projects to repair storm damages and mitigate against future damage. The
Federal and State declarations enable the City eligible to seek reimbursement for certain storm related
costs. 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. The FEMA
reimbursement process has moved slowly, due to turnover in the FEMA Program Delivery Managers
assigned to assist local agencies in submitting projects for reimbursement and a lack of clarity about the
information required in order to submit projects. Based upon information provided by EY (the consultant
hired to provide disaster recovery technical assistance), staff expects that reimbursement will be received
approximately 12 months following formal submittal of projects to FEMA. The timing of reimbursement
is being closely tracked as the City’s ability to pay back the operating reserve and fund future storm-
related projects is dependent on receiving reimbursement for incurred storm costs.
The City has expended approximately $10.34 million on storm response to date, including debris removal,
emergency protective measures, and projects to make permanent repairs to damaged facilities. As noted
in prior updates, storm related costs continue to shift as projects are scoped and designed. Currently, the
total storm costs are estimated at $35.6 million, consistent with what was reported in the First Quarter
Financial Report. Total costs reflect efforts to not only repair storm damage, but to mitigate against future
damage brought on by a potential El Niño year or subsequent storm events. In order to move quickly to
address storm damages, staff is using streamlined procurement processes, including the authorization of
construction contracts and change orders by the City Manager where necessary and allowable to expedite
work in order to protect community health and safety. Staff recently completed the project to repair and
stabilize the creek bank at San Luis Drive—one of the highest priorities and most costly projects related
to the storms. Staff continue to work to prioritize the repairs and identify which projects will be eligible
for the highest reimbursement.
Inflation
In recent years, the City (as well as most other local agencies) has grappled with the effects of inflation,
particularly as it pertains to construction bid prices. The Consumer Price Index (CPI) serves as a key
indicator, and a striking comparison between the 2019 CPI at 2.3 percent and the 2023 CPI at 5.8 percent
highlights the significant increase in costs. The City Council is acutely aware that City staff is diligently
navigating economic uncertainties and contending with substantial cost escalation. This escalation has
had a profound impact on the overall expenses associated with maintaining existing levels of service.
Furthermore, the surge in construction prices has posed challenges to the City's ability to fund both
ongoing projects and incorporate new initiatives into the Capital Improvement Plan. The table below
illustrating comparable bid prices in 2019 versus 2023, along with the corresponding escalation,
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Mid-Year Expenditure Budget Changes
underscores the tangible impact of inflation on the construction landscape within the city. This awareness
emphasizes the need for strategic planning and resource allocation to address these economic challenges
effectively.
Table 7 - Impacts of Inflation
Cost in 2019 Cost in 2023 Increase Variance %
Dozen Eggs 1 $1.54 $2.51 $0.97 +63.3%
Silt Removal (CY) $94.74 $116.00 $21.26 +22%
Hot mix 2 (AC ) per TON $114.75 $161 $46.25 +40%
PCC 3 Sidewalk (SF) $19.00 $30.00 $11.00 +58%
Adjust Utility Collars to grade (EACH) $1,900 $2,965.00 $1,065.00 +56%
The Council and staff will need to be cautious and focused on core commitments towards the City’s capital
program. Any new projects or shifting of capital costs to the General Fund may have a significant impact
on the delivery of planned improvements. Staff are recommending allocating unassigned fund balance
Infrastructure Investment Fund to help the City bridge funding gaps for some major projects coming down
the line.
A3.
Revised General Fund Long Term Forecast
The long-term forecast is an essential planning tool for the City and its ongoing service delivery. While the
City adopts a two-year Financial Plan that must be balanced, the outer years of the forecast are presented
to show the City’s financial condition and availability of resources into the future. The forecast is updated
every six months which gives staff the opportunity to alert Council of looming imbalances and strategize
proper actions to be taken.
Assumptions and Changes to Forecast
To avoid an overhaul of the budget, staff have updated only items that need to be adjusted based on
significant new information or variances. In this case, the revenue forecasts associated with property tax,
utility user tax, and franchise fees have been adjusted upward to reflect the new base projected for this
year. On the expenditure side, the only change was to the future CalPERS unfunded liability payments,
which needed to be increased significantly based on the Foster and Foster assessment from 2023
(presented to Council in May 2023). Overall, these changes nearly net out to zero in the short-term, but
in the outer years of the forecast, there are some structural imbalances.
Looking Forward
Although there are imbalances in this forecast version, staff anticipate that the City’s number one source
of revenue, sales and use tax will need to be increased at the time of the FY 2024-25 Budget Supplement
which should alleviate those imbalances and create a surplus in the outer years. Sales and use tax will
need to be carefully evaluated and will consider Q2 results which will be released around March 2024.
1 https://fred.stlouisfed.org/series/APU0000708111
2 Hot Mix Asphalt (AC) is used on large-scale paving projects like roads and surface parking lots.
3 Portland Cement Concrete (PCC) is primarily used throughout the City for sidewalk, curb ramp, and driveway
replacements.
Budget Report Pg. 7 Page 95 of 241
Mid-Year Expenditure Budget Changes
Approximately 50% of the City’s budget is funded by sales and use tax, one of the more volatile revenue
streams. This is good in good times and can cause shortfalls during periods of economic downturns. As
part of the 2023-25 Financial Plan, Council established a “revenue stabilization reserve” of $2 million
which will help provide a glidepath in the short term.
Additionally, staffing budgets will be updated to reflect any negotiated changes that happened between
April 2023 and April 2024 in addition to changes in employees and their associated benefits. Because the
City prepares a two-year budget, departments should have considered the impacts of inflation and
contractual increases on non-salary expenditures in the FY 2023-24 adopted budget. Minor adjustments
are permitted if they are within a certain parameter and are generally required to be offset elsewhere in
the budget.
In preparation for the 2023-24 Budget Supplement and the 2025-27 Financial Plan, there are a number of
other considerations that staff is planning to factor into the updated long-term forecast:
• Labor Pressure Like many other public agencies, the City is seeing increased pressure related to
employee compensation, due to inflation and an increased cost of living. Per the City Council’s
adopted labor relations philosophy, the City is to consider financial sustainability, community
acceptability, relevant labor market data, and internal relationships in evaluating competitive
compensation. Despite the fact that the City does not have any control overcompensation in
comparator agencies, the reality is that market data significantly influences the compensation
provided by the City.
• Development and Population Growth Current and planned development activity is adding
residential units, which will expand the city’s population. To support our growing community, the
City needs to expand infrastructure and amenities (such as park space). While there are near-term
costs associated with the development of this infrastructure, the City will also need to factor in
costs to maintain this infrastructure and amenities into the future. This type of work is currently
performed by a combination of City staff and contract services, and investments in both will need
to be made in order to maintain new assets to current standards.
• Development and Operations of Fire Station 5 As a part of the development agreement for the
Avila Ranch Development, the builder is required to mitigate the increased demand on fire
protection services. The City is currently in discussions with the builder to determine the best
path forward relative to both a temporary solution and then development of a permanent fire
station at full buildout of Avila Ranch. While a Mello-Roos property-based charge is assessed for
parcels in the Avila Ranch Community Facilities District will cover a portion of the ongoing costs
to support expanded fire service, the General Fund will be impacted by both development and
ongoing operations of a fifth fire station. Fire staff is currently working to forecast ongoing
operating expenditures associated with staffing a fifth fire station.
• General CIP Imbalances In addition to the challenges highlighted earlier in the report, it is crucial
to emphasize the impact of inflation on all Capital Improvement Projects (CIP) undertaken by the
City. Inflation has significantly increased construction costs across the board, which makes it
difficult to maintain a balanced CIP. Inflationary pressures are expected to continue into the 2025-
Budget Report Pg. 8 Page 96 of 241
Mid-Year Expenditure Budget Changes
27 Financial Plan, where currently programmed funding for future projects likely will not be
sufficient.
A prime illustration of this inflationary pressure is evident in the case of Righetti Park, a long-
standing project initially projected at approximately $6 million. Current estimates place project
costs at $20.5 million. This glaring disparity underscores the urgency to re-assess cost estimates
comprehensively. The City must acknowledge the substantial impact of inflation and its
implications on the financial landscape. The City Manager quoted economists at the outset of
significant inflation noting that it would have an impact on capacity and expectations and noted
“Inflation, the insidious thief of dreams”.
In light of these challenges, a strategic re-prioritization of projects is imperative. This involves not
only acknowledging the current financial constraints induced by inflation but also formulating
realistic and adaptive strategies to navigate these challenges successfully. Only through a
proactive and comprehensive reassessment can the City make informed decisions that ensure the
sustained progress of crucial infrastructure projects. A revised forecast will be presented to the
City Council during the Supplemental Budget Process.
Budget Report Pg. 9 Page 97 of 241
Mid-Year Expenditure Budget Changes
Table 8 - General Fund Five-Year Forecast
Budget Report Pg. 10 Page 98 of 241
Mid-Year Expenditure Budget Changes
Section B: Mid-Year Expenditure Budget Changes
The mid-year budget is an opportunity to make mission critical adjustments throughout the year. It is also
an opportunity to evaluate any unassigned fund balance from the prior year as confirmed through the
annual audit. Unassigned fund balance from the prior year is considered “one-time” in nature and should
only be used to fund items as outlined in Section 8 of the City’s Fiscal Policies:
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
Strategic Recommendation of One-time Fund Balance
In line with the above policy and as planned in the adopted 2023-25 Financial Plan, staff recommend
making a $2.4 million investment (across all funds) for an additional payment to CalPERS. Given that
CalPERS rates of return fell short in FY 2022-23, staff recommends that Infrastructure should be the
priority for the remaining unassigned fund balance for two main reasons:
1. The cost of projects is going up drastically and by getting funding into the community now, it is a
better return on investment than waiting to do projects later at a much higher cost.
2. By allocating funding into the City’s Infrastructure Investment Fund, it keeps these funds liquid in
case of an emergency while the reserve is being utilized for emergency storm work.
The following table summarizes the one-time budget recommendations for FY 2023-24 by funding source.
Additional detail about each funding source and the available balances is found in the corresponding
subsections. Enterprise fund budget recommendations can be found within Section C of this report.
Table 9 - Budget Recommendations by Funding Source (See Section C for Enterprise Funds)
Sub Section Funding Source Amount
A General Fund 2022-23 Unassigned Fund Balance 4 $ 6,471,095
B Local Revenue Measure 2022-23 Unassigned Fund Balance $ 3,872,937
C Capital Reserve $ 1,860,000
D Completed Projects Balance or Reallocation of Project Budgets $ 680,000
E IT Replacement Fund $ 33,200
Total Budget Changes $ 12,917,232
4 Includes $2 million CalPERS Additional Discretionary payment which is listed as “assigned” for that purpose in the
audited financials. In addition to the recommendation to appropriate $6,296,095 of unassigned fund balance, staff
also recommend a planned investment of $3,804,358 with the remaining General Fund Unassigned Fund Balance.
Formal Council action on this item would take place with a future budget cycle (see subsection A for detail).
Budget Report Pg. 11 Page 99 of 241
Mid-Year Expenditure Budget Changes
A. General Fund Unassigned Fund Balance
The General Fund ended FY 2022-23 with a significant one-time unassigned fund balance of approximately
$8.3 million largely due to major tax revenues exceeding projections, high interest earnings, and
expenditure savings associated with the activation of the Fiscal Health Contingency Plan in response to
the 2023 winter storms. Additionally, FY 2022-23 was the second year of the 2021-23 Financial Plan which
means unspent funds are not eligible for carryover.
Table 10 - General Fund Balance per Audited Financials
CalPERS Additional Discretionary Payment (ADP) – With the 2018-19 Budget Adoption, Council adopted
the “Fiscal Health Response Plan” to help balance the long-term forecast and begin an ambitious schedule
to pay down pension obligations over 20 years instead of 30 years. As shown in the table above, the City
has been planning to use $2,000,000 of its General Fund year end fund balance to make and additional
CalPERS downpayment. This additional payment is consistent with the City’s adopted strategy to pay
down its pension liabilities and is also in line with feedback provided by an independent actuary in May
2023 who noted that the City’s approach to making additional payments has made an impact to the
funded status of the pension plan, despite significant market losses experienced by CalPERS in recent
years. The table below shows the breakdown of the recommended appropriation for FY 2023-24 from all
funds. If approved, this additional payment will be made in spring of 2024.
Table 11 - Recommended FY 2023-24 CalPERS ADP
Fund ADP Amount
General Fund $ 2,000,000
Water $ 164,840
Sewer $ 169,419
Parking $ 61,003
Transit $ 12,555
Whale Rock $ 21,417
TBID $ 7,976
Total All Funds $ 2,437,211
Budget Report Pg. 12 Page 100 of 241
Mid-Year Expenditure Budget Changes
Table 12 - Unassigned General Fund Balance Recommendations
Line Funding Source/ (Use) Amount
1 General Fund Unassigned Fund Balance (after CalPERS ADP) $8,275,453
2
Fire - Additional Fuel Budget - The fire department’s fuel budget is underfunded
for projected use in FY 2023-24 based on year-to-date trends and last year’s
spending. Staff is requesting $30,000 increase in budget to address the increased
costs. In FY 2022-23 fuel consumption was $96,086. The budget for FY 2023-24
is $70,000. The department has already used over 75% of the appropriated
budget. Oil and waste disposal is also budgeted from this account and have driven
costs up as well.
(30,000)
3
Mobility Services Salary Restructure – This is an administrative adjustment to
realign the Mobility Services Salary costs to be distributed based on the
percentage of work for each fund. This request is for the Active Transportation
portion of the Deputy Director of Mobility Services, Mobility Services Business
Manager and an Administrative III. This distribution will be included in the base
budget of the 2024-25 Supplemental Budget and ongoing forecast.
(46,095)
4
Public Art Contribution – This one-time additional contribution to Public Art will
fund the purchase of the “David” sculpture currently showcased in the Mission
Plaza lawn ($120,000) which will be relocated to one of the City’s parks. An
additional $100,000 will be earmarked to help support the local art community
with a variety of art projects around the City.
(220,000)
5
Repayment of IIF for 1166 Higuera – As detailed in R-11459, $4.8 million of the
Infrastructure Investment Fund (IIF) was appropriated to purchase 1166 Higuera
Street and will be reimbursed via a 30-year interfund loan with the Parking Fund.
To ensure that the IIF has sufficient funding for upcoming projects (Prado Creek
Bridge, Righetti Park, etc.), staff recommend using one-time balance to repay the
IIF and will use Parking Fund debt proceeds to help offset CIP needs over the next
30 years. To keep the General Fund reserve at a 14% funded level, the remaining
balance of 1166 Higuera ($845,000) will be transferred in FY 2024-25 or when the
City receives storm reimbursements (see Line 10).
(4,000,000)
6
Allocation to Insurance Fund for Appropriation – One-time funding is necessary
for various legal support related matters. Because the exact amount and timing
of payments are unknown, staff recommend allocating this amount directly to
(and subsequently appropriation from) the Insurance Fund. Any unused amount
will therefore remain in the insurance fund for the intended purpose. Because
these costs are often unanticipated, staff are working on a policy
recommendation which will be presented with the 2024-25 budget to help
support and smooth these costs over the years.
(175,000)
7 Total Recommendations for FY 2023-24 Budget Appropriations (lines 2-6) $(4,471,095)
8 Remaining Balance at FY 2023-24 Year End $ 3,804,358
9 Planned Investments for FY 2024-25
10 Investment into Infrastructure Investment Fund – As explained in Section A, the
cost of building and maintaining infrastructure is rapidly increasing and there is
a fundamental imbalance between the City’s infrastructure needs and available
resources. Staff recommend allocating the remaining one-time general fund
balance to the IIF to help cover the cost of planned projects specifically related to
(3,804,358)
Budget Report Pg. 13 Page 101 of 241
Mid-Year Expenditure Budget Changes
Line Funding Source/ (Use) Amount
investments in the Cultural Arts District and for projects related to growth and
development, such as parks. This recommendation is to earmark the remaining
unassigned fund balance for use in 2024-25 or whatever year the City can secure
reimbursement of costs related to the 2023 winter storms. The advantage of this
is that it keeps the reserve at a 14% funded rate. Staff will continue to provide
updates to Council and will make a recommendation for appropriation with a
future budget cycle.
11 Total current and future budget recommendations of FY 2022-23 Unassigned Balance
(Line 7 + Line 10) $(8,275,453)
12 Remaining 2022-23 Unassigned Fund Balance $ 0
B. Local Revenue Measure 2022-23 Unassigned Fund Balance
The Local Revenue Measure (LRM) Fund is used to track revenue and expenditures related to Local
Revenue Measure G-20. It helps protect and maintain 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.
As outlined in the ACFR, the LRM has an unassigned fund balance of about $3.8 million. This fund balance
reflects revenues exceeding expenditures in FY 2022-23.
Table 13 - Local Revenue Measure FY 2022-23 Fund Balance
Budget Report Pg. 14 Page 102 of 241
Mid-Year Expenditure Budget Changes
Table 14 - Unassigned Local Revenue Measure Fund Balance Recommendations
Line Funding Source/(Use) Amount
1 Local Revenue Measure Unassigned Fund Balance $3,872,937
2
Arterials 2023 - Additional Asphalt Repairs on Johnson - This budget
recommendation is necessary for additional asphalt repairs on Johnson Road,
involving supplemental base repairs and crack sealing. These repairs are crucial
in preparing Johnson Road for the upcoming 2024 paving project. The proposed
work extends the repair limits from Laurel to Orcutt. Allocating funds for these
additional repairs is essential to ensure the structural integrity of the road and
optimize the success of the impending paving initiative. Construction March 2024
(300,000)
3
Arterials 2023 - Morro Street Sidewalk - This budget request is specifically
directed towards the Morro Street Sidewalk project, aiming to extend the design
of the newly constructed sidewalk near the New Anderson Hotel to the corner of
Morro/Higuera. The proposed undertaking involves the removal and replacement
of the existing sidewalk on approximately half a block on Higuera to align with
the recently installed section fronting the hotel. The requested funds will enable
the City to maintain visual continuity and enhance pedestrian infrastructure in
this vital area. It is intended that this sidewalk replacement work would occur
prior to paving Morro Street with the 2023 Arterials Project. Construction
February/March 2024
(200,000)
4
Arterials 2023 - Palm Street Paving - This budget recommendation is for the Palm
Street paving bid alternate initially proposed in conjunction with the 2023
Arterials project, awarded to Souza Construction in May 2023. Additional funds
are now sought to facilitate the implementation of this bid alternate. Should the
requested funds be transferred, the contractor will proceed with the necessary
work, focusing on paving over the concrete street segment located off Palm Street
near Santa Rosa Street and various sidewalk improvements. Construction
February/March 2024
(915,000)
5
Augusta / Smith CMP Replacement - This budget recommendation is for financial
support to address a critical CMP storm drainpipe failure at the intersection of
Augusta and Smith Streets, a consequence of a recent storm event. The proposed
project entails the removal and replacement of approximately 425 linear feet of
18" CMP (Corrugated Metal Pipe) and the installation of three catch basins.
Timely approval of this budget will facilitate the necessary repairs to mitigate
potential risks and ensure the infrastructure's resilience. Design January 2024
(750,000)
6
Fire Marshal Vehicle (Electric)5 - The truck assigned to the Fire Marshal was
originally projected for replacement in 2024 in the 2021-2023 Financial Plan and
according to the city’s fleet replacement policy, it is past due for replacement.
Because of the reshuffling of CIP in the 2023-25 Financial Plan, replacement of
this vehicle was pushed out, but it is starting to have costly repair issues. This is
also a good opportunity to replace the vehicle with an electric vehicle which are
now in stock and eligible for various rebate programs.
(70,000)
7
Police Radio Encryption - The Police Department is seeking the necessary funding
to update its police radios with both multi-key encryption and Wi-Fi licensing to
minimize the burden on IT staff and make the transition to digital encryption
(91,000)
5 This vehicle is eligible for a 15% rebate which will bring the net cost to approximately $60,000. It is necessary to
budget for the entire cost of the vehicle; however, the rebate will later be collected as revenue.
Budget Report Pg. 15 Page 103 of 241
Mid-Year Expenditure Budget Changes
Line Funding Source/(Use) Amount
manageable and useful for our personnel. The police radio is a critical piece of
safety equipment for police officers and dispatchers, and being able to
communicate with other local agencies is a necessity to ensure public safety in
San Luis Obispo.
8
Righetti Park Investment - This budget recommendation is to secure additional
funding for Righetti Park, specifically in support of the linear park, pocket park,
and community parks, which are currently at 50% design completion. Ongoing
discussions are in progress to determine which segment of the project the City
aims to construct first, as recent estimates have exceeded initial expectations.
The additional funding sought is intended to support the development of one of
the smaller parks or a section of the community park, allowing for phased
implementation while ensuring that the project remains on track.
(304,637)
9
Storm Response - This budget recommendation is to secure funding for city-wide
storm response mitigation planting, encompassing the replacement of trees and
vegetation removed during emergency storm repairs. Additionally, funds are
sought for an unforeseen project at 152 Cuesta, addressing wall repair resulting
from storm damage. The City is actively pursuing supplementary funds and FEMA
reimbursement to support these initiatives. 152 Cuesta has already been
completed (Dec 2023), Mitigation Planting design 2024 - Planting late 2024 - 5
years of monitoring following planting.
(600,000)
10
Streets R&R - Higuera Street Crack Sealing - This budget recommendation is for
imperative crack sealing on Higuera Street, spanning from Marsh to LOVR, in
preparation for the scheduled Higuera Complete Streets project in Fall 2024. The
Complete Streets project involves slurry seal application, and by conducting crack
sealing six months in advance, we aim to optimize the effectiveness of the overall
pavement maintenance. Allocating funds for this preparatory crack sealing
initiative is crucial to enhance the longevity and resilience of Higuera Street.
Construction March 2024
(250,000)
11
Streets R&R - Paving Sacramento Drive - This funding recommendation is for
urgent bike lane paving along Sacramento Drive from Industrial to Via Esteban.
The current pavement conditions, characterized by cracking and poor quality,
pose significant challenges for cyclists. Allocating funds for this project will not
only enhance the safety and accessibility of the bike lane but also contribute to
the overall well-being of cyclists utilizing this route. Draft design and bid early
2024
(220,000)
12
Truck 1 Refurbishment - Truck 1, a 100’ heavy-duty tractor-drawn Aerial
Apparatus, provides essential access to buildings in the City beyond the reach of
ground ladders, typically above 30 feet. Truck 1 is a 2010 Pierce that is rapidly
deteriorating and not likely to reach the scheduled replacement in FY 2029-30.
This refurbishment request is to replace drive-train components prior to
catastrophic failure. Extending the life of Truck 1 will allow the department to
replace it at the end of its expected lifespan and account for extended production
delays due to supply chain shortages.
(172,300)
13 Remaining Balance $ 0
Budget Report Pg. 16 Page 104 of 241
Mid-Year Expenditure Budget Changes
C. Capital Reserve
The City maintains a committed reserve of 20% of the capital improvement plan budget from the Local
Revenue Measure (LRM) for the purpose of offsetting unanticipated cost increases, unforeseen
conditions, and urgent unanticipated projects to provide continued investment in infrastructure
maintenance and enhancement. Use of funds from the Capital Projects Reserve Fund can be made upon
Council approval as necessary during any fiscal year. The reserve is planned to be replenished to the 20%
level with the supplemental budget.
The recommended use of the reserve is in response to the Righetti hillside slope failure that occurred in
January 2023, prompting a need for initial repair by the developer. Responsibility is currently under
dispute, but the City intends to execute emergency mitigation work in early 2024 to address risk to below
properties. The City is actively investigating and exploring potential cost recovery options, possibly
through litigation with the developer. This budget request provides funding to do the work now, with
reimbursement sought later.
After this budget recommendation, the reserve will be about 38% funded which will allow for additional
emergent needs through the remainder of the fiscal year. Public Works staff are aware of several projects
that will require additional funding however the timing and amount of funding is still unknown at this
time. One of these projects includes the remodel of the City-County Library restrooms which are necessary
to bring it up to ADA compliance.
Table 15 - Recommended Use of Capital Reserve
Capital Reserve Balance as of January 2024 $ 3,370,000
Righetti Hillside $ (1,860,000)
Remaining Balance $ 1,510,000
D. Completed Projects Balance or Reallocation of Project Budget
When projects are completed under budget, the balance goes into a “completed projects” account which
is eligible for reallocation by the City Manager. This is often a great way to help bridge gaps between
projects that need marginal additional funding. Approval by the Council is required for all transfers from
the completed projects account for any new projects as well as for any existing project when the transfer
amount exceeds the City Manager’s purchasing authority. Additionally, listed below are some transfers
out of projects that have identified excess budget available for reallocation that have not yet been
transferred into the completed projects account.
Table on next page
Budget Report Pg. 17 Page 105 of 241
Mid-Year Expenditure Budget Changes
Table 16 - Recommended Use of Completed Projects Balances (Capital Outlay Fund and Capital Outlay LRM)
Funding Source/(Use) Amount
Completed Projects Balance $167,000
Transfers from: $513,000
Railroad Safety Trail Taft to Pepper 113,000
Bridge Maintenance 150,000
CDBG Project 87,000
ATP 30,000
California/Foothill 75,000
Annual Striping and Signage 25,000
Sidewalk Maintenance Project 33,000
Transfers to: $(680,000)
Pismo / Johnson Funding to address increased wall height (200,000)
Streets R&R - Striping on Orcutt Road (100,000)
Arterials 2023 - Bike Path Repair adjacent to Cerro San Luis - (30,000)
North Chorro Greenway (350,000)
Remaining Balance $ 0
E. IT Replacement Fund
The IT Replacement Fund is funded based on annual allocations through the Capital Improvement
Planning process as well as through the collection of IT surcharges. The IT surcharge is collected on
Community Development Department fees and is intended to help offset the cost the City’s permitting
program, EnerGov. Back-end configuration changes need to be made to the program in order for it to
support the new fee structure that will go into effect on July 1, 2024. The remaining fund balance is
necessary to help smooth the cost of uneven IT replacement costs over the next five years.
Table 17 - Recommended Use of IT Replacement Fund Balance
IT Replacement Fund Balance $ 908,000
EnerGov Upgrades $ (33,200)
Remaining Fund Balance $ 874,800
Budget Report Pg. 18 Page 106 of 241
Enterprise Funds – Water Fund
Section C. Enterprise Funds
The City’s financial structure is separated into governmental funds and business activities or Enterprise
funds. Business activities are distinguished from governmental funds by their similarity to private sector
enterprises and are predominantly financed through user service charges. The City has four unique funds
that fall into this category:
C1: WATER FUND
Revenue
Water sales are trending on track with revenue projections and revenues in prior fiscal years. At the time
of writing this report, revenues only reflect four months (or 33%) of water sales because of the timing of
billings. Water sales, base charges, sales to Cal Poly, and other miscellaneous utilities set up fees comprise
over 90% of anticipated revenues.
Table 18 - Water Fund Revenue
Overall City water demand has remained relatively consistent over the past five years, with minor
variations year-to-year. 2023-24 water use is on track with forecasted demands. A dry winter may result
in slightly higher than anticipated revenues, while a wet winter may result in slightly lower than forecasted
revenues. Figure 1 plots the City’s water demand and population growth from fiscal years 2000 through
2024. Increased water conservation efforts by the Department and the community have offset water
demand generated by population growth.
Revenue Type 2022-23
Actual Budget YTD Actuals %
Received
Midyear
Revised
Budget
Total
Midyear
Changes
1 Service Charges and Base Fees 23,407,610 26,146,099 10,473,895 40%26,146,099 -
2 Cal Poly Capacity & Resilience 233,025 251,072 233,025 93%251,072 -
3 Investment and Property Revenue 567,540 50,000 256,337 513%50,000 -
4 COVID Rate Relief Program (Contra-account)*(53,940) - (84,946) - -
5 Long Term Debt Proceeds 122,214 872,574 - 0%750,360 (122,214)
6 State Grants 371,201 697,500 218,982 31%1,237,171 539,671
7 Other Grants/Subventions 53,940 - 96,759 - -
8 Other Revenue 517,680 208,647 292,032 140%208,647 -
9 Transfers in (Impact Fees)3,614,800 - 111,897 - -
10 Total 28,834,071$ 28,225,893$ 11,597,982$ 41%28,643,350$ 417,457$
FY 2023-24
Water Sewer Parking Transit
Figure 1 Water Demand Fiscal Years 2000-2024
Budget Report Pg. 19 Page 107 of 241
Enterprise Funds – Water Fund
Other major sources of forecasted revenue in the Water Fund include $657,171 received through the Cal
OES Hazard Mitigation Grant Program for the Public Safety Power Shutoff project and $580,000 for Round
3 of the Proposition 1 Groundwater Grant Program. Additionally, staff are anticipating about $750,000 in
loan proceeds from I-Bank for the Water Treatment Plant Energy Efficiency project. This project is
complete, but payment is being retained until the performance period for the project is met by the
contractor. The Water Fund has only partially received these funds because they are contingent on project
timelines and corresponding disbursements. The Water Fund remains on track to meet revenue targets
and short-term operational, capital expenditure, and reserve needs.
