HomeMy WebLinkAboutItem 6b. 2025-27 Financial Plan - Setting the Stage and Q1 Budget Report Item 6b
Department: Finance
Cost Center: 2002
For Agenda of: 12/10/2024
Placement: Business
Estimated Time: 90 minutes
FROM: Emily Jackson, Finance Director
Prepared By: Riley Kuhn, Principal Budget Analyst
SUBJECT: 2025-27 FINANCIAL PLAN: SETTING THE STAGE & FIRST QUARTER
BUDGET REPORT
RECOMMENDATION
Receive and discuss the following documents in preparation for the 2025 -27 Goal Setting
and Financial Plan Development Process:
a) FY 2024-25 First Quarter Budget Report
b) Setting the Stage for the 2025-27 Financial Plan
c) General Plan Implementation Report
d) 2023-25 Major City Goals Status Update
POLICY CONTEXT
The City of San Luis Obispo utilizes a two -year financial planning process to create its
budgets. The fundamental purpose of the City’s budget process is to link, through public
engagement and strategic deliberation, the interest of the community to the available
financial resources to achieve the desired outcome. The process allows the City Council
to engage the community in identifying Major City Goals for the City while also providing
information and education regarding the City’s core services and programs, including the
day-to-day work and responsibilities carried out by City employees to support residents’
quality of life.
DISCUSSION
FY 2024-25 First Quarter Budget Report:
As of September 30, 2024 the City’s results as compared to budget are largely as
expected. The first quarter report (Attachment A) provides a limited preview of results
since many revenue streams and expenditures are reported several months in arrears.
Staffing is the most reliable indicator of expenditures since no reporting delay exists and
results are as expected through the first quarter. One risk area has emerged based on a
recent statewide forecast update released by our sales tax consu ltants who have advised
that macroeconomic conditions have shifted unfavorably since budget adoption.
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Item 6a
Setting the Stage for the 2025-27 Financial Plan:
The City of San Luis Obispo is a full-service city that provides public safety, public utilities,
and a broad variety of general government services. Like most municipalities, the City is
faced with balancing elevated and rising costs with limited resources while providing a
high level of service to its residents.
In setting the stage for the next Financial Plan (Attachment B), staff identified three focus
areas: The regulatory environment and state laws that impact how we operate,
macroeconomic conditions, and our community’s growth.
The regulatory environment becomes more complex each year as the State continues to
pass legislation with impacts to cities. This legislation has a pronounced impact on our
Community Development department, our revenues, and our staffing costs. Many
incremental changes are absorbable individually but in total lead to increas ed workloads
and a higher cost of doing business.
Recent years have been defined by strong tailwinds from economic stimulus in response
to the COVID pandemic and the inflationary period that followed. Conditions have shifted
and now present headwinds as increased sales tax revenues have plateaued and while
prices are increasing at more typical rates, they remain elevated.
Like many communities, ours has recently become much more accommodative of growth.
As we have welcomed new community members with new housing developments, we
have also made commitments to add new infrastructure and fund the costs of operation.
We also note that demand for a broad variety of City services has increased far more
quickly than the population.
General Plan Implementation
The City’s General Plan is the blueprint for growth in the City that addresses all City
programs and services. The Plan contains 396 programs contained within the Land Use,
Circulation, Housing, Noise, Conservation / Open Space, Safety, Parks & Recreation, and
Water & Wastewater elements. Attachment C. makes reference to the last General Plan
update provided last Spring for additional detail.
In addition to the General Plan, staff are also focused on implementing the Climate Action
Plan, Active Transportation Plan, Economic Development Strategic Plan, DEI Strategic
Plan, Homelessness Response Strategic Plan, Parks and Recreation Blueprint for th e
Future, Police Department Strategic Plan, Fire Department Strategic Plan, Vision Zero
Action Plan, Wastewater Collections Infrastructure Renewal Strategy, Water Treatment
Infrastructure Renewal Plan Strategy, and more.
Major City Goal Status Update
With adoption of the 2023-25 Financial Plan, Council set four Major City Goals: Economic
Resiliency, Cultural Vitality, and Fiscal Sustainability; Diversity, Equity, and Inclusion
(DEI); Housing and Homelessness; and Climate Action, Open Space & Sustainable
Transportation. Under each goal is a series of tasks identified to accomplish it. Of the 146
tasks, 93% are completed or on track, 6% have been delayed or have identified setbacks,
and just 1% or one task has been delayed without an identified solution. (Attachment D)
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Item 6a
Previous Council or Advisory Body Action
Council reviewed and approved the 2025-27 Financial Plan calendar on October 1, 2024.
Public Engagement
Public comment on this item can be provided to the City Council through written
correspondence prior to the meeting and through public testimony at the meeting.
CONCURRENCE
The City’s internal Financial Plan Steering Committee concurs with the recommend ations
included in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act 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: N/A Budget Year: 2024-25
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $0 $0 $0 $0
This report contains valuable information to keep the Council and Community informed
about the City’s financial standing and program efforts and should provide valuable
information to prepare for the next financial plan.
There is no fiscal impact associated with the recommendations contained in this report.
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Item 6a
ALTERNATIVES
Council could choose not to discuss the report. This action is not recommended as
Council’s feedback at each step of the Financial Plan process is invaluable to helping
staff craft informed recommendations for resource allocation .
ATTACHMENTS
A - FY 2024-25 First Quarter Budget Report
B - Setting the Stage for the 2025-27 Financial Plan
C - General Plan Implementation
D - 2023-25 Major City Goals Status Update
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1
First Quarter Financial Report
Fiscal Year 2024-25
Introduction
This financial report provides an overview of the City’s revenues and expenditures through the
first quarter of the fiscal year (July 1, 2024 – September 30, 2024). It also provides an update on
the status of the City’s Capital Improvement Plan (CIP) projects and progress on Major City Goal
tasks.
Throughout the document, reference will be made to the data available as of the time the report
was drafted. Revenues are often not available for up to two months after month-end and in some
cases, revenues are not received evenly throughout the year. Expenditures are often recorded in
advance for annual costs or for purchase orders opened at the beginning of the year. The net
impact is that actual results booked one quarter into the year should not always be expected to
equal one quarter of budgeted amounts. Commentary will be provided only when analysis
suggests that full-year results may differ significantly from budget.
Table of Contents
General Fund Summary………………………………………………………………… 2
Storm Update………………………………………………………………………. …… 5
Water Fund Summary…………………………………………………………………… 7
Sewer Fund Summary…………………………………………………………………... 9
Parking Fund Summary…………………………………………………………………. 11
Transit Fund Summary…………………………………………………………………... 12
Special Revenue Summaries…………………………………………………………… 13
CIP Update………………………………………………………………………….……. 17
Major City Goal Update…………………………………………………………………. 19
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2
General Fund Summary
As of the first quarter, revenue and expenditures for the General Fund are broadly in line with
expectations. The tables below detail year-to-date results as compared to budget and prior year
actuals. Commentary is provided where results are not in line with expectations.
Revenue:
Tax Revenue:
Local Revenue Measure G and Sales Tax: Year-to-date results include July only as the
California Department of Tax and Fee Administration operates with a two-month delay. Staff note
that recent statewide forecasts from our consultants have been revised downwards based on
macroeconomic conditions and this may indicate risk to budget attainment.
Property Tax: The City participates in the Teeter Plan, which means we are not exposed to
delinquent payments and can reasonably expect to collect 100% of budgeted amounts.
Business Tax: This tax is due at the beginning of the year and should be largely collected. Staff
note that collections are up more than 10% from prior year due to a combination of improved
compliance efforts and collection of past-due prior year receipts. Staff will issue citations for past
due business tax and expect collections to increase before year end.
Safety 172: This revenue stream is trending higher than budget due to timing of cash receipts.
Based on the latest estimates from our consultant, we should finish the full year slightly below
budget.
FY 2023-24 FY 2024-25
General Fund Actual Budget YTD Actuals % Received
Tax and Franchise Revenue 101,605,256$ 104,967,371$ 12,025,488$ 11%
Local Revenue Measure G 30,597,288 31,855,000 2,524,764 8%
Sales Tax (Bradley Burns) 22,285,972 23,962,099 1,872,619 8%
Property Tax 23,261,942 23,446,385 562,703 2%
Transient Occupancy Tax 10,995,912 10,586,256 1,778,374 17%
Utility User Tax 6,301,505 6,622,639 964,170 15%
Business Tax 2,942,425 3,317,338 3,335,315 101%
Cannabis Tax 1,031,124 1,100,000 192,241 17%
Franchise Fees 2,366,286 2,091,800 240,548 11%
Gas Tax 1,341,857 1,419,353 371,662 26%
Safety Prop 172 480,944 566,500 183,092 32%
Fees and Other Revenue 18,259,629 13,644,469 3,058,265 22%
Development Review 6,168,815 6,585,331 1,075,812 16%
Parks & Recreation 2,413,314 2,068,787 530,739 26%
Fire 1,762,336 1,577,836 369,419 23%
Police 1,029,274 611,917 103,036 17%
General Government 6,885,889 2,800,598 979,258 35%
Total 119,864,885$ 118,611,840$ 15,083,752$ 13%
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3
While other tax revenue categories show year to date results lower than 25%, we do not expect
significant variances for the full year.
Fee & Other Revenue:
Development Review Fees: This revenue stream finished 2% below budget last year and the
Community Development Department sees risk to budget attainment in the current year. Revenue
collected in the first quarter was down 39% year over year, part of a continuing downtrend in local
development activity. This is in line with trends in nationwide new housing starts which have been
in decline since the Federal Reserve increased interest rates in 2022.
General Government: This line includes earnings on cash and investment balances which have
benefited greatly from elevated interest rates. Staff expect cash interest payments to outperform
budget once again, although to a lesser degree due to recent and expected policy actions by the
Federal Reserve. Staff also caution that if interest rates do not decrease throughout the year as
expected, we may experience negative fair market value adjustments 1.
Though other fee categories show year to date results lower than 25%, we do not expect
significant variances for the full year.
Expenditures:
Staffing: Salaries and benefits are as expected at this point in the year. Salaries were 24%
expended, indicating salary savings to be expected at year-end. Benefits were 28% expended
due to the pre-payment of certain annual costs.
Unfunded Pension Liability: This annual cost is prepaid upfront. Savings are realized as a result
of this prepayment.
Contract Services: Actuals for this budget line include obligations on open purchase orders.
While 54% of budget has been obligated or expended, just 18% has been paid to vendors. Staff
do not expect a variance to budget at year-end.
Other Operating Expenditures: Similar to Contract Services, actuals for this line include
obligations on open purchase orders and just 17% of budget has been expended. We do not
expect a variance to budget at year-end.
1 Fair Market Value adjustments are non-cash adjustments to investment income that reflect changes in the
current market price of our bond holdings. Bond values are inversely correlated with interest rates, so if
interest rates do not fall as expected the adjustment will reduce revenue. If rates fall more quickly than
expected, the adjustment will increase revenue. Because the City generally holds investments until maturity,
we do not expect any cash impact from these changes in fair value.
