HomeMy WebLinkAbout12/10/2024 Item 6b, Jackson, Kuhn, and McDonald - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: December 10, 2024
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
Riley Kuhn, Principal Budget Analyst
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 6B 2025-27 FINANCIAL PLAN - SETTING THE STAGE & FIRST
QUARTER BUDGET REPORT
Staff received the following questions, regardin g the Budget Report and Financial Plan
item. The questions are below with staff’s response shown in italics:
1) Why are the debt service expenditures so high for this time of year for SLR
CFD?
Debt service expenditures are high early in the year because the first of two annual
debt service payments includes both principal and interest. The remaining
payment due in the second half of the year will include interest only and will not
exceed the remaining budget.
2) The Broad Street Park construction project is listed as ongoing. Is that project
complete?
The Broad Street Park construction project was listed as ongoing in the Q1 report
(July 2024 to September 2024) because the project was not fully completed until
Q2 2025. During Q1, we were still waiting for the park to be energized by PG&E,
which delayed the final completion. The project’s completion will be reflected in the
Q2 report.
3) Was the solar installation completed on Sinsheimer Pool, Fire Station 1, and the
Bus yard?
The solar installation projects for Sinsheimer Pool, Fire Station 1, and the Bus Yard
have not yet been completed. The City Council recently approved the agreement
with Forefront for these projects as a Power Purchase Agreement (PPA). Now that
the agreements are executed, Forefront has begun the design work. We are
expecting completion of these projects by March 2026.
ITEM 6B 2025-27 FINANCIAL PLAN - SETTING THE STAGE & FIRST QUARTER
BUDGET REPORT Page 2
4) The Setting the Stage document describes our population growth during
various periods, with the most recent growth of 5% from 4/20 -7/23. I believe our
general plan supposes a growth rate of about 1% per year. Are we still generally
falling within our growth projections?
Yes, we are still generally falling within our growth projections. The last General
Plan Annual Report (page 21) discusses this and states that on average between
2015 and 2023 the City maintained an average annual growth rate of .98%. Staff
will be bringing the 2024 General Plan Annual Report with updated statistics to the
City Council for review in April 2025.
5) What percentage of total Major City Goal tasks have been completed and how
many will require ongoing action into 2025 -27? Many strategies are listed as
"ongoing" with a green status indicator. Does this mean that the program is
fully up and running? How should I read a strategy as "ongoing"?
All Major City Goal tasks were assigned targeted completion dates with the 2023 -
25 Financial Plan. As of FY 2024-25 Q1, 21% of tasks have an updated completion
date of “Complete”. Many other tasks created an ongoing work effort. 106 of 146
tasks were assigned original completion dates of “Ongoing”. A status of green
indicates that the task is on track or complete, yellow indicates that the task is
delayed, and red indicates that the task is delayed without an identified solution.
6) What are the estimated costs of the Storm projects detailed in the Q1 Budget
Report?
The estimated costs of the storm projects detailed in the Q1 Budget Report are
provided in the revised table below. This table includes the estimated costs as of
August 2024; however, these figures do not account for inflation, changes in
market conditions, or other potential cost adjustments since that time. Because the
projects are currently in the early phases—either Project Initiation or Design—
construction will occur at a later stage, meaning that the final costs are likely to
change. Adjustments may be necessary to account for inflation, evolving material
costs, or unforeseen design complexities as the projects progress toward
construction.
In the Q1 Budget Report, the percentage completion for each project is shown in
a table that organizes the projects by their respective phases (e.g., Project
Initiation, Design). These percentages indicate the progress within each phase.
For example, if a project in the Design phase is marked as 50% complete, this
means that 50% of the design work—such as plans and specifications—has been
completed. It is important to note that these percentages reflect the status of the
work and not the spending or funding allocated to the project.
ITEM 6B 2025-27 FINANCIAL PLAN - SETTING THE STAGE & FIRST QUARTER
BUDGET REPORT Page 3
7) What new legislation will take effect in January?
While some of this legislation was highlighted in the Setting the Stage for the 2025 -
27 Financial Plan report (Item 6a – Attachment B), a complete 2024 legislative
briefing will be presented to the City Council in February 2025. On December 6,
2025, the League of California Cities published its 2024 Legislative Report, offering
a comprehensive overview of significant legislative developments and policies
impacting municipalities. A link to the full report can be found here:
https://www.calcities.org/docs/default-source/advocacy/2024-legislative-report-
final.pdf?sfvrsn=4d267d7d_5