Operating Expenses
Costs related to chemicals, electricity, and capital project delivery continue to increase. Industry-specific
increases have exceeded general inflation and are not anticipated to normalize this fiscal year. Chemical
and electricity are about 20% of the annual operating budget. Actual electricity expenses are trending
lower in quarters 1 and 2 because of increased use of water from the Whale Rock Reservoir (see Figure
1), which costs less to pump water from. The change in source water strategy is largely due to damage to
the Nacimiento pipeline caused by the 2023 winter storms. Staff has been notified that electricity will
increase an additional 14% for bundled customers and 25% for Community Choice Aggregation (CCA)
customers beginning January 2024. Staff anticipate that this will be partially offset by the newly
implemented Tesla Backup Battery which is calculated to reduce electricity costs by approximately
$15,000 per month. The anticipated electricity savings resulting from the use of this battery are not fully
realized in YTD expenditures since electricity rates from October-May are lower than peak pricing from
June-September.
Budget Report Pg. 20 Page 108 of 241
Enterprise Funds – Water Fund
Table 19 - Water Fund Operating Expenditures
Mid-Year Budget Changes
There are three mid-year budget amendments being recommended as outlined below. These
recommendations can be absorbed within the Water Fund’s working capital. All budget amendments
address safety, regulatory, or other issues otherwise necessary to the provisions of water services.
Table 20 - Water Fund Mid-Year Operating Budget Requests
Budget Request Description Current Amount
Budgeted
Amount
Recommended New Total
1 Refund to the General Fund for Fire Hydrant
Expenses $0.00 $92,218 $92,218
2 Water Treatment Plant Ozone Containment
Repairs $0.00 $180,000 $180,000
3 Arc Flash Survey for the Water Treatment Plant
and Water Distribution $0.00 $132,750 $132,750
4 TOTAL $0.00 $404,968 $404,968
In September of 2020, the Governor signed Senate Bill No. 1386 which specified that hydrants are part of
the system of public improvements included in the definition of “water” for purposes of the Proposition
218 Omnibus Implementation Act. The bill specified that the fees or charges for property-related water
service imposed or increased, as specified, may include the costs to construct, maintain, repair, or replace
hydrants as needed. During the period in which SB 1386 went into effect, all Fire hydrant related costs
had been paid by the General Fund. This action is to document the amount of costs that are now having
to be paid back to the General Fund by the Water Fund as a “true up” action. This is a one-time request,
as hydrant related costs will be funded by the Water Fund moving forward.
The Water Treatment Plant Ozone repair budget change is a one-time request that will address minor
modifications to meet required permit compliance for the water treatment plant.
Lastly, the Arc Flash Survey is a one-time request for Water Treatment and Water Distribution programs.
This budget change will allow for a third-party contractor to conduct an arc-flash survey designed to
reduce the potential for injury to staff who are maintaining or operating equipment associated with water
and wastewater treatment.
Water Fund Operating
Expenditures FY 2022-23 Actual Budget Year-to-date Actual % Expended
1 Salaries 3,385,240$ 3,887,239$ 1,682,108$ 43.3%
2 Retirement/Benefits 840,370$ 936,831$ 447,637$ 47.8%
3 Contract Services 9,793,078$ 1,067,009$ 911,800$ 85.5%
4 Other Operating Expenditures 1,154,345$ 13,005,131$ 9,709,026$ 74.7%
5 PERS Unfunded Liability 843,537$ 678,507$ 668,626$ 98.5%
6 Transfers Out 2,311,753$ 2,826,143$ 1,413,072$ 50.0%
7 Utilities 657,418$ 1,033,720$ 362,888$ 35.1%
8 Total 18,985,741$ 23,434,580$ 15,195,157$ 64.8%
FY 2023-24
Budget Report Pg. 21 Page 109 of 241
Enterprise Funds – Water Fund
The Water Fund Long Term Forecast
Industry specific cost increases remain high in chemicals, electricity, and capital expenses. As staff learn
more about our assets through the Infrastructure Renewal Strategy and the Strategic Asset Management
Plan, this may shift prioritization of capital projects and forecasted expenses.
Chemicals have somewhat stabilized but remain high in cost relative to a few years ago. Electricity
continues to increase at an above-inflation rate. Staff have been notified that electricity will increase an
additional 18% for bundled customers and 24% for Community Choice Aggregation (CCA) customers
beginning January 2024. These estimates reflect a system-wide impact and do not delineate between
customer categories or rate types.
Capital expenses continue to exceed projected estimates. The drivers of increased capital expenses vary
from increased base material costs to ongoing supply chain issues. The California Construction Cost Index
reflects a 9.5% increase from November 2022 to November 2023.
Specific costs, like electricity and construction, are impacting the Utilities Department’s budget in outsized
ways, but general inflation still impacts costs as whole. The Municipal Cost Index (MCI), an index designed
to reflect the effects of inflation on providing municipal services, peaked at a 6.27% monthly increase in
January 2023. For comparison, the year-over-year percent changes for MCI as of September for the last
seven years can be found in the Sewer Fund write up below.
Budget Report Pg. 22 Page 110 of 241
Table 21 - Water Fund Five Year Forecast
in thousands
(A)
Actual
2022-23
(B)
Budget
2023-24
(C)
Mid Year
Revised
2023-24
(D)
Forecast
2024-25
(E)
Projected
2025-26
(F)
Projected
2026-27
(G)
Projected
2027-28
Revenue
Charges for Service
1 46102-Development Review Fees 37$ 26$ 26$ 26$ 26$ 26$ 26$
2 46701- Sales to Cal Poly 1,195$ 1,119$ 1,119$ 1,184$ 1,340$ 1,458$ 1,558$
3 46702- Water Sales 15,260$ 17,717$ 17,717$ 19,045$ 20,474$ 21,395$ 22,358$
4 46703- Utilities Base Charges 5,910$ 6,243$ 6,243$ 6,712$ 7,215$ 7,540$ 7,879$
5 46704- Reclaimed Water Sales 1,042$ 1,080$ 1,080$ 1,161$ 1,248$ 1,304$ 1,363$
6 46708 - Utilities Setup Fees 180$ 60$ 60$ 60$ 60$ 60$ 60$
7 46709- Other Utilities Charges (0)$ 1$ 1$ 1$ 1$ 1$ 1$
8 46711- Water Distribution -$ -$ -$ -$ -$ -$ -$
9 46712- Low Income Subsidy (16)$ (100)$ (100)$ (100)$ (100)$ (100)$ (100)$
10 46713- Cal Poly Capacity & Resilience 233$ 251$ 251$ 263$ 288$ 299$ 310$
11 Total Charges for Service 23,841$ 26,397$ 26,397$ 28,352$ 30,552$ 31,983$ 33,455$
12 Total Other Revenue1 1,770$ 1,829$ 2,246$ 3,719$ 11,370$ 202$ $202
13 Total Impact Fees 3,649$ 1,810$ 1,810$ 800$ 800$ 800$ $800
14 Total Revenue 29,260$ 30,036$ 30,453$ 32,872$ 42,722$ 32,985$ 34,457$
Expenditures
15 Total Salaries and Benefits 5,069$ 5,503$ 5,503$ 5,747$ 5,945$ 6,158$ 6,365$
16 Total Contract Services 9,835$ 12,421$ 12,553$ 12,721$ 13,009$ 13,354$ 13,755$
17 Total Other Operating Expenditures 1,782$ 2,685$ 2,685$ 2,753$ 2,868$ 2,954$ 3,043$
18 Total Capital Asset Expense Expenditu 2,653$ 28,551$ 28,823$ 4,319$ 11,979$ 5,826$ 5,975$
19 Total Debt Services Expenditures 2,301$ 1,870$ 1,870$ 1,869$ 1,866$ 2,391$ 2,390$
20 Total General Expenditures 2,312$ 2,826$ 2,826$ 3,250$ 3,738$ 3,924$ 4,121$
Total Expenditures 23,952$ 53,856$ 54,261$ 30,659$ 39,404$ 34,608$ 35,649$
21 CalPERS Additional Discretionary Payment -$ 679$ 679$ 706$ 165$ 165$ 165$
22 Total Expenditures (After CalPERS ADP)23,952$ 54,535$ 54,940$ 31,365$ 39,569$ 34,773$ $35,814
23 Working Capital - Beginning 34,725$ 40,033$ 40,033$ 15,547$ 17,053$ 20,205$ 18,418$
24 Change in Financial Position 5,308$ (24,499)$ (24,486)$ 1,506$ 3,152$ (1,788)$ (1,357)$
25 Working Capital - Year End 40,033$ 15,534$ 15,547$ 17,053$ 20,205$ 18,418$ 17,060$
26 Operating Reserve (20%)4,260$ 5,061$ 5,088$ 5,268$ 5,485$ 5,756$ 5,935$
27 Rate Stabilization (10%)2,237$ 2,508$ 2,508$ 2,694$ 2,903$ 3,039$ 3,179$
28 Other Reserves (115 Pension Trust Fund)176$ 176$ 176$ 176$ 176$ 176$ 176$
29 Unreserved Working Capital Year End 33,361$ 7,789$ 7,776$ 8,915$ 11,642$ 9,446$ 7,771$
1 Includes Loan Proceeds for Santa Rosa Project and Grant Funding in FY2025-26
2 Includes Project Carryover from 2-3 years prior in FY2023-24
Current Financial Plan 23-25
Budget Report Pg. 23 Page 111 of 241
Enterprise Funds – Sewer Fund
C2: SEWER FUND
Revenue
Sewer sales are trending on track with revenue projections and revenues in prior fiscal years. At the time
of writing this report, revenues only reflect three months (or 33%) of sewer sales because of billing timing.
Sewer service charges, base charges, sales to Cal Poly, and other miscellaneous utilities set up fees
comprise about 95% of anticipated revenues.
Table 22 - Sewer Fund Revenue
The City’s Sewer Service Charges and Base Fees continue to trend consistently with previous years. While
the sewer rates were increased by 4% on July 1, 2023 (Resolution 11428), this was largely offset by a
reduction in the default sewer cap from 5 to 4 6 and an extremely wet winter in 2023, which deflates the
sewer cap. Because the Utilities Department cannot meter sewer use, the sewer cap enables the
calculation of the maximum units that an account can be billed by averaging water use during winter
months when irrigation demand is lower.
Other major sources of revenue in the Sewer Fund include $1,368,927 through the Cal OES Hazard
Mitigation Grant Programs and $131,453 through the Proposition 1 Integrated Regional Water
Management Implementation Grant. Both grants contribute to flood control/protection and resiliency
elements of the Water Resource Recovery Facility upgrade. Additionally, staff are anticipating the
remainder of the loan proceeds for the WRRF upgrade to be realized in 2023-24 and 2024-25. These
revenues have only been partially realized because they are contingent on project timelines and
corresponding disbursements. The fund remains on track to meet revenue targets and short-term
operational, capital expenditure, and reserve needs.
Operating Expenses
Costs related to chemicals, electricity, and capital project delivery continue to increase. Industry-specific
increases have exceeded general inflation and are not anticipated to normalize this fiscal year. Chemical
and electricity are about 17% of the annual operating budget. Actual electricity expenses are trending
lower in quarter 1 and 2 due to delays in the WRRF upgrade, which will shift expenses from chemicals to
electricity. Consequently, chemical costs may trend higher and electricity costs may trend lower than
6 The sewer cap provides the maximum number of units that a residential customer is charged for sewer usage on
their monthly bill. By reducing the default sewer cap from 5 to 4, ratepayers with new accounts that do not have
an established sewer cap are only charged a maximum of 4 units on their sewer bill. The sewer cap is used because
staff are unable to meter sewer use.
Revenue Type 2022-23
Actual Budget YTD Actuals %
Received
Midyear
Revised
Budget
Total
Midyear
Changes
1 Service Charges and Base Fees 19,593,710 19,324,641 7,105,284 37%19,324,641 -
2 Cal Poly Capacity & Resilience 243,568 472,534 - 0%472,534 -
3 Other Revenue 523,148 224,000 276,029 123%224,000 -
4 State Grants 1,275,831 1,386,153 700,075 51%1,500,380 114,227
5 Investment and Property Revenue 680,086 50,000 380,056 760%50,000 -
6 Long Term Debt Proceeds 21,384,848 31,132,364 13,368,259 43%25,964,877 (5,167,487)
7 Transfer in (Impact Fees)1,968,592 - 61,170 - -
8 Total 45,669,785$ 52,589,691$ 21,890,873$ 42%47,536,432$ (5,053,260)$
FY 2023-24
Budget Report Pg. 24 Page 112 of 241
Enterprise Funds: Sewer Fund
anticipated. Staff has been notified that electricity will increase an additional 18% for bundled customers
and 24% for Community Choice Aggregation (CCA) customers beginning January 2024. The increases in
costs will be brought to Council in February of 2024.
Table 23 - Sewer Fund Operating Expenditures
Mid-Year Budget Changes
There are three mid-year budget amendments being recommended as outlined below. These
recommendations can be absorbed within the Sewer Fund’s working capital. All budget amendments
address safety, regulatory, or other issues otherwise necessary to the provisions of sewer services.
Table 24 - Sewer Fund Mid-Year Operating Budget Requests
Budget Request
Current
Amount
Budgeted
Amount
Recommended New Total
1 Sewer Inflow and Infiltration Reduction $0.00 $50,000 $50,000
2 Arc Flash Survey for Wastewater Collections $0.00 $39,550 $39,550
3 TOTAL $0.00 $89,550 $89,550
The Sewer Inflow and Infiltration reduction budget change is a one-time request that will contribute to a
project budget that includes sewer lateral rebates, engineering reports, construction plans for point
repairs, construction management services, sewer manhole re-coatings, sewer flow monitoring studies,
field testing of wastewater piping infrastructure, etc.
The Arc Flash Survey is a one-time request for Wastewater Collections programs. This budget change will
allow for a third-party contractor to conduct an arc-flash survey designed to reduce the potential for injury
to staff who are maintaining or operating equipment associated with water and wastewater treatment.
The Sewer Fund Long Term Forecast
Industry specific cost increases remain high in chemicals, electricity, and capital expenses. As staff learn
more about our assets through the Strategic Asset Management Plan and other studies, this may shift
prioritization of capital projects and forecasted expenses.
Chemicals have somewhat stabilized but remain high in cost relative to a few years ago. Electricity
continues to increase at an above-inflation rate. Staff have been notified that electricity will increase an
additional 14% for bundled customers and 25% for Community Choice Aggregation (CCA) customers
Sewer Fund Operating
Expenditures FY 2022-23 Actual Budget Year-to-date Actual % Expended
1 Salaries 3,291,795$ 3,889,630$ 1,702,353$ 43.8%
2 Retirement/Benefits 801,764$ 909,393$ 439,624$ 48.3%
3 Contract Services 921,169$ 1,251,733$ 1,285,240$ 102.7%
4 Other Operating Expenditures 1,539,529$ 1,595,059$ 912,542$ 57.2%
5 PERS Unfunded Liability 872,861$ 692,112$ 682,034$ 98.5%
6 Transfers Out 2,573,783$ 3,104,155$ 1,552,078$ 50.0%
7 Utilities 773,208$ 1,062,892$ 447,813$ 42.1%
8 Total 10,774,110$ 12,504,974$ 7,021,683$ 56.2%
FY 2023-24
Budget Report Pg. 25 Page 113 of 241
Enterprise Funds: Sewer Fund
beginning January 2024. These estimates reflect a system-wide impact and do not delineate between
customer categories or rate types.
Capital expenses continue to exceed project estimates. The drivers of increased capital expenses vary
from increased base material costs to ongoing supply chain issues. The California Construction Cost Index
reflects a 9.5% increase from November 2022 to November 2023.
Specific costs, like electricity and construction, are impacting the Utilities Department’s budget in outsized
ways, but general inflation still impacts costs as whole. The Municipal Cost Index (MCI), an index designed
to reflect the effects of inflation on providing municipal services, peaked at a 6.27% monthly increase in
January 2023. For comparison, the year-over-year percent changes for MCI as of September for the last
seven years are in the table below.
Table 25 - Municipal Cost Index % Change
Calendar
Year
MCI YoY % Change (September)
2023 1.42%
2022 9.14%
2021 10.80%
2020 1.04%
2019 0.55%
2018 3.24%
2017 3.41%
While the MCI has leveled in 2023, the anomalous and large increases in 2021 and 2022 are still
impacting the cost of providing sewer services.
Budget Report Pg. 26 Page 114 of 241
Enterprise Funds: Sewer Fund
(A)
Actual
2022-23
(B)
Budget
2023-24
(C)
Mid Year
Revised
2023-24
(D)
Forecast
2024-25
(E)
Projected
2025-26
(F)
Projected
2026-27
(G)
Projected
2027-28
Revenue
Charges for Service
1 46101-Planning and Zoning Fee -$ -$ -$ -$ -$ -$ -$
2 46102-Development Review Fees 38$ 26$ 26$ 26$ 26$ 26$ 26$
3 46104- Sewer Wye 8$ -$ -$ -$ -$ -$ -$
4 46701- Sales to Cal Poly 1,106$ 1,013$ 1,013$ 1,008$ 991$ 984$ 960$
5 46703- Utilities Base Charges 5,143$ 5,008$ 5,008$ 5,209$ 5,417$ 5,634$ 5,831$
6 46705- Sewer Service Charges 13,345$ 13,304$ 13,304$ 13,836$ 14,389$ 14,965$ 15,489$
7 46708 - Utilities Setup Fees 187$ 60$ 60$ 60$ 60$ 60$ 60$
8 46709- Other Utilities Charges (0)$ 1$ 1$ 1$ 1$ 1$ 1$
9 46711- Water Distribution -$ -$ -$ -$ -$ -$ -$
10 46713- Cal Poly Capacity & Resilience 244$ 473$ 473$ 473$ 473$ 473$ 473$
11 Total Charges for Service 20,071$ 19,884$ 19,884$ 20,612$ 21,357$ 22,142$ 22,839$
12 Total Other Revenue 23,634$ 32,793$ 27,652$ 15,187$ 187$ 187$ 187$
13 Total Impact Fees 1,981$ 1,225$ 1,225$ 600$ 600$ 600$ 600$
Total Revenue 45,686$ 53,901$ 48,761$ 36,399$ 22,144$ 22,929$ 23,626$
Expenditures
14 Salaries and Benefits 4,966$ 5,491$ 5,491$ 5,727$ 5,903$ 6,085$ 6,273$
15 Contract Services Expenditures 1,785$ 2,439$ 2,478$ 2,356$ 2,443$ 2,516$ 2,592$
16 Other Operating Expenditures 1,444$ 1,471$ 1,471$ 1,494$ 1,552$ 1,599$ 1,647$
17 Capital Asset Expenditures 31,789$ 58,427$ 58,477$ 3,631$ 8,090$ 1,689$ 10,761$
18 Debt Service Expenditures 1,376$ 1,382$ 1,382$ 7,006$ 7,099$ 7,090$ 7,088$
19 General Government 2,575$ 3,104$ 3,104$ 3,570$ 4,105$ 4,311$ 4,526$
-$ -$ -$ -$ -$ -$ -$
Total Expenditures 43,935$ 72,314$ 72,404$ 23,784$ 29,192$ 23,290$ 32,887$
20 CalPERS Additional Discretionary Payment -$ 692$ 692$ 721$ 169$ 169$ 169$
21 Total Expenditures (After CalPERS ADP)43,935$ 73,006$ 73,096$ 24,504$ 29,362$ 23,460$ 33,056$
-$ -$ -$ -$ -$ -$ -$
22 Working Capital - Beginning 47,774$ 49,526$ 49,526$ 25,191$ 37,085$ 29,868$ 29,336$
23 Change in Financial Position 1,751$ (19,105)$ (24,335)$ 11,894$ (7,218)$ (531)$ (9,430)$
24 Working Capital - Year End 49,526$ 30,421$ 25,191$ 37,085$ 29,868$ 29,336$ 19,906$
25 Operating Reserve (20%)2,429$ 2,777$ 2,785$ 4,031$ 4,221$ 4,320$ 4,425$
26 Rate Stabilization (5%)980$ 966$ 966$ 1,003$ 1,040$ 1,079$ 1,114$
27 115 Pension Trust Fund 180$ 180$ 180$ 180$ 180$ 180$ 180$
28 Other Reserves (i.e. SRF Loan)2,953$ 5,907$ 5,907$ 5,907$ 5,907$ 5,907$ 5,907$
Unreserved Working Capital Year End 42,983$ 20,590$ 15,352$ 25,965$ 18,520$ 17,850$ 8,280$
Financial Plan 23-25
Table 26 - Sewer Fund Five Year Forecast
Budget Report Pg. 27 Page 115 of 241
Enterprise Funds: Parking
C3: PARKING FUND
Revenue
Revenue from parking meters is tracking high with 57% of budgeted revenue received so far. Council
recently approved the purchase of a property for immediate use as a public parking lot located at 1166
Higuera and staff anticipates a minor increase in revenue this fiscal year as a result. Revenue from parking
structures is tracking low but this is likely due to the 842 Palm Street parking structure being converted to
a gateless operating system beginning July 2023. Revenue from 842 Palm is being combined with on-street
revenue since the rollout of the gateless parking system. Staff is working with the gateless payment
equipment contractor to correct the issue.
Council also approved changes to the parking structure operations on November 7, 2023, including
reestablishing the 1st hour free program and offering free parking on Sundays effective December 2023.
Staff has adjusted the revenue forecast to account for these program changes. Revenue from parking fines
is also tracking high and has been adjusted based on the first five months of actuals. Even with relaxed
enforcement during the holiday period, enforcement activities will remain steady for the remainder of
the fiscal year and revenue projections should be adjusted accordingly.
Other Revenue, which includes lease revenue and City employee parking revenue, has been adjusted to
account for the City’s implementation of a Governmental Accounting Standards Board (GASB) statement
relating to fiduciary activities. The exact amount is unknown at this time but is estimated to be $150,000
based on past actuals.
Table 27 - Parking Fund Revenue
Operating Expenditures
Salaries and benefits are on track but will likely see savings as the Parking Manager position vacated at
the beginning of December 2023 and is anticipated to be filled by March 2024. Other Contract Services
expenditures are tracking high because of multiple open purchase orders for service contracts. Utilities
services are tracking slightly low; however, no changes are recommended as part of Mid-Year Review.
Other Operating Expenditures, which include print and reproduction costs, maintenance supplies and
equipment, and safety-related purchases, is tracking high even when adjusted for one-time annual
purchases. Staff multiplies monitoring the needs of these operating line items for the remainder of the
fiscal year and will make the appropriate adjustments at year-end.
Revenue Type 2022-23
Actual Budget YTD Actuals % Received
Midyear
Revised
Budget
Total
Midyear
Changes
1 Parking Meters 2,574,431 4,876,000 2,928,306 63%4,876,000 -
2 Parking Structures 1,224,458 3,242,100 1,049,572 34%2,316,100 (926,000)
3 Parking Fines 1,369,398 852,100 778,332 95%1,050,010 197,910
4 Federal Stimulus Grants 700,000 - - - -
5 Long Term Parking 700,873 695,300 344,816 55%695,300 -
6 Other Revenue 1,396,024 537,824 493,053 92%763,584 225,760
7 Total 7,965,184$ 10,203,324$ 5,594,079$ 55%9,700,994$ (502,330)$
FY 2023-24
Budget Report Pg. 28 Page 116 of 241
Enterprise Funds: Parking
The Parking Fund is already overbudget for credit card merchant fees. This is due to the conversion of the
842 Palm Street parking structure to a gateless operation, continued mobile app adoption, and upgrade
of coin-only single space meters to credit card capable meters. The upgrade to credit card capable meters
was necessary to implement previously approved rate increases effective July 1, 2023. The requested
budget adjustment for this item is outlined in the next section.
Table 28 - Parking Fund Expenditures
Mid-Year Budget Changes
Staff requests two SOBCs for the Parking Fund as outlined below. The revised budget forecast for the
Parking Fund projects revenues that are sufficient to cover operating costs and debt service, including the
recommended budget changes below, without significantly impacting working capital.
Table 29 - Parking Fund Mid-Year Operating Budget Requests
Budget Request Current Amount
Budgeted
Additional Amount
Recommended New Total
1. Mobility Services Position Allocation True-up $1,922,947 7 $102,336 $2,025,283
2. Credit Card Merchant Fees $205,590 $185,000 $390,590
Total $2,128,537 $287,336 $2,415,873
1. Increase Salaries and Benefits by $102,336 to account for the reallocation of positions within
the new Mobility Services Division
As part of the multi-phased Mobility Services Division reorganization effort, the position allocations need
to be trued up for the following positions: 1) Deputy Director of Mobility Services, 2) Mobility Services
Business Manager, 3) Administrative Assistant III.
Deputy Director of Mobility Services – Currently 100% in Transit Fund; Is being allocated as follows:
• 60% Parking/20% Transit/20% General Fund (Active Transportation)
Mobility Services Business Manager – Currently 100% in Transit Fund; Is being allocated as follows:
7 Entire Parking Fund staffing budget.
Parking Fund Operating
Expenditures FY 2022-23 Actual Budget Year-to-date Actual % Expended
1 Salaries 1,165,576$ 1,405,279$ 646,846$ 46.0%
2 Retirement/Benefits 249,000$ 321,392$ 148,353$ 46.2%
3 Contract Services 906,613$ 969,370$ 838,827$ 86.5%
4 Other Operating Expenditures 530,578$ 392,450$ 432,136$ 110.1%
5 PERS Unfunded Liability 275,476$ 196,276$ 177,823$ 90.6%
6 Transfers Out 1,263,622$ 1,387,281$ 693,641$ 50.0%
7 Utilities 202,684$ 264,172$ 105,795$ 40.0%
8 Total 4,593,549$ 4,936,220$ 3,043,420$ 61.7%
FY 2023-24
Budget Report Pg. 29 Page 117 of 241
Enterprise Funds: Parking
• 20% Parking/75% Transit/5% General Fund (Active Transportation)
Administrative Assistant III – Currently 100% in Parking; Is being allocated as follows:
• 50% Parking/50% Transit
2. Increase Credit Card Merchant Fees by $185,000
The shift to credit card and digital payment options has increased dramatically as the City has modernized
its Parking program infrastructure. The credit card merchant fee budget was not adjusted when 842 Palm
went gateless or when coin only meters were replaced with credit card capable meters. Mobile application
(app) adoption has also increased as parkers can now pay for parking in 842 Palm via the apps. Prior to
July 2023, mobile apps were only available for use on-street. The City is currently undergoing a Parking
Rate Study that will analyze options to better account for credit card processing costs.
Long Term Forecast
Significant changes have occurred to the Parking Fund’s Long-Term Forecast since the adoption of the
2023-25 Financial Plan. In November 2023, Council approved parking relief scenarios including reinstating
the 1st hour free program in the parking structures, establishing free parking on Sundays in the parking
structures, and deferring a previously approved on-street rate increase scheduled for July 2025. Impacts
of the program changes will be analyzed, along with other revenue scenarios, with the completion of a
parking rate study. Recommendations from the study will be presented at Supplement including possible
recommendations to stabilize the long-term health of the Fund.
Staff also presented to Council in November other revenue line-item adjustments based on analysis of
current year actuals. Overall, the changes resulted in a $336,200 reduction in revenue for this fiscal year.
Staff will continue to monitor the approved changes and adjust out-year forecasts as necessary at
Supplement.
In November 2023, Council also approved the purchase of a property for interim use as a public parking
lot which has revenue and expenditure implications for the Parking Fund. Staff anticipates receiving
$60,800 annually in revenue from operation of the lot and expending $139,500 in annual loan interest
repayments for the first three years which will increase to $243,400 annually thereafter. The property will
require a one-time investment of an estimated $125,000 this fiscal year before the lot can be put into
operation. The one-time costs are included in the loan repayment term.
Since the adoption of the 2023-25 Financial Plan, the has City issued bonds for the Cultural Arts District
Parking Structure (CAD-PS) debt financing. The final interest rate on bond repayment came in lower than
budgeted which resulted in savings of $1 million for the first full repayment year. The annual debt
repayment was budgeted at $3.8 million which is now $1.6 million in fiscal year 2023-24 with full
payments of $2.8 million beginning in fiscal year 2024-25.