FY 2023-24 FY 2024-25
General Fund Expenditures Actual Budget YTD Actuals % Expended
Staffing 55,754,263$ 61,611,177$ 15,265,541$ 25%
Unfunded Pension Liability 12,994,935 12,886,419 12,682,728 98%
Contract Services 10,721,258 13,243,317 7,091,018 54%
Other Operating Expenditures 7,671,938 8,601,412 3,149,731 37%
Total 87,142,394$ 96,342,323$ 38,189,018$ 40%
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4
While the year to date results for the General Fund as a whole are largely as expected, two areas
of risk to staffing budgets stand out:
Fire Department: Several vacant positions are driving higher than expected overtime
expenditures. Four firefighter positions are currently vacant, meaning at least one shift will be
filled at overtime rates daily. The department will utilize all means to reduce impacts to the budget
and expects that mutual aid and other reimbursements will provide budget capacity to cover
staffing costs for the remainder of the year.
Minimum Wage: Based on currently enacted laws, minimum wage will increase from $16.00 to
$16.50 effective January 1, 2025. The City employs a number of temporary or seasonal
employees at or near minimum wage, primarily in our Parks & Recreation Department. The
Human Resources Department will present Council with a recommendation to adjust
supplemental salary schedules to comply with the legislation and address compaction.
California voters narrowly rejected Proposition 32 to raise the minimum wage to $17.00
immediately and $18.00 effective January 1, 2025. A wage increase effective immediately would
have created significant operational impacts on the Human Resources and Finance Departments.
If the measure had passed, complying with the new rules and addressing compaction in other
positions near the minimum wage would cost the City roughly $250,000 annually.
FY 2023-24 FY 2024-25
Operating Expenditures by Department Actual Budget YTD Actuals % Expended
Admin/IT 10,767,778$ 12,196,246$ 4,539,312$ 37%
City Attorney 1,472,411 1,737,569 721,512 42%
Community Development 7,157,271 9,772,915 3,941,200 40%
CSG Admin 829,900 669,322 241,130 36%
Finance 2,275,677 2,661,555 1,007,851 38%
Fire 15,960,639 16,983,344 7,562,775 45%
Human Resources 2,177,463 2,096,614 808,961 39%
Non-Dept/Support Services 403,850 1,226,143 108,218 9%
Parks & Recreation 5,414,249 6,003,370 1,973,922 33%
Police 23,233,179 23,845,986 10,081,924 42%
Public Works 17,038,925 18,736,984 7,040,526 38%
Utilities 411,052 412,275 161,687 39%
Total 87,142,394$ 96,342,323$ 38,189,018$ 40%
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5
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 2023-25 Financial Plan,
the City Council also allocated $2.75 million in the CIP to fund projects to repair storm damages
and mitigate against future damage. An additional $2.1 million was allocated to storm damage
repair with adoption of the FY 2024-25 Supplemental Budget. The Federal and State declarations
enable the City to seek reimbursement for certain storm related costs. The maximum
reimbursement for eligible costs is 93.75% (75% from the Federal Emergency Management
Agency (FEMA) and 18.75% from the California Office of Emergency Services (CalOES)),
meaning that the City will pay a minimum of 6.25% for certain storm related costs.
The FEMA reimbursement process continues to move 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. As
reported in the FY 2024-25 Year-End Budget Report, FEMA is currently in a holding pattern for
new obligations as the federal Disaster Relief Fund, which funds public assistance to impacted
agencies, is nearly expended due to a record number of costly disasters. As of the writing of this
report, Congress has not taken action to replenish the fund, but this lack of funding is not expected
to put the City’s projects in danger. As previously reported, the current lack of Federal funding is
causing delays in projects being obligated for funding, which is expected to impact the timing of
reimbursement. In the last several weeks, the City’s FEMA liaisons have indicated a general slow
down in project review, due to intense focus by FEMA on the recent hurricanes in the Gulf Coast
region. Staff continues to closely monitor actions at the Federal level, as the 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 $13 million on storm response to date, including debris
removal, emergency protective measures, and projects to make permanent repairs to damaged
facilities. As noted in the prior quarter, total expenditures have not changed significantly from the
prior quarter because many projects are in the design phase. Storm related cost estimates
continue to shift as projects are scoped, designed and completed. Currently, the estimated total
cost to repair all storm related damage is $48.4 million, consistent with what was reported in the
FY 2024-25 Year-End Budget Report. Up to this point, in order to expedite project delivery to
mitigate storm damage, staff has used a streamlined procurement process, 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. As previously
noted, all storm-related expenditures have been submitted to FEMA for reimbursement and are
in various stages of FEMA’s review and evaluation process. As
Based upon staff delivery capacity, FEMA reimbursement timeframes, and the upcoming 2025-
27 Financial Plan process, staff continues to work on the highest priority storm damage projects
in order to advance them for funding consideration with the 2025-27 Financial Plan and will
continue the process to obtain FEMA reimbursement during the delivery process. The projects
that are shown in Table 6 below represent the highest priority projects for delivery at this time
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6
based upon the need to mitigate previously completed projects, protect existing infrastructure,
and/or identify projects that must be completed.
The two tables below provide an overview of the current status of storm projects. The first table
details all storm projects that staff believes should advance, including their respective current
phases and the percentage of work completed to date. The second table outlines work that is not
deemed urgent at this time and will be assessed as part of the 2025-2027 Financial Plan to
determine priority and appropriate funding sources.
Row # Projects by Phase - Storm Funding and Staff Resources Advancing Project Development Percentage Complete
Project Initiation 0%
1 Mitigation Planting 0%
Replant and vegetate emergency project areas
Design 24%
2 Prefumo Creek Grade Structure 25%
3 Phase I - Remove damaged grade control structure and install RSP roughened ramp. 25%
4 Phase II - Install new sewer siphon. 25%
5 Prefumo through Golf Course 50%
6 Phase 1 - Install City Owned Ped bridge 50%
7 SLO Creek at Elks Lodge 18%
8 Phase 1 - Install RSP on East Side (Elks Side) - armor embankment due to Caltrans revetment 25%
9 Phase 2 - Install creek bank revetment on Elks Lodge side downstream of Elks Lodge 25%
10 Phase 3 - Install soil nail wall on Hwy 101 side of SL Creek near Elks Lodge 5%
11 SLO Creek at Mission Plaza 10%
12 Remove and install structural sidewalk 10%
Grand Total 21%
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7
Water Fund Summary
The Water Fund’s year-to-date results are generally in line with expectations. The Water Fund’s
year-to-date results align closely with projections, showing expected trends across revenue and
expenditure categories.
Revenue:
Revenues are only 13% received as of report drafting due to only one month of Service Charges
and Base Fees having been collected and recorded. Staff do not expect a significant variance in
budget for the full year.
Investment and Property Revenue: This line includes earnings on cash and investment
balances. The fund is expected to benefit from the current interest rate environment and meet or
exceed its revenue budget. The higher interest earnings may help offset other revenue shortfalls,
should they occur, and strengthen the Water Fund’s financial position. Staff anticipates that cash
interest payments will again exceed the budget, though to a lesser extent than previous years
due to recent and anticipated Federal Reserve Policy actions.
Other Revenue: The Other Revenue line item is primarily funded through revenues in the Other
City Licenses and Permits (recycled water construction water permits), Miscellaneous Penalties
(customer late fees), Sales of Surplus Property, Development Review Fees, and Utilities Setup
Fees. This line reflects an over-collection partially due to the timing of Journal Entries allocating
a portion of Setup Fees and Miscellaneous Penalties (customer late fees) to the Sewer Fund, as
well as unbudgeted revenue from Sales of Surplus Property and Construction Water Permits.
Service Charges and Base Fees: Only one month of Service Charges and Base Fees have
been collected and recorded at the time of reporting. Staff do not anticipate a significant variance
from the annual budget.
State Grants: State grant allocations, attributable to a Prop 1B Grant, are projected to align with
expected funding levels and are anticipated to be received on schedule within the fiscal year’s
budget framework.
FY 2023-24 FY 2024-25
Water Revenue Actual Budget YTD Actuals % Received
Cal Poly Capacity & Resilience 233,025$ 263,433$ 271,026$ 103%
Investment and Property Revenue 1,759,115 50,000 - 0%
Other Revenue 525,148 139,000 174,676 126%
Service Charges and Base Fees 26,088,324 28,102,022 3,204,408 11%
State Grants 613,814 - 22,946
Total 29,219,426$ 28,554,454$ 3,673,056$ 13%
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Expenditures:
Staffing: At 21% expended, vacancies are driving significant budget savings. Current savings
are likely to persist if the positions remain vacant, reducing pressure on staffing budgets for the
remainder of the year.
Unfunded Pension Liability: This annual cost is prepaid upfront. Savings are realized as a result
of this prepayment.
Contract Services: Actuals for this budget line include obligations on open purchase orders,
which are often opened at the beginning of the fiscal year for larger year-long contracts. While
46% of budget has been obligated or expended, just 13% has been paid to vendors. Staff do not
expect a variance to budget at year-end. This discrepancy is typical due to the timing of service
delivery and invoicing, as well as the completion of work on open purchase orders.
Other Operating Expenditures: Similar to Contract Services, actuals for this line include
obligations on open purchase orders and this line also includes annual prepayments for
Nacimiento, Salinas, and Whale Rock water sources of supply. Although 67% of the budget has
been obligated or spent, the fund has over $2 million in encumbrances.
FY 2023-24 FY 2024-25
Water Expenditures Actual Budget YTD Actuals % Expended
Staffing 4,595,744$ 5,167,733$ 1,095,990$ 21%
Unfunded Pension Liability 833,466 789,926 779,802 99%
Contract Services 810,950 1,212,318 553,952 46%
Other Operating Expenditures 11,880,657 15,527,544 10,480,909 67%
Total 18,120,818$ 22,697,521$ 12,910,653$ 57%
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Sewer Fund Summary
The Sewer Fund’s year-to-date results are generally in line with expectations.
Revenue:
Investment and Property Revenue: This line includes earnings on cash and investment
balances. The fund is expected to benefit from the current interest rate environment and meet or
exceed its revenue budget. The higher interest earnings may help offset other revenue shortfalls,
should they occur, and strengthen the Sewer Fund’s financial position. Staff anticipates that cash
interest payments will again exceed the budget, though to a lesser extent than previous years
due to recent and anticipated Federal Reserve Policy actions.
State Grants: The State Grant allocations are projected to align with anticipated funding levels
and are expected to be received as scheduled within the fiscal year’s budget framework. 100%
of the revenue collected is attributable to the CalOES grant.
Other Revenue: Other Revenue during Q1 is primarily attributed to Industrial User Permits,
where revenues are received as user permits expire, and Prop 1B IRWM Grant Funding for the
WRRF project. A small amount was also made up by Administrative Citations, Sales of Surplus
Property, Development Review Fees, and Sewer Wye Abandonment and Installations.
Long Term Debt Proceeds: These borrowings are used to fund construction of the Water
Resource Recovery Facility (WRRF) and were originally budgeted in FY 2023-24. The timing of
borrowings is based on construction progress and may not align with projections.
Service Charges and Base Fees: Like the Water Fund, only one month of Service Charges and
Base Fees have been collected and recorded at the time of reporting. Staff do not expect a
significant variance to budget for the full year.
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Expenditures:
Staffing: At 22% expended, vacancies are driving the budget savings. The majority of current
vacancies are expected to be filled by the end of calendar year 2024.