Additionally, the revised forecast includes adjustments to future capital expenditures to better align with
the City’s ability to deliver parking structure maintenance projects. In 2018, a Capital Asset Management
Plan was completed and provided a 10-year maintenance plan for the structures. The plan needs an
update to reflect specific projects completed since 2018 and to ensure estimated costs reflect current
market conditions. Associated costs to implement the recommended projects in the plan will be re-
programmed into the forecast once the update is complete. The long-term forecast also includes the
Budget Report Pg. 30 Page 118 of 241
Enterprise Funds: Parking
requested budget changes to increase staffing for the Mobility Services restructuring and to increase the
credit card merchant fees. The Mid-Year Budget review for the Parking Fund forecasts a stable fund with
sufficient revenue to cover anticipated operating costs and debt service.
Table 30 - Parking Fund Five Year Forecast
(A)
Actual
2022-23
(B)
Budget
2023-24
(C)
Mid Year
Revised
2023-24
(D)
Forecast
2024-25
(E)
Projected
2025-26
(F)
Projected
2026-27
(G)
Projected
2027-28
Revenue
1 Charges for Service
2 46401/46402 - Parking Meters 2,574,431 4,876,000 4,876,000 4,936,800 4,936,800 4,936,800 4,936,800
3 46403 - Parking Structures 1,224,458 3,242,100 2,316,100 1,805,400 3,388,400 3,840,653 3,852,272
4 46404 - Long Term Parking 700,873 695,300 695,300 766,300 720,800 727,500 738,200
5 46405 - Parking In-Lieu 23,824 23,824 23,824 23,824 23,824 23,824 23,824
6 46406 - City Employee Parking 82,705 - 89,760 89,760 89,760 89,760 89,760
7 44204 - Other Rent & Lease Revenu 698,623 456,300 474,200 475,500 479,600 483,900 504,400
8 Total Charges for Service 5,304,913 9,293,524 8,475,184 8,097,584 9,639,184 10,102,437 10,145,256
9 Total Citations and Fines 1,369,078 852,100 1,050,010 1,050,010 1,160,622 1,160,622 1,160,622
10 Total Other Revenue 1,291,192 57,700 175,800 76,800 30,000 34,000 40,000
11 Total Revenue without Debt Financing 7,965,184 10,203,324 9,700,994 9,224,394 10,829,806 11,297,059 11,345,878
12 Proceeds from Debt Financing - 46,315,169 47,000,000 - - - -
13 TOTAL REVENUE 7,965,184 56,518,493 56,700,994 9,224,394 10,829,806 11,297,059 11,345,878
14 EXPENDITURES
15 Operations
16 Total Salaries and Benefits 1,690,052 1,922,947 2,016,191 2,105,636 2,174,313 2,247,398 2,319,373
17 Total Contract Services 794,078 895,746 794,078 607,661 625,891 644,668 664,008
18 Total Other Operating Expenditures 769,146 703,126 465,236 694,888 720,073 741,675 763,926
19 Total Operating Expenditures 3,253,276 3,521,819 3,275,505 3,408,185 3,520,277 3,633,741 3,747,307
20 Total Capital Asset Expenditures 1,936,247 48,594,961 59,498,290 1,382,467 1,631,665 1,702,292 1,107,612
21 Total Debt Service Expenditures 819,618 4,195,421 2,508,307 3,827,322 3,832,523 3,847,476 3,843,068
22 Total Transfers to / from Other Funds 1,263,622 1,387,281 1,387,281 1,421,842 1,478,433 1,537,771 1,599,991
23 TOTAL EXPENDITURES 7,272,763 57,699,482 66,669,383 10,039,817 10,462,898 10,721,280 10,297,978
24 CalPERS Payment (ADP)61,003 61,003 61,003 61,003 61,003 61,003
25 Total Expenditures (After CalPERS ADP 7,272,763 57,760,485 66,730,386 10,100,820 10,523,901 10,782,283 10,358,981
26 Working Capital - Beginning 13,129,008 13,821,428 13,821,428 3,853,039 3,037,616 3,404,524 3,980,304
27 Change in Financial Position 692,421 (1,180,989) (9,968,389) (815,423) 366,908 575,779 1,047,901
28 Working Capital - Year End 13,821,428 12,640,439 3,853,039 3,037,616 3,404,524 3,980,304 5,028,204
29 Operating Reserve (20%)814,579 1,543,448 1,156,762 1,447,101 1,470,560 1,496,243 1,518,075
30 115 Pension Trust Fund - 61,446 61,446 61,446 61,446 61,446 61,446
31 Unreserved Working Capital Year End 13,006,849 11,035,545 2,634,830 1,529,069 1,872,518 2,422,614 3,448,684
2023-25 Financial Plan
Budget Report Pg. 31 Page 119 of 241
Enterprise Funds: Transit
C4: TRANSIT FUND
Revenue
The City secured $12.4 million in American Rescue Plan Act (ARPA) funding for operational costs for the
Transit Fund. The $12.4 million was divided equally across three fiscal years beginning in FY 2022-23.
Reimbursement from the ARPA funding for operating costs incurred this fiscal year has not occurred, so
it is not reflected in the table below. Reimbursement in federal funds expended on capital projects has
occurred but was booked into Other Revenue / Interest, hence the significant difference between budget
and actuals.
State revenue is on track as budgeted since disbursement of funds occurs quarterly. Bus fare, which
constitutes fares paid on bus, pass purchases, and revenue from the City’s agreement with Cal Poly, is
tracking slightly above budgeted amounts. This is because Cal Poly’s agreement is billed and paid at the
beginning of each quarter. Other Revenue / Interest is tracking high even when adjusted for the incorrectly
programmed federal funds because interest on investment accrued so far is higher than anticipated.
Table 31 - Transit Fund Revenue
Operating Expenditures
Salaries expenditures are tracking high because the interim Transit Manager stayed on this fiscal year to
help onboard the new Mobility Services Business Manager. Contract Services expenditures are tracking
high because of open purchase orders for transit operations and maintenance services, as well as the fuel
services contract. Maintenance costs this fiscal year are higher than anticipated due to the aging fleet
operated by SLO Transit. Over half of the active fleet is at or beyond the 12-year useful lifespan standard
used by the federal government. Fuel costs are also higher than anticipated due to a continuing volatile
global market, increase in diesel taxes, and restoration of services which occurred in October 2023. Funds
were transferred from another operating line item to cover increased maintenance and fuel costs. The
transfer is cost neutral and does not affect staffing line items.
Revenue Type 2022-23
Actual Budget YTD Actuals %
Received
Midyear
Revised
Budget
Total
Midyear
Changes
1 Federal 4,083,165 7,571,830 631,726 8%7,571,830 -
2 Local (Bus Fare)806,521 990,000 477,543 48%990,000 -
3 Other Revenue/ Interest Revenue 446,998 13,579 59,918 441%13,579 -
4 State 379,078 3,179,564 1,549,497 49%3,179,564 -
7 Total 5,715,762$ 11,754,973$ 2,718,684$ 23%11,754,973$ -$
FY 2023-24
Budget Report Pg. 32 Page 120 of 241
Enterprise Funds: Transit
Table 32 - Transit Fund Operating Expenditures
Mid-Year Budget Changes
Transit is requesting an update to staffing costs as part of the new Mobility Services Division
reorganization. Transit will split direct costs of the new Mobility Services Deputy Director and Mobility
Services Business Manager positions as well as costs for an existing Administrative Assistant position. At
budget adoption, the Transit Fund budgeted 100% for both the Mobility Services Deputy Director and
Mobility Services Business Manager positions but will realize a savings of an estimated $148,431 this fiscal
year by allocating positions across the three programs. See the Parking Fund Summary, Section 5 above,
for more information.
Transit is also requesting a transfer of funds of $58,253 from Other Contract Services to temporary salaries
to cover staffing costs for the interim Transit Manager. The interim Transit Manager was not anticipated
to continue working through this fiscal year but stayed on to help on board the new Mobility Services
Business Manager.
Table 33 - Transit Fund Budget Requests
Budget Request Current Amount
Budgeted
Amount
Requested New Total
Regular Salaries and Benefits $456,758 -$148,431 $308,327
Temporary Salaries $1,000 $58,253 $59,253
TOTAL $457,758 -$90,178* $367,580
*Negative value indicating this is an appropriation of budget back to fund balance.
Long Term Forecast
The Transit program was approved to extend the existing transit operations and maintenance services
agreement with Transdev for an additional two years and to include hiring incentives for drivers. Staff is
in negotiations and will have an amendment to the Transdev agreement executed early 2024. Annual
contract cost increases will be included in the fund forecast for Supplement. The City’s two-year
agreement with Cal Poly for transit services expires at the end of this fiscal year. Staff will begin
negotiations in the new calendar year with an expectation of executing an agreement in Spring 2024.
In July 2023, staff received approval to issue a purchase order for six additional battery electric buses
(BEBs). The buses have an anticipated delivery date of Spring 2025 and an in-service date of fall 2025. The
two BEBs currently operated by the City will be monitored to determine electrical charging needs and
associated costs so that utility services expenses can be adjusted accordingly.
Transit Fund Operating
Expenditures FY 2022-23 Actual Budget Year-to-date Actual % Expended
1 Salaries 142,243$ 337,815$ 173,342$ 51.3%
2 Retirement/Benefits 18,121$ 74,554$ 41,448$ 55.6%
3 Contract Services 2,986,398$ 4,487,341$ 3,337,230$ 74.4%
4 Other Operating Expenditures 397,917$ 410,200$ 349,227$ 85.1%
5 PERS Unfunded Liability 35,615$ 45,388$ 44,728$ 98.5%
6 Transfers Out 365,544$ 463,491$ 231,746$ 50.0%
7 Total 3,945,838$ 5,818,789$ 4,177,720$ 71.8%
FY 2023-24
Budget Report Pg. 33 Page 121 of 241
Enterprise Funds: Transit
The Transit program also finalized the Transit Innovation Study in January 2024 and will submit Capital
Improvement Plan (CIP) project requests at Supplement to implement specific recommendations.
Table 34 - Transit Fund Five Year Forecast
(A)
Actual
2022-23
(B)
Budget
2023-24
(C)
Mid Year
Revised
2023-24
(D)
Forecast
2024-25
(E)
Projected
2025-26
(F)
Projected
2026-27
(G)
Projected
2027-28
REVENUE
1 Charges for Service
2 46601 - Bus Fare 206,521 240,000 240,000 250,000 260,000 260,000 260,000
3 46602 - Cal Poly Transit Agreement 600,000 750,000 750,000 750,000 772,500 795,675 819,545
4 Total Charges for Service $806,521 $990,000 $990,000 $1,000,000 $1,032,500 $1,055,675 $1,079,545
5 Other Revenue
6 44101 - Interest on Investment 117,310 13,579 13,579 13,851 32,815 27,131 43,472
7 44107 - Investment FMV (17,944) - - -
8 44310 - Miscellaneous Revenue 3,449 - - - - - -
9 45208 - TDA Revenue (60,272) 2,727,295 2,727,295 2,809,114 2,893,387 2,980,189 3,069,594
10 45209 - STA Revenue 430,628 443,547 443,547 456,853 470,559 484,676 499,216
11 45215 - State of Good Repair (SGR)8,722 - - -
12 45211 - Other State Grants - 8,722 8,722 8,722 8,722 8,722 8,722
13 45216 - Low Carbon Operation Revenue 344,183 - - -
14 45302 - FTA 5307 (Capital)1,339,692 3,471,830 3,471,830 3,575,985 3,647,505 3,720,455 3,794,864
15 45303 - FTA 5307 (Preventative Maint.)- - - - 210,765 214,980 219,280
16 45304 - FTA 5307 (Operating)2,743,473 - - - 1,694,054 1,727,935 1,762,494
17 45305 - Other Federal Grants - 4,100,000 4,100,000 4,100,000 - - -
18 Total Other Revenue 4,909,241 10,764,973 10,764,973 10,964,525 8,957,807 9,164,087 9,397,641
19 Total Revenue $5,715,762 $11,754,973 $11,754,973 $11,964,525 $9,990,307 $10,219,762 $10,477,187
20 EXPENDITURES
21 Total Salaries and Benefits $195,979 $457,758 $367,579 $326,312 $333,901 $340,348 $346,830
22 Contract Services
23 61011 - Maintenance 348,373 255,000 255,000 265,000 283,550 303,399 324,636
24 61013 - Other Contract Services 229,164 963,803 905,550 1,011,993 1,062,592 1,115,722 1,171,508
25 61016 - Purchased Transportation 2,387,952 3,078,597 3,078,597 3,693,446 3,863,962 3,979,881 4,099,277
26 62504 - Fuel 365,359 350,000 350,000 385,000 385,000 385,000 385,000
27 Total Contract Services 3,330,848 4,647,400 4,589,147 5,355,439 5,595,104 5,784,001 5,980,422
28 Total Other Operating Expenditures 31,425 125,713 125,713 124,513 124,513 128,248 132,095
29 Total Capital Asset Expenditures 2,430,996 5,300,669 5,300,669 3,794,674 4,260,629 232,295 4,152,812
30 Total Transfers to / from Other Funds 365,544 463,491 463,491 477,396 491,718 506,469 521,663
31 Total Expenditures 6,354,792 10,995,030 10,846,599 10,078,333 10,805,865 6,991,361 11,133,821
32 CalPERS ADP 12,555 12,555 12,555 12,555 12,555 12,555 12,555
33 Total Expenditures (After CalPERS ADP)6,367,347 11,007,585 10,859,154 10,090,888 10,818,420 7,003,916 11,146,376
34 Working Capital - Beginning 2,875,428 2,236,399 2,236,399 3,144,773 5,030,965 4,215,407 7,443,808
35 Change in Financial Position (639,030) 759,943 908,374 1,886,192 (815,558) 3,228,401 (656,635)
36 Working Capital - Year End 2,236,399 2,996,342 3,144,773 5,030,965 4,215,407 7,443,808 6,787,173
37 Operating Reserve (20%)711,650 1,046,174 1,016,488 1,161,253 1,210,704 1,250,519 1,291,869
38 Unreserved Working Capital Year End 2,948,049 4,042,516 4,161,260 6,192,218 5,426,110 8,694,327 8,079,043
2023-25 Financial Plan
Budget Report Pg. 34 Page 122 of 241
Department Updates
Section D: Department Performance Measure and
Work Program Updates
Budget Report Pg. 35 Page 123 of 241
Department Updates – Administration and IT
Administration & IT Department
Performance Measure Update
Objective Measure 2022-23
Actual
2023-24
Target
2023-24
Mid-Year
Provide City-wide
communications to the
community.
Strategic Goal: Citywide
Communications
Open City Hall Participant Satisfaction
Rating 94% 93% 92%
# of Pageviews for City News Pages 300,000 350,000 60,215 8
# of news email subscribers 3,400 4,500 3,438
Provides reliable IT resources
to the organization and
community.
Strategic Goal: Information
Technology
Maintain City Network Reliability Uptime
Status 99.9% 99.9% 99.9%
Data backed-up in Terabytes 9 173 173 173
Number of GIS layers maintained 915 920 920
Economic Stability
Strategic Goal: Economic
Recovery and Stability
Contacts with businesses regarding
starting, expanding, and/or staying in
the City
99 75 48
One-time funds used for direct aid to
local businesses and non-profits $495,000 10 $175,000 $350,000 11
Supports our commitment to
sustainability and provides
open space resources to the
community.
Strategic Goal: Climate Action,
Open Space, and Sustainable
Transportation
# of Green Team Meetings 10 10 5
# of Open Space Conservation Plans that
will guide the long-term protection and
stewardship of natural resource values
while guiding appropriate public use
1 1 1
Strengthens the City’s
commitment to advancing
Diversity, Equity and Inclusion
Strategic Goal: DEI
# of City-wide DEI Trainings Offered 3 10 3 12
# of DEI Newsletters for Staff 1 6 3
Funds for High-Impact DEI Grants
Awarded $300,000 13 $150,000 $150,000
8 Last year, we released more high-profile news than we have this year. However, a review of previous years shows
that this year’s actual pageviews is on par or even higher than similar years when we’ve released more typical
news.
9 Data previously measured in gigabytes; 1 terabyte (TB) equals 1,000 gigabytes (GB).
10 Includes one-time DEI Business Grants which expanded direct aid administered to the community.
11 Includes $225,000 for Buy Local Bonus, $25,000 for Childcare Grants and $100,000 for PCC grants.
12 Although fewer trainings have occurred, the trainings offered have allowed for larger numbers of staff to attend
totaling 52 this year with more planned in 2024.
13 FY 2022-23 High Impact Grants include $150,000 from the missed grant cycle in FY 2021-22.
Budget Report Pg. 36 Page 124 of 241
Department Updates – Administration and IT
Work Program Evaluations
City Administration
The first half of the fiscal year was a busy one for the Communications Program. The team sent out
more than 280 news bulletins (e-notifications) and saw an increased number of people who
participated on Open City Hall during this period. The number of visitors who participated in 11 surveys
on Open City Hall has been steadily increasing. The surveys had 3,769 visitors and 2,483 responses for
a 66% response rate. The survey with the highest response rate was the Park Local Program survey (of
the 1,173 visitors to that survey, 88% responded). While the overall satisfaction rating of Open City Hall
has declined slightly from 93% to 92%, analysis determined this was mostly dissatisfaction with the new
demographic questions and with parking services/rates rather than the survey tool itself. The
Communications Program also provided additional support to the Parking Services team during this
time period due to the increased need for communications around parking changes and rates. The
Communications Program will continue to support Parking Services and the Mobility Services Division
of Public Works over the next six months by supervising a contract for an in-house Communications
Coordinator. The Communications Program will also work with the Office of Sustainability and Natural
Resources on a Sustainable SLO campaign and with the Office of Diversity Equity and Inclusion to begin
implementing the proposed DEI Strategic Plan, pending adoption by City Council.
The City’s legislative Program advocated for the City’s interest on multiple items including support for
ACA 1, which if approved could help the City fund affordable housing. Staff presented the full 2023
State Legislative Summary to Council on January 9, 2023. Several grants have recently been awarded
to the City and over the next six months staff will be working with the City’s contracted grant writer on
a training to further educate staff on the grant application and support process. Staff are also preparing
for the 2024 Community Academy which is planned to start in April 2024 with the application period
opening in late January.
Cultural Activities
The City continues to support the City-County Library and the Performing Arts Center (PAC). The City
provides an annual contribution to the operating costs and funds various capital improvements for the
library. The City is also a partner with Cal Poly and the Foundation for the Performing Arts (FPAC) in the
operation of the Performing Arts Center. Operations are overseen by the Performing Arts Commission,
with the Mayor and the City Manager serving as the City's representatives. Administration staff and
the rest of the PAC partners are working on updating the operating agreement to reflect current
operations and respond to anticipated industry practices & local market conditions.
Economic Development
The Economic Development & Tourism program is a major contributor to the Economic Resiliency,
Cultural Vitality & Fiscal Sustainability Major City Goal. Currently all tasks and goals are ahead of or on
schedule unless otherwise noted. The department reorganization is progressing as planned. The key
programs including the Downtown activation programs, development of the new ARTober program,
the expansion of the Buy Local Bonus and Eat Local Bonus programs, and additional childcare grants
are all proceeding as anticipated.
Diversity, Equity, and Inclusion (DEI)
The Office of Diversity, Equity, and Inclusion (DEI) leads the implementation of DEI initiatives in
collaboration with various City departments. For the last couple of months, the Office of DEI has been
diligently working in developing the City’s first DEI Strategic Plan, which included a robust community
engagement process from September to November consisting of a community wide vision survey,
Budget Report Pg. 37 Page 125 of 241
Department Updates – Administration and IT
workshops in English and Spanish, and one-on-one interviews with community leaders. The Office of
DEI is scheduled to present to Council the complete strategic plan on February 20, 2024. Likewise, the
Office of DEI moved forward the HRC recommendations on the 2023-2024 DEI High Impact Grant
Program and received City Council approval for a total of eight (8) non-profit organizations to advance
DEI initiatives in the community. Internally, the Office of DEI is in the process of rolling out a new DEI
Leadership Training for all staff with an accompanying DEI Language & Resource Guide, and the DEI
Employee Committee continues to be more involved in community activities and to address internal
departmental projects and activities.
Sustainability & Natural Resources
The Office of Sustainability & Natural Resources leads the implementation of open space conservation
and planning, climate action, creeks and watershed protection, and community partnerships. Since the
beginning of the fiscal year, key activities have included continued open space protection efforts
including the completion of a suite of open space easements for the Froom Ranch Specific Plan area,
the adoption of a revised approach for new buildings decarbonization and a key study session on
options for addressing existing buildings, the award of the $400,000 Buildings UP prize through the
federal Department of Energy, the inclusion of the City of San Luis Obispo by the Carbon Disclosure
Project as an “A-List City”, continued implementation of recovery actions following last winter’s storm
damage to local creeks and tributaries and last fall’s Lizzie Fire, and ongoing support, partnership, and
work towards updates of agreements with numerous community partners.
Community Promotion
The Community Promotion work program, directed by the Promotional Coordinating Committee (PCC)
is directly tied into the work of the Office of Economic Development & Tourism and has implemented
several programs to enhance the quality of life for residents and the experience for visitors in our
community. Key program highlights include the community promotions grant programs (Cultural GIA
and Cultural Arts & Community Promotions) which awarded $100,000 total to 23 local nonprofit
organizations for programs and activities in FY24, the continued development and implementation of
the Neighborhood campaign including maps and promotional resources to support the economic
vitality of business areas downtown and beyond, the oversight of the Support Local campaign including
the Buy Local Bonus and Eat Local Bonus promotions, and the continued promotions of the arts
including the completion of the Art Starts With campaign and the development of ARTober and Piano
in the Plaza.
Tourism Business Improvement District (TBID) Program
The TBID, through Visit San Luis Obispo continues to promote travel to and within San Luis Obispo
including the implementation of the comprehensive Tourism Marketing and Business Plan resulting in
overnight stays in the city. The TBID is actively implementing a robust paid, owned and earned program
inviting visitors to the city mostly from drive markets statewide as well as fly-markets. While visitation
to the city has begun to slow somewhat when compared to the banner year in FY23 resulting in a minor
dip in occupancy and TOT, the City did maintain the collection of $1 million in Transient Occupancy Tax
each month during the first quarter of the year. A key program highlight to-date the fiscal year is the
launch of the redesigned VisitSLO.com – the site was a year in development. The TBID is anticipating a
typical slowdown in the shoulder season and will bring back the Mid-Weekend Spring Promotion in
February – March 2024 to offset those impacts.
Downtown Business Improvement District (BID) Program
The Downtown BID provides the resources to Downtown SLO to provide ongoing activation and
placemaking activities in the Downtown including Farmers’ Market, Concerts in the Plaza and the
Budget Report Pg. 38 Page 126 of 241
Department Updates – Administration and IT
Holiday Parade. In additional to the traditional activities the City has also partnered with the BID to
activate store fronts, add additional ambassadors and provide additional activations. City staff have
also worked closely with DSLO in the selection and onboarding of the new CEO.
City Clerk
The City Clerk’s office has been active throughout the first half of 23-24 on the implementation of
hybrid meetings for City Council and transitioning Advisory Bodies into our agenda management system
Escribe. Ten of the sixteen Advisory Bodies are now using Escribe to produce their agenda packets.
Since July 1st, the department has received and processed 171 public records requests which is
consistent with past request rates and for other benchmark cities. The Clerk’s office prepared agendas
for 16 City Council meetings, processed 176 Council Agenda Reports and prepared a total of 19 agendas
and packets for the Planning Commission, Architectural Review Commission, Cultural Heritage
Committee, Human Relations Committee, and Tree Committee.
IT - Network Services
This Fall, collaboration with Cal Poly concluded in the successful completion of the KVEC Radio Tower
construction project. Enhancements and expansions were made to the site, greatly amplifying radio
coverage capabilities.
The Control Systems Administrators continued their role in partnering with Utilities for the construction
of a new lift station at Calle Joaquin. Their responsibilities encompassed overseeing the design,
installation, and commissioning of SCADA systems, ensuring seamless operations at the facility.
Throughout the past six months, the IT Help Desk managed and resolved a total of 1,591 support tickets.
These tickets encompassed a wide spectrum of support activities, including hardware and software
installations, computer upgrades, and troubleshooting tasks.
IT - Information Services
During the recent Lizzie Fire emergency management and recovery efforts, the GIS Team played a
pivotal role by collecting data, including fire perimeter details and impacted properties. This
contribution significantly supported the recovery process.
In addition, the GIS Team marked Geography Awareness Week and GIS Day on November 15th, 2023,
commemorating these occasions with various activities.
Simultaneously, the Oracle Team is actively engaged in crafting a comprehensive program calendar for
2024. This calendar will highlight key milestones for the upcoming year and incorporate the
prioritization framework developed earlier this Fall.
Budget Report Pg. 39 Page 127 of 241
Department Updates – City Attorney
City Attorney
Performance Measure Update
Objective Measure 2022-23
Actual
2023-24
Target
2023-24
Mid-Year 14
Timely and Responsive
legal advice and support
Strategic Goal:
Department Objectives
Administrative Citation Appeals
Received by the City 110 120 56
Appeals closed without need of a
hearing 15 23 25 21
City assisted corrections to defective
appeals to allow access to hearing 6 15 9
City facilitated hearings on the record
without need for personal
appearance by Appellant
35 30 14
# of hearing days scheduled 16 1817 12 6
Legal Training &
Compliance
Strategic Goal:
Department Objectives
# of Council, Staff, and Advisory Body
legal trainings, legal updates, and
compliance advisory sessions
8 18 12 3
Municipal Claims,
Litigation & Prosecution
Management
Strategic Goal:
Department Objectives
Percentage of Claims Resulting in
Litigation 7.8%19 <5% 3.6%
Liability Claims Against the City
Reviewed/Managed 77 70 28
Number of multi-count complaints filed
for misdemeanor municipal code
violations 20
- 35 20
14 Projected actual as of 12/31/23.
15 Closed in some way that did not include a decision being issued (e.g., withdrawn by appellant, untimely filed,
voided by the issuing department)
16 If more than one hearing officer convened hearings on the same day, those are counted separately.
17 A hearing officer’s preference for less appeals heard on a single day led to more overall hearing days needing to
be scheduled.
18 Onboarding of multiple staff members and an extended leave of absence made it difficult to prioritize time for
the preparation of training materials.
19 Of the six claims that went to litigation, one is a private matter in which the City was named due to plaintiff’s
misunderstanding of HASLO and was dismissed; for two, the City is indemnified under terms of either an event
permit or a construction contract; the others are a personnel matter, a trip and fall at a City park, and an allegation
that code enforcement action reduced the sale price of a homeowner’s property, which the City assesses as
meritless.
20 New measure being tracked due to rise of volume and importance to the community.
Budget Report Pg. 40 Page 128 of 241
Department Updates – City Attorney
Work Program Evaluations
City Attorney
Legal Advice and Assistance. This has been a claims-and-litigation-intensive year to date, with litigation
defense, settlement negotiations, and discovery related activities consuming significant resources and
demanding coordination and contributions from interdepartmental staff and leadership throughout
the organization. The highest resource demand cases have been: the Langley federal court matter,
alleging misapplication of evolving laws surrounding occupation and storage of property in public
spaces by unhoused individuals; the Wichman matter, a meritless, but persistent, federal court action
by the relatives of Eddie Giron, arising out of his suicide following his murder of SLOPD Officer Luca
Benedetti in the course of an investigation into a series of thefts by Mr. Giron; two related state and
federal court Orcutt actions, alleging misconduct by a City-employee witness and City investigators
arising out of the investigation and arrest of the plaintiff for allegedly making racist threats against real
property managers and real estate agents (the underlying criminal case was ultimately dismissed by
the DA and the City prevailed at both trial and appellate courts in both the state and federal courts and
is seeking to recover fees in the state court action); the Littlejohn matter alleging violations of civil
rights and diminished property value related to a City code enforcement inspection; several personal
injury or wrongful death cases arising out of trip and falls or traffic collisions occurring on City streets
and sidewalks; several property damage claims arising from flood damages to private properties; a
California Voting Rights Act demand that the City transition to district-based elections and related
settlement negotiations; a receivership action filed to remediate serious health and safety concerns on
a private property located at 48 Prado Road; a code enforcement action and related administrative
appeals and a writ filed by the owner of 4080 Horizon related to violations of creek regulations; several
personnel and labor negotiations and grievance matters; and evaluation of a successful legal challenge
to the City of Berkeley’s electric building regulations and responsive actions to suspend and amend City
ordinances, pending resolution of litigation against Berkeley.
Additionally, City Attorney staff has provided legal support to staff on various Capital Improvement,
real property, community partnership and development review matters, including: mediation of
development agreement disputes arising out of the San Luis Ranch and Avila Ranch project approval
implementations; negotiations regarding the implementation of the 600 Tank Farm project and the
Tank Farm Roundabout improvements; objections to the City’s application of housing and ADU laws,
including SB 9, Housing Accountability Act and Density Bonus Law amendments; updates to various
affordable housing agreements; negotiation of Mid-Higuera Bypass easements and Froom Ranch
easements necessary for annexation; assistance with negotiation of Acquisition Agreements with East
Airport Annexation Area, necessary for participation in the SCIP funding program; acquisition of 1106
Walnut and 1166 Higuera properties for City use; legal advice related to Welcome Home Village,
HomeKey, and City safe parking projects; Surplus Land Act compliance issues; and non-profit partner
agreements, including SLOMA, SLO Rep, HASLO, TMHA, People’s Self Help Housing, and the Downtown
Association.
In the coming months staff will be working to defend and/or resolve outstanding claims and litigation
matters, provide legal support to collaborative regional solutions to homelessness, provide training to
staff on emerging and evolving development, public safety, public contracting, tax-and-fee, and
housing laws, conclude code enforcement matters affecting public and environmental safety and
neighborhood wellness, conclude outstanding personnel matters, update City contract templates, and
provide legal support for and conclude right of way acquisitions necessary to implement important
public and private development projects.
Budget Report Pg. 41 Page 129 of 241
Department Updates – City Attorney
Administrative. During the first half of the fiscal year, the City Attorney’s Office has worked to fill
vacancies in support positions created by two resignations near the start of the year. The Legal Assistant
I recruitment was a success, and the new staff member in that position is learning quickly and
contributing to important projects, like the complete overhaul of the department’s task management
system (an effort conceived and led by our other legal assistant who has only been in position since
April). The first Paralegal recruitment did not result in a hire, so the second attempt is being held open
longer than usual (opened just before Thanksgiving and will close near the end of January) to maximize
the potential for a positive outcome. During this transition period, remaining staff have redistributed
the workload and continue to complete their support of discovery and claim responses, coordination
of the administrative citation appeal and criminal misdemeanor complaint processes, support of the
attorneys and Human Resources staff in multiple personnel matters, and allocation of review and
production of records for requests under the California Public Records Act. The Paralegal vacancy has
had the biggest impact on review and production of records since being lead on those duties are a large
part of that position’s assignments. However, our newest staff members (both legal assistants) have
taken on two of the most voluminous requests (one with an initial batch of over 600,000 potentially
responsive records, now down to 11,000 after months of work, and the other with an initial batch of
180,000 items) freeing up other staff members to focus on other voluminous and time intensive
requests.
The biggest administrative projects planned in the department for the second half of the year are the
review of approximately 140 boxes of paper records being held in storage (to scan documents for
retention or request destruction for documents overdue for processing) and coordination with criminal
justice and social services partners on the processing of misdemeanor citations. Since the Police
Department hired a team of Community Service Officers to patrol downtown, the number of citations
issued for violation of the municipal code has doubled. These citations are issued to address criminal
misdemeanor activities impacting the experience and perception of safety in the downtown but can
also be a tool for City Attorney’s Office staff, in collaboration with community partners, to connect
more effectively those in need with supportive and rehabilitative services. Along with working to make
the misdemeanor complaint process more effective and efficient, staff will also be moving it from a
largely paper-based process to a digital one, an effort begun earlier in the year, but requiring correction
of technical issues and further coordination and refinement of processes for receiving citations from
Police Records and for filing complaints with the court.
Budget Report Pg. 42 Page 130 of 241
Department Updates - Finance Department
Finance Department
Performance Measure Update
Objective Measure 2022-23
Actual
2023-24
Target
2023-24
Mid-Year
Enables & enhances transparency,
accountability & integrity.
Strategic Goal: Fiscal Policies
# of calendar days
following year-end until
ACFR is issued
168 170 170
# of audits/reviews
conducted/ # of
additional agreed upon
procedure audits
performed
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
Net annual direct debt
per capita (General
Fund 21)
$395 $395 $395
Twelve-month total rate
of return/City portfolio 22 0.76% 3% 3%
Work Program Evaluations
Finance Administration
Finance Administration oversees the management and administration of the City's finance operations.
The Division includes the Finance Director, a half-time Administrative Assistant (supplemental through
the end of FY 2023-24), and a half-time Financial Analyst/Oracle Subject Matter Expert (currently
vacant). On September 13, 2023, the City officially closed on a lease revenue bond financing for the
Cultural Arts District Parking Structure; the closing was the culmination of many months' worth of work
by staff within the Finance Department as well as staff from other departments. In addition, the
Department continues to have a significant workload associated with recovery from the severe winter
21 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 capita
limit.
22 Based on the June 2023 Investment Report. The City aims for a long-term rate of return of 3%, but market vola�lity
can cause swings from year to year. The 0-5 Treasury Index measured a twelve-month rate of return of 0.42%;
therefore, the City’s por�olio performed slightly beter than the index in FY 2022-23. As a government en�ty, the
City’s primary investment objec�ve is to achieve a reasonable rate of return on public funds rather than the maximum
genera�on of income, which could expose the City to unacceptable levels of risk.
Budget Report Pg. 43 Page 131 of 241
Department Updates - Finance Department
storms in January and March 2023, which have resulted in an estimated $35 million of unanticipated
costs to the City, related to emergency protective measures, debris clean up, and work to permanently
repair damages to the public right of way and City infrastructure. Both the lease revenue bond financing
and work with FEMA to seek reimbursement for unanticipated storm costs has taken attention away
from continuous process improvements, but the Department has remained on track in addressing core
services and objectives. In FY 2022-23, the Department kicked off an organizational assessment to
determine the most appropriate organizational structure for the Department, given current needs. The
assessment is also intended to provide greater flexibility in the assignment of work, as well as
opportunities for staff development. The assessment is close to wrapping up and has resulted in the
reclassification of positions as noted below, to enable the Department to better support the needs of
the City organization. The department currently has a half-time Financial Analyst for Oracle support.
This position does not provide sufficient capacity to make timely progress in addressing the
configuration changes needed to achieve desired compliance or system enhancement requests. These
activities will continue to be delayed, particularly as the position is now vacant and recruitment of a
half-time resource with the necessary skills and knowledge is unlikely in the current job market.
Budget
The Budget division coordinates and oversees of the City's annual budget, quarterly financial reports,
and two-year financial plan development. The budget division has remained nimble over the last
several years of economic volatility with careful budget management and fiscal forecasting. The City
Council adopted the 2023-25 Financial Plan in June 2023. In mid-September, the Principal Budget
Analyst moved into a new position in City Administration but has continued to support the Finance
Department on critical budget related tasks. A new Principal Budget Analyst joined the team in mid-
January and is getting up to speed.
Revenue Management
The Revenue Management division oversees the collection and accurate recording of the City’s fee and
tax revenues. As part of the broader organizational assessment, the division recently reclassified one
of its Accounting Assistant positions to a Finance Cashier which will be primarily focused on receiving
payments, responding to customer inquiries, and assisting other departments will billing. This new
position was filled in January. The second Accounting Assistant is planned to be reclassified to a
Financial Specialist which will have responsibility for more advanced customer inquiries, monitoring the
many functions of the Revenue Management division to ensure that things are being done both in a
timely and accurate manner and assist the Financial Analyst with long-term projects that will improve
the division. The division has not had consistent and complete staffing for a year and once the team is
fully staffed, it will focus its efforts on business license and tax certificate enforcement. This includes
enforcement of unregistered short-term rentals.
Purchasing
The Purchasing division coordinates the City’s competitive bidding and contract routing procedures and
in the first half of FY 2023-24 has posted 21 formal requests for proposals and routed 139 contracts.
The division reviews and audits all City purchase orders and contracts for policy compliance and has
processed 1,824 purchase orders in the first half of FY 2023-24. In addition to day-to-day duties, the
division is also responsible for leading documentation efforts related to unbudgeted costs incurred due
to the 2023 January and March storms. The storms caused significant damage to City infrastructure,
resulting in an estimated $35 million of costs. The Financial Analyst in Purchasing is currently working
with a disaster recovery consultant that is providing technical assistance and has broken the damages
into 67 projects to be submitted to FEMA and CalOES for review and consideration of reimbursement
(due to Federal and State emergency declarations, the City may be able to secure reimbursement for a
maximum of 93.75% of eligible expenses). As of the end of 2023, the City has submitted 14 projects
Budget Report Pg. 44 Page 132 of 241
Department Updates - Finance Department
for review by FEMA and expects to have an additional five projects submitted in January. Significant
delays have occurred due to a lack of clarity from FEMA about the information required and FEMA
Program Delivery Manager (PDMG) turnover, and we expect these challenges to continue. The division
is also continuing to work with FEMA to obtain reimbursement for COVID-19 expenditures and has
submitted $646,830 in costs associated with the pandemic response. The Financial Specialist position
was filled in December 2023 after having been vacant since January, and this additional capacity will
enable the division to do more analysis on purchasing and procurement to enable the City to achieve
maximum value for its purchases.
Accounting
The Accounting division has completed the preparation of the audited financial statements for FY 2022-
23 and has, again, submitted the report to GFOA for the Excellence in Financial Reporting Award. The
payroll function issued all W2s and year-end tax reports timely. Other accounting activities include the
preparation of the annual Cost Allocation Plan and supporting departments in processing vendor
payments. The division also assisted with the issuance of the CADPS bonds and associated implications
on the City’s financial statements and has been continuing to support storm project accounting. As
part of the broader organizational assessment, the Accounting Manager/Controller position was
reclassified to Deputy Director of Finance/Controller, as it was determined that the position was
performing duties similar to those performed by other Deputy Director level classifications in the City
organization.
Support Services & Non-Departmental Expenses
Support Services and Non-departmental divisions are in place to help effectively budget and account
for Citywide costs not associated with a specific operating program or project. Both elements are
generally on track in the current year, but the Non-Departmental Expenses budget will be adjusted to
account for an increase in credit card merchant fees. The program budget is primarily made up of
contingency budget that is only activated when a department is faced with salary cost increases due to
bargaining unit results, minimum wage increases, or unexpected vacation buyouts that cannot be
absorbed within the department's appropriated budget. The contingency amount is determined based
on Council's approved parameter amounts.
Budget Report Pg. 45 Page 133 of 241
Department Updates – Human Resources
Human Resources Department
Performance Measure Update
Objective Measure 2022-23
Actual
2023-24
Target
2023-24
Mid-Year
Integrated HR
Services
(Strategic Goal)
Average days between injury and
Workers’ Compensation claim filed. 4 3 4
Achieved lower severity of Workers’
Compensation claims than the risk pool Yes Yes Yes
Annual liability claims payment under
the Self-Insured Retention amount. No Yes Yes
Employee
Development &
Growth
(Strategic Goal)
Percentage of On-Time Employee
Performance Evaluations 92% 95% 98%
Percentage of Internal Promotions 35% 40% 45%
Training Sessions Coordinated 15 20 8
Engaged and
Aware Culture
(Strategic Goal)
Number of Policies Communicated 80 75 88
Informational Sessions Coordinated 266 200 123
Work Program Evaluations
Human Resources Administration
Human Resources plays a pivotable role providing comprehensive organizational support in various
domains, including benefits administration, risk management, compensation, recruitment, labor
relations, performance management, training and development, and legal compliance. While
continuing to meet the needs of the organization, the Human Resources team has experienced
instability in staffing levels within the department. All employees within the department have been in
their role for 2.5 years or less and the HR Manager position remains vacant despite multiple recruitment
attempts. Additionally, one HR Specialist position is vacant following an internal promotion.
The department continues to experience a noticeable increase in the volume of recruitments, labor
issues, and performance management issues. This is in part due to the increased number of positions
added over the last two years, the impact of the Great Reshuffle, the dynamic and changing workforce,
and other external factors. Additionally, there is an increased level of requests for classification review,
leaves of absence, disability accommodation, and benefits changes.
In the last six months, three notable achievements standout: (1) the successful negotiation of a
successor Memorandum of Understanding with the Firefighters Union, (2) hiring or promoting 70
Budget Report Pg. 46 Page 134 of 241
Department Updates – Human Resources
employees, representing approximately 15% of the organization, and (3) several enhancements made
to employee benefit offerings and to the open enrollment process.
To adapt to these evolving conditions, the department has had to make strategic decisions, including
temporarily slowing down process improvements. This intentional shift in focus allows the team to
channel efforts towards sustaining and maintaining a foundational level of service while ensuring strict
adherence to legal compliance standards. This approach enables the department to effectively navigate
the increased workload and challenges associated with the changing organizational landscape.
Complicating matters further, new legislative mandates effective January 1, 2024, have necessitated
updates to policies and system configurations, compounding the department’s existing workload.
Despite these challenges, the Department continues to partner with the Centre for Organization
Effectiveness to provide professional development opportunities for employees and supervisors across
the organization and implement enhancements based on the 2023 Employee Engagement Survey.
Additionally, staff continues to promote enhancement of the Oracle Human Capital Management
system.
Wellness
The Wellness program supplements the Risk Management program by providing employees tools and
education to improve their physical and emotional well-being, thus enhancing employee productivity
and performance. Mental health services through The Counseling Team International (TCTI) are being
offered to public safety employees, geared toward the unique challenges of their profession. The City’s
SLO Healthy and Smart (SLO HAS) Committee has hosted gatherings for City employees to network and
share ideas. They will continue to work on advancing the healthy and smart culture across the
organization. The functional mobility program at the Fire and Police Departments continues to promote
safety and targets a reduction in workplace injuries. The Employee Assistance Program (EAP) through
Aetna Resources for Living continues to be available to all employees. Voluntary programs like Yoga
and Chair Massages have been put on hold due to instructor availability.
Insurance Fund
The Insurance Fund is a sub-fund of the General Fund that is used to pay insurance-related expenses
and maintain reserves for current claims, potential settlements, and insurance premiums. Within the
Fund is an account for paying claim expenses up to the Self-Insured Retention (SIR) limits of $500,000
each for liability and workers’ compensation. The shift to the SIR model for workers’ compensation
happened on July 1, 2023, reducing up front premium costs. The number and severity of claims appear
lower than prior years, but it is too early to tell the overall trend as claim costs develop over time. The
City also began using a new third-party administrator, Athens, in January 2023 and that has been a
smooth transition. At mid-year, 3% of the SIR account for workers’ compensation has been expended,
indicating far lower than anticipated costs for this point in the year. However, this is a phenomenon of
being in the first six months of the program and only reflects the costs of new claims since July 1, 2023.
Costs for these claims will develop over time. For liability, 54% of the SIR account has been expended,
indicating that costs are as predicted for this point in the year. Remaining funds are expected to be
adequate to cover expenses through the remainder of the fiscal year for both workers’ compensation
and liability. The minimum budgeted fund balance was established to withstand fluctuations in
expenses and reflects a 75% confidence level based on trends over the previous five years. To predict
Budget Report Pg. 47 Page 135 of 241
Department Updates – Human Resources
future increases, staff tracks market trends and conditions that affect insurance rates and periodically
performs root cause analyses to identify ways to reduce injuries and accidents. Staff regularly reviews
contracts to ensure City partners and vendors maintain adequate insurance coverage that extends to
the City.
Budget Report Pg. 48 Page 136 of 241
Department Updates - CSG
Community Services Group (CSG)
Community Development • Parks & Recreation • Public Works • Utilities
The Community Services Group is comprised of the City’s four public-facing, service departments. The Community
Services Group Administration team did not have official performance measured identified as a part of the Financial
Plan 21-23 but will identify and outline those as a part of the next Financial Plan.
Work Program Evaluations
Community Services Group Administration
The CSG Administration team provides oversight and support on the production of core services,
advancement of Major City Goals and objectives, identification of new departmental efficiencies,
communication with the public, policy research, and City staffing transitions. The CSG Admin team
consists of the Assistant City Manager, Business Services and Administrative Manager, Infrastructure
Investment Financial Analyst and full-time Administrative Assistant; with oversight of the Analysts in
the CSG Departments. The first two quarters, the CSG Team focused on supporting the transitions of
the retirements of the Community Development Director and Assistant City Manager, including the
creation of onboarding materials and preparation for the new incumbents. The new CSG Analyst Team
has focused on budgetary support as Fiscal Officers for their respective departments, including
facilitating training for new employees on Budget and Oracle 101 and the creation of a Budget 102. In
addition, analysts for CSG consistently report updated department budget information to managers
and supervisors to reference and assist in tracking their budgets. CSG Admin implemented a centralized
resident engagement platform, AskSLO, in Fall 2022, and has been consistently working on refinements,
improvements and feedback gathered from staff and the community to make the tool more user
efficient and friendly. Policy work has focused on the Shopping Cart Ordinance implementation,
including coordination of proactive and reactive shopping cart retrieval and business plan submittal
review and most recently enforcement. Additionally in the last two quarters, CSG Admin has partnered
in supporting Parking, particularly in project managing the acquisition of the 1166 Higuera Street
property. Lastly, CSG has been and continues to be focused on the 5-year Citywide User and Impact Fee
Study in data gathering, applying updated methodology and analysis to ensure the capture of cost of
services. CSG Admin has managed and guided significant efforts focused on partnerships and project
management to support critical programs within CSG Departments, recruitments, and creating new
processes to collaborate across CSG departments.
Budget Report Pg. 49 Page 137 of 241
Department Updates – Community Development
Community Development Department
Performance Measure Update
Objective Measure 2022-23
Actual
2023-24
Target
2023-24
Mid-
Year
Affordable housing
production
Strategic Goal:
Housing
Number of affordable housing units
secured through entitlements or
construction
147 50 1 23
Provide Excellent Customer
Service
Strategic Goal:
Other Department
Objectives
Customer survey response positivity
rate 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
79% 85% 53%24
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.
75% 75% 78%
Building Permit Review
activities
Strategic Goal:
Economic Stability
Percent of building permit reviews
completed within established cycle
times
NA 85% 59%25
Work Program Evaluations
Community Development Administration
The Administration team continues to provide process management and support for all the divisions
within the Community Development Department. The division also supports the Department’s advisory
bodies and Major City Goal work programs. Administration provides internal customer service by
23 CDD anticipates that 60 affordable housing units will be secured through approved entitlements in
January 2024 as part of the Avila Ranch Sendero Apartments project.
24 Code Enforcement saw an increase in investigation requests and was not fully staffed to handle the
increase in demands. The percentage of cases investigated on time is expected to increase due to new
hires, and Code Enforcement should be fully staffed by January of 2024.
25 This is a new measure for Building & Safety. Building and Safety is still developing metrics to establish
cycle times within an automated process. On average, customers experienced a one-day delay in permit
processing during the first two quarters.
Budget Report Pg. 50 Page 138 of 241
Department Updates – Community Development
maintaining SharePoint pages and content, which are currently undergoing an overhaul. Externally
supporting customer service via the phone while our online platform, Citizens Self-Service Portal, allows
customers to schedule inspections at any time while not being limited to the Department’s hours of
operation. The division experienced recruitment challenges in the past, which delayed the digitizing of
a backlog of permitting documents for easier access to city customers. Administration is now resuming
this work effort to ensure ease of information and transparency for the public. Administration is
currently undertaking a front counter user assessment by gathering input on front counter needs. This
effort will inform a remodel to make it easier for customers to interact with staff and provide a more
customer-focused experience, which is anticipated to be completed by the end of the Fiscal Year 2023-
24. This also includes the development of a transparency reporting dashboard that will be displayed in
the permit center to enhance public awareness about important updates in the Department and
provide customers with information related to processing and wait times.
Planning
The Planning Division continues to serve our community by processing planning entitlements, building
permit application reviews, cannabis program implementation, and housing and homelessness-related
work. Planning has made process improvements to support housing production and economic
development, allowing certain projects to move forward with a timelier and streamlined review of
entitlements. Work efforts have begun on key Housing & Homelessness Major City Goal work program
tasks, including the initiation of an update to the Margarita Area Specific Plan, an initiation of an update
to the Airport Area Specific Plan, the development of a scope of work to update the City’s parking
requirements, ongoing implementation of the Homelessness Response Strategic Plan and preparation
of a Request for Proposals to update the City’s Historic Resources Inventory. Planning cycle times for
application reviews continue to exceed the 75% target goal. The beginning of the fiscal year through
the end of the second quarter was steady, with minor dips in planning activities typical for October,
November, and December. The Planning division experienced recruitment challenges at the beginning
of the fiscal year but, by mid-year, hired a Cannabis Business Coordinator, an Assistant Planner, and a
Community Development Climate Fellow. The division is actively recruiting an Associate Planner and
an Urban Forestry Coordinator.
Engineering The Engineering Division plays an important role in the Development Review process, ensuring that
public improvements required to support private property development are designed to City standards.
In addition, the Engineering Division reviews grading, and drainage plans to ensure that stormwater
management is consistent with the City’s Drainage Design Manual. The division evaluates planning
applications and building permits for compliance with stormwater management, in addition to the
direct applications received for subdivision map checks and Public Improvement Plans. The Engineering
Division plays a major role in facilitating housing production in the city. It supports the Housing and
Homelessness Major City Goal by providing plan check and mapping services for projects such as Avila
Ranch, San Luis Ranch, Froom Ranch, Righetti Ranch, Bullock Ranch, 600 Tank Farm Road, 650 Tank
Farm Road, 1150 Laurel Lane, three HASLO projects (Anderson Apartments, 287 Bridge Street, and 1422
Monterey Street), as well as numerous Senate Bill 9 urban lot splits and Accessory Dwelling Unit
applications. This division started the fiscal year with significant staffing shortages but has since refilled
key positions with a mix of full-time employees, supplemental part-time temporary employees and
contracted services. While the hiring climate is challenging, the following positions were filled in the
CDD Engineering division: Engineer I, Permit Technician I, Engineering Technician III, Senior Civil
Engineer (full-time regular), and Senior Civil Engineer (supplemental part-time temporary), which
position will remain open until it can be filled with a full-time regular employee. Filling these positions
resulted in immediate improvements to customer service and project processing times for CDD
Engineering.
Budget Report Pg. 51 Page 139 of 241
Department Updates – Community Development
Building and Safety
Code Enforcement: The Code Enforcement team promotes community health and safety by increasing
awareness of City policies and investigating reported code violations. The mid-year monthly average
open code enforcement cases were approximately 246, and code enforcement staff responded to 493
investigation requests. The City Council held a study session on October 3, 2023, to provide an overview
of the division's work and discussed the development of the Safe Housing Program. Code Enforcement
has hired a Code Enforcement Technician II (Safe Housing Specialist) who is working closely with Cal
Poly’s Off-Campus Housing Program Coordinator to develop rental housing educational materials and
programs. Code Enforcement will hire a Code Enforcement Technician I dedicated to Neighborhood
Services by the beginning of third quarter.
Building Inspections: The number of building inspection requests has remained high, with over 3,600
inspections conducted since the start of the fiscal year. The team has become efficient in providing
timely inspections because of consistent staffing and technology upgrades. The building inspection
team is fully staffed and supplemented by a consultant inspector stationed at and funded by the San
Luis Ranch Development. On average, the building inspection team, which consists of one supervisor
and three inspectors, conducts over 150 building inspection per week. Notable projects that have
received final inspection include the Tesla Service Center and the Nordstrom Rack tenant improvement
in the Madonna Plaza Shopping Center. Furthermore, a temporary certificate of occupancy has been
issued to People’s Self-Help Housing on Broad Street for 36 affordable units and a community center.
Another notable project in downtown, the renovation of the Anderson Hotel, is currently framing out
accessible units on each floor and has completed the seismic strengthening of the foundation walls in
the basement.
Permits: Building permit activity has remained high and is consistent with last year's numbers. The front
counter received over 849 new building permit applications and an additional 156 fire permit
applications. 857 building permit applications completed the review process during the same time. 223
of those building permits issued were for the installation of solar panels, almost half of which were
processed through SolarAPP+. The City’s investment in the implementation of SolarAPP+ has proven to
benefit residents by expediting the application process and has so far saved the City $13,000 in
consultant fees this fiscal year alone. Notable projects that have recently been submitted include two
mixed-use projects in the downtown, which, together, will bring 34 dwelling units to the downtown. In
total, permits issued in the first half of this fiscal year have added 167 new dwelling units to the City.
Housing Policy and Programs
Homelessness Response staff have been working with community partners including the County of SLO,
Peoples Self Help Housing (PSHH), and the Housing Authority of SLO (HASLO), to move forward two
projects that would rapidly provide approximately 150 units to house and provide wrap-around services
to unsheltered individuals and families; the Welcome Home Village and the Calle Joaquin Homekey
projects. Staff have updated and streamlined encampment clean ups, including and revising protocols
for internal and external requests and those coming through Ask SLO, in alignment with the City
Compassionate Assistance Mitigation and Prevention (CAMP) standards. Recruitment was successful
for the position of Administrative Specialist for Homelessness Response. On the outreach front,
Homelessness Response staff have distributed over 1,000 updated pocket guides (in English and
Spanish) in the fall, provided direct outreach to downtown businesses with Community Service Officers,
and responded to ten media and 27 community partner and business group invitations to speak to
organizations about City Homelessness Response. Staff have continued to build a list of potential public
and faith partner sites for the Rotating Overnight Safe Parking Program and will consider starting the
Budget Report Pg. 52 Page 140 of 241
Department Updates – Community Development
program once 6-12 sites are identified and permitted. Additionally, an application has been submitted
and will be considered by the Planning Commission in January for an expansion of the overnight safe
parking program at the 40 Prado Homeless Services Center. The Housing team, in collaboration with
the City’s third-party “Below Market Rate Housing” administrator, Housekeys, continue to assist placing
eligible applicants into units, including running an average of three opportunity drawings per month.
This is in addition to transactions for multi-family apartment projects managed directly by partners
PSHH and HASLO. A Downpayment Assistance Program was established for the Avila Ranch
Development in accordance with the Development Agreement. Two loans have been distributed and
the City’s BEGIN program awarded two households with downpayment assistance. Three Below Market
Rate Housing escrow closings are being processed for December 2023 or January 2024, including the
Maxine Lewis, Bridge Street and Broad Street Place projects. Regionally, the Housing and Infrastructure
Plan was approved by the San Luis Obispo Council of Governments, that lists projects, many in SLO, that
promote housing production as priorities. On the State level, the City has earned enough points through
evaluation of housing programs to be eligible as a Pro-housing jurisdiction which enables access to
incentive funds and prioritizes the City for specific grants. Although we anticipate news from the state
that we were selected, we will not be sure until the third quarter.
Budget Report Pg. 53 Page 141 of 241
Department Updates – Public Works
Public Works
Performance Measure Update
Objective Measure 2022-23 Actual 2023-24
Target 2023-24 Mid-
Year
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 75 75 76
Bicycle network in total miles
(Class I/II/III/IV) 14.5/31.3/
25.3/1.5 14.6/31.0/
25.1/2.8 14.5/31.3/
25.3/1.5
Street miles maintained 134 134 143
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 13,030 13,080 13,120
Total acreage of park inventory 582 584 26 584
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 $28M $97M 27 $100M
26 The 2023-24 park acreage inventory includes the addition of North Broad Street Park and Parks A, B, and C in
Avila Ranch.
27 Reflects the value of the CIP managed by Public Works Operating Programs
Budget Report Pg. 54 Page 142 of 241
Department Updates – Public Works
Work Program Evaluations
Public Works Administration
Over the last six months, the Public Works Administration program effectively met its core services and
objectives. The division recently reclassified its Business Analyst role to Senior Business Analyst, to
address the many fiscal complexities of the department, which includes enterprise funds, the Capital
Improvement Program, and the newly formed Mobility Services Division. This position will continue to
provide support to the Mobility Services Business Manager and CIP Administrative Manager roles, while
addressing the day-to-day fiscal needs of the department.
In Q1, the department focused much of its resources on Storm Recovery and Parking Services
Management as well as a continued focus on staffing structures and hiring, including implementing a
significant, multi-phased divisional reorganization, combining its Parking, Transit and Active
Transportation programs into a new Mobility Services Division to enhance internal services and
collaboration, leverage available resources, address current workload needs, and enhance customer
service experiences. This effort included the hiring of a Deputy Director of Mobility Services and
Mobility Services Business Manager in Q1. Staff continue to implement the restructure of the new
Mobility Services Division, which includes allocating positions across the three programs and pursuing
operational efficiencies through shared use of resources. Additionally, the department began and
completed a recruitment for the vacant CIP Administrative Manager that will lead the CIP Review
Committee and support of the CIP Program.
Parks Maintenance
The program is categorized as yellow due to increased workload demands on limited staff and the
rising costs of playground part replacements. The Parks Maintenance program has continued to
successfully provide the community with safe facilities and well-maintained parks. The Crew
Coordinator recently retained a Certified Playground Safety Inspector, who along with the Supervisor,
implemented a more robust playground inspection program for staff to routinely complete. This
division has also contracted mowing services for select parks, allowing staff to focus more time on
addressing aging infrastructural needs within those parks.