Unfunded Pension Liability: This annual cost is prepaid upfront. Savings are realized as a result
of this prepayment.
Contract Services: Actuals for this budget line include obligations on open purchase orders.
While 72% of budget has been obligated or expended, just 18% has been paid to vendors. Staff
do not expect a variance to budget at year-end.
Other Operating Expenditures: Similar to Contract Services, actuals for this line include
obligations on open purchase orders. 14% of budget has been paid to vendors. This approach
safeguards budget stability and ensures that key expenditures can be met as obligations are
fulfilled.
FY 2023-24 FY 2024-25
Sewer Expenditures Actual Budget YTD Actuals % Expended
Staffing 4,616,421$ 5,127,912$ 1,125,870$ 22%
Unfunded Pension Liability 851,453 782,976 772,941 99%
Contract Services 1,256,919 1,303,478 937,167 72%
Other Operating Expenditures 2,647,401 2,874,769 1,020,248 35%
Total 9,372,194$ 10,089,135$ 3,856,226$ 38%
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Parking Fund Summary
The Parking Fund’s year-to-date results are generally in line with expectations.
Revenue:
Lower parking rates were in full effect for the quarter and these results present an opportunity to
test the fiscal impact of the new rate structure. While 22% of budget has been collected through
the first quarter, there is no indication that parking activity has decreased. Staff is closely
monitoring parking revenue and will provide a comprehensive update after two quarters of results.
Expenditures:
Unfunded Pension Liability: This annual cost is prepaid upfront. Savings are realized as a result
of this prepayment.
Contract Services: Actuals for this budget line include obligations on open purchase orders.
While 63% of budget has been obligated or expended, just 14% has been paid to vendors. Staff
do not expect a variance to budget at year-end.
FY 2023-24 FY 2024-25
Parking Revenue Actual Budget YTD Actuals % Received
Long Term Parking 702,797 695,300 137,108 20%
Other Revenue 3,733,272 664,884 304,679 46%
Parking Fines 1,190,030 1,288,000 261,581 20%
Parking Meters 5,927,488 5,805,900 1,189,441 20%
Parking Structures 1,757,776 1,843,700 414,473 22%
Total 13,311,364$ 10,297,784$ 2,307,281$ 22%
FY 2023-24 FY 2024-25
Parking Expenditures Actual Budget YTD Actuals % Expended
Staffing 1,752,249$ 1,866,748$ 447,853$ 24%
Unfunded Pension Liability 238,826 244,373 241,241 99%
Contract Services 862,591 782,601 490,487 63%
Other Operating Expenditures 967,528 965,304 225,224 23%
Total 3,821,194$ 3,859,026$ 1,404,804$ 36%
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Transit Fund Summary
The Transit Fund’s year-to-date results are generally in line with expectations.
Revenue:
Federal and State Grants: This revenue is dependent on timing of capital expenditures and
drawdowns needed to fund operations. As a result, variances to budget are to be expected and
will be offset by expenditure variances, resulting in no impact to fund balance.
Expenditures
Unfunded Pension Liability: This annual cost is prepaid upfront. Savings are realized as a result
of this prepayment.
Contract Services: Actuals for this budget line include obligations on open purchase orders.
While 92% of budget has been obligated or expended, just 13% has been paid to vendors. Staff
do not expect a variance to budget at year-end.
Other Operating Expenditures: Similar to Contract Services, actuals for this line include
obligations on open purchase orders. 13% of budget has been paid to vendors.
FY 2023-24 FY 2024-25
Transit Revenue Actual Budget YTD Actuals % Received
Federal 3,486,773$ 12,469,861$ 482,677$ 4%
Local (Bus Fare) 1,000,790 976,000 243,837 25%
Other / Interest Revenue 379,651 - -
State 1,501,111 3,613,325 644,107 18%
Total 6,368,325$ 17,059,186$ 1,370,621$ 8%
FY 2023-24 FY 2024-25
Transit Expenditures Actual Budget YTD Actuals % Expended
Staffing 332,611$ 348,165$ 67,870$ 19%
Unfunded Pension Liability 57,283 45,725 45,139 99%
Contract Services 3,592,192 4,630,217 4,279,735 92%
Other Operating Expenditures 431,255 424,715 376,523 89%
Total 4,413,341$ 5,448,821$ 4,769,268$ 88%
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Special Revenue Fund Summaries
Tourism Business Improvement District
The Tourism Business Improvement District (TBID) assessment is set at 2% of the lodging
industry’s gross receipts. The program annually aligns its operating budget with its anticipated
revenues.
Revenue:
The TBID receives revenue in the form of a transfer from the general fund of 20% of Transient
Occupancy Tax (TOT) collections. Staff expect TOT revenue to finish on budget or better.
Expenditures:
The TBID procures many of its services in advance, leading to a high percent of budget
expended early in the year. The fund is expected to finish on budget for the full year.
Boysen Ranch Conservation Fund
Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill
Boulevard, and O’Connor Way. The City holds a series of conservation easements that protect
approximately 25 acres of the Ranch to mitigate impacts to wetlands and waters caused by the
nearby commercial development projects on Los Osos Valley Road. As part of the original
easement agreement, Boysen Ranch’s owners provided the City with an endowment to fund
required monitoring activities.
Revenue:
FY 2023-24 FY 2024-25
TBID Revenue Actual Budget YTD Actuals % Received
Tourism Assessment 2,210,661$ 2,117,251$ 341,692$ 16%
Other / Interest Revenue 56,643 - -
Total 2,267,304$ 2,117,251$ 341,692$ 16%
FY 2023-24 FY 2024-25
TBID Expenditures Actual Budget YTD Actuals % Expended
Staffing 216,518$ 237,466$ 49,682$ 21%
Unfunded Pension Liability 43,573 32,234 31,821 99%
Contract Services 1,869,690 1,863,737 1,568,618 84%
Other Operating Expenditures 20,130 34,100 1,689 5%
Total 2,149,911$ 2,167,537$ 1,651,810$ 76%
FY 2023-24 FY 2024-25
Boysen Ranch Revenue Actual Budget YTD Actuals % Received
Investment Income 18,353$ 2,000$ -$ 0%
Total 18,353$ 2,000$ -$ 0%
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The Boysen Ranch Conservation Fund is an endowment fund and its budgeted revenue is
provided by investment income. The fund is expected to benefit from the current interest rate
environment and meet or exceed its revenue budget.
Expenditures
The fund budgets for authorized conservation activities and significant variances are not expected
at year-end.
Insurance Fund
The Insurance Fund serves to pay the City’s annual premiums for liability, workers’ compensation,
special events, volunteer, and property insurance needed to protect the City and to manage
fluctuations in claims-related expenses. The budget for the insurance fund has been
supplemented over time with expenditures from the Office of the City Attorney and the Human
Resources Department, which continue to incur costs which could fall under the intended use of
the Insurance Fund. Staff intend to revisit where these costs are incurred in future planning cycles.
Revenue:
Insurance Fund revenues are transfers in from the General Fund and will finish on budget.
Expenditures:
The Insurance Fund budgets for insurance premiums and claims and is intended to maintain
adequate reserves for future claims. While recent actions to reduce premiums for Workers’
Compensation insurance have delivered savings, additional contributions from the General Fund
may be necessary to build and maintain adequate reserves according to City policy and actuarial
estimates. . The City’s Fund Balance and Reserve Policy establishes that the Insurance Fund will
maintain a minimum reserve (undesignated fund balance) to cover 150% of the average claim
costs for the past five years, which totals $993,498 for the five-year period FY20 to FY24. The
policy also states that actuarial information will be taken into consideration. Based on the most
recent actuarial study dated November 18, 2024, the City should maintain a reserve of $3,392,000
for liability claims and $1,578,000 for workers’ compensation claims, totaling $4,970,000, to
FY 2023-24 FY 2024-25
Boysen Ranch Expenditures Actual Budget YTD Actuals % Expended
Contract Services 9,135 10,136 2,636 26%
Total 9,135$ 10,136$ 2,636$ 26%
FY 2023-24 FY 2024-25
Insurance Fund Revenue Actual Budget YTD Actuals % Received
Transfers In 6,175,000$ 6,000,000$ 3,000,000$ 50%
Total 6,175,000$ 6,000,000$ 3,000,000$ 50%
FY 2023-24 FY 2024-25
Insurance Fund Expenditures Actual Budget YTD Actuals % Expended
Contract Services 1,605,230$ 2,610,281$ 785,744$ 30%
Other Operating Expenditures 3,149,326 3,114,838 2,211,679 71%
Total 4,754,556$ 5,725,119$ 2,997,423$ 52%
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15
achieve a 75% confidence level. The insurance fund reserve is anticipated to be $2,891,767 at
the end of FY25.
Public Safety Equipment Replacement Fund
The Public Safety Equipment Fund (PSEF) was created with the 2019-21 Financial Plan to help
budget and forecast the replacement of Public Safety equipment that has expired or become
damaged. The Fund had received an original seed amount with the 2019-20 budget and, going
forward, an annual allocation is made from the Local Revenue Measure.
Revenue:
The fund receives revenue in the form of transfers in from the General Fund and will finish on
budget.
Expenditures:
The fund budgets for replacement of public safety equipment currently in service and is expected
to finish the year on budget.
San Luis Ranch CFD
A Mello-Roos Community Facilities District (CFD) was established and approved by City Council
on April 16, 2019 (Ordinance No 1661) pursuant to section 5.02 of the San Luis Ranch
Development Agreement. The boundaries of the CFD are identical to the San Luis Ranch
Specific Plan and includes 131.4 acres approved for up to 580 dwelling units and commercial
development, a 200-room hotel, 100,000 square feet of office space, 150,000 square feet of
retail space, 7.8 acres of parks/ open space, and 52.3 acres of farmed agriculture land. The
purpose of the CFD is to fund major road improvements, potable and non-potable water system
improvements, drainage system improvements, wastewater system improvements, solid waste
improvements, park and paseo improvements, open space improvements, and utilities.
FY 2023-24 FY 2024-25
Public Safety Fund Revenue Actual Budget YTD Actuals % Received
Transfers In 171,322$ 167,334$ 83,667$ 50%
Total 171,322$ 167,334$ 83,667$ 50%
FY 2023-24 FY 2024-25
Public Safety Fund Expenditures Actual Budget YTD Actuals % Expended
Other Operating Expenditures 601,116 404,020 168,546 42%
Total 601,116$ 404,020$ 168,546$ 42%
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Revenue:
The fund collects property tax from residents under the Teeter Plan with the County and is
expected to finish the year on budget or better.
Expenditures:
The fund budgets for authorized expenditures, largely debt service, and is expected to finish the
year on budget.
Avila Ranch CFD
A Mello-Roos Community Facilities District was established and approved by City Council on
October 24, 2017 (Resolution No 10844) pursuant to section 5.02.1 of the Avila Ranch
Development Agreement. The CFD boundaries are identical to that of the Avila Ranch
Development project and located at the northeast corner of Buckley Road and Vachell Lane. The
Avila Ranch Project will include up to 720 dwelling units, 15,000 square feet of office and retail,
18 acres of parks, 53 acres of open space, riparian corridors and farmed agricultural land. The
CFD was formed with purpose of funding services as well as facilities of the CFD. Services to be
funded can include the maintenance and lighting of parks, parkways, streets, roads, and open
space; flood and storm protection services; police & fire protection services; maintenance and
operation of real property. Facilities to be funded can include park, recreation, parkway, and
open space facilities; construction and undergrounding of utilities (water, natural gas, telephon e
lines, electric, cable television); for the acquisition, improvement, or rehabilitation of real property.