Staffing vacancies and increased workload continues to put a strain on existing staff. The program made
staffing adjustments in September after an FTE vacancy to ensure appropriate coverage. Project volume
has increased over the past six months, requiring staff time for development review of City and private
projects. Due to supplemental staff vacancies, full-time staff have been required to work overtime to
provide Farmer’s Market restroom support, which will likely continue through the rest of the fiscal year
due to the difficulty of filling supplemental positions. In November, the program increased its focus on
providing ADA compliance upgrades. Despite these challenges, service requests are being prioritized
and addressed in a timely fashion.
As the City’s playgrounds are aging, the maintenance of playground equipment continues to require
more time because of failing parts. Due to its high impact to user safety, staff has been prioritizing this
need. However, the high cost of playground parts is impacting the program’s budget and resulted in
less material used during turf renovations. Staff will look toward the broader Public Works budget to
support this need in the short-term and will request additional funding in the coming fiscal years. Since
July, the program also assumed maintenance of three new parks, with a fourth under construction.
Three of the new facilities have playgrounds. Due to the increased number of playgrounds and aging
Budget Report Pg. 55 Page 143 of 241
Department Updates – Public Works
playgrounds, daily and monthly playground inspections require more resources. The program has
shifted more resources towards inspection needs and is outsourcing custodial services at four parks.
The program will require more resources in future financial plans to maintain recently added parks in
order to maintain these facilities to community expectations.
Overall, the Parks Maintenance budget is on track, but special attention will be given to balancing
workload, and prioritizing playground safety repairs.
Swim Center Maintenance
The Swim Center Maintenance program continues to provide a safe and clean aquatic facility for the
community’s use while remaining on track with its budget. Because a large percentage of the program’s
operating budget is for utilities and supplies, there is some concern that inflation and other economic
factors may cause costs to rise above initial projections. Staffing levels have remained relatively stable,
with one full-time Maintenance Technician and one supplemental part-time position. The program
successfully completed its annual maintenance closure in August, which included an LED lighting
retrofit inside the main bath house, replacement of the motor and pump in the therapy pool and a
rebuild of the backwash valves in the main pool filtration system.
The SLO Swim Center transitioned from using hydrochloric acid alone for pH control to a balanced
system combining CO2 and acid. The previous acid usage reduced pool water alkalinity, requiring the
manual addition of sodium bicarbonate. The new system has stabilized total alkalinity, reducing the
total acid volume used by 50% and eliminating the need for weekly sodium bicarbonate addition.
Despite increasing chemical costs, the CO2 system saved the program $13,000 in the past year and has
enhanced water balance and quality. Staff is also currently working on replacing and upgrading the acid
storage tank with a new system to neutralize vapors/fumes created by muriatic acid in the swimming
pool equipment room.
Urban Forest Services
The Urban Forest Program continues to operate in a limited staffing capacity, maintaining 13,120
inventoried tree assets valued at over $39 million. The program currently staffs a retired annuitant who
performs young tree care maintenance; all other services are contracted out. With the support of
Council, the program is recruiting two full-time Urban Foresters, which has been challenging. After a
failed recruitment in November, a second recruitment will begin sometime in January with additional
hiring incentives to assist in recruiting qualified staff. Urban Forest staff is optimistic that the pending
recruitment will guide the program back on track.
Facilities Maintenance
The Facilities Maintenance team, comprised of four full-time technicians and a supervisor, efficiently
maintains approximately 242,000 square feet of buildings five days a week. The program outsources
larger projects or projects that are more cost-effective to be contracted out under the current
workload. Facilities Maintenance also plays an important role in overseeing and executing CIP projects
and building upgrades. Recent accomplishments include re-roofing of the Police Department evidence
storage building, major repairs on the Rodriguez Adobe deck, and a rebuild of the back stairs at the Jack
House. Staff has also managed repairs and updates at the newly acquired Police Department facility;
HVAC upgrades at the Ludwick Community Center, Corporation Yard, and Senior Center; and the
Budget Report Pg. 56 Page 144 of 241
Department Updates – Public Works
installation of new heat pump water heaters at seven City facilities, improving energy efficiency at these
locations.
The additional maintenance of new office space for Human Resources and the Police Department has
created workload challenges for the program. Additionally, a rise in the number of trash clean-ups,
graffiti reports and other impacts from the unhoused community have put a strain on staff time. Due
to limited bandwidth, staff have not been able to complete or have been required to postpone
additional work requests from other divisions and departments outside of normal scope over the past
few months.
Streets & Sidewalk Maintenance
The Streets Maintenance Program continues to address sidewalk and pavement needs throughout the
city. During rain events, the Streets Maintenance Program performs storm patrol and responds to
numerous service requests throughout the year. The program also completes trash and green waste
management for the corporation yard and manages the metal recycling program. Due to the popularity
and a large number of requests via Ask SLO, some paving and concrete construction projects have been
delayed. The Streets Maintenance Program provides traffic control support to City events and
maintenance activities such as street tree pruning and cleanups along arterial roads. The program
helped support a very successful Holiday Parade in December. Downtown staff has made a difference
in the downtown area by increasing the level of maintenance and sidewalk cleaning. The program
recently implemented a hard closure with anti-vehicle barriers weekly at the Farmers Market, which is
being completed by permanent staff through overtime, and will be impactful on the overtime budget.
During Budget Supplement, the program plans to request additional resources to help address
community expectations and continue with the progress of the City’s Pavement Program.
Traffic Signals & Lighting
The program is categorized as yellow due to the need to repair and replace signal and lighting
equipment from unanticipated vehicle or storm damages. Safe and efficient traffic signal operations
have been maintained through regular preventative maintenance, repairs to damaged traffic signal
equipment, and ongoing refinements to traffic signal timings and equipment, including ADA upgrades
for pedestrian push buttons and assistance with Pedestrian Hybrid Beacons. Traffic Signal/Streetlight
technicians have also assisted with several development-led traffic signal and beacon installations. The
program has also been responding to what seems to be an increase in knock down incidents where
vehicles have hit above ground traffic signal equipment. Staff will be implementing a standard plan for
solar path lighting as part of the 2023 Engineering Standards update and is continuing to explore solar
options for streetlights.
One of two signal technician positions is currently vacant, which will continue to pose workload
challenges until it is filled. The program budget is on track to fund minimal essential maintenance
responsibilities through end of the fiscal year; however, an ongoing uptick in the frequency of
equipment knock-downs and failures has been quickly depleting available budget needed to maintain
adequate inventory of spare signal equipment. Additional budget will be requested as part of future
budgets to be able to more timely address equipment replacements that are necessary due to vehicle
strikes and to purchase sufficient spare equipment to adequately maintain the aging existing signal
system. In some cases, repair costs are reimbursed through “damage to city property” fees; however,
staff estimate that only about 50% of repair costs are recovered as damages are often caused by hit-
and-run incidents. In addition to vehicle damages, several locations (Righetti-Tank Farm Roundabout
Budget Report Pg. 57 Page 145 of 241
Department Updates – Public Works
lighting, and the five median streetlights on Los Osos Valley Road by Froom Ranch Way) have
experienced underground electrical issues that are currently being troubleshooted. In the meantime,
solar panel powered lighting is being used until the issue is resolved.
Fleet Maintenance
The Fleet program is responsible for purchasing, outfitting, maintaining, and repairing nearly 300 City-
owned fleet assets. Other responsibilities include vehicle procurement and disposal, emissions
reporting, maintenance of the Corp Yard fuel pumps and car wash, back-up generators, hazardous
waste handling, reporting and disposal, and parts inventory. Staff perform 45-60 preventative work
orders each month, in addition to repairs that are a result of unscheduled breakdowns. In line with
Major City Goal objectives, staff was able to procure two additional Ford Lightning EV trucks bringing
the City-wide total to six. Fleet also procured its fourth EV car – a Chevy Bolt. Charging stations installed
under Fleet direction at the Corporation Yard are on-line and working without issue, and Fleet assisted
with securing charger installations for public use by sourcing the ChargePoint chargers needed.
Vehicle procurement has been hindered by supply chain issues, but the program is working to procure
the necessary vehicles for City programs and services. Following the reduction of one position as part
of the 2023-25 Financial Plan, Fleet Maintenance has routed many repairs and maintenance tasks to
outside vendors. Increasing demands of emissions testing and reporting, hazardous waste, storm
water, and wastewater discharge, and the implementation of tracking software have posed additional
workload challenges. Additional mechanics will be necessary to support the day-to-day operations of
the program.
Overall, the Fleet Maintenance budget is currently on track; however, fuel costs are highly susceptible
to market volatility.
CIP Engineering
The program is categorized as yellow due to challenges recruiting the additional staffing resources
necessary to oversee and deliver the increase in workload associated with the passage of Measure
G20 and the unforeseen number of storm response recovery from winter 2022-23. A focus of this
program has been filling vacant positions, and managing recruitments to find highly qualified
candidates has been a challenge. The CIP Engineering Program continues to advance and deliver
Capital Improvement Projects funded for design and construction. During the first quarter of FY 2023-
24, several construction projects have been completed including the 842 Palm Parking Structure
Gateless Entry, Railroad Safety Trail Fencing, Santa Rosa at Monterey Intersection Improvements, Silt
Removal 2023, Ruth and Iris Storm Drain Repair, San Luis Obispo Creek Emergency Bank Stabilization
Project near Johnson Avenue, and CDBG Curb Ramps 2022. Additionally, many projects are currently
awarded to be in construction soon or already in construction including the North Chorro
Neighborhood Greenway, 2023 Arterials, North Broad Street Neighborhood Park, Cheng Park
Revitalization, Fire Station 1 Fleet Maintenance Roof, Johnson Waterline, and the Cultural Arts District
Parking Structure. Inspection staff continue to review and monitor private and public projects in
construction, including large developments such as San Luis Ranch and Avila Ranch. Though the
program continues to deliver a large quantity of important projects on schedule, the program has seen
an increase in the overall workload with the emergency storm response projects generated from winter
2022-23. This has greatly increased workload of existing staff and highlighted the need for additional
resources to fill staffing vacancies to help balance the workload. The program is currently recruiting a
vacancy of the Construction Engineering Manager in January 2024. Additionally, the program has one
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Department Updates – Public Works
vacant full-time engineer position due to the recent promotion of an existing engineer to Capital
Improvement Plan Administrative Manager and one part-time intern vacancy. Filling these positions
will be important for returning CIP Engineering to the green category.
Transportation Planning & Engineering
The program is categorized as yellow due to the impacts of staff vacancies and expanded workload
associated with multiple concurrent priorities, including complex development projects, large capital
improvement projects and other ongoing priorities. The Transportation Planning & Engineering
Program has continued progress with enhancing crosstown traffic circulation, including managing
several large projects in construction; progressing with design of several upcoming capital projects;
continued support for a continuous stream of private development-related projects; ongoing
implementation of the City’s Active Transportation Plan; and managing day-to-day essential services.
Some highlights over the last six months include: completion of the Pedestrian Crossing Improvements
Project; major progress on the North Chorro Greenway and 2023 Arterials Paving Projects, which are
both nearing completion in early 2024; development and adoption of a formal Outdoor Dining Program
after a successful pilot parklet program that was previously launched as part of the City’s COVID-19
response efforts; planning, outreach and design progress on the Higuera Complete Streets project; and
construction of the Santa Rosa/Monterey Intersection Improvements Project, which included
pavement improvements, ADA curb ramp upgrades, traffic signal modifications and pavement
markings to enhance safety for all road users.
While the program is anticipated to be fully staffed in early 2024, the average experience level of
program staff has decreased in the past few years due to staff departures and transitions within the
organization. The program has had a vacant senior Transportation Planner/Engineer position since July
2023, which has required redistribution of day-to-day assignments to other staff. This has also slowed
progress with some ongoing project efforts, such as the California/Taft Roundabout Project, the Foothill
Boulevard Complete Streets Project, and the Railroad Safety Trail Extension (Tiburon to Orcutt) Project.
With significant involvement in several complex development projects, continued commitments to
several large capital improvement projects that will continue through 2024, and focused efforts on
priority programs/planning efforts, it will be difficult for the program to take on any new project
assignments in the next 1-2 years until several of these ongoing efforts are completed. If there is
interest in accelerating any current tasks or adding new project assignments to the program, staff would
need to explore some combination of deferring existing projects and increasing funding for outside
consultant engineering support.
Work Program Evaluation
Mobility Services – Transit Operations and Maintenance
The Transit Program is part of a Public Works Department reorganization effort that unifies the Transit,
Parking, and Active Transportation programs under the new Mobility Services Division. The Transit
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Department Updates – Public Works
Manager position was also reclassified into the Mobility Services Business Manager as part of this
reorganization.
Ridership is recovering but is still significantly lower than pre-pandemic levels. Recruitment and
retention of bus drivers is the primary force limiting a return to full academic services. Staff was able to
partially restore services at the end of October 2023 across all fixed route lines. The Farmer’s Market
Trolley and Holiday Trolley also made a return this year thanks to a minor increase in the number of
drivers. Council authorized the City Manager to negotiate and execute an amendment to SLO Transit’s
operations and maintenance services agreement to include driver hiring incentives to attract and retain
drivers, and an extension of the term of the agreement through June 2026.
In August 2023, staff completed a Federal Transit Administration (FTA) Triennial Review, which
constituted a significant work effort for the small Transit team. In December, staff also kicked-off a
Transportation Development Act (TDA) Triennial Performance Audit which will continue through Spring
2024. These efforts are resource-intensive but have not affected delivery of critical program objectives.
Staff continues transition to a zero-emission fleet with the delivery and operation of two new battery
electric buses. Staff has issued a purchase order for six additional battery electric buses which would
put SLO Transit ahead of the state’s timeline for full zero emission adoption. However, the transition to
zero emission fleet remains a challenge, as costs of buses and charging infrastructure outpaces inflation
in other markets. Production and delivery timelines are also still affected by the COVID pandemic.
Funding is critical to the rollout of a zero-emission fleet as the cost of buses and associated charging
infrastructure continue to increase. Maintenance and fuel costs will continue to be an issue until the
aging diesel-powered fleet is replaced by battery electric buses over the next three years. These costs
continue to rise as the aging fleet requires more major repairs and fuel prices remain volatile due to
larger market forces. Staff is closely monitoring both line items and have recommended net zero
operating budget changes as part of Mid-Year Review. Staff is not recommending any changes to
estimated transit service revenue.
Budget Report Pg. 60 Page 148 of 241
Department Updates – Public Works
Work Program Evaluation
Mobility Services - Parking
The Parking Services program is also part of the Mobility Services reorganization effort referenced
above. Staff secured funding for and began construction of the Cultural Arts District Parking Structure,
with groundbreaking occurring in December, and developed the request for proposals for the Parking
Rate Study, which is scheduled to begin in January. Parking Services collaborated with the project team
to support the acquisition of 1166 Higuera Street which will operate in the near term as a new City
parking lot. Staff implemented the Holiday Free Parking Program through December and early January
and implemented additional free parking in the structures (one-hour free plus free parking on Sundays)
through June 2025 . Operations staff upgraded 27 on-street pay stations and completed several minor
projects to maintain the cleanliness of the structures.
When a parking rate increase, activation of gateless infrastructure at 842 Palm Structure, and
implementation of Park Local Pilot Program launched on July 1 (concluding in November), the Parking
Services Program moved quickly to prioritize communications, public engagement, and coordination
with multiple vendors. The volume of phone calls and emails as a result of these initiatives
overwhelmed staff and unfortunately impacted other areas of customer service within the program.
Since that time, staff has recalibrated and addressed the valuable feedback of community members.
Parking Services developed a comprehensive Communications Plan that includes increased signage and
messaging, and implemented administrative changes to improve communication via phone, email and
in-person. Several operational changes, including an extended grace period after expired parking
sessions, a reduction in the number of supported mobile apps, and consistency among payment
methods for pay sessions, enhanced the customer experience.
The Parking Services Program has also experienced staffing challenges. Administrative team vacancies
have impacted workload but are now filled. The Parking Services Program Manager was on paternity
leave for a duration of Q1. The position is now vacant; recruitment is underway and estimated to be
filled by the end of March 2024. Despite these challenges, staff is working to meet day-to-day
objectives. Public communication remains a top priority in Parking Services. Currently the Division is
recruiting for a Mobility Communications Coordinator that will heavily support the Parking Services
team; recruitment for this role is set for early 2024. This person will be the lead on implementation of
the Parking Communications Plan.
Staff is working with a consultant to review, evaluate and provide recommendations on the overall
Parking Program including administration, operation and enforcement. This evaluation will inform the
future of the Parking Services program and provide opportunity for improvement prior to and
continuing past the recruitment and onboarding of a new Parking Manager.
Staff is closely monitoring unexpected cost increases in several operating budget accounts and have
recommended several operating budget changes as part of Mid-Year Review. These include increases
to the Advertising & Public Outreach, Equipment & Maintenance Supplies, Miscellaneous Materials &
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Department Updates – Public Works
Supplies, Print & Reproduction budgets to reflected true projected costs, and a substantial increase to
the Credit Card Merchant Fees budget due to the rapid adoption of digital payment methods.
Additionally, as part of the multi-phased Mobility Services Division reorganization effort, staff have
requested changes to the position allocations for the Deputy Director of Mobility Services, Mobility
Services Business Manager, and Admin Assistant III in order to properly reflect their time allocation. At
the same time, staff is recommending positive revenue adjustments to parking fines based on current
trends, additional anticipated parking lease revenue, and parking meter revenue due to the recent
acquisition of the new 1166 Higuera parking lot, but a significant decrease in parking structure revenue
($926,000) based on free Sunday parking and first hour free parking relief programs.
Budget Report Pg. 62 Page 150 of 241
Department Updates - Parks and Recreation
Parks and Recreation Department
Performance Measure Update
Objective Measure 2022-23
Actual
2023-24
Target
2023-24
Mid-Year
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 22 25 10
# of non-profit permitted Facility
Uses 100 120 100
# of program registrations 4,575 4,500 3,981
# of program offerings 410 400 215
# of childcare spots filled/offered 2000/2000 1500/1500 2437/2437 28
# of children receiving subsidy
70 CAPSLO
35 City
scholarship
60 CAPSLO
50 City
scholarship
60 CAPSLO
9 City
scholarship 29
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 4 6 5
# of updated or new parks and
amenities in process 5 5 9 30
Creates and fosters a sense of
community through citizen
involvement.
Strategic Goal: Maximize Community
Resources & Collaborations (P&R
Strategic Plan Goal)
# of volunteers/hours 164/1935hrs 380/4100hrs 116/1973hrs
# of temporary Public Art or
Cultural Art Events 4 5 2 31
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 7,000 7,800 7,400
# of Facebook followers 4,500 5,000 5,400
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 65.5 66.5 66.5
# of staff hours dedicated to fuel
reduction 3,300 4,000 2,000
# of encampment site clean-ups
removed from Open Spaces
90
110 35 32
28 The number of childcare spots offered/filled was significantly higher than targeted due to the additional space offered for
Summer Camp, specifically the Summer Fun Day Camp that the City partnered with San Luis Coastal Unified School District on
as the District provided additional facility space and financial support to families.
29 Staff has received a reduced volume of scholarship applications to date for FY 24 but is currently working to restructure the
program this quarter to make the scholarships more impactful for families.
30 These include Cheng Park Beautification Project, North Broad Street Neighborhood Park, Mitchell Park Revitalization Project,
Emerson Park Beautification Project, Righetti Ranch Park System, Laguna Lake Dog Park Revitalization Project and pilot Bike
Park at Laguna Lake Park, as well as playground replacements at Vista Lago Park and DeVaul Park.
31 The City is under contract to install a replacement sculpture at Mission Plaza lawn and a new roundabout sculpture in spring
2024. Additionally, under the partnership with SLOMA, a new downtown art project is in exploratory stages for Garden Street.
32 The Bob Jones Bike Trail was closed from September 12-October 31, 2023 for fencing and creek maintenance. This meant no
access to the trail or creek from Prado Road to Los Osos Valley Road during this timeframe, thereby significantly reducing the
build ups of encampments on the City’s most impacted transient-occupied open space.
Budget Report Pg. 63 Page 151 of 241
Department Updates - Parks and Recreation
Work Program Evaluations
Recreation Administration
The Recreation Administration Division continues to advance the identified short, mid, and long-term
priorities outlined in the plan. The Cheng Park Beautification Project has commenced, in collaboration with
the original designer and architect, Alice Loh, and ground broke on the new park project at North Broad Street
Neighborhood Park in December. The two State Park Prop 68 Grant-supported projects are underway, with
the anticipation of the Mitchell Park Beautification commencing in early 2024, and the Emerson Park
Beautification Project design being finalized in early 2024. The Righetti Ranch Park System designs have been
approved by the Parks & Recreation Commission with an anticipated start date in Fall 2024. Staff is currently
reviewing potential construction costs for the Laguna Lake Dog Park Revitalization Project and is anticipating
a project timeline of late Summer 2024. At the same time, playground replacement designs for Vista Lago
Park and DeVaul Park are being finalized in January 2024, and the internal design and build for the pilot bike
park at Laguna Lake Park is anticipated to begin in late winter 2024. The Public Art Program, as part of its
community partnership agreement with San Luis Obispo Museum of Art (SLOMA), selected a pre-constructed
sculpture, Shift, by artist Warren Hamrick, for the Heirloom/Froom Ranch roundabout, and commissioned an
original work by artist April Banks as part of a rotating exhibition on the Mission Plaza adjacent to SLOMA that
will replace the existing David sculpture by artist Adam Parker Smith in April 2024. Staff hired a new Public
Art Coordinator set to start in January. This position was approved by Council in the FY 2023-25 Financial Plan
as a full-time contract position and will assist in coordinating the Public Art Program and implementing the
Public Art Master Plan.
Facilities
The Facilities Division supports the Open SLO Program by performing daily set-up, maintenance, and clean-
up for the Downtown Dining program in Mission Plaza. Community youth and adult sports regularly utilize
City fields and courts for tournaments, leagues, and practices with significant resources being dedicated to
the Damon-Garcia Sports Complex. The Library Conference and Community rooms, the Ludwick Community
Center, Senior Center, and Meadow Park Building, overseen by Facilities staff, serve the community for social
gatherings, meetings and general uses. Staff is also accepting reservations for events at the Jack House for
the upcoming 2024 season. The Division recently enhanced various community facilities with several key
upgrades. The Ludwick Community Center gym received new floor mats to support events. Staff replaced
reservation display boards and updated court rule signage in multiple parks, and the Library meeting rooms
received new tables. Staff added tables to the Mission Plaza Downtown Dining Program, enhancing the
community's experience in this vibrant social hub. Indoor meeting room rentals and Jack House Gardens
rentals continue to lag behind pre-pandemic reservation numbers. However, staff is increasing advertising to
reintroduce these unique and affordable venues to the community.
Youth Services
The Youth Services Division is categorized as yellow because of staffing challenges associated with
recruitment and retention, as well as classroom space restrictions. Youth Services provided quality childcare
to the community at all five (5) elementary school sites located within the City (C.L. Smith, Hawthorne,
Pacheco, Sinsheimer, and Bishop’s Peak), and expanded summer camp programming to assist in fulfilling
community needs. The Division continues to experience recruitment challenges which were already issues
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Department Updates - Parks and Recreation
pre-pandemic but have become increasingly challenging in relation to consistent supplemental staffing. One
full-time Site Specialist role remains unfilled and is currently being covered by the Youth Services Coordinator
and Supervisor. The Site Director position is in its second recruitment attempt for January 2024. Recruitment
for in-classroom supplemental staff who are qualified to work as Aides, Teachers and Head Teachers
continues to be challenging with a limited pool of interested candidates. Staff have increased recruitment
efforts by attending in-person job fairs at Cal Poly, Cuesta, and local high schools, as well as increased
marketing recruitment promotions to year-round efforts. In addition, many Youth Services staff are college-
aged students and have scheduling challenges surrounding academic calendars to fulfill some of the daytime
shift needs. However, even with the local and national trends confirming the recruitment challenges for these
types of positions, the program has been able to hire over 25 additional supplemental staff since July and are
rebuilding a more sustainable staffing structure in the aftermath of the pandemic hiring challenges. With
childcare at the center of the community’s economic recovery, Youth Services staff continue to provide before
and after school childcare, as well as childcare for school breaks. Two classrooms at each school site have full
programs for each program time. The City continued to be contracted by the San Luis Coastal Unified School
District to staff the District’s expanded Kinder and TK-aged children’s programs that are now included in the
daily operations at the school sites. Previously, the City operated the Kinder and TK programs exclusively.
Youth Services staff continues to look for creative solutions to accommodate as many children as possible
from waitlists as they continue to hire supplemental staff throughout the year, as well as work with District
to identify facility space (classrooms/multi-purpose rooms). Summer camp (June-August) expanded to eight
(8) classrooms from the previous six (6) classrooms. Children with Special Needs are accommodated at all
school sites and programs. Ongoing professional development is provided to Youth Services staff, including
mandated Child Abuse reporting, First Aid and CPR, program and curriculum development, positive guidance
strategies and inclusive programming, safety training, and large group management. Staff have started
advertising higher step wages for supplemental positions based on available budget, to assist with
recruitment.
Community Services
The Community Services Division manages youth and adult athletics leagues, organizes recreational activities,
hosts free and affordable community events, oversees the SLO Skate Park and Monster Skate Series with
surrounding communities, and promotes healthy lifestyles through expanded contract instructional
programs. Additionally, the division supports Jack House events and the Jack House Docent Program,
manages the Community Gardens programs at five locations, and programs in collaboration with the Senior
Center Board. In support of the Parks & Recreation Blueprint for the expanded youth and adult recreational
activities, shifts to the job duties for one of the Division’s existing Recreation Coordinator positions has
provided additional support for the division’s popular Adult and Youth Sports offerings, and special events.
The youth basketball league continues to grow, with over 700 participants for the 2024 winter season. In
support of the expanded community programming in support of the Parks and Recreation Blueprint (master
plan), as well as Major City Goals and Local Revenue Measure expectations for youth and senior
programming, the Community Services Division continues to offer several zero to low-cost community-based
events for youth, seniors and families, such as the Monday Meet-Ups and the Rec is Rad youth activity series
in under-represented local parks, as well as the Senior Trivia series, Pet Week, and hiking and walking groups.
The Division’s inaugural Senior Dance was also a smash hit, drawing a large crowd. Notably, the annual
September Scramble in the fall attracted over 450 participants, while the Boo Bash in October expanded its
reach, drawing attendance from over 1,000 community members, with 1500+ entries through the Haunted
House. As community events and youth and adult sports returned to full programming, the Division continues
to rely on both full-time and part-time staff, and staff also have reached out to Cal Poly for volunteers to make
their special events successful.
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Department Updates - Parks and Recreation
The newly established citywide Volunteer Program has quickly ramped up under the guidance of the City’s
new full-time Volunteer Coordinator. Over the past few months, the Volunteer Program has launched Engage
SLO, a new volunteer portal, and created and advertised many new and ongoing volunteer opportunities to
support City activities, including Adopt-a-Park, Arbor Day, September Scramble, Boo Bash, Fall Creek Clean
Up, Community Garden Service Saturdays, Jack House Docent Program, and Ranger Workdays. Regular and
recurring volunteer numbers continue to grow, with volunteer hours totaling nearly 2000 over the last 6
months – an impact valued at over $74,000. In the coming months, the Volunteer Program will continue to
expand Adopt-a-Park volunteer opportunities, explore a multi-departmental Community Connector
volunteer role, and capture Police and Advisory Body data.
The Community Services Division received three program awards this fall from the California Parks and
Recreation Society (CPRS) District 8. The awards were for “Creating Excellence within the Community,” and
recognized the Volunteer Jack House Docents, the Senior Center Executive Board, and the Monday Meet-Up
program.
Revenue estimates for adult athletic fees, youth athletic fees and instructional fees have been re-forecasted
based on past year and year-to-date actuals and expected revenue, with a minor net impact. Increases have
been driven by partnership agreement changes, and decreases have been driven by fewer than expected
revenues to-date for adult athletic fees and contract classes.
Ranger Service
Ranger Service continues to effectively maintain and patrol the City’s 4,050 acres of open space across all 13
City-managed open space properties. The Ranger Service Division dedicates resources for supporting fuel
management (WUI) and to clean up trash and debris in the City’s open spaces and creeks. Staff recently
completed two new trail projects – Bog Thistle and King Trail Re-Route and completed the trail design and
layout for the Righetti Loop Trail. The Division closed the Bob Jones Bike Trail for two months in the fall to
complete fire fuel mitigation and creek clean-up projects, using The Goat Girls to naturally remove large
amounts of brush in the creek systems. Ranger Service has expanded its educational programming with more
environmental education videos, social media postings, Ranger-instructed classroom/event presentations,
and Ranger-led interpretive hikes (including bi-lingual opportunities). Ranger Service implemented another
successful and sold-out Junior Ranger Camp session in August – one of three that are offered annually to the
community. The Winter Evening Access program (November - March at Cerro San Luis) has also remained
incredibly popular with the significant impacts occurring in the month of December. With one Ranger position
frozen this fiscal year to support the organizational shift to pilot Skill-Based Pay model, increased workload
on other Rangers has extended maintenance intervals where necessary, while still addressing top priorities.
Another ongoing challenge is that Rangers are operating with a shortage of vehicles and equipment. If the
pilot skill-based pay program is successful and endorsed at year end, the staffing limitation will need to be
addressed by revisiting the frozen position for the second year of the financial plan. Additionally, if the Open
Space Tech program continues to be identified as a City-wide need, then financial support for an additional
vehicle and supply equipment will need to be addressed. These limitations can detract from available staff
resources for open space needs; however, Ranger Service has been able to maintain the current work plans
for year one of the financial plan.
Aquatics
Recently, stronger recruitment and retention of lifeguards for Fall programming has allowed for the return to
regular operational hours for lap swimming and regular warm water programming. Additionally, staff is
expanding swim lesson program offerings throughout the upcoming season and has re-forecasted revenue
projections to reflect this programming update. Management continues to provide monthly staff trainings,
including First Aid, CPR, water rescue techniques, customer service and diversity trainings. Staff installed a
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Department Updates - Parks and Recreation
new diving board at the end of summer, in advance of the fall season. The Aquatics Division provides program
and facility support for the SLO Seahawks Swim Club, local SCUBA shops, and Mission Prep High School, and
has a short-term agreement to support Atascadero High School while their pool remains under construction.
Staff offer public lifeguard training and instructor courses throughout the year. The potential for recruitment
and retention concerns remain as wages for part-time (supplemental classifications) offerings in the fast-food
sector are legislated to have a higher minimum wage in 2024. Staff have started advertising higher step wages
for supplemental positions based on available budget.
Golf Course
This division is categorized as yellow due to the continued challenges associated with the aging irrigation
infrastructure and Pro Shop facility remediation at the course. The Golf Division continues to provide
standard operating services at the Laguna Lake Golf Course (LLGC) seven days per week. The course has
experienced consistent round play throughout the first 6 months due to ideal playing conditions. However,
with the issues of not having a fully operational pro shop have restricted golf programs from operating at full
capacity. Additionally, revenue estimates have been slightly reduced for golf green fees due to recent and
expected closures from forecasted El Niño. On the maintenance side, staff have used innovative watering
techniques to offer a consistently green course throughout the August-October months, while still working
hard to conserve water. Unfortunately, the course continued to be severely impacted by leaks caused by
aging irrigation lines requiring additional maintenance time and facility closures and leading to increased
water costs. During the recent Financial Plan development, this project was added to the forecast for FY28-
FY31.
With the main Pro Shop closed due to major flooding from a significant winter storm back in December 2021,
a temporary trailer serves as the Pro Shop and staff offices. The remediation project for the Pro Shop
completed the removal and sanitization of all golf equipment (Phase 1) and the removal of all damaged areas
within the facility (Phase 2) in early 2023. Staff are in the process of finalizing construction documents for the
renovation of the Pro Shop (Phase 3), with an expected start date of Fall/Winter 2024-25.
Budget Report Pg. 67 Page 155 of 241
Department Updates - Police
Police Department
Performance Measure Updates
Objective Measure 2022-23 Actual 2023-24 Target 2023-24 Mid-
Year
Reduce Crime
Strategic Goal: Economic
Recovery, Department
Mission
# of total Part I Crime by year.33 2,011 2,010 1083
Provide safe roadways
for pedestrians, vehicles,
and bicyclists.
Strategic Goal: Patrol
Objectives, Department
Mission
# of total traffic collisions.34
Vehicle: 435 Vehicle: 420 Vehicle: 183
Pedestrian: 36 Pedestrian: 34 Pedestrian: 13
Bicycle: 35 Bicycle: 32 Bicycle: 21
# of targeted enforcement
operations conducted under the
Office of Traffic Safety Grant per
year
DUI Checkpoints: 2 DUI Checkpoints: 2 0 35
DUI Saturation
Patrols: 28
DUI Saturation
Patrols: 28 0
Traffic Enforcement
Operations: 13
Traffic Enforcement
Operations: 14 1
Distracted Driving
Enforcement:5
Distracted Driving
Enforcement: 5 1
Bicycle &
Pedestrian
Enforcement: 9
Bicycle &
Pedestrian
Enforcement: 9
1
Reduce Homeless related
Calls for Service through
proactive engagement.
Strategic Goal: Economic
Recovery, Department
Mission, Patrol Objective
# calls related to homelessness 6,699 6,300 3829 36
# of unique individuals
contacted by CAT 437 305 166
# of Family & Agency
Reunification 6 8 4
# of Local Permanent Housing 11 12 1
# of Mental Health/Substance
Abuse Treatment Referrals 215 100 110
Work Program Evaluations
Police Administration
The department continues to work toward filling vacancies and increase recruitment efforts. Staff is
working with the City’s Public Communications Manager to create a webpage specific to police
recruitment. As of early December, the department has eight vacancies (this includes both sworn and
civilian positions).
33 Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown
represent calendar year. Mid-year figure shown represents January to October 2023.
34 Traffic Collision data is from July – December 14, 2023, for mid-year reporting.
35 Targeted enforcement at mid-year appears low, however the grant period started on October 1st and additional grant
operations will occur in 2024.
36 All stats related to homelessness are July – November 30, 2023.
Budget Report Pg. 68 Page 156 of 241
Department Updates - Police
The department hired ten employees during the period of July to early December, these included: three
Communication Technicians and four lateral Police Officers, two cadets and one Records Clerk. In
contrast, there were seven employees that left during the same period, these included: crime analyst,
two dispatchers, three police officers, and a community services officer.
Staff attended a retreat in early September, facilitated by Jacob Green and Associates, to start developing
a five-year strategic plan. Although still in draft form, the plan includes the following focus areas: Service
to the Community, Community Engagement, Recruitment and Retention, Health and Wellness, and
Improving Infrastructure & Equipment. The department is working to finalize the plan and begin
implementation in Quarter 1 of 2024.
Patrol
Patrol continues to be understaffed due to vacancies. As of mid-December, there are two officer
vacancies, four officers in field training and two cadets starting the academy in January 2024. This
accounts for eight officer positions that are unfilled. Special assignments continue to be short staffed or
unfilled. Downtown Bikes are operating at lower capacity as well.
For the period of July to mid December 2023, total paid overtime hours for the department were 10,800.
In comparison, last year for the same period, hours were 8,500.
The Community Action Team continues to be understaffed with only one police officer and one assigned
case manager position that is contracted through the County.
Investigations
The Investigations division is categorized as yellow because the Special Enforcement Team (SET)
continues to be nonoperational due to low staffing levels. We expect to have a partial SET team up and
running in spring 2024, after the officers in patrol have completed their field training program. The
Detective Bureau is fully staffed and has been actively working several cases related to property crimes,
child abuse, and sexual assaults.
Support Services
The Support Services division includes Dispatch and Records. Since July, the department hired three
Communication Technicians and one Records Clerk. Currently, there are two vacant Communication
Technician postions. Interviews for the vacancies were held in early December and successful candidates
will start the background process soon.
Neighborhood Outreach
The Neighborhood Outreach division continues to meet objectives. Calls related to party noise
complaints from the period of January to early December 2023 are similar compared to the same period
in 2022. The party registration program continues to be successful.
Traffic Safety
The traffic sergeant continues to manage the annual Office of Traffic Safety grant and conduct DUI
Checkpoints, traffic enforcement, and other targeted enforcement activities. A fully staffed traffic team
is supposed to include one sergeant and three officers; however, due to staffing shortages in patrol, there
are only two officers currently in the assignment.
Budget Report Pg. 69 Page 157 of 241
Department Update - Fire
Fire Department
Performance Measure Update
Objective
Measure 2022-23
Actual
2023-24
Target
2023-24
Mid-Year
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.
8:48 7:00 8:40
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.
1:35 1:00 1:40
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.
2:26 2:00 2:20
Meet the Travel Time goal.
of 4 minutes or less to 90% of all lights-
and-siren emergencies in the City as part
of TRT.
5:51 4:00 5:49
Provide timely service to the
development community.
Strategic Goal: Housing
% of Fire Department
Development Review activities
completed within published cycle
times.
67% 80% 73%
Work Program Evaluations
Fire Administration
Fire Administration consists of four full-time positions (FTEs) The program provides strategic leadership
to the department and entire organization. Fire Administration plans, directs, and evaluates all Fire
Department programs and activities. The administrative assistant was successfully reclassified from an
administrative assistant III to an administrative assistant specialist to more accurately align with the
increased duties assigned which have expanded to include social media monitoring among other duties.
Emergency Response
The 45 FTE staffed Emergency Response Program is responsible for protecting life, the environment,
and property by responding to a wide variety of emergencies, including, but not limited to: medical
emergencies, structure fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents,
flooding, utility emergencies, and a wide range of urgent public assists.
This program is categorized as yellow due to its underperformance in meeting the Total Response
Time (TRT) Performance Measure Goals. To help meet the travel time component of TRT, the
department would require a significant investment in additional resources, such as adding a
strategically placed 5th fire station or increasing the number of units to help improve travel time. A 5th
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Department Update - Fire
station is planned at to be added in the Southwest side of the City once the Avila Ranch development
project reaches 80% occupancy levels.
Hazard Prevention This program is categorized as green because it is close to meeting its development review goals. A
new half time inspector was added at the beginning of FY23. New projects including hotels, apartments
and multi-family condominiums continue to increase the total number of mandated inspections,
hindering the department’s ability to keep up with demand. With the retirement announcement from
the Fire Marshal the division took the opportunity to undergo an organizational assessment and it was
determined that some restructuring would be beneficial. The division will be led by a new position that
will focus on overall community risk reduction beyond building safety and encompassing vegetative
fuels reduction for fire prevention. Staff anticipates filling this position before Spring.
Training Services
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
and fitness of fire department employees. The overall program goal is to support highly qualified, well
trained, safe, healthy, and fit employees. The Training Services program continues to utilize dedicated
funding to implement the injury reduction program for emergency response staff. This has included the
purchase of equipment and professional contracted services for functional movement screening and
training. Overall, the department has observed a decrease in the frequency of on-the-job injuries in the
short term.
Recruit Academy
The non-staffed Recruit Academy Program is responsible for coordinating and completing the training
of new hire firefighters. The Fire Department does not have current plans to host a recruit academy in
FY24 due to the current number of firefighter vacancies.
Fire Apparatus Services
This program is categorized as yellow however staff recommended an ongoing solution as part of the
FY24 Mid-Year SOBC that will meet the resource needs improving the program category to green. The
Fire Apparatus Program performs fire apparatus services, maintenance, and repair of light and heavy
fire apparatus and vehicles. Due to Truck 1’s high usage it is requiring more frequent and costly service
and repairs. In response the department is recommending refurbishment of the apparatus. Replacing
key components of the powertrain will reduce the repairs and extend the life of Truck 1.
Additionally, two vehicles in the department’s light fleet are past replacement age and also increasing
repairs times and costs. The department is recommending replacement of the truck dedicated to the
Fire Marshal and the Type VI fire engine. Replacement will reduce the repair needs and keep the
department’s fleet on schedule with the city’s established replacement policy.
Fire Station Facilities Support
The non-staffed Fire Stations Facilities Support Program helps manage and maintain the City’s four fire
station facilities, their grounds, and miscellaneous equipment, appliances, and furnishings. The budget
is currently enough to meet the overall program objectives and activities.
Disaster Preparedness and Assistance --
This program is now fully staffed, funded and meeting objectives. The Disaster Preparedness and
Assistance program focuses on three areas; 1) ensuring City personnel can provide appropriate rescue
and relief services following a major disaster such as earthquake, flood, nuclear power accident,
hazardous material spill and wildland fire: 2) providing information and education on disaster
preparedness, and fire safety the general public: and 3) provides assistance to communities outside of
the City of San Luis Obispo as part of the State’s Mutual Aid system.
Budget Report Pg. 71 Page 159 of 241
Department Updates - Utilities
Utilities Department
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 2022-23
Actual
2023-24
Target
2023-24
Mid-Year
Maintain and manage infrastructure,
assets, and facilities responsibly and
transparently.
Strategic Goal: Public Stewardship
Sanitary Sewer Overflows per 100
miles of sewer main37 9.15 0 0.68
Breaks/leaks per 100 miles of
water main 38 10 <13.4 2.08
Provide the Community with High Quality
and Reliable Service
Strategic Goal: Public Service
Recycled Water Delivered (AF)39 236 300 181.37
Minimize Customer Shut-Off for
Nonpayment40 352 <450 95
Work Program Evaluations
Water Administration/Engineering
Water Administration/Engineering includes administrative, planning, and engineering staff that work
with operations staff to manage the City's drinking water program. The division is responsible for
planning efforts to ensure distribution systems and water supplies can meet the needs of the present
and future community. Major work efforts include implementation of the Groundwater Sustainability
Plan, source water planning and acquisition, and workforce planning and development. Other work
includes the transition from a surface water permit to a surface water license at Whale Rock and Salinas
reservoirs, and the development and execution of large CIP projects at the City’s Water Treatment Plant
and within the Water Distribution system, which are outlined in additional detail below.
Water Source of Supply
The Source of Supply budget within the Water Division funds programs related to the City’s surface water
sources, groundwater, and recycled water. This budget is administered by staff at the Water Treatment
Plant, Whale Rock Reservoir, Water Quality Lab, Water Resources, Water Resource Recovery Facility,
and Water Administration/Engineering sections. Approximately 97 percent of the Source of Supply
budget is utilized to fund the delivery of raw water to the City’s Water Treatment Plant and to fund
associated capital repairs and projects at the City’s three surface water reservoirs. During the first half
of the Fiscal Year, the Spillway Underdrain Repair project was completed at the Whale Rock Reservoir
and the City began the second phase of its groundwater cleanup project within the San Luis Obispo Basin.
Approximately 40 percent of the Source of Supply budget funds debt service for the Nacimiento Water
37 The Utilities department maintains 142 miles of sewer main annually. The data in the table above was updated
on 11/8/2023 and represents roughly 36% of the fiscal year. Relative to the 2021 American Water Works
Association Utility Benchmarking report, 0.9-1.1 SSOs per 100 miles of sewer main would put the City in the 75th
percentile of surveyed wastewater service providers.
38 The Utilities department maintains 192 miles of water main annually. The data in the table above was updated
on 11/14/2023 and represents roughly 37% of the fiscal year.
39 The data located in the table above was updated on 11/26/2023 and represents roughly 41% of the fiscal year.
40 The data located in the table above was updated on 11/8/2023 and represents roughly 36% of the year.
Budget Report Pg. 72 Page 160 of 241
Department Updates - Utilities
Project, which has been critical in allowing the City to manage source water supplies without requiring
mandatory water conservation measures. Storms during the winter of 2022-23 damaged the Nacimiento
pipeline, resulting in a disruption of service to the City. County of San Luis Obispo staff are currently
preparing design plans for permanent repairs to the pipeline and anticipate the pipeline will be restored
to approximately 50 percent of capacity by Spring of 2024. It is expected that FEMA and Cal OES will
provide funding for over 90 percent of the permanent repairs to the pipeline.
Reservoir Operations
This section consists of three staff members that are responsible for maintenance and operation
of Whale Rock Reservoir, 18 miles of raw water pipeline, and two pump stations that
deliver untreated water to the Water Treatment Plant. CIP projects are planned to maintain, replace, or
upgrade infrastructure to meet the goals of protecting source water quality and ensuring consistent
water delivery. From August-October a contractor completed the Spillway Underdrain Repair project,
restoring the spillway underdrain system to its original capacity and function. Additionally, Whale Rock
staff added additional monitoring equipment to the reservoir to allow for continuous monitoring of
overflow volumes from the lake and conducted debris removal from sections of Old Creek downstream
of the reservoir to ensure proper stream flow. Staff also conducted repairs to a section of the Whale
Rock pipeline that was exposed due to landslides during the Winter storms in 2022-23.
Water Treatment
Water Treatment is an 11-member team responsible for the operation and maintenance of the City’s
drinking water plant. In the first half the current fiscal year, the water treatment plant has provided the
City’s users and Cal Poly with over 2,504 acre-feet of safe, reliable, potable drinking water. The water
treatment plant is now operating with state-of-the-art ozone disinfection equipment that was installed
last year as part of the Water Energy Efficiency Project. To understand and plan for future equipment
needs, the Utilities Department is working with a consultant to develop a Water Treatment Plant
infrastructure replacement strategy. The infrastructure replacement strategy will help the section
understand equipment replacement needs, how changing regulations may require upgrades to the
plant, and how water may be more effectively treated to meet regulatory standards while minimizing
costs. Global supply chain issues and shortages of raw materials continue to impact prices of chemicals
used in the water treatment process. Similarly, electricity costs continue to escalate due to PG&E rate
increases. In October, the treatment plant brought online its new Tesla backup battery system, which is
expected to reduce electricity expenditures by over $100,000 per year. The battery also provides backup
power to the treatment plant for approximately seven hours in case of a power outage.
Water Distribution
Water Distribution is a 12-person team responsible for the operation, maintenance, and expansion of
the City’s Water Distribution system. This system of pipes, tanks, pumps, valves, meters, and hydrants
transport water from the Water Treatment Plant throughout the City for fire protection and community
use. In the first half of the fiscal year, the section installed a new pressure-reducing valve on Highland
Drive. This new valve provides a secondary source of water supply for the pressure zone surrounding
Bishop Peak School and the Patricia Drive area. This installation greatly improved fire flow availability in
the area surrounding the school and provides necessary redundancy for maintenance activities.
Additionally, staff completed the design and bid process for two major CIP projects, including the
replacement of a 3,000’ of 16” transmission main along Johnson Ave. The section has also begun
installation of a small number of AMI (advanced metering infrastructure) endpoints in a pilot area to test
the technology’s viability and assess it for potential benefits. The crew repaired or replaced 31 service
lines, repaired 5 water main leaks, performed 3,069 work orders related to establishing water service
for new customers, and flushed, maintained, or replaced 401 fire hydrants.
Water Resources
Water Resources is a three-person team responsible for the development of local groundwater
resources, expansion of the City’s use of Recycled Water, and implementation of the City’s Water
Conservation programs. This team currently has one vacant position that has been open since July and
is expected to be filled in March of 2024. The team is also responsible for public outreach and
Budget Report Pg. 73 Page 161 of 241
Department Updates - Utilities
communications regarding the City’s drinking water program, which includes radio advertising, social
media outreach, and special event campaigns. The team received notification of grant funding for the
final phase of the Groundwater Cleanup Project, which will provide about $6.6 million to install up to 12
monitoring wells and construct two new groundwater extraction wells with treatment systems.
The City is working with the California State Water Resource Control Board to finalize the funding
agreement, and working with consultants to finalize design, environmental studies, and permitting for
the project. Construction for the monitoring and extraction wells are anticipated to begin in August-
September 2024, with the project anticipated to be completed by Spring of 2026. The team launched a
revised water rebate program designed to reduce potable water use in the City while utilizing $30,000
that was approved as part of the 2022-23 and 2023-24 budgets. Following up on the work done to revise
the rebate program, the team is completing a Water Conservation and Efficiency Plan, which details the
City’s history of water conservation and considers future paths for water conservation programing.
Refinements to the administration of the Recycled Water Program, including enhanced communication
with Site Supervisors and property managers, updated, and streamlined reporting, and increased
oversight, have resulted in a better understanding of the needs of recycled water users and a greater
assurance that the Department is meeting State. On 2/7/2023, staff received Council direction to release
a Request for Interested Parties (RFIP) as part of the Roadmap for the Maximization of Recycled Water.
Through the RFIP staff were able to identify regulatory, operational, economic, and legal requirements
for extraterritorial recycled water sales. The RFIP was released September 2023 and closed December
2023. Only one response was received, which did not meet the minimum pricing requirements set forth
in the RFIP and corroborated by rate consultants and legal counsel. Staff will continue to explore
opportunities to maximize recycled water for community benefit.
Wastewater Administration/Engineering
The Wastewater Administration/Engineering program leads, evaluates, and provides guidance and
direction for the effective management of the various wastewater programs. It provides strategic and
long-term planning for environmental compliance, stormwater, water quality analysis and reporting,
wastewater treatment and conveyance, solid waste and recycling, the Utilities Department’s safety
program, and recycled water production. Major work efforts of this section are currently centered
around the upgrade and regulatory permitting of the Water Resource Recovery Facility (WRRF) SLO
Water Plus project, public outreach and education, the sewer lateral rebate program, sewer system
modeling, departmental asset management standardization, consolidating roles and responsibilities of
the Citywide Stormwater Program, completing water quality laboratory certification for environmental
analysis and documentation, and negotiation of a new solid waste franchise agreement with San Luis
Garbage.
Wastewater Collection
This nine-member program of the Utilities Department is responsible for the operation and on-going
maintenance of the City’s wastewater collection system, with two staff members dedicated to the
maintenance of the City’s storm drain systems. The lateral rebate program offers financial support to
homeowners opting for sewer lateral replacement, granting rebates ranging from $2,000 to $3,000.
Between July 1, 2023, and November 14th, 2023, 26 sewer laterals were replaced, and 13 lateral rebates
were issued. Notably, the completion of the Calle Joaquin lift station project stands as a significant
achievement in this fiscal year. Additionally, the team is gearing up for a comprehensive two-year flow
study aimed at updating information related to capacity-constrained segments of the system. The study
aims to provide valuable insights for prioritizing capital improvement projects over the next decade and
assess the effectiveness of the sewer lateral programs. These programs contribute to reduced inflow
and infiltration into the wastewater collection system, meet regulatory requirements, protect human
health, and preserve capacity. The program is currently updating its Sanitary Sewer Management Plan
(SSMP) to address regulatory changes from a State-issued general order that went into effect on June
2023, and plans to bring the SSMP to council for adoption sometime in the fall of 2024. During the storms
of early 2023, where the sewer system experienced some of the highest flows on record due to flooded
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Department Updates - Utilities
streets, staff are proud to report that there were zero sanitary sewer overflows. This is a testament to
an aggressive preventative maintenance program and the adoption of novel technologies like a smart
cover monitoring network.
Environmental Programs
Environmental Programs (EP) oversees pretreatment industrial compliance for about 340 industrial
users within the City, including six Significant Industrial Users (SIUs). EP staff transitioned its paper filing
and reporting system to an electronic platform called ACP FOG this year, which tracks inspections
performed for industrial users within San Luis Obispo. The implementation of this software has enabled
staff to meet data tracking requirements better, monitor and report to the Water Board, streamline
inspection and monitoring processes, and reduce costs related to the administration of the program.
Additionally, staff have improved measurement and enforcement of fats, oils, and grease (FOG) at
restaurants. New equipment has enabled staff to better measure solids in grease traps and interceptors.
This is important as the reduction of FOG inflow to the wastewater collection system reduces the risk of
downstream sanitary sewer overflows (SSOs).
Water Resource Recovery Facility
This 13-member section of the Utilities Department is responsible for the operations and maintenance
of the City’s Water Resource Recovery Facility (WRRF), which treats all wastewater from the City, County
Regional Airport, and California Polytechnic University, and includes recycled water production.
The WRRF upgrade project (SLO Water Plus), the largest CIP project in the City’s history, has seen
significant progress in most aspects of construction, with approximately 75 percent of the initial
treatment processes completed and placed into service. Due to unforeseen conditions such as
contaminated soils and other hazardous materials, pandemic related supply chain and labor impacts,
and weather, the project is considered delayed. A detailed breakdown of project delays and underlying
impacts is currently being compiled by the General Contractor, PCL Construction. However,
commissioning of the completed systems has resulted in full compliance capacity with a Time Sensitive
Order (TSO) issued by the Regional Water Board. Staff anticipate receiving a new discharge permit from
the Regional Water Board in June of 2024 and are currently negotiating the terms. The remaining SLO
Water Plus construction includes work that results in additional treatment capacity and new odor control
facilities. During construction, operations and maintenance staff have worked around construction and
with the existing treatment train to convert nearly half a billion gallons of wastewater to safe, clean
water. While the 2023-25 Financial Plan indicated completion by the first quarter of 2024, the SLO Water
Plus project is now anticipated to be substantially completed by July 2024. Project closeout is expected
by the end of calendar year 2024, which will include a ribbon-cutting ceremony and a series of public
outreach events.
The WRRF program is categorized as yellow because of three unanticipated costs. First, staff budgeted
the fiscal year 2023-24 electric service account assuming a 35% rate increase; however, staff were
informed in January 2024 that the cumulative electric rate increase from January 2023 to July 2024 is
now forecasted to be 63% for Community Choice Aggregate customers. In fiscal year 2023-24, staff
anticipate being able to utilize underspend in other accounts to cover the rate increases. That said, staff
will continue to monitor spend rates and provide an updated forecast on electric service spending at the
2023-24 3rd Quarter Report. Staff will need to request additional electric service budget at 2024-25
Budget Supplement.
Second, during the demolition of a legacy treatment system, the construction team encountered
residual mercury, which was part of a sealed component of the old system. Staff worked closely with the
construction team and regulators to safely remediate the site and properly dispose of the hazardous
materials. The estimated impact of this work is $350,000 and is not covered by the WRRF upgrade
budget. Staff will seek authorization to appropriate this funding through Undesignated Capital
(Completed Projects) at 2024-25 Budget Supplement.
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Department Updates - Utilities
Third, construction delays produced sequencing constraints that resulted in the generation of significant
odors which have impacted the community. Staff collaboration and creative solutions have resulted in
temporary operations to reduce odor and stabilize impacts on discharge compliance. These solutions
include a supplementary centrifuge to assist with solids separation and disposal services for solids
byproducts in excess of current processing capacity. These systems will be utilized until permanent
infrastructure related to solids handling is completed in the spring of 2024. Staff will seek authorization
to appropriate funding for the costs of these temporary odor reduction measures through Undesignated
Capital (Completed Projects) at 2024-25 Budget Supplement.
Sewer Fund Undesignated Capital (Completed Projects) are funds that have been approved by Council
to be spent on capital projects but are not designated to a specific project. This balance increases when
Sewer Funded projects are completed under budget.
Utilities Revenue
Utilities Revenue is staffed with two full-time positions and provides support to 16,765 service
connections. This includes billing, payment collection, past-due processing, and customer service.
Staff also administer the customer assistance program, which applies a 15% discount to the water and
sewer bills of qualifying customers. 186 41 customers are enrolled in the customer assistance program. In
coordination with the Community Action Partnership of San Luis Obispo County (CAPSLO), Utilities
Revenue staff have administered $140,288 42 in direct bill relief for eligible customers through the Low-
Income Household Water Assistance Program (LIHWAP) from June 2022 to present.
Water Quality Lab
The five-member 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, recycled water, groundwater, drinking water, and the San Luis Obispo
Creek watershed. The WQL operates under regulations ensuring compliance with Federal, State, and
local regulations. For the past six months, staff provided continued support for the WRRF Upgrade and
corresponding regulatory permit negotiations, protecting public and environmental health. Staff also
continues to implement new Environmental Lab Accreditation Program Standards.
Water Quality Lab staff maintain an ongoing partnership with the County and other health professionals
in wastewater-based epidemiology to track and support general trends relating to the COVID-19
pandemic.
Solid Waste & Recycling
The Solid Waste and Recycling (SW&R) Program was created in July 2019 to ensure compliance with
solid waste legislation such as Senate Bill 1383 and Assembly Bill 1826, manage the City’s SW&R
collection franchise agreements, conduct public outreach, and work with external partners such as San
Luis Garbage and the Integrated Waste Management Authority (IWMA). In July 2023, a full-time
permanent SW&R Coordinator was hired. In September, a Cal Poly College Corps Fellow joined the SW&R
Program to support the City’s Climate Action - Lead by Example Zero Waste Plan implementation.
Some of the projects that staff are currently working on include the completion of the updated waste
characterization study, preparation for expiration of the waste SW&R collection franchise agreements,
coordination with the IWMA on regional efforts and governance, and acquisition and implementation of
a CalRecycle Beverage Container Grant.
In October 2023, the County Board of Supervisors voted to rejoin the IWMA through a Joinder
Agreement. This agreement provides a pathway for the County to rejoin the IWMA with a single seat
41 186 customers are enrolled in the customer assistance program as of 11/28/2023.