Revenue:
The fund collects property tax from residents under the Teeter Plan with the County and is
expected to finish the year on budget or better.
FY 2023-24 FY 2024-25
San Luis Ranch CFD Revenue Actual Budget YTD Actuals % Received
Property Tax 1,274,999$ 1,000,250$ 10,879$ 1%
Interest on Investment 592,271 - -
Total 1,867,271$ 1,000,250$ 10,879$ 1%
FY 2023-24 FY 2024-25
San Luis Ranch CFD Expenditures Actual Budget YTD Actuals % Expended
Contract Services 9,145$ 22,043$ 13,081$ 59%
Debt Service 911,650 949,450 539,850 57%
Staffing - 26,530 - 0%
Total 920,795$ 998,023$ 552,931$ 55%
FY 2023-24 FY 2024-25
Avila Ranch CFD Revenue Actual Budget YTD Actuals % Received
Services Special Tax 232,761$ 477,025$ 0$ 0%
Facilities Special Tax 23,738 46,623 0 0%
Total 256,499$ 523,648$ 0$ 0%
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Expenditures:
The fund budgets for authorized services expenditures including maintenance, utilities, and
supplies, and is expected to finish the year on budget. Prior year actuals were lower than
budget due to the timing of services performed. All unexpended funds fall to fund balance and
are available for expenditure in future years.
FY 2023-24 FY 2024-25
Avila Ranch CFD Expenditures Actual Budget YTD Actuals % Expended
Authorized Services 58,758 363,416 129,054 36%
Total 58,758$ 363,416$ 129,054$ 36%
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CIP Update
In the first quarter, CIP Engineering Project Managers made progress across various project
phases. Four projects reached completion, including the revitalization and opening of Cheng Park
and the completion of the parking structure maintenance projects on Palm Street, which
encompassed work on two structures. In addition, 14 projects are actively under construction, and
7 projects are under contract and are anticipated to enter the construction phase soon. The City
has 3 projects which are currently in the advertising phase, seeking competitive bids.
In addition, staff has made significant efforts on several legacy and major projects, which are
currently in the design phase or are expected to go to bid shortly. These projects represent critical
investments in the City's future infrastructure and are detailed in a separate table below.
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19
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20
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21
Major City Goals Update
One Major City Goal task had an original completion date in the current quarter:
Climate Action, Open Space, & Sustainable Transportation | Preserve and Enhance
Convenient and Equitable Alternative and Sustainable Transportation Options | Strategic
Approach 4.3c
Responsible Department: Public Works
Original Completion Date: FY25 Q1 | Updated Completion Date: FY25 Q4
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.
Status Update: This task will be delayed due to staffing vacancies in the Transportation Division.
There is currently one vacant full-time Transportation Planner-Engineer position and one vacant
contract Transportation Planner-Engineer position that have yet to be filled. Applicant interviews
for the vacant full-time position are scheduled for mid-November, 2024. The contract position was
previously advertised for recruitment during summer of 2024, but no applications were received
from candidates who met minimum qualifications and/or with relevant experience. Staff will
discuss interest in contract position with unselected candidates from the full-time recruitment. It
should be noted that there have been ongoing challenges with attracting qualified applicants with
any relevant work experience with recent recruitments for open Transportation Planner-Engineer
positions. The current timeline for Foothill Complete Street is as follows:
Draft Corridor Plan Released for Public Review – Complete
Public Outreach & Input on Draft Corridor Plan – June 2024 through March 2025
Final Corridor Plan Release – June 2025
PS&E for Phase 1 Improvements – FY2025-26 (if funded)
Construction Initiation for Phase 1 Improvements – FY2026-27 (if funded)
One Major City Goal task had an original completion date in FY24 Q4 and an updated completion
date in the most recent quarter:
Housing & Homelessness | Housing Element Implementation | Strategic Approach 3.1f
Responsible Department: CDD; City Attorney
Original Completion Date: FY 24 Q4 | Status: Complete
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.
Status Update: This task was completed on September 17, 2024 with the adoption of the an
ordinance to update the City's Development Impact Fee Deferral Program for Eligible Affordable
Housing Projects. Previous implementation components of this task included leveraging
affordable housing revenues from the State’s Homekey and Pro-Housing Incentive programs,
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22
developing the Avila Ranch Downpayment Assistance Program Guidelines, and updating Below
Market Rate Housing Purchase Guidelines in October 2023.
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Setting the Stage
2025-27 Financial Plan
The Strategic Scan is meant to inform the financial planning process by providing an overview of
important statistical information that provides trends and patterns pertaining to social, economic,
and environmental factors. This will help set the stage for an overview of the City’s services and
how the budget is allocated.
In making resource allocation decisions, the City must balance numerous considerations to
provide the highest possible level of service to our community. These considerations are
visualized below:
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At this time, there are three major factors influencing development of the 2025-27 Financial Plan.
These include: 1. Changes to state laws and mandates that impact delivery of services; 2.
macroeconomic conditions that influence our revenues and continue to drive up the cost of doing
business; and 3. the cost to serve the community as it grows.
Regulatory Environment: State legislation and mandates
The State of California signs into law hundreds of bills each year, many of which have a direct
impact on cities. Staff presents a summary of these bills in the annual State Legislative Briefing.
This report will focus on those legislative items with the greatest impact on City budgets.
While this report focuses on the budgetary implications of implementation, these investments
often provide meaningful community benefit and in the case of ballot initiatives are enacted based
on approval from a majority of voters.
The costs to comply with new legislation are not always readily apparent, but all new requirements
impose some cost. Even simple changes require time to implement, taking scarce resources away
from other priorities. Significant changes may necessitate adding or repurposing existing
resources.
Planning and Building related legislative changes
The State of California continues to pass legislation that directly impacts planning and project
permitting, especially housing projects. While the legislation is meant to streamline the approval
process for projects and remove barriers to housing production, a number of regulations require
a significant amount of up-front work from Community Development to ensure compliance. This
work includes ongoing updates to processes and procedures, creation of new programs, and
amendments to the municipal code. In some cases, the City will be required to address the
mandated changes through technological updates that include Community Development, Finance
and IT staff as well as consultants. For example, some of the recent legislation that was passed
will require:
Strict adherence to review timelines for housing projects, with potential legal and fiscal
consequences for non-adherence, this could result in the need for additional reviewers, or
updated practices, if the case levels remain as high as they have been in the past (AB
1893).
Increased transparency and requirements surrounding fees. This will require the City to
develop new tools for the public to estimate fees, and provide additional information online
about the fee program, and change our fee processes. In addition, improvements are
necessary to the fee program and technology used to facilitate the fee program in order
to ensure compliance with these new state laws (SB 937, AB 2663, AB 3012 and AB 1820).
Changes to ADU law, SB 9 laws regarding lot splits and duplexes, as well as SB 628,
which will allow subdivision of single-family lots to accommodate up to 10 units. In addition
to the increased penalties for non-compliance with review timelines, the state has made
changes to ADU law, SB 9, and SB 628 regulations that will likely require updates to the
city codes and standards as well as additional education and process improvements to
facilitate projects. (SB 1211, AB 2533, SB 450)
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Development of a pre-approved ADU process, which will require staff to develop and
implement this new program (AB 1332).
Depending on the impact of these changes, it may be necessary to consider additional or
supplemental staff to facilitate these changes and/or review projects within required timelines set
by the State.
It can be challenging to plan ahead for the fiscal and time impacts that implementing these
changes can present, as the legislation is usually unknown at the time of budget development,
and new laws are signed every year. For this reason, it is important to ensure that some staff
capacity is reserved to address the needs that arise from the annual changes in state law. For the
purposes of this discussion, staff anticipates that the new planning and development related laws
will take a significant amount of staff time to address in the beginning of the budget cycle, with the
most significant impacts to Planning, Building and Safety, IT, and the City Attorney’s Office. Staff
also recommends retaining staff capacity throughout the budget cycle to ensure the City is able
to address ongoing changes required by state law and changes in interpretation of state law.
In addition, the Building and Safety Division will facilitate the adoption of the 2025 Building Code,
which will primarily begin in July 2025 when the state publishes the updated standards. This
update requires a significant amount of effort from the Building and Safety Division, with
assistance from the Fire Department and City Attorney’s Office. The time involved in this effort
should be considered when determining staff capacity for work program items.
Limitations on Property Tax Increases – Propositions 13 & 19
Proposition 13 was approved by voters in 1978 and, among other things, capped the property tax
rate at 1% of assessed value and limited increases in assessed value to 2% per year, regardless
of market value appreciation. Prop 13 allows reassessments only when properties are sold or
otherwise change ownership. The official name of the ballot initiative was the “People’s Initiative
to Limit Property Taxation” and part of the intent was to prevent displacement of retired
homeowners living on fixed incomes.
According to the All-Transactions House Price Index for California published by the Federal
Reserve, California housing prices have increased at a compound annual growth rate of 8.1%
since 1978 and are now 13 times higher than when Prop 13 was passed.
The City of San Luis Obispo has historically seen growth in property tax revenues well in excess
of the 2% limitation. This has generally been attributed to changes in ownership of properties that
have benefited from years or decades of below market assessment increases. When homes are
sold in San Luis Obispo, new homeowners on average pay substantially higher property taxes
based on the new assessed value at the transaction price.
Proposition 19, also known as “The Home Protection for Seniors, Severely Disabled, Families,
and Victims of Wildfire or Natural Disasters Act,” was approved by California voters on November
3, 2020, and places additional limitations on reassessments. Specifically, Prop 19 created new
reassessment exclusions for inherited properties and allows residents aged 55+, the severely
disabled, and victims of natural disasters to transfer their lower assessed values to new properties
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when they move. The intent of this bill was to prevent the displacement of those inheriting valuable
properties and to allow greater mobility within the state.
While precise data on the demographics of home buyers is not readily available, based on the
2023 County Assessor’s report, the county as a whole realized a net assessed value loss of
$106.8 million as a result of Prop 19 value transfers. The 2024 countywide loss was $74.7 million,
which, based on a reasonable allocation, would result in a roughly $13,000 revenue impact to the
City. Going forward, the assessed values of properties within the City and County are expected
to be impacted by Prop 19, though overall decreases to assessed value and property tax receipts
are not expected due to continued growth of assessed value in line with Prop 13.
The Taxpayer Protection and Government Accountability Act
This California Business Roundtable (CBRT) sponsored initiative qualified for the November 5,
2024 ballot, but after strong opposition from Cal Cities and a broad coalition of local governments
and advocates including the Governor, it was removed from the ballot by the California Supreme
Court.
The Act would have severely limited local control and specifically would have placed significant
limitations on Cities’ ability to assess fees for services provided. Staff caution that while the Act
was struck down from the most recent ballot, the CBRT may pursue other avenues to pass
legislation with the same goal and the same detrimental impact to cities.