42 Staff have secured $140,288 in direct bill relief for eligible customers through LIHWAP as of 11/29/2023.
Budget Report Pg. 76 Page 164 of 241
Department Updates - Utilities
and a single vote on the IWMA Board. The Resolution to Adopt IWMA Joinder Agreement is scheduled
to be considered for approval by the City Council in January 2024.
Along with the City’s Sustainability and Natural Resources Team, staff debuted 30 new Sustainable SLO
recycling and trash bins in November 2023 as part of the $236,531 CalRecycle Beverage Container
Recycling Grant awarded to the City. The Big Belly manufacturer “smart” bins provide the City and waste
hauler with insights into waste volumes, minimizes overflow, reduces maintenance needs, while creating
cleaner, more beautiful streets, and public spaces. Staff continue to implement public outreach elements
of the grant.
Stormwater
The Stormwater program is an interdepartmental approach to meeting the stormwater requirements
outlined by the State Water Resources Control Board (SWRCB). Staff from Utilities, Public Works,
Community Development, and Administration departments all contribute to the underlying goal of
protecting water quality and meeting regulatory standards. Stormwater uses interventions like Low
Impact Development infrastructure (LID), groundwater infiltration and recharge, community education,
regulatory compliance, construction site management, and clean up and abatement of illicit discharges
to protect water quality.
The city received a notice of violation (NOV) in July 2023 from the 2022 Post-Construction Requirements
(PCR) Annual Report. To address the NOV and prevent future violations, staff in the Utilities and
Community Development Departments collaborated to perform field verification of structural control
measures (SCMs) for construction projects completed from September 2021 through June 2023. Field
verification of SCMs is now a required step prior to a final building inspection.
Staff have improved operations by working with IT staff to create an online portal for property owners
to submit their annual self-inspection of post construction requirements forms as required by the
Central Coast Regional Water Quality Control Board.
Safety
The Safety Program is currently comprised of a Safety Manager, who performs a variety of technical and
professional duties in the implementation and coordination of the occupational safety programs and
safety-related training for the Utilities Department.
In 2023, the Safety Manager visited each Utilities site multiple times, performed over forty risk
assessments via job shadowing, and discussed any findings with relevant managers and supervisors. This
position has been crucial to providing oversight and management of various hazardous material
remediation efforts. Currently, the Safety Manager is collaborating with the Human Resources
Department to review and publish the following Safety Programs: Hazardous Materials, Electrical Safety,
Hazard Communication, Hearing Conservation, Machine Guarding, Safety at Heights/Fall Prevention,
Respiratory Protection, Lead and Asbestos, Heat Illness, Exposure Control, Fire Prevention and Trenching
and Excavation.
Budget Report Pg. 77 Page 165 of 241
CIP Update
Section E: CIP Update
Table 35 - Completed and Ongoing Capital Project Update
Budget Report Pg. 78 Page 166 of 241
CIP Update
Table 36 - Status of Major and Legacy Projects in Design
Budget Report Pg. 79 Page 167 of 241
On track
Task delayed or potential setbacks with workable solutions
Problems emerged with no solution yet
MCG Task/ Action Completion
Date St
a
t
u
s
1.1 For All Members of the Community
1 ER,CV & FS a. Implement the relevant actions in the updated Economic Development Strategic Plan (EDSP)
focusing on those relevant to Economic Resiliency, Cultural Vitality and Fiscal Sustainability.Ongoing
2 ER,CV & FS
b.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)
Ongoing
3 ER,CV & FS
c.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)
Ongoing
4 ER,CV & FS
d.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.
Ongoing
5 ER,CV & FS e. Continue to update the employment scorecard and the economic activity scorecard. Ongoing
1.2 Business Support
6 ER,CV & FS a. 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. Ongoing
7 ER,CV & FS
b.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
8 ER,CV & FS c. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID
and the PCC. Ongoing
9 ER,CV & FS
d.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
10 ER,CV & FS e. Ensure broad and inclusive engagement in area and specific plans updated by the Community
Development Department to represent the needs of local businesses. Ongoing
11 ER,CV & FS
f.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.
FY25 Q4
12 ER,CV & FS g. Continue to support new and expanded private childcare options through the use of grant
funding and other programs. Ongoing
Section F: Major City Goal Update
MCG Key: ER,CV, FS= Economic Resiliency, Cultural Vitality & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA, OS, ST= Climate Action, Open Space & Sustainable Transportation
Section F: Major City Goal Update
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13 ER,CV & FS h. Continue to support the childcare options for school age children through the City's own
programs and programs in conjunction with other partners. Ongoing
14 ER,CV & FS
i. 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.
Ongoing
15 ER,CV & FS j. Represent the interests of the business community during the implementation of the
broadband strategic plan. Ongoing
1.3 Arts & Culture Support
16 ER,CV & FS a. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth, and
vitality of the Downtown. Ongoing
17 ER,CV & FS b. Continue to financially and operationally support Downtown SLO during the winter holidays
including incentivizing private participation through the matching program.Ongoing
18 ER,CV & FS c. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and
homelessness support. Ongoing
19 ER,CV & FS d. Develop a Council report and Study Session on downtown vacancies, the status and possible
options to address any issues identified. FY25 Q4
20 ER,CV & FS Develop an implementation plan for the recently adopted Access and Parking Management
Plan and begin execution of the plan.Ongoing
21 ER,CV & FS f. Begin construction of the Cultural Arts District Parking Structure.Under
Construction
22 ER,CV & FS g. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan
and Council Direction.Ongoing
1.4 Downtown Vitality
23 ER,CV & FS a. Continue to work with our community partners to ensure the Cultural Vitality of the City. Ongoing
24 ER,CV & FS b. Continue to execute the City's public art master plan. Ongoing
25 ER,CV & FS c. 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
26 ER,CV & FS d. 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
27 ER,CV & FS e. Continue the citywide banner program. Ongoing
28 ER,CV & FS
f. 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.
FY25 Q4
29 ER,CV & FS g. Initiate implementation of the consultant recommended phased approach to update the
City's historic resources inventory.FY24 Q2
30 ER,CV & FS h. Develop a Council Memorandum on the current base level of economic support for Arts and
Cultural activities across the various departments in the City. Complete
1.5 Practicing Fiscal Responsibility
31 ER,CV & FS b. Conduct a Study Session on alternative capital project delivery options and determine
whether Council wishes to proceed with a Charter Amendment. FY24 Q4
32 ER,CV & FS c. Implement a City fee program update. FY24 Q3
33 ER,CV & FS Continue to implement and enhance the City's sound financial management practices to
support stability of the organization and services provided to the community.Ongoing
34 ER,CV & FS d. Implement a Development impact fee (AB1600) study and update. FY24 Q3
Section F: Major City Goal Update
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35 ER,CV & FS e. Monitor Public Banking advances and alert the City Council to major changes. Ongoing
36 ER,CV & FS f. Continue to support and prioritize employee development and growth through investing in
resources to train, develop, and onboard new and transitioning employees. Ongoing
37 ER,CV & FS g. Continue to support employees in managing their workloads by reviewing and prioritizing
work efforts, goals, and balancing trade‐offs for a new workload.Ongoing
38 ER,CV & FS h. Continue to evaluate and adjust internal meetings to create more effective meeting
practices.Ongoing
39 ER,CV & FS i. Continue promoting cross‐department communication and collaboration amongst
employees.Ongoing
40 ER,CV & FS j. Continue to evaluate and enhance the training and usability of Oracle Cloud, the City's
Enterprise Resource Planning/Human Capital Management software.Ongoing
2.1 Establish Office of DEI
41 DEI
a. 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 community programs and
services.
Ongoing
42 DEI b. Work with Cal Poly and Cuesta to host interns. Ongoing
43 DEI
c. 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
44 DEI d. Continue to support and act as the staff liaison to the Human Relations Commission (HRC). Ongoing
45 DEI
e. 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
2.2 Develop & Implement DEI Strategic Plan
46 DEI a. Complete a DEI Strategic Plan for comprehensive DEI initiatives and programming for the
organization and community based on needs, priorities, and resource assessments.FY24 Q3
47 DEI b. Implementation of prioritized programs as outlined in the DEI Strategic Plan within available
resources.FY24 Q3
2.3 Workforce Recruitment & Retention
48 DEI a. Continue to enhance job descriptions and recruiting materials such as materials in Spanish or
in different formats to easy access. Ongoing
49 DEI b. Assess and develop enhancements processes such as implementing DEI‐focused screening
and interviewing trainings to personnel and interview panels.Ongoing
50 DEI c. Create and rollout DEI‐focused trainings for employees. Ongoing
51 DEI d. Examine policies and programs to support primary caretakers.Ongoing
52 DEI e. Continue communicating childcare options and resources for City employees; additional to
First 5 findings. Explore flex schedules, job share, remote options, etc.Ongoing
2.4 Inclusive & Equitable Workplace
53 DEI a. Develop and adopt a DEI statement for the organization. FY24 Q3
54 DEI b. Develop and implement a DEI module in new hire onboarding process. Ongoing
Section F: Major City Goal Update
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55 DEI c. Provide DEI‐related training for all staff of all levels (Council, Commission, Advisory Board,
Directors, Managers, Staff, etc.).Ongoing
56 DEI d. 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
2.5 Community‐based Policing & Restorative Practices
57 DEI a. Promote DEI best practices in Police Department (PD) recruting and hiring efforts. Ongoing
58 DEI b. 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
59 DEI
c. Continue to work with community partners (PAC and Roundtable) to give the community a
voice in policing and that 21st Century Policing Recommendations are implemented where
possible.
Ongoing
60 DEI d. Use Community partnerships to help build a 5‐year strategic plan to create transparency and
legitimacy.Ongoing
2.6 Cal Poly & Cuesta Partnerships
61 DEI
a. 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
62 DEI b. 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
63 DEI
c. Host City/Cal Poly quarterly roundtable (City & Cal Poly leadership, DEI Employee Committee,
HRC, Cal Poly students, DEI Leaders, Cuesta College, etc.) regarding community/student
experience, relationship‐building and partnership programs.
Ongoing
64 DEI
d. 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
65 DEI e. Contract to develop a feasbility study for a multicultural center. Ongoing
2.7 Access, Inclusion, Support for Underrepresented Communities
66 DEI a. Support the development and implementation of the Broadband Strategic Plan to ensure
access is equitable and pursue funding to fill gaps. Ongoing
67 DEI b. Continue to provide Community Academy program in even numbered years including
application outreach to underserved/underrepresented communities.Complete
68 DEI c. Complete training for applicable staff on the City's updated Public Engagement & Noticing
(PEN) to ensure diverse participation.Ongoing
2.8 Community Education & Programming
69 DEI a. 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.Ongoing
70 DEI b. Include DEI Manager Financial Planning Steering Committee meetings. Ongoing
71 DEI c. 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.Ongoing
72 DEI
d. 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
3.1 Implement Housing Element
Section F: Major City Goal Update
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73 HH
a. 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.
FY25 Q4
74 HH
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.
FY25 Q4
75 HH c. 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 FY25 Q4
76 HH d. 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.FY24 Q3
77 HH
e. Develop a scope of work for possible funding as part of the 2023‐25 Financial Plan
Supplement to update the City's parking requirements in consideration of best practices that
support housing production. Strategies may include lowering parking minimums, establishing
parking maximums, reducing parking requirements in areas close to services and transit
facilities, and other proven strategies.
FY24 Q3
78 HH
f. 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.
FY24 Q4
3.2 Implement Inclusionary Housing Ordinance
79 HH
a. 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
FY24 Q4
80 HH b. Increase homelessness response communications, resource sharing, and education, including
increased public use of Ask SLO app FY24 Q4
81 HH
c. Expand implementation of digital encampment management tool internally and for potential
countywide use or explore using other countywide systems shared with other regional
partners.
FY24 Q4
82 HH
d. 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
FY24 Q4
83 HH
e. 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 grants
FY24 Q4
84 HH
f. 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.
FY24 Q3
85 HH
g. 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
FY25 Q2
Section F: Major City Goal Update
Budget Report Pg. 84 Page 172 of 241
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3.3 Below Market Rate Portfolio Management
86 HH a. Environmental clean‐ups in creek and open space areas associated with abandoned personal
property and trash. (Funding approved on March 7, 2023)FY25 Q4
87 HH b. Environmental clean‐ups in City Parks and public spaces associated with abandoned personal
property and trash. (Funding approved on March 7, 2023)FY25 Q4
3.4 Financial Management
88 HH a. Maintain SLOPD bike patrol program as staffing allows FY25 Q4
89 HH
b. 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)
Complete
4.1 Provide Sustainability Resources to Achieve Council's Adopted Goals
90 CA, OS, ST a. 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
91 CA, OS, ST b. Continue to electrify the bus fleet as called for by CAP Lead by Example task 1.1.A.Ongoing
92 CA, OS, ST c. 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.FY25 Q2
93 CA, OS, ST
e. Apply the "Sustainable SLO" mark to City infrastructure and assets and conduct a general
awareness outreach program as funding and staff resources allow, as called for by CAP Lead by
Example task 1.1.B.
Ongoing
94 CA, OS, ST
f. 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.A
Ongoing
95 CA, OS, ST
g. 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.
Ongoing
96 CA, OS, ST
h. Continue to monitor impacts to Municipal Code 8.11 (All‐Electric New Buildings), and if
necessary return to Council with an alternative approach to achieving the City's climate action
goals as they relate to new buildings.
Complete
97 CA, OS, ST
i. 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.
Ongoing
98 CA, OS, ST
j. 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.
Ongoing
99 CA, OS, ST k. 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
100 CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees
by 2035 Ongoing
4.2 Continue to Update & Implement the Climate Action Plan ("CAP") for Carbon Neutrality
101 CA, OS, ST
a. 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
102 CA, OS, ST b. Complete installation of adopted trail systems at the Irish Hills Natural Reserve and at Miossi
Open Space.Ongoing
Section F: Major City Goal Update
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103 CA, OS, ST
c. Identify and implement trail alignment revisions, if feasible, and other solutions to reduce
erosion and wet weather closures and address trail user safety and enjoyment at Reservoir
Canyon Natural Reserve.
Ongoing
104 CA, OS, ST
d. Continue Open Space education activities including the "hikes with experts" series, Junior
Ranger Camp, and ongoing public information and programming, with emphasis on equity and
equitable access.
Ongoing
105 CA, OS, ST
e. 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 Plan
Ongoing
106 CA, OS, ST
f. Continue ongoing Ranger Service patrol of Open Space areas ensuring compliance with the
City Open Space regulations, the safety of users, and protection of natural resources values and
functions.
Ongoing
107 CA, OS, ST g. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan
(if adopted in May 2023).Ongoing
108 CA, OS, ST
h. 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.A
Ongoing
109 CA, OS, ST
i. 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
110 CA, OS, ST j. 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. Ongoing
111 CA, OS, ST k. Continue partnership with City Farm SLO to install site security and access measures and to
implement California Farmland Conservancy Program grant scope of work.Ongoing
4.3 Continue Preservation, Maintenance, & Enhancement of the City's Open Space & Urban Forest
112 CA, OS, ST
a. 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.
FY25 Q3
113 CA, OS, ST
b. 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.
FY25 Q3
114 CA, OS, ST
c. Active Transportation Plan (ATP) Tier 1 Network ‐ Foothill Complete Street Project: Continue
design of active transportation and safety improvements along the Foothill Blvd. corridor
between the western city limits and California Blvd., with goal to have shovel‐ready project for
construction in FY2025‐27.
FY25 Q1
115 CA, OS, ST
d. 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.
FY25 Q4
Section F: Major City Goal Update
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116 CA, OS, ST
e. 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
117 CA, OS, ST
f. 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.
FY25 Q4
118 CA, OS, ST
g. Active Transportation Plan (ATP) Tier 1 Network ‐ Foothill/California Railroad Crossing
Improvements: Complete design and initiate construction of federally‐funded pedestrian
safety improvements at railroad crossing.
FY25 Q4
119 CA, OS, ST
h. 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 to accommodate existing and future traffic demand. Includes reconstruction of
S. Higuera/Prado intersection with additional capacity and protected intersection features to
improve safety for pedestrians and cyclists.
Ongoing
120 CA, OS, ST
i. Active Transportation Plan (ATP) Tier 1 Network ‐ Prado/US 101 Interchange: Complete
project approval and environmental document phase of project, and initiate design phase for
new interchange, 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
121 CA, OS, ST
j. 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
122 CA, OS, ST
k. Transit Innovation Study Implementation: Begin planning implementation of strategies
recommended in Final Transit Innovation Study, including incorporation of near‐term strategies
as part of planned SLO Transit/RTA Short Range Transit Plan update, as called for in CAP
Connected Community Task 4.2.A and in the APMP Strategies 1.C.
Ongoing
123 CA, OS, ST
l. Reassess the viability of launching a citywide bikeshare system, with ongoing coordination
with Cal Poly as called for in CAP Connected Communities Task 2.2.A and the APMP strategy
1.B.1. Solicit potential bikeshare system operators if staffing resources allow and this can be
done without diverting resources from delivering priority active transportation infrastructure
projects.
FY25 Q4
124 CA, OS, ST
m. Public EV Chargers ‐ Enable public EV charger deployment on City property, support EV
charger installation on private property, and deploy EV chargers in low‐income areas of the City
as called for in CAP Connected Community Tasks 6.1.A, 6.1.B, and 6.1.D.
Ongoing
4.4 Alternative & Sustainable Transportation
125 CA, OS, ST
a. 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.
FY25 Q4
126 CA, OS, ST
b. 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.
FY25 Q4
Section F: Major City Goal Update
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127 CA, OS, ST d. Evaluate opportunities to integrate climate considerations in the City's Engineering Standards
and Specifications as called for in CASE program MH‐1.6.Ongoing
128 CA, OS, ST e. Provide post‐disaster recovery resources and emergency preparedness education to
vulnerable community members as called for in CASE program MH‐1.10.Ongoing
129 CA, OS, ST f. Initiate the development of Wildland‐Urban‐Interface Defensible Space and Home Hardening
Program as called for in CASE program FI‐5.15.FY24 Q4
130 CA, OS, ST g. 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.Ongoing
131 CA, OS, ST
h. In partnership with Zone 9, seek funding to initiate the Waterway Management Plan update
to incorporate climate‐informed flood risk as called for in CASE program FL‐3.7. Initial work in
this Financial Plan period is envisioned to include identifying and securing funding, developing a
project scope, and drafting a request for proposals.
FY25 Q4
132 CA, OS, ST i. Develop an Urban Creeks Vegetation Management Plan as called for in CASE program FL‐3.10. Ongoing
133 CA, OS, ST j. Incorporate Traditional Ecological Knowledge into open space management decisions as
called for in CASE program OP‐7.2.Ongoing
134 CA, OS, ST k. Implement the Mid‐Higuera Bypass Project.Ongoing
135 CA, OS, ST l. Implement the Laguna Lake Dredging and Sediment Management Project. Ongoing
136 CA, OS, ST m. Implement Silt Removal Projects from Priority Creek Locations.Ongoing
137 CA, OS, ST n Implement existing Community Wildfire Protection Plan and initiate focused update in 2024. Ongoing
4.5 Planning & Implementation for Resilience
138 CA, OS, ST a. Participate in the Cal Poly Climate Corps Fellowship program to build staff capacity as called
for in the CAP. Ongoing
139 CA, OS, ST
b. 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
140 CA, OS, ST
c. 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
141 CA, OS, ST d. Support regional efforts to develop the workforce required to implement the Climate Action
Plan as called for in CAP task 2.2.A.Ongoing
142 CA, OS, ST e. 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 1 Ongoing
143 CA, OS, ST f. 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.FY24 Q3
144 CA, OS, ST
g. 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
145 CA, OS, ST h. 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
146 CA, OS, ST i. Complete steps and present recommendations and options to maximize the reuse of
wastewater per the "Road Map" presented to the City Council.Ongoing
Section F: Major City Goal Update
Budget Report Pg. 88 Page 176 of 241
Table A1: General Fund Revenue Detail FY 2022‐23
Actuals Total Budget Actual Variance**
%
Received Revised Budget Total Changes
1 Tax and Franchise Revenue 102,133,765$ 100,527,765$ 44,010,515$ (56,517,250)$ 44% 102,210,442$ 1,682,677$
2 Sales Tax (Bradley Burns) (July‐Nov)21,865,468 22,578,995 8,994,782 (13,584,213) 40% 22,578,995 ‐
3 Local Revenue Measure G20* (July‐Nov)30,508,731 30,262,098 12,409,186 (17,852,912) 41% 30,262,098 ‐
4 Safety Prop 172 (July‐Nov)544,521 498,988 264,510 (234,478) 53% 550,000 51,012
5 Property Tax 22,216,031 21,999,786 9,799,735 (12,200,051) 45% 22,863,770 863,985
6 Transient Occupancy Tax (July‐Nov)11,037,037 10,704,000 4,910,337 (5,793,663) 46% 10,704,000 ‐
7 Utility User Tax (July‐Nov)6,904,194 5,710,320 2,334,838 (3,375,482) 41% 6,332,000 621,680
8 Business Tax 3,281,010 3,252,293 2,976,154 (276,139) 92% 3,252,293 ‐
9 Franchise Fees 2,349,603 1,854,000 680,073 (1,173,927) 37% 2,000,000 146,000
10 Gas Tax* (July‐Dec)1,239,701 1,389,292 700,591 (688,701) 50% 1,389,292 ‐
11 Gas Tax (SB1)* (July‐Nov)1,059,724 1,177,994 483,061 (694,933) 41% 1,177,994 ‐
12 Cannabis Tax (July‐Nov)1,127,744 1,100,000 457,248 (642,752) 42% 1,100,000 ‐
*Special Revenue or Sub‐Fund of the General Fund
Fees for Service and Other Revenue
13 Development Review 6,424,716$ 6,275,536$ 3,165,789$ (3,109,747)$ 50% 6,275,536$ ‐$
14 Building Permits 2,505,378 2,561,860 1,454,657 (1,107,203) 57% 2,561,860 ‐
15 Code Enforcement Fines 46,560 79,617 11,324 (68,293) 14%79,617 ‐
16 Development Review Fees 330,002 387,008 168,096 (218,912) 43% 387,008 ‐
17 Encroachment Permits 418,019 324,437 172,527 (151,910) 53% 324,437 ‐
18 Engineering Development Review 153,878 160,058 46,475 (113,583) 29% 160,058 ‐
19 Infrastructure Plan Chk & Inspection 927,550 970,693 570,104 (400,589) 59% 970,693 ‐
20 Plan Check Fees 1,371,473 1,180,266 542,686 (637,580) 46% 1,180,266 ‐
21 Planning & Zoning Fee 744,868 611,597 199,921 (411,676) 33% 611,597 ‐
22 TIPP‐ Contra Revenue Account (73,012) ‐ ‐ ‐ ‐ ‐
23 Parks & Recreation 1,813,831$ 2,021,599$ 981,734$ (1,039,865)$ 49% 2,025,958$ 4,359$
24 Adult Athletic Fees 102,428 161,598 53,824 (107,774) 33% 138,000 (23,598)
25 Aquatics Daily Use Fees 86,573 121,000 69,163 (51,837) 57%130,000 9,000
26 Driving Range Fees 10,901 13,000 6,711 (6,289) 52%13,000 ‐
27 Golf Cart Rentals 19,424 25,000 13,106 (11,894) 52%25,000 ‐
28 Golf Greens Fees 167,997 220,000 90,106 (129,894) 41% 200,000 (20,000)
29 Golf Lesson Fees 699 ‐ 416 416 ‐ ‐
30 Golf Rental Fees 5,140 6,000 2,765 (3,235) 46%6,000 ‐
31 Indoor Rental & Use Fees 40,251 65,100 39,203 (25,897) 60%65,100 ‐
32 Instruction Fees 76,827 102,722 24,981 (77,741) 24%92,722 (10,000)
33 Junior Ranger Camps 8,361 5,230 ‐ (5,230) 0%8,000 2,770
34 Library Rental 3,493 6,500 1,060 (5,440) 16%6,500 ‐
35 Multi Day Swim Passes 67,049 55,000 36,740 (18,260) 67%65,000 10,000
36 Other Parks & Recreation Revenue 61,339 74,000 78,372 4,372 106%74,000 ‐
37 Outdoor Rental & Use Fees 104,002 135,003 93,357 (41,646) 69% 135,003 ‐
38 Sales Taxable 7,242 10,000 4,886 (5,114) 49%10,000 ‐
39 Special Events ‐ City Sponsered 1,345 3,400 4,037 637 119%4,037 637
40 Special Events Insurance 10,478 12,000 5,003 (6,998) 42% 12,000 ‐
41 Swim Instruction Fees 103,246 82,700 13,249 (69,451) 16% 100,000 17,300
42 Therapy Pool Fees 5,324 16,000 4,507 (11,493) 28%16,000 ‐
43 Youth Athletic Fees 94,054 57,750 8,299 (49,451) 14%76,000 18,250
44 Youth Services Camps 95,812 155,980 138,166 (17,814) 89% 155,980 ‐
45 Youth Services Childcare 708,004 663,616 281,315 (382,301) 42% 663,616 ‐
46 Special Event App/Permit 33,841 30,000 12,471 (17,529) 42%30,000 ‐
Mid‐Year ChangesFY 2023‐24
Appendix A - Revenue
Appendix A ‐ Detailed Financials
Budget Report Pg. 89 Page 177 of 241
Table A1: General Fund Revenue Detail FY 2022‐23
Actuals Total Budget Actual Variance**
%
Received Revised Budget Total Changes
Mid‐Year ChangesFY 2023‐24
47 Fire 1,612,981$ 1,577,836$ 695,328$ (882,508)$ 44% 1,647,854$ 70,018$
48 Cal Poly Fire Services 362,109 361,684 249,694 (111,990) 69% 432,337 70,653
49 CUPA Inspection Fees 217,335 172,800 2,703 (170,097) 2%172,800 ‐
50 Fire Alarm Permits 4,743 10,010 351 (9,659) 4%10,010 ‐
51 Fire Department Permits 99,591 108,000 100,910 (7,090) 93% 108,000 ‐
52 Fire Plan Check & Inspection 363,875 350,000 171,398 (178,602) 49% 350,000 ‐
53 Medical ER Recovery 209,566 218,452 111,433 (107,019) 51% 217,817 (635)
54 Other Fire Department Revenue (430) 5,890 11,625 5,735 197%5,890 ‐
55 R1 Inspection Fees 356,192 351,000 47,215 (303,785) 13% 351,000 ‐
56 Police 763,511$ 689,420$ 381,581$ (307,839)$ 55% 745,003$ 55,583$
57 Accident Reports 4,884 3,400 1,542 (1,858) 45%3,400 ‐
58 Administrative Citations ‐ Safety 148,616 125,833 116,230 (9,603) 92% 155,833 30,000
59 Alarm Permits ‐ Contract (Police)190,955 150,000 128,446 (21,554) 86% 170,000 20,000
60 Collision Investigation 972 3,000 565 (2,435) 19%1,000 (2,000)
61 DUI Cost Recovery 28,138 20,417 44,633 24,216 219%45,000 24,583
62 Miscellaneous Revenue 10,031 ‐ ‐ ‐ ‐ ‐
63 Other Police Revenue 262,032 267,503 68,796 (198,708) 26% 267,503 ‐
64 Police Department Permits 3,826 4,011 3,006 (1,005) 75%4,011 ‐
65 Police Issued Parking Fines 53,115 70,000 6,257 (63,743) 9%53,000 (17,000)
66 Property Release Fees 1,181 ‐ 200 200 ‐ ‐
67 Second Response Fees 482 1,200 1,029 (171) 86%1,200 ‐
68 Tobacco Permits 32,339 30,450 ‐ (30,450) 0%30,450 ‐
69 Tow Release Fees 21,974 12,000 9,778 (2,222) 81%12,000 ‐
70 Witness Fees 4,965 1,606 1,100 (506) 68%1,606 ‐
71 Business Licenses 669,968$ 666,600$ 673,764$ 7,164$ 101% 694,774$ 28,174$
72 Business Licenses 522,674 459,000 523,774 64,774 114% 523,774 64,774
73 Cannabis Operator License 147,295 207,600 149,990 (57,610) 72% 171,000 (36,600)
74 Other Revenue 2,662,834$ 1,032,771$ 1,293,649$ 260,877$ 125% 1,732,771$ 700,000$
75 Damage to City Property 127,130 5,290 18,857 13,567 356%5,290 ‐
76 Federal Grants 21,031 ‐ 23,112 23,112 ‐ ‐
77 Fines & Fortfietures 146,992 153,071 53,036 (100,035) 35% 153,071 ‐
78 Impact Fees and Special Assessments 88,705 ‐ 18,001 18,001 ‐ ‐
79 Interest on Investment 1,541,440 230,000 701,770 471,770 305% 930,000 700,000
80 Long Term Debt Proceeds ‐ ‐ 7,002 7,002 ‐ ‐
81 Miscellaneous Revenue 543,999 484,000 429,410 (54,590) 87% 484,000 ‐
82 Other Revenue 10,375 2,566 2,879 313 112%2,566 ‐
83 Rent & Lease Revenue 183,162 157,845 39,582 (118,263) 25% 157,845 ‐
84 Grants & Subventions 1,408,344$ 1,005,817$ 1,241,264$ 235,447$ 123% 1,005,817$ ‐$
85 AB939 Reimbursement 392,846 354,511 144,128 (210,383) 41% 354,511 ‐
86 Federal Grants 100,000 315,000 315,000 ‐ 100% 315,000 ‐
87 Law Enforcement SB229 Grant 181,371 140,000 116,659 (23,341) 83% 140,000 ‐
88 Mutual Aid Reimbursements 386,095 ‐ 483,155 483,155 ‐ ‐
89 Other Grants/Subventions 110,882 14,900 137,709 122,809 924%14,900 ‐
90 Police Training Grant (POST)56,166 61,406 9,905 (51,501) 16%61,406 ‐
91 State Grants & Subventions 118,152 ‐ 8,958 8,958 ‐ ‐
92 Zone 9 Streambed Clearance 62,833 120,000 25,749 (94,251) 21% 120,000 ‐
93 Grand Total 117,489,950$ 113,797,345$ 52,443,623$ (61,353,721)$ 46% 116,338,155$ 2,540,810$
**Many revenues are "lumpy" in nature and may be collected entirely in the beginning or end of the year. Unless the budget is being adjusted, it is
considered on track.