Diablo Canyon Power Plant Relicensing
The Diablo Canyon Power Plant (DCPP) is the last active nuclear power plant in California and
provides roughly 9% of the state’s energy. The plant was originally planned for closure beginning
in 2024. Based on increasing demand for clean energy and the closure of other plants, the
California Public Utilities Commission (CPUC) granted a five-year license extension that allows
PG&E to operate the Unit 1 reactor until October 31, 2029, and the Unit 2 reactor until October
31, 2030. During this time, the Nuclear Regulatory Commission (NRC) will consider a 20-year
license extension for DCPP. If the NRC approves the license renewal, Diablo Canyon could
continue operating until the 2040s.
The closure or continued operation of the plant would have significant economic implications for
both San Luis Obispo County and the state as a whole. If the plant closes, the local economy
would face job losses (1,500+ high-paying positions), reduced tax revenues, and broader
negative effects that would ripple through the regional economy. However, if the plant remains
open, the community also faces risks and liabilities, including the potential for costly accidents or
safety concerns, ongoing challenges with long-term waste storage, and limited future uses for the
site. Additionally, under California Senate Bill 1090, PG&E's unitary tax for DCPP will gradually
decrease to zero by August 2025. For context, in 2023, the County received $14 million in property
tax revenue from the plant. Without a new property tax agreement after 2025, the County could
face budget shortfalls that impact its ability to fund vital services for the community. The City will
need to stay engaged and work closely with other local governments and PG&E to help mitigate
the impacts.
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State Debt Capacity:
In the last 12 months voters approved $26.4 billion in new state bonds:
Prop 1 from March 5, 2024 ballot added $6.4B to be repaid over 30 years for affordable
housing and behavioral health treatment facilities
Prop 2 from November 5, 2024 ballot added $10B to be repaid over 35 years to repair and
modernize K-12 and community college facilities
Prop 4 from November 5, 2024 ballot added $10B to be repaid over 40 years for safe
drinking water, wildfire prevention, and protection from climate change
According to the State Legislative Analyst’s Office, the state had $70.9B outstanding and another
$23.6B authorized but unissued general obligation bonds as of January 1, 2024. The newly
authorized debt is equal to 37% of the current outstanding amount, a considerable increase for a
single year.
https://lao.ca.gov/LAOEconTax/Article/Detail/798
While there is no direct impact to the City from these bond issuances, staff note two possible
takeaways. First, California voters are certainly willing to invest in improving their communities
and address the needs of the day with debt financing. A less optimistic conclusion is that the state
will have limited capacity to address the challenges of tomorrow by the same means.
Minimum Wage:
For much of the 20th century, California’s minimum wage increases did not keep up with inflation.
In 2016, Governor Jerry Brown signed a bill to correct that with phased increases from $10.00 per
hour up to $15.00 by 2022. The minimum wage has since been further increased to $16.00 and
will increase again to $16.50 on January 1, 2025.
The chart below compares increases in California’s minimum wage (in red) and the Consumer
Price Index (in blue) going back to 1968, the earliest date that the Federal Reserve publishes
California minimum wage data. By 2023, minimum wage finally caught up to cumulative cost of
living increases.
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https://fred.stlouisfed.org/graph/?g=1zFQt
While this change was necessary to address historical inequities, the increase over the last ten
years has been dramatic. Since 2014, the minimum wage has increased by 78% while the
consumer price index increased 32%.
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https://fred.stlouisfed.org/graph/?g=1zG2Z
On November 5, 2024, voters narrowly rejected Proposition 32, a ballot measure to increase the
minimum wage to $17.00 immediately and $18.00 on January 1, 2025. Many supplemental and
intern positions at the City are paid the minimum wage or at an hourly rate indexed to the
minimum. The annualized cost to increase wages for these employees without creating
compaction issues was estimated at roughly $250,000. Implementation of the immediate increase
would have created significant operational challenges for the Human Resources and Finance
departments and especially payroll staff.
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Macroeconomic Conditions: Increased cost of doing business
Inflation
Inflation generally refers to the annual increases in the Consumer Price Index (CPI), Personal
Consumption Expenditures Price Index (PCE), and other measures of household spending.
These indices are based on the cost to purchase a basket of goods consumed by the typical US
urban household.
These and other, similar metrics are useful to measure increases in the cost of living over time
and, in line with the City’s labor philosophy, pay a competitive wage to attract and retain high
quality employees. They do not, however, accurately measure price increases in the City’s non-
staffing expenditures.
According to data from the Federal Reserve, the Consumer Price Index has risen 33% in the last
ten years at a compound annual growth rate of roughly 3%. Most of that increase is attributable
to the post-COVID inflationary period, when year over year CPI increases peaked at 9% in June
2022.
https://fred.stlouisfed.org/graph/?g=1AnDA
The California Construction Cost Index (CCCI) is published by the California Department of
General Services and reports cost trends for specific construction trade labor and materials in the
California market. This index is more representative of the costs to complete our Capital
Improvements Program than the CPI.
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https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division-Resources-List-Folder/DGS-
California-Construction-Cost-Index-CCCI
While the CCCI has followed the CPI’s trend of sharp increases post-pandemic, the overall
increase has been much more drastic. In the last ten years the CCCI increased 64% in total at a
compound annual growth rate of over 5%. This difference in price increases for different goods
and services helps illustrate the challenges the City is experiencing in delivering its Capital
Improvement Program within engineer’s estimates and budgets.
Actual costs
Indexes are useful tools for estimating price changes for a broad variety of purchases, but they
rely on numerous assumptions. They assume consumption of a basket of goods in ratios intended
to align with the purchasing patterns of the most typical consumer. The City may purchase a
drastically different selection of goods and services from the index. Some examples of specific
goods and services purchased by the City and the price increases observed in the last ten years
are included in the table below.
100
125
150
175
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
CCCI
Item Unit 2014 Price 2024 Price % Change
Maintenance access cover Each $11,499.00 $13,500.00 17%
Slurry Seal Sq Yd $1.70 $2.20 29%
Electricity $/kWh $0.16 $0.28 78%
Roadway Signs Each $85.00 $225.00 165%
OSHA Compliance (low cost) Per Project $1,100.00 $2,990.00 172%
OSHA Compliance (high cost) Per Project $15,127.00 $30,300.00 100%
CalTrans Compliance Per Project $1,000.00 $3,500.00 250%
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These costs impact the level of service the City is able to provide, and for fee funded programs,
the cost that is charged to the community.
Sales Tax Revenue
Sales tax is the City’s largest source of revenue and benefited greatly from post-pandemic
consumer trends. With limited options to travel and direct stimulus, consumers increased
spending on taxable goods. As inflation took hold, this spending plateaued.
While current revenue levels are high as community members and visitors continue to spend
while prices are elevated, near zero growth rates present a challenge for the next financial plan.
Source: HdL Companies
Interest rates
To combat record inflation, the Federal Reserve increased its policy rates in an effort to reduce
aggregate demand and cool the economy. Higher interest rates have since reverberated
throughout the markets. The City invests its cash balances in low risk, short duration securities
which benefited greatly from these market conditions.
Since the end of the last fiscal year, the Federal Reserve has reduced its benchmark interest rate
by 75 basis points and has signaled further reductions. The future course of interest rates is highly
uncertain. Still, rates are high compared to recent years and should market rates follow the Fed’s
projections, the City will continue to benefit from higher investment income.
While the City benefits from higher investment income, we also see negative impacts from higher
interest rates. Development activity is highly sensitive to borrowing costs and we have observed
a slowdown in development and fee revenues since interest rates began to increase. There is
also some evidence that higher interest rates are weighing on sales tax earned on rate sensitive
-5%
0%
5%
10%
15%
20%
25%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24
Sales Tax Growth Rates
State City
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purchases like new cars and building materials. The City may also see higher borrowing costs if
debt financing is needed for future infrastructure projects and rates remain elevated.
https://fred.stlouisfed.org/graph/?g=1AADx
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Costs Associated with a Growing Community
The City offers a high level of service to its residents. This is possible at least in part because of
the tax revenue generated from out of town visitors who come to San Luis Obispo to vacation,
enjoy the downtown, shop in big box stores, or purchase cars.
As a result, our City sees per capita taxable sales of nearly double the statewide average:
Source: HdL Companies
According to Census data, the City’s population grew 4% in the ten years from April 1, 2010, to
April 1, 2020, and grew another 5% from April 1, 2020, to July 1, 2023. Many of the new
community members welcomed in recent years moved into our specific plan areas bordered in
purple in this map, which can also be accessed in high resolution at the link below:
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https://www.slocity.org/home/showpublisheddocument/5857/637371427716100000
Much of this development activity has occurred at the perimeter of the city. This can increase the
need for additional infrastructure construction and maintenance. For instance, development on
the City’s Southern border will necessitate construction of a fifth fire station, and development in
the Western portion of the City, when combined with regional trips, contribute to the planned
construction of an interchange over Highway 101 at Prado Road. These two projects are projected
to cost several times our annual capital expenditures budget.
Community growth also contributes to demand for basic services provided by the City like public
safety, recreation opportunities, and more. Data suggest that residents are in fact engaging with
the City more often and using more of the services we provide. Over the last ten years, demand
for a broad variety of services has grown more quickly than the population:
Page 437 of 641
The community has also shown its willingness to pay for these services, as evidenced by the
passage of Measure G-20 in November 2020. Since passage, the City’s Capital Improvements
Program budget has tripled and the City has hired a number of Full Time Employees (FTE) to
provide increased service levels and add new programs.
These investments in the capital budget and staff have enabled the City to keep up with increased
demand for its services over the last few years. As the City develops the next Financial Plan, it
will be necessary to moderate expenditure growth in order to hold space in the budget for the
significant infrastructure investments that the City has committed to. Staff expects that
reprioritization of existing resources will be needed in order to fund any new programs or services.
2014 2024 % Change
Public Safety Calls for Service 34,659 41,683 20%
Fire Service Responses 5,192 7,119 37%
Building Inspections 8,996 9,948 11%
Youth Athletics Participants 1,200 1,368 14%
Open Space Acres 3,510 4,040 15%
Trail Mileage 49 67 37%
City AttorneyHuman ResourcesFinanceUtilities
Police
Public Works
CDD
CSG Admin
Fire
Admin/IT
Parks &
Recreation
11 11
53
71
81
89.75
0
25
50
75
100
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Cumulative FTEs Added Since July 1, 2019
Page 438 of 641
Setting the Stage – General Plan Implementation
2025-27 Financial Plan
The City’s General Plan is the blueprint for growth in the City that addresses all City programs
and services. The General Plan has 396 programs that are contained within the eight elements,
or chapters, of the General Plan. Summaries of each element are provided below. Each year, the
City of San Luis Obispo reports progress on General Plan (including Housing Element)
implementation to the State of California, as required. The General Plan annual report that was
presented to City Council last spring, can be found here. The full General Plan can be found here.
It should be noted that the implementation of the General Plan, including carrying out the
programs in the General Plan require a significant amount of staff time each year, as the programs
in the General Plan represent both ongoing core activities as well as one-time programs and
projects that help move the City toward its goals. The only element that is required to be
periodically updated is the Housing Element, which must be updated every eight years, per state
law. In addition, the State closely monitors the City’s progress toward successful completion of
the programs in the Housing Element. Information on the status of these programs can be found
in the annual report noted above. Staff anticipates that planning for the update of this element will
begin toward the end of the 2025-27 financial plan. In addition to the programs included in each
of the general plan elements, City staff will also be working on implementing a number of other
plans throughout the 2025-2027 budget cycle. These plans include, but are not limited to:
Climate Action Plan
Active Transportation Plan
Economic Development Strategic Plan
DEI Strategic Plan
Homelessness Response Strategic Plan
Parks and Recreation Blueprint for the Future
Police Department Strategic Plan
Fire Department Strategic Plan
Vision Zero Action Plan
Wastewater Collections Infrastructure Renewal Strategy
Water Treatment Infrastructure Renewal Plan Strategy
General Plan Elements
Land Use Element: There are 73 programs in the Land Use Element. These programs
set forth a pattern for the orderly development of land within the City's planning area. This
pattern should be based on residents' preference and on protection of natural assets
unique to the planning area. The Element also describes the expected level of population
growth resulting from construction of the kinds of housing units included in the plan, as
well as the kinds of new commercial and industrial development that are responsive to
the City's economic needs.
Page 439 of 641
Circulation Element: There are 69 programs in the Circulation Element. These
programs recognize implications of land use policy on all modes of movement and sets
up policies, standards, and implementation measures that work with the Land Use
Element update and address both existing and potential circulation opportunities and
deficiencies.
Housing Element: There are 65 programs in the Housing Element. The City updated the
Housing Element in December 2020. The changes to housing policies and programs
reflect the changing needs, resources, and conditions in the community, and respond to
changes in state and federal housing law.
Noise Element: There are 8 programs in the Noise Element. These policies supply the
proper protections needed to allow development and mixture of compatible uses while
protecting residents and land uses from noise impacts.
Conservation / Open Space: There are 68 programs in the Conservation/Open Space
Element. These programs address protection of open space amenities and resources in
detail. The Land Use Element works with this element and incorporates concepts such
as clustering and buffering open space areas to enhance their protection.
Safety Element: There are 34 programs in the Safety Element. These programs find
hazards that influence the locations and types of land uses proposed. The Land Use and
Safety Elements share several safety topics. The Land Use Element update adds to the
Safety Element through the inclusion of safety through environmental design concepts
and to airport safety policies and programs.
Parks & Recreation Element: There are 41 programs in the Parks & Recreation
Element. This program supplies active recreation areas and facilities that are essential to
neighborhoods. The Land Use Element works to incorporate parks and recreation into
the larger land use alternative sites and enhance integration of these resources into
neighborhoods.
Water & Wastewater Element: There are 38 programs in the Water & Wastewater
Element. These programs supply policies and programs to support adequate services
to the community. The Land Use Element includes alternatives that are in keeping with
the services available and ensures that infrastructure is sized appropriately to serve
future service needs and planning.
Page 440 of 641
Setting The Stage – Major City Goals Update
2025-27 Financial Plan
As Council develops its Major City Goals for the next financial plan, staff presents progress
against the current financial plan’s goals for consideration. Much of the information included in
this report has been reported to Council in prior quarterly budget reports.
Economic Resiliency, Cultural Vitality, and Fiscal Sustainability
“In collaboration with local partners, implement initiatives that reinforce a thriving and sustainable
local economy, support a diverse, inclusive, and vibrant community, preserve arts and culture,
and ensure fiscally responsible and sustainable city operations.”
Through September 30, 2024, 39 of 40 of tasks were completed or are on track and one task was
delayed.
Diversity, Equity, and Inclusion (DEI)
“Further our commitment to making San Luis Obispo a welcoming and inclusive city for all by
continuing to incorporate diversity, equity, and inclusion into all programs and policies and
advancing the recommendations of the DEI Task Force.”
Through September 30, 2024, 32 of 32 tasks were completed or are on track.
ER,CV & FS
98%
3%
0%
DEI
100%
0%
0%
Page 441 of 641
Housing and Homelessness
“Support the expansion of housing options for all, and continue to facilitate the production of
housing, including the necessary supporting infrastructure, with an emphasis on affordable and
workforce housing as well as accessibly connected development. Collaborate with local non-profit
partners, non-governmental agencies, the county, the state, and federal governments to advocate
for increased funding and implementation of comprehensive and effective strategies to prevent
and reduce homelessness.”
Through September 30, 2024, 16 of 17 tasks were completed or are on track and one was
delayed.
Climate Action, Open Space & Sustainable Transportation
“Proactively address the climate crisis and increase resiliency through the implementation of the
Climate Action Plan. Use resources to reduce greenhouse gas emissions and reach carbon
neutrality by 2035, with a focus on the preservation and enhancement of convenient and equitable
alternative and sustainable transportation, the preservation of open space, and equitable access
to parks and open space.”
Through September 30, 2024, 49 of 57 tasks were completed or are on track. Seven tasks were
delayed and one additional task was delayed without an identified solution, 4.3f “Active
Transportation Plan (ATP) Tier 1 Network – Railroad Safety Trail (Orcutt to Tiburon) Connection:
Initiate design and environmental review for a project that will complete the gap in the Railroad
Safety Trail in the Orcutt Area between Tiburon Dr. And Orcutt Rd., including replacement of the
narrow culvert on Bullock Lane and pedestrian/bicycle safety improvements at the Orcutt Road /
Union Pacific Railroad Crossing”.
Task 4.3f was delayed due to ongoing negotiations with the railroad operator and developers of
adjacent properties. While negotiations continue, funding was reallocated with the FY 2024-25
Supplemental Budget to projects ready to move forward immediately. For further discussion,
please see the August 20th, 2024 Council Agenda Report to approve the Final Map for the
adjacent property here:
https://opengov.slocity.org/WebLink/DocView.aspx?id=198657&dbid=0&repo=CityClerk
HH
94%
6%
0%
CA, OS, ST
86%
12%
2%
Page 442 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
1.1 1.1 For All Members of the Community
ER,CV & FS Sustainable, Diverse, and Inclusive
Economic Development 1.1
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.
ADM (ED&T) Ongoing Ongoing
ER,CV & FS Sustainable, Diverse, and Inclusive
Economic Development 1.1
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)
ADM
(ED&T/Sustainability)Ongoing Ongoing
ER,CV & FS Sustainable, Diverse, and Inclusive
Economic Development 1.1
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)
ADM (ED&T/DEI) Ongoing Ongoing
ER,CV & FS Sustainable, Diverse, and Inclusive
Economic Development 1.1
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.
PW/Util Ongoing Ongoing
ER,CV & FS Sustainable, Diverse, and Inclusive
Economic Development 1.1 e. Continue to update the employment scorecard and the
economic activity scorecard.
ADM
(ED&T)/CDD/PW/FIN Ongoing Ongoing
1.2 1.2 Business Support
ER,CV & FS Business Support 1.2
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.
ADM (ED&T) Ongoing Ongoing
ER,CV & FS Business Support 1.2
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.
ADM (ED&T) Ongoing Ongoing
Page 443 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
ER,CV & FS Business Support 1.2
c. Continue to promote the City to tourists, visitors and
locals through the efforts of the TBID and the PCC. ADM (ED&T) Ongoing Ongoing
ER,CV & FS Business Support 1.2
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.
CDD Ongoing Ongoing
ER,CV & FS Business Support 1.2
e. Ensure broad and inclusive engagement in area and
specific plans updated by the Community Development
Department to represent the needs of local businesses.
ADM (ED&T)/CDD Ongoing Ongoing
ER,CV & FS Business Support 1.2
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.
CDD FY25 Q4 FY25 Q4
ER,CV & FS Business Support 1.2
g. Continue to support new and expanded private
childcare options through the use of grant funding and
other programs.
ADM (ED&T) Ongoing Ongoing
ER,CV & FS Business Support 1.2
h. Continue to support the childcare options for school
age children through the City's own programs and
programs in conjunction with other partners.
P&R Ongoing Ongoing
ER,CV & FS Business Support 1.2
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.
P&R Ongoing Ongoing
ER,CV & FS Business Support 1.2
j. Represent the interests of the business community
during the implementation of the broadband strategic
plan.
ADM (ED&T) Ongoing Ongoing
Page 444 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
1.3 1.3 Arts & Culture Support
ER,CV & FS Downtown Vitality 1.3
a. Continue to partner with Downtown SLO to ensure the
promotion, resiliency, growth, and vitality of the
Downtown.
ADM (ED&T) Ongoing Ongoing
ER,CV & FS Downtown Vitality 1.3
b. Continue to financially and operationally support
Downtown SLO during the winter holidays including
incentivizing private participation through the matching
program.
ADM (ED&T) Ongoing Complete
ER,CV & FS Downtown Vitality 1.3
c. Continue to support the Downtown SLO programs like
Clean & Safe, the Ambassadors and homelessness
support.
ADM (ED&T) Ongoing Ongoing
ER,CV & FS Downtown Vitality 1.3
d. Develop a Council report and Study Session on
downtown vacancies, the status and possible options to
address any issues identified.
ADM (ED&T) FY24 Q2 Complete
ER,CV & FS Downtown Vitality 1.3
Develop an implementation plan for the recently adopted
Access and Parking Management Plan and begin
execution of the plan.
PW Ongoing Ongoing
ER,CV & FS Downtown Vitality 1.3
f. Begin construction of the Cultural Arts District Parking
Structure.PW FY24 Q2 Complete
ER,CV & FS Downtown Vitality 1.3
g. Replace the existing Mission Plaza Restrooms in
compliance with Mission Plaza Concept Plan and Council
Direction.
PW Ongoing Ongoing
1.4 1.4 Downtown Vitality
ER,CV & FS Support Arts and Culture 1.4
a. Continue to work with our community partners to
ensure the Cultural Vitality of the City.
P&R/ADM (NR&S)/ADM
(ED&T)Ongoing Ongoing
ER,CV & FS Support Arts and Culture 1.4 b. Continue to execute the City's public art master plan. P&R Ongoing Ongoing
Page 445 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
ER,CV & FS Support Arts and Culture 1.4
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.
ADM (ED&T) Ongoing Ongoing
ER,CV & FS Support Arts and Culture 1.4
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.
ADM (ED&T) Ongoing Ongoing
ER,CV & FS Support Arts and Culture 1.4 e. Continue the citywide banner program. ADM (ED&T) Ongoing Ongoing
ER,CV & FS Support Arts and Culture 1.4
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.
ADM (NR&S) FY25 Q4 FY25 Q4
ER,CV & FS Support Arts and Culture 1.4
g. Initiate implementation of the consultant
recommended phased approach to update the City's
historic resources inventory.
CDD FY24 Q2 Complete
ER,CV & FS Support Arts and Culture 1.4
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.
ADM (ED&T) FY24 Q2 Complete
Page 446 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
1.5 1.5 Practicing Fiscal Responsibility
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5
b. Conduct a Study Session on alternative capital project
delivery options and determine whether Council wishes to
proceed with a Charter Amendment.
PW/Util Ongoing Ongoing
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5 c. Implement a City fee program update. CSG FY24 Q4 Complete
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5
Continue to implement and enhance the City's sound
financial management practices to support stability of the
organization and services provided to the community.
Fin Ongoing Ongoing
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5 d. Implement a Development impact fee (AB1600) study
and update. CSG FY24 Q3 FY26 Q2
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5 e. Monitor Public Banking advances and alert the City
Council to major changes. Fin Ongoing Ongoing
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5
f. Continue to support and prioritize employee
development and growth through investing in resources
to train, develop, and onboard new and transitioning
employees.
HR/All Ongoing Ongoing
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5
g. Continue to support employees in managing their
workloads by reviewing and prioritizing work efforts,
goals, and balancing trade‐offs for a new workload.
HR/All Ongoing Ongoing
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5 h. Continue to evaluate and adjust internal meetings to
create more effective meeting practices.HR/All Ongoing Ongoing
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5 i. Continue promoting cross‐department communication
and collaboration amongst employees.HR/All Ongoing Ongoing
ER,CV & FS Ensuring Fiscal Responsibility and
Sustainable City Operations 1.5
j. Continue to evaluate and enhance the training and
usability of Oracle Cloud, the City's Enterprise Resource
Planning/Human Capital Management software.
IT/Fin/HR Ongoing Ongoing
Page 447 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
2.1 2.1 Establish Office of DEI
DEI Operationalize Office of DEI 2.1
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.
Admin‐DEI Ongoing Ongoing
DEI Operationalize Office of DEI 2.1 b. Work with Cal Poly and Cuesta to host interns. Admin‐DEI Ongoing Ongoing
DEI Operationalize Office of DEI 2.1
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.).
Admin‐DEI Ongoing Complete
DEI Operationalize Office of DEI 2.1
d. Continue to support and act as the staff liaison to the
Human Relations Commission (HRC).Admin/DEI Ongoing Complete
DEI Operationalize Office of DEI 2.1
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.
Admin‐DEI Ongoing Complete
2.2 2.2 Develop & Implement DEI Strategic Plan
DEI Develop & Implement DEI Strategic
Plan 2.2
a. Complete a DEI Strategic Plan for comprehensive DEI
initiatives and programming for the organization and
community based on needs, priorities, and resource
assessments.
Admin‐DEI FY24 Q3 Complete
DEI Develop & Implement DEI Strategic
Plan 2.2 b. Implementation of prioritized programs as outlined in
the DEI Strategic Plan within available resources.Admin‐DEI Ongoing Ongoing
2.3 2.3 Workforce Recruitment & Retention
DEI
Foster and Promote Equitable
Recruiting, Hiring, Retention, and
Promotion Practices
2.3
a. Continue to enhance job descriptions and recruiting
materials such as materials in Spanish or in different
formats to easy access.
HR Ongoing Ongoing
DEI
Foster and Promote Equitable
Recruiting, Hiring, Retention, and
Promotion Practices
2.3
b. Assess and develop enhancements processes such as
implementing DEI‐focused screening and interviewing
trainings to personnel and interview panels.
HR Ongoing FY25 Q4
Page 448 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
DEI
Foster and Promote Equitable
Recruiting, Hiring, Retention, and
Promotion Practices
2.3 c. Create and rollout DEI‐focused trainings for employees. HR Ongoing FY25 Q4
DEI
Foster and Promote Equitable
Recruiting, Hiring, Retention, and
Promotion Practices
2.3 d. Examine policies and programs to support primary
caretakers.HR Ongoing Ongoing
DEI
Foster and Promote Equitable
Recruiting, Hiring, Retention, and
Promotion Practices
2.3
e. Continue communicating childcare options and
resources for City employees; additional to First 5
findings. Explore flex schedules, job share, remote
options, etc.
HR Ongoing FY25 Q4
2.4 2.4 Inclusive & Equitable Workplace
DEI Enhance Inclusive & Equitable
Workplace Environment 2.4 a. Develop and adopt a DEI statement for the
organization.Admin‐DEI FY24 Q1 Complete
DEI Enhance Inclusive & Equitable
Workplace Environment 2.4 b. Develop and implement a DEI module in new hire
onboarding process.HR Ongoing FY25 Q4
DEI Enhance Inclusive & Equitable
Workplace Environment 2.4
c. Provide DEI‐related training for all staff of all levels
(Council, Commission, Advisory Board, Directors,
Managers, Staff, etc.).
Admin‐DEI/HR Ongoing Ongoing
DEI Enhance Inclusive & Equitable
Workplace Environment 2.4
d. Complete a planning study for gender‐inclusive
restroom and sleeping facilities for Fire Stations 3 & 4.
Process with design work pending results of study.
Public Works/Fire Ongoing Ongoing
2.5 2.5 Community‐based Policing & Restorative Practices
DEI Community‐based Policing &
Restorative Practices 2.5 a. Promote DEI best practices in Police Department (PD)
recruiting and hiring efforts.Admin‐DEI/PD/HR Ongoing Ongoing
DEI Community‐based Policing &
Restorative Practices 2.5
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.
Admin/PD/Public Works Ongoing Ongoing
DEI Community‐based Policing &
Restorative Practices 2.5
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.
PD Ongoing Ongoing
Page 449 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
DEI Community‐based Policing &
Restorative Practices 2.5 d. Use Community partnerships to help build a 5‐year
strategic plan to create transparency and legitimacy.PD Ongoing Complete
2.6 2.6 Cal Poly & Cuesta Partnerships
DEI
Enhance and Expand Cal Poly & Cuesta
College Partnerships and Educational
Opportunities
2.6
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 further explore partnerships around
education and training.
Admin‐DEI Ongoing Ongoing
DEI
Enhance and Expand Cal Poly & Cuesta
College Partnerships and Educational
Opportunities
2.6
b. Utilize the Assistant VP for Strategic Planning and
Network at Cal Poly OUDI to research best practices,
grants for internships, programs, outreach, innovative
practices, etc.
Admin‐DEI Ongoing Ongoing
DEI
Enhance and Expand Cal Poly & Cuesta
College Partnerships and Educational
Opportunities
2.6
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.
Admin‐DEI Ongoing Ongoing
DEI
Enhance and Expand Cal Poly & Cuesta
College Partnerships and Educational
Opportunities
2.6
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.
Admin‐DEI Ongoing Complete
DEI
Enhance and Expand Cal Poly & Cuesta
College Partnerships and Educational
Opportunities
2.6 e. Contract to develop a feasibility study for a
multicultural center.Admin‐DEI Ongoing Complete
2.7 2.7 Access, Inclusion, Support for Underrepresented
Communities
DEI
Strengthen Public Access and
Engagement through Transformational
Strategies
2.7
a. Support the development and implementation of the
Broadband Strategic Plan to ensure access is equitable
and pursue funding to fill gaps.
Admin‐DEI/IT Ongoing Ongoing
Page 450 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
DEI
Strengthen Public Access and
Engagement through Transformational
Strategies
2.7
b. Continue to provide Community Academy program in
even numbered years including application outreach to
underserved/underrepresented communities.
Admin‐DEI Ongoing Complete
DEI
Strengthen Public Access and
Engagement through Transformational
Strategies
2.7
c. Complete training for applicable staff on the City's
updated Public Engagement & Noticing (PEN) to ensure
diverse participation.
Admin‐DEI Ongoing Ongoing
2.8 2.8 Community Education & Programming
DEI Equity & Inclusion in Budgeting,
Planning, Programming & Policymaking 2.8
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.
Admin‐DEI Ongoing Ongoing
Page 451 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
DEI Equity & Inclusion in Budgeting,
Planning, Programming & Policymaking 2.8 b. Include DEI Manager Financial Planning Steering
Committee meetings.Admin‐DEI Ongoing Ongoing
DEI Equity & Inclusion in Budgeting,
Planning, Programming & Policymaking 2.8
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.
Admin‐DEI Ongoing Ongoing
DEI Equity & Inclusion in Budgeting,
Planning, Programming & Policymaking 2.8
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.
Parks & Rec Ongoing Ongoing
3.1 3.1 Implement Housing Element
HH Housing Element Implementation 3.1
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.
CDD; Attorney FY25 Q4 FY25 Q4
Page 452 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
HH Housing Element Implementation 3.1
b. Initiate an update to the Margarita Area Specific Plan to
include more housing options of all types (affordable,
multi‐family, mixed‐use) on undeveloped land, and work
with property owners on a plan for the completion of the
Prado Road extension to Broad Street.
CDD; PW Transportation FY25 Q4 Complete
HH Housing Element Implementation 3.1
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
CDD; Attorney FY25 Q4 Complete
HH Housing Element Implementation 3.1
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.
CDD FY24 Q3 Complete
HH Housing Element Implementation 3.1
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.
CDD; PW Transportation;
PW Parking Services FY24 Q3 Complete
HH Housing Element Implementation 3.1
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.
CDD; Attorney FY24 Q4 FY25 Q1
3.2 3.2 Implement Inclusionary Housing Ordinance
HH Homelessness Response Strategic Plan
Implementation 3.2
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
CDD; Attorney FY24 Q4 Complete
and ongoing
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MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
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u
s
HH Homelessness Response Strategic Plan
Implementation 3.2
b. Increase homelessness response communications,
resource sharing, and education, including increased
public use of Ask SLO app
CDD; Admin FY24 Q4 Complete
and ongoing
HH Homelessness Response Strategic Plan
Implementation 3.2
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.
CDD; PW; P&R; PD; Fire FY24 Q4 Complete
and ongoing
HH Homelessness Response Strategic Plan
Implementation 3.2
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
CDD; PD; Fire FY24 Q4 Complete
Page 454 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
HH Homelessness Response Strategic Plan
Implementation 3.2
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
CDD; Admin FY24 Q4 Complete
and ongoing
HH Homelessness Response Strategic Plan
Implementation 3.2
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.
Attorney; CDD FY24 Q4 Complete
and ongoing
HH Homelessness Response Strategic Plan
Implementation 3.2
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
CDD FY25 Q2 Complete
3.3 3.3 Below Market Rate Portfolio Management
HH Environmental Clean‐up in Creeks and
Open Space 3.3
a. Environmental clean‐ups in creek and open space areas
associated with abandoned personal property and trash.
(Funding approved on March 7, 2023)
P&R FY25 Q4 FY25 Q4
HH Environmental Clean‐up in Creeks and
Open Space 3.3
b. Environmental clean‐ups in City Parks and public spaces
associated with abandoned personal property and trash.
(Funding approved on March 7, 2023)
PW FY25 Q4 Ongoing
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MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
3.4 3.4 Financial Management
HH Public Safety 3.4 a. Maintain SLOPD bike patrol program as staffing allows PD FY25 Q4 Ongoing
HH Public Safety 3.4
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)
PD FY24 Q1 Complete
4.1 4.1 Implement the Climate Action Plan and Lead by
Example 2023‐25 Work Plans
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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 .
Public Works Ongoing Ongoing
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1 b. Continue to electrify the bus fleet as called for by CAP
Lead by Example task 1.1.A.Public Works Ongoing Ongoing
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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.
Public Works /
Administration FY25 Q2 FY25 Q2
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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.
Administration Ongoing Ongoing
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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
Administration Ongoing Ongoing
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MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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.
Administration / CDD Ongoing Ongoing
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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.
Administration / CDD FY24 Q4 Complete
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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.
Administration / CDD Ongoing Ongoing
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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.
Utilities Ongoing Ongoing
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1
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.
Utilities Ongoing Ongoing
CA, OS, ST Implement the Climate Action Plan and
Lead by Example 2023‐25 Work Plans 4.1 Sustain, Manage, and Enhance the City's Greenbelt and
Make Progress on Planting 10,000 trees by 2035
Public Works /
Administration Ongoing Ongoing
Page 457 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
4.2 4.2 Sustain, Manage, and Enhance the City's Greenbelt
and Make Progress on Planting 10,000 trees by 2035
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2035
4.2
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.
Administration Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2036
4.2 b. Complete installation of adopted trail systems at the
Irish Hills Natural Reserve and at Miossi Open Space.Parks and Recreation Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2037
4.2
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.
Parks and Recreation Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2038
4.2
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.
Parks and Recreation /
Administration Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2039
4.2
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
Parks and Recreation Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2040
4.2
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.
Parks and Recreation Ongoing Ongoing
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MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2041
4.2
g. Implement priority projects at Righetti Hill Open Space
consistent with the Conservation Plan (if adopted in May
2023).
Parks and Recreation Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2042
4.2
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.
Administration / Parks
and Recreation Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2043
4.2
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.
Administration Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2044
4.2
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.
Parks and Recreation /
Administration Ongoing Ongoing
CA, OS, ST
Sustain, Manage, and Enhance the
City's Greenbelt and Make Progress on
Planting 10,000 trees by 2045
4.2
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.
Administration / Parks
and Recreation Ongoing Ongoing
4.3 4.3 Preserve and Enhance Convenient and Equitable
Alternative and Sustainable Transportation Options
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works FY25 Q3 FY26 Q4
Page 459 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works FY25 Q3 FY26 Q2
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works FY25 Q1 FY25 Q4
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works FY25 Q4 FY25 Q4
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works Ongoing Ongoing
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works FY25 Q4 Deferred
Page 460 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works FY25 Q4 FY25 Q4
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works Ongoing Ongoing
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works Ongoing Ongoing
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works Ongoing Ongoing
Page 461 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Public Works /
Administration Ongoing Ongoing
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Administration FY25 Q4 FY25 Q4
CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3
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.
Administration Ongoing Ongoing
4.4 4.4 Increase Community Resilience
CA, OS, ST Increase Community Resilience 4.4
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.
CDD / Utilities / Admin /
PW / Fire Ongoing Ongoing
CA, OS, ST Increase Community Resilience 4.4
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.
Utilities / Public Works /
Administration FY25 Q4 FY25 Q4
Page 462 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST Increase Community Resilience 4.4
d. Evaluate opportunities to integrate climate
considerations in the City's Engineering Standards and
Specifications as called for in CASE program MH‐1.6.
Public Works Ongoing Ongoing
CA, OS, ST Increase Community Resilience 4.4
e. Provide post‐disaster recovery resources and
emergency preparedness education to vulnerable
community members as called for in CASE program MH‐
1.10.
Fire / Community
Development Ongoing Ongoing
CA, OS, ST Increase Community Resilience 4.4
f. Initiate the development of Wildland‐Urban‐Interface
Defensible Space and Home Hardening Program as called
for in CASE program FI‐5.15.
Fire FY24 Q4 FY26 Q4
CA, OS, ST Increase Community Resilience 4.4
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.
Administration Ongoing Ongoing
CA, OS, ST Increase Community Resilience 4.4
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.
Administration FY25 Q4 FY25 Q4
CA, OS, ST Increase Community Resilience 4.4
i. Develop an Urban Creeks Vegetation Management Plan
as called for in CASE program FL‐3.10.Fire / Administration Ongoing Ongoing
CA, OS, ST Increase Community Resilience 4.4
j. Incorporate Traditional Ecological Knowledge into open
space management decisions as called for in CASE
program OP‐7.2.
Administration Ongoing Ongoing
CA, OS, ST Increase Community Resilience 4.4 k. Implement the Mid‐Higuera Bypass Project.Public Works /
Administration Ongoing FY25 Q3
CA, OS, ST Increase Community Resilience 4.4
l. Implement the Laguna Lake Dredging and Sediment
Management Project.
Public Works /
Administration Ongoing Deferred
CA, OS, ST Increase Community Resilience 4.4
m. Implement Silt Removal Projects from Priority Creek
Locations.
Administration / Public
Works Ongoing Ongoing
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MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST Increase Community Resilience 4.4
n Implement existing Community Wildfire Protection Plan
and initiate focused update in 2024. Fire Ongoing FY25 Q4
4.5 4.5 Continue to Build City and Community Capacity for
Transformational Climate Action
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5 a. Participate in the Cal Poly Climate Corps Fellowship
program to build staff capacity as called for in the CAP.
Administration / CDD /
Public Works / Utilities Ongoing Ongoing
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
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.
Administration Ongoing Ongoing
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
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.
Administration Ongoing Ongoing
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
d. Support regional efforts to develop the workforce
required to implement the Climate Action Plan as called
for in CAP task 2.2.A.
Administration Ongoing Ongoing
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
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
Administration Ongoing Ongoing
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
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.
Administration FY24 Q3 Complete
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
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.
Administration Ongoing Ongoing
Page 464 of 641
MCG Strategy
Strategic
Approach # Task/ Action Responsible
Department(s)
Original
Completion
Date
Updated
Completion
Date St
a
t
u
s
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
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.
Administration Ongoing Ongoing
CA, OS, ST
Continue to Build City and Community
Capacity for Transformational Climate
Action
4.5
i. Complete steps and present recommendations and
options to maximize the reuse of wastewater per the
"Road Map" presented to the City Council.
Utilities Ongoing Complete
Page 465 of 641
Page 466 of 641
Q1 Budget Report & Setting the Stage
December 10th, 2024
Recommendation
Receive and discuss the following:
a)FY 2024-25 First Quarter Budget Report
b)Setting the Stage for the 2025-27 Financial Plan
c)General Plan Implementation Report
d)2023-25 Major City Goal Status Update
Budget Considerations
Q1 Budget Report
YTD Revenue
Budget % Received Status
General Fund $118.6M 13%
Water $28.6M 13%
Sewer $20.8M 28%
Parking $10.3M 22%
Transit $17.1M 8%
YTD Operating Expenditures
Budget % Expended Status
General Fund $96.3M 40%
Water $22.7M 57%
Sewer $10.0M 38%
Parking $3.9M 36%
Transit $5.4M 88%
Storm Update
1.The City has expended approximately $13M on storm response to date
2.The estimated total cost to repair storm damage and mitigate against future
damage remains at $48.4M
3.All projects have been reviewed by City’s FEMA and CalOES liaisons and
have been submitted to the CRC for formal review and determination of
eligibility
4.Issues with securing emergency permits from US Army Corps of Engineers
5.Disaster relief funds have been fully obligated nationwide; Feds working to
secure additional funding-unclear what timing is on this
Setting the Stage for the Financial Plan
State Legislation
Macroeconomic Conditions
Community Growth
Setting the Stage –State Legislation
•Governor signed 1,000 new bills in 2024
•$38 billion State budget deficit
•Intersection of Props 13 & 19 and property tax revenue
•New Housing Bills
•Comprehensive 2024 Legislative Briefing scheduled for February 2025
State Legislation –Planning and Building
•AB 1893: Requires strict adherence to review timelines
•SB 937, AB 2663 / 3012 / 1820: Increased transparency rules will require new tools
for public use and changes to the fee process
•SB 1211, AB 2533, SB 450: Updates to City Codes and Standards, plus education
and process improvements, for changes to ADU laws
•AB 1332: Requires staff to develop and implement new pre-approved ADU program
State Legislation –Props 13 & 19
$1.3M
$0.2M
$0.0M
$0.5M
$1.0M
$1.5M
$100k
Market growth
2% growth
Setting the Stage – Macroeconomic Conditions
INFLATION INTEREST RATES REVENUE TRENDS
Inflation Rate Over Time
-5%
0%
5%
10%
15%
20%
25%
30%
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
CPI
CCCI
Sales Tax Growth Rate Trends
-5%
0%
5%
10%
15%
20%
FY
1
4
FY
1
5
FY
1
6
FY
1
7
FY
1
8
FY
1
9
FY
2
0
FY
2
1
FY
2
2
FY
2
3
FY
2
4
State
City
Interest Rates over Time
0%
1%
2%
3%
4%
5%
6%
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
Federal Funds Effective Rate
Housing Starts Over Time
750
1,000
1,250
1,500
1,750
2,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Interest rates
increase
Nationwide Housing Starts (thousands)
Sales Tax Revenue By Industry
Setting the Stage – Community Growth
Growth at perimeter and infrastructure requirements
Increasing demand for services
Measure G-20 increased City resources
Community Growth
2010 2020 2023
Population 45,119 47,063 49,244
Growth Since 2010 -4%9%
Taxable Sales Per Capita
Growing Demand for City Services
2014 2024 % Change
Public Safety Calls for Service 34,659 41,683 20%
Fire Service Responses 5,192 7,119 37%
Building Inspections 8,996 9,948 11%
Youth Athletics Participants 1,200 1,368 14%
Open Space Acres 3,510 4,040 15%
Trail Mileage 49 67 37%
Staff Investments to Maintain & Increase Service Levels
362 387 388 394 394 405 405 447 465 475 483
0
100
200
300
400
500
600
Internal Services
Community Services Group
Public Safety
Infrastructure Needs
…And 11+ other strategic plans directing work efforts
•General Plan includes nearly 400
programs that direct growth in the
community
•Carrying out the programs requires
staff time and resources on an
ongoing basis
•Annual report provided to Council
every April, contains more details
•Planning for update to the Housing
Element to begin towards the end of
the 2025-27 Financial Plan period
Major City Goals Update
ER,CV & FS
98%
3%
0%
DEI
100%
0%
0%
HH
94%
6%
0%
CA, OS, ST
86%
12%
2%
78% Ongoing 59% Ongoing
70% Ongoing 41% Ongoing
Community Survey & Initial Results
Survey closes on December 13th
•1,174 Responses as of 12/10/2024
•Top 5 Priorities from survey responses so far:
•Homelessness
•Infrastructure Maintenance
•Downtown Vitality
•Housing Supply & Affordability
•Open Space
•View all responses at
www.slocity.org/opencityhall
January 14th – Budget Foundation
Review
community
Input and
prepare for
Community
Forum and
Goal Setting
Workshop
Fiscal
Policies and
Budget
Balancing
Strategies
Format of
Financial
Plan
Long-term
economic
forecast
Additional
discretionary
payments to
CalPERs
Capital
Improvement
Projects
1/
1
4
/
2
0
2
5
Budget Foundation
1/
2
3
/
2
0
2
5
Community Forum
2/
8
/
2
0
2
5
Goal Setting
4/
1
5
/
2
0
2
5
Strategic Budget Direction 6/
3
/
2
0
2
5
Budget Adoption
Upcoming Budget Dates
Recommendation
Receive and discuss the following:
a)FY 2024-25 First Quarter Budget Report
b)Setting the Stage for the 2025-27 Financial Plan
c)General Plan Implementation Report
d)2023-25 Major City Goal Status Update
Appendix
City Observed Price Increases