Appendix A - Revenue
Budget Report Pg. 90 Page 178 of 241
Table A2: Assessment Revenue FY 2022‐23
Actuals Total Budget Actual Variance
%
Received Revised Budget Total Changes
1 202‐Downtown 269,523$ 275,400$ 259,648$ (15,752)$ 94% 275,400$ ‐$
2 47101‐DT Assoc. Assessment*269,523$ 275,400$ 259,648$ (15,752)$ 94% 275,400$ ‐$ ‐$
3 208‐Tourism Bid Fund 2,226,411$ 2,140,800$ 886,776$ (1,254,024)$ 41% 2,140,800$ ‐$
4 44101‐Interest on Investment 18,963$ ‐$ 7,797$ 7,797$ ‐$ ‐$
5 44107‐Investment FMV Adjustment (1,943)$ ‐$ 1,376$ 1,376$ ‐$ ‐$
6 47102‐TBID Assessment Revenue 2,209,390$ 2,140,800$ 877,603$ (1,263,197)$ 41% 2,140,800$ ‐$
**The majority of this revenue is collected at the beginning of the fiscal year during the annual business license renewal period. Although the City collects
this revenue, it is distributed to the Downtown Association.
FY 2022‐23 Mid‐Year Changes
Appendix A - Revenue
Budget Report Pg. 91 Page 179 of 241
On track
Trending high or low but identified solution or savings in a different cost center
Trending high or low with no identified solution
Table A3: General Fund Operating Expenditures
by Department/Cost Center Total Budget Year‐to‐date
Actual
Funds
Available
Amount
% Expended
(or committed)St
a
t
u
s
Admin/IT 12,184,186$ 6,782,052$ 5,402,134$ 56%
1001‐City Administration 1,764,843$ 957,506$ 807,337$ 54%
1002‐City Council 244,185$ 115,705$ 128,479$ 47%
1003‐Cultural Activities 365,161$ 348,269$ 16,892$ 95%
1004‐Economic Development 1,216,861$ 892,580$ 324,282$ 73%
1005‐Natural Resource Protection 1,480,624$ 577,346$ 903,279$ 39%
1007‐Community Promotion 441,535$ 358,986$ 82,549$ 81%
1009‐Community Services Group 350$ 47$ 304$ 13%
1010‐Office of DEI 722,889$ 418,534$ 304,355$ 58%
1021‐City Clerk 765,004$ 311,165$ 453,840$ 41%
1101‐Network Services 3,682,179$ 1,981,627$ 1,700,552$ 54%
1103‐Information Services 1,500,554$ 820,289$ 680,265$ 55%
City Attorney 1,668,051$ 972,240$ 695,811$ 58%
1501‐City Attorney 1,668,051$ 972,240$ 695,811$ 58%
Community Development Dept.8,807,387$ 4,510,454$ 4,296,932$ 51%
4001‐CDD Admin 962,448$ 594,029$ 368,419$ 62%
4002‐Commissions and Committees 37,240$ 4,053$ 33,187$ 11%
4003‐Planning 2,115,384$ 941,195$ 1,174,189$ 44%
4004‐Engineering 1,235,933$ 601,669$ 634,264$ 49%
4006‐Building and Safety 3,246,148$ 1,582,842$ 1,663,306$ 49%
4008‐Housing Policy and Homelessness 1,210,233$ 786,665$ 423,568$ 65%
CSG Admin 830,784$ 498,044$ 332,740$ 60%
1009‐Community Services Group Admin 830,784$ 498,044$ 332,740$ 60%
Finance 2,485,965$ 1,345,715$ 1,140,250$ 54%
2001‐Financial Administration 363,621$ 197,824$ 165,797$ 54%
2002‐Budget 227,653$ 115,699$ 111,955$ 51%
2003‐Revenue Management 548,176$ 337,573$ 210,603$ 62%
2004‐Purchasing 246,560$ 101,662$ 144,898$ 41%
2005‐Accounting 1,099,955$ 592,957$ 506,998$ 54%
Fire 15,293,168$ 9,064,696$ 6,228,472$ 59%
8501‐Fire Administration 1,173,220$ 601,023$ 572,198$ 51%
8502‐Emergency Reponse 11,828,869$ 7,234,545$ 4,594,324$ 61%
8503‐Hazard Prevention 1,037,289$ 526,295$ 510,995$ 51%
8504‐Training Services 113,448$ 85,987$ 27,461$ 76%
8505‐Recruit Academy 89,261$ 13,661$ 75,600$ 15%
8506‐Fire Apparatus Services 490,601$ 310,103$ 180,498$ 63%
8507‐Fire Station Facility Support 44,457$ 12,288$ 32,170$ 28%
8510‐Mobile Crisis Unit 320,579$ 162,376$ 158,203$ 51%
8599‐Emergency Management 195,444$ 118,420$ 77,024$ 61%
FY 2023‐24
Appendix A ‐ Detailed Financials
Appendix A - Operating Expenditures
Budget Report Pg. 92 Page 180 of 241
Table A3: General Fund Operating Expenditures
by Department/Cost Center Total Budget Year‐to‐date
Actual
Funds
Available
Amount
% Expended
(or committed)St
a
t
u
s
FY 2023‐24
Human Resources 2,233,158$ 1,239,827$ 993,331$ 56%
3001‐Human Resources 2,179,800$ 1,200,135$ 979,665$ 55%
3003‐Wellness Program 53,358$ 39,692$ 13,666$ 74%
Non‐Dept/Support Services (see note 1)1,868,469$ 258,644$ 1,609,824$ 14%
2006‐Finance Support Services 767,586$ 118,357$ 649,228$ 15%
2007‐Finance NonDepart 1,100,883$ 140,287$ 960,596$ 13%
Parks & Recreation 5,706,488$ 2,761,044$ 2,945,444$ 48%
7001‐Recreation Administration 919,910$ 427,639$ 492,271$ 46%
7002‐Recreation Facilities 355,639$ 179,790$ 175,849$ 51%
7003‐Youth Services 1,413,794$ 645,295$ 768,499$ 46%
7004‐Community Services 696,591$ 272,854$ 423,738$ 39%
7005‐Ranger Service 898,725$ 463,480$ 435,245$ 52%
7006‐Aquatics 605,119$ 343,805$ 261,314$ 57%
7007‐Golf Course 806,211$ 427,451$ 378,759$ 53%
7008‐Jack House 10,500$ 731$ 9,769$ 7%
Police 22,278,369$ 13,262,834$ 9,015,534$ 60%
8001‐Police Administration 2,466,114$ 1,533,650$ 932,464$ 62%
8002‐Patrol 11,933,187$ 7,279,086$ 4,654,101$ 61%
8003‐Investigations 3,064,087$ 1,845,668$ 1,218,419$ 60%
8004‐Police Support Services 3,598,872$ 1,909,358$ 1,689,514$ 53%
8005‐Neighborhood Services 302,867$ 153,359$ 149,508$ 51%
8006‐Traffic Safety 913,242$ 541,714$ 371,528$ 59%
Public Works 17,918,390$ 10,458,882$ 7,459,508$ 58%
5001‐Public Works Administration 1,474,919$ 825,337$ 649,583$ 55%
5002‐Parks Maintenance 4,115,300$ 2,568,102$ 1,547,199$ 62%
5003‐Swim Center Maintenance 673,536$ 338,817$ 334,719$ 50%
5004‐Urban Forest Services 263,870$ 119,858$ 144,012$ 45%
5005‐Facilities Maintenance 1,464,833$ 847,871$ 616,962$ 58%
5006‐Street/Sidewalk Maintenance 2,493,434$ 1,451,705$ 1,041,729$ 58%
5007‐Traffic Signals and Lighting 636,999$ 350,134$ 286,865$ 55%
5008‐Fleet 1,455,937$ 997,775$ 458,162$ 69%
5009‐CIP Project Eng 2,956,755$ 1,562,827$ 1,393,927$ 53%
5010‐Transportation Plan and Eng 1,075,330$ 543,544$ 531,786$ 51%
5301‐Stormwater 1,307,476$ 852,911$ 454,564$ 65%
6107‐Solid Waste Recycling 464,836$ 266,919$ 197,916$ 57%
Grand Total 91,739,250$ 51,421,352$ 40,317,898$ 56%
Note 1: These cost centers includes the budget for equity adjustments and various other wage adjustments or
contingencies that were approved after initial departmental budget development (February 2023). This budget line
item is used to offset the overages if departments end the year over budget in staffing. For FY 2023‐24, staff expect
the contingency budget to be fully utilized.
Appendix A - Operating Expenditures
Budget Report Pg. 93 Page 181 of 241
Table A4: Enterprise Fund Operating
Expenditures by Fund/Cost Center*Total Budget Year‐to‐date
Actual
Funds
Available
Amount
% Expended
(or committed)St
a
t
u
s
601‐Water Fund 20,551,226$ 13,724,875$ 6,826,351$ 67%
6001‐Water Administration/Engineering 1,553,770$ 911,435$ 642,335$ 59%
6002‐Water Source of Supply 11,781,268$ 9,221,325$ 2,559,943$ 78%
6003‐Water Treatment 4,220,634$ 1,940,947$ 2,279,687$ 46%
6004‐Water Distribution 2,035,155$ 1,138,998$ 896,157$ 56%
6005‐Water Resources 630,942$ 256,382$ 374,560$ 41%
6105‐Utility Billing 326,583$ 255,789$ 70,794$ 78%
6106‐Water Quality Lab 2,875$ ‐$ 2,875$ 0%
602‐Sewer Fund 9,342,462$ 5,411,248$ 3,931,214$ 58%
6101‐Wastewater Admin and Eng 1,699,401$ 1,002,832$ 696,569$ 59%
6102‐Wastewater Collection 1,492,791$ 868,368$ 624,423$ 58%
6103‐Environmental Programs 323,423$ 150,355$ 173,068$ 46%
6104‐Water Resource Recovery 4,642,180$ 2,716,012$ 1,926,168$ 59%
6105‐Utility Billing 326,583$ 255,847$ 70,735$ 78%
6106‐Water Quality Lab 858,085$ 417,834$ 440,251$ 49%
611‐Parking Fund 3,532,389$ 2,333,230$ 1,199,159$ 66%
5101‐Parking Admin 3,532,389$ 2,333,230$ 1,199,159$ 66%
621‐Transit Fund 5,351,471$ 3,942,147$ 1,409,324$ 74%
5201‐Transit Ops and Maint 5,351,471$ 3,942,147$ 1,409,324$ 74%
*Excludes transfers
Table A5: Special Funds Operating
Expenditures by Fund/Cost Center*Total Budget Year‐to‐date
Actual
Funds
Available
Amount
% Expended
(or committed)St
a
t
u
s
202‐Downtown 275,400$ 259,241$ 16,159$ 94.13%
1008‐Downtown Association Administration 275,400$ 259,241$ 16,159$ 94.13%
208‐Tourism Bid Fund 2,266,990$ 1,668,698$ 598,292$ 73.61%
1006‐Tourism and Bid Promotion 2,266,990$ 1,668,698$ 598,292$ 73.61%
406‐Public Safety Equipment Replacement Fund 633,752$ 598,192$ 35,560$ 94.39%
8002‐Patrol 29,400$ 29,250$ 150$ 99.49%
8502‐Emergency Reponse (Fire)604,352$ 568,942$ 35,410$ 94.14%
802‐Insurance ISF Fund 5,555,473$ 4,018,044$ 1,537,429$ 72.33%
3050‐Insurance ISF 5,555,473$ 4,018,044$ 1,537,429$ 72.33%
*Excludes transfers
FY 2023‐24
FY 2023‐24
Appendix A - Operating Expenditures
Budget Report Pg. 94 Page 182 of 241
R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AMENDMENTS TO THE 2023-24
BUDGET APPROPRIATIONS
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City
Manager has submitted the 2023-25 Budget Supplement to the Council for review and
consideration on June 6, 2023; and
WHEREAS, the Council appropriated the 2023-24 budget allocation including
operating, debt service, and capital improvement plan budgets; and
WHEREAS, in accordance with Budget Policy G under Financial Plan Purpose
and Organization, the Council will formally review the City’s fiscal condition, and am end
appropriations, if necessary, six months after the beginning of the year; and
WHEREAS, in accordance with Municipal Code Article VIII. Section 804, at any
meeting after the adoption of the budget, the Council may amend or supplement the
budget by motion adopted by a majority vote of the Council; and
WHEREAS, in accordance with Fiscal Policy Section 8, Policy 1, the City will give
priority to applying unassigned fund balance to additional discretionary payments to
CalPERS and Infrastructure Investments; and
WHEREAS, based on the Fiscal Year 2022-23 audited financial statements
presented to Council on January 23, 2024, the General Fund had an unassigned fund
balance of $8,275,453 and the Local Revenue Measure had an unassigned fund balance
of $3,872,937; 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, in accordance with Resolution 11429 (2023 Series) the City Manager
has the authority to use General Fund Reserve balance to pay for operating and capital
expenditures related to the January and March 2023 storm events; and
WHEREAS, on July 11, 2023, Council approved the temporary deferral of the
Preferential Parking District Program with a plan that staff come back to Council in the
Spring of 2024 with a public engagement and outreach plan and study session, with the
goal to adopt a revised program by Fall 2024; and
Page 183 of 241
Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, staffing resources within the Parking Program have been strained due
to the increased priority and condensed schedule of the Parking Rate Study occurring in
the Winter/Spring of 2024, as well as the current vacancy of the Parking Program
Manager, and a planned leave of the Mobility Services Deputy Director.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The 2023-24 revenue and expenditure budgets are hereby amended
to reflect the changes outlined in the 2023-24 Mid-Year Budget report.
SECTION 2. The City will make a $2,437,211 additional discretionary payment to
CalPERS.
SECTION 3. The City will continue to use the General Fund Reserve balance to
pay for operating and capital expenditures related to the January and March 2023 storm
events.
Page 184 of 241
Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 4. Staff plans to come to Council in late 2024 or early 2025 for a
Preferential Parking District Program study session and public engagement and outreach
plan, with a goal to adopt a revised program in mid-2025.
Upon motion of _______________, seconded by _____________, and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2024.
___________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purrington,
City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington,
City Clerk
Page 185 of 241
Page 186 of 241
1
FY 2023-24 Mid Year Budget Review
February 6, 2024
2
City Manager Message
•Ended FY 2022-23 with revenues exceeding projections
•Ability to make one-time investments and repay reserve quicker
•In part, thanks to strong fiscal policies.
Mid-Year: On track with budget and overall strong financial condition
•Projected increases in Sales Tax Revenue
•Updated fee revenue forecasts (fee study to be complete in Spring)
Structural gap in outer years to be addressed with supplement
•Labor Pressure
•Development and Population Growth
•CIP Imbalances
•Alignment with Major City Goals
•Continued market/economic/employment turbulence
Consideration of Planning for the Future
Discipline and Focus! We can do anything, we can’t do everything
3
Recommendation
1.Receive and file the Fiscal Year 2023-24 Mid Year Quarter Budget report; and
2.Adopt a draft resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, approving amendments to the Fiscal Year 2023-24 Budget
Appropriations” to:
a.Amend the 2023-24 revenue and expenditure budgets to reflect the changes
outlined in the 2023-24 Mid-Year Budget Report; and
b.Make a $2,437,211 additional discretionary payment to CalPERS; and
c.Continue to use the General Fund Reserve balance to pay for operating and
capital expenditures related to the January and March 2023 storm events
In accordance with Budget Policy G under Financial Plan Purpose and Organization, the Council will formally review the City’s fiscal
condition, and amend appropriations, if necessary, six months after the beginning of the year. Further, in accordance with Fiscal Policy Section
8, Policy 1, the City will give priority to applying unassigned fund balance to additional discretionary payments to CalPERS and Infrastructure
Investments. In accordance with Municipal Code Article VII. Section 804, at any meeting after the adoption of the budget, the Council may
amend or supplement the budget by motion adopted by a majority vote of the Council
4
2023-25 Financial Plan
2023-24
Budget
Adopted
2024-25
Supplement
Adopted
2024-25 Mid-
Year Review
1st Qtr
Review
3rd Qtr
Review
1st Qtr.
Review
3rd Qtr
Review4th Qtr.
Review
4th Qtr
Review
2025-27
Financial Plan
Prep
We are here:
6-month review
2023-24
Mid-Year
Review
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
5
Mid-year Revenue Overview
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
General Fund Revenue (in thousands)Budget Actuals % Received
Midyear
Revised
Budget
Total Midyear
Changes
Sales & Use Tax 22,579 8,995 40%22,579 -
Local Transaction Tax (LRM G-20)30,262 12,409 41%30,262 -
Property Taxes 22,000 9,800 45%22,864 864
Transient Occupancy Tax 10,704 4,910 46%10,704 -
Other Taxes 14,983 7,896 53%15,802 819
Fees for Service & Other 13,270 8,433 64%14,128 858
Total $ 113,797 $ 52,444 46%$ 116,338 $ 2,541
Budget Report Pg. # 2, 89-91
6
Mid-year Expenditure Overview
Staffing
46%
Contract Services
68%
Other OpEx
58%
Utilities
46%
Percent expended* by type
*includes obligations
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
All departments are broadly on track to their respective budgets
Overtime is trending high in Public Safety
Budget Report Pg. # 5, 92-94
7
Trends and Updated Forecast Assumptions
Updated items in forecast:
•Storm assumptions based on year-to-date spending
•CalPERs unfunded liability assumptions based on 2023 actuarial assessment
•Some tax revenue projection changes (property, UUT)
Not updated in forecast:
•Sales tax projections (the City’s #1 source of revenue)
•Future expenditure considerations (CIP imbalances, core services growth)
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
Budget Report pg. # 7-10
2023-24 2024-25 2025-26 2026-27 2027-28
$0 $150 $985 $(947)$(3,467)
Projected Unassigned Fund Balance at Year End (in thousands)
8
Mid-Year Budget Recommendations
What is unassigned fund balance?
Any revenue above expenditures from prior year that is not assigned
for a specific purpose. Audited financials were presented to Council on
January 23, 2024.
What should it be used for?
Per Section 8 of the City’s Fiscal Policies, fund balance from the prior
year is considered “one-time” in nature and should be prioritized for:
a.Additional discretionary payments to CalPERS
b.Infrastructure investments
c.Emerging Health and Safety needs of the community
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
Budget Report pg. # 11
9
General Fund Unassigned Fund Balance
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
Planned Investments for Future Budget Cycle
•Investment into Infrastructure Investment Fund
$3.8 million
Recommend
$2.4 M CalPERS
ADP
(all funds combined)
Investments in FY 2023-24
•Repayment to infrastructure investment fund
•Minor operational needs
•Economic vitality and cultural arts
$4.5 million
Budget Report pg. # 12-14
10
Local Revenue Measure Unassigned Fund Balance
Budget Report pg. # 14-16
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
•FY 2022-23 Unassigned balance is $3,872,937
•Recommended investment in:
•Infrastructure – Arterial roads, surface streets and paving
•Public Safety Investments
•Vehicles at end of life
•Righetti Park Investment
•Storm response/repairs
•Align with LRM priorities
•Supported by the Revenue Enhancement Oversight Commission
(REOC) on 1/25/24
LRM is sub-fund of the
General Fund and is included
in the committed “general
government programs”
11
Capital Reserve $1.9 million allocation of reserve for emergency
hillside repairs
Other Mid-year Budget Recommendations
Information Technology
Replacement Fund
Completed Projects/Transfers
$33,200 for EnerGov Configurations
$680,000 reallocation of funds from recently
completed
Budget Report Pg. # 16-18
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
12
Why invest in infrastructure?
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
1.The cost of projects is going up significantly and by getting funding into the community now , it
is a better return on investment than waiting to do projects later at a much higher cost.
2.By allocating funding into the City’s Infrastructure Investment Fund, it keeps these funds liquid in
case of an emergency while the reserve is being utilized for emergency storm work.
Cost in 2019 Cost in 2023 Increase Variance %
Dozen Eggs $1.54 $2.51 $0.97 +63.3%
Silt Removal (CY)$94.74 $116.00 $21.26 +22%
Hot mix (AC ) per TON $114.75 $161 $46.25 +40%
PCC Sidewalk (SF)$19.00 $30.00 $11.00 +58%
Adjust Utility Collars to grade (EACH)$1,900 $2,965.00 $1,065.00 +56%
Table 6: Impact of inflation
13
Water Fund
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
Highlights
•Revenues and expenditures on track
•Adjustments to revenue budget based on
grant and debt proceeds timing
•Forecast severely impacted by inflation
and chemical/electric costs
Resource Efficiencies Over Time
Budget Report pg. # 19-23
Mid-Year Recommendations:
One-time allocations for critical needs
•Ozone Containment Repairs ($132k)
•Arc Flash Survey ($180k)
•Fire hydrant expenses ($92k)
14
Sewer Fund
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
Budget Report pg. # 24-27
Highlights
•Revenues and expenditures on track
•On July 1st, 2023 sewer rates were increased by 4%, largely offset by reductions in the
default sewer cap from 5 to 4 units and an extremely wet winter 2023 which dilutes the sewer
cap contribution
•Staff continue to pursue grant funding including $1.4 M Cal OES Hazard Mitigation funds and
a $0.1 M Proposition 1 Integrated Regional Water Management Implementation Grant
•Forecast severely impacted by inflation and chemical/electric costs
Mid-Year Recommendations:
One-time allocations for critical needs
•Arc Flash Survey ($40k)
•Sewer Inflow and Infiltration Reduction ($50k)
15
Parking Fund
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
Highlights
•Revenue and expenditures are on track with budget (after consideration of
adjustments for approved operational changes from 11/7/23).
•Even with relaxed enforcement, fine revenue is exceeding projections.
•Some expenditure lines over budget due to high merchant fees and increased
cost from outreach during the first half of the year.
•Salary savings available to help cover some of the variances.
•Forecast is stable based on current assumptions and planned rate increases.
Budget Report pg. # 28-31
Mid-Year Recommendations:
•Credit Card Merchant Fees ($185k)
•Mobility Services Position Allocation True-up ($102k)
16
Transit Fund
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
•Revenue appears low due to timing of Federal Funds
reimbursement; however, still on track with budget.
•Some variances at expenditure category level but overall
on track.
•Extended contract with transit operations and maintenance
agreement (Transdev) for additional two years.
•Beginning negotiations on Cal Poly service agreement
(expires June 2024).
•Six additional electric busses on the way!
Budget Report pg. # 32-34
Mid-Year Recommendations:
•Re-allocation of Mobility Services Positions will reduce expenditure budget by $150k.
•Additional funding for temporary staff ($48k)
17
Capital Projects
Completed projects in FY 2023-24 (Oct-Dec):
•Calle Joaquin Lift Station Replacement
•Whale Rock Dam Maintenance
•Community Development Block Grant Curb Ramps
•San Luis Drive Retaining Wall
Projects Under Construction or Near Complete
•WRRF Upgrade
•Cultural Arts District Parking Structure
•North Chorro Greenway
•2023 Arterial Streets Project
Storm Projects Underway
Johnson Avenue Creek Bank Stabilization – complete
San Luis Drive Creek Bank Repairs/Retaining Wall –complete
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
Budget Report pg. # 78-79
18
Major City Goal Progress
•Began construction on Cultural Arts District Parking Structure
•Developed a Council Memorandum on the current base level of economic support
for Arts and Cultural activities across the various departments in the City.
•DEI Strategic Plan to be presented on February 20, 2024
•Implemented new Community Service Officer Program
•Tree planting on Terrace Hill
•Bog Thistle connector opened and re-route of King Trail completed
•Transit Innovation Study (January 2024)
•Police Department Five-Year Strategic Plan
•PO issued for six new electric busses
Q2 Financials Overview Budget
Recommendations Enterprise Funds CIP/MCG Update
4 Major City Goal Tasks Completed
Progress and Updates:
Budget Report pg. # 80-88
19
Looking Forward
True -up budget for 2nd year of Financial Plan
Update fee revenue projections, Sales Tax Projections and any
expenditure forecast changes.
Adjust Capital Improvement Plan to align with resources and cost
escalation
Preparation
for
Supplemental
budget
5/7/2024
•FY 2023-24 Q3 Budget Report
•2024-25 Draft Budget “Preview”
6/4/2024
•FY 2024-25 Supplemental Budget Adoption (Resolution to Adopt Budget)
11/19/2024
•FY 2025-27 Financial Plan: Setting the Stage (Includes FY25 Q1 Budget Report)
20
Recommendation
1.Receive and file the Fiscal Year 2023-24 Mid Year Quarter Budget report; and
2.Adopt a draft resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, approving amendments to the Fiscal Year 2023-24 Budget
Appropriations” to:
a.Amend the 2023-24 revenue and expenditure budgets to reflect the changes
outlined in the 2023-24 Mid-Year Budget Report; and
b.Make a $2,437,211 additional discretionary payment to CalPERS; and
c.Continue to use the General Fund Reserve balance to pay for operating and
capital expenditures related to the January and March 2023 storm events
In accordance with Budget Policy G under Financial Plan Purpose and Organization, the Council will formally review the City’s fiscal
condition, and amend appropriations, if necessary, six months after the beginning of the year. Further, in accordance with Fiscal Policy Section
8, Policy 1, the City will give priority to applying unassigned fund balance to additional discretionary payments to CalPERS and Infrastructure
Investments. In accordance with Municipal Code Article VII. Section 804, at any meeting after the adoption of the budget, the Council may
amend or supplement the budget by motion adopted by a majority vote of the Council
21
South Broad Street Corridor
What improvements are
envisioned?
•Landscaped
medians
•Signalized
intersections
•Protected bike lanes
•Sidewalk widening
•Street Trees
•Streetlighting
•$15M+ to
Implement
22
ATP Projects in Progress
•>$30 million in ATP projects in progress
•Notable projects:
1.Higuera Complete Street
2.Foothill Complete Street
3.2023 & 2024 Paving Projects
4.South/King Signalized Crossing
5.California/Foothill Crossing Safety
Improvements
6.California/Taft Roundabout
7.RRST Extension (Orcutt Area)
8.Prado/Higuera Protected Intersection
9.LOVR Bikeways (Private Development)
ATP Tier 1 Network
Highlighted Links = Projects complete, in design or construction
23
Resources required to initiate work on South
Broad Street Corridor
•Transportation and CIP Engineering Divisions at full capacity
•Several ATP projects already delayed due to staffing limitations
(Foothill Complete Street, RRST Extension in Orcutt Area)
•Current projects cannot be deferred without risking millions in grant
funding
•Needs for planning/environmental/50% design ≈ $800,000
•Staffing: 2 Engineers ($400,000)
•Consultant Services: ($400,000)
24
1.Appropriate $800k from the Infrastructure Investment Fund to support staffing &
consultant needs for the Broad Street ATP with the Mid-Year Budget and approval of
this funding for carryover through FY 2023-24 and into FY 2024-25.
2.Direct staff to return with a project plan for Broad Street ATP Improvements with
Budget Supplement.
3.Direct staff to return with a funding request for consultant services to support Broad
Street ATP Implementation work efforts as part of the Budget Supplement.
4.Direct staff to return with necessary Capital Improvement Plan revisions to fund this
need and other infrastructure needs as well as inflationary trends as part of the Budget
Supplement.
5.Direct staff to align future Broad Street Paving with Broad Street ATP Implementation
